Document:

Unassociated Document

    EMPLOYMENT
      AGREEMENT

    

    Employment
      Agreement executed on August 19, 2008 effective July 1, 2008 by and between
      Emvelco Corp. (the "Company"), a Delaware corporation with an address at 10990
      Wilshire Blvd., Suite 1220, Los Angeles, California and Mike M. Mustafoglu,
      with
      a mailing address at 2934 Beverly Glen Circle, #276, Bel Air, CA 90077 (the
      “Employee”).

    

    W
      I T N E
      S S E T H:

    

    A. The
      Company desires to engage the services of the Employee for purposes of assisting
      the Company in managing its oil and gas activities.

    

    B. Employee
      is desirous of performing such services on behalf of the Company and desires
      to
      be engaged and retained by the Company upon the terms and conditions provided
      for herein.

    

    NOW,
      THEREFORE, in consideration of the recitals, promises and conditions in this
      Agreement, the Employee and the Company agree as follows:

    

    1. Employment.
      The
      Company hereby retains the Employee on a non- exclusive but priority basis
      and
      the Employee accepts such retention for managing the Company’s oil and gas
      exploration, drilling and production activities. Employee shall retain the
      title
      of the Chairman of the Board.

    

    2. Term.
      The
      term of this Consulting Agreement shall be for a five (5) year period commencing
      on the date hereof.

    

    
      
         

      

      
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    3. COMPENSATION;
      OTHER BENEFITS

    

    
      	 	
              (A)

            	
              Employment
                Fee.
                As compensation for his services hereunder this Agreement, the Company
                shall pay Employee, during the Employment Period, an initial annual
                base
                salary equal to $240,000 payable in equal monthly installments.
                

            

    

    

    
      	 	
              (B)

            	
              Signing
                Bonus.
                Employee shall be granted signing Bonus in form of cashless warrants
                to
                purchase shares of common stock of the Company. The Company will
                issue to
                the Employee 10,000,000 cashless warrants to purchase 10,000,000
                shares of
                the Company’s common stock (the “Bonus Shares”) at an exercise price of
                fifty cents ($0.50) or fifty percent (50%) of the 20 day average
                prior to
                exercise notice, whichever is less. The cashless warrants may be
                assigned
                by the Employee. The Bonus Shares shall be deposited in escrow with
                Robin
                Ann Gorelick, the Company Secretary, to be released to Employee,
                or his
                designee, at the rate of 2,000,000 shares of common stock, or 20%
                of the
                Bonus Shares, upon each anniversary of the execution of this Agreement.
                Regardless of the fact that the Bonus Shares have been deposited
                in
                escrow, Employee will be considered the beneficiary owner of the
                Bonus
                Shares from the date of issuance. However, in the event that the
                Employee
                is terminated pursuant to Section 10 of this Agreement, then Employee
                shall provide the required paperwork in order to have the Bonus Shares
                that are still held in escrow returned to the Company and
                cancelled.

            

    

    

    
      
        
          	 	
                  (C)

                	
                  Performance
                    Bonus.
                    Employee shall also be eligible to participate in a lump sum
                    performance
                    bonus pool (the “Pool”) to be established by the Company for key
                    executives, which such Pool shall be computed as ten percent
                    (10%) of the
                    Company’s net income before taxes (“EBIT”). Employee shall allocate the
                    Pool, at his sole discretion, among the key executives and himself.
                    

                

        

      

       

    

    
      	 	
              (D)

            	
              Notwithstanding
                the Employment Fee specified in Section 3(a), Employee’s Fee shall be
                reviewed annually by the Board of Directors. Upon such review, the
                Board
                of Directors may adjust Employee’s fee upwards to such rate as shall be
                considered appropriate by the Board of Directors, taking into account
                economic conditions, competitive conditions within the industry and
                Employee’s performance. Such adjusted fee thereafter shall be the
                Employment Fee for purpose of this
                Agreement.

            

    

    

    
      
         

      

      
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              (E)

            	
              Company
                should indemnify Employee to the fullest extent permitted by the
                Bylaws of
                the Company and the laws of the State in which the Company is incorporated
                for any and all claims made or threatened against Employee by any
                party
                resulting from or alleged to arise out of Employee’s services under this
                Agreement. 

            

    

    

    4. EXPENSES

    

    Employee
      shall be entitled to reimbursement for reasonable travel, lodging, entertainment
      and other out-of-pocket expenses necessarily incurred in the performance of
      his
      duties hereunder, upon submission and approval of written statements, and bills
      in accordance with the then regular procedures of the Company governing
      executives. 

