Document:

ex_111944.htm

Exhibit 10.1

EXECUTIVE SEVERANCE AGREEMENT

 

This Executive Severance Agreement (“Agreement”) is hereby entered into as of April 27, 2018 by and between ENSERVCO CORPORATION (the “Company”) and AUSTIN PEITZ (the “Executive”), who are collectively referred to herein as the “Parties” and each as a “Party.”

 

WHEREAS, Executive is employed as Senior Vice President of Field Operations of the Company pursuant to an Employment Agreement between the Parities entered into effective June 22, 2016 (“Employment Agreement”). The Employment Agreement provides for certain benefits and compensation to be paid to the Executive upon termination of his employment. The Company and the Executive have discussed termination of the Executive. The Executive and the Company desire to resolve all potential claims of the Executive under the Employment Agreement and the Executive is willing to resign his positions with the Company and its subsidiaries effective on April 27, 2018.

 

WHEREAS, Company desires to provide Executive with severance payments and benefits in recognition of Executive’s service and contributions to the Company and to settle, fully and finally, all matters between them.

 

THEREFORE, in consideration of the terms and promises made in this Agreement, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.     Termination of Executive. Executive’s employment with the Company, and its subsidiaries, shall terminate pursuant to the terms of this Agreement, including, but not limited to, his positions as Senior Vice President of Field Operations as well as from any officer or director position with any subsidiary of the Company, effective April 27, 2018 (the “Separation Date”). The parties intend and agree that such termination is involuntary and constitutes an “Involuntary Separation from Service” as defined in Treasury Regulation § 1.409A-1(n).

 

2.     Executive’s Compensation. In lieu of and in settlement of the amounts due to Executive under the Employment Agreement, the Company agrees to pay and provide to Executive the following amounts and benefits:

 

(a)     Accrued Salary and Benefits. The Company shall pay Executive his base salary through the Separation Date and Executive hereby resigns as an officer of the Company and any other positions with its subsidiaries. In addition, on the Separation Date, the Executive shall be paid any remaining balance of the accrued and unpaid benefits, including unused vacation days and expense reimbursements which are then due and payable under the Employment Agreement. This payment shall be paid regardless of the Executive’s right to revoke this Agreement under Section 14, below.

 

(b)     Severance Benefits. If Executive does not exercise his right to revoke this Agreement under Section 14 below, Executive shall receive the following severance payments (“Severance Benefits”), subject to appropriate employer and employee withholding by the Company as contemplated in Section 3 below, all of such payments to be treated as “wages” as defined in C.R.S. § 8-4-101(14)(a) notwithstanding § 8-4-101(14)(b):

 

	 	
			(i)

				
			Payment to Executive of 12 months’ of Base Salary as existing as of April 27, 2018 to be paid within five business days from the date hereof plus a bonus equal to the greater of (a) the Executive’s most recent annual bonus or (b) six months of Base Salary commencing on the first payday following the Separation Date and certain Company property as described in Section 7(d) hereof (primarily a pickup truck); and

			

 

	 	
			(ii)

				
			Company will provide Executive with medical, dental and vision benefits of like amount and tenor as of the date hereof until the earlier of 12 months after April 27, 2018 or substantially similar coverage can be obtained by Executive through another employer. Executive shall use good faith, commercially reasonable best efforts to obtain such coverage in the event he obtains employment before the earlier of such time periods.

			

 

(c)     Stock Options. All stock options relating to the common stock of the Company held by Executive will immediately vest on the Separation Date (in accordance with the agreements establishing such options) and Executive will have until 5:00 p.m. Mountain Time on July 26, 2018 to exercise his incentive stock options to the extent of 33,333 shares and until 5:00 p.m. Mountain Time on April 27, 2019 to exercise all of his other stock options, in each such case, in accordance with the applicable Option Agreements between the Parties.

 

(d)     Change of Control. In the event of a Change of Control (as defined in the Employment Agreement), all unpaid obligations to be paid under paragraphs 2(a) or 2(b) will be payable to Executive immediately before the completion of such transaction, and such payment will be subject to the provisions of Section 3, below.

 

3.     Tax Liability. The parties agree that the severance payments as described in Sections 2(a) and 2(b) are employee compensation for the purposes of the Internal Revenue Code, and the Company will make all appropriate employee and employer withholdings relating thereto and report the severance payment on IRS Form W-2. Company will have the right to deduct from any compensation payable to Executive under this Agreement all federal, state and local income taxes, social security taxes and such other mandatory deductions normally deducted from the Executive’s compensation (that is, the Company will not deduct from Executive’s compensation the employer’s share of FICA, FUTA, Medicaid, etc.) as may now be in effect or may be enacted or required after the Effective Date of this Agreement.

 

4.     Section 409A. The parties believe that this Agreement, and the manner and timing of payments, benefits and amounts to be deferred hereunder are exempt from the requirements and provisions of Section 409A of the Code pursuant to the exemptions thereunder, including, but not limited to the short term deferral and payment exemption under Treasury Regulation §1.409A-1(b)(4)(i) and/or the payment limitations applicable under Treasury Regulation §1.409A-1(b)(9)(iii) applicable to involuntary terminations, or other applicable exemptions. Each installment payment of salary, compensation, bonuses or other amounts to Executive hereunder, vesting of stock options, or other benefit shall be treated as a separate payment for purposes of Section 409A of the Code and the exemptions thereunder and the parties intend that such exemptions apply to exempt all or as much of the payments to be made to Executive hereunder from Section 409A. Notwithstanding any other provision of this Agreement to the contrary, the provision, time and manner of payment or distribution of all compensation and benefits provided by this Agreement that constitute nonqualified deferred compensation subject to and not exempted from the requirements of Section 409A of the Code (“Section 409A Deferred Compensation”) shall be subject to, limited by and construed in accordance with the requirements of Section 409A of the Code and all regulations and other guidance promulgated by the Secretary of the Treasury pursuant to such Section (such Section, regulations and other guidance being referred to herein as “Section 409A”), including the following:

 

(a)     Separation from Service. Payments and benefits constituting Section 409A Deferred Compensation otherwise payable or provided pursuant to Section 2(b) upon the Executive’s termination of employment shall be paid or provided only at the time of a termination of the Executive’s employment that constitutes a Separation from Service. For the purposes of this Agreement, a “Separation from Service” is a separation from service within the meaning of Treasury Regulation Section 1.409A-1(h).

 

 

 

 

(b)     Six-Month Delay. If, at the time of a Separation from Service of the Executive, the Executive is a “Specified Employee” within the meaning of Section 409A(a)(2)(B)(i) (a “Specified Employee”), then any payments and benefits constituting Section 409A Deferred Compensation to be paid or provided pursuant to Section 2(b) upon the Separation from Service of the Executive shall be paid or provided commencing on the later of (i) the date that is six months after the date of such Separation from Service or, if earlier, the date of death of the Executive (in either case, the “Delayed Payment Date”), or (ii) the date or dates on which such Section 409A Deferred Compensation would otherwise be paid or provided in accordance with Section 2(a). All such amounts that would, but for this Section 4(b), become payable prior to the Delayed Payment Date shall be accumulated and paid on the Delayed Payment Date.

 

(c)     Stock-Based Awards. The vesting of any stock-based compensation awards which constitute Section 409A Deferred Compensation and are held by the Executive, if the Executive is a Specified Employee, shall be accelerated in accordance with this Agreement to the extent applicable; provided, however, that the payment in settlement of any such awards shall occur on the Delayed Payment Date.

 

(d)     Installments. Executive’s right to receive any installment payments payable hereunder shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment for purposes of Section 409A.

 

(e)     Reimbursements. To the extent that any reimbursements payable to Executive pursuant to this Agreement are subject to the provisions of Section 409A, such reimbursements shall be paid to Executive no later than December 31 of the year following the year in which the cost was incurred; the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year; and Executive’s right to reimbursement under this Agreement will not be subject to liquidation or exchange for another benefit.

 

5.     Section 280G Safe Harbor Cap. If it shall be determined that any payment or distribution or any part thereof of any type to or for the benefit of Executive whether pursuant to this Agreement or any other agreement between Executive and the Company, or any person or entity that acquires ownership or effective control of the Company, or ownership of a substantial portion of the Company's assets (within the meaning of Section 280G of the Code) whether paid or payable or distributed or distributable pursuant to the terms of the Agreement or any other agreement, (the “Total Payments''), is or will be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”), if the net after-tax payment to Executive after reducing Executive's Total Payments to the Safe Harbor Cap is greater than the net after-tax (including the Excise Tax) payment to Executive without such reduction.

