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Unassociated Document

    EXHIBIT
      10.1

    

    AMENDMENT
      NO. 1 TO 

    EMPLOYMENT
      AGREEMENT

    

    THIS
      AMENDMENT NO. 1 TO THE EMPLOYMENT AGREEMENT (the “Amendment”), dated as of June
      23, 2006, is entered into by and among Berman Center, Inc., a Delaware
      corporation (“Company” or “Berman Center”), and Laura A.C. Berman, LCSW, Ph.D.,
      an individual (“Dr. Berman”). Company or Dr. Berman are sometimes referred to
      herein as “party” or collectively as “parties”.

    

    RECITALS

    

    WHEREAS,
      the Company and Dr. Berman have entered into that certain Employment Agreement
      dated as of June 16, 2005 (the “Employment Agreement”);

    

    WHEREAS,
      the parties desire to amend the Employment Agreement by entering into this
      Amendment; and

    

    WHEREAS,
      Paragraph 20 of the Employment Agreement permits the parties to amend the
      Employment Agreement only by a written instrument executed by the parties.
      

    

    NOW,
      THEREFORE, for good and valuable consideration and in consideration of the
      respective representations, warranties, covenants and agreements set forth
      in
      the Employment Agreement, the parties hereby agree to amend the Employment
      Agreement as follows:

    

    AGREEMENT

    

    1.     Paragraph
      1 of the Employment Agreement is hereby amended and restated in its entirety
      as
      follows: 

    

    “1. Term

    

    The
      term
      of employment under this Agreement shall be for a period commencing on the
      Effective Date and concluding on the fourth anniversary of the Effective Date
      (the “Term”, inclusive of any and all extensions, if applicable), unless
      terminated earlier pursuant to the provisions of Paragraph 7 below. At or near
      the expiration of the Term, the parties agree to engage in good faith
      discussions regarding a new employment contract or an extension of this
      Agreement. However, neither party shall be obligated to enter into a new
      agreement, nor does this Paragraph 1 create any representation, express or
      implied, that a new agreement will be entered into.”

    

    2.     Paragraphs
      3(a) and 3(b) of the Employment Agreement are hereby amended and restated in
      their entirety as follows: 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “(a)
       Salary.
      As the
      total consideration for Dr. Berman’s Services rendered and Products created
      hereunder, Dr. Berman shall be entitled to an annual salary of Two Hundred
      Thousand Dollars ($200,000.00) (the “Salary”) beginning on the Effective Date of
      the Agreement and payable in regular installments in accordance with the
      customary payroll practices of Company. The Salary may be increased at the
      discretion of the Board of Directors on or after the 180th day following the
      Effective Date. The Salary shall not be decreased unless the Board determines
      that a decrease is necessary for the survival of the Company and such decrease
      is reasonable.”

    

    (b)  Expenses.
      During
      the Term, Company shall pay or promptly reimburse Dr. Berman for all business,
      travel and entertainment expenses consistent with Dr. Berman’s title and the
      practices of Company in effect during the Term. Company shall also provide
      Dr.
      Berman with any and all items reasonably necessary and appropriate to render
      the
      Services and create the Products hereunder to the best of her abilities
      including, without limitation, electronic equipment and a personal assistant
      for
      use during the Term.”

    

    3.     Paragraph
      4(c) of the Employment Agreement is hereby amended and restated in its entirety
      as follows:

    

    “(c) In
      the
      event Dr. Berman’s employment is terminated pursuant to Paragraphs 6(b) or 6(d)
      herein, any and all revenues generated as a result of Dr. Berman’s Services
      rendered and Products created during the Term shall be the property of the
      Company and any and all revenues generated as a result of Dr. Berman’s Services
      rendered and Products created by Dr. Berman after the Term shall be the property
      of Dr. Berman.”

    

    4.     Paragraph
      7(c)(iii) of the Employment Agreement is hereby amended and restated in its
      entirety as follows:

    

    “(iii)
      Upon Dr. Berman’s Termination Without Cause or Termination for Good Reason, any
      and all rights in and to the Services rendered during the Term and Products
      created during the Term including, without limitation, all right, title,
      interest, and license in such Services and Products, shall be the property
      of
      the Company. Any and all rights in and to the Services rendered after the Term
      and Products created after the Term including, without limitation, all right,
      title, interest, and license in such Services and Products, shall be the
      property of Dr. Berman. In connection therewith, Company agrees to execute
      any
      and all documents and instruments as may reasonably be required in order to
      secure Dr. Berman’s control and ownership of Services and Products created and
      rendered after the Term, and in the event Company fails or is unable to execute
      any such documents or instruments, after receipt of a written request therefore
      from Dr. Berman, Company hereby appoints Dr. Berman as its irrevocable attorney
      in fact to execute any such documents or instruments, provided that said
      documents and instruments shall not be inconsistent with the terms and
      conditions of this Agreement. Dr. Berman’s rights under this Paragraph 7(c)(iii)
      constitute a power coupled with an interest and are irrevocable. In addition,
      the provisions of Paragraphs 9 and 10 of this Agreement shall not apply upon
      Termination Without Cause or Termination for Good Reason.” 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.     Except
      as
      amended herein, the Employment Agreement shall remain in full force and
      effect.

    

    6.     This
      Amendment may be executed in any number of facsimile counterparts, each of
      which
      shall be an original, but which together constitute one and the same instrument.
      This Amendment may be executed and delivered by facsimile.

    

    [SIGNATURES
      ON NEXT PAGE]

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have duly executed this Amendment as of the date
      as
      first set forth above.

    

    

    
      	 	 	 
	 	 	
              BERMAN
                CENTER, INC., a Delaware corporation

            
	 	 	 
	 	
              By:

            	
              /s/
                Samuel Chapman

            
	 	 	
              Name:
                Samuel Chapman

            
	 	 	
              Title:
                Chief Executive Officer

            
	 	 	 
	 	
              and

            	 
	 	 	 
	 	 	
              LAURA
                A.C. BERMAN, LCSW, PH.D.

            
	 	 	 
	 	
              By:

            	
              /s/
                Laura A.C. Berman, LCSW, Ph.D.

            
	 	 	
              Laura
                A.C. Berman, LCSW, Ph.D.EXHIBIT 4.10

    

    PowerDsine
      Ltd.

    

    2006
      ISRAELI SHARE INCENTIVE COMPENSATION PLAN

    

    

    
      	1.	
              Purpose

            

    

    

    The
      purpose of this Plan (as defined in Section 2.1 below) is to secure for
PowerDsine Ltd.,
      a
      company organized under the laws of the State of Israel (the “Company”)
      and
      its shareholders the benefits arising from ownership of share capital by
      employees, officers and directors of the Company and its Affiliates (as defined
      in Section 2.1 below), who are expected to contribute to the Company’s future
      growth and success.

    

    
      	2.	
              Definitions

            

    

    

    
      	2.1	
              Defined
                Terms  

            

    

    

    Initially
      capitalized terms, as used in this Plan, shall have the meaning ascribed thereto
      as set forth below:

    
      	
               

              “Administrator” 

            	
               

              means
                the Board of Directors of the Company, or a committee to which the
                Board
                of Directors shall have delegated power to act on its behalf with
                respect
                to the Plan. Subject to the Articles of Association of the Company,
                as may
                be amended from time to time, the Administrator, if it is a committee,
                shall consist of such number of members (but not less than two (2))
                as may
                be determined by the Board.

            
	
               

              “Affiliate(s)”

               

            	
               

              means
                a present or future entity that either (i) Controls the Company or
                is
                Controlled by the Company; or (ii) is Controlled by the same person
                or
                entity that Controls the Company. 

            
	
               

              “Award(s)”

            	
               

              means
                an award of Restricted Share(s) and/or Restricted Share Unit(s) and/or
                Option(s).

