Document:

S-8

EXHIBIT 4.1  

ENGLISH SUMMARY
INFORMATION 

ABOUT THE 

BVR SYSTEMS (1998) LTD. 

SHARE OPTION PLAN
(2001) AS AMENDED 

This document
constitutes part of a prospectus covering 

 securities
registered under the U.S. Securities Act of 1933, as amended (the “Act”). 

	 	 	 
	  	TABLE OF CONTENTS 	PAGE 
	    INTRODUCTION 	2  
	    GENERAL PLAN INFORMATION 	2  
	    GRANT OF THE OPTIONS 	3  
	    TERMINATION OF EMPLOYMENT OR SERVICE PROVISION 	3  
	    EXERCISE OF THE OPTIONS 	4  
	    SIGNIFICANT EVENT 	4  

The date of this
summary is May 2005 

     	1.	
          INTRODUCTION 

          

     	1.1.	        
          This plan, as amended from time to time, is known as the “BVR Systems
          (1998) Ltd. – Share Option Plan (2001)" (the “Plan”).
          The Plan allows the Board of Directors, to grant from time to time, at its sole
          discretion, options to purchase Ordinary Shares of BVR Systems (1998) Ltd. (the
          “Company” or “BVR”), par value NIS 1.00 each,
          to employees of the Company and its subsidiaries and additional entities and
          individuals as shall be determined by the Board of Directors (the
          “Optionees”). 

          

     	1.2.	        
          The purpose of the Plan is to allow employees of the Company and its
          subsidiaries to partake in ownership in the Company by way of grant of options
          for the purchase of shares in the Company. By doing this the Company would like
          to make the employees, which are the most valuable resource of the Company, to
          partners in the Company’s success and form an identification between the
          interests of the employees to those of the Company, such that the success of the
          Company shall be expressed by an increased value of the assets of the employees. 

          

     	1.3.	        
          The Board of Directors may amend the Plan from time to time provided that the
          rights of the Optionees which have been granted options shall not be materially
          adversely affected. 

          

     	2.	
          GENERAL PLAN INFORMATION 

          

     	2.1.	        
          Number of Shares Reserved Under the Plan and Capital Gains Track. The
          number of shares reserved under the Plan was originally 707,900 Ordinary Shares,
          par value NIS 1.00 each. The number of shares reserved under the Plan was
          increased by an additional 5,000,000 Ordinary Shares, par value NIS each, by a
          resolution of the Board of Directors adopted January 4, 2004. In this resolution
          the Board of Directors further resolved that options granted under Section 102
          of the Israeli Income Tax Ordinance [New Version], 1961 (the “Income Tax
          Ordinance”), shall be granted as capital gains track options. 

          

     	2.2.	        
          Governing Law. The Plan is governed by, and will be construed and
          enforced in accordance with, the laws of the State of Israel. The competent
          courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters
          pertaining to the Plan. 

          

     	2.3.	        
          Administration of the Plan. The options will be granted per the
          recommendation of the Chief Executive Officer and subject to the approval of the
          Board of Directors to each Optionee and subject to any other approval as may be
          required by law. 

          

     	2.4.	        
          Trust and Trustee. Options provided under the Plan may be held in trust
          by a trustee designated by the Company (the “Trustee”), if
          necessary, to realize tax, accounting, regulatory or other benefits in a
          particular jurisdiction. 

          

- 2 -

     	2.5.	        
          General Taxation. As to the Optionees that are employees of
          BVR or its subsidiaries, the Company may resolve, at its sole discretion, to
          apply either of the following tax arrangements (i) the regulation set in Section
          102 to the Income Tax Ordinance, as shall be from time to time; or (ii) the
          regulation set in Section 3(I) to the Income Tax Ordinance. Optionees that are
          not employees of the Company or its subsidiaries shall be granted options in
          accordance with Section 3(I) to the Income Tax Ordinance. 

          

     	2.6.	        
          All tax consequences arising from the grant of any option and/or the exercise of
          any option and/or sale of the exercised shares, shall be borne solely by the
          Optionee. The Company shall not be liable for any tax consequences, whether
          directly or indirectly. 

          

     	2.7.	        
          Each Optionee shall pay the required taxes as a precondition to exercise of the
          options. The Trustee shall make all deductions as required by law. 

          

     	3.	
          GRANT OF THE OPTIONS 

          

	 3.1 	        Upon resolution
of the Board of Directors to grant options to a certain Optionee, the Optionee is issued
a letter of grant which includes the following information: (i) the number of options
granted; (ii) the vesting schedule of the options; (iii) the exercise price of the
options; (iv) any other information required.  

