Document:

Exhibit 10.4

 

PERSONAL EMPLOYMENT AGREEMENT

 

This Personal Employment Agreement (“Agreement”) is entered into this    day of July 2015 (the “Effective Date”), by and between Lemonade Ltd., a private company incorporated under the laws of the State of Israel having its principal office at 38 Keren Hayesod Street, Jerusalem, Israel (the “Company”) and the employee whose details are specified in Annex A hereto (the “Employee”).

 

WITNESSETH

 

WHEREAS, the Company desires to engage the Employee in the position indicated hereinafter and the Employee represents that he has the requisite skills and knowledge to serve in such position; and

 

WHEREAS, the parties desire to state the terms and conditions of the Employee’s engagement with the Company, effective as of the Employment Starting Date, as such term is defined hereinafter, all subject to the terms set forth below.

 

NOW THEREFORE, in consideration of the mutual promises contained herein, and intending to be legally bound, the parties hereto hereby declare and agree as follows:

 

1.                            Appointment; The Position

 

1.1                     The Company hereby appoints the Employee to the position detailed in Annex A. The Employee shall perform the services and duties hereunder in accordance with the Company’s policy, under the supervision of the person(s) detailed in Annex A and in accordance with his/her instructions and in any other framework as the Company shall direct in order to facilitate its needs.

 

1.2                     The parties hereto warrant and confirm that Employee’s employment by the Company shall commence on the date specified in Annex A (the “Employment Starting Date”). The provisions of this Agreement shall apply to the parties as of the Employment Starting Date.

 

1.3                     The Employee shall perform his/her duties hereunder at the Company’s principal offices indicated above or at such other offices in either the Jerusalem or Tel Aviv areas. The Employee acknowledges and agrees that the performance of his/her duties hereunder may require domestic and international travel.

 

1.4                     This Agreement is specific and personal and exclusively determines the Employee’s terms of employment.

 

2.                            Devotion of Time

 

2.1                     As of the Employment Starting Date, Employee shall devote the required and necessary business time, attention and efforts to the performance of his/her duties and responsibilities hereunder. The Employee shall perform the duties and responsibilities hereunder with expertise and in a professional and efficient manner.

 

2.2                     During the term of this Agreement, and unless and until otherwise agreed, Employee shall be employed on a full-time basis, with Friday and Saturday as rest days.

 

 

The performance of Employee’s responsibilities requires work during over-time hours, over and above the regular working days and hours and the Employee undertakes to work these hours in accordance with the Company’s demands and requirements.

 

2.3                     As of the Employment Starting Date, Employee shall not engage in any other business activities, whether or not such business activities are conducted outside of normal business hours and whether or not such activities are pursued for gain or profit unless specifically approved by the Company. The above notwithstanding, it is hereby clarified and agreed that: (i) the Employee may engage is volunteer work; (ii) as of the Effective Date, the Employee is currently engaged and may continue to be engaged with the entities listed on Annex B hereto, and (iii) the Employee may engage in other unpaid activities upon notification to the Company, provided however, that in each case, unless otherwise approved by the Company, such engagements will not disrupt or interfere with Employee’s performance of the duties and responsibilities hereunder, shall not be conducted during the time Employee is obligated to devote for the performance of his/her duties and responsibilities according to this Agreement and/or compete with the Company’s and/or any of its subsidiaries’ and/or any of its affiliates’ business.

 

2.4                     Employee’s position within the Company is (i) a high senior position, (ii) requires a special measure of personal trust and loyalty and (iii) is of conditions and circumstances of which it is impossible for the Company to control Employee’s working hours and hours of rest. Accordingly, the Law of Working Hours and Rest, 5711-1951 shall not apply to the employment of the Employee.

 

3.                            Term and Termination

 

3.1                     This Agreement shall be effective as of the Employment Starting Date, and shall continue until terminated in accordance with the provisions of Section 3.2 or 3.3 hereinafter.

 

3.2                     The Company and the Employee may terminate this Agreement at any time by giving the other party a prior written notice of termination, of a period detailed in Annex A.

 

3.3                     The Company may waive in writing and in advance Employee’s services in any prior notice period. In the event that the Company notifies Employee of such waiver, the Company shall be entitled to pay Employee the Monthly Salary (as defined below) otherwise payable to Employee during such prior notice period in one lump-sum and by doing so bring the employer-employee relations between the parties to end upon such payment.

