Document:

Exhibit 10.1

 

Brenmiller Energy Ltd.

(the “Company”)

 

Indemnification Agreement

 

	1.	General
	 	 

		1.1	The Company’s Board of Directors and Shareholders have resolved and confirmed that the Company will exempt
its serving Officers and Directors and those that, from time to time, shall serve the Company, its subsidiaries and/or associated companies
and/or pursuant to a request from the Company and/or its subsidiary and/or associated company, serve in any other company whatsoever as
an Officer within the meaning of the Companies Law, 5759 – 1999 (“the Law”), including as internal legal consultants,
the Company Secretary, Comptroller and Internal Auditor (including the Controlling Shareholder or his successors) (and, together with
the Company’s Directors, “Officers”), from liability for damage in view of a breach of the duty of care vis-à-vis
the Company and that the Company will give the Directors and Officers, as they are defined above, a commitment to indemnify them for any
debt or expense imposed on them for any action that they executed prior to this Indemnification Agreement, or that they shall execute
hereafter by virtue of being Directors and Officers, as aforementioned, all as detailed in this Indemnification Agreement.
	 	 	 

		1.2	The terms in this Indemnification Agreement, which are not defined herein, shall have the meaning and
interpretation given to them in the Law, unless the context necessitates otherwise.
	 	 	 

	2.	Exemption of Liability in view of a breach of the Duty of Care vis-à-vis the Company
	 	 

		2.1	The Company hereby indemnifies you from any liability vis-à-vis it, in view of any damage caused
and/or that shall be caused to it, whether directly or indirectly, if caused and/or shall be caused in view of a breach of the duty of
care vis-à-vis it, in an action that was executed by you in good faith by virtue of you being an Officer in the Company and/or
its subsidiary and/or associated company and/or pursuant to the request of the Company and/or its subsidiary and/or associated company
and any other Officer whatsoever in the Company.
	 	 	 

		2.2	Despite the aforementioned, indemnification shall not be valid in view of any of the following:
	 	 	 

		2.2.1	A breach of the duty of loyalty.
	 	 	 

		2.2.2	A breach of the duty of care relating to distribution.
	 	 	 

		2.2.3	A breach of the duty of care executed intentionally or recklessly,
excluding if executed only negligently.
	 	 	 

		2.2.4	An action executed intentionally for yielding improper personal
gain.
	 	 	 

		2.2.5	If you are charged with a fine or penalty.
	 	 	 

		2.2.6	The indemnification in view of a breach of the duty of care
shall not apply in any litigation of a “counterclaim” of the Company against you in response to your suit against the Company,
unless your suit is for preserving rights of protection in the Labor Laws originating in the law or in a personal work agreement between
you and the Company.
	 	 	 

		2.3	If, in the future, the Law applicable to the Company is changed so that it will enable the Company to
extend the scope of this Exemption, which the Company is entitled to grant you, then the change in the Law shall be deemed as applicable
to you as well and this Indemnification Agreement will be deemed to have been amended automatically (without any need for any action or
additional resolution), as if it includes any change as aforementioned to the degree of the maximum permitted by law.
	 	 	 

		2.4	The provisions in this Exemption section contains nothing to derogate from the following indemnification
commitments of the Company.

 

     

     

    

 

	3.	Indemnification Commitment
	 	 

The Company hereby agrees, vis-à-vis
you, to indemnify you in view of any debt or expense, as detailed in Section 4 below, that shall be imposed on you1 and/or
that you shall expend during the actions that you executed, including any resolution and/or default or any implied derivative of it,
including actions prior to the date of this Indemnification Agreement by virtue of you being an Officer in the Company and/or your tenure
on behalf of the Company, or pursuant to its request, as an Officer in another company, in which the Company holds shares, directly or
indirectly, or in which the Company has any interest whatsoever (“another company”), which are related, directly or
indirectly, to one or more of the events detailed in this Indemnification Agreement, or any part of them or relating to them, whether
directly or indirectly, subject to the instructions and restrictions detailed in this Indemnification Agreement.

	 	 
	4.	The Debts and Expenses to which the Indemnification shall Apply
	 	 

		4.1	The indemnification shall apply to the following debts and expenses:
	 	 	 

		4.1.1	A financial debt imposed on you in favor of another person
pursuant to a verdict, including a verdict given in a compromise or an arbitration agreement decision authorized by a court, provided
that the maximum indemnification sum shall not exceed the sum in Section 5.1 below;
	 	 	 

		4.1.2	Reasonable litigation expenses, including legal fees, that
you shall expend in view of an investigation or proceeding conducted against you by a competent authority to conduct an investigation
or proceeding and, which ended without issuing an indictment against you and without any financial penalty being imposed on you as an
alternative to criminal proceedings, or that ended without submitting an indictment against you, but a financial penalty was imposed
as an alternative to criminal proceedings in an offense that does not require proof of criminal intent or in relation to financial sanctions.
	 	 	 

In this section – “the termination
of proceedings without submitting an indictment in the matter in which a criminal investigation was initiated” and “a
financial penalty as an alternative to criminal proceedings” – shall be afforded their meaning in Section 260 of the Law
as shall be amended from time to time.

	 	 	 
		4.1.3	Reasonable litigation expenses, including legal fees that
you shall expend or shall be indebted with by a court in litigation submitted against you by the Company and/or by a subsidiary and/or
any other company and/or by any other person (including in the instance of a claim submitted against an Officer by way of a derivative
claim), or in criminal proceedings from which you were acquitted or in an indictment in which you were convicted of an offense that does
not require proof of criminal intent or any other expenses that shall be established in the Law.
	 	 	 

In this section: “another person”
– including in the event of a claim submitted against you by way of a derivative claim.

	 	 	 
		4.1.4	Payment to a victim of a breach imposed on you in relation to administrative proceedings as provided in
Section 52ND(a)(1)(a) of the Securities Law, 5728 – 1968, as amended from time to time (“Securities Law”).
	 	 	 

		4.1.5	Expenses that you shall expend relating to proceedings conducted in your matter pursuant to Part H3 (Imposing
Financial Sanctions by the Authority), Part H4 (Imposing Administrative Enforcement Means by the Enforcement Committee) or Part I1 (Arrangement
for Abstaining from Adopting Proceedings or Suspending Proceedings, Through a Conditional Settlement) of the Securities Law, as shall
be amended from time to time, including reasonable litigation expenses, which also includes legal fees.
	 	 	 

		4.1.6	Any debt or other expense for which indemnification of the liability of an Officer is permitted pursuant
to any law, as amended from time to time.

 

 

	1	If
                                            the services of an Officer shall be provided through a company under the control of the Officer
                                            and this company shall be indebted with an indemnifiable debt or expense under this Indemnification
                                            Agreement, for the Officer’s tenure, the aforementioned Company shall be entitled to indemnification
                                            and the instructions in this Indemnification Agreement shall apply accordingly.

 

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		4.2	The indemnification, as aforementioned, shall not apply to an action that is:
	 	 	 

		4.2.1	A violation of the duty of loyalty vis-à-vis the Company,
unless you acted in good faith and had reasonable grounds to assume that the action would not prejudice the Company;
	 	 	 

		4.2.2	A violation of the duty of care that you executed intentionally
or recklessly, unless executed only negligently;
	 	 	 

		4.2.3	An action that was executed by you intentionally in order
to yield improper personal gain;
	 	 	 

		4.2.4	A fine, civil fine, financial sanction, or pecuniary penalty
imposed on you.
	 	 	 

		4.3	The Company will indemnify you and pay you the aforementioned
financial debts and expenses, which are not covered in the framework of Officers’ Insurance and that were not paid to you.
	 	 	 

