Document:

Exhibit 10.11

WHITESMOKE, INC.

2011 STOCK INCENTIVE PLAN

	
1. 

	
Establishment, Purpose and Types of Awards

WHITESMOKE, INC., a Delaware corporation (the “Company”), hereby establishes the WHITESMOKE, INC. 2011 STOCK INCENTIVE PLAN (the “Plan”).  The purpose of the Plan is to promote the long-term growth and profitability of the Company by (i) providing key people with incentives to improve stockholder value and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-available personnel.

The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory stock options), stock appreciation rights, restricted or unrestricted stock awards, restricted stock units, performance awards, other stock-based awards, or any combination of the foregoing.

	
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Definitions

Under this Plan, except where the context otherwise indicates, the following definitions apply:

(a)           “Administrator” means the Board or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof.

(b)           “Affiliate” means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships).  For this purpose, “control” shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or the power to direct the management and policies of the entity, by contract or otherwise.

(c)           “Award” means any stock option, stock appreciation right, stock award, restricted stock unit award, performance award, or other stock-based award.

(d)           “Board” means the Board of Directors of the Company.

(e)           “Change in Control” means:  a (i) Change in Ownership of the Company, (ii) Change in Effective Control of the Company, or (iii) Change in the Ownership of Assets of the Company, as described herein and construed in accordance with Code section 409A.

(i)           A Change in Ownership of the Company shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire, ownership of the capital stock of the Company that, together with the stock held by such Person or Group, constitutes more than 50% of the total fair market value or total voting power of the capital stock of the Company.  However, if any one Person is, or Persons Acting as a Group are, considered to own more than 50% of the total fair market value or total voting power of the capital stock of the Company, the acquisition of additional stock by the same Person or Persons Acting as a Group is not considered to cause a Change in Ownership of the Company or to cause a Change in Effective Control of the Company (as described below).  An increase in the percentage of capital stock owned by any one Person, or Persons Acting as a Group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock.

(ii)           A Change in Effective Control of the Company shall occur on the date a majority of members of the Company’s Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board before the date of the appointment or election.

  

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(iii)           A Change in the Ownership of Assets of the Company shall occur on the date that any one Person acquires, or Persons Acting as a Group acquire (or has or have acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons), assets from the Company that have a total gross fair market value of more than 50% of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

The following rules of construction apply in interpreting the definition of Change in Control:

(A)           A Person means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the capital stock of the Company in a registered public offering.

(B)           Persons will be considered to be Persons Acting as a Group (or Group) if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the corporation.  If a Person owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock, or similar transaction, such shareholder is considered to be acting as a Group with other shareholders only with respect to the ownership in that corporation before the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.  Persons will not be considered to be acting as a Group solely because they purchase assets of the same corporation at the same time or purchase or own stock of the same corporation at the same time, or as a result of the same public offering.

(C)           For purposes of this Section 2(e), fair market value shall be determined by the Administrator.

(D)           A Change in Control shall not include a transfer to a related person as described in Code section 409A or a public offering of capital stock of the Company.

(E)           For purposes of this Section 2(e), Code section 318(a) applies to determine stock ownership.  Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the unvested option).  For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Treasury Regulation §1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option.

(f)           “Code” means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.

(g)           “Common Stock” means shares of common stock of the Company, par value of $0.01 per share.

(h)           “Fair Market Value” means, with respect to the Common Stock, as of any date:

(i)           if the principal market for the Common Stock (as determined by the Administrator if the Common Stock is listed or admitted to trading on more than one exchange or market) is a national securities exchange or an established securities market, the official closing price per share of Common Stock for the regular market session on that date on the principal exchange or market on which the Common Stock is then listed or admitted to trading or, if no sale is reported for that date, on the last preceding day on which a sale was reported;

  

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(ii)           if the principal market for the Common Stock is not a national securities exchange or an established securities market, the average of the highest bid and lowest asked prices for the Common Stock on that date as reported on a national quotation system or, if no prices are reported for that date, on the last preceding day on which prices were reported; or

(iii)           if the Common Stock is neither listed or admitted to trading on a national securities exchange or an established securities market, nor quoted by a national quotation system, the value determined by the Administrator in good faith.

With respect to property other than Common Stock, Fair Market Value means the value of the property determined by such methods or procedures to be established from time to time by the Board in accordance with Code section 409A.

(i)           “Grant Agreement” means a written document, including an electronic writing acceptable to the Administrator, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.

(j)           “Performance Measures” mean criteria established by the Administrator relating to any of the following, as it may apply to an individual, one or more business units, divisions or subsidiaries, or on a Company-wide basis, and in either absolute terms or relative to the performance of one or more comparable companies or an index covering multiple companies:

(i)           Earnings or Profitability Metrics: including, but not limited to, earnings/loss (gross, operating, net, or adjusted); earnings/loss before interest and taxes (“EBIT”); earnings/loss before interest, taxes, depreciation and amortization (“EBITDA”); profit margins; expense levels or ratios; in each case adjusted to eliminate the effect of any one or more of the following:  interest expense, asset impairments, early extinguishment of debt, stock-based compensation expense, changes in generally accepted accounting principles or critical accounting policies, or other extraordinary or non-recurring items, as specified by the plan administrator when establishing the performance goals;

(ii)           Return Metrics: including, but not limited to, return on investment, assets, equity or capital (total or invested);

(iii)           Cash Flow Metrics: including, but not limited to, operating cash flow; cash flow sufficient to achieve financial ratios or a specified cash balance; free cash flow; cash flow return on capital; net cash provided by operating activities; cash flow per share; working capital;

(iv)           Liquidity Metrics: including, but not limited to, capital raising; debt reduction; extension of maturity dates of outstanding debt; debt leverage (debt to capital, net debt-to-capital, debt-to-EBITDA or other liquidity ratios) or access to capital; debt ratings; total or net debt; other similar measures approved by the plan administrator;

(v)           Stock Price and Equity Metrics: including, but not limited to, return on stockholders’ equity; total stockholder return; revenue (gross, operating or net); revenues from sales; revenues from search model; revenue growth; stock price; stock price appreciation; market capitalization; earnings/loss per share (basic or diluted) (before or after taxes); price-to-earnings ratio;

(vi)           Strategic Metrics: including, but not limited to, number of users, site traffic, conversion ratios, product research and development; regulatory filings or approvals; patent application or issuance; manufacturing or process development; sales or net sales; geographic coverage; market share; market penetration; inventory control; growth in assets; key hires; business expansion; acquisitions, divestitures, affiliate agreements, collaborations, licensing or joint ventures; financing; resolution of significant litigation; legal compliance or risk reduction.

  

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Administration

(a)           Administration of the Plan.  The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board from time to time.  To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than Stock Awards) to other officers and employees of the Company and its Affiliates, and, to the extent of such authorization, such officer or officers shall be the Administrator.

(b)           Powers of the Administrator.  The Administrator shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for granting Awards.

The Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to:  (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards (provided, however, that, except as provided in Section 6 or 7(d) of the Plan, any modification that would materially adversely affect any outstanding Award shall not be made without the consent of the holder and no such modification, amendment or substitution that results in repricing the Award, within the meaning of the Nasdaq Marketplace Rule 5635(c) and IM-5635-1, or any successor provision, shall be made without prior stockholder approval); (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantee’s employment or other relationship with the Company; provided, however, that no such waiver or acceleration of lapse restrictions shall be made with respect to a performance-based stock award granted to an executive officer of the Company if such waiver or acceleration is inconsistent with Code section 162(m); (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose, including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and prescribe, amend and rescind rules and regulations relating to such sub-plans.

The Administrator shall have full power and authority, in its sole and absolute discretion, to administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect.

(c)           Non-Uniform Determinations.  The Administrator’s determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated.

(d)           Limited Liability.  To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder.

  

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(e)           Indemnification.  To the maximum extent permitted by law and by the Company’s charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan.

