Document:

Exhibit 10.1

 

	 
	Sol-Gel Technologies Ltd.
	2014 Share Incentive Plan
	 

 

Unless otherwise defined, terms used herein shall have the
meaning ascribed to them in Section 2 hereof.

  

		I.	PURPOSE; TYPES OF AWARDS; CONSTRUCTION.

 

A.           Purpose.
The purpose of this 2014 Share Incentive Plan (as amended, this “Plan”) is to afford an incentive to Service
Providers of Sol-Gel Technologies Ltd., an Israeli company (together with any successor corporation thereto, the “Company”),
or any Affiliate of the Company, which now exists or hereafter is organized or acquired by the Company or its Affiliates, to continue
as Service Providers, to increase their efforts on behalf of the Company or its Affiliates and to promote the success of the Company's
business, by providing such Service Providers with opportunities to acquire a proprietary interest in the Company by the issuance
of Shares or restricted Shares (“Restricted Shares”) of the Company, and by the grant of options to purchase
Shares (“Options”), Restricted Share Units (“RSUs”) and other Share-based Awards pursuant
to Sections ‎11 through ‎13 of this Plan.

 

B.           Types
of Awards. This Plan is intended to enable the Company to issue Awards under various tax regimes, including:

 

(i)          pursuant
and subject to the provisions of Section 102 of the Ordinance (or the corresponding provision of any subsequently enacted statute,
as amended from time to time), and all regulations and interpretations adopted by any competent authority, including the Israeli
Income Tax Authority (the “ITA”), including the Income Tax Rules (Tax Benefits in Stock Issuance to Employees)
5763-2003 or such other rules so adopted from time to time (the “Rules”) (such Awards that are intended to be
(as set forth in the Award Agreement) and which qualify as such under Section 102 of the Ordinance and the Rules, “102
Awards”);

 

(ii)         pursuant
to Section 3(9) of the Ordinance or the corresponding provision of any subsequently enacted statute, as amended from time to time
(such Awards, “3(9) Awards”);

 

(iii)        Incentive
Stock Options within the meaning of Section 422 of the Code, or the corresponding provision of any subsequently enacted United
States federal tax statute, as amended from time to time, to be granted to Employees who are deemed to be residents of the United
States, for purposes of taxation, or are otherwise subject to U.S. Federal income tax (such Awards that are intended to be (as
set forth in the Award Agreement) and which qualify as an incentive stock option within the meaning of Section 422(b) of the Code,
“Incentive Stock Options”); and

 

(iv)        Awards
not intended to be (as set forth in the Award Agreement) or which do not qualify as an Incentive Stock Option to be granted to
Service Providers who are deemed to be residents of the United States for purposes of taxation, or are otherwise subject to U.S.
Federal income tax (“Nonqualified Stock Options”).

 

In addition to the issuance of Awards under the relevant tax
regimes in the United States of America and the State of Israel, and without derogating from the generality of Section ‎25,
this Plan contemplates issuances to Grantees in other jurisdictions or under other tax regimes with respect to which the Committee
is empowered, but is not required, to make the requisite adjustments in this Plan and set forth the relevant conditions in an appendix
to this Plan or in the Company’s agreement with the Grantee in order to comply with the requirements of such other tax regimes.

 

C.           Company
Status. This Plan contemplates the issuance of Awards by the Company, both as a private and public company.

 

     

     

    

 

D.           Construction.
To the extent any provision herein conflicts with the conditions of any relevant tax law, rule or regulation which are relied upon
for tax relief in respect of a particular Award to a Grantee, the Committee is empowered, but is not required, hereunder to determine
that the provisions of such law, rule or regulation shall prevail over those of this Plan and to interpret and enforce such prevailing
provisions.

 

		II.	DEFINITIONS.

 

A.           Terms
Generally. Except when otherwise indicated by the context, (i) the singular shall include the plural and the plural shall
include the singular; (ii) any pronoun shall include the corresponding masculine, feminine and neuter forms; (iii) any definition
of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument
or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such
amendments, restatements, supplements or modifications set forth therein or herein), (iv) references to any law, constitution,
statute, treaty, regulation, rule or ordinance, including any section or other part thereof shall refer to it as amended from time
to time and shall include any successor thereof, (v) reference to a “company” or “entity” shall include
a, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency
or political subdivision thereof, and reference to a “person” shall mean any of the foregoing or an individual, (vi)
the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed
to refer to this Plan in its entirety, and not to any particular provision hereof, (vii) all references herein to Sections
shall be construed to refer to Sections to this Plan; (viii) the words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”; and (ix) use of the term “or” is not
intended to be exclusive.

 

B.           Defined
Terms. The following terms shall have the meanings ascribed to them in this Section 2:

 

C.           “Affiliate”
shall mean, (i) with respect to any person, any other person that, directly or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, such person (with the term “control” or “controlled by”
within the meaning of Rule 405 of Regulation C under the Securities Act), including, without limitation, any Parent or Subsidiary,
or (ii) for the purpose of 102 Awards, “Affiliate” shall only mean an “employing company” within
the meaning and subject to the conditions of Section 102(a) of the Ordinance.

 

D.           
“Applicable Law” shall mean any applicable law, rule, regulation, statute, pronouncement, policy, interpretation,
judgment, order or decree of any federal, provincial, state or local governmental, regulatory or adjudicative authority or agency,
of any jurisdiction, and the rules and regulations of any stock exchange, over-the-counter market or trading system on which the
Company's shares are then traded or listed.

 

E.           “Award”
shall mean any Option, Restricted Share, RSUs or any other Share-based award granted under this Plan.

 

F.           “Board”
shall mean the Board of Directors of the Company.

 

G.           “Change
of Control” shall mean for purposes of this Plan, an event described in paragraphs (i), (ii), (iii) or (iv) below:

 

(i)          A
transaction or series of transactions (other than an offering of Shares to the general public through a registration statement
filed with the Securities and Exchange Commission) resulting in the acquisition by any Person of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 30% of the total combined voting power of the then outstanding
Shares; provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change of
Control:

 

(1)         Any
acquisition directly from the Company;

 

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(2)         Any
acquisition by the Company or by any affiliate (as defined in Rule 405 under the Securities Act) of the Company;

 

(3)         Any
acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled
by the Company; or

 

(4)         Any
acquisition by any corporation pursuant to a transaction which complies with clauses (1) and (2) of subsection (ii) below.

 

(ii)         The
consummation of a reorganization, merger or consolidation involving the Company or its Subsidiaries, or a sale or other disposition
of all or substantially all of the assets of the Company and its Subsidiaries on a consolidated basis (a “Business Combination”),
in each case, unless, following such Business Combination:

 

(1)         All
or substantially all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Shares immediately
prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then outstanding voting securities
entitled to vote generally in the election of directors of the Company or its successor (including, without limitation, an entity
which as a result of such transaction owns the Company or all or substantially all of the assets of the Company either directly
or through one or more Subsidiaries); and

 

(2)         No
Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the
Company or its successor resulting from such Business Combination) beneficially owns, directly or indirectly, more than 30% of
the then outstanding voting securities of the Company or its successor (including, without limitation, an entity which as a result
of such transaction owns the Company or all or substantially all of the assets of the Company either directly or through one or
more Subsidiaries) except to the extent that such ownership existed prior to the Business Combination.

 

(iii)        The
Incumbent Directors cease for any reason to constitute a majority of the Board.

 

(iv)        The
date which is 10 business days prior to the completion of a liquidation or dissolution of the Company.

 

(v)         For
purposes of this definition of Change in Control only:

 

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

 

(2)         “Incumbent
Directors” means, for any period of 12 consecutive months, individuals who, at the beginning of such period, constitute
the Board together with any new director(s) (other than a director designated by a Person who shall have entered into an agreement
with the Company to effect a transaction described in paragraphs (i) or (ii) above) whose election or nomination for election to
the Board was approved by a vote of at least a majority (either by a specific vote or by approval of the proxy statement of the
Company in which such Person is named as a nominee for director without objection to such nomination) of the directors then still
in office who either were directors at the beginning of the 12-month period or whose election or nomination for election was previously
so approved. No individual initially elected or nominated as a director of the Company as a result of an actual or threatened election
contest with respect to directors or as a result of any other actual or threatened solicitation of proxies by or on behalf of any
Person other than the Board shall be an Incumbent Director.

 

(3) “Person” means an
individual, entity or group (within the meaning of Section I3(d)(3) or 14(d)(2) of the Exchange Act).

 

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(4)         “Shares”
means the Company's Ordinary Shares, or any shares substituted for such Ordinary Shares, which the Company is currently authorized
to issue or may in the future be authorized to issue.

 

(5)         “Subsidiary”
means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than
the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of
stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described
in item (i)(4) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled
to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners
or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed
in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships
or limited liability companies.

 

H.           “Code”
shall mean the United States Internal Revenue Code of 1986, and any applicable regulations promulgated thereunder, all as amended.

 

I.           “Committee”
shall mean a committee established or appointed by the Board to administer this Plan, subject to Section ‎3.1.

 

J.           “Companies
Law” shall mean the Israel Companies Law, 5759-1999, and the regulations promulgated thereunder, all as amended from
time to time.

 

K.          “Controlling
Shareholder” shall have the meaning set forth in Section 32(9) of the Ordinance.

 

L.           “Disability”
shall mean (i) the inability of a Grantee to engage in any substantial gainful activity or to perform the major duties of the Grantee’s
position with the Company or its Affiliates by reason of any medically determinable physical or mental impairment which has lasted
or can be expected to last for a continuous period of not less than 12 months (or such other period as determined by the Committee),
as determined by a qualified doctor acceptable to the Company, (ii) if applicable, a “permanent and total disability”
as defined in Section 22(e)(3) of the Code or Section 409A(a)(2)(c)(i) of the Code, as amended from time to time, or (iii) as defined
in a policy of the Company that the Committee deems applicable to this Plan, or that makes reference to this Plan, for purposes
of this definition.

 

M.       “Employee”
shall mean any person treated as an employee (including an officer or a director who is also treated as an employee) in the records
of the Company or any of its Affiliates (and in the case of 102 Awards, subject to Section ‎9.3 or in the case of Incentive
Stock Options, who is an employee for purposes of Section 422 of the Code); provided, however, that neither service as a director
nor payment of a director’s fee shall be sufficient to constitute employment for purposes of this Plan. The Company shall
determine in good faith and in the exercise of its discretion whether an individual has become or has ceased to be an Employee
and the effective date of such individual’s employment or termination of employment, as the case may be. For purposes of
a person’s rights, if any, under this Plan as of the time of the Company’s determination, all such determinations by
the Company shall be final, binding and conclusive, notwithstanding that the Company or any court of law or governmental agency
subsequently makes a contrary determination.

 

N.           “employment”,
“employed” and words of similar import shall be deemed to refer to the employment of Employees or to the services
of any other Service Provider, as the case may be.

 

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O.           “exercise”
“exercised” and words of similar import, when referring to an Award that does not require exercise or that is
settled upon vesting (such as may be the case with RSUs or Restricted Shares, if so determined in their terms), shall be deemed
to refer to the vesting of such an Award (regardless of whether or not the wording included reference to vesting of such an Awards
explicitly).

 

P.           “Exercise
Period” shall mean the period, commencing on the date of grant of an Award, during which an Award shall be exercisable,
subject to any vesting provisions thereof (including any acceleration thereof, if any) and subject to the termination provisions
hereof.

 

Q.           “Exercise
Price” shall mean the exercise price for each Share covered by an Option or the purchase price for each Share covered
by any other Award.

 

R.           “Fair
Market Value” shall mean, as of any date, the value of a Share or other property as determined by the Board, in its discretion,
subject to the following: (i) if, on such date, the Shares are listed on any securities exchange, the average closing sales price
per Share on which the Shares are principally traded over the thirty (30) day calendar period preceding the subject date (utilizing
all trading days during such 30 calendar day period), as reported in The Wall Street Journal or such other source as the Company
deems reliable; (ii) if, on such date, the Shares are then quoted in an over-the-counter market, the average of the closing bid
and asked prices for the Shares in that market during the thirty (30) day calendar period preceding the subject date (utilizing
all trading days during such 30 calendar day period), as reported in The Wall Street Journal or such other source as the Company
deems reliable; (iii) if, on such date, the Shares are not then listed on a securities exchange or quoted in an over-the-counter
market, or in case of any other property, such value as the Committee, in its sole discretion, shall determine, with full authority
to determine the method for making such determination and which determination shall be conclusive and binding on all parties, and
shall be made after such consultations with outside legal, accounting and other experts as the Committee may deem advisable; provided,
however, that, if applicable, the Fair Market Value of the Shares shall be determined in a manner that satisfies the applicable
requirements of and subject to Section 409A of the Code, and with respect to Incentive Stock Options, in a manner that satisfies
the applicable requirements of and subject to Section 422 of the Code, subject to Section 422(c)(7) of the Code. The Committee
shall maintain a written record of its method of determining such value. If the Shares are listed or quoted on more than one established
stock exchange or over-the-counter market, the Committee shall determine the principal such exchange or market and utilize the
price of the Shares on that exchange or market (determined as per the method described in clauses (i) or (ii) above, as applicable)
for the purpose of determining Fair Market Value.

 

S.           “Grantee”
shall mean a person who has been granted an Award(s) under this Plan.

 

T.           “Ordinance”
shall mean the Israeli Income Tax Ordinance (New Version) 1961, and the regulations and rules (including the Rules) promulgated
thereunder, all as amended from time to time.

 

U.           “Parent”
shall mean any company (other than the Company), which now exists or is hereafter organized, (i) in an unbroken chain of companies
ending with the Company if, at the time of granting an Award, each of the companies (other than the Company) owns stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other companies in such chain,
or (ii) if applicable and for purposes of Incentive Stock Options, that is a “parent corporation” of the Company, as
defined in Section 424(e) of the Code.

 

V.         “Retirement”
shall mean a Grantee's retirement pursuant to Applicable Law or in accordance with the terms of any tax-qualified retirement plan
maintained by the Company or any of its Affiliates in which the Grantee participates or is subject to.

 

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W.         “Securities
Act” shall mean the U.S. Securities Act of 1933, and the rules and regulations promulgated thereunder, all as amended
from time to time.

 

X.           “Service
Provider” shall mean an Employee, director, officer, consultant, advisor and any other person or entity who provides
services to the Company or any Parent, Subsidiary or Affiliate thereof. Service Providers shall include prospective Service Providers
to whom Awards are granted in connection with written offers of an employment or other service relationship with the Company or
any Parent, Subsidiary or any Affiliates thereof, provided however that such employment or service shall have actually commenced.

 

Y.           
“Shares” shall mean Ordinary Shares, par value NIS 0.10 of the Company (as adjusted for stock split, reverse
stock split, bonus shares, combination or other recapitalization events), or shares of such other class of shares of the Company
as shall be designated by the Board in respect of the relevant Award(s). “Shares” include any securities or property
issued or distributed with respect thereto.

 

Z.           “Subsidiary”
shall mean any corporation (other than the Company), which now exists or is hereafter organized or acquired by the Company, (i)
in an unbroken chain of corporations beginning with the Company if, at the time of granting an Award, each of the corporations
other than the last corporations in the unbroken chain owns stock possessing more than fifty percent (50%) of the total combined
voting power of all classes of stock in one of the other companies in such chain, or (ii) if applicable and for purposes of Incentive
Stock Options, that is a “subsidiary corporation” of the Company, as defined in Section 424(f) of the Code.

 

AA.          “Ten
Percent Shareholder” shall mean a Grantee who, at the time an Award is granted to the Grantee, owns shares possessing
more than ten percent (10%) of the total combined voting power of all classes of shares of the Company or any Parent or Subsidiary,
within the meaning of Section 422(b)(6) of the Code.

 

BB.          “Trustee”
shall mean the trustee appointed by the Committee to hold the Awards (and, in relation with 102 Awards, approved by the ITA), if
so appointed.

 

CC.          Other
Defined Terms. The following terms shall have the meanings ascribed to them in the Sections set forth below:

 

	Term	Section
	102 Awards	‎1.2‎(i)
	102 Capital Gains Track Awards	‎9.1
	102 Non-Trustee Awards	‎9.2
	102 Ordinary Income Track Awards	‎9.1
	102 Trustee Awards	‎9.1
	3(9) Awards	‎1.2‎(ii)
	Award Agreement	‎6
	Cause	‎6.6.4.4
	Company	‎1.1
	Effective Date	‎24.1
	Election	‎9.2
	Eligible 102 Grantees	‎9.3.1
	Incentive Stock Options	‎1.2(iii)

 

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        ITA
	‎1.1‎(i) 
	Market Stand-Off	‎17.1
	Market Stand-Off Period	‎17.1
	 	 
	Nonqualified Stock Options	‎1.2‎(iv) 
	Plan	‎1.1
	Recapitalization	‎14.1
	Required Holding Period	‎9.5
	Restricted Period	‎11.2
	Restricted Share Agreement	‎11
	Restricted Share Unit Agreement	‎12
	Restricted Shares	‎1.1
	RSUs	‎1.1
	Rules	‎1.1‎(i)
	Securities	‎17.1
	Successor Corporation	‎14.2.1
	Withholding Obligations	‎18.5

 

		III.	ADMINISTRATION.

 

A.           To
the extent permitted under Applicable Law, the Articles of Association and any other governing document of the Company, this Plan
shall be administered by the Committee. In the event that the Board does not appoint or establish a committee to administer this
Plan, this Plan shall be administered by the Board. In the event that an action necessary for the administration of this Plan is
required under Applicable Law to be taken by the Board without the right of delegation, or if such action or power was explicitly
reserved by the Board in appointing, establishing and empowering the Committee, then such action shall be so taken by the Board.
In any such event, all references herein to the Committee shall be construed as references to the Board. Even if such a Committee
was appointed or established, the Board may take any actions that are stated to be vested in the Committee, and shall not be restricted
or limited from exercising all rights, powers and authorities under this Plan or Applicable Law.

 

B.           The
Board shall appoint the members of the Committee, may from time to time remove members from, or add members to, the Committee,
and shall fill vacancies in the Committee, however caused, provided that the composition of the Committee shall at all times be
in compliance with any mandatory requirements of Applicable Law, the Articles of Association and any other governing document of
the Company. The Committee may select one of its members as its Chairman and shall hold its meetings at such times and places as
it shall determine. The Committee may appoint a Secretary, who shall keep records of its meetings, and shall make such rules and
regulations for the conduct of its business as it shall deem advisable and subject to mandatory requirements of Applicable Law.

 

C.           Subject
to the terms and conditions of this Plan, any mandatory provisions of Applicable Law and any provisions of any Company policy required
under mandatory provisions of Applicable Law, and in addition to the Committee's powers contained elsewhere in this Plan, the Committee
shall have full authority, in its discretion, from time to time and at any time, to determine any of the following, or to recommend
to the Board any of the following if it is not authorized to take such action according to Applicable Law:

 

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(i)          eligible
Grantees,

 

(ii)         grants
of Awards and setting the terms and provisions of Award Agreements (which need not be identical) and any other agreements or instruments
under which Awards are made, including, but not limited to, the number of Shares underlying each Award and the class of Shares
underlying each Award (if more than one class was designated by the Board),

 

(iii)        the
time or times at which Awards shall be granted,

 

(iv)        the
terms, conditions and restrictions applicable to each Award (which need not be identical) and any Shares acquired upon the exercise
or (if applicable) vesting thereof, including, without limitation, (1) designating Awards under Section ‎1.2; (2) the vesting
schedule, the acceleration thereof and terms and conditions upon which Awards may be exercised or become vested, (3) the Exercise
Price, (4) the method of payment for Shares purchased upon the exercise or (if applicable) vesting of the Awards, (5) the method
for satisfaction of any tax withholding obligation arising in connection with the Awards or such Shares, including by the withholding
or delivery of Shares, (6) the time of the expiration of the Awards, (7) the effect of the Grantee’s termination of employment
with the Company or any of its Affiliates, and (8) all other terms, conditions and restrictions applicable to the Award or the
Shares not inconsistent with the terms of this Plan,

 

(v)         to
accelerate, continue, extend or defer the exercisability of any Award or the vesting thereof, including with respect to the period
following a Grantee’s termination of employment or other service,

 

(vi)        the
interpretation of this Plan and any Award Agreement and the meaning, interpretation and applicability of terms referred to in Applicable
Laws,

 

(vii)       policies,
guidelines, rules and regulations relating to and for carrying out this Plan, and any amendment, supplement or rescission thereof,
as it may deem appropriate,

 

(viii)      to
adopt supplements to, or alternative versions of, this Plan, including, without limitation, as it deems necessary or desirable
to comply with the laws of, or to accommodate the tax regime or custom of, foreign jurisdictions whose citizens or residents may
be granted Awards,

 

(ix)         the
Fair Market Value of the Shares or other property,

 

(x)          the
tax track (capital gains, ordinary income track or any other track available under the Section 102 of the Ordinance) for the purpose
of 102 Awards,

 

(xi)         the
authorization and approval of conversion, substitution, cancellation or suspension under and in accordance with this Plan of any
or all Awards or Shares,

 

(xii)        the
amendment, modification, waiver or supplement of the terms of each outstanding Award (with the consent of the applicable Grantee,
if such amendments refers to the increase of the Exercise Price of Awards or reduction of the number of Shared underlying an Award
(but, in each case, other than as a result of an adjustment or exercise of rights in accordance with Section ‎14)) unless otherwise
provided under the terms of this Plan,

 

(xiii)       without
limiting the generality of the foregoing, and subject to the provisions of Applicable Law, to grant to a Grantee, who is the holder
of an outstanding Award, in exchange for the cancellation of such Award, a new Award having an Exercise Price lower than that provided
in the Award so canceled and containing such other terms and conditions as the Committee may prescribe in accordance with the provisions
of this Plan or to set a new Exercise Price for the same Award lower than that previously provided in the Award,

 

(xiv)      to
correct any defect, supply any omission or reconcile any inconsistency in this Plan or any Award Agreement and all other determinations
and take such other actions with respect to this Plan or any Award as it may deem advisable to the extent not inconsistent with
the provisions of this Plan or Applicable Law, and

 

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(xv)       any
other matter which is necessary or desirable for, or incidental to, the administration of this Plan and any Award thereunder.

