Document:

istr-ex102_15.htm

 

Exhibit 10.2

TIB - THE INDEPENDENT BANKERSBANK

 

PROMISSORY NOTE

(Revolving) 

(Loan No. 91425)

 

 

	
$20,000,000.00
	
 
	
June 27, 2016

FOR VALUE RECEIVED, the undersigned, INVESTAR HOLDING CORPORATION ("Maker"), promises to pay to the order of TIB – THE INDEPENDENT BANKERSBANK ("Payee") the maximum principal sum of Twenty Million and No/100 Dollars ($20,000,000.00), or so much thereof as shall be advanced hereunder at or  before the maturity of this Note, with interest on the unpaid balance outstanding from time to time at the rate or rates specified below, both principal and interest payable as provided below in lawful money of the United States of America at the address of Payee set forth below or at such other place as from time to time may be designated by the holder of this Note.

I.    Interest Rates and Payments

Prior to default or maturity, the unpaid principal of this Note from time to time outstanding shall bear interest at the fixed rate (“Rate”) of interest per annum equal to the rate reported in the Credit Markets section (or similar section) of The Wall Street Journal as the U.S. “Prime Rate” on the date hereof; provided, however, that on June 27, 2017 (or the next business day if such day falls on a Saturday, Sunday, bank holiday, or other non- banking day), the Rate shall be adjusted to a fixed rate of interest equal to the Rate on such date; and, provided further, that in no event shall the Rate exceed the maximum rate permitted under applicable law (“Maximum Rate”). All interest accruing under this Note shall be calculated on the basis of a 360-day year applied to the actual number of days elapsed.

Quarterly payments of interest on the unpaid principal balance of this Note shall be due and payable commencing on September 27, 2016, and continuing on the same day of each calendar quarter thereafter through and until June 27, 2018 (“Maturity Date”), on which date all unpaid principal of and accrued interest on this Note shall be due and payable. Any payment received later than ten (10) days from the due date thereof must be accompanied by a late fee payment in the amount of five percent (5%) of the amount of such payment.   Any partial prepayments of principal shall be applied to installments thereof in the inverse order of maturity.

All advances hereunder shall be in accordance with the Loan Agreement (defined below). Maker shall have the right to prepay, without penalty, at any time and from time to time prior to maturity, all or any part of the unpaid principal balance of this Note and all or any part of the unpaid interest accrued to the date of such prepayment, provided that any such principal thus paid is accompanied by accrued interest on such principal. Any partial prepayments of principal shall be applied to installments thereof in the inverse order of maturity unless otherwise agreed to in writing by Lender. Maker may borrow, repay, and reborrow up to the principal face amount of this Note; provided, however, that (1) such borrowings or reborrowings be in accordance with the requirements in the Loan Agreement  (defined  below) between  Maker  and  Payee  of  even  date  herewith, and (2) at no time shall the total outstanding principal amount hereunder exceed the face value of this Note. It is contemplated that by reason of prepayments hereon there may be times when no indebtedness is owing hereunder; but, notwithstanding such occurrences,  this Note  shall  remain  valid  and  shall  be  in  full  force and effect subsequent to each such occurrence until the Maturity Date.

All principal and interest which is matured or otherwise past due under this Note shall bear interest at the Maximum Rate, or, if no such rate is designated under applicable law, at the rate of eighteen percent (18%) per annum.

 

PROMISSORY NOTE – INVESTAR HOLDING CORPORATION – #91425 - Page 1

 

II.    Security

This Note is secured by, Inter alia, a Pledge Agreement (the "Pledge Agreement") of even date herewith from Maker to Payee, to which Pledge Agreement reference is made for a description of the property covered thereby and the nature and extent of the rights and powers of the holder of this Note in respect of such property.

III.    Right to Accelerate Upon Default

The holder of this Note shall have the option of declaring the principal balance hereof and the interest accrued hereon to be immediately due and payable upon the occurrence of an Event of Default under the Letter Loan Agreement (“Loan Agreement”) of even date herewith, between Maker and Payee (this Note, the Pledge Agreement, the Loan Agreement, and any other documents relating to the transaction evidenced hereby are called the "Loan Documents" below), and the continuance of such default after the notice of default and expiration of the cure period as provided for therein, if any.