    

    5. REPRESENTATIONS
      AND WARRANTIES OF EMPLOYEE

    

    Employee
      represents and warrants to the Company that Employee is under no contractual
      or
      other restriction or obligation which is inconsistent with the execution of
      this
      Agreement, the performance of his duties hereunder, or the other rights of
      the
      Company hereunder. 

    

    6. OTHER
      EMPLOYEE ACTIVITIES

    

    Employee
      is allowed to continue his activities as the Chairman and CIO of TransGlobal
      Financial Services LLC and the Managing Member of TransGlobal Financial LLC
      that
      serves as the General Partner of Transglobal Turkish Realty Fund I L.P., and
      such activities shall not constitute a conflict of interest under this
      Agreement.

    

    
      
         

      

      
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    7. PATENTS,
      COPYRIGHTS, TRADEMARKS ETC.

    

    Any
      patents, patent applications, inventions, technological innovations, copyrights,
      copyrightable works, developments, discoveries, designs, and processes which
      Employee during the period he is employed by the Company under this Agreement
      conceives of, or relating to the fields in which the Company may then be engaged
      or contemplates (as demonstrated by the records of the Company), being engaged
      in (“Inventions”) shall be the exclusive property of the Company except for
      Publications whose copyright shall remain with Employee and to which the Company
      shall have the exclusive right of use subject to the payment of compensation
      to
      Employee stated in paragraph 3.D.5 of this Agreement. As soon as Employee owns,
      conceives of, or develops any Such Invention, he agrees immediately to
      communicate such fact in writing to the general counsel or the Secretary of
      the
      Company, and without further compensation, but at the Company’s expense (except
      as noted in clause (A) of this Section 7), forthwith upon request of the
      Company, Employee shall execute all such assignments and other documents
      (including applications for patents, copyrights, trademarks, and assignments
      thereof) and take all such other action as the Company may reasonably request
      in
      order:

    

    
      	 	
              (A)

            	
              to
                vest in the Company all Employee’s right, title, and interest in and Such
                Inventions, and

            

    

    
      	 	
              (B)

            	
              if
                patentable or copyrightable, to obtain patents or copyrights including
                extensions and renewals) therefor in any and all countries in such
                name as
                the Company shall determine.

            

    

     

    
      
         

      

      
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    8. CONFIDENTIAL
      INFORMATION

    

    All
      confidential information which Employee may now possess, may obtain during
      the
      Employment Period, or may create prior to the end of the Employment Period
      relating to the business of the Company or of any customer or supplier of the
      Company, shall not be published, disclosed, or made accessible or by him to
      any
      other person, firm, or corporation either during or after the termination of
      his
      employment or used by him, except during the Employment Period in the business
      and for the benefit of the Company, in each case without the prior written
      consent of the Company. Employee shall return all of such confidential
      information to the Company prior to or at the termination of his employment.
      As
      used in this Section 8, “confidential information” shall mean any information
      except that information which is generally known by the Company’s principal
      competitors available to the public, or obtained by Employee from a third party
      without  an
      agreement as
      to
      confidentiality or use.

    

    9. LIFE
      INSURANCE

    

    If
      requested by the Company, Employee shall submit to such physical examination
      and
      otherwise take such actions and execute and deliver such documents as may be
      reasonably necessary to enable the Company, at its expense and for its own
      benefit, to obtain life insurance on the life of Employee. Employee has no
      reason to believe that his life is not insurable with a reputable insurance
      company at rates now prevailing in the city of New York for healthy men of
      his
      age. Insurance to apply only as long as Employee is employed by the
      Company.

    

    10. TERMINATION

    

    (A) Notwithstanding
      anything herein contained, if on or after the date hereof and prior to the
      end
      of the Term of this Agreement, either:

    

    (1) (a) Employee
      shall be physically or mentally incapacitated or disabled or otherwise unable
      fully to discharge his duties hereunder for a continuous period of six months,
      as determined by the Board of Directors,

     

    
      
         

      

      
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    (b) Employee
      shall be convicted of a crime of moral turpitude or a felony,

    (c) Employee
      shall materially breach any fiduciary duty to the Company, or

    (d) Employee
      shall breach any material term of this Agreement and fail to correct such breach
      within 30 days after notice by the Company to Employee of his commission of
      the
      same, then, and in each case under this paragraph A(1), the Company shall have
      the right to give notice of termination of Employee’s services hereunder as of a
      date (not earlier than 10 days from such notice) to be specified in such notice
      and this Agreement and all compensation and benefits shall terminate on the
      date
      so specified, or

    

    (2) Employee
      shall die, then this Agreement shall terminate on the date of Employee’s death,
      whereupon Employee or his estate, as the case may be, shall be entitled to
      receive his compensation and benefits pro rated to the date of death at the
      rate
      then provided pursuant to Section 3 to the date on which termination shall
      take
      effect.

