Document:

EX-4.1

 Exhibit 4.1 

EXECUTION VERSION 
 LSB INDUSTRIES,
INC., 
 THE GUARANTORS PARTY HERETO 

and 
 UMB BANK, n.a., as Trustee
and Notes Collateral Agent 
  
  

FIRST SUPPLEMENTAL INDENTURE 

Dated as of September 7, 2016 to 

INDENTURE 
 Dated as of
August 7, 2013 
 among 

LSB INDUSTRIES, INC., 
 THE
GUARANTORS PARTY THERETO 
 and 

UMB BANK, n.a., as Trustee and Notes Collateral Agent 
  

 
 7.75% Senior
Secured Notes Due 2019 

 FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
September 7, 2016, among LSB Industries, Inc., a Delaware corporation (the “Company”), the Guarantors party hereto and UMB Bank, n.a., a national banking association, as trustee (in such capacity, the
“Trustee”) and as collateral agent (in such capacity, the “Notes Collateral Agent”). Capitalized terms used herein but not otherwise defined shall have the meaning assigned to such terms in the Indenture (as defined
below). 
 WITNESSETH: 

WHEREAS, the Company executed and delivered to the Trustee an Indenture dated as of August 7, 2013 among the Company, the Guarantors
party thereto, the Trustee and the Notes Collateral Agent (the “Indenture”), pursuant to which the Company’s 7.75% Senior Secured Notes Due 2019 (the “Securities”) were issued; 

WHEREAS, in order to permit the Company to make certain Restricted Payments not currently permitted by the terms of the Indenture, the Company
has solicited (the “Consent Solicitation”) the Holders, upon the terms and subject to the conditions set forth in the Notice of Consent Solicitation dated August 23, 2016 (the “Notice”) and the accompanying
Consent Form (the “Consent Form” and, together with the Notice and any other documents related to the Consent Solicitation, the “Consent Documents”), to direct the Trustee and Notes Collateral Agent to execute and
deliver certain amendments to the Indenture as set forth in Article I hereof (the “Amendments”); 
 WHEREAS,
Section 9.02 of the Indenture provides that, subject to certain exceptions inapplicable hereto, the Company, the Guarantors, the Trustee and the Notes Collateral Agent may amend the Indenture and the Securities with the consent of the Holders
of at least a majority in principal amount of the Securities then outstanding (the “Requisite Consents”); 
 WHEREAS, in
connection with the Consent Solicitation, Holders that have validly delivered and have not validly withdrawn a consent to the Amendment on a timely basis (the “Consenting Holders”) are entitled to receive a consent fee (the
“Consent Fee”) with respect to the Securities in respect of which they have validly consented, payable only if all conditions thereto set forth in the Consent Documents are satisfied or waived by the Company (the “Consent
Fee”); 
 WHEREAS, the Consenting Holders constitute the Holders of at least a majority in aggregate principal amount of the
Securities now outstanding and are willing to direct the Trustee and the Notes Collateral Agent to execute and deliver this Supplemental Indenture; 

WHEREAS, consistent with the practice of The Depository Trust Company (“DTC”), DTC has authorized direct participants in DTC
set forth in the position listing of DTC as of the date hereof to approve this Supplemental Indenture as if they were Holders of the Securities held of record in the name of DTC or the name of its nominee; 

WHEREAS, each of the Trustee and the Notes Collateral Agent is hereby directed by the Consenting Holders to execute and deliver this
Supplemental Indenture in its capacity as such; 
 WHEREAS, the execution and delivery of this Supplemental Indenture have been duly
authorized by the Company and the Guarantors and all conditions and requirements necessary to make this instrument a valid and binding agreement have been duly performed and complied with; and 

NOW, THEREFORE, in consideration of the above premises, and for the purpose of memorializing the Amendment consented to by the Holders, each
party agrees, for the benefit of the others and for the equal and ratable benefit of the Holders of the Securities, as follows: 
 ARTICLE
I 
 AMENDMENT OF INDENTURE 

Section 1.1 Amendments to Payment of Securities. 

