Document:

Exhibit 4.2

                             STOCK OPTION AGREEMENT

            AGREEMENT, dated as of December 21st, 2004, by and between BioCoral,
Inc., a Delaware corporation with its principal place of business 38 rue Anatole
France, Levallois-Perret Cedex, France (the "Company") and , with his office c/o
the Compagny (the "Optionee).

                              W I T N E S S E T H:

            WHEREAS, effective as of December 21st, 2004, the Board of Directors
of the Company resolved to grant to grant an option (the "Option") to the
Optionee for the purchase of up to __________________ shares of the Company's
common stock, par value $.001 per share (the "Common Stock") at a price of $
10.00 (US) per share on the terms and conditions hereinafter set forth.

            NOW, THEREFOR, in consideration of the mutual covenants contained
herein, the parties hereto agree as follows :

      1. Grant of option. Subject to all the terms and conditions hereof, the
Company hereby grants to Optionee the right to purchase all or any part of an
aggregate of _______________ shares Common Stock of the Company (the "Option
Shares") at an exercise price of $ 10.00 (US) per share, on the terms and
conditions set forth in this Agreement.

      2. Exercisability of Option. The Option Shares subject to the Option shall
become purchasable beginning at any time and from time to time beginning on the
date hereof and for a period of 60 months thereafter, and after the expiration
date (The "Expiration Date"), this option and all rights hereunder shall expire
and any Option Shares not purchased on or before the Expiration Date may not
thereafter be purchased hereunder. In the event Optionee fails to exercise the
option on or prior to the Expiration Date, then the Option as to all Option
Shares not exercised shall expire and Optionee shall have no rights with respect
to such remainder of the Option or the Option Shares.

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<PAGE>

      3. Consideration for Grant of Option. The consideration for grant of the
Option is $10, the receipt of which is hereby acknowledged.

      4. Method of Exercise of Option; Payment of Option Purchase Price. This
Option shall be exercisable at any time and from time to time, prior to the
Expiration Date, by written notice (the "Notice") to the Company at it office,
presently located at 38 rue Anatole France, Levallois-Perret Cedex, FRANCE. The
Notice shall state the Optionee's election to exercise this Option and the
number of Option Shares in respect of which it is being exercised, and shall be
accompanied by a check in the amount of the Exercise Price. Upon payment of the
full purchase price of the Option Shares by Optionee, the Company shall deliver
a certificate or certificates representing those shares. A certificate or
certificates for the shares as to which this Option shall have been so exercised
shall be registered in the name of the Optionee and shall be delivered to
Optionee at the address of Optionee specified in the Notice or at such other
address as Optionee shall set forth in its Notice.

      5. Non-Assignability of Option. This Option may be exercised only by the
Optionee and shall not be sold, transferred, assigned, pledged, hypothecated or
otherwise disposed of in any way (wheter by operation of law or otherwise)
without the Company's prior written consent except that Optionee may, solely in
connection with a transfer of all or substantially all of his assets to an
entity or entities controlled by Optionee ("Affiliate"), sell, transfer or
assign all its interest in this Agreement to such Affiliate but only after
giving the Company at least thirty days notice in writing of the proposed sale,
transfer or assignment. Any buyer, transferee, or assignee of this Option Shall
be bound by and subject to each and very provision of this Agreement and shall
not sell, transfer, assign, pledge, hypothecate or otherwise dispose of the
Option in any way (whether by operation of law or otherwise).

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      6. Adjustments to Preserve Option Benefits.

            If the outstanding shares of the Company's Common Stock are
exchanged for a different number of kind of shares or securities of the Company
through stock splits, reverse stock splits, stock dividends, re-capitalization
or other changes in the stock of the Company, an appropriate and proportionate
adjustment shall be made in the number and kind of shares issued upon any
subsequent exercise of this Option without any change in the aggregate purchase
price to be paid for such shares. For any and all such purposes, but only for
such purposes, Optionee shall be considered to be a shareholder of record of the
Company as of the date of this Option Agreement. Nothing in this Agreement shall
preclude the Corporation from issuing additional shares of Common Stock to any
third party.

      7. Limitation of Optionee's Rights. Except as otherwise provided in
Section 6 above, Optionee shall not have any of the rights or privileges of a
shareholder of the Company in respect of any Option Shares issuable upon
exercise of this Option unless and until those shares have been paid for in full
and upon such payment in full Optionee shall be deemed to be the record holder.

      8 .Purchase for Investment. The Optionee represents and agrees that if the
Optionee exercises this Option in whole or in part then those Option Shares so
acquired will be acquired for the purpose of investment and not with a view to
their resale or distribution and upon each exercise of this Option, the Optionee
will furnish to the Company a written statement to that effect, satisfactory in
form and substance to the Company and its counsel. Optionee understands and
acknowledges that the shares to be acquired pursuant to this Option will be
"restricted securities" as such term is defined under the Securities Act of
1933, as amended (the "Act" ) and accordingly will bear a legend indicating such
restrictions.

