Document:

Exhibit 10.5

 

 

 

	monday.com Ltd.

                                                                                2021 EMPLOYEE SHARE PURCHASE PLAN 

	

 

ARTICLE I.

PURPOSE

 

The purpose of this Plan is to assist
Eligible Employees of the Company and its Designated Subsidiaries in acquiring a share ownership interest in the Company.

 

The Plan consists
of two components: (i) the Section 423 Component and (ii) the Non-Section 423 Component. The Section 423 Component is intended to qualify
as an “employee stock purchase plan” under Section 423 of the Code and shall be administered, interpreted and construed in
a manner consistent with the requirements of Section 423 of the Code. Non- The Non-Section 423 Component authorizes the grant of rights
which need not qualify as rights granted pursuant to an “employee stock purchase plan” under Section 423 of the Code. Rights
granted under the Non-Section 423 Component shall be granted pursuant to separate Offerings containing such sub-plans, appendices, rules
or procedures as may be adopted by the Administrator and designed to achieve tax, securities laws or other objectives for Eligible Employees
and Designated Subsidiaries but shall not be intended to qualify as an “employee stock purchase plan” under Section 423 of
the Code. Except as otherwise determined by the Administrator or provided herein, the Non-Section 423 Component will operate and be administered
in the same manner as the Section 423 Component. Offerings intended to be made under the Section 423 Component will be designated as such
by the Administrator at or prior to the time of such Offering.

 

For purposes
of this Plan, the Administrator may designate separate Offerings under the Plan in which Eligible Employees will participate. The terms
of these Offerings need not be identical, even if the dates of the applicable Offering Period(s) in each such Offering are identical,
provided that the terms of participation are the same within each separate Offering under the Section 423 Component (as determined under
Section 423 of the Code). Solely by way of example and without limiting the foregoing, the Company could, but shall not be required to,
provide for simultaneous Offerings under the Section 423 Component and the Non-Section 423 Component of the Plan.

 

ARTICLE
II.

DEFINITIONS AND CONSTRUCTION

 

Wherever the following terms are
used in the Plan they shall have the meanings specified below, unless the context clearly indicates otherwise.

 

2.1              
“Administrator” means the entity, including any committee specifically designated by the Board, that
conducts the general administration of the Plan as provided in Article XI.

 

2.2              
“Affiliate” means any entity in which the Company has an equity or other ownership interests.

 

2.3              
“Agent” means the brokerage firm, bank or other financial institution, entity or person(s), if any, engaged,
retained, appointed or authorized to act as the agent of the Company or an Employee with regard to the Plan.

 

     

     

    

 

2.4               “Applicable
Law” means the requirements relating to the administration of equity incentive plans under U.S. federal and state
securities, tax and other applicable laws, rules and regulations, the applicable rules of any stock exchange or quotation system on
which Shares are listed or quoted and the applicable laws and rules of any non-U.S. country or other jurisdiction where rights under
this Plan are granted.

 

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 2.5               “Board” means the Board of Directors of the Company.

 

2.6              
“Code” means the U.S. Internal Revenue Code of 1986, as amended, and the regulations issued thereunder.

 

 2.7               “Company” means monday.com Ltd., an Israeli company, or any successor.

 

2.8              
“Compensation” of an Eligible Employee means, unless otherwise determined by the Administrator, the gross
base compensation received by such Eligible Employee as compensation for services to the Company or any Designated Subsidiary, including
overtime payments and excluding sales commissions, incentive compensation, bonuses, expense reimbursements, fringe benefits, any amounts
realized from the exercise of any stock options or incentive awards and other special payments.

 

2.9               “Designated
Subsidiary” means any Subsidiary designated by the Administrator in accordance with Section 11.2(b), such designation
to specify whether such participation is in the Section 423 Component or Non-Section 423 Component. A Designated Subsidiary may
participate in either the Section 423 Component or Non-Section 423 Component, but not both; provided that a Subsidiary that, for
U.S. tax purposes, is disregarded from the Company or any Subsidiary that participates in the Section 423 Component shall
automatically constitute a Designated Subsidiary that participates in the Section 423 Component. The designation by the
Administrator of Designated Subsidiaries and changes in such designations by the Administrator shall not require shareholder
approval. Only entities that are subsidiary corporations of the Company within the meaning of Section 424 of the Code may be
designated as Designated Subsidiaries for purposes of the Section 423 Component, and if an entity does not so qualify, it shall
automatically be deemed to be a Designated Subsidiary in the Non-Section 423 Component.

 

2.10            “Effective
Date” means the date upon which the Plan is approved by the shareholders of the Company, provided that the Board
has adopted the Plan on, or within 12 months prior to, such date.

 

 2.11            “Eligible Employee” means:

 

(a)           With
respect to the Section 423 Component of the Plan, an Employee who does not, immediately after any rights under this Plan are granted,
own (directly or through attribution) share possessing 5% or more of the total combined voting power or value of all classes of Shares
and other securities of the Company, a Parent or a Subsidiary (as determined under Section 423(b)(3) of the Code). For purposes of the
foregoing, the rules of Section 424(d) of the Code with regard to the attribution of share ownership shall apply in determining the share
ownership of an individual, and a share that an Employee may purchase under outstanding options shall be treated as a share owned by
the Employee. With respect to an Employee participating in the Non-Section 423 Component, such qualification shall not apply, unless
otherwise required by Applicable Law.

 

(b)          Notwithstanding
the foregoing, the Administrator may provide in an Offering Document that an Employee shall not be eligible to participate in an
Offering Period under the Section 423 Component if: (i) such Employee is a highly compensated employee within the meaning of Section
423(b)(4)(D) of the Code; (ii) such Employee has not met a service requirement designated by the Administrator pursuant to Section
423(b)(4)(A) of the Code (which service requirement may not exceed two years); (iii) such Employee’s customary employment is
for twenty hours per week or less; (iv) such Employee’s customary employment is for less than five months in any calendar
year; and/or (v) such Employee is a citizen or resident of a non-U.S. jurisdiction and the grant of a right to purchase Shares under
the Plan to such Employee would be prohibited under the laws of such non-U.S. jurisdiction or the grant of a right to purchase
Shares under the Plan to such Employee in compliance with the laws of such non-U.S. jurisdiction would cause the Plan to violate the
requirements of Section 423 of the Code, as determined by the Administrator in its sole discretion; provided, further,
that any exclusion in clauses (i), (ii), (iii), (iv) or (v) shall be applied in an identical manner under each Offering Period to
all Employees, in accordance with Treasury Regulation Section 1.423-2(e).

 

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(c)           With respect to the Non-Section 423 Component, the foregoing rules shall apply in determining who is an “Eligible Employee,”
except (i) the Administrator may limit eligibility further within the Company or a Designated Subsidiary so as to only designate some
Employees of the Company or a Designated Subsidiary as Eligible Employees, and (ii) to the extent the foregoing eligibility rules are
not consistent with applicable local laws, the applicable local laws shall control.

 

2.12            “Employee” means any individual who renders services to the Company or any Designated Subsidiary in the
status of an employee, and, with respect to the Section 423 Component, a person who is an employee within the meaning of Section 3401(c)
of the Code. For purposes of an individual’s participation in, or other rights under the Plan, all determinations by the Company
shall be final, binding and conclusive, notwithstanding that any court of law or governmental agency subsequently makes a contrary determination.
For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other
leave of absence approved by the Company or Designated Subsidiary and meeting the requirements of Treasury Regulation Section 1.421-1(h)(2).
Where the period of leave exceeds three (3) months and the individual’s right to reemployment is not guaranteed either by statute
or by contract, the employment relationship shall be deemed to have terminated on the first day immediately following such three (3)-month
period.

 

 2.13            “Enrollment Date” means the first Trading Day of each Offering Period.

 

 2.14            “Fair Market Value” means, as of any date, the value of Shares determined as follows:

(i) if the Shares are listed on
any established stock exchange, its Fair Market Value will be the closing sales price for such Shares as quoted on such exchange for such
date, or if no sale occurred on such date, the last day preceding such date during which a sale occurred, as reported in The Wall Street
Journal or another source the Administrator deems reliable; (ii) if the Shares are not traded on a stock exchange but are quoted on a
national market or other quotation system, the closing sales price on such date, or if no sales occurred on such date, then on the last
date preceding such date during which a sale occurred, as reported in The Wall Street Journal or another source the Administrator deems
reliable; or (iii) without an established market for the Shares, the Administrator will determine the Fair Market Value in its discretion.

 

2.15           
“Non-Section 423 Component” means those Offerings under the Plan, together with the sub-plans, appendices,
rules or procedures, if any, adopted by the Administrator as a part of this Plan, in each case, pursuant to which rights to purchase Shares
during an Offering Period may be granted to Eligible Employees that need not satisfy the requirements for rights to purchase Shares granted
pursuant to an “employee stock purchase plan” that are set forth under Section 423 of the Code.

