Document:

Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the
“Agreement”), dated as of [__], 2021, is entered into by and between NeuroSense Therapeutics Ltd., an Israeli company
whose address is Medinat ha-Yehudim Street 85, Herzliya 4676670 Israel (the “Company”), and the undersigned
Director or Officer of the Company whose name appears on the signature page attached hereto (the “Indemnitee”).

 

	WHEREAS,	Indemnitee is an Office Holder, or Nosse Misra (“Office Holder”) of the Company, as defined in the Companies
Law, 5759–1999, as amended (the “Companies Law”);

 

	WHEREAS,	the Amended and Restated Articles of Association of the Company (the “Articles”) authorize the Company to indemnify
and advance expenses to its Office Holders and provide for insurance and exculpation to its Office Holders, in each case, to the fullest
extent permitted by applicable law, and this Agreement is provided to Indemnitee in accordance with applicable law, the Articles and
all requisite corporate approvals;

 

	WHEREAS,	the Company has determined that (i) the increased difficulty in attracting and retaining competent persons is detrimental to the
best interests of the Company’s shareholders and that the Company should act to assure such persons that there will be increased
certainty of such protection in the future, and (ii) it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law, so that they
will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

 

	WHEREAS,	the Company acknowledges that Indemnitee is relying on the obligations of the Company set forth in this Agreement in agreeing to serve
the Company, which obligations are therefore irrevocable; and

 

	WHEREAS,	in recognition of Indemnitee’s need for substantial protection against loss arising from the Indemnitee’s liability, including
costs and expenses incurred by the Indemnitee due to his or her position as an Office Holder, in order to assure Indemnitee’s continued
service to the Company in an effective manner and, in part, in order to provide Indemnitee with specific contractual assurance that the
indemnification, insurance and exculpation afforded by the Articles will be available to Indemnitee, the Company wishes to undertake
in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent permitted by applicable
law and as set forth in this Agreement and provide for insurance and exculpation of Indemnitee as set forth in this Agreement.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1. INDEMNIFICATION AND INSURANCE.

 

1.1. The Company hereby
undertakes to indemnify Indemnitee to the fullest extent permitted by applicable law and the Articles, as each may be amended from time
to time, for any liability and expense specified in Sections 1.1.1 through 1.1.5 below, imposed on Indemnitee due to or in connection
with an act performed by such Indemnitee, either prior to or after the date hereof, in Indemnitee’s capacity as an Office Holder,
including, without limitation, as a director, officer, employee, agent, observer or fiduciary of the Company, any subsidiary thereof or
any other corporation, collaboration, partnership, joint venture, trust or other enterprise, in which Indemnitee serves at any time at
the request of the Company (the “Corporate Capacity”). The term “act performed in Indemnitee’s capacity
as an Office Holder” shall include, without limitation, any act, omission, and failure to act and any other circumstances relating
to or arising from Indemnitee’s service in a Corporate Capacity. Notwithstanding the foregoing, in the event that the Office Holder
is the beneficiary of an indemnification undertaking provided by a subsidiary of the Company or any other entity, with respect to his
or her Corporate Capacity with such subsidiary or entity, then the indemnification obligations of the Company hereunder with respect to
such Corporate Capacity shall only apply to the extent that the indemnification by such subsidiary or other entity does not actually fully
cover the indemnifiable liabilities and expenses relating thereto. The following shall be hereinafter referred to as
“Indemnifiable Events”:

 

1.1.1. a monetary liability
incurred or imposed on Indemnitee in favor of another person by any court judgment, including a judgment given as a result of a settlement
or an arbitrator’s award which has been confirmed by a court in respect of an act performed by the Indemnitee. For purposes of Section 1
of this Agreement, the term “person” shall include, without limitation, a natural person, firm, partnership, joint
venture, trust, company, corporation, limited liability entity, unincorporated organization, estate, government, municipality, or any
political, governmental, regulatory or similar agency or body;

 

    

     

    

 

1.1.2. reasonable Expenses
(as defined below) incurred by Indemnitee as a result of an investigation or proceeding instituted against him or her by an authority
authorized to conduct such investigation or proceeding, provided that (i) no indictment (as defined in the Companies Law) was filed
against such Indemnitee as a result of such investigation or proceeding; and (ii) no financial liability in lieu of a criminal proceeding
(as defined in the Companies Law) was imposed upon him or her as a result of such investigation or proceeding or if such financial liability
was imposed, it was imposed with respect to an offence that does not require proof of criminal intent (mens rea), or in connection
with a financial sanction;

 

1.1.3. reasonable Expenses
incurred by Indemnitee or that were imposed on Indemnitee by a court in a proceeding filed against the Indemnitee by the Company or in
its name or by any other person or in a criminal charge in respect of which the Indemnitee was acquitted or in a criminal charge in respect
of which the Indemnitee was convicted for an offence that does not require proof of criminal intent (mens rea);

 

1.1.4. a monetary liability
imposed upon Indemnitee and reasonable Expenses expended by Indemnitee as a result of an administrative proceeding instituted against
Indemnitee. Without derogating from the generality of the foregoing, such liability or Expense will include a payment which Indemnitee
is obligated to make to an injured party as set forth in Section 52(54)(a)(1)(a) of the Israeli Securities Law, 1968 – 5728
(the “Securities Law”) and Expenses that Indemnitee incurred in connection with a proceeding under Chapters H’3,
H’4 or I’1 of the Securities Law; and

 

1.1.5. any other obligation,
event, occurrence, matter or circumstance under any law with respect to which the Company may, or will be able to, indemnify the Indemnitee
(including, without limitation in accordance with Section 50P of the Israeli Economic Competition Law, 5758-1988 (the “RTP Law”),
if and to the extent applicable)

 

For the purpose of this Agreement, “Expenses”
shall include, without limitation, attorneys’ fees and all other costs, expenses and obligations paid or incurred by Indemnitee
in connection with investigating, defending, prosecuting, being a witness in or participating in (including on appeal), or preparing to
defend or prosecute, be a witness in or participate in any claim, action, suit, proceeding, alternative dispute resolution mechanism,
hearing, inquiry or investigation relating to any matter for which indemnification hereunder may be provided, and costs and expenses paid
or incurred by Indemnitee in successfully enforcing this Agreement. Expenses shall be considered paid or incurred by Indemnitee at such
time as Indemnitee is required to pay or incur such cost or expenses, including upon receipt of an invoice or payment demand. The Company
shall pay the Expenses in accordance with the provisions of Section 1.3.

 

1.2. Notwithstanding anything
herein to the contrary, the Company’s undertaking to indemnify the Indemnitee in advance under Section 1.1.1 shall only be
with respect to events described in Exhibit A hereto. The Board of Directors of the Company (the “Board”)
has determined that the categories of events listed in Exhibit A are likely to occur in light of the operations of the
Company. The maximum amount of indemnification payable by the Company under Section 1.1.1 of this Agreement with respect to all persons
with respect to whom the Company undertook to indemnify under agreements similar to this Agreement (the “Indemnifiable Persons”),
for all events described in Exhibit A shall be as set forth in Exhibit A hereto (the “Limit
Amount”). In the event the indemnification amount the Company is required to pay to its Office Holders exceeds the Limit Amount
(as existing at that time), the Limit Amount or its remaining balance will be allocated pro rata between the Officer Holders entitled
to indemnification, in the manner that the amount of indemnification that each of the Officer Holders will actually receive will be calculated
in accordance with the ratio between the amount each individual Officer Holder may be indemnified for, and the aggregate amount that all
Officer Holders involved in the event may be indemnified for at the time of the indemnification. The Limit Amount payable by the Company
as described in Exhibit A is deemed by the Company to be reasonable in light of the circumstances. The indemnification
provided under Section 1.1.1 herein shall not be subject to the limitations imposed by this Section 1.2 and Exhibit
A if and to the extent such limits are no longer required by the Companies Law.

 

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1.3. If so requested by
Indemnitee, and subject to the Company’s repayment and reimbursement rights set forth in Sections 3 and 5 below, the Company shall
pay amounts to cover Indemnitee’s Expenses with respect to which Indemnitee is entitled to be indemnified under Section 1.1 above,
as and when incurred. The payments of such amounts shall be made by the Company directly to the Indemnitee’s legal and other advisors,
as soon as practicable, but in any event no later than fifteen (15) days after written demand by such Indemnitee therefor to the Company,
and any such payment shall be deemed to constitute indemnification hereunder. All amounts paid as indemnification hereunder shall be grossed
up to cover any tax payment that Indemnitee may be required to make if the indemnification payments are taxable, subject to the Limit
Amount if required by applicable law. As part of the aforementioned undertaking, the Company will make available to Indemnitee any security
or guarantee that Indemnitee may be required to post in accordance with an interim decision given by a court, governmental or administrative
body, or an arbitrator, including for the purpose of substituting liens imposed on Indemnitee’s assets.

 

1.4. The Company’s
obligation to indemnify Indemnitee and advance Expenses in accordance with this Agreement shall be for such period as Indemnitee shall
be subject to any actual, possible or threatened claim, action, suit, demand or proceeding or any inquiry or investigation, whether civil,
criminal or investigative, arising out of the Indemnitee’s service in the Corporate Capacity as described in Section 1.1 above,
whether or not Indemnitee is still serving in such position (the “Indemnification Period”).