 

D.           The
authority granted hereunder includes the authority to modify Awards to eligible individuals who are foreign nationals or are individuals
who are employed outside Israel to recognize differences in local law, tax policy or custom, in order to effectuate the purposes
of this Plan but without amending this Plan.

 

E.           The
Board and the Committee shall be free at all times to make such determinations and take such actions as they deem fit. The Board
and the Committee need not take the same action or determination with respect to all Awards, with respect to certain types of Awards,
with respect to all Service Providers or any certain type of Service Providers and actions and determinations may differ as among
the Grantees, and as between the Grantees and any other holders of securities of the Company.

 

F.           All
decisions, determinations, and interpretations of the Committee, the Board and the Company under this Plan shall be final and binding
on all Grantees (whether before or after the issuance of Shares pursuant to Awards), unless otherwise determined by the Committee,
the Board or the Company, respectively. The Committee shall have the authority (but not the obligation) to determine the interpretation
and applicability of Applicable Laws to any Grantee or any Awards. No member of the Committee or the Board shall be liable to any
Grantee for any action taken or determination made in good faith with respect to this Plan or any Award granted hereunder.

 

G.           Any
officer or authorized signatory of the Company shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, determination or election which is the responsibility of or which is allocated to the Company herein, provided
such person has apparent authority with respect to such matter, right, obligation, determination or election. Such person or authorized
signatory shall not be liable to any Grantee for any action taken or determination made in good faith with respect to this Plan
or any Award granted hereunder.

 

		IV.	ELIGIBILITY.

 

A.           Awards
may be granted to Service Providers of the Company or any Affiliate thereof, taking into account, at the Committee’s discretion
and without an obligation to do so, the qualification under each tax regime pursuant to which such Awards are granted, subject
to the limitation on the granting of Incentive Stock Options set forth in Section ‎8.1. A person who has been granted an Award
hereunder may be granted additional Awards, if the Committee shall so determine, subject to the limitations herein. However, eligibility
in accordance with this Section ‎4 shall not entitle any person to be granted an Award, or, having been granted an Award, to
be granted an additional Award.

 

B.           Awards
may differ in number of Shares covered thereby, the terms and conditions applying to them or on the Grantees or in any other respect
(including, that there should not be any expectation (and it is hereby disclaimed) that a certain treatment, interpretation or
position granted to one shall be applied to the other, regardless of whether or not the facts or circumstances are the same or
similar).

 

		V.	SHARES.

 

A.           The
maximum aggregate number of Shares that may be issued pursuant to Awards under this Plan (the “Pool”) shall
initially be ____________ authorized but unissued Shares (except and as adjusted pursuant to Section ‎14.1 of this Plan), or
such other number as the Board may determine from time to time (without the need to amend the Plan in case of such determination).
However, except as adjusted pursuant to Section ‎14.1, in no event shall more than such number of Shares included in the Pool,
as adjusted in accordance with Section ‎5.2, be available for issuance pursuant to the exercise of Incentive Stock Options.

 

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B.           Any
Shares (a) underlying an Award granted hereunder that has expired, or was cancelled, terminated, forfeited or, repurchased or settled
in cash in lieu of issuance of Shares, for any reason, without having been exercised; (b) if permitted by the Company, tendered
to pay the Exercise Price of an Award, or withholding tax obligations with respect to an Award; or (c) if permitted by the Company,
subject to an Award that are not delivered to a Grantee because such Shares are withheld to pay the Exercise Price of such Award,
or withholding tax obligations with respect to such Award; shall automatically, and without any further action on the part of the
Company or any Grantee, again be available for grant of Awards and Shares issued upon exercise of (if applicable) vesting thereof
for the purposes of this Plan (unless this Plan shall have been terminated) or unless the Board determines otherwise. Such Shares
may, in whole or in part, be authorized but unissued Shares, treasury shares (dormant shares) or Shares otherwise that shall have
been or may be repurchased by the Company (to the extent permitted pursuant to the Companies Law).

 

C.           Any
Shares under the Pool that are not subject to outstanding or exercised Awards at the termination of this Plan shall cease to be
reserved for the purpose of this Plan.

 

		VI.	TERMS AND CONDITIONS OF AWARDS.

 

Each Award granted pursuant to this Plan shall be evidenced
by a written or electronic agreement between the Company and the Grantee or a written or electronic notice delivered by the Company
(the “Award Agreement”), in substantially such form or forms and containing such terms and conditions, as the
Committee shall from time to time approve. The Award Agreement shall comply with and be subject to the following general terms
and conditions and the provisions of this Plan (except for any provisions applying to Awards under different tax regimes), unless
otherwise specifically provided in such Award Agreement, or the terms referred to in other Sections of this Plan applying to Awards
under such applicable tax regimes, or terms prescribed by Applicable Law. Award Agreements need not be in the same form and may
differ in the terms and conditions included therein.

 

A.           Number
of Shares. Each Award Agreement shall state the number of Shares covered by the Award.

 

B.           Type
of Award. Each Award Agreement may state the type of Award granted thereunder, provided that the tax treatment of any Award,
whether or not stated in the Award Agreement, shall be as determined in accordance with Applicable Laws.

 

C.           Exercise
Price. Each Award Agreement shall state the Exercise Price, if applicable. Unless otherwise set forth in this Plan, an Exercise
Price of an Award of less than the par value of the Shares shall comply with Section 304 of the Companies Law, 1999, as amended.
Subject to Sections 3 ‎7.2 and ‎8.2 and to the foregoing, the Committee may reduce the Exercise Price of any outstanding
Award, on terms and subject to such conditions as it deems advisable. The Exercise Price shall also be subject to adjustment as
provided in Section ‎14 hereof.

 

    	 	- 10 -	 

     

    

 

D.         Manner
of Exercise. An Award may be exercised, as to any or all Shares as to which the Award has become exercisable, by written notice
delivered in person or by mail (or such other methods of delivery prescribed by the Company) to the Chief Financial Officer of
the Company or to such other person as determined by the Committee, or in any other manner as the Committee shall prescribe from
time to time, specifying the number of Shares with respect to which the Award is being exercised (which may be equal to or lower
than the aggregate number of Shares that have become exercisable at such time, subject to the last sentence of this Section), accompanied
by payment of the aggregate Exercise Price for such Shares in the manner specified in the following sentence. The Exercise Price
shall be paid in full with respect to each Share, at the time of exercise, either in (i) cash, (ii) if the Company’s shares
are listed for trading on any securities exchange or over-the-counter market, and if the Committee so determines, all or part of
the Exercise Price and any withholding taxes may be paid by the 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, (iii) if the Company’s shares are listed for trading on any securities exchange or over-the-counter
market, and if the Committee so determines, all or part of the Exercise Price and any withholding taxes may be paid by the delivery
(on a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by
the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company or the Trustee, or (iv) in
such other manner as the Committee shall determine, which may include procedures for cashless exercise. For as long as the Company’s
shares are not listed for trading on any securities exchange or over-the-counter market and unless the Committee determines otherwise,
a Grantee may not exercise Awards unless the aggregate Exercise Price thereof is equal to or in excess of the lower of: (a) the
aggregate Exercise Price for all Shares as to which the Award has become exercisable at such time; or (b) US$2,000.

 

E.           Term
and Vesting of Awards.

 

1.          Each
Award Agreement shall provide the vesting schedule for the Award as determined by the Committee. The Committee shall have the authority
to determine the vesting schedule and accelerate the vesting of any outstanding Award at such time and under such circumstances
as it, in its sole discretion, deems appropriate. Unless otherwise resolved by the Committee and stated in the Award Agreement,
and subject to Sections ‎6.6 and ‎6.7 hereof, Awards shall vest and become exercisable under the following schedule: twenty-five
percent (25%) of the Shares covered by the Award, on the first anniversary of the vesting commencement date determine by the Committee
(and in the absence of such determination, of date on which such Award was granted), and six and one-quarter percent (6.25%) of
the Shares covered by the Award at the end of each subsequent three-month period thereafter over the course of the following three
(3) years; provided that the Grantee remains continuously as a Service Provider of the Company or its Affiliates throughout such
vesting dates.

 

2.          The
Award Agreement may contain performance goals and measurements (which, in case of 102 Awards, shall, if then required, be subject
to obtaining a specific tax ruling or determination from the ITA), and the provisions with respect to any Award need not be the
same as the provisions with respect to any other Award. Such performance goals may include, but are not limited to, sales, earnings
before interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any
of the foregoing, as determined by the Committee. The Committee may adjust performance goals pursuant to Awards previously granted
to take into account changes in law and accounting and tax rules and to make such adjustments as the Committee deems necessary
or appropriate to reflect the inclusion or the exclusion of the impact of extraordinary or unusual items, events or circumstances.

 

    	 	- 11 -	 

     

    

 

3.          The
Exercise Period of an Award will be ten (10) years from the date of grant of the Award, unless otherwise determined by the Committee
and stated in the Award Agreement, but subject to the vesting provisions described above and the early termination provisions set
forth in Sections ‎6.6 and ‎6.7 hereof. At the expiration of the Exercise Period, any Award, or any part thereof, that
has not been exercised within the term of the Award and the Shares covered thereby not paid for in accordance with this Plan and
the Award Agreement shall terminate and become null and void, and all interests and rights of the Grantee in and to the same shall
expire.

 

F.           Termination.

 

1.          Unless
otherwise determined by the Committee, and subject to Section ‎6.7 hereof, an Award may not be exercised unless the Grantee
is then a Service Provider of the Company or an Affiliate thereof or, in the case of an Incentive Stock Option, a company or a
parent or subsidiary company of such company issuing or assuming the Option in a transaction to which Section 424(a) of the Code
applies, and unless the Grantee has remained continuously so employed since the date of grant of the Award and throughout the vesting
dates.

 

    	 	- 12 -	 

     

    

 

2.          In
the event that the employment or service of a Grantee shall terminate (other than by reason of death, Disability or Retirement),
all Awards of such Grantee that are unvested at the time of such termination shall terminate on the date of such termination, and
all Awards of such Grantee that are vested and exercisable at the time of such termination may be exercised within up to three
(3) months after the date of such termination (or such different period as the Committee shall prescribe), but in any event no
later than the date of expiration of the Award’s term as set forth in the Award Agreement or pursuant to this Plan; provided,
however, that if the Company (or the Subsidiary or Affiliate, when applicable) shall terminate the Grantee’s employment or
service for Cause (as defined below) or if at any time during the Exercise Period (whether prior to and after termination of employment
or service, and whether or not the Grantee’s employment or service is terminated by either party as a result thereof), facts
or circumstances arise or are discovered with respect to the Grantee that would have constituted Cause, all Awards theretofore
granted to such Grantee (whether vested or not) shall, to the extent not theretofore exercised, terminate on the date of such termination
(or on such subsequent date on which such facts or circumstances arise or are discovered, as the case may be) unless otherwise
determined by the Committee; and any Shares issued upon exercise or (if applicable) vesting of Awards (including other Shares or
securities issued or distributed with respect thereto), whether held by the Grantee or by the Trustee for the Grantee’s benefit,
shall be deemed to be irrevocably offered for sale to the Company, any of its Affiliates or any person designated by the Company
to purchase, at the Company’s election and subject to Applicable Law, either for no consideration, for the par value of such
Shares or against payment of the Exercise Price previously received by the Company for such Shares upon their issuance, as the
Committee deems fit, upon written notice to the Grantee at any time after the Grantee’s termination of employment or service.
Such Shares or other securities shall be sold and transferred within 30 days from the date of the Company’s notice of its
election to exercise its right. If the Grantee fails to transfer such Shares or other securities to the Company, the Company, at
the decision of the Committee, shall be entitled to forfeit or repurchase such Shares and to authorize any person to execute on
behalf of the Grantee any document necessary to effect such transfer, whether or not the share certificates are surrendered. The
Company shall have the right and authority to affect the above either by: (i) repurchasing all of such Shares or other securities
held by the Grantee or by the Trustee for the benefit of the Grantee, or designate any other person who shall have the right and
authority to purchase all of Such Shares or other securities, for the Exercise Price paid for such Shares, the par value of such
Shares or for no payment or consideration whatsoever, as the Committee deems fit; (ii) forfeiting all such Shares or other securities;
(iii) redeeming all such Shares or other securities, for the Exercise Price paid for such Shares, the par value of such Shares
or for no payment or consideration whatsoever, as the Committee deems fit; (iv) taking action in order to have such Shares or other
securities converted into deferred shares entitling their holder only to their par value upon liquidation of the Company; or (v)
taking any other action which may be required in order to achieve similar results; all as shall be determined by the Committee,
at its sole and absolute discretion, and the Grantee is deemed to irrevocably empower the Company or any person which may be designated
by it to take any action by, in the name of or on behalf of the Grantee to comply with and give effect to such actions (including,
voting such shares, filling in, signing and delivering share transfer deeds, etc.).

 

    	 	- 13 -	 

     

    

 

3.            Without
derogating from the above, the Committee may determine, in its discretion, that any Grantee whose employment with or service to
the Company or an Affiliate thereof (or, in the case of an Incentive Stock Option, a company or a parent or subsidiary company
of such company issuing or assuming the Awards in a transaction to which Section 424(a) of the Code), has or shall terminate for
any reason, shall be deemed to have irrevocably offered to the Company and any of its Affiliates (or any other person designated
by the Company) to purchase all or part of the Shares issued pursuant to the exercise or (if applicable) the vesting of an Award
(including other Shares or securities issued or distributed with respect thereto), whether held by the Grantee or by the Trustee
for the Grantee’s benefit, in consideration for the Fair Market Value of such Shares or other consideration as shall be determined
by the Committee, and subject to Applicable Law. In the event that such Shares are not purchased as set forth above, any subsequent
sale or disposition thereof shall be subject to provisions of this Plan and the Company’s Article of Association.

 

4.            Notwithstanding
anything to the contrary, the Committee, in its absolute discretion, may, on such terms and conditions as it may determine appropriate,
extend the periods for which Awards held by any Grantee may continue to vest and be exercisable; it being clarified that such Awards
may lose their entitlement to certain tax benefits under Applicable Law as a result of the modification of such Awards and/or in
the event that the Award is exercised beyond the later of: (i) three (3) months after the date of termination of the employment
or service relationship; or (ii) the applicable period under Section ‎6.7 below with respect to a termination of the employment
or service relationship because of the death, Disability or Retirement of Grantee.

 

5.            For
purposes of this Plan:

 

a.           a
termination of employment or service of a Grantee shall not be deemed to occur (except to the extent required by the Code with
respect to the Incentive Stock Option status of an Option) in case of (i) a transition or transfer of a Grantee among the Company
and its Affiliates, (ii) a change in the capacity in which the Grantee is employed or renders service to the Company or any of
its Affiliates or a change in the identity of the employing or engagement entity among the Company and its Affiliates, provided,
in case of (i) and (ii) above, that the Grantee has remained continuously employed by and/or in the service of the Company and
its Affiliates since the date of grant of the Award and throughout the vesting period; or (iii) if the Grantee takes any unpaid
leave as set forth in Section ‎6.8(i) below.

 

b.           An
entity or an Affiliate thereof assuming an Award or issuing in substitution thereof in a transaction to which Section 424(a) of
the Code applies or in the event of a Change of Control in accordance with Section ‎14 shall be deemed as an Affiliate of the
Company for purposes of this Section ‎6.6, unless the Committee determines otherwise.

 

c.           In
the case of a Grantee whose principal employer or service recipient is a Subsidiary or Affiliate, the Grantee’s employment
shall also be deemed terminated for purposes of this Section 6.6 as of the date on which such principal employer or service recipient
ceases to be a Subsidiary or Affiliate.

 

    	 	- 14 -	 

     

    

 

d.           The
term “Cause” shall mean (irrespective of, and in addition to, any definition included in any other agreement
or instrument applicable to the Grantee, and unless otherwise determined by the Committee) any of the following: (i) any theft,
fraud, embezzlement, dishonesty, willful misconduct, breach of fiduciary duty for personal profit, falsification of any documents
or records of the Company or any of its Affiliates, felony or similar act by the Grantee (whether or not related to the Grantee’s
relationship with the Company); (ii) an act of moral turpitude by the Grantee, or any act that causes significant injury to, or
is otherwise adversely affecting, the reputation, business, assets, operations or business relationship of the Company (or a Subsidiary
or Affiliate, when applicable); (iii) any breach by the Grantee of any material agreement with or of any material duty of the Grantee
to the Company or any Subsidiary or Affiliate thereof (including breach of confidentiality, non-disclosure, non-use non-competition
or non-solicitation covenants towards the Company or any of its Affiliates) or failure to abide by code of conduct or other policies
(including, without limitation, policies relating to confidentiality and reasonable workplace conduct); or (iv) any act which constitutes
a breach of a Grantee’s fiduciary duty towards the Company or an Affiliate or Subsidiary, including disclosure of confidential
or proprietary information thereof or acceptance or solicitation to receive unauthorized or undisclosed benefits, irrespective
of their nature, or funds, or promises to receive either, from individuals, consultants or corporate entities that the Company
or a Subsidiary does business with; (v) the Grantee’s unauthorized use, misappropriation, destruction, or diversion of any
tangible or intangible asset or corporate opportunity of the Company or any of its Affiliates (including, without limitation, the
improper use or disclosure of confidential or proprietary information); or (vi) any circumstances that constitute grounds for termination
for cause under the Grantee’s employment or service agreement with the Company or Affiliate, to the extent applicable. For
the avoidance of doubt, the determination as to whether a termination is for Cause for purposes of this Plan, shall be made in
good faith by the Committee and shall be final and binding on the Grantee.

 

G.           Death,
Disability or Retirement of Grantee.

 

1.          If
a Grantee shall die while employed by, or performing service for, the Company or its Affiliates, or within the three (3) month
period (or such longer period of time as determined by the Board, in its discretion) after the date of termination of such Grantee's
employment or service (or within such different period as the Committee may have provided pursuant to Section ‎6.6 hereof),
or if the Grantee's employment or service shall terminate by reason of Disability, all Awards theretofore granted to such Grantee
may (to the extent otherwise vested and exercisable and unless earlier terminated in accordance with their terms) be exercised
by the Grantee or by the Grantee's estate or by a person who acquired the legal right to exercise such Awards by bequest or inheritance,
or by a person who acquired the legal right to exercise such Awards in accordance with applicable law in the case of Disability
of the Grantee, as the case may be, at any time within one (1) year (or such longer period of time as determined by the Committee,
in its discretion) after the death or Disability of the Grantee (or such different period as the Committee shall prescribe), but
in any event no later than the date of expiration of the Award’s term as set forth in the Award Agreement or pursuant to
this Plan. In the event that an Award granted hereunder shall be exercised as set forth above by any person other than the Grantee,
written notice of such exercise shall be accompanied by a certified copy of letters testamentary or proof satisfactory to the Committee
of the right of such person to exercise such Award.

 

2.          In
the event that the employment or service of a Grantee shall terminate on account of such Grantee's Retirement, all Awards of such
Grantee that are exercisable at the time of such Retirement may, unless earlier terminated in accordance with their terms, be exercised
at any time within the three (3) month period after the date of such Retirement (or such different period as the Committee shall
prescribe).

