Document:

Exhibit 10.3

 

INDEMNIFICATION
AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT (the “Agreement”), dated as of August          ,
2016, is entered into by and between Railvision Ltd., a company incorporated under the laws of the State of Israel, registration
number 5154441541 (the “Company”), and __________, a member of the board of directors of the Company whose
address is ___________________________ (the “Indemnitee”).

 

	WHEREAS,
	Indemnitee
    is an Office Holder (“Nosse Misra”), as such term is defined in the Companies Law, 5759–1999 (the
    “Companies Law”
    and “Office Holder” respectively), of the Company; 
	 	 
	WHEREAS,	both
    the Company and Indemnitee recognize the risk of litigation and other claims being asserted against Office Holders of companies
    and that highly competent persons are provided with adequate protection through insurance or indemnification against inordinate
    risks of claims and actions against them arising out of their service to, and activities on behalf of, companies; 
	 	 
	WHEREAS,	the
    Articles of Association of the Company authorize the Company to indemnify (or pay incurred expenses) its Office Holders and
    provide for insurance and exculpation to its Office Holders, in each case, to the fullest extent permitted by applicable law;
    
	 	 
	WHEREAS,	the
    Company has determined that it is reasonable, prudent and necessary for the Company to indemnify its Office Holders to the
    fullest extent permitted by applicable law, so that they will serve or continue to serve the Company free from undue concern
    that they will not be so indemnified; 
	 	 
	WHEREAS,	The
    Company wishes to undertake the indemnification and the payment of expenses to Indemnitee to the fullest extent permitted
    by applicable law and provide for insurance and exculpation of Indemnitee, all as set forth in this Agreement.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

	1.	INDEMNIFICATION
                                         AND INSURANCE.

 

		1.1.	The
                                         Company hereby undertakes to indemnify Indemnitee to the fullest extent permitted by
                                         applicable law for any liability and expense specified in Sections ‎1.1.1 through
                                         ‎1.1.4 below, imposed on Indemnitee due to or in connection with an act performed
                                         by such Indemnitee, either prior to or after the date hereof, in Indemnitee’s capacity
                                         as an Office Holder, including, without limitation, as a director, officer, employee,
                                         agent or fiduciary of the Company, any subsidiary thereof or any other corporation, collaboration,
                                         partnership, joint venture, trust or other enterprise, in which Indemnitee serves at
                                         any time as such Office Holder at the request of the Company (the “Corporate
                                         Capacity”). The term “act performed in Indemnitee’s capacity as
                                         an Office Holder” shall include, without limitation, any act, omission and failure
                                         to act relating to or arising from Indemnitee’s service in a Corporate Capacity.
                                         Notwithstanding the foregoing, in the event that the Office Holder is the beneficiary
                                         of an indemnification undertaking provided by a wholly owned subsidiary of the Company,
                                         with respect to his Corporate Capacity with such subsidiary or entity, then the indemnification
                                         obligations of the Company hereunder with respect to such Corporate Capacity shall only
                                         apply to the extent that the indemnification by such subsidiary does not actually fully
                                         cover the indemnifiable liabilities and expenses relating thereto. The following shall
                                         be hereinafter referred to as “Indemnifiable Events”, subject to applicable
                                         law:

 

		1.1.1.	Any
                                         financial liability imposed on Indemnitee in favor of any person pursuant to a judgment,
                                         including a judgment rendered in the context of a settlement or an arbitrator’s
                                         award approved by a court. For purposes of Section ‎1 of this Agreement, the term
                                         “person” shall include, without limitation, a natural person, firm,
                                         partnership, joint venture, trust, company, corporation, limited liability entity, unincorporated
                                         organization, estate, government, municipality, or any political, governmental, regulatory
                                         or similar agency or body;

 

     

     

    

 

		1.1.2.	Reasonable
                                         Expenses (as defined below) expended or incurred by Indemnitee as a result of an investigation
                                         or any proceeding instituted against the Indemnitee by an authority that is authorized
                                         to conduct an investigation or proceeding, that (i) was concluded without filing an indictment
                                         against the Indemnitee and without imposing on the Indemnitee a financial obligation
                                         in lieu of a criminal proceeding, (ii) was concluded without filing an indictment against
                                         the Indemnitee but with imposing a financial obligation in lieu of a criminal proceeding
                                         in an offence that does not require proof of mens rea; or (iii) is in connection
                                         with a monetary sanction. In this section “conclusion of a proceeding without filing
                                         an indictment in a matter in which a criminal investigation has been instigated”
                                         and “financial liability in lieu of a criminal proceeding” shall mean as
                                         ascribed under the Companies Law;

 

		1.1.3.	Reasonable
                                         Expenses incurred by or charged to Indemnitee by a court (i) in a proceeding instituted
                                         against the Indemnitee by the Company or on its behalf or by another person; (ii) in
                                         a criminal charge from which he was acquitted; or (iii) in which he was convicted of
                                         an offence that does not require proof of mens rea; and

 

		1.1.4.	Any
                                         other event, occurrence or circumstances in respect of which the Company may lawfully
                                         indemnify an Office Holder of the Company.

 

For
the purpose of this Agreement, “Expenses” shall include, without limitation, reasonable attorneys’ fees
and all other costs, expenses, fees, penalties, fines, judgments and obligations paid or incurred by Indemnitee in connection
with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness
in or participate in any claim relating to any matter for which indemnification hereunder may be provided. Expenses shall be considered
paid or incurred by Indemnitee at such time as Indemnitee is required to pay or incur such cost or expenses, including upon receipt
of an invoice or payment demand. The Company shall pay the Expenses in accordance with the provisions of Section ‎1.3.

 

		1.2.	Notwithstanding
                                         anything herein to the contrary, the Company shall indemnify the Indemnitee under Section
                                         1.1 only with respect to events described in Exhibit A hereto, with respect
                                         to which, the Board of Directors of the Company (the “Board”) determined
                                         that, in light of the proposed operations of the Company, such events may occur. The
                                         maximum amount of indemnification payable by the Company under Section ‎1.1.1 of
                                         this Agreement for each event described in Exhibit A shall be as set forth in Exhibit
                                         A (the “Limit Amount”). The Limit Amount payable by the Company for
                                         each event described in Exhibit A is deemed by the Company to be reasonable in light
                                         of the circumstances. The indemnification provided under Section 1.1 herein shall not
                                         be subject to the limitations imposed by this Section ‎1.2 and Exhibit A if
                                         and to the extent such limits are no longer required by the Companies Law.

 

    	 	- 2 -	 

     

    

 

		1.3.	If
                                         so requested by Indemnitee in writing (which written instrument shall set forth in reasonable
                                         detail the facts of such request in connection with which such indemnification is sought
                                         and which is accompanied by reasonable written evidence (such as invoices or receipts
                                         which Indemnitee has already paid or which Indemnitee is required to pay)), and subject
                                         to the Company’s repayment and reimbursements rights set forth in Sections ‎3
                                         and ‎5 below, the Company shall pay amounts to cover Indemnitee’s Expenses
                                         with respect to which Indemnitee is entitled to be indemnified under Section ‎1.1
                                         above, as and when incurred. The payments of such amounts shall be made by the Company
                                         as soon as practicable, but in any event no later than thirty (30) days after written
                                         demand by such Indemnitee therefor to the Company, and any such payment shall be deemed
                                         to constitute indemnification hereunder. In the event that any indemnification payment
                                         hereunder is taxable to Indemnitee, the Company will then gross up any such amount paid
                                         as indemnification hereunder to cover any such tax payments which may apply. As part
                                         of the aforementioned undertaking, the Company will make available to Indemnitee any
                                         security or guarantee that Indemnitee may be required to post in accordance with an interim
                                         decision given by a court, governmental or administrative body including for the purpose
                                         of substituting liens imposed on Indemnitee’s assets. In the event that Indemnitee
                                         makes a written request for payment of an amount of indemnification hereunder or payment
                                         of Indemnitee’s incurred but not yet paid Expenses, which are indemnifiable as
                                         provided herein and the Company fails to determine Indemnitee’s right to indemnification
                                         hereunder or fails to make such payment or advancement, Indemnitee may petition any court
                                         which has jurisdiction to enforce the Company’s obligations hereunder. The Company agrees
                                         to reimburse Indemnitee in full for any reasonable expenses incurred by Indemnitee in
                                         connection with investigating, preparing for, litigating, defending or settling any action
                                         brought by Indemnitee under the immediately preceding sentence, except where such action
                                         or any claim or counterclaim in connection therewith is resolved in favor of the Company.