 

The reduction of the amounts payable hereunder, if applicable, shall be made by reducing payments that trigger the excise tax, and such reductions will be first applied to the payment made pursuant to the Agreement and then to payments pursuant to any other agreements that are not subject to Section 409A of the Code, and finally to payments pursuant to any other agreements that are subject to Section 409A of the Code, provided that Executive shall have no ability to designate the order of such reductions. All mathematical determinations, and all determinations as to whether any of the Total Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are required to be made under this Section 5, including determinations as to whether the Total Payments to Executive shall be reduced to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made by an accounting firm selected by the Company (the “Accounting Firm'').

 

If the Accounting Firm determines that the Total Payments to Executive shall be reduced to the Safe Harbor Cap (the “Cutback Payment”) and it is established pursuant to a final determination of a court or an Internal Revenue Service (the “IRS”) proceeding which has been finally and conclusively resolved, that the Cutback Payment is in excess of the limitations provided in this Section 5 (such excess amount hereinafter referred to as an “Excess Payment”), such Excess Payment shall be deemed for all purposes to be an overpayment to Executive made on the date such Executive received the Excess Payment. The Company or Executive, as applicable, shall notify the other within 30 days of its receipt of such final determination of the amount of the Excess Payment, along with a copy of the final determination, and Executive shall repay the Excess Payment amount to the Company within 30 days of such notification; provided, however, if Executive shall be required to pay an Excise Tax by reason of receiving such Excess Payment (regardless of the obligation to repay the Company), Executive shall provide the Company with written evidence of such requirement to pay an Excise Tax amount, and shall then be required to repay the Excess Payment reduced by such Excise Tax amount (or if already paid by Executive, the Company shall reimburse Executive within 10 days of proof of payment).

 

6.     Disclosure. Executive will be given a reasonable opportunity to review and approve any public disclosure concerning his termination of employment with the Company in a Form 8-K, press release, or other manner.

 

7.     Restrictive Covenants.

 

(a)     Confidential Information. During Executive’s employment and for a period of two years following the Separation Date, Executive will not, without the prior written consent of the Board of Directors of the Company, use, divulge, disclose or make accessible to any other person, firm, partnership, corporation or other entity any Confidential Information pertaining to the business of the Company or any of its affiliates, except (a) while employed by, or providing consulting services to, the Company, in the business of and for the benefit of the Company, or (b) as required by law. “Confidential Information” includes without limitation non-public information concerning the financial data, business plans, product development (or other proprietary product data), customer lists, marketing, acquisition and divestiture plans and other non-public, proprietary and confidential information of the Company. Executive or his legal representatives, heirs or designated beneficiaries must return all Confidential Information within 15 days of the termination of Executive's employment for any reason. Executive acknowledges that this subsection (a) survives the termination of Executive's employment and is enforceable by the Company at any time as long as it remains in effect.

 

(b)     Non-competition. For a period of nine (9) months following the Separation Date and in lieu of any similar provision in his Employment Agreement, Executive agrees that, without the prior written consent of the Board of Directors of the Company, he will not (i) engage in or have any direct interest in, as an employee, officer, director, agent, subcontractor, consultant, security holder, partner, creditor or otherwise, any business in direct competition with the Company other than as a 10% or less equity stakeholder; (ii) cause or attempt to cause any person who is, or was at any time during the nine months immediately preceding the termination of Executive, an employee of the Company to leave the employment of the Company; or (iii) solicit, divert or take away, or attempt to take away, the business or patronage of any client, customer or account, or prospective client, customer or account, of the Company. For purposes of this subsection, a business will be deemed to be in competition with the Company if it is in the business of providing services to oil and/or gas production companies similar to those provided by the Company at the time of Executive's resignation. Executive acknowledges that this subsection survives the termination of Executive's employment and is enforceable by the Company at any time as long as it remains in effect.

 

(i)     Executive and the Company agree that this covenant not to compete is a reasonable covenant under the circumstances with respect to both scope and duration, and further agree that if in the opinion of any court of competent jurisdiction such restraint is not reasonable in any respect, such court will have the right, power and authority to excise or modify such provision or provisions of this covenant as to the court will appear not reasonable and to enforce the remainder of the covenant as so amended.

 

(ii)     Executive agrees that any breach of the covenants contained in this subsection (b) would irreparably injure the Company. Accordingly, Executive agrees that the Company may, in addition to pursuing any other remedies it may have in law and equity, obtain an injunction, without the posting of a bond or other security, against Executive from any court having jurisdiction over the matter restraining any further violation of this Agreement by Executive and cease making any payments otherwise required by this Agreement.

 

(c)     Intellectual Property. Executive acknowledges and agrees that all intellectual property created, acquired, adapted, modified or improved, in whole or in part, by or through the efforts of Executive during the course of his employment by the Company, including without limitation all copyrights, patents, trademarks, service marks, trade secrets, know-how or other work product in any way related to the Company's operations and activities, are works for hire and are owned exclusively by the Company, and Executive hereby disclaims any right or interest in or to any such intellectual property.

 

(d)     Company Property. Within seven days after the Separation Date, Executive agrees to return to the Company any and all records, files, notes, memoranda, reports, work product and similar items, and any manuals, drawings, sketches, plans, tape recordings, computer programs, disks, cassettes and other physical representations of any information, relating to the Company, or any of its affiliates, whether or not constituting Confidential Information. Executive also agrees to return to the Company any other property belonging to the Company no later than seven days after the Separation Date. Notwithstanding the preceding sentences, Executive may retain and will be assigned title to the pickup truck that he currently uses (2016 Dodge Ram 2500 4x4 Laramie 4dr Mega Cab 6.3 ft. SB Pickup, VIN 3C6UR5NL6GG125816). Executive acknowledges and agrees that retaining any copies of Confidential Information or other property belonging to the Company will be deemed to be the misappropriation of the property of the Company.

 

8.     Non-Disparagement.     The Executive and the Company (including persons speaking with the authority of the Company whether or not speaking on behalf of the Company) agree to represent the other Party in a positive light and not to disparage or in any way communicate to any person or entity any negative information or opinion concerning the Executive or the Company, its subsidiaries and affiliates, or any of their partners, members, family members, shareholders, officers, directors, executives or agents, or any of them. This provision shall not prohibit either Party from making any statements or taking any actions required by law, or reporting any actions or inactions either Party believes to be unlawful. This provision shall not be interpreted to require or encourage either Party to make any misrepresentations.

 

9.     General Release. Executive agrees that, in consideration of the Severance Benefits described in Section 2 above, he will, and hereby does, forever and irrevocably release and discharge Company, its officers, directors, executives, independent contractors, agents, affiliates, parents, subsidiaries, divisions, predecessors, executive benefit plans, purchasers, assigns, representatives, successors and successors in interest from any and all claims, actions, agreements causes of action, damages of any kind, demands, debts, defenses, grievances, obligations, contracts, complaints, promises, judgments, expenses, costs, attorneys’ fees, compensation, and liabilities, known or unknown, whatsoever which he now has, has had, or may have, whether the same be at law, in equity, or mixed, in any way arising from or relating to any act, occurrence, or transaction on or before the date of this Agreement, including without limitation his employment and separation of employment from Company. Executive expressly acknowledges that this General Release includes, but is not limited to, claims under any state, local or federal wage and hour law or wage payment or collection law, and claims of discrimination, retaliation or harassment based on age, race, color, sex, religion, handicap, disability, national origin, ancestry, citizenship, marital status, sexual orientation, genetic information or any other protected basis, or any other claim of employment discrimination, retaliation or harassment under the Family and Medical Leave Act (29 U.S.C. §§ 2601 et seq.), the Americans With Disabilities Act (42 U.S.C. §§ 12101 et seq.), the Rehabilitation Act of 1973 (29 U.S.C. §§ 701 et seq.), the Age Discrimination In Employment Act (including the Older Workers Benefit Protection Act) (29 U.S.C. §§ 626 et seq.), Title VII of the Civil Rights Acts of 1964 and 1991 as amended (42 U.S.C. §§ 2000e et seq.), the Executive Retirement Income Security Act (29 U.S.C. §§ 1001 et seq.), the Consolidated Omnibus Budget Reconciliation Act of 1985 (29 U.S.C. §§ 1161 et seq.), the Genetic Information Nondiscrimination Act of 2008 (42 U.S.C. §§ 2000ff et seq.), the Fair Labor Standards Act (29 U.S.C. §§ 201 et seq.), the Colorado Anti-Discrimination Act (C.R.S. § 24-34-402 et seq.), or any other federal, state, or local law, regulation or ordinance prohibiting employment discrimination or governing employment. The Parties agree that this General Release does not release (i) any claims arising out of any alleged breach of this Agreement, (ii) any claims that may result from, or arise as a result of, that certain Indemnification Agreement by and between Company and Executive dated February 21, 2014, which agreement Executive and Company agree remains in full force and effect, (iii) any rights or claims the Executive may have for indemnification under the Certificate of Incorporation of the Company, the bylaws of the Company or Delaware law, or (iv) any claims arising out of any alleged breach of the agreements establishing the options held by the Executive as described in Section 2(c), which such agreements the Executive and Company agree remain in full force and effect.

