Document:

Exhibit 4.1

 

DESCRIPTION OF SECURITIES

 

Under the Amended and Restated
Articles of Association (the “Articles”) of On Track Innovations Ltd. (the “Company”), the Company is authorized
to issue up to one hundred and twenty million (120,000,000) ordinary shares, nominal value NIS 0.10 per share (the “Ordinary Shares”).
As of December 31, 2021, the Company had 72,789,893 outstanding Ordinary Shares, 1,178,699 Ordinary Shares that were repurchased by the
Company and are held as dormant shares, 2,985,500 restricted shares granted to employees and 649,000 options to purchase additional Ordinary
Shares at a weighted average exercise price of $0.42 per share. The Ordinary Shares are quoted on the OTCQX® market (“OTCQX”)
under the symbol “OTIVF.”

 

The following is a summary
of some of the terms of the Company’s Ordinary Shares, which is the Company’s only class of securities registered under Section
12 of the Securities Exchange Act of 1934, as amended. This summary is not complete, and is subject to and qualified by the provisions
of the Articles. The terms of the Ordinary Shares are also subject to and qualified by the applicable provisions of the Companies Law,
5759-1999, of the State of Israel (the “Companies Law”). The ownership or voting of Ordinary Shares by non-residents of Israel
is not restricted in any way by the Articles or the laws of the State of Israel, except that nationals of countries which are in a state
of war with Israel might not be recognized as owners of Ordinary Shares.

 

Registered Share Capital

 

Increasing the authorized
share capital of the Company, including Ordinary Shares, must be approved by the Company’s shareholders. Because the approval of
an increase in the Company’s authorized share constitutes an amendment to the Memorandum of Association of the Company, the affirmative
vote of 75% of the Company’s Ordinary Shares voting on the matter is required to approve such resolution.

 

Dividend and Liquidation Rights

 

The Company is permitted to
declare a dividend to be paid to the holders of Ordinary Shares, but the Company has never declared a dividend and it does not anticipate
any dividend declaration in the foreseeable future. Dividends may only be paid out of the Company’s profits (“the profit test”),
provided that there is no reasonable concern that payment of a dividend will prevent the Company from satisfying its existing and foreseeable
obligations as they become due (“the solvency test”). Profits, as defined in section 302(b) to the Companies Law, mean surplus
balance or surplus accumulated during the last two years, whichever is higher. Alternatively, an Israeli court is entitled, at the Company’s
request, to approve a dividend distribution, which does not meet the profit test, provided it is convinced that the solvency test is met.
In the event of the Company’s liquidation, after satisfaction of liabilities to creditors, the Company’s assets will be distributed
to the holders of Ordinary Shares in proportion to the nominal value of their holdings. This right may be affected by the grant of preferential
dividend or distribution rights to the holders of a class of shares with preferential rights that may be authorized in the future by the
Company’s shareholders. Under the Companies Law, the declaration of a dividend does not require the approval of the shareholders
of a company unless the company’s articles of association require otherwise. The Articles provide that the Company’s board
of directors may declare and pay dividends without the approval of its shareholders.

 

Preemptive Rights

 

Under the Companies Law, shareholders
in public companies do not have preemptive rights unless those rights are provided pursuant to a contract. This means that the Company’s
shareholders do not have the legal right to purchase shares in a new issuance before they are offered to third parties. As a result, the
Company’s shareholders could experience dilution of their ownership interest if the Company decides to raise additional funds by
issuing more shares and these shares are purchased by third parties. Pursuant to the share purchase agreement (the “Share Purchase
Agreement”) dated December 23, 2019 by and among the Company, Jerry L. Ivy, Jr. Descendants’ Trust (“Ivy”) and
certain other investors, Ivy has a right to purchase any future equity securities offered by the Company, except with respect to certain
exempt issuances as set forth in the Share Purchase Agreement.

