Document:

ck7045120534-ex1013_14.htm

Exhibit 10.13

REDEMPTION AGREEMENT

This REDEMPTION AGREEMENT (this "Agreement") is made as of _____________________, 2021, by and among Paymentus Holdings, Inc., a Delaware corporation (the "Company"), and the [entity // person] listed on Schedule A attached hereto (the "Preferred Stockholder").  Capitalized terms not otherwise defined herein shall have the meaning set forth in that certain Stockholders Agreement, dated as of September 6, 2011, of the Company (the "Stockholders Agreement").

WHEREAS, the Preferred Stockholder currently owns the shares of Series A Preferred Stock of the Company, par value $0.01 ("Preferred Stock") set forth across from the Preferred Stockholder's name on Schedule A attached hereto.

WHEREAS, the Company desires to redeem all of the shares of Preferred Stock of the Company held by the Preferred Stockholders that are issued and outstanding as of the Closing Date.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

	
1.
	
Redemption and Cancellation of the Preferred Stock.  Pursuant to the terms and conditions set forth in this Agreement, at the Closing, the Company will redeem from the Preferred Stockholder all of the shares of Preferred Stock held by the Preferred Stockholder as set forth on Schedule A and in connection with such redemption all such shares of Preferred Stock will be immediately cancelled.

	
2.
	
Redemption Amount.  At the Closing, the Company will pay to the Preferred Stockholder the Redemption Amount. Payment of the Redemption Amount shall be made on the Closing Date (as defined below) by means of a wire transfer of immediately available funds from the Company or one of its Subsidiaries to accounts designated by the Preferred Stockholder or by check. At the Closing, the Preferred Stockholder will deliver such assignments and other documents as the Company may request to evidence the redemption of the shares of Preferred Stock, including a stock power in the form attached hereto as Exhibit A and the original certificate(s) evidencing all shares of Preferred Stock held by such Seller (or, if such certificate(s) has been lost, a lost certificate affidavit in the form attached hereto as Exhibit B).  The Preferred Stockholder acknowledges and agrees that the Redemption Amount represents the full amount that is payable with respect to the Preferred Stock held by the Preferred Stockholder and, from and after the Closing, the Preferred Stockholder, subject to receipt of the Redemption Amount, shall not be entitled to any further payments with respect to their prior ownership of any shares of Preferred Stock.

	
3.
	
Closing.  The closing of the transactions contemplated hereby (the "Closing") will occur on the date designated by the Company to the Preferred Stockholders on at least one Business Day prior notice (the date on which the Closing occurs hereunder pursuant to this Section 3, the "Closing Date").  In the event the Closing does not occur by October 31, 2021, this Agreement will be null and void and neither the Company nor the Preferred Stockholder will have any further obligations or liabilities hereunder.  Notwithstanding anything set forth in the Stockholders Agreement to the contrary, without the prior written consent of the Company the Preferred Stockholder shall not Transfer (as defined in the Stockholders' Agreement) (x) any shares of Preferred Stock from the date hereof through the Closing, except to give effect to the Closing pursuant to this Section 3 or (y) any shares of Common Stock or other Equity Securities of the Company (each as defined in 

 

 

		
the Stockholders Agreement) (other than any shares of Preferred Stock) prior to the consummation of the initial Public Offering (as defined in the Stockholders Agreement) of the Company.

	
4.
	
Waiver and Consent. The Preferred Stockholder consents to the transactions contemplated hereby and agrees to waive any notice or other procedural requirement imposed upon the Company in connection with such transactions (including, without limitation, pursuant to Section 4(b) of the Stockholders Agreement).

	
5.
	
Representations and Warranties of Preferred Stockholder.  The Preferred Stockholder hereby represents and warrants to the Company as follows as of the date hereof and as of the Closing:

	
 
	
(a)
	
Ownership.  All of the shares of Preferred Stock set forth next to the Preferred Stockholder's name on Schedule A are owned of record and beneficially by the Preferred Stockholder, and the Preferred Stockholder has good and marketable title to such shares of Preferred Stock, free and clear of any security interest, claims, liens, pledges, options, encumbrances, charges, agreements, voting trusts, proxies or other arrangements or restrictions whatsoever (other than as set forth in the Stockholders Agreement and transfer restrictions under securities laws) (collectively, "Encumbrances").  The Preferred Stockholder will deliver to the Company good and marketable title to such shares, free and clear of any Encumbrances.  Such shares of Preferred Stock are all shares of Preferred Stock owned by the Preferred Stockholder.

	
 
	
(b)
	
Legal Capacity.  The Preferred Stockholder has full legal capacity to enter into and perform its obligations set forth in this Agreement.  This Agreement when executed and delivered will constitute the valid and legally binding obligation of the Preferred Stockholder, enforceable in accordance with its terms. If the Preferred Stockholder is an entity or a trust, all requisite entity or trust consents and approvals to enter into and consummate the transactions contemplated hereby have been obtained.

	
6.
	
