Document:

Exhibit 10.1

 

FORM OF INDEMNIFICATION AGREEMENT 

 

To:
__________

 

This
Indemnification Agreement (“Indemnification Agreement”) is being entered into effective as of ______ ____, 2022, pursuant
to the resolutions of the Board of Directors of Rail Vision Ltd., a company organized under the laws of the state of Israel (the “Company”
and the “Board” respectively) dated ______, 2022, as approved by the Company’s shareholders on ______, 2022.

 

It
is in the best interest of the Company to retain and attract as directors and/or officers the most capable persons available and such
persons are becoming increasingly reluctant to serve in companies unless they are provided with adequate protection through insurance
and indemnification in connection with such service.

 

You
are or have been appointed as a director of the Company, and in order to enhance your service to the Company in an effective manner, the
Company desires to provide hereunder for your indemnification to the fullest extent permitted by law. In consideration of your continuing
to serve the Company, the Company hereby agrees as follows:

 

1. The
Company hereby undertakes to indemnify you to the maximum extent permitted by the Companies Law – 1999 (the “Companies
Law”) in respect of the following expenses or liabilities imposed on, or incurred by, you in consequence of any act performed
or omission committed by you in your capacity as an “Office Holder” (such term shall have herein the meaning assigned to it
in the Companies Law) of the Company (including your service, at the request of the Company, as an officer, director, employee or board
observer of any other company controlled directly or indirectly by the Company (a “Subsidiary”) or in which the Company
holds shares (an “Affiliate”));

 

1.1 a
monetary liability imposed on you pursuant to a court judgment in favor of a third party, including pursuant to any settlement confirmed
as judgment or to an arbitration decision approved by a competent court; or

 

1.2 reasonable
litigation expenses, including attorney’s fees, which were incurred by you as a result of an investigation or proceeding conducted
against you by an authority authorized to conduct such an investigation or proceeding, which was either (i) “concluded without the
filing of an indictment” (as defined in Section 260(a)(1A) of the Companies Law) against you and without the imposition on
you of any “monetary obligation in lieu of a criminal proceeding” (as defined in Section 260(a)(1A) of the Companies Law),
or (ii) “concluded without the filing of an indictment” against you but with the imposition on you of a “monetary obligation
in lieu of a criminal proceeding” for an offense that does not require a proof of mens rea element; or

 

1.3 reasonable
litigation expenses, including attorneys’ fees, incurred by you, or which were imposed on you by court, (i) in a proceeding instituted
against you by the Company or on its behalf or by a third party, or (ii) in a criminal indictment of which you were acquitted, or (iii)
in a criminal indictment of which you were convicted of an offense which does not require proof of mens rea element.

 

     

     

    

 

2. Notwithstanding
the aforesaid, the Company will not indemnify you for any amount you may be obligated to pay in respect of:

 

 2.1 a
breach of your duty of loyalty to the Company or a Subsidiary or Affiliate, except, to the extent permitted by the Companies Law, for
a breach of a duty of loyalty to the Company or a Subsidiary while acting in good faith and having reasonable cause to assume that such
act would not prejudice the interests of the Company or a Subsidiary or Affiliate;

 

 2.2 a
willful breach of your duty of care or reckless disregard for the circumstances or to the consequences of a breach of your duty of care
to the Company or a Subsidiary or an Affiliate;

 

 2.3 an
action taken or omission by you with the intent of unlawfully realizing personal gain; and

 

2.4 a
fine or penalty imposed upon you for an offense; and

 

2.5
with respect to proceedings or claims initiated or brought voluntarily by you against the Company or a Subsidiary or Affiliate, other
than by way of defense or by way of third party notice to the Company or a Subsidiary or by way of countersuit in connection with claims
brought against you.

 

3. To
the fullest extent permitted by law, the Company will, following receipt by the Company of your written request therefor, make available
all amounts payable to you in accordance with Section 1 above on the date on which such amounts are first payable by you (“Time
of Indebtedness”), and with respect to items referred to in Sections 1.2 and 1.3 above, even prior to the time on which the
applicable court renders its decision, provided however, that advances given to cover legal expenses in criminal proceedings will
be repaid by you to the Company if you are found guilty of a crime which requires proof of mens rea (criminal intent). Other advances
will be repaid by you to the Company if it is determined by a court of competent jurisdiction that you are not lawfully entitled to such
indemnification as authorized hereby.

 

As
part of the aforementioned undertaking, the Company will make available to you any security or guarantee that you may be required to post
in accordance with an interim decision given by a court or an arbitrator, including for the purpose of substituting liens imposed on your
assets.

 

4. The
Company will indemnify you even if at the relevant Time of Indebtedness you are no longer an Office Holder of the Company, provided
that the obligations with respect to which you will be indemnified hereunder are in respect of actions taken by you while you were an
Office Holder of the Company as aforesaid, and in such capacity.

 

5. The
undertaking of the Company set forth in Section 1.1 shall be limited as follows:

 

 5.1. to
matters that result from or are connected or otherwise related to events or circumstances set forth in Schedule A hereto, which
are deemed by the Board, based on the current activity of the Company, to be foreseeable as of the date hereof; and

 

5.2. the
maximum amount for which the Company undertakes to indemnify you hereunder for each of the matters and circumstances described herein
(or otherwise pursuant to this Indemnification Agreement), shall not exceed an amount equal to shall not exceed the greater of $8,000,000
and 25% of the Company’s Determining Equity, in the aggregate for all of the matters and circumstances described, calculated with
respect to each director of the Company. 

 

    2

     

    

 

For
that purpose, the “Company’s Determining Equity” means its equity according
to its most recent audited or reviewed financial statements, as the case may be, as of the date of actual payment of indemnification.

 

Notwithstanding
the foregoing, the total obligation of the Company to all Office Holders, in the aggregate, including all then pending claims for indemnification
made by all directors or officers of the Company, whether under law, agreement or the articles of association of the Company, will not
exceed the greater of $8,000,000 and 25% of the Company’s Determining Equity, and if the total of all such claims exceed such amount
(or the remaining balance of such amount at the relevant time), then the limit amount per each such indemnitee shall be pro rated among
all such indemnitees proportionately to the proven indemnifiable amount of each respective indemnitee out of the aggregate indemnifiable
amount of all proven claims by all such indemnitees. 

 

6. Subject
to the limitations of Section 5 above and Section 7 below, the indemnification hereunder will, in each case, cover all sums of money (100%)
that you will be obligated to pay, in those circumstances for which indemnification is permitted under the law and under this Indemnification
Agreement.

 

7. The
Company will not indemnify you for any liability with respect to which you have received payment by virtue of an insurance policy or another
indemnification agreement other than for amounts which are in excess of the amounts actually paid to you pursuant to any such insurance
policy or other indemnity agreement (including deductible amounts not covered by insurance policies), within the limits set forth in Section
5 above. The Company will be entitled to receive any amount collected by you from a third party in connection with liabilities actually
indemnified hereunder, up to the amount actually paid to you by the Company as indemnification hereunder, to be transferred by you to
the Company within fifteen (15) days following the receipt of the said amount. 

 

8. In
all indemnifiable circumstances, indemnification will be subject to the following:

 

 8.1 You
shall promptly notify the Company in writing of any legal proceedings initiated against you and of all possible or threatened legal proceedings
for which you may seek indemnification hereunder, without delay, and in any event within seven (7) days, following your first becoming
aware thereof, provided, however, that your failure to notify the Company as aforesaid shall not derogate from your right
to be indemnified as provided herein except and to the extent that such failure to provide notice adversely prejudices the Company’s
ability to defend against such action or to conduct any directly related legal proceeding. You shall deliver to the Company, or to such
person as it shall advise you, without delay all documents you receive in connection with these proceedings or possible or threatened
proceedings. Notice to the Company shall be directed to the Chief Executive Officer of the Company (or in the case of a notice from the
Chief Executive Officer, to the Chairman of the Company) at the address shown in the signature page of this Indemnification Agreement
(or at such other address as the Company shall advise you). 

 

Similarly,
you shall advise the Company on an ongoing and current basis concerning all events which you suspect may give rise to the initiation of
legal proceedings against you in connection with your actions or omissions as an Office Holder of the Company for which you may seek indemnification
hereunder.

 

    3

     

    

 

 8.2 Other
than with respect to proceedings that have been initiated against you by the Company or in its name, the Company shall be entitled to
undertake the conduct of your defense in respect of such legal proceedings and/or to hand over the conduct thereof to any attorney which
the Company may choose for that purpose, except to an attorney who is not, upon reasonable grounds, acceptable to you. The Company shall
notify you of any such decision to defend with ten (10) calendar days of receipt of notice of any such proceeding.

