Document:

Exhibit 10.9

   

 

 

KITOV PHARMACEUTICALS HOLDINGS LTD.

 

2016 EQUITY-BASED
INCENTIVE PLAN

  

 

 

1.         PURPOSE; TYPES OF AWARDS; CONSTRUCTION.

 

1.1      Purpose.
The purpose of this 2016 Equity-Based Incentive Plan (as may be amended, the "Plan") is to afford an incentive to eligible
employees, directors, officers, consultants, advisors, and any other person or entity whose services are considered valuable to
Kitov Pharmaceuticals Holdings Ltd., an Israeli company (the "Company"), or any Affiliate of the Company, which now exists
or hereafter is organized or acquired by the Company, to increase their efforts on behalf of the Company or an Affiliate and to
promote the success of the Company's business, by providing such Grantees with opportunities to acquire a proprietary interest
in the Company by the grant of Awards pursuant to the Plan.

 

1.2. Types of Grants. The Plan is intended
to enable the Company to issue Awards under varying tax regimes, including:

 

(i) pursuant and subject to the provisions
of Section 102 of the Ordinance, and all regulations and interpretations adopted thereunder, including the Income Tax Rules (Tax
Benefits in Stock Issuance to Employees) 5763-2003 (the "Rules") or such other rules published by the Israeli Income
Tax Authorities (the "ITA") (such Awards, "102 Awards"). 102 Awards may either be granted to a Trustee or without
a trustee;

 

(ii) pursuant to Section 3(9) of the Ordinance
(such Awards, "3(9) Awards");

 

(iii) Incentive Stock Options within the
meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted United States federal tax statute,
as amended from time to time, to be granted to Grantees who are deemed to be residents of the U.S. for purposes of taxation;

 

(iv) Nonqualified Stock Options to be granted
to Grantees who are deemed to be residents of the U.S. for purposes of taxation; and

 

(v) other stock-based Awards pursuant to
Section 13 hereof.

 

In addition to the issuance of Awards under
the relevant tax regimes in the United States of America and the State of Israel, the Plan contemplates issuances to Grantees in
other jurisdictions with respect to which the Committee is empowered to make the requisite adjustments in the Plan and set forth
the relevant conditions in the Company’s agreement with the Grantee in order to comply with the requirements of the tax regimes
in any such jurisdictions.

 

The Plan contemplates the issuance of Awards
by the Company, both as a private company and as a publicly traded company.

 

1.3. Construction. To the extent any provision
herein conflict with the conditions of any relevant tax law or regulation which are relied upon for tax relief in respect of a
particular Award to a Grantee, the provisions of such law or regulation shall prevail over those of the Plan, and the Committee
is empowered hereunder to interpret and enforce the said prevailing provisions.

 

2. DEFINITIONS.

 

2.1. Terms Generally. The definitions of
terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including"
shall be deemed to be followed by the phrase "without limitation." Unless the context requires otherwise (i) any definition
of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such
amendments, restatements, supplements or modifications set forth therein or herein), (ii) references to any law, constitution,
statute, treaty, regulation, rule or ordinance, including any section or other part thereof shall refer to it as amended from time
to time and shall include any successor thereof, (iii) reference to a person shall means an individual, partnership, corporation,
limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision
thereof, (iv) the words "herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Plan in its entirety and not to any particular provision hereof and (v) all references herein to Sections
shall be construed to refer to Sections of this Plan.

 

     

     

    

  

2.2. Defined Terms. The following terms
shall have the meanings ascribed to them in this Section ‎ 2:

 

2.2.1. "Affiliate" shall have
the meaning assigned thereto in Rule 405 of Regulation C under the Securities Act. For the purpose of Options granted pursuant
to 102 Awards, "Affiliate" shall also mean an "employing company" within the meaning of Section 102(a) of the
Ordinance.

 

2.2.2. “ADS”
means an American Depositary Share of the Company.

 

2.2.2.A "Applicable Law" shall
mean any applicable law, rule, regulation, statute, pronouncement, policy, interpretation, judgment, order or decree of any federal,
provincial, state or local governmental, regulatory or adjudicative authority or agency, of any jurisdiction, and the rules and
regulations of any stock exchange or trading system on which the Shares are then traded or listed.

 

2.2.3. "Award" shall mean any
Option, Restricted Shares, RSU or any other Share-based award, granted to a Grantee under the Plan and any Share issued pursuant
to the exercise thereof.

 

2.2.4. "Board" shall mean the
Board of Directors of the Company.

 

2.2.5. "Code" shall mean the
United States Internal Revenue Code of 1986, as amended.

 

2.2.6. "Committee" shall mean
a committee established by the Board to administer the Plan, subject to Section ‎ 3.1; the Compensation Committee or the Audit
Committee of the Company may fulfill this role.

 

2.2.7. "Companies Law" shall
mean the Israel Companies Law-1999 and the regulations promulgated thereunder, all as amended from time to time.

 

2.2.8. "Controlling Shareholder"
shall have the meaning set forth in Section 32(9) of the Ordinance.

 

2.2.9. "Disability" shall mean
(i) the inability of a Grantee to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period
of not less than 12 months, as determined by a medical doctor satisfactory to the Committee or (ii) if applicable, a "permanent
and total disability" as defined in Section 22(e)(3) of the Code, or Section 409A(a)(2)(c)(i) of the Code, as amended from
time to time.

 

2.2.10. "Employee" shall mean
a person who is employed by the Company or any of its Affiliates, including, for the purpose of Section 102, an individual who
is serving as an "office holder" as defined under the Companies Law, but excluding any Controlling Shareholder.

 

2.2.11. "Exercise Period" shall
mean the period, commencing on the date of grant of an Option, during which an Option shall be exercisable, subject to any vesting
provisions thereof and the termination provisions hereof.

 

2.2.12. "Exercise Price" shall
mean the exercise price for each Share covered by an Option, which in any event shall not be less than such minimum exercise price
as determined under Applicable Law and/or by a competent authority and/or by the Tel Aviv Stock Exchange and/or by the NASDAQ.

 

2.2.13.
"Fair Market Value" per Share as of a particular date shall mean: (i) the closing sales price per Share on the securities
exchange (including, if applicable, the Tel Aviv Stock Exchange or the NASDAQ) on which the Shares are principally traded as quoted
on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal
or such other source as the Committee deems reliable; without derogating
from the above and solely for the purpose of determining the tax liability pursuant to Section 102 of the Ordinance (and in particular
Section 102(b)(3)), if on the date of grant the Company’s shares are listed on any established stock exchange or a national
market system or if the Company’s shares will be registered for trading within ninety (90) days following the date of grant
under the 102 Capital Gains Track, the Fair Market Value of a Share on its date of grant shall be determined in accordance with
the average value of the Company’s shares during the thirty (30) trading days immediately preceding the date of grant (if
the Company's shares are listed on the date of grant) or during the thirty (30) trading days immediately following the date of
registration for trading (if the Company's shares will be listed within ninety (90) days following the date of grant), as the case
may be (ii) if the Shares are then quoted in an over-the-counter market, the average of the closing bid and asked prices for the
Shares in that over-the-counter market on the last market trading day prior to the day of determination; (iii) if the Shares are
not then listed on a securities exchange or quoted in an over-the-counter market, such value as the Committee, in its sole discretion,
shall determine, with full authority to determine the method for making such determination, and which determination shall be conclusive
and binding on all parties, and shall be made after such consultations with outside legal, accounting and other experts as the
Committee may deem advisable; provided, however, that with respect to Nonqualified Stock Options, the Fair Market Value of the
Shares shall be determined in a manner that satisfies the applicable requirements of Section 409A of the Code, and with respect
to Incentive Stock Options, the Fair Market Value shall be determined in a manner that satisfies the applicable requirements of
Section 422 of the Code, subject to Code Section 422(c)(7). The Committee shall maintain a written record of its method of determining
such value. If the Shares are listed or quoted on more than one established stock exchange or over-the-counter market, the Committee
shall determine the principal such exchange or market and utilize the price of the Shares on that exchange or market (determined
as per the method described in clauses (i) or (ii) above, as applicable) for the purpose of determining Fair Market Value.

 

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2.2.14. "Grantee" shall mean
an employee, director, officer, consultant, advisor, and any other person or entity who provides with services to the Company or
to any Affiliate who was granted an Award under the Plan.

 

2.2.15. "Non-Employee" shall
mean a Grantee who is not an Employee.

 

2.2.16. "Nonqualified Stock Option"
shall mean any Option granted to a Grantee who is deemed to be a resident of the U.S. for purposes of taxation, which Option is
not designated as, or does not meet the conditions for, an Incentive Stock Option.

 

2.2.17. "Options" shall mean
all options to purchase Shares granted as 102 Awards, 3(9) Awards, Incentive Stock Options and Non-Qualified Stock Options, as
well as options to purchase Shares issued under other tax regimes.

 

2.2.18. "Ordinance" shall mean
the Israeli Income Tax Ordinance (New Version) 1961, and the regulations promulgated thereunder, all as amended from time to time.

 

2.2.19. "Parent" shall mean any
company (other than the Company), which now exists or is hereafter organized, (i) in an unbroken chain of companies ending with
the Company if, at the time of granting an Award, each of the companies (other than the Company) owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one of the other companies in such chain, or (ii) if
applicable, as defined in Section 424(e) of the Code.

 

2.2.20. "Retirement" shall mean
a Grantee's retirement pursuant to applicable law or in accordance with the terms of any tax-qualified retirement plan maintained
by the Company or any of its affiliates in which the Grantee participates.

 

2.2.21. "Securities Act" shall
mean the U.S. Securities Act of 1933, as amended.

 

2.2.22. "Shares" shall mean Ordinary
Shares, no par value of the Company, and/or an ADS, as the context may require, such other
securities as may be substituted for such Share as set forth in this Plan, or shares of such other class of shares of the
Company as shall be designated by the Board in respect of the relevant Award.

 

2.2.23. "Subsidiary" shall mean
any company (other than the Company), which now exists or is hereafter organized or acquired by the Company, (i) in an unbroken
chain of companies beginning with the Company if, at the time of granting an Award, each of the companies other than the last company
in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock
in one of the other companies in such chain, or (ii) if applicable, as defined in Section 424(f) of the Code.

 

2.2.24. "Ten Percent Shareholder"
shall mean a Grantee who, at the time an Incentive Stock Option is granted, owns shares possessing more than ten percent (10%)
of the total combined voting power of all classes of shares of the Company or any Parent or Subsidiary.

 

2.2.25. "Trustee" shall mean
the trustee appointed by the Committee or the Board, as the case may be, to hold the respective Options and/or Shares (and, in
relation with 102 Awards, approved by the Israeli tax authorities), if so appointed.

