Document:

zayo-ex1025_768.htm

Exhibit 10.25

ZAYO GROUP HOLDINGS, INC. 

GRANT NOTICE FOR 2014 STOCK INCENTIVE PLAN 

RESTRICTED STOCK UNIT AWARD 
Non-Employee Director Awards

FOR GOOD AND VALUABLE CONSIDERATION, Zayo Group Holdings, Inc. (the 

“Company”), hereby grants to Participant named below the number of restricted stock units specified below (the “Award”).  Each restricted stock unit represents the right to receive one share of the Company’s common stock, par value $0.001 (the “Common Stock”), upon the terms and subject to the conditions set forth in this Grant Notice, the Zayo Group Holdings, Inc. 2014 Stock Incentive Plan (the “Plan”) and the Standard Terms and Conditions (the “Standard Terms and Conditions”) promulgated under such Plan, each as amended from time to time. This Award is granted pursuant to the Plan and is subject to and qualified in its entirety by the Standard Terms and Conditions.   

 

		
	
Name of Participant: 
	
     

	
Grant Date: 
	
     

	
Number of restricted stock units: 
	
     

	
Vesting Schedule: 
	
The Award vests with respect to 100% of the restricted stock units on        (the “Vesting Date”), provided that the Participant is serving as a non-employee director of the Company on the Vesting Date.

 

By accepting this Grant Notice, Participant acknowledges that he or she has received and read, and agrees that this Award shall be subject to, the terms of this Grant Notice, the Plan and the Standard Terms and Conditions. 

 

			
	
ZAYO GROUP HOLDINGS, INC.
	
 
	
PARTICIPANT

	
By

 

 

Title:

 

 

 
	
By
	
 
	
 
	
Title:
	
 
	
 
	
 
	
_______________________________
         Participant Signature

	
By
	
 
	
 

	
Title:
	
 

	
 

 

 

 

 

 

ZAYO GROUP HOLDINGS, INC. 

STANDARD TERMS AND CONDITIONS FOR 

RESTRICTED STOCK UNITS  

Non-Employee Director Awards

These Standard Terms and Conditions apply to the Award of restricted stock units granted pursuant to the Zayo Group Holdings, Inc. 2014 Stock Incentive Plan (the “Plan”), which are evidenced by a Grant Notice or an action of the Committee that specifically refers to these Standard Terms and Conditions.  In addition to these Standard Terms and Conditions, the restricted stock units shall be subject to the terms of the Plan, which are incorporated into these Standard Terms and Conditions by this reference.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan. 

1. TERMS OF RESTRICTED STOCK UNITS 

Zayo Group Holdings, Inc. (the “Company”), has granted to the Participant named in the Grant 

Notice provided to said Participant herewith (the “Grant Notice”) an award of a number of restricted stock units (the “Award” or the “Restricted Stock Units”) with each Restricted Stock 

Unit representing the right to receive one share of the Company’s common stock, par value $0.001 (the “Common Stock”) specified in the Grant Notice.  The Award is subject to the conditions set forth in the Grant Notice, these Standard Terms and Conditions, and the Plan, each as amended from time to time.  For purposes of these Standard Terms and Conditions and the Grant Notice, any reference to the Company shall include a reference to any Subsidiary. 

2. VESTING AND FORFEITURE OF RESTRICTED STOCK UNITS 

The Award shall not be vested as of the Grant Date set forth in the Grant Notice and shall be forfeitable unless and until otherwise vested pursuant to the terms of the Grant Notice and these Standard Terms and Conditions.  After the Grant Date, subject to termination or acceleration as provided in these Standard Terms and Conditions and the Plan, the Award shall become vested as described in the Grant Notice with respect to that number of Restricted Stock Units as set forth in the Grant Notice.  Restricted Stock Units that have vested and are no longer subject to forfeiture are referred to herein as “Vested RSUs.”   

3. SETTLEMENT OF RESTRICTED STOCK UNITS 

Each Vested RSU will be settled by the delivery of one share of Common Stock (subject to adjustment under Section 14 of the Plan) to the Participant or, in the event of the Participant’s death, to the Participant’s estate, heir or beneficiary, promptly following the Vesting Date (but in no event later than 30 days following the Vesting Date); provided that the Participant has satisfied all of the tax withholding obligations described in Section 6 below, and that the Participant has completed, signed and returned any documents and taken any additional action that the Company deems appropriate to enable it to accomplish the delivery of the shares of Common Stock.  The date upon which shares of Common Stock are to be issued under this Section 3 is referred to as the “Settlement Date.”  The issuance of the shares of Common Stock hereunder may be effected by the issuance of a stock certificate, recording shares on the stock records of the Company or by crediting shares in an account established on the Participant’s behalf with a brokerage firm or other custodian, in each case as determined by the Company.  Fractional shares will not be issued pursuant to the Award.   

