APPENDIX
A
REWALK ROBOTICS LTD.
2024
INCENTIVE COMPENSATION PLAN
ReWalk Robotics Ltd., doing business as “Lifeward”, an Israeli
corporation (the “Company”), has adopted the ReWalk Robotics Ltd. 2024 Incentive
Compensation Plan (as subsequently amended, restated, amended and restated or otherwise modified, the “Plan”)
for the benefit of non-employee directors of the Company and officers and eligible employees and consultants of the Company and any Affiliates
(as each term is defined below), as follows:
ARTICLE I.
ESTABLISHMENT; PURPOSES;
AND DURATION
1.1. Establishment
of the Plan. The Company hereby establishes this incentive compensation plan to be known as the “ReWalk Robotics Ltd. 2024
Incentive Compensation Plan,” as set forth in this document. The Plan permits the grant of Stock Options, Stock Appreciation Rights,
Restricted Shares, Restricted Share Units, Other Share-Based Awards, Dividend Equivalents and Cash-Based Awards. The Plan shall become
effective upon shareholder approval in accordance with applicable law, the Company’s articles of association, and applicable stock
exchange rules (the “Effective Date”). The Plan shall remain in effect as provided
in Section 1.3.
1.2. Purposes
of the Plan. The purposes of the Plan are to provide additional incentives to non-employee directors of the Company and to those
officers, employees and consultants of the Company and Affiliates, whose substantial contributions are essential to the continued growth
and success of the business of the Company and the Affiliates, in order to strengthen their commitment to the Company and the Affiliates,
and to attract and retain competent and dedicated individuals whose efforts will result in the long-term growth and profitability of the
Company and to further align the interests of such non-employee directors, officers, employees and consultants with the interests of the
shareholders of the Company. To accomplish such purposes, the Plan provides that the Company may grant Stock Options, Stock Appreciation
Rights, Restricted Shares, Restricted Share Units, Other Share-Based Awards, Dividend Equivalents and Cash-Based Awards.
1.3. Duration
of the Plan. The Plan shall commence on the Effective Date, as described in Section 1.1, and shall remain in effect, subject to
the right of the Board of Directors to amend or terminate the Plan at any time pursuant to Article XV, until all Shares subject to it
shall have been delivered, and any restrictions on such Shares have lapsed, pursuant to the Plan’s provisions. However, in no event
may an Award be granted under the Plan on or after the date that is ten (10) years after the Effective Date; provided, however, no grants
of Incentive Stock Options (as such term is defined in Appendix B) may be made hereunder or under Appendix B after the tenth anniversary
of the date the Plan is approved by the Board.
A - 1
ARTICLE II.
DEFINITIONS
Certain terms used herein have the definitions given to them in the
first instance in which they are used. In addition, for purposes of the Plan, the following terms are defined as set forth below:
2.1. “Affiliate”
means (i) any Subsidiary; (ii) any Person that directly or indirectly controls, is controlled by or is under common control with the Company;
and/or (iii) to the extent provided by the Committee, any Person in which the Company has a significant interest. The term “control”
(including, with correlative meaning, the terms “controlled by” and “under common control with”), as applied to
any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies
of such Person, whether through the ownership of voting or other securities, by contract or otherwise.
2.2. “Applicable
Exchange” means the New York Stock Exchange, Nasdaq Stock Market or such other securities exchange as may at the applicable
time be the principal market for the Shares.
2.3. “Applicable
Law” means any applicable law, rule, regulation, statute, pronouncement, policy, interpretation, judgment, order or decree
of any federal, provincial, state or local governmental, regulatory or adjudicative authority or agency, of any jurisdiction, and the
rules and regulations of any stock exchange or trading system on which the Shares are then traded or listed.
2.4. “Award”
means, individually or collectively, a grant under the Plan of Stock Options, Stock Appreciation Rights, Restricted Share Awards, Restricted
Share Units, Cash-Based Awards, Other Share-Based Awards and Dividend Equivalents.
2.5. “Award
Agreement” means either: (a) a written agreement entered into by the Company and a Participant setting forth the terms and
provisions applicable to an Award granted under the Plan, or (b) a written or electronic statement issued by the Company to a Participant
describing the terms and provisions of such Award, including any amendment or modification thereof. Subject to compliance with Applicable
Law, the Committee may provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet
or other non-paper means for the acceptance thereof and actions thereunder by a Participant.
2.6. “Beneficial
Ownership” (including correlative terms) shall have the meaning given such term in Rule 13d-3 promulgated under the Exchange
Act.
2.7. “Board”
or “Board of Directors” means the Board of Directors of the Company.
2.8. “Cash-Based
Award” means an Award, whose value is determined by the Committee, granted to a Participant, as described in Article XI.
2.9. “Cause”
means, unless otherwise provided in an Award Agreement, any of the following: (a) any fraud, embezzlement or felony or similar act by
the Participant (whether or not related to Participant’s relationship with the Company or any of its Affiliates); (b) an act of
moral turpitude by the Participant, or any act that causes significant injury to the reputation, business, assets, operations or business
relationship of the Company or an Affiliate; (c) any breach by the Participant of an agreement between the Company or any Affiliate and
the Participant, including, without limitation, breach of confidentiality, non-competition or non-solicitation covenants, or of any duty
of the Participant to the Company or any Affiliate thereof; (d) in case of an Employee, performance by an Employee of any act that entitles
the Company or an Affiliate (as applicable) to dismiss him without paying him any or partial severance pay in connection with such dismissal
under Applicable Law; or (e) any circumstances that constitute grounds for termination for cause as defined under the Participant’s
employment, consulting or service agreement with the Company or Affiliate, to the extent applicable.
2.10. “Change
of Control” means the occurrence of any of the following:
(a) an acquisition in one transaction or
a series of related transactions (other than directly from the Company or pursuant to Awards granted under the Plan or compensatory options
or other similar awards granted by the Company) by any Person of any Voting Securities of the Company, immediately after which such Person
has Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Company’s then outstanding Voting Securities;
provided, however, that in determining whether
a Change of Control has occurred pursuant to this Section 2.10(a), Voting Securities of the Company which are acquired in a Non-Control
Acquisition shall not constitute an acquisition that would cause a Change of Control;
(b) Any time at which individuals who, as
of the Effective Date, constitute the Board (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board; provided, however,
that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption
of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;
(c) the consummation of any merger, consolidation,
recapitalization or reorganization involving the Company unless:
(i) the shareholders
of the Company, immediately before such merger, consolidation, recapitalization or reorganization, own, directly or indirectly, immediately
following such merger, consolidation, recapitalization or reorganization, more than fifty percent (50%) of the combined voting power of
the outstanding Voting Securities of the corporation resulting from such merger or consolidation or reorganization (the “Company
Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities of the Company immediately
before such merger, consolidation, recapitalization or reorganization; and
(ii) the individuals
who were members of the Board immediately prior to the execution of the agreement providing for such merger, consolidation, recapitalization
or reorganization constitute at least a majority of the members of the board of directors of the Company Surviving Corporation, or a corporation
Beneficially Owning, directly or indirectly, a majority of the voting securities of the Company Surviving Corporation, and
(iii) no Person, other than
(A) the Company, (B) any Related Entity, (C) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to
such merger, consolidation, recapitalization or reorganization, was maintained by the Company, the Company Surviving Corporation, or any
Related Entity or (D) any Person who, together with its Affiliates, immediately prior to such merger, consolidation, recapitalization
or reorganization had Beneficial Ownership of fifty percent (50%) or more of the then outstanding Voting Securities of the Company, owns,
together with its Affiliates, Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Company Surviving
Corporation’s then outstanding Voting Securities (a transaction described in clauses (c)(i) through (c)(iii) above is referred to
herein as a “Non-Control Transaction”); or
(d) any sale, lease, exchange, transfer or
other disposition (in one transaction or a series of related transactions) of all or substantially all of the assets or business of the
Company to any Person (other than (A) a transfer or distribution to a Related Entity, or (B) a transfer or distribution to the Company’s
shareholders of the stock of a Related Entity or any other assets).
Notwithstanding the foregoing, a Change of Control shall not be deemed to occur solely
because any Person (the “Subject Person”) acquired Beneficial Ownership of
fifty percent (50%) or more of the combined voting power of the then outstanding Voting Securities of the Company as a result of the acquisition
of Voting Securities of the Company by the Company which, by reducing the number of Voting Securities of the Company then outstanding,
increases the proportional number of shares Beneficially Owned by the Subject Persons, provided
that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of Voting Securities by
the Company and (1) before such share acquisition by the Company the Subject Person becomes the Beneficial Owner of any new or additional
Voting Securities of the Company in a related transaction or (2) after such share acquisition by the Company the Subject Person becomes
the Beneficial Owner of any new or additional Voting Securities of the Company which in either case increases the percentage of the then
outstanding Voting Securities of the Company Beneficially Owned by the Subject Person, then a Change of Control shall be deemed to occur.
Solely for purposes of this Section 2.10, (1) “Affiliate”
shall mean, with respect to any Person, any other Person that, directly or indirectly, controls, is controlled by, or is under common
control with, such Person, and (2) “control” (including with correlative meanings,
the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person,
means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person,
whether through the ownership of voting securities or by contract or otherwise. Any Relative (for this purpose, “Relative”
means a spouse, child, parent, parent of spouse, sibling or grandchild) of an individual shall be deemed to be an Affiliate of such individual
for this purpose. None of the Company or any Person controlled by the Company shall be deemed to be an Affiliate of any holder of Shares.
2.11. “Committee”
means the Compensation Committee of the Board of Directors or a subcommittee thereof, or such other committee designated by the Board
to administer the Plan.
2.12. “Company
Surviving Corporation” has the meaning provided in Section 2.10(c)(i).
2.13. “Consultant”
means a consultant, advisor or independent contractor who is a natural person and who performs services for the Company or an Affiliate
in a capacity other than as an Employee or Director (or who is a personal services company that is wholly owned by such a service provider,
or the equivalent thereof, as determined by the Committee in its discretion.
2.14. “Director”
means any individual who is a member of the Board of Directors of the Company and/or any Affiliate.
2.15. “Disability”
means the inability of a Participant to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not
less than twelve (12) months, as determined by a medical doctor satisfactory to the Committee.