  
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 Section 4.01 of the Indenture is hereby amended by amending and restating such
Section 4.01 in its entirety as follows: 
 The Company shall promptly pay the principal of and interest (with respect to all Securities
outstanding after the consummation of the 2016 Notes Redemption, with retroactive effect to August 1, 2016, at a rate equal to 8.50% per annum, it being agreed that from and after such date, each and every reference in this Indenture and
any Securities to the stated interest rate applicable to the Securities shall be automatically deemed amended to refer to a stated interest rate of 8.50% per annum to the extent necessary to give effect to the foregoing) on the Securities on
the dates and in the manner provided in the Securities and in this Indenture. Principal and interest shall be considered paid on the date due if on such date the Trustee or the Paying Agent holds in accordance with the Indenture money sufficient to
pay all principal and interest then due. 
 The Company shall pay interest on overdue principal at the rate specified therefor in the
Securities, and it shall pay interest on overdue installments of interest at the same rate to the extent lawful. 
 Section 1.2 Amendments to
Limitation on Additional Indebtedness. 
 Section 4.03(b)(14) of the Indenture is hereby amended by amending and restating such
Section 4.03(b)(14) as follows: 
 (14) additional Indebtedness of the Company and its Restricted Subsidiaries in an aggregate principal
amount not to exceed $50,000,000 at any time outstanding (which amount may, but need not be, incurred in whole or in part under the Credit Agreement); provided, that after the 2016 12.0% Notes Redemption, the aggregate principal amount of Other Pari
Passu Lien Obligations that may be outstanding at any time pursuant to this clause (14) shall not exceed $25,000,000 (and any other Indebtedness outstanding under this clause (14) shall be unsecured or secured on a junior basis); 

Section 1.3 Amendments to Limitation on Restricted Payments. 

Section 4.04(b) of the Indenture is hereby amended by (i) deleting the “.” at the end of clause (13) thereof and
inserting “; or” in lieu thereof and (ii) inserting a new clause (14) immediately following such clause (13) as follows: 

(14) so long as no Default or Event of Default shall have occurred and be continuing (or would otherwise result therefrom), Restricted Payments
made by the Company to redeem, purchase or otherwise acquire shares of the Series E Redeemable Preferred Stock with the Net Cash Proceeds of the Climate Control Sale in an aggregate amount not to exceed $45,000,000; provided, that no Restricted
Payments shall be permitted to be made pursuant to this clause (14) unless and until the Company shall have delivered an irrevocable notice of redemption to (A) the applicable Holders in accordance with Section 3.03 necessary to
effect the 2016 Notes Redemption and (B) the holder of the Company’s 12.0% Senior Secured Notes due 2019 in accordance with Section 2.04 of the Note Purchase Agreement necessary to effect the 2016 12.0% Notes Redemption. 

Section 1.4 Amendments to Limitations on Asset Sales. 

Section 4.06(I)(b) of the Indenture is hereby amended by amending and restating the first paragraph of such Section 4.06(I)(b) as
follows: 
 (b) Upon consummation of an Asset Sale covered by this Section 4.06(I) other than the Climate Control Sale (the Net Cash
Proceeds of which shall be applied in accordance 

  
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with Section 4.18 and, to the extent of any excess, as determined by the Company in its sole discretion), the Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash
Proceeds relating to such Asset Sale within 365 days of receipt thereof: 
 Section 4.06(II)(b) of the Indenture is hereby amended by
amending and restating the first paragraph of such Section 4.06(I)(b) as follows: 
 (b) Upon consummation of an Asset Sale covered by
this Section 4.06(II) other than the Climate Control Sale (the Net Cash Proceeds of which shall be applied in accordance with Section 4.18 and, to the extent of any excess, as determined by the Company in its sole discretion), the Company
shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset Sale within 365 days of receipt thereof: 

Section 1.5 New Covenant with respect to Climate Control Sale Net Cash Proceeds. 

Article 4 of the Indenture is hereby amended by inserting a new Section 4.18 at the end thereof as follows: 

SECTION 4.18. Climate Control Sale Net Cash Proceeds. The Company shall, or shall cause such applicable Restricted Subsidiary to, as promptly
as practicable following the effectiveness of the First Supplemental Indenture, and substantially concurrently with each other, consummate the 2016 12.0% Notes Redemption and 2016 Notes Redemption. 

Section 1.6 Amendments to Release of Collateral. 

