Document:

Exhibit 10.3

 

FORM OF SECURITY AGREEMENT

 

dated as of

 

December 7, 2016

 

among

 

PROTALIX BIOTHERAPEUTICS, INC.

 

THE GUARANTORS PARTY HERETO

 

and

 

WILMINGTON SAVINGS FUND SOCIETY, FSB,

as Collateral Agent

 

     

     

    

 

TABLE OF CONTENTS

 

 

 

	 	Page
	 	 
	SECTION 1. Definitions	1
	SECTION 2. [Reserved.]	8
	SECTION 3. Grant of Transaction Liens	8
	SECTION 4. General Representations and Warranties	10
	SECTION 5. Further Assurances; General Covenants	13
	SECTION 6. Intellectual Property	14
	SECTION 7. Investment Property	15
	SECTION 8. Deposit Accounts	16
	SECTION 9. [Reserved.]	17
	SECTION 10. Commercial Tort Claims	17
	SECTION 11. Transfer Of Record Ownership	18
	SECTION 12. Right to Vote Securities	18
	SECTION 13. [Reserved.]	18
	SECTION 14. Remedies upon Event of Default	18
	SECTION 15. Application of Proceeds	20
	SECTION 16. Fees and Expenses; Indemnification	20
	SECTION 17. Authority to Administer Collateral	21
	SECTION 18. Limitation on Duty in Respect of Collateral	23
	SECTION 19. General Provisions Concerning the Collateral Agent	23
	SECTION 20. Termination of Transaction Liens; Release of Collateral	25
	SECTION 21. Additional Grantors	26
	SECTION 22. [Reserved.]	26
	SECTION 23. Notices	26
	SECTION 24. No Implied Waivers; Remedies Not Exclusive	26
	SECTION 25. Successors and Assigns	26
	SECTION 26. Entire Agreement; Amendments and Waivers	26
	SECTION 27. Choice of Law	26
	SECTION 28. Submission to Jurisdiction	26
	SECTION 29. Waiver of Jury Trial	27
	SECTION 30. Severability	27
	SECTION 31. Counterparts	27

 

    i 

     

    

 

SCHEDULES:

 

Schedule 1     Equity Interests
in Subsidiaries and Affiliates Owned by Original Grantors

 

Schedule 2     Other Investment
Property Owned by Original Grantors

 

Schedule 3     Material Commercial
Tort Claims

 

Schedule 4     Other Secured
Obligations

 

EXHIBITS:

 

Exhibit A        Security Agreement
Supplement

 

Exhibit B        Copyright Security
Agreement

 

Exhibit C        Patent Security
Agreement

 

Exhibit D        Trademark Security
Agreement

 

Exhibit E         Perfection
Certificate

 

Exhibit F         Issuer Control
Agreement

 

    ii 

     

    

  

SECURITY AGREEMENT

 

This SECURITY AGREEMENT dated as of December
7, 2016 (the “Effective Date”) among Protalix BioTherapeutics, Inc., as Issuer (the “Issuer”), the Guarantors
party hereto and Wilmington Savings Fund Society, FSB, as Collateral Agent (the “Collateral Agent”).

 

WHEREAS, pursuant to the Indenture dated
as of December 7, 2016 among the Issuer, the Guarantors party thereto, The Bank of New York Mellon Trust Company, N.A., as Trustee,
and Wilmington Savings Fund Society, FSB, as Collateral Agent (as amended, modified, renewed or extended from time to time, the
“Indenture”), the Issuer intends to issue its 7.50% secured convertible notes (the “Notes”) and the Guarantors
intend to guarantee the Notes;

 

WHEREAS, the Issuer and the Guarantors are
willing to secure their respective obligations under the Indenture, by granting Liens on their respective assets to the Collateral
Agent as provided herein;

 

WHEREAS, the Collateral Agent has agreed
to act as agent for the benefit of the Secured Parties in connection with the transactions contemplated by the Indenture and this
Agreement; and

 

WHEREAS, upon any foreclosure or other enforcement
action as provided herein, the net proceeds of the relevant Collateral are to be received by or paid over to the Collateral Agent
and applied as provided herein;

 

NOW, THEREFORE, in consideration of the
foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

 

SECTION 1. Definitions.

 

(a)          Terms
Defined in Indenture. Terms defined in the Indenture and not otherwise defined in subsection ‎(b)
or ‎(c) of this Section have, as used herein, the respective meanings provided
for therein. The rules of construction specified in Section 1.03 of the Indenture also apply to this Agreement.

 

(b)          Terms
Defined in UCC. As used herein, each of the following terms has the meaning specified in the UCC:

 

    	 	1	 

     

    

 

	Term	 	UCC
	Account	 	9-102
	Authenticate	 	9-102
	Certificated Security	 	8-102
	Chattel Paper	 	9-102
	Commercial Tort Claim	 	9-102

	Commodity Account	 	9-102
	Commodity Customer	 	9-102
	Deposit Account	 	9-102
	Document	 	9-102
	Equipment	 	9-102
	Financial Asset	 	8-102 & 103
	Fixtures	 	9-102
	General Intangibles	 	9-102
	Goods	 	9-102
	Instrument	 	9-102
	Inventory	 	9-102
	Investment Property	 	9-102
	Letter-of-Credit Right	 	9-102
	Record	 	9-102
	Securities Account	 	8-501
	Security	 	8-102 & 103
	Security Entitlement	 	8-102
	Supporting Obligation	 	9-102
	Uncertificated Security	 	8-102

 

(c)          Additional
Definitions. The following additional terms, as used herein, have the following meanings:

 

“Collateral” has the
meaning set forth in Section 3(a)(xiv).

 

“Control” has the meaning
specified in UCC Section 8-106, 9-104, 9-105, 9-106 or 9-107, as may be applicable to the relevant Collateral.

 

“Controlled Deposit Account”
means a Deposit Account (i) that is subject to a Deposit Account Control Agreement or (ii) as to which the Collateral Agent is
the Depositary Bank’s “customer” (as defined in UCC Section 4-104).

 

“Copyright License” means
any agreement now or hereafter in existence granting to any Grantor, or pursuant to which any Grantor grants to any other Person,
any right to use, copy, reproduce, distribute, prepare derivative works, display or publish any records or other materials on which
a Copyright is in existence or may come into existence, including any agreement identified in Schedule 1 to any Copyright Security
Agreement.

 

    	 	2	 

     

    

 

“Copyrights” means all
the following: (i) all copyrights under the laws of the United States or any other country (whether or not the underlying works
of authorship have been published), all registrations and recordings thereof, all copyrightable works of authorship (whether or
not published), and all applications for copyrights under the laws of the United States or any other country, including registrations,
recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any
State thereof or any other country or any political subdivision thereof, including those described in Schedule 1 to any Copyright
Security Agreement, (ii) all renewals of any of the foregoing, (iii) all claims for, and rights to sue for, past or future infringements
of any of the foregoing and (iv) all income, royalties, damages and payments now or hereafter due or payable with respect to any
of the foregoing, including damages and payments for past or future infringements thereof.

 

“Copyright Security Agreement”
means a Copyright Security Agreement, substantially in the form of Exhibit B, executed and delivered by a Grantor in favor of the
Collateral Agent for the benefit of the Secured Parties.

 

“Deposit Account Control Agreement”
means, with respect to any Deposit Account of any Grantor, a Deposit Account Control Agreement in a form reasonably acceptable
to the Collateral Agent among such Grantor, the Collateral Agent and the relevant Depositary Bank.

 

“Depositary Bank” means
a bank at which a Controlled Deposit Account is maintained.

 

“Equity Interest” means
Capital Stock; provided, however, that “Equity Interests” does not include any debt security that is convertible into,
or exchangeable for, (x) Capital Stock or (b) Capital Stock and/or cash based on the value of such Capital Stock).

 

“Grantors” means the
Issuer and the Guarantors.

 

“Guarantors” has the
meaning set forth in the Indenture.

 

“Holder” or “Holders”
has the meaning set forth in the Indenture.

 

“IIA Approval” means
the approval of the Israel Innovation Authority granted in connection with the transactions contemplated by the Note Documents.

 

“IIA-Funded Know-How”
means the Intellectual Property forming part of the Collateral that was developed with the support of the Israeli Innovation Authority,
including any rights derived therefrom.

 

“IIA Restrictions”
means the following restrictions under Israeli law:

 

		(a)	the grant of a security interest in any IIA-Funded Know-How
will require and will be subject to the approval of the Israeli Innovation Authority and to the execution and delivery by the
Israeli Security Trustee or the Trustee on behalf of the Holders, as applicable, of an undertaking towards the Israeli Innovation
Authority, in the form requested by the Israeli Innovation Authority, prior to the creation of such security interest;

 

    	 	3	 

     

    

 

		(b)	any enforcement of a security interest in IIA-Funded
Know-How, including the sale, assignment or license of the IIA-Funded Know-How and its transfer within the framework of enforcement
procedures under the Note Documents, will require and be subject to the approval of the Israeli Innovation Authority and to the
conditions of the IIA Approval and the provisions of the Research Law; and

 

		(c)	any enforcement of a security interest in IIA-Funded
Know-How will be subject to the receipt of an undertaking of the grantee, potential buyer or any other transferee to assume the
applicable obligations in respect of such IIA-Funded Know-How in accordance with the Research Law and in accordance with the terms
of the program pursuant to which grants were provided to the applicable Israeli Grantor.

 

“Indenture” has the meaning
assigned to such term in the recitals of this Agreement.

 

“Intellectual Property”
means any and all intellectual property and proprietary rights of any Grantor of every kind and nature now owned or hereafter acquired
by any Grantor, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary
technical and business information, know-how, improvements, data, software and databases and all embodiments or fixations thereof
and related documentation, registrations and applications for registrations, and all additions, improvements and accessions to,
and books and records describing or used in connection with, any of the foregoing.

 

“Intellectual Property Filing”
means (i) with respect to any Patent, Patent License, Trademark or Trademark License, the filing of the applicable Patent Security
Agreement or Trademark Security Agreement with the United States Patent and Trademark Office, together with an appropriately completed
recordation form, and (ii) with respect to any Copyright or Copyright License, the filing of the applicable Copyright Security
Agreement with the United States Copyright Office, together with an appropriately completed recordation form, in each case sufficient
to record the Transaction Lien granted to the Collateral Agent in such Intellectual Property.

 

“Intellectual Property Security
Agreement” means a Copyright Security Agreement, a Patent Security Agreement or a Trademark Security Agreement.

 

“Israeli Grantor” means
Protalix Ltd., a limited company organized under the laws of the State of Israel, and each other Grantor that is organized under
the laws of the State of Israel.

 

“Israeli Innovation Authority”
means the Israeli National Authority for Technological Innovation (formerly known as the Office of the Chief Scientist
of the Israeli Ministry of the Economy), or any successor governmental authority.

 

    	 	4	 

     

    

 

“Israeli Security Trustee”
means Altshuler Shaham Trusts Ltd., in its capacity as Security Trustee under the Israeli law governed Security Documents.

 

“Issuer Control Agreement”
means an Issuer Control Agreement substantially in the form of Exhibit F.

 

“License” means any Patent
License, Trademark License, Copyright License or other license or sublicense agreement relating to Intellectual Property to which
any Grantor is a party.

 

“Material Commercial Tort Claim”
means a Commercial Tort Claim involving a claim for more than $500,000.

 

“Note Documents” has
the meaning set forth in the Indenture.

 

“Officer” means the Chairman
of the Board, the Vice Chairman, the Chief Executive Officer, the President, the Chief Financial Officer, any Executive Vice President,
any Senior Vice President, any Vice President, the Chief Accounting Officer, the Treasurer or the Secretary of the Company or any
Guarantor, as applicable.

 

“Officers’ Certificate”
means a written certificate signed in the name of the Grantor by any two Officers, and delivered to the Collateral Agent.

 

“Opinion of Counsel”
means a written opinion of legal counsel (who may be counsel to a Grantor or other counsel, in either case satisfactory to the
Collateral Agent) addressed and delivered to the Collateral Agent.

 

“Original Grantor” means
any Grantor that grants a Lien on any of its assets hereunder on the Effective Date.

 

“own” refers to the possession
of sufficient rights in property to grant a security interest therein as contemplated by UCC Section 9-203, and “acquire”
refers to the acquisition of any such rights.

 

“Patent License” means
any agreement now or hereafter in existence granting to any Grantor, or pursuant to which any Grantor grants to any other Person,
any right with respect to any Patent or any invention, whether patentable or not, now or hereafter in existence, including any
agreement identified in Schedule 1 to any Patent Security Agreement.

 

“Patents” means (i) all
patents of the United States or any other country and all applications for patents of the United States or any other country, including
applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State
thereof or any other country or any political subdivision thereof, including those described in Schedule 1 to any Patent Security
Agreement, (ii) all reissues, reexaminations, divisions, continuations, continuations-in-part, revisions and extensions of any
of the foregoing, (iii) all claims for, and rights to sue for, past or future infringements of any of the foregoing and (iv) all
income, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages
and payments for past or future infringements thereof.

 

    	 	5	 

     

    

 

“Patent Security Agreement”
means a Patent Security Agreement, substantially in the form of Exhibit C, executed and delivered by a Grantor in favor of the
Collateral Agent for the benefit of the Secured Parties.

 

“Perfection Certificate”
means, with respect to any Grantor, a certificate substantially in the form of Exhibit E, completed and supplemented with the schedules
contemplated thereby, and signed by an officer of such Grantor.

 

“Permitted Liens” means
(i) the Transaction Liens and (ii) any other Liens on the Collateral permitted to be created or assumed or to exist pursuant to
Section 4.16 of the Indenture.

 

“Personal Property Collateral”
means all property included in the Collateral except Real Property Collateral.

 

“Pledged”, when used
in conjunction with any type of asset, means at any time an asset of such type that is included (or that creates rights that are
included) in the Collateral at such time. For example, “Pledged Equity Interest” means an Equity Interest that is included
in the Collateral at such time.

 

“Post-Petition Interest”
means any interest that accrues after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency
or reorganization of any one or more of the Grantors (or would accrue but for the operation of applicable bankruptcy or insolvency
laws), whether or not such interest is allowed or allowable as a claim in any such proceeding.

 

“Proceeds” means all
proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange,
assignment, licensing or other disposition of, or other realization upon, any Collateral, including all claims of the relevant
Grantor against third parties for loss of, damage to or destruction of, or for proceeds payable under, or unearned premiums with
respect to, policies of insurance in respect of, any Collateral, and any condemnation or requisition payments with respect to any
Collateral.

 

“Real Property Collateral”
means all real property (including leasehold interests in real property) included in the Collateral.

 

“Recordable Intellectual Property”
means (i) any Patent registered with the United States Patent and Trademark Office, and any Patent License with respect to a Patent
so registered, (ii) any Trademark registered with the United States Patent and Trademark Office, and any Trademark License with
respect to a Trademark so registered, (iii) any Copyright registered with the United States Copyright Office and any Copyright
License with respect to a Copyright so registered and (iv) all rights in, to or under any of the foregoing.