 

H.           Suspension
of Vesting. Unless the Committee provides otherwise, vesting of Awards granted hereunder shall be suspended during any unpaid
leave of absence, other than in the case of any (i) leave of absence which was pre-approved by the Company explicitly for purposes
of continuing the vesting of Awards, or (ii) transfers between locations of the Company or any of its Affiliates, or between the
Company and any of its Affiliates, or any respective successor thereof. For clarity, for purposes of this Plan, military leave,
statutory maternity or paternity leave or sick leave are not deemed unpaid leave of absence.

 

    	 	- 15 -	 

     

    

 

I.           Securities
Law Restrictions. Except as otherwise provided in the applicable Award Agreement or other agreement between the Service Provider
and the Company, if the exercise of an Award following the termination of the Service Provider’s employment or service (other
than for Cause) would be prohibited at any time solely because the issuance of Shares would violate the registration requirements
under the Securities Act or equivalent requirements under equivalent laws of other applicable jurisdictions, then the Award shall
remain exercisable and terminate on the earlier of (i) the expiration of a period of three (3) months (or such longer
period of time as determined by the Board, in its discretion) after the termination of the Service Provider’s employment
or service during which the exercise of the Award would not be in such violation, or (ii) the expiration of the term of the
Award as set forth in the Award Agreement or pursuant to this Plan. In addition, unless otherwise provided in a Grantee’s
Award Agreement, if the sale of any Shares received upon exercise or (if applicable) vesting of an Award following the termination
of the Grantee's employment or service (other than for Cause) would violate the Company’s insider trading policy, then the
Award shall terminate on the earlier of (i) the expiration of a period equal to the applicable post-termination exercise period
after the termination of the Grantee's employment or service during which the exercise of the Award would not be in violation of
the Company’s insider trading policy, or (ii) the expiration of the term of the Award as set forth in the applicable
Award Agreement or pursuant to this Plan.

 

J.           Voting
Proxy. Until immediately after the listing for trading on a stock exchange or market or trading system of the Company’s
(or the Successor Corporation’s) shares, the Shares subject to an Award or to be issued pursuant to an Award or any other
Securities, shall, unless otherwise determined by the Committee, be subject to an irrevocable proxy and power of attorney by the
Grantee or the Trustee (if so requested from the Trustee), as the case may be, to the Company, which shall designate such person
or persons (with a right of substitution) from time to time as determined by the Committee (and in the absence of such determination,
the CEO or Chairman of the Board, ex officio). The Trustee is deemed to be instructed by the Grantee to sign such proxy, as requested
by the Company. The proxy shall entitle the holder thereof to receive notices, vote and take such other actions in respect of the
Shares or other Securities. Any person holding or exercising such voting proxies shall do so solely in his capacity as the proxy
holder and not individually. All Awards granted hereunder shall be conditioned upon the execution of such irrevocable proxy in
substantially the form prescribed by the Committee from time to time. So long as any such Shares are subject to such irrevocable
proxy and power of attorney or held by a Trustee (and unless a proxy was given by the Trustee as aforesaid), (i) in any shareholders
meeting or written consent in lieu thereof, such Shares shall be voted by the proxy holder (or the Trustee, as applicable), unless
directed otherwise by the Board, in the same proportion as the result of the vote at the shareholders’ meeting (or written
consent in lieu thereof) in respect of which the Shares are being voted (whether an extraordinary or annual meeting, and whether
of the share capital as one class or of any class thereof), and (ii) or in any act or consent of shareholders under the Company’s
Articles of Association or otherwise, such Shares shall be cast by the proxy holder (or the Trustee, as applicable), unless directed
otherwise by the Board, in the same proportion as the result of the shareholders’ act or consent. The provisions of this
Section shall apply to the Grantee and to any purchaser, assignee or transferee of any Shares.

 

K.          Other
Provisions. The Award Agreement evidencing Awards under this Plan shall contain such other terms and conditions not inconsistent
with this Plan as the Committee may determine, at or after the date of grant, including provisions in connection with the restrictions
on transferring the Awards or Shares covered by such Awards, which shall be binding upon the Grantees and any purchaser, assignee
or transferee of any Awards, and other terms and conditions as the Committee shall deem appropriate.

 

    	 	- 16 -	 

     

    

 

		VII.	NONQUALIFIED STOCK OPTIONS.

 

A.           Awards
granted pursuant to this Section ‎7 are intended to constitute Nonqualified Stock Options and shall be subject to the general
terms and conditions specified in Section ‎6 hereof and other provisions of this Plan, except for any provisions of this Plan
applying to Awards under different tax laws or regulations. In the event of any inconsistency or contradictions between the provisions
of this Section ‎7 and the other terms of this Plan, this Section ‎7 shall prevail.

 

B.           Certain
Limitations on Eligibility for Nonqualified Stock Options. Nonqualified Stock Options may not be granted to a Service Provider
who is deemed to be a resident of the United States for purposes of taxation or who is otherwise subject to United States federal
income tax unless the Shares underlying such Options constitute “service recipient stock” under Section 409A of the
Code or unless such Options comply with the payment requirements of Section 409A of the Code.

 

C.           Exercise
Price. The Exercise Price of a Nonqualified Stock Option shall not be less than 100% of the Fair Market Value of a Share on
the date of grant of such Option unless the Committee specifically indicates that the Awards will have a lower Exercise Price and
the Award complies with Section 409A of the Code. Notwithstanding the foregoing, a Nonqualified Stock Option may be granted with
an exercise price lower than the minimum exercise price set forth above if such Award is granted pursuant to an assumption or substitution
for another option in a manner qualifying under the provisions of that complies with Section 424(a) of the Code1.409A-1(b)(5)(v)(D)
of the U.S. Treasury Regulations or any successor guidance.

 

		VIII.	INCENTIVE STOCK OPTIONS.

 

Awards granted pursuant to this Section 8 are intended to constitute
Incentive Stock Options and shall be granted subject to the following special terms and conditions, the general terms and conditions
specified in Section 6 hereof and other provisions of this Plan, except for any provisions of this Plan applying to Awards under
different tax laws or regulations. In the event of any inconsistency or contradictions between the provisions of this Section 8
and the other terms of this Plan, this Section 8 shall prevail.

 

A.           Eligibility
for Incentive Stock Options. Incentive Stock Options may be granted only to Employees of the Company, or to Employees of a
Parent or Subsidiary, determined as of the date of grant of such Options. An Incentive Stock Option granted to a prospective Employee
upon the condition that such person become an Employee shall be deemed granted effective on the date such person commences employment,
with an exercise price determined as of such date in accordance with Section ‎8.2.

 

B.           Exercise
Price. The Exercise Price of an Incentive Stock Option shall not be less than one hundred percent (100%) of the Fair Market
Value of the Shares covered by the Awards on the date of grant of such Option or such other price as may be determined pursuant
to the Code. Notwithstanding the foregoing, an Incentive Stock Option may be granted with an exercise price lower than the minimum
exercise price set forth above if such Award is granted pursuant to an assumption or substitution for another option in a manner
that complies with the provisions of Section 424(a) of the Code.

 

C.           Date
of Grant. Notwithstanding any other provision of this Plan to the contrary, no Incentive Stock Option may be granted under
this Plan after 10 years from the date this Plan is adopted, or the date this Plan is approved by the shareholders, whichever is
earlier.

 

D.           Exercise
Period. No Incentive Stock Option shall be exercisable after the expiration of ten (10) years after the effective date of grant
of such Award, subject to Section ‎8.6. No Incentive Stock Option granted to a prospective Employee may become exercisable
prior to the date on which such person commences employment.

 

    	 	- 17 -	 

     

    

 

E.           $100,000
Per Year Limitation. The aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the
Shares with respect to which all Incentive Stock Options granted under this Plan and all other “incentive stock option”
plans of the Company, or of any Parent or Subsidiary or Affiliate, become exercisable for the first time by each Grantee during
any calendar year shall not exceed one hundred thousand United States dollars ($100,000) with respect to such Grantee. To the extent
that the aggregate Fair Market Value of Shares with respect to which such Incentive Stock Options and any other such incentive
stock options are exercisable for the first time by any Grantee during any calendar year exceeds one hundred thousand United States
dollars ($100,000), such options shall be treated as Nonqualified Stock Options. The foregoing shall be applied by taking options
into account in the order in which they were granted. If the Code is amended to provide for a different limitation from that set
forth in this Section ‎8.5, such different limitation shall be deemed incorporated herein effective as of the date and with
respect to such Awards as required or permitted by such amendment to the Code. If an Option is treated as an Incentive Stock Option
in part and as a Nonqualifed Stock Option in part by reason of the limitation set forth in this Section ‎8.5, the Grantee may
designate which portion of such Option the Grantee is exercising. In the absence of such designation, the Grantee shall be deemed
to have exercised the Incentive Stock Option portion of the Option first. Separate certificates representing each such portion
may be issued upon the exercise of the Option.

 

F.           Ten
Percent Shareholder. In the case of an Incentive Stock Option granted to a Ten Percent Shareholder, (i) the Exercise Price
shall not be less than one hundred and ten percent (110%) of the Fair Market Value of a Share on the date of grant of such Incentive
Stock Option, and (ii) the Exercise Period shall not exceed five (5) years from the effective date of grant of such Incentive Stock
Option.

 

G.           Payment
of Exercise Price. Each Award Agreement evidencing an Incentive Stock Option shall state each alternative method by which the
Exercise Price thereof may be paid.

 

H.           Leave
of Absence. Notwithstanding Section ‎6.8, a Grantee’s employment shall not be deemed to have terminated if the Grantee
takes any leave as set forth in Section ‎6.8(i); provided, however, that if any such leave exceeds three (3) months, on the
day that is six (6) months following the commencement of such leave any Incentive Stock Option held by the Grantee shall cease
to be treated as an Incentive Stock Option and instead shall be treated thereafter as a Nonqualified Stock Option, unless the Grantee’s
right to return to employment is guaranteed by statute or contract.

 

I.           Exercise
Following Termination for Disability. Notwithstanding anything else in this Plan to the contrary, Incentive Stock Options that
are not exercised within three (3) months following termination of the Grantee’s employment with the Company or its Parent
or Subsidiary or a corporation or a Parent or Subsidiary of such corporation issuing or assuming an Option in a transaction to
which Section 424(a) of the Code applies, or within one year in case of termination of the Grantee’s employment with the
Company or its Parent or Subsidiary due to a Disability (within the meaning of Section 22(e)(3) of the Code), shall be deemed to
be Nonqualified Stock Options.

 

J.           Adjustments
to Incentive Stock Options. Any Awards Agreement providing for the grant of Incentive Stock Options shall indicate that adjustments
made pursuant to this Plan with respect to Incentive Stock Options could constitute a “modification” of such Incentive
Stock Options (as that term is defined in Section 424(h) of the Code) or could cause adverse tax consequences for the holder of
such Incentive Stock Options and that the holder should consult with his or her tax advisor regarding the consequences of such
“modification” on his or her income tax treatment with respect to the Incentive Stock Option.

 

    	 	- 18 -	 

     

    

 

K.            Notice
to Company of Disqualifying Disposition. Each Grantee who receives an Incentive Stock Option must agree to notify the Company
in writing immediately after the Grantee makes a Disqualifying Disposition of any Shares received pursuant to the exercise of Incentive
Stock Options. A “Disqualifying Disposition” is any disposition (including any sale) of such Shares before the later
of (i) two years after the date the Grantee was granted the Incentive Stock Option, or (ii) one year after the date the
Grantee acquired Shares by exercising the Incentive Stock Option. If the Grantee dies before such Shares are sold, these holding
period requirements do not apply and no disposition of the Shares will be deemed a Disqualifying Disposition.

 

		IX.	102 AWARDS.

 

Awards granted pursuant to this Section ‎9 are intended
to constitute 102 Awards and shall be granted subject to the following special terms and conditions, the general terms and conditions
specified in Section 6 hereof and other provisions of this Plan, except for any provisions of this Plan applying to Awards under
different tax laws or regulations. In the event of any inconsistency or contradictions between the provisions of this Section ‎9
and the other terms of this Plan, this Section ‎9 shall prevail.

 

A.             Tracks.
Awards granted pursuant to this Section ‎9 are intended to be granted pursuant to Section 102 of the Ordinance pursuant to
either (i) Section 102(b)(2) thereof, under the capital gain track (“102 Capital Gain Track Awards”), or (ii)
Section 102(b)(1) thereof under the ordinary income track (“102 Ordinary Income Track Awards”, and together
with 102 Capital Gain Track Awards, “102 Trustee Awards”). 102 Trustee Awards shall be granted subject to the
special terms and conditions contained in this Section ‎9, the general terms and conditions specified in Section ‎6 hereof
and other provisions of this Plan, except for any provisions of this Plan applying to Options under different tax laws or regulations.

 

B.             Election
of Track. Subject to Applicable Law, the Company may grant only one type of 102 Trustee Awards at any given time to all Grantees
who are to be granted 102 Trustee Awards pursuant to this Plan, and shall file an election with the ITA regarding the type of 102
Trustee Awards it elects to grant before the date of grant of any 102 Trustee Awards (the “Election”). Such
Election shall also apply to any other securities, including bonus shares, received by any Grantee as a result of holding the 102
Trustee Awards. The Company may change the type of 102 Trustee Awards that it elects to grant only after the expiration of at least
12 months from the end of the year in which the first grant was made in accordance with the previous Election, or as otherwise
provided by Applicable Law. Any Election shall not prevent the Company from granting Awards, pursuant to Section 102(c) of the
Ordinance without a Trustee (“102 Non-Trustee Awards”).

 

C.            Eligibility
for Awards.

 

1.          Subject
to Applicable Law, 102 Awards may only be granted to an "employee" within the meaning of Section 102(a) of the Ordinance
(which as of the date of the adoption of this Plan means (i) individuals employed by an Israeli company being the Company or any
of its Affiliates, and (ii) individuals who are serving and are engaged personally (and not through an entity) as “office
holders” by such an Israeli company), but may not be granted to a Controlling Shareholder (“Eligible 102 Grantees”).
Eligible 102 Grantees may receive only 102 Awards, which may either be granted to a Trustee or granted under Section 102 of the
Ordinance without a Trustee.

 

    	 	- 19 -	 

     

    

 

D.           102
Award Grant Date.

 

1.          Each
102 Award will be deemed granted on the date determined by the Committee, subject to Section ‎9.4.2, provided that (i) the
Grantee has signed all documents required by the Company or pursuant to Applicable Law, and (ii) with respect to 102 Trustee Award,
the Company has provided all applicable documents to the Trustee in accordance with the guidelines published by the ITA, and if
an agreement is not signed and delivered by the Grantee within 90 days from the date determined by the Committee (subject to Section
‎9.4.2), then such 102 Trustee Award shall be deemed granted on such later date as such agreement is signed and delivered and
on which the Company has provided all applicable documents to the Trustee in accordance with the guidelines published by the ITA.
In the case of any contradiction, this provision and the date of grant determined pursuant hereto shall supersede and be deemed
to amend any date of grant indicated in any corporate resolution or Award Agreement.

 

2.          Unless
otherwise permitted by the Ordinance, any grants of 102 Trustee Awards that are made on or after the date of the adoption of this
Plan or an amendment to this Plan, as the case may be, that may become effective only at the expiration of thirty (30) days after
the filing of this Plan or any amendment thereof (as the case may be) with the ITA in accordance with the Ordinance shall be conditional
upon the expiration of such 30-day period, such condition shall be read and is incorporated by reference into any corporate resolutions
approving such grants and into any Award Agreement evidencing such grants (whether or not explicitly referring to such condition),
and the date of grant shall be at the expiration of such 30-day period, whether or not the date of grant indicated therein corresponds
with this Section. In the case of any contradiction, this provision and the date of grant determined pursuant hereto shall supersede
and be deemed to amend any date of grant indicated in any corporate resolution or Award Agreement.

 

E.           102
Trustee Awards.

 

1.          Each
102 Trustee Award, each Share issued pursuant to the exercise of any 102 Trustee Award, and any rights granted thereunder, including
bonus shares, shall be issued to and registered in the name of the Trustee and shall be held in trust for the benefit of the Grantee
for the requisite period prescribed by the Ordinance or such longer period as set by the Committee (the “Required Holding
Period”). In the event that the requirements under Section 102 of the Ordinance to qualify an Award as a 102 Trustee
Award are not met, then the Award may be treated as a 102 Non-Trustee Award or 3(9) Award, all in accordance with the provisions
of the Ordinance. After expiration of the Required Holding Period, the Trustee may release such 102 Trustee Awards and any such
Shares, provided that (i) the Trustee has received an acknowledgment from the ITA that the Grantee has paid any applicable taxes
due pursuant to the Ordinance, or (ii) the Trustee and/or the Company and/or its Affiliate withholds all applicable taxes and compulsory
payments due pursuant to the Ordinance arising from the 102 Trustee Awards and/or any Shares issued upon exercise or (if applicable)
vesting of such 102 Trustee Awards. The Trustee shall not release any 102 Trustee Awards or Shares issued upon exercise or (if
applicable) vesting thereof prior to the payment in full of the Grantee’s tax and compulsory payments arising from such 102
Trustee Awards and/or Shares or the withholding referred to in (ii) above.

 

2.          Each
102 Trustee Award shall be subject to the relevant terms of the Ordinance, the Rules and any determinations, rulings or approvals
issued by the ITA, which shall be deemed an integral part of the 102 Trustee Awards and shall prevail over any term contained in
this Plan or Award Agreement that is not consistent therewith. Any provision of the Ordinance, the Rules and any determinations,
rulings or approvals by the ITA not expressly specified in this Plan or Award Agreement that are necessary to receive or maintain
any tax benefit pursuant to Section 102 of the Ordinance shall be binding on the Grantee. The Grantee granted a 102 Trustee Awards
shall comply with the Ordinance and the terms and conditions of the trust agreement entered into between the Company and the Trustee.
The Grantee shall execute any and all documents that the Company and/or its Affiliates and/or the Trustee determine from time to
time to be necessary in order to comply with the Ordinance and the Rules.

 

    	 	- 20 -	 

     

    

 

3.          During
the Required Holding Period, the Grantee shall not release from trust or sell, assign, transfer or give as collateral, the Shares
issuable upon the exercise or (if applicable) vesting of a 102 Trustee Awards and/or any securities issued or distributed with
respect thereto, until the expiration of the Required Holding Period. Notwithstanding the above, if any such sale, release or other
action occurs during the Required Holding Period it may result in adverse tax consequences to the Grantee under Section 102 of
the Ordinance and the Rules, which shall apply to and shall be borne solely by such Grantee. Subject to the foregoing, the Trustee
may, pursuant to a written request from the Grantee, but subject to the terms of this Plan, release and transfer such Shares to
a designated third party, provided that both of the following conditions have been fulfilled prior to such release or transfer:
(i) payment has been made to the ITA of all taxes and compulsory payments required to be paid upon the release and transfer of
the Shares, and confirmation of such payment has been received by the Trustee and the Company, and (ii) the Trustee has received
written confirmation from the Company that all requirements for such release and transfer have been fulfilled according to the
terms of the Company’s corporate documents, any agreement governing the Shares, this Plan, the Award Agreement and any Applicable
Law.

 

4.          If
a 102 Trustee Award is exercised or (if applicable) vested, the Shares issued upon such exercise or (if applicable) vesting shall
be issued in the name of the Trustee for the benefit of the Grantee.

 

5.          Upon
or after receipt of a 102 Trustee Award, if required, the Grantee may be required to sign an undertaking to release the Trustee
from any liability with respect to any action or decision duly taken and executed in good faith by the Trustee in relation to this
Plan, or any 102 Trustee Awards or Share granted to such Grantee thereunder.

 

F.           102
Non-Trustee Awards. The foregoing provisions of this Section ‎9 relating to 102 Trustee Awards shall not apply with respect
to 102 Non-Trustee Awards, which shall, however, be subject to the relevant provisions of Section 102 of the Ordinance and the
applicable Rules. The Committee may determine that 102 Non-Trustee Awards, the Shares issuable upon the exercise or (if applicable)
vesting of a 102 Non-Trustee Awards and/or any securities issued or distributed with respect thereto, shall be allocated or issued
to the Trustee, who shall hold such 102 Non-Trustee Awards and all accrued rights thereon (if any), in trust for the benefit of
the Grantee and/or the Company, as the case may be, until the full payment of tax arising from the 102 Non-Trustee Awards, the
Shares issuable upon the exercise or (if applicable) vesting of a 102 Non-Trustee Awards and/or any securities issued or distributed
with respect thereto. The Company may choose, alternatively, to force the Grantee to provide it with a guarantee or other security,
to the satisfaction of each of the Trustee and the Company, until the full payment of the applicable taxes.

 

G.           Israeli
Index Base for 102 Awards. Each 102 Award will be subject to the Israeli index base of the Value of Benefit, as defined in
Section 102(a) of the Ordinance, as determined by the Committee in its discretion, pursuant to the Rules, from time to time. The
Committee may amend (which may have a retroactive effect) the Israeli index base, pursuant to the Ordinance, without the Grantee’s
consent.