 

3. ADMINISTRATION.

 

3.1. To the extent permitted under Applicable
Law and the Memorandum of Association, Amended and Restated Articles of Association and any other governing document of the Company,
the Plan shall be administered by the Committee. In the event that the Board does not create a committee to administer the Plan,
the Plan shall be administered by the Board in its entirety. In the event that an action necessary for the administration of the
Plan is required under law to be taken by the Board, then such action shall be so taken by the Board. In any such event, all references
herein to the Committee shall be construed as references to the Board.

 

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3.2. The Committee shall consist of two
or more directors of the Company, as determined by the Board. The Board shall appoint the members of the Committee, it may from
time to time remove members from, or add members to, the Committee, and it shall fill vacancies on the Committee however caused,
provided that the composition of the Committee shall at all times be in compliance with any mandatory requirements of Applicable
Law. The Committee may select one of its members as its Chairman and shall hold its meetings at such times and places as it shall
determine. The Committee may appoint a Secretary, who shall keep records of its meetings and shall make such rules and regulations
for the conduct of its business, as it shall deem advisable and subject to requirements of Applicable Law.

 

3.3. Subject to the terms and conditions
of this Plan and any mandatory provisions of Applicable Law, and in addition to the Committee's powers contained elsewhere in this
Plan, the Committee shall have full authority in its discretion, from time to time and at any time, to determine any of the following,
or to recommend to the Board any of the following if it is not authorized to take such action according to Applicable Law:

 

(i) the identity of eligible Grantees;

 

(ii) grants of Awards and setting the terms
and provisions of Option Agreements (which need not be identical) and any other agreements or instruments under which Awards are
made, including, but not limited to, the number of Shares underlying each Award;

 

(iii) the time or times at which Awards
shall be granted;

 

(iv) the vesting schedule, the vesting
milestones (if applicable), the acceleration thereof and conditions on which Awards may be exercised;

 

(v) the Exercise Price;

 

(vi) the interpretation of the Plan;

 

(vii) prescription, amendment and rescission
of rules and regulations relating to and for carrying out the Plan, as it may deem appropriate;

 

(viii) the Fair Market Value of the Shares;

 

(ix) the tax track (capital gains, ordinary
income track or any other track available under the Section 102 of the Ordinance) for the purpose of 102 Awards; and

 

(x) any other matter which is necessary
or desirable for, or incidental to, the administration of the Plan and any Award thereunder.

 

3.4. Grants of Awards shall be made pursuant
to written notice to Grantees setting forth the terms of the Award. Such notice shall designate the type of Award as one or more
of the following, subject to Applicable Law: (i) a 102 Award granted to a Trustee (either as a 102 Award (capital gain track) with
Trustee or a 102 Award (ordinary income track) with Trustee), (ii) a 102 Award without a Trustee, (iii) a 3(9) Award, (iv) an Incentive
Stock Option, (v) a Nonqualified Stock Option, or (vi) any other type of Award.

 

3.5. Subject to the mandatory provisions
of Applicable Law, the grant of any Award, whether by the Committee or the Board, shall be deemed to include an authorization of
the issuance of Shares upon the due exercise thereof.

 

3.6. The authority granted hereunder includes
the authority to modify Awards to eligible individuals who are foreign nationals or are individuals who are employed outside Israel
to recognize differences in local law, tax policy or custom, in order to effectuate the purposes of the Plan but without amending
the Plan. The Committee shall have the authority to grant, in its discretion, to the holder of an outstanding Award, in exchange
for the surrender and cancellation of such Award, a new Award having an Exercise Price lower than that provided in the Award so
surrendered and canceled and containing such other terms and conditions as the Committee may prescribe in accordance with the provisions
of the Plan or to set a new Exercise Price for the same Award lower than that previously provided in the Award, provided that in
any event the exercise price shall not be less than such minimum exercise price as determined under Applicable Law and/or by a
competent authority and/or by the Tel Aviv Stock Exchange.

 

3.7. All decisions, determination and interpretations
of the Committee shall be final and binding on all Grantees of any Awards under this Plan, unless otherwise determined by the Board.
No member of the Committee shall be liable for any action taken or determination made in good faith with respect to the Plan or
any Award granted hereunder.

 

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4. ELIGIBILITY.

 

4.1. Awards may be granted to Grantees
of the Company or any Affiliate thereof, taking into account the qualification under each tax regime pursuant to which such Awards
are granted. A person who has been granted an Award hereunder may be granted additional Awards, if the Committee shall so determine,
subject to the limitations herein. In determining the persons to whom Awards shall be granted and the number of Shares to be covered
by each Award, the Committee shall take into account the duties of the respective persons, their present and potential contributions
to the success of the Company and such other factors as the Committee shall deem relevant in connection with accomplishing the
purpose of the Plan.

 

4.2. Subject to Applicable Law, 102 Awards
may not be granted to Controlling Shareholders and may only be granted to Employees, including officers and directors, of the Company
or any Affiliate thereof, who are Israeli residents ("Eligible 102 Grantees"). Awards to Eligible 102 Grantees in Israel
shall be 102 Awards. Eligible 102 Grantees may receive only 102 Awards, which may either be grants to a Trustee or grants under
Section 102 without a trustee; provided; however, that a 102 Award granted to an Eligible 102 Grantee who is also a citizen or
resident for U.S. tax purposes may also be deemed an Incentive Stock Option. Unless otherwise permitted by the Ordinance and the
Rules, no 102 Awards to a Trustee may be granted until the expiration of thirty (30) days after the requisite filings under the
Ordinance and the Rules have been appropriately made with the ITA.

 

4.3. Subject to Applicable Law, Non-Employees
who are Israeli residents and are not Eligible 102 Grantees may only be granted 3(9) Awards under this Plan.

 

5. SHARES.

 

The initial number of Shares reserved for
the grant of Awards under the Plan shall be 12,000,000 Ordinary Shares, no par value of the Company or the equivalent number of
ADSs representing such number of Ordinary Shares. All of the Shares reserved for issuance under the Plan may be issued pursuant
to the exercise of Incentive Stock Options. The class of Shares shall be designated by the Board with respect to each Award and
the notice of grant shall reflect such designation. Any Share underlying an Award granted hereunder which has expired, or was cancelled
or terminated or forfeited for any reason without having been exercised, shall be automatically, and without any further action
on the part of the Company or any Grantee, returned to the "pool" of reserved Shares hereunder and shall again be available
for grant for the purposes of this Plan (unless this Plan shall have been terminated) or unless the Board determines otherwise.
Notwithstanding the other provisions of this Section 5, the Board may, subject to any other approvals required under any Applicable
Law, increase or decrease the number of Shares to be reserved under the Plan. Such Shares may, in whole or in part, be authorized
but unissued Shares or Shares that shall have been or may be reacquired by the Company (to the extent permitted pursuant to the
Companies Law) or by a trustee appointed by the Board under the relevant provisions of the Ordinance, the Companies Law or any
equivalent provision. Any Shares that are not subject to outstanding Awards at the termination of the Plan shall cease to be reserved
for the purpose of the Plan, but until termination of the Plan, the Company shall at all times reserve a sufficient number of Shares
to meet the requirements of the Plan.

 

6. TERMS AND CONDITIONS OF OPTIONS.

 

Each Option granted pursuant to the Plan
shall be evidenced by a written agreement between the Company and the Grantee or a written notice delivered by the Company and
accepted by the Grantee (an "Option Agreement"), in such form and containing such terms and conditions as the Committee
shall from time to time approve, which Option Agreement shall comply with and be subject to the following terms and conditions,
unless otherwise specifically provided in such Option Agreement or the terms referred to in Sections ‎ 9 and ‎ 10 below.
For purposes of interpreting this Section‎ 6, a director's service as a member of the Board or the services of an officer,
as the case may be, shall be deemed to be employment with the Company or its Subsidiary or Affiliate.

 

6.1. Number of Shares. Each Option Agreement
shall state the number of Shares covered by the Option.

 

6.2. Type of Option. Each Option Agreement
shall specifically state the type of Option granted thereunder and whether it constitutes an Incentive Stock Option, Nonqualified
Stock Option, 102 Option Award and the relevant track, 3(9) Option Award, and/or otherwise.

 

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6.3. Exercise Price. Each Option Agreement
shall state the Exercise Price. In the case of an Incentive Stock Option, the Exercise Price shall not be less than one hundred
percent (100%) of the Fair Market Value of the Shares covered by the Option on the date of grant or such other price as may be
required pursuant to the Code. For an Incentive Stock Option granted to any Ten-Percent Shareholder, the Exercise Price shall be
no less than 110% of the Fair Market Value of the Shares covered by the Option on the date of grant. The Exercise Price of a Nonqualified
Stock Option shall not be less than 100% of the Fair Market Value of the Shares on the date of grant unless the Committee specifically
indicates that the Option will have a lower Exercise Price and the Option complies with Section 409A of the Code. In the case of
any other Option, the per share Exercise Price shall be equal to the Fair Market Value of the Shares on the date of grant, or such
other price as shall be determined by the Committee, provided, however, that in no event shall the Exercise Price of an Option
be less than the par value of the shares for which such Option is exercisable. Subject to Section‎ 3 and to the foregoing,
the Committee may reduce the Exercise Price of any outstanding Option. The Exercise Price shall also be subject to adjustment as
provided in Section 14 hereof. This Section 6.3 shall not apply to an Option granted pursuant to assumption of, or substitution
for, another option in a manner that complies with Code Section 424(a), whether or not the Option is an Incentive Stock Option.
In any event the exercise price shall not be less than such minimum exercise price as determined under Applicable Law and/or by
a competent authority and/or by the Tel Aviv Stock Exchange.

