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  EXHIBIT 10.13
 Consulting Agreement between ACL and David Wagstaff, III
   CONSULTING AGREEMENT  

    AGREEMENT, made this first day of October, 1999, by and between American Commercial Lines LLC, a Delaware limited liability company (hereinafter "COMPANY") and
David Wagstaff III (hereinafter "CONSULTANT"), for the services defined and under the following terms and conditions.

  I. CONSULTANT SERVICES  

    COMPANY hereby engages CONSULTANT to perform services for the COMPANY and its subsidiaries and affiliates under the terms and conditions herein set forth in
the areas of financing, international strategy, mergers and acquisitions, terminal and facilities management, and other related activities as they may be required from time to time and defined by the
president of the COMPANY or his designated representatives.

  II. COMPENSATION  

    For performance of the services set forth in Article I, CONSULTANT will bill the COMPANY and COMPANY shall pay CONSULTANT for actual days worked at a
rate of $2000 per day. Travel time, if required for meetings and consultation, is billable. Partial days worked will be prorated on the basis of an eight-hour day.

  III. CONSULTANT'S EXPENSES  

    CONSULTANT shall be reimbursed only for actual expenses incurred in performance of the services set forth herein, subject to the policies and procedures of
COMPANY with respect to such reimbursement in effect at the time of the reimbursement request. Such expenses shall include travel costs and cost of accommodations.

  IV. TERM OF AGREEMENT  

    The term of this Agreement shall be for the period from October 1, 1999, until October 1, 2000. The term of the Agreement may be extended or
terminated upon written agreement of both parties to this Agreement.

  V. CONFIDENTIALITY  

    CONSULTANT agrees not to divulge, publish or otherwise make known, either directly or indirectly, to any person, firm, association or corporation, or to use
for the benefit of himself or any other person, firm, association or corporation, during the term of this Agreement and thereafter, any knowledge, information or facts relating directly to the
business of the COMPANY, including any inventions, discoveries, improvements, processes, formulas, apparatus, equipment, methods, trade secrets, secret data and any project data, contracts, proposals,
bids, negotiations, financial information, or other technical and commercial data, possessed, owned or used by the COMPANY (and not otherwise public information), which he acquires in the course of or
by virtue of his engagement by COMPANY.

  VI. OWNERSHIP OF COMPANY INFORMATION
 AND CONSULTANT WORK PRODUCTS  

    All documents and papers, including all records, files, memoranda, financial information, reports, price lists, customer lists, drawings, plans and sketches,
and all copies and summaries thereof, and all equipment and other materials, which CONSULTANT shall use, prepare or come in contact with in the

73

course
of or by virtue of his engagement by COMPANY, shall remain the sole property of COMPANY and upon termination of the Agreement shall be returned by CONSULTANT to the COMPANY if requested.

  VII. ASSIGNMENT  

    It is understood that the services to be performed by CONSULTANT hereunder are of a personal nature, and CONSULTANT shall not assign this Agreement in whole or
in part or cause or allow same to be assigned by operation of law.

    COMPANY
may subcontract or assign any or all of its rights and obligations under this contract to any corporation owned at least 50 percent or financially controlled by
COMPANY.

  VIII. TAXES  

    CONSULTANT shall be responsible for payment of all Federal, State and local taxes incident to performance of the services covered by this Agreement and the
payments made to CONSULTANT hereunder.

  IX. INDEPENDENT CONTRACTOR  

    CONSULTANT is engaged under the terms of this Agreement as an Independent Contractor, and shall perform the services set forth herein solely as an Independent
Contractor.

  X. ENGAGEMENT AND OTHER DUTIES  

    The president of the COMPANY shall be the sole company officer authorized to engage the consulting services of CONSULTANT. The parties acknowledge that
CONSULTANT currently serves as a member of the Board of Representatives of American Commercial Lines Holdings LLC and receives fees separately for such services. CONSULTANT'S duties associated with
his role as a board member shall remain separate and apart from any engagements contemplated under this Agreement.

  XI. GOVERNING LAW  

    The terms of this Agreement shall be construed and interpreted under, and all rights and duties of the parties shall be governed by the law of the State of
Louisiana, U.S.A.

  XII. ENTIRE AGREEMENT  

    This Agreement supersedes and replaces any and all prior consulting agreements, written or oral, between the parties.

    No
waiver of any provision of this Agreement or any right hereunder and no authorization of any act not in conformity herewith shall be deemed to amend or supersede this Agreement, in
whole or in part, unless such waiver of authorization shall be in writing and signed by an officer of the COMPANY.