 

2.16           
“Offering” means an offer under the Plan of a right to purchase Shares that may be exercised during an
Offering Period as further described in Article IV hereof. Unless otherwise specified by the Administrator, each Offering to the Eligible
Employees of the Company or a Designated Subsidiary shall be deemed a separate Offering, even if the dates and other terms of the applicable
Offering Periods of each such Offering are identical, and the provisions of the Plan will separately apply to each Offering. To the extent
permitted by Treas. Reg. § 1.423-2(a)(1), the terms of each separate Offering under the Section 423 Component need not be identical,
provided that the terms of the Section 423 Component and an Offering thereunder together satisfy Treas. Reg. § 1.423-2(a)(2) and
(a)(3).

 

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 2.17            “Offering Document” has the meaning given to such term in Section 4.1.

 

 2.18            “Offering Period” has the meaning given to such term in Section 4.1.

 

2.19           “Ordinary
Shares” means Ordinary Shares, no par value, of the Company and such other securities of the Company that may be substituted
therefore.

 

2.20           
“Parent” means any corporation, other than the Company, in an unbroken chain of corporations ending with
the Company if, at the time of the determination, each of the corporations other than the Company owns shares possessing 50% or more of
the total combined voting power of all classes of shares in one of the other corporations in such chain.

 

2.21           
“Participant” means any Eligible Employee who has executed a subscription agreement and been granted
rights to purchase Shares pursuant to this Plan.

 

2.22           
“Payday” means the regular and recurring established day for payment of Compensation to an Employee of
the Company or any Designated Subsidiary.

 

2.23           
“Plan” means this 2021 Employee Share Purchase Plan, including both the Section 423 Component and Non-Section
423 Component and any other sub-plans or appendices hereto, as amended from time to time.

 

2.24           
“Purchase Date” means the last Trading Day of each Offering Period or such other date as determined by
the Administrator and set forth in the Offering Document.

 

2.25           
“Purchase Price” means the purchase price designated by the Administrator in the applicable Offering
Document (which purchase price, for purposes of the Section 423 Component, shall not be less than 85% of the Fair Market Value of a Share
on the Enrollment Date or on the Purchase Date, whichever is lower); provided, however, that, in the event no purchase price
is designated by the Administrator in the applicable Offering Document, the purchase price for the Offering Periods covered by such Offering
Document shall be 85% of the Fair Market Value of a Share on the Enrollment Date or on the Purchase Date, whichever is lower; provided,
further, that the Purchase Price may be adjusted by the Administrator pursuant to Article VIII and shall not be less than the par
value of a Share (if any).

 

2.26           
“Section 423 Component” means those Offerings under the Plan, together with the sub- plans, appendices,
rules or procedures, if any, adopted by the Administrator as a part of this Plan, in each case, pursuant to which rights to purchase Shares
during an Offering Period may be granted to Eligible Employees that are intended to satisfy the requirements for rights to purchase Shares
granted pursuant to an “employee stock purchase plan” that are set forth under Section 423 of the Code.

 

 2.27            “Securities Act” means the U.S. Securities Act of 1933, as amended.

 

 2.28            “Share” means an Ordinary Share.

 

2.29            “Subsidiary”
means any corporation, other than the Company, in an unbroken chain of corporations beginning with the Company if, at the time of
the determination, each of the corporations other than the last corporation in an unbroken chain owns shares possessing 50% or more
of the total combined voting power of all classes of shares in one of the other corporations in such chain; provided,
however, that a limited liability company or partnership may be treated as a Subsidiary to the extent either (a) such entity is
treated as a disregarded entity under Treasury Regulation Section 301.7701-3(a) by reason of the Company or any other Subsidiary
that is a corporation being the sole owner of such entity, or (b) such entity elects to be classified as a corporation under
Treasury Regulation Section 301.7701-3(a) and such entity would otherwise qualify as a Subsidiary. In addition, with respect to the
Non-Section 423 Component, Subsidiary shall include any corporate or non-corporate entity in which the Company has a direct or
indirect equity interest or significant business relationship.

 

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2.30            “Trading Day” means a day on which national stock exchanges in the United States are open for trading.

 

 2.31            “Treas. Reg.” means U.S. Department of the Treasury regulations.

 

ARTICLE III.

SHARES SUBJECT TO THE PLAN

 

3.1              
Number of Shares. Subject to Article VIII, the aggregate number of Shares that may be issued pursuant to rights granted
under the Plan shall be 194,625 Shares. In addition to the foregoing, subject to Article VIII, on the first day of each calendar year
beginning on January 1, 2022 and ending on and including January 1, 2031, the number of Shares available for issuance under the Plan shall
be increased by that number of Shares equal to the lesser of (a) 1% of the Shares outstanding on the last day of the immediately preceding
calendar year, as determined on a fully diluted basis, and (b) such smaller number of Shares as may be determined by the Board. If any
right granted under the Plan shall for any reason terminate without having been exercised, the Shares not purchased under such right shall
again become available for issuance under the Plan. Notwithstanding anything in this Section 3.1 to the contrary, the number of Shares
that may be issued or transferred pursuant to the rights granted under the Section 423 Component of the Plan shall not exceed an aggregate
of 10,000,000 Shares, subject to Article VIII.

 

3.2              
Shares Distributed. Any Shares distributed pursuant to the Plan may consist, in whole or in part, of authorized and unissued
Shares, treasury shares or Shares purchased on the open market.

 

ARTICLE IV.

OFFERING PERIODS; OFFERING
DOCUMENTS; PURCHASE DATES

 

4.1              
Offering Periods. The Administrator may from time to time grant or provide for the grant of rights to purchase Shares under
the Plan to Eligible Employees during one or more periods (each, an “Offering Period”) selected by the Administrator.
The terms and conditions applicable to each Offering Period shall be set forth in an “Offering Document” adopted
by the Administrator, which Offering Document shall be in such form and shall contain such terms and conditions as the Administrator shall
deem appropriate and shall be incorporated by reference into and made part of the Plan and shall be attached hereto as part of the Plan.
The provisions of separate Offerings or Offering Periods under the Plan need not be identical.

 

4.2              
Offering Documents. Each Offering Document with respect to an Offering Period shall specify (through incorporation of the
provisions of this Plan by reference or otherwise):

 

(a)           the length
of the Offering Period, which period shall not exceed twenty-seven months;

 

(b)         
the maximum number of Shares that may be purchased by any Eligible Employee during such Offering Period, which, in the absence
of a contrary designation by the Administrator, shall be 1,000 Shares or, if lesser and with respect to the Section 423 Component only,
the number of Shares equal to $25,000 divided by the Fair Market Value of a Share on the Enrollment Date, which price shall be adjusted
if the price per Share is adjusted pursuant to Article VIII; and

 

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(c)           such
other provisions as the Administrator determines are appropriate, subject to the Plan.

 

ARTICLE
V.

ELIGIBILITY AND PARTICIPATION

 

5.1              
Eligibility. Any Eligible Employee who shall be employed by the Company or a Designated Subsidiary on a given Enrollment
Date for an Offering Period shall be eligible to participate in the Plan during such Offering Period, subject to the requirements of this
Article V and, for the Section 423 Component, the limitations imposed by Section 423(b) of the Code.

 

 5.2               Enrollment in Plan.

 

(a)          Except
as otherwise set forth in an Offering Document or determined by the Administrator, an Eligible Employee may become a Participant in the
Plan for an Offering Period by delivering a subscription agreement to the Company by such time prior to the Enrollment Date for such
Offering Period (or such other date specified in the Offering Document) designated by the Administrator and in such form as the Company
provides.

 

(b)          Each subscription agreement shall designate a whole percentage of such Eligible Employee’s Compensation to be withheld by
the Company or the Designated Subsidiary employing such Eligible Employee on each Payday during the Offering Period as payroll deductions
under the Plan. The percentage of Compensation designated by an Eligible Employee may not be less than 1 % and may not be more than the
maximum percentage specified by the Administrator in the applicable Offering Document (which percentage shall be 15 % in the absence of
any such designation) as payroll deductions. The payroll deductions made for each Participant shall be credited to an account for such
Participant under the Plan and shall be deposited with the general funds of the Company. Unless determined otherwise by the Administrator,
all payroll deductions in respect of the Non-Section 423 Component for Employees shall be made only by after-tax payroll deductions by
the Company or Designated Subsidiary.

 

(c)           A
Participant may increase or decrease the percentage of Compensation designated in his or her subscription agreement, subject to the limits
of this Section 5.2, or may suspend his or her payroll deductions, at any time during an Offering Period; provided, however,
that the Administrator may limit the number of changes a Participant may make to his or her payroll deduction elections during each Offering
Period in the applicable Offering Document (and in the absence of any specific designation by the Administrator, a Participant shall
be allowed to decrease or increase his or her payroll deduction elections one time during each Offering Period). Any such change or suspension
of payroll deductions shall be effective with the first full payroll period following five business days after the Company’s receipt
of the new subscription agreement (or such shorter or longer period as may be specified by the Administrator in the applicable Offering
Document). In the event a Participant suspends his or her payroll deductions, such Participant’s cumulative payroll deductions
prior to the suspension shall remain in his or her account and shall be applied to the purchase of Shares on the next occurring Purchase
Date and shall not be paid to such Participant unless he or she withdraws from participation in the Plan pursuant to Article VII.

