Incredimail 2011 Annual Report Download - page 19

Our operations may be disrupted by the obligations of our personnel to perform military service.
All non-
exempt male adult citizens and permanent residents of Israel under the age of 40, or older for reserves officers or citizens with certain occupations, as
well as certain female adult citizens and permanent residents of Israel, are obligated to perform military reserve duty and may be called to active duty under
emergency circumstances. In recent years, there have been significant call-ups of military reservists, and it is possible that there will be additional call-
ups in the
future. Many of our male employees in Israel, including members of senior management, are obligated to perform up to 36 days of military reserve duty annually until
they reach the relevant age of discharge from army service and, in the event of a military conflict, could be called to active duty. While we have operated effectively
despite these conditions in the past, we cannot assess what impact these conditions may have in the future, particularly if emergency circumstances arise. Our
operations could be disrupted by the absence of a significant number of our employees related to military service or the absence for extended periods of military
service of one or more of our executive officers or key employees. Any disruption in our operations would harm our business.
Investors and our shareholders generally may have difficulties enforcing a U.S. judgment against us, our executive officers and our directors or asserting
U.S. securities laws claims in Israel.
We are incorporated in Israel and most of our executive officers and most of our directors reside outside the United States. Service of process upon them may
be difficult to effect within the United States. Furthermore, most of our assets and most of the assets of our executive officers and directors are located outside the
United States. Therefore, a judgment obtained against us or any of them in the United States, including one based on the civil liability provisions of the U.S. federal
securities laws may not be collectible in the United States and may not be enforced by an Israeli court. It also may be difficult for you to assert U.S. securities law
claims in original actions instituted in Israel. However, subject to certain time limitations, Israeli courts may enforce U.S. final executory judgments for liquidated
amounts in civil matters obtained after due trial before a court of competent jurisdiction (according to the rules of private international law currently prevailing in
Israel) which enforces similar Israeli judgments, provided that the requisite procedural and legal requirements are adhered to. If a foreign judgment is enforced by an
Israeli court, it generally will be payable in NIS, which can then be converted into foreign currency at the rate of exchange of such foreign currency on the date of
payment. Pending collection, the amount of the judgment of an Israeli court stated in NIS (without any linkage to a foreign currency) ordinarily will be linked to the
Israeli consumer price index plus interest at the annual statutory rate prevailing at such time. Judgment creditors bear the risk of unfavorable exchange rates.
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