 

H.           Written
Grantee Undertaking. To the extent and with respect to any 102 Trustee Award, and as required by Section 102 of the Ordinance
and the Rules, by virtue of the receipt of such Award, the Grantee is deemed to have undertaken and confirm in writing the following
(and such undertaking is deemed incorporated into any documents signed by the Grantee in connection with the employment or service
of the Grantee and/or the grant of such Award). The following written undertaking shall be deemed to apply and relate to all 102
Trustee Awards granted to the Grantee, whether under this Plan or other plans maintained by the Company, and whether prior to or
after the date hereof.

 

    	 	- 21 -	 

     

    

 

1.          The
Grantee shall comply with all terms and conditions set forth in Section 102 of the Ordinance with regard to the “Capital
Gain Track” or the “Ordinary Income Track”, as applicable, and the applicable rules and regulations promulgated
thereunder, as amended from time to time;

 

2.          The
Grantee is familiar with, and understands the provisions of, Section 102 of the Ordinance in general, and the tax arrangement under
the “Capital Gain Track” or the “Ordinary Income Track” in particular, and its tax consequences; the Grantee
agrees that the 102 Trustee Awards and Shares that may be issued upon exercise or (if applicable) vesting of the 102 Trustee Awards
(or otherwise in relation to the 102 Trustee Awards), will be held by a trustee appointed pursuant to Section 102 of the Ordinance
for at least the duration of the "Holding Period" (as such term is defined in Section 102) under the "Capital Gain
Track" or the “Ordinary Income Track”, as applicable. The Grantee understands that any release of such 102 Trustee
Awards or Shares from trust, or any sale of the Share prior to the termination of the Holding Period, as defined above, will result
in taxation at marginal tax rate, in addition to deductions of appropriate social security, health tax contributions or other compulsory
payments; and

 

3.          The
Grantee agrees to the trust deed signed between the Company, his employing company and the trustee appointed pursuant to Section
102 of the Ordinance.

 

		X.	3(9) AWARDS.

 

A.           Awards
granted pursuant to this Section ‎10 are intended to constitute 3(9) Awards and shall be granted subject to the general terms
and conditions specified in Section ‎6 hereof and other provisions of this Plan, except for any provisions of this Plan applying
to Awards under different tax laws or regulations. In the event of any inconsistency or contradictions between the provisions of
this Section ‎10 and the other terms of this Plan, this Section ‎10 shall prevail.

 

B.           To
the extent required by the Ordinance or the ITA or otherwise deemed by the Committee to be advisable, the 3(9) Awards and/or any
shares or other securities issued or distributed with respect thereto granted pursuant to this Plan shall be issued to a Trustee
nominated by the Committee in accordance with the provisions of the Ordinance. In such event, the Trustee shall hold such Awards
and/or any shares or other securities issued or distributed with respect thereto in trust, until exercised or (if applicable) vested
by the Grantee and the full payment of tax arising therefrom, pursuant to the Company's instructions from time to time as set forth
in a trust agreement, which will have been entered into between the Company and the Trustee. If determined by the Board or the
Committee, and subject to such trust agreement, the Trustee shall be responsible for withholding any taxes to which a Grantee may
become liable upon issuance of Shares, whether due to the exercise or (if applicable) vesting of Awards.

 

C.           Shares
pursuant to a 3(9) Award shall not be issued, unless the Grantee delivers to the Company payment in cash or by bank check or such
other form acceptable to the Committee of all withholding taxes due, if any, on account of the Grantee acquired Shares under the
Award or gives other assurance satisfactory to the Committee of the payment of those withholding taxes.

 

		XI.	RESTRICTED SHARES.

 

The Committee may award Restricted Shares to any eligible Grantee,
including under Section 102 of the Ordinance. Each Award of Restricted Shares under this Plan shall be evidenced by a written agreement
between the Company and the Grantee (the “Restricted Share Agreement”), in such form as the Committee shall
from time to time approve. The Restricted Shares shall be subject to all applicable terms of this Plan, which in the case of Restricted
Shares granted under Section 102 of the Ordinance shall include Section ‎9 hereof, and may be subject to any other terms that
are not inconsistent with this Plan. The provisions of the various Restricted Shares Agreements entered into under this Plan need
not be identical. The Restricted Share Agreement shall comply with and be subject to Section ‎6 and the following terms and
conditions, unless otherwise specifically provided in such Agreement and not inconsistent with this Plan, or Applicable Law:

 

    	 	- 22 -	 

     

    

 

A.           Purchase
Price. Section ‎6.4 shall not apply. Each Restricted Share Agreement shall state an amount of Exercise Price to be paid
by the Grantee, if any, in consideration for the issuance of the Restricted Shares and the terms of payment thereof, which may
include, payment in cash or, subject to the Committee’s approval, by issuance of promissory notes or other evidence of indebtedness
on such terms and conditions as determined by the Committee.

 

B.           Restrictions.
Restricted Shares may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or the
laws of descent and distribution (in which case they shall be transferred subject to all restrictions then or thereafter applicable
thereto), until such Restricted Shares shall have vested (the period from the date on which the Award is granted until the date
of vesting of the Restricted Share thereunder being referred to herein as the “Restricted Period”). The Committee
may also impose such additional or alternative restrictions and conditions on the Restricted Shares, as it deems appropriate, including
the satisfaction of performance criteria. Such performance criteria may include, but are not limited to, sales, earnings before
interest and taxes, return on investment, earnings per share, any combination of the foregoing or rate of growth of any of the
foregoing, as determined by the Committee or pursuant to the provisions of any Company policy required under mandatory provisions
of Applicable Law. Certificates for shares issued pursuant to Restricted Share Awards, if issued, shall bear an appropriate legend
referring to such restrictions, and any attempt to dispose of any such shares in contravention of such restrictions shall be null
and void and without effect. Such certificates may, if so determined by the Committee, be held in escrow by an escrow agent appointed
by the Committee, or, if a Restricted Share Award is made pursuant to Section 102 of the Ordinance, by the Trustee. In determining
the Restricted Period of an Award the Committee may provide that the foregoing restrictions shall lapse with respect to specified
percentages of the awarded Restricted Shares on successive anniversaries of the date of such Award. To the extent required by the
Ordinance or the ITA, the Restricted Shares issued pursuant to Section 102 of the Ordinance shall be issued to the Trustee in accordance
with the provisions of the Ordinance and the Restricted Shares shall be held for the benefit of the Grantee for at least the Required
Holding Period.

 

C.           Forfeiture;
Repurchase. Subject to such exceptions as may be determined by the Committee, if the Grantee's continuous employment with or
service to the Company or any Affiliate thereof shall terminate for any reason prior to the expiration of the Restricted Period
of an Award or prior to the timely payment in full of the Exercise Price of any Restricted Shares, any Shares remaining subject
to vesting or with respect to which the purchase price has not been paid in full, shall thereupon be forfeited, transferred to,
and redeemed, repurchased or cancelled by, as the case may be, in any manner as set forth in Section ‎6.6.2(i) through (v),
subject to Applicable Laws and the Grantee shall have no further rights with respect to such Restricted Shares.

 

D.           Ownership.
During the Restricted Period the Grantee shall possess all incidents of ownership of such Restricted Shares, subject to Section
‎6.10 and Section ‎11.2, including the right to vote and receive dividends with respect to such Shares. All securities,
if any, received by a Grantee with respect to Restricted Shares as a result of any stock split, stock dividend, combination of
shares, or other similar transaction shall be subject to the restrictions applicable to the original Award.

 

    	 	- 23 -	 

     

    

 

		XII.	RESTRICTED SHARE UNITS.

 

A.           An
RSU is an Award covering a number of Shares that is settled, if vested and (if applicable) exercised, by issuance of those Shares.
An RSU may be awarded to any eligible Grantee, including under Section 102 of the Ordinance, provided that, to the extent required
by Applicable Laws, a specific ruling is obtained from the ITA to grant RSUs as 102 Trustee Awards. The Award Agreement relating
to the grant of RSUs under this Plan (the “Restricted Share Unit Agreement”), shall be in such form as the Committee
shall from time to time approve. The RSUs shall be subject to all applicable terms of this Plan, which in the case of RSUs granted
under Section 102 of the Ordinance shall include Section ‎9 hereof, and may be subject to any other terms that are not inconsistent
with this Plan. The provisions of the various Restricted Share Unit Agreements entered into under this Plan need not be identical.
RSUs may be granted in consideration of a reduction in the recipient’s other compensation.

 

B.           Exercise
Price. No payment of Exercise Price shall be required as consideration for RSUs, unless included in the Award Agreement or
as required by Applicable Law (including, Section 304 of the Companies Law, 1999, as amended), and Section ‎6.4 shall apply,
if applicable.

 

C.           Shareholders’
Rights. The Grantee shall not possess or own any ownership rights in the Shares underlying the RSUs and no rights as a shareholder
shall exist prior to the actual issuance of Shares in the name of the Grantee.

 

D.           Settlements
of Awards. Settlement of vested RSUs shall be made in the form of Shares. Distribution to a Grantee of an amount (or amounts)
from settlement of vested RSUs can be deferred to a date after settlement as determined by the Committee. The amount of a deferred
distribution may be increased by an interest factor or by dividend equivalents. Until the grant of RSUs is settled, the number
of Shares underlying such RSUs shall be subject to adjustment pursuant hereto.

 

E.           Section 409A
Restrictions. Notwithstanding anything to the contrary set forth herein, any RSUs granted under this Plan that are not exempt
from the requirements of Section 409A of the Code shall contain such restrictions or other provisions so that such RSUs will
comply with the requirements of Section 409A of the Code, if applicable to the Company. Such restrictions, if any, shall be
determined by the Committee and contained in the Restricted Share Unit Agreement evidencing such RSU. For example, such restrictions
may include a requirement that any Shares that are to be issued in a year following the year in which the RSU vests must be issued
in accordance with a fixed, pre-determined schedule.

 

		XIII.	OTHER SHARE OR SHARE-BASED AWARDS.

 

A.           The
Committee may grant other Awards under this Plan pursuant to which Shares (which may, but need not, be Restricted Shares pursuant
to Section 11 hereof), cash (in settlement of Share-based Awards) or a combination thereof, are or may in the future be acquired
or received, or Awards denominated in stock units, including units valued on the basis of measures other than market value.

 

B.           The
Committee may also grant stock appreciation rights without the grant of an accompanying option, which rights shall permit the Grantees
to receive, at the time of any exercise of such rights, cash equal to the amount by which the Fair Market Value of the Shares in
respect to which the right was granted is so exercised exceed the exercise price thereof. The exercise price of any such stock
appreciation right granted to a Grantee who is subject to U.S. federal income tax shall be determined in compliance with Section
‎7.2.

 

C.           Such
other Share-based Awards as set forth above may be granted alone, in addition to, or in tandem with any Award of any type granted
under this Plan.

 

    	 	- 24 -	 

     

    

 

		XIV.	EFFECT OF CERTAIN CHANGES.

 

A.           General.
In the event of a division or subdivision of the outstanding share capital of the Company, any distribution of bonus shares (stock
split), consolidation or combination of share capital of the Company (reverse stock split), reclassification with respect to the
Shares or any similar recapitalization events (each, a "Recapitalization"), a merger (including, a reverse merger
and a reverse triangular merger), consolidation, amalgamation or like transaction of the Company with or into another corporation,
a reorganization (which may include a combination or exchange of shares, spin-off or other corporate divestiture or division, or
other similar occurrences, the Committee shall have the authority to make, without the need for a consent of any holder of an Award,
such adjustments as determined by the Committee to be appropriate, in its discretion, in order to adjust (i) the number and class
of shares reserved and available for grants of Awards, (ii) the number and class of shares covered by outstanding Awards, (iii)
the Exercise Price per share covered by any Award, (iv) the terms and conditions concerning vesting and exercisability and the
term and duration of the outstanding Awards, and (v) any other terms of the Award that in the opinion of the Committee should be
adjusted. Any fractional shares resulting from such adjustment shall be treated as determined by the Committee, and in the absence
of such determination shall be rounded to the nearest whole share, and the Company shall have no obligation to make any cash or
other payment with respect to such fractional shares. No adjustment shall be made by reason of the distribution of subscription
rights or rights offering to outstanding shares or other issuance of shares by the Company, unless the Committee determines otherwise.
The adjustments determined pursuant to this Section ‎14.1 (including a determination that no adjustment is to be made) shall
be final, binding and conclusive.

 

B.           Change
of Control. In the event of a Change of Control, then, without derogating from the general authority and power of the Board
or the Committee under this Plan, without the Grantee’s consent and action and without any prior notice requirement:

 

1.          Unless
otherwise determined by the Committee in its sole and absolute discretion, any Award then outstanding shall be assumed or be substituted
by the Company, or by the successor corporation in  an event described in paragraph (i) or (ii) of the definition of Change
of Control, or by any parent or Affiliate thereof, as determined by the Committee in its discretion (the “Successor Corporation”),
under terms as determined by the Committee or the terms of this Plan applied by the Successor Corporation to such assumed or substituted
Awards.

 

    	 	- 25 -	 

     

    

 

For the purposes of this Section
14.2.1, the Award shall be considered assumed or substituted if, following such a Change of Control, the Award confers on the holder
thereof the right to purchase or receive, for each Share underlying an Award immediately prior to the Change of Control, either
(i) the consideration (whether stock, cash, or other securities or property, or any combination thereof) distributed to or received
by holders of Shares in the Change of Control for each Share held on the effective date of the Change of Control (and if holders
were offered a choice or several types of consideration, the type of consideration as determined by the Committee), or (ii) regardless
of the consideration received by the holders of Shares in the Change of Control, solely shares or any type of Awards (or their
equivalent) of the Successor Corporation at a value to be determined by the Committee in its discretion, or a certain type of consideration
(whether stock, cash, or other securities or property, or any combination thereof) as determined by the Committee. Any of the above
consideration referred to in clauses (i) and (ii) shall be subject to the same vesting and expiration terms of the Awards applying
immediately prior to the Change of Control, unless determined by the Committee in its discretion that the consideration shall be
subject to different vesting and expiration terms, or other terms, and the Committee may determine that it be subject to other
or additional terms. The foregoing shall not limit the Committee's authority to determine, in its sole discretion, that in lieu
of such assumption or substitution of Awards for Awards of the Successor Corporation, such Award will be substituted for any other
type of asset or property, including as set forth in Section 14.2.2 hereunder.

 

2.            Regardless
of whether or not Awards are assumed or substituted, the Committee may (but shall not be obligated to), in its sole discretion:

 

		a.	provide for the Grantee to have the right to exercise the
Award in respect of Shares covered by the Award which would otherwise be exercisable or vested, under such terms and conditions
as the Committee shall determine, and the cancellation of all unexercised Awards (whether vested or unvested) upon or immediately
prior to the closing of the Change of Control, unless the Committee provides for the Grantee to have the right to exercise the
Award, or otherwise for the acceleration of vesting of such Award, as to all or part of the Shares covered by the Award which
would not otherwise be exercisable or vested, under such terms and conditions as the Committee shall determine; and/or

 

		b.	provide for the cancellation of each outstanding Award
at or immediately prior to the closing of such Change of Control, and payment to the Grantee of an amount in cash, shares of the
Company, the acquirer or of a corporation or other business entity which is a party to the Change of Control or other property,
as determined by the Committee to be fair in the circumstances, and subject to such terms and conditions as determined by the
Committee. The Committee shall have full authority to select the method for determining the payment (being the Black-Scholes model
or any other method). The Committee’s determination may further provide that payment shall be set to zero if the value of
the Shares is determined to be less than the Exercise Price or in respect of Shares covered by the Award which would not otherwise
be exercisable or vested, or that payment may be made only in excess of the Exercise Price.

 

    	 	- 26 -	 

     

    

 

3.          The
Committee may determine that any payments made in respect of Awards shall be made or delayed to the same extent that payment of
consideration to the holders of the Shares in connection with the Change of Control is made or delayed as a result of escrows,
indemnification, earn outs, holdbacks or any other contingencies; and the terms and conditions applying to the payment made to
the Grantees, including participation in escrow, indemnification, releases, earn-outs, holdbacks or any other contingencies.

 

4.          Notwithstanding
the foregoing, in the event of a Change of Control, the Committee may determine, in its sole discretion, that upon completion of
such Change of Control the terms of any Award shall be otherwise amended, modified or terminated, as the Committee shall deem in
good faith to be appropriate and without any liability to the Company or its Affiliates and to their respective officers, directors,
employees and representatives and the respective successors and assigns of any of the foregoing in connection with the method of
treatment or chosen course of action permitted hereunder.

 

5.          Neither
the authorities and powers of the Committee under this Section 14.2, nor the exercise or implementation thereof, shall (i) be restricted
or limited in any way by any adverse consequences (tax or otherwise) that may result to any holder of an Award, and (ii) as, inter
alia, being a feature of the Award upon its grant, be deemed to constitute a change or an amendment of the rights of such holder
under this Plan, nor shall any such adverse consequences (as well as any adverse tax consequences that may result from any tax
ruling or other approval or determination of any relevant tax authority) be deemed to constitute a change or an amendment of the
rights of such holder under this Plan, and may be effected without consent of any Grantee and without any liability to the Company
or its Affiliates and to their respective its officers, directors, employees and representatives and the respective successors
and assigns of any of the foregoing. The Committee need not take the same action with respect to all Awards or with respect to
all Service Providers. The Committee may take different actions with respect to the vested and unvested portions of an Award. The
Committee may determine an amount or type of consideration to be received or distributed in a Change of Control which may differ
as among the Grantees, and as between the Grantees and any other holders of shares of the Company.

 

6.          The
Committee’s determinations pursuant to this Section ‎14 shall be conclusive and binding on all Grantees.

 

    	 	- 27 -	 

     

    

 

7.          If
determined by the Committee, the Grantees shall be subject to the definitive agreement(s) in connection with the Change of Control
as applying to holders of Shares including, such terms, conditions, representations, undertakings, liabilities, limitations, releases,
indemnities, participating in transaction expenses and escrow arrangement, in each case as determined by the Committee. Each Grantee
shall execute such separate agreement(s) or instruments as may be requested by the Company, the Successor Corporation or the acquirer
in connection with such in such Change of Control and in the form required by them. The execution of such separate agreement(s)
may be a condition to the receipt of assumed or substituted Awards, payment in lieu of the Award or the exercise of any Award.

 

C.           Reservation
of Rights. Except as expressly provided in this Section ‎14 (if any), the Grantee of an Award hereunder shall have no rights
by reason of any Recapitalization of shares of any class, any increase or decrease in the number of shares of any class, or any
dissolution, liquidation, reorganization (which may include a combination or exchange of shares, spin-off or other corporate divestiture
or division, or other similar occurrences), or Change of Control. Any issue by the Company of shares of any class, or securities
convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect
to, the number, type or price of shares subject to an Award. The grant of an Award pursuant to this Plan shall not affect in any
way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business
structures or to merge or to consolidate or to dissolve, liquidate or sell, or transfer all or part of its business or assets or
engage in any similar transactions.

 

		XV.	NON-TRANSFERABILITY OF AWARDS; SURVIVING BENEFICIARY.

 

A.           All
Awards granted under this Plan by their terms shall not be transferable other than by will or by the laws of descent and distribution,
unless otherwise determined by the Committee or under this Plan, provided that with respect to Shares issued upon exercise or (if
applicable) the vesting of Awards the restrictions on transfer shall be the restrictions referred to in Section 16 (Conditions
upon Issuance of Shares) hereof. Subject to the above provisions, the terms of such Award, this Plan and any applicable Award Agreement
shall be binding upon the beneficiaries, executors, administrators, heirs and successors of such Grantee. Awards may be exercised
or otherwise realized, during the lifetime of the Grantee, only by the Grantee or by his guardian or legal representative, to the
extent provided for herein. Any transfer of an Award not permitted hereunder (including transfers pursuant to any decree of divorce,
dissolution or separate maintenance, any property settlement, any separation agreement or any other agreement with a spouse) and
any grant of any interest in any Award to, or creation in any way of any direct or indirect interest in any Award by, any party
other than the Grantee shall be null and void and shall not confer upon any party or person, other than the Grantee, any rights.
A Grantee may file with the Committee a written designation of a beneficiary, who shall be permitted to exercise such Grantee’s
Award or to whom any benefit under this Plan is to be paid, in each case, in the event of the Grantee’s death before he or
she fully exercises his or her Award or receives any or all of such benefit, on such form as may be prescribed by the Committee
and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Grantee, the executor or
administrator of the Grantee's estate shall be deemed to be the Grantee's beneficiary. Notwithstanding the foregoing, upon the
request of the Grantee and subject to Applicable Law the Committee, at its sole discretion, may permit the Grantee to transfer
the Award to a trust whose beneficiaries are the Grantee and/or the Grantee’s immediate family members (all or several of
them).