 

     

     

    

 

Voting, Shareholders’ Meetings and Resolutions

 

Holders of Ordinary Shares
have, for each Ordinary Share held, one vote on all matters submitted to a vote of the Company’s shareholders. These voting rights
may be affected by the grant of any special voting rights to the holders of a class of shares with preferential rights that may be authorized
in the future by the Company’s shareholders. The quorum required for a general meeting of shareholders consists of at least two
shareholders present, in person or by proxy, who hold or represent together at least one third of the Company’s issued and outstanding
Ordinary Shares or, as long as the Company is quoted on OTCQX, such higher percentage as OTCQX may impose on quoted companies from time
to time so long as such higher percentage is in effect. A meeting adjourned for lack of a quorum is generally adjourned to the same day
in the following week at the same time and place. If a quorum is not present within half an hour following the time appointed for the
reconvened meeting, any two shareholders then present, in person or by proxy, shall constitute a quorum.

 

Under the Companies Law, unless
otherwise provided in the Articles or by applicable law, shareholders’ resolutions require the approval of holders of a simple majority
of our ordinary shares voting, in person or by proxy on the matter. A shareholders’ resolution to amend the Articles requires the
approval of a simple majority of the Company’s shareholders present in person or by proxy.

 

Under the Companies Law, a
shareholder has certain duties of good faith and fairness towards the Company.

 

Election of Directors

 

The Ordinary Shares do not
have cumulative voting rights for the election of directors. Rather, under the Articles the Company’s directors (other than external
directors) are elected at a shareholders meeting by a simple majority of Ordinary Shares for a term of service ending upon the next general
meeting following three years from their election. External directors are elected by a simple majority of Ordinary Shares, which majority
includes at least a majority of the shares held by non-controlling shareholders who do not have a personal interest in the matter (excluding
a personal interest unrelated to the relationship with a controlling shareholder) voted at the meeting, or the total number of shares
held by such non-controlling shareholders who do not have a personal interest voted against the election of the external director does
not exceed two percent of the aggregate voting rights in the Company. As a result, the holders of Ordinary Shares that represent more
than 50% of the voting power represented at a shareholder meeting have the power to elect any or all of the Company’s directors
whose positions are being filled at that meeting, subject to the additional approval requirements for external directors.

 

Modification of Class Rights

 

The rights attached to any
class, such as voting, liquidation and dividend rights, may be amended, following a decision by the Company’s board of directors,
by adoption of a resolution by a simple majority of the shares of that class represented at a separate class meeting.

 

Transfer of Shares and Notices

 

Fully paid Ordinary Shares
are issued in registered form and may be freely transferred under the Articles unless the transfer is restricted or prohibited by Israeli
law, U.S. securities laws or the rules of a stock exchange on which the shares are traded. Under the Companies Law and applicable regulations,
unless otherwise provided in the Articles or by applicable law, shareholders of record are entitled to receive at least 35 or 21 days’
prior notice of meetings of shareholders, based on the matters that are on the agenda.

 

    2

     

    

 

Anti-Takeover Provisions under Israeli Law

 

Tender Offer.
A person wishing to acquire shares of a publicly traded Israeli company and who would, as a result, hold over 90% of the company’s
issued and outstanding share capital or voting rights is required by the Companies Law to make a tender offer to all of the company’s
shareholders for the purchase of all of the issued and outstanding shares of the company. A person wishing to acquire shares of a public
Israeli company and who could, as a result, hold over 90% of the issued and outstanding share capital or voting rights of a certain class
of shares is required by the Companies Law to make a tender offer to all of the shareholders who hold shares of the relevant class for
the purchase of all of the issued and outstanding shares of that class. If the shareholders who refuse to sell their shares hold less
than 5% of the issued share capital and voting rights of the company or of the applicable class, all of the shares held by such shareholders
that the acquirer offered to purchase will be transferred to the acquirer by operation of law (provided that a majority of the offerees
that do not have a personal interest in such tender offer shall have approved it, which condition shall not apply if, following consummation
of the tender offer, the acquirer would hold at least 98% of all of the company’s outstanding shares and voting rights (or shares
and voting rights of the relevant class)). However, the shareholders may, at any time within six months following the completion of the
tender offer, petition the court to alter the consideration for the acquisition. Even shareholders who indicated their acceptance of
the tender offer may so petition the court, unless the acquirer stipulated that a shareholder that accepts the offer may not seek appraisal
rights. If the dissenting shareholders hold more than 5% of the issued and outstanding share capital or voting rights of the company
or the applicable class, the acquirer may not acquire additional shares or voting rights of the applicable class from shareholders who
accepted the tender offer, if following such acquisition the acquirer would then own over 90% of the issued and outstanding share capital
or voting rights of the company or the applicable class.

