Document:

fs10901_x107-nair.htm

EXHIBIT 10.7 INDEMNIFICATION AGREEMENT

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of ________, 2009 between New Air, Inc. (the “Company”), and ____________ (“Indemnitee”).

 

WITNESSETH THAT:

 

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the
corporation;

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being
increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The By-laws of the Company require indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Maryland (“MGCL”).  The
By-laws and the MGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

 

WHEREAS, this Agreement is a supplement to and in furtherance of the By-laws of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS, Indemnitee does not regard the protection available under the Company's By-laws and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve,
continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified; and

 

 

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NOW, THEREFORE, in consideration of Indemnitee’s agreement to serve as a director after the date hereof, the parties hereto agree as follows:

 

1. Indemnity of Indemnitee.  The Company hereby agrees to hold harmless and indemnify Indemnitee to the fullest
extent permitted by law, as such may be amended from time to time.  In furtherance of the foregoing indemnification, and without limiting the generality thereof:

 

(a) Proceedings Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the
rights of indemnification provided in this Section l(a) if, by reason of his Corporate Status (as hereinafter defined), the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or in the right of the Company.  Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses
(as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him, or on his behalf, in connection with such Proceeding or any claim, issue or matter therein, if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe the Indemnitee’s conduct was unlawful.

 

(b) Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights of indemnification
provided in this Section 1(b) if, by reason of his Corporate Status, the Indemnitee is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company.  Pursuant to this Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the Indemnitee, or on the Indemnitee’s behalf,
in connection with such Proceeding if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the Company; provided, however, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court of Chancery of the State of Delaware shall determine
that such indemnification may be made.

 

(c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  Notwithstanding any other provision
of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified to the maximum extent permitted by law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less
than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

2. Additional Indemnity.  In addition to, and without regard to any limitations on, the indemnification provided
for in Section 1 of this Agreement, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation,
all liability arising out of the negligence or active or passive wrongdoing of Indemnitee.  The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof)
to be unlawful.

 

 

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3. Contribution.

 

(a) Whether or not the indemnification provided in Sections 1 and 2 hereof
is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring Indemnitee to contribute to such payment and the Company hereby waives and relinquishes any right of contribution it may have against Indemnitee.  The
Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee.

 

(b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any
portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors
or employees of the Company, other than Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees
of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the Law may require to be considered.  The relative fault of the Company and all officers, directors or employees of the Company, other than Indemnitee, who are jointly
liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

 

(c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims of contribution which may be brought by officers, directors or employees of the Company, other
than Indemnitee, who may be jointly liable with Indemnitee.

 

(d) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in
lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

 

 

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4. Indemnification for Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent
that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

5. Advancement of Expenses.  Notwithstanding any other provision of this Agreement, the Company shall advance
all Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by an undertaking
by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses.  Any advances and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free.

 

6. Procedures and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this
Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the Delaware General Corporation Law and public policy of the State of Delaware.  Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably
available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

 

(b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 6(a) hereof, a determination,
if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following four methods, which shall be at the election of the board:  (1) by a majority vote of the disinterested directors, even though less than a quorum, by a committee of disinterested directors designated by a majority vote of the disinterested directors, even though less than a quorum, (2) if there are no disinterested directors or if the disinterested directors
so direct, by independent legal counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the Indemnitee, or (3) if so directed by the Board of Directors, by the stockholders of the Company.  For purposes hereof, disinterested directors are those members of the board of directors of the Company who are not parties to the action, suit or proceeding in respect of which indemnification is sought by Indemnitee.

 

 

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(c) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) hereof,
the Independent Counsel shall be selected as provided in this Section 6(c).  The Independent Counsel shall be selected by the Board of Directors.  Indemnitee may, within 10 days after such written notice of selection shall have been given, deliver to the Company, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in Section 13 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If a written objection is made and substantiated, the Independent
Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of
Delaware or other court of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the Company’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section
6(b) hereof.  The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was
selected or appointed.