 

6.4. Manner of Exercise. An Option may
be exercised, as to any or all Shares as to which the Option has become exercisable, by written notice delivered in person or by
mail to the Secretary of the Company or to such other person as determined by the Committee, specifying the number of Shares with
respect to which the Option is being exercised, accompanied by payment of the Exercise Price for such Shares in the manner specified
in the following sentence. Payment for Shares acquired pursuant to Options granted hereunder shall be made in full, upon exercise
of the Options: (i) in immediately available funds, or by certified or bank cashier’s check payable to the Company, (ii)
solely to the extent permitted by Applicable Law and authorized by the Committee, by delivery of Shares to the Company (either
by actual delivery or attestation) having a value equal to the Exercise Price, (iii) solely to the extent permitted by Applicable
Law and authorized by the Committee, by a broker-assisted cashless exercise in accordance with procedures approved by the Committee
under Regulation T as promulgated by the Federal Reserve Board, whereby payment of the Option exercise price or tax withholding
obligations may be satisfied, in whole or in part, with Shares subject to the Option by delivery of an irrevocable direction to
a securities broker (on a form prescribed by the Committee) to sell Shares and to deliver all or part of the sale proceeds to the
Company in payment of the aggregate exercise price and, if applicable, the amount necessary to satisfy the Company’s withholding
obligations prior to the issuance of the Shares subject to the Option, (iv) solely to the extent permitted by Applicable Law and
authorized by the Committee, by delivery of a notice of “net exercise” to the Company, pursuant to which the Company
will reduce the number of Shares issuable upon exercise by the largest whole number of Shares with a Fair Market Value that does
not exceed the aggregate Exercise Price); provided, however, that the Company will accept a cash or other payment from the Participant
to the extent of any remaining balance of the aggregate Exercise Price not satisfied by such reduction in the number of whole shares
to be issued or (v) by any other means approved by the Committee and specified in the Award Agreement, which may include procedures
for cashless exercise. Anything herein to the contrary notwithstanding, if the Committee determines that any form of payment available
hereunder would be in violation of Section 402 of the Sarbanes-Oxley Act of 2002, such form of payment shall not be available.

 

6.5. Term and Vesting of Options. Each
Option Agreement shall provide the vesting schedule for the Option as determined by the Committee. To the extent permitted under
Applicable Law, the Committee shall have the authority to determine the vesting schedule and accelerate the vesting of any outstanding
Option at such time and under such circumstances as it, in its sole discretion, deems appropriate, including, for avoidance of
doubt, acceleration for change of control as such is defined in an agreement with the applicable Grantee. The Option Agreement
may contain performance goals and measurements, and the provisions with respect to any Option need not be the same as the provisions
with respect to any other Option. The Exercise Period of an Option will be 10 years from the date of grant of the Option unless
otherwise determined by the Committee, but subject to the vesting provisions described above and the early termination provisions
set forth in Sections ‎ 6.6 and ‎ 6.7 hereof; provided, however, that in the case of an Incentive Stock Option granted
to a Ten Percent Shareholder, such Exercise Period shall not exceed five (5) years from the date of grant of such Option. At the
expiration of the Exercise Period, all unexercised Options shall become null and void.

 

6.6. Termination.

 

6.6.1. Except as provided in this Section‎
6.6 and in Section‎ 6.7 hereof, an Option may not be exercised unless the Grantee is then in the employ of or maintaining a
director, officer, consultant, advisor or supplier relationship with the Company or a Subsidiary or Affiliate thereof or, in the
case of an Incentive Stock Option, a company or a parent or subsidiary company of such company issuing or assuming the Option in
a transaction to which Section 424(a) of the Code applies, and unless the Grantee has remained continuously so employed or in the
director, officer, supplier, consultant, or advisor relationship since the date of grant of the Option. In the event that the employment
or director, officer or consultant, advisor or supplier relationship of a Grantee shall terminate (other than by reason of death,
Disability or Retirement), all Options of such Grantee that are vested and exercisable at the time of such termination may, unless
earlier terminated in accordance with their terms, be exercised within up to twelve (12) months after the date of such termination
(or such different period as the Committee shall prescribe); provided, however, that if the Company (or the Subsidiary or Affiliate,
when applicable) shall terminate the Grantee’s employment or service for Cause (as defined below) or if, whether or not the
Grantee’s employment is terminated by either party, circumstances arise or are discovered with respect to the Grantee that
would have constituted Cause for termination of his or her employment or service, all Options theretofore granted to such Grantee
(whether vested or not) shall, to the extent not theretofore exercised, terminate on the date of such termination (or on which
such circumstances arise or are discovered, as the case may be) unless otherwise determined by the Committee.

 

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6.6.2. In the case of a Grantee whose principal
employer is a Subsidiary or Affiliate, the Grantee’s employment shall also be deemed terminated for purposes of this Section
‎ 6.6 as of the date on which such principal employer ceases to be such Subsidiary or Affiliate. Notwithstanding anything to
the contrary, the Committee, in its absolute discretion may, on such terms and conditions as it may determine appropriate, extend
the periods for which the Options held by any individual may continue to vest and be exercisable; provided, that such Options may
lose their status as Incentive Stock Options under applicable law and be deemed Nonqualified Stock Options as a result of the modification
of the Option to extend the exercise period and/or in the event that the Option is exercised beyond the later of: (i) three (3)
months after the date of termination of the employment relationship ; or (ii) the applicable period under Section ‎ 6.7 below
with respect to a termination of the employment relationship because of the death, Disability or Retirement of Grantee.

 

6.6.3. For purposes of this Plan, the term
"Cause" shall mean any of the following: (a) fraud, embezzlement or felony or similar act by the Grantee; (b) an act
of moral turpitude by the Grantee, or any act that causes significant injury to the reputation, business, assets, operations or
business relationship of the Company (or a Subsidiary or Affiliate, when applicable); (c) any material breach by the Grantee of
an agreement between the Company or any Subsidiary or Affiliate and the Grantee (including material breach of confidentiality,
non-competition or non-solicitation covenants) or of any duty of the Grantee to the Company or any Subsidiary or Affiliate thereof;
or (d) any circumstances that constitute grounds for termination for cause under the Grantee’s employment, consulting or
service agreement with the Company or Subsidiary or Affiliate, to the extent applicable.

 

6.7. Death, Disability or Retirement of
Grantee. If a Grantee shall die while employed by, or performing service for, the Company or a Subsidiary, or within the three
(3) month period after the date of termination of such Grantee's employment or service (or within such different period as the
Committee may have provided pursuant to Section ‎ 6.6 hereof), or if the Grantee's employment or service shall terminate by
reason of Disability, all Options theretofore granted to such Grantee may (to the extent otherwise vested and exercisable and unless
earlier terminated in accordance with their terms), be exercised by the Grantee or by the Grantee's estate or by a person who acquired
the right to exercise such Options by bequest or inheritance or otherwise by result of death or Disability of the Grantee, at any
time within one (1) year after the death or Disability of the Grantee (or such different period as the Committee shall prescribe).
In the event that an Option granted hereunder shall be exercised by the legal representatives of a deceased or former Grantee,
written notice of such exercise shall be accompanied by a certified copy of letters testamentary or equivalent proof of the right
of such legal representative to exercise such Option. In the event that the employment or service of a Grantee shall terminate
on account of such Grantee's Retirement, all Options of such Grantee that are exercisable at the time of such Retirement may, unless
earlier terminated in accordance with their terms, be exercised at any time within the three (3) month period after the date of
such Retirement (or such different period as the Committee shall prescribe).

 

6.8. Suspension of Vesting. Unless the
Board of Directors or the Committee provides otherwise, vesting of Options granted hereunder shall be suspended during any unpaid
leave of absence, other than in the case of any (a) periods of legally protected leave of absence pursuant to Applicable Law, (b)
leave of absence which was pre-approved by the Company for purposes of continuing the vesting of Options, or (c) transfers between
locations of the Company or between the Company, any Affiliate, or any respective successor thereof.

 

6.9. Other Provisions. The Option Agreement
evidencing Awards under the Plan shall contain such other terms and conditions not inconsistent with the Plan as the Committee
may determine, at or after the date of grant, including without limitation, provisions in connection with the restrictions on transferring
the Awards, which shall be binding upon the Grantees and other terms and conditions as the Committee shall deem appropriate.

 

6.10. Israeli Index Base for 102 Awards.
Each 102 Award will be subject to the Israeli index base of the Value of Benefit, as defined in Section 102(a) of the Ordinance,
as determined by the Committee in its discretion, pursuant to the Rules, from time to time. In the event that the Company effects
a public offering of its shares in any stock exchange outside of Israel, the Committee may amend retroactively the Israeli index
base, pursuant to the Rules, without the Grantee’s consent.

 

    	 	7	 

     

    

  

6.11. Securities Law Restrictions. Except
as otherwise provided in the applicable Option Agreement or other agreement between the Grantee and the Company, if the exercise
of an Option following the termination of the Grantee’s employment or service (other than for Cause) would be prohibited
at any time solely because the issuance of Shares would violate the registration requirements under the Securities Act, then the
Option shall terminate on the earlier of (i) the expiration of a period of six (6) months after the termination of the Grantee’s
employment or service during which the exercise of the Option would not be in violation of such registration requirements, or (ii)
the expiration of the term of the Option as set forth in the Option Agreement.

 

7. NONQUALIFIED STOCK OPTIONS.

 

Options granted pursuant to this Section
‎7 are intended to constitute Nonqualified Stock Options and shall be subject to the general terms and conditions specified
in Section ‎6 hereof and other provisions of the Plan, except for any provisions of the Plan applying to Options under different
tax laws or regulations. Nonqualified Stock Options may not be granted to Grantees who are providing services only to a "parent"
of the Company, as such term is defined in Rule 405 of Regulation C under the Securities Act, unless the Shares underlying such
Awards are treated as "service recipient stock" under Section 409A of the Code because the Awards are granted pursuant
to a corporate transaction (such as a spin off transaction) or unless such Awards comply with the distribution requirements of
Section 409A of the Code.

 

8. INCENTIVE STOCK OPTIONS.

 

Options granted pursuant to this Section
‎ 8 are intended to constitute Incentive Stock Options and shall be granted subject to the following special terms and conditions,
the general terms and conditions specified in Section ‎ 6 hereof and other provisions of the Plan, except for any provisions
of the Plan applying to Options under different tax laws or regulations:

 

8.1. Eligibility for Awards. Incentive
Stock Options may be granted only to Employees of the Company, or to Employees of a Parent or Subsidiary corporation thereof (as
such terms are defined in Sections 424(e) and 424(f) of the Code). No more than 12,000,000 Ordinary Shares may be issued as a result
of the exercise of Incentive Stock Options granted under the Plan.

 

8.2. Value of Shares. The aggregate Fair
Market Value (determined as of the date the Incentive Stock Option is granted) of the Shares with respect to which all Incentive
Stock Options granted under this Plan and all other option plans of any Parent or Subsidiary corporation become exercisable for
the first time by each Grantee during any calendar year shall not exceed one hundred thousand United States dollars ($100,000)
with respect to such Grantee. To the extent that the aggregate Fair Market Value of Shares with respect to which the Incentive
Stock Options are exercisable for the first time by any Grantee during any calendar years exceeds one hundred thousand United States
dollars ($100,000), such Options shall be treated as Nonqualified Stock Options. The foregoing shall be applied by taking Options
into account in the order in which they were granted, with the Fair Market Value of any Share to be determined at the time of the
grant of the Option. In the event that the foregoing results in the portion of an Incentive Stock Option exceeding the one hundred
thousand United States dollars ($100,000) limitation, only such excess shall be treated as a Nonqualified Stock Option.

