Document:

8-K

Exhibit 10.1  

Acro Inc. 

2008 ISRAELI SHARE
OPTION PLAN  

	1.  	PURPOSE  

	 	
The
purpose of this Share Option Plan is to secure for Acro Inc. and its shareholders the
benefits arising from ownership of share capital by employees, officers directors and
consultants of the Company and its Affiliates (as defined below), who are expected to
contribute to the Company’s future growth and success.  

	2.  	DEFINITIONS  

	2.1  	DEFINED
TERMS  

	 	
Initially
capitalized terms, as used in this Plan, shall have the meaning ascribed thereto as set
forth below:  

	 		
	 	"Administrator"	means the Board of Directors of the Company, or a committee to which the Board of Directors shall have delegated power to act on its behalf with respect to the Plan.
	 	 
	 	"Affiliate(s)"	means a present or future company that either (i) Controls Acro Inc. or is Controlled by Acro Inc. ; or (ii) is Controlled by the same person or entity that Controls Acro Inc.
	 	 
	 	"Allocate" or "Allocated"	with respect to Options, means the allocation of Options by the Company to the Trustee on behalf of a Participant.
	 	 
	 	"Cause"	means, when used in connection with the termination of a Participant's employment with, or service to the Company or an Affiliate, as a result of a basis for termination, including, but not limited to: dishonesty toward the Company or Affiliate, insubordination, substantial malfeasance or nonfeasance of duty, unauthorized disclosure of confidential information, and conduct substantially prejudicial to the business of the Company or Affiliate; or, any substantial breach by the Participant of (i) his or her employment or service agreement or (ii) any other obligations toward Company or Affiliate.
	 	 
	 	"Commencement  Date"	means the date of commencement of the vesting schedule with respect to a Grant of Options which, unless otherwise determined by the Administrator, shall be the date on which such Grant of Options shall be Allocated.

	 	"Company"	means Acro Inc., a company incorporated under the laws of the State of Nevada, U.S.A.
	 	 
	 	"Consultant"	means an Israeli resident who is not entitled to receive Options under Section 102, on behalf of whom an Option is Granted under Section 3i.
	 	 
	 	"Control" or "Controlled"	shall have the meaning ascribed thereto in Section 102.
	 	 
	 	"Disability"	means total and permanent physical or mental impairment or sickness of a Participant, making it impossible for the Participant to continue such Participant's employment with or service to the Company or Affiliate.
	 	 
	 	"Exercise Price"	means, the price determined by the Administrator in accordance with Section 7.1 below which is to be paid to the Company in order to exercise a Granted Option and convert such Option into an Underlying Share.
	 	 
	 	"Grant Letter"	means a letter from the Company or Affiliate to a Participant in which the Participant is notified of the decision to Grant to the Participant Options according to the terms of the Plan. The Grant Letter shall specify (i) the Tax Provision under which the Option is Granted; (ii) the Tax Track that the Company chose according to Section 11 of the Plan (if applicable); (iii) the Exercise Price; and (iv) the number of Options Granted to the Participant.
	 	 
	 	"Grant of Options"	with respect to Options, means the grant of Options by the Company to a Participant pursuant to a Letter of Grant
	 	 
	 	"Holding Period"	means with regard to Options Granted under Section 102, the period in which the Allocated Options granted to a Participant or, upon exercise thereof the Underlying Shares, are to be held by the Trustee on behalf of the Participant, in accordance with Section 102, and pursuant to the Tax Track which the Company selects.
	 	 
	 	"Israeli Participant"	means, an Israeli resident who is an employee, officer or director of the Company or any Affiliate (provided that such person does not Control the Company as such term is defined in the Tax Ordinance), on behalf of whom an Option is Granted pursuant to Section 102.
	 	 
	 	"Law"	means the laws of the State of Israel as are in effect from time to time.

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	 	"Merger Transaction" or "Merger"	(i) a sale of all or substantially all of the assets of the Company; or (ii) a sale (including an exchange) of all or substantially all of the shares of the capital stock of the Company; or (iii) a merger, consolidation or like transaction of the Company with or into another corporation.
	 	 
	 	"Notice of Exercise"	shall have the meaning set forth in Section 7.4 below.
	 	 
	 	"Option"	means an option to purchase one Share of the Company.
	 	 
	 	"Non-Qualified Israeli Participant"	means an Israeli resident who is not qualified to receive Options under the provisions of Section 102, on behalf of whom an Option is Granted pursuant to Section 3i.
	 	 
	 	"Participant"	means an Israeli Participant, or a Non-Qualified Israeli Participant, or a Consultant.
	 	 
	 	"Plan" or "Option Plan"	means this Share Option Plan, as may be amended from time to time.
	 	 
	 	"Retirement"	means the termination of a Participant's employment as a result of his or her reaching the earlier of (i) the age of retirement as defined by Law; or (ii) the age of retirement specified in the Participant's employment agreement.
	 	 
	 	"Section 102"	means Section 102 of the Tax Ordinance.
	 	 
	 	"Section 102 Rules"	means the Income Tax Rules (Tax Relief for Issuance of Shares to Employees), 2003.
	 	 
	 	"Section 3(i)" or "Section 3(i) Rules"	means section 3(i) of the Israeli Tax Ordinance and the applicable rules thereto or under applicable regulations.
	 	 