    

    (B)
      Severance Pay. In
      the
      event that Employee’s employment is terminated without cause, the Company will
      pay Employee all amounts and forms of compensation due to Employee pursuant
      to
      paragraph 3. In case of termination, the Employee agrees to honor and comply
      with the provisions of paragraphs 7 and 8 of this Agreement.

    

    
      
         

      

      
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    11. MERGER,
      ETC.

    

    In
      the
      event of a future disposition of (or including) the properties and business
      of
      the Company, substantially as an entirety, by merger, consolidation, sale of
      assets or otherwise, then the Company may assign this Agreement and all of
      its
      rights and obligations hereunder to the acquiring or surviving entity; provided
      that such entity shall assume in writing all of the obligations of the Company
      hereunder; and provided, further, that the Company (in the event and so long
      as
      it remains in existence) shall remain liable for the performance of its
      obligations hereunder in the event of a breach by the acquiring entity of this
      Agreement.

    

    12. SURVIVAL

    

    The
      covenants, agreements, representations, and warranties contained in or made
      pursuant to this Agreement shall survive termination of Employee’s employment
      under this Agreement.

    

    13. ENTIRE
      AGREEMENT, MODIFICATIONS

    

    This
      Agreement sets forth the entire understanding of the parties with respect to
      the
      subject matter hereof, supersedes all prior agreements, oral or written, between
      them concerning such subject matter, and may be modified, changed or waived
      only
      by a written instrument duly executed by each party.

    

    14. NOTICES

    

    Any
      notice or other communication required or permitted to be given here under
      shall
      be in writing and shall be mailed by certified mail, return receipt requested,
      or delivered against receipt to the party to whom it is to be given at the
      address of such party set forth in the preamble to this Agreement (or to such
      other address as the party shall have furnished in writing in accordance with
      provisions of this Section 14). Any notice or other communication given by
      certified mail shall be deemed given three days after the time of certification
      thereof, except for a notice changing a party’s address which shall be deemed
      given at the time of receipt thereof. Notice to the estate of Employee shall
      be
      sufficient if addressed to Employee at his last residence.

    

    
      
         

      

      
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    15. WAIVER

    

    Any
      waiver by either party of a breach of any provision of this Agreement shall
      not
      operate as or be construed to be waiver of any other breach of such provision
      or
      of any breach of any other provision of this Agreement. The failure of a party
      to insist upon strict adherence to any term of this Agreement on one or more
      occasions shall not be considered a waiver or deprive that party of the right
      thereafter to insist upon strict adherence to that term or any other term of
      this Agreement. Any waiver must be in writing, signed by the party giving such
      waiver.

    

    16. BINDING
      EFFECT

    

    Employee’s
      rights and obligations under this Agreement shall not be transferable by
      assignment or otherwise, such rights shall not be subject to commutation,
      encumbrance, or the claims of Employee’s creditors, and any attempt to do any of
      the foregoing shall be void. The provisions of this Agreement shall be binding
      upon and inure to the benefit of Employee and his heirs and personal
      representatives, and shall be binding upon and inure to the benefit of the
      Company and its successors and those who are its assigns under Section
      11.

    

    17. NO
      THIRD PARTY BENEFICIARIES

    

    This
      Agreement does not create, and shall not be construed as creating, any rights
      enforceable by any Person not a party to this Agreement (except as provided
      in
      Section 16).

    

    
      
         

      

      
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    18. HEADINGS

    

    The
      headings in this Agreement are solely for convenience of reference and shall
      be
      given no effect in the construction or interpretation of this
      Agreement.

