Document:

Document

Exhibit 4.5

[###] Certain information in this document has been omitted pursuant to Regulation S-K, Item 601(a)(6) because it contains personally identifiable information.

THIS WARRANT (THIS “WARRANT”) AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
						
		Date of Issuance: June 21, 2021
		
		
		Number of Warrant Shares: As set forth on Exhibit A
		(subject to adjustment)

Riskified Ltd. 
Share Purchase Warrant
Riskified Ltd., a company incorporated under the laws of the State of Israel (the “Company,” and which shall include any corporation or other entity that succeeds to the Company’s obligations under this Warrant, whether by permitted assignment, by merger or consolidation or otherwise), for value received, hereby certifies that Wayfair LLC, a Delaware limited liability company, or its registered assigns (the “Registered Holder”), is entitled, subject to the terms set forth below and including the terms relating to vesting and exercise set forth on Exhibit A attached hereto, to purchase from the Company, at any time after the date hereof and on or before the Expiration Date (as defined in Section 8) the number of Company’s ordinary shares (the “Ordinary Shares”), or following the consummation of an Public Company Event (as defined below) the class of shares offered to, or that will be held by the public following, the Public Company Event, in each case at a price of $0.01 per share. The shares purchasable upon exercise of this Warrant, and the purchase price per share, each as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as the “Warrant Shares” and the “Purchase Price,” respectively.
This Warrant is issued pursuant to, and is subject to the terms and conditions of, the amended SaaS Agreement between Riskified, Inc., a wholly owned subsidiary of the Company, and Wayfair LLC dated as of June 27, 2021 (the “Agreement”) and constitutes part of the consideration thereunder.
Concurrently with the execution of this Warrant, and as a condition to the issuance of this Warrant to the Registered Holder, the Registered Holder shall execute and deliver to the Company: (i) an Irrevocable Proxy and Power of Attorney, in the form attached hereto as Exhibit B (the “Proxy”); and (ii) an irrevocable and unconditional waiver of preemptive, first refusal, co-sale and other similar rights, in the form attached hereto as Exhibit C (the “Waiver”). For the avoidance of doubt, the Proxy and the Waiver, shall each automatically terminate upon the earlier of (a) the closing of a Public Company Event (as defined below); or (b) at the request of an acquirer of the Company or its shares in an Acquisition, as defined in the Company’s amended and restated articles of association, as may be amended from time to time (the “Articles”), in which the Warrant Shares are sold to such acquirer.
The term “Public Company Event” refers to any of the follow:
(i)     an “IPO” as such term is defined in the Articles;

(ii)    a “SPAC Transaction”, which shall mean any business combination pursuant to which the Company is merged into, or otherwise combines with, a special purpose acquisition company (a “SPAC”) listed on a “national securities exchange”, or a subsidiary of such SPAC, and the shares of capital stock of the Company outstanding immediately prior to such transaction continue to represent, or are converted into or exchanged for shares of capital stock (or securities convertible into or exchangeable for shares of capital stock) that represent, immediately following such combination, a majority, by voting power, of the capital stock of (A) the surviving or resulting corporation; or (B) if the surviving or resulting corporation is a wholly owned subsidiary of another corporation immediately following such combination or consolidation, the parent corporation of such surviving or resulting corporation; or
(iii)    a “Direct Listing”, which shall mean the registration of a class of the Company’s equity securities under Section 12(b) of the Exchange Act and the direct listing on a publicly traded exchange as a result of or following which the equity securities of the Company shall be publicly held.
The following is a statement of the rights of the Registered Holder and the conditions to which this Warrant is subject, and to which the Registered Holder, by the acceptance of this Warrant, agrees:
1.Number of Shares. Subject to the terms and conditions hereinafter set forth, including on Exhibit A attached hereto, the Registered Holder is entitled, upon surrender of this Warrant, to purchase from the Company the number of Warrant Shares (subject to adjustment as provided herein) set forth in Exhibit A attached hereto.
2.Exercise.
a.Method of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, at any time or from time to time on any day on or before the Expiration Date, subject to the terms and conditions set forth on Exhibit A attached hereto, by delivering a purchase/exercise form in the form appended hereto as Exhibit D duly executed by such Registered Holder or by such Registered Holder’s duly authorized attorney, which may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other electronic transmission method, along with a copy of this Warrant.
b.Payment. Unless the Registered Holder is exercising this Warrant pursuant to a Net Issue Exercise in the manner specified in Section 2(d), the Registered Holder shall also, as a condition to any exercise of this Warrant, deliver to the Company payment in full for the Purchase Price payable in respect of the number of Warrant Shares purchased upon such exercise. The Purchase Price may be paid by cash, check or wire transfer.
c.Partial Exercise. Upon a partial exercise of this Warrant, this Warrant shall be cancelled and replaced with a new Warrant (the “Replacement Warrant”) on terms identical to those contained in this Warrant, except that the maximum number of Warrant Shares issuable upon exercise shall be equal to the maximum number of Warrant Shares issuable under this Warrant (as set forth above) reduced by (i) the aggregate number of Warrant Shares set forth on all purchase/exercise forms delivered to the Company pursuant to Section 2(b) prior to the date of such Replacement Warrant, or (ii) the aggregate number of Warrant Shares calculated pursuant to Section 2(d) in connection with all purchase/exercise forms delivered to the Company pursuant to Section 2(d) prior to the date of such Replacement Warrant, as applicable.
d.Net Issue Exercise. 
i.In lieu of exercising this Warrant and delivering payment in the manner provided in Section 2(b), the Registered Holder may elect to exercise all or any portion of this Warrant by net issue exercise by giving notice of such election on the purchase/exercise form appended hereto as Exhibit D duly executed by such Registered Holder or by such Registered Holder’s duly authorized attorney, which may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., 

www.docusign.com) or other electronic transmission method, along with a copy of this Warrant, in which event the Company shall issue to such Registered Holder a number of Warrant Shares computed using the following formula:
									
		X=	Y (A - B)
      A

			
		where	 
			
		X=	the number of Warrant Shares to be issued to the Registered Holder.
			
		Y=	the number of Warrant Shares purchasable under this Warrant as set out on the purchase/exercise form.
			
		A =	the fair market value of one Warrant Share on the date of such net issue exercise.
			
		B =	the Purchase Price.

ii.For purposes of this Section 2(d), the “fair market value of Warrant Share on the date of net issue exercise” shall mean with respect to each Warrant Share:
(A)if the exercise is in connection with consummation of an IPO, then the fair market value per Warrant Share shall be the initial “Price to Public” per share specified in the final prospectus with respect to the IPO, 
(B)if the exercise is in connection with a SPAC Transaction, the fair market value per Warrant Share shall be the per share price at which Company’s securities are purchased and sold in connection with such SPAC Transaction. 
(C)if this Warrant is exercised following a Public Company Event (including a direct listing), then the fair market value shall equal the average of the closing prices of the Company's Ordinary Share (or the shares offered to the public in the Public Company Event), as reported on the principal stock exchange on which the Company's shares are traded at such time for the thirty (30) consecutive trading days immediately preceding the exercise of the Warrant.
(D)If the exercise is in connection with an Acquisition, the fair market value per Warrant Share shall be deemed to be the value received by the holders of Ordinary Shares (or, following a Public Company Event, the shares listed on a “national securities exchange”) pursuant to such acquisition.
(E)if the Warrant Shares are not traded on the over-the-counter market, an exchange or an electronic securities market, the fair market value shall be the price per Warrant Share that the Company could obtain from a willing buyer for Warrant Shares sold by the Company from authorized but unissued Warrant Shares, as such prices shall be determined by an independent third-party valuation firm within the prior twelve (12) months approved in good faith by the Company’s Board of Directors (the “Board”).
e.Issuance of Shares. Upon exercise of the Warrant, in whole or in part, and as a condition of such exercise, the Registered Holder shall become (if not already) party to that certain Amended and Restated Investors’ Rights Agreement, dated October 28, 2019, by and among the Company and the other parties named therein, as amended from time to time (the “Investors’ Rights Agreement”), by delivering a joinder in the form appended hereto as Exhibit F duly executed by such Registered Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within ten (10) business days thereafter, the Company will, at its expense, cause to be issued in the name of, and delivered to, the Registered Holder:

i.certificate or certificates for the number of Warrant Shares to which such Registered Holder shall be entitled, unless the Company’s shares are uncertificated; 
ii.in case such exercise is in part only, a Replacement Warrant as provided in Section 2(c); and if applicable, a check payable to the Registered Holder for any cash amounts payable as described in Section 12.
f.Automatic Exercise. If this Warrant remains outstanding as of the Expiration Date then, at such time, this Warrant shall, automatically and without any action on the part of the Registered Holder, be exercised pursuant to Section 2(d) effective immediately prior to the termination of this Warrant pursuant to Section 8, unless the Registered Holder shall have earlier provided written notice to the Company that the Registered Holder desires that this Warrant terminate unexercised. If this Warrant is automatically exercised pursuant to this Section 2(f) the Company shall notify the Registered Holder of such exercise as soon as reasonably practicable.
g.Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been made upon the satisfaction of all of the conditions set forth herein. At such time, the person or persons in whose name or names any certificates for Warrant Shares shall be issuable upon such exercise as provided herein shall be deemed to have become the holder or holders of record of the Warrant Shares represented by such certificates.
h.Taxes.  The issuance of the Warrant, and the Warrant Shares upon the exercise of the Warrant, shall be made without the deduction or withholding of any taxes, levies, assessments, imposts, duties or similar charges imposed by any taxing authority (“Taxes”), unless otherwise required by law. To that end, the Company and the Registered Holder shall reasonably cooperate with one another to ensure this Warrant is treated as equity for accounting purposes. If such deduction or withholding is so required, the Company shall pay the amount of such Taxes so imposed to the applicable taxing authority, and shall pay such additional amounts to the Registered Holder so that the Registered Holder receives the net amount after such deduction or withholding that it would have received had no such deduction or withholding been imposed.
3.Adjustments.
a.Share Splits and Dividends. The Purchase Price and the number of Warrant Shares for which this Warrant remains exercisable shall each be proportionally adjusted to reflect any share dividend, share split, reverse share split or other similar event affecting the number of outstanding Warrant Shares.
b.Adjustment for Other Dividends and Distributions. In case the Company shall make or issue, or shall fix a record date for the determination of eligible holders entitled to receive, a dividend or other distribution payable with respect to the Warrant Shares that is payable in (a) securities of the Company (other than issuances with respect to which adjustment is made under Section 3(a) or Section 3(c)) or (b) assets (other than cash) which dividend or distribution is actually made (each, a “Dividend Event”), then, and in each such case, Registered Holder, upon exercise of this Warrant at any time after such Dividend Event, shall receive, in addition to the Warrant Shares, the securities or such other assets of the Company that would have been payable to Registered Holder if Registered Holder had completed such exercise of this Warrant immediately prior to such Dividend Event.
c.Adjustment for Reorganization, Consolidation, Merger. In case of any recapitalization or reorganization of the Company or in case the Company shall consolidate with or merge into one or more other corporations or entities which results in a change of the Warrant Shares (each, a “Reorganization Event”), then, and in each such case, Registered Holder, upon the exercise of this Warrant after such Reorganization Event, shall be entitled to receive, in lieu of the shares or other securities and property that Registered Holder, would have been entitled to receive upon such exercise prior to such Reorganization Event, the shares or other securities or property which Registered Holder, would have been entitled to receive upon such Reorganization Event if, immediately prior to such Reorganization Event, Registered Holder, had completed such exercise of this Warrant, all subject to further adjustment as provided in this Warrant. If after such Reorganization Event the Warrant is exercisable for securities of a corporation or entity other than the Company, then such corporation or entity shall duly execute and deliver to Registered Holder, a supplement hereto acknowledging such corporation’s or other entity’s obligations under this Warrant, and in each such case the terms of this Warrant shall be applicable to the shares or other securities or property receivable upon the exercise of this Warrant after the consummation of such Reorganization Event.