(f)           Effect of Administrator’s Decision.  All actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrator’s sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the Company, its stockholders, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest.

	
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Shares Available for the Plan; Maximum Awards

(a)           Subject to adjustments as provided in Section 7(d) of the Plan, until December 31, 2012, the shares of Common Stock that may be issued with respect to Awards granted under the Plan shall not exceed three percent (3%) of the total shares of Common Stock outstanding immediately following the Company's initial public offering.  Thereafter, the shares of Common Stock that may be issued with respect to Awards granted under the Plan in each calendar year during any part of which the Plan is in effect shall not exceed three percent (3%) of the total shares of Common Stock outstanding on the first day of such year; provided, however, that no more than an aggregate of the lesser of (i) three percent (3%) of the total shares of Common Stock outstanding as of the closing of the Company's initial public offering and (ii) 500,000 shares of Common Stock may be issued pursuant to incentive stock options intended to qualify under Code section 422.  The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan.  If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan; provided, however, that any such shares that are surrendered to or repurchased or withheld by the Company in connection with any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Code section 422.

(b)           Subject to adjustments as provided in Section 7(d) of the Plan, the maximum number of shares of Common Stock subject to Awards of any combination that may be granted during any one fiscal year of the Company to any one individual under this Plan shall be limited to 500,000 shares; provided, however, that such maximum number shall be 1,000,000 shares with respect to any individual during the first fiscal year that the individual is employed with the Company or an Affiliate.  Such per-individual limit shall not be adjusted to effect a restoration of shares of Common Stock with respect to which the related Award is terminated, surrendered or canceled.

	
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Participation

Participation in the Plan shall be open to all employees, officers, and directors of, and other individuals providing bona fide services to or for, the Company, or of any Affiliate of the Company, as may be selected by the Administrator from time to time. The Administrator may also grant Awards to individuals in connection with hiring, retention or otherwise, prior to the date the individual first performs services for the Company or an Affiliate, provided that such Awards shall not become vested or exercisable, and no shares shall be issued to such individual, prior to the date the individual first commences performance of such services.

	
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Awards

The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan.  Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding Awards.  All Awards are subject to the terms and conditions provided in the Grant Agreement.

  

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(a)           Stock Options.  The Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current or hereafter existing “parent corporation” or “subsidiary corporation,” as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible to receive incentive stock options under the provisions of Code section 422.  Options must have an exercise price at least equal to Fair Market Value as of the date of grant and may not have a term in excess of ten years’ duration.  No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option.

(b)           Stock Appreciation Rights.  The Administrator may from time to time grant to eligible participants Awards of Stock Appreciation Rights (“SAR”).  An SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which is exercised.  The base price per share specified in the Grant Agreement shall not be less than the lower of the Fair Market Value on the grant date or the exercise price of any tandem stock option Award to which the SAR is related.  No SAR shall have a term longer than ten years’ duration.  Payment by the Company of the amount receivable upon any exercise of an SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator.  If upon settlement of the exercise of an SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date.  No fractional shares shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated.

(c)           Stock Awards.

(i)           The Administrator may from time to time grant stock awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine.  A stock award may be denominated in Common Stock or other securities, stock-equivalent units or restricted stock units, securities or debentures convertible into Common Stock, or any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Administrator.

  

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(ii)           The Administrator may grant stock awards in a manner constituting “qualified performance-based compensation” within the meaning of Code section 162(m).  The grant of, or lapse of restrictions with respect to, such performance-based stock awards shall be based upon one or more Performance Measures and objective performance targets to be attained relative to those Performance Measures, all as determined by the Administrator.  Performance targets may include minimum, maximum, intermediate and target levels of performance, with the size of the performance-based stock award or the lapse of restrictions with respect thereto based on the level attained.  A performance target may be stated as an absolute value or as a value determined relative to prior performance, one or more indices, budget, one or more peer group companies, any other standard selected by the Administrator, or any combination thereof.  The Administrator shall be authorized to make adjustments in the method of calculating attainment of Performance Measures and performance targets in recognition of:  (A) extraordinary or non-recurring items; (B) changes in tax laws; (C) changes in generally accepted accounting principles or changes in accounting policies; (D) charges related to restructured or discontinued operations; (E) restatement of prior period financial results; and (F) any other unusual, non-recurring gain or loss that is separately identified and quantified in the Company’s financial statements; provided that the Administrator’s decision as to whether such adjustments will be made with respect to any Covered Employee, within the meaning of Code section 162(m), is determined when the performance targets are established for the applicable performance period.  Notwithstanding the foregoing, the Administrator may, at its sole discretion, modify the performance results upon which Awards are based under the Plan to offset any unintended results arising from events not anticipated when the Performance Measures and performance targets were established; provided, that such modifications may be made with respect to an Award granted to any Covered Employee, within the meaning of Code section 162(m), only to the extent permitted by Code section 162(m) if the Award was intended to constitute “qualified performance-based compensation” within the meaning of Code section 162(m).  Notwithstanding anything in the Plan to the contrary, the Administrator is not authorized to waive or accelerate the lapse of restrictions on a performance-based stock award granted to any Covered Employee, within the meaning of Code section 162(m) except upon death, disability or a change of ownership or control of the Company.  In the event that a Change in Control occurs after a performance-based stock award has been granted but before completion of the applicable performance period, a pro rata portion of such Award shall become payable (or a pro rata portion of the lapse restrictions shall lapse, as applicable) as of the date of the Change in Control to the extent otherwise earned on the basis of achievement of the pro rata portion of the Performance Measures and performance targets relating to the portion of the performance period completed as of the date of the Change in Control.

	
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Miscellaneous

(a)           Withholding of Taxes.  Grantees and holders of Awards shall pay to the Company or its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability.  The Company or its Affiliate may, to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award.  In the event that payment to the Company or its Affiliate of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation.

(b)           Loans.  To the extent otherwise permitted by law, the Company or its Affiliate may make or guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding tax obligations.

(c)           Transferability.  Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise than by will or the laws of descent and distribution.  Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal disability, by the grantee’s guardian or legal representative.

(d)           Adjustments for Corporate Transactions and Other Events.

 

	
  

	
(i)

	
Stock Dividend, Stock Split and Reverse Stock Split.  In the event of a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, (A) the maximum number of shares of such Common Stock as to which Awards may be granted under this Plan and the maximum number of shares with respect to which Awards may be granted during any one fiscal year of the Company to any individual, as provided in Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event.  The Administrator may make adjustments, in its discretion, to address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split.

 

  

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(ii)

	
Non-Change in Control Transactions.  Except with respect to the transactions set forth in Section 7(d)(i), in the event of any change affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control of the Company, the Administrator, in its discretion and without the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the Plan, in the aggregate and with respect to any individual during any one fiscal year of the Company, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not limited to modifying the number, kind and price of securities subject to Awards.

 

	
  

	
(iii)

	
Change in Control Transactions.  In the event of any transaction resulting in a Change in Control of the Company, outstanding stock options and other Awards that are payable in or convertible into Common Stock under this Plan will terminate upon the effective time of such Change in Control unless provision is made in connection with the transaction for the continuation or assumption of such Awards by, or for the substitution of the equivalent awards, as determined in the sole discretion of the Administrator, of, the surviving or successor entity or a parent thereof.  In the event of such termination, the holders of stock options and other Awards under the Plan will be permitted, immediately before the Change in Control, to exercise or convert all portions of such stock options or other Awards under the Plan that are then exercisable or convertible or which become exercisable or convertible upon or prior to the effective time of the Change in Control.

 

	
  

	
(iv)

	
Unusual or Nonrecurring Events.  The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.

 

(e)           Substitution of Awards in Mergers and Acquisitions.  Awards may be granted under the Plan from time to time in substitution for awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate as the result of a merger or consolidation of the employing entity with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock of the employing entity.  The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to the provisions of the awards for which they are substituted.

