Document:

Exhibit 4.23

 

COMPENSATION POLICY

 

OPTIBASE LTD.

 

Compensation Policy for Executive Officers and Directors

 

(As Adopted by the Shareholders on February 14, 2019)

 

 

Table of Contents

 

	 	 	
 Page

 

	
A.

	
Overview and Objectives

	
A- 3

	
B.

	
Base Salary and Benefits

	
A- 4

	
C.

	
Cash Bonuses

	
A-5

	
D.

	
Equity-Based Compensation

	
A- 7

	
E.

	
Retirement and Termination of Service Arrangements

	
A- 7

	
F.

	
Exemption, Indemnification and Insurance

	
A- 8

	
G.

	
Arrangements upon Change of Control

	
A-9

	
H.

	
Board of Directors Compensation

	
A- 10

	
I.

	
Miscellaneous

	
A-10

 

A - 2

 

A. Overview and Objectives

 

		1.	
Introduction

 

This document sets forth the Compensation Policy for Executive Officers and Directors (this "Compensation Policy" or "Policy") of Optibase Ltd. ("Optibase" or the "Company"), in accordance with the requirements of the Companies Law of 1999 (the "Companies Law").

 

Compensation is a key component of Optibase's overall human capital strategy to attract, retain, reward, and motivate highly skilled individuals that will enhance Optibase's value and otherwise assist Optibase to reach its business and financial long term goals. Accordingly, the structure of this Policy was established to tie the compensation of each officer to Optibase's goals and performance.

 

For purposes of this Policy, "Executive Officers" shall mean "Office Holders" as such term is defined in Section 1 of the Companies Law, excluding, unless otherwise expressly indicated herein, Optibase's directors; and "Directors" shall mean the Optibase's directors, as shall be from time to time, including the Executive Chairperson, unless otherwise expressly indicated herein.

 

This Compensation Policy shall serve as Optibase’s Compensation Policy for three (3) years, commencing as of its adoption.

 

The Compensation Committee and the Board of Directors of Optibase (the "Compensation Committee" and "Board" respectively) shall review and reassess the adequacy of this Policy from time to time, as required by the Companies Law.

 

		2.	
Objectives

 

Optibase's objectives and goals in setting this Compensation Policy are to attract, motivate and retain highly experienced personnel who will provide leadership for Optibase's success and enhance shareholder value, while supporting a performance culture that is based on merit, and rewards excellent performance in the long term, while recognizing Optibase's core values. To that end, this Policy is designed, among others:

 

		2.1.	
To closely align the interests of the Executive Officers with those of Optibase's shareholders in order to enhance shareholder value;

 

		2.2.	
To provide the Executive Officers with a structured compensation package, putting the emphasis on a proper balance between the fixed components, i.e., the base salaries and benefits, and on the variable compensation, such as bonuses and equity-based compensation in order to minimize potential conflicts between the interests of Executive Officers and those of Optibase;

 

		2.3.	
To strengthen the retention and the motivation of Executive Officers in the long term.

 

		3.	
Compensation structure and instruments

 

Compensation instruments under this Compensation Policy may include the following:

 

		·	
Base salary;

 

		·	
Benefits;

 

		·	
Cash bonuses;

 

		·	
Equity based compensation; and

 

		·	
Retirement and termination of service arrangements.

 

A - 3

 

		4.	
Overall Compensation - Ratio Between Fixed and Variable Compensation

 

This Policy aims to balance the mix of "Fixed Compensation" (comprised of base salary and benefits) and "Variable Compensation" (comprised of cash bonuses and equity based compensation) in order to, among other things, appropriately incentivize Executive Officers to meet Optibase's short and long term goals while taking into consideration the Company’s need to manage a variety of business risks.

 

The total Variable Compensation of each Executive Officer (as well as the Executive Chairman of the Board ("Executive Chairman")) shall not exceed 60% of the total compensation package of such Executive Officer (and the Executive Chairman) on an annual basis. The Compensation Committee and Board believe that such range expresses the appropriate compensation mix in the event that all performance objectives are achieved and assumes that all compensation elements are granted with respect to a given year.

 

		5.	
Intra-Company Compensation Ratio

 

In the process of drafting this Policy, Optibase’s Board and Compensation Committee have examined the ratio between employer cost, as such term is defined in the Companies Law, associated with the engagement of the Executive Officers (as well as the Executive Chairman) and the average and median employer cost associated with the engagement of the other employees of Optibase (the "Ratio"). The Compensation Committee and Board believe that the current Ratio does not adversely impact the work environment in Optibase.

 

B. Base Salary and Benefits

 

		6.	
Base Salary

 

		6.1.	
The base salary varies between Executive Officers (among themselves) and the Executive Chairman of the Board, and is individually determined by the Compensation Committee and the Board (unless other approvals are required under any applicable law) according to the educational background, prior vocational experience, qualifications, role, business responsibilities, past performance and previous compensation arrangements of such Executive Officer and Executive Chairman of the Board.

 

		6.2.	
The maximum monthly base salary for each of the following roles shall be as follows:

 

		(i)	
Chief Executive Officer ("CEO") – up to NIS 100,000 for a full time position

 

		(ii)	
CEO of the Company's subsidiary ("Subsidiary CEO") – up to NIS 90,000 for a full time position;

 

		(iii)	
Executive Officer who is not a director, CEO or Subsidiary CEO – up to NIS 50,000 for a full time position

 

Such amounts may be linked to increases in the Israeli Consumer Price Index ("Israeli CPI") or to the representative rate of exchange of the US dollar, as the case may be.

