Appendix A to my Employment Agreement with DPS Ltd
Exhibit 10.45
To: Eli Fogel
Re: Your Employment at DSP Ltd
We are pleased to offer you a position at DSP Ltd (hereinafter: the Company) in accordance with the following Employment Terms:
1. | Job Description |
Your position at the Company will be Senior V.P & C.T.O.
2. | Employment Terms |
a. | Salary |
1. | In consideration for your work at the Company, the Company will pay you the gross sum of NIS 55,000 (fifty five thousand) per month (hereinafter: the Salary). |
2. | The Company will duly withhold tax from your salary, pursuant to the Income Tax Regulations, as well as health tax and National Insurance Institute payments. |
b. | Directors Insurance |
1. | The Company will allocate amounts from your salary for the pension fund or provident fund or Directors Insurance, at your discretion, as specified in Section 2a1 above, according to the following details: |
8.33% of the salary on account of severance pay at the Companys expense
5% of the salary on account of benefits at the Companys expense
5% of the salary on account of benefits at your expense
Disability Income Insurance up to 2.5% at the Companys expense
2. | The companys allocations for Directors Insurance as stated in sub-section a above are in lieu of every other obligation to remit severance pay/pension fund allocations, etc. |
3. | Your agreement to Section a exempts the Company from having to obtain the Labor Ministers approval according to Section 14 of the Severance Pay Law, but should the need to obtain such permission arise, your signature on this Agreement will empower the Company to act on your behalf in order to obtain said permission. |
4. | If, in the future, the Company is required by law and/or expansion order applicable to the entire economy to allocate sums for an arrangement or comprehensive pension fund, this allocation will be intended for the fund or the applicable new arrangement, in lieu of the arrangement in this Agreement, and the Company will not be able to withdraw sums on account of the deposits made into the previous arrangement, but rather subject to the regulations of the fund and/or other appropriate fund. |
c. | In-service Training Fund |
During your period of employment at the Company, it will allocate sums to a professional development fund. These allocations will be calculated at the rate of 7.5% of your salary on the Companys account and 2.5% of the salary on the employees account, without any ceiling.
d. | Vehicle |
2. | The Company will provide you with a company vehicle (hereinafter: the Vehicle) as of the date of your employment. |
3. | The Company will pay all the Vehicle expenses except the car use value fee, which will be deducted from your monthly salary. |
e. | Annual Vacation |
4. | During your employment period, you will be entitled to an annual vacation of 23 (twenty-three days). You will coordinate the time of your departure for said vacation with your superior. |
5. | Accumulation of vacation days for a duration exceeding the total vacation days due for two contractual years will not be allowed. |
f. | Sickness |
6. | You are entitled to 30 (thirty) days sick leave per year, with the possibility of accumulating 3 (three) years sick leave, i.e. 90 (ninety) days. |
7. | Payment for sick leave will be remitted from the first day against submission of a doctors note. |
8. | Accumulated sick leave may not be redeemed for cash. |
g. | Reserve Duty |
9. | Before taking time off for reserve duty, you must notify the Company upon receipt of your reserve duty order. |
10. | The salary for the reserve duty period will be paid to you in full, as stated above in this Agreement, subject to submission of an appropriate document verifying your active reserve duty. |
h. | Your Eligibility for the Companys Employee Option Plan |
The companys management will recommend that the DSP Groups Board of Directors grant you options to acquire 120,000 DSP Group shares, subject to the terms of the DSP employee stock/option plan.
In order to dispel any manner of doubt, it is hereby clarified that, in any case, approval to grant the aforementioned options is subject to approval by the Companys Board of Directors, as specified in the Company Procedures.
i. | Bonus |
It is customary to allocate bonuses to some Company employees. When management-level discussions are held, your eligibility to receive a bonus will also be considered.
