Document:

IXI
      MOBILE, INC.

     

    2000
      SECOND AMENDED AND RESTATED STOCK INCENTIVE PLAN

     

    1. Purposes
      of the Plan.
      The
      purposes of this Stock Plan are to attract and retain the best available
      personnel for positions of substantial responsibility, to provide additional
      incentive to Employees, Directors and Consultants and to promote the success
      of
      the Company's business. Options granted under the Plan may be Incentive Stock
      Options or Nonstatutory Stock Options, as determined by the Committee at the
      time of grant. 

     

    2. Definitions.
      As used
      herein, the following definitions shall apply:

     

    (a) “Applicable
      Laws”
means
      the requirements relating to the administration of stock option plans under
      U.S.
      state corporate laws, U.S. federal and state securities laws, the Code, any
      stock exchange or quotation system on which the Common Stock is listed or quoted
      and the applicable laws of any other country or jurisdiction where Options
      are
      granted under the Plan.

     

    (b) “Board”
means
      the Board of Directors of the Company.

     

    (c) “Cause”
      means,
      with
      respect to the termination by the Company, a Subsidiary or a Successor
      Corporation, of an Optionee’s services, that such termination is for “Cause” as
      such term is expressly defined in a then-effective written agreement between
      the
      Optionee and the Company or such Subsidiary or Successor Corporation, or in
      the
      absence of such then-effective written agreement and definition, is based on,
      in
      the determination of the Committee, the Optionee’s: (i) material breach of any
      written agreement with the Company or such Subsidiary or Successor Corporation;
      or (ii) conviction of a crime involving dishonesty, breach of trust, or physical
      or emotional harm to any person. 

     

    (d) “Change
      in Control”
means
      the occurrence of any of the following events:

     

    (i) Any
      “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act)
      becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),
      directly or indirectly, of securities of the Company representing fifty percent
      (50%) or more of the total voting power represented by the Company’s then
      outstanding voting securities; or

     

    (ii) The
      consummation of the sale or disposition by the Company of all or substantially
      all of the Company’s assets; or

     

    (iii) The
      consummation of a merger or consolidation of the Company with any other
      corporation, other than a merger or consolidation which would result in the
      voting securities of the Company outstanding immediately prior thereto
      continuing to represent (either by remaining outstanding or by being converted
      into voting securities of the surviving entity or its parent) at least fifty
      percent (50%) of the total voting power represented by the voting securities
      of
      the Company or such surviving entity or its parent outstanding immediately
      after
      such merger or consolidation.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (e) “Code”
means
      the Internal Revenue Code of 1986, as amended.

     

    (f) “Committee”
means
      the Board or any committee of one or more Directors appointed by the Board
      in
      accordance with Section 4 hereof as shall be administering the
      Plan.

     

    (g) “Common
      Stock”
means
      the Common Stock of the Company.

     

    (h) “Company”
means
      IXI Mobile, Inc., a Delaware
      corporation.

     

    (i) “Consultant”
means
      any natural person who is engaged by the Company or any Parent or Subsidiary
      to
      render consulting or advisory services to such entity and who satisfies the
      requirements of subsection (c)(1) of Rule 701 under the Securities Act of 1933,
      as amended. 

     

    (j) “Director”
means
      a
      member of the Board.

     

    (k) “Disability”
means
      total and permanent disability as defined in Section 22(e)(3) of the
      Code.

     

    (l) “Employee”
means
      any person, including officers and Directors, employed by the Company or any
      Parent or Subsidiary of the Company. A Service Provider shall not cease to
      be an
      Employee in the case of (i) any leave of absence approved by the Company or
      (ii)
      transfers between locations of the Company or between the Company, its Parent,
      any Subsidiary, or any successor. For purposes of Incentive Stock Options,
      no
      such leave may exceed ninety (90) days, unless reemployment upon expiration
      of
      such leave is guaranteed by statute or contract. If reemployment upon expiration
      of a leave of absence approved by the Company is not so guaranteed, then three
      (3) months following the 90th day of such leave, any Incentive Stock Option
      held
      by the Optionee shall cease to be treated as an Incentive Stock Option and
      shall
      be treated for tax purposes as a Nonstatutory Stock Option. Neither service
      as a
      Director nor payment of a director's fee by the Company shall be sufficient
      to
      constitute “employment” by the Company.

     

    (m) “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended. 

     

    (n) “Fair
      Market Value”
means,
      as of any date, the value of Common Stock determined as follows:

     

    (i) If
      the
      Common Stock is listed on any established stock exchange or a national market
      system, including without limitation the Nasdaq National Market or The Nasdaq
      SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be
      the
      closing sales price for such stock (or the closing bid, if no sales were
      reported) as quoted on such exchange or system on the day of determination,
      as
      reported in The
      Wall Street Journal
      or such
      other source as the Committee deems reliable;

     

    (ii) If
      the
      Common Stock is regularly quoted by a recognized securities dealer but selling
      prices are not reported, its Fair Market Value shall be the mean between the
      high bid and low asked prices for the Common Stock on the day of determination;
      or

     

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

    
      
        
        

      

      
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    (o) “IPO”
shall
      mean the first public offering by the Company of its Common Stock pursuant
      to an
      offering registered under the Securities Act.

     

    (p) “Incentive
      Stock Option”
means
      an Option intended to qualify as an incentive stock option within the meaning
      of
      Section 422 of the Code. 

     

    (q) “Nonstatutory
      Stock Option”
means
      an Option not intended to qualify as an Incentive Stock Option.

     

    (r) “Option”
means
      a
      stock option granted pursuant to the Plan.

     

    (s) “Option
      Agreement”
means
      a
      written or electronic agreement between the Company and an Optionee evidencing
      the terms and conditions of an individual Option grant. The Option Agreement
      is
      subject to the terms and conditions of the Plan.

     

    (t) “Optioned
      Stock”
means
      the Common Stock subject to an Option.

     

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

     

    (v) “Parent”
means
      a
“parent corporation,” whether now or hereafter existing, as defined in Section
      424(e) of the Code. 

     

    (w) “Plan”
means
      this 2000 Stock Incentive Plan.

     

    (x) “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    (y) “Service
      Provider”
means
      an Employee, Director or Consultant.

     

    (z) “Share”
means
      a
      share of the Common Stock, as adjusted in accordance with Section 12
      below.

     

    (aa) “Subsidiary”
means
      a
“subsidiary corporation,” whether now or hereafter existing, as defined in
      Section 424(f) of the Code.

     

    (bb) “Successor
      Corporation”
means
      the merged, consolidated, surviving or acquiring corporation or entity, as
      the
      case may be, in any merger or Change in Control (including, if applicable,
      the
      Company). 

     

    3. Stock
      Subject to the Plan.
      

     

    (a) Basic
      Limitation.
      The
      maximum aggregate number of Shares that may be subject to Options and sold
      under
      this Plan, the IXI Mobile, Inc. 2000 Israeli Stock Option Plan and the IXI
      Mobile, Inc. 2003 Israeli Stock Option Plan (each as amended from time to time)
      (collectively, the "Equity Plans") is 20,000,000 Shares (the "Common Reserve").
      To the extent Options, options or other awards covering Shares are issued under
      any Equity Plan, the Common Reserve shall be appropriately reduced by the number
      of Shares subject to such awards. The Shares may be authorized but unissued,
      or
      reacquired Common Stock. The number of Shares that are subject to Options
      outstanding at any time under the Plan shall not exceed the number of Shares
      that then remain available for issuance under the Equity Plans.

    
      
        
        

      

      
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    (b) Additional
      Shares.
      In the
      event that any outstanding Option for any reason expires or is canceled or
      otherwise terminated, the Shares allocable to the unexercised portion of such
      Option shall again be available for the purposes of the Equity Plans (unless
      any
      such Equity Plan has terminated) and shall be added back to the Common Reserve.
      In the event that Shares of restricted stock issued under the Plan are
      reacquired by the Company at their original purchase price, such Shares shall
      again be available for the purposes of the Equity Plans and shall be returned
      to
      the Common Reserve.

     

    4. Administration
      of the Plan.

     

    (a) Committee.
      The
      Plan shall be administered by the Board or a Committee appointed by the Board,
      which Committee shall be constituted to comply with Applicable
      Laws.