 

The Companies Law provides
that an acquisition of shares of a public company must be made by means of a special tender offer if, as a result of the acquisition,
the purchaser would become a holder of 25% or greater of the voting rights in the company. This rule does not apply if there is already
another holder of 25% or greater of the voting rights in the company. As of the date hereof, the Company is not aware of any single shareholder
which holds 25% or more of the voting rights in the Company. However, pursuant to the terms of the Share Purchase Agreement, if the Subsequent
Closing (as defined under the Share Purchase Agreement) is consummated, subject to, among other things, the approval of the Company’s
shareholders, Ivy will hold more than 25% of the voting rights in the Company. Similarly, the Companies Law provides that an acquisition
of shares in a public company must be made by means of a special tender offer if as a result of the acquisition the purchaser would become
a holder of more than 45% of the voting rights in the company, if there is no other holder of more than 45% of the voting rights in the
company. The special tender offer must be extended to all shareholders, but the offeror is not required to purchase shares representing
more than 5% of the voting power attached to the company’s outstanding shares, regardless of how many shares are tendered by shareholders.
The special tender offer may be consummated only if (i) at least 5% of the voting power attached to the company’s outstanding shares
will be acquired by the offeror and (ii) the number of shares tendered in the offer exceeds the number of shares whose holders objected
to the offer.

 

Merger.
The Companies Law permits merger transactions if approved by each party’s board of directors and the majority of each party’s
shares voted on the proposed merger at a shareholders’ meeting called on at least 21 days’ prior notice. The Articles provide
that merger transactions may be approved by a simple majority of the shares present, in person or by proxy, at a general meeting of the
Company’s shareholders. Under the Companies Law, in determining whether the required majority has approved the merger, shares held
by the other party to the merger, any person holding at least 25% of the outstanding voting shares or holding at least 25% of the means
of appointing directors of the other party to the merger, or anyone acting on their behalf, including their relatives or companies controlled
by them, are excluded from the vote. If a majority of shareholders of one of the parties do not approve the transaction because the votes
of certain shareholders are excluded from the vote, a court may still approve the merger upon the request of holders of at least 25%
of the voting rights of a company, if the court holds that the merger is fair and reasonable, taking into account the value of the parties
to the merger and the consideration offered to the shareholders. Upon the request of a creditor of either party to the proposed merger,
the court may delay or prevent the merger if it concludes that there exists a reasonable concern that, as a result of the merger, the
surviving company will be unable to satisfy the obligations of any of the parties to the merger. In addition, a merger may not be executed
unless at least 30 days have passed from the approval of the companies’ shareholders and at least 50 days have passed from the
time that the proposals for approval of the merger have been filed with the Israeli Registrar of Companies.

 

 

3Exhibit 10.5

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

AND

 

A NOTICE UNDER THE NOTICE TO EMPLOYEE
LAW

 

(TERMS OF EMPLOYMENT), 5762 – 2002

 

Duly executed on the 2nd day of February,
2022

 

BY AND BETWEEN

 

On Track Innovations Ltd.

