Document:

exv10w38

 

Exhibit 10.38

	 	 	 
	Pinchas Reich

	 	January 1, 2003
	
	 	 
	Dear Mr. Reich,
	 	 

Re:     Your Employment at VERAZ Networks Ltd.

We are pleased to confirm by this Agreement and its Appendices the terms of your employment at
VERAZ Networks Ltd. (private co. no. 513044537, hereinafter: “Veraz” / the “Company”) and wish you
every success in your position.

	A.	 	The Position

	 	1.	 	You have been accepted to the position of Vice President of Sales, VERAZ LTD.
(hereinafter: the “Position”) in a sales unit subordinate to the CEO of Veraz Networks
Inc., or as a result of any change of control in the Company, as defined in section J of
Appendix A (Change of Control), to another position with similar powers and
responsibilities as the Company may decide and shall instruct, provided that the
provisions of section J of Appendix A – Terms and Conditions of Employment, remain intact.
	 
	 	2.	 	Your employment with the Company is for an indefinite term commencing on January 1,
2003.
	 
	 	2.	 	Position of Personal Trust
	 
	 	3.	 	You acknowledge and agree without reservation that:
	 
	 	3.1	 	As there is no supervision over your hours of work and rest and your position is one
of those positions requiring a special measure of personal trust, as defined in the Hours
of Work and Rest Law, 5718 – 1951, the provisions of this Law shall not apply to you, and
you shall not receive any remuneration for working overtime or extra hours.
	 
	 	3.2	 	The Position and work requirements require work according to flexible work hours,
work beyond regular work hours or even on irregular work days.

	C.	 	The Salary

	 	4.	 	Your salary shall be at the rate of NIS 51,359 gross monthly (hereinafter: the
“Salary”) and shall be updated according to the cost of living increment as shall be paid
from time to time to employees in the marketplace. The above Salary includes the cost of
living increment which was paid prior to the signing of this Agreement.
	 
	 	5.	 	Your Salary shall include a monthly payment, at the rate of 10% (ten percent) of the
Salary owing to you for that month – as special consideration

 

 

	 	 	 	for your undertaking to limit competition against the Company as specified in Appendix A,
attached hereto (hereinafter: the “Special Consideration”), provided that you are not in
breach of your above mentioned undertaking.
	 
	 	6.	 	Your Salary will be paid to you on the first day of each month, and in any event by
no later than by the ninth day of each month.
	 
	 	7.	 	Furthermore, you shall be entitled to be included within the scope of a senior
executive benefits plan as agreed upon between you and the Company with the approval of
the Company’s Board. The terms and goals of the plan shall be agreed upon by no later than
the end of January.

	D.	 	Annual Vacation, Sick Leave, Holiday Payments and Military Reserve Duty

	 	8.	 	You are entitled to annual vacation eave of 21 working days for your first year’s
work with the Company (hereinafter: the “Initial Vacation Quota”).
	 
	 	9.	 	After your first year’s work, for any additional year’s work with the Company one
work day shall be added to the Initial Vacation Quota up to a maximum annual vacation
ceiling of 21 (twenty one) working days annually.
	 
	 	10.	 	You shall be entitled to accumulate to your credit the unutilized balance of
contractual vacation days – up to a ceiling of 600 work hours. The accumulated vacation
hours above and beyond this ceiling shall be redeemed by the Company in your regular
Salary. The redemption of your Salary shall be done without the payment of social or other
benefits. You must actually utilize at least five consecutive working days as annual
vacation leave.
	 
	 	11.	 	You shall be entitled to be absent from work with payment due to illness 1.5 days
every month which may be accumulated up to a maximum ceiling of 90 days. Payment of sick
leave shall be made subject to the providing of a duly issued sick note, except for two
non consecutive sick days annually which you may utilize without said sick note. There is
no redemption of sick days which have not been utilized.
	 
	 	12.	 	At the end of the work year, you shall be paid holiday pay according to 12 days a
year. The tariff per day of holiday pay shall be according to law, in an amount acceptable
at the Company and as shall be updated from time to time.
	 
	 	13.	 	You shall be entitled to receive a full salary from the Company for absence due to
military reserve duty against provision of a certificate from the Israel Defense Force
authorities regarding the duration of service. The National Insurance Institute payments
which shall be received on account of your military reserve duty shall belong to the
Company.

	E.	 	Comprehensive Insurance and Provident Fund and/or Executive Insurance Plan

 

 

	 	14.	 	Upon commencement of your employment you are given the option of choosing between
insurance under a comprehensive insurance policy and a provident fund or insurance under
an executive insurance plan and/or a combination of both of the above. The rates of
provisions made by the Company and you from your Salary are as detailed below:
	 
	 	15.	 	Pension Fund: the Company shall make payments and deductions for you to the
                                        pension fund (the “Fund”) as specified
below:
	 
	 	15.1	 	6% of your Salary on account of severance pay.
	 
	 	15.2	 	6% of your salary on account of pension.
	 
	 	15.3	 	Similarly, the Company shall pay 2.33% of your Salary and shall transfer such to “
                    ” Provident Fund on account of severance pay.
	 
	 	15.4	 	The Company shall deduct 5.5% from your Salary and shall transfer such to the Fund.
	 
	 	16.	 	Payments made by the Company as specified above shall be in lieu of full severance
pay, if owed to you, pursuant to Section 14 of the Severance Pay Law, 5723 – 1963, and
pursuant to the general certificate from the Minister of Labour and Welfare regarding
employers’ payments to pension funds and insurance funds in lieu of severance pay,
attached to this document as Appendix B.

And/Or

	 	17.	 	Executive Insurance Plan: the Company shall make provisions and deductions
for you to the executive insurance plan at Clal Bit Insurance Company (the “Policy”). The
Policy shall be owned by the Company and shall be managed in your name, pursuant to the
following provisions:
	 
	 	17.1	 	8.33% of your Salary on account of severance pay.
	 
	 	17.2	 	5% of your Salary on account of pension.
	 
	 	17.3	 	The Company shall deduct 5% of your Salary on account of a pension and shall forward
such amounts to the Policy.
	 
	 	18.	 	The Company shall also make payments to secure monthly income in the event of loss of
working capacity, at the rate required to guarantee 75% of your Salary, or payments at the
rate of up to 2.5% of your Salary, according to the lower of the two.
	 
	 	19.	 	The provisions made by the Company on account of the Policy shall be in lieu of full
severance pay, if you are owed any, pursuant to section 14 of the Severance Pay Law, 5723
– 1963 and pursuant to the general certificate from the Minister of Labour and Welfare
regarding employer’s payments to

 

 

	 	 	 	pension funds and insurance funds in lieu of severance pay, attached to this document as
Appendix B.
	 
	 	20.	 	For the removal of any doubt it is hereby clarified that the Company waives its right
to a reimbursement of monies paid to the pension fund and/or provident fund and/or the
Policy, unless your right to severance pay has been denied following a court judgement,
where it has been denied, or if you withdraw funds from the Policy due to an occurrence
which is not an “entitling event”. For this purpose, “entitling event” shall mean death,
disability or retirement at the age of 60 years old or more.
	 
	 	21.	 	For the removal of any doubt it is emphasized that in any event the base salary for
provisions and deductions to the Pension Fund and/or the Provident Fund and/or the
Executive Insurance Plan shall each, separately and/or jointly, in any form and manner
whatsoever, not exceed the amount of the Salary as defined above.

	F.	 	Advanced Study Fund

	 	22.	 	Upon commencement of your employment and subject to your presenting an appropriate
certificate from the human resources office, you will become a member of the Kinneret
Advanced Study Fund (hereinafter: the “Advanced Study Fund”). The Company shall make
monthly provisions at the rate of 7.5% of your Salary and shall deduct 2.5% from your
Salary and transfer these amounts to the Advanced Study Fund.
	 
	 	23.	 	The amounts to be accumulated in the Advanced Study Fund will be made available to
you according to the regulations of the Advanced Study Fund and the tax regulations in
force from time to time.
	 
	 	7.	 	Further Benefits
	 
	 	24.	 	Company Car: during the period of your employment at the Company a car shall
be provided for your use of the model and manufacture year at the discretion of the
Company and in accordance with its procedures (hereinafter: the “Car”). The Company shall
bear reasonable fuel costs for the Car. The value of the use of the Car, according to the
income tax regulations as shall be in force from time to time, shall be debited against
you and taxes shall be deducted from your Salary as required by law. The provision of the
Car for your use, as stated, covers and is in lieu of payment of travel expenses under the
general expansion order valid in the Israeli economy.
	 
	 	25.	 	Mobile Phone: the Company shall provide you with a mobile phone of the model
and network at the discretion of the Company (hereinafter: the “Mobile Phone”), and shall
cover all Mobile Phone expenses. The Company shall deduct any tax and/or levy and/or other
payment from your Salary which it is under a duty to deduct for the Mobile Phone under the
provisions of any law.

