Document:

Exhibit 10.5

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

OF DAVIDI
GILO

WITH

VYYO INC.

 

THIS AMENDED
AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), made and entered into as of February 1,
2008 (the “Restatement Date”), by and between VYYO INC., a Delaware corporation
(hereinafter the “Corporation”), and DAVIDI GILO (hereinafter “Gilo”).

 

RECITALS

 

A.            The
Corporation previously employed Gilo as Chief Executive Officer and Chairman of
the Corporation’s Board of Directors pursuant to the terms of an Employment
Agreement between the Corporation and Gilo made and entered into as of February 10,
2006   (the “Effective Date”), and as Chairman of the
Corporation’s Board of Directors pursuant to the terms of an Amended and
Restated Employment Agreement between the Corporation and Gilo made and entered
into as of April 5, 2007, subject to election to the Board of Directors by
the Corporation’s stockholders and until Gilo’s successor is duly appointed and
elected.  The Corporation and Gilo now desire
to enter this Agreement as of the Restatement Date under the terms set forth below.

 

B.            In
connection with Gilo’s employment with the Corporation, the Corporation and
Gilo desire to enter into this Agreement according to the terms and conditions
set forth below.

 

AGREEMENT

 

NOW,
THEREFORE, the
parties hereto hereby agree as follows:

 

1.             Employment Duties.

 

a.             General.  The Corporation hereby agrees to employ Gilo,
and Gilo hereby agrees to accept employment with the Corporation, on the terms
and conditions hereinafter set forth.

 

b.             Corporation’s
Duties.  The Corporation
shall allow Gilo to, and Gilo shall, perform responsibilities normally incident
to the position of Chairman of the Board of Directors, commensurate with his
background, education, experience and professional standing.  The Corporation shall provide Gilo with such
office equipment, supplies, customary services and cooperation suitable for the
performance of his duties.

 

 

c.             Gilo’s
Duties.  Unless otherwise
agreed to by the parties, Gilo shall serve as Chairman of the Board of the
Corporation, subject to the vote of the stockholders and Board of Directors as
applicable, and until Gilo’s successor is duly appointed and elected.  Gilo shall devote approximately twenty (20)
hours per week to the business of the Corporation, and shall not become engaged
to render similar services on behalf of any other entity while employed
hereunder which is in any way competitive to the Corporation, without the
consent of the Corporation’s Board of Directors.  Gilo shall report directly to the Corporation’s
Board of Directors.

 

2.             Term.    The initial
term of this employment agreement is three (3) years from the Effective
Date (the “Initial Term”).  Thereafter,
this Agreement may be renewed by Gilo and the Corporation on such terms as the
parties may agree to in writing.  Absent
written notice to the contrary, thirty (30) days prior to the end of the Initial
Term, this Agreement will be automatically renewed for consecutive one (1) year
extensions (together with the Initial Term, the “Term”).  Should the Initial Term not be renewed after
the expiration of the first three (3) year term, Gilo shall be entitled to
severance in exchange for a release as to any and all claims Gilo may have
against the Corporation as provided in Section 6.d.

 

3.             Compensation. 
Gilo shall be compensated as follows:

 

a.             Fixed
Salary.  Gilo shall
receive Twelve Thousand Dollars ($12,000) fixed annual salary.  The Corporation agrees to review the fixed
salary on or before December 31, 2007, and thereafter at the end of each
calendar year during the Term based upon Gilo’s services and the financial
results of the Corporation, and to make any increase as may be determined
appropriate in the sole discretion of the Corporation’s Compensation Committee
or Board of Directors.

 

b.             Payment.  Gilo’s fixed salary shall be payable on a
semi-monthly basis, in accordance with the Corporation’s usual payroll
practices.

 

c.             Bonus
Compensation. During the Term, Gilo shall participate in such bonus
plan(s) adopted by the Corporation’s Board of Directors, from time to time.   Gilo shall be entitled to receive an
additional annual bonus based on his performance and that of the Corporation
each year as determined by the Board of Directors of this Corporation, or its
Compensation Committee; provided, however, that in no event will such date be
later than the date that is two and one-half months from the end of the later
of (i) Gilo’s first taxable year in which Gilo’s bonus is determined or (ii) the
Corporation’s taxable year in which the bonus award is determined.  The bonus shall be prorated should Gilo’s
employment terminate prior to the full calendar year.

 

d.             Stock Options.  Gilo shall be eligible for certain stock
options that may be awarded by the Corporation, from time to time.

 

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e.             Vacation.  Gilo shall accrue paid vacation at the rate
of thirty (30) days for each twelve (12) months of employment, up to a maximum
of 60 working days.  Gilo shall be
compensated at his usual rate of compensation during any such vacation.  Gilo shall be entitled to paid holidays as
generally given by the Corporation.  Gilo
shall receive sick leave or disability leave in accordance with the terms of
the Corporation’s standard sick leave or disability leave policy.

 

f.              Benefits.  During the Term, Gilo and his dependents
shall be entitled to participate in any group plans or programs maintained by
the Corporation for any employees relating to group health, disability, life
insurance and other related benefits as in effect from time to time. Gilo shall
also be entitled to Director and Officer (“D&O”) insurance in such amounts
and coverage and such indemnification provisions as are afforded other officers
and directors of the Corporation. 
Benefits under this Section 3.f. will be paid by the Corporation.