 

Z.H.R. Industrial Zone, Rosh Pina 12000

 

Israel

 

(The “Company”)

 

AND

 

Amir Eilam I.D. 035871953

 

Ayelet Ha’Shachar. 1220000 Israel

 

 (The “Employee”)

 

		WHEREAS,	the Employee has been employed by the Company starting on May 17, 2005; and

 

		WHEREAS,	the Company and the Employee entered into several employment agreements dated May 10, 2005, March 15, 2009 and September 29, 2014
(collectively, the “Previous Agreements”); and

 

		WHEREAS,	the Company and Employee wish to amend certain provisions of the Previous Agreements, and restate the terms thereof, while maintaining
a complete rights continuum, including, without limitation, Employees rights to severance pay; and

 

 NOW THEREFORE, in considerations of the mutual promises and
agreements, the parties hereto agree, declare and stipulate as follows:

 

		1.	General

 

		1.1.	The preamble and any appendix attached hereto shall constitute an integral part hereof.

 

		1.2.	The Company hereby hires Employee as the Chief Executive Officer of the Company effective as of the Commencement
Date (as such term is defined below) and Employee accepts such employment upon the following terms and conditions. Employee’s responsibilities
are as set forth in Appendix A.

 

		2.	Term and Termination

 

		2.1.	The term of this Agreement commenced retroactively as of November 3, 2021 or an earlier date as may be
agreed to by the parties (the “Commencement Date”), provided that this Agreement is approved by the requisite corporate
organs of the Company. The Employee acknowledges that this Agreement is subject to approval of the shareholders of the Company and that
certain items listed in Appendix A will be paid issued or granted subject to approval of the Company’s shareholders meeting or otherwise
approved under applicable law. This Agreement is for an unlimited duration. Notwithstanding the above, each party to this Agreement may
terminate it without cause upon serving the other party a written notice of 90 days, prior to termination (the “Term”,
“Notice” respectively). During the period after Notice is given, Employee shall continue to perform all of his obligations
pursuant to the terms of this Agreement. Notwithstanding the aforesaid, by notifying Employee concurrently with or at any time after a
termination Notice is delivered by either party hereto, Company shall be entitled to waive Employee’s services with Company during
the Notice period or any part thereof and/or terminate the employer-employee relationship prior to the completion of the Notice period;
In such event Company shall pay Employee that sum equal to the compensatory payment as required by, and in accordance with, the Prior
Advanced Notice for Dismissal and Resignation Law of 2001.

 

     

     

    

 

		2.2.	It is hereby agreed that in case that Employee resigns, the Company shall be entitled, at its sole discretion,
without any need to provide any explanation whatsoever, to shorten the notice period to the statutory period in accordance with the Prior
Advanced Notice for Dismissal and Resignation Law of 2001. Under such circumstances, Employee would not have any claim, request or demand
in connection with shortening of the notice Period and Employee will not be entitled to any compensation in respect of such shortening,
provided that Employee shall be entitled to the same rights as if the notice period has not been shortened.

 

		2.3.	Upon termination of this Agreement, for whatever reason, by the end of employee-employer relationships,
Employee shall immediately return to the Company all the information, documents, office equipment, and other supplies which Employee received
during his employment in the Company. Employee hereby waives any rights to withhold or retain any of the items above, whether Employee
had the right under law or contract or otherwise. During the period following the Notice was given, Employee shall cooperate with the
Company and use his best efforts to assist the integration into the Company’s organization of the person or persons who will assume
Employee’s responsibilities.

 

		2.4.	Notwithstanding the above, the Company shall be entitled to immediately terminate this Agreement without
providing a prior notice and with no additional compensation in the following events: (i) Employee has committed a dishonorable criminal
offense; (ii) Employee has breached his duties of trust or loyalty to Company; (iii) Employee has deliberately caused harm to Company’s
business affairs; (iv) Employee has breached the confidentiality and/or non-competition and/or non-solicitation provisions of this Agreement;
and/or (v) circumstances that do not entitle Employee to severance payments under any applicable law and/or under any judicial decision
of a competent tribunal (“Termination For Cause”).

