Document:

LETTER AGREEMENT

 EXHIBIT 10.3 
  
 April 7, 2003 
  
 Ms. Elaine Coughlan 
 ParthusCeva, Inc. 
 32-34 Harcourt Street 
 Dublin 2 
 Ireland 
  
 Dear Elaine: 
  
 ParthusCeva, Inc. (the
“Company”) appreciates the efforts you have made as Chief Financial Officer of the Company, and wishes to provide for a fair and orderly transition of your duties to a new CFO. As you know, we have been constituted as a duly authorized
committee of the Board of Directors of the Company to finalize those arrangements with you, as summarized in this letter. 
  

	 	1.	 	By signing the letter, you and the Company agree that for all purposes your separation from the Company on the Effective Date (as provided below) will be treated as a termination by
the Company without cause pursuant to Section 4.4 of your Employment Agreement with the Company dated as of the 1st
of November, 2002 (the “Employment Agreement”). By signing this letter, the Company confirms its obligations under the Employment Agreement, including Section 5.2(b), and you agree to continue to abide by your obligations under the
Employment Agreement as provided therein, including Section 6. In particular, and in furtherance of the provisions of the Employment Agreement, the Company confirms: 

  

	 	•	 	It will pay you severance of €168,908 as provided for in the Employment Agreement on the Effective Date and will cooperate to do so in a tax efficient manner as determined by
the Company in good faith. 

  

	 	•	 	You will retain any pension benefits you have under the Company’s pension plans on the Effective Date. 

  

	 	•	 	The Company will pay you €26,308 in satisfaction of all accrued vacation pay through the Effective Date. 

  

	 	•	 	The Company will also continue to fund your membership in the Company’s VHI Scheme (E) health plan for a period of two years after the Effective Date. 

 

	 	•	 	The Company will pay you a bonus for the year 2002 of €68,400 on the date hereof. 

  

	 	2.	 	As provided in the Employment Agreement, all of your outstanding stock options will accelerate in full on the Effective Date and will be treated as fully vested. The exercise period
provided in such options shall be extended to expire on May 23, 2005. On that date your options, to the extent not exercised, will lapse and cease to be exercisable. In addition, the Company agrees that if at any time 

 April 7, 2003 
 Page 2

  
 before the Effective Date a grant of stock options is made to
senior management of the Company, you will receive an option award substantially consistent with awards to other members of the senior management team at the level of Senior Vice President or above. 
  

	 	3.	 	You agree that you shall continue to remain an employee of the Company and serve as Chief Financial Officer until May 23, 2003, which is the Effective Date for the purposes of this
letter agreement. Through the Effective Date, you will continue to fulfill your duties and responsibilities as Chief Financial Officer, at your current rate of compensation. After the Effective Date, you also agree to serve as a consultant to the
Company at your current rate of compensation until June 23, 2003 to facilitate a transition in management of the Company and to preserve the value of the assets and business of the Company. For your service as a consultant and for your support in
connection with the transition program, you shall be entitled to a transition bonus of up to a maximum of €50,000, as determined by Sven-Christer Nilsson and Zvi Limon in good faith on or before June 23, 2003, it being understood that the
intention is to pay such bonus if you cooperate fully in the transition. On the Effective Date you will resign in writing from all of your statutory offices. If a Chief Financial Officer of the Company is not appointed by June 23, 2003, then at the
written request of Mr. Nilsson and Mr. Limon, in consultation with the interim CEO, you agree to continue as a consultant to the Company on a month-to-month basis. 

  

	 	4.	 	On or after the Effective Date, subject to the good faith discharge of your obligations under the Employment Agreement and hereunder, the Company shall provide you with a reference
upon the terms set forth in Exhibit A, it being understood that the intention is to provide you with such a letter if you cooperate fully in the transition. The Company agrees that it shall deliver such reference to third parties upon request and
confirm that such reference is a fair assessment of your performance as an officer and employee of the Company. The Company agrees that it shall direct those officers and employees it makes privy to the terms of this Agreement not to make directly
or by inference any negative or adverse remarks concerning you and your services to the Company as an employee or executive, and you agree that you will not at any time make directly or by inference any negative or adverse remarks concerning the
Company, its officers, directors or employees, or its business or financial affairs. 