 

1.5. The Company undertakes
that, subject to the mandatory limitations under applicable law and the Articles, as in effect from time to time, as long as it may be
obligated to provide indemnification and advance Expenses under this Agreement, the Company will purchase and maintain in effect directors’
and officers’ liability insurance, which will include coverage for the benefit of the Indemnitee, providing coverage in amounts
as reasonably determined by the Board; provided that, the Company shall have no obligation to obtain or maintain directors and officers
insurance policy if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance
are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is so limited by exclusions that it
provides an insufficient benefit. The Company hereby undertakes to notify the Indemnitee thirty (30) days prior to the expiration or termination
of such directors’ and officers’ liability insurance.

 

1.6. The Company undertakes
to give prompt written notice of the commencement of any claim hereunder to its insurers in accordance with the procedures set forth in
each of the relevant policies. The Company shall thereafter diligently take all actions reasonably necessary under the circumstances to
cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such action, suit, proceeding, inquiry or investigation
in accordance with the terms of such policies. The above shall not derogate from Company’s authority to freely negotiate or reach
any compromise with the insurer which is reasonable at the Company’s sole discretion provided that the Company shall act in good
faith and in a diligent manner.

 

1.7. In making a determination
with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee has requested it, and the Company shall have the burden of
proof to overcome that presumption in connection with the making of any determination contrary to that presumption.

 

2. SPECIFIC LIMITATIONS
ON INDEMNIFICATION.

 

Notwithstanding anything to the contrary in this
Agreement, the Company shall not indemnify or advance Expenses to Indemnitee with respect to (i) any act, event or circumstance with
respect to which it is prohibited to do so under applicable law, or (ii) a counter claim made by the Company or in its name in connection
with a claim against the Company filed by the Indemnitee.

 

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3. REPAYMENT OF EXPENSES.

 

3.1. In the event that the
Company provides or is required to provide indemnification with respect to Expenses hereunder and at any time thereafter the Company determines,
based on advice from its legal counsel, that the Indemnitee was not entitled to such payments, the amounts so indemnified by the Company
will be promptly repaid by Indemnitee, unless the Indemnitee disputes the Company’s determination, in which case the Indemnitee’s
obligation to repay to the Company shall be postponed until such dispute is resolved by a court of competent jurisdiction in a final and non-appealable order.

 

3.2. Indemnitee’s
obligation to repay the Company for any Expenses or other sums paid hereunder shall be deemed as a loan given to Indemnitee by the Company
subject to the minimum interest rate prescribed by Section 3(9) of the Income Tax Ordinance (New Version), 1961, or any other legislation
replacing it, which is not considered a taxable benefit.

 

4. SUBROGATION.

 

In the event of payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents
required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable
the Company effectively to bring suit to enforce such rights.

 

5. REIMBURSEMENT.

 

The Company shall not be liable under this Agreement
to make any payment in connection with any Indemnifiable Event to the extent Indemnitee has otherwise actually received payment under
any insurance policy or otherwise (without any obligation of Indemnitee to repay any such amount) of the amounts otherwise indemnifiable
hereunder. Any amounts paid to Indemnitee under such insurance policy or otherwise after the Company has indemnified Indemnitee for such
liability or Expense shall be repaid to the Company as soon as practical upon receipt by Indemnitee, in accordance with the terms set
forth in Section 3.2.

 

The Company hereby acknowledges that the Indemnitee
has now or may have in the future certain rights to indemnification, advancement of expenses and/or insurance provided by third parties
(the “Third Party Indemnitor”), and the Company hereby agrees (i) that the Company is the indemnitor of first
resort (i.e., its obligations to the Indemnitee are primary and any obligation of any Third Party Indemnitor to advance expenses or to
provide indemnification for the same expenses or liabilities incurred by the Indemnitee are secondary), (ii) it shall be required to advance
the full amount of expenses incurred by the Indemnitee and shall be liable for the full amount of all expenses, judgments, penalties,
fines and amounts paid in settlement to the fullest extent legally permitted and as required by the terms of this Agreement and/or the
Articles (or any other agreement between the Company and the Indemnitee), without regard to any rights the Indemnitee may have against
the Third Party Indemnitors, and (iii) that it irrevocably waives, relinquishes and releases any Third Party Indemnitor from any
and all claims against any Third Party Indemnitor for contribution, subrogation or any other recovery of any kind of respect of the subject
matters of this Agreement. Without altering or expanding any of the Company’s indemnification obligations hereunder, the Company
further agrees that no advancement or payment by any Third Party Indemnitor on the Indemnitee’s behalf with respect to any claim
for which Indemnitee has sought indemnification from the Company shall affect the foregoing and any Third Party Indemnitor shall have
a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Indemnitee
against the Company. The Company and the Indemnitee agree that the Third Party Indemnitors are express third party beneficiaries of the
terms of this Section 5.

 

6. EFFECTIVENESS.

 

The Company represents and warrants that this
Agreement is valid, binding and enforceable in accordance with its terms and was duly adopted and approved by the Board and shall be in
full force and effect immediately upon its execution and shall continue to be in full force for the duration of the Indemnification Period.

 

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7. NOTIFICATION AND DEFENSE OF
CLAIM.

 

Indemnitee shall notify the Company of the commencement
of any action, suit or proceeding, and of the receipt of any notice or threat that any such legal proceeding has been or shall or may
be initiated against Indemnitee (including any proceedings by or against the Company and any subsidiary thereof), promptly upon Indemnitee
first becoming so aware; but the omission to so notify the Company will not relieve the Company from any liability which it may have to
Indemnitee under this Agreement unless and to the extent that such failure to provide notice materially and adversely impacts the Company’s
ability to defend such action. Notice to the Company shall be directed to the Chief Executive Officer or Chief Financial Officer of the
Company at the address shown in the preamble to this Agreement (or such other address as the Company shall designate in writing to Indemnitee).
With respect to any such action, suit or proceeding as to which Indemnitee notifies the Company of the commencement thereof and without
derogating from Sections 1.1 and 2:

 

7.1. The Company will be
entitled to participate therein at its own expense.

 

7.2. Except as otherwise
provided below, the Company, alone or jointly with any other indemnifying party similarly notified, will be entitled to assume the defense
thereof, with counsel selected by the Company. Indemnitee shall have the right to employ his or her own counsel in such action, suit or
proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof
shall be at the expense of Indemnitee, unless: (i) the employment of counsel by Indemnitee has been authorized in writing by the
Company; (ii) the Company shall have, in good faith, reasonably concluded that there may be a conflict of interest under the law
and rules of attorney professional conduct applicable to such claim between the Company and Indemnitee in the conduct of the defense of
such action; or (iii) the Company has not in fact employed counsel to assume the defense of such action within reasonable time, in
which cases the reasonable fees and expenses of Indemnitee’s counsel shall be at the expense of the Company. The Company shall not
be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which the Company
shall have reached the conclusion specified in (ii) above.

 

7.3. The Company shall not
be liable to indemnify Indemnitee under this Agreement for any amounts or expenses paid in connection with a settlement of any action,
claim or otherwise, effected without the Company’s prior written consent.

 

7.4. The Company shall have
the right to conduct the defense as it sees fit in its sole discretion (provided that the Company shall conduct the defense in good faith
and in a diligent manner and that the Company and its counsel shall keep the Indemnitee reasonably notified on a regular basis of all
events in the action), including the right to settle or compromise any claim or to consent to the entry of any judgment against Indemnitee
without the consent of the Indemnitee, provided that, the amount of such settlement, compromise or judgment does not exceed the Limit
Amount (if applicable) and is fully indemnifiable pursuant to this Agreement (subject to Section 1.2 of this Agreement) and/or applicable
law, and any such settlement, compromise or judgment does not impose any penalty or limitation on Indemnitee without the Indemnitee’s
prior written consent. The Indemnitee’s consent shall not be required if the settlement includes a complete release of Indemnitee,
does not contain any admission of wrong-doing by Indemnitee, and includes monetary sanctions only as provided above. In the case of criminal
proceedings, the Company and/or its legal counsel will not have the right to plead guilty or agree to a plea-bargain in the Indemnitee’s
name without the Indemnitee’s prior written consent. Neither the Company nor Indemnitee will unreasonably withhold or delay its
consent to any proposed settlement.

 

7.5. Indemnitee shall fully
cooperate with the Company and shall give the Company all information and access to documents, files and to his or her advisors and representatives
as shall be within Indemnitee’s power, in every reasonable way as may be required by the Company with respect to any claim that
is the subject matter of this Agreement and in the defense of other claims asserted against the Company (other than claims asserted by
Indemnitee), provided that the Company shall cover all expenses, costs and fees incidental thereto such that the Indemnitee will not be
required to pay or bear such expenses, costs and fees.

 

7.6. Indemnitee shall not
be required to admit and/or assume any responsibility for any matter for which the Indemnitee is entitled to indemnification pursuant
with this Agreement without the Company’s consent thereto, such consent not to be unreasonably withheld.

 

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8. EXCULPATION.

 

Subject to the provisions of the Companies Law,
the Company hereby exempts, exculpates, and releases, in advance, the Office Holder from liability to the Company for any damage that
arises from the breach of the Office Holder’s duty of care to the Company (within the meaning of such terms under Sections 252 and
253 of the Companies Law), other than breach of the duty of care towards the Company in a distribution (as such term is defined in the
Companies Law).

 

9. NON-EXCLUSIVITY.

 

The rights of the Indemnitee hereunder shall not
be deemed exclusive of any other rights Indemnitee may have under the Articles, applicable law or otherwise, and to the extent that during
the Indemnification Period the indemnification rights of the then serving Indemnitees are more favorable to such Indemnitees than the
indemnification rights provided under this Agreement, Indemnitee shall be entitled to the full benefits of such more favorable indemnification
rights to the extent permitted by law.