d.No Change Necessary. The form of this Warrant need not be changed because of any adjustment in the Purchase Price or in the number of Warrant Shares issuable upon its exercise.
e.Notice. The Company shall provide prompt notice to the Registered Holder, using commercially reasonable efforts to provide such notice at least 3 business days in advance, of any adjustment made pursuant to this Section 3; provided that, for notice in connection with a Reorganization Event, if providing such notice would cause the Company to violate any contractual or other restrictions that the Company is then subject to with respect to confidentiality of a particular transaction or otherwise, the Company shall only be required to provide to the Registered Holder such form of notice and upon such timing that the Company is required to provide to holders of shares of the same series and class of shares as the Warrant Shares. The Company will also provide information requested by Registered Holder that is reasonably necessary to enable Registered Holder to comply with Registered Holder’s accounting or reporting requirements.
4.Transfers.
a.Unregistered Security. Each holder of this Warrant acknowledges that, as of the date hereof, none of the Company’s securities (including this Warrant and the Warrant Shares) have been registered under the Securities Act, and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Shares issued upon its exercise (or any securities issued by the Company upon conversion or exchange thereof) in the absence of (i) an effective registration statement under the Securities Act as to the sale of any such securities and registration or qualification of such securities under any applicable U.S. federal or state securities law then in effect, or (ii) the Company’s prior written consent following receipt of an opinion of counsel, satisfactory to the Company, that such registration and qualification are not required. Each certificate or other instrument for Warrant Shares issued upon the exercise of this Warrant (and any securities issued by the Company upon conversion or exchange thereof) shall bear a legend substantially to the foregoing effect. The Warrant Shares issuable pursuant to this Warrant shall have the registration rights described in Section 7 hereto.
b.Transferability. Subject to the provisions of Section 4(a) hereof, this Warrant may be transferred and assigned and all rights hereunder are transferable, in whole or in part, only to an affiliate (as defined in Rule 405 under the Securities Act) of the Registered Holder upon surrender of this Warrant with a properly executed assignment (in the form of Exhibit E hereto), which may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other electronic transmission method, and subject to the provisions of Section 4(a) hereof. Except for a transfer and assignment to an affiliate, this Warrant may not be transferred, whether before or after a Public Company Event. Furthermore, and notwithstanding the provisions of Section 4(a) hereof, following the consummation of a Public Company Event, the Warrant Shares may be transferred subject to compliance with any lock-up arrangements imposed by underwriters (subject to the terms of Section 5(e) hereof), and compliance with applicable securities law registration requirements, transfer restrictions and holding periods.
c.Warrant Register. The Company will maintain a register containing the names and addresses of the Registered Holder(s) of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change.
5.Representations and Warranties of the Registered Holder. The Registered Holder hereby represents and warrants to the Company that:
a.Authorization. The Registered Holder has full power and authority to enter into this Warrant. The Warrant, when executed and delivered by the Registered Holder, will constitute a valid and legally binding obligation of the Registered Holder, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

b.Purchase Entirely for Own Account. This Warrant is issued to the Registered Holder in reliance upon the Registered Holder’s representation to the Company, which by the Registered Holder’s acceptance of this Warrant, the Registered Holder hereby confirms, that the Warrant to be acquired by the Registered Holder and the Warrant Shares (and any securities issued by the Company upon conversion or exchange thereof) (collectively, the “Securities”) will be acquired for investment for the Registered Holder’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof.
c.Restricted Securities. The Registered Holder understands that the Securities have not been, and, other than as provided herein, will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Registered Holder’s representations as expressed herein. The Registered Holder understands that unless and until registered the Securities are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Registered Holder must hold the Securities indefinitely unless they are registered with the Securities and Exchange Commission and, if applicable, qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Registered Holder understands that no public market now exists for any of the securities issued by the Company, and that the Company has made no assurances that a public market will ever exist for the Securities.
d.Accredited Investor. The Registered Holder is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.
e.Market Stand-Off Agreement. The Registered Holder agrees that, in connection with an IPO, the Warrant and the Warrant Shares shall be subject to the “lock-up” provisions in Section 1.13 of the Investors’ Rights Agreement or otherwise, and the Registered Holder irrevocably and unconditionally agrees to execute an agreement reflecting Section 1.13 of the Investors’ Rights Agreement or any other lock-up arrangements imposed by underwriters as may be requested by the Company or the managing underwriters at the time of an IPO; provided that any discretionary waiver or termination of the restrictions of any or all lock-up agreements by the Company or the underwriters applicable to the Investors or Holders (as such terms are defined in the Investors’ Rights Agreement) (other than employees or directors of the Company) shall apply to the Registered Holder pro rata; provided further, that, if any such Investor or Holder (other than employees or directors of the Company) is subject to a shorter lock-up period with respect to its lock-up following a Public Company Event (whether due to amendment of the Investors’ Rights Agreement or due to waiver), then such shorter lock-up period and/or more favorable terms shall apply to the Registered Holder.
6.Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to the Registered Holder that:
a.Corporate Power. The Company has full power and authority to execute, deliver and issue this Warrant. The Warrant, when executed and delivered by the Company, will constitute a valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
b.Authorization. All corporate action on the part of the Company, its directors and shareholders necessary for the authorization, execution, issuance, delivery and performance by the Company of this Warrant has been taken.  The issuance of this Warrant by the Company and the consummation of the transactions contemplated herein have all been duly authorized by the Board of Directors of the Company, and, where required, the shareholders of the Company. No consent, waiver or authorization of, or filing with any other person or entity (including without limitation, any governmental authority) is required in connection with any of the foregoing or with the validity or enforceability against the Company of this Warrant, except to the extent any such requisite consent, waiver or authorization of, or filing with any person or entity (including without limitation any governmental authority) has been properly waived or complied with as of the issuance of this Warrant.
c.Reservation of Warrant Shares. The Warrant Shares issuable upon exercise of this Warrant (and any securities issuable by the Company upon conversion or exchange thereof) has been, or will be, duly authorized 

and validly reserved by the Company and when issued in accordance with the provisions of this Warrant against the receipt of the Purchase Price or pursuant to the net issue exercise provision set forth in Section 2(d) hereof will be validly issued, fully paid and non-assessable, and will be free of any taxes, liens, mortgages, charges, security interests, preemptive rights, transfer or other restrictions or other claims or third party’s rights or encumbrances of any nature whatsoever; provided, however, that the Warrant Shares issuable pursuant to this Warrant may be subject to restrictions on transfer under state and/or federal securities laws and the Company’s amended and restated articles of association, as may be amended from time to time (the “Articles”), including the Public Company Articles (as defined below).  The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock such number of securities as will be sufficient to permit the exercise in full of this Warrant.
d.Offering. Subject in part to the truth and accuracy of the Registered Holder’s representations set forth in Section 5 hereof, the offer, issuance and sale of this Warrant is, and the issuance of the Warrant Shares upon exercise of this Warrant (and the issuance of any securities issuable by the Company upon conversion or exchange thereof) will be, exempt from the registration requirements of the Securities Act, and are exempt from the qualification requirements of any applicable state securities laws; and neither the Company nor anyone acting on its behalf will take any action hereafter that would cause the loss of such exemptions.  The execution, delivery and performance of this Warrant do not (i) conflict with or violate any provision of the Articles or Public Company Articles (as defined below), (ii) conflict with or violate any requirement of law or contractual obligation applicable to the Company or (iii) require any action by or in respect of, or filing with, any governmental body, agency or official (except that this Warrant may be filed as an exhibit to a registration statement in connection with a Public Company Event).
e.Charter Documents. The Company has provided the Registered Holder a true and complete copy of (A) the Articles effective as of the date hereof and (B) the Investors’ Rights Agreement; and the Company undertakes to provide the Registered Holder a true and complete copy of the amended and restated articles of association, substantially in the form that the Board contemplates to recommend be adopted by the Company’s shareholders and that will become effective immediately prior to, and contingent upon, the consummation of a Public Company Event (the “Public Company Articles”). The Company shall not by amendment of the Articles or the Public Company Articles or through a reorganization, transfer or sale of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant, but shall at all times in good faith reasonably assist in carrying out of all the provisions of this Warrant and in taking all such action as may be reasonably necessary or appropriate to protect the rights of the Registered Holder under this Warrant against impairment. However, the Company shall not be deemed to have impaired the rights of the Registered Holder (i) if the Articles or the Public Company Articles are amended or waived in a manner that does not (individually or when considered in the context of any other actions being taken in connection with such amendments or waivers) affect the Registered Holder in a manner different from the effect that such amendments or waivers have on the rights of other holders of the same series and class as the Warrant Shares or (ii) in connection with the adoption and the effectiveness of the Public Company Articles; provided, however, that, notwithstanding the foregoing, the Company shall not impose any restrictions on the transferability or alienability of the Warrant Shares following a Public Company Event other than (x) contemplated by this Warrant or (y) contemplated under the Public Company Articles, in each case, without the written consent of the Registered Holder.
7.Registration Rights. The Warrant Shares issuable pursuant to this Warrant shall have registration rights as set forth in Section 1 of the Investors’ Rights Agreement and shall be Registrable Securities as defined therein. The provisions set forth in the Investors’ Rights Agreement relating to such registration rights in effect as of date hereof may not be amended, modified or waived by the Company without the prior written consent of the Registered Holder unless such amendment, modification or waiver affects the rights under the Investors’ Rights Agreement associated with the Warrant Shares in the same manner as such amendment, modification, or waiver affects the rights under the Investors’ Rights Agreement associated with all other shares of the same series and class of Warrant Shares.

