Document:

EXHIBIT 10.1

 

EXECUTION COPY

 

SEPARATION AGREEMENT AND GENERAL RELEASE

 

This SEPARATION AGREEMENT AND GENERAL RELEASE
(the “Agreement”) is entered into by and between DONALD JONES (hereinafter referred to as “Employee”) and
FREDERICK’S OF HOLLYWOOD GROUP INC., a New York corporation (hereinafter referred to as the “Company”).

 

Recitals

 

A.             
Employee has been employed by the Company since August
22, 2011. Employee’s last day of employment will be March 15, 2013.

 

B.             
 Employee and the Company wish to enter into an Agreement
to clarify and resolve any disputes that may exist between them arising out of the employment relationship and its termination,
and any continuing obligations of the parties to one another following the end of the employment relationship. This Agreement constitutes
the entire agreement of the parties with respect to their post-employment relationship.

 

C.             
 In consideration of the Company’s agreement
to pay Employee a termination payment set forth herein, the Company has asked Employee to waive any and all rights Employee may
have in potential claims against the Company. The Company has advised Employee of Employee’s right to consult an attorney
at Employee’s own expense prior to signing this Agreement and has provided Employee with twenty-one (21) calendar
days in which to consider this Agreement and seek legal assistance. Employee has either consulted an attorney of Employee’s
choice or voluntarily elected not to consult legal counsel, and understands that Employee is waiving all potential claims against
the Company and its agents.

 

D.             
This Agreement is not and should not be construed
as an admission or statement by either party that it or any other party has acted wrongfully or unlawfully. Both parties expressly
deny any wrongful or unlawful action and enter this Agreement for the sole purpose of clarifying and resolving any potential issues
between them.

 

E.             
  The Effective Date of this Agreement
is defined in Section 10(d) hereof. Each of the covenants and obligations set forth herein is contingent upon the occurrence of
the Effective Date.

 

Agreements

 

NOW, THEREFORE, in consideration of the
foregoing recitals and the mutual promises contained below, it is agreed as follows:

 

1.                 
Employment Ending Date. Employee’s employment with Company will terminate effective on March 15, 2013
(“Termination Date”). Employee will have no further employment duties or responsibilities to the Company after the
Termination Date. Should Employee file a claim for unemployment benefits following the Termination Date, the Company will not contest
it.

 

    	

    	 

    

 

 

2.                 
Separation Benefits. Employee is not eligible for any payments or benefits by virtue of Employee’s employment
with the Company or termination thereof except for those expressly described in this Agreement. Employee will not receive the pay
and benefits described in Section 2 of this Agreement if Employee (i) does not sign and return this Agreement, (ii) revokes this
Agreement after signing it during the applicable revocation period, or (iii) violates any of the terms and conditions set forth
in this Agreement. If Employee timely signs this Agreement and does not revoke it, and complies with the terms of this Agreement,
Employee will receive the following benefits in consideration of Employee’s releases of claims in favor of the Company, which
are in addition to anything Employee is otherwise entitled to or has been paid by the Company, including but not limited to any
accrued and unused vacation pay:

 

(a)               
The Company shall pay Employee the aggregate gross amount of $200,000 (six (6) months’ base salary), less applicable
withholding deductions (the “Severance Amount”), which will be paid in accordance with the Company’s customary
payroll procedures commencing with the first payroll date following the Effective Date, as defined in Section 10(d) of this Agreement,
and continuing until the Severance Amount is paid in full.

 

(b)              
Employee’s medical, dental and vision benefits coverage will end as of the last day of the month in which Employee’s
employment terminates, unless Employee elects to self-pay for health insurance continuation benefits under the Consolidated Omnibus
Budget Reconciliation Act of 1985 (COBRA).

 

(c)               
The Company currently maintains a $1,500,000 life insurance policy for Employee’s benefit (Carrier: ING Reliastar
Life), for which the cost of the annual premium has previously been paid for the annual period ended February 23, 2013. If employee
desires to continue coverage under this policy after the Termination Date, the Company shall transfer
ownership of the policy to Employee. Employee will be responsible for payment directly to the carrier of all premiums after the
Termination Date and the Company will not have any further obligation to pay any costs or premiums associated with such
insurance plan at any time.

