Document:

XTL
        Biopharmaceuticals LTD.

      

      1998
        EMPLOYEE SHARE OPTION PLAN

      

      A.
        NAME
        AND PURPOSE

      

      

      1.    Name:
        This
        plan, as amended from time to time, shall be known as the “XTL
        Biopharmaceuticals Ltd. 1998 Employee Share Option Plan” (the
“Plan”).

      

      2.    Purpose:
        The
        purpose and intent of the Plan is to provide incentives to the employees
        of XTL
        Biopharmaceuticals Ltd. (the "Company") and its subsidiaries by providing
        them
        with options to purchase Ordinary Shares, nominal value 0.20 New Israeli
        Shekels
        each (the "Shares"), of the Company.

      

      B.
        GENERAL TERMS AND CONDITIONS OF THE PLAN

      

      3.    Administration: 

      

      3.1 The
        Plan
        will be administered by the Board of Directors of the Company (the "Board")
        or
        by a committee appointed by the Board (the "Committee"), which, if appointed,
        will consist of such number of Directors of the Company as may be fixed,
        from
        time to time, by the Board. If a Committee is not appointed, the term Committee,
        whenever used herein, shall mean the Board. The Board shall appoint the members
        of the Committee, may from time to time remove members from, or add members
        to,
        the Committee and shall fill vacancies in the Committee however
        caused.

      

      3.2 The
        Committee shall select one of its members as its Chairman and shall hold
        its
        meetings at such times and places as it shall determine. Actions taken by
        a
        majority of the members of the Committee, at a meeting at which a majority
        of
        its members is present, or acts reduced to or approved in writing by all
        members
        of the Committee, shall be the valid acts of the Committee. The Committee
        may
        appoint a Secretary, who shall keep records of its meetings and shall make
        such
        rules and regulations for the conduct of its business as it shall deem
        advisable.

       

      3.3 Subject
        to the general terms and conditions of this Plan, the Committee shall have
        the
        full authority in its sole and absolute discretion, from time to time and
        at any
        time, to determine (i) the persons ("Grantees") to whom options to
        purchase
        Shares ("Option(s)") shall be granted, (ii) the number of Shares to
        be
        covered by each Option, (iii) the time or times at which the same
        shall be
        granted, (iv) the schedule and conditions on which such Options may
        be
        exercised and on which such Shares shall be paid for, and/or (v) any
        other
        matter which is necessary or desirable for, or incidental to, the administration
        of the Plan. 

      

      3.4 The
        Committee may, from time to time, adopt such rules and regulations for carrying
        out the Plan as it may deem necessary. No member of the Board or of the
        Committee shall be liable for any act or determination made in good faith
        with
        respect to the Plan or any Option granted thereunder.

      

      3.5 The
        interpretation and construction by the Committee of any provision of the
        Plan or
        of any Option thereunder shall be final and conclusive unless otherwise
        determined by the Board.

      

      4.    Eligible
        Grantees:
        The
        Committee, at its discretion, may grant Options to any employee of the Company
        (including officers, directors who are employees) or its subsidiaries. Anything
        in this Plan to the contrary notwithstanding, all grants of Options to Directors
        and Office Holders -"Nosei Misra" - as such term is defined
        in the
        Israeli Companies Ordinance (New Version), 1983, as amended from time to
        time
        (the "Companies Ordinance") - shall be authorized and implemented
        only in
        accordance with the provisions of the Companies Ordinance. The grant of an
        Option to a Grantee hereunder, shall neither entitle such Grantee to
        participate, nor disqualify him from participating, in any other grant of
        options pursuant to this Plan or any other stock option plan of the Company.
        

      

      5.    Grant
        of Options in Trust: 

       

      5.1
         Subject
        to Section 7.1 hereof, the effective date of the grant of an Option (the
        "Date
        of Grant") shall be the date specified by the Committee in its determination
        relating to the award of such Option. The Committee shall promptly give the
        Grantee written notice (the “Notice of Grant”) of the grant of an
        Option.

