Document:

20-F

Exhibit 4.14  

Modification Agreement 

This  Modification  Agreement  is
 made  and  entered  into on the 28 day of  January  2008  between  UB Precision Co.,
Ltd. (“Purchaser”) and Elbit Vision Systems Ltd. (“Seller”). 

WITNESSETH 

Whereas Purchaser and Seller are
parties to the certain agreement entitled as STOCK AND LOAN PURCHASE AGREEMENT
(“Prior Agreement”) and dated the 1st day of December 2006; and 

Whereas Purchaser and Seller agree to
modify the Prior Agreement to reflect the related circumstances which occurred after the
Prior Agreement. 

NOW THEREFORE, the parties agree as
follows: 

	Article 1 	 	
Principal Amount for Loan  

        The
Principal Amount for Loan mentioned in Article 2 of the Prior Agreement shall be reduced
from US$800,000 to a total amount of US$460,000. The reduced amount of US$340,000 shall be
regarded as curtailed without leaving any other obligation from the original Principal
Amount for Loan (US$800,000), other than as set forth herein, as of the execution date of
this Modification Agreement. 

	Article 2  	 	
Payment of the reduced Principal Amount for Loan  

        2-1
Purchaser shall make a payment for US$360,000 within two weeks from the execution date of
this Modification Agreement by wire transfer to the Seller’s bank account in Bank
__________, SWIFT: ___________ account: ___________ branch _____ in the name of Elbit
Vision Systems Ltd. (the “Bank Account”).  

        2-2
Purchaser shall pay the Seller the remaining amount of US$100,000 within one (1) year from
the execution date of this Modification Agreement (the “Final Payment Date”) by
wire transfer to the Bank Account, or to such other bank account as the Seller shall
notify the Purchaser prior to the Final Payment Date. To guarantee the payment of
US$100,000, Purchaser shall deliver to the Seller upon execution of this Modification
Agreement, a bank guarantee in the amount of US$100,000 in a form acceptable to Seller. 

        2-3
Seller waives its right in the bank guarantees from Hana Bank Seoul issued in accordance
with Article 4.3 of the Prior Agreement. 

	 	i)	       Transaction Reference Number
___________ in the amount of US$400,000. 

	 	ii)	         Transaction Reference Number
___________ in the amount of US$400,000.  

        2-4
Seller and Purchaser shall take the necessary actions with the related banks to cancel the
bank guarantees mentioned in Paragraph 2-3 of this Article immediately following the
payment set forth under Paragraph 2-1 of this Article. 

	Article 3  	 	
Purchase Price for Shares  

        3-1
Seller waives its right to receive any further payment or rights to payments in regard to
the Purchase Price for Shares mentioned Article 2 of the Prior Agreement with the
exception of the right to receive an additional installment of US$475,000 in final
consideration. 

        3-2
The bank guarantee issued for the Purchase Price for Shares under the Prior Agreement will
be maintained as effective only for the amount of US$475,000. 

	Article 4  	 	
Employee Retention Agreement  

        The
Employee Retention Agreement made and entered into between Seller and Purchase on the 1st
day of December 2006 shall be terminated as of the execution date of this Modification
Agreement without leaving any right or obligation to the other party in regard to the
Agreement.  

IN WITNESS WHEREOF, Seller and
Purchaser have caused this Modification Agreement to be executed by their duly authorized
representatives in original copies as of the date first above written 

	Purchaser: UB Precision
Co., Ltd. 

By
——————————————

Name:
Title:

	Seller: Elbit Vision Systems Ltd.

By
——————————————

Name: David Gal           Yaron Menashe

Title:       CEO                            CFO20-F

Exhibit 10.1  

CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statements on Form
F-1 (File No’s 333-115095 and 333-145005), Form F-3 (File No’s 333-134591 and
333-114153) and on Form S-8 (File No. 333-12456) of our report dated March 31,
2008, relating
to the consolidated financial statements of Elbit Vision Systems Ltd. included in this Annual Report
on Form 20-F for the year ended December 31, 2007.

Brightman Almagor & Co.

A Member of Deloitte Touche Tohmatsu

Tel-Aviv, Israel

March 31, 200820-F

Exhibit 4.5  

STARLIMS TECHNOLOGIES LTD.

2007 RESTRICTED STOCK UNIT PLAN

STARLIMS
Technologies Ltd., an Israeli corporation (the “Company”), has adopted the
STARLIMS Technologies Ltd. 2007 Restricted Stock Unit Plan (the “Plan”) for the
benefit of non-employee directors of the Company, officers and eligible
employees and consultants of the Company and any Subsidiaries and Affiliates
(as each term is defined below), as follows:

ARTICLE I.

ESTABLISHMENT; PURPOSES; AND DURATION

1.1.           Establishment
of the Plan. The Company hereby establishes this incentive compensation
plan to be known as the “STARLIMS Technologies Ltd. 2007 Restricted Stock Unit Plan,” as set forth in this
document. The Plan permits the grant of Restricted Stock Units. The Plan was
adopted by the Board of Directors (as defined below) on August 20, 2007,
subject to any time limitation placed on the effectiveness of the Plan by any
regulatory agency or other governmental body. The Plan shall become effective
as of the date all such limitations are removed (the “Effective Date”). The
Plan shall remain in effect as provided in Section 1.3.

1.2.           Purposes
of the Plan. The purposes of the Plan are to provide additional incentives
to non-employee directors of the Company and to those officers, employees and
consultants of the Company, its Subsidiaries and Affiliates whose substantial
contributions are essential to the continued growth and success of the business
of the Company and the Subsidiaries and Affiliates, in order to strengthen
their commitment to the Company and the Subsidiaries and Affiliates, and to
attract and retain competent and dedicated individuals whose efforts will
result in the long-term growth and profitability of the Company and to further
align the interests of such non-employee directors, officers, employees and
consultants with the interests of the shareholders of the Company. To
accomplish such purposes, the Plan provides that the Company may grant
Restricted Stock Units.

1.3.           Duration
of the Plan. The Plan shall commence on the Effective Date, as described in
Section 1.1, and shall remain in effect, subject to the right of the Board of
Directors to amend or terminate the plan at any time pursuant to Article X,
until all Shares subject to it shall have been delivered, and any restrictions
on such shares have lapsed, pursuant to the Plan’s provisions. However, in no
event may an Award be granted under the Plan on or after ten years from the
Effective Date.

1

ARTICLE II

DEFINITIONS

Whenever used
in the Plan, the following terms shall have the meanings set forth below, and
when the meaning is intended, the initial letter of the word shall be
capitalized:

2.1.           “Affiliate”
means any entity other than the Company and any Subsidiary that is affiliated
with the Company through stock or equity ownership or otherwise and is
designated as an Affiliate for purposes of the Plan by the Committee.

2.2.           “Assumed”
means that pursuant to a transaction resulting in a Change of Control, either
(a) the Award is expressly affirmed by the Company or (b) the contractual obligations
represented by the Award are expressly assumed (and not simply by operation of
law) by the surviving or successor corporation or entity to the Company, or any
parent or subsidiary of either thereof, or any other corporation or entity that
is a party to the transaction resulting in the Change of Control, in connection
with such Change of Control, with appropriate adjustments to the number and
kind of securities of such surviving or successor corporation or entity, or
such other applicable parent, subsidiary, corporation or entity, subject to the
Award, which preserves the compensation element of the Award existing at the
time of such Change of Control transaction, and provides for subsequent payout
in accordance with the same (or more favorable) payment and vesting schedule
applicable to such Award, as determined in accordance with the instruments
evidencing the agreement to assume the Award. The determination of Award
comparability for this purpose shall be made by the Committee, and its
determination shall be final, binding and conclusive.

2.3.           “Award”
means a grant under the Plan of Restricted Stock Units.

2.4.           “Award
Agreement” means either:

	
 

	
 

	
 

	
(a)           a
  written agreement entered into by the Company and a Participant setting forth
  the terms and provisions applicable to an Award granted under the Plan, or 

	
 

	
 

	
 

	
(b)           a
  written or electronic statement issued by the Company to a Participant
  describing the terms and provisions of such Award, including any amendment or
  modification thereof. 

                 The
Committee may provide for the use of electronic, internet or other non-paper
Award Agreements, and the use of electronic, internet or other non-paper means
for the acceptance thereof and actions thereunder by a Participant.

2.5.           “Beneficial
Ownership” (including correlative terms) shall have the meaning given such
term in Rule 13d-3 promulgated under the Exchange Act. 

2.6.           “Board”
or “Board of Directors” means the Board of Directors of the Company.