8.Termination. This Warrant (and the right to purchase Warrant Shares upon exercise hereof) shall terminate the date that is the seventh (7th) anniversary of the effective date of the SaaS Agreement, as set forth therein (the “Expiration Date”).
9.Notices of Certain Transactions. In case:
a.the Company shall take a record of the holders of its outstanding shares of the same class as the Warrant Shares (or other shares or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of any class or any other securities, or to receive any other right;
b.in the case of an IPO or direct listing, the Company shall provide written notice at least three (3) business days in advance of the effectiveness of a registration statement relating to such IPO or direct listing; 
c.in the case of a SPAC Transaction, the Company shall provide written notice seven (7) business days in advance of the closing of a business combination agreement with a SPAC, and subsequently written notice at least three (3) business days in advance of the first trading date of the combined company on a “national securities exchange”; or
d.in the case of any capital reorganization of the Company, any reclassification of the share capital of the Company, any consolidation or merger of the Company, any Acquisition, Asset Transfer or Liquidation Event the Company shall provide written notice at least seven (7) business days in advance of the consummation of such transaction, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of the Company’s outstanding shares of the same class as the Warrant Shares (or such other shares or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion) are to be determined. Such notice shall be mailed at least 5 business days prior to the record date or effective date for the event specified in such notice. In addition, the Company shall use commercially reasonable efforts to provide the Registered Holder with prompt written notice of any amendment to the terms “Acquisition” and “Asset Transfer” set forth in the Articles, other than in connection with the adoption and effectiveness of the Public Company Articles. Notwithstanding anything to the contrary set forth in this Section 9, if providing any contemplated notice would cause the Company to violate any contractual or other restrictions that the Company is subject to with respect to confidentiality of a particular transaction or otherwise, the Company shall only be required to provide to the Registered Holder such form of notice and upon such timing that the Company is required to provide to holders of shares of the same series and class as the Warrant Shares.
10.Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.
11.No Rights as Shareholder. Until and to the extent of the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a shareholder of the Company.
12.No Fractional Shares. No fractional Warrant Shares will be issued in connection with any exercise hereunder. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one Warrant Share on the date of exercise, as determined in accordance with Section 2(d)(ii).

13.Survival of Representations. Unless otherwise set forth in this Warrant, the representations, warranties and covenants contained in or made pursuant to this Warrant shall survive the execution and delivery of this Warrant.
14.Attorney’s Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret the terms of any of this Warrant, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled.
15.Certain Tax Matters.
a.The Registered Holder and the Company intend that: (i) this instrument shall be treated as common equity, and not an option or preferred equity, of the Company for U.S. federal and state income tax purposes and (ii) that the value of the stock described in clause (i) shall be determined by the Registered Holder for accounting and U.S. federal and state income tax purposes at such times and in such methodologies as the Registered Holder reasonably determines. Prior to a Public Company Event (or at any time a market price of the Ordinary Shares is unavailable), the Company shall use commercially reasonable efforts to promptly provide any information requested by the Registered Holder that is necessary to determine such value, including by providing audited financial statements, an independent third-party valuation, a Board-determined (and officer certified) fair market value, or other available reports or documentation to the Registered Holder upon request; provided that the Company may redact, or otherwise not provide portions of such reports that are not required for valuation purposes.  The Investor and the Company shall file all tax returns consistent with the intended treatment set forth in this Section and shall not take any action that is inconsistent with such intended treatment.
b.Passive Foreign Investment Company.  The Company shall: (a) engage a nationally recognized independent public accounting firm associated with one of the “Big Four” accounting firms (the “Accounting Firm”) to, as soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of the Company, examine whether the Company or any entity in which the Company has direct or indirect equity interest (a “Group Member”) is a Passive Foreign Investment Company (“PFIC”) or a “controlled foreign corporation” (a “CFC”), in each case for U.S. federal income tax purposes, for such fiscal year; it is hereby acknowledged that such analysis may not necessarily be based on audited financial statements; (b) immediately notify the Registered Holder if, as a result of the analysis of the Accounting Firm, the Company or any Group Member becomes aware of any change in the PFIC or CFC status of the Company or any Group Member for any fiscal year; and (c) if it is determined that the Company or any Group Member is a PFIC or CFC for any fiscal year, then the Company shall provide to the Registered Holder as soon as practicable, but in any event within ninety (90) days after the end of each fiscal year of the Company or applicable Group Member, such information (which may not necessarily be based on audited financial statements), prepared in consultation with the Accounting Firm,  as the Registered Holder may reasonably require in order to comply with the Registered Holder’s U.S. federal income tax reporting and any related requirements, including timely filing and maintaining any tax elections necessary to reduce taxes due and maintaining financial information prepared in accordance with U.S. generally accepted accounting principles.
c.Information and Cooperation.  The Company shall provide the Registered Holder with such reasonable cooperation and necessary information as the Registered Holder may reasonably request for the purposes of filing (or enable its direct or indirect equity holders to file) any applicable tax return, amended tax return or refund claim or required disclosure under applicable law or regulation, including U.S. GAAP or Securities Exchange Commission rules.
16.Miscellaneous.
a.Governing Law. The validity, interpretation, construction and performance of this Warrant, and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the state of Israel, without giving effect to principles of conflicts of law.
b. Dispute Resolution.  If the Registered Holder disagrees with any arithmetic calculations performed by the Company pursuant to the Warrant, the Registered Holder shall submit to the Company its calculations thereof.  If the Registered Holder and the Company are unable to agree upon such calculation within 

five (5) Business Days of the submission by the Registered Holder, then the Company shall, within five (5) Business Days thereafter, submit the disputed arithmetic calculation to the Company’s independent, outside accountant, or if such accountant is unwilling or not permitted to perform such services under applicable Law, an accountant reasonably satisfactory to the parties (which is ranked in the top twenty (20) accounting firms nationally, by revenue). The Company shall cause such accountant to perform the calculation and notify the Company and the Registered Holder of the results no later than ten (10) Business Days from the time it receives the disputed calculation. The Company shall pay the costs and expenses of such accountant unless the calculation of such accountant is mathematically closer to the Company’s calculation than the calculation submitted by the Registered Holder, in which case, the costs and expenses of such accountant shall be paid by the Registered Holder.  Such calculation shall be binding upon all parties absent manifest error.
c.Entire Agreement. This Warrant, together with the Agreement, sets forth the entire agreement and understanding of the parties relating to the subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written, between them relating to the subject matter hereof.
d.Amendments and Waivers. No modification of or amendment to this Warrant, nor any waiver of any rights under this Warrant, shall be effective unless in writing signed by the Company and the Registered Holder. No delay or failure to require performance of any provision of this Warrant shall constitute a waiver of that provision as to that or any other instance.
e.Successors and Assigns. The rights and obligations of the Company and the Registered Holder shall be binding upon and benefit the respective successors, assigns and permitted transferees of the parties.
f.Notices. Any notice, demand or request required or permitted to be given under this Warrant shall be in writing and shall be delivered personally, messenger or courier service, mailed by certified or registered mail, postage prepaid, or sent by electronic mail. Each such notice or other communication shall for all purposes of this Warrant be treated as effective or having been given (i) if delivered personally, by messenger or courier service, when delivered, (ii) if sent by mail, on its receipt, or (iii) if sent by electronic mail, when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day. Any notice or communication shall be addressed to the party to be notified at such party’s address as set forth below, as subsequently modified by written notice.
i.Address for notices or communications to Registered Holder:
			
	Wayfair LLC
	4 Copley Place
	Boston, Massachusetts 02116
	Attention: Andrew Oliver
	Telephone No.: ###-###-####
	Email: ######@######.###

with a copy (which shall not constitute a notice) to:
######@######.### and ######@######.###. 
ii.Address for notices of communications to Company:
			
	Riskified Ltd
	30 Kalischer Street
	Tel Aviv 6525724, Israel
	Attention: VP Legal
	Telephone No.: ###-###-####
	Email: ######@######.###

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

			
	Meitar | Law Offices
	16 Abba Hillel Rd.,
	Ramat Gan, Israel
	Attn: Alon Sahar, Adv. and Assaf Naveh, Adv., 
	email addresses: ######@######.### and ######@#####.##

g.Severability. If any provision of this Warrant becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, portions of such provision, or such provision in its entirety, to the extent necessary, shall be severed from this Warrant, and such court will replace such illegal, void or unenforceable provision of this Warrant with a valid and enforceable provision that will achieve, to the extent possible, the same economic, business and other purposes of the illegal, void or unenforceable provision. The balance of this Warrant shall be enforceable in accordance with its terms.
h.Construction. This Warrant is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Warrant shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.
i.Titles and Subtitles. The titles and subtitles used in this Warrant are included for convenience only and are not to be considered in construing or interpreting this Warrant.
j.Counterparts. This Warrant may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.
[Signature Page Follows]

IN WITNESS WHEREOF, the Company and the Registered Holder have executed this Warrant as of the date first set forth above.
THE COMPANY:
RISKIFIED LTD. 
						