 

(d) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement.  Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.  Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard
of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by the officers of the Enterprise (as hereinafter defined) in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise.  In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of
the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.  Whether or not the foregoing provisions of this Section 6(e) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

 

 

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(f) If the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee
is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification,
or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section
6(g) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination, the Board of Directors or the Disinterested Directors, if appropriate, resolve to submit such determination to the stockholders for their consideration at an annual meeting thereof to be
held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

 

(g) Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including
providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any Independent Counsel, member of the Board of Directors or stockholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnitee’s entitlement to indemnification under this Agreement.  Any
costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(h) The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction,
disruption and uncertainty.  In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding.  Anyone seeking to overcome this presumption shall have
the burden of proof and the burden of persuasion by clear and convincing evidence.

 

(i) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall
not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

 

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7. Remedies of Indemnitee.

 

(a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that Indemnitee is not entitled
to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to Section 6(b) of this Agreement within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement
within ten (10) days after receipt by the Company of a written request therefor or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of Indemnitee’s entitlement to such indemnification.  Indemnitee shall commence such proceeding seeking an adjudication within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a).  The Company shall not oppose Indemnitee’s right to seek any such adjudication.

 

(b) In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is
not entitled to indemnification, any judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial on the merits, and Indemnitee shall not be prejudiced by reason of the adverse determination under Section 6(b).

 

(c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled to indemnification,
the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 7, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his rights under, or to
recover damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company, the Company shall pay on his behalf, in advance, any and all expenses (of the types described in the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication, regardless of whether Indemnitee ultimately is determined
to be entitled to such indemnification, advancement of expenses or insurance recovery.

 

(e) The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that
the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that the Company is bound by all the provisions of this Agreement.  The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to Indemnitee, which are incurred by Indemnitee in connection
with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.

 

 

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(f) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final
disposition of the Proceeding.

 

8. Non-Exclusivity; Survival of Rights; Insurance; Primacy of Indemnification; Subrogation.

 

(a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law,
the certificate of incorporation of the Company, the Bylaws, any agreement, a vote of stockholders, a resolution of directors or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in the Delaware General Corporation Law, whether
by statute or judicial decision, permits greater indemnification than would be afforded currently under  the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or
of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all
papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d) Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received
such payment under any insurance policy, contract, agreement or otherwise.

 

(e) Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.

 

 

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9. Exception to Right of Indemnification. Notwithstanding any provision in this Agreement, the Company shall not be obligated
under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

 

(a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount
paid under any insurance policy or other indemnity provision, provided, that the foregoing shall not affect the rights of Indemnitee or the Fund Indemnitors set forth in Section 8(c) above; or

 

(b) for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section
16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

 

(c) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against
the Company or its directors, officers, employees or other indemnitees, unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

10. Duration of Agreement.  All agreements and obligations of the Company contained herein
shall continue during the period Indemnitee is an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as Indemnitee shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not he
is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement.  This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal
and legal representatives.

 

11. Security.  To the extent requested by Indemnitee and approved by the Board of Directors of the Company, the
Company may at any time and from time to time provide security to Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral.  Any such security, once provided to Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.

 

12. Enforcement.

 

(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as an officer
or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company.

 

 

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(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written
and implied, between the parties hereto with respect to the subject matter hereof.

 

13. Definitions.  For purposes of this Agreement:

 

(a) “Corporate Status” describes the status of a person who is or was a director, officer, employee, agent or fiduciary
of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the express written request of the Company.

 

(b) “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect
of which indemnification is sought by Indemnitee.

 

(c) “Enterprise” shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise that Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary.

 

(d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of
experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation
the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(e) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation
law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

 

(f) “Proceeding” includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of the fact that Indemnitee is or was an officer or director of the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer or director of the
Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other Enterprise; in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee
pursuant to Section 7 of this Agreement to enforce his rights under this Agreement.