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Notwithstanding the above, (i) the Company shall not be obligated to deliver any shares of the Common Stock during any period when the Company determines that the delivery of shares hereunder would violate any federal, state or other applicable laws, (ii) the Company may issue shares of Common Stock hereunder subject to any restrictive legends that, as determined by the Company’s counsel, are necessary to comply with securities or other regulatory requirements, and (iii) the date on which shares are issued hereunder may include a delay (which delay shall in no event extend beyond 30 days following the Vesting Date) in order to provide the Company such time as it determines appropriate to address tax withholding and other administrative matters.   

4. RIGHTS AS STOCKHOLDER 

Participant shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any RSUs unless and until shares of Common Stock settled for such RSUs shall have been issued by the Company to Participant (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).   

Notwithstanding the foregoing, from and after the Grant Date and until the earlier of (a) the time when the Restricted Stock Units become vested and payable in accordance with the terms hereof or (b) the time when the Participant’s right to receive Common Stock upon payment of Restricted Stock Units is forfeited, on the date that the Company pays a cash dividend (if any) to holders of Common Stock generally, the Participant shall be entitled to a number of additional whole Restricted Stock Units determined by dividing (i) the product of (A) the dollar amount of the cash dividend paid per share of Common Stock on such date and (B) the total number of Restricted Stock Units (including Dividend Equivalents paid thereon) previously credited to the Participant as of such date, by (ii) the Fair Market Value per share of Common Stock on such date.  Such Dividend Equivalents (if any) shall be subject to the same terms and conditions and shall be settled or forfeited in the same manner and at the same time as the Restricted Stock Units to which the Dividend Equivalents were credited. 

5. RESTRICTIONS ON RESALES OF SHARES 

The Company may impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by the Participant or other subsequent transfers by the Participant of any shares of Common Stock issued pursuant to Vested RSUs, including without limitation (a) restrictions under an insider trading policy, (b) restrictions designed to delay and/or coordinate the timing and manner of sales by Participant and other holders and (c) restrictions as to the use of a specified brokerage firm for such resales or other transfers.  

6. TAXES 

The Participant is ultimately liable and responsible for all taxes owed in connection with the Award.  The Company makes no representation or undertaking regarding the tax treatment of the grant, vesting, or settlement of the Award or the subsequent sale of any of the underlying shares of Common Stock.  The Company does not commit and is under no obligation to structure this Award to reduce or eliminate the Participant’s tax liability. 

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7. NON-TRANSFERABILITY OF AWARD 

The Participant understands, acknowledges and agrees that, except as otherwise provided in the Plan or as permitted by the Committee, the Award may not be sold, assigned, transferred, pledged or otherwise directly or indirectly encumbered or disposed of other than by will or the laws of descent and distribution.   

	
8.
	
Intentionally Left Blank  

  

	
9.
	
Intentionally Left Blank 

 

10. OTHER AGREEMENTS SUPERSEDED 

The Grant Notice, these Standard Terms and Conditions and the Plan constitute the entire understanding between the Participant and the Company regarding the Award.  Any prior agreements, commitments or negotiations concerning the Award are superseded. 

	
11. 
	
LIMITATION OF INTEREST IN SHARES SUBJECT TO RESTRICTED STOCK UNITS 

Neither the Participant (individually or as a member of a group) nor any beneficiary or other person claiming under or through the Participant shall have any right, title, interest, or privilege in or to any shares of Common Stock allocated or reserved for the purpose of the Plan or subject to the Grant Notice or these Standard Terms and Conditions except as to such shares of Common Stock, if any, as shall have been issued to such person in connection with the Award.  Nothing in the Plan, in the Grant Notice, these Standard Terms and Conditions or any other instrument executed pursuant to the Plan shall confer upon the Participant any right to continue in the Company’s employ or service nor limit in any way the Company’s right to terminate the Participant’s employment or service at any time for any reason. 

12. SECTION 409A 

Notwithstanding any other provision of the Plan or these Standard Terms and Conditions, this Award is not intended to provide for a deferral of compensation within the meaning of Section 409A of the Code and is intended to qualify for as a “short-term deferral” under Section 409A of the Code, and these Standard Terms and Conditions shall be construed or deemed to be amended as necessary to effect such intent.  Under no circumstances, however, shall the Company have any liability under the Plan or these Standard Terms and Conditions for any taxes, penalties or interest due on amounts paid or payable pursuant to the Plan or these Standard Terms and Conditions, including any taxes, penalties or interest imposed under Section 409A of the Code.   

13. GENERAL 

	
(a)
	
In the event that any provision of these Standard Terms and Conditions is declared to be illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, such provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of these Standard Terms and Conditions shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision. 
	
