Document:

exhibit_10-1.htm

Exhibit 10.1

EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is entered into as of the 10th day of September 2012, by and between Win Global Markets Inc (Israel) Ltd., a company incorporated under the laws of Israel located at 55 Igal Alon St., Tel Aviv 67891, Israel (the "Company"), and Guy Elhanani, Israeli ID number     of     ("Guy"). Each of the Company and Guy may be referred to herein as a "Party" and collectively as the "Parties".

 

WHEREAS The Company wishes to employ Guy as the Company's Chief Financial Officer ("CFO") as of October 11, 2012, and Guy represents that he has the requisite skill and knowledge to serve in such position, and he desires to engage in such employment, according to the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in consideration of the respective agreements of the Parties contained herein, the Parties agree as follows:

 

	
1.

	
Employment

 

	
  

	
(a)

	
The Company agrees to employ Guy and Guy agrees to be employed by the Company on the terms and conditions set out in this Agreement. The employment of the CFO shall commence on October 11, 2012 (the "Effective Date").

 

	
  

	
(b)

	
Guy shall be employed as the Company's CFO. Guy shall perform the duties, undertake the responsibilities and exercise the authority customarily performed, undertaken and exercised by persons employed in a similar capacity, subject to the direction of the Company’s CEO (the "CEO") and shall report regularly to the CEO with respect to his activities.

 

	
  

	
(c)

	
Excluding periods of vacation, sick leave and military reserve service to which the CFO is entitled or required, the CFO agrees to devote his full working time and attention to the business and affairs of the Company and its subsidiaries as required to discharging the responsibilities assigned to the CFO hereunder. During the term of this Agreement, the CFO shall not be engaged in any other employment with another business entity.

 

	
  

	
(d)

	
This Agreement is a personal agreement governing the employment relationship between the Parties hereto. This Agreement shall not be subject to any general or special collective employment agreement relating to employees in any trade or position that is the same or similar to the CFO's position, unless specifically provided herein.

 

	
  

	
(e)

	
Since the CFO position, duties and responsibilities hereunder are in the nature of management duties that demand a special degree of personal loyalty and in the nature which does not enable the Company to supervise his work and rest hours, the provisions of the Law of Work Hours and Rest 5711 – 1951 shall not apply to the terms of the CFO’s employment hereunder. Accordingly, the statutory limitations of such law shall not apply to this Agreement. The CFO shall not be entitled to additional compensation from the Company for working additional hours or working on rest days, as required by the Company.

 

  

  

  

 

	
2.

	
Representations and Warranties of the CFO

 

The CFO represents and undertakes all of the following:

 

	
  

	
(a)

	
There are no other undertakings or agreements preventing him from committing himself in accordance with this Agreement and performing his obligations under it.

 

	
  

	
(b)

	
To the best of the CFO’s knowledge, the CFO is not currently, nor will he by entering into this Agreement be deemed to be, violating any rights of his former employer and/or in breach of any of his obligations towards his former employer.

 

	
  

	
(c)

	
The CFO shall inform the Company, immediately upon becoming aware of, on every matter in which he or his immediate family members have a personal interest and which might create a conflict of interests with his duties under his employment hereunder.

 

	
  

	
(d)

	
In carrying out the duties under this agreement, the CFO shall not make any representations or give any guarantees on behalf of the Company, except as expressly and in advance authorized to do so.

 

	
  

	
(e)

	
The CFO acknowledges and agrees that from time to time he may be required by the Company to travel and stay abroad as part of his duties towards the Company. The company will bear all the expenses of such travel.

 

	
  

	
(f)

	
The CFO shall not receive any payment and/or benefit from any third party, directly or indirectly in connection with his employment. In the event the CFO breaches this undertaking, without derogating from any of the Company’s right by law or contract, such benefit or payment shall become the sole property of the Company and the Company may set-off the value thereof from any sums due to the CFO from the Company.