 

The
Company or the attorney as aforesaid shall be entitled, within the context of the conduct as aforesaid, to conclude such proceedings,
all as they shall see fit, including by way of settlement. 

 

Notwithstanding
the foregoing, in the case of criminal proceedings, the Company or the attorneys as aforesaid will not have the right to plead guilty
in your name or to agree to a plea-bargain in your name without your consent. Furthermore, in a civil proceeding (whether before a court
or as a part of a compromise arrangement), the Company and/or its attorneys will not have the right to admit to any occurrences that are
not indemnifiable pursuant to this Indemnification Agreement and/or pursuant to law, without your consent. However, the aforesaid will
not prevent the Company or its attorneys as aforesaid, with the approval of the Company, to come to a financial arrangement with a plaintiff
in a civil proceeding or to consent to the entry of any judgment against you or enter into any settlement, arrangement or compromise,
in each case without your consent, so long as such arrangement, judgment, settlement or compromise: (i) does not include an admission
of your fault, (ii) is fully indemnifiable pursuant to this Indemnification Agreement or pursuant to law and (iii) further provides, as
an unconditional term thereof, the full release of you from all liability and limitation in respect of such proceeding. This paragraph
shall not apply to a proceeding brought by you under Section 8.7 below.

 

 8.3 You
will fully cooperate with the Company and/or any attorney as aforesaid in every reasonable way as may be required of you within the context
of their conduct of such legal proceedings, including but not limited to the execution of power(s) of attorney and other documents required
to enable the Company or its attorney as aforesaid to conduct your defense in your name, and to represent you in all matters connected
therewith, in accordance with the aforesaid, provided that the Company shall cover all reasonable costs incidental thereto such that you
will not be required to pay the same or to finance the same yourself; and provided, further, that you shall not be required to take any
action that would reasonably prejudice your defense in connection with any indemnifiable proceeding.

 

 8.4 Notwithstanding
the provisions of Sections 8.2 and 8.3 above, (i) if in a proceeding to which you are a party by reason of your status as an Office
Holder of the Company, the named parties to any such proceeding include both you and the Company or any Subsidiary or Affiliate, and joint
representation is inappropriate under applicable standards of professional conduct due to a conflict of interest or potential conflict
of interest (including the availability to the Company and its Subsidiary or Affiliate, on the one hand, and you, on the other hand, of
different or inconsistent defenses or counterclaims) that exists between you and the Company, or (ii) if the Company fails to assume the
defense of such proceeding in a timely manner, or (iii) if the Company refers the conduct of your defense to an attorney who is not, upon
reasonable grounds, acceptable to you, you shall be entitled to be represented by separate legal counsel, which may represent other persons
similarly situated, of the Company’s choice and reasonably acceptable to you and such other persons’ choice, at the expense of the
Company. In addition, if the Company fails to comply with any of its material obligations under this Indemnification Agreement or in the
event that the Company or any other person takes any action to declare this Indemnification Agreement void or unenforceable, or institutes
any action, suit or proceeding to deny or to recover from you the benefits intended to be provided to you hereunder, except with respect
to such actions, suits or proceedings brought by the Company that are resolved in favor of the Company, you shall have the right to retain
counsel of your choice, and reasonably acceptable to the Company and at the expense of the Company, to represent you in connection with
any such matter.

 

    4

     

    

 

8.5 If,
in accordance with Section 8.2 (but subject to Section 8.4), the Company has taken upon itself the conduct of your defense, you shall
have the right to employ counsel in any such action, suit or proceeding, who shall fully update, and be fully updated by, the Company
on the defense procedure and shall consult with, and be consulted with by, the Company and the attorney conducting the legal defense on
behalf of the Company, but the fees and expenses of such counsel, incurred after the assumption by the Company of the defense thereof,
shall be at your expense and the Company will have no liability or obligation pursuant to this Indemnification Agreement or the above
resolutions to indemnify you for any legal expenses, including any legal fees, that you may expend in connection with your defense, unless
the Company shall agree to such expenses; in which event all reasonable fees and expenses of your counsel shall be borne by the Company
to the extent so agreed to by the Company.

 

 8.6 The
Company will have no liability or obligation pursuant to this Indemnification Agreement to indemnify you for any amount expended by you
pursuant to any compromise or settlement agreement reached in any suit, demand or other proceeding as aforesaid without the Company’s
consent to such compromise or settlement, which consent shall not be unreasonably withheld.

 

 8.7 If
required by law, the Company’s authorized organs will consider the request for indemnification and the amount thereof and will determine
if you are entitled to indemnification and the amount thereof. In the event that you make a request for payment of an amount of indemnification
hereunder or a request for an advancement of indemnification expenses hereunder and the Company fails to determine your right to indemnification
hereunder or fails to make such payment or advancement, you may petition any court which has jurisdiction to enforce the Company’s
obligations hereunder. The Company agrees to reimburse you in full for any reasonable expenses incurred by you in connection with investigating,
preparing for, litigating, defending or settling any action brought by you under the immediately preceding sentence or otherwise in enforcing
this Indemnification Agreement, except where such action or any claim or counterclaim in connection therewith is resolved in favor of
the Company.

 

 8.8 Neither
the Company nor any of its agents, employees, directors or officers shall make any statement to the public or to any other person regarding
any settlement of claims made pursuant to this Indemnification Agreement against you that would in any manner cast any negative light,
inference or aspersion against you.

 

 8.9 By
signing this Indemnification Agreement you hereby accept that you shall not make any statement to the public or to any other person regarding
any settlement of claims made pursuant to this Indemnification Agreement against you or the Company that would in any manner cast any
negative light, inference or aspersion against the Company, and that you will keep the terms of such settlement confidential.

 

    5

     

    

 

9. The
Company hereby exempts you, to the fullest extent permitted by law, from any liability for damages caused as a result of a breach of your
duty of care to the Company, provided that in no event shall you be exempt with respect to any actions listed in Section 2 above
or for a breach of your duty of care in connection with a Distribution (as defined in the Companies Law).

 

10. If
for the validation of any of the undertakings in this Indemnification Agreement, any act, resolution, approval or other procedure is required,
the Company undertakes to cause them to be done or adopted in a manner which will enable the Company to fulfill all its undertakings as
aforesaid.

 

11. Nothing
contained in this Indemnification Agreement shall derogate from the Company’s right (but in no way obligation) to indemnify you
post factum for any amounts which you may be obligated to pay as set forth in Section 1 above without regard to the limitations
set forth in Section 5 above. Your rights of indemnification hereunder shall not be deemed exclusive of any other rights you may have
under the Company’s articles of association or applicable law or otherwise.

 

12. If
any undertaking included in this Indemnification Agreement is held invalid or unenforceable, such invalidity or unenforceability will
not affect any of the other undertakings which will remain in full force and effect. Furthermore, if such invalid or unenforceable undertaking
may be modified or amended so as to be valid and enforceable as a matter of law, such undertaking will be deemed to have been modified
or amended, and any competent court or arbitrator is hereby authorized to modify or amend such undertaking, so as to be valid and enforceable
to the maximum extent permitted by law.

 

13. This
Indemnification Agreement and the agreements herein shall be governed by and construed and enforced in accordance with the laws of the
State of Israel, without regard to the rules of conflict of laws, and any dispute arising from or in connection with this Indemnification
Agreement is hereby submitted to the sole and exclusive jurisdiction of the competent courts in Tel Aviv, Israel.

 

14.
This Indemnification Agreement cancels and replaces any preceding letter of indemnification or arrangement for indemnification that may
have been issued to you by the Company. Notwithstanding the foregoing, the indemnification obligation set forth in this Indemnification
Agreement will also apply, subject to the terms, conditions and limitations set forth in this Indemnification Agreement, with respect
to actions committed, in your capacity as an Office Holder of the Company, during the period prior to the date of this Indemnification
Agreement.

 

15. Neither
the settlement nor termination of any proceeding nor the failure of the Company to award indemnification or to determine that indemnification
is payable shall create an adverse presumption that you are not entitled to indemnification hereunder. In addition, the termination of
any proceeding by judgment or order (unless such judgment or order provides so specifically) or settlement, shall not create a presumption
that you did not act in good faith and in a manner which you reasonably believed to be in or not opposed to the best interests of the
Company or, with respect to any criminal action or proceeding, had reasonable cause to believe that your action was unlawful.

