Document:

exhibit_10-3.htm

Exhibit 10.3

 

BLUE SPHERE CORP.

 

GLOBAL SHARE INCENTIVE PLAN (2010)

 

I.          NAME AND PURPOSE.

 

1.1         This plan, which has been adopted by the Board of Directors of the Company, Blue Sphere Corp., as amended from time to time, shall be known as the Blue Sphere Corp. Global Share Incentive Plan (2010) (the "Plan").

 

1.2         The purposes of the Plan are to attract and retain the best available personnel for positions of

substantial responsibility, to provide additional incentive to Service Providers of the Company and its affiliates and subsidiaries, if any, and to promote the Company's business by providing such individuals with opportunities to receive Awards pursuant to the Plan and to strengthen the sense of common interest between such individuals and the Company's Stockholders.

 

1.3                Awards granted under the Plan to Service Providers in various jurisdictions may be subject to specific terms and conditions for such grants may be set forth in one or more separate appendix to the Plan, as may be approved by the Board of Directors of the Company from time to time.

 

2.         DEFINITIONS

 

"Administrator" shall mean the Board of Directors or a Committee.

 

"Appendix" shall mean any appendix to the Plan adopted by the Board of Directors containing country-specific or other special terms relating to Awards including additional terms with respect to grants of restricted stock and other equity-based Awards.

 

"Award" shall mean a grant of Options or allotment of Shares or other equity-based award hereunder. All Awards shall be confirmed by an Award Agreement, and subject to the terms and conditions of such Award Agreement.

 

"Award Agreement" shall mean a written instrument setting forth the terms applicable to a particular Award.

 

"Board of Directors" shall mean the board of directors of the Company.

 

"Cause" shall have the meaning ascribed to such term or a similar term as set forth in the Participant's employment agreement or the agreement governing the provision of services by a non-employee Service Provider, or, in the absence of such a definition: (i) conviction (or plea of nolo contendere) of any felony or crime involving moral turpitude or affecting the Company; (ii) repeated and unreasonable refusal to carry out a reasonable and lawful directive of the Company or of Participant's supervisor which involves the business of the Company or its affiliates and was capable of being lawfully performed; (iii) fraud or embezzlement of funds of the Company or its affiliates; (iv) any breach by a director of his / her fiduciary duties or duties of care towards the Company; and (v) any disclosure of confidential information of the Company or breach of any obligation not to compete with the Company or not to violate a restrictive covenant.

 

"Committee" shall mean a compensation committee or other committee as may be appointed and maintained by the Board of Directors, in its discretion, to administer the Plan, to the extent permissible under applicable law, as amended from time to time.

 

  

  

  

 

"Company" shall mean Blue Sphere Corp., a Nevada Corporation, and its successors and assigns.

 

"Consultant" means any entity or individual who (either directly or, in the case of an individual, through his or her employer) is an advisor or consultant to the Company or its subsidiary or affiliate.

 

"Corporate Charter" shall mean the Certificate of Incorporation and By-laws of the Company, and any subsequent amendments or replacements thereto.

 

"Disability" shall have the meaning ascribed to such term or a similar term in the Participant's employment agreement (where applicable), or in the absence of such a definition, the inability of the Participant, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of the Participant's position with the Company because of the sickness or injury of the Participant for a consecutive period of 90 days.

 

"Fair Market Value" shall mean, as of any date, the value of Shares, determined as follows:

 

(i)         If the Shares are listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq Small Cap Market, the Fair Market Value of a Share of common stock of the Company shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest volume of trading in the common stock) on the last market trading day prior to the day of determination, as reported in the Wall Street Journal or such other source as the Board deems reliable.

 

(ii)         In the absence of such markets for the Shares, the Fair Market Value shall be determined in good faith by the Board.

 

"IPO" shall mean an initial offering of the Company's Shares to the public in an underwritten offering under an applicable registration statement.

 

"Options" shall mean options to purchase Shares awarded under the Plan.

 

"Participant" shall mean a recipient of an Award hereunder who executes an Award Agreement.

 

"Restricted Stock" means an Award of Shares under this Plan that is subject to the terms and conditions of Section 7.

 

"Service Provider" shall mean an employee, director, office holder or Consultant of the Company or its subsidiary or affiliate.

 

"Shares" shall mean shares of common stock, par value US$ 0.001 per share, of the Company, "Transaction" shall have the meaning set forth in Section 10.2.

 

3.         ADMINISTRATION OF THE PLAN.

 

3.1         The Plan will be administered by the Administrator. If the Administrator is a Committee, such Committee will consist of such number of members of the board of directors of the Company (not less than two in number), as may be determined from time to time by the Board of Directors. The Board of Directors shall appoint such members of the Committee, may from time to time remove members from, or add members to, the Committee, and shall fill vacancies in the Committee however caused.

 

3.2         The Committee, if appointed, shall select one of its members as its Chairman and shall hold its meetings at such times and places as it shall determine. Actions at a meeting of the Committee at which a majority of its members are present or acts approved in writing by all members of the Committee shall be the valid acts of the Committee. The Committee shall appoint a secretary, who shall keep records of its meetings and shall make such rules and regulations for the conduct of its business and the implementation of the Plan, as it shall deem advisable, subject to the directives of the Board of Directors and in accordance with applicable law.

 

  

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3.3         Subject to the general terms and conditions of the Plan, and in particular Section 3.4 below, the Administrator shall have full authority in its discretion, from time to time and at any time, to determine (i) eligible Participants, (ii) the number of Options or Shares to be covered by each Award, (iii) the time or times at which the Award shall be granted, (iv) the vesting schedule and other terms and conditions applying to Awards, (v) the form(s) of written agreements applying to Awards, and (vi) any other matter which is necessary or desirable for, or incidental to, the administration of the Plan and the granting of Awards. The Board of Directors may, in its sole discretion, delegate some or all of the powers listed above to the Committee, to the extent permitted by applicable law, its Corporate Charter or other applicable law, rules and regulations.

 

3.4         No member of the Board of Directors or of the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted hereunder. Subject to the Company's decision and to all approvals legally required, each member of the Board or the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him or her, 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 Plan unless arising out of such member's own willful misconduct or bad faith, to the fullest extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the member may have as a director or otherwise under the Company's Corporate Charter, any agreement, any vote of stockholders or disinterested directors, insurance policy or otherwise.

 

3.5         The interpretation and construction by the Administrator of any provision of the Plan or of any Option hereunder shall be final and conclusive. In the event that the Board appoints a Committee, the interpretation and construction by the Committee of any provision of the Plan or of any Option hereunder shall be conclusive unless otherwise determined by the Board of Directors. To avoid doubt, the Board of Directors may at any time exercise any powers of the Administrator, notwithstanding the fact that a Committee has been appointed.