2.7.           “Change
of Control” means the occurrence of any of the following:

                  (a)          
an acquisition in one transaction or a series of related transactions (other
than directly from the Company or pursuant to Awards granted under the Plan or
compensatory options or other similar awards granted by the Company) by any
Person of any Voting Securities of the Company, immediately after which such
Person has Beneficial
Ownership of fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding Voting Securities; provided, however, that in determining
whether a Change of Control has occurred pursuant to this Section 2.7(a),
Voting Securities of the Company which are acquired in a Non-Control
Acquisition shall not constitute an acquisition that would cause a Change of
Control; or

2

                  (b)          
the consummation of any merger, consolidation, recapitalization or
reorganization involving the Company unless:

	
 

	
 

	
 

	
                (i)          
  the shareholders of the Company, immediately before such merger,
  consolidation, recapitalization or reorganization, own, directly or
  indirectly, immediately following such merger, consolidation,
  recapitalization or reorganization, more than fifty percent (50%) of the
  combined voting power of the outstanding Voting Securities of the corporation
  resulting from such merger or consolidation or reorganization (the “Company
  Surviving Corporation”) in substantially the same proportion as their
  ownership of the Voting Securities of the Company immediately before such
  merger, consolidation, recapitalization or reorganization; and

	
 

	
 

	
 

	
                (ii)          
  the individuals who were members of the Board immediately prior to the
  execution of the agreement providing for such merger, consolidation,
  recapitalization or reorganization constitute at least a majority of the
  members of the board of directors of the Company Surviving Corporation, or a
  corporation Beneficially Owning, directly or indirectly, a majority of the
  voting securities of the Company Surviving Corporation, and

	
 

	
 

	
 

	
                (iii)          
  no Person, other than (A) the Company, (B) any Related Entity, (C) any
  employee benefit plan (or any trust forming a part thereof) that, immediately
  prior to such merger, consolidation, recapitalization or reorganization, was
  maintained by the Company, the Company Surviving Corporation, or any Related
  Entity or (D) any Person who, together with its Affiliates, immediately prior
  to such merger, consolidation, recapitalization or reorganization had
  Beneficial Ownership of fifty percent (50%) or more of the then outstanding
  Voting Securities of the Company, owns, together with its Affiliates,
  Beneficial Ownership of fifty percent (50%) or more of the combined voting
  power of the Company Surviving Corporation’s then outstanding Voting
  Securities (a transaction described in clauses (b)(i) through this clause
  (b)(iii) is referred to herein as a “Non-Control Transaction”); or 

                  (c)          
any sale, lease, exchange, transfer or other disposition (in one transaction or
a series of related transactions) of all or substantially all of the assets or
business of the Company to any Person (other than (A) a transfer or
distribution to a Related Entity, or (B) a transfer or distribution to the
Company’s shareholders of the stock of a Related Entity or any other assets). 

3

                 Notwithstanding
the foregoing, a Change of Control shall not be deemed to occur solely because
any Person (the “Subject Person”) acquired Beneficial Ownership of fifty
percent (50%) or more of the combined voting power of the then outstanding
Voting Securities of the Company as a result of the acquisition of Voting
Securities of the Company by the Company which, by reducing the number of
Voting Securities of the Company then outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Persons, provided that if a
Change of Control would occur (but for the operation of this sentence) as a
result of the acquisition of Voting Securities by the Company and (1) before
such share acquisition by the Company the Subject Person becomes the Beneficial
Owner of any new or additional Voting Securities of the Company in a related
transaction or (2) after such share acquisition by the Company the Subject
Person becomes the Beneficial Owner of any new or additional Voting Securities
of the Company which in either case increases the percentage of the then
outstanding Voting Securities of the Company Beneficially Owned by the Subject
Person, then a Change of Control shall be deemed to occur.

                 Solely
for purposes of this Section 2.7, (1) “Affiliate” shall mean, with respect to
any Person, any other Person that, directly or indirectly, controls, is
controlled by, or is under common control with, such Person, and (2) “control”
(including with correlative meanings, the terms “controlling,” “controlled by”
and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of that Person, whether through the
ownership of voting securities or by contract or otherwise. Any Relative (for
this purpose, “Relative” means a spouse, child, parent, parent of spouse,
sibling or grandchild) of an individual shall be deemed to be an Affiliate of
such individual for this purpose. None of the Company or any Person controlled
by the Company shall be deemed to be an Affiliate of any holder of Shares.

2.8.           “Committee”
means the committee of the Board of Directors, or a subcommittee thereof,
designated by the Board to administer the Plan.

2.9.           “Consultant”
means an independent contractor who performs services for the Company or a
Subsidiary or Affiliate in a capacity other than as an Employee or Director.

2.10.         “Director”
means any individual who is a member of the Board of Directors of the Company.

2.11.         “Effective
Date” shall have the meaning ascribed to such term in Section 1.1.

2.12.         “Employee”
means any person designated as an employee of the Company, a Subsidiary and/or
an Affiliate on the payroll records thereof. As further provided in Section
13.4, for purposes of the Plan, upon approval by the Committee, the term
Employee may also include Employees whose employment with the Company, a
Subsidiary or an Affiliate has been terminated subsequent to being granted an
Award under the Plan. For the avoidance of doubt, a Director who would otherwise
be an “Employee”
within the meaning of this Section 2.12 shall be considered an Employee for
purposes of the Plan.

4

2.13.         “Exchange
Act” means the Securities Exchange Act of 1934, as it may be amended from
time to time, including the rules and regulations promulgated thereunder and
successor provisions and rules and regulations thereto.

2.14.         “Fiscal
Year” means the calendar year, or such other consecutive twelve-month
period as the Committee may select.

 2.15.         “Non-Control Acquisition” means
an acquisition (whether by merger, stock purchase, asset purchase or otherwise)
by (a) an employee benefit plan (or a trust forming a part thereof) maintained
by (i) the Company or (ii) any corporation or other Person of which fifty
percent (50%) or more of its total value or total voting power of its Voting
Securities or equity interests is owned, directly or indirectly, by the Company
(a “Related Entity”); (b) the Company or any Related Entity; (c) any Person in
connection with a Non-Control Transaction; or (d) any Person that owns,
together with its Affiliates, Beneficial Ownership of fifty percent (50%) or
more of the outstanding Voting Securities of the Company on the Effective Date.

2.16.         “Non-Employee
Director” means a Director who is not an Employee.

2.17.         “Participant”
means any eligible individual as set forth in Article V who holds one or more
outstanding Awards.

2.18.         “Period
of Restriction” means the period during which Restricted Stock Units are
subject to a substantial risk of forfeiture.

2.19.         “Person”
means “person” as such term is used for purposes of Section 13(d) or 14(d) of
the Exchange Act, including any individual, corporation, limited liability
company, partnership, trust, unincorporated organization, government or any
agency or political subdivision thereof, or any other entity or any group of
persons.

2.20.         “Restricted
Stock Unit” means an Award, whose value is equal to a Share, granted to a
Participant pursuant to Article VI.

2.21.         “Rule
16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the
same may be amended from time to time.

2.22.         “Securities
Act” means the Securities Act of 1933, as it may be amended from time to
time, including the rules and regulations promulgated thereunder and successor
provisions and rules and regulations thereto.

2.23.         “Share”
means an Ordinary Share, par value one (1) New Israeli Shekel (NIS 1.0) per
share, of the Company (including any new, additional or different stock or
securities resulting from any change in corporate capitalization as listed in
Section 4.2).

5

2.24.         “Subsidiary”
means any present or future corporation which is or would be a “subsidiary
corporation” of the Company as determined by the Committee.

2.25.         “Substitute
Awards” means Awards granted by the Company in assumption of, or in
substitution or exchange for other awards previously granted, or the right or
obligation to grant other awards, by a company acquired by the Company, a
Subsidiary and/or an Affiliate or with which the Company, a Subsidiary and/or
an Affiliate combines, or otherwise in connection with any merger,
consolidation, acquisition of property or stock, or reorganization involving
the Company, a Subsidiary or an Affiliate.

2.26.         “Termination”
means the time when a Participant ceases the performance of services for the
Company, any Affiliate or Subsidiary, as applicable, for any reason, with or
without cause (as “cause” may be defined in such Participant’s Award
Agreement), including a Termination by resignation, discharge, death,
disability or retirement, but excluding (a) a Termination where there is a
simultaneous reemployment (or commencement of service) or continuing employment
(or service) of a Participant by the Company, Affiliate or any Subsidiary, (b)
at the discretion of the Committee, a Termination that results in a temporary
severance, and (c) at the discretion of the Committee, a Termination of an
Employee that is immediately followed by the Participant’s service as a
Non-Employee Director.

2.27.         “Voting
Securities” shall mean, with respect to any Person that is a corporation,
all outstanding voting securities of such Person entitled to vote generally in
the election of the board of directors of such Person.

ARTICLE III.

ADMINISTRATION

3.1.           General.
The Committee shall have exclusive authority to operate, manage and administer
the Plan in accordance with its terms and conditions. Notwithstanding the
foregoing, in its absolute discretion, the Board may at any time and from time
to time exercise any and all rights, duties and responsibilities of the Committee
under the Plan, including establishing procedures to be followed by the
Committee, but excluding matters which under any applicable law, regulation or
rule, including any exemptive rule under Section 16 of the Exchange Act
(including Rule 16b-3), are required to be determined in the sole discretion of
the Committee. If and to the extent that the Committee does not exist or cannot
function, the Board may take any action under the Plan that would otherwise be
the responsibility of the Committee, subject to the limitations set forth in
the immediately preceding sentence.

