Document:

Exhibit
10.1

 

AMENDED
AND RESTATED

 

STOCKHOLDERS
AGREEMENT

 

THIS
AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this “Agreement”), is made as of the 2nd day of February 2016
(the “Effective Date”), by and among Actelis Networks Inc., a Delaware corporation (the “Company”),
Tuvia Barlev (the “Founder”), Ram Vromen (the “Representative” and collectively with the Founder
the “Common Holders”), holders of Non-Voting Common Stock as listed on Schedule A hereto (each, a “Non-
Voting Common Holder” and collectively, the “Non-Voting Common Holders”), holders of Series A Convertible
Preferred Stock as listed on Schedule B (each a “Preferred A Shareholder” and collectively, the “Preferred
A Shareholders”) and the investors listed on Schedule C hereto (each, a “Preferred B Shareholder”
and collectively, the “Preferred B Shareholders” and collectively with the Preferred A Shareholders, the “Preferred
Shareholders”) (each, a party to this Agreement, and collectively, parties to this Agreement).

 

W
I T N E S S E T H :

 

WHEREAS,
the Company, the Common Holders and the Preferred A Shareholders previously entered into a Shareholders’ Agreement, dated February
24, 2015, as amended by way of that certain amendment by and between the Company and the Requisite Parties (as hereinafter defined) and
dated November 30, 2015 (collectively, the “Prior Agreement”).

 

WHEREAS,
the Company and certain of the Preferred Shareholders are parties to the Series B Preferred Stock Purchase Agreement of even date herewith,
pursuant to which such Preferred Shareholders are purchasing the Company’s Series B Preferred Shares (the “Purchase Agreement”);
and

 

WHEREAS,
in order to induce the Preferred B Shareholders to invest funds in the Company pursuant to the Purchase Agreement, the Preferred B Shareholders’
obligations under the Purchase Agreement are conditioned upon the execution and delivery of this Agreement by the Preferred B Shareholders,
and the Preferred A Shareholders holding a majority and interest of the Series A Preferred Convertible Stock, the Founder and the Company
(the “Requisite Parties”); and

 

NOW,
THEREFORE, the parties hereto, which include the Requisite Parties, hereby agree that the Prior Agreement shall be amended and restated
in its entirety by this Agreement, and the parties to this Agreement, in consideration of the mutual promises and covenants set forth
herein, hereby agree as follows:

 

1.
Definitions. For the purpose of this Agreement:

 

1.1 “Affiliates”
means, (A) with respect to a Shareholder which is an entity or corporation: (i) in the case of a transferor which is a partnership –
its limited partners, general partners or the limited or general partners of such limited or general partners; (ii) in the case of any
incorporated shareholder (whether company or partnership) – any legal entity which controls, is controlled by, or is under common
control with or by the general partner of such incorporated shareholder (iii) a transfer of all Shareholder’s shares upon the liquidation
or dissolution of Shareholder’s fund or (iv) a transfer of shares by an Shareholder to a parallel investment fund of such Shareholder;
(B) with respect to a Shareholder who is an individual: (i) a spouse, child, brother, sister, or parent of the shareholder; or (ii) an
entity wholly-owned controlled by such shareholder, provided that such entity remains wholly-owned by such shareholder; or (iii) a trust
for the benefit of the shareholder; or (iv) a beneficiary of shares held in trust in accordance with the Company’s share option
plan as approved by the Board.

 

     

     

    

 

1.2 “Preferred
Stock” means Series A Preferred Stock and Series B Preferred Stock of the Company.

 

1.3 “Shareholder”
means a stockholder of the Company who is party to this Agreement.

 

2.
Affirmative Covenants.

 

2.1 Delivery
of Financial Statements. The Company shall deliver to each Preferred Shareholder h and the Founder (each, a “Major Stockholder”),
the following:

 

(a) As
soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of the Company, a consolidated balance
sheet of the Company as of the end of such year, and statements of income and statements of cash flow of the Company for such year, setting
forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, United States dollar-denominated,
prepared in accordance with US generally accepted accounting principles (“GAAP”), audited by a firm of Independent
Certified Public Accountants approved by the Representative, and accompanied by an opinion of such firm which opinion shall state that
such balance sheet and statements of income and cash flow have been prepared in accordance with GAAP applied on a basis consistent with
that of the preceding fiscal year, and present fairly and accurately the financial position of the Company as of their date, and that
the audit by such accountants in connection with such financial statements has been made in accordance with generally accepted auditing
standards; and

 

(b) As
soon as practicable, but in any event within fourteen (14) days after the end of each month, a report in a form agreed from time to time
by the Company’s Board of Directors (the “Board”).

 

2.2 Accounting.
The Company will maintain and cause each of its Subsidiaries to maintain a system of accounting established and administered in accordance
with GAAP consistently applied, and will set aside on its books and cause each of its operating Subsidiaries to set aside on its books
all such proper reserves as shall be required by GAAP. For purposes of this Section 2.2, “Subsidiary” means any corporation
or entity at least a majority of whose voting securities are at the time owned by the Company, or by one or more Subsidiaries, or by
the Company and one or more Subsidiaries.

 

2.3 Confidentiality.
Each Shareholder agrees that such Shareholder will keep confidential and will not disclose, divulge, or use for any purpose (other
than to monitor its investment in the Company) any Confidential Information (as defined below) obtained from the Company pursuant to
the terms of this Agreement (including notice of the Company’s intention to file a registration statement), unless such Confidential
Information (a) is known or becomes known to the public in general (other than as a result of a breach of this Section 2.3 by such Shareholder);
(b) is or has been independently developed or conceived by the Shareholder without use of the Company’s confidential information;
or (c) is or has been made known or disclosed to the Shareholder by a third party without a breach of any obligation of confidentiality
such third party may have to the Company; provided, however, that a Shareholder may disclose Confidential Information (i) to its employees,
attorneys, accountants, consultants, and other professionals (together the “Professionals”) to the extent necessary
to obtain their services in connection with monitoring its investment in the Company, provided that such Professionals are subject to
confidentiality due to their rules of professional conduct, agree to keep such information confidential or are already subject to a confidentiality
agreement with such Shareholder; (ii) to any prospective purchaser of any Registrable Securities from such Shareholder, if such prospective
purchaser agrees to be bound by the provisions of this Section 2.3; (iii) to any affiliate, partner, member, stockholder, or wholly owned
subsidiary of such Shareholder (each an “Affiliate”) in the ordinary course of business, provided that such Shareholder
informs such Affiliate that such information is confidential and such Affiliate agrees to keep such information confidential or such
Affiliate is already subject to a confidentiality agreement with such Shareholder; or (iv) as may otherwise be required by law, provided
that the Shareholder promptly notifies the Company of such disclosure and takes reasonable steps to minimize the extent of any such required
disclosure. The Company acknowledges that certain of the Major Stockholders are in the business of venture capital investing and therefore
review the business plans and related proprietary information of many enterprises, including enterprises that may have products or services
that compete directly or indirectly with those of the Company. Nothing in this Agreement shall preclude or in any way restrict the Major
Stockholders from investing or participating in any particular enterprise, regardless of whether such enterprise has products or services
that compete with those of the Company, without derogating from the confidentiality restrictions set forth herein. For purposes of this
Section 2.3 “Confidential Information” shall mean information obtained pursuant to Section 2.1.

 

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2.4 Termination
of Financial Information Rights. The Company’s obligation to deliver the financial statements and other information under Section
2.1 shall terminate and shall be of no further force or effect upon the earlier of (i) closing of an event of Liquidation (as such term
is defined in the existing Certificate of Incorporation as currently in effect) and (ii) closing of the Company’s initial firmly
underwritten public offering of its Common Stock pursuant to an effective registration statement under the United States Securities Act
of 1933, as amended (the “Securities Act”), or equivalent law of another jurisdiction yielding at least US$5 million
to the Company at a Company’s valuation of at least US$15 million (a “Qualified IPO”). Thereafter, the Company
shall deliver to the Preferred Shareholders, and its assignees or transferees, such financial information as the Company from time to
time provides to other holders of its shares.

 

2.5 Spin-Off.
In the event that the Board adopts a resolution for a spin-off, a split of one of the Company’s business unit or otherwise establishes
a new separate business entity, and seeks equity investments by parties other than the Company itself or its wholly owned subsidiaries,
unless otherwise is determined by the Board with the affirmative vote of at least two (2) Preferred Directors, each Preferred Shareholder
shall have a right of first refusal to participate in the funding of such new entity pro rata to its holdings in the Company at the time
of such Board resolution.

 

3. Preemptive
Rights. Until a Qualified IPO, each Major shall have pre-emptive rights to purchase, pro-rata to the outstanding voting share capital
of the Company held by all voting Shareholders, all (or any part) of New Securities (as defined below) that the Company may, from time
to time, propose to sell and issue. The Major Stockholder’s pro rata share shall be the ratio of the number of shares of the Company’s
Common Stock (assuming for purposes of this Section that all Preferred Stock have been converted into Common Stock) then held by the
Major Stockholder as of the date of the Rights Notice (as defined in Section 2(b)), to the sum of the total number of such Common Stock
held by all voting Shareholders, excluding for the sake of clarity, all Non-Voting Common Stock. This right of pre-emptive rights shall
be subject to the following provisions:

 

(a) “New
Securities” shall mean any Common or Preferred Stock of any kind of the Company, whether now or hereafter authorized, and rights,
options, or warrants to purchase said Common or Preferred Stock, and securities of any type whatsoever that are, or may become, convertible
into or exchangeable for said common or preferred stock; provided, however, that “New Securities” shall
not include (i) Common Stock issued by the Company in connection with subdivisions, combinations or issuances of dividends payable in
additional shares of Common Stock, or other securities or rights convertible into, or entitling the holder thereof to receive directly
or indirectly, additional Common Stock; (ii) Common Stock issued to officers, directors or employees of, or bona fide consultants to,
the Company pursuant to a stock option plan or purchase plan approved by the Board (“Plan”) for employees, officers,
directors or bona fide consultants of the Company; (iii) Common Stock issued or issuable upon conversion of the Preferred Stock.