     

    (b) Powers
      of the Committee.
      Subject
      to the provisions of the Plan and, in the case of a Committee, the specific
      duties delegated by the Board to such Committee, and subject to the approval
      of
      any relevant authorities, the Committee shall have the authority in its
      discretion:

     

    (i) to
      determine the Fair Market Value;

     

    (ii) to
      select
      the Service Providers to whom Options may from time to time be granted
      hereunder;

     

    (iii) to
      determine the number of Shares to be covered by each such Option granted
      hereunder;

     

    (iv) to
      approve forms of agreement for use under the Plan;

     

    (v) to
      determine the terms and conditions of any Option granted hereunder. Such terms
      and conditions include, but are not limited to, the exercise price, the time
      or
      times when Options may be exercised (which may be based on performance
      criteria), any vesting acceleration or waiver of forfeiture restrictions, and
      any restriction or limitation regarding any Option or the Common Stock relating
      thereto, based in each case on such factors as the Committee, in its sole
      discretion, shall determine;

     

    (vi) to
      prescribe, amend and rescind rules and regulations relating to the Plan,
      including rules and regulations relating to sub-plans established for the
      purpose of satisfying applicable foreign laws;

     

    (vii) to
      allow
      Optionees to satisfy withholding tax obligations by electing to have the Company
      withhold from the Shares to be issued upon exercise of an Option that number
      of
      Shares having a Fair Market Value equal to the minimum amount required to be
      withheld. The Fair Market Value of the Shares to be withheld shall be determined
      on the date that the amount of tax to be withheld is to be determined. All
      elections by Optionees to have Shares withheld for this purpose shall be made
      in
      such form and under such conditions as the Committee may deem necessary or
      advisable; and

     

    
      
        
        

      

      
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      (viii) to
        construe and interpret the terms of the Plan and Options granted pursuant
        to the
        Plan.

       

    

    (c) Effect
      of Committee's Decision.
      All
      decisions, determinations and interpretations of the Committee shall be final
      and binding on all Optionees.

     

    5. Eligibility.
      Nonstatutory Stock Options may be granted to Service Providers. Incentive Stock
      Options may be granted only to Employees.

     

    6. Limitations.

     

    (a) Incentive
      Stock Option Limit.
      Each
      Option shall be designated in the Option Agreement as either an Incentive Stock
      Option or a Nonstatutory Stock Option. However, notwithstanding such
      designation, to the extent that the aggregate Fair Market Value of the Shares
      with respect to which Incentive Stock Options are exercisable for the first
      time
      by the Optionee during any calendar year (under all plans of the Company and
      any
      Parent or Subsidiary) exceeds $100,000, such Options shall be treated as
      Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock
      Options shall be taken into account in the order in which they were granted.
      The
      Fair Market Value of the Shares shall be determined as of the time the Option
      with respect to such Shares is granted.

     

    (b) At-Will
      Employment.
      Neither
      the Plan nor any Option shall confer upon any Optionee any right with respect
      to
      continuing the Optionee's relationship as a Service Provider with the Company,
      nor shall it interfere in any way with his or her right or the Company's right
      to terminate such relationship at any time, with or without cause, and with
      or
      without notice.

     

    7. Term
      of Plan.
      Subject
      to shareholder approval in accordance with Section 18, the Plan shall become
      effective upon its adoption by the Board. Unless sooner terminated under Section
      14, it shall continue in effect for a term of ten (10) years from the later
      of
      (i) the effective date of the Plan, or (ii) the date of the most recent Board
      approval of an increase in the number of Shares reserved for issuance under
      the
      Plan.

     

    8. Term
      of Option.
      The
      term of each Option shall be stated in the Option Agreement; provided, however,
      that the term shall be no more than ten (10) years from the date of grant
      thereof. In the case of an Incentive Stock Option granted to an Optionee who,
      at
      the time the Option is granted, owns stock representing more than ten percent
      (10%) of the voting power of all classes of stock of the Company or any Parent
      or Subsidiary, the term of the Option shall be five (5) years from the date
      of
      grant or such shorter term as may be provided in the Option
      Agreement.

     

    9. Option
      Exercise Price and Consideration.

     

    (a) Exercise
      Price.
      The per
      share exercise price for the Shares to be issued upon exercise of an Option
      shall be such price as is determined by the Committee, but shall be subject
      to
      the following:

     

    (i) In
      the
      case of an Incentive Stock Option

    
      
        
        

      

      
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    (A) granted
      to an Employee who, at the time of grant of such Option, owns stock representing
      more than ten percent (10%) of the voting power of all classes of stock of
      the
      Company or any Parent or Subsidiary, the exercise price shall be no less than
      110% of the Fair Market Value per Share on the date of grant.

     

    (B) granted
      to any other Employee, the per Share exercise price shall be no less than 100%
      of the Fair Market Value per Share on the date of grant.

     

    (ii) In
      the
      case of a Nonstatutory Stock Option

     

    (A) granted
      to a Service Provider who, at the time of grant of such Option, owns stock
      representing more than ten percent (10%) of the voting power of all classes
      of
      stock of the Company or any Parent or Subsidiary, the exercise price shall
      be no
      less than 110% of the Fair Market Value per Share on the date of
      grant.

     

    (B) granted
      to any other Service Provider, the per Share exercise price shall be no less
      than 85% of the Fair Market Value per Share on the date of grant.

     

    (iii) Notwithstanding
      the foregoing, Options may be granted with a per Share exercise price other
      than
      as required above pursuant to a merger or other corporate
      transaction.

     

    (b) Forms
      of Consideration.
      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 (and,
      in
      the case of an Incentive Stock Option, shall be determined at the time of
      grant), in its sole and absolute discretion. Such consideration may consist
      of,
      without limitation, cash, check, or consideration received by the Company under
      a formal cashless exercise program adopted by the Company (if at all, in its
      sole and absolute discretion) in connection with the Plan, or any combination
      of
      the foregoing methods of payment. 

     

    10. Exercise
      of Option.

     

    (a) Procedure
      for Exercise; Rights as a Shareholder.
      Any
      Option granted hereunder shall be exercisable according to the terms hereof
      at
      such times and under such conditions as determined by the Committee and set
      forth in the Option Agreement. Except in the case of Options granted to
      officers, Directors and Consultants, Options shall become exercisable at a
      rate
      of no less than 20% per year over five (5) years from the date the Options
      are
      granted. Unless the Committee provides otherwise, and subject to the above
      20%
      per year over five years limitation (if applicable), vesting of Options granted
      hereunder to Optionees shall be suspended during any unpaid leave of absence.
      An
      Option may not be exercised for a fraction of a Share.

     

    An
      Option
      shall be deemed exercised when the Company receives (i) written or electronic
      notice of exercise (in accordance with the Option Agreement) from the person
      entitled to exercise the Option, and (ii) full payment for the Shares with
      respect to which the Option is exercised. Full payment may consist of any
      consideration and method of payment authorized by the Committee in its sole
      and
      absolute discretion and permitted by the Option Agreement and the Plan. 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
      vote
      or 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. No adjustment will be made for a dividend or other right for which
      the record date is prior to the date the Shares are issued, except as provided
      in Section 12 of the Plan.

    
      
        
        

      

      
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    Exercise
      of an Option in any manner shall result in a decrease in the number of Shares
      thereafter available, both for purposes of the Plan and for sale under the
      Option, by the number of Shares as to which the Option is
      exercised.

     

    (b) Termination
      of Relationship as a Service Provider.
      If an
      Optionee ceases to be a Service Provider, such Optionee may exercise his or
      her
      Option within thirty (30) days of termination, or such longer period of time
      as
      specified in the Option Agreement, to the extent that the Option is vested
      on
      the date of termination (but in no event later than the expiration of the term
      of the Option as set forth in the Option Agreement). If, on the date of
      termination, the Optionee is not vested as to his or her entire Option, the
      Shares covered by the unvested portion of the Option shall revert to the Plan.
      If, after termination, the Optionee does not exercise his or her Option within
      the time specified by the Committee, the Option shall terminate, and the Shares
      covered by such Option shall revert to the Plan.

     

    (c) Disability
      of Optionee.
      If an
      Optionee ceases to be a Service Provider as a result of the Optionee's
      Disability, the Optionee may exercise his or her Option within six (6) months
      of
      termination, or such longer period of time as specified in the Option Agreement,
      to the extent the Option is vested on the date of termination (but in no event
      later than the expiration of the term of such Option as set forth in the Option
      Agreement). If, on the date of termination, the Optionee is not vested as to
      his
      or her entire Option, the Shares covered by the unvested portion of the Option
      shall revert to the Plan. If, after termination, the Optionee does not exercise
      his or her Option within the time specified herein, the Option shall terminate,
      and the Shares covered by such Option shall revert to the Plan.

     

    (d) Death
      of Optionee.
      If an
      Optionee dies while a Service Provider, the Option may be exercised within
      six
      (6) months following Optionee’s death, or such longer period of time as
      specified in the Option Agreement, to the extent that the Option is vested
      on
      the date of death (but in no event later than the expiration of the term of
      such
      Option as set forth in the Option Agreement) by the Optionee’s designated
      beneficiary, provided such beneficiary has been designated prior to Optionee’s
      death in a form acceptable to the Committee. If no such beneficiary has been
      designated by the Optionee, then such Option may be exercised by the personal
      representative of the Optionee’s estate or by the person(s) to whom the Option
      is transferred pursuant to the Optionee’s will or in accordance with the laws of
      descent and distribution. If, at the time of death, the Optionee is not vested
      as to his or her entire Option, the Shares covered by the unvested portion
      of
      the Option shall immediately revert to the Plan. If the Option is not so
      exercised within the time specified herein, the Option shall terminate, and
      the
      Shares covered by such Option shall revert to the Plan.