 

3.6         The Administrator shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities (to the extent permitted by applicable law and applicable stock exchange rules), as it shall, from time to time, deem advisable; to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. The Administrator may correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent it shall deem necessary to effectuate the purpose and intent of the Plan. Notwithstanding the foregoing, no action of the Administrator under this Section 0 not otherwise provided for herein or in an Award Agreement shall reduce the vested rights of any Participant without the Participant's consent.

 

3.7         Without limiting the generality of the foregoing, the Administrator may adopt special appendices and/or guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign jurisdictions, to comply with applicable laws, regulations, or accounting, listing or other rules with respect to such domestic or foreign jurisdictions.

 

  

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4.         ELIGIBLEPARTICIPANTS.

 

4.1         No Award may be granted pursuant to the Plan to any person serving as a member of the Committee or to any other Director of the Company at the time of the grant, unless such grant is approved in the manner prescribed for the approval of compensation of directors under applicable law.

 

4.2         Subject to the limitation set forth in Section 4.1 above and any restriction imposed by applicable law, Awards may be granted to any Service Provider of the Company, whether or not a director of the Company or its affiliates. The grant of an Award to a Participant hereunder shall neither entitle such Participant to receive an additional Award or participate in other incentive plans of the Company, nor disqualify such Participant from receiving any additional Award or participating in other incentive plans of the Company.

 

5.         RESERVED SHARES.

 

The Company shall determine the number of Shares reserved hereunder from time to time, and such number may be increased or decreased by the Company from time to time. Any Shares under the Plan, in respect of which the right hereunder' of a Participant to purchase the same shall for any reason terminate, expire or otherwise cease to exist, shall again be available for grant as Awards under the Plan. Any Shares that remain unissued and are not subject to Awards at the termination of the Plan shall cease to be reserved for purposes of the Plan. Until termination of the Plan the Company shall at all times reserve a sufficient number of Shares to meet the requirements of the Plan.

 

6.         AWARD AGREEMENT.

 

6.1         The Board of Directors in its discretion may award to Participants Awards available under the Plan. The terms of the Award will be set forth in the Award Agreement. The date of grant of each Award shall be the date specified by the Board of Directors at the time such award is made, or in the absence of such specification, the date of approval of the award by the Board of Directors.

 

6.2         The Award Agreement shall state, inter alia, the number of Options or Shares or equity-based units covered thereby, the type of Option or Share-based or other grant awarded, any special terms applying to such Award (if any), including the terms of any country-specific or other applicable Appendix, as determined by the Board of Directors.

 

7,         RESTRICTED STOCK AND OTHER EQUITY-BASED AWARDS.

 

7.1         Eligibility. Restricted Stock may be issued to all Participants either alone or in addition to other Awards granted under the Plan. The Administrator shall determine the eligible Participants to whom, and the time or times at which, grants of Restricted Stock will be made, the number of shares to be awarded, the purchase price (if any) to be paid by the Participant (subject to Section 7.2), the time or times at which such Awards may be subject to forfeiture (if any), the vesting schedule (if any) and rights to acceleration thereof, and all other terms and conditions of the Awards. The Administrator may condition the grant or vesting of Restricted Stock upon the attainment of specified performance targets or such other factors as the Administrator may determine, in its sole discretion. Unless otherwise determined by the Administrator , the Participant shall not be permitted to sell or transfer shares of Restricted Stock awarded under this Plan during a period set by the Administrator (if any) (the "Restriction Period") commencing with the date of such Award, as set forth in the applicable Award agreement.

 

7.2         Terms. A Participant selected to receive Restricted Stock shall not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the Award Agreement evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. The purchase price of Restricted Stock shall be determined by the Administrator, but shall not be less than as permitted under applicable law. Awards of Restricted Stock must be accepted within a period of 60 days (or such shorter period as the Administrator may specify at grant) after the grant date, by executing an Award Agreement and by paying whatever price (if any) the Administrator has designated thereunder.

 

  

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7.3         Legend. Each Participant receiving Restricted Stock shall be issued a share certificate in respect of such shares of Restricted Stock, unless the Administrator elects to use another system, such as book entries by the transfer agent, as evidencing ownership of Restricted Stock. Such certificate shall be registered in the name of such Participant, and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Award, substantially in the following form (as well as other legend required by the Administrator pursuant to Section 19.3 below):

 

"The anticipation, alienation, attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares represented hereby are subject to the terms and conditions (including forfeiture) of the Blue Sphere Corp. Global Incentive Plan (2010), and an Award Agreement entered into between the registered owner and the Company dated  Copies of such Plan and Award agreement are on file at Blue Sphere Corp."

 

7.4         Custody. The Administrator may require that any share certificates evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Stock Award, the Participant shall have delivered a duly signed share transfer deed, endorsed in blank, relating to the Shares covered by such Award.

 

7.5         Rights as Stockholder. Except as provided in this Section and Section 7.4 above and as otherwise determined by the Administrator and set forth in the Award Agreement, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder of Shares including, without limitation, the right to receive any dividends, the right to vote such shares and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares. Notwithstanding the foregoing, the payment of dividends shall be deferred until, and conditioned upon, the expiration of the applicable Restriction Period, unless the Administrator, in its sole discretion, specifies otherwise at the time of the Award.

 

7.6         Lapse of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock subject to such Restriction Period, the certificates for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery to the Participant except as otherwise required by applicable law. Notwithstanding the foregoing, actual certificates shall not be issued to the extent that book entry recordkeeping is used.

 

7.7         Other Equity-Based Awards. Other equity-based awards (including, without limitation, restricted stock units and performance share awards) may be granted either alone or in addition to or other Awards granted under the Plan to all eligible Participants pursuant to such terms and conditions as the Administrator may determine, including without limitation, in one or more appendix adopted by the administrator and appended to this Plan.

 

8.         EXERCISE OF OPTIONS,

 

8.1         Options shall be exercisable pursuant to the terms under which they were awarded and subject to the terms and conditions of the Plan and any applicable Appendix, as specified in the Award Agreement.

 

8.2         The exercise price for each share to be issued upon exercise of an Option shall be such price as is determined by the Board in its discretion, provided that the price per Share is not less than the par value of each Share.

 

  

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8.3         An Option, or any part thereof, shall be exercisable by the Participant's signing and returning to the Company at its principal office {and to the Trustee, where applicable), a "Notice of Exercise" in such form and substance as may be prescribed by the Board of Directors from time to time, together with full payment for the Shares underlying such Option.

 

8.4         Each payment for Shares under an Option shall be in respect of a whole number of Shares, shall be effected in cash or by check payable to the order of the Company, or such other method of payment acceptable to the Company as determined by the Administrator, and shall be accompanied by a notice stating the number of Shares being paid for thereby.

 

8.5         Until the Shares are issued (as evidenced by the appropriate entry in the share register of the Company or of a duly authorized transfer agent of the Company) a Participant shall have no right to vote or right to receive dividends or any other rights as a shareholder shall exist with respect to such Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right the record date for which is prior to the date the Shares are issued, except as provided in Section 9 of the Plan.