	3.2	        The
options are issued to the Trustee who is to hold the options in trust for the Optionees.
Exercise of the options and sale of the shares resulting from the exercise of the options
are conducted through the Trustee.  

	3.3	        Each
option grants the Optionee the right to receive upon exercise of the option one fully
paid Ordinary Share of the Company, par value NIS 1.00.  

	3.4	        Options
may be exercised at any time, as of the date of vesting and for a period of three years
thereafter (the “Exercise Period”). Upon the three years anniversary of
the vesting of the options the options shall expire and be null and void.  

	4.  	TERMINATION
OF EMPLOYMENT OR SERVICE PROVISION  

     	4.1.	        
          If the employment or provision of service between the Company and the Optionee
          is terminated, except for cause (as defined in the Plan), prior to the Optionee
          exercising in full or part the options granted to such Optionee, the Optionee
          will be entitled to exercise those Options that vested prior to the termination
          of his/her/its employment or provision of service until the expiration of the
          Exercise Period, thereafter the Options shall expire and be null and void. 

          

	 	
Options
that have not yet vested upon the termination of employment or provision of service shall
expire and be null and void. 

- 3 -

	4.2	        The
options granted are not transferable, except to legal heirs in case of death of the
Optionee and provided that at the date of death the Options have not expired.  

	5.  	EXERCISE
OF THE OPTIONS  

		5.1 	
Each Optionee granted options shall be entitled to exercise such options, in whole or in
part, only upon the completion of the required vesting schedule, as detailed in the notice
to the Optionee. 

	 	5.2 	The
exercise of options into shares is subject to the payment of the exercise price for each
of the options.

		5.3 	
An Optionee who would like to exercise his/hers/its vested options, shall provide the
Company with a Notice of Exercise, in a form prescribed by the Company. The Optionee shall
attach to the Notice of Exercise an amount equal to the exercise price multiplied by the
number of options to be exercised (the “Exercise  Amount”). The Exercise
Amount shall be paid in New Israeli Shekel in accordance with the dollar value of the
exercise price. 

		5.4 	
Notwithstanding the above, the Company may, at its sole discretion, and subject to the tax
provisions that shall apply to the Optionee, instruct that the exercise shall be made
without payment in cash such that the number of shares to be issued to the Optionee shall
be reduced in such a way to reflect the value of the shares the Optionee is entitled to
receive after deduction of the Exercise price. 

		5.5 	
The Company shall transfer to the Trustee the Notice of Exercise. The Trustee may set
additional exercise procedures as is customary by the Trustee as long as the Trustee
informs the Company and the Optionees of such procedures in writing ahead of time. 

		5.6 	
Upon receipt of the Exercise Notice along with the Exercise Amount and after notice has
been given to the Trustee, the Company shall issue to the Trustee the shares resulting
from the exercise of the options, provided the Optionee has settled, to the satisfaction
of the Company, the tax payment resulting from the exercise of the options. 

		5.7 	
The Company shall make the necessary arrangement in order to register for trade the shares
resulting from the exercise of the options. However, the Company does not undertake to
register the shares resulting from the exercise of options for trade within any specific
time from the date they are issued by the Company. 

	6.  	SIGNIFICANT
EVENT  

		6.1 	
A significant event shall mean any of the following events: (i) change of control of the
Company; (ii) purchase or an offer to purchase all or substantially all of the assets of
the Company; (iii) the merger of the Company, spin off of the Company, or any other change
of structure of the Company; or (iv) an arrangement between the Company and its
shareholders and/or creditors and/or option holders regarding purchase of its shares. 

- 4 -

		6.2 	
The Company may amend the terms of the Plan and/or terms of the options, at its sole
discretion, in any case of a Significant Event or in anticpation of such Significant
Event. The existence of the Plan shall not limit the Company from performing a Significant
Event. 

		6.3 	
In any case of a Significant Event, the Board of Directors shall be allowed, at its sole
discretion, to amend the terms of the Plan in any of the following manners, without such
being considered as having a detrimental effect on the rights of the option holders. 

	 	6.3.1 	Substitution
of the exercised shares and/or options, to which the Optionee is entitled, into shares or
other securities of the corporation into which the Company merged or into which certain
activities or assets were split off or that purchased substantially all of the assets or
activities of the Company (the “New Corporation”). The number of shres/options
shall be calculated in accordance with the number of shares or other securities of the
New Corporation that part or all of the shareholders of the Company are to receive;
and/or  

	 	6.3.2 	Exchange
of the exercised shares and/or options, to which the Optionee is entitled for a monetary
amount calculated in accordance with the consideration to be received by all or part of
the shareholders of the Company for their sale and/or transfer and/or waiver of their
shares; and/or  

	 	6.3.3 	A
monetary compensation in consideration for the cancellation of all or part of the options
not yet exercised which shall be calculated as the difference between the value of the
exercised shares to which the Optionee would have been entitled if the cancelled options
would have been exercised at such date at their exercise price.  