	By:	/s/ Eido Gal
		
	Name:	Eido Gal
		
	Title:	CEO
		
	Address: Kalischer St 30, Tel Aviv-Yafo, Israel
Email: ######@######.###

		
	ACCEPTED AND AGREED:

		
	THE REGISTERED HOLDER:

		
	WAYFAIR LLC

		
	By:	/s/ Michael Fleisher
		
	Name	Michael Fleisher
		
	Title:	CFO
		
	Address: Four Copley Place, Boston, MA 02116
		
	Email: ######@######.###

Exhibit A
NUMBER OF WARRANT SHARES
Up to an aggregate of 333,000 Ordinary Shares, or following the consummation of a Public Company Event, the class of shares listed on a “national securities exchange” in connection with such Public Company Event (subject to adjustment as provided in the Warrant to which this Exhibit A is attached, the “Total Shares”); which will vest and become exercisable over a total of five (5) years as follows:
•20% of the Total Shares shall be vested and exercisable on each consecutive 12-month anniversary of the effective date of that certain amended SAAS Agreement between Riskified Inc. and Wayfair LLC (“Wayfair”) dated as of June 27, 2021 (the “SaaS Agreement”) until fully vested on the 5-year anniversary of the effective date of the SaaS Agreement.
•Provided, however, that each vesting event during the first three years of the vesting period will be subject to the following additional conditions (the “Three Year Vesting Conditions”):
◦The SaaS Agreement (as amended to date) remains in full force and effect in accordance with its terms; and
◦Wayfair is not in default or material breach under the terms of the SaaS Agreement (as amended). For the avoidance of doubt, any failure to comply with the volume commitment set forth in the SaaS Agreement shall be deemed, for the purposes of this Warrant, to constitute a material breach of the terms of the SaaS Agreement.
•Provided further, however, that the vesting events on the fourth and fifth anniversary of the effective date of the SaaS Agreement shall only be contingent upon Wayfair having previously satisfied the Three Year Vesting Conditions.
Terms used herein without definition will have the meanings assigned thereto in the Warrant.

Exhibit B
Irrevocable Proxy and Power of Attorney
The undersigned, as beneficial and/or record owner of Ordinary Shares of Riskified Ltd. (the “Company”), each of nominal value NIS 0.0004 per share (collectively, the “Shares”), hereby irrevocably appoints, empowers and authorizes the chairman of the Board of Directors of the Company (“Board”), ex officio, or any other member of the Board designated by the Board from time to time for this purpose, each individually, as the undersigned’s exclusive attorney-in-fact and proxy, at any time and from time to time hereafter, to act instead of the undersigned and on its behalf, in any meeting of the Company's shareholders or with respect to any resolution in writing of the Company's shareholders (or any of them), with respect to any and all aspects of the undersigned’s shareholdings in the Company (by virtue of the Shares as well as all other securities convertible into, or exchangeable for, the Shares), including, without limitations, the exercise of any and all powers and authorities vested in the undersigned in its capacity as a beneficial or record owner of the Shares, as applicable, to the fullest extent that the undersigned will be entitled to act, in the same manner and with the same effect as if the undersigned were personally present at any such meeting or voting such securities or personally acting on any matters or agreements submitted to shareholders for approval or consent.
The Shares to be voted under this proxy shall be voted by the proxy holder in the same proportion as the votes of the other shareholders of the Company present and voting at the applicable meeting of the shareholders of the Company or in relation to the execution of any written consent of the shareholders in lieu of meeting. The proxy holder shall receive, instead of the undersigned and on its behalf, any notice otherwise delivered to the undersigned by the Company in its capacity as the holder of said Shares.
The undersigned hereby revokes any and all previous proxies (if any) with respect to the Shares and shall not hereafter purport to grant any other proxy or power of attorney with respect to the Shares, deposit the Shares into a voting trust or enter into any agreement, arrangement or understanding to vote, grant any proxy or give instructions with respect to the voting of the Shares or otherwise with respect to the undersigned’s shareholdings in the Company.
The proxy holder will have the full power of substitution and revocation. All authority herein conferred shall survive the death or incapacity of, or the transfer of Shares by, the undersigned, and any obligation of the undersigned hereunder shall be binding upon the heirs, representatives, successors and assigns of the undersigned. The proxy holder shall not have or incur any liability whatsoever by reason of any act or omission of the proxy holder made in accordance with this Proxy, whether based upon mistake of fact or law, error in judgment or otherwise, provided he/she acted in good faith and not in gross negligence.
This Proxy is irrevocable as it may affect rights of third parties, shall be deemed to be coupled with an interest and will remain in full force and effect until the first to occur of: (a) the closing of a Public Company Event; or (b) at the request of the acquirer of the Company or its shares in an Acquisition, as defined in the Articles of Association of the Company as in effect from time to time, in which the Shares subject to this proxy are sold to such acquirer, upon which it will terminate automatically.
									
	Michael Fleisher	/s/ Michael Fleisher	June 21, 2021
	NAME		DATE
		SIGNATURE	

WITNESS TO SIGNATURE:
						
	Amit Tantri	/s/ Amit Tantri
	NAME	
		SIGNATURE

Exhibit C
Waiver
The undersigned, as beneficial and/or record owner of Ordinary Shares of Riskified Ltd. (the “Company”), each of nominal value NIS 0.0004 per share (collectively, the “Shares”), hereby irrevocably and unconditionally waive, now or in the future, any and all preemptive, first refusal or similar participation rights the undersigned may have as the holder of the Shares, whether existing under the Articles of Association of the Company as in effect from time to time, any agreements among shareholders, pursuant to applicable law or otherwise.
This Waiver is irrevocable as it may affect rights of third parties, shall be deemed to be coupled with an interest and will remain in full force and effect until the first to occur of: (a) the closing of a Public Company Event; or (b) at the request of the acquirer of the Company or its shares in an Acquisition, as defined in the Articles of Association of the Company as in effect from time to time, in which the Shares subject to this proxy are sold to such acquirer, upon which it will terminate automatically.
									
	Michael Fleisher	/s/ Michael Fleisher	June 21, 2021
	NAME		DATE
		SIGNATURE	

WITNESS TO SIGNATURE:
						
	Amit Tantri	/s/ Amit Tantri
	NAME	
		SIGNATURE

Exhibit D
PURCHASE/EXERCISE FORM
To:      Riskified Ltd.                                                                                                               Dated:
The undersigned, pursuant to the provisions set forth in the attached Warrant No._____, hereby irrevocably elects to:
									
		(a)	purchase ____________________ shares of the capital stock covered by such Warrant and herewith makes payment of $______________________, representing the full purchase price for such shares at the price per share provided for in such Warrant,

OR
									
		(b)	net issue exercise such Warrant for __________________ shares purchasable under the Warrant pursuant to the Net Issue Exercise provisions of Section 2(d) of such Warrant.

The undersigned acknowledges that it has reviewed the representations and warranties of the Registered Holder set forth in the Warrant and by its signature below hereby makes such representations and warranties to the Company.
Defined terms contained in this form shall have the meanings assigned to them in the Warrant.
ACKNOWLEDGED AND AGREED TO BY
THE REGISTERED HOLDER:
						
	Wayfair LLC
		
	By:	 /s/ Michael Fleisher
		
	Name: Michael Fleisher
		
	Title: CFO
		
	Address: Four Copley Place, Boston, MA 02116
		
	Email: ######@######.###

Exhibit E
ASSIGNMENT FORM
FOR VALUE RECEIVED, _______________________________________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of Warrant Shares covered thereby set forth below, unto:
									
	Name of Assignee	Address	No. of Shares
			
			
			
			
			
			

ACKNOWLEDGED AND AGREED TO BY
THE REGISTERED HOLDER:
						
	(Registered Holder)
		
	By:	/s/ Michael Fleisher       
	Name: Michael Fleisher
		
	Title: CFO
		
	Address: Four Copley Place, Boston, MA 02116
		
	Email: ######@######.###

Exhibit F
JOINDER TO INVESTORS’ RIGHTS AGREEMENT
_________ __, ______
This Joinder Agreement (the “Joinder Agreement”) to the Amended and Restated Investors’ Rights Agreement, dated [the date of the most updated IRA in force to be included], by and among Riskified Ltd. (the “Company”) and the persons and entities identified therein (the “IRA”), is made and entered into as of the date first written above, by and between the Company and Wayfair LLC (“Registered Holder”).
Capitalized terms used but not defined herein shall have the meaning ascribed to them in the IRA.
1.The parties hereto hereby acknowledge, agree and confirm that, by the execution of this Joinder Agreement, the Registered Holder shall be deemed to be a party to the IRA, as of the date hereof, and shall be deemed an “Investor” and a “Holder” thereunder.
a.The Registered Holder hereby agrees to be bound by the IRA and to be subject to all of the rights and obligations of an Investor and/or Holder therein for all intents and purposes (including, without limitation, to the market standoff and confidentiality provisions), provided that, for the avoidance of doubt, the market standoff provisions are subject to the terms of Section 5(e) of the Registered Holder’s Share Purchase Warrant.
2.This Joinder Agreement shall be governed by and construed according to the laws of the State of Israel, without regard to the conflict of laws’ provisions thereof.  Any term of this Joinder Agreement may be amended and the severance of any term hereof may be waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of all parties hereto. This Joinder Agreement may be executed in any number of counterparts (including via email, pdf. files and/or DocuSign), each of which shall be enforceable against the parties actually executing such counterparts, and all of which together shall constitute one instrument. If one or more provisions of this Joinder Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Joinder Agreement and the balance of the Joinder Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.
[Signature Page Follows]

THE COMPANY:
RISKIFIED LTD. 
						
	By:	/s/ Eido Gal                    
		
	Name:	Eido Gal
		
	Title:	CEO
		
	Address: Kalisher St 30, Tel Aviv-Yafo, Israel
Email: ######@######.###

		
	ACCEPTED AND AGREED:
		
	THE REGISTERED HOLDER:
		
	WAYFAIR LLC
		
	By:	/s/ Michael Fleisher
		
	Name:	Michael Fleisher
		
	Title:	CFO
		
	Address: Four Copley Place, Boston, MA 02116

		
	Email: ######@######.###Document

Exhibit 10.2

Riskified Ltd.
2013 Equity Plan
Adopted: July 3, 2013
Amended and Restated: February 23, 2021
1.    Name. This plan, as adopted by the Board of Directors of Riskified Ltd., (the “Company”) on July 3, 2013, and as amended from time to time, shall be known as the “Riskified Ltd. 2013 Option Plan” (the “Plan”).
2.    Purpose of the Plan. The purposes of this Plan are to enable the Company to link the compensation and benefits of individuals and entities providing services to the Company and/or its Affiliates with the success of the Company and with long-term shareholder value, by providing such Service Providers with opportunities to acquire a proprietary interest in the Company by the issuance of Shares of the Company, and by the grant of Options to purchase Shares, Restricted Share Units and other Share-based Awards pursuant to the provisions of this Plan.
3.    Headings and Definitions
3.1.    The section headings are intended solely for the reader’s convenience and in no event shall they constitute a basis for the interpretation of the Plan.
3.2.    In this Plan, the following terms shall have the meanings set forth beside them:
						
	"Affiliate"	Corporate entities who are related to the Company by way of common ownership or control, as such term is defined in section 32(9) of the Ordinance, either directly or indirectly, either partially or entirely, including but not limited to any “employing company” and "employer" as defined in Section 102(a) of the Ordinance;
		