 

16. This
Indemnification Agreement shall be (a) binding upon all successors and assigns of the Company (including any transferee of all or a substantial
portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger or consolidation or otherwise
by operation of law), and (b) binding on and shall inure to the benefit of your heirs, personal representatives, executors and administrators.
This Indemnification Agreement shall continue for your benefit and your heirs’, personal representatives’, executors’ and administrators’
benefit after you cease to be a director or Office Holder of the Company.

 

    6

     

    

 

17. Except
with respect to changes in the governing law which expand your right to be indemnified by the Company, no supplement, modification or
amendment of this Indemnification Agreement shall be binding unless executed in writing by each of the parties hereto. No waiver of any
of the provisions of this Indemnification Agreement shall be deemed or shall constitute a waiver of any other provisions of this Indemnification
Agreement (whether or not similar), nor shall such waiver constitute a continuing waiver. Any waiver shall be in writing.

 

18. All
notices and other communications required or permitted under this Indemnification Agreement shall be in writing, shall be effective (i)
if mailed, three (3) business days after mailing (unless mailed abroad, in which case it shall be effective five (5) business days after
mailing), (ii) if by air courier, two (2) business days after delivery to the courier service, (iii) if sent by messenger, upon delivery,
and (iv) if sent via facsimile, upon transmission and electronic (or other) confirmation of receipt or (if transmitted and received on
a non-business day) on the first business day following transmission and electronic (or other) confirmation of receipt and (iv) if sent
by email, on the date of transmission or (if transmitted and received on a non-business day) on the first business day following transmission,
except where a notice is received stating that such mail has not been successfully delivered.

 

The
Board has determined, based on the current activity of the Company, that the amount stated in Section 5 is reasonable and that the events
listed in Schedule A are reasonably anticipated.

 

Kindly
sign and return the enclosed copy of this Indemnification Agreement to acknowledge your agreement to the contents hereof.

 

[Signature
Page to Follow]

 

    7

     

    

 

Sincerely yours,

 

	 	Rail Vision Ltd.
	 	 	 
	 	By:	 
	 	Name:  	
	 	Title: 	

 

	Accepted and agreed to:	 
	 	 
	 	 
	Name: _________, director	 

 

Schedule A

 

All references in this schedule to the “Company”
shall be deemed to refer to a Subsidiary or Affiliate as well, to the extent that your service as an officer, director, employee or board
observer of the Subsidiary or Affiliate is at the request of the Company in the circumstances described in the preface of Section 1 to
the Indemnification Agreement.

 

1. The
offering of securities by the Company and/or by a shareholder to the public and/or to private investors or the offer by the Company to
purchase securities from the public and/or from private investors or other holders pursuant to a prospectus, agreement, notice, report,
tender and/or other proceeding, whether in Israel or abroad;

 

2. Occurrences
in connection with investments the Company make in other corporations whether before and/or after the investment is made, entering into
the transaction, the execution, development and monitoring thereof, including actions taken by you in the name of the Company as an Office
Holder and/or board observer of the corporation which is the subject of the transaction and the like;

 

3. The
sale, purchase and holding of negotiable securities or other investments for or in the name of the Company;

 

4. Actions
in connection with the merger of the Company with or into another entity;

 

5. Actions
in connection with the sale of the operations and/or business, or part thereof, of the Company;

 

    8

     

    

 

6. Without
derogating from the generality of the above, actions in connection with the purchase or sale of companies, legal entities or assets, and
the division or consolidation thereof;

 

7. Actions
concerning the approval of transactions of the Company with officers and/or directors and/or holders of controlling interests in the Company,
and any other transactions referred to in Section 270 of the Companies Law;

 

8. Actions
taken in connection with labor relations and/or employment matters in the Company and trade relations of the Company, including with employees,
independent contractors, customers, suppliers and various service providers;

 

9. Actions
in connection with the development or testing of products developed by the Company, whether performed by the Company or by third parties
on behalf of the Company, and/or in connection with the distribution, sale, license or use of such products, including without limitation
in connection with professional liability and product liability claims and/or in connection with the procedure of obtaining regulatory
approvals regarding such products, whether in Israel or abroad;

 

10. Actions
taken in connection with the intellectual property of the Company, and its protection, including the registration or assertion of rights
to intellectual property and the defense of claims related to intellectual property, including any assertion that the Company’s
products infringe on the intellectual property rights or constitute a misappropriation of any third party’s trade secrets;

 

11. Actions
taken pursuant to or in accordance with the policies and procedures of the Company (including tax policies and procedures), whether such
policies and procedures are published or not;

 

12. Approval
of corporate actions, in good faith, including the approval of the acts of the Company’s management, their guidance and their supervision;

 

13. Claims
of failure to exercise business judgment and a reasonable level of proficiency, expertise and care in regard of the Company’s business;

 

14. Violations
of laws requiring the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction;

 

15. Claims
in connection with publishing or providing any information, including any filings with governmental authorities, on behalf of the Company
in the circumstances required under applicable laws;

 

16. Any
claim or demand made under any securities laws or by reference thereto, or related to the failure to disclose any information in the manner
or time such information is required to be disclosed pursuant to such laws, or related to inadequate or improper disclosure of information
to shareholders, or prospective shareholders, or related to the purchase, holding or disposition of securities of the Company or any other
investment activity involving or effected by such securities, including, for the removal of doubt, any offering of the Company’s
securities to private investors or to the public, and listing of such securities, or the offer by the Company to purchase securities from
the public or from private investors or other holders, and any undertakings, representations, warranties and other obligations related
to any such offering, listing or offer or to the Company’s status as a public company or as an issuer of securities;

 

    9

     

    

 

17. Any
claim or demand made by any lenders or other creditors or for monies borrowed by, or other indebtedness of, the Company;

 

18. Any
claim or demand made directly or indirectly in connection with complete or partial failure, by the Company, or their respective directors,
officers and employees, to pay, report, keep applicable records or otherwise, any state, municipal or foreign taxes or other mandatory
payments of any nature whatsoever, including, without limitation, income, sales, use, transfer, excise, value added, registration, severance,
stamp, occupation, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll
or employee withholding or other withholding, including any interest, penalty or addition thereto, whether disputed or not;

 

19. Any
claim or demand made by purchasers, holders, lessors or other users of products of the Company, or individuals treated with or exposed
to such products, for damages or losses related to such use or treatment;

 

20. Actions
taken in connection with the financial and tax reports of the Company;

 

21. Claims
in connection with anti-competitive laws and regulations and laws and regulation of commercial wrongdoing;

 

22. Claims
in connection with laws and regulations regarding invasion of privacy, including with respect to databases, and laws and regulations in
regard of slander;

 

23. Claims by any third
party suffering any personal injury and/or bodily injury and/or property damage to business or personal property through any act or omission
attributed to the Company, or its employees, agents or other persons acting or allegedly acting on their behalf.

 

 

10Exhibit 10.2

 

RAIL VISION LTD.

 

AMENDED SHARE OPTION PLAN

 

		1.	Purpose: The purpose of this Share Option Plan is to provide an additional incentive to Employees,
Directors, Consultants and certain other Service Providers of the Company (as defined below) and any Affiliate of the Company (as defined
below) to further the growth, development and financial success of the Company by providing them with opportunities to purchase Shares
(as defined below) of the Company pursuant to this Share Option Plan and to promote the success of the Company’s business.

 

		2.	Definitions: For the purposes of this Share Option Plan, the following terms shall have the meaning
ascribed thereto below:

 

		a)	“Additional Rights” means any distribution
of rights, including an issuance of bonus shares and stock dividends (but excluding cash dividends), in connection with Section 102 Trustee
Options (as defined below) and/or the Shares issued upon exercise of such Options.

 

		b)	“Afflliate(s)” means a present or future company that either (i) controls the Company
or is controlled by the Company; or (ii) is controlled by the same person or entity that controls the Company, provided that for the purpose
of grants made under Section 102, such company is an “employing company” within the meaning of Section 102(a) of the Tax Ordinance
(as defined below).

 

		c)	“Board’’ means the Board of Directors
of the Company.

 

		d)	“Cause” means any of the following: (i) a
serious breach of trust, including but not limited to, theft, embezzlement, self-dealing, and/or breach of fiduciary duties; (ii) the
Optionee (as defined below) has committed any flagrant criminal offense; (iii) a material breach by the Optionee of any agreement between
the Optionee and the Company and/or any Affiliate, which has not been remedied within thirty (30) days after the Optionee has received
a written demand for performance from the Company; or (iv) any other circumstance justifying termination or dismissal without severance
payment according to Israeli law.