3.2.           Committee.
The members of the Committee shall be appointed from time to time by, and shall
serve at the discretion of, the Board of Directors.

6

3.3.           Authority
of the Committee. The Committee shall have full discretionary authority to
grant or, when so restricted by applicable law, recommend the Board to grant,
pursuant to the terms of the Plan, Awards to those individuals who are eligible
to receive Awards
under the Plan. Except as limited by law or by the Articles of Association of
the Company, and subject to the provisions herein, the Committee shall have
full power, in accordance with the other terms and provisions of the Plan, to:

	
 

	
 

	
 

	
(a)           select
  Employees, Non-Employee Directors and Consultants who may receive Awards
  under the Plan and become Participants; 

	
 

	
 

	
 

	
(b)          
  determine eligibility for participation in the Plan and decide all questions
  concerning eligibility for, and the amount of, Awards under the Plan; 

	
 

	
 

	
 

	
(c)           determine
  the sizes and types of Awards; 

	
 

	
 

	
 

	
(d)           grant
  Substitute Awards on such terms and conditions as the Committee may
  prescribe; 

	
 

	
 

	
 

	
(e)           make all
  determinations under the Plan concerning Termination of any Participant’s
  employment or service with the Company or a Subsidiary or Affiliate,
  including whether such Termination occurs by reason of cause, good reason,
  disability, retirement or in connection with a Change of Control and whether
  a leave constitutes a Termination; 

	
 

	
 

	
 

	
(f)           construe
  and interpret the Plan and any agreement or instrument entered into under the
  Plan, including any Award Agreement; 

	
 

	
 

	
 

	
(g)          
  establish and administer any terms, conditions, restrictions, limitations,
  forfeiture, vesting or exercise schedule, and other provisions of or relating
  to any Award; 

	
 

	
 

	
 

	
(h)          
  establish and administer any conditions to which Awards are subject and
  determine the extent to which such conditions are attained or are not
  attained; 

	
 

	
 

	
 

	
(i)           construe
  any ambiguous provisions, correct any defects, supply any omissions and
  reconcile any inconsistencies in the Plan and/or any Award Agreement or any
  other instrument relating to any Awards; 

	
 

	
 

	
 

	
(j)          
  establish, adopt, amend, waive and/or rescind rules, regulations, procedures,
  guidelines, forms and/or instruments for the Plan’s operation or
  administration; 

	
 

	
 

	
 

	
(k)           make all
  valuation determinations relating to Awards and the payment or settlement
  thereof; 

	
 

	
 

	
 

	
(l)           grant
  waivers of terms, conditions, restrictions and limitations under the Plan or
  applicable to any Award, or accelerate the vesting or exercisability of any
  Award; 

7

	
 

	
 

	
 

	
(m)           subject
  to the provisions of Article X, amend or adjust the terms and conditions of
  any outstanding Award and/or adjust the number and/or class of shares of
  stock subject to any outstanding Award; 

	
 

	
 

	
 

	
(n)           at any
  time and from time to time after the granting of an Award, specify such
  additional terms, conditions and restrictions with respect to such Award as
  may be deemed necessary or appropriate to ensure compliance with any and all
  applicable laws or rules, including terms, restrictions and conditions for
  compliance with applicable securities laws or listing rules, methods of
  withholding or providing for the payment of required taxes; 

	
 

	
 

	
 

	
(o)           offer to
  buy out an Award previously granted, based on such terms and conditions as
  the Committee shall establish with and communicate to the Participant at the
  time such offer is made; 

	
 

	
 

	
 

	
(p)          
  determine whether, and to what extent and under what circumstances Awards may
  be canceled or suspended; and 

	
 

	
 

	
 

	
(q)           exercise
  all such other authorities, take all such other actions and make all such
  other determinations as it deems necessary or advisable for the proper
  operation and/or administration of the Plan. 

3.4.           Award
Agreements. The Committee shall, subject to applicable laws and rules,
determine the date an Award is granted. Each Award shall be evidenced by an
Award Agreement; however, two or more Awards granted to a single Participant
may be combined in a single Award Agreement. An Award Agreement shall not be a
precondition to the granting of an Award, provided, however, that (a) the
Committee may, but need not, require as a condition to any Award Agreement’s
effectiveness, that such Award Agreement be executed on behalf of the Company
and/or by the Participant to whom the Award evidenced thereby shall have been
granted (including by electronic signature or other electronic indication of
acceptance), and such executed Award Agreement be delivered to the Company, and
(b) no person shall have any rights under any Award unless and until the
Participant to whom such Award shall have been granted has complied with the
applicable terms and conditions of the Award. The Committee shall prescribe the
form of all Award Agreements, and, subject to the terms and conditions of the
Plan, shall determine the content of all Award Agreements. Any Award Agreement
may be supplemented or amended in writing from time to time as approved by the
Committee, provided that the terms and conditions of any such Award Agreement
as supplemented or amended are not inconsistent with the provisions of the
Plan. In the event of any dispute or discrepancy concerning the terms of an
Award, the records of the Committee or its designee shall be determinative.

8

3.5.           Discretionary
Authority; Decisions Binding. The Committee shall have full discretionary
authority in all matters related to the discharge of its responsibilities and
the exercise of its authority under the Plan. All determinations, decisions,
actions and interpretations by the Committee with respect to the Plan and any
Award Agreement, and all related
orders and resolutions of the Committee shall be final, conclusive and binding
on all Participants, the Company and its shareholders, any Subsidiary or Affiliate
and all persons having or claiming to have any right or interest in or under
the Plan and/or any Award Agreement. The Committee shall consider such factors
as it deems relevant to making or taking such decisions, determinations,
actions and interpretations, including the recommendations or advice of any
Director or officer or employee of the Company, any director, officer or
employee of a Subsidiary or Affiliate and such attorneys, consultants and
accountants as the Committee may select. A Participant or other holder of an
Award may contest a decision or action by the Committee with respect to such
person or Award only on the grounds that such decision or action was arbitrary
or capricious or was unlawful, and any review of such decision or action shall be
limited to determining whether the Committee’s decision or action was arbitrary
or capricious or was unlawful.

3.6.           Attorneys
and Consultants. The Committee may consult with counsel who may be counsel
to the Company. The Committee may, with the approval of the Board, employ such
other attorneys and/or consultants, accountants, appraisers, brokers, agents
and other persons, any of whom may be an Employee, as the Committee deems
necessary or appropriate. The Committee, the Company and its officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons. The Committee shall not incur any liability for any action taken in
good faith in reliance upon the advice of such counsel or other persons.

3.7.           Delegation
of Administration. Except to the extent prohibited by applicable law,
including any applicable exemptive rule under Section 16 of the Exchange Act
(including Rule 16b-3), or the applicable rules of a stock exchange, the
Committee may, in its discretion, allocate all or any portion of its
responsibilities and powers under this Article III to any one or more of its
members and/or delegate all or any part of its responsibilities and powers
under this Article III to any person or persons selected by it; provided, however,
that the Committee may not delegate its authority to correct defects, omissions
or inconsistencies in the Plan. Any such authority delegated or allocated by
the Committee under this Section 3.7 shall be exercised in accordance with the
terms and conditions of the Plan and any rules, regulations or administrative
guidelines that may from time to time be established by the Committee, and any
such allocation or delegation may be revoked by the Committee at any time.

ARTICLE IV.

SHARES SUBJECT TO THE PLAN

4.1.           Number
of Shares Available for Grants. The shares of stock subject to Awards
granted under the Plan shall be Shares. Such Shares subject to the Plan may be
either authorized and unissued Shares or previously issued Shares acquired by
the Company or any Subsidiary. Subject to adjustment as provided in Section
4.2, the total number of Shares that may be delivered pursuant to Awards under
the Plan shall be 240,000 Shares.

                 If
any Shares are subject to any Award which is forfeited, or if any Award
otherwise terminates without the issuance of such Shares, the Shares subject to
such Award shall,
to the extent of any such termination, cancellation or forfeiture, be available
for delivery in connection with future Awards under the Plan.

9

4.2.           Adjustments
in Authorized Shares. In the event of any reclassification,
recapitalization, merger or consolidation (other than if resulting in a Change
of Control), reorganization, stock dividend or other distribution in securities
of the Company, stock split or reverse stock split, combination or exchange of
shares, repurchase of shares, or other like change in corporate structure, that
proportionally apply to all shares of the Company, the Committee, shall
substitute or adjust, as applicable, the number, class and kind of securities
which may be delivered under Section 4.1; the number, class and kind, of
securities subject to outstanding Awards; and other value determinations
applicable to outstanding Awards, as determined by the Committee, in order to
prevent dilution or enlargement of Participants’ rights under the Plan;
provided, however, that the number of Shares subject to any Award shall always
be a whole number. All determinations of the Committee as to adjustments or
changes, if any, under this Section 4.2 shall be conclusive and binding on the
Participants.