 

g.             Expenses.  The Corporation shall reimburse Gilo for his
normal and reasonable expenses incurred for travel, entertainment and similar
items in promoting and carrying out the business of the Corporation in
accordance with the Corporation’s general policy as adopted by the Corporation’s
management from time to time.  In
addition, Gilo shall be reimbursed for the reasonable costs associated with
cellular telephone usage and shall be entitled to reimbursement for such
reasonable continuing professional education, memberships and certifications as
are deemed normal and appropriate for a Chairman of the Board of Directors.  As a condition of payment or reimbursement,
Gilo agrees to provide the Corporation with copies of all available invoices
and receipts, and otherwise account to the Corporation in sufficient detail to
allow the Corporation to claim an income tax deduction for such paid item, if
such item is deductible.  Reimbursements
shall be made on a monthly or more frequent basis in accordance with the
Corporation’s reimbursement policies.  In
no event shall any reimbursement payment be made later than the end of Gilo’s
taxable year following the taxable year in which the expense is incurred.

 

4.             Confidentiality and
Competitive Activities.  Gilo agrees
that during the Term he is in a position of special trust and confidence and
has access to confidential and proprietary information about the Corporation’s
business and plans.  Gilo agrees that he
will not directly or indirectly, either as an employee, employer, consultant,
agent, principal, partner, stockholder, corporate officer, director, or in any
similar individual or representative capacity, engage or participate in any
business that is in competition, in any manner whatsoever, with the
Corporation.  Notwithstanding anything in
the foregoing to the contrary, Gilo shall be allowed to invest as a shareholder
in publicly traded companies, or through a venture capital firm or an
investment pool.

 

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5.             Trade Secrets.

 

a.             Special
Techniques.  It is hereby
agreed that the Corporation has developed or acquired certain products,
technology, unique or special methods, manufacturing and assembly processes and
techniques, trade secrets, special written marketing plans and special customer
arrangements, and other proprietary rights and confidential information and
shall during the employment term continue to develop, compile and acquire said
items (all hereinafter collectively referred to as the “Corporation’s Property”).  It is expected that Gilo will gain knowledge
of and utilize the Corporation’s Property during the course and scope of his
employment with the Corporation, and will be in a position of trust with respect
to the Corporation’s Property.

 

b.             Corporation’s
Property.  It is hereby
stipulated and agreed that the Corporation’s Property shall remain the
Corporation’s sole property.  In the
event that Gilo’s employment is terminated, for whatever reason, Gilo agrees
not to copy, make known, disclose or use, any of the Corporation’s Property
without the Corporation’s prior written consent.  In such event, Gilo further agrees not to
endeavor or attempt in any way to interfere with or induce a breach of any
prior proprietary contractual relationship that the Corporation may have with
any employee, customer, contractor, supplier, representative, or distributor
for nine (9) months after any termination of this Agreement.  Gilo agrees upon termination of employment to
deliver to the Corporation all confidential papers, documents, records, lists
and notes (whether prepared by Gilo or others) comprising or containing the
Corporation’s Property.  Gilo recognizes
that violation of covenants and agreements contained in this Section 5 may
result in irreparable injury to the Corporation which would not be fully
compensable by way of money damages.

 

6.             Termination.

 

a.             General.  The Corporation may terminate this Agreement
without cause, on ninety (90) days written notice.  Gilo may voluntarily terminate his employment
hereunder upon ninety (90) days’ advance written notice to the Corporation.

 

b.             Termination
for Cause.  The
Corporation may immediately terminate Gilo’s employment at any time for
cause.  Termination for cause shall be
effective from the receipt of written notice thereof to Gilo specifying the
grounds for termination and all relevant facts. 
Cause shall be deemed to include: 
(i) material neglect of his duties or a significant violation of
any of the provisions of this Agreement, which continues after written notice
and a reasonable opportunity (not to exceed thirty (30) days) in which to cure;
(ii) fraud, embezzlement, defalcation or conviction of any felonious
offense; or (iii) intentionally imparting confidential information
relating to the Corporation or any of its subsidiaries or their business to
competitors or to other third parties other than in the course of carrying out
his duties hereunder.  The Corporation’s
exercise of its rights to terminate with cause shall be without prejudice to
any other remedies it may be entitled at law, in equity, or under this
Agreement.

 

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c.             Termination
Upon Death or Disability. 
This Agreement shall automatically terminate upon Gilo’s death.  In addition, if any disability or incapacity
of Gilo to perform his duties as the result of any injury, sickness, or
physical, mental or emotional condition continues for a period of thirty (30)
business days (excluding any accrued vacation) out of any one hundred twenty
(120) calendar day period, the Corporation may terminate Gilo’s employment upon
written notice.  Payment of salary to
Gilo during any sick leave shall only be to the extent that Gilo has accrued
sick leave or vacation days.

 