 

		1.4.	The
                                         Company’s obligation to indemnify Indemnitee and pay Indemnitee’s incurred
                                         but not yet paid Expenses, which are indemnifiable in accordance with this Agreement,
                                         shall be for such period as Indemnitee shall be subject to any actual, possible or threatened
                                         claim, action, suit, demand or proceeding or any inquiry or investigation, whether civil,
                                         criminal or investigative, arising out of the Indemnitee’s service in the Corporate
                                         Capacity as described in Section ‎1.1 above, whether or not Indemnitee is still serving
                                         in such position (the “Indemnification Period”).

 

		1.5.	The
                                         Company undertakes that, subject to the mandatory limitations under applicable law, as
                                         long as it may be obligated to provide indemnification or pay Indemnitee’s incurred
                                         but not yet paid Expenses which are indemnifiable under this Agreement, the Company will
                                         purchase and maintain in effect directors and officers liability insurance, which will
                                         include coverage for the benefit of the Indemnitee, providing coverage in amounts as
                                         reasonably determined by the Board including in the form of a tail insurance or similar
                                         insurance.

 

    	 	- 3 -	 

     

    

 

		1.6.	The
                                         Company undertakes to give prompt written notice of the commencement of any claim hereunder
                                         to the insurers in accordance with the procedures set forth in each of the policies.
                                         The Company shall thereafter diligently take all actions reasonably necessary under the
                                         circumstances to cause such insurers to pay, on behalf of Indemnitee, all amounts payable
                                         as a result of such action, suit, proceeding, inquiry or investigation in accordance
                                         with the terms of such policies. The above shall not derogate from Company’s authority
                                         to freely negotiate or reach any compromise with the insurer which is reasonable at the
                                         Company’s sole discretion, and provided that the Company shall act in good faith
                                         and in a diligent manner.

 

	2.	SPECIFIC
                                         LIMITATIONS ON INDEMNIFICATION.

 

Notwithstanding
anything to the contrary in this Agreement, the Company shall not indemnify the Indemnitee or pay Indemnitee’s incurred
but not yet paid Expenses with respect to:

 

		(i)	any
                                         act, event or circumstance with respect to which it is prohibited to do so under the
                                         Companies Law or any applicable law, as may be in effect from time to time; or

 

		(ii)	proceedings
                                         or claims initiated or brought voluntarily by Indemnitee against the Company, other than
                                         by way of defense or by way of third party notice to the Company in connection with claims
                                         brought against Indemnitee, except in specific cases in which the Board has approved
                                         the initiation or bringing of such suit, which approval shall not be unreasonably withheld.

 

	3.	REPAYMENT
                                         OF EXPENSES.

 

In
the event that the Company provides or is required to provide indemnification with respect to Expenses hereunder and at any time
thereafter, the Company determines, based on advice from its legal counsel, that the Indemnitee was not entitled to such payments
under applicable law, the amounts so indemnified by the Company will be promptly repaid by Indemnitee for all such amounts theretofore
paid, unless the Indemnitee disputes the Company’s determination, in which case the Indemnitee’s obligation to repay
to the Company shall be postponed until such dispute is finally resolved.

 

	4.	SUBROGATION.

 

In
the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents reasonably required and shall do everything that may be reasonably
necessary to secure such rights, including the execution of such documents reasonably necessary to enable the Company to effectively
bring suit to enforce such rights. For the avoidance of doubt, the provisions of this Section 4 shall not derogate from any right
the Company may have under any insurance policy providing coverage to Indemnitee and/or the Company upon the occurrence of an
Indemnifiable Event.

 

    	 	- 4 -	 

     

    

 

	5.	REIMBURSEMENT.

 

The
Company shall not be liable under this Agreement to make any payment in connection with any Indemnifiable Event to the extent
Indemnitee has otherwise actually received payment under any insurance policy of the Company or otherwise (without any obligation
of Indemnitee to repay any such amount) of the amounts otherwise indemnifiable hereunder, other than for amounts which are in
excess of the amounts actually paid to the Indemnitee pursuant to any such insurance policy or otherwise. Any amounts paid to
Indemnitee under such insurance policy or otherwise after the Company has indemnified Indemnitee for such liability or Expense
shall be repaid to the Company promptly upon receipt by Indemnitee.

 

	6.	EFFECTIVENESS.

 

The
Company represents and warrants that this Agreement was duly adopted and approved by the Company, and shall be in full force and
effect immediately upon its execution.

 

	7.	NOTIFICATION
                                         AND DEFENSE OF CLAIM.

 

Indemnitee
shall notify the Company in writing of the commencement of any action, suit or proceeding, and of the receipt of any notice or
threat that any such legal proceeding has been or shall or may be initiated against Indemnitee (including any proceedings by or
against the Company and any subsidiary thereof), promptly upon Indemnitee first becoming so aware; but the omission so to notify
the Company will not relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and to
the extent that such failure to provide notice adversely prejudices the Company’s ability to defend such action. Notice
to the Company shall be directed to the Chief Executive Officer or Chief Financial Officer of the Company at the address shown
in the preamble to this Agreement (or such other address as the Company shall designate in writing to Indemnitee). With respect
to any such action, suit or proceeding as to which Indemnitee notifies the Company of the commencement thereof and without derogating
from Sections ‎1.1 and ‎2 above:

 

		7.1.	The
                                         Company will be entitled to participate therein at its own expense.

 

		7.2.	Except
                                         as otherwise provided below, the Company, alone or jointly with any other indemnifying
                                         party similarly notified, will be entitled to assume the defense thereof, with counsel
                                         selected by the Company. The Company shall notify Indemnitee of any such decision to
                                         assume defense within ten (10) calendar days of receipt of notice of any such proceeding.
                                         Indemnitee shall have the right to employ his or her own counsel in such action, suit
                                         or proceeding, but the fees and expenses of such counsel incurred after notice from the
                                         Company of its assumption of the defense thereof shall be at the expense of Indemnitee,
                                         unless: (i) the employment of counsel by Indemnitee has been authorized in writing
                                         by the Company; (ii) Indemnitee shall have, in good faith, reasonably concluded based
                                         on a written opinion of an independent legal counsel that there may be a conflict of
                                         interest under the law and rules of attorney professional conduct applicable to such
                                         claim between the Company and Indemnitee in the conduct of the defense of such action;
                                         or (iii) the Company has not in fact employed counsel to assume the defense of such
                                         action, in which cases the reasonable fees and expenses of counsel shall be at the expense
                                         of the Company. The Company shall not be entitled to assume the defense of any action,
                                         suit or proceeding brought by or on behalf of the Company or as to which Indemnitee shall
                                         have reached the conclusion specified in (ii) above. Indemnitee’s attorney shall be fully
                                         updated, and will fully update the Company, on the defense procedure, and Indemnitee,
                                         its attorney, the Company and the attorney conducting the legal defense on behalf of
                                         the Company shall cooperate with each other, including regularly consulting with each
                                         other on the measures taken in the course of the defense.

 

    	 	- 5 -	 

     

    

 

		7.3.	The
                                         Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts
                                         or expenses paid in connection with a settlement of any action, claim or otherwise, effected
                                         without the Company’s prior written consent.

 

		7.4.	The
                                         Company shall have the right, but not the obligation, to conduct the defense as it sees
                                         fit in its sole discretion (provided that the Company shall conduct the defense in good
                                         faith and in a diligent manner), including the right to settle or compromise any claim
                                         or to consent to the entry of any judgment against Indemnitee without the consent of
                                         the Indemnitee, provided that, the amount of such settlement, compromise or judgment
                                         does not exceed the Limit Amount (if applicable) and is fully indemnifiable pursuant
                                         to this Agreement (subject to Section ‎1.2 of this Agreement) and/or applicable law,
                                         and any such settlement, compromise or judgment does not impose any penalty or limitation
                                         on Indemnitee without the Indemnitee’s prior written consent. In the case of civil
                                         proceedings the Indemnitee’s consent shall not be required if the settlement includes
                                         a complete release of Indemnitee, does not contain any admission of wrong-doing by Indemnitee
                                         and does not impose any penalty or limitation on Indemnitee. In no event shall the Company
                                         settle any criminal proceeding without the Indemnitee’s prior consent. In the case
                                         of criminal proceedings the Company and/or its legal counsel will not have the right
                                         to plead guilty or agree to a plea-bargain in the Indemnitee’s name without the
                                         Indemnitee’s prior written consent. Neither the Company nor Indemnitee will unreasonably
                                         withhold or delay their consent to any proposed settlement.

