Document:

exhibit_10-10.htm

Exhibit 10.10

 

Personal and Special Employment Agreement

 

made and signed in Rosh Pina on August 6, 2013

 

	
Between:

	
On Track Innovations Ltd. (Reg. No. 52-004286-2)

	  	  
	  	
A Public Company registered in Israel

	  	  
	  	
of Z.H.R. I.Z., Rosh Pina 12000

	  	  
	  	
(hereinafter: "the Company")

	  	  
	  	  	  	  
	
And between:

	
Shay Tomer (ID No. 034961284)

	  	  
	  	
61 Haerez St., Ramat Yishai

	  	  
	  	
(hereinafter: "the Employee")

	  	  

 

	
Whereas

	
Since April 24th 2007, the Employee has been employed by the Company as a Comptroller in the Company’s Finance Department and as of June 1st, 2013  (the “Effective Date”) the Employee has been promoted and appointed as Chief Financial Officer (“CFO”) of the Company (hereinafter “the Position”); and

 

	
Whereas

	
The Company wishes to continue to employ the Employee in the Position, under the terms and conditions set forth below in this agreement (“this Agreement”), which were  approved by  the Company’s Board of Directors (“the Board”) on July 20th, 2013, as required by law; and

 

	
Whereas

	
it was agreed that the Employee shall be employed by the Company in the Position while maintaining full continuity of his rights, including his rights to severance pay; and

 

	
Whereas

	
the Employee gave his consent to hold the Position and to perform the duties required in the Position, and he has declared that he has the ability, experience, qualifications and skills required for performing this position, and there is no legal or contractual hindrance or other hindrance preventing him from serving in this Position and from performing his duties as set forth in the provisions of this Agreement; and

 

	
Whereas

	
the parties wish to stipulate their mutual rights and obligations and the terms of the employment of the Employee in the Position in this Agreement, all as set forth and stipulated therein;

 

  

  

  

 

Therefore it was agreed, declared and stipulated between the parties as follows:

 

A.           Introduction

 

	
1.

	
The preamble of this Agreement and its appendices constitute an inseparable part thereof.

 

B.           The Position, Subordination and Powers

 

	
2.

	
Following the  approval of the terms of this Agreement by the Board as mentioned above, the Employee shall continue to perform his roles as CFO of the Company and its subsidiaries or affiliates from the Effective Date and thereafter.

 

	
3.

	
In the framework of his Position, the Employee shall be responsible, among others, for the Company’s Financial Department activities and any other duties imposed to him from time to time by the Company’s Chief Executive Officer (“CEO”) and/or the Board and related activities such role involved.

 

	
4.

	
In performing the Position the Employee shall be subject to the Company’s CEO, and he shall act in accordance with the instructions and policies as shall be determined from time to time by the CEO and/or the Board.

 

	
5.

	
Without derogating from the provisions in this Agreement, for the avoidance of any doubt, it is clarified and agreed that in the event that any task shall be imposed on the Employee which could create a contact with another Company's subsidiary, or a company connected to the Company (hereinafter jointly referred to as: "the Affiliated Companies"), then this task will not create any employer-employee relationship between him and any of the Affiliated Companies.

 

	
6.

	
In the framework of the Employee's duties, he shall have all the powers required for performing the Position.

 

	
7.

	
The Employee shall work five days a week, from Sunday to Thursday. Notwithstanding the aforesaid it is clarified and agreed that the Employee could be required by virtue of his Position and if necessary for his work, to work also on weekends including on Saturdays and on holidays, and he gives his consent to the aforesaid.

 

	
8.

	
In light of his senior position which requires an increased extent of personal trust, it is agreed between the parties that the provisions of the Work and Rest Hours Law - 1951 shall not apply to his employment, and the Employee shall not be entitled to receive any additional payment or consideration for working beyond a regular working day and working hours.

 

  

2

  

 

	
9.

	
It is agreed that in determining the sum of the Employee's salary the parties have assumed that the Employee shall be required to work far beyond the routine working week in the Company.

 

C.           The Employee's Obligations

 

	
10.

	
The Employee undertakes to perform the duties and tasks that shall be imposed on him with appropriate faith and diligence and to the Company's benefit, avoiding any conflict of interests between personal and irrelevant interests, and the Company's interests.

 

	
11.

	
The Employee undertakes to lawfully work and act in accordance with the Company's rules and instructions and to dedicate his best efforts, time and abilities to fulfill the Position efficiently, skillfully and responsibly, all in accordance with the requirements of this agreement. He also undertakes not to engage in any other work or business, whether directly or indirectly, except for his work in the Company, either for salary or without, unless this is according to a written permit from the Company's CEO.

 

This permit is not required for culture, sport and lecturing activities, or for holding shares in other companies that are not in competition with the Company and/or the Subsidiaries, and in a case of potential competing companies the Employee holds no more than 1%.

 

	
12.

	
The Employee must act in accordance with the Company's instructions regarding security and business ethics, including not receiving any benefit from any party, as a result and/or with respect to his work and duties in the Company, to protect the information of the Company and to keep confidential any matter that is not within the public domain.

 

	
13.

	
The Employee undertakes to notify the Company’s CEO immediately and without any delay of any matter or issue and/or any of his activities in respect to which he has a personal interest in and/or that could create a conflict of interests with his duties in the Company.

 

D.           The Uniqueness of the Agreement

 

	
14.

	
The terms of employment of the Employee, in their entirety, are as defined in this Agreement and in it only, and the terms of any other agreement whatsoever shall not apply to the Employee, including any collective agreement or collective arrangement or any custom that applies, if applicable or that shall apply to any of the other employees of the Company.

 

	
15.

	
Any change in this agreement is contingent on it being in writing and signed by the parties.

 

	
16.

	
In order to avoid doubt, this Agreement comes instead and replaces any previous arrangement and/or agreement between the parties including prior agreements.

 

  

3

  

 

	
17.

	
However, and for the avoidance of any further doubt, it is agreed that the seniority of the Employee for the purpose of calculating his rights shall be as of the beginning of his employment on April 24th, 2007.

 

E.            The Consideration

 

	
18.

	
In consideration for performing his duties as set forth in this agreement, the Employee shall receive a salary, annual Bonus, options for shares and other benefits (severance pay, Employees' insurance, advanced education fund and refund of expenses etc.) as set forth hereafter.

 

	
19.

	
Except for the granting of options to the Employee, the terms of the Employee's employment by the Company are subject only to this agreement, and the Employee shall not be entitled to any payment or to any right with respect to his employment in the Company or the termination of his employment, unless it is expressly mentioned in this Agreement.

 

E.1          The Salary

 

	
20.

	
The Company shall pay the Employee as of the Effective Date and thereafter a gross monthly salary in the sum set forth in appendix A attached hereto (hereinafter" "the Salary"). The salary shall be paid to the Employee no later than the 9th day of each month in respect of the previous month. Payment shall be linked to the cost of living allowance in the economy in accordance with an expansion order that shall be announced and applicable to all employers and employees in Israel.

 

	
21.

	
The above salary shall constitute the basis for all allocations made on behalf of the Employee and in respect of his employment, to Employee's Insurance for redemption of accumulated vacation and any other social benefit in accordance with the law.

 

Notwithstanding the above, the Bonus defined hereafter and/or any other payment are not and shall not constitute a part of the salary of the Employee for all intents and purposes, and no allocations shall be made in respect thereof.

 

	
22.

	
Not later than the 31st of January each year, the CEO and/or the Board shall consider and set the Employee's salary for the following year.

 

E.2          Annual Bonus

 

	
23.