		4.4	You shall not be entitled to indemnification in view of a financial debt or expense for which you received
indemnification or payment from the Company or from another or other persons.
	 	 	 

		4.5	On the day the event occurred for which you are likely to be entitled to indemnification pursuant to the
provisions in this Indemnification Agreement, from time to time, the Company will place, at your disposal, an advance on account of the
expenses that will be owing to you pursuant to this Indemnification Agreement. These sums will be estimated by it and, on the dates established
by it, for covering expenses as aforementioned. The Company will also place, at your disposal, guarantees or securities that you would
have to extend in the framework of the investigation or litigation or pursuant to interim decisions, including arbitration and for changing
any encumbrances that might be imposed on your assets. This, already prior to the commencement or before the termination of the investigation
or litigation, according to the matter, provided that the total sums of the guarantees and securities, as aforementioned, shall not exceed
the maximum indemnification sum.
	 	 	 

If, the Company does extend an advance at
your disposal, as aforementioned, and it becomes clear that you are not entitled to litigation expenses, on its first demand, you must
return the advance, as aforementioned, to the Company linked to the last known Israeli Consumer Price Index on the actual payment date
of the advance.

 

If, the Company does extend securities or
guarantees, as aforementioned, and it becomes clear that you are not entitled to indemnification for the action for which the guarantees
or securities were extended, the Company shall have grounds for annulling them and you must assist in annulling them to the extent that
you are required to do so by the Company and, should they or any of them have been exercised, on its first demand, you must refund the
sum that was exercised to the Company linked to the last known Israeli Consumer Price Index, on the actual payment date of the sum.

	 	 
	5.	The Maximum Indemnification Sum
	 	 

		5.1	The cumulative indemnification sum that will be paid by the Company to all the Officers pursuant to this
Indemnification Agreement shall be the higher of the total sum equivalent to twenty-five percent (25%) of the Company’s equity capital,
on neutralizing the provisions that were made for the indemnification, as aforementioned, pursuant to the Company’s last financial statements
(both annual and quarterly), which were approved and preceded by actual payment of the indemnification sum, and a sum of USD five (5)
million (“the maximum indemnification sum”).
	 	 	 

		5.2	For the avoidance of doubt, it must be clarified that, the maximum indemnification sum pursuant to this
Indemnification Agreement shall apply beyond the sum to be paid (if any should be paid) in the framework of insurance and/or indemnification
of any other person besides the Company. Should the total of all the indemnification sums that the Company is required to pay for the
provisions in Section 4 above, exceed the maximum indemnification sum or the balance of the maximum indemnification sum (as shall be at
the time), the maximum indemnification sum, or its balance, according to the matter, must be divided amongst the Officers, who shall be
entitled to indemnification, in a manner that the indemnification sum that each Officer actually receives, shall be calculated pursuant
to the proportion between the indemnification sum owing to each of the Officers and the indemnification sum owing to all the Officers
cumulatively.
	 	 	 

		5.3	In the event that an Officer receives indemnification from an insurer pursuant to an Officers’ Insurance
Policy, for the matter that is the subject of the indemnification, indemnification will be given at the level of the difference between
the sum of the financial debt imposed on the Officer and the litigation expenses and the sum that he received from insurer for that matter,
provided that the indemnification sum to which the Company is committed shall not exceed the total indemnification sum. In the event that
the Company should receive indemnification from the insurer, as aforementioned, the Company’s indebtedness pursuant to this Indemnification
Agreement shall not be reduced and the total indemnification sum could exceed the sums received from the insurance company.

 

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	6.	The Events to which the Indemnification Applies
	 	 

The indemnification commitment, as provided
in Section 4.1.1 above, will be restricted to the events detailed below (which, in the opinion of the Company’s Board of Directors are
expected in view of the Company’s operations in practice at this date):

 

		6.1	An issue of securities and/or registering them for trading on the Israeli Stock Exchange or other Stock
Exchanges outside of Israel, including, but without derogating from the aforementioned generality, public securities offer pursuant to
a prospectus, a private offer, a sales offer, issue of bonus shares, or securities offer in any other manner whatsoever.
	 	 	 

		6.2	An event deriving from the essence of the Company being a public company or deriving from the fact that
its shares were offered to the public or deriving from the fact that the Company’s shares are traded on the Israeli Stock Exchange or
other Stock Exchanges outside of Israel.
	 	 	 

		6.3	A transaction, the meaning of which is in Section 1 of the Law, which includes, negotiations for engaging
in a transaction or action, transfer, sale, lease, acquisition or encumbrance of assets or liabilities (including securities), or a right
has been given or received in each of these, receipt of credit and extending guarantees and any action, directly or indirectly involved
in the transaction as aforementioned, including furnishing information and documents.
	 	 	 

		6.4	Decisions and/or actions relating to approving transactions with interested parties pursuant to the definition
of these transactions in the First Schedule of the Third Part of the Law.
	 	 	 

		6.5	A report or information submitted pursuant to the Companies Law, Securities Law, Energy Law, Taxation
Law, Restraints on Trains Law, Labor Law or any other law that obligates the Company to a report or notice, including the rules or stipulations
conventional on or off the Israeli Stock Exchange, or pursuant to the law of another country, which arranges similar matters and/or abstaining
from submitting a report or notice, as aforementioned.
	 	 	 

		6.6	Adoption of the findings of external professional opinions for the purposes of issuing an immediate report,
prospectus, financial statements, or any other disclosure document pursuant to the Securities Law.
	 	 	 

		6.7	A debate and reaching decisions and providing a report and disclosure in the Company’s reports, to the
extent that these will be given pursuant to the Securities Law, including providing an estimate regarding the effectiveness of the Internal
Audit and other subjects included in the Company’s Board of Directors’ Report, as well as providing affidavits and references to the financial
statements.
	 	 	 

		6.8	Preparing, editing, approving, and signing the financial statements, including adapting decisions regarding
the activation of accounting rules and restatement of the financial statements.
	 	 	 

		6.9	Adaptation of the financial report pursuant to the International Financial Reporting Standards (IFRS)
or any financial reporting standards that are custom at the Company or pursuant to American Generally Accepted Accounting Principles (US
GAAP) or any reporting standards that are conventional at the Company’s subsidiaries and any action involved in this.
	 	 	 

		6.10	Events relating to executing investments by the Company in any corporation whatsoever.

 

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		6.11	A decision regarding the distribution, as defined in the Law, including a distribution with court approval.
	 	 	 

		6.12	A change in the Company’s structure, a change in the Company’s ownership, the reorganization of the Company,
the dissolution of the Company, the sale of the Company’s assets or businesses (all or some), or any resolution regarding them,
including, but without derogating from the aforementioned generality, a merger, split, change in the Company’s equity, establishing and
dissolving or selling subsidiaries, and allocation or distribution.
	 	 	 

		6.13	Consolidation, change or amendment of the arrangements between the Company and the holders of its securities
and/or the banks and/or creditors of the Company or its associated corporations.
	 	 	 

		6.14	Actions that relate to issuing licenses, permits or authorizations, including authorizations and/or exemptions
on the subject of trade restraints.
	 	 	 

		6.15	Participation in and preparation of tenders.
	 	 	 

		6.16	Expression, statement, including expressing an attitude or opinion, voting and/or abstaining from voting,
executed in good faith by an Officer during and by virtue of his function, including in negotiations and engagements with suppliers or
customers, and in the framework of meetings with management, the Board of Directors or any of its committees.
	 	 	 