	"Applicable Law"	The legal requirements applicable to the administration of option plans, any applicable laws, rules and regulations of any country or jurisdiction where Awards are granted under the Plan, as such laws, rules, regulations and requirements shall be in place from time to time including any Stock Exchange rules or regulations;
		
	"Approved Option"	An Award granted under Section 102(b)(2) of the Ordinance, in accordance with the "capital gain tax route", and other rights granted with respect to such Award;
		
	“Award”	Any Option, RSUs, Shares or any other Share-based award granted under this Plan to a Participant, subject to the provisions of this Plan and the applicable agreement;
		

2

						
	“Board”	The Company’s Board of Directors, or, subject to Applicable Law and the Company's incorporation documents, including the Articles of Association, any committee empowered by the Board for the purpose of implementation of this Plan (or any aspect thereof);
		
	“Cause”	Irrespective of any definition included in any other document held by a Participant and unless otherwise determined by the Board in the Participant’s Option Agreement, Restricted Share Unit Agreement, or other Share-based award agreements, the term Cause shall include any of the following-
(a) A breach of any material provision of the employment or engagement agreement between the Company or an Affiliate and a Participant, including but not limited to, a breach of any confidentiality duty of a Participant (including in regards to the confidentiality of this Plan and any grant made thereunder), inappropriate use of confidential information of the Company or an Affiliate or an event of breach of trust or breach of any non-competition obligation of a Participant;
(b) Any act which constitutes a breach of a Participant’s fiduciary duty towards the Company or an Affiliate, including without limitation disclosure of confidential information of the Company or an Affiliate and acceptance or solicitation to receive unauthorized or undisclosed benefits, irrespective of their nature, or funds or promises to receive either, from individuals, Consultants or corporate entities that the Company or an Affiliate does business with;
(c) Any act of fraud by a Participant or embezzlement of funds of the Company or an Affiliate;
(d) Any conduct or omission by, or state of affairs related to, the Participant reasonably determined by the Board to be materially detrimental to, or against the interests of, the Company or an Affiliate;
(e) Any conviction of any felony involving moral turpitude or affecting the Company or an Affiliate;
(f) Circumstances justifying the revocation and/or reduction of a Participant’s entitlement to severance pay under Applicable Law, including where relevant, pursuant to Sections 16 or 17 of the Severance Pay Law, 1963; or
(g) Any other reason which is be defined as Cause in the Participant’s personal employment contract;

		

3

						
		For the avoidance of doubt it is clarified that the determination as to whether a Participant is being terminated for Cause shall be made in good faith by the Board and shall be final and binding on the Participant; 

		

	"Company"	Riskified Ltd., a company incorporated under the laws of the state of Israel, or any Successor Company resulting from the merger or consolidation of the Company in which the Company is not the surviving entity, or any company which assumes the Plan within any M&A Transaction or Structural Change; 

		
	“Consultant”
	Shall mean any person or entity, except an Employee, engaged by the Company or an Affiliate, in order to render services to such company, including any individual engaged by an entity providing services to the Company or an Affiliate as aforementioned;
		
	"Controlling Shareholder"	A controlling shareholder of the Company as defined in section 32(9) of the Ordinance, as amended from time to time;
		
	“Employee”
	Shall mean any person, who has signed an employment agreement and has commenced employment with the Company or any Affiliate, or anyone who is on the payroll of such company and specifically excluding anyone who may under Applicable Law be deemed an employee of the Company or an Affiliate if an employment agreement was not signed and he is not on the payroll of such company. Solely in respect of Approved Options, this term shall include any officer or a member of the board of directors of such company all in accordance with Section 102;
		
	“Exercise Price”	Shall mean the consideration required to be paid by a Participant in order to exercise an Option and purchase one share, or the purchase price (if any) for each Share covered by any other Award;
		
	“Expiration Date” 
	With respect to an Award, the earlier of (i) the time such Award is fully exercised, or (ii) (a) with respect to Options - ten (10) years from the Grant Date of such Option and (b) with respect to RSUs, Shares or any other Share-based awards - 7 years from the Grant Date of such Award, or (ii) the time on which such Award expires in accordance with Sections 9 and 12 below; 

		

4

						
	“Fair Market Value”	Shall mean, as of any date, the value of an ordinary share of the Company determined as follows: 
(i) If the ordinary shares are listed on any recognized Stock Exchange, the Fair Market Value shall be the closing sales price for such ordinary shares (or the closing bid, if no sales were reported), as quoted on such Stock Exchange for the last market trading day prior to the time of determination; 
(ii) If the ordinary shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the high bid and low asked prices for the ordinary shares on the last market trading day prior to the day of determination, or;
(iii) In the absence of any of the above, the Fair Market Value thereof shall be as determined in good faith by the Board of Directors of the Company.
For the avoidance of doubt, and where applicable, the above definition of Fair Market Value shall not apply for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance;

		
	"Grant Date"	The date of the Board resolution approving the grant of the Awards, unless otherwise determined by the Board;
		
	"Holding Period"	The holding period provided under Section 102 in respect of the "capital gain tax route" or under a tax ruling by the Israeli Tax Authority;
		
	“IPO”	means the consummation of a firm commitment underwritten public offering for shares of Common Stock pursuant to an effective registration statement on Form S-1 [or Form F-1] filed with the U.S. Securities and Exchange Commission under the Securities Act.
	"Israeli Employee"	An Employee of the Company or of an Israeli resident Affiliate, who is an Israeli tax resident and who is not a Controlling Shareholder at the time of grant, or as a consequence of the grant, as stated in Section 102;
		

5

						
	“M&A Transaction”	Any Deemed Liquidation Event and/or any other similar or equivalent definition as defined in and determined pursuant to the Articles of Association of the Company as amended from time to time, excluding any Structural Change or Spin-off Transaction, and including, for the avoidance of doubt (yet excluding any Structural Change or Spin-off Transaction):
(a) A sale of all or substantially all the assets of the Company and its subsidiaries taken as a whole, or the sale or disposition (whether by merger or otherwise) of one or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries; 
(b) A merger of the Company with or into another entity, including a reverse triangular merger; or
(c) A sale of all or substantially all of the share capital of the Company to a third party unrelated to the current shareholders of the Company, whether by a single transaction or a series of related transactions which occur either over a period of 12 months or within the scope of the same acquisition agreement; 

		
	"Non-Approved 102 Option"	An Option or RSU which is governed by Section 102(c) of the Ordinance;
		
	“Ordinance”	The Israeli Income Tax Ordinance [New Version], 1961, as amended from time to time;
		
	“Option”	An option to purchase one Share, granted to a Participant, subject to the provisions of this Plan and the applicable Option Agreement;
		
	“Option Agreement”	A written agreement between the Company and a Participant or a notice provided by the Company setting forth the terms and conditions under which Options are granted to a Participant;
		
	“Participant”	Shall mean anyone to which an Award was granted in accordance with section 5 of the Plan;
		
	“Plan”	Shall mean this Riskified Ltd. 2013 Option Plan, including any amendments thereto;

		
	“Restricted Share Unit Agreement”	A written agreement between the Company and a Participant or a notice provided by the Company setting forth the terms and conditions under which RSUs are granted to a Participant;
		

6

						
	“RSU” or “Restricted Share Unit”	An unfunded, unsecured right to receive, on the applicable settlement date, one Share or an amount in cash or other consideration determined by the Board to be of equal value as of such settlement date, subject to certain vesting conditions and other restrictions.
		
	“Section 102”	Section 102 of the Ordinance and the Israeli Income Tax Rules (Tax Relief in Issuance of Shares to Employees) 2003, as amended from time to time;
		
	“Share”	An ordinary share of the Company, nominal value 0.01 NIS, which is issued or issuable to a Participant upon exercise of an Option or settlement of an RSU;
		
	"Spin-off Transaction"	Any transaction in which assets of the Company are transferred or sold to a company or corporate entity in which the shareholders of the Company hold the same respective ownershipstakes they are then holding in the Company (i.e. – transfer of assets to a 'sister company' of the Company);
		
	“Stock Exchange”	Any stock exchange, on which ordinary shares of the Company are listed, or such other market or a national market system, on which the Company’s ordinary shares’ prices are regularly quoted;
		
	"Structural Change"	Any re-domestication of the Company, share flip, creation of a holding company for the Company which will hold substantially all of the shares of the Company or any other transaction involving the Company in which the shares of the Company outstanding immediately prior to such transaction continue to represent, or are converted into or exchanged for shares that represent, immediately following such transaction, at least a majority, by voting power, of the share capital of the surviving, acquiring or resulting corporation;
		
	“Successor Company”	Shall mean any entity with or into which the Company was merged or consolidated, or to which certain operations or certain assets of the Company were transferred, or which purchased substantially all the Company’s assets or shares, including any parent of such entity;
		
	“Tax”	Any applicable tax and other compulsory payments such as social security and health tax contributions required to be paid under any applicable law in relation to the Awards or the rights deriving there-from;

		

7

						
	“Termination”
	For an Employee, the termination of employment, and for a Consultant, the expiration, or termination of such person’s consulting or advisory relationship with the Company or an Affiliate, or the occurrence of any termination event as set forth in such person’s Option Agreement or Restricted Share Unit Agreement; 
For the purpose of this plan the following shall not be considered as Termination (i) for an Employee – paid vacation, sick leave, paid maternity leave, infant care leave, medical emergency leave, military reserve duty, or any other leave of absence authorized in writing by the Board, the Company's VP Global HR, or any other member of management vested with such authority by the Board from time to time; and (ii) for a Consultant- any temporary interruption in such person’s availability to provide services to the Company and/or an Affiliate, which has been authorized in writing by Board;

		
	

	Termination shall not include any transfer of a Participant between the Company and any Affiliate or between Affiliates, nor shall it include any change in a Participant's engagement status between an "Employee" and "Consultant" and vice versa (without derogating the different tax implications that may result from such change of status);

		
	“Termination Date”	With regard to any Employee, the first date following the Date of Grant on which there are no longer employment relations between such Employee and the Company or an Affiliate, for any reason whatsoever; however for the purpose of Termination for Cause, the Termination Date is the date on which a notice regarding such termination was sent by the Company or an Affiliate to the Employee; 
With regard to any Consultant, the earlier of (i) the date of termination of the agreement between the Consultant and the Company or an Affiliate; or (ii) the date on which a notice regarding such termination of agreement was sent by the Company or an Affiliate, or by the Consultant, to the other party; 

		
	"Transfer"	With respect of any Award or Share – the sale, assignment, transfer, pledge, mortgage or other disposition thereof or the grant of any right to a third party thereto;
		
	“Trustee”
	Any trustee appointed by the Company in accordance with Section 102 and approved by the Israeli Tax Authority;

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	“Vesting Date”	The date upon which the Award becomes exercisable, as determined in accordance with this Plan and set forth in the Option Agreement or Restricted Share Unit Agreement as applicable.