 

(d)               
Except as otherwise set forth in an Offering Document or determined by the Administrator, a Participant may participate in the
Plan only by means of payroll deduction and may not make contributions by lump sum payment for any Offering Period.

 

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5.3              Payroll
Deductions. Except as otherwise provided in the applicable Offering Document, payroll deductions for a Participant shall
commence on the first Payday following the Enrollment Date and shall end on the last Payday in the Offering Period to which the
Participant’s authorization is applicable, unless sooner terminated by the Participant as provided in Article VII or suspended
by the Participant or the Administrator as provided in Section 5.2 and Section 5.6, respectively. Notwithstanding any other
provisions of the Plan to the contrary, in non-U.S. jurisdictions where participation in the Plan through payroll deductions is
prohibited, the Administrator may provide that an Eligible Employee may elect to participate through contributions to the
Participant’s account under the Plan in a form acceptable to the Administrator in lieu of or in addition to payroll
deductions; provided, however, that, for any Offering under the Section 423 Component, the Administrator shall take
into consideration any limitations under Section 423 of the Code when applying an alternative method of contribution.

 

5.4              Effect of Enrollment. A Participant’s completion of a subscription agreement will enroll such Participant in the Plan
for each subsequent Offering Period on the terms contained therein until the Participant either submits a new subscription agreement,
withdraws from participation under the Plan as provided in Article VII or otherwise becomes ineligible to participate in the Plan.

 

5.5              Limitation
on Purchase of Shares. An Eligible Employee may be granted rights under the Section 423 Component only if such rights, together with
any other rights granted to such Eligible Employee under “employee stock purchase plans” of the Company, any Parent or any
Subsidiary, as specified by Section 423(b)(8) of the Code, do not permit such employee’s rights to purchase shares of the Company
or any Parent or Subsidiary to accrue at a rate that exceeds $25,000 of the fair market value of such shares (determined as of the first
day of the Offering Period during which such rights are granted) for each calendar year in which such rights are outstanding at any time.
This limitation shall be applied in accordance with Section 423(b)(8) of the Code.

 

5.6              Suspension
of Payroll Deductions. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section
5.5 (with respect to the Section 423 Component) or the other limitations set forth in this Plan, a Participant’s payroll deductions
may be suspended by the Administrator at any time during an Offering Period. The balance of the amount credited to the account of each
Participant that has not been applied to the purchase of Shares by reason of Section 423(b)(8) of the Code, Section 5.5 or the other
limitations set forth in this Plan shall be paid to such Participant in one lump sum in cash as soon as reasonably practicable after
the Purchase Date.

 

5.7              Non-U.S.
Employees. In order to facilitate participation in the Plan, the Administrator may provide for such special terms applicable to Participants
who are citizens or residents of a non-U.S. jurisdiction, or who are employed by a Designated Subsidiary outside of the United States,
as the Administrator may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Except as permitted
by Section 423 of the Code, with respect to the Section 423 Component, such special terms may not be more favorable than the terms of
rights granted under the Section 423 Component to Eligible Employees who are residents of the United States. Such special terms may be
set forth in an addendum to the Plan in the form of an appendix or sub-plan (which appendix or sub-plan may be designed to govern Offerings
under the Section 423 Component or the Non-Section 423 Component, as determined by the Administrator). To the extent that the terms and
conditions set forth in an appendix or sub-plan conflict with any provisions of the Plan, the provisions of the appendix or sub-plan
shall govern. The adoption of any such appendix or sub-plan shall be pursuant to Section 11.2(f). Without limiting the foregoing, the
Administrator is specifically authorized to adopt rules and procedures, with respect to Participants who are non-U.S. nationals or employed
in non-U.S. jurisdictions, regarding the exclusion of particular Subsidiaries from participation in the Plan, eligibility to participate,
the definition of Compensation, handling of payroll deductions or other contributions by Participants, payment of interest, conversion
of local currency, data privacy security, payroll tax, withholding procedures, establishment of bank or trust accounts to hold payroll
deductions or contributions.

 

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5.8              Leave of Absence. During leaves of absence approved by the Company meeting the requirements of Treasury Regulation Section
1.421-1(h)(2) under the Code, a Participant may continue participation in the Plan by making cash payments to the Company on his or her
normal Payday equal to the Participant’s authorized payroll deduction.

 

ARTICLE VI.

GRANT AND EXERCISE OF RIGHTS

 

6.1             Grant
of Rights. On the Enrollment Date of each Offering Period, each Eligible Employee participating in such Offering Period shall be
granted a right to purchase the maximum number of Shares specified under Section 4.2, subject to the limits in Section 5.5, and shall
have the right to buy, on each Purchase Date during such Offering Period (at the applicable Purchase Price), such number of whole Shares
as is determined by dividing (a) such Participant’s payroll deductions accumulated prior to such Purchase Date and retained in
the Participant’s account as of the Purchase Date, by (b) the applicable Purchase Price (rounded down to the nearest Share). The
right shall expire on the last day of the Offering Period.

 

6.2             Exercise
of Rights. On each Purchase Date, each Participant’s accumulated payroll deductions and any other additional payments specifically
provided for in the applicable Offering Document will be applied to the purchase of whole Shares, up to the maximum number of Shares
permitted pursuant to the terms of the Plan and the applicable Offering Document, at the Purchase Price. No fractional Shares shall be
issued upon the exercise of rights granted under the Plan, unless the Offering Document specifically provides otherwise. Any cash in
lieu of fractional Shares remaining after the purchase of whole Shares upon exercise of a purchase right will be credited to a Participant’s
account and carried forward and applied toward the purchase of whole Shares for the next following Offering Period. Shares issued pursuant
to the Plan may be evidenced in such manner as the Administrator may determine and may be issued in certificated form or issued pursuant
to book-entry procedures.

 

6.3          
  Pro Rata Allocation of Shares. If the Administrator determines that, on a given Purchase Date, the number of Shares with
respect to which rights are to be exercised may exceed (a) the number of Shares that were available for issuance under the Plan on the
Enrollment Date of the applicable Offering Period, or (b) the number of Shares available for issuance under the Plan on such Purchase
Date, the Administrator may in its sole discretion provide that the Company shall make a pro rata allocation of the Shares available for
purchase on such Enrollment Date or Purchase Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine
in its sole discretion to be equitable among all Participants for whom rights to purchase Shares are to be exercised pursuant to this
Article VI on such Purchase Date, and shall either (i) continue all Offering Periods then in effect, or (ii) terminate any or all Offering
Periods then in effect pursuant to Article IX. The Company may make pro rata allocation of the Shares available on the Enrollment Date
of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance
under the Plan by the Company’s shareholders subsequent to such Enrollment Date. The balance of the amount credited to the account
of each Participant that has not been applied to the purchase of Shares shall be paid to such Participant in one lump sum in cash as soon
as reasonably practicable after the Purchase Date or such earlier date as determined by the Administrator.

 

6.4              Withholding.
At the time a Participant’s rights under the Plan are exercised, in whole or in part, or at the time some or all of the Shares
issued under the Plan is disposed of, the Participant must make adequate provision for the Company’s federal, state, or other tax
withholding obligations, if any, that arise upon the exercise of the right or the disposition of the Shares. At any time, the Company
may, but shall not be obligated to, withhold from the Participant’s compensation or Shares received pursuant to the Plan the amount
necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of Shares by the Participant.

 

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6.5             
Conditions to Issuance of Shares. The Company shall not be required to issue or deliver any certificate or certificates
for, or make any book entries evidencing, Shares purchased upon the exercise of rights under the Plan prior to fulfillment of all of the
following conditions: (a) the admission of such Shares to listing on all stock exchanges, if any, on which the Shares are then listed;
(b) the completion of any registration or other qualification of such Shares under any state or federal law or under the rulings or regulations
of the Securities and Exchange Commission or any other governmental regulatory body, that the Administrator shall, in its absolute discretion,
deem necessary or advisable; (c) the obtaining of any approval or other clearance from any state or federal governmental agency that the
Administrator shall, in its absolute discretion, determine to be necessary or advisable; (d) the payment to the Company of all amounts
that it is required to withhold under federal, state or local law upon exercise of the rights, if any; and (e) the lapse of such reasonable
period of time following the exercise of the rights as the Administrator may from time to time establish for reasons of administrative
convenience.

 

ARTICLE
VII.

WITHDRAWAL; CESSATION OF ELIGIBILITY

 

7.1             
Withdrawal. A Participant may withdraw all but not less than all of the payroll deductions credited to his or her account
and not yet used to exercise his or her rights under the Plan at any time by giving written notice to the Company in a form acceptable
to the Company no later than one week prior to the end of the Offering Period. All of the Participant’s payroll deductions credited
to his or her account during an Offering Period shall be paid to such Participant as soon as reasonably practicable after receipt of notice
of withdrawal and such Participant’s rights for the Offering Period shall be automatically terminated, and no further payroll deductions
for the purchase of Shares shall be made for such Offering Period. If a Participant withdraws from an Offering Period, payroll deductions
shall not resume at the beginning of the next Offering Period unless the Participant timely delivers to the Company a new subscription
agreement.