IV.    Waiver of Conditions and Defenses to Liability

Maker and any other party who is or becomes liable to pay all or any part of this Note, or who grants any lien or security interest to secure all or any part of this Note (each called an "other liable party" below), including but not limited to any drawer, acceptor, endorser, guarantor, surety or accommodation party, severally waive presentment for payment, demand, notice of demand and of dishonor and nonpayment of this Note, notice of intention to accelerate the maturity of this Note, protest and notice of protest, diligence in collecting, and the bringing of suit against any other party, except as may be otherwise provided in the notice and right to cure provisions of the Loan Agreement.

Further, other than those written agreements between Maker and the then holder of this Note, Maker and any other liable party severally waive any notice of or defense based upon any agreement or consent of the holder of this Note made or given from time to time, before or after maturity, to any of the following: the acceleration, renewal or extension of this Note; a change in the time or manner of payments required by this Note; a change in the rates of interest specified in this Note; acceptance or surrender of security; a substitution of security or subordination, amendment or release of security; an addition or release of any other liable party; changes of any sort whatever in the terms of payment of this Note or in the manner of doing business with Maker; and any settlement or compromise with Maker or any other liable party on such terms as the holder of this Note may deem appropriate in its sole and absolute discretion.

The holder of this Note may apply all moneys received from Maker or others, or from any security (whether held under a security instrument or not), in such manner upon the indebtedness evidenced or secured by any Loan Documents (whether then due or not) as such holder may determine to be in its best interest, without in any way being required to marshal assets or to apply all or any part of such moneys upon any particular part of such indebtedness. The holder of this Note is not required to retain, hold, protect, exercise due care with respect to, perfect security interests in or otherwise assure or safeguard any security for this Note, and no failure by the holder of this Note to do any of the foregoing and no exercise or failure to exercise by such holder of any other right or remedy shall in any way affect any of Maker's or any other liable party's obligations hereunder or under other Loan Documents or affect any security or give Maker or any other liable party any recourse against the holder of this Note except that, notwithstanding the foregoing, the holder of this Note shall comply with all obligations of a secured party under Article 9 of the Uniform Commercial Code as adopted, from time to time, in the State of Texas and Maker shall be entitled to any remedies therein provided for in the event that the holder of this Note fails to so comply.

V.    Usury Savings Provision

It is the intent of Maker and Payee in the execution of this Note and all other Loan Documents to contract in strict compliance with applicable usury law. In furtherance thereof, Maker and Payee stipulate and agree that none of the terms and provisions contained in this Note, or in any other instrument executed in connection herewith, shall ever be construed to create a contract to pay for the use, forbearance or detention of money, interest at a rate in excess of the Maximum Rate. Neither Maker nor any guarantors, endorsers or other parties now or hereafter becoming liable for payment of this Note shall ever be obligated or required to pay interest on

 

PROMISSORY NOTE – INVESTAR HOLDING CORPORATION – #91425 - Page 2

 