 

8.6         To the extent permitted by law, if the Share is traded on a national securities exchange, The Nasdaq Share Market or quoted on a national quotation system sponsored by the National Association of Securities Dealers or otherwise publicly traded or quoted, payment for the Shares underlying an Option may be made all or in part by the delivery (on a form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of the exercise price (or the relevant portion thereof, as applicable) and any withholding taxes, or on such other terms and conditions as may be acceptable to the Administrator. No Shares shall be issued until payment has been made or provided for, as provided herein.

 

9.         TERMINATION OF RELATIONSHIP AS SERVICE PROVIDER.

 

9.1         Effect of Termination; Exercise after Termination. Unless otherwise determined by the Administrator, if a Participant ceases to be a Service Provider, such Participant may exercise any outstanding Options within such period of time as is specified in the Award Agreement or the Plan to the extent that the Options are vested on the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). If, on the date of termination, any Options are unvested, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Participant does not exercise the vested Options within the time specified in the Award Agreement or the Plan, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

 

In the absence of a provision specifying otherwise in the relevant Award Agreement, then:

 

(a)         in the event that the Participant ceases to be a Service Provider for any reason other than termination for Cause, or as a result of the Participant's death or Disability: (i) the vested Options shall remain exercisable until the earlier of: (i) a period of three (3) months from the Date of Termination; or (ii) expiration of the term of the Option as set forth in Section 13; and (ii) all Restricted Stock still subject to restriction under the applicable Restriction Period, as set forth in the Award Agreement, shall be forfeited;

 

{b)         in the event that the Participant ceases to be a Service Provider as a result of the. Participant's death or Disability: (i) the vested Options shall remain exercisable until the earlier of: (i) a period of one (1) year from the Date of Termination; or (ii) expiration of the term of the Option as set forth in Section 13; and (ii) all Restricted Stock still subject to restriction under the applicable Restriction Period, as set forth in the Award Agreement, shall be forfeited;

 

(c)         in the event that the Participant ceases to be a Service Provider for Cause, (i) all Options will terminate immediately upon the date of such termination for Cause, such that the unvested portion of the Options will not vest, and the vested portion of the Options will no longer be exercisable; and (ii) all Restricted Stock still subject to restriction under the applicable Restriction Period as of the Date of Termination, as set forth in the Award Agreement, shall be forfeited.

 

  

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9.2         Date of Termination. For purposes of the Plan and any Option or Option Agreement, and unless otherwise set forth in the relevant Award Agreement, the "Date of Termination" (whether for Cause or otherwise) shall be the effective date of termination of the Participant's employment or engagement as a Service Provider.

 

9.3         Leave of Absence. Unless the Administrator provides otherwise, vesting of Awards granted hereunder shall be suspended during any unpaid leave of absence.

 

9.4         Change of Status. A Service Provider shall not cease to be considered as such in the case of any (a) leave of absence approved by the Company, or (b) transfers between locations of the Company or between the Company, and its parent, subsidiary, affiliate, or any successor thereof; or (c) changes in status (employee to director, employee to consultant, etc.) provided that such change does not affect the specific terms applying to the Service Provider's Award.

 

10.         ADJUSTMENTS.

 

Upon the occurrence of any of the following described events, a Participant's rights to purchase Shares under the Plan shall be adjusted as hereinafter provided:

 

10.1         Changes in Capitalization. Subject to any required action by the stockholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan but as to which no Options or other Award have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or other Award, as well as the price per Share covered by each such outstanding Option, shall be proportionately adjusted for any increase or decrease in the number of issued Shares resulting from a share split, reverse share split, share dividend, combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without receipt of consideration by the Company. The conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of any class, or securities convertible into shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares subject to an Option or other Award.

 

10.2         Merger, Acquisition, or Asset Sale.

 

(a) In the event of (i) a merger or consolidation of the Company with or into another corporation resulting in such other corporation being the surviving entity or the direct or indirect parent of the Company or resulting in the Company being the surviving entity and any other person or entity owning fifty percent (50%) or more of the outstanding voting power of the Company's securities by virtue of the transaction, (ii) an acquisition of all or substantially all of the shares of the Company, or (iii) the sale of all or substantially all of the assets of the Company (each such event, a "Transaction"), the unexercised or restricted portion of each outstanding Award shall be assumed or an equivalent Award or right substituted, by the successor corporation or an affiliate of the successor corporation, as shall be determined by such entity, subject to the subsequent sentence in this Section 0(a) and the remaining terms of the Plan. In the event that the successor corporation or a parent or subsidiary of the successor corporation does not provide for such an assumption or substitution of Options, the Administrator may determine, at its sole discretion, that all or a portion of the outstanding and unvested Options shall become exercisable in full on a date no later than ten (10) days prior to the date of consummation of the Transaction, provided that unless otherwise determined by the Administrator, the exercise of all Options that

otherwise would not have been exercisable in the absence of a Transaction, shall be contingent upon the actual consummation of the Transaction.

 

  

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(b) other securities or property) received in the merger or sale of assets by holders of Shares of the Company for each Share held on the effective date of the Transaction (and if holders were offered a choice of consideration, the type of consideration determined by the Administrator, at For the purposes of this Section 010.2, an Option shall be considered assumed or substituted if, following a Transaction, the option confers the right to purchase or receive, for each Share subject to the Option immediately prior to the Transaction, the consideration (whether stock, cash, or its sole discretion); provided, however, that if the consideration received in the Transaction is not solely common stock or ordinary shares (or the equivalent) of the successor corporation or its direct or indirect parent, the Administrator may, with the consent of the successor corporation, provide for the per share consideration to be received upon the exercise of the Option to be solely common stock or ordinary shares (or the equivalent) of the successor corporation or its direct or indirect parent equal in fair market value to the per share consideration received by holders of Shares in the Transaction, as determined by the Administrator.

 

(c) In the event that the Board of Directors determines in good faith that, in the context of a Transaction, certain Options have no monetary value and thus do not entitle the holders of such Options to any consideration under the terms of the Transaction, the Board of Directors may determine that such Options shall terminate effective as of the effective date of the Transaction.

 

(d) It is the intention that the Administrator's authority to make determinations, adjustments and clarifications in connection with the treatment of Awards shall be interpreted as widely as possible, to allow the Administrator maximal power and flexibility to interpret and implement the provisions of the Plan in the event of Transaction, provided that the Administrator shall determine in good faith that a Participant's rights are not thereby adversely affected without the Participant's express written consent. Without derogating from the generality of the foregoing, the Administrator shall have the authority, at its sole discretion, to determine that the treatment of Options, whether vested or unvested, in a Transaction may differ among individual Participants or groups of Participants, provided that the overall economic impact of the different approaches determined by the Administrator shall be substantively equivalent as of the date of the closing of the Transaction.