 

		7.5.	Indemnitee
                                         shall fully cooperate with the Company and shall give the Company all information and
                                         access to documents, files and to his advisors and representatives as shall be within
                                         Indemnitee’s power, in every reasonable way as may be required by the Company with
                                         respect to any claim which is the subject matter of this Agreement and in the defense
                                         of other claims asserted against the Company (other than claims asserted by Indemnitee),
                                         provided that the Company shall cover all reasonable expenses, costs and fees incidental
                                         thereto such that the Indemnitee will not be required to pay such expenses, costs and
                                         fees.

 

	8.	EXCULPATION.

 

Subject
to the provisions of the Companies Law, the Company hereby releases, in advance, the Office Holder from liability to the Company
for any damage that arises from the breach of the Office Holder’s duty of care to the Company (within the meaning of such
terms under Sections 252 and 253 of the Companies Law), other than breach of the duty of care towards the Company in a distribution
(as such term is defined in the Companies Law).

 

    	 	- 6 -	 

     

    

 

	9.	NON-EXCLUSIVITY.

 

The
rights of the Indemnitee hereunder shall not be deemed exclusive of any other rights Indemnitee may have under the Company’s
Articles of Association, applicable law or otherwise, and to the extent that during the Indemnification Period the indemnification
rights of the then serving Office Holders are more favorable to such directors or officers than the indemnification rights provided
under this Agreement to Indemnitee, Indemnitee shall be entitled to the full benefits of such more favorable indemnification rights
to the extent permitted by law. Any amendment to the Companies Law, the Israeli Securities Law 5728-1968 or other applicable law
adversely affecting the right of the Indemnitee to be indemnified pursuant hereto shall be prospective in effect, and shall not
affect the Company’s obligation or ability to indemnify the Indemnitee for any act or omission occurring prior to such amendment,
unless otherwise provided by applicable law.

 

	10.	PARTIAL
                                         INDEMNIFICATION.

 

If
Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Expenses
actually or reasonably incurred by Indemnitee in connection with any proceedings, but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled under any
provision of this Agreement. Subject to the provisions of Section ‎5 above, any amount received by Indemnitee (under any insurance
policy of the Company or otherwise) shall not reduce the Limit Amount hereunder and shall not derogate from the Company’s
obligation to indemnify the Indemnitee in accordance with the provisions of this Agreement up to the Limit Amount, as set forth
in Section ‎1.2 above.

 

	11.	BINDING
                                         EFFECT.

 

This
Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors
and permitted assigns. In the event of a merger or consolidation of the Company or a transfer or disposition of all or substantially
all of the business or assets of the Company, the Indemnitee shall be entitled to the same indemnification and insurance provisions
as the most favorable indemnification and insurance provisions afforded to the then-serving Office Holders of the Company. In
the event that in connection with such transaction the Company purchases a directors’ and officers’ “tail”
or “run-off” policy for the benefit of its then serving Office Holders, then such policy shall cover Indemnitee and
such coverage shall be deemed to be in satisfaction of the insurance requirements under this Agreement. This Agreement shall continue
in effect during the Indemnification Period regardless of whether Indemnitee continues to serve in a Corporate Capacity.

 

	12.	SEVERABILITY.

 

The
provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect
the validity or enforceability of the other provisions hereof. If any provision of this Agreement, or the application thereof
or any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order
to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b)
the remainder of this Agreement and the application of such provision or circumstances shall not be affected by such invalidity
or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability of such provision, or
the application thereof, in any other jurisdiction.

 

    	 	- 7 -	 

     

    

 

	13.	NOTICE.

 

All
notices and other communications pursuant to this Agreement shall be in writing and shall be deemed provided if delivered personally,
telecopied, sent by electronic facsimile, email, reputable overnight courier or mailed by registered or certified mail (return
receipt requested), postage prepaid, to the parties at the addresses shown in the preamble to this Agreement, or to such other
address as the party to whom notice is to be given may have furnished to the other party hereto in writing in accordance herewith.
Any such notice or communication shall be deemed to have been delivered and received (i) in the case of personal delivery, on
the date of such delivery, (ii) in the case of telecopier or an electronic facsimile or email, one business day after the date
of transmission if confirmation of receipt is received, (iii) in the case of a reputable overnight courier, three business days
after deposit with such reputable overnight courier service, and (iv) in the case of mailing, on the seventh business day following
that on which the mail containing such communication is posted.

 

	14.	GOVERNING
                                         LAW; JURISDICTION.

 

This
Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect
to the conflicts of law provisions of those laws. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction
and venue of the courts of Tel Aviv, Israel for all purposes in connection with any action or proceeding which arises out of or
relates to this Agreement.

 

	15.	ENTIRE
                                         AGREEMENT AND TERMINATION.

 

This
Agreement represents the entire agreement between the parties and supersedes any other agreements, contracts or understandings
between the parties, whether written or oral, with respect to the subject matter of this Agreement.

 

	16.	NO
                                         MODIFICATION AND NO WAIVER.

 

No
supplement, modification or amendment, termination or cancellation of this Agreement shall be binding unless executed in writing
by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver
of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. Any waiver shall
be in writing.

 

	17.	ASSIGNMENTS;
                                         NO THIRD PARTY RIGHTS

 

Neither
party hereto may assign any of its rights or obligations hereunder except with the express prior written consent of the other
party, provided however, that the Company will be entitled to assign this Agreement without the consent of the Indemnitee
upon consummation by the Company of a merger, reorganization of the Company with or into, or an acquisition or sale of all or
substantially all of its shares or assets to a third party (the “Acquiring Party”), provided that in such case
the Company shall promptly notify the Indemnitee of the identity of such assignee and that the Acquiring Party shall be bound
by the terms and conditions of this Agreement. . Nothing herein shall be deemed to create or imply an obligation for the benefit
of a third party. Without limitation of the foregoing, nothing herein shall be deemed to create any right of any insurer that
provides directors’ and officers’ liability insurance, to claim, on behalf of Indemnitee, any rights hereunder.

 

	18.	COUNTERPARTS

 

This
Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the
parties actually executing such counterpart, and all of which together shall constitute one and the same instrument; it being
understood that parties need not sign the same counterpart. The exchange of an executed Agreement (in counterparts or otherwise)
by facsimile or by electronic delivery in PDF format shall be sufficient to bind the parties to the terms and conditions of this
Agreement, as an original.

 

	19.	CORPORATE
                                         APPROVAL

 

This
Agreement is being executed pursuant to the resolutions adopted by the Board on July , 2016, and by the shareholders of the Company
on July , 2016. At the time of approval, the Board determined, based on the then current activity of the Company, that the Limit
Amount stated in Exhibit A attached hereto was reasonable and that the events listed in Exhibit A
were reasonably anticipated.

 

[Signature
Page to Follow]

 

    	 	- 8 -	 

     

    

 

IN
WITNESS WHEREOF, the parties, each acting under due and proper authority, have executed this Agreement as of the date first
mentioned above, in one or more counterparts.

	 	COMPANY
	 	 
	 	Railvision
Ltd.

	 	By:	
	 	Name and title:	 

 

	 	INDEMNITEE
	 	 
	 	 	

	 	Signature:	 

 

    	 	- 9 -	 

     

    

 

EXHIBIT
A*

 

	 	 	TYPE OF EVENT	 	LIMIT AMOUNT	 
	1.	 	Claims in connection with employment relationships with employees of the Company, and in connection with business relations between the Company and its employees, independent contractors, customers, suppliers and various service providers.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	2.	 	Negotiations, execution, delivery and performance of agreements of any kind or nature, anti-competitive acts, acts of commercial wrongdoing, approval of corporate actions including the approval of the acts of the Company’s management, their guidance and their supervision, actions concerning the approval of transactions with Office Holders or shareholders, including controlling persons and claims of failure to exercise business judgment and a reasonable level of proficiency, expertise and care with respect to the Company’s business.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	3.	 	Violation, infringement and other misuse of copyrights, patents, designs, trade secrets and any other intellectual property rights, breach of confidentiality obligations, acts in regard of invasion of privacy including with respect to databases, acts in connection with slander and defamation, and claims in connection with publishing or providing any information, including any filings with any governmental authorities, whether or not required under any applicable laws.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	4.	 	Violations of securities laws of any jurisdiction, including without limitation, fraudulent disclosure claims, failure to comply with any securities authority or any stock exchange disclosure or other rules and any other claims relating to relationships with investors, debt holders, shareholders and the investment community; claims relating to or arising out of financing arrangements, any breach of financial covenants or other obligations towards lenders or debt holders of the Company, class actions, violations of laws requiring the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction; actions taken in connection with the issuance of any type of securities of Company, including, without limitation, the grant of options to purchase any of the same.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	5.	 	Liabilities arising in connection with any products or services developed, distributed, sold, provided, licensed or marketed by the Company, and any actions in connection with the distribution, sale, license or use of such products.	 	$	1,000,000	 