 

7.2            
Future Participation. A Participant’s withdrawal from an Offering Period shall not have any effect upon his or her
eligibility to participate in any similar plan that may hereafter be adopted by the Company or a Designated Subsidiary or in subsequent
Offering Periods that commence after the termination of the Offering Period from which the Participant withdraws.

 

7.3             Cessation
of Eligibility. Upon a Participant’s ceasing to be an Eligible Employee for any reason, he or she shall be deemed to have
elected to withdraw from the Plan pursuant to this Article VII and the payroll deductions credited to such Participant’s
account during the Offering Period shall be paid to such Participant or, in the case of his or her death, to the person or persons
entitled thereto under Section 12.4, as soon as reasonably practicable, and such Participant’s rights for the Offering Period
shall be automatically terminated. If a Participant transfers employment from the Company or any Designated Subsidiary participating
in the Section 423 Component to any Designated Subsidiary or the Company (as the case may be) participating in the Non-Section 423
Component, such transfer shall not be treated as a termination of employment, but the Participant shall immediately cease to
participate in the Section 423 Component; however, any contributions made for the Offering Period in which such transfer occurs
shall be transferred to the Non-Section 423 Component, and such Participant shall immediately join the then- current Offering under
the Non-Section 423 Component upon the same terms and conditions in effect for the Participant’s participation in the Section
423 Component, except for such modifications otherwise applicable for Participants in such Offering. A Participant who transfers
employment from any Designated Subsidiary participating in the Non-Section 423 Component to the Company or any Designated Subsidiary
participating in the Section 423 Component shall not be treated as terminating the Participant’s employment and shall remain a
Participant in the Non-Section 423 Component until the earlier of (i) the end of the current Offering Period under the Non-Section
423 Component or (ii) the Enrollment Date of the first Offering Period in which the Participant is eligible to participate following
such transfer. Notwithstanding the foregoing, the Administrator may establish different rules to govern transfers of employment
between entities participating in the Section 423 Component and the Non-Section 423 Component, consistent with the applicable
requirements of Section 423 of the Code.

 

    10 

     

    

 

ARTICLE
VIII.

ADJUSTMENTS UPON CHANGES IN SHARES

 

8.1              Changes in Capitalization. Subject to Section 8.3, in the event that the Administrator determines that any dividend or other
distribution (whether in the form of cash, Shares, other securities, or other property), change in control, reorganization, merger, amalgamation,
consolidation, combination, repurchase, redemption, recapitalization, liquidation, dissolution, or sale, transfer, exchange or other disposition
of all or substantially all of the assets of the Company, or sale or exchange of Shares or other securities of the Company, issuance of
warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event, as determined
by the Administrator, affects the Shares such that an adjustment is determined by the Administrator to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended by the Company to be made available under the Plan or with respect
to any outstanding purchase rights under the Plan, the Administrator shall make equitable adjustments, if any, to reflect such change
with respect to (a) the aggregate number and type of Shares (or other securities or property) that may be issued under the Plan (including,
but not limited to, adjustments of the limitations in Section 3.1 and the limitations established in each Offering Document pursuant to
Section 4.2 on the maximum number of Shares that may be purchased); (b) the class(es) and number of Shares and price per Share subject
to outstanding rights; and (c) the Purchase Price with respect to any outstanding rights.

 

8.2            
Other Adjustments. Subject to Section 8.3, in the event of any transaction or event described in Section 8.1 or any unusual
or nonrecurring transactions or events affecting the Company, any Affiliate of the Company, or the financial statements of the Company
or any Affiliate, or of changes in Applicable Law or accounting principles, the Administrator, in its discretion, and on such terms and
conditions as it deems appropriate, is hereby authorized to take any one or more of the following actions whenever the Administrator determines
that such action is appropriate in order to prevent the dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan or with respect to any right under the Plan, to facilitate such transactions or events or to give effect to such
changes in laws, regulations or principles:

 

(a)           
To provide for either (i) termination of any outstanding right in exchange for an amount of cash, if any, equal to the amount that
would have been obtained upon the exercise of such right had such right been currently exercisable or (ii) the replacement of such outstanding
right with other rights or property selected by the Administrator in its sole discretion;

 

(b)          
To provide that the outstanding rights under the Plan shall be assumed by the successor or survivor corporation, or a parent or
subsidiary thereof, or shall be substituted for by similar rights covering the shares of the successor or survivor corporation, or a parent
or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices;

 

(c)          
To make adjustments in the number and type of Shares (or other securities or property) subject to outstanding rights under the
Plan and/or in the terms and conditions of outstanding rights and rights that may be granted in the future;

 

    11 

     

    

 

(d)         
To provide that Participants’ accumulated payroll deductions may be used to purchase Shares prior to the next occurring Purchase
Date on such date as the Administrator determines in its sole discretion and the Participants’ rights under the ongoing Offering
Period(s) shall be terminated; and

 

 (e)          To provide that all outstanding rights shall terminate without being exercised.

 

8.3            
No Adjustment Under Certain Circumstances. Unless determined otherwise by the Administrator, no adjustment or action described
in this Article VIII or in any other provision of the Plan shall be authorized to the extent that such adjustment or action would cause
the Section 423 Component of the Plan to fail to satisfy the requirements of Section 423 of the Code.

 

8.4             No Other Rights. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision
or consolidation of shares of any class, the payment of any dividend, any increase or decrease in the number of shares of any class or
any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly provided in the Plan
or pursuant to action of the Administrator under the Plan, no issuance by the Company of shares of any class, or securities convertible
into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares subject
to outstanding rights under the Plan or the Purchase Price with respect to any outstanding rights.

 

ARTICLE IX.

AMENDMENT, MODIFICATION AND TERMINATION

 

9.1            
Amendment, Modification and Termination. The Administrator may amend, suspend or terminate the Plan at any time and from
time to time; provided, however, that approval of the Company’s shareholders shall be required to amend the
Plan to: (a) increase the aggregate number, or change the type, of shares that may be sold pursuant to rights under the Plan under Section
3.1 (other than an adjustment as provided by Article VIII) or (b) change the corporations or classes of corporations whose employees may
be granted rights under the Plan.

 

9.2            
Certain Changes to Plan. Without shareholder consent and without regard to whether any Participant rights may be considered
to have been adversely affected (and, with respect to the Section 423 Component of the Plan, after taking into account Section 423 of
the Code), the Administrator shall be entitled to change the Offering Periods, add or revise Offering Period share limits, limit the frequency
and/or number of changes in the amount withheld from Compensation during an Offering Period, establish the exchange ratio applicable to
amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a Participant
in order to adjust for delays or mistakes in the Company’s processing of withholding elections, establish reasonable waiting and
adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Shares for each Participant
properly correspond with amounts withheld from the Participant’s Compensation, and establish such other limitations or procedures
as the Administrator determines in its sole discretion to be advisable that are consistent with the Plan.

 

9.3           
Actions In the Event of Unfavorable Financial Accounting Consequences. In the event the Administrator determines that the
ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Administrator may, in its discretion and,
to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including, but not limited
to:

 

(a)          
altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase
Price;

 

    12 

     

    

 

(b)          
shortening any Offering Period so that the Offering Period ends on a new Purchase Date, including an Offering Period underway at
the time of the Administrator action; and

 

 (c)           allocating Shares.

 

Such modifications
or amendments shall not require shareholder approval or the consent of any Participant.

 

9.4             
Payments Upon Termination of Plan. Upon termination of the Plan, the balance in each Participant’s Plan account shall
be refunded as soon as practicable after such termination, without any interest thereon, or the Offering Period may be shortened so that
the purchase of Shares occurs prior to the termination of the Plan.

 

ARTICLE
X.

TERM OF PLAN

 

The Plan shall
become effective on the Effective Date. The effectiveness of the Plan shall be subject to approval of the Plan by the Company’s
shareholders within twelve months before or after the date the Plan is first approved by the Board. No right may be granted under the
Plan prior to such shareholder approval. No rights may be granted under the Plan during any period of suspension of the Plan or after
termination of the Plan.

 

ARTICLE
XI.

ADMINISTRATION

 

11.1          
Administrator. Unless otherwise determined by the Board, the Administrator of the Plan shall be the Compensation Committee
of the Board (or another committee or a subcommittee of the Board to which the Board delegates administration of the Plan). The Board
may at any time vest in the Administrator any authority or duties for administration of the Plan. The Administrator may delegate administrative
tasks under the Plan to the services of an Agent or Employees to assist in the administration of the Plan, including establishing and
maintaining an individual securities account under the Plan for each Participant.