  

	 	5.	 	If you would like, you are welcome to retain your lap top computer, computer monitor, personal organizer and laser printer, as well as the mobile telephone and related telephone
number the Company has supplied you. 

  

	 	6.	 	You agree that the terms of this letter agreement are a full and complete settlement of any claims you might have against the Company, other than any claims for breach of this
agreement in the future, and you fully and finally release the Company from any and all such claims. In particular, and without limitation of the foregoing, you acknowledge and agree that you have no claim against the Company, its affiliates, agents
or employees, under and in relation to the 

 April 7, 2003 
 Page 3

  
 provisions of the Unfair Dismissal Acts, the Redundancy
Payments Acts, the Organization of Working Time Act or any other Irish or other applicable legislation governing employment relationships in any jurisdiction. The Company agrees that the terms of this Agreement provide a full and final settlement of
all claims that the Company has or may have against you arising out of your employment, and the Company hereby fully and finally releases you from all such claims, except any claims that may arise as a result of any violation by you of applicable
securities laws. 
  

	 	7.	 	It is agreed that the parties shall cooperate in the preparation of any press release regarding the matters contemplated therein subject to the obligations of the Company to comply
with the provisions of applicable securities laws. 

  

	 	8.	 	You acknowledge that before signing this agreement you received independent legal advice regarding your legal rights and the consequences and the legal effects of this letter
agreement. This agreement is governed by Irish law, is for the benefit of both you and the Company, and shall be binding upon the respective parties and the personal representatives and successors. 

  

	 	9.	 	Where the Company is under a legal obligation to deduct tax in respect of any sum due to you under the Employment Agreement or these arrangements, such sum will only be paid to you
after the Company has deducted the appropriate tax. 

  
 We trust that these arrangements reflect our understanding, and would appreciate acknowledgement of your agreement to the terms of this letter agreement by signing a copy in the space provided below. We value the contribution that you have
made to Parthus and ParthusCeva over the years and your commitment to supporting a smooth transition in the coming months. 

 April 7, 2003 
 Page 4

  
 Sincerely, 
  
 ParthusCeva, Inc. 
  
 By: 
  
 /s/ SVEN-CHRISTER
NILSSON             
 Sven-Christer Nilsson 
  
 /s/ ZVI LIMON             
 Zvi Limon 
  
 Agreed to and accepted by:

  
 /s/ ELAINE
COUGHLAN             
 Elaine Coughlan

  

 Exhibit A 
  

[date] 
  
 To Whom It May Concern: 
  
 In November 1999
Elaine Coughlan joined Parthus Technologies plc as Corporate Controller VP Finance, reporting to the Chief Financial Officer. In March 2001 Elaine was promoted to the position of Chief Financial Officer (CFO) reporting to the Chief Executive Officer
of Parthus Technologies plc. On 1 November 2002 Elaine was appointed to the position of CFO of ParthusCeva, Inc following the merger of Parthus Technologies plc and Ceva, Inc. 
  
 It was agreed by the board of ParthusCeva, Inc. to base the corporate headquarters of the newly formed company in San Jose, USA. However,
for personal and family reasons Elaine was not in a position to move from Dublin to San Jose. Consequently, in February 2003 Elaine communicated to the board that she would be stepping down as CFO. 
  
 In her role as CFO, Elaine had responsibility for all financial activities for the company,
including financial & management reporting, treasury, SEC reports and filings, as well as responsibility for investor relations, legal, marketing and PR activities for the company. 
  