            
	
               

              “Award
                Grant Letter”

            	
               

              means
                Option Grant Letter and/or Restricted Share Grant Letter and/or Restricted
                Share Unit Grant Letter.

            
	
               

              “Allocate”
                or “Allocated”

            	
               

              with
                respect to Awards, means the allocation of Awards by the Company
                to the
                Trustee on behalf of a Participant.

            
	
               

              “Articles”

            	
               

              the
                Articles of Association of the Company, as may be amended from time
                to
                time.

            
	
               

              “Board”

            	
               

              the
                board of directors of the Company.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	
               

              “Cause”

            	
               

              when
                used in connection with the termination of a Participant's employment
                with, or services to the Company or an Affiliate, and forming the
                basis of
                such termination: (a) the definition ascribed to Cause in the individual
                employment agreement or services agreement between the Company and/or
                its
                Affiliate and the Participant, (b) if no such definition exists,
                then any
                one of the following: (i) termination of engagement by the Company
                or an
                Affiliate, which under Israeli law denies the Participant’s entitlement to
                severance pay; (ii) dishonesty towards the Company or an Affiliate,
                (iii)
                insubordination with respect to reasonable directives of the Participant’s
                direct supervisor or to directives of the Board, (iv) substantial
                malfeasance or nonfeasance of duty, (v) embezzlement of the Company’s or
                an Affiliate’s funds, (vi) unauthorized disclosure of confidential
                information, (vii) conduct substantially
                prejudicial to the business of the Company or Affiliate,
                (viii) any substantial breach by the Participant of his/ her employment
                or
                service agreement or any other obligations towards Company or an
                Affiliate.

            
	
               

              “Change
                in Capitalization”

            	
               

              any
                increase, reduction or change or exchange of shares for a different
                number
                or kind of shares or other securities by reason of a reclassification,
                recapitalization, merger, assets sale, consolidation, reorganization,
                issuance of warrants or rights, dividend or other distribution (whether
                in
                the form of cash, shares or other property), share split, spin-off,
                combination or exchange of shares, repurchase of shares, or change
                in
                corporate structure.

            
	
               

              “Commencement
                Date”

            	
               

              means
                the date of commencement of the vesting schedule with respect to
                a Grant
                of Awards which, unless otherwise determined by the Administrator,
                shall
                be the date on which such Grant of Awards shall be Allocated.
                

            
	
               

              “Control”
                or “Controlled”

            	
               

              shall
                have the meaning ascribed thereto in Section 102.

            
	
               

              “Disability”

            	
               

              means,
                (A) the definition of such term in the individual employment or services
                agreement between the Company and/or an Affiliate and the Participant,
                or
                (B) if no such definition exists, then any physical or mental illness
                or
                injury as a result of which the Participant remains absent from work
                or is
                otherwise precluded from rendering his/her services to the Company
                and/or
                an Affiliate, for, (i) a period of two (2) consecutive months, or
                (ii) an
                aggregate of two (2) months in any twelve (12) month period. Disability
                shall occur upon the end of such
                period.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    
      	
               

              “Exercise
                Price”

            	
               

              means
                the price determined by the Administrator in accordance with Section
                7.1
                below which is to be paid to the Company in order to exercise a granted
                Option and convert such Option into an Underlying
                Share.

            
	
               

              “Option
                Grant Letter”

            	
               

              means
                a letter from the Company or Affiliate to a Participant in which
                the
                Participant is notified of the decision to Grant to the Participant
                of
                Options according to the terms of the Plan. The Grant Letter may
                specify
                (i) the Tax Track that the Company chooses according to Section 11
                of the
                Plan; (ii) the Exercise Price; (iii) the number of Options Granted
                to the
                Participant and (iv) the time(s) at which all or portions of an
                outstanding Option becomes vested and exercisable by the
                Participant.

            
	
               

              “Grant
                of Award(s)”

            	
               

              with
                respect to Awards, means the grant of Awards by the Company to a
                Participant pursuant to a Award Grant Letter.

            
	
               

              “Holding
                Period”

            	
               

              means
                the period in which the Allocated Awards granted to a Participant
                are to
                be held by the Trustee on behalf of the Participant, in accordance
                with
                Section 102, and pursuant to the Tax Track which the Company selects.
                

            
	
               

              “Law”

            	
               

              means
                the laws of the State of Israel as are in effect from time to
                time.

            
	
               

              “Merger
                Transaction”

            	
               

              means
                (i) a sale of all or substantially all of the assets of the Company;
                or
                (ii) a sale (including an exchange) of all or substantially all of
                the
                shares of the capital stock of the Company; or (iii) a merger,
                consolidation or like transaction of the Company with or into another
                corporation.

            
	
               

              “NASDAQ”

            	
               

              means
                the Nasdaq Market Inc. National Market.

            
	
               

              “Notice
                of Exercise”

            	
               

              shall
                have the meaning set forth in Section 7.4 below.

            
	
               

              “Option”

            	
               

              means
                the right granted to a Participant to purchase one (1) Share of the
                Company.

            
	
               

              “Participant”

            	
               

              means
                an employee, officer or director of the Company or any Affiliate
                (provided
                that such person does not Control the Company as such term is defined
                in
                the Tax Ordinance), on behalf of whom an Award is Granted pursuant
                to the
                Plan.

            
	
               

              “Plan”
                or “Option Plan”

            	
               

              means
                the 2006 Israeli Share Incentive Compensation Plan, as may be amended
                from
                time to time.

            

    

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
               

              “Retirement”

            	
               

              means
                the termination of a Participant's employment as a result of his/her
                reaching the earlier of (i) the age of retirement prescribed by Law;
                or
                (ii) the age of retirement specified in the Participant’s employment
                agreement; or (iii) the Company’s written consent for
                retirement.

            
	
               

              “Restricted
                Share(s)”

               

            	
               

              means
                a specified number of Shares which are subject to restrictions and
                are
                subject to forfeiture upon happening of specified events. If and
                when the
                restrictions set forth in Paragraph 8.2 expire in accordance with
                the
                terms of this Plan and the Restricted Share Grant Letter without
                forfeiture of the Restricted Shares, and upon the satisfaction of
                all
                other applicable conditions as to the Restricted Shares, such shares
                shall
                no longer be considered Restricted Shares for purposes of this Plan.
                No
                expiration of the restrictions set forth in Paragraph 8 shall affect
                the
                restrictions contained in Section 102.

            
	
               

              “Restricted
                Share Unit(s)” or RSU(s)

            	
               

              means
                a specified number of units which entitle the Participants to a specified
                number of Shares upon Vesting on a one-for-one basis. Unless
                and until a Restricted Share Units shall have vested in the manner
                set
                forth in paragraph 9.1, the Participant will have no right to receive
                Shares issued upon vesting of such Restricted Share Units and such
                Restricted Share Units will represent an unsecured obligation. Delivery
                of
                any vested Restricted Share Units shall be made in whole Shares
                only.

            
	
               

              “Restricted
                Share Grant Letter”

            	
               

              means
                a letter from the Company or Affiliate to a Participant in which
                the
                Participant is notified of the decision to Grant to the Participant
                Restricted Shares according to the terms of the Plan. The Restricted
                Shares Grant Letter may specify (i) the Tax Track that the Company
                chooses
                according to Section 11 of the Plan; (ii) the number of Restricted
                Shares
                Granted to the Participant and (iii) the time(s) at which all or
                portions
                of an outstanding Restricted Shares become released from Vesting
                Period as
                defined in Paragraph 8.3.

            
	
               

              “Restricted
                Share Unit Grant Letter”

            	
               

              means
                a letter from the Company or Affiliate to a Participant in which
                the
                Participant is notified of the decision to Grant to the Participant
                of
                Restricted Share Units according to the terms of the Plan. The Restricted
                Share Unit Grant Letter may specify (i) the Tax Track that the Company
                chooses according to Section 11 of the Plan; (ii) the number of Restricted
                Share Units Granted to the Participant and (iii) the time(s) at which
                all
                or portions of an outstanding Restricted Share Units become
                vested.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    
      	
               

              “Section
                102”

            	
               

              means
                Section 102 of the Tax Ordinance. 