 

		6.3.	
The Executive Chairman may be paid management fee in amount that shall not exceed NIS 50,000 per month.

 

		7.	
Benefits

 

		7.1.	
In addition to the base salary, the following benefits may be granted to the Executive Officers in order, among other things, to comply with legal requirements:

 

		·	
Vacation days in accordance with market practice and applicable law;

 

		·	
Sick days in accordance with market practice and applicable law;

 

		·	
Convalescence pay according to applicable law;

 

A - 4

 

		·	
Monthly remuneration for a study fund, as allowed by applicable tax law and with reference to Optibase’s practice and common market practice;

 

		·	
Contribution by Optibase on behalf of the Executive Officer to an insurance policy or a pension fund, as allowed by applicable tax law and with reference to Optibase’s policies and procedures and common market practice; and

 

		·	
Contribution by Optibase on behalf of the Executive Officer towards work disability insurance, as allowed by applicable tax law and with reference to Optibase’s policies and procedures and common market practice.

 

		7.2.	
Optibase may offer additional benefits to its Executive Officers, including but not limited to: communication, company car and travel benefits, insurances, other benefits (such as newspaper subscriptions, academic and professional studies), etc., including their gross up.

 

		7.3.	
Optibase may reimburse its Executive Officers and its Executive Chairman for reasonable work-related expenses incurred as part of their activities, including without limitations, meeting participation expenses, reimbursement of business travel including a daily stipend when traveling and accommodation expenses. Optibase may provide advance payments to its Executive Officers in connection with work-related expenses.

 

		7.4.	
Non-Israeli Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which they are employed.

 

		8.	
Signing Bonus

 

At the Compensation Committee’s and Board’s discretion, Optibase may grant a newly recruited Executive Officer a signing bonus. The signing bonus shall not exceed two (2) monthly base salaries of such Executive Officer.

 

C. Cash Bonuses

 

		9.	
Annual Bonuses

 

		9.1.	
The payment of annual bonuses to the Executive Chairman and any Executive Officer for any particular fiscal year shall be subject to the fulfillment (in addition to the fulfillment of the applicable objectives set forth below as the case may be) of any one of the two following criteria: (a) that Optibase's EBITDA was at least USD $10 million (on a consolidated basis) during such fiscal year; or (b) that Optibase's net profit for such fiscal year was at least USD $500,000, net of equity gains or losses, and net of non-recurring expenses related to the purchase or disposal of real estate investments.

 

		9.2.	
The Compensation Committee and Board may decide, at their sole discretion, to grant annual bonuses to the Executive Chairman and the Executive Officers, subject to the fulfillment of the pre-conditions for payment of bonuses as detailed in section 9.1 above.

 

		9.3.	
The annual bonus to the Executive Chairman and the CEO will be based on measurable criteria. The measurable criteria and their relative weight shall be determined by the Compensation Committee and the Board in respect of each calendar year. These measurable criteria may include, inter alia, objectives relating to the annual income, annual profit (net profit, pre tax profit), budget, annual EBITDA, acquisition and/or disposal of assets, financing, re-financing and fundraising.

 

		9.4.	
In addition, the Company may grant the CEO a bonus of up to three (3) monthly base salaries, at the sole discretion of the Compensation Committee and Board, based on the CEO's contribution to the Company.

 

		9.5.	
The Company may also grant, subject to the approval of the Compensation Committee and the Board, an annual bonus to its Executive Officers (other than the CEO) for their contribution to the Company. Such grants may be based in whole or in part on discretion, provided that they do not exceed the ceiling specified in section 9.6 below.

 

A - 5

 

		9.6.	
The annual bonus that may be paid to the Executive Officers for any fiscal year shall not exceed six (6) monthly base salaries to the CEO, and three (3) monthly base salaries to any other Executive Officer (excluding the CEO). The annual bonus that may be paid to the Executive Chairman for any fiscal year shall not exceed two (2) monthly payments of management fee.

 

		9.7.	
The Board, following the recommendation of the Compensation Committee, shall be entitled to decrease the annual bonus to be paid to the Executive Chairman and/or Executive Officers based on measurable criteria (if such criteria were determined) or cancel such grant of bonuses altogether in its sole discretion, even in the event measurable criteria were determined and met..

 

		10.	
Special Bonuses

 

In addition to the annual bonus, Optibase may grant its Executive Chairman and Executive Officers (other than the CEO) a special bonus as an award for special achievements (such as in connection with mergers and acquisitions, offerings, achieving target budget or business plan under exceptional circumstances or, regarding the Executive Officers, special recognition in case of retirement) at the discretion of the Compensation Committee and Board which shall not exceed three (3) monthly base salaries for any Executive Officer (other than the CEO) and two (2) monthly payments of management fee for the Executive Chairman.

 

		11.	
Pro Rata Payment

 

Should the employment or service of the Executive Chairman or any Executive Officer terminate prior to the end of a fiscal year, Optibase may pay the Executive Chairman or the Executive Officer his or her pro rata share of that fiscal year’s bonus, based on the period the Executive Chairman or such Executive Officer was employed by the Company or has served in the Company.

