Document:

Exhibit 4.3

 

Alcobra Ltd.

 

The Amended and Restated 2010
Incentive Option Plan

 

		1.	PURPOSE
OF THE PLAN

 

The purpose of this
2010 Amended and Restated Incentive Option Plan (the “Plan”) is to advance the interests of Alcobra Ltd.
(the “Company”) and its shareholders by attracting and retaining the best available personnel for positions
of substantial responsibility, providing additional incentive to employees, office holders and service providers and promoting
a close identity of interests between those individuals and entities and the Company.

 

		2.	DEFINITIONS

 

As used herein,
the following definitions shall apply:

 

		2.1.	"Administrator"
means the Board or the Committee, as shall administer the Plan, as set forth herein.

 

	 	2.2.	“Articles” mean the Company’s Articles of Association, as amended from time to time.

 

	 	2.3.	"Board" means the Board of Directors of the Company.

 

	 	2.4.	"Committee" means the Company’s compensation committee, or in the case there is no such committee, a committee appointed in order to administer the Plan, and until such committee is appointed, the Board.

 

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

 

	 	2.6.	"Employee" means: (I) any person, employed by the Company or employed by any Related Entity; and (II) any Office Holder (as such term is defined in the Companies Law), officer or Director of the Company or a Related Entity.

 

	 	2.7.	“Exercise Price” means the price that is to be paid in order to exercise an Option.

 

	 	2.8.	“Group” means the Company and the Related Entities taken together.

 

	 	2.9.	“IPO” means an initial public offering of the Company's Shares.

 

	 	2.10.	"Option" means an option to purchase a Share according to the provisions of this Plan.

 

	 	2.11.	“Option Grant” means a single grant of Options to a certain Participant as determined by the Board or the Committee.

 

	 	2.12.	"Option Grant Letter Agreement" means the notice letter attached to this Plan as Exhibit A.

 

	 	2.13.	"Participant" means a person or entity that has been granted Options.

 

	 	2.14.	“Related Entity” means any parent or subsidiary of the Company. In addition, Related Entity shall include any business, corporation, partnership, limited liability company or other entity in which the Company, or the Company’s parent or a subsidiary holds a substantial ownership and/or interest, directly or indirectly, and is determined by the Board to be a Related Entity.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	2.15.	“Service Provider” means a person or entity who is engaged by the Company or any Related Entity to render services (e.g., consulting services, advisory services, development services, marketing and sale services or any other services, including suppliers) to the Company or a Related Entity.

 

	 	2.16.	"Share" means the Company’s Ordinary Share of NIS 0.01 par value, or that was issued following an exercise of an Option.

 

	 	2.17.	“Total Option Amount” means the amount of Options granted to a Participant in a single Option Grant.

 

	 	3.	ADMINISTRATION OF THE PLAN

 

	 	3.1.	Subject to the provisions of the Plan, any applicable law, the Articles and any other binding commitments taken by the Company, the Board or the Committee shall have the power and authority to administer the Plan. Such power and authority shall include, but not be limited to: (i) approval of Option Grants and the determination of the terms and provisions of respective Option Grants, including, the vesting schedules of the Options; the Exercise Price thereof; provisions concerning the time or times when and the extent to which Options may be exercised; the nature and duration of restrictions as to transferability; or any other special conditions relating to an Option Grant; (ii) the acceleration of any Participant’s right to exercise Options, in whole or in part; (iii) the interpretation of the provisions of the Plan; (iv) altering, amending or rescinding any resolution or act previously taken by the Committee; and (v) the determination of any other matter which is necessary or desirable for, or incidental to, the administration of the Plan, as set forth in the Plan.

 

	 	3.2.	Notwithstanding the above, the Board shall have the power and authority to take any act the Committee is empowered and authorized to take, and to alter amend or rescind any act or resolution taken by the Committee.

  

	 	3.3.	The Committee shall consist of such number of directors as may be appointed by the Board.

 

	 	3.4.	The Board shall have the exclusive discretion and power to grant Options. Such power may be delegated by the Board to the Committee subject to the provisions of the Companies Law.

 

	 	3.5.	All Committee resolutions and decisions, including the interpretation and construction of any provision of the Plan, shall be final and conclusive unless otherwise determined by the Board.

 

	 	3.6.	No member of the Board or of the Committee shall be held liable for any act or determination made in good faith with respect to the Plan or any Option Grant.

 

	 	4.	SHARES RESERVED FOR THE PLAN

 

	 	4.1.	Subject
    to adjustments, as set forth in Section 9 below, a total of 4,487,334 Ordinary Shares, of NIS 0.01 par value each, from
    the Company’s authorized share capital shall be reserved and subject to the Plan (the “Reserved
    Shares”).

 

	 	4.2.	Until termination of the Plan the Company shall at all times reserve sufficient number of Ordinary Shares in its authorized share capital to cover for all Reserved Shares that were not issued.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

  

	 	4.3.	Without derogating from Section 4.2 above:

 

	 	4.3.1.	The Company need not reserve Shares with respect to Options that terminated, expired or were canceled for any reason prior to exercise thereof.

 

	 	4.3.2.	In the case that there are certain Reserved Shares, which remain unissued and which are not subject to outstanding Options, then the Board may resolve that such Reserved Shares shall cease to be reserved.

 

	 	5.	DESIGNATION OF PARTICIPANTS; OPTION GRANTS

 

	 	5.1.	The Board may grant Option Grants to the following persons and entities:

 

	 	5.1.1.	Employees.

 

	 	5.1.2.	Service Providers and their employees.

 

	 	5.2.	Unless determined otherwise by the Board or Committee, a Participant shall not be required to pay any consideration for an Option Grant.

    

	 	6.	VESTING; EXERCISE PERIOD

 

	 	6.1.	Unless determined otherwise by the Committee or Board, upon approval of the Option Grant or thereafter, Options underlying an Option Grant shall vest over four years, commencing on the vesting commencement date (the "Vesting Commencement Date") as determined by the Committee.

 

	 	6.2.	The vesting schedule of each Option Grant shall be as determined by the Committee. However, unless determined otherwise by the Committee or Board, upon approval of the Option Grant or thereafter, the following shall apply:

 

25% of the Total Option
Amount shall vest on the first anniversary of the Vesting Commencement Date, and additional 6.25% of the Total Option Amount shall
vest on the last day of each three months period immediately after the first anniversary of the Vesting Commencement Date.

 

In the case that as
a consequence of the vesting schedule mentioned above a fraction of vested Option is created, then such fraction shall be rounded
up or down, as determined by the Board.

 

	 	6.3.	Notwithstanding anything to the contrary in this Plan, all Options shall terminate and not bestow any rights on their owner after ten years from the date the Options were granted. All Options that have not been exercised by such date shall expire immediately and the Participants shall not have any claim against the Company with respect thereto.

 

	 	6.4.	The period within which Options are exercisable shall be called the “Exercise Period”. Options which have not been exercised during the Exercise Period shall expire immediately, and will be automatically returned to the Options pool and may be re-allocated.

 

	 	7.	TERMINATION OF EMPLOYMENT WITH THE GROUP

 

In the event that the
Participant is an Employee at the time of the Option Grant, whose employment with the Group was subsequently terminated, for whatever
reason but subject to Section 7.6 (including but not limited to (i) dismissal of a Participant or (ii) a Participant’s resignation,
or (iii) death of a Participant or (iv) disability of a Participant), then the following provisions shall apply:

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	7.1.	The date on which employment was terminated under applicable labor laws, or, in the case an Employee is not an employee under applicable labor laws the date in which such Employee ceases to be an Employee as defined in the Plan, shall be deemed the date in which such Employee’s employment was terminated (“Employment Termination Date”).

 

	 	7.2.	On the Employment Termination Date all Options that are not vested shall immediately expire.

   

	 	7.3.	In the event that the Participant's termination of employment is not due to the Participant's death (but does include termination due to Disability), then the Participant will be entitled to exercise all, or part of, the vested Options that have not expired, for a period of thirty (30) days after the Employment Termination Date. After such thirty days period, all unexercised Options will automatically expire.

 

For purposes of this
Section 7.3, "Disability" shall mean the inability in 100%, due to illness or injury, to engage in any gainful occupation
for which the individual is suited by education, training or experience, which condition continues for at least six (6) months.

 

	 	7.4.	Notwithstanding the above, in the event of termination of employment due to the Participant's death or Disability, the Participant (if applicable) or Participant's estate, or other person who acquired the right to exercise the Options by way of bequest or inheritance, may, but only within six (6) months after the date of such death or the Employment Termination Date (in the case of Disability), exercise all, or part of, the vested Options that have not expired. After such six (6) months period, all unexercised options shall automatically expire.

 

	 	7.5.	Notwithstanding Section 7.3 above, all Options granted to a certain Employee (whether vested or unvested) will immediately expire if the termination of the Participant’s employment is due to Participant’s breach of his/her employment agreement (whether written or oral) including without limitation, a breach of non compete obligations, or breach of his/her fiduciary duties towards the Company or a Related Entity as determined by the Committee or the Board, in their sole discretion, or in the case that competent court or other authority resolves that such employee is not entitled to discharge compensation.

 

	 	7.6.	For the purposes of this Plan, the Committee or Board is authorized to determine if and when a Participant terminated his/her employment with the Company, and due to what reason, subject to the provisions of Israeli labor laws with respect to Israeli employees.