 

 

	 	26.	 	Annual Health Review – the employee shall be entitled to undergo an annual
health examination at an institution to be determined by the Company.
	 
	 	27.	 	The Options Plan: the Company (or the parent company) shall act to adopt an
options plan (or some other benefits plan), during the month of January 2003. The Company
shall grant you options according to the policy of the Company (or the parent company) as
shall be formulated from time to time vis-à-vis employees of your status. Every grant or
benefit as stated is subject to the exclusive discretion and approval of the board of
directors of the Company.

	G.	 	Term and Termination of Employment

	 	28.	 	As has been stated above, the Employment Agreement is for an undefined term. Each
party shall be entitled to terminate the Agreement upon ninety (90) days prior written
notice to the other party. Should the termination of the Agreement be in consequence of
any Change of Control, as set forth in section J of Appendix A, the provisions of section
J of Appendix A shall apply to the termination of the Agreement.
	 
	 	29.	 	During the notice period you must continue to carry out your work in a full and
proper manner and hand over your Position to your designated replacement, as necessary and
as required.
	 
	 	30.	 	The Company may waive all or part of your actual employment during the notice period,
continually or alternately.
	 
	 	31.	 	The Company may immediately terminate the employment relationship between the parties
prior to the end of the notice period, in whole or in part, provided that you are given
compensation in the amount of your Salary (as defined above) for the period for which you
have not been given prior notice under this Agreement and you may keep the Car and the
Mobile Phone throughout the notice period. Furthermore, there shall be an acceleration of
all the options which should have been vested in the course of the three months, had the
Employee remained at the Company.
	 
	 	32.	 	Notwithstanding the above, the Company may dismiss you without prior notice, under
those circumstances in which the Company is entitled to dismiss you without prior notice
under the provisions of any law, including in each of the following cases:
	 
	 	32.1	 	The Company has reasonable suspicion that a criminal offence has been committed in
connection with your employment at the Company and/or the commission of an offence
involving moral turpitude.
	 
	 	32.2	 	A breach of your duty of loyalty to the Company and/or the commission of any act
involving a conflict of interests.
	 
	 	32.3	 	A breach of your undertakings to keep confidentiality, non-competition, not to damage
reputation or infringe intellectual property, as set forth in the

 

 

	 	 	 	Appendix to this Agreement, which has not been remedied within 10 (ten) days of the date
on which you were given written warning.
	 
	 	32.4	 	Causing malicious damage to Company property or causing damage to Company property as
a result of a grossly negligent act. In such a case you also agree that the Company shall
duly deduct amounts from your Salary to cover all or part of the expenses and costs of the
damage.
	 
	 	33.	 	Upon termination of employment for any reason whatsoever, you must return to the
Company any property, equipment, document or information in your possession and which has
been given to you in the course of your employment at the Company and you shall have no
right of lien or other right on account of the above.

	I.	 	General

	 	34.	 	Under Company policy, the terms and conditions of your employment, including the
amount of your Salary and fringe benefits, are personal and confidential information and
you undertake not to disclose such information to other Company employees and/or to any
third party unless you are required to so under law. Nothing stated in this Agreement
shall derogate from any right vested in you in under the provisions of any law, extension
order, collective agreement or employment agreement.
	 
	 	35.	 	The Appendices: “Terms and Condition of Employment” and the “General Certificate
Under Section 14 of the Severance Pay Law” are an integral part of this Agreement. By your
signature on this Agreement you are certifying your agreement to all the provisions of the
Agreement and the Appendices and that you will act in accordance therewith.

The Management of the Company is pleased to have you join its workforce, wishes you every success
in your position and hopes to see you as a fully integrated member of its team.

Faithfully,

Veraz Networks Ltd.

Human Resources

	I hereby certify my consent to all the provisions of this Agreement and its Appendices.

	 	 	 	 	 
	January 1, 2003

	 	Pinchas Reich
	 	( — )
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Name of Employee
	 	Signature of Employee

	 	 	 
	Enclosures:

	 	Appendix A – Terms and Conditions of Employment.
	 

	 	Appendix B – General Certificate Under Section 14 of the Severance Pay Law.

 

 

	 	 	 
	 

	 	Appendix A – Terms and Conditions of Employment

	A.	 	Preamble
	 
	1.	 	This Appendix constitutes an integral part of the Personal Employment Agreement dated January
1, 2003 (hereinafter: the “Agreement”).
	 
	2.	 	The Agreement is written in the masculine form for the sake of convenience only and applies
equally to men and women.
	 
	B.	 	Special Agreement
	 
	3.	 	This Agreement is a personal agreement and the Employee’s terms and conditions of employment
shall only be pursuant to the provisions of this Agreement and its Appendices. No provisions
of any collective agreement, collective arrangement or custom of any sort whatsoever, if and
when such should apply, shall apply to the relationship between the parties, save for
provisions applicable under law.
	 
	4.	 	This Agreement expresses and exhausts all understandings between the Employee and the Company
and any arrangements, representations, letters or understandings in the course of the
negotiations leading up to the Employee joining the Company which have not been explicitly
expressed in this Agreement shall be void and invalid.
	 
	B.	 	No Restriction on Employee’s Employment
	 
	5.	 	The Employee declares, confirms and undertakes that he is entitled to enter into this
Agreement and to assume all the undertakings hereunder, that there is no restriction,
contractual or otherwise, on his entering into this Agreement and his employment by the
Company and that his entering into this Agreement is not in breach of any other agreement or
undertaking to which he is party or to which he was party.
	 
	6.	 	The Employee hereby declares that he has no medical or other problems which are likely to
prevent him from fulfilling his undertakings to work for the Company. The Employee shall
notify the Company of any change occurring in his state of health which is relevant to his
position.
	 
	D.	 	The Employee’s Position and Duties
	 
	7.	 	Throughout his term of employment with the Company the Employee shall act toward the Company
with honesty, dedication, skill and loyalty. The Employee undertakes to devote all his work
capacity and best skills and expertise to promoting the business and affairs of the Company,
carrying out Company policy and working arrangements, complying loyally and fully with
decisions of the Company, the management and his superiors, both in Israel and abroad,
complying with Company procedures, as they may be from time to time, carrying out at all times
any tasks assigned to him and always acting loyally to

 

 

	 	 	the Company, any affiliated corporation or any corporation or individual having business
connections with the Company.
	 
	8.	 	The Employee shall act at all times in a proper manner as befits his position and status in
the Company. Without derogating from the aforesaid, the Employee undertakes not to use the
computer, internet or electronic mail for improper purposes, including receiving and
transmitting pornographic material, or any other material unrelated to his work and likely to
harm the Company, other employees or any other third party whatsoever, and not to use any
illegal software or any other external software.
	 
	9.	 	The Employee is aware of the provisions of the rules on prevention of sexual harassment
existing at the Company and undertakes to review these rules which may be found in the human
resources department.
	 
	10.	 	The Employee shall not hold any other job, either at another employer or independently, for
a fee or gratuitously, as a self employed or salaried worker or as a consultant, and shall
not assume any position in any other entity whatsoever, including a public entity, unless the
Company has provided its prior written consent to the aforesaid.
	 
	11.	 	The Employee undertakes to notify the Company immediately and without delay, of any matter or
subject in which he has a personal interest and/or which is likely to create a conflict of
interests with his functions at the Company.
	 
	12.	 	The Employee undertakes to assist the Company and any affiliated or associated corporation
and to be available to the Company, even after termination of the employment relationship with
the Company for any reason whatsoever, including for the purpose of furnishing any information
relating to his employment or the activities he undertook, including in the management of
disputes, including legal proceedings or quasi legal proceedings. Should the Company require
the services of the Employee after termination of the employment relationship with him, for
any reason whatsoever, the Employee shall be reimbursed with his expenses for carrying out the
provisions of this section.
	 
	13.	 	Immediately upon termination of his employment with the Company, for any reason whatsoever,
the Employee shall deliver and/or return to the Company any documents, charts, lists, formulae
and any other material, disks or any other magnetic media and shall carry out his departure
from the Company in coordination with his superiors, including the orderly handing over of his
position according to a timetable to be determined by his superiors and he shall hand over his
position, the documents and any matters being handled by him in an orderly manner in
accordance with Company procedures to any person as directed by the Company, all to the
satisfaction of the Company.
	 
	14.	 	After the termination of the employment relationship between the Employee and the Company,
the Employee shall deliver to his new employer a notice respecting his obligations and rights
under this Appendix. Moreover, the Employee hereby permits the Company to deliver such a
notice, provided that

 

 

	 	 	there is reasonable suspicion that the Employee is in breach of any of his undertakings under
this Appendix.
	 