 

	
  

	
(g)

	
The CFO undertakes to use the Company’s equipment and facilities only for the purpose of his employment. The CFO acknowledges and agrees that the Company is entitled to conduct inspections within the Company’s offices and on the Company’s computers, including inspections of electronic mail transmissions, Internet usage and inspections of their content, for the Company’s relevant needs. For the avoidance of any doubt, it is hereby clarified that all examination’s finding shall be the Company’s sole property.

 

	
3.

	
Salary

 

In consideration for the employment of the CFO with the Company, the Company shall pay the CFO a monthly gross salary (the "Base Salary") of NIS 30,000 (thirty thousand New Israeli Shekels),

 

The Base Salary shall be payable monthly in arrears, no later than the 9th day of each month. The Company shall deduct from the Base Salary, and from any other payment hereunder, all the deductions as required under the law.

 

  

2

  

 

	
4.

	
CFO Benefits

 

During the term of this Agreement, the CFO shall be entitled to the following benefits:

 

	 	
(a)

	
Motor Vehicle. On the Effective Date, the Company shall provide Guy a motor vehicle from Group 4 according to the Tax Regulations – Value of the Use of Vehicle 57-47 1987 (the "Car"). Terms and conditions of possession and use of the Car, including gasoline, insurance and replacement, shall be established by the Company in accordance with policies established for the employees of the Company. Income tax imposed on Guy in connection with the use of the Car shall be borne by Guy. Guy shall not be entitled to compensation for fines for traffic violations the Company shall be responsible to any policyholder's participation payments ("Hishtatfut Atzmit") in relation to the Car.

 

	 	
(b)

	
Sick Leave. Guy shall be entitled to fully paid sick leave pursuant to the Sick Pay Law 5736 – 1976. Unused sick days may be accrued by the Guy in accordance with the law.

 

	 	
(c)

	
Vacation. Guy shall be entitled to 18 days annual vacation. Unused vacation days may be accrued by the CFO in accordance with the law. The CFO shall be entitled to redeem vacation days in accordance with the law.

 

	 	
(d)

	
Stock Options. The Company shall grant Guy 400,000 (four hundred thousand) Options (the "Options"), of Win Global Markets, Inc. The Options shall be subject to the Stock Option Agreement to be entered into between the Company and Guy. The Options shall be granted upon the commencement of employment (the "Effective Date") and under the following terms:

 

	
  

	
(1)

	
The Options shall be subject to the terms of the Company’s Stock Option Plan, and the Stock Option Agreement to be entered into between the Company and the CFO;

 

	
  

	
(2)

	
The Options shall vest over a period of thirty six (36) months as of the Effective Date (the "Vesting Period"), in accordance with the following vesting schedule, provided that Guy shall remain employee of the Company at the end of each relevant vesting period. The Options shall vest on a three-month basis, as of the lapse of three (3) month following the Effective Date and until the lapse of the Vesting Period, in twelve (12) installments, each of which shall be equal to 1/12 of the total number of Options. Following the termination of the Guy's employment with the Company, all unvested Options shall ipso facto terminate and become null.

 

	
  

	
(3)

	
Vested Options shall be exercisable at a purchase price of US$ 0.10 (ten cents) per share.

 

	
  

	
(4)

	
The options have terms of 5 years from the date of grant.

 

	 	
(e)

	
Guy shall be responsible for payment of any taxes resulting from the grant or exercise of the Options. The Company shall deduct at source all the deductions which the Company is obliged to make for tax imposed upon the grant or exercising of the Options.

 

	 	
(f)

	
Rest Home Allowance ("Dmei Havra’a"). Guy shall be entitled to "Dmei Havra’a" as determined under applicable law.

 

	 	
(g)

	
Social Benefits. Guy shall be entitled to receive from the Company the following contributions:

 

	 	
b.