 

	 	7.7.	The Committee or the Board shall be entitled, prospectively and retroactively, to extend the periods in which Options (either vested or unvested) do not expire and remain exercisable after the Employment Termination Date.

 

	 	8.	TERMINATION OF ENGAGEMENT WITH THE GROUP

 

In the event that a
Participant is not an Employee, and the agreement of such Participant with the Group is terminated, then, unless otherwise specified
in the Option Grant Letter Agreement, or otherwise determined by the Committee, on the date of such termination, all Options that
have not vested by then shall expire and the vested options shall remain exercisable as specified in sections 7.3, 7.4 or 7.5,
as the case may be, which shall apply mutatis mutandis to such Participant (where if such Participant has more
than one agreement with the Group, then the foregoing shall apply to the Options underlying the terminated agreement or issued
in connection therewith).

  

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	9.	ADJUSTMENTS

 

	 	9.1.	Merger, Sale of the Company or Sale of the Company’s Assets.

 

In the event of a merger
of the Company into another corporation, in a way that the Company shall no longer continue to exist as a legal entity subsequent
to such merger, the sale of all, or substantially all of the Company’s issued and outstanding shares to a third party or
the sale of all, or substantially all of the assets of the Company (each of them, a “Transaction”), then the
following provisions shall apply:

 

	 	9.1.1.	Each outstanding Option shall be assumed by, or an equivalent option shall be substituted by the successor corporation or a parent or subsidiary of the successor corporation.

 

	 	9.1.2.	In the event that the successor corporation does not agree to assume the Options or to substitute them with equivalent options, the Committee may in lieu of such assumption or substitution, provide for the Participant to have the right to exercise the Options as to all, or part of the Shares, including certain Shares as to which it would not otherwise be exercisable.

 

	 	9.1.3.	In addition to Section 9.1.2 above, and if Section 9.1.1 does not apply, the Committee may notify the Participants that all Options that are exercisable shall remain so for a period of no less then seven (7) days from the date of such notice, and that all Options will terminate upon the expiration of such period. In any case, the Committee may condition the termination of all said Options upon consummation of the Transaction.

 

	 	9.2.	Bonus Shares

 

In the event that the
Company issues any of its shares as bonus shares to all its shareholders, on a pro rata basis, then the number of Shares received
upon exercise of certain Options shall be increased to the number of Shares the Participant would have held after the issuance
of the bonus shares had such Participant exercised such Options immediately before the issuance of the bonus shares.

 

	 	9.3.	Reorganization; Separation

 

If the Company is separated,
reorganized, or consolidated with another corporation (other than as part of a Transaction) while Options which were not yet exercised
remain outstanding under this Plan, the Company shall use reasonable efforts to maintain the rights of each Participant through
such separations, reorganizations or consolidations, or compensate the Participant for such event in lieu of the Options such Participant
holds. The Committee, at its sole discretion, shall determine what steps shall be taken according to this section 9.3.

   

	 	9.4.	Changes in Capitalization

 

If the outstanding shares
of the Company shall at anytime be changed or exchanged by declaration of a share split, reverse share split, combination or reclassification
of Ordinary Shares, or any other increase or decrease in the number Company’s Ordinary Shares effected without receipt of
consideration by the Company from the shareholders, then the number, class and kind of Shares subject to this Plan or subject to
any Options therefore granted, and the Exercise Prices of the Options, shall be appropriately and equitably adjusted so as to maintain
the proportionate number of Shares without changing the aggregate Exercise Prices of the Options (except in case the Exercise Price
is equal to the par value of the shares, in which case the Exercise Price will be increased respectively). However no adjustment
shall be made by reason of the distribution of subscription rights on outstanding shares, or conversion of securities into shares
of the Company.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	9.5.	Other terms and conditions

 

	 	9.5.1.	The allocation of each Option Grant hereunder is subject to the relevant Participant’s agreement to sign any document he/she is required to sign pursuant to the provisions of this section 9. If a Participant refuses to sign any such documents, the Committee or Board may determine that the Options held by the Participant or by a trustee for such Participant’s benefit shall immediately expire.

 

	 	9.5.2.	Such adjustments as mentioned in this Section 9 shall be made by the Committee, whose determination in such respect shall be final, binding and conclusive.

 

	 	9.5.3.	Anything herein to the contrary notwithstanding, if prior to an IPO, there is a bona fide offer to purchase all or substantially all of the issued and outstanding shares of the Company, or upon a reorganization separation or the like, 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 (in accordance with the value of such Participant’s Options and Shares pursuant to the terms of such transaction) as the case may be, any Shares such Participant purchases hereunder, in accordance with the instructions issued by the Board in connection with such transaction, which will be given according to a policy of the Board concerning all of the Participants under the Plan.

  

	 	10.	ASSIGNABILITY AND SALE OF OPTIONS

 

No Option shall be assignable,
transferable, given as collateral, hypothecated pledged or encumbered and no right with respect to the Options shall be given to
any third party whatsoever, and during the lifetime of each Participant, each and all of such Participant’s rights to purchase
Shares hereunder shall be exercisable only by such Participant.

 

	 	11.	TERM AND EXERCISE OF OPTIONS

 

	 	11.1.	Options shall be exercised by a Participant by giving written notice to the Company, in the form substantially attached hereto as Exhibit B or such other form(s) and method as may be determined by the Company from time to time (the “Exercise Notice”).

 

	 	11.2.	The Exercise Price and applicable withholding taxes, if any, shall be payable upon the exercise of the Option in either: (i) cash or by check; (ii) by delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company or the Trustee; or (iii) Payment may be made by any other method approved or accepted by the Committee in its discretion, which may include procedures for net exercise.

 

	 	11.3.	The Exercise Price will be paid in NIS, or if the Exercise Price is fixed in U.S. dollars, in U.S. dollars or in accordance with the representative rate of exchange of the U.S. dollar, last published by the Bank of Israel at the time of actual payment, or as provided for by the Company.

 

	 	11.4.	Each Participant will be entitled to exercise, upon signing the Exercise Notice and any additional documents as required by the Company, and paying the Exercise Price, all, or part of the Options that are vested at the Exercise Period.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	11.5.	Options shall not be deemed exercised unless: (I) the Company receives duly signed Exercise Notice including all relevant details; and (II) the Company receives the Exercise Price.

 

	 	11.6.	The Options may be exercised only to purchase whole Shares, and in no case may a fraction of a Share be purchased. If any fractional Shares would be deliverable upon exercise, such fraction shall be rounded up or down, to the nearest whole number. Half of a Share will be rounded up.

 

	 	11.7.	Each Option granted under this Plan shall be exercisable during the Exercise Period. Subject to adjustments, as set forth in Section 9 above, the exercise of one Option shall entitle the Participant to hold one Share.

 

	 	11.8.	Without derogating from any restrictions mentioned hereinabove, the exercise of the Options is being subject to the following terms, restrictions and conditions as may be in effect on the time of the exercise of the Options is requested: (i) any applicable law or regulation; (ii) any order or limitation set by any stock exchange in which the Company’s securities may be traded (e.g., blackout periods, and lock up after an IPO); and (iii) any limitation undertaken by the Company with respect of the shares of the Company, including limitations set forth by Company’s underwriters. Such period of restriction of sale or exercise shall not be counted as part of the applicable exercise period.

 

	 	11.9.	Notwithstanding the foregoing, starting as of the Employment Termination Date of a certain Participant and during the period that the vested Options are exercisable, the Company shall be entitled (subject to the provisions of applicable law) to purchase the vested Options held by such Participant by sending the Participant a purchase notice (the "Purchase Notice"). The purchase price of each Option shall be the Market Value of an Ordinary Share less the Exercise Price of the Option. The Market Value of an Ordinary Share shall be determined as follows: (i) in case the Company's shares are listed on a stock exchange, the Market Value shall be the average price of the Shares during 5 days prior to the Purchase Notice; or (ii) in case the Company's shares are not traded, the Market Value shall be the value determined in good faith unanimously by the Board and in the event the Board members are unable to reach an agreement with respect to the Market Value within 10 days of the Purchase Notice to the Participant, the Board will refer to an external expert. The Committee or the Board shall be entitled to establish further processes for the purchase of the Options as set forth above, provided, however, that if the Company receives the Participant’s Exercise Notice prior to the receipt of the Purchase Notice from the Company, then the Company’s right to purchase the said Options shall become null and void and the Participant may exercise the vested Options pursuant to their terms.

 

	 	12.	RIGHTS AND OBLIGATIONS ATTACHED TO THE SHARES

 

	 	12.1.	No Participant shall have any of the rights or privileges of a shareholder of the Company with respect to any of the Shares, unless and until, following exercise, the registration of the Participant as holder of such Shares in the Company’s register of members is duly completed.

 

	 	12.2.	The rights and obligations attached to the Shares will be as set forth in the Articles. The Shares may be subject to rights of first refusal, co-sale rights and other rights specified in the Articles.

 

	 	12.3.	The Participant waives any of the following rights to the extent such rights are attached to the Shares: (i) pre-emptive rights in relation to issuance of new securities in the Company; (ii) rights of first refusal in relation with any sale of shares of the Company; (iii) co-sale rights in relation with any sale of shares of the Company.

   

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	12.4.	Unless provided otherwise by the Committee, until an IPO, all voting rights, and rights to receive information from the Company with respect to the Shares shall be granted to the Board or as determined by the Board, in accordance with Exhibit C attached hereto.