 

(d)              
Employee has been covered under a Company group long-term disability insurance policy (“Group
LTD”) and a Company group core life and AD&D insurance policy (“Group Life” and, together with Group LTD,
the “Policies”) (Carrier: Cigna). In the event Employee elects to continue coverage and convert the Policies to individual
policies after the Termination Date, Employee will be responsible for payment directly to the carrier of all premiums after the
Termination Date and the Company will not have any further obligation to pay any costs or premiums associated with the Policies
at any time.

 

(e)               
Except as expressly provided in this Section 2 or as required by applicable law, Employee shall not have the right to continue
participation in any Company benefit plan following the Termination Date.

 

(f)               
Pursuant to a Stock Option Agreement, dated September 8, 2011, between the Company and Employee (“September 2011 Option
Agreement”), Employee was granted 150,000 stock options with an exercise price of $0.62 per share under the Company’s
2010 Long Term Incentive Equity Plan (“2010 Plan”), of which 75,000 stock options have previously vested. In accordance
with the terms of the September 2011 Option Agreement, the 75,000 stock options that would have otherwise vested on August 22,
2013 will continue to vest as scheduled, and such stock options, together with the 75,000 stock options that have previously vested,
will continue to be exercisable until September 7, 2021.

 

    	2

    	 

    

 

 

(g)              
Pursuant to a Stock Option Agreement, dated January 11, 2012, between the Company and Employee (“January 2012 Option
Agreement”), Employee was granted 42,000 stock options with an exercise price of $0.40 per share under the 2010 Plan, of
which 28,000 stock options have previously vested. In accordance with the terms of the January 2012 Option Agreement, any stock
options that have vested as of the Termination Date will be exercisable for a period of three (3) months after the Termination
Date. Any stock options that have not vested as of the Termination Date will expire on the Termination Date.

 

(h)              
Pursuant to a Restricted Stock Agreement, dated September 8, 2011, between the Company and Employee (“September 2011
Restricted Stock Agreement”), Employee was issued 80,000 shares of restricted stock under the 2010 Plan, of which 40,000
shares have previously vested and 40,000 shares are scheduled to vest on August 22, 2013. In accordance with the terms of the September
2011 Restricted Stock Agreement, the 40,000 shares of restricted stock that have vested as of the Termination Date will remain
vested and outstanding, and the 40,000 shares of restricted stock that would have otherwise vested on August 22, 2013 will continue
to vest as scheduled.

 

(i)                
Pursuant to a Restricted Stock Agreement, dated January 11, 2012, between the Company and Employee (“January 2012
Restricted Stock Agreement”), Employee was issued 18,000 shares of restricted stock under the 2010 Plan, of which 12,000
shares have previously vested and 6,000 shares are scheduled to vest on January 12, 2014. In accordance with the terms of the January
2012 Restricted Stock Agreement, the 12,000 shares of restricted stock that have vested as of the Termination Date will remain
vested and outstanding, and the 6,000 shares of restricted stock that have not vested as of the Termination Date will expire on
the Termination Date.

 

(j)                
Employee shall remain subject to the Company’s Insider Trading Policy and applicable securities laws, which impose
limits on when employees or recently separated employees are permitted to trade in the Company’s securities.

 

3.                 
Other Payments. The Company will pay Employee:

 

(a)               
an amount representing all accrued but unused vacation time as of the Termination Date, less all applicable withholding
deductions, payable in a lump sum on the Termination Date. As of the Termination Date, Employee had 119.38 hours of accrued and
unused vacation time; and

 

(b)              
subject to presentation of appropriate documentation, all valid business expenses incurred through the Termination Date,
payable as soon as practicable thereafter.