d.             Severance
Pay.  If this Agreement is
terminated by the Corporation without cause pursuant to Section 6.a.
(above) and Gilo experiences a “Separation From Service” as defined under Section 409A
of the Internal Revenue Code and the regulations and guidance promulgated
thereunder (“Section 409A”),  the
Corporation shall pay Gilo a severance fee equal to the greater of  (a) the full amount of the compensation
that he could have expected under this Agreement (based on Gilo’s total
compensation (salary and bonus) earned in 2007), as and when payable under this
Agreement, through the end of the Initial Term; or (b) the full amount of
the compensation that he could have expected under this Agreement for eighteen
(18) months (based on Gilo’s total compensation (salary and bonus) earned in
2007 as and when payable under the Agreement), without deduction except for tax
withholding amounts, and any unvested options held by Gilo shall vest
immediately, in exchange for the execution of a binding release as to any and
all claims Gilo may have against the Corporation. If this Agreement is
terminated without cause after the Initial Term and Gilo experiences a
Separation From Service, the Corporation shall pay Gilo a severance fee equal
to the full amount of the compensation that he could have expected under this
Agreement for eighteen (18) months (based on Gilo’s total compensation (salary
and bonus) earned in 2007 as and when payable under this Agreement), without
deduction except for tax withholding amounts, and any unvested options
held by Gilo shall vest immediately, in exchange for the execution of a binding
release as to any and all claims Gilo may have against the Corporation. If this
Agreement is terminated by the Corporation for cause, pursuant to Section 6.b,
the Corporation shall pay to Gilo a severance fee equal to the full amount of
the compensation that he could have expected under this Agreement for three (3) months
(based on Gilo’s total compensation (salary and bonus) earned in 2007 as and
when payable under this Agreement), without deduction except for tax
withholding amounts, in exchange for the execution of a binding release as to
any and all claims Gilo may have against the Corporation.  If this Agreement is terminated voluntarily
by Gilo, the Corporation shall pay to Gilo a severance fee equal to the amount
of the compensation that he could have expected under this Agreement for nine (9) months
(based on Gilo’s total compensation (salary and bonus) earned in 2007 as and
when payable under this Agreement), without deduction except for tax
withholding amounts, in exchange for the execution of a binding release as to
any and all claims Gilo may have against the Corporation.

 

5

 

e.             Change in
Control.  If Gilo
becomes entitled to severance pay under Section 6.d. above on or after January 1,
2009, and within one year following a Change in Control (as defined below),
then the severance pay shall be calculated as provided under Section 6.d.
but paid in a lump sum within five (5) business days of the Change in
Control.  If Gilo becomes entitled to
severance pay under Section 6.d. during 2008 following a Change in Control
(as defined below) that occurs during 2008, then the severance pay shall be
calculated and paid as provided under Section 6.d. until January 1,
2009, at which time the remaining unpaid severance pay shall be paid in a lump
sum.  A “Change in Control” means the
occurrence of any of the following events:

 

i.              any
“person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as
defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the then outstanding
shares of the Corporation’s common stock or the total voting power represented
by the Corporation’s then outstanding voting securities (other than pursuant to
a Business Combination which is covered by clause (iii) below);

 

ii.             the
consummation of the sale or other disposition (including in whole or in part
through licensing arrangement(s)) of all or substantially all of the
Corporation’s assets, other than sales, other dispositions or licenses of
assets made to a parent or a wholly-owned subsidiary of the Company, or an entity
under common control with the Company;

 

iii.            the
consummation of a reorganization, merger, statutory share exchange or
consolidation or similar transaction involving the Corporation or the
acquisition of assets or stock of another entity by the Corporation or any of
its subsidiaries, or a series of related such transactions (each, a “Business
Combination”), in each case unless following such Business Combination (A) the
voting securities of the Corporation outstanding immediately prior thereto
continue to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any entity (a “Parent”) that,
as a result of such transaction, owns the Corporation or the surviving entity
or all or substantially all of the Corporation’s or surviving entity’s assets
directly or through one or more subsidiaries) at least 50% of the total voting
power represented by the Corporation’s voting securities or such surviving
entity or Parent outstanding immediately after such Business Combination; and (B) no
person (excluding any entity resulting from such Business Combination or a
Parent or any employee benefit plan (or related trust) of the Corporation or
such entity resulting from such Business Combination or Parent) beneficially
owns, directly or indirectly, 50% or more of, respectively, the
then-outstanding shares of common stock of the entity resulting from such
Business Combination or the total voting power of the then-outstanding voting
securities of such entity, except to the extent that the ownership in excess of
50% existed prior to the Business Combination; or

 

iv.            approval
by the Corporation’s stockholders of a complete liquidation or dissolution of
the Corporation other than in the context of a transaction or series of related
transactions that would not constitute a Change of Control under clause (iii) above.

 

6

 

7.             Delay in Payment.

 

a.             Release Delay.  Except as provided in Section 7.b., any
amount payable pursuant to Section 6.d. that is subject to Section 409A
shall commence on the first payroll on or after the fifty-third (53rd)
day after Gilo’s Separation From Service without regard to whether Gilo earlier
signs the binding release or waives his revocation right prior to the
expiration of the fifty-three (53) day period. 
Except as provided in Section 7.b., any amount payable pursuant to Section 6.e.
that is subject to Section 409A shall be paid on the fifty-third (53rd)
day after Gilo’s Separation From Service without regard to whether Gilo earlier
signs the binding release or waives his revocation prior to the expiration of
the fifty-three (53) day period.

 

b.             Specified Employee Delay. 
Notwithstanding any other timing provision in this Agreement, if at the
time the payments under Section 6.d. would commence, Gilo is a “specified
employee” as defined by Section 409A, then to the extent necessary to
avoid the imposition of excise taxes or other penalties under Section 409A,
no payment may be paid before the date that is six (6) months after Gilo’s
Separation From Service.  Payments to
which Gilo would otherwise have been entitled during that six months will be
accumulated and paid on the first day after six months following the date of
Gilo’s Separation From Service.  All
payments that would otherwise be made more than six (6) months following
the date of Gilo’s Separation From Service will be made in accordance with the
general timing provisions provided in this Agreement.