Section 11.03(a) of the Indenture is hereby amended by (i) deleting the “.” at the end of clause (6) thereof and
inserting “; or” in lieu thereof and (ii) inserting a new clause (7) immediately following such clause (6) as follows: 

(7) in the case of any Net Cash Proceeds held in a Collateral Account, to (i) release such Net Cash Proceeds to the extent not subject to
the repurchase offer provisions of Section 4.06, (ii) enable the application thereof as permitted by Section 4.06 (including, without limitation, Section 4.06(III)) or (iii) release such Net Cash Proceeds to the extent the
aggregate amount of such Net Cash Proceeds remaining in such Collateral Account does not exceed $10,000,000. 
 Section 1.7 Amendments to
Definitions. 
 Section 1.01 of the Indenture is hereby amended by amending and restating the first clause (1) of the
definition of “Consolidated Fixed Charge Coverage Ratio” as follows: 
 (1) the incurrence or repayment of any Indebtedness or the
repurchase, redemption or retirement of any Preferred Stock of such Person or any of its Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the need to make such calculation and any incurrence or repayment of other
Indebtedness or repurchase, redemption or retirement of other Preferred Stock (and the application of the proceeds thereof), other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes
pursuant to working capital facilities, occurring during the Four Quarter Period or at any time subsequent to the last day of the Four Quarter Period and on or prior to the Transaction Date, as if such incurrence, repayment, repurchase, redemption
or retirement, as the case may be (and the application of the proceeds thereof), occurred on the first day of the Four Quarter Period; and 

Section 1.01 of the Indenture is hereby amended by amending and restating clause (19) of the definition of “Permitted
Liens” as follows: 

  
 - 3 - 

 other Liens securing Obligations which do not exceed $50,000,000 at any one time outstanding;
provided, that after the 2016 12.0% Notes Redemption, the aggregate principal amount of Other Pari Passu Lien Obligations that may be secured by Liens pursuant to this clause (19) shall not exceed $25,000,000 at any one time outstanding (and
any other Obligations secured pursuant to this clause (19) shall be secured by Liens ranking junior to the Liens on the Collateral); 

Section 1.01 of the Indenture is hereby amended by adding the following definitions in appropriate alphabetical order: 

“2016 12.0% Notes Redemption” means the redemption of $50,000,000 in aggregate principal amount of the Company’s 12.0% Senior
Secured Notes due 2019 at a redemption price of 106% with Net Cash Proceeds of the Climate Control Sale, together with the payment of related fees and expenses in connection therewith. 

“2016 Notes Redemption” means the redemption of $50,000,000 in aggregate principal amount of the Notes at the applicable redemption
price provided hereunder with Net Cash Proceeds of the Climate Control Sale, together with the payment of related fees and expenses in connection therewith. 

“Climate Control Sale” means the Asset Sale arising from the sale of the Company’s climate control business, as disclosed in the
Current Report on Form 8-K of the Company filed on July 8, 2016. 
 “First Supplemental Indenture” means the First
Supplemental Indenture, dated on or about September 7, 2016, by and among the Company, the Guarantors party thereto, the Trustee and the Notes Collateral Agent. 

“Note Purchase Agreement” means the Note Purchase Agreement, dated as of November 9, 2015 (as amended, modified or supplemented
by that certain letter agreement, dated as of August 8, 2016), by and among the Company, the subsidiaries of the Company party thereto, and LSB Funding LLC, as note purchaser. 

“Series E Redeemable Preferred Stock” means the Company’s Series E cumulative redeemable Class C preferred stock, no par value,
210,000 shares issued and outstanding as of August 23, 2016. 
 ARTICLE II 

MISCELLANEOUS PROVISIONS 

Section 2.1 Effect of Supplemental Indenture. 

From and after the Amendment Operative Time (as defined below), the Indenture shall be amended and supplemented in accordance herewith. Each
reference in the Indenture to “this Indenture,” “hereunder,” “hereof,” or “herein” shall mean and be a reference to the Indenture as amended and supplemented by this Supplemental Indenture unless the context
otherwise requires. The Indenture as amended and supplemented by this Supplemental Indenture shall be read, taken and construed as one and the same instrument, and every Holder of the Securities heretofore or hereafter authenticated and delivered
under the Indenture as supplemented by this Supplemental Indenture shall be bound thereby. 
 Section 2.2 Effectiveness. 

This Supplemental Indenture shall become effective and binding on the Company, the Guarantors, the Trustee, the Notes Collateral Agent and
every Holder of the Securities heretofore or hereafter authenticated and 

  
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delivered under the Indenture, upon the execution and delivery by the parties to this Supplemental Indenture; provided, however, that the Amendment shall become operative only upon the payment of
the Consent Fee to the Consenting Holders in accordance with the terms and conditions of the Consent Solicitation (the “Amendment Operative Time”). 

Section 2.3 Indenture Remains in Full Force and Effect. 

Except as supplemented and amended hereby, all provisions in the Indenture shall remain in full force and effect. 

Section 2.4 Confirmation of Indenture. 

The Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects confirmed and ratified. 

Section 2.5 Conflict with Trust Indenture Act. 