      9. Representations and Warranties of Optionee. As a condition to receipt
of the Option and for other good and valuable consideration, receipt of which is
hereby acknowledges,the Optionee

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<PAGE>

represents and warrants to the Company as follows:

            (i) Optionee acknowledges that Company is a development stage
company with no significant operating history and that there are significant
risks associated with the Company's business. Accordingly, the value of the
Option and the Option Shares will be based upon the Company's development of its
business which is subject to significant risks; and

            (ii) Optionee understands that the Option and the Option Shares
(issuable upon exercise of the Option) are being offered and sold under an
exemption from registration provided by Section 4 of the Act and regulations
promulgated thereunder, as well as applicable State law exemptions, and warrants
and represents that the Option and the Option Shares are being or will be (in
the case of Option Shares) acquired by the undersigned solely for the
undersigned's own account, for investment purposes only, and are not being
purchased with the intent or view to resell the Option and Option Shares or for
the resale, distribution, subdivision or fractionalization thereof.
Consequently, the undersigned must bear the economic risk of the investment for
an indefinite period of time because the Option and the Option Shares cannot be
resold or otherwise transferred unless subsequently registered under the act and
qualified under applicable State law or an opinion of qualified counsel that
indicates an exemption from registration and/or qualification is available.

      10. Notice. Any notice to be given under the terms of this option shall be
in writing and address to the Company at the Company's then-present address or
to Optionee at the address provided herein, or at such other address as either
party may hereafter designate in writing to the other. Any notice or other
communication given hereunder shall have been deemed duly given when enclosed in
a properly sealed envelope addressed as aforesaid, registered or certified, and
deposited postage prepaid in a post office or branch post office or, in person,
when so delivered, or by Federal Express or similar overnight courier providing
evidence of receipt.

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<PAGE>

      11. Representations of Company. The Company represent: (i) the execution,
delivery and performance of this Agreement has been duly authorized by the Board
of Director of the Company; (ii) the consummation of the transactions
contemplated by this Agreement will not violate any provision of the Company's
Certificate of Incorporation or Bylaws; and (iii) no consent of any third party
including, without limitation, federal or state regulator agencies is required
for execution and performance of this Agreement by the Company.

      12. Governing Law. This Agreement shall be deemed to be made under and
shall be construed in accordance with the laws of the State of Delaware and
applicable Federal law without regard to conflict of law principles.

      13. Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their legal successors and permitted
assigns.

      14. Entire Understanding; Masculine / Feminine. This Agreement constitutes
the entire understanding of the parties and shall not be amended except by
written agreement between the parties. As used herein, the masculine form shall
include the feminine and vice-versa, as the context shall require.

            IN WITNESS WHEREOF, the parties hereto have executed this Agreement
as of the day and year first above written.

                                            BIOCORAL, INC.

                                            By:
                                               -----------------------------

                                            OPTIONEE

                                            By:
                                               -----------------------------

                                       5S-8

EXHIBIT 4.1  

TOP IMAGE SYSTEMS LTD. 

THE 2003 ISRAELI SHARE
OPTION PLAN 

(*In compliance with
Amendment No. 132 of the Israeli Tax Ordinance, 2002) 

TABLE OF CONTENTS 

	 	
	 	
	 	
	 	
	 	
	1. PURPOSE OF THE ISOP 	2 
	2. DEFINITIONS 	2 
	3. ADMINISTRATION OF THE ISOP 	4 
	4. DESIGNATION OF PARTICIPANTS 	4 
	5. DESIGNATION OF OPTIONS PURSUANT TO SECTION 102 	4 
	6. TRUSTEE 	5 
	7. SHARES RESERVED FOR THE ISOP 	6 
	8. PURCHASE PRICE 	6 
	9. ADJUSTMENTS 	6 
	10. TERM AND EXERCISE OF OPTIONS 	7 
	11. VESTING OF OPTIONS 	8 
	12. PURCHASE FOR INVESTMENT 	8 
	13. DIVIDENDS 	8 
	14. RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS 	8 
	15. EFFECTIVE DATE AND DURATION OF THE ISOP 	9 
	16. AMENDMENTS OR TERMINATION 	9 
	17. GOVERNMENT REGULATIONS 	9 
	18. CONTINUANCE OF EMPLOYMENT 	9 
	19. GOVERNING LAW & JURISDICTION 	9 
	20. TAX CONSEQUENCES 	9 
	21. NON-EXCLUSIVITY OF THE ISOP 	9 
	22. MULTIPLE AGREEMENTS 	9 

This plan, as amended from time to time, shall be known as Top Image Systems Ltd. 2003 Israeli Share Option Plan
(the “ISOP”). 

	1.  	PURPOSE
OF THE ISOP  

	 	
The
ISOP is intended to provide an incentive to retain, in the employ of the Company
and its Affiliates (as defined below), persons of training, experience, and ability, to
attract new employees, directors, consultants, service providers and any other entity
which the Board shall decide their services are considered valuable to the Company, to
encourage the sense of proprietorship of such persons, and to stimulate the active
interest of such persons in the development and financial success of the Company by
providing them with opportunities to purchase shares in the Company, pursuant to the
ISOP.  