 

    	 	6	 

     

    

 

“Research Law” means
the Israeli Encouragement of Research, Development and Technological Innovation in Industry Law, 5744-1984 and the regulations,
rules, circulars and guidelines promulgated or published thereunder.

 

“Secured Agreement”,
when used with respect to any Secured Obligation, refers collectively to each instrument, agreement or other document that sets
forth obligations of the Issuer, obligations of a guarantor and/or rights of the holder with respect to such Secured Obligation.

 

“Secured Obligations”
means (i) all the principal of, premium on, if any, and interest on (including Post-Petition Interest) all Notes outstanding from
time to time under the Indenture and (ii) all other amounts now or hereafter payable by the Issuer or any Guarantor pursuant to
the Note Documents.

 

“Secured Parties” means
the Trustee, the Collateral Agent and the Holders.

 

“Security Agreement Supplement”
means a Security Agreement Supplement, substantially in the form of Exhibit A, signed and delivered to the Collateral Agent for
the purpose of adding a Subsidiary as a party hereto pursuant to ‎Section
21 and/or adding additional property to the Collateral.

 

“Trademark License” means
any agreement now or hereafter in existence granting to any Grantor, or pursuant to which any Grantor grants to any other Person,
any right to use any Trademark, including any agreement identified in Schedule 1 to any Trademark Security Agreement.

 

“Trademarks” means: (i)
all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks,
logos, brand names, domain names, rights of publicity, trade dress, prints and labels on which any of the foregoing have appeared
or appear, package and other designs, and all other source or business identifiers, and all general intangibles of like nature,
and the rights in any of the foregoing which arise under applicable law, (ii) the goodwill of the business symbolized thereby or
associated with each of them, (iii) all registrations and applications for registration in connection therewith, including registrations
and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States, any
State thereof or any other country or any political subdivision thereof, including those described in Schedule 1 to any Trademark
Security Agreement, (iv) all renewals of any of the foregoing, (v) all claims for, and rights to sue for, past or future infringements
of any of the foregoing and (vi) all income, royalties, damages and payments now or hereafter due or payable with respect to any
of the foregoing, including damages and payments for past or future infringements thereof.

 

    	 	7	 

     

    

 

“Trademark Security Agreement”
means a Trademark Security Agreement, substantially in the form of Exhibit D, executed and delivered by a Grantor in favor of the
Collateral Agent for the benefit of the Secured Parties.

 

“Transaction Liens” means
the Liens granted by the Grantors under this Agreement.

 

“UCC” means the Uniform
Commercial Code as in effect from time to time in the State of New York; provided that, if perfection or the effect of perfection
or non-perfection or the priority of any Transaction Lien on any Collateral is governed by the Uniform Commercial Code as in effect
in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such
other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or
priority.

 

SECTION 2. [Reserved.] 

 

SECTION 3. Grant of Transaction Liens.

 

(a)          The
Issuer, in order to secure the payment or performance of the Secured Obligations, and each Guarantor listed on the signature pages
hereof, in order to secure its Note Guarantee, grants to the Collateral Agent for the ratable benefit of the Secured Parties a
security interest in all the following property of the Issuer or such Guarantor, as the case may be, whether now owned or existing
or hereafter acquired or arising and regardless of where located:

 

(i)          all
Accounts;

 

(ii)         all
Chattel Paper;

 

(iii)        all
cash and Deposit Accounts;

 

(iv)        all
Documents;

 

(v)         all
Equipment;

 

(vi)        all
General Intangibles (including (x) any Equity Interests in other Persons that do not constitute Investment Property and (y) any
Intellectual Property);

 

(vii)       all
Instruments;

 

(viii)      all
Inventory;

 

(ix)         all
Investment Property;

 

(x)          the
Commercial Tort Claims described in Schedule 3;

 

    	 	8	 

     

    

 

(xi)         all
Letter-of-Credit Rights;

 

(xii)        all
Goods not otherwise described above;

 

(xiii)       all
books and records (including customer lists, credit files, computer programs, printouts and other computer materials and records)
of such Grantor pertaining to any of its Collateral;

 

(xiv)      
such Grantor’s ownership interest in (1) its Controlled Deposit Accounts, (2) all Financial Assets credited to its
Controlled Deposit Accounts from time to time and all Security Entitlements in respect thereof, (3) all cash held in its
Controlled Deposit Accounts from time to time and (4) all other money in the possession of the Collateral Agent; and

 

(xv)       
to the extent not otherwise included, all Proceeds of the Collateral described in the foregoing clauses ‎(i)
through (xiv) (all of the above, the “Collateral”);

 

provided that the following property is excluded from
the foregoing security interests: (A) motor vehicles the perfection of a security interest in which is excluded from the Uniform
Commercial Code in the relevant jurisdiction, (B) any United States “intent-to-use” Trademark application prior to
the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if
any, that, and solely during the period, if any, in which, the grant of a security interest therein would impact the validity or
enforceability of such application under applicable federal law, (C) any permit or license or any contractual obligation entered
into by a Grantor that prohibits or requires the consent of any Person other than the Issuer or any of its subsidiaries as a condition
to the creation by such Grantor of a Lien on any right, title or interest in such permit, license or contractual agreement, except
to the extent such prohibition or consent requirement is ineffective under applicable law, (D) any property to the extent that
the grant of a security interest therein is prohibited by any applicable law or regulation, requires a consent not obtained of
any governmental authority pursuant to any applicable law or regulation, or is prohibited by, or constitutes a breach or default
under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument
or other document evidencing or giving rise to such property or, in the case of any Investment Property, any applicable shareholder
or similar agreement, except to the extent that such law or regulation or the term in such contract, license, agreement, instrument
or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring
such consent is ineffective under applicable law and (E) those assets as to which the Collateral Agent and the Issuer shall reasonably
determine, in writing, that the cost or other consequence of obtaining a lien thereon or perfection thereof are excessive in relation
to the benefit to the Secured Parties of the security to be afforded thereby. Each Grantor shall upon request of the Collateral
Agent use all reasonable efforts to obtain any such required consent that is reasonably obtainable. Notwithstanding anything herein
to the contrary, the parties acknowledge and agree that the “Collateral” of any Israeli Grantor shall only include
Intellectual Property registered in the United States of America; provided that in respect of any such Collateral constituting
IIA-Funded Know-How, the creation of any security interest over such Collateral and any enforcement thereof shall be (x) subject
to the IIA Restrictions (including the Research Law and the IIA Approval) and (y) separately governed by the laws of the State
of Israel and subject to the exclusive jurisdiction of the Israeli courts. Notwithstanding anything contained herein or in any
other Note Document to the contrary, in no event shall the Collateral Agent be deemed to have been granted a security interest
in, nor shall the Collateral Agent have any obligations with respect to or liability in connection with, any Collateral constituting
IIA-Funded Know-How Collateral. In furtherance of, and without limiting the generality of the foregoing, in no event shall the
Collateral Agent have any obligations with respect to, or liability for, any Collateral governed by the laws of the State of Israel
and/or located (and in the case of any Intellectual Property constituting Collateral, registered) in the State of Israel.

 

    	 	9	 

     

    

 

(b)          With
respect to each right to payment or performance included in the Collateral from time to time, the Transaction Lien granted therein
includes a continuing security interest in (i) any Supporting Obligation that supports such payment or performance and (ii) any
Lien that (x) secures such right to payment or performance or (y) secures any such Supporting Obligation.

 

(c)          The
Transaction Liens are granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or transfer
or in any way affect or modify, any obligation or liability of any Grantor with respect to any of the Collateral or any transaction
in connection therewith.

 

SECTION 4. General Representations and
Warranties. Each Grantor represents and warrants that:

 

(a)          Such
Grantor is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization.

 

(b)          With
respect to each Original Grantor, Schedule 1 lists all Equity Interests in Subsidiaries and Affiliates owned by such Grantor as
of the Effective Date. Such Grantor holds all such Equity Interests directly (i.e., not through a Subsidiary, a Securities
Intermediary or any other Person).

 

(c)          With
respect to each Original Grantor, Schedule 2 lists, as of the Effective Date, (i) all Securities owned by such Grantor (except
Securities evidencing Equity Interests in Subsidiaries and Affiliates) and (ii) all Securities Accounts to which Financial Assets
are credited in respect of which such Grantor owns Security Entitlements.

 

(d)          All
Pledged Equity Interests owned by such Grantor are owned by it free and clear of any Lien other than (i) the Transaction Liens
and (ii) any Permitted Liens. All shares of capital stock of wholly-owned Subsidiaries of a Grantor organized in the United States,
any State thereof or the District of Columbia included in such Pledged Equity Interests (including shares of capital stock in respect
of which such Grantor owns a security entitlement) have been duly authorized and validly issued and are fully paid and non-assessable.

 

    	 	10	 

     

    

 

(e)          Such
Grantor has good and marketable title to all its Collateral (subject to exceptions that are, in the aggregate, not material), free
and clear of any Lien other than Permitted Liens.

 

(f)          After
the Effective Date, no Collateral owned by such Grantor will be in the possession or under the Control of any other Person having
a claim thereto or security interest therein, other than a Permitted Lien.

 

(g)          The
Transaction Liens on all Personal Property Collateral owned by such Grantor (i)have been validly created, (ii)will attach to each
item of such Collateral on the Effective Date (or, if such Grantor first obtains rights thereto on a later date, on such later
date) and (iii)when so attached, will secure all the Secured Obligations or such Grantor’s Note Guarantee, as the case may
be.

 

(h)          Such
Grantor has delivered a Perfection Certificate to the Collateral Agent. With respect to each Original Grantor, information set
forth therein is correct and complete in all material respects as of the Effective Date.

 

(i)          When
UCC financing statements describing the Personal Property Collateral as “all personal property” have been filed in
the offices specified in such Perfection Certificate, the Transaction Liens will constitute perfected security interests in the
Personal Property Collateral owned by such Grantor to the extent that a security interest therein may be perfected by filing pursuant
to the UCC, prior to all Liens and rights of others therein except Permitted Liens. When, in addition to the filing of such UCC
financing statements, the applicable Intellectual Property Filings have been made with respect to such Grantor’s Recordable
Intellectual Property (including any future filings required pursuant to Sections ‎5(a)
and 6(a)), the Transaction Liens will constitute perfected security interests in all right, title and interest of such Grantor
in its Recordable Intellectual Property to the extent that security interests therein may be perfected by such filings, prior to
all Liens and rights of others therein except Permitted Liens. Except for (i) the filing of such UCC financing statements, (ii)
the filing, in the case of any Israeli Grantor, of this Agreement with the Israeli Registrar of Companies, and (iii) such Intellectual
Property Filings, no registration, recordation or filing with any governmental body, agency or official is required in connection
with the execution or delivery of this Agreement or is necessary for the validity or enforceability thereof or for the perfection
or due recordation of the Transaction Liens or for the enforcement of the Transaction Liens. Notwithstanding anything herein to
the contrary, no Israeli Grantor shall be required to perfect any security interest or Transaction Lien, or record any notice thereof,
in any Intellectual Property registered in any jurisdiction other than Intellectual Property registered in the United States of
America.

 

    	 	11	 

     

    

 

(j)          As
of the date hereof, Schedules 11(a), 11(b) and 11(c) to the Perfection Certificate sets forth a true and accurate list of (i) all
registrations of and applications for Patents, Trademarks, and Copyrights owned by any Grantor and (ii) all Copyright Licenses
pursuant to which any Grantor is granted an exclusive license to one or more registered United States Copyrights that are identified
in such Copyright License.

 

(k)          With
respect to all Intellectual Property listed on Schedules 11(a), 11(b) and 11(c) to the Perfection Certificate that is owned by
a Grantor, except as could not reasonably be expected to have a Material Adverse Effect, such Grantor is the owner of the entire
right, title, and interest in and to such Intellectual Property, free and clear of all Liens (other than Permitted Liens). To the
knowledge of such Grantor, such Grantor owns or is validly licensed to use all other Intellectual Property necessary for the conduct
of its business as currently conducted, free and clear of all Liens (other than Permitted Liens), except as would not reasonably
be expected to have a Material Adverse Effect.

 

(l)          All
registrations and applications for Copyrights, Patents and Trademarks included in the Collateral are standing in the name of a
Grantor and are subsisting and in full force and effect, and to such Grantor’s knowledge, valid and enforceable, except as
would not reasonably be expected to have a Material Adverse Effect.

 

(m)         No
holding, decision, or judgment has been rendered in any action or proceeding against any Grantor before any court, administrative
or other governmental authority, challenging the validity or enforceability of any Intellectual Property included in the Collateral,
or such Grantor’s right to register, own or use such Intellectual Property, and no such action or proceeding against such
Grantor is pending or, to the Grantors’ knowledge, threatened in writing, except as would not reasonably be expected to have
a Material Adverse Effect.

 

(n)          With
respect to each Copyright License, Trademark License, Patent License, and Trade Secret License to which any Grantor is a party:
(i) such agreement constitutes a legal, valid and binding obligation of such Grantor and represents the entire agreement between
the respective licensor and licensee with respect to the subject matter of such license; (ii) such Grantor has not received any
written notice of termination or cancellation under such license; (iii) such Grantor has not received any written notice of a breach
or default under such license, which breach or default has not been cured; and (iv) such Grantor is not in breach or default,
and no event has occurred that, with notice and/or lapse of time, would constitute such a breach or default or otherwise permit
termination, modification or acceleration under such agreement, except as would not reasonably be expected to have a Material Adverse
Effect.

 

(o)          Each
Grantor has taken commercially reasonable steps to protect in all material respects: (i) the confidentiality of all Intellectual
Property owned by such Grantor the value of which to such Grantor is contingent upon maintaining the confidentiality thereof and
(ii) its interest in its material Intellectual Property owned by such Grantor.

 

    	 	12	 

     

    

 

SECTION 5. Further Assurances; General
Covenants. So long as any of the Secured Obligations (other than contingent indemnification obligations) remain unsatisfied,
each Grantor covenants as follows:

 

(a)          Such
Grantor will, from time to time, at the Issuer’s expense, execute, deliver, file and record any statement, assignment, instrument,
document, agreement or other paper and take any other action (including any Intellectual Property Filing) that from time to time
may be necessary or commercially reasonable, or that the Collateral Agent may reasonably request, in order to:

 

(i)          create,
preserve, perfect, confirm or validate the Transaction Liens on such Grantor’s Collateral;

 

(ii)         in
the case of Pledged Deposit Accounts, Pledged Investment Property and Pledged Letter-of-Credit Rights, cause the Collateral Agent
to have Control thereof;

 

(iii)        enable
the Collateral Agent and the other Secured Parties to obtain the contractual benefits of this Agreement; or

 

(iv)        enable
the Collateral Agent to exercise and enforce any of its rights, powers and remedies with respect to any of such Grantor’s
Collateral.