 

(b) If
the Company proposes to issue New Securities, it shall give the Major Stockholders written notice (the “Rights Notice”)
of its intention, describing the New Securities, the price, the general terms upon which the Company proposes to issue them, and the
number of shares that the Major Stockholder has the right to purchase under this Section 3. Each Major Stockholder (including, for this
purpose, any party to whom the Major Stockholder is permitted to assign its interests under this Agreement pursuant to Section 5.3 without
consent) shall have fourteen (14) days from delivery of the Rights Notice to agree to purchase (i) all or any part of its pro-rata
share of such New Securities, and (ii) all or any part of the pro- rata share of any other shareholder (including for this purpose any
permitted transferee of the Shareholder) entitled to such rights to the extent that such other shareholder does not elect to purchase
its full pro-rata share, in each case for the price and upon the general terms specified in the Rights Notice, by giving written notice
to the Company setting forth the quantity of New Securities to be purchased. If the acceptances, in the aggregate, are in respect of
all of, or more than, the New Securities, then the accepting Major Stockholders shall acquire the New Securities, on the terms aforementioned,
in proportion to their respective holdings provided that no Major Stockholder shall be entitled to acquire under the provisions of this
Section 2 more than the number of New Securities initially accepted by such Major Stockholder and upon the allocation to such Major Stockholder
of the full number of shares so accepted, such Major Stockholder shall be disregarded in any subsequent computations and allocations
hereunder. Any shares remaining after the computation of such respective entitlements shall be re-allocated among the accepting Major
Stockholders (other than those to be disregarded as aforesaid), in the same manner, until one hundred percent (100%) of the New Securities
have been allocated as aforesaid.

 

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(c) If
the Major Stockholders, within the period or periods specified in Section 2(b), submit acceptances to purchase, in the aggregate, less
than all of the New Securities, the Company shall have ninety (90) days after delivery of the Rights Notice to sell the unsold portion
of the New Securities at a price and upon general terms no more favorable to the purchasers thereof than specified in the Rights Notice.
If the Company has not sold the New Securities within said ninety (90) day period the Company shall not thereafter issue or sell any
New Securities without first offering such securities to the Major Stockholders in the manner provided above.

 

4. Registration.
The following provisions govern the registration of the Company’s securities:

 

4.1
Definitions. As used herein, the following terms have the following meanings:

 

“Holder”
means holder of outstanding Registrable Securities or shares convertible into Registrable Securities, who acquired such Registrable Securities
or shares convertible into Registrable Securities in a transaction or series of transactions not involving any registered public offering.

 

“Form
S-3” means Form S-3 under the Securities Act, as in effect on the date hereof or any registration form under the Securities
Act subsequently adopted by the Securities and Exchange Commission (“SEC”) which permits inclusion or incorporation
of substantial information by reference to other documents filed by the Company with the SEC.

 

“Initiating
Holders” means Holders of at least fifty percent (50%) of the then outstanding Registrable Securities, assuming for purposes
of such determination the conversion of all shares convertible into Registrable Securities.

 

“Register”,
“registered” and “registration” refer to a registration effected by filing a registration statement
in compliance with the Securities Act and the declaration or ordering by the Commission of effectiveness of such registration statement,
or the equivalent actions under the laws of another jurisdiction.

 

“Registrable
Securities” means all Common Stock issuable upon conversion of the Preferred Stock, Common Stock held by the Representative
and the Founder, all Common Stock issued by the Company in respect of such shares and any additional shares of Common Stock or Preferred
Stock of the Company that the Major Stockholders may hereafter purchase pursuant to their preemptive rights, rights of first refusal
or otherwise, or Common Stock issued on conversion or exercise of other securities so purchased.

 

4.2 Incidental
Registration. If the Company at any time proposes to register any of its securities, other than in a registration under Section 4.3
or Section 4.4 of this Agreement, it shall give notice to the Holders of such intention. Upon the written request of any Holder given
within twenty (20) days after receipt of any such notice, the Company shall include in such registration all of the Registrable Securities
indicated in such request, so as to permit the disposition of the shares so registered. Notwithstanding any other provision of this Section
3.2, if the managing underwriter advises the Company in writing that marketing factors require or favor a limitation of the number of
shares to be underwritten, then there shall be excluded from such registration and underwriting to the extent necessary to satisfy such
limitation, first shares held by stockholders other than the Holders and then to the extent necessary, shares held by the Holders (pro
rata to the respective number of Registrable Securities required by the Holders to be included in the registration); provided,
however, unless otherwise agreed to in writing by Holders of at least a majority of the Registrable Securities then outstanding,
in no event shall the amount of Registrable Securities of the Holders included in the registration be reduced below twenty five percent
(25%) of the total amount of securities included in such registration, unless such offering is the IPO, in which case such Holders may
be excluded entirely or partially if the underwriters make the determination described above and no securities other than those of the
Company are included in such registration; and provided, however, that in any event all Registrable Securities must be
included in such registration prior to any other securities of the Company (with the exception of securities to be issued by the Company
to the public).

 

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4.3 Demand
Registration. At any time commencing six (6) months following the closing of the Company’s initial firmly underwritten public
offering of its Common Stock pursuant to an effective registration statement under the Securities Act, or equivalent law of another jurisdiction
(“IPO”), the Initiating Holders may request in writing that all or part of the Registrable Securities shall
be registered for trading on the securities exchange on which the IPO took place. Any such demand must request the registration of shares
in a minimum amount, net of underwriting discounts and commissions, exceeding two million United States Dollars (US$2,000,000). Within
ten (10) days after receipt of any such request, the Company shall give written notice of such request to the other Holders and shall
include in such registration all Registrable Securities held by all such Holders who wish to participate in such demand registration
and provide the Company with written requests for inclusion therein within fifteen (15) days after the receipt of the Company’s
notice. Thereupon, the Company shall, as soon as practicable, and in any event within ninety (90) days after the date such request is
given by the Initiating Holders, file and use its commercially reasonable efforts to effect the registration of all Registrable Securities
as to which it has received requests for registration for trading on the securities exchange specified in the request for registration
(including, without limitation, filing post-effective amendments, appropriate qualifications under applicable blue sky or other state
securities laws, and appropriate compliance with the Securities Act) and to permit or facilitate the sale and distribution of all or
such portion of such Registrable Securities as are specified in such request; provided, however, that the Company shall
not be required to effect any registration under this Section 4.3, within a period of one hundred and eighty (180) days following the
effective date of a previous registration, and in any of the following cases: (i) if the Company shall furnish to the Initiating Holders
a certificate signed by the Chairman of the Board or the President of the Company stating that in the good faith judgment of the Board,
the Board has determined that such registration would be materially detrimental to the Company and its stockholders at such time; in
which event the Company shall have the right to defer the filing of the registration statement for a period of not more than ninety (90)
days after receipt of the request of the Preferred Holder or Preferred Holders under this Section 4.3, provided, however,
that the Company shall not be entitled to defer the filing of the registration pursuant to this provision more than once in any twelve
month period; (ii) if the Company has previously effected two (2) demand registrations pursuant to the this Section 4.3 and such registrations
have been declared or ordered effective; (iii) in any particular jurisdiction in which the Company would be required to execute a general
consent to service of process in effecting such registration, qualification, or compliance, unless the Company is already subject to
service in such jurisdiction and except as may be required by the Securities Act; and (iv) during the period starting with the date the
Company gives written notice to the Initiating Holder(s) of an impending Company-initiated registration, which notice may be given no
more than forty five (45) days prior to the Company’s good faith estimate of the date of filing of, and ending on a date ninety
(90) days after the effective date of, such registration; provided that (A) the Company is actively employing in good faith all
reasonable efforts to cause such registration to become effective, and (B) if the effective date of such registration has not occurred
within sixty (60) days after the giving of such notice, then this paragraph (iv) shall no longer apply for a period of one year following
the expiration of such 60-day period. Notwithstanding any other provision of this Section 4.3, if the managing underwriter advises the
Holders in writing that marketing factors require a limitation of the number of shares to be underwritten, then the Company shall so
advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares that may
be included in the underwriting shall be allocated to the Holders of such Registrable Securities on a pro rata basis based on the number
of Registrable Securities held by all such Holders (including the Initiating Holders). Any Registrable Securities excluded or withdrawn
from such underwriting shall be withdrawn from the registration. The Company shall not register securities for sale for its own account
in any registration requested pursuant to this Section 4.3 unless permitted to do so by the written consent of Holders who hold at least
fifty percent (50%) of the Registrable Securities as to which registration has been requested. The Company may not cause any other registration
of securities for sale for its own account (other than a registration effected solely to implement an employee benefit plan) to be initiated
after a registration requested pursuant to Section 4.3 and to become effective less than one hundred twenty (120) days after the effective
date of any registration requested pursuant to Section 4.3.

 

4.4 Form
S-3 Registration. In case the Company shall receive from any Holder or Holders a written request or requests that the Company effect
a registration on Form S-3, and any related qualification or compliance, with respect to Registrable Securities, the Company shall within
ten (10) days after receipt of any such request give written notice of the proposed registration, and any related qualification or compliance,
to all other Holders, and include in such registration all Registrable Securities held by all such Holders who wish to participate in
such registration and provide the Company with written requests for inclusion therein within fifteen (15) days after the receipt of the
Company’s notice. Thereupon, the Company shall as soon as practicable, use its commercially reasonable efforts to effect such registration
and all such qualifications and compliances as may be so requested and as would permit or facilitate the sale and distribution of all
or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request
given within fifteen (15) days after receipt of such written notice from the Company; provided, however, that the Company
shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 4.4, (i) if Form S-3 is
not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company
entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate
price to the public (net of any underwriters’ discounts or commissions) of less than Five Hundred Thousand United States dollars
($500,000); (iii) if the Company shall furnish to the Holders a certificate signed by the Chairman of the Board or the President of the
Company stating that in the good faith judgment of the Board, the Board has determined that it would be materially detrimental to the
Company or its stockholders for such Form S-3 registration statement to be effected at such time, in which event the Company shall have
the right to defer the filing of the Form S-3 registration statement for a period of not more than one hundred twenty (120) days after
receipt of the request of the Holder or Holders under this Section 4.4; provided, however, that the Company shall not utilize
this right more than once in any twelve (12) month period; (iv) if the Company has, within the six (6) month period preceding the date
of such request, already effected a registration on Form S-3 for the Holders pursuant to this Section 4.4; (v) during the period starting
with the date sixty (60) days prior to the Company’s estimated date of filing of, and ending on the date one hundred eighty (180)
days immediately following the effective date of, a registration statement made under Section 4.2 hereof, provided that the Company is
actively employing in good faith reasonable efforts to cause such registration statement to become effective and that the Company’s
estimate of the date of filing such registration statement is made in good faith; or (vi) in any particular jurisdiction in which the
Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration,
qualification or compliance.