	
Pension Fund. The Company shall insure Guy under an accepted Pension Fund (the "CFO's Insurance"), as follows: (i) the Company shall pay an amount equal to 5% of the Base Salary towards the CFO's Insurance for the Guy’s benefit and shall deduct 5% from the Base Salary and pay such amount towards the Pension Fund for Guy’s benefit (and by signing this Agreement, Guy gives his consent for such deduction); (ii) the Company shall pay an amount equal to 8.33% of the Base Salary for severance compensation; and (iii) the Company shall pay an amount of up to 1-1.5% of the Base Salary towards disability insurance.

 

  

3

  

 

	 	
c.

	
Education Fund ("Keren Hishtalmut"). The Company shall insure Guy under an accepted Education Fund as follows: (i) the Company shall pay an amount equal to 7.5% of the Base Salary towards the CFO's Education Fund for the Guy’s benefit and shall deduct 2.5% from the Base Salary and pay such amount towards the Education Fund for Guy’s benefit (and by signing this Agreement, Guy gives his consent for such deduction);

 

	 	
d.

	
It is agreed that the CFO shall bear all the tax imposed under any applicable law with respect to any payment made toward the Pension Fund and/or Continuing Education Fund which exceeds the maximum amount exempt from tax payment under applicable laws.

 

	 	
(h)

	
Expenses Reimbursement: The Company will reimburse Guy for all reasonable, business-related expenses and disbursements incurred by the Guy in carrying out his duties under this Agreement and against the submission of receipts, provided however that such expenses shall be approved by the Board.

 

	 	
(i) 

	
Cellular Phone: The Company shall provide Guy mobile phone for his use.

 

	 	
(j) 

	
Incentive Performance Bonus (IPB):

Guy will be eligible to participate in the annual DISCRETIONARY year end Incentive Performance Bonus (IPB). Guy's eligibility for an annual discretionary IPB and, in the event that Guys is awarded a bonus, the amount of that bonus shall be determined on the basis of factors determined by the Company in it's absolute discretion. Such factors may include: the profitability of the company and its affiliates, Guy's division and department; Guy's individual performance, conduct and contribution; and the strategic needs of the company and its affiliates.

 

Any IPB paid to Guy may, at the discretion of the company include:

- a cash payment

- a deferred cash award

- options

To be eligible to receive discretionary IPB awards Guy must still be actively employed by the company on the payment date and must not have, at the payment date, either given or received notice of termination of employment for any reason whatsoever.

Furthermore, if at any time before the payment date, Guy's employment terminates for any reason, or Guy has given or received notice of termination, Guy will not be entitled to any pro- rated bonus.

 

	 	
(k) 

	
Indemnification of CFO; D&O Insurance: Within 30 (thirty) days as of the execution of this Agreement, the Company shall execute and furnish Guy with an Indemnification Agreement in the form that will be approved by the Board. The Company will add Guy to the Company's existing directors’ and officers' liability insurance ("D&O Insurance"). In any case, the D&O Insurance shall be as broad as any such insurance obtained for any other officer of the Company.

 

  

4

  

 

	 	
(l) 

	
Any benefit provided by the Company to Guy under section 4 to this Agreement shall not be considered as part of the Guy’s salary for purposes of calculating the Guy’s social and other benefits, such as severance payments, redemption of unused vacation days etc., and such social and other benefits shall be calculated only out of the Base Salary.

 

	
5.

	
Termination

 

	
  

	
(a)

	
This Agreement shall be in effect for an undefined period of time commencing on the Effective Date (the "Term"). The Company and the CFO may terminate this Agreement and the employee-employer relationship between the Parties at any time upon 30 days written notice to the other Party (the "Notice Period") specifying the effective date of termination (the "Termination Date").

 

	
  

	
(b)

	
During the Notice Period, the CFO shall work in the Company and shall be entitled to compensation pursuant to Section 3 and to all of the benefits set forth in Section 4.