     

    11. Limited
      Transferability of Options.
      Unless
      determined otherwise by the Committee, Options may not be sold, pledged,
      assigned, hypothecated, transferred, or disposed of in any manner other than
      by
      will or the laws of descent and distribution, and may be exercised during the
      lifetime of the Optionee, only by the Optionee. If the Committee in its sole
      discretion makes an Option transferable, such Option may only be transferred
      by
      (i) will, (ii) the laws of descent and distribution, (iii) instrument to an
      inter vivos or testamentary trust in which the Option is to be passed to
      beneficiaries upon the death of the Optionee, or (iv) gift to a member of
      Optionee’s immediate family (as such term is defined in Rule 16a-1(e) of the
      Exchange Act). In addition, any transferable Option shall contain additional
      terms and conditions as the Committee deems appropriate.

    
      
        
        

      

      
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    12. Adjustments
      Upon Changes in Capitalization, Merger or Change in Control.

     

    (a) Changes
      in Capitalization.
      Subject
      to any required action by the shareholders of the Company, the number and type
      of Shares which have been authorized for issuance under the Plan but as to
      which
      no Options 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 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, combination or reclassification of the
      Common Stock, or any other increase or decrease in the number of issued shares
      of Common Stock effected without receipt of consideration by the Company. 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 Board, whose determination in that respect shall be final, binding
      and conclusive. Except as expressly provided herein, no issuance by the Company
      of shares of stock of any class, or securities convertible into shares of stock
      of any class, shall affect, and no adjustment by reason thereof shall be made
      with respect to, the number, type or price of Shares subject to an
      Option.

     

    (b) Dissolution
      or Liquidation.
      In the
      event of the proposed dissolution or liquidation of the Company, the Committee
      shall notify each Optionee as soon as practicable prior to the effective date
      of
      such proposed transaction. The Committee in its discretion may provide for
      an
      Optionee to have the right to exercise his or her Option until fifteen (15)
      days
      prior to such transaction as to all of the Optioned Stock covered thereby,
      including Shares as to which the Option would not otherwise be exercisable.
      In
      addition, the Committee may provide that any Company repurchase option
      applicable to any Shares purchased upon exercise of an Option shall lapse as
      to
      all such Shares, provided the proposed dissolution or liquidation takes place
      at
      the time and in the manner contemplated. To the extent it has not been
      previously exercised, an Option will terminate immediately prior to the
      consummation of such proposed action.

     

    (c) Merger
      or Change in Control.
      In the
      event of a merger of the Company with or into another corporation, or a Change
      in Control, each outstanding Option shall be assumed, or an equivalent option
      substituted, by the Successor Corporation (or a Parent or Subsidiary of the
      Successor Corporation). For the purposes of this paragraph, the Option shall
      be
      considered assumed if, following the merger or Change in Control, the Option
      confers the right to purchase or receive, for each Share of Optioned Stock
      immediately prior to the merger or Change in Control, the consideration (whether
      stock, cash, or other securities or property) received in the merger or Change
      in Control by holders of Common Stock for each 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
      Shares); provided, however, that if such consideration received in the merger
      or
      Change in Control is not solely common stock 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 Share of Optioned Stock, to be solely common stock of
      the
      Successor Corporation or its Parent equal in fair market value to the per share
      consideration received by holders of Common Stock in the merger or Change in
      Control.

    
      
        
        

      

      
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    Notwithstanding
      the above, the Board, or the board of directors of the Successor Corporation,
      may determine at its sole and absolute discretion, which determination shall
      be
      final and binding on all Optionees, that, in lieu of such assumption or
      substitution: (i) all outstanding Options must be exercised (to the extent,
      and
      with respect to such number of Shares, as that they may be exercised at such
      time) within a specified period of time prior to such merger or Change in
      Control, or such Options will expire and be terminated (provided, however,
      that
      Optionees shall subsequently be entitled, and at the discretion of the Board
      or
      the board of directors of the Successor Corporation, be required, to participate
      in the merger or Change in Control by selling or exchanging (as the case may
      be)
      the Shares purchased as a result of such exercise, in the merger or Change
      in
      Control transaction); or (ii) the Company or the Successor Corporation (or
      its
      Parent or Subsidiary) shall, upon the effective date of such merger or Change
      in
      Control or within a specified period of time before or after the same, purchase,
      and thereby terminate, all outstanding Options for an amount equal to the excess
      of the Fair Market Value of the Shares that were vested under each Option at
      such time over the Exercise Price thereof, and/or to purchase all Shares that
      were purchased by Optionees under any Option prior to such merger or Change
      in
      Control, on the effective date thereof, for the Fair Market Value of such
      Shares; such amount to be paid in cash, stock or a combination thereof, as
      set
      forth above.

     

    If,
      in
      the event of a merger or Change in Control, any Options are not assumed or
      substituted as aforesaid, and the Board or the board of directors of the
      Successor Corporation does not determine otherwise (either pursuant to the
      above
      paragraph or otherwise) in its sole and absolute discretion, then any and all
      such Options shall, to the extent not exercised earlier, terminate and expire
      immediately upon the effective date of such merger or Change in
      Control.

     

    Notwithstanding
      anything contained herein to the contrary, if, prior to the IPO, all or
      substantially all of the Shares of the Company are to be sold, exchanged or
      otherwise disposed of in connection with a merger or Change in Control
      transaction, then the Board or the board of directors of the Successor
      Corporation may determine, at its sole and absolute discretion, which
      determination shall be final and binding on all Optionees, that any and all
      Optionees that have exercised their Options be obligated to participate in
      such
      merger or Change in Control transaction by selling, exchanging or otherwise
      disposing of (as the case may be) all Shares purchased by such Optionees
      pursuant to such Options, on the effective date of such merger or Change in
      Control, for the Fair Market Value thereof; such amount to be paid in cash,
      stock or a combination thereof, as set forth hereinabove. For the avoidance
      of
      doubt, it is hereby clarified that the person designated by the Company as
      Escrow Agent (defined in Section 20 hereof) hereunder shall have full right
      and
      authority, in the name of such Optionees, to sign, execute, deliver, file and/or
      fill in, in any and all necessary or appropriate places, any stock assignments,
      stock certificates, or any other necessary or applicable documentation as may
      be
      required in connection with the transfer, sale, exchange or disposition of
      such
      Shares as aforesaid.

     

    13. Time
      of Granting Options.
      The
      date of grant of an Option shall, for all purposes, be the date on which the
      Committee makes the determination granting such Option, or such later date
      as is
      determined by the Committee. Notice of the determination shall be given to
      each
      Service Provider to whom an Option is so granted within a reasonable time after
      the date of such grant.

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    14. Amendment
      and Termination of the Plan.

     

    (a) Amendment
      and Termination.
      The
      Board may at any time amend, alter, suspend or terminate the Plan.

     

    (b) Shareholder
      Approval.
      The
      Board shall obtain shareholder approval of any Plan amendment to the extent
      necessary and desirable to comply with Applicable Laws. 

     

    (c) Effect
      of Amendment or Termination.
      No
      amendment, alteration, 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.

     

    15. Conditions
      Upon Issuance of Shares.

     

    (a) Legal
      Compliance.
      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.

     

    (b) Investment
      Representations.
      As a
      condition to the exercise of an Option, the Committee may require the person
      exercising such Option to represent and warrant at the time of any such exercise
      that the Shares are being purchased only for investment and without any present
      intention to sell or distribute such Shares if, in the opinion of counsel for
      the Company, such a representation is required.

     

    16. 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.

     

    17. Reservation
      of Shares.
      The
      Company, during the term of this Plan, shall at all times reserve and keep
      available such number of Shares as shall be sufficient to satisfy the
      requirements of the Plan.

     

    18. Shareholder
      Approval.
      The
      Plan shall be subject to approval by the shareholders of the Company within
      twelve (12) months after the date the Plan is adopted. Such shareholder approval
      shall be obtained in the degree and manner required under Applicable
      Laws.

     

    19. Information
      to Optionees.
      The
      Company shall provide to each Optionee and to each individual who acquires
      Shares pursuant to the Plan, not less frequently than annually during the period
      such Optionee has one or more Options outstanding, and, in the case of an
      individual who acquires Shares pursuant to the Plan, during the period such
      individual owns such Shares, copies of annual financial statements. The Company
      shall not be required to provide such statements to key employees whose duties
      in connection with the Company assure their access to equivalent
      information.