 

8.             Corporate Opportunities.

 

a.             Duty to Notify. 
In the event that Gilo, during the Term, shall become aware of any
material and significant business opportunity directly related to any of the
Corporation’s significant businesses, Gilo shall promptly notify the
Corporation’s Board of Directors of such opportunity.  Gilo shall not appropriate for himself or for
any other person other than the Corporation, or any affiliate of the
Corporation, any such opportunity unless, as to any particular opportunity, the
Board of Directors of the Corporation fails to take appropriate action within
thirty (30) days.  Gilo’s duty to notify
the Corporation and to refrain from appropriating all such opportunities for
thirty (30) days shall neither be limited by, nor shall such duty limit, the
application of the general law of Delaware relating to the fiduciary duties of
an agent or employee.

 

b.             Failure to Notify. 
In the event that Gilo fails to notify the Corporation of, or so
appropriates, any such opportunity without the express written consent of the
Corporation, Gilo shall be deemed to have violated the provisions of this Section notwithstanding
the following:

 

i.              The capacity in which Gilo shall have
acquired such opportunity; or

ii.             The probable success in the Corporation’s
hands of such opportunity.

 

7

 

8.             Miscellaneous.

 

a.             Entire
Agreement.  This Agreement
constitutes the entire agreement and understanding between the parties with
respect to the subject matters herein, and supersedes and replaces any prior
agreements and understandings, whether oral or written between them with
respect to such matters.  The provisions
of this Agreement may be waived, altered, amended or repealed in whole or in
part only upon the written consent of both parties to this Agreement.

 

b.             No
Implied Waivers.  The
failure of either party at any time to require performance by the other party
of any provision hereof shall not affect in any way the right to require such
performance at any time thereafter, nor shall the waiver by either party of a
breach of any provision hereof be taken or held to be a waiver of any
subsequent breach of the same provision or any other provision.

 

c.             Personal
Services.  It is
understood that the services to be performed by Gilo hereunder are personal in
nature and the obligations to perform such services and the conditions and
covenants of this Agreement cannot be assigned by Gilo.  Subject to the foregoing, and except as
otherwise provided herein, this Agreement shall inure to the benefit of and
bind the successors and assigns of the Corporation.

 

d.             Severability.  If for any reason any provision of this
Agreement shall be determined to be invalid or inoperative, the validity and
effect of the other provisions hereof shall not be affected thereby, provided
that no such severability shall be effective if it causes a material detriment
to any party.

 

e.             Applicable
Law.  This Agreement shall
be governed by and construed in accordance with the laws of the State of
Delaware.

 

f.              Notices.  All notices, requests, demands, instructions
or other communications required or permitted to be given under this Agreement
shall be in writing and shall be deemed to have been duly given upon delivery,
if delivered personally, or if given by prepaid telegram, or mailed
first-class, postage prepaid, registered or certified mail, return receipt
requested, shall be deemed to have been given seventy-two (72) hours after such
delivery, if addressed to the other party at the addresses as set forth on the
signature page below.  Either party
hereto may change the address to which such communications are to be directed
by giving written notice to the other party hereto of such change in the manner
above provided.

 

g.             Merger,
Transfer of Assets, or Dissolution of the Corporation.  This Agreement shall not be terminated by any
dissolution of the Corporation resulting from either merger or consolidation in
which the Corporation is not the consolidated or surviving corporation or a
transfer of all or substantially all of the assets of the Corporation.  In such event, the rights, benefits and
obligations herein shall automatically be assigned to the surviving or
resulting corporation or to the transferee of the assets. Upon such merger all
unvested options held by Gilo shall be vested immediately.

 

8

 

IN
WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.

 

	
  VYYO INC.

  	
   

  	
  DAVIDI GILO

  
	
  a Delaware corporation

  	
   

  	
   

  
	
  6625 The Corners
  Parkway, Suite 100

  	
   

  	
   

  
	
  Norcross, Georgia 30092

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Lewis S. Broad 

  	
   

  	
  /s/ David Gilo

  
	
  Lewis
  Broad, Chairman of 

  	
   

  	
  (Signature)

  
	
  the
  Compensation Committee

  	
   

  	
   

  
				

 

9Exhibit 10.12

 

SEPARATION AGREEMENT AND
RELEASE

 

This Separation Agreement
and Release (the “Agreement”) is
between VYYO INC. (“Vyyo”)
and Avner Kol (“Mr. Kol”).  The terms “Avner Kol”
and “Mr. Kol” include Avner Kol and any
of his heirs, executors, beneficiaries and assigns.  The terms “Vyyo Inc.”
and “Vyyo” include all affiliates,
subsidiaries, predecessor and successor corporations of Vyyo Inc., and any of
its present, former and future stockholders, agents, officers, directors and
employees.  This Agreement shall be
effective on the date which is eight days after it is signed by both parties
(the “Effective Date”).

 

RECITALS

 

·              Effective January 30, 2008
(the “Termination Date”), Mr. Kol’s
employment with Vyyo terminated.

 

·              Even though Mr. Kol has made no
claims against Vyyo, Mr. Kol and Vyyo desire to resolve any and all claims
and potential claims Mr. Kol may have against Vyyo.

 

·              This Agreement supersedes all
previous agreements and understandings regarding Mr. Kol’s employment with
Vyyo or his termination of employment with Vyyo, including, but not limited to,
the offer letter dated November 1, 2005 and any prior severance agreements.  This Agreement is also an amendment of the
offer letter for purposes of compliance with Section 409A of the Internal Revenue
Code (“Section 409A”).

