Document:

<PAGE>

                                                                    Exhibit 10.6
EXECUTION COPY

                            SHARE PURCHASE AGREEMENT

This Share Purchase Agreement (the "AGREEMENT") is made and entered into as of
this 6th day of April, 2000, by and among LIOR SALANSKY of 19 Snir St. Yokne-am
Elit 20692, Israel ("SALANSKY"), OSCAR GRUSS & SON INCORPORATED, with offices at
74 Broad St., New York, NY 10004-2247, YARON AMIR of 73 Kalaniot St., Givat
Avni, ILAN MELAMED, and the individuals listed in Schedule 1.3 attached hereto
(collectively the "PURCHASERS", and each of them individually a "PURCHASER").

IN CONSIDERATION of the premises and the representations, warranties, covenants
and conditions set forth hereinafter, and intending to be legally bound, the
parties hereby agree as follows:

                                   ARTICLE I
1.  PURCHASE AND SALE OF SHARES

    1.1  Purchase and Sale of Shares. At the Closing (as such term and other
         terms are defined in Article 1.3 below), Salansky will sell to the
         Purchasers 23,412 Voting Ordinary Shares of the Mind CTI Ltd.
         ("COMPANY"), par value NIS 0.01 per share, free and clear of any liens,
         charges, pledges, encumbrances or third party interests of any kind
         (the "PURCHASED SHARES"), at a price of $104.625 per share, for a total
         purchase price for the Purchased Shares of $2,449,481. The Purchased
         Shares shall have the rights, terms, preferences and privileges set
         forth in the Company's Amended Articles of Association as recently
         adopted.

    1.2. Adjustment. The terms of Article 21.4 of the Company's Amended Articles
         of Association (the "AMENDED ARTICLES") shall (inversely) apply to the
         Purchased Shares, so that if the Company consummates a QIPO or
         Corporate Sale (as such terms are defined in the Amended Articles)
         within twelve (12) months of the date hereof, at a specified valuation,
         the price per share of the Purchased Shares will be retrospectively
         adjusted (in a manner exactly inverse to the adjustment of the
         Applicable Conversion Value under Article 21.4, hereinafter: the
         "RETROSPECTIVE PRICE PER SHARE") so that, pursuant to the computation
         set forth below, as many as 29,265 Ordinary Shares shall be deemed to
         have been sold to the Purchasers by Salansky under this Agreement. For
         the purpose of implementing the arrangement contemplated herein, the
         parties hereto shall enter into an escrow agreement concurrently with
         the execution of this Agreement (the "ESCROW AGREEMENT"), by which an
         aggregate number of 5,853 Ordinary Shares (in addition to
<PAGE>

         the Purchased Shares) will be bestowed by Salansky with the trustee,
         designated under the Escrow Agreement (the "TRUSTEE"), and transferred
         to the Purchasers for no additional consideration in a number equal to
         the product of (i) 5,853 and (ii) a fraction, the numerator of which is
         the difference between $104.625 and the Retrospective Price Per Share
         after giving effect to such adjustment upon a QIPO or a Corporate Sale
         in accordance with (and inverse to) the computation set forth in
         Article 21.4 of the Amended Articles (down to a minimal Retrospective
         Price Per Share of $83.700), and the denominator of which is the
         difference between $104.625 and $83.700.

    1.3. Closing. Subject to the satisfaction or waiver of the conditions set
         forth in Articles 5 and 6 hereof, the purchase of the Purchased Shares
         shall be made at a closing (the "CLOSING") to be held at the offices of
         Ravillan, Volovelsky, Dinstein, Sneh & Co. at 76 Rothschild Blvd.,
         Mozes House, Tel-Aviv, Israel, or by facsimile without requiring the
         physical presence of the parties, at 10:00 A.M. on April 6th, 2000, or,
         if later, a date specified by the Purchasers (the "CLOSING DATE").
         Payment for the Purchased Shares shall be by wire transfer payable in
         immediately available funds within 72 hours of the Closing (either in
         U.S. Dollars or their NIS equivalent, computed according to the
         representative exchange rate promulgated by the Bank of Israel
         immediately prior to such transfer, and made to either a US or Israeli
         bank account, at each Purchaser's discretion, and as further
         coordinated with Salansky). Each Purchaser shall pay that amount for
         the Purchased Shares being acquired by it at the Closing to Salansky as
         described on Schedule 1.3 hereof. At the Closing, Salansky will deliver
         to the Purchasers duly executed transfer deeds representing the
         Purchased Shares purchased by each Purchaser, issued in such names as
         may be requested by each Purchaser together with share certificates
         executed in blank, such that the Purchasers may present such
         certificates to the Company for issuance of the shares represented by
         such certificates in the names of the Purchasers as may be requested by
         the Purchasers.