 

B.           Notwithstanding
any other provisions of the Plan to the contrary, no Incentive Stock Option may be sold, transferred, pledged, assigned or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution or in accordance with a beneficiary designation
pursuant to Section 15.1. Further, all Incentive Stock Options granted to a Grantee shall be exercisable during his or her lifetime
only by such Grantee.

 

 

    	 	- 28 -	 

     

    

 

C.           As
long as the Shares are held by the Trustee in favor of the Grantee, all rights possessed by the Grantee over the Shares are personal,
and may not be transferred, assigned, pledged or mortgaged, other than by will or laws of descent and distribution.

 

D.           The
provisions of this Section ‎15 shall apply to the Grantee and to any purchaser, assignee or transferee of any Shares.

 

		XVI.	CONDITIONS UPON ISSUANCE OF SHARES; GOVERNING PROVISIONS.

 

A.           Legal
Compliance. The grant of Awards and the issuance of Shares upon exercise or settlement of Awards shall be subject to compliance
with all Applicable Laws as determined by the Company, including, applicable requirements of federal, state and foreign law with
respect to such securities. The Company shall have no obligations to issue Shares pursuant to the exercise or settlement of an
Award and Awards may not be exercised or settled, if the issuance of Shares upon exercise or settlement would constitute a violation
of any Applicable Laws as determined by the Company, including, applicable federal, state or foreign securities laws or other law
or regulations or the requirements of any stock exchange or market system upon which the Shares may then be listed. In addition,
no Award may be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise or settlement
of the Award be in effect with respect to the shares issuable upon exercise of the Award, or (ii) in the opinion of legal counsel
to the Company, the shares issuable upon exercise of the Award may be issued in accordance with the terms of an applicable exemption
from the registration requirements of the Securities Act. The inability of the Company to obtain authority from any regulatory
body having jurisdiction, if any, deemed by the Company to be necessary to the lawful issuance and sale of any Shares hereunder,
and the inability to issue Shares hereunder due to non-compliance with any Company policies with respect to the sale of Shares,
shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority
or compliance shall not have been obtained or achieved. As a condition to the exercise of an Award, the Company may require the
person exercising such Award to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any
Applicable Law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company,
including to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares, all in form and content specified by the Company.

 

B.           Provisions
Governing Shares. Shares issued pursuant to an Award shall be subject to the Articles of Association of the Company, any limitation,
restriction or obligation included in any shareholders agreement applicable to all or substantially all of the holders of shares
(regardless of whether or not the Grantee is a formal party to such shareholders agreement), any other governing documents of the
Company, all policies, manuals and internal regulations adopted by the Company from time to time, in each case, as may be amended
from time to time, including any provisions included therein concerning restrictions or limitations on disposition of Shares (such
as, but not limited to, right of first refusal and lock up/market stand-off) or grant of any rights with respect thereto, forced
sale and bring along provisions, any provisions concerning restrictions on the use of inside information and other provisions deemed
by the Company to be appropriate in order to ensure compliance with Applicable Laws. Each Grantee shall execute such separate agreement(s)
as may be requested by the Company relating to matters set forth in this Section ‎16.2. The execution of such separate agreement(s)
may be a condition by the Company to the exercise of any Award.

 

    	 	- 29 -	 

     

    

 

C.           Forced
Sale. In the event the that Board approves a Change of Control effected by way of a forced or compulsory sale (whether pursuant
to the Company’s Articles of Association or pursuant to Section 341 of the Companies Law), then, without derogating from
such provisions and in addition thereto, the Grantee shall be obligated, and shall be deemed to have agreed to the offer to effect
the Change of Control on the terms approved by the Board (and the Shares held by or for the benefit of the Grantee shall be included
in the shares of the Company approving the terms of such Change of Control for the purpose of satisfying the required majority),
and shall sell all of the Shares held by or for the benefit of the Grantee on the terms and conditions applying to the holders
of Shares, in accordance with the instructions then issued by the Board, whose determination shall be final. No Grantee shall contest,
bring any claims or demands, or exercise any appraisal rights related to any of the foregoing. The proxy pursuant to Section ‎6.10
includes an authorization of the holder of such proxy to sign, by and on behalf of any Grantee, such documents and agreements as
are required to affect the sale of Shares in connection with such Change of Control.

 

D.           Share
Transfer Restrictions. Any transfer or other disposition of Shares or any interest therein is subject to the prior approval
of the Board, which, if granted (without any obligation to do so), may be subject to such terms, conditions and restrictions, as
it deems appropriate. The terms, conditions and restrictions of any approval may differ from one Grantee to another, and need not
be the same. Any transfer or otherwise grant of any interest in any Shares to any third party that does not comply with this Section
shall be null and void and shall not confer upon any person, other than the Grantee, any rights. This Section shall terminate immediately
after the public offering of securities of the Company pursuant to an effective registration statement filed under the Securities
Act or equivalent law in another jurisdiction and the listing for trading on a stock exchange or market or trading system. This
Section shall apply in addition to any other limitation, restriction and/or condition in this Plan (including, without limitation,
after the application of Section ‎16), any Award Agreement, shareholders agreement, Company’s Articles of Association
or other instrument between the Grantee and the Company or by which the Grantee is bound. This Section shall not apply to a transfer
of Shares in a sale of all or substantially all of the shares of the Company which was approved by the Board or pursuant to the
Company’s Articles of Association or upon a Change of Control.

 

    	 	- 30 -	 

     

    

 

		XVII.	MARKET STAND-OFF

 

A.           In
connection with any underwritten public offering of equity securities of the Company pursuant to an effective registration statement
filed under the Securities Act or equivalent law in another jurisdiction, the Grantee shall not directly or indirectly, without
the prior written consent of the Company or its underwriters, (i) lend, offer, pledge, sell, contract to sell, sell any option
or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise
transfer or dispose of, directly or indirectly, any Shares or other Awards, any securities of the Company (whether or not such
Shares were acquired under this Plan), or any securities convertible into or exercisable or exchangeable (directly or indirectly)
for Shares or securities of the Company and any other shares or securities issued or distributed in respect thereto or in substitution
thereof (collectively, “Securities”), or (ii) enter into any swap or other arrangement that transfers to
another, in whole or in part, any of the economic consequences of ownership of the Securities, whether any such transaction described
in clauses (i) or (ii) is to be settled by delivery of Securities, in cash or otherwise. The foregoing provisions of this Section
‎17.1 shall not apply to the sale of any shares to an underwriter pursuant to an underwriting agreement. Such restrictions
(the “Market Stand-Off”) shall be in effect for such period of time (the “Market Stand-Off Period”):
(A) following the first public filing of the registration statement relating to the underwritten public offering until the extirpation
of 180 days following the effective date of such registration statement relating to the Company’s initial public offering
or 90 days following the effective date of such registration statement relating to any other public offering, in each case, provided,
however, that if (1) during the last 17 days of the initial Market Stand-Off Period, the Company releases earnings results or announces
material news or a material event or (2) prior to the expiration of the initial Market Stand-Off Period, the Company announces
that it will release earnings results during the 15-day period following the last day of the initial Market Stand-Off Period, then
in each case the Market Stand-Off Period will be automatically extended until the expiration of the 18-day period beginning on
the date of release of the earnings results or the announcement of the material news or material event; or (B) such other period
as shall be requested by the Company or the underwriters. Notwithstanding anything herein to the contrary, if the underwriter(s)
and the Company agree on a termination date of the Market Stand-Off Period in the event of failure to consummate a certain public
offering, then such termination shall apply also to the Market Stand-Off Period hereunder with respect to that particular public
offering.

 

B.           In
the event of a subdivision of the outstanding share capital of the Company, the distribution of any securities (whether or not
of the Company), whether as bonus shares or otherwise, and whether as dividend or otherwise, a recapitalization, a reorganization
(which may include a combination or exchange of shares or a similar transaction affecting the Company’s outstanding securities
without receipt of consideration), a consolidation, a spin-off or other corporate divestiture or division, a reclassification or
other similar occurrence, any new, substituted or additional securities which are by reason of such transaction distributed with
respect to any Shares subject to the Market Stand-Off, or into which such Shares thereby become convertible, shall immediately
be subject to the Market Stand-Off.

 

C.           In
order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Shares acquired under
this Plan until the end of the applicable Market Stand-Off period.

 

D.           The
underwriters in connection with a registration statement so filed are intended third party beneficiaries of this Section 17 and
shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. Each Grantee shall
execute such separate agreement(s) as may be requested by the Company or the underwriters in connection with such registration
statement and in the form required by them, relating to Market Stand-Off (which need not be identical to the provisions of this
Section 17, and may include such additional provisions and restrictions as the underwriters deem advisable) or that are necessary
to give further effect thereto. The execution of such separate agreement(s) may be a condition by the Company to the exercise of
any Award.

 

E.           Without
derogating from the above provisions of this Section 17 or elsewhere in this Plan, the provisions of this Section 17 shall apply
to the Grantee and the Grantee’s heirs, legal representatives, successors, assigns, and to any purchaser, assignee or transferee
of any Awards or Shares.

 

    	 	- 31 -	 

     

    

 

		XVIII.	AGREEMENT REGARDING TAXES; DISCLAIMER.

 

A.           If
the Committee shall so require, as a condition of exercise of an Award, the release of Shares by the Trustee or the expiration
of the Restricted Period, a Grantee shall agree that, no later than the date of such occurrence, the Grantee will pay to the Company
(or the Trustee, as applicable) or make arrangements satisfactory to the Committee and the Trustee (if applicable) regarding payment
of any applicable taxes and compulsory payments of any kind required by Applicable Law to be withheld or paid.

 

B.           TAX
LIABILITY. ALL TAX CONSEQUENCES UNDER ANY APPLICABLE LAW WHICH MAY ARISE FROM THE GRANT OF ANY AWARDS OR THE EXERCISE THEREOF,
THE SALE OR DISPOSITION OF ANY SHARES GRANTED HEREUNDER OR ISSUED UPON EXERCISE OR (IF APPLICABLE) THE VESTING OF ANY AWARD, THE
ASSUMPTION, SUBSTITUTION, CANCELLATION OR PAYMENT IN LIEU OF AWARDS OR FROM ANY OTHER ACTION IN CONNECTION WITH THE FOREGOING (INCLUDING
WITHOUT LIMITATION ANY TAXES AND COMPULSORY PAYMENTS, SUCH AS SOCIAL SECURITY OR HEALTH TAX PAYABLE BY THE GRANTEE OR THE COMPANY
IN CONNECTION THEREWITH) SHALL BE BORNE AND PAID SOLELY BY THE GRANTEE, AND THE GRANTEE SHALL INDEMNIFY THE COMPANY, ITS SUBSIDIARIES
AND AFFILIATES AND THE TRUSTEE, AND SHALL HOLD THEM HARMLESS AGAINST AND FROM ANY LIABILITY FOR ANY SUCH TAX OR PAYMENT OR ANY
PENALTY, INTEREST OR INDEXATION THEREON. EACH GRANTEE AGREES TO, AND UNDERTAKES TO COMPLY WITH, ANY RULING, SETTLEMENT, CLOSING
AGREEMENT OR OTHER SIMILAR AGREEMENT OR ARRANGEMENT WITH ANY TAX AUTHORITY IN CONNECTION WITH THE FOREGOING WHICH IS APPROVED BY
THE COMPANY.

 

C.           NO
TAX ADVICE. THE GRANTEE IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING, EXERCISING
OR DISPOSING OF AWARDS HEREUNDER. THE COMPANY DOES NOT ASSUME ANY RESPONSIBILITY TO ADVISE THE GRANTEE ON SUCH MATTERS, WHICH SHALL
REMAIN SOLELY THE RESPONSIBILITY OF THE GRANTEE.

 

    	 	- 32 -	 

     

    

 

D.           TAX
TREATMENT. THE COMPANY DOES NOT UNDERTAKE OR ASSUME ANY LIABILITY OR RESPONSIBILITY TO THE EFFECT THAT ANY AWARD SHALL QUALIFY
WITH ANY PARTICULAR TAX REGIME OR RULES APPLYING TO PARTICULAR TAX TREATMENT, OR BENEFIT FROM ANY PARTICULAR TAX TREATMENT OR TAX
ADVANTAGE OF ANY TYPE AND THE COMPANY SHALL BEAR NO LIABILITY IN CONNECTION WITH THE MANNER IN WHICH ANY AWARD IS EVENTUALLY TREATED
FOR TAX PURPOSES, REGARDLESS OF WHETHER THE AWARD WAS GRANTED OR WAS INTENDED TO QUALIFY UNDER ANY PARTICULAR TAX REGIME OR TREATMENT.
THIS PROVISION SHALL SUPERSEDE ANY TYPE OF AWARDS OR TAX QUALIFICATION INDICATED IN ANY CORPORATE RESOLUTION OR AWARD AGREEMENT,
WHICH SHALL AT ALL TIMES BE SUBJECT TO THE REQUIREMENTS OF APPLICABLE LAW. THE COMPANY DOES NOT UNDERTAKE AND SHALL NOT BE REQUIRED
TO TAKE ANY ACTION IN ORDER TO QUALIFY THE AWARD WITH THE REQUIREMENT OF ANY PARTICULAR TAX TREATMENT AND NO INDICATION IN ANY
DOCUMENT TO THE EFFECT THAT ANY AWARD IS INTENDED TO QUALIFY FOR ANY TAX TREATMENT SHALL IMPLY SUCH AN UNDERTAKING. NO ASSURANCE
IS MADE BY THE COMPANY OR ANY OF ITS AFFILIATES THAT ANY PARTICULAR TAX TREATMENT ON THE DATE OF GRANT WILL CONTINUE TO EXIST OR
THAT THE AWARD WOULD QUALIFY AT THE TIME OF EXERCISE OR DISPOSITION THEREOF WITH ANY PARTICULAR TAX TREATMENT. THE COMPANY AND
ITS AFFILIATES SHALL NOT HAVE ANY LIABILITY OR OBLIGATION OF ANY NATURE IN THE EVENT THAT AN AWARD DOES NOT QUALIFY FOR ANY PARTICULAR
TAX TREATMENT, REGARDLESS WHETHER THE COMPANY COULD HAVE OR SHOULD HAVE TAKEN ANY ACTION TO CAUSE SUCH QUALIFICATION TO BE MET
AND SUCH QUALIFICATION REMAINS AT ALL TIMES AND UNDER ALL CIRCUMSTANCES AT THE RISK OF THE GRANTEE. THE COMPANY DOES NOT UNDERTAKE
OR ASSUME ANY LIABILITY TO CONTEST A DETERMINATION OR INTERPRETATION (WHETHER WRITTEN OR UNWRITTEN) OF ANY TAX AUTHORITIES, INCLUDING
IN RESPECT OF THE QUALIFICATION UNDER ANY PARTICULAR TAX REGIME OR RULES APPLYING TO PARTICULAR TAX TREATMENT. IF THE AWARDS DO
NOT QUALIFY UNDER ANY PARTICULAR TAX TREATMENT IT COULD RESULT IN ADVERSE TAX CONSEQUENCES TO THE GRANTEE.

 

E.           The
Company or any Subsidiary or Affiliate may take such action as it may deem necessary or appropriate, in its discretion, for the
purpose of or in connection with withholding of any taxes and compulsory payments which the Trustee, the Company or any Subsidiary
or Affiliate is required by any Applicable Law to withhold in connection with any Awards (collectively, “Withholding Obligations”).
Such actions may include (i) requiring a Grantees to remit to the Company in cash an amount sufficient to satisfy such Withholding
Obligations and any other taxes and compulsory payments, payable by the Company in connection with the Award or the exercise or
(if applicable) the vesting thereof; (ii) subject to Applicable Law, allowing the Grantees to provide Shares to the Company, in
an amount that at such time, reflects a value that the Committee determines to be sufficient to satisfy such Withholding Obligations;
(iii) withholding Shares otherwise issuable upon the exercise of an Award at a value which is determined by the Committee to be
sufficient to satisfy such Withholding Obligations; or (iv) any combination of the foregoing. The Company shall not be obligated
to allow the exercise of any Award by or on behalf of a Grantee until all tax consequences arising from the exercise of such Award
are resolved in a manner acceptable to the Company.

 

    	 	- 33 -	 

     

    

 

F.           Each
Grantee shall notify the Company in writing promptly and in any event within ten (10) days after the date on which such Grantee
first obtains knowledge of any tax bureau inquiry, audit, assertion, determination, investigation, or question relating in any
manner to the Awards granted or received hereunder or Shares issued thereunder and shall continuously inform the Company of any
developments, proceedings, discussions and negotiations relating to such matter, and shall allow the Company and its representatives
to participate in any proceedings and discussions concerning such matters. Upon request, a Grantee shall provide to the Company
any information or document relating to any matter described in the preceding sentence, which the Company, in its discretion, requires.

 

G.           With
respect to 102 Non-Trustee Options, if the Grantee ceases to be employed by the Company or any Affiliate, the Grantee shall extend
to the Company and/or its Affiliate with whom the Grantee is employed a security or guarantee for the payment of taxes due at the
time of sale of Shares, all in accordance with the provisions of Section 102 of the Ordinance and the Rules.

 

H.           For
the purpose hereof “tax(es)” means (a) all federal, state, local or foreign taxes, charges, fees, imposts, levies or
other assessments, including all income, capital gains, transfer, withholding, payroll, employment, social security, national security,
health tax, wealth surtax, stamp, registration and estimated taxes, customs duties, fees, assessments and charges of any similar
kind whatsoever (including under Section 280G of the Code), (b) all interest, indexation differentials, penalties, fines, additions
to tax or additional amounts imposed by any taxing authority in connection with any item described in clause (a), (c) any transferee
or successor liability in respect of any items described in clauses (a) or (b) payable by reason of contract, assumption, transferee
liability, successor liability, operation of Applicable Law, or as a result of any express or implied obligation to assume Taxes
or to indemnify any other person, and (d) any liability for the payment of any amounts of the type described in clause (a) or (b)
payable as a result of being a member of an affiliated, consolidated, combined, unitary or aggregate group for any taxable period,
including under U.S. Treasury Regulations Section 1.1502-6(a) (or any predecessor or successor thereof of any analogous or similar
provision under Law) or otherwise.

 

I.           If
a Grantee makes an election under Section 83(b) of the Code to be taxed with respect to an Award as of the date of transfer of
Shares rather than as of the date or dates upon which the Grantee would otherwise be taxable under Section 83(a) of the Code, such
Grantee shall deliver a copy of such election to the Company upon or prior to the filing such election with the U.S. Internal Revenue
Service. Neither the Company nor any Affiliate shall have any liability or responsibility relating to or arising out of the filing
or not filing of any such election or any defects in its construction.

 

		XIX.	RIGHTS AS A SHAREHOLDER; VOTING AND DIVIDENDS.

 

A.           Subject
to Section ‎11.4, a Grantee shall have no rights as a shareholder of the Company with respect to any Shares covered by an Award
until the Grantee shall have exercised the Award, paid the Exercise Price therefor and becomes the record holder of the subject
Shares. In the case of 102 Awards or 3(9) Awards (if such Awards are being held by a Trustee), the Trustee shall have no rights
as a shareholder of the Company with respect to the Shares covered by such Award until the Trustee becomes the record holder for
such Shares for the Grantee’s benefit, and the Grantee shall not be deemed to be a shareholder and shall have no rights as
a shareholder of the Company with respect to the Shares covered by the Award until the date of the release of such Shares from
the Trustee to the Grantee and the transfer of record ownership of such Shares to the Grantee (provided however that the Grantee
shall be entitled to receive from the Trustee any cash dividend or distribution made on account of the Shares held by the Trustee
for such Grantee’s benefit, subject to any tax withholding and compulsory payment). No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property) or distribution of other rights for which the record
date is prior to the date on which the Grantee or Trustee (as applicable) becomes the record holder of the Shares covered by an
Award, except as provided in Section 14 hereof.

 

    	 	- 34 -	 

     

    

 

B.           With
respect to all Awards issued in the form of Shares hereunder or upon the exercise or (if applicable) the vesting of Awards hereunder,
any and all voting rights attached to such Shares shall be subject to Section 6.9, and the Grantee shall be entitled to receive
dividends distributed with respect to such Shares, subject to the provisions of the Company’s Articles of Association, as
amended from time to time, and subject to any Applicable Law.

 

C.           The
Company may, but shall not be obligated to, register or qualify the sale of Shares under any applicable securities law or any other
Applicable Law.