this Note at a rate in excess of the Maximum Rate, and the provisions of this paragraph shall control over all other provisions of this Note and any other Loan Documents now or hereafter executed which may be in apparent conflict herewith. Payee expressly disavows any intention to charge or collect excessive unearned interest or finance charges in the event the maturity of this Note is accelerated. If the maturity of this Note shall be accelerated for any reason or if the principal of this Note is paid prior to the end of the term of this Note, and as a result thereof the interest received for the actual period of existence of the loan evidenced by this Note exceeds the applicable maximum lawful rate, the holder of this Note shall credit the amount of such excess against the principal balance of this Note then outstanding and thereby shall render inapplicable any and all penalties of any kind provided by applicable law as a result of such excess interest; provided, however, that if the principal hereof has been paid in full, such excess shall be refunded to Maker. If the holder of this Note shall receive money (or anything else) which is determined to constitute interest and which would increase the effective interest rate on this Note or the other indebtedness secured by the Loan Documents to a rate in excess of that permitted by applicable law, the amount determined to constitute interest in excess of the lawful rate shall be credited against the principal balance of this Note then outstanding or, if the principal balance has been paid in full, refunded to Maker, in which event any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. If the holder of this Note shall not actually receive, but shall contract for, request or demand, a payment of money (or anything else) which is determined to constitute interest and which would increase the effective interest rate contracted for or charged on this Note or the other indebtedness evidenced or secured by the Loan Documents to a rate in excess of that permitted by applicable law, the holder of this Note shall be entitled, following such determination, to waive or rescind the contractual claim, request or demand for the amount determined to constitute interest in excess of the lawful rate, in which event any and all penalties of any kind under applicable law as a result of such excess interest shall be inapplicable. By execution of this Note Maker acknowledges that Maker believes the loan evidenced by this Note to be non-usurious and agrees that if, at any time, Maker should have reason to believe that such loan is in fact usurious, Maker will give the holder of this Note notice of such condition and Maker agrees that the holder shall have sixty (60) days in which to make appropriate refund or other adjustment in order to correct such condition if in fact such exists. Additionally, if, from any circumstance whatsoever, fulfillment of any provision hereof or any other Loan Documents shall, at the time fulfillment of such provision be due, involve transcending the Maximum Rate then, ipso facto, the obligation to be fulfilled shall be reduced to the Maximum Rate. The term "applicable law" as used in this Note shall mean the laws of the State of Texas or the laws of the United States, whichever laws allow the greater rate of interest, as such laws now exist or may be changed or amended or come into effect in the future.

VI.    Miscellaneous

Should the indebtedness represented by this Note or any part thereof be collected at law or in equity or through any bankruptcy, receivership, probate or other court proceedings or if this Note is placed in the hands of attorneys for collection after default, Maker and all endorsers, guarantors and sureties of this Note jointly and severally agree to pay to the holder of this Note in addition to the principal and interest due and payable hereon all the costs and expenses of the holder in enforcing this Note including, without limitation, reasonable attorneys' fees and legal expenses.

This Note and the rights, duties and liabilities of the parties hereunder or arising from or relating in any way to the indebtedness evidenced by this Note or the transaction of which such indebtedness is a part shall be governed by and construed in accordance with the law of the State of Texas and the law of the United States applicable to transactions within such State.

No amendment of this Note shall be binding unless expressed in a writing executed by Maker and the holder of this Note.

Maker certifies, represents, and warrants to Payee that the proceeds hereof are to be used for a commercial purpose and not for personal, family, household, or agricultural purposes.

THE PARTIES HERETO VOLUNTARILY AND KNOWINGLY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER PARTY ON ANY MATTER WHATSOEVER ARISING OUT OF, IN CONNECTION WITH, OR RELATED TO ANY OF THE LOAN DOCUMENTS.

 

PROMISSORY NOTE – INVESTAR HOLDING CORPORATION – #91425 - Page 3

 

THIS NOTE AND ALL OTHER DOCUMENTS AND INSTRUMENTS EXECUTED PURSUANT HERETO OR IN CONNECTION HEREWITH AND THE TRANSACTIONS CONTEMPLATED HEREBY ARE MADE AND PERFORMABLE IN DALLAS COUNTY, TEXAS AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. MAKER IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY TEXAS OR FEDERAL COURT SITTING IN  DALLAS COUNTY, TEXAS OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, AND MAKER HEREBY AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY TEXAS OR FEDERAL COURT SITTING IN DALLAS COUNTY, TEXAS (OR SUCH OTHER COUNTY IN TEXAS) MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO MAKER AT THE ADDRESS INDICATED BELOW, AND SERVICE SO MADE SHALL BE COMPLETE FIVE DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.

 

	
 
	
MAKER:

	
Maker's Address:
	
 

	
 
	
INVESTAR HOLDING CORPORATION,

	
7244 Perkins Road
	
a Louisiana corporation

	
Baton Rouge, LA 70808
	
 

	
By:
	
 

	
 
	
John J. D’Angelo

	
 
	
President and Chief Executive Officer

 

 

 

 

 

 

Payee's Address:

TIB - THE INDEPENDENT BANKERSBANK

P. O. Box 560528

Dallas, TX 75356-052nvcr-ex101_6.htm

Exhibit 10.1

NOVOCURE LIMITED 

Employee share purchase PLAN

Israeli Subplan

	
1.
	