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    20. Restrictions
      on Optionees and Shares.
      Without
      derogating from any other provision, restriction or undertaking contained herein
      or in any Option Agreement (including without limitation any right of first
      refusal or repurchase right contained therein or in any exhibit thereto), the
      Optionees, and any and all Shares purchased by Optionees pursuant to any
      Options, shall be subject to the following limitations and restrictions prior
      to
      and until the effective date of the IPO:

     

    (a) In
      no
      event shall any Shares purchased upon exercise of any Option be sold, given
      away, assigned, pledged, hypothecated, disposed of or otherwise transferred
      (i)
      to a competitor of the Company, its Parent or Subsidiary, (ii) if such transfer
      would result in any incremental tax to the Company, its stockholders, Parent
      or
      Subsidiary, or (iii) if the Board of Directors believes in good faith such
      transfer may adversely affect the Company, its Parent or
      Subsidiary;

     

    (b) As
      security for each Optionee’s faithful performance of the terms of this Plan and
      of the Option Agreement between each Optionee and the Company, including without
      limitation the restrictions on transfer of Shares, the right of first refusal
      and the transfer of the Shares upon a Merger or Change in Control, and to ensure
      that the Shares will be available for delivery in any such instance, each
      Optionee shall, upon the exercise of his or her Option, and as a condition
      to
      the issuance of any Shares pursuant thereto, deliver to and deposit with a
      person designated by the Board, as Escrow Agent (“Escrow Agent”), such number of
      Stock Assignments as shall be determined by the Committee, duly endorsed (with
      date and number of shares blank), together with the certificate or certificates
      evidencing the Shares; said documents to be held by the Escrow Agent and
      delivered by Escrow Agent pursuant to the provisions of this Plan and of the
      Option Agreement between each Optionee and the Company, and, at the Company’s
      discretion, pursuant to more detailed joint escrow instructions of the Company
      and the Optionee, in a form as shall be determined by the Company at its sole
      and absolute discretion. It is clarified that the above restrictions shall
      also
      apply to any permitted transferee or assignee of the Shares, prior to the
      IPO;

     

    (c) The
      Escrow Agent shall be indemnified and held harmless by the Company against
      any
      costs or expenses (including counsel fees) reasonably incurred by such person,
      or any liabilities (including any sum paid in settlement of a claim with the
      approval of the Company) arising out of any act or omission, in connection
      with
      the voting of such proxy or the fulfillment of such person’s duties or
      responsibilities as Escrow Agent, unless arising out of fraud or bad faith,
      and
      to the extent permitted pursuant to Applicable Laws. Such indemnification shall
      be in addition to any rights of indemnification such person may have, as a
      director or otherwise, pursuant to applicable law, to the Company's Certificate
      of Incorporation, its By Laws, or pursuant to any agreement, stockholders’ or
      disinterested directors’ resolutions or consents, insurance policy or otherwise;
      and

     

    (d) Each
      Optionee, if so requested by the Company or any representative of the
      underwriters (the “Managing
      Underwriter”)
      in
      connection with any registration of the offering of any securities of the
      Company under the Securities Act, shall not sell or otherwise transfer any
      Shares or other securities of the Company during the 180-day period (or such
      other period as may be requested in writing by the Managing Underwriter and
      agreed to in writing by the Company) (the “Market
      Standoff Period”)
      following the effective date of a registration statement of the Company filed
      under the Securities Act. The Company may impose stop-transfer instructions
      with respect to securities subject to the foregoing restrictions until the
      end
      of such Market Standoff Period.

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    (e) Optionees
      shall not dispose of any Shares in transactions which violate, in the opinion
      of
      the Company, any applicable laws, rules and regulations, including
      without limitation the securities laws of any jurisdiction.
      If any
      Shares shall be registered under the Securities Act, no public offering other
      than in a national securities exchange, as defined in the Exchange Act, of
      any
      Shares shall be made by Optionees or any other person under such circumstances
      that such Optionees or other person may be deemed an underwriter as defined
      in
      the Securities Act.

     

    (f) 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 restrictions, as it may deem appropriate (which do
      not
      violate the Optionees’ rights according to this Plan or the applicable Option
      Agreement).

     

    (g) The
      Company shall not be required (i) to transfer on its books any shares of Common
      Stock that shall have been sold or transferred in violation of any of the
      provisions set forth above or (ii) to treat as owner of such Shares or to accord
      the right to vote as such owner or to pay dividends to any transferee to whom
      such Shares shall have been so transferred.

    
      
        
        

      

      
        -12-ISRAELI
      SHARE OPTION PLAN 

    
      
        

      

    

     

    IXI
      MOBILE, INC.

     

    THE
      2003 ISRAELI STOCK OPTION PLAN

    

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

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      ISRAELI
        SHARE OPTION PLAN

        

      

       

    

    TABLE
      OF CONTENTS

    
      

        
          	
                  1.
                    PURPOSE OF THE ISOP

                	
                  3

                
	 	 
	
                  2.
                    DEFINITIONS

                	
                  3

                
	 	 
	
                  3.
                    ADMINISTRATION OF THE ISOP

                	
                  6

                
	 	 
	
                  4.
                    DESIGNATION OF PARTICIPANTS

                	
                  7

                
	 	 
	
                  5.DESIGNATION
                    OF AWARDS PURSUANT TO SECTION 102

                	
                  8

                
	 	 
	
                  6.TRUSTEE

                	
                  8

                
	 	 
	
                  6A
                    RESTRICTED SHARES

                	9
	 	 
	
                  7.
                    SHARES RESERVED FOR THE ISOP

                	
                  10

                
	 	 
	
                  8.
                    PURCHASE PRICE

                	
                  10

                
	 	 
	
                  9.
                    ADJUSTMENTS

                	
                  11

                
	 	 
	
                  10.
                    TERM OF AWARDS AND EXERCISE OF OPTIONS

                	
                  12

                
	 	 
	
                  11.
                    VESTING OF AWARDS

                	
                  14

                
	 	 
	
                  12.
                    LIMITATIONS AFTER PURCHASE OF SHARES

                	
                  14

                
	 	 
	
                  13.
                    SHARES SUBJECT TO RIGHT OF FIRST REFUSAL

                	
                  15

                
	 	 
	
                  14.
                    PURCHASE FOR INVESTMENT

                	
                  16

                
	 	 
	
                  15.
                    DIVIDENDS

                	
                  16

                
	 	 
	
                  16.
                    RESTRICTIONS ON ASSIGNABILITY AND SALE OF AWARDS

                	
                  16

                
	 	 
	
                  17.
                    EFFECTIVE DATE AND DURATION OF THE ISOP

                	
                  17

                
	 	 
	
                  18.
                    AMENDMENTS OR TERMINATION

                	
                  17

                
	 	 
	
                  19.
                    GOVERNMENT REGULATIONS

                	
                  17

                
	 	 
	
                  20.
                    CONTINUANCE OF EMPLOYMENT

                	
                  18

                
	 	 
	
                  21.
                    GOVERNING LAW & JURISDICTION

                	
                  18

                
	 	 
	
                  22.
                    TAX CONSEQUENCES

                	
                  18

                
	 	 
	
                  23.
                    NON-EXCLUSIVITY OF THE ISOP

                	
                  19

                
	 	 
	
                  24.
                    MULTIPLE AGREEMENTS

                	
                  19

                

        

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      ISRAELI
        SHARE OPTION PLAN 
        
          

        

      

    

     

    
      This
        plan, as amended from time to time, shall be known as the IXI Mobile, Inc.
        2003
        Israeli Stock Option Plan (the “ISOP”).
        

       

      
        	1.	
                PURPOSE
                  OF THE ISOP

              

      

       

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

       

      
        	2.	
                DEFINITIONS

              

      

       

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

       

      
        	 	
                2.1
                  

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

              

      

      

      
        	 	
                2.2

              	
                “Approved
                  102 Award”
                  means an Award granted pursuant to Section 102(b) of the Ordinance.
                  

              

      

      

      
        	 	
                2.3

              	
                "Award"
                  means an Option or Restricted
                  Shares

              

      

      

      
        	 	
                2.4

              	
                "Award
                  Agreement"
                  means a written agreement between the Company and a Participant
                  setting
                  forth the terms under which Awards are granted to a
                  Participant.

              

      

      

      
        	 	
                2.5

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

              

      

      

      
        	 	
                2.6

              	
                “Capital
                  Gain Award (CGA)”
                  means an Approved 102 Award elected and designated by the Company
                  to
                  qualify under the capital gain tax treatment in accordance with
                  the
                  provisions of Section 102(b)(2).

              

      

      

      
        	 	
                2.7

              	
                “Cause”
                  shall have the same meaning as set forth in the Company’s 2000 Second
                  Amended and Restated Stock Incentive Plan.

              

        	 	 	 

      

      
        	 	
                2.8

              	
                “Chairman”
                  means
                  the chairman of the Committee.