		6.17	Actions in contravention of the Company’s Articles of Association.
	 	 	 

		6.18	An action or decision relating to employee-employer relationships, including negotiations for, engagement
in and implementation of personal or collective work agreements, bonuses for employees, including securities allocations to employees.
	 	 	 

		6.19	An action or decision regarding work safety and hygiene and/or work conditions.
	 	 	 

		6.20	Negotiations, engagement in and activation of insurance policies.
	 	 	 

		6.21	Consolidating work programs, including pricing, marketing, distribution, instructions for employees, customers
and suppliers and cooperation with competitors.
	 	 	 

		6.22	Decisions and/or actions regarding environmental quality and public health, including hazardous materials.
	 	 	 

		6.23	Decisions and/or actions regarding the Consumer Protection Law, 5741 – 1981 and/or ordinances and/or
regulations by virtue of it.
	 	 	 

		6.24	Actions relating to the Company’s intellectual property and its protection, including registration or
enforcement of intellectual property rights and defense in claims relating to them.
	 	 	 

		6.25	Violation of intellectual property rights by a third-party, including, but not limited to, patents, models,
cultivation rights, trademarks and copyrights etc.

 

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		6.26	Negotiations, signing and performing contracts of any kind and type with suppliers, distributors, agents,
concessionaires, marketers, importers, exporters, customers etc. of the products or services that are marketed and/or sold and/or supplied
by the Company or that it uses;
	 	 	 

		6.27	Negotiations, signing and performing agreements with manpower contractors, service contractors, building
contractors, renovation contractors etc.
	 	 	 

		6.28	Reports, notices and submitting applications to the state and other authorities.
	 	 	 

		6.29	Investigations of the state authorities.
	 	 	 

		6.30	Managing the bank accounts in which the Company holds at the banks and executing actions in the aforementioned
bank accounts, including resale negotiations in securities and lending and borrowing securities, loans and credit facilities, debit cards,
bank guarantees, letters of credit, investment consultation agreements.
	 	 	 

		6.31	Performing personal guarantees that an Officer extended to the Company, as a guarantee for commitments
and/or for the Company’s affidavits.
	 	 	 

		6.32	Failure to conduct full proper inspection and/or appropriate proceedings in the Company’s investments,
which resulted in the full or partial loss of the investments and/or damage to the Company’s business and/or a violation of a commitment
vis-à-vis a third-party.
	 	 	 

		6.33	Events and actions relating to investments that the Company executes in various corporations, before or
after performing the investment, including for the purposes of engaging in a transaction, execution, development, follow-up and inspection
thereof.
	 	 	 

		6.34	A financial debt imposed on the Officer for actions in which he participated on behalf of the Company,
vis-à-vis various state institutions.
	 	 	 

		6.35	A financial debt imposed on an Officer for a claim by third parties against the Officer for a written
or oral deficient or misleading disclosure to existing and/or potential investors of the Company, including in the event of the Company’s
merger with another company.
	 	 	 

		6.36	Excess cover in the event of activating Officers Liability Insurance.
	 	 	 

		6.37	A breach of the provisions in any agreement whatsoever to which the Company is a Party.
	 	 	 

		6.38	An action contravening a tax liability of the Company and/or a subsidiary and/or any of the Shareholders.
	 	 	 

		6.39	Any event and/or action for which indemnification was possible pursuant to the Securities Law.
	 	 	 

		6.40	Any of the aforementioned types of events or actions, relating to the employment or tenure as an Officer
in subsidiaries and/or associated companies and/or other companies.

 

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All the provisions in Section 6 regarding
–

 

		-	Executing a certain action, shall be interpreted as also relating to any derivative of the action or nonperformance
or avoiding to perform that action, unless if the reference in a particular instruction does not tolerate such an interpretation.
	 	 	 

		-	Also relates to actions executed by you during your employment at the Company and/or during your tenure
as an Officer in the Company or in subsidiaries and/or associated companies of the Company.
	 	 	 

	7.	Conditions Relating to Indemnification
	 	 

The indemnification pursuant to this Indemnification
Agreement is subject to compliance with the conditions detailed below:

 

		7.1	As quickly as would be appropriate, after you have first been notified, you must inform the Company of
any investigation and any litigation opened against you and of any fear or threat that such investigation or litigation could be opened
against you and, without delay, you must send any document furnished to you in relation to those proceedings and any information brought
to your knowledge regarding those proceedings, to the Company or to anyone of whom it informs you.
	 	 	 

Furthermore, you must regularly inform the
Company of events where there is a fear of an investigation or litigation brought against you.

 

Failure to give notice of the indemnification
pursuant to the aforementioned, shall not release the Company from its commitment pursuant to this Indemnification Agreement, apart from
an event in which failure to furnish notice of the indemnification, as aforementioned, would nullify the Company’s ability to defend its
name against the claim.

 

		7.2	The Company shall be entitled to undertake treatment of the aforementioned investigation or litigation
and, is also entitled to appoint an attorney for handling such investigation or litigation on a case-by-case basis.

 

The Company and the attorney, as aforementioned,
shall, at their discretion, be entitled to act in the framework of the aforementioned treatment and they shall be entitled to compromise
in the aforementioned proceedings and to adopt any means in order to terminate the aforementioned proceedings. Pursuant to the Company’s
request, you must sign any document that would empower the Company or the aforementioned Attorney to handle those proceedings in your
name and to represent you in everything relating to such proceedings.

 

For the avoidance of doubt, it must be clarified
that, within the framework of criminal proceedings, unless with your consent that shall not be withheld for unreasonable reasons, the
Company and the attorney as aforementioned shall not be entitled to admit to any of the charges in your name or to agree to any plea bargain.
Within the framework of civil proceedings, the Company and attorney shall also not be entitled to admit, in your name (whether in the
frame of reference of a hearing before a Court or Arbitrator or in the framework of a compromise arrangement) to the existence of event
that is not covered by this Indemnification Agreement, unless with your consent that shall not be withheld unless for reasonable reasons.
If you object to being represented by the attorney appointed by the Company for reasonable reasons or, if you believe or, if the Company’s
attorney believes that a conflict of interests between you and the Company will be created, you shall be entitled to appoint an attorney
of your choice, provided that the legal fees to be paid to him will be approved by the Board of Directors and shareholders in the Company,
which would examine their feasibility and the instructions in this Indemnification Agreement shall apply to your expenses regarding that
appointment, as aforementioned.

 

		7.3	You must cooperate with the Company and the attorney, as aforementioned, and with the Company’s
directors and officers insurance provider, in any reasonable manner demanded of you by any of them as a part of their treatment relating
to that litigation, provided that the Company or insurer as aforementioned, covers all of the expenses involved in such litigation so
that you would not be required to pay or finance them yourself.
	 	 	 

		7.4	The Company shall not be obligated to indemnify you pursuant to this Indemnification Agreement for any
sum that shall be paid by you pursuant to a settlement or arbitration that the Company had not authorized in advance and in writing.

 

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		7.5	The Company shall not be obligated to indemnify you pursuant to this Indemnification Agreement for any
sum that you could have received in the framework of the Company’s Officers Insurance, or if the payment, as aforementioned is prevented
in view of your action.
	 	 	 

		7.6	The Company’s commitments to indemnify, pursuant to this Indemnification Agreement, are solely for you
and your rights pursuant to this Indemnification Agreement are nontransferable and cannot be assigned to anybody else, apart from as detailed
in Section 8 below.
	 	 	 