 

10. PARTIAL INDEMNIFICATION.

 

If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines or penalties actually or reasonably
incurred by Indemnitee in connection with any proceedings, but not, however, for the total amount thereof, the Company shall nevertheless
indemnify Indemnitee for the portion of such Expenses, judgments, fines or penalties to which Indemnitee is entitled under any provision
of this Agreement. Subject to the provisions of Section 5 above, any amount received by Indemnitee (under any insurance policy or
otherwise) shall not reduce the Limit Amount hereunder and shall not derogate from the Company’s obligation to indemnify the Indemnitee
in accordance with the provisions of this Agreement up to the Limit Amount, as set forth in Section 1.2.

 

11. BINDING EFFECT.

 

This Agreement shall be binding upon and inure
to the benefit of and be enforceable by the parties hereto and their respective successors and permitted assigns and their respective
heirs, personal representatives, executors and administrators. In the event of a merger or consolidation of the Company or a transfer
or disposition of all or substantially all of the business or assets of the Company, the Indemnitee shall be entitled to the same indemnification
and insurance provisions as the most favorable indemnification and insurance provisions afforded to the then-serving Office Holders of
the Company. In the event that in connection with such transaction the Company purchases a directors and officers’ “tail”
or “run-off” policy for the benefit of its then serving Office Holders, then such policy shall cover Indemnitee and such
coverage shall be deemed to be in satisfaction of the insurance requirements under this Agreement. This Agreement shall continue in effect
during the Indemnification Period regardless of whether Indemnitee continues to serve in a Corporate Capacity.

 

Any amendment to the Companies Law, the Israeli
Securities Law, the RTP Law or other applicable law adversely affecting the right of the Indemnitee to be indemnified, insured or released
pursuant hereto shall be prospective in effect, and shall not affect the Company’s obligation or ability to indemnify or insure
the Indemnitee for any act or omission occurring prior to such amendment, unless otherwise provided by applicable law.

 

12. SEVERABILITY.

 

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. If any provision of this Agreement, or the application thereof or any circumstance, is invalid or unenforceable, (i) a suitable
and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose
of such invalid or unenforceable provision and (ii) the remainder of this Agreement and the application of such provision or circumstances
shall not be affected by such invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity or enforceability
of such provision, or the application thereof, in any other jurisdiction. 

 

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13. NOTICE.

 

All notices and other communications pursuant
to this Agreement shall be in writing and shall be deemed provided if delivered personally, telecopied, sent by electronic facsimile,
email, reputable overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the parties
at the addresses shown in the preamble to this Agreement, or to such other address as the party to whom notice is to be given may have
furnished to the other party hereto in writing in accordance herewith. Any such notice or communication shall be deemed to have been delivered
and received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of telecopier or an electronic
facsimile or email, one business day after the date of transmission if confirmation of receipt is received, (iii) in the case of
a reputable overnight courier, three business days after deposit with such reputable overnight courier service, and (iv) in the case
of mailing, on the seventh business day following that on which the mail containing such communication is posted.

 

14. GOVERNING LAW; JURISDICTION.

 

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 conflicts of law provisions of those laws.
The Company and Indemnitee each hereby irrevocably consent to the exclusive jurisdiction and venue of the courts of Tel Aviv, Israel for
all purposes in connection with any action or proceeding which arises out of or relates to this Agreement.

 

15. ENTIRE AGREEMENT AND TERMINATION.

 

This Agreement represents the entire agreement
between the parties and supersedes any other agreements, contracts or understandings between the parties, whether written or oral, with
respect to the subject matter of this Agreement. For the avoidance of doubt, it is hereby clarified that nothing contained herein derogates
from the Company’s right in its sole discretion, subject to applicable law and the Articles, to indemnify Indemnitee post factum
for any amounts the Indemnitee may be obligated to pay.

 

16. NO MODIFICATION AND NO WAIVER.

 

No supplement, modification or amendment, termination
or cancellation of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions
of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver. Any waiver shall be in writing. The Company hereby undertakes not to amend its Articles in a manner
that will adversely affect the provisions of this Agreement.

 

17. ASSIGNMENTS; NO THIRD PARTY
RIGHTS.

 

Neither party hereto may assign any of its rights
or obligations hereunder except with the express prior written consent of the other party. Nothing herein shall be deemed to create or
imply an obligation for the benefit of a third party, except as set forth in Section 5. Without limitation of the foregoing, nothing
herein shall be deemed to create any right of any insurer that provides directors’ and officers’ liability insurance, to claim,
on behalf of Indemnitee, any rights hereunder.

 

18. INTERPRETATION; DEFINITIONS.

 

The obligations of the Company as provided hereunder
shall be interpreted broadly and in a manner that shall facilitate its execution, to the extent permitted by law, and for the purposes
for which it was intended. Unless the context shall otherwise require: words in the singular shall also include the plural, and vice versa;
any pronoun shall include the corresponding masculine, feminine and neuter forms; the words “include”, “includes”
and “including” shall be deemed to be followed by the phrase “without limitation”; the words “herein”,
“hereof” and “hereunder” and words of similar import refer to this Agreement in its entirety and not to any part
hereof; all references herein to Sections or clauses shall be deemed references to Sections or clauses of this Agreement; any references
to any agreement or other instrument or law, statute or regulation are to it as amended, supplemented or restated, from time to time (and,
in the case of any law, to any successor provisions or re-enactment or modification thereof being in force at the time); any
reference to “law” shall include any supranational, national, federal, state, local, or foreign statute or law and all rules
and regulations promulgated thereunder; any reference to a “day” or a number of “days” (without any explicit reference
otherwise, such as to business days) shall be interpreted as a reference to a calendar day or number of calendar days; reference to month or year
means according to the Gregorian calendar; reference to a “company”, “corporate body” or “entity”
shall include a, partnership, firm, company, corporation, limited liability company, association, joint venture, trust, unincorporated
organization, estate, or a government municipality or any political, governmental, regulatory or similar agency or body, and reference
to a “person” shall mean any of the foregoing or a natural person.

 

19. COUNTERPARTS.

 

This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all
of which together shall constitute one and the same instrument; it being understood that parties need not sign the same counterpart. The
exchange of an executed Agreement (in counterparts or otherwise) by facsimile or by electronic delivery in pdf format shall be sufficient
to bind the parties to the terms and conditions of this Agreement, as an original.

 

[SIGNATURE PAGE TO FOLLOW]

 

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IN WITNESS WHEREOF, the parties, each
acting under due and proper authority, have executed this Agreement as of the date first mentioned above, in one or more counterparts.

 

	NeuroSense Therapeutics Ltd.	 
	 	 
	By: 	                	 
	Name: 	 
	Title: 	 
	 	 
	Indemnitee:	 
	 	 
	 	 
	Name: 	 
	Title: 	 

 

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EXHIBIT A*

 

	 	CATEGORY OR INDEMNIFICATION EVENT	 	LIMIT AMOUNT PER EACH SPECIFIC EVENT WITHIN THIS CATEGORY OF EVENTS
	 	 	 	 
	1. 	Claims in connection with employment relationships with and/or by employees or consultants of the Company, and in connection with business relations between the Company and its employees, independent contractors, customers, suppliers, partners, clients and various service providers.	 	the greater of (i) an amount equal to 25% of our shareholders’ equity on a consolidated basis, based on our most recent financial statements made publicly available before the date on which the indemnity payment is made, and (ii) $25,000,000 (the “Maximum Amount”).
	 	 	 	 
	2. 	Negotiations, execution, delivery and performance of agreements of any kind or nature, anti-competitive acts, restrictive trade practices or monopolies, acts of commercial wrongdoing, approval of corporate actions including the approval of and recommendation or information provided to shareholders with respect to corporate actions, the approval of the acts of the Company’s management, their guidance and their supervision, actions concerning the approval of transactions with Office Holders or shareholders, including controlling persons, intercompany transactions, actions pursuant to or in accordance with the policies and procedures of the Company (whether or not such policies and procedures are published) and claims of failure to exercise business judgment and a reasonable level of proficiency, expertise and care or any other applicable standard with respect to the Company’s business.	 	The Maximum Amount
	 	 	 	 
	3. 	Violation, infringement, misappropriation, dilution and other misuse of copyrights, patents, designs, trade secrets and any other intellectual property rights, acts in connection with the registration, assertion or protection of rights to intellectual property and the defense of claims related to intellectual property, breach of confidentiality obligations, acts in regard of invasion of privacy including with respect to databases or personal information, acts in connection with slander and defamation, and claims in connection with publishing or providing any information, including any filings with any governmental authorities, whether or not required under any applicable laws.	 	The Maximum Amount
	 	 	 	 
	4. 	Violations of securities laws of any jurisdiction, including without limitation, claims under the U.S. Securities Act of 1933, as amended from time to time, or the U.S. Securities Exchange Act of 1934, as amended from time to time, or under the Israeli Securities Law, as amended from time to time, fraudulent disclosure claims, failure to comply with any securities authority or any stock exchange disclosure or other rules and any other claims relating to relationships with investors, debt holders, shareholders, holders of any other equity or debt instrument of the Company and the investment community and any claims related to the Sarbanes-Oxley Act of 2002, as amended from time to time; claims relating to or arising out of financing arrangements, any breach of financial covenants or other obligations towards lenders or debt holders of the Company, class actions, violations of laws requiring the Company to obtain regulatory and governmental licenses, permits and authorizations in any jurisdiction; actions taken in connection with the issuance, purchase, holding or disposition of any type of securities of Company, including, without limitation, the grant of options, warrants or other rights to purchase any of the same or any offering of the Company’s securities to private investors or to the public, and listing of such securities, or the offer by the Company to purchase securities from the public or from private investors or other holders, and any undertakings, representations, warranties and other obligations related to any such offering, listing or offer or to the Company’s status as a public company or as an issuer of securities.	 	The Maximum Amount

 

    9

     

    

 

	5. 	Liabilities arising in connection with development of any products or services developed, distributed, rendered, sold, provided, licensed or marketed by the Company, and any actions or omission in connection with the distribution, provision, sale, marketing, license or use of such products or services, including without limitation in connection with professional liability and product liability claims.	 	The Maximum Amount
	 	 	 	 
	6. 	
    Liabilities arising in connection
    with the conduct of clinical trials, testing, development or manufacturing of any products or services developed, distributed, rendered,
    sold, provided, licensed or marketed by the Company, and any actions in connection with the distribution, provision, sale, marketing,
    license or use of such products or services, including without limitation in connection with professional liability and product liability
    claims

    
	 	The Maximum Amount
	 	 	 	 
	7. 	The offering of securities by the Company to the public, including the offering of securities by a shareholder in connection with a secondary offering.	 	The greater of (i) the gross proceeds raised by the Company and/or any selling shareholder in such public offering, or (ii) the Maximum Amount.
	 	 	 	 