4.3.           No
Limitation on Corporate Actions. The existence of the Plan and any Awards
granted hereunder shall not affect in any way the right or power of the
Company, any Subsidiary or any Affiliate to make or authorize any adjustment,
recapitalization, reorganization or other change in its capital structure or
business structure, any merger or consolidation, any issuance of debt,
preferred or prior preference stock ahead of or affecting the Shares, additional
shares of capital stock or other securities or subscription rights thereto, any
dissolution or liquidation, any sale or transfer of all or part of its assets
or business or any other corporate act or proceeding.

ARTICLE V.

ELIGIBILITY AND PARTICIPATION

5.1.           Eligibility.
Employees, Non-Employee Directors and Consultants shall be eligible to become
Participants and receive Awards in accordance with the terms and conditions of
the Plan.

5.2.           Actual
Participation. Subject to the provisions of the Plan, the Committee may,
from time to time, select Participants from all eligible Employees,
Non-Employee Directors and Consultants and shall determine the amount of each
Award.

ARTICLE VI.

RESTRICTED STOCK UNITS

6.1.           Awards
of Grants. Subject to the terms and provisions of the Plan, the Committee, at
any time and from time to time, may grant Awards in such amounts as the
Committee shall determine. Subject to the terms and conditions of this Article
VI and the Award Agreement, upon grant of Restricted Stock Units to Participants,
no Shares shall actually be awarded to a Participant who is granted Restricted
Stock Units on the date of grant, and such Participant shall have no rights of
a shareholder with respect to such Restricted Stock Units.

10

6.2.           Award
Agreement. Each Award shall be evidenced by an Award Agreement that shall
specify the Period of Restriction, the number of Restricted Stock Units
granted, and such other provisions as the Committee shall determine in
accordance with the Plan.

6.3.           Period
of Restriction and Other Restrictions. The Period of Restriction shall
lapse based on continuing service as a Non-Employee Director or Consultant or
continuing employment with the Company, a Subsidiary or an Affiliate, the
satisfaction of other conditions or restrictions or upon the occurrence of
other events, in each case, as determined by the Committee, in its discretion,
and as stated in the Award Agreement.

6.4.           Payment
of Restricted Stock Units. Subject to Section 13.7, after the last day of
the Period of Restriction applicable to a Participant’s Restricted Stock Units,
and provided all conditions and restrictions applicable to Restricted Stock
Units, if any, have been satisfied or lapse (including satisfaction of any
applicable tax withholding obligations) pursuant to the applicable Award
Agreement, such Restricted Stock Units shall be settled by delivery of Shares.

6.5.           Termination
of Employment or Service. Except as otherwise provided in this Section 6.5,
during the Period of Restriction, any Award held by a Participant shall be
forfeited and revert to the Company upon the Participant’s Termination or the
failure to meet or satisfy any conditions and restrictions to the extent set
forth in the applicable Award Agreement. Each applicable Award Agreement shall
set forth the extent to which, if any, the Participant shall have the right to
retain the Award following such Participant’s Termination. Such provisions
shall be determined in the sole discretion of the Committee, shall be included
in the applicable Award Agreement, need not be uniform among all such Awards
issued pursuant to the Plan, and may reflect distinctions based on the reasons
for, or circumstances of, such Termination.

ARTICLE VII.

TRANSFERABILITY OF AWARDS; BENEFICIARY DESIGNATION

7.1.           Non-Transferability
of Awards. Except as otherwise provided in this Article VII or a
Participant’s Award Agreement or otherwise determined at any time by the
Committee, no Award granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated by a Participant (or his or
her beneficiary). Any purported assignment, transfer or encumbrance of an Award
contrary to this Article VII shall be void and unenforceable against the
Company.

7.2.           Beneficiary
Designation. Each Participant may, from time to time, name any beneficiary
or beneficiaries to whom any Shares under the Plan are to be delivered in case
of the Participant’s death before he or she fully receives any or all of such
Shares. Each such designation shall revoke all prior designations by the same
Participant, shall be in a form prescribed by the Company, and will be
effective only when filed by the Participant in writing with the Company during
the Participant’s lifetime. In the absence of any such beneficiary designation,
Shares due but remaining unissued to such Participant at
the Participant’s death, shall be paid as designated by the Participant by will
or by the laws of descent and distribution.

11

ARTICLE VIII.

RIGHTS OF PARTICIPANTS

8.1.           Rights
or Claims. No individual shall have any rights or claims under the Plan
except in accordance with the provisions of the Plan and any applicable Award
Agreement. The grant of an Award under the Plan shall not confer any rights
upon the Participant holding such Award other than such terms, and subject to
such conditions, as are specified in the Plan as being applicable to such
Awards, or as are expressly set forth in the Award Agreement evidencing such
Award. Without limiting the generality of the foregoing, nothing contained in
the Plan or in any Award Agreement shall be deemed to:

	
 

	
 

	
 

	
(a)           Give any
  Employee or Non-Employee Director the right to be retained in the service of
  the Company, an Affiliate and/or a Subsidiary, whether in any particular
  position, at any particular rate of compensation, for any particular period
  of time or otherwise; 

	
 

	
 

	
 

	
(b)           Restrict
  in any way the right of the Company, an Affiliate and/or a Subsidiary to
  terminate, change or modify any Employee’s employment or any Non-Employee
  Director’s service as a Director at any time with or without cause; 

	
 

	
 

	
 

	
(c)           Confer
  on any Consultant any right of continued relationship with the Company, an
  Affiliate and/or a Subsidiary, or alter any relationship between them,
  including any right of the Company or an Affiliate or Subsidiary to
  terminate, change or modify its relationship with a Consultant; 

	
 

	
 

	
 

	
(d)           Give any
  Employee, Non-Employee Director or Consultant the right to receive any bonus,
  whether payable in cash or in Shares, or in any combination thereof, from the
  Company, an Affiliate and/or a Subsidiary, nor be construed as limiting in
  any way the right of the Company, an Affiliate and/or a Subsidiary to
  determine, in its sole discretion, whether or not it shall pay any Employee,
  Non-Employee Director or Consultant bonuses, and, if so paid, the amount
  thereof and the manner of such payment; or 

	
 

	
 

	
 

	
(e)           Give any
  Participant any rights whatsoever with respect to an Award except as
  specifically provided in the Plan and the Award Agreement. 

8.2.           Adoption
of the Plan. The adoption of the Plan shall not be deemed to give any
Employee, Non-Employee Director or Consultant or any other individual any right
to be selected as a Participant or to be granted an Award, or, having been so
selected, to be selected to receive a future Award.

8.3.           No
Effects on Benefits. Payments and other compensation received by a
Participant under an Award are not part of such Participant’s normal or
expected compensation or salary for any purpose, including calculating
termination, indemnity, severance,
resignation, redundancy, end of service payments, bonuses, long-service awards,
pension or retirement benefits or similar payments under any laws, plans,
contracts, arrangements or otherwise. No claim or entitlement to compensation
or damages arises from the termination of the Plan or diminution in value of
any Award or Shares received under the Plan.

12

ARTICLE IX.

CHANGE OF CONTROL

9.1.           Treatment
of Outstanding Awards. In the event of a Change of Control, unless an Award
has been Assumed, or unless otherwise specifically prohibited by any applicable
laws, rules or regulations as in effect prior to the occurrence of the Change
of Control, specifically with respect to a Change of Control, notwithstanding
any provision in any Award Agreement to the contrary, the Period of Restriction
and any conditions or restrictions applicable to Awards which are then
outstanding shall, in whole or in part, be deemed satisfied and all Awards
shall become fully vested and nonforfeitable, unless the Committee, in its discretion,
and on such terms and conditions as it deems appropriate, shall provide
otherwise, either by the terms of the Award Agreement or by resolution adopted
prior to the occurrence of such Change of Control.

9.2.           No
Implied Rights; Other Limitations. No Participant shall have any right to
prevent the consummation of any of the acts described in Section 4.2 or 9.1
affecting the number of Shares available to, or other entitlement of, such
Participant under the Plan or such Participant’s Award. Any actions or
determinations of the Committee under this Article IX need not be uniform as to
all outstanding Awards, nor treat all Participants identically.

ARTICLE X.