 

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Registrations
effected pursuant to this Section 4.4 shall not be counted as demands for registration or registrations effected pursuant to Section
4.3.

 

4.5
Designation of Underwriter.

 

(a) In
the case of any registration effected pursuant to Section 4.3 or 4.4, the Initiating Holders that submitted the request for registration
shall have the right to designate the managing underwriter(s) in any underwritten offering.

 

(b) In
the case of any registration initiated by the Company, the Company shall have the right to designate the managing underwriter in any
underwritten offering.

 

4.6 Expenses.
All expenses incurred in connection with any registration under Section 4.2, Section 4.3 or Section 4.4 shall be borne by the Company
(including the reasonable fees and disbursements of a single special counsel for the Holders); provided, however, that
each of the Holders participating in such registration shall pay its pro rata portion of discounts or commissions payable to any underwriter.

 

4.7 Indemnities.
In the event of any registered offering of securities of the Company pursuant to this Section 4:

 

(a) The
Company will indemnify and hold harmless, to the fullest extent permitted by law, any Holder, the partners, members, managers, officers,
directors and stockholders of such Holder, any underwriter for such Holder, and each person, if any, who controls the Holder or such
underwriter, from and against any and all losses, damages, claims, liabilities, joint or several, costs and expenses (including any amounts
paid in any settlement effected with the Company’s consent) to which the Holder or any such underwriter or controlling person may
become subject under applicable law or otherwise, insofar as such losses, damages, claims, liabilities (or actions or proceedings in
respect thereof), costs or expenses arise out of or are based upon (i) any untrue statement or alleged untrue statement of any material
fact contained in the registration statement or included in the prospectus, as amended or supplemented, (ii) the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of
the circumstances in which they are made, not misleading, or (iii) any violation or alleged violation by any other party hereto of the
Securities Act, the Exchange Act (as defined below), any state securities law, or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law, and the Company will reimburse the Holder, such underwriter, each such controlling
person of the Holder or the underwriter, or other aforementioned person or entity promptly upon demand, for any reasonable legal or any
other expenses incurred by them in connection with investigating, preparing to defend or defending against or appearing as a third-party
witness in connection with such loss, claim, damage, liability, action or proceeding; provided, however, that the Company
will not be liable in any such case to the extent that any such loss, damage, liability, cost or expense arises out of or is based upon
an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished in writing
by a Holder, such underwriter or such controlling persons in writing specifically for inclusion therein; provided, further,
that this indemnity shall not be deemed to relieve any underwriter of any of its due diligence obligations; provided, further,
that the indemnity agreement contained in this subsection 4.7(a) shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability or action if such settlement is effected without the consent of the Company, which consent shall not be unreasonably
withheld. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the selling shareholder,
the underwriter or any controlling person of the selling shareholder or the underwriter, and regardless of any sale in connection with
such offering by the selling shareholder. Such indemnity shall survive the transfer of securities by a selling shareholder.

 

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(b) To
the extent permitted by law, each Holder participating in a registration hereunder, severally and not jointly, in proportion to the number
of Registrable Securities sold by such Holder, will indemnify and hold harmless the Company, each other Holder participating in such
registration, any underwriter for the Company, or for any such other Holder, and each person, if any, who controls the Company or such
underwriter or such other Holder, from and against any and all losses, damages, claims, liabilities, costs or expenses (including any
amounts paid in any settlement effected with the selling shareholder’s consent) to which the Company or any such controlling person
and/or any such underwriter and/or such other Holder may become subject under applicable law or otherwise, insofar as such losses, damages,
claims, liabilities (or actions or proceedings in respect thereof), costs or expenses arise out of or are based on (a) any untrue or
alleged untrue statement of any material fact contained in the registration statement or included in the prospectus, as amended or supplemented,
or (b) the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances in which they were made, not misleading, and each such Holder will reimburse the Company,
each other Holder participating in such registration, any underwriter and each such controlling person of the Company or any underwriter,
promptly upon demand, for any reasonable legal or other expenses incurred by them in connection with investigating, preparing to defend
or defending against or appearing as a third-party witness in connection with such loss, claim, damage, liability, action or proceeding;
in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission
was so made in strict conformity with written information furnished by such Holder specifically for inclusion therein. The foregoing
indemnity agreement is subject to the condition that, insofar as it relates to any such untrue statement (or alleged untrue statement)
or omission (or alleged omission) made in the preliminary prospectus but eliminated or remedied in the amended prospectus at the time
the registration statement becomes effective or in the Final Prospectus, such indemnity agreement shall not inure to the benefit of (i)
the Company and (ii) any underwriter, if a copy of the Final Prospectus was not furnished to the person or entity asserting the loss,
liability, claim or damage at or prior to the time such furnishing is required by the Securities Act; provided, further,
that this indemnity shall not be deemed to relieve any underwriter of any of its due diligence obligations; provided, further,
that the indemnity agreement contained in this subsection 4.7(b) shall not apply to amounts paid in settlement of any such claim, loss,
damage, liability or action if such settlement is effected without the consent of the Holders, as the case may be, which consent shall
not be unreasonably withheld. In no event shall the liability of a Holder exceed the net proceeds from the offering received by such
Holder.

 

(c) Promptly
after receipt by an indemnified party pursuant to the provisions of Sections 4.7(a) or 4.7(b) of notice of the commencement of any action
involving the subject matter of the foregoing indemnity provisions, such indemnified party will, if a claim thereof is to be made against
the indemnifying party pursuant to the provisions of said Section 4.7(a) or 4.7(b), promptly notify the indemnifying party of the commencement
thereof; but the omission to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified
party otherwise than hereunder. In case such action is brought against any indemnified party and it notifies the indemnifying party of
the commencement thereof, the indemnifying party shall have the right to participate in, and, to the extent that it may wish, jointly
with any other indemnifying party similarly notified, to assume the defense thereof with counsel reasonably satisfactory to such indemnified
party; provided, however, that if the defendants in any action include both the indemnified party and the indemnifying
party and there is a conflict of interests which would prevent counsel for the indemnifying party from also representing the indemnified
party, the indemnified party or parties shall have the right to select one separate counsel, with the fees and expenses to be paid by
the indemnifying party, to participate in the defense of such action on behalf of such indemnified party or parties. After notice from
the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be
liable to such indemnified party pursuant to the provisions of said Sections 4.7(a) or 4.7(b) for any legal or other expense subsequently
incurred by such indemnified party in connection with the defense thereof, unless (i) the indemnified party shall have employed counsel
in accordance with the provision of the preceding sentence, (ii) the indemnifying party shall not have employed counsel reasonably satisfactory
to the indemnified party to represent the indemnified party within a reasonable time after the notice of the commencement of the action
and within 15 days after written notice of the indemnified party’s intention to employ separate counsel pursuant to the previous
sentence, or (iii) the indemnifying party has authorized the employment of counsel for the indemnified party at the expense of the indemnifying
party. No indemnifying party will consent to entry of any judgment or enter into any settlement which does not include as an unconditional
term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim
or litigation.

 

(d) If
recovery is not available under the foregoing indemnification provisions, for any reason other than as specified therein, the parties
entitled to indemnification by the terms thereof shall be entitled to contribution to liabilities and expenses as more fully set forth
in an underwriting agreement to be executed in connection with such registration. In determining the amount of contribution to which
the respective parties are entitled, there shall be considered the parties’ relative knowledge and access to information concerning
the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or omission, and any other
equitable considerations appropriate under the circumstances. In no event shall the liability of a Holder exceed the net proceeds from
the offering received by such Holder.

 

    7

     

    

 

(e) Unless
otherwise superseded by an underwriting agreement entered into in connection with an underwritten public offering, the obligations of
the Company and Holders under this Section 4 shall survive the completion of any offering of Registrable Securities in a registration
under this Section 4.

 

4.8 Obligations
of the Company. Whenever required under this Section 4 to effect the registration of any Registrable Securities, the Company shall,
as expeditiously as possible:

 

(a) prepare
and file with the SEC a registration statement with respect to such Registrable Securities and use its best efforts to cause such registration
statement to become effective, and, upon the request of the holders of a majority of the Registrable Securities registered thereunder,
keep such registration statement effective for a period of up to nine (9) months or, if sooner, until the distribution contemplated in
the Registration Statement has been completed; provided, however, that such nine (9) month period shall be extended for
a period of time equal to the period the Holder refrains, at the request of an underwriter of Common Stock (or other securities) of the
Company, from selling any securities included in such registration.

 

(b) prepare
and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all
Registrable Securities covered by such registration statement.

 

(c) furnish
to the Holders such numbers of copies of a prospectus, including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities
owned by them.

 

(d) register
and qualify the Registrable Securities covered by such registration statement under such other securities or “blue sky” laws
of such jurisdictions as shall be reasonably requested by the Holders; provided, that in no event shall the Company be required
to qualify to do business in any state or other jurisdiction or to take any action which would subject it to general or unlimited service
of process in any jurisdiction where it is not now so subject.

 

(e) in
the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary
form, with the managing underwriter of such offering. Each Holder participating in such underwriting shall also enter into and perform
its obligations under such an agreement.