 

10.     Binding Effect. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective personal representatives, heirs, executors, administrators, successors, and assigns.

 

11.     Governing Law. The Parties agree that this Agreement and the rights and obligations hereunder shall be governed by, and construed in accordance with, the laws of the

State of Colorado regardless of any principles of conflicts of laws or choice of laws of any jurisdiction, except as to any matter which is governed by federal law.

 

12.     Venue. The Parties agree that any claimed violation of this Agreement must be submitted for determination in the state courts in the City and County of Denver, Colorado. In any litigation or arbitration of any dispute between the Parties, the prevailing Party shall be entitled to recover reasonable attorney fees and the other costs of the proceeding.

 

13.     Severability; Interpretation of Agreement. If any terms of the above provisions of this Agreement are found null, void or inoperative, for any reason, the remaining provisions will remain in full force and effect provided such interpretation maintains the agreement of the parties represented by this Agreement substantially in effect. The language of all parts of this Agreement shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the Parties.

 

14.     Time to Consider Agreement; Revocation. Executive understands that he has twenty-one (21) days from the date of his receipt of this Agreement to consider his decision to sign it with the release of claims under the Age Discrimination in Employment Act, as amended, contained in Section 9, and that he may unilaterally waive this period at his election. Executive’s signature on this Agreement constitutes an express waiver of the twenty-one (21) day period. The Parties agree that any revisions or modifications to this Agreement, whether material or immaterial, will not and did not restart this time period. Executive acknowledges that he may revoke this Agreement for up to and including seven (7) days after his execution of this Agreement; provided, however, that if Executive elects to revoke this Agreement, Executive will not be paid Severance Benefits he would otherwise be entitled to receive under Section 2(b) if the Agreement is not revoked .

 

15.     Full and Complete Agreement. The Parties agree and understand that no promises, covenants, representations, understandings or warranties have been made other than those expressly contained herein, and that this Agreement constitutes the entire agreement between the Parties. The Parties agree that this Agreement shall not be modified except in writing signed by each of the Parties hereto.

 

16.     Agreement Freely Entered. Each Party represents to the other Party that it carefully read this Agreement, that it understands all of the terms hereof, that it had a reasonable amount of time to consider its decision to sign this Agreement, that it has been advised in writing and has had the opportunity to discuss all the terms of this Agreement with an attorney of its choice, that in executing this Agreement it does not rely and has not relied upon any representation or statement made by any other Party nor the agents, representatives or attorneys of such Party with regard to the subject matter, basis, or effect of the Agreement, and that it enters into this Agreement voluntarily, of its own free will, without any duress and with knowledge of its meaning and effect. In entering into this Agreement on behalf of the Company, the signatory on behalf of the Company represents to Executive that he does so with all authority necessary to do so.

 

17.     Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original instrument, but all such counterparts together shall constitute but one agreement. Any Party’s delivery of an executed counterpart signature page by facsimile or email is as effective as executing and delivering this agreement in the presence of the other Party. No Party shall be bound until such time as both Parties have executed counterparts of this Agreement.

 

 

 

 

IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of April 27, 2018.

 

AUSTIN PEITZ                                                        ENSERVCO CORPORATION

 

 

 /s/ Austin Peitz                                                          By:   /s/ Ian Dickinson                                   

                                                                                    Title: President and Chief Executive OfficerExhibit 4.8

 

MANAGEMENT SERVICES AGREEMENT

 

Made and signed in Yavne, on the 24th of April, 2018

 

	
BETWEEN:

	
G. Willi-Food International Ltd.

	 	
public company no. 520043209

	 	
Of 4 Nahal Harif Street, Yavne

	 	
(hereafter: "the Company")

        On the one hand;

	
AND

	
Zvi V. & Co Company Ltd.

	 	
private company no. 512715970

	 	
Of 4 Nahal Harif Street, Yavne

	 	
(hereafter: "the Management Company")

On the other hand;

 

	Whereas:	
The Company is a public company engaged in import, marketing and distribution of food products;

	Whereas:	
The management Company is a private company owned by Mr. Zwi Williger, i.d. no. 53339305 (hereafter: “Mr. Williger”);

	Whereas:	
On 17.10.2017, the general meeting of the Company approved the terms of office of Mr. Williger as the joint Chairman of the Board of Directors of the Company, as described below, as from 13.8.17;

	Whereas:	
Mr. Williger wishes to serve as the joint Chairman of the Board of Directors through a management company, such that no employer-employee relationships will apply between Mr. Williger and the Company;

	Whereas:	
The parties wish to set out and regulate the terms of the engagement between them, all as described in this agreement below.

Now therefore, the parties agree, declare and warrant as follows:

 

	1.	
Recital

		1.1	
The recital to this agreement constitutes an integral part thereof.

		1.2	
The headings of the clauses to this agreement are for ease of reference only and shall not limit or affect the meaning or interpretation of the said clauses.

	2.	
The applicability of other documents

This agreement shall be subject to the Company’s compensation policy, as shall be from time to time.

 

	3.	
The purpose of the engagement and the scope of services

		3.1	
The Management Company shall provide to the Company management services through Mr. Zwi Williger, who will serve as a joint Chairman of the Board of Directors in the Company (hereafter: (“the Services”).

		3.2	
The Services shall be provided at the scope as required from time to time, which will not be less than the equivalent of 60% of a full-time position.

		3.3	
Notwithstanding the above, it is hereby clarified that the services and roles as part of which they will be rendered require the investment of strenuous work and long hours, and accordingly the Management Company and Mr. Williger undertake to provide the services at the scope of hours that will be required, including during additional and/or exceptional hours and days and/or on the weekly day of rest and/or during festivals, and they declare that there is no impediment to do so. The Management Company and Mr. Williger undertake to provide the services to the Company in accordance with the provisions of any law, as shall be in force over the course of the term of the agreement, in accordance with the provisions of this agreement and according to the instructions of the Company’s Board of Directors.

		3.4	
The Management Company and Mr. Williger shall be subject to supervision and audit of the Company’s Internal Auditor. The Management Company and Mr. Williger undertake to cooperate with the Internal Auditor and to comply with all of his requests.

	4.	
Declarations and undertakings of the Management Company and Mr. Williger

The Management Company and Mr. Williger hereby declare and undertake towards the bank, jointly and severally, as follows:

		4.1	
The Management Company is a limited liability company fully-owned and fully controlled by Mr. Williger and it shall remain so throughout the term of the agreement.

		4.2	
That provisions of this agreement shall also apply personally, jointly and severally, to Mr. Williger and accordingly, the provisions of this agreement apply to him as well.

		4.3	
That Mr. Williger has elected to provide the services to the Company through the Management Company, under his status as a self-employed person, and the meaning of this choice by Mr. Williger is that the Management Company and Mr. Williger, jointly and severally, shall not be entitled, now or in the future, to any rights arising from employer-employee relationship and that Mr. Williger has elected, without coercion or pressure, to provide the services to the Company through the Management Company and not as an employee of the Company, with all that this entails.

		4.4	
The Management Company is lawfully registered with all the relevant authorities as required by law, including with the Value Added Tax Authority, National Insurance and the Income Tax Authority.