 

11.         NON-TRANSFERABILITY OF OPTIONS AND SHARES.

 

11.1       No Option may be transferred other than by will or by the laws of descent and distribution, and during the Participant's lifetime an Option may be exercised only by such Participant.

 

11.2       Restricted Stock may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution, prior to the date on which the date on which any applicable restriction, performance or deferred period lapses. Shares for which full payment has not been made, may not be assigned, transferred, pledged or mortgaged, other than by will or laws of descent and distribution. For avoidance of doubt, the foregoing shall not be deemed to restrict the transfer of an Participant's rights in respect of Options or Shares purchasable pursuant to the exercise thereof upon the death of such Participant to such Participant's estate or other successors by operation of law or will, whose rights therein shall be governed by Section 9.1(a) hereof, and as may otherwise be determined by the Administrator. Further restrictions on the transfer of Shares are set forth below in Section 21 below.

 

12.         TERM AND AMENDMENT OF THE PLAN.

 

12.1       The Plan shall expire on the date which is ten (10) years from the date of its adoption by the Board of Directors (except as to Options outstanding on that date).

 

  

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12.2       Notwithstanding any other provision of the Plan, the Board (or a duly authorized Committee thereof) may at any time, and from time to time, amend, in whole or in part, any or all of the provisions of the Plan (including any amendment deemed necessary to ensure that the Company may comply with any regulatory requirement), or suspend or terminate it entirely, retroactively or otherwise; provided, however, that, except (x) to correct obvious drafting errors or as otherwise required by law or (y) as specifically provided herein, the rights of a Participant with respect to Awards granted prior to such amendment, suspension or termination, may not be reduced without the consent of such Participant. The Administrator may amend the terms of any Award theretofore granted, prospectively or retroactively, but except (x) to correct obvious drafting errors or as otherwise required by law or applicable accounting rules, or (y) as specifically provided herein, no such amendment or other action by the Committee shall reduce the rights of any Participant with respect to Awards without the Participant's consent.

 

13.         TERM OF OPTION.

 

Unless otherwise explicitly provided in an Award Agreement, if any Option, or any part thereof, has not been exercised and the Shares covered thereby not paid for within ten (10) years after the date on which the Option was granted, as set forth in the Award Agreement (or any other period set forth in the instrument granting such Option pursuant to Section 6), such Option, or such part thereof, and the right to acquire such Shares shall terminate, all interests and rights of the Participant in and to the same shall expire, and, in the event that in connection therewith any Shares are held in trust as aforesaid, such trust shall expire.

 

14.         CONTINUANCE OF ENGAGEMENT.

 

Neither the Plan nor any offer of Shares or Options to a Participant shall impose any obligation on the Company or a related company thereof, to continue the employment or engagement of any Participant as a Service Provider, and nothing in the Plan or in any Option granted pursuant thereto shall confer upon any Participant any right to continue to serve as a Service Provider of the Company or a related company thereof or restrict the right of the Company or a related company thereof to terminate such employment or engagement at any time.

 

15.         GOVERNING LAW.

 

The Plan and all instruments issued thereunder or in connection therewith, shall be governed by, and interpreted in accordance with, the laws of the State of Nevada.

 

16.         APPLICATION OF FUNDS.

 

The proceeds received by the Company from the sale of Shares pursuant to Options granted under the Plan will be used for general corporate purposes of the Company or any related company thereof.

 

17.         TAXES.

 

17.1  Any tax consequences arising from the grant, or vesting or exercise of any Award, from the payment for Shares covered thereby, or from any other event or act (of the Company, and/or its affiliates, or the Participant), hereunder, shall be borne solely by the Participant. The Company and/or its affiliates shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Participant shall agree to indemnify the Company and/or its affiliates and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Participant. The Company or any of its affiliates may make such provisions and take such steps as it may deem necessary or appropriate for the withholding of all taxes required by law to be withheld with respect to Awards granted under the Plan and the exercise thereof, including, but not limited, to (i) deducting the amount so required to be withheld from any other amount (or Shares issuable) then or thereafter to be provided to the Participant, including by deducting any such amount from a Participant's salary or other amounts payable to the Participant, to the maximum extent permitted under law and/or (ii) requiring the Participant to pay to the Company or any of its affiliates the amount so required to be withheld as a condition of the issuance, delivery, distribution or release of any Shares and/or (iii) by causing the exercise and sale of any Options or Shares held by on behalf of the Participant to cover such liability, up to the amount required to satisfy minimum statutory withholding requirements. In addition, the Participant will be required to pay any amount due in excess of the tax withheld and transferred to the tax authorities, pursuant to applicable tax laws, regulations and rules.

 

  

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17.2       The receipt of an Award and/or the acquisition of Shares issued upon the exercise of the Options may result in tax consequences. The description of tax consequences set forth in the Plan or any Appendix hereto does not purport to be complete, up to date or to take into account any special circumstances relating to a Participant.

 

17.3       THE PARTICIPANT IS ADVISED TO CONSULT WITH A TAX ADVISOR WITH RESPECT TO THE TAX CONSEQUENCES OF RECEIVING OR EXERCISING ANY AWARD IN LIGHT OF HIS OR HER PARTICULAR CIRCUMSTANCES.

 

18.         MARKET STAND-OFF

 

If so requested by the Company or any representative of the underwriters (the "Managing Underwriter") in connection with any registration of the offering of any securities of the Company under the securities laws of any jurisdiction, the Participant shall not sell or otherwise transfer any Shares or other securities of the Company during a 180-day period or such other period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company (the "Market Standoff Period") following the effective date of registration statement of the Company filed under such securities laws, The Company may require the Participant to execute a form of undertaking to this effect or impose stop transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period.

 

19.         CONDITIONS UPON ISSUANCE OF SHARES.

 

19.1       Legal Compliance. Shares shall not be issued pursuant to the exercise of an Option or with respect to any other Award unless the exercise of such Option or grant of such Award and the issuance and delivery of such Shares shall comply with applicable laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

 

19.2   investment Representations. As a condition to the exercise of an Option or receipt of an Award, the Board may require the person exercising such Option or receiving such Award to represent and warrant at the time of any such exercise or the time of receipt of the Award that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares, and make other representations as may be required under applicable securities laws if, in the opinion of counsel for the Company, such representations are required, all in form and content specified by the Board.