    1.4. Ordinary Course of Business. Between the date of execution and delivery
         of this Agreement and the Closing Date, Salansky undertakes to make his
         best effort to cause the Company to comply with all the obligations set
         forth in Article 1.6 of the Share Purchase Agreement between the
         Company, Salansky, other principal shareholders of the Company and a
         group of investors dated March 30, 2000 (the "SUMMIT INVESTMENT
         AGREEMENT").
<PAGE>

                                   ARTICLE II

2.  REPRESENTATIONS AND WARRANTIES OF SALANSKY

    2.1. Correctness of Previous Representations. In order to induce the
         Purchasers to purchase the Purchased Shares, Salansky represents and
         warrants that, as a principal shareholder of the Company, he has no
         reason to believe that any of the representations and warranties made
         by the Company under Article 2 of the Summit Investment Agreement (and
         any representation or warranty made by any of the Principal
         Shareholders, as defined therein) (i) has been rendered untrue,
         incorrect or incomplete in any respects since the closing of the
         transaction contemplated therein or (ii) shall not remain true, correct
         and complete in all material respects as of the Closing; except in each
         case for those representations and warranties that address matters only
         as of a particular date or only with respect to a specific period of
         time.

    2.2. Authorization. Salansky has full legal capacity and unrestricted power
         to execute and deliver this Agreement, and any other agreements or
         instruments executed by him in connection herewith or therewith and to
         consummate the transactions contemplated herein or therein. The sale of
         the Purchased Shares does not require any further action by Salansky or
         the Company and is not and will not be subject to any veto right,
         preemptive right, right of first refusal, tag-along right or the like.
         This Agreement and any other agreements and instruments executed by
         Salansky in connection herewith or therewith, will each be a valid and
         binding obligation of Salansky, enforceable in accordance with its
         terms, except as enforcement thereof may be limited by bankruptcy or
         other similar laws relating to or affecting enforcement of creditors'
         rights generally and except as enforcement thereof is subject to
         general principles of equity.

                                  ARTICLE III

3.  PURCHASERS' REPRESENTATIONS

     Each Purchaser hereby represents and warrants to Salansky as follows:

    3.1. This Agreement and any other agreements and instruments executed by
         such Purchaser in connection herewith or therewith will each be a
         legal, valid and binding obligation of such Purchaser, enforceable
         against such Purchaser in accordance with its terms;
<PAGE>

    3.2. Oscar Gruss & Son Incorporated ("OSCAR GRUSS") represents that it is
         acquiring the Purchased Shares solely for its own account as an
         investment or on behalf of certain individuals and entities. Each of
         the other Purchasers represents that he is purchasing the Purchased
         Shares for his own account as an investment, and does not intend to
         distribute such shares to any third party.

                                   ARTICLE IV

4.  CONDITIONS OF PURCHASERS' OBLIGATIONS

    4.1. Effect of Conditions. The obligations of the Purchaser to purchase and
         pay for the Purchased Shares at the Closing shall be subject at its
         election to the satisfaction of each of the conditions stated in the
         following Sections of this Article.

    4.2. Representations and Warranties. The representations and warranties
         contained in this Agreement shall be true and correct in all material
         respects on the Closing Date with the same effect as though made on and
         as of that date.

    4.3. Performance. All parties to the Summit Investment Agreement shall have
         performed and complied in all material respects with all of the
         agreements, covenants and conditions contained in such agreement and
         the related agreements required to be performed or complied with by
         them at or prior to such agreement's closing date.

    4.4. No Material Adverse Changes. The business, properties, assets or
         condition (financial or otherwise) of the Company shall not have been
         materially adversely affected since the date of this Agreement, whether
         by fire, casualty, act of God or otherwise, and there shall have been
         no other changes in the business, properties, assets, condition
         (financial or otherwise), management or prospects of the Company or the
         Mind Subsidiary that would have a material adverse effect.