 Throughout her time at ParthusCeva and Parthus, Elaine performed her work with enthusiasm and a very high degree of competency. The nature
of the work was such that it required excellent communication and problem solving skills with the ability to maintain a high level of financial competency in a high-pressure working environment, Elaine had all of these necessary qualities and
brought them to bear in the execution of her role as CFO. Elaine also had a great understanding of the technology employed by the company, as well as a command of the terminology and market environment . 
  
 I worked closely with Elaine in my role as founder and CEO of the Company and am sorry to see
her leave. I would have no hesitation in recommending her for a similar role in any organization. If any more information is required, please do not hesitate to contact me. 
  
 Yours sincerely, 
  
 Brian Long 
 Vice ChairmanLETTER AGREEMENT

 EXHIBIT 10.4 
  
 [ParthusCeva, Inc. Letterhead] 
  
 June 2, 2003 
  
 Chester J. Silvestri 
 13935 La Paloma Road 
 Los Altos Hills, CA 94022 
  
 Dear Chet,

  
 On behalf of ParthusCeva, Inc. (the Company), we are pleased to offer you the
position of President and Chief Executive Officer of the Company. Speaking on behalf of Chris and I, as well as the other members of the Company’s Board of Directors, we are all very impressed with you and your credentials and look forward to
your future success in this position. 
  
 The terms of your new position with the
Company are set forth below: 
  
 You will become President and Chief Executive
Officer of the Company as well as a Member of the Board of Directors. As President and Chief Executive Officer, you will have responsibility for the general management of the Company’s business and such duties and responsibilities as may be
assigned by the Board of Directors to whom you will report. 
  
 You will be paid a
monthly base salary of $25,000, which is equivalent to $300,000 on an annualized basis. Your salary will be payable pursuant to the Company’s regular payroll policy. You will be eligible for an annual performance bonus of up to 75% of your
annual salary predicated upon achieving specific goals and objectives. The details of this bonus plan will be worked out jointly between you and the Board within sixty (60) days after you join the Company. 
  
 In addition, upon becoming an employee of the Company, we will recommend that the Board of
Directors grant you an option to purchase an aggregate of 4% of the outstanding shares of ParthusCeva Common Stock as of April 28, 2003, i.e. 720,000 shares of Common Stock, at an exercise price equal to the fair market value of the Common Stock on
the date of the grant, as determined by the Board of Directors. These option shares will vest at the rate of one-fourth (1/4th) of the total number of shares on the first anniversary of your date of employment, and an additional one-forty-eighth (1/48th) of the total number of shares at the end of each one-month period thereafter. 
  
 During the first twelve (12) months of your employment, in the event of termination by you for Good Reason or termination by the Company without Cause in each case
following a Change in Control, 50% of your unvested options will immediately vest. Beginning your thirteenth (13) month of employment, in the event of termination by you for Good Reason or termination by the Company without Cause in each case
following a 

 Change in Control, all of your unvested options will immediately vest. “Change of Control,” “Good
Reason” and “Cause” shall have the definitions prescribed to such terms in the attached Exhibit A. 
  
 In the event of the involuntary termination of your position as President and Chief Executive Officer for any reason not involving Cause, conditioned upon your execution
of a waiver and release of claims that is acceptable to the Company, the Company will continue to pay your base salary plus standard benefits for nine (9) months following such termination. This salary and benefit continuance is designed to bridge
you to your next employment therefore it will in any event cease if and when you obtain other employment prior to the end of the nine-month period. 
  
 You will be eligible to participate in the Company’s standard benefits program, details of which will be sent under separate cover. 
  
 This offer of employment is contingent upon (1) your signing of the Company’s Employee
Proprietary Information Agreement, and (2) your providing proof of your eligibility to work in the U.S. 
  
 Your employment with the Company will be on an “at will” basis, meaning that either you or the Company may terminate your employment at any time for any reason or no reason. 
  
 Chet, we are all delighted to be able to extend you this offer and look forward to working
with you. 
  
 To indicate your acceptance of the Company’s offer, please sign
and date this letter in the space provided below and return it to me. 
  