      

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

       

      5.2 Anything
        herein to the contrary notwithstanding, all Options granted under the Plan
        shall
        be granted by the Company to a trustee designated by the Board (the "Trustee"),
        the Trustee shall hold each such Option in trust (the "Trust") for the benefit
        of the Grantee in respect of whom such Option was granted (the "Beneficial
        Grantee"), and no Options shall be released from the Trust until the vesting
        of
        such Options pursuant to Section 7.2 hereof (the "Release Date").
        From and
        after the Release Date, upon the written request of any Beneficial Grantee,
        the
        Trustee shall release from the Trust the Options granted and exercise them
        on
        behalf of such Beneficial Grantee, by executing and delivering to the Company
        such instrument(s) as the Company may require, giving due notice of such
        release
        to such Beneficial Grantee, provided, however, that the Trustee shall not
        so
        release and exercise any such Options on behalf of the Beneficial Grantee
        unless
        the latter, prior to, or concurrently with, such release and exercise, provides
        the Trustee with evidence, satisfactory in form and substance to the Trustee,
        that all taxes and/or compulsory payments, if any, required to be paid upon
        such
        release and exercise have, in fact, been paid.

      

      6.    Reserved
        Shares:
        The
        Company has reserved 503,836 authorized but unissued Shares for purposes
        of the
        Plan subject to adjustments as provided in Section 11 hereof. All
        Shares
        under the Plan, in respect of which the right hereunder of a Grantee to purchase
        the same shall, for any reason, terminate, expire or otherwise cease to exist,
        shall again be available for grant through Options under the Plan.

      

      7.    Grant
        of Options:

      

      7.1 The
        Committee in its discretion may award to Grantees Options to purchase Shares
        in
        the Company available under the Plan. Options may be granted at any time
        after
        receipt of a pre-ruling from the Income Tax Authorities that the exercise
        of
        Options granted under the Plan will be subject to tax in accordance with
        the
        provisions of Section 3(i) of the Income Tax Ordinance [New Version]
        1961.

      

      7.2 The
        Notice of Grant shall state, inter alia, the number of Shares covered thereby,
        the schedule pursuant to which such Options shall vest, the Beneficial Grantee
        thereof shall be entitled to pay for, and acquire, the Shares, the exercise
        price, and such other terms and conditions as the Committee at its discretion
        may prescribe, provided that they are consistent with this Plan.

       

      7.3 Without
        derogating from the rights and powers of the Committee under Section 7.2
        hereof, unless otherwise specified in the Notice of Grant, each Option under
        the
        Plan shall be for a term of ten (10) years. 

      

      8.    Exercise
        Price:
        The
        exercise price per Share covered by each Option shall be determined by the
        Committee in its sole and absolute discretion.

      

      9.    Exercise
        of Options:

      

      9.1 Options
        shall be exercisable pursuant to the terms under which they were awarded
        and
        subject to the terms and conditions of the Plan.

      

      9.2 The
        exercise of an Option shall be made by a written notice of exercise (the
        "Notice
        of Exercise") delivered by the Trustee (after receipt of written instructions
        from the Beneficial Grantee) to the Company at its principal executive office,
        specifying the number of Shares to be purchased and accompanied by the payment
        therefor, and containing such other terms and conditions as the Committee
        shall
        prescribe from time to time.

      

      9.3 Anything
        herein to the contrary notwithstanding, but without derogating from the
        provisions of Section 10 hereof, if any Option has not been exercised
        and
        the Shares covered thereby not paid for within ten (10) years after the Date
        of
        Grant (or any shorter period set forth in the Notice of Grant), such Option
        and
        the right to acquire such Shares shall terminate, all interests and rights
        of
        the Grantee in and to the same shall ipso facto expire, and, in the event
        that
        in connection therewith any Options are still held in the Trust as aforesaid,
        the Trust with respect thereto shall ipso facto expire and the Trustee shall
        thereafter hold such Options in an unallocated pool until instructed by the
        Company that some or all of such Options are again to be held in trust for
        one
        or more Grantees.