 

		e)	“Committee” means a committee of Directors
(as defined below) to which the Board may delegate power to act under or pursuant to the provisions of the Plan. In the absence of any
such delegation, the Committee will consist of the entire Board.

 

		f)	“Company” means Rail Vision Ltd., a company
incorporated under the laws of the State of Israel.

 

		g)	“Companies Law” means the Israeli Companies
Law 5759-1999, as amended.

 

		h)	“Consultant” means any person or entity that
is engaged by the Company or any Affiliate of the Company to render consulting or advisory services to such entity.

 

		i)	“Controlling Shareholder” has the meaning ascribed
to it in Section 32(i) of the Tax Ordinance.

 

		j)	“Corporate Transaction” means the consummation
of any of the following transactions or series of related transactions to which the Company is a party:

  

		 	i) any person becomes a beneficial owner, directly or indirectly, of either (A) 50% or more of the
                                                                                      then-outstanding Shares or (B) securities of the Company representing 50% or more of the combined voting power of the
                                                                                      Company’s then outstanding securities eligible to vote for the election of directors; provided, however, that for purposes of
                                                                                      this subsection i), the following acquisitions of shares or the Company’s voting securities shall not constitute a Change in
                                                                                      Control: (w) an acquisition directly from the Company pursuant to share issuances, share purchases, or similar acquisitions by
                                                                                      Company shareholders, (x) an acquisition by the Company or an Affiliate, (y) an acquisition by any employee benefit plan (or related
                                                                                      trust) sponsored or maintained by the Company or any Affiliate, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as
                                                                                      defined in subsection (ii) below);

 

     

     

    

 

		 	ii) the consummation of a reorganization, merger, consolidation, statutory share exchange or similar
                                                                                      form of corporate transaction involving the Company or an Affiliate (a “Reorganization”), or the sale or other
                                                                                      disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock
                                                                                      of another corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or
                                                                                      Acquisition: (A) all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the
                                                                                      outstanding Shares and outstanding Company’s voting securities immediately prior to such Reorganization, Sale or Acquisition
                                                                                      beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding Shares and the combined voting power
                                                                                      of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity
                                                                                      resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such
                                                                                      transaction owns the Company or all or substantially all of the Company’s assets or shares either directly or through one or
                                                                                      more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior
                                                                                      to such Reorganization, Sale or Acquisition, of the outstanding Shares and outstanding voting securities, as the case may be, and
                                                                                      (B) no person (other than (x) the Company or any Affiliate, (y) the Surviving Entity or its ultimate parent entity, or (z) any
                                                                                      employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the beneficial owner, directly or
                                                                                      indirectly, of 50% or more of the total ordinary shares or 50% or more of the total voting power of the outstanding voting
                                                                                      securities eligible to elect directors of the Surviving Entity (any Reorganization, Sale or Acquisition which satisfies all of the
                                                                                      criteria specified in (A) and (B) above shall be deemed to be a “Non-Qualifying Transaction”);

 

		k)	“Director” means a member of the Board of
Directors of the Company.

 

		l)	“Disability” means a complete and permanent
inability, due to illness or injury, to perform the duties of the Optionee’s engagement at such time when the disability commenced, as
determined by the Committee based on medical evidence acceptable to it.

 

		m)	“Employee” means any person, including officers
and Directors, employed by the Company or any Affiliate of the Company. A person employed by the Company or any Affiliate of the Company
shall not cease to be an Employee for the purposes of the Plan in the case of (i) any leave of absence approved by the Company, or (ii)
transfer between locations of the Company, or (iii) transfer of employment between the Company and any Affiliate or any successor thereto.
With regard to Section 102 Trustee Options and Section 102 Non-Trustee Options (as defined below), “Employee” includes Directors
and office holders (“Nosei Misra” as such term is defined in the Israeli Companies Law), and excludes any person who
is a Controlling Shareholder prior to and/or after the issuance of the Shares issued upon exercise of the Options.

 

		n)	“Exercise Price” means the price per Share
determined by the Committee in accordance with Section 10 below, which is to be paid to the Company in order to exercise an Option and
purchase the Share(s) covered thereby.

 

		o)	“Expiration Date” of an Option means the earlier
of: (i) the lapse of ten (10) years from the date such Option was granted; or (ii) the expiration date set forth in the Option Agreement.

 

		p)	“Fair Market Value” means, as of any date,
the value of a Share determined as follows:

 

		i)	If the Shares are admitted to trading on any established stock exchange or a national market system, including
without limitation the Nasdaq National Market or the Nasdaq Small Cap Market of the Nasdaq Stock Market, the Fair Market Value shall be
the closing sale price of a Share on the principal exchange on which Shares are then trading (or as reported on any composite index which
includes such principal exchange), on the trading day immediately preceding such date, or if Shares were not traded on such date, then
on the next preceding date of which a trade occurred, as reported in The Wall Street Journal or such other source as the Committee
deems reliable;

 

		ii)	If the Shares are not traded on an exchange, but are admitted to quotation on the Nasdaq or other comparable
quotation system, the Fair Market Value shall be the mean between closing representative bid and asked prices for the Shares on the trading
day immediately preceding such date or, if no bid and ask prices were reported on such date, then on the last date preceding such date
on which both bid and ask prices were reported, all as reported by Nasdaq or such other comparable quotation system; or

 

		iii)	If the Shares are not publicly traded on an exchange and not quoted on Nasdaq or a comparable quotation
system, the Fair Market Value shall be determined in good faith by the Committee.

 

		iv)	Without derogating from the foregoing and solely for the purpose of determining the tax liability, in
the case of Capital Gain Option Through a Trustee (as defined below), the Fair Market Value of a Share at grant shall be determined in
accordance with the provisions of Section 102(b)(3) of the Tax Ordinance as further detailed in Section 17(b) below.

 

		q)	“IPO” means an initial underwritten public offering of the Shares of the Company pursuant
to an effective registration statement under the United States Securities Act of 1933, as amended or the Israeli Securities Law, 5728-1968.
as amended or equivalent law of another jurisdiction.

 

    2

     

    

 

		r)	“Lock-up Period” means the period during which the Section 102 Trustee Options granted
to an Optionee or, upon exercise thereof the underlying Shares as well as any Additional Rights distributed in connection therewith are
to be held by the Trustee (as defined below) on behalf of the Optionee, in accordance with Section 102 (as defined below) and pursuant
to the tax route which the Company elects.

 

		s)	“Notice of Exercise” has the meaning ascribed
to it in Section 11 below.

 

		t)	“Option(s)” means a right to purchase Shares
granted under Section 8 below in accordance with the provisions of the Option Agreement, and subject to the terms specified in the Plan,
whether a Section 102 Trustee Option, Section 102 Non-Trustee Option, Section 3(i) Option, or option issued under other tax regimes.

 

		u)	“Optionee(s)” means the holder of an outstanding
Option granted under the Plan.

 

		v)	“Option Agreement” means a written or electronic agreement between the Company and
the Optionee evidencing the terms and conditions of an individual grant of Option, as further specified in Section 8 below. The Option
Agreement is subject to the terms and conditions of the Plan.

 

		w)	“Plan” means this Share Option Plan, as amended from time to time.

 

		x)	“Proxy Holder’ means the Chairman of the Board, as shall be in office from time to time or
any other person designated by the Board to act as proxy holder.

 

		y)	“Section 3(i)” means that certain Section 3(i) of the Tax Ordinance, and any regulations,
rules, orders or procedures promulgated thereunder, all as amended.

 

		z)	“Section 3(i) Option” means an Option granted
pursuant to Section 3(i).

 

		aa)	“Section 102” means that certain Section 102 of the Tax Ordinance, and any regulations,
rules, orders or procedures promulgated thereunder, including the Income Tax Rules (Tax Relief for Issuance of Shares to Employees), 2003,
all as amended.

 

		bb)	“Section 102 Trustee Option” means an Option that by its terms qualifies and is intended
to qualify under the provisions of Section 102(b) of the Tax Ordinance (including the Section 102(b) Route Election (as defined below)),
as either:

 

		cc)	“Ordinary Income Option Through a Trustee” for the special tax treatment under Section
102(b)(1) and the “Ordinary Income Route”, or

 

		i)	“Capital Gain Option Through a Trustee” for
the special tax treatment under Section 102(b)(2) and the “Capital Route”.

