Document:

Exhibit 4.3

 

THIS WARRANT AND THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISPOSITION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

WARRANT TO PURCHASE SHARES

 

of

 

SOLAREDGE TECHNOLOGIES, INC.

 

Issue Date: December 28, 2012

 

This certifies that, for value received, KREOS CAPITAL IV (EXPERT FUND) LIMITED. or its permitted assigns (“Holder”) is entitled, subject to the terms set forth herein, to purchase from SOLAREDGE TECHNOLOGIES, INC., a Delaware corporation (the “Company”), the number of Warrant Shares (as defined below) specified herein, upon: (a) surrender of this Warrant; (b) delivery of either (i) Notice of Exercise or (ii) Notice of Cashless Exercise, as applicable, each, substantially in the form annexed hereto, duly completed and executed on behalf of the Holder; and (c) either (i) simultaneous payment therefor of the Exercise Price as set forth in Section 3 below in the event of exercise under Section 6.1.1, or (ii) a calculation of the number of Warrant Shares to be issued in the event of a cashless exercise provided for in Section 6.1.2. The number and Exercise Price of Warrant Shares are subject to adjustment as provided below

 

This Warrant is issued in connection with that certain Agreement for the Provision of a Loan Facility of up to US$10,000,000, dated as of December 28, 2012 (the “Loan Agreement”).

 

1.              Term of Warrant.

 

Subject to the terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part, at any time during the term commencing on the date hereof and ending at the earliest of: (i) 16:00 Israel time on December 28, 2022 (the tenth anniversary of the date hereof); or (ii) twelve (12) months after an initial public offering of the Company’s Common Stock (the “Common Stock”) in connection with which all the outstanding shares of Preferred Stock of the Company (the “Preferred Shares”) are converted into shares of Common Stock pursuant to the Company’s Certificate of Incorporation, as may be amended from time to time (the “COI”) (an “IPO”); or (iii) immediately prior to the consummation of a merger, consolidation, or reorganization of the Company with or into, or the sale of all or substantially all the assets or shares of the Company to, any other entity or person, other than a wholly-owned subsidiary of the Company, excluding any transaction in which stockholders of the Company prior to the transaction will hold more than fifty percent (50%) of the voting and economic rights of the surviving entity after the transaction (an “M&A Transaction” and together with an IPO, an “Exit Event”) (the “Term”), and shall be void thereafter; provided, that, the

 

 

Company shall notify the Holder in writing at least 7 days prior to the end of the Term under clauses (i) and (ii) above. If the Company fails to provide the aforementioned notice of expiration, then the Term shall be extended until 14 days after actual notice is provided.

 

2.              Warrant Shares.

 

The shares issuable to the Holder upon exercise of this Warrant (or any part thereof) (the “Warrant Shares”) shall be shares of Series D-1 Preferred Shares of the Company.

 

3.              Exercise Price.

 

The exercise price per Warrant Share (the “Exercise Price”) at which this Warrant may be exercised shall be US$ 2.309, being the Original Series D Issue Price (as defined in the Company’s COI as in effect on the date hereof) of the Series D- 1 Preferred Shares, subject to adjustment from time to time pursuant to Section 12 hereof.  It is agreed that the Warrant Shares issuable upon exercise of this Warrant shall upon their issuance bear identical financial rights (with respect, for example, to liquidation preference, dividend preference and anti-dilution protection) as the other shares of the same class of shares of the Warrant Shares under the COI.[Not relevant]

 

4.              Number of Warrant Shares Available for Purchase.

 

The Company hereby grants to the Holder a warrant to purchase 563,014 Warrant Shares.

 

5.              Minimum Proceeds.

 

In the event that (i) the Holder exercises the Warrant Shares in full upon or (if applicable) after an Exit Event; and (ii) the aggregate Fair Market Value (as defined in section 6.1.2 below) of the Warrant Shares so exercised less the exercise price paid thereof (the “Value”) is lower than US$ 750,000 (the “Minimum Value”), then the Company shall pay the Holder, in addition to any other amounts due to the Holder under the Loan Agreement, an amount equal to the difference between the Minimum Value and the Value.

 

6.              Exercise of Warrant

 

6.1. Manner of Exercise.

 

This Warrant is exercisable by the Holder, in whole or in part, on one or more occasions, at any time and from time to time, during the Term, by the surrender of this Warrant and the applicable Notice of Exercise annexed hereto, duly completed and executed on behalf of the Holder, at the principal office of the Company.

 

6.1.1.         Exercise for Cash. To exercise for cash, the Holder shall deliver to the Company, concurrently with the surrender of this Warrant, a check or a wire transfer in immediately available funds for the aggregate Exercise Price for the

 

 

Warrant Shares being purchased. Payment of the Exercise Price may be made in Dollars.

 

6.1.2.         Cashless Exercise. In lieu of the payment method set forth in Section 6.1.1 above, this Warrant may be exercised by the Holder, in whole or in part, by the surrender of this Warrant and the Notice of Cashless Exercise annexed hereto, duly completed and executed and indicating the number of Warrant Shares with respect to which the Warrant is being exercised, at the principal office of the Company (a “Cashless Exercise”). In the event of a Cashless Exercise, the Holder shall exchange the Warrant, or any portion thereof (without payment by the Holder of any cash or other consideration) for that number of Warrant Shares calculated as follows: (a)(i) the number of Warrant Shares with respect to which the Warrant is being exercised (adjusted to the date of calculation, but excluding those Warrant Shares already issued under this Warrant), multiplied by (ii) an amount equal to the Fair Market Value per Warrant Share at the time of such Cashless Exercise minus the Exercise Price (as adjusted to the date of such calculation); divided by (b) the Fair Market Value per Warrant Share. For the purposes of this Warrant, the “Fair Market Value” means: (i) in the event of an exercise of this Warrant contingent upon the closing of an IPO, the initial “Price to Public” of one Warrant Share or the Shares of Common Stock issuable upon conversion of such Warrant Share at the closing of such; (ii) in the event of an exercise of this Warrant contingent upon the closing or consummation (as the case may be) of an M&A Transaction, the price per Warrant Share (assuming conversion of the Warrant Shares, adjusted to the date of such calculation, but excluding those shares already issued under the Warrant) as determined in such transaction. If the price per Warrant Share in an M&A Transaction is not determined, then as determined by mutual agreement of the Company and the Holder of this Warrant. If the Holder and the Company cannot mutually agree on the fair market value, such value shall be determined by a reputable independent appraiser selected by the Holder with the consent of the Company (which consent shall not be unreasonably withheld), and whose fees and expenses shall be borne by the Company.