	E.	 	Confidentiality
	 
	15.	 	The Employee declares that he is aware and agrees that in the course of his employment and
within the scope of a fiduciary relationship he is exposed and shall be exposed to highly
valuable professional – commercial information in all matters relating to the business and
commercial relationships of the Company, particularly in all matters relating to the business
of the Company in the areas of development, manufacture, marketing, sales and service of
communications products and solutions, including, inter alia, DCME products and VoIP products
separately, as well as in combination with SoftSwitch products. The products include
condensing and transfer of telephony signals (including, inter alia, speech, modem, fax and
video) and signal conversion and transfer over TDM networks or Packets networks (including,
inter alia, ATM, IP and Ethernet) (hereinafter: the “Company’s Field of Business”). This
information is the exclusive property of the Company and the disclosure thereof to any entity
or the use thereof by the Employee is likely to seriously damage and harm the Company.
	 
	16.	 	Therefore, the Employee declares and undertakes that as an employee of the Company and even
after the termination of his employment for any reason whatsoever, he shall keep confidential
and not disclose or deliver to any person or any entity whatsoever, apart from employees of
the Company within the scope of their work and as necessary, and he shall not publish in any
form whatsoever or make use himself or in favour of any third party, directly and/or
indirectly, whether or not the secrets, information or documents set forth below, reached him
directly or indirectly in consequence of his employment at the Company:

	 	16.1	 	trade and/or other secrets of the Company, information directly or indirectly
related to the property, business, interests, customers and suppliers of the Company and
of people and/or entities affiliated with the Company, including information on the
Company’s Field of Business, as defined above, and any information relating to and/or
connected with the above, including, but without derogating from the generality of the
above, any information which reached and/or shall reach the Employee and/or come to his
attention, directly and/or indirectly, within the course of his employment at the
Company, including information relating to customers and suppliers of the Company and/or
the manufacturing or marketing arrangements of the Company or confidential information
of third parties which the Company has received from such third parties, or information
relating to any potential or actual contacts of the Company and/or its associated,
controlling, controlled or affiliated companies with any third parties whatsoever,
including customers, suppliers, banking institutions, government bodies, private
entities, quasi public and public bodies of any kind whatsoever and any other business,
financial and commercial information, financial statements and balance sheets prior to
publication thereof, any inside information whatsoever able to affect the value of the

 

 

	 	 	 	Company shares, formulae, data, software, plans, patents, processes, inventions,
discoveries, innovations, improvements, research, any methods whatsoever, and
scientific, technical, economic, commercial or other advances and developments, and
any information on matters in which the Company is likely to engage, provided that
such information is not within the public domain or has not come into the public
domain following the breach of any of the undertakings of the Employee pursuant to
this document or under the provisions of any law, regardless of whether the aforesaid
secrets and information reached the Employee in consequence of his employment at the
Company or by any other means (hereinafter: the “Secrets / Information”),
respectively;
	 
	 	16.2	 	in addition to any document, memorandum, record, report, summary, plans, letters,
drafts, patent application documents, prototypes, models, pictures, descriptions,
sketches or other documents of the Company, including computer software and information
encrypted and/or stored in any media whatsoever with respect to all or part of the
Information and Secrets set forth above, whether drawn up by the Employee or by any
other person (hereinafter: the “Documents”).
	 
	 	16.3	 	The Employee undertakes not to make any use, including duplication, manufacture,
sale, transfer, copying and dissemination of the Information, Secrets and Documents as
defined above which is not for the purposes of the success of the Company and shall not
carry out any act which may damage the Company’s reputation.

	17.	 	The Employee certifies that all the aforesaid Secrets, Information or Documents are within
the scope of the essential business proprietary information of the Company which is not within
the public domain and cannot be easily discovered by others and whose confidentiality vests in
the Company a business advantage over its competitors and the Company is taking all reasonable
measures to keep the confidentiality thereof.
	 
	18.	 	The undertakings mentioned above shall not apply to the transfer of information with the
consent of the board of directors or with the consent of any person authorized by the board of
directors to approve the transfer of such information and passing on such information to
authorities where the disclosure of such information is required under the provisions of any
law.
	 
	F.	 	Non-Competition and Non-Solicitation
	 
	19.	 	Similarly, to the extent that the employment relationship prevails between the Company and
the Employee, the Employee undertakes not to compete with the Company and/or any company under
its control and/or with any ventures and/or activities whatsoever in which the Company is a
party, directly or indirectly, either by himself or by means of any person on his behalf,
whether as an employee, consultant, partner, contractor, distributor, shareholder and/or in
any other capacity whatsoever, either at his own initiative or at the initiative of any other
person, or by any other means whatsoever. As part of this undertaking the Employee undertakes
not to solicit, enter into an agreement with or employ,

 

 

	 	 	either directly or indirectly, at his initiative or at the initiative of any other person
whatsoever, employees of the Company, former employees, customers, former customers,
suppliers and former suppliers of the Company and/or agents with whom the Company has
conducted negotiations prior to the creation of an agreement on the date of or prior to
termination of his employment with the Company, in Israel or countries in which the Company
operates, in order to leave the Company and/or to compete with the Company, directly and/or
indirectly and/or not for the purpose of carrying out his position under this Agreement,
without obtaining the prior written consent of the Company.
	 
	20.	 	Further to the provisions of section 19 above, the Employee undertakes, that to the extent
that the employment relationship prevails between the Company and the Employee, he will not
solicit or attempt to solicit, either directly or indirectly, any other employee, consultant,
or service provider of the Company to terminate his relationship with the Company with the
object of providing his services or working for another entity.
	 
	21.	 	In light of the special status of the Employee in the Company and in light of his special
expertise, knowledge, contacts and experience in the Company’s areas of activity, the
restrictions in Sections 19 and 20 above shall also apply to the Employee for twelve (12)
months after the termination of the employment relationship between the Employee and the
Company, in any event, even if his employment has terminated at the Company’s initiative.
	 
	G.	 	Intellectual Property, Copyright and Patents
	 
	22.	 	The copyright on any invention and/or patent and/or trade secret and/or professional secret
and/or innovation whatsoever invented by the Employee and/or any of the Company employees
subordinate to him in the course of and/or following his employment at the Company is the
exclusive property right of the Company and the Employee hereby assigns any interest he may
have in such invention and/or patent and/or trade secret and/or professional secret and/or
innovation whatsoever, in favour of the Company and waives any right in the aforesaid
intellectual property, without any further remuneration, provided that he will not be required
to incur any expenses whatsoever incidental to the aforesaid assignment. The Company may
protect any invention and/or patent and/or trade secret and/or professional secret and/or
innovation whatsoever as stated above by means of registration and/or by any other means
whatsoever, whether in Israel or in any other place.
	 
	23.	 	The Employee undertakes that wherever necessary, including after the termination of his
employment for any reason whatsoever, he will sign on any document which at the discretion of
the Company is necessary in order to submit an application for patents or copyright under the
laws of Israel and/or any other foreign country in order to protect the interest of the
Company in the invention and/or patent and/or trade secret and/or professional secret and/or
any innovation whatsoever as stated above. Wherever the Company is unable, for any reason
whatsoever, after reasonable attempts, to obtain the Employee’s signature in connection with
such activities as stated in section 22 above and in this section, the Employee hereby
authorizes and appoints the Company and its

 

 

	 	 	senior officers as his lawful representatives to sign and act in his name on the documents
required to carry out the actions described in section 22 above and in this section.
	 
	24.	 	The Employee undertakes to make a record, pursuant to Company procedures, of any invention
and/or patent and/or trade secret developed by him and to notify the Company in writing of any
invention and/or patent and/or trade secret and/or any innovation whatsoever invented by him
and/or invented by Company employees subordinate to the Employee, immediately upon such
discovery.
	 
	25.	 	The Employee declares that apart from the provisions of Appendix A attached hereto, he owns
no interest in any patent and/or patent application whatsoever and/or in research activities
at the patent registration filing stage, or any material subject to copyright.
	 
	26.	 	The obligations of the Employee under this chapter shall remain in force also after the
termination of his employment at the Company and/or its successor, also with respect to
inventions invented by him during or following his term of employment at the Company.
	 
	27.	 	The provisions of this section shall also apply to any inventions discovered, developed or
invented by the Employee after termination of the employment relationship between the Employee
and the Company for any reason whatsoever, even if the Employee uses and is helped by any
Information or confidential material reaching him or coming to his attention within the scope
of his employment at the Company.
	 
	28.	 	For the removal of any doubt it is hereby clarified that the Employee may not use, and the
Employee undertakes not to use in his job any intellectual property or classified information
of any third party whatsoever (if any) unless such use is lawful.
	 
	29.	 	The provisions of this section shall also bind any person in lieu of the Employee, his
estate, heirs, successors and family members.
	 
	30.	 	Prohibition on Use of Company Name: the Employee undertakes not to make any use of
the Company name or any other name containing its name in connection with products and/or
services and/or sales promotion on his behalf and/or any other use thereof, either directly or
indirectly, apart from mention of his actual employment at the Company, either himself or by
means of others, both during the term of his employment at the Company and not for the
purposes of his job, and after the termination of his employment with the Company, unless he
has been expressly permitted in writing to do so by the Company.
	 