    4.5. Consents and Waivers. Salansky shall have obtained all consents or
         waivers (if any) necessary to execute this Agreement and the other
         agreements and documents contemplated herein, to issue the Purchased
         Shares, and to carry out the transactions contemplated hereby and
         thereby. All corporate and other action and governmental filings
         necessary to effectuate the terms of this Agreement and other
         agreements and instruments executed and delivered by Salansky in
         connection herewith shall have been made or taken, including, without
         limitation:
<PAGE>

    4.5.1. Validly executed certificates representing the Purchased Shares,
           issued in the name of the Purchasers in accordance with the
           allocation set forth in Schedule 1.3.

    4.5.2. Validly executed transfer statements and transfer deeds of the
           Purchased Shares in the name of the Purchasers, in accordance with
           the allocation set forth in Schedule 1.3.

                                   ARTICLE V

5.  CONDITIONS OF SALANSKY'S OBLIGATIONS

    5.1. Effect of Conditions. The obligation of Salansky to sell the Purchased
         Shares shall be subject at his election to the satisfaction of each of
         the conditions stated in the following Sections of this Article.

    5.2. Representations and Warranties. The representations and warranties of
         the Purchasers contained in this Agreement shall be true and correct in
         all material respects on the Closing Date with the same effect as
         though made on and as of that date

    5.3. Performance. The parties that had purchased shares under the Summit
         Investment Agreement shall have performed and complied in all material
         respects with all of the agreements, covenants and conditions contained
         in such agreement required to be performed or complied with by them at
         or prior to the closing thereof.

                                   ARTICLE VI

    INDEMNIFICATION

    6.1. Survival of Representations and Warranties. The representations and
         warranties contained in this Agreement shall survive the Closing until
         the earlier of (i) ninety (90) days after receipt by the Purchasers of
         audited financial statements for the Company for its year ending
         December 31, 2001, or (ii) the consummation of an initial public
         offering of the securities of the Company pursuant to a registration
         statement filed under the Securities Act of 1933, as amended.

    6.2. Indemnification of Purchasers. Salansky hereby agrees to indemnify and
         hold the Purchasers and their respective directors, officers,
         employees, agents, successors and assigns (collectively, the "PURCHASER
         INDEMNIFIED PARTIES") harmless from and against (i) any and all losses,
         liabilities, obligations and damages, including any interest thereon
         (collectively, "LOSSES") based upon, attributable to or resulting from
         any inaccuracy in or breach of any representation or
<PAGE>

         warranty of Salansky set forth in Articles 2 hereof, or any
         representation or warranty contained in any other agreement or
         certificate delivered by or on behalf of the Salansky pursuant to this
         Agreement, to be true and correct; (ii) any and all Losses based upon,
         attributable to or resulting from the breach of the covenant contained
         in Section 1.4; and (iii) any and all costs, penalties and expenses
         (including attorneys' and other professionals' fees and disbursements),
         including any interest thereon (collectively, "EXPENSES"), incident to
         any Losses, with respect to which indemnification is provided under
         clauses (i) and (ii) above. .

    6.3. Indemnification of Salansky. The Purchasers hereby agree that each
         Purchaser shall indemnify and hold Salansky harmless from and against
         (i) any and all Losses based upon, attributable to or resulting from
         any inaccuracy or breach by such Purchaser of any representation or
         warranty of such Purchaser set forth in Article 3 hereof, or any
         representation or warranty contained in any other agreement or
         certificate delivered by or on behalf of such Purchaser pursuant to
         this Agreement, to be true and correct; and (ii) any and all Expenses
         incident to any Losses for which indemnification is sought hereunder.

    6.4. Indemnification Procedure. The indemnification procedure in the even
         that any legal proceedings shall be instituted or that any claim or
         demand shall be asserted by any person in respect of which payment may
         be sought under Section 6.2 or 6.3 hereof shall be identical to the
         procedure set forth in Article 9.4 of the Summit Investment Agreement,
         hereby incorporated by reference with such changes in the context as
         are necessary to substitute the Company and the Principal Shareholders
         by Salansky and the Purchasers thereunder by the Purchasers hereunder.

    6.5. Limitations. Notwithstanding the foregoing provisions, no amounts shall
         be payable as a result of a claim under Section 6.2 or 6.3 in respect
         of a misrepresentation or a breach of a warranty unless or until the
         indemnified party shall have suffered, incurred, sustained, or become
         subject to Losses and Expenses in excess of $500,000 in the aggregate
         (whereas, for the purpose of examining whether the total Loss of any
         indemnified party had exceeded $500,000, any Losses and Expenses
         incurred by any indemnified party under the Summit Investment Agreement
         shall be added to Losses and Expenses incurred under this Agreement),
         in which case the indemnified party shall be entitled to seek indemnity
         for all Losses and Expenses incurred irrespective of amount.