 

		4.5	
The Management Company and Mr. Williger shall provide the services solely through Mr. Williger and will not endorse and/or assign the services or any part thereof to any other party. The Management Company and Mr. Williger undertake not to appoint or employ for the purpose of provision of the services any other person or legal entity except for Mr. Williger.

		4.6	
The Williger has the experience, knowledge and the professional capabilities to provide the services referred to in this agreement and to fulfil all his obligations and the obligations of the Management Company pursuant to this agreement.

		4.7	
To dedicate their skills, time and energy to fulfil their obligations pursuant to this agreement and to comply with the provisions of this agreement skillfully, dedicatedly, faithfully and in good faith, all in accordance with the directions of the Company’s Board of Directors as given from time to time, and subject to any procedure, standard or legal provision, to the satisfaction of the Company and in order to promote the Company’s interests.

		4.8	
That Mr. Williger is in good health and is medically fit to fulfil all the obligations of the Management Company and Mr. Williger, in accordance with the provisions of this agreement.

		4.9	
To act for the Company faithfully and diligently without preferring their interest over the interest of the Company. In providing the services, the Management Company and Mr. Williger will avoid situations of conflict of interest with the Company.

		4.10	
To report to the Company immediately and without delay of any matter or issue in which they have a personal interest and/or any matter that might cause conflict of interest with the provision of services to the Company, and in such a case, to act according to the instructions of the Company and its legal advisor.

		4.11	
That as of the date of this agreement there are no matters or issues that may cause conflict of interest under this agreement.

		4.12	
To act in good faith and reasonably, in a professional and skilled manner, as one may expect from senior office holders in the Company who hold managerial positions, in order to achieve the objective of the engagement and for the benefit of the Company.

		4.13	
That they know the extent of their duties in connection with the provision of the services to the Company, including the loyalty and fiduciary duties and the duty to act for the benefit of the Company, and that they are proficient with all the procedures, regulations and law provisions, which are relevant for the provision of the services.

		4.14	
That there is no legal and/or contractual and/or other prohibition, restriction or impediment on the performance of their obligations pursuant to this agreement and their engagement in this agreement and the fulfilment of their obligations thereunder do not breach any other contract or obligation they have to any third party, including breach of confidentiality and non-competing obligations.

 

		4.15	
That during the period of provision of services to the Company they will not engage in any manner whatsoever (whether directly or indirectly), whether with or without consideration, in any job or vocation which may constitute competition to the Company's business, whether as hired employees, self-employed persons, service providers who provide advisory services, or in any other way.

		4.16	
Not to receive any consideration and/or benefit in connection with the provision of the services from any entity and/or person with whom he will be in contact during and/or as part of and/or as a result of the provision of the services, including suppliers, clients and other service providers of the Company.

		4.17	
That they will use the Company’s equipment and property, including the means made available to them for the purpose of providing the services, solely for the purpose of providing the services, and they undertake not to make any other use of those equipment and property, except for reasonable private use by the manager.

		4.18	
That they are aware that the Company is a public company as defined in the Companies Law, 1999 (hereafter: “the Companies Law”) and therefore they are aware that they are subject to provisions and restrictions by virtue of the Securities Law, 1968 (hereafter: “the Securities Law”) and the Companies Law and the regulations promulgated thereunder, the guidelines of the Securities Authority and the Regulations of the Tel Aviv Stock Exchange Ltd. and its directives, as may be from time to time, including and without derogating from the generality of the above, as follows: (1) restrictions as to carrying out transactions with the securities of the Company or the parent company, including sale and purchase transactions; (2) restrictions on use or transfer of inside information, including restrictions regarding carrying out of transactions in the Company’s security or a different security for which the Company’s security is the underlying asset, in breach of the provisions of the Securities Law, where they should have known that they or the Company are in possession of inside information; (3) provisions regarding the date of filing a report to the Company regarding the holding of securities of the Company and/or the parent company, or the carrying out of transactions with those securities and the details of such transactions, and also provisions regarding the date of filing a report to the Company regarding the details of the contractor and changes therein, where the Company is required to disclose those details to the public.

		4.19	
That for the entire period of engagement under this agreement, the Management Company shall pay Mr. Williger his salary and other rights to which he is entitled, including social benefits and tax payments (national insurance, income tax and medical insurance) at least at the rate prescribed by law and/or personal agreement and/or expansion order, as the case may be.

		4.20	
That the relationship between the Company and the Management Company will be a relationship between a client and independent contractor and there will be no employer-employee relationship between the Management Company and the Company or between Mr. Williger and the Company, as described in detail in section 11 below.

 

	5.	
Declarations and undertakings of the Company

The Company hereby declares that its engagement in this agreement was lawfully approved by its competent bodies and that there is no restriction and/or prohibition and/or impediment according to the provisions of any agreement, whether in writing or orally, or under the provision of any law on its entering into this agreement and the performance of its obligations pursuant to this agreement.

	6.	
Monthly consideration

		6.1	
The Management Company shall be entitled to a consideration of NIS 60,000 per month plus VAT (hereafter: “the Consideration”) in respect of the provision of the services to the Company and the fulfilment of all Management Company’s obligations pursuant to this agreement.

		6.2	
The Consideration shall be paid until the 10th of every month, in respect of the services provided in the previous month and against a tax invoice issued as required by law.

		6.3	
In addition to the Consideration, the Management Company shall be entitled to payment of annual bonus and compensation in respect of participation in the meetings of the Board of Directors and/or its committees in accordance with the minimal rate set in the Companies Regulations (Rules Regarding Compensation and Expenses of an External Director), 2000, taking into account the scope of the Company’s shareholders’ equity, as shall be from time to time and in accordance with the provisions of the said regulations.

		6.4	
The Management Company and Mr. Williger alone shall bear any tax and/or any other payment of any type, if any, that will be levied on the monthly Consideration and/or the expenses, as described below.

		6.5	
The Management Company and Mr. Williger will not be entitled to receive any other payment and/or amount and/or consideration from the Company in respect of the provision of the services in addition to the Consideration, the expenses and the annual bonus as described in this agreement.

		6.6	
Mr. Williger will be included in the office holders’ insurance of the Company and its subsidiaries, as applicable to all other office holders and directors of the Company. Mr. Williger will also be entitled to exemption and indemnification pursuant to the letter of exemption and indemnification that was approved by the general meeting of the Company’s shareholders on 20.7.05 in respect of all other office holders and directors of the Company.

	7.	
Expenses

		7.1	
The Company shall make available to the Management Company a car to be used by Mr. Williger, at a value that will not exceed NIS 400 thousand and shall bear all expenses relating to the use of this car (excluding fines and parking tickets) and including the applicable tax expenses. If Mr. Williger asks for a car, the value of which is more than NIS 400 thousand, the Management Company shall pay the cost of the car in excess of NIS 400 thousand.

 

Insofar as the car is sold in the future, the Management Company shall receive a share of the consideration received in respect of the sale, in proportion to its participation in the cost of the car, if any.

		7.2	
Furthermore, the Management Company shall be entitled to reimbursement of reasonable expenses that it expensed in Israel or abroad in connection with the provision of the services to the Company (telephone expenses, subsistence and staying expenses, as applicable), as is the normal practice in the Company and in accordance with the Company’s compensation policy, as shall be from time to time.

	8.	
Annual bonus

		8.1	
If the Company’s annual consolidated operating profit amounts to NIS 15 million or more, before payment of bonuses to Company’s office holders, the Management Company shall be entitled to payment of a graduated annual bonus, as specified below:

		8.1.1	
2% of the operating profit of the Company before bonuses in respect of a total of NIS 10 million.

		8.1.2	
3% of the operating profit of the Company before bonuses in respect of the amount in excess of NIS 10 million and up to NIS 15 million.

		8.1.3	
4% of the operating profit of the Company before bonuses in respect of the amount in excess of NIS 15 million and up to NIS 20 million.

		8.1.4	
5% of operating profit of the Company before bonuses in respect of any amount in excess of NIS 20 million.

		8.2	
To remove any doubt, the annual bonus amount for each year will not exceed a total of NIS 720,000.

		8.3	
In the event that the services are diminished and/or reduced and/or terminated under the circumstance set out in section 10.2 below before the end of a calendar year, the annual bonus shall be paid in respect of the period during which the services were actually provided over the course of that calendar year.