Notices.  Any notice, consents, waivers and other communications required or permitted by this Agreement must be in writing and must be either (i) personally delivered, (ii) sent by reputable overnight courier service (charges prepaid), or (iii) e‐mail with confirmation of transmission, in each case, to the following addresses or email addresses and marked to the attention of the person (by name or title) designated below with respect to the Company and to the Preferred Stockholder at his, her or its address indicated on Schedule A or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.  Notices will be deemed to have been given hereunder when delivered personally, one day after deposit with a reputable overnight courier service and on the date sent by e‐mail.  The address of the Company is:

 

 

2

 

	
Paymentus Holdings, Inc.

	
Attn: John Morrow

	
18390 NE 68th St.

	
Redmond, WA 98052

	
Email: jmorrow@paymentus.com

	
 

	
with a copy (which shall not constitute notice) to:

	
 

	
Kirkland & Ellis LLP

	
Attention: Shelly M. Hirschtritt, P.C.

	
Kevin W. Mausert, P.C.

	
Tushin Shah

	
300 N. LaSalle

	
Chicago, IL 60654

	
Email:  shirschtritt@kirkland.com

	
kevin.mausert@kirkland.com

	
tushin.shah@kirkland.com

 

	
7.
	
Miscellaneous.  

	
 
	
(a)
	
Governing Law.  All issues and questions concerning the construction, validity, enforcement, and interpretation of this Agreement and the exhibits and schedules hereto shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware. The Preferred Stockholder submits to the exclusive jurisdiction of the State of Delaware and the Federal District Court for the District of Delaware in any action or proceeding seeking injunctive or other relief and arising out of or relating to this Agreement and any matter involving the Company, on one hand, and the Preferred Stockholder, on the other hand (a "Related Proceeding"), and agrees that all claims in respect of such action or proceeding shall be heard and determined in any such court.  The Preferred Stockholder also agrees not to bring any action or proceeding seeking injunctive or other relief and arising out of or relating to this Agreement or any other Related Proceeding in any other court.  Nothing in this Section 7(a), however, shall affect the right of the Preferred Stockholder to serve legal process in any other manner permitted by law or at equity. The Preferred Stockholder agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity.

	
 
	
(b)
	
MUTUAL WAIVER OF JURY TRIAL.  BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING 

 

3

 

	
 
		
IN CONTRACT, TORT, OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THIS AGREEMENT AND/OR THE TRANSACTIONS CONTEMPLATED HEREBY.

	
 
	
(c)
	
Business Days.  If any time period for giving notice or taking action hereunder expires on a day which is a Saturday, Sunday or legal holiday in the state in which the Company's chief executive office is located, the time period shall automatically be extended to the business day immediately following such Saturday, Sunday or legal holiday.

	
 
	
(d)
	
This Agreement may be executed in one or more counterparts (including by means of telecopied, Docusign or pdf signature pages), all of which taken together shall constitute one and the same instrument.

	
 
	
(e)
	
This Agreement contains the entire agreement and understanding among the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, whether implied or not implied by law, relating to such subject matter in any way.

	
 
	
(f)
	
Defined Terms.

	
 
	
(i)
	
"Charter" means the Certificate of Incorporation of the Company, filed with the Secretary of State for the State of Delaware on September 2, 2011 (as thereafter corrected and amended).

	
 
	
(ii)
	
"Per Share Redemption Amount" means, with respect to any share of Preferred Stock, the sum of (x) the Liquidation Value (as defined in the Charter) of such share of Preferred Stock plus (y) all accrued and unpaid dividends on such share of Preferred Stock as of the Closing.

	
 
	
(iii)
	
"Redemption Amount" means the sum of all Per Share Redemption Amounts with respect to all shares of Preferred Stock held by the Preferred Stockholder.

 

 

4

 

IN WITNESS WHEREOF, the parties hereto have executed this Redemption Agreement on the date first written above.

 

	
THE COMPANY:

	
 
	
 
	
 

	
PAYMENTUS HOLDINGS, INC.

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

Signature Page to Redemption Agreement

 

 

	
PREFERRED STOCKHOLDER:

	
 

	
 

	
 

	
 

	
Name:

 

 

 

Signature Page to Redemption Agreement

 

 

Schedule A

 

	
Preferred Stockholder
	
Series A Preferred Shares

	
Name:

Address:

 

 

Email:
	
 

 

 

 

EXHIBIT A

FORM OF STOCK POWER

See attached.

 

 

STOCK POWER

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto Payments Holdings, Inc., a Delaware corporation (the "Corporation"),               shares of the Series A Preferred Stock, $0.01 par value, of the Corporation, standing in its name on the books of said Company represented by Certificate Number ____, and does hereby irrevocably constitute and appoint any duly appointed officer of the Corporation as attorney‐in‐fact to transfer the said stock on the books of the Company with full power of substitution in the premises.

 

	
Dated:
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
Name:

 

 

EXHIBIT B

FORM OF AFFIDAVIT OF LOST STOCK CERTIFICATE

See attached.

 

 

AFFIDAVIT OF LOST STOCK CERTIFICATE

The undersigned does hereby certify that the undersigned is the owner and holder of Stock Certificate Number ____, representing               shares of Series A Preferred Stock, par value $0.01 per share (the "Stock Certificate"), of Paymentus Holdings Inc., a Delaware corporation (the "Corporation"), and does further certify as follows:

	
1.
	