 

8.3. Ten Percent Shareholder. In the case
of an Incentive Stock Option granted to a Ten Percent Shareholder, (i) the Exercise Price shall not be less than one hundred and
ten percent (110%) of the Fair Market Value of the Shares on the date of grant of such Incentive Stock Option, and (ii) the Exercise
Period shall not exceed five (5) years from the date of grant of such Incentive Stock Option.

 

8.4. Incentive Stock Option Lock-Up Period.
No disposition of Shares received pursuant to the exercise of Incentive Stock Options (" ISO Shares"), shall be made
by the Grantee within 2 years from the date of grant, nor within 1 year after the transfer of such ISO Shares to the Grantee. To
the extent that the Grantee violates the aforementioned limitations, the Incentive Stock Options shall be deemed to be Nonqualified
Stock Options.

 

8.5. Approval. The status of any ISO Shares
shall be subject to approval of the Plan by the Company’s shareholders, for the purposes of qualifying the Plan with respect
to the issuance of ISO Shares, and such approval to be provided 12 months before or after the date of adoption of the Plan by the
Board of Directors.

 

8.6. Exercise Following Termination. Notwithstanding
anything else in this Plan to the contrary, Incentive Stock Options that are not exercised within three (3) months following termination
of a Grantee’s employment in the Company or its Parent or Subsidiary corporations, or within one year in case of termination
of Grantee’s employment in the Company or its Parent or Subsidiary corporations due to a Disability (within the meaning of
section 22(e)(3) of the Code), shall be deemed to be Nonqualified Stock Options.

 

    	 	8	 

     

    

  

8.7. Adjustments to Incentive Stock Options.
Any Option Agreement providing for the grant of Incentive Stock Options shall indicate that adjustments made pursuant to the Plan
with respect to Incentive Stock Options could constitute a "modification" of such Incentive Stock Options (as that term
is defined in Section 424(h) of the Code) or could cause adverse tax consequences for the holder of such Incentive Stock Options
and that the holder should consult with his or her tax advisor regarding the consequences of such "modification" on his
or her income tax treatment with respect to the Incentive Stock Option.

 

8.8. Notice to Company of Disqualifying
Disposition. Each Grantee who receives an Incentive Stock Option must agree to notify the Company in writing immediately after
the Grantee makes a Disqualifying Disposition of any ISO Shares. A "Disqualifying Disposition" is any disposition (including
any sale) of such ISO Shares before the later of (i) two years after the date the Grantee was granted the Incentive Stock Option,
or (ii) one year after the date the Grantee acquired Shares by exercising the Incentive Stock Option. If the Grantee dies before
such ISO Shares are sold, these holding period requirements do not apply and no disposition of the ISO Shares will be deemed a
Disqualifying Disposition.

 

9. 102 AWARDS.

 

9.1. The Company may elect to grant Awards
to Grantees pursuant to this Section ‎ 9 through either (a) Section 102(b)(2) of the Ordinance as capital gains track Awards
("102 Capital Gains Track Awards"), or (b) Section 102(b)(1) of the Ordinance as ordinary income track Awards ("
102 Ordinary Income Track Awards", and together with 102 Capital Gains Track Awards, "102 Trustee Awards"). 102
Trustee Awards shall be granted subject to the following special terms and conditions contained in this Section‎ 9, the general
terms and conditions specified in Sections ‎ 6, 11 and 12 hereof and other provisions of the Plan, except for any provisions
of the Plan applying to Awards under different tax laws or regulations.

 

9.2. The Company may grant only one type
of 102 Trustee Awards at any given time to all Grantees who are to be granted 102 Trustee Awards pursuant to this Plan, and shall
file an election with the ITA regarding the type of 102 Trustee Award it elects to grant before the date of grant of any 102 Trustee
Awards (the "Election"). Such Election shall also apply to any bonus shares received by any Grantee as a result of holding
the 102 Trustee Awards. The Company may change the type of 102 Trustee Awards that it elects to grant only after the passage of
at least 12 months from the end of the year in which the first grant was made in accordance with the previous Election, or as otherwise
provided by Applicable Law. Any Election shall not prevent the Company from granting Awards pursuant to Section 102(c) of the Ordinance
without a Trustee (" 102 Non-Trustee Awards").

 

9.3. Each 102 Trustee Award will be deemed
granted on the date stated in a written notice to be provided by the Company, provided that on or before such date (i) the Company
has provided such notice to the Trustee and (ii) the Grantee has signed all documents required pursuant to Applicable Law and under
the Plan.

 

9.4. Each 102 Trustee Award, each Share
issued pursuant to the exercise of any 102 Trustee Award, and any rights granted thereunder, including, without limitation, bonus
shares, shall be allotted and issued to and registered in the name of the Trustee and shall be held in trust for the benefit of
the Grantee for a period of not less than the requisite period prescribed by the Ordinance and the Rules or such longer period
as set by the Committee (the "Required Holding Period"). In the event that the requirements under Section 102 to qualify
an Award as a 102 Trustee Award are not met, then the Award may be treated as a 102 Non-Trustee Award, all in accordance with the
provisions of Section 102 and the Rules. After termination of the Required Holding Period, the Trustee may release such 102 Trustee
Awards and any such Shares, provided that (i) the Trustee has received an acknowledgment from the ITA that the Grantee has paid
any applicable taxes due pursuant to the Ordinance or (ii) the Trustee and/or the Company and/or its Affiliate withholds any applicable
taxes due pursuant to the Ordinance arising from the 102 Trustee Awards and/or any Shares allotted or issued upon exercise of such
102 Trustee Awards. The Trustee shall not release any 102 Trustee Awards or Shares issued upon exercise thereof prior to the payment
in full of the Grantee’s tax liabilities arising from such 102 Trustee Awards and/or Shares or the withholding referred to
in (ii) above.

 

9.5. Each 102 Trustee Award shall be subject
to the relevant terms of the Ordinance and the Rules, which shall be deemed an integral part of the 102 Trustee Award and shall
prevail over any term contained in the Plan or Award Agreement that is not consistent therewith. Any provision of the Ordinance,
the Rules and any approvals by the Income Tax Commissioner not expressly specified in this Plan or an Option Agreement, Restricted
Share Agreement, Restricted Share Unit Agreement or any other agreement entered into in connection with an Award that, as determined
by the Committee, are necessary to receive or maintain any tax benefit pursuant to Section 102 shall be binding on the Grantee.
Each Grantee granted a 102 Trustee Award shall comply with the Ordinance and the terms and conditions of the Trust Agreement entered
into between the Company and the Trustee. Each Grantee agrees to execute any and all documents that the Company and/or its Affiliates
and/or the Trustee may reasonably determine to be necessary in order to comply with the Ordinance and the Rules.

 

    	 	9	 

     

    

  

9.6. During the Required Holding Period,
each Grantee shall not release from trust or sell, assign, transfer or give as collateral, the Shares issuable upon the exercise
of a 102 Trustee Awards and/or any securities issued or distributed with respect thereto, until the expiration of the Required
Holding Period. Notwithstanding the above, if any such sale or release occurs during the Required Holding Period it will result
in adverse tax consequences to the Grantee under Section 102 of the Ordinance and the Rules, which shall apply to and shall be
borne solely by such Grantee. Subject to the foregoing, the Trustee may, pursuant to a written request from a Grantee, release
and transfer such Shares to a designated third party, provided that both of the following conditions have been fulfilled prior
to such release or transfer: (i) payment has been made to the ITA of all taxes required to be paid upon the release and transfer
of the Shares, and confirmation of such payment has been received by the Trustee; and (ii) the Trustee has received written confirmation
from the Company that all requirements for such release and transfer have been fulfilled according to the terms of the Company’s
corporate documents, the Plan, the relevant Option Agreement and any Applicable Law.

 

9.7. If a 102 Trustee Award is exercised
during the Required Holding Period, the Shares issued upon such exercise shall be issued in the name of the Trustee for the benefit
of the Grantee. If such 102 Trustee Award is exercised after the expiration of the Required Holding Period, the Shares issued upon
such exercise shall, at the election of the Grantee, either (i) be issued in the name of the Trustee, or (ii) be issued to the
Company's Nominee Company for the benefit of Grantee, provided that the Grantee first complies with all applicable provisions of
the Plan and all taxes with respect thereto shall have been fully paid to the ITA.

 

9.8. The foregoing provisions of this Section
‎ 9 relating to 102 Trustee Awards shall not apply with respect to 102 Non-Trustee Awards, which shall, however, be subject
to the relevant provisions of Section 102 and the Rules.

 

9.9. Upon receipt of a 102 Trustee Award,
a Grantee will sign an undertaking to release the Trustee from any liability with respect to any action or decision duly taken
and executed in good faith by the Trustee in relation to the Plan, or any 102 Trustee Award or Share granted to such Grantee thereunder.

 

10. 3(9) AWARDS.

 

10.1. Awards granted pursuant to this Section
‎ 10 are intended to constitute 3(9) Awards and shall be granted subject to the general terms and conditions specified in Section
6 hereof and other provisions of the Plan, except for any provisions of the Plan applying to Awards under different tax laws or
regulations.

 

10.2. To the extent required by the Ordinance
or the ITA or otherwise deemed by the Committee prudent or advisable, 3(9) Awards granted pursuant to the Plan shall be issued
to a Trustee nominated by the Committee in accordance with the provisions of the Ordinance. In such event, the Trustee shall hold
such Awards in trust, until exercised by the Grantee, pursuant to the Company's instructions from time to time as set forth in
a trust agreement, which will be entered into between the Company and the Trustee. If determined by the Board or the Committee,
and subject to such trust agreement, the Trustee shall be responsible for withholding any taxes for which a Grantee may become
liable upon the exercise of Awards.

 

11. RESTRICTED SHARES

 

The Committee may award Restricted Shares
to any eligible Grantee, including under Section 102 of the Ordinance. Each Award of Restricted Shares under the Plan shall be
evidenced by a written agreement between the Company and the Grantee (a "Restricted Share Agreement"), in such form as
the Committee shall from time to time approve. Each Restricted Share Agreement shall comply with and be subject to the following
terms and conditions, unless otherwise specifically provided in such Agreement:

 

11.1. Number of Shares. Each Restricted
Share Agreement shall state the number of Shares covered by an Award.

 

11.2. Purchase Price. Each Restricted Share
Agreement may state a purchase price amount to be paid by the Grantee, if any, in consideration for the issuance of Restricted
Shares and the terms of payment thereof, which may include payment by issuance of promissory notes or other evidence of indebtedness
on such terms and conditions as determined by the Committee.