	H.	 	The Employee declares and certifies the following:
	 
	31.	 	His undertaking to keep confidentiality, non-competition, non-infringement of reputation and
intellectual property under this document:

 

 

	 	31.1	 	applies vis-à-vis the Company and vis-à-vis affiliated companies, subsidiaries,
associated companies and the parent company of the Company, as the case may be;
	 
	 	31.2	 	derives from the status of the Employee and taking into account his position and
all that this entails, the Employee’s terms and conditions of employment under this
Agreement have been determined, inter alia, in reliance on this undertaking;
	 
	 	31.3	 	it is fair, proportionate and reasonable, also in light of the Special
Consideration he received within the scope of his employment contract with the Company
and is designed, first and foremost, to protect the secrets and confidential information
of the Company, which are the essence of the Company’s business and commercial advantage
worthy of protection in which a huge amount of capital has been invested.
	 
	 	31.4	 	It is not contrary to any previous undertakings made by the Employee and the
Employee shall not enter into any future undertakings conflicting with his undertakings
under this Agreement.

	32.	 	The breach of any of the undertakings under this Appendix shall be contrary to the special
fiduciary relationship between the parties as employee and employer, proper trade practices
and the duty of good faith and fairness between the parties, shall harm the Company’s business
and shall constitute a fundamental breach of this contract and of the Company’s trade secrets,
confidential contacts, confidential information and protected interests.
	 
	33.	 	The Employee received special and separate consideration for his undertakings under this
Appendix which are proportionate and reasonable and do not prevent the Employee from
developing his general knowledge and professional skills in his field of occupation with
respect to any person who is not a customer or employee of the Company and without
misappropriating its trade secrets.
	 
	I.	 	Relief
	 
	34.	 	In the event of any breach of the above sections on confidentiality and/or non-competition
and/or intellectual property, the Company shall be entitled, in addition to any other remedy
or relief under the provisions of any law or under this Contract, to the following:

	 	34.1	 	to receive from the Employee the entire consideration and/or entire benefits he
obtained from the breach;
	 
	 	34.2	 	to receive from the Employee the entire Special Consideration on account of his
undertaking to refrain from competition as set forth in the Agreement, paid to him in
the course of his employment under this Agreement, plus interest and linkage
differentials under law;

 

 

	 	34.3	 	To receive damages from the Employee for any damage and/or expenses incurred by
the Company in consequence of the breach, including legal costs and attorneys fees plus
value added tax as required by law;
	 
	 	34.4	 	to set off these amounts from any amount owed by the Company to the Employee;
	 
	 	34.5	 	and also to receive any legal remedy in the form of a mandatory injunction,
prohibitory injunction, provisional, temporary or permanent relief for the prevention
and/or removal of the breach, and the Employee declares and agrees in advance to the
grant of such relief against him, since it is fair, just, reasonable and proportionate
in the particular circumstances.

	J.	 	The provisions that will apply upon termination of employment in the case of any change of
control –

	 
	[Pages to be added]	 	

	 
	K.	 	General
	 
	37.	 	If, for any reason whatsoever, any of the terms of this Agreement are held to be invalid or
unenforceable, the validity and enforceability of the other provisions of this Agreement shall
not be affected.
	 
	38.	 	The Employee shall bear any taxes originating in the rights and benefits he received under
this Agreement. It is hereby clarified that any amounts as stipulated in this Employment
Agreement are gross amounts and any legal tax and other obligatory payments, including health
insurance and national insurance payments, shall be deducted from these amounts and from any
other rights and benefits received by the Employee in the future under this Agreement.
	 
	39.	 	Any amendment to the provisions of this Agreement and the Appendices thereto shall be made in
writing only and signed by the parties.
	 
	40.	 	Any notice sent by registered mail by one party to the other party shall be deemed to have
been received by the other party three business days after having being sent, and if sent by
personal delivery or by email, it shall be deemed to have been received at the time of
delivery.
	 
	41.	 	The Employee may not transfer, assign, endorse or deliver to any other person, directly or
indirectly, his rights and obligations under this Employment Agreement, without obtaining the
prior written consent of the Company.
	 
	42.	 	The Company may transfer, assign or endorse all or part of the Employee’s rights and
obligations to any other person, at its discretion, provided that the rights of the Employee
are saved.

 

 

	 
	43.	 	The Employment Agreement and the employment relationship shall be governed solely by Israeli
law, including the provisions of section J and the venue shall be the competent court in
Israel.
	 	 	

	44.	 	The addresses of the parties are as set forth in the Preamble to the Personal Employment
Agreement.

Employee Confirmation

I hereby confirm that I was given an opportunity to consult with an attorney on my behalf, I have
thoroughly read this Agreement and its Appendices, I fully understand their content, significance
and meaning, I agree to everything stated therein and undertake to fully comply with all my
obligations thereunder.

	 	 	 	 	 
	January 1, 2003

	 	Pinchas Reich
	 	( — )
	 
	 	 	 	 
	 

	 	 
	 	 
	Date

	 	Name of Employee
	 	Signature of Employee

 

 

Appendix B

General Certificate on Employer Payments to Provident Funds and Insurance Funds in Lieu of
Severance Pay

Under the Severance Pay Law, 5723-1963

	 	 	By virtue of my authority under section 14 of the Severance Pay Law, 5723-19631
(hereinafter: the “Law”) I certify that payments paid by an employer commencing on the date of
publication of this certificate on account of its employees to a comprehensive pension benefit fund
which is not an insurance fund as defined in the Income Tax (Rules on Approval and Management of
Provident Funds) Regulations, 5724 – 19642 (hereinafter: “Pension Fund”) or into an
executive insurance plan including the option of an insurance pension fund or the combination of
payments into a pension fund and into a plan which is not for a pension in such an insurance fund
(hereinafter: “Insurance Fund”) including payments paid by a combination of payments to a Pension
Fund and an Insurance Fund, whether or not the Insurance Fund has a pension plan (hereinafter: the
“Employer’s Payments”), shall be in lieu of severance pay due to such employee in respect of the
salary from which such payments were made and for the period such payments were made (hereinafter:
the “Exempt Salary”), provided that all of the following conditions have been satisfied:

	 	(1)	Employer Payments

	 	(a)	 	to the Pension Fund are not less than 141/3% of the Exempt
Salary or 12% of the Exempt Salary if the employer pays for his employee in addition
thereto also payments to supplement severance pay to a provident fund for severance pay
or to an Insurance Fund in the employee’s name in the amount of
21/3% of the Exempt Salary. Where the employer has not paid the
aforesaid 21/3% in addition to the aforesaid 12%, his payments
shall only be in lieu of 72% of the employee’s severance pay;
	 
	 	(b)	 	to the Insurance Fund are not less than one of the following:

	 	(1)	 	131/3% of the Exempt Salary, if the employer
pays for his employee in addition thereto also payments to secure monthly income
in the event of disability, in a plan approved by the Commissioner of the Capital
Market, Insurance and Savings Department of the Ministry of Finance, in an amount
required to secure at least 75% of the Exempt Salary or in an amount of
21/2% of the Exempt Salary, according to the lower of the
two (hereinafter: “Disability Insurance”);
	 
	 	(2)	 	11% of the Exempt Salary, if the employer paid, in addition, a
payment to the Disability Insurance, and in such case the Employer’s Payments
shall only be in lieu of 72% of the Employee’s severance pay. Where the employer
has paid in

 

			
	1	 	Sefer HaChukkim 5723, page 136
	 
	2	 	Kovetz Hatakanot, page 1302

 

 

	 	 	 	addition to the aforesaid payments to supplement severance pay to a provident
fund for severance pay or to an Insurance Fund in the employee’s name in the
amount of 21/3% of the Exempt Salary, the Employer’s
Payments shall be in lieu of 100% of the employee’s severance pay.

	(2)	 	No later than three months after the commencement of the Employer’s Payments, a written
agreement was drawn up between the employer and the employee including –

	(1)	 	the employee’s consent to the arrangement pursuant to this certificate in a form
setting forth the Employer’s Payments, the Pension Fund and Insurance Fund, as the case
may be. The aforesaid agreement shall also include the form of this certificate;
	 
	(2)	 	the employer has made a prior waiver of any right which it may have to any
reimbursement of monies from its Payments, unless the employee’s right to severance pay
under judgment by virtue of sections 16 or 17 of the Law has been denied, and it has
been denied, or the employee has withdrawn monies from the Pension Fund or Insurance
Fund other than by reason of an entitling event. For this purpose, “entitling event”
means death, disability or retirement at or after the age of 60.

	(3)	 	This certificate shall not derogate from the employee’s right to severance pay under the Law,
a collective agreement, expansion order or employment contract, on account of any salary
beyond the Exempt Salary.