            
	
               

              “Section
                102 Rules”

            	
               

              means
                the Income Tax Rules (Tax Relief for Issuance of Shares to Employees),
                2003.

            
	
               

              “Share(s)”

            	
               

              means
                Ordinary Shares of the Company, of nominal value NIS 0.01 each, subject
                to
                adjustment for any share splits, combinations or share dividends
                having
                the effect of a share split.

            
	
               

              “Tax
                Ordinance”

            	
               

              means
                the Israeli Income Tax Ordinance [New Version], 1961, as amended,
                and any
                regulations, rules, orders or procedures promulgated there
                under.

            
	
               

              “Tax
                Track”

            	
               

              means
                one of the three tax tracks described under Section 102, specifically:
                (1)
                the “Capital Gains Track Through a Trustee”; (2) “Income Tax Track Through
                a Trustee”; or (3) the “Income Tax Track Without a Trustee”; each as
                defined in Sections 11.1-11.2 of this Plan,
                respectively.

            
	
               

              “Termination
                of Employment”

            	
               

              Termination
                of the employment relationship of a Participant who is either an
                employee,
                director or officer of the Company or an Affiliate, by either the
                Company,
                an Affiliate or the Participant.

            
	
               

              “Term
                of the Options”

            	
               

              means,
                with respect to Granted but unexercised Options, the time period
                set forth
                in Section 7.6 below.

            
	
               

              “Trustee”

            	
               

              means
                a Trustee appointed by the Company to hold in trust, Awards and Underlying
                Shares.

            
	
               

              “Underlying
                Shares”

            	
               

              means
                Shares issued or to be issued upon exercise of Granted Options and/or
                Shares issued upon vesting of RSU and/or Shares released upon vesting
                of
                Restricted Shares, all in accordance with the
                Plan.

            

    

    

     

    
      	2.2	
              General
                

            

    

    

    Without
      derogating from the meanings ascribed to the capitalized terms above, all
      singular references in this Plan shall include the plural and vice versa, and
      reference to one gender shall include the other, unless otherwise required
      by
      the context.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    
      	
              3.

            	
              Shares
                Available for Options

            

    

    

    The
      total
      number of Shares reserved for issuance under this Plan and any modification
      thereof, shall be determined from time to time by the Board. Such number of
      Shares shall be subject to adjustment as required for the implementation of
      the
      provisions of this Plan, in accordance with the provisions of Section 4
      below.

    

    In
      the
      event that Awards Allocated under the Plan expire, forfeit or otherwise
      terminate in accordance with the provisions of the Plan, such expired or
      terminated Awards shall become available for future Grants and Allocations
      under
      the Plan.

    

    
      	4.	
              Adjustments

            

    

    

    In
      case
      of any Change in Capitalization, and in order to prevent diminution or
      enlargement of the benefits or potential benefits intended to be made available
      under this Plan, appropriate adjustments may be made by the Administrator,
      if
      the Administrator determines that such adjustments are required and such
      determination shall be final, to the number and class of Shares which may be
      purchased and/or delivered under this Plan, and/or the number, class, and price
      of Shares covered by each outstanding Award, and/or the Exercise Price under
      outstanding Options. The Company may, but shall not be obligated to, provided
      for immediate vesting of all outstanding Awards prior to the effectiveness
      of
      such Change in Capitalization, with all Awards not being exercised or vested
      within the time period specified by the Administrator being terminated. Upon
      the
      occurrence of any such adjustment, references in this Plan to Shares and
      Underlying Shares shall be construed to mean the Shares of the Company subject
      to the Plan as so determined by the Administrator, following such adjustment.
      

    

    If
      the
      Change in Capitalization is the distribution of a cash dividend, the Company
      may, but shall not be obligated to (i) transfer to the Trustee the amount of
      dividend resulting from the Underlying Shares or Restricted Shares held by
      the
      Trustee for the benefit of Participants in accordance with the provisions of
      this Plan. The Trustee or the Company, as the case may be, shall deduct all
      applicable taxes from the dividend amount and transfer the remaining dividend
      amount to such Participants.

    

    

    
      	5.	
              Administration
                of the Plan

            

    

    

    
      	5.1	
              Power
                

            

    

    

    Subject
      to applicable law, the Articles of Association of the Company, and any
      resolution to the contrary by the Company’s Board of Directors, the
      Administrator is authorized, in its sole and absolute discretion, to exercise
      all powers and authorities either specifically granted to it under the Plan
      or
      necessary or advisable in the administration of the Plan; including, without
      limitation: 

    

    
      	
            	(A)	
              to
                determine: 

            

    

    

    
      	 	
              (i)

            	
              the
                Participants in the Plan, the number of Awards to be Granted for
                each
                Participant’s benefit and the Exercise Price (in case of Options) subject
                to the approval of the Board of Directors if such approval is required
                by
                Law; 

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    
      	
            	(ii)	
              the
                time or times at which Awards shall be
                Granted;

            

    

    

    
      	
            	(iii)	
              whether,
                to what extent, and under what circumstances an Award may be settled,
                canceled, forfeited, exchanged, or
                surrendered;

            

    

    

    
      	
            	(iv)	
              any
                terms and conditions in addition to those specified in the Plan under
                which an Award may be Granted; and

            

    

    

    
      	
            	(v)	
              any
                measures, and to take actions, as deemed necessary or advisable for
                the
                administration and implementation of the
                Plan.

            

    

    

    
      	
            	(B)	
              to
                interpret the provisions of the Plan and to take all actions resulting
                therefrom including without limitation;

            

    

    

    
      	 	
              (i)

            	
              subject
                to Section 7, 8 and 9, to accelerate the date on which any Allocated
                Award
                under the Plan becomes vested; 

            

    

    

    
      	
            	(ii)	
              to
                waive or amend Plan provisions relating to exercise of Options, including
                exercise of Options after termination of employment, for any reason;
                and

            

    

    

    
      	
            	(iii)	
              to
                amend any of the terms of the Plan, including the terms of specific
                Allocation or any prior determinations of the
                Administrator;

            

    

    

    
      	
            	(C)	
              The
                Administrator may, at any time, and when applicable, after consultation
                with the Trustee, amend, alter, suspend or terminate this Plan.
                Termination of this Plan shall not affect the Administrator’s ability to
                exercise the powers granted to it hereunder with respect to Awards
                granted
                under this Plan prior to the date of such
                termination.

            

    

    

    5.2
      Limitations

    

    Notwithstanding
      the provisions of Section 5.1 above, no interpretations, determinations or
      actions of the Administrator shall contradict the provisions of Section 102,
      and
      no waiver or amendment with respect to the Plan shall have a material adverse
      affect on any Participant's rights in connection with any Granted Award under
      the Plan without receiving the consent of such Participant.

    
 

    6. Allocation
      of awards

    

    
      	6.1	
              Conditions
                for Allocation of awards

            

    

    

    Awards
      may be Allocated at any time after:

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              (A)

            	
              the
                Plan has been approved by the necessary corporate bodies of the Company;
                and

            

    

    

    
      	
            	(B)	
              the
                Trustee and the Plan have been approved by the Israeli Income Tax
                Authorities pursuant to the requirements of the Tax Ordinance or
                the
                Company has filed all required documents with the Israeli Tax Authorities
                as specified in Section 102 and the Rules;
                and

            

    

    

    
      	
            	(C)	
              all
                other approvals, consents or requirements necessary by Law and/or
                NASDAQ
                rules have been received or met

            

    

    

    
      	6.2	
              Date
                of Allocation 

            

    

    

    
      	
            	(A)	
              In
                case of allocation to a Trustee according to Section 102, the date
                on
                which Awards shall be deemed Allocated under the Plan shall be the
                date on
                which the Company shall notify the Trustee that such Allocated Awards
                have
                been Allocated in the name of the Trustee on behalf of a
                Participant

            

    

    

    
      	
            	(B)	
              In
                case of allocation to a Participant, the date on which Awards shall
                be
                deemed Granted under this Plan shall be the date on which the
                Administrator resolved that an Award has been Granted to a Participant.
                