	
The Company shall have absolute discretion to pay the Employee an annual bonus (hereinafter: "the Bonus"). The Bonus shall be decided on an annually basis by the Company’s CEO, subject to the approval of the Board considering the Company’s Compensation Policy for Executive Officers and in accordance with the achievement of the Employee’s targets as determined on an annual basis from time to time by the Company’s CEO. The targets of the Employee will be determined by the Company’s CEO not later than the 31st January of each year with respect to the following year (however in the first year of this Agreement, the targets for the Bonus shall be set forth by September 30th, 2013).

 

  

4

  

 

In determining the Bonus as mentioned, Company’s CEO shall consider the Compensation Plan for Executive Officers of the Company, the Company's income and/or profitability insofar as far as this concerns the Employee.

 

The Bonus plan for the first year is set forth in appendix A of the agreement and is subject to changes from time to time.

 

	
24.

	
The gross Bonus for each year shall be paid to the Employee the following month after the publishing of the annual Financial Statements for the corresponding year. All taxes and levies on the Bonus shall be borne by the Employee.

 

	
25.

	
Notwithstanding the foregoing, according to the full discretion of the Company’s CEO, and subject to the cash flow of the Company and the financial results as shall be reflected in the quarterly statements of the Company, the Company may extend to the Employee an advance payment on account of a Bonus. Such an advance shall be offset from the then current and future annual Bonuses.

 

E.3          Option Package

 

	
26.

	
In order to encourage the long-term success of the Company, without derogating from the aforesaid in chapter E.2 above and subject to the approval of Company’s Compensation Committee and the Board, and the provisions of the law, the Company shall issue to the Employee an options package (hereinafter" "the Options Package") in accordance with the terms and mechanism set forth in appendix A of the agreement.

 

Without derogating the general provisions aforesaid or the set forth in Annex A, it is agreed that in the case of a merger and/or sale of the Company or its material assets, in whole or in part, with or to a third party (hereinafter: "the Sale Event") the vesting and exercise period set forth in Annex A shall be accelerated and the Employee shall be entitled to immediately exercise all his remaining non-vested options at its exercise price before or after the occurrence of the Sale Event, at the Employees Choice.

 

E.4          Vacation, Sick Days and Convalescence Pay

 

	
27.

	
The Employee shall be entitled to 24 work days of annual vacation for each year of his employment. The Employee shall be required to exploit at least 7 vacation days each year. The balance of vacation days may be accumulated, provided they do not exceed 100 days in total.

 

  

5

  

 

Any days in excess of the above cannot be accumulated and without derogating from the above, vacation days cannot be redeemed before the termination of the employment. Consequently days that have not been exploited and cannot be redeemed shall be lost.

 

	
28.

	
The Employee is entitled to sick days, and to payment in respect thereof in accordance with the provisions of the Sick Pay Law. The Employee is entitled to accrue up to 90 sick days at the most. Sick days that shall not be actually used are not redeemable.

 

Sick days for which disability insurance has been paid, shall be deducted from the sick days entitlement. However, the Company has paid in respect of such days the difference between the disability insurance and the payment entitlement in respect of such days, if any.

 

	
29.

	
The Employee shall be entitled to an annual 10 days payment of convalescence pay (“Dmei Havraa”) in accordance with the provisions of the expansion order in respect of convalescence pay as published by the Labor Authorities.

 

E.5          Employees' Insurance

 

	
30.

	
The Company shall continue to insure the Employee with his current Employees insurance policy in the Employee's name.  Each month the Company shall pay and/or deduct in respect of the above policy the following sums:

 

	
  

	
30.1.

	
An amount equal to 8 1/3 % of the salary shall be transferred by the Company on account of severance pay.

 

	
  

	
30.2.

	
An amount equal to 5% of the salary for pension shall be transferred by the Company in respect of pension (Provident Fund). An equal amount of 5% shall be deducted from the Employee's salary and transferred as the Employee's contribution to such fund.

 

	
31.

	
In addition, the Company shall insure the Employee with Employee's Insurance Policy's insurers for disability at a cost that shall not exceed 2.5% of his salary.

 

	
32.

	
The tax levied on the above Company's allocations to the Employee's insurance, if any, shall be borne by the Employee.

 

	
33.

	
Further to Section 30 - 32 above, the Company hereby forfeits any right it may have in the reimbursement of sums paid by Company into the above mentioned executive insurance policy, except in the event: (i) that employee withdraws such sums from the executive insurance policy, other than in the event of death, disability or retirement at the age of 60 or more; and/or (ii) of the occurrence of any of the events provided for in Sections 16 and 17 of the Severance Pay Law, 1963.

 

  

6

  

 

	
34.

	
It is further agreed that such payment contribution made by the Company towards the executive insurance policy as mentioned above, and any interest and/or profit accumulated thereto, shall be on account of severance payment due to Employee under any circumstances in which Employee shall be entitled to severance payment subject to the applicable law, including but not limited to the Severance Pay Law, 1963.

 

E.6          Provident Fund

 

	
35.

	
The Company shall continue to allocate payments to the Employee's current provident fund. 7.5% of the salary shall be allocated by the Company and 2.5% of the salary shall be deducted from the Employee's salary as his share in the payments. The tax owed with respect to the above payment to the Provident Fund shall be borne by the Employee.

 

	
36.

	
The Company shall release the Provident Fund upon termination of the employment hereunder, for any reason except for in the circumstances provided in section 46.2 hereafter.

 

E.7          Refund of Costs, Vehicle, Company, Meals, Mobile Telephone

 

	
37.

	
The Company shall reimburse the Employee all of the reasonable costs spent by him in the execution of his duties in accordance and subject to the reimbursement policy of costs adopted by the Company.

 

In the event that no such policy has yet been adopted, costs shall be refunded to the Employee within 10 days after the last day of the month for which they are refunded against receipts or other supporting documentation.

 

The reimbursement of costs (or the right thereto) cannot be converted or offset against a Bonus or other payment.

 

	
38.

	
Company Car. During the Term of the Employment, the Company shall place at the Employee's exclusive disposal a car for his use at the level detailed in Annex A hereto. All the expenses in connection with the maintenance and use of the said car shall be borne and paid by the Company, excluding fines. The Employee hereby undertakes to use the car that shall be placed at his disposal as aforesaid reasonably and properly qua an owner who cares for his property, and in the absence of another arrangement in writing between him and the Company he undertakes to return the said car to the Company immediately upon the termination of the Prior Notice Period. The Company shall gross up the value of the benefit to the Employee in placing the car at his disposal as aforesaid in the amount of the tax applicable to him is respect of the said benefit.

 

	
39.

	
The Employee shall be entitled to eat lunches at the Company's dinner-room or at restaurants with arrangement for Company’s employees. The tax in respect of that benefit shall be grossed up and paid by the Company.

 

  

7

  

 

	
40.

	
The Company shall provide the Employee with a mobile telephone (an extension of which shall be installed, if required, in the vehicle). The Company shall cover all the operating costs thereof and all taxes shall be grossed up and paid by the Company.

 

	
41.

	
For the sake of caution it is agreed and declared that all the grossed up payments for tax purposes include the entire sum of severance pay in respect to these payments. The parties to this agreement shall request the approval of the Minister of Labor for their agreement as mentioned according to section 28 of the Severance Pay Law – 1963.

 

F.            The Term of the Agreement and the Manner of its termination

 

	
42.

	
The continuance of the employment of the Employee is for an unspecified period (the: “Employment Period”).

 

	
43.

	
The Employment Period shall terminate within six (6) months of a Termination Notice (“Prior Notice Period”). Each party is entitled to give a termination notice at any time and for any reason or without any reason to the other party of its wish to terminate the employment and the employment hereunder shall terminate at the expiration of the Prior Notice Period.

 

	
44.

	
During the Prior Notice Period the Employee must continue to fulfill his Position and perform all of his duties according to this agreement and according to the Company's request to make a maximum effort to perform the full and organized transfer of his Position to his replacement.