3. | The Contractual Period and its Termination |
a. | This Agreement is valid as of the day it is signed by the parties to it. The contractual arrangement is for a period that is undetermined in advance. The beginning date of your employment at the Company has hereby been determined as July 1st, 2003. Initially, you will work in the Company part-time (50%); you will switch to full-time work as soon as possible within the first 90 days of your employment in the Company. |
b. | Each party will be entitled to terminate the contractual arrangement by informing the other party in writing 2 (two) months in advance. The Company reserves the right to refrain from exploiting the notification period and/or from terminating your employment immediately. In this case, you will be paid an early notification fee equal to your salary for the aforesaid period, based on your last known salary. |
c. | The Company will be entitled to terminate your employment without prior notification in the following cases: |
d. | You have committed a work-related criminal offense and/or an infamous offense. |
e. | You have violated your duty of fidelity to the Company and/or committed an act constituting a conflict of interest. |
f. | You have violated your obligation to maintain confidentiality and non-competition as specified below in this Agreement and its appendices. |
g. | You have maliciously harmed the Company or caused it damage in consequence of an act of gross negligence. |
4. | Transfer of Allocations and Severance Pay |
If you are dismissed for a reason other than one of the reasons specified below, the Company will transfer to you all the allocations that you have accumulated in your name in the Directors Insurance Policy and/or the fund (hereinafter: the Allocations).
The following is a list of the reasons that will negate the transfer of the allocations in your name:
a. | The Company has dismissed you under circumstances entitling it to legally dismiss you without severance pay. |
b. | You have violated your fiduciary duty and/or non-competition obligation and/or duty of confidentiality toward the Company, under this Agreement, and without derogating from the generality of the aforementioned violation of the Confidentiality and Non-competition Agreement attached as Appendix A to this Agreement and which constitutes an integral part thereof. |
c. | You have committed a criminal offense and/or infamous offense. |
d. | You have stopped working at the Company without giving the required advance notification specified in Section 3b above. |
e. | You have stopped working at the Company without transferring your job, as specified in Section 7 below. |
It is hereby clarified that your transfer from the employment framework of the Company to that of a new company that is established if established as part of the Company and your employment at such a company, will not constitute termination of your employment or your resignation and/or dismissal from the Company, for the purpose of transferring the various allocations, including severance pay, yet without derogating from the generality of the aforementioned.
5. | Working Hours |
a. | The customary working hours at the Company are 44 hours a week, and the customary weekdays are Sunday through Thursday. |
b. | As your position is among those requiring a special degree of personal trust, as defined in the Working Hours and Rest Law, 5711 1951, you will not be subject to the provisions of this law. From time to time, the requirements of your position will necessitate your working beyond the customary hours and on Fridays. In these cases, you will not be paid for overtime. |
6. | The Duty of Fidelity and Avoidance of Conflicts of Interest |
a. | You hereby undertake to carry out your job with dedication and fidelity; to use all your skills, knowledge and experience for the Companys benefit and advancement, at the highest, most efficient level and as the Company sees fit. In addition, you hereby undertake to act according to the Companys instructions regarding everything related to the work performance, work arrangements, discipline and conduct put into effect from time to time. |
b. | Once you begin working full time for the Company specified in Section 3a above, i.e. beginning on July 1st, 2003, you will not work at any other job and/or occupation as a salaried employee and/or consultant and/or self-employed individual be it directly and/or indirectly, unless you have the Companys advance written approval to do so. In any case, you will not work in any capacity if said job conflicts with the Companys interests. |
c. | Throughout the Agreement Period, you will not receive any payment or other benefit from any third party, be it directly or indirectly related to your job. It is hereby clarified that a violation of this provision constitutes a violation of a fundamental condition of this Agreement, and, in addition, the aforesaid sum or benefit received by you will belong to the Company, which will be entitled to deduct the said sum or the value of the benefit from all the sums due you from the Company. |
d. | You will not carry out any action that constitutes harm to your fidelity to the Company and/or is liable to place you in a position of conflict of interest vis-à-vis the Company. You hereby undertake to immediately inform the Company of any matter or issue in which you have a personal stake and/or any other action that is liable to place you in the aforesaid position. |
e. | Commencement of your employment pursuant to this Agreement is conditional upon your signature on the Confidentiality and non-Competition Agreement attached to this Agreement as Appendix A, and constitutes an integral part thereof. |
f. | You hereby undertake to inform the Companys CEO of any business opportunity related in any way to the information specified in Appendix A. You undertake to refrain from designating yourself or any other person for such an opportunity, be it directly or indirectly, unless the CEO has given his advance written approval for same. |
7. | Transferring the Position |
In the case of termination of your job, and/or expiration of this Agreement for any reason whatsoever, you undertake to transfer your position and without derogating from the generality of the aforesaid and all the matters you handle and/or any information whatsoever in your possession and which relates in any way to your job at the Company. Said transfer will be performed in an orderly and full manner, and include disclosure of any important detail regarding the Companys dealings. You further undertake to transfer to the Company all the documents, information, material, equipment, and the like, which you have received and/or prepared in relation to your job at the Company, up to termination of your job at the Company; said transfer will be performed in an orderly and full manner.