 

4.                 
Return of Company Property. Employee covenants, represents and warrants to the Company that, on or prior to
the Termination Date, Employee will return to the Company any and all materials and property of the Company of any type
whatsoever (including, without limitation, all computers, computer equipment, any mobile phones and devices, all credit cards,
office keys, identification badges, access cards, correspondence, tangible proprietary information, documents, records, notes,
contracts, and other confidential or proprietary materials) that have been in Employee’s possession or control.

 

    	3

    	 

    

 

 

5.                 
Survival of Certain Employment Agreement Provisions. As of the Effective Date (defined in Section 10(d)),
all rights, obligations and responsibilities of the parties under the Employment Agreement between the Company and Employee, dated
September 8, 2011 (“Employment Agreement”) are terminated in all respects, except for Employee’s obligations
under Section 6 of the Employment Agreement relating to non-disclosure of the Company’s confidential information and non-solicitation,
which survive termination of the Employment Agreement.

 

6.                 
Confidentiality of Separation Agreement; Non-Disparagement.

 

(a)               
Employee agrees to keep the terms of this Agreement (including, but not limited to the Severance Amount) and any negotiations
related thereto, completely confidential, and not to disclose any information concerning this Agreement or its terms except (i)
to Employee’s immediate family, legal counsel, and/or financial advisors, who will be informed of and bound by this confidentiality
clause, (ii) in response to a subpoena issued by a court of competent jurisdiction or as otherwise required by law and (iii) Employee
may disclose the terms of (but not the negotiations related to) this Agreement once the Agreement has been publicly filed with
the U.S. Securities and Exchange Commission (“SEC”).

 

(b)              
Employee shall refrain from disparaging the Company, its subsidiaries, its affiliates and their respective officers, directors,
independent contractors and employees.

 

(c)               
Management of the Company will respond to any inquiries from prospective employers of Employee by verifying Employee’s
prior dates of employment, salary and title, without disparaging comment or information.

 

7.                 
General Release of Claims. Employee expressly waives any and all claims against the Company and releases the
Company, including, without limitation, its officers, directors, members, shareholders, managers, consultants, agents, attorneys,
parent and subsidiary corporations, and representatives (the “Company Releasees”), from any and all claims that Employee
may have against the Company Releasees, or any of them, arising from events that occurred prior to the Effective Date, including
but not limited to claims in any way connected with Employee’s employment with the Company and the termination thereof, whether
or not such claims are presently known or unknown to Employee. It is understood that this release includes, but is not limited
to, any claims for wages, commissions, bonuses, employment benefits, or damages of any kind whatsoever, arising out of contracts,
express or implied, any covenant of good faith and fair dealing, express or implied, any theory of unlawful discharge, any legal
restriction on the Company’s right to terminate employees, or any federal, state or other government statute or ordinance,
including, without limitation: Title VII of the Civil Rights Act of 1964; the federal Age Discrimination in Employment Act of 1967
(29 U.S.C. § 621, et seq.); the Americans with Disabilities Act (ADA); the ADA Amendments Act; the Employee
Retirement Income Security Act of 1974, as amended (ERISA); 42 U.S.C. § 1981; the Occupational Safety and Health Act, 29 U.S.C.
§ 651 et seq. (OSHA); Family and Medical Leave Act, 29 U.S.C. § 2601 et seq, (FMLA); Worker Adjustment and Retraining
Notification Act, 29 U.S.C. §§ 2101-2109 (WARN); the federal False Claims Act; the Fair Labor Standards Act; the California
Fair Employment and Housing Act, as amended, including, without limitation, 2 California Code of Regulations § 7287.4(d)(1);
California Government Code §§ 12940, et seq, the California Business and Professions Code; the California Labor Code,
the California Constitution; California Industrial Welfare Commission Wage Orders; any state laws concerning discrimination or
harassment; or any other legal limitation on the employment relationship.

 

    	4

    	 

    

 

 

This waiver and release shall not waive
or release claims where the events in dispute first arise after execution of this Agreement, nor shall it preclude Employee or
the Company from filing a lawsuit for the exclusive purpose of enforcing Employee’s or the Company’s rights under this
Agreement.