 

		ii)	“Section 102(b) Route Election” means the
right of the Company to choose either the “Capital Route” (as set under Section 102(b)(2)), or the “Ordinary Income
Route” (as set under Section 102(b)(1)), but subject to the provisions of Section 102(g) of the Tax Ordinance, as further specified
in Section 6 below.

 

		dd)	“Section 102 Non-Trustee Option” means an Option that by its terms does not qualify
or is not intended to qualify as a Section 102 Trustee Option and is granted not through a trustee under the terms of Section 102(c) of
the Tax Ordinance.

 

		ee)	“Service Provider” means an Employee, officer, Director or Consultant.

 

		ff)	“Share(s)” means an Ordinary Share, nominal value NIS 0.01 of the Company, as adjusted
in accordance with Section 13 of the Plan.

 

		gg)	“Tax Ordinance” means the Israeli Income Tax Ordinance (New Version), 1961, as amended.

 

		hh)	“Trust Agreement” means a written agreement between the Company and the Trustee, which
sets forth the terms and conditions of the trust and is in accordance with the provisions of Section 102(b).

 

    3

     

    

 

		ii)	“Trustee’’ means a person or an entity, appointed by the Company and approved in accordance
with the provisions of Section 102, to hold in trust on behalf of the Optionees the granted Options, or upon exercise thereof, the Shares,
as well as any Additional Rights granted in connection therewith, in accordance with the provisions of Section 102.

 

		3.	Interpretation: Unless the context otherwise indicates, words expressed in the singular shall include
the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and shall be deemed to mean
and include the neuter, masculine or feminine gender, as appropriate.

 

		4.	Administration:

 

		a)	The Committee shall have the power to administer the 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.

 

		b)	Subject to the terms and conditions of this Plan, and subject to the approval of any relevant authorities
and to applicable laws, the Committee shall have full power and authority, at all times, to: (i) select the Service Providers to whom
Options may from time to time be granted hereunder, and to grant the Options to the said Service Providers; (ii) determine the terms and
provisions of the Option Agreements (which need not be identical) including, but not limited to, the type of Option to be granted, the
number of Shares to be covered by an Option, the Exercise Price, the times or conditions upon which and the extent to which an Option
shall be vested and may be exercised and the nature and duration of any restrictions applicable to the Options or the underlying Shares,
including as to transferability or exercise of the same; (iii) accelerate the right of an Optionee to exercise, in whole or in part, any
Option, or extend such right; (iv) approve forms of Option Agreement for use under the Plan; (v) make a Section 102(b) Route Election
(subject to the limitations set under Section 102(g)); (vi) interpret and construe the provisions of the Plan and the Option Agreements;
(vii) determine the Fair Market Value of the Shares; (viii) adopt sub-plans, Plan addenda and appendices to the Plan as the Committee
deems desirable, to accommodate foreign laws, regulations and practice. The provisions of such sub-plans, Plan addenda and appendices
to the Plan may take precedence over other provisions of the Plan, but unless otherwise superseded by the terms of such sub-plans, Plan
addenda and appendices to the Plan, the provisions of the Plan shall govern their operation; (ix) exercise such powers and perform such
acts as are deemed necessary or expedient to promote the best interests of the Company with respect to the Plan, including but not limited
to prescribe, amend and rescind any rules and regulations relating to the Plan (including rules and regulations relating to sub-plans.
Plan addenda and appendices to the Plan established for the purpose of satisfying applicable foreign laws); and (x) take all other action
and determine any other matter which is necessary or desirable for, or incidental to, the administration of the Plan.

 

		c)	The interpretation and construction by the Committee of any provision of the Plan (including sub-plans,
Plan addenda and appendices to the Plan), the Option Agreement or of any Option thereunder shall be final and conclusive, unless otherwise
determined by the Board.

 

		a)	Reserved Shares: The Company, during the term of this Plan, shall reserve and keep available such
number of Shares as shall be sufficient to satisfy׳ the requirements of the Plan. The Shares subject to the Plan may be either authorized
but unissued Shares or reacquired Shares, subject to applicable laws.

 

		b)	Any Shares under the Plan, in respect of which the right hereunder of an Optionee to purchase the same
shall for any reason terminate, become cancelled, expire or otherwise cease to exist, shall again be available for grant through Options
under the Plan (unless the Plan has terminated); provided, however, that any Shares not issued or tendered to the Company related to the
payment of the Exercise Price of an Option or tax withholding obligations as provided under Section 17 shall not be available for grant
through Options under the Plan. No fraction of Shares may be issued under the Plan.

 

		c)	The Board may, at any time during the term of the Plan, increase the number of Shares available for grant
under the Plan. The approval of the Company’s shareholders of such increase shall be obtained if so required under applicable laws
and/or the Company’s incorporation documents and/or any shareholders agreement, as shall be in effect from time to time.

 

    4

     

    

 

		5.	Section 102(b) Route Election: No Section 102 Trustee Options may be granted under this Plan to
any eligible Optionee, unless and until, the Company’s election of the type of Section 102 Trustee Options either as “Ordinary Income
Option Through a Trustee” or as “Capital Gain Option Through a Trustee” is appropriately filed with the Income Tax Authorities.
The Section 102(b) Route Election shall obligate the Company to grant only the type of Section 102 Trustee Option it has elected,
and shall apply to all Optionees who were granted Section 102 Trustee Options during the period indicated herein, to the extent required
under and in accordance with the provisions of Section 102(g) of the Tax Ordinance and the applicable regulations. For avoidance of doubt,
it is clarified that the Company does not obligate itself to file a Section 102(b) Route Election, and in any case, such Section 102(b)
Route Election shall be at the sole discretion of the Company. It is further clarified that such Section 102(b) Route Election shall not
prevent the Company from granting Section 102 Non-Trustee Options simultaneously.

 

		6.	Eligible Optionees:

 

		a)	Subject to the terms and conditions of the Plan and any restriction imposed by applicable laws, Options
may be granted to Service Providers, as selected by the Committee in its sole discretion, provided however, that, (i) Section 102
Trustee Options and Section 102 Non-Trustee Options may be granted only to Israeli Employees of the Company and any Affiliate thereof,
and provided further that, such Affiliate corporation is an “employing company” within the meaning of Section 102(a) of the
Tax Ordinance; and (ii) Section 3(i) Options may be granted only to Israeli (a) Consultants; and/or (b) employees, Directors and/or officers
of the Company or any Affiliate who are Controlling Shareholders prior to and/or after the issuance of the Shares underlying the Options.

 

		b)	Eligibility to participate in the Plan does not confer any right to be granted with Options under the
Plan. Participation in the Plan is voluntary. The grant of an Option to a Service Provider hereunder, shall neither entitle such Service
Provider to participate, nor disqualify him from participating, in any other grant of Options pursuant to this Plan or any other share
incentive or stock option plan of the Company or any Affiliate of the Company.

 

		7.	Issuance of Options:

 

		a)	Options may be granted at any time after the Plan shall become effective as specified in Section 18 hereof,
subject to obtaining all the necessary approvals (if any) from any regulatory body or governmental agency having jurisdiction over the
Company and/or any Affiliate and/or any Optionee. In the case of Section 102 Trustee Options, Options may be granted only after the passage
of thirty (30) days (or a shorter period as and if approved by the tax authorities) following the delivery by the Company to the appropriate
Israeli Income Tax Authorities of a request for approval of the Plan and the Trustee according to Section 102. Notwithstanding the above,
if within ninety (90) days of delivery of the abovementioned request, the tax officer notifies the Company of its decision not to approve
the Plan, the Options, which were intended to be granted as a Section 102 Trustee Options, shall be deemed to be Section 102 Non-Trustee
Options, unless otherwise was approved by the tax officer. The date of grant of each Option shall be the date specified by the Committee
at the time such Option is granted and subject to the applicable laws and regulations.

 

		b)	An Option Agreement shall evidence each Option granted pursuant to the Plan. The Option Agreement shall
state, inter alia, the number of Shares covered thereby, the type of Option granted thereunder, the vesting schedule (including
any performance-based vesting criteria) and any acceleration thereof, , the Exercise Price and such other terms and conditions as the
Committee in its discretion may prescribe, provided that they are consistent with this Plan and applicable laws.