 

19.3       Legend. The Administrator may require each person receiving Shares pursuant to an Award granted under the Plan to represent to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and such other securities law related representations as the Administrator shall request. In addition to any legend required by the Plan, the certificates for such shares may include any legend which the Administrator deems appropriate to reflect any applicable restrictions on transfer. All certificates for Shares delivered under the Plan shall be subject to such stock transfer orders and other restrictions as the Administrator may deem advisable under the rules, regulations and other requirements of any relevant securities authority, any stock exchange upon which the Shares are then listed or any national securities association system upon whose system the Shares are then quoted, any applicable securities law, and any applicable corporate law, and the Administrator may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

  

10 of 11

  

 

20.         PROXY

 

The Company, at its sole discretion, may require that as a condition of grant of an Award or of exercise of an Option, the Participant be required to grant an irrevocable proxy to any appropriate person designated by the Company, to vote all Shares obtained by the Participant pursuant to an Award at all general meetings of Company, and to sign all written resolutions, waivers, consents etc. of the shareholders of the Company on behalf of the Participant, including the right to waive on behalf of the Participant all minimum notice requirements for meetings of shareholders of the Company. Such proxy shall remain in effect until the consummation of an IPO, and shall be irrevocable as the rights of third parties, including investors in the Company, depend upon such proxy. The proxy shall be personal to the Participant and shall not survive the transfer of the Participant's Shares to a third-party transferee; provided, however, that upon a transfer of the Participant's Shares to such a transferee (subject to the terms and conditions of the Plan concerning any such transfer), the transferee may be required to grant an irrevocable proxy to such appropriate person as the Company, in giving its approval to the transfer, so requires. The proxy may be contained in the Award Agreement of each Participant or otherwise as the Committee determines. If contained in the Award Agreement, no further document shall be required to implement such proxy, and the signature of the Participant on the Award Agreement shall indicate approval of the proxy thereby granted. The holder of the proxy shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably incurred by him/her, 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 proxy unless arising out of his/her own fraud, bad faith or gross negligence, to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the holder of the proxy may have as a director, officer or otherwise under the Company's Certificate of Incorporation, by laws or any agreement, any vote of shareholders or directors, insurance policy or otherwise.

 

21.         ADDITIONAL RESTRICTIONS ON TRANSFERS OF SHARES.

 

Until such time as the Shares are registered for trade to the public, a Participant shall not be permitted to transfer, sell, assign, pledge, hypothecate, or otherwise encumber or dispose of in any way (for the purposes of this Section 21, a "Transfer") to one or more third parties pursuant to an understanding with such third parties any Shares, except as otherwise provided in this Plan, the applicable Award Agreement or as required under applicable law.

 

22.         MISCELLANEOUS.

 

Whenever applicable in the Plan, the singular and the plural, and the masculine, feminine and neuter shall be freely interchangeable, as the context requires. The Section headings or titles shall not in any way control the construction of the language herein, such headings or titles having been inserted solely for the purpose of simplified reference. Words such as "herein", "hereof", "hereto", "hereinafter", "hereby", and "hereinabove" when used in the Plan refer to the Plan as a whole, including any applicable Appendices, unless otherwise required by context.

 

11 of 11exhibit_10-4.htm

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT made this 3rd day of March, 2010 (the "Effective Date"). 

 

BETWEEN:

 

Blue Sphere Corporation, a Nevada company with a business office in 

Hong Kong (formerly Jin Jie Corp.),

(the "Company")

 

AND:

 

Eli Weinberg, an individual currently residing in Haifa, Israel.

(the "Chairman")

 

WHEREAS:

 

A.     The Company has, subject to the completion of certain conditions by the Chairman, agreed to engage the Chairman to serve in the role of founder of the Israeli subsidiary of the Company (the "Israeli Subsidiary") and as an active director of the Israeli Subsidiary and upon his appointment as a director of the Company, as the Chairman of the Board of the Company; and

 

B.     The Chairman and the Company wish to formally record the terms and conditions upon which the Chairman will be employed by the Company and that each of the Company and the Chairman have agreed to the terms and conditions set forth in this Agreement, as evidenced by their execution hereof; and

 

C.     The Chairman has significant experience and has previously negotiated with several potential clients of the Company in the past and thus has established relationships with such potential clients and will consequently reinitiate such relationships with the goal of beginning negotiations in order to have the Company sign commercial agreements with such potential clients; and

 

D.    "PDD" means a document, prepared by an outsourced professional entity that presents information on the essential technical and organizational aspects of a project activity and is used for the registration of the project with the UNFCCC. The PDD contains information on the project activity, the approved baseline methodology applied to the project activity, and the approved monitoring methodology applied to the project. It discusses and justifies the choice of baseline methodology and the applied monitoring concept, including monitoring data and calculation methods.

 

NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of the premises and the mutual covenants and agreements herein contained, the parties premises and the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:

 

 

 

 

 

ARTICLE I

CONTRACT FOR SERVICES

 

	
1.1

	
Engagement of Chairman. The Company hereby agrees to employ the Chairman in accordance with the terms and provisions hereof.

 

	
  

	
(a)

	
Term. Unless terminated earlier in accordance with the provisions hereof, the term of employment under this Agreement will commence on the date of execution hereof (the "Commencement Date") and will continue for a period of two (2) years from the Commencement Date (the "Term"). The Term will terminate immediately unless the following conditions are satisfied on or before April 15, 2010 or on an extended date as per 1.1(b) below, and in such case, this Agreement will be null and void ab initio:

 

	
  

	
(i)

	
the Company, as a result of the Chairman's efforts, has entered into two (2) fully-executed agreements with two separate parties, each unrelated and arm's length to each other and to the Chairman, for carbon credit services; and

 

	
  

	
(ii)

	
the Company, as a result of the Chairman's efforts, has entered into two (2) signed memorandums of understanding with two separate parties, each unrelated and arm's length to each other and to the Chairman, for carbon credit services;

 

	
  

	
(b)

	
However, notwithstanding the above, if receipt of $500,000 less legal fees deducted (to a maximum of $50,000) necessary for the operation of the activities of the Israeli Subsidiary via a shareholders loan or capital injection by the Company (the "Funds") in the bank account of the Israeli subsidiary of the Company (the "Bank Account") is delayed beyond March 1, 2010, then the date of April 15TH 2010, shall be extended on a day for day basis, until the funds are received in the Bank Account.

 

	
1.2

	
Service. The Chairman agrees to faithfully, honestly and diligently serve the Company and to devote the Chairman's time, attention and best efforts to further the business and interests of the Company during the Term. The Company acknowledges that the Chairman is engaged in other business activities that commenced prior to this agreement and the Chairman declares that these other activities will not be an obstacle to the commitments he is undertaking under this agreement.

 

	
1.3

	
Duties. The Chairman's services hereunder will be provided on the basis of the following terms and conditions:

 

	
  

	
(a)

	
Reporting directly to the Board of Directors of the Company, the Chairman will serve as the Chairman of the Board of the Company;

 

 

2

 

 

	
  

	
(b)

	
The Chairman will be a member of the Board, and will be a partner with the Chief Executive in achieving the organization's mission.

 

	
  

	
(c)

	
The Chairman will provide leadership to the Board of Directors, to set policy and to whom the Chief Executive is accountable. The Chairman will chair meetings of the Board after developing the agenda with the Chief Executive.