	8. 	The offering of securities by the Company to private investors or the offer by the Company to purchase securities from the public and/or from private investors or other holders pursuant to a prospectus, agreements, notices, reports, tender offers, including actions relating to delivery of opinions in relation to any of the foregoing, and/or other proceedings.	 	The Maximum Amount
	 	 	 	 
	9. 	Events in connection with change in ownership or in the structure of the Company, its reorganization, dissolution, winding up, any other arrangements concerning creditors rights or any decision concerning any of the foregoing, including but not limited to, merger, sale or acquisition of assets, division, spin off, divestiture, change in capital.	 	The Maximum Amount

 

    10

     

    

 

	10. 	Any claim or demand made in connection with any transaction not in the ordinary course of business of the Company, including the sale, lease or purchase of, or the receipt or any grant of any rights with respect to, any assets or business.	 	The Maximum Amount
	 	 	 	 
	11. 	Any claim or demand made by any third party suffering any personal injury and/or bodily injury or damage to business or personal property or any other type of damage through any act or omission attributed to the Company, or its employees, agents or other persons acting or allegedly acting on its behalf, including, without limitation, failure to make proper safety arrangements for the Company or its employees and liabilities arising from any accidental or continuous damage or harm to the Company’s employees, its contractors, its guests and visitors as a result of an accidental or continuous event, or employment conditions, permanent or temporary, in the Company’s offices.	 	The Maximum Amount
	 	 	 	 
	12. 	Any claim or demand made directly or indirectly in connection with complete or partial failure, by the Company or its directors, officers and employees, to pay, report, keep applicable records or otherwise, of any foreign, federal, state, county, local, municipal or city taxes or other compulsory payments of any nature whatsoever, including, without limitation, income, sales, use, transfer, excise, value added, registration, severance, stamp, occupation, customs, duties, real property, personal property, capital stock, social security, unemployment, disability, payroll or employee withholding or other withholding, including any interest, penalty or addition thereto, whether disputed or not.	 	The Maximum Amount
	 	 	 	 
	13. 	Any administrative, regulatory or judicial actions, orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation by any governmental entity or other person alleging the failure to comply with any statute, law, ordinance, rule, regulation, order or decree of any governmental entity applicable to the Company or any of its businesses, assets or operations, or the terms and conditions of any operating certificate or licensing agreement.	 	The Maximum Amount
	 	 	 	 
	14. 	Participation and/or non-participation at the Company’s Board meetings, bona fide expression of opinion and/or voting and/or abstention from voting at the Company’s Board meetings, including, in each case, any committee thereof.	 	The Maximum Amount
	 	 	 	 
	15. 	Review and approval of the Company’s financial statements and any specific items or matters within, including any action, consent or approval related to or arising from the foregoing, including, without limitations, execution of certificates for the benefit of third parties related to the financial statements.	 	The Maximum Amount

 

    11

     

    

 

	16. 	Violation of laws, rules or regulations requiring the Company to obtain regulatory and governmental licenses, permits and authorizations (including without limitation relating to export, import, encryption, antitrust or competition authorities) or laws related to any governmental grants in any jurisdiction.	 	The Maximum Amount
	 	 	 	 
	17. 	Resolutions and/or actions relating to investments in the Company and/or its subsidiaries and/or affiliated companies and/or the purchase and sale of assets, including the purchase or sale of companies and/or businesses, and/or investment in corporate or other entities and/or investments in traded securities and/or any other form of investment.	 	The Maximum Amount
	 	 	 	 
	18. 	Liabilities arising out of advertising, including misrepresentations regarding the Company’s products or services and unlawful distribution of emails.	 	The Maximum Amount
	 	 	 	 
	19. 	An announcement or statement, including a position taken or an opinion or representation made in good faith by the Office Holder in the course of his duties or in conjunction with his duties, whether in public or in private, including during a meeting of the Board of Directors of the Company or any of the committees thereof.	 	The Maximum Amount
	 	 	 	 
	20. 	Management of the Company’s bank accounts, including money management, foreign currency deposits, securities, loans and credit facilities, credit cards, bank guarantees, letters of credit, consultation agreements concerning investments including with portfolio managers, hedging transactions, options, futures, and the like.	 	The Maximum Amount
	 	 	 	 
	21. 	Any action or decision in relation to protection of work safety and/or working conditions, including with respect to provisions of the law, procedures or standards as applicable in or outside of Israel with relating to protection of work safety, pertaining, inter alia, to contamination, health protection, production processes, distribution, use, treatment, storage and transportation of certain materials, including in connection with corporal damage, property and environmental damages.	 	The Maximum Amount
	 	 	 	 
	22. 	Any liability arising under any administrative, regulatory, judicial or civil actions orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance or violation of Section 50P of the RTP Law.	 	The Maximum Amount
	 	 	 	 
	23. 	All actions, consents and approvals relating to a distribution of dividends, in cash or otherwise, or to any other “distribution” as such term is defined under the Companies Law and/or repurchase of shares or returns of capital of the Company.	 	The Maximum Amount

 

    12

     

    

 

	24. 	Any administrative, regulatory, judicial, civil or criminal, actions orders, decrees, suits, demands, demand letters, directives, claims, liens, investigations, proceedings or notices of noncompliance, violation or breaches alleging potential responsibility, liability, loss or damage (including potential responsibility or liability for costs of enforcement, investigation, cleanup, governmental response, removal or remediation, property damage or penalties, or for contribution, indemnification, cost recovery, compensation or injunctive relief), whether alleged or claimed by customers, consumers, regulators, shareholders or others, arising out of, based on or related to: (a) cyber security, cyber-attacks, data loss or breaches, unauthorized access to databases and use or disclosure of information contained therein, not preventing or detecting the breach or failing to otherwise disclose or respond to the breach; (b) circumstances forming the basis of any violation of any law, permit, license, registration or other authorization required under applicable law governing data security, data protection, network security, information systems, privacy or any cyber environment (including, users, networks, devices, software, processes, information systems, databases, information in storage or transit, applications, services, and systems that can be connected directly or indirectly to networks); (c) failure to implement a reporting system or control, or failure to monitor or oversee the operation of such a system; (d) data destruction, extortion, theft, hacking, and denial of service attacks; losses or liabilities to others caused by errors and omissions, failure to safeguard data or defamation; or (e) security-audit, post-incident public relations and investigative expenses, criminal reward funds, data breach/privacy crisis management (including, management of an incident, investigation, remediation, data subject notification, call management, credit checking for data subjects, legal costs, court attendance and regulatory fines), extortion liability (including, losses due to a threat of extortion, professional fees related to dealing with the extortion), or network security liability (including, losses as a result of denial of access, costs related to data on third-parties and costs related to the theft of data on third-party systems).	 	The Maximum Amount
	 	 	 	 
	25. 	Resolutions and/or actions relating to the operations and management of the Company’s and/or of any enterprises and/or affiliated companies.	 	The Maximum Amount
	 	 	 	 
	26. 	Resolutions and/or actions relating to the approval of transaction with directors and officers of the Company  and with holders of controlling interests in the Company. 	 	The Maximum Amount
	 	 	 	 
	27. 	Aggregate Limit Amount for all events together.	 	The Maximum Amount

 

* Any reference in this Exhibit A to the Company shall
include the Company and any entity in which the Indemnitee serves in a Corporate Capacity.

 

 

13Exhibit 10.2

 

 

 

 

 

 

 

 

 

 

 

 

 

NEUROSENSE THERAPEUTICS LTD.

 

2018 SHARE OPTION PLAN

 

AMENDED BY THE BOARD OF DIRECTORS 

 

ON OCTOBER 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

     

    

 

NEUROSENSE THERAPEUTICS LTD.

 

2018 SHARE OPTION PLAN

 

1. Purpose.
The purpose of this 2018 Share Option Plan (the “Plan”) is to advance the interests of the Company and its shareholders
by attracting and retaining the best available personnel for positions of substantial responsibility, providing additional incentive to
employees, officers, directors, advisors and consultants and promoting a close identity of interests between those individuals and the
Company and/or an Affiliate (as defined below). The provisions specified hereunder apply only to persons who are subject to taxation by
the State of Israel with respect to their Options (as defined below).