 

		XX.	NO REPRESENTATION BY COMPANY.

 

XXI.      By
granting the Awards, the Company is not, and shall not be deemed as, making any representation or warranties to the Grantee regarding
the Company, its business affairs, its prospects or the future value of its Shares. The Company shall not be required to provide
to any Grantee any information, documents or material in connection with the Grantee’s considering an exercise of an Award.
To the extent that any information, documents or materials are provided, the Company shall have no liability with respect thereto.
Any decision by a Grantee to exercise an Award shall solely be at the risk of the Grantee.

 

		XXII.	NO RETENTION RIGHTS.

 

XXIII.    Nothing
in this Plan, any Award Agreement or in any Award granted or agreement entered into pursuant hereto shall confer upon any Grantee
the right to continue in the employ of, or be in the service of the Company or any Subsidiary or Affiliate thereof as a Service
Provider or to be entitled to any remuneration or benefits not set forth in this Plan or such agreement, or to interfere with or
limit in any way the right of the Company or any such Subsidiary or Affiliate to terminate such Grantee's employment or service
(including, any right of the Company or any of its Affiliates to immediately cease the Grantee’s employment or service or
to shorten all or part of the notice period, regardless of whether notice of termination was given by the Company or its Affiliates
or by the Grantee). Awards granted under this Plan shall not be affected by any change in duties or position of a Grantee, subject
to Sections ‎6.6 through ‎6.8. No Grantee
shall be entitled to claim and the Grantee hereby waives any claim against the Company or any Subsidiary or Affiliate that he or
she was prevented from continuing to vest Awards as of the date of termination of his or her employment with, or services to, the
Company or any Subsidiary or Affiliate. No Grantee shall be entitled to any compensation in respect of the Awards which would have
vested had such Grantee’s employment or engagement with the Company (or any Subsidiary or Affiliate) not been terminated.

 

		XXIV.	PERIOD DURING WHICH AWARDS MAY BE GRANTED.

 

XXV.     Awards
may be granted pursuant to this Plan from time to time within a period of ten (10) years from the Effective Date, which period
may be extended from time to time by the Board. From and after such date (as extended) no grants of Awards may be made and this
Plan shall continue to be in full force and effect with respect to Awards or Shares issued thereunder that remain outstanding.

 

    	 	- 35 -	 

     

    

 

		XXVI.	AMENDMENT OF THIS PLAN AND AWARDS.

 

A.           The
Board at any time and from time to time may suspend, terminate, modify or amend this Plan, whether retroactively or prospectively.
Any amendment effected in accordance with this Section shall be binding upon all Grantees and all Awards, whether granted prior
to or after the date of such amendment, and without the need to obtain the consent of any Grantee. No termination or amendment
of this Plan shall affect any then outstanding Award unless expressly provided by the Board.

 

B.           Subject
to changes in Applicable Law that would permit otherwise, without the approval of the Company’s shareholders, there shall
be (i) no increase in the maximum aggregate number of Shares that may be issued under this Plan as Incentive Stock Options (except
by operation of the provisions of Section ‎14.1), (ii) no change in the class of persons eligible to receive Incentive Stock
Options, and (iii) no other amendment of this Plan that would require approval of the Company’s shareholders under any Applicable
Law. Unless not permitted by Applicable Law, if the grant of an Award is subject to approval by shareholders, the date of grant
of the Award shall be determined as if the Award had not been subject to such approval. Failure to obtain approval by the shareholders
shall not in any way derogate from the valid and binding effect of any grant of an Award, which is not an Incentive Stock Option.
Upon approval of an amendment to this Plan by the shareholders of the Company as set forth above, all Incentive Stock Options granted
under this Plan on or after such amendment shall be fully effective as if the shareholders of the Company had approved the amendment
on the same date.

 

C.           The
Board or the Committee at any time and from time to time may modify or amend any Award theretofore granted, including any Award
Agreement, whether retroactively or prospectively.

 

		XXVII.	APPROVAL.

 

A.           This
Plan shall take effect upon its adoption by the Board (the “Effective Date”).

 

B.           Solely
with respect to grants of Incentive Stock Options, this Plan shall also be subject to shareholders’ approval, within one
year of the Effective Date, by a majority of the votes cast on the proposal at a meeting or a written consent of shareholders (however,
if the grant of an Award is subject to approval by shareholders, the date of grant of the Award shall be determined as if the Award
had not been subject to such approval). Failure to obtain such approval by the shareholders within such period shall not in any
way derogate from the valid and binding effect of any grant of an Award, except that any Options previously granted under this
Plan may not qualify as Incentive Stock Options but, rather, shall constitute Nonqualified Stock Options. Upon approval of this
Plan by the shareholders of the Company as set forth above, all Incentive Stock Options granted under this Plan on or after the
Effective Date shall be fully effective as if the shareholders of the Company had approved this Plan on the Effective Date.

 

C.           102
Awards are conditional upon the filing with or approval by the ITA, if required, as set forth in Section ‎9.4‎9. Failure
to so file or obtain such approval shall not in any way derogate from the valid and binding effect of any grant of an Award, which
is not an 102 Award.

 

		XXVIII. 	RULES PARTICULAR TO SPECIFIC COUNTRIES; SECTION 409A.

 

A.           Notwithstanding
anything herein to the contrary, the terms and conditions of this Plan may be supplemented or amended with respect to a particular
country or tax regime by means of an appendix to this Plan, and to the extent that the terms and conditions set forth in any appendix
conflict with any provisions of this Plan, the provisions of such appendix shall govern. Terms and conditions set forth in such
appendix shall apply only to Awards granted to Grantees under the jurisdiction of the specific country or such other tax regime
that is the subject of such appendix and shall not apply to Awards issued to a Grantee not under the jurisdiction of such country
or such other tax regime. The adoption of any such appendix shall be subject to the approval of the Board or the Committee, and
if determined by the Committee to be required in connection with the application of certain tax treatment, pursuant to applicable
stock exchange rules or regulations or otherwise, then also the approval of the shareholders of the Company at the required majority.

 

    	 	- 36 -	 

     

    

 

B.           This
Section ‎25.2 shall only apply to Awards granted to Grantees who are subject to United States Federal income tax.

 

25.2.1           It
is the intention of the Company that no Award shall be deferred compensation subject to Code Section 409A unless and to the extent
that the Committee specifically determines otherwise as provided in Section ‎25.2.2, and the Plan and the terms and conditions
of all Awards shall be interpreted and administered accordingly.

 

25.2.2           The
terms and conditions governing any Awards that the Committee determines will be subject to Section 409A of the Code, including
any rules for payment or elective or mandatory deferral of the payment or delivery of Shares or cash pursuant thereto, and any
rules regarding treatment of such Awards in the event of a Change in Control, shall be set forth in the applicable Award Agreement
and shall be intended to comply in all respects with Section 409A of the Code, and the Plan and the terms and conditions of such
Awards shall be interpreted and administered accordingly.

 

25.2.3           The
Company shall have complete discretion to interpret and construe the Plan and any Award Agreement in any manner that establishes
an exemption from (or compliance with) the requirements of Code Section 409A.  If for any reason, such as imprecision in drafting,
any provision of the Plan and/or any Award Agreement does not accurately reflect its intended establishment of an exemption from
(or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision
shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by the Company
in a manner consistent with such intent, as determined in the discretion of the Company. If, notwithstanding the foregoing
provisions of this Section ‎25.2.3, any provision of the Plan or any such agreement would cause a Grantee to incur any additional
tax or interest under Code Section 409A, the Company shall reform such provision in a manner intended to avoid the incurrence by
such Grantee of any such additional tax or interest; provided that the Company shall maintain, to the extent reasonably
practicable, the original intent and economic benefit to the Grantee of the applicable provision without violating the provisions
of Code Section 409A.

 

25.2.4           Notwithstanding
any other provision in the Plan, any Award Agreement, or any other written document establishing the terms and conditions of an
Award, if any Grantee is a “specified employee,” within the meaning of Section 409A of the Code, as of the date of
his or her “separation from service” (as defined under Section 409A of the Code), then, to the extent required by Treasury
Regulation Section 1.409A-3(i)(2) (or any successor provision), any payment made to such Grantee on account of his or her separation
from service shall not be made before a date that is six months after the date of his or her separation from service. The Committee
may elect any of the methods of applying this rule that are permitted under Treasury Regulation Section 1.409A-3(i)(2)(ii) (or
any successor provision).

 

25.2.5           Notwithstanding
any other provision of this Section ‎25.2 to the contrary, although the Company intends to administer the Plan so that Awards
will be exempt from, or will comply with, the requirements of Code Section 409A, the Company does not warrant that any Award under
the Plan will qualify for favorable tax treatment under Code Section 409A or any other provision of federal, state, local, or non-United
States law. The Company shall not be liable to any Grantee for any tax, interest, or penalties the Grantee might owe as a result
of the grant, holding, vesting, exercise, or payment of any Award under the Plan.

 

    	 	- 37 -	 

     

    

 

		XXIX.	GOVERNING LAW; JURISDICTION.

 

XXX.     This
Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Israel, except
with respect to matters that are subject to tax laws, regulations and rules of any specific jurisdiction, which shall be governed
by the respective laws, regulations and rules of such jurisdiction. Certain definitions, which refer to laws other than the laws
of such jurisdiction, shall be construed in accordance with such other laws. The competent courts located in Tel-Aviv-Jaffa, Israel
shall have exclusive jurisdiction over any dispute arising out of or in connection with this Plan and any Award granted hereunder.
By signing any Award Agreement or any other agreement relating to an Award, each Grantee irrevocably submits to such exclusive
jurisdiction.

 

		XXXI.	NON-EXCLUSIVITY OF THIS PLAN.

 

XXXII.   The
adoption of this Plan shall not be construed as creating any limitations on the power or authority of the Company to adopt such
other or additional incentive or other compensation arrangements of whatever nature as the Company may deem necessary or desirable
or preclude or limit the continuation of any other plan, practice or arrangement for the payment of compensation or fringe benefits
to employees generally, or to any class or group of employees, which the Company or any Affiliate now has lawfully put into effect,
including any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term
or long-term incentive plans.

 

		XXXIII. 	MISCELLANEOUS.

 

A.           Survival.
The Grantee shall be bound by and the Shares issued upon exercise or (if applicable) the vesting of any Awards granted hereunder
shall remain subject to this Plan after the exercise or (if applicable) the vesting of Awards, in accordance with the terms of
this Plan, whether or not the Grantee is then or at any time thereafter employed or engaged by the Company or any of its Affiliates.

 

B.           Additional
Terms. Each Award awarded under this Plan may contain such other terms and conditions not inconsistent with this Plan as may
be determined by the Committee, in its sole discretion.

 

C.           Fractional
Shares. No fractional Share shall be issuable upon exercise or vesting of any Award and the number of Shares to be issued shall
be rounded down to the nearest whole Share, with in any Share remaining at the last vesting date due to such rounding to be issued
upon exercise at such last vesting date.

 

D.           Severability.
If any provision of this Plan, any Award Agreement or any other agreement entered into in connection with an Award shall be determined
to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable
and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction. In addition,
if any particular provision contained in this Plan, any Award Agreement or any other agreement entered into in connection with
an Award shall for any reason be held to be excessively broad as to duration, geographic scope, activity or subject, it shall be
construed by limiting and reducing such provision as to such characteristic so that the provision is enforceable to fullest extent
compatible with Applicable Law as it shall then appear.

 

    	 	- 38 -	 

     

    

 

E.           Captions
and Titles. The use of captions and titles in this Plan or any Award Agreement or any other agreement entered into in connection
with an Award is for the convenience of reference only and shall not affect the meaning or interpretation of any provision of this
Plan or such agreement.

 

*            *            *

 

    	 	- 39 -Exhibit
10.3

 

DEVELOPMENT,
MANUFACTURING AND 

COMMERCIALIZATION
AGREEMENT

 

This Development, Manufacturing and Commercialization
Agreement (the “Agreement”) is entered into as of April 27, 2015 (the “Effective Date”) between
Perrigo UK Finco Limited Partnership, a United Kingdom limited partnership (“Perrigo UK”), and Sol-Gel Technologies
Ltd., a limited liability company incorporated in Israel (“Sol-Gel”). Perrigo UK and Sol-Gel are sometimes
each referred to as a “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Perrigo UK is an Affiliate
(as defined herein) of Perrigo Company, a Michigan corporation (“Perrigo Company”) and Perrigo Company and its
Affiliates (collectively referred to as “Perrigo”) are in the business of developing, manufacturing and marketing
pharmaceutical products and Perrigo wishes to develop, formulate, manufacture and sell the Product (as defined herein) in accordance
with this Agreement; and

 

WHEREAS, Sol-Gel is in the business
of investing and participating in various businesses in the health care space, and Sol-Gel wishes to work with Perrigo in connection
with the Product (as defined herein) in accordance with this Agreement.

 

NOW THEREFORE, in consideration
of the mutual covenants and promises contained in this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the Parties agree as follows:

 

ARTICLE
I - DEFINITIONS

 

For purposes of this Agreement, the following
terms shall have the respective meanings set forth below:

 

		1.01	“Act” shall mean the United States Food, Drug and Cosmetic Act, as amended from time to time, and the regulations
promulgated thereunder.

 

		1.02	“Affiliate” shall mean a corporation or any other entity that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, the designated Party, but only for so long as the
relationship exists. “Control” shall mean: (i) ownership of shares of stock having at least 50% of the voting power
entitled to vote for the election of directors in the case of a corporation; and (ii) ownership of shares of stock having at least
50% of the voting power entitled to vote for the election of directors of the general partner in the case of a limited partnership.

 

		1.03	“Agreement” shall have the meaning set forth in the Preamble.

 

		1.03	“ANDA” shall mean, with respect to the Product, an Abbreviated New Drug Application
(as defined in Title 21 of the U.S Code of Federal Regulations) submitted to the FDA requesting approval to market the Product.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.04	“cGMP” shall mean those current Good Manufacturing Practices required by the
FDA to be followed in connection with the manufacture of pharmaceutical products, as defined from time to time by the Act and related
regulations or any successor laws or regulations governing the manufacture, handling, storage and control of the Product in the
United States, in the form of laws, regulations or guidance documents (including but not limited to advisory opinions, compliance
policy guides and guidelines), which guidance documents are being implemented within the pharmaceutical manufacturing industry
for such Product.

 

		1.05	“Commercialization” shall mean the activities undertaken to launch, market,
promote, sell, and service the Product or have it marketed, promoted, sold or serviced in the Territory.

 

		1.06	“Committee” shall have the meaning set forth in Section 2.1.

 

		1.07	“Confidential Information” shall mean information pertaining to each Party’s
business, marketing plans, marketing activities, market projections, products and related matters, including related technical
information, provided by one Party to the other pursuant to or in furtherance of this Agreement. Confidential Information hereunder
shall also include extracts, analyses, compilations, studies or other documents or records prepared by or for a recipient or any
of such recipient’s directors, officers, managers, employees, legal advisors, and financial advisors to the extent that such
extracts, analyses, compilations, studies, documents or records contain or otherwise reflect or are generated from the disclosing
Party’s Confidential Information. The existence of this Agreement shall constitute Confidential Information.

 

		1.08	“Development Costs” shall mean, with respect to a given Product, all costs (determined
in accordance with U.S. GAAP consistently applied) incurred by a Party prior to the Launch Date in connection with the program
for such Product hereunder.

 

		1.09	“Diligent Efforts” shall mean, (i) with respect to the development activities
for the Product contemplated hereunder, a Party’s use of commercially reasonable efforts and resources consistent with the
exercise of prudent business (and/or, if applicable, scientific) judgment, as applied by such Party to other pharmaceutical products
of similar potential, market size and legal and competitive environments, and (ii) with respect to Commercialization of the Product
contemplated hereunder, use of commercially reasonable efforts and resources consistent with the exercise of prudent business judgment
as applied by such Party to other pharmaceutical products of similar potential, market size and legal and competitive environments.

 

		1.11	“Dispute” has the meaning set forth in Section 14.1.

 

		1.12	“Effective Date” shall have the meaning set forth in the Preamble.

 

		1.13	“FDA” shall mean the United States Food and Drug Administration or any successor
United States governmental agency performing similar functions with respect to pharmaceutical products, or any foreign equivalent
agency or entity having jurisdiction over the manufacture, marketing and/or sale of the Product.

 

		1.14	“Fiscal Quarter” shall mean any of the three-month periods corresponding with
Perrigo’s fiscal quarters.

 

		1.15	“Freedom to Operate Analysis” shall have the meaning set forth in Section
7.2(b).

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.16	“Fully Allocated Costs” shall mean Perrigo’s, actual direct material costs
and labor costs as well as actual and direct fixed and variable overhead costs (including shrinkage, scrap, salvage and obsolescence)
for the production, packaging and labeling of the Product.

 

		1.17	“Gross Profits” shall mean an amount equal to the Net Sales for the applicable
Fiscal Quarter, less Fully Allocated Costs related to such Net Sales, as determined in accordance with GAAP, without any markup
for "transfer pricing" within the Perrigo group or otherwise, less [***] of such Net Sales to cover Perrigo’s sales,
marketing and distributing activities in respect to the Product.

 

		1.18	“Gross Sales” shall mean, , the total amount invoiced by Perrigo or any of its
Affiliates for Sales of the Product in the Territory to any Third Party, including, without limitation, customers, such as wholesalers,
drug chains and pharmacies,, as determined in accordance with GAAP, as well as the total value of any consideration or benefits
received by Perrigo or any of its Affiliates from a Third Party in exchange for Sales of the Product in the Territory; provided
that with respect to Sales in the Territory to any Third Party which are not arm's-length or in the ordinary course of business;
or (ii) for less than the seller is then charging in arm's-length transactions for comparable products, while taking into account
the then prevailing market conditions, the price invoiced and the consideration per Sale, shall be deemed to be no less than the
average Sale price of the Product in arm's-length ordinary course transactions by Perrigo or its Affiliate, as the case may be,
for purpose of determining "Gross Sales" with respect to such Sale.

 

		1.19	“Indemnified Party” shall have the meaning set forth in Section 11.2.

 

		1.20	“Indemnifying Party” shall have the meaning set forth in Section 11.2.

 

		1.21	“Intellectual Property” means (i) patents, patent applications and statutory
invention registrations, (ii) copyrights, including registrations and applications for registration thereof, (iii) trademarks,
including registrations, applications for registration thereof, and common law rights therein, (iv) design rights, and (v) confidential
or proprietary information, including trade secrets, know-how, materials and processes, including but not limited to analytical
methods and reference materials.

 

		1.22	“Launch Date” shall mean the date of first commercial sale of the Product in
the Territory by Perrigo or its Affiliates pursuant to the ANDA.

 

		1.23	“Litigation” shall have the meaning set forth in Section 7.1.

 

		1.24	“Net Sales” shall mean the Gross Sales (for purposes of determining whether
a given sale occurs during a computation period, Product will be considered sold as of the date of shipment by Perrigo to its customers),
less the sum of the following (to the extent actually incurred or accrued):

 

		a.	any and all credits for Product returns in the Territory during such Fiscal Quarter, including,
but not limited to, credits for returned, unsold, or short-dated Product, allowances granted or included in the invoice, cash discounts,
customer program accruals (overbills, administrative fees, Third Party rebates, sales brokerage, and volume rebates), other adjustments
and rebates, including but not limited to Medicaid and other state or governmental rebates, charge backs, floor stock adjustments,
and similar items that may be estimated in accordance with U.S. GAAP;

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		b.	shipping costs, sales and excise taxes, other consumption taxes, or other governmental charges
to the extent actually included in Gross Sales;

 

		c.	any receivables which have been included in Gross Sales in the books of Perrigo and are deemed
to be uncollectible according to Perrigo’s internal accounting principles and U.S. GAAP consistently applied. Such bad debt
deduction shall be applied to Net Sales in the period in which such receivables are written off and shall be exclusive of any bad
debt or uncollectible receivables of Perrigo unrelated to the Product. In the event that any such deducted bad debt is subsequently
collected, the amount collected shall be added to the Net Sales.

 

		1.25	“Orange Book” shall mean the Approved Drug Products book published by the FDA
most recently and for subsequent years during the term of this Agreement, including its printed, monthly supplements, and on the
electronic version of the Electronic Orange Book found at http://www.fda.gov/cder/ob/default.htm, or as the site address
is amended.

 

		1.26	“Party” or “Parties” shall have the meaning set forth in the Preamble.

 

		1.27	“Perrigo UK” shall have the meaning set forth in the Preamble.

 

		1.28	“Perrigo Intellectual Property” means any and all Intellectual Property of Perrigo
owned by or assigned to Perrigo as of the Effective Date of this Agreement.

 

		1.29	“Post-Launch Litigation” shall have the meaning set forth in Section 7.4.

 

		1.30	“Product” shall mean an A-rated generic version of Soolantra® (Ivermectin
1%) cream.