                                  ARTICLE VII
7.  MISCELLANEOUS
<PAGE>

    7.1. Parties in Interest. Except as otherwise set forth herein, all
         covenants, agreements, representations, warranties and undertakings
         contained in this Agreement shall be binding on and shall inure to the
         benefit of the parties hereto and the respective successors and assigns
         of the parties hereto.

    7.2. Amendments and Waivers. Amendments or additions to this Agreement may
         be made, and compliance with any term, covenant, agreement, condition
         or provision set forth herein may be omitted or waived (either
         generally or in a particular instance and either retroactively or
         prospectively) upon the written consent of the Company and the
         Purchasers holding a majority of the Purchased Shares. Prompt notice of
         any such amendment or waiver shall be given to any party who did not
         consent thereto. This Agreement (including the Schedules and Exhibits
         annexed hereto, which are an integral part of this Agreement), and the
         other agreements executed in connection herewith together constitute
         the full and complete agreement of the parties with respect to the
         subject matter hereof and thereof.

    7.3. Notices. All notices, requests, consents, reports and demands shall be
         in writing and shall be hand delivered, sent by facsimile or other
         electronic medium, or mailed (postage prepaid) to Salansky and the
         Purchasers at the address set forth below or to such other address as
         may be furnished in writing to the other parties hereto:

          Salansky:         Lior Salansky
                            19 Snir St.
                            Yokne-am Elit 20692, Israel

          The Purchasers:   The address set forth in the preamble above;

          With a copy to:   Ravillan, Volovelsky, Dinstein, Sneh & Co.
                            76 Rothschild Blvd. Mozes House, 6th Floor
                            Tel-Aviv, 65785 Israel
                            Facsimile: (972)-(3)-5664630
                            Attn: Dr. Eddo Dinstein, Attorney-at-Law

    7.4. Expenses.  Each party shall bear the expenses incurred thereby in
         connection with this Agreement.

    7.5. Counterparts. This Agreement and any exhibit hereto may be executed in
         multiple counterparts, each of which shall constitute an original but
         all of which shall constitute but one and the same instrument. One or
         more counterparts of this Agreement or any exhibit hereto may be
         delivered via facsimile, with the intention that they shall have the
         same effect as an original counterpart hereof.

    7.6. Effect of Headings.  The article and section headings herein are for
         convenience only and shall not affect the construction hereof.
<PAGE>

    7.7. Governing Law. This Agreement shall be deemed a contract made under the
         laws of the State of Israel and together with the rights and
         obligations of the parties hereunder, shall be construed under and
         governed by the laws of such State.

    7.8. Dollar Amounts. All dollar amounts referenced, incorporated, or set
forth in this Agreement shall refer to and mean such amounts as expressed in
United States Dollars, payable in their NIS equivalent according to the
representative exchange rate promulgated by the Bank of Israel immediately prior
to the applicable payment.

                 remainder of the page intentionally left blank
<PAGE>

                                  SCHEDULE 1.3
                                  ------------
                                 (Page 1 of 2)
              of the Share Purchase Agreement dated April 6th 2000

                      Signature Page and Allocation Table
                      -----------------------------------

<TABLE>
<CAPTION>
Name of Purchaser         Dollar Amount        Number of Shares           Signature
--------------------  ---------------------  ---------------------  ---------------------
-----------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------
<S>                   <C>                    <C>                    <C>
Rochelle Sivan                  $ 20,088.00                    192  /s/ Rochelle Sivan
------------------------------------------------------------------  --------------------

Gabi Bar Haim                   $ 20,088.00                    192  /s/ Gabi Bar Haim
------------------------------------------------------------------  --------------------

Zadok Eyal                      $ 30,132.00                    288  /s/ Zadok Eyal
------------------------------------------------------------------  --------------------

Ami Arel                        $ 49,801.50                    476  /s/ Ami Arel
------------------------------------------------------------------  --------------------

Gal Miara                       $ 49,801.50                    476  /s/ Gal Miara
------------------------------------------------------------------  --------------------

Sagee Aran                      $ 49,801.50                    476  /s/ Sagee Aran
------------------------------------------------------------------  --------------------

Shako Eli                       $ 49,801.50                    476  /s/ Shako Eli
------------------------------------------------------------------  --------------------