	 	"Share(s)"	means a common stock of the Company, having a par value of US$0.001.
	 	 
	 	"Tax Ordinance"	means the Israeli Income Tax Ordinance [New Version], 1961, as amended, and any regulations, rules, orders or procedures promulgated thereunder.
	 	 
	 	"Tax Track"	means one of the three tax tracks described under Section 102, specifically: (1) the "Capital Gains Track Through a Trustee"; (2) "Income Tax Track Through a Trustee"; or (3) the "Income Tax Track Without a Trustee"; each as defined in Sections 11.1-11.2 of this Plan, respectively.

3

	 		
	 	"Tax Provision"	means, with respect to the Grant of Options, the provisions of one of the three Tax Tracks in Section 102, or the provisions of 3i.
	 	 
	 	"Term of the Options"	means, with respect to Granted but unexercised Options, the time period set forth in Section 9 below.
	 	 
	 	"Trustee"	means a Trustee appointed by the Company to hold in trust, Allocated Options and the Underlying Shares issued upon exercise of such Options, on behalf of Participants.
	 	 
	 	"Underlying Shares"	means Shares issued or to be issued upon exercise of Granted Options all in accordance with the Plan.

	2.2  	GENERAL  

	 	
Without
derogating from the meanings ascribed to the capitalized terms above, all singular
references in this Plan shall include the plural and vice versa, and reference to one
gender shall include the other, unless otherwise required by the context.  

	3.  	SHARES
AVAILABLE FOR OPTIONS  

	 	
The
total number of Underlying Shares reserved for issuance under the Plan and any
modification thereof, shall be determined from time to time by the Board of Directors of
the Company. Such number of Shares shall be subject to adjustment as required for the
implementation of the provisions of the Plan, in accordance with Section 4 below.  

	 	
In
the event that Options Allocated under the Plan expire or otherwise terminate in
accordance with the provisions of the Plan, such expired or terminated Options shall
become available for future Grants and Allocations under the Plan.  

	4.  	ADJUSTMENTS  

	 	
Bonus
Shares – In the event that the Company distributes bonus shares and the record
date for such distribution is subsequent to the date of grant of the Options, but prior
to their exercise or expiration, the number of Underlying Shares will be increased by the
number of Shares each Participant would have been entitled to had such Participant
exercised the Options prior to the record date set for such distribution. The Exercise
Price of the Options will not be amended due to the increase in the number of Exercise
Shares the Participant is entitled to following a distribution of bonus Shares.  

	 	
Issuance
of Rights – In the event the Company’s shareholders are issued rights for
the purchase of any securities of the Company, the Company will take actions to cause
that such rights be offered on the same terms, mutatis mutandis, also to the Participants
who hold Options that have not yet been exercised or expired as if such Participants have
exercised their Options prior to the date determining the right to participate in the
issuance of the aforesaid rights. The number of Underlying Shares will not increase as a
result of such issuance of rights.  

4

	 	
For
the avoidance of doubt the employees’ rights to securities of the Company in the
event of a distribution of bonus shares and/or the issuance of rights as aforesaid, will
only apply at the Date of the Exercise.  

	 	
Change
in Capitalization – In the event of a split or a consolidation of Shares, or any
other capital event of a materially similar nature, the Company will make the changes or
the adjustments necessary in order to prevent the dilution or increase of the rights of
the Participants within the framework of the Plan with respect to the number and class of
the Underlying Shares and/or the Exercise Price of each Option.  

	 	
Cash
Dividend – In the event the Company distributes a dividend in cash and the
record date for such distribution is subsequent to the date of grant of the Options, but
prior to the their exercise or expiration, the Exercise Price of each Option will be
reduced by the dividend amount net of tax.  

	 	
Merger
Transaction  

	 	
In
the event of a Merger Transaction, the Administrator in its sole discretion shall decide:  

	 	(A) 	If
and how the unvested Options shall be canceled, replaced or accelerated; 

	 	(B) 	If
and how vested Options (including Options with respect to which the vesting
                    period has been accelerated according to Section (A) shall be
exercised,                     replaced and/or sold by the Trustee or the Company (as the
case may be) on the                     behalf of Israeli Participants; 

	 	(C) 	How
Underlying Shares issued upon exercise of the Options and held by the
                    Trustee on behalf of Participants shall be replaced and/or sold by
the Trustee                     on behalf of the Participant. 

	 	
Fraction
of Shares – In any event that the Company will be required to issue to a
Participant fraction of Shares pursuant to this Section 4, the Company will not issue
fraction of Shares and the number of Shares shall be rounded down to the closest number
of Shares.  

	 	
For
the purposes of this section, the Company’s calculation will be final, and the
Participant shall have no claims or demands against the Company or anyone on its behalf. 