2.16. “Disaffiliation”
means an Affiliate’s ceasing to be an Affiliate for any reason (including as a result of a public offering, or a spin-off or sale
by the Company, of the stock of the Affiliate) or a sale of a division of the Company or an Affiliate.
2.17. “Dividend
Equivalents” means the equivalent value (in cash or Shares) of dividends that would otherwise be paid on the Shares subject
to an Award but that have not been issued or delivered, as described in Article X.
2.18. “Effective
Date” shall have the meaning ascribed to such term in Section 1.1.
2.19. “Employee”
means any person designated as an employee of the Company and/or an Affiliate on the payroll records thereof. An Employee shall not include
any individual during any period he or she is classified or treated by the Company or an Affiliate as an independent contractor, a consultant,
or any employee of an employment, consulting, or temporary agency or any other entity other than the Company and/or an Affiliate without
regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a common-law
employee of the Company and/or an Affiliate during such period. For the avoidance of doubt, a Director who would otherwise be an “Employee”
within the meaning of this Section 2.19 shall be considered an Employee for purposes of the Plan.
2.20. “Exchange
Act” means the Securities Exchange Act of 1934, as it may be amended from time to time, including the rules and regulations
promulgated thereunder and successor provisions and rules and regulations thereto.
2.21. “Fair
Market Value” means, if the Shares are listed on a national securities exchange, as of any given date, the closing price
for a Share on such date on the Applicable Exchange, or if Shares were not traded on the Applicable Exchange on such measurement date,
then on the next preceding date on which Shares are traded, all as reported by such source as the Committee may select. If the Shares
are not listed on a national securities exchange, Fair Market Value shall be determined by the Committee in good faith.
2.22. “Fiscal
Year” means the calendar year, or such other consecutive twelve-month period as the Committee may select.
2.23. “Freestanding
SAR” means an SAR that is granted independently of any Options, as described in Article VII.
2.24. “Grant
Price” means the price established at the time of grant of a SAR pursuant to Article
VII, used to determine whether there is any payment due upon exercise of the SAR.
2.25. “Insider”
means an individual who is, on the relevant date, an officer, director or ten percent (10%) Beneficial Owner of any class of the Company’s
equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Committee in accordance with Section
16 of the Exchange Act.
2.26. “Non-Control
Acquisition” means an acquisition (whether by merger, stock purchase, asset purchase or otherwise) by (a) an employee benefit
plan (or a trust forming a part thereof) maintained by (i) the Company or (ii) any corporation or other Person of which fifty percent
(50%) or more of its total value or total voting power of its Voting Securities or equity interests is owned, directly or indirectly,
by the Company (a “Related Entity”); (b) the Company or any Related Entity;
(c) any Person in connection with a Non-Control Transaction; or (d) any Person that owns, together with its Affiliates, Beneficial Ownership
of fifty percent (50%) or more of the outstanding Voting Securities of the Company on the Effective Date.
2.27. “Non-Control
Transaction” shall have the meaning provided in Section 2.10(c).
2.28. “Non-Employee
Director” means a Director who is not an Employee.
2.29. “Notice”
means notice provided by a Participant to the Company in a manner prescribed by the Committee.
2.30. “Option”
or “Stock Option” means a Stock Option, as described in Article VI.
2.31. “Option
Price” means the price at which a Share may be purchased by a Participant pursuant to an Option.
2.32. “Other
Share-Based Award” means an equity-based or equity-related Award described in Section 9.1, granted in accordance with the
terms and conditions set forth in Article IX.
2.33. “Participant”
means any eligible individual as set forth in Article V who holds one or more outstanding Awards.
2.34. “Period
of Restriction” means the period of time during which Restricted Shares or Restricted Share Units are subject to a substantial
risk of forfeiture, or, as applicable, the period of time within which performance is measured for purposes of determining whether such
an Award has been earned, and, in the case of Restricted Shares, the transfer of Restricted Shares is limited in some way, in each case
in accordance with Article VIII.
2.35. “Person”
means “person” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange Act, including any individual,
corporation, limited liability company, partnership, trust, unincorporated organization, government or any agency or political subdivision
thereof, or any other entity or any group of persons.
2.36. “Restricted
Shares” means an Award granted to a Participant pursuant to Article VIII.
2.37. “Restricted
Share Unit” means an Award, whose value is equal to a Share, granted to a Participant pursuant to Article VIII.
2.38. “Rule
16b-3” means Rule 16b-3 under the Exchange Act, or any successor rule, as the same may be amended from time to time.
2.39. “SEC”
means the Securities and Exchange Commission.
2.40. “Securities
Act” means the Securities Act of 1933, as it may be amended from time to time, including the rules and regulations promulgated
thereunder and successor provisions and rules and regulations thereto.
2.41. “Share”
means an ordinary share, par NIS 1.75 each (including any new, additional or different shares or securities resulting from any change
in corporate capitalization as listed in Section 4.3).
2.42. “Stock
Appreciation Right” or “SAR” means an Award, granted as a Freestanding
SAR or in connection with a related Option (a “Tandem SAR”), designated as
an SAR, pursuant to the terms of Article VII.
2.43. “Subject
Person” has the meaning provided in Section 2.10.
2.44. “Subplan”
means additional incentive compensation plans as may be established by the Board within the parameters and in accordance with the overall
terms and provisions of the Plan as may be needed to facilitate local administration of the Plan in any jurisdiction in which the Company
or an Affiliate operate in and to conform the Plan to the legal requirements of any such jurisdiction or to allow for favorable tax treatment
under any applicable provision of tax law, including, without limitation, Appendix A – Israel, Appendix B – United States,
attached hereto and other appendices that may be attached to this Plan.
2.45. “Subsidiary”
means any present or future corporation which is or would be a subsidiary of the Company as determined by the Committee.
2.46. “Substitute
Awards” means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, options
or other awards previously granted, or the right or obligation to grant future options or other awards, by a company acquired by the Company
and/or an Affiliate or with which the Company and/or an Affiliate combines, or otherwise in connection with any merger, consolidation,
acquisition of property or stock, or reorganization involving the Company or an Affiliate.
2.47. “Tandem
SAR” means an SAR that is granted in connection with a related Option pursuant to Article VII.
2.48. “Termination”
means the termination of the applicable Participant’s employment with, or performance of services for, the Company or any Affiliate
under any circumstances, including, without limitation, termination by resignation, discharge, death, disability, and retirement. Unless
otherwise determined by the Committee, a Termination shall not be considered to have occurred in the case of: (i) sick leave; (ii)
military leave; (iii) any other bona fide
leave of absence approved by the Committee; (iv) changes in status from Director to advisory director; (v) transfers between locations
of the Company or between or among the Company and/or an Affiliate or Affiliates, including, whenever there was a termination of employment
or service of Participant and simultaneous reemployment (or commencement of service or employment) or continuing employment or service
of a Participant by the Company or any Affiliate; or (vi) if so determined by the Committee, any change in status between service as an
Employee, Director or Consultant if such individual continues to perform bona fide
services for the Company or an Affiliate. A Participant employed by, or performing services for, an Affiliate or a division of the
Company or of an Affiliate shall be deemed to incur a Termination if, as a result of a Disaffiliation, such Affiliate or division ceases
to be an Affiliate or such a division, as the case may be, and the Participant does not immediately thereafter become an employee of,
or service provider for, the Company or another Affiliate. The Committee shall have the discretion to determine whether and to what
extent the vesting of any Awards shall be tolled during any paid or unpaid leave of absence; provided,
however, that, in the absence of such determination, vesting for all Awards shall be tolled
during any such unpaid leave (but not for a paid leave).
2.49. “Voting
Securities” shall mean, with respect to any Person that is a corporation, all outstanding voting securities of such Person
entitled to vote generally in the election of the board of directors of such Person.
ARTICLE III.
ADMINISTRATION
3.1. General.
The Committee shall have exclusive authority to operate, manage and administer the Plan including but not limited to authorizing and administering
Subplans all in accordance with its terms and conditions. Notwithstanding the foregoing, in its absolute discretion, the Board may at
any time and from time to time exercise any and all rights, duties and responsibilities of the Committee under the Plan, including establishing
procedures to be followed by the Committee, but excluding matters which under any applicable law, regulation or rule, including any exemptive
rule under Section 16 of the Exchange Act (including Rule 16b-3), are required to be determined in the sole discretion of the Committee.
If and to the extent that the Committee may not operate in respect of any matter pursuant to Applicable Law, does not exist or cannot
function, the Board may take any action under the Plan that would otherwise be the responsibility of the Committee, subject to the limitations
set forth in the immediately preceding sentence. Accordingly, in any such case described in the immediately preceding sentence,
any reference to the “Committee” shall also refer to the Board.
3.2. Committee.
The members of the Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board of Directors.