	 	6.4 	Without
derogating from the above, in case of a Significant Event, the Board of Directors will be
entitled to demand from the Optionees to immediately exercise those options that have
vested and determine that any such options that are not exercised shall expire. 

	 	
Further,
the Board of Directors shall be entitled to demand from the Optionees to sell their
shares to the Company or to a third party involved in the Significant Event, in
consideration for the fair value of such shares.  

- 5 -[NONSTATUTORY] [INCENTIVE] STOCK OPTION AGREEMENT

NONSTATUTORY STOCK OPTION AGREEMENT

Employee Form -- 6/13/05 Grants

AGREEMENT made as of the 13th day of June 2005, between NATCO Group Inc., a Delaware corporation (the "Company"), and ______________________________ ("Employee").

To carry out the purposes of the NATCO Group Inc. [1998/2001/2004] Stock Incentive Plan (the "Plan"), by affording Employee the opportunity to purchase shares of the common stock of the Company, par value $0.01 per share ("Stock"), and in consideration of the mutual agreements and other matters set forth herein and in the Plan, the Company and Employee hereby agree as follows:

1.Grant of Option.  The Company hereby irrevocably grants to Employee the right and option ("Option") to purchase all or any part of an aggregate of ______ shares of Stock on the terms and conditions set forth herein and in the Plan, which Plan is incorporated herein by reference as a part of this Agreement.  In the event of any conflict between the terms of this Agreement and the Plan, the Plan shall control.  Capitalized terms used but not defined in this Agreement shall have the meaning attributed to such terms under the Plan, unless the context requires otherwise.  This Option shall not be treated as an incentive stock option within the meaning of section 422(b) of the Code.

2.Purchase Price.  The purchase price of Stock purchased pursuant to the exercise of this Option shall be $11.43 per share, which has been determined to be not less than 100% of the Fair Market Value of the Stock at the date of grant of this Option.  For all purposes of this Agreement, Fair Market Value of Stock shall be determined in accordance with the provisions of the Plan.

3.Exercise of Option.  Subject to the earlier expiration of this Option as herein provided, this Option may be exercised, by written notice to the Company at its principal executive office addressed to the attention of its Corporate Secretary (or such other officer or employee of the Company as the Company may designate from time to time), at any time and from time to time after the date of grant hereof, but, except as otherwise provided below, this Option shall not be exercisable for more than a percentage of the aggregate number of shares offered by this Option determined by the number of full years from the date of grant hereof to the date of such exercise, in accordance with the following schedule:

	

Number of Full Years
	

Percentage of Shares

That May Be Purchased

	

Less than 1 year
	

0%

	

1 year
	

33-1/3%

	

2 years
	

66-2/3%

	

3 years or more
	

100%

This Option may be exercised only while Employee remains an employee of the Company and will terminate and cease to be exercisable upon Employee's termination of employment with the Company, except that:

	If Employee's employment with the Company terminates by reason of disability (within the meaning of section 22(e)(3) of the Code) or retirement (within the meaning of the Company's standard corporate policies, this Option may be exercised in full by Employee (or Employee's estate or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Employee) at any time during the period of one year following such termination.

	If Employee dies while in the employ of the Company, Employee's estate, or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Employee, may exercise this Option in full at any time during the period of one year following the date of Employee's death.

	If Employee's employment with the Company terminates for any reason other than as described in (a) or (b) above, unless Employee voluntarily terminates such employment or such employment is terminated for cause, this Option may be exercised by Employee at any time during the period of three months following such termination, or by Employee's estate (or the person who acquires this Option by will or the laws of descent and distribution or otherwise by reason of the death of Employee) during a period of one year following Employee's death if Employee dies during such three month period, but in each case only as to the number of shares Employee was entitled to purchase hereunder as of the date Employee's employment so terminates.  The Committee may, in its sole discretion, advise Employee in writing, prior to a voluntary termination of Employee's employment, that such termination will be treated for purposes of this paragraph as an involuntary termination for a reason other than cause.  As used in this paragraph, the term "cause" shall mean Employee (i) has been convicted of a misdemeanor involving moral turpitude or of a felony, (ii) has engaged in gross negligence or willful misconduct in the performance of the duties of Employee's employment, (iii) has willfully disregarded any written corporate policies established by the Company, or (iv) has materially breached any material provision of any written agreement between Employee and the Company or any of its Affiliates. 

