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Following discussions with proxy advisors, the compensation committee and board of directors of Caesarstone Ltd. (“Caesarstone” or the “Company”), have determined to amend the proposed compensation policy attached as Exhibit A to the proxy statement for the annual general meeting of the shareholders of Caesarstone scheduled to be held on December 6, 2016. Such proxy statement was furnished to the Securities and Exchange Commission on Form 6-K on November 1, 2016.

Sections 10.3 and 15.2 of the proposed compensation policy are amended to add a cap on the relocation bonus and severance pay that may be granted by the Company to executive officers, as set forth below. The words proposed to be added are highlighted in boldface font and underlined, and the words proposed to be deleted are indicated by a strikethrough.

The proposed amendment:

10.3          Relocation Bonus. In the event of relocation of an Executive Officer to another geography, such Executive Officer may receive other similar, comparable or customary benefits as applicable in the relevant jurisdiction in which he or she is employed. Such benefits shall include reimbursement for out of pocket one time payments and other ongoing expenses, such as real estate broker fees, moving costs, home leave visit, etc. The Relocation Bonus will not exceed six (6) monthly base salaries of the Executive Officer.

15.2          Caesarstone shall provide additional retirement and terminations benefits and payments as may be required by applicable law (e.g., mandatory severance pay under Israeli labor laws), and may provide additional retirement and terminations benefits and payments which will be comparable to customary market practices, provided that such additional retirement and termination benefits together with the termination  benefits provided under Section 14.1 and 14.2 shall not exceed 24 monthly base salaries of the Executive Officer and/or found to be appropriate under the circumstances relevant to the termination of the Executive Officer.

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