 

6.2.  Conditional Exercise.

 

In connection with an IPO or an M&A Transaction, as applicable, the exercise of this Warrant may be made conditional upon the closing of such transaction. The Company shall notify the Holder in writing at least 7 days prior to the closing of such transaction and include in such notice the terms of such transaction, and provide the Holder with any material updates and changes to the terms thereof promptly in writing.

 

6.3.  Result of Exercise.

 

This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, or, if exercised pursuant to Section 6.2 above, immediately prior to the closing (or consummation, as the case may be) of the IPO or M&A Transaction, as applicable, and the person entitled to receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as the holder of record of such shares as of the close of business on such date, or the closing date of such event, as applicable. As promptly as practicable on or after such date and in any event within five (5) days thereafter, at the Holder’s

 

 

request, the Company at its expense shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number of shares issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and deliver a new Warrant of like tenor exercisable for the remaining number of Warrant Shares for which this Warrant may then be exercised.

 

7.              No Fractional Shares.

 

No fractional shares shall be issued upon the exercise of this Warrant, but in lieu of such fractional shares the Company shall round down to the nearest whole number the number of shares to be issued and in lieu of such fractional shall make a cash payment therefor upon the basis of the Exercise Price then in effect.

 

8.              Replacement of Warrant.

 

On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant and, in the case of loss, theft, or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount.

 

9.              Rights of Stockholders.

 

Subject to Section 12 of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of Preferred Shares or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, until this Warrant or any portion hereof shall have been exercised and the Warrant Shares shall have been issued, as provided herein. Nothing in the foregoing to the contrary, upon exercise of this Warrant, or any portion thereof, the Holder shall be entitled to all rights of a holder of the class of shares constituting the Warrant Shares under the COI, and in addition all rights on the same terms and conditions afforded, by contract or otherwise, to the investors and/or purchasers of such shares in connection with the applicable financing round in which such shares were purchased, as applicable and as of the exercise of the Warrant. The Holder shall join any investors’/stockholders’ rights agreement, stockholders agreement and any other agreement between the Company and the stockholders of the Company, then in effect, and to be deemed a holder thereunder of the class of shares constituting the Warrant Shares, and be afforded the same rights and obligations attached to the shares thereunder. Without derogating from the above, the parties hereby agree that upon exercise of this Warrant, the Warrant Shares purchased by the Holder in any such exercise shall be deemed “Registrable Securities”, and shall have piggyback registration rights and S-3 registration rights provisions pari passu with the holders of Preferred Shares.

 

10.       Reservation of Shares.

 

The Company covenants that during the Term this Warrant is exercisable, the Company will reserve from its authorized and unissued share capital a sufficient number of shares to provide for the issuance of Warrant Shares upon the exercise of this Warrant

 

 

and the shares of Common Stock issuable upon conversion of the Warrant Shares (the “Conversion Shares”). The Company further covenants that all Warrant Shares and Conversion Shares will be duly authorized, validly issued, fully paid and non-assessable, and will be free from all taxes, liens, and charges in respect of the issue thereof. The Company agrees that its issuance of this Warrant shall constitute full authority to its officers to register the Holder as the owner of Warrant Shares and Conversion Shares, and to execute and issue the necessary certificates for Warrant Shares and Conversion Shares, upon the exercise of this Warrant and the conversion of the Warrant Shares, respectively.

 

11.       Amendments and Waivers.

 

Any term of this Warrant may be amended and the observance of any term of this Warrant may be waived (either generally or in a particular instance and either retroactively or prospectively) with the written consent of the Company and the Holder. No waivers of, or exceptions to any term, condition or provision of this Warrant, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition or provision.

 

12.       Adjustments.

 

The Exercise Price and the number and kind of Warrant Shares purchasable hereunder are subject to adjustment from time to time as follows:

 

12.1.                     Reclassification, etc.

 

If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall, by reorganization or reclassification of securities or otherwise, change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes (including, without limitation, in case of conversion of all shares of the class as to which purchase rights under this Warrant exist into shares of Common Stock), this Warrant shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as the result of such change with respect to the securities which were subject to the purchase rights under this Warrant immediately prior to such reorganization or reclassification or other change and the Exercise Price then in effect shall, concurrently with the effectiveness of such reorganization or reclassification, be proportionately adjusted such that this Warrant shall be exercisable into, in lieu of the number of Warrant Shares which the Holder would otherwise have been entitled to receive, a number of shares of such other class or classes of shares that would have been subject to receipt by the Holder had the Holder exercised the Warrant immediately before that change. If however (i) the Preferred Share into which this Warrant is exercisable shall at any time be converted into the same or a different number of securities of any other class or classes of securities that are inferior in rights than the Preferred Share (a “Conversion”); or (ii) the rights of the Preferred Share into which this Warrant is exercisable are adversely changed (an “Adverse Change”), then, without the prior written approval of the Holder, such conversion or change shall not be deemed a reorganization or reclassification of securities for the purposes of this Section 12.1, and this Warrant and the Warrant Shares shall remain unchanged and not be subject to the Conversion or the Adverse Change, as applicable, unless: (A) such conversion or change applies

 

 

equally and unconditionally to all the holders of such Preferred Share and securities that are convertible into such Preferred Share; or (B) such conversion or change is subject to and conditional upon the consummation of a Liquidation Event or IPO.

 

12.2.                     Split, Subdivision or Combination of Shares.

 

If the Company at any time while this Warrant, or any portion hereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist (including, with respect to a split or subdivision, by way of the issuance of a share dividend or bonus shares), into a different number of securities of the same class, the Exercise Price for such securities shall be proportionately decreased and the number of securities issuable upon exercise proportionately increased in the case of a split or subdivision or the Exercise Price of such securities shall be proportionately increased and the number of securities issuable upon exercise proportionately decreased in the case of a combination.

 

12.3.                     Adjustments for Share Dividends or Other Securities or Property.

 

If, while this Warrant, or any portion hereof, remains outstanding and unexpired, the holders of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to receive, without payment therefor, other or additional shares or other securities or property of the Company by way of dividend or otherwise, then and in each case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable upon the exercise of this Warrant, and without payment of any additional consideration thereof, the amount of such other or additional shares or other securities or property as aforesaid of the Company which such Holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other additional securities available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions of this Section 12.