 

		1.31	“Product Specifications” shall mean the manufacturing, testing, labeling, storage
and quality control specifications for the Product as set forth in the ANDA as approved by the FDA.

 

		1.32	“Product Technology” means all Intellectual Property that specifically relates
to the Product and is conceived or reduced to practice by Perrigo, Sol-Gel and/or their Affiliates in the conduct of the program.

 

		1.33	“Regulatory Filing” shall have the meaning set forth in Section 8.2(b).

 

		1.34	“Raw Materials” shall mean all excipients, components, raw materials and any
other components required to manufacture, package and label the Product.

 

		1.35	“Regulatory Authority” shall mean any division of the FDA (as applicable) and
any other applicable governmental authority in the Territory.

 

		1.36	“Regulatory Filing” shall have the meaning given such term in Section 8.2(b)
hereof.

 

		1.37	“Sale”, shall mean, with respect to the Product,
the sale, distribution and any other arrangement in which monetary or other consideration is to be exchanged for the use of the
Product.

 

		1.38	“Sol-Gel” shall have the meaning set
forth in the Preamble.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		1.39	“Term” shall have the meaning set forth in Section 13.1.

 

		1.40	“Termination Event” shall have the meaning set forth in Section 13.2.

 

		1.41	“Territory” shall mean the United States, its possessions and territories.

 

		1.42	“Third Party” shall mean any entity or person which is not a party to this Agreement
and is also not an Affiliate of a Party to this Agreement.

 

		1.43	“Third Party Manufacturer” shall mean a Third Party which enters into a manufacture
and supply agreement with Perrigo for the manufacture and supply of the Product or Raw Materials.

 

		1.44	“U.S. GAAP” means United States generally accepted accounting principles.

 

ARTICLE
II - STEERING COMMITTEE

 

		2.1	Establishment and Composition.

 

Within 30 days of the Effective
Date, the Parties shall establish the Committee (“Committee”) to oversee Product development and clinical studies,
with Perrigo having the right to appoint up to 2 representatives on the Committee and Sol-Gel having the right to appoint up to
2 representatives of the Committee. One Committee member of each Party shall also be designated as the primary contact person for
his or her respective Party. One of the representatives selected by Sol-Gel shall chair the Committee.

 

		2.2	Responsibilities.

 

		a.	The Committee shall meet and/or confer periodically as needed during the period the program is
being implemented.

 

		b.	The Committee shall perform such other functions relating to the program as the Parties may agree.

 

		c.	All major program decisions or other decisions in connection with the implementation of this Agreement,
such as selecting any material Third Party contractors, including, without limitation, any contract research organization (CRO)
and the material terms of engagement of such contractors shall be decided and approved jointly by the Parties.

 

ARTICLE
III - DEVELOPMENT PROGRAM

 

		3.1	The Program.

 

The Parties shall work towards
the overall objective of Perrigo obtaining all FDA approvals necessary for the Commercialization of the Product. Within the program,
Perrigo shall use its Diligent Efforts to conduct all regulatory, scientific, clinical and technical activities necessary to develop
the Product, and prepare and file with the FDA the ANDA. Perrigo shall use its Diligent Efforts to pursue FDA approval of the ANDA
and gain FDA clearance to market the Product. A program budget shall be approved by the Parties based on their reasonable estimates
of the program costs, including the costs of all Third Party contractors which inter aila details all out-of-pocket clinical
study costs (including material) and the program budget shall be attached hereto as Schedule 3.1.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		a.	Perrigo shall, either directly or through its Third Party contractors, be responsible for the development
activities commencing on the Effective Date through acceptance of the ANDA by the FDA, including formulation, analytical work,
method validation, scale up and validation.

 

		b.	Perrigo shall prepare all appropriate protocols and conduct the required in vitro and in vivo bio-equivalence
studies to be undertaken pursuant to the program, provided however that to the extent that Third Party contractors are engaged,
including any CRO, Sol-Gel shall be consulted and its consent required pursuant to Section 2.2(c).

 

		c.	Perrigo shall use its Diligent Efforts to draft, submit and maintain the ANDA and obtain FDA approval
for the Commercialization of the Product.

 

		d.	Perrigo shall control all Litigation.

 

		e.	Perrigo shall grant Sol-Gel reasonable access to, or provide Sol-Gel with copies of, without additional
charge, cost or expense, any and all documentation, reports, Regulatory Filings and other communications with any Regulatory Authority,
or any Third Party contractor, as reasonably requested by Sol-Gel.

 

		f.	Perrigo shall provide to Sol-Gel periodic updates at Sol-Gel’s request regarding the status
of the program.

 

		3.2	Sharing of Costs.

 

Except as set
forth below, each Party shall bear its own costs in relation to the performance of this Agreement and Sol-Gel and Perrigo shall
each be responsible for [***]% of its internal Development Costs, including all costs related to ANDA submission and maintenance.

 

		a.	Sol-Gel and Perrigo shall [***] of in-vitro and non-clinical out-of-pocket development costs related
to the Product.

 

		b.	Sol-Gel shall be responsible for [***]%, and Perrigo shall be responsible for [***]%, of all out-of-pocket
clinical study costs (including materials) related to the Product as detailed in the program budget.

 

		c.	Sol-Gel and Perrigo [***] of all expenses related to Litigation (subject to Section 7.4 below).

 

		d.	In the event that the out-of-pocket clinical study costs (including materials) related to the Product
exceed the costs detailed in the program budget by more than 10%, then Perrigo and Sol-Gel shall [***] of all such excess costs.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
IV- DISCLOSURE OF INFORMATION; PERFORMANCE OF DUTIES

 

		4.1	Disclosure. Upon execution of this Agreement and during the Term, each Party shall disclose
to the other Party (and such Party’s Affiliates and designated representatives) such Confidential Information as is reasonably
requested regarding the program and Commercialization.

 

		4.2	Confidentiality. Except as specifically authorized by this Agreement, each Party shall,
for the Term and for 7 years after the expiration or termination of this Agreement, keep confidential, not disclose to others and
use only for the purposes provided for or permitted under this Agreement, the other Party’s Confidential Information. Notwithstanding
the foregoing, such Confidential Information may be (i) disclosed to Regulatory Authorities or other governmental agencies and
others where such Confidential Information is required to be included in Regulatory Filings permitted under the terms of this Agreement
or in patent applications filed within the United States Patent and Trademark Office or corresponding international patent offices;
(ii) provided to Third Parties under appropriate terms and conditions including confidentiality provisions substantially equivalent
to those in this Agreement, in connection with the receiving Party’s clinical or bioequivalence testing, consulting, regulatory
activities, manufacturing and marketing activities with respect to the Product undertaken pursuant to or as permitted by this Agreement;
(iii) published, if and to the extent such publication has been approved by both Parties; or (iv) disclosed to the extent required
by applicable laws or regulations or as ordered by a court or other regulatory body having competent jurisdiction. In each of the
foregoing cases (i) through (iv), the receiving Party shall disclose only the minimum of information required to be published or
disclosed. In the case of a required disclosure under clause (iv) above, the Party required to make the disclosure shall promptly
notify the original disclosing Party and shall provide reasonable assistance, if requested by the original disclosing Party and
at such disclosing Party’s expense, to assist the original disclosing Party in its attempts to prevent or limit the disclosure
or obtain confidential treatment of the Confidential Information.

 

		4.3	Exclusions. The obligations contained herein governing the use and disclosure of Confidential
Information shall not apply to any information which is (i) already known to the receiving Party prior to the date of disclosure
as evidenced by its written records made prior to such date; (ii) publicly known prior to or after disclosure other than through
unauthorized acts or omissions of the recipient; (iii) disclosed in good faith to the recipient by a Third Party lawfully and contractually
entitled to make such disclosure; or (iv) developed by or for the receiving Party without the use of any Confidential Information
of the disclosing Party, as evidenced by the receiving Party’s written records.

 

		4.4	Ownership. Ownership of Confidential Information shall remain with the disclosing Party.
Nothing herein is intended to transfer the ownership of any Confidential Information. All Confidential Information furnished to
the receiving Party hereunder (and all copies made by the receiving Party) will be returned to the disclosing Party or destroyed
immediately upon request. As an exception to the requirement to return or destroy materials incorporating Confidential Information,
the receiving Party may retain one copy of the Confidential Information in its legal files solely for the purposes of monitoring
its ongoing obligations under this Agreement.

 

		4.5	Compliance with Laws. Each Party shall comply with all laws and regulations applicable to
it in carrying out its responsibilities and duties as described in this Agreement. Each Party represents that neither it nor any
of its employees has been debarred or is subject to debarment proceedings by the FDA. If any such proceedings are commenced against
a Party hereto (or any of its employees) during the Term, such Party shall as promptly as practicable, but in no event later than
5 business days following the commencement of such proceedings, notify the other Party in writing and shall keep the other Party
informed, on a regular basis, of the status of such proceedings.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

ARTICLE
V - LICENSE AND OWNERSHIP

 

		5.1	Perrigo Intellectual Property. Except as otherwise provided in this Agreement, all Perrigo
Intellectual Property shall be and remains the property of Perrigo. Sol-Gel shall acquire no right, title or interest in the Perrigo
Intellectual Property.

 

		5.2	Product Technology. Perrigo shall solely own all right, title and interest in and to the
Product Technology. Sol-Gel hereby assigns to Perrigo all of its right, title and interest in and to the Product Technology. Sol-Gel
shall perform, during and after the Term, all acts that Perrigo reasonably deems necessary or desirable to permit and assist Perrigo,
at Perrigo’s expense, in obtaining, perfecting and enforcing the full benefits, enjoyment, rights and title throughout the
world in the Product Technology. Perrigo shall have the world-wide right to control the drafting, filing, prosecution, maintenance
and enforcement of patents covering the Product Technology and shall be fully responsible for related costs.

 

ARTICLE
VI - MANUFACTURE OF THE PRODUCT

 

		6.1	Manufacturing Responsibility.

 

		a.	Prior to the Launch Date, Perrigo shall use Diligent Efforts to manufacture the Product for the
pivotal in vitro and in vivo bioequivalence studies and the Product process validation batches. Manufacturing shall be designed
to enable Perrigo to lawfully market the Product in the Territory in accordance with the approved ANDA.

 

		b.	After the Launch Date and during the Term, Perrigo shall manufacture, test, release, sell, market
and distribute the Product in the Territory in accordance with this Agreement.

 

		6.2	Obligations of Perrigo. Without limiting the foregoing, Perrigo shall be responsible for:

 

		a.	filing and qualifying with the FDA the manufacturing site of Perrigo;

 

		b.	filing and maintaining distribution shipping records for the Product;

 

		c.	procuring the active pharmaceutical ingredient for the Product that, to the best of its knowledge,
does not violate, infringe, or otherwise conflict or interfere with the Intellectual Property of any Third Party in the Territory;

 

		d.	conducting all required testing including, without limitation, stability testing for each batch
of Product manufactured for use in bioequivalence studies contemplated under this Agreement; and conducting, as required by the
ANDA, cGMPs, and FDA regulations, as amended, any and all such testing for all validation batches and all commercial batches of
Product; and

 

		e.	manufacturing, packaging and labeling the Product according to applicable FDA regulations, and
all other applicable laws and regulations. Perrigo shall have the exclusive right to define (i) the shape, color, size, embossing
and imprinting of each unit or Product, and (ii) packaging and labeling, including package inserts, and all related artwork for
containers and any advertising.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		6.3	Quality Control. Perrigo shall manufacture, test, label, package, and ship all Product,
or cause the Product to be manufactured, tested, labeled, packaged, and shipped in accordance with the ANDA, Product Specifications,
cGMPs, this Agreement, and applicable law.

 

		6.4	Notice of Inspections. Perrigo shall notify Sol-Gel promptly of any inspection of its Affiliates’
facilities (or of any facilities of its licensees, distributors, contractors or agents), related to the Product by any Regulatory
Authority, including the FDA, and shall upon Sol-Gel’s request, send Sol-Gel copies of any written reports or correspondence
to or from any Regulatory Authority relating to such inspection.

 

		6.5	Recalls. Subject to Section 11.1 below, in the event that the FDA or any other Regulatory
Authority issues or requests a recall or takes similar action in connection with the Product, or in the event Perrigo determines
an event, incident or circumstance has occurred that may result in the need for a recall or market withdrawal, Perrigo shall promptly
advise Sol-Gel thereof. Any such market recall or withdrawal shall be controlled by Perrigo. Perrigo shall bear the expenses of
any recall including, without limitation and without duplication, the expenses of notification and destruction or return of the
recalled Product, the sum paid for the manufacture of the recalled Product, and costs relating to the testing, packaging, shipping
and retail trade related costs of the recalled Product. In the event that the recall is based upon acts whose fault cannot be attributed
to Perrigo (for example, if the FDA withdraws the entire product (brand and generic) from the market) or any of Perrigo’s
facilities (or of any facilities of its licensees, distributors, contractors or agents), including, if applicable, its Third Party
Manufacturer, the costs shall be allocated based upon the profit split set forth in Section 9.1.

 

ARTICLE
VII - IP LITIGATION

 

		7.1	Cooperation.

 

Subject to assuring that any
and all defense and/or legal privileges remain intact, each Party shall provide reasonable cooperation to the other Party in its
efforts to defend against any patent litigation in the United States alleging infringement by the Product. In the event that such
litigation is threatened or actually filed prior to the Launch Date, such lawsuit or threat of such lawsuit shall be defined as
“Litigation.” To this end, the Parties have entered into a Common Legal Interest/Joint Defense Agreement dated
as of March 6, 2015.

 

		7.2	Intellectual Property Review.

 

		a.	Perrigo shall control any Intellectual Property issues that may arise regarding the Product, including
without limitation, the selection and retention of outside legal counsel. Nonetheless, the Parties shall reasonably cooperate to
ensure that the development, manufacture, marketing and sale of the Product does not infringe the Intellectual Property rights
of any Third Party, each using commercially reasonable efforts to recommend and implement measures to avoid infringement and/or
develop evidence to invalidate or render unenforceable Intellectual Property owned by a Third Party.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		b.	Perrigo shall be responsible for obtaining from outside legal counsel opinions as to whether the
Product as developed and manufactured by Perrigo, including Perrigo’s formulation, process and/or active pharmaceutical ingredient,
would infringe any Third Party Intellectual Property (such determination of outside counsel the “Freedom to Operate Analysis”).
Perrigo shall be responsible for (i) analyzing such Freedom to Operate Analysis as it pertains to the development, manufacture,
marketing and/or sale of the Product in the Territory; and for (ii) analyzing the infringement, validity, and/or enforceability
of Intellectual Property identified in the Freedom to Operate Analysis.

 

		7.3	Patent Certification. The Parties agree that as of the Effective Date there are several
patents listed in the Orange Book for the Product for which a Paragraph IV certification is expected to be filed and may have to
be litigated.

 

		7.4	Litigation and Settlement. In the event the Product is the subject of Litigation or any
actual or threatened litigation based on alleged infringement of a patent, whether listed in the Orange Book subsequent to the
Launch Date or of a patent asserted by any Third Party after the Launch Date (collectively “Post-Launch Litigation(s)”)
in the United States, [***] shall direct and control any such Litigation and/or Post-Launch Litigation and shall make Diligent
Efforts to conduct any such Litigation and/or Post-Launch Litigation to a successful conclusion, including settlement. [***] shall
notify [***] and seek [***] input prior to ceasing to defend, settling or otherwise disposing of Litigation and/or Post-Launch
Litigation or a claim in the Litigation and/or Post-Launch Litigation, but the final decision in that regard shall be made by [***].
[***].

 

ARTICLE
VIII - COMMERCIALIZATION AND SUPPLY

 

		8.1	Commercialization.

 

		a.	As soon as reasonably practical after final approval by the FDA of the ANDA, Perrigo shall use
Diligent Efforts to Commercialize the Product in the Territory and to maximize the Gross Profits. Perrigo shall not engage any
Third Party as a distributor or reseller of the Products in the Territory or permit a Third Party to engage directly or indirectly
in the Sale of the Product (by way of license or otherwise), but shall itself engage in all the required sales, marketing and distributing
activities in respect to the Product. [***]. Perrigo shall have the sole and exclusive right to establish and control the prices and all other terms and conditions for
the sales of the Product in Territory and shall do so in good faith without derogating from Sol-Gel's right to benefit from
the commercialization of the Product.

 

		8.2	Regulatory Responsibilities.

 

		a.	Following the approval by the FDA of the ANDA, Perrigo shall be solely responsible for maintaining
the ANDA including any necessary periodic reporting requirements. Furthermore, Perrigo shall be responsible for all adverse-event
reporting as required by the Act and related regulations, or any successor laws or regulations and any and all other applicable
laws in the Territory. Perrigo shall use Diligent Efforts to perform, or cause to be performed, these activities in accordance
with this Agreement and in compliance in all material respects with the requirements of any applicable law, and the Product Specifications.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

 

		b.	Perrigo shall own all right, title and interest in and to any and all regulatory filings, applications,
permits and authorizations, including, but not limited to the ANDA, relating to the approval, manufacture, marketing, sale or licensing
of the Product or ingredients for inclusion therein as may be required or useful in the Territory (a “Regulatory Filing”).
Perrigo shall also be responsible for filing, obtaining, maintaining, and shall retain the exclusive control of and responsibility
for, each such Regulatory Filing including all amendments, supplements and all other communications with the applicable Regulatory
Authority.

 

ARTICLE
IX - PAYMENTS

 

		9.1	Payments by Perrigo to Sol-Gel. Within 45 days after the end of each Fiscal Quarter in which
the Product is sold in the Territory, Perrigo shall pay Sol-Gel 50% of Perrigo’s Gross Profits accruing during the immediately-preceding
Fiscal Quarter. Payment shall be accompanied by a report detailing Gross Sales, Net Sales (along with sufficient details on adjustments),
and Gross Profits (along with sufficient details on the Fully Allocated Costs).

 

		9.2	Manner of Payment. All payments due hereunder shall be made in United States dollars and,
unless otherwise agreed in writing, shall be made by wire transfer to such bank as the Parties may designate in writing. Both Parties
shall pay all taxes and levies that by applicable law (including existing treaties for bilateral taxation) they are required to
pay on all payments accruing under this Agreement and shall withhold from sums otherwise payable to the other Party all such taxes
and levies and shall pay the amount of such withholding taxes to the proper governmental authority in a timely manner. Each Party
shall notify the other Party of its intention to withhold in advance of payment being made and shall promptly transmit to the other
Party an official tax certificate or other evidence of such tax obligations together with proof of payment from the relevant governmental
authority of all amounts deducted and withheld sufficient to enable such Party to claim such payment of taxes. To the extent that
either Party withholds any taxes or levies on payments to the other Party pursuant to applicable law, both Parties agree that such
expense shall be an expense of, and borne solely by, the payee and the withholding Party shall not be obligated to gross-up any
such amounts; provided that the withholding Party shall provide the other Party with reasonable assistance to enable such Party
to recover such withholding taxes as permitted by applicable law.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		9.3	Books of Account; Audit. Each Party shall maintain true and complete books of account containing
an accurate record of all data necessary for the proper computation of amounts costs incurred by it during the program and payments
due from it under this Agreement and shall cause its Affiliates, to maintain such records. Each Party shall have the right, through
an independent certified public accounting firm mutually and reasonably agreed to by the Parties, to audit the books and records
of the other Party as such books and records relate to this Agreement, at any time within 3 years after the date of the payment
or charges to which they relate (but not more than once in each calendar year or once with regard to any period unless a material
discrepancy or error is found, in which case the number of audits shall be in the reasonable discretion of the auditing Party)
for the purpose of verifying the amount of such payments or charges and the accuracy of such books and records. Audits shall be
made during normal business hours (and without undue disruption to the business or personnel of the Party being audited) at the
place of business of the Party being audited. The Parties agree that information furnished as a result of any such audit shall
be limited to a written statement by such certified public accounting firm to the effect that it has reviewed the books and records
of the Party being audited (or of any Affiliate thereof if applicable) and either (i) the amounts paid or charged under this Agreement
are in conformity with such books and records and the applicable provisions of this Agreement, or (ii) setting forth any required
adjustments. The fees and expenses of the accounting firm performing such verification shall be borne by auditing Party. If any
such examination shows any underpayment or overpayment, or overcharge or undercharge, a correcting payment or refund shall be made
within 30 clays after receipt of the written statement described above provided the Party being audited agrees with the findings
of the certified public accounting firm performing the audit. If the Party being audited disagrees with such findings, the
Parties will attempt, in good faith, to resolve the difference. If after 30 days the Parties fail to settle the difference, the
dispute resolution provisions of Article XIV will be followed. Notwithstanding the foregoing, if any such examination indicates
that the Party being audited has either overpaid or been overpaid by more than 5% of the total amount owing for such audited period,
then the Party being audited shall promptly pay the auditing Party the reasonable out-of-pocket costs and expenses actually incurred
in conducting such audit.