              

      

      

      
        	 	
                2.9

              	
                “Committee”
                  means
                  a share option compensation committee appointed by the Board, which
                  shall
                  consist of no fewer than two members of the
                  Board.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

        ISRAELI
          SHARE OPTION PLAN 
          
            

          

        

      

       

      
        	 	
                2.10

              	
                “Company”
                  means IXI Mobile, Inc., a Delaware corporation.

              

      

      

      
        	 	
                2.11

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

              

      

      

      
        	 	
                2.12

              	
                “Date
                  of Grant”
                  means, the date of grant of an Award, as determined by the Board
                  and set
                  forth in the Participant’s Award Agreement.

              

      

      

      
        	 	
                2.13

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

              

      

      

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

              

      

      

      
        	 	
                2.15

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

              

      

      

      (i)
        If
        the Shares are listed on any established stock exchange or a national market
        system, including without limitation the NASDAQ National Market system, or
        the
        NASDAQ SmallCap Market of the NASDAQ Stock Market, the Fair Market Value
        shall
        be the closing sales price for such Shares (or the closing bid, if no sales
        were
        reported), as quoted on such exchange or system for the last market trading
        day
        prior to time of determination, as reported in the Wall Street Journal, or
        such
        other source as the Board deems reliable. Without
        derogating from the above, solely for the purpose of determining the tax
        liability pursuant to Section 102(b)(3) of the Ordinance, if at the Date
        of
        Grant the Company’s shares are listed on any established stock exchange or a
        national market system or if the Company’s shares will be registered for trading
        within ninety (90) days following the Date of Grant, the Fair Market Value
        of a
        Share at the Date of Grant
        shall be determined in accordance with the average value of the Company’s shares
        on the thirty (30) trading days preceding the Date of Grant or on the thirty
        (30) trading days following the date of registration for trading, as the
        case
        may be;

       

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

       

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

       

      
        	 	
                2.16

              	
                “IPO”
                  means the initial public offering of the Company’s Common
                  Stock.

              

      

      

      
        	 	
                2.175

              	
                “ISOP”
                  means this 2003 Israeli Stock Option
                  Plan.

              

      

      

      
        	 	
                2.18

              	
                “ITA”
                  means
                  the Israeli Tax Authorities.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        ISRAELI
          SHARE OPTION PLAN 
          
            

          

           

        

      

      
        	 	
                2.19

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

              

      

       

      
        	 	
                2.20

              	
                “Ordinary
                  Income Award (OIA)”
                  means an Approved 102 Award elected and designated by the Company
                  to
                  qualify under the ordinary income tax treatment in accordance with
                  the
                  provisions of Section 102(b)(1).

              

      

      

      
        	 	
                2.21

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

              

      

      

      
        	 	
                2.22

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

              

      

      

      
        	 	
                2.23

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

              

      

      

      
        	 	
                2.24

              	
                “Participant”
                  means a person who receives or holds an Option or Restricted Shares
                  under
                  the ISOP.

              

      

      

      
        	 	
                2.25

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

              

      

      

      
        	 	
                2.26

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

              

      

      

      
        	 	
                2.27

              	
                "Restricted
                  Shares"
                  means a grant of a Share subject to restrictions, to a Participant,
                  subject to the provisions of this Plan and the applicable Award
                  Agreement.

              

      

      

      
        	 	
                2.28

              	
                “Section
                  102” means
                  section 102 of the Ordinance as now in effect or as hereafter amended
                  and
                  regulations promulgated thereunder.

              

      

      

      
        	 	
                2.29

              	
                “Share”
                  means the Common Stock, $ 0.01 par value each, of the
                  Company.

              

      

      

      
        	 	
                2.30

              	
                “Successor
                  Company” means
                  any entity the Company is merged with or into or is acquired by,
                  in any
                  Transaction.

              

      

      

      
        	 	
                2.31

              	
                “Transaction”
                  means
                  (a) the consummation of the merger or acquisition of the Company
                  with,
                  into or by another entity, in which there is a Change of Control,
                  (ii) the
                  sale, transfer, or other disposition of all or substantially all
                  of the
                  Company’s assets or shares, (iii) the exclusive, irrevocable
                  licensing of all or substantially all of the Company’s intellectual
                  property to a third party; or (v) the reorganization or other
                  transaction (other than an equity investment in the Company)
                  in which there is a Change of Control.
                  A
                  “Change of Control” means any transaction or series of transactions in
                  which the holders of share capital of the Company immediately prior
                  to
                  such transaction or series of transactions do not continue to hold,
                  directly or indirectly, at least a majority of the voting power
                  of the
                  share capital of the Company or the surviving or acquiring entity.
                  

              

      

      
         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        
           

        

        ISRAELI
          SHARE OPTION PLAN 
          
            

          

        

         

      

      
        	 	
                2.32

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

              

      

       

      
        	 	
                2.33

              	
                “Unapproved
                  102 Award”
                  means an Award granted pursuant to Section 102(c) of the Ordinance.
                  

              

      

      

      
        	 	
                2.34

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

              

      

      

      
        	 	
                2.35

              	
                “Vesting
                  Dates”
                  means, as determined by the Board or by the Committee, the date
                  as of
                  which the Award is exercisable or is otherwise considered
                  earned.

              

      

      

      
        	3.	
                ADMINISTRATION
                  OF THE ISOP

              

      

       

      
        	 	
                3.1

              	
                The
                  Board or the Committee shall have the power to administer the ISOP,
                  all as
                  provided by applicable law and in the Company’s incorporation documents.
                  Notwithstanding the above, the Board shall automatically have residual
                  authority if no Committee shall be constituted, if such Committee
                  members
                  are not available for any reason or if such Committee shall cease
                  to
                  operate for any reason.

              

      

       

      
        	 	
                3.2

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

              

      

       

      
        	 	
                3.3

              	
                The
                  Board or the Committee shall have the full power and authority,
                  in the
                  case of the Committee subject to the approval of the Board to the
                  extent
                  required under applicable law or under the Company’s incorporation
                  documents to: (i) designate Participants; (ii) determine the terms
                  and
                  provisions of the respective Award Agreements, including, but not
                  limited
                  to, the number of Awards to be granted to each Participant, the
                  number of
                  Shares to be covered by each Award, provisions concerning the time
                  and the
                  extent to which the Awards may be exercised or otherwise earned
                  and the
                  nature and duration of restrictions as to the transferability or
                  restrictions constituting substantial risk of forfeiture and to
                  cancel or
                  suspend Awards, as necessary; (iii) determine the Fair Market Value
                  of the
                  Shares covered by each Award; (iv) make an election as to the type
                  of 102
                  Approved Award; (v) designate the type of Awards; (vi) alter any
                  restrictions and conditions of any Awards or Shares subject to
                  any Awards
                  (vii) interpret the provisions and supervise the administration
                  of the
                  ISOP; (viii) accelerate the right of a Participant to exercise
                  or
                  otherwise earned in whole or in part, any previously granted Award;
                  (ix)
                  determine the Purchase Price of an Option; (x) prescribe, amend
                  and
                  rescind rules and regulations relating to the ISOP; and (xi) make
                  all
                  other determinations deemed necessary or advisable for the administration
                  of the ISOP.

              

      

      
         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        

          ISRAELI
            SHARE OPTION PLAN 
            
              

            

          

        

         

      

      
        	 	
                3.4

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

              

      

       

      
        	 	
                3.5

              	
                Subject
                  to the Company’s incorporation documents, all decisions and selections
                  made by the Board or the Committee pursuant to the provisions of
                  the ISOP
                  shall be made by a majority of its members except that no member
                  of the
                  Board or the Committee shall vote on, or be counted for quorum
                  purposes,
                  with respect to any proposed action of the Board or the Committee
                  relating
                  to any Award to be granted to that member. Any decision reduced
                  to writing
                  shall be executed in accordance with the provisions of the Company’s
                  incorporation documents, as the same may be in effect from time
                  to
                  time.

              

      

       

      
        	 	
                3.6

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

              

      

       

      
        	 	
                3.7

              	
                Subject
                  to the Company’s incorporation documents and the Company’s decision, and
                  to all approvals legally required, including, but not limited to
                  the
                  provisions of the incorporation documents, each member of the Board
                  or the
                  Committee shall be indemnified and held harmless by the Company
                  against
                  any cost or expense (including counsel fees) reasonably incurred
                  by him,
                  or any liability (including any sum paid in settlement of a claim
                  with the
                  approval of the Company) arising out of any act or omission to
                  act in
                  connection with the ISOP unless arising out of such member's own
                  fraud or
                  bad faith, to the extent permitted by applicable law. Such indemnification
                  shall be in addition to any rights of indemnification the member
                  may have
                  as a director or otherwise under the Company's Incorporation documents,
                  any agreement, any vote of shareholders or disinterested directors,
                  insurance policy or otherwise.