 

		12.	
Compensation Recovery ("Clawback")

 

		12.1.	
In the event of an accounting restatement, Optibase shall be entitled to recover from its Executive Chairman or Executive Officers the bonus compensation in the amount in which such bonus exceeded what would have been paid under the financial statements, as restated, provided that a claim is made by Optibase prior to the third anniversary of fiscal year end of the restated financial statements.

 

		12.2.	
Notwithstanding the aforesaid, the compensation recovery will not be triggered in the following events:

 

		·	
The financial restatement is required due to changes in the applicable financial reporting standards; or

 

		·	
The Compensation Committee has determined that clawback proceedings in the specific case would be impossible, impractical or not commercially or legally efficient; or

 

		·	
The amount to be paid under the clawback proceedings is less than 10% of the relevant bonus received by the Executive Chairman or Executive Officer.

 

		12.3.	
Nothing in this Section 12 derogates from any other "clawback" or similar provisions regarding disgorging of profits imposed on the Executive Chairman and Executive Officers by virtue of applicable securities laws.

 

A - 6

 

D. Equity-Based Compensation

 

		13.	
General and Objectives

 

		13.1.	
The Compensation Committee and Board may grant from time to time equity-based compensation which will be individually determined and awarded according to the performance, educational background, prior business experience, qualifications, role and the personal responsibilities of the Executive Officer. Equity-based compensation may also be awarded to the Directors, subject to the provisions of the Companies Law and the regulations thereunder and the receipt of all additional approvals that may be required under the Companies Law.

 

		13.2.	
The main objectives of the equity-based compensation is to enhance the alignment between the Executive Officers' and Directors' interests with the long term interests of Optibase and its shareholders, and to strengthen the retention and the motivation of Executive Officers in the long term. In addition, since equity-based awards are structured to vest over several years, their incentive value to recipients is aligned with longer-term strategic plans.

 

		13.3.	
The equity based compensation offered by Optibase is intended to be in a form of share options, restricted shares and/or other equity based awards, such as RSUs, in accordance with the Company's incentive plan in place as may be updated from time to time.

 

		14.	
Fair Market Value

 

The fair market value of the equity-based compensation for each Executive Officer and each Director shall not exceed USD $200,000, as shall be determined according to acceptable valuation practices at the time of grant.

 

		15.	
Additional Terms

 

		15.1.	
Subject to any applicable law, Optibase may determine, at the Compensation Committee and the Board’s discretion, the tax regime under which equity-based compensation may be granted, including a tax regime which will maximize the benefit to the Executive Officers and Directors.

 

		15.2.	
All equity-based incentives granted to Executive Officers and Directors shall be subject to vesting periods in order to promote long-term retention of such recipients. Unless otherwise determined in a specific award agreement approved by the Compensation Committee and the Board, grants to Executive Officers shall vest gradually over a period of at least two years.

 

		15.3.	
All other terms of the equity awards shall be in accordance with Optibase's incentive plans and other related practices and policies. Accordingly, the Board may, following approval by the Compensation Committee, extend the period of time for which an award is to remain exercisable and make provisions with respect to the acceleration of the vesting period of any Executive Officer's or Director's awards, including, without limitation, in connection with a corporate transaction involving a change of control, subject to any additional approval as may be required by the Companies Law.

 

E. Retirement and Termination of Service Arrangements

 

		16.	
Advanced Notice Period

 

		16.1.	
Optibase may provide each Executive Officer, according to his or her seniority in the Company, his or her contribution to the Company’s goals and achievements and the circumstances of retirement, a prior notice of termination of up to three (3) months, except for the CEO whose prior notice may be of up to six (6) months. During such advance notice period, the Executive Officer may be entitled to all of the compensation elements, and to the continuation of vesting of his or her options, restricted shares or RSUs.

 

		16.2.	
Optibase may waive the Executive Officer’s services to the Company during the advance notice period and pay the amount payable in lieu of notice, plus the value of benefits.

 

A - 7

 

		17.	
Adjustment Period/Retirement Bonus

 

In addition to the advance notice period, the Compensation Committee and Board may provide an additional adjustment period/retirement bonus that will be determined, among other things, taking into consideration the Executive Officer's seniority in the Company, performance during employment, contribution to Optibase achieving its goals and the circumstances of retirement or termination. The maximum adjustment period/retirement bonus that may be paid to each Executive Officer is as follows:

 

		17.1.	
CEO – for seniority of up to 5 years – the CEO will not be entitled to any Adjustment Period; seniority between 5 to 10 years – up to 4 monthly base salaries; and seniority of 10 years or more – up to 8 monthly base salaries.

 

		17.2.	
Executive Officer (except the CEO) – for seniority of up to 5 years – such Executive Officer will not be entitled to any Adjustment Period; seniority between 5 to 10 years – up to 2 monthly base salary; and seniority of 10 years or more – up to 4 monthly base salaries.

 

The amounts for the adjustment period and the retirement bonus to be granted to an Executive Officer shall be calculated on the Executive Officer’s gross base salary without benefits, bonuses or grants which were granted to him or her during the Executive Officer's employment.

 

		18.	
Additional Retirement and Termination Benefits

 

Optibase may provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory severance pay under Israeli labor laws), or which will be comparable to customary market practices.

 

		19.	
Non-Compete Grant

 

Upon termination of employment and subject to applicable law, Optibase may grant to its Executive Officers a non-compete grant as an incentive to refrain from competing with Optibase for a defined period of time. The terms and conditions of the Non-Compete grant shall be decided by the Board and shall not exceed such Executive Officer's monthly base salary multiplied by six (6).