 

Such Grantor authorizes the Collateral Agent, without any obligation,
to execute and file such financing statements or continuation statements in such jurisdictions with such descriptions of collateral
(including “all assets” or “all personal property” or other words to that effect) and other information
set forth therein as the Collateral Agent may reasonably deem necessary or desirable for the purposes set forth in the preceding
sentence. Each Grantor also ratifies its authorization for the Collateral Agent to file in any such jurisdiction any initial financing
statements or amendments thereto if filed prior to the date hereof. The Collateral Agent is further authorized to file with the
United States Patent and Trademark Office or United States Copyright Office (or any successor office or any similar office in any
other country) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing
or protecting the security interests granted by each Grantor, without the signature of any Grantor, and naming any Grantor or the
Grantors as debtors and the Collateral Agent as secured party. The Issuer will pay the actual and documented costs of, or reasonably
incidental to, any Intellectual Property Filings and any recording or filing of any financing or continuation statements or other
documents recorded or filed pursuant hereto.

 

(b)          Such
Grantor will not (i) change its name or organizational form or structure, (ii) change its location (determined as provided in UCC
Section 9-307) or (iii)become bound, as provided in UCC Section 9 203(d) or otherwise, by a security agreement entered into by
another Person, unless it shall have given the Collateral Agent prior notice thereof.

 

    	 	13	 

     

    

 

(c)          Such
Grantor will, promptly upon request, provide to the Collateral Agent all information and evidence concerning such Grantor’s
Collateral that the Collateral Agent may reasonably request from time to time to enable it to enforce the provisions of this Agreement.

 

(d)          Such
Grantors shall (i) each year, at the time of delivery of annual financial statements with respect to the preceding fiscal year
pursuant to Section 4.03 of the Indenture, deliver to the Collateral Agent an updated Perfection Certificate signed by an officer
of such Grantor and (ii) not later than 15 calendar days following the end of each fiscal quarter, deliver to the Collateral Agent
updated Schedules 11(a), (b) and (c) of the Perfection Certificate dated as of the date hereof.

 

SECTION 6. Intellectual Property.
Each Grantor covenants as follows:

 

(a)          If
such Grantor, at any time after the date hereof, obtains any ownership or other rights in and to any additional Intellectual Property,
then the provisions of this Agreement shall automatically apply thereto and any such Intellectual Property shall automatically
constitute Collateral and shall be subject to the security interest created by this Agreement, without further action by any party
(except as expressly set forth in Section 3 hereof). Further, Schedules 11(a), 11(b) and 11(c) to the Perfection Certificate shall
be amended or deemed to be amended to include any applications or registrations for Patents, Trademarks and Copyrights included
in the Collateral (but the failure to so amend shall not be deemed to affect the Collateral Agent’s security interest in
or lien upon such Intellectual Property).

 

(b)          On
the Effective Date (in the case of an Original Grantor) or the date on which it signs and delivers its first Security Agreement
Supplement (in the case of any other Grantor), such Grantor will sign and deliver to the Collateral Agent Intellectual Property
Security Agreements with respect to all Recordable Intellectual Property then owned by it. Such Grantor will also promptly make
and execute all other Intellectual Property Filings necessary to record, not later than 30 calendar days following the end of each
fiscal quarter, the Transaction Liens on such Recordable Intellectual Property in connection with any Intellectual Property over
which the Collateral Agent does not have a perfected Lien.

 

(c)          Such
Grantor will notify the Collateral Agent promptly if it knows that any registration or application for registration relating to
any material Recordable Intellectual Property owned or licensed by it may become abandoned or dedicated to the public, or of any
adverse determination or development (including the institution of, or any adverse determination or development in, any proceeding
in the United States Copyright Office, the United States Patent and Trademark Office or any court) regarding such Grantor’s
ownership of or right to use such Recordable Intellectual Property, its right to register or patent the same, or its right to keep
and maintain the same.

 

(d)          Such
Grantor shall not take any act or omit to take any commercially reasonable act whereby any material Intellectual Property included
in the Collateral may be abandoned, forfeited, dedicated to the public, invalidated, lapse or materially impaired in any way other
than in the ordinary course of business or as consistent with such Grantor’s past practice.

 

    	 	14	 

     

    

 

(e)          Such
Grantor shall not grant any exclusive license to any third party of any material Intellectual Property included in the Collateral
that would materially detract from the value of the Collateral (taking into account the value of the license as well) or materially
interfere with the ordinary course of business of any Grantor, other than in the ordinary course of business.

 

(f)          Such
Grantor shall take all actions reasonably necessary or advisable, or otherwise reasonably requested by the Collateral Agent, to
maintain and pursue each application, to obtain the relevant registration and to maintain the registration of each of the Recordable
Intellectual Property (now or hereafter existing) material to the conduct of such Grantor’s business, including the filing
of applications for renewal, affidavits of use and, if consistent with good business judgment, to initiate opposition, interference,
inter partes and post-grant review proceedings against third parties.

 

(g)          Upon
the occurrence and during the continuance of an Event of Default, at the request of the Collateral Agent, each Grantor shall use
its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of each Copyright License, Patent
License, Trademark License or any other License under which such Grantor is a licensee to effect the assignment of all such Grantor’s
right, title and interest thereunder to the Collateral Agent, for the ratable benefit of the Secured Parties, or its designee.

 

SECTION 7. Investment Property. Each
Grantor represents, warrants and covenants as follows:

 

(a)          Certificated
Securities. On the Effective Date (in the case of an Original Grantor) or the date on which it signs and delivers its first
Security Agreement Supplement (in the case of any other Grantor), such Grantor will deliver to the Collateral Agent as Collateral
hereunder all certificates representing Pledged Certificated Securities then owned by such Grantor. Thereafter, whenever such Grantor
acquires any other certificate representing a Pledged Certificated Security, such Grantor will promptly deliver such certificate
to the Collateral Agent as Collateral hereunder.

 

(b)          Uncertificated
Securities. On the Effective Date (in the case of an Original Grantor) or the date on which it signs and delivers its first
Security Agreement Supplement (in the case of any other Grantor), such Grantor will enter into (and cause the relevant issuer to
enter into) an Issuer Control Agreement in respect of each Pledged Uncertificated Security then owned by such Grantor and deliver
such Issuer Control Agreement to the Collateral Agent (which, if satisfactory to the Collateral Agent, shall enter into the same).
Thereafter, whenever such Grantor acquires any other Pledged Uncertificated Security, such Grantor will enter into (and cause the
relevant issuer to enter into) an Issuer Control Agreement in respect of such Pledged Uncertificated Security and deliver such
Issuer Control Agreement to the Collateral Agent (which, if satisfactory to the Collateral Agent, shall enter into the same).

 

    	 	15	 

     

    

 

(c)          Perfection
as to Certificated Securities. When such Grantor delivers the certificate representing any Pledged Certificated Security owned
by it to the Collateral Agent and complies with Section 13(h) in connection with such delivery, (i)the Transaction Lien on such
Pledged Certificated Security will be perfected, subject to no prior Liens or rights of others, (ii)the Collateral Agent will have
Control of such Pledged Certificated Security and (iii)the Collateral Agent will be a protected purchaser (within the meaning of
UCC Section 8-303) thereof.

 

(d)          Perfection
as to Uncertificated Securities. When such Grantor, the Collateral Agent and the issuer of any Pledged Uncertificated Security
owned by such Grantor enter into an Issuer Control Agreement with respect thereto, (i)the Transaction Lien on such Pledged Uncertificated
Security will be perfected, subject to no prior Liens or rights of others, (ii)the Collateral Agent will have Control of such Pledged
Uncertificated Security and (iii)the Collateral Agent will be a protected purchaser (within the meaning of UCC Section 8-303) thereof.

 

(e)          Delivery
of Pledged Certificates. All certificates representing Pledged Certificated Securities, when delivered to the Collateral Agent,
will be in suitable form for transfer by delivery, or accompanied by duly executed instruments of transfer or assignment in blank,
with signatures appropriately guaranteed (to the extent required by applicable law), all in form and substance reasonably satisfactory
to the Collateral Agent.

 

(f)          Certification
of Limited Liability Company and Partnership Interests. To the extent any interest in a limited liability company or partnership
organized in the United States, any State thereof or the District of Colombia and controlled by any Grantor that is required to
be pledged pursuant to the terms hereof or pursuant to the terms of the Indenture is certificated or becomes certificated, each
such certificate shall be delivered to the Collateral Agent pursuant to ‎Section
‎7(a) and such Grantor shall fulfill all other requirements under ‎Section
7 applicable in respect thereof.

 

SECTION 8. Deposit Accounts. Each
Grantor represents, warrants and covenants as follows:

 

(a)          On
and after the date that is 30 days following the date hereof, all cash owned by such Grantor will be deposited, upon or promptly
after the receipt thereof, in one or more Controlled Deposit Accounts, other than (i) non U.S. Deposit Accounts and (ii) Deposit
Accounts exclusively used for (A) payroll, payroll taxes and other employee wage and benefit payments to or for any Grantor’s
or its Subsidiaries’ employees, (B) health-savings accounts and worker’s compensation accounts, (C) trust accounts
(to the extent no funds are held therein other than amounts held therein in trust in the ordinary course of business on behalf
of third parties that are not Loan Parties or Affiliates of Loan Parties) and (D) zero balance accounts used in the ordinary course
of business.

 

    	 	16	 

     

    

 

(b)          In
respect of each Controlled Deposit Account, the Depositary Bank’s jurisdiction (determined as provided in UCC Section 9-304)
will at all times be a jurisdiction in which Article 9 of the Uniform Commercial Code is in effect.

 

(c)          So
long as the Collateral Agent has Control of a Controlled Deposit Account, the Transaction Lien on such Controlled Deposit Account
will be perfected, subject to no prior Liens other than Permitted Liens.

 

(d)          Materiality
Exception. The Grantors have the right not to comply with the foregoing provisions of this Section with respect to Deposit
Accounts having total collected balances that do not at any time exceed $500,000 in the aggregate for all Grantors.

 

SECTION 9. [Reserved.]

 

SECTION 10. Commercial Tort Claims.
Each Grantor represents, warrants and covenants as follows:

 

(a)          In
the case of an Original Grantor, Schedule 3 accurately describes, with the specificity required to satisfy Official Comment 5 to
UCC Section 9-108, each Material Commercial Tort Claim with respect to which such Original Grantor is the claimant as of the Effective
Date. In the case of any other Grantor, Schedule 3 to its first Security Agreement Supplement will accurately describe, with the
specificity required to satisfy said Official Comment 5, each Material Commercial Tort Claim with respect to which such Grantor
is the claimant as of the date on which it signs and delivers such Security Agreement Supplement.

 

(b)          If
any Grantor acquires a Material Commercial Tort Claim after the Effective Date (in the case of an Original Grantor) or the date
on which it signs and delivers its first Security Agreement Supplement (in the case of any other Grantor), such Grantor will promptly
sign and deliver to the Collateral Agent a Security Agreement Supplement granting a security interest in such Commercial Tort Claim
(which shall be described therein with the specificity required to satisfy said Official Comment 5) to the Collateral Agent for
the benefit of the Secured Parties.

 

    	 	17	 

     

    

 

SECTION 11. Transfer Of Record Ownership.
At any time when an Event of Default shall have occurred and be continuing, the Collateral Agent may (and to the extent that action
by it is required, the relevant Grantor, if reasonably directed to do so by the Collateral Agent, will as promptly as practicable)
cause each of the Pledged Securities (or any portion thereof specified in such direction) to be transferred of record into the
name of the Collateral Agent or its nominee. Each Grantor will take any and all actions reasonably requested by the Collateral
Agent to facilitate compliance with this Section. If the provisions of this Section are implemented, Section ‎7(b)
shall not thereafter apply to any Pledged Security that is registered in the name of the Collateral Agent or its nominee. The Collateral
Agent will promptly give to the relevant Grantor copies of any notices and other communications received by the Collateral Agent
with respect to Pledged Securities registered in the name of the Collateral Agent or its nominee.

 

SECTION 12. Right to Vote Securities.
If an Event of Default shall have occurred and be continuing, the Collateral Agent will have the exclusive right to the extent
permitted by law to vote, to give consents, ratifications and waivers and to take any other reasonable action with respect to the
Pledged Investment Property and the other Pledged Equity Interests, with the same force and effect as if the Collateral Agent were
the absolute and sole owner thereof, and each Grantor will take all such reasonable action as necessary or as the Collateral Agent
may reasonably request from time to time to give effect to such right.

 

SECTION 13. [Reserved.]

 

SECTION 14. Remedies upon Event of Default.
(a) If an Event of Default shall have occurred and be continuing, the Collateral Agent may exercise (or cause its sub-agents to
exercise) any or all of the remedies available to it (or to such sub-agents) under this Agreement.

 

    	 	18	 

     

    

 

(b)          Without
limiting the generality of the foregoing, if an Event of Default shall have occurred and be continuing, the Collateral Agent may
exercise on behalf of the Secured Parties all the rights of a secured party under the UCC (whether or not in effect in the jurisdiction
where such rights are exercised) or other applicable law or in equity with respect to any Personal Property Collateral and, in
addition, the Collateral Agent may, without being required to give any notice, except as herein provided or as may be required
by mandatory provisions of law, sell or otherwise dispose of the Collateral or any part thereof in one or more parcels at public
or private sale, at any exchange, broker’s board or at any of the Collateral Agent’s offices or elsewhere, for cash,
on credit or for future delivery, at such time or times and at such price or prices and upon such other terms as may be commercially
reasonable, irrespective of the impact of any such sales on the market price of the Collateral. To the maximum extent permitted
by applicable law, any Secured Party may be the purchaser of any or all of the Collateral at any such sale and shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold
at any such public sale, to use and apply all of any part of the Secured Obligations as a credit on account of the purchase price
of any Collateral payable at such sale. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale
granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall
be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be
obligated to see to the application of any part of the purchase money paid to the Collateral Agent or such officer or be answerable
in any way for the misapplication thereof. Each purchaser at any such sale shall hold the property sold absolutely free from any
claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by law) all rights of redemption,
stay or appraisal that it now has or may at any time in the future have under any rule of law or statute now existing or hereafter
enacted. The Collateral Agent shall not be obliged to make any sale of Collateral regardless of notice of sale having been given.
The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor,
and such sale may, upon ten (10) days’ prior written notice, be made at the time and place to which it was so adjourned.
To the maximum extent permitted by law, each Grantor hereby waives any claim against any Secured Party arising because the price
at which any Collateral may have been sold at such a private sale was less than the price that might have been obtained at a public
sale, even if the Collateral Agent accepts the first offer received and does not offer such Collateral to more than one offeree.
The Collateral Agent may disclaim any warranty, as to title or as to any other matter, in connection with such sale or other disposition,
and its doing so shall not be considered adversely to affect the commercial reasonableness of such sale or other disposition.