 

	
  

	
(d)

	
The Chairman will discuss issues confronting the organization with the Chief Executive Officer. He will help, guide and mediate Board actions with respect to organizational priorities and governance concerns. The Chairman will review with the Chief Executive Officer any issues of concern to the Board and monitor financial planning and financial reports. The Chairman will formally evaluate the performance of the Chief Executive Officer and informally will evaluate the effectiveness of the Board members.

	
 

 

	
  

	
(e)

	
The Chairman will assist the Chief Executive Officer to plan and direct the organization's activities to achieve stated/agreed targets and standards for financial and trading performance, quality, culture and legislative adherence. He will recruit, select and develop Chairman team members and direct functions and performance via the Chairman team.

 

The Chairman will together with the Chief Executive Officer play a leading role in fundraising activities.

 

The Chairman will faithfully, honestly and diligently serve the Company and cooperate with the Company and utilize maximum professional skill and care to ensure that all services rendered hereunder are to the satisfaction of the Company, acting reasonably, and the Chairman will provide any other services not specifically mentioned herein, but which by reason of the Chairman's capability, the Chairman knows or ought to know to be necessary to ensure that the best interests of the Company are maintained.

 

The Chairman will assume, obey, implement and execute such duties, directions, responsibilities, procedures, policies and lawful orders as may be determined or given from time to time by the Company.

 

The Chairman will report the results of his duties hereunder to the Company as it may request from time to time.

 

The Chairman will serve as an active director of the Israeli Subsidiary.

 

ARTICLE 2

COMPENSATION

 

	
2..1

	
Remuneration.

 

	
  

	
(a)

	
For services rendered by the Chairman during the Term, the Chairman will be paid a monthly remuneration, payable within 10 days after the end of each month against an invoice, at a gross monthly rate of US$10,000 + VAT (the "Fee"). Subsequently, the Fee will increase to a gross monthly rate of USD $15,000 + VAT upon the completion of PDDs for two projects. The Fee will be paid in NIS translated pursuant to the official representative rate of exchange of the US$ as published by the Bank of Israel on the payment date. Any deductions required to be made by the Company and submitted to relevant tax or other authorities will be deducted at source. Payments may be made through the Israeli subsidiary of the Company.

 

 

3

 

 

	
  

	
(b)

	
The Chairman's position with the Company is included among the positions of management or those requiring a special degree of personal trust, and the Company is not able to supervise the number of working hours of the Chairman; therefore the provisions of the Israel Hours of Work and Rest Law - 1951, will not apply to the Chairman and he will not be entitled to any additional remuneration whatsoever for his work with the exception of that specifically set out in this Agreement.

 

	
2.2

	
Stock Options.

 

	
  

	

(a)

	

"Chairman's Stock Options":For the purposes of this Agreement, "Chairman's Stock Options" means nine (9%) percent of the common shares in the capital of the Company as of the Effective Date to vest in accordance with this paragraph 2.2 and the Company's Stock Option Plan.

 

	
  

	
(b)

	
As of the Commencement Date, the Company will grant to the Chairman the Chairman's Stock Options, exercisable at a price of $0,001 per share for a term of two years from the Commencement Date. At the end of each 3 months' employment hereunder, 12.5% of the Chairman's Stock Options shall vest. Other than in paragraph 2.2(c), common shares issued on exercise of the Chairman's Stock Options may not be sold for two years after the Effective Date.

 

	
  

	
(c)

	
Notwithstanding the foregoing, all of the Chairman's Stock Options will vest upon: (i) the Company ending the Chairman's employment pursuant to paragraph 5.3 hereunder without cause; or (ii) an event of a merger or acquisition by a third party of substantially all the Company or other "exit event" for all shareholders of the Company (each such event an "Exit"), in which Exit the Chairman will be entitled to exercise his Chairman's Stock Options and join with customary rights of "tag-along" and shall consequently be entitled to sell the entirety of his common shares at the Exit price per share of the selling shareholders in such Exit. Notwithstanding section (ii) above, in the event of an Exit where the Chairman is requested to remain employed by the Company on terms no less favorable to him than under this Agreement but he refuses to remain so employed, the Chairman's Stock Options will vest as per paragraph 2.2(b).

 

	
  

	
(d)

	
The terms regarding the Chairman's Stock Options shall be documented in a formal option agreement between the Company and the Chairman in the form appended as Schedule "A" to be executed simultaneously with this Agreement.

 

4

 

 

	
2.3

	
Incentive Plans The Chairman will be entitled to participate in any bonus plan or incentive compensation plans for its employees, adopted by the Company.

 

	
2.4

	
Expenses. The Chairman will be reimbursed by the Company for all reasonable business expenses incurred by the Chairman and pre-approved by the board in connection with his duties within previously approved budgets upon submission of a monthly statement of expenses. This includes, but not only, payments of expenses incurred when traveling abroad, per diem payments for travel abroad according to the rules set forth by the Israeli Tax Authorities and others.

 

	
2.5

	
Vacation: Recreation Pay. The Chairman will be entitled to cumulative paid vacations of twenty (20) days per year. In addition, the Chairman will be entitled to sick leave according to applicable law, but will not be entitled to Recreation Pay. The Chairman will not be entitled to any other benefits whatsoever.

 

	
2.6

	
Annual Review. The compensation payable and the method of payment to the Chairman under this Article 2 will be reviewed after 1 year from the date of this agreement by the Board of the Company.

 

ARTICLE 3

INSURANCE AND BENEFITS

 

	
3.1

	
Liability Insurance Indemnification. The Company will insure the Chairman (including his heirs, executors and administrators) with coverage under a standard directors' and officers' liability insurance policy at the Company's expense.

 

ARTICLE 4

CONFIDENTIALITY AND NON-COMPETITION

 

	
4.1

	
Maintenance of Confidential Information.

 

(a)           "Confidential Information": For the purposes of this Agreement, "Confidential Information" shall include all information of a confidential nature, that has been or will be disclosed to the Chairman by the Company or any person or entity on its behalf, and includes, without limitation, any and all developments, trade secrets, inventions, innovations, techniques, processes, formulas, drawings, designs, products, systems, creations, improvements, documentation, data, specifications, technical reports, customer lists, supplier lists, distributor lists, distribution channels and methods, retailer lists, reseller lists, employee information, financial information, sales or marketing plans, competitive analysis reports and any other thing or information whatsoever, whether copyrightable or uncopyrightable or patentable or unpatentable.

 

 

5

 

 

	
  

	
(b)

	
The Chairman acknowledges that, in the course of employment hereunder, the Chairman will, either directly or indirectly, have access to and be entrusted with Confidential Information (whether oral, written or by inspection) relating to the Company or its respective affiliates, associates or customers.

