Incredimail 2012 Annual Report Download - page 178

ISRAELI SHARE OPTION PLAN
(a) Duration
. Each Option shall expire no later than ten (10) years from its date of grant. No ISO granted to an Optionee who
owns (directly or under the attribution rules of Section 424(d) of the Code) shares possessing more than ten percent of the total
combined voting power of all classes of shares of the Company or any Subsidiary shall expire later than five (5) years from its date of
grant.
(b) Purchase Price
. The Purchase Price of each Option shall be as specified by the Board or the Committee in its discretion;
provided, however, that the Purchase Price shall be at least 100 percent of the Fair Market Value of the Shares on the date on which the
Board or the Committee grants the Option, which shall be considered the date of grant of the Option for purposes of fixing the Purchase
Price; and provided, further, that the Purchase Price with respect to an ISO granted to an Optionee who at the time of grant owns
(directly or under the attribution rules of Section 424(d) of the Code) shares representing more than ten percent (10%) of the voting
power of all classes of shares of the Company or of any Subsidiary shall be at least 110 percent of the Fair Market Value of the Shares
on the date of grant of the ISO.
(c) Notice of ISO Stock Disposition
. The Optionee must notify the Company promptly in the event that the Optionee sells,
transfers, exchanges or otherwise disposes of any Shares issued upon exercise of an ISO before the later of (i) the second anniversary of
the date of grant of the ISO or (ii) the first anniversary of the date the shares were issued upon the Optionee’s exercise of the ISO.
(d) $100,000 Limit for ISOs.
The aggregate Fair Market Value (determined at the date of grant) of the Shares with respect to
which ISOs granted to an Optionee and any incentive stock options granted to such Optionee under any other stock option plan of the
Company, any Subsidiary or any predecessor corporation are exercisable for the first time by such Optionee during any calendar year
shall not exceed U.S. $100,000, or such other limit as may be prescribed by the Code.
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