	8.	Incidence
	 	 

The exemption and indemnification pursuant
to this Indemnification Agreement shall apply once receiving the approval for the grant exemption and indemnification commitment by the
General Meeting of the Shareholders, for the aforementioned events, which also occurred prior to the aforementioned date. The indemnification
commitment pursuant to this Indemnification Agreement shall also be your right after termination of your tenure as an Officer in the Company
or an associated company, provided that the actions for which the indemnification commitment are given are executed or will be executed
during your tenure, the Company’s commitment, as aforementioned, shall also be the right of your estate, your heirs and your other substitutes
pursuant to the law.

 

	9.	Miscellaneous
	 	 

		9.1	The Company’s commitments pursuant to this Indemnification Agreement must be interpreted extensively and
in a manner that is intended for their existence, to the extent permissible by law, pursuant to the purpose for which they are intended.
In the event of any contradiction between any instructions whatsoever in this Indemnification Agreement and the provisions in the law,
which cannot be conditioned on, changed or added to, the provisions in the aforementioned laws shall prevail, but this shall not contain
anything to derogate from or diminish the validity of any of the other instructions in this Indemnification Agreement.
	 	 	 

		9.2	This Indemnification Agreement does not prejudice the Company’s right to retroactively decide on indemnification
pursuant to the provisions of any law.
	 	 	 

		9.3	At its sole discretion and at any time, the Company can annul its commitment to exempt and/or indemnify
or to reduce the maximum indemnification sum pursuant to it, or to reduce the events upon which the indemnification applies, whether regarding
all the Officers or only some of them, as long as the annulment or change, as aforementioned, relates to events that occur after the annulment
or change date and, provided that the Officer has been given prior written notice of this intention, at least thirty (30) days prior to
the date on which the decision shall come into force. For the avoidance of doubt, it must hereby be clarified that any decision, as aforementioned,
that could exacerbate the conditions in this Indemnification Agreement or annul it, shall not have any type of retroactive incidence whatsoever
and this Indemnification Agreement prior to its change or annulment, according to the matter, shall continue to apply and shall be in
force for all intents and purposes regarding any event that occurred prior to the change or annulment, even if the proceedings for it
were opened against the Officer after this Indemnification Agreement’s change or annulment.
	 	 	 

		9.4	For the avoidance of doubt, it is hereby established that this Indemnification Agreement does not constitute
as a contract in favor of any third party, including any insurer whatsoever and that, apart from the deductible, no insurer shall have
the right to demand the Company’s participation in the payment to which the insurer is obligated pursuant to the insurance agreement prepared
with it.
	 	 	 

		9.5	The applicable law to this Indemnification Agreement is the law of Israel and the competent Court in Tel
Aviv-Jaffa that has been given the exclusive power to hear any disputes deriving from the implementation of this Indemnification Agreement,
while negating the competence of the other Law Courts.

 

	Date:	 	 	 
		 	 	
    

    Brenmiller Energy Ltd.

 

 

8Exhibit 10.3

 

Brenmiller Energy Ltd.

 

Compensation Policy for Board Members and Officers

 

		1.	Preamble

 

		1.1.	General background

 

		1.1.1.	The Company’s compensation policy, set forth in this document, was formulated in the context of
internal proceedings based on the principles set forth hereinafter by the Board of Directors, Officers, Shareholders and any other person
or body that is deemed to act on behalf of the Company by law or according to the Articles of Association of the Company.

 

		1.1.2.	If and to the extent that pursuant to the approval of the compensation policy
in accordance with the provisions of the Companies Law (as defined below), laws, regulations or any orders brought pursuant to it thereof,
and exemptions in relation to any requirements or provisions, that are required to be included in
the compensation policy as of the date of its approval, shall be considered as included in the compensation policy notwithstanding any
other provision set forth herein, all subject to the approval of the Board of Directors.

 

		1.1.3.	The compensation policy does not form any contractual rights for any current and/or future board member
and/or other officer in the Company, and the rights and undertakings of any board member and/or officer shall be determined in an agreement
between him and the company, should such be signed.

 

		1.1.4.	The compensation policy is drafted in masculine narrative for convenience purposes only, however it applies
equally and indiscriminately to both men and women.

 

		1.1.5.	The compensation policy in no way detracts from the provisions of employment agreements and the terms
of office of the Company’s officers, which were approved prior to the approval of the compensation policy for the Company’s
officers. Notwithstanding the aforesaid, the existing agreements and terms as said shall be renewed and revised, and bonuses shall be
approved, based on existing agreements, taking into account the provisions of the compensation policy and/or in accordance with applicable
law.

 

		1.1.6.	The approval of the compensation policy shall be valid for five years from the date that Company
                                                                   became a public company in accordance with Regulation 1(c) of the Companies Regulations (Concessions in the Duty to Formulate a
                                                                   Compensation Policy) 5773 – 2013. Pursuant to this, the compensation policy will be updated as needed, and will be approved once in three years, in accordance
with the requirement of any law with respect to this matter.

 

The aforesaid in no way detracts from
the Board of Directors’ duty to review, from time to time, the compensation policy, and the need for its adaptation to the provisions
of Article 267b of the Companies Law if material changes occur in the circumstances that existed during its formulation or for other reasons.
In view of the aforesaid, the Board of Directors shall regularly track the implementation of the compensation policy for the Company’s
officers.

 

     

     

    

 

		1.2.	Definitions

 

		1.2.1.	“the Company” – Brenmiller Energy Ltd.

 

		1.2.2.	“the Subsidiary Companies” – as specified in the Company’s prospectus and
as updated from time to time in the Company’s reports to the stock exchange.

 

		1.2.3.	“the Group” – the Company and its subsidiaries.

 

		1.2.4.	“the Companies Law” – the Companies Law, 5759 – 1999.

 

		1.2.5.	“the Securities Law” – the Securities Law, 5728 – 1968.

 

		1.2.6.	“the Compensation Committee” – the compensation committee whose assembling is
in accordance with the requirements of the law. An audit committee that satisfies the prerequisites determined for this by law, may serve
also as a compensation committee.

 

		1.2.7.	“Officer” – as defined in Article 1 of the Companies Law.

 

		1.2.8.	“Terms of Office and Employment” – the terms of office and employment of an Officer
in the Company, including the granting of exemption, insurance, undertaking of indemnification or indemnification, a retirement grant,
and any other payment or undertaking of payment as said, conferred on account of the Officer’s office or employment in the Company.

 

		2.	Considerations, criteria and provisions for the examination and determination of the Officer’s
Terms of Office and Employment:

 

In the context of examining the terms
of office proposed to an Officer, the Company’s approving entities shall take into account, inter alia, the following considerations:

 

		2.1.	Binding considerations:

 

		2.1.1.	Promotion of the Company’s goals, work plan and policy with a long-term perspective;

 

		2.1.2.	Creating proper incentives for the Company’s Officers, taking into account, inter alia, the
Company’s risk management policy;

 

		2.1.3.	The Company’s size and the nature of its activity;

 

		2.1.4.	In respect of the Terms of Office and Employment that involve variable components – the Officer’s
contribution to the Company’s achievement of its goals and the maximization of its profits, all with a long-term perspective and
in accordance with the Officer’s role.

 

    2

     

    

 

		2.2.	Matters that must be considered:

 

		2.2.1.	The Officer’s qualifications, expertise, professional experience and accomplishments;

 

		2.2.2.	The Officer’s position, areas of responsibility, and previous salary agreements concluded therewith;

 

		2.2.3.	The ratio of the cost of the Officer’s
Terms of Office and Employment to the cost of the salaries1
of the rest of the employees of the Company and of the contract workers employed by the Company,2
and in particular, the ratio to the average salary and the median salary of such employees, and the effect of the disparity
between them on the labor relations in the Company;

 

Hereinafter is the maximum ratio of
the cost of an Officer’s Terms of Office and Employment to the median and average salary of the rest of the Company’s employees
and the contract workers employed by the Company:

 

	Position	 	Average ratio	 	Median ratio
	CEO	 	20	 	20
	Deputy CEO or VP or some other Officer that is not a director	 	20	 	20

 

The Company believes that these relations
are reasonable considering the Company’s size, the nature of its business activity, the expertise and skill required of the Company’s
Officers and the nature of its affairs, and considering that these relations do not negatively impact the labor relations in the Company.