(f)           Termination, Amendment and Modification of the Plan.  The Board may terminate, amend or modify the Plan or any portion thereof at any time.  Except as otherwise determined by the Board, termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

(g)           Non-Guarantee of Employment or Service.  Nothing in the Plan or in any Grant Agreement thereunder shall confer any right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individual’s interests under the Plan.

  

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(h)           Compliance with Securities Laws; Listing and Registration.  If at any time the Administrator determines that the delivery of Common Stock under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or Federal, state or foreign securities laws, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator determines that such delivery is lawful.  If at any time the Administrator determines that the delivery of Common Stock under the Plan is or may violate the rules of the national exchange on which the shares are then listed for trade, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator determines that such delivery would not violate such rules.  The Company shall have no obligation to effect any registration or qualification of the Common Stock under Federal, state or foreign laws.

The Company may require that a grantee, as a condition to exercise of an Award, and as a condition to the delivery of any share certificate, make such written representations (including representations to the effect that such person will not dispose of the Common Stock so acquired in violation of Federal, state or foreign securities laws) and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company to issue the Common Stock in compliance with applicable Federal, state or foreign securities laws.  The stock certificates for any shares of Common Stock issued pursuant to this Plan may bear a legend restricting transferability of the shares of Common Stock unless such shares are registered or an exemption from registration is available under the Securities Act of 1933, as amended, and applicable state or foreign securities laws.

(i)           No Trust or Fund Created.  Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a grantee or any other person.  To the extent that any grantee or other person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.

(j)           Governing Law.  The validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles.

(k)           409A Savings Clause.  The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, Code section 409A.  The Plan and all Awards granted under the Plan shall be administered, interpreted, and construed in a manner consistent with Code section 409A to the extent necessary to avoid the imposition of additional taxes under Code section 409A(a)(1)(B).  Should any provision of the Plan, any Award Agreement, or any other agreement or arrangement contemplated by the Plan be found not to comply with, or otherwise be exempt from, the provisions of Code section 409A, such provision shall be modified and given effect (retroactively if necessary), in the sole discretion of the Administrator, and without the consent of the holder of the Award, in such manner as the Administrator determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Code section 409A.  Notwithstanding anything in the Plan to the contrary, in no event shall the Administrator exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code section 409A unless, and solely to the extent that, such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-3(j)(4) or any successor provision.

  

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(l)           Participants Subject to Taxation Outside the United States.  With respect to participants who are believed by the Administrator to be subject to taxation in countries other than the United States, the Administrator may make grants on such terms and conditions, consistent with the Plan, as the Administrator deems appropriate to comply with the laws of the applicable countries, and the Administrator may create such procedures, addenda and subplans and make such modifications as may be necessary or advisable to comply with such laws.  The Board may amend the Plan in such manner as may be necessary to enable the Plan to achieve its stated purposes in any jurisdiction outside the United States in a tax-efficient manner and in compliance with local rules and regulations.  Furthermore, if any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Administrator, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Administrator, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such Award shall remain in full force and effect.

(m)           Effective Date; Termination Date.  The Plan is effective as of the date on which the Plan is adopted by the Board, subject to approval of the stockholders within twelve months before or after such date.  No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the stockholders.  Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.

	  	
PLAN APPROVAL

	  	  
	
Date Approved by the Board:

	   

 

	
Date Approved by the Stockholders:

	  

 

  

10Exhibit 10.18

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of the date set forth below, by and between  WhiteSmoke Inc., a Delaware Corporation, with offices at 501 Silverside Road, Wilmington, Delaware 19809 ("Parent"), WhiteSmoke Israel Ltd., a wholly owned subsidiary of Parent, private company organized under the Laws of the State of Israel, whose principal office is located at 11 Kehilat Saloniki Street, Tel-Aviv (the "Company", and together with Parent, the "Group") and Hilla Ovil-Brenner, (I.D. no. 32085375 whose address is 39/3 Shmuel Tamir Street Ramat Aviv, Tel Aviv, Israel (the: “Employee”), dated July 1, 2011.

WHEREAS, the Company desires to employ the Employee in the position of Chief Executive Officer of the Group(the: “Position”) and the Employee desires to enter into such employment, on the terms and conditions hereinafter set forth; and

WHEREAS, the Position is of significant policy-making authority for the Group and therefore the Employee shall constitute an executive officer of both Parent and the Company.

NOW, THEREFORE, in consideration of the respective agreements of the parties contained herein, the parties agree as follows:

	
1.

	
Employment

	
  

	
1.1

	
The terms of this Agreement shall be effective as of January 1, 2011 ("Effective Date").

	
  

	
1.2

	
The Employee served as a consultant to the Company until the Effective Date of this Agreement. Upon the Effective Date, the relationship between the parties shall change to an employer – employee relationship. The Employee hereby declares that she has received any and all amounts due to her under the provision of services by her to the Company as a consultant and that neither she, nor anyone on her behalf, shall have any claim whatsoever against the Company in connection with the period in which she served as a consultant to the Company.

	
  

	
1.3

	
The Employee shall report to the Board of Directors of the Company, and the Board of Directors of the Parent (the “Board”). The Employee shall perform the duties, undertake the responsibilities and exercise the authority as determined from time to time by the Board and as customarily performed, undertaken and exercised by persons situated in a similar capacity.

	
  

	
1.4

	
During the course of the Employee’s employment with the Company, the Employee shall honestly, diligently, skillfully and faithfully serve the Group. The Employee undertakes to devote best efforts and utilize all available qualifications and skills to promote the business and affairs of the Group, and further undertakes loyally and fully to comply with the directives, policies and orders of the Group. The Employee shall act at all times in a manner befitting the Employee’s position and status in the Group.

	
  

	
1.5

	
The Employee undertakes promptly to notify the Company regarding any matter or subject in respect of which the Employee has a personal interest and/or which might create a conflict of interest with the Employee’s position in the Group.

	
  

	
1.6

	
The Employee shall be employed on a full time basis, and will devote full time and attention to the business and affairs of the Group as may be required to discharge the responsibilities assigned to the Employee hereunder. During the term of this Agreement the Employee shall not engage in any other employment nor directly or indirectly engage in any other business activities in any capacity for any other person, firm or company whether or not for consideration, without the express prior written consent of the Company.

  

  

  

	
  

	
1.7

	
The Employee hereby makes the following representations and undertakings for the benefit of the Group:

	
  

	
1.7.1

	
There are no undertakings or agreements preventing the Employee from making the commitments described herein and performing Employee’s obligations pursuant to this Agreement.

	
  

	
1.7.2

	
To the best of the Employee’s knowledge, the Employee is not currently, nor will the Employee be deemed to be by virtue of entering into this Agreement, in breach of any of the Employee’s obligations towards any former employer, including, without limitation, any non-competition or confidentiality undertakings.

	
  

	
1.7.3

	
In carrying out the Employee’s duties under this Agreement, the Employee shall not make any representations or make any commitments on behalf of the Company, except as authorized to do so expressly and in advance.

	
  

	
1.7.4

	
The Employee acknowledges and agrees that the Company is entitled to conduct inspections within the offices of any member of the Group and on the computers of any member of the Group and other devices, including inspections of electronic mail transmissions, internet usage and inspections of their content. For the avoidance of any doubt, it is hereby clarified that findings of any such examinations shall be the Group's sole property.  The Employee acknowledges and agrees that any messages and data sent from, received by, or stored in or on the computers of any member of the Group and communications systems are the sole property of the Group, regardless of the form and/or content of these messages and data.  The Employee should not consider messages and data sent from, received by, or stored in or upon a computer of a member of the Group and communications systems to be private and should not send, receive, or store sensitive personal or private information using these systems.  The Employee is deemed to have consented to any reasonable use, transfer and disclosure of all messages and data contained or sent via the computer and communications systems of any member of the Group, including electronic mail.