 

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(b)
	
The headings preceding the text of the sections hereof are inserted solely for convenience of reference, and shall not constitute a part of these Standard Terms and Conditions, nor shall they affect its meaning, construction or effect. 
	
 

	
(c)
	
These Standard Terms and Conditions shall inure to the benefit of and be binding upon the parties hereto and their respective permitted heirs, beneficiaries, successors and assigns. 
	
 

	
(d)
	
These Standard Terms and Conditions shall be construed in accordance with and governed by the laws of the State of Delaware, without regard to principles of conflicts of law. 
	
 

	
(e)
	
In the event of any conflict between the Grant Notice, these Standard Terms and Conditions and the Plan, the Grant Notice and these Standard Terms and Conditions shall control.  In the event of any conflict between the Grant Notice and these Standard Terms and Conditions, the Grant Notice shall control. 
	
 

	
(f)
	
All questions arising under the Plan or under these Standard Terms and Conditions shall be decided by the Committee in its total and absolute discretion.   
	
 

14. ELECTRONIC DELIVERY 

By executing the Grant Notice, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, and the Restricted Stock Units via Company web site or other electronic delivery. 

1Exhibit

CONSULTING SERVICES AGREEMENT

This Consulting Services Agreement is effective as of the 15 day of September, 2015 (the “Effective Date”), by and between Verint Systems Ltd. (“Verint”), a company organized under the laws of the State of Israel from 33 Maskit Street, Herzliya Israel 46733 and Meir Sperling, 5 Hadafna St., Tel Mond, 4060859, Israel (the “Consultant”). 

W I T N E S S E T H

WHEREAS Verint is in the business of development, manufacture and marketing of Security Intelligence Solutions (the “Business”); and

WHEREAS the Consultant has been an employee of Verint, and as of September 15, 2015 Consultant’s employment has been terminated pursuant to his Employment Agreement dated as of [DATE] (the “Employment Agreement”); and

WHEREAS the Consultant has the skills, experience and the ability to provide Verint with consulting services pursuant to this Agreement; and

WHEREAS, Verint desires to engage the Consultant, subsequent to the termination of the Employment Agreement, to provide it with certain consulting services related to the Business, as shall be instructed by Verint under the terms and conditions specified in this Agreement and set forth in Appendix A (the “Services”).

NOW THEREFORE, in consideration of the mutual promises and undertakings of the parties, it is hereby agreed as follows:

		
	1.
	Engagement of the Consultant

Verint hereby engages Consultant, and Consultant agrees to provide the Services and serve as a consultant of Verint in connection with the Services, starting on September 15, 2015.  

 
		
	2.
	Consultant Responsibilities

		
	2.1
	The Consultant agrees that in connection with the performance of the Services, it shall, inter alia, have the following responsibilities:

		
	(a)
	Keep Verint fully informed of all activities and plans in connection with the Services, and provide reports to Verint on a regular basis concerning the provision of the Services hereunder.

		
	(b) 
	Perform such additional services as Verint may from time to time reasonably request and as will be mutually agreed to between the Parties.

		
	(c)
	Comply with all applicable laws, rules and regulations of the territories in which Consultant’s Services are to be performed, including, but not limited to the provisions of any applicable trade compliance laws, and the provisions of the US Foreign Corrupt Practices Act or any similar anti-corruption law, as those are set forth in Appendix C hereto which forms an integral part of this Agreement. 

		
	2.2
	Consultant shall coordinate its activities with and report regularly to Peter Fante, CLO & CCO, or such other senior management personnel as Verint may designate from time to time.

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	3.
	Compensation

		
	3.1
	As compensation for performing the Services for one day per week, Verint shall pay the Consultant, a monthly fixed gross fee in the amount of 25,000 NIS (twenty five thousand NIS) plus VAT as set forth hereinbelow during the Term (the “Retainer Fee”).

In addition to the Retainer Fee, Verint shall pay the Consultant a daily fixed gross fee in the amount of 6,000 NIS (six thousand NIS) plus VAT per each additional day that Consultant performs the Services, or a pro rated portion thereof.

		
	3.2
	In addition to the Compensation, Consultant shall be entitled to reimbursement for expenses under this Agreement only to the extent such expenses have been approved by Verint in writing in advance and are in accordance with Verint’s expense policies. Any item purchased by Consultant pursuant to an approval in writing by Verint shall be and remain in Verint’s sole ownership and shall be delivered to Verint upon request.

		
	3.3
	All invoices issued under this Agreement shall be paid by Verint within forty five (45) days after the date on which a valid and correct tax invoice in proper form is received by Verint. Payments shall be made in New Israeli Shekels. 