 

11.2         
Authority of Administrator. The Administrator shall have the power, subject to, and within the limitations of, the express
provisions of the Plan:

 

(a)          
To determine when and how rights to purchase Shares shall be granted and the provisions of each offering of such rights (which
need not be identical).

 

(b)         
To designate from time to time which Subsidiaries of the Company shall be Designated Subsidiaries, which designation may be made
without the approval of the shareholders of the Company.

 

(c)         
To impose a mandatory holding period pursuant to which Employees may not dispose of or transfer Shares purchased under the Plan
for a period of time determined by the Administrator in its discretion.

 

(d)        
To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke rules and regulations for its
administration. The Administrator, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan, in a
manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

 

    13 

     

    

 

(e)            To amend, suspend or terminate the Plan as provided in Article IX.

 

(f)          
Generally, to exercise such powers and to perform such acts as the Administrator deems necessary or expedient to promote the best
interests of the Company and its Subsidiaries and to carry out the intent that the Plan be treated as an “employee stock purchase
plan” within the meaning of Section 423 of the Code for the Section 423 Component.

 

(g)         
The Administrator may adopt sub-plans applicable to particular Designated Subsidiaries or locations, which sub-plans may be designed
to be outside the scope of Section 423 of the Code. The rules of such sub-plans may take precedence over other provisions of this Plan,
with the exception of Section 3.1 hereof, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall
govern the operation of such sub-plan.

 

11.3           
Decisions Binding. The Administrator’s interpretation of the Plan, any rights granted pursuant to the Plan, any subscription
agreement and all decisions and determinations by the Administrator with respect to the Plan are final, binding, and conclusive on all
parties.

 

ARTICLE
XII.

MISCELLANEOUS

 

12.1          
Restriction upon Assignment. A right granted under the Plan shall not be transferable other than by will or the applicable
laws of descent and distribution, and is exercisable during the Participant’s lifetime only by the Participant. Except as provided
in Section 12.4 hereof, a right under the Plan may not be exercised to any extent except by the Participant. The Company shall not recognize
and shall be under no duty to recognize any assignment or alienation of the Participant’s interest in the Plan, the Participant’s
rights under the Plan or any rights thereunder.

 

12.2          
Rights as a Shareholder. With respect to Shares subject to a right granted under the Plan, a Participant shall not be deemed
to be a shareholder of the Company, and the Participant shall not have any of the rights or privileges of a shareholder, until such Shares
have been issued to the Participant or his or her nominee following exercise of the Participant’s rights under the Plan. No adjustments
shall be made for dividends (ordinary or extraordinary, whether in cash securities, or other property) or distribution or other rights
for which the record date occurs prior to the date of such issuance, except as otherwise expressly provided herein or as determined by
the Administrator.

 

12.3           
Interest. No interest shall accrue on the payroll deductions or contributions of a Participant under the Plan.

 

 12.4           Designation of Beneficiary.

 

(a)          
A Participant may, in the manner determined by the Administrator, file a written designation of a beneficiary who is to receive
any Shares and/or cash, if any, from the Participant’s account under the Plan in the event of such Participant’s death subsequent
to a Purchase Date on which the Participant’s rights are exercised but prior to delivery to such Participant of such Shares and
cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s
account under the Plan in the event of such Participant’s death prior to exercise of the Participant’s rights under the Plan.
If the Participant is married and resides in a community property state, a designation of a person other than the Participant’s
spouse as his or her beneficiary shall not be effective without the prior written consent of the Participant’s spouse.

 

    14 

     

    

 

(b)          
Such designation of beneficiary may be changed by the Participant at any time by written notice to the Company. In the event of
the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such Participant’s
death, the Company shall deliver such Shares and/or cash to the executor or administrator of the estate of the Participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares
and/or cash to the spouse or to any one or more dependents or relatives of the Participant, or if no spouse, dependent or relative is
known to the Company, then to such other person as the Company may designate.

 

12.5          
Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall
be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by
the Company for the receipt thereof.

 

12.6         
Equal Rights and Privileges. Subject to Section 5.7, all Eligible Employees will have equal rights and privileges under
the Section 423 Component so that the Section 423 Component of this Plan qualifies as an “employee stock purchase plan” within
the meaning of Section 423 of the Code. Subject to Section 5.7, any provision of the Section 423 Component that is inconsistent with Section
423 of the Code will, without further act or amendment by the Company, the Board or the Administrator, be reformed to comply with the
equal rights and privileges requirement of Section 423 of the Code. Eligible Employees participating in the Non-Section 423 Component
need not have the same rights and privileges as other Eligible Employees participating in the Non-Section 423 Component or as Eligible
Employees participating in the Section 423 Component.

 

12.7         
Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

12.8         
Reports. Statements of account shall be given to Participants at least annually, which statements shall set forth the amounts
of payroll deductions, the Purchase Price, the number of Shares purchased and the remaining cash balance, if any.

 

12.9          
No Employment Rights. Nothing in the Plan shall be construed to give any person (including any Eligible Employee or Participant)
the right to remain in the employ of the Company or any Parent or Subsidiary or affect the right of the Company or any Parent or Subsidiary
to terminate the employment of any person (including any Eligible Employee or Participant) at any time, with or without cause.

 

12.10        
Notice of Disposition of Shares. Each Participant shall give prompt notice to the Company of any disposition or other transfer
of any Shares purchased upon exercise of a right under the Section 423 Component of the Plan if such disposition or transfer is made:
(a) within two years from the Enrollment Date of the Offering Period in which the Shares were purchased or (b) within one year after the
Purchase Date on which such Shares were purchased. Such notice shall specify the date of such disposition or other transfer and the amount
realized, in cash, other property, assumption of indebtedness or other consideration, by the Participant in such disposition or other
transfer.

 

12.11        
Governing Law. The Plan and any agreements hereunder shall be administered, interpreted and enforced in accordance with
the laws of the State of Israel, disregarding any state’s choice of law principles requiring the application of a jurisdiction’s
laws other than the State of Israel. Certain definitions, which refer to the laws of such jurisdiction, shall be construed in accordance
with other such laws. The competent courts located in Tel-Aviv-Jaffa, Israel shall have exclusive jurisdiction over any dispute arising
out of or in connection with this Plan and any award granted hereunder.

 

    15 

     

    

 

12.12        
Electronic Forms. To the extent permitted by Applicable Law and in the discretion of the Administrator, an Eligible Employee
may submit any form or notice as set forth herein by means of an electronic form approved by the Administrator. Before the commencement
of an Offering Period, the Administrator shall prescribe the time limits within which any such electronic form shall be submitted to the
Administrator with respect to such Offering Period in order to be a valid election.

 

* * * * *Exhibit
10.6

 

 

 

COMPENSATION
POLICY

 

MONDAY.COM
LTD.

 

Compensation
Policy for Executive Officers and Directors

 

(As
Adopted on [_____], 2021)

 

     

     

    

 

A.
Overview and Objectives

 

		1.	Introduction
                                         

 

This
document sets forth the Compensation Policy for Executive Officers and Directors (this “Compensation Policy”
or “Policy”) of monday.com Ltd. (“monday” or the “Company”), in accordance
with the requirements of the Companies Law, 5759-1999 (the “Companies Law”).

 

Compensation
is a key component of monday’s overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals
that will enhance monday’s value and otherwise assist monday to reach its business and financial long-term goals. Accordingly,
the structure of this Policy is established to tie the compensation of each officer to monday’s goals and performance.

 

For
purposes of this Policy, “Executive Officers” shall mean “Office Holders” as such term is defined in Section
1 of the Companies Law, excluding, unless otherwise expressly indicated herein, monday’s directors.

 

This
policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions
of applicable law to the extent not permitted.

 

This
Policy shall apply to compensation agreements and arrangements which will be approved after the date on which this Policy is adopted
and shall serve as monday’s Compensation Policy for five (5) years, commencing as of its adoption, unless amended earlier.

 

The
Compensation Committee and the Board of Directors of monday (the “Compensation Committee” and the “Board”,
respectively) shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law.

 

		2.	Objectives
                                         

 

monday’s
objectives and goals in setting this Policy are to attract, motivate and retain highly experienced leaders who will contribute
to monday’s success and enhance shareholder value, while demonstrating professionalism in a highly achievement-oriented
culture that is based on merit and rewards excellent performance in the long term, and embedding monday’s core values as
part of a motivated behavior. To that end, this Policy is designed, among others:

 

		2.1.	To
                                         closely align the interests of the Executive Officers with those of monday’s shareholders
                                         in order to enhance shareholder value;

 

		2.2.	To
                                         align a significant portion of the Executive Officers’ compensation with monday’s
                                         short and long-term goals and performance;

 

		2.3.	To
                                         provide the Executive Officers with a structured compensation package, including competitive
                                         salaries, performance-motivating cash and equity incentive programs and benefits, and
                                         to be able to present to each Executive Officer an opportunity to advance in a growing
                                         organization;

 

		2.4.	To
                                         strengthen the retention and the motivation of Executive Officers in the long-term;

 

		2.5.	To
                                         provide appropriate awards in order to incentivize superior individual excellency and
                                         corporate performance; and

 

		2.6.	To
                                         maintain consistency in the way Executive Officers are compensated.

 

		3.	Compensation
                                         Instruments 

 

Compensation
instruments under this Policy may include the following:

 

		3.1.	Base
                                         salary;

 

    2 

     

    

 

		3.2.	Benefits;

 

		3.3.	Cash
                                         bonuses;

 

		3.4.	Equity
                                         based compensation;

 

		3.5.	Change
                                         of control terms; and

 

		3.6.	Retirement
                                         and termination terms.

 

		4.	Overall
                                         Compensation - Ratio Between Fixed and Variable Compensation 

 

		4.1.	This
                                         Policy aims to balance the mix of “Fixed Compensation” (comprised of base
                                         salary and benefits) and “Variable Compensation” (comprised of cash bonuses
                                         and equity-based compensation) in order to, among other things, appropriately incentivize
                                         Executive Officers to meet monday’s short and long-term goals while taking into
                                         consideration the Company’s need to manage a variety of business risks.