 

	 	12.5.	Without derogating from any restrictions mentioned hereinabove, by accepting an Option Grant, each Participant agrees that the sale or disposal of Shares is subject to the following terms, restrictions and conditions as may be in effect on the time when such sale or disposal is requested: (i) any applicable law or regulation; (ii) any order or limitation set by any stock exchange in which the Company’s securities may be traded (e.g., blackout periods, and lock up after an IPO); and (iii) any limitation undertaken by the Company with respect of the shares of the Company, including limitations set forth by Company’s underwriters.

 

	 	12.6.	Until an IPO 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 (and which do not violate the Participant's rights according to this Agreement).

 

	 	12.7.	By accepting an Option Grant, each Participant agrees that in the case of an IPO or after registering the Company’s securities for trading, to sign any document and approve any resolution or restriction upon the Shares, or modify the terms of allocation of the Shares, if such Participants signature or approval or such restriction or modification were reasonably required, in the Committee’s discretion, in order to facilitate the Company in meeting all the underwriters and stock exchange demands and all applicable securities and corporate laws and regulations.

 

	 	12.8.	The Participant shall not sell, pledge, transfer or otherwise dispose of any Shares in transactions which violate, according to the Company’s sole discretion, any applicable laws, rules and regulations, or the Articles.

 

	 	12.9.	No transfer of Shares shall be effective if the Committee determines that the transferee is a competitor of the Company (either directly or indirectly).

 

	 	12.10.	Notwithstanding anything to the contrary in this Section 12, as long as Shares are held by a trustee for the benefit of a Participant (if applicable) the Shares shall not be sold, pledged, transferred or otherwise disposed of, by the Participant until an IPO, or until such time or event as determined by the Committee, either individually or with respect to all Participants.

  

	 	13.	TERM OF THE PLAN

 

This Plan shall be effective
as of January 1, 2010, which is the day it was adopted by the Board and shall terminate when all the Options are exercised into
Shares or expired in accordance with the provisions of this Plan or such other date as shall be determined by the Board, which
date shall be no later than January 1, 2020.

 

	 	14.	AMENDMENTS; TERMINATION

 

	 	14.1.	The Board may, at any time and from time to time, amend, alter or terminate the Plan, provided, however, that the rights of the Participants shall not be adversely affected, unless such Participants agreed to such amendment, alteration or termination.

 

	 	14.2.	The Plan may be terminated at any time by an action of the Board, but any such termination will not terminate any Options granted under this Plan, which are then outstanding, without the consent of the Participant that is holding such Options.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	15.	BINDING EFFECT

 

The provisions of the
Plan shall be binding upon the heirs, executors, administrators, and successors of the Participants.

 

	 	16.	GOVERNMENT REGULATIONS AND OTHER RESTRICTIONS

 

	 	16.1.	This Plan, the Option Grant Letter Agreements, the grant and exercise of Options hereunder, the obligation of the Company to issue the Shares, and any other act or obligation of the Company or any related individual or entity acting in connection with this Plan are all subject to the Articles, 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 any Participant.

 

	 	16.2.	By accepting an Option Grant, each Participant agrees not to sell, pledge, transfer or otherwise dispose of any of the Shares such Participant may hold except in compliance with: (I) the United States Securities Act of 1933, as amended, and the rules and regulations thereunder if applicable; and (II) the Israeli Securities Law 5728 – 1968; and (III) any other applicable securities law, regulations or other rules set by any stock exchange in which the Company's securities may be traded; and to further agree that certificates evidencing any of such Shares shall bear appropriate legend to reflect such restrictions. The Company does not obligate itself to register any shares under the United States Securities Act of 1933, as amended or any other securities laws.

  

	 	17.	TAX CONSEQUENCES, INDEMNIFICATION

 

	 	17.1.	Any tax consequences (pursuant to Israeli or any other applicable law that the relevant Participant is subject to), including tax consequences due to adjustments, made in accordance with Section 9 above, arising from the grant or exercise of any Option, the payment for Shares covered thereby, or any other event or act (of the Company or any Participant) relating to the Plan, shall be borne solely by each Participant.

 

	 	17.2.	The Company and/or the Board and/or the Committee and/or a trustee for the Plan shall not be required to release any Share certificates or transfer any Shares to a Participant until all required tax payments have been fully made.

 

	 	17.3.	The Company may withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. In the case that applicable law requires so, the Company shall deduct taxes at source. Such deduction may be made from any proceeds attributed to the exercise of the Options and sale of Shares, or from any proceeds the Participant is entitled to receive from the Group or other proceeds such Participant owns and are held by the Group, including from Participant’s salary or other proceeds he/she is entitled to receive from the Company or a Related Entity. It is explicitly stated herein that each Participant who is an Employee, by accepting an Option Grant agrees to the deduction from his/her salary of any amounts that in the Company’s determination are required to be deducted under applicable law in connection with the Plan. In any such case, the Company shall be entitled to offset any amounts due to such Participant on account of such taxes.

 

	 	17.4.	In the case that the Company, or any other person on its behalf is required to pay taxes, that under applicable law should have been paid by the Participant, then such Participant shall immediately either pay such tax, or, if such tax was already paid, reimburse the Company, or such other person for the total amount paid.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	17.5.	Neither the Company, nor any Related Entity nor anyone on their behalf, shall give, or be deemed to be giving any Participant, or a potential Participant, advice regarding tax consequences relating to the Plan and issuance of securities thereunder. Each Participant shall rely solely, while considering participation in the Plan, on the advice of such Participant’s consultants.

  

	 	18.	CONTINUANCE OF EMPLOYMENT OR ENGAGEMENT

 

Neither the Plan nor
any Option Grant shall be construed to impose any obligation on any entity included in the Group to continue any Participant’s
employment with it (in the case that the Participant is an Employee) or to maintain any business engagement with such Participant.
Nothing in the Plan or in any Option Grant shall confer upon any Participant any right to continue to be employed by the Group
or to maintain any other business engagement with it, or restrict the right of any entity included in the Group to terminate such
employment or business engagement at any time.

 

	 	19.	RULES PARTICULAR TO SPECIFIC COUNTRIES

 

	 	19.1.	Notwithstanding anything herein to the contrary, the terms and conditions of the Plan may be amended with respect to particular types of Participants as determined by the Board (for example, Israeli employees, employees that are subject to US taxation) by an addendum to the Plan (the “Appendix”).

 

	 	19.2.	The Company may adopt one or more Appendixes. Each Appendix shall be approved by the Board and as required or advisable under applicable law.

 

	 	19.3.	The terms of an Appendix shall govern only with respect to the types of Participants specified in such Appendix.

 

	 	19.4.	In the case that the terms and conditions set forth in an Appendix conflict with any provisions of the Plan, the provisions of the Appendix shall govern with respect to Participants that are subject to such Appendix, provided, however, that such Appendix shall not be construed to grant the Participants rights not consistent with the terms of the Plan, unless specifically provided in such Appendix.

 

	 	20.	NON-EXCLUSIVITY OF THE PLAN

 

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

 

	 	20.2.	The grant of Options hereunder shall neither entitle the recipient thereof to participate, nor disqualify him from participating in, any other grant of Options pursuant to this Plan or any other option or stock plan of the Company.

 

		21.	MULTIPLE
AGREEMENTS; OTHER CORPORATE ACTIONS

 

	 	21.1.	The terms of each Option Grant may differ from other Options Grants granted under the Plan at the same time, or at any other time. The Board may also grant more than one Option Grant to a certain Participant during the term of this Plan, either in addition to, or in substitution for, one or more Option Grants previously granted to such Participant.

  

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	21.2.	Under no circumstances shall the Plan be construed to grant any right to a Participant, or any other third party, to postpone, delay or affect any corporate action resolved by the Company.

 

	 	22.	GOVERNING LAW & JURISDICTION

 

This Plan shall be governed
by, construed and enforced in accordance with the laws of the State of Israel, without giving effect to the principles of conflict
of laws. Any dispute or claim shall be put to the Board’s resolution. Subject to the above, the competent courts of Tel-Aviv,
Israel shall have sole jurisdiction in any matter pertaining to this Plan, and any other issue related to it.

 

	 	23.	NO WAIVER

 

The failure of the Company
or any other party acting on its behalf or assisting it in implementing the Plan to enforce at any time any provisions of the Plan
shall not be construed to constitute a waiver of such provision or of any other provision hereof.

 

	 	24.	NOTICES

 

	 	24.1.	Any notice, request, demand or other communication required or permitted under the Plan shall be in writing and shall be deemed to have been duly given, made and received only by personal delivery or if sent by certified mail, postage prepaid, return receipt requested, overnight delivery service, facsimile transmission (with confirmation of delivery), or confirmed e-mail to the address of the Company (if sent to the Company), or to the address of the Participant as such was provided by him in the Option Grant Letter Agreement, unless such address is changed by written notice received by the Company.

 

	 	24.2.	Except as otherwise set forth herein, any notice sent by mail shall be deemed to be given six days after deposit with the relevant post service; any notice sent by overnight delivery service shall be deemed given the first business day after deposited with the delivery service; and any notice sent by facsimile transmission or e-mail, shall be deemed given when transmitted if sent during normal business hours or if not, on the next business day; and any notice given by personal delivery shall be deemed given on the date of delivery.