 

2. Definitions

 

2.1Defined
Terms. Initially capitalized terms, as used in this Plan, shall have the
meaning ascribed thereto as set forth below:

 

	“102 Participant”	means, an Israeli tax resident who is an employee or a director of the Company or an Israeli Affiliate, on behalf of whom an Option is granted under Section 102.
	 	 
	 “Administrator”	means the Board, or a committee to which the Board shall have delegated power to act on its behalf with respect to the Plan. The Administrator, if it is a committee, shall consist of such number of members (but not less than two (2)) as may be determined by the Board.
	 	 
	
    “Affiliate(s)”
	means a present or future company that either (i) Controls the Company, (ii) is Controlled by the Company; or (iii) is Controlled by the same person or entity that Controls the Company.
	 	 
	“Applicable Law”	means all laws applicable to the grant of Options pursuant to this Plan, including but not limited to the requirements under tax laws, social security laws, security laws, companies laws, any stock exchange or quotation system on which the Shares are listed or quoted, the applicable law in the country or jurisdiction of any such system, and the applicable law of any other country or jurisdiction where Options are granted under the Plan.
	 	 
	“Articles”	means the Articles of Association of the Company, as may be amended from time to time.
	 	 
	“Board”	means the board of directors of the Company.
	 	 
	
    “Capital Gains Track Through a Trustee”

     

    “Cause”
	
    means the Company’s choice of the capital
gains track of taxation for share allocation to employees under Section 102 through a trustee.

     

    means, when used in connection with the termination
    of a Participant’s employment with, or services to the Company or an Affiliate, and forming the basis of such termination: (a) the
    definition ascribed to Cause in the individual employment agreement or services agreement between the Company and/or its Affiliate and
    the Participant; or (b) if no such definition exists, then any of the following, including but not limited to: dishonesty toward the Company
    or Affiliate, insubordination, substantial malfeasance or nonfeasance of duty, unauthorized disclosure of confidential information and
    conduct substantially prejudicial to the business of the Company or Affiliate; or any substantial breach by the Participant of: (A) his
    or her employment or service agreement with the Company or an Affiliate; or (B) any other obligations towards the Company or an Affiliate.

 

    2

     

    

 

	“Commencement Date”	means the date of commencement of the vesting schedule with respect to a Grant of Options which, unless otherwise determined by the Administrator, shall be the date on which such Options shall be granted. 
	 	 
	“Company”	means Neurosense Therapeutics Ltd., a company incorporated under the laws of the State of Israel.
	 	 
	“Consultant”	means an Israeli resident, who serves as a consultant of the Company or an Israeli resident Affiliate and is not entitled to receive Options under Section 102, on behalf of whom an Option is granted under Section 3(i).
	 	 
	“Control” or “Controlled”	shall have the meaning ascribed thereto in Section 102.
	 	 
	“Date of Grant”	shall have the meaning set forth in Section 6.2 of this Plan.
	 	 
	“Director”	means a member of the Board.
	 	 
	“Disability”	means total and permanent physical or mental impairment or sickness of a Participant, making it impossible for the Participant to continue such Participant’s employment with or service to the Company or Affiliate.
	 	 
	“Earned Income Track”	means the Company’s choice of the work income course of taxation for share allocation to employees under Section 102 through a trustee.
	 	 
	“Election”	shall have the meaning set forth in Section 11.1 of this Plan.
	 	 
	“Employee”	shall have the meaning set forth in Section 102.
	 	 
	“Exercise Notice”	shall have the meaning set forth in Section 7.4(a) of this Plan.
	 	 
	“Exercise Price” 	Memeans the price determined by the Administrator in accordance with Section 7.1 below which is to be paid to the Company in order to exercise a Granted Option and convert such Option into an Underlying Share.
	 	 
	“Fair Market Value”	means, as of any date, the value of a Share determined as follows: (i) if the Company’s shares are listed on any established stock exchange or a national market system, including without limitation the Nasdaq Global Select Market, Nasdaq Global Market or the Nasdaq Capital Market of the Nasdaq Stock Market, the Fair Market Value shall be the closing sales price of such shares (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; without derogating from the above and solely for the purpose of determining the tax liability pursuant to Section 102 (and in particular Section 102(b)(3)), if on the date of grant the Company’s shares are listed on any established stock exchange or a national market system or if the Company’s shares will be registered for trading within ninety days following the date of grant under the Section 102 Capital Gains Track Through a Trustee, the Fair Market Value of a Share on its date of grant shall be determined in accordance with the average value of the Company’s shares during the thirty trading days immediately preceding the date of grantor during the thirty (30) trading days immediately following the date of registration for trading (if the Company’s shares will be listed within ninety days following the date of grant), as the case may be; or (ii) if the Company’s shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for the Company’s shares on the last market trading day prior to the day of determination; or (iii) in the absence of an established market for the Company’s shares, the Fair Market Value shall be determined in good faith by the Administrator (including in accordance with an independent third party valuation of the Company which may be obtained by the Administrator).

 

    3

     

    

 

	“Grant Letter”	means a written agreement between the Company to a Participant evidencing the terms and conditions of an individual grant of Options. The Grant Letter shall specify among others: (i) the Tax Provision under which the Option is granted; (ii) the Tax Track that the Company has elected according to Section 11 of the Plan (if applicable); (iii) the Exercise Price; (iv) the number of Options granted to the Participant; (v) the Date of Grant; and (vi) the vesting schedule.
	 	 
	“Grant of Options” or “Granted Options”	means the grant of Options by the Company to a Participant pursuant to a Grant Letter.
	 	 
	“Holding Period”	 means with respect to Options granted under Section 102, the minimum period in which the Options granted to a Participant or, upon exercise thereof, the Underlying Shares, are to be held by the Trustee on behalf of the Participant, in accordance with Section 102, and pursuant to the Tax Track which the Company elected. 
	 	 
	“IPO”	means the initial public offering of shares of the Company and the listing of such shares for trading on any recognized stock exchange or over-the-counter or computerized securities trading system.
	 	 
	“ITA”	means the Israeli Tax Authority.
	 	 
	“Merger Transaction” or “Merger”	means any of the following but excluding any Re-organization or Spin-off Transaction: (a) a sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries; or (b) a sale of all or substantially all of the shares of the share capital of the Company whether by a single transaction or a series of related transactions which occur either over a period of 12 months or within the scope of the same acquisition agreement; or (c) a merger, consolidation or like transaction of the Company with or into another corporation in which the Company is not the surviving entity, including a reverse triangular merger but excluding a merger which falls within the definition of Re-organization.
	 	 
	“Option”	means an option to purchase one Share of the Company.
	 	 
	“Non-Qualified Participant”	means a person who is not qualified to receive Options under the provisions of Section 102, on behalf of whom an Option is granted under Section 3(i). 
	 	 
	“Participant”	means 102 Participant, or a Non-Qualified Participant, or a Consultant.
	 	 
	“Plan” or “Option Plan”	means this 2018 Share Option Plan, as may be amended from time to time.
	 	 
	
    “Re-organization”
	means, any re-domestication of the Company, share flip, creation of a holding company for the Company which will hold substantially all of the shares of the Company or any other transaction involving the Company in which the ordinary shares of the Company outstanding immediately prior to such transaction continue to represent, or are converted into or exchanged for shares that represent, immediately following such transaction, at least a majority, by voting power, of the share capital of the surviving, acquiring or resulting corporation and in which there is no material change to the interests held by the Shareholders prior to such transaction and thereafter.
	 	 
	“Retirement”	means the termination of a Participant’s employment as a result of his or her reaching the earlier of (i) the age of retirement as defined by the Applicable Law; or (ii) the age of retirement specified in the Participant’s employment agreement.
	 	 
	“Section 102”	means Section 102 of the Tax Ordinance. 

 

    4

     

    

 

	“Section 102 Rules”	means the Income Tax Rules (Tax Relief for Issuance of Shares to Employees), 2003.
	 	 
	“Section 3(i)” 	means section 3(i) of the Tax Ordinance and the applicable rules thereto or under applicable regulations.
	 	 
	
    “Share”

     

    “Shareholders”
	
    means, ordinary share(s) of the Company, having
    a no par value.

     

    means, the shareholders of the Company.

	 	 
	
    “Spin-off Transaction”

     

     
	means, any transaction in which assets of the Company are transferred or sold to a company or corporate entity in which the Shareholders hold equal stakes, pro-rata to their ownership of the Company. 
	 	 
	“Tax Ordinance”	means the Israeli Income Tax Ordinance [New Version], 1961, as amended, and any regulations, rules, orders or procedures promulgated thereunder.
	 	 
	“Tax Provision”	means, with respect to the Grant of Options, the provisions of one of the three Tax Tracks in Section 102, or the provisions of Section 3(i). 
	 	 
	“Tax Track”	means one of the three tax tracks described under Section 102, specifically: (1) the Capital Gains Track Through a Trustee; (2) Earned Income Track; or (3) the Income Tax Track Without a Trustee.
	 	 
	“Term of the Options”	means, with respect to granted but unexercised Options, the time period set forth in Section 9 below.
	 	 
	“Trust Agreement”	means the agreement/s between the Company and the Trustee regarding the Options granted under this Plan to Section 102 Partipants and the underlying Shares to be held in trust, as in effect from time to time.
	 	 
	“Trustee”	means a trustee appointed by the Company and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Tax Ordinance, to hold in trust, the Granted Options and the Underlying Shares issued upon exercise of such Options, on behalf of Participants. The Trustee may be replaced from time to time subject to the provisions of Section 102. 
	 	 
	“Underlying Shares”	means Shares issued or to be issued upon exercise of the Options granted in accordance with the Plan.