 

3.4                     Notwithstanding the above, the Company shall have the right to immediately terminate this Agreement for a Cause, as determined by the Company. A “Cause” shall mean either (i) circumstances entitling the Company under any applicable law to terminate the employment of the Employee without payment of severance pay; (ii) any material breach by the Employee of this Agreement, any breach of the NDA or any breach of the Employee’s fiduciary duties; (iii) conviction of the Employee of any felony involving moral turpitude and/or (iv) a willful failure to perform Employee’s responsibilities or duties which failure has a significant adverse effect on the Company in cases (ii) and (iv) above, but in each case only if the Employee did not cure such breach within seven (7) days of written notification of the same by the Company. Subject to section 5.1 (iv), in the event of termination for

 

 

Cause, Employee’s entitlement to severance pay will be subject to Sections 16 and 17 of the Severance Pay Law 5723-1963 (the “Severance Law”) and/or any other applicable law.

 

4.                            Salary

 

During the term of this Agreement, the Company shall pay Employee a monthly gross salary in a total amount detailed in Annex A (the “Monthly Salary”).

 

5.                            Additional Benefits

 

5.1                     Pension Insurance. As of the Employment Starting Date, the Company shall insure the Employee under an accepted “Managers Insurance Plan” (the “Managers Insurance”) and/or a comprehensive pension plan (the “Pension Plan”). The Managers Insurance and/or Pension Plan shall be provided through an agency/agent selected by the Employee, by an insurance company and/or a pension fund, to be selected by the Employee and approved by the Company. For the avoidance of doubt, the Company’s contributions may exceed the maximum exemption from income tax allowed by any applicable law and regulations.

 

(i)                         In the case of a Pension Plan, the percentages detailed in Annex A shall be contributed.

 

(ii)                      In the case of a Managers Insurance, the percentages detailed in Annex A shall be contributed. The Company shall make additional payments, as detailed in Annex A, on account of insurance for loss of earning capacity.

 

(iii)                   The Employee hereby instructs the Company to transfer to such Managers Insurance and/or Pension Plan the amount of Employee’s and the Company’s contribution from the Monthly Salary, as detailed in Annex A.

 

(iv)                  The Company and the Employee agree and acknowledge that the Company’s contribution towards the Managers Insurance or Pension Plan as set forth in this Section 5.1, are in lieu of severance payments to which the Employee (or his beneficiaries) is otherwise entitled to with respect to the Monthly Salary upon which such contributions were made and for the period in which they were made, pursuant to Section 14 of the Severance Law. The parties hereby adopt the General Approval of the Minister of Labor and Welfare, which is attached hereto as Annex C. The Company hereby forfeits any right it may have for reimbursement of sums paid by the Company into the Managers Insurance or Pension Plan, except: (i) in the event that the Employee withdraws such sums from the Managers Insurance or Pension Plan, other than in the event of death, disability or retirement at the age of 60 or more; or (ii) upon the occurrence of any of the events provided for in Sections 16 and 17 of the Severance Law, subject to the terms of the General Approval.

 

5.2                     Additional Benefits. Employee shall receive additional benefits, if any, as detailed in Annex A.

 

5.3                     Annual Vacation. Employee shall be entitled to paid vacation days during each year of employment with the Company as detailed in Annex A, but in any event no less than the number of annual vacation days prescribed by law. Employee shall be obligated to take at least one vacation each year of at least 7 consecutive days (5 working days which shall be counted as vacation days and 2 rest days), as prescribed by law. Any vacation day snot used

 

 

by the Employee during the year will be cancelled on 1st January of the following year and no vacation days shall be redeemed at any time.

 

For the avoidance of doubt, the dates of the Employee’s vacation shall be coordinated with the Company.

 

In addition, to the extent that the Employee requires additional vacation days, the Employee is entitled to request such days from the Supervisor and coordinate such vacation with the Company at its discretion and according to the Company’s policy from time to time. The Company shall be entitled to set uniform dates for vacation for all or part of its employees, with respect to all or any part of the vacation days, as it shall deem fit.

 

5.4                     Cellular Phone; Laptop. If detailed on Annex A, Company shall provide Employee with a laptop (the “Laptop”) and shall bear the costs of maintaining a cellular phone, subject to the Company’s policy and as detailed below (the “Cellular Phone Expenses”) for Employee’s use in the course of performing his/her obligations under this Agreement.