 

	
45.

	
Notwithstanding the aforesaid, it is clarified and agreed that the Company shall be entitled at all times, according to its discretion to request the Employee to immediately terminate his Position (or within a shorter period than the Prior Notice Period) and in such case the employer-employee relationship shall end at the time stipulated in the Company's request and this is without derogating from the Employee's rights in accordance with this agreement and the law, to receive payment in lieu of the Prior Notice Period, severance pay and any other payments that are due to him, if at all, for the period of his employment in the Company and its termination.

 

	
46.

	
In the event of the termination of this agreement the following provisions shall apply:

 

	 	
46.1.

	
If the termination of employment was as a result of the Employee's dismissal (except for dismissal on the background of circumstances set forth in section 46.2 hereafter) or as a result of the Employee's resignation, or God forbid as a result of circumstances that prevent the continuation of the Employee's employment in the Company (including his death), the Employee shall be entitled (or his heirs respectively):

 

  

8

  

 

	 	
46.1.1.

	
To receive from the Company: a monthly salary in respect of the Prior Notice Period or the end of his employment period, whichever is later. However, if at the request of the Company, the employment terminated earlier, then the Employee shall receive for the months for which the employment during the Prior Notice Period was shortened, and this is when the Employee was requested to continue his work during the Prior Notice Period. Should the Employee, at the request of the Company, refrain from working during the part of the Prior Notice Period, the Company shall pay in respect of those months the payment in lieu of Prior Notice Period as per paragraph 45 hereinabove, and

 

	 	
46.1.2.

	
Subject to the provisions in chapter E.2 above, the Company shall pay the pro rata Bonus in respect of the proportional part of the year. The sum of the Bonus to which he is entitled (if any). Should the employment terminate (including the Prior Notice Period) before the end of the year, a pro rata Bonus in respect thereof; and

 

	 	
46.1.3.

	
To receive from the Company severance payments according to the applicable law, including but not limited to the Severance Pay Law, 1963, calculated based on the Employee’s last month salary prior the termination of employment, of which it will transferred to the Employee and into his name, the Employee's Insurance and the Provident Fund and to allow the Employee the use of Company's car including the payment of the expenses thereof until the end of the Prior Notice Period and/or the end of the Employment Period, whichever is the later;

 

	 	
46.1.4.

	
Compensation for non-compete – a one-time compensation sum against the Employee’s undertaking in chapter G hereafter "Secrecy and Non – Competition". Such compensation shall be in the sum equal to six (6) salaries as the salary is defined in chapter E.1 above. 50% of the above compensation shall be paid at the end of the employment and the remaining balance shall be deposited in trust with the Company's attorney with instructions to release it to the Employee 12 months after the end of his employment, provided that the Employee has fulfilled all of his undertakings, as set forth in the confidentiality and non–competition chapter hereafter. This payment shall be refunded to the Company if and when the non-compete and confidentiality undertaking has been breached in any way and the Company shall have the right to offset such a refund from any obligation and/or payment to which the Employee is entitled.

 

  

9

  

 

	 	
46.2.

	
It is agreed and declared that in the event of the Employee's dismissal as a result of a breach of trust or material breach of the Employee's confidentiality and non–competition undertakings as set forth in the confidentiality and non- competition chapter hereafter and in appendix B hereafter, or in the event of dismissal in circumstances that deny the Employee's right to severance pay in accordance with the law – the Employee shall not be entitled to receive a Prior Notice Period to his dismissal or payment in place of a Prior Notice Period, and he shall not be entitled to the payment of severance pay or any other payment that the Company is not required to pay, including any payment that is due to the Employee as a Bonus payment. In accordance with the law, the Company shall be entitled to offset the sum of the advance payments from any payment that is due to the Employee from the Company.

 

G.           Confidentiality and Non Competition

 

	
47.

	
The Employee shall sign the undertakings to maintain confidentiality set forth in appendix B which constitutes an integral part of this agreement.

 

	
48.

	
The Employee undertakes that during the employment period and for a period of 12 months after the termination of the employment agreement he shall refrain from being in direct or indirect contact with a customer of the Company or of the subsidiaries of the Company in any matter that relates to the Company's business or the businesses of its subsidiaries or affiliates unless it is with the specific approval of the Company; and or

 

	
  

	
48.1.

	
Being in direct or indirect contact with a customer of the Company or of the Subsidiaries or of the Affiliated companies (whether as an employee, consultant or any other way), in any matter that refers to the Company's business, the business of the Subsidiaries or of the Affiliated companies, unless it is within the framework of his employment in the Company.

 

	
  

	
48.2.

	
Engage, directly or indirectly, for any reason, in Israel or anywhere in the world, in any business, work or any other engagement in the field of contactless smart cards that compete with the Company's business, the business of the Subsidiaries or Affiliated companies, and/or

 

	
  

	
48.3.

	
Solicit the Company's employees or suppliers, the Subsidiaries' or Affiliated companies' employees or suppliers to any business association with him.

 

H.           Deductions and Taxes

 

	
49.

	
The payments and benefits of whatsoever description granted to the Employee pursuant to this agreement are subject to the deduction of income tax and other compulsory deductions which the Company has to deduct according to any law, and nothing stated in this Agreement shall be interpreted as imposing upon the Company the burden of paying tax or any other compulsory payment for which the Employee is liable, other than the value of the benefit of placing the car and mobile phone at the Employee's disposal and providing the Employee with meals, which shall be grossed up by the Company as provided in Section E.7 above.

 

  

10

  

 

I.             Waiver or Precedent

 

	
50.

	
No Waiver made by the Company (if any) shall constitute a precedent with respect to any other case, similar or otherwise, and no inference shall be made in respect thereof.  The Company shall be entitled to exercise any of its rights hereunder that have not been specifically waived in writing.

 

J.            Notices

 

	
51.

	
The parties' addresses set in  the preamble thereof would be the relevant address of this agreement and any notice sent to that address shall be considered as if received, within five days of its posting.

 

K.           The Law and Jurisdiction

 

	
52.

	
This agreement is governed by the Laws of the State of Israel, and the Labor Court shall have jurisdiction with respect to all matters concerning and/or arising thereof.

 

And in witness whereof the parties have signed

 

	 	/s/ Shay Tomer	  	
/s/ Ofer Tziperman / Arie G. Rubinstein 
CEO / General Counsel & Corporate Secretary

	  
	  	 Employee	  	
The Company

	  

 

  

11

  

 

ANNEX B

 

Confidentiality and Non Competition Undertaking

 

I, the undersigned, Shay Tomer (Id No. 034961284), hereby declare and undertake towards On Track Innovations Ltd. and any of its parent/controlling corporation, subsidiaries and/or affiliated entities (hereinafter collectively, the “Company”) as follows:

 

	
1.

	
In this Undertaking:

 

	
  

	
1.1.

	
the term “Confidential Information” means any and all information relating to the Company’s proprietary technology or business including, without limitation, information, data, know-how, formulas, concepts, tests, drawings, specifications, applications, designs and trade secrets, patents, know-how, technology data and all other information, design methodology, engineering and manufacturing processes and data and information related to Company’s products or their development, equipment, suppliers, sales, customers, potential customers, business operations and plans, financial situation, members, employees and investors.

 

	
  

	
1.2.

	
the term “Confidential Documents” means any documents containing Confidential Information, including without limitation: (i) any documents, notes, memoranda, summaries, analyses, paper works, sketches, designs, charts, specifications, prints, compilations, or any other writings relating to the Confidential Information, and any other materials embodied in drawings, floppy discs, tapes, CD ROM, software or in any other possible way containing or relating to the Confidential Information or any part thereof, whether or not prepared by the Company or on it’s behalf, (ii) all documents received, used, or that shall be received or used, by me in relation with my employment in the Company, and/or (iii) the contents of such Confidential Documents as stored in my memory.