		8.4	
In the event that the services are diminished and/or reduced and/or terminated under the circumstance set out in section 10.8 below, the Company may revoke the payment of the annual bonus, in whole or in part.

	9.	
Compensation and insurance

Mr. Williger shall be included in the professional liability insurance policy of office holders in the Company (as described above), in Israel and abroad, including the USA and Canada, under terms that are identical to the terms applied to all Company’s office holders. In addition, the Company will undertake to indemnify Mr. Williger in accordance with the letters of indemnifications that were adopted and/or will be adopted by the Company in respect to all of its office holders.

 

	10.	
Term and termination of the agreement

		10.1	
This agreement is effective as from 13.8.17 until it is terminated pursuant to the provisions of the agreement or the law.

		10.2	
Each of the parties shall be entitled to terminate the engagement between the parties at any given time without giving any reason, by giving a 90-day written advance notice (hereafter – “the Advance Notice Period”).

		10.3	
As from the second year of the engagement between the parties pursuant to this agreement, the Advance Notice Period that the Company will be subject to will be 120 days.

		10.4	
In addition, in the event of termination of the engagement between the parties by the Company under circumstance other than those specified in section 10.8 below, and provided that the engagement under this agreement has lasted more than one full year, the Management Company shall be entitled to payment of retirement bonus at an amount equal to six times the monthly consideration, and also to payment of the consideration for four months from the date of the termination of the engagement between the parties.

		10.5	
During the Advance Notice Period, the Management Company shall continue to provide the services to the Company in order to ensure the continued normal activities of the Company.

		10.6	
The Company may, at its own discretion, waive the provision of the services during some or all of the Advance Notice Period, and in such a case the Company shall pay to the Management Company the Consideration and all other rights specified in this agreement, in respect of the period for which it waived the provision of services.

		10.7	
If the Management Company fails to meet its obligation to give advance notice to the Company as provided above, the Management Company shall pay the Company an agreed compensation at an amount equal to the consideration that it would have received in respect of the Advance Notice Period which it failed to announce. The Company may deduct and/or offset the amount of the said agreed compensation from any payment it will be required to pay the Management Company.

		10.8	
Upon the fulfilment of at least one of the conditions set out below, the Company will be entitled to terminate this agreement with immediate effect, without being required to give advance notice or pay for an advance notice period, without detracting from any remedy to which the Company will be entitled pursuant to any law and/or agreement:

		10.8.1	
The Management Company and/or Mr. Williger were convicted of a criminal offense and/or a flagrant offense;

		10.8.2	
The Management Company and/or Mr. Williger have fundamentally breached a fundamental obligation pursuant to this agreement and did not rectify the said breach within 30 days from the day on which they received written notice to that effect from the Company.

 

		10.8.3	
Mr. Williger was declared bankrupt;

		10.8.4	
If a resolution is taken against the Management Company in an application for liquidation and/or appointment of a preliminary temporary liquidator, receiver, special manager, or an application for suspension of proceedings, or receiving order, or the commencement of rehabilitation procedures.

		10.8.5	
In the event that the Management will be prevented from providing the services due to the Mr. Williger's permanent incapacity and/or permanent loss of work capacity.

		10.8.6	
Under circumstances in which, had Mr. Williger been an employee of the Company, it would have had the right to terminate his employment while revoking some or all of his severance pay.

		10.9	
No later than 5 business days after the date of the termination of the provision of the services for any reason whatsoever, the Management Company will deliver to the Company all the documents, information, other confidential materials, professional and/or business material and/or photocopies and/or any other copies thereof, as well as any other materials, that the Company or Mr. Williger received or prepared in connection with the provision of the services until they were discontinued; the Management Company and Mr. Williger shall not retain any such information and/or materials or any copies of photocopies thereof.

		10.10	
In the event that the engagement with the Management Company is terminated for any reason whatsoever, the Company shall pay to the Management Company all the amounts it was entitled to receive under this agreement through the date of termination of the agreement; the Management Company will not be entitled to any further payments and/or compensation in respect of the termination of the engagement.

	11.	
The nature of the relationship between the parties

		11.1	
The Company, the Management Company and Mr. Williger, declare and approve, jointly and severally, that the services pursuant to this agreement shall be provided to the Company under Mr. Williger’s status as a self-employed person and that there is no employer-employee relationship between the Company and/or anyone acting on its behalf and Mr. Williger, nor will there be such a relationship in the future. The Company and/or anyone acting on its behalf are not liable towards Mr. Williger in connection with any duty, responsibility or liability, which an employer has towards its employees, including in relation to severance pay and/or any payment and/or right that an employee is entitled to under any law and/or practice.

 

		11.2	
The Consideration and all other amounts payable in respect of the provision of the services specified in this agreement were determined, among other things, based on the assumption that the Management Company and Mr. Williger and/or any of them are not employees of the Company. Therefore, it is expressly agreed that the Management Company and/or Mr. Williger shall indemnify the Company immediately upon first demand, for any lawsuit, if any, filed by Mr. Williger and/or any of them and/or anyone acting on their behalf against the Company in connection with employer-employee relationship; indemnity will include the full amount specified in the lawsuit with the addition of interest, linkage differences and any expense incurred by the Company in respect thereof; Mr. Williger shall be precluded from raising any claims against the Company with regard to any demand that the Company makes against him in connection with such a lawsuit.

		11.3	
Without derogating from the aforesaid, if a competent authority, including a court (and an arbitrator or a mediator) decides that despite of the agreement between the parties there were employer-employee relationships between Mr. Williger and the Company and/or a Company under its control and/or a related company thereof, then the Consideration in respect of the provision of the services shall amount to NIS 40 thousand in respect of 60% of a full-time position; this provision will apply with retroactive effect as from the date of commencement of the engagement as specified in section 10.1 above, without the Management Company and/or Mr. Williger raising any claims in connection with the aforesaid. In such a case, the parties will settle accounts as required from the determination of the nature of the relationship between them; and accordingly, all amounts that were paid in excess of the amount specified above in gross terms shall be considered as contribution towards social benefits, other benefits and rights pertaining to employer-employee relationship.

	12.	
Confidentiality and non-competition

		12.1	
The Management and Mr. Williger declare, warrant and approve, jointly and severally, that they are aware that all the information that they will receive due to and/or in the process of the provision of the services, including information prepared by them and which pertains to the Company and/or its businesses and/or its clients and/or its matters and/or its activity and/or transactions, including potential transactions, the Company’s clients, work procedures, clients list, supplier list and information relating thereto, Company’s shareholders and/or its employees, work methods, methodology, work relations ,etc. (hereafter –“the Information”), is confidential and shall remain the exclusive property of the Company and can only be used and brought to the attention of the Management Company and Mr. Williger in connection with the provision of the services pursuant to this agreement.

		12.1	
The Management Company and Mr. Williger undertake, jointly and severally, to use the Information only for the purpose of providing the services to the Company and to maintain full and complete confidentiality regarding the Information, not disclose the Information to any third party and/or to publish it, whether directly or through others, and not to use it for any purpose other than the provision of the services to the Company.

 

		12.3	
The Management Company and Mr. Williger undertake, jointly and severally, that they will not remove from the Company’s offices any equipment, parts of equipment, documents, copies of documents, videos, photographic films, recording tapes, software, programs, plans, drawings, working papers that belong to the Company, it clients and/or to other persons, bodies and/or entities related to the Company in any way and/or to copy and/or to otherwise duplicate, including by way of magnetic duplication, such documents or information, unless they do so for the purpose of providing the services to the Company and/or in accordance with its instructions.

		12.4	
Without detracting from the above, the Management Company and Mr. Williger undertake, jointly and severally, that during the term of the agreement they will not address and/or contact and/or engage and/or provide services, whether directly or indirectly, to Company’s present and former clients and/or suppliers and/or its employees and/or anyone to whom the Company rendered services and will not accept any approaches or proposals they receive therefrom.

The provisions of this section shall also apply to business opportunities and/or business activities in the field of the Company’s activities and accordingly, the Management Company and Mr. Williger, jointly and severally, will refrain from communicating information regarding such opportunities or activities to any third party and will refrain from using those opportunities or activities for their own benefit.