       

      9.4 Each
        payment for Shares shall be in respect of a whole number of Shares, and shall
        be
        effected in cash or by a cashier's check payable to the order of the Company,
        or
        such other method of payment acceptable to the Company. 

      

      10.   Termination
        of Employment:

      

      10.1 In
        the
        event that a Grantee ceases, for any reason, to be employed by the Companies,
        all Options theretofore granted to such Grantee shall terminate as
        follows:

       

      (a) If
        the
        Grantee’s termination of employment is due to such Grantee’s death or
“Disability” (as hereinafter defined), such Option (to the extent exercisable at
        the time of the Grantee’s termination of employment) shall be exercisable by the
        Grantee’s legal representative, estate of other person to whom the Grantee’s
        rights are transferred by will or by laws of descent of distribution for
        a
        period of six (6) months following such termination of employment (but in
        no
        event after the expiration date of such Option), and shall thereafter terminate.
        For purposes hereof, Disability shall mean the inability, due to illness
        or
        injury, to engage in any gainful occupation for which the individual is suited
        by education, training or experience, which condition continues for at least
        six
        (6) months.

      

      (b) If
        the
        Grantee’s termination of employment is for any other reason, such Options (to
        the extent exercisable at the time of the Grantee's termination of employment)
        shall be exercisable for a period of thirty (30) days following such termination
        of employment, and shall thereafter terminate; provided,
        however,
        that if
        the Grantee’s dies within such thirty-day period, such Options (to the extent
        exercisable at the time of the Grantee's termination of employment) shall
        be
        exercisable by the Grantee's legal representative, estate or other person
        to
        whom the Grantee's rights are transferred by will or by laws of descent or
        distribution for a period of six (6) months following the Grantee’s death (but
        in no event after the expiration date of such Option), and shall thereafter
        terminate.

      

      10.2 Notwithstanding
        the foregoing provisions of Section 10.1, the Committee may provide,
        either
        at the time an Option is granted or thereafter, that such Option may be
        exercised after the periods provided for in Section 10.1, but in no
        event
        beyond the term of the Option.

      

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      11.    Adjustment
        Upon Changes in Capitalization:

      

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

      

      11.2 In
        the
        event of the proposed dissolution or liquidation of the Company, the Committee
        shall notify each Grantee at least fifteen (15) days prior to such proposed
        action. To the extent it has not been previously exercised, each Option will
        terminate immediately prior to the consummation of such proposed action.
        In the
        event of a consolidation or the merger of the Company with or into another
        corporation, each Option shall be assumed or an equivalent option shall be
        substituted by such successor corporation or a parent or subsidiary of such
        successor corporation.

      
         

      

      12.   Non-Transferability: 
        No
        Option
        shall be assignable or transferable by the Grantee to whom granted otherwise
        than by will or the laws of descent and distribution, and an Option may be
        exercised during the lifetime of the Grantee only by such Grantee or by such
        Grantee's guardian or legal representative. The terms of such Option shall
        be
        binding upon the beneficiaries, executors, administrators, heirs and successors
        of such Grantee.

      

      13.   Terms
        and Amendment of the Plan:

      

      13.1 The
        Plan
        was authorized by the Board on October 19, 1998, and shall expire on October
        19,
        2008 (except as to Options outstanding on that date), but such expiration
        shall
        not affect the instructions contained herein or in any applicable law with
        respect to the Options and Shares held in the Trust at such time of
        expiration.

      

      13.2 Subject
        to applicable laws, the Board may, at any time and from time to time, terminate
        or amend the Plan in any respect. In no event may any action of the Company
        alter or impair the rights of a Grantee, without his consent, under any Option
        previously granted to him.