 

ACCORDINGLY,
the parties agree as follows:

 

1.             Termination
of Employment.  Mr. Kol’s
employment with Vyyo terminated on the Termination Date in a manner that
constituted a “separation from service” under Section 409A.  As of the Termination Date, Mr. Kol’s
duties at Vyyo ceased.

 

2.             Separation
Consideration.

 

(a)           Severance.  In exchange for this Agreement, Vyyo will pay
to Mr. Kol as severance One Hundred Four Thousand One Hundred Sixty-Six Dollars
and Sixty-Seven Cents ($104,166.67), which amount constitutes five (5) month’s
salary, subject to applicable tax withholding (“Severance
Payment”).  The Severance
Payment consists of the severance payments set forth in Mr. Kol’s offer
letter dated November 1, 2005, and is inclusive of all amounts due and/or
payable by Vyyo to Mr. Kol however classified, including any accrued
paid-time off and any relocation expenses. 
The Severance Payment will be made in the form of salary continuation
payments and will be paid on regular Vyyo paydays. Payments hereunder will
commence the first payday as soon as administratively possible after this
Agreement has been fully executed and received by Vyyo’s Legal Department and
the applicable revocation periods described in this Agreement have expired.  Mr. Kol understands that Vyyo may change
payroll dates or schedules, or otherwise modify its payroll plans for its
active employees, and that to the extent he is entitled to any such coverage
after the Termination Date, those changes will be applied to him as well,
unless the change would violate Section 409A.  Except as required by applicable law or
provided in this Agreement, as of the Termination Date, Mr. Kol will cease
to be eligible to participate under, or covered by, any insurance or
self-insured welfare benefit, bonus, incentive compensation, commission, life
insurance, retirement or other compensation or benefit plans, and has no rights
under any of those plans, unless the terms of the plan provide for coverage
following separation from employment. 
The Severance Payment will be paid in full no later than December 31,
2008.

 

1

 

(b)           COBRA.  If Mr. Kol elects COBRA coverage under
Vyyo’s health insurance plans, Vyyo shall pay to Vyyo’s health insurance provider
One Thousand Six Hundred Ninety-One Dollars and Seventy Cents ($1,691.70) per
month, constituting the cost of Mr. Kol’s health insurance premiums for
the period beginning on the Effective Date and continuing through the earlier
of the date that Mr. Kol is covered under a health insurance program other
than through Vyyo or December 31, 2008, subject to applicable tax and paid
on regular Vyyo paydays.  If Mr. Kol
elects COBRA coverage under Vyyo’s health insurance plans, Mr. Kol shall
have an affirmative obligation to promptly advise Vyyo when he is covered under
another health insurance program or plan, after which time Vyyo’s obligation to
make the payments in this Section 2(b) shall immediately cease.

 

(c)           Reimbursable
Expenses.  To the extent Mr. Kol
has not already done so, he will promptly submit to Vyyo, and Vyyo will
promptly reimburse him for, all of his business expenses (incurred consistent
with Vyyo’s policies in effect on the Termination Date) attributable to the
period on or before the Termination Date.

 

(d)           Status of
Stock Options.  As of December 31, 2008, Mr. Kol
shall hold fully-vested stock options to purchase 237,334 shares of Vyyo common
stock (being 40,000 shares vested under grant number 880, the exercise period
of which shall be extended to March 31, 2009 as set forth below in this
section; 12,643 shares vested under grant number 1360; 53,233 shares vested
under grant number 1361; 80,000 shares vested under grant number 1444; and 51,458
shares vested under grant number 1497) (the “Vested
Options”).  The remaining unvested
stock options under grant numbers 1185, 1186, 1194, 1195, 1202, 1203, 1360,
1361, 1496 and 1497 shall be forfeited and Mr. Kol shall have no further
rights in such grants.  As of the Termination Date and December 31,
2008, Mr. Kol does not and will not hold any other stock options,
exercisable and outstanding or otherwise. 
For the avoidance of doubt, Mr. Kol will be allowed to exercise the
Vested Options (and only the Vested Options) as set forth above no later than three
(3) months after December 31, 2008, being March 31, 2009.  In the event of any inconsistency between any
stock option agreement and this Agreement, the provisions of this Agreement
shall control.

 

(e)           Delay in Payment.  Notwithstanding any other timing provision in
this Agreement, if, at the time the Severance Payment would commence, Mr. Kol
is a “specified employee” as defined by Section 409A, then to the extent
necessary to avoid the imposition of excise taxes or other penalties under Section 409A,
no payment may be paid before the date that is six months after the termination
of Mr. Kol’s employment.  Payments
to which Mr. Kol would otherwise have been entitled during that six months
will be accumulated and paid on the first day after six months following the
date of Mr. Kol’s termination of employment.  All payments that would otherwise be made
more than six months following the date of Mr. Kol’s termination of
employment will be made in accordance with the general timing provisions
described above.

 

3.             Employee
Proprietary Information and Inventions Agreement.  Mr. Kol acknowledges that he is bound by
the Employee Proprietary Information and Inventions Agreement executed in
connection with his commencement of employment, and as a result of such employment
with Vyyo, Mr. Kol had access to Vyyo’s proprietary information and trade
secrets.  Mr. Kol shall hold all
such proprietary information and trade secrets in strictest confidence and
shall not make use of such proprietary information and trade secrets on behalf
of anyone.  Mr. Kol further confirms
that he has delivered to Vyyo all documents and data of any nature containing
or pertaining to such proprietary information and trade secrets and that he has
not taken with him any such documents or data or any reproduction thereof.