 

	
  

	
(c)

	
Notwithstanding the foregoing, the Company may immediately terminate the employment relationship with the CFO for Cause (as defined below), without paying the CFO any payment with respect to the term commencing following such termination, and such termination shall be effective as of the time of notice of the same. "Cause" means (a) a material breach of this Agreement; (b) any willful failure to perform or willful failure to perform competently any of the Company's instructions or any of the CFO's fundamental functions or duties hereunder; (c) engagement in willful misconduct or acting in bad faith with respect to the Company, (d) conviction of a felony involving moral turpitude; or (e) any cause justifying termination or dismissal in circumstances in which the Company can deny the CFO severance payment under applicable law.

 

	
  

	
(d)

	
During the Notice Period, the CFO shall work in the Company, shall transfer his position to his replacement in an orderly and complete manner and shall return to the Company all documents, professional literature and equipment belonging to the Company, which may be in his possession at such time.

 

	
  

	
(e)

	
At the end of the Notice Period and following termination of agreement according to clause (c) above, the Company shall transfer to the CFO ownership of his Pension Fund and Continuing Education Fund.

 

	
6.

	
Competitive Activity

 

	
  

	
(a)

	
During the term of this Agreement and for a period of twelve (12) months thereafter, the CFO will not directly or indirectly: Carry on or hold an interest in any company, venture or other entity which competes directly or indirectly with the products or services of the Company or any subsidiary of the Company (a "Competing Business").

 

	
  

	
(b)

	
Act as a consultant or CFO or officer or in any capacity in a Competing Business or supply services in competition with the Company or its subsidiaries services ("Restricted Services") to any person or entity which was provided with services/products by the Company or its subsidiaries at any time during the twelve (12) months immediately prior to the Termination Date.

 

	
  

	
(c)

	
Solicit, canvass or approach or endeavor to solicit, canvass or approach any person or entity which was provided with services/products by the Company or its subsidiaries at any time during the twelve (12) months immediately prior to the Termination Date, for the purpose of offering Restricted Services or products which compete with the products supplied by the Company or its subsidiaries at the Termination Date.

 

  

5

  

 

	
  

	
(d)

	
Employ, solicit or entice away or endeavor to solicit or entice away from the Company or its subsidiaries any person employed (whether as an employee or as a consultant) by the Company or its subsidiaries at any time during the twelve (12) months immediately prior to the Termination Date with a view to inducing that person to leave such employment and to act for another employer in the same or a similar capacity.

 

	
7.

	
Confidentiality and IP Rights

 

	
  

	
(a)

	
In view of the fact that the CFO's work as an employee of the Company will bring the CFO into close contact with many confidential affairs of the Company and its affiliates, including matters of a business nature, such as information about customers, costs, profits, markets, sales and any other information not readily available to the public, such as technical information related to the Company’s products and/or technology as well as plans for future developments, the CFO agrees:

 

	
  

	
(i)

	
To keep secret all confidential matters of the Company and its affiliates and not to disclose them to anyone outside of the Company, either during or after the CFO's employment with the Company, except with the Company's prior written consent; and

 

	
  

	
(ii)

	
To deliver promptly to the Company on termination of the CFO's employment by the Company, or at any time the Company may so request, all memoranda, notes, records, reports and other documents (and all copies thereof) relating to the Company's and its affiliates' businesses which the CFO may then possess or have under the CFO's control.

 

	
  

	
(b)

	
The CFO agrees to execute any separate confidentiality agreements required by the Company.

 

	
  

	
(c)

	
The CFO agrees that all memoranda, books, notes, records (contained on any media whatsoever), charts, formula, specifications, lists and other documents made, compiled, received, held or used by the CFO while employed by the Company, concerning any phase of the Company’s business, products, services or trade secrets, shall be the Company’s sole property and shall be delivered by the CFO to the Company upon termination of the CFO's employment or at any earlier or other time at the request of the Company, without the CFO retaining any copies thereof.