              

      

       

      
        	4.	
                DESIGNATION
                  OF PARTICIPANTS

              

      

       

      
        	 	
                4.1

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

              

      

       

      
        	 	
                4.2

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

              

      

       

      
        	 	
                4.3

              	
                Anything
                  in the ISOP to the contrary notwithstanding, all grants of Awards
                  to
                  directors and office holders shall be authorized and implemented
                  in
                  accordance with the provisions of the incorporation documents or
                  any
                  applicable law, as in effect from time to
                  time.

              

      

      
         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        
          ISRAELI
            SHARE OPTION PLAN 
            
              

            

          

        

         

      

      
        	5.	
                DESIGNATION
                  OF AWARDS PURSUANT TO SECTION
                  102

              

      

       

      
        	 	
                5.1

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

              

      

      

      
        	 	
                5.2

              	
                The
                  grant of Approved 102 Awards shall be made under this ISOP adopted
                  by the
                  Board as described in Section 16 below, and shall be conditioned
                  upon the
                  approval of this ISOP by the ITA.

              

      

       

      
        	 	
                5.3
                  

              	
                Approved
                  102 Awards may either be classified as Capital Gain Awards or Ordinary
                  Income Awards.

              

      

      

      
        	 	
                5.4

              	
                No
                  Approved 102 Award may be granted under the ISOP to any eligible
                  Employee,
                  unless and until, the Company’s election of the type of Approved 102
                  Awards as CGAs or as OIAs that will be granted to Employees (the
                  “Election”), is appropriately filed with the ITA. Such Election shall
                  become effective beginning the first Date of Grant of an Approved
                  102
                  Award under this ISOP and shall remain in effect until the end
                  of the year
                  following the year in which the Company first granted Approved
                  102 Awards.
                  The Election shall obligate the Company to grant only the type
                  of Approved
                  102 Awards it has elected, and shall apply to all Participants
                  who were
                  granted Approved 102 Awards during the period indicated herein,
                  all in
                  accordance with the provisions of Section 102(g) of the Ordinance.
                  For the
                  avoidance of doubt, such Election shall not prevent the Company
                  from
                  granting Unapproved 102 Awards or 3(i) Awards
                  simultaneously.

              

      

      

      
        	 	
                5.5

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

              

      

      

      
        	 	
                5.6

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

              

      

       

      
        	6.	
                TRUSTEE

              

      

       

      
        	
              	6.1	
                Approved
                  102 Awards which shall be granted under the ISOP, any Shares issued
                  pursuant to any Approved 102 Awards for Restricted Shares and/or
                  any
                  Shares allocated or issued upon exercise of Approved 102 Awards
                  that are
                  Options (as applicable) and/or other shares received subsequently
                  following any realization of rights, shall be allocated or issued
                  to the
                  Trustee and held for the benefit of the Participants for such period
                  of
                  time as required by Section 102. In the case the requirements for
                  Approved
                  102 Awards are not met, then the Approved 102 Awards shall be treated
                  as
                  Unapproved 102 Awards, all in accordance with the provisions of
                  Section
                  102.   

              

      

      
         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        

          ISRAELI
            SHARE OPTION PLAN 
            
              

            

          

        

         

      

      
        	 	
                6.2
                  

              	
                Notwithstanding
                  anything to the contrary, the Trustee shall not release any Shares
                  issued
                  pursuant to any Approved 102 Awards for Restricted Shares and/or
                  any
                  Shares allocated or issued upon exercise of Approved 102 Awards
                  that are
                  Options (as applicable) prior to the full payment of the Participant’s tax
                  liabilities arising from Approved 102 Awards which were granted
                  to him,
                  the Shares issued pursuant to any such Approved 102 Awards for
                  Restricted
                  Shares and/or any Shares allocated or issued upon exercise of such
                  Awards
                  that are Options (as applicable). 

              

      

       

      
        	 	
                6.3
                  

              	
                Upon
                  receipt of Approved 102 Awards, the Participant will sign an undertaking
                  to release the Trustee from any liability in respect of any action
                  or
                  decision duly taken and bona fide executed in relation with the
                  ISOP, any
                  Approved 102 Award or Restricted Shares or other Shares granted
                  to him
                  thereunder. 

              

      

       

      
        	6A.	
                RESTRICTED
                  SHARES

              

      

       

      
        	 	
                6A.1

              	
                The
                  Board shall offer from time to time to Participants, Restricted
                  Shares on
                  a personal basis. The Restricted Shares granted pursuant to the
                  ISOP,
                  shall be evidenced by a written Award Agreement between the Company
                  and
                  the Participant, in such form as the Board shall from time to time
                  approve. Each Award Agreement shall state, among other matters,
                  the number
                  of Restricted Shares granted, the Vesting Dates, the purchase price
                  if any
                  and such other terms and conditions as the Board in its discretion
                  may
                  prescribe, provided that they are consistent with this
                  ISOP.

              

      

       

      
        	 	
                6A.2

              	
                Upon
                  his/her acceptance of the Award, and within 30 days of the grant,
                  the
                  Participant shall return the signed Award Agreement to the Company
                  along
                  with any purchase price if
                  required.

              

      

       

      
        	 	
                6A.3

              	
                The
                  actual issuance of the Restricted Shares shall be subject to the
                  payment
                  by the Participant of any applicable
                  Tax.

              

      

       

      
        	 	
                6A.4

              	
                Restricted
                  Shares granted pursuant to Section 102 of the Ordinance (an Approved
                  102
                  Award, as determined in the Award Agreement), shall be subject
                  to the
                  Trustee’s trusteeship, as provided in Section 6 above, and to the
                  submission of the ISOP for approval by the Israeli Tax
                  Authority.

              

      

       

      
        	 	
                6A.5

              	
                The
                  Board in its discretion shall set vesting criteria and restrictions,
                  if
                  any, on the earning of the Restricted Shares. The Board may set
                  vesting
                  criteria and restrictions based upon the achievement of Company-wide,
                  business unit, or individual goals (including, but not limited
                  to,
                  continued employment), or any other basis determined by the Board
                  in its
                  discretion. The vesting conditions and schedule shall be set in
                  the
                  applicable Award Agreement. Until the Vesting Date the Restricted
                  Share
                  certificates issued in respect of the Restricted Shares shall be
                  held
                  either in escrow by an escrow agent appointed by the Company or
                  by the
                  Trustee. Prior to the achievement of the vesting criteria and the
                  lapse of
                  restrictions, the Restricted Shares issued under the Award Agreement
                  shall
                  be subject to the Company's repurchase right as further determined
                  in the
                  Award Agreement.

              

      

      
         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

        
          ISRAELI
            SHARE OPTION PLAN  
            

          

        

         

      

      
        	 	
                6A.6

              	
                Any
                  certificates representing the Restricted Shares awarded shall bear
                  such
                  legends as shall be determined by the
                  Board.

              

      

       

      
        	
              	6A.7	
                Upon
                  the Termination of the Participant's employment or engagement with
                  the
                  Company, the Participant shall forfeit any Restricted Shares which
                  are
                  still subject to restrictions. Any unvested Restricted Shares shall
                  be
                  subject to the Company's repurchase right in consideration for
                  the payment
                  of the purchase price if paid by the Participant and subject further
                  to
                  the terms of the Award
                  Agreement.

              

      

    

     

    
      	7.	
              SHARES
                RESERVED FOR THE ISOP; RESTRICTION
                THEREON

            

    

     

    
      
        	
              	7.1	
                The
                  Company has reserved Five Hundred and Fifty Nine Thousand Seven
                  Hundred
                  and Seventy Five (559,775)
                  authorized but unissued Shares, for the purposes of the ISOP and
                  for the
                  purposes of any other existing stock option plans or other stock
                  option
                  plans which may be adopted by the Company in the future, subject
                  to
                  adjustment as set forth in Section 9 below. Any Shares which remain
                  unissued and which are not subject to the outstanding Awards at
                  the
                  termination of the ISOP shall cease to be reserved for the purpose
                  of the
                  ISOP, but until termination of the ISOP the Company shall at all
                  times
                  reserve sufficient number of Shares to meet the requirements of
                  the ISOP.
                  Should any Award for any reason expire or be canceled prior to
                  its
                  exercise, earn-out or relinquishment in full (as applicable), the
                  Shares
                  subject to such Award may again be subjected to an Award under
                  the ISOP or
                  under the Company’s other share option
                  plans.

              

      

    

     

    
      	
            	7.2	
              Each
                Award granted pursuant to the ISOP, shall be evidenced by a written
                Award
                Agreement between the Company and the Participant, in such form as
                the
                Board or the Committee shall from time to time approve. Each Award
                Agreement shall state, inter alia, the number of Shares to which
                the Award
                relates, the type of Award granted (whether a CGA, OIA, Unapproved
                102
                Award or a 3(i) Award), the Vesting Dates, the Purchase Price (if
                the
                Award is an Option), the Expiration Date and such other terms and
                conditions as the Committee or the Board in its discretion may prescribe,
                provided that they are consistent with this ISOP.
                