 

		8.	Trustee: In connection with the grant of any Section 102
Trustee Options, the following shall apply:

 

		a)	Notwithstanding anything to the contrary contained in the Plan. Section 102 Trustee Options, which shall
be granted under the Plan and any Shares issued upon exercise of such Options shall be issued to the Trustee who shall hold the same in
trust for the benefit of the Optionee at least for the Lock-up Period. Upon the conclusion of the Lock-up Period and subject to any further
period included in the Plan and/or in the Option Agreement, the Trustee may release Section 102 Trustee Options or Shares issued upon
exercise of such Options to Optionee only after the Optionee’s full payment of his tax liability in connection therewith due pursuant
to the Tax Ordinance.

 

		b)	Notwithstanding the above, in the event an Optionee shall elect to release the Section 102 Trustee Options
and/or the Shares issued upon exercise of such Options prior to the conclusion of the Lock-up Period, the sanctions under Section 102
shall apply to and shall be borne solely by the Optionee.

 

    5

     

    

 

		c)	Any Additional Rights distributed to the Optionee on account of Section 102 Trustee Options shall be deposited
with and/or issued to the Trustee for the benefit of the Optionee, and shall be held by the Trustee for the applicable Lock-up Period
in accordance with the provisions of Section 102 and the elected tax route.

 

		d)	The Company, any Affiliate of the Company (if applicable), the Trustee and the Optionee shall comply with
the Tax Ordinance, Section 102 and the provisions of the Trust Agreement.

 

		e)	Upon receipt of Section 102 Trustee Options, Optionee will sign the Option Agreement, which shall be deemed
as the Optionee’s undertaking to exempt the Trustee from any liability in respect of any action or decision duly taken and bona
fide executed in relation with the Plan and any Option, Share, Additional Right or other rights received by the Optionee in connection
therewith.

 

		f)	The Committee shall determine and approve the terms of engagement of the Trustee, and shall be authorized
to designate from time to time a new Trustee and replace either of them at its sole discretion, and in the event of replacement of any
existing Trustee, to instruct the transfer of all Options and Shares held by such Trustee at such time to its successor.

 

		g)	For as long as the Trustee holds Shares in trust for the benefit of the Optionee, the Trustee shall not
use the voting rights vested in such Shares, and shall not exercise such rights in any way whatsoever. In the event the right to vote
such Shares is held by the Trustee pursuant to Section 102, then upon the exercise of any Section 102 Trustee Option by the Optionee,
the Trustee shall execute an irrevocable voting proxy in such form as may be prescribed by the Committee in accordance with the provisions
of Section 11(j) of the Plan and the provisions of Section 102.

 

		9.	Option Exercise Price and Consideration:

 

		a)	The Exercise Price shall be determined by the Committee on the date of grant of an Option, on an individual
basis, subject to any guidelines as may be determined by the Board from time to time and any applicable law; provided, however, that the
Exercise Price shall be not less than the nominal value of the Shares underlying the Option.

 

		b)	The consideration to be paid for the Shares to be issued upon exercise of an Option, including the method
of payment, shall be determined by the Committee subject to applicable laws. Such consideration may consist of, without limitation, (1)
cash, or (2) check or wire transfer, or (3) at the discretion of the Committee, consideration received by the Company under a broker-assisted
sale and remittance program acceptable to the Committee, or (4) at the discretion of the Committee, any combination of the foregoing methods
of payment.

 

		10.	Vesting and Exercise of Options:

 

		a)	Each Option Agreement shall provide the vesting schedule for the Option as determined by the Committee.
The Committee shall have the authority to determine the vesting schedule and accelerate the vesting of any outstanding Option at such
time and under such circumstances as it, in its sole discretion, deems appropriate.

 

		b)	The Option Agreement may contain performance goals and measurements (which, in the case of Options granted
in accordance with Section 102, shall, if then required, be subject to obtaining a specific tax ruling or determination from the appropriate
Israeli Income Tax Authorities), and the provisions with respect to any Option need not be the same as the provisions with respect to
any other Options.

 

    6

     

    

 

		c)	Options shall be exercisable pursuant to the terms under which they were awarded and subject to the terms
and conditions of this Plan and the Option Agreement; provided, however, that in no event shall an Option be exercisable after its Expiration
Date, as further specified in Section 11(d) below.

 

Unless the Committee
provides otherwise, vesting of Options granted hereunder shall be suspended during any unpaid leave of absence.

 

		d)	Anything herein to the contrary notwithstanding, if any Option, or any part thereof, has not been exercised
prior to its Expiration Date and the Shares covered thereby not paid for until such date, then such Option, or such part thereof, and
the right to acquire such Shares shall terminate, and all interests and rights of the Optionee in and to the same shall expire.

 

		e)	Options may be exercised only to purchase whole Shares, and in no case may a fraction of a Share be purchased.
If any fractional Share would be deliverable upon exercise, including but not limited to, as a result of adjustments as provided in Section
14 hereof, such fraction shall be rounded up one-half or less, or otherwise rounded down, to the nearest whole number of Shares.

 

		f)	An Option, or any part thereof, shall be exercisable by the Optionee’s signing and returning to the Company
at its principal office, on any business day, a “Notice of Exercise” in such form and substance as may be prescribed by the
Committee from time to time and in accordance with the requirements of applicable laws, which exercise shall be effective upon receipt
of such signed notice by the Company at its principal office. The Notice of Exercise shall specify the number of Shares with respect to
which the Option is being exercised and shall be accompanied by payment of the aggregate Exercise Price due with respect to the Shares
to be purchased. Such payment may consist of any consideration and method of payment authorized by the Committee and permitted by the
Option Agreement and the Plan. If required under applicable laws, the Notice of Exercise shall also be accompanied by payment of the aggregate
withholding taxes due with respect to the exercise of Options and/or purchased Shares.

 

		g)	If applicable laws require the Company to take any action with respect to the Shares specified in the
Notice of Exercise before the issuance thereof, then the date of their issuance shall be extended for the period necessary to take such
action.

 

		h)	Prior to exercise, the Optionee shall have none of the rights and privileges of a shareholder of the Company
in respect to any Shares purchasable upon the exercise of any part of an Option. Until the Shares are issued (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to receive dividends or any other rights
as a shareholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause
to be issued) such Shares promptly after the Option is exercised, subject to the provisions of Section 15 hereof. No adjustment will be
made for a dividend or other right, for which the record date precedes the date of issuance of the Shares, except as provided in Section
13 hereof.

 

		i)	Except and to the extent otherwise expressly provided herein, the Shares acquired under an Option shall
be subject to the provisions of the Company’s incorporation documents, as amended from time to time and/or any other shareholders agreement
in effect.

 

		j)	To the extent permitted by applicable law, an Option Agreement may include a requirement that concurrently
with the exercise of any Option and as a condition precedent to such exercise and the issuance of any Shares in respect thereof, the Optionee
shall sign and deliver to the Company an irrevocable power of attorney and voting proxy in such form as may be prescribed by the Committee.
By this proxy, the Optionee’s right to vote any acquired Shares shall be assigned to the Proxy Holder, who shall vote such Shares
on any issue brought before the shareholders of the Company in accordance with the majority vote of the shareholders of the Company (as
voted by the shareholders without taking such acquired Shares in consideration). Such power of attorney and voting proxy shall expire
and be of no further force and effect upon the consummation of an IPO.

 

    7

     

    

 

		11.	Net Exercise:

 

Notwithstanding the provisions of Section
11 above, the Board may determine that in lieu of exercising Options for cash, the Optionee may elect to receive Shares equal to the aggregate
value of the Options (or the portion thereof being exercised) against payment of the par value of such exercised Shares, by written notice
of such election to the Company, in which event the Company shall issue to the Optionee, for no additional consideration (other than the
par value of such exercised Shares), that number of Shares computed using the following formula:

 

	 	X =	Y (A-B)	 
	 	 	A-N	 

 

Where

 

		X = 	The number of Shares to be issued to the Grantee.

 

		Y = 	The number of Vested Options that the Grantee wishes to exercise.

 

		A = 	The Fair Market Value of one (1) Share, which, if the Shares
are traded on a stock exchange, will be considered as the average known closing price (or closing bid if no sales have been reported)
of the Company’s share on the applicable stock exchange in the 30 days prior to the date of delivery of the exercise notice by
the Optionee to the Company.

 

		B = 	The Exercise Price.

 

		N = 	Par Value of Exercise Share

 

		12.	Termination of Relationship as a Service Provider:

 

		a)	Except as provided below, an Option, or any part thereof, may not be exercised unless the Optionee is
then a Service Provider of the Company or any Affiliate thereof, and unless the Optionee has remained continuously a Service Provider
since the date of grant of the Option, unless the Committee determines that a longer period is applicable or such longer period is otherwise
set forth in the Option Agreement.