AMENDMENT, MODIFICATION, AND TERMINATION

                 The
Board may, at any time and with or without prior notice, amend, alter, suspend,
or terminate the Plan, and the Committee may, to the extent permitted by the
Plan, amend the terms of any Award theretofore granted, including any Award
Agreement, in each case, retroactively or prospectively; provided, however,
that no such amendment, alteration, suspension, or termination of the Plan
shall be made which, without first obtaining approval of the shareholders of
the Company (but only where such approval is necessary to satisfy any
applicable law, regulation or rule (including the applicable regulations and
rules of the SEC and any national securities exchange)), would:

	
 

	
 

	
 

	
(a)           except
  as is provided in Section 4.2, increase the maximum number of Shares which
  may be awarded under the Plan; or

	
 

	
 

	
 

	
(b)           otherwise
  require shareholder approval to comply with any applicable law, regulation or
  rule (including the applicable regulations and rules of the SEC and any
  national securities exchange).

13

                 In
addition, no such amendment, alteration, suspension or termination of the Plan
or any Award theretofore granted, including any Award Agreement, shall be made
which would materially impair the previously accrued rights of a Participant
under any outstanding Award without the written consent of such Participant;
provided, however, that the Board may amend or alter the Plan and the Committee
may amend or alter any Award, including any Award Agreement, either
retroactively or prospectively, without the consent of the applicable
Participant, (1) so as to preserve or come within any exemptions from liability
under Section 16(b) of the Exchange Act, pursuant to the rules and releases
promulgated by the SEC (including Rule 16b-3), or (2) if the Board or the
Committee determines in its discretion that such amendment or alteration either
(I) is required or advisable for the Company, the Plan or the Award to satisfy,
comply with or meet the requirements of any law, regulation, rule or accounting
standard or (II) is not reasonably likely to significantly diminish the benefits
provided under such Award, or that such diminishment has been or will be
adequately compensated.

ARTICLE XI.

TAX WITHHOLDING

11.1.         Tax
Withholding. The Company and/or any Subsidiary or Affiliate are authorized
to withhold and retain Shares otherwise deliverable under any Award in respect
of taxes due on account of such Award, and take any other action as may be
necessary or appropriate, as determined by the Committee, to satisfy all
obligations for the payment of such taxes; provided, however, that the amount
of any Shares so retained shall not exceed the number of Shares having a market
value not less than the amount necessary to satisfy all required income and
payroll tax withholding obligations using applicable rates, as determined by
the Committee. Without limitation of the foregoing, the Committee may, in its
discretion, make other arrangements with a Participant for the satisfaction by
the Participant of tax withholding obligations that arise by reason of any
Award other than by the retention of Shares. The Company shall not be required
to make any distribution under or relating to the Plan or any Award until tax
withholding obligations are satisfied or such arrangements are made, as
determined by the Committee in its discretion.

11.2.         Restrictions.
The satisfaction of tax obligations pursuant to this Article XI shall be
subject to such restrictions as the Committee may impose, including any
restrictions required by applicable law or the rules and regulations of the
SEC, and shall be construed consistent with an intent to comply with any such
applicable laws, rule and regulations.

ARTICLE XII.

LIMITS OF LIABILITY; INDEMNIFICATION

12.1.         Limits
of Liability.

	
 

	
 

	
 

	
(a)           Any
  liability of the Company or a Subsidiary or Affiliate to any Participant with
  respect to any Award shall be based solely upon contractual obligations
  created by the Plan and the Award Agreement.

14

	
 

	
 

	
 

	
(b)           None of
  the Company, any Subsidiary, any Affiliate, any member of the Board or the
  Committee or any other person participating in any determination of any
  question under the Plan, or in the interpretation, administration or
  application of the Plan, shall have any liability, in the absence of bad
  faith, to any party for any action taken or not taken in connection with the
  Plan, except as may expressly be provided by statute. 

	
 

	
 

	
 

	
(c)           Each
  member of the Committee, while serving as such, shall be considered to be
  acting in his or her capacity as a director of the Company. Members of the
  Board of Directors and members of the Committee acting under the Plan shall
  be fully protected in relying in good faith upon the advice of counsel and
  shall incur no liability except for gross negligence or willful misconduct in
  the performance of their duties. 

	
 

	
 

	
 

	
(d)           The
  Company shall not be liable to a Participant or any other person as to: (i)
  the non-issuance of Shares as to which the Company has been unable to obtain
  from any regulatory body having relevant jurisdiction the authority deemed by
  the Committee or the Company’s counsel to be necessary to the lawful issuance
  and sale of any Shares hereunder, and (ii) tax consequence to any Participant
  or other person due to the receipt or settlement of any Award. 

12.2.         Indemnification.
Subject to the requirements of applicable law, each individual who is or shall
have been a member of the Committee or of the Board, or an officer of the
Company to whom authority was delegated in accordance with Article III, shall
be indemnified and held harmless by the Company against and from any loss,
cost, liability, or expense that may be imposed upon or reasonably incurred by
him or her in connection with or resulting from any claim, action, suit, or
proceeding to which he or she may be a party or in which he or she may be
involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in settlement thereof,
with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she undertakes to handle and defend it on his
or her own behalf, unless such loss, cost, liability, or expense is a result of
the individual’s own willful misconduct or except as provided by statute. The
foregoing right of indemnification shall not be exclusive of any other rights
of indemnification to which such individual may be entitled under the Company’s
Articles of Association, as a matter of law, or otherwise, or any power that
the Company may have to indemnify or hold harmless such individual.

ARTICLE XIII.

MISCELLANEOUS

13.1.         Drafting
Context. Except where otherwise indicated by the context, any masculine
term used herein also shall include the feminine; the plural shall include the
singular and the singular shall include the plural. The words “Article,”
“Section,” and “paragraph” herein shall refer to provisions of the Plan, unless
expressly indicated otherwise. The words “include,” “includes,” and “including”
herein shall be deemed to be followed by
“without limitation” whether or not they are in fact followed by such words or
words of similar import, unless the context otherwise requires.

15

13.2.         Forfeiture
Events.

	
 

	
 

	
 

	
(a)           Notwithstanding
  any provision of the Plan to the contrary, the Committee shall have the
  authority to determine (and may so provide in any Award Agreement) that a
  Participant’s (including his or her beneficiary’s) rights, payments and
  benefits with respect to any Award shall be subject to reduction,
  cancellation, forfeiture or recoupment in the event of the Participant’s
  Termination for cause (as “cause” is defined in an Award Agreement) or due to
  voluntary resignation; serious misconduct; violation of the Company’s or a
  Subsidiary’s or Affiliate’s policies; breach of fiduciary duty; unauthorized
  disclosure of any trade secret or confidential information of the Company or
  a Subsidiary or Affiliate; breach of applicable noncompetition,
  nonsolicitation, confidentiality or other restrictive covenants; or other
  conduct or activity that is in competition with the business of the Company
  or any Subsidiary or Affiliate, or otherwise detrimental to the business,
  reputation or interests of the Company and/or any Subsidiary or Affiliate; or
  upon the occurrence of certain events specified in the applicable Award
  Agreement (in any such case, whether or not the Participant is then an
  Employee, Non-Employee Director or Consultant). The determination of whether
  a Participant’s conduct, activities or circumstances are described in the
  immediately preceding sentence shall be made by the Committee in its
  discretion, and pending any such determination, the Committee shall have the
  authority to suspend the delivery of Shares or settlement of all or any
  portion of such Participant’s outstanding Awards pending an investigation of
  the matter. 

	
 

	
 

	
 

	
(b)           If the
  Company is required to prepare an accounting restatement (1) due to the
  material noncompliance of the Company, as a result of misconduct, with any
  financial reporting requirement under the securities laws, if a Participant
  knowingly or with gross negligence engaged in such misconduct, or knowingly
  or with gross negligence failed to prevent such misconduct, or if a
  Participant is one of the individuals subject to automatic forfeiture under
  Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall
  reimburse the Company the amount of any payment in settlement of an Award
  earned or accrued during the twelve (12) month period following the first
  public issuance or filing with the SEC (whichever just occurred) of the
  financial document embodying such financial reporting requirement, and (2)
  the Committee may in its discretion provide that if the amount earned under
  any Participant’s Award is reduced by such restatement, such Participant
  shall reimburse the Company the amount of any such reduction previously paid
  in settlement of such Award. 

13.3.         Severability.
In the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

16

13.4.         Transfer,
Leave of Absence. The Committee shall have the discretion to determine the
effects upon any Award, upon an individual’s status as an Employee,
Non-Employee Director or Consultant for purposes of the Plan (including whether
a Participant shall be deemed to have experienced a Termination or other change
in status) and upon the exercisability, vesting, termination or expiration of
any Award in the case of: (a) any Participant who is employed by an entity that
ceases to be an Affiliate or Subsidiary (whether due to a spin-off or
otherwise), (b) any transfer of a Participant between locations of employment
with the Company, an Affiliate, and/or Subsidiary or between the Company, an
Affiliate or Subsidiary or between Affiliates or Subsidiaries, (c) any leave of
absence of a Participant, (d) any change in a Participant’s status from an
Employee to a Consultant or a Non-Employee Director, or vice versa, (e) any
increase or decrease in the scope of engagement of a Participant; and (f) upon
approval by the Committee, any Employee who experiences a Termination but
becomes employed by a partnership, joint venture, corporation or other entity
not meeting the requirements of an Affiliate or Subsidiary. 