		
	3.4
	Consultant shall be solely responsible for and shall pay any insurance contributions, income tax and other such assessments made or imposed by any governmental authority upon the Consultant with regard to the provision of the Services, the payment of the Compensation pursuant to this Agreement, and such amounts shall be deemed to have been included in the Compensation. No additional payment shall be made by the Verint in respect of the above, and if Verint is required to withhold payment for taxes, such deductions shall be made from the Compensation due.

		
	3.5
	Without derogating from any other term of the equity grants that Consultant was awarded by Verint Systems Inc. during his employment with the Verint (the “Equity Grants”), it is hereby clarified that during the Term of this Agreement, Consultant shall be deemed to be under “Continous Service” as this term is used in the Equity Grants. For avoidance of doubt, nothing in this Agreement shall be interpreted as giving right or entitlement to Consultant to be granted with future equity grants of any kind, and such decision is and shall remain at all times, at the Verint’s sole discretion.

		
	3.6
	Other than the Compensation set forth in this Section 3, the Consultant shall not be entitled to any other indemnification, compensation, remuneration or other payment whatsoever from Verint in connection with the provision of Services pursuant to this Agreement; provided, however, that in connection with Consultant's service as a member of the board of directors of Verint Systems Inc. or any of its subsidiaries, Verint shall (or shall cause its applicable affiliate to) indemnify Consultant, and to procure coverage for Consultant under a policy of directors' and officers' insurance, in each case on a basis similar to the other members of the applicable board of directors in general, solely in their respective capacities as members of such applicable board of directors (the "Indemnification Obligations").

  
		
	3.7
	It is further agreed that without derogating from the provision of section 5.2 below, the flights of the Consultant that are required by Verint for the sole purpose of the Services, will be booked and paid by Verint, in accordance with Verint’s travel policy at that time. In addition, Consultant will be entitled to reimbursement of actual out of pocket expenses directly related to the Services, including lodging and meals (capped at the per-diem amount for the relevant country), all in accordance with Verint’s travel policy at that time. For the avoidance of doubt it is clarified that the 

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Consultant will not be entitled for additional payment for working days during his travels, and such compensation is included in the fixed fee set forth in section 3.1 above.

		
	3.8
	In addition, the Consultant will be entitled to keep the Verint’s laptop that he used during his employment, which will be returned to Verint upon termination of this Agreement.  

		
	4.
	Term of Agreement and its Termination

		
	4.1
	This Agreement shall be in force and effect as of the Effective Date for a twelve (12) months period (the “Term”), unless extended through mutual written agreement between the Parties. 

		
	4.2
	Notwithstanding the aforesaid, during the Term this Agreement may be terminated by Mr. Sperling subject to sixty (60) days prior written notice.  After the Term, if the Parties extend the term of this Agreement beyond the initial Term (of 12 months) as set forth in section 4.1 above, either party will be entitled to terminate the Agreement subject to sixty (60) days prior written notice. 

		
	4.3
	Notwithstanding the foregoing, Verint may terminate this Agreement at any time for Cause upon the provision of written notice to the Consultant, effective immediately. The term “Cause” shall mean:

		
	(a) 
	A material breach of this Agreement by Consultant which is not remedied within seven (7) days of Consultant receiving written notification of the same; 

		
	(b)
	The commission by the Consultant of any act involving dishonesty, theft, embezzlement, self-dealing, breach of trust or misconduct with respect to the affairs of Verint;

		
	(c)
	The engagement by Consultant in any business competitive to the Business of Verint; or

		
	(d)
	The commencement of voluntary or involuntary bankruptcy (liquidation or reorganization), or receivership or commencement of a similar insolvency proceeding against the Consultant or the cessation of its business operation.

		
	4.4
	Upon the expiration or termination of this Agreement for any reason, Verint shall be required to pay the Consultant only such Compensation and reimbursement as are accrued and unpaid through the date of such termination.  Verint shall not be liable to Consultant for any other indemnification, compensation, remuneration or other payment whatsoever; provided, however, that any ongoing Indemnification Obligations shall continue with respect to Consultant's service on the applicable board(s) of directors during the Term. 

5.    Status of Parties.  

		
	5.1
	This Agreement is not intended by the parties to constitute or create a joint venture, partnership, agency or formal business organization of any kind. Consultant shall not act as, or hold itself out as, agent for Verint, nor shall Consultant create or attempt to create liabilities for the Company. Consultant shall have no authority to bind the Company to any agreement or to the performance of any obligation, nor shall Consultant represent that he has the right to enter into any undertaking on behalf of Verint, without Verint’s prior written approval, and for specific customer or potential 

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customers for which Verint will provide to Consultant a general authorization to represent himself as a Verint representative.