 

	
  

	
1.3

	
the term "Competing Goods" means any goods sold in competition with the prescribed goods;

 

	
  

	
1.4

	
the term "Competing Services" means any services rendered in competition with the prescribed services;

 

	
  

	
1.5

	
the term "Prescribed Areas" means Israel or in any other part of the world in which the Company conducts its business;

 

	
  

	
1.6

	
the term "Prescribed Customers" means any person who is or was a customer of the Company at the termination date; or who is or was a customer of the Company at the termination date or who was a potential customer with which I had been engaged in negotiations with a view to doing business on behalf of the Company within the period of 6 (six) months preceding the termination date;

 

	
  

	
1.7

	
the term "Prescribed Goods" means any products sold by the Company in the ordinary course of business as at the termination date or which is then included in any strategic plan of the Company;

 

	
  

	
1.8

	
the term "Prescribed Services" means any services rendered by the Company in the ordinary course of business as at the termination date or which is then included in any strategic plan of the Company;

 

  

 

  

 

	
  

	
1.9

	
the term "Prescribed Suppliers" means any person who is or was a supplier of prescribed goods and/or prescribed services to the company at the termination date;  or is or was a supplier of prescribed goods and/or prescribed services to the company at the termination date with which I had been engaged in negotiations with a view to doing business on behalf of  the company within the period of 6 (six) months preceding the termination date;

 

	
  

	
1.10

	
the term “Restraint Period” means a period of 12 (twelve) months calculated from the termination date;

 

	
  

	
1.11

	
the term “Termination Date” means the date upon which my employment by the company ceases or is terminated for any reason whatsoever;

 

	
2.

	
I am fully aware that the Confidential Information and Confidential Documents are the  exclusive property of the Company, and that they were made or shall be made available to me and for my use solely for the purpose of my work as an employee of the Company.

 

	
3.

	
I undertake towards the Company as follows:

 

	
  

	
3.1.

	
to maintain as fully confidential all Confidential Information and Confidential Documents;

 

	
  

	
3.2.

	
not to disclose or divulge to any third party, or allow any third party access to any of the Confidential Information or Confidential Documents, or use any of thereof, whether directly or indirectly, save exclusively for the purposes of my work as an employee of the Company.

 

	
  

	
3.3.

	
not to misuse any of the Confidential Information or Confidential Documents, or any part  thereof, in a manner other than the usual use of the Confidential Information and Confidential Documents and for a purpose other than the purpose for which the Confidential Information and Confidential Documents were divulged to me.

 

	
  

	
3.4.

	
not to make public or divulge in any way the Confidential Information and Confidential Documents or any part  thereof.

 

	
  

	
3.5.

	
not to duplicate, copy, scan, or create in any other way copies of the Confidential Documents or any part thereof, except for the purpose for which the Confidential Information and Confidential Documents were divulged to me.

 

	
  

	
3.6.

	
Not not challenge the Company's intellectual property rights in any way, including without limitation, by filing to any court, patent or other authority, a claim, opposition or request for cancellation against such rights. The provisions of this Section 3.6 shall survive termination.

 

	
  

	
3.7.

	
upon demand from the Company, at any time whatsoever, to return to the Company the Confidential Information and Confidential Documents or any part thereof or copies thereof in any form whatsoever, and to, if so required, confirm in writing to the Company that all the Confidential Information and Confidential Documents or any copies thereof in any form whatsoever which had been in my possession have been returned to the Company, and that I did not retain any copies of it, including copies made by electronic forms.

 

  

B - 2

  

 

	
  

	
3.8.

	
not to remove from the Company’s premises or take for my use any of the Confidential Information and Confidential Documents without the Company’s prior written approval, unless if such removal is made strictly for the purposes of performing my undertakings towards the Company.

 

	
4.

	
I agree and accept that:

 

	
  

	
4.1.

	
The Company reserves all rights in any inventions, patents, copyrights, designs, and any other intellectual property invented or devised by it in relation to the Confidential Information and Confidential Documents.

 

	
  

	
4.2.

	
Any invention including any patent or patent application and any copyrights or any other intellectual property (the “IP”) invented or created by me during my employment with the Company or as a result of my employment with the Company, shall be the exclusive property of the Company, and I do not have and shall not have any demand or claim against the Company relating to the IP. I undertake to sign any document and to do any other act required in order to register the said rights in the name of the Company, or to prove the Company’s rights, if and to the extent that this is required in the opinion of the Company and/or the Company’s legal advisors.

 

	
  

	
4.3.

	
I shall not challenge the Company's IP in any way, including without limitation, by filing to any court, patent or other authority, a claim, opposition or request for cancellation against such  rights

 

	
5.

	
The restrictions of use and disclosure set forth in this undertaking shall not apply to any Confidential Information and Confidential Documents which after they were disclosed became, available to the general public, through no breach of a confidentiality undertaking towards the Company.

 

	
6.

	
It is recorded that in the course of his my duties I (i) have acquired and/or will acquire considerable know-how in and will learn of the Company's techniques relating to the business; (ii) will have access to names of customers with whom the Company does business whether embodied in written form or otherwise; (iii)will have the opportunity of forging personal links with customers of the company; and (iv) generally will have the opportunity of learning and acquiring the trade secrets, business connections and other confidential information appertaining to the Company's business.

 

I acknowledged that the only effective and reasonable manner in which the Company's rights in respect of its business secrets and customer connections can be protected is the restraint I am imposing upon myself as set forth hereunder. Therefor, in consideration of the Non Competition Payment, as set in my Employment Agreement, I hereby undertake that during the term of my employment with the Company and for the duration of the Restraint Period, whether as proprietor, partner, director, shareholder, member, employee, consultant, contractor, financier, agent, representative, assistant, trustee or beneficiary of a trust or otherwise and whether for reward or not, directly or indirectly, I shall not -

 

	
  

	
6.1

	
carry on or be interested or engaged in or concerned with or employed by any company, close corporation, firm, undertaking or concern which carries on, in the Prescribed Areas any business which sells Prescribed Goods and/or Competing Goods or renders Prescribed Services or Competing Services or in the course of which Prescribed Goods or Competing Goods are sold and/ or Prescribed Services or Competing Services are rendered;  provided that I shall not be deemed to have breached my undertaking by reason of my – (i) holding shares in the Company;  or (ii) holding shares in any company the shares of which do not in aggregate constitute more than 5% (five per cent) of any class of the issued share capital of such company and which are listed on a recognised stock exchange if the shares owned by me or by my relatives (as defined in the Israeli Companies Act 1999) which do not in the aggregate constitute more than 5% (five per cent) of any class of the issued share capital of such company.

 

  

B - 3

  

 

6.2

 

	
  

	
6.2.1

	
not to solicit, on my own account or for any other person, the services of, or endeavor to entice away from the Company any director, employee, consultant or a subcontractor of, or any other person related to the Company, who during the period of 12 months prior to such termination occupied a senior or managerial position in relation to the Company, and/or who was likely (in the opinion of the Company) to be: (i) in possession of Confidential Information; or (ii) able to influence the customers’ connections of the Company (whether or not such person would commit any breach of his contract of employment or engagement with the Company).

