SUMMARY OF PROPOSED TERMS SERIES A PREFERRED SHARES Reporty Homeland Security Ltd. December , 2014 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 Preferred A Shares. 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 Financing Investor shall invest in the Company up to an aggregate amount of US$ 1,500,000 (the "Investment Amount"), against issuance by the Company of Preferred Shares at the Closing (as such terms are defined below) for the entire Investment Amount at a price per share of [ 1 ("PPS") (representing a pre-money valuation of US$ [3,338,710], on a Fully Diluted Basis (as defined below)) so that immediately following the Closing, Investor will hold not less than [31.0%] of the Company's share capital, on a Fully Diluted Basis. The Investment Amount shall be provided to Company in two subsequent equal installments as follows: (i) an amount of US$ 750,000 out of the Investment Amount will be provided at the Closing; and (ii) Subject to the following, the remaining amount of US$ 750,000 out of the Investment Amount will be provided within _ months as of the Closing, conditioned upon achievement by the Company of the milestone(s) set forth under Annex I of this letter at or prior to such time, to Investor's satisfactions. Fully Diluted Basis In this letter, "Fully Diluted Basis" includes, without limitation, all issued and outstanding share capital of the Company, all securities iss