		12.5	
The Management Company and Mr. Williger’s obligations regarding confidentiality and non-competition as set out above, shall apply both in relation to the Company and in relation to its related companies, as described above.

	13.	
Applicable law

This Agreement shall be governed by and construed solely in accordance with the applicable laws of the state of Israel. All parties irrevocably agree that the competent courts of Tel Aviv-Yafo shall have exclusive jurisdiction in any matter relating to this agreement and no other courts in any other city and/or country shall have jurisdiction to hear any matter arising from this agreement, related thereto or connected therewith.

	14.	
Sundry

		14.1	
The parties undertake to act mutually and in good faith to achieve the correct, just and efficient execution of this agreement, and for that purpose the parties undertake to sign any document and to present themselves before any authority, as required.

		14.2	
Any modification, amendment and/or addition to the agreement shall only become effective and considered as executed if they are agreed to in writing and signed by both parties.

 

		14.3	
No conduct by either party shall be deemed to be a waiver of any of its rights under this agreement and/or under any law, or as waiver or acceptance of any breach or non-fulfillment of the terms of the agreement by the other party or as extension, deferral, modification, revocation or addition of any condition, unless agreed to expressly and in writing.

		14.4	
For purposes of this agreement, the addresses of the parties shall be the addresses set by the parties in the recital to this agreement.

		14.5	
This Agreement constitutes the entire agreement and understanding between the parties to this agreement regarding the subjects discussed therein and it supersedes any representation, agreement, negotiation, practice, letter of understanding, memorandum of principle, proposal, plan, summary of discussion, letter of intent and an undertaking, whether written or oral, that had existed or exchanged between the parties regarding the said subjects prior to signing this agreement.

 

In witness whereof, the parties hereto affix their signatures

  

	/s/ Michael Luboschitz      /s/ Amir Kaplan	 	/s/ Zwi Williger 
	
The Company

	 	
The Management Company

	 	 	 
	
Approval by Mr. Williger

 

I, the undersigned, Zwi Williger, i.d. no. 53339305, hereby undertake to comply with all the provisions of this agreement and particularly with all the provisions of a personal nature, including, but not only, the provisions of sections 3, 4, 11 and 12 and their subsections.

	 	 	 
	 	 	/s/ Zwi Williger 
	 	 	
Mr. Zwi Williger

 

MANAGEMENT SERVICES AGREEMENT

 

Made and signed in Yavne, on the 24th of April, 2018

  

	
BETWEEN:

	
G. Willi-Food International Ltd.

	 	
public company no. 520043209

	 	
Of 4 Nahal Harif Street, Yavne

	 	
(hereafter: "the Company")

        On the one hand;

	
AND

	
Yossi Willi Management and Investments Ltd.

	 	
private company no. 512416033

	 	
Of 76 Kaplan Street, Herzliya

	 	
(hereafter: "the Management Company")

       On the other hand;

  

	Whereas:	
The Company is a public company engaged in import, marketing and distribution of food products;

	Whereas:	
The management Company is a private company owned by Mr. Joseph Williger, i.d. no. 54248307 (hereafter: “Mr. Williger”);

	Whereas:	
On 17.10.2017, the general meeting of the Company approved the terms of office of Mr. Williger as the joint Chairman of the Board of Directors of the Company, as described below, as from 13.8.17;

	Whereas:	
Mr. Williger wishes to serve as the joint Chairman of the Board of Directors through a management company, such that no employer-employee relationships will apply between Mr. Williger and the Company;

	Whereas:	
The parties wish to set out and regulate the terms of the engagement between them, all as described in this agreement below.

Now therefore, the parties agree, declare and warrant as follows:

 

	1.	
Recital

		1.1	
The recital to this agreement constitutes an integral part thereof.

		1.2	
The headings of the clauses to this agreement are for ease of reference only and shall not limit or affect the meaning or interpretation of the said clauses.

	2.	
The applicability of other documents

This agreement shall be subject to the Company’s compensation policy, as shall be from time to time.

 

	3.	
The purpose of the engagement and the scope of services

		3.1	
The Management Company shall provide to the Company management services through Mr. Joseph Williger, who will serve as a joint Chairman of the Board of Directors in the Company (hereafter: (“the Services”).

		3.2	
The Services shall be provided at the scope as required from time to time, which will not be less than the equivalent of 60% of a full-time position.

		3.3	
Notwithstanding the above, it is hereby clarified that the services and roles as part of which they will be rendered require the investment of strenuous work and long hours, and accordingly the Management Company and Mr. Williger undertake to provide the services at the scope of hours that will be required, including during additional and/or exceptional hours and days and/or on the weekly day of rest and/or during festivals, and they declare that there is no impediment to do so. The Management Company and Mr. Williger undertake to provide the services to the Company in accordance with the provisions of any law, as shall be in force over the course of the term of the agreement, in accordance with the provisions of this agreement and according to the instructions of the Company’s Board of Directors.

		3.4	
The Management Company and Mr. Williger shall be subject to supervision and audit of the Company’s Internal Auditor. The Management Company and Mr. Williger undertake to cooperate with the Internal Auditor and to comply with all of his requests.

	4.	
Declarations and undertakings of the Management Company and Mr. Williger

The Management Company and Mr. Williger hereby declare and undertake towards the bank, jointly and severally, as follows:

		4.1	
The Management Company is a limited liability company fully-owned and fully controlled by Mr. Williger and it shall remain so throughout the term of the agreement.

		4.2	
That provisions of this agreement shall also apply personally, jointly and severally, to Mr. Williger and accordingly, the provisions of this agreement apply to him as well.

		4.3	
That Mr. Williger has elected to provide the services to the Company through the Management Company, under his status as a self-employed person, and the meaning of this choice by Mr. Williger is that the Management Company and Mr. Williger, jointly and severally, shall not be entitled, now or in the future, to any rights arising from employer-employee relationship and that Mr. Williger has elected, without coercion or pressure, to provide the services to the Company through the Management Company and not as an employee of the Company, with all that this entails.

		4.4	
The Management Company is lawfully registered with all the relevant authorities as required by law, including with the Value Added Tax Authority, National Insurance and the Income Tax Authority.

 

		4.5	
The Management Company and Mr. Williger shall provide the services solely through Mr. Williger and will not endorse and/or assign the services or any part thereof to any other party. The Management Company and Mr. Williger undertake not to appoint or employ for the purpose of provision of the services any other person or legal entity except for Mr. Williger.

		4.6	
The Williger has the experience, knowledge and the professional capabilities to provide the services referred to in this agreement and to fulfil all his obligations and the obligations of the Management Company pursuant to this agreement.

		4.7	
To dedicate their skills, time and energy to fulfil their obligations pursuant to this agreement and to comply with the provisions of this agreement skillfully, dedicatedly, faithfully and in good faith, all in accordance with the directions of the Company’s Board of Directors as given from time to time, and subject to any procedure, standard or legal provision, to the satisfaction of the Company and in order to promote the Company’s interests.

		4.8	
That Mr. Williger is in good health and is medically fit to fulfil all the obligations of the Management Company and Mr. Williger, in accordance with the provisions of this agreement.

		4.9	
To act for the Company faithfully and diligently without preferring their interest over the interest of the Company. In providing the services, the Management Company and Mr. Williger will avoid situations of conflict of interest with the Company.

		4.10	
To report to the Company immediately and without delay of any matter or issue in which they have a personal interest and/or any matter that might cause conflict of interest with the provision of services to the Company, and in such a case, to act according to the instructions of the Company and its legal advisor.

		4.11	
That as of the date of this agreement there are no matters or issues that may cause conflict of interest under this agreement.

		4.12	
To act in good faith and reasonably, in a professional and skilled manner, as one may expect from senior office holders in the Company who hold managerial positions, in order to achieve the objective of the engagement and for the benefit of the Company.

		4.13	
That they know the extent of their duties in connection with the provision of the services to the Company, including the loyalty and fiduciary duties and the duty to act for the benefit of the Company, and that they are proficient with all the procedures, regulations and law provisions, which are relevant for the provision of the services.

		4.14	
That there is no legal and/or contractual and/or other prohibition, restriction or impediment on the performance of their obligations pursuant to this agreement and their engagement in this agreement and the fulfilment of their obligations thereunder do not breach any other contract or obligation they have to any third party, including breach of confidentiality and non-competing obligations.