 

	 	24.3.	In the case a certain Participant changes his or her contact details, in a way that the contact details provided to the Company by him do not enable the Company to provide notices and other communications to such Participant, then such Participant shall be deemed to have waived his or her right to receive any notices, and the Committee shall have the right, in its sole discretion, to take any appropriate action under the circumstances.

  

Appendixes

 

Appendix A: Terms of grant of options
to Israeli employees

 

Appendix B: Terms of Options granted
to United States Employees and Service Providers

 

Exhibits:

 

Exhibit A: Option Grant Letter Agreement

 

Exhibit B: Form of Exercise Notice

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

Appendix A

 

Terms of grant of Options to
Israeli employees

 

	 	1.	Purpose of the Appendix

 

	 	1.1.	This Appendix (the “Appendix”) is made as part of the Plan (as defined herein whereas all terms not otherwise defined herein shall have the meaning ascribed to them in the Plan) and pursuant to the provisions of Section 102 of the Income Tax Ordinance (as defined herein).

 

	 	1.2.	This Appendix governs grants of Options to Israeli Employees, either by a Trustee, or without a Trustee.

 

	 	2.	Definitions

 

As used herein,
the following definitions shall apply:

 

	 	2.1.	“Capital Gain Method” means choosing the alternative of capital gain method under Section 102.

 

	 	2.2.	“Eligible Participant” means any employee as such term is defined in Section 102. Without derogating from the foregoing Eligible Participant shall include any employee or Office Holder (as such term is defined in the Companies Law) of the Company or any Subsidiary except for such persons that are deemed to be ‘Ba’al Shlita’ under Section 32 to the Income Tax Ordinance.

 

	 	2.3.	"Deposit Date" means the date in which options were deposited with the Trustee for the benefit of a certain Participant.

 

	 	2.4.	“Income Tax Authorities” mean the Israeli income tax authorities that are authorized to give approvals in relation with this Appendix and Option Grants to Eligible Participants.

 

	 	2.5.	“Income Tax Ordinance” means the Israeli Income Tax Ordinance (New Version) 1961, as amended from time to time.

 

	 	2.6.	“Labor Income Method” means choosing the alternative of labor income method under Section 102.

 

	 	2.7.	“Participant” means any Eligible Participant who is granted with Options.

 

	 	2.8.	“Plan” means the Amended and Restated 2010 Incentive Option Plan this Appendix is attached to.

 

	 	2.9.	“Realization Event” means, with respect to each Option Grant granted to a certain Participant, the earlier to occur of: (I) transfer of Securities from the Trustee to such Participant; or (II) the sale of Shares by the Trustee; or (III) one day before such Participant is no longer an Israeli resident (as provided for in Section 100A to the Income Tax Ordinance).

   

	 	2.10.	“Release Term” means: (i) in the case of Capital Gains Method, a period ending twenty four (24) months after the Deposit Date; (ii) In the case of Labor Income Method ‘Release Term’ shall mean a period ending twelve (12) months after the Deposit Date.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	2.11.	“Section 102” means Section 102 to the Income Tax Ordinance as amended from time to time, and / or as superseded and any rules regulations or instructions promulgated or enacted under such Section 102.

 

	 	2.12.	“Securities” mean Options subject to a certain Option Grant and Shares received subsequent exercise of such Options.

 

	 	2.13.	“Tax Method” means either Capital Gains Method or Labor Income Method.

 

	 	2.14.	“Trust” means a trust, maintained under the Trust Agreement entered into between the Company and the Trustee for administration of grant of Options under Section 102.

 

	 	2.15.	“Trust Agreement” means the agreement between the Company and the Trustee as may be in effect from time to time specifying the duties and authorities of the Trustee.

 

	 	2.16.	“Trust Assets” mean all Securities and other assets held in Trust for the benefit of the Participants pursuant to this Appendix and the Trust Agreement

 

	 	2.17.	“Trustee” means ESOP Trust Company Ltd. (and any successor Trustee) who was, or shall be appointed by the Board of Directors of the Company and approved by the Income Tax Authorities to hold the Trust Assets.

 

	 	3.	Provisions of the Appendix shall govern

 

The provisions of the
Appendix shall supersede and govern in the case of any inconsistency or conflict arising between the provisions of the Appendix
and the provisions of the Plan, provided, however, that this Appendix shall not be construed to grant Participant rights not consistent
with the terms of the Plan, unless specifically provided herein.

 

	 	4.	Selection of Tax Method – Capital Gains Method

 

The Company chooses the
Capital Gain Method (‘Maslul Revach Hon’). This choice may be changed in the future, by a Board resolution,
provided, however, that the change in selection is permissible under the provisions of Section 102.

  

	 	5.	Holding of Securities by the Trustee

 

	 	5.1.	All Securities shall be issued to the Trustee to be held in the Trust for the benefit of the relevant Participants. All certificates representing Securities issued to the Trustee under this Appendix shall be deposited with the Trustee, and shall be held by the Trustee until such time that such Options or Shares are released from the Trust as herein provided.

 

	 	5.2.	After the Release Term is over, a Participant shall be entitled to instruct the Trustee to transfer the Shares held for such Participant’s benefit to such Participant, provided, however, that the Trustee confirms that all applicable tax as set in Section 102 was actually paid and the Trustee holds a confirmation to that effect from Income Tax Authorities.

 

	 	5.3.	In the case that the Company distributes dividends, than the amount of dividends with respect of Shares held in Trust shall be paid to the Participants that are the beneficial holders of such Shares, subject to deduction at source of the applicable tax.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	6.	Provisions governing this Appendix and Plan

 

Notwithstanding anything
to the contrary in the Plan or elsewhere in this Appendix:

 

	 	6.1.	The Plan shall have one, sole, Trustee.

 

	 	6.2.	The Appendix shall be subject to one Tax Method, unless the provisions of Section 102 allow otherwise.

 

	 	6.3.	The Participants shall not be entitled to cause a Realization Event to occur unless the Release Term is fulfilled.

 

	 	6.4.	All rights or benefits that are received subsequent to the grant or exercise the Options or the Shares underlying such Options (including and not limited to bonus shares) shall be deposited with the Trustee until the end of the Release Term, and all such rights and benefits shall be subject to the Tax Method selected by the Company.

 

	 	7.	Effectiveness of the Appendix.

 

This Appendix shall become
effective, and Option Grants may be granted hereunder only after receipt the required approvals under Section 102 from the Income
Tax Authorities.

 

	 	8.	Additional limitations

 

	 	8.1.	The Company shall not issue Options to a Participant unless such Participant confirmed in writing that he/she is aware of the provisions of Section 102 and the applicable Tax Method, and such Participant agreed in writing to the terms of the Trust Agreement, and that he/she shall not cause a Realization Event to occur before the Release Term is over. The form for the above confirmation shall be determined by the Committee, and shall be attached to the Plan as Exhibit A.

 

	 	8.2.	By accepting an Option Grant, each Participant agrees irrevocably to discharge the Trustee, the Company and any other office holder, employee or agent thereof from any liability with respect of any action or decision duly taken and bona fide executed in relation with the Plan, or relating to any Option Grant or Shares.

 

	 	8.3.	The Trustee shall use the voting rights vested in any such shares issued upon the exercise of any Options granted under the Plan, in accordance with Exhibit C of the Plan.

 

	 	9.	Grant of Options not by a Trustee

 

Notwithstanding the above,
the Company shall be entitled to allocate Option Grants not according to the Tax Methods, but by direct grant to Participants,
provided, however, that the requirements of Section 102 are met.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

Appendix B - Addendum

 

Terms of Options granted to
United States

Employees and Service Providers

 

	 	1.	Purpose of the Addendum

 

This Addendum (also referred
to as the "Addendum") is part of the Amended and Restated 2010 Incentive Option Plan of Alocbra Ltd. (the "Plan").
All terms not otherwise defined herein shall have the meaning ascribed to them in the Plan. This Addendum governs grants of Options
to United States Employees and other Service Providers.

 

	 	2.	Provisions of the Addendum

 

The provisions of the
Addendum shall supersede and govern in the case of inconsistency between the provisions of the Addendum and the provisions of the
Plan, provided, however, that this Addendum shall not be construed to grant to any Participant rights not consistent with the terms
of the Plan, unless specifically provided herein.

 

	 	3.	Eligibility

 

The individuals who shall be eligible to receive Option Grants under the Plan that are subject to the provisions of this Addendum
shall be employees, directors and other individuals and entities who are United States citizens or who are resident aliens of the
United States for United States federal tax purposes (collectively, “U.S. Persons”), and who render services
to the management, operation or development of the Company or a Subsidiary and who have contributed or may be expected to contribute
materially to the success of the Company or a Subsidiary. ISOs (as defined in Section 4 below) shall not be granted to any individual
who is not an employee of a corporation for United States federal tax purposes. The term “Subsidiary” as used
in this Addendum means a corporation or other business entity of which the Company owns, directly or indirectly through an unbroken
chain of ownership, fifty percent or more of the total combined voting power of all classes of stock.

 

	 	4.	Terms and Conditions of Options

 

Every Option granted to
a U.S. Person shall be evidenced by a written stock option agreement (the "Stock Option Agreement") in such form
as the Committee shall approve from time to time, specifying the number of Shares that may be purchased pursuant to the Option,
the time or times at which the Option shall become exercisable in whole or in part, whether the Option is intended to be an incentive
stock option (“ISO”) or a nonqualified stock option (“NSO”) and such other terms and conditions
as the Committee shall approve, and containing or incorporating by reference the following terms and conditions. The Plan and this
Addendum shall be administered in such a manner as to permit those Options granted hereunder and specially designated as an ISO
to qualify as incentive stock options as described in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”).