 

12.4.                     Anti-Dilution Adjustment.

 

If, while this Warrant, or any portion hereof, remains outstanding and unexpired, the Company issues or sells any class or series of securities or any instrument convertible into securities of the Company at a price per share such that the class of Warrant Shares into which this Warrant is exercisable are entitled to an anti-dilution adjustment pursuant to the COI, or if the conversion price of the class of Warrant Shares into which this Warrant is exercisable is otherwise being reduced, then such reduction shall be deemed to apply automatically to the Warrant Shares purchasable by exercising this Warrant, such that upon such exercise, the conversion price of the Warrant Shares shall be that reduced conversion price determined for the class of shares constituting the Warrant Shares.

 

 

12.5.                     Other Events.

 

If, while this Warrant, or any portion hereof, remains outstanding and unexpired, any other event occurs as to which the provisions of this Section 12 do not strictly apply or if strictly applicable would not fairly protect the purchase rights of the Holder in accordance with the provisions hereof, then the board of directors of the Company shall make an adjustment in the number and class of shares available under the Warrant, the Exercise Price or the application of such provisions, so as to protect such purchase rights as aforesaid. The adjustment shall be such as will give the Holder upon exercise for the same aggregate Exercise Price the total number, class and kind of shares as such Holder would have owned had the Warrant been exercised prior to the event and had the Holder continued to hold such shares until after the event requiring adjustment.

 

12.6.                     Certificate as to Adjustments.

 

Upon the occurrence of each adjustment or readjustment pursuant to this Section 12, the Company shall, upon the written request of the Holder of this Warrant, furnish or cause to be furnished to such Holder a certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the number of shares and the amount, if any, of other property which at the time would be received upon the exercise of the Warrant.

 

12.7.                     No Impairment.

 

The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all of the provisions of this Section 12 and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holder of this Warrant against impairment.

 

13.       Governing Law.

 

This Warrant and the legal relations between the parties arising hereunder shall be governed by and interpreted in accordance with the laws of the State of Israel without regard to its conflict of law principles. Any dispute arising under or with respect to this Warrant shall be resolved in any court in Israel where such court finds jurisdiction over the parties. Each party irrevocably waives any objection it may have to the venue of any action, suit or proceeding brought in such courts or to the convenience of the forum and each party irrevocably waives the right to proceed in any other jurisdiction. Final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment, a certified or true copy of which shall be conclusive evidence thereof.

 

14.       Successors and Assigns; Transfer.

 

Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto. The Holder may freely assign, distribute or otherwise transfer this Warrant, with respect to all or any portion of the Warrant Shares hereunder together with the Loan Agreement to either a Permitted Transferee of the Holder (as

 

 

defined in the Company’s Investors Rights Agreement) or to a reputable financial institution, provided the Holder provides a notice thereof to the Company.

 

15.       Investment Representation.

 

Neither this Warrant nor the Warrant Shares issuable upon the exercise of this Warrant have been registered under the Securities Act, or any other securities laws. The Holder acknowledge by acceptance of the Warrant that (a) it has acquired this Warrant for investment and not with a view to distribution; (b) it has either a pre-existing personal or business relationship with the Company, or its executive officers, or by reason of its business or financial experience, it has the capacity to protect its own interests in connection with the transaction; and (c) it is an accredited investor as that term is defined in Regulation D promulgated under the Securities Act; (d) it is capable of evaluating the merits and risks of the purchase of this Warrant and the Warrant Shares issuable pursuant to the terms of this Warrant; and (e) it is able to bear the economic risk of the purchase of the Warrant Shares issuable on exercise of this Warrant. The Holder agrees that any Warrant Shares issuable upon exercise of this Warrant will be acquired for investment and not with a view to distribution and such Warrant Shares will not be registered under the Securities Act and applicable state securities laws and that such Warrant Shares may have to be held indefinitely unless they are subsequently registered or qualified under the Securities Act and applicable state securities laws, or based on an opinion of counsel reasonably satisfactory to the Company, an exemption from such registration and qualification is available.

 

16.       Representations and Warranties of the Company.

 

The Company represents and warrants to the Holder as follows as of the date hereof:

 

16.1.                     This Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance with its terms.

 

16.2.                     The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the terms hereof, will be validly issued, fully paid and non-assessable and not subject to any preemptive or participation rights.

 

16.3.                     The execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with the terms hereof will not be, inconsistent with the COI, do not and will not contravene any law, governmental rule or regulation, judgment or order applicable to the Company, and, except for consents that have already been obtained by the Company, do not and will not conflict with or contravene any provision of, or constitute a default under, any indenture, mortgage, contract or other instrument of which the Company is a party or by which it is bound or require the consent or approval of, the giving of notice to, the registration with or the taking of any action in respect of or by, any federal, state or local government authority or agency or other person.

 

16.4.                     All necessary consents of stockholders and other third parties with respect to the issuance of this Warrant and the Warrant Shares upon exercise thereof have been

 

 

obtained, and the Company has no outstanding issuance obligations, rights of first offer, pre-emptive or participation rights, anti-dilution rights or other similar rights with respect to the issuance of this Warrant and the Warrant Shares upon exercise thereof, or any such rights have been exercised, waived or cancelled.

 

16.5.                     Certain Information. The Company agrees to provide the Holder at any time and from time to time with such information as the Holder may reasonably request for purposes of the Holder’s compliance with regulatory, accounting and reporting requirements applicable to the Holder. In addition, for as long as this Warrant remains outstanding, the Company shall, at the Holder’s request, provide the Holder with (i) the Company’s quarterly consolidated financial statements, annual audited financial statements within one hundred and fifty (150) days of year-end, certified by an independent certified public accountant acceptable to the Holder, in the same form and together with holders of Preferred Shares of the Company; and (ii) annual operating budgets and projection within ten (10) days from board of directors’ approval, and as revised.

 

16.6.                     Expenses. The Company shall pay to the Holder, on the Holder’s demand, all expenses incurred by the Holder in connection with any amendment, supplement to, or waiver and/or consent in connection with, this Warrant, or any proposal for such an amendment to be made, initiated or requested by the Company.

 

17.       Survival.

 

The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Warrant.

 

18.       Notices.

 

All notices and other communications required or permitted hereunder shall be in writing and shall be deemed effectively given upon delivery to the party to be notified in person, by facsimile (upon confirmation of successful transmission) or by courier service or four days after deposit by registered or certified mail, postage prepaid, addressed as follows:

 

	
If to the Company:
    	
 
    	
SolarEdge Technologies Ltd.
    