	2.  	DEFINITIONS  

	 	
For
purposes of the ISOP and related documents, including the Option Agreement, the following
definitions shall apply:  

	 	2.1 	“Affiliate” means
any "employing company" within the meaning of Section 102(a) of the Ordinance. 

	 	2.2 	“Approved
102 Option” means an Option granted pursuant to Section 102(b) of the Ordinance
and held in trust by a Trustee for the benefit of the Optionee. 

	 	2.3 	“Board” means
the Board of Directors of the Company. 

	 	2.4 	“Capital
Gain Option (CGO)” as defined in Section 5.4 below. 

	 	2.5 	“Cause” means,
(i) conviction of any felony involving moral turpitude or affecting the Company; (ii) any
refusal to carry out a reasonable directive of the chief executive officer, the Board or
the Optionee’s direct supervisor, which involves the business of the Company or its
Affiliates and was capable of being lawfully performed; (iii) embezzlement of funds of
the Company or its Affiliates; (iv) any breach of the Optionee’s fiduciary duties or
duties of care of the Company; including without limitation disclosure of confidential
information of the Company; and (v) any conduct (other than conduct in good faith)
reasonably determined by the Board to be materially detrimental to the Company. 

	 	2.6 	“Chairman” means
the chairman of the Committee. 

	 	2.7 	“Code” means
the United States Internal Revenue Code of 1986, as now in effect or as hereafter
amended. 

	 	2.8 	“Committee” means
a share option compensation committee of the Board, designated from time to time by the
resolution of the Board, which shall consist of no fewer than two members of the Board.
The Committee shall consist of directors who are “outside directors” as defined
in Section 162(m) of the Code and “Non-Employee Directors” as defined in Rule
16b-3 promulgated by the Securities and Exchange Commission under the United States
Securities Exchange Act of 1934. 

	 	2.9 	“Company” means
Top Image Systems Ltd., an Israeli Company. 

	 	2.10 	“Companies
Law” means the Israeli Companies Law 5759-1999. 

	 	2.11 	“Controlling
Shareholder” shall have the meaning ascribed to it in Section 32(9) of the
Ordinance. 

	 	2.12 	“Date
of Grant” means, the date of grant of an Option, as determined by the Board or
authorized Committee and set forth in the Optionee’s Option Agreement. 

	 	2.13 	“Employee” means
a person who is employed by the Company or its Affiliates, including an individual who is
serving as a director or an office holder, but excluding Controlling Shareholder. 

	 	2.14 	“ Expiration
date” means the date upon which an Option shall expire, as set forth in Section
10.2 of the ISOP. 

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

2

	 	
(i)
If the Shares are listed on any established stock exchange or a national market
                    system, including without limitation the NASDAQ National Market
system, or the                     NASDAQ SmallCap Market of the NASDAQ Stock Market, the
Fair Market Value shall                     be the closing sales price for such Shares
(or the closing bid, if no sales were                     reported), as quoted on such
exchange or system for the last market trading day                     prior to time of
determination, as reported in the Wall Street Journal, or such                     other
source as the Board deems reliable.  

	 	
Without
derogating from the above, solely for the purpose of determining the tax liability
pursuant to Section 102(b)(3) of the Ordinance, if at 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, the Fair Market Value of a Share at the Date of Grant shall be
determined in accordance with the average value of the Company’s shares on the
thirty (30) trading days preceding the Date of Grant or on the thirty (30) trading days
following the date of registration for trading, as the case may be;  

	 	
(ii)
If the Shares are regularly quoted by a recognized securities dealer but
                    selling prices are not reported, the Fair Market Value shall be the
mean between                     the high bid and low asked prices for the Shares on the
last market trading day                     prior to the day of determination, or;  

	 	
(iii)
In the absence of an established market for the Shares, the Fair Market Value
                    thereof shall be determined in good faith by the Board.  

	 	2.16 	“ISOP” means
this 2003 Israeli Share Option Plan. 

	 	2.17 	“ITA” means
the Israeli Tax Authorities. 

	 	2.18 	“Non-Employee” means
a consultant, adviser, service provider, Controlling Shareholder or any other
         person who is not an Employee.

	 	2.19 	“Ordinary
Income Option (OIO)” as defined in Section 5.5 below.

	 	2.20 	“Option” means
an option to purchase one or more Shares of the Company pursuant to the ISOP.

	 	2.21 	“102
Option” means any Option granted to Employees pursuant to Section 102 of the
Ordinance.

	 	2.22 	“3(i)
Option” means an Option granted pursuant to Section 3(i) of the Ordinance to any
person who is Non- Employee.

	 	2.23 	“Optionee” means
a person who receives or holds an Option under the ISOP.

	 	2.24 	“Option
Agreement” means the share option agreement between the Company and an Optionee
that sets out the terms and conditions of an Option. 

	 	2.25 	“Ordinance” means
the 1961 Israeli Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter
amended. 