  

(a)    Duration.
Each Option shall expire no later than ten (10) years from its grant date; provided, however, that no ISO granted to an Employee
who owns (directly or under the attribution rules of Section 424(d) of the Code) stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Company or any Subsidiary shall expire later than five (5) years from
its date of grant.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

(b)    Exercise
Price. The exercise price of each Option shall be as specified by the Committee in its discretion; provided, however, that
the price shall be at least 100 percent of the Fair Market Value (as hereinafter defined) of the Shares on the date on which the
Board grants the Option (or shareholders resolution to grant such options, if such resolution is required), which shall be considered
the date of grant of the Option for purposes of fixing the price; and provided, further, that the price with respect to an ISO
granted to an Employee who at the time of grant owns (directly or under the attribution rules of Section 424(d) of the Code) stock
representing more than ten percent (10%) of the voting power of all classes of stock of the Company or of any Subsidiary shall
be at least 110 percent of the Fair Market Value of the Shares on the date of grant of the ISO. For purposes of the Plan, except
as may be otherwise explicitly provided in the Plan or in any Stock Option Agreement, the “Fair Market Value”
of a Share at any particular date shall be determined according to the following rules: (i) if the Shares are not at the time listed
or admitted to trading on a stock exchange, the Fair Market Value shall be the closing price of the Shares on the date in question
in the over-the-counter market, as such price is reported in a publication of general circulation selected by the Board and regularly
reporting the price of the Shares in such market; provided, however, that if the price of the Shares is not so reported, the Fair
Market Value shall be determined in good faith by the Board, which may take into consideration (1) the price paid for the Shares
in the most recent trade of a substantial number of shares known to the Board to have occurred at arm’s length between willing
and knowledgeable investors, (2) an appraisal by an independent party or (3) any other method of valuation undertaken in good faith
by the Board, or some or all of the above as the Board shall in its discretion elect; or (ii) if the Shares are at the time listed
or admitted to trading on any stock exchange, then the Fair Market Value shall be the last known closing price of the Shares when
the relevant Option Grant is approved by the Company. Notwithstanding Subsection (ii) above, the Administrator may adopt any other
method in order to determine the Fair Market Value of a Share, as long as use of such method will not give rise to adverse tax
consequences under Internal Revenue Code Section 409A.

 

(c)    Notice
of ISO Stock Disposition. The Participant must notify the Company promptly in the event that he sells, transfers, exchanges
or otherwise disposes of any Shares issued upon exercise of an ISO before the later of (i) the second anniversary of the date of
grant of the ISO or (ii) the first anniversary of the date the shares were issued upon his exercise of the ISO.

  

(d)    Effect
of Cessation of Employment or Service Relationship. The Committee shall determine in its discretion and specify in each Stock
Option Agreement the effect, if any, of the termination of the Participant’s employment with or performance of services for
the Company or any Subsidiary on the exercisability of the Option.

 

(e)    No
Rights as Stockholder. A Participant shall have no rights as a stockholder with respect to any Shares covered by an Option
until the date of issuance of a stock certificate to him for the Shares. No adjustment shall be made for dividends or other rights
for which the record date is earlier than the date the stock certificate is issued, other than as required or permitted by the
Plan.

 

(f)    Transferability
of Options. Except as permitted by the Committee, and set forth in the terms of a Participant’s Stock Option Agreement,
an Option shall not be assignable or transferable by the Participant except by will or by the laws of descent and distribution.
During the life of the Participant, an Option shall be exercisable only by him, by a conservator or guardian duly appointed for
him by reason of his incapacity or by the person appointed by the Participant in a durable power of attorney acceptable to the
Company’s counsel.

 

	 	5.	Requirements of Law

 

	 	(a)	The Company shall not be required to transfer Shares or to sell or issue any Shares upon the exercise of any Option if the issuance of such Shares will result in a violation by the Participant or the Company of any provisions of any law, statute or regulation of any governmental authority. Specifically, in connection with the Securities Act of 1933, as amended from time to time (the “Securities Act”), upon the exercise of any Option, the Company will not be required to issue Shares unless the Committee has received evidence satisfactory to it to the effect that the holder of the Option will not transfer such shares except pursuant to a registration statement in effect under the Securities Act or unless an opinion of counsel satisfactory to the Company has been received by the Company to the effect that registration is not required. Any determination in this connection by the Committee shall be conclusive. The Company shall not be obligated to take any other affirmative action in order to cause the exercise of an Option to comply with any law or regulations of any governmental authority, including, without limitation, the Securities Act or applicable state securities laws.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	(b)	All other provisions of this Addendum and the Plan notwithstanding, this Addendum and the Plan shall be administered and construed so as to avoid any person who receives an Option Grant incurring any adverse tax consequences under Internal Revenue Code Section 409A. The Administrator shall suspend the application of any provisions of the Plan which could, in its sole determination, result in an adverse tax consequence to any person under Internal Revenue Code Section 409A.

  

	 	6.	Forfeiture for Dishonesty or Termination for Cause

 

Notwithstanding any provision
of the Plan to the contrary, if the Committee determines, after full consideration of the facts, that:

 

(a)    the
Participant has been engaged in fraud, embezzlement, theft or commission of a felony in the course of his or her employment by
or involvement with the Company, a Subsidiary or a parent corporation as defined in Section 424 of the Code or any direct or indirect
subsidiary of such parent (an “Affiliate”) or has made unauthorized disclosure of trade secrets or other proprietary
information of the Company, a Subsidiary, an Affiliate or of a third party who has entrusted such information to the Company, a
Subsidiary or an Affiliate; or

 

(b)    the
Participant has violated the terms of any employment, noncompetition, nonsolicitation or proprietary information agreement to which
he is a party; or

 

(c)    the
Participant’s employment or involvement with the Company, a Subsidiary or an Affiliate was terminated for “cause,”
as defined in any employment agreement with the Participant, if applicable, or if there is no such agreement, as determined by
the Committee, which may determine that “cause” includes among other matters the willful failure or refusal of the
Participant to perform and carry out his or her assigned duties and responsibilities diligently and in a manner satisfactory to
the Committee;

 

then the Participant’s
right to exercise an Option shall terminate as of the date of such act (in the case of (a) or (b)) or such termination (in the
case of (c)), the Participant shall forfeit all unexercised Options and shall be required to sell to the Company or, in the case
the Company is not allowed to repurchase its own shares, to a third party approved by the Company, all or any part of the Shares
acquired by the Participant prior to such event, at a price equal to the lesser of their Fair Market Value or the amount paid to
the Company upon such transfer or exercise. If a Participant whose behavior the Company asserts falls within the provisions of
(a), (b) or (c) above has exercised or attempts to exercise an Option prior to consideration of the application of this Section
6 or prior to a decision of the Committee, the Company shall not be required to recognize such exercise until the Committee has
made its decision and, in the event any exercise shall have taken place, it shall be of no force and effect (and shall be voidab initio)
if the Committee makes an adverse determination, provided, however, that if the Committee finds in favor of the Participant then
the Participant will be deemed to have exercised the Option retroactively as of the date he or she originally gave notice of his
or her attempt to exercise or actual exercise, as the case may be. The decision of the Committee as to the cause of a Participant’s
discharge and the damage done to the Company shall be final, binding and conclusive. No decision of the Committee, however, shall
affect in any manner the finality of the discharge of such Participant by the Company. For purposes of this Section 6, reference
to the Company shall include any Subsidiary or Affiliate.

  

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	7.	Tax Withholding

 

To the extent required
by law, the Company may withhold or cause to be withheld income and other taxes with respect to any income recognized by a Participant
by reason of the exercise of an Option, and as a condition to the receipt of any Option the Participant shall agree that if the
amount payable to him by the Company and any Subsidiary in the ordinary course is insufficient to pay such taxes, then he shall
upon the request of the Company pay to the Company an amount sufficient to satisfy its tax.

 

Exhibit
A

 

Option
Grant Letter Agreement

 

This letter agreement (the “Agreement”)
is made is made as of _______ __, 20__, by and among Alcobra Ltd. (the “Company”), an Israeli Company with main
place of business at [Address], Israel, and _________, an [Israeli citizen], I.D number _______ (the “Participant”).

 

	 	Whereas	The Company adopted an Incentive Option Plan (together with applicable Appendixes, the “Plan”), a copy of which was reviewed by the Participant; and

 

	 	Whereas	The Company resolved to grant to the Participant an Option Grant, subject to the terms and conditions herein; and

 

NOW,
THEREFORE, it is agreed as follows:

 

		 1.	All
terms not defined herein shall have the meaning ascribed to them in the Plan.

 

	 	2.	The Company resolved to grant certain options (the “Option Grant”) to purchase the Company’s Ordinary Shares to the Participant.

 

	 	3.	The terms of the Option Grant are as follows:

 

	 	3.1.	Number of Options: _______ (____________________).

 

	 	3.2.	Vesting Schedule – as defined in the Plan / ___________________. [Choose the relevant alternative]

 

	 	3.3.	Vesting Commencement Date: _____ __, 200_.

 

	 	3.4.	Exercise Price per options: US$____ per share.

 

	 	3.5.	[Acceleration Terms: ________________________]

 

	 	4.	The grant of the Option Grant is conditioned upon, and shall not become effective unless and until the Participant agreeing to the terms of this Agreement.