Eyal Oren                       $ 49,801.50                    476  /s/ Eyal Oren
------------------------------------------------------------------  --------------------

Sharli Bencherit                $ 79,933.50                    764  /s/ Sharli Bencherit
------------------------------------------------------------------  --------------------

Yuval Sarig                     $100,021.50                    956  /s/ Yuval Sarig
------------------------------------------------------------------  --------------------

Arie Ganot                      $100,021.50                    956  /s/ Arie Ganot
------------------------------------------------------------------  --------------------

Tudor Group Inc.                $100,021.50                    956  /s/ Eitan Lombard
----------------------------------------------------------------------------------------
</TABLE>
<PAGE>

                                  SCHEDULE 1.3
                                  ------------
                                 (Page 2 of 2)
              of the Share Purchase Agreement dated April 6th 2000

                      Signature Page and Allocation Table
                      -----------------------------------

<TABLE>
<S>                   <C>                    <C>                    <C>
Yossi Azmon                   $  100,021.50                    956  /s/ Yossi Azmon
------------------------------------------------------------------  ------------------

David Shemla                  $  100,021.50                    956  /s/ David Shemla
------------------------------------------------------------------  ------------------

Gadi Lidror                   $  100,021.50                    956  /s/ Gadi Lidror
------------------------------------------------------------------  ------------------

Ilan Melamed                  $  149,823.00                  1,432  /s/ Ilan Melamed
------------------------------------------------------------------  ------------------

Yaron Amir                    $  200,043.00                  1,912  /s/ Yaron Amir
------------------------------------------------------------------  ------------------

Oscar Gruss & Son             $1,100,236.50                 10,516
 Incorporated                                                       /s/ Michael Shaoul
------------------------------------------------------------------  ------------------

Total                         $2,449,481.00                 23,412
-----------------------------------------------------------------------------------------
</TABLE><PAGE>

                                                                    Exhibit 10.7

                                MIND C.T.I. LTD.
                             2000 SHARE OPTION PLAN

1  NAME

     This Plan, as amended from time to time, shall be known as the Mind 2000
     Share Option Plan (the "OPTION PLAN").
     This plan is consequential to the Mind 1998 Stock Option Plan (the "1998
     OPTION PLAN").

2  PURPOSE OF THE OPTION PLAN

     The Option Plan is intended as an incentive to retain, in the employ or in
     the service of Mind C.T.I. Ltd. (the "COMPANY") and its subsidiaries,
     persons of training, experience, and ability, to attract new employees and
     key officers (including non-Israeli employees and key officers), whose
     services are considered valuable, to encourage the sense of proprietorship
     of such persons, and to stimulate the active interest of such persons in
     the development and financial success of the Company by providing them with
     opportunities to purchase shares in the Company, pursuant to the Option
     Plan approved by the board of directors of the Company (the "BOARD")  The
     Option Plan is also intended to fulfill certain previous obligations of the
     Company to certain employees, directors and key officers.

3  ADMINISTRATION OF THE OPTION PLAN

     The Board or a share option committee appointed and maintained by the Board
     for such purpose (the "COMMITTEE") shall have the power to administer the
     Option Plan. Notwithstanding the above, the Board shall automatically have
     a residual authority if no Committee shall be constituted or if such
     Committee shall cease to operate for any reason whatsoever.

     The Committee shall consist of such number of members (not less than two
     (2) in number) as may be fixed by the Board. The Committee shall select one
     of its members as its chairman (the "CHAIRMAN") and shall hold its meetings
     at such times and places as the Chairman shall determine. The Committee
     shall keep records of its meetings and shall make such rules and
     regulations for the conduct of its business as it shall deem advisable.
     The Committee shall have full power and authority (i) to designate
     participants; (ii) to determine the terms and provisions of respective
     Option agreements (which need not be identical) including, but not limited
     to, the number of shares in the Company to be covered by each Option,
     provisions concerning the time or times when and the extent to which the
     Options may be exercised and the nature and duration of restrictions as to
     transferability or restrictions constituting substantial risk of
     forfeiture; (iii) to accelerate the right of an Optionee to exercise, in
     whole or in part, any previously granted Option; (iv) to interpret the
     provisions and supervise the administration of the Option Plan; and - (v)
     to determine any other matter which is necessary or desirable for, or
     incidental to administration of the Option Plan.
     All decisions and selections made by the Board or the Committee pursuant to
     the provisions of the Option Plan shall be made by a majority of its
     members except that no member of the Board or the Committee shall vote on,
     or be counted for quorum purposes, with respect to any proposed action of
     the Board or the Committee relating to any Option to be granted to that
     member. Any decision reduced to writing and signed by a majority of the
     members who are authorized to make such decision shall be fully effective
     as if it had been made by a majority at a meeting duly held.
     The interpretation and construction by the Committee of any provision of
     the Option Plan or of any Option thereunder shall be final and conclusive
     unless otherwise determined by the Board.
     Subject to the Company decision, each member of the Board or the Committee
     shall be indemnified and held harmless by the Company against any cost or
     expense (including counsel fees) reasonably