 

		2.2.4.	Where the Terms of Office and Employment include variable components – the option to reduce the
variable components at the discretion of the Board of Directors, and the option to set a ceiling for the value of exercise of variable
equity components that are not settled in cash;

 

		2.2.5.	Where the Terms of Office and Employment include pension grants – the period of the Officer’s
office or employment, his Terms of Office and Employment during this period, the Company’s performance during said period, the Officer’s
contribution to the achievement of the Company’s goals, its profit maximization, and the circumstances of the pension.

 

		2.3.	Regarding changing variable components in the terms of office and employment:

 

		2.3.1.	Components in the terms of office and employment will be based on a perspective of long-term performance
, and based on measurable criteria ; however, the Company may determine that an immaterial part of such components or, where their total
amount does not exceed three months of salary per year – all of the aforesaid components, will be granted on the basis of immeasurable
criteria, in consideration of the Officer’s contribution to the Company; this sub-item shall not apply to an Officer that reports
directly to the Company’s CEO;

 

		2.3.2.	The ratio between the variable components and the fixed components, and the cap on the value of variable
components on their date of payment; however, regarding variable equity components not settled in cash – their cap on their value
on their date of grant;

 

		2.4.	As per the terms to be set forth by the compensation policy, any Officer commits to return

amounts that were paid to him as part of his Terms of Office and Employment , to the extent that it later found that such amounts were
paid on the basis of erroneous and resulted in a restatement in the Company’s financial statements;

 

		2.5.	A minimal holding or vesting period for variable equity components in the Terms of Office and Employment,
and pursuant to appropriate incentives with a long-term perspective;

 

		2.6.	A ceiling for pension grants.

 

 

		1	“Cost of salary” – any payment on account
of the employment, including the employer’s contributions, pension payment, car expenses, and any other benefit or payment.

		2	“Contract workers employed at the Company” –
employees of a manpower contractor of whom the Company is the actual employer, and employees of a service contractor employed to provide
service at the Company; in this regard, “manpower contractor,” “service contractor,” and “actual employer”
– shall all be defined in accordance with the Employment of Employees by Manpower Contractors Law 5766 – 1996.

 

    3

     

    

 

		3.	The roles of Officers in the Company to whom the compensation policy applies

 

The compensation policy applies to
the following Officers:

 

		3.1.	The Chairman of the Board of Directors.3

 

		3.2.	The Company’s CEO.4

 

		3.3.	The Deputy CEO or VP or any other Officer that is not a director;

 

		3.4.	A director.

 

A transition of the Company’s
Officers in any capacity (even if they are a controlling shareholder or a relative of his) from an employer-employee relationship to a
service-provision relationship and vice versa, without increasing the cost of the transaction for the Company as a result of the change
in the structure of the relationship, shall not require the approval of

 

the General Meeting of Shareholders
and may be approved by the Compensation Committee alone.

 

		4.	Compensation of the Officers in the Company

 

		i.	The Officers’ overall compensation may be compromised of several components:

 

		4.1.	Fixed base salary – this component is designed to compensate the Officer for the services
he renders the Group, and the time he invests in the performance of his role on an ongoing basis. The base salary takes into account the
Officer’s skills, the requirements of the position, the areas of his responsibility and the authority he bears.

 

		4.2.	Related terms – some are defined and set forth in applicable law (components such as pension
savings, compensation provisions, loss of work capacity insurance, days of leave, sick days, convalescence etc.), some arise from market
conditions or from the accepted practice in the work market relevant to the Company’s Officers (such as savings in the context of
a study fund) and some are intended to make up the fixed salary and to finance or refund expenses incurred by the Officer in fulfilling
his role (such as travel and cellphone expenses);

 

		4.3.	Variable compensation – intended to compensate the Officer for his accomplishments and contribution
to the achievement of the Group’s goals during the period in respect of which the variable compensation is paid. This component’s
significance in the overall compensation package varies from one Officer to another based on seniority and the nature of the compensation.

 

 

		3	As of now, Avraham Brenmiller, the Company’s controlling
shareholder, functions as the active Chairman of the Board of Directors and as the Company CEO, and the compensation paid thereto is
paid only on account of his office as CEO of the Company. To the extent that the Company appoints an inactive Chairman of the
Board of Directors, he shall be entitled to compensation in an amount up to double the amount paid to the rest of the board members who
are not a controlling shareholder or a relative of his, to whom compensation is paid in accordance with the provisions of the Companies
Regulations (Rules regarding Compensation and Expenses to an External Board Member), 5760 – 2000. To the extent that Avraham Brenmiller
stops serving in double capacity, and an active Chairman of the Board of Directors is appointed to the Company, the Company will take
measures to update this compensation policy accordingly. Therefore, the compensation to the active Chairman of the Board of Directors
will not be specified in this policy’s tables.

 

		4	See footnote 3 above.

 

    4

     

    

 

To ensure a correlation between the
compensation and the contribution of the Officer, the Compensation Committee and the Board of Directors will be presented with all the
components of the Officer’s compensation package when discussing the approval of each of the compensation components of an Officer.

 

The desirable range of the ratio between
the components of the overall compensation for a given year to the Officers in the Company is as follows:

 

	Position	 	
    Variable components (%)

    (Includes bonuses and capital compensation**)

	CEO*	 	An amount equal to up to 30 monthly salaries (base + expenses)
	Deputy CEO or VP or some other Officer that is not a director	 	
    For a VP – an amount equal to 30 monthly
    salaries (base + expenses)

    For other officers– an amount equal to 20
    monthly salaries (base + expenses)

 

		*	See footnote 3.

 

		***	To calculate the variable equity components, as stated in
the table above, the cumulative annual fair value of the equity compensation that will be granted to the Officers in the Company, on
the date of grant, and which will be valued on the basis of the overall economic value on the date it is granted, is divided equally
by the number of years to complete vesting.

 

		ii.	For the avoidance of doubt, the ceiling for the overall annual cost in terms of an employer’s cost
for all the compensation components (fixed and variable) for the Terms of Office and Employment of the Company CEO shall not exceed NIS
3m (“the Ceiling of the CEO’s costs”). Accordingly, to the extent that the CEO is entitled to variable compensation
that would cause the overall cost of his annual employment to exceed the Ceiling of the CEO’s costs, the amount of the variable
compensation will decrease in such a manner as to keep the overall cost within the Ceiling of the CEO’s costs. The content of this
paragraph supersedes any other provision in the compensation policy.

 

		5.	Components of Compensation

 

		5.1.	Base salary (fixed compensation)

 

		5.1.1.	Determining Officers’ fixed salary

 

The fixed salary for Officers shall
be determined during the negotiations held prior to the Officer signing his contract for his position at the company. The salary shall
be updated from time to time in accordance with the Company’s accepted practice, and shall be managed by the Company’s CEO
or whomever is appointed to this role vis a vis the Officer; the CEO may determine the fixed salary within a range that shall be defined
and approved in advance, based on the provisions set forth in this policy and subject to the provisions of the law. The level of the salary
determined, within such range, shall reflect the intended Officer’s qualifications and his suitability to the requirements of the
position he is intended to fill.