    Should
any provision, in whole or in part, of this Agreement be found to be legally invalid, void or unenforceable, the remaining provisions of this Agreement shall not be affected
thereby, and the parties hereto shall, by amendment to this Agreement, promptly replace such provision by a reasonable new provision that, as far as legally possible, shall approximate what the
parties intended by such original provision to carry out their purpose hereunder.

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    IN
WITNESS WHEREOF, the parties have set their hands to this Agreement on the day and year first above written.

	 	 	AMERICAN COMMERCIAL LINES LLC
	 

 	 
 	 
By:	 

/s/ MICHAEL C. HAGAN   
 Michael C. Hagan
	 

 	 
 	 

As:  President and Chief Executive Officer
	 

 	 
 	 
 DAVID WAGSTAFF III
 CONSULTANT
	 

 	 
 	 

/s/ DAVID WAGSTAFF III   

 

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EXHIBIT 10.13 Consulting Agreement between ACL and David Wagstaff, III CONSULTING AGREEMENT

I. CONSULTANT SERVICES

II. COMPENSATION

III. CONSULTANT'S EXPENSES

IV. TERM OF AGREEMENT

V. CONFIDENTIALITY

VI. OWNERSHIP OF COMPANY INFORMATION AND CONSULTANT WORK PRODUCTS

VII. ASSIGNMENT

VIII. TAXES

IX. INDEPENDENT CONTRACTOR

X. ENGAGEMENT AND OTHER DUTIES

XI. GOVERNING LAW

XII. ENTIRE AGREEMENT<PAGE>

                          SECOND AMENDMENT TO SUBLEASE

This Amendment dated February 11, 1999, for reference purposes only, is made and
entered into by Dialogic Corporation ("Sublessor") and DSP Group, Inc.
("Sublessee").

RECITALS:

A.    The parties have previously entered into a sublease ("Sublease") dated
      October 18, 1996 and a First Amendment to Sublease dated December 4, 1996.

NOW THEREFORE, the parties agree as follows:

1.    To amend the "Termination Date" as defined in paragraph 7 of Sublease to
      be June 30, 2001.

2.    To increase the monthly rent as defined in paragraph 9 of Sublease to be
      thirty-three thousand six hundred thirty-seven dollars ($33,637.00)
      beginning January 1, 2000.

3.    To delete paragraph 8 of Sublease in its entirety and substitute the
      following: The Sublease shall automatically renew for one month periods
      beginning July 1, 2001; provided, however, in no event shall the term of
      Sublease extend past April 30, 2004. This month to month extension period
      can be terminated by either party by providing at least five (5) months
      prior written notice to the other party at any time after February 1, 2001
      (i.e., if written notice is delivered on February 1, 2000, such
      termination shall be effective July 1, 2001).

4.    Except as specifically amended modified by this Second Amendment to
      Sublease, all other terms and provisions of the First Amendment to
      Sublease and Sublease shall remain unmodified and in full force and
      effect.

Sublessor:  DIALOGIC CORPORATION      Sublessee:  DSP GROUP, INC.

By:/s/ THOMAS ARIDAO                  By: /s/ MICHAEL COHEN
   ------------------------------         ----------------------------

Title: Chief Financial Officer        Title: Director, Administration
       --------------------------            -------------------------

Date: 3/15/99                         Date: 3/12/99
      ---------------------------           --------------------------<PAGE>

                           OFFICER'S CERTIFICATE

                             MARCH 30, 2000

                          ------------------------

    The undersigned, Eli Ayalon, hereby certifies as follows:

         (a)  I am the duly elected, qualified, acting and incumbent Chairman
of the Board and Chief Executive Officer of DSP Group, Inc. (the "Company").

         (b)  Attached hereto is an English translation of an Employment
Agreement, dated as of May 1, 1999, by and between Moshe Zelnik and DSP Group
Ltd., a wholly owned subsidiary of the Company.

         (c)  To my knowledge, such translation is a fair and accurate
translation as required under Rule 306 of Regulation S-T promulgated by the
Securities and Exchange Commission.

         IN WITNESS WHEREOF, the undersigned has duly executed this
Certificate on behalf of the Company as of the date first written above.

                                       DSP GROUP, INC.