 

(f) notify
each holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required
to be delivered under the Act of the happening of any event as a result of which the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the circumstances then existing, and as promptly as possible
thereafter the Company shall promptly prepare and furnish to such Holder a reasonable number of copies of a supplement to or an amendment
of such prospectus as may be necessary so that, as thereafter delivered to the purchasers of such shares, such prospectus will not include
an untrue statement of material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

 

(g) cause
all Registrable Securities registered pursuant hereunder to be listed on each securities exchange on which similar securities issued
by the Company are then listed.

 

(h) provide
a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable
Securities, in each case not later than the effective date of such registration.

 

(i) furnish,
at the request of any Holder requesting registration of Registrable Securities pursuant to this Section 4, on the date that such Registrable
Securities are delivered to the underwriters for sale in connection with a registration pursuant to this Section 3, if such securities
are being sold through underwriters, or, if such securities are not being sold through underwriters, on the date that the registration
statement with respect to such securities becomes effective, (i) an opinion, dated such date, of the counsel representing the Company
for the purposes of such registration, in form and substance as is customarily given to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and to the Holders requesting registration of Registrable Securities and (ii) a letter dated such
date, from the independent certified public accountants of the Company, in form and substance as is customarily given by independent
certified public accountants to underwriters in an underwritten public offering, addressed to the underwriters, if any, and to the Holders
requesting registration of Registrable Securities.

 

    8

     

    

 

(j) promptly
make available for inspection by (i) the selling Holders, (ii) any underwriter participating in any disposition pursuant to such registration
statement, and (iii) any attorney or accountant or other agent retained by any such underwriter or selected by the selling Holders; all
financial and other records, pertinent corporate documents, and properties of the Company, and cause the Company’s officers, directors,
employees, and independent accountants to supply all information reasonably requested by any such seller, underwriter, attorney, accountant,
or agent in connection with any such registration statement.

 

(k) notify
each selling Holder, promptly after the Company receives notice thereof, of the time when such registration statement has been declared
effective or a supplement to any prospectus forming a part of such registration statement has been filed.

 

(l) after
such registration statement becomes effective, notify each selling Holder of any request by the SEC that the Company amend or supplement
such registration statement or prospectus.

 

4.9 Assignment
of Registration Rights. Any of the Holders may assign its rights to cause the Company to register Shares pursuant to this Section
4 to a transferee of all or any part of its Registrable Securities, provided (i) such transferee acquires of the Registrable Securities
of such Holder; (ii) that the transferee is a subsidiary, parent, affiliate, general partner, limited partner, retired partner, member
or retired member of a Holder, or (iii) the transferee is a Holder’s immediate family member or trust for the benefit of an individual
Holder or one or more of such Holder’s immediate family members, and (b) such transfer is otherwise effected in accordance with
applicable securities laws. The transferor shall, within twenty (20) days after such transfer, furnish the Company with written notice
of the name and address of such transferee and the securities with respect to which such registration rights are being assigned, and
the transferee’s written agreement to be bound by this Section 4.

 

4.10 Lock-Up.
In any registration of the Company’s shares each of the Holders agrees that any sales of securities held by such Holder may be
subject to a “lock-up” period restricting such sales, and all Holders and their transferees will agree to abide by such customary
“lock-up” period of up to one hundred and eighty (180) days in connection with the IPO, or, if required by such underwriter
in connection with the IPO, such longer period of time as is necessary to enable such underwriter to issue a research report or make
a public appearance that relates to an earnings release or announcement by the Company within fifteen (15) days before or after the date
that is one hundred eighty (180) days after the effective date of the registration statement relating to such offering, but in any event
not to exceed two hundred ten (210) days following the effective date of the registration statement relating to such offering (the applicable
period, the “Stand-Off Period”), during which period the Holders agree that they will not, without the prior written
consent of the managing underwriter (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right, or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly,
any shares of Common Stock or any securities convertible into or exercisable or exchangeable for Common Stock (whether such shares or
any such securities are then owned or are thereafter acquired) or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of the Common Stock, whether any such transaction described
in clause (i) or (ii) above is to be settled by delivery of Common Stock or other securities, in cash, or otherwise. The foregoing provisions
of this Section 4.10 shall apply only to the IPO, shall not apply to the sale of any shares to an underwriter pursuant to an underwriting
agreement and shall be applicable to the Holders only if all officers, directors, and stockholders individually owning more that one
percent (1%) of the Company’s outstanding Common Stock are subject to substantially similar restrictions. The underwriters in connection
with the IPO are intended third party beneficiaries of this Section 4.10 and shall have the right, power, and authority to enforce the
provisions hereof as though they were a party hereto. The Holders further agree to execute such agreements as may be reasonably requested
by the underwriters in the IPO that are consistent with this Section 4.10 or that are necessary to give further effect thereto. The obligations
described in this Section 4.10 shall not apply to a registration relating solely to employee benefit plans on Form S-l or Form S-8 or
similar forms that may be promulgated in the future, or a registration relating solely to a transaction on Form S-4 or similar forms
that may be promulgated in the future. The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or
other securities) subject to the foregoing restriction until the end of Stand-Off Period. The Holders agree to execute a market standoff
agreement with said underwriters in customary form consistent with the provisions of this Section 3.10.

 

    9

     

    

 

4.11 Public
Information. At any time and from time to time after the earlier of the close of business on such date as (a) a registration statement
filed by the Company under the Securities Act becomes effective, (b) the Company registers a class of securities under Section 12 of
the United States Securities Exchange Act of 1934, as amended, or any federal statute or code which is a successor thereto (the “Exchange
Act”), or (c) the Company issues an offering circular meeting the requirements of Regulation A under the Securities Act, the
Company shall (i) undertake to make publicly available and available to the Preferred Shareholders pursuant to Rule 144, such information
as is necessary to enable the Preferred Shareholders to make sales of Registrable Securities pursuant to that Rule. The Company shall
comply with the current public information requirements of Rule 144 and shall furnish thereafter to any Preferred Shareholder, upon request,
a written statement executed by the Company as to the steps it has taken to so comply, (ii) use best efforts to file with the SEC in
a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after
the Company has become subject to such reporting requirements) and (iii) furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (x) a written statement by the Company that it has complied with the reporting requirements of Rule
144 (at any time after ninety (90) days after the effective date of the registration statement filed by the Company for the IPO), the
Securities Act, and the Exchange Act (at any time after the Company has become subject to such reporting requirements), or that it qualifies
as a registrant whose securities may be resold pursuant to Form S-3 (at any time after the Company so qualifies); (y) a copy of the most
recent annual or quarterly report of the Company and such other reports and documents so filed by the Company; and (z) such other information
as may be reasonably requested in availing any Holder of any rule or regulation of the SEC that permits the selling of any such securities
without registration (at any time after the Company has become subject to the reporting requirements under the Exchange Act) or pursuant
to such Form S-3 (at any time after the Company so qualifies to use such form).

 

4.12 Grant
of Additional Registration Rights. The Company may not grant additional demand registration rights, and any incidental or other registration
rights senior to or on parity with the Holders, to any party without the prior written consent of the holders of at least a majority
of the Registrable Securities.

 

4.13 Foreign
Offerings. The provisions and intent of this Section 4 shall apply, mutatis mutandis, to any registration of the securities
of the Company outside of the United States, to the extent applicable.

 

5. Negative
Covenants. Until a Qualified IPO, the Company shall not, either directly or indirectly, without the prior consent of the holders
of at least majority of the issued and outstanding Preferred Stock, take any of the actions listed in Article C(3)(b) of the existing
Certificate of Incorporation as currently in effect.

 

6. Insurance.
The Company represents that it has obtained from financially sound and reputable insurers a Directors and Officers insurance policy in
an amount of at least US$ 5,000,000 (the “Insurance Policy”) which is in full force and effect as of the date hereof.
Until such time as the Board determines that the Insurance Policy should be discontinued, the Company shall use commercially reasonable
efforts to maintain in full force and effect the Insurance Policy. The Insurance Policy shall not be cancelable by the Company without
prior approval of the Board and the Representative.

 

    10

     

    

 

7. Right
of First Refusal. Prior to a Qualified IPO, any Transfer (as defined below) of any capital stock of the Company, of any class or
series, now owned or hereafter acquired, whether pursuant to the exercise of an option, warrant or otherwise (the “Securities”)
by any Shareholder (other than the repurchase by the Company of Common Stock from the Founder pursuant to that certain Stock Repurchase
Agreement made and entered into effective as of February 24, 2015, by and between the Company and the Founder) shall be subject to the
following:

 

(a) a
Shareholder of the Company proposes to sell, assign, transfer, pledge, hypothecate, mortgage or dispose of, by gift or otherwise, or
in any way encumber (“Transfer”) any Securities it holds of the Company to one or more third parties pursuant to an
understanding with such third parties, then such Shareholder (the “Offering Stockholder”) shall give each Major Stockholder,
a written notice of the Offering Stockholder’s intention to make the Transfer (the “Transfer Notice”), which
Transfer Notice shall include (i) a description of the securities to be transferred (“Offered Shares”), (ii) the identity
of the prospective transferee(s) and (iii) the consideration and the material terms and conditions upon which the proposed Transfer is
to be made. The Transfer Notice shall certify that the Offering Stockholder has received an offer from the prospective transferee(s)
and in good faith believes a binding agreement for the Transfer is obtainable on the terms set forth in the Transfer Notice. The Transfer
Notice shall also include a copy of any written proposal, term sheet or letter of intent or other agreement relating to the proposed
Transfer.