 

    	 	10	 

     

    

  

11.3. Vesting. Each Restricted Share Agreement
shall provide the vesting schedule for Restricted Shares as determined by the Committee, provided that (to the extent permitted
under Applicable Law) the Committee shall have the authority to determine the vesting schedule and accelerate the vesting of any
outstanding Restricted Share at such time and under such circumstances as it, in its sole discretion, deems appropriate, including,
for avoidance of doubt, acceleration for change of control as such is defined in an agreement with the applicable Grantee.

 

11.4. Restrictions. Restricted Shares may
not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the laws of descent and distribution,
for such period as the Committee shall determine from the date on which an Award is granted (a "Restricted Period").
The Committee may also impose such additional or alternative restrictions and conditions on Restricted Shares as it deems appropriate,
including the satisfaction of performance criteria. Such performance criteria may include, but are not limited to, sales, earnings
before interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any
of the foregoing, as determined by the Committee. Certificates for shares issued pursuant to Restricted Share Awards shall bear
an appropriate legend referring to such restrictions, and any attempt to dispose of any such shares in contravention of such restrictions
shall be null and void and without effect. Such certificates may, if so determined by the Committee, be held in escrow by an escrow
agent appointed by the Committee, or, if a Restricted Share Award is made pursuant to Section 102, by the Trustee. In determining
the Restricted Period of an Award, the Committee may provide that the foregoing restrictions shall lapse with respect to specified
percentages of the awarded Restricted Shares on successive anniversaries of the date of such Award.

 

11.5. Adjustment of Performance Goals.
The Committee may adjust performance goals to take into account changes in law and accounting and tax rules and to make such adjustments
as the Committee deems necessary or appropriate to reflect the inclusion or the exclusion of the impact of extraordinary or unusual
items, events or circumstances. The Committee also may adjust the performance goals by reducing the amount to be received by any
Grantee pursuant to an Award if and to the extent that the Committee deems it appropriate.

 

11.6. Forfeiture. Subject to such exceptions
as may be determined by the Committee, if a Grantee's continuous employment with the Company or any Subsidiary or Affiliate shall
terminate for any reason prior to the expiration of the vesting date or Restricted Period of an Award or prior to the payment in
full of the purchase price for any Restricted Shares with respect to which the vesting date or the Restricted Period has expired,
any Shares remaining subject to vesting or restrictions or with respect to which the purchase price has not been paid in full,
shall thereupon be forfeited and shall be deemed transferred to, and reacquired by, or cancelled by, as the case may be, the Company
or a Subsidiary at no cost to the Company or Subsidiary, subject to all Applicable Laws. Upon forfeiture of Restricted Shares,
the Grantee shall have no further rights with respect to such Restricted Shares.

 

11.7. Ownership. During a Restricted Period,
a Grantee shall possess all incidents of ownership of Restricted Shares, subject to Sections ‎ 6.9 and ‎ 11.4, including
the right to vote and receive dividends with respect to such Shares. All distributions, if any, received by a Grantee with respect
to Restricted Shares as a result of any stock split, stock dividend, combination of shares, or other similar transaction shall
be subject to the restrictions applicable to the original Award.

  

12. RESTRICTED SHARE UNITS.

 

12.1. A Restricted Share Unit ("RSU")
is an Award covering a number of Shares that is settled by issuance of those Shares. An RSU may be awarded to any eligible Grantee,
including under Section 102 of the Ordinance. Each grant of RSUs under the Plan shall be evidenced by a written agreement between
the Company and the Grantee (the "Restricted Share Unit Agreement"), in such form as the Committee shall from time to
time approve. RSUs shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent
with the Plan. The provisions of various Restricted Share Unit Agreements entered into under the Plan need not be identical. RSUs
may be granted in consideration of a reduction in the recipient’s other compensation.

 

12.2. Other than the par value of the Shares,
no payment of cash shall be required as consideration for RSUs. RSUs may or may not be subject to vesting. Vesting shall occur,
in full or in installments, upon satisfaction of the conditions specified in the relevant Restricted Share Unit Agreement.

 

12.3. Without limitation of Section‎
6.9, no voting or dividend rights as a shareholder shall exist prior to the actual issuance of Shares in the name of a Grantee.
Notwithstanding anything else in this Plan (as may be amended from time to time) to the contrary, unless otherwise specified by
the Committee, each RSU shall be for a term of ten (10) years. Each Restricted Share Unit Agreement shall specify its term and
any conditions on the time or times for settlement, and provide for expiration prior to the end of its term in the event of termination
of employment or service providing to the Company, and may provide for earlier settlement in the event of a Grantee’s death,
Disability or other events.

 

    	 	11	 

     

    

  

12.4. Settlement of vested RSUs shall be
made in the form of Shares. Distribution to a Grantee of an amount (or amounts) from settlement of vested RSUs can be deferred
to a date after settlement as determined by the Committee. The amount of a deferred distribution may be increased by an interest
factor or by dividend equivalents. Until a grant of RSUs is settled, the number of such RSUs shall be subject to adjustment pursuant
hereto.

 

12.5. Notwithstanding anything to the contrary
set forth herein, any RSUs granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall contain
such restrictions or other provisions so that such RSUs will comply with the requirements of Section 409A of the Code. Such restrictions,
if any, shall be determined by the Board and contained in the Restricted Share Unit Agreement evidencing such RSU Award. For example,
such restrictions may include, without limitation, a requirement that any Shares that are to be issued in a year following the
year in which the RSU Award vests must be issued in accordance with a fixed, pre-determined schedule.

 

13. OTHER SHARE OR SHARE-BASED AWARDS.

 

The Committee may grant other Awards under
the Plan pursuant to which Shares (which may, but need not, be Restricted Shares pursuant to Section 11 hereof), cash or a combination
thereof, are or may in the future be acquired or received, or Awards denominated in stock units, including units valued on the
basis of measures other than market value. The Committee may also grant stock appreciation rights without the grant of an accompanying
Option, which rights shall permit the Grantees to receive, at the time of any exercise of such rights, cash equal to the amount
by which the Fair Market Value of all Shares in respect of which the right was granted exceeds the exercise price thereof. The
Committee may grant to Grantees (including Employees), and it is hereby deemed to be an Award under the terms of the Plan, the
opportunity to purchase Shares of the Company in connection with any public offerings of the Company’s securities, including
a rights offering to Shareholders of the Company. Such other Share based Awards may be granted alone, in addition to, or in tandem
with, any Award of any type granted under the Plan and must be consistent with the purposes of the Plan.

 

14. EFFECT OF CERTAIN CHANGES.

 

14.1. General. In the event of a subdivision
of the outstanding share capital of the Company, a recapitalization, a reorganization (which may include a combination or exchange
of shares), a consolidation, a stock split, a reverse stock split, a spin-off or other corporate divestiture or division, a reclassification
or other similar occurrence, the Committee shall make such adjustments as determined by it to be appropriate in order to adjust
(i) the number of Shares available for grants of Awards, (ii) the number of Shares covered by outstanding Awards, and (iii) the
exercise price per Share covered by any Award; provided, however, that any fractional Shares resulting from such adjustment shall
be rounded down to the nearest whole Share, and the Company shall have no obligation to make any cash or other payment with respect
to such fractional Shares, and provided that in any event the exercise price shall not be less than NIS 0.30 (or equivalent in
other currency) or such other minimum exercise price as determined under applicable law and/or by a competent authority and/or
by the Tel Aviv Stock Exchange.

 

14.2. Merger and Sale of Company. In the
event of (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 Company, or an acquisition by a shareholder of the Company or by an Affiliate of such shareholder,
of all of the shares of the Company held by other shareholders or by other shareholders who are not Affiliated with such acquiring
party; (iii) a merger, consolidation, amalgamation or like transaction of the Company with or into another corporation; (iv) a
scheme or arrangement for the purpose of effecting such sale, merger or amalgamation; or (v) such other transaction or set of circumstances
that is determined by the Committee, in its discretion, to be a transaction having a similar effect (all such transactions being
herein referred to as a "Merger/Sale"), then, without the Grantee’s consent and action and without any prior notice
requirement:

 

14.2.1. Unless otherwise determined by
the Committee in its sole and absolute discretion, any Award then outstanding shall be assumed or an equivalent Award shall be
substituted by such successor corporation of the Merger/Sale or any Parent or Affiliate thereof as determined by the Board in its
discretion (the "Successor Corporation"), under substantially the same terms as the Award.

 

    	 	12	 

     

    

  

For the purposes of this Section ‎
14.2.1, the Award shall be considered assumed if, following a Merger/Sale, the Award confers on the holder thereof the right to
purchase or receive, for each Share underlying an Award immediately prior to the Merger/Sale, either (i) the consideration (whether
stock, cash, or other securities or property) distributed to or received by holders of Shares in the Merger/Sale for each Share
held on the effective date of the Merger/Sale (and if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares), which may be subject to vesting and other terms as determined by
the Committee in its discretion, or (ii) regardless of the consideration received by the holders of Shares in the Merger/Sale,
solely shares (or their equivalent) of the Successor Corporation at a value to be determined by the Committee in its discretion,
which may be subject to vesting and other terms as determined by the Committee in its discretion. The foregoing shall not limit
the Committee's authority to determine, in its sole discretion, that in lieu of such assumption or substitution of awards of the
Successor Corporation for Awards, any other type of asset or property will be substituted for an Award, including under Section
‎ 14.2.2 hereunder.

 

14.2.2. In the event that Awards are not
assumed or substituted for by equivalent awards, the Committee may (but shall not be obligated to), in lieu of such assumption
of, or substitution for, an Award, and in its sole discretion, (i) provide for a Grantee to have the right to exercise an Award,
or otherwise accelerate vesting of an Award, as to all or part of the Shares covered thereby, including Shares covered by the Award
which would not otherwise be exercisable or vested, under such terms and conditions as the Committee shall determine, including
the cancellation of all unexercised Awards upon closing of the Merger/Sale; and/or (ii) provide for the cancellation of each outstanding
Award at the closing of such Merger/Sale, and payment to the Grantee of an amount in cash as determined by the Committee to be
fair under the circumstances (with full authority to determine the method for making such determination, which may be the Black-Scholes
model or any other method, and which determination shall be conclusive and binding on all parties, and which may be zero if the
value of the Shares underlying an Option is determined to be less than the Exercise Price therefor), and subject to such terms
and conditions as may be determined by the Committee. Payments under this provision may be delayed to the same extent that payment
of consideration to the holders of the Company’s Shares in connection with the Merger/Sale is delayed as a result of escrows,
earn outs, holdbacks or any other contingencies.