 

	
  

	
6.2.2

	
furnish any information or advice (whether oral or written) to any prescribed customer that I intend to or will, directly or indirectly, be interested or engaged in or concerned with or employed by any company, close corporation, firm, undertaking or concern carried on in any of the Prescribed Areas which sells Prescribed Goods and/or Competing Goods or renders Prescribed Services and/or Competing Services or in the course of which Prescribed Goods and/or Competing Goods are sold and/or Prescribed Services or Competing Services are rendered during the Restraint Period;  or

 

	
  

	
6.2.3

	
furnish any information or advice (whether oral or written) to any Prescribed Customer or use any other means or take any other action which is directly or indirectly designed, or in the ordinary course of events calculated, to result in any such Prescribed Customer terminating his association with the company and/or transferring his business to or purchasing any Prescribed Goods or Competing Goods or accepting the rendering of any Prescribed Services or Competing Services from any person other than the company, or attempt to do so.

 

	
  

	
6.3

	
solicit orders from Prescribed Customers for the Prescribed Goods and/or any Competing Goods and/or the Prescribed Services and/or any Competing Services; or canvass business in respect of the Prescribed Goods and/or any Competing Goods and/or the Prescribed Services and/or Competing Services from Prescribed Customers; or sell or otherwise supply any Prescribed Goods and/or Competing Goods to any Prescribed Customer; or render any Prescribed Services and/or Competing Services to any Prescribed Customer; or purchase any Prescribed Goods and/or Competing Goods from any Prescribed Supplier or accept the rendering of any Prescribed Services and/or Competing Services from it; or solicit appointment as a distributor, licensee, agent or representative of any Prescribed Supplier in respect of Prescribed Goods and/or Prescribed Services, including on behalf of or for the benefit of a Prescribed Supplier.

 

  

B - 4

  

 

	
  

	
6.4

	
Each of the undertakings set out in this Section 6 (including those appearing in a single sub-section) is severable inter alia as to (i) the nature of interest, act or activity; (ii) the categories of persons falling within the definition of prescribed customers; (iii) the categories of goods falling within the definition of the Prescribed Goods and Competing Goods; (iv) the categories of services falling within the definition of the Prescribed Services and Competing Services; and (v) the categories of persons falling within the definition of Prescribed Supplier;

 

	
7.

	
It is agreed and recorded that, without prejudice to any right or remedy which is available to the Company under any law or agreement, the unauthorized disclosure or use of any Confidential Information and Confidential Documents or a breach of my undertakings pursuant to Section 6 above, will cause immediate or irreparable injury to the Company and that the Company can not be adequately compensated for such injury in monetary damages, then, in order to safeguard the Company from any possible breach of confidentiality, I consent in advance that the Company will be permitted to obtain, from any Court or Tribunal, any temporary or permanent injunctive relief necessary to prevent such unauthorized disclosure or use, or threat of unauthorized disclosure or use.

 

	
8.

	
This Undertaking shall form an integral part of my employment agreement with the Company and a breach of any of my obligations hereunder, shall also constitute a material breach of such employment agreement.

 

	
9.

	
This Undertaking shall be governed by the laws of the State of Israel and the competent courts in Tel-Aviv shall have exclusive jurisdiction in all matters pertaining or relating thereto.

 

	
10.

	
If any condition, term or covenant of this Agreement shall at any time be held to be void, invalid or unenforceable, such condition, covenant or term shall be construed as severable and such holding shall attach only to such condition, covenant or term and shall not in any way affect or render void, invalid or unenforceable any other condition, covenant or term of this Agreement, and this Agreement shall be carried out as if such void, invalid or unenforceable term were not embodied herein.

 

	
11. 

	
Unless specifically limited herein, my undertakings hereunder shall be valid: (i) during the term of my employment in the Company, and unless the Company waived such right in writing, following termination of my employment with the Company without time limitation; (ii) in Israel or outside Israel, and - (iii) whether such undertakings may or may not be registered under any register prescribed by law.

 

	
Date:  6/8/2013

	  	

/s/ Shay Tomer                                 

	  
	  	  	
(signature)

	  
	 	 	 	 
	 	
Name: Shay Tomer

	 

 

B - 5exhibit_10-11.htm

Exhibit 10.11

 

English translation from original document in Hebrew

 

Personal Employment Agreement

 

That was signed in Rosh Pina on the 2nd day of the month of June 2013

 

By and between

 

On Track Innovations Ltd.

A public Company registered in Israel from the Industrial Zone Z.H.R, Rosh Pin (hereinafter the "Company")

 

-of the first part-

 

And

 

Shlomi Eytan Identity certificate no. 032171621

26 Avnei Chen Street, Tel Mond

(hereinafter the "Employee"),

 

-of the second part-

 

	
Whereas:

	
the Employee wishes to be employed by the Company at the Position of Chief Sales and Marketing Officer (hereinafter the "Position") and the Company wishes to employ him in this Position, all subject to the terms and provisions set forth hereafter in this agreement;

 

	
And whereas:

	
the Employee declares that there is nothing preventing him from entering into this agreement and that he has the abilities, experience and skills required for fulfilling the Position and he has expressed his wish to be employed by the Company at the Position,

 

	
And whereas:

	
the parties wish to put the terms of the Employee's employment in writing, in this agreement all as set forth hereafter in this agreement and subject to the terms and provisions included in it.

 

Therefore it was stipulated, declared and agreed between the parties as follows:

 

A.           General

 

	
1.

	
The preamble of this agreement constitutes an integral part of this agreement.

 

	
2.

	
The appendixes of this agreement are an integral part of this agreement.

 

	
3.

	
The titles of the sections are for the purpose of convenience only and they shall not be used to interpret any of the terms of this agreement.

 

B.            The Employment

 

	
4.

	
This agreement fully contains the terms and provisions that apply to the employment of the Employee by the Company. No agreements and/or general and/or special collective agreements or others shall apply to the employment relationship between the parties and the employment relationship shall be determined in this agreement only.

 

  

  

  

 

	
5.

	
The Employee's Undertakings:

 

The Employee hereby undertakes:

 

	
  

	
5.1.

	
To perform the job diligently honestly and faithfully, in any place, in Israel and abroad, in accordance with instructions that he shall receive from time to time from his supervisors, and for this purpose he shall dedicate his time, efforts, abilities and experience insofar as necessary and required. The Employee shall not engage in any work or engagement that is not within the framework of his employment in the Company without the Company's prior written approval.

 

	
  

	
5.2.

	
There is nothing preventing him, whether according to agreement or otherwise from entering into this agreement and performing his undertakings according to it.

 

	
  

	
5.3.

	
According to the management's demand, the Employee shall go through medical examinations and/or other tests and/or he shall furnish medical certificates and/or medical statements regarding the condition of his health, insofar as he shall be required for checking his suitability to the Position.

 

	
  

	
5.4.

	
The Employee undertakes to notify the Company regarding any change in the condition of his health and to cooperate with the Company, if it shall demand according to its discretion, medical documents or it shall refer him to a medical examination.

 

	
  

	
5.5.

	
The Company undertakes that it shall carefully keep all of the medical details, and only use them for the purpose of insurance and/or with respect to his ability to fulfill his Position.

 

	
  

	
5.6.

	
All the details that he gave the Company at the time of presenting his candidacy to the Position are full, correct and accurate, and he undertakes to notify the Company regarding any change that shall occur in them.

 

	
  

	
5.7.

	
The Employee undertakes to notify the Employer, immediately without any delay, of any matter or issue in respect to which he has a personal interest and that could create a conflict of interests with his Position at the Company.

 

D.            Work Hours

 

	
6.

	
It is agreed by the parties that the Employee's Position is a managerial position that requires a special amount of personal trust, therefore the provisions of the Work Hours and Rest Law, 5711- 1951 shall not apply to his employment (hereinafter the "Work Hours and Rest Law") and the Employee shall not be entitled to receive any special or additional consideration from the Company for working overtime.

 

E.            Consideration

 

	
7.

	
The Company shall pay the Employee, in consideration for his employment in the Company, a monthly salary as set forth in the notice regarding employment terms which is attached to this agreement as appendix A (hereinafter the "Effective Salary").