 

(c)          If
the Collateral Agent sells any of the Collateral upon credit, the Grantors will be credited only with payment actually made by
the purchaser, received by the Collateral Agent and applied in accordance with Section 15 hereof. In the event the purchaser fails
to pay for the Collateral, the Collateral Agent may resell the same, subject to the same rights and duties set forth herein.

 

(d)          Notice
of any such sale or other disposition shall be given to the relevant Grantor(s) as (and if) required by ‎Section
17.

 

(e)          At
any time after the occurrence and during the continuance of an Event of Default upon the written demand of the Collateral Agent,
each Grantor shall execute and deliver to the Collateral Agent an assignment or assignments, in favor of the Collateral Agent or
its designee, of such Grantor’s right, title, and interest in, to and under the Intellectual Property included in the Collateral
in recordable form as applicable, and such other documents as are necessary or appropriate to carry out the intent and purposes
hereof.

 

    	 	19	 

     

    

 

(f)          For
the purpose of enabling the Collateral Agent to exercise rights and remedies under this Agreement at such time as the Collateral
Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent an unlimited
irrevocable, worldwide, royalty-free, fully paid-up license and sublicense to use, license or sublicense any of the Collateral
consisting of Intellectual Property now owned or hereafter acquired by such Grantor to make, have made, use, sell, copy, distribute,
perform, make derivative works, publish, and exploit in any other manner for which an authorization from the owner of such Intellectual
Property would be required under applicable law, provided that the applicable Grantor shall have such rights of quality
control and inspection which are reasonably necessary under applicable law to maintain the validity and enforceability of Trademarks
included in the Collateral. The use of such license by the Collateral Agent may be exercised only upon the occurrence and during
the continuation of an Event of Default; provided, however, that any license, sublicense or other transaction entered
into by the Collateral Agent in accordance herewith shall be binding upon each Grantor notwithstanding any subsequent cure of an
Event of Default.

 

(g)          The
foregoing provisions of this Section shall not apply to Real Property Collateral other than Fixtures as to which such provisions
shall apply to the extent such Fixtures are governed by Article 9 of the UCC.

 

SECTION 15. Application of Proceeds.
Any cash held in the Controlled Deposit Accounts and the proceeds of any sale or other disposition of all or any part of the Collateral
shall be applied in the order specified in Section 6.11 of the Indenture.

 

SECTION 16. Fees and Expenses; Indemnification.
(a)The Issuer and the Guarantors will jointly and severally forthwith upon demand pay to the Collateral Agent:

 

(i)          the
amount of any taxes that the Collateral Agent may have been required to pay by reason of the Transaction Liens or to free any Collateral
from any other Lien thereon;

 

(ii)         the
amount of any and all reasonable and documented out-of-pocket expenses, including transfer taxes and reasonable fees and expenses
of counsel and other experts, that the Collateral Agent may incur in connection with (x) the administration or enforcement of this
Agreement, including such expenses as are incurred to preserve the value of the Collateral or the validity, perfection, rank or
value of any Transaction Lien, (y) the collection, sale or other disposition of any Collateral or (z) the exercise by the Collateral
Agent of any of its rights or powers under this Agreement or any other Note Document;

 

(iii)        the
amount of any fees that the Issuer shall have agreed in writing to pay to the Collateral Agent and that shall have become due and
payable in accordance with such written agreement; and

 

(iv)        the
amount required to indemnify the Collateral Agent for, or hold it harmless and defend it against, any loss, liability, claim, damage,
injuries, penalties, action, suits, judgments, costs or expense (including the reasonable fees and expenses of its counsel and
any experts or sub-agents appointed by it hereunder) incurred or suffered by the Collateral Agent in connection with this Agreement
or the other Note Documents, except to the extent that such loss, liability or expense arises from the Collateral Agent’s
gross negligence or willful misconduct as determined by a final judgment issued by a court of competent jurisdiction no longer
subject to appeal or review.

 

    	 	20	 

     

    

 

(b)          If
any transfer tax, documentary stamp tax or other tax is payable in connection with any transfer or other transaction provided for
in this Agreement, the Issuer will pay such tax and provide any required tax stamps to the Collateral Agent or as otherwise required
by law.

 

(c)          The
Issuer shall indemnify each of the Secured Parties, their respective affiliates and the respective directors, officers, agents
and employees of the foregoing (each an “Indemnitee”) against, and hold each Indemnitee harmless from, any and
all liabilities, losses, damages, costs and expenses of any kind (including reasonable expenses of investigation by engineers,
environmental consultants and similar technical personnel and reasonable fees and disbursements of counsel) arising out of, or
in connection with any and all Environmental Liabilities. Without limiting the generality of the foregoing, each Grantor waives
all rights for contribution and all other rights of recovery with respect to liabilities, losses, damages, costs and expenses arising
under or related to Environmental Laws that it might have by statute or otherwise against any Indemnitee.

 

(d)          The
obligations of the Issuer under this Section 16 shall survive the termination of this Agreement and the earlier resignation or
removal of the Collateral Agent.

 

SECTION 17. Authority to Administer Collateral.

 

(a)          Each
Grantor irrevocably appoints the Collateral Agent its true and lawful attorney, with full power of substitution, in the name of
such Grantor, any Secured Party or otherwise, for the sole use and benefit of the Secured Parties, but at the Issuer’s expense,
to the extent permitted by law to exercise, at any time and from time to time while an Event of Default shall have occurred and
be continuing, all or any of the following powers with respect to all or any of such Grantor’s Collateral:

 

(i)          to
demand, sue for, collect, receive and give acquittance for any and all monies due or to become due upon or by virtue thereof,

 

(ii)         to
settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto,

 

(iii)        to
sell, lease, license or otherwise dispose of the same or the proceeds or avails thereof, as fully and effectually as if the Collateral
Agent were the absolute owner thereof, and

 

(iv)        to
extend the time of payment of any or all thereof and to make any allowance or other adjustment with reference thereto;

 

    	 	21	 

     

    

 

provided that, except in the case of Personal Property
Collateral that is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market,
the Collateral Agent will give the relevant Grantor at least ten days’ prior written notice of the time and place of any
public sale thereof or the time after which any private sale or other intended disposition thereof will be made. Any such notice
shall (i) contain the information specified in UCC Section 9-613, (ii) be Authenticated and (iii) be sent to the parties required
to be notified pursuant to UCC Section 9-611(c); provided that, if the Collateral Agent fails to comply with this sentence
in any respect, its liability for such failure shall be limited to the liability (if any) imposed on it as a matter of law under
the UCC.

 

(b)          The
foregoing provisions of this Section shall not apply to Real Property Collateral other than Fixtures as to which such provisions
shall apply to the extent such Fixtures are governed by Article 9 of the UCC.

 

    	 	22	 

     

    

 

SECTION 18. Limitation on Duty in Respect
of Collateral. Beyond the exercise of reasonable care in the custody and preservation thereof, the Collateral Agent will have
no duty as to any Collateral in its possession or control or in the possession or control of any sub-agent or bailee or any income
therefrom or as to the preservation of rights against prior parties or any other rights pertaining thereto. To the extent that
applicable law imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner, the Issuer and
each Guarantor acknowledges and agrees that it is commercially reasonable for the Collateral Agent (a) to fail to incur expenses
reasonably deemed significant by the Collateral Agent to prepare Collateral for disposition or otherwise to complete raw material
or work in process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third
party consents for the collection or disposition of Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against Persons obligated on Collateral or to remove Liens or encumbrances on or any adverse claims against Collateral,
(d) to exercise collection remedies against any other Persons obligated on Collateral directly or through the use of collection
agencies and other collection specialists, (e) to advertise dispositions of Collateral through publications or media of general
circulation, whether or not the Collateral is of a specialized nature, (f) to contact other Persons, whether or not in the same
business as the Issuer or any Guarantor, for expressions of interest in acquiring all or any portion of the Collateral, (g) to
hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the collateral is of a specialized
nature, (h) to dispose of Collateral by utilizing internet sites that provide for the auction of assets of the types included in
the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets, (i) to dispose of
assets in wholesale rather than retail markets, (j) to disclaim disposition warranties, including, without limitation, any warranties
of title, (k) to purchase insurance or credit enhancements to insure the Collateral Agent against risks of loss, collection or
disposition of Collateral, or to provide to the Collateral Agent a guaranteed return from the collection or disposition of Collateral
or (l) to the extent deemed reasonable and appropriate by the Collateral Agent, to obtain the services of brokers, investment bankers,
consultants and other professionals to assist the Collateral Agent in the collection or disposition of any of the Collateral. The
Issuer and each Guarantor acknowledges that the purpose of this Section 18 is to provide non-exhaustive indications of what actions
or omissions by the Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies against
the Collateral and that other actions or omissions by the Collateral Agent shall not be deemed commercially unreasonable solely
on account of not being specifically referred to in this Section 18. Without limitation upon the foregoing, nothing contained in
this Section 18 shall be construed to grant any rights to the Company or any Guarantor or to impose any duties on the Collateral
Agent that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section 18.

 

    	 	23	 

     

    

 

SECTION 19. General Provisions Concerning
the Collateral Agent.

 

(a)          The
provisions of Article 2.05 of the Indenture shall inure to the benefit of the Collateral Agent, and shall be binding upon all Grantors
and all Secured Parties, in connection with this Agreement. Without limiting the generality of the foregoing, (i)the Collateral
Agent shall not be subject to any fiduciary or other implied duties, regardless of whether an Event of Default has occurred and
is continuing, (ii)the Collateral Agent shall not have any duty to take any discretionary action or exercise any discretionary
powers, and (iii) the Collateral Agent shall not have any duty to disclose, and shall not be liable for any failure to disclose,
any information relating to any Grantor that is communicated to or obtained by the bank serving as Collateral Agent or any of its
Affiliates in any capacity. The Collateral Agent shall not be responsible for the existence, genuineness or value of any Collateral
or for the validity, perfection, priority or enforceability of any Transaction Lien, whether impaired by operation of law or by
reason of any action or omission to act on its part under this Agreement. The Collateral Agent shall be deemed not to have knowledge
of any Event of Default unless and until written notice thereof is given to the Collateral Agent by the Issuer or a Secured Party.

 

(b)          Information
as to Secured Obligations and Actions by Secured Parties. For all purposes of this Agreement, including determining the amounts
of the Secured Obligations and whether a Secured Obligation is contingent in nature or not, or whether any action has been taken
under any Secured Agreement, the Collateral Agent will be entitled to rely on information from (i) its own records for information
as to the Holders and actions taken by them, (ii) any Secured Party for information as to its Secured Obligations and actions taken
by it, to the extent that the Collateral Agent has not obtained information from its own records and (iii) the Issuer, to the extent
that the Collateral Agent has not obtained information from the foregoing sources.

 

(c)          Refusal
to Act. The Collateral Agent may refuse to act on any notice, consent, direction or instruction from any Secured Parties or
any agent or similar representative thereof that, in the Collateral Agent’s opinion, (i)is contrary to law or the provisions
of this Agreement or any other Note Document, (ii)may expose the Collateral Agent to liability, financial or otherwise (unless
the Collateral Agent shall have been indemnified, to its reasonable satisfaction, for such liability by the Secured Parties that
gave such notice, consent, direction or instruction), (iii) contrary to any law or regulation or (iv) is unduly prejudicial to
Secured Parties not joining in such notice, consent, direction or instruction.

 

(d)          In
addition to any rights, protections, immunities and indemnities afforded to the Collateral Agent herein, the Collateral Agent shall
be afforded the rights, protections, immunities and indemnities that are afforded to it under the Indenture.

 

    	 	24	 

     

    

 

SECTION 20. Termination of Transaction
Liens; Release of Collateral. (a) The Transaction Liens granted by the Issuer and the Guarantors shall terminate pursuant to
Section 14.10 of the Indenture.

 

(b)          Notwithstanding
anything in the Note Documents to the contrary, at any time before the Transaction Liens granted by the Issuer terminated, the
Collateral Agent may, at the written request of the Issuer, (i) release any Collateral (but not all or substantially all the Collateral)
with the prior written consent of the Holders of at least a majority of the aggregate principal amount of the Notes then outstanding
under the Indenture (including any consents obtained in connection with an exchange offer or tender offer and associated consent
solicitation) or (ii) release all or substantially all the Collateral with the consent of Holders of at least 66 and 2/3% in aggregate
principal amount of the Notes then outstanding under the Indenture (including any consents obtained in connection with a tender
offer or exchange for the Notes).

 

(c)          Upon
any termination of a Transaction Lien or release of Collateral, the Collateral Agent will, at the expense of the relevant Grantor
and, if requested by the Collateral Agent, upon receipt of an Officers’ Certificate and/or Opinion of Counsel (which request,
and determination of whether to require an Officer’s Certificate and an Opinion of Counsel, shall each be at the sole discretion
of the Collateral Agent), each certifying or opining, as applicable, that such release and the execution of documents evidencing
such release are authorized and permitted under the Note Documents and all conditions precedent to such release and to the execution
of documents evidencing such release have been satisfied, execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence the termination of such Transaction Lien or the release of such Collateral, as the case may be.

 

    	 	25	 

     

    

 

SECTION 21. Additional Grantors.
Any Subsidiary may become a party hereto by signing and delivering to the Collateral Agent a Security Agreement Supplement, whereupon
such Subsidiary shall become a “Grantor” as defined herein.

 

SECTION 22. [Reserved.]

 

SECTION 23. Notices. Each notice,
request or other communication given to any party hereunder shall be given in accordance with Section 15.02 of the Indenture, and
in the case of any such notice, request or other communication to a Grantor other than the Issuer, shall be given to it in care
of the Issuer.

 

SECTION 24. No Implied Waivers; Remedies
Not Exclusive. No failure on the part of the Collateral Agent or any other Secured Party to exercise, and no delay in exercising
and no course of dealing with respect to, any right or remedy under this Agreement shall operate as a waiver thereof; nor shall
any single or partial exercise by the Collateral Agent or any Secured Party of any such right or remedy under any Note Document
preclude any other or further exercise thereof or the exercise of any other right or remedy. The rights and remedies under this
Agreement are cumulative and are not exclusive of any other rights or remedies provided by law.

 

SECTION 25. Successors and Assigns.
This Agreement is for the benefit of the Collateral Agent and the Secured Parties. If all or any part of any Secured Party’s
interest in any Secured Obligation is assigned or otherwise transferred, the transferor’s rights hereunder, to the extent
applicable to the obligation so transferred, shall be automatically transferred with such obligation. This Agreement shall be binding
on the Grantors and their respective successors and assigns.

 

SECTION 26. Entire Agreement; Amendments
and Waivers. This Agreement contains the entire agreement of the parties with respect to the subject matter hereof and supersedes
any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Neither this Agreement
nor any provision hereof may be waived, amended, modified or terminated except pursuant to an agreement or agreements in writing
entered into by the Grantors and the Collateral Agent with respect to such waiver, amendment, modification or termination.