 Sincerely, 
  
 Zvi Limon 
  
 /s/ Zvi Limon 
  
 Sven-Christer Nilsson 
  
 /s/ Sven-Christer Nilsson 
  
 Accepted and Agreed: 
  
 Signature: /s/ Chester
J. Silvestri             
  
 Start Date: June 9, 2003             

 Exhibit A 
  
 “Cause” shall mean (a) a good faith finding by the Board of Directors of the Parent (other than the Employee) (the
“Board”) that the Employee has failed to perform his reasonably assigned duties for the Company or Parent and has failed to remedy such failure within 15 days following written notice from the Company to the Employee notifying him of such
failure, (b) the Employee has willfully engaged in illegal conduct or gross misconduct which is materially and demonstrably injurious to the Company and/or Parent, (c) the conviction of the Employee of, or the entry of a pleading of guilty or nolo
contendere (or any analogous proceeding) by the Employee to, any crime involving moral turpitude or any felony; (d) the Employee is adjudicated bankrupt or makes any arrangement or composition with the Employee’s creditors; or (e) the Employee
becomes of unsound mind or is committed as patient for the purposes of any legislation relating to mental health. 
  
 “Good Reason” for termination shall mean the occurrence, without the Employee’s written consent, of any of the events or circumstances set
forth in clauses (a) through (e) below. Notwithstanding the occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute Good Reason if such event or circumstance has been fully corrected and the Employee has been
reasonably compensated for any losses or damages resulting therefrom (provided that such right of correction by the Company shall only apply to the first notice of termination for Good Reason given by the Employee) within 15 days following written
notice from the Employee to the Company notifying the Company of such event. 
  
 (a) the assignment to the Employee of duties inconsistent in any material respect with the Employee’s position (including status, offices, titles and reporting requirements), authority or responsibilities, or any
other action or omission by the Company or Parent which results in a material diminution in such position, authority or responsibilities; 
  
 (b) a reduction in the Employee’s annual base salary or as it may be increased from time to time, except for a comparable reduction in salary
affecting all similarly situated employees; 
  
 (c) the failure
by the Company to (i) continue in effect any material compensation or benefit plan or program (including without limitation any life insurance, medical, health and accident or disability plan and any vacation or automobile program or policy) (a
“Benefit Plan”) in which the Employee participates or which is applicable to the Employee, unless an equitable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan or program, (ii)
continue the Employee’s participation therein (or in such substitute or alternative plan), or in any option plan of the Company or Parent, on a basis not materially less favorable, both in terms of the amount of benefits provided and the level
of the Employee’s participation relative to other participants, than the basis existing on the date of the Agreement or as may be agreed from time to time by the Company and the Employee or (iii) award cash bonuses to the Employee in amounts
and in a manner substantially 

 consistent with awards to other members of the senior management team in light of the Employee’s
title and responsibilities; 
  
 (d) a change by the Company in the
location at which the Employee performs his principal duties for the Company to a new location that is both (i) more than 35 kilometers further from the Employee’s principal residence than the location at which the Employee currently performs
his principal duties for the Company and (ii) more than 35 kilometers from the location at which the Employee performs his principal duties for the Company; or 
  

(e) any material breach by the Company of its obligations to the Employee. For purposes of this Agreement, the Employee’s right to terminate his
employment for Good Reason shall not be affected by his incapacity due to physical or mental illness. 
  
 “Change in Control” shall mean the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the
Parent, a transaction involving the sale of the voting stock of the Parent or a sale or other disposition of all or substantially all of the assets of the Parent in one or a series of transactions (a “Business Combination”), unless,
immediately following such Business Combination, all or substantially all of the individuals and entities who were the beneficial owners of the Common Stock of the Parent immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors of the resulting or acquiring corporation in such Business Combination in substantially the same
proportions as their ownership of the Common Stock of the Parent immediately prior to such Business Combination.

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