 

	
  

	
(c)

	
The Chairman acknowledges that the Company's Confidential Information constitutes a proprietary right, which the Company is entitled to protect. Accordingly, the Chairman covenants and agrees that, during the Term and for a period of two years thereafter, the Chairman will keep in strict confidence the Company's Confidential Information and will not, without prior written consent of the Company, disclose, use or otherwise disseminate the Company's Confidential Information, directly or indirectly, to any third party.

 

	
  

	
(d)

	
The Chairman agrees that, upon termination of his services for the Company, he will immediately surrender to the Company all Company Confidential Information then in his possession or under his control.

 

	
4.2

	
Exceptions. The general prohibition contained in Section 4.1 against the unauthorized disclosure, use or dissemination of the Company's Confidential Information will not apply in respect of any Company Confidential Information that:

 

	
  

	
(a)

	
is available to the public generally;

 

	
  

	
(b)

	
becomes part of the public domain through no fault of the Chairman;

 

	
  

	
(c)

	
is already in the lawful possession of the Chairman at the time of receipt of the Company's Confidential Information; or

 

	
  

	
(d)

	
is compelled by applicable law to be disclosed, provided that the Chairman gives the Company prompt written notice of such requirement prior to such disclosure and provides assistance at the request and expense of the Company, in obtaining an order protecting the Company's Confidential Information from public disclosure.

 

	
4.3

	
Fiduciary Obligation. The Chairman declares that the Chairman's relationship to the Company is that of fiduciary, and the Chairman agrees to act towards the Company and otherwise behave as a fiduciary of the Company.

 

	
4.4

	
Non Competition. The Chairman agrees and undertakes that he will not, so long as he is employed by the Company and for a period of 12 months following termination of his employment for whatever reason, directly or indirectly, as owner, partner, joint venture, stockholder, employee, broker, agent, principal, corporate officer, director, licensor or in any other capacity whatever engage in, become financially interested in, be employed by, or have any connection with any business or venture that competes with the Company's business, including any business which, when this Agreement terminates, the Company contemplates in good faith to be materially engaged in within 12 months thereafter, provided that the Company has taken demonstrable actions to promote such engagement or that the Company's Board of Directors has adopted a resolution authorizing such actions prior to the date of termination; provided, however, that Chairman may own securities of any corporation which is engaged in such business and is publicly owned and traded but in an amount not to exceed at any one time one percent (1%) of any class of stock or securities of such company, so long as he has no active role in the publicly owned and traded company as director, employee, consultant or otherwise.

 

 

6

 

 

	
4.5

	
No Solicitation.

 

	
  

	
(a)

	
"Customer": For the purposes of this Agreement, "Customer" means any Person who is, at any time during the Term and for a period of 12 months following termination of the Chairman's employment for any reason, a customer of the Company or any of its affiliates that the Chairman knew or ought reasonably to have known was a customer of the Company or any of its affiliates, or any Person with whom contact is made during such period for the purpose of persuading such Person to become a customer of the Company or any of its affiliates, provided that the Chairman knew or ought reasonably to have know such contact was made.

 

	
  

	
(b)

	
"Person": For the purposes of this Agreement, "Person" means an  individual, corporation, partnership, trustee, trust, unincorporated association, organization, syndicate, joint venture, limited liability company, executor, administrator or other legal or personal representative, government entity or any other entity recognized by law.

 

	
  

	
(c)

	
The Chairman covenants and undertakes that he will not, at any time during the Term and for a period of 12 months following termination of his employment for any reason, directly or indirectly, in any way:

 

	
  

	
(i)

	
solicit, hire or engage the services of any employee or consultant the Company or its affiliates or persuade or attempt to persuade any such individual to terminate his employment or relationship with the Company or any of its Affiliates;

 

	
  

	
(ii)

	
persuade or attempt to persuade any Customer to restrict, limit or discontinue purchasing or retaining the services provided by the Company or any of its affiliates to any such Customer or to reduce the amount of business which any such Customer has customarily done, or contemplates doing, with the Company or any of its affiliates in respect of the Company's business, or to solicit or take away, or attempt to solicit or take away, from the Company or any of its affiliates any of its Customers in respect of the Company's business.

 

 

7

 

 

	
4.6

	
Remedies. The parties to this Agreement recognize that any violation or threatened violation by the Chairman of any of the provisions contained in this Article 4 will result in immediate and irreparable damage to the Company and that the Company could not adequately be compensated for such damage by monetary award alone. Accordingly, the Chairman agrees that, in the event of any such violation or threatened violation, the Company will, in addition to any other remedies available to the Company at law or in equity, be entitled as a matter of right to apply to such relief by way of restraining order, temporary or permanent injunction and to such other relief as any court of competent jurisdiction may deem just and proper.

 

	
4.7

	
Reasonable Restrictions. The Chairman agrees that all restrictions in this Article 4 are reasonable and valid in order to protect the business and proprietary interests of the Company, both as to the duration of time and any geographic limitation therein provided, based on the present business, plans and prospects of the Company and that compliance with the provisions of this Agreement will be unduly burdensome on him or deprive him of a means of livelihood.

 

ARTICLE 5

TERMINATION

 

	
5.1

	
Definitions

 

	
  

	
(a)

	
"Cause": For the purposes of this Agreement, "Cause" means that the Chairman has:

 

	
  

	
(i)

	

committed an intentional act of fraud, embezzlement or theft in connection with the Chairman's duties or in the course of the Chairman's employment with the Company;

 

	
  

	
(ii)

	
intentionally and wrongfully damaged property of the Company, or any of its respective affiliates, associates or customers;

 

	
  

	
(iii)

	
intentionally or wrongfully disclosed any of the Confidential Information;

 

	
  

	
(iv)

	
made material personal benefit at the expense of the Company without the prior written consent of the management of the Company;

 

	
  

	
(v)

	
accepted shares or options or any other gifts or benefits from a vendor without the prior written consent of the management of the Company;

 

	
  

	
(vi)

	
fundamentally breached any of the Chairman's material covenants contained in this Agreement; or

 

8

 

 

	
  

	
(vii)

	
willfully and persistently, without reasonable justification, failed or refused to follow the lawful and proper directives of the Company specifying in reasonable detail the alleged failure or refusal and after a reasonable opportunity for the Chairman to cure the alleged failure or refusal.

 

	
  

	
(b)

	
"Terminated For No Cause". For the purposes of this Agreement, "Terminated For No Cause" means any event of termination that is not a result of the events described in clause 5.1(a) above.

 

	
  

	
(c)

	
"Intentional": For the purposes of this Agreement, an act or omission on the part of the Chairman will not be deemed "intentional," if it was due to an error in judgment or negligence, but will be deemed "intentional" if done by the Chairman not in good faith and without reasonable belief that the act or omission was in the best interests of the Company, or its respective affiliates, associates or customers.

 

	
  

	
(d)

	
"Disability": For the purposes of this Agreement, "Disability" will mean any physical or mental illness or injury as a result of which the Chairman remains absent from work for a period of six (6) successive months, or an aggregate of six (6) months in any twelve (12) month period. Disability will occur upon the end of such six-month period.