 

2

 

4.             Release.  Except as set forth in the second paragraph
of this Section, Mr. Kol and Vyyo (each, a “Releasing
Party”) hereby unconditionally, irrevocably and completely release
and forever discharge the other party hereto (a “Released
Party”) from any and all claims, rights, demands, actions,
obligations, liabilities and causes of action of every kind and character,
known or unknown, mature or unmatured, which the Releasing Party may now have
or has ever had, whether based on tort, contract (express or implied), or any
federal, state or local law, statute or regulation (collectively, the “Released Claims”). 
Released Claims shall include all statutory, common law, constitutional
and other claims, including but not limited to: 
any claims arising under (a) Title VII of the Civil Rights Act of
1964 or the Civil Rights Act of 1991, which prohibit discrimination based on
race, color, national origin, ancestry, religion or sex; (b) the Age
Discrimination in Employment Act, which prohibits discrimination based on age; (c) the
Equal Pay Act, which prohibits paying men and women unequal pay for equal work;
(d) the Americans with Disabilities Act and Sections 503 and 504 of the
Rehabilitation Act of 1973, which prohibit discrimination based on disability; (e) the
federal Worker Adjustment and Retraining Notification Act (WARN) and any
similar applicable state statute or regulation, which require that advance
notice be given of certain workforce reductions; (f) the Employee
Retirement Income Security Act and any similar applicable state statute or
regulation, which, among other things, protects employee benefits; (g) the
Fair Labor Standards Act of 1938 and any similar applicable state statute or
regulation, which regulate wage and hour matters; (h) the Family and
Medical Leave Act and any similar applicable state statute or regulation, which
require employers to provide leaves of absence under certain circumstances; (i) the
Sarbanes-Oxley Act of 2002, which, among other things, provides whistleblower
protection; (j) the labor and civil codes and constitution of any
applicable state; or (k) any other law prohibiting retaliation based on
exercise of a Released Party’s rights under any law, providing whistleblowers
protection or otherwise prohibiting retaliation; providing workers’
compensation benefits; protecting union activity; mandating leaves of absence;
prohibiting discrimination based on veteran status, military service or any
other factors; restricting an employer’s right to terminate employees or
otherwise regulating employment; enforcing express or implied employment
contracts; requiring an employer to deal with employees fairly or in good faith;
providing recourse for alleged wrongful or constructive termination or discharge;
tort, physical or personal injury, emotional distress, fraud, negligent
misrepresentation, defamation and similar or related claims and any other law
relating to salary, commission, compensation, benefits and other matters.  Mr. Kol specifically represents that he
has not been treated adversely on account of age, nor has he otherwise been
treated wrongfully in connection with employment with Vyyo or separation from
employment and that he has no basis for a claim under the Age Discrimination in
Employment Act.  Except as provided in
this Agreement, Mr. Kol specifically waives any right he may have to
receive benefits under any Vyyo severance plan, bonus plan, sick leave policy,
vacation pay policy, life or health insurance plans, offer letter or other
similar employment-related agreement or any other employee benefit plan. Mr. Kol
acknowledges that Vyyo relied on the representations and promises in this
Agreement in agreeing to pay the benefits described in subsection 2(a).  The Releasing Party likewise releases the
Released Party from any and all obligations for attorneys’ fees incurred in
regard to the above claims or otherwise.

 

Notwithstanding the
foregoing, Released Claims shall not include: (a) any claims based on obligations
created by or reaffirmed in this Agreement; (b) any claims based on any
indemnification obligations created by or reaffirmed in any indemnification agreement
between the parties hereto, in the Bylaws or Certificate of Incorporation of
Vyyo, or under applicable state laws and regulations; or (c) any claims,
rights, demands, actions, obligations, liabilities and causes of action of
every kind and character which Vyyo has or may have in the future as a result
of the gross negligence or willful misconduct of Mr. Kol.  Moreover, the release in this Agreement shall
not interfere with Mr. Kol’s ability to participate in any manner in an
investigation, proceeding or hearing conducted by the federal Equal Employment
Opportunity Commission or any state equivalent.

 

3

 

5.             Release
Applies to All Unknown or Unanticipated Damages.  The parties agree as further consideration
and inducement for this compromise settlement that this Agreement shall apply
to all unknown and unanticipated damages, including all future claims or causes
of action which may be alleged as a result of all acts and omissions in any way
related to Mr. Kol’s employment with Vyyo, or otherwise, subject to the
exclusions from the definition of Released Claims set forth in Section 4
above.

 

6.             Waiver.  The parties understand and agree that the
Released Claims include not only claims presently known to the Releasing Party,
but also include all unknown and unanticipated claims, rights, demands, actions,
obligations, liabilities and causes of action of every kind and character that
would otherwise come within the scope of the Released Claims as described in
this Agreement.  The Releasing Party
understands that he or it may hereafter discover facts different from what he
or it now believes to be true, which if known could have materially affected
this Agreement, but he or it nevertheless waives any claims or rights based on
different or additional facts.

 

The
only Released Claims not waived and released under this Section are those
concerning health insurance continuation benefits under COBRA, accrued but
unpaid paid-time-off and vested retirement benefits, if any exist.