 

F. Exemption, Indemnification and Insurance

 

		20.	
Exemption

 

Optibase may exempt in advance and retroactively its directors and Executive Officers, from any liability to the Company, in whole or in part, for damages in consequence of his or her duty of care vis-a-vis the Company, to the fullest extent permitted by law and subject to the provisions of the Company’s articles.

 

		21.	
Indemnification

 

Optibase may indemnify its directors and Executive Officers to the fullest extent permitted by applicable law, for any liability and expense that may be imposed on the director or the Executive Officer, as provided in the Indemnity Agreement between such individuals and Optibase, all subject to applicable law and the Company’s articles of association.

 

		22.	
Insurance

 

		22.1.	
Optibase will provide "Directors’ and Officers’ Liability Insurance" (the "Insurance Policy") for its directors and Executive Officers as follows:

 

		·	
The annual premium to be paid by the Optibase shall not exceed 1.5% of the aggregate coverage of the Insurance Policy;

 

A - 8

 

		·	
The limit of liability of the insurer shall not exceed the greater of $25 million or 25% of the Company’s shareholders equity (based on the most recent financial statements of the Company at the time of approval by the Compensation Committee) per incident and insurance period (for a one-year period) in addition to reasonable litigation expenses;

 

		·	
The purchase of each Insurance Policy shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the Insurance Policy reflects the current market conditions, and it shall not materially affect the Company's profitability, assets or liabilities.

 

		22.2.	
Upon circumstances to be approved by the Compensation Committee (and, if required by law, by the Board), Optibase shall be entitled to enter into a "run off" Insurance Policy of up to seven (7) years, with the same insurer or any other insurer, as follows:

 

		·	
The limit of liability of the insurer shall not exceed the greater of $25 million or 25% of the Company’s shareholders equity (based on the most recent financial statements of the Company at the time of approval by the Compensation Committee) per incident and insurance period (for a one-year period) in addition to reasonable litigation expenses;

 

		·	
The annual premium shall not exceed 500% of the last paid annual premium; and

 

		·	
The purchase of such Insurance Policy shall be approved by the Compensation Committee (and, if required by law, by the Board) which shall determine that the Insurance Policy reflects the current market conditions, and that it shall not materially affect the Company's profitability, assets or liabilities.

 

		22.3.	
Optibase may extend the Insurance Policy in place to include cover for liability pursuant to a future public offering of securities as follows:

 

		·	
The additional premium for such extension of liability coverage shall not exceed 50% of the last paid annual premium; and

 

		·	
The purchase of such Insurance Policy shall be approved by the Compensation Committee (and if required by law, by the Board) which shall determine that the Insurance Policy reflects the current market conditions, and it does not materially affect the Company's profitability, assets or liabilities.

 

G. Arrangements upon Change of Control

 

		23.	
The following benefits may be granted to the Directors and/or Executive Officers in addition to the benefits applicable in the case of any retirement or termination of service upon a "Change of Control" following of which the employment of the Executive Officer is terminated or adversely adjusted in a material way:

 

		23.1.	
Vesting acceleration of outstanding options or restricted shares.

 

		23.2.	
Extension of the exercising period of options or restricted shares for Optibase’s Executive Officers for a period of up to one (1) year and two (2) years, respectively, following the date of termination of employment.

 

		23.3.	
For Executive Officers only - up to an additional six (6) months of continued base salary and benefits following the date of employment termination (the "Additional Adjustment Period"). For avoidance of doubt, such additional Adjustment Period shall be in addition to the advance notice and adjustment periods pursuant to Sections 14 and 15 of this Compensation Policy.

 

A - 9

 

		23.4.	
For Executive Officers only - a cash bonus not to exceed together with the annual cash bonus, up to eighteen (18) monthly base salaries, in the case of the CEO, and nine (9) monthly base salaries, in the case of other Executive Officers (excluding the CEO).

 

H. Board of Directors Compensation

 

		24.	
All the Directors, excluding the Executive Chairman, shall be entitled to an equal annual and per-meeting compensation.

 

		25.	
The compensation of the Directors (including external directors and independent directors, but excluding the Executive Chairman) shall not exceed the maximum amounts provided in the Companies Regulations (Rules Regarding the Compensation and Expenses of an External Director) of 2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock Exchange Outside of Israel) of 2000, as such regulations may be amended from time to time ("Compensation of Directors Regulations").

 

		26.	
Directors may be granted equity-based compensation in accordance with the principles detailed in this Policy, and subject to the provisions of the Companies Law and the regulations thereunder.

 

		27.	
Optibase's external and independent Directors may be entitled to reimbursement of expenses in accordance with the Compensation of Directors Regulations. Optibase’s Directors, excluding external and independent Directors, may be entitled to reimbursement of work-related expenses, including meeting participation expenses, reimbursement of business travel including a daily stipend when traveling and accommodation expenses. Optibase may provide advance payments to its Directors in connection with work-related expenses.

 

I. Miscellaneous

 

		28.	
This Policy is designed solely for the benefit of Optibase. Nothing in this Compensation Policy shall be deemed to grant any of Optibase’s Executive Officers, Directors or employees or any third party any right or privilege in connection with their employment by the Company. Such rights and privileges shall be governed by the respective personal employment agreements.