                                       /s/ ELI AYALON
                                       ----------------------------------------
                                       Eli Ayalon, Chairman of the Board and
                                          Chief Executive Officer

<PAGE>

To:  Moshe Zelnik
   ------------------------
Identity Certificate No._________________________
Address:_________________________________________

_________________________________________________

              Re: YOUR EMPLOYMENT WITH DSP GROUP.
We are pleased to offer you to join DSP Group Co. Ltd. (Hereinafter: "The
Company") in accordance with the following terms of employment:

1.    DEFINITION OF THE POSITION.

      A.       Your  position in the Company will be VICE  PRESIDENT OF
               FINANCE,  CHIEF  FINANCIAL  OFFICER AND SECRETARY.

      B.       You will be directly subordinate to __________________________.

2.    TERMS OF EMPLOYMENT

      A.       SALARY.

          1.      In  consideration  for your work for the Company, the Company
                  will pay you the amount of NIS - (US$105,000) - Gross,
                  annually. (Hereinafter: "The Salary").

          2.      Tax will be deducted at source from the Salary as required
                  by law in accordance with the Income Tax Regulations, as
                  well as Health Tax And National Insurance. The Salary will
                  be linked to the cost of living index without any maximum
                  rate, to which health dues will be attached as required by
                  law.

      B.       SENIOR EMPLOYEES INSURANCE PLAN

          1.      The Company will pay 20.833% of the Salary as detailed in
                  section 1.A.2 above to a pension fund or a provident fund,
                  at its discretion, up to the maximum stipulated in the law,
                  in accordance with the following details:

                  A)       8.33% of the Salary on account of severance pay -
                           at the Company's expense;

                  B)       5% of the Salary on account of recompense payments
                           - at the Company's expense.

<PAGE>

                  C)       5% of the Salary on account of recompense payments
                           - at your expense.

                  D)       2.5% of the Salary on account of insurance for loss
                           of work ability - as is customary in the Company
                           and at the Company's expense.

          2.      The payments made by the Company for the senior employees
                  insurance plan, as stipulated in sub section A above, are
                  instead of any other obligation for the payment of
                  severance pay / payments made to a pension fund etc.

          3.      Your consent to section B exempts the Company from the need
                  to approach the Minister of Labor in order to receive his
                  permission in accordance with section 14 of the Severance
                  Compensation Pay Law, although if such a need is created,
                  for referral for the receiving of the necessary permit,
                  your signature upon this agreement will constitute
                  authorization for the Company also to make a referral in
                  your name.

          4.      If the Company is obliged in the future, by virtue of the
                  law and/or an extension order which applies to the whole
                  economy, to make payments of monies for an arrangement or
                  comprehensive pension fund or otherwise, the payments will
                  be made to the new applicable fund or arrangement, instead
                  of the arrangement as in this agreement, and you will not
                  be able to withdraw monies on account of the deposits to
                  the previous arrangement, unless subject to the regulations
                  of the appropriate fund and/or plan.

      C.       STUDY FUND

               During the period of your employment, the Company will make
               payments to a study fund, the payments will be at the rate of
               7.5% of the Salary up to the maximum rate, as set down by law,
               at the Company's expense and 2.5% of the maximum rate up to
               the maximum rate set down by law, at the expense of the
               employee.

                                       2
<PAGE>

      D.       CAR

          1.      The Company shall make a Company car available to you,
                  (Hereinafter: "The Car") commencing from the start of your
                  employment.

          2.      All the expenses for the Car shall be paid by the Company,
                  except for the payment for the value of the use of the Car,
                  which shall be paid by you, and which shall be deducted by
                  the Company from your monthly Salary.

      E.       ANNUAL VACATION LEAVE.

          1.      During the period of your employment, you will be entitled
                  to annual vacation leave of 23 days. The date of your
                  leaving for vacation shall be coordinated with your
                  superior.

          2.      The accumulation of vacation days for the period of more
                  than the total of the vacation days available to you for
                  two contract years will not be allowed.

          3.      The Company will be entitled to order you to leave for
                  annual vacation and to spend up to half of your available
                  annual vacation days at the date at which the Company's
                  employees will leave on an organized and collective
                  vacation leave.

      F.       ILLNESS

          1.      You are entitled to 30 days annual sick leave, with the
                  possibility of accumulating 3 (three) years (i.e. up to
                  ninety days).

          2.      The payment of the sick leave will be made from the first
                  day against presentation of a doctor's certificate.

          3.      Accumulative sick leave days are not redeemable.

      F.       MILITARY RESERVE DUTY SERVICE (MILLUIM)

          1.      Every time you go on active military service you are
                  obliged to inform the Company upon the receiving of the
                  call up order.

                                       3
<PAGE>

          2.      Wages for the period of the reserve military duty will be
                  fully paid, as stipulated in this agreement, subject to the
                  providing of the relevant confirmations concerning the
                  active military duty.