	 	2.26 	“Purchase
Price” means the price for each Share subject to an Option.

	 	2.27 	“Section
102” means section 102 of the Ordinance as now in effect or as hereafter amended.

	 	2.28 	“Share” means
the ordinary shares, NIS 0.04 par value each, of the Company.

	 	2.29 	“Successor
Company” means any entity the Company is merged to or is acquired by, in which
the Company is          not the surviving entity.

	 	2.30 	“Transaction” means
(i) merger, acquisition or reorganization of the Company with one or more other entities
in which the Company is not the surviving entity, (ii) a sale of all or substantially all
of the assets of the Company. 

	 	2.31 	“Trustee” means
any individual appointed by the Company to serve as a trustee and approved by the ITA,
all in accordance with the provisions of Section 102(a) of the Ordinance. 

3

	 	2.32 	“Unapproved
102 Option” means an Option granted pursuant to Section 102(c) of the Ordinance
and not held in trust by a Trustee. 

	 	2.33 	“Vested
Option”  means any Option, which has already been vested according to the
Vesting Dates.

	 	2.34 	“Vesting
Dates” means, as determined by the Board or by the Committee, the date as of
which the Optionee shall be entitled to exercise the Options or part of the Options, as
set forth in section 11 of the ISOP. 

	3.  	ADMINISTRATION
OF THE ISOP  

	 	3.1 	The
Board shall have the power to administer the ISOP either directly or upon the
recommendation of the Committee, all as provided by applicable law and in the Company’s
Articles of Association. Notwithstanding the above, the Board shall automatically have
residual authority: (i) if no Committee shall be constituted or; (ii) if such Committee
shall cease to operate for any reason or; (iii) with respect to the rights not delegated
by the Board to the Committee. 

	 	3.2 	The
Committee shall select one of its members as its Chairman and shall hold its meetings at
such times and places as the Chairman shall determine. The Committee shall keep records
of its meetings and shall make such rules and regulations for the conduct of its business
as it shall deem advisable. 

	 	3.3 	The
Committee shall have the power to recommend to the Board and the Board shall have the
full power and authority to: (i) designate participants; (ii) determine the terms and
provisions of the respective Option Agreements, including, but not limited to, the number
of Options to be granted to each Optionee, the number of Shares to be covered by each
Option, provisions concerning the time and the extent to which the Options may be
exercised and the nature and duration of restrictions as to the transferability or
restrictions constituting substantial risk of forfeiture and to cancel or suspend awards,
as necessary; (iii) determine the Fair Market Value of the Shares covered by each Option;
(iv) make an election as to the type of Approved 102 Option; and (v) designate the type
of Options. The Board shall be entitled to delegate its powers detailed herein above to
the Committee according to its discretion and to the extent permitted by law. 

	 	
The
Committee shall have full power and authority to (i) interpret the provisions and
supervise the administration of the ISOP; (ii) accelerate the right of an Optionee to
exercise in whole or in part, any previously granted Option; (iii) determine the Purchase
Price of the Option;  

	 	3.4 	Notwithstanding
the above, the Committee shall not be entitled to grant Options to the Optionees,
however, it will be authorized to issue Shares underlying Options which have been granted
by the Board and duly exercised pursuant to the provisions herein in accordance with
section 112(a)(5) of the Companies Law. 

	 	3.5	The
Board shall have the authority to grant, at its discretion, to the holder of an
outstanding Option, in exchange for the surrender and cancellation of such Option, a new
Option having a purchase price equal to, lower than or higher than the Purchase Price of
the original Option so surrendered and canceled and containing such other terms and
conditions as the Committee may prescribe in accordance with the provisions of the ISOP. 

	 	3.6	The
interpretation and construction by the Committee of any provision of the ISOP or of any
Option Agreement thereunder shall be final and conclusive unless otherwise determined by
the Board. 

	 	3.7	No
member of the Board or of the Committee shall be liable for any act or determination made
in good faith with respect to the ISOP or any Option granted thereunder. 

	4.  	DESIGNATION
OF PARTICIPANTS  

	 	4.1 	The
persons eligible for participation in the ISOP as Optionees shall include any Employees
and/or Non-Employees of the Company or of any Affiliate; provided, however, that (i)
Employees may only be granted 102 Options; (ii) Non-Employees may only be granted 3(i)
Options . 

	 	4.2 	The
grant of an Option hereunder shall neither entitle the Optionee to participate nor
disqualify the Optionee from participating in, any other grant of Options pursuant to the
ISOP or any other option or share plan of the Company or any of its Affiliates. 

4

	5.  	DESIGNATION
OF OPTIONS PURSUANT TO SECTION 102  

	 	5.1 	The
Company may designate Options granted to Employees  pursuant to Section 102 as Unapproved
102 Options or Approved 102 Options.

	 	5.2 	The
grant of Approved 102 Options shall be made under this ISOP adopted by the Board as
described in Section 15 below, and shall be conditioned upon the approval of this ISOP by
the ITA as required by Section 102. 