            

    

    

    
      	7.	
              Options 

            

    

    

    
      	7.1	
              Exercise
                Price

            

    

    

    The
      Exercise Price per Underlying Share deliverable upon the exercise of an Option
      shall be determined by the Administrator. The Exercise Price shall be set forth
      in the Grant Letter.

    

    
      	7.2	
              Vesting
                Schedule

            

    

    

    Options
      shall vest (i.e., Options shall become exercisable) at the dates set forth
      in
      the Option Grant Letter (the “Option Vesting
      Dates”).
      The
      vesting schedule may be conditioned on the achievement of certain performance
      goals as shall be determined by the Administrator. An Option may be subject
      to
      such other terms and conditions on the time(s) when it may be exercised as
      the
      Administrator may deem appropriate. The vesting provisions of individual Options
      may vary.

    

    Unless
      otherwise determined by the Administrator, all Options Granted on a certain
      date
      shall be subject to the continued employment with or service to the Company
      or
      Affiliate by the Participant, from the date the Option is Granted until the
      end
      of the last Option Vesting Dates set forth in the Option Grant
      Letter.

    

    

    
      	7.3	
              Minimum
                Exercise

            

    

    

    When
      exercising an Option, and unless restricted by the number of Underlying Shares
      available for exercise, the Participant must exercise such Option with respect
      to at least one hundred (100) Underlying Shares. An Option may not be exercised
      for fractional Shares.

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    The
      exercise by a Participant of a portion of the Options granted shall not cause
      the expiration, termination or cancellation of the remaining portions of Options
      that have vested and that are held by the Participant or the Trustee on behalf
      of the Participant. 

    

    
      	7.4	
              Manner
                of Exercise

            

    

    

    An
      Option
      may be exercised by and upon the fulfillment of the following:

    

    
      	
            	(A)	
              Notice
                of Exercise

            

    

    

    The
      Participant shall sign and deliver to the Company, at its principal office,
      with
      a copy to the Trustee (if the Options are held by a Trustee), a notice of
      exercise of Option, in the form determined for such purpose by the
      Administrator. Any form of Notice of Exercise must include the following
      details: (i) the identity of the Participant, (ii) the number of Options being
      exercised, and (iii) the aggregate Exercise Price to be paid for all Options
      being exercised (the “Purchase
      Price”).
      The
      Participant shall sign and deliver any other/further forms the Company may,
      in
      its sole discretion, require in order for the Participant exercises his
      Options.

    

    
      	
            	(B)	
              Payment
                of Purchase Price

            

    

    

    Payment
      by the Participant to the Company of the Purchase Price shall be made in cash
      or
      by certified check, in U.S. dollars or New Israeli Shekels (“NIS”),
      and
      if payment is made in NIS, to the extent the Exercise Price is denominted in
      U.S. dollars, the amount shall be calculated at the representative rate of
      exchange known on the date of payment. The Company may, in its sole discretion,
      accept any other form of payment from the Participant.

    

    Options
      may also be exercised through a special sale and remittance procedure pursuant
      to which a Participant shall concurrently provide irrevocable written
      instructions to: (a) a Company-designated brokerage firm to effect the immediate
      sale of the Underlying Shares and to remit to the Company, out of the sale
      proceeds available on the settlement date, sufficient funds to cover the
      aggregate exercise price available for the Underlying Shares plus all applicable
      national, state and local income and employment taxes and any other applicable
      taxes required to be withheld by the Company or any Affiliate thereof by reason
      of such exercise; and (b) the Company to deliver the certificates for the
      Underlying Shares, or the equivalent thereof directly to such brokerage firm
      in
      order to complete the sale transaction. Except to the extent the sale and
      remittance procedure is used, payment of the Exercise Price for Underlying
      Shares must be made on the date of the relevant exercise.

    
 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

      `

    

    
      	
            	(C)	
              Allocation
                of Shares

            

    

    

    Upon
      the
      delivery of a duly signed Notice of Exercise and the payment to the Company
      of
      the Purchase Price, the Company shall issue the Underlying Shares to the Trustee
      (according to the applicable Holding Period) or to the Participant, as the
      case
      may be.

    

    
      	
            	(D)	
              Expenses
                

            

    

    

    All
      costs
      and expenses including broker fees and bank commissions, derived from the
      exercise of Options or Underlying Shares, shall be borne solely on the
      Participant.

    

    

    
      	7.5	
              waiver
                of options

            

    

    

    
      
        
          	
                	(A)	
                  At
                    any time prior to the expiration of any Granted (but unexercised)
                    Option,
                    a Participant may waive his rights to such Option by providing
                    the
                    Company, at its principal office, written notice expressly waiving
                    his/her
                    rights to the Option(s) (the“Waiver
                    Notice”).
                    A Waiver Notice shall specify the number of Options being waived
                    and shall
                    be signed by the Participant.

                

        

      

    

    

    
      	
            	(B)	
              Upon
                receipt by the Company of the Waiver Notice, such Options shall expire
                and
                become available for future Grants and Allocations under this
                Plan.

            

    

    

    

    
      	7.6	
              Term
                of the Options

            

    

    

    Unless
      earlier terminated pursuant to the provisions of this Plan, all Granted but
      unexercised Options shall expire and cease to be exercisable at 5:00 p.m. Israel
      time on the tenth (10th) anniversary
      of the Commencement Date of such Options.

     

    
      	8.	
              Restricted
                Shares

            

    

    

    
      	8.1	
              Grant
                of Restricted Share

            

    

    

    As
      soon
      as practicable after the Date of Allocation, the Company shall direct that
      the
      Restricted Shares be registered in the name of and issued to the Trustee for
      the
      benefit of the Participant, either in book entry format or represented by a
      stock certificate or certificates. A Participant selected to receive Restricted
      Shares shall not have any rights with respect to such Award, unless and until
      such Participant has delivered to the Company a fully executed copy of the
      Restricted Share Grant Letter relating thereto and has otherwise complied with
      the applicable terms and conditions of such Award. Further, such Award shall
      be
      subject to the following conditions: 

    

    (A)
      Purchase Price 

    

    The
      purchase price of Restricted Shares shall be determined by the Administrator,
      all in accordance with the Law. The purchase price shall be set forth in the
      Restricted Share Grant Letter. Should the purchase price be less than the par
      value of the Share, the Administrator shall follow the provisions of the Law.
      The payment of the purchase price shall be made by the Participant at the
      Restricted Share Vesting Date as defined below.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (B)
      Legend

    

    Each
      certificate, if any, for the Restricted Shares shall bear the following
      legend:

    

    “The
      ownership and transferability of this certificate and the shares represented
      hereby are subject to the terms and conditions (including forfeiture) of the
      PowerDsine Ltd. New Amended And Restated Israeli Incentive Plan and a Restricted
      Share Grant Letter entered into between the beneficial owner and PowerDsine
      Ltd.
      Copies of such Plan and Letter are on file in the executive offices of
      PowerDsine Ltd.”

    

    In
      addition, the Restricted Shares shall be subject to restrictions as the Company
      may deem advisable and the Company may cause a legend or legends to be placed
      on
      such certificate or certificates to make appropriate reference to such other
      restrictions.