3.3. Authority
of the Committee. The Committee shall have full discretionary authority to grant or, when so restricted by applicable law,
recommend the Board to grant, pursuant to the terms of the Plan, Awards to those individuals who are eligible to receive Awards under
the Plan. Except as limited by law or by the Articles of Association of the Company, and subject to the provisions herein, the Committee
shall have full power, in accordance with the other terms and provisions of the Plan, to:
(a) select
Employees, Non-Employee Directors and Consultants who may receive Awards under the Plan and become Participants;
(b) determine
eligibility for participation in the Plan and decide all questions concerning eligibility for, and the amount of, Awards under the Plan;
(c) determine
the sizes and types of Awards;
(d) determine
the terms and conditions of Awards, including the Option Prices of Options and the Grant Prices of SARs;
(e) grant
Awards as an alternative to, or as the form of payment for grants or rights earned or payable under, other bonus or compensation plans,
arrangements or policies of the Company or an Affiliate;
(f) grant Substitute Awards
on such terms and conditions as the Committee may prescribe;
(g) make all determinations
under the Plan concerning Termination of any Participant’s employment or service with the Company or an Affiliate, including whether
such Termination occurs by reason of cause, disability, retirement or in connection with a Change of Control and whether a leave constitutes
a Termination;
(h) determine
whether a Change of Control shall have occurred;
(i) construe and
interpret the Plan and any agreement or instrument entered into under the Plan, including any Subplan and Award Agreement;
(j) establish and
administer any terms, conditions, restrictions, limitations, forfeiture, vesting or exercise schedule, and other provisions of or relating
to any Award;
(k) establish and administer
any performance goals in connection with any Awards, including performance criteria and applicable performance periods, determine the
extent to which any performance goals and/or other terms and conditions of an Award are attained or are not attained;
(l) construe
any ambiguous provisions, correct any defects, supply any omissions and reconcile any inconsistencies in the Plan, Subplan and/or any
Award Agreement or any other instrument relating to any Awards;
(m) establish, adopt,
amend, waive and/or rescind rules, regulations, procedures, guidelines, forms and/or instruments for the Plan’s operation or administration;
(n) make
all valuation determinations relating to Awards and the payment or settlement thereof;
(o) grant
waivers of terms, conditions, restrictions and limitations under the Plan or applicable to any Award, or accelerate the vesting or exercisability
of any Award in circumstances involving the grantee’s death or disability;
(p) subject
to the provisions of Article XV, amend or adjust the terms and conditions of any outstanding Award and/or adjust the number and/or class
of shares of stock subject to any outstanding Award;
(q) at any time and
from time to time after the granting of an Award, specify such additional terms, conditions and restrictions with respect to such Award
as may be deemed necessary or appropriate to ensure compliance with any and all applicable laws or rules, including terms, restrictions
and conditions for compliance with applicable securities laws or listing rules, methods of withholding or providing for the payment of
required taxes and restrictions regarding a Participant’s ability to exercise Options through a cashless (broker-assisted) exercise;
(r) offer to buy
out an Award previously granted, based on such terms and conditions as the Committee shall establish with and communicate to the Participant
at the time such offer is made;
(s) determine whether,
and to what extent and under what circumstances Awards may be settled in cash, Shares or other property or canceled or suspended;
(t) establish any
“blackout” period that the Committee in its sole discretion deems necessary or advisable; and
(u) exercise
all such other authorities, take all such other actions and make all such other determinations as it deems necessary or advisable for
the proper operation and/or administration of the Plan.
3.4. Award
Agreements. The Committee shall, subject to applicable laws and rules, determine the date an Award is granted. Each
Award shall be evidenced by an Award Agreement; however, two or more Awards granted to a single Participant may be combined in a single
Award Agreement. Unless required by Applicable Law, an Award Agreement shall not be a precondition to the granting of an Award; provided,
however, that (a) the Committee may, but need not, require as a condition to any Award
Agreement’s effectiveness, that such Award Agreement be executed on behalf of the Company and/or by the Participant to whom the
Award evidenced thereby shall have been granted (including by electronic signature or other electronic indication of acceptance), and
such executed Award Agreement be delivered to the Company, and (b) no person shall have any rights under any Award unless and until the
Participant to whom such Award shall have been granted has complied with the applicable terms and conditions of the Award. The Committee
shall prescribe the form of all Award Agreements, and, subject to the terms and conditions of the Plan, shall determine the content of
all Award Agreements. Any Award Agreement may be supplemented or amended in writing from time to time as approved by the Committee;
provided that the terms and conditions of any such Award Agreement as supplemented or amended
are not inconsistent with the provisions of the Plan. In the event of any dispute or discrepancy concerning the terms of an Award,
the records of the Committee or its designee shall be determinative.
3.5. Discretionary
Authority; Decisions Binding. The Committee shall have full discretionary authority in all matters related to the discharge
of its responsibilities and the exercise of its authority under the Plan. All determinations, decisions, actions and interpretations
by the Committee with respect to the Plan and any Award Agreement, and all related orders and resolutions of the Committee shall be final,
conclusive and binding on all Participants, the Company and its shareholders, any Affiliate and all persons having or claiming to have
any right or interest in or under the Plan and/or any Award Agreement. The Committee shall consider such factors as it deems relevant
to making or taking such decisions, determinations, actions and interpretations, including the recommendations or advice of any Director
or officer or employee of the Company, any director, officer or employee of an Affiliate and such attorneys, consultants and accountants
as the Committee may select in its sole and absolute discretion. A Participant or other holder of an Award may contest a decision
or action by the Committee with respect to such person or Award only on the grounds that such decision or action was arbitrary or capricious
or was unlawful, and any review of such decision or action shall be limited to determining whether the Committee’s decision or action
was arbitrary or capricious or was unlawful.
3.6. Attorneys;
Consultants. The Committee may consult with counsel who may be counsel to the Company. The Committee may, with the
approval of the Board, employ such other attorneys and/or consultants, accountants, appraisers, brokers, agents and other persons, any
of whom may be an Employee, as the Committee deems necessary or appropriate. The Committee, the Company and its officers and Directors
shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall not incur any liability
for any action taken in good faith in reliance upon the advice of such counsel or other persons.
3.7. Delegation
of Administration. Except to the extent prohibited or restricted by applicable law, including any applicable exemptive rule
under Section 16 of the Exchange Act (including Rule 16b-3), or the applicable rules of a stock exchange, the Committee may, in its discretion,
allocate all or any portion of its responsibilities and powers under this Article III to any one or more of its members and/or delegate
all or any part of its responsibilities and powers under this Article III to any person or persons selected by it who are (i) not subject
to the reporting and other provisions of Section 16 of the Exchange Act and (ii) not members of the delegated committee. In addition,
the Committee may not delegate its authority to correct defects, omissions or inconsistencies in the Plan. Any such authority delegated
or allocated by the Committee under this Section 3.7 shall be exercised in accordance with the terms and conditions of the Plan and any
rules, regulations or administrative guidelines that may from time to time be established by the Committee, and any such allocation or
delegation may be revoked by the Committee at any time.
ARTICLE IV.
SHARES SUBJECT TO THE PLAN
4.1. Number
of Shares Available for Issuance. The shares subject to Awards granted under the Plan shall be Shares. Such Shares subject
to the Plan may be authorized and unissued shares (which will not be subject to preemptive rights), Shares held in treasury by the Company,
Shares purchased on the open market or by private purchase or any combination of the foregoing. Subject to adjustment as provided
in Section 4.3, the total number of Shares that may be issued pursuant to Awards under the Plan shall be 1,205,520 Shares.
From and after the Effective Date, no further grants or awards shall be made under the ReWalk Robotics Ltd. 2014 Incentive Compensation
Plan (the “Prior Plan”); provided,
however, grants or awards made under the Prior Plan before the Effective Date shall continue
in effect in accordance with their terms.
4.2. Rules for Calculating
Shares Issued.
(a) Shares underlying Awards (or awards under the
Prior Plan) that are forfeited (including any Shares subject to an Award (or any such other award) that are repurchased by the Company
due to failure to meet any applicable condition), cancelled, terminated or expire unexercised shall be available for issuance pursuant
to future Awards. Shares underlying Awards (or awards under the Prior Plans) that are settled in cash in lieu of issuance of Shares shall
not be available for issuance pursuant to future Awards.
(b) Any Shares tendered in order to pay the
Option Price of an Option or other purchase price of an Award (or the option price or other purchase price of any option or other award
under the Prior Plan) or withholding tax obligations with respect to an Award (or any awards under the Prior Plan), shall not be available
for issuance pursuant to future Awards.
(c) If any Shares subject to an Award (or any award
under the Prior Plan) are not delivered to a Participant because (A) such Shares are withheld to pay the Option Price or other purchase
price of such Award (or any award under the Prior Plan), or withholding tax obligations with respect to such Award (or other such award)
or (B) a payment upon exercise of a Stock Appreciation Right (or stock appreciation right under the Prior Plan) is made in Shares, the
number of Shares subject to the exercised or purchased portion of any such Award that are not delivered to the Participant shall not be
available for issuance pursuant to future Awards.
(d) Any Shares delivered under the Plan upon exercise
or satisfaction of Substitute Awards shall not reduce the Shares available for issuance under the Plan.
(e) In the event the Company repurchases Shares on the open market,
such Shares shall not be added to the Shares available for issuance under the Plan.
4.3. Adjustment
Provisions. Notwithstanding any other provisions of the Plan to the contrary, in the event of (a) any dividend (excluding
any ordinary dividend) or other distribution (whether in the form of cash, Shares, other securities or other property), recapitalization,
stock split, reverse stock split, reorganization, merger, consolidation, split-up, split-off, combination, repurchase or exchange of Shares
or other securities of the Company, issuance of warrants or other rights to acquire Shares or other securities of the Company, or other
similar corporate transaction or event (including a Change of Control) that affects the Shares, or (b) any unusual or nonrecurring
events (including a Change of Control) affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate,
or changes in applicable rules, rulings, regulations or other requirements of any governmental body or securities exchange or inter-dealer
quotation system, accounting principles or law, such that in either case an adjustment is determined by the Committee in its sole discretion
to be necessary or appropriate, then subject to Applicable Law, the Committee shall make any such adjustments in such manner as it may
deem equitable, without obtaining Participants' consent, including any or all of the following:
(i) adjusting
any or all of (A) the number of Shares or other securities of the Company (or number and kind of other securities or other property)
that may be delivered in respect of Awards or with respect to which Awards may be granted under the Plan and (B) the terms of any
outstanding Award, including (1) the number of Shares or other securities of the Company (or number and kind of other securities
or other property) subject to outstanding Awards or to which outstanding Awards relate, (2) the Option Price or Grant Price with
respect to any Award or (3) any applicable performance measures;
(ii) providing
for a substitution or assumption of Awards, accelerating the exercisability of, lapse of restrictions (including any Period of Restriction)
on, or termination of, Awards or providing for a period of time for exercise prior to the occurrence of such event; and
(iii) cancelling any one
or more outstanding Awards and causing to be paid to the holders thereof, in cash, Shares, other securities or other property, or any
combination thereof, the value of such Awards, if any, as determined by the Committee (which, if applicable, may be based upon the price
per Share received or to be received by other shareholders of the Company in such event, as the Committee shall resolve), including, in
the case of an outstanding Option or SAR, a cash payment in an amount equal to the excess, if any, of the Fair Market Value (as of a date
specified by the Committee) of the Shares subject to such Option or SAR over the aggregate Option Price or Grant Price of such Option
or SAR, respectively (it is being understood that, in such event, any Option or SAR having a per share Option Price or Grant Price equal
to, or in excess of, the Fair Market Value of a Share may be canceled and terminated without any payment or consideration therefor); provided,
however, that in the case of any “equity restructuring” (within the meaning
of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation — Stock Compensation, or any successor
pronouncement (“ASC 718”), the Committee shall make an equitable or proportionate
adjustment to outstanding Awards to reflect such equity restructuring. Any adjustments under this Section 4.3 shall be made
in a manner that does not adversely affect the exemption provided pursuant to Rule 16b-3 under the Exchange Act, to the extent applicable.