	
  

	
1.7.5

	
The Employee grants consent to the Group and its affiliates and employees, wherever they may be located, to utilize and process the Employee’s personal information, including data collected by the Group for purposes related to the Employee’s employment. This may include transfer of the Employee’s personnel records outside of Israel and further transfers thereafter. All personnel records are considered confidential and access will be limited and restricted to individuals with a need to know or process that information solely for purposes relating to the Employee’s employment, such as management teams and human resource personnel. Any member of the Group and its respective affiliates and employees may share personnel records as needed solely for such purposes with third parties assisting human resources administration.

  

- 2 -

  

	
  

	
1.8

	
The duties of the Employee in accordance with this Agreement involve duties which require of her special personal care and loyalty, and therefore the directives of the Work Hours and Rest Law, 1951, or any law to be enacted in its place, will not be applicable to the Employee or to her activities which she will perform for the  Group and as such, the Employee will not be entitled to remuneration according to the Work Hours and Rest Law, 1951.

	
2.

	
Salary and Bonus

	
  

	
2.1

	
The Company agrees to pay to the Employee during the term of this Agreement a gross monthly salary of $7,555 (seven thousand five hundred fifty five U.S. dollars) (the: “Salary”). All amounts shall be paid in NIS in accordance with the representative rate of exchange of the U.S. dollar last published by the Bank of Israel prior to the date of payment, but in no event at an exchange rate of less than NIS 3.60: $1.00.An amount equal to $1,000 of the Salary is a special compensation for the Employee's obligation to confidentiality and not to compete with the Company, as set forth in Appendix B attached hereto (the "Special Compensation"). In the event of a breach by Employee of any of the provisions in Appendix B, Employee shall promptly return to the Company, the Special Consideration, together with interest and linkage differentials.

	
  

	
2.2

	
The Employee acknowledges that the nature of her employment is such that the Company cannot monitor her work hours. Therefore, the laws and regulations of Work and Rest Act – 1951 shall not apply to this Agreement and to the Employee’s relationship with the Company. The Employee acknowledges that she shall not be entitled to any further remuneration or payment whatsoever other than the Salary and/or benefits set out herein, unless expressly specified in this Agreement or otherwise agreed upon by the Company and the Employee in writing. 

	
  

	
2.3

	
In the event of an initial public offering of the Parent securities, by no later than October 31, 2011 (the: “IPO”) the Salary shall increase to $14,583 (fourteen thousand five hundred and eighty-three U.S. dollars). All amounts shall be paid in NIS in accordance with the representative rate of exchange of the U.S. dollar last published by the Bank of Israel prior to the date of payment, but in no event at an exchange rate of less than NIS 3.60: $1.00.

	
  

	
2.4

	
The Salary will be paid monthly, no later than the ninth day each month, one month in arrears, after deduction of any and all taxes and charges applicable to the Employee, as may be currently in effect or which may hereafter be enacted or required by law. The Employee shall notify the Company of any changes which may affect the Employee’s tax liability.

	
  

	
2.5

	
For the year ending December 31, 2011, the Company shall award the Employee: a performance bonus of no less than $150,000, to be paid as follows: (i) $100,000 ninety days following the closing of an initial public offering of the Company's shares ("IPO"), sale of the Corporation or significant financing event relating to the Corporation, and (ii) the remaining $50,000 on December 31, 2011.

 

	
  

	 	
An amount equal to $1,000 of the Salary is a special compensation for the Employee’s obligation to confidentiality and not to compete with the Company, as set forth in Exhibit C attached hereto (the “Special Compensation”).  In the event of a breach by Employee of any of the provisions in Exhibit C, Employee shall promptly return to the Company, the Special Consideration, together with interest and linkage differentials.

 

  

- 3 -

  

	
3.

	
Options

The Parent shall grant the Employee options to purchase 207,000 (Two Hundred and Seven Thousand) shares of Common Stock of the Parent, par value $0.01 each (the: "Options"), at an exercise price of $1.14, in accordance with section 102 of the Capital Gains Tax Track to the Income Tax Ordinance [New Version] 1961. The Options shall be subject to the terms and conditions of the Parent's 2006 Share Option Plan (the: "Plan") and as more fully detailed in the Option Grant Agreement attached hereto as Exhibit A.

	
4.

	
Employment Benefits

	
  

	
4.1

	
The Employee shall be entitled to the following benefits:

	 	
4.1.1

	
Pension Insurance.  The Company will pay on behalf of the Employee, either to an insurance company or to a pension fund (at the Employee’s discretion), an amount equal to:

 

(a) 8.33% of the Salary, which amount shall be allocated to a fund for severance pay; and

(b) 5% of the Salary, in case of an insurance policy, or 6%, in case of a pension fund, which amount shall be allocated to a provident fund or pension plan.

 

In addition, the Company will deduct an amount equal to 5% of the Salary, in case of an insurance policy, or 5.5% of the Salary, in case of a pension plan, which amount shall constitute the Employee's contribution to the manager’s insurance premium for the provident fund or pension plan.

 

	
  

	
In the event that the Employee chooses that payments be made to an insurance policy (and not to a pension fund), the Company will also contribute up to 2.5% of the Salary on account of disability insurance, provided that such insurance is available for the Employee.

	
  

	
The Employee hereby agrees and acknowledges that all of the payments that the Company shall make to the abovementioned manager’s insurance policy or pension fund shall be in lieu of any severance pay to which the Employee or the Employee’s successors shall be entitled to receive from the Company with respect to the Salary from which these payments were made for the period during which they were made, in accordance with Section 14 of the Severance Pay Law Order of the Minister of Labor and Welfare, published in the Official Publications Gazette No. 4659 on June 30, 1998, and modified later on, attached hereto as Exhibit B. The Company hereby waives in advance any claim it has or may have to be refunded any of the payments made to the manager’s insurance policy or pension fund, unless (1) the Employee’s right to severance pay is invalidated by a court ruling on the basis of Sections 16 or 17 of the Law (and in such case only to the extent it is invalidated), or (2) the Employee withdrew funds from the manager’s insurance policy for any reason other than death, disability or retirement at the age of 60 or more.

	 	
4.2

	
Educational Fund (Keren Hishtalmut).  The Company will contribute to a recognized educational fund an amount equal to 7.5% of each monthly payment of the Salary and will deduct from each monthly payment and contribute to such educational fund an additional amount equal to 2.5% of the Salary.

  

- 4 -

  

	
  

	
4.3

	
Sick Leave.  The Employee shall be entitled to fully paid sick leave pursuant to the Sick Pay Law 5736 – 1976. Should the Employee receive any payments from the insurer under the Employee’s disability insurance policy, such payments will be in place of any payment that would otherwise be due to the Employee from the Company under law.

	
  

	
4.4

	
Annual Recuperation Allowance (Dme'i Havra'a). The Employee shall be entitled to annual recuperation allowance according to the applicable directive.

	
  

	
4.5

	
Vacation.  The Employee shall be entitled to an annual vacation of 20 (Twenty) working days at full pay.  A “working day” means any of the days Sunday to Thursday, inclusive. The dates of vacation will be coordinated between the Employee and the Board in advance. Subject to the provision of due and reasonable prior notice, the Company may require the Employee to take vacation leave in accordance with applicable law.  The Employee must take at least 7 (Seven) consecutive vacation days per calendar year and may accumulate unused vacation days up to a maximum amount of 30 (Thirty) days. Any unused vacation days beyond this limit will be forfeited, subject to applicable law. With the termination of this Agreement, the Employee will receive be reimbursed for the accumulated vacation days.

	
  

	
4.6

	
Cellular Phone. The Company shall provide the Employee with a cellular phone, and shall finance the use thereof up to the sum set by time to time by the Company. Any use beyond this sum shall be deducted directly from the Employee’s Salary, and the Employee hereby consents to this. The use of the cellular phone shall be for personal and work related matters. Tax in respect of this benefit shall be paid by the Employee. It is the Employee’s responsibility to preserve the cell phone. In any event, the Employee shall not be entitled to use the cell phone as a pledge and shall relinquish it to the Company promptly upon its first request.

	
5.

