EXHIBIT 10.26
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is entered into as of the 1st day of October
2000 between Xxxxxxx Xxxxxxx (the "Employee") and TTR Technologies Ltd., an
Israeli company (the "Company").
W I T N E S S E T H
WHEREAS, the Company is wishes to employ the Employee in accordance with
the terms and conditions of this Agreement, and the Employee wishes to be so
employed.
NOW THEREFORE, the parties hereto agree as follows:
1. Employment. With effect from the effective date (as defined in section 2),
the Company hereby engages Employee to serve as Vice President of
Administration. The Employee shall perform such duties, undertake such
responsibilities and exercise such authority as the Board of Directors or the
General Manager of the Company shall designate and shall report to the Chief
Executive Officer. 2. Duties. The Employee shall be primarily responsible for
the managing the day to day finances and operations of the Company, including:
- overseeing the bookkeeping and interfacing with the Company accountants,
- hiring and firing of employees and overseeing employee relations,
- administering all aspects of research and development.
2. Term.
2.1 Employee's employment under this Agreement shall commence as of
October 1, 2000 (the "Effective Date") and, unless otherwise provided, shall end
on the earlier of (i) the death or disability (as defined herein ) of the
Employee, (ii) termination of Employee's employment by Company with cause (as
defined herein); (iii) after three years from the Effective Date (the "initial
term"), (iv) termination of Employee's employment without cause by the Company
upon payment of the greater of the amount of salary due Employee from the date
of termination until the end of the then current term of this contract and one
year's salary (Severance Pay) or by Employee upon 90 days prior written notice.
At the Company's sole discretion Severance Pay will be paid in one lump sum or
in equal monthly installments until the longer of the end of the period of the
contract or one year. After the expiration of such initial term (other than for
reasons set forth in clauses (i), (ii) and (iv) this Agreement shall
automatically be renewed for additional three (3) year periods on the same terms
and conditions set forth herein (unless mutually agreed otherwise).
2.2 For the purpose of this paragraph 2, "disability" shall mean any
physical or mental illness or injury as a result of which Employee remains
absent from work for a period of two (2) successive months, or an aggregate of
two (2) months in any twelve (12) month period. Disability shall occur at the
end of any such period.
2.3 For the purpose of this paragraph 2, "cause" shall exist if Employee
(i) engages in willful misconduct or acts in bad faith with respect to the
Company, in connection with and related to the employment hereunder, (ii) is
convicted of a felony, provided that with respect to clauses (i) and (ii), if
Employee has cured any such condition within 15 days following delivery of the
advance notice, then "cause" shall be deemed not to exist.
3. Compensation
3.1 During the term hereof, and subject to the performance of the services
required to be performed hereunder by Employee, the Company shall pay to the
Employee for all services rendered hereunder, as salary, payable not less often
than once per month and in accordance with the Company's normal and reasonable
payroll practices, a monthly gross amount equal to U.S. $14,166 (the "Gross
Salary") payable in NIS (according to the representative rate of exchange at the
Company's bank on the date of payment) or US dollars, less required employee
deductions under law.
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3.2 The Company and the Employee will obtain and maintain Manager's
Insurance (Bituach Menahalim) under Israeli law for the benefit of the Employee
in the customary form in Israel. Each of the Company and the Employee shall
contribute toward the premiums payable in respect of such insurance those
amounts which would be recognized under applicable law, but in no event shall
such contributed amounts be more than thirteen and one third percent (13 1/3%)
of each monthly Gross Salary payment from the Company and five percent (5 %) of
such amount from the Employee. In Addition, the Company shall pay 2.5% of each
monthly Gross Salary payment for Disability Insurance in Israel. It is hereby
agreed that provided Employee is not terminated under section 2.3 (iii or iv),
he shall be entitled upon termination or expiration of this Agreement to the
amount paid by the Company (13 1/3%) hereunder, and to the extent available,
(and without derogating from section 2.1 above) such payment shall be in lieu
and in full and final substitution of any severance pay required under law.
3.3 The Company and the Employee shall maintain an advancement fund under
Israeli law (keren Heshtamlut) for exclusive benefit of the Employee. The
Company shall contribute to such fund an amount equal to 7-1/2% of each monthly
Gross Salary payment and the employee shall contribute to such fund an amount
equal to 2-1/2% of each monthly Gross Salary payment. The Employee hereby
instructs the Company to transfer to such advancement fund the amount of the
Employee's and the Company's contribution from each monthly Gross Salary
payment.