      

      14.    Tax
        Consequences:
        All tax
        consequences and/or obligations regarding other compulsory payment arising
        from
        the grant or exercise of any Option, from the payment for, or the subsequent
        disposition of, Shares covered thereby or from any other event or act (of
        the
        Company or the Grantee) hereunder, shall be borne solely by the Grantee,
        and the
        Grantee shall indemnify the Company and the Trustee and hold them harmless
        against and from any and all liability for any such tax (and compulsory payment,
        if any) or interest or penalty thereon, including without limitation,
        liabilities relating to the necessity to withhold, or to have withheld, any
        such
        tax (and compulsory payment, if any) from any payment made to the
        Grantee.

       

      15.    Miscellaneous:

      

      15.1    Continuance
        of Employment:
        Neither
        the Plan nor the grant of an Option thereunder shall impose any obligation
        on
        the Company to continue the employment of any Grantee, and nothing in the
        Plan
        or in any Option granted pursuant thereto shall confer upon any Grantee any
        right to continue in the employ of the Company, or restrict the right of
        the
        Company to terminate such employment at any time.

      

      15.2    Governing
        Law: The
        Plan
        and all instruments issued thereunder or in connection therewith, shall be
        governed by, and interpreted in accordance with, the laws of the State of
        Israel.

      

      15.3    Application
        of Funds:
        The
        proceeds received by the Company from the sale of Shares pursuant to Options
        granted under the Plan will be used for general corporate purposes of the
        Company.

      

      15.4    Multiple
        Agreements:
        The
        terms of each Option may differ from other Options granted under the Plan
        at the
        same time, or at any other time. The Committee may also grant more than one
        Option to a given Grantee during the term of the Plan, either in addition
        to, or
        in substitution for, one or more Options previously granted to that Grantee.
        The
        grant of multiple Options may be evidenced by a single Notice of Grant or
        multiple Notices of Grants, as determined by the Committee.

       

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

      
      

      
        
           

        

        
          -3-XTL
        Biopharmaceuticals LTD.

       

      1999
        DIRECTORS, CONSULTANTS AND EMPLOYEES SHARE OPTION PLAN

       

       

      A.
        NAME
        AND PURPOSE

       

      1.    Name:
        This
        plan, as amended from time to time, shall be known as the “XTL
        Biopharmaceuticals Ltd. 1999 Directors, Consultants and Employee Share Option
        Plan” (the “Plan”). 

      

      2.    Purpose:
        The
        purpose and intent of the Plan is to provide incentives to the directors,
        consultants and employees of XTL Biopharmaceuticals Ltd. (the "Company")
        and its
        subsidiaries by providing them with options to purchase Ordinary Shares,
        nominal
        value 0.02 New Israeli Shekels each (the "Shares"), of the Company.

      

      B.
        GENERAL TERMS AND CONDITIONS OF THE PLAN

      

      3.    Administration: 

      

      3.1    The
        Plan
        will be administered by the Board of Directors of the Company (the "Board")
        or
        by a committee appointed by the Board (the "Committee"), which, if appointed,
        will consist of such number of Directors of the Company as may be fixed,
        from
        time to time, by the Board. If a Committee is not appointed, the term Committee,
        whenever used herein, shall mean the Board. The Board shall appoint the members
        of the Committee, may from time to time remove members from, or add members
        to,
        the Committee and shall fill vacancies in the Committee however
        caused.

      

      3.2    The
        Committee shall select one of its members as its Chairman and shall hold
        its
        meetings at such times and places as it shall determine. Actions taken by
        a
        majority of the members of the Committee, at a meeting at which a majority
        of
        its members is present, or acts reduced to or approved in writing by all
        members
        of the Committee, shall be the valid acts of the Committee. The Committee
        may
        appoint a Secretary, who shall keep records of its meetings and shall make
        such
        rules and regulations for the conduct of its business as it shall deem
        advisable.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      3.3    Subject
        to the general terms and conditions of this Plan, the Committee shall have
        the
        full authority in its sole and absolute discretion, from time to time and
        at any
        time, to determine (i) the persons ("Grantees") to whom options to
        purchase
        Shares ("Option(s)") shall be granted, (ii) the number of Shares to
        be
        covered by each Option, (iii) the time or times at which the same
        shall be
        granted, (iv) the schedule and conditions on which such Options may
        be
        exercised and on which such Shares shall be paid for, and/or (v) any
        other
        matter which is necessary or desirable for, or incidental to, the administration
        of the Plan. 