      H.       YOUR CANDIDACY FOR THE OPTIONS PROGRAM FOR COMPANY EMPLOYEES.

          1.      The Company management shall make a recommendation to the
                  board of directors of DSPG Inc., granting you an option to
                  purchase 40,000 DSPG shares, subject to the terms of the
                  share/options program for DSPG employees.

                  In order to eliminate any doubt, it is clarified that, in any
                  event, the confirmation of the granting of the options is
                  subject to the confirmation of the board of directors of the
                  Company as transpires from the Company's procedures.

      I.       ANNUAL BONUS.

                  The Company is accustomed to granting bonuses to some of
                  the employees, and at the time of the deliberations on the
                  granting of bonuses, the Company shall decide, at its
                  discretion, also with respect of your candidature for the
                  granting of a bonus.

3.    THE PERIOD OF THE CONTRACT AND THE TERMINATION THEREOF.

      A.       This agreement is valid from the date of the signing thereof.
               The contract is for a period of time which has not been
               specified in advance. The commencement of your employment with
               the Company is hereby set as commencing from _________________.

      B.       Each party shall be entitled to bring this contract to an end
               by prior written notice to the other party of ninety (90)
               days. The Company has reserved the right not to make use of
               the period of prior notice and/or to immediately terminate
               your employment. In such a case, you shall be paid prior
               notice at the rate of your Salary for the stipulated period,
               on the basis of your last known Salary.

                                       4
<PAGE>

      C.       In the following instances the Company shall be entitled to
               cease your employment without any prior notice:

          1.      The perpetrating of a criminal offence connected to the
                  work and/or an offence which bears an element of disgrace.

          2.      The breach of the duty of trust with the Company and/or the
                  performance of an act which has a conflict of interests.

          3.      The breach of your undertakings of the preserving of
                  secrecy and non competitiveness as detailed below in this
                  agreement and the appendices thereto.

          4.      The causing of malicious damage to the Company or the
                  causing of damage to the Company as a result of gross
                  negligence.

4.    THE TRANSFERENCE OF PAYMENTS AND RETIREMENT COMPENSATION.

      In the event of you being dismissed, except for dismissal for one of
      the causes as stated below, the Company will transfer to you the full
      payments which have accumulated in your favor in the senior employees
      insurance plan policy and/or the endowment and/or fund (Hereinafter:
      "The Payments").

      As follows is the list of causes which will cancel the transference of
      the Payments into your name:

      A.       The Company has dismissed you for reasons which entitle it to
               dismiss you in accordance with the law without severance pay.

      B.       The breach of your duty of trust and/or the duty of non
               competitiveness and/or the breach of the duty of secrecy, in
               accordance with this agreement, without derogating from the
               generality of that stipulated - the breach of the agreement of
               secrecy and non competitiveness attached as APPENDIX A to this
               agreement and which constitutes an integral part thereof.

      C.       The perpetration of a criminal offence connected with the work
               and/or an offence which bears an element of disgrace.

                                       5
<PAGE>

      D.       You ended your work with the Company without providing
               sufficient prior notice as detailed in section 3B above.

      E.       You have concluded your employment with the Company without
               passing over your position as detailed in section 7 below.

      It is hereby clarified that, your transference from the work set up of
      the Company to that of new company which will be set up, if at all,
      within the framework of the group and your employment in such a
      company, will not be considered as the termination of your employment,
      your dismissal and/or your resigning from the Company, for the
      transference of the various Payments, including, but without derogating
      from the above said, severance pay.

5.    WORK HOURS.

      A.       The accepted working hours in the Company are 44 hours a week
               and the accepted working days are Sundays through to Thursday.

      B.       As your position is regarded as one of those positions which
               require a special amount of personal trust, as defined in the
               Working Hours and Rest Law - 1951, the provisions of this law
               will not apply to you. From time to time, you will be
               required, in accordance with the needs of your position, to
               work beyond the accepted working hours and on Fridays. In
               these cases, you will not be paid extra for your overtime.

6.  THE DUTY OF TRUST AND REFRAINING FROM A CONFLICT OF INTERESTS.

      A.       You are obligated to fulfil your position diligently and in a
               trustworthy manner, to make use of all your talents, your
               knowledge and experience for the benefit of the Company and
               for the progress of the Company and this at the highest and
               most efficient level as shall be determined by the Company.
               Furthermore, you are obligated to act in accordance with the
               Company's instructions with everything concerning the manner
               of the performance of the work,

                                       6
<PAGE>

               work procedures, discipline and behavior as shall be valid
               from time to time.