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	5.  	ADMINISTRATION
OF THE PLAN  

	5.1  	POWER  

	 	
Subject
to the Law, the Articles of Association of the Company, and any resolution to the
contrary by the Company’s Board of Directors, the Administrator is authorized, in
its sole and absolute discretion, to exercise all powers and authorities either
specifically granted to it under the Plan or necessary or advisable in the administration
of the Plan (subject to the approval of the Board of Directors if such approval is
required by Law) including, without limitation;  

	 	(A) 	to
determine: 

	 	(i) 	the
Participants in the Plan, the number of Options to be Granted for each
               Participant’s benefit and the Exercise Price;  

	 	(ii) 	the
time or times at which Options shall be Granted;  

	 	(iii) 	whether,
to what extent, and under what circumstances an Option may be settled,
               canceled, forfeited, exchanged, or surrendered;  

	 	(iv) 	any
terms and conditions in addition to those specified in the Plan under which
               an Option may be Granted; and  

	 	(v) 	any
measures, and to take actions, as deemed necessary or advisable for the
               administration and implementation of the Plan.  

	 	(B) 	to
interpret the provisions of the Plan and to take all actions resulting
               therefrom including without limitation; 

	 	(i) 	subject
to Section 7, to accelerate the date on which any Allocated Option under
               the Plan becomes exercisable;  

	 	(ii) 	to
waive or amend Plan provisions relating to exercise of Options, including
               exercise of Options after termination of employment, for any reason; and  

	 	(iii) 	to
amend any of the terms of the Plan, or any prior determinations of the
          Administrator;  

	5.2  	LIMITATIONS  

	 	
Notwithstanding
the provisions of Section 5.1 above, no interpretations, determinations or actions of the
Administrator shall contradict the provisions of applicable Law, and no waiver or
amendment with respect to the Plan shall have a material adverse affect on any Participant’s
rights in connection with any Granted Option under the Plan without receiving the consent
of such Participant.  

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	6.  	GRANT
AND ALLOCATION OF OPTIONS  

	6.1  	CONDITIONS
FOR GRANT OF OPTIONS  

	 	
Options
may be Granted at any time after:  

	 	(A) 	the
grant has been approved by the necessary corporate bodies of the Company;           and 

	 	(B) 	all
other approvals, consents or requirements necessary by Law have been           received
or met. 

	6.2  	CONDITIONS
FOR ALLOCATION OF OPTIONS  

	 	
Options
may be Allocated at any time after:  

	 	(A) 	the
Plan has been approved by the necessary corporate bodies of the Company; and 

	 	(B) 	30
days after a request for approval of the Plan has been submitted for approval
                    to the Israeli Income Tax Authorities pursuant to the requirements of
the Tax                     Ordinance; and 

	 	(C) 	all
other approvals, consents or requirements necessary by Law have been
                    received or met. 

	6.3  	DATE
OF GRANT OR ALLOCATION  

	 	(a) 	The
date on which Options shall be deemed Granted under the Plan shall be the
               date on which the Company shall notify the Participant in a Grant Letter
that                such Options have been Granted to the Participant (“Date of Grant”). 

	 	(b) 	The
date on which Options shall be deemed Allocated under the Plan shall be the
               date on which the Company shall notify the Trustee that such Options have
been                Allocated in the name of the Trustee on behalf of a Participant (“Date
of                Allocation”). 

	7.  	EXERCISE
OF OPTIONS

	7.1  	EXERCISE
PRICE  

	 	
The
Exercise Price per Underlying Share deliverable upon the exercise of an Option shall be
determined by the Administrator. The Exercise Price shall be set forth in the Grant
Letter.  

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	7.2  	VESTING
SCHEDULE  

	 	
All
Options Granted on a certain date shall, subject to continued employment with or service
to the Company or Affiliate by the Participant, become vested and exercisable according
to the Administrator’s determination.  

	7.3  	MINIMUM
EXERCISE  

	 	
No
exercise of Options by any Participant shall be for the lower of: (1) an aggregate
Exercise Price of less than  $100 , or such other minimum sum determined by the
Administrator, unless the exercise is of all of the Participant’s Options that are
vested as of the date of exercise; or (2) a quantity of  100  Options.  

	 	
An
Option may not be exercised for fractional shares.  

	 	
The
exercise of a portion of the Options Granted shall not cause the expiration, termination
or cancellation of the remaining unexercised Options held by the Trustee on behalf of the
Participant.  

	7.4  	MANNER
OF EXERCISE  

	 	
An
Option may be exercised by and upon the fulfillment of the following:  

	 	(A) 	Notice
of Exercise 

	 	
The
signing by the Participant, and delivery to both the Company (at its principal office)
and the Trustee (if the Options are held by a Trustee), of an exercise notice form as
prescribed by the Administrator, including but not limited to: (i) the identity of the
Participant, (ii) the number of Options to be exercised, and (iii) the Exercise Price to
be paid (the “Notice of Exercise”).  

	 	(B) 	Exercise
Price 

	 	
The
payment by the Participant to the Company, in such manner as shall be determined by the
Administrator, of the Exercise Price with respect to all the Options exercised, as set
forth in the Notice of Exercise.  

	 	(C) 	Allocation
of Shares 

	 	
Upon
the delivery of a duly signed Notice of Exercise and the payment to the Company of the
Exercise Price with respect to all the Options specified therein, the Company shall issue
the Underlying Shares to the Trustee (according to the applicable Holding Period) or to
the Participant, as the case may be. 

	 	(D) 	Expenses 

	 	
All
costs and expenses including broker fees and bank commissions, derived from the exercise
of Options or Underlying Shares, shall be borne solely on the Participant.  