	
 
    	
 
    	
6 HeHarash St., P.O.Box 7349, Neve Neeman, Hod Hasharon   45240, Israel
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Fax: +972 9 957-6591
    
	
 
    	
 
    	
For the attention of: General Counsel
    
	
 
    	
 
    	
 
    
	
If to the Holder:
    	
 
    	
Kreos Capital IV (Expert Fund) Limited.
    
	
 
    	
 
    	
47 Esplanade, St Helier, Jersey
    
	
 
    	
 
    	
Fax: +44 1534 889 884
    
	
 
    	
 
    	
Attn: The Directors
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with a copy to:
    
	
 
    	
 
    	
Kadouch & Co., Law Offices
    
	
 
    	
 
    	
8 Abba Eban Blvd.
    

 

 

	
 
    	
 
    	
Herzliya 46733, Israel
    
	
 
    	
 
    	
Fax: +972-9-9525450
    
	
 
    	
 
    	
Attn: Emmanuel Kadouch, Adv.
    

 

19.       Delays or Omissions.

 

Except as expressly provided herein, no delay or omission to exercise any right, power or remedy accruing to any Holder, upon any breach or default of the Company under this Warrant, shall impair any such right, power or remedy of such Holder nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Holder of any breach or default under this Warrant, or any waiver on the part of any Holder of any provisions or conditions of this Warrant, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Warrant or by law or otherwise afforded to any holder, shall be cumulative and not alternative.

 

20.       Severability.

 

In the event that any provision of this Warrant becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Warrant shall continue in full force and effect without said provision, and such provision shall be given effect to the extent legally possible.

 

21.       Titles and Subtitles.

 

The titles and subtitles used in this Warrant are used for convenience only and are not considered in construing or interpreting this Warrant.

 

 

IN WITNESS HEREOF, the parties have executed this Warrant as of December 28, 2012.

 

	
SOLAREDGE TECHNOLOGIES, INC.
    	
 
    	
KREOS CAPITAL IV (EXPERT FUND) LIMITED
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Guy Sella
    	
 
    	
By:
    	
/s/ Illegible
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Guy Sella
    	
 
    	
Name:
    	
 
    
	
Title:
    	
President
    	
 
    	
Title:
    	
 
    

 

 

NOTICE OF EXERCISE

 

To: SOLAREDGE TECHNOLOGIES, INC.

 

NOTICE OF EXERCISE

 

1.                                 The undersigned hereby irrevocably elects to purchase              Series D-1 Preferred Shares of SOLAREDGE TECHNOLOGIES, INC. pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price of such shares in full.

 

2.                                 Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other name as is specified below:

 

	
 
    	
 
    
	
(Name)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Address)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Date)
    	
 
    

 

 

CASHLESS EXERCISE FORM

 

To: SOLAREDGE TECHNOLOGIES, INC.

 

NOTICE OF CASHLESS EXERCISE

 

1.              The undersigned hereby elects to exercise its Cashless Exercise rights, pursuant to Section 6.1.2 of the attached Warrant, with respect to           Series D-1 Preferred Shares of SOLAREDGE TECHNOLOGIES, INC., pursuant to the terms of the Warrant.

 

2.              Please issue a certificate or certificates representing the number of shares issuable after deducting the shares withheld in lieu of payment of the exercise price, in the name of the undersigned or in such other name as is specified below:

 

	
 
    	
 
    
	
(Name)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Address)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Signature)
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
(Date)Exhibit 10.8

 

SOLAREDGE TECHNOLOGIES, INC.

 

THE 2007 GLOBAL INCENTIVE PLAN

 

 

This plan, as amended from time to time, shall be known as the SolarEdge Technologies, Inc. 2007 Global Incentive Plan (the “Plan”).

 

1.                                      PURPOSE OF THE PLAN

 

The Plan is intended to provide an incentive to retain, in the employ of the Company (as defined below) and its affiliates, persons of training, experience and ability; to attract new employees, directors, consultants and service providers; to encourage the sense of proprietorship of such persons; and to stimulate the active interest of such persons in the development and financial success of the Company by providing them with opportunities to purchase stock in the Company.

 

2.                                      DEFINITIONS

 

For purposes of interpreting the Plan and related documents (including the Award Agreement and its appendixes), the following definitions shall apply:

 

2.1                               “Award” means an Option to purchase common Stock of the Company or Restricted Stock granted to any Participant under the Plan.

 

2.2                               “Award Agreement” means the stock award agreement between the Company and a Participant that evidences and sets out the terms and conditions of an Award.

 

2.3                               “Board” means the Board of Directors of the Company.

 

2.4                               “Cause” means (i) conviction of any felony involving moral turpitude or affecting the Company or its affiliates; (ii) embezzlement of funds of the Company or its affiliates; (iii) any breach of the Participant’s fiduciary duties or duties of care of the Company or its affiliates; including without limitation disclosure of confidential information of the Company or its affiliates; and (iv) any intentional misconduct (other than conduct in good faith) reasonably determined by the Board to be materially detrimental to the Company or its affiliates.

 

2.5                               “Chairman” means the Chairman of the Committee.

 

2.6                               “Committee” means a stock compensation committee of the Board, designated from time to time by the resolution of the Board, which shall consist of no fewer than two members of the Board.

 

2.7                               “Company” means SolarEdge Technologies, Inc., a Delaware corporation.

 

2.8                               “Date of Grant” means the date determined by the Board or authorized Committee as set forth in the Award Agreement.

 

2.9                               “Employee” means a person who is employed by the Company or any affiliate.

 

 

2.10                        “Expiration Date” means the date upon which an Award shall expire, as set forth in Section 8.2 of the Plan.

 

2.11                        “Fair Market Value” means as of any date, the value of a Stock determined as follows:

 

(i)                                     If the Stock are listed on any established stock exchange or a national market system, including without limitation the Tel-Aviv Stock Exchange, the NASDAQ Global Select Market, NASDAQ Global Market or the NASDAQ Capital Market, the Fair Market Value shall be the last reported sale price for such Stock (or the highest closing bid, if no sales were reported), as quoted on such exchange or system for the last market trading day prior to time of determination, as reported in The Wall Street Journal, or such other source as the Board deems reliable;

 

(ii)                                  If the Stock are regularly quoted by one or more recognized securities dealers, but selling prices are not reported, the Fair Market Value shall be the mean between the highest bid and lowest asked prices for the Stocks on the last market trading day prior to the day of determination; or

 

(iii)                               In the absence of an established market for the Stock, the Fair Market Value thereof shall be determined in good faith by the Board.