    

    19. REMEDY

    

    In
      the
      event that any term or provision of this Agreement shall be deemed by a court
      of
      competent jurisdiction, arbitrator or mediator, as the case may be, to be overly
      broad in scope, duration or area of applicability, the court, arbitrator or
      mediator, as the case may be, considering the same shall have the power and
      hereby is authorized and directed to modify such term or provision to limit
      such
      scope, duration or area, or all of them, so that such term or provision is
      no
      longer overly broad and to enforce the same as so limited. Subject to the
      foregoing sentences, in the event that any provision of this Agreement is
      declared invalid, the remaining provisions will remain in force.

    

    20. COUNTERPARTS;
      GOVERNING LAW

    

    This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. This Agreement shall be governed by the laws of California, without
      giving effect to the principles of conflict of laws.

    
      
         

      

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

    

      
        	 	 	 
	 	
                EMVELCO
                  CORP.:

              
	 	 	 
	 	
                By:
                  /s/
                  Yossi Attia

              
	 	 	
                Yossi
                  Attia

              
	 	 	
                Chief
                  Executive Officer 

              
	 	 	 
	 	 	 
	 	
                MIKE
                  M. MUSTAFOGLU

              
	 	 	 
	 	
                By:
                  /s/
                  Mike M. Mustafoglu

              
	 	 	
                Mike
                  M. Mustafoglu

              

      

    

     

    
      
         

      

      
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          -Unassociated Document

    THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE HEREOF HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”). THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE HEREOF
      MAY NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION ACT, OR AN OPINION OF COUNSEL, WHICH
      OPINION IS SATISFACTORY IN FORM AND SUBSTANCE TO THE CORPORATION, TO THE EFFECT
      THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR SUCH
      TRANSACTION COMPLIES WITH RULES PROMULGATED BY THE SECURITIES AND EXCHANGE
      COMMISSION UNDER THE SECURITIES ACT OR UNLESS SOLD PURSUANT TO RULE 144 OF
      SUCH
      ACT.

    

    VOID
      AFTER 8/5/ 2013

    

    STOCK
      PURCHASE WARRANT

    To
      Purchase Shares of Common Stock of

    EMVELCO
      CORP.

    

    THIS
      CERTIFIES that, for value received, Mike
      M. Mustafoglu
      (“Holder”) is entitled, upon the terms and subject to the conditions hereinafter
      set forth, to subscribe for and purchase, from Emvelco Corp., a Delaware
      corporation (the “Company”), 10,000,000 fully paid and non-assessable shares of
      the Company’s Common Stock (“Stock”) at a purchase price equal to the lesser of
      $0.50 per share or 50% of the average market price of the Common Stock of the
      Company over the 20-day period prior to exercise (the “Exercise Price”). The
      Exercise Price and the number and kind of Stock purchasable under this warrant
      (“Warrant”) are subject to adjustments as provided herein.

    

    1. Term
      of Warrant. Subject
      to the terms and restrictions set forth herein, this Warrant may be exercised
      at
      any time, or from time to time, in whole or in part during the term commencing
      on the day following the issuance of this Warrant and ending on the earlier
      of:

    

    (a) 5:00p.m.
      West Coast time on the date five years after the date of issuance of this
      Warrant; or

    

    (b) the
      effective date of the merger of the Company with and into, the consolidation
      of
      the Company with, or the sale by the Company of all or substantially all of
      its
      assets to, another corporation (other than such a transaction wherein the
      shareholders of the Company retain or obtain a majority of the voting capital
      stock of the surviving, resulting or purchasing corporation); provided that
      the
      Company shall notify the registered Holder of this Warrant of the proposed
      effective date of the merger, consolidation or sale at least thirty (30) days
      prior to the effectiveness thereof; and provided further that no less than
      five
      (5), nor more than ten (10), days before the actual effective date of the
      merger, consolidation or sale, the Company shall give further notice to such
      holder by advising it of such actual date.

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    In
      the
      event that any transaction of which the Company shall have given notice pursuant
      to sub-paragraph (c) hereof does not come on approximately the date specified
      by
      the Company, unless otherwise elected by the Holder, any exercise of the Warrant
      subsequent to the giving of such notice shall be rescinded and the Warrant
      shall
      again be exercisable until terminated in accordance with this paragraph
      1.

    

    2. Transfer
      of Warrant. The
      Stock
      issued upon exercise hereof may not be transferred or assigned without
      compliance with applicable federal and state securities laws by the transferor
      and the transferee (including the delivery of investment representation letters
      and legal opinions reasonably satisfactory to the Company, if requested by
      the
      Company).