 

		3.	Employee’s Representations and Undertakings

 

		3.1.	Employee represents and warrants to the Company that the execution and delivery of this Agreement and
the fulfillment of the terms hereof (i) will not constitute a default or breach of any agreement or instrument to which he is party or
by which he is bound, including without limitation, any confidentially and non-competition agreement, (ii) does not require the consent
of any person or entity, (iii) shall not utilize during the Term any proprietary information of any third party, including prior employers
of Employee.

 

		3.2.	Employee undertakes to comply with the Company’s disciplinary regulations, work rules, policies,
procedures and objectives, including without limitations, the Company’s Insider Trading Policy.

 

		3.3.	During the Term, Employee shall, except during customary vacation periods and periods of illness, devote
all necessary time and attention to the business of the Company and shall perform his duties diligently and promptly for the benefit of
the Company. Employee shall devote all his attention to promoting the best interests of the Company and shall not take any engagement,
where compensatory or not, without the Company’s prior written approval. Employee shall competently perform all assigned duties
and carry out the policies, directives, and decisions of the Company.

 

		3.4.	While performing services for the Company, Employee shall not engage in any activities that may interfere
or conflict with the proper discharge of his duties hereunder. Employee shall notify the Company immediately of every matter or transaction
in which Employee has a significant personal interest and/or that might create a conflict of interest with Employee’s position in
the Company.

 

		3.5.	Employee acknowledges that his position is one requiring a special degree of personal confidence, as defined
under the Working Hours and Rest Law, 5711-1951, thus the provisions of such law shall not apply to Employee and he shall not be entitled
to claim or receive any payments or increments whatsoever for working overtime or on Sabbaths and festivals, and the monthly salary payable
to him also includes full compensation for working overtime and on Sabbaths and festivals.

 

    2

     

    

 

		3.6.	Employee represents that he has reviewed the salary conditions described herein and the terms and conditions
of employment to which he is entitled under this Agreement, and has found the same to constitute proper remuneration for his work.

 

		3.7.	Employee shall be employed by the Company at its offices in such places as shall be determined by the
Company. Employee hereby acknowledges that his employment may further require extensive travels outside of Israel and that he will not
be entitled to additional compensation with respect thereto.

 

		3.8.	Employee shall be entitled to be reimbursed for his reasonable business expenses in Israel and abroad,
as the case may be, in accordance with the Company’s then current policies, against submission of corresponding invoices or any
other proper documentation as shall be reasonably required to evidence for all such expenses.

 

		3.9.	Employee undertakes not to communicate or discuss any of Employer matters in any way, form or manner with
any media body, person or entity, including social media, unless otherwise required in the framework of Employee’s position and
responsibilities in the Company. Employee understands the importance of confidentiality regarding anything relating to the Employer and
the special sensitivity resulting from the fact that the Employer is a public company and a domestic issuer in the United States.

 

		4.	Compensation

 

		4.1.	Employee shall be entitled to compensation and other benefits and conditions as detailed in Appendix A attached
hereto.

 

		4.2.	The amount of the Monthly Salary payable to Employee as specified in Appendix A, and it alone, shall be
the basis for the provisions and deductions in respect of the social benefits specified in this Agreement; and all the bonuses, contributions
to expenses and other benefits granted to Employee or which shall be given to him (if at all) pursuant to this Agreement or in connection
with his employment by the Company do not constitute a component of his Monthly Salary and shall not be taken into account in respect
of the provisions or other benefits whatsoever granted to Employee pursuant to this Agreement which are computed on the basis of his Monthly
Salary.

 

		4.3.	The payments and benefits of whatsoever description granted to Employee pursuant to this Agreement are
subject to the deduction of income tax and other compulsory deductions which the Company has to deduct according to any law, and nothing
stated in this Agreement shall be interpreted as imposing upon the Company the burden of paying tax or any other compulsory payment for
which the Employee is liable, other than the value of the benefit of placing the car at the Employee’s disposal, providing the Employee
with meals, use of Company’s phone which shall be grossed up by the Company as provided in this Agreement.