 

(b) The
Major Stockholders shall have an option for a period of twenty (20) days from the Major Stockholder’s receipt of the Transfer Notice
from the Offering Stockholder to elect to purchase their respective pro rata amount of the Offered Shares at the same price and subject
to the same material terms and conditions as described in the Transfer Notice. Each Major Stockholder may exercise such purchase option
and, thereby, purchase all or any portion of his, her or its pro rata share (with any re-allotments as provided below) of the Offered
Shares, by notifying the Offering Stockholder and the Company in writing, before expiration of the twenty (20) day period as to the number
of such shares which he, she or it wishes to purchase (including any re-allotment). Each Major Stockholder’s pro rata share of
the Offered Shares shall be a fraction of the Offered Shares, of which the number of shares of Common Stock (including shares of Common
Stock issuable upon conversion of Preferred Stock owned by such Major Stockholder on the date of the Transfer Notice shall be the numerator
and the total number of shares of Common Stock (including shares of Common Stock issuable upon conversion of Preferred Stock) held by
all Major Stockholders, excluding the holders of Non-Voting Common Stock, on the date of the Transfer Notice shall be the denominator
(without the offering Stockholder). Each Major Stockholder shall have a right of re-allotment such that, if any other Major Stockholder
fails to exercise the right to purchase its full pro rata share of the Offered Shares, the other participating Major Stockholders may
exercise an additional right to purchase, on a pro rata basis, the Offered Shares not previously purchased. Each Major Stockholder shall
be entitled to apportion Offered Shares to be purchased among its partners, members, and Affiliates, provided that such Major Stockholder
notifies the Offering Stockholder of such allocation. If a Major Stockholder gives the Offering Stockholder notice that it desires to
purchase its pro rata share of the Offered Shares and, as the case may be, its re-allotment, then payment for the Offered Shares shall
be by check or wire transfer, against delivery of the Offered Shares to be purchased at a place agreed upon between the parties and at
the time of the scheduled closing therefor, which shall be no later than forty-five (45) days after receipt of the Transfer Notice, unless
the Transfer Notice contemplated a later closing with the prospective third party transferee(s) or unless the value of the purchase price
has not yet been established pursuant to Section 7(c).

 

(c) Should
the purchase price specified in the Transfer Notice be payable in property other than cash or evidences of indebtedness, the Major Stockholders
shall have the right to pay the purchase price in the form of cash equal in amount to the value of such property. If the Offering Stockholder
and the Major Stockholders cannot agree on such cash value within ten

(10)
days after the Company’s receipt of the Transfer Notice, the valuation shall be made by an appraiser of recognized standing selected
by the Offering Stockholder and the Major Stockholders or, if they cannot agree on an appraiser within twenty (20) days after the Major
Stockholders’ receipt of the Transfer Notice, each shall select an appraiser of recognized standing and the two appraisers shall
designate a third appraiser of recognized standing, whose appraisal shall be determinative of such value. The cost of such appraisal
shall be shared equally by the Offering Stockholder and the Holders, with the half of the cost borne by the Holders borne pro rata by
each based on the number of shares such parties were interested in purchasing pursuant to this Section 7. If the time for the closing
of the Company’s purchase or the Holders’ purchase has expired but for the determination of the value of the purchase price
offered by the prospective transferee(s), then such closing shall be held on or prior to the fifth business day after such valuation
shall have been made pursuant to this subsection.

 

(d) Legend.
Each certificate representing Securities of the Shareholders shall be endorsed with the following legend:

 

    11

     

    

 

THE
SALE OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN AMENDED AND RESTATED
STOCKHOLDERS AGREEMENT BY AND AMONG THE COMPANY, THE HOLDER HEREOF AND OTHER STOCKHOLDERS OF THE COMPANY, AS AMENDED FROM TIME TO TIME.
COPIES OF SUCH AGREEMENT MAY BE OBTAINED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY.

 

(e)
The above legend shall be removed upon termination of this Agreement.

 

(f) Without
derogating or limiting the foregoing, the Right of First Refusal as set forth in this Section 7 shall not apply to any Transfer of Non-Voting
Common Stock. For the sake of clarity, holders of Non-Voting Common Stock shall only be able to Transfer their respective shares of Non-Voting
Common Stock as follows: (i) to the Company, or (ii) by any other means as approved by the Board of Directors of the Corporation.

 

8.
Co-Sale; Transfers of Stock.

 

(a) Unless
the rights of first refusal set forth in Section 7 above are exercised in full by the Major Stockholders, each of the Major Stockholders
shall have the right to participate in any sale of Securities by any Shareholder other than the Non-Voting Common Holders (the “Selling
Stockholder”) to any third party (the “Third Party”) pursuant to the provisions hereof and on the specified
terms and conditions of the Transfer Notice. Each of the Major Stockholders shall be entitled, upon written notice to the Selling Stockholder
within forty-five (45) days after receipt of the Transfer Notice (a “Participation Notice”), to sell to the Third
Party up to that number of the shares in the Company owned by such Major Stockholder (the “Equity Shares”) determined
by multiplying the total number of Offered Shares times a fraction the numerator of which is the number of shares of Common Stock owned
by such Major Stockholder (assuming for purposes of this section, the conversion of all Preferred Stock) and the denominator of which
is the total number of shares of Common Stock (assuming, for purposes of this section, the conversion of all Preferred Stock) held by
all Major Stockholders, and such Selling Stockholder. A Participation Notice shall indicate, subject to the terms of this Section 8,
the number of Shares that such Preferred Shareholder intends to transfer to the Third Party. To the extent one or more of the Major Stockholders
exercises such right in accordance with the terms and conditions set forth below, the number of securities that the Selling Stockholder
may sell pursuant to such Offer shall be correspondingly reduced. At the closing of the sale of securities to the Third Party, the Selling
Stockholder shall transfer his shares to the Third Party only if the Third Party concurrently therewith purchases, on the same terms
and conditions specified in the Offer, all of the Shares as to which Participation Notices have been delivered. The restrictions set
forth in this Section 8 shall terminate upon the closing of a Qualified IPO (as such term is defined in the Amended Certificate).

 

(b) To
the extent that the Major Stockholders have not exercised their rights to purchase the Offered Shares in full within the time periods
specified in Section 7 and the Major Stockholders have not exercised their rights to participate in the sale of the Offered Shares within
the time periods specified in Section 8(a), the Offering Stockholder shall have a period of ninety (90) days from the expiration of such
rights in which to sell the Offered Shares upon terms and conditions (including the purchase price) no more favorable than those specified
in the Transfer Notice to the third-party transferee(s) identified in the Transfer Notice. In the event the Offering Stockholder does
not consummate the sale or disposition of the Offered Shares within the ninety (90) day period from the expiration of these rights, the
first refusal rights and co-sale rights shall continue to be applicable to any subsequent disposition of the Offered Shares by the Offering
Stockholder until such right lapses in accordance with the terms of this Agreement. Furthermore, the exercise or non-exercise of the
rights of the Major Stockholders to purchase securities from an Offering Stockholder or participate in sales of securities by a Offering
Stockholder shall not adversely affect their rights to make subsequent purchases from the Offering Stockholder of securities or subsequently
participate in sales of securities by the Offering Stockholders.

 

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(c) Notwithstanding
the provisions of Sections 7 and 8(a) of this Agreement, a Shareholder may Transfer, with or without consideration, securities to (i)
the Company at cost pursuant to the terms of an agreement approved by the Board of Directors of the Company providing for repurchase
of shares upon certain events including termination of employment; (ii) any spouse, domestic partner or member of such Shareholder’s
immediate family, or to a custodian, trustee (including a trustee of a voting trust), executor, or other fiduciary for the account of
such Shareholder’s spouse, domestic partner or members of the such Shareholder’s immediate family, or to a trust for the
Shareholder’s own self, or a charitable remainder trust; (iii) the current equity owner(s) of any shareholder that is a corporation,
partnership limited liability company, or other entity or affiliate, trust or liquidating trust of such entity; (iv) an Affiliate of
such Shareholder, (v) a corporation, partnership, limited liability company or other entity, all of the shares, partnership interests,
membership or other ownership interests of which are owned by such shareholder and/or its Affiliates or (vi) solely with respect to Co-Sale
rights an amount of shares which reflect less than 50% of the Company’s shares owned by such Offering Stockholder at that time
(the right of first refusal shall apply on any sale of shares) or

(vii)
an Affiliate.

 

(d) In
addition to any limitations set forth in the provisions of Sections 7 of this Agreement, transfer of shares of Non-Voting Common Stock
by a Non-Voting Common Holder shall be subject to the prior written consent of the Board.

 

9. Drag-Along.
The parties hereto agree to such “drag along” provisions as is set forth in ARTICLE ELEVENTH of the Amended Certificate which
is incorporated by reference to this Agreement.

 

10. Affirmative
Covenants. The parties agree that, in the event at any time the number of authorized shares of Common Stock of the Company shall
be insufficient to permit the conversion of all Preferred Stock into Common Stock in accordance with the conversion provisions of the
Company’s Certificate of Incorporation, as amended and restated from time to time, the Preferred Shareholders and the Common Holders
shall vote in favor of such increase in the Company’s authorized capital stock as shall be necessary to permit such conversion.
Furthermore, the Preferred Shareholders and the Common Holders agree to vote their shares and do all such other acts as are necessary
to give full force and effect to this Agreement.

 

11.
Board of Directors.

 

11.1 Election
of Directors. The Board shall be composed of up to five (5) directors who shall be elected in the manner set forth in this Section
11.

 

11.2 The
Founder, regardless of his holdings of Common Stock or position with the Company, shall be entitled to designate the person to fill the
directorship elected by the Common Stock as a separate class (the “Founder Director”). The initial Founder Director
shall be the Founder. Notwithstanding the foregoing, in the event that the Founder sells or transfers (other than to Affiliates) more
than 50% of his holdings in the Company as of the date of this Agreement, then the Founder shall no longer have the right to appoint
the Founder Director, and the Preferred Directors at the time of such sale or transfer, by a vote of majority, shall be entitled to appoint
the Founder Director.

 

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11.3 The
holders of the majority of the Company’s Series A Preferred Shares, voting as a separate class (or by written consent), shall be
entitled to elect three directors (the “Preferred Directors”, each a “Preferred Director”). Following
the consummation of an additional round of investment in the Company, which was led by a party who is not a Preferred Stockholder, the
number of the Preferred Directors shall be decreased to two Preferred Directors one of them shall be the Representative. In the event
that the holders of Preferred A Shares sell or transfer (other than to Affiliates) more than 50% of their holdings (in the aggregate)
in the Company, then the holders of Preferred A Shares shall have the right to appoint only one (1) Preferred Director.