 

    	 	- 10 -	 

     

    

 

	6.	 	The offering of securities by the Company to the public and/or to private investors or the offer by the Company to purchase securities from the public and/or from private investors or other holders pursuant to a prospectus, agreements, notices, reports, tenders and/or other proceedings.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	7.	 	Events in connection with change in ownership or in the structure of the Company, its reorganization, dissolution, or any decision concerning any of the foregoing, including but not limited to, merger, sale or acquisition of assets, division, change in capital.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	8.	 	Any claim or demand made in connection with any transaction not in the ordinary course of business of the Company, including the sale, lease or purchase of any assets or business.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	9.	 	Any claim or demand made by any third party suffering any personal injury and/or bodily injury or damage to business or personal property or any other type of damage through any act or omission attributed to the Company, or its employees, agents or other persons acting or allegedly acting on its behalf.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	10.	 	Any claim or demand made directly or indirectly in connection with complete or partial failure, by the Company or its directors, officers and employees, to pay, report, keep applicable records or otherwise, of any foreign, federal, state, county, local, municipal or city taxes or other compulsory payments of any nature whatsoever, including, without limitation, income, sales, use, transfer, excise, value added, registration, severance, stamp, occupation, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll or employee withholding or other withholding, including any interest, penalty or addition thereto, whether disputed or not.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	11.	 	Any administrative, regulatory, judicial or civil actions orders,decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person alleging potential responsibility or liability (including potential responsibility or liability for costs of enforcement investigation, cleanup, governmental response, removal or remediation, for natural resources damages, property damage, personal injuries or penalties or for contribution,  indemnification, cost recovery, compensation or injunctive relief) arising out of, based on or related to (a) the presence of, release, spill, emission, leaning, dumping, pouring, deposit, disposal, discharge, leaching or migration into the environment (each a “Release”) or threatened Release of, or exposure to, any hazardous, toxic, explosive or radioactive substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing material, polychlorinated biphenyls (“PCBs”) or PCB-containing materials or equipment, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any environmental law, at any location, whether or not owned, operated, leased or managed by the Company or any of its subsidiaries, or (b) circumstances forming the basis of any violation of any environmental law or environmental permit, license, registration or other authorization required under applicable environmental law.	 	$	1,000,000	 

 

    	 	- 11 -	 

     

    

 

	12.	 	Any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental entity applicable to the Company or any of its businesses, assets or operations, or the terms and conditions of any operating certificate or licensing agreement.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	13.	 	Participation and/or non-participation at the Company’s Board meetings, bona fide expression of opinion and/or voting and/or abstention from voting at the Company’s Board meetings.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	14.	 	Review and approval of the Company’s financial statements, including any action, consent or approval related to or arising from the foregoing, including, without limitations, execution of certificates for the benefit of third parties related to the financial statements.	 	$	1,000,000	 
	 	 	 	 	 	 	 
	15.	 	All actions, consents and approvals relating to a distribution of dividends, in cash or otherwise.	 	$	1,000,000	 

 

	*	Any
                                         reference in this Exhibit A to the Company shall include the Company and any entity in
                                         which the Indemnitee serves in a Corporate Capacity.

 

 

-
12 -Exhibit 10.4

RAIL VISION LTD.

 

SHARE OPTION PLAN

 

		1.	Purpose: The purpose of this Share Option Plan is to provide an additional
incentive to Employees, officers, Directors, Consultants and certain other Service Providers of the Company (as defined below)
and any Affiliate of the Company (as defined below) to further the growth, development and financial success of the Company by
providing them with opportunities to purchase Shares (as defined below) of the Company pursuant to this Share Option Plan and to
promote the success of the Company's business.

 

		2.	Definitions: For the purposes of this Share Option Plan, the following
terms shall have the meaning ascribed thereto below:

 

		a)	“Additional Rights” means any distribution of rights,
including an issuance of bonus shares and stock dividends (but excluding cash dividends), in connection with Section 102 Trustee
Options (as defined below) and/or the Shares issued upon exercise of such Options.

 

		b)	“Affiliate(s)” means a present or future company that
either (i) controls the Company or is controlled by the Company; or (ii) is controlled by the same person or entity that controls
the Company, provided that for the purpose of grants made under Section 102, such company is an "employing company" within
the meaning of Section 102(a) of the Tax Ordinance (as defined below).

 

		c)	“Board” means the Board of Directors of the Company.

 

		d)	“Cause” means any of the following: (i) a serious breach
of trust, including but not limited to, theft, embezzlement, self-dealing, and/or breach of fiduciary duties; (ii) the Optionee
(as defined below) has committed any flagrant criminal offense; (iii) a material breach by the Optionee of any agreement between
the Optionee and the Company and/or any Affiliate, which has not been remedied within thirty (30) days after the Optionee has received
a written demand for performance from the Company; or (iv) any other circumstance justifying termination or dismissal without severance
payment according to Israeli law.

 

		e)	“Committee” means a committee of Directors (as defined
below) to which the Board may delegate power to act under or pursuant to the provisions of the Plan. In the absence of any such
delegation, the Committee will consist of the entire Board.

 

		f)	“Company” means Rail Vision Ltd., a company incorporated
under the laws of the State of Israel.

 

		g)	“Companies Law” means the Israeli Companies Law 5759-1999,
as amended.

 

		h)	“Consultant” means any person or entity that is engaged
by the Company or any Affiliate of the Company to render consulting or advisory services to such entity.

 

		i)	“Controlling Shareholder" has the meaning ascribed to
it in Section 32(i) of the Tax Ordinance.

 

		j)	“Corporate Transaction” means the consummation of any
of the following transactions or series of related transactions to which the Company is a party:

 

		i)	A merger, acquisition, reorganization or consolidation in which the Company
is not the surviving entity (or survives only as a subsidiary of another entity whose shareowners
did not own all or substantially all of the shares in substantially the same proportions as immediately prior to such transaction),
except for a transaction the principal purpose of which is to change the jurisdiction in which the Company is incorporated;

 

		ii)	The sale, transfer, exchange or other disposition of all or substantially
all of the shares or assets of the Company (including, intellectual property rights which, in the aggregate, constitute substantially
all of the Company's material assets), in a transaction not covered by the exception to clause (i) above.

 

     

     

    

 

		k)	“Director” means a member of the Board of Directors of
the Company.

 

		l)	“Disability” means a complete and permanent inability,
due to illness or injury, to perform the duties of the Optionee's engagement at such time when the disability commenced, as determined
by the Committee based on medical evidence acceptable to it.

 

		m)	“Employee” means any person, including officers and Directors,
employed by the Company or any Affiliate of the Company. A person employed by the Company or any Affiliate of the Company shall
not cease to be an Employee for the purposes of the Plan in the case of (i) any leave of absence approved by the Company, or (ii)
transfer between locations of the Company, or (iii) transfer of employment between the Company and any Affiliate or any successor
thereto. With regard to Section 102 Trustee Options and Section 102 Non-Trustee Options (as defined below), “Employee”
includes Directors and office holders ("Nosei Misra" as such term is defined in the Israeli Companies Law), and
excludes any person who is a Controlling Shareholder prior to and/or after the issuance of the Shares issued upon exercise of the
Options.

 

		n)	“Exercise Price” means the price per Share determined
by the Committee in accordance with Section 10 below, which is to be paid to the Company in order to exercise an Option and purchase
the Share(s) covered thereby.

 

		o)	“Expiration Date” of an Option means the earlier of:
(i) the lapse of ten (10) years from the date such Option was granted; or (ii) the expiration date set forth in the Option Agreement.