    

    (C)
      Custody

    

    All
      Restricted Shares and Underlying Shares, and any certificate or certificates
      representing the same, shall be held in the Trustee, until the later of the
      time
      when (i) such shares no longer are considered Restricted Shares and (ii) the
      required Holding Period (if applicable) under the Tax Ordinance has run and
      the
      Participant has, provided in writing to the Company, requested release of the
      Shares. Notwithstanding the above the Trustee shall not release Shares to a
      Participant unless the latter, prior to, or concurrently with, such release,
      provides the Company and the Trustee with evidence, satisfactory in form and
      substance to the Company and the Trustee, that all taxes, if any, required
      to be
      paid upon such release have, in fact, been paid.

    

    

    
      	8.2	
              Restrictions

            

    

    

    The
      Participant or the Trustee, as applicable, as registered holder of the Award
      (the “Holder”)
      shall
      have all rights and privileges of a shareholder as to the Restricted Shares,
      and
      receive dividends or other distributions with respect to the Restricted Shares,
      except that the following restrictions shall apply: 

    

    (A)
      Restricted Shares issued to a Participant or to the Trustee for the benefit
      of a
      Participant, shall be voted by an irrevocable proxy assigned to Mr. / Ms.
      ________, who has been appointed by the Company’s Board of Directors as a
      representative (the “Representative”).

    

    
      	
            	(I)	
              The
                Company’s Board of Directors may, at its discretion, replace the
                Representative from time to time.

            

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

       

    

    
      	
            	(II)	
              Shares
                subject to proxy shall be voted by the Representative on any issue
                or
                resolution brought before the shareholders of the Company in accordance
                with instructions of the Board of Directors of the
                Company.

            

    

    

    
      	
            	(III)	
              Each
                Participant, upon execution of the irrevocable proxy specified above,
                undertakes to hold the Representative harmless from any and all claims
                related or connected to said proxy.

            

    

    

    
      	
            	(IV)	
              The
                Representative shall be indemnified and held harmless by the Company
                against any cost or expense (including attorneys’ fees) reasonably
                incurred by the Representative, or any liability (including any sum
                paid
                in settlement of a claim with the approval of the Company) arising
                out of
                any act or omission to act in connection with the voting of the Shares
                subject to proxy, unless arising out of the Representative’s own fraud or
                gross negligence, to the extent permitted by applicable law. In the
                event
                the Representative shall have indemnification by virtue of other
                functions
                or services he or she performs for the Company or Affiliate (whether
                by
                agreement, insurance policy or decision of the appropriate corporate
                body(ies) of the Company and/or Affiliate) , this indemnification
                shall be
                in addition to any such other
                indemnification.

            

    

    

    (B)
      the
      Participant shall not be entitled to delivery of any of the Restricted Shares
      (whether by transfer to Participant’s brokerage account or by delivery of stock
      certificates) until the applicable vesting period as defined in paragraph 8.3
      has run and upon the satisfaction of all other applicable conditions whereupon
      Participant will only be entitled to the applicable percentage of Restricted
      Shares in accordance with the schedule set forth in the Restricted Share Grant
      Letter (the; "Restricted
      Share Vested Percentage")
      on the
      applicable vesting date in accordance with the schedule set forth in the
      Restricted Share Grant Letter (the: "Restricted
      Share Vesting Date");

    

    (C)
      Restricted Shares may not be sold, pledged, assigned, transferred, or otherwise
      encumbered or disposed of for any reason until the latter of the (i) applicable
      Restricted Share Vesting Date and (ii) the applicable Holding
      Period.

    

    (D)
      all
      Shares distributed as a dividend or distribution, if any, with respect to
      Restricted Shares prior to the applicable Restricted Share Vesting Date shall
      be
      delivered to and held by the Trustee, and subject to the same restrictions
      as
      the shares of Restricted Shares in respect of which the dividend or distribution
      was made; and

    

    (E)
      all
      unvested Restricted Shares shall be forfeited and returned to the Company and
      all rights of the Holder with respect to such Shares shall terminate in their
      entirety on the terms and conditions set forth in Paragraph 8.5.

    

    (F)
      Any
      attempt to dispose of unvested Restricted Share or any interest in such shares
      in a manner contrary to the restrictions set forth in this Plan shall be void
      and of no effect.

    

    For
      the
      avoidance of doubt, the foregoing restrictions shall be in addition to, and
      separate from, the restrictions contained in the Section 102 including, without
      limitation, the restrictions on the Employee’s right to hold the shares directly
      or to sell or otherwise dispose of the shares prior to the expiration of the
      Holding Period.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    
      	8.3	
              vesting
                Period

            

    

    

    Restricted
      Shares shall vest at the dates set forth in the Restricted Share Grant Letter.
      The vesting schedule may be conditioned on the achievement of certain
      performance goals as shall be determined by the Administrator .A Restricted
      Share may be subject to such other terms and conditions on the time(s) when
      it
      may be vested, as the Administrator may deem appropriate. The vesting provisions
      of individual Restricted Shares may vary.

    

    Unless
      otherwise determined by the Administrator, all Restricted Shares Granted shall
      be subject to the continued employment with or service to the Company or
      Affiliate by the Participant, from the date the Restricted Shares are Granted
      until the end of the last Restricted Share Vesting Dates set forth in the
      Restricted Share Grant Letter. Vesting shall cease upon the date Participant’s
      Employment terminates for any reason unless otherwise determined by the
      Administrator in its sole discretion.

    

    
      	8.4	
              lapse
                of restriction

            

    

    

    The
      restrictions set forth in Paragraph 8.2 with respect to Restricted Shares shall
      apply for a period beginning on the Date of Allocation specified in the
      Restricted Share Grant Letter and ending on the applicable Restricted Share
      Vesting Date. For the avoidance of doubt, no vesting under this Plan shall
      entitle the Participant to take possession of any Shares or become the
      registered holder thereof until the Holding Period has run (if applicable).
      

    

    As
      soon
      as administratively practicable following the applicable Restricted Share
      Vesting Dates, and upon the satisfaction of all other applicable conditions
      as
      to such Vested Percentage of Restricted Shares and without any notification
      by
      the Participant, the Company shall, at its option, (i) deliver or cause to
      be
      delivered to the Trustee, or if the Holding Period has run and the Participant
      has requested release of the Shares, the Participant a certificate or
      certificates for the applicable Restricted Shares which shall not bear the
      Legend or (ii) transfer or arrange to have transferred the vested Shares to
      a
      brokerage account of the Trustee, or if the Holding Period has run and the
      Participant has requested release of the shares released from trust free of
      any
      Company-imposed transfer restrictions. Notwithstanding the above the Company
      shall not deliver Shares to a Participant unless the latter, prior to, or
      concurrently with, such release, provides the Company and the Trustee with
      evidence, satisfactory in form and substance to the Company and the Trustee,
      that all taxes, if any, required to be paid upon such release have, in fact,
      been paid.

    

    
      	8.5	
              Forfeiture

            

    

    

    At
      the
      time of the Participant’s Termination of Employment for any or no reason, all
      unvested Restricted Shares shall be forfeited by the Holder as of the date
      of
      termination unless otherwise determined by the Administrator in its sole
      discretion. In the event of any such forfeiture, all such forfeited Shares
      of
      Restricted Share shall become the property of the Company and any certificate
      or
      certificates representing such Restricted Shares shall be returned immediately
      to the Company at no cost, all in accordance with the Law.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    
      	9.	
              Restricted
                Shares units

            

    

    

    
      	9.1	
              Vesting

            

    

    

    Restricted
      Share Units shall vest at the dates set forth in the Restricted Share Unit
      Grant
      Letter (the “Units Vesting
      Dates”).
      The
      vesting schedule may be conditioned on the achievement of certain performance
      goals as shall be determined by the Administrator. The vesting provisions of
      individual Restricted Share Units may vary

    

    Unless
      otherwise determined by the Administrator, all Restricted Share Units Granted
      shall be subject to the continued employment with or service to the Company
      or
      Affiliate by the Participant, from the date the Restricted Share Unit is Granted
      until the end of the last Units Vesting Dates set forth in the Restricted Share
      Unit Grant Letter.