 

SECTION 27. Choice of Law. This Agreement
shall be construed in accordance with and governed by the law of the State of New York, except as otherwise required by mandatory
provisions of law and except to the extent that remedies provided by the laws of any jurisdiction other than the State of New York
are governed by the laws of such jurisdiction.

 

SECTION 28. Submission to Jurisdiction.

 

Each of the Issuer and the other Grantors:
(a) agrees that any suit, action or proceeding against it arising out of or relating to this Agreement may be instituted in any
U.S. federal court with applicable subject matter jurisdiction sitting in The City of New York; (b) waives, to the fullest extent
permitted by applicable law, any objection which it may now or hereafter have to the laying of venue of any such suit, action or
proceeding, and any claim that any suit, action or proceeding in such a court has been brought in an inconvenient forum; and (c)
submits to the nonexclusive jurisdiction of such courts in any suit, action or proceeding.

 

    	 	26	 

     

    

 

SECTION 29. Waiver of Jury Trial.
EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED THEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE
THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

SECTION 30. Severability. If any
provision of this Agreement is invalid or unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (i)
the other provisions of this Agreement shall remain in full force and effect in such jurisdiction and shall be liberally construed
in favor of the Collateral Agent and the Secured Parties in order to carry out the intentions of the parties thereto as nearly
as may be possible and (ii) the invalidity or unenforceability of such provision in such jurisdiction shall not affect the validity
or enforceability thereof in any other jurisdiction.

 

SECTION 31. Counterparts. This Agreement
may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery by
any Grantor of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

 

    	 	27	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

	 	Issuer:
	 	 
	 	Protalix BioTherapeutics, Inc.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	Israeli Grantor (solely with respect to the provisions directly relating to the Israeli Grantor’s Intellectual Property registered in the United States of America):
	 	 
	 	Protalix Ltd.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	 	Collateral Agent:
	 	 
	 	Wilmington Savings Fund Society, FSB
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 	28Exhibit 10.4

 

Dated 7 December 2016

 

BETWEEN

 

PROTALIX BIOTHERAPEUTICS, INC.

as the Company

 

AND

 

ALTSHULER SHAHAM TRUSTS LTD.

 

as Security Trustee 

	 	 	 

 

FORM OF SECURITY AGREEMENT/DEBENTURE

UNLIMITED IN AMOUNT 

	 	 	 

  

     

     

    

 

Contents

 

	Clause	 	Page
	 	 	 
	1.	Interpretation	2
	 	 	 
	2.	SECURED OBLIGATIONS	4
	 	 	 
	3.	Creation of FIXED Security	5
	 	 	 
	4.	Release	5
	 	 	 
	5.	Provisions relating to Transaction Security	5
	 	 	 
	6.	Restriction on Dealings	6
	 	 	 
	7.	Representations and Warranties	7
	 	 	 
	8.	Undertakings	8
	 	 	 
	9.	Voting rights, Dividends and Interest	11
	 	 	 
	10.	Prepayment	12
	 	 	 
	11.	Enforcement of Transaction Security	12
	 	 	 
	12.	Security Trustee and Receiver	13
	 	 	 
	13.	Delegation	15
	 	 	 
	14.	Preservation of Security	16
	 	 	 
	15.	Currency Conversion	18
	 	 	 
	16.	Power of Attorney	18
	 	 	 
	17.	Application of Proceeds	19
	 	 	 
	18.	Set Off	20
	 	 	 
	19.	Expenses and Indemnities	20
	 	 	 
	20.	Changes to Parties	20
	 	 	 
	21.	ENTIRE AGREEMENT; Waivers and amendments	20
	 	 	 
	22.	Miscellaneous	21
	 	 	 
	23.	Partial Invalidity	21
	 	 	 
	24.	survival	22
	 	 	 
	25.	Notices	22
	 	 	 
	26.	Counterparts	22
	 	 	 
	27.	Governing Law and Enforcement	22

 

    	 	 1	 

     

    

  

THIS SECURITY AGREEMENT/DEBENTURE is
made on the 7th day of December 2016

 

Between:

 

		(1)	PROTALIX BIOTHERAPEUTICS, INC.,
                                         a Delaware corporation (the “Company”); and

 

		(2)	ALTSHULTER SHAHAM TRUSTS LTD.,
                                         in its capacity as security trustee for the benefit of the Trustee (as defined in the
                                         Indenture (as defined below)) (on behalf of the Holders).

 

Whereas:

  

(A)         On
7 December 2016, an indenture was entered into among the Company, as Issuer, the Israeli Guarantor and the other Guarantors party
thereto, and The Bank of New York Mellon Trust Company, N.A., as Trustee on behalf of the Holders (the “Trustee”),
and Wilmington Savings Fund Society, FSB, as Collateral Agent, pursuant to which the Company will issue the Notes to the Holders
on the terms set forth therein (the “Indenture”).

 

(B)         The
Trustee is the sole beneficiary of the trust established by the Security Trustee in connection with its role as security trustee
under this Agreement.

 

(C)         In
order to secure the full and punctual payment and performance when due of the obligations of the Company and the Guarantors under
the Note Documents, the Company has agreed to charge and pledge the Security Assets in favor of the Security Trustee in accordance
with the terms hereof.

 

(D)         All
actions, transfers and issuances under this Agreement shall be carried out by the Security Trustee in accordance with a letter
of instruction provided by the Trustee to the Security Trustee (the “Letter of Instruction”). Any and all actions
to be carried out by the Security Trustee under this Agreement will be carried out only following receipt of a Letter of Instruction.

 

It
is agreed as follows:

 

1.          Interpretation

 

1.1        Definitions

 

In this Security Agreement/Debenture (this
“Agreement”), unless the context otherwise requires:

 

		(a)	capitalized terms used but not otherwise
                                         defined in this Agreement shall have the meanings ascribed to them in the Indenture;
                                         and

 

		(b)	in addition:

 

    	 	 2	 

     

    

 

Applicable Law means:

 

		(a)	any constitution, treaty, statute,
                                         code, law, regulation, ordinance, rule, judgment, rule of law, official order, judicial
                                         order, writ, decree, request, approval, concession, grant, franchise, license, directive,
                                         guideline, policy, standard, plan or requirement; and

 

		(b)	any similar form of decision of, or
                                         determination by, or any interpretation or administration of any of the foregoing (whether
                                         or not having the force of law) of any governmental authority,

 

whether in effect as of
the date hereof or thereafter and in each case as amended, re-enacted or replaced.

 

Bankruptcy Law means Title 11,
United States Code, or any similar U.S. federal, state or non-U.S. law for the relief of debtors.

 

Collateral Agent means
Wilmington Savings Fund Society, FSB, in its capacity as collateral agent under the Indenture.

 

Equity Interest means Capital
Stock (as defined in the Indenture); provided, however, that “Equity Interests” does not include any debt security
that is convertible into, or exchangeable for, (a) Capital Stock or (b) Capital Stock and/or cash based on the value of such
Capital Stock).

 

Event of Default
means an Event of Default as set out in Section 6.01 of the Indenture, a copy of which clause is attached for information purposes
at Schedule 1 (Events of Default) to this Agreement.

 

Guarantee Law means
the Israeli Guarantee Law, 5727-1967.

 

Israeli Guarantor
means Protalix Ltd., a private limited company duly organized under the laws of the State of Israel with company number
51-190328-8 and having its registered office at Snunit 2, Carmiel 2161401, Israel.

 

NIS means
the lawful currency of the State of Israel from time to time.

 

Payment in Full
means when all obligations of the Company and the Guarantors under the Note Documents have been paid in full (other than contingent
indemnification and expense reimbursement obligations and tax gross-up or yield protection obligations which, in each case, survive
the termination of the Note Documents and in respect of which no claim has been made).

 

Permitted Liens means (i) the
Security Interests created under this Agreement and (ii) any other Security Interests in the Security Assets permitted to be created
or assumed or to exist pursuant to Section 4.16 of the Indenture.

 

Person means
any individual, corporation, limited liability company, partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, or government or any agency or political subdivision thereof.

 

Pledges Law means
the Israeli Pledges Law, 5727-1967.

 

    	 	 3	 

     

    

 

Receiver means
a receiver, conservator, liquidator, trustee, administrator, custodian, assignee for the benefit of creditors, officer for the
implementation of a reorganization process (“halichei havraa”) or similar Person charged with the reorganization
or liquidation of the Company’s business.

 

Related Rights
means:

 

		(a)	subject to Clause 9 (Voting Rights,
                                         Dividends and Interest), all payments of principal, and all interest, dividends or
                                         other distributions, whether paid or payable in cash, instruments or other property from
                                         time to time received, receivable or otherwise distributed in respect of, in exchange
                                         for or upon the conversion of, and all other proceeds received in respect of, the Equity
                                         Interests in the Israeli Guarantor;

 

		(b)	subject to Clause 9 (Voting Rights,
                                         Dividends and Interest), all other rights and privileges of the Company with respect
                                         to the Equity Interests in the Israeli Guarantor; and

 

		(c)	all proceeds of any of the foregoing.

 

Secured Obligations
has the meaning given to it in Clause 2 (Secured Obligations). 

 

Secured Parties means
the Trustee, the Security Trustee, the Collateral Agent and the Holders.

 

Security Assets
means all the assets of the Company from time to time mortgaged, charged or assigned or expressed to be mortgaged, charged or
assigned pursuant to this Agreement.

 

Security Interest
means any mortgage, pledge, lien, charge (whether fixed or floating), assignment, hypothecation, deposit arrangement,
encumbrance, conditional sale, title retention, preferential right, priority, trust arrangement or security interest or any other
agreement or arrangement having a similar effect.

 

Transaction Security
means the Security Interests created or expressed to be created in favor of the Security Trustee for the benefit of the
Trustee (on behalf of the Holders) pursuant to this Agreement.

 

1.2         Construction

 

		(a)	Unless a contrary indication appears
                                         in this Agreement, the provisions of Section 1.03 of the Indenture shall apply to this
                                         Agreement as if set out in full in this Agreement.

 

		(b)	The word “asset” shall
                                         be construed to refer to any and all present and future Equity Interest in the Israeli
                                         Guarantor and Related Rights.

 

		(c)	The fact that the details of any assets
                                         in the Schedules are incorrect or incomplete shall not affect the validity or enforceability
                                         of this Agreement in respect of the assets of the Company.

 

		(d)	Headings used in this Agreement are
                                         for convenience of reference only, are not part of this Agreement and shall not affect
                                         the construction of, or be taken into consideration in interpreting, this Agreement.

 

2.           SECURED
OBLIGATIONS

 

		(a)	This Agreement secures the due and
                                         punctual payment and discharge in full of the obligations of the Company and the Guarantors
                                         under the Note Documents when due and payable, without limitation in amount, under the
                                         terms of and in the manner provided for in the Note Documents (the “Secured
                                         Obligations”).

 

    	 	 4	 

     

    

 

		(b)	The Company acknowledges to the Security
                                         Trustee that the amount secured by this Agreement is the full amount of the obligations
                                         of the Company and the Guarantors under the Note Documents.

 

3.            Creation
of FIXED Security

 

As continuing security for
the full and punctual payment or performance when due (whether at stated maturity, acceleration or otherwise) of the Secured Obligations,
the Company hereby absolutely and unconditionally charges in favor of the Security Trustee (as security trustee for the benefit
of the Trustee (on behalf of the Holders)), by way of first ranking fixed charge and first ranking assignment by way of security:

 

		(a)	all of its Equity Interests in the
                                         Israeli Guarantor (currently those Equity Interests set forth in Schedule 2 (Equity
                                         Interests)) together with all Related Rights;

 

		(b)	all of its rights to any exemption,
                                         relief or discount which may reduce or minimize any tax rate or tax liability or any
                                         part thereof (to the extent the Company is entitled to such at the date of the enforcement
                                         of the Security Assets) (the “Tax Reliefs”); and

 

		(c)	its rights to compensation (including
                                         under the Property Tax and Compensation Fund Law, 5721-1961), indemnification and any
                                         other right that it shall have against any third party for the loss, damage or expiration
                                         of the Security Assets or in relation to any Tax Reliefs.

 

4.            Release

 

Immediately after Payment in Full (but subject
to Sections 12.05 and 14.04 of the Indenture), the Security Trustee shall, after having received a Letter of Instruction from
the Trustee and at the cost of the Company, execute such notices to any applicable governmental authority as the Company may reasonably
require in order to give effect to such release.

 

5.            Provisions
relating to Transaction Security

 

		(a)	All security created under this Agreement:

 

		(i)	is created in favor of the Security
                                         Trustee for the benefit of the Trustee (on behalf of the Holders);

 

		(ii)	is, to the maximum extent permitted
                                         by Applicable Law, created over the present and future Equity Interests in the Israeli
                                         Guarantor and Related Rights;

 

		(iii)	is a continuing security for
                                         the payment, discharge and performance of all of the Secured Obligations, shall extend
                                         to the ultimate balance of all sums payable under the Note Documents regardless of any
                                         intermediate payment or discharge in whole or in part and shall remain in full force
                                         and effect until confirmation in writing by the Security Trustee (not to be unreasonably
                                         withheld) that Payment in Full has occurred; and

 

		(iv)	is in addition to, is independent
                                         of and is not in any way prejudiced or affected by any of the other Note Documents.

 

    	 	 5	 

     

    

 

		(b)	The Security Trustee or the Collateral
                                         Agent shall not be bound to enforce any other Note Document before enforcing the Security
                                         Interests created by this Agreement.

 

		(c)	If an amount paid to any Holder under
                                         any Note Document is, in the reasonable judgment of the Trustee, capable of being avoided
                                         or otherwise set aside on the liquidation or administration of the payer or otherwise,
                                         the Transaction Security and the liability of the Company under this Agreement shall
                                         continue, and such amount will not be considered to have been irrevocably paid for the
                                         purposes of this Agreement.

 

		(d)	Until Payment in Full, the Company
                                         remains liable to observe and perform all conditions and obligations assumed by it in
                                         relation to the Security Assets. The Security Trustee is under no obligation to perform
                                         or fulfill any such condition or obligation or to make any payment in respect of any
                                         such condition or obligation, unless a Letter of Instruction is provided.

 

		(e)	The exercise by the Security Trustee
                                         of any of the rights or remedies hereunder shall not release the Company from any of
                                         its liabilities or obligations under the Note Documents or any other agreement or instrument
                                         included in the Security Assets until Payment in Full. For the avoidance of doubt, until
                                         Payment in Full, the application of the Security Assets to satisfy part of the Secured
                                         Obligations shall not release the Company from its obligation to pay and perform the
                                         Secured Obligations in full.