 

		4.15	
That during the period of provision of services to the Company they will not engage in any manner whatsoever (whether directly or indirectly), whether with or without consideration, in any job or vocation which may constitute competition to the Company's business, whether as hired employees, self-employed persons, service providers who provide advisory services, or in any other way.

		4.16	
Not to receive any consideration and/or benefit in connection with the provision of the services from any entity and/or person with whom he will be in contact during and/or as part of and/or as a result of the provision of the services, including suppliers, clients and other service providers of the Company.

		4.17	
That they will use the Company’s equipment and property, including the means made available to them for the purpose of providing the services, solely for the purpose of providing the services, and they undertake not to make any other use of those equipment and property, except for reasonable private use by the manager.

		4.18	
That they are aware that the Company is a public company as defined in the Companies Law, 1999 (hereafter: “the Companies Law”) and therefore they are aware that they are subject to provisions and restrictions by virtue of the Securities Law, 1968 (hereafter: “the Securities Law”) and the Companies Law and the regulations promulgated thereunder, the guidelines of the Securities Authority and the Regulations of the Tel Aviv Stock Exchange Ltd. and its directives, as may be from time to time, including and without derogating from the generality of the above, as follows: (1) restrictions as to carrying out transactions with the securities of the Company or the parent company, including sale and purchase transactions; (2) restrictions on use or transfer of inside information, including restrictions regarding carrying out of transactions in the Company’s security or a different security for which the Company’s security is the underlying asset, in breach of the provisions of the Securities Law, where they should have known that they or the Company are in possession of inside information; (3) provisions regarding the date of filing a report to the Company regarding the holding of securities of the Company and/or the parent company, or the carrying out of transactions with those securities and the details of such transactions, and also provisions regarding the date of filing a report to the Company regarding the details of the contractor and changes therein, where the Company is required to disclose those details to the public.

		4.19	
That for the entire period of engagement under this agreement, the Management Company shall pay Mr. Williger his salary and other rights to which he is entitled, including social benefits and tax payments (national insurance, income tax and medical insurance) at least at the rate prescribed by law and/or personal agreement and/or expansion order, as the case may be.

		4.20	
That the relationship between the Company and the Management Company will be a relationship between a client and independent contractor and there will be no employer-employee relationship between the Management Company and the Company or between Mr. Williger and the Company, as described in detail in section 11 below.

 

	5.	
Declarations and undertakings of the Company

The Company hereby declares that its engagement in this agreement was lawfully approved by its competent bodies and that there is no restriction and/or prohibition and/or impediment according to the provisions of any agreement, whether in writing or orally, or under the provision of any law on its entering into this agreement and the performance of its obligations pursuant to this agreement.

	6.	
Monthly consideration

		6.1	
The Management Company shall be entitled to a consideration of NIS 60,000 per month plus VAT (hereafter: “the Consideration”) in respect of the provision of the services to the Company and the fulfilment of all Management Company’s obligations pursuant to this agreement.

		6.2	
The Consideration shall be paid until the 10th of every month, in respect of the services provided in the previous month and against a tax invoice issued as required by law.

		6.3	
In addition to the Consideration, the Management Company shall be entitled to payment of annual bonus and compensation in respect of participation in the meetings of the Board of Directors and/or its committees in accordance with the minimal rate set in the Companies Regulations (Rules Regarding Compensation and Expenses of an External Director), 2000, taking into account the scope of the Company’s shareholders’ equity, as shall be from time to time and in accordance with the provisions of the said regulations.

		6.4	
The Management Company and Mr. Williger alone shall bear any tax and/or any other payment of any type, if any, that will be levied on the monthly Consideration and/or the expenses, as described below.

		6.5	
The Management Company and Mr. Williger will not be entitled to receive any other payment and/or amount and/or consideration from the Company in respect of the provision of the services in addition to the Consideration, the expenses and the annual bonus as described in this agreement.

		6.6	
Mr. Williger will be included in the office holders’ insurance of the Company and its subsidiaries, as applicable to all other office holders and directors of the Company. Mr. Williger will also be entitled to exemption and indemnification pursuant to the letter of exemption and indemnification that was approved by the general meeting of the Company’s shareholders on 20.7.05 in respect of all other office holders and directors of the Company.

	7.	
Expenses

		7.1	
The Company shall make available to the Management Company a car to be used by Mr. Williger, at a value that will not exceed NIS 400 thousand and shall bear all expenses relating to the use of this car (excluding fines and parking tickets) and including the applicable tax expenses. If Mr. Williger asks for a car, the value of which is more than NIS 400 thousand, the Management Company shall pay the cost of the car in excess of NIS 400 thousand.

 

Insofar as the car is sold in the future, the Management Company shall receive a share of the consideration received in respect of the sale, in proportion to its participation in the cost of the car, if any.

		7.2	
Furthermore, the Management Company shall be entitled to reimbursement of reasonable expenses that it expensed in Israel or abroad in connection with the provision of the services to the Company (telephone expenses, subsistence and staying expenses, as applicable), as is the normal practice in the Company and in accordance with the Company’s compensation policy, as shall be from time to time.

	8.	
Annual bonus

		8.1	
If the Company’s annual consolidated operating profit amounts to NIS 15 million or more, before payment of bonuses to Company’s office holders, the Management Company shall be entitled to payment of a graduated annual bonus, as specified below:

		8.1.1	
2% of the operating profit of the Company before bonuses in respect of a total of NIS 10 million.

		8.1.2	
3% of the operating profit of the Company before bonuses in respect of the amount in excess of NIS 10 million and up to NIS 15 million.

		8.1.3	
4% of the operating profit of the Company before bonuses in respect of the amount in excess of NIS 15 million and up to NIS 20 million.

		8.1.4	
5% of operating profit of the Company before bonuses in respect of any amount in excess of NIS 20 million.

		8.2	
To remove any doubt, the annual bonus amount for each year will not exceed a total of NIS 720,000.

		8.3	
In the event that the services are diminished and/or reduced and/or terminated under the circumstance set out in section 10.2 below before the end of a calendar year, the annual bonus shall be paid in respect of the period during which the services were actually provided over the course of that calendar year.

		8.4	
In the event that the services are diminished and/or reduced and/or terminated under the circumstance set out in section 10.8 below, the Company may revoke the payment of the annual bonus, in whole or in part.

	9.	
Compensation and insurance

Mr. Williger shall be included in the professional liability insurance policy of office holders in the Company (as described above), in Israel and abroad, including the USA and Canada, under terms that are identical to the terms applied to all Company’s office holders. In addition, the Company will undertake to indemnify Mr. Williger in accordance with the letters of indemnifications that were adopted and/or will be adopted by the Company in respect to all of its office holders.

 

	10.	
Term and termination of the agreement

		10.1	
This agreement is effective as from 13.8.17 until it is terminated pursuant to the provisions of the agreement or the law.

		10.2	
Each of the parties shall be entitled to terminate the engagement between the parties at any given time without giving any reason, by giving a 90-day written advance notice (hereafter – “the Advance Notice Period”).

		10.3	
As from the second year of the engagement between the parties pursuant to this agreement, the Advance Notice Period that the Company will be subject to will be 120 days.

		10.4	
In addition, in the event of termination of the engagement between the parties by the Company under circumstance other than those specified in section 10.8 below, and provided that the engagement under this agreement has lasted more than one full year, the Management Company shall be entitled to payment of retirement bonus at an amount equal to six times the monthly consideration, and also to payment of the consideration for four months from the date of the termination of the engagement between the parties.

		10.5	
During the Advance Notice Period, the Management Company shall continue to provide the services to the Company in order to ensure the continued normal activities of the Company.

		10.6	
The Company may, at its own discretion, waive the provision of the services during some or all of the Advance Notice Period, and in such a case the Company shall pay to the Management Company the Consideration and all other rights specified in this agreement, in respect of the period for which it waived the provision of services.

		10.7	
If the Management Company fails to meet its obligation to give advance notice to the Company as provided above, the Management Company shall pay the Company an agreed compensation at an amount equal to the consideration that it would have received in respect of the Advance Notice Period which it failed to announce. The Company may deduct and/or offset the amount of the said agreed compensation from any payment it will be required to pay the Management Company.