 

	
8.

	
The Effective Salary shall be updated in accordance with the cost of living as shall apply to the entire economic market, and subject to the periodic decision of the management.

 

	
9.

	
The components of the salary shall be updated, if at all, according to the Company's sole discretion, once per year in the month of January.

 

	
10.

	
The Effective Salary alone shall constitute the basis for making allocations for social benefits as mentioned in this agreement and for severance pay.

 

  

  

  

 

	
11.

	
It is hereby clarified that any grant and/or participation in costs and/or refund of costs and/or any other benefit which the Employee shall receive (if at all), do not constitute a part of the Effective Salary for receiving social benefits, including severance pay and/or allocations made to the different funds.

 

F.            Annual Vacation, Sickness Pay and Convalescence Pay

 

	
12.

	
The Employee shall be entitled to annual vacation as set forth in appendix A.

 

	
13.

	
The Employee shall coordinate his vacation with the Company and with the approval of his direct manager at least 14 days in advance.

 

	
14.

	
It is hereby clarified that vacation days may not be accumulated beyond two annual accumulated quotas, and that the unused vacations days beyond the permitted accumulation as mentioned above shall be erased unless it was otherwise agreed between the parties in writing.

 

	
15.

	
The Employee shall be entitled to sickness pay in accordance with the Sickness Pay Law, and against presenting medical certificates.

 

	
16.

	
After the Employee shall complete one full year of employment he shall be paid convalescence pay in accordance with the amounts and rules, as shall be determined from time to time in agreements between the Coordination Office of the Economic Organizations and the Histadrut.

 

G.           The Term of the Agreement

 

	
17.

	
This agreement shall come into effect on the date of its signature for an unlimited period.

 

	
18.

	
Notwithstanding the aforesaid, each of the parties may terminate this agreement for any reason and without any reason, and this is by giving a prior written notice as mentioned in appendix A.

 

	
19.

	
During the early notice period the Employee shall continue his Position, and he shall transfer the Position in an efficient and organized manner to his replacement, in accordance with the Company's decision. Notwithstanding the aforesaid, the Company may forgo the Employee's work during the early notice period, all or in part.

 

	
20.

	
During the early notice period, whether the Employee worked in full or in part, or not, the Employee shall be entitled to his full salary in addition to all the various benefits that accompany it. Notwithstanding the aforesaid, the Company shall be entitled to notify the Employee of the immediate severance of the employment relationship and pay him consideration for the early notice (in the amount of the monthly salary that the Employee would have earned had he continued to work during the early notice period), and in this case the Employee shall be entitled to early notice pay only.

 

	
21.

	
Notwithstanding the aforesaid, the Company shall be entitled to immediately dismiss the Employee without early notice in cases of breach of trust; he maliciously caused damage to the Company or its property; he was convicted of a criminal offense with respect and/or as a result of the Position; he was convicted of a shameful criminal offense.

 

H.           Provident Funds, Supplementary Study Fund and Managers Insurance

 

	
22.

	
If and insofar it was determined in appendix A, the Company shall make allocations to a pension fund and/or managers insurance or provident fund and/or supplementary study fund in the name of the Employee.

 

  

  

  

 

	
23.

	
The Company shall transfer the payments required each month and it shall deduct from the Employee's salary a parallel sum for the Employee's share as mentioned in appendix A.

 

	
24.

	
For the sake of avoiding doubt, payments to the pension fund and/or managers insurance, if and insofar as he is entitled to them in accordance with appendix A, shall be calculated according to the Effective Salary as defined above.

 

	
25.

	
It is hereby clarified that the payments of the Employer to the pension fund and/or managers' insurance shall be in lieu of the Employee's entitlement to severance pay, as this term is defined in section 14 of the Severance Pay Law, 5723- 1963.

 

I.             Termination of Employment

 

	
26.

	
If the Employee's employment in the Company has been terminated for any reason, except in the case of dismissal in circumstances that deny the Employee the right to receive severance pay, the Employee shall be entitled to receive all of the sums that have accumulated in his favor, including the relative share of the commissions set forth in appendix A, and all the sums that were allocated for pension (insofar as allocated), whether from his allocations or from the Company's allocations, including all the linkage differences, interest and profits that have accumulated in that fund for such allocations.

 

	
27.

	
The Company and the Employee have adopted for the purpose of this agreement the General Approval regarding Employers' Payments to a Pension Fund and Insurance Fund in lieu of Severance Pay according to the Severance Pay Law, 5723- 1963 (section 14 of the law), as published with the signature of the Labor Minister on the 30th of June 1998 and which was published in the official gazette 4659 (hereinafter the "Order of the Minister of Labor"). The version of the order of the Minister of Labor is attached to this agreement as appendix C.

 

	
28.

	
The Company's payments, as mentioned above shall be in place of 100% severance pay that shall be due to the Employee or to his survivors for the salary for which the payments were paid and for the period that they were paid (hereinafter the "Absolved Salary")

 

	
29.

	
The order of the Ministry of Labor shall apply to the Company's allocations however this cannot derogate from the Employee's right to severance pay according to law, collective agreement, expansion order, or labor agreement, for wages beyond the absolved salary.

 

	
30.

	
If the Employee's employment was terminate due to his resignation or due (God forbid) to reasons that prevent the continuation of his work in the Company (including his death) the Employee shall be entitled (or his survivors shall be entitled, respectively):

 

	
  

	
30.1

	
To receive from the Company the monthly salary for only the part of the period of the year that he actually worked, furthermore the relative share of the commissions set forth in appendix A.

 

	
  

	
30.2

	
To receive from the compensation fund all the sums that have accumulated in his favor in this fund for the allocations made to the provident fund, whether from his allocations or from the Company's allocations, including all the linkage differences, interest and profits that have accumulated in this fund and to receive the allocations that have accumulated in his favor in the supplementary study fund, whether from his allocations or whether from the Company's allocations.

 

	
31.

	
It is hereby agreed and declared that in the event that the dismissal of the Employee is due to a breach of trust or other fundamental breach by him of his undertakings towards the Company according to this agreement, including inter alia, with respect to confidentiality and non – competition including dismissal in circumstances that deny according to any law, the Employee his right to severance pay, then notwithstanding the provisions in this agreement, the Employee shall not be entitled to receive an early notice of his dismissal or early notice pay for this dismissal and he shall not be entitled to severance pay and the Company shall be entitled to demand that he return all the sums that it transferred to the severance pay fund on account of severance pay as mentioned, including any linkage differences, interest and profits that have accumulated in this fund for these sums.

 

  

  

  

 

	
32.

	
At the end of the Employee's employment in the Company the Employee shall deliver to the Company all of the documents, information and any material or other property that he received or that was prepared by him with respect to his employment in the Company.

 

	
33.

	
For the sake of avoiding doubt the Employee shall not have a right of offset and/or the right of lien against the Company with respect to any property or money of the Company that the Employee holds or with respect to any debt of the Employee to the Company.

 

J.             Professional Trips Abroad

 

	
34.

	
The Employee is aware, that in the framework of his Position he shall be sent from time to time, by the Company abroad for various periods.

 

	
35.

	
The Employee undertakes to fulfill all of the instructions and guidelines of the Company in the framework of such mission.

 

	
36.

	
It is hereby agreed that with respect to trips above 14 days, a departure day shall not be determined until after consulting with the Employee.

 

	
37.

	
The Employee's refusal to travel abroad in the framework of his Position, after he was requested to do so by the Company without any relative reason constitutes a breach of his duties as an Employee.

 

	
38.

	
The Company will pay the travel costs, accommodations and per diem abroad in accordance with the Company's policy, as shall be determined from time to time.

 

K.           Confidentiality and Non - Competition

 

	
39.