            

    

     

    
      	8.	
              PURCHASE
                PRICE
                OF OPTIONS

            

    

     

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

            

    

     

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

            

    

    
       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      ISRAELI
        SHARE OPTION PLAN
        

      

       

    

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

                

        

      

    

     

    
      	9.	
              ADJUSTMENTS

            

    

     

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

     

    
      	
            	9.1	
              In
                the event of a Transaction, any unexercised Vested Awards and any
                unvested
                Awards then outstanding under the ISOP shall be assumed or substituted
                for
                an appropriate number of shares of each class of stock or other securities
                of the Successor Company (or a parent or subsidiary of the Successor
                Company) as were distributed to the shareholders of the Company in
                connection and with respect to the Transaction. In the case of such
                assumption and/or substitution of Awards, appropriate adjustments
                shall be
                made to the Purchase Price so as to reflect such action and all other
                terms and conditions of the Award Agreements shall remain unchanged,
                including but not limited to the vesting schedule, all subject to
                the
                determination of the Committee or the Board, which determination
                shall be
                in their sole discretion and final.
                The Company shall notify the Participant of the Transaction in such
                form
                and method as it deems applicable at least ten (10) days prior to
                the
                effective date of such Transaction.

            

    

     

    
      	
            	9.2	
              Notwithstanding
                the above and subject to any applicable law, the Board or the Committee
                shall have full power and authority to determine that in certain
                Award
                Agreements there shall be a clause instructing that, if in any such
                Transaction as described in section 9.1 above, the Successor Company
                (or
                parent or subsidiary of the Successor Company) does not agree to
                assume or
                substitute for the Awards, the
                Vesting Dates shall be accelerated so that any unvested Award or
                any
                portion thereof shall be immediately vested as of the date which
                is ten
                (10) days prior to the effective date of the
                Transaction.

            

    

     

    
      	
            	9.3	
              For
                the purposes of section 9.1 above, an Award shall be considered assumed
                or
                substituted if, following the Transaction, the Award confers the
                right to
                purchase or receive, for each Share underlying an Award immediately
                prior
                to the Transaction, the consideration (whether shares, options, cash,
                or
                other securities or property) received in the Transaction by holders
                of
                shares held on the effective date of the Transaction (and if such
                holders
                were offered a choice of consideration, the type of consideration
                chosen
                by the holders of a majority of the outstanding shares); provided,
                however, that if such consideration received in the Transaction is
                not
                solely common stock (or their equivalent) of the Successor Company
                or its
                parent or subsidiary, the Committee may, with the consent of the
                Successor
                Company, provide for the consideration received in the Transaction
                to be
                solely common stock (or their equivalent) of the Successor Company
                or its
                parent or subsidiary equal in Fair Market Value to the per Share
                consideration received by holders of a majority of the outstanding
                Common
                Stock in the Transaction; and provided further that the Committee
                may
                determine, in its discretion, that in lieu of such assumption or
                substitution of Awards for options or other securities of the Successor
                Company or its parent or subsidiary, such Awards will be substituted
                for
                any other type of asset or property including cash which is fair
                under the
                circumstances.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    ISRAELI
      SHARE OPTION PLAN
      

    

     

    
      	
            	9.4	
              If
                the Company is liquidated or dissolved while unexercised Options
                or
                unvested Awards remain outstanding under the ISOP, then the Board
                in its
                own discretion may determine that all such outstanding Options and
                /or
                Awards may be exercised or earned in full (as applicable) by the
                Participants as of the effective date of any such liquidation or
                dissolution of the Company without regard to the Vesting Dates (as
                defined
                below) thereof. If the Board determines that outstanding unexercised
                Options may be exercised, all such outstanding Options may be exercised
                in
                full by the Participants giving notice in writing to the Company
                of their
                intention to so exercise together with payment of the Purchase
                Price.

            

    

     

    
      	
            	9.5	
              If
                the outstanding shares of the Company shall at any time be changed
                or
                exchanged by declaration of a share dividend (bonus shares), share
                split,
                combination or exchange of shares, recapitalization, or any other
                like
                event by or of the Company, and as often as the same shall occur,
                then the
                number, class and kind of the Shares subject to the ISOP or subject
                to any
                Awards therefore granted, and the Purchase Prices of Options, shall
                be
                appropriately and equitably adjusted so as to maintain a proportionate
                number of Shares, provided, however, that no adjustment shall be
                made by
                reason of the distribution of subscription rights (rights offering)
                on
                outstanding shares. Upon happening of any of the foregoing, the class
                and
                aggregate number of Shares issuable pursuant to the ISOP (as set
                forth in
                Section 7 hereof), in respect of which Awards have not yet been exercised
                or earned (as applicable), shall be appropriately adjusted, all as
                will be
                determined by the Board whose determination shall be final.

            

    

    

    
      	
            	9.6	
              Anything
                herein to the contrary notwithstanding, if prior to the completion
                of the
                IPO all or substantially all of the shares of the Company are to
                be sold,
                or in case of a Transaction, all or substantially all of the shares
                of the
                Company are to be exchanged for securities of another Company, then
                each
                Participant shall be obliged to sell or exchange, as the case may
                be, any
                Shares such Participant purchased under the ISOP, in accordance with
                the
                instructions issued by the Board in connection with the Transaction,
                whose
                determination shall be final.

            

    

     

    
      	
            	9.7	
              The
                Participant acknowledges that in the event that the Company’s shares shall
                be registered for trading in any public market, Participant’s rights to
                sell the Shares may be subject to certain limitations (including
                a lock-up
                period), as will be requested by the Company or its underwriters,
                and the
                Participant unconditionally agrees and accepts any such
                limitations.

            

    

     

    
      	10.	
              TERM
                OF AWARDS AND EXERCISE
                OF OPTIONS

            

    

     

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

            

    

     

    
      
        
        

      

      
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    ISRAELI
      SHARE OPTION PLAN
      

    

     

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

            

    

     

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

            

    

     

    
      	
            	10.4	
              Subject
                to the provisions of section 10.5 below, in the event of termination
                of
                Participant’s employment or services, with the Company or any of its
                Affiliates, all Options granted to such Participant will immediately
                expire. A notice of termination of employment or service shall be
                deemed
                to constitute termination of employment or service.
                For the avoidance of doubt, in case of such termination of employment
                or
                service, the unvested portion of the Participant’s Option shall not vest
                and shall not become exercisable.

            

    

     

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

            

    

     

    
      	 	
              (i)

            	
              termination
                is without Cause, in which event any then-vested Shares under any
                Option
                that is still in force and unexpired may be exercised within thirty
                (30)
                days of termination, or such longer period of time as specified in
                the
                Award Agreement; or-

            

    

    

    
      	
            	(ii)	
              termination
                is the result of death or disability of the Participant, in which
                event
                any Shares that are then-vested under any Option that is still in
                force
                and unexpired may be exercised within six (6) months of termination,
                or
                such longer period of time as specified in the Award Agreement; or
                -

            

    

     

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

            

    

    
       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      ISRAELI
        SHARE OPTION PLAN
        

      

       

    

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

     

    
      	
            	10.6	
              To
                avoid doubt, the holders of Options shall not be deemed owners of
                the
                Shares issuable upon the exercise of Options and shall not have any
                of the
                rights or privileges of shareholders of the Company in respect of
                any
                Shares purchasable upon the exercise of any part of an Option, until
                registration of the Participant as holder of such Shares in the Company’s
                register of shareholders upon exercise of the Option in accordance
                with
                the provisions of the ISOP

            

    

    

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

            

    

     

    
      	11.	
              VESTING
                OF AWARDS

            

    

     

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

            

    

    

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

            

    

     

    
      	12.	
              LIMITATIONS
                AFTER PURCHASE OF SHARES

            

    

     

    
      
        
          	
                	12.1	
                  Once
                    the Company's shares will be traded in any public market, the
                    Participant’s right to sell his/her Shares may be subject to certain
                    limitations, as set forth by the Company or its underwriters.
                    In such
                    event, the Participant will unconditionally agree to any such
                    limitations.

                

        

      

    

     

    
      
        
          	
                	12.2	
                  The
                    Participant may be required by the Company, at the Company’s discretion,
                    to give a declaration in writing upon exercising an Option or
                    being
                    granted an Award, that the Participant is acquiring the Shares
                    for his or
                    her own account, not as a nominee or agent, for investment and
                    not with a
                    view to, resale in connection with any distribution of such
                    Shares.

                

        

      

    

     

    
      	
            	12.3	
              The
                Participant shall not dispose of any Shares in transactions that
                violate,
                in the opinion of the Company, any applicable laws, rules or regulations
                or the Company’s certification of incorporation and
                bylaws.