3.4 Company shall provide Employee with use of automobile which employee
shall choose at his sole discretion and Company shall pay for registration, gas,
maintenance and insurance; and shall provide the Employee with a cell phone and
pay for its maintenance and use.
4. Vacation. The Employee shall be entitled to 22 working days of paid vacation
during each fiscal year that this Agreement is in effect to be taken at times as
agreed upon by the parties.
5. Development Rights. The Employee agrees and declares that all proprietary
information including but not limited to trade secrets, know-how, patents and
other rights in connection therewith developed by or with the contribution of
Employee's efforts during his employment with the Company shall be the sole
property of the Company. Upon the Company's request (whenever made), Employee
shall execute and assign to the Company all the rights in the proprietary
information.
6. Secrecy and Nondisclosure The Employee shall treat as secret and confidential
all of the processes, methods, formulas, procedures, techniques, software,
designs, know-how, data, and other information which are not of public knowledge
or record pertaining to the Company's business (existing, potential, and
future), including without limitation all business information relating to
customers and supplies and products of which the employee becomes aware during
and as a result of employment with the Company, and Employee shall not disclose,
use, publish, or in any other manner reveal, directly or indirectly, at any time
during and after the term of this Agreement, any such information detailed
herein.
7. Non-Competition & Poaching
7.1 During the term of this Agreement and for a term of one (1) year after
Employee ceases to be employed by the Company, Employee will not, directly or
indirectly, for his own account or as an employee, officer, director, partner,
joint venturer, shareholder, investor, consultant or otherwise (except as an
investor in a corporation whose stock is publicly traded and in which Employee
holds less than 5% of the outstanding shares) engage in or contribute his
knowledge to any work or activity that involves a product, process, service or
development which directly competes with the business of the Company, now or
hereafter existing.
7.2 Employee acknowledges that the restricted period of time and
geographical location specified under this Section 7 are reasonable, in view of
the nature of the business in which the Company is engaged and Employee's
knowledge of the Company's business and products. If such period of time or
geographical location should be determined to be unreasonable in any judicial
proceeding, then the period of time and area of restriction shall be reduced so
that this Agreement may be enforced in such area and during such period of time
as shall be determined to be reasonable by such judicial proceeding.
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7.3 The Employee shall not at any time during the period from the
termination of this Agreement or any extension hereof, to the expiry of six (6)
months, employ or attempt to employ or solicit or endeavor to entice away from
or discourage from being employed by the Company any person who is, or shall at
any time until the termination of this Agreement or any extension hereof, one of
the employees of the Company.
8. Miscellaneous
8.1 Employee Representations. The Employee represents and warrants to the
Company that the execution and delivery of this Agreement and the fulfillment of
the terms hereof (i) will not constitute a breach of any agreement or other
instrument to which he is party, (ii) does not require the consent of any
person, and (iii) shall not utilize during the term of his employment any
proprietary information of any third party, including prior employers of the
Employee.
8.2 Entire Agreement. This Agreement constitutes the entire understanding
and agreement between the parties and supersedes any and all prior discussions
and agreements and correspondence, and may not be amended or modified in any
respect except by a subsequent writing executed by both parties.
8.3 Notices. All notices or other communications required or desired to be
sent to either Party shall be in writing and shall be sent by hand or by
Registered or Certified mail, postage prepaid, return receipt requested, or sent
by telegram or facsimile to the address set forth in the Preamble to this
Agreement or to such other address as the recipient may designate by notice in
accordance with the provisions of this Clause. Any such notice shall have been
deemed to have been delivered if served by hand when delivered, if by Registered
or Certified Mail 48 hours after posting if within the same country or 14 days
if posted from another country, and by telex or facsimile transmission when
dispatched and receipt confirmed by recipient party.
8.4 Severability. Any term or provision of this Agreement which is found
by a court, tribunal or arbitration panel to be invalid or unenforceable shall
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms or provisions of this
Agreement or affecting the validity or enforceability of any of the other terms
or provisions of this Agreement. In the event that any term or provision of this
Agreement is found to be unenforceable or ineffective, then the reviewing court,
tribunal or arbitration panel may modify such term or provision to the extent
necessary to render it enforceable and the parties agree to be bound by and
perform this Agreement as modified.
8.5 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Israel..
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
signed by the date stated above.
TTR Technologies Ltd..
/s/ Xxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx
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Xxxxxxx Xxxxxxx