 

11.4 The
holders of the majority of the Company’s Series B Preferred Shares, voting as a separate class (or by written consent), shall be
entitled to elect one (1) director (the “Investor Director”). The initial Investor Director shall be Israel Niv. In
the event the holders of Preferred B Shares as at the Closing (as defined in the Purchase Agreement) sell or transfer (other than to
affiliates) more than 50% of their holdings (in the aggregate) in the Company, then the holders of Preferred B Shares shall not be entitled
to appoint an Investor Director.

 

11.5 The
Board may agree to elect an additional director who is either an industry expert or a director with past experience as CEO of companies
in the hi-tech field.

 

11.6 Removal
of Board Members. Each party to this Agreement also agrees to vote, or cause to be voted, all Shares owned by such party, or over
which such party has voting control, from time to time and at all times, in whatever manner as shall be necessary to ensure that:

 

(a) no
director elected pursuant to Sections 11.2 and 11.3 of this Agreement may be removed from office unless (i) such removal is directed
or approved by the affirmative vote of the persons or entities entitled under Sections 11.2 or 11.3, respectively, to designate that
director or (ii) the persons or entities originally entitled to designate or approve such director pursuant to Sections 11.2 through
11.4, as applicable, are no longer so entitled to designate or approve such director; and

 

(b) any
vacancies created by the resignation, removal or death of a director elected pursuant to Sections 11.2 and 11.3 shall be filled pursuant
to the provisions of this Section 11, provided, however, that the holders of any series of Preferred Stock shall not be
obligated to fill any vacancy entitled to be filed by such holder in the event they choose not to do so, and any such failure to fill
a vacancy shall not be deemed to be a breach of this Agreement or any other duty as may then exist.

 

11.7 Voting.
Each party to this Agreement agrees that it shall vote, or cause to be voted, all shares of voting stock of the Company it holds, subsequently
acquires or otherwise has the power to vote (including, without limitation, any Common Stock obtained upon the conversion of the Preferred
Stock and all Shares acquired after the date of this Agreement) to ensure election of the Company’s directors in accordance with
Sections 11.2 through Section 11.4 at any annual or special meeting of stockholders at which an election of directors is held or pursuant
to any written consent of the stockholders.

 

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Each
party to this Agreement agrees to execute any written consents required to perform the obligations of this Agreement, and the Company
agrees at the request of any party entitled to designate directors to call a special meeting of stockholders for the purpose of electing
directors.

 

11.8 Chairperson.
The Board shall elect one director as chairman of the Board. The Chairperson shall not have a casting vote.

 

11.9 Committees.
The by-laws shall provide that any committee established by the Board shall include at least one of the Preferred Directors.

 

11.10 Subsidiary
Boards. The Company shall take all actions necessary to provide that the structure of the Board as set forth in Sections 11.1 through
11.5 hereof shall be implemented for any subsidiary of the Company.

 

11.11 Location
of Board meetings. The location of the meetings of the Board shall be coordinated and acceptable to the Preferred Directors.

 

11.12 Reimbursement
of Expenses. The Company shall reimburse all non-management members of the Board (not including any observers to the board) for reasonable
expenses incurred in connection with their service on the Board, including the cost of air travel to and from meetings of the Board,
provided such expenses were approved in advance by the Company.

 

11.13 No
Liability for Election of Recommended Directors. No party, nor any Affiliate of any such party, shall have any liability as a result
of designating a person for election as a director for any act or omission by such designated person in his or her capacity as a director
of the Company, nor shall any party have any liability as a result of voting for any such designee in accordance with the provisions
of this Agreement.

 

11.14 Specific
Enforcement. Each party acknowledges and agrees that each party hereto will be irreparably damaged in the event any of the provisions
of this Section 11 are not performed by the parties in accordance with their specific terms or are otherwise breached. Accordingly, it
is agreed that each of the Company and the Shareholders shall be entitled to an injunction to prevent breaches of this Section 11, and
to specific enforcement of this Section 11 and its terms and provisions in any action instituted in any court of the United States or
any state having subject matter jurisdiction.

 

12.
Management Fees and Expenses.

 

12.1 Commencing
at February 15, 2015, the Company will pay the Representative a monthly management fee of $5,000 plus VAT. Such engagement shall continue
until the later of

(i)
February 15, 2018 and (ii) such time as the Representative is no longer a director of the Company; however, shall earlier terminate in
the event that the Representative resigns from its office as a director of the Company. For the avoidance of any doubt, termination of
Representative’s office as a director due to change in number of directors appointed by the Holders of Preferred Stock or due to
election by the holders of Preferred Stock of a different director, shall not be deemed as resignation of the Representative.

 

    15

     

    

 

12.2 The
Company will finance the Preferred Shareholders’ legal counsel of the choice of the Representative for every subsequent round of
investment greater than $1,000,000 or a Liquidation Event, not exceeding $5,000 plus VAT per each such round or event.

 

13. Termination.
This Agreement shall terminate immediately following the earlier to occur of the closing of a Qualified IPO, the consummation of a Transaction
or with the written consent of the Company and Preferred Shareholders holding a majority of the outstanding Preferred Stock, and also
by the Founder, solely in the event that such termination does not take place in conjunction with signing a new agreement in which the
rights and privileges of Founder (and Affiliates thereof) designated herein are not adversely affected or derogated in a manner that
is disproportionate to the rights and privileges of the Preferred Stockholders. For the purposes of this Section, a “Transaction”
shall mean the consolidation, merger or reorganization of the Company with or into, or a sale of all or substantially all of the Company’s
assets, or all or substantially all of the Company’s issued and outstanding share capital, or the license of all or substantially
all of the Company’s intellectual property rights to, any other company, or any other entity or person other than an entity controlling,
controlled by or under common control with, the Company, excluding a transaction in which shareholders of the Company prior to the transaction
maintain voting control of the resulting entity after the transaction.

 

14.
Miscellaneous

 

14.1 Further
Assurances. Each of the parties hereto shall perform such further acts and execute such further documents as may reasonably be necessary
to carry out and give full effect to the provisions of this Agreement and the intentions of the parties as reflected thereby.

 

14.2 Governing
Law. This Agreement shall be governed by the laws of the State of Delaware excluding that body of law pertaining to conflict of law.
Each of the parties hereby submits irrevocably to the exclusive jurisdiction of the competent courts located within the City of Tel-Aviv,
Israel.

 

14.3 Remedies
Cumulative. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

14.4 Successors
and Assigns; Assignment. Except as otherwise expressly limited herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, assigns, heirs, executors, and administrators of the parties hereto; provided, however, that
in the event of any transfer or assignment (i) the Company must receive written notice of said transfer or assignment, stating the name
and address of said transferee or assignee and identifying the securities with respect to which such rights are being assigned, (ii)
the transferee or assignee of such rights must not be a person deemed by the Board, in its reasonable judgment, to be a current competitor
of the Company, provided, however, that if (A) such transferee or assignee is a Venture Capital Firm, or (B) if the transferor
is a general or limited partnership, and such partnership assigns or transfers to its partners or to affiliated partnerships managed
by the same management company or managing general partner or by an entity which controls, is controlled by, or is under common control
with, such management company or managing general partner, it shall not be deemed a current competitor pursuant to this Section 14.4
(for purposes of this Section 14.4, a “Venture Capital Firm” shall be any entity formed for the purpose of acquiring
or holding, for investment, equity interests in private companies or acquiring and holding interests in one or more vehicles that hold
such equity interests) and (iii) such transferee or assignee must agree in writing to be bound by the terms and conditions of this Agreement.
Notwithstanding the limitation set forth in the foregoing sentence respecting the minimum number of shares which must be transferred,
any Preferred Shareholder (a) which is a partnership or limited liability company may transfer such Preferred Shareholder’s board
appointment rights to an Affiliate of such Holder as well as such Preferred Shareholder’s constituent partners or members, as the
case may be, without restriction as to the number or percentage of shares acquired by any such constituent partner or member and (b)
may transfer such Preferred Shareholder’s board appointment rights to an immediate family member or a trust for the benefit of
the Holder. Any transfer, assignment or other disposition of securities not made in compliance with the requirements of this Agreement
shall be null and void ab initio, shall not be recorded on the books of the Company or its transfer agent and shall not be recognized
by the Company.

 

    16

     

    

 

14.5 Entire
Agreement; Amendment and Waiver. This Agreement and the Schedules hereto constitute the full and entire understanding and agreement
between the parties with regard to the subject matters hereof and thereof. Any other written or oral agreement among the parties relative
to the specific subject matter hereof is amended and restated by this Agreement. The Prior Agreement, as amended and restated by this
Agreement, hereby terminates in full the Previous IRA and Previous Voting Agreement, and all rights and claims relating thereto of all
parties thereto are hereby irrevocably waived and released, and the terms therein are hereby rendered irrevocably null and void, and
of no further force or effect. Any term of this Agreement may be amended and the observance of any term hereof may be waived (either
prospectively or retroactively and either generally or in a particular instance) only with the written consent of the Company, Preferred
Shareholders holding a majority of the outstanding Preferred Stock, and also of the Founder, solely in the event that such amendment
adversely affects or derogates from the rights and privileges of Founder (and Affiliates thereof) designated herein in a manner that
is disproportionate to the amendment made to the rights and privileges of the Preferred Stockholders. Notwithstanding the foregoing,
if the Company issues additional shares of Series Preferred Stock after the date hereof, any purchaser of such shares of Preferred Stock
may become a party to this Agreement by executing and delivering an additional counterpart signature page to this Agreement, and thereafter
shall be deemed a “Preferred Shareholder” for all purposes hereunder. No action or consent by the Preferred Shareholders
shall be required for such joinder to this Agreement by such additional holder of Preferred Stock, so long as such additional holder
has agreed in writing to be bound by all of the obligations as a “Preferred Shareholder” hereunder.