 

Company shall bear all expenses in connection with the use and maintenance of the Laptop, including, internet services, in accordance with the Company’s policies from time to time. The Cellular Phone Expenses as well as the maintenance of the Cellular Phone shall be subject to Company’s policy from time to time, as well as its agreement with the cellular company.

 

In order to benefit from the payment of the Cellular Phone Expenses, the Employee shall be required to sign and execute any form which transfers the line of the Cellular Phone to the business plan of the Company such that the Company shall pay the Cellular Phone Expenses directly to the cellular Company, the identity of the cellular company as well as the plan so chosen for the Employee shall be determined by the Company at its sole discretion. To the extent that the Employee will request to upgrade the plan provided by the Company, the Company may require that the Employee pays the amount which exceeds the Cellular Phone Expenses and the Employee hereby irrevocably authorizes Company to deduct and set off from his Monthly Salary such excess amount. The Employee shall sign the necessary documents required to transfer the line back to Employee’s ownership no later than his/her last day of work with the Company and the Company shall be permitted to disconnect the line immediately thereafter.

 

The Employee shall bear (and hereby irrevocably authorizes Company to deduct and set off from his Monthly Salary) all tax obligations related to the use of the Laptop and the Cellular Phone Expenses, if any. The Employee shall return the Laptop to the Company no later than his/her last day of work with the Company. The Employee shall have no rights of ownership in Laptop, nor any rights to any lien or charge with respect thereto.

 

The use of the Laptop and payment of Cellular Phone Expenses shall not be considered in any case whatsoever as part of the Monthly Salary and Employee will not receive any social benefits on the imputed income related to the grant of the Laptop hereunder or the payment of the Cellular Phone Expenses.

 

5.5                     Sick Leave & Recreation pay. The Employee shall be entitled to sick leave (commencing the first day of sickness), and to recreation pay (“dmei havra’ah”) according to any applicable law.

 

 

5.6                     Car

 

In the event the Employee is provided with a car (the “Car”), the Car, if provided to Employee, shall be for work related purposes only, in accordance with the Company’s vehicle policy and subject to the provisions of Annex A hereto and the Car Use Appendix attached hereto as Annex D. It is hereby clarified that the Car shall come in lieu of any payment in respect of travel expenses required by law. The use of the Car shall not be considered in any case whatsoever as part of the Monthly Salary and Employee will not be entitled to receive any social benefits on the imputed income related to the grant of the Car hereunder, and shall bear all taxes and other compulsory payments associated with such imputed income.

 

6.                            Tax Withholding

 

For avoidance of doubt, all payments and benefits under this Agreement are gross amounts. Any tax consequences arising from the grant or exercise of any option or right or from any payment made to Employee under this Agreement or any other event or act, whether on Employee’s part or the Company’s part, shall be borne solely by Employee (other than taxes which are imposed by law on the Company). The Company shall withhold the applicable taxes as required under any applicable law from any Monthly Salary and/or from all other payments and/or benefits granted to Employee under this Agreement.

 

7.                            Proprietary Information & Non Disclosure

 

The provisions of the Proprietary Information, Assignment of Inventions, Non Disclosure and Non Compete Agreement attached hereto as Annex E (the “NDA”) are hereby incorporated by reference. Employee hereby acknowledges and agrees that this Agreement shall not come into force, unless the NDA is executed. The provisions of the NDA shall survive the rescission or termination, for any reason, of this Agreement.

 

8.                            Representations

 

8.1                     Employee represents and warrants to the Company that the execution and delivery of this Agreement and the fulfillment of the terms hereof (i) will not constitute a default under or conflict with any agreement or other instrument to which he is or was a party or by which he is bound, and (ii) does not require the consent of any person or entity.

 

8.2                     The Employee represents that the Employee has the requisite skills and knowledge to perform his/her duties, responsibilities and obligations under this Agreement.

 

8.3                     Employee represents and warrants that the Employee will use the Company’s assets and equipment (including the Laptop, Cellular Phone, email account assigned to it by the Company, and/or documentation) (collectively “Company’s Equipment”) primarily for the purpose of his/her employment.