If any provision of this Supplemental Indenture limits, qualifies or conflicts with another provision hereof or of the Indenture which is
required to be included in this Supplemental Indenture or the Indenture by any of the provisions of the Trust Indenture Act of 1939, such required provision shall control. 

Section 2.6 Severability. 
 In case
any one or more of the provisions in this Supplemental Indenture shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 

Section 2.7 Successors and Assigns. 

All agreements in this Supplemental Indenture shall be binding upon and inure to the benefit of the respective successors and assigns of the
Company, the Guarantors, the Trustee and the Notes Collateral Agent. 
 Section 2.8 Certain Duties and Responsibilities of the Trustee and Notes
Collateral Agent. 
 In entering into this Supplemental Indenture, the Trustee and the Notes Collateral Agent shall be entitled to the
benefit of every provision of the Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee and the Notes Collateral Agent, whether or not elsewhere herein so provided. 

Section 2.9 Governing Law. 
 THIS
SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY OTHER CONFLICTS OF LAW PROVISIONS. 

Section 2.10 Counterparts. 
 This
Supplemental Indenture may be executed in any number of counterparts by the parties hereto on separate counterparts, each of which, when so executed and delivered, shall be deemed an original, but all such counterparts shall together constitute one
and the same instrument. 
 [Signature Page Follows] 

  
 - 5 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written. 
  

					
	COMPANY:
	LSB INDUSTRIES, INC.
		
	By:	 	 /s/ Mark Behrman

		 	Name:	 	Mark Behrman
		 	Title:	 	Executive Vice President – Finance and Chief Financial Officer
	
	GUARANTORS:
	CHEMEX I CORP.
	CHEMICAL PROPERTIES L.L.C.
	CHEMICAL TRANSPORT L.L.C.
	CHEROKEE NITROGEN L.L.C.
	CHEROKEE NITROGEN HOLDINGS INC.
	
	CONSOLIDATED INDUSTRIES L.L.C.
	EDC AG PRODUCTS COMPANY L.L.C.
	EL DORADO ACID, L.L.C.
	EL DORADO ACID II, L.L.C.
	EL DORADO AMMONIA L.L.C.
	EL DORADO CHEMICAL COMPANY
	EL DORADO NITRIC L.L.C.
	LSB CAPITAL L.L.C.
	LSB CHEMICAL L.L.C.
	
	PRYOR CHEMICAL COMPANY
	SUMMIT MAC.H1NE TOOL MANUFACTURING L.L.C.
	TRISON CONSTRUCTION, INC.
	ZENA ENERGY L.L.C.
		
	By:	 	 /s/ Mark Behrman

		 	Name:	 	Mark Behrman
		 	Title:	 	Executive Vice President
	
	EL DORADO NITROGEN, L.P.
	By: El Dorado Acid, L.L.C., as general partner
		
	By:	 	 /s/ Mark Behrman

		 	Name:	 	Mark Behrman
		 	Title:	 	Executive Vice President

  
 - 6 - 

					
	TRUSTEE AND NOTES COLLATERAL AGENT:
	UMB BANK, N.A.
		
	By:	 	 /s/ Janet Lambert

		 	Name:	 	Janet Lambert
		 	Title:	 	Vice President

  
 - 7 -Exhibit 4.1

 

MOBILEYE VISION TECHNOLOGIES LTD.

EMPLOYMENT AGREEMENT

 

This Employment Agreement
is effective as of 1/10/2016 (the “Effective Date”), by and between Mobileye Vision Technologies Ltd.,
an Israeli company with its principal offices at 13 Hartum st., Jerusalem, Israel (the “Company”), and Erez Dagan
(I.D. Number 34213355) an individual whose address at Ezra Hasofer 15 Tel Aviv (the “Employee”).

 

W I T N E S S E T H:

 

WHEREAS, Employee and
employer relations exist between the parties since 2/2/2003;

 

And WHEREAS, starting
from 1/10/2016 the Company desires to employ the Employee as its SVP Advanced Technologies and Strategy, and the Employee desires
to be employed by the Company in that position on the terms and conditions set forth below:

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual promises and covenants herein contained, the parties hereto agree as follows:

 

		1.	EXCLUSIVITY OF THE CONTRACT

 

		1.1.	This contract is a personal employment contract and therefore, save as expressly otherwise provided
herein:

 

		1.1.1.	For the purposes of this Agreement and with respect to the employment of the Employee by the Company,
no terms or provisions of any current or future (a) general collective labor agreements and/or arrangements, (b) special collective
labor agreements, (c) existing or future Extension Orders; (d) any industry custom or practice (e) any other agreements between
the Company and its employees, shall apply to this Agreement or to the employment relationship between the Company and the Employee.