 

    17

     

    

 

14.6 Notices,
etc. All notices and other communications required or permitted hereunder to be given to a party to this Agreement shall be in writing
and shall be telecopied or mailed by registered or certified mail, postage prepaid, or prepaid air courier, or otherwise delivered by
hand, internationally recognized overnight courier or by messenger, addressed to such party’s address as set forth below or at
such other address as the party shall have furnished to each other party in writing in accordance with this provision:

 

	 	if to the Non-Voting Common Holders:	To the maximum
    extent allowed under applicable law, the following shall be appointed representatives of the Non-Voting Common Stock for the purpose
    hereof, and delivery of notice to such representative shall be deemed a delivery of notice to the holders of Non-Voting Common Stock:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Otherwise, to the addresses set forth
    in Schedule A
	 	 	 
	 	if to the Preferred Shareholders:	to the addresses set forth in Schedule
    B or Schedule C, respectively
	 	 	
	 	if to the Founder:	c/o Actelis Networks,

    Inc.47800 Westinghouse Drive

    Freemont, CA 94539
	 	 	 
	 	if to the Representative:	to the address set forth in Schedule B.
	 	 	 
	 	if to the Company:	Actelis Networks, Inc.

    47800 Westinghouse Drive

    Fremont, CA 94539 Attn: Tuvia Barlev, CEO
	 	 	 
	 	 	with a copy (which shall not constitute
    notice) to:
	 	 	 
	 	 	Pearl Cohen Zedek Latzer Baratz LLP
	 	 	50 Congress Street, Suite 1040
	 	 	Boston, MA 02109
	 	 	Attn: Oded Kadosh, Esq.

 

or
such other address with respect to a party as such party shall notify each other party in writing as above provided. Any notice sent
in accordance with this Section 14.6 shall be effective (i) if mailed, seven (7) business days after mailing, (ii) if by air courier,
two (2) business days after deliver to the courier service, (iii) if sent by internationally recognized overnight courier, one business
day after deposit with such courier if sender and recipient are in the same country, otherwise notice shall be effective three (3) business
days after deposit with such courier, (iv) if sent via facsimile or electronic mail, upon transmission and electronic confirmation of
receipt or if transmitted and received on a non-business day, on the first business day following transmission and electronic confirmation
of receipt, and, (v) if sent by messenger, upon delivery (provided, however, that any notice of change of address shall only be valid
upon actual receipt by the party to be charged with knowledge of same).

 

    18

     

    

 

14.7 Delays
or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default under
this Agreement, shall impair any such right, power, or remedy of such non-breaching or non-defaulting party nor shall it be deemed a
waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent, or approval of any kind or character
on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions
of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies,
either under this Agreement or by law or otherwise afforded to any of the parties, shall be cumulative and not alternative.

 

14.8 Severability.
If any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such provision
shall be excluded from this Agreement and the remainder of this Agreement shall be interpreted as if such provision were so excluded
and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be interpreted so as
to give effect, to the greatest extent consistent with and permitted by applicable law, to the meaning and intention of the excluded
provision as determined by such court of competent jurisdiction.

 

14.9 Counterparts.
This Agreement may be executed and delivered by facsimile signature and in any number of counterparts, each of which shall be deemed
an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and
the same instrument.

 

14.10 Aggregation
of Stock. All Preferred Stock held or acquired (or Common Stock issuable upon conversion thereof) by affiliated entities shall be
aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

14.11 Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement.

 

[Remainder
of page intentionally left blank.]

 

    19

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

STOCKHOLDERS
AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

THE COMPANY:

 

ACTELIS NETWORKS,
INC.

 

	By:	/s/ Tuvia Barlev	 
	Name:  	Tuvia Barlev	 
	Date:	Chief Executive Officer	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

COMMON
HOLDERS

 

	TUVIA BARLEV	 
	 	 
	/s/ TUVIA
    BARLEV	 
	 	 
	RAM VROMEN	 
	 	 
	/s/ RAM
    VROMEN	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	RAM VROMEN	 
	 	 
	/s/ RAM
    VROMEN	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	GIGI LEVY-WEISS	 
	 	 
	/s/ GIGI
    LEVY-WEISS	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	KEDMA CAPITAL S.H.E. LTD.	 
	 	 	 
	By:	/s/ Gilead Halevy	 
	Name: 	Gilead Halevy	 
	Title:		 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	YARIV GILAT	 
	 	 
	/s/ YARIV
    GILAT	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

THE RODA
GROUP VENTURE DEVELOPMENT COMPANY, LLC

 

	By:	/s/
    ROGER A. STRAUCH	 
	Name: 	ROGER A. STRAUCH	 
	Title:	CHAIRMAN	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

Advanced
Circuit Engineers, LLC

 

	By:	/s/
    Rajesh Jain 	 
	Name: 	Rajesh Jain	 
	Title:	Owner/Partner	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

Amit J. Ronen
and Talya Ronen as trustees of the Ronen Family Trust U/T/A/D 12/21/05

 

	By:	/s/
    Amit J. Ronen	 
	Name: 	Amit J. Ronen	 
	Title:	Trustee	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	 	 	 
	By:	/s/
    Tameyasu Anayama	 
	Name: 	Tameyasu Anayama	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	ARIK STEINBERG	 
	 	 
	/s/ ARIK STEINBERG	 

 

     

     

    

 

IN
WITNESS WHEREOF, the undersigned has executed this Notice, Acknowledgment and Waiver as of the date below.

 

	Dated: 23 Jan 2016	

	 	 
	 	 
	 	 
	 	E-mail:	guy@excalibercapital.com
	 	Facsimile:	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

		 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	CARMEL VERNIA	 
	 	 
	/s/ CARMEL
    VERNIA	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN WITNESS
WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	JOSEPH PERL AND JUDITH PERL	 
	 	 
	/s/ JOSEPH
    PERL AND JUDITH PERL	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	KETAN. J. SHAH	 
	 	 	 
	By:	/s/ KETAN.
    J. SHAH	 
	Name: 	KETAN. J. SHAH	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	 	 
	 	 	 
	By:	The NIV Family
    Trust January 18, 2002	 
	Name: 	ISRAEL NIV	 
	Title:	Trustee	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	PALADIN LTD.	 
	 	 	 
	By:	/s/ ohad
    levkovitz	 
	Name: 	ohad
    levkovitz	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	BAUHINIA INVESTMENTS LTD.	 
	 	 	
	By:	/s/ Guy
    swersky	 
	Name: 	Guy swersky	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	RAMI LIPMAN	 
	 	 
	/s/ RAMI LIPMAN	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	 	 	 
	By:	/s/
    Roger Nicholson	 
	Name: 	Roger Nicholson	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

	SAURABH AGARWAL	 
	 	 	 
	By	/s/
    saurabh agarwal	 
	Name: 	Saurabh Agarwal	 
	Title:	 	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS 

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

The Beinglass
revocable trust, August 2000

 

	By:	/s/ Israel Beinglass	 
	Name: 	Israel Beinglass	 
	Title:	Trustee	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS 

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

THE
ISARD DUNIETZ 2006 TRUST, CREATED BY A DECLARATION OF TRUST DATED JULY 19, 2006, AS IT MAY BE AMENDED OR RESTATED FROM TIME TO TlME THEREAFTER

 

	By:	/s/
    Isard Dunietz	 
	Name: 	Isard Dunietz (or his successor) 	 
	Title:	Trustee	 

 

     

     

    

 

[SIGNATURE
PAGE TO ACTELIS NETWORKS

AMENDED AND RESTATED STOCKHOLDERS AGREEMENT]

 

IN
WITNESS WHEREOF the parties have signed this Amended and Restated Shareholders Agreement as of the
date first hereinabove set forth.

 

PREFERRED
SHAREHOLDERS

 

YEMINI
ASSET MANAGEMENT LLC

 

	By:	/s/
    Yemini Asset Management LLC	 
	Name: 	Yemini Asset Management LLC	 

 

 

     

     

    

 

SCHEDULE
A

 

The
Non-Voting Common Holders

 

	Name	Address
	 	 
	 	 

 

     

     

    

 

SCHEDULE
B

 

The
Preferred A Shareholders

 

	NAME	ADDRESS
	ATA
    Affiliates Fund I, L.P.	 
	ATA
    Affiliates Fund II, L.P.	 
	ATA
    Investment Fund I, L.P.	 
	ATA
    Investment Fund II, L.P.	 
	ATA
    Ventures I, L.P.	 
	ATA
    Ventures II, L.P.	 
	Yariv
    Gilat	9
    Hagolan Street

    Tel Aviv, 6971812 Israel
	Isard
    Dunietz (or his successor), as Trustee of the Isard Dunietz 2006 Trust, created by a Declaration of Trust dated July 19, 2006 as
    it may be amended or restated from time to time thereafter	 
	Rami
    Lipman	 
	Arik
    Steinberg	8
    Yiftach Street, Entrance B

    Ramat Hasharon 471082, Israel
	Yemini
    Asset Management LLC	 
	Joseph
    Perl and Judith Perl	 
	Zeev
    Bregman	Kfar
    Saba 3

    Tel Aviv 65147
	Carmel
    Vernia	36
    Benayahu Tel Aviv, Israel
	Bauhinia
    Investments Ltd.	c/o
    Excaliber Capital

    11 Menachem Begin Road

    Ramat Gan 52522, Israel
	The
    Niv Family Trust - January 18, 2002	27240
    Natoma Road 

    Los Altos Hills, CA 94022
	Alan
    Barkat	 
	Kedma
    Capital S.H.E. Ltd.	Azrieli
    Center, Round Tower

    132 Menachem Begin Blvd.,

    Tel Aviv 67021
	Ram
    Vromen	 
	Reinisch
    Investments & Holdings Ltd.	Excaliber
    Capital Ltd