General

	
1.1
	
This is the Israeli Subplan (the “Subplan”) to the Novocure Limited (the “Company”) Employee Share Purchase Plan (as amended and restated, the “Plan”).
	
 

	
1.2
	
The provisions specified hereunder apply only to Participants who are or are deemed to be residents of the State of Israel for tax purposes or are otherwise subject to taxation in Israel with respect to the Shares (the “Israeli Participants”).
	
 

	
1.3
	
This Subplan applies with respect to purchase rights granted under the Plan to Israeli Participants. The purpose of this Subplan is to provide a method whereby employees of an Employer who satisfy the eligibility provisions under the Plan and are Israeli Participants may be offered an opportunity to purchase Shares that qualify for favorable tax treatment under Section 102 of the ITO, as defined in Section 2. Except as otherwise provided by this Subplan, all grants made pursuant to this Subplan shall be governed by the terms of the Plan. This Subplan complies with and is subject to the ITO  and Section 102, as defined below in Section 2.
	
 

	
1.4
	
This Subplan is to be read as a continuation of the Plan and applies to Shares purchased by Israeli Participants under the Plan only to the extent necessary to comply with the requirements set by Israeli tax law in general, and in particular, with the provisions of the ITO. This Subplan does not add to or modify the Plan in respect of any other category of Participants.
	
 

	
2.
	
Definitions

	
2.1
	
Except as otherwise provided herein, capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Plan.
	
 

	
2.2
	
The following additional definitions will apply to grants made pursuant to this Subplan: 
	
 

	
a.
	
“3(i) Shares” means a Share that is subject to taxation pursuant to Section 3(i) of the ITO which has been granted to any person who is not an Eligible 102 Participant.

	
b.
	
“102 Capital Gains Track” means the tax alternative set forth in Section 102(b)(2) and 102(b)(3) of the ITO. 

	
c.
	
“102 Capital Gains Track Grant” means a 102 Trustee Grant qualifying for the special tax treatment under the 102 Capital Gains Track.

	
d.
	
“102 Ordinary Income Track” means the tax alternative set forth in Section 102(b)(1) of the ITO. 

	
e.
	
“102 Ordinary Income Track Grant” means a 102 Trustee Grant qualifying for the ordinary income tax treatment under the 102 Ordinary Income Track.

 

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f.
	
“102 Trustee Grant” means Shares elected and designated by the Company as an Award granted pursuant to Section 102(b) of the ITO (includes both 102 Capital Gains Track Grants and 102 Ordinary Income Track Grants) and held in trust by a Trustee for the benefit of an Eligible 102 Participant. 

	
g.
	
“Employer” means any “Employer” within the meaning of article (1) of “Employing Company” (as defined under Section 102(a) of the ITO) that also meets the definition of “Designated Subsidiary” under the Plan.

	
h.
	
“Controlling Shareholder” means a “controlling shareholder” within the meaning of Section 32(9) of the ITO, currently defined as an individual who, prior to the grant or as a result of the grant or exercise of any Award, holds or would hold, directly or indirectly, in his name or with a “relative” (as defined in the ITO) (i) 10% of the outstanding Shares of the Company; (ii) 10% of the voting power of the Company; (iii) the right to hold or purchase 10% of the outstanding equity or voting power; (iv) the right to obtain 10% of the profits of the Company; or (v) the right to appoint a director of the Company.

	
i.
	
“Election” means the Company’s choice of the type (as between the 102 Capital Gains Track or 102 Ordinary Income Track) of 102 Trustee Grants it will make under the Plan, as filed with the ITA.

	
j.
	
“Eligible 102 Participant” means an Israeli Participant who is employed by an Israeli resident Employer and who is subject to the provisions of Section 102, including an individual who is serving as a director or an office holder but excluding any Controlling Shareholder or non-employee service provider, unless otherwise approved in writing by the ITA.

	
k.
	
“ITA” means the Israeli Tax Authority.

	
l.
	
“ITO” means the Israeli Income Tax Ordinance [New Version], 1961 and the rules, regulations, orders or procedures promulgated thereunder and any amendments thereto, including specifically the Rules, all as may be amended from time to time. 

	
m.
	