 

	
  

	
(d)

	
The CFO will promptly disclose to the Company, or any persons designated by it, all information, improvements, inventions, formulae, processes, techniques, know-how and data, whether or not patentable, made or conceived or reduced to practice or learned by the CFO, either alone or jointly with others, during the CFO's employment with the Company (including after hours, on weekends or during vacation time) (all such information, improvements, inventions, formulas, processes, techniques, know-how and data are hereinafter referred to as the: "Inventions").

 

	
  

	
(e)

	
The CFO agrees that all the Inventions shall be the sole property of the Company and its assigns, and the Company and its assigns shall be the sole owner of all patents and other rights in connection with such Inventions. The CFO hereby assigns to the Company any rights the CFO may have or acquire in such Inventions.

 

	
  

	
(f)

	
The CFO further agrees as to all such Inventions to assist the Company, or any persons designated by it, in every proper way to obtain and from time to time enforce such Inventions in any way including by way of patents on such Inventions in any and all countries, and that the CFO will execute all documents for use in applying for and obtaining patents on and enforcing such Inventions, as the Company may desire, together with any assignments of such Inventions to the Company or persons or entities designated by it.

 

  

6

  

 

	
8.

	
Miscellaneous

 

	
  

	
(a)

	
Law and Venue. The validity, construction and performance of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Israel, without giving effect to the principles of conflict of laws thereof. The competent courts of the city of Tel Aviv-Jaffa, Israel shall have exclusive jurisdiction to settle all disputes arising in connection with this Agreement and no other courts shall have any jurisdiction whatsoever in respect of such disputes.

 

	
  

	
(b)

	
Counterparts and Signatures. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

	
  

	
(c)

	
Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Company, its successors and assigns, and the Company shall require such successor or assign to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. The term "successors and assigns" as used herein shall mean a corporation or other entity acquiring all or substantially all the assets and business of the Company (including this Agreement) whether by operation of law or otherwise.

 

	
  

	
(d)

	
Non-Waiver The waiver, express or implied, by either Party hereto of any rights hereunder or of any failure to perform or of a breach hereof by the other Party hereto shall not constitute or be deemed a waiver of any other right hereunder or any other failure to perform or a breach hereof by the other Party hereto, whether of a similar or dissimilar nature.

 

	
  

	
(e)

	
Entire Agreement. This Agreement and the Exhibits attached hereto constitute the entire agreement between the Parties with respect to the subject matter hereof and supersedes any prior agreement, written or oral, including the terms of any negotiations in connection with or relating to this Agreement.

 

	
  

	
(f)

	
Modification of Agreement. No addition or modification of this Agreement shall be effective or binding on either of the Parties hereto unless reduced to writing and executed by the respective duly authorized representatives of each of the Parties hereto.

 

	
  

	
(g)

	
Notice. Any notices to be given hereunder shall be served on a Party by prepaid registered letter, facsimile or telegram to its address given herein or such other address as may from time to time be notified for this purpose. Any notice given by letter shall be deemed to have been served four days after the time at which it was posted and any notice given by facsimile or telegram shall be deemed to have been served 24 hours after it is dispatched.

 

	
  

	
(h)

	
Severability. The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

	
  

	
(i)

	
Employment Terms Notice. For the purpose of delivering a notice with respect to the employment terms pursuant to the Law of Notice to Employee (Employment Terms), 5762 – 2002, this Agreement shall be considered as complying with the requirements under such Law.

 

  

7

  

 

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

 

	
/s/ Shimon Citron

Win Global Markets Inc (Israel) Ltd.

	/s/ Guy Elhanani___________ 

Guy Elhanani

 

8exhibit_10-2.htm

Exhibit 10.2

 

Service Agreement

 

This Service Agreement ("Agreement") is entered in to this 5th day of September 2012 ("Effective Date"), by and between WGM SERVICES LTD. ("WGM"), a corporation incorporated under the laws of Cyprus with its offices located at 48 Themistokli Dervi Avenue, Nicosia 1066, Cyprus; and Relevanti Media (Israel) Ltd. located at 48 Derech Menachem Begin, Tel Aviv 66180, Israel ("Supplier"). Each WGM and the Supplier may be referred to herein as a "Party" and collectively as the "Parties".