 

 

10

 

14. Severability.  The invalidity of unenforceability of any provision hereof shall in no way affect the validity
or enforceability of any other provision.  Without limiting the generality of the foregoing, this Agreement is intended to confer upon Indemnitee indemnification rights to the fullest extent permitted by applicable laws.  In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

 

15. Modification and Waiver.  No supplement, modification, termination or amendment of this Agreement shall be
binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

 

16. Notice By Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with
or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder.  The failure to so notify the Company shall not relieve the Company of any obligation which it may have to Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

 

17. Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing
and shall be deemed effectively given:  (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt.  All communications shall be sent to the addresses kept by the Company or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

 

18. Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same Agreement.  This Agreement may also be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

19. Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not
be deemed to constitute part of this Agreement or to affect the construction thereof.

 

 

11

 

20. Governing Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall
be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought in the competent courts in the State of Maryland, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive
jurisdiction of the court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the court has been brought in an improper or inconvenient forum.

 

 

  

12

  

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

 

___________________

COMPANY

By: Lior Carmeli

Title: CEO

INDEMNITEE

______________________________________

Name: ______________

  

13fs10901_x108-nair.htm

EXHIBIT 10.8 EMPLOYMENT AGREEMENT OF YAAKOV BAL, CTO

 

EMPLOYMENT AGREEMENT made entered into  on this 1st day of July  2009

BETWEEN:

Baby's Breath Ltd. a company registered under the laws of the State of Israel, Registration Number 51-3076943 (the “Company”)

 

and

 

	
  
	
Yaakov Bal I.D. No 064818131  of  Hashlosha Str17/5, Petach Tikva 49380

 

	
  
	
(the “employee").

	
WHEREAS
	
Company is interested in employing the employee in the capacity of Chief Technical Officer "CTO" and the employee desires to be so employed by the Company, all in accordance with the terms and conditions set forth below

NOW THEREFORE, the parties hereto agree as follows:

 

	
1.  
	
PREAMBLE and INTERPRETATION

 

	
1.1  
	
The preamble to this Agreement is an integral part thereof.

 

	
1.2  
	
The use of clause headings and the list of contents are inserted for ease of reference only, and are not intended to affect the contents of the particular clauses.

 

	
2.  
	
EMPLOYMENT

 

	
2.1  
	
The Employment by the Company of the Employee shall commence on ____________ (commencement) and the Employee shall be employed part time in the capacity of Chief Technical Officer (“CTO”) of the Company. The Employee will perform all the duties and exercise all the powers of his office
and such other functions within the Company. The Employee shall be under the direct supervision of and comply with the directives of the Board of Directors, and will promptly whenever required so to do, give a full account to the Board of all matters with which he is entrusted and supply the company with all information or reports concerning the company and the carrying out of his duties as directed or as required by the company.

  

1

  

	
2.2  
	
As the employment is part time, the Employee will be allowed to engage in other activities and will dedicate his time and attention, to the best of his ability to fulfil his duties to the company.

 

	
2.3  
	
Either of the parties to this agreement may terminate this Agreement at any time  by written notice of at least thirty (30)days prior to such termination. (Notice of termination).

 

	
2.4  
	
Notwithstanding the above, the company is entitled to terminate the employment of the employee or to reduce the period of notice of termination whether tendered by the employee or by the company, provided that the employee will be eligible to receive his basic wage as mentioned in the addendum A as if he was employed the company until completion of the
notice of termination as mentioned in clause 2.3 above.

 

	
2.5  
	
In the event of the Employee tendering his notice without fulfilling his obligations of notice of termination, the company will be entitled to deduct from any amount owing the employee, an amount equal to the normal wage that would have been payable for the period of the notice of termination during which the employee did not work, as reparation agreed
in advance. This, without detracting from the right of the company to demand damages incurred instead of the above reparation, for damages that were caused by the Employee not giving advance notice as required.