    

    3. Regular
      Exercise of Warrant. Subject
      to the vesting limitations set forth in Section 3(b) of the Employment Agreement
      executed August 19, 2008 and effective July 1, 2008 by and between the Holder
      and the Company, the rights represented by this Warrant may be exercised by
      Holder, in whole or in part, at any time or from time to time, during the term
      hereof as described in Section 1 above, by the surrender of this Warrant and
      the
      Notice of Exercise annexed hereto duly executed on behalf of Holder, at the
      office of the Company, in 10990
      Wilshire Blvd., Suite 1220, Los Angeles, CA  90024
      (or such
      other office or agency of the Company as it may designate by notice in writing
      to Holder at its address appearing on the books of the Company), and upon
      payment of the Exercise Price of the Stock thereby purchased by cash, certified
      check or wire transfer whereupon Holder shall be entitled to receive a
      certificate for the number of shares of Stock so purchased. The Company agrees
      that the shares so purchased shall be issued to Holder as the record owner
      of
      such shares as of the close of business on the date on which this Warrant shall
      have been exercised.

    

    Certificates
      for shares purchased hereunder shall be delivered to Holder within a reasonable
      time after the date on which this Warrant shall have been exercised. Unless
      this
      Warrant has expired, a new Warrant representing the number of shares, if any,
      with respect to which this Warrant shall not then have been exercised shall
      also
      be issued to Holder. Such certificates shall bear any restrictive legends
      required by United States or California securities law.

    

    The
      Company covenants and warrants that all shares of Stock which may be issued
      upon
      the exercise of this Warrant will, upon exercise of the rights represented
      by
      this Warrant, be duly authorized, validly issued, fully paid and
      nonassessable.

     

    4. Right
      to Convert Warrant Net Issuance.

    

    (a) Right
      to Convert. In
      addition to and without limiting the rights of the Holder under the terms of
      this Warrant, the Holder shall have the right to convert this Warrant or any
      portion thereof (the “Conversion Right”) into shares of Stock as provided in
      this Section 4 at any time or from time to time during the term of this Warrant.
      Upon exercise of the Conversion Right with respect to a particular number of
      shares of Stock subject to this Warrant (“Converted Warrant Shares”), the
      Company shall deliver to the Holder (without payment by the Holder of any
      Exercise Price or any cash or other consideration) (X) that number of shares
      of
      fully paid and nonassessable Stock equal to the quotient obtained by dividing
      the value of this Warrant (or the specified portion hereof) on the Conversion
      Date (as defined in Section 4(b), which value shall be determined by subtracting
      (A) the aggregate Exercise Price of the Converted Warrant Shares immediately
      prior to the exercise of this Warrant (or the specified portion hereof) on
      the
      Conversion Date (as herein defined) by (Y) the fair market value of one share
      of
      Stock on the Conversion Date (as herein defined).

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Expressed
      as a formula, such conversion shall be computed as follows:

    

    X
      =
B
      - A

             
      Y

     

    
      
        
          	
                  Where:
                    

                	
                  X

                	
                  =

                	
                  the
                    number of shares of Stock that may be issued to the
                    Holder

                
	 	 	 	 	 
	 	 	
                  Y

                	
                  =

                	
                  the
                    fair market value (FMV) of one share of Stock

                
	 	 	 	 	 
	 	 	
                  A

                	
                  =

                	
                  the
                    aggregate Exercise Price (i.e., Converted Warrant Shares x Exercise
                    Price)

                
	 	 	 	 	 
	 	 	
                  B

                	
                  =

                	
                  the
                    aggregate FMV (i.e., FMV x Converted Warrant
                    Shares)

                

        

         

      

    

    No
      fractional shares shall be issuable upon exercise of the Conversion Right,
      and,
      if the number of shares to be issued determined in accordance with the foregoing
      formula is other than a whole number, the Company shall pay to the Holder an
      amount in cash equal to the fair market value of the resulting fractional share
      on the Conversion Date (as hereinafter defined). For purposes of this Section
      4,
      shares issued pursuant to the Conversion Right shall be treated as if they
      were
      issued upon the exercise of this Warrant.