	 	5.3 	Approved
102 Option may either be classified as Capital Gain Option (“CGO”)
or Ordinary Income Option (“OIO”). 

	 	5.4 	Approved
102 Option elected and designated by the Company to qualify under the capital gain tax
treatment in accordance with the provisions of Section 102(b)(2) shall be referred to
herein as CGO. 

	 	5.5 	Approved
102 Option elected and designated by the Company to qualify under the ordinary income tax
treatment in accordance with the provisions of Section 102(b)(1) shall be referred to
herein as OIO. 

	 	5.6 	The
Company’s election of the type of Approved 102 Options as CGO or OIO granted to
Employees (the “Election”), shall be appropriately filed with the
ITA before the Date of Grant of an Approved 102 Option. Such Election shall become
effective beginning the first Date of Grant of an Approved 102 Option under this ISOP and
shall remain in effect until the end of the year following the year during which the
Company first granted Approved 102 Options. The Election shall obligate the Company to
grant only the type of Approved 102 Option it has elected, and shall apply to all
Optionees who were granted Approved 102 Options during the period indicated herein, all
in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance
of doubt, such Election shall not prevent the Company from granting Unapproved 102
Options simultaneously. 

	 	5.7 	All
Approved 102 Options must be held in trust by a Trustee, as described in Section 6 below.

	 	5.8 	For
the avoidance of doubt, the designation of Unapproved 102 Options and Approved 102
Options shall be subject to the terms and conditions set forth in Section 102 of the
Ordinance and the regulations promulgated thereunder. 

	 	5.9 	With
regards to Approved 102 Options, the provisions of the ISOP and/or the Option Agreement
shall be subject to the provisions of Section 102 and the Tax Assessing Officer’s
permit, and the said provisions and permit shall be deemed an integral part of the ISOP
and of the Option Agreement. Any provision of Section 102 and/or the said permit which is
necessary in order to receive and/or to keep any tax benefit pursuant to Section 102,
which is not expressly specified in the ISOP or the Option Agreement, shall be considered
binding upon the Company and the Optionees. 

	6.  	GRANT
OF OPTIONS AND ISSUANCE OF SHARES IN TRUST  

	 	6.1 	Approved
102 Options which shall be granted under the ISOP and/or any Shares allocated or issued
upon exercise of such Approved 102 Options and/or other shares received subsequently
following any realization of rights, including without limitation bonus shares, shall be
allocated or issued to the Trustee and held for the benefit of the Optionees for such
period of time as required by Section 102 or any regulations, rules or orders or
procedures promulgated thereunder (the “Holding Period”). In the
case the requirements for Approved 102 Options are not met, then the Approved 102 Options
may be treated as Unapproved 102 Options, all in accordance with the provisions of
Section 102 and regulations promulgated thereunder. 

	 	6.2 	Notwithstanding
anything to the contrary, the Trustee shall not release any Shares allocated or issued
upon exercise of Approved 102 Options prior to the full payment of the Optionee’s
tax liabilities arising from Approved 102 Options which were granted to him and/or any
Shares allocated or issued upon exercise of such Options. 

	 	6.3 	With
respect to any Approved 102 Option, subject to the provisions of Section 102 and any
rules or regulation or orders or procedures promulgated thereunder, an Optionee shall not
be entitled to sell or release from trust any Share received upon the exercise of an
Approved 102 Option and/or any share received subsequently following any realization of
rights, including without limitation, bonus shares, until the lapse of the Holding Period
required under Section 102 of the Ordinance. 

	 	6.4 	Upon
receipt of Approved 102 Option, the Optionee will sign an undertaking to release the
Trustee from any liability in respect of any action or decision duly taken and bona fide
executed in relation with the ISOP, or any Approved 102 Option or Share granted to him
thereunder. 

5

	7.  	SHARES
RESERVED FOR THE ISOP; RESTRICTION THEREON 

	 	7.1 	The
Company has reserved the minimum number of 181,242 (One hundred and eighty one thousand,
two hundred and forty two) (the “Minimum Number”) authorized but
unissued Shares, for the purposes of the ISOP and for the purposes of any other share
option plans which may be adopted by the Company in the future, subject to adjustment as
set forth in Section 9 below. The Minimum Number may be increased by a number of shares
that shall reflect the number of expired “Old Options”. Any
Shares which remain unissued and which are not subject to the outstanding Options at the
termination of the ISOP shall cease to be reserved for the purpose of the ISOP, but until
termination of the ISOP the Company shall at all times reserve sufficient number of
Shares to meet the requirements of the ISOP. Should any Option for any reason expire or
be canceled prior to its exercise or relinquishment in full, the Shares subject to such
Option may again be subjected to an Option under the ISOP or under the Company’s
other share option plans. 

	 	
For
the purpose of this Plan, Old Options shall mean options granted out of the Company’s
terminated option plans (Top Image Systems Ltd. Employee Share Option Plan (2000) and Top
Image Systems Ltd. Employee Stock Option Plan from 1996) which are currently outstanding
and shall expire within their original lifetime. The number of Old Options shall not
exceed 539,242 (Five hundred thousand and thirty nine two hundred forty two).  