      

      3.4    The
        Committee may, from time to time, adopt such rules and regulations for carrying
        out the Plan as it may deem necessary. No member of the Board or of the
        Committee shall be liable for any act or determination made in good faith
        with
        respect to the Plan or any Option granted thereunder.

      

      3.5    The
        interpretation and construction by the Committee of any provision of the
        Plan or
        of any Option thereunder shall be final and conclusive unless otherwise
        determined by the Board.

      

      4.    Eligible
        Grantees:
        The
        Committee, at its discretion, may grant Options to any employee of the Company
        (including officers, directors who are employees) or its subsidiaries. Anything
        in this Plan to the contrary notwithstanding, all grants of Options to Directors
        and Office Holders -"Nosei Misra" - as such term is defined
        in the
        Israeli Companies Ordinance (New Version), 1983, as amended from time to
        time
        (the "Companies Ordinance") - shall be authorized and implemented
        only in
        accordance with the provisions of the Companies Ordinance. The grant of an
        Option to a Grantee hereunder, shall neither entitle such Grantee to
        participate, nor disqualify him from participating, in any other grant of
        options pursuant to this Plan or any other stock option plan of the Company.
        

      

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      

      5.    Grant
        of Options in Trust: 

       

      5.1     Subject
        to Section 7.1 hereof, the effective date of the grant of an Option (the
        "Date
        of Grant") shall be the date specified by the Committee in its determination
        relating to the award of such Option. The Committee shall promptly give the
        Grantee written notice (the “Notice of Grant”) of the grant of an
        Option.

       

      5.2    Anything
        herein to the contrary notwithstanding, all Options granted under the Plan
        shall
        be granted by the Company to a trustee designated by the Board (the "Trustee"),
        the Trustee shall hold each such Option in trust (the "Trust") for the benefit
        of the Grantee in respect of whom such Option was granted (the "Beneficial
        Grantee"), and no Options shall be released from the Trust until the vesting
        of
        such Options pursuant to Section 7.2 hereof (the "Release Date").
        From and
        after the Release Date, upon the written request of any Beneficial Grantee,
        the
        Trustee shall release from the Trust the Options granted and exercise them
        on
        behalf of such Beneficial Grantee, by executing and delivering to the Company
        such instrument(s) as the Company may require, giving due notice of such
        release
        to such Beneficial Grantee, provided, however, that the Trustee shall not
        so
        release and exercise any such Options on behalf of the Beneficial Grantee
        unless
        the latter, prior to, or concurrently with, such release and exercise, provides
        the Trustee with evidence, satisfactory in form and substance to the Trustee,
        that all taxes and/or compulsory payments, if any, required to be paid upon
        such
        release and exercise have, in fact, been paid.

      

      6.    Reserved
        Shares:
        The
        Company has reserved 151,000 authorized but unissued Shares for purposes
        of the
        Plan subject to adjustments as provided in Section 11 hereof. All
        Shares
        under the Plan, in respect of which the right hereunder of a Grantee to purchase
        the same shall, for any reason, terminate, expire or otherwise cease to exist,
        shall again be available for grant through Options under the Plan.

      

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      7.    Grant
        of Options:

      

      7.1    The
        Committee in its discretion may award to Grantees Options to purchase Shares
        in
        the Company available under the Plan. Options may be granted at any time
        after
        receipt of a pre-ruling from the Income Tax Authorities that the exercise
        of
        Options granted under the Plan will be subject to tax in accordance with
        the
        provisions of Section 102 of the Income Tax Ordinance [New Version]
        1961.