 

		(f)	Following an Event of Default and during
                                         the continuation thereof, in the event of enforcement by the Security Trustee (acting
                                         in accordance with a Letter of Instruction) of any of the Security Assets deposited with
                                         it in accordance with the provisions of section 17(3) and 19(a) of the Pledges Law, then
                                         seven (7) Business Days advance notice to the Company regarding the steps that the Security
                                         Trustee intends to take shall be deemed to be reasonable advance notice for the purpose
                                         of section 19(b) of the Pledges Law.

 

6.           Restriction
on Dealings

 

The Company may not:

 

		(a)	create or permit to subsist any Security
                                         Interest on any of the Security Assets; or

 

		(b)	(whether by a single transaction or
                                         a number of related or unrelated transactions and whether voluntarily or involuntarily)
                                         assign, charge, lease, transfer or otherwise dispose of all or any part of its right,
                                         title and interest in and to the Security Assets,

 

in each case unless expressly permitted to
do so under the Note Documents.

 

    	 	 6	 

     

    

 

7.           Representations
and Warranties

 

7.1         General
representations and warranties

 

The Company represents and
warrants to the Security Trustee for the benefit of the Trustee (on behalf of the Holders) that:

 

		(a)	the Company has good and valid rights
                                         in and title to the Security Assets with respect to which it has purported to grant the
                                         Security Interest hereunder (other than (a) minor defects in title that do not interfere
                                         with its ability to (i) conduct its business as currently conducted or as proposed to
                                         be conducted or to utilize such properties for their intended purposes or (ii) grant
                                         a Security Interest in the Security Assets or (b) as would not reasonably be expected
                                         to have a Material Adverse Effect). The Company has full power and authority to grant
                                         to the Security Trustee, for the benefit of the Trustee (on behalf of the Holders), the
                                         Security Interest in the Security Assets and to execute, deliver and perform its obligations
                                         in accordance with the terms of this Agreement, without the consent or approval of any
                                         other Person other than (a) any consent or approval that has been obtained and (b) filings
                                         necessary to perfect the Security Interests created under this Agreement;

 

		(b)	after the date of this Agreement, no
                                         Security Asset owned by the Company will be in the possession or under the Control (as
                                         such term is defined in the Uniform Commercial Code as in effect from time to time in
                                         the State of New York) of any other Person having a claim thereto or Security Interest
                                         therein, other than a Permitted Lien;

 

		(c)	the Security Assets are free from any
                                         Security Interest or option to purchase or similar right (other than as permitted under
                                         the Note Documents);

 

		(d)	the Company has good and marketable
                                         title to all Security Assets (subject to exceptions that are, in the aggregate, not material),
                                         free and clear of any Security Interest other than Permitted Liens;

 

		(e)	there is no restriction or condition
                                         under any law or agreement which is applicable to pledging or charging the Security Assets,
                                         and the Company is permitted to charge the Security Assets, except as would not reasonably
                                         be expected to have a Material Adverse Effect;

 

		(f)	the Transaction Security creates a
                                         first ranking Security Interest over the Security Assets and is not subject to any prior
                                         ranking or pari passu ranking Security Interest (other than Permitted Liens);

 

		(g)	there is no restriction or condition
                                         under any law or agreement which is applicable to the transfer or enforcement of the
                                         Security Assets, except as would not reasonably be expected to have a Material Adverse
                                         Effect;

 

		(h)	the Company’s signature on this
                                         Agreement and the performance of all of its obligations hereunder do not conflict or
                                         contradict any ruling, order, directive or instruction of any governmental authority
                                         of any kind whatsoever and do not contravene the Company’s constitutional documents,
                                         except as would not reasonably be expected to have a Material Adverse Effect;

 

		(i)	each of the obligations expressed to
                                         be assumed by it under this Agreement are legal, valid, binding and enforceable obligations,
                                         subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws
                                         affecting creditors’ rights generally and subject to general principles of equity,
                                         regardless of whether considered in a proceeding in equity or at law and have been duly
                                         authorized by all necessary corporate or other organizational action; and this Agreement
                                         has been duly executed and delivered by the Company and constitutes a legal, valid and
                                         binding obligation of the Company, enforceable against the Company in accordance with
                                         its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
                                         other laws affecting creditors’ rights generally and subject to general principles
                                         of equity, regardless of whether considered in a proceeding in equity or at law;

 

    	 	 7	 

     

    

 

		(j)	Schedule 2 (Equity Interests)
                                         sets forth, as of the Issue Date, a true and complete list of all of the Equity Interests
                                         owned by the Company in the Israeli Guarantor;

 

		(k)	the Israeli Guarantor is a wholly-owned
                                         Subsidiary of the Company, beneficially and of record, and the Equity Interests held
                                         by the Company in the Israeli Guarantor are fully paid and nonassessable; and

 

		(l)	as of the date of this Agreement, no
                                         Event of Default has occurred nor, to the best of the Company’s knowledge, have
                                         any circumstances occurred which, with the passage of time or following the provision
                                         of any notice or warning, shall constitute an Event of Default.

 

7.2         Times
for making representations and warranties

 

The representations and warranties set out
in this Agreement are:

 

		(a)	made by the Company on the date of
                                         this Agreement; and

 

		(b)	(unless expressed to be given at a
                                         specific date) deemed to be repeated by the Company on each date prior to Payment in
                                         Full on which any of the representations and warranties set out in the Note Documents
                                         are repeated,

 

in each case by reference to the circumstances
existing at such time.

 

8.           Undertakings

 

8.1         General
Undertakings

 

The Company hereby undertakes to the Security
Trustee for the benefit of the Trustee (on behalf of the Holders) from the date of this Agreement until Payment in Full:

 

		(a)	to deliver to the Security Trustee:

 

		(i)	on the Issue Date, all share certificates
                                         relating to the Security Assets, together with executed but undated deeds of transfer
                                         in respect of all Equity Interests held by the Company in the Israeli Guarantor (in a
                                         form reasonably satisfactory to the Security Trustee); and

 

		(ii)	as promptly as practicable and,
                                         in any event, within 30 days (or such longer period as the Security Trustee may agree
                                         to in writing) after the acquisition thereof, any additional share certificates relating
                                         to new Equity Interests held by the Company in the Israeli Guarantor, together with new
                                         executed but undated deeds of transfer in respect of such additional Equity Interests
                                         (in a form reasonably satisfactory to the Security Trustee;

 

		(b)	to the extent the Israeli Guarantor
                                         issues any noncash dividends, interest, principal or other distributions that would constitute
                                         Security Assets, whether resulting from a subdivision, combination or reclassification
                                         of the issued and outstanding Equity Interests in the Israeli Guarantor or received in
                                         exchange for Equity Interests in the Israeli Guarantor or any part thereof, or in redemption
                                         thereof, or as a result of any merger, consolidation, acquisition or other exchange of
                                         assets to which the Israeli Guarantor may be a party or otherwise, such noncash dividends,
                                         interest, principal or other distributions shall be and become part of the Security Assets
                                         and, if required by the Security Trustee, the Company shall promptly duly execute and
                                         deliver a supplement to this Agreement or an additional Security Document in respect
                                         of such noncash dividends, interest, principal or other distributions;

 

    	 	 8	 

     

    

 

		(c)	to procure that the Security Interests
                                         created in favor of the Security Trustee under this Agreement are noted in the register
                                         of shareholders of the Israeli Guarantor;

 

		(d)	on the Issue Date, to furnish an irrevocable
                                         notice to the Israeli Guarantor, countersigned by the Israeli Guarantor, in the form
                                         attached as Schedule 3 (Irrevocable Instructions) to this Agreement;

 

		(e)	not to sell, transfer, assign, lease,
                                         borrow, rent, provide or remove from its possession any of the Security Assets or any
                                         related right and not to permit any other Person to make use of any Security Asset in
                                         any way or provide any other Person an attorney of power or proxy in connection with
                                         the Security Assets, in each case, unless permitted to do so under the Note Documents;

 

		(f)	the Company shall, at its own expense,
                                         use commercially reasonable efforts to defend the Security Interests granted to the Security
                                         Trustee in the Security Assets and the priority thereof against any Person asserting
                                         any Security Interest not permitted under the Note Documents;

 

		(g)	the Security Trustee may discharge
                                         past due Taxes, assessments, charges, fees and Security Interests at any time levied
                                         or placed on the Security Assets that are not permitted under the Note Documents, and
                                         may pay for the maintenance and preservation of the Security Assets to the extent the
                                         Company fails to do so as required by this Agreement or the other Note Documents after
                                         the Security Trustee has requested in writing that the Company does so and the Company
                                         fails to do so within five (5) Business Days, and the Company agrees to reimburse the
                                         Security Trustee reasonably promptly on demand for any reasonable payment made or any
                                         reasonable expense incurred by the Security Trustee pursuant to the foregoing authorization
                                         (and any such payment made or expense waived shall constitute a Secured Obligation);
                                         provided, however that nothing in this Clause 8.1(g) shall be interpreted as excusing
                                         the Company from the performance of, or imposing any obligation on the Security Trustee
                                         to cure or perform, any covenants or other obligations of the Company with respect to
                                         Taxes, assessments, charges, fees and Security Interests and maintenance as set forth
                                         herein or in the other Note Documents;

 

		(h)	the Security Trustee shall not have
                                         any responsibility for, or liability for its failure in, observing or performing any
                                         obligations to be observed and performed by the Company under any contract, agreement
                                         or instrument relating to the Security Assets, and the Company agrees to indemnify and
                                         hold harmless the Security Trustee from and against any and all liability for such performance;

 

		(i)	upon an Event of Default and after
                                         receiving written notice from the Security Trustee (acting in accordance with a Letter
                                         of Instruction) with respect thereto, to provide the Security Trustee or a bailee on
                                         its behalf the Security Assets, in whole or in part, in accordance with and subject to
                                         the provisions of the Note Documents; and

 

		(j)	so long as any of the Secured Obligations
                                         (other than inchoate Secured Obligations) remain unsatisfied:

 

    	 	 9	 

     

    

 

		(i)	from time to time, at the Company’s
                                         expense, execute, deliver, file and record any statement, assignment, instrument, document,
                                         agreement or other paper and take any other action (including any filings in connection
                                         with the recordation of the Security Interest of the Security Trustee in any Intellectual
                                         Property) that from time to time may be commercially reasonable, necessary or desirable,
                                         or that the Security Trustee may reasonably request, in order to:

 

		(A)	create, preserve, perfect, confirm
                                         or validate the Transaction Security on the Security Assets; or

 

		(B)	enable the Security Trustee to exercise
                                         and enforce any of its rights, powers and remedies with respect to any of the Security
                                         Assets; and

 

		(ii)	promptly upon request, provide
                                         to the Security Trustee all information and evidence concerning the Security Assets that
                                         the Security Trustee may reasonably request from time to time to enable it to enforce
                                         the provisions of this Agreement.

 

8.2         Notice
Obligations

 

The Company hereby undertakes to the Security
Trustee for the benefit of the Trustee (on behalf of the Holders) from the date of this Agreement until Payment in Full, to notify
the Security Trustee in writing as soon as possible after it becomes aware of any of the following (in each case pursuant to or
within the meaning of any Bankruptcy Law):

 

		(a)	the Company (i) commences a voluntary
                                         case, (ii) consents to the entry of an order for relief against it in an involuntary
                                         case, (iii) consents to the appointment of a Receiver for it or for any substantial part
                                         of its property, (iv) makes a general assignment for the benefit of its creditors or
                                         (v) generally is not paying its debts as they become due; or

 

		(b)	a court of competent jurisdiction enters
                                         an order or decree under any Bankruptcy Law that (i) is for relief against the Company
                                         in an involuntary case or proceeding, (ii) appoints a Receiver for the Company or
                                         for any substantial part of its property or (iii) orders the winding up or liquidation
                                         of the Company and, in each case, such order or decree remains unstayed and in effect
                                         for 60 days.

 

8.3         Security
Trustee’s right to perform

 

If the Company for any reason
whatsoever fails to duly and punctually observe or perform or comply with any of its obligations under this Agreement, including
under this Clause ‎8 (Undertakings), after the Security Trustee (acting in accordance with a Letter of Instruction)
has requested in writing that the Company do so and the Company fails to do so within five (5) Business Days, the Security Trustee
shall have the power, on behalf of or in the name of the Company or otherwise, after having received a Letter of Instruction,
to perform the obligation and to take any steps which the Trustee may consider appropriate with a view to remedying, or mitigating
the consequences of the failure, but without in any way becoming liable therefor (other than as a result of its bad faith, gross
negligence or willful misconduct) and provided that the exercise of this power, or the failure to exercise it, shall in no circumstances
prejudice the Security Trustee’s rights hereunder. The Company shall reimburse the Security Trustee for any damage, loss,
costs or expenses incurred in connection with exercising its right under this Clause ‎8.3.

 

    	 	 10	 

     

    

 

9.            Voting
rights, Dividends and Interest

 

		(a)	Unless and until an Event of Default
                                         shall have occurred and be continuing and, other than in the case of an Event of Default
                                         under Section 6.01(a)(xiii) or (xiv) of the Indenture, the Security Trustee (acting in
                                         accordance with a Letter of Instruction) shall have provided written notice to the Company
                                         that the Company’s rights, in whole or in part, under this Clause 9 are being suspended:

 

		(i)	the Company shall be entitled to
                                         exercise any and all voting and/or other consensual rights and powers inuring to the
                                         Equity Interests in the Israeli Guarantor or any part thereof for any purpose not inconsistent
                                         with the terms of this Agreement and the other Note Documents; and

 

		(ii)	the Company shall be entitled
                                         to receive and retain any and all dividends, interest, principal and other distributions
                                         paid on or distributed in respect of the Security Assets; provided that any noncash dividends,
                                         interest, principal or other distributions that would constitute Security Assets, whether
                                         resulting from a subdivision, combination or reclassification of the issued and outstanding
                                         Equity Interests in the Israeli Guarantor or received in exchange for Equity Interests
                                         in the Israeli Guarantor or any part thereof, or in redemption thereof, or as a result
                                         of any merger, consolidation, acquisition or other exchange of assets to which the Israeli
                                         Guarantor may be a party or otherwise, shall be and become part of the Security Assets
                                         and, if received by the Company, required to be delivered to the Security Trustee hereunder,
                                         shall be held in trust for the benefit of the Security Trustee and the other Secured
                                         Parties and shall be forthwith delivered to the Security Trustee in the form in which
                                         they shall have been received (with any endorsements, stock or note powers, deeds of
                                         transfer and other instruments of transfer reasonably requested by the Security Trustee).

 

		(b)	Upon the occurrence and during the
                                         continuance of an Event of Default, and, other than in the case of an Event of Default
                                         under Section 6.01(a)(xiii) or (xiv) of the Indenture, after the Security Trustee (acting
                                         in accordance with a Letter of Instruction) shall have provided written notice to the
                                         Company of the suspension of the Company’ rights under Clause 9(a)(i) above, all
                                         rights of the Company to exercise the voting and consensual rights and powers it is entitled
                                         to exercise pursuant to Clause 9(a)(i) above, shall thereupon become vested in the Security
                                         Trustee, which shall have the sole and exclusive right and authority to exercise such
                                         voting and consensual rights and powers, according to instructions provided in the Letter
                                         of Instructions. After all Events of Default have been cured or waived, all rights vested
                                         in the Security Trustee pursuant to this paragraph (b) shall cease, the Company shall
                                         have the exclusive right to exercise the voting and consensual rights and powers they
                                         would otherwise be entitled to exercise prior to such vesting.