 

8.                 
No Existing Claims. Employee warrants that neither Employee nor Employee’s successors, heirs, administrators,
executors, assigns, attorneys, agents, or representatives have (a) filed, or intend to file, any complaints, charges, grievances
or lawsuits against the Company Releasees with any federal, state, or other court or agency in any jurisdiction inside or outside
the United States or (b) commenced, or intend to commence, any arbitration or other dispute resolution process, and Employee for
himself, his successors, heirs, administrators, executors, assigns, attorneys, agents, and representatives, warrants that they
will not do so at any time hereafter, and that if any such other complaint, charge, lawsuit, or arbitration has been filed, it
will be immediately dismissed with prejudice.

 

9.                 
Release of Unknown Claims. It is the intention of Employee and the Company that this Agreement is a General
Release which shall be effective as a bar to each and every claim, demand, or cause of action it releases. Employee recognizes
that Employee may have some claim, demand, or cause of action against the Company of which Employee is totally unaware and unsuspecting
which Employee is giving up by execution of the General Release. It is the intention of Employee in executing this Agreement that
it will deprive Employee of each such claim, demand or cause of action and prevent Employee from asserting it against the Company.
In furtherance of this intention, Employee expressly waives any rights or benefits conferred by the provisions of, including but
not limited to Section 1542 of the Civil Code of the State of California (or any similar laws of other jurisdictions), which provides
as follows:

 

“A general release does not extend to claims
which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by
him or her must have materially affected his or her settlement with the debtor.”

 

10.             
Right of Revocation. In compliance with the Older Workers Benefit Protection Act (P.L. 101433), Employee does
hereby acknowledge and agree as follows:

 

(a)               
That this Agreement does not purport to waive rights or claims that may arise from acts or events occurring after the date
that this Agreement is executed by the parties;

 

(b)              
That this Agreement specifically applies to any rights or claims Employee may have against the Company under the federal
Age Discrimination in Employment Act of 1967, as amended;

 

    	5

    	 

    

 

 

(c)               
That the consideration provided for in this Agreement is in addition to that to which Employee is already entitled;

 

(d)              
That this Agreement shall be revocable by Employee for a seven (7) day period following execution of this Agreement by Employee.
Accordingly, this Agreement shall not become effective or enforceable until the expiration of the seven (7) day revocation period
(“Effective Date”); and

 

(e)               
That Employee, having carefully read this Agreement and knowing the contents hereof, freely and voluntarily consents to
all the terms and conditions herein, understands the final and binding effect of this Agreement, has been advised of Employee’s
right to and has been given a chance to consult with and review this Agreement with an attorney of Employee’s choice
prior to signing this Agreement, and has been given a period of twenty-one (21) days within which to consider whether to sign this
Agreement. In the event that Employee chooses to waive this twenty-one (21) day period, Employee acknowledges that Employee
was given a reasonable period of time within which to consider this Agreement and that Employee’s waiver was made freely
and voluntarily and without duress or any coercion by any other person, including anyone at the Company or the Company Releasees.

 

11.             
Cooperation. Employee agrees to cooperate with the Company, its financial and legal advisors and/or government
officials in connection with any business matters in which Employee was involved or any claims, investigations, administrative
proceedings or lawsuits which relate to Employee’s employment with the Company. Any request for Employee’s cooperation
will be upon reasonable advance written notice. All cooperation from Employee will be at mutually convenient times and locations.

 

12.             
Severability. The provisions of this Agreement are severable, and if any part of it is found to be unlawful
or unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent
with applicable law.

 

13.             
Entire Agreement. This Agreement sets forth the entire understanding between Employee and the Company and
supersedes any prior agreements or understandings, express or implied, pertaining to the terms of Employee’s employment with
the Company and the termination of the employment relationship. Employee acknowledges that in executing this Agreement, Employee
does not rely upon any representation or statement by any representative of the Company concerning the subject matter of this Agreement.

 

14.             
Governing Law. This Agreement shall be construed as a whole in accordance with its fair meaning and in accordance
with the laws of the State of California. The language of this Agreement shall not be construed for or against any particular party.
The headings used herein are for reference only and shall not affect the construction of this Agreement.