MIND CTI Ltd. Option Plan                                               1
<PAGE>

     incurred by him, or any liability (including any sum paid in settlement of
     a claim with the approval of the Company) arising out of any act or
     omission to act in connection with the Option Plan unless arising out of
     such member's own fraud or bad faith, to the extent permitted by applicable
     law. Such indemnification shall be in addition to any rights of
     indemnification the member may have as a director or otherwise under the
     Company's Articles of Association, any agreement, any vote of shareholders
     or disinterested directors, insurance policy or otherwise.

4  DESIGNATION OF PARTICIPANTS

     The persons eligible for participation in the Option Plan as recipients of
     Options shall include any employees, directors or key officers of the
     Company or of any subsidiary of the Company. The grant of an Option
     hereunder shall neither entitle the recipient thereof to participate nor
     disqualify him from participating in, any other grant of Options pursuant
     to this Option Plan or any other option or stock plan of the Company or any
     of its affiliates.
     Anything in the Option Plan to the contrary notwithstanding, all grants of
     Options to directors and office holders ("Nosei Misra" - as such term is
     defined in the Companies Act, 1999 - the "COMPANIES ACT") shall be
     authorized and implemented only in accordance with the provisions of the
     Companies Act, as in effect from time to time.

5  SHARES RESERVED FOR THE OPTION PLAN

     Subject to adjustments as set forth in Section 7 below, a total of 55,400
     (fifty five thousands and four hundreds) Ordinary Shares, of NIS 0.01 par
     value (the "SHARES") shall be subject to the Option Plan and the 1998
     Option Plan. The Shares subject to the Option Plan are hereby reserved for
     such purpose in the authorized share capital of the Company and may only be
     issued in accordance with the terms hereof. Any of such Shares which may
     remain unissued and which are not subject to outstanding Options at the
     termination of the Option Plan shall cease to be reserved for the purpose
     of the Option Plan, but until termination of the Option Plan the Company
     shall at all times reserve a sufficient number of Shares to meet the
     requirements of the Option Plan. Should any Option for any reason expire or
     be canceled prior to its exercise or relinquishment in full, the Shares
     therefore subject to such Option may again be subjected to an Option under
     the Option Plan.

6  OPTION PRICE

   6.1  The purchase price of each Share subject to an Option or any portion
        thereof shall be determined by the Committee in its sole and absolute
        discretion in accordance with applicable law, subject to any guidelines
        as may be determined by the Board from time to time. As of the date of
        adoption of the Option Plan, the Board has instructed the Committee to
        determine the purchase price of each Share, at a price which is not less
        then the price per share, according to the most recent evaluation of the
        Company in any investment or other capital transaction.

   6.2  The Option price shall be payable upon the exercise of the Option in a
        form satisfactory to the Committee , including without limitation, by
        cash or cheque. The Committee shall have the authority to postpone the
        date of payment on such terms as it may determine.

7  ADJUSTMENTS
     Upon the occurrence of any of the following described events, Optionee's
     rights to purchase Shares under the Option Plan shall be adjusted as
     hereafter provided:

MIND CTI Ltd. Option Plan                                               2
<PAGE>

   7.1  If the outstanding shares of the Company shall at anytime be changed or
        exchanged by declaration of a stock dividend, stock split, combination
        or exchange of shares, recapitalization, or any other like event by or
        of the Company, and as often as the same shall occur, then the number,
        class and kind of Shares subject to this Option Plan or subject to any
        Options therefore granted, and the Option prices, shall be appropriately
        and equitably adjusted so as to maintain the proportionate number of
        Shares without changing the aggregate Option price, provided, however,
        that no adjustment shall be made by reason of the distribution of
        subscription rights on outstanding stock or by reason of conversion of
        any Management Shares of the Company into Ordinary Shares (regardless of
        the ratio of such conversion). Upon occurrence of any of the foregoing,
        the class and aggregate number of Shares issuable pursuant to the Option
        Plan (as set forth in paragraph 6 hereof), in respect of which Options
        have not yet been exercised, shall be appropriately adjusted, all as
        will be determined by the Board who's determination shall be final.