 

	
2.6  
	
Notwithstanding the above, and without detracting from its rights according to the agreement, the Company may terminate the employment of the Employee without advance notice of termination and with Cause according to law and / or agreement. Termination of Employment hereunder shall be deemed for “Cause” in the event : (1 ) the Employee embezzles
company monies; or (2 ) The employee willfully or materially breaches the terms of this Agreement; or (3 ) the employee, engages in gross neglect, insubordination or gross dereliction of his duties hereunder; or (4 ) the employee engages in willful misconduct; or (5 ) the conduct of the employee causes damage to the company or (6) the employee committed a criminal offence or was convicted of a criminal violation ; or (7 ) the employee is not able to fulfill his duties in the company during period of more than
60 (sixty) consecutive days.

  

2

  

 

	
2.7  
	
The employee will not have the right to make a lien on assets of the company or on company equipment or any other items including vehicle or cellular phone that have been given to him for his use, or information or confidential information  as described in appendix B to this agreement (" equipment
of the company " ) in his possession. The employee will return all equipment of the company that is in his possession not later than the day of termination of employer employee relations when going on notice, or 30 days (including leave due to advance notice of termination) – before his departure, or within 7 days from receipt of a request to do so by the company.

 

	
3.  
	
SPECIAL AGREEMENT

 

 It is agreed between the parties that this Agreement is personal and specific to the Employee and that the position of Employment is a management position which requires a special measure of personal trust, as stipulated in the Working Hours and Rest Law, 1951.
In light of such trust relations, the provisions of the said Law will not apply to the Employee's employment by the Company and the Employee shall not be entitled to the provisions of any collective bargaining agreement which exist or shall exist do not, and will not, apply to the employment of Employee, whether such agreement was signed among the government, the General federation of Labor and Employers' organizations, or any such parties, or whether signed by others, in relation to the field or fields of the
Company or in relation to the category of employees to which Employee belongs and whenever so required for the proper fulfillment of his duties or work the Employee may be required to work extra hours without further remuneration in excess of the normal hours of work of the Company; the employee will not be entitled to demand or accept payment for overtime for any and all hours spent while discharging his duties for the Company. The employee declares that the financial interpretation of this clause has been taken
into account when defining the remuneration as described in appendix A to this agreement.

 

 

3

 

	
4.  
	
REMUNERATION

 

In consideration for the employee working for the company and carrying out his obligations according to this agreement, and in accordance with the terms of this agreement and the appendices hereto, the employee will be entitled to a salary and terms and benefits as described in Appendix A attached.

 

	
5.  
	
CONFIDENTIALITY

 

	
5.1  
	
The Employee must not during the Employment or for a period of 6 years thereafter disclose to any third party or body outside of the company any information of the following :

 

	
5.1.1  
	
All Confidential Material or information or other documents, or property which may have come into his possession or under his control in the course of the Employment

 

	
5.1.2  
	
All Confidential Material or information or property which relate in any way to the Company shareholders or their families, including their business affairs, properties, obligations and any other business and/ or personal  information relating to the above.

 

	
  
	
5.1.3
	
All confidential material or information that could directly or indirectly cause the company damage.

 

	
5.2  
	
The Employee will not divulge any information relating to the company business and operations, and shall not in any way damage the company reputation, and shall not make any use of such information apart from the carrying out of his duties for the company. On signing this agreement the employee will sign a confidentiality agreement with the company regarding
non-disclosure, non competition, and intellectual property rights to the company, or any subsidiaries or any holding companies of the company as set out in appendix B.

 

4

 

 

	
6.  
	
OBLIGATIONS AND DECLARATIONS

 

The Employee declares and states as follows:

	
6.1
	
That he is not obligated by any existing obligation or other hindrance, whether by law, by Agreement, or in any other way, to his employment by the Company in the Position and to the performance of his obligations herein.

	
6.2
	
That he is not in breach of any rights or obligations owing to a previous employer and /or a third party.

	
  
	 

	
6.3
	
That he does not suffer from any ailment or that there is no health reason that prevents him or hinders him from carrying out his duties as described herein.

	
6.4
	
       That he will advise the company immediately and without delay of any event or matter in which he has a personal interest or a personal issue of his immediate family that may cause a conflict of interest with his position with the company.