4.    Administration of the Plan
4.1.    The Board shall have the power to administer the Plan. 
4.2.    Subject to the provisions of the Plan, applicable law and the Company's incorporation documents, the Board shall have the authority, at its discretion: (i) to grant Awards to Participants; (ii) to determine the terms and provisions of each Award granted (which need not be identical), including, but not limited to, the number of Awards to be granted to each Participant, provisions concerning the time and the extent to which the Awards may be exercised, the underlying Shares sold and the nature and duration of restrictions as to the Transferability of Awards and/or Shares; (iii) to amend, modify or supplement (with the consent of the applicable Participant, if such amendments refer to the extension of any vesting schedule determined for the Awards or increase the Exercise Price of the Awards or cancellation of any Awards without compensation) the terms of each outstanding Award, unless included otherwise under the terms of the Plan; (iv) to interpret the Plan; (v) to prescribe, amend, and rescind rules and regulations relating to the Plan, including the form of Option Agreements or Restricted Share Unit Agreement and rules governing the grant of Awards in jurisdictions in which the Company or any Affiliate operate; (vi) to authorize conversion or substitution under the Plan of any or all Options, RSU or Shares and to cancel or suspend Awards, as necessary, provided that, unless consent is received from the Participants, the interests of the Participants are not materially harmed; (vii) to accelerate or defer (with the consent of the Participant) the right of a Participant to exercise in whole or in part, any previously granted Awards; (viii) to authorize any person to execute on behalf of the Company any instrument required to effectuate the grant of an Award previously granted by the Board; and (ix) to make all other determinations deemed necessary or advisable for the administration of the Plan. 
4.3.    This Plan shall apply to grants of Awards made following the adoption of this Plan by the Board.
4.4.    All decisions, determinations, and interpretations of the Board shall be final and binding on all Participants unless otherwise determined by the Board.
5.    Eligibility. Awards may be granted to Employees or Consultants, provided that if services have not commenced, the grant will be made subject to commencement of actual services; An Approved Option and a Non-Approved Option may only be granted to Israeli Employees. 
6.    Shares Reserved for the Plan. The Company during the term of this Plan will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the vested portion of Awards granted under the Plan and any other share and option plans which may be adopted by the Company in the future, subject to any adjustment made to the share capital of the 

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Company by way of share split, reverse share split, distribution of share dividend or similar recapitalization events, at any time hereafter. The Shares may be authorized but unissued ordinary shares, or reacquired ordinary shares of the Company. If an Award should expire or become un-exercisable for any reason without having been exercised in full, the Shares that were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan. Shares issued under the Plan and later repurchased by the Company pursuant to any repurchase right which the Company may have, shall be available for future grant under the Plan.
7.    Options 
7.1.    Grant
7.1.1.    The Board may grant Options from time to time at their sole discretion. The Options granted pursuant to the Plan, shall be evidenced by a written Option Agreement. Each Option Agreement shall state, among other matters, the number of Options granted, the Vesting Dates, the Exercise Price, the tax route and such other terms and conditions as the Board at its discretion may prescribe, provided that they are consistent with this Plan.
7.1.2.    Options which are Approved Options, as determined in the Option Agreement, and any Shares issued in respect of such Approved Option shall be subject to the Trustee’s trusteeship, as provided in Section 11 below. Any grant of an Approved Option shall be subject to compliance with the conditions of Section 102 and shall be granted only 30 days or more after the submission of the Plan for approval by the Israeli Tax Authority.
7.2.    Vesting. 
7.2.1    The Board shall set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Options that will vest and become exercisable. The Board may set vesting criteria based upon continued engagement with the Company or any Affiliate or based upon both continued engagement and the achievement of Company-wide, business unit, or individual goals, or any other condition as determined by the Board in its discretion. Unless otherwise determined by the Board, all Options granted under this Plan shall vest over a 4-year period, with 25% thereof vesting on the end of a 12-month period following the date of grant, and the remaining 75% thereof vesting in 12 equal portions at the end of each 3-month period thereafter. The vesting conditions and schedule shall be set in the applicable Option Agreement. No Option shall be exercised after the Expiration Date. The vesting provisions of individual Options may vary. 
7.2.2    Unless determined otherwise by the Board, the Company's VP Global HR, or any other member of management vested with such authority by the Board from time to time, the vesting of the Options shall be postponed during any un-paid leave of absence. Upon return to service, the vesting shall continue and each of the remaining Vesting Dates shall be postponed by the number of days of such period of un-paid leave (i.e. shifting the entire remaining vesting schedule and extending it by the number of unpaid leave days). Despite the aforementioned, the following shall not postpone the vesting of the Options: paid vacation, sick leave, paid maternity leave, infant care leave, medical emergency leave, military reserve duty. 

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7.2.3    The vesting of the options shall continue upon any transfer of a Participant between the Company and any Affiliate or between Affiliates.
7.3.    An Option may be subject to such other terms and conditions, not inconsistent with the Plan, on the time or times when it may be exercised as the Board may deem appropriate.
7.4.    Exercise of Options 
7.4.1.    An Option shall be exercised by submission to the Company of a notice of exercise, in a form set by the Company, accompanied by payment as hereinafter described. The exercise of an Option shall occur upon receipt of a notice of exercise by the Company accompanied by payment in full of the Exercise Price payable for each of the Shares being purchased pursuant to such exercise, and as soon as practicable thereafter, and subject to the provisions of section 8.3 below, the Company will issue the Share(s) underlying such exercised Option, provided that the Shares so issued shall not be delivered to the Participant or any third party (other than the Trustee, if applicable) unless and until all applicable Tax was paid to the Trustee’s (if applicable) and the Company’s full satisfaction and subject to compliance with Applicable Law.
7.4.2.    Except as otherwise provided in the Plan or in an Option Agreement, an Option may be exercised in full or in part, subject to the Expiration Date, provided it is not exercised for a fraction of a Share, as further detailed in section 8.3 below.
7.4.3.    Notices of exercise of Options, which are submitted after the Expiration Date, or which relate to Options that have not yet vested, or which do not contain all of the details required by the exercise form, shall not be accepted and shall have no force whatsoever. 
7.4.4.    The Participant shall sign any document required under any Applicable Law or by the Company or the Trustee for the purposes of issuance of the Shares. 
7.4.5.    As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.
7.5.    Consideration. 
7.5.1.    The Exercise Price of each Share subject to an Option shall be determined by the Board in its sole and absolute discretion in accordance with Applicable Law, subject to any guidelines as may be determined by the Board from time to time. Each Option Agreement will contain the Exercise Price determined for each Option covered thereby. The Exercise Price may or may not be equal to the Fair Market Value of the ordinary Shares of the Company, and any evaluation executed in relation to such shares shall not obligate the Company when determining the Exercise Price of any Option.
7.5.2.    The Exercise Price shall be paid in cash or cheque at the time the Option is exercised, or by any other means as determined by the Board. Should the Company's ordinary 

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shares be listed for trade on a Stock Exchange the Board may consider allowing a cashless exercise, or any other exercise method, subject to the provisions of Applicable Law. If, as of the date of exercise of an Option the Company is then permitting cashless exercises, the Participants will be able to engage in a “same-day sale” cashless brokered exercise program, involving one or more brokers, through such a program that complies with the Applicable Laws and that ensures prompt delivery to the Company of the amount required to pay the Exercise Price and any Tax.
7.5.3.    The Exercise Price shall be denominated in the currency of the primary economic environment of, at the Board's discretion, either the Company or the Participant (that is the functional currency of the Company or the currency in which the Participant is paid).
8.    Restricted Share Units.
An RSU is an Award covering a number of Shares that is settled, if vested and (if applicable) exercised, by issuance of those Shares.  An RSU may be awarded to any eligible Participant, including under Section 102 of the Ordinance.  The Restricted Share Unit Agreement shall be in such form as the Board shall from time to time approve.  The RSUs shall be subject to all applicable terms of this Plan, which in the case of RSUs granted under Section 102 shall include Section 8 hereof, and may be subject to any other terms that are not inconsistent with this Plan. All RSUs granted under Section 102, shall be also referred as Approved Options and will be subject to the respective provisions under this Plan.  The provisions of the various Restricted Share Unit Agreements entered into under this Plan need not be identical.  RSUs may be granted in consideration of a reduction in the Participant’s other compensation.
8.1.    Exercise Price.  No payment of Exercise Price shall be required as consideration for RSUs, unless included in the Restricted Share Unit Agreement or as required by Applicable Law (including, Section 304 of the Companies Law), and Section 6.4 shall apply, if applicable.  
8.2.    Shareholders’ Rights.  The Participant shall not possess or own any ownership rights in the Shares underlying the RSUs and no rights as a shareholder shall exist prior to the actual issuance of Shares in the name of the Participant. 
8.3.    Settlements of Awards.  Settlement of vested RSUs shall be made in the form of Shares or cash (in case of 102 Trustee Awards, the settlement shall be made in the form of Shares only).  distribution to a Participant of an amount (or amounts) from settlement of vested RSUs can be deferred to a date after settlement as determined by the Board.  The amount of a deferred distribution may be increased by an interest factor or by dividend equivalents.  Until the grant of RSUs is settled, the number of Shares underlying such RSUs shall be subject to adjustment pursuant hereto.
9.    Terms and Conditions of the Awards. Awards granted under the Plan shall be evidenced by the related Option Agreement or Restricted Share Unit Agreement, as applicable, and shall be subject to the following terms and conditions and to such other terms and conditions included in the Option Agreement or Restricted Share Unit Agreement not inconsistent therewith, as the Board shall determine:
9.1.    Non Transferability of Awards. Unless otherwise determined by the Board, an Award shall not be Transferable by the Participant other than in accordance with section 9.2.1.2 