 

8.4                     The Employee acknowledges and agrees as follows: (i) upon reasonable suspicion of a breach of the provisions of this Agreement or applicable law, the Company shall have the right to conduct inspections on any and all the Company’s computers, including inspections of electronic mail transmissions in the email account assigned to him/her by the Company, internet usage and inspections of their content, all subject to applicable law. For the avoidance of any doubt, it is hereby clarified that all findings of any such examinations shall

 

 

be the Company’s sole property; and (ii) in any and all times the Employee will transfer to the Company the log-on passwords to the computer/Laptop provided by the Company and the Company assigned email account.

 

9.                            Notice; Addresses

 

9.1                     The addresses of the parties for purposes of this Agreement shall be the addresses first written above, or any other address which shall be provided by due notice.

 

9.2                     All notices in connection with this Agreement shall be sent by registered mail or delivered by hand to the addresses set forth above, and shall be deemed to have been delivered to the other party at the earlier of the following two dates: if sent by registered mail, as aforesaid, 3 (three) business days from the date of mailing; if delivered by hand, upon actual delivery or proof of delivery at the address of the addressee (in the event of a refusal to accept it).

 

Delivery by email or other electronic communication shall be sufficient and be deemed to have occurred upon electronic confirmation of receipt.

 

10.                     Miscellaneous

 

10.1              The preamble to this Agreement constitutes an integral part hereof.

 

10.2              Headings are included for reference purposes only and are not to be used in interpreting this Agreement.

 

10.3              This Agreement is a personal employment agreement and therefore no collective bargaining agreements whatsoever shall apply with respect to the relationship between the parties hereto.

 

10.4              No failure, delay of forbearance of either party in exercising any power or right hereunder shall in any way restrict or diminish such party’s rights and powers under this Agreement, or operate as a waiver of any breach or nonperformance by either party of any terms or conditions hereof.

 

10.5              Any determination of the invalidity or unenforceability of any provision of the Agreement shall not affect the remaining provisions hereof unless the business purpose of this Agreement is substantially frustrated thereby.

 

10.6              This Agreement is personal and non-assignable by Employee. It shall inure to the benefit of any corporation or other entity with which the Company shall merge or consolidate or to which the Company shall lease or sell all or substantially all of its assets, and may be assigned by the Company to any affiliate of the Company or to any corporation or entity with which such affiliate shall merge or consolidate or which shall lease or acquire all or substantially all of the assets of such affiliate. Any assignee must assume all the obligations of the Company hereunder, but such assignment and assumption shall not serve as a release of the Company.

 

10.7              This Agreement and any annexes thereto constitute an “employee notice” as required under the Employee’s Notice (Terms of Employment) Law - 2002.

 

 

10.8              This Agreement, including any annexes thereto, constitutes the entire understanding and agreement between the parties hereto, supersedes any and all prior discussions, agreements and correspondence with regard to the subject matter hereof, and may not be amended, modified or supplemented in any respect, except by a subsequent writing executed by both parties hereto.

 

10.9              It is hereby agreed between the parties that this Agreement shall be governed by and construed according to the laws of the State of Israel. Any dispute arising under or relating to this Agreement or any transactions contemplated herein shall be resolved by the courts of Tel Aviv, and each of the parties hereby submits irrevocably to the exclusive jurisdiction of such venue.

 

{Remainder of Page Intentionally Left Blank. Signature Page to Follow}

 

 

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

 

	
LEMONADE LTD.
    	
EMPLOYEE
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Daniel Schreiber
    	
 
    	
/s/ Shai Wininger
    
	
By:
    	
Daniel Schreiber
    	
 
    	
Shai Wininger
    
	
Title:
    	
CEO
    	
 
    	
 
    

 

 

ANNEX A

 

	
1.
    	
 
    	
Employee Personal Details:
    	
 
    	
Full Name: Shai Wininger
   Israeli I.D. Number: [       ]
   Address: [        ]
   Phone No.: [        ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Position in the Company:
    	
 
    	
CTO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Supervisor / direct manager:
    	
 
    	
Board of Directors of the Company
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Employment Starting Date:
    	
 
    	
July 1, 2015
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Period of Prior Written Notice:
    	
 
    	
90 days
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Monthly Salary:
    	
 
    	
NIS 55,000 to be paid no later than the 9th day of   each month.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Severance:
    	
 
    	
Upon termination of Employment, unless Employee is   terminated for Cause, the Company shall pay the Employee a gross amount equal   to nine (9) Monthly Salaries and the value of all benefits in respect of   nine months of employment and any options or other securities held by the   Employee which will be vesting at the time of termination shall accelerate by   nine (9) months.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Contributions to Managers Insurance (percentages out   of the Monthly Salary):
    	
 
    	
i.                  Company shall   contribute 13.33%, of which: 8.33% shall constitute payment towards severance   pay component and 5% shall constitute payment towards providence component).