 

2.2 General.
Without derogating from the meanings ascribed to the capitalized terms above, all singular references in this Plan shall include
the plural and vice versa, and reference to one gender shall include the other, unless otherwise required by the context.

 

3. Shares
Available for Options. The total number of Underlying Shares reserved for issuance under the Plan and any modification thereof,
shall be:

 

(a) 300,000 Shares
(prior to giving effect to any share split), plus

 

(b) an annual
increase to be added as of the first day of the Company’s fiscal year, beginning in 2022 and occurring each year thereafter through
2032, equal to 4% of the total number of Shares issued and outstanding on a fully-diluted basis as of the end of the Company’s immediately
preceding fiscal year (or such lesser number of shares, including no shares, determined by the Board in its sole discretion).

 

Such number of Shares shall be subject to adjustment
as required for the implementation of the provisions of the Plan, in accordance with Section 4 below. In the event that Options are expired
or forfeited or otherwise terminated in accordance with the provisions of the Plan, such expired or terminated Options shall become available
for future grants under the Plan.

 

    5

     

    

 

4. Adjustments

 

4.1 Changes
in Capitalization. Subject to any required action by the Shareholders, the number of Underlying Shares covered by each outstanding
Option, and the number of Shares which have been authorized for issuance under the Plan but as to which no Options have yet been granted
or which have been returned to the Plan, and the per share exercise price of each such Option, shall be proportionately and equitably
adjusted for any increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, combination, reclassification,
the payment of a stock dividend on the Shares or any other increase or decrease in the number of such Shares effected without receipt
of consideration by the Company without changing the aggregate exercise price, provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been effected without receipt of consideration. Such adjustment shall
be made by the Administrator, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issue by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of Shares subject to an Option. The Administrator may, if it so determines
in the exercise of its sole discretion, also make provision for proportionately adjusting the number or class of securities covered by
any Option, as well as the price to be paid therefor, in the event that the Company effects one or more reorganizations, recapitalizations,
rights offerings, or other increases or reductions of its outstanding Shares, and in the event of the Company being consolidated with
or merged into any other corporation.

 

4.2 Merger
Transaction. In the event of a Merger Transaction, any and all outstanding and unexercised unvested Options will be cancelled
for no consideration, unless determined otherwise by the Administrator. The Administrator at its sole and absolute discretion may decide:
(i) if and how the unvested Options, as the case may be, shall be canceled, exchanged, assumed, replaced, repurchased or accelerated;
(ii) if and how vested Options (including Options with respect to which the vesting period has been accelerated) shall be exercised, exchanged,
assumed, replaced and/or sold by the Trustee or the Company (as the case may be) on behalf of the Participants, including determining
that all unexercised vested Options shall be cancelled for no consideration upon a Merger Transaction; (iii) how Underlying Shares issued
upon exercise of the Options granted under of the trust tracks and held by the Trustee on behalf of 102 Participants shall be replaced
and/or sold by the Trustee on behalf of these Participant; and (iv) how any treatment of Options and underlying Shares may be made subject
to any payment or escrow arrangement, or any other arrangement determined within the scope of the Merger Transaction in relation to Options
and underlying Shares of the Company.

 

In the case of assumption
and/or substitution of Options, appropriate adjustments shall be made so as to reflect such action and all other terms and conditions
of the Grant Letter shall remain unchanged, including but not limited to the vesting schedule, all subject to the determination of the
Board, which its determination shall be at its sole discretion and final. The grant of any substitutes for the Options to Participants
further to a Merger Transaction, as provided in this section, shall be considered to be in full compliance with the terms of this Plan.
The value of the exchanged Options pursuant to this section shall be determined in good faith solely by the Board, based on the Fair Market
Value, and its decision shall be final and binding on all the Participants.

 

For the purposes of this
section, the mechanism for determining the assumption or exchange as aforementioned shall be agreed upon between the Board and the successor
company.

 

Without derogating from the
above, in the event of a Merger Transaction the Board shall be entitled, at its sole discretion, to require the Participants to exercise
all vested Options within a set time period and sell all of their Shares on the same terms and conditions as applicable to the other shareholders
selling their Company’s Shares as part of the Merger Transaction. Each Participant acknowledges and agrees that the Board shall
be entitled, subject to any applicable law, to authorize any one of its members to sign any agreement and any share transfer deeds in
customary form with respect to the Shares held by such Participant and that such agreement and share transfer deed, as applicable, shall
bind the Participant.

 

    6

     

    

 

Despite the aforementioned
and for the avoidance of any doubt, if and when the method of treatment of Options within the scope of a Merger Transaction, as provided
above, will in the sole opinion of the Board prevent the consummation of the Merger Transaction, or materially risk the consummation of
the Merger Transaction, the Board may determine different treatment for different Options held by Participants such that not all Options
will be treated equally within the scope of the Merger Transaction.

 

4.3 Fraction
of Shares. In the event that the Company will be required to issue to a Participant a fraction of a Share pursuant to this
Section 4, the Company will not issue fraction of a Share and the number of Shares shall be rounded down to the closest whole number
of Shares.

 

4.4 Calculation.
For the purposes of this section, the Company’s calculation will be final, and the Participant shall have no claims or demands against
the Company or anyone on its behalf.

 

4.5 Re-Organization.
In the event of a Re-Organization the Shares underlying the Options subject to the Plan shall be exchanged or converted into Shares of
the Company or successor company in accordance with the exchange effectuated in relation to the Shares of the Company, and the Exercise
Price and quantity of shares shall be adjusted in accordance with the terms of the Re-organization. The adjustments required thereby shall
be determined in good faith solely by the Board.

 

4.6 Spin-Off
Transaction. In the event of a Spin-Off Transaction, the Board may determine that the holders of Options shall be entitled
to receive equity in the new company formed as a result of the Spin-Off Transaction, in accordance with equity granted to the ordinary
Shareholders within the Spin-Off Transaction, taking into account the terms of the Options, including the vesting schedule and Exercise
Price. The determination regarding the Participant’s entitlement within the scope of a Spin-Off Transaction shall be in the sole
and absolute discretion of the Board.

 

5. Administration
of the Plan

 

5.1 Power.
Subject to the Applicable Law, the Articles and any resolution to the contrary by the Board, the Administrator is authorized, at its sole
and absolute discretion, to exercise all powers and authorities either specifically granted to it under the Plan or necessary or advisable
in the administration of the Plan (subject to the approval of the Board, if such approval is required by the Applicable Law) including,
without limitation:

 

(A) to determine: (i) the
Participants in the Plan, the number of Options for each Participant’s benefit and the Exercise Price; (ii) the time or times at
which Options shall be granted; (iii) whether, to what extent, and under what circumstances an Option may be settled, canceled, forfeited,
exchanged, or surrendered; (iv) any terms and conditions in addition to those specified in the Plan under which an Option may be granted;
(v) any measures, and to take any actions, as deemed necessary or advisable for the administration and implementation of the Plan; (vi)
the terms and conditions under which a Participant may elect to receive Ordinary Shares upon the exercise of the Option or in exchange
for the Underlying Shares; (vii) subject to Applicable Law, to make an Election and (viii) to appoint a Trustee; and

 

(B) to interpret the provisions
of the Plan and to take all actions resulting therefrom including without limitation: (i) subject to Section 7 below, to accelerate
the date on which Granted Option under the Plan becomes exercisable; (ii) to waive or amend Plan provisions relating to exercise of Options,
including exercise of Options after termination of employment, for any reason; and (iii) to amend any of the terms of the Plan, or any
prior determinations of the Administrator.

 

    7

     

    

 

5.2
Limitations. Notwithstanding the provisions of Section 5.1 above, no interpretations, determinations or actions of the
Administrator shall contradict the provisions of Applicable Law, and no waiver or amendment with respect to the Plan shall have a material
adverse affect on any Participant’s rights in connection with any Granted Option under the Plan without receiving the consent of
such Participant.

 

6. Grant
of Options

 

6.1 Conditions
for Granting Options. Options may be granted at any time after the fulfillment
of all of the following conditions: (i) the Plan has been approved by the necessary corporate bodies of the Company; (ii) thirty (30)
days after a request for approval of the Plan has been filed for approval with the ITA or any longer period, as pursuant to the requirements
of the Tax Ordinance; (iii) the Grant has been approved by the necessary corporate bodies of the Company; and (iv) all other approvals,
consents or requirements necessary by Applicable Law have been received or met.

 

6.2
Date of grant. The date on which Options shall be deemed granted under the Plan shall be the date on which the Company’s
Board approved the grant or the date specified as the date of grant in the Grant Letter, if specified (the “Date of Grant”).

 

6.3 Eligibility
for Options. The Administrator may grant Options to any Employee, officer, Director,
or Consultant of the Company and its Affiliates.

 

6.4
Grant Letter. Any grant of Options to a Participant shall be made in a form of a Grant Letter and shall include a copy of the
Plan. The receipt by a Participant of such Grant Letter shall be deemed as consent by such Participant that the Option is subject to all
the terms and conditions of the Grant Letter and the Plan.

 

6.5 Material
Breach. In an event of a material breach by a Participant of the terms of this
Plan or the Grant Letter provided to the Participant, or the applicable engagement agreement with such Participant, and without derogating
from any of the remedies available to the Company under any Applicable Law, the Company may, at its sole discretion, after sending a written
notice to such Participant, forfeit the right of the Participant to some or all the Options granted to such Participant.