The undersigned has made a diligent search for said Stock Certificate and has been unable to locate said Stock Certificate;

	
2.
	
The undersigned has not assigned, transferred or hypothecated said Stock Certificate;

	
3.
	
The undersigned will, in the event said Stock Certificate is recovered, cause the same to be returned to the Corporation for cancellation; and

	
4.
	
The undersigned agrees to indemnify and save harmless the Corporation from any and all loss, liability, damages, penalties, fines, costs, taxes and expenses (including all reasonable attorneys' fees and court costs) incurred by the Corporation resulting from, arising out of, relating to or caused by the loss, misplacement or destruction of said Stock Certificate.

IN WITNESS WHEREOF, the undersigned has executed this Affidavit of Lost Stock Certificate as of the ______ day of ___________________ , 2021.

 

	
 

	
Name:Exhibit 4.3

 

 

Remuneration
Policy for Company Officers

for
the Years 2018 - 2021

 

Table
of Contents:

 

	1.	General	A-2
	2.	About the company and its business environment	A-2
	3.	The Remuneration Committee and determining remuneration
    policy	A-3
	4.	Principles for formulating a remuneration package	A-3
	 	4.1    Remuneration package composition	A-3
	 	4.2    Salary, accompanied social
    benefits	A-4
	 	4.3    Performance based cash grants	A-5
	 	4.4    Equity based remuneration	A-6
	 	4.5    Personal liability protections
    and reduction of personal risk	A-7
	 	4.6    Vehicle, telephone and reimbursement
    of expenses	A-8
	 	4.7    Advance notice and retirement
    grant	A-8
	5.	Comparative Information	A-11
	 	5.1    External comparison between
    the company and other companies	A-11
	 	5.2    Internal comparison (within
    the company)	A-11
	 	5.3    Desirable range of the ratio
    in determining the remuneration for officers	A-12
	6.	Considerations for granting remuneration, which
    are examined with respect to each of the officers	A-14
	7.	The company’s policy with regard to existing
    agreements	A-14
	8.	Validity of the Remuneration Policy	A-15
	9.	Miscellaneous	A-15
	10.	Appendix A - description of positions occupied in
    the company	 

 

    A-1

     

    

 

Remuneration
Plan for officers of

BiondVax
Pharmaceuticals Ltd.

(the
“Company”) for the years 2018-2021

 

		1.	General

 

The
Company believes that its success depends on, among other things, the recruitment and preservation of high-quality human capital. Therefore,
the Company sees great importance in keeping its competitive status among employers by preserving high-quality personnel in the Company
and creating appropriate incentives which would help promote its goals.

 

This
remuneration policy regulates the Company’s policy regarding the remuneration for officers in the Company, its components and the
considerations by which it was determined. Its purpose is to strengthen the feeling of solidarity among officers with the Company, its
needs and operations, and to increase satisfaction and motivation - all that without taking unreasonable short term risks.

 

This
remuneration policy assembles and regulates the remuneration terms officers will be entitled to while in office, including the permanent
remuneration, the variable remuneration, performance based grants, entitlement for exemption and indemnification documents, inclusion
in the insurance policy and retirement grants.

 

The
remuneration policy was outlined according to the present needs of the Company, and those foreseen by the Company for the near future,
while taking into account the following considerations:

 

	 	1.1.	Promoting the Company’s
    goals, its work plan and its long term policy;
	 	 	 
	 	1.2.	Creating appropriate incentives
    for the Company’s officers while taking into account, among other things, the Company’s risk management policy;
	 	 	 
	 	1.3.	The size of the Company,
    its profitability, and the nature of its operations;
	 	 	 
	 	1.4.	Recruitment and preservation
    of executives, leading professionals and experts in order to continue the development of the Company’s businesses and its business
    success.
	 	 	 
	 	1.5.	Desirable contribution
    from officers to achieve the Company’s long term goals.

 

		2.	About
the company and its business environment

 

The
Company is a public company engaged in the field of biomed, a field which is characterized by increased competitiveness and a relatively
large number of companies engaged in it, including large international companies.

 

    A-2

     

    

 

		3.	The
Remuneration Committee and determining remuneration policy

 

	 	3.1.	Serving on the Remuneration Committee at the time of
    initial approval of the renumeration policy:

 

	 	(1)	Ruth Ben Yakar, External Director.
	 	 	 
	 	(2)	Morris Laster, External Director.
	 	 	 
	 	(3)	Michal Marom Brikman, Independent Director Committee
    Chair. 

 

The
remuneration policy was formulated by the Company’s Remuneration Committee as part of its deliberations on July 30th, 2016. The
Company’s Board of Directors discussed the recommendations of the Remuneration Committee on August 6th, 2013. The remuneration
policy was approved by the Remuneration Committee and the Company Board of Directors on December 3rd, 2013. The shareholders meeting
approved the remuneration policy on January 16th, 2014. The Remuneration Committee and the Company’s Board of Directors and shareholders
approved an update to the remuneration policy in 2018, and a further update to the renumeration policy was approved by Remuneration Committee
and the Company’s Board of Directors in December 2019, which is now brought before the general meeting for its approval.

