Incredimail 2012 Annual Report Download - page 167

ISRAELI SHARE OPTION PLAN
5.2
The grant of Approved 102 Options shall be made under this ISOP adopted by the Board as described in Section 15 below, and
shall be conditioned upon the approval of this ISOP by the ITA.
5.3
Approved 102 Option may either be classified as Capital Gain Option (
“
CGO
”
)
or Ordinary Income Option (
“
OIO
”
).
5.4
Approved 102 Option elected and designated by the Company to qualify under the capital gain tax treatment in accordance
with the provisions of Section 102(b)(2) shall be referred to herein as
CGO
.
5.5
Approved 102 Option elected and designated by the Company to qualify under the ordinary income tax treatment in
accordance with the provisions of Section 102(b)(1) shall be referred to herein as
OIO
.
5.6 The Company’s election of the type of Approved 102 Options as CGI or OIO granted to Employees (the “
Election
”),
shall be
appropriately filed with the ITA in the framework of the request for the approval of this ISOP, which shall be submitted to ITA
at least 30 days prior to the Date of Grant of an Approved 102 Option. Such Election shall become effective beginning the
first Date of Grant of an Approved 102 Option under this ISOP and shall remain in effect until the end of the year following
the year during which the Company first granted Approved 102 Options. The Election shall obligate the Company to grant
only
the type of Approved 102 Option it has elected, and shall apply to all Optionees who were granted Approved 102 Options
during the period indicated herein, all in accordance with the provisions of Section 102(g) of the Ordinance. For the avoidance
of doubt, such Election shall not prevent the Company from granting Unapproved 102 Options simultaneously.
5.7
All Approved 102 Options must be held in trust by a Trustee, as described in Section 6 below
.
5.8
For the avoidance of doubt, the designation of Unapproved 102 Options and Approved 102 Options shall be subject to the
terms and conditions set forth in Section 102 of the Ordinance and the regulations promulgated thereunder.
5.9
The provisions of the ISOP and/or the Option Agreement shall be subject to the provisions of Section 102 and the Tax
Assessing Officer’
s permit, and the said provisions and permit shall be deemed an integral part of the ISOP and of the Option
Agreement. Any provision of Section 102 and/or the said permit which is necessary in order to receive and/or to keep any tax
benefit pursuant to Section 102, which is not expressly specified in the ISOP or the Option Agreement, shall be considered
binding upon the Company and the Optionees.
8