    

    Vested
      Restricted Share Units included in the Award shall be settled in Shares of
      the
      Company’s Share on a one-for-one basis. As soon as administratively practicable
      following each of the Units Vesting Dates specified in the Restricted Share
      Unit
      Grant Letter and without any notification by the Participant, the Company shall
      deliver the Trustee for the benefit of the Participant or if the Holding Period
      has run and the Participant has requested release of the Shares, the Participant
      a certificate, representing a number of Shares equal to the number of vested
      Restricted Share Units. Notwithstanding the above the Company shall not release
      Shares to a Participant unless the latter, prior to, or concurrently with,
      such
      release, provides the Company and the Trustee with evidence, satisfactory in
      form and substance to the Company and the Trustee, that all taxes, if any,
      required to be paid upon such release have, in fact, been paid.

     

    
      	9.2	
              selling
                shares

            

    

    

    The
      Trustee shall act with respect to the Underlying Shares issued upon vesting
      of
      RSU as follows: upon a written request of the Participant the trustee shall
      release and/or sell from the trust Underlying Shares, on behalf of the
      Participant, by executing and delivering to the Company such instrument(s)
      as
      the Company may require, giving due notice of such release to such Participant.
      Notwithstanding the above the Trustee shall not release such Shares to such
      Participant unless the latter, prior to, or concurrently with, such release,
      provides the Trustee with evidence, satisfactory in form and substance to the
      Trustee, that all taxes, if any, required to be paid upon such release have,
      in
      fact, been paid.

    

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    

    
      	9.3	
              restrictions

            

    

    

    Notwithstanding
      any other provision of this Plan, if the Administrator shall at any time
      determine that any Consent (as hereinafter defined) is necessary or desirable
      as
      a condition of, or in connection with, the issuance or transfer of Shares or
      the
      taking of any other action in connection with the Restricted Share Unit Grant
      Letter or the Plan, then such action shall not be taken, in whole or in part,
      unless and until such Consent shall have been effected or obtained to the full
      satisfaction of the Administrator, or the Administrator may require that such
      action be taken only to the extent and in such manner as to make such Consent
      unnecessary.

    

    For
      purposes of this Section 9.3, the term "Consent" means (a) any and all listings,
      registrations or qualifications in respect thereof upon any securities exchange
      or under any foreign or local law, rule or regulation, (b) any and all written
      agreements and representations by the Participant with respect to the
      disposition of Shares, or with respect to any other matter, which the
      Administrator shall deem necessary or desirable to comply with the terms of
      any
      such listing, registration or qualification or to obtain an exemption from
      the
      requirement that any such listing, qualification or registration be made and
      (c)
      any and all consents, clearances and approvals by any governmental or other
      regulatory bodies in respect of any action taken or to be taken under the Plan
      or Restricted Share Unit Grant Letter.

    

    
      	9.4	
              No
                Rights as a shareholder

            

    

    

    Neither
      the Trustee nor the Participant or any person succeeding to the Participant's
      rights hereunder shall have any rights as a shareholder with respect to any
      shares subject to the RSU until the date of the issuance of a stock certificate
      to the trustee on behalf of the Participant for such Shares or to the
      Participant, as the case may be.

    

    
      	9.5	
              Forfeiture

            

    

    

    Notwithstanding
      any contrary provision of this Plan, the balance of the Restricted Share Units
      that have not vested pursuant to paragraph 9.1 at the time of the Participant’s
      Termination of Employment for any or no reason will be forfeited and
      automatically transferred to and reacquired by the Company at no cost to the
      Company, all in accordance with the Law.

    

    

    
      	10.	
              Termination
                of Employment

            

    

    

    
      	10.1	
              Termination
                of Employment

            

    

    

    If
      a
      Participant ceases to be an employee, director, or officer of the Company or
      Affiliate for any reason (as defined above - Termination of Employment) other
      than death, Retirement, Disability or Cause, then (A) any vested but unexercised
      Options on the date of Termination of Employment (as shall be determined by
      the
      Company or Affiliate, in its sole discretion), Allocated on the Participant’s
      behalf (“Exercisable
      Options”)
      may be
      exercised, if not previously expired, not later than the earlier of (i) 60
      days
      after the date of Termination of Employment; or (ii) the Term of the Options
      and
      (B) any rights upon vested Restricted Share or vested Restricted Share Units
      shall be delivered to Participant but only to the extent that they were vested
      within the date his employment terminates.

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

       

    

    All
      other
      Granted Awards for the benefit of Participant shall expire upon the date of
      Termination of Employment.

    

    If
      during
      the sixty-day period after Termination of Employment, the Employee is subject
      to
      a “blackout period”, pursuant to the Company's insider trading policy or
      otherwise, during which, the Employee may not sell Underlying Shares (the
“Blackout
      Period”),
      then
      the Employee (i) may not sell Underlying Shares during the Blackout Period;
      (ii)
      may exercise any unexercised Options, which were vested on the date of
      Termination of Employment, until the later of (a) twenty-five (25) days after
      the Blackout Period is lifted; or (b) sixty days from the date of Termination
      of
      Employment.

    

    
      	10.2	
              Termination
                for Cause

            

    

    

    In
      the
      event of Termination of Employment of a Participant for Cause, than (A) the
      Participant's right to exercise any unexercised Options, Granted to such
      Participant, whether vested or not on the date of Termination of Employment,
      shall cease as of such date of Termination of Employment, and the Options shall
      thereupon expire and (B) any unvested Restricted Shares or unvested Restricted
      Share Units shall terminate and expire on the day the Participant is notified
      of
      his dismissal or on such earlier date as the Administrator may
      determine.

    

    If
      subsequent to the Participant's Termination of Employment, but prior to the
      exercise of Options Granted to such Participant, the Administrator determines
      that either prior or subsequent to the Participant's Termination of Employment,
      the Participant engaged in conduct which would constitute Cause, then the
      Participant’s right to exercise the Options Granted to such Participant shall
      immediately cease upon such determination and the Options shall thereupon
      expire.

    

    The
      determination by the Administrator as to the occurrence of Cause shall be final
      and conclusive for all purposes of this Plan.

    

    
      	10.3	
              Termination
                by Reason of Death, Retirement, or
                Disability

            

    

    

    (A) Death.
      If
      Termination of Employment is by reason of death of the Participant, than (A)
      his/her estate, personal representative or beneficiaries may, exercise the
      Participant’s Options, to the extent it was vested within the 30th day after the
      Participant’s death, at any time but not later than the first to occur of: (i)
      two (2) years following Participant’s death; or (ii) the end of the Term of the
      Options and (B) any rights upon vested Restricted Shares or vested Restricted
      Share Units shall be delivered to Participant’s estate, personal representative
      or beneficiaries but only to the extent it was vested within the 30th day after
      employment terminates.

     

    (B) Disability
      and Retirement.
      If
      Termination of Employment is by reason of Retirement or Disability of the
      Participant, the Participant than (A) may exercise any portion of the Options
      which have vested within 30 days after the date of Retirement or Disability,
      at
      any time but not later than the first to occur of: (i) one (1) year after the
      date of Retirement and two (2) years after the date of Disability, as the case
      may be; or (ii) the end of the Term of the Options and (B) shall be entitled
      to
      any rights upon vested Restricted Shares or vested Restricted Share Units to
      be
      delivered to Participant’s estate, personal representative or beneficiaries but
      only to the extent it was vested within the 30th day after employment
      terminates. 

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

       

    

    All
      other
      Granted Options for the benefit of a Participant and which have not vested
      on
      the date of Disability or Retirement, as the case may be, shall expire upon
      the
      date of Retirement or Disability, as applicable

    

    
      	10.4	
              Exceptions
                

            

    

    

    In
      special circumstances, pertaining to the Termination of Employment of a certain
      Participant, the Administrator may in its discretion decide to extend any of
      the
      periods stated above in Sections 10.1-10.3.