 

		29.	
This Policy is subject to applicable law and is not intended, and should not be interpreted as limiting or derogating from, provisions of applicable law to the extent not permitted, nor should it be interpreted as limiting or derogating from the Company’s articles of association.

 

		30.	
This Policy is not intended to affect current agreements nor affect obligating customs (if applicable) between the Company and its Executive Officers or Directors as such may exist prior to the approval of this Compensation Policy.

 

		31.	
In the event of amendments made to the Companies Law or any regulations promulgated thereunder providing relief in connection with Optibase’s compensation to its Executive Officers and Directors, Optibase may elect to act pursuant to such relief without regard to any contradiction with this Policy.

 

		32.	
The Compensation Committee and Board may determine that none or only part of the payments, benefits and perquisites shall be granted, and is authorized to cancel or suspend a compensation package or part of it.

 

 

A - 10Exhibit 10.3

 

CYREN LTD.

NOTICE OF GRANT 

 

Cyren Ltd. (the “Company”)
has granted to the Participant an award (the “Award”) of certain units pursuant to the Cyren Ltd. 2016
Equity Incentive Plan (the “Plan”), each of which represents the right to receive on the applicable Settlement
Date one (1) share of Stock, as follows:

 

	Participant:	_______________	Employee ID:	_______________
	 	 	 	 
	Date of Grant:	_______________
	 	 
	Total Number of Units:	___________,
subject to adjustment as provided by the Restricted Stock Units Agreement.
	 	 
	Settlement Date:	Except as provided by the Restricted Stock Units Agreement, the date on which a Unit becomes a Vested Unit.
	 	 
	
        Vesting Start Date:

        
	
        _______________
	 	 
	Vested Units:	
        Except as provided in the Restricted Stock
        Units Agreement and provided that the Participant’s Service has not terminated prior to the applicable date, the number of
        Vested Units (disregarding any resulting fractional Unit) as of any date is as follows:

         

        [     ] 

         

	
        Special Terms:

         

         

         
	
        Effect of Change in Control.

         

        Notwithstanding anything to the contrary
        herein or in the Plan, in the event of a Change in Control (as defined in the Plan) transaction and the Participant’s employment
        with the Surviving Company is Involuntarily Terminated (as defined below) as a result of the Change in Control transaction and
        not otherwise for Cause, 100% of the Participant’s Award shall fully vest automatically, effective immediately prior and
        subject to the closing of the Change in Control transaction (or, if such Involuntary Termination occurs within 12 months after
        the effective date of a Change in Control transaction, the Award shall fully vest upon such termination date).

         

        In addition, to the extent that the Acquiror
        shall assume or substitute the Award in the context of the Change in Control transaction, and the Participant remains employed
        by the Surviving Company, 50% of the unvested Award shall vest automatically, effective immediately prior and subject to the closing
        of the Change in Control transaction and the remaining 50% of the unvested Award shall vest upon the earlier of the (i) one year
        anniversary of the closing of the Change in Control transaction, provided that the Participant remains employed by the Surviving
        Company as of such date, (ii) the original vesting date for such Award or (iii) an Involuntary Termination of the Participant’s
        employment not for Cause prior to such one year anniversary.

         

        In the event that the Awards under the
        Plan are not assumed, substituted or cashed-out by the Acquiror upon the closing of a Change in Control transaction, and the Acquiror
        terminates the Plan upon the closing of the Change in Control transaction, the Participant’s Award shall fully vest automatically,
        effective immediately prior and subject to the closing of the Change of Control transaction.

         

        “Involuntary
        Termination” shall mean the termination of Participant’s service by reason of:

         

        (a)
        Participant’s involuntary dismissal or discharge by the Company other than for Cause, or

         

        (b) Participant’s
        voluntary resignation following (A) a change in Participant’s position with the Company (or the applicable parent or
        subsidiary employing Participant) which materially reduces Participant’s duties and responsibilities, (B) a reduction
        in Participant’s level of compensation (including base salary, fringe benefits and target bonus under any corporate performance
        based bonus or incentive programs) by more than ten percent (10%) or (C) a relocation of Participant’s place of
        employment by more than fifty (50) kilometers, provided and only if such change, reduction or relocation is effected without
        Participant’s consent.

         

        “Surviving
        Company” shall mean the Company or any other entity controlled or under common control of the Acquiror that will
        employ the Participant following a Change in Control transaction.

         

	Superseding Agreement:	None

 

     

     

    

 

By their signatures below or by electronic
acceptance or authentication in a form authorized by the Company, the Company and the Participant agree that the Award is governed
by this Grant Notice and by the provisions of the Restricted Stock Units Agreement, annexed hereto, and the Plan, both of which
are made a part of this document, and by the Superseding Agreement, if any. The Participant acknowledges that copies of the Plan,
the Restricted Stock Units Agreement and the prospectus for the Plan are available on the Company’s internal website and
may be viewed and printed by the Participant for attachment to the Participant’s copy of this Grant Notice. The Participant
represents that the Participant has read and is familiar with the provisions of the Restricted Stock Units Agreement and the Plan,
and hereby accepts the Award subject to all of their terms and conditions.

 

	CYREN LTD.	 	PARTICIPANT
	 	 	 	 	 
	By:  	 	 	 
	 	[officer name]	 	Signature	 
	 	[officer title]	 	 
	 	 	 	Date	 
	 	 	 	 
	 	 	 	Address	 
	 	 	 	 

 

		ATTACHMENTS:	2016 Equity Incentive Plan, as amended to the Date of Grant; and Plan Prospectus

 

    2

     

    

 

CYREN LTD.