8. | Declaration of Confidentiality |
You undertake to maintain confidentiality, both during and after your employment at the Company, as specified in the Pledge to Maintain Confidentiality attached to this Agreement as Appendix A, which constitutes an integral part thereof.
9. | Patents, Inventions and Trade Secrets |
a. | The copyrights on any invention and/or patent and/or trade secret and/or professional secret and/or innovation whatsoever conceived by you and/or by any of the Companys employees subordinate to you during your Period of Employment at the Company will be the sole property of the Company. |
The Company will be entitled to protect an aforesaid invention and/or patent and/or trade secret by duly registering same or by performing any other action, be it in Israel or anywhere else.
It is hereby clarified that you will not be entitled to register the invention and/or patent and/or trade secret, or take any action related to them, except actions that are required for registration or exploitation of the aforementioned by or on behalf of the Company.
b. | You undertake to inform the Company, in writing, of any invention and/or patent and/or trade secret conceived by you and/or by any of the Companys employees subordinate to you, once you become aware of same. |
c. | The aforesaid in this section is supplementary to Appendix A of this Agreement. |
On the occasion of signing this personal employment contract, we welcome you to the Company and wish you the utmost satisfaction from your job.
We hope this will mark the beginning of many years of cooperation between us for your own personal benefit as well as that of the Company.
Sincerely yours,
Leah Sadeh
VP Human Resources
I have read this letter carefully and hereby consent to its contents.
I know that the salary conditions I have been offered, and those that will prevail during my employment, are personal, and that this letter constitutes a personal, unique employment contract that formalizes my relationship with the Company; therefore, I hereby confirm my knowledge of the fact that I will not be subject to the provisions of any other agreements, including collective-bargaining agreements, between the Company and its employees as long as this Agreement is valid, and I hereby undertake to maintain the confidentiality of said conditions.
/s/ Eli Fogel | June 26, 2003 | |
Signature | Date | |
ID No. | ||
Eli Fogel | ||
Name |
Appendix A to my Employment Agreement with DPS Ltd
Pledge of Confidentiality
Whereas | I hereby request to be employed at DPS Ltd (Private Company No. 511354722) (hereinafter: the Company); | |
and whereas | the Company has clarified to me the importance it attaches to the obligations specified in this document below, including everything related to the maintenance of confidentiality and non-competition (hereinafter: the Obligations); | |
and whereas | the Company has conditioned my employment at the Company on my pledge to fulfill them; | |
and whereas | company for the matter of this obligation includes also the American parent company, D.S.P. Group, Inc. (hereinafter: the American Company), the subsidiaries of Voice Com and Voice Pump, and the subsidiary of the American company, RF Sub, Inc.; | |
and whereas | I know that the Company took said obligations into account when it determined my salary and eligibility for employee options (hereinafter; the Employment Terms) | |
and whereas | I have given my full consent to the limitations stemming from the obligations, after having understood their meaning, examined their scope and weighed the consideration for them; | |
and whereas | the Employment Terms agreed to between myself and the Company constitute, from my viewpoint, proper consideration for the obligations; | |
and whereas | I hereby take the obligations upon myself; | |
and whereas | I hereby undertake to fulfill the obligations that I have assumed; | |
and whereas | I know that, on the basis of the aforementioned, the Company has consented to employ me; |
therefore, I hereby declare and undertake the following:
1. | The preamble to this document constitutes an integral part thereof. |
2. | Confidentiality |
2.1 | I hereby undertake to maintain full and total confidentiality regarding everything directly or indirectly related to the Company and its business, including professional and/or commercial information related to the Company and/or its customers and/or bodies and people with whom the Company deals; inclusive of the aforesaid, I hereby undertake, both |
regarding Israel and any other place outside of Israel, not to reveal or make available to others any information whatsoever related to same in any form whatsoever, be it directly and/or indirectly, except information in the public domain (hereinafter: the Confidential Information), and not to use said Confidential Information for my own personal needs or for the purpose of deriving any benefit for myself or for others, be it during my employment period at the Company or during any other subsequent period, when the Confidential Information is passed or revealed to me in consequence of my employment or during my aforesaid employment, be it by the Company, directly or indirectly, through hearing, sight or reading, including from third parties with whom the company deals, as well as when the Confidential Information is the product of an idea or self-development during my employment period or in consequence of my aforesaid employment, except for the purpose of carrying out my job during my employment period at the Company. |