15 Sivan, 5758 (June 9, 1998)

Eliyahu Ishay

	 	 	Minister of Labor and Social Welfareexv10w40

 

Exhibit 10.40

	 	 	 
	SERVICES CONTRACT

	 	ДОГОВОР
ОБ
ОКАЗАНИИ
	No. VERAZ-sub-2005

	 	УСЛУГ No VERAZ-sub-2005

	 	 	 
	 
	 	 
	This Services Contract (hereinafter referred
to as the “Contract”) is made in Moscow, Russia on
October 13, 2005 by and between:

	 	Настоящий Договор об
оказании услуг (далее
– «Договор») заключен в г.
Москве «13» октября 2005 года
между:
	 
	 	 
	Veraz Networks, Ltd, a legal entity formed and
existing under the laws of Israel, hereinafter
referred to as “Contractor”, represented by Israel
Zoar, General Director,

	 	“Вераз Нетворкс
Лимитед”, юридическим
лицом,
зарегистрированным и
действующим в
соответствии с
законодательством
Израиля, далее
«Подрядчик», в лице г-на
Израеля Зоара,
Генерального
директора

	 
	 	 
	and

	 	и

	 
	 	 
	LLC ECI Telecom 2005, a legal entity formed and
existing under the laws of Russian Federation,
hereinafter referred to as “Client”, represented
by Amos Lahat, acting pursuant to Charter.

	 	ООО “ЕСИ Телеком 2005”,
юридическим лицом,
зарегистрированным и
действующим в
соответствии с
законодательством
Российской Федерации,
далее «Заказчик», в лице
Амоса Лахата,
действующим на
основании Устава.
	 
	 	 
	WHEREAS the Client conducts sales of installation
and maintenance services of telecommunication
equipment, developed and manufactured by the
Contractor (hereinafter referred to as the
“Products”) to its customers in Russia; While, in
executing such post distribution support services
in connection with Products is provided by the
Contractor;

	 	ПОСКОЛЬКУ Заказчик
осуществляет продажи
клиентам в России
услуг по пуско-наладке
и сервисному
обслуживанию
телекоммуникационного оборудования,
разработанного и
произведенного
Подрядчиком (далее
«Оборудование»); Наряду
с этим, Подрядчик
предоставляет услуги
по послепродажной
поддержке
Оборудования;

	 
	 	 
	WHEREAS the Contractor provides post distribution
support services to the Client with respect to
sales of the Products;

	 	ПОСКОЛЬКУ Подрядчик
обеспечивает
послепродажную
поддержку
Оборудования
реализованного
клиентам Заказчика;

	 
	 	 
	NOW, THEREFORE, in consideration of the premises
set forth above and mutual covenants contained
herein,

	 	С УЧЕТОМ
ВЫШЕИЗЛОЖЕННОГО, в
отношении указанных
выше вводных
положений и
изложенных далее
взаимных
обязательств,

	 
	 	 
	
The Parties hereby agree as follows:

	 	Стороны заключили
соглашение
о нижеследующем:
	 
	 	 
	ARTICLE 1 DEFINITIONS

	 	СТАТЬЯ 1 ОПРЕДЕЛЕНИЯ
	 
	 	 
	a) Contract means this Contract including all
Appendices and all Assignments thereof;

	 	a) Договор означает
настоящий Договор
включая все
прилагающиеся к нему
Приложения и Задания;
	 
	 	 
	b) Assignment means document supplementing this
Contract where terms of services, payment and a
timetable are determined;

	 	б) Задание означает
документ,
прилагающийся
данному Договору с
указанием условия
оказания услуг, оплаты
и графиком времени для
оказания услуг;

	 
	 	 
	c) Client means LLC ECI Telecom 2005;

	 	в) Заказчик означает
“ООО ЕСИ Телеком 2005”;

1

 

	 	 	 
	d) Telecommunication Equipment means equipment
manufactured by Veraz Networks Ltd. And its
subsidiaries, and distributed in the territory of
Russian Federation;

	 	г)
Телекоммуникационное оборудование
означает
оборудование,
произведенное “Вераз
Нетворкс Лимитед” и
его дочерних компаний,
и реализованное на
территории
Российской Федерации;

	 
	 	 
	e) LLC Veraz Networks Ltd. means the legal entity
formed and existing under the laws of Israel and
located at 30 Hasivim St. Petah Tikva, 49133
Israel;

	 	д) “Вераз Нетворкс
Лимитед” означает
юридическое лицо,
зарегистрированное и

действующее в
соответствии с
законодательством
Израиля находящееся
по адресу Хасивим 30,
Пета Тиква, 49133, Израиль;

	 
	 	 
	f) LLC ECI Telecom 2005 means the legal entity
formed and existing under the laws of Russian
Federation and located at 115035, Moscow,
Sadovnicheskaya nab. 77, bld. 1

	 	е) “ООО ЕСИ Телеком 2005”
означает юридическое
лицо,
зарегистрированное и
действующее в
соответствии с
законодательством
Российской Федерации
находящееся
по адресу: 115035, г. Москва,
Садовническая наб., д. 77,
стр.1;
	 
	 	 
	g) Remuneration means amount of consideration to
be paid by Client (ECI Telecom 2005) to
Contractor (Veraz Networks Ltd) for services
provided hereunder by Contractor (Veraz Networks,
Ltd.) to Client (ECI Telecom 2005) or to
Customers, which amount is defined in the
Assignment;

	 	ж) Оплата означает
сумма платежа,
оплачиваемая
Заказчиком (ЕСИ
Телеком 2005) Подрядчику
(“Вераз Нетворкс
Лимитед”) за услуги,
предоставленные
Подрядчиком (Вераз
Нетворкс Лимитед)
Заказчику (“ЕСИ
Телеком 2005”) или клиенту,
сумма которого
определяется в
Задании к настоящему
Договору;
	 
	 	 
	h) Effective Date means the date of signing
current Contract;

	 	и) Дата вступления
Договора в силу
означает дата
подписания данного
Договора;
	 
	 	 
	i) US Dollars means the lawful currency of the
United States of America

	 	к) Доллар США означает
законное средство
платежа на территории
Соединенных Штатов
Америки.
	 
	 	 
	1.1 Any reference in this Contract to a “Party”
shall mean either Veraz Networks Ltd. or LLC ECI
Telecom 2005 and any reference to the “Parties”
shall mean both Veraz Networks Ltd. and LLC ECI
Telecom 2005.

	 	1.1 Под выражением
«Сторона» в настоящем
Договоре следует
понимать либо “Вераз
Нетворкс Лимитед”,
либо “ООО ЕСИ Телеком
2005”, и под выражением
«Стороны» следует
понимать “Вераз
Нетворкс Лимитед” и
“ООО ЕСИ Телеком 2005”.
	 
	 	 
	ARTICLE 2 SUBJECT MATTER OF THE CONTRACT

	 	СТАТЬЯ 2 ПРЕДМЕТ ДОГОВОРА
	 
	 	 
	2.1 Upon the terms and subject to the conditions
of this Contract, the Contractor shall provide the
Client with a package of post distribution Product
support services (hereinafter referred to as the
“Services”) including but not limited to the
following:

	 	2.1 Подрядчик на
основании и в
соответствии с
условиями настоящего
Договора обязуется
предоставить
Заказчику комплекс
услуг по
послепродажному
обслуживанию
Оборудования (далее
«Услуги»), включая, но не
ограничиваясь
следующим:
	 
	 	 
	2.1.1 Post warranty telephone consultations

	 	2.1.1 Послегарантийные
телефонные
консультации

2

 

	 	 	 
	2.1.1.1 The Contractor shall provide technical
support by means of telephone consultation in
connection with the Products purchased by the
Client’s customers on twenty four hours seven days
a week basis.

	 	2.1.1.1 Подрядчик обязуется
предоставлять
техническую
поддержку в отношении
Оборудования
приобретенного
клиентами Заказчика
на круглосуточной
основе в течение
двадцати четырех
часов в сутки семь
дней в неделю.
	 
	 	 
	2.1.1.2 The Contractor shall ensure operator’s
reply in the form of technical support to Client’s
customers calls.

	 	2.1.1.2 Подрядчик обязуется
обеспечить ответ
операторов в форме
технической
поддержки звонков
клиентов Заказчика.
	 
	 	 
	2.1.2 Post warranty Remote access to the Client’s
customers equipment.

	 	2.1.2 Послегарантийное
удаленное
подключение к
Оборудованию
клиентов Заказчика.
	 
	 	 
	2.1.2.1 Upon the Client’s request the Contractor
shall provide remote access to the Client’s
customer software for the purpose of diagnostics
and repair.

	 	2.1.2.1 По требованию
клиента Подрядчик
обязуется обеспечить
удаленное
подключение к
программному
обеспечению клиентов
Заказчика для целей
диагностики и ремонта.
	 
	 	 
	2.1.2.2 The Contractor shall provide qualified
engineers and tools to solve problems arising in
connection to the software.

	 	2.1.2.2 Подрядчик обязуется
обеспечить решение
проблем в отношении
программного
обеспечения с помощью
квалифицированных
инженеров и
соответствующих
средств.
	 