      

      7.2    The
        Notice of Grant shall state, inter alia, the number of Shares covered thereby,
        the schedule pursuant to which such Options shall vest, the Beneficial Grantee
        thereof shall be entitled to pay for, and acquire, the Shares, the exercise
        price, and such other terms and conditions as the Committee at its discretion
        may prescribe, provided that they are consistent with this Plan.

      

      7.3    Without
        derogating from the rights and powers of the Committee under Section 7.2
        hereof, unless otherwise specified in the Notice of Grant, each Option under
        the
        Plan shall be for a term of ten (10) years. 

      

      8.    Exercise
        Price:
        The
        exercise price per Share covered by each Option shall be determined by the
        Committee in its sole and absolute discretion.

      

      9.    Exercise
        of Options:

      

      9.1    Options
        shall be exercisable pursuant to the terms under which they were awarded
        and
        subject to the terms and conditions of the Plan.

      

      9.2    The
        exercise of an Option shall be made by a written notice of exercise (the
        "Notice
        of Exercise") delivered by the Trustee (after receipt of written instructions
        from the Beneficial Grantee) to the Company at its principal executive office,
        specifying the number of Shares to be purchased and accompanied by the payment
        therefor, and containing such other terms and conditions as the Committee
        shall
        prescribe from time to time.

      

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      9.3    Anything
        herein to the contrary notwithstanding, but without derogating from the
        provisions of Section 10 hereof, if any Option has not been exercised
        and
        the Shares covered thereby not paid for within ten (10) years after the Date
        of
        Grant (or any shorter period set forth in the Notice of Grant), such Option
        and
        the right to acquire such Shares shall terminate, all interests and rights
        of
        the Grantee in and to the same shall ipso facto expire, and, in the event
        that
        in connection therewith any Options are still held in the Trust as aforesaid,
        the Trust with respect thereto shall ipso facto expire and the Trustee shall
        thereafter hold such Options in an unallocated pool until instructed by the
        Company that some or all of such Options are again to be held in trust for
        one
        or more Grantees.

       

      9.4    Each
        payment for Shares shall be in respect of a whole number of Shares, and shall
        be
        effected in cash or by a cashier's check payable to the order of the Company,
        or
        such other method of payment acceptable to the Company. 

      

      10.   Termination
        of Employment:

      

      10.1   In
        the
        event that a Grantee ceases, for any reason, to be employed by the Companies,
        all Options theretofore granted to such Grantee shall terminate as
        follows:

      

      (a)    If
        the
        Grantee’s termination of employment is due to such Grantee’s death or
“Disability” (as hereinafter defined), such Option (to the extent exercisable at
        the time of the Grantee’s termination of employment) shall be exercisable by the
        Grantee’s legal representative, estate of other person to whom the Grantee’s
        rights are transferred by will or by laws of descent of distribution for
        a
        period of six (6) months following such termination of employment (but in
        no
        event after the expiration date of such Option), and shall thereafter terminate.
        For purposes hereof, Disability shall mean the inability, due to illness
        or
        injury, to engage in any gainful occupation for which the individual is suited
        by education, training or experience, which condition continues for at least
        six
        (6) months.

      

      (b)    If
        the
        Grantee’s termination of employment is for any other reason, such Options (to
        the extent exercisable at the time of the Grantee's termination of employment)
        shall be exercisable for a period of thirty (30) days following such termination
        of employment, and shall thereafter terminate; provided,
        however,
        that if
        the Grantee’s dies within such thirty-day period, such Options (to the extent
        exercisable at the time of the Grantee's termination of employment) shall
        be
        exercisable by the Grantee's legal representative, estate or other person
        to
        whom the Grantee's rights are transferred by will or by laws of descent or
        distribution for a period of six (6) months following the Grantee’s death (but
        in no event after the expiration date of such Option), and shall thereafter
        terminate.