 

15.             
Attorney’s Fees. Should legal action be necessary to enforce or interpret this Agreement, the prevailing
party shall be entitled to reasonable attorney’s fees and costs.

 

16.             
Internal Revenue Code Section 409(A). The Company and Employee intend that this Agreement be fully compliant
with the requirements of Internal Revenue Code Section 409(A), and will take such steps and measures as may be or become necessary
to prevent and avoid the imposition of penalty, excise tax, interest or other expense to the Company and Employee.

 

    	6

    	 

    

 

 

17.             
Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the parties’
respective successors, assigns, heirs and estates.

 

18.             
Agreement Execution. Execution of this Agreement by facsimile or PDF signature will be acceptable. Additionally,
the parties may sign separate copies of this Agreement, each of which shall be deemed an original, all of which shall together
be deemed the same agreement.

 

19.             
Captions. The captions of the sections of this Agreement are for convenience of reference only and in no way
define, limit or affect the scope or substance of any section of this Agreement.

 

20.             
Further Assurances. From time to time, each of the parties shall execute, acknowledge, and deliver any instruments
or documents necessary to carry out the purposes of this Agreement.

 

21.             
Notices. If either party believes the other has failed to honor its obligations hereunder, it shall provide
the other party written notice thereof, including a written description of the believed default, and then thirty (30) days in which
to cure any such purported default. All notices provided for in this Agreement shall be in writing and shall be deemed to have
been duly given (i) when delivered personally to the party to receive the same, or (ii) when sent by a nationally recognized overnight
service provider such as FedEx, UPS or U.S. Postal Service Priority Mail, addressed to the party to receive the same at her or
its address set forth below, or such other address as the party to receive the same shall have specified by written notice given
in the manner provided in this Section 21. All notices shall be deemed to have been given as of the date of personal delivery or
mailing thereof.

 

	 	
        If to Employee:

        
	 
	 	Mr. Donald Jones	 
	 	 	 
	 	 	 
	 	 	 
	 	If to the Company:	 
	 	Frederick’s of Hollywood, Inc.	 
	 	6255 Sunset Blvd., 6th Floor	 

 

 

    	7

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement, consisting of eight (8) pages including this page, as of the dates indicated below.

 

 

	 	FREDERICK’S OF HOLLYWOOD GROUP INC.
	Date: March 18, 2013	 
	 	By: 	/s/ Thomas J. Lynch
	 	 	Thomas
    J. Lynch, Chief Executive Officer

 

	 	EMPLOYEE:
	Date: March 21, 2013	 
	 	By: 	/s/ Donald Jones
	 	 	Donald
    Jones

 

    	8exhibit_4-1.htm

Exhibit 4.1

Consulting Agreement

 

This Consulting Agreement is effective as of the 10 day of October, 2012 (“Effective Date”) by and between Top Image Systems Ltd., a Company duly registered in the State of Israel of Ben Gurion St. 2, Ramat Gan (the “Company”) and Mr. Izhak Nakar, ID. No. 050331339 of Romanili 4 Tel Aviv (“Mr. Nakar”).

 

Whereas, Mr. Nakar is the founder of the Company, has served since the Company’s inception and until May 2001 as the Company’s CEO and thereafter, as a member and a chairman of the Company’s Board of Directors (the “Board” and the “Chairman of the Board” respectively) and currently serves as the active Chairman of the Board; and

 

Whereas, Mr. Nakar has unique knowledge, experience and expertise in the data capturing field in general and in the Company’s business and needs in particular which are vital to the continuing business development of the Company and the Company wishes to continue to engage Mr. Nakar to assist the Company in developing its business worldwide and contribute to the Company with his proficiency; and

 

Whereas, Mr. Nakar has represented to the Company that he is willing to assist the Company in developing its businesses, that he will invest all requisite time and effort for such purpose as may be required by the Board from time to time and that such assistance will not breach any of his other commitments; and

 

Whereas, the terms of engagement of Mr. Nakar were previously determined by the authorized organs of the Company and approved by its shareholders, and now, the  Parties wish to record in an agreement, the terms under which Mr. Nakar will continue to serve as the Company’s Active Chairman of the Board (as defined below);

 

Now therefore, the Parties hereby agree as follows:

 

	
1.