	
The Employee hereby declares that he is aware that in light of the Company's business the maintaining of confidentiality of all information and/or document that he shall receive during his employment is very important, and he undertakes to maintain confidentiality in accordance with the confidentiality agreement attached hereto as appendix C of the agreement.

 

	
40.

	
The Employee hereby undertakes:

 

	
  

	
40.1

	
Not to enter into a contractual engagement, directly or indirectly, with a customer of the Company and/or companies associated with it, whether as self employed or whether employed under salary, including by a partnership or holding by himself or by others, of management shares or rights in any corporations, during the term of this agreement and for an additional term of 12 months after the end of the term of this agreement, in any matter connected to the Company's business, except in the framework of his employment for the Company. It is clarified that a list of customers and/or suppliers and/or a marketing layout and/or any other list that was used in the Employee's regular activities in the framework of his employment in the Company are a commercial secret of the Company. The Employee undertakes not to exploit and/or use these lists, unless the Company has given its express written consent.

 

	
  

	
40.2

	
Not to engage during the term of this agreement and for an additional term of 12 months after the end of the term of this agreement, for any reason, in Israel or anywhere else in the world, whether directly or indirectly, in a business, Position, work or any other engagement in the field of contact/ contactless smart cards or any other field competing with the Company's business and/or the Company's associated with it.

 

  

  

  

 

	
  

	
40.3

	
Not to harm in any manner the Company's reputation or the reputation of any of the Company's shareholders or the Company's reserve of customers.

 

	
41.

	
The Employee and the Company hereby declare that the Effective Salary as defined in this agreement was agreed by them taking into consideration, inter alia, the non- competition restrictions that apply to the Employee according to section 43 above.

 

L.            Intellectual Property and Service Inventions

 

	
42.

	
Any invention, patent, copyright, trademark, commercial secret, knowhow and information that were developed by the Employee as a result of his employment in the Company and/or during his employment in the Company shall belong to the Company, and the Employee undertakes to sign any document that shall be required for realizing the Company's rights as mentioned.

 

M.           Miscellaneous

 

	
43.

	
The payments and benefits of any type and kind that are granted to him according to this agreement are subject to income tax deductions and other obligatory deductions which the Company must deduct according to any law and nothing stated in this agreement shall be construed as imposing on the Company the duty to pay tax or any other obligatory payment that applies to the Employee except for the benefit value of meals which shall be grossed up by the Company or if otherwise agreed.

 

	
44.

	
The terms of his employment in the Company are regulated only according to this personal employment agreement between him and the Company and except for the express provisions in this agreement the Employee shall not be entitled to any other payments or benefits for his employment and the termination of his employment in the Company.

 

	
45.

	
This Company shall take the place of all prior written or verbal agreements between the Company and the Employee.

 

	
46.

	
Any change and/or cancellation of any of the sections of this agreement shall be made only in a written document which shall be signed by both parties.

 

	
47.

	
The parties' addresses for the purpose of this agreement shall be as mentioned in the title of this agreement and any notice, document or court document that shall be sent by one party to the other according to the addresses above shall be considered as having reached their destination, if personally delivered – at the time of their delivery, and if delivered by registered mail – at the end of 72 hours after they were sent as mentioned.

 

In witness whereof the parties have signed:

 

	
/s/ Dalit Bizan

VP of Human Resources

	 	/s/ Shlomi Eytan
	
On Track Innovations Ltd.

	 	
The Employee

 

Date: 2nd of June 2013

 

  

  

  

 

Appendix B

 

General Approval regarding the Payments of Employers to a Pension Fund and Insurance Fund 

instead of the payment of Severance Pay according to the Severance Pay Law, 5723- 1963

 

By virtue of my authority according to section 14 of the Severance Pay Law 5723 – 1963, (hereinafter the "Law") I confirm that payments that the Employer paid starting from the date this approval was published, for his Employee for comprehensive pension in a pension provident fund which is not an insurance fund as defined in the Income Tax Regulations (Rules for Approving and Managing a Provident Fund) 5724 – 1964 (hereinafter: "Pension Fund"), or managers insurance including the possibility of a pension or a combination of payment to a pension plan and to plan which is not a pension plan in an insurance fund as mentioned above (hereinafter: "Insurance Fund"), including payment that he paid while combining payments to a pension fund and to an insurance fund whether there is a pension plan in the insurance fund or not (hereinafter: the "Employer's Payments") shall be in lieu of severance pay due to the Employee for the salary from which these payments were paid to the fund and for the period which they paid (hereinafter: the "Absolved Salary") provided the all of the following have existed:

 

The Employer's Payments-

	
(a)

	
To the pension fund are not less than 14 1/3% of the Absolved Salary or 12% of the Absolved Salary if the Employer pays for his Employee in addition to this also payments to supplement severance pay to a pension provident fund or to an insurance fund in the name of the Employee in the amount of 2 1/3% of the Absolved Salary. If the Employer did not pay in addition to the 12% also 2 1/3% as mentioned, his payments shall come instead of 72% of the severance pay of the Employee, only.

	
(b) 

	
To an insurance fund, not less than one of the following:

 

	
(1)

	
13 1/3 % of the Absolved Salary, if the Employer also paid in addition to this payments to ensure monthly income in the event of loss of ability to work, in a plan that was approved by the Supervisor of the Capital Market and Savings in the Finance Ministry at the rate required in order to ensure 75% of the Absolved Salary at least or at a rate of 2 1/2 % of the Absolved Salary, whichever is the lower of the two (hereinafter: "Payment to Disability Insurance");

 

	
(2)

	
11% of the Absolved Salary, if the Employer also paid in addition Payment to Disability Insurance, and in this event the Employer's payment shall come instead of only 72% of the Employee's severance pay. If the Employer paid in addition to this also payments to supplement severance pay to the severance pay provident fund or insurance fund in the name of the Employee at the rate of 2 1/3% of the Absolved Salary the Employer's payments shall come instead of 100% of the Employee's severance pay.

 

	
2.

	
A written Agreement was executed between the Employer and the Employee not later than three months after the Employer's payments have begun to be paid in which –

 

	
(a)

	
The Employee has agreed to the arrangement according to which this approval in the version specifying the Employer's payments to the pension fund and insurance fund respectively. The version of this approval will be included in the mentioned Agreement;

 

	
(b)

	
An advance waiver of the Employer of any right that he might have to a refund of funds from his payments, unless the Employee's right to severance pay has been denied in a judgment by virtue of section 16 or 17 of the Law or the Employee withdrew funds from the pension fund or the insurance fund not as a result of an Entitling Event. "Entitling Event" shall mean - death, disability or retirement at the age of sixty or more.

 

	
3.

	
This approval does not derogate from the Employee's right to severance pay according to the law, collective Agreement, expansion order or employment Agreement, for salary beyond the Absolved Salary.

 

	 	
Eliyahu Ishai

 

Minister of Labor and Welfare

 

  

  

  

 

Appendix C

 

On Track Innovations Ltd.

 

Written Undertaking regarding Confidentiality, Intellectual Property and Non- Competition

 

I the undersigned, Shlomi Eytan, bearer of identity certificate number 032171621 hereby declare and undertake towards On Track Innovations Ltd., and any other subsidiary of it or Company associated with it (jointly and separately hereafter the "Company"), as follows:

 

	
1.

	
In this document the terms set forth hereafter shall have the meaning stipulated at their side:

 

	
  

	
1.1.

	
"Secret Information" means any secret information or commercial secret of any type and kind of the Company or with respect to the Company or its business or concerning any of the Company's shareholders or its customers or the business of any of the Company's shareholders or that concerns future plans of the Company regarding the manner of managing its business, including an information connected to products produced by the Company or their development, their manufacture or marketing to the Company's customers, to the Company's calculations, the Company's relationship with its customers and its suppliers, to financial information and other information concerning the Company's business and the products manufactured or developed by the Company including any information concerning the intellectual property rights including patents, models, copyrights and the technology that the Company uses or develops with respect to the Company's products.