 

During
the deliberations of the Remuneration Committee and the Company’s Board of Directors meeting, the members were presented with internal
and external comparative data, which are detailed below.

 

		4.	Principles
for formulating a remuneration package

 

Detailed
below are the Company’s guiding principles regarding all the components of the remuneration package offered to Company officers:

 

	 	4.1.	Remuneration package composition:

 

The
composition of the offered remuneration package for the Company officers will include all or part of the following components:

 

	 	a.	Salary, including accompanied
    social benefits (hereinafter: the “Permanent Salary”);
	 	 	 
	 	b.	Performance based cash grants;
	 	 	 
	 	c.	Equity based remuneration;
	 	 	 
	 	d.	Personal liability protections and reduction of personal
    risk;
	 	 	 
	 	e.	Vehicle, telephone and reimbursement of expenses;
	 	 	 
	 	f.	Advance notice and retirement grants;

 

When
a remuneration package for an officer is approved, the Remuneration Committee and the Company’s Board of Directors will examine
each of these criteria and the total cost of employment against the standards set in this plan.

 

    A-3

     

    

 

	 	4.2.	Salary, accompanied social benefits

 

	 	(a)	The salary in the Company
    is determined with respect to accepted parameters of the market in which the Company is engaged, with respect to other companies
    with similar size and development stage, and with respect to the salary of other employees of the company and of its officers.
	 	 	 
	 	(b)	This salary will be paid
    in cash every month as a wage or in exchange for services provided, according to the nature of the connection with the officer, and
    will be updated from time to time according to the remuneration policy.
	 	 	 
	 	(c)	The salary will be determined
    according to the time invested for performing the officer’s function in the Company.
	 	 	 
	 	(d)	The salary will be determined
    during a negotiation process at the beginning of the officer’s employment in the Company. The negotiation will be conducted
    by the officer’s direct supervisor, and in the case of the Company’s CEO, it will be conducted by a team comprised of
    two board members, one of whom is the Chairman of the Board. The salary is determined from a range, which is defined and approved
    in advance, according to the provisions set in this remuneration plan.

 

Officers,
subject to the remuneration policy, have a senior management role, as defined in the Hours of Work and Rest Law, 5711-1951 (hereinafter:
“Hours of Work and Rest Law”) and hold a position of trust. Therefore, the Hours of Work and Rest Law will not apply
to an officer regarding remuneration for overtime or during the weekly time of rest.

 

	 	(e)	Accompanied social benefits

 

To
the extent that the Company is the officer’s employer, the Company will include the following components as part of the remuneration
package offered to officers:

 

	 	(1)	The Company will bear the cost which equals to 13.33%
    of the salary for the managers insurance and for a compensation fund to be chosen by the officer, and a sum which equals 0.25% of
    his salary for incapacity to work insurance;
	 	 	 
	 	(2)	The Company will set aside, every month, a sum which
    equals to 7.5% of the officer’s salary for a study fund and will deduct an additional 2.5% from his salary for that purpose.
	 	 	 
	 	(3)	Vacation days: as a rule, senior Company officers are
    entitled to 18 annual vacation days.
	 	 	 
	 	(4)	Officers will be entitled for sick days and for Convalescence
    Allowance according to the law.

 

With
regard to an officer whose engagement agreement with the Company does not establish employee-employer relations, the Company will be
authorized to pay a supplement to his salary despite the mentioned expenses, up to the maximum cost to the employer, which includes the
social benefits detailed above.

 

    A-4

     

    

 

	 	4.3.	Performance based cash grants

 

In
addition to the permanent salary, the remuneration package may include cash remuneration for meeting measurable goals while evaluating
the officers’ performances from a long-term perspective. This remuneration component is designed to remunerate the officers for
personal accomplishments, which reflect their contribution to the achievement of the Company’s goals. The grant will be given to
the officer provided that there is an increase in the Company’s cash balance (i.e. raising funds, bonus, advance payment etc.).

 

	 	(a)	Measurable performance based grants

 

When
the officer’s remuneration conditions are approved, the Remuneration Committee and the Company’s Board of Directors are authorized
to define measurable goals, which may also include as follows: a technological breakthrough (beginning of phase 3 trials by the Company
or through a third party) and/or a marketing breakthrough (signing a cooperation agreement for marketing the Company’s products,
which its economic value exceeds 10 million dollars cumulatively over the period of the agreement); merging the Company and/or selling
a substantial part of the Company (selling over 25% of the Company’s operation and/or transferring the control of the Company and/or
allotting its securities, which will constitute the Company’s controlling block) according to the Company’s value, which
exceeds 10 million US dollars; and/or signing a substantial agreement with the Company1 and/or raising funds of at least 7
million US dollars in the United States, and these will be determined from a long-term perspective of the Company’s goals. This
grant will be derived from the size of the transaction regardless of the permanent salary.

 

In
any event, the total annual budget for officers’ grants will be determined according to a calculation of the total maximum grants
of all of the Company officers up to a maximum of 2% of the sale of its assets, or of the substantial agreement’s worth or of the
issuance’s value, and up to a maximum of NIS 50 million for each of the officers2.