Any actions or determinations of the Committee under this Section 4.3 need not be uniform as to all outstanding Awards, nor treat all
Participants identically. All determinations of the Committee as to adjustments, if any, under this Section 4.3 shall be conclusive
and binding for all purposes.
4.4. No
Limitation on Corporate Actions. The existence of the Plan and any Awards granted hereunder shall not affect in any way the
right or power of the Company or any Affiliate to make or authorize any adjustment, recapitalization, reorganization or other change in
its capital structure or business structure, any merger or consolidation, any issuance of debt, preferred or prior preference stock ahead
of or affecting the Shares, additional shares of capital stock or other securities or subscription rights thereto, any dissolution or
liquidation, any sale or transfer of all or part of its assets or business or any other corporate act or proceeding.
4.5. Maximum
Awards to Non-Employee Directors. Notwithstanding anything to the contrary in this Plan, the value of all Awards awarded
under this Plan and all other cash compensation paid by the Company to any Non-Employee Director in any calendar year shall not exceed
$500,000. For the purpose of this limitation, the value of any Award shall be its grant date fair value, as determined in accordance
ASC 718, but excluding the impact of estimated forfeitures related to service-based vesting provisions.
ARTICLE V.
ELIGIBILITY AND PARTICIPATION
5.1. Eligibility.
Employees, Non-Employee Directors and Consultants shall be eligible to become Participants and receive Awards in accordance with the terms
and conditions of the Plan.
5.2. Actual
Participation. Subject to the provisions of the Plan, the Committee may, from time to time, select Participants from all
eligible Employees, Non-Employee Directors and Consultants and shall determine the nature and amount of each Award.
ARTICLE VI.
STOCK OPTIONS
6.1. Grant
of Options. Subject to the terms and provisions of the Plan, Options may be granted to Participants in such number, and upon
such terms, and at any time and from time to time as shall be determined by the Committee. The Committee may grant an Option
or provide for the grant of an Option, either from time to time in the discretion of the Committee or automatically upon the occurrence
of specified events, including the achievement of performance goals, the satisfaction of an event or condition within the control of the
recipient of the Option or within the control of others.
6.2. Award
Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify the Option Price, the maximum duration
of the Option, the number of Shares to which the Option pertains, the conditions upon which the Option shall become exercisable and such
other provisions as the Committee shall determine, which are not inconsistent with the terms of the Plan.
6.3. Option
Price. The Option Price for each Option shall be determined by the Committee and set forth in the Award Agreement; provided
that the Option Price shall not be less than 100 percent of the Fair Market Value on the date of grant; and provided
further that Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3, in the form of stock options,
shall have an Option Price that is intended to maintain the economic value of the Award that was replaced or adjusted, as determined by
the Committee.
6.4. Duration
of Options. Each Option granted to a Participant shall expire at such time as the Committee shall determine at the time of
grant and set forth in the Award Agreement, but no Option shall be exercisable more than ten years after the date the Option is granted.
6.5. Exercise
of Options. Options shall be exercisable at such times and be subject to such restrictions and conditions as the Committee
shall in each instance determine and set forth in the Award Agreement, which need not be the same for each grant or for each Option or
Participant. The Committee, in its discretion, may allow a Participant to exercise an Option that has not otherwise become exercisable
pursuant to the applicable Award Agreement, in which case the Shares then issued shall be Restricted Shares having a Period of Restriction
analogous to the exercisability provisions of the Option. In the event that any portion of an exercisable Option is scheduled to
expire or terminate pursuant to the Plan or the applicable Award Agreement (other than due to Termination of Service for Cause) and both
(x) the date on which such portion of the Option is scheduled to expire or terminate falls during a Company blackout trading period
applicable to the Participant (whether such period is imposed at the election of the Company or is required by applicable law to be imposed)
and (y) the Option Price per Share of such portion of the Option is less than the Fair Market Value of a Share, then on the date
that such portion of the Option is scheduled to expire or terminate, such portion of the Option (to the extent not previously exercised
by the Participant) shall be automatically exercised on behalf of the Participant through a “net exercise” (as described in
Section 6.6(c)) and minimum withholding taxes due (if any) upon such automatic exercise shall be satisfied by withholding of Shares (as
described in Section 16.2(a)). The period of time over which a Nonqualified Stock Option may be exercised shall be automatically
extended if on the scheduled expiration date or termination date (other than due to Termination of Service for Cause) of such Option the
Participant’s exercise of such Option would violate an applicable law (except under circumstances described in the preceding sentence);
provided, however, that during such extended
exercise period the Option may only be exercised to the extent the Option was exercisable in accordance with its terms immediately prior
to such scheduled expiration date or termination date; provided further,
however, that such extended exercise period shall end not later than thirty (30) days after
the exercise of such Option first would no longer violate such law.
6.6. Payment.
Options shall be exercised by the delivery of a written notice of exercise to the Company, in a form specified or accepted by the Committee,
or by complying with any alternative exercise procedures that may be authorized by the Committee, setting forth the number of Shares with
respect to which the Option is to be exercised, accompanied by full payment for such Shares, which shall include applicable taxes, if
any, in accordance with Article XVI. The Option Price upon exercise of any Option shall be payable to the Company in full by certified
or bank check or such other instrument as the Committee may accept. If approved by the Committee, and subject to any such terms,
conditions and limitations as the Committee may prescribe and to the extent permitted by Applicable Law, payment of the Option Price,
in full or in part, may also be made as follows:
(a) In
the form of unrestricted and unencumbered Shares (by actual delivery of such Shares or by attestation) already owned by the Participant
exercising such Option, or by such Participant and his or her spouse jointly (based on the Fair Market Value of the Shares on the date
the Option is exercised), provided that such already owned Shares must have been either
previously acquired by the Participant on the open market or held by the Participant for at least six (6) months at the time of exercise
(or meet any such other requirements as the Committee may determine are necessary in order to avoid an accounting earnings charge on account
of the use of such Shares to pay the Option Price);
(b)
By delivering a properly executed exercise notice to the Company, together with a copy of irrevocable instructions to a broker to deliver
promptly to the Company the amount of sale or loan proceeds necessary to pay the Option Price, and, if requested, the amount of any federal,
state, local or non-United States withholding taxes;
(c) By
a “net exercise” pursuant to which the Participant instructs the Company to withhold a number of Shares otherwise deliverable
to the Participant pursuant to the Option having an aggregate Fair Market Value on the date of exercise equal to the product of (i) the
Option Price multiplied by (ii) the number of Shares in respect of which the Option shall have been exercised; or
(d) By any
other method approved or accepted by the Committee in its discretion.
Subject to any governing rules or regulations, as soon as practicable
after receipt of a written notification of exercise and full payment in accordance with the preceding provisions of this Section 6.6 and
satisfaction of tax obligations in accordance with Article XVI, the Company shall deliver to the Participant exercising an Option, in
the Participant’s name, evidence of book entry Shares, or, upon the Participant’s request, Share certificates, in an appropriate
amount based upon the number of Shares purchased under the Option, subject to Section 18.9. Unless otherwise determined by the Committee,
all payments under all of the methods described above shall be paid in United States dollars.
6.7. Rights
as a Shareholder. No Participant or other person shall become the beneficial owner of any Shares subject to an Option, nor
have any rights to dividends or other rights of a shareholder with respect to any such Shares, until the Participant has actually received
such Shares following exercise of his or her Option in accordance with the provisions of the Plan and the applicable Award Agreement.
6.8. Termination
of Service. Except as otherwise provided by Section 6.5 or in the applicable Award Agreement, an Option may be exercised
only to the extent that it is then exercisable, and if at all times during the period beginning with the date of granting of such Option
and ending on the date of exercise of such Option the Participant is an Employee, Non-Employee Director or Consultant, and shall terminate
immediately upon a Termination of Service of the Participant. An Option shall cease to become exercisable upon a Termination of
Service of the holder thereof. Notwithstanding the foregoing provisions of this Section 6.8 to the contrary, the Committee may determine
in its discretion that an Option may be exercised following any such Termination of Service, whether or not exercisable at the time of
such Termination of Service; provided, however,
that in no event may an Option be exercised after the expiration date of such Option specified in the applicable Award Agreement, except
as otherwise provided by Section 6.5.
ARTICLE VII.
STOCK APPRECIATION RIGHTS
7.1. Grant
of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Participants at any time and from time to
time as shall be determined by the Committee. The Committee may grant an SAR (a) in connection and simultaneously with the grant
of an Option (a Tandem SAR) or (b) independent of, and unrelated to, an Option (a Freestanding SAR). The Committee shall have complete
discretion in determining the number of Shares to which an SAR pertains (subject to Article IV) and, consistent with the provisions of
the Plan, in determining the terms and conditions pertaining to any SAR.
7.2. Grant
Price. The Grant Price for each SAR shall be determined by the Committee and set forth in the Award Agreement; provided
that the Grant Price for each SAR shall not be less than 100 percent of the Fair Market Value on the date of grant; and provided
further that Substitute Awards or Awards granted in connection with an adjustment provided for in Section 4.3, in the form of stock appreciation
rights, shall have a Grant Price that is intended to maintain the economic value of the Award that was replaced or adjusted, as determined
by the Committee. The Grant Price of a Tandem SAR shall be equal to the Option Price of the related Option.
7.3. Exercise
of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender
of the right to exercise the equivalent portion of the related Option. A Tandem SAR shall be exercisable only when and to the extent
the related Option is exercisable and may be exercised only with respect to the Shares for which the related Option is then exercisable.
A Tandem SAR shall entitle a Participant to elect, in the manner set forth in the Plan and the applicable Award Agreement, in lieu of
exercising his or her unexercised related Option for all or a portion of the Shares for which such Option is then exercisable pursuant
to its terms, to surrender such Option to the Company with respect to any or all of such Shares and to receive from the Company in exchange
therefor a payment described in Section 7.7. An Option with respect to which a Participant has elected to exercise a Tandem SAR
shall, to the extent of the Shares covered by such exercise, be canceled automatically and surrendered to the Company. Such Option
shall thereafter remain exercisable according to its terms only with respect to the number of Shares as to which it would otherwise be
exercisable, less the number of Shares with respect to which such Tandem SAR has been so exercised.