In this Agreement the Confidential Information, including technical and commercial know-how and data (whether written or verbal), drafts, documents (reports, papers and records, assignation requests), descriptions, plans, software, hardware, trade secrets, including information related to the Companys customers, suppliers and business partners and/or to the Companys production or marketing system or which concerns the relations of the Company and/or its associated companies, control, are controlled, or are potentially or actually affiliated with any third parties whatsoever, including customers, suppliers, banking institutions, governmental institutions, and private, quasi-public or public entities of any type as well as any business, financial, commercial know-how, financial statements and balances before their publication, and any internal information whatsoever that can affect the value of the Companys shares, formulae, data, plans, patents, inventions, discoveries, innovations, improvements, research, methods of any kind, progress in scientific, technical, economic, commercial or other developments, patent application letters, prototypes, samples, pictures, descriptions, blueprints, sketches, sun prints, booklets, models and specification documents, lists, documentation, source and object codes, tapes, discs and other storage means, letters, records, record booklets, reports and flow charts, as well as information related to the Companys current business and/or business that the Company is going to conduct (as it will develop and as is described by the Company in its development plan booklet and business plans or in any other informational material on behalf of the Company) sales reports, short- and long-term policy covering Company-related, products, product features, marketing methods, customer lists, price lists, discounts, supplier lists, business/commercial/financial contacts, economic calculations, including operating and product costs, and every other thing and matter that contains confidential information or which is liable to serve as a source of confidential information, including any information of commercial, technical and non-technical value, written and unwritten, data, set of lists, models, specification documents, source and destination codes, processes, algorithms, computer magnetic tape, discs and other storage means that are tantamount to intellectual property or confidential
material of the Company or of any of its predecessors or of its associated companies, in whole or in part, and particularly including, without limitation, computer hardware, computer programmers plans and applications, price matters marketing information, as well as inventions that are not limited according to the definition of an invention as it is stipulated in the applicable Israeli or US patent laws, and each improvement or adaptation of the said information was planned, developed or obtained by me or for the Company, directly or indirectly, provided that it is not information and/or an available product that is in the public domain or can be purchased freely from an independent third party, and everything in relation to any matter related to the Companys business and/or customers or which stems therefrom or is related in any way whatsoever, provided that is not in the public domain.
2.2 | Without derogating from the generality of the aforesaid in Section 2.1 above, I hereby undertake not to reveal and/or transfer and/or sell be it for consideration or not for consideration and/or to cause the exposure of the Confidential Information, directly or indirectly, and to take all the measures to maintain the confidentiality of the information and prevent said information from reaching any third party whatsoever, person, body or corporation, other than my superiors at the Company or in accordance with their instructions for the purpose of fulfilling my duty as an employee of the Company. |
2.3 | I hereby undertake not to make any use of the information, in whole or in part, for my own needs or for other needs, directly or indirectly, other than for the purpose of performing my tasks as an employee of the Company in accordance with the instructions given by my superiors, and not to make copies of the information in any manner whatsoever or in any form whatsoever, except in accordance with instructions given by the Company or by anyone authorized to do so on its behalf. |
2.4 | I hereby undertake not to take any materials whatsoever that relate to information or products, or any equipment from the Company without obtaining the advance express written consent of: (1) the Companys president or CEO, or (2) a person who has been authorized to do so, in writing, by the Companys president or CEO. |
2.5 | I know that my failure to safeguard any confidential information and/or my performance of an act construed as jeopardizing the security of the Confidential Information will, for the matter of this document, be tantamount to passing on the Confidential Information without the Companys consent, as stated above. |
2.6 | Without derogating from the statements above and below, I know that I do not, and will not, have any proprietary rights in the Confidential Information defined in this document. |
2.6.1 | I hereby undertake to inform the Company and/or those who come in its stead and/or its assignees of any inventions revealed |
to me during my Employment Period at the Company and/or in consequence of my work at the Company, and are related to the Companys business and/or to the information, and I hereby assign every interest I have, or will have, in said inventions for the benefit of the Company and/or those who come in its stead and/or its assignees, without receiving any additional consideration for said assignation, provided that I will not be required to bear any expenses whatsoever for the aforesaid assignation. |
If I create an invention that is registered as a patent either during my Employment Period at the Company or in consequence of my work at the Company, the Company will register my name on the patent documents as the inventor, provided that the Company is convinced beyond all doubt that the invention was indeed created by me, and that said registration does not constitute an infringement upon the proprietary and/or other rights of the Company and/or those who come in its stead and/or its assignees, in said invention and/or patent specified above.