 

Before
the performance based grant payment will take place in practice, it will be brought before the Remuneration Committee to be examined
based on the data presented by the Company’s management.

 

The
officer will return to the Company the performance based grant which he received, if decided that this component was paid to him based
on data which was mistaken and/or newly presented in the company’s financial reports.

 

	1	An agreement
    (or series of agreements) whose worth to the Company exceeds 10 million US dollars (that is the actual value which the Company would
    gain).
	2	For example, under the
    circumstances in which the officer will be paid a bonus which amounts to 2% of the sale of its assets (the maximum sum as described
    above) the agreement or the series of agreements will amount to NIS 2,500,000,000.

 

    A-5

     

    

 

	 	(b)	Annual grant (under
    discretion):

 

The
Remuneration Committee and the Company’s Board of Directors have the authority to grant an officer an annual grant, which amounts
to up to twelve monthly salaries.

 

A
prerequisite for distributing an annual grant in the Company for its operations during a specific calendar year is the Company’s
achievement of predetermined milestones or any other decision made by the Company’s Board of Directors that year. In addition,
part of the annual grant for meeting the Company’s revenue target, for the year subject of the grant.

 

	 	4.4.	Equity based remuneration

 

Securities
remuneration at adequate maturity conditions and exercising price supports the harnessing of the officer to the Company’s success,
in the absence of an immediate cash flow cost to the Company.

 

The
Company will maintain a securities remuneration plan according to article 102 or article 3 (i) of the income tax ordinance and/or other
taxation provisions which apply to the company and/or its employees according to the territory in which they operate.

 

Officers,
including external directors, will be granted with option or restricted share unit (“RSU”) grant letters (“Grant
Letters”) according to the share option plan adopted by the Company, and these will be deposited with a trustee according to
the requirements of the law.

 

Options
granted under the Grant Letters, granted by the Company will be exercisable to American Depositary Shares of the Company, or ADSs, in
exchange for paying a price, which equals to no less than 130% of the average closing rate of the Company’s ADSs on the Nasdaq
Capital Market at the end of 30 trading days that preceded the Company’s Board of Directors’ decision regarding the granting
of Grant Letters. The exercise price shall be adjusted in accordance with the existing ADS-ration that is 1:40.

 

The
RSUs and options granted by the Company will mature according to the Company’s option plans. However, the Remuneration Committee
is authorized to decide that in addition to these maturity provisions, the Grant Letters will be exercisable only if certain goals which
will be determined by the Remuneration Committee and the Company’s Board of Directors prior to their granting, will be met.

 

In
addition, the Company’s Board of Directors is authorized to decide on a reduction of the equity based remuneration, if it finds
that there are financial considerations at the Company level, or specific considerations relating to the officer, which justify the mentioned
reduction.

 

    A-6

     

    

 

The
Grant Letters maturity period will be no less than 3 years, until the full maturity of the Grant Letters. In addition, the maturity period
will not be accelerated due to unusual events in the Company, excluding a change of control. It is hereby made clear that under the circumstances
of a change of control in the Company, the Grant Letters will mature automatically.

 

The
Grant Letters expiry date will not exceed 10 years from the date of the grant and will not be shorter than 5 years after their maturity.

 

The
officer will return to the Company the equity based remuneration he received, if it was decided that it was granted to him based on data
which was mistaken and/or newly presented in the Company’s financial reports.

 

The
Company shall not grant its officers and employees RSUs or options during a specific year that exceed 10% of the issued and outstanding
capital of the Company.

 

In
addition, subject to the provisions of any law, the Company will be authorized to grant members of the Company’s Board of Directors,
including the Company’s external directors, but not including the chairman of the board, maximum options amount that is equal,
in aggregate, to 2% of the issued and outstanding capital of the Company, which will mature over a period of 3 years and at an exercise
price which equals to 130% of the average closing rate of the Company’s ADSs on the Nasdaq Capital Market stock exchange at the
end of 30 trading days that preceded the Company’s Board of Directors’ decision regarding the granting of the Grant Letters.

 

	 	4.5.	Personal liability protections and reduction of
    personal risk

 

Since
the Company officers, including directors, CEOs and other senior executives, may be exposed to lawsuits due to actions they performed
as part of their duties, with the intention of protecting officers and enabling them to act freely in the interests of the Company and
the promotion of its goals, without fear of lawsuits, and out of desire to attract high quality candidates to serve as Company officers,
the Company acts according to the provisions of the law and protects the Company officers, for operating as Company officers, by granting
indemnification documents and insurance policy coverage.

 

	 	(a)	Insurance: All the Company
    officers will be entitled to be included in an officers’ liability insurance policy according to the provisions of the law
    (Israeli and/or American). The Company will be authorized to enter into an agreement with insurers in order to secure a maximum annual
    coverage under officers’ liability insurance policies equal to the greater of (a) $50 million, and (b) 10% of the Company’s
    market value (based on the average closing share price of the Company’s American Depositary Shares on Nasdaq during the period
    from 60 calendar days to 30 calendar days prior to expiration of the previous officers’ liability insurance policies).