7.4. Exercise
of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion,
in accordance with the Plan, determines and sets forth in the Award Agreement. An Agreement may provide that the period of time
over which a Freestanding SAR be exercised shall automatically be extended if on the scheduled expiration date of such SAR the Participant’s
exercise of such SAR would violate an applicable law; provided, however,
that during such extended exercise period the SAR may only be exercised to the extent the SAR was exercisable in accordance with its terms
immediately prior to such scheduled expiration date; provided further,
however, that such extended exercise period shall end not later than thirty (30) days after
the exercise of such SAR first would no longer violate such law.
7.5. Award
Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the number of Shares to which the SAR
pertains, the Grant Price, the term of the SAR, and such other terms and conditions as the Committee shall determine in accordance with
the Plan.
7.6. Term
of SARs. The term of an SAR granted under the Plan shall be determined by the Committee and set forth in the Award Agreement;
provided, however, that the term of a SAR
may not exceed ten years; and provided, further,
that the term of any Tandem SAR shall be the same as the related Option.
7.7. Payment
of SAR Amount. An election to exercise SARs shall be deemed to have been made on the date of Notice of such election to the
Company. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by
multiplying:
(a) the
excess of the Fair Market Value of a Share on the date of exercise over the Grant Price of the SAR; by
(b) the
number of Shares with respect to which the SAR is exercised.
Notwithstanding the foregoing provisions of this
Section 7.7 to the contrary, the Committee may establish and set forth in the applicable Award Agreement a maximum amount per Share that
will be payable upon the exercise of an SAR. At the discretion of the Committee, such payment upon exercise of an SAR shall be in
cash, in Shares of equivalent Fair Market Value, or in some combination thereof.
7.8. Rights
as a Shareholder. A Participant receiving an SAR shall have the rights of a Shareholder only as to Shares, if any, actually
issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance with the provisions
of the Plan and the applicable Award Agreement, and not with respect to Shares to which such Award relates but which are not actually
issued to such Participant.
7.9. Termination
of Service. Except as otherwise provided by Section 6.5 (in the case of Tandem SARs) or in Section 7.4 (in the case of Freestanding
SARs) or in the applicable Award Agreement, a SAR may be exercised only to the extent that it is then exercisable, and if at all times
during the period beginning with the date of granting of such SAR and ending on the date of exercise of such SAR the Participant is an
Employee, Non-Employee Director or Consultant, and shall terminate immediately upon a Termination of Service of the Participant.
A SAR shall cease to become exercisable upon a Termination of Service of the holder thereof. Notwithstanding the foregoing provisions
of this Section 7.9 to the contrary, the Committee may determine in its discretion that a SAR may be exercised following any such Termination
of Service, whether or not exercisable at the time of such Termination of Service; provided,
however, that in no event may a SAR be exercised after the expiration date of such SAR
specified in the applicable Award Agreement, except as provided in Section 6.5 (in the case of Tandem SARs) or in Section 7.4 (in the
case of Freestanding SARs).
ARTICLE VIII.
RESTRICTED SHARES AND
RESTRICTED SHARE UNITS
8.1. Awards
of Restricted Shares and Restricted Share Units. Subject to the terms and provisions of the Plan, the Committee, at any time
and from time to time, may grant Restricted Shares and/or Restricted Share Units to Participants in such amounts as the Committee shall
determine. Awards of Restricted Shares may be made with or without the requirement of a cash payment from the Participant to whom
such Award is made in exchange for, or as a condition precedent to, the completion of such Award and the issuance of Restricted Shares,
and any such required cash payment shall be set forth in the applicable Award Agreement. Subject to the terms and conditions of this Article
VIII and the Award Agreement, upon delivery of Restricted Shares to a Participant, or creation of a book entry evidencing a Participant’s
ownership of Restricted Shares, pursuant to Section 8.6, the Participant shall have all of the rights of a shareholder with respect to
such Shares, subject to the terms and restrictions set forth in this Article VIII or the applicable Award Agreement or as determined by
the Committee.
8.2. Award
Agreement. Each Restricted Share and/or Restricted Share Unit Award shall be evidenced by an Award Agreement that shall specify
the Period of Restriction, the number of Restricted Shares or the number of Restricted Share Units granted, and such other provisions
as the Committee shall determine in accordance with the Plan.
8.3. Nontransferability
of Restricted Shares. Except as provided in this Article VIII, Restricted Shares may not be sold, transferred, pledged, assigned,
encumbered, alienated, hypothecated or otherwise disposed of until the end of the applicable Period of Restriction established by the
Committee and specified in the Restricted Share Award Agreement.
8.4. Period
of Restriction and Other Restrictions. The Period of Restriction applicable to an Award of Restricted Shares or Restricted
Share Units shall lapse based on a Participant’s continuing service or employment with the Company or an Affiliate, the achievement
of performance goals, the satisfaction of other conditions or restrictions or upon the occurrence of other events, in each case, as determined
by the Committee, at its discretion, and stated in the Award Agreement.
8.5. Delivery
of Shares and Settlement of Restricted Share Units. Upon the expiration of the Period of Restriction with respect to any
Restricted Shares, the restrictions set forth in the applicable Award Agreement shall be of no further force or effect with respect to
such Shares, except as set forth in such Award Agreement. If applicable stock certificates are held by the Secretary of the Company
or an escrow holder, upon such expiration, the Company shall deliver to the Participant, his beneficiary or trustee (as applicable), without
charge, the stock certificate evidencing the Restricted Shares that have not then been forfeited and with respect to which the Period
of Restriction has expired. Unless otherwise provided by the Committee in an Award Agreement, upon the expiration of the Period
of Restriction with respect to any outstanding Restricted Share Units, the Company shall deliver to the Participant, or his beneficiary
or trustee (as applicable), without charge, one Share for each such outstanding Restricted Share Unit; provided,
however, that the Committee may, in its discretion, elect to (i) pay cash or part
cash and part Shares in lieu of delivering only Shares in respect of such Restricted Share Units or (ii) defer the delivery of Shares
beyond the expiration of the Period of Restriction; provided, however, (ii) shall not apply to any Restricted Share Units granted to a
US taxpayer unless such deferral also complies with the requirements of Section 409A of the Code (as such term is defined in Appendix
B). If a cash payment is made in lieu of delivering Shares, the amount of such payment shall be equal to the Fair Market Value of
such Shares as of the date on which the Period of Restriction lapsed with respect to such Restricted Share Units, less applicable tax
withholdings in accordance with Article XVI.
8.6. Forms
of Restricted Share Awards. Each Participant who receives an Award of Restricted Shares shall be issued a stock certificate
or certificates evidencing the Shares covered by such Award registered in the name of such Participant or its trustee (as the case may
be), which certificate or certificates shall bear an appropriate legend, and, if the Committee determines that the Restricted Shares shall
be held by the Company or in escrow rather than delivered to the Participant or its trustee pending expiration of the Period of Restriction,
the Committee may require the Participant to additionally execute and deliver to the Company: (i) an escrow agreement satisfactory
to the Committee, if applicable, and (ii) an appropriate stock power (endorsed in blank) with respect to such Restricted Shares.
The Committee may require a Participant who receives a certificate or certificates evidencing a Restricted Share Award to immediately
deposit such certificate or certificates, together with a stock power or other appropriate instrument of transfer, endorsed in blank by
the Participant, with signatures guaranteed in accordance with the Exchange Act if required by the Committee, with the Secretary of the
Company or an escrow holder as provided in the immediately following sentence. The Secretary of the Company or such escrow holder
as the Committee may appoint shall retain physical custody of each certificate representing a Restricted Share Award until the Period
of Restriction and any other restrictions imposed by the Committee or under the Award Agreement with respect to the Shares evidenced by
such certificate expire or shall have been removed. The foregoing to the contrary notwithstanding, the Committee may, in its discretion,
provide that a Participant’s ownership of Restricted Shares prior to the lapse of the Period of Restriction or any other applicable
restrictions shall, in lieu of such certificates, be evidenced by a “book entry” (i.e.,
a computerized or manual entry) in the records of the Company or its designated agent in the name of the Participant or its trustee (as
the case may be) who has received such Award. Such records of the Company or such agent shall, absent manifest error, be binding
on all Participants who receive Restricted Share Awards evidenced in such manner. The holding of Restricted Shares by the Company
or such an escrow holder, or the use of book entries to evidence the ownership of Restricted Shares, in accordance with this Section 8.6,
shall not affect the rights of Participants as owners or beneficial owners of the Restricted Shares awarded to them, nor affect the restrictions
applicable to such Shares under the Award Agreement or the Plan, including the Period of Restriction.
8.7. Rights
as a Shareholder.
(a) Restricted
Shares. Participants holding Restricted Shares shall have all rights of a shareholder as to such Shares immediately upon
issuance of such Shares, subject to the terms and conditions of the Plan, the applicable Award Agreement and the Company's Articles of
Association; provided, however, that during
the Period of Restriction, the Committee may apply any restrictions to any cash dividends otherwise payable with respect to such Shares
while they are so held as the Committee deems appropriate. Except as set forth in the Award Agreement and subject to Applicable Law, in
the event of (A) any adjustment as provided in Section 4.3, or (B) any shares or securities are received as a dividend, or an extraordinary
dividend is paid in cash, on Restricted Shares, any new or additional Shares or securities or any extraordinary dividends paid in cash
received by a recipient of Restricted Shares shall be subject to the same terms and conditions, including the Period of Restriction, as
relate to the original Restricted Shares.
(b) Restricted
Share Units. A Participant receiving Restricted Share Units shall have the rights of a shareholder only as to Shares, if
any, actually issued to such Participant upon expiration of the Period of Restriction and satisfaction or achievement of the terms and
conditions of the Award, and in accordance with the provisions of the Plan and the applicable Award Agreement, and not with respect to
Shares to which such Award relates but which are not actually issued to such Participant.