 

		5.1.1.1.	Internal comparison – disparities between Officers in the Group and between them and other
workers

 

Prior to determining/updating the salary
of a new Officer, the following factors shall be taken into account, as well as their projected effect on the work relations in the Group
at large and in its management:

 

		a.	The difference in salary between the Officer and other Officers in the Group;

 

		b.	The difference in salary between the Officer and the other employees in the Group;

 

		c.	If there are officials that hold similar roles in the Group – the difference between the salary
of the Officer and that of those that hold similar roles.

 

    5

     

    

 

		5.1.1.2.	The fixed monthly salary for Officers in the Company shall be within the range set forth hereinafter
(in terms of employer5 costs in NIS thousands):

 

	Position	 	Maximum
	CEO *	 	140
	Deputy CEO or VP or some other Officer that is not a director	 	75

 

		*	See footnote 3.

 

Notwithstanding the aforesaid, the range
specified in the above chart may differ by up to 10% in the case of an Officer that is not a CEO, provided that in such a case, said deviation
is brought before the Compensation Committee and the Board of Directors for approval prior to signing a binding agreement/binding addendum
to an agreement.

 

		5.1.1.3.	Principles of periodical review salary and updates

 

To the extent necessary and in accordance
with the discretion of the Company’s management, the salaries of Officers in the Company (or any thereof who are not a controlling
shareholder and/or his relative and/or the Chairman of the Board of Directors and the Company’s CEO) will be reviewed and updated,
and this update will be brought to the compensation committee for approval.

 

An immaterial change in the Terms of
Office and Employment of an Officer that answers to the CEO (who is not a controlling shareholder in the Company) within the limits set
in the compensation policy, will be approved by the Company’s CEO only, provided that his Terms of Office and Employment are in
line with the compensation policy. For purposes of this policy, “an immaterial change” shall be deemed up to 10% of the cumulative
total annual cost of the Officer during the period for which this compensation policy is in place, provided that it does not exceed the
ceilings set forth in this policy.

 

		5.2.	Annual bonus (variable compensation)

 

The Officers in the Company may be
entitled to an annual bonus in accordance with a bonus plan which shall be brought before the Compensation Committee and the Board of
Directors for approval (“the Bonus Plan”).

 

		5.2.1.	Eligibility

 

Where the minimum threshold for distribution
of the annual bonus is not achieved, an annual bonus will not be distributed to the Officers.

 

 

		5	The fixed salary, for purposes of this table, was calculated
in terms of employer costs (and in the case of an Officer that receives the compensation as management fees – the full amount of
the fixed management fees), and it therefore includes also the related terms as specified in Article 5.4 hereinafter.

 

    6

     

    

 

Notwithstanding the aforesaid, the
Board of Directors are entitled to approve, in exceptional cases, pursuant to the recommendation of the Company’s CEO, the granting
of a partial bonus despite the minimum threshold’s not being achieved, at a maximum amount of 3 months’ salary. The aforesaid
shall apply in circumstances in which, in view of the Officer’s efforts and his considerable dedication to the role over the past
year, it is decided that the Officer should be conferred the bonus in the context of officer compensation, despite the minimum threshold’s
not being achieved, in order to incentivize him and compensate him for his investment in the Company.

 

		5.2.2.	The Bonus Plan will include conditions for payment of the bonus in whole or in part:

 

The bonus paid to the Officers shall
be paid in accordance with the Group’s performance over the past year and will be derived from the Company’s business and
financial performance and/or the profitability level it achieved and/or the scope of sales it made and/or the Officers’ personal
contributions to these achievements and/or from any other one of the following factors, as defined by the Board of Directors: sales; gross
profit; operating profit; profit before tax; profit before tax and deductions (EBIDTA); net profit; meeting budget targets (sales and/or
profitability); Return on Equity; all either in respect of the Company as a whole or in the context of the Group’s activity. In
any event, the bonus shall not exceed the amount stated below in respect of the Officers in the Company:

 

	Position	 	
    Maximum annual bonus

    (In NIS thousands, in terms of employer costs)

	CEO	 	2,5006
	Deputy CEO or VP or any other Officer (that is not a director)	 	
    1,000 (for Deputy CEO)

    600 (for other Officer)

 

 

		5.2.3.	Qualitative factors

 

The qualitative factors in accordance
with which the bonus granted to an Officer is calculated, and their relative significance, includes group factors and in respect of some
of the Officers and individual factors. The goals for the group factors will be set for a period of at least one year. Moreover, the qualitative
factors will include measurable components directly influenced by the activity of each Officer or the activity of the unit that answers
to such Officer, and will include, inter alia, the performance of the organizational unit to which the Officer belongs and his
personal performance on the level of business, operation and management. Each officer should have set a maximum of five measurable objectives.

 

 

		6	Subject to Article 4ii above.

 

    7

     

    

 

The qualitative factors may be, for
example:

 

		a.	Achievement of milestones in significant projects and/or in the development, licensing and planning proceedings
of significant projects;

 

		b.	Contribution to the achievement of strategic goals in the Officer’s area of operation;

 

		c.	Signing agreements and transactions in the Company’s area of operation, on the basis of indicators
and of a scope which shall be defined annually;

 

		d.	Achievement of regulatory goals and goals related to the Company;

 

		e.	Contribution to the signing of financing agreements such as senior debt and/or debt transactions, etc.,
for the establishment of projects, investment in existing projects and project development;

 

		f.	Achievement of savings goals in project budgets, operation expenses, holding and development expenses,
etc.

 

		5.2.4.	Quantitative factors

 

As long as it is not decided otherwise
by the authorized Board of Directors, Officers, Shareholders and any other person or body that is deemed to act on behalf of the Company
by law or according to the Articles of Association of the Company, hereinafter is a list of the quantitative factors that shall apply
to the measurable bonuses for the Officers in the company:

 

		a.	CEO – the bonus amount will be derived from the Company’s annual consolidated
profit before tax (the “Annual Profit”). The Compensation Committee and the Board of Directors (and the General Meeting
of Shareholders – to the extent that this pertains to an Officer who is a controlling shareholder or a relative of his) will set
a minimum annual threshold below which he shall not be entitled to any bonus, and they shall also be entitled to set a sliding-scale threshold.
To the extent that the Annual Profit is beyond the threshold set (including in the event that a sliding-scale threshold is set), the CEO
shall be entitled to a bonus of up to 5% of the Annual Profit and no more than the ceiling detailed in the table above. Alternatively,
the Compensation Committee and the Board of Directors shall be entitled to set other measurable factors for the compensation policy, of
the factors specified in Article 5.5.5, including percentage of sales, percentage of EBITDA, etc. and in such an event, the bonus will
be derived from that factor selected or the combination of several factors. In the event that a bonus is paid from Annual Profit, the
Compensation Committee and the Board of Directors will be given the discretion to eliminate from the – for purposes of calculating
whether the bonus threshold is met and/or calculating the bonus – specific income and/or non-recurring profit that is not part of
the Company’s usual course of business, so that the

 

bonus amount may be lower than its amount
without said elimination.

 

Moreover, the CEO may be entitled to
a discretionary bonus, at a maximum amount of 3 months base salary at one year, with the approval of the Company’s General Meeting
of Shareholders (to the extent this relates to an Officer that is not a controlling shareholder).

 

For the avoidance of doubt, the amount
of the bonus, including its immeasurable components, shall not exceed, in any event, the maximum bonus to which the Company CEO is entitled,
as specified in the table above.