 

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

 

		i)	If the Shares are admitted to trading on any established stock exchange
or a national market system, including without limitation the Nasdaq National Market or the Nasdaq Small Cap Market of the Nasdaq
Stock Market, the Fair Market Value shall be the closing sale price of a Share on the principal exchange on which Shares are then
trading (or as reported on any composite index which includes such principal exchange), on the trading day immediately preceding
such date, or if Shares were not traded on such date, then on the next preceding date of which a trade occurred, as reported in
The Wall Street Journal or such other source as the Committee deems reliable;

 

		ii)	If the Shares are not traded on an exchange, but are admitted to quotation
on the Nasdaq or other comparable quotation system, the Fair Market Value shall be the mean between closing representative bid
and asked prices for the Shares on the trading day immediately preceding such date or, if no bid and ask prices were reported on
such date, then on the last date preceding such date on which both bid and ask prices were reported, all as reported by Nasdaq
or such other comparable quotation system; or

 

		iii)	If the Shares are not publicly traded on an exchange and not quoted on Nasdaq
or a comparable quotation system, the Fair Market Value shall be determined in good faith by the Committee.

 

		iv)	Without derogating from the foregoing and solely for the purpose of determining
the tax liability, in the case of Capital Gain Option Through a Trustee (as defined below), the Fair Market Value of a Share at
grant shall be determined in accordance with the provisions of Section 102(b)(3) of the Tax Ordinance as further detailed in Section
16(b) below.

 

		q)	“IPO" means an initial underwritten public offering of
the Shares of the Company pursuant to an effective registration statement under the United States Securities Act of 1933, as amended
or the Israeli Securities Law, 5728-1968, as amended or equivalent law of another jurisdiction.

 

    - 2 -

     

    

 

		r)	“Lock-up Period” means the period during which the Section
102 Trustee Options granted to an Optionee or, upon exercise thereof the underlying Shares as well as any Additional Rights distributed
in connection therewith are to be held by the Trustee (as defined below) on behalf of the Optionee, in accordance with Section
102 (as defined below) and pursuant to the tax route which the Company elects.

 

		s)	"Notice of Exercise” has the meaning ascribed to it in
Section 11 below.

 

		t)	“Option(s)” means a right to purchase Shares granted
under Section 8 below in accordance with the provisions of the Option Agreement, and subject to the terms specified in the Plan,
whether Section 102 Trustee Option, Section 102 Non-Trustee Option, Section 3(i) Option or option issued under other tax regimes.

 

		u)	“Optionee(s)” means the holder of an outstanding Option
granted under the Plan.

 

		v)	“Option Agreement” means a written or electronic agreement
between the Company and the Optionee evidencing the terms and conditions of an individual grant of Option, as further specified
in Section 8 below. The Option Agreement is subject to the terms and conditions of the Plan.

 

		w)	“Plan” means this Share Option Plan, as amended from
time to time.

 

		x)	“Proxy Holder” means the Chairman of the Board, as shall
be in office from time to time or any other person designated by the Board to act as proxy holder.

 

		y)	"Section 3(i) ” means that certain Section 3(i) of the
Tax Ordinance, and any regulations, rules, orders or procedures promulgated thereunder, all as amended.

 

		z)	"Section 3(i) Option” means an Option granted pursuant
to Section 3(i).

 

		aa)	"Section 102” means that certain Section 102 of the Tax
Ordinance, and any regulations, rules, orders or procedures promulgated thereunder, including the Income Tax Rules (Tax Relief
for Issuance of Shares to Employees), 2003, all as amended.

 

		bb)	“Section 102 Trustee Option” means an Option that by
its terms qualifies and is intended to qualify under the provisions of Section 102(b) of the Tax Ordinance (including the Section
102(b) Route Election (as defined below)) , as either:

 

		i)	“Ordinary Income Option Through a Trustee” for the special
tax treatment under Section 102(b)(1) and the “Ordinary Income Route”, or

 

		ii)	“Capital Gain Option Through a Trustee” for the special
tax treatment under Section 102(b)(2) and the “Capital Route”.

 

		cc)	“Section 102(b) Route Election” means the right of the
Company to choose either the “Capital Route” (as set under Section 102(b)(2)), or the “Ordinary Income Route”
(as set under Section 102(b)(1)), but subject to the provisions of Section 102(g) of the Tax Ordinance, as further specified in
Section 6 below.

 

		dd)	“Section 102 Non-Trustee Option” means an Option that
by its terms does not qualify or is not intended to qualify as a Section 102 Trustee Option and is granted not through a trustee
under the terms of Section 102(c) of the Tax Ordinance.

 

		ee)	“Service Provider” means an Employee, officer, Director
or Consultant.

 

		ff)	“Share(s)” means an Ordinary Share, nominal value NIS
0.01 of the Company, as adjusted in accordance with Section 13 of the Plan.

 

		gg)	“Tax Ordinance” means the Israeli Income Tax Ordinance
(New Version), 1961, as amended.

 

		hh)	“Trust Agreement” means a written agreement between the
Company and the Trustee, which sets forth the terms and conditions of the trust and is in accordance with the provisions of Section
102(b).

 

		ii)	“Trustee” means a person or an entity, appointed by the
Company and approved in accordance with the provisions of Section 102, to hold in trust on behalf of the Optionees the granted
Options, or upon exercise thereof, the Shares, as well as any Additional Rights granted in connection therewith, in accordance
with the provisions of Section 102.

 

    - 3 -

     

    

 

		3.	Interpretation: Unless the context otherwise indicates, words expressed
in the singular shall include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for convenience
only and shall be deemed to mean and include the neuter, masculine or feminine gender, as appropriate.

 

		4.	Administration:

 

		a)	The Committee shall have the power to administer the Plan. Notwithstanding
the above, the Board shall automatically have a residual authority if no Committee shall be constituted or if such Committee shall
cease to operate for any reason whatsoever.

 

		b)	Subject to the terms and conditions of this Plan, and subject to the approval
of any relevant authorities and to applicable laws, the Committee shall have full power and authority, at all times, to: (i) select
the Service Providers to whom Options may from time to time be granted hereunder, and to grant the Options to the said Service
Providers; (ii) determine the terms and provisions of the Option Agreements (which need not be identical) including, but not limited
to, the type of Option to be granted, the number of Shares to be covered by an Option, the Exercise Price, the times or conditions
upon which and the extent to which an Option shall be vested and may be exercised and the nature and duration of any restrictions
applicable to the Options or the underlying Shares, including as to transferability or exercise of the same; (iii) accelerate the
right of an Optionee to exercise, in whole or in part, any Option, or extend such right; (iv) approve forms of Option Agreement
for use under the Plan; (v) make a Section 102(b) Route Election (subject to the limitations set under Section 102(g)); (vi) interpret
and construe the provisions of the Plan and the Option Agreements; (vii) determine the Fair Market Value of the Shares; (viii)
adopt sub-plans, Plan addenda and appendices to the Plan as the Committee deems desirable, to accommodate foreign laws, regulations
and practice. The provisions of such sub-plans, Plan addenda and appendices to the
Plan may take precedence over other provisions of the Plan, but unless otherwise superseded by the terms of such sub-plans,
Plan addenda and appendices to the Plan, the provisions of the Plan shall govern their operation; (ix) exercise such powers
and perform such acts as are deemed necessary or expedient to promote the best interests of the Company with respect to the Plan,
including but not limited to prescribe, amend and rescind any rules and regulations relating to the Plan (including rules and regulations
relating to sub-plans, Plan addenda and appendices to the Plan established for the
purpose of satisfying applicable foreign laws); and (x) take all other action and determine any other matter which is necessary
or desirable for, or incidental to, the administration of the Plan.

 

		c)	The interpretation and construction by the Committee of any provision of
the Plan (including sub-plans, Plan addenda and appendices to the Plan), the Option Agreement or of any Option thereunder shall
be final and conclusive, unless otherwise determined by the Board.

 

		5.	Reserved Shares:

 

		a)	The Company, during the term of this Plan, shall reserve and keep available
such number of Shares as shall be sufficient to satisfy the requirements of the Plan. The Shares subject to the Plan may be either
authorized but unissued Shares or reacquired Shares, subject to applicable laws.

 

		b)	Any Shares under the Plan, in respect of which the right hereunder of an
Optionee to purchase the same shall for any reason terminate, become cancelled, expire or otherwise cease to exist, shall again
be available for grant through Options under the Plan (unless the Plan has terminated). No fraction of Shares may be issued under
the Plan.

 

		c)	The Board may, at any time during the term of the Plan, increase the number
of Shares available for grant under the Plan. The approval of the Company’s shareholders of such increase shall be obtained
if so required under applicable laws and/or the Company’s incorporation documents and/or any shareholders agreement, as shall
be in effect from time to time.