 

	
5.2

	
Termination For Cause or Disability. This Agreement may be terminated at any time by the Company without notice, for Cause or in the event of the Disability of Chairman.

 

	
5.3

	
Termination For No Cause. This agreement may be Terminated For No Cause by any of the parties with a prior notice of 6 months if terminated within a period of 24 months from the closing date or with a notice of 3 months if terminated after 24 months from the closing date. During the notice period, both parties to this Agreement will fulfil their duties and obligations under this Agreement.

 

	
5.4

	
Severance for Termination With Cause. If the Company terminates the Chairman's employment for Cause, then the Company will not be obligated to pay the Chairman any severance payments or provide any notice whatsoever to the Chairman.

 

	
5.5

	
Limitation of Damages. It is agreed that, in the event of termination of employment, neither the Company, nor the Chairman will be entitled to any notice, or payment in excess of that specified in this Article 5.

 

	
5.6

	
Return of Materials. Within three (3) days of any termination of employment hereunder, or upon any request by the Company at any time, the Chairman will return or cause to be returned any and all Confidential Information and other assets of the Company (including all originals and copies thereof), which "assets" include, without limitation, hardware, software, keys, security cards and backup tapes that were provided to the Chairman either for the purpose of performing the employment services hereunder or for any other reason. The Chairman acknowledges that the Company's Confidential Information and the assets are proprietary to the Company, and the Chairman agrees to return them to the Company in the same condition as the Chairman received such Confidential Information and assets.

 

9

 

 

	
5.7

	
Effect of Termination. Sections 4, 5.5 and 8.11 hereto will remain in full force and effect after termination of this Agreement, for any reason whatsoever

 

ARTICLE 6

MUTUAL REPRESENTATIONS

 

	
6.1

	
The Chairman represents and warrants to the Company that the execution and delivery of this Agreement and the fulfillment of the terms hereof

 

	
  

	
(a)

	
will not constitute a default under or conflict with any agreement or other instrument to which he is a party or by which he is bound, and

 

	
  

	
(b)

	
do not require the consent of any person or entity.

 

	
6.2

	
The Company represents and warrants to Chairman that this Agreement has been duly authorized, executed and delivered by the Company and that the fulfillment of the terms hereof

 

	
  

	
(a)

	
will not constitute a default under or conflict with any agreement of other instrument to which it is a party or by which it is bound, and

 

	
  

	
(b)

	
do not require the consent of any person of entity.

 

	
6.3

	
Each party hereto warrants and represents to the other that this Agreement constitutes the valid and binding obligation of such party enforceable against such party in accordance with its terms subject to applicable bankruptcy, insolvency, moratorium and similar laws affecting creditors' rights generally, and subject, as to enforceability, to general principles of equity (regardless if enforcement is sought in proceeding in equity or at law).

 

ARTICLE 7

NOTICES

 

	
7.1

	
Notices. All notices required or allowed to be given under this Agreement must be made either personally by delivery to or by facsimile transmission to the address as hereinafter set forth or to such other address as may be designated from time to time by such party in writing:

 

	
  

	
(a)

	
in the case of the Company, to:

 

Blue Sphere Corporation

409 - 4th Floor, Tsui King House

Choi Hung Estate Hong Kong

 

Attn: Cally Lai

 

	 	
(b)

	
and in the case of the Chairman, to 6 Hayarkon St. Haifa.

 

 

10

 

 

	
7.2

	
Change of Address. Any party may, from time to time, change its address for service hereunder by written notice to the other party in the manner aforesaid.

 

ARTICLE 8

GENERAL

 

	
8.1

	
Entire Agreement. As of from the date hereof, any and all previous agreements, written or oral between the parties hereto or on their behalf relating to the employment of the Chairman by the Company are null and void. The parties hereto agree that they have expressed herein their entire understanding and agreement concerning the subject matter of this Agreement and it is expressly agreed that no implied covenant, condition, term or reservation or prior representation or warranty will be read into this Agreement relating to or concerning the subject matter hereof or any matter or operation provided for herein.

 

	
8.2

	
Personal Agreement. The provisions of this Agreement are in lieu of the provisions of any collective bargaining agreement, and therefore, no collective bargaining agreement will apply with respect to the relationship between the parties hereto (subject to the applicable provisions of law).

 

	
8.3

	
Further Assurances. Each party hereto will promptly and duly execute and deliver to the other party such further documents and assurances and take such further action as such other party may from time to time reasonably request in order to more effectively carry out the intent and purpose of this Agreement and to establish and protect the rights and remedies created or intended to be created hereby.

 

	
8.4

	
Waiver. No provision hereof will be deemed waived and no breach excused, unless such waiver or consent excusing the breach is made in writing and signed by the party to be charged with such waiver or consent. A waiver by a party of any provision of this Agreement will not be construed as a waiver of a further breach of the same provision.

 

	
8.5

	
Amendments in Writing. No amendment, modification or rescission of this Agreement will be effective unless set forth in writing and signed by the parties hereto.

 

	
8.6

	
Assignment. Except as herein expressly provided, the respective rights and obligations of the Chairman and the Company under this Agreement will not be assignable by either party without the written consent of the other party and will, subject to the foregoing, enure to the benefit of and be binding upon the Chairman and the Company and their permitted successors or assigns. Nothing herein expressed or implied is intended to confer on any person other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

 

11

 

 

	
8.7

	
Severability. In the event that any provision contained in this Agreement is declared invalid, illegal or unenforceable by a court or other lawful authority of competent jurisdiction, such provision will be deemed not to affect or impair the validity or enforceability of any other provision of this Agreement, which will continue to have full force and effect.

 

	
8.8

	
Headings. The headings in this Agreement are inserted for convenience of reference only and will not affect the construction or interpretation of this Agreement.

 

	
8.9

	
Number and Gender. Wherever the singular or masculine or neuter is used in this Agreement, the same will be construed as meaning the plural or feminine or a body politic or corporate and vice versa where the context so requires.

 

	
8.10

	
Time. Time is of the essence in this Agreement.

 

	
8.11

	
Governing Law. This Agreement will be construed and interpreted in accordance with the laws of the State of Israel applicable therein, and each of the parties hereto expressly attorns to the jurisdiction of the courts of the State of Israel. The sole and exclusive place of jurisdiction in any matter arising out of or in connection with this Agreement will be the applicable Tel-Aviv court.

 

	
8.12

	
Enurement. This Agreement is intended to bind and enure to the benefit of the Company, its successors and assigns, and the Chairman and the personal legal representatives of the Chairman.

 

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

 

	 	 	 		 
	
Per:

	 	 	  	 
	 	
Blue Sphere Corporation

	 	
Eli Weinberg

	 
	 	 	 	 	 
	
Name:

	Cally Lai	 	  	 
	
Title:

	President	 	  	 

 

12

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