 

	 	5.	Contact details and personal details of the Participant as supplied by it:

 

	 	5.1.	Full name: _________.

 

	 	5.2.	Identification / registration number: _____________. [For Israeli citizens or entities]

 

	 	5.3.	Address: ______________.

 

	 	5.4.	Telephone (home): _________.

 

	 	5.5.	Cellular Phone: ____________.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	5.6.	Facsimile: __________.

 

	 	5.7.	E-mail: ____________.

 

	 	6.	The grant is made in accordance with the terms of the Plan.

  

	 	7.	Prior to signing this Agreement Participant had the reasonable opportunity to review the Plan and consult with his / her advisors (such advisors shall not include the Company or anyone on the Company’s behalf) as Participant deemed fit.

 

	 	8.	Participant hereby confirms that he /she received reasonable opportunity to review the Plan and understand its terms, and that Participant agrees to the terms and provisions of the Plan.

 

	 	9.	The Participant acknowledges and agrees that the Company may be merged, or acquired or sold to a third party, and in such case, by signing this Agreement, the Participant grants the Board, or anyone on behalf of the Board, the right to sign on behalf of such Participant any document or agreement reasonably necessary, in the Board’s discretion, in order to consummate such acquisition, merger or sale.

 

	 	10.	Participant hereby confirms that he /she is aware of the provisions of Section 102 (the updated Section 102 is attached hereto as Schedule A) and the applicable Tax Method.

 

	 	11.	Participant shall not exercise shares (as such term is defined in Section 102) before the Release Term.

 

	 	12.	Participant agrees to the terms in the Trust Agreement (attached hereto as Schedule B).

 

[Sections 10 –
12 are applicable only to grants under Appendix A]

 

Sincerely yours,

 

	Alcobra Ltd.	 	____________________ [Participant]
	 	 	 	 	 	 	 
	By:	 	 	 	Name:	 	 
	Title:	 	 	 	 	 	 

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

[for consultant use this form]

 

Option Grant Letter Agreement

 

This letter agreement (the “Agreement”)
is made is made as of _______ __, 20__, by and among Alcobra Ltd. (the “Company”), an Israeli Company with main
place of business at [Address], Israel, and _________, an [Israeli citizen], I.D number _______ (the “Participant”).

 

	 	Whereas	The Company adopted an Incentive Option Plan (together with applicable Appendixes, the “Plan”), a copy of which was reviewed by the Participant; and

 

	 	Whereas	The Company resolved to grant to the Participant an Option Grant, subject to the terms and conditions herein; and

 

NOW,
THEREFORE, it is agreed as follows:

 

	 	1.	All terms not defined herein shall have the meaning ascribed to them in the Plan.

 

	 	2.	The Company resolved to grant certain options (the “Option Grant”) to purchase the Company’s Ordinary Shares to the Participant.

 

	 	3.	The terms of the Option Grant are as follows:

 

	 	3.1.	Number of Options: _______ (____________________).

 

	 	3.2.	Vesting Schedule – as defined in the Plan / ___________________. [Choose the relevant alternative]

 

	 	3.3.	Vesting Commencement Date: _____ __, 200_.

 

	 	3.4.	Exercise Price per options: US$____ per share.

 

	 	3.5.	[Acceleration Terms: ________________________]

 

	 	4.	The grant of the Option Grant is conditioned upon, and shall not become effective unless and until the Participant agreeing to the terms of this Agreement.

 

	 	5.	Contact details and personal details of the Participant as supplied by it:

 

	 	5.1.	Full name: _________.

 

	 	5.2.	Identification / registration number: _____________. [For Israeli citizens or entities]

 

	 	5.3.	Address: ______________.

 

	 	5.4.	Telephone (home): _________.

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

	 	5.5.	Cellular Phone: ____________.

 

	 	5.6.	Facsimile: __________.

 

		5.7.	E-mail:
____________.

 

	 	6.	The grant is made in accordance with the terms of the Plan.

 

	 	7.	Prior to signing this Agreement Participant had the reasonable opportunity to review the Plan and consult with his / her advisors (such advisors shall not include the Company or anyone on the Company’s behalf) as Participant deemed fit.

 

	 	8.	Participant hereby confirms that he /she received reasonable opportunity to review the Plan and understand its terms, and that Participant agrees to the terms and provisions of the Plan.

 

	 	9.	The Participant acknowledges and agrees that the Company may be merged, or acquired or sold to a third party, and in such case, by signing this Agreement, the Participant grants the Board, or anyone on behalf of the Board, the right to sign on behalf of such Participant any document or agreement reasonably necessary, in the Board’s discretion, in order to consummate such acquisition, merger or sale.

 

Sincerely yours,

 

	Alcobra Ltd.	 	____________________ [Participant]
	 	 	 	 	 	 	 
	By:	 	 	 	Name:	 	 
	Title:	 	 	 	 	 	 

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option Plan

     

    

 

Exhibit B

 

Form of Exercise Notice

 

To: Alcobra Ltd. (the “Company”)

 

Attention: Secretary, CFO

 

1.           Exercise
of Option. Effective as of today, _________ ___, 200_, I the undersigned ("Participant") hereby elects to
exercise Participant's option to _________ Shares, each 0.01 NIS par value of the Company (hereinafter the: “Shares”),
under and pursuant to the Company’s Amended and Restated 2010 Incentive Option Plan (the "Plan") and the
Option Grant Letter Agreement dated ________ __, 200_ (the "Option Agreement").

 

2.           Delivery
of Payment. Participant herewith delivers to the Company the full payment for the Shares/Participant herewith delivers
to the Company an irrevocable direction to a securities brokers approved by the Company to sell Shares and to deliver all or part
of the sales proceeds to the Company or to the Trustee][Cross out the irrelevant options], as set forth in the Option Agreement.

 

3.           Representations
of Participant. Participant acknowledges that Participant has received, read and understood the Plan and the Option Agreement
and agrees to abide by and be bound by their terms and conditions.

 

4.           Rights
as Shareholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a
duly authorized transfer agent of the Company), no right to receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Shares, notwithstanding the exercise of the Option. The Shares shall be issued to Participant as soon
as practicable after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date
is prior to the date of issuance of the Shares.

 

5.           Waiver
of Rights. The Participant hereby waives any of the following rights to the extent such rights are attached to the Shares:
(i) pre-emptive rights in relation to issuance of new securities in the Company; (ii) rights of first refusal in relation with
any sale of shares of the Company; (iii) co-sale rights in relation with any sale of shares of the Company

 

5.           Tax
Consultation. Participant understands that Participant may suffer adverse tax consequences as a result of Participant's purchase
or disposition of the Shares. Participant represents that Participant has consulted with any tax consultants Participant deems
advisable in connection with the purchase or disposition of the Shares and that Participant is not relying on the Company or any
Related Entity for any tax advice.

 

Submitted by:

PARTICIPANT

 

	Signature: ____________________	 
	 	 
	Print Name: __________________	 

 

Address:

 

    Alcobra Ltd. – Amended and Restated 2010 Incentive Option PlanForm of Medium-Term Notes, Series K

 Exhibit 4.1 

[Face of Note] 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation
(“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as requested by an authorized representative
of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the
registered owner hereof, Cede & Co., has an interest herein. 
  

			
	 CUSIP NO. 94986R5N7
	 	FACE AMOUNT: $                    
	REGISTERED NO.         	 	

 WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the Lowest Performing of the S&P 500®
Index 
 and the Russell 2000® Index due April 30, 2025 

WELLS FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter
called the “Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the
Redemption Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is redeemed prior to the Stated Maturity Date as provided below under “Optional Redemption,” and to pay Contingent Coupon Payments
(as defined below) on the Face Amount of this Security to the extent provided herein on the Contingent Coupon Payment Dates specified herein at the Applicable Contingent Coupon Rate (as defined below) until the earlier of the Stated Maturity Date
and the Optional Redemption Date (as defined below), if any. The “Initial Stated Maturity Date” shall be April 30, 2025. If the Final Calculation Day (as defined below) is not postponed, the Initial Stated Maturity Date will be
the “Stated Maturity Date.” If the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial Stated Maturity Date and (ii) the third Business Day (as defined
below) after the last Final Calculation Day as postponed. 
 “Face Amount” shall mean, when used with
respect to this Security, the amount set forth on the face of this Security as its “Face Amount.” 