	
Termination

	
  

	
5.1

	
Employment under this Agreement will be continue until either party gives the other a 60 days prior written notice of termination of this Agreement (the: "Notice Period").

	
  

	
5.2

	
Notwithstanding the above stated in section 5.1, subject to a completion of an IPO, the Notice Period shall be extended to 90 days.

	
  

	
5.3

	
In addition, the Company shall have the right to terminate this Agreement at any time by written notice in the event of Cause (as defined below). In such event, this Agreement and the employment relationship shall be deemed effectively terminated as of the time of delivery of such notice, the Employee will not be entitled to any payment in lieu of notice period and any office which the Employee held with or function performed for, the Parent, shall terminate immediately.

	
  

	
5.4

	
The term “Cause” shall mean (a) the Employee being convicted of a crime of moral turpitude, (b) a material breach of the Employee’s fiduciary duties towards the Company or Parent, including, without limitation, theft, embezzlement, or self-dealing, (b) engagement by the Employee in competing activities, or a material breach of the Employee’s confidentiality and non-disclosure obligations towards the Company or the Parent; or (c) any other circumstances under which severance pay (or part of it) may be denied the Employee upon termination of employment under the applicable Israeli law.

  

- 5 -

  

	
  

	
5.5

	
In any event of the termination of this Agreement, the Employee shall immediately return all Company or Parent property, equipment, materials and documents and the Employee shall cooperate with the Group and use the Employee’s best efforts to assist with the integration into the Group of the person or persons who will assume the Employee’s responsibilities.  At the option of the Company, the Employee shall during such period either continue to fulfill the Employee’s duties hereunder or remain absent from the premises of the Group.  Under no circumstances will the Employee have a lien over any property provided by or belonging to the Group.

	
  

	
5.6

	
Notwithstanding anything contained herein to the contrary, the Company at its sole discretion shall have the right to terminate the employment relationship (which shall include for this purpose, any office held with or function performed for, the Parent) with immediate effect or prior to the end of the notice period set forth above and make payment to the Employee in lieu of advance notice or the remainder of the term to which the Employee would otherwise be entitled in accordance with applicable law.

 

	
6.

	
Confidentiality; Proprietary Rights

The Employee has executed and agrees to be bound by the provisions governing confidentiality, proprietary rights and non-competition contained in Exhibit C to this Agreement, which provisions will survive termination of this Agreement for any reason.

	
7.

	
Successors and Assigns

	
  

	
7.1

	
This Agreement shall be binding upon and shall inure to the benefit of the Company, the Parent and their successors and assigns.

	
  

	
7.2

	
Neither this Agreement nor any right or interest hereunder shall be assignable or transferable by the Employee or the Employee’s beneficiaries or legal representatives, except by will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Employee's legal personal representative.

	
8.

	
Notice

For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be deemed to have been duly given when personally delivered or sent by registered mail, postage prepaid, addressed to the respective addresses set forth above or last given by each party to the other.  All notices and communications shall be deemed to have been received on the date of delivery thereof, except that notice of change of address shall be effective only upon receipt.

  

- 6 -

  

	
9.

	
Miscellaneous

	
  

	
9.1

	
No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Employee, the Company and the Parent.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party unless expressly set forth in this Agreement.

	
  

	
9.2

	
All of the provisions of this Agreement come to supplement the Employee’s undertakings and to complement one another and not to detract therefrom.

	
  

	
9.3

	
It is hereby acknowledged that the Company or the Parent may be required to disclose the terms of this Agreement, and/or other information relating to the Employee's employment by the Company, including, without limitations, details regarding the Employee's salary and benefits. The Employee hereby consents to such disclosure, and waives any rights or claims the Employee may have in connection with such disclosure.

	
10.

	
Governing Law

This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel.

	
11.

	
Severability

In the event that any provision of this Agreement is held invalid or unenforceable in any circumstances by a court of competent jurisdiction, the remainder of this Agreement, and the application of such provision in any other circumstances, shall not be affected thereby, and the unenforceable provision shall be enforced to the maximum extent permissible under law, or otherwise shall be replaced by an enforceable provision that most nearly approximates the intent of the unenforceable provision. In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part because of the duration, scope or geographic area thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration, scope or geographic area of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

	
12.

	
Interpretation.

The preamble to this Agreement and the schedules and exhibits to this Agreement constitute an integral part herein. The section headings contained herein are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

 

	
13.

	
Entire Agreement

	
  

	
13.1

	
This Agreement constitutes the entire agreement between the parties hereto and supersedes all prior agreements, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof.

	
  

	
13.2

	
This Agreement is a personal and specific employment agreement, which formalizes the relations between the Company, the Parent and the Employee, and which sets forth, in an exclusive and exhaustive manner, the Employee’s terms of employment by the Company. The Employee affirms that this Agreement provides the Employee with preferential rights and terms above those offered to other employees of the Company, and the parties therefore affirm that no customs, conventions, norms, agreements or other arrangements shall apply to the Employee.

  

- 7 -

  

	
14.

	
Prevention of Sexual Harassment

 

The Company does not tolerate violation of the Prevention of Sexual Harassment Law (the: “Law”). The Employee acknowledges that the Company brought to her attention the Company’s practice regarding prevention of sexual harassment, including the existence of guidelines for the prevention of sexual harassment, which may be viewed at any time with the person appointed to enforce the Law in the Company.

	
15.

	
Waiver

No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Employee, the Parent and the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.

  

	
16.

	
Notice to Employee (Employment Terms)

The parties agree that this Agreement constitutes, among others, notification in accordance with the Notice to Employees (Employment Terms) Law, 2002.

IN WITNESS WHEREOF:

	
WhiteSmoke Israel Ltd.

	
Employee

	
By:

	/s/ Hilla Ovil-Brenner  	  	
Name:

	
Hilla Ovil-Brenner

	
Name:

	

Hilla Ovil-Brenner

	  	
ID#:

	
32085375

	
Title:

	CEO  	  	
Signature:

	/s/ Hilla Ovil-Brenner 
	
Signature:

	  	  	
Dated:

	  
	
Dated:

	  	  	  

	
WhiteSmoke Inc.

	  
	
By:

	/s/ Hilla Ovil-Brenner	  
	
Name:

	

Hilla Ovil-Brenner

	  
	
Title:

	  	  
	
Signature:

	  	  
	
Dated:

	  	  

 

  

- 8 -

  

 

Exhibit A

Option Grant Agreement

 

THIS OPTION AGREEMENT ("Agreement") is made and entered into as of March 31, 2011, by and between WhiteSmoke, Inc., a Delaware corporation, ("Company"), WhiteSmoke Israel Ltd., an Israeli company ("Subsidiary"), and Hilla Ovil-Brenner, Israeli ID no. 32085375 ("Optionee").

 

WHEREAS, on March 13, 2006 the Company and the Subsidiary duly adopted and approved the WhiteSmoke 2006 Employee Share Option Plan, a copy of which is appended hereto as Exhibit A, forming an integral part hereof ("Plan"); and

 

WHEREAS, pursuant to the Plan, the Company and the Subsidiary have decided to grant Options to purchase Shares of the Company to the Optionee, and the Optionee has agreed to such grant, subject to all the terms and conditions as set forth in the Plan and as provided herein;

 

NOW, THEREFORE, it is agreed as follows:

 

	
1.

	
Preamble, Exhibits and Definitions

 

	
1.1

	
The preamble and exhibits to this Agreement constitute an integral part hereof.

 

	
1.2

	
Unless otherwise defined herein, capitalized terms used herein shall have the meaning ascribed to them in the Plan.

 

	
2.

	
Grant of Options

 

	
2.1

	
The Company hereby grants to the Optionee the number of Options as set forth in Exhibit B hereto, each Option shall be exercisable for one Share, upon payment of the Purchase Price as set forth in Exhibit B, subject to the terms and the conditions as set forth in the Plan and as provided herein.

 

	
2.2

	
The Optionee is aware that the Company intends in the future to issue additional shares and to grant additional options to various entities and individuals, as the Company in its sole discretion shall determine.