 

		1.1.2.	The Employee shall not be entitled to any payment, right or benefit which is not expressly mentioned
in this contract, including, but without prejudice to the generality of the foregoing, any payments, rights, retirement conditions
or other benefits whatsoever, to which the employees of the Company or of any company under its control are now or in future entitled,
which are not mentioned in this contract.

 

		1.1.3.	Any results of negotiations conducted between the Employee’s Committee or the Employee’s
Representative and the Company shall not apply to the Employee and shall not amend, add or detract from the terms and conditions
contained herein.

 

		1.2.	The Employee hereby represents in favor of the Company that no provision of any law, regulation,
agreement or other document prohibits him from entering this Agreement. Neither the execution nor delivery of this Agreement nor
the performance by the Employee of his duties and other obligations hereunder violate or will violate

 

    	 	 	 

     

    

 

any prior
employment agreement, contract, or other instrument to which the Employee is a party or by which he is bound.

 

		1.3.	The Employee undertakes to keep the contents of this Agreement confidential and not to disclose
the existence or contents of this Agreement to any third party without the prior written consent of the Company.

 

		2.	THE EMPLOYEE’S DUTIES AND OBLIGATIONS

 

		2.1.	The Employee shall from 1/10/16 serve as SVP Advanced Technologies and Strategy and shall report
to Amnon Shashua. The Employee shall observe and comply with all resolutions, regulations and directions from time to time made
or given by the Company.

 

		2.2.	The Employee shall use his best endeavors to promote the interests of the Company. The Employee
shall devote all of his business and professional time, attention, energy, skill, learning and best efforts to the affairs of the
Company and shall perform his duties provided for hereunder at such locations as is directed by the Company. The Employee shall
use his best endeavors to protect the good name of the Company and shall not perform any act that shall bring the Company into
disrepute.

 

		2.3.	In the event that the Employee shall discover that he has or might have at some point in the future
any direct or indirect personal interest in any of the Company’s business or a conflict of interest with the duties required
of him by virtue of his employment with the Company, immediately upon such discovery the Employee shall so inform the board of
directors of the Company in writing.

 

		2.4.	The Employee shall not during the term of this Agreement engage directly or indirectly in rendering
services of a business, professional or commercial nature to any other person, firm, or corporation, whether or not such services
are rendered for gain, profit or other pecuniary advantage.

 

		2.5.	The Employee shall not directly or indirectly accept any commission, rebate, discount, or gratuity
in cash or in kind, from any person who has or is likely to have a business relationship with the Company.

 

		3.	SCOPE OF EMPLOYMENT & OVERTIME PAYMENT

 

		3.1.	The Employee shall carry out his duty according to the accustomed hours of the Company for Employees
serving in his role or in that scale and as determined by the Employee’s supervisor as defined in section 2.1. It is clarified
that all salaries payments as well employee benefits and the supplementary payments  in this agreement reflect a full time
employment status however employee will be compensated proportionally to the percentage of his employment status as shall be determined
from time to time (hereinafter: “The Part-Time Percentage”). Unless agreed upon differently, the Percentage shall
be 100%. 

 

    	 	 	 

     

    

 

		3.2.	In addition to section 3.1 aforementioned, the Employee will be required, from time to time and
in accordance with the Company needs, to work overtime and on days of rest (hereinafter: “overtime”).The
overtime norm must not, at any circumstances, exceed 40 hours per month.

 

		3.3.	The Employee shall be entitled to compensation for overtime worked by him in the total sum of 14,015
NIS (hereinafter: “overtime payment”). The overtime payment shall be calculated as follows: the salary as was
set on section 4.1 divided by 186 hours (each month) multiplied by the overtime norm as was set on section 3.2 aforementioned and
multiplied by 1.333 (the average between 125% overtime compensation to 150% overtime compensation).

 

		3.4.	It is hereby clarified and agreed upon that the Employee will not be entitled to work overtime
exceeding the norm specified in section 3.2 above, without written permission given by his supervisor – as defined in section
2.1- in advance. Should a written permission be given, the Employee will be entitled to additional overtime payment regarding the
overtime hours exceeding the norm specified in section 3.2 above, in accordance with reported hours and as was permitted by his
supervisor.