 

7. Exercise
of Options and Sale of Shares 

 

7.1 Exercise
Price; Purchase Price. The Exercise
Price per Underlying Share deliverable upon the exercise of an Option shall be determined by the Administrator. The Exercise Price shall
be set forth in the respective Grant Letter.

 

7.2
Vesting Schedule. All Options granted on a certain date may be subjected to continued employment with or service to the Company
or Affiliate by the Participant, become vested and exercisable in accordance with the vesting schedule as shall be determined by the Administrator
for each Participant and detailed in the respective Grant Letter.

 

7.3 minimum
Exercise. Unless otherwise determined by the Administrator, no exercise of Options by any Participant shall be for a quantity
of less than 10% of the Granted Options. An Option may not be exercised for fractional shares. The exercise of a portion of the Granted
Options shall not cause the expiration, termination or cancellation of the remaining unexercised Options.

 

    8

     

    

 

7.4 Manner
of Exercise. An Option may be exercised by and upon the fulfillment of the following prerequisite terms and conditions:

 

(A) Exercise Notice-
The signing by the Participant, and delivery to both the Company (at its principal office) and the Trustee (if the Options are held by
a Trustee), of an exercise notice form as prescribed by the Administrator, with such details including but not limited to: (i) the identity
of the Participant; (ii) the number of Options to be exercised; and (iii) the Exercise Price to be paid (the “Exercise Notice”).

 

(B) Exercise Price-
The payment by the Participant to the Company, in such manner as shall be determined by the Administrator, of the Exercise Price with
respect to all the Options exercised, as set forth in the Exercise Notice.

 

(C) Issuance of Underlying
Shares- Upon the delivery of a duly signed Exercise Notice and the payment to the Company of the Exercise Price with respect to
all the Options specified therein, the Company shall issue the Underlying Shares to the Trustee (according to the applicable Holding Period)
or to the Participant, as the case may be.

 

(D) Expenses-
All costs and expenses including broker fees and bank commissions, derived from the exercise of Options or Underlying Shares, shall be
borne solely by the Participant.

 

7.5 Exercise
Restrictions. Notwithstanding anything to the contrary herein, in the event the Participant initiates any legal proceedings
to be maintained or instituted against the Company or its Representatives or participates in any manner in any legal proceedings against
the Company or its respective Representatives at any time, the Participant’s right to exercise any unexercised Options granted to
such Participant, whether vested or not on such date, shall cease as of such date and the Options shall thereupon expire. For purposes
of this Section only, the term “Representatives” shall mean the respective past, present and future officers, directors,
employees, consultants, holders of equity securities, Affiliates, successors and assigns.

 

8. Waiver
of Option Rights. At any time prior to the expiration of any unexercised Granted Option, a Participant may waive his rights
to such Option by a written notice to the Company’s principal office. Such notice shall specify the number of Granted Options, which
the Participant waives, and shall be signed by the Participant. Upon receipt by the Company of a notice of waiver of such rights, such
Options shall expire and shall become available for future Grants under the Plan.

 

9. Term
of the Options. Unless earlier terminated pursuant to the provisions of this Plan, all granted but unexercised Options shall
expire and cease to be exercisable at 5:00 p.m. Israel time on the 10th anniversary of the Commencement Date of such Options.

 

10.
Termination of Employment

 

10.1Termination
of Employment. If a Participant ceases to be an employee, director, officer or
Consultant of the Company or Affiliate for any reason (“Termination of Employment”) other than by reason of death,
Retirement, Disability or Cause, then any vested but unexercised Options on the date of Termination of Employment (as shall be determined
by the Company or Affiliate, at its sole discretion) granted on the Participant’s behalf (“Exercisable Options”)
may be exercised, if not previously expired, on or prior to the earlier of: (a) 90 days after the date of Termination of Employment; or
(b) the end of the Term of the Options. All other Granted Options for the benefit of Participant shall expire upon the date of Termination
of Employment.

 

10.2
Termination for Cause. In the event of Termination of Employment of a Participant for Cause, then: (A) the Participant’s
right to exercise any unexercised Granted Options, whether vested or not on the date of Termination of Employment, shall cease as of such
date of Termination of Employment, and the Options shall thereupon expire, and (B) any unvested Shares shall terminate and expire on the
day the Participant has been notified of his/her dismissal. Pending a determination of whether a Participant’s conduct, activities
or circumstances give rise to Cause, the Administrator shall have the authority to suspend the exercise, payment, delivery or settlement
of all or any portion of such Participant’s outstanding Awards pending any investigation of the matter. If subsequent to the Participant’s
Termination of Employment, but prior to the exercise of Options granted to such Participant, the Administrator determines that either
prior or subsequent to the Participant’s Termination of Employment, the Participant engaged in conduct which would constitute Cause,
then the Participant’s right to exercise the Options granted to such Participant shall immediately cease upon such determination
and the Options shall thereupon expire. The determination by the Administrator as to the occurrence of Cause shall be final and conclusive
for all purposes of this Plan.

 

    9

     

    

 

10.3
Termination by Reason of Death, Retirement, or Disability

 

(A) Death-
If Termination of Employment is by reason of death of the Participant, than his/her estate, personal representative or beneficiaries may
exercise the Participant’s Options, to the extent it was vested within the sixty (60) days period following the Participant’s
death, at any time but not later than the earlier of: (i) the one (1) year anniversary of Participant’s death; or (ii) the end of
the Term of the Options. All other Options granted for the benefit of a Participant and which have not vested within such 60-days period
shall expire upon the date of death.

 

(B) Disability and
Retirement- If Termination of Employment is by reason of Retirement or Disability of the Participant, the Participant may exercise
any portion of the Options which have vested within the ninety (90) days period following the date of Retirement or Disability, at any
time but not later than the earlier of: (i) the one (1) year anniversary of the date of Retirement or Disability, as the case may be;
or (ii) the end of the Term of the Options. All other options for the benefit of a Participant and which have not vested within such 90
days period shall expire upon the date of Retirement or Disability, as applicable.

 

10.4
Exceptions. In special circumstances pertaining to the Termination of Employment of a certain Participant, the Administrator
may at its sole discretion decide to extend any of the periods stated above in Sections 10.1-10.3.

 

10.5
Transfer of Employment or Service. Subject to the receipt of appropriate approvals from the ITA, if applicable, a Participant’s
right to Options granted to him/her under this Plan shall not be terminated, expire or forfeited solely as a result of the fact that the
Participant’s employment or service as an employee, officer or director changes from the Company to an Affiliate or vice versa.
Any and all tax consequence of such a transfer, if any, shall be solely borne by the Participant.

 

11.
Options and Tax Provisions. All Options shall be granted under the Plan in accordance with one of the following Tax Provisions:

 

(A) The Company may grant
Options to 102 Participant in accordance with the provisions of Section 102 and the Section 102 Rules; and

 

(B) The Company may Grant
Options to Non-Qualified Participant in accordance with the provisions of Section 3(i).

 

11.1
Tax Provision Selection. The Company shall elect under which Tax Provision each Option is granted at its sole discretion and
in accordance with any Applicable Law (the “Election”). The Company shall notify each Participant in the Grant Letter,
under which Tax Provision the Options and/or Shares are granted and, if applicable, under which Tax Track, each Option is granted.

 

11.2
Section 102 Trustee Tax Tracks.

 

(a) If the Company elects
to grant Options to 102 Participants through: (i) the Capital Gains Track Through a Trustee; or (ii) the Earned Income Track, then, in
accordance with the requirements of Section 102, the Company shall appoint a Trustee who will hold in trust at least for the Holding period
on behalf of each 102 Participant the granted Options and the Underlying Shares issued upon exercise of such Options.

 

(b) The Holding Period for
the Options and/or Shares will be as follows: (i) The Capital Gains Tax Track Through a Trustee - if the Company elects to grant
the Options according to the provisions of this track, then the Holding Period will be 24 months from the Date of Grant, or such period
as may be determined in any amendment of Section 102; and (ii) Earned Income Track - if the Company elects to grant Options according
to the provisions of this track, then the Holding Period will be 12 months from the Date of Grant, or such period as may be determined
in any amendment of Section 102.

 

    10

     

    

 

(c) Subject to Section 102
and the Section 102 Rules, Participants shall not be able to receive from the Trustee, nor shall they be able to sell or dispose of the
Options or Underlying Shares before the end of the applicable Holding Period. If a Participant sells or removes the Options or the Underlying
Shares form the Trustee before the end of the applicable Holding Period (“Breach”), the Participant shall pay all applicable
taxes imposed on such Breach by Section 7 of the Section 102 Rules.

 

(d) In the event of a distribution
of rights, including an issuance of bonus shares, in connection with Options and/or Underlying Shares (the “Additional Rights”),
all such Additional Rights shall be granted and/or issued to the Trustee for the benefit of Participants, and shall be held by the Trustee
at least for the remainder of the Holding Period applicable to the Options and/or Underlying Shares, as applicable. Such Additional Rights
shall be treated in accordance with the provisions of the applicable Tax Track.

 

11.3
Income Tax Track Without a Trustee. If the Company elects to grant Options to 102 Participants according to the provisions
of the Income Tax Track Without a Trustee, then the Options will not be subject to a Holding Period.

 

11.4
Concurrent Conditions. The Holding Period, if any, is in addition to the vesting period with respect to Options, as specified
in Section 7.2 of the Plan or in the Grant Letter. The Holding Period and vesting period may run concurrently, but neither is a
substitute for the other, and each are independent terms and conditions for granted Options.

 

11.5
Trust Agreement. The terms and conditions applicable to the trust relating to the Tax Track elected by the Company, as appropriate,
shall be set forth in Trust Agreement.