“Non-Trustee Grant” means an Award granted to an Eligible 102 Participant pursuant to Section 102(c) of the ITO and not held in trust by a Trustee.

	
n.
	
“Required Holding Period” means the requisite holding period prescribed by the ITO and the Rules, or such other period as may be required by the ITA, with respect to 102 Trustee Grants, during which 102 Trustee Grants granted, or any rights or Shares issued pursuant to the 102 Trustee Grant by the Company, must be held by the Trustee for the benefit of the person to whom they were granted in order for such grant to enjoy the tax benefits afforded to a 102 Trustee Grant. Currently, the Required Holding Period is 24 months from the Purchase Date for 102 Capital Gains Track Grants and 12 months from the Purchase Date for 102 Ordinary Income Track Grants.

	
o.
	
“Rules” means the Income Tax Rules (Tax Benefits in Shares Issuance to Employees), 5763-2003.

	
p.
	
“Shares” means a share of Common Stock as defined in the Plan. 

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q.
	
“Section 102” means Section 102 of the ITO, as amended from time to time, including by the Law Amending the Income Tax Ordinance (Number 132), 2002, effective as of January 1, 2003 and by the Law Amending the Income Tax Ordinance (Number 147), 2005, and any written rulings provided to the Company or any Designated Subsidiary by the ITA applying to the grant of Shares under this Subplan. 

	
r.
	
“Trustee” means a person or entity designated by the Administrator to serve as a trustee of the 102 Trustee Grants and approved by the ITA in accordance with the provisions of Section 102(a) of the ITO and the Rules.

	
3.
	
Types of Grants and Section 102 Election

	
3.1
	
102 Trustee Grants shall be made pursuant to either (a) Sections 102(b)(2) and 102(b)(3) of the ITO as 102 Capital Gains Track Grants or (b) Section 102(b)(1) of the ITO as 102 Ordinary Income Track Grants. The Company shall choose only one tax route for the Plan. The Company’s Election regarding the type of 102 Trustee Grant it chooses to make shall be filed with the ITA. Once the Company has filed such Election, it may change the type of 102 Trustee Grant that it chooses to make only after the lapse of at least 12 months from the end of the calendar year in which the first grant was made in accordance with the previous Election, unless provided otherwise under Section 102 or by the ITA. For the avoidance of doubt, such Election shall not prevent the Company from granting Non-Trustee Grants to Eligible 102 Participants at any time.
	
 

	
3.2
	
Eligible 102 Participants may receive only 102 Trustee Grants or Non-Trustee Grants under this Subplan. Individuals or entities that are not Eligible 102 Participants may be granted only 3(i) Shares under this Subplan.
	
 

	
3.3
	
Unless otherwise approved by the ITA, no 102 Trustee Grants may be made pursuant to this Subplan until 30 days after the requisite filings required by Section 102 and the Rules have been made with the ITA.
	
 

	
3.4
	
The subscription agreement or other enrollment documents evidencing the Shares issued pursuant to the Plan and this Subplan shall indicate whether the grant is a 102 Trustee Grant, a Non-Trustee Grant or a 3(i) Share, and if the grant is a 102 Trustee Grant, whether it is a 102 Capital Gains Track Grant or a 102 Ordinary Income Track Grant.
	
 

	
3.5
	
The designation of Non-Trustee Grants and 102 Trustee Grants shall be subject to the terms and conditions set forth in Section 102.
	
 

	
3.6
	
Shares purchased by individuals or entities that are not Eligible 102 Participants shall be designated as 3(i) Shares and shall be subject to tax according to the applicable provisions of the ITO. 
	
 

	
4.
	
Terms and Conditions of 102 Trustee Grants 

	
4.1
	
Each 102 Trustee Grant will be deemed granted on the Purchase Date, provided that (i) the Company will provide notice to the Trustee of the grant in such form or period of time as may be required under Section 102. 
	
 

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4.2
	
Each 102 Trustee Grant granted to an Eligible 102 Participant shall be issued to and registered in the name of a Trustee or controlled by the Trustee for the benefit of the Eligible 102 Participant in accordance with the provisions of Section 102. In the event that the requirements for 102 Trustee Grants are not met, the 102 Trustee Grants may be regarded as Non-Trustee Grants or as Shares which are not subject to Section 102, all in accordance with the provisions of Section 102. 
	