      B.       Commencing from the start of your employment on a full time
               basis for the Company, as stipulated in section 3A above,
               i.e., commencing from (Date):________________ you shall not be
               employed in any other employment and/or any other job as a
               salaried worker and/or as an adviser and/or as being directly
               or indirectly self- employed, unless having received the prior
               written consent of the Company.

      C.       For the full duration of the period of the agreement, you will
               not receive any payment or other benefit from any third party,
               directly or indirectly involved with your work. It is made
               clear to you, that the breach of this provision is a
               fundamental breach of this agreement, and that furthermore,
               the amount or benefit which is received by you as stipulated,
               shall belong to the Company, which shall be entitled to deduct
               this amount, from any monies owing to you by the Company.

      D.       You shall not carry out any act which may harm the trust of
               the Company and/or which is likely to place you in a situation
               of a conflict of interests with the aims of the Company. You
               are obliged to inform the Company immediately and without
               delay of any issue or matter in which you have a personal
               interest and/or any other action which is likely to place you
               in a situation as detailed above.

      E.       The commencement of your employment in accordance with this
               agreement is made conditional on your signing on the agreement
               of secrecy and non competitiveness which is attached to this
               agreement as Appendix A and which constitutes an integral part
               thereof.

      F.       You are obliged to inform the managing director of the Company
               of any business opportunity which has any connection to the
               information as defined in Appendix A. You are obliged not to
               make

                                       7
<PAGE>

               any such opportunity exclusive to yourself, whether directly
               or indirectly, unless the prior written approval of the
               managing director of the Company has been given to you.

7.    THE PASSING OVER OF THE POSITION.

      If your employment has terminated or been terminated and/or the
      validity of this agreement has expired for any reason whatsoever, you
      are obliged to pass over your position, and without derogating from the
      generality of that stipulated - all the matters under your care and/or
      any information whatsoever available to you and connected in any form
      whatsoever to your work for the Company, in an orderly and full fashion
      including the disclosure of any important detail with regard to the
      business of the Company, as well as forwarding, in a full and orderly
      fashion, all the documents, information, equipment, etc. to the
      Company, which may have reached you and/or be prepared by you with
      regard to your employment with the Company, up until the cessation of
      your employment with the Company.

8.    DECLARATION OF SECRECY AND NON COMPETITIVENESS.

      You are obligated to the safeguarding of secrecy and non
      competitiveness, both during the course of your employment with
      the Company and thereafter, as detailed in your undertaking to
      safeguard secrecy and non competitiveness attached to this
      agreement as APPENDIX A and which constitutes an integral part
      thereof.

9.    PATENTS, INVENTIONS AND COMMERCIAL SECRETS.

      A.       Copyrights for any invention and/or patent and/or commercial
               secret and/or professional secret and/or any innovation, which
               you may intend and/or which any of the employees of the
               Company who are sub-ordinate to you may invent during the
               period of your employment with the Company are the exclusive
               property of the Company.

                                       8
<PAGE>

               The Company shall be entitled to protect any invention and/or
               patent and/or commercial secret as stipulated, by means of
               registration, or by any other means, in Israel or anywhere
               else.

               It is hereby clarified that you will not be entitled to
               register any invention and/or patent or commercial secret or
               to take any measures with respect thereof, excepting for the
               actions which will be required for the above mentioned making
               use thereof or registration in the name of the Company or by
               the Company.

      B.       You are obligated to immediately inform the Company in writing
               of any invention and/or patent and/or commercial secret which
               you may invent and/or which is invented by the Company's
               employees who are subject to you.

      C.       That stipulated in this section completes and compliments that
               stipulated in Appendix A.

      With your signing upon this personal agreement and your formal joining
      of the work staff of the Company we wish you continued satisfaction and
      enjoyment of your work.

      Here's hoping for years of co-operation and personal benefit as well as
      benefit for the Company, its employees and stockholders.

                                                          Yours Respectfully,

                                                               /s/ LEAH SADEH

                                                                   Leah Sadeh
                                                     Corporate Vice President
                                                              Human Resources
                                                               DSP Group Ltd.

                                       9
<PAGE>

      I have carefully read this letter and I express my consent with the
      contents thereof.

      I am aware that the terms of wages which have been offered to me above
      and those which shall be pertinent for long as I am employed by you are
      personal and that this letter constitutes a special personal contract
      of employment, which lays down the relations between me and the
      Company, and that therefore I confirm that I am aware that no
      provisions of any to the agreements will apply to me, and including
      collective agreements, between the Company and its employees so long as
      this agreement is valid and I undertake to safeguard the secrecy
      thereof.