2.6.2 | I hereby undertake that, as long as I am required to do so, including during the period following termination of my employment for any reason whatsoever, I will sign every document that the Company deems necessary for the submission of an application for a patent or copyrights in accordance with the laws of Israel, the US and/or any foreign country in order to protect the Companys interest in the aforesaid invention. |
2.6.3 | I hereby declare that, apart from the contents of Section 2.6.4 below, I possess no interest in any patent or patent application whatsoever, and not even in material subject to the copyrights, patents and patent applications currently belonging to me. |
2.6.4 | Existing patents and/or pending patent applications, and/or research activities at the stage of patent registration submission: |
US 60/404,931, CELLULAR HOME BASE
2.7 | I know that disclosure of the information and/or any part thereof to any third party whatsoever is liable to cause the Company severe damage, and I hereby undertake that I will not, in any way, perform an action involving a transfer and/or sale of the information and/or the products developed by the Company and/or existing products and/or which have been developed either by myself, in cooperation with others including customers of the Company or in cooperation with any third party whatsoever, to customers of the Company or to others. |
2.8 | I declare my understanding that the nature of the Companys business is such that, by entering into contractual arrangements with third parties, it undertakes and/or is likely to undertake confidentiality obligations that also apply to its employees, and non-fulfillment of the aforesaid obligations will constitute, among other things, a contract violation between the Company and the third party. I hereby undertake, therefore, to fulfill all said obligations as stipulated between the Company and the third party, as stated above. |
2.9 | I hereby undertake not to directly or indirectly damage the Companys reputation of and/or its status among its actual and potential customers. |
I hereby undertake to safeguard the confidentiality of information related to all the financial aspects of the Companys activity, including relations with banking institutions and the customs and tax authorities, and the Companys liabilities and rights vis-à-vis third parties. Furthermore, I will safeguard the confidentiality of the information that comes into my hands and is related to entities such as the investment center, the Chief Scientist, the Companys accountants and legal advisors, and the like.
2.10 | In order to dispel any manner of doubt, it is hereby stressed that my obligations as stated above will be in effect both during my Employment Period at the Company and following termination of my employment at the Company for any reason whatsoever, and will also obligate my legal representatives, without time limitations. |
2.11 | I hereby agree that each document I have prepared and/or information I have obtained for the purpose of performing my job at the Company and/or work during my Employment Period at the Company is the Companys property that will be transferred to the Company immediately following my employment as specified below. Furthermore, I hereby undertake to return to the Company all information be it in written or any other form that is or will be in my possession at any time, and I will do so immediately following conclusion of my employment for any reason whatsoever, or immediately on demand by the Company at any time. |
3. | I again hereby declare that I know that that the obligations in this document are especially important to the Company and constituted a precondition to my employment and were taken into account when the Company determined the Employment Terms, and that I fully consented to the limitations stemming therefrom after having understood their meaning, examined their scope, and weighed the consideration for them; therefore, I know that any violation of the obligations I have taken upon myself will grant the Company all the legal rights and remedies. |
June 26, 2003 Date | /s/ Eli Fogel Employees Signature |