 Optional Redemption 

The Company may, at its option, redeem this Security, in whole but not in part, on any Optional Redemption Date (as defined
below) by giving notice to the Holder hereof on or before the Calculation Day (as defined below) immediately preceding that Optional Redemption Date. If this Security is redeemed, the Holder hereof will receive the Optional Redemption Price (as
defined below) plus a final Contingent Coupon Payment (as defined below), if any, on the applicable Optional Redemption Date. Unless the Company defaults in the payment of the Optional Redemption Price plus the final Contingent Coupon Payment, if
any, this Security will cease to be outstanding on such Optional Redemption Date, no additional Contingent Coupon Payments will be payable on this Security and the Holder hereof will have no further rights under this Security after such Optional
Redemption Date. The “Optional Redemption Price” is equal to the Face Amount of this Security. The “Optional Redemption Dates” shall be the Contingent Coupon Payment Dates (as defined below) following each
Calculation Day scheduled to occur from April 2018 to January 2025, inclusive. 
 Payment of Contingent Coupon Payments, the Redemption Amount
and the Optional Redemption Price 
 On each quarterly Contingent Coupon Payment Date, the Company shall pay a
Contingent Coupon Payment if, and only if, the Closing Level (as defined below) of the Lowest Performing Index (as defined below) on the related Calculation Day (as defined below) is greater than or equal to its Coupon Threshold Level (as defined
below). A “Contingent Coupon Payment,” if payable as provided herein, shall be equal to the product of (i) the Face Amount of this Security, (ii) the Applicable Contingent Coupon Rate, and (iii) 90/360. The
“Contingent Coupon Payment Dates” shall be the fourth Business Day following each Calculation Day, as each such Calculation Day may be postponed as herein provided, provided that the Contingent Coupon Payment Date with respect to
the Final Calculation Day will be the Stated Maturity Date. Any Contingent Coupon Payments will be rounded to the nearest cent, with one-half cent rounded upward. The “Applicable Contingent Coupon Rate” that will apply with respect
to any Calculation Day is as follows: 
  

			
	 For the Calculation Days scheduled to occur from
	  	
	July 2017 to April 2021:	  	 7.00% per annum

		
	For the Calculation Days scheduled to occur from	  	
	July 2021 to April 2025:	  	 10.00% per annum

 Any Contingent Coupon Payment so payable, and punctually paid or duly provided for, on any
Contingent Coupon Payment Date will, as provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such Contingent Coupon
Payment next preceding such Contingent Coupon Payment Date. The Regular Record Date for a Contingent Coupon Payment Date shall be the date one Business Day prior to such Contingent Coupon Payment Date. 

Any Contingent Coupon Payment not punctually paid or duly provided for will forthwith cease to be payable to the Holder on
such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of 

  
 2 

 
business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than
10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be
required by such exchange, all as more fully provided in the Indenture. 
 Payment of any Contingent Coupon Payment on this
Security will be made in immediately available funds at the office or agency of the Company maintained for that purpose in the City of Minneapolis, Minnesota; provided, however, that, at the option of the Company, payment of any Contingent Coupon
Payment may be paid by check mailed to the Person entitled thereto at such Person’s last address as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments of any Contingent
Coupon Payment and the Redemption Amount or the Optional Redemption Price, as applicable, on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose in the City
of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding the foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this
Security will be made to the Depositary by wire transfer of immediately available funds. 
 Payment of the Redemption Amount
or the Optional Redemption Price, as applicable, and any Contingent Coupon Payments on this Security will be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private
debts. 
 Definitions Relating to Redemption Amount, the Optional Redemption Price and Contingent Coupon Payments 

If this Security is not redeemed prior to the Stated Maturity Date as provided above under “Optional Redemption,”
the “Redemption Amount” of this Security will equal: 
  

	•	 	 if the Ending Level of the Lowest Performing Index on the Final Calculation Day (as defined below) is greater
than or equal to its Downside Threshold Level: the Face Amount; or 

  

	•	 	 if the Ending Level of the Lowest Performing Index on the Final Calculation Day is less than its Downside
Threshold Level: 

  

									
	 	 	  Face Amount  x  	 	  

Performance Factor of the Lowest Performing

Index on the Final Calculation Day
	 		 	 
	 	 	 	 	 	 

 All calculations with respect to the Redemption Amount will be rounded to the nearest one hundred-thousandth,
with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Redemption Amount will be rounded to the nearest cent, with one-half cent rounded upward. 

  
 3 

 “Index” shall mean each of the S&P 500 Index and the Russell
2000 Index. 
 The “Pricing Date” shall mean April 25, 2017. 

The “Lowest Performing Index” for any Calculation Day will be the Index with the lowest Performance Factor on
that Calculation Day (as such Calculation Day may be postponed for one or both Indices). 
 The “Performance
Factor” with respect to an Index on any Calculation Day is its Closing Level on such Calculation Day divided by its Starting Level (expressed as a percentage). 

The “Starting Level” with respect to the S&P 500 Index is 2388.61, its Closing Level on the Pricing Date,
and with respect to the Russell 2000 Index is 1411.077, its Closing Level on the Pricing Date. 
 The “Ending
Level” of an Index will be its Closing Level on the Final Calculation Day. 
 The “Coupon Threshold
Level” with respect to the S&P 500 Index is 1672.027, which is equal to 70% of its Starting Level, and with respect to the Russell 2000 Index is 987.7539, which is equal to 70% of its Starting Level. 

The “Downside Threshold Level” with respect to the S&P 500 Index is 1433.166, which is equal to 60% of
its Starting Level, and with respect to the Russell 2000 Index is 846.6462, which is equal to 60% of its Starting Level. 

The “Closing Level” with respect to each Index on any Trading Day means the official closing level of that
Index reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into
account the decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth below under “—Market Disruption Events” and “—Discontinuance
of an Index; Alteration of Method of Calculation.” 
 “Index Sponsor” shall mean the sponsor or
publisher of an Index. 
 “Business Day” shall mean a day, other than a Saturday or Sunday, that is neither
a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in New York, New York. 

The “Calculation Days” shall be the 24th day of each
January, April, July and October commencing July 2017 and ending January 2025, and the Final Calculation Day. If any such day is not a Trading Day with respect to either Index, that Calculation Day for each Index will be postponed to the next
succeeding day that is a Trading Day with respect to each Index. A Calculation Day for an Index is also subject to postponement due to the occurrence of a Market Disruption Event (as defined below) with respect to such Index on such Calculation Day.
The “Final Calculation Day” is April 24, 2025. If a Market Disruption Event occurs or is continuing with respect to an Index on any Calculation Day, then such Calculation Day for such Index will be postponed to the first
succeeding Trading Day for such Index on which a Market Disruption 

  
 4 

 
Event for such Index has not occurred and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day for such Index after the originally
scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day for such Index. If a Calculation Day has been postponed eight Trading Days for an Index after the originally scheduled Calculation Day and a Market
Disruption Event occurs or is continuing with respect to such Index on such eighth Trading Day, the Calculation Agent will determine the Closing Level of such Index on such eighth Trading Day in accordance with the formula for and method of
calculating the Closing Level of such Index last in effect prior to commencement of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such
security, its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on
such date of each security included in such Index. As used herein, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the Scheduled Closing Time
of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange. Notwithstanding the postponement of a Calculation Day for one Index due to a Market Disruption
Event with respect to such Index on such Calculation Day, the originally scheduled Calculation Day will remain the Calculation Day for the other Index if such other Index is not affected by a Market Disruption Event on such day. 

“Calculation Agent Agreement” shall mean the Calculation Agent Agreement dated as of March 18, 2015
between the Company and the Calculation Agent, as amended from time to time. 
 “Calculation Agent” shall
mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among other things, whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any, and the Redemption Amount, if any,
which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may
appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this Security. 

Certain Definitions 
 A
“Trading Day” with respect to an Index means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges with respect to each security underlying such Index are scheduled to be open for trading for
their respective regular trading sessions and (ii) each Related Futures or Options Exchange with respect to such Index is scheduled to be open for trading for its regular trading session. 

The “Relevant Stock Exchange” for any security underlying an Index means the primary exchange or quotation
system on which such security is traded, as determined by the Calculation Agent. 

  
 5 

 The “Related Futures or Options Exchange” for an Index means an
exchange or quotation system where trading has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to such Index. 

Discontinuance Of An Index; Alteration Of Method Of Calculation 

If an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or
substitute equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor Equity Index”), then, upon the Calculation Agent’s notification of that determination to the
Trustee and the Company, the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity for purposes of calculating the Closing Level of such Index on any date of determination. Upon
any selection by the Calculation Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security. 

In the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, a
Calculation Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will calculate a substitute Closing Level for such Index in accordance with the formula for and method of
calculating such Index last in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance. If a Successor Equity Index is selected or the Calculation Agent calculates a
level as a substitute for such Index, the Successor Equity Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether a Market Disruption Event exists. 

If on a Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will
calculate a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect prior to the failure, but using only those securities that comprised such Index immediately prior to that
failure; provided that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions set forth above under the definition of “Calculation Days” shall apply in lieu of the
foregoing. 
 If at any time the relevant Index Sponsor makes a material change in the formula for or the method of
calculating an Index, or in any other way materially modifies such Index (other than a modification prescribed in that formula or method to maintain such Index in the event of changes in constituent stock and capitalization and other routine
events), then, from and after that time, the Calculation Agent will, at the close of business in New York, New York, on each date that the Closing Level of such Index is to be calculated, calculate a substitute Closing Level of such Index in
accordance with the formula for and method of calculating such Index last in effect prior to the change, but using only those securities that comprised such Index immediately prior to that change. Accordingly, if the method of calculating an Index
is modified so that the level of such Index is a fraction or a multiple of what it would have been if it had not been modified, then the Calculation Agent will adjust such Index in order to arrive at a level of such Index as if it had not been
modified. 

  
 6 

 Market Disruption Events 

A “Market Disruption Event” with respect to an Index means any of the following events as determined by the
Calculation Agent in its sole discretion: 
  

	 	(A)	 The occurrence or existence of a material suspension of or limitation imposed on trading by the Relevant Stock
Exchanges or otherwise relating to securities which then comprise 20% or more of the level of such Index or any Successor Equity Index at any time during the one-hour period that ends at the Close of Trading on that day, whether by reason of
movements in price exceeding limits permitted by those Relevant Stock Exchanges or otherwise. 