/s/ MOSHE ZELNIK                                            5/1/99
------------------------------                             --------------
SIGNATURE                                                    DATE

------------------------------
I.D.
MOSHE  ZELNIK
------------------------------
NAME

                                       10
<PAGE>

                APPENDIX A TO THE AGREEMENT OF MY EMPLOYMENT WITH
                               DSP GROUP CO. LTD.

To:
DSP Group Co. Ltd.
5 Shenkar St.
HERZLIA -ON - SEA

Dear Sir/Madam,

         Re: UNDERTAKING TO SAFEGUARD SECRECY AND NON-COMPETITIVENESS.

WHEREAS:          I seek to be employed by DSP Group Co. Ltd. (a private
                  registered company No. 51-135472-2 (Hereinafter: "The
                  Company");

AND WHEREAS:      The Company, in the matter of the duty of secrecy and
                  non-competitiveness in this appendix, also includes the
                  American holding company of DSP Group Co. Ltd. - DSP
                  Group, Inc. and also the subsidiary company of DSP Voice
                  Com. Group Ltd. and the subsidiary company of DSP Group
                  Inc. - RF Sub Inc.;

AND WHEREAS:      During the course of my employment for the Company
                  information is likely to reach me, in accordance with the
                  following definition:

                  Any information which has and/or shall reach me and/or
                  come to my attention, whether directly and/or indirectly,
                  during the course of my work or as a result of my work
                  for the Company, including document (reports, notes and
                  papers, applications and cheques), drafts, processes,
                  commercial secrets - including information concerning the
                  Company's customers, suppliers and business partners
                  and/or the manufacture or marketing set-up of the Company
                  or connected to the ties of the Company and/or companies
                  connected to it, or which control or are controlled or

                                       11
<PAGE>

                  affiliated with the Company by virtue of and acting with
                  any third party whatsoever, including customers,
                  suppliers, banking institutions, governmental bodies,
                  private entities, public and quasi public entities of any
                  kind and sort as well as any financial, business and
                  commercial information, financial reports and balance
                  sheets before the publication thereof and any internal
                  information whatsoever which may influence the value of
                  the Company's shares - formulae, data, plans, patents,
                  inventions, discoveries, innovations, improvements,
                  research, and any methods whatsoever, developments and
                  scientific and technical, economic, commercial or other
                  developments, applications for patent, prototypes,
                  models, pictures, descriptions, sketches, drawings,
                  photostats or blueprints, notebooks, samples and
                  documents of schedule, lists, documentation, source and
                  destination codes, films, recordings and other means of
                  storage, letters, notes, booklets for note taking,
                  reports and flow charts, as well as information connected
                  with the business of the Company in the present and/or
                  business which the Company is about to engage in (as they
                  shall be developed by the Company and as described by the
                  Company in the development plan booklet and its business
                  plans and in the other explanatory material on behalf of
                  the Company), and any other thing, and all, whether in
                  writing or verbally, and provided that it is not in the
                  public domain or that it has not become in the public
                  domain as a result of the breach of my undertakings in
                  accordance with this letter or in accordance with law.
                  (Hereinafter: "The Information").

AND WHEREAS:      The Information, as defined above, also includes
                  Information of commercial, technical and non-technical,
                  value, written and non-written, data, systems of note
                  taking, samples, documents of

                                       12
<PAGE>

                  specifications, source and destination codes, processes,
                  algorithms, computer tapes, recordings and other means of
                  storage which are to be viewed as intellectual property or
                  secret material of the Company or of any one of its
                  predecessors or of the companies connected to it, whether
                  fully or partially, and including especially without
                  restriction, computer hardware, programs and computer
                  software and implementations, matters of prices and
                  marketing information as well as inventions which are not
                  restricted in accordance with the definition of invention
                  as has been determined in the patent laws which are
                  implemented in Israel or in the U.S.A., and any improvement
                  or adjustment of that information in question, which has
                  been developed, sold, or which in respect of which a
                  license has been given to the Company during the course of
                  the conducting of the business of the Company, from time to
                  time, as well as any product in question, whether planned,
                  developed or attained by or for the Company, directly or
                  indirectly, and provided that it is not information and/or
                  a product which is available freely and which constitutes
                  public domain information or which can be purchased freely
                  by an independent third party.