 

		4.2.	The
                                         total annual target bonus and equity-based compensation per vesting annum (based on the
                                         fair market value at the time of grant calculated on a liner basis) of each Executive
                                         Officer shall not exceed 95% of such Executive Officer’s total compensation package
                                         for such year.

 

		5.	Inter-Company
                                         Compensation Ratio

 

		5.1.	In
                                         the process of drafting and updating this Policy, monday’s Board and Compensation
                                         Committee have examined the ratio between employer cost associated with the engagement
                                         of the Executive Officers, including directors, and the average and median employer cost
                                         associated with the engagement of monday’s other employees (including contractor
                                         employees as defined in the Companies Law) (the “Ratio”).

 

		5.2.	The
                                         possible ramifications of the Ratio on the daily working environment in monday were examined
                                         and will continue to be examined by monday from time to time in order to ensure that
                                         levels of executive compensation, as compared to the overall workforce will not have
                                         a negative impact on work relations in monday.

 

B.
Base Salary and Benefits

 

		6.	Base
                                         Salary 

 

		6.1.	A
                                         base salary provides stable compensation to Executive Officers and allows monday to attract
                                         and retain competent executive talent and maintain a stable management team. The base
                                         salary varies among Executive Officers, and is individually determined according to the
                                         educational background, prior vocational experience, qualifications, company’s
                                         role, business responsibilities and the past performance of each Executive Officer.

 

		6.2.	Since
                                         a competitive base salary is essential to monday’s ability to attract and retain
                                         highly skilled professionals, monday will seek to establish a base salary that is competitive
                                         with base salaries paid to Executive Officers in a peer group of other companies operating
                                         in technology sectors which are similar in their characteristics to monday’s, as
                                         much as possible, while considering, among others, such companies’ size and characteristics
                                         including their revenues, profitability rate, growth rates, market capitalization, number
                                         of employees and operating arena (in Israel or globally), the list of which shall be
                                         reviewed and approved by the Compensation Committee. To that end, monday shall utilize
                                         as a reference, comparative market data and practices, which will include a compensation
                                         survey that compares and analyses the level of the overall compensation package offered
                                         to an Executive Officer of the Company with compensation packages in similar positions
                                         (to that of the relevant officer) in such companies. Such compensation survey may be
                                         conducted internally or through an external independent consultant.

 

    3 

     

    

 

		6.3.	The
                                         Compensation Committee and the Board may periodically consider and approve base salary
                                         adjustments for Executive Officers. The main considerations for salary adjustment are
                                         similar to those used in initially determining the base salary, but may also include
                                         change of role or responsibilities, recognition for professional achievements, regulatory
                                         or contractual requirements, budgetary constraints or market trends. The Compensation
                                         Committee and the Board will also consider the previous and existing compensation arrangements
                                         of the Executive Officer whose base salary is being considered for adjustment. Any limitation
                                         herein based on the annual base salary shall be calculated based on the monthly base
                                         salary applicable at the time of consideration of the respective grant or benefit.

 

		7.	Benefits
                                         

 

		7.1.	The
                                         following benefits may be granted to the Executive Officers in order, among other things,
                                         to comply with legal requirements:

 

		7.1.1.	Vacation
                                         days in accordance with market practice;

 

		7.1.2.	Sick
                                         days in accordance with market practice;

 

		7.1.3.	Convalescence
                                         pay according to applicable law;

 

		7.1.4.	Monthly
                                         remuneration for a study fund, as allowed by applicable law and with reference to monday’s
                                         practice and the practice in peer group companies (including contributions on bonus payments);

 

		7.1.5.	monday
                                         shall contribute on behalf of the Executive Officer to an insurance policy or a pension
                                         fund, as allowed by applicable law and with reference to monday’s policies and
                                         procedures and the practice in peer group companies (including contributions on bonus
                                         payments); and

 

		7.1.6.	monday
                                         shall contribute on behalf of the Executive Officer towards work disability insurance,
                                         as allowed by applicable law and with reference to monday’s policies and procedures
                                         and to the practice in peer group companies.

 

		7.2.	Non-Israeli
                                                                                                                                                                                                                                      Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which
                                                                                                                                                                                                                                      they are employed. Such customary benefits shall be determined based on the methods described in Section 6.2 of this Policy (with
                                                                                                                                                                                                                                      the necessary changes and adjustments).

 

		7.3.	In
                                         events of relocation or repatriation of an Executive Officer to another geography, such
                                         Executive Officer may receive other similar, comparable or customary benefits as applicable
                                         in the relevant jurisdiction in which he or she is employed or additional payments to
                                         reflect adjustments in cost of living. Such benefits may include reimbursement for out-of-pocket
                                         one-time payments and other ongoing expenses, such as housing allowance, car allowance,
                                         and home leave visit, etc.

 

		7.4.	monday
                                         may offer additional benefits to its Executive Officers, which will be comparable to
                                         customary market practices, such as, but not limited to: cellular and land line phone
                                         benefits, company car and travel benefits, reimbursement of business travel including
                                         a daily stipend when traveling and other business related expenses, insurances, other
                                         benefits (such as newspaper subscriptions, academic and professional studies), etc.,
                                         provided, however, that such additional benefits shall be determined in accordance with
                                         monday’s policies and procedures.

 

C.
Cash Bonuses

 

		8.	Annual
                                         Cash Bonuses - The Objective 

 

		8.1.	Compensation
                                         in the form of an annual cash bonus is an important element in aligning the Executive
                                         Officers’ compensation with monday’s objectives and business goals. Therefore,
                                         annual cash bonuses will reflect a pay-for-performance element, with payout eligibility
                                         and levels determined based on actual business results, in addition to other factors
                                         the Compensation Committee may determine, including individual performance.

 

    4 

     

    

 

		8.2.	An
                                         annual cash bonus may be awarded to Executive Officers upon the attainment of pre-set
                                         periodical objectives and individual targets determined by the Compensation Committee
                                         (and, if required by law, by the Board) for each fiscal year, or in connection with such
                                         officer’s engagement, in case of newly hired Executive Officers, taking into account
                                         monday’s short and long-term goals, as well as its compliance and risk management
                                         policies. The Compensation Committee and the Board shall also determine applicable minimum
                                         thresholds that must be met for entitlement to the annual cash bonus (all or any portion
                                         thereof) and the formula for calculating any annual cash bonus payout, with respect to
                                         each fiscal year, for each Executive Officer. In special circumstances, as determined
                                         by the Compensation Committee and the Board (e.g., regulatory changes, significant changes
                                         in monday’s business environment, a significant organizational change, a significant
                                         merger and acquisition events etc.), the Compensation Committee and the Board may modify
                                         the objectives and/or their relative weights during the fiscal year, or may modify payouts
                                         following the conclusion of the year.

 

		8.3.	In
                                         the event the employment of an Executive Officer is terminated prior to the end of a
                                         fiscal year, the Company may (but shall not be obligated to) pay such Executive Officer
                                         an annual cash bonus (which may or may not be pro-rated).

 

		8.4.	The
                                         actual annual cash bonus to be paid to Executive Officers shall be approved by the Compensation
                                         Committee and the Board.

 

		9.	Annual
                                         Cash Bonuses - The Formula 

 

Executive
Officers other than monday's CEO

 

		9.1.	The
                                         performance objectives for the annual cash bonus of monday’s Executive Officers,
                                         other than monday's chief executive officer (the “CEO”), may be approved
                                         by monday’s CEO (in lieu of the Compensation Committee) and may be based on company,
                                         division and individual objectives. The performance measurable objectives, which include
                                         the objectives and the weight to be assigned to each achievement in the overall evaluation,
                                         may be based on business results, such as (by way of example and not by way of limitation)
                                         revenues, operating income and cash flow and may further include, divisional or personal
                                         objectives which may include operational objectives, such as (by way of example and not
                                         by way of limitation) market share, initiation of new markets and operational efficiency,
                                         customer focused objectives, project milestones objectives and investment in human capital
                                         objectives, such as (by way of example and not by way of limitation) employee satisfaction,
                                         employee retention and employee training and leadership programs. The Company may also
                                         grant annual cash bonuses to monday’s Executive Officers, other than monday's CEO,
                                         on a discretionary basis.