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below. Awards or rights arising therefrom shall not be subject to mortgage, attachment or other willful encumbrance, and no power of attorney shall be issued in respect thereof, whether such enter into force immediately or at a future date.
9.2.    One Time Benefit. The Awards and underlying Shares are extraordinary, one-time benefits granted to the Participants, and are not and shall not be deemed a salary component for any purpose whatsoever, including in connection with calculating severance compensation under any Applicable Law. 
9.3.    Fractions. An Award may not be converted into a fraction of a Share. In lieu of issuing fractional Shares, on the vesting of a fraction of an Award, the Company shall convert any such fraction of an Award, which represents a right to receive 0.5 or more of a Share, to one Share and shall extinguish any such fraction of an Award, which represents a right to receive less than 0.5 of a Share without issuing any Shares. 
9.4.    Term. No full or partial exercise of an Award shall be carried out following the Expiration Date of such Award. 
10.    Termination of Employment or Engagement. 
10.1.    Unvested Awards. Unless otherwise determined by the Board, in the case of Termination, any Award or portion thereof that was not vested as of the Termination Date shall immediately expire on the Termination Date. 
10.2.    Vested Options 
10.2.1.    Termination other than for Cause. 
10.2.1.1.    Unless otherwise determined by the Board, in the case of Termination other than for Cause, any Option or portion thereof that is vested as of the Termination Date may be exercised but only within such period (subject, however, to the provisions of Section 12 below concerning early expiration or other treatment upon certain events) of time ending on the earlier of (i) ninety (90) days following the Termination Date, or (ii) the Expiration Date, but only to the extent to which such Option was exercisable at the time of the Termination Date. If, after the Termination Date, the Participant does not exercise his or her Option within the time specified above or in the Option Agreement, the Option shall expire. 
10.2.1.2.    Unless otherwise determined by the Board, in the event of (i) Termination as a result of the Participant’s death or disability or (ii) the Participant dies within the period stated in section 9.2.1.1, then the Option may be exercised (to the extent exercisable as of the date of death) by the Participant in the event of disability, the Participant’s legal guardian, the Participant’s estate, or by a person who acquired the right to exercise the Option by bequest or inheritance (the “Assignees”), but only within the period (subject, however, to the provisions of Section 12 below concerning early expiration or other treatment upon certain events) ending on the earlier of (1) the date twelve (12) months following the date of death or the Termination Date due to disability (as the case may be) (or such longer or shorter period specified in the Option Agreement) or (2) the Expiration Date. If, after death or termination due to disability (as the case may be), the Option is not exercised within the time specified herein, the Option shall 

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expire. The Transfer of Options to any Assignee shall be subject to the provision of a written notice to the Company and to the execution by the Assignee of any documents required by the Company. All of the terms of any Option, whether in this Plan, the Option Agreement and/or any other document in respect of such Option, shall be binding upon the Assignees.
10.2.1.3.    If the exercise of an Option following the Termination Date or death would be prohibited at any time solely because the issuance of Shares would violate requirements of any Applicable Law, then the Option shall expire: (i) in the event of a Termination - at the end of a period of ninety (90) days in the aggregate, or (ii) in the event of death - at the end of a period of twelve (12) months in the aggregate, during which the exercise of the Option would not be in violation of such requirements.
10.2.1.4.    It is clarified that during such periods following the Termination Date the Participant's entitlement to Options shall not continue to vest. 
10.2.1.5.    The Board shall have the sole authority to extend the exercise periods detailed in sections 10.2.1.1 – 10.2.1.3 above at its sole discretion.
10.2.2.    Termination for Cause. If a Participant’s employment or engagement with the Company is terminated for Cause, any Option or portion thereof that has not been exercised as of the Termination Date shall immediately expire on the Termination Date.
10.3.    No Participant shall be entitled to claim against the Company that he or she was prevented from continuing to vest Awards as of the Termination Date. Such Participant shall not be entitled to any compensation in respect of the Awards which would have vested in his favor had such Participant’s employment or engagement with the Company not been terminated.
11.    No Right to Employment, Service, Awards or Shares. The grant of an Award, the vesting of any Award or the issuance of a Share under the Plan shall impose no obligation on the Company or an Affiliate to continue the employment of any Employee or the engagement with any Consultant and shall not lessen or affect the Company's or an Affiliate's right to terminate the employment or service relationship of such Participant at any time and/or for any or no reason with or without Cause, even if such Termination is immediately prior to the vesting of any Award. No Participant or other person shall have any claim to be granted any Awards or to the vesting of any Awards, whether expired immediately following grant or prior to vesting. There is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards and the terms and conditions of Awards and the Board's determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not such Participants are similarly situated).
Nothing contained in the Plan shall prevent the Company from adopting, adjusting or continuing in effect compensation arrangements, which may, but need not, provide for the grant of Awards or Shares. 
12.    Trust
12.1.    Approved Options and any Shares issued in connection with such Approved Options shall be held by the Trustee for the benefit of the Participant, in accordance with the 

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provisions of Section 102 in the "capital gain tax route". Any grant and any exercise of an Option or sale or transfer of a Share shall be notified to the Trustee. 
12.2.    The validity of any order given to the Trustee by a Participant shall be subject to approval of such order by the Company. The Company does not undertake to approve orders given by any Participant to the Trustee within any period of time. 
12.3.    Subject to the provisions of this Plan, the Approved Options and any RSUs or Shares issued in connection with such Approved Options shall not be released from the control of the Trustee nor shall they be Transferred unless the Company and the Trustee are satisfied that the full amounts of Tax due by the applicable Participant have been paid or will be paid.
12.4.    Subject to the provisions of Section 102, a Participant shall not Transfer or release from the control of the Trustee any Approved Option or any Share issued in connection with such Approved Options, until the lapse of the Holding Period. Notwithstanding the above, if any such release or Transfer occurs during the Holding Period, the sanctions under Section 102 shall apply to and shall be borne by such Participant.
12.5.    As long as the Approved Options and any RSUs or Shares issued in connection with such Approved Options are held by the Trustee for the benefit of the Participant, all rights of the Participant over the Approved Options, RSUs and Shares cannot be Transferred other than by will or laws of descent and distribution.
12.6.    Without derogating from the aforementioned, the Board shall have the authority to determine the specific procedures and conditions of the trusteeship with the Trustee in a separate agreement between the Company and the Trustee, all subject to Section 102.
12.7.    Should the Approved Options or any RSUs or Shares issued in connection with such Approved Options be transferred by power of a last will or under laws of decent, the provisions of Section 102 shall apply to the legal heirs or transferees by law of the deceased Participant.
12.8.    Approved Options that do not comply with the requirements of Section 102 shall be considered Non-Approved 102 Options or Options subject to tax under Section 3(i) of the Ordinance. 
13.    Adjustments to the Shares subject to the Plan
13.1.    Adjustment Due to Change in Capital. If the ordinary shares of the Company shall at any time be changed or exchanged by distribution of a share dividend (bonus shares), share split, combination or exchange of shares, recapitalization, or any other like event by or of the Company, and as often as the same shall occur, then the number and class of the Shares underlying the Awards subject to the Plan and the Exercise Price of the Awards shall be appropriately and equitably adjusted so as to maintain through such an event the proportionate equity portion represented by the Awards and the total Exercise Price of the Awards, provided, however, that no adjustment shall be made by reason of the distribution of subscription rights (rights offering) on outstanding ordinary shares or other issuance of shares by the Company. Fractions of shares shall be dealt with in accordance with the provisions of section 8.3 above. 

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Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares underlying an Award. Any adjustment according to this section shall be subject to the receipt of a tax ruling or approval from the tax authorities, if and as necessary.
13.2.    Adjustment Due to a Structural Change. In the event of a Structural Change, the Shares underlying the Awards subject to the Plan shall be exchanged or converted into shares of the Company or Successor Company in accordance with the exchange effectuated in relation to the ordinary shares of the Company, and the Exercise Price and quantity of shares underlying the Awards shall be adjusted in accordance with the terms of the Structural Change. The adjustments required shall be determined in good faith solely by the Board and shall be subject to the receipt of any approval required, including any tax ruling, if necessary. 
13.3.    Adjustment Due to a Spin-Off Transaction. In the event of a Spin-Off Transaction, the Board may determine that the holders of Awards shall be entitled to receive equity in the new company formed as a result of the Spin-Off Transaction, in accordance with equity granted to the ordinary shareholders of the Company within the Spin-Off Transaction, taking into account the terms of the Awards, including the vesting schedule and Exercise Price. The determination regarding the Participant's entitlement within the scope of a Spin-Off Transaction shall be in the sole and absolute discretion of the Board. 
13.4.    M&A Transaction. 
12.4.1    Without derogating from the Board’s general power under the Plan, in the event of any M&A Transaction, the Board shall be entitled (but not obliged), at its sole discretion, to determine any of the following: (i) provide for an assumption or exchange of Awards and/or Shares for Awards and/or shares and/or other securities or rights of the Successor Company or parent or affiliate thereof; and/or (ii) provide for an exchange of Awards or Shares for a monetary compensation (including for avoidance of doubt a cash-out of the Awards for the net value); and/or (iii) determine that all unvested Awards and un-exercised vested Awards shall expire on the date of such M&A Transaction; and/or (iv) determine that the exchange, assumption, conversion or purchase detailed above will be made subject to any payment or escrow arrangement, or any other arrangement determined within the scope of the M&A Transaction in relation to the ordinary shares of the Company. In the case of assumption and/or substitution of Awards, appropriate adjustments shall be made so as to reflect such action and all other terms and conditions of the Option Agreements or Restricted Share Unit Agreement, as applicable, shall remain substantially unchanged, including but not limited to the vesting schedule, all subject to the determination of the Board, which determination shall be at its sole discretion and final. The value of the exchanged Awards and/or Shares pursuant to this section 12.4 shall be determined in good faith solely by the Board, based among others on the Fair Market Value, and its decision shall be final and binding on all the Participants. 
Unless determined otherwise by the Board, and without derogating from the aforementioned, any Awards not assumed or exchanged for options and/or RSUs and/or shares and/or other securities or rights or not cashed-out, shall expire immediately prior to the consummation of the M&A Transaction.

