SUMMARY OF PROPOSED TERMS SERIES A PREFERRED SHARES Reporty Homeland Security Ltd. January 2015 We are happy to confirm our interest, subject to all terms and conditions herein, to explore the possibility of an investment in Reporty Homeland Security Ltd. This letter summarizes the principal terms of a proposed investment for the purchase of Preferred A Shares of the Company. Except as specifically provided herein, this letter is not intended to be a legally binding agreement but is a statement of intent. It is presented solely for the purpose of discussion. Company Reporty Homeland Security Ltd., an Israeli company (the "Company"). Founders Amir Elichai, Alexander Dizengoff, Yoni Yitzon & Lital Leshem Investor An entity under the control of Mr. Ehud Barak (the "Investor"). Structure of The Investor shall invest in the Company up to an aggregate amount of US$ Financing 1,500,000 (the "Investment Amount"), against issuance by the Company of a total amount of 12 184 Preferred Shares for the entire Investment Amount (assuming all Investment Amount is delivered) at a price per share of frending-an-teprietted-eap-tableUSS35.5583] ("PPS") (representing a pre-money valuation of US$ 4,500,000, on a Fully Diluted Basis (as defined below)) so that immediately following the Additional Closing, Investor will hold not less than 25% of the Company's share capital, on a Fully Diluted Basis. The Investment Amount shall be provided to Company in two installments as follows: (i) an amount of US$ {1,000,000} out of the Investment Amount will be provided at the Closing upon which, an amount of 28 123 Preferred Shares shall be allocated to the Investor; and (ii) Subject to the following, the remaining amount of US$ f500,0003 (ASeeend Installinem-Paymenctyout of the Investment Amount will be provided within months as of the Closing, conditioned upon achievement by the Company at or prior to such time of the-certain milestone(s) that shall be defined