8

	8.  	WAIVER
OF OPTION RIGHTS  

	 	
At
any time prior to the expiration of any Granted (but unexercised) Option, a Participant
may waive his rights to such Option by a written notice to the Company’s principal
office. Such notice shall specify the number of Options Granted, which the Participant
waives, and shall be signed by the Participant.  

	 	
Upon
receipt by the Company of a notice of waiver of such rights, such Options shall expire
and shall become available for future Grants and Allocations under the Plan.  

	9.  	TERM
OF THE OPTIONS  

	 	
Unless
earlier terminated pursuant to the provisions of this Plan, all granted but unexercised
Options shall expire and cease to be exercisable at 5:00 p.m. Israel time on the  8th  anniversary
of the Commencement Date of such Options.  

	10.  	TERMINATION
OF EMPLOYMENT  

	10.1  	TERMINATION
OF EMPLOYMENT  

	 	
If
a Participant ceases to be an employee, director, officer or Consultant of the Company or
Affiliate for any reason (“Termination of Employment”) other than death,
Retirement, Disability or Cause, then any vested but unexercised Options on the date of
Termination of Employment (as shall be determined by the Company or Affiliate, in its
sole discretion), Allocated on the Participant’s behalf (“Exercisable Options”)
may be exercised, if not previously expired, not later than the earlier of (i)  90  days
after the date of Termination of Employment; or (ii) the Term of the Options.  

	 	
All
other Granted Options for the benefit of Participant shall expire upon the date of
Termination of Employment.  

	10.2  	TERMINATION
FOR CAUSE  

	 	
In
the event of Termination of Employment of a Participant for Cause, the Participant’s
right to exercise any unexercised Options, Granted to such Participant, whether vested or
not on the date of Termination of Employment, shall cease as of such date of Termination
of Employment, and the Options shall thereupon expire.  

	 	
If
subsequent to the Participant’s Termination of Employment, but prior to the exercise
of Options Granted to such Participant, the Administrator determines that either prior or
subsequent to the Participant’s Termination of Employment, the Participant engaged
in conduct which would constitute Cause, then the Participant’s right to exercise
the Options Granted to such Participant shall immediately cease upon such determination
and the Options shall thereupon expire.  

	 	
The
determination by the Administrator as to the occurrence of Cause shall be final and
conclusive for all purposes of this Plan.  

9

	10.3  	TERMINATION
BY REASON OF DEATH, RETIREMENT, OR DISABILITY  

	 	
In
the event of Termination of Employment of a Participant by reason of death, Retirement,
or Disability, any vested but unexercised Options shall be exercisable in the case of
death, by his or her estate, personal representative or beneficiary, or in the case of
Retirement or Disability, by the Participant or his or her personal representative (as
the case may be), until the earlier of (i)  180  days after the date of Termination
of Employment; or (ii) the Term of the Options.  

	 	
All
other Granted Options for the benefit of Participant shall expire upon the date of
Termination of Employment.  

	10.4  	EXCEPTIONS  

	 	
In
special circumstances, pertaining to the Termination of Employment of a certain
Participant, the Administrator may in its discretion decide to extend any of the periods
stated above in Sections 10.1-10.3.  

	10.5  	TRANSFER
OF EMPLOYMENT OR SERVICE  

	 	
Participant’s
right to Options or the exercise thereof that were Granted to him or her under this Plan,
shall not be terminated or expire solely as a result of the fact that the Participant’s
employment or service as an employee, officer, director or Consultant changes from the
Company to an Affiliate or vice versa.  

	11.  	OPTIONS
AND TAX PROVISIONS  

	 	
All
Options under this Plan shall be Granted in accordance with one of the Tax Provisions as
follows:  

	 	— 	The
Company may Grant Options to Israeli Participants in accordance with the provisions of
Section 102 and the Rules.  

	 	— 	The
Company may Grant Options to Non-Qualified Israeli Participants in accordance with the
provisions of Section 3(i).  

	11.1  	TAX
PROVISION SELECTION  

	 	
The
Company shall elect under which Tax Provision each Option is Granted in accordance with
any applicable Law and its sole discretion – i.e. the Company shall elect if to
Grant Options to Participants under one of the three Section 102 Tax Tracks, or under the
provisions of Section 3i. The Company shall notify each Participant in the Grant Letter,
under which Tax Provision the Options are Granted and, if applicable, under which Section
102 Tax Track, each Option is Granted.  

	11.2  	SECTION
102 TRUSTEE TAX TRACKS  

	 	
If
the Company elects to Grant Options to Israeli Participants through (i) the Capital Gains
Track Through a Trustee, or (ii) the Income Tax Track Through a Trustee, then, in
accordance with the requirements of Section 102, the Company shall appoint a Trustee who
will hold in trust on behalf of each Israeli Participant the Allocated Options and the
Underlying Shares issued upon exercise of such Options in trust on behalf of each Israeli
Participant.  

10

	 	
The
Holding Period for the Options will be as follows:  

	 	(A) 	The
Capital Gains Tax Track Through a Trustee – if the Company
                    elects to Allocate the Options according to the provisions of this
track, then                     the Holding Period will be: 24 months from the date of
Allocation; or such                     period as may be determined in any amendment of
Section 102. 

	 	(B) 	Income
Tax Track Through a Trustee – if the Company elects to
                    Allocate Options according to the provisions of this track, then the
Holding                     Period will be 12 months from the date of Allocation; or such
period as may be                     determined in any amendment of Section 102. 