   7.2  Anything herein to the contrary notwithstanding, if prior to the
        completion of an initial public offering of the Company's securities
        ("IPO"), all or substantially all of the shares of the Company are to be
        sold, or upon a merger or reorganization or the like, the shares of the
        Company, or any class thereof, are to be exchanged for securities of
        another Company, then in such event, each Optionee shall be obliged to
        sell or exchange, as the case may be, the shares such Optionee purchased
        under the Option Plan, in accordance with the instructions then issued
        by the Board whose determination shall be final. Upon the occurrence of
        any such transactions, all unexercized Options shall be immediately and
        completely terminated.

8  TERM AND EXERCISE OF OPTIONS

   8.1  Options shall be exercised by the Optionee by giving written notice to
        the Company, in such form and method as may be determined by the
        Company, which exercise shall be effective upon receipt of such notice
        by the Company at its principal office. The notice shall specify the
        number of Shares with respect to which the Option is being exercised.

   8.2  Each Option granted under this Option Plan shall be exercisable only
        following the vesting dates and for the number of Shares as shall be
        provided in Exhibit B to the Option agreement (the "Expiration Date").
        However no Option shall be exercisable after the Expiration Date, as
        defined for each Optionee in his Option agreement.

   8.3  Options granted under the Option Plan shall not be transferable by
        Optionees other than by will or laws of descent and distribution, and
        during an Optionee's lifetime shall be exercisable only by that
        Optionee.

   8.4  The Options may be exercised by the Optionee in whole at any time or in
        part from time to time, to the extent that the Options become vested,
        prior to the Expiration Date, and provided that, subject to the
        provisions of Section 8.6 below, the Optionee is an employee, director
        or key officer of the Company or any of its subsidiaries, at all times
        during the period beginning with the granting of the Option and ending
        upon the date of exercise of the relevant Options.

MIND CTI Ltd. Option Plan                                               3
<PAGE>

   8.5  Subject to the provisions of Section 8.6 below, in the event of
        termination of the Optionee's employment or relationship with the
        Company or any of its subsidiaries, all Options granted to him, which
        have not yet been exercised, will immediately expire. A notice of
        termination of employment or relationship by either the Company or the
        Optionee shall be deemed to constitute termination of employment or
        relationship, as the case may be.

   8.6  Notwithstanding anything to the contrary hereinabove, an Option may be
        exercised after the date of termination of Optionee's employment or
        relationship with the Company or any subsidiary of the Company during an
        additional period of time beyond the date of such termination, but only
        with respect to the number of Options vested at the time of such
        termination, according to the vesting periods of the Options, set forth
        in Section 9 below, if: (i) termination is without Cause (as defined
        below), for a period of six months from the termination of Employment,
        (ii) termination is the result of death or disability of the Optionee,
        in which event any Options still in force and unexpired may be exercised
        within a period of one year from the date of termination, but only with
        respect to the number of Options already vested at the time of such
        termination according to the vesting periods of the Options. The term
        "Cause" shall mean any action, omission or state of affairs related to
        the Optionee which the Board decides, in its sole discretion, is against
        the interests of the Company.

   8.7  The holders of Options shall not have any of the rights or privileges of
        shareholders of the Company in respect of any Shares purchasable upon
        the exercise of any part of an Option unless and until, following
        exercise , registration of the Optionee as holder of such Shares in the
        Company's register of members.

   8.8  Any form of Option agreement authorized by the Option Plan may contain
        such other provisions as the Committee may, from time to time, deem
        advisable.

9  VESTING OF OPTIONS

     Notwithstanding anything to the contrary, any Option may be exercised only
     to the extent that such Option was vested. Each option granted hereunder
     shall be vested, in whole or in part, as determined by the Committee in its
     sole and absolute discretion, provided that the Optionee is an employee,
     director or key officer of the Company or any of its subsidiaries, at all
     times during the period beginning with the granting of the Option and
     ending upon the date of vesting of any portion of the Option.

10  DIVIDENDS

     With respect to all Shares (in contrary to unexercised Options) issued upon
     the exercise of Options purchased by the Optionee , the Optionee shall be
     entitled to receive dividends in accordance with the quantity of such
     Shares, and subject to any applicable taxation on distribution of
     dividends.