		10.8	
Upon the fulfilment of at least one of the conditions set out below, the Company will be entitled to terminate this agreement with immediate effect, without being required to give advance notice or pay for an advance notice period, without detracting from any remedy to which the Company will be entitled pursuant to any law and/or agreement:

		10.8.1	
The Management Company and/or Mr. Williger were convicted of a criminal offense and/or a flagrant offense;

		10.8.2	
The Management Company and/or Mr. Williger have fundamentally breached a fundamental obligation pursuant to this agreement and did not rectify the said breach within 30 days from the day on which they received written notice to that effect from the Company.

 

		10.8.3	
Mr. Williger was declared bankrupt;

		10.8.4	
If a resolution is taken against the Management Company in an application for liquidation and/or appointment of a preliminary temporary liquidator, receiver, special manager, or an application for suspension of proceedings, or receiving order, or the commencement of rehabilitation procedures.

		10.8.5	
In the event that the Management will be prevented from providing the services due to the Mr. Williger's permanent incapacity and/or permanent loss of work capacity.

		10.8.6	
Under circumstances in which, had Mr. Williger been an employee of the Company, it would have had the right to terminate his employment while revoking some or all of his severance pay.

		10.9	
No later than 5 business days after the date of the termination of the provision of the services for any reason whatsoever, the Management Company will deliver to the Company all the documents, information, other confidential materials, professional and/or business material and/or photocopies and/or any other copies thereof, as well as any other materials, that the Company or Mr. Williger received or prepared in connection with the provision of the services until they were discontinued; the Management Company and Mr. Williger shall not retain any such information and/or materials or any copies of photocopies thereof.

		10.10	
In the event that the engagement with the Management Company is terminated for any reason whatsoever, the Company shall pay to the Management Company all the amounts it was entitled to receive under this agreement through the date of termination of the agreement; the Management Company will not be entitled to any further payments and/or compensation in respect of the termination of the engagement.

	11.	
The nature of the relationship between the parties

		11.1	
The Company, the Management Company and Mr. Williger, declare and approve, jointly and severally, that the services pursuant to this agreement shall be provided to the Company under Mr. Williger’s status as a self-employed person and that there is no employer-employee relationship between the Company and/or anyone acting on its behalf and Mr. Williger, nor will there be such a relationship in the future. The Company and/or anyone acting on its behalf are not liable towards Mr. Williger in connection with any duty, responsibility or liability, which an employer has towards its employees, including in relation to severance pay and/or any payment and/or right that an employee is entitled to under any law and/or practice.

 

		11.2	
The Consideration and all other amounts payable in respect of the provision of the services specified in this agreement were determined, among other things, based on the assumption that the Management Company and Mr. Williger and/or any of them are not employees of the Company. Therefore, it is expressly agreed that the Management Company and/or Mr. Williger shall indemnify the Company immediately upon first demand, for any lawsuit, if any, filed by Mr. Williger and/or any of them and/or anyone acting on their behalf against the Company in connection with employer-employee relationship; indemnity will include the full amount specified in the lawsuit with the addition of interest, linkage differences and any expense incurred by the Company in respect thereof; Mr. Williger shall be precluded from raising any claims against the Company with regard to any demand that the Company makes against him in connection with such a lawsuit.

		11.3	
Without derogating from the aforesaid, if a competent authority, including a court (and an arbitrator or a mediator) decides that despite of the agreement between the parties there were employer-employee relationships between Mr. Williger and the Company and/or a Company under its control and/or a related company thereof, then the Consideration in respect of the provision of the services shall amount to NIS 40 thousand in respect of 60% of a full-time position; this provision will apply with retroactive effect as from the date of commencement of the engagement as specified in section 10.1 above, without the Management Company and/or Mr. Williger raising any claims in connection with the aforesaid. In such a case, the parties will settle accounts as required from the determination of the nature of the relationship between them; and accordingly, all amounts that were paid in excess of the amount specified above in gross terms shall be considered as contribution towards social benefits, other benefits and rights pertaining to employer-employee relationship.

	12.	
Confidentiality and non-competition

		12.1	
The Management and Mr. Williger declare, warrant and approve, jointly and severally, that they are aware that all the information that they will receive due to and/or in the process of the provision of the services, including information prepared by them and which pertains to the Company and/or its businesses and/or its clients and/or its matters and/or its activity and/or transactions, including potential transactions, the Company’s clients, work procedures, clients list, supplier list and information relating thereto, Company’s shareholders and/or its employees, work methods, methodology, work relations ,etc. (hereafter –“the Information”), is confidential and shall remain the exclusive property of the Company and can only be used and brought to the attention of the Management Company and Mr. Williger in connection with the provision of the services pursuant to this agreement.

		12.1	
The Management Company and Mr. Williger undertake, jointly and severally, to use the Information only for the purpose of providing the services to the Company and to maintain full and complete confidentiality regarding the Information, not disclose the Information to any third party and/or to publish it, whether directly or through others, and not to use it for any purpose other than the provision of the services to the Company.

 

		12.3	
The Management Company and Mr. Williger undertake, jointly and severally, that they will not remove from the Company’s offices any equipment, parts of equipment, documents, copies of documents, videos, photographic films, recording tapes, software, programs, plans, drawings, working papers that belong to the Company, it clients and/or to other persons, bodies and/or entities related to the Company in any way and/or to copy and/or to otherwise duplicate, including by way of magnetic duplication, such documents or information, unless they do so for the purpose of providing the services to the Company and/or in accordance with its instructions.

		12.4	
Without detracting from the above, the Management Company and Mr. Williger undertake, jointly and severally, that during the term of the agreement they will not address and/or contact and/or engage and/or provide services, whether directly or indirectly, to Company’s present and former clients and/or suppliers and/or its employees and/or anyone to whom the Company rendered services and will not accept any approaches or proposals they receive therefrom.

The provisions of this section shall also apply to business opportunities and/or business activities in the field of the Company’s activities and accordingly, the Management Company and Mr. Williger, jointly and severally, will refrain from communicating information regarding such opportunities or activities to any third party and will refrain from using those opportunities or activities for their own benefit.

		12.5	
The Management Company and Mr. Williger’s obligations regarding confidentiality and non-competition as set out above, shall apply both in relation to the Company and in relation to its related companies, as described above.

	13.	
Applicable law

This Agreement shall be governed by and construed solely in accordance with the applicable laws of the state of Israel. All parties irrevocably agree that the competent courts of Tel Aviv-Yafo shall have exclusive jurisdiction in any matter relating to this agreement and no other courts in any other city and/or country shall have jurisdiction to hear any matter arising from this agreement, related thereto or connected therewith.

	14.	
Sundry

		14.1	
The parties undertake to act mutually and in good faith to achieve the correct, just and efficient execution of this agreement, and for that purpose the parties undertake to sign any document and to present themselves before any authority, as required.

		14.2	
Any modification, amendment and/or addition to the agreement shall only become effective and considered as executed if they are agreed to in writing and signed by both parties.

  

		14.3	
No conduct by either party shall be deemed to be a waiver of any of its rights under this agreement and/or under any law, or as waiver or acceptance of any breach or non-fulfillment of the terms of the agreement by the other party or as extension, deferral, modification, revocation or addition of any condition, unless agreed to expressly and in writing.

		14.4	
For purposes of this agreement, the addresses of the parties shall be the addresses set by the parties in the recital to this agreement.

		14.5	
This Agreement constitutes the entire agreement and understanding between the parties to this agreement regarding the subjects discussed therein and it supersedes any representation, agreement, negotiation, practice, letter of understanding, memorandum of principle, proposal, plan, summary of discussion, letter of intent and an undertaking, whether written or oral, that had existed or exchanged between the parties regarding the said subjects prior to signing this agreement.

 

In witness whereof, the parties hereto affix their signatures

  

	/s/ Michael Luboschitz      /s/ Amir Kaplan	 	/s/ Joseph Williger
	
The Company

	 	
The Management Company

	 	 	 
	
Approval by Mr. Williger

 

I, the undersigned, Joseph Williger, i.d. no. 54248307, hereby undertake to comply with all the provisions of this agreement and particularly with all the provisions of a personal nature, including, but not only, the provisions of sections 3, 4, 11 and 12 and their subsections.

	 	 	 
	 	 	/s/ Joseph Williger
	 	 	
Mr. Joseph Williger

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