8.8 Termination
of Service. Except as otherwise provided in this Section 8.8, during the Period of Restriction, any Restricted Share Units
and/or Restricted Shares held by a Participant or its trustee (as applicable) that are subject to such Period of Restriction shall be
forfeited and revert to the Company (or, if Restricted Shares were sold to the Participant, the Participant shall be required to resell
such Shares to the Company at a repurchase price equal to the lower of the original per share purchase price paid by the Participant,
subject to adjustment as provided in Section 4.3 of the Plan, or the current Fair Market Value of such Shares as of the date the Company
elects to exercise its repurchase rights) upon the Participant’s Termination or the failure to meet or satisfy any applicable performance
goals, vesting terms or other terms, conditions and restrictions to the extent set forth in the applicable Award Agreement. Each
applicable Award Agreement shall set forth the extent to which, if any, the Participant shall have the right to retain Restricted Share
Units and/or Restricted Shares, then subject to the Period of Restriction, following such Participant’s Termination. Such
provisions shall be determined in the sole discretion of the Committee, shall be included in the applicable Award Agreement, need not
be uniform among all such Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for, or circumstances
of, such Termination.
ARTICLE IX.
OTHER SHARE-BASED AWARDS
9.1. Other
Share-Based Awards. The Committee may grant types of equity-based or equity-related Awards not otherwise described by the
terms of the Plan (including the grant or offer for sale of unrestricted Shares), in such amounts and subject to such terms and conditions,
as the Committee shall determine. Such Other Share-Based Awards may involve the transfer of actual Shares to Participants, or payment
in cash or otherwise of amounts based on the value of Shares. The terms and conditions of such Awards shall be consistent with the Plan
and set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such Awards.
9.2. Value
of Other Share-Based Awards. Each Other Share-Based Award shall be expressed in terms of Shares or units based on Shares, as determined
by the Committee. The Committee may establish performance goals in its discretion, and any such performance goals shall be set forth in
the applicable Award Agreement. If the Committee exercises its discretion to establish performance goals, the number and/or value of Other
Share-Based Awards that will be paid out to the Participant will depend on the extent to which such performance goals are met.
9.3. Payment
of Other Share-Based Awards. Payment, if any, with respect to an Other Share-Based Award shall be made in accordance with
the terms of the Award, as set forth in the Award Agreement, in cash, Shares or a combination of cash and Shares, as the Committee determines.
9.4. Rights
as a Shareholder. A Participant receiving an Other Share-Based Award shall have the rights of a shareholder only as to Shares,
if any, actually issued to such Participant upon satisfaction or achievement of the terms and conditions of the Award, and in accordance
with the provisions of the Plan and the applicable Award Agreement, and not with respect to Shares to which such Award relates but which
are not actually issued to such Participant.
9.5. Termination
of Service. The Committee shall determine the extent to which the Participant shall have the right to receive Other Share-Based
Awards following the Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee, such
provisions may be included in the applicable Award Agreement but need not be uniform among all Other Share-Based Awards issued pursuant
to the Plan, and may reflect distinctions based on the reasons for Termination.
ARTICLE X.
DIVIDEND EQUIVALENTS
Unless otherwise provided by the Committee, no adjustment shall be made
in the Shares issuable or taken into account under Awards on account of cash dividends that may be paid or other rights that may be issued
to the holders of Shares prior to issuance of such Shares under such Award. The Committee may grant Dividend Equivalents based on
the dividends declared on Shares that are subject to any Award, including any Award the payment or settlement of which is deferred pursuant
to Section 18.5. Any Award of Dividend Equivalents may be credited as of the dividend payment dates, during the period between the
grant date of the Award and the date the Award becomes payable or terminates or expires, as determined by the Committee. Dividend Equivalents
may be subject to any limitations and/or restrictions determined by the Committee, provided that a Dividend Equivalent Right granted as
a component of, or related to, an Award of Restricted Stock Units shall provide that such Dividend Equivalent Right shall be settled only
upon settlement or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or
be forfeited or annulled under the same conditions as such Restricted Stock Unit Award. Dividend Equivalents shall be converted to cash
or additional Shares by such formula and at such time, and shall be paid at such times, as may be determined by the Committee.
ARTICLE XI.
CASH-BASED AWARDS
11.1. Grant
of Cash-Based Awards. Subject to the terms of the Plan, Cash-Based Awards may be granted to Participants in such amounts
and upon such terms, and at any time and from time to time, as shall be determined by the Committee, in accordance with the Plan.
A Cash-Based Award entitles the Participant who receives such Award to receive a payment in cash upon the attainment of applicable performance
goals for the applicable performance period, and/or satisfaction of other terms and conditions, in each case determined by the Committee,
and which shall be set forth in the Award Agreement. The terms and conditions of such Awards shall be consistent with the Plan and
set forth in the Award Agreement and need not be uniform among all such Awards or all Participants receiving such Awards.
11.2. Earning
and Payment of Cash-Based Awards. Cash-Based Awards shall become earned, in whole or in part, based upon the attainment of
performance goals specified by the Committee and/or the occurrence of any event or events and/or satisfaction of such terms and conditions,
including a Change of Control, as the Committee shall determine, either at or after the Grant Date. The Committee shall determine
the extent to which any applicable performance goals and/or other terms and conditions of a Cash-Based Award are attained or not attained
following conclusion of the applicable performance period. The Committee may, in its discretion, waive any such performance goals
and/or other terms and conditions relating to any such Award. Payment of earned Cash-Based Awards shall be as determined by the Committee
and set forth in the Award Agreement.
11.3. Termination
of Service. Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Cash-Based
Award following such Participant’s Termination. Such provisions shall be determined in the sole discretion of the Committee,
shall be included in the applicable Award Agreement, need not be uniform among all such Awards issued pursuant to the Plan, and may reflect
distinctions based on the reasons for Termination.
ARTICLE XII.
TRANSFERABILITY OF AWARDS;
BENEFICIARY DESIGNATION
12.1. Transferability
of Awards. Except as otherwise provided in Section 8.6 or Section 12.2 or a Participant’s Award Agreement or otherwise
determined at any time by the Committee, no Award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated
or hypothecated, other than by will or by the laws of descent and distribution; provided
that the Committee may permit further transferability, on a general or a specific basis, and may impose conditions and limitations on
any permitted transferability, subject to any applicable Period of Restriction. Further, except as otherwise provided in a Participant’s
Award Agreement or otherwise determined at any time by the Committee, or unless the Committee decides to permit further transferability,
subject any applicable Period of Restriction, all Awards granted to a Participant under the Plan, and all rights with respect to such
Awards, shall be exercisable or available during his or her lifetime only by or to such Participant. With respect to those Awards, if
any, that are permitted to be transferred to another Person, references in the Plan to exercise or payment related to such Awards by or
to the Participant shall be deemed to include, as determined by the Committee, the Participant’s permitted transferee. In
the event any Award is exercised by or otherwise paid to the executors, administrators, heirs or distributees of the estate of a deceased
Participant, or such a Participant’s beneficiary, or the transferee of an Award, in any such case, pursuant to the terms and conditions
of the Plan and the applicable Agreement and in accordance with such terms and conditions as may be specified from time to time by the
Committee, the Company shall be under no obligation to issue Shares thereunder unless and until the Company is satisfied, as determined
in the discretion of the Committee, that the person or persons exercising such Award, or to receive such payment, are the duly appointed
legal representative of the deceased Participant’s estate or the proper legatees or distributees thereof or the named beneficiary
of such Participant, or the valid transferee of such Award, as applicable. Any purported assignment, transfer or encumbrance of
an Award that does not comply with this Section 12.1 shall be void and unenforceable against the Company.
12.2. Beneficiary
Designation. Each Participant may, from time to time, name any beneficiary or beneficiaries who shall be permitted to exercise
his or her Option or SAR or to whom any benefit under the Plan is to be paid in case of the Participant’s death before he or she
fully exercises his or her Option or SAR or receives any or all of such benefit. Each such designation shall revoke all prior
designations by the same Participant, shall be in a form prescribed by the Company, and will be effective only when filed by the Participant
in writing with the Company during the Participant’s lifetime. In the absence of any such beneficiary designation, a Participant’s
unexercised Option or SAR, or amounts due but remaining unpaid to such Participant, at the Participant’s death, shall be exercised
or paid as designated by the Participant by will or by the laws of descent and distribution.
ARTICLE XIII.
RIGHTS OF PARTICIPANTS
13.1. Rights
or Claims. No person shall have any rights or claims under the Plan except in accordance with the provisions of the Plan
and any applicable Award Agreement. The liability of the Company and any Affiliate under the Plan is limited to the obligations expressly
set forth in the Plan, and no term or provision of the Plan may be construed to impose any further or additional duties, obligations,
or costs on the Company or any Affiliate thereof or the Board or the Committee not expressly set forth in the Plan. The grant of
an Award under the Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such
conditions, as are specified in the Plan as being applicable to such type of Award, or to all Awards, or as are expressly set forth in
the Award Agreement evidencing such Award. Without limiting the generality of the foregoing, neither the existence of the Plan nor
anything contained in the Plan or in any Award Agreement shall be deemed to:
| |
(a) |
give any Employee or Non-Employee Director the right to be retained
in the service of the Company and/or an Affiliate, whether in any particular position, at any particular rate of compensation, for any
particular period of time or otherwise; |
| |
(b) |
restrict in any way the right of the Company and/or an Affiliate to terminate, change or modify any Employee’s employment or
any Non-Employee Director’s service as a Director at any time with or without cause; |
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(c) |
confer on any Consultant any right of continued relationship with the Company and/or an Affiliate, or alter any relationship between
them, including any right of the Company or an Affiliate to terminate, change or modify its relationship with a Consultant; |
| |
(d) |
constitute a contract of employment or service between the Company or any Affiliate and any Employee, Non-Employee Director or Consultant,
nor shall it constitute a right to remain in the employ or service of the Company or any Affiliate; |
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(e) |
give any Employee, Non-Employee Director or Consultant the right to receive any bonus, whether payable in cash or in Shares, or in
any combination thereof, from the Company and/or an Affiliate, nor be construed as limiting in any way the right of the Company and/or
an Affiliate to determine, in its sole discretion, whether or not it shall pay any Employee, Non-Employee Director or Consultant bonuses,
and, if so paid, the amount thereof and the manner of such payment; or |
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(f) |
give any Participant any rights whatsoever with respect to an Award except as specifically provided in the Plan and the Award Agreement. |
13.2. Adoption
of the Plan. The adoption of the Plan shall not be deemed to give any Employee, Non-Employee
Director or Consultant or any other individual any right to be selected as a Participant or to be granted an Award, or, having been so
selected, to be selected to receive a future Award.