 

		b.	Deputy CEO, VP or any other Officer (that is not a director) – the bonus amount will
be derived from the Company’s Annual Profit. The Company’s authorized Board of Directors, Officers, Shareholders and any other
person or body that is deemed to act on behalf of the Company by law or according to the Articles of Association will set a minimum annual
threshold below which he shall not be entitled to any bonus, and they shall also be entitled to set a sliding-scale threshold. To the
extent that the Annual Profit is beyond the threshold set (including in the case where a sliding-scale threshold is set), the Officer
shall be entitled to a bonus of up to 1% of the Annual Profit which shall not exceed the ceiling specified in the table above. Alternatively,
the Compensation Committee and the Board of Directors shall be entitled to set other measurable factor, of the factors specified in Article
5.2.2 of the compensation policy, including percentage of sales, percentage of gross profit, percentage of EBITDA etc., and in such a
case, the bonus will be derived from the factor selected or the combination of several factors. Where a bonus is paid from the Annual
Profit, the Compensation Committee and the Board of Directors shall be conferred the discretion to eliminate from the profit, for purposes
of calculating whether the bonus threshold is met and/or calculating the bonus, specific income and/or non-recurring profit that is not
part of the Company’s ordinary course of business, so that the bonus amount may be lower than its amount without said elimination.

 

    8

     

    

 

Notwithstanding the aforesaid, it is
clarified that the bonus amount may be based, in full, on immeasurable qualitative indicators.

 

It is clarified that the amount of the
bonus, including its immeasurable component, shall not exceed, in any event, the maximum bonus amount to which the Deputy CEO or VP or
some other Officer (that is not a director) is entitled, as specified in the table above. This applies as long as it is not decided otherwise
by the authorized Board of Directors, Officers, Shareholders and any other person or body that is deemed to act on behalf of the Company
by law or according to the Articles of Association.

 

		5.2.5.	Non-recurring bonus

 

In accordance with the provisions of
the law, the Company is entitled to decide to grant a non-recurring bonus on account of marked effort on the part of an Officer in the
Company, in the context of making a transaction and/or some other action such as an IPO and/or the purchase of an operation and/or asset,
the sale of an operation, mergers, the sale of the Company or a substantial part of its assets, the purchase of a company, activities
pertaining to implementation and/or adaptation pursuant to special regulatory changes, a strategic partnership agreement, signing a significant
agreement with a client/supplier, significant savings in the Company’s expenses etc. (“a Non-recurring Bonus”).

 

The amount of the Non-recurring Bonus
shall not exceed the amount of 3 monthly based salaries of the Officer to whom this Bonus is granted. In respect of the Company’s
CEO, the Non-recurring Bonus for a particular year, together with the discretionary bonus, shall not exceed 3 monthly base salaries.

 

The restrictions set forth in this
policy regarding the date of payment of the bonus and the return of surplus payments in the event of an error shall apply to the payment
of a Non-recurring Bonus.

 

		5.2.6.	General provisions

 

The Board of Directors is entitled
to decide to change the goals for any of the Officers in the Company pursuant to the recommendation of the Compensation Committee, at
any time it chooses in the course of that year, if there are extraordinary circumstances (for example – a change of position in
the course of the year, entry of new transactions that require the Officer to shift his administrative attention thereto) or substantial
events that occur, which justify changing the goals, even retroactively, in the manner deemed necessary in light of the extraordinary
circumstances or events, all without infringing on the interest of the Company.

 

		5.2.7.	Manner of calculation of bonus distribution

 

The bonus for each of the Officers
shall be determined on the basis of the Officer’s achievement of the goals set therefor for up to a year (or more, if so, determined
in the plan), ending in the year on account of which the bonus is paid.

 

		5.2.8.	Option to reduce bonus – the Board of Directors has the authority to reduce the amount
of the bonus actually paid, taking into account the Company’s financial condition on the date the bonus is approved and/or exceptional
and unanticipated events and/or circumstances that may negatively impact the Company’s financial condition in the future.

 

The Officers’ annual bonuses
shall be paid to the Officers immediately pursuant to the approval of the annual financial statements and calculation of the annual bonuses
as specified above.

 

    9

     

    

 

		5.2.9.	Option to return parts of the bonus paid to the Officer

 

The Bonus Plan shall include a proviso
under which each Officer entitled to a bonus commits to return the bonus or part thereof to the Company, as the case may be, to the extent
that it emerges in the course of a three-year period pursuant to the date of payment of this bonus, that the bonus was calculated on the
basis of information later found to be erroneous and resulted in a restatement in the Company’s financial statements. This return
proviso shall not apply in the event of a restatement of the Company’s financial statements arising from a change in accounting
standards.

 

		5.3.	Equity compensation

 

		5.3.1	Subject to receiving the approvals of the Company’s authorized Board of Directors, Officers, Shareholders
and any other person or body that is deemed to act on behalf of the Company by law or according to the Articles of Association, the Company
shall be entitled to propose to the Officers to participate in a Company plan for the grant of equity compensation, including Company
share options, shares, restricted shares, restricted share units, phantom share options, etc. The equity compensation will be granted
in accordance with the plan in force at the time of grant of the equity compensation, as shall be adopted from time to time and in accordance
with the following principles:

 

		5.3.1.1	The maximum financial value (on the date the Board of Directors decides to make the allotment) of the
sum total of all the options granted to an Officer in a calendar year shall not exceed (together with the annual bonus as stated in Article
5.2.2 above) the rates specified in the table in Article 4.3 above.7

 

		5.3.1.2	The exercise price – in the event of exercising options, the price of exercise shall not fall
                                                                 below the price of the share on the date the Board of Directors decides to make the grant, in a manner that provides proper
                                                                 incentive to maximize the Company’s value in the long term, and in any event, it shall not fall below the average price of the
                                                                 Company’s shares on the Tel Aviv Stock Exchange during the 30 trading days that preceded the Board of Directors’
                                                                 decision to grant the options. Without detracting from the generality of the aforesaid, it is clarified that subject to the decision
                                                                 of the Company’s Board of Directors, under circumstances in which the allotment of the securities to a certain Officer
                                                                 requires the approval of the General Meeting of Shareholders, the exercise price may be calculated, in accordance with the above
                                                                 principles, in relation to the date of the General Meeting of Shareholders’ approval. Moreover, under circumstances in which
                                                                 there is determined in the specific plan of a particular Officer a specific date of grant which is later than the date of approval
                                                                 of the Board of Directors or the General Meeting (as the case may be), the exercise price shall be calculated in accordance with
the above principles, in relation to the date of grant determined in the plan.

 

 

		7	In respect of the CEO – subject to Article ii4 above.

 

    10

     

    

 

		5.3.1.3	Vesting – the vesting period shall be no less than three years, where installment vesting is given
(with or without a cliff, and the rest of the installments – in a linear manner). The Company’s Board of Directors is entitled
to determine that where there occurs an acceleration event, as shall be defined by the Board of Directors, or as a result of termination
of the contract due to death or disability, the vesting of all or any of the securities granted to the Officer will be accelerated.

 

		5.3.1.4	The life of the option – the duration of the life of the options shall not exceed 10 years from
the day their date of grant, and the Company’s Compensation Committee and Board of Directors will stipulate provisions regarding
the expiration of all or any of the options in the event that the Officer’s employment in the Group is terminated and/or he stops
providing services to the Group.

 

		5.3.1.5	The maximum extent of dilution of the securities that are granted in the context of said plan, during
the period in which such compensation policy is in force, shall not exceed the rate of 15% of the Company’s issued share capital
(with full dilution) upon the grant of the securities and in consideration thereof.