	
  
	 

	
6.5
	
That he will not receive any benefit or additional payment from a third party, whether directly or indirectly for his duties with the company. A violation of this clause will without detracting from the company's rights according to the agreement and the law, will entitle the company to claim the benefit or remuneration as belonging to the company and will entitle the company to deduct the value of the benefit from
any amounts due to the employee.

	
6.6
	
That in carrying out his duties in his position at the company, he will not use or represent or make a claim or enter a obligation in the name of the Company and will not take on any obligation and or give any guarantee in the name of the company, unless instructed to do so by the Company or its managers or superior officers, explicitly and in writing in advance.

	
6.7
	
That he agrees that from time to time he may be required to travel and work abroad as may be required for the proper fulfillment of his duties.

	
6.8
	
That he will make use of the company property only for the fulfillment of his duties in his position with the company and he agrees and is aware that the company may carry out inspections at the work premises and on the company computers including electronic mails sent and received and the use of internet and content of all these programs. To clarify it is declared that all findings of the inspections will remain the
property of the company.

 

5

 

	
6.9
	
In any event of the termination of this agreement for any reason, the Employee will cooperate with the company and to the best of his ability assist in the orderly transfer of his position with the company and with the orderly training of his replacement and shall provide the company with any document or information whether written, photographed or recorded or any other information that he received or was provided with
by the company in the course of his carrying out his position.

 

	
7.  
	
GENERAL INSTRUCTIONS

 

 

	
7.1
	
This Agreement represents the entire understanding and agreement between the parties hereto and supersedes all prior negotiations, representations and agreements made by and between the parties prior to this Agreement, whether in writing, orally or in any other form.

 

	
7.2
	
This Agreement may be amended only by a written document signed and executed by all parties hereto and any amendment purportedly made in any other way shall not be binding on the parties hereto.

 

	
7.3
	
This Agreement shall be governed by and construed in accordance with the laws of the State of Israel, and the competent Courts in Tel-Aviv-Jaffa will have the sole jurisdiction in any dispute arising hereunder.

 

	
7.4
	
In case one or more of the provisions contained in this Agreement or the appendices shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement.

 

	
7.5
	
The employee declares that he has read all the clauses and fully understands all clauses and appendices of this agreement and he accepts all clauses unconditionally and he is signing this agreement and appendices freely and in full acceptance thereof.

 

 

6

 

	
7.6
	
Any notices required to be given under the provisions of this Agreement shall be in writing and correctly addressed to the relevant party's address as they appear in the preamble to this agreement and shall be deemed to have been duly served if hand delivered or sent by facsimile or by registered or recorded delivery post and shall be deemed to be received four working days after the date delivered to the postal
office and if delivered by hand on the date of delivery provided a receipt of delivery was obtained.

IN WITNESS whereof this Agreement has been executed by the parties

/s/Golan Gilad                                                                              /s/Yaakov
Bal

The Company:  Baby's Breath Ltd                                           The Employee

Signed By: Gilan Gilad

Position: CEO

Date:  June 30, 2009

 

  

7

  

Appendix A – REMUNERATION

 

	
1.  
	
Salary

 

 

	
1.1  
	
The Company will pay the Employee in return for his work a monthly salary in the amount of 2,000 NIS Gross Salary (Basic Salary).

 

	
1.2  
	
In the event that the company public offering takes place, the employee will be entitled to a gross basic salary of 6,000 NIS.

 

	
2.  
	
Insurance Policy

According to the decrees from time to time of the Tax authorities, and according to the maximum amount allowed, the Company shall effect a Managers' Insurance Policy (hereinafter the "Policy") in the name of Employee  and (1) the company shall pay an amount equal to  5% of
the Basic salary on account of such Policy on behalf of Employee and shall deduct 5% from the Employee's  Basic Monthly Wage to be paid on behalf of the Employee towards such Policy (the division of savings and risk within the policy shall be decided at the sole discretion of the Employee). (2) The company shall pay 8.33% of the Basic salary be on account of severance pay and (3) Up to a further 2.5% of
Employee's Basic Salary on account of disability insurance payments.

