Incredimail 2012 Annual Report Download - page 21

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 under the laws of the State of Israel. Service of process upon us, our Israeli subsidiaries, our directors and officers
and the Israeli experts, if any, named in this annual report, substantially all of whom reside outside the United States, may be difficult to obtain
within the United States.
Furthermore, because the majority of our assets and investments, and substantially all of our directors, officers and such Israeli experts
are located outside the United States, any judgment obtained in the United States against us or any of them may be difficult to collect within the
United States.
We have been informed by our legal counsel in Israel that it may also be difficult to assert U.S. securities law claims in original actions
instituted in Israel. Israeli courts may refuse to hear a claim based on an alleged violation of U.S. securities laws reasoning that Israel is not the
most appropriate forum to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not
U.S. law is applicable to the claim. There is little binding case law in Israel addressing these matters. If U.S. law is found to be applicable, the
content of applicable U.S. law must be proved as a fact, which can be a time-
consuming and costly process. Certain matters of procedure will
also be governed by Israeli law.
Subject to specified time limitations and legal procedures, under the rules of private international law currently prevailing in Israel,
Israeli courts may enforce a U.S. judgment in a civil matter, including a judgment based upon the civil liability provisions of the U.S. securities
laws, as well as a monetary or compensatory judgment in a non-civil matter, provided that the following key conditions are met:
• subject to limited exceptions, the judgment is final and non-appealable;
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