 

	
3.

	
Period of Option and Conditions of Exercise

 

	
3.1

	
The terms of this Option Agreement shall commence on the Date of Grant and terminate at the Expiration Date, or at the time at which the Option expires pursuant to the terms of the Plan or pursuant to this Option Agreement.

 

	
3.2

	
Options may be exercised only to purchase whole Shares, and in no case may a fraction of a Share be purchased. If any fractional Share would be deliverable upon exercise, such fraction shall be rounded up one-half or less, or otherwise rounded down, to the nearest whole number.

 

	
4.

	
Adjustments

 

Notwithstanding anything to the contrary in the Plan and in addition thereto, if in any Transaction as described in the Plan, a Successor Company (or parent or subsidiary of the Successor Company) does not agree to assume or substitute for the Options, all unexercised Options shall be expired as of the date of the Transaction.

 

  

- 9 -

 

 

	
5.

	
Vesting; Period of Exercise

 

Subject to the provisions of the Plan, Options shall vest and become exercisable according to the Vesting Dates set forth in Exhibit B hereto, provided that the Optionee is an Employee of or providing services to the Company and/or its Affiliates on the applicable Vesting Date.  All unexercised Options granted to the Optionee shall terminate and shall no longer be exercisable on the Expiration Date, as described in the Plan.

 

	
6.

	
Exercise of Options

 

	
6.1

	
Options may be exercised in accordance with the provisions of the Plan.

 

	
6.2

	
In order for the Company to issue Shares upon the exercise of any of the Options, the Optionee hereby agrees to sign any and all documents required by any applicable law and/or by the Company's Certificate of Incorporation as amended from time to time.

 

	
6.3

	
The Company shall not be obligated to issue any Shares upon the exercise of an Option if such issuance, in the opinion of the Company, might constitute a violation by the Company of any provision of law.

 

	
7.

	
Restrictions on Transfer of Options and Shares

 

	
7.1

	
The transfer of Options and the transfer of Shares to be issued upon exercise of the Options shall be subject to the limitations set forth in the Plan and in the Company's Certificate of Incorporation as amended from time to time and any stockholders' agreement to which the holders of shares of common stock of the Company are bound.

 

	
7.2

	
The Optionee acknowledges that in the event the Company's shares shall be registered for trading in any public market, the Optionee's right to sell Shares may be subject to limitations (including a lock-up period), as will be requested by the Company or its underwriters, and the Optionee unconditionally agrees and accepts any such limitations. The Optionee acknowledges that in order to enforce the above restriction, the Company may impose stop-transfer instructions with respect to the exercised Shares.

 

	
7.3

	
The Optionee shall not dispose of any Shares in transactions which violate, in the opinion of the Company, any applicable laws, rules and regulations.

 

	
7.4

	
The Optionee agrees that the Company shall have the authority to endorse upon the certificate or certificates representing the Shares such legends referring to the foregoing restrictions, and any other applicable restrictions as it may deem appropriate (which do not violate the Optionee's rights according to this Option Agreement).

 

	
8.

	
Taxes; Indemnification

 

	
8.1

	
Any tax consequences arising from the grant or exercise of any Option, from the payment for Shares covered thereby or from any other event or act (of the Company and/or the Subsidiary, or the Optionee), hereunder, shall be borne solely by the Optionee. The Company and/or the Subsidiary shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Optionee hereby agrees to indemnify the Company and/or the Subsidiary and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Optionee.

 

  

- 10 -

 

 

	
8.2

	
The Optionee will not be entitled to receive from the Company any Shares allocated or issued upon the exercise of Options prior to the full payments of the Optionee's tax liabilities arising from Options which were granted to him and/or Shares issued upon the exercise of Options. For the avoidance of doubt, the Company shall not be required to release any share certificate to the Optionee until all payments required to be made by the Optionee have been fully satisfied.

 

	
8.3

	
The receipt of the Options and the acquisition of the Shares to be issued upon the exercise of the Options may result in tax consequences. THE OPTIONEE IS ADVISED TO CONSULT A TAX ADVISER WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

 

	
9.

	
Miscellaneous

 

	
9.1

	
No Obligation to Exercise Options. The grant and acceptance of these Options imposes no obligation on the Optionee to exercise it.

 

	
9.2

	
Confidentiality.  The Optionee shall regard the information in this Option Agreement and its exhibits attached hereto as confidential information and the Optionee shall not reveal its contents to anyone except when required by law or for the purpose of gaining legal or tax advice.

 

	
9.3

	
Continuation of Employment or Service.  Neither the Plan nor this Option Agreement shall impose any obligation on the Company or the Subsidiary to continue the Optionee's employment or service and nothing in the Plan or in this Option Agreement shall confer upon the Optionee any right to continue in the employment or service of the Company and/or an Affiliate or restrict the right of the Company or an Affiliate to terminate such employment or service at any time.

 

	
9.4

	
Entire Agreement. Subject to the provisions of the Plan to which this Option Agreement is subject, this Option Agreement, together with the exhibits hereto, constitute the entire agreement between the Optionee and the Company with respect to Options granted hereunder, and supersedes all prior agreements, understandings and arrangements, oral or written, between the Optionee and the Company with respect to the subject matter hereof.

 

	
9.5

	
Failure to Enforce - Not a Waiver. The failure of any party to enforce at any time any provisions of this Option Agreement or the Plan shall in no way be construed to be a waiver of such provision or of any other provision hereof.

 

	
9.6

	
Provisions of the Plan. The Options provided for herein are granted pursuant to the Plan and said Options and this Option Agreement are in all respects governed by the Plan and subject to all of the terms and provisions of the Plan.  Any interpretation of this Option Agreement will be made in accordance with the Plan but in the event there is any contradiction or inconsistency between the provisions of this Option Agreement and the Plan, the provisions of the Option Agreement will prevail.

 

  

- 11 -

 

 

	
9.7

	
Binding Effect. The Plan and this Option Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereof.

 

	
9.8

	
Notices. All notices or other communications given or made hereunder shall be in writing and shall be delivered or mailed by registered mail or delivered by email or facsimile with written confirmation of receipt to the Optionee and/or to the Company and/or the Subsidiary at the addresses shown on the letterhead above, or at such other place as the Company or the Subsidiary may designate by written notice to the Optionee. The Optionee is responsible for notifying the Company and the Subsidiary in writing of any change in the Optionee's address, and the Company shall be deemed to have complied with any obligation to provide the Optionee with notice by sending such notice to the address indicated below.

 

[Remainder of page intentionally left blank]

 

  

- 12 -

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 

	
/s/ Hilla Ovil-Brenner

	 	
/s/ Hilla Ovil-Brenner

	
WhiteSmoke, Inc.

	 	
WhiteSmoke Israel Ltd.

I, the undersigned, hereby acknowledge receipt of a copy of the Plan and accept the Options subject to all of the terms and provisions thereof.  I have reviewed the Plan and this Option Agreement in its entirety, have had an opportunity to obtain the advice of counsel prior to executing this Option Agreement, and fully understand all provisions of this Option Agreement.  I agree to notify the Company upon any change in the residence address indicated above.

 

	
3/31/2011

	 	
/s/ Hilla Ovil-Brenner

	
Date

	 	
Hilla Ovil-Brenner

	
Exhibits

	 	  
	  	 	  
	
Exhibit A

	 	
WhiteSmoke 2006 Employee Share Option Plan

	  	 	  
	
Exhibit B

	 	
Terms of the Option

	  	 	  
	
Proxy

	 	  

 

  

- 13 -

 

 

Exhibit B

 

TERMS OF THE OPTION

 

	
Name of the Optionee:

	 	
Hilla Ovil-Brenner

	  	 	  
	
Date of Grant:

	 	
March 31, 2011

	  	 	  
	
Vesting Commencement Date:

	 	
Closing of Company's Initial Public Offering __________

	  	 	  
	
Designation:

	 	
R Approved 102 Option:

	  	 	  
	  	 	
Capital Gain Option (CGO) x ;or

	  	 	  
	  	 	
Ordinary Income Option (OIO)  ̈

	  	 	  
	  	 	
 ̈ Unapproved 102 Option

	  	 	  
	  	 	
 ̈ 3(i) Option

	
Number of Options granted:

	 	 	207,000	 
	  	 	 	 	 
	
Purchase Price:

	 	$	1.14	 

Vesting Schedule:

 

The Options shall be exercisable in whole or in part, according to the following vesting schedule:

 

60% to vest on the 1st anniversary of the Vesting Commencement Date, 20% to vest on the 2nd anniversary of the Vesting Commencement Date and the remaining 20%  to vest on the 3rd anniversary of the Vesting Commencement Date.