The Employee instructs the company to transfer payments towards the Policy from the Employees monthly salary. For avoidance of doubt, the Employee shall bear all taxes and any other applicable payments related to the above benefit should the amounts accumulated surpass the maximum amount that is tax free.

 

8

 

	
3.  
	
Release of Funds

 

	
  
	
Without detracting from the rights of the company by Law and or the employment agreement, as far as amounts paid by the company the Management insurance will be transferred to the Employee on completion of his duties and fulfillment of all obligations on termination of employment, for whatever reason, except for those reasons as stated in clause 2.6 of this agreement.

 

It is hereby declared that clause 14 of the Severance pay law of 1963 will be effected whereby according to the general approval of the employers payment to a pension fund or management insurance policy, instead of severance pay as per this agreement, the amounts accumulated in lieu of severance pay in the policy will be payable instead of
Severance pay to the Employee and shall be considered full payment of severance pay due. The amount of severance pay accumulated in the policy will be released to the Employee even if the Employee terminated employment on his own accord unless termination was due to any reason as stated in clause 2.6.

 

In accordance with the law, the company waives the right to a refund of monies paid to the Employee, unless the Employee's right to severance pay have been revoked according to the clauses described in this agreement and in clauses 16 and 17 of the above law or if the employee withdrew funds from the Policy or pension fund due to an entitling
event. Such an entitling event is death, disability or retirement at age 60 or over.

 

	
4.
	
Education Fund

 

From the date of public offering, the Company shall effect an education fund and shall pay a monthly amount to the fund in accordance with the law.

 

	
5.
	
Vacation, Sick Leave, Recreation Payment:

 

Employee shall be entitled to an annual vacation of 14 (fourteen) days that may be accumulated and may be converted into cash payments in an amount equal to the proportionate part of the Basic Salary according to law. The times that vacation days are to be taken shall be decided by
the company and as far as possible according to the request of the Employee.

 

 

9

 

Employee shall be entitled to paid Sick Leave days according to law. The employee shall be entitled to Recreation Payment, for number of days in accordance with the law, to be paid at the end of each work year, in the amount per day according to law.

 

	
6.  
	
Car

 

The company will bear 50% of the cost of the Employee's vehicle including license, insurance and petrol as against the submission of a tax Invoices. The company shall not bear the costs of traffic fines, parking tickets or fines of any kind. To be clear, the Company will not bear the taxation costs of such a benefit of the employee. The Employee
will ensure that the terms of the clauses of the insurance  policy are upheld.

	
7.  
	
Mobile Phone and Telephone expenses

 

The Company shall place at the Employee's disposal, for his own exclusive use to carry out his employment, a mobile phone of the Company, and shall bear all related expenses, conversations, maintenance, repairs and insurance and shall gross up the tax charged on the Employee in respect of this benefit. The telephone line shall belong to
the company. Within 7 days of termination of employee employer relations, the Employee shall return the phone to the company.

	
8.  
	
Expenses

 

The company shall  reimburse the Employee for business related expenses incurred in the carrying out of his duties and as approved in advance in writing by the company, on presentation of a tax invoice that reflect the payment of the expense and according to the company policy as defined from tome to time.

 

	
9.  
	
Taxes

 

The Company shall deduct at source all taxes or payable or other compulsory payments payable by the Employee as required by law for payments made to the employee or amounts received by him for any benefits he may be entitled to receive.