 

		4.	SALARY

 

		4.1.	In consideration for the performance of all his duties on behalf of the Company according to this
contract, the Employee shall be entitled to a monthly global salary (the “Salary”) of 49,000 New Israeli Shekels
(“NIS”), and also to supplementary payments (i.e. overtime payment), to social benefits and to senior employees
insurance, as specified in section 5 below (hereinafter: “The Benefits”).

 

		4.2.	It is understood and agreed upon the parties that the Salary, the supplementary payments and The
Benefits are in gross values and shall be subject to tax deduction at source, as required by any relevant law.

 

		4.3.	It is understood and agreed upon the parties that the Salary, the supplementary payments and the
Benefits shall be deemed as the full and total consideration that the Employee is entitled to, either according to this contract
or according to any law applicable, due to the fulfillment of his obligations according to this contract, including overtime work
and work at rest days.

 

		4.4.	The Employee shall devote his full working hours, attention, diligence and energy to his employment
under this Agreement.

 

		4.5.	The Salary and the Benefits for each preceding month shall be paid in the next month not later
than the 9th day of the month. The Company shall make the appropriate payments on behalf of the Employee, out of the
money that was deducted from the Salary, the supplementary payments or from the Benefits, to the income tax authorities, the Institute
of National Insurance and any other relevant authority.

 

    	 	 	 

     

    

   

		5.	BENEFITS

 

		5.1.	Keren Hishtalmut Fund. 

 

		5.1.1.	At the end of each month during the employment of the Employee hereunder (or such other day as
is consistent with the Company’s general practices), the Company shall pay an amount equal to 71/2% of the Employee’s
“Insured Salary” for the preceding month, but in no event an amount which exceeds the amount deductible by the
Company for tax purposes, to a Keren Hishtalmut Fund as recognized by the Income Tax Authorities designated by the Company, or
if agreed to by the Company, designated by the Employee (the “Fund”), and shall deduct from the Salary of the
Employee an amount equal to up to 21/2% of the Insured Salary for the preceding month and pay the same on behalf
of the Employee, to the Fund.

 

		5.1.2.	It is hereby clarified that for the purposes of section 5.1 only, the expression “Insured
Salary” shall be interpreted as the outcome of the following sum: 80% multiplying Salary plus Overtime
payment plus Convalescence pay plus Travel expenses plus High tech Bonus.

 

		5.2.	Convalescence Pay. The Employee shall be entitled to convalescence pay equal to 255 NIS
per month.

  

		5.3.	Transportation Expenses. The Employee shall be entitled to reimbursement of transportation expenses
that shall not exceed 495 NIS.

 

		5.4.	Special High-Tech Bonus. The Employee shall be entitled to a monthly global special high-tech bonus
equal to 6,235 NIS (hereinafter: The “High-Tech Bonus”). The High-Tech Bonus shall be paid to the employee together
with the salary.

 

		5.5.	Severance Pay and Managers Insurance.  

  

		5.5.1.	At the end of each month during the employment of Employee hereunder (or such other day as is consistent
with the Company’s general practices), the Company shall pay the following sums:

 

		5.5.1.1.	A sum, equal to 6.25% of the sum of the Insured Salary for the preceding month to a Managers Insurance
(Bituach Minahalim) policy (the “Policy”) through an agency to be selected by the Company, or if agreed to by
the Company, selected by the Employee toward a pension fund. In addition, at the beginning of each month the Company shall deduct
from the Salary of the Employee an amount equal to 5.75% of the Insured Salary for the preceding month, and shall pay such amount
on behalf of the Employee to such Policy.

 

		5.5.1.2.	A sum, equal to eight percent and one third of a percent
(8.33%) of the Insured Salary to a Severance fund, chosen
by the Company (Hereinafter:

 

    	 	 	 

     

    

 

“The Severance
Policy”). The sum mentioned in this section shall be deemed as substitution for severance pay, according to Article 15
of the Severance Pay Act, 5723-1963.

 

		5.5.1.3.	It is hereby clarified that for the purposes of section 5.5 only, the expression “Insured
Salary” shall be interpreted as the outcome of the following sum: Salary plus Overtime payment plus High tech Bonus.

 

		5.5.2.	Payments by the Company towards the Policy under this section 5.5 shall be on account of and not
in addition to any statutory obligation to pay severance pay.