 

    A-7

     

    

 

	 	(b)	Indemnification documents:
    company officers will be entitled to indemnification documents as will be customary in the Company from time to time, to the fullest
    extent permitted by law (Israeli and/or American) and the Company’s articles of association. The extent of the overall indemnification
    for all the Company officers due to an event, will not exceed 25% (twenty five percent) of the Company’s equity in US dollars
    at the time of granting the indemnification in practice, in addition to the sums received, if received, from the insurance company
    as part of the insurance which the Company entered into an agreement to acquire. The Indemnification document will include the required
    extensions for raising funds in the United States and/or for any research or commercial activity in the United States and Europe.

 

	 	(c)	Exemption documents: Company
    officers will be entitled to exemption documents to the fullest extent permitted by law (Israeli and/or American).

 

	 	4.6.	Vehicle, telephone and reimbursement of expenses

 

	 	(1)	The Remuneration Committee
    has the authority to recommend the Company’s Board of Directors, and the Company’s Board of Directors will authorize
    the Company to provide a car at the disposal of the officer, and to bear all of its maintaining expenses including licensing expenses,
    insurance, gas and repairs, and the full tax for this benefit.

 

	 	(2)	The Remuneration Committee
    has the authority to recommend the Company’s Board of Directors, and the Company’s Board of Directors will authorize
    the Company to provide a cellular phone at the disposal of the officer, and to bear all of the expenses involved in its possession
    including the full tax for this benefit.

 

	 	(3)	The Company will return
    to the officer all reasonable expenses he paid to third parties for the purpose of carrying out his duties according to the Company’s
    policy in that matter.

 

	 	(4)	Meals - the officer would
    be able to choose a payment arrangement for meals during working hours, determined by the Company’s regulations concerning
    all the Company employees.

 

	 	4.7.	Advance notice and retirement grant

 

	 	(a)	The Company officer will
    be entitled to an advance notice period at the end of his employment, which will not exceed the range between two and nine months
    as determined by the employment agreement between the Company and the officer, and as will be approved by the Company’s Board
    of Directors according to the Remuneration Committee’s recommendation.

 

    A-8

     

    

 

	 	(b)	In any case, the advance
    notice period will not exceed:
	 	 	 
	 	 	2 months for an officer
    who worked up to two years in the Company.
	 	 	3 months for an officer
    who worked up to three years in the Company.
	 	 	4 months for an officer who worked up to five years
    in the Company.
	 	 	4 months for an officer who worked five years or more
    in the Company.

 

The
CEO or/and the First Deputy CEO (Vice President) for International Business Development will be entitled to an advance notice period
of up to 9 months, regardless of the time they were employed.

 

	 	(c)	At the request of the Company,
    during the advance notice period the officer will commit to fulfilling his duties in the company, unless he would be relieved of
    this commitment by the Company’s Board of Directors. For this period, the officer will be entitled to the continuation of all
    the terms of service and employment as determined with him according to the employment agreement.

 

	 	(d)	The officer’s terms
    of service and employment will include a provision by which the Company is authorized to fire the officer without giving him any
    notice in cases, which deny eligibility for severance pay according to the law, including: (a) Conviction of an offense involving
    moral turpitude; (b) An officer who will conduct himself in a disloyal and/or unreliable and/or dishonest manner in his relations
    with the Company and/or while carrying out actions on its behalf and/or will harm the Company’s reputation; (c) in case the
    officer will breach the confidentiality duty towards the Company and/or his duty to protect the Company rights which were developed
    due to or as part of his work at the Company; (d) Any other case in which the Company is legally entitled to refrain from granting
    severance pay.

 

	 	(e)	The Company officer will
    be entitled to a retirement grant at the end of his employment, which will not exceed the range between two and six months as determined
    by the employment agreement between the Company and the officer, and as will be approved by the Company’s Board of Directors
    according to the Remuneration Committee’s recommendation.

 

	 	(f)	The maximum amount of the
    retirement grant will be determined according to the scope detailed below:
	 	 	 
	 	 	3 months for an officer
    who worked up to five years as the Company’s CEO.
	 	 	6 months for an officer
    who worked five years or more as the Company’s CEO.
	 	 	2 months for an officer
    who worked up to five years as Deputy CEO in the Company.
	 	 	3 months for an officer
    who worked five years or more as Deputy CEO in the Company.

 

    A-9

     

    

 

	 	(g)	A prerequisite for receiving the retirement grant is
    that the officer will meet the following requirements:

 

	 	(a)	His employment period in
    the Company will be of no less than two years.
	 	 	 
	 	(b)	During the time of his
    employment, he significantly contributed the promotion of the Company’s businesses.
	 	 	 
	 	(c)	Termination of the officer’s
    employment was not due to any circumstances which justify the denial of severance pay, according to the Remuneration Committee’s
    discretion.

 

	 	(h)	The CEO will recommend
    paying the retirement grant. In the case of a retiring CEO, it will be recommended by the Chairman of the Company’s Board of
    Directors.
	 	 	 
	 	(i)	The retirement grant will
    be paid at the time when the employer-employee relationship ended, and will amount to the sum determined by his employment agreement,
    and was approved by the Company’s Board of Directors according to the Remuneration Committee’s recommendation.
	 	 	 