 

  

10

  

Appendix B – Letter of Undertaking

	
WHEREAS
	
Baby’s Breath Ltd. (hereinafter: “the Company”) is interested in employing the employee, subject to the provisions of this undertaking (hereinafter: “the Undertaking”);

	
WHEREAS
	
The Undersigned, Yaakov Bal I.D. No 064818131  of  Hashlosha Str17/5, Petach Tikva 49380  (hereinafter: “the Employee”) would like to enter into agreement under the terms of the transaction as aforesaid;

Accordingly, the Employee declares and undertakes the following vis-à-vis the Company:

1.             Confidential Information

The Employee acknowledges that he has access and shall have access to confidential information and information pertaining to assets, activities and technologies in connection with the Company, including: for product research and development, patents, copyrights, commercial secrets, clientele, marketing plans, strategies, forecasts, commercial
secrets, test results, formulas, procedures, information, knowledge, developments, inventions, techniques and products (current or planned). Such information, as aforesaid, in any form whatsoever, whether as a document, written, verbal, or by computer or magnetic media, shall be deemed “Confidential Information.”

During the period of his employment with the Company or at any time following the termination of the period of his employment, the Employee shall not disclose, for any reason whatsoever, to any person, corporation, partnership or entity whatsoever, any confidential information whatsoever, whether verbally, in writing or in any other manner
whatsoever that reached the Employee’s domain or was brought to his attention during the period of his employment with the Company or prior thereto (including proceedings and technologies that serve or shall serve the Company and the business thereof, methods and results of Company research, technical or financial information, terms of the Employee’s employment and the employment of other Company employees or any other information attached to Company business or any other information connected to
Company clients), unless he has received the Company’s agreement in advance and in writing. Likewise, the Employee shall maintain in confidence any confidential information and shall refrain from making any use thereof during the course of the period of his employment with the Company or thereafter, unless for the purpose of the performance of his work, pursuant to the Employment Agreement.

 

11

 

	
  
	
2.
	
Confidential information shall be deemed any confidential information that I have delivered, intended for or on behalf of the Company and/or to which the Employee has been exposed, without considering the form thereof.

	
  
	
3.
	
The Employee agrees that any confidential information, including the sellers, books, charts, reports, records, formulas, sketches, lists and any other document that was prepared, collected, processed, received, held or found to be used by the Employee during the time of his employment with the Company, in connection with any phase of Company business or the commercial secrets thereof (“the
Materials”) shall be the sole property of the Company. And, the Employee shall transfer the Materials to the Company at the time of termination of the period of his employment or at any time prior thereto or otherwise pursuant to Company demand, without the Employee preserving any copies whatsoever of the aforesaid and without the Employee having any right of lien therein.

	
4.
	
Unfair Competition and Prohibited Solicitation

	
  
	
The Employee agrees that the provisions of this undertaking are reasonable and necessary for the purpose of the lawful protection of the confidential information of the Company, the property thereof (inclusive of intellectual property) and the good name and reputation thereof (hereinafter: “the Principal Assets
of the Company”). The Employee declares that he has carefully read the provisions of this undertaking, that he understands the consequences of this undertaking and agrees to the contents thereof and that he has assessed for himself the advantages and disadvantages involved in accepting the agreement in this undertaking. Accordingly, the Employee undertakes that:

 

12

 

	
  
	
4.1
	
In the course of his employment with the Company and for a period of ____ months following thereafter, the Employee shall not connect with, set up, develop or in any manner be involved, whether directly or indirectly, with any business, occupation, employment and/or any other activity likely, in a reasonable manner, to include or to be connected to his employment with the Company. And, for a period of months thereafter,
the Employee shall refrain from engaging in, participating in, by himself and/or as a partner, employee, consultant or shareholder (save for holding up to 3% of a public company’s issued share capital), directly and/or indirectly, and shall refrain from accepting any position, managerial or other, directly or indirectly, in any legal entity engaged in, directly and/or indirectly, inclusive of by way of subsidiaries and/or associated companies, a business competing directly or indirectly with the Company.

	
  
	
4.2
	
During the course of the period of his employment with the Company and for a period of 24 months thereafter, the Employee shall not solicit any employee whatsoever of the Company or of any of the subsidiaries thereof, parent companies thereof or associated companies thereof to cease his employment with that company.