 

2.12                        “IPO” means the closing of the sale of the Company’s Common Stock in a firm- commitment, underwritten public offering registered under the Securities Act of 1933, as amended, other than a registration relating solely to a transaction under Rule 145 under such Act (or any successor thereto) or to an employee benefit plan of the Company, which results in aggregate proceeds to the Company (before payment of any underwriters’ discounts and expenses relating to the issuance) of at least $10,000,000..

 

2.13                        “Option” means an option to purchase common stock pursuant to the Plan.

 

2.14                        “Participant” means a person who receives or holds an Award under the Plan.

 

2.15                        “Plan” means the Company’s 2007 Global Incentive Plan.

 

2.16                        “Purchase Price” means the price for each Stock subject to an Award.

 

2.17                        “Restricted Stock” means a Stock granted under the Plan subject to Vesting Dates as determined by the Board or the Committee.

 

2.18                        “Service Provider” means a director, consultant or adviser of the Company or any affiliate, or any other person who is not an Employee.

 

2.19                        “Stock” means the common stock, $ 0.0001 par value, of the Company.

 

 

2.20                        “Successor Company” means the surviving entity after a Transaction.

 

2.21                        “Transaction” means (i) the consummation of a merger, acquisition or reorganization of the Company with one or more other entities after which the beneficial owners of the Company’s outstanding voting securities immediately prior to such Transaction do not own at least 50% of the outstanding voting securities of the Successor Company that results from such Transaction, or (ii) a sale of all or substantially all of the assets or stock of the Company to another entity.

 

2.22                        “Vested Award” means any Award, which has already been vested according to the Vesting Dates.

 

2.23                        “Vesting Dates” means, as determined by the Board or authorized Committee, the date as of which the Participant shall be entitled to exercise Awards or part of the Awards as set forth in Section 10 of the Plan.

 

2.24                        “Vested Options” means any Option, which has already been vested according to the Vesting Dates.

 

3.                                      ADMINISTRATION OF THE PLAN

 

3.1                               The Board shall have the power to administer the Plan. To the extent permitted under applicable law, the Board may delegate its powers under the Plan, or any part thereof, to the Committee, in which case, any reference to the Board in the Plan with respect to the rights so delegated shall be construed as reference to the Committee. Notwithstanding the foregoing, the Board shall automatically have residual authority (i) if no Committee shall be constituted, (ii) with respect to rights not delegated by the Board to the Committee, or (iii) if such Committee shall cease to operate for any reason whatsoever.

 

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 the Chairman shall determine. The Committee shall keep records of its meetings and shall make such rules and regulations for the conduct of its business as it shall deem advisable.

 

 

3.3                               The Committee shall have full power and authority subject to the approval of the Board to the extent required under applicable law (and subject further to applicable laws): (i) to designate Participants; (ii) to determine the terms and provisions of respective Award Agreements (which need not be identical) including, but not limited to, the number of Stock to be covered by each Award, provisions concerning the time or times when and the extent to which the Awards may be exercised and the nature and duration of restrictions as to transferability or restrictions constituting substantial risk of forfeiture; (iii) to accelerate the right of a Participant to exercise, in whole or in part, any previously granted Award; (iv) to interpret the provisions and supervise the administration of the Plan; (v) to determine the Fair Market Value of the Stock; (vi) to designate the type of Awards to be granted to an Participant; (vii) to determine any other matter which is necessary or desirable for, or incidental to, the administration of the Plan.

 

3.4                               The Board and/or the Committee shall have the authority to grant, at its discretion, to the holder of an outstanding Award, in exchange for the surrender and cancellation of such Award, a new Award having a purchase price equal to, lower than or higher than the Purchase Price of the original Award so surrendered and canceled, and containing such other terms and conditions as the Committee may prescribe in accordance with the provisions of the Plan.

 

3.5                               Subject to the Company’s incorporation documents, all decisions and selections made by the Board or the Committee pursuant to the provisions of the Plan shall be made by a majority of its members except that no member of the Board or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed action of the Board or the Committee relating to any Award to be granted to that member. Any decision reduced to writing shall be executed in accordance with the provisions of the Company’s incorporation documents, as the same may be in effect from time to time.

 

3.6                               The interpretation and construction by the Committee of any provision of the Plan or of any Award Agreement thereunder shall be final and conclusive unless otherwise determined by the Board.

 

3.7                               Subject to the Company’s incorporation documents and 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 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 fraud or bad faith, to the 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 incorporation documents, any agreement, any vote of stockholders or disinterested directors, insurance policy or otherwise.

 

4.                                      DESIGNATION OF PARTICIPANTS

 

The persons eligible for participation in the Plan shall include Employees and/or Service

 

 

Providers. The grant of an Award hereunder shall neither entitle the Participant to participate nor disqualify him or her from participating in, any other grant of Awards pursuant to the Plan or any other award or stock plan of the Company or any of its affiliates.

 

5.                                      STOCK RESERVED FOR THE PLAN

 

5.1                               The Company has reserved Twelve Million Five Hundred Thousand (12,500,000) shares of authorized but unissued Stock for the purposes of the Plan and for the purpose of the Company’s other incentive plans when applicable, subject to adjustment as set forth in Section 7 below. Any Stock which remain unissued and which are not subject to outstanding Awards at the termination of the Plan shall cease to be reserved for the purpose of the Plan, but until termination of the Plan the Company shall at all times reserve a sufficient number of Stock to meet the requirements of the Plan. Should any Award for any reason expire or be canceled prior to its exercise or relinquishment in full, the Stock or Stock subject to such Award may again be subjected to an Award under the Plan or under future plans.

 

5.2                               Each Award granted pursuant to the Plan, shall be evidenced by a written Award Agreement between the Company and the Participant, in such form as the Board shall from time to time approve. Each Award Agreement shall state, inter alia, the number of Stock to which the Award relates, the type of Award granted thereunder, the Vesting Dates, the Purchase Price per Stock and the Expiration Date.

 

5.3                               Until the consummation of an IPO, such Stock shall be voted by an irrevocable proxy (the “Proxy”), such Proxy to be assigned to the person or persons designated by the Board (the “Representative(s)”). Such Representative designated by the Board 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 such Proxy unless arising out of such Representative’s own fraud or bad faith, to the extent permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the Representative(s) may have as a director or otherwise under the Company’s incorporation documents, any agreement, any vote of stockholders or disinterested directors, insurance policy or otherwise.