	 	 
	2.1.3 Contractor’s specialists visits

	 	2.1.3 Выезд специалистов
Подрядчика
	 
	 	 
	2.1.3.1 Upon request by the Client’s customer the
Contractor shall arrange a qualified specialist
visit for the purpose of resolving difficult and
non standard problems arising in connection with
the use of the Products.

	 	2.1.3.1 По требованию
клиентов Заказчика
Подрядчик обязуется
обеспечить выезд
квалифицированных
специалистов для
целей устранения
сложных и
нестандартных
ситуаций возникающих
в процессе
пользования
Оборудованием.
	 
	 	 
	2.1.4 Post warranty repair of defective cards

	 	2.1.4 Послегарантийный
ремонт неисправных
плат
	 
	 	 
	2.1.4.1 Contractor undertakes to carry out the
repair of the defective cards within turn around
time of not more than 35 (thirty five) days from
arrival of cards to Israel airport until shipment
of the repaired cards by Contractor to Russia
(shipment shall be considered completed at the
time of landing of the goods in Russia).

	 	2.1.4.1 Подрядчик обязуется
выполнить работы по
ремонту неисправных
плат полностью в
течение не более 35
(тридцати пяти) дней с
момента прибытия плат
в аэропорт Израиля до
отправки
отремонтированных
плат Подрядчиком в
Российскую Федерацию
(отправка является
осуществленной в
момент доставки
товаров на территорию
Российской Федерации).
	 
	 	 
	2.1.4.2 Each Party will be responsible for the
costs relating to the shipping of the cards, their
customs clearance and all other expenses in the
jurisdiction of the relevant Party.

	 	2.1.4.2 Каждая Сторона
является
ответственной за
стоимость отправки
карт, таможенной
отчистки и иные
расходы в стране
нахождения этой
Стороны.
	 
	 	 
	2.1.5 Training of Client’s customers personnel

	 	2.1.5 Обучение персонала
клиентов Заказчика
	 
	 	 
	2.1.5.1 Upon request and within the terms

	 	2.1.5.1 По требованию и в
соответствии с

3

 

	 	 	 
	established in the Assignment the Contractor shall
arrange specialist visit to the Russian Federation
for the purpose of conducting training seminars
for Client’s customer’s personnel in connection
with the use of the Products.

	 	условиями
установленными в
Задании к настоящему
Договору Подрядчик
обязуется обеспечить
командировку
специалиста в
Российскую Федерацию
для проведения
образовательных
семинаров клиентам
Заказчика в связи с
использованием
Оборудования.
	 
	 	 
	2.1.6 Other services provided by the Contractor

	 	2.1.6 Другие услуги
предоставляемые
Подрядчиком
	 
	 	 
	2.1.6.1 The Contractor shall provide the Client’s
customers with any complementary services that may
be upon the Client’s request required in
connection with the use of the Products.

	 	2.1.6.1 Подрядчик обязуется
обеспечить клиентов
Заказчика другими
услугами в
соответствии с
дополнительными
запросами Заказчика в
отношении
использования
Оборудования.
	 
	 	 
	2.2 Services shall be provided by the Contractor
to the Client’s customers on the basis of a
corresponding Assignment to the current Contract.

	 	2.2 Услуги должны
предоставляются
Подрядчиком клиентам
Заказчика на основе
соответствующего
Задания к настоящему
Договору.
	 
	 	 
	2.3 Specific Services provided by the Contractor
to the Client shall be stipulated in the
Assignment to this Contract.

	 	2.3 Предоставляемый
Подрядчиком
Заказчику вид Услуг
должен быть определен
в Заданиях к
настоящему Договору.
	 
	 	 
	2.4 Assignment shall be agreed upon and signed by
the Parties in connection to the Services to be
provided by the Contractor to the Client’s
customers.

	 	2.4 Задания содержащие
условия в отношении
Услуг
предоставляемых
Подрядчиком
Заказчику должны быть
согласованы и
подписаны Сторонами.
	 
	 	 
	2.5 The Assignment shall contain details of the
Services to be provided by the Contractor to the
Client’s customers within the scope determined in
the Article 2.1 above, the amount of remuneration
and a timetable for the provision of such
Services.

	 	2.5 Задания должны
содержать условия
предоставления
Подрядчиком Услуг
клиентам Заказчика в
соответствии с
положением Статьи 2.1
настоящего Договора, а
также сумму оплаты и
временной график для
оказания Услуг.
	 
	 	 
	2.6 Services determined in the Article 2.1 shall
be provided according to the terms determined by
the Parties in this Contract, Appendices and
Assignments thereof.

	 	2.6 Услуги указанные в
Статье 2.1 должны быть
предоставлены в
соответствии с
условиями
установленными
Сторонами в настоящем
Договоре, Приложениях
и Заданиях к нему.
	 
	 	 
	ARTICLE 3 PAYMENT

	 	СТАТЬЯ 3 ОПЛАТА
	 
	 	 
	3.1 In payment for the Services, specified in the
Article 2.1 the amount of remuneration that shall
be paid by the Client to Contractor is determined
in the Assignment to the current Contract.

	 	3.1 При оплате за Услуги, в
соответствии со
Статьей 2.1 сумма оплаты
Услуг Подрядчика
Заказчиком
определяется в
Задании к настоящему
Договору.
	 
	 	 
	3.2 The amount of remuneration for Services
provided by the Contractor to the Client shall be
paid against the invoice presented for payment by
the Contractor to the Client. The payment shall be
made up to 90 (ninety) calendar days of receiving

	 	3.2 Сумма оплаты за
Услуги,
предоставленные
Подрядчиком
Заказчику должна быть
уплачена в
соответствии с
выставленным
Подрядчиком счетом.
Оплата должна быть
произведена в течение
90 (девяноста)

4

 

	 	 	 
	the invoice.

	 	календарных дней с
момента получения
счета.
	 
	 	 
	3.3 The invoice shall identify the particular
Services identified in the Article 2.1 of the
current Contract that were provided and place
where such Services were provided by the
Contractor to the Client.

	 	3.3 Счет должен
содержать описание
предоставленных
Услуг в соответствие
со Статьей 2.1
настоящего Договора и
место оказания Услуг
Подрядчиком
Заказчику.
	 
	 	 
	3.4 The payment by the Client to Contractor shall
be made by wire transfer in US Dollars to the
account specified in the Article 13 of the current
Contract.

	 	3.4 Оплата Заказчиком
осуществляется
посредством перевода
средств в Долларах США
на банковский счет
Подрядчика в
соответствии со
Статьей 13 настоящего
Договора.
	 
	 	 
	ARTICLE 4 CONTRACT VALIDITY

	 	СТАТЬЯ 4 СРОК ДЕЙСТВИЯ ДОГОВОРА
	 
	 	 
	4.1 This Contract shall become effective on the
Effective Date and remain valid until termination
by either Party.

	 	4.1 Настоящий Договор
вступает в силу в Дату
вступления Договора в
силу и действует до
его прекращения
Сторонами.
	 
	 	 
	ARTICLE 5 RIGHTS AND OBLIGATIONS OF THE PARTIES

	 	СТАТЬЯ 5 ПРАВА И ОБЯЗАННОСТИ СТОРОН
	 
	 	 
	5.1 Contractor’s liability:

	 	5.1 Ответственность
Подрядчика:
	 
	 	 
	5.1.1 The Contractor bears responsibility for
causing damage to the Products as a result of
providing Services as defined in the Article 2.1
of the current Contract above due to the
negligence on its part.

	 	5.1.1 Подрядчик несёт
ответственность за
повреждение
Оборудования в период
оказания Услуг,
определенных в Статье
2.1 настоящего Договора
вызванное
халатностью со
стороны Подрядчика.
	 
	 	 
	5.1.2 The Contractor shall ensure timely and full
provision of Services according to the Article 2.1
of the Contract and within the terms of the
Assignment agreed upon by the Parties.

	 	5.1.2 Подрядчик обязан
обеспечить
своевременное и
полное
предоставление Услуг
в соответствии со
Статьей 2.1 настоящего
Договора и в
соответствии с
условиями Задания
согласованного
Сторонами.
	 
	 	 
	5.1.3 Where applicable, according to the terms of
the Assignment to the current Contract in case of
a breach by the Contractor of the Assignment, the
Client shall be entitled to request and Contractor
shall remunerate Client of forfeit in the amount
of 0,05 % of the cost of the Services for each
day of delay but not more than 1 % of the total
cost of the Services. Payment of a forfeit does
not release the Contractor from its obligations to
provide the Services within the scope as
identified in the Assignment.

	 	5.1.3 Если применимо, в
соответствии с
условиями Задания к
настоящему Договору, в
случае нарушения
Подрядчиком условий
Задания, Заказчик
вправе потребовать, а
Подрядчик должен
оплатить Заказчику
неустойку в размере 0,05 %
от стоимости Услуг за
каждый календарный
день задержки, но не
более 1 % от общей
стоимости Услуг.
Уплата неустойки не
освобождает
Подрядчика от
предоставления Услуг
в полном объёме,
оговорённых в Задании.
	 