	 	(j)	There will be no increase
    to the retirement grant or to any other payment around the time of retirement for non-competitiveness on behalf of the officer after
    his retirement.

 

    A-10

     

    

 

		5.	Comparative
Information

 

	 	5.1.	External comparison between the Company and other
    companies

 

During
the course of discussion on grants and remunerations to the Company’s various organs, the Company’s management will present
the Remuneration Committee with comparative data regarding the permanent salary, the annual grants, the equity based remuneration, and
rest of the officers’ service terms which holders of similar positions are entitled to in companies which meet the following requirements,
at the time the remuneration policy is drafted:

 

	 	(a)	Companies which are engaged in the field and have similar
    characteristics to the Company’s operations.

 

	 	(b)	Companies whose market value or their level of sales
    are close to those of the Company.

 

	 	(c)	Companies which employ manpower of a size similar to
    that of the Company.

 

The
comparison will be made while taking into account the following factors:

 

	 	(a)	Size of the remuneration
    package with respect to the selected reference group.

 

	 	(b)	Performance level according
    to economic performance measures which were chosen to fit the nature of the Company’s operations.

 

	 	(c)	The difference between
    the Company’s relative position, in terms of size and level of development of the remuneration package compared with similar
    companies according to the aforementioned criteria, and its position in terms of performance measures and stock performance of similar
    companies according to the aforementioned criteria over a period of at least the recent three years, and the degree of lack of concordance
    between them.

 

The
determined remuneration policy will befit the aspects in the aforementioned comparisons. In case of an inconsistency, the remuneration
policy will be updated and adjusted in terms of its size and its components.

 

Prior
to the aforementioned remuneration policy’s approval, the members of the Remuneration Committee and the members of the Board were
presented with comparisons to other companies in the market which the Company is engaged in with a similar size and development stage,
as well as with respect to the salary of the rest of the Company employees and officers. The salary ranges for senior officers as detailed
in this plan were devised, among other things, while examining the comparative data, as aforementioned.

  

	 	5.2.	Internal comparison (within the Company)

 

During
the course of discussion on grants and remunerations of the Company’s various organs, the CFO presented a salary comparison between
Company officers and holders of other positions in the Company, including contract workers employed by the Company.

 

The
Company’s estimates, regarding the influences of the wage gaps between holders of different positions in the Company on the working
relations in the Company, were also presented.

 

The
Remuneration Committee and the Board also examined the ratio between the terms of service and employment, the average and median salary
and the average and median employment cost of Company officers and those of the rest of the Company employees, and found it to be appropriate
and reasonable given the circumstances.

  

    A-11

     

    

 

	 	5.3.	Range of the ratio in
    determining the remuneration for officers

 

Below
is the optimal composition of the remuneration package and the ratio between the permanent component and the variable component:

 

	 	 	CEO
    and Director	 	 	Chief
    Technology Officer	 	 	Chief
    Operating Officer	 	 	Chief
    Financial Officer	 	 	First
    Deputy CEO for Business Development\ Vice President	 	 	Chairman
    of the Board	 	 	External
    Director	 	 	Other
    Directors	 
	Permanent Salary	 	 	-63-100	%	 	 	-63-100	%	 	 	-63-100	%	 	 	 	 	 	 	0-100	%	 	 	0-100	%	 	 	0-100	%	 	 	0-100	%
	Variable Remuneration14	 	 	0-37	%	 	 	0-37	%	 	 	0-37	%	 	 	 	 	 	 	0-100	%	 	 	0-100	%	 	 	0-100	%	 	 	0-100	%

 

	 	(b)	The table below reflects
    the range of the monthly base salary of Company officers (in thousands of NIS):

 

	Rank	 	Minimum	 	 	Maximum	 
	CEO	 	 	50	 	 	 	83	 
	Deputy CEO	 	 	14.5	 	 	 	67	 
	First Deputy CEO / Vice President for International
    Business Development	 	 	38	 	 	 	67	 

 

    A-12

     

    

 

	 	(c)	The scope of officers’
    positions will be no less than 80% (apart from directors). However, given the degree of trust and independence which characterize
    the positions of senior Company officers, the foregoing salary will apply to every scope of position between 80% and 100%.

 

	 	1)	Chairman of the Board of Directors

 

	 	 	The salary of the Chairman
    of the Board of Directors will be composed of a permanent salary, a variable performance based salary and an equity based salary.

 

	 	2)	Directors

 

	 	 	External directors and
    directors that are considered independent under Israeli law will be paid a uniform remuneration according to the Companies Regulations
    (provisions regarding the remuneration of expenses for external directors), 5760 - 2000, and will not exceed the maximum remuneration
    permitted according to this plan.

 

	 	 	Other directors will not
    be entitled to a salary, except for cases in which they are employed by the Company in other positions, in addition to being directors,
    which then their salary will be determined as is customary in the Company for similar positions. Directors will be entitled to a
    variable performance based salary and to an equity based salary.