 

    - 4 -

     

    

 

		6.	Section 102(b) Route Election: No Section 102 Trustee Options may
be granted under this Plan to any eligible Optionee, unless and until, the Company's election of the type of Section 102 Trustee
Options either as “Ordinary Income Option Through a Trustee” or as “Capital Gain Option Through a Trustee”
is appropriately filed with the Income Tax Authorities. The Section 102(b) Route Election shall obligate the Company to grant only
the type of Section 102 Trustee Option it has elected, and shall apply to all Optionees who were granted Section 102 Trustee Options
during the period indicated herein, to the extent required under and in accordance with the provisions of Section 102(g) of the
Tax Ordinance and the applicable regulations. For avoidance of doubt, it is clarified that the Company does not obligate itself
to file a Section 102(b) Route Election, and in any case, such Section 102(b) Route Election shall be at the sole discretion of
the Company. It is further clarified that such Section 102(b) Route Election shall not prevent the Company from granting Section
102 Non-Trustee Options simultaneously.

 

		7.	Eligible Optionees:

 

		a)	Subject to the terms and conditions of the Plan and any restriction imposed
by applicable laws, Options may be granted to Service Providers, as selected by the Committee in its sole discretion, provided
however, that, (i) Section 102 Trustee Options and Section 102 Non-Trustee Options may be granted only to Israeli Employees
of the Company and any Affiliate thereof, and provided further that, such Affiliate corporation is an "employing company"
within the meaning of Section 102(a) of the Tax Ordinance; and (ii) Section 3(i) Options may be granted only to Israeli (a) Consultants;
and/or (b) employees, Directors and/or officers of the Company or any Affiliate who are Controlling Shareholders prior to and/or
after the issuance of the Shares underlying the Options.

 

		b)	Eligibility to participate in the Plan does not confer any right to be granted
with Options under the Plan. Participation in the Plan is voluntary. The grant of an Option to a Service Provider hereunder, shall
neither entitle such Service Provider to participate, nor disqualify him from participating, in any other grant of Options pursuant
to this Plan or any other share incentive or stock option plan of the Company or any Affiliate of the Company.

 

		8.	Issuance of Options:

 

		a)	Options may be granted at any time after the Plan shall become effective
as specified in Section 17 hereof, subject to obtaining all the necessary approvals (if any) from any regulatory body or governmental
agency having jurisdiction over the Company and/or any Affiliate and/or any Optionee. In the case of Section 102 Trustee Options,
Options may be granted only after the passage of thirty (30) days (or a shorter period as and if approved by the tax authorities)
following the delivery by the Company to the appropriate Israeli Income Tax Authorities of a request for approval of the Plan and
the Trustee according to Section 102. Notwithstanding the above, if within ninety (90) days of delivery of the abovementioned request,
the tax officer notifies the Company of its decision not to approve the Plan, the Options, which were intended to be granted as
a Section 102 Trustee Options, shall be deemed to be Section 102 Non-Trustee Options, unless otherwise was approved by the tax
officer. The date of grant of each Option shall be the date specified by the Committee at the time such Option is granted and subject
to the applicable laws and regulations.

 

		b)	An Option Agreement shall evidence each Option granted pursuant to the Plan.
The Option Agreement shall state, inter alia, the number of Shares covered thereby, the type of Option granted thereunder,
the dates and schedule when the Option may be exercised, the Exercise Price and such other terms and conditions as the Committee
in its discretion may prescribe, provided that they are consistent with this Plan and applicable laws.

 

    - 5 -

     

    

 

		9.	Trustee: In connection with the grant of any Section 102 Trustee
Options, the following shall apply:

 

		a)	Notwithstanding anything to the contrary contained in the Plan, Section
102 Trustee Options, which shall be granted under the Plan and any Shares issued upon exercise of such Options shall be issued
to the Trustee who shall hold the same in trust for the benefit of the Optionee at least for the Lock-up Period. Upon the conclusion
of the Lock-up Period and subject to any further period included in the Plan and/or in the Option Agreement, the Trustee may release
Section 102 Trustee Options or Shares issued upon exercise of such Options to Optionee only after the Optionee's full payment of
his tax liability in connection therewith due pursuant to the Tax Ordinance.

 

		b)	Notwithstanding the above, in the event an Optionee shall elect to release
the Section 102 Trustee Options and/or the Shares issued upon exercise of such Options prior to the conclusion of the Lock-up Period,
the sanctions under Section 102 shall apply to and shall be borne solely by the Optionee.

 

		c)	Any Additional Rights distributed to the Optionee on account of Section
102 Trustee Options shall be deposited with and/or issued to the Trustee for the benefit of the Optionee, and shall be held by
the Trustee for the applicable Lock-up Period in accordance with the provisions of Section 102 and the elected tax route.

 

		d)	The Company, any Affiliate of the Company (if applicable), the Trustee and
the Optionee shall comply with the Tax Ordinance, Section 102 and the provisions of the Trust Agreement.

 

		e)	Upon receipt of Section 102 Trustee Options, Optionee will sign the Option
Agreement, which shall be deemed as the Optionee’s undertaking to exempt the Trustee from any liability in respect of any
action or decision duly taken and bona fide executed in relation with the Plan and any Option, Share, Additional Right or
other rights received by the Optionee in connection therewith.

 

		f)	The Committee shall determine and approve the terms of engagement of the
Trustee, and shall be authorized to designate from time to time a new Trustee and replace either of them at its sole discretion,
and in the event of replacement of any existing Trustee, to instruct the transfer of all Options and Shares held by such Trustee
at such time to its successor.

 

		g)	For as long as the Trustee holds Shares in trust for the benefit of the
Optionee, the Trustee shall not use the voting rights vested in such Shares, and shall not exercise such rights in any way whatsoever.
In the event the right to vote such Shares is held by the Trustee pursuant to Section 102, then upon the exercise of any Section
102 Trustee Option by the Optionee, the Trustee shall execute an irrevocable voting proxy in such form as may be prescribed by
the Committee in accordance with the provisions of Section 11(f) of the Plan and the provisions of Section 102.

 

		10.	Option Exercise Price and Consideration:

 

		a)	The Exercise Price shall be determined by the Committee on the date of grant
of an Option, on an individual basis, subject to any guidelines as may be determined by the Board from time to time and any applicable
law; provided, however, that the Exercise Price shall be not less than the nominal value of the Shares underlying the Option.

 

		b)	The consideration to be paid for the Shares to be issued upon exercise of
an Option, including the method of payment, shall be determined by the Committee subject to applicable laws. Such consideration
may consist of, without limitation, (1) cash, or (2) check or wire transfer, or (3) at the discretion of the Committee,
consideration received by the Company under a broker-assisted sale and remittance program acceptable to the Committee, or (4) at
the discretion of the Committee, any combination of the foregoing methods of payment.

 

    - 6 -

     

    

 

		11.	Exercise of Options:

 

		a)	Options shall be exercisable pursuant to the terms under which they were
awarded and subject to the terms and conditions of this Plan and the Option Agreement; provided, however, that in no event shall
an Option be exercisable after its Expiration Date, as further specified in Section 11(b) below.

 

Unless the Committee provides
otherwise, vesting of Options granted hereunder shall be suspended during any unpaid leave of absence.

 

		b)	Anything herein to the contrary notwithstanding, if any Option, or any part
thereof, has not been exercised prior to its Expiration Date and the Shares covered thereby not paid for until such date, then
such Option, or such part thereof, and the right to acquire such Shares shall terminate, and all interests and rights of the Optionee
in and to the same shall expire.

 

		c)	Options may be exercised only to purchase whole Shares, and in no case may
a fraction of a Share be purchased. If any fractional Share would be deliverable upon exercise, including but not limited to, as
a result of adjustments as provided in Section 13 hereof, such fraction shall be rounded up one-half or less, or otherwise rounded
down, to the nearest whole number of Shares.

 

		d)	An Option, or any part thereof, shall be exercisable by the Optionee's signing
and returning to the Company at its principal office, on any business day, a "Notice of Exercise" in such form and substance
as may be prescribed by the Committee from time to time and in accordance with the requirements of applicable laws, which exercise
shall be effective upon receipt of such signed notice by the Company at its principal office. The Notice of Exercise shall specify
the number of Shares with respect to which the Option is being exercised and shall be accompanied by payment of the aggregate Exercise
Price due with respect to the Shares to be purchased. Such payment may consist of any consideration and method of payment authorized
by the Committee and permitted by the Option Agreement and the Plan. If required under applicable laws, the Notice of Exercise
shall also be accompanied by payment of the aggregate withholding taxes due with respect to the exercise of Options and/or purchased
Shares.