	 	7.2 	Each
Option granted pursuant to the ISOP, shall be evidenced by a written Option Agreement
between the Company and the Optionee, in such form as the Board or the Committee shall
from time to time approve. Each Option Agreement shall state, among other matters, the
number of Shares to which the Option relates, the type of Option granted thereunder
(whether a CGO, OIO, Unapproved 102 Option or a 3(i) Option), the Vesting Dates, the
Purchase Price per share, the Expiration Date and such other terms and conditions as the
Committee or the Board in its discretion may prescribe, provided that they are consistent
with this ISOP. 

	8.  	PURCHASE
PRICE  

	 	8.1 	The
Purchase Price of each Share subject to an Option shall be determined by the Committee in
its sole and absolute discretion in accordance with applicable law, subject to any
guidelines as may be determined by the Board from time to time. Each Option Agreement
will contain the Purchase Price determined for each Optionee. 

	 	8.2 	The
Purchase Price shall be payable upon the exercise of the Option in a form satisfactory to
the Committee, including without limitation, by cash or check. The Committee shall have
the authority to postpone the date of payment on such terms as it may determine. 

	 	8.3 	The
Purchase Price shall be denominated in the currency of the primary economic environment
of, either the Company or the Optionee (that is the functional currency of the Company or
the currency in which the Optionee is paid) as determined by the Company. 

	9.  	ADJUSTMENTS  

	 	
Upon
the occurrence of any of the following described events, Optionee’s rights to
purchase Shares under the ISOP shall be adjusted as hereafter provided:  

	 	9.1	In
the event of Transaction, the unexercised Options then outstanding under the ISOP shall
be assumed or substituted by an appropriate number of shares of each class of shares or
other securities of the Successor Company (or a parent or subsidiary of the Successor
Company) as shall be determined within the Transaction. In the case of such assumption
and/or substitution of Options, appropriate adjustments shall be made to the Purchase
Price for reflection of such action and all other terms and conditions of the Option
Agreements shall remain unchanged, including but not limited to the vesting schedule, all
subject to the determination of the Board, which determination shall be in its sole
discretion and final. The Company shall notify the Optionee of the Transaction in such
form and method as it deems applicable at least fifteen (15) days prior to the effective
date of such Transaction. 

	 	9.2	Notwithstanding
the above and subject to any applicable law, if in any such Transaction as described in
section 9.1 above, the Successor Company (or parent or subsidiary of the Successor
Company) does not agree to assume or substitute for the Options, all of the outstanding
Options shall become exercisable immediately including outstanding Options that were not
otherwise exercisable at the time of the Transaction and any Option may be exercised for
a period of 15 days. 

6

	 	9.3	If
the Company is voluntarily liquidated or dissolved while unexercised Options remain
outstanding under the ISOP, the Company shall immediately notify all unexercised Option
holders of such liquidation, and the Option holders shall have the right to exercise any
unexercised Vested Option held by them at that time until fifteen (15) days prior to such
voluntary liquidation or dissolution, in accordance with the exercise procedure set forth
herein and as long as such Vested Option has not expired prior to the date defined
herein. To the extent it was not previously exercised, all remaining outstanding Options
will terminate immediately prior to the consummation of such proposed action. 

	 	9.4	If
the outstanding shares of the Company shall at any time be changed or exchanged by
declaration of a share dividend (bonus shares), share split, combination or exchange of
shares, recapitalization, or any other like event by or of the Company, and as often as
the same shall occur, then the number, class and kind of the Shares subject to the ISOP
or subject to any Options therefore granted, and the Purchase Prices, shall be
appropriately and equitably adjusted so as to maintain the proportionate number of Shares
without changing the aggregate Purchase Price, provided, however, that no adjustment
shall be made by reason of the distribution of subscription rights (rights offering) on
outstanding shares. Upon happening of any of the foregoing, the class and aggregate
number of Shares issuable pursuant to the ISOP (as set forth in Section 7 hereof), in
respect of which Options have not yet been exercised, shall be appropriately adjusted,
all as will be determined by the Board whose determination shall be final. 

	10.  	TERM
AND EXERCISE OF OPTIONS  

	 	10.1 	Options
shall be exercised by the Optionee by giving written notice to the Company and/or to any
third party designated by the Company (the “Representative”), in such
form and method as may be determined by the Company and when applicable, by the Trustee
in accordance with the requirements of Section 102, which exercise shall be effective
upon receipt of such notice by the Company and/or the Representative and the payment of
the Purchase Price at the Company’s or the Representative’s principal office.
The notice shall specify the number of Shares with respect to which the Option is being
exercised. 

	 	10.2 	Options,
to the extent not previously exercised, shall terminate forthwith upon the earlier of:
(i) the date set forth in the Option Agreement; and (ii) the expiration of any extended
period in any of the events set forth in section 10.5 below. 