 

	 	3)	CEO

 

The
CEO’s salary will be composed of a fixed salary, a variable performance based remuneration and an equity based remuneration. The
performance based component will be based on measurable performances to be determined by the Remuneration Committee and the Board of
Directors, for an amount which shall not exceed 12 of the CEO’s monthly salaries. With regard to the equity based component, the
Board of Directors will be able to condition the maturity of the options on meeting the goals determined at time the options within the
Grant Letters were granted.

 

	 	4)	Officers (who are not directors or the CEO)

 

The
salary of officers will be composed of a permanent salary, a variable performance based salary and an equity based salary. The grants
will be based on quantitative and qualitative goals. Personal goals will be determined for every officer, and these goals will be derived,
among other things, from the Company’s strategic work plan and from the work plan of the division which the officer manages. The
goals for receiving the grant to which the officer is entitled to, will be determined by the Remuneration Committee and the Board once
every year at the time the annual work plan is approved subject to article 4.3 (a) above.

 

    A-13

     

    

 

		6.	Considerations
for granting remuneration, which are examined with respect to each of the officers

 

At
the time of the approval of the Company’s entering into an employment agreement with an officer, the Company will examine, among
other things, the following criteria, with respect to every officer:

 

	 	6.1.	Education, qualifications, expertise, professional
    experience, accomplishments.

 

	 	6.2.	Position, his domains of responsibility, previous salary
    agreements.

 

	 	6.3.	The relation between the terms of service and employment
    to the salary of the rest of the Company’s employees, average salary and median salary.

 

	 	6.4.	Variable terms of service
    (performance based remuneration and equity based remuneration), and creating an appropriate incentive for fulfilling the company’s
    goals;

 

	 	6.5.	Influence of the Company’s business results and
    the personal contribution of each officer for securing these results.

 

		7.	The
company’s policy with regard to existing agreements

 

It
is the Company’s opinion that a change to an officer’s terms of service, including to the remuneration conditions may adversely
affect the working relations in the company and the commitment of Company officers.

 

Therefore,
and with regard to the conditions of serving officers included in the agreement which its conditions and components as will be examined,
from time to time as part of the trust and fiduciary duties of the Company’s relevant organs, will be found to be reasonable and
fair, will not be changed, and the agreement with the officer which was signed prior to the determination of the Company’s remuneration
policy will continue to apply.

 

With
regard to granting a grant to an officer according to an agreement which was signed prior to the determination of the Company’s
remuneration policy, whose granting is not a matter of discretion according to the terms of the agreement, the Company would see the
grant as one whose approval procedure ended, and therefore, there is no need to approve the grant according to the remuneration policy
as mentioned.

 

    A-14

     

    

 

Regarding
a grant which is subject to discretion, the Company would see the grant as one whose approval procedure is yet to be ended, and therefore,
the grant must be approved according to the remuneration policy as mentioned.

 

An
agreement with an officer which will be signed after the adoption of the remuneration policy will be examined from time to time, and
will be adjusted to changes, if the remuneration policy will be changed, and the agreement will be also examined from time to time according
to the Company’s capabilities and needs.

 

		8.	Validity
of the Remuneration Policy

 

The
remuneration policy will be valid for three years from the time it was approved by the general meeting. The Company’s Board of
Directors will hold a discussion every year regarding the remuneration policy and will examine the remuneration policy from time to time,
at its discretion. In cases where there have been significant changes to the circumstances which brought forth the determination of the
Company’s remuneration policy, the Company’s Board of Directors will act to bring about change. Any change to the remuneration
policy made by the Board will require the approval of the Remuneration Committee. In addition, a decision regarding the restart of the
remuneration plan, after 3 years, will require the approval of the Remuneration Committee, the Company’s Board of Directors, and
the approval of the general meeting of the Company’s shareholders.

 

		9.	Miscellaneous

 

	 	9.1.	The Company’s Board
    of Directors will examine the provisions of the remuneration policy and the need for adjusting the remuneration policy according
    to the considerations detailed in section 1 above, from time to time at its discretion. Any change, including addition or deletion
    in one of the sections will be approved by the Company’s Remuneration Committee, the Company’s Board of Directors and
    the general meeting of the Company’s shareholders according to the requirements of Amendment No. 20 to the Companies Law.

 

	 	9.2.	The board is authorized
    to deduct the remuneration conditions mentioned in this remuneration policy at its full and exclusive discretion, if found that the
    circumstances justify such a deduction.

 

	 	9.3.	The Remuneration Committee
    and the Board will be authorized to grant officers grants based on criteria which are not measurable, and which will constitute an
    insubstantial part of the total remunerations given to the officer while taking into account the officer’s contribution to
    the Company subject to article 4.3 above.

 

	 	9.4.	In any change to the service
    terms which was not brought to the approval of the general meeting (change to the CEO’s terms of service or other exceptions
    according to the provisions of the law) the extent of the annual change in all the remuneration’s components will not exceed
    10% of the salary.

 

	 	9.5.	Officers’ employment
    agreements will include provisions aimed at protecting the Company’s intellectual property rights as well as confidentiality
    and non-competitiveness clauses, and their wording will be adjusted according to the relevant officer, and out of respect to his
    position and importance in the Company.

 

 

A-15

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