 

6.                                      PURCHASE PRICE

 

6.1                               The Purchase Price of each Stock subject to an Award shall be determined by the Committee in its sole and absolute discretion in accordance with applicable law, subject to any guidelines as may be determined by the Board from time to time. Each Award Agreement will contain the Purchase Price determined for each Participant.

 

6.2                               The Purchase Price shall be payable upon the exercise of an Award in the following acceptable forms of payment:

 

 

(i)                                     cash, check or wire transfer.

 

(ii)                                  at the discretion of the Committee, through delivery of Stock (including other Stock subject to the Awards being exercised) having a Fair Market Value equal as of the date of exercise to the Purchase Price of the Stock purchased and acquired upon the exercise of the Award, or by a different form of cashless exercise method through a third party broker as approved by the Committee.

 

(iii)                               at the discretion of the Committee, any combination of the methods of payment permitted by any paragraph of this Section 6.2.

 

6.3                               The Purchase Price shall be denominated in the currency of the primary economic environment of, at the Company’s discretion, either the Company or the Employee (that is the functional currency of the Company or the currency in which the Employee is paid).

 

7.                                      ADJUSTMENTS

 

Upon the occurrence of any of the following described events, Participant’s rights to purchase Stock under the Plan shall be adjusted as hereafter provided:

 

7.1                               In the event of a Transaction, the unexercised Awards then outstanding under the Plan shall be assumed or substituted for (in accordance with Section 7.3). In the case of such assumption and/or substitution of Awards, appropriate adjustments shall be made to the Purchase Price so as to reflect such action and all other terms and conditions of the Award Agreements shall remain unchanged, including but not limited to the vesting schedule, all subject to the determination of the Committee or the Board, which determination shall be in their sole discretion and final. The Company shall notify the Participant of the Transaction in such form and method as it deems applicable at least ten (10) days prior to the effective date of such Transaction.

 

7.2                               Notwithstanding the above and subject to all applicable law, the Board or the Committee shall have the power and authority to determine that in certain Award Agreements there shall be a clause instructing that if in any Transaction the Successor Company (or parent or subsidiary of the Successor Company) does not agree to assume or substitute the Awards, the Vesting Dates of outstanding Awards shall be accelerated so that any unvested Award or any portion thereof shall be immediately vested as of the date which is ten (10) days prior to the effective date of the Transaction.

 

7.3                               For the purposes of Section 7.1 above, an Award shall be considered assumed or substituted if, following the Transaction, the Award shall confer the right, subject to such Award’s original vesting schedule, to purchase or receive, for each Stock underlying such Award immediately prior to the Transaction, the consideration (whether stock, awards, cash, or other securities or property) received in the Transaction by the holders of stock for each Stock held on the effective date of the Transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a

 

 

majority of the outstanding Stock); provided, however, that if such consideration received in the Transaction is not solely shares of common stock (or their equivalent) of the Successor Company or its parent or subsidiary, the Committee may, with the consent of the Successor Company, provide for the consideration to be received upon the exercise of the Award to be solely shares of common stock (or their equivalent) of the Successor Company or its parent or subsidiary equal in Fair Market Value to the per Stock consideration received by holders of a majority of the outstanding stock in the Transaction; and provided further that the Committee may determine, in its discretion, that in lieu of such assumption or substitution of Awards for awards of the Successor Company or its parent or subsidiary, such Awards will be substituted for any other type of asset or property including cash which is fair under the circumstances. Without limiting the generality of the foregoing, the Committee may, in its discretion, provide that such Awards will be settled in exchange for a cash payment based upon the distribution or consideration payable to holders of the Stock upon or in respect of such Transaction (for example, in the case of Options, the Committee may base such settlement solely upon the excess (if any) of the amount payable upon or in respect of such Transaction over the exercise price of the Option to the extent of the then vested and exercisable shares subject to the Option).

 

7.4                               If the Company is voluntarily liquidated or dissolved while unexercised Awards remain outstanding under the Plan, the Company shall immediately notify all unexercised Award holders of such liquidation, and the Award holders shall then have ten (10) days to exercise any unexercised Vested Award held by them at that time, in accordance with the exercise procedure set forth herein. Upon the expiration of such ten-days period, all remaining outstanding Awards will terminate immediately.

 

7.5                               If the outstanding Stock shall at any time be changed or exchanged by declaration of a stock dividend (bonus stock), Stock split or reverse Stock split, combination or exchange of stock, recapitalization, or any other like event by or of the Company, and as often as the same shall occur, then the number, class and kind of the Stock subject to the Plan or subject to any Awards theretofore granted, and the Purchase Prices, shall be appropriately and equitably adjusted so as to maintain the proportionate number of Stock without changing the aggregate Purchase Price; provided, however, that no adjustment shall be made by reason of the distribution of subscription rights (rights offering) on outstanding Stock. Upon happening of any of the foregoing, the class and aggregate number of Stock issuable pursuant to the Plan (as set forth in Section 5 hereof), in respect of which Awards have not yet been exercised, shall be appropriately adjusted.

 

7.6                               Anything herein to the contrary notwithstanding, if prior to the completion of the IPO, all or substantially all of the stock of the Company are to be sold or a merger or reorganization that constitutes a Transaction occurs, then each Participant shall be obliged to sell or exchange, as the case may be, any Stock such Participant purchased under the Plan, in accordance with the instructions issued by the Board in connection with the Transaction, whose determination shall be final.

 

 

7.7                               The Participant acknowledges that Participant’s rights to sell the Stock may be subject to certain limitations (including a lock-up period), as will be requested by the Company or its underwriters, and the Participant unconditionally agrees and accepts any such limitations.

 

8.                                      TERM AND EXERCISE OF OPTIONS

 

8.1                                      Options shall be exercised by the Participant’s by giving written notice of such exercise to the Company or to any third party designated by the Company (the “Designee”), in such form and method as may be determined by the Company, which exercise shall be effective upon receipt of such notice by the Company and/or the Designee and the payment of the exercise price for the number of Stock with respect to which the option is being exercised, at the Company’s or the Designee’s principal office. The notice shall specify the number of Stock with respect to which the Option is being exercised.

 

8.2                                         Options, to the extent not previously exercised, shall terminate upon the earlier of: (i) the date set forth in the Award Agreement; (ii) the expiration of ten (10) years from the Date of Grant; or (iii) the expiration of any extended period in any of the events set forth in Section 8.5 below.