	 	10.3 	The
Options may be exercised by the Optionee in whole at any time or in part from time to
time, to the extent that the Options become vested and exercisable, prior to the
Expiration Date, and provided that, subject to the provisions of section 10.5 below, the
Optionee is employed by or providing services to the Company or any of its Affiliates, at
all times during the period beginning with the granting of the Option and ending upon the
date of exercise. 

	 	10.4 	Subject
to the provisions of section 10.5 below, in the event of termination of Optionee’s
employment or services, with the Company or any of its Affiliates, all Options granted to
such Optionee will immediately expire upon his termination date. For the avoidance of
doubt, in case of such termination of employment or service, the unvested portion of the
Optionee’s Option shall not vest and shall not become exercisable unless such
vesting is scheduled prior to the date of termination. 

	 	10.5 	Notwithstanding
anything to the contrary hereinabove and unless otherwise determined in the Optionee’s
Option Agreement, an Option may be exercised after the date of termination of Optionee’s
employment or service with the Company or any Affiliates during an additional period of
time beyond the date of such termination, but only with respect to the number of Vested
Options at the time of such termination according to the Vesting Dates, if:

	 	(i) 	termination
is without Cause, in which event any Vested Option still in force                and
unexpired may be exercised within a period of ninety (90) days after the
               date of such termination; or –  

	 	(ii) 	termination
is the result of death or disability of the Optionee, in which event                any
Vested Option still in force and unexpired may be exercised within a period
               of twelve (12) months after the date of such termination; or – 

	 	(iii) 	prior
to the date of such termination, the Committee or the Board shall
               authorize an extension of the terms of all or part of the Vested Options
beyond                the date of such termination for a period not to exceed the period
during which                the Options by their terms would otherwise have been
exercisable.  

	 	
For
avoidance of any doubt, if termination of employment or service is for Cause, any
outstanding unexercised Option (whether vested or non-vested), will immediately expire
and terminate, and the Optionee shall not have any right in connection with such
outstanding Options.  

7

	 	10.6 	To
avoid doubt, the Optionees shall not have any of the rights or privileges of shareholders
of the Company in respect of any Shares purchasable upon the exercise of any Option, nor
shall they be deemed to be a class of shareholders or creditors of the Company for
purpose of the operation of sections 350 and 351 of the Companies Law or any successor to
such section, until registration of the Optionee as holder of such Shares in the Company’s
register of shareholders upon exercise of the Option in accordance with the provisions of
the ISOP, but in case of Options and Shares held by the Trustee, subject to the
provisions of Section 6 of the ISOP. 

	 	10.7 	Any
form of Option Agreement authorized by the ISOP may contain such other provisions as the
Committee may, from time to time, deem advisable. 

	 	10.8 	With
respect to Unapproved 102 Option, if the Optionee ceases to be employed by the Company or
any Affiliate, the Optionee shall extend to the Company and/or its Affiliate a security
or guarantee for the payment of tax due at the time of sale of Shares, all in accordance
with the provisions of Section 102 and the rules, regulation or orders promulgated
thereunder. 

	11.  	VESTING
OF OPTIONS  

	 	11.1 	Subject
to the provisions of the ISOP, each Option shall vest following the Vesting Dates and for
the number of Shares as shall be provided in the Option Agreement. However, no Option
shall be exercisable after the Expiration Date. 

	 	11.2 	An
Option may be subject to such other terms and conditions on the time or times when it may
be exercised, as the Committee may deem appropriate. The vesting provisions of individual
Options may vary. 

	12.  	PURCHASE
FOR INVESTMENT  

	 	
The
Company’s obligation to issue or allocate Shares upon exercise of an Option granted
under the ISOP is expressly conditioned upon: (a) the Company’s completion of any
registration or other qualifications of such Shares under all applicable laws, rules and
regulations or (b) representations and undertakings by the Optionee (or his legal
representative, heir or legatee, in the event of the Optionee’s death) to assure
that the sale of the Shares complies with any registration exemption requirements which
the Company in its sole discretion shall deem necessary or advisable. Such required
representations and undertakings may include representations and agreements that such
Optionee (or his legal representative, heir, or legatee): (a) is purchasing such Shares
for investment and not with any present intention of selling or otherwise disposing
thereof; and (b) agrees to have placed upon the face and reverse of any certificates
evidencing such Shares a legend setting forth (i) any representations and undertakings
which such Optionee has given to the Company or a reference thereto and (ii) that, prior
to effecting any sale or other disposition of any such Shares, the Optionee must furnish
to the Company an opinion of counsel, satisfactory to the Company, that such sale or
disposition will not violate the applicable laws, rules, and regulations, whether of the
State of Israel or of the United States or any other State having jurisdiction over the
Company and the Optionee.  

	13.  	DIVIDENDS  

	 	
With
respect to all Shares (but excluding, for avoidance of any doubt, any unexercised
Options) allocated or issued upon the exercise of Options purchased by the Optionee and
held by the Optionee or by the Trustee, as the case may be, the Optionee shall be
entitled to receive dividends in accordance with the quantity of such Shares, subject to
the provisions of the Company’s Articles of Association (and all amendments thereto)
and subject to any applicable taxation on distribution of dividends, and when applicable
subject to the provisions of Section 102 and the rules, regulations or orders promulgated
thereunder.  