 

		5.5.3.	The Employee hereby declares that the payments under this section 5.5 are done on his authority
and consent.

 

		5.6.	Transfer of Policy and Fund. All sums accumulated as premiums in respect of the Policy,
with the exception of sums accumulated in lieu of severance pay, and the Fund (whether paid by the Company or by the Employee),
shall entirely belong to the Employee, and the Company shall take all such actions as are necessary to effect the same. The Company
undertakes that upon the termination by the Company, or the Employee, of the Employee’s employment with the Company, it shall take
all such actions and complete all such forms as are necessary to fully, automatically and unconditionally release the Policy and
the Keren Hishtalmut Fund to the Employee or as the Employee shall direct. Notwithstanding the aforesaid in this sub-section, in
the event of termination of the agreement by the Company for just cause, the Company may release or withhold the severance Policy
at its sole and absolute discretion.

 

		5.7.	Vacation days. The employee will be entitled to 24 business days’ vacation in each
calendar year. It is hereby understood that it is in the interests of each of the parties that the Employee takes advantage of
the vacation days granted to him for purposes of rest and relaxation and that the Company may, in its sole discretion, require
the Employee to take advantage of any days vacation as may become owing to him. Notwithstanding anything to the contrary stated
herein, vacation days may be carried forward from one calendar year to the next to the extent permitted by law, provided that the
Employee shall not be entitled to accumulate more than 25 days’ vacation entitlement at any one time. The Company may, in
its sole discretion, allow the redemption (for payment) of cumulated vacation days, but it hereby agreed that the Company is under
no obligation to do so. Vacation days will be coordinated with the management and are contingent upon the Company’s approval.
For purposes of this Section 5.7 a “Business Day” shall mean any Sunday through Friday during which the Company is open
for business.

 

The Employee
hereby acknowledges and agrees that the Company will be entitled to determine, in its discretion, mandatory vacations, during Sukkot
and/or Passover holidays, or otherwise. If, at any time, the mandatory vacation days exceed the remaining vacation days accrued
for the benefit of Employee, the Employee agrees and hereby requests in advance from the Company to allow him/her to accumulate
negative vacation days up to a cap allowed by the Company and the rest of such excess days shall be regarded as leave without pay
(“LWOP”). Company shall have

 

     

     

    

 

the sole discretion
to decide if and to what extent to accept such request on a ‘case by case’ basis. If the Company does not agree to accumulate negative
vacation days for any reason, or – if the Company does allow such accumulation but ultimately it becomes unfeasible for any
reason, whether by law or otherwise, the Employee agrees and hereby requests in advance that such excess leave days will be regarded
as LWOP. In addition, and in any other event that Employee accumulated vacation days in excess of the total vacation days available
for Employee’s benefit, the Employee agrees and hereby requests in advance that such vacation days in excess will be regarded as
LWOP. If, at the time of termination of Employee’s employment for any reason, Employee has accrued negative vacation days, the
Employee agrees that all amounts due from the Employee in relation to such negative vacation days will be deducted by the Company
from Employee’s salary and/or from any other amount payable by the Company to the Employee or with respect to Employee’s employment.

 

		5.8.	Sick Leave. The Employee shall be entitled to fully paid sick leave pursuant to the Sick
Pay Law 5736 - 1976.

 

		5.9.	Expense Reimbursement. The Company will reimburse the Employee for any documented, out-of-pocket
expenses from time to time properly incurred by the Employee in connection with his employment by the Company and approved in advance
by the management of the company in its absolute discretion.

 

		6.	RESERVE DUTY

 

The Employee shall bring to the notice of the
Company any call-up order for reserve duty upon receipt of the order. The Employee shall continue to receive the salary provided
for hereunder during periods of military reserve duty. The Employee hereby assigns and undertakes to pay to the Company any amounts
received from the National Insurance Institute as compensation for such reserve duty service.

 

		7.	CONFIDENTIALITY, NON-COMPETITION, TECHNOLOGY ASSIGNMENT

 

		7.1.	The Employee agrees to maintain the terms and conditions contained in this Agreement in strict
confidence and shall not disclose to any third party, including any other employee of the Company, without the prior written
consent of the Company.

 

		7.2.	The Employee shall execute an Employee Proprietary Information and Inventions Agreement in the
form of the Agreement attached hereto as Annex A (the “Proprietary Information Agreement”).

 

		7.3.	Employee agrees that it would be difficult to measure damage to the Company from any breach of
Employee of the promises set forth in this Section 7 or in the Proprietary Information Agreement, and that injury to the Company
from any such breach would be impossible to calculate, and that money damages would therefore be an inadequate remedy for any such
breach. Accordingly, Employee agrees that if he breaches any provision of this Section 7 or of the Proprietary Information Agreement,
the Company will be entitled, in addition to all other remedies it may have, to an

 

     

     

    

 

injunction or
other appropriate orders to restrain any such breach by Employee without showing or proving any actual damage sustained by the
Company.