 

8.3                                         The Options may be exercised by the Participant in whole at any time or in part from time to time, to the extent that the Options have become vested and exercisable, prior to the Expiration Date, and provided that, subject to the provisions of Section 8.5 below, the Participant is an Employee or a Service Provider at all times during the period beginning with the granting of the Option and ending upon the date of exercise.

 

8.4                                         Subject to the provisions of Section 8.5 below, in the event of a termination of Participant’s employment or service, all Awards granted to such Participant shall immediately expire. Unless otherwise approved by the Committee, a notice of termination of employment or services shall be deemed to constitute termination of employment or services.

 

8.5                                         Notwithstanding anything to the contrary hereinabove and unless otherwise determined in the Participant’s Award Agreement, an Option may be exercised after the date of termination of Participant’s employment or service during an additional period of time beyond the date of such termination, but only with respect to the number of Vested Options at the time of such termination according to the Vesting Dates, if:

 

8.5.1                     termination is by the Company other than for death, Disability or Cause, in which event the Vested Options still in force and unexpired may be exercised within a period of three (3) months after such date of termination; or

 

8.5.2                     termination is the result of death or Disability of the Participant, in which event the Vested Options still in force and unexpired may be exercised within a period of twelve (12) months after such date of termination; or

 

 

8.5.3                     prior to the date of such termination, the Committee shall authorize an extension of the term of all or part of the Vested Options beyond the date of such termination for a period not to exceed the period during which the Options by their terms would otherwise have been exercisable.

 

For avoidance of any doubt, if termination of employment or service is for Cause, any outstanding unexercised Option will immediately expire and terminate, and the Participant shall not have any right in respect of such outstanding Options. In addition, under no circumstances shall any such Option be exercisable after the specified expiration of the option term.

 

8.6                            To avoid doubt, the holder of an Option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised the Option, paid the exercise price and become the recordholder of the purchased shares.

 

8.7                            Any form of Award Agreement authorized by the Plan may contain such other provisions, not inconsistent with the Plan, as the Board may, from time to time, deem advisable.

 

9.                                      TERMS OF THE STOCK

 

9.1                               Subject to any applicable law, the Board or the Committee shall have the sole discretion to determine that in certain Award Agreements there shall be a clause instructing that in the event of termination of Participant’s employment with the Company or any of its affiliates the following may apply:

 

(i)                                     if termination is without Cause, all vested Stock held by the Participant on the date of termination may be retained by the Participant and may not be subject to forfeiture by the Company.

 

(ii)                                  unvested Stock held by the Participant on the date of termination, may be subject to forfeiture to the Company, at a price which is the lesser of the price paid by the Participant for the Stock (or the par value of the Stock, as the case may be) or the fair market value of the Company’s Stock at the date of such forfeiture (as determined by the Board or the Committee in its sole discretion), and the Participant shall not be entitled to retain the unvested Stock. Upon consummation of the forfeiture of the unvested Stock, the Participant’s rights with respect to such Stock including, inter alia, the right to receive dividends with respect to such unvested Sock shall lapse and shall be of no further force and effect.

 

(iii)                               notwithstanding anything to the contrary above, in the event of termination for Cause, all Stock, whether vested or not, may be subject to forfeiture to the Company at the lower price of the price paid by the Participant for the Stock (or the par value of the Stock, as the case may be) and the fair market value of the Company’s Stock at the date of such forfeiture (as determined by the Board or the Committee in its sole discretion) and all the Participant’s rights with respect to

 

 

such Stock including, inter alia, the right to receive dividends with respect to such Sock shall lapse and shall be of no further force and effect.

 

9.2                               Any form of Award Agreement authorized by the Plan may contain such other provisions as the Committee may, from time to time, deem advisable.

 

10.                               VESTING OF AWARDS

 

10.1                        Subject to the provisions of the Plan, Awards shall vest at the Vesting Dates set forth in the Award Agreement. However no Award shall be exercised after the Expiration Date.

 

10.2                        An Award may be subject to such other terms and conditions, not inconsistent with the Plan, on the time or times when it may be exercised as the Committee may deem appropriate. The vesting provisions of individual Awards may vary.

 

11.                               PURCHASE FOR INVESTMENT

 

The Company’s obligation to issue or allocate Stock upon exercise of an Award granted under the Plan is expressly conditioned upon: (a) the Company’s completion of any registration or other qualifications of such Stock under all applicable laws, rules and regulations or (b) representations and undertakings by the Participant (or his legal representative, heir or legatee, in the event of the Participant’s death) to assure that the sale of the Stock complies with any registration exemption requirements which the Company in its sole discretion shall deem necessary or advisable. Such required representations and undertakings may include representations and agreements that such Participant (or his legal representative, heir, or legatee): (a) is purchasing such Stock for investment and not with any present intention of selling or otherwise disposing thereof; and (b) agrees to have placed upon the face and reverse of any certificates evidencing such Stock a legend setting forth (i) any representations and undertakings which such Participant has given to the Company or a reference thereto and (ii) that, prior to effecting any sale or other disposition of any such Stock, the Participant must furnish to the Company an opinion of counsel, satisfactory to the Company, that such sale or disposition will not violate the applicable laws, rules and regulations of the United States or any other state having jurisdiction over the Company and the Participant.

 

12.                               STOCK SUBJECT TO RIGHT OF FIRST REFUSAL

 

12.1                        Notwithstanding anything to the contrary in the incorporation documents of the Company, none of the Participants shall have a right of first refusal in relation with any sale of stock in the Company.

 

12.2                        Unless otherwise determined by the Committee, until such time as the Company shall complete an IPO, a Participant shall not have the right to sell Stock issued upon the exercise of an Award within six (6) months and one day of the date of exercise of such

 

 

Award or issuance of such Stock.

 

Sale of Stock by the Participant shall be subject to a right of first refusal in favor of the Company as set forth in the incorporation documents of the Company or in another agreement between the Company and the Participant.

 

In the event that neither the incorporation documents of the Company nor any other agreement between the Company and the Participant contain any provision regarding rights of first refusal, then, unless otherwise determined by the Committee, until such time as the Company shall complete an IPO, the sale of Stock issuable upon the exercise of an Award shall be subject to a right of first refusal on the part of the Repurchaser(s) as set forth in Section 12.3.

 

Repurchaser(s) means (i) the Company, if permitted by applicable law, (ii) if the Company is not permitted by applicable law, then any affiliate of the Company designated by the Committee; or (iii) at the Committee’s option, then the Company’s existing stockholders (save, for avoidance of doubt, for other Participants who already exercised their Awards), pro rata in accordance with their stockholding.