	 	 
	5.1.4 LIMITATION OF LIABILITY. EXCEPT FOR;
	 	 
	(i) PERSONAL INJURY OR TANGIBLE PROPERTY DAMAGE 

WHICH DIRECTLY RESULTS FROM THE NEGLIGENT OR
	 	 

5

 

	 	 	 
	INTENTIONALLY WRONGFUL ACTS OR OMISSIONS OF EITHER
PARTY;
	 	 
	(ii) DAMAGES RESULTING FROM MISUSE OR
MISAPPROPRIATION OF CONTRACTOR’S SOFTWARE OR OTHER
INTELLECTURAL PROPERTY RIGHTS; OR
	 	 
	(iii) DAMAGES FOR EITHER PARTY’S FAILURE TO
PROTECT THE OTHER’S CONFIDENTIAL OR PROPRIETARY
INFORMATION, IN NO EVENT SHALL EITHER PARTY BE
LIABLE FOR INCIDENTAL, INDIRECT, SPECIAL,
EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES
ARISING FROM CONNECTED WITH OR RELATING TO THIS
AGREEMENT, WHETHER OR NOT SUCH DAMAGES ARE
FORESEEABLE AND WHETHER OR NOT A PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
WITHOUT LIMITING AND SUBJECT TO THE ABOVE IT IS
AGREED THAT EACH PARTY’S TOTAL LIABILITY TOWARDS
THE OTHER PARTY FOR ANY DAMAGES WHATSOEVER SHALL
NOT EXCEED THE TOTAL CHARGES FOR SERVICES PAID OR
PAYABLE UNDER THE SPECIFIC ASSIGNMENT RELEVANT TO
THE DAMAGE DURING THE RELEVANT CONTRACT YEAR.
	 	 
	 
	 	 
	5.2 Client’s obligations:

	 	5.2 Ответственность
Заказчика:
	 
	 	 
	5.2.1 The Client shall ensure the full and timely
payment for Services provided by the Contractor
within the terms of the current Contract and
Assignment.

	 	5.2.1 Заказчик обязуется, в
соответствии с
условиями данного
Договора и Задания,
обеспечить полную и
своевременную оплату
за Услуги
обеспеченные
Подрядчиком.
	 
	 	 
	5.2.2 Where applicable, in case of a breach by the
Client of the terms of payment for Services as
defined in the Article 2.1 of the current
Contract, Contractor shall be entitled to request
and Client shall remunerate Contractor of forfeit
in the amount of 0,05 % of the cost of the
Services for each calendar day of delay but not
more than 1 % of the total cost of the Services.
Payment of a forfeit does not release the Client
from its obligations to make the full payment for
the Services provided within the scope as
identified in the Assignment.

	 	5.2.2 Если применимо, в
случае нарушения
Заказчиком условий
оплаты Услуг
определенных а Статье
2.1 настоящего Договора,
Подрядчик вправе
потребовать, а
Заказчик должен
оплатить Подрядчику
неустойку в размере 0,05 %
от стоимости Услуг за
каждый календарный
день задержки, но не
более 1 % от общей
стоимости Услуг.
Уплата неустойки не
освобождает
Заказчика от оплаты
Услуг в полном объёме,
оговорённых в Задании.
	 
	 	 
	ARTICLE 6 NO PARTNERSHIP

	 	СТАТЬЯ
6 НЕВОЗМОЖНОСТЬ СОЗДАНИЯ ТОВАРИЩЕСТВА
	 
	 	 
	6.1 No aspects of this Contract or any document
referred to herein shall make or be interpreted as
making either Party a partner or agent of the
other Party, nor shall the execution, completion
or implementation of this Contract confer on any
Party 
	 	6.1 Ни одна часть
настоящего Договора
или другого документа
в отношении которого
сделана ссылка в
настоящем Договоре не
должна понимать или
трактоваться как
уполномочивающая
любую из Сторон

6

 

	 	 	 
	hereto any power to bind or impose on the
other Party any obligation to any third party
 other than what follows from the ordinary conduct
of sales of the Services hereunder.

	 	действовать в
качестве участника
товарищества или
агента другой Стороны.
Исполнение
настоящего Договора
не наделяет ни одну из
Сторон полномочиями и
для создания
обязательств другой
Стороны в отношении
третьих лиц кроме как
возникающих из
обычных условий
предоставления Услуг
по настоящему
Договору.
	 
	 	 
	ARTICLE 7 CONFIDENTIALITY

	 	СТАТЬЯ 7 КОНФИДЕНЦИАЛЬНОСТЬ
	 
	 	 
	7.1 The Parties shall keep secret and confidential:

	 	7.1 Стороны обязуются
хранить в тайне:
	 
	 	 
	a) The content of this Contract; and

	 	a) Содержание
настоящего Договора; и
	 
	 	 
	b) All data and information acquired or received
under this Contract, including without limitation
all notices received in relation to this Contract
the terms of this Contract and any of the other
agreements or documents referred to herein and/or
required hereby and touching or concerning the
Parties and subject matter to this Contract,

	 	б) Любую информацию,
приобретенную или
полученную по
настоящему Договору
включая но, не
ограничиваясь
извещениями,
полученными в
отношении настоящего
Договора или условий
настоящего Договора и
любого другого
договора или
документа, в отношении
которого сделана
ссылка в настоящем
Договоре и/или
требуемая настоящим и
затрагивающее или в
отношении Сторон и
предмета Договора.
	 
	 	 
	during the continuance of this Contract and for a
period of 5 (five) years thereafter
notwithstanding any termination hereof and
irrespective of the reason for the termination
hereof and neither Party shall divulge any of the
same in any manner to any third party for any
purpose whatsoever, or in any manner directly or
indirectly disclose or in any way hint at the
matters referred to herein in any manner which may
lead to the drawing by any third party of any
inference as to or touching or concerning the
subject matter hereof without the prior written
consent of the other Party.

	 	в течение срока
действия настоящего
Договора и в течение 5
(пяти) лет после
окончания срока
действия Договора;
несмотря на любые
причины расторжения
ни одна из Сторон не
должна разглашать
вышеуказанное
третьим лицам ввиду
любых причин или любым
методом прямо или
косвенно
обнародовать или
любым способом давать
понять о содержании,
что позволило бы
третьим лицам сделать
заключение о предмете
настоящего Договора
без наличия
разрешения другой
Стороны.
	 
	 	 
	ARTICLE 8 TERMINATION

	 	ARTICLE 8 ПРЕКРАЩЕНИЕ
	 
	 	 
	8.1 The Parties shall be entitled to terminate
this Contract at any time by the mutual written
agreement. Such termination thereunder shall not
give rise to any liability on the part of either
Party.

	 	8.1 Стороны имеют право
расторгнуть
настоящий Договор в
любое время по
взаимному
письменному согласию.
Такое расторжение
Договора не является
основанием
возникновения
дополнительных
обязательств любой из
Сторон.
	 
	 	 
	8.2 Termination of the Contract by written
agreement of the Parties shall be initiated by
notice issued by one Party to the other at least
30 (thirty) days prior to such termination.

	 	8.2 Процесс расторжение
Договора по взаимному
письменному согласию
Сторон посредством
направления
предложения о
расторжении Договора
одной Стороной
инициируется другой
не позднее 30 (тридцати)
дней до момента
расторжения.

7

 

	 	 	 
	ARTICLE 9 VARIATIONS

	 	СТАТЬЯ 9 ИЗМЕНЕНИЯ
	 
	 	 
	9.1 This Contract may be varied only by a written
document in the form of Appendix to the Contract
agreed upon and signed by the both Parties.

	 	9.1 Настоящий Договор
может быть изменен
только посредством
письменного
документа в форме
Приложения к Договору
согласованного и
подписанного обеими
Сторонами.
	 
	 	 
	ARTICLE 10 DISPUTE RESOLUTION

	 	СТАТЬЯ 10 РАЗРЕШЕНИЕ СПОРОВ
	 
	 	 
	10.1 All the disputes or controversy arising as a
result of the current Contract execution shall be
settled by way of negotiations between the
Parties.

	 	10.1 Стороны обязуются
приложить все
возможные усилия для
разрешения возможных
споров и разногласий,
возникающих в
отношении настоящего
Договора путем
переговоров.
	 
	 	 
	ARTICLE 11 FORCE MAJEURE

	 	СТАТЬЯ 11 ФОРС-МАЖОР
	 
	 	 
	11.1 Neither Party shall be liable for non-
performance or improper performance of any
obligation hereunder, if such non-performance or
improper performance was caused by Force Majeure.
Force Majeure shall mean the events, which neither
Party can foresee or prevent, including: fire,
explosions (except those resulting from the
violation of safety rules), natural calamities,
wars, embargoes, strikes, insurrections and riots.