 

		b)	Unless otherwise approved by the Committee or set forth in the Option Agreement, if an Optionee ceases
to be a Service Provider of the Company or any Affiliate thereof for any reason (including, but not limited to retirement, but excluding
termination by reasons of Cause, Optionee’s Disability or death, for which events there are special rules in Sections 13(c) and 13(d)
below), all Options granted to the Optionee, which are vested and exercisable at the time of such termination, may be exercised within
one (1) month following the date of such termination if the Company initiates such termination or two (2) weeks following the date of
such termination, if the Service Provider initiates such termination but in no event later than the Expiration Date of such Option, as
set forth in the Option Agreement. If, after termination, the Option is not so exercised within the time specified herein, the Option
shall terminate, and the Shares covered by the unexercised portion of such Option shall revert to the Plan. Unless the Committee or the
Option Agreement provide otherwise, any Options which are not vested and exercisable at the date of such termination, shall terminate,
and the Shares covered by such unvested Option shall revert to the Plan.

 

		c)	Unless otherwise approved by the Committee or set forth in the Option Agreement, if an Optionee ceases
to be a Service Provider of the Company or any Affiliate thereof as a result of Optionee’s Disability or death, all Options granted
to the Optionee, which are vested and exercisable at the time of such termination, may, unless earlier terminated in accordance with the
Option Agreement, be exercised within six (6) months, following the Optionee’s termination, but in no event later than the Expiration
Date of such Option, as set forth in the Option Agreement. In the case of Optionee’s death, such Option may be exercised by the personal
representative of the Optionee’s estate or by the person or persons to whom the Option is transferred pursuant to the Optionee’s
will or the laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries of that Option. If, after termination,
the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by the unexercised
portion of such Option shall revert to the Plan. Unless the Committee or the Option Agreement provide otherwise, any Options which are
not vested and exercisable at the date of such termination, shall terminate and the Shares covered by such unvested Option shall revert
to the Plan.

 

		d)	Notwithstanding the above, if an Optionee ceases to be a Service Provider of the Company or any Affiliate
thereof for Cause, all outstanding Options granted to such Optionee (whether vested or not) shall, to the extent not theretofore exercised,
expire immediately upon the earlier of: (i) the date of such termination; or (ii) the time of delivery of the notice of termination for
Cause, unless otherwise determined by the Committee. The Shares covered by such expired Options shall revert to the Plan.

 

		e)	In addition and notwithstanding Sections 13(b) through 13(d) above, if after termination of relationship
as a Service Provider, Optionee does not comply in full with any of non- compete, non solicitation, confidentiality or any other requirement
of any agreement between the Optionee and the Company (or any Affiliate thereof engaging the Optionee), the Committee may, in its sole
discretion, refuse to allow the exercise of the Options.

 

    8

     

    

 

		f)	For the purpose of this Section 13, termination of relationship as a Service Provider shall be deemed
to be effective upon the date, which is designated by the Company (or any Affiliate thereof engaging the Optionee) as the last day of
the Optionee’s service with the Company or any Affiliate thereof.

 

		g)	For the purpose of this Section 13, a transfer of the Optionee from the service of the Company to any
Affiliate (and vise versa) or between Affiliates shall not be deemed a termination of relationship as a Service Provider, unless otherwise
determined by the Committee.

 

		13.	Adjustments, Liquidation and Corporate Transaction: Upon the occurrence of any of the following
described events, an Optionee’s right to purchase Shares under the Plan shall be adjusted as hereinafter provided.

 

		a)	Changes in Capitalization. The number and type of Shares which have been authorized for issuance
under the Plan but as to which no Option have yet been granted or which have been returned to the Plan upon cancellation or expiration
of an Option, and the number and type of Shares covered by each outstanding Option, as well as the Exercise Price per Share covered by
each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number or type of issued Shares resulting
from a stock split, reverse stock split, stock dividend, recapitalization, combination or reclassification of the Shares, or any other
increase or decrease in the number of issued Shares effected without receipt of consideration by the Company, in order to prevent diminution
or enlargement of the benefits or potential benefits intended to be made available under the Plan. The conversion of any convertible securities
of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made
by the Committee, in its sole discretion. The Company shall not be required to issue fractional Shares or other securities under the Plan
as a result of such adjustment and any fractional interest in a Share or other security that would otherwise be delivered upon the exercise
of an Option will be rounded, as detailed in Section 11(e) hereof.

 

		b)	Dissolution or Liquidation. In the event of dissolution or liquidation of the Company, the Company
shall have no obligation to notify the Optionees of such event and any Options that have not been previously exercised will terminate
immediately prior to such dissolution or liquidation. Notwithstanding the above, in the event of a voluntary liquidation of the Company,
which is not within the frame of a Corporate Transaction, the Committee shall notify each Optionee as soon as practicable prior to the
effective date of such proposed transaction, and any Options that have not been previously exercised will terminate immediately prior
to such proposed liquidation.

 

		c)	Corporate Transaction. In the event of a Corporate Transaction, each outstanding Option shall be
treated as the Committee determines, including, without limitation, that each Option may (i) be assumed or substituted for an equivalent
option by the successor corporation or a parent or subsidiary of the successor corporation. In the case of such assumption or substitution
of Options, appropriate adjustments shall be made in the number and type of Shares covered by each outstanding Option, as well as the
Exercise Price per Share covered by each such outstanding Option, and all other terms and conditions of the Options, such as the vesting
dates, shall remain in force; or (ii) be terminated in exchange for a cash payment (if any) equal to the excess of the Fair Market Value
of the Shares subject to such Option (either to the extent then exercisable or, at the discretion of the Committee, the Option being made
fully exercisable for purposes of this Section 14(c)) over the Exercise Price thereof.

 

For the purposes of
this Section 14(c), the Option shall be considered assumed if, following the Corporate Transaction, the Option confers the right to purchase
or receive, for each Share covered by the Option immediately prior to the Corporate Transaction, the consideration, if any, (whether stock,
cash, or other securities or property) received in the Corporate Transaction by holders of Ordinary Shares for each Ordinary Share held
on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Ordinary Shares); provided, however, that if such consideration received in the Corporate Transaction
is not solely in securities of the successor corporation or its Parent or Subsidiary, the Committee may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the Option, for each Ordinary Share subject to the Option,
to be solely in securities of the successor corporation or its Parent or Subsidiary equal in fair market value to the per share consideration
received by holders of Ordinary Shares in the Corporate Transaction.

 

Unless the Committee
or the Option Agreement provide otherwise, in the event that the Option is not assumed, substituted or exchanged during and/or immediately
following the Corporate Transaction, the Option shall terminate as of the date of the closing of the Corporate Transaction and the Committee
shall notify the Optionee in writing or electronically of such termination.

 

    9

     

    

 

		d)	The Committee shall not be required to treat all Options similarly in the transaction.1Dividend
Distribution. In the event the Company shall distribute a cash, in kind, or similar dividend with respect to all of its issued and
outstanding ordinary shares, and the record date for determining the right to receive such dividends is before the Expiration Date of
exercise such Options, then the Option Exercise Price payable upon exercise of each outstanding Option shall be adjusted and reduced by
the amount of such dividend payment per Share; provided, however, that no dividends or Additional Rights may be issued with respect to
any unvested Options2.

 

		e)	Issuance of Rights. In the event that the Company shall offer to its shareholders rights to purchase
any securities, by the method of rights offering, than the Exercise Price shall not be adjusted. However, the amount of shares issuable
upon the exercise of Options not yet exercised prior to the effective date with respect to the right to purchase rights under the rights
offering (in this Section 14(e) – the “Effective Date”), shall be adjusted according to the benefit component of the rights,
if any, as it is expressed in the ratio between the price of an ordinary share on the end of the Effective Date and the price of an ordinary
share as a result of such rights offering, as recorded by the stock exchange, as applicable (ex rights rate).

 

		f)	Upon each adjustment of the Exercise Price and/or number of Shares, the Company shall notify Holder within
a reasonable time setting forth the adjustments to the Exercise Price, class and/or number of Shares.

 

		14.	Limited Transferability and Restrictions on Sale of Options/Shares:

 

		a)	No Option may be sold, pledged, assigned, hypothecated or transferred other than by will or by the laws
of descent and distribution, and may be exercised during the lifetime of the Optionee, only by the Optionee. The terms of the Plan and
the Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. Any attempted
sale, transfer, assignment, pledge, hypothecation or other disposition of any Option or of any rights granted thereunder contrary to the
provisions of this Plan shall be null and void.