 

7.             Confidentiality.  The parties understand and agree that this
Agreement and each of its terms, and the negotiations surrounding it, are
confidential and shall not be disclosed by Mr. Kol or Vyyo to any entity
or person other than attorneys or tax advisors, for any reason, at any time,
without the prior written consent of the other party, except as required by
law.  Any party violating this Section shall
pay to the other party the sum of Five Thousand Dollars ($5,000) for each
violation by him or it of the obligations of this Section.  Because the injury resulting from such a
violation would be impractical or extremely difficult to ascertain or estimate,
this sum is agreed upon as liquidated damages and is intended as compensation
for this injury and not as a penalty. 
The liquidated damages provided by this Section shall be in
addition to any other available remedy, and not in lieu thereof.

 

8.             Covenant Not
to Sue.  A Releasing Party
shall not sue or initiate against a Released Party any compliance review,
action or proceeding, or participate in the same, individually or as a member
of a class, under any contract (express or implied), or any federal, state or
local law, statute or regulation pertaining in any manner to the Released
Claims.  The Releasing Party will
withdraw with prejudice any such lawsuit or other legal action that may already
be pending.  Although this Agreement does
not preclude the Releasing Party from filing a charge with any administrative
agency, the Releasing Party promises never to seek or accept any damages,
remedies or other relief for the Releasing Party personally (any right to which
is hereby waived) by prosecuting such a charge, or otherwise, with respect to
any claim purportedly released by this Agreement.

 

9.             Employee in Good Standing.
Mr. Kol understands that if his employment continues beyond the date that
this Agreement is signed, he must perform his job at a performance level
acceptable to Vyyo and otherwise remain in good standing through the Termination
Date.  Mr. Kol understands that
resignation prior to the Termination Date; engaging in misconduct; termination
for cause, for performance problems, for job abandonment or due to other
circumstances within

 

4

 

Mr. Kol’s
control, or failure to perform duties in a manner acceptable to Vyyo prior to
the Termination Date, will render this Agreement null and void.  In addition, any misconduct or performance
problems discovered after the Termination Date, will render this Agreement null
and void and will result in forfeiture of all remaining separation pay,
benefits and other consideration described in Section 2(a), as well as the
obligation to repay all Severance Payments through the date of discovery, but
will not affect any other rights or obligations under the Agreement.

 

10.           Future Cooperation.  Mr. Kol agrees to cooperate with Vyyo
(including its employees, officers, directors, attorneys and representatives)
and to furnish complete and truthful information, testimony or affidavits in
connection with any matter that arose during his employment.  Such cooperation may be performed at
reasonable times and places and in a manner as not to interfere with any other
employment in which Mr. Kol may then be engaged.

 

11.           Non-Solicitation. 
During the one-year period after this Agreement, Mr. Kol will not
directly or indirectly recruit any employee with whom he worked or directly or
indirectly supervised during employment with Vyyo (other than any secretarial,
clerical or custodial employees) to work for another company or business; nor
will Mr. Kol assist anyone else in recruiting or hiring any such employee
to work for another company or business or discuss with any such person his or
her leaving the employ of Vyyo to engage in a business activity in competition
with Vyyo. During this same one-year period, Mr. Kol also will not
directly or indirectly solicit or encourage any customer of Vyyo (with whom Mr. Kol
had material contact during his employment with Vyyo) to purchase any product
or service of a type offered by or competitive with any product or service
provided by Vyyo, or to reduce the amount or level of business purchased by
such customer from Vyyo. These provisions shall be fully enforceable to the
fullest extent permitted by applicable law in such circumstances.

 

12.           Nonadmission.  The parties understand and agree that this is
a compromise settlement of potential disputed claims and that the furnishing of
the consideration for this Agreement shall not be deemed or construed at any
time or for any purpose as an admission of liability by Vyyo.  The liability for any and all claims is
expressly denied by Vyyo.

 

13.           Amendments.  This Agreement may not be amended except by
an instrument in writing, signed by each of the parties.

 

14.           Assignment.  The parties hereto agree that they will not
assign, sell, transfer, delegate or otherwise dispose of, whether voluntarily
or involuntarily, or by operation of law, any rights or obligations under this
Agreement.  Any such purported
assignment, transfer or delegation shall be null and void.  The parties hereto represent that they have
not previously assigned or transferred any claims or rights released by them
pursuant to this Agreement.  Subject to
the foregoing, this Agreement shall be binding upon and shall inure to the
benefit of the parties and their respective heirs, successors, attorneys and
permitted assigns.  In particular, any
payments to be made hereunder to Mr. Kol shall be paid to his heirs in the
event of his death.  This Agreement also shall
inure to the benefit of any Released Party. 
This Agreement shall not benefit any other person or entity except as
specifically enumerated in this Agreement.

 

15.           Return of Vyyo Property.  Mr. Kol acknowledges that any and all
computer (including applicable software licenses), telephone and other similar
equipment, credit cards or any other property provided to him by Vyyo are the
property of Vyyo and will be returned to Vyyo prior to or on the Termination
Date; provided, however, that Mr. Kol may
keep the laptop currently in Mr. Kol’s possession.

 

5

 

16.           Integration.  The parties understand and agree that the
preceding Sections recite the sole consideration for this Agreement; that no
representation or promise has been made by Mr. Kol or Vyyo concerning the
subject matter of this Agreement, except as expressly set forth in this
Agreement; and that all agreements and understandings between the parties
concerning the subject matter of this Agreement are embodied and expressed in
this Agreement.  This Agreement shall
supersede all prior or contemporaneous agreements and understandings between Mr. Kol
and Vyyo whether written or oral, express or implied.