 

12.3                        The Participant shall give a notice of sale (hereinafter the “Notice”) to the Company in order to offer the Stock to the Repurchaser(s). The Notice shall specify the name of each proposed purchaser or other transferee (hereinafter the “Proposed Transferee”), the number of Stock offered for sale, the price per Stock and the payment terms. The Repurchaser(s) will be entitled for thirty (30) days from the day of receipt of the Notice (hereinafter the “Notice Period”), to purchase all or part of the offered Stock on a pro rata basis based upon their respective holdings in the Company. If by the end of the Notice Period not all of the offered Stock have been purchased by the Repurchaser(s), the Participant shall be entitled to sell such Stock at any time during the ninety (90) days following the end of the Notice Period on terms not more favorable than those set out in the Notice, provided that the Proposed Transferee agrees in writing that the provisions of this Section shall continue to apply to the Stock in the hands of such Proposed Transferee.

 

12.4                        Any sale of Stock issued under the Plan by the Participant that is not made in accordance with the Plan or the Award Agreement shall be null and void.

 

13.                               DIVIDENDS

 

With respect to all Stock (but excluding, for avoidance of any doubt, any unexercised Awards) allocated or issued upon the exercise of Awards purchased by the Participant and held by the Participant or by a trustee, as the case may be, the Participant shall be entitled to receive dividends in accordance with the quantity of such Stock, subject to the provisions of the Company’s incorporation documents, as amended from time to time and subject to any applicable taxation on distribution of dividends.

 

 

14.                               RESTRICTIONS ON ASSIGNABILITY AND SALE OF AWARDS

 

No Award or any right with respect thereto, purchasable hereunder, whether fully paid or not, shall be assignable, transferable, or given as collateral nor any right with respect thereto may be given to any third party whatsoever, other than by will or by the laws of descent and distribution or as specifically otherwise allowed under the Plan and during the lifetime of the Participant, each and all of such Participant’s rights to purchase Stock hereunder shall be exercisable only by the Participant. Any action made in contradiction to the aforementioned, shall be null and void.

 

15.                               EFFECTIVE DATE, DURATION, AMENDMENTS OR TERMINATION OF THE PLAN

 

15.1                        The Plan shall be effective as of the day it was adopted by the Board and shall terminate at the end of ten (10) years from such day of a adoption (the: “Termination Date”).

 

15.2                        The Company shall obtain the approval of the Company’s stockholders for the adoption of this Plan and/or the Appendixes thereto or for any amendment to this Plan and/or the Appendixes thereto if stockholders’ approval is required under any applicable law including without limitation the U.S. securities law or the securities laws of other jurisdiction applicable to Awards granted to Participants under this Plan and/or the Appendixes thereto, or if stockholders’ approval is required by any authority or by any governmental agencies or national securities exchanges including without limitation the U.S. Securities and Exchange Commission.

 

15.3                        The Board may at any time, subject to the provisions of Section 15.2 above and all applicable law, amend, alter, suspend or terminate the Plan, provided, however, that (i) the Board may not extend the term of the Plan specified in Section 15.1 above and (ii) no amendment, alteration, suspension or termination of the Plan shall impair the rights of any Participant, unless mutually agreed otherwise by the Participant and the Company, which agreement must be in writing and signed by the Participant and the Company. Earlier termination of the Plan prior to the Termination Date shall not affect the Board’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such earlier termination.

 

16.                               GOVERNMENT REGULATIONS

 

The Plan, the granting and exercise of Awards hereunder and the obligation of the Company to sell and deliver Stock under such Awards shall be subject to all applicable laws, rules, regulations, approvals and consents whether of the United States, the State of Israel, or any other State having jurisdiction over the Company or the Participant, including the registration of the Stock under the United States Securities Act 1933 or under the securities act of any applicable jurisdiction, and to such approvals by any governmental agencies or national securities exchanges as may be required. Nothing herein shall be deemed to require the Company to

 

 

register the Stock under the securities law of any jurisdiction.

 

17.                               CONTINUANCE OF EMPLOYMENT

 

Neither the Plan nor any Award Agreement shall impose any obligation on the Company or an affiliate to continue any Participant in its employ or service, and nothing in the Plan or in any Award granted pursuant hereto shall confer upon any Participant any right to continue in the employ or service of the Company or an affiliate thereof or restrict the right of the Company or an affiliate thereof to terminate such employment or service at any time.

 

18.                               GOVERNING LAW AND JURISDICTION

 

The Plan shall be governed by and construed and enforced in accordance with the laws of the State of California as applicable to contracts made and to be performed therein, without giving effect to the principles of conflict of laws. The competent courts of the State of California shall have sole jurisdiction in any matters pertaining to the Plan.

 

19.                               TAX CONSEQUENCES

 

Any tax consequences to any Participant arising from the grant or exercise of any Award, from the payment for Stock 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 shall not be required to release any Stock certificate to a Participant until all required payments have been fully made.

 

20.                               NON-EXCLUSIVITY OF THE PLAN

 

The adoption of the Plan by the Board shall not be construed as amending, modifying or rescinding any previously approved incentive arrangements or as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of Awards otherwise then under the Plan, and such arrangements may be either applicable generally or only in specific cases. For the avoidance of doubt, prior grant of awards to Participants of the Company under their employment agreements, and not in the framework of any previous incentive plan, shall not be deemed an approved incentive arrangement for the purpose of this Section.

 

 

21.                               MULTIPLE AGREEMENTS

 

The terms of each Award may differ from other Awards granted under the Plan at the same time, or at any other time. The Board may also grant more than one Award to a given Participant during the term of the Plan, either in addition to, or in substitution for, one or more Awards previously granted to that Participant.

 

22.                               RULES PARTICULAR TO SPECIFIC COUNTRIES

 

Notwithstanding anything herein to the contrary, the terms and conditions of the Plan may be adjusted with respect to a particular country by means of an addendum to the Plan in the form of an appendix (the “Appendix”), and to the extent that the terms and conditions set forth in the Appendix conflict with any provisions of the Plan, the provisions of the Appendix shall govern. Terms and conditions set forth in the Appendix shall apply only to Awards issued to Participants under the jurisdiction of the specific country that is subject of the Appendix and shall not apply to Awards issued to any other Participant. The adoption of any such Appendix shall be subject to the approval of the Board and if required the approval of the stockholders of the Company.

 

*                                         *                                         *

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