13.5.         No
Effect on Other Plans. Neither the adoption of the Plan nor anything
contained herein shall affect any other compensation or incentive plans or
arrangements of the Company or any Subsidiary or Affiliate, or prevent or limit
the right of the Company or any Subsidiary or Affiliate to establish any other
forms of incentives or compensation for their directors, officers, eligible
employees or consultants or grant or assume options or other rights otherwise
than under the Plan. 

13.6.         Section
16 of Exchange Act. Unless otherwise stated in the Award Agreement,
notwithstanding any other provision of the Plan, any Award granted to an
“insider” shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Act (including Rule
16b-3) that are requirements for the application of such exemptive rule, and
the Plan and the Award Agreement shall be deemed amended to the extent
necessary to conform to such limitations. For these purposes, an “insider”
means an individual who is, on the relevant date, an officer, director or ten
percent (10%) Beneficial Owner of any class of the Company’s equity securities
that is registered pursuant to Section 12 of the Exchange Act, as determined by
the Committee in accordance with Section 16 of the Exchange Act. 

13.7.         Requirements
of Law; Limitations on Awards.

	
 

	
 

	
 

	
(a)           The granting
  of Awards and the issuance of Shares under the Plan shall be subject to all
  applicable laws, rules, and regulations, and to such approvals by any
  governmental agencies or national securities exchanges as may be required. 

	
 

	
 

	
 

	
(b)           If at
  any time the Committee shall determine, in its discretion, that the listing,
  registration and/or qualification of Shares upon any securities exchange or
  under any law, or the consent or approval of any governmental regulatory
  body, is necessary or desirable as a condition of, or in connection with, the
  sale or purchase of Shares hereunder, the Company shall have no obligation to
  allow the grant or payment of any Award, or to issue or deliver evidence of title for Shares
issued under the Plan, in whole or in part, unless and until such listing,
registration, qualification, consent and/or approval shall have been effected
or obtained, or otherwise provided for, free of any conditions not acceptable
to the Committee.

17

	
 

	
 

	
 

	
(c)           If at
  any time counsel to the Company shall be of the opinion that any delivery of
  Shares pursuant to an Award is or may be in the circumstances unlawful or
  result in the imposition of excise taxes on the Company or any Subsidiary or
  Affiliate under the statutes, rules or regulations of any applicable
  jurisdiction, the Company shall have no obligation to make such delivery, or
  to make any application or to effect or to maintain any qualification or
  registration under the Securities Act, or otherwise with respect to Shares or
  Awards and the right to payment of any Award shall be suspended until, in the
  opinion of such counsel, such sale or delivery shall be lawful or will not
  result in the imposition of excise taxes on the Company or any Subsidiary or
  Affiliate. 

	
 

	
 

	
 

	
(d)           Upon
  termination of any period of suspension under this Section 13.7, any Award
  affected by such suspension which shall not then have expired or terminated
  shall be reinstated as to all Shares available before such suspension and as
  to the Shares which would otherwise have become available during the period
  of such suspension, but no suspension shall extend the term of any Award. 

	
 

	
 

	
 

	
(e)           The
  Committee, in its absolute discretion, may impose such restrictions on the
  ownership and transferability of the Shares purchasable or otherwise
  receivable by any person under any Award as it deems appropriate. Any such
  restrictions shall be set forth in the applicable Award Agreement, and the
  certificates evidencing such shares may include any legend that the Committee
  deems appropriate to reflect any such restrictions. 

	
 

	
 

	
 

	
(f)           An Award
  and any Shares received upon the payment of an Award shall be subject to such
  other transfer and/or ownership restrictions and/or legending requirements as
  the Committee may establish in its discretion and may be referred to on the
  certificates evidencing such Shares, including restrictions under applicable
  securities laws, under the requirements of any stock exchange or market upon
  which such Shares are then listed and/or traded, and under any blue sky or state
  securities laws applicable to such Shares. 

13.8.         Participants
Deemed to Accept Plan. By accepting any benefit under the Plan, each
Participant and each person claiming under or through any such Participant
shall be conclusively deemed to have indicated their acceptance and
ratification of, and consent to, all of the terms and conditions of the Plan
and any action taken under the Plan by the Board, the Committee or the Company,
in any case in accordance with the terms and conditions of the Plan. 

18

13.9.         Governing
Law. The Plan and, except as provided below or in an applicable subplan,
each Award Agreement to a Participant shall be governed by the laws of the
State of Israel, excluding any conflicts or choice of law rule or principle
that might otherwise refer construction or interpretation of the Plan to the
substantive law of another jurisdiction. Unless otherwise provided in the Award
Agreement, Participants are deemed to submit to the exclusive jurisdiction and
venue of the courts in Tel Aviv, Israel, to resolve any and all issues that may
arise out of or relate to the Plan or any related Award Agreement. 

                 Notwithstanding
any provision of the Plan to the contrary, in order to comply with the laws or
practices of countries in which the Company, any Affiliate, and/or any
Subsidiary operates or has Employees, Non-Employee Directors or Consultants,
the Committee, in its sole discretion, shall have the power and authority to: 

	
 

	
 

	
 

	
(a)           Grant
  Awards (including substitutes for Awards), and modify the terms and
  conditions of any Awards, on such terms and conditions as the Committee
  determines necessary or appropriate to permit participation in the Plan by
  individuals otherwise eligible to so participate, or otherwise to comply with
  applicable laws or conform to applicable requirements or practices of the
  applicable jurisdictions; 

	
 

	
 

	
 

	
(b)          
  Establish subplans and adopt or modify exercise procedures and other terms
  and procedures, to the extent such actions may be necessary or advisable. Any
  subplans and modifications to Plan terms and procedures established under
  this Section 13.9 by the Committee shall be attached to the Plan as
  appendices; and 

	
 

	
 

	
 

	
(c)           Take any
  action, before or after an Award is made, that the Committee, in its
  discretion, deems advisable to obtain approval or comply with any necessary
  local government regulatory exemptions or approvals. 

                 Notwithstanding
the above, the Committee may not take any actions hereunder, and no Awards
shall be granted, that would violate any applicable law. 

13.10.       Plan
Unfunded. The Plan shall be unfunded. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the issuance of Shares upon payment of any Award. 

13.11.       Administration
Costs. The Company shall bear all costs and expenses incurred in
administering the Plan, including expenses of issuing Shares pursuant to any
Awards granted hereunder. 

13.12.       Uncertificated
Shares. To the extent that the Plan provides for issuance of certificates
to reflect the transfer of Shares, the transfer of such Shares may nevertheless
be effected on a noncertificated basis, to the extent not prohibited by
applicable law or the rules of any stock exchange. 

19

13.13.       No
Fractional Shares. No fractional Shares shall be issued upon the payment of
an Award and any such fractions shall be rounded to the nearest whole number. 

20

STARLIMS TECHNOLOGIES LTD.

APPENDIX A: ISRAEL 

TO THE 2007 RESTRICTED STOCK UNIT PLAN

1. GENERAL

1.1.           This
appendix (the “Appendix”) shall apply only to Israeli Participants who are
residents of the State of Israel or those who are deemed to be residents of the
State of Israel for the payment of tax. The provisions specified hereunder
shall form an integral part of the STARLIMS Technologies Ltd. 2007 Restricted
Stock Unit Plan (hereinafter: the “Plan”), which applies to the issuance of
Awards to employees, directors, consultants and service provides of STARLIMS
Technologies Ltd. or its Affiliates (the “Company”). 

1.2.           This
Appendix is to be read as a continuation of the Plan and only modifies Awards
granted to Israeli Participants so that they comply with the requirements set
by the Israeli law in general, and in particular with the provisions of Section
102 (as specified herein), as may be amended or replaced from time to time. For
the avoidance of doubt, this Appendix does not add to or modify the Plan in respect
of any other category of Participants. 

1.3.           The Plan
and this Appendix are complementary to each other and shall be deemed as one.
Subject to Section 1.2 above, in any case of contradiction, whether explicit or
implied, between any definitions and/or provisions of this Appendix and the
Plan, the provisions set out in this Appendix shall prevail. 

1.4.           Any
capitalized terms not specifically defined in this Appendix shall be construed
according to the interpretation given to it in the Plan. 

2. DEFINITIONS

2.1.           “Affiliate”
means any “employing company” within the meaning of Section 102(a) of the
Ordinance. 

2.2.           “Approved
102 Award” means an Award granted pursuant to Section 102(b) of the
Ordinance and held in trust by a Trustee for the benefit of the Israeli
Participant. 

2.3.           “Capital
Gain Award (CGA)” means an Approved 102 Award elected and designated by the
Company to qualify under the capital gain tax treatment in accordance with the
provisions of Section 102(b)(2) of the Ordinance. 

2.4.           “Controlling
Shareholder” shall have the meaning ascribed to it in Section 32(9) of the
Ordinance. 