 

WHEREAS, WGM is in the business of operating Binary Option trading websites; and

WHEREAS, WGM wishes to procure certain Services (as defined in Schedule A) to be rendered to its business by Mr. Oleg Golynker; and

WHEREAS, Supplier possesses the required knowhow, ability and expertise to provide WGM with the Services as defined hereinafter;

NOW, THEREFORE, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties, and covenants herein contained, the Parties agree as follows.

 

	
1.

	
Definitions. For the purposes of this Agreement, the following definitions shall apply to the respective capitalized terms.

 

	
  

	
1.1.

	
"Services" means the services that Supplier shall provide WGM, as set out in article 2 and in Schedule A.

 

	
  

	
1.2.

	
"Confidential Information" means any data or information of WGM, including oral, written or electronic data or information, not made available to the general public, including past, present or future research, development or business activities, and including without limitation, any information relating to developments, inventions, processes, plans and financial information of WGM, and that was obtained by the Supplier during, by or through its connections with WGM and the Services provided by it to WGM.

 

	
  

	
1.3.

	
"Intellectual Property Rights" means all the intangible legal rights, titles, and interest including, but without limitation (i) any and all patents (whether in the form of utility patents or design patents), patent application (whether pending or not), and patent disclosures, together with all re-issuances, continuations, continuations-in-part, revisions, extensions, and reexaminations thereof; (ii) all trademarks, service marks, logos, trade names and corporate names, together with all translations, adaptations, derivations and combinations thereof and all applications, registrations and renewals in connection therewith; (iii) all copyrightable works, copyrights, which have been, or which may be, registered in the future and all applications, registrations and renewals in connection therewith; (iv) all trade secrets and Confidential Information; (v) all other proprietary rights, industrial rights, commercial rights and any other similar rights, all of the above on a worldwide basis.

 

  

  

  

 

	
2.

	
The Services

 

	
  

	
2.1.

	
The Supplier shall provide WGM with the Services, as set out in Schedule A, and as may be modified by the parties from time to time.

 

	
  

	
2.2.

	
The Services shall be performed by the Supplier, in a professional and timely manner and in strict accordance with the instructions and specifications to be given by WGM to the Supplier, from time to time. The Supplier shall use the highest degree of skill, diligence, and expertise in performing the Services.

 

	
  

	
2.3.

	
The Services shall be performed by the Supplier on a monthly basis as of the effective Date or on a later date as agreed upon by the parties in writing.

 

	
  

	
2.4.

	
The Supplier may not assign any and/or all of its obligations under this Agreement to any third party without the prior written consent of WGM.

 

	
3.

	
Consideration

 

	
  

	
3.1.

	
In consideration for the services rendered to WGM, WGM shall pay the Supplier a monthly Payment of USD 10,000 ("Payment").

 

	
  

	
3.2.

	
The Payment shall be paid to the Supplier no later than the 10th day of each month for the previous month subject to an invoice issued by the supplier. It is clarified that the Supplier shall not be entitled to receive from WGM any other consideration and/or expenses other than the Payment for services it renders to WGM.

 

	
  

	
3.3.

	
All payments hereunder shall be perceived to include all taxes however designated and levied by any state, local, or government agency and the Supplier shall bear full responsibility for all tax obligations relating to the Payment under this agreement.

 

	
  

	
3.4.

	
The Supplier shall be solely responsible for the payment of any and all taxes that it may be liable for and obligated to pay under this Agreement, including all business taxes and/or income tax and/or social security payments and any other taxes that may arise out of the Supplier's activities and performances under this Agreement.

 

	
  

	
3.5.

	
All payments to be made to WGM hereunder shall be paid in US Dollars.

 

	
  

	
3.6.

	
It is agreed between the Parties that after the termination of this Agreement, for any reason, the Supplier shall not be entitled to receive any kind of payment from WGM, the Customers generated by it and for any other reason.