13.3. Vesting.
Notwithstanding any other provision of the Plan, a Participant’s right or entitlement to exercise or otherwise vest in any Award
not exercisable or vested at the time of grant shall only result from continued services as a Non-Employee Director or Consultant or continued
employment, as the case may be, with the Company or any Affiliate, and/or satisfaction of any other performance goals or other conditions
or restrictions applicable, by its terms, to such Award, except, in each such case, as the Committee may, in its discretion, but subject
to the terms of the Plan, expressly determine otherwise.
13.4. No
Effects on Benefits. Payments and other compensation received by a Participant under an Award are not part of such Participant’s
normal or expected compensation or salary for any purpose, including calculating termination, indemnity, severance, resignation, redundancy,
end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments under any laws, plans, contracts,
arrangements or otherwise. No claim or entitlement to compensation or damages arises from the termination of the Plan or diminution
in value of any Award or Shares purchased or otherwise received under the Plan.
13.5. One
or More Types of Awards. A particular type of Award may be granted to a Participant either alone or in addition to other
Awards under the Plan.
ARTICLE XIV.
CHANGE OF CONTROL
14.1. Treatment
of Outstanding Awards.
(a) In the
event of a Change of Control (except as otherwise may be provided in the applicable Award Agreement), the parties to such Change of Control
may agree that each Award be honored or assumed by the successor entity, or equivalent rights substituted therefor with new Awards of
the successor entity or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share
exercise prices, as such parties shall agree. References to the Committee in this Section 14 are to the Committee as constituted prior
to the Change of Control.
(b) Notwithstanding
any other provisions of the Plan to the contrary, in the event that the parties to such Change of Control do not provide for the honoring,
assumption or substitution of Awards (as described in Section 14.1(a) above), upon the effective time of the Change of Control transaction,
the Plan and all Awards will terminate. In the event of such termination (except as otherwise may be provided in the applicable Award
Agreement), all Options and Stock Appreciation Rights with time-based vesting shall become fully exercisable as of the effective time
of the Change of Control transaction, all other Awards with time-based vesting, conditions or restrictions shall become fully vested and
nonforfeitable as of the effective time of the Change of Control transaction, and all Awards with conditions and restrictions relating
to the attainment of performance goals shall be deemed to vest and become nonforfeitable as of the effective time of the Change of Control
transaction assuming the higher of achievement of all relevant performance goals at the “target” level (prorated based upon
the length of time within the performance period that elapsed prior to the Change of Control transaction) or (b) actual achievement as
of the date of such Change of Control transaction]. In addition, in the event of such termination, (i) the Committee shall have the option,
in its sole discretion, to make or provide for a payment, in cash or in kind, to Participants holding Options and Stock Appreciation Rights
equal to the difference between the per share consideration and the exercise price of the Options or Stock Appreciation Rights or (ii)
each grantee will be permitted, within a specified period of time prior to the Change of Control transaction, to exercise all outstanding
Options and Stock Appreciation Rights, to the extent then exercisable. The Committee shall also have the option (in its sole discretion)
to make or provide for a payment, in cash or in kind, to holders of other Awards in an amount equal to the consideration paid in the Change
of Control transaction multiplied by the number of vested shares subject to the award.
(c) For the
purposes of this Section 14, an Award shall be considered honored, assumed or substituted for if, following the Change of Control, the
Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change of Control, the consideration
(whether stock, cash, or other securities or property) received in the Change of Control transaction by holders of Shares for each Share
held on the effective date of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen
by the holders of a majority of the outstanding Shares); provided, however,
that if such consideration received in such transaction is not solely common stock of the successor entity or parent thereof, the Committee
may, with the consent of the successor entity or parent thereof, if applicable, provide for the consideration to be received upon the
exercise or payment of an Award, for each Share subject to such Award, to be solely common stock of the successor entity or parent thereof
equal in fair market value, as determined by the Committee, to the per share consideration received by holders of Shares in such transaction.
Notwithstanding anything in this Section 14 to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or
more performance goals will not be considered honor, assumed or substituted for if the Company or the successor entity or parent thereof
modifies any of such performance goals without the Participant’s consent; provided,
however, a modification to such performance goals only to reflect any successor corporation’s
post-Change of Control corporate structure will not be deemed to invalidate an otherwise valid honoring, assumption or substitution.
14.2. No
Implied Rights; Other Limitations. No Participant shall have any right to prevent the consummation of any of the acts described
in Section 4.3 or this Section 14 affecting the number of Shares available to, or other entitlement of, such Participant under the Plan
or such Participant’s Award. Any actions or determinations of the Committee under this Section 14 need not be uniform as to
all outstanding Awards, nor treat all Participants identically.
ARTICLE XV.
AMENDMENT, MODIFICATION,
AND TERMINATION
15.1. Amendment
and Termination of the Plan. The Board may, at any time and with or without prior notice, amend, alter, suspend or terminate
the Plan, retroactively or otherwise, but no such amendment, alteration, suspension or termination of the Plan shall be made which would
materially impair the previously accrued rights of any Participant with respect to a previously granted Award without such Participant’s
consent, except any such amendment made to comply with applicable law, tax rules, stock exchange rules or accounting rules. In addition,
no such amendment shall be made without the approval of the Company’s shareholders to the extent such approval is required by any
applicable law, tax rules, stock exchange rules or accounting rules (including as necessary to comply with any rules or requirements of
any securities exchange or inter-dealer quotation system on which the Shares may be listed or quoted).
15.2. Amendment
of Awards. Subject to the immediately following sentence, the Committee may unilaterally amend or alter the terms of any
Award theretofore granted, including any Award Agreement, retroactively or otherwise, but no such amendment shall be inconsistent with
the terms and conditions of the Plan or materially impair the previously accrued rights of the Participant to whom such Award was granted
with respect to such Award without his or her consent, except such an amendment made to cause the Plan or such Award to comply with applicable
law, tax rules, stock exchange rules or accounting rules. Except as provided in Section 4.3, without prior approval of the Company’s
shareholders, in no event may the Committee exercise its discretion to reduce the exercise price of outstanding Options or Stock Appreciation
Rights or effect repricing through cancellation and re-grants or cancellation of Stock Options or Stock Appreciation Rights in exchange
for cash or other Awards.
ARTICLE XVI.
TAX WITHHOLDING AND OTHER
TAX MATTERS
16.1. Tax
Withholding. The Company and/or any Affiliate are authorized to withhold from any Award granted or payment due under the
Plan the amount of all taxes due in respect of such Award or payment and take any such other action as may be necessary or appropriate,
as determined by the Committee, to satisfy all obligations for the payment of such taxes. No later than the date as of which an amount
first becomes includible in the gross income or wages of a Participant for tax purposes with respect to any Award, such Participant shall
pay to the Company, or make arrangements satisfactory to the Committee regarding the payment of, any taxes or social security (or similar)
contributions of any kind required by law to be withheld with respect to such amount. The obligations of the Company under the Plan
shall be conditional on such payment or satisfactory arrangements (as determined by the Committee in its discretion), and the Company
and the Subsidiaries and Affiliates shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise
due to such Participant, whether or not under the Plan.
16.2. Withholding
or Tendering Shares. Without limiting the generality of Section 16.1, subject to compliance with Applicable Law, the Committee
may in its discretion permit a Participant to satisfy or arrange to satisfy, in whole or in part, the tax obligations incident to an Award
by: (a) electing to have the Company withhold Shares or other property otherwise deliverable to such Participant pursuant to his
or her Award (provided, however, that the
amount of any Shares so withheld shall not exceed the amount necessary to satisfy required withholding obligations using the minimum statutory
withholding rates for tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering
to the Company Shares owned by such Participant (or by such Participant and his or her spouse jointly) and purchased or held for the requisite
period of time as may be required to avoid the Company’s or the Affiliates’ incurring an adverse accounting charge, based,
in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee. All such elections shall
be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee,
in its sole discretion, deems appropriate. The Committee may establish such procedures as it deems appropriate, including making
irrevocable elections, for settlement of withholding obligations with Shares or otherwise.
16.3. Restrictions.
The satisfaction of tax obligations pursuant to this Article XVI shall be subject to such restrictions as the Committee may impose, including
any restrictions required by Applicable Law or the rules and regulations of the SEC, and shall be construed consistent with an intent
to comply with any such Applicable Laws.
16.4. No
Guarantee of Favorable Tax Treatment. The Company does not warrant that any Award under the Plan will qualify for favorable
tax treatment under any provision of any applicable law. The Company shall not be liable to any Participant for any tax, interest,
or penalties the Participant might owe as a result of the grant, holding, vesting, exercise, or payment of any Award under the Plan.
ARTICLE XVII.
LIMITS OF LIABILITY;
INDEMNIFICATION
17.1. Limits of
Liability.
(a) Any liability of the Company
or an Affiliate to any Participant with respect to any Award shall be based solely upon contractual obligations created by the Plan and
the Award Agreement.
(b) None of the Company, any
Affiliate, any member of the Board or the Committee or any other person participating in any determination of any question under the Plan,
or in the interpretation, administration or application of the Plan, shall have any liability, in the absence of bad faith, to any party
for any action taken or not taken in connection with the Plan, except as may expressly be provided by statute.
(c) Each member of the Committee,
while serving as such, shall be considered to be acting in his or her capacity as a director of the Company. Members of the Board
of Directors and members of the Committee acting under the Plan shall be fully protected in relying in good faith upon the advice of counsel
and shall incur no liability except for gross negligence or willful misconduct in the performance of their duties.
(d) The Company shall not
be liable to a Participant or any other person as to: (i) the non-issuance of Shares as to which the Company has been unable to
obtain from any regulatory body having relevant jurisdiction the authority deemed by the Committee or the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, and (ii) any tax consequence expected, but not realized, by any Participant
or other person due to the receipt, exercise or settlement of any Option or other Award.
17.2. Indemnification.
Subject to the requirements of applicable law, each individual who is or shall have been a member of the Committee or of the Board,
or an officer of the Company to whom authority was delegated in accordance with Article III, shall be indemnified and held harmless by
the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection
with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved
by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement
thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such
loss, cost, liability, or expense is a result of the individual’s own willful misconduct or except as provided by statute.