 

		e)	If applicable laws require the Company to take any action with respect to
the Shares specified in the Notice of Exercise before the issuance thereof, then the date of their issuance shall be extended for
the period necessary to take such action.

 

		f)	Prior to exercise, the Optionee shall have none of the rights and privileges
of a shareholder of the Company in respect to any Shares purchasable upon the exercise of any part of an Option. Until the Shares
are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company),
no right to receive dividends or any other rights as a shareholder shall exist with respect to the Shares, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised, subject
to the provisions of Section 15 hereof. No adjustment will be made for a dividend or other right, for which the record date precedes
the date of issuance of the Shares, except as provided in Section 13 hereof.

 

		g)	Except and to the extent otherwise expressly provided herein, the Shares
acquired under an Option shall be subject to the provisions of the Company's incorporation documents, as amended from time to time
and/or any other shareholders agreement in effect.

 

		h)	To the extent permitted by applicable law,
an Option Agreement may include a requirement that concurrently with the exercise of any Option and as a
condition precedent to such exercise and the issuance of any Shares in respect thereof, the Optionee shall sign and deliver to
the Company an irrevocable power of attorney and voting proxy in such form as may be prescribed by the Committee. By this
proxy, the Optionee’s right to vote any acquired Shares shall be assigned to
the Proxy Holder, who shall vote such Shares on any issue brought before the shareholders of the Company in accordance with the
majority vote of the shareholders of the Company (as voted by the shareholders without taking such acquired Shares in consideration).
Such power of attorney and voting proxy shall
expire and be of no further force and effect upon the consummation of an IPO.

 

    - 7 -

     

    

 

		12.	Termination of Relationship as a Service Provider:

 

		a)	Except as provided below, an Option, or any part thereof, may not be exercised
unless the Optionee is then a Service Provider of the Company or any Affiliate thereof, and unless the Optionee has remained continuously
a Service Provider since the date of grant of the Option, unless the Committee determines that a longer period is applicable or
such longer period is otherwise set forth in the Option Agreement.

 

		b)	Unless otherwise approved by the Committee or set forth in the Option Agreement,
if an Optionee ceases to be a Service Provider of the Company or any Affiliate thereof for any reason (including, but not limited
to retirement, but excluding termination by reasons of Cause, Optionee's Disability or death, for which events there are special
rules in Subsections (c) and (d) below), all Options granted to the Optionee, which are vested and exercisable at the time of such
termination, may be exercised within one (1) month following the date of such termination if the Company initiates such termination
or two (2) weeks following the date of such termination, is the Service Provider initiates such termination, but in no event later
than the Expiration Date of such Option, as set forth in the Option Agreement. If, after termination, the Option is not so exercised
within the time specified herein, the Option shall terminate, and the Shares covered by the unexercised portion of such Option
shall revert to the Plan. Unless the Committee or the Option Agreement provide otherwise, any Options which are not vested and
exercisable at the date of such termination, shall terminate, and the Shares covered by such unvested Option shall revert to the
Plan.

 

		c)	Unless otherwise approved by the Committee or set forth in the Option Agreement,
if an Optionee ceases to be a Service Provider of the Company or any Affiliate thereof as a result of Optionee’s Disability
or death, all Options granted to the Optionee, which are vested and exercisable at the time of such termination, may, unless earlier
terminated in accordance with the Option Agreement, be exercised within six (6) months following the Optionee’s termination,
but in no event later than the Expiration Date of such Option, as set forth in the Option Agreement. In the case of Optionee's
death, such Option may be exercised by the personal representative of the Optionee’s estate or by the person or persons to
whom the Option is transferred pursuant to the Optionee’s will or the laws of inheritance or by the Optionee’s designated
beneficiary or beneficiaries of that Option. If, after termination, the Option is not so exercised within the time specified herein,
the Option shall terminate, and the Shares covered by the unexercised portion of such Option shall revert to the Plan. Unless the
Committee or the Option Agreement provide otherwise, any Options which are not vested and exercisable at the date of such termination,
shall terminate and the Shares covered by such unvested Option shall revert to the Plan.

 

		d)	Notwithstanding the above, if an Optionee ceases to be a Service Provider
of the Company or any Affiliate thereof for Cause, all outstanding Options granted to such Optionee (whether vested or not) shall,
to the extent not theretofore exercised, expire immediately upon the earlier of: (i) the date of such termination; or (ii) the
time of delivery of the notice of termination for Cause, unless otherwise determined by the Committee. The Shares covered by such
expired Options shall revert to the Plan.

 

		e)	In addition and notwithstanding Subsections (b) through (d) above, if after
termination of relationship as a Service Provider, Optionee does not comply in full with any of non-compete, non solicitation,
confidentiality or any other requirement of any agreement between the Optionee and the Company (or any Affiliate thereof engaging
the Optionee), the Committee may, in its sole discretion, refuse to allow the exercise of the Options.

 

		f)	For the purpose of this Section 12, termination of relationship as a Service
Provider shall be deemed to be effective upon the date, which is designated by the Company (or any Affiliate thereof engaging the
Optionee) as the last day of the Optionee’s service with the Company or any Affiliate thereof.

 

		g)	For the purpose of this Section 12, a transfer of the Optionee from the
service of the Company to any Affiliate (and vise versa) or between Affiliates shall not be deemed a termination of relationship
as a Service Provider, unless otherwise determined by the Committee.

 

    - 8 -

     

    

 

		13.	Adjustments, Liquidation and Corporate Transaction: Upon the occurrence
of any of the following described events, an Optionee's right to purchase Shares under the Plan shall be adjusted as hereinafter
provided.

 

		a)	Changes in Capitalization. The number and type of Shares which have
been authorized for issuance under the Plan but as to which no Option have yet been granted or which have been returned to the
Plan upon cancellation or expiration of an Option, and the number and type of Shares covered by each outstanding Option, as well
as the Exercise Price per Share covered by each such outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number or type of issued Shares resulting from a stock split, reverse stock split, stock dividend, recapitalization,
combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company, in order to prevent diminution or enlargement of the benefits or potential benefits intended
to be made available under the Plan. The conversion of any convertible securities of the Company shall not be deemed to have been
“effected without receipt of consideration”. Such adjustment shall be made by the Committee, in its sole discretion.
The Company shall not be required to issue fractional Shares or other securities under the Plan as a result of such adjustment
and any fractional interest in a Share or other security that would otherwise be delivered upon the exercise of an Option will
be rounded, as detailed in Section 11(c) hereof.

 

		b)	Dissolution or Liquidation. In the event of dissolution or liquidation
of the Company, the Company shall have no obligation to notify the Optionees of such event and any Options that have not been previously
exercised will terminate immediately prior to such dissolution or liquidation. Notwithstanding the above, in the event of a voluntary
liquidation of the Company, which is not within the frame of a Corporate Transaction, the Committee shall notify each Optionee
as soon as practicable prior to the effective date of such proposed transaction, and any Options that have not been previously
exercised will terminate immediately prior to such proposed liquidation.

 

		c)	Corporate Transaction. In the event of a Corporate Transaction, each
outstanding Option shall, be treated as the Committee determines, including, without limitation, that each Option may (i) be assumed
or substituted for an equivalent option by the successor corporation or a parent or subsidiary of the successor corporation. In
the case of such assumption or substitution of Options, appropriate adjustments shall be made in the number and type of Shares
covered by each outstanding Option, as well as the Exercise Price per Share covered by each such outstanding Option, and all other
terms and conditions of the Options, such as the vesting dates, shall remain in force; or (ii) be terminated in exchange for a
cash payment (if any) equal to the excess of the Fair Market Value of the Shares subject to such Option (either to the extent then
exercisable or, at the discretion of the Committee, the Option being made fully exercisable for purposes of this Section 13(c))
over the Exercise Price thereof.

 

For the purposes of this
Sub-Section 13(c), the Option shall be considered assumed if, following the Corporate Transaction, the Option confers the right
to purchase or receive, for each Share covered by the Option immediately prior to the Corporate Transaction, the consideration,
if any, (whether stock, cash, or other securities or property) received in the Corporate Transaction by holders of Ordinary Shares
for each Ordinary Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding Ordinary Shares); provided, however, that if such
consideration received in the Corporate Transaction is not solely in securities of the successor corporation or its Parent or Subsidiary,
the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise
of the Option, for each Ordinary Share subject to the Option, to be solely in securities of the successor corporation or its Parent
or Subsidiary equal in fair market value to the per share consideration received by holders of Ordinary Shares in the Corporate
Transaction.