 

		9.2.	The
                                         target annual cash bonus that an Executive Officer, other than monday's CEO, will be
                                         entitled to receive for any given fiscal year, will not exceed 100% of such Executive
                                         Officer’s annual base salary.

 

		9.3.	The
                                         maximum annual cash bonus, including for overachievement performance, that an Executive
                                         Officer, other than monday's CEO, will be entitled to receive for any given fiscal year,
                                         will not exceed 200% of such Executive Officer’s annual base salary.

 

CEO

 

		9.4.	The
                                         annual cash bonus of monday’s CEO will be mainly based on performance measurable
                                         objectives and subject to minimum thresholds as provided in Section 8.2 above. Such performance
                                         measurable objectives will be determined annually by monday’s Compensation Committee
                                         (and, if required by law, by monday’s Board) and will be based on company and personal
                                         objectives. These performance measurable objectives, which include the objectives and
                                         the weight to be assigned to each achievement in the overall evaluation, will be based
                                         on overall company performance measures, which are based on actual financial and operational
                                         results, such as (by way of example and not by way of limitation) revenues, sales, operating
                                         income, cash flow or Company’s annual operating plan and long-term plan.

 

    5 

     

    

 

		9.5.	The
                                         less significant part of the annual cash bonus granted to monday’s CEO, and in
                                         any event not more than 30% of the annual cash bonus, may be based on a discretionary
                                         evaluation of the CEO’s overall performance by the Compensation Committee and the
                                         Board based on quantitative and qualitative criteria.

 

		9.6.	The
                                         target annual cash bonus that monday's CEO will be entitled to receive for any given
                                         fiscal year, will not exceed 100% of his or her annual base salary.

 

		9.7.	The
                                         maximum annual cash bonus including for overachievement performance that monday's CEO
                                         will be entitled to receive for any given fiscal year, will not exceed 200% of his or
                                         her annual base salary.

 

		10.	Other
                                         Bonuses 

 

		10.1.	Special
                                         Bonus. monday may grant its Executive Officers a special bonus as an award for special
                                         achievements (such as in connection with mergers and acquisitions, offerings, achieving
                                         target budget or business plan under exceptional circumstances, or special recognition
                                         in case of retirement) or as a retention award at the CEO’s discretion for Executive
                                         Officers other than monday's CEO (and in the CEO’s case, at the Compensation Committee’s
                                         and the Board’s discretion), subject to any additional approval as may be required
                                         by the Companies Law (the “Special Bonus”). Any such Special Bonus
                                         will not exceed 200% of the Executive Officer’s annual base salary. Special Bonus
                                         can be paid, in whole or in part, in equity in lieu of cash.

 

		10.2.	Signing
                                         Bonus. monday may grant a newly recruited Executive Officer a signing bonus, at the
                                         CEO’s discretion for Executive Officers other than monday's CEO (and in the CEO’s
                                         case, at the Compensation Committee’s and the Board’s discretion), subject
                                         to any additional approval as may be required by the Companies Law (the “Signing
                                         Bonus”). Any such Signing Bonus will not exceed 100% of the Executive Officer’s
                                         annual base salary.

 

		10.3.	Relocation/
                                         Repatriation Bonus. monday may grant its Executive Officers a special bonus in the
                                         event of relocation or repatriation of an Executive Officer to another geography (the
                                         “Relocation Bonus”). Any such Relocation bonus will include customary
                                         benefits associated with such relocation and its monetary value will not exceed 100%
                                         of the Executive Officer’s annual base salary.

 

		11.	Compensation
                                         Recovery (“Clawback”) 

 

		11.1.	In
                                         the event of an accounting restatement, monday shall be entitled to recover from its
                                         Executive Officers the bonus compensation or performance-based equity compensation in
                                         the amount in which such compensation exceeded what would have been paid based on the
                                         financial statements, as restated, provided that a claim is made by monday prior to the
                                         second anniversary following the filing of such restated financial statements.

 

		11.2.	Notwithstanding
                                         the aforesaid, the compensation recovery will not be triggered in the following events:

 

		11.2.1.	The
                                         financial restatement is required due to changes in the applicable financial reporting
                                         standards; or

 

		11.2.2.	The
                                         Compensation Committee has determined that Clawback proceedings in the specific case
                                         would be impossible, impractical, or not commercially or legally efficient.

 

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		11.3.	Nothing
                                         in this Section 11 derogates from any other “Clawback” or similar provisions
                                         regarding disgorging of profits imposed on Executive Officers by virtue of applicable
                                         securities laws or a separate contractual obligation.

 

D.
Equity Based Compensation 

 

		12.	The
                                         Objective 

 

		12.1.	The
                                         equity-based compensation for monday’s Executive Officers will be designed in a
                                         manner consistent with the underlying objectives of the Company in determining the base
                                         salary and the annual cash bonus, with its main objectives being to enhance the alignment
                                         between the Executive Officers’ interests with the long-term interests of monday
                                         and its shareholders, and to strengthen the retention and the motivation of Executive
                                         Officers in the long term. In addition, since equity-based awards are structured to vest
                                         over several years, their incentive value to recipients is aligned with longer-term strategic
                                         plans.

 

		12.2.	The
                                         equity-based compensation offered by monday is intended to be in a form of share options
                                         and/or other equity-based awards, such as RSUs or performance stock units, in accordance
                                         with the Company’s equity incentive plan in place as may be updated from time to
                                         time.

 

		12.3.	All
                                         equity-based incentives granted to Executive Officers (other than bonuses paid in equity
                                         in lieu of cash shall normally be subject to vesting periods in order to promote long-term
                                         retention of the awarded Executive Officers. Unless determined otherwise in a specific
                                         award agreement or in a specific compensation plan approved by the Compensation Committee
                                         and the Board, (i) grants to Executive Officers other than non-employee directors shall
                                         vest based on time, gradually over a period of at least 2-4 years, or based on performance;
                                         and (ii) grants to non-employee directors shall vest based on time, gradually over a
                                         period of at least one year, or based on performance. The exercise price of options shall
                                         be determined in accordance with monday’s policies, the main terms of which shall
                                         be disclosed in the annual report of monday. The terms of the awards may provide for
                                         the acceleration of vesting upon a change of control. Executive Officers and directors
                                         may also participate in monday's employee stock purchase program (ESPP) according to
                                         its terms.

 

		12.4.	All
                                         other terms of the equity awards shall be in accordance with monday’s incentive
                                         plans and other related practices and policies. Accordingly, the Board may, following
                                         approval by the Compensation Committee, make modifications to such awards consistent
                                         with the terms of such incentive plans, subject to any additional approval as may be
                                         required by the Companies Law.

 

		13.	General
                                         Guidelines for the Grant of Awards 

 

		13.1.	The
                                         equity-based compensation shall be granted from time to time and be individually determined
                                         and awarded according to the performance, educational background, prior business experience,
                                         qualifications, role and the personal responsibilities of the Executive Officer.

 

		13.2.	In
                                         determining the equity-based compensation granted to each Executive Officer, the Compensation
                                         Committee and the Board shall consider the factors specified in Section 13.1 above, and
                                         in any event, the equity award granted in a certain year (not including bonuses paid
                                         in equity in lieu of cash) shall not exceed: (i) with respect to an equity award with
                                         an exercise price equal to, or higher of, the fair market value1 per share
                                         (the “FMV”), 0.375%, or 0.50% in the case of a CEO, of the issued
                                         and outstanding share capital of the Company, at the time of grant; (ii) with respect
                                         to an equity award with an exercise price lower of the FMV or equals to zero, 0.187%,
                                         or 0.25% in the case of a CEO, of the issued and outstanding share capital of the Company,
                                         at the time of grant; and (iii) with respect to an annual award that combines both types
                                         of exercise price (i.e., equity awards with an exercise price equal to FMV and other
                                         equity awards with a lower, or no, exercise price), the above annual threshold shall
                                         be calculated, on a pro rata basis, to give effect to the relative portion of
                                         each type of equity awards.

 

 

 

1
The fair market value shall be equal to either: (i) for Section 102 Options, the average Company’s share price in
the 30 consecutive trading days prior to the grant date; and (ii) for any other type of awards, the closing price of the Company’s
shares on the date of grant.

 

    7 

     

    

 

E.
Retirement and Termination of Service Arrangements

 

		14.	Advanced
                                         Notice Period 

 

monday
may provide an Executive Officer, other than monday's CEO, according to his/her seniority in the Company, his/her contribution
to the Company’s goals and achievements and the circumstances of retirement and monday's CEO a prior notice of termination
of up to twelve (12) months in the case of monday's CEO and six (6) months in the case of other Executive Officers, during which
the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his/her equity-based
compensation. Such advance notice may or may not be provided in addition to severance, provided, however, that the Compensation
Committee shall take into consideration the Executive Officer’s entitlement to advance notice in establishing any entitlement
to severance and vice versa.