The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individual may
be entitled under the Company’s Articles of Association, as a matter of law, or otherwise, or any power that the Company may have
to indemnify or hold harmless such individual.
ARTICLE XVIII.
MISCELLANEOUS
18.1. Drafting
Context. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine;
the plural shall include the singular and the singu-lar shall include the plural. The words “Article,” “Section,”
and “paragraph” herein shall refer to provisions of the Plan, unless expressly indicated otherwise. The words “include,”
“includes,” and “including” herein shall be deemed to be followed by “without limitation” whether
or not they are in fact followed by such words or words of similar import, unless the context otherwise requires. The headings and captions
appearing herein are inserted only as a matter of convenience. They do not define, limit, construe, or describe the scope or intent of
the provisions of the Plan.
18.2. Forfeiture/Clawback.
The Committee may, in its discretion, specify in an Award Agreement or a policy that will be deemed incorporated into an Award Agreement
by reference (regardless of whether such policy is established before or after the date of such Award Agreement), that a Participant’s
rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture, rescission or recoupment
upon the occurrence of certain specified events, in addition to any otherwise applicable vesting, restrictions or performance conditions
of an Award. Such events may include, but shall not be limited to, Termination with or without cause, breach of noncompetition, confidentiality,
or other restrictive covenants that may apply to the Participant, or restatement of the Company’s financial statements to reflect
adverse results from those previously released financial statements, as a consequence of errors, omissions, fraud, or misconduct.
18.3. Severability.
In the event any provision of the Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included.
18.4. Exercise
and Payment of Awards. An Award shall be deemed exercised or claimed when the Secretary of the Company or any other Company
official or other person designated by the Committee for such purpose receives appropriate written notice from a Participant, in form
acceptable to the Committee, together with payment of the applicable Option Price, Grant Price or other purchase price, if any, and compliance
with Article XVI, in accordance with the Plan and such Participant’s Award Agreement.
18.5. Deferrals.
Subject to applicable law, the Committee may from time to time establish procedures pursuant to which a Participant may defer on an elective
or mandatory basis receipt of all or a portion of the cash or Shares subject to an Award on such terms and conditions as the Committee
shall determine, including those of any deferred compensation plan of the Company or any Affiliate specified by the Committee for such
purpose.
18.6. Loans.
The Company may, in the discretion of the Committee, extend one or more loans to Participants in connection with the exercise or receipt
of an Award granted to any such Participant; provided, however,
that the Company shall not extend loans to any Participant if prohibited by Applicable Law or the rules of any stock exchange or quotation
system on which the Company’s securities are listed. The terms and conditions of any such loan shall be established by the
Committee.
18.7. No
Effect on Other Plans. Neither the adoption of the Plan nor anything contained herein shall affect any other compensation
or incentive plans or arrangements of the Company or any Affiliate, or prevent or limit the right of the Company or any Affiliate to establish
any other forms of incentives or compensation for their directors, officers, eligible employees or consultants or grant or assume options
or other rights otherwise than under the Plan.
18.8. Section
16 of Exchange Act. The provisions and operation of the Plan are intended to ensure that no transaction under the Plan is
subject to (and not exempt from) the short-swing profit recovery rules of Section 16(b) of the Exchange Act. Unless otherwise stated
in the Award Agreement, notwithstanding any other provision of the Plan, any Award granted to an Insider shall be subject to any additional
limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including Rule 16b-3) that are requirements
for the application of such exemptive rule, and the Plan and the Award Agreement shall be deemed amended to the extent necessary to conform
to such limitations.
18.9. Requirements
of Law; Limitations on Awards.
(a) The granting of Awards and
the issuance of Shares under the Plan shall be subject to all Applicable Laws and to such approvals by any governmental agencies or national
securities exchanges as may be required.
(b) If at any time the
Committee shall determine, in its discretion, that the listing, registration and/or qualification of Shares upon any securities exchange
or under any law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection
with, the sale or purchase of Shares hereunder, the Company shall have no obligation to allow the grant, exercise or payment of any Award,
or to issue or deliver evidence of title for Shares issued under the Plan, in whole or in part, unless and until such listing, registration,
qualification, consent and/or approval shall have been effected or obtained, or otherwise provided for, free of any conditions not acceptable
to the Committee.
(c) If at any time counsel
to the Company shall be of the opinion that any sale or delivery of Shares pursuant to an Award is or may be in the circumstances unlawful
or result in the imposition of excise taxes on the Company or any Affiliate under the statutes, rules or regulations of any applicable
jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain
any qualification or registration under the Securities Act, or otherwise with respect to Shares or Awards and the right to exercise or
payment of any Option or Award shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will
not result in the imposition of excise taxes on the Company or any Affiliate.
(d) Upon termination of any
period of suspension under this Section 18.9, any Award affected by such suspension which shall not then have expired or terminated shall
be reinstated as to all Shares available before such suspension and as to the Shares which would otherwise have become available during
the period of such suspension, but no suspension shall extend the term of any Award.
(e) The Committee may require
each person receiving Shares in connection with any Award under the Plan to represent and agree with the Company in writing that such
person is acquiring such Shares for investment without a view to the distribution thereof, and/or provide such other representations and
agreements as the Committee may prescribe. The Committee, in its absolute discretion, may impose such restrictions on the ownership
and transferability of the Shares purchasable or otherwise receivable by any person under any Award as it deems appropriate. Any
such restrictions shall be set forth in the applicable Award Agreement, and the certificates evidencing such shares may include any legend
that the Committee deems appropriate to reflect any such restrictions.
(f) An Award and any Shares
received upon the exercise or payment of an Award shall be subject to such other transfer and/or ownership restrictions and/or legending
requirements under the Company's Articles of Association and/or as the Committee may establish in its discretion and may be referred to
on the certificates evidencing such Shares, including restrictions under applicable securities laws, under the requirements of any stock
exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable
to such Shares.
18.10. Participants
Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through
any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms
and conditions of the Plan and any action taken under the Plan by the Board, the Committee or the Company, in any case in accordance with
the terms and conditions of the Plan.
18.11. Governing
Law. The Plan, all determinations made and actions taken pursuant hereto and, except as provided below or in an applicable subplan,
each Award Agreement to a Participant shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction.
Unless otherwise provided in the Award Agreement, Participants are deemed to submit to the exclusive jurisdiction and venue of the federal
or state courts of the State of Delaware, to resolve any and all issues that may arise out of or relate to the Plan or any related Award
Agreement.
18.12. Plan
Unfunded. The Plan shall be unfunded. The Company shall not be required to establish any special or separate fund or
to make any other segregation of assets to assure the issuance of Shares or the payment of cash upon exercise or payment of any Award.
Proceeds from the sale of Shares pursuant to Options or other Awards granted under the Plan shall constitute general funds of the Company.
18.13. Administration
Costs. The Company shall bear all costs and expenses incurred in administering the Plan, including expenses of issuing Shares
pursuant to any Options or other Awards granted hereunder.
18.14. Uncertificated
Shares. To the extent that the Plan provides for issuance of certificates to reflect the transfer of Shares, the transfer
of such Shares may nevertheless be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of
any stock exchange.
18.15. No Fractional
Shares. An Option or other Award shall not be exercisable with respect to a fractional Share or the lesser of fifty (50)
shares or the full number of Shares then subject to the Option or other Award. No fractional Shares shall be issued upon the exercise
or payment of an Option or other Award and any such fractions shall be rounded to the nearest whole number.
18.16. Data Protection.
By participating in the Plan, each Participant consents to the collection, processing, transmission and storage by the Company or any
Affiliate, in any form whatsoever, of any data of a professional or personal nature which is necessary for the purposes of administering
the Plan. The Company may share such information with any Affiliate, any trustee, its registrars, brokers, other third-party administrator
or any person who obtains control of the Company or any Affiliate or any division respectively thereof.
18.17. Right
of Offset. The Company and any Affiliate shall have the right to offset against the obligations to make payment or issue
any Shares to any Participant under the Plan, any outstanding amounts (including travel and entertainment advance balances, loans, tax
withholding amounts paid by the employer or amounts repayable to the Company or any Affiliate pursuant to tax equalization, housing, automobile
or other employee programs) such Participant then owes to the Company or any Affiliate and any amounts the Committee otherwise deems appropriate
pursuant to any tax equalization policy or agreement.
18.18. Participants.
Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws or practices of countries in which the Company
and/or any Affiliate operates or has Employees, Non-Employee Directors or Consultants, the Committee, in its sole discretion, shall have
the power and authority to:
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(a) |
determine which Affiliates shall be covered by the Plan; |
| |
(b) |
determine which Employees, Non-Employee Directors and/or Consultants are eligible to participate in the Plan; |
| |
(c) |
grant Awards (including substitutes for Awards), and modify the terms and conditions of any Awards, on such terms and conditions
as the Committee determines necessary or appropriate to permit participation in the Plan by individuals otherwise eligible to so participate,
or otherwise to comply with applicable laws or conform to applicable requirements or practices of the applicable jurisdictions; |
| |
(d) |
establish Subplans and adopt or modify exercise procedures and other terms and procedures, to the extent such actions may be necessary
or advisable. Any subplans and modifications to Plan terms and procedures established under this Section 18.18 by the Committee
shall be attached to the Plan as appendices; and |
| |
(e) |
take any action, before or after an Award is made, that the Committee, in its discretion, deems advisable to obtain approval or comply
with any necessary local government regulatory exemptions or approvals. |
Notwithstanding the above, the Committee may not take any actions hereunder,
and no Awards shall be granted, that would violate any Applicable Law.
18.19. Rules
Particular to Specific Countries. Notwithstanding anything herein to the contrary, to the extent determined by the Committee, the
terms and conditions of the Plan shall be adjusted with respect to a particular country or other jurisdiction by means of a Subplan to
the Plan in the form of an appendix, and to the extent that the terms and conditions set forth in the Subplan conflict with any provisions
of the Plan, the provisions of the Subplan shall govern. Terms and conditions set forth in the Subplan shall apply only to Awards granted
to Participants under the jurisdiction of the specific country that is subject of the Subplan and shall not apply to any other Awards.
* * *