    (b) Method
      of Exercise. The
      Conversion Right may be exercised by the Holder by the surrender of this Warrant
      at the principal office of the Company together with a written statement
      specifying that the Holder thereby intends to exercise the Conversion Right
      and
      indicating the number of shares of Stock subject to this Warrant which are
      being
      surrendered (referred to in Section 4(a) hereof as the Converted Warrant Shares)
      in exercise of the Conversion Right. Such conversion shall be effective upon
      receipt by the Company of this Warrant together with the aforesaid written
      statement, or on such later date as is specified therein (the “Conversion
      Date”). Certificates for the shares issuable upon exercise of the Conversion
      Right and , if applicable, a new warrant evidencing the balance of the shares
      remaining subject to this Warrant, shall be issued as of the Conversation Date
      and shall be delivered to the Holder within fourteen (14) days following the
      Conversion Date.

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c) Determination
      of Fair Market Value. For
      purposes of this Section 4, “fair market value” of a share of Stock as of the
      Conversion Date shall mean:

    

    (A) If
      the
      Common Stock is traded on a securities exchange, the Nasdaq Small-Cap Market,
      the fair market value per share of the Common Stock shall be deemed to be the
      product of (i) the average of the closing prices of the Common Stock on such
      exchange or market over the thirty (30) day period ending five (5) business
      days
      prior to the Conversion Date and (ii) the number of shares of Common Stock
      into
      which each share of Stock under this Warrant is convertible at the time of
      such
      conversion;

    

    (B) If
      the
      Common Stock is traded over-the-counter but not on the Nasdaq National Market
      or
      the Nasdaq Small-Cap Market, the fair market value per share of the Stock shall
      be deemed t be the product of (i) the average of the closing bid prices of
      the
      Common Stock over the thirty (30) day period ending five (5) business days
      prior
      to the Conversion Date and (ii) the number of shares of Stock for which the
      Warrant may be exercised at the time of such conversion; and 

    

    (C) If
      there
      is no public market for the Common Stock, then the fair market value shall
      be
      determined by the Company’s Board of Directors in good faith.

    

    5. No
      Fractional Shares or Scrip. No
      fractional shares or scrip representing fractional shares shall be issued upon
      the exercise of this Warrant.

    

    6. Charges,
      Taxes and Expenses. Issuance
      of certificates for shares of Stock upon the exercise of this Warrant shall
      be
      made without charge to Holder for any United States or state of United States
      documentary stamp tax or other incidental expense in respect of the issuance
      of
      such certificate, all of which taxes and expenses shall be paid by the Company,
      and such certificates shall be issued in the name of Holder.

    

    7. Transfer
      Rights; Rights as Stockholders; Registration Rights. This
      Warrant is fully assignable by Holder, without limitation, to any party it
      so
      chooses. The rights and obligations of the parties hereunder shall inure to
      the
      benefit of, and be binding upon, their respective successors, assigns and legal
      representatives. This Warrant does not entitle the Holder hereto to any voting
      rights or other rights as a stockholder of the Company prior to the exercise
      hereof. The Stock subject to this Warrant is subject to that certain Investors’
Rights Agreement of even date herewith entered into by and among the Company,
      the Holders and certain other parties.

    

    8. Exchange
      and Registry of Warrant. This
      Warrant is exchangeable, upon the surrender hereof by the registered holder
      at
      the above-mentioned office or agency of the Company, for a new Warrant in such
      denominations as may be requested, but otherwise of like tenor and dated as
      of
      such exchange.

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    The
      Company shall maintain a registry showing the name and address of the registered
      holder of this Warrant. This Warrant may be surrendered for exchange or
      exercise, in accordance with its terms, at such office or agency of the Company,
      and the Company shall be entitled to rely in all respects, prior to written
      notice to the contrary, upon such registry.

    

    9. Loss,
      Theft, Destruction or Mutilation of Warrant. Upon
      receipt by the Company of evidence reasonably satisfactory to it of the loss,
      theft, destruction or mutilation of this Warrant, and in case of loss, theft
      or
      destruction, of indemnity or security reasonably satisfactory to it, and upon
      reimbursement to the Company of all reasonable expenses incidental thereto,
      and
      upon surrender and cancellation of this Warrant, if mutilated, the Company
      will
      make and deliver a new Warrant of like tenor and dated as of such cancellation,
      in lieu of this Warrant.