	
Scope

 

	
  

	
1.1

	
Subject to the provisions of any applicable law and the required approvals of the Company’s organs, Mr. Nakar will take an active role in the Company’s management and will serve as an “Active Chairman of the Board”.

 

	
  

	
1.2

	
In his capacity as an Active Chairman of the Board, Mr. Nakar will explore new business opportunities for the Company in order to expend the Company’s business worldwide including, inter alia the following: (i) building a long term strategy for the Company identifying and negotiating potential M&A transactions for the Company; (ii) setting and executing the Company’s financing strategy; (iii) assisting in targeting potential investors; (iv) assisting in targeting potential strategic business partners; (v) negotiating transactions that are not in the Company’s ordinary course of business; and (vi) assisting the Company’s senior management in planning the Company’s long term budget. In addition Mr. Nakar will carry out any tasks assigned to him by the Board as the Board may decide from time to time in order to promote the Company and its business.

 

	
2.

	
Consideration

 

	
  

	
2.1

	
In consideration for his services to the Company worldwide, and based on the assumption that Mr. Nakar invests most of his working time in the furtherance of the Company’s business, Mr. Nakar will be entitled to consideration in the amount of US $28,125 plus VAT per month (“Remuneration”). The Remuneration will be paid in US Dollars against a valid tax invoice, no later than the 10th day of every month for the preceding month.

 

  

  

  

 

	
  

	
2.2

	
In addition to the Remuneration, and subject to a determination to this effect by the Board, and the approval of the relevant Company’s organs, according to any applicable law, Mr. Nakar will be entitled to receive a yearly bonus based on the Company performances and Mr. Nakar’s contribution to it (the “Bonus”). Such Bonus may be comprised of cash or options to purchase shares of the Company (or combination of cash and options) at the sole discretion of the Board.

 

	
  

	
2.3

	
Mr. Nakar will be entitled to be reimbursed for reasonable out of pocket expenses incurred by him in the performance of the duties, subject to the presentation of appropriate receipts to the Company in accordance with the general policies of the Company, and to medical insurance while traveling on behalf of the Company.

 

	
  

	
2.4

	
Mr. Nakar will be entitled to indemnification from the Company, in the form of the standard indemnification letter issued by the Company to all of its office holders (as may be amended from time to time), and will be covered under the “Directors and Officers” insurance policy purchased by the Company to cover the liability of its officers and directors.

 

	
  

	
2.5

	
If the Company will decide to grant all of its Board members options to purchase shares of the Company, Mr. Nakar will be entitled, in addition to the Remuneration and the Bonus, to such number of options and under such terms and conditions as may be decided by the Board and approved by the requisite organs of the Company according to any applicable law.

 

	
  

	
2.6

	
Other than as specifically stated above, Mr. Nakar shall not be entitled to any other or additional consideration from the Company in connection with the rendering of his services.

 

	
  

	
2.7

	
Mr. Nakar will bear all taxes or other payments due with respect to the payments to him in accordance with this Agreement including, without limitation, income tax, social security, health insurance etc.

 

	
3.

	
Term of Agreement

 

	
  

	
3.1

	
The term of this agreement is 12 months commencing on the Effective Date as approved by the Company’s shareholders general meeting (the “Initial Term”). The Agreement will automatically be extended for additional 12 month periods (each an “Additional Term” and the Initial Term and all Additional Terms together, the “Term”) unless determined otherwise by the Company’s relevant organs.

 

	
  

	
3.2

	
Notwithstanding Section 3.1 above, either party may terminate this Agreement upon 6 months’ prior notice to the other party, provided that if termination is by the Company as a result of a Change in the Control of the Company, the Company may terminate this Agreement upon 12 months’ prior notice to Mr. Nakar.