 

	
4.3
	
With respect to any 102 Trustee Grant, and subject to the provisions of Section 102, an Eligible 102 Participant shall not sell or release from trust any Share purchased under the Plan as a 102 Trustee Grant, including, without limitation, stock dividends, at least until the lapse of the Required Holding Period. Notwithstanding the above, if any such sale or release occurs during the Required Holding Period, the sanctions under Section 102 shall apply to and shall be borne by such Eligible 102 Participant.
	
 

	
4.4
	
In the event a stock dividend is declared and/or other rights are granted with respect to Shares granted as 102 Trustee Grants, such stock dividend and/or other rights shall also be deposited with the Trustee and will be subject to the provisions of this Section 4. The Required Holding Period for Shares and/or rights shall be measured from the commencement of the Required Holding Period for the Share with respect to which the stock dividend was declared and/or other rights were granted.
	
 

	
4.5
	
Each 102 Trustee Grant (whether a 102 Capital Gains Track Grant or a 102 Ordinary lncome Track Grant, as applicable) shall be subject to the relevant terms of Section 102 and the ITO and the agreement between the Trustee and the Company or any Israeli resident Employer (“Trust Agreement”), which shall be deemed an integral part of the 102 Trustee Grant and the terms of Section 102 and the ITO shall prevail over any term contained in the Plan, this Subplan, or any subscription agreement that is not consistent therewith.  Any provision of the ITO and any additional terms required by the ITA not expressly specified in this Subplan or in the subscription agreement, as applicable, which are necessary to receive or maintain any tax benefit pursuant the Section 102, shall be binding on the Eligible 102 Participant.  The Trustee and the Eligible 102 Participant granted a 102 Trustee Grant shall comply with the ITO and the terms and conditions of the Trust Agreement.  For avoidance of doubt, it is reiterated that compliance with the ITO and Section 102 specifically includes compliance with the Rules.  Further, the Eligible 102 Participant agrees to execute or otherwise accept any and all documents that the Company, the Designated Subsidiary employing the Israeli Participant or the Trustee may reasonably determine to be necessary in order to comply with the ITO and the Rules.
	
 

	
4.6
	
During the Required Holding Period, the Eligible 102 Participant will not be allowed to direct the Trustee to release or sell Shares purchased under the Plan or any rights derived from the Shares (including stock dividends) to the Eligible 102 Participant or to a third party, unless permitted to do so under the ITO or the Rules.  Notwithstanding the foregoing, the Trustee may, pursuant to a written request and subject to the ITO and the Rules, release and transfer the Shares to a designated third party, provided that both of the following conditions have been fulfilled prior to such transfer: (i) all taxes required to be paid upon the release and transfer of the Shares have been withheld for transfer to the tax authorities and (ii) the Trustee has received written confirmation from the Company that all requirements for such release and transfer have been fulfilled according to the terms of the Plan, Subplan, any applicable 
	
 

4

 

		
subscription agreement and any Applicable Laws related to the issuance of Shares. Such sale or release during the Required Holding Period will result in different tax ramifications to the Eligible 102 Participant under Section 102 of the ITO and the Rules, which shall apply to and shall be borne solely by such Eligible 102 Participant. 
	
 

	
4.7
	
In the event a cash dividend is paid on the Shares, the Trustee shall transfer the dividend proceeds to the Eligible 102 Participant after deduction of taxes and mandatory payments in compliance with applicable withholding requirements, and subject to any other requirements imposed by the ITA.
	
 

	
4.8
	
After the Required Holding Period ends, the Eligible 102 Participant may elect that the Shares be transferred to the Eligible 102 Participant directly, provided that the Participant first complies with all applicable provisions of the Plan, Subplan, and the Company and/or its Designated Subsidiary confirms that all of the taxes and mandatory payments in compliance with applicable withholding requirements have been paid by the Eligible 102 Participant.
	
 

	
5.
	