    

    
      	10.5	
              Transfer
                of Employment or Service 

            

    

    

    Subject
      to the receipt of appropriate approvals from the Israeli Tax Authorities, a
      Participant’s right to Awards that were Granted to him or her under this Plan,
      shall not be terminated or expire or forfeited solely as a result of the fact
      that the Participant’s employment or service as an employee, officer or director
      changes from the Company to an Affiliate or vice versa. 

    

    
      	11.	
              Trust
                Arrangement and Holding
                Period

            

    

    

    
      	11.1	
              Trustee
                Tax Tracks

            

    

    

    If
      the
      Company elects to Grant Awards through (i) the Capital Gains Track Through
      a
      Trustee, or (ii) the Income Tax Track Through a Trustee, then, in accordance
      with the requirements of Section 102, the Company shall appoint a Trustee who
      will hold in trust on behalf of each Participant the Allocated Awards and the
      Underlying Shares issued upon (i) exercise of Options (ii) vesting of Restricted
      Shares and (iii) vesting of Restricted Share Units in trust on behalf of each
      Participant. 

    

    The
      Holding Period for the Awards will be as follows:

    

    
      	
            	(A)	
              The
                Capital Gains Tax Track Through a Trustee
                -
                if the Company elects to Allocate the Awards according to the provisions
                of this track, then the Holding Period will be 24 months from the
                date of
                Allocation; or such period as may be determined in any amendment
                of
                Section 102 or the Section 102
                Rules.

            

    

    

    
      	
            	(B)	
              Income
                Tax Track Through a Trustee
                -
                if the Company elects to Allocate Awards according to the provisions
                of
                this track, then the Holding Period will be 12 months from the date
                of
                Allocation; or such period as may be determined in any amendment
                of
                Section 102.

            

    

    

    Subject
      to Section 102 and the Rules, Participants shall not be able to receive from
      the
      Trustee, nor shall they be able to sell or dispose of Underlying Shares before
      the end of the applicable Holding Period. If a Participant sells or removes
      the
      Underlying Shares form the Trustee before the end of the applicable Holding
      Period (“Breach”),
      the
      Participant shall pay all applicable taxes imposed on such Breach by Section
      7
      of the Rules.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    In
      the
      event of a distribution of rights, including an issuance of bonus shares, in
      connection with Awards originally Allocated (the "Additional
      Rights"),
      all
      such Additional Rights shall be Allocated and/or issued to the Trustee for
      the
      benefit of Participants, and shall be held by the Trustee for the remainder
      of
      the Holding Period applicable to the Awards originally Allocated. Such
      Additional Rights shall be treated in accordance with the provisions of the
      applicable Tax Track.

    

    

    
      	11.2	
              Income
                Tax Track Without a Trustee 

            

    

    

    If
      the
      Company elects to Allocate Awards according to the provisions of this track,
      then the Awards will not be subject to a Holding Period. However, upon exercise
      or vesting of Awards under this Tax Track, the Trustee shall hold Underlying
      Shares for the benefit of the Participant until the sale or transfer from the
      Trustee of such Shares and the full payment of all required taxes under Rule
      7.

    

    
      	11.3	
              Track
                Selection 

            

    

    

    The
      Company, in its sole discretion, shall elect under which of the above three
      Tax
      Tracks each Award is Granted and shall notify the Participant in the Grant
      Letter, which Tax Track applies to each Granted Award.

    

    
      	11.4	
              Concurrent
                Conditions

            

    

    

    The
      Holding Period, if any, is in addition to any vesting period as specified in
      this Plan. The Holding Period and vesting period may run concurrently, but
      neither is a substitute for the other, and each are independent terms and
      conditions for Awards
      Granted.

    

    
      	11.5	
              Trust
                Agreement 

            

    

    

    The
      terms
      and conditions applicable to the trust relating to the Tax Track selected by
      the
      Company, as appropriate, shall be set forth in an agreement signed by the
      Company and the Trustee (the “Trust
      Agreement”).

    

    
      	12.	
              Term
                of Shares Held In Trust

            

    

    

    No
      Underlying Shares or Additional Rights issued by the Company to the Trustee,
      shall be held by the Trustee on behalf of the Participant for a period longer
      than ten (10) years. The Administrator shall instruct the Trustee as to the
      transfer of these Shares.

    

    
      	13.	
              Rights
                as a Shareholder

            

    

    

    Unless
      otherwise specified in the Plan, a Participant shall not have any rights as
      a
      shareholder with respect to Shares including Restricted Shares issued under
      this
      Plan, until such time as the Shares shall be registered in the name of the
      Trustee for the benefit of the Participant or in the name of the Participant,
      as
      the case may be, in the Company’s register of shareholders. For
      the
      avoidance of doubt,
      any
      rights as a shareholder with respect to Restricted Shares shall be in accordance
      with Section 8 to this Plan. 

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

       

    

    
      	14.	
              No
                Special Employment Rights

            

    

    

    Nothing
      contained in this Plan or any Award Grant Letter shall confer upon any
      Participant any right with respect to the continuation of employment by or
      service to the Company or an Affiliate or to interfere in any way with the
      right
      of the Company or an Affiliate to terminate such employment or service or to
      increase or decrease the compensation of the Participant with respect to such
      employment or service. 

    

    
      	15.	
              Restrictions
                on Sale of Options and Shares

            

    

    

    
      	15.1	
              Awards

            

    

    

    (A) Awards
      Granted under this Plan: (i) are not transferable by Participants other than
      by
      will or the laws of descent and during the lifetime of a Participant may be
      exercised only by the Participant; and (ii) whether or not fully paid, may
      not
      be sold, assigned,
      transferred, pledged, encumbered, hypothecated or otherwise disposed of (each,
      a
“Disposition”);
      and
      (iii) are not assignable by operation of law, and shall not be subject to
      execution, attachment or similar process.

    

    (B) During
      the lifetime of a Participant, each and all of such Participant’s rights to
      receive or purchase the Underlying Shares may be received or exercised only
      by
      the Participant.

    

    (C) Any
      attempted Disposition contrary to the provisions of this Plan, and the levy
      of
      any execution, attachment or similar process upon an Award, whether directly
      or
      indirectly, shall be null and void.

    

    
      	15.2	
              Mergers
                

            

    

    

    In
      the
      event of a Merger Transaction, then, subject to obtaining the applicable
      approvals of the Israeli Tax Authorities, if necessary the Administrator in
      its
      sole discretion, shall decide:

    

    
      	
            	(A)	
              if
                and how the vesting period of unvested Awards shall be canceled,
                replaced
                or accelerated; 

            

    

    

    
      	
            	(B)	
              if
                and how vested Options (including Options with respect to which the
                vesting period has been accelerated ) shall be exercised, replaced
                and/or
                sold by the Company or the Trustee on the behalf of Participants;
                and

            

    

    

    
      	
            	(C)	
              how
                Underlying Shares held by the Trustee on behalf of Participants shall
                be
                replaced and/or sold by the Trustee on behalf of the
                Participant.

            

    

    

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    

    
      	15.3	
              acceleration
                Provision

            

    

    

    The
      Administrator, in its sole discretion, may decide to add a provision in certain
      Awards Grant Letters, according to which in case of a Merger, all or some of
      the
      unvested Awards, shall automatically accelerate.

    

    
      	15.4	
              Lock
                Up

            

    

    

    Notwithstanding
      the Holding Period, in any registration of the Company’s shares on any stock
      exchange, at the request of the underwriter, the Administrator may determine
      that the Underlying Shares issued pursuant to the exercise of Options or issued
      upon vesting of Restricted Shares or Restricted Share Units may be subject
      to a
      lock-up period of up to180 days, or such longer period of time as may be
      recommended by the Company’s Board of Directors, during which time Participants
      shall not be allowed to sell Shares.