11  ASSIGNABILITY AND SALE OF OPTIONS

     No Option, purchasable hereunder, whether fully paid or not, shall be
     assignable, transferable or given as collateral or any right with respect
     to them given to any third party whatsoever, and during the lifetime of the
     Optionee each and all of such Optionee's rights to purchase Shares
     hereunder shall be exercisable only by the Optionee.

MIND CTI Ltd. Option Plan                                               4
<PAGE>

12  TERM OF THE OPTION PLAN
     The Option Plan shall be effective as of the day it was adopted by the
     Board and shall terminate at the end of 36 (thirty six) months from such
     day of adoption.

13   AMENDMENTS OR TERMINATION

     The Board may, at any time and from time to time, amend, alter or
     discontinue the Option Plan, except that no amendment or alteration shall
     be made which would impair the rights of the holder of any Option therefore
     granted, without his consent.

14  GOVERNMENT REGULATIONS

     The Option Plan, and the granting and exercise of Options hereunder, and
     the obligation of the Company to sell and deliver Shares under such
     Options, shall be subject to all applicable laws, rules, and regulations,
     whether of the State of Israel or of the United States or any other State
     having jurisdiction over the Company and the Optionee, including the
     registration of the Shares under the United States Securities Act of 1933,
     and to such approvals by any governmental agencies or national securities
     exchanges as may be required.

15  CONTINUANCE OF EMPLOYMENT

     Neither the Option Plan nor the Option agreement with the Optionee shall
     impose any obligation on the Company or a subsidiary thereof, to continue
     any Optionee in its employ or service, and nothing in the Option Plan or in
     any Option granted pursuant thereto shall confer upon any Optionee any
     right to continue in the employ or service of the Company or a subsidiary
     thereof or restrict the right of the Company or a subsidiary thereof to
     terminate such employment at any time.

16  GOVERNING LAW AND JURISDICTION

     This Option Plan shall be governed by and construed and enforced in
     accordance with the laws of the State of Israel applicable to contracts
     made and to be performed therein, without giving effect to the principles
     of conflict of laws. The competent courts of Tel-Aviv, Israel shall have
     sole jurisdiction in any matters pertaining to this Option Plan.

17  ARBITRATION

     Any dispute in relation with this Option Plan and the exercise of rights
     thereunder, shall be brought to arbitration of the legal counsel to the
     Company (the "ARBITRATOR"), who shall decide on such dispute in accordance
     with the provisions of the Arbitration Law - 1968 and its supplement. The
     decision of the Arbitrator shall be final and shall bind the Company and
     the Optionee.

18  TAX CONSEQUENCES

     Any tax consequences arising from the grant or exercise of any Option, from
     the payment for Shares covered thereby or from any other event or act (of
     the Company or the Optionee), hereunder, shall be borne solely by the
     Optionee. The Company shall withhold taxes according to the requirements
     under the applicable laws, rules, and regulations, including withholding
     taxes at source. Furthermore, the Optionee shall agree to indemnify the
     Company and hold them harmless against and from any and all liability for
     any such tax or interest or penalty thereon, including without limitation,
     liabilities relating to the necessity to withhold, or to have withheld, any
     such tax from any payment made to the Optionee.

     The Committee shall not be required to release any Share certificate to an
     Optionee until all required payments have been fully made.

19  NON-EXCLUSIVITY OF THE OPTION  PLAN

     The adoption of the Option Plan by the Board shall not be construed as
     amending, modifying or

MIND CTI Ltd. Option Plan                                               5
<PAGE>

     rescinding any previously approved incentive arrangements or as creating
     any limitations on the power of the Board to adopt such other incentive
     arrangements as it may deem desirable, including, without limitation, the
     granting of stock Options otherwise than under the Option Plan, and such
     arrangements may be either applicable generally or only in specific cases.
     For the avoidance of doubt, prior grants of options to employees of the
     Company under their employment agreements, and not in the framework of any
     previous option plan, shall not be deemed an approved incentive arrangement
     for the purpose of this Section.

20  MULTIPLE AGREEMENTS

     The terms of each Option may differ from other Options granted under the
     Option Plan at the same time, or at any other time. The Committee may also
     grant more than one Option to a given Optionee during the term of the
     Option Plan, either in addition to, or in substitution for, one or more
     Options previously granted to that Optionee.

MIND CTI Ltd. Option Plan                                               6

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