		
	5.2
	Consultant will at all times act as an independent contractor and not as an employee of Verint. The parties hereby agree that in the event a court or tribunal having jurisdiction over the matter holds that Consultant’s status is that of an employee rather than an independent contractor, Consultant shall bear any and all additional payments in connection with such declaration of status, including but not limited to, all applicable taxes or other fees or deductions to any governmental authority that Verint may be required to pay. 

6.        Non-Disclosure, Non-Solicitation and Intellectual Property Rights

Consultant shall execute the Non-Disclosure and Non-Solicitation Agreement attached hereto as Appendix B, the provisions of which shall be deemed an integral part of this Agreement. 

7.    Reserved 

8.    Representations and Warranties of the Consultant

The Consultant represents and warrants to Verint that: (i) the execution and delivery of this Agreement and the fulfillment of the terms hereof will not constitute a default under any applicable law or breach of any agreement or other instrument to which it is a party or by which it is bound, including without limitation, any confidentiality or non-competition agreement with any third party, nor will it require the consent of any person or entity, and (ii) the Consultant shall not utilize during the provision of the Services any proprietary information of any third party, including prior employers of the Consultant unless expressly permitted by such former employer.

		
	9.
	General Provisions

		
	9.1
	This Agreement constitutes the full and entire understandings and agreements between the parties hereto and replaces any previous agreement and/or communications between the parties hereto; provided, however, that any terms of the Employment Agreement that were expressly intended to survive the termination thereof shall remain in full force and effect. This Agreement may only be amended, modified or varied in a written instrument executed by both parties hereto.

		
	9.2
	No failure, delay or forbearance of either party in exercising any power or right hereunder shall in any way restrict or diminish such party’s right’s and power’s under this Agreement or operate as a waiver of any breach or non-performance by either party of any of the terms or conditions hereof.

		
	9.3
	Consultant may not assign or delegate its rights or duties to a third party without the prior written consent of Verint, which may be denied for any reason.

		
	9.4
	All notices and requests required or authorized hereunder shall be given in writing either by personal delivery, by registered mail, addressed to the party intended at its address set forth above, or by facsimile, and shall be deemed received as follows: notices served by hand upon delivery, notice served by facsimile the next business day following the delivery, provided however that such notice shall be followed by 

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a telephone confirmation, and notice served by registered mail within seven (7) business days following delivery by registered mail, postage prepaid. 

		
	9.5
	This Agreement, its performance and interpretation shall be governed by the substantive law of the State of Israel, exclusive of its choice of law rules.  The competent courts and tribunals situated in Tel Aviv, Israel shall have sole and exclusive jurisdiction in any dispute or controversy arising out of or relating to this Agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

Verint Systems Ltd.                Meir Sperling (Consultant)

     /s/ Ziv Levi                                       /s/ Meir Sperling                            
    
by:  Ziv Levi                    by:  Meir Sperling

title:  GC                        

     /s/ David Abadi                        

by:  David Abadi                                            

title:  CFO CIS                     

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APPENDIX A

SERVICES

The following services are included:

		
	1.
	Preparation of policies and procedures for Verint, including implementation thereof, including meetings and interviews with Verint employees and consultants related thereto.

		
	2.
	Conducting risk assessment activities.

		
	3.
	Continuing to service as a director of Verint and/or certain subsidiaries or affiliates of Verint.

		
	4.
	General business advice.

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APPENDIX B

NON-DISCLOSURE AND NON-SOLICITATION AGREEMENT

This Non-disclosure and Non-Solicitation Agreement (this "Agreement") is entered into this 1 day of September, 2015, by and between Verint Systems Ltd. (“Verint”, or the "Company"), a company organized under the laws of the State of Israel from33 Maskit Street, Herzliya 46733 Israel, and Meir Sperling ID 004187050, residing at 5 Hadafna St., Tel Mond, 4060859, Israel (the “Consultant” or “Recipient”). 

WITNESSETH

WHEREAS, the Consultant has entered into a Consulting Agreement with the Company, to which this Agreement constitutes an Appendix;

WHEREAS, while performing the services described in the Consulting Agreement Recipients shall be exposed and have access to confidential and/or proprietary information of the Company (the “Purpose”); and 

WHEREAS in order to restrict such exposure and access, the parties hereto desire to undertake certain obligations of confidentiality, non-disclosure and non solicitation as set forth herein;

NOW THEREFORE, in consideration of the mutual undertakings and promises herein, the parties hereto hereby agree as follows:

		
	1.
	Definitions.

 
For purposes of this Agreement, the following definitions shall apply:

“Affiliate” shall mean an entity controlled by, controlling or under common control with the Recipient, as used in this definition, the term “control” means the possession, directly or indirectly, of more than 50% of the voting stock of the controlled entity, or the power to direct, or cause the direction of the management and policy of the controlled entity.

“Company” shall include Verint and any of its Affiliates. 