 

14.2.3. Notwithstanding the foregoing,
in the event of a Merger/Sale, the Committee may determine, in its sole discretion, that upon completion of such Merger/Sale, the
terms of any Award shall be otherwise amended, modified or terminated, as the Committee shall deem in good faith to be appropriate,
and if an Option Award, that the Option Award shall confer the right to purchase or receive any other security or asset, or any
combination thereof, or that its terms be otherwise amended, modified or terminated, as the Committee shall deem in good faith
to be appropriate. Neither the authorities and powers of the Committee under this Section ‎ 14.2, nor the exercise or implementation
thereof, shall (i) be restricted or limited in any way by any adverse consequences (tax or otherwise) that may result to any holder
of an Award, and (ii) as, inter alia , being a feature of the Award upon its grant, be deemed to constitute a change or an amendment
of the rights of such holder under this Plan, nor shall any such adverse consequences (as well as any adverse tax consequences
that may result from any tax ruling or other approval or determination of any relevant tax authority) be deemed to constitute a
change or an amendment of the rights of such holder under this Plan.

 

14.2.4. The Committee need not take the
same action with respect to all Awards or with respect to all Grantees. The Committee may take different actions with respect to
the vested and unvested portions of an Award.

 

14.3 Effect of distributions and rights
offerings.

 

14.3.1 In case of bonus share distribution
in which the record date is prior to the exercise date of vested Options, then the quantity of shares to which the Grantee is entitled
upon exercise of such Options will be increased by the number of shares to which the Grantee would have been entitled to receive
as bonus shares, had such Grantee exercised such vested options no later than the trading day preceding the Ex-benefit date. The
exercise price of the options will remain unchanged. The provisions applicable to Shares issued pursuant to the exercise of Options
(including without limitation the provisions relating to the Required Holding Period pursuant to section 9.4 above) shall apply
to all Shares issuable upon exercise of such Options.

 

14.3.2 In the event that the Company shall
offer to its shareholders any securities by way of a rights issue, the exercise price of the Options and the quantity of Shares
issuable upon exercise of the Options will not be adjusted, however the Company shall offer, or cause to be offered, rights to
Grantees mutatis mutandis, in such quantity as the Grantees would have been entitled in the event that they had exercised their
vested Options one day prior to the record date for the rights issuance. The provisions herein applicable to Shares issued pursuant
to the exercise of Options (including without limitation the provisions relating to the Required Holding Period pursuant to section
9.4 above) shall apply to all securities issuable in such manner to Grantees pursuant to the rights offering (if any) - with the
exception of such quantity of the securities with an Ex-rights value equal to the amount invested by the Grantee in exercising
the rights, which securities shall be transferred (beneficially) to the Company's Nominee Company for the benefit of Grantee following
issuance thereof.

 

    	 	13	 

     

    

  

14.3.3. Cash dividend distribution. No
adjustments in the purchase price or quantity of options shall be implemented in the event of distribution of a cash dividend by
the Company to its shareholders.

 

14.4. Reservation of Rights. Except as
expressly provided in this Section ‎ 14, the Grantee of an Award hereunder shall have no rights by reason of any subdivision
or consolidation of shares of any class or the payment of any stock dividend (bonus shares), any other increase or decrease in
the number of shares of any class or by reason of any dissolution, liquidation, Merger/Sale, or consolidation, divestiture or spin-off
of assets or shares of another company. Any issue by the Company of shares of any class, or securities convertible into shares
of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number, type or
price of shares subject to an Award. The grant of an Award pursuant to the Plan shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, reorganizations or changes to its capital or business structures or to merge,
consolidate, dissolve, liquidate, sell or transfer all or part of its business or assets or engage in any similar transactions.

 

14.5. In accordance with directives of
the Tel Aviv Stock Exchange, due to transition to clearance on day T+1 for shares and convertible securities, and to the extent
the Tel Aviv Stock Exchange bylaws shall not determine otherwise, no Options shall be exercised on the effective date for bonus
share distribution, rights offering, dividend distribution, share capital split, reverse-split or reduction (hereinafter: a "Corporate
Event"). Furthermore, in the event that the Ex-day for a Corporate Event shall occur prior to the effective date for a Corporate
Event, no Options may be exercised on said Ex-day.

 

15. NON-TRANSFERABILITY OF AWARDS; SURVIVING
BENEFICIARY.

 

15.1. All Awards granted under the Plan
shall not be transferable otherwise than by will or by the laws of descent and distribution, unless otherwise determined by the
Board or under this Plan, provided that with respect to Shares issued upon exercise of Options, the restrictions on transfer shall
be the restrictions referred to in Section ‎ 16 (Conditions Upon Issuance of Shares) hereof. Awards may be exercised or otherwise
realized, during the lifetime of a Grantee, only by the Grantee or by his or her guardian or legal representative, to the extent
provided herein. Any transfer of an Award not permitted hereunder (including transfers pursuant to any decree of divorce, dissolution
or separate maintenance, any property settlement, separation agreement or any other agreement with a spouse) and any grant of any
interest in any Award to, or creation in any way of any interest in any Award by, any party other than a Grantee shall be null
and void and shall not confer upon any party or person, other than the Grantee, any rights. A Grantee may file with the Committee
a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or
revoke such designation. If no designated beneficiary survives the Grantee, the executor or administrator of the Grantee's estate
shall be deemed to be the Grantee's beneficiary. Notwithstanding the foregoing, upon the request of a Grantee and subject to Applicable
Law, the Committee, at its sole discretion, may permit the Grantee to transfer an Award to a family trust.

 

15.2. As long as Shares are held by a Trustee
in favor of a Grantee, all rights possessed by the Grantee over the Shares are personal, and may not be transferred, assigned,
pledged or mortgaged, other than by will or laws of descent and distribution.

 

16. CONDITIONS UPON ISSUANCE OF SHARES

 

16.1. Legal Compliance. Shares shall not
be issued pursuant to the exercise or settlement of an Award, unless the exercise or settlement of such Award and the issuance
and delivery of such Shares shall comply with Applicable Laws as determined by counsel to the Company. The inability of the Company
to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary for the lawful issuance and sale of any Shares hereunder, and the inability to issue Shares hereunder due to non-compliance
with any Company policies with respect to the sale of Shares, shall relieve the Company of any liability in respect of the failure
to issue or sell such Shares as to which such requisite authority or compliance shall not have been obtained or achieved. Shares
issued pursuant to an Award shall be subject to the Amended and Restated Articles of Association of the Company and any other governing
documents of the Company, including all policies, manuals and internal regulations adopted by the Company from time to time, as
may be amended from time to time, including, without limitation, any provisions included therein concerning restrictions or limitations
on transferability of Shares or grant of any rights with respect thereto and any provisions concerning restrictions on the use
of inside information and other provisions deemed by the Company to be appropriate in order to ensure compliance with Applicable
Law, statutes and regulations.

 

    	 	14	 

     

    

  

16.2. Investment Representations. As a
condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the
time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or
distribute such Shares, and to make other representations as may be required under applicable securities laws, if, in the opinion
of counsel for the Company, such representations are required, all in form and content specified by the Company.

 

17. MARKET STAND-OFF

 

17.1. In connection with any underwritten
public offering by the Company of its equity securities pursuant to an effective registration statement filed under the Securities
Act or equivalent law in another jurisdiction, a Grantee shall not directly or indirectly, without the prior written consent of
the Company or its underwriters, (i) lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase
any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or
indirectly, any Shares acquired under this Plan or any securities of the Company (whether or not acquired under this Plan), or
(ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences
of ownership of the Shares acquired under this Plan, whether any such transaction described in clause (i) or (ii) above is to be
settled by delivery of Shares acquired under this Plan or such other securities, in cash or otherwise. Such restriction (the "Market
Stand-Off") shall be in effect for such period of time following the effective date of the registration statement relating
to such offering as may be requested by the Company or such underwriters, provided, however, that in any event, such period shall
not exceed 90 days following the effective date of such registration statement.

 

17.2. In the event of a subdivision of
the outstanding share capital of the Company, the declaration and payment of a stock dividend (distribution of bonus shares), the
declaration and payment of an extraordinary dividend payable in a form other than stock, a recapitalization, reorganization (which
may include a combination or exchange of shares or a similar transaction affecting the Company’s outstanding securities without
receipt of consideration), a consolidation, stock split, spin-off or other corporate divestiture or division, a reclassification
or other similar occurrence, an adjustment in conversion ratio, any new, substituted or additional securities which are by reason
of such transaction distributed with respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become
convertible, shall immediately be subject to the Market Stand-Off.

 

17.3. In order to enforce the Market Stand-Off,
the Company may impose stop-transfer instructions with respect to the Shares acquired under this Plan until the end of the applicable
stand-off period.

 

17.4. The underwriters in connection with
a registration statement so filed are intended to be third party beneficiaries of this Section 17 and shall have the right, power
and authority to enforce the provisions hereof as though they were a party hereto.

 

18. AGREEMENT BY GRANTEE REGARDING TAXES.

 

18.1. If the Committee shall so require,
as a condition of exercise of an Award, the release of Shares by the Trustee or the expiration of the Restricted Period, a Grantee
shall agree that, no later than the date of such occurrence, he or she will pay to the Company or make arrangements satisfactory
to the Committee and the Trustee (if applicable) regarding payment of any applicable taxes of any kind required by Applicable Law
to be withheld or paid.

 

18.2. Each Option Agreement, Restricted
Share Agreement, and Restricted Share Unit Agreement and each other agreement in connection with an Award under the Plan shall
contain the following agreement and acknowledgment of the Grantee:

 

ALL TAX CONSEQUENCES UNDER ANY APPLICABLE
LAW WHICH MAY ARISE FROM THE GRANT OF ANY AWARDS OR THE EXERCISE THEREOF, THE SALE OR DISPOSITION OF ANY SHARES GRANTED HEREUNDER
OR ISSUED UPON EXERCISE OF ANY AWARD OR FROM ANY OTHER ACTION OF A GRANTEE IN CONNECTION WITH THE FOREGOING SHALL BE BORNE AND
PAID SOLELY BY SUCH GRANTEE, AND THE GRANTEE SHALL INDEMNIFY THE COMPANY, ITS SUBSIDIARIES AND AFFILIATES AND THE TRUSTEE, AND
SHALL HOLD THEM HARMLESS AGAINST AND FROM ANY LIABILITY FOR ANY SUCH TAX OR PENALTY, INTEREST OR INDEXATION THEREON. EACH GRANTEE
AGREES TO, AND UNDERTAKES TO COMPLY WITH, ANY RULING, SETTLEMENT, CLOSING AGREEMENT OR OTHER SIMILAR AGREEMENT OR ARRANGEMENT WITH
ANY TAX AUTHORITY IN CONNECTION WITH THE FOREGOING WHICH IS APPROVED BY THE COMPANY. EACH GRANTEE IS ADVISED TO CONSULT WITH A
TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING AWARDS HEREUNDER. THE COMPANY DOES NOT ASSUME ANY RESPONSIBILITY
TO ADVISE A GRANTEE ON SUCH MATTERS, WHICH SHALL REMAIN SOLELY THE RESPONSIBILITY OF SUCH GRANTEE.