 

12.
Term of Shares Held In Trust. Unless otherwise extended by the Administrator, in its sole discretion, no Underlying Shares
issued upon exercise of Options shall be held by the Trustee on behalf of the Participant for a period longer than ten (10) years after
the end of the Term of the applicable Options. The Administrator shall instruct the Trustee as to the transfer of any Underlying Shares

 

13.
Rights as a Shareholder. Unless otherwise specified in the Plan, a Participant shall not have any rights as a Shareholder with
respect to Underlying Shares issued under this Plan, until such time as the Shares shall be registered in the name of the Participant
in the Company’s register of Shareholders

 

13.1       Dividend.
The Participants shall be entitled to receive any cash dividend paid to the Shareholders with respect to Underlying Shares issued to them
under this Plan. Payments of such dividend to the Participants shall be subject to any required tax being withheld or otherwise deducted
by the Trustee or the Company, as agreed between the Company and the Trustee, in accordance with Applicable Law.

 

14.
No Special Employment Rights. Nothing contained in this Plan shall confer upon any Participant any right with respect to the
continuation of employment by or service to the Company or Affiliate or to interfere in any way with the right of the Company or Affiliate,
to terminate such employment or service or to increase or decrease the compensation of the Participant. The Options are extraordinary,
one-time benefits granted to the Participants and are not and shall not be deemed a salary component for any purpose whatsoever, including,
in connection with calculating severance compensation under any Applicable Law.

 

    11

     

    

 

15.
Restrictions on Sale of Options and Shares 

 

15.1
Options. Options may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of, except by will or
the laws of descent.

 

15.2
Acceleration Provision. The Administrator, at its sole discretion, may decide to add a provision in certain Grant Letters,
according to which in case of a Merger or IPO, all or some of the unvested Options or/and Shares, shall automatically accelerate, and
become fully vested and exercisable upon such event.

 

15.3 Acknowledgement
To Restrictions. As a condition for the grant of Options and issuance of Underlying
Shares thereunder, each Participant shall acknowledge the terms and provisions of the corporate documents of the Company, including organizational
documents, as amended from time to time, and all other agreements among the Shareholders which are applicable to the holders of the Company’s
Shares and shall agree to be bound by their terms with respect to any restriction applicable to the Shares of the Company (including without
limitation, any right of first refusal, co-sale and bring along provisions, as applicable).

 

16.
Tax Matters.

 

(a) This Plan shall be governed
by, and shall conform with and be interpreted so as to comply with, the requirements of Section 102 and any written approval or ruling
from the ITA. All tax consequences under any Applicable Law (other than stamp duty) which may arise from the Grant of the Options, from
the exercise of Options or from the holding or sale of the Underlying Shares (or other securities issued under the Plan) by or on behalf
of the Participant or from any other event or act hereunder (whether any act of the Participant or of the Company or its Affiliates or
of the Trustee), shall be borne solely on the Participant. The Participant shall indemnify the Company and/or Affiliate and /or the Trustee,
as the case may be, and hold them harmless, against and from any liability for any such tax or any penalty, interest or indexing.

 

(b) Except as otherwise required
by Applicable Law, the Company shall not be obligated to honor the exercise of any Option by or on behalf of a Participant or the sale,
exchange or other transfer of any Underlying Shares issued upon exercise of Options until all tax consequences (if any) arising from the
exercise of such Options or sale, exchange or other transfer of Shares are resolved to the full satisfaction of the Company. Without derogating
from the above, the Company and/or, when applicable, the Trustee shall not be required to release any share certificate to a Participant
until all required payments have been fully made.

 

(c) If the Company elects
to grant Options according to the provisions of the Income Tax Track Without a Trustee, and if prior to the Exercise of any and/or all
of these Options, such Participant ceases to be an Employee, director, or officer of the Company or Affiliate, the Participant shall deposit
with the Company a guarantee or other security as required by law, in order to ensure the payment of applicable taxes upon the Exercise
of such Options, as the case may be.

 

(d) It is clarified that
if any grants made under either of the tax tracks under Section 102 do not comply with the requirement of such tax route, the grant shall
be considered subject to the Income Tax Track Without a Trustee, or Section 3(i) or Section 2 of the Tax Ordinance, as applicable, and
the Participant irrevocably waives any claim and/or demand it has or may have with respect to the tax treatment of the Option.

 

17. Withholding
Taxes.

 

(a) Whenever an amount with
respect to withholding tax relating to Options granted to a Participant and/or Underlying Shares issued upon the exercise thereof is due
from the Participant and/or the Company and/or an Affiliate, the Company and/or an Affiliate and/or the Trustee shall have the right to
demand from a Participant such amount that would be sufficient to satisfy any applicable withholding tax requirements related thereto,
and whenever Shares or any other non-cash assets are to be delivered pursuant to the exercise of an Option and the sale of Underlying
Shares, or transferred thereafter, the Company and/or an Affiliate and/or the Trustee shall have the right to require the Participant
to remit to the Company and/or to the Affiliate, or to the Trustee an amount in cash sufficient to satisfy any applicable withholding
tax requirements related thereto, and if such amount is not timely remitted, the Company and/or the Affiliate and/or the Trustee shall
have the right to withhold or set-off (subject to Applicable Law) such Shares or any other non-cash assets pending payment by the Participant
of such amounts.

 

    12

     

    

 

(b) In any case where a tax
is required to be withheld in connection with the delivery of Shares of the Company or of an Affiliate under the Plan, the Administrator
may at its sole discretion (subject to Applicable Law) grant (either at the time of the grant or thereafter) to a Participant the right
to elect, pursuant to such rules and subject to such conditions as the Administrator may establish, that: (i) the Company reduce the number
of Shares to be delivered by (or otherwise reacquire from the Participant) the appropriate number of Shares, valued in a consistent manner
at their Fair Market Value or at the sales price in accordance with authorized procedures for cashless exercises, necessary to satisfy
the minimum applicable withholding obligation on exercise, vesting or payment; or (ii) have the Company withhold from proceeds of the
sale of such Shares (either through a voluntary sale or through a mandatory sale arranged by the Company on the Participant’s behalf)
the minimum amount required to be withheld.(c) Until all taxes have been paid in accordance with Rule 7 of the Section 102 Rules or any
other Applicable Law, Options and/or Underlying Shares may not be sold, transferred, assigned, pledged, encumbered, or otherwise willfully
hypothecated or disposed of, and no power of attorney or deed of transfer, whether for immediate or future use may be validly given. Notwithstanding
the foregoing, the Options and the Underlying Shares may be validly transferred upon the death of a Participant in accordance with Section
19 of this Plan, provided that the transferee thereof shall be subject to the provisions of Section 102 and the Section 102 Rules
as would have been applicable to the deceased Participant in the event he/she would have survived.

 

18. No
Transfer of Options. The Trustee shall not transfer Options to any third party, including a 102 Participant, except in accordance
with instructions received from the Administrator.

 

19.
Transfer of Rights Upon Death. No transfer of any Option or Underlying Share issued upon the exercise thereof by will or by
the laws of descent shall be effective to bind the Company unless the Company shall have been furnished with all of the following signed
and notarized documents: (i) a written request for such transfer and a copy of the legal documents creating and confirming the right of
the person acting with respect to the Participant’s estate and of the transferee; (ii) written consent by the transferee to pay
any payment due according to the provisions of the Plan and otherwise comply by all the terms of the Plan; and (iii) any such other evidence
as the Administrator may deem necessary to establish the right to the transfer of the Granted Options or Underlying Shares issued upon
the exercise thereof and the validity of the transfer.

 

20.
No Right of Others to Options. Subject to the provisions of the Plan, no person other than the Participant shall have any right
with respect to Options granted to the Participants under the Plan.

 

21.
Expenses and Receipts. The expenses incurred in connection with the administration and implementation of the Plan (including
any applicable stamp duty) shall be borne by the Company. Any proceeds received by the Company in connection with the exercise of any
Option may be used for general corporate purposes.

 

22.
Required Approvals. The Plan is subject to the receipt of all approvals required under the Applicable Law including under the
Tax Ordinance.

 

23.
Treatment of Participants. There is no obligation for uniformity of treatment of Participants.

 

    13

     

    

 

24.
No Conflicts. In the event of any conflict between the terms of the Plan and the Grant Letter, the Plan shall prevail, unless
the Grant Letter stated specifically that the conflicting provision in the Grant Letter shall prevail.

 

25.
Participant Undertakings. By entering into this Plan, the Participant shall: (i) agree and acknowledge that he or she have
received and read the Plan, the Grant Letter and the Trust Agreement; (ii) undertake all the provisions set forth in Section 3(i) or Section
102 as applicable (including provisions regarding the applicable Tax Track that the Company has elected), the Plan, the Grant Letter and
the Trust Agreement (if applicable); (iii) sign any required documentation, including but not limited, an irrevocable power of attorney
and proxy; and (iv) to the extent the Options are granted under Section 102, the 102 Participant shall undertake that subject to the provisions
of Section 102 and the Section 102 Rules, he/she shall not sell or release the Options or Underlying Shares from trust before the end
of the Holding Period (if any).

 

26. Governing Law and Jurisdiction.
This Plan shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to
its principles of conflict of laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to
this Plan.

 

27. Non-Exclusivity
of the Plan. The adoption of this Plan by the Board shall not be construed as amending, modifying or rescinding any previously
approved incentive arrangements or imposing any limitations on the power of the Board to adopt other incentive arrangements as it may
deem desirable, including, without limitation, the granting of shares or options otherwise than under this Plan.

 

* * * * *

 

 

14

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