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12.4.2    For the purposes of this section 12.4, the mechanism for determining the assumption or exchange as aforementioned shall be as may be agreed upon between the Board and the Successor Company. 
12.4.3    Without derogating from the above, in the event of a M&A Transaction the Board shall be entitled, at its sole discretion, to require the Participants to exercise all vested Awards within a set time period and sell all of their Shares on the same terms and conditions as applicable to the other shareholders selling their Company’s ordinary shares as part of the M&A Transaction. Each Participant acknowledges and agrees that the Board shall be entitled to authorize any one of its members to sign share transfer deeds in customary form in respect of the Shares held by such Participant and that such share transfer deed shall bind the Participant.
12.4.4    Despite the aforementioned, if and when the method of treatment of Awards within the scope of an M&A Transaction determined according to the above will in the sole opinion of the Board prevent the M&A Transaction from occurring, or materially risk the M&A Transaction, the Board may determine different treatment for different Awards held by Participants such that not all Awards will be treated equally within the scope of the M&A Transaction.
12.4.5    In the event in which the exercise price of the Awards is higher than the per-share value of the shares of the Company in such an M&A Transaction ("out-of-the-money Awards"), the Board shall be entitled to cancel and terminate such Awards effective upon consummation of the M&A Transaction without consideration.
12.4.6    In the event in which the Awards shall be cancelled upon the M&A Transaction, the Company shall provide notice to such Participants in such manner as notice is provided regarding the M&A Transaction to any other shareholders of the Company not represented in the Board. Such notice shall be sent to the last known address of the Participants according to the records of the Company. The Company shall not be under any obligation to ensure that such notice was actually received by the Participants.
13.5.    Liquidation. In the event of the proposed dissolution or liquidation of the Company, all Awards will expire immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. 
13.6.    The Participants shall execute any documents required by the Company or any Successor Company or parent of affiliate thereof in order to affect any of the actions determined within the scope of this section 12. The failure to execute any such document may cause the expiration and cancellation of any Award held by such Participant, as determined by the Board in its sole and absolute discretion.
14.    Taxes and Withholding Tax
14.1.    Approved Options and Non-Approved 102 Options shall be taxed in accordance with Section 102. For the avoidance of doubt it is clarified that any Award granted to a Consultant or a Controlling Shareholder or any Award granted to a Participant who is not an Israeli tax resident, shall not be subject to the provisions of Section 102 and shall be taxed in accordance with Applicable Law.

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14.2.    Any Tax imposed in respect of the Options and/or RSUs and/or Shares, including, but not limited to, in respect of the grant of Awards, and/or the exercise of Awards into Shares, and/or the Transfer, waiver, or expiration of Options and/or RSUs and/or Shares, and/or the sale of Shares, shall be borne solely by the Participants, and in the event of death by their heirs or transferees. The Company, the Affiliates, the Trustee (if applicable) or anyone on their behalf shall not be required to bear the aforementioned Taxes, directly or indirectly, nor shall they be required to gross up such Tax in the Participants’ salaries or remuneration. The applicable Tax shall be deducted from the proceeds of sale of Shares or shall be paid to the Company, an Affiliate or the Trustee (if applicable) by the Participants. Without derogating from the aforementioned, the Company, an Affiliate and the Trustee (if applicable) shall be entitled to withhold Taxes according to the requirements of any Applicable Laws, rules, and regulations, and to deduct any Taxes from payments otherwise due to the Participant from the Company or an Affiliate (if applicable).
14.3.    The Company's or Trustee's (if applicable) obligation to deliver Shares upon exercise of an Award or to sell or transfer Shares is subject to payment (or provision for payment satisfactory to the Board and the Trustee (if applicable)) by the Participant of all Taxes due by him under any Applicable Law. 
14.4.    The Participants shall indemnify the Company and/or the applicable Affiliate and/or the Trustee (if applicable), immediately upon request, for any Tax (including interest and/or fines of any type and/or linkage differentials in respect of Tax and/or withheld Tax) for which the Participant is liable under any Applicable Law or under the Plan, and which was paid by the Company, the Affiliate or the Trustee (if applicable), or which the Company, the Affiliate or the Trustee (if applicable) are required to pay. The Company, the Affiliate and the Trustee (if applicable) may exercise such indemnification by deducting the amount subject to indemnification from the Participants’ salaries or remunerations. 
14.5.    In respect to Non-Approved 102 Options, if there occurs a Termination of the Participant's service to or employment with the Company or an Affiliate, the Participant shall extend to the Company or the applicable Affiliate a security or guarantee for the payment of Tax due in respect of such Award as required under Section 102.
15.    Registration of the Shares on a Stock Exchange 
15.1.    Should reorganization or certain other arrangements regarding the Company’s share capital be necessary prior to the registration of the Company’s ordinary shares or their respective depositary receipts on a Stock Exchange, such arrangements or reorganization may be also carried out in respect of the Participants and their Options and/or RSUs and/or Shares. 
15.2.    The Participant acknowledges that in the event that the Company’s ordinary shares or their respective depositary receipts shall be registered for trading in any Stock Exchange, or in the event of a private offering of shares, the Participant’s rights to exercise their Awards or sell the Shares may be subject to certain limitations (including a lock-up period), as will be requested by the Company or its underwriters, and the Participant unconditionally agrees and accepts any such limitations.

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15.3.    The Company does not undertake to cause the ordinary shares or the Shares to be listed on a Stock Exchange, or that the registration of the ordinary shares or the Shares for trade, if at all, shall take place within a certain period of time.
16.    The Rights Attached to the Shares
16.1.    Equal Rights. The Shares constitute part of the ordinary shares of the Company, and they shall have equal rights for all intents and purposes as the rights attached to the ordinary shares of the Company, subject to the provisions of this Plan and any Option Agreement or any Restricted Share Unit Agreement (as applicable). The Shares, being part of the ordinary shares of the Company, shall not be protected against dilution in any manner whatsoever, unless otherwise determined by the Board. It is hereby clarified that the Shares shall not constitute a separate class of shares, but shall be an integral part of the Company’s ordinary shares. 
Any change of the Company’s Articles of Association or any other incorporation document, which may change the rights attached to the Company’s ordinary shares, shall also apply to the Shares, and the provisions hereof shall apply with the necessary modifications arising from any such change.
The grant of Awards and issuance of Shares under this Plan shall not restrict the Company in any way regarding future creation of additional and/or other classes of shares, including classes of shares, which may in any manner be preferred over the currently existing ordinary shares which are offered to Participants under this Plan. Subject to section 14.1 above, the grant of Options, RSUs and Shares under this Plan shall not entitle any Participant to receive any compensation in the event of any change of the Company’s capital.
16.2.    Dividend Rights. No Participant shall have any rights to receive dividends in respect of the Shares underlying any outstanding Awards, until such Awards are exercised into Shares and these Shares are issued to the Participant or the Trustee. Following the issuance of such Shares by the Company, such Shares will entitle the Participant to receive any dividend, to which other holders of ordinary shares in the Company are entitled.
16.3.    Transfer and Sale of Shares. Shares shall not be sold or transferred prior to a M&A Transaction or an IPO, unless otherwise determined by the Board, other than by will or laws of descent and distribution. 
16.4.    Bring Along. For the avoidance of doubt it is clarified that as part of the ordinary shares of the Company, Shares issued upon exercise of Awards or in connection thereto shall be subject to any bring-along provision included in the incorporation documents of the Company or any shareholders agreement or similar agreement(s) by which some or all holders of ordinary shares of the Company are bound. 
16.5.    Voting Rights. No Participant shall have any rights to vote in the Company’s meetings in respect of underlying Shares, until such Shares are issued to the Participant or the Trustee. Following the issuance of such Shares by the Company, the Participant shall have the same voting rights as other holders of ordinary shares in the Company. Notwithstanding the aforesaid, and unless determined otherwise by the Board, as long as the Company’s ordinary shares are not traded on a Stock Exchange, any Shares issued upon the exercise of an Award 

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shall be voted by an irrevocable proxy, such proxy to be assigned to the person or persons designated by the Board. The Participants will be required, as a condition to the receipt of the Awards granted pursuant to this Plan and as a condition to the issuance of any Shares, to sign such a proxy. Unless otherwise determined by the Board, the proxy will be transferred upon any transfer of Shares unless such transfer occurs upon a M&A Transaction or upon or after an IPO of the Company.
17.    Changes to the Plan. The Board shall be entitled, from time to time, to update and/or change the terms of this Plan, in whole or in part, at its sole discretion, provided that only if the amendment refers to the extension of any vesting schedule determined for the Awards or increase of the Exercise Price of the Awards or cancellation of any Awards without compensation consent is received from the Participants. The Board shall be entitled to terminate this Plan at any time, provided that such termination shall not materially affect the rights of Participants, to whom Awards have already been granted. 
18.    Effective Date and Duration of the Plan
18.1.    The Plan shall be effective as of the day it was adopted by the Board and shall terminate at the end of ten (10) years from such day of adoption.
18.2.    The Company shall obtain the approval of the Company’s shareholders for the adoption of this Plan or for any amendment to this Plan, if shareholders’ approval is necessary or desirable to comply with any Applicable Law, including without limitation the securities laws of jurisdictions applicable to Awards granted to Participants under this Plan, or if shareholders’ approval is required by any authority or by any governmental agency or by any national securities exchange, including without limitation the US Securities and Exchange Commission. 
18.3.    Termination of the Plan shall not affect the Board’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.
19.    Successors and Assigns. The Plan and any Award granted thereafter shall be binding on all successors and assignees of the Company and a Participant, including, without limitation, the estate of such Participant and the executor, administrator or trustee of such estate, or any receiver or trustee in bankruptcy or representative of the Participant’s creditors.
20.    Miscellaneous 
20.1.    Notices. Notices and requests regarding this Plan shall be sent in writing by registered mail or by courier to the addresses of the Company and the Participant as follows or by facsimile transmission (provided that written confirmation of receipt is provided) with a copy by mail: if to the Company: at its principal offices; if to the Participant - to the Participant’s address, as registered in the Company’s registries. Such notices shall be deemed received at the addressee as follows: if sent by registered mail - within three (3) business days following their deposit for mailing at a post office located in the country of addressee, or seven (7) business days following their deposit for mailing at a post office located outside the country of addressee, and if hand-delivered or sent by facsimile with confirmation of receipt - on the day of delivery (or refusal to receive).

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20.2.    This Plan (together with the applicable Option Agreement(s) and the applicable Restricted Share Unit Agreement(s) entered into with any Participant) constitutes the entire agreement and understanding between the Company and such Participant in connection with the grant of Awards to the Participant. Any representation and/or promise and/or undertaking made and/or given by the Company or by whosoever on its behalf, which has not been explicitly expressed herein in an Option Agreement or in a Restricted Share Unit Agreement, shall have no force and effect.
21.    Governing Law. The Plan shall be governed by, construed and enforced in accordance with the laws of the State of Israel, without giving effect to principles of conflicts of law. The competent courts of Tel Aviv-Jaffa shall have exclusive jurisdiction to hear all disputes arising in connection with this Plan.
* * * * *

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