	14.  	RESTRICTIONS
ON ASSIGNABILITY AND SALE OF OPTIONS  

	 	14.1 	No
Option or any right with respect thereto, purchasable hereunder, whether fully paid or
not, shall be assignable, transferable or given as collateral or any right with respect
to it given to any third party whatsoever, except as specifically allowed under the ISOP,
and during the lifetime of the Optionee each and all of such Optionee’s rights to
purchase Shares hereunder shall be exercisable only by the Optionee. 

	 	
Any
such action made directly or indirectly, for an immediate validation or for a future one,
shall be void.  

	 	14.2 	As
long as Options and/or Shares are held by the Trustee on behalf of the Optionee, all
rights of the Optionee over the Shares are personal, can not be transferred, assigned,
pledged or mortgaged, other than by will or pursuant to the laws of descent and
distribution. 

8

	15.  	EFFECTIVE
DATE AND DURATION OF THE ISOP  

	 	
The
ISOP shall be effective as of the day it was adopted by the Board and shall terminate at
the end of seven (7) years from such day of adoption.  

	16.  	AMENDMENTS
OR TERMINATION  

	 	
The
Board may at any time, but when applicable, after consultation with the Trustee, amend,
alter, suspend or terminate the ISOP. No amendment, alteration, suspension or termination
of the ISOP shall impair the rights of any Optionee, unless mutually agreed otherwise
between the Optionee and the Company, which agreement must be in writing and signed by
the Optionee and the Company. Termination of the ISOP shall not affect the Committee’s
ability to exercise the powers granted to it hereunder with respect to Options granted
under the ISOP prior to the date of such termination.  

	17.  	LAWS,
GOVERNMENT REGULATIONS  

	 	
The
ISOP, and the granting and exercise of Options hereunder, and the obligation of the
Company to sell and deliver Shares under such Options, shall be subject to all applicable
laws, rules, and regulations, whether of the State of Israel or of the United States or
any other State having jurisdiction over the Company and the Optionee, including the
registration of the Shares under the United States Securities Act of 1933, and the
Ordinance and to such approvals according to any law and/or by any governmental agencies
or national securities exchanges as may be required. Nothing herein shall be deemed to
require the Company to register the Shares under the securities laws of any jurisdiction.  

	18.  	CONTINUANCE
OF EMPLOYMENT OR HIRED SERVICES  

	 	
Neither
the ISOP nor the Option Agreement with the Optionee shall impose any obligation on the
Company or an Affiliate thereof, to continue any Optionee in its employ or service, and
nothing in the ISOP or in any Option granted pursuant thereto shall confer upon any
Optionee any right to continue in the employ or service of the Company or an Affiliate
thereof or restrict the right of the Company or an Affiliate thereof to terminate such
employment or service at any time.  

	19.  	GOVERNING
LAW &JURISDICTION  

	 	
The
ISOP shall be governed by and construed and enforced in accordance with the laws of the
State of Israel applicable to contracts made and to be performed therein, without giving
effect to the principles of conflict of laws. The competent courts of Tel-Aviv, Israel
shall have sole jurisdiction in any matters pertaining to the ISOP.  

	20.  	TAX
CONSEQUENCES  

	 	20.1 	Any
tax consequences arising from the grant or exercise of any Option, from the payment for
Shares covered thereby or from any other event or act (of the Company and/or its
Affiliates, the Trustee or the Optionee), hereunder, shall be borne solely by the
Optionee. The Company and/or its Affiliates and/or the Trustee shall withhold taxes
according to the requirements under the applicable laws, rules, and regulations,
including withholding taxes at source. Furthermore, the Optionee shall agree to indemnify
the Company and/or its Affiliates and/or the Trustee and hold them harmless against and
from any and all liability for any such tax or interest or penalty thereon, including
without limitation, liabilities relating to the necessity to withhold, or to have
withheld, any such tax from any payment made to the Optionee. 

	 	20.2 	The
Company and/or, when applicable, the Trustee shall not be required to release any Share
certificate to an Optionee until all required payments have been fully made. 

	21.  	NON-EXCLUSIVITY
OF THE ISOP  

	 	
The
adoption of the ISOP by the Board shall not be construed as amending, modifying or
rescinding any previously approved incentive arrangements or as creating any limitations
on the power of the Board to adopt such other incentive arrangements as it may deem
desirable, including, without limitation, the granting of Options otherwise than under
the ISOP, and such arrangements may be either applicable generally or only in specific
cases.  

	22.  	MULTIPLE
AGREEMENTS 

	 	
The
terms of each Option may differ from other Options granted under the ISOP at the same
time, or at any other time. The Board may also grant more than one Option to a given
Optionee during the term of the ISOP, either in addition to, or in substitution for, one
or more Options previously granted to that Optionee.  

9

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