    

    
      	15.5	
              Rights
                of Ordinary Shares

            

    

    

    Unless
      specifically restricted by this Plan and/or the provisions of the Award Grant
      Letter, the Restricted Shares and the Underlying Shares or any other securities
      of the Company so issuable, shall have the rights set forth in the Articles,
      and
      shall be subject to the obligations set forth in the Articles for holders of
      the
      same class of securities. Upon the registration of a Participant in the Share
      Register, the Participant shall be entitled to receive a copy of the Articles
      at
      his/her request.

    

    
      	16.	
              Voting

            

    

    

    Each
      of
      the Underlying Shares shall entitle the holder thereof to one vote at
      shareholders meetings of the Company. The Trustee shall forward any notice
      regarding shareholders meetings to the last address
      of the
      Participants provided to the Trustee by the Company. A Participant, who wishes
      to exercise his/her right to vote at such meeting, shall send a letter to the
      Trustee at least two (2) working days before the meeting. The Trustee shall
      issue a power of attorney to such Participant, enabling the Participant to
      vote
      the number of Underlying Shares held for him/her in trust

    

    
      	17.	
              Tax
                Matters

            

    

    

    This
      Plan
      shall be governed by, and shall conform with and be interpreted so as to comply
      with, the requirements of Section 102 and any written approval from the Israeli
      Tax Authorities. All tax consequences under any applicable law (other than
      stamp
      duty) which may arise from the Grant or Allocation of Awards, from the exercise
      or vesting thereof or from the holding or sale of Underlying Shares (or other
      securities issued under the Plan) by or on behalf of the Participant, shall
      be
      borne solely by the Participant. The Participant shall indemnify the Company
      and/or Affiliate, as the case may be, and hold them harmless, against and from
      any liability for any such tax or any penalty, interest or
      indexing.

    

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    
      	18.	
              Withholding
                Taxes

            

    

    

    Whenever
      an amount with respect to withholding tax relating to Awards Granted to a
      Participant and/or Underlying Shares issued upon exercise or vesting, is due
      from the Participant and/or the Company and/or an Affiliate, the Company and/or
      an Affiliate shall have the right to demand from a Participant such amount
      sufficient to satisfy any applicable withholding tax requirements related
      thereto, and whenever Shares or any other non-cash assets are to be delivered
      pursuant to the exercise of an Award, or transferred thereafter, the Company
      and/or an Affiliate shall have the right to require the Participant to remit
      to
      the Company and/or to the Affiliate, or to the Trustee an amount in cash
      sufficient to satisfy any applicable withholding tax requirements related
      thereto. If such amount is not timely remitted, the Company and/or the Affiliate
      shall have the right to withhold or set-off (subject to Law) such Shares or
      any
      other non-cash assets pending payment by the Participant of such
      amounts.

    

    Until
      all
      taxes have been paid in accordance with Rule 7 of the Section 102 Rules, Awards
      and/or Underlying Shares may not be sold, transferred, assigned,
      pledged, encumbered, or otherwise willfully hypothecated or disposed of, and
      no
      power of attorney or deed of transfer, whether for immediate or future use
      may
      be validly given. Notwithstanding the foregoing, the Awards
      and/or Underlying Shares may be validly transferred in accordance with Section
      20 below, provided that the transferee thereof shall
      be
      subject to the provisions of Section 102 and the Section 102 Rules as would
      have
      been applicable to the deceased Participant were he or she to have
      survived.

    

    
      	19.	
              No
                Transfer of Awards by
                trustee

            

    

    

    The
      Trustee is prohibited from transferring Awards to any third party, including
      a
      Participant, except in accordance with instructions received from the
      Administrator.

    

    
      	20.	
              Transfer
                of Rights Upon Death

            

    

    

    No
      transfer of any right to an Award or Underlying Share issued upon the exercise
      or vesting by will or by the laws of descent shall be effective to bind the
      Company unless the Company shall have been furnished with the following signed
      and notarized documents: 

    

    
      	
            	(A)	
              A
                written request for such transfer and a copy of the legal documents
                creating and confirming the right of the person acting with respect
                to the
                Participant’s estate and of the
                transferee;

            

    

    

    
      	
            	(B)	
              A
                written consent by the transferee to pay any amounts in connection
                with
                the Awards and Underlying Shares any payment due according to the
                provisions of the Plan and otherwise abide by all the terms of the
                Plan;
                and

            

    

    

    
      	
            	(C)	
              any
                such other evidence as the Administrator may deem necessary to establish
                the right to the transfer of the Award or Underlying Share issued
                upon the
                exercise thereof and the validity of the
                transfer.

            

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    
      	
              21.

            	
              No
                Right of Others to awards

            

    

    

    Subject
      to the provisions of this Plan, no person other than a Participant shall have
      any right with respect to Awards Granted to the Participant under this Plan.
      

    

    
      	22.	
              Expenses
                and Receipts

            

    

    

    The
      expenses incurred in connection with the administration and implementation
      of
      this Plan (including any applicable stamp duty) shall be borne by the
Company.
      Any
      proceeds received by the Company in connection with the exercise of any Option
      may be used for general corporate purposes.

    

    
      	23.	
              Required
                Approvals

            

    

    

    The
      Plan
      is subject to the receipt of all approvals required under Section
      102 and
      the Law.

    

    
      	24.	
              Governing
                Law

            

    

    

    This
      Plan
      and all
      documents delivered or executed by the Company or an Affiliate in connection
      herewith shall be governed by, construed and administered in accordance with
      the
      Israeli law. The district courts of Tel Aviv-Jaffa shall be the appropriate
      and
      exclusive venue for any disputes arising under and in connection with this
      Plan
      and any and all documents delivered or executed in connection
      hereto.

    

    
      	25.	
              Treatment
                of Participants

            

    

    

    The
      Company and/or an Affiliate are under no obligation to treat Participants in
      a
      uniform manner. Subject to the requirements of the Israeli law resulting from
      the Company’s election of a particular Tax Track, the terms of each Award may
      differ, in the sole discretion of the Administrator, from other Awards Granted
      under this Plan at the same time, or at any other time. The Administrator may
      also grant more than one (1) Award to a given Participant during the term of
      this Plan, either in addition to, or in substitution for, one or more Awards
      previously Granted to that Participant.

    

    
      	26.	
              No
                Conflicts 

            

    

    

    In
      the
      event of
      any
      conflict between the terms of the Plan and the Award Grant Letter, the Plan
      shall prevail.

    

    
      	27.	
              Participant
                Undertakings

            

    

     

    By
      entering into this Plan,
      any
      Participant who is a resident of Israel shall (1) agrees and acknowledges that
      he or she have received and read the Plan, and the Award Grant Letter; (2)
      undertake all the provisions set forth in: Section 102 (including provisions
      regarding the applicable Tax Track that the Company has selected), the 102
      Rules, the Plan, the Award Grant Letter and the Trust Agreement; and (3) subject
      to the provisions of Section 102 and the Rules, undertake not to sell or release
      the underlying Shares from trust before the end of the Holding Period (if any).
      

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    

    
      	28.	
              Enforceability

            

    

    

    The
      provisions of this Plan shall be binding upon the Participant, his/her estate,
      personal representatives, heirs and beneficiaries.

    

    
      	29.	
              Notices

            

    

     

    Each
      notice relating to this Plan and any Award Grant Letter issued hereunder shall
      be in writing and delivered in person or by first class mail, postage prepaid,
      to the address last known of the person to be notified. Each notice shall be
      deemed given on the date it is received. If delivered in person, it shall be
      deemed received upon such delivery. If sent by mail, it shall be deemed received
      no later than five (5) business days following its mailing. The Company’s
      address for notice purposes is: 

    

    PowerDsine
      Ltd.

    Attn:
      Vice President for Human Resources and/or Chief Financial Officer

    1
      Hanagar
      Street, P.O.B 7220

    Hod
      Hasharon 45421

    Israel

    

    
      
        
        

      

      
        23

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