    Attention – Jennifer Kessler

    11 Derech Menahem Begin, 11th floor

    Ramat Gan 5268104
	Paladin
    Ltd.	Excaliber
    Capital Ltd

    Attention – Jennifer Kessler

    11
    Derech Menahem Begin, 11th floor

    Ramat Gan 5268104

	The
    Schwartz Family Trust	 
	The Roda
    Group Venture

    Development
    Company, LLC
	918
    Parker Street, Suite A-14

    Berkley, CA 94710
	Gigi
    Levy-Weiss	 

 

     

     

    

 

SCHEDULE
C

 

The
Preferred B Shareholders

 

	NAME	ADDRESS
	Ram
    Vromen	6
    Reading Street

    Tel Aviv, 69022 Israel
	Yariv
    Gilat	9
    Hagolan Street

    Tel Aviv, 6971812 Israel
	Isard
    Dunietz (or his successor), as Trustee of the Isard Dunietz 2006 Trust, created by a Declaration of Trust dated July 19, 2006 as
    it may be amended or restated from time to time thereafter	 
	Rami
    Lipman	 
	Arik
    Steinberg	8
    Yiftach Street, Entrance B

    Ramat Hasharon 471082, Israel
	Yemini
    Asset Management LLC	 
	Carmel
    Vernia	36
    Benayahu 

    Tel Aviv, Israel
	Bauhinia
    Investments Ltd.	c/o
    Excaliber Capital 

    11 Menachem Begin Road

    Ramat Gan 52522, Israel
	The
    Niv Family Trust - January 18, 2002	27240
    Natoma Road

    Los Altos Hills, CA 94022
	Kedma
    Capital S.H.E. Ltd.	Azrieli
    Center, Round Tower

    132 Menachem Begin Blvd., 

    Tel Aviv 67021
	Reinisch
    Investments & Holdings Ltd.	Excaliber
    Capital Ltd

    Attention – Jennifer Kessler

    11 Derech Menahem Begin, 11th floor

    Ramat Gan 5268104
	Paladin
    Ltd.	Excaliber
    Capital Ltd

    Attention – Jennifer Kessler

    11 Derech Menahem Begin, 11th floor

    Ramat Gan 5268104
	Zeev
    Bregman	Kfar
    Saba 3

    Tel
    Aviv 65147

	Roger
    Nicholson	34742
    Williams Way 

    Union City, CA 94587
	Ronen
    Family Trust U/T/A/D 12/21/05	C/O
    Amit Ronen, Trustee

    1415 Todd Street 

    Mountain View, CA 94040
	Tameyasu
    Anayama	 
	The
    Beinglass Revocable Trust, August 2000	1330
    Elsona Ct

    Sunnyvale, CA 94087

	Saurabh
    Argwal	36928
    Montecito Drive

    Fremont, CA 94536

	Ketan
    J. Shah	10162
    Firwood Drive

    Cupertino, CA 95014

	Advanced
    Circuit Engineers, LLC	C/O
    Rajesh Jain 

    308 S. Abott Avenue

    Milpitas, CA 95035Exhibit
4.1

 

DESCRIPTION
OF REGISTRANT’S SECURITIES REGISTERED UNDER SECTION 12

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

The
following description sets forth certain material terms and provisions of the common stock of Vinco Ventures, Inc., a Nevada corporation
which are registered under Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
This description also summarizes relevant provisions of the Nevada Revised Statutes (“NRS”). The following description
is a summary and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, the relevant provisions
of the NRS, and to our Articles of Incorporation, as amended or amended and restated from time to time (collectively, the “Articles
of Incorporation”), and our Bylaws, as amended or amended and restated from time to time (the “Bylaws”),
which are filed as exhibits to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, of which this
Exhibit is a part, and are incorporated by reference herein. We encourage you to read the Company’s Articles of Incorporation and
the Bylaws, and the relevant provisions of the NRS for additional information. Unless the context requires otherwise, all references
to “we,” “us,” “our” and the “Company” in this Exhibit 4.1
refer solely to Vinco Ventures, Inc.

 

Authorized
and Outstanding Capital Stock

 

Our
authorized capital stock presently consists of 250,000,000 shares of common stock, par value $0.001 per share, and no shares of preferred
stock presently authorized. As of April 14, 2022, we had 188,052,593 shares of common stock outstanding and 0 shares of our preferred
stock issued and outstanding.

 

Common
Stock

 

Voting

 

Holders
of shares of the common stock are entitled to one vote for each share held of record on matters properly submitted to a vote of our stockholders.
Stockholders are not entitled to vote cumulatively for the election of directors.

 

Dividends

 

Subject
to the dividend rights of the holders of any outstanding series of preferred stock, holders of shares of common stock will be entitled
to receive ratably such dividends, if any, when, as, and if declared by our Board of Directors (“Board”) out of the
Company’s assets or funds legally available for such dividends or distributions.

 

Liquidation
and Distribution

 

In
the event of any liquidation, dissolution, or winding up of the Company’s affairs, holders of the common stock would be entitled
to share ratably in the Company’s assets that are legally available for distribution to its stockholders. If the Company has any
preferred stock outstanding at such time, holders of the preferred stock may be entitled to distribution preferences, liquidation preferences,
or both. In such case, the Company must pay the applicable distributions to the holders of its preferred stock before it may pay distributions
to the holders of common stock.

 

Conversion,
Redemption, and Preemptive Rights

 

Holders
of the common stock have no preemptive, subscription, redemption or conversion rights.

 

Sinking
Fund Provisions

 

There
are no sinking fund provisions applicable to the common stock.

 

Stock
Exchange Listing

 

Our
common stock is listed on the Nasdaq Capital Market under the symbol “BBIG”.

 

    	 

     

    

 

Transfer
Agent and Registrar

 

Our
transfer agent and registrar for all securities registered under Section 12 of the Exchange Act is Nevada
Agency & Transfer Company.

 

Anti-Takeover
Effects of Nevada Law and the Articles of Incorporation and Bylaws

 

Certain
provisions of the Articles of Incorporation and Bylaws, and certain provisions of the NRS could make our acquisition by a third party,
a change in our incumbent management, or a similar change of control more difficult. These provisions, which are summarized below, are
likely to reduce our vulnerability to an unsolicited proposal for the restructuring or sale of all or substantially all of our assets
or an unsolicited takeover attempt. The summary of the provisions set forth below does not purport to be complete and is qualified in
its entirety by reference to the Articles of Incorporation and the Bylaws and the relevant provisions of the NRS.

 

Authorized
but Unissued Shares

 

Our
authorized but unissued shares of common stock and preferred stock are available for future issuance, subject to any limitations imposed
by the listing standards of the Nasdaq Capital Market. These additional shares may be used for a variety of corporate finance transactions,
acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could
make it more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

 

Our
authorized capital includes “blank check”. Our Board has the authority to issue preferred stock in one or more class or series
and determine the price, designation, rights, preferences, privileges, restrictions and conditions, including voting and dividend rights,
of those shares without any further vote or action by stockholders. The rights of the holders of common stock will be subject to, and
may be adversely affected by, the rights of holders of any preferred stock that may be issued in the future. The issuance of additional
preferred stock, while providing desirable flexibility in connection with possible financings and acquisitions and other corporate purposes,
could make it more difficult for a third party to acquire a majority of the voting power of our outstanding voting securities, which
could deprive our holders of common stock of a premium that they might otherwise realize in connection with a proposed acquisition of
our Company.

 

No
Written Consent by Stockholders

 

Our
Articles of Incorporation provide that all stockholder actions are required to be taken by a vote of the stockholders at an annual or
special meeting, and that stockholders may not take any action by written consent in lieu of a meeting. The affirmative vote of at least
two-thirds of the voting power of the issued and outstanding stock entitled to vote is required to amend or repeal this provision.

 

Advance
Notice Requirements

 

Stockholders
wishing to nominate persons for election to our Board at a meeting or to propose any business to be considered by our stockholders at
a meeting must comply with certain advance notice and other requirements set forth in our Bylaws and Rule 14a-8 of the Exchange Act.

 

Special
Meetings

 

Our
Bylaws provide that special meetings of stockholders may only be called by the Board, the chairman of the Board, the chief executive
officer, or the president. Business transacted at all special meetings shall be confined to the purposes stated in the notice of the
meeting unless all stockholders entitled to vote are present and consent.

 

Board
Vacancies

 

Our
Bylaws provide that any vacancy on our Board, howsoever resulting, may be filled by a majority vote of the remaining directors.

 

    	 

     

    

 

Removal
of Directors

 

Our
Articles of Incorporation provide that any director may be removed either for or without cause at any special meeting of stockholders
by the affirmative vote of at least two-thirds of the voting power of the issued and outstanding stock entitled to vote; provided, however,
that notice of intention to act upon such matter shall have been given in the notice calling such meeting.

 

Right
to Alter, Amend or Repeal Bylaws

 

Our
Bylaws provide that they may be altered, amended or repealed by the Board.

 

Indemnification
of Officers and Directors and Insurance

 

Our
Articles of Incorporation provide that our directors and officers will not be liable to us for monetary damages for any breach of their
fiduciary duty as a director or officer if such person acted in good faith and in a manner such person reasonably believed to be in or
not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to
believe such person’s conduct was unlawful.

 

Our
Bylaws provide for limitation of liability of our directors and for indemnification of our directors and officers to the fullest extent
permitted under Nevada law. Our directors and officers may be liable for a breach or failure to perform their duties in accordance with
Nevada law only if their breach or failure to perform constitutes gross negligence, willful misconduct or intentional harm on our Company
or our stockholders. Our directors may not be personally liable for monetary damages for action taken or failure to take action as a
director except in specific instances established by Nevada law.

 

In
accordance with Nevada law, we may generally indemnify a director or officer against liability incurred in a proceeding if he or she
acted in good faith, and believed that his or her conduct was in our best interest and that he or she had no reason to believe his or
her conduct was unlawful. We may not indemnify a director or officer if the person was adjudged liable to us or in the event it is adjudicated
that the director or officer received an improper personal benefit.

 

Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons
pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the U.S. Securities and Exchange Commission,
such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.

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