AND WHEREAS:      As a condition of my employment with the Company and the
                  receiving of information by me, inter alia, is my
                  undertaking to safeguard the secrecy and of
                  non-competitiveness;

THEREFORE, I DECLARE AND UNDERTAKE AS FOLLOWS:

CHAPTER A - SECRECY

1. To keep secret the Information which reaches me or which shall reach me,
   or which shall come to my attention, directly or indirectly, during the
   course of my employment for the Company and/or my involvement with the
   Company,

                                       13
<PAGE>

   absolutely secret, and this without any limitation in time, even after the
   conclusion of my employment with the Company.

2. Not to disclose and/or to transfer and/or to sell, whether for
   remuneration or not and/or to cause the discovery of Information, whether
   directly or indirectly, as well as to take all measures to safeguard the
   secrecy of the information and the prevention of the delivery thereof or
   of its reaching any third party, person, entity or corporation whatsoever,
   excepting for my superiors in the Company or in accordance with their
   instructions for the Purpose of the performance of my duties as an
   employee of the Company.

3. Not to make any use of the Information, whether fully or partially, for my
   needs or for the needs of to others, whether directly or indirectly, which
   are not for the purpose of to performance of the jobs imposed upon me as
   an employee of the Company in accordance with the instruction of my
   superiors in the Company.

       Not to make any copies of the information in any manner whatsoever
       unless in accordance with the Company's instructions or someone who
       is authorized to do so on behalf of the Company.

4. I hereby undertake not to accept any materials whatsoever relating to the
   Information or the products, or any equipment from the Company without
   receiving the express prior written consent of: (1) the president of the
   Company or the managing director, or (2) a person authorized in writing to
   do so by the president of the Company or the managing director.

5. Without prejudicing the above said, I am aware that I do not have any
   intellectual property right and that I shall not have any intellectual
   property right in the Information as defined by this agreement.

5A.     I hereby declare to disclose to the Company and/or to those replacing
        it and/or to the assignees of the Company, regarding the inventions
        which shall be made by me during the period of my employment with the

                                       14
<PAGE>

        Company and/or as a result of my employment with the Company and
        connected to my employment with the Company and/or the information,
        and I hereby assign any interest that I have or which I may have in
        those inventions in favor of the Company and/or those in place of the
        Company and/or its assignees, and all this without further
        remuneration and provided that I will not be required to bear any
        costs whatsoever involved with such assignment as mentioned above.

        In the event of my making an invention, which is registered as a
        patent, during the course of my employment with the Company or as
        result of my employment with the Company, the Company will register
        my name in the patent documents as the inventor, provided that it is
        convinced, beyond all doubt, that the invention was indeed made by me
        and that such registration shall not prejudice its intellectual
        property rights and/or other rights of the Company and/or those in
        its stead and/or it assignees, for the invention and/or patent as
        detailed above.

5B.     I hereby undertake, that for so long as I am required to do so,
        including after the termination of my employment for any reason
        whatsoever, that I will sign on any document, which, in accordance
        with the Company's discretion is required for the lodging of an
        application or copyright in accordance with the laws of Israel, the
        U.S.A. and/or any other foreign country in order to protect the
        interests of the Company in the above mentioned invention.

5C.     I hereby declare that apart from that as detailed in section 5C.1
        below, I do not have any interest in any application or application
        for a patent whatsoever and not even for material which is subject to
        copyright, patents and applications for patents which presently
        belong to me.

5C.1    Existing patent and/or applications for patents pending and/or
        activities in research at the stage of lodging for registration of
        patent are as follows:

                                       15
<PAGE>

             1.______________________________________________________________

             2.______________________________________________________________

             3.______________________________________________________________

             4.______________________________________________________________

6.      I am aware that the forwarding of Information and/or any part thereof
        to any third person whatsoever is likely to cause serious damages to
        the Company and I hereby undertake that I shall not undertake any
        action of transference and/or sale of the Information and/or of the
        products developed by the Company and/or existing products and/or
        which have been developed whether by myself or in co-operation with
        others, including customers of the Company or whether in co-operation
        with any third party whatsoever, whether with customers of the
        Company or with others.

7.      I declare that I am aware, that due to the nature of the Company's
        business, it takes upon itself and/or is likely to take upon itself
        undertakings with third parties obliging the safeguarding of secrecy
        which will also be applicable to its employees, and that the
        non-fulfillment of the above undertakings shall, inter alia, be cause
        for the breach of the contract between the Company and the third
        party. I therefore undertake to fulfil all these undertakings as has
        been determined between the Company and the aforesaid third party.