 

    	 	15	 

     

    

  

18.3. The Company or any Subsidiary or
Affiliate may take such action as it may deem necessary or appropriate, in its discretion, for the purpose of or in connection
with withholding of any taxes which the Company or any Subsidiary or Affiliate is required by any Applicable Law to withhold in
connection with any Awards (collectively, "Withholding Obligations"). Such actions may include, without limitation, (i)
requiring a Grantee to remit to the Company in cash an amount sufficient to satisfy such Withholding Obligations; (ii) subject
to Applicable Law, allowing a Grantee to surrender Shares to the Company, in an amount that at such time, reflects a value that
the Committee determines to be sufficient to satisfy such Withholding Obligations; (iii) withholding Shares otherwise issuable
upon the exercise of an Award at a value which is determined by the Committee to be sufficient to satisfy such Withholding Obligations;
or (iv) any combination of the foregoing. The Company shall not be obligated to allow the exercise of any Award by or on behalf
of a Grantee until all tax consequences arising from the exercise of such Award are resolved in a manner acceptable to the Company.

 

18.4. Each Grantee shall notify the Company
in writing promptly and in any event within ten (10) days after the date on which such Grantee first obtains knowledge of any tax
bureau inquiry, audit, assertion, determination, investigation, or question relating in any manner to the Awards granted or received
hereunder or Shares issued hereunder and shall continuously inform the Company of any developments, proceedings, discussions and
negotiations relating to such matter, and shall allow the Company and its representatives to participate in any proceedings and
discussions concerning such matters. Upon request, a Grantee shall provide to the Company any information or document relating
to any matter described in the preceding sentence, which the Company, in its discretion, requires.

 

18.5. With respect to 102 Non-Trustee Awards,
if a Grantee ceases to be engaged by the Company or any Affiliate, the Grantee shall extend to the Company and/or its Affiliate
with whom the Grantee is employed a security or guarantee for the payment of taxes due at the time of sale of Shares, all in accordance
with the provisions of Section 102 of the Ordinance and the Rules.

  

19. RIGHTS AS A SHAREHOLDER; VOTING AND
DIVIDENDS.

 

19.1. Subject to Section ‎ 11.7, a
Grantee shall have no rights as a shareholder of the Company with respect to any Shares covered by an Award until the Grantee shall
have exercised the Award (in the case of an Option or similar Award), paid the exercise price (to the extent applicable) and become
the record holder of the subject Shares. In the case of 102 Option Awards or 3(9) Option Awards (if such Options are being held
by a Trustee), the Trustee shall have no rights as a shareholder of the Company with respect to the Shares covered by such Award
until the Trustee becomes the record holder of such Shares for the Grantee’s benefit, and the Grantee shall have no rights
as a shareholder of the Company with respect to the Shares covered by the Award until the date of the release of such Shares from
the Trustee to the Company's Nominee Company for the benefit of Grantee and the transfer of record (beneficial) ownership of such
Shares to the Grantee. No adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other
property) or distribution of other rights for which the record date is prior to the date on which the Grantee or Trustee (as applicable)
becomes the beneficial record holder of the Shares covered by an Award, except as provided in Section ‎ 14 hereof.

 

19.2. With respect to all Awards issued
in the form of Shares hereunder or upon the exercise of Awards hereunder, any and all voting rights attached to such Shares shall
be subject to Section ‎ 6.9, and the Grantee shall be entitled to receive dividends distributed with respect to such Shares,
subject to the provisions of the Company’s Articles of Association, as amended from time to time, and subject to any Applicable
Law.

 

19.3. The Company may, but shall not be
obligated to, register or qualify the sale of Shares under any applicable securities law or any other applicable law.

 

19.4 It is clarified that all Shares and
other tradable securities of the Company are held by either the Company's Nominee Company acting as custodian for such securities
(at the Effective Date - the Registration Company of Bank Mizrachi), or the depositary for the Company’s ADS program (at
the Effective Date - The Bank of New York Mellon) and accordingly all Shares and other tradable securities which may be issued
to Grantee as a result of the exercise of Options shall be issued under the name of the Nominee Company with instructions that
Grantee shall be listed as beneficial shareholder of record.

 

    	 	16	 

     

    

  

20. NO REPRESENTATION BY COMPANY.

 

By granting Awards, the Company is not,
and shall not be deemed as, making any representation or warranties to a Grantee regarding the Company, its business affairs, its
prospects or the future value of its Shares.

 

21. NO RETENTION RIGHTS.

 

Nothing in the Plan or in any Award granted
or agreement entered into pursuant hereto shall confer upon any Grantee the right to continue in the employ of, or be in a consultant,
advisor, director, officer or supplier relationship with, the Company or any Subsidiary or Affiliate or to be entitled to any remuneration
or benefits not set forth in the Plan or such agreement or to interfere with or limit in any way the right of the Company or any
such Subsidiary or Affiliate to terminate such Grantee's employment or service. Awards granted under the Plan shall not be affected
by any change in duties or position of a Grantee as long as such Grantee continues to be employed by, or be in a consultant, advisor,
director, officer or supplier relationship with, the Company or any Subsidiary or Affiliate.

 

22. PERIOD DURING WHICH AWARDS MAY BE GRANTED.

 

Awards may be granted pursuant to the Plan
from time to time within a period of ten (10) years from the Effective Date. From and after the tenth (10th) anniversary
of the Effective Date no grants of Awards may be made and the Plan shall continue to be in full force and effect solely with respect
to such Awards that remain outstanding. The Plan shall terminate at such time after the tenth (10th) anniversary of
the Effective Date as no Awards remain outstanding.

 

23. TERM OF AWARD

 

Anything herein to the contrary notwithstanding,
but without derogating from the provisions of Sections ‎ 6.6, ‎ 6.7 or ‎ 8.3 hereof, if any Award, or any part thereof,
has not been exercised and the Shares covered thereby not paid for within the term of the Award as determined by the Committee,
which in any event shall not exceed ten (10) years after the date on which the Award was granted, as set forth in the Notice of
Grant in the Grantee’s Award, such Award, or such part thereof, and the right to acquire such Shares, shall terminate, and
all interests and rights of the Grantee in and to the same shall expire. In the case of Shares held by a Trustee, the Grantee shall
elect whether to release such Shares from trust or sell the Shares and upon such release or sale such trust shall expire.

 

24. AMENDMENT AND TERMINATION OF THE PLAN.

 

The Board at any time and from time to
time may suspend, terminate, modify or amend the Plan, whether retroactively or prospectively; provided, however, that, unless
otherwise determined by the Board, an amendment which requires shareholder approval in order for the Plan to continue to comply
with any Applicable Law shall not be effective unless approved by the requisite vote of shareholders, and provided further, that
except as provided herein, no suspension, termination, modification or amendment of the Plan may adversely affect any Award previously
granted, without the written consent of Grantees holding a majority in interest of the Awards so affected, and in the event that
such consent is obtained, all Awards so affected shall be deemed amended, and the holders thereof shall be bound, as set forth
in such consent.

 

25. APPROVAL.

 

25.1. The Plan shall take effect upon its
adoption by the Board (the "Effective Date"), except that solely with respect to grants of Incentive Stock Options the
Plan shall also be subject to approval within one year of the Effective Date, by a majority of the votes cast on the proposal at
a meeting or a written consent of shareholders. Failure to obtain approval by the shareholders shall not in any way derogate from
the valid and binding effect of any grant of an Award that is not an Incentive Stock Option. Upon approval of the Plan by the shareholders
of the Company as set forth above, all Incentive Stock Options granted under the Plan on or after the Effective Date shall be fully
effective as if the shareholders of the Company had approved the Plan on the Effective Date. Notwithstanding the foregoing, in
the event that approval of the Plan by the shareholders of the Company is required under Applicable Law, in connection with the
application of certain tax treatment or pursuant to applicable stock exchange rules or regulations or otherwise, such approval
shall be obtained within the time required under the Applicable Law.

 

    	 	17	 

     

    

 

25.2. The 102 Awards are subject to the
approval, if required, of the ITA and receipt by the Company of all approvals thereof.

  

26. RULES PARTICULAR TO SPECIFIC COUNTRIES;
SECTION 409A

 

Notwithstanding anything herein to the
contrary, the terms and conditions of the Plan may be amended with respect to a particular country by means of an appendix to the
Plan, and to the extent that the terms and conditions set forth in any appendix conflict with any provisions of the Plan, the provisions
of the appendix shall govern. Terms and conditions set forth in the Appendix shall apply only to Awards granted to Grantees under
the jurisdiction of the specific country that is the subject of the appendix and shall not apply to Awards issued to Grantees not
under the jurisdiction of such country. The adoption of any such appendix shall be subject to the approval of the Board or Committee,
and if required in connection with the application of certain tax treatment, pursuant to applicable stock exchange rules or regulations,
or otherwise, also the approval of the requisite majority of the shareholders of the Company. To the extent applicable, the Plan
and any agreement hereunder shall be interpreted in accordance with Section 409A of the Code. Notwithstanding any provision of
the Plan to the contrary, in the event that, following the Effective Date, the Board determines that any Award may be subject to
Section 409A of the Code, the Board may adopt such amendments to the Plan and to the relevant agreement governing the Award or
adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other
actions, that the Board determines are necessary or appropriate to (a) exempt the Award from Section 409A of the Code and/or preserve
the intended tax treatment of the benefits provided with respect to the Award or (b) comply with the requirements of Section 409A
of the Code.

  

27. GOVERNING LAW; JURISDICTION.

 

The Plan and all determinations made and
actions taken pursuant hereto shall be governed by the laws of the State of Israel, except with respect to matters that are subject
to tax laws, regulations and rules in any specific jurisdiction, which shall be governed by the respective laws, regulations and
rules of such jurisdiction. Certain definitions, which refer to laws other than the laws of such jurisdiction, shall be construed
in accordance with such other laws. The courts of competent jurisdiction located in Tel-Aviv-Jaffa, Israel shall have exclusive
jurisdiction over any dispute arising out of or in connection with this Plan and any Award granted hereunder, and by signing any
agreement relating to an Award hereunder each Grantee irrevocably submits to such exclusive jurisdiction.