This Option shall not be exercisable in any event after the expiration of ten years from the date of grant hereof.  The purchase price of shares as to which this Option is exercised shall be paid in full at the time of exercise (a) in cash (including check, bank draft or money order payable to the order of the Company), (b) by delivering or constructively tendering to the Company shares of Stock having a Fair Market Value equal to the purchase price (provided such shares used for this purpose must have been held by Employee for such minimum period of time as may be established from time to time by the Committee), (c) if the Stock is readily tradable on a national securities market, through a "cashless-broker" exercise in accordance with a Company established policy or program for the same, or (d) any combination of the foregoing.  No fraction of a share of Stock shall be issued by the Company upon exercise of an Option or accepted by the Company in payment of the exercise price thereof; rather, Employee shall provide a cash payment for such amount as is necessary to effect the issuance and acceptance of only whole shares of Stock.  Unless and until a certificate or certificates representing such shares shall have been issued by the Company to Employee, Employee (or the person permitted to exercise this Option in the event of Employee's death) shall not be or have any of the rights or privileges of a shareholder of the Company with respect to shares acquirable upon an exercise of this Option.

4.Withholding of Tax.  To the extent that the exercise of this Option or the disposition of shares of Stock acquired by exercise of this Option results in compensation income or wages to Employee for federal, state or local tax purposes, Employee shall deliver to the Company at the time of such exercise or disposition such amount of money or shares of Stock as the Company may require to meet its minimum obligation under applicable tax laws or regulations.  No exercise of this option shall be effective until Employee (or the person entitled to exercise this Option, as applicable) has made arrangements approved by the Company to satisfy all applicable minimum tax withholding requirements of the Company.

5.Status of Stock.  The Company intends to register for issuance under the Securities Act of 1933, as amended (the "Act") the shares of Stock acquirable upon exercise of this Option, and to keep such registration effective throughout the period this Option is exercisable.  In the absence of such effective registration or an available exemption from registration under the Act, issuance of shares of Stock acquirable upon exercise of this Option will be delayed until registration of such shares is effective or an exemption from registration under the Act is available.  The Company intends to use its reasonable efforts to ensure that no such delay will occur.  In the event exemption from registration under the Act is available upon an exercise of this Option, Employee (or the person permitted to exercise this Option in the event of Employee's death or incapacity), if requested by the Company to do so, will execute and deliver to the Company in writing an agreement containing such provisions as the Company may require to assure compliance with applicable securities laws.

Employee agrees that the shares of Stock which Employee may acquire by exercising this Option will not be sold or otherwise disposed of in any manner which would constitute a violation of any applicable federal or state securities laws.  Employee also agrees that (i) the certificates representing the shares of Stock purchased under this Option may bear such legend or legends as the Committee deems appropriate in order to assure compliance with applicable securities laws, (ii) the Company may refuse to register the transfer of the shares of Stock purchased under this Option on the stock transfer records of the Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable securities law, and (iii) the Company may give related instructions to its transfer agent, if any, to stop registration of the transfer of the shares of Stock purchased under this Option.

[Include only for Section 16 Officers:  6.Stock Retention Requirement.  Employee is required to retain at least one-third of the Shares received upon exercise for a period of three years after exercise, unless (a) his employment with the Company, an Affiliate, or a corporation or a parent or subsidiary of such corporation, sooner terminates for any reason or (b) the Governance, Nominating & Compensation Committee of the Company's Board of Directors (or successor committee under the ________ Plan) shall approve on a case-by-case basis for demonstrated need or special circumstance.]

7.Employment Relationship.  For purposes of this Agreement, Employee shall be considered to be in the employment of the Company as long as Employee remains an employee of either the Company, an Affiliate, or a corporation or a parent or subsidiary of such corporation assuming or substituting a new option for this Option.  Without limiting the scope of the preceding sentence, it is expressly provided that Employee shall be considered to have terminated employment with the Company at the time of the termination of the "Affiliate" status under the Plan of the entity or other organization that employs Employee.  Any question as to whether and when there has been a termination of such employment, and the cause of such termination, shall be determined by the Committee and its determination shall be final.

8.Binding Effect.  This Agreement shall be binding upon and inure to the benefit of any successors to the Company and all persons lawfully claiming under Employee.

9.Entire Agreement.  This Agreement constitutes the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to the Option granted hereby.  Without limiting the scope of the preceding sentence, all prior understandings and agreements, if any, among the parties hereto relating to the subject matter hereof are hereby null and void and of no further force and effect.  Any modification of this Agreement shall be effective only if it is in writing and signed by both Employee and an authorized officer of the Company.

10.Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without regard to conflicts of laws principles thereof.

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer thereunto duly authorized, and Employee has executed this Agreement, all as of the day and year first above written.

NATCO GROUP INC.

By:

Employee

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