“Development” shall mean any invention, modification, discovery, design, development, improvement, process, software program, work of authorship, documentation, formula, data, technique, know-how, trade secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under copyright, trademark or similar statutes or subject to analogous protection), conceived by Recipient as a result of or in connection with performing the Services.

"Confidential Information" means any and all information and know-how of a private, secret or confidential nature, in whatever form, that relates to the business, financial condition, technology and/or products of Verint, its Affiliates, customers, potential customers, suppliers or potential suppliers, provided or disclosed to the Recipient or which becomes known to the Recipient as a result of the Consulting Agreement, whether or not marked or otherwise designated as “confidential”, “proprietary” or with any other legend indicating its proprietary nature. By way of illustration and not limitation, Confidential Information includes all forms and types of financial, business, technical, or engineering information and know-how, including but not limited to specifications, designs, techniques, methods, compilations, inventions and developments, products, equipment, algorithms, computer programs (whether as source code or object code), marketing and customer, vendor and personal information, projections, plans and reports, and any other data, 

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documentation, or information related thereto, as well as improvements thereof, whether in tangible or intangible form, and whether or not stored, compiled or memorialized in any media or in writing, including information disclosed as a result of any visitation, consultation or information disclosed by Verint or others on its behalf such as consultants, clients, suppliers and customers.  

     "Confidential Information" shall not include information or matter that the Recipient can demonstrate by reasonable and tangible evidence that: (a) was already known to it prior to its disclosure pursuant to this Agreement, or was independently developed by it thereafter without reference to or use of the Confidential Information; (b) have become a part of the public knowledge, without a breach of this Agreement by itself; (c) have been received by it from another person or entity having no confidentiality obligation to Verint or its Affiliates; or (d) is explicitly approved in writing by Verint for release by the recipient.  The above Exceptions shall not permit the Recipient to disregard the obligations of confidentiality stated herein merely because individual portion(s) of the Confidential Information may be found within such exceptions, or because the Confidential Information is implicitly but not explicitly disclosed in information falling within such exceptions.

2.       Obligations of Confidentiality. 

		
	2.1
	Recipient shall treat all Confidential Information disclosed to it as strictly confidential and not to exploit or make use, directly or indirectly, of such Confidential Information without the express written consent of the Company, except for the purpose of performing the Services pursuant to the Consulting Agreement. Consultant shall assume full responsibility for enforcing this obligation and shall take appropriate measures with its employees to ensure that such persons are bound by a like covenant of secrecy, including but not limited to informing any of its employees receiving such Confidential Information that such Confidential Information shall not be disclosed except as provided herein.

		
	2.2
	Recipient shall not copy or reproduce in any way (including without limitation, store in any computer or electronic system) any Confidential Information for purposes other than the performance of the Services, without the Company’s prior written consent.

		
	2.3
	Recipient shall refrain from analyzing, reverse-engineering, decompiling, or disassembly or attempting to analyze Confidential Information in order to determine the construction, code, algorithm or topology (composition, formula or specifications) thereof, either by itself or through any third party.

		
	2.4
	The disclosure of the Confidential Information by the Company shall not grant Recipient any express, implied or other license or rights to patents or trade secrets of the Company or their suppliers, whether or not patentable, nor shall it constitute or be deemed to create a partnership, joint venture or other undertaking.

		
	2.5
	Recipient shall not remove or otherwise alter any of trademarks or service marks, serial numbers, logos, copyrights, notices or other proprietary notices or indicia, if any, fixed or attached to the Confidential Information or any part thereof. 

		
	2.6
	If Recipient or anyone to whom Recipient has disclosed the Confidential Information with the consent of the Company is required to disclose any Confidential Information pursuant to the provisions of any applicable law - Recipient shall first notify the Company of such requirement and shall cooperate with the Company so that the Company may seek a protective order or prevent or minimize such disclosure. 

		
	2.7
	Recipient is aware that parent companies of the Company are publicly traded in the NASDAQ stock exchange, and that all or part of the Confidential Information may be regarded by applicable law as “Inside Information”, as this term is defined in the Israeli Securities Law, 1968 or the US Securities Laws; Recipient is aware that legal restrictions are imposed by Israeli and US Securities Laws concerning the use of such information by the holder thereof in connection with any transaction in the Company’s parent companies securities.

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	2.8
	Recipient hereby assumes full responsibility for any damage caused to the Company as a result of the breach of this Agreement by it or by any of its employees and consultants, and shall take all appropriate measures to insure the non-disclosure of the Confidential Information to any third party. 

		
	3.
	Return of Proprietary Information.  

Unless otherwise required by statute or government rule or regulation, upon demand by the Company, Recipient shall: (i) cease using the Confidential Information; (ii) immediately return to the Company all notes, copies and extracts thereof of the Confidential Information, in any form or media whatsoever without retaining copies thereof; and (iii) upon request of the Company, certify in writing that the Recipients have complied with the obligations set forth in this paragraph.  