RESTRICTED STOCK UNITS AGREEMENT

(For Employees)

 

Cyren Ltd. has granted
to the Participant named in the Notice of Grant of Restricted Stock Units (the “Grant Notice”)
to which this Restricted Stock Units Agreement (the “Agreement”) is attached an Award consisting of Restricted
Stock Units (each a “Unit”) subject to the terms and conditions set forth in the Grant Notice and this
Agreement. The Award has been granted pursuant to and shall in all respects be subject to the terms conditions of the Cyren Ltd.
2016 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are
incorporated herein by reference. By signing the Grant Notice, the Participant:
(a) acknowledges receipt of and represents that the Participant
has read and is familiar with the Grant Notice, this Agreement, the Plan and a prospectus for the Plan prepared in connection with
the registration with the Securities and Exchange Commission of the shares issuable pursuant to the Award (the “Plan
Prospectus”), (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Agreement
and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon
any questions arising under the Grant Notice, this Agreement or the Plan.

 

1.Definitions
and Construction.

 

1.1 Definitions.
Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.

 

1.2 Construction.
Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision
of this Agreement. Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include
the singular. Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

2. Administration.

 

All questions of interpretation
concerning the Grant Notice, this Agreement, the Plan or any other form of agreement or other document employed by the Company
in the administration of the Plan or the Award shall be determined by the Committee. All such determinations by the Committee shall
be final, binding and conclusive upon all persons having an interest in the Award, unless fraudulent or made in bad faith. Any
and all actions, decisions and determinations taken or made by the Committee in the exercise of its discretion pursuant to the
Plan or the Award or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence)
shall be final, binding and conclusive upon all persons having an interest in the Award. Any Officer shall have the authority to
act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which
is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

 

    3

     

    

 

3. The
Award.

 

3.1 Grant
of Units. On the Date of Grant, the Participant shall acquire, subject to the provisions of this Agreement, the Total Number
of Units set forth in the Grant Notice, subject to adjustment as provided in Section 8. Each Unit represents a right to receive
on a date determined in accordance with the Grant Notice and this Agreement one (1) share of Stock.

 

3.2 No
Monetary Payment Required. The Participant is not required to make any monetary payment (other than applicable tax withholding,
if any) as a condition to receiving the Units or shares of Stock issued upon settlement of the Units, the consideration for which
shall be past services actually rendered or future services to be rendered to a Participating Company or for its benefit. Notwithstanding
the foregoing, if required by applicable law, the Participant shall furnish consideration in the form of cash or past services
rendered to a Participating Company or for its benefit having a value not less than the par value of the shares of Stock issued
upon settlement of the Units.

 

4. Vesting
of Units.

 

Units acquired pursuant
to this Agreement shall become Vested Units as provided in the Grant Notice. For purposes of determining the number of Vested Units
following an Ownership Change Event, credited Service shall include all Service with any corporation which is a Participating Company
at the time the Service is rendered, whether or not such corporation is a Participating Company both before and after the Ownership
Change Event.

 

5. Company
Reacquisition Right.

 

5.1 Grant
of Company Reacquisition Right. Except to the extent otherwise provided by the Superseding Agreement, if any, in the event
that the Participant’s Service terminates for any reason
or no reason, with or without cause, the Participant shall forfeit and the Company shall automatically reacquire all Units which
are not, as of the time of such termination, Vested Units (“Unvested Units”), and the Participant shall
not be entitled to any payment therefor (the “Company Reacquisition Right”).

 

5.2 Ownership
Change Event, Non-Cash Dividends, Distributions and Adjustments. Upon the occurrence of an Ownership Change Event, a
dividend or distribution to the stockholders of the Company paid in shares of Stock or other property, or any other adjustment
upon a change in the capital structure of the Company as described in Section 8, any and all new, substituted or additional
securities or other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend
policy) to which the Participant is entitled by reason of the Participant’s ownership of Unvested Units shall be immediately
subject to the Company Reacquisition Right and included in the terms “Units” and “Unvested Units” for all
purposes of the Company Reacquisition Right with the same force and effect as the Unvested Units immediately prior to the Ownership
Change Event, dividend, distribution or adjustment, as the case may be. For purposes of determining the number of Vested Units
following an Ownership Change Event, dividend, distribution or adjustment, credited Service shall include all Service with any
corporation which is a Participating Company at the time the Service is rendered, whether or not such corporation is a Participating
Company both before and after any such event.

 

    4

     

    

 

6. Settlement
of the Award.

 

6.1 Issuance
of Shares of Stock. Subject to the provisions of Section 6.3, the Company shall issue to the Participant on the
Settlement Date with respect to each Vested Unit to be settled on such date one (1) share of Stock. The Settlement Date with respect
to a Unit shall be the date on which such Unit becomes a Vested Unit as provided by the Grant Notice (an “Original
Settlement Date”); provided, however, that if the Original Settlement Date would occur on a date on which a sale
by the Participant of the shares to be issued in settlement of the Vested Units would violate the Trading Compliance Policy of
the Company and if the Company has allowed the Participant to satisfy its tax obligations pursuant to Section 7.2 of this Agreement,
the Settlement Date for such Vested Units shall be deferred until the next day on which the sale of such shares would not violate
the Trading Compliance Policy, but in any event on or before the 15th day of the third calendar month following calendar year of
the Original Settlement Date. Shares of Stock issued in settlement of Units shall not be subject to any restriction on transfer
other than any such restriction as may be required pursuant to Section 6.3, Section 7 or the Company’s Trading
Compliance Policy.