    

    10. Adjustments. The
      terms
      of this Warrant, the Exercise Price per share and the number of shares
      purchasable hereunder are subject to adjustment from time to time as
      follows:

    (a) Merger,
      Sale of Assets, etc. If
      at any
      time while this Warrant, or any portion thereof, is outstanding and unexpired
      there shall be (i) a reorganization (other than a combination, reclassification,
      exchange or subdivision of shares otherwise provided for herein), (ii) a merger
      or consolidation of the Company with or into another corporation in which the
      Company is not the surviving entity, or a reverse triangular merger in which
      the
      Company is the surviving entity but the shares of the Company’s capital stock
      outstanding immediately prior to the merger are converted by virtue of the
      merger into other property, whether in the form of securities, cash or
      otherwise, or (iii) a sale or transfer of the Company’s properties and assets as
      , or substantially as, an entirety to any other person, then, as a part of
      such
      reorganization, merger, consolidation, sale or transfer, lawful provision shall
      be made so that the Holder of this Warrant shall thereafter be entitled to
      receive upon exercise of this Warrant, during the period specified herein and
      upon payment of the Exercise Price then if effect, the number of shares of
      stock
      or other securities or property of the successor corporation resulting from
      such
      reorganization, merger, consolidation, sale or transfer that a holder of shares
      deliverable upon exercise of this Warrant would have been entitled to receive
      in
      such reorganization, consolidation, merger, sale or transfer if this Warrant
      had
      been exercised immediately before such reorganization, merger, consolidation,
      sale or transfer, all subject to further adjustment as provided in this Section
      10. The foregoing provisions of this Section 10(a) shall similarly apply to
      successive reorganizations, consolidations, mergers, sales and transfers and
      to
      the stock or securities of any other corporation that are at the time receivable
      upon the exercise of this Warrant. If the per-share consideration payable to
      the
      Holder hereof for shares in connection with any such transaction is in a form
      other than cash or marketable securities, then the value of such consideration
      shall be determined in good faith by the Company’s Board of Directors. In all
      events, appropriate adjustment (as determined in good faith by the Company’s
      Board of Directors) shall be made in the application of the provisions of the
      Warrant with respect to the rights and interests of the Holder after the
      transaction, to the end that the provisions of this Warrant shall be applicable
      after that event, as near as reasonably may be, in relation to any shares or
      other property deliverable after that event upon exercise of this
      Warrant.

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b) Reclassification,
      etc. If
      the
      Company, at any time while this Warrant, or any portion thereof, remains
      outstanding and unexpired by reclassification of securities or otherwise, shall
      change any of the securities as to which purchase rights under this Warrant
      exist into the same or a different number of securities of any other class
      or
      classes, this Warrant shall thereafter represent the right to acquire such
      number and kind of securities as would have been issuable as the result of
      such
      change with respect to the securities that were subject to the purchase rights
      under this Warrant immediately prior to such reclassification or other change
      and the Exercise Price therefor shall be appropriately adjusted, all subject
      to
      further adjustment as provided in this Section 10. 

    

    (c) Split,
      Subdivision or Combination of Shares. If
      the
      Company at any time while this Warrant, or any portion thereof, remains
      outstanding and unexpired shall split, subdivide or combine the securities
      as to
      which purchase rights under this Warrant exist, into a different number of
      securities of the same class, the Exercise Price for such securities shall
      be
      proportionately decreased in the case of a split or subdivision or
      proportionately increased in the case of a combination.

    (d) Adjustments
      for Dividends in Stock or Other Securities or Property. If
      while
      this Warrant, or any portion hereof, remains outstanding and unexpired the
      holders of the securities as to which purchase rights under this Warrant exist
      at the time shall have received, or, on or after the record date fixed for
      the
      determination of eligible stockholders, shall have become entitled to receive,
      without payment therefor, other or additional stock or other securities or
      property (other than cash) of the Company by way of dividend, then and in each
      case, to the number of shares of the security receivable upon exercise of this
      Warrant, and without payment of any additional stock or other securities or
      property (other than cash) of the Company that such holder would hold on the
      date of such exercise had it been the holder of record of the security
      receivable upon exercise of this Warrant on the date hereof and had thereafter,
      during the period from the date to and including the date of such exercise,
      retained such shares and/or all other additional stock available by it as
      aforesaid during such period, giving effect to all adjustments called for during
      such period by the provisions of this Section 10.