Assignability

	
5.1
	
The Trustee will not perform any transaction or act regarding the Shares granted as 102 Trustee Grants, including transferring, selling, seizing, assigning, hypothecating or pledging (willingly or unwillingly), disposing or assigning the Shares, and will not give any power of attorney regarding the Shares, in any manner other than by will or by the laws of descent and distribution and as permitted by the Plan, unless all the taxes are paid to the ITA, or the Trustee ensures that taxes will be paid. If the Shares are transferred by will or by the laws of descent and distribution, Section 102 and its regulations, including the Rules, will apply to the heirs or the transferees of the Eligible 102 Participant. 
	
 

	
6.
	
Tax Consequences

	
6.1
	
Any tax consequences arising from the issuance, sale or transfer of Shares, or from any other event or act (of the Company and/or an Employer in Israel and/or the Trustee and/or the Eligible 102 Participant) shall be borne solely by the Eligible 102 Participant. The Company, the applicable Employer in Israel and/or the Trustee shall withhold taxes according to the requirements under Applicable Laws related to tax withholding, including withholding taxes at source.  Furthermore, the Eligible 102 Participant shall agree to indemnify the Company, the applicable Employer in Israel, and/or the Trustee and hold them harmless against and from any and all liability for any such tax, interest, linkage differences or penalty thereon, including, without any limitation, liabilities relating to the necessity to withhold or to have withheld any such tax from any payment made to the Eligible 102 Participant. 
	
 

	
6.2
	
The Company, the applicable Employer, and/or the Trustee may make such provisions and take such steps as they may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Shares granted under the Plan and the sale, transfer or other disposition thereof, including (but not limited to) (i) withholding from the Eligible 102 Participant’s wages or other cash compensation paid to the Eligible 102 Participant by the Company or an Employer in Israel; or (ii) withholding otherwise deliverable Shares; or (iii) selling a sufficient number of such Shares otherwise deliverable to the Eligible 102 Participant through such means as the Trustee may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld either through a voluntary 
	
 

5

 

		
sale or through a mandatory sale arranged by the Company (on the Eligible 102 Participant’s behalf pursuant to the Eligible 102 Participant’s authorization), to the extent permitted by Section 102 of the ITO or pursuant to the approval of the ITA; or (iv) requiring an Eligible 102 Participant to pay to the Company or an Employer in Israel the amount so required to be withheld as a condition of the issuance, delivery, distribution or release of any Shares.  In addition, the Eligible 102 Participant will be required to pay any amount, including penalties, interest and linkage differences, that exceeds the tax to be withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations and rules. 
	
 

	
6.3
	
The Company, the applicable Employer in Israel and/or the Trustee shall not be required to release any Shares to the Eligible 102 Participant until all required tax withholding has been performed. 
	
 

	
6.4
	
For the avoidance of doubt, there is no assurance that all of the Shares granted pursuant to Section 102 of the ITO shall be eligible for the tax benefits pursuant to Section 102 of the ITO. Therefore, any tax consequences arising from the issuance of Shares covered thereby, from the subsequent sale of Shares or from any other event or act (of the Company, an Employer in Israel, the Trustee, and/or the Eligible 102 Participant) shall be borne solely by the Eligible 102 Participant.
	
 

	
6.5
	
Following the purchase of Shares under this Subplan and in any case in which the Eligible 102 Participant may cease to be considered an “Israeli Resident” as this term is defined in the ITO, the Company, an Employer in Israel, and/or the Trustee may, if and to the extent the ITO and/or the rules promulgated thereunder shall impose such obligation on them, withhold all applicable taxes from the Eligible 102 Participant, remit the amount withheld to the ITA and report to such Eligible 102 Participant the amount so withheld and paid to the ITA. 
	
 

	
6.6
	
With respect to Non-Trustee Grants, if the Eligible 102 Participant ceases to be employed by the Company or an Employer in Israel, or otherwise if so requested by the Company or the Employer, the Eligible 102 Participant shall extend to the Company or to the employing Company a security or guarantee for the payment of tax due at the time of sale of Shares to the satisfaction of the Company or the employing Company, all in accordance with the provisions of Section 102 of the ITO and the Rules.

	
7.
	
Governing Law and Jurisdiction

	
7.1
	
Notwithstanding the governing law provisions of the Plan and the subscription agreement, this Subplan shall be governed by, and interpreted in accordance with, the laws of the State of Israel applicable to contracts made and to be performed therein. 
	
 

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