		
	4.
	Intellectual Property Rights.

The Recipient hereby acknowledges and agrees that: 

		
	4.1
	The Confidential Information furnished hereunder is and shall remain proprietary to the Company.

		
	4.2
	It shall promptly disclose to the Company, without further compensation or consideration, all Development, and keep accurate records relating to the conception and reduction to practice of all such Development. Such records shall be the sole and exclusive property of the Company, and Recipient shall surrender possession of such records to the Company upon the request of the Company or upon the termination of the Services at the latest.

		
	4.3
	It hereby assigns to the Company, without further compensation and consideration, the entire right, title and interest in and to the Development and in and to all proprietary and any and all intellectual property rights therein or based thereon. Recipient shall execute all such assignments, oaths, declarations and other documents as may be prepared by the Company to effect the foregoing.

5.    Non Compete; Non-Solicitation.

In addition to any other obligation Recipient may have towards the Company, Recipient agrees that for a period of one (1) year after the termination of the Consulting Agreement for any reason whatsoever, it will not, directly or indirectly: 

		
	5.1
	Engage whether as an employee, partner, joint venturer, investor, director, consultant or otherwise, in any business activity which is directly or indirectly in competition any where in the world with any of the products or services being developed, marketed, distributed, planned, sold or otherwise provided by the Company during the time of performing the Services.

		
	5.2
	(i) solicit, induce, recruit, hire or encourage any employee or consultant of the Company to leave such position, or attempt to do any of the foregoing, either for themselves or for any other person or entity, (ii) contact any customers of the Company for the purpose of selling or marketing to those customers any products or services which are the same as or substantially similar to, or competitive with, the products or services sold and/or provided by the Company in relation to its business at such date, or (iii) otherwise interfere in any manner with the contractual or employment relationship between the Company and any of its employees, consultants, suppliers or customers.

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6.    Miscellaneous.  

		
	6.1
	The undertakings herein shall be binding upon Recipients and their respective affiliates, subsidiaries or successors and shall continue until such time as the substance of the disclosure has entered the public domain through no fault or negligence on the part of the Recipients, or until the Company specifically permits in writing to the Recipients to release or make use of the Confidential Information otherwise than as stated herein.

		
	6.2
	No failure or delay on the part of the parties to exercise any right, power or remedy under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise by either of the parties of any rights, powers or remedies. The rights, powers and remedies provided herein are cumulative and are not exclusive of any rights, powers or remedies by law.

		
	6.3
	All notices and requests required or authorized hereunder shall be given in writing either by personal delivery, by registered mail, addressed to the party intended at its address set forth above, or by facsimile, and shall be deemed received as follows: notices served by hand upon delivery, notice served by facsimile the next business day following the delivery, provided however that such notice shall be followed by a telephone confirmation, and notice served by registered mail within seven (7) business days following delivery by registered mail, postage prepaid.

		
	6.4
	This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

		
	6.5
	This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without regard to the principles of the conflict of laws. The competent courts within the city of Tel-Aviv, Israel, shall have exclusive jurisdiction to adjudicate any dispute arising out of this Agreement. Notwithstanding the foregoing, the Company may resort to any court of competent jurisdiction to obtain injunctive relief to prevent the disclosure of its information.

		
	6.6
	This Agreement shall constitute the entire Agreement between the parties with respect to the confidentiality, non-disclosure, proprietary nature of the Confidential Information and non-competition and shall supersede any and all prior agreements and understandings relating thereto. No change, modification, alteration or addition of or to any provision of this Agreement shall be binding unless in writing and executed by or on behalf of all parties by a duly authorized representative.

		
	6.7
	Recipient may not assign this Agreement without the prior written consent of the Company. The Company may assign this Agreement to any of its Affiliates and/or any entity which is the successor to any part of its business related to this Agreement by way of merger or acquirer of all or substantially all of its assets related to this Agreement and which agrees to assume all obligations of the assigning party under this Agreement from and after the date of such assignment.

		
	6.8
	If any one or more of the terms contained in this Agreement shall for any reason be held to be excessively broad with regard to time, geographic scope or activity, that term shall be construed in a manner to enable it to be enforced to the extent compatible with applicable law. A determination that any term is void or unenforceable shall not affect the validity or enforceability of any other term or condition and any such invalid provision shall be construed and enforced (to the extent possible) in accordance with the original intent of the parties as herein expressed.

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	6.9
	The parties agree that an impending or existing violation of any provision of this Agreement may cause the Company irreparable injury for which it would have no adequate remedy at law, and agree that the Company shall be entitled to seek immediate injunctive relief prohibiting such violation, in addition to any other rights and remedies available to it. 