 

		8.	TERMINATION

 

		8.1.	The Company and the Employee shall be entitled to terminate this Agreement for any reason by giving
thirty days’ prior written notice of termination to the other party (“Prior Notice”).

 

		8.2.	The Company may in its discretion terminate the Employee’s employment immediately (that is,
without giving notice as specified in Section 8.1 above) by giving him notice together with payment of such sum as would have been
payable to him in respect of the notice period specified in Section 8.1 (“Payment in Lieu of Notice”). The employment
of the Employee shall be deemed to have ceased on the date of the receipt of the Payment in Lieu of Notice.

 

		8.3.	The Company shall be entitled to terminate this Agreement immediately for the following reasons:

 

		(i)	The Employee commits a material breach of the Proprietary Information Agreement, as shall be determined
in the reasonable opinion of the directors of the Company; or

		(ii)	The employee commits a material breach of this Agreement and for a period of ten consecutive
days fails to cure such breach; or

		(iii)	The Employee performs any act that entitles the Company legally to dismiss him without paying him
any severance pay in connection with such dismissal; or

		(iv)	for purposes of this Agreement, “disability” means a physical or mental
infirmity which impairs the Employee’s ability to substantially perform his duties under this Agreement which continues for a
period of at least ninety (90) consecutive days; or

		(v)	The Employee is convicted of a crime of moral turpitude or dishonesty; or

 

		8.4.	In the event that the Employee does not deliver to the Employer the Prior Notice as required by
section 8.1, the Employee shall pay compensation to the Employer of an amount equal to the salary to which the Employee would have
been entitled during the period of the Prior Notice. The Employer shall be entitled to deduct such sum from any monies due and
payable to the Employee.

 

		8.5.	In the event that this Agreement shall be terminated in circumstances which would entitle the Employee
to receive severance pay under the Severance Pay Law 5723-1963, the Employer shall transfer the Policy to the Employee.

 

		8.6.	Subject to the receipt by the Employee of Prior Notice from the Employer, the Employee hereby undertakes
in favor of the Company that prior to termination of this Agreement for any reason, he shall train his successor and provide him
with orderly explanations of all information and knowledge required to enable such successor to perform the duties in a manner
similar to the manner in which the Employee performed such duties. The Company shall be entitled to cancel and revoke the provisions
of this subsection.

 

		8.7.	In the event that the employment of the Employee is terminated, the Employee shall
immediately return all documents, information, reports, possessions or other assets belonging to the Employer.

 

     

     

    

 

		9.	MISCELLANEOUS

 

		9.1.	This Agreement shall be governed by and construed and enforced in accordance with the laws of the
State of Israel, without giving effect to the rules respecting conflict of law.

 

		9.2.	The failure of either party to insist upon the strict performance of any of the terms, conditions
and provisions of this Agreement shall not be construed as a waiver or relinquishment of future compliance therewith or with any
other term, condition or provision hereof, and said terms, conditions and provisions shall remain in full force and effect. No
waiver of any term or condition of this Agreement on the part of either party shall be effective for any purpose whatsoever unless
such waiver is in writing and signed by such party.

 

		9.3.	The headings of paragraphs are inserted for convenience and shall not affect any interpretation
of this Agreement.

 

		9.4.	The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability
of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

		9.5.	This Agreement together with the Proprietary Information Agreement constitutes the entire agreement
between the parties hereto and supersedes all prior agreements, understandings and arrangements, oral or written, between the parties
hereto with respect to the subject matter hereof. No agreement or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement and the
Proprietary Information Agreement.

 

		9.6.	This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors
and assigns, and the Company shall require such successor or assign to expressly assume and agree to perform this Agreement in
the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had
taken place. The term “successors and assigns” as used herein shall mean a corporation or other entity acquiring all
or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.

 

		9.7.	Neither this Agreement nor any right or interest hereunder shall be assignable or transferable
by the Employee, his beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by the Employee’s legal personal representative.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the day and year first above written.

 

	Erez Dagan	 	Mobileye Vision Technologies Ltd.
	Date: 1/10/2016	 	Date: 1/10/2016
	Name: Erez Dagan	 	
        Names:
           Ofer Maharshak 

        Pinhas Segal

	Title: SVP Advanced Technologies and Strategy	 	
        Titles:     Chief Financial Officer

        VP Finance & HR

	Signature: /s/ Erez Dagan	 	
        Signatures: /s/ Ofer Maharshak

          /s/ Pinhas Segal

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