      

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      10.2   Notwithstanding
        the foregoing provisions of Section 10.1, the Committee may provide,
        either
        at the time an Option is granted or thereafter, that such Option may be
        exercised after the periods provided for in Section 10.1, but in no
        event
        beyond the term of the Option.

      

      11.   Adjustment
        Upon Changes in Capitalization

      

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

      

      11.2    In
        the
        event of the proposed dissolution or liquidation of the Company, the Committee
        shall notify each Grantee at least fifteen (15) days prior to such proposed
        action. To the extent it has not been previously exercised, each Option will
        terminate immediately prior to the consummation of such proposed action.
        In the
        event of a consolidation or the merger of the Company with or into another
        corporation, each Option shall be assumed or an equivalent option shall be
        substituted by such successor corporation or a parent or subsidiary of such
        successor corporation.

       

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      12.    Non-Transferability: 

       

      No
        Option
        shall be assignable or transferable by the Grantee to whom granted otherwise
        than by will or the laws of descent and distribution, and an Option may be
        exercised during the lifetime of the Grantee only by such Grantee or by such
        Grantee's guardian or legal representative. The terms of such Option shall
        be
        binding upon the beneficiaries, executors, administrators, heirs and successors
        of such Grantee.

      

      13.   Terms
        and Amendment of the Plan:

      

      13.1    The
        Plan
        was authorized by the Board on June 1, 1999 and shall expire on June 1, 2009
        (except as to Options outstanding on that date), but such expiration shall
        not
        affect the instructions contained herein or in any applicable law with respect
        to the Options and Shares held in the Trust at such time of
        expiration.

      

      13.2    Subject
        to applicable laws, the Board may, at any time and from time to time, terminate
        or amend the Plan in any respect. In no event may any action of the Company
        alter or impair the rights of a Grantee, without his consent, under any Option
        previously granted to him.

      

      14.   Tax
        Consequences:
        All tax
        consequences and/or obligations regarding other compulsory payment arising
        from
        the grant or exercise of any Option, from the payment for, or the subsequent
        disposition of, Shares covered thereby or from any other event or act (of
        the
        Company or the Grantee) hereunder, shall be borne solely by the Grantee,
        and the
        Grantee shall indemnify the Company and the Trustee and hold them harmless
        against and from any and all liability for any such tax (and compulsory payment,
        if any) or interest or penalty thereon, including without limitation,
        liabilities relating to the necessity to withhold, or to have withheld, any
        such
        tax (and compulsory payment, if any) from any payment made to the
        Grantee.

       

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      15.   Miscellaneous:

      

      15.1   Continuance
        of Employment:
        Neither
        the Plan nor the grant of an Option thereunder shall impose any obligation
        on
        the Company to continue the employment of any Grantee, and nothing in the
        Plan
        or in any Option granted pursuant thereto shall confer upon any Grantee any
        right to continue in the employ of the Company, or restrict the right of
        the
        Company to terminate such employment at any time.

      

      15.2   Governing
        Law: The
        Plan
        and all instruments issued thereunder or in connection therewith, shall be
        governed by, and interpreted in accordance with, the laws of the State of
        Israel.

      

      15.3   Application
        of Funds:
        The
        proceeds received by the Company from the sale of Shares pursuant to Options
        granted under the Plan will be used for general corporate purposes of the
        Company.

      

      15.4   Multiple
        Agreements:
        The
        terms of each Option may differ from other Options granted under the Plan
        at the
        same time, or at any other time. The Committee may also grant more than one
        Option to a given Grantee during the term of the Plan, either in addition
        to, or
        in substitution for, one or more Options previously granted to that Grantee.
        The
        grant of multiple Options may be evidenced by a single Notice of Grant or
        multiple Notices of Grants, as determined by the Committee.

       

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

      
      

      
        
           

        

        
          -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00087-of-00352.parquet"}]]