 

    	 	 11	 

     

    

 

		(c)	Upon the occurrence and during the
                                         continuance of an Event of Default, and, other than in the case of an Event of Default
                                         under Section 6.01(a)(xiii) or (xiv) of the Indenture, after the Security Trustee (acting
                                         in accordance with a Letter of Instruction) shall have provided written notice to the
                                         Company of the suspension of the Company’s rights under Clause 9(a)(ii) above,
                                         all rights of the Company to dividends, interest, principal or other distributions that
                                         the Company is authorized to receive pursuant to Clause 9(a)(ii) above, shall thereupon
                                         become vested in the Security Trustee, which shall have the sole and exclusive right
                                         and authority to receive and retain such dividends, interest, principal or other distributions.
                                         All dividends, interest, principal and other distributions received by the Company contrary
                                         to the provisions of this Clause 9 shall be held in trust for the benefit of the Security
                                         Trustee and the other Secured Parties, shall be segregated from other property or funds
                                         of the Company and shall be forthwith delivered to the Security Trustee upon written
                                         demand in the form in which they shall have been received (with any necessary endorsements,
                                         stock powers or other instruments of transfer). Any and all money and other property
                                         paid over to or received by the Security Trustee pursuant to the provisions of this Clause
                                         9(c) shall be retained by the Security Trustee in an account to be established by the
                                         Security Trustee for the benefit of the Trustee (on behalf of the Holders) upon receipt
                                         of such money or other property, shall be held as security for the payment of the Secured
                                         Obligations and shall be applied in accordance with the provisions of Clause 17
                                         (Application of Proceeds). After all Events of Default have been cured or waived,
                                         the Security Trustee shall within reasonable time repay to the Company (without interest)
                                         all dividends, interest, principal or other distributions that the Company would otherwise
                                         have been permitted to retain pursuant to the terms of Clause 9(a)(ii) above and that
                                         remain in such account and the Company will have the right to exercise the voting and
                                         consent rights that the Company would otherwise be entitled to exercise pursuant to the
                                         terms of Clause 9(a) above.

 

		(d)	The Company hereby appoints the Security
                                         Trustee as its proxy in respect of the Equity Interests in the Israeli Guarantor and
                                         any Related Rights owned by it, such that the Security Trustee shall be entitled, upon
                                         the voting and consensual rights and powers becoming vested in the Security Trustee and
                                         the delivery of a Letter of Instruction in such respect: (i) to vote the Equity Interests
                                         in the Israeli Guarantor owned by the Company in the Company’s name and on the
                                         Company’s behalf on all resolutions of the shareholders of the Israeli Guarantor
                                         in any general meeting, extraordinary meeting or any other shareholder meeting (including
                                         any adjourned meeting) held from to time; (ii) to appoint directors to the board of directors
                                         of the Israeli Guarantor in the Company’s name and on the Company’s behalf
                                         and (iii) to exercise all other shareholders’ rights in respect of the Equity Interests
                                         in the Israeli Guarantor and any Related Rights owned by the Company, in each case, in
                                         such manner as the Security Trustee may deem fit.

 

10.         Prepayment

 

Other than as expressly
permitted under the Note Documents, neither the Company nor any Person having a right liable to be affected by the pledges and
charges hereby created or the enforcement thereof shall have any right under section 13(b) of the Pledges Law or any other statutory
provisions in substitution therefor.

 

11.         Enforcement
of Transaction Security

 

11.1      Timing
and manner of enforcement

 

		(a)	The Transaction Security shall become
                                         enforceable immediately:

 

		(i)	upon the occurrence and during
                                         the continuation of an Event of Default and after the Security Trustee has notified the
                                         Company in writing that it intends to exercise remedies; or

 

		(ii)	upon the appointment of a Receiver
                                         over any of the assets of the Company.

 

    	 	 12	 

     

    

 

		(b)	Without prejudice to any specific provisions
                                         contained in this Agreement, immediately after the Transaction Security has become enforceable,
                                         the Security Trustee may enforce all or any part of the Transaction Security as instructed
                                         by the Trustee in the Letter of Instruction.

 

		(c)	None of the Security Trustee, the Collateral
                                         Agent, the Trustee or any Holder shall be liable to the Company for any loss arising
                                         from the manner in which the Security Trustee enforces or refrains from enforcing the
                                         Transaction Security.

 

11.2       Protection
of third parties

 

		(a)	No Person (including a purchaser) dealing
                                         with the Security Trustee or a Receiver or any of its or their respective agents shall
                                         be concerned to enquire:

 

		(i)	whether the Secured Obligations
                                         have become payable;

 

		(ii)	whether any power which the Security
                                         Trustee or such Receiver may purport to exercise has become exercisable or is being properly
                                         exercised;

 

		(iii)	whether any amount remains due
                                         under the Note Documents; or

 

		(iv)	how any money paid to the Security
                                         Trustee or to the Receiver is to be applied.

 

		(b)	The receipt by the Security Trustee
                                         or any Receiver of any moneys paid to the Security Trustee or such Receiver by any Person
                                         (including a purchaser) shall be an absolute and conclusive discharge and shall relieve
                                         any Person dealing with the Security Trustee or such Receiver of any obligation to see
                                         to the application of any moneys paid to or at the direction of the Security Trustee
                                         or such Receiver.

 

		(c)	In paragraphs (a) and (b) above, purchaser
                                         includes any Person acquiring, for money or money’s worth, any interest
                                         or right whatsoever in relation to any Security Asset.

 

12.         Security
Trustee and Receiver

 

12.1       Security
Trustee

 

		(a)	If an Event of Default occurs and the
                                         Security Trustee (acting in accordance with a Letter of Instruction) gives notice to
                                         the Company that the Transaction Security is enforceable, the Security Trustee shall
                                         be entitled to take all such steps, as instructed by the Trustee in the Letter of Instruction,
                                         as it sees fit to collect the total amount outstanding under the Secured Obligations
                                         and to enforce, at the Company’s expense, any of the Security Interests created
                                         under this Agreement by any means allowed by Applicable Law including, without limitation:

 

		(i)	exercising any of the rights, remedies
                                         and powers available to it under Applicable Law (including under Article 6 of the Indenture);
                                         and

 

		(ii)	appointing or applying to the
                                         competent court for appointment of a Receiver (as set out in Clause 12.2 (Receiver)).

 

		(b)	To the extent permitted by Applicable
                                         Law, all or any of the powers, authorities and discretions which are conferred by this
                                         Agreement upon a Receiver may be exercised by the Security Trustee (acting in accordance
                                         with a Letter of Instruction) following an Event of Default without first appointing
                                         a Receiver or notwithstanding the appointment of a Receiver.

 

    	 	 13	 

     

    

 

Without derogating
from the above, following an Event of Default and after receiving a Letter of Instruction, the Security Trustee shall be entitled
to exercise any right charged or pledged hereunder in the same manner in which the Company would be entitled to exercise such
right in accordance with the terms of section 20 of the Pledges Law.

 

		(c)	Subject to Applicable Law and without
                                         derogating from subclauses (a) and (b) above, and after receiving a Letter of Instruction,
                                         the Security Trustee shall be entitled, in any proceedings concerning the bankruptcy,
                                         liquidation, winding up or receivership (or similar proceedings) of the Company, to:

 

		(i)	demand, claim, collect and enforce
                                         and prove the Secured Obligations and give acquittal thereunder;

 

		(ii)	file any claims and proofs, give
                                         receipts and take all such proceedings and do all such things as the Security Trustee
                                         sees fit to recover the Secured Obligations; and

 

		(iii)	receive all distributions on
                                         and payments with respect to the Secured Obligations.

 

		(d)	The Company irrevocably makes, constitutes
                                         and appoints the Security Trustee (and its designees) as the Company’s true and
                                         lawful agent (and attorney-in-fact) for the purpose, upon the occurrence and during the
                                         continuance of an Event of Default and written notice to the Company of its intent to
                                         exercise its remedies under Article 6 of the Indenture, of making, settling and adjusting
                                         claims in respect of the Security Assets under policies of insurance, endorsing the name
                                         of the Company on any check, draft, instrument or other item of payment for the proceeds
                                         of such policies of insurance. All sums disbursed by the Security Trustee in connection
                                         with this paragraph, including reasonable out-of-pocket attorneys’ fees, court
                                         costs, expenses and other charges relating thereto, shall be payable reasonably promptly
                                         upon demand by the Company to the Security Trustee and shall constitute Secured Obligations.
                                         Notwithstanding the foregoing, so long as no Event of Default shall have occurred and
                                         be continuing, all insurance payments, proceeds of insurance and any awards arising from
                                         condemnation of any Security Assets received by the Security Trustee in connection with
                                         any loss, damage or destruction of any Security Assets shall be transferred to the Company.

 

		(e)	The Security Trustee shall have all
                                         powers necessary to preserve the Security Assets and the Security Interests created hereby
                                         and to take all such steps for such purpose at the Company’s expense.

 

12.2       Receiver

 

		(a)	The Receiver shall have all powers
                                         conferred by Applicable Law, including, among others, the following rights, powers and
                                         discretions:

 

		(i)	to receive the Security Assets
                                         or any part thereof, seize possession of and eject any Person and thing situated thereon,
                                         on behalf of the Company;

 

		(ii)	to carry on the Company’s
                                         business as it deems fit;

 

    	 	 14	 

     

    

 

		(iii)	to sell or agree to the sale
                                         of the Security Assets in whole or in part, or otherwise dispose of the same on such
                                         conditions as he deems fit, and apply the proceeds thereof towards the Secured Obligations;

 

		(iv)	to enforce, collect and take such
                                         action as will be required vis-à-vis the various authorities to exercise the Company’s
                                         tax rights in respect of the Security Assets, including obtaining an exemption or discount
                                         or concession or right to set off losses, of any kind whatsoever; and

 

		(v)	to effect any other act in relation
                                         to the Security Assets in its entirety or in part, as he deems fit, to take immediate
                                         possession of and collect any Security Assets and to require payment to it or to the
                                         Security Trustee of any monetary claims or credit balance on any account.

 

		(b)	The Company alone shall be responsible
                                         for the acts and omissions of the Receiver (other than for the Receiver’s gross
                                         negligence or willful misconduct) and for the Receiver’s remuneration. Under no
                                         circumstances shall the Security Trustee, the Collateral Agent, the Trustee or any Holder
                                         be responsible for the acts and omissions of the Receiver or for the Receiver’s
                                         remuneration.

 

12.3       Security
Trustee and Receiver

 

		(a)	Neither the Security Trustee nor the
                                         Receiver, nor any of their respective agents, managers, officers, employees, delegates,
                                         and advisers shall be liable for any claim, demand, liability, loss, damage, cost or
                                         expense which arises out of the exercise or the attempted or purported exercise or the
                                         failure to exercise any of their respective rights, powers and discretions under this
                                         Agreement in the absence of gross negligence or willful misconduct.

 

		(b)	Neither the Security Trustee nor any
                                         Receiver, nor any of their respective agents, managers, officers, employees, delegates,
                                         and advisers shall be under any duty to exercise any of their respective rights, powers
                                         and discretions under this Agreement.

 

		(c)	To the extent permitted by Applicable
                                         Law, the Company hereby waives any requirements with respect to notice, form or the terms
                                         of the exercise by the Security Trustee, the Receiver, or any of their respective agents,
                                         managers, officers, employees, delegates, and advisers of their respective rights, powers
                                         and discretions under this Agreement, except as expressly provided otherwise in the Note
                                         Documents.

 

13.         Delegation

 

		(a)	To the extent permitted by Applicable
                                         Law, the Security Trustee or any Receiver may delegate by power of attorney or in any
                                         other manner to any Person any right, power or discretion exercisable by it under this
                                         Agreement.

 

		(b)	Any delegation under this Clause 13
                                         may be made upon such terms (including the power to sub-delegate) and subject to such
                                         conditions and regulations as the Security Trustee or any Receiver may consider fit.

 

		(c)	Neither the Security Trustee nor any
                                         Receiver shall be in any way liable or responsible to the Company for any claim, expense,
                                         demand, loss or liability arising from any act, default, omission or misconduct on the
                                         part of any delegate.

 

    	 	 15	 

     

    

 

		(d)	References in this Agreement to the
                                         Security Trustee or a Receiver shall be deemed to include references to any delegate
                                         of the Security Trustee or Receiver appointed in accordance with this Clause 13.

 

14.         Preservation
of Security

 

14.1       Guarantee
and Indemnity

 

To the extent enforcement of the Transaction
Security or the guarantee provided under this Agreement becomes unenforceable, invalid or illegal, the Company, as an independent
and primary obligation, hereby indemnifies the Security Trustee promptly on demand against any claim, expense, demand, cost, loss
or liability it incurs as a result of the Company not paying any amount which would, but for such unenforceability, invalidity
or illegality, have been payable by it under any Note Document on the date when it would have been due.

 

14.2       Reinstatement

 

		(a)	If any payment by the Company or any
                                         discharge or release given by the Security Trustee, the Collateral Agent or the Trustee
                                         on behalf of the Holders (whether in respect of the obligations of any Person or any
                                         security for such obligations or otherwise) is avoided or reduced as a result of insolvency
                                         or any similar event:

 

		(i)	the liability of the Company and
                                         the relevant security shall continue as if such payment, discharge, release, avoidance
                                         or reduction had not occurred; and

 

		(ii)	the Security Trustee, the Collateral
                                         Agent or the Trustee on behalf of the Holders, as applicable, shall be entitled to recover
                                         the value or amount of such security or payment from the Company, as if such payment,
                                         discharge, avoidance or reduction had not occurred.

 

		(b)	The Security Trustee (acting in accordance
                                         with a Letter of Instruction) may concede or compromise any claim that any payment, security
                                         or other disposition is liable to avoidance or restoration.