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

		
	Verint Systems Ltd.
	Meir Sperling (Consultant)                                         

By:     /s/ David Abadi                                      By:          /s/ Meir Sperling          

Title:     SVP, CFO                                            

By:     /s/ Ziv Levi                                         
    
Title:     General Counsel                                   

            

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APPENDIX C

1.    U.S. Foreign Corrupt Practices Act. The U.S. Foreign Corrupt Practices Act (the “FCPA”) makes it unlawful to offer, pay, promise or authorize to pay any money, gift or anything of value, directly or indirectly: (i) to any Government Official (as defined below) or any foreign (non-U.S.) political party or (ii) to any person while knowing or suspecting that the payment or gift will be passed on to a Government Official, in connection with any business activity of Verint Systems Inc. or its wholly or partially owned affiliates (collectively “Verint”) in order to obtain or retain business or to secure any improper advantage. For the purpose of this Agreement, the term “Government Official” means any employee or officer of a government including any national, regional or local department, agency, or enterprise owned or controlled by a government, any official of a political party, any official or employee of a public international organization, any person acting in an official capacity for, or on behalf of, such entities, and any candidate for foreign political office.

2.    Representations, Warranties and Covenants of Consultant (in this Appendix C, defined as “Representative”. The Representative makes the following representations and warranties to the Company, and covenants and agrees as follows:

2.1    Public and Commercial Bribery Representations, Warranties and Covenants of Representative. The Representative hereby represents, warrants and covenants that it has not, and covenants and agrees that it will not, in connection with this Agreement and any services performed by the Representative in connection herewith, make or promise or offer to make any payment or transfer of anything of value, directly or indirectly: (i) to any Government Official or government employee (including employees of government-owned entities or corporations); or (ii) to any political party, official of a political party or candidate (or to an intermediary for payment to any of the foregoing) in order to obtain or retain business or to secure any improper advantage. It is the intent of the parties that no payments or transfers of value shall be made that have the purpose or effect of public or commercial bribery, acceptance of or acquiescence in extortion, kickbacks or other unlawful or improper means of obtaining business.

2.2    Policy Certifications. The Representative will, for itself and for each of its directors, officers, employees, agents or other representatives who have any direct involvement with the performance of this Agreement, certify that the Representative (or any of such persons) has not, and to its knowledge no other person, including but not limited to every director, officer, employee, representative, and agent of the Representative, has made, offered to make or agreed to make any loan, gift, donation or other payment, directly or indirectly, whether in cash or in kind to any Government Official or political party, in order to secure or to retain business or for any improper purpose.  

2.3.    Continuing Obligation to Advise. The Representative agrees that should it learn of or have reason to suspect or know of:  (i) any such payment, offer, or agreement to make a payment to a Government Official, political party, or political party official or candidate for the purpose of obtaining or retaining business or securing any improper advantage; or (ii) any other development that in any way makes inaccurate or incomplete the representations, warranties and certifications of the Representative hereunder given or made as of the date hereof or at any time during the term of this Agreement, the Representative will immediately advise company representative of such knowledge or suspicion and the entire basis known to the Representative therefor.

2.4    No Governmental Ownership of Representative. The Representative hereby represents and warrants to the Company that no Government Official has any ownership interest, direct or indirect, in the Representative or in the contractual relationship established by this 

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Agreement. In the event that during the term of this Agreement there is acquisition of an interest of any sort or nature, direct or indirect, in the Representative or in this Agreement by a Government Official, the Representative covenants and agrees to make immediate, complete and accurate written disclosure of such acquisition to the Company.

2.5    Company Audit Right. In order to verify compliance with the provisions of this Agreement, the Representative agrees that the Company shall have the right, upon reasonable written notice, to audit the books and records of the Representative to the extent such books and records relate to the performance of this Agreement and any payments made under this Agreement. The Representative agrees to furnish promptly to the Company any additional information the Company may reasonably request to verify the Representative’s compliance with the provisions of Section 2.1.

2.6    Disclosure of Agreement. The Representative agrees that full disclosure of this Agreement may be made at any time and for any reason to the United States government and its agencies, and to any other person the Company’s General Counsel determines has a legitimate need to know.

2.7    Rights Upon Default. In the event that the Company should believe, in good faith, that the Representative has acted or failed to act in any way that may subject the Company to liability under the FCPA (which action or failure to act is, hereinafter, an “FCPA Default”), the Company shall have the unilateral right, exercisable immediately upon written notice to the Representative:

		
	A.
	To refuse to consummate any transaction contemplated by this Agreement; and/or

		
	B.
	To terminate this Agreement immediately in accordance with Section 4.3 of this Agreement.

            

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