 

The options may be exercised using a broker-assisted cashless exercise. pursuant to which the Company's broker shall engage in a same-day short sale of the number of shares of common stock of the Company (the "Shares") for which the option has been exercised. The broker shall advance the Company proceeds of the sale equal to the exercise price plus any amount required for covering any withholding taxes and the remaining proceeds shall be available to the Optionee. Any broker costs shall be borne by the Company.

 

	
/s/ Hilla Ovil-Brenner

	 	
/s/ Hilla Ovil-Brenner

	 	
/s/ Hilla Ovil-Brenner

	
Hilla Ovil-Brenner

	 	
WhiteSmoke, Inc.

	 	
WhiteSmoke Israel Ltd.

 

  

- 14 -

 

 

PROXY

 

The undersigned, as a holder of securities of WhiteSmoke, Inc. described below, hereby irrevocably appoints WhiteSmoke, Inc. as my proxy to attend all shareholders' meetings and to vote, execute consents, and otherwise represent me with respect to exercised shares (i.e. options exercised into shares pursuant to the 2006 Employee Share Option Plan in the same manner and with the same effect as if the undersigned were personally present at any such meeting or voting such securities or personally acting on any matters submitted to shareholders for approval or consent.

 

This proxy is made pursuant the WhiteSmoke 2006 Employee Share Option Plan.

 

The Shares shall be voted by the proxy holder in the same proportion as the votes of the other shareholders of the Company.

 

This proxy is irrevocable as it may affect rights of third parties.

 

The irrevocable proxy will remain in full force and effect until the consummation of an IPO, upon which it will terminate automatically.

 

This proxy shall be signed exactly as the shareholder's name appears on his share certificate. Joint shareholders must each sign this proxy. If signed by an attorney in fact, the Power of Attorney must be attached.

 

	
   

	  	
    

	  	
    

	
Name

	  	
Signature

	  	
Date

 

  

- 15 -

 

 

EXHIBIT B

 

General Approval (Consolidated Version) Regarding

Employer Payments to Pension Funds and Insurance

Funds in Lieu of Severance Pay

Pursuant to the Severance Pay Law, 1963

 

Pursuant to my authority according to appendix 14 of the Severance Pay Law, 1963 (the "Law”), I confirm that payments made by an employer as of the date of the publication of this General Approval, for its employee to a comprehensive pension in a provident fund for a pension that is not an insurance fund as defined in the Income Tax Regulations (Guidelines for Approving and Managing Provident Funds), 1964 (a “Pension Fund”), or to a managers’ insurance that includes the possibility of pension payments or a combination of payments to a pension program and a program that is not for a pension, in such managers' insurance fund (an “Insurance Fund”), including payments made while combining payments to the Pension Fund and Insurance Fund, whether a pension plan exists in the Insurance Fund or not ("Employer Payments"), will be in lieu of severance pay due to the said employee as a result of the salary from which said payments were paid and the period of time in which they were made (the “Exempt Salary”); provided that all of the following conditions are met:

	
  

	
(1)

	
Employer Payments –

 

	
  

	
(a)

	
For pension funds, must be no less than 14  1/3 % of the Exempt Salary or 12 % of the Exempt Salary if the employer also makes payments for the completion of severance pay to the severance pay fund or an Insurance Fund in the name of the employee, of 2 1/3 % of the Exempt Salary. In the event that the employer did not pay the said 2 1/3 % in addition to the 12 %, the payments will be in lieu of 72 % of the employee’s severance pay;

 

	
  

	
(b)

	
Insurance Funds, must be no less than one of the following:

 

	
  

	
(1)

	
13 1/3 % of the Exempt Salary, if the employer also pays the employee, payments for monthly guaranteed minimum income in the event of work disability, in a plan approved by the Commissioner of Capital Market Insurance and Savings Department at the Ministry of Finance, the lower of,  an amount necessary to secure 75% of the Exempt Salary, and at least 2 1⁄2 % of the Exempt Salary (“Disability Payments”);

 

	
  

	
(2)

	
11 % of the Exempt Salary, if the employer paid in addition Disability Payments, in which case the employer’s payments will be in lieu of 72% of the employee’s severance pay only. If the employer paid in addition to the foregoing, also payments towards the completion of severance pay to the severance pay fund or Insurance Fund in the name of the employee, in the amount of 2 1/3% of the Exempt Salary, the Employer Payments will be in place of 100% of the employee’s severance pay.

 

	
  

	
(2)

	
No later than three months from the commencement of the Employer Payments, an agreement in writing between the employer and employee will be executed in which:

	
  

	
(a)

	
The employee’s consent to this arrangement in accordance with this Approval in a form that details the Employer Payments and the Pension Fund and Insurance Fund, as applicable; the said agreement must also include the wording of this Approval;

 

	
  

	
(b)

	
The employer’s waiver in advance of any right that he may have to a refund of his Employer Payments, unless the employee’s rights to severance pay were revoked in a court ruling under Sections 16 or 17 of the Law and in the event that it was revoked or the employee withdrew funds from the pension fund or the insurance fund in an event that is not a “qualifying event”; for this purpose, “Qualifying Event” is death, disability or retirement at the age of sixty or more.

 

	
  

	
(c)

	
Nothing in this Approval is intended to adversely affect the employee’s rights to severance pay by law, a collective agreement, an extension order or an employment agreement, resulting from the salary beyond the Exempt Salary.

 

  

- 16 -

  

EXHIBIT C

CONFIDENTIALITY, NON-COMPETITION AND

INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

My obligations under this Confidentiality, Non-Competition and Intellectual Property Assignment Agreement are towards WhiteSmoke, Inc. and WhiteSmoke Israel Ltd. (together, the "Company"), and towards their present and future parent companies, subsidiaries, affiliates and successors. All of the aforementioned entities shall be referred to collectively as the "Company's Entities".

	
1.

	
Confidentiality

I will regard and retain as confidential and will not divulge to any third party, or use for any unauthorized purposes either during or after the term of my employment by the Company, any confidential information, as defined below, that I have acquired during my service or in connection with my service or contacts with the Company's Entities, without the written consent of an authorized representative of the Company.

	
2.

	
Confidential Information

Confidential Information shall include, but will not be limited to, information regarding research and development related to actual or anticipated products, inventions, whether patentable or non-patentable, hardware, software or other products, methods of manufacture, trade secrets, business plans, customer lists, finances, and any other data related to the business or affairs of the Company or the Company's Entities.  Confidential Information will include information in written, oral or any other form of communication. Confidential information includes the terms of this Agreement.

	
3.

	
Return of Confidential Information

All materials including, but not limited to, documents, notes, memoranda, records, diagrams, blueprints, bulletins, formulas, reports, computer programs, and any other material of any kind and in any form, coming into my possession or prepared by me in connection with my employment, are the exclusive property of the Company ("Documents").  I agree to return to the Company all such Documents upon termination of my engagement by the Company, unless I acquire the Company's specific written consent to release any such Document.

	
4.

	
Acknowledgement of Ownership; Assignment of Inventions.

	
  

	
4.1

	
Proprietary Rights.  The term “Proprietary Rights” shall mean all trade secret, patent, copyright, mask work, design, and other intellectual property rights throughout the world.