 

	
  

	
1.2.

	
"Secret Document" the drawings, accounts, specifications, printouts, disks, magnetic film, computer programs, compact discs, work papers and any document or database that includes the secret information all or in part, whether it was prepared by the Company or for it; any document of any type and kind that were used by me or shall be used by me with respect to my work in the Company.

 

	
  

	
1.3.

	
The "Agreement" means the employment agreement of the 2nd of June 2013 which was sold between me and the Company.

 

	
2.

	
I am aware of the fact all the secret documents all of them without any exception, that include the secret information or any part of it, or that are connected to it, shall be considered for all intents and purposes and at any time the Company's sole property, and I do not have and I shall not have any rights in the secret information or in the secret documents including in any development or future improvement that shall be made in the framework of my work for the Company or with respect to it.

 

	
3.

	
I hereby confirm and undertakes towards the Company as follows:

 

	
  

	
3.1.

	
To keep complete secret and not to disclose to another or to others the secret information or the secret documents or any part of them, whether directly or indirectly or whether in any other manner, and not to harm in any way the Company's reputation or any of the Company's shareholders or the Company's reserve of customers.

 

	
  

	
3.2.

	
Not to make any use, exploitation or implementation of the secret information or the secret documents or any part of them except for the use required for implementing the purpose for which the secret information or the secret documents have been given to me by the Company.

 

	
  

	
3.3.

	
Not to publish the secret information or the secret documents or any part of them in any manner.

 

  

  

  

 

	
  

	
3.4.

	
Not to copy, not to photograph, not to photocopy and not to create in any other manner copies of the secret documents or any part of them, including by copying them by computer, except only that is required for implementing the purpose for which the secret information or the secret document have been given to me by the Company or for performing the work for the Company.

 

	
  

	
3.5.

	
To return to the Company the secret information and the secret documents including any copy that was made of them, no later than at the end of completing the use of them for the purpose for which the Company gave me the secret information or the secret documents or no later than within 24 (twenty four) hours after I was required to do so by the Company, or at the time my employment is terminated by the Company – whichever is the earlier of these times, without any copies of the secret information and the secret document being left with me, including copies that were made by computer.

 

	
  

	
3.6.

	
Not to remove from the Company's office or take for my private use any secret information or secret documents without the prior written permission of the Company, provided that it is required only for performing the work for the Company in the framework of the Position.

 

	
4.

	
I agree that:

 

	
  

	
4.1.

	
Any secret information and secret documents and any other information that was made and/or developed by me during the period of my employment shall be and shall remain under the Company's sole ownership.

 

	
  

	
4.2.

	
The Company reserves all the rights in any patent, copyrights or any other copyright that was invented or planned by the Company with respect to the secret information and the secret documents.

 

	
  

	
4.3.

	
Any information including any patent or patent request, trademarks, service marks, drawings, moral rights (droit moral), and any copyrights or other intellectual property rights (jointly hereinafter referred to as the "Intellectual Property Rights") that were invented or created or that shall be invented or created during the period of my employment for the Company, as a result of my work or with respect to my work for the Company, shall be, from the date of their creation, intellectual property exclusively owned by the Company, and I do not have and I shall not have any claim or lawsuit against the Company with respect to the intellectual property rights. I undertake to sign any document and to take any action that shall be required for registering the rights as mentioned in the name of the Company or to prove the Company's rights, if this is required according to the Company and/or its legal advisors.

 

	
  

	
4.4.

	
If the Company shall not be able as a result of my emotional or physical condition or as a result of my refusal to cooperate with the Company to guarantee my signature on an application according to any law to register a patent or copyrights in the name of the Company (as mentioned in section 4.3 above) then I hereby grant an absolute and irrevocable general power of attorney to the Company and/or any of its Employees that are authorized to sign on its behalf and/or to act on its behalf in order to submit a registration application and to act in order to obtain registration of a patent or copyright in the name of the Company. This section 4.4 is the same as a power of attorney as mentioned.

 

	
  

	
4.5.

	
Without derogating from the generality of the aforesaid I undertake not to submit an objection and/or to object in any way the Company's intellectual property rights including, inter alia, regarding patents or patent applications of the Company and/or on its behalf.

 

  

  

  

 

	
5.

	
Taking into consideration the fact that the Company shall invest much resources in my training for performing my work in the Company that are expressed, inter alia, by, becoming familiar with the field which the Company engages in and in consideration for the non- competition remuneration paid to me according to the agreement, I hereby undertake towards the Company:

 

	
  

	
5.1.

	
Not to enter into any contractual engagement, directly or indirectly with a customer of the Company or any of the associated companies (whether as an Employee, consultant, self employed or otherwise) for the period of 12 months after the end of the term of the agreement, in any matter that is connected to the Company's business, except in the framework of my employment for the Company.

 

	
  

	
5.2.

	
Not to engage, during the term of this agreement and for an additional period of 12 months after the term of this agreement for any reason, in Israel or any other place in the world, whether directly or indirectly, in any business, Position, work or other engagement in the field of contact/ contactless smart cards or in the field of parking, parking lots and toll roads, that competes with the Company's business and/or the business of its associated companies.

 

	
  

	
5.3.

	
Not to persuade, in my favor or in the favor of any third party, any directly, Employee or consultant of the Company to leave the Company or to grant services to another, for a period of 12 months before the end of my employment for the Company who filled a central Position or managerial Position with respect to the Company and/or it is probable (according to eh Company) that he had in his possession secret information or that he could affect the Company's relationship with its customers (whether if this person shall breach the employment agreement or contractual engagement with the Company or not).

 

	
6.

	
I hereby agree without derogating from any right or remedy available to the Company according to law or agreement, prohibited use or disclosure of the secret information or the secret documents or a breach of my other undertakings as mentioned in this written undertakings shall cause immediate and irreparable damage to the Company and that financial compensation shall not suffice to compensate the Company due to this, and therefore in order to protect it against a possible breach of my obligation of secrecy towards it, I agree in advance that the Company shall be entitled to receive, in any court or any other legal instance, any temporary or permanent remedy that is required in order to prevent such prohibited disclosure or use, or threat to disclose or use the secret information as mentioned.

 

	
7.

	
I confirm that a breach of any of my undertakings according to this written undertaking by any other person on my behalf that has been exposed to the secret information and/or the secret documents shall be considered as a breach of this written undertaking by me.

 

	
8.

	
Except of otherwise limited in this document, my undertakings according to this written undertaking shall be in force: (a) for the entire period of my employment for the Company, except if the Company waived this in writing, after my work for the Company ended without any limit in time; (b) whether in Israel or outside of Israel; and (c) whether these undertakings may be registered according to law or not.

 

	
9.

	
This written undertaking constitutes an integral part of my employment agreement by the Company and a breach of my undertakings according to this undertaking shall also constitute a breach of my employment agreement.

 

	
10.

	
If a term or provision of this written undertaking shall be considered at any time as invalid or unenforceable, such term or provision shall be considered as being excluded and such determination shall refer to these terms or provisions only and they shall not affect in any way the other provisions of this written undertaking and this written undertaking shall be performed as if the term or provision which are null and void or unenforceable are not included in it.

 

	
11.

	
I confirm by my signature below that I have carefully read the provisions of this written undertaking above, and the undertakings set forth above which I have taken upon myself are clear to me.

 

In witness whereof I have signed on the 2nd of the month of June 2013

 

	 	
/s/ Shlomi Eytan

Shlomi Eytan

	 
	 	
signature

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]