 

“Change of Control” shall mean any of the following: (i) a change in the ownership or rights of the Company's share capital or a voting agreement or any other event, following which any one person (either alone or together with any person acting in concert with him) holds 25% or more of the share capital or the voting rights in the Company; (ii) a change in the rights of appointment of directors or the general manager of the Company following which any one person (either alone or together with any person acting in concert with him) has the right to appoint more than 25% of the directors or the right to appoint the general manager of the Company; (iii) a sale of all or substantially all of the assets of the Company.

 

  

2

  

 

	
  

	
3.3

	
The Company’s undertakings under this Agreement, which require approval in accordance with the provisions of law, are subject to the approval of the Company’s audit committee, compensation committee, Board of Directors and the Company’s shareholders. It is hereby clarified that after approval by the above organs, the Company’s undertakings under this Agreement shall be binding upon the Company henceforth and until termination of the Agreement in accordance with its terms.

 

	
4.

	
Confidentiality and Proprietary Rights

 

	
  

	
4.1

	
Except as required in order to perform his duties hereunder, in Mr. Nakar’s discretion, Mr. Nakar shall maintain Confidential and Proprietary Information (as defined below) strictly confidential and will not disclose it to any third party. “Confidential and Proprietary Information” means information relating to the business and operation of the Company including without limitation, operational methods, plans or strategies, business plans, invention and research projects, patents, copyrights, trademarks, trade secrets, engineering specifications, product designs, technical information, data and know-how, customer lists, supplier lists, market surveys and other.

 

	
  

	
4.2

	
When disclosing Confidential and Proprietary Information in the performance of his duties hereunder, Mr. Nakar will take appropriate steps required in his discretion to ensure that the confidentiality of the Confidential and Proprietary Information will be maintained.

 

	
  

	
4.3

	
Mr. Nakar hereby assigns and transfers to the Company all discoveries, developments, designs, inventions and improvements made or acquired by him (“Creations”) During the Term. Mr. Nakar undertakes and agrees to fully disclose any Creations to the Company and to treat the Creations as Confidential Proprietary Information of the Company.

 

	
  

	
4.4

	
For the purpose of this Section 4, “the Company” shall also include any of the Company’s subsidiaries or affiliates in Israel and worldwide.

 

	
5.

	
Independent Contractor

 

	
  

	
5.1

	
Mr. Nakar is an independent contractor and is not an agent or employee of the Company. Mr. Nakar will not be entitled to any social or other benefits from the Company and hereby acknowledge and agree that the Remuneration to be granted to him hereunder was determined taking into account that all of the relevant social benefits will be purchased by him, and was set at 40% higher than he would have received as an employee.

 

	
  

	
5.2

	
In the event that, for any reason whatsoever, any court or governmental authority shall decide that Mr. Nakar shall be entitled to any social benefits from the Company arising out of employment relations, or that the Company should have withheld or paid tax of any kind in respect of the Mr. Nakar, then Mr. Nakar shall indemnify the Company and hold the Company harmless from any and all amounts awarded against the Company and shall return to the Company all amounts received by it in excess, i.e. 40% of the Remuneration, in addition to index linkage differentials and interest according to the law, from the time of their payment by the Company and until their actual pay back.

 

  

3

  

 

	
6.

	
Miscellaneous

 

	
  

	
6.1

	
The competent courts in the city of Tel Aviv will have exclusive jurisdiction to adjudicate any matter involving or relating to this Agreement.

 

	
  

	
6.2

	
This Agreement supersedes any prior agreement between the Company and Mr. Nakar, with respect to the subject matter hereof.

 

	
  

	
6.3

	
Any term of this Agreement may be amended, only by the written consent of both parties hereto, provided, however, that such amendment is subject to the approval of the relevant organs of the Company according to any applicable law.

 

IN WITNESS WHEREOF, the parties hereto have entered into and signed this Agreement to be effective as of the date stated above.

 

	
_____________________

	
_____________________

	
Top Image Systems Ltd.

	
Izhak Nakar

	
By: Osnat Segev - Harel and Assael Karfiol

	  
	
        External Directors

	  

 

4

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