2.5.           “Employee”
means an Israeli Participant who is employed by the Company or its Affiliates,
including an individual who is serving as a director or an office holder, but
excluding any Controlling Shareholder. 

21

2.6.           “Israeli
Participant” means a person who receives or holds an Award under the Plan
and this Appendix. 

2.7.           “ITA”
means the Israeli Tax Authorities. 

2.8.           “Ordinary
Income Award (OIA)” means an Approved 102 Award elected and designated by
the Company to qualify under the ordinary income tax treatment in accordance
with the provisions of Section 102(b)(1) of the Ordinance. 

2.9.           “102
Award” means any Award granted to Employees pursuant to Section 102 of the
Ordinance. 

2.10.         “3(i)
Award” means an Award granted pursuant to Section 3(i) of the Ordinance to
any person who is a Non-Employee. 

2.11.         “Israeli
Award Agreement” notwithstanding Section 2.4 of the Plan, for the purpose
of this Appendix, Israeli Award Agreement shall mean a written agreement
entered into and signed by the Company and an Israeli Participant that sets out
the terms and conditions of an Award. 

2.12.         “Non-Employee”
means an Israeli Participant who is a consultant, adviser, service provider,
Controlling Shareholder or any other person who is not an Employee. 

2.13.         “Ordinance”
means the Israeli Income Tax Ordinance [New Version] 1961 as now in effect or
as hereafter amended. 

2.14.         “Section
102” means section 102 of the Ordinance and any regulations, rules, orders
or procedures promulgated thereunder as now in effect or as hereafter amended. 

2.15.         “Trustee”
means any person appointed by the Company to serve as a trustee and approved by
the ITA, all in accordance with the provisions of Section 102(a) of the
Ordinance. 

2.16.         “Unapproved
102 Award” means an Award granted to an Employee pursuant to Section 102(c)
of the Ordinance and not held in trust by a Trustee. 

3. ISSUANCE OF AWARDS

3.1.           Notwithstanding Article V of the Plan and in addition thereto, any Israeli
Participants eligible for participation in the Plan and this Appendix as
Israeli Participants shall include any Employees and/or Non-Employees of the
Company or of any of the Company’s Affiliate; provided, however, that (i) Employees
may only be granted 102 Awards; and (ii) Non-Employees and/or Controlling
Shareholders may only be granted 3(i) Awards. 

3.2.           The
Company may designate Awards granted to Employees pursuant to Section 102 as
Unapproved 102 Awards or Approved 102 Awards. 

22

3.3.           The grant
of Approved 102 Awards shall be made under this Appendix, and shall be
conditioned upon the approval of this Appendix by the ITA. 

3.4.           Approved
102 Awards may either be classified as Capital Gain Awards (“CGAs”) or Ordinary
Income Awards (“OIAs”). 

3.5.           No
Approved 102 Awards may be granted under this Appendix to any eligible
Employee, unless and until the Company’s election of the type of Approved 102
Awards as CGA or OIA granted to Employees (the “Election”) is appropriately
filed with the ITA. Such Election shall become effective beginning the first
date of grant of an Approved 102 Award under this Appendix and shall remain in
effect until the end of the year following the year during which the Company
first granted Approved 102 Awards. The Election shall obligate the Company to
grant only the type of Approved 102 Award it has elected, and shall apply to
all Israeli Participants who were granted Approved 102 Awards during the period
indicated herein, all in accordance with the provisions of Section 102(g) of
the Ordinance. For the avoidance of doubt, such Election shall not prevent the
Company from granting Unapproved 102 Awards simultaneously. 

3.6.           All
Approved 102 Awards must be held in trust by a Trustee, as described in Section
4 below. No 102 Award will be granted by the Company to an Israeli Participant
unless such Israeli Participant previously executes an Israeli Award
Agreement which will include, inter alia, the following provisions: (a) a
consent of the Israeli Participant to receive the 102 Award, in
accordance with the provisions of the Plan, this Appendix and the Israeli
Award Agreement, including the undertaking thereof to bear all tax
consequences and other mandatory payments arising therefrom; (b) an
acknowledgement of the Israeli Participant that he/she is familiar with the
provisions of Section 102 and the regulations and rules promulgated thereunder,
including without limitations the type of Award granted hereunder and the tax
implications applicable to such grant; (c) an acceptance by the Israeli
Participant of the provisions of the trust agreement signed between the Company
and the Trustee and his/her agreement to be bound by its terms; (d) an
undertaking by the Israeli Participant to act in accordance with the provisions
of Section 102 and the regulations and rules promulgated thereunder, including
an undertaking not to sell or otherwise transfer the Award, or the Shares
allocated or issued upon exercise or vesting of such Award, until the End of
the Holding Period as defined in Section 102(a) of the Ordinance. 

3.7.           For the
avoidance of doubt, the designation of Unapproved 102 Awards and Approved 102
Awards shall be subject to the terms and conditions set forth in Section 102. 

23

4. TRUSTEE

4.1.           Approved
102 Awards which shall be granted under this Appendix and/or any Shares
allocated or issued upon exercise or vesting of such Approved 102 Awards and/or
shares received subsequently following any realization of rights, including
without limitation
bonus shares, shall be allocated or issued to the Trustee and held for the
benefit of the Employee for such period of time as required by Section 102 (the
“Holding Period”). In case the requirements for Approved 102 Awards are not
met, then the Approved 102 Awards shall be regarded as Unapproved 102 Awards,
all in accordance with the provisions of Section 102. 

4.2.          
Notwithstanding anything to the contrary, the Trustee shall not release any
Restricted Stock Units granted under the Plan and this Appendix or any Shares
allocated or issued upon exercise or vesting of Approved 102 Awards prior to
the full payment of the Employee’s tax liabilities, if any, arising from
Approved 102 Awards which were granted to him/her and/or any Shares allocated
or issued upon exercise or vesting of such Awards. 

4.3.           With
respect to any Approved 102 Award, subject to the provisions of Section 102, an
Israeli Participant shall not sell or release from trust any Share received
upon the exercise or vesting of an Approved 102 Award and/or any share received
subsequently following any realization of rights, including without limitation,
bonus shares, until the lapse of the Holding Period required under Section 102.
Notwithstanding the above, if any such sale or release occurs during the
Holding Period, the sanctions under Section 102 shall apply to and shall be
borne solely by such Israeli Participant. 

4.4.           Upon
receipt of any Approved 102 Award, the Employee will sign an undertaking to
release the Trustee from any liability in respect of any action or decision
duly taken and bona fide executed in relation with this Appendix, or any
Approved 102 Award or Share granted to him thereunder. 

5. THE AWARDS

                 Notwithstanding
anything to the contrary in the Plan and in addition thereto, the terms and
conditions upon which the Awards shall be issued and exercised or vest, as
applicable, shall be as specified in the Israeli Award Agreement to be executed
pursuant to the Plan and to this Appendix. Each Israeli Award Agreement shall
state, inter alia, the number of Restricted Stock Units to which the Award
relates, the type of Award granted thereunder (whether a CGA, OIA, Unapproved
102 Award or a 3(i) Award), and any applicable vesting provisions and exercise
price that may be payable. 

6. FAIR MARKET VALUE

                 Solely for the
purpose of determining the tax liability pursuant to Section 102(b)(3) of the
Ordinance, the fair market value of the Shares at the date of grant shall be
determined in accordance with the average value of the Shares on the Tel-Aviv
Stock Exchange on the thirty (30) trading days preceding the date of grant. 

24

7. ASSIGNABILITY AND SALE OF AWARDS

7.1.          
Notwithstanding any other provision of the Plan, no Award or any right with
respect thereto, or purchasable hereunder, whether fully paid or not, shall be
assignable, transferable
or given as collateral or any right with respect to them given to any third
party whatsoever, and during the lifetime of the Israeli Participant each and
all of such Israeli Participant’s rights with respect to an Award shall belong
only to the Israeli Participant. Any such action made directly or indirectly,
for an immediate validation or for a future one, shall be void. 

7.2.           As long
as Awards issued hereunder are held by the Trustee on behalf of the Israeli
Participant, all rights of the Israeli Participant over the Shares are
personal, can not be transferred, assigned, pledged or mortgaged, other than by
will or laws of descent and distribution. 

8. INTEGRATION OF SECTION 102

8.1.           With
regards to Approved 102 Awards, the provisions of the Plan and/or the Appendix
and/or the Israeli Award Agreement shall be subject to the provisions of
Section 102 and any pre-rulings obtained by the ITA, and the said provisions
and pre-rulings shall be deemed an integral part of the Plan and of the
Appendix and of the Israeli Award Agreement. 

8.2.           Any
provision of Section 102 and/or pre-rulings which is necessary in order to
receive and/or to keep any tax benefit pursuant to Section 102, which is not
expressly specified in the Plan or the Appendix or the Israeli Award Agreement,
shall be considered binding upon the Company and the Israeli Participants. 