 

28. NON-EXCLUSIVITY OF THE PLAN.

 

Neither the adoption of the Plan by the
Board nor the submission of the Plan to shareholders of the Company for approval (to the extent required under Applicable Law),
shall be construed as creating any limitations on the power or authority of the Board to adopt such other or additional incentive
or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation
of any other plan, practice or arrangement for the payment of compensation or fringe benefits to employees generally, or to any
class or group of employees, which the Company or any Subsidiary now has lawfully put into effect, including, without limitation,
any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term or
long-term incentive plans.

 

29. MISCELLANEOUS.

 

29.1. Additional Terms. Each Award awarded
under the Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee,
in its sole discretion.

 

29.2. Severability. If any provision of
the Plan or any Option Agreement, Restricted Share Agreement, Restricted Share Unit Agreement or any other agreement entered into
in connection with an Award shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining
provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain
enforceable in any other jurisdiction. In addition, if any particular provision contained in the Plan or any Option Agreement,
Restricted Share Agreement, Restricted Share Unit Agreement or any other agreement entered into in connection with an Award shall
for any reason be held to be excessively broad as to duration, geographic scope, activity or subject, it shall be construed by
limiting and reducing such provision as to such characteristic so that the provision is enforceable to fullest extent compatible
with the Applicable Law as it shall then appear.

 

    	 	18	 

     

    

  

29.3. Captions and Titles. The use of captions
and titles in this Plan or any Option Agreement, Restricted Share Agreement Restricted Share Unit Agreement or any other agreement
entered into in connection with an Award is for the convenience of reference only and shall not affect the meaning of any provision
of the Plan or such agreement.

 

    	 	19Exhibit
10.1

 

DIRECTOR’S
SUPPORT AGREEMENT

 

This
Agreement (this “Agreement”), dated as of May _____, 2016, is
entered into by and between the undersigned director (“Director”) of Cordia Bancorp Inc., a Virginia corporation
(“Cordia”), and First-Citizens Bank & Trust Company, a North Carolina bank (“FCB”). Capitalized
terms used but not defined herein shall have the same meanings provided in the Merger Agreement (as defined below).

 

Whereas,
the Boards of Directors of Cordia and FCB contemplate the acquisition of Cordia by FCB through the merger of a transitory subsidiary
of FCB into and with Cordia (the “Merger”) as described in an Agreement and Plan of Merger (the “Merger Agreement”)
proposed to be entered into between them; and

 

Whereas,
because of the substantial expense that FCB will incur in connection with the transactions contemplated by the Merger Agreement,
concurrent with its execution of the Merger Agreement FCB desires to be assured of support for the Merger by members of Cordia’s
Board of Directors, in their individual capacities; and

 

Whereas,
Director is a stockholder of Cordia and, as a result of the Merger, he would receive cash consideration for his shares of Cordia
Common Stock in the manner to be provided in the Merger Agreement; and

 

Whereas,
Director desires that FCB enter into the Merger Agreement, and FCB is willing to do so on the condition, among others, that each
of Cordia’s directors agree to vote their shares of Cordia Common Stock in favor of the Merger.

 

Now,
Therefore, as an inducement to FCB for it
to execute and deliver the Merger Agreement and incur the substantial expenses that it will incur in connection with the Merger,
and in consideration of the cash consideration to be received by Director for his shares of Cordia Common Stock in the Merger
and the premises and other good and valuable consideration, and intending to be legally bound hereby, Director agrees as described
below.

 

1.            Support
Agreement 

 

(a)          Agreement
to Vote. Exhibit A to this Agreement lists all shares of Cordia Common Stock as to which Director has sole power to vote
or to direct the voting (“Sole Voting Shares”), and all shares of Cordia Common Stock as to which Director has shared
power to vote or to direct the voting (“Shared Voting Shares”), in each case excluding the shares of Cordia Common
Stock also listed on Exhibit A which are held by Director, or with respect to which Director has sole or shared voting power,
solely as a fiduciary for persons other than Director (“Fiduciary Shares”). The Sole Voting Shares and Shared Voting
Shares are sometimes referred to in this Agreement as the “Shares.”

 

At
any meeting of Cordia stockholders, including any adjournment or postponement thereof, at which the Merger Agreement is submitted
for approval (the “Cordia Stockholders' Meeting”), Director agrees to vote or cause or direct to be voted for approval
of the Merger Agreement and the Merger all Sole Voting Shares, and to the extent of his or her power and authority, to vote or
cause to be voted for approval of the Merger Agreement and the Merger all Shared Voting Shares. Director shall not be obligated
to vote any Fiduciary Shares pursuant to this Agreement.

 

    	 		 

     

    

 

(b)          Agreement
to Cooperate. In addition to the specific matters provided for elsewhere herein, Director shall take all action reasonably
requested by FCB to support and to facilitate consummation of the Merger and the other transactions described in or contemplated
by the Merger Agreement.

 

(c)          Covenants
of Director. The Director further covenants and agrees as follows:

 

(i)          Restrictions
on Transfer. Until the earlier of the day following the date of final adjournment of the Cordia Stockholders’ Meeting,
or the termination of the Merger Agreement in accordance with its terms, Director will not pledge, hypothecate, grant a security
interest in, sell, transfer or otherwise dispose of or encumber any of the Shares, and will not enter into any agreement, arrangement
or understanding (other than an appointment of proxy solicited by Cordia for the purpose of voting the Shares in accordance with
Section 1 hereof) which would during that term restrict, establish a right of first refusal to, or otherwise relate to, the
transfer or voting of the Shares. Notwithstanding the foregoing, the following transfers of the Shares shall be permitted: (a)
transfers by will or operation of law; (b) transfers pursuant to any pledge agreement, subject to the pledgee agreeing in writing
to be bound by the terms of this Agreement, provided, however that no action shall be required to be taken to obtain a pledge
agreement from any pledgee with respect to any pledge existing as of the date of this Agreement; (c) transfers in connection with
estate or tax planning or similar purposes, including transfers to relatives, trusts, foundations and charitable organizations,
subject to the transferee first agreeing in writing to be bound by the terms of this Agreement; (d) transfers to one or more other
stockholders of Cordia who are bound by a comparable voting agreement with FCB; (e) transfers to any entity with which Director
shares in common an investment manager or advisor that has voting authority with respect to Director’s and the entity’s
investments and which entity is bound, or agrees in writing to be bound, by the terms of this Agreement; and (f) such transfers
as FCB may otherwise permit in its sole discretion.

 

(ii)         Other
Acquisition Proposals. Until the earlier of the day following the date of final adjournment of the Cordia Stockholders'
Meeting, or the termination of the Merger Agreement in accordance with its terms, and to the extent of his or her power and authority,
Director will not directly or indirectly vote or direct or cause to be voted any Shares in favor of, and he or she will vote,
direct or cause the Shares to be voted against, any Acquisition Agreement (as that term is defined in Section 5.02(m) of the Merger
Agreement), other than the Merger Agreement.

 

(iii)        Additional
Shares.  The provisions of this Section 1 shall apply to all Shares currently owned and hereafter acquired, beneficially
or of record, by Director.

 

(d)          No
Prior Proxies. The Director represents, warrants and covenants that any proxies or voting rights previously given with
respect to the Shares are not irrevocable, and that any such proxies or voting rights are irrevocably revoked.

 

(e)          Certain
Events. The Director agrees that this Agreement and the obligations hereunder shall attach to the Shares and shall be
binding upon any person or entity to which legal or beneficial ownership of the Shares shall pass, whether by operation of law
or otherwise, including Stockholder’s successors or assigns. In the event of any stock split, stock dividend, merger, exchange,
reorganization, recapitalization or other change in the capital structure of Cordia affecting the Shares, the number of Shares
subject to the terms of this Agreement shall be appropriately adjusted, and this Agreement and the obligations hereunder shall
attach to any additional Shares issued to or acquired by Director.

 

    	 	2	 

     

    

 

(f)          Capacity
Only as a Stockholder. Except for Section 1(b), this Agreement relates solely to the capacity of Director in his individual
capacity as a stockholder or beneficial owner of the Shares and is not in any way intended to affect or prevent the exercise by
Director of his or her responsibilities as a director or officer of Cordia.

 

(g)          Waiver
of Statutory Appraisal Rights. The Director hereby waives all statutory rights of appraisal or to dissent from the Merger
that he or she, as a stockholder of Cordia, may have with respect to the Shares under Virginia law as a result of the Merger.

 

(h)          Termination;
Responsibility for Default. This Agreement shall terminate upon the earlier of (1) the approval of the Merger Agreement
by Cordia’s stockholders of (2) the termination of the Merger Agreement. If this Agreement is terminated, it shall forthwith
become null and void, and there shall be no further obligation on the part of Director, except that nothing in this Section 1
shall relieve Director from any liability for breach of this Agreement before such termination.

 

(i)          Specific
Performance. The parties hereto agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed by Director in accordance with their specific terms or were otherwise breached. FCB shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement by Director and to enforce specifically the terms and provisions
hereof, this being in addition to any other remedy to which FCB is entitled at law or in equity. The Director waives the posting
of any bond or security in connection with any proceeding related thereto.

 

2.
          Amendments.

 

This
Agreement may not be modified, amended, altered or supplemented except by execution and delivery of a written agreement by all
of the parties hereto.

 

3.           Governing
Law.

 

This
Agreement shall in all respects be governed by and construed in accordance with the laws of Virginia without regard to the conflict
of law principles thereof.

 

4.           Benefit
of Agreement; Assignment.

 

This
Agreement shall be binding upon and inure to the benefit of, and shall be enforceable by, the parties hereto and their respective
personal representatives, successors and assigns, except that the Director may not transfer or assign any of his or her rights
or obligations hereunder without the prior written consent of FCB.

 

5.            Counterparts.

 

This
Agreement may be executed in one or more counterparts, and by the different parties in separate counterparts, each of which shall
be deemed to be an original, but all of which shall constitute one and the same agreement.

 

    	 	3	 

     

    

 

[Signature
Page Follows]

 

    	 	4	 

     

    

 

In
Witness Whereof, FCB and the undersigned
director and stockholder of Cordia each has caused this Agreement to be duly executed as of the day and year first above written.

 

	 	Director
	 	 
	 	 
	 	 
	 	Print
    Name: 	 

 

	 	First-Citizens
    Bank & Trust Company
	 	 
	 	By:	 
	 	 	Craig L. Nix
	 	 	Chief Financial
    Officer

 

    	 		 

     

    

 

Exhibit
A

 

Sole
Voting Shares

 

	Number
    of Shares	 	How
    Held
		 	
	 	 	 
	 	 	 
	 	 	 

 

Shared
Voting Shares

 

	Number
    of Shares	 	How
    Held
		 	
	 	 	 
	 	 	 
	 	 	 

 

Fiduciary
Shares

 

	Number
    of Shares	 	How
    Held

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00258-of-00352.parquet"}]]