  

	 	(B)	 The occurrence or existence of a material suspension of or limitation imposed on trading by any Related
Futures or Options Exchange or otherwise in futures or options contracts relating to such Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day, whether by reason of movements in price exceeding limits permitted by the Related Futures or Options Exchange or otherwise. 

  

	 	(C)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, securities that then comprise 20% or more of the level of such Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
the one-hour period that ends at the Close of Trading on that day. 

  

	 	(D)	 The occurrence or existence of any event, other than an early closure, that materially disrupts or impairs the
ability of market participants in general to effect transactions in, or obtain market values for, futures or options contracts relating to such Index or any Successor Equity Index on any Related Futures or Options Exchange at any time during the
one-hour period that ends at the Close of Trading on that day. 

  

	 	(E)	 The closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities that then
comprise 20% or more of the level of such Index or any Successor Equity Index are traded or any Related Futures or Options Exchange with respect to such Index or any Successor Equity Index prior to its Scheduled Closing Time unless the earlier
closing time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock
Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual
closing time on that day. 

  
 7 

	 	(F)	 The Relevant Stock Exchange for any security underlying such Index or Successor Equity Index or any Related
Futures or Options Exchange fails to open for trading during its regular trading session. 

 For purposes
of determining whether a Market Disruption Event has occurred with respect to an Index: 
  

	 	(1)	 the relevant percentage contribution of a security to the level of such Index or any Successor Equity Index
will be based on a comparison of (x) the portion of the level of such Index attributable to that security and (y) the overall level of such Index or Successor Equity Index, in each case immediately before the occurrence of the Market
Disruption Event; 

  

	 	(2)	 the “Close of Trading” on any Trading Day for such Index or any Successor Equity Index means
the Scheduled Closing Time of the Relevant Stock Exchanges with respect to the securities underlying such Index or Successor Equity Index on such Trading Day; provided that, if the actual closing time of the regular trading session of any such
Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market Disruption Event” above, with respect to any security
underlying such Index or Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the “Close of Trading” means such actual closing time and (y) for purposes of clauses (B) and (D) of the
definition of “Market Disruption Event” above, with respect to any futures or options contract relating to such Index or Successor Equity Index, the “Close of Trading” means the latest actual closing time of the regular trading
session of any of the Relevant Stock Exchanges, but in no event later than the Scheduled Closing Time of the Relevant Stock Exchanges; 

  

	 	(3)	 the “Scheduled Closing Time” of any Relevant Stock Exchange or Related Futures or Options
Exchange on any Trading Day for such Index or any Successor Equity Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures or Options Exchange on such Trading Day, without regard to after hours or any other
trading outside the regular trading session hours; and 

  

	 	(4)	 an “Exchange Business Day” means any Trading Day for such Index or any Successor Equity Index
on which each Relevant Stock Exchange for the securities underlying such Index or any Successor Equity Index and each Related Futures or Options Exchange with respect to such Index or any Successor Equity Index are open for trading during their
respective regular trading sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled Closing Time. 

Calculation Agent 

The Calculation Agent will determine whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any,
and the Redemption Amount, if any. In addition, the Calculation Agent will (i) determine if adjustments are required to the Closing Level of an Index 

  
 8 

 
under the circumstances described in this Security, (ii) if publication of an Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine
the Closing Level of such Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption Event has occurred. 

The Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which
shall be a broker-dealer, bank or other financial institution) with respect to this Security. 

All determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the
Calculation Agent and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security. 

Redemption and Repayment 

This Security is not subject to repayment at the option of the Holder hereof prior to April 30, 2025. This Security is
subject to redemption prior to April 30, 2025 as set forth under “Optional Redemption” above. This Security is not entitled to any sinking fund. 

Acceleration 
 If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Redemption Amount (calculated as set forth in the next two sentences) of this Security may be declared due and payable in the manner
and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Redemption Amount hereof calculated as provided herein, plus a portion of a final
Contingent Coupon Payment, if any. The Redemption Amount and any final Contingent Coupon Payment will be calculated as though the date of acceleration were the Final Calculation Day. The final Contingent Coupon Payment, if any, will be prorated from
and including the immediately preceding Contingent Coupon Payment Date to but excluding the date of acceleration. 
  

 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions
shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit
under the Indenture or be valid or obligatory for any purpose. 
 [The remainder of this page has been left intentionally blank] 

  
 9 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal. 
 DATED:
                                 

 

					
	WELLS FARGO & COMPANY
		
	By:	 	 
		 	 
		 	Its:	 	 

 [SEAL] 
  

					
	Attest:	 	 
		 	 
		 	Its:	 	 

 TRUSTEE’S CERTIFICATE OF 

AUTHENTICATION 
 This is one of the Securities of the 

series designated therein described 
 in the within-mentioned Indenture. 
 CITIBANK, N.A., 

      as Trustee 
  

			
	By:	 	 
		 	Authorized Signature
		
		 	OR

 WELLS FARGO BANK, N.A., 

  as Authenticating Agent for the Trustee 
  

			
	By:	 	 
		 	Authorized Signature

  
 10 

 [Reverse of Note] 

WELLS FARGO & COMPANY 

MEDIUM-TERM NOTE, SERIES K 

Due Nine Months or More From Date of Issue 

Principal at Risk Securities Linked to the Lowest Performing of the S&P 500®
Index 
 and the Russell 2000® Index due April 30, 2025 

This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an indenture dated as of July 21, 1999, as amended or supplemented from time to time (herein called the “Indenture”), between the Company and
Citibank, N.A., as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series of the Securities designated as Medium-Term Notes, Series K, of the Company, which series is limited to an aggregate principal amount or face amount, as applicable, of $25,000,000,000 or the equivalent thereof in one or more
foreign or composite currencies. The amount payable on the Securities of this series may be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities, commodities,
currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series may
mature at different times, be redeemable at different times or not at all, be repayable at the option of the Holder at different times or not at all and be denominated in different currencies. 

Article Sixteen of the Indenture shall not apply to this Security. 

The Securities are issuable only in registered form without coupons and will be either
(a) book-entry securities represented by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated
securities issued to and registered in the names of, the beneficial owners or their nominees. 
 The Company agrees, to the
extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of interest against a Holder of this Security. 

Modification and Waivers 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights
and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the Holders of a majority in principal amount of the
Securities at the 

  
 11 

 
time Outstanding of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities of all
series at the time Outstanding affected by certain provisions of the Indenture, acting together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain
past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such
series. Solely for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in
the requisite aggregate principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Security. 
 Defeasance 

Section 403 and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the
Indenture, relating to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants and certain Events of Default, upon compliance by the Company with certain conditions set forth therein,
shall not apply to this Security. The remaining provisions of Section 401 of the Indenture shall apply to this Security. 
 Authorized
Denominations 
 This Security is issuable only in registered form without coupons in denominations of $1,000 or any
amount in excess thereof which is an integral multiple of $1,000. 
 Registration of Transfer 

Upon due presentment for registration of transfer of this Security at the office or agency of the Company in the City of
Minneapolis, Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the
Indenture and subject to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental charge imposed in connection therewith. 

This Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the
Company that it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not
appointed within 90 days after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines that this Security shall be exchangeable for definitive Securities in registered form
and notifies the Trustee thereof or (z) an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable pursuant to the preceding sentence, it shall be exchangeable for
definitive Securities in registered 

  
 12 

 
form, bearing interest at the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the
Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global
Security will not be entitled to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under the Indenture. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary. 
 Obligation of the Company Absolute 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation
of the Company, which is absolute and unconditional, to pay the Contingent Coupon Payments, if any, and the Redemption Amount or the Optional Redemption Price, as applicable, on this Security at the times, place and rate, and in the coin or
currency, herein prescribed, except as otherwise provided in this Security. 
 No Personal Recourse 

No recourse shall be had for the payment of any Contingent Coupon Payments or the Redemption Amount or the Optional Redemption
Price, as applicable, on this Security or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or director, as
such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly waived and released. 
 Defined Terms 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture
unless otherwise defined in this Security. 
 Governing Law 

This Security shall be governed by and construed in accordance with the law of the State of New York, without regard to
principles of conflicts of laws. 

  
 13 

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations: 
  

					
	 TEN COM
	 	  -- 
	 	 as tenants in common

			
	 TEN ENT
	 	  -- 
	 	 as tenants by the entireties

			
	 JT TEN
	 	  -- 
	 	 as joint tenants with right

of survivorship and not
 as
tenants in common

  

									
	 UNIF GIFT MIN ACT
	 	  -- 
	 	 	 	 Custodian
	 	 
		 		 	(Cust)	 		 	(Minor)

  

	
	Under Uniform Gifts to Minors Act
	
	   

	(State)

 Additional abbreviations may also be used though not in the above list. 

FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto 

 

	
	 Please Insert Social Security or
 Other
Identifying Number of Assignee

	
	   

  

	
	 
	
	 
	
	 

 (PLEASE PRINT OR TYPE NAME
AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE) 

  
 14 

 the within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and
appoint                              attorney to transfer the said Security on the books of the
Company, with full power of substitution in the premises. 
 Dated:
                                 

 

	
	   

	
	   

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the
within instrument in every particular, without alteration or enlargement or any change whatever. 

  
 15

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