 

6.2 Beneficial
Ownership of Shares; Certificate Registration. The Participant hereby authorizes the Company, in its sole discretion,
to deposit any or all shares acquired by the Participant pursuant to the settlement of the Award with the Company’s transfer
agent, including any successor transfer agent, to be held in book entry form, or to deposit such shares for the benefit of the
Participant with any broker with which the Participant has an account relationship of which the Company has notice. Except as provided
by the foregoing, a certificate for the shares acquired by the Participant shall be registered in the name of the Participant,
or, if applicable, in the names of the heirs of the Participant.

 

6.3 Restrictions
on Grant of the Award and Issuance of Shares. The grant of the Award and issuance of shares of Stock upon settlement
of the Award shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such
securities. No shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation of any applicable
federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system
upon which the Stock may then be listed. The inability of the Company to obtain from any regulatory body having jurisdiction the
authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares subject to
the Award shall relieve the Company of any liability in respect of the failure to issue such shares as to which such requisite
authority shall not have been obtained. As a condition to the settlement of the Award, the Company may require the Participant
to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation
and to make any representation or warranty with respect thereto as may be requested by the Company.

 

6.4 Fractional
Shares. The Company shall not be required to issue fractional shares upon the settlement of the Award.

 

    5

     

    

 

7. Tax
Withholding.

 

7.1 In
General. At the time the Grant Notice is executed, or at any time thereafter as requested by a Participating Company, the Participant
hereby authorizes withholding from payroll and any other amounts payable to the Participant,
and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax (including
any social insurance) withholding obligations of the Participating Company, if any, which arise in connection with the Award, the
vesting of Units or the issuance of shares of Stock in settlement thereof. The Company shall have no obligation to deliver shares
of Stock until the tax withholding obligations of the Participating Company have been satisfied by the Participant.

 

7.2 Assignment
of Sale Proceeds. Subject to compliance with applicable law and the Company’s Trading Compliance Policy, if permitted
by the Company, the Participant may satisfy the Participating Company’s tax withholding obligations in accordance with procedures
established by the Company providing for delivery by the Participant to the Company or a broker approved by the Company of properly
executed instructions, in a form approved by the Company, providing for the assignment to the Company of the proceeds of a sale
with respect to some or all of the shares being acquired upon settlement of Units.

 

7.3 Withholding
in Shares. The Company shall have the right, but not the obligation, to require the Participant to satisfy all or any portion
of a Participating Company’s tax withholding obligations by deducting from the shares of Stock otherwise deliverable to the
Participant in settlement of the Award a number of whole shares having a fair market value, as determined by the Company as of
the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined
by the applicable minimum statutory withholding rates, if required to avoid liability with respect to classification of the Award
under generally accepted accounting principles in the United States.

 

7.4 THE
PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING THE AWARD OR SHARES OF STOCK
ISSUED UPON VESTING OF THE AWARD OF OR TRANSFERRING THE SHARES OF STOCK.

 

8. Adjustments
for Changes in Capital Structure.

 

Subject to any required
action by the stockholders of the Company and the requirements of Section 409A of the Code to the extent applicable, in the event
of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization,
reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment
of a dividend or distribution to the stockholders of the Company in a form other than Stock (other than regular, periodic cash
dividends paid on Stock pursuant to the Company’s dividend policy) that has a material effect on the Fair Market Value of
shares of Stock, appropriate and proportionate adjustments shall be made in the number of Units subject to the Award and/or the
number and kind of shares or other property to be issued in settlement of the Award, in order to prevent dilution or enlargement
of the Participant’s rights under the Award. For purposes of the foregoing, conversion of any convertible securities of the
Company shall not be treated as “effected without receipt of consideration by the Company.” Any and all new, substituted
or additional securities or other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy) to which the Participant is entitled by reason of ownership of Units acquired pursuant to this Award will be immediately
subject to the provisions of this Award on the same basis as all Units originally acquired hereunder. Any fractional Unit or share
resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number. Such adjustments shall
be determined by the Committee, and its determination shall be final, binding and conclusive.

 

    6

     

    

 

9. Rights
as a Stockholder, Director, Employee or Consultant.

 

The Participant
shall have no rights as a stockholder with respect to any shares which may be issued in settlement of this Award until the date
of the issuance of such shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior
to the date the shares are issued, except as provided in Section 8. If the Participant is an Employee, the Participant understands
and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company
and the Participant, the Participant’s employment is “at
will” and is for no specified term. Nothing in this Agreement shall confer upon the Participant
any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company
Group to terminate the Participant’s Service at any time.

 

10. Legends.

 

The Company may at any
time place legends referencing any applicable federal, state or foreign securities law restrictions on all certificates representing
shares of stock issued pursuant to this Agreement. The Participant
shall, at the request of the Company, promptly present to the Company any and all certificates representing shares acquired pursuant
to this Award in the possession of the Participant in order to
carry out the provisions of this Section.