 

		5.	Confidentiality and Non-Compete Undertaking, Insider Trading Policy and Foreign Corruption Practice Act Policy

 

Employee undertakes, in addition to any other commitment
he may take upon himself, and without derogating from any such undertaking, to confirm and fulfill all the undertakings set in (i)
the secrecy, non-competition and proprietary information undertaking attached hereto as Appendix B; (ii) Insider Trading Policy attached
hereto as Appendix C; and (iii) Foreign Corruption Practice Act Policy attached hereto as Appendix D.

 

		6.	Media Equipment 

 

The Company will provide Employee with a cellular phone,
a computer, an e-mail or any other property of the Company for communication needs during the Employee’s work (the “Media
Equipment”). Employee undertakes to use the Company’s Media Equipment and facilities only for the purpose of his employment
and in accordance with any rule or regulation. Employee further undertakes not to use any other Media Equipment for the Company’s
business. Employee acknowledges that all of the Media Equipment is the property of the Company and agrees that the Company is entitled
to conduct inspections within the Company’s offices and on the Company’s Media Equipment with respect to Company’s related
matter, including inspections of company e-mail transmissions and inspections of their content at the Company’s discretion, to the
extent permitted under Israeli law. For the avoidance of any doubt, it is hereby clarified that all such examination findings shall be
the Company’s sole property. By signing this Agreement, Employee grants the Company an irrevocable right to conduct inspections
as aforesaid, including unannounced inspections.

 

    3

     

    

 

		7.	Miscellaneous

 

		7.1.	Company shall withhold, or charge Employee with all taxes and other compulsory payments as required under
applicable law with respect to all payments, benefits and/or other compensation paid to Employee in connection with his employment with
Company.

 

		7.2.	Captions and paragraph headings used in this Agreement are for convenience purposes only and shall not
be used for the interpretation thereof.

 

		7.3.	This Agreement shall survive an accidental invalidity of one or more of its sections. Company’s
failure or delay in enforcing any of the provisions of this Agreement shall not, in any way, be construed as a waiver of any such provisions,
or prevent Company thereafter from enforcing each and every other provision of this Agreement which were previously not enforced.

 

		7.4.	This Agreement shall be interpreted and construed in accordance with the laws of the State of Israel.
All disputes arising from this Agreement shall be exclusively referred to the competent courts of Tel Aviv-Jaffa district, Israel.

 

		7.5.	This Agreement, including its appendices, constitutes the entire agreement between the parties concerning
the subject matter hereof. Amendments to, and modifications of, this Agreement, shall be effective only upon approval thereof by both
parties in writing. This Agreement and the appendixes hereto shall be deemed as a notice to the Employee in accordance with the Notice
to Employees Law (Terms and Conditions of Employment), 5762-2002. 

 

		7.6.	All notices, requests and other communications to any party hereunder shall be given or made in writing
and electronically transmitted, mailed (by registered or certified mail) or delivered by hand to the respective party at the address set
forth in the caption of this Agreement or to such other address (or facsimile number or an e-mail address) as such party may hereafter
specify for the purpose of notice to the other party hereto. Each such notice, request or other communication shall be effective (i) if
given by facsimile or e- mail, when such facsimile or electronic mail is transmitted to the facsimile number or electronic mail address
specified herein and the appropriate answerback is received or (ii) if given by any other means, when delivered at the address specified
herein.

 

		7.7.	The above and the said in the appendixes shall be without prejudice to any right conferred to the Employee
by any law, extension order or collective agreement.

 

[Signature Page Follows]

 

    4

     

    

 

IN WITNESS WHEREOF the parties hereunder set their hands.

 

	Signature: 	/s/ Amir Eilam	 	Signature: 	/s/ Leonid Berkovitch
	 	Name: 	Amir Eilam	 	 	Name: 	Leonid Berkovitch
	 	Title:	Chief ExecutiveOfficer	 	 	Title:	Director

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00343-of-00352.parquet"}]]