 

17.           Severability.  If any provision of this Agreement, or its
application to any person, place or circumstance, is held by a court of
competent jurisdiction to be invalid, unenforceable or void, such provision
shall be deemed severable and shall not affect the validity and enforceability
of the remaining provisions of this Agreement. 
In addition, to the extent any such provision shall be determined by a court
to be unenforceable to any extent or to any degree, that provision shall not be
rendered invalid, but instead shall be automatically amended to such lesser
time period, degree, scope and/or extent as shall grant Vyyo the maximum
protection allowed by applicable law in such circumstances. In addition to and
not in lieu of its other legal rights, Vyyo shall have the right to an
injunction (without any required bond) to prevent any actual or threatened
violation of any provisions of the Sections of this Agreement regarding
confidentiality or non-solicitation, and to recover and/or cease making any
payments called for by this Agreement.

 

18.           Attorneys’ Fees.  In any legal action, arbitration or other
proceeding brought to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to recover reasonable attorneys’ fees and
costs.

 

19.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the law of the State of Georgia, without regard to
or application of its conflicts of law principles.

 

20.           Interpretation.  This Agreement shall be construed as a whole,
according to its fair meaning, and not in favor of or against any party.  By way of example and not limitation, this
Agreement shall not be construed in favor of the party receiving a benefit nor
against the party responsible for any particular language in this
Agreement.  Captions are used for
reference purposes only and should be ignored in the interpretation of the
Agreement.

 

21.           Knowing Consent to
Agreement.  The parties
acknowledge that (a) they have had the opportunity to consult counsel in
regard to this Agreement; (b) they have read and understand the Agreement
and are fully aware of its legal effect; and (c) they are entering into this
Agreement freely and voluntarily, and based on each party’s own judgment and
not on any representations or promises made by the other party, other than
those contained in this Agreement.

 

22.           Non-Disparagement.   Mr. Kol
agrees to conduct himself in a professional and positive manner in all of his
dealings, communications and contacts concerning Vyyo, his employment or
separation from employment.  Mr. Kol
agrees not to criticize, denigrate, disparage or make any derogatory statements
about Vyyo.  In particular, Mr. Kol
agrees not to make any derogatory statements about Vyyo (including any
subsidiaries or affiliates), its business plans, policies and practices, or
about any of its officers, employees or former officers or employees, to

 

6

 

customers,
competitors, suppliers, employees, former employees, members of the public,
members of the media or any other person, nor shall Mr. Kol harm or in any
way adversely affect the reputation and goodwill of Vyyo.  Mr. Kol also agrees not to damage any Vyyo
property or harm Vyyo in any way, including financially. Mr. Kol agrees
not to make any statement or announcement concerning his departure from Vyyo
except as may be reviewed and approve in writing by Vyyo in advance.  Nothing in this Section shall prevent Mr. Kol
from giving truthful testimony or information to law enforcement entities,
administrative agencies or courts or in any other legal proceedings as required
by law or otherwise by court order, including, but not limited to, assisting in
an investigation or proceeding brought by any governmental or regulatory body
or official related to alleged violations of any law relating to fraud or any rule or
regulation of the Securities and Exchange Commission.  If Mr. Kol violates this Section, he
shall pay to Vyyo the sum of Five Thousand Dollars ($5,000) for each violation
by him of the obligations of this Section. 
Because the injury resulting from such a violation would be impractical
or extremely difficult to ascertain or estimate, this sum is agreed upon as
liquidated damages and is intended as compensation for this injury and not as a
penalty.  The liquidated damages provided
by this Section shall be in addition to any other available remedy, and
not in lieu thereof.

 

23.           Older
Workers Benefit Protection Act.  Mr. Kol hereby represents and warrants
that:

 

(a)           He has carefully
read this Agreement and fully understands all of the provisions of this
Agreement;

 

(b)           He has had an opportunity to consult with an attorney of his choice as to the terms
of this Agreement to the full extent that he desired before signing
this Agreement;

 

(c)           He understands that this
Agreement forever releases Vyyo from any legal
action arising prior to the date of execution of this Agreement;

 

(d)           He has had the opportunity
to review and consider this Agreement for a period of
at least 45 days before signing it;

 

(e)           He understands that he shall have seven days following the execution of this Agreement to
revoke this Agreement.  To be effective, the revocation must be
in writing, delivered to Tashia L. Rivard, General Counsel, Vyyo Inc., 6625 The
Corners Parkway, Suite 100, Norcross, Georgia 30092, within the applicable
revocation period, or sent to Vyyo, at such address, by certified mail, return
receipt requested, postmarked within the applicable revocation period;

 

(f)            In signing this Agreement, he does not rely on nor has he relied on any representation or
statement (written or oral) not specifically set forth in this Agreement
by Vyyo or by any of Vyyo’s agents, representatives or attorneys with regard to
the subject matter, basis or effect of this Agreement or otherwise; and

 

(g)           He was not coerced,
threatened or otherwise forced to sign this Agreement, and he is voluntarily signing and delivering this Agreement of his own
free will, and that his signature appearing hereafter is genuine.

 

7

 

If
Mr. Kol exercises his right of revocation under this Section, Vyyo will
have the right to terminate this Agreement in its entirety.

 

 

	
  Dated:
  3/6/, 2008

  	
   

  	
  Dated:
  3/6, 2008

  

 

 

	
  VYYO
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Wayne H. Davis 

  	
   

  	
  /s/ Avner Kol

  
	
  Name:
  

  	
  Wayne
  H. Davis

  	
   

  	
  Avner
  Kol

  
	
  Title:

  	
  Chief
  Executive Officer

  	
   

  	
   

  
					

 

8

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