8.      I hereby undertake not to harm, whether directly or indirectly, the
        reputation of the Company and/or its status amongst its customers in
        effect an its potential customers.

9.      To keep secret any information relating to aspects of money, fiscal
        aspects and economic aspects of the Company's activities, including
        ties with banking institutions, customs and excise authorities,
        undertakings of the Company and rights toward third parties.
        Likewise, I will keep secret

                                       16
<PAGE>

        any information which may reach me and connected with entities such
        as the center for investments, the Scientist-in-Chief, accountants
        and legal advisors of the Company, etc.

10.   In order to eliminate any doubt, it is hereby emphasized that my
      undertakings in accordance with sections 1 - 9 above shall remain valid
      both during the period of my employment with the Company and after the
      termination thereof for whatever reason whatsoever, and shall also bind
      my legal representatives, and this without any limitation in time.

11.   I agree that any document which I have prepared and/or any Information
      which I have attained for the purpose of my work with the Company
      and/or my work during the period of my employment with the Company is
      the property of the Company, which shall be forwarded to the Company
      immediately upon the termination of my employment as detailed below.
      Likewise, I hereby undertake to return to the Company any Information,
      whether written or in any other form whatsoever, which is in my
      possession or which shall be in my possession at any time, and this
      immediately upon the termination of my employment for any reason
      whatsoever or immediately upon the demand of the Company at any time.

CHAPTER B - NON COMPETITIVENESS

12.   Furthermore, and without prejudicing my undertakings in this document
      and/or my undertakings imposed upon me in accordance with the law or
      according to custom, I hereby undertake not to compete with the Company
      in any form or manner whatsoever, by any means of undertaking
      whatsoever, whether directly or indirectly, by myself or together with
      others, and/or to provide advise of any sort whatsoever to a competing
      business and/or to be employed for pay or without pay by a competing
      business and/or to be active, whether directly or indirectly in the
      management and/or activating and/or planning of a competing business.

                                       17
<PAGE>

13.   I hereby undertake that upon the conclusion of my employment with the
      Company for any reason whatsoever, I will not work, whether for wages
      or not and/or for the purpose of advising and/or to be directly or
      indirectly active in the execution of work and/or service for a
      customer of the Company and/or someone who was a customer of the
      Company at the time of my employment with the Company.

14.   In order to eliminate any doubt I hereby clarify that my undertakings
      in accordance with sections 12 - 13 above, shall remain valid during
      the period of my employment with the Company and after the termination
      thereof for whatever reason whatsoever for the periods as detailed
      below:

14A.  For a period of one year after the conclusion of my employment, in the
      event of my having worked for the Company for a period of more than 6
      months;

14B   For a period of two years after the conclusion of my employment, in the
      event of my having worked for the Company for a period exceeding two
      years.

15.   I undertake that upon the conclusion of my employment with the Company,
      for whatever reason, I shall not lobby and/or attempt to lobby and/or
      attain, whether directly and/or indirectly and/or for another and/or
      for any undertaking whatsoever with any customer of the Company and/or
      someone who was a customer of the Company at the time of my employment
      with the Company.

CHAPTER C - MISCELLANEOUS BREACHES

16.   In the event of my breaching my undertakings in accordance with this
      writ of undertaking, I will be obliged to compensate the Company for
      all the damages and expenses caused to the Company as a result of the
      breach, and this without derogating from any of the remedies available
      to the

                                       18
<PAGE>

      Company against me in accordance with any law as a result of the breach
      of my above undertakings.

17.   I am aware that the Company has various intellectual property rights,
      and the above said shall not prejudice these rights in any manner
      whatsoever.

18.   The rights of the Company in accordance with this document are
      personally negotiable.

19.   My undertakings in accordance with this writ, constitute an integral
      part of the terms of my employment between me and the Company. My above
      undertakings shall not prejudice the undertakings applicable to me in
      any way and as an employee of the Company in accordance with the
      agreement of employment between me and the Company and/or in accordance
      with any law, including collective agreements and/or any custom.

20.   My undertakings in accordance with this document cannot be changed and
      shall not be brought to an end, fully or partially, unless by virtue of
      a document written and signed by an authorized representative on behalf
      of the Company.

21.   If, for any reason whatsoever, a term of this document is held to be
   invalid or unenforceable, the validity and enforceability of the other
   provisions of this document shall not be prejudiced.

5/1/99                                      /s/ MOSHE ZELNIK
------------------------                    ---------------------------------
DATE                                        EMPLOYEE'S SIGNATURE

                                       19

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