	 	
Subject
to Section 102 and the Rules, Israeli Participants shall not be able to receive from the
Trustee, nor shall they be able to sell or dispose of Underlying Shares before the end of
the applicable Holding Period. If a Participant sells or removes the Underlying Shares
from the Trustee before the end of the applicable Holding Period (“Breach”),
the Participant shall pay all applicable taxes imposed on such Breach by Section 7 of the
Rules.  

	 	
In
the event of a distribution of rights, including an issuance of bonus shares, in
connection with Options originally Allocated (the “Additional Rights”), all
such Additional Rights shall be Allocated and/or issued to the Trustee for the benefit of
Israeli Participants, and shall be held by the Trustee for the remainder of the Holding
Period applicable to the Options originally Allocated. Such Additional Rights shall be
treated in accordance with the provisions of the applicable Tax Track.  

	11.3  	INCOME
TAX TRACK WITHOUT A TRUSTEE  

	 	
If
the Company elects to Grant Options to Israeli Participants according to the provisions
of this track, then the Options will not be subject to a Holding Period. However, upon
exercise of Options under this Tax Track, the Trustee shall hold such Underlying Shares
for the benefit of the Israeli Participant in accordance with the provisions of Section
15 of this Plan.  

	11.4  	CONCURRENT
CONDITIONS  

	 	
The
Holding Period of Section 102, if any, is in addition to the vesting period as specified
in Section 7.2 of the Plan. The Holding Period and vesting period may run concurrently,
but neither is a substitute for the other, and each are independent terms and conditions
for Options Granted.  

11

	11.5  	TRUST
AGREEMENT  

	 	
The
terms and conditions applicable to the trust relating to the Tax Track selected by the
Company, as appropriate, shall be set forth in an agreement signed by the Company and the
Trustee (the “Trust Agreement”).  

	12.  	TERM
OF SHARES HELD IN TRUST  

	 	
No
Underlying Shares or Additional Rights issued by the Company to the Trustee, shall be
held by the Trustee on behalf of a Participant for a period longer than  10  years
after the end of the Term of the Options. The Administrator shall instruct the Trustee as
to the transfer of these Shares.  

	13.  	RIGHTS
AS A SHAREHOLDER  

	 	
Unless
otherwise specified in the Plan, a Participant shall have all rights as a shareholder
with respect to Shares issued under this Plan.  

	 	
The
Participants shall be entitled to receive any cash dividend paid to the shareholders of
the Company with respect to Underlying Shares issued to them under this Plan. Payments of
such dividend to the Participants shall be subject to any required tax being withheld or
otherwise deducted by the Trustee or the Company, as agreed between the Company and the
Trustee.  

	14.  	NO
SPECIAL EMPLOYMENT RIGHTS  

	 	
Nothing
contained in this Plan shall confer upon any Participant any right with respect to the
continuation of employment by or service to the Company or Affiliate or to interfere in
any way with the right of the Company or Affiliate, to terminate such employment or
service or to increase or decrease the compensation of the Israeli Participant.  

	 	
No
Participant shall have any claim or demand with respect to any of the Options, except
according to the specific terms of the Grant Letter provided to him or her by the
Company.  

	15.  	RESTRICTIONS
ON SALE OF OPTIONS AND SHARES  

	15.1  	OPTIONS  

	 	
Options
may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of,
except by will or the laws of descent.  

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	15.2  	SHARES  

	 	
Unless
otherwise determined by the Administrator, Underlying Shares may not be assigned,
transferred, pledged, hypothecated or otherwise disposed of, except as stated below in
this Section 15.  

	15.3  	ACCELERATION
PROVISION  

	 	
The
Administrator, in its sole discretion, may decide to add a provision in certain Grant
Letters, according to which in case of a Merger or IPO, all or some of the unvested
Options, shall automatically accelerate.  

	15.4  	LOCK
UP  

	 	
Notwithstanding
the Holding Period, in the event of any registration of the Company’s shares on any
stock exchange, at the request of the underwriters or if required under applicable law
and/or by any governmental authority, the Administrator may determine that the Underlying
Shares issued pursuant to the exercise of Options may be subject to a lock-up period, or
such other period of time as may be recommended by the Company’s Board of Directors,
during which time Participants shall not be allowed to sell Shares.  

	16.  	TAX
MATTERS  

	 	
This
Plan shall be governed by, and shall conform with and be interpreted so as to comply
with, the requirements of the Tax Ordinance and any written approval from any relevant
Tax Authorities. All tax consequences under any applicable law which may arise from the
Grant or Allocation of Options, from the exercise thereof or from the holding or sale of
Underlying Shares (or other securities issued under the Plan) by or on behalf of the
Participant, shall be borne solely by the Participant. The Participant shall indemnify
the Company and/or Affiliate, as the case may be, and hold them harmless, against and
from any liability for any such tax or any penalty, interest or indexing.  

	 	
If
the Company elects to Allocate Options according to the provisions of the Income Tax
Track Without a Trustee (Section 11.3 of this Plan), and if prior to the exercise of any
and/or all of these Options, such Israeli Participant ceases to be an employee, director,
or officer of the Company or Affiliate, the Israeli Participant shall deposit with the
Company a guarantee or other security as required by law, in order to ensure the payment
of applicable taxes upon the Exercise of such Options.  