 

ARTICLE
X - REPRESENTATIONS AND WARRANTIES

 

		10.1	Warranties.

 

		a.	Each Party represents and warrants that neither the execution and delivery of this Agreement by
such Party nor its performance hereunder conflicts with or results in any violation or breach of, or constitutes (with or without
due notice or lapse of time or both) a default under any of the terms or conditions of any note, bond, mortgage, indenture, license,
agreement or other instrument or obligation to which it is a party or by which it or any of its properties or assets may be bound,
or violates any statute, law, rule, regulation, writ, injunction, judgment, order or decree of any court, administrative agency
or governmental authority binding on it or any of its properties or assets, excluding any such breaches or defaults that, individually
or in the aggregate, would not have a material adverse effect on its business or financial condition or its ability to perform
its obligations hereunder.

 

		b.	Perrigo represents and warrants that all Products manufactured and sold under this Agreement in
the Territory shall be manufactured, packaged, labeled, stored and sold according to the ANDA, cGMPs, and all applicable laws and
regulations.

 

ARTICLE
XI - INDEMNIFICATION/INSURANCE

 

		11.1	Mutual Indemnity. Each Party shall indemnify, defend and hold harmless the other Party and
its Affiliates, employees or directors from any and all costs, expenses, damages, judgments and liabilities (including reasonable
attorneys’ fees and the cost of any recalls) incurred by or rendered against the other Party or its Affiliates, employees
or directors in any Third Party claim made or suit brought to the extent resulting from any of the following: (i) a breach by such
Party or any of the subcontractors retained by such Party of its obligations, representations and warranties pursuant to this Agreement
(except to the extent that such claim or suit is based on the other Party’s negligence or breach of its representations and
warranties, or its other obligations under this Agreement); (ii) the breach by such Party of its obligations under this Agreement;
(iii) the negligence or willful misconduct of such Party or its subcontractors in connection with the Product; or (iv) solely with
respect to Perrigo, Perrigo's or its Affiliate's manufacture outside of the Product Specifications, use or sale of the Product.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		11.2	Indemnification Process. Upon the occurrence of an event giving rise to indemnification
hereunder, the Party entitled to indemnification hereunder (the “Indemnified Party”) shall (i) give prompt notice
to the Party providing indemnification (the “Indemnifying Party”), (ii) permit the Indemnifying Party’s
attorneys to handle and control the defense of such claims, at the Indemnifying Party’s expense, and (iii) shall cooperate
in the defense thereof. There shall be no settlements, whether agreed to in court or out of court, without the prior written mutual
consent of the Parties, except that the Indemnifying Party may settle a claim without the consent of the Indemnified Party if (i)
the settlement is purely monetary, (ii) the Indemnifying Party hereunder admits in writing its liability to the Indemnified Party
hereunder, and (iii) concurrently with such settlement, the Indemnifying Party pays the full amount owed hereunder. Notwithstanding
the foregoing, in the event the Indemnifying Party does not assume the defense of any such claim or litigation in accordance with
the terms hereof within the earlier of (i) 90 days following written notice from the Indemnified Party or (ii) the 15th day preceding
the due date for response to any complaint filed, then the Indemnified Party may defend against such claim or litigation in such
manner as it may deem appropriate, including, but not limited to, settling such claim or litigation, after giving notice of the
same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate. In any action by the Indemnified Party
seeking indemnification from the Indemnifying Party in accordance with the provisions hereof, the Indemnifying Party shall not
be entitled to object to the manner in which the Indemnified Party defended such claim or the amount of or nature of any such settlement.

 

		11.3	Mitigation. In the event of any occurrence which may result in either Party becoming required
to indemnify the other Party under this Article 11, the Indemnified Party shall, to the extent the Indemnified Party is
aware of any mitigating measures that are available to it and commercially reasonable, attempt in good faith to mitigate the damages
that may be payable by the Indemnifying Party hereunder.

 

		11.4	Apportionment of Damages and Post-Launch Litigation Costs. In the event of a Third Party
claim relating to [***] Perrigo does not have an obligation of indemnification in accordance with Section 11.1 even if Sol-Gel
had been added as a defendant to such Third Party claim, [***] to the extent such Third Party claim is not covered by the Parties’
insurance.

 

		11.5	Insurance.

 

		a.	General Requirements. Perrigo shall obtain and maintain at its expense during the Term and
for a period of at least five (5) years after the termination or expiration of this Agreement, all insurance coverage required
by law as well as appropriate insurance coverage to protect against any and all claims or liabilities that may arise directly or
indirectly as a result of its performance of its obligations under this Agreement. Insurance shall be placed with a carrier with
an A.M. Best rating of at least A- for financial strength and a size rating of at least VIII. Coverage shall be occurrence based,
unless occurrence coverage is unavailable, in which case “claims made” coverage is acceptable, provided retroactive
coverage is provided prior to the inception of the business relationship between Perrigo and Sol-Gel. None of the requirements
contained herein as to coverage types or limits of insurance required to be maintained by the Parties shall be construed to limit
in any manner the liability of either Party to the other Party hereunder.

 

		b.	Subcontractors. In the event that Perrigo subcontracts any of its obligations, then it shall
require the same insurance coverage and limits from its subcontractors, and require said subcontractors to so certify insurance
coverage to such Party prior to the commencement of any work.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		c.	Proof of Insurance. Perrigo shall deliver to Sol-Gel, upon request, Certificates of Insurance
evidencing the following: (i) the effective and expiration dates of the policies; (ii) for each of the policies, the limits of
liability per occurrence and in the aggregate; (iii) that Sol-Gel has been named as an additional insured under each of the policies;
and (iv) that Sol-Gel shall be given thirty (30) calendar days advance written notice prior to any cancellation, non-renewal or
material change of any of the policies. Perrigo shall provide to Sol-Gel current Certificates of Insurance evidencing renewal of
insurance throughout the Term promptly after any change or renewal of the policies.

 

		d.	Specific Minimum Coverages. At a minimum, each Party shall keep the following policies in
place during the Term:

 

Required Coverages and Minimum Policy Limit

 

	Required Coverage	 	Policy Limit
	 	 	 
	Worker’s Compensation	 	Statutory
	Employer’s Liability	 	$1,000,000 (U.S.)
	 	 	 
	Bodily Injury & Property Damage	 	
        $2,000,000

        (U.S. Combined Single Limit,

        per occurrence)

	 	 	 
	Automobile Liability	 	
        $1,000,000

        (U.S. Combined Single Limit,

        per occurrence)

	 	 	 
	Products Liability	 	
        $10,000,000

        (U.S. Combined Single Limit,

        per occurrence)

	 	 	 
	Umbrella/Excess Liability	 	
        $5,000,000

        (U.S. Combined Single Limit,

        per occurrence)

 

ARTICLE
XII - LIMITATION OF LIABILITY

 

		12.1	EXCEPT FOR THE PARTIES’ INDEMNIFICATION OBLIGATIONS UNDER ARTICLE XI, IN NO EVENT
SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR INDIRECT DAMAGES, WHETHER THE CLAIM IS
BASED UPON CONTRACT, WARRANTY, NEGLIGENCE OR STRICT LIABILITY THEORIES OR OTHERWISE RELATES TO THE FAILURE TO PERFORM ANY OBLIGATIONS
SET FORTH HEREIN.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

ARTICLE
XIII - TERM AND TERMINATION: MODIFICATION OF RIGHTS

 

		13.1	Term. The term of this Agreement shall commence on the Effective Date and shall continue
until the lapse of a twenty (20) year period from the Launch Date or until the occurrence of a Termination Event pursuant to Section
13.2 (the “Term”).

 

		13.2	Termination Events. This Agreement shall only be terminated prior to its scheduled expiration
upon the occurrence of any of the events set forth in this Section 13.2 (each a “Termination Event”):

 

		a.	The Parties may terminate this Agreement at any time by written mutual agreement.

 

		b.	Either Party may terminate this Agreement upon a material breach by the other Party; provided that
the terminating Party shall provide the breaching Party with a written notice reasonably detailing such breach and such breach
or default is not cured within 30 days after receipt of such notice.

 

		c.	Sol-Gel may terminate this Agreement upon 10 days written notice to Perrigo, in the event that
prior to the Launch Date, Sol-Gel in its good faith judgment determines that a significant adverse change has occurred and that
Perrigo’s potential market for the Product envisaged at the time of entering into this Agreement has been reduced by [***],
including without limitation, a reduction in the market due to regulatory changes, or the entering into the market of two generic
competitors, including an authorized generic. It is clarified that in the event of such termination, Perrigo may continue the program
and may Commercialize the Product without payment to Sol-Gel and Perrigo shall assume all development costs related to the program
that are due and payable following the termination of this Agreement. If however, Perrigo determines to terminate the program,
then any expenses, or future cancellation fees, which were approved by the Committee prior to the termination date and which cannot
be cancelled or mitigated, shall be reimbursed by Sol-Gel in accordance with Section 3.2.

 

		d.	Either
                                         Party may terminate this Agreement upon 10 days written notice to the other Party, in
                                         the event that Perrigo’s external counsel determines that Perrigo’s Product
                                         formulation or manufacturing process infringes at least one valid claim of an issued,
                                         non-expired United States patent and, as a result, Perrigo decides not to Commercialize
                                         the Product.

 

		e.	Without prior written notice, a Party may terminate in the event that: (i) the other Party is declared
insolvent or bankrupt by a court of competent jurisdiction; (ii) a voluntary petition of bankruptcy is filed in any court of competent
jurisdiction by such other Party; or (iii) this Agreement is assigned by such other Party for the benefit of creditors. It is clarified
however that once Sol-Gel has completed its investment in the Product development, Perrigo shall not be entitled to terminate the
Agreement pursuant to this section.

 

		f.	Either Party may terminate this Agreement upon 30 days written notice to the other Party, in the
event that Gross Profits relating to sales of the Product do not exceed [***].

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		13.3	Rights on Termination. Termination of this Agreement for any reason shall be without prejudice
to (i) either Party’s rights under this Agreement with respect to claims arising out of events occurring prior to such termination;
(ii) either Party’s right to receive all payments owed or accrued to it under this Agreement for periods prior to the date
of termination; and (iii) any other remedies which either Party may otherwise have. In the event of termination based on Sections
13.2 (b), 13.2(d) or 13.2 (e) (with Perrigo being the breaching in the case of Section 13.2(b), the terminating Party
(in the case of Section 13.2(d), or the insolvent Party (in the case of Section 13.2 (e)), Perrigo shall grant to
Sol-Gel an exclusive license to all rights, title and interest in and to the Perrigo Intellectual Property and to Product Technology
for the purpose of allowing Sol-Gel to commercialize the applicable Product in the Territory. If Sol-Gel does commercialize the
Product, Sol-Gel will pay Perrigo [***]. In case of termination based on Section 13.2(b) with Perrigo being the breaching
Party or if Perrigo terminates under Section 13.2(d), Perrigo will (if so elected by Sol-Gel) manufacture the Product for
Sol-Gel until the expiration of the conclusion of the last day of the 20th full calendar year following the Launch Date of the
Product and charge the Fully Allocated Costs plus a [***]. In the event of termination based on Section 13.2(e), with Perrigo
being the insolvent Party, the license to the Perrigo Intellectual Property and the Product Technology granted herein will be deemed
a license of rights to Intellectual Property for purposes of Section 365(n) of the U.S. Bankruptcy Code and Sol-Gel will retain
and may fully exercise all of its rights and elections under and in accordance with the U.S. Bankruptcy Code.

 

ARTICLE
XIV - DISPUTE RESOLUTION

 

		14.1	Dispute Resolution.

 

		a.	Except as otherwise provided in subsection (b) of this Section 14.1, all disputes or claims
which may arise under, out of or in connection with this Agreement (each, a “Dispute”) will be referred in writing
by the Party raising the Dispute to the Committee for attempted resolution by good faith negotiations. If the Dispute remains unresolved
for more than 10 business days after the notice of such Dispute, the Parties will submit the Dispute to the next step in the dispute
resolution process set forth in subsection (b).

 

		b.	If any Dispute is not resolved in accordance with subsection (a), the Dispute will be referred
in writing to Sol-Gel’s executive responsible for the business unit for which this Agreement pertains and to Perrigo’s
executive responsible for the business unit for which this Agreement pertains for attempted resolution by good faith negotiations.
If they are unable to resolve any Dispute within 10 business days after the referral of such Dispute to them, the Parties shall
be allowed to utilize any dispute resolution process.

 

ARTICLE
XV - MISCELLANEOUS

 

		15.1	Waiver and Amendment. Failure of any Party to require, in one or more instances, performance
by the other Party in strict accordance with the terms and conditions of this Agreement shall not be deemed a waiver or relinquishment
of the future performance of any such terms or conditions or of any other terms and conditions of this Agreement. A waiver by either
Party of any term or condition of this Agreement shall not be deemed or construed to be a waiver of any other term or condition
of this Agreement. All rights, remedies, undertakings, obligations and agreements contained in this Agreement shall be cumulative
and none of them shall be a limitation of any other remedy, right, undertaking, obligation or agreement of either Party. This Agreement
may not be amended except in writing, signed by both Parties.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		15.2	Relationship of the Parties. For all purposes of this Agreement, Perrigo and Sol-Gel shall
be deemed to be independent entities and anything in this Agreement to the contrary notwithstanding, nothing herein shall be deemed
to constitute Perrigo and Sol-Gel as partners, joint ventures, co-owners, an association or any entity separate and apart from
each Party itself, nor shall this Agreement constitute any Party hereto (or any of such Party’s personnel) an employee or
agent, legal or otherwise, of the other Party for any purposes whatsoever. Neither Party hereto is authorized to make any statements
or representations on behalf of the other Party or in any way obligate the other Party, except as expressly authorized in writing
by said other Party. Anything in this Agreement to the contrary notwithstanding, no Party hereto shall assume nor shall be liable
for any liabilities or obligations of the other Party, whether past, present or future.

 

		15.3	Headings. The headings set forth at the beginning of the various Articles of this Agreement
are for reference and convenience and shall not affect the meanings of the provisions of this Agreement.

 

		15.4	Notices. All notices hereunder shall be delivered by facsimile (confirmed by overnight delivery),
or by overnight delivery with a reputable overnight delivery service, to the following address of the respective Parties:

 

	If to Sol-Gel:	
        Sol-Gel Technologies Ltd.

         

        Weizmann Science Park

        7 Golda Meir St.

        Ness Ziona 74036, Israel

        Attn: Chief Executive Officer

        Phone: +972-8-9313433

        Fax: +972-8-93134346

	 	 
	If to Perrigo:	
        Perrigo UK Finco Limited Partnership

         

        Wrafton, Braunton

        Devon EX33 2DL

        England

        Attn: Perrigo International Holdings II, Inc.

        General Partner

         

        and

         

        c/o Perrigo Company

        515 Eastern Avenue

        Allegan, Michigan 49010

        Attn: Chief Executive Officer

        Facsimile: 269-673-1386

	 	 
	With a copy to:	
        Perrigo Company

        515 Eastern Avenue

        Allegan, Michigan 49010

        Attn: General Counsel

        Facsimile: 269-673-1386

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

All notices shall be deemed to be effective
on the day of receipt. Either Party may change the address at which notice is to be received by written notice pursuant to this
Section 15.4.

 

		15.5	Severability. If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid or unenforceable, it shall be stricken and the remaining provisions shall remain in full force and effect. However,
if a provision is stricken so as to significantly alter the economic arrangements of this Agreement, the Parties agree to negotiate
in good faith modifications to this Agreement to effectuate the initial intent of this Agreement.

 

		15.6	Assignment. This Agreement shall not be assigned by either Party without the prior written
consent of the other Party, which consent shall not be unreasonably withheld, except that either Party may assign this Agreement,
in whole or in part, to any successor (including the surviving company in any consolidation, reorganization or merger) or successor
in interest to such Party’s Product-related business or to an Affiliate of such Party. This Agreement will be binding upon
any permitted assignee of either Party. No assignment shall have the effect of relieving any Party to this Agreement of any of
its obligations hereunder.

 

		15.7	Event of Force Majeure. Neither Party shall be responsible or liable to the other hereunder
for the failure or delay in the performance of this Agreement due to any civil unrest, war, fire, earthquake, act of terrorism,
hurricane, accident or other casualty, or any labor disturbance or act of God or the public enemy, or any other contingency beyond
the Party’s reasonable control. In the event of the applicability of this Section 15.7, the Party failing or delaying
performance shall use its Diligent Efforts to eliminate, cure and overcome any of such causes and resume the performance of its
obligations. Upon the occurrence of an event of force majeure, the Party failing or delaying performance shall promptly notify
the other Party, in writing, setting forth the nature of the occurrence, its expected duration and how such Party’s performance
is affected. The failing or delaying Party shall resume performance of its obligations hereunder as soon as practicable after the
force majeure event ceases.

 

		15.8	Limitation of Disclosure. Except as otherwise may be required by applicable laws, regulations,
rules or orders, including without limitation the rules and regulations promulgated by the United States Securities and Exchange
Commission, and except as may be authorized in Section 15.9, no information concerning this Agreement and the transactions
contemplated herein shall be made public by either Party without the prior written consent of the other.

 

		15.9	Publicity. Neither Party shall make any publicity releases, interviews or other dissemination
of information concerning this Agreement or its terms, or either Party’s performance hereunder, to communication media, financial
analysts or others without the prior written approval of the other Party. Notwithstanding anything to the contrary in this Agreement,
the Parties understand and agree that either Party, may, if so required, disclose some or all of the information included in this
Agreement or other Confidential Information of the other Party (a) in order to comply with its obligations under the law, including
the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended; (b) in
order to comply with the listing standards or agreements of any national or international securities exchange, including the Tel
Aviv Stock Exchange, the NASDAQ Stock Market or the New York Stock Exchange or other similar laws of a governmental authority;
(c) to respond to an inquiry of a governmental authority or Regulatory Authority as required by law; or (d) in a judicial, administrative
or arbitration proceeding. In any such event referred to in clause (c) or (d) the Party making such disclosure shall to the extent
legally permitted (i) provide the other Party with as much advance notice as reasonably practicable of the required disclosure,
(ii) reasonably cooperate with the other Party in any attempt to prevent or limit the disclosure, and (iii) limit any disclosure
to the specific purpose at issue.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

		15.10	Survival. Articles IV, V, VII, X, XI and XII and Sections 6.5, 9.3 and this
Section 15.10 shall survive the termination for any reason of this Agreement.

 

		15.11	Power; Authorization. Each Party represents that is has all requisite power and corporate
authority to enter into and perform its obligations in accordance with this Agreement. Perrigo Company guarantees to Sol-Gel the
performance of Perrigo under this agreement. The above obligation of the Perrigo Company constitutes a continuing guarantee of
performance to the extent that Perrigo has failed to cure (within 30 days) any default of its obligations and shall be absolute
and unconditional.

 

		15.12	Entire Agreement. This Agreement, including the appendices hereto, sets forth the entire
understanding between the Parties hereto as to the subject matter hereof and supersedes all other documents, agreements, verbal
consents, arrangements and understandings by or between the Parties with respect to the subject matter hereof.

 

		15.13	Limitation of Grant. Nothing in this Agreement shall be construed as granting by implication,
estoppel, or otherwise, any license or rights than otherwise set forth herein.

 

		15.14	Governing Law. This Agreement shall he governed by, and construed, and enforced in accordance
with the substantive laws of the State of New York, without giving effect to its rules concerning conflicts of laws.

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

     

    

  

IN WITNESS WHEREOF, the Parties hereto
have caused this Agreement to be executed as of the date first written above by their duly authorized representatives.

 

	PERRIGO UK FINCO LIMITED PARTNERSHIP	 	SOL-GEL TECHNOLOGIES LTD.
	 	 	 	 	 
	By:	Perrigo International Holdings II, Inc.	 	 	 
	 	General Partner	 	 	 
	 	 	 	 	 
	Signature:	/s/ John T. Hendrickson	 	Signature:	/s/ Alon Seri-Levy
	 	 	 	 	 
	Name:	John T. Hendrickson	 	Name:	Alon Seri-Levy
	 	 	 	 	 
	Title:	Executive Vice President	 	Title:	Chief Financial Officer
	 	 	 	 	 
	Date:	April 29, 2015	 	Date:	April 29, 2015

 

We hereby agree to that stated in Section
15.11 above and undertake to act accordingly.

 

	PERRIGO COMPANY	 
	 	 	 
	Signature:	/s/ John T. Hendrickson	 
	 	 	 
	Name:	John T. Hendrickson	 
	 	 	 
	Title:	Executive Vice President	 
	 	 	 
	Date:	April 29, 2015	 

 

    
[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission.  Confidential treatment has been requested with respect to the omitted portions.

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