5.             Ownership of Inventions

The Employee shall notify and deliver to the Company or anyone appointed on behalf thereof, any information, developments, inventions, formulas, procedures, techniques, knowledge and information, whether it is possible to register a patent or not, which was made or introduced as an idea or became practicable or that the Employee learned,
whether of his own accord or together with others, during the course of his employment with the Company and inclusive of after work hours, weekends or during the course of his vacation (any information, as aforesaid, developments, inventions, formulas, procedures, techniques, knowledge and information shall be defined hereinafter: “the Inventions” or “the
Invention”) and this forthwith upon the discovery thereof, the receipt thereof or the invention thereof, as the case may be. If the Employee is precluded from delivering the invention at the time of the provision of notice of the invention for any reason whatsoever, the Employee shall notify the Company of the invention and specify in the notice the date whereon the invention shall be delivered to the Employer and the reason for the failure to deliver the invention forthwith. Subsequently, the invention
shall be delivered as quickly as possible.

 

13

 

Provision of notice and delivery of the inventions shall be made in writing, together with a detailed description of the invention and suitable documentation. The Employee agrees that all inventions shall be the exclusive property of the Company and the Company shall be the sole owner of all patents and other rights connected to the inventions,
as aforesaid. The Employee hereby assigns all his current and future rights to the inventions to the Company, as aforesaid. For the avoidance of doubt, it is hereby clarified that the absence of a contrary response on behalf of the Company in relation to the notice with respect to the invention or with respect to the delivery thereof shall not be construed as a waiver of ownership of the invention. And, in any event, the invention shall be the property solely of the Company.

The Employee agrees in connection with all the inventions mentioned above to assist the Company or any person appointed on behalf thereof in any suitable manner to receive and, from time to time, to perform any act, inclusive of the application and registration of the inventions in any manner, including the registration of patents in respect
of the inventions, as aforesaid, in any country whatsoever, and to sign any documents required to submit and obtain a patent for the inventions, as aforesaid, and the application thereof, as the Company shall desire, including letters of assignment of inventions, as aforesaid, to the Company or persons or entities appointed thereby.

The Employee declares and authorizes that the remuneration owing to him, pursuant to this agreement, is reasonable. And he shall not be entitled with respect to anything connected to the aforesaid to any financial or other remuneration, apart from that which is specified in Appendix
A to this employment agreement or apart from the contents of any other particular agreement or arrangement on this subject, made in writing and signed by the Company. With reference to anything pertaining to the aforesaid, there shall be no validity to any arrangement, communication or agreement, made verbally or made in writing, without it being duly signed by the Company.

 

14

 

6.             General

The Employee agrees that the provisions of this undertaking, which constitute an integral part of the terms of his employment, are reasonable and necessary for the protection of the legitimate interests of the Company in connection to the subject of this undertaking.

If any legal instance whatsoever determines that any provision whatsoever of this undertaking (inclusive of any sentence, section or part thereof) is not valid or is unenforceable, then the provisions, as aforesaid, shall be deemed as amended so that the parts determined, as aforesaid, as invalid or unenforceable are deleted therefrom.
Such deletion, as aforesaid, shall apply solely in relation to the duties and demands mentioned in a provision, as aforesaid, in the area of jurisdiction wherein the decision was given, as aforesaid. In addition, if it is determined that a particular provision included in this undertaking is too broad with respect to the time periods mentioned herein, the extent of location, activity or subject, it shall be construed so that the provision, as aforesaid, is limited and constrained in connection with the feature,
as aforesaid, so that the provision shall be enforceable to the furthest extent possible apposite to the law, which applies, as it is at that time and in a manner that the damage to the Company, insofar as there is such, shall be constrained as far as possible.

The provisions of this undertaking shall remain in full force also following the termination of the period of employment for any reason whatsoever between the Company and the Employee. This undertaking shall not serve in any manner whatsoever to derogate from undertakings and liabilities of the Employee pursuant to any law.

I.D.:                               64818131

Signature:                    /s/Yaakov Bal

Date:                             July 14, 2009

  

15

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