 

	
  

	
3.7.

	
WGM shall not be liable for any expenses incurred by the Supplier or any of its employees, agents or who on its behalf and which arise out of or in connection with this Agreement. Furthermore, WGM shall have no obligation whatsoever to the Supplier by reason of expiration or termination hereof, for loss of profits or anticipated profits, reimbursement of expenditures, and shall not be responsible for any such losses of any kind regarding the termination or expiration of this Agreement. Also, Supplier will have no claims whatsoever, e.g. for compensation of damages, adjustment or release due to any of the goodwill created due to lost of profit, due to expenditures for replacement or renewal of corresponding business activities as replacement for expenses or the loss of rights connected in this Agreement or rights of retention in any way.

 

  

  

  

 

 

	
4.

	
Independent Contractor

 

	
  

	
4.1.

	
The Supplier shall be considered as an independent contractor and elected to provide the Services to WGM as an independent contractor. There shall be no employee-employer relationship whatsoever between WGM and the Supplier.

 

	
  

	
4.2.

	
If, despite the parties' explicit intent as reflected in this Agreement, a competent court determines (following a claim/demand of the Supplier and/or of Mr. Oleg Golynker and/or of any other person/entity on their behalf) the existence of an employer-employee relationship between the WGM and the Supplier and decides that the Supplier is entitled to payments and/or other benefits in connection with such employment relationship, then the Supplier shall indemnify the WGM and hold it harmless from any loss or damage incurred by WGM as a result of, or in connection with, such court decision, including reasonable expenses and legal fees, and the following provisions shall apply:

 

	
  

	
4.2.1.

	
In lieu of the Consideration/ Payment as defined in article 3 that was paid to the Supplier by the WGM as of the Effective Date, the Supplier shall be deemed to be entitled to receive a reduced consideration, which equals to sixty percent (60%) of the payment during the Term (the "Reduced Consideration"). The Supplier's entitlement to the Reduced Consideration shall be regarded as gross compensation and shall apply retroactively as of the Effective Date.

 

	
  

	
4.2.2.

	
The Supplier shall be under a duty to immediately refund WGM any amount paid on account of the Commission paid by WGM as of the Effective Date in excess of the Reduced Consideration. The Company may offset any such amounts from any payment due to the Supplier pursuant to such court’s decision.

 

	
5.

	
Term and Termination

 

	
  

	
5.1.

	
This Agreement shall be in effect commencing on the Effective Date and shall continue until December 31, 2012 ("Termination Date").

 

	
  

	
5.2.

	
Both Parties may terminate this Agreement, for any reason and without cause, prior to the Termination Date upon giving the other Party no less than a Seven (7) day prior written notice ("Prior written Notice").

 

	
6.

	
Proprietary Rights and Confidential Information

 

	
  

	
6.1.

	
Any and all written materials, designs and design specifications, website presentation layer, translations and any and all other content and products produced by the Supplier in the performance of the Services (the "Work Products") will be considered and deemed to be the sole property of WGM and shall be deemed to be a work for hire and made in the course of the Services performed hereunder.

 

	
  

	
6.2.

	
The Supplier warrants that it will use the Confidential Information of WGM and all other data relating thereto solely for the purposes of this Agreement and that it will not, at any time during or any time after the completion, expiry or termination of this Agreement, use or disclose the WGM’s Confidential Information, whether directly or indirectly, to any third party without the WGM's prior written consent. Supplier further undertakes that it will not itself or through any subsidiary, agent or employee use, sell, license, sub-license, create, develop or otherwise deal in any Confidential Information provided to it by WGM or obtained while performing this Agreement. Supplier will ensure that each of its employees and/or agents will comply with the provisions contained in this clause.

 

  

  

  

 

	
7.

	
Representations and Warranties of Supplier.

 

Supplier represents and warrants as follows:

 

	
  

	
7.1.