13

	17.  	WITHHOLDING
TAXES  

	 	
Whenever
an amount with respect to withholding tax relating to Options Granted to a Participant
and/or Underlying Shares issued upon the exercise thereof is due from the Participant
and/or the Company and/or an Affiliate, the Company and/or an Affiliate shall have the
right to demand from a Participant such amount sufficient to satisfy any applicable
withholding tax requirements related thereto, and whenever Shares or any other non-cash
assets are to be delivered pursuant to the exercise of an Option, or transferred
thereafter, the Company and/or an Affiliate shall have the right to require the
Participant to remit to the Company and/or to the Affiliate, or to the Trustee an amount
in cash sufficient to satisfy any applicable withholding tax requirements related
thereto. If such amount is not timely remitted, the Company and/or the Affiliate shall
have the right to withhold or set-off (subject to Law) such Shares or any other non-cash
assets pending payment by the Participant of such amounts.  

	 	
With
regard to Options Granted to Israeli Participants – until all taxes have been paid
in accordance with Rule 7 of the Section 102 Rules, Options and/or Underlying Shares may
not be sold, transferred, assigned, pledged, encumbered, or otherwise willfully
hypothecated or disposed of, and no power of attorney or deed of transfer, whether for
immediate or future use may be validly given. Notwithstanding the foregoing, the Options
and/or Underlying Shares may be validly transferred in accordance with Section 20 below,
provided that the transferee thereof shall be subject to the provisions of Section 102
and the Section 102 Rules as would have been applicable to the deceased Israeli
Participant were he or she to have survived.  

	18.  	NO
TRANSFER OF OPTIONS  

	 	
The
Trustee shall not transfer Options to any third party, including a Participant, except in
accordance with instructions received from the Administrator.  

	19.  	TRANSFER
OF RIGHTS UPON DEATH  

	 	
No
transfer of any right to an Option or Underlying Share issued upon the exercise thereof by
will or by the laws of descent shall be effective to bind the Company unless the Company
shall have been furnished with the following signed and notarized documents: 

	 	(A) 	A
written request for such transfer and a copy of the legal documents creating
                    and confirming the right of the person acting with respect to the
                    Participant’s estate and of the transferee; 

	 	(B) 	A
written consent by the transferee to pay any amounts in connection with the
                    Options and Underlying Shares any payment due according to the
provisions of the                     Plan and otherwise abide by all the terms of the
Plan; and 

	 	(C) 	any
such other evidence as the Administrator may deem necessary to establish the
                    right to the transfer of the Option or Underlying Share issued upon
the exercise                     thereof and the validity of the transfer. 

14

	20.  	NO
RIGHT OF OTHERS TO OPTIONS  

	 	
Subject
to the provisions of the Plan, no person other than the Participant shall have any right
with respect to Options Granted to the Participant’s under the Plan.  

	21.  	EXPENSES
AND RECEIPTS  

	 	
The
expenses incurred in connection with the administration and implementation of the Plan
(including any applicable stamp duty) shall be borne by the Company. Any proceeds
received by the Company in connection with the exercise of any Option may be used for
general corporate purposes.  

	22.  	REQUIRED
APPROVALS  

	 	
The
Plan is subject to the receipt of all approvals required under the Tax Ordinance, and the
Law.  

	23.  	APPLICABLE
LAW  

	 	
This
Plan and all documents delivered or executed by the Company or Affiliate in connection
herewith shall be governed by, and construed and administered in accordance with the Law.  

	24.  	TREATMENT
OF PARTICIPANTS  

	 	
There
is no obligation for uniformity of treatment of Participants.  

	25.  	NO
CONFLICTS  

	 	
In
the event of any conflict between the terms of the Plan and the Grant Letter, the Plan
shall prevail, unless the Grant Letter stated specifically that the conflicting provision
in the Grant Letter shall prevail.  

	26.  	PARTICIPANT
UNDERTAKINGS  

	 	
By
entering into this Plan, the Participant shall (1) agree and acknowledge that he or she
have received and read the Plan and the Grant Letter; (2) undertake all the provisions
set forth in: Section 3i or Section 102 as applicable (including provisions regarding the
applicable Tax Track that the Company has selected), the Plan, the Grant Letter and the
Trust Agreement (if applicable); and (3) if the Options are Granted under Section 102,
the Israeli Participant shall undertake that subject to the provisions of Section 102 and
the Rules, he or she shall not to sell or release the Underlying Shares from trust before
the end of the Holding Period (if any).  

158-K

Exhibit 10.2  

THIS GRANT LETTER, THE OPTION AND THE
SECURITIES ISSUABLE UPON EXERCISE OF THIS OPTION HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE, AND WILL BE
ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “1933 ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR BASED ON AN OPINION
OF COUNSEL SATISFACTORY, IN FORM AND SUBSTANCE, TO THE COMPANY THAT SUCH REGISTRATION IS
NOT REQUIRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
1933 ACT AND IN ACCORDANCE WITH REGULATION S, AS PROMULGATED BY THE SECURITIES AND
EXCHANGE COMMISSION (“REGULATION S”) APPLICABLE FEDERAL, STATE, AND FOREIGN
SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN COMPLIANCE WITH THE 1933 ACT. 