 

		b)	Without derogating from the provisions of Section 15(a) above, with regard to Section 102 Trustee Option
and the Shares issued upon exercise of such Options, as long as such Options and/or Shares are held by the Trustee on behalf of the Optionee,
all rights of the Optionee with respect thereto are personal and cannot be transferred, assigned, pledged or mortgaged, other than by
will or by the laws of descent and distribution.

 

		c)	Shares acquired upon exercise of an Option shall be subject to such restrictions on transfer and/or sale
as are generally applicable to Ordinary Shares of the Company, including but not limited to (i) restrictions detailed in the Company’s
incorporation documents, as may be amended from time to time; and (ii) restrictions detailed in any shareholders agreements (as applicable
to other shareholders of Ordinary Shares of the Company), as amended from time to time, regardless of whether or not the Optionee is a
party to such agreements.

 

		d)	In the event the Shares shall be registered for trading in any public market, the Committee may impose
certain limitations on the Optionee’s right to sell the Shares (including a lock-up period) as may be requested by the Company’s
underwriters or as the Committee may, in its absolute discretion, determine to be necessary or advisable, and Optionee shall unconditionally
agree and accept any such limitations.

 

    10

     

    

 

		15.	Conditions Upon Issuance of Shares:

 

		a)	Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and
the issuance and delivery of such Shares shall comply with applicable laws and shall be further subject to the approval of counsel for
the Company with respect to such compliance. Without derogating from the generality of the foregoing, the Company shall not be required
to issue or deliver any Shares (or any certificate or certificates for such Shares) purchased upon exercise of any Option (or portion
thereof) prior to the completion of any registration or other qualification of such Shares, if so required under any applicable law and/or
under the rulings or regulations of any governmental regulatory body which the Committee shall, in its absolute discretion, determine
to be necessary or advisable.

 

		b)	As a condition to the exercise of an Option, the Committee may require the Optionee exercising such Option
to represent and warrant at the time of such exercise, if, in the opinion of counsel for the Company such representation is required in
order to comply with any registration exemption requirement, that (i) the Shares are being purchased only for investment and without any
present intention to sell or distribute such Shares; and (ii) the Optionee shall not sell, transfer or otherwise dispose of any of the
Shares so purchased by him, except in compliance with the applicable securities laws, and the rules and regulations thereunder. Furthermore,
the Company shall have the authority to endorse upon the certificate or certificates representing the Shares such legends referring to
the foregoing restrictions, and any other applicable restriction, as it may deem appropriate.

 

		16.	Tax Consequences:

 

		a)	Any tax consequences arising from the grant or exercise of any Option, from the payment for Shares covered
thereby, from the sale, transfer or disposition of such Shares or from any other event or act (of the Optionee, the Company or any Affiliate
of the Company or the Trustee (if applicable)) hereunder, shall be borne solely by the Optionee. The Company or any Affiliate or the Trustee
(if applicable) shall withhold taxes according to the requirements under the applicable laws, and it may take steps as it may deem necessary
for withholding all due taxes, including, but not limited to (i) to the extent permitted by applicable laws, deducting the amount so required
to be withheld from any other amount then or thereafter payable to an Optionee, and/or (ii) requiring an Optionee to pay to the Company
or any Affiliate or to the Trustee (as the case may be) the amount so required to be withheld as a condition for the issuance, delivery,
distribution or release of any Shares. Furthermore, such Optionee shall agree to indemnify the Company, any Affiliate that engages the
Optionee and the Trustee, if applicable, 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. Except as otherwise required by applicable laws, the Company shall not be required to release any Share
certificate to an Optionee until all required payments have been fully made.

 

		b)	Without derogating from the definition of Fair Market Value in Section 2 above, and solely for the purpose
of determining the tax liability with respect to the grant of Capital Gain Option Through a Trustee pursuant to Section 102, in the event
the Shares of the Company are listed for trade on any established stock exchange or national market system or in the event the Shares
of the Company will be registered for trade within ninety (90) days following the date of grant of such Options, the Fair Market Value
of the Shares on the date of grant shall be equal to the average value of the Company’s Shares on the thirty (30) trading days preceding
the date of grant or on the thirty (30) trading days following the date of registration for trade, as the case may be, all in accordance
with the provisions of Section 102(b)(3) of the Tax Ordinance.

 

		c)	With regard to Section 102 Non-Trustee Option, in the event an Optionee shall cease to be employed by
or, if applicable, cease to render his services to the Company or any Affiliate, for any reason, the Optionee shall be obligated to provide
the Company and/or its Affiliate with a security or guarantee, in the degree and manner satisfactory to them, to cover any future tax
obligation resulting from the disposition of the Options and/or the Shares acquired thereunder.

 

		d)	With regard to Section 102 Trustee Options, the provisions of the Plan and the Option Agreement shall
be subject to the provisions of Section 102 and the tax officer’s approval, which shall be deemed an integral part of the Plan and the
Option Agreement. To the extent that Section 102 and/or the tax officer’s approval require the Plan and/or the Option Agreement to contain
specified provisions in order to qualify the Options for preferential tax treatment, such provisions shall be deemed to be stated herein
and/or in the Option Agreement, as applicable, and to be binding upon the Company, any Affiliate and the Optionee.

 

		17.	Term, Amendment and Termination of the Plan:

 

		a)	The Plan shall become effective upon the later of: (i) its adoption by the Board; or (ii) its approval
by the Company’s shareholders, but only if such shareholders’ approval is required under applicable laws.

 

    11

     

    

 

		18.	The Committee, at any time and from time to time, may terminate, suspend or amend the Plan. The Committee
shall obtain approval from the Company’s shareholders of any Plan amendment to the extent necessary to comply with applicable laws.
Other than in respect of a Corporate Transaction (in which case, the provisions of Section 14(c) above shall govern), no amendment, suspension
or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Committee,
which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Committee’s
ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination.

 

		19.	Participation by Optionees Outside Israel. Notwithstanding anything in the Plan to the contrary, with
respect to any employee who is resident outside of Israel, the Committee may, in its sole discretion, amend the terms of the Plan in order
to conform such terms with the requirements of local law or to meet the objectives of the Plan. The Committee may, where appropriate,
establish one or more sub-plans for this purpose.

 

		20.	Inability to Obtain Authority: The inability of the Company to obtain authority from any regulatory
body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of
any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such
requisite authority shall not have been obtained.

 

		21.	Continuance of Engagement: Neither the Plan nor any Option granted hereunder shall impose any obligation
on the Company or its Affiliates, to continue its relationship with an Optionee as a Service Provider, and nothing in the Plan, in any
Option Agreement or in any Option granted pursuant thereto shall confer upon any Optionee any right with respect to continuing the Optionee’s
relationship as a Service Provider with the Company or its Affiliate nor shall it interfere in any way with his right or the Company’s
or its Affiliate’s right to terminate such relationship at any time, with or without Cause, and with or without notice.

 

		22.	No Repricing. The terms of any outstanding Option may not be amended, and action may not otherwise
be taken, in a manner to achieve a Repricing; provided, however, that nothing herein shall prevent the Committee from taking any action
provided for in Section 14 above. For purposes of this Section 23, a “Repricing” shall mean (i) reducing the exercise
price of an Option, (ii) cancel outstanding Options in exchange for cash, other equity awards or Options with an Exercise Price that is
less than the Exercise Price of the original Options, (iii) cancel outstanding Options with an Exercise Price that is less than the then
current Fair Market Value of a Share in exchange for other equity awards, cash or other property; or (iv) otherwise effect a transaction
that would be considered a “repricing” for purposes of the stockholder approval rules of the applicable securities exchange
or inter-dealer quotation system on which the Shares are listed or quoted without shareholder approval.

 

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

 

		24.	Governing Law and Jurisdiction: This Plan and all instruments issued thereunder or in connection
therewith shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to
the principles of conflict of laws thereof. Any dispute arising out of this Plan and all instruments issued thereunder or in connection
therewith shall be resolved exclusively by the appropriate court in the State of Israel.

 

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

 

		26.	Severability: If any term or other provision of this Plan is determined to be invalid, illegal
or incapable of being enforced by any applicable laws, the invalidity of such term or provision of the Plan shall not affect the validity
or enforceability of any other provision of the Plan, which shall remain in full force and effect.

 

*****

 

 

12

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