	
  

	
4.2

	
Disclosure of Inventions.  I will promptly disclose in writing to the Company all Inventions, made or discovered or conceived or reduced to practice or developed by me, either alone or jointly with others, during the term of my employment. I will also disclose to the Company all Inventions made, discovered, conceived, reduced to practice, or developed by me within three (3) months after the termination of my employment with the Company which resulted, in whole or in part, from my prior employment by the Company. Such disclosures shall be received by the Company in confidence, to the extent such Inventions are not assigned to the Company pursuant to this Agreement.

  

- 17 -

  

	
  

	
4.3

	
Assignment of Inventions.  I hereby assign and agree to assign in the future (when any such Inventions or Proprietary Rights are first reduced to practice or first fixed in a tangible medium, as applicable) to the Company all my right, title and interest in and to any and all Inventions whether or not patentable or registrable under copyright or other statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others, during the period of my employment with the Company.  Inventions assigned to the Company, or to a third party as directed by the Company pursuant to this Section 4, are hereinafter referred to as “Company Inventions”.

	
  

	
4.4

	
Government or Third Party.  I also agree to assign all my right, title and interest in and to any particular Company Invention to any third party, including without limitation government agency, as directed by the Company.

	
  

	
4.5

	
Works Made for Hire.  I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my employment and which are protectable by copyright are the sole property of the Company pursuant to applicable copyright law.

 

	
  

	
4.6

	
Assignment or Waiver of Moral Rights.  Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights” (collectively “Moral Rights”).  To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any action of the Company that would violate such Moral Rights in the absence of such consent.

	
  

	
4.7

	
Enforcement of Proprietary Rights.  I will assist the Company in every proper way to obtain, and from time to time enforce, any Proprietary Rights relating to Company Inventions in any and all countries.  To that end, I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and the assignment thereof.  In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee.  My obligation to assist the Company with respect to Proprietary Rights relating to such Company Inventions in any and all countries shall continue beyond the termination of my employment, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company's request on such assistance.

	
  

	
4.8

	
Service Inventions. For the removal of any doubt, I agree that the provisions contained in Sections 4.2, 4.3 and 4.4 above will apply also to any “Service Inventions” as defined in the Israeli Patent Law, 1967 (the: “Patent Law”).  However, in no event will such Service Invention become my property, and the provisions contained in Section 132(b) of the Patent Law shall not apply unless the Company provides in writing otherwise.  I acknowledge and agree that the compensation and consideration I receive from the Company includes all compensation and consideration to which I may be entitled under law for Service Inventions, including, but without limitation to, the provisions contained in Section 134 of the Patent Law, and that I will not be entitled to additional royalties, consideration or other payments with regard to any prior Inventions, Company Inventions, Service Inventions or any of the intellectual property rights set forth above, including any commercialization of such prior Inventions, Company Inventions, Service Inventions or other intellectual property rights.

  

- 18 -

  

	
  

	
4.9

	
Records.  I agree to keep and maintain adequate and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all of the Company's Proprietary Information developed by me and all of the Company's Inventions made by me during the period of my employment at the Company, which records shall be available to and remain the sole property of the Company at all times.

	
5.

	
Disclosure and Assignment of Inventions

I will promptly disclose and describe to the Company all of the inventions which I may conceive, make, reduce to practice, develop, author, or work on, in whole or in part, independently, or jointly with others, during the period of my employment by the Company, which either; (i) relate to the Company's Entities' business or actual or demonstrably anticipated research or development, (ii) are developed in whole or in part on the Company's time or with the use of any of the Company's equipment, supplies, facilities or trade secret information, or (iii) results directly or indirectly from any work I performed for the Company ("Inventions"). I agree to assign and do hereby assign to the Company any right, title and interest I might have worldwide in such Inventions and any intellectual property right based upon such Inventions.

  

	
6.

	
Assistance

I will, at the Company's expense, assist in preparation and registration of patents and any other intellectual property right in favor of the Company, in any jurisdiction deemed appropriate by the Company. Such assistance shall include, without limitation, the preparation of documents, drawings and other data and execution of assignments, applications and other forms. I agree to perform this obligation during and after my employment by the Company. In order to give full effect to this section I hereby irrevocably appoint the Company (and its representatives) as my attorney in fact, authorized in my name and on my behalf to execute all such documents.

	
7.

	
Non Competition

	
  

	
7.1

	
In any event of termination of my engagement with the Company, I agree that I will not, for a period of 24 months following such termination, either alone or jointly with others or as an agent, consultant or employee of any person, firm or company, directly or indirectly, carry on or engage in any activity or business which shall be in competition with the business of the Company's Entities ("Competing Entities").

	
  

	
7.2

	
Without derogating from the generality of the above, for the purpose of this Agreement, Competing Entities shall include any person or entity, that is engaged in development, production, or commercial activities similar to those of the Company, or major clients of the Company.

	
8.

	
Non-Solicitation

During the term of my employment by the Company and thereafter for a period of 24 months, I will not solicit or encourage or cause others to solicit or encourage any employees of the Company's Entities to terminate their employment with the Company, and I will not assist any employees of the Company's Entities to engage with any Competing Entities.

 

	
9.

	
No Conflicting Obligations

I will not disclose to the Company any proprietary or confidential information belonging to any third party, including any prior or current employer or contractor, unless I have first received the written approval of that third party and present it to the Company. I undertake not to perform any activity related to my engagement with the Company on the premises of any third party, or while using any equipment or materials that belong to any such third party, unless instructed to do so by the Company.

  

- 19 -

  

	
10.

	
Third Party Information

I recognize that the Company has received and will in the future receive from third parties their confidential or proprietary information, subject to a duty on the Company's part to maintain the confidentiality of such information and to use it only for certain limited purposes.  I agree to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person or entity or to use it except as necessary in carrying out my position with the Company, consistent with the Company's agreement with such third party.

	
11.

	
Breach of Obligation

I am aware that a breach of any of the obligations under this Agreement will cause the Company or the Company's Entities serious and irreparable harm, to which no monetary compensation can be an appropriate remedy. Therefore, I agree that if such a breach occurs, the Company shall be entitled, without prejudice, to take all legal means necessary, including any injunctive relief, to restrain any continuation or further breach of this Agreement, without any objection from my side.

	
12.

	
Assignment

This Agreement may be assigned by the Company. I may not assign or delegate my obligations under this Agreement without the Company's prior written approval.

	
13.

	
Survival

My obligations under this Agreement shall remain in full force for a period of 5 years from termination, for any reason, of my engagement with the Company, except for confidentiality which shall not be limited in time.

	
14.

	
Severability

In the event that any provision of this Agreement is held invalid or unenforceable in any circumstances by a court of competent jurisdiction, the remainder of this Agreement, and the application of such provision in any other circumstances, shall not be affected thereby, and the unenforceable provision shall be enforced to the maximum extent permissible under law, or otherwise shall be replaced by an enforceable provision that most nearly approximates the intent of the unenforceable provision. In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in while or in part because of the duration, scope or geographic area thereof, the parties hereto agree that said court in making such determination shall have the power to reduce the duration, scope or geographic area of such provision to the extent necessary to make it enforceable, and that the Agreement in its reduced form shall be valid and enforceable to the full extent permitted by law.

	
15.

	
Condition to Engagement

I acknowledge that execution of this Agreement is a condition to the Company's engagement with me and the disclosure of any Confidential Information. I hereby declare and acknowledge that my confidentiality and non-competition obligations under this Agreement are fair, reasonable, and proportional, especially in light of the Special Compensation I receive under the employment agreement to which this Agreement is attached, and are designed to protect the Company's and the Company's Entities' secrets and their confidential information, which constitute the essence of their protected business and commercial advantage in which significant capital investments were made.

  

- 20 -

  

IN WITNESS WHEREOF, I hereunto set my hand:

	
/s/ Hilla Ovil-Brenner

	 	
 

	
Hilla Ovil-Brenner

	 	
Date

  

- 21 -

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