	
The execution and the delivery of this Agreement, will not (i) violate any material Legal Requirement to which the Supplier is subject to, (ii) result in a material breach or violation of, or default under, or constitute an event which would with the passage of time or the giving of notice or both constitute a default under, or give rise to a right to terminate, amend, modify, abandon or accelerate any material Contractual Obligation of and by Supplier, (iii) require any action by (including any authorization, consent or approval), or in respect of (including notice to), any entity under any material Contractual Obligation of Supplier, or (iv) result in a breach or violation of, or default under, Supplier's articles of incorporation or code of regulations.

 

	
  

	
7.2.

	
The Supplier has the needed knowledge, expertise, experience, ability, resources, managerial skills, employees, facilities administrative infrastructure and all other requirement needed to perform the agreed services as described in article 2 and in schedule A.       

 

	
  

	
7.3.

	
The Supplier warrants that it has understood, checked and accepted to perform the services as described in article 2 and in schedule A.

 

	
8.

	
General Provisions

 

	
  

	
8.1.

	
This Agreement, including all Appendixes which are incorporated by reference, states the entire agreement between the parties with respect to the subject matter of this Agreement and shall terminate and supersede all previous discussions, proposals, negotiations, representations, commitments, writings, agreements and other communications, both oral and written, between the parties. This Agreement may not be modified or amended except by a written document signed by an authorized by a duly authorized representative of each of the parties.

 

	
  

	
8.2.

	
The validity, construction and performance of this Agreement shall be governed by and interpreted in accordance with the laws of the State of Israel, without giving effect to the principles of conflict of laws thereof. The competent courts of the city of Tel Aviv-Jaffa, Israel shall have exclusive jurisdiction to settle all disputes arising in connection with this Agreement and no other courts shall have any jurisdiction whatsoever in respect of such disputes.

 

 

  

  

  

 

	
  

	
8.3.

	
Indemnity. The Supplier undertakes to indemnify and hold harmless, and agree to defend WGM against any third-party claim or action brought against WGM or any of their parent, subsidiary or affiliated companies, its or their directors, officers, employees, licensees, agents, attorneys, assigns or independent contractors, from and against any and all claims, actions, losses, liabilities, damages, costs and expenses (including legal fees and costs) arising out of or in connection with the Services or any breach of representation, covenant or agreement made by the Supplier.

 

	
  

	
8.4.

	
All of the terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the respective successors and permitted assigns of the parties.

 

	
  

	
8.5.

	
The Supplier may not assign its rights, privileges, obligations and undertakings under this agreement, to any third Party without the prior written consent of WGM.

 

	
  

	
8.6.

	
In addition to the rights and obligations which survive as expressly provided for elsewhere in this Agreement, the Articles and Sections which by their nature would be reasonably expected to survive, shall survive and continue after any termination of this Agreement, and specifically Articles 6 (Proprietary Rights and Confidential Information), 8.2 (Law and Venue), 8.5 (Survival) and 8.8 (Notices) shall survive and be enforceable after such termination.

 

	
  

	
8.7.

	
Any failure or delay by either party in exercising any right or remedy will not constitute a waiver of its right.

 

	
  

	
8.8.

	
In the event any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

 

	
  

	
8.9.

	
Any notice from one party to the other shall be effectively served if sent in writing by recorded delivery to the address of the receiving party as stated in the preamble to this Agreement, unless said Party informs the other Party in writing on a change of address.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first hereinabove written.

 

	
_____________________          

  

WGM SERVICES LTD.: 

    

By: /s/ Shimon Citron     

 

Authorized Signatory                                                              

	

______________________

 

SUPPLIER:

 

By: /s/ Ronen Erez 

 

Chief Executive Officer

 

By: /s/ Oleg Golynker 

 

Authorized Signatory

 

  

  

  

SCHEDULE A 

 

The Supplier will perform services in the capacity of a CTO (Chief Technology Officer). Services to be performed by the Supplier:

 

	
  

	
1.

	
The Supplier shall be responsible to provide development and management services for the technology department

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