            

    

     

    
      	
            	12.4	
              If
                any Shares shall be registered under the United States Securities
                Act of
                1933, no public offering otherwise than through a national securities
                exchange (as defined in the United States Securities Exchange Act
                of 1934,
                as amended) of any Shares shall be made by the Participant (or any
                other
                person) under such circumstances that he or she (or such other person)
                may
                be deemed an underwriter, as defined in the United States Securities
                Act
                of 1933. 

            

    

     

    
      
        
        

      

      
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    ISRAELI
      SHARE OPTION PLAN
      

    

     

    
      	
            	12.5	
              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 restrictions, as
                it may
                deem appropriate (which do not violate the Participant's rights according
                to this Agreement).

            

    

     

    
      	13.	
              SHARES
                SUBJECT TO RIGHT OF FIRST
                REFUSAL

            

    

     

    
      	
            	13.1	
              Notwithstanding
                anything to the contrary in the incorporation documents of the Company,
                none of the Participants shall have a right of first refusal in relation
                with any sale of shares in the
                Company.

            

    

     

    
      	
            	13.2	
              Sale
                of Shares by the Participant shall be subject to the right of first
                refusal of other shareholders as set forth in the Certificate of
                Incorporation and/or Bylawas of the Company. In the event that the
                Certificate of Incorporation and Bylaws of the Company shall not
                contain
                any provision regarding rights of first refusal, then, unless otherwise
                provided by the Board, until such time as the Company shall effectuate
                an
                IPO, the sale of Shares issuable upon exercise of an Option or grant
                of an
                Award for Restricted Shares, shall be subject to a right of first
                refusal
                on the part of such other shareholders as set forth in the Certificate
                of
                Incorporation or Bylaws (the “Repurchasers”), including the procedures for
                such right of first refusal as set forth therein.. The Repurchaser
                cannot
                exercise the Right of first refusal less than 6 months following
                the later
                of the exercise of an Option or the issuance of shares. The Participant
                shall not sell shares during such six-month period The Participant
                shall
                give a notice of sale (the “Sale
                Notice“)
                to the Company in order to offer the Shares to the Repurchaser(s),
                and the
                Company will forward the Sale Notice to the existing shareholders.
                

            

    

     

    The
      Sale
      Notice shall specify the number of Shares offered for sale, the price per Share,
      the payment terms the name of each proposed purchaser or other Transferee
      (“Proposed Transferee”).
      The
      Repurchaser(s) will be entitled to purchase all or part of the offered Shares
      during the period of 30 days from the day of receipt of the Notice (the
“30
      Days Period”).
      If
      the Repurchasers are the existing shareholders then those of the existing
      shareholders who wish to purchase the Shares may, in the event
      that not all existing shareholders accept their pro rata share, purchase more
      shares than their the pro rata share. If by the end of the 30 Days Period not
      all of the offered Shares have been purchased by the Repurchaser(s), the
      Participant will be entitled to sell such Shares at any time during the 90
      days
      following the end of the 30 Days Period on terms not more favorable than those
      set out in the Sale Notice, provided that the proposed Transferee agrees in
      writing that the provisions of this Section 13 shall continue to apply to the
      Shares in the hands of such proposed Transferee.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ISRAELI
      SHARE OPTION PLAN
      

    

     

    
      	14.	
              PURCHASE
                FOR INVESTMENT

            

    

     

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

     

    
      	15.	
              DIVIDENDS

            

    

     

    
      	
            	15.1	
              With
                respect to all Shares (but excluding, for avoidance of any doubt,
                any
                unexercised Options) allocated or issued upon the exercise of Options
                or
                otherwise issued upon grant of Awards purchased by the Participant
                and
                held by the Participant or by the Trustee, as the case may be, the
                Participant shall be entitled to receive dividends in accordance
                with the
                quantity of such Shares, subject to the provisions of the Company’s
                Incorporation documents (and all amendments thereto) and subject
                to any
                applicable taxation on distribution of
                dividends.

            

    

     

    
      	
            	15.2	
              During
                the period in which Shares are held by the Trustee on behalf of the
                Participant, the cash dividends paid with respect thereto shall be
                paid
                directly to the Participant.

            

    

     

    
      	16.	
              RESTRICTIONS
                ON ASSIGNABILITY AND SALE OF
                AWARDS

            

    

     

    
      	
            	16.1	
              No
                Award or any right with respect thereto, purchasable hereunder, whether
                fully paid or not, shall be assignable, transferable or given as
                collateral or any right with respect to it given to any third party
                whatsoever, except as specifically allowed under the ISOP, and during
                the
                lifetime of the Participant each and all of such Participant's rights
                to
                purchase Shares hereunder shall be exercisable only by the
                Participant.

            

    

     

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

    
       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      ISRAELI
        SHARE OPTION PLAN
        

      

       

    

    
      	
            	16.2	
              As
                long as Awards and/or Shares are held by the Trustee on behalf of
                the
                Participant, all rights of the Participant over the Shares are personal,
                can not be transferred, assigned, pledged or mortgaged, other than
                by will
                or pursuant to the laws of descent and distribution.
                

            

    

     

    
      
        
          	
                	16.3	
                  In
                    no event shall any Shares purchased upon exercise of any Option
                    or
                    otherwise issued upon grant of any Award (whether held by the
                    Trustee on
                    behalf of the Participant or not) be sold, given away, assigned,
                    pledged,
                    hypothecated, disposed of or otherwise transferred (i) to a competitor
                    of
                    the Company or an Affiliate, (ii) if such transfer would result
                    in any
                    incremental tax to the Company, its stockholders or an Affiliate,
                    or (iii)
                    if the Board of Directors believes in good faith such transfer
                    may
                    adversely affect the Company or an
                    Affiliate.

                

        

      

    

     

    
      	17.	
              EFFECTIVE
                DATE AND DURATION OF THE
                ISOP

            

    

     

    The
      ISOP
      shall be effective as of the day it was adopted by the Board and shall terminate
      at the end of ten (10) years from such day of adoption.

     

    
      	18.	
              AMENDMENTS
                OR TERMINATION

            

    

     

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

     

    
      	19.	
              GOVERNMENT
                REGULATIONS

            

    

     

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

    
       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      ISRAELI
        SHARE OPTION PLAN
        

      

       

    

    
      	20.	
              CONTINUANCE
                OF EMPLOYMENT OR HIRED
                SERVICES

            

    

     

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

     

    
      	21.	
              GOVERNING
                LAW & JURISDICTION

            

    

     

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

     

    
      	22.	
              TAX
                CONSEQUENCES

            

    

     

    
      	
            	22.1	
              Any
                tax consequences arising from the grant or exercise of any Award,
                from the
                payment for Shares covered thereby or from any other event or act
                (of the
                Company and/or its Affiliates, the Trustee or the Participant), hereunder,
                shall be borne solely by the Participant. The Company and/or its
                Affiliates and/or the Trustee shall withhold taxes according to the
                requirements under the applicable laws, rules, and regulations, including
                withholding taxes at source. Furthermore, the Participant shall agree
                to
                indemnify the Company and/or its Affiliates and/or the Trustee and
                hold
                them harmless against and from any and all liability for any such
                tax or
                interest or penalty thereon, including without limitation, liabilities
                relating to the necessity to withhold, or to have withheld, any such
                tax
                from any payment made to the
                Participant.

            

    

    

    
      	
            	22.2	
              The
                Company and/or, when applicable, the Trustee shall not be required
                to
                release any Share certificate to an Participant until all required
                payments have been fully made.

            

    

    

    
      	
            	22.3	
              To
                the extent provided by the terms of an Award Agreement, the Participant
                may satisfy any tax withholding obligation relating to the exercise
                or
                acquisition of Shares under an Award by any of the following means
                (in
                addition to the Company’s right to withhold from any compensation paid to
                the Participant by the Company) or by a combination of such means:
                (i)
                tendering a cash payment; (ii) subject to the Committee’s approval on the
                payment date, authorizing the Company to withhold Shares from the
                Shares
                otherwise issuable to the Participant as a result of the exercise
                or
                acquisition of Shares under the Award in an amount not to exceed
                the
                minimum amount of tax required to be withheld by law; or (iii) subject
                to
                Committee approval on the payment date, delivering to the Company
                owned
                and unencumbered Shares; provided that Shares acquired on exercise
                of
                Options have been held for at least 6 months from the date of
                exercise.

            

    

    
       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        ISRAELI
          SHARE OPTION PLAN
          

        

         

      

    

    
      	23.	
              NON-EXCLUSIVITY
                OF THE ISOP

            

    

     

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

     

    For
      the
      avoidance of doubt, prior grant of Awards to Participants of the Company under
      their employment agreements, and not in the framework of any previous option
      plan, shall not be deemed an approved incentive arrangement for the purpose
      of
      this Section.

     

    
      	24.	
              MULTIPLE
                AGREEMENTS

            

    

     

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

     

    
      
        
        

      

      
        19

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