ACRO INC. 

GRANT LETTER 

Date:____________  

To the Participant,
____________, ID ____________ 

	1.  	You
are hereby notified that on ___________ the Board of Directors of the Acro
               Inc. (the “Company”) has resolved that you shall be granted
               ___________ options, each to purchase one Common Stock par value of
US$0.001 of                the Company at an exercise price per share of US$ ____ (the
               “Options”). 

	2.  	The
Options, shares resulting from their exercise (“Shares”)
               and any additional rights including share bonus that shall be distributed
to you                in connection with the Options (“Additional Rights”)
shall be                granted on your behalf to the Trustee – the ESOP Trust
Company (the                “Trustee”) and shall be taxed in accordance
with Section 3(i)                of the Israeli Income Tax Ordinance, 1961 (“Section
3(i)”). As                a result, you may be required to pay taxes upon the
exercise of the Options,                even if the Shares are not sold upon such
exercise. 

	3.  	Unless
otherwise determined by the Company’s Board of Directors, all                Options
granted to you on this date shall, subject to your continued service to
               the Company, become vested and in accordance with the following vesting
               schedule: 

	 	
[_______________]  

	4.  	The
Options may be exercised by: (i) sending the Company (at its principal
               office) an exercise notice which includes the number of Options you wish
to                exercise; and (ii) payment (by cash or check) of the exercise price to
be paid. 

	5.  	All
tax consequences under any applicable law which may arise from the grant of
               the Options, from the exercise thereof or from the holding or sale of the
Shares                deliverable upon exercise (or other securities issued in connection
of the                Options) shall be borne solely by you. 

	6.  	You
shall not have any rights as a shareholder with respect to the Options,
               until such time as the Options are exercised into Shares and registered in
your                name in the Company’s register of shareholders. 

	7.  	The
Options are granted to you on condition that you sign the Approval of the
               Participant as detailed below. 

	______________________ 	 	______________________
	Acro Inc. 	 	Date

2

APPROVAL OF THE
PARTICIPANT:  

I hereby confirm that: 

	1.  	I
read the Grant Letter, I understand and accept its terms and conditions. I am
               aware of the fact that the Company agrees to grant me the Options based on
my                confirmation; 

	2.  	I
hereby agree that whenever an amount with respect to withholding tax relating
               to Options granted to me and/or underlying Shares issued upon the exercise
               thereof is due from me and/or the Company, the Company shall have the
right to                demand from me such amount sufficient to satisfy any applicable
withholding tax                requirements related thereto, and whenever Shares or any
other non-cash assets                are to be delivered pursuant to the exercise of an
Option, or transferred                thereafter, the Company shall have the right to
require from me to remit to the                Company an amount in cash sufficient to
satisfy any applicable withholding tax                requirements related thereto. If
such amount is not timely remitted, the Company                shall have the right to
withhold or set-off (subject to applicable law) such                Shares or any other
non-cash assets pending payment by me of such amounts; 

	3.  	By
signing this letter, I hereby give an irrevocable proxy to the representative
               appointed by the Company’s Board of Directors to vote any Shares that
will                be issued to me following an exercise of Option granted to me under
the Grant                Letter. The proxy shall be valid until consummation of an IPO by
the Company; 

	4.  	I
understand the provisions of Section 3(i) and the applicable tax implications
               of this grant of Options;  

	5.  	Acknowledgements

	 	
I
hereby acknowledge and agree that:  

	 	(a) 	none
of the Options or Shares have been registered under the 1933 Act, or under           any
state securities or “blue sky” laws of any state of the United
          States, and, unless so registered, may not be offered or sold in the United
          States or, directly or indirectly, except in accordance with Regulation S,
          pursuant to an effective registration statement under the 1933 Act, or based on
          an opinion of counsel satisfactory, in form and substance, to the Company that
          such registration is not required pursuant to an exemption from the
registration           requirements of the 1933 Act; 

	 	(b) 	I
acknowledge that the Company has not undertaken, and will have no obligation,
          to register any of the Options or Shares under the 1933 Act; 

	 	(c) 	I
represent and warrant that I am an Accredited Investor, as the term is defined
          in Regulation D under the 1933 Act; 

	 	(d) 	the
decision to execute this Grant letter and receive the Options hereunder has           not
been based upon any oral or written representation as to fact or otherwise           made
by or on behalf of the Company; 

3

	 	(e) 	no
securities commission or similar regulatory authority has reviewed or passed           on
the merits of the Options or Shares; 

	 	(f) 	I
am resident in the jurisdiction identified in my address set forth below; 

	 	(g) 	there
is no government or other insurance covering the Options or Shares; 

	 	(h) 	there
are risks associated with the exercise of the Options into Shares,           including
but not limited to risks associated with investment in a high-tech           company; 

	 	(i) 	I
have had a reasonable opportunity to ask questions of and receive answers from
          the Company in connection with the grant of the Options hereunder, and to
obtain           additional information, to the extent possessed or obtainable without
          unreasonable effort or expense, necessary to verify the accuracy of the
          information about the Company; 

	 	(j) 	the
books and records of the Company were available upon reasonable notice for
          inspection, subject to certain confidentiality restrictions, by me during
          reasonable business hours at its principal place of business, and all
documents,           records and books in connection with the grant of the Options
hereunder have           been made available for inspection by me, my lawyer and/or
advisor(s); 