9. TAX CONSEQUENCES

9.1.          
Notwithstanding anything to the contrary in Article XI of the Plan and solely
for the purpose of Awards granted under this Appendix, any tax consequences
arising from the grant, exercise or vesting of any Award or from any other
event or act (of the Company, and/or its Affiliates, and the Trustee or the
Israeli Participant) hereunder shall be borne solely by the Israeli
Participant. The Company and/or its Affiliates, and/or the Trustee shall
withhold taxes according to the requirements under the applicable laws, rules,
and regulations, including withholding taxes at source. Furthermore, the
Israeli Participant shall agree to indemnify the Company and/or its Affiliates
and/or the Trustee and hold them harmless against and from any and all
liability for any such tax or interest or penalty thereon, including without
limitation, liabilities relating to the necessity to withhold, or to have
withheld, any such tax from any payment made to the Israeli Participant. 

9.2.           The
Company and/or, when applicable, the Trustee shall not be required to release
any share certificate to an Israeli Participant until all required payments have
been fully made. 

9.3.           With
respect to Unapproved 102 Award, if the Israeli Participant ceases to be
employed by the Company or any Affiliate, the Israeli Participant shall extend
to the Company and/or its Affiliate a security or guarantee for the payment of
tax due at the time of sale
of Shares, all in accordance with the provisions of Section 102 and the rules,
regulation or orders promulgated thereunder. 

25

10. TERM OF PLAN AND APPENDIX

                 Notwithstanding
anything to the contrary in Article X of the Plan and in addition thereto, the
Company shall obtain all approvals for the adoption of this Appendix or for any
amendment to this Appendix as are necessary to comply with (i) any applicable
law, including without limitation U.S. securities laws and the securities laws
of any other jurisdiction applicable to Awards granted to Israeli Participant
under this Appendix, (ii) any national securities exchange on which the Shares
are traded, and (iii) any applicable rules and regulations promulgated by the
U.S. Securities and Exchange Commission. 

11. GOVERNING LAW & JURISDICTION

                 This
Appendix shall be governed by and construed and enforced in accordance with the
laws of the State of Israel applicable to contracts made and to be performed
therein, without giving effect to the principles of conflict of laws. The
competent courts in Tel Aviv shall have sole jurisdiction in any matters
pertaining to this Appendix. 

26

STARLIMS TECHNOLOGIES LTD. 

APPENDIX B: UNITED STATES 

TO THE 2007 RESTRICTED STOCK UNIT PLAN

1. SPECIAL PROVISIONS FOR U.S. TAXPAYERS

1.1.           This
Appendix (the “Appendix”) to the STARLIMS Technologies Ltd. 2007 Restricted
Stock Unit Plan (the “Plan”) shall be effective on the Effective Date. 

1.2.           The
provisions specified hereunder apply only to persons who are subject to U.S.
federal income tax (any such person, a “U.S. Taxpayer”). 

1.3.           This
Appendix is to be read as a continuation of the Plan and only applies with
respect to Awards granted under the Plan to U.S. Taxpayers. The purpose of this
Appendix is to establish certain rules and limitations applicable to Awards
that may be granted or issued under the Plan to U.S. Taxpayers from time to
time, in compliance with applicable tax, securities and other applicable laws
currently in force. For the avoidance of doubt, this Appendix does not add to
or modify the Plan in respect of any other category of Israeli Participants. 

1.4.           The Plan
and this Appendix are complementary to each other and shall be deemed as one.
Subject to section 1.3 above, in any case of contradiction, whether explicit or
implied, between any definitions and/or provisions of this Appendix and the
Plan, the provisions set out in this Appendix shall prevail. 

2. DEFINITIONS

                 Capitalized
terms not otherwise defined herein shall have the meaning assigned to them in
the Plan. The following additional definitions will apply to grants made
pursuant to this Appendix, provided, however, that to the extent that such
definitions are provided for in the Plan and this Appendix, the definitions in
this Appendix shall apply to Awards granted to U.S. Taxpayers: 

2.1.           “Code”
means the Internal Revenue Code of 1986, as it may be amended from time to
time, including rules and regulations promulgated thereunder and successor
provisions and rules and regulations thereto. 

2.2.           “Disability”
means either (a) the Participant is, as determined by the Committee in its sole
discretion, unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment that can be expected
to result in death or can be expected to last for a continuous period of not
less than 12 months, or (b) the Participant is determined to be totally
disabled by the U.S. Social Security Administration. 

27

2.3.           “Qualified
Change of Control” means a change of control of the Company that qualifies
as a change in the ownership or effective control of the Company, or in the ownership of a
substantial portion of the assets of the Company, within the meaning of Section
409A(a)(2)(A)(v) of the Code. 

2.4.           “Separation
from Service” means, (a) in the case of a Participant who is an employee of
the Company, the Participant’s separation from service with the Company on
account of the Participant’s death, retirement or termination of employment,
and (b) in the case of a Participant who is not an employee of the Company, the
expiration of the contract under which the Participant’s services to the
company are performed if the expiration constitutes a good-faith and complete
termination of the contractual relationship. For these purposes, the Committee
shall determine whether the Participant has experienced a Separation from
Service in a manner consistent with Code Section 409A and the final regulations
thereunder. 

3. DEFERRED COMPENSATION

3.1.           If any
Award would be considered deferred compensation as defined under Code Section
409A and would fail to meet the requirements of Code Section
409A(a)(1)(A)(i)(I) (the “Section 409A Requirements”), then such Award shall be
null and void; provided, however, that the Committee may permit deferrals of
compensation pursuant to the terms of a Participant’s Award Agreement, a
separate plan, or a subplan which (in each case) meets the Section 409A
Requirements. Additionally, to the extent any Award is subject to Code Section
409A, notwithstanding any provision herein to the contrary, this Appendix shall
not permit the acceleration of the time or schedule of any distribution related
to such Award, except as permitted by Code Section 409A. 

3.2.           Unless
the Committee provides otherwise in an Award Agreement, Shares in respect of
each Award shall be distributed in full satisfaction of the Award to the
Participant no later than the fifteenth day of the third month after the end of
the first calendar year in which such Award is no longer subject to a
“substantial risk of forfeiture” within the meaning of Code Section 409A (the
“Normal Payment Period”). If an Award Agreement provides pursuant to Section
6.5 of the Plan that an Award shall be distributable after the Normal Payment
Period, the Award Agreement shall include terms that are intended to satisfy
the Section 409A Requirements and the Award shall be distributable only upon
the earliest to occur of the events described in Section 3.4 of this Appendix
B. 

3.3.           If a
Change of Control that is not a Qualified Change of Control occurs, and
pursuant to the Plan or Award Agreement or otherwise, a distribution in respect
of an Award would otherwise be made or commence on account of such Change of
Control after the Normal Payment Period, (i) the vesting of such Award shall
accelerate in accordance with the Plan and the Award Agreement, (ii)
notwithstanding any provision of the Plan or Award Agreement to the contrary,
such distribution shall not be made or commence prior to the earliest date on
which an event in Section 3.4 of this Appendix B occurs, and (iii) in the event
any such distribution is deferred in accordance with the immediately preceding
clause (ii) beyond the date it would otherwise be made without regard to this
Appendix B, such distribution shall be distributed on such earliest payment date,
together, if determined by the Committee, with interest at the rate established
by the Committee. 

28

3.4.           If under
the terms of the Plan or any Award Agreement, Shares in respect of an Award
shall be distributed after the Normal Payment Period, such distribution shall
be made upon the earliest to occur of the following events: 

	
 

	
 

	
 

	
 

	
(a)         a date
  specified in the Award Agreement; 

	
 

	
 

	
 

	
 

	
(b)         the
  Participant’s Disability; 

	
 

	
 

	
 

	
 

	
(c)         the
  Participant’s Separation from Service; provided, however, that if the
  Participant is a “specified employee,” as defined in U.S. Treasury
  regulations §1.409A-1(i), as of the date of such Separation from Service, the
  applicable payment or distribution shall not be made before the date that is
  six months after the date of such Separation from Service (or, if earlier
  than the end of such six-month period, the date of the death of such
  Participant); or 

	
 

	
 

	
 

	
 

	
(d)         a
  Qualified Change of Control. 

3.5.           Neither
the Board nor the Committee shall take any action that would cause an Award
that is otherwise exempt from taxation under Code Section 409A to become
subject to taxation under Code Section 409A, or that would cause an Award that
is subject to Code Section 409A to fail to satisfy the Section 409A
Requirements. 

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

4. GOVERNING LAW AND JURISDICTION

This Appendix shall be governed
by and construed and enforced in accordance with the laws of the State of
Israel applicable to contracts made and to be performed therein, without giving
effect to the principles of conflict of laws. Unless otherwise provided in the
Award Agreement, Participants are deemed to submit to the exclusive jurisdiction
and venue of the courts in Tel Aviv, Israel, to resolve any and all issues that
may arise out of or relate to this Appendix or any related Award Agreement. 

29

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