 

11. Compliance
with Section 409A.

 

It is intended that any
election, payment or benefit which is made or provided pursuant to or in connection with this Award that may result in Section
409A Deferred Compensation shall comply in all respects with the applicable requirements of Section 409A (including applicable
regulations or other administrative guidance thereunder, as determined by the Committee in good faith) to avoid the unfavorable
tax consequences provided therein for non-compliance. In connection with effecting such compliance with Section 409A, the following
shall apply:

 

11.1 Separation
from Service; Required Delay in Payment to Specified Employee. Notwithstanding anything set forth herein to the contrary, no
amount payable pursuant to this Agreement on account of the Participant’s termination of Service which constitutes a “deferral
of compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the Code (the “Section
409A Regulations”) shall be paid unless and until the Participant has incurred a “separation from service”
within the meaning of the Section 409A Regulations. Furthermore, to the extent that the Participant is a “specified employee”
within the meaning of the Section 409A Regulations as of the date of the Participant’s separation from service, no amount
that constitutes a deferral of compensation which is payable on account of the Participant’s separation from service shall
be paid to the Participant before the date (the “Delayed Payment Date”) which is first day of the seventh
month after the date of the Participant’s separation from service or, if earlier, the date of the Participant’s death
following such separation from service. All such amounts that would, but for this Section, become payable prior to the Delayed
Payment Date will be accumulated and paid on the Delayed Payment Date.

 

    7

     

    

 

11.2 Other
Changes in Time of Payment. Neither the Participant nor the Company shall take any action to accelerate or delay the payment
of any benefits under this Agreement in any manner which would not be in compliance with the Section 409A Regulations.

 

11.3 Amendments
to Comply with Section 409A; Indemnification. Notwithstanding any other provision of this Agreement to the contrary, the Company
is authorized to amend this Agreement, to void or amend any election made by the Participant under this Agreement and/or to delay
the payment of any monies and/or provision of any benefits in such manner as may be determined by the Company, in its discretion,
to be necessary or appropriate to comply with the Section 409A Regulations without prior notice to or consent of the Participant.
The Participant hereby releases and holds harmless the Company, its directors, officers and stockholders from any and all claims
that may arise from or relate to any tax liability, penalties, interest, costs, fees or other liability incurred by the Participant
in connection with the Award, including as a result of the application of Section 409A.

 

11.4 Advice
of Independent Tax Advisor. The Company has not obtained a tax ruling or other confirmation from the Internal Revenue Service
with regard to the application of Section 409A to the Award, and the Company does not represent or warrant that this Agreement
will avoid adverse tax consequences to the Participant, including as a result of the application of Section 409A to the Award.
The Participant hereby acknowledges that he or she has been advised to seek the advice of his or her own independent tax advisor
prior to entering into this Agreement and is not relying upon any representations of the Company or any of its agents as to the
effect of or the advisability of entering into this Agreement.

 

12. Miscellaneous
Provisions.

 

12.1 Termination
or Amendment. The Committee may terminate or amend the Plan or this Agreement at any time; provided, however, that except as
provided in the Grant Notice in connection with a Change in Control, if applicable, no such termination or amendment may have a
materially adverse effect on the Participant’s rights under this Agreement without the consent of the Participant
unless such termination or amendment is necessary to comply with applicable law or government regulation, including, but not limited
to, Section 409A. No amendment or addition to this Agreement shall be effective unless in writing.

 

12.2 Nontransferability
of the Award. Prior to the issuance of shares of Stock on the applicable Settlement Date, neither this Award nor any Units
subject to this Award shall be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary, except transfer by will or
by the laws of descent and distribution. All rights with respect to the Award shall be exercisable during the Participant’s
lifetime only by the Participant or the Participant’s guardian or legal representative.

 

    8

     

    

 

12.3 Further
Instruments. The parties hereto agree to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Agreement.

 

12.4 Binding
Effect. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions
on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors
and assigns.

 

12.5 Delivery
of Documents and Notices. Any document relating to participation in the Plan or any notice required or permitted hereunder
shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness
only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for
the Participant by a Participating Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or
certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other
party at the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing
from time to time to the other party.

 

(a) Description
of Electronic Delivery. The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice,
this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may
be delivered to the Participant electronically. In addition, if permitted by the Company, the Participant may deliver electronically
the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time
to time. Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet
or the Internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other
means of electronic delivery specified by the Company.

 

(b) Consent
to Electronic Delivery. The Participant acknowledges that the Participant has read Section 12.5(a) of this Agreement
and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of the Grant Notice,
as described in Section 12.5(a). The Participant acknowledges that he or she may receive from the Company a paper copy of
any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing. The
Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, the Participant understands that the Participant must provide the Company or any designated
third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails. The
Participant may revoke his or her consent to the electronic delivery of documents described in Section 12.5(a) or may change
the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address)
at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic
mail. Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described
in Section 12.5(a).

 

12.6 Integrated
Agreement. The Grant Notice, this Agreement and the Plan, together with the Superseding Agreement, if any, shall constitute
the entire understanding and agreement of the Participant and the
Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements,
understandings, restrictions, representations, or warranties among the Participant
and the Participating Company Group with respect to such subject matter. To the extent contemplated herein or therein, the provisions
of the Grant Notice, this Agreement and the Plan shall survive any settlement of the Award and shall remain in full force and effect.

 

12.7 Applicable
Law. This Agreement shall be governed by the laws of the State of Delaware as such laws are applied to agreements between Delaware
residents entered into and to be performed entirely within the State of Delaware.

 

12.8 Counterparts.
The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

*     *     *

 

 

9

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