 

		5.3.1.6	Moreover, the Company can set a mechanism in accordance with which, on the exercise date, the holder of
the securities will receive the benefit to which he is entitled, in an amount equal to the difference between the price of the Company’s
shares on the exercise date and the exercise price set for the securities, without being required to actually pay the exercise cost (the
cashless mechanism).

 

		5.4	Related terms and additional benefits for the Officers

 

To the extent that the Officer’s
Terms of Office and Employment include stipulations pertaining to the matters specified hereinafter, they will be determined in accordance
with the relevant considerations and criteria set forth in Article 2 above, as per the instructions below:

 

		5.4.1	Pension provisions – the Company will make contributions to a pension fund, director’s
and officers’ insurance, and a study fund in accordance with the provisions of the law or the generally accepted practice that applies
to this matter.

 

		5.4.2	Income protection insurance – the Company will have the Officer insured with income protection
insurance. The Company’s contributions to income protection insurance shall not exceed the rate of 2.5% of the Officer’s fixed
salary.

 

		5.4.3	Study fund – the Company and the Officer shall be entitled to make monthly contributions
to a study fund from the monthly salary, in the amounts stated in the employment agreement.

 

		5.4.4	Car – the Company shall be entitled to provide a car at the Officer’s disposal for
purposes of his fulfillment of his role, or to reimburse him for travel expenses or to provide the Officer
with payment in lieu of providing a car at his disposal. To the extent that the Company provides a car at the Officer’s disposal
as said, the Company shall bear its maintenance expenses (subject to the Company’s policy as determined from time to time) including
a full tax deduction

 

    11

     

    

 

		5.4.5	Cell phone – the Company shall be entitled to provide a cell phone at the Officer’s
disposal, for his use, in accordance with its rules as shall be determined from time to time. The Officer shall be entitled to full reimbursement
of the expenses he incurs in holding and using the cellphone, subject to the Company’s rules as shall be determined from time to
time. For tax purposes, the Company shall be entitled to deduct the value of the benefit for the Officer.

 

		5.4.6	Annual leave – the Officers shall be entitled to annual leave as determined in the individual
employment agreements signed with each of the Officers.

 

		5.4.7	Sick leave – the Officers shall be entitled to sick days as set forth in the individual employment
agreements signed with each of the Officers. The Officers’ right to accrue sick days shall be in accordance with the Sick Pay Law,
5736 – 1976.

 

		5.4.8	Convalescence – the Officers will be entitled to convalescence days and to the value of convalescence
days in accordance with the general extension order in the market which extends the provisions of the agreement signed between the Coordination
Bureau of Economic Organizations and the Histradrut Labor Federation, and in accordance with the general practice in the Group.

 

		5.4.9	Other benefits – the Company shall be entitled to grant the Officer from time-to-time additional
reasonable related terms and other benefits (such as a holiday gift, medical/dental insurance, annual medical screening tests, a professional
literature subscription, trainings, continuing education programs, professional body membership fees etc.) all in accordance with the
accepted practice in the Company and its policies in respect of such matters.

 

		5.4.10	Terms of office termination – each of the Officers is entitled to advance notice as set forth
in the individual employment agreements signed with each of the Officers, and to no more than an advance notice period of 6 months.

 

Throughout the period of advance notice,
the Officer will continue to work at the relevant Company until termination of the advance notice period, unless the Company chooses not
to employ him during this period or to employ him for a shorter period.

 

		5.4.11	Adjustment period – the Company shall be entitled to provide an adjustment period
for an Officer, to be set individually (if at all), with respect to each Officer, inter alia, in reference to the parameters specified
in Article 2 above, in the course of which the Officer will be entitled to retain his Terms of Office and Employment as stated above,
without his having to actually continue filling his role in the Company, which shall not exceed 8 months for the CEO and up to 6 months
for other Officers, together with the advance notice.

 

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		5.4.12	The Officers shall undertake standard nondisclosure and non-compete commitments.

 

		5.4.13	Severance pay – the Officers will be entitled to severance pay under the Severance Pay Law,
5723 – 1963 and subject to the Company’s discretion, as determined in the context of the Officers’ employment agreements.

 

		5.4.14	Expense reimbursement – the Officers will be entitled to a refund/payment of reasonable expenses
they actually paid in the context of their role in accordance with the Company’s policy as shall be determined from time to time.
There is no ceiling for the total of this monetary refund.

 

		5.4.15	Retirement grant – the Officers in the Company shall not be entitled to pension grants in
connection with the termination of their work in the Company.

 

		5.4.16	Liability, indemnification and exemption insurance – the Company shall be entitled to insure
the liability of the Officers that serve and/or that shall serve from time to time, with director and officer liability insurance, including
for directors who are a controlling shareholder or a relative thereof. Moreover, as per the decision of the Compensation Committee, the
Company shall be entitled to grant the Officers or to any one of them an indemnification and/or exemption letters drafted in accordance
with the text customarily used in the Company as it shall be from time to time.

 

		5.4.16.1	Without detracting from the aforesaid, the Officers will be covered by director and officer liability
insurance which the Company will purchase from time to time. The cumulative limit of liability in said insurance policy shall not exceed
15M USD. The cost of the premium and the amount of the access shall be with accordance with market conditions at the time the policy is
drafted. The Compensation Committee will determine the amounts of the premium and the access in the policies that the company will purchase,
depending on market conditions as they will prevail at the time of the purchase of these policies and after consulting with an expert
in the field of insurance, subject to a limit of liability of the insurance in the policies as defined above.

 

		5.4.16.2	Moreover, the Officers in the Company shall be entitled, subject to the provisions of the Companies Law
and the Company’s Articles of Association, to receive insurance coverage in the context of officer insurance, including “claims
made” insurance, or any other insurance coverage that applies to the Officers in the Company.

 

		5.4.16.3	Director and officer liability insurance (run-off) – should the Company sell its operation (in whole
or part) and/or in the event of the Company’s merger, spin-off, or entry into some other significant business combination, the Company
will be entitled to purchase a run-off director and officer liability insurance policy for the board members and Officers that served
in connection with the relevant activity, subject to the terms specified hereinafter: (a) the insurance period shall not exceed 7 years;
(b) the insurance coverage shall not exceed 15M USD and shall have at least the limit of liability of the previous
policy; (c) the premium borne by the Company shall not exceed 350% of the premium in the previous policy for the same limit of liability.

 

		5.4.16.4	It should be clarified that the related terms, as stated in this Article 5.4 above, are subject to the
provisions of any law including extension orders, to the extent applicable to the Group.

 

		5.4.16.5	Any change and/or deviation from this policy shall be brought for review before the Compensation Committee
and for the approval of the Company’s Board of Directors and General Meeting of Shareholders, as the case may be.

 

		6.	Compensation to board members

 

External directors and other directors
are compensated in accordance with the Companies Regulations (Rules on External Directors’ Remuneration and Expenses), 5760 –2000
(“the Compensation Regulations”), and the rate of the compensation shall be determined in accordance with the Compensation
Regulations based on the Company’s level of equity as specified in the Compensation Regulations (as it shall be determined from
time to time) and shall not exceed the maximum limit set in the Compensation Regulations.

 

Directors that serve also as Officers
shall not receive directors’ compensation on top of the rest of their terms of compensation specified in this compensation
policy.

 

Compensation to an inactive Chairman
of the Board of Directors shall be no more than double the amount paid to the rest of the directors that are not a controlling shareholder
or a relative of his, who are paid compensation in accordance with the Companies Regulations (Rules on External Directors’ Remuneration
and Expenses), 5760 –2000. To the extent that Avraham Brenmiller stops serving in double capacity and is appointed as the Company’s
active Chairman of the Board of Directors, the Company will update this compensation policy accordingly.

 

 

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