    

    (e) Certificate
      as to Adjustments. Upon
      the
      occurrence of each adjustment or readjustment pursuant to this Section 10,
      the
      Company at its expense shall promptly compute such adjustment or readjustment
      in
      accordance with the terms hereof and furnish to each Holder of this Warrant
      a
      certificate setting forth such adjustment or readjustment and showing in detail
      the facts upon which such adjustment or readjustment is based. The Company
      shall, upon the written request, at any time, of any such Holder, furnish or
      cause to be furnished to such Holder a like certificate setting forth: (i)
      such
      adjustments and readjustments; (ii) the Exercise Price at the time in effect;
      and (iii) the number of shares and the amount, if any, of other property that
      at
      the time would be received upon the exercise of the Warrant.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    11. Authorized
      Shares. The
      Company covenants that during the period the Warrant is outstanding, it will
      reserve from its authorized and unissued Common Stock a sufficient number of
      shares to provide for the issuance of this Warrant shall constitute full
      authority to its officers who are charged with the duty of executing stock
      certificates to execute and issue the necessary certificates for shares of
      the
      Company’s Common Stock upon the exercise of the rights under this
      Warrant.

    

    12. Miscellaneous.

    

    (a) Issue
      Date. The
      provisions of this Warrant shall be construed and shall be given effect in
      all
      respect as if it had been issued and delivered by the Company on the date
      hereof.

    

    (b) Successors. This
      Warrant shall be binding upon any successors or assigns of the
      Company.

    

    (c) Governing
      Law. This
      Warrant shall be governed by and construed in accordance with the laws of the
      State of California.

    

    (d) Headings. The
      headings used in this Warrant are used for convenience only and are not to
      be
      considered in construing or interpreting this Agreement.

    

    (e) Notices. Unless
      otherwise provided, any notice required or permitted under this Warrant shall
      be
      given in writing and shall be deemed effectively given upon personal delivery to
      the party to be notified or three (3) days after being sent via air courier,
      in
      all cases addressed to the party to be notified at the address indicated for
      such party on the signature page hereof, or at such other address as such party
      may designate by ten (10) days advance written notice to the other
      party.

    

    (f) Saturdays,
      Sundays, Holidays. If
      the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall be a Saturday or a Sunday or shall be
      a
      legal holiday in the State of California, then such action may be taken or
      such
      right may be exercised on the next succeeding day not a legal
      holiday.

    

    (g) Attorney’s
      Fees. In
      the
      event that any dispute among the parties to this Agreement should result in
      litigation, the prevailing party in such dispute shall be entitled to recover
      from the losing party all fees, costs and expenses of enforcing any right of
      such prevailing party under or with respect to this Agreement, including without
      limitation, such reasonable fees and expenses of attorneys and accountants,
      which shall include, without limitation, all fees, costs and expenses of
      appeals.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, Emvelco Corp. has caused this Warrant to be executed by its
      officer thereunto duly authorized.

    

    Dated:
      August 19, 2008

    

      
        	 	EMVELCO
                CORP.
	 	 	 
	 	
                By:
                  

              	
                /s/
                  Yossi Attia

              
	 	 	
                Yossi
                  Attia

              
	 	
                Its:

              	
                Chief
                  Executive
                  Officer

              

      

    

    

    Address
      of Holder

    

    2934
      Beverly Glen Circle, No. 276

    

    Bel
      Air,
      CA 90077

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    Notice
      of Exercise

    

    Pursuant
      to the terms of the Common Stock Purchase Warrant of Emvelco Corp. Dated as
      of
      August __, 2008 (the “Warrant”), the undersigned registered holder of the
      Warrant hereby elects to purchase _________ shares of Common Stock of EMVELCO
      CORP. at a price of $_______ per share (the “Exercise Price”). Payment of the
      Exercise Price is hereby made by [indicate which]:

    
       

        
          	 	
                  ________

                	
                  Cash
                    in the amount of $__________________.

                
	 	 	 
	 	
                  ________

                	
                  Certified
                    check made payable to the Company in the amount of $_______________.

                
	 	 	 
	 	
                  ________

                	
                  Wire
                    transfer to the Company’s account in the amount of $_______________.

                
	 	 	 
	 	
                  ________

                	
                  Cancellation
                    of the following indebtedness of the Company to Holder in the
                    amount of
                    $________________.

                
	 	 	 
	 	 	 
	 	 	 
	 	
                  ________

                	
                  Net
                    Exercise for _______________________
                    shares.

                

        

      

    

    
      

      IN
        WITNESS WHEREOF, ____________________________ (“Holder”) has caused this Notice
        of Exercise to be executed by its officers thereunto duly
        authorized.

      

      Dated:
        ___________________, 200 ___

      

      
        	 	 	
                 

              
	 	 	
                (Name
                  of Holder)

              
	 	 	 
	 	 By:
                	 
	 	 	 
	 	 Its:	 

      

      

      
        
           

        

        
          9

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