 

    - 9 -

     

    

 

Unless the Committee or
the Option Agreement provide otherwise, in the event that the Option is not assumed, substituted or exchanged during and/or immediately
following the Corporate Transaction, the Option shall terminate as of the date of the closing of the Corporate Transaction and
the Committee shall notify the Optionee in writing or electronically of such termination.

 

The Committee shall not
be required to treat all Options similarly in the transaction.

 

		14.	Limited Transferability and Restrictions on Sale of Options/Shares:

 

		a)	No Option may be sold, pledged, assigned, hypothecated or transferred other
than by will or by the laws of descent and distribution, and may be exercised during the lifetime of the Optionee, only by the
Optionee. The terms of the Plan and the Option Agreement shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee. Any attempted sale, transfer, assignment, pledge, hypothecation or other disposition of any Option
or of any rights granted thereunder contrary to the provisions of this Plan shall be null and void.

 

		b)	Without derogating from the provisions of Section 14(a) above, with regard
to Section 102 Trustee Option and the Shares issued upon exercise of such Options, as long as such Options and/or Shares are held
by the Trustee on behalf of the Optionee, all rights of the Optionee with respect thereto are personal and cannot be transferred,
assigned, pledged or mortgaged, other than by will or by the laws of descent and distribution.

 

		c)	Shares acquired upon exercise of an Option shall be subject to such restrictions
on transfer and/or sale as are generally applicable to Ordinary Shares of the Company, including but not limited to (i) restrictions
detailed in the Company's incorporation documents, as may be amended from time to time; and (ii) restrictions detailed in any shareholders
agreements (as applicable to other shareholders of Ordinary Shares of the Company), as amended from time to time, regardless of
whether or not the Optionee is a party to such agreements.

 

		d)	In the event the Shares shall be registered for trading in any public market,
the Committee may impose certain limitations on the Optionee’s right to sell the Shares (including a lock-up period) as may
be requested by the Company’s underwriters or as the Committee may, in its absolute discretion, determine to be necessary
or advisable, and Optionee shall unconditionally agree and accept any such limitations.

 

		15.	Conditions Upon Issuance of Shares:

 

		a)	Shares shall not be issued pursuant to the exercise of an Option unless
the exercise of such Option and the issuance and delivery of such Shares shall comply with applicable laws and shall be further
subject to the approval of counsel for the Company with respect to such compliance. Without derogating from the generality of the
foregoing, the Company shall not be required to issue or deliver any Shares (or any certificate or certificates for such Shares)
purchased upon exercise of any Option (or portion thereof) prior to the completion of any registration or other qualification of
such Shares, if so required under any applicable law and/or under the rulings or regulations of any governmental regulatory body
which the Committee shall, in its absolute discretion, determine to be necessary or advisable.

 

		b)	As a condition to the exercise of an Option, the Committee may require the
Optionee exercising such Option to represent and warrant at the time of such exercise, if, in the opinion of counsel for the Company
such representation is required in order to comply with any registration exemption requirement, that (i) the Shares are being purchased
only for investment and without any present intention to sell or distribute such Shares; and (ii) the Optionee shall not sell,
transfer or otherwise dispose of any of the Shares so purchased by him, except in compliance with the applicable securities laws,
and the rules and regulations thereunder. Furthermore, the Company shall have the authority to endorse upon the certificate or
certificates representing the Shares such legends referring to the foregoing restrictions, and any other applicable restriction,
as it may deem appropriate.

 

    - 10 -

     

    

 

		16.	Tax Consequences:

 

		a)	Any tax consequences arising from the grant or exercise of any Option, from
the payment for Shares covered thereby, from the sale, transfer or disposition of such Shares or from any other event or act (of
the Optionee, the Company or any Affiliate of the Company or the Trustee (if applicable)) hereunder, shall be borne solely by the
Optionee. The Company or any Affiliate or the Trustee (if applicable) shall withhold taxes according to the requirements under
the applicable laws, and it may take steps as it may deem necessary for withholding all due taxes, including, but not limited to
(i) to the extent permitted by applicable laws, deducting the amount so required to be withheld from any other amount then or thereafter
payable to an Optionee, and/or (ii) requiring an Optionee to pay to the Company or any Affiliate or to the Trustee (as the case
may be) the amount so required to be withheld as a condition for the issuance, delivery, distribution or release of any Shares.
Furthermore, such Optionee shall agree to indemnify the Company, any Affiliate that engages the Optionee and the Trustee, if applicable,
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.
Except as otherwise required by applicable laws, the Company shall not be required to release any Share certificate to an Optionee
until all required payments have been fully made.

 

		b)	Without derogating from the definition of Fair Market Value in Section 2(n)
above, and solely for the purpose of determining the tax liability with respect to the grant of Capital Gain Option Through a Trustee
pursuant to Section 102, in the event the Shares of the Company are listed for trade on any established stock exchange or national
market system or in the event the Shares of the Company will be registered for trade within ninety (90) days following the date
of grant of such Options, the Fair Marker Value of the Shares on the date of grant shall be equal to 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 trade, as the case may be, all in accordance with the provisions of Section 102(b)(3) of the Tax Ordinance.

 

		c)	With regard to Section 102 Non-Trustee Option, in the event an Optionee
shall cease to be employed by or, if applicable, cease to render his services to the Company or any Affiliate, for any reason,
the Optionee shall be obligated to provide the Company and/or its Affiliate with a security or guarantee, in the degree and manner
satisfactory to them, to cover any future tax obligation resulting from the disposition of the Options and/or the Shares acquired
thereunder.

 

		d)	With regard to Section 102 Trustee Options, the provisions of the Plan and
the Option Agreement shall be subject to the provisions of Section 102 and the tax officer's approval, which shall be deemed an
integral part of the Plan and the Option Agreement. To the extent that Section 102 and/or the tax officer's approval require the
Plan and/or the Option Agreement to contain specified provisions in order to qualify the Options for preferential tax treatment,
such provisions shall be deemed to be stated herein and/or in the Option Agreement, as applicable, and to be binding upon the Company,
any Affiliate and the Optionee.

 

		17.	Term, Amendment and Termination of the Plan:

 

		a)	The Plan shall become effective upon the later of: (i) its adoption by the
Board; or (ii) its approval by the Company's shareholders, but only if such shareholders’ approval is required under applicable
laws.

 

		b)	The Committee, at any time and from time to time, may terminate, suspend
or amend the Plan. The Committee shall obtain approval from the Company’s shareholders of any Plan amendment to the extent
necessary to comply with applicable laws. Other than in respect of a Corporate Transaction (in which case, the provisions of Section
13(c) above shall govern), no amendment, suspension or termination of the Plan shall impair the rights of any Optionee, unless
mutually agreed otherwise between the Optionee and the Committee, which agreement must be in writing and signed by the Optionee
and the Company. Termination of the Plan shall not affect the Committee’s ability to exercise the powers granted to it hereunder
with respect to Options granted under the Plan prior to the date of such termination.

 

    - 11 -

     

    

 

		18.	Inability to Obtain Authority: 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
to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

		19.	Continuance of Engagement: Neither the Plan nor any Option granted
hereunder shall impose any obligation on the Company or its Affiliates, to continue its relationship with an Optionee as a Service
Provider, and nothing in the Plan, in any Option Agreement or in any Option granted pursuant thereto shall confer upon any Optionee
any right with respect to continuing the Optionee's relationship as a Service Provider with the Company or its Affiliate nor shall
it interfere in any way with his right or the Company's or its Affiliate's right to terminate such relationship at any time, with
or without Cause, and with or without notice.

 

		20.	Non-Exclusivity of the Plan: The Plan shall not be construed as creating
any limitations on the power of the Board or the Committee to adopt such other incentive arrangements as either may deem desirable,
including without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

 

		21.	Governing Law and Jurisdiction: This Plan and all instruments issued
thereunder or in connection therewith shall be governed by and construed and enforced in accordance with the laws of the State
of Israel, without giving effect to the principles of conflict of laws thereof. Any dispute arising out of this Plan and all instruments
issued thereunder or in connection therewith shall be resolved exclusively by the appropriate court in the State of Israel.

 

		22.	Application of Funds: The proceeds received by the Company from the
sale of Shares pursuant to Options will be used for general corporate purposes of the Company.

 

		23.	Severability: If any term or other provision of this Plan is determined
to be invalid, illegal or incapable of being enforced by any applicable laws, the invalidity of such term or provision of the Plan
shall not affect the validity or enforceability of any other provision of the Plan, which shall remain in full force and effect.

 

 

 

*          *          *

 

    - 12 -

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