 

		15.	Adjustment
                                         Period 

 

monday
may provide an additional adjustment period of up to six (6) months to monday's CEO or to any other Executive Officer according
to his/her seniority in the Company, his/her contribution to the Company’s goals and achievements and the circumstances
of retirement, during which the Executive Officer may be entitled to all of the compensation elements, and to the continuation
of vesting of his/her equity-based compensation.

 

		16.	Additional
                                         Retirement and Termination Benefits 

 

monday
may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory
severance pay under Israeli labor laws), or which will be comparable to customary market practices.

 

		17.	Non-Compete
                                         Grant 

 

Upon
termination of employment and subject to applicable law, monday may grant to its Executive Officers a non-compete grant as an
incentive to refrain from competing with monday for a defined period of time. The terms and conditions of the non-compete grant
shall be decided by the Board and shall not exceed such Executive Officer’s monthly base salary multiplied by twelve (12).
The Board shall consider the existing entitlements of the Executive Officer in connection with the consideration of any non-compete
grant.

 

		18.	Limitation
                                         Retirement and Termination of Service Arrangements

 

The
total non-statutory payments under Section 14-17 above for a given Executive Officer shall not exceed the Executive Officer’s
monthly base salary multiplied by twenty-four (24). The limitation under this Section 18 does not apply to benefits and payments
provided under other chapters of this Policy.

 

F.
Exculpation, Indemnification and Insurance 

 

		19.	Exculpation
                                         

 

monday
may exempt its directors and Executive Officers in advance for all or any of his/her liability for damage in consequence of a
breach of the duty of care vis-a-vis monday, to the fullest extent permitted by applicable law.

 

    8 

     

    

 

		20.	Insurance
                                         and Indemnification 

 

		20.1.	monday
                                         may indemnify its directors and Executive Officers to the fullest extent permitted by
                                         applicable law, for any liability and expense that may be imposed on the director or
                                         the Executive Officer, as provided in the indemnity agreement between such individuals
                                         and monday, all subject to applicable law and the Company’s articles of association.
                                         monday may adopt arrangements to secure such indemnification obligations to its directors
                                         and Executive Officers.

 

		20.2.	monday
                                         will provide directors’ and officers’ liability insurance (the “Insurance
                                         Policy”) for its directors and Executive Officers as follows:

 

		20.2.1.	The
                                         limit of liability of the insurer shall not exceed $450 million; and

 

		20.2.2.	The
                                         Insurance Policy, as well as the limit of liability and the premium for each extension
                                         or renewal shall be approved by the Compensation Committee (and, if required by law,
                                         by the Board) which shall determine that the sums are reasonable considering monday’s
                                         exposures, the scope of coverage and the market conditions and that the Insurance Policy
                                         reflects the current market conditions, and it shall not materially affect the Company’s
                                         profitability, assets or liabilities.

 

		20.3.	Upon
                                         circumstances to be approved by the Compensation Committee (and, if required by law,
                                         by the Board), monday shall be entitled to enter into a “run off” Insurance
                                         Policy of up to seven (7) years, with the same insurer or any other insurance, as follows:

 

		20.3.1.	The
                                         limit of liability of the insurer shall not exceed $450 million; and

 

		20.3.2.	The
                                         Insurance Policy, as well as the limit of liability and the premium for each extension
                                         or renewal shall be approved by the Compensation Committee (and, if required by law,
                                         by the Board) which shall determine that the sums are reasonable considering the Company’s
                                         exposures covered under such policy, the scope of cover and the market conditions, and
                                         that the Insurance Policy reflects the current market conditions and that it shall not
                                         materially affect the Company’s profitability, assets or liabilities.

 

		20.4.	monday
                                         may extend the Insurance Policy in place to include cover for liability pursuant to a
                                         future public offering of securities as follows:

 

		20.4.1.	The
                                         Insurance Policy, as well as the additional premium shall be approved by the Compensation
                                         Committee (and if required by law, by the Board) which shall determine that the sums
                                         are reasonable considering the exposures pursuant to such public offering of securities,
                                         the scope of cover and the market conditions and that the Insurance Policy reflects the
                                         current market conditions, and it does not materially affect the Company’s profitability,
                                         assets or liabilities.

 

G.
Arrangements upon Change of Control 

 

		21.	The
                                         following benefits may be granted to the Executive Officers (in addition to, or
                                         in lieu of, the benefits applicable in the case of any retirement or termination of service)
                                         upon or in connection with a change of control or, where applicable, in the event of
                                         a change of control in connection of which the employment of the Executive Officer is
                                         terminated or adversely adjusted in a material way:

 

		21.1.	Vesting
                                         acceleration of outstanding options or other equity-based awards;

 

		21.2.	Extension
                                         of the exercising period of equity-based compensation for monday’s Executive Officers
                                         for a period of up to one (1) year, following the date of employment termination; and

 

    9 

     

    

 

		21.3.	Up
                                         to an additional six (6) months of continued base salary and benefits following the date
                                         of employment termination (the “Additional Adjustment Period”). For
                                         avoidance of doubt, such additional Adjustment Period may be in addition to the advance
                                         notice and adjustment periods pursuant to Sections 14 and 15 of this Policy, but subject
                                         to the limitation set forth in Section 18 of this Policy.

 

		21.4.	A
                                         cash bonus not to exceed 200% of the Executive Officer’s annual base salary in
                                         case of an Executive Officer other than monday's CEO and 250% in case of monday's CEO.

 

H.
Board of Directors Compensation 

 

		22.	All
                                         monday’s non-employee Board members may be entitled to an annual cash fee retainer
                                         of up to $75,000 (and up to $125,000 for the chairperson of monday’s Board), an
                                         annual committee membership fee retainer of up to $50,000, and an annual committee chairperson
                                         cash fee retainer of up to $70,000 (it is being clarified that the payment for the chairpersons
                                         would be in lieu of (and not in addition) to the payments referenced above for committee
                                         membership).

 

		23.	The
                                         compensation of the Company’s external directors, if elected, shall be in accordance
                                         with the Companies Regulations (Rules Regarding the Compensation and Expenses of an External
                                         Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies
                                         Traded in Stock Exchange Outside of Israel), 5760-2000, as such regulations may be amended
                                         from time to time.

 

		24.	Notwithstanding
                                         the provisions of Section 22 above, in special circumstances, such as in the case of
                                         a professional director, an expert director or a director who makes a unique contribution
                                         to the Company, such director’s compensation may be different than the compensation
                                         of all other directors and may be greater than the maximal amount allowed under Section
                                         22.

 

		25.	Each
                                         non-employee member of monday’s Board may be granted equity-based compensation.
                                         The fair market value at the date of grant of a “welcome” or an annual equity-based
                                         compensation, granted at a certain year shall not exceed $500,000 in case of a director
                                         and $750,000 in the case of the lead independent director or the chairperson of the monday’s
                                         Board.

 

		26.	All
                                         other terms of the equity awards shall be in accordance with monday’s incentive
                                         plans and other related practices and policies. Accordingly, the Board may, following
                                         approval by the Compensation Committee, make modifications to such awards consistent
                                         with the terms of such incentive plans, subject to any additional approval as may be
                                         required by the Companies Law.

 

		27.	In
                                         addition, members of monday’s Board may be entitled to reimbursement of expenses
                                         in connection with the performance of their duties.

 

		28.	It
                                         is hereby clarified that the compensation (and limitations) stated under Section H will
                                         not apply to directors who serve as Executive Officers.

 

I.
Miscellaneous

 

		29.	Nothing
                                         in this Policy shall be deemed to grant to any of monday’s Executive Officers,
                                         employees, directors, or any third party any right or privilege in connection with their
                                         employment by or service to the Company, nor deemed to require monday to provide any
                                         compensation or benefits to any person. Such rights and privileges shall be governed
                                         by applicable personal employment agreements or other separate compensation arrangements
                                         entered into between monday and the recipient of such compensation or benefits. The Board
                                         may determine that none or only part of the payments, benefits and perquisites detailed
                                         in this Policy shall be granted, and is authorized to cancel or suspend a compensation
                                         package or any part of it.

 

		30.	An
                                         Immaterial Change in the Terms of Employment of an Executive Officer other than monday's
                                         CEO may be approved by monday's CEO, provided that the amended terms of employment are
                                         in accordance with this Policy. An “Immaterial Change in the Terms of Employment”
                                         means a change in the terms of employment of an Executive Officer with an annual total
                                         cost to the Company not exceeding an amount equal to two (2) monthly base salaries of
                                         such employee.

 

    10 

     

    

 

		31.	In
                                         the event that new regulations or law amendment in connection with Executive Officers’
                                         and directors’ compensation will be enacted following the adoption of this Policy,
                                         monday may follow such new regulations or law amendments, even if such new regulations
                                         are in contradiction to the compensation terms set forth herein.

 

*********************

 

This
Policy is designed solely for the benefit of monday and none of the provisions thereof are intended to provide any rights or remedies
to any person other than monday.

 

    11

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