 

14.3       Waiver
of defenses

 

None of the obligations of the Company under
this Agreement or any Transaction Security shall be affected by any act, omission, matter or thing (whether or not known to the
Company, the Security Trustee, the Collateral Agent, the Trustee or any Holder) which, but for this provision, would reduce, release,
prejudice or provide a defense to any of those obligations including:

 

		(a)	any time, waiver, release or consent
                                         granted to, or composition with, the Company, any Guarantor or any other Person;

 

		(b)	the release of the Company, any Guarantor
                                         or any other Person under the terms of any composition or arrangement with any creditor
                                         of the Company, such Guarantor or such other Person, as applicable;

 

		(c)	the taking, variation, compromise,
                                         exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce,
                                         any rights against, or security over the assets of, the Company, any Guarantor or any
                                         other Person;

 

    	 	 16	 

     

    

 

		(d)	any non-presentation or non-observance
                                         of any formality or other requirement in respect of any instrument or any failure to
                                         enforce the full value of any rights against, or security over the assets of, the Company,
                                         any Guarantor or any other Person;

 

		(e)	any incapacity or lack of power, authority
                                         or legal personality of, or dissolution or change in, the members or status of the Company,
                                         any Guarantor or any other Person;

 

		(f)	any amendment (however fundamental
                                         and including any amendment that may increase the liability of the Company, any Guarantor
                                         or any other Person) or replacement of any Note Document or any other document or security;

 

		(g)	any unenforceability, illegality or
                                         invalidity of any obligation of any Person under any Note Document or any other document
                                         or security; or

 

		(h)	any insolvency or similar proceedings.

 

For the avoidance of doubt,
without derogating from the remainder of this Clause 14.3, the Company hereby expressly waives all rights and defenses under sections
4(b), 4(c), 5, 6, 7(b), 8, 9, 11, 12, 15 and 17 of the Guarantee Law, and all rights and defenses under sections 7(b) and 13(b)
of the Pledges Law, and confirms that the provisions of the Guarantee Law and the Pledges Law affording such rights or defenses
to the Company shall not apply to the rights granted to the Security Trustee under this Agreement.

 

14.4       Immediate
recourse

 

		(a)	The Company waives any right it may
                                         have of first requiring the Security Trustee to proceed against or enforce any other
                                         rights or security or claim payment from any Person before claiming from or enforcing
                                         against the Company under this Agreement.

 

		(b)	The waiver in this Clause 14.4 applies
                                         irrespective of any Applicable Law or any provision of any Note Document to the contrary.

 

14.5       Appropriations

 

On and after the occurrence of, and during
the continuation of, an Event of Default and until Payment in Full, the Security Trustee (acting in accordance with a Letter of
Instruction) may, subject to Applicable Law:

 

		(a)	refrain from applying or enforcing
                                         any other moneys, security or rights held or received by the Security Trustee (or any
                                         trustee or agent on its behalf) in respect of such amounts, or apply and enforce the
                                         same in such manner and order as it considers fit (whether against those amounts or otherwise)
                                         and the Company shall not be entitled to the benefit of the same; and

 

		(b)	hold in an interest-bearing suspense
                                         account any moneys received from the Company or on account of the Company’s liability
                                         under this Agreement.

 

14.6       Additional
security/non-merger

 

		(a)	The Transaction Security is in addition
                                         to and not in substitution for or derogation of, and shall not be merged into or in any
                                         way be excluded or prejudiced by, any other Security Interest (whether given by a Company
                                         or otherwise) at any time held by or on behalf of the Security Trustee in respect of
                                         or in connection with any or all of the Secured Obligations.

 

    	 	 17	 

     

    

 

15.         Currency
Conversion

 

		(a)	If any of the Security Trustee, the
                                         Collateral Agent or the Trustee on behalf of the Holders receives any amounts due to
                                         it under any Note Document in a currency other than the currency in which any payment
                                         obligation is expressed to be payable (the “Other Currency”), the
                                         Security Trustee, the Collateral Agent or the Trustee on behalf of the Holders, as applicable,
                                         may convert the Other Currency into the currency necessary for the full or partial discharge
                                         of the Secured Obligations.

 

		(b)	For the purposes of this Clause 15,
                                         the rate of exchange shall be set in accordance with normal banking procedures in the
                                         relevant jurisdiction in which the exchange is to occur at the time elected in the sole
                                         discretion of the Security Trustee, the Collateral Agent or the Trustee on behalf of
                                         the Holders, as applicable, with all fees, costs and expenses associated with such exchange
                                         to be borne by the Company.

 

16.         Power
of Attorney

 

16.1       Appointment

 

The Company irrevocably appoints the Security
Trustee and each Receiver severally as its attorney, with full power of substitution, on its behalf and in its name or otherwise,
at such time and in such manner as the attorney considers fit, but subject to receiving a Letter of Instruction:

 

		(a)	subject to and in accordance with Clause
                                         8.3 (Security Trustee’s right to perform), prior to the occurrence
                                         of an Event of Default, to do anything which the Company is obligated to do under this
                                         Agreement (but has not done);

 

		(b)	to demand, sue for, collect, receive
                                         and give acquittance for any and all monies due or to become due upon or by virtue thereof;

 

		(c)	to settle, compromise, compound, prosecute
                                         or defend any action or proceeding with respect thereto;

 

		(d)	to sell, lease, license or otherwise
                                         dispose of the same or the proceeds or avails thereof, as fully and effectually as if
                                         the Security Trustee were the absolute owner thereof;

 

		(e)	to extend the time of payment of any
                                         or all thereof and to make any allowance or other adjustment with reference thereto;
                                         and

 

		(f)	on and after the occurrence of, and
                                         during the continuation of, an Event of Default, to do anything which the Company is
                                         obligated to do under this Agreement.

 

16.2       Ratification

 

		(a)	The Company ratifies and confirms and
                                         agrees to ratify and confirm whatever any attorney shall do in the exercise or purported
                                         exercise of the power of attorney granted by it in Clause 16.1 (Appointment).

 

		(b)	The Company hereby releases the Security
                                         Trustee and any Receiver in advance from all liability should the Security Trustee or
                                         such Receiver not exercise any of the powers conferred upon the Security Trustee or such
                                         Receiver under the power of attorney created in Clause 16.1 (Appointment).

 

    	 	 18	 

     

    

 

		(c)	The Company hereby waives in advance
                                         any claims or demands against the Security Trustee and any Receiver on account of, or
                                         in connection with any claim demands, actions, suits, proceeding, negotiation or arrangement,
                                         made by the Security Trustee under the powers granted to it under this Clause 16except
                                         as resulting from the Security Trustee’s gross negligence, bad faith or willful
                                         misconduct or material breach of this Agreement or that of any of its Affiliates, directors,
                                         officers, employees, advisors, agents, controlling persons or other representatives (as
                                         determined by a court of competent jurisdiction in a final and non-appealable decision).

 

17.         Application
of Proceeds

 

17.1      
Order of application

 

		(a)	The Security Trustee shall apply the
                                         proceeds of any collection, sale, foreclosure or other enforcement of any Security Asset,
                                         including any Security Asset consisting of cash, as follows:

 

		(i)	first, to the payment
                                         of all reasonable and documented out-of-pocket costs and expenses incurred by the Security
                                         Trustee in connection with such collection, sale, foreclosure or enforcement or otherwise
                                         in connection with this Agreement, any other Note Document or any of the Secured Obligations,
                                         including all court costs and the reasonable and documented out-of-pocket fees and expenses
                                         of its agents and legal counsel, the repayment of all advances made by the Security Trustee
                                         hereunder or under any other Note Document on behalf of the Company and any other reasonable
                                         and documented out-of-pocket costs or expenses incurred in connection with the exercise
                                         of any right or remedy hereunder or under any other Note Document;

 

		(ii)	second, to the payment
                                         in full of the Secured Obligations; and

 

		(iii)	third, to the Company,
                                         its successors or assigns,

 

or, in each
case, as a court of competent jurisdiction may otherwise direct. 

 

		(b)	Upon any sale of the Security Assets
                                         by the Security Trustee (including pursuant to a power of sale granted by statute or
                                         under a judicial proceeding), the receipt of the Security Trustee or of the officer making
                                         the sale of the purchase price thereof shall be a sufficient discharge to the purchaser
                                         or purchasers of the Security Assets so sold and such purchaser or purchasers shall not
                                         be obligated to see to the application of any part of the purchase price paid over to
                                         the Security Trustee or such officer or be answerable in any way for the misapplication
                                         thereof. The Company shall remain liable for any deficiency if the proceeds of any sale
                                         or disposition of the Security Asset are insufficient to pay all Secured Obligations,
                                         including any attorneys’ fees and other expenses incurred by the Security Trustee
                                         to collect such deficiency.

 

		(c)	The order of application referred to
                                         in paragraphs (a) and (b) above shall override any appropriation by the Company.

 

    	 	 19	 

     

    

 

18.         Set
Off

 

If an Event of Default shall have occurred
and be continuing, the Security Trustee is hereby authorized at any time and from time to time, to the fullest extent permitted
by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) or other amounts at any time held and other obligations (in whatever currency) at any time owing by the Security Trustee
to or for the credit or the account of the Company against any of and all the Obligations then due of the Company now or hereafter
existing under the Note Documents, irrespective of whether or not the Security Trustee, the Collateral Agent or the Trustee on
behalf of the Holders shall have made any demand under any Note Document and although such obligations of the Company may be contingent
or unmatured. The Security Trustee agrees to notify the Company and the Trustee promptly after any such setoff and application;
provided that the failure to give or any delay in giving such notice shall not affect the validity of any such setoff and
application. The rights of the Security Trustee under this Section 18 are in addition to other rights and remedies (including
other rights of setoff) that the Security Trustee may have.

 

19.         Expenses
and Indemnities

 

		(a)	The Company shall indemnify the Security
                                         Trustee, the Collateral Agent, the Trustee on behalf of the Holders, the Receiver and
                                         each Related Party of any of the foregoing Persons and permitted successors and assigns
                                         of any of the foregoing Persons, without duplication (each, an “Indemnified
                                         Person”) as provided in Section 7.06(a) of the Indenture.

 

		(b)	The Security Trustee shall be entitled
                                         to reimbursement of its reasonable out-of-pocket expenses incurred hereunder for its
                                         actions in connection herewith as provided in Section 7.06(a) of the Indenture.

 

		(c)	Any Indemnified Person who is not a
                                         party to this Agreement may rely on this Clause 19 and enforce its terms.

 

20.         Changes
to Parties

 

20.1       Transfer
by the Security Trustee

 

The Security Trustee may at any time assign
or otherwise transfer all or any part of its rights under this Agreement to any successor appointed in accordance with the Note
Documents. The Company shall, promptly upon a request from the Security Trustee and to the extent commercially reasonable, enter
into such documents and do all such acts as may be necessary or desirable to effect such an assignment or transfer.

 

20.2       Changes
to the Company

 

The Company may not assign or otherwise transfer
any of its respective rights or obligations under this Agreement without the prior written consent of the Security Trustee (acting
in accordance with a Letter of Instruction).

 

21.         ENTIRE
AGREEMENT; Waivers and amendments

 

This Agreement contains the entire agreement
of the parties with respect to the subject matter hereof and supersedes any and all previous agreements and understandings, oral
or written, relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be waived, amended, modified
or terminated except pursuant to an agreement or agreements in writing entered into by the Company and the Security Trustee with
respect to such waiver, amendment, modification or termination.

 

    	 	 20	 

     

    

 

22.         Miscellaneous

 

22.1       Further
advances

 

This Agreement secures advances
and financial accommodation already made under the Note Documents and further advances and financial accommodation to be made
under the Note Documents.

 

22.2      Security
Trustee’s and Receiver’s liability

 

Neither the Security Trustee nor any Receiver
shall (either by reason of taking possession of the Security Assets or for any other reason) be liable to the Company or any other
Person for any costs, losses, liabilities or expenses relating to the realization of any Security Assets or from any act, default,
omission or misconduct of the Security Trustee or any Receiver or their respective officers, employees or agents in relation to
the Security Assets or in connection with the Note Documents except as resulting from the Security Trustee’s gross negligence,
bad faith or willful misconduct or material breach of this Agreement or that of any of its Affiliates, directors, officers, employees,
advisors, agents, controlling persons or other representatives (as determined by a court of competent jurisdiction in a final
and non-appealable decision).

 

22.3       Determinations

 

The Company acknowledges
that any certification or determination by the Security Trustee or any Receiver, or any books, records and accounts of the Security
Trustee or the Receiver, shall, in the absence of manifest error, conclusive evidence of the matters to which it relates. Copies
of such certificates, determinations, books, records or accounts shall serve as admissible evidence to prove the authenticity
of their content.

 

22.4       Relationship
with other documents

 

Nothing
contained in this Agreement shall operate to prejudice or affect any obligations of the Company towards the Security Trustee,
the Collateral Agent or the Trustee on behalf of the Holders conferred by documentation of any kind that has been or will be signed
by the Company towards the Security Trustee, the Collateral Agent or the Trustee on behalf of the Holders
or the rights of the Security Trustee, the Collateral Agent or the Trustee on behalf of the Holders under such documentation.

 

22.5       Translation

 

A convenience translation
of this Agreement into Hebrew shall be prepared by the Company as required by Requirements of Law or reasonably requested by the
Security Trustee for the purpose of registration and perfection of this Agreement with the Israeli Registrar of Companies. The
parties acknowledge that this English language Agreement shall prevail in the case of any inconsistency and that the Hebrew translation
is for convenience only.

 

23.         Partial
Invalidity

 

If any provision of this Agreement is or becomes
invalid, illegal or unenforceable in any jurisdiction, that shall not affect the legality, validity or enforceability of the remaining
provisions in such jurisdiction or of such provision in any other jurisdiction.

 

    	 	 21	 

     

    

 

24.         survival

 

The
warranties, representations and covenants of the Company contained in or made pursuant to this Agreement shall:

 

		(a)	survive the execution and delivery
                                         of this Agreement and the other Note Documents; and

 

		(b)	be deemed to be material and to have
                                         been relied upon by the Security Trustee, the Collateral Agent and the Trustee on behalf
                                         of the Holders, regardless of any investigation of the subject matter thereof made by
                                         or on behalf of the Security Trustee, the Collateral Agent or the Trustee on behalf of
                                         the Holders, as applicable.

 

25.         Notices

 

The provisions of Section
15.02 of the Indenture shall apply to this Agreement as if set out expressly in full in this Clause 25 (as appropriate).

 

26.         Counterparts

 

This Agreement may be executed in any number
of counterparts (and by different parties hereto on different counterparts), each of which when so executed shall constitute an
original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature
page of this Agreement by facsimile or other electronic imaging (i.e. “pdf” or “tif”) shall be effective
as delivery of a manually executed counterpart of this Agreement.

 

27.         Governing
Law and Jurisdiction

 

This Agreement is governed by and shall be
construed in accordance with the laws of the State of Israel and each of the parties hereto hereby irrevocably submits to the
exclusive jurisdiction of the courts of Tel-Aviv-Jaffa in relation to all matters arising out of or in connection with this Agreement.

 

[Signature page follows]

 

    	 	 22	 

     

    

 

SIGNATORIES
TO THE SECURITY AGREEMENT

 

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

 

SECURITY TRUSTEE 

 

	ALTSHULER SHAHAM TRUSTS LTD.

    as Security Trustee	 
	 	 
	BY:	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

THE COMPANY

 

	PROTALIX BIOTHERAPEUTICS, INC.

    as the Company	 
	 	 
	by:	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

    	 	 23

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