	 	(k) 	the
Company will refuse to register any transfer of the Options or Shares not           made
in accordance with the provisions of this Regulation S, pursuant to an
          effective registration statement under the 1933 Act or not based upon an
opinion           of counsel satisfactory, in form and substance, to the Company pursuant
to an           available exemption from the registration requirements of the 1933 Act; 

	 	(l) 	I
have been advised to consult my own legal, tax and other advisors with respect
          to the merits and risks of the exercise of the Options and with respect to
          applicable resale restrictions, and I am solely responsible (and the Company is
          not in any way responsible) for compliance with: 

	 	(i) 	any
applicable laws of the jurisdiction in which the I am a resident in           connection
with the grant of the Options hereunder, and  

	 	(ii) 	applicable
resale restrictions.  

	6.  	Representations
and Warranties

	 	
I
hereby represent and warrant to the Company that:  

	 	(a) 	I
have the legal capacity and competence to enter into and execute this Grant
                    letter and to take all actions required pursuant hereto; 

	 	(b) 	I
will exercise the Options into Shares for investment only and not with a view
                    to resale or distribution and, in particular, I have no intention to
distribute                     either directly or indirectly any of the Options or
Shares; 

	 	(c) 	I
am receiving the Options as principal for my own account for investment
                    purposes only, and not with a view to, or for, resale, distribution
or                     fractionalization thereof, in whole or in part, and no other
person has a direct                     or indirect beneficial interest in such Options
or Shares; 

4

	 	(d) 	I
am not an underwriter of, or dealer in, the common shares of the Company, nor
                    am I participating, pursuant to a contractual agreement or otherwise,
in the                     distribution of the Options or Shares; 

	 	(e) 	I
am not aware of any advertisement of any of the Options; and 

	 	(f) 	no
person has made to me any written or oral representations; 

	 	(i) 	that
any person will resell or repurchase any of the Options or Shares;  

	 	(ii) 	that
any person will refund the exercise price of any of the Options;  

	 	(iii) 	as
to the future price of value of any of the Options or Shares;  

	 	(iv) 	that
any of the Options or Shares will be listed and posted for trading on any
                    stock exchange or automated dealer quotation system or that
application has been                     made to list and post any of the Options of the
Company on any stock exchange or                     automated dealer quotation system;
or  

	 	(v) 	as
to the tax or accounting consequences of grant or exercise of the Options, or
                    as to profits, losses or cash flow which may be received or sustained
as a                     result of Options or Shares.  

	 	(g) 	I
am not a “U.S. person” as that term is defined under Regulation S. 

	 	(h) 	On
the date hereof, I am outside the United States, and the grant of the Options
                    was not made to me in the U.S. 

	 	(i) 	I
am receiving the Options for my own account and not for the account or benefit
                    of a “U.S. person” (as defined in Regulation S), or is a
U.S. person                     who purchased securities in a transaction that did not
require registration                     under the 1933 Act, and the sale has not been
prearranged with a buyer in the                     United States. 

	 	(j) 	I
acknowledge that I have not received the Options as a result of, and I will
                    not engage in, any “directed selling efforts” (as defined
in                     Regulation S under the 1933 Act) in the United States in respect
of the Options                     and the Shares resulting from their exercise, which
would include any activities                     undertaken for the purpose of, or that
could reasonably be expected to have the                     effect of, conditioning the
market in the United States for the resale of the                     Options and the
Shares resulting from their exercise; provided, however, that I                     may
sell or otherwise dispose of the Options and the Shares resulting from their
                    exercise pursuant to registration under the 1933 Act and any
applicable state                     and provincial securities laws or under an exemption
from such registration                     requirements and as otherwise provided herein. 

	 	(k) 	The
statements made by me herein are true and correct and are confirmed hereby,
                    and the Company shall be entitled to rely thereon. 

5

	7.  	Legending
of the Options and the Shares

	 	(a) 	I
hereby acknowledge that upon the issuance thereof, and until such time as the
                    same is no longer required under the applicable securities laws and
regulations,                     the certificates representing the Options and the Shares
will bear a legend in                     substantially the following form: 

THESE SECURITIES HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY
STATE AND HAVE BEEN ISSUED IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY
NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR BASED ON AN OPINION OF COUNSEL SATISFACTORY, IN FORM AND SUBSTANCE, TO
THE COMPANY THAT
SUCH REGISTRATION IS NOT REQUIRED PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT IN ACCORDANCE WITH APPLICABLE FEDERAL, STATE, AND
FOREIGN SECURITIES LAWS, INCLUDING BUT NOT LIMITED TO REGULATION S AS PROMULGATED BY THE
SECURITIES AND EXCHANGE COMMISSION. HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY
NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. 

	 	(b) 	I
hereby acknowledge and agree to the Company making a notation on its records
                    or giving instructions to the registrar and transfer agent of the
Company in                     order to implement the restrictions on transfer set forth
and described in this                     Grant Letter. 

	 8. 	I
hereby confirm that I read this letter thoroughly, received all the
               clarifications and explanations I requested, I understand the contents of
this                letter and the obligations I undertake in signing it. 

	——————————————

Name of Participant	——————————————

Signature	——————————————

Date

Address: 

6

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