	 	11.1 Стороны не несут
ответственности за
неисполнение или
ненадлежащее
исполнение
обязательств по
настоящему Договору,
если надлежащее
исполнение оказалось
невозможным
вследствие
Непреодолимой Силы.
Под Непреодолимой
Силой понимаются
обстоятельства,
которые Стороны не
могут предвидеть или
предотвратить, в том
числе: пожары, взрывы
(за исключением
случаев нарушения
техники безопасности),
природные катастрофы,
войны, эмбарго,
забастовки, восстания
и мятежи.
	 
	 	 
	11.2 The Party affected by a Force Majeure event
shall advise the other Party of the occurrence and
cessation of the Force Majeure event within ten
(10) days from the occurrence and the cessation
respectively. If a Party fails to dispatch such a
notification or has dispatched it too late, it
shall have no right to refer to Force Majeure as
excuse.

	 	11.2 Сторона, находящаяся
под влиянием
обстоятельств
Непреодолимой Силы,
обязана в
десятидневный срок с
момента
возникновения или
прекращения
обстоятельств
Непреодолимой Силы
уведомить другую
Сторону
соответственно о
возникновении или
прекращении таких
обстоятельств.
Сторона, не
направившая в срок
уведомление, не имеет
права ссылаться на
обстоятельства
Непреодолимой Силы в
обоснование
ненадлежащего
исполнения своих
обязательств.
	 
	 	 
	11.3 The burden of proving that the occurrence of
a Force Majeure event impaired the ability of a
Party to perform its obligations under this
Contract shall be with the Party claiming to be
affected by such an event.

	 	11.3 Сторона, не
исполнившая или
ненадлежащим образом
исполнившая свои
обязательства по
настоящему Договору
вследствие
Непреодолимой Силы,
обязана доказать, что
ненадлежащее
исполнение явилось
следствием
наступления
обстоятельств
Непреодолимой Силы.
	 
	 	 
	11.4 If any such Force Majeure event has affected

	 	11.4 Если вследствие
Непреодолимой силы

8

 

	 	 	 
	the ability of either Party to perform its
obligations within the term set by this Contract,
the set term shall be extended by a period equal
to that during which such event and its effects
remain in force.

	 	надлежащее
исполнение
обязательств обеими
Сторонами в срок
установленный
настоящим Договором
невозможно, действие
Договора
продлевается на срок,
в течение которого
существуют
обстоятельства
Непреодолимой Силы и
их последствия.
	 
	 	 
	ARTICLE 12 SEVERABILITY

	 	СТАТЬЯ 12 ДЕЛИМОСТЬ СТАТЕЙ ДОГОВОРА
	 
	 	 
	12.1 If any provision of this Contract is held to
be invalid, illegal or unenforceable, the
invalidity, illegality or unenforceability will
not affect any other provision of this Contract,
and this Contract will be construed as if the
invalid, illegal or unenforceable provision had
never been contained herein unless the deletion of
the provision would result in such material change
to cause the completion of the Contract herein to
be unreasonable or contravening the law of the
Russian Federation.

	 	12.1 В случае
недействительности,
незаконности или
отсутствие исковой
силы одного из
положений настоящего
Договора,
недействительность,
незаконность или
отсутствие исковой
силы не окажет
воздействия на
действительность,
законность и наличие
исковой силы других
положений настоящего
Договора; в таком
случае настоящий
Договор должен
толковаться, таким
образом, как если бы
такое
недействительное,
незаконное или не
имеющее исковой силы
положение
отсутствовало в
Договоре изначально,
за исключением, когда
удаление такого
положения приведет к
изменениям, ввиду
которых дальнейшее
исполнение
настоящего Договора
будет являться
неразумным или
противоречащим
законодательству
Российской Федерации.
	 
	 	 
	ARTICLE 13 ADDRESSES AND BANKING DETAILS OF THE PARTIES

	 	СТАТЬЯ 13 АДРЕСА И БАНКОВСКИЕ
РЕКВИЗИТЫ СТОРОН
	 
	 	 
	13.1 Veraz Networks Ltd.:

	 	13.1 “Вераз Нетворкс
Лимитед”:
	30 Hasivim Street

	 	Хасивим 30,

	Petah Tikva

	 	Петах Тиква

	Israel

	 	Израиль
	 
	 	 
	Bank details:

	 	Банковские реквизиты:
	Bank Hapoalim Branch 600

	 	Отделение Банка
Хаполиам 600

	50 Rothschild Boulevard

	 	Бульвар Ротсчилд 50

	Tel-Aviv, Israel

	 	Тель-Авив, Израиль

	 
	 	 
	Account No. 699455

	 	Счет
No -     699455

	SWIFT
-       POALILIT

	 	СВИФТ
-    POALILIT
	 
	 	 
	13.2 LLC ECI Telecom 2005:

	 	13.2 “ООО ЕСИ Телеком 2005”:
	INN 7705669675

	 	ИНН 7705669675
	115184, Moscow, Bolshaya Tatarskaya, 29

	 	115184, г. Москва, ул. Большая
Татарская,
д. 29

	 
	 	 
	Bank details:

	 	Банковские реквизиты:
	“BNP PARIBAS” ZAO

	 	ЗАО “БНП ПАРИБА”

9

 

	 	 	 
	SWIFT BNPARUMM
	 	SWIFT BNPARUMM
	bank’s code (BIK) 044525185

	 	код банка (БИК) 044525185
	USD a/c 40702840800000276002

	 	счет в долл. США 40702840800000276002
	Bank
address: Bolshoy Gnezdnekovsky pereulok, 1,

 Building 2, 125009 Moscow, Russia

	 	Адрес
банка: Большой Гнездниковский
переулок, 1,
Здание 2. 125009 Москва, Россия
	 
	 	 
	Correspondent a/c for USD:

	 	Банк-корреспондент по
долл. США:
	Account # 10348500163

	 	счет # 10348500163

	with BNP PARIBAS U.S.A. — NEW YORK

	 	в BNP PARIBAS U.S.A. — NEW YORK 
	BRANCH, NEW YORK, USA,

	 	BRANCH, NEW YORK, USA,
	SWIFT ID- BNPAUS3N

	 	SWIFT ID- BNPAUS3N
	 
	 	 
	ARTICLE 14 MISCELLANEOUS

	 	СТАТЬЯ 14 ПРОЧИЕ УСЛОВИЯ
	 
	 	 
	14.1 This Contract is the Contract referred to in
Appendices and Assignments, which are an integral
part of this Contract.

	 	14.1 Настоящий Договор
представляет собой
Договор, на который
сделаны ссылки в
Приложениях и
Заданиях, и которые
являются
неотъемлемой частью
настоящего Договора.
	 
	 	 
	14.2 Headings to Articles are for information and
convenience only and shall not form part of the
operative provisions of, and shall be ignored in
construing, this Contract.

	 	14.2 Оглавление статей
осуществлено только
для целей информации и
удобства и не должно
рассматриваться, как
нормоустонавливающие и должно быть
проигнорировано для
целей толкования
настоящего Договора.
	 
	 	 
	14.3 References to Articles are, unless otherwise
specified, references to Articles of this
Contract.

	 	14.3 Ссылки на Статьи
являются ссылками на
Статьи, если не
предусмотрено иначе в
тексте настоящего
Договора.
	 
	 	 
	14.4 This Contract shall be governed by and
construed in accordance with substantive law of
the Russian Federation.

	 	14.4 Настоящий Договор
составлен,
регулируется и
подлежит толкованию в
соответствии с
материальным правом
Российской Федерации.
	 
	 	 
	14.5 The present Contract is made in 2 (two)
copies, in Russian and in English, each copy
having equal legal force. In case of a conflict
between Russian and English versions, the English
shall prevail.

	 	14.5 Настоящий Договор
составлен в 2 (двух)
экземплярах на
английском и русском
языках. В случае
расхождений в русском
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	ARTICLE 15 SIGNATURES OF THE PARTIES

	 	СТАТЬЯ 15 ПОДПИСИ
СТОРОН
	 
	 	 
	Client

	 	Заказчик:
	LLC ECI Telecom 2005

	 	ООО «ЕСИ Телеком 2005»

	 	 	 	 	 	 	 
	/s/ Amos Lahat 

General Director

	 	 	 	/s/ Амос Лахат 

Генеральный директор	 	 
	Amos Lahat

	 	 	 	Амос Лахат	 	 
	 
	 	 	 	 	 	 
	Contractor:

	 	 	 	Подрядчик:	 	 
	Veraz Networks Ltd

	 	 	 	“Вераз Нетворкс
Лимитед”	 	 
	 
	 	 	 	 	 	 
	/s/ Israel Zoar

	 	 	 	/s/ Израель Зоар	 	 
	 

	 	 	 	 	 	 
	Israel Zoar

	 	 	 	Израель Зоар	 	 
	General Director

	 	 	 	Генеральный директор	 	 

10

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