 

ii.               5% shall be   contributed by the Employee and deducted from Employee’s Monthly Salary.

 

iii.            In addition, the   Company shall make provision for the loss of earning capacity component at   the lower of: 2.5% of the Monthly Salary or such amount as shall be required   to ensure 75% of the Monthly Salary.
    

 

 

	
9.
    	
 
    	
Contributions to Education Fund (percentages out of   the Monthly Salary):
    	
 
    	
Following the completion of three consecutive month   period commencing on the Employment Starting Date and provided that Employee   is still employed by the Company, Company shall contribute an amount equal to   7.5% of the Employee’s Monthly Salary, and the Employee shall contribute an   amount equal to 2.5% of the Monthly Salary. The Employee instructs the   Company to transfer to such Education Fund the amount of Employee’s   contribution from each Monthly Salary.

 

In the event of termination of Employee’s employment   under this Agreement for any reason other than a termination for Cause (as   defined in the Agreement) Employee shall be entitled to all sums accumulated   in the Education Fund. In the event of termination for Cause (as defined in   the Agreement).

 

Employee shall not be entitled to any of Company’s   contributions to the Education Fund made during the Agreement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Annual Vacation Days:
    	
 
    	
35 days
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Cellular Phone Expenses:
    	
 
    	
Cellular Phone- Company shall pay the Cellular Phone   Expenses directly to the cellular phone carrier. Other terms are as above.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Car and Travel:
    	
 
    	
Group 5 car to be chosen by the Employee. Unlimited   mileage. All expenses of the car (including tolls roads & tunnels,   parking costs) shall be covered by the Company. International travel pursuant   to the Company’s policy which shall include business class flights for all   international travel of more than 5 hours duration. At Employee’s option, the   Employee may waive the right to a car and receive the gross lease costs as   part of the Monthly Salary (fuel and expenses above will continue to be   covered by the Company).
    

 

 

ANNEX B

 

 

ANNEX C
 GENERAL APPROVAL REGARDING PAYMENTS BY EMPLOYERS TO A PENSION
 FUND AND INSURANCE FUND IN LIEU OF SEVERANCE PAY UNDER THE
 SEVERANCE PAY LAW, 5723-1963

 

[                    ]

 

 

ANNEX E

 

CAR (ATTACHED)

 

 

ANNEX E

 

Proprietary Information, Assignment of Inventions, Non-Disclosure and Non-Compete
 Agreement

 

 

AMENDMENT TO EMPLOYMENT AGREEMENT
  Executed on this 29 day of July 2015

 

THIS AMENDMENT (the “Amendment”) to the Employment Agreement dated July 2015 (the “Employment Agreement” and the “Agreement Date” respectively) is entered into this 29 day of July 2015 (the “Effective Date”), by and between Lemonade Ltd. (the “Company”) and Shai Wininger (the “Employee”).

 

WHEREAS, the Company and the Employee have entered into the Employment Agreement; and

 

WHEREAS, the Employment Agreement includes certain provisions which the parties mutually wish to amend as set forth herein.

 

NOW, THEREFORE, the parties hereto agree to amend the Employment Agreement as follows:

 

1.                                      Annex A.

 

Annex A to the Employment Agreement is hereby deleted and replaced in its entirety by Annex A hereto.

 

2.                                      Annex B.

 

Annex A to the Employment Agreement is hereby deleted and replaced in its entirety by Annex A hereto.

 

3.                                      Survival of Provisions.

 

Except as otherwise amended and modified hereby, which amendments shall have effect on the entire Employment Agreement, the provisions of the Employment Agreement shall remain in full force and effect.

 

4.                                      General.

 

4.1                               Employee hereby acknowledges that he is aware that this Amendment shall take effect as of the Effective Date.

 

4.2                               This Amendment shall be deemed for all intents and purposes as an integral part of the Employment Agreement. Employee acknowledges that he has read and fully understood all the provisions of this Amendment and that the signing of this Amendment was made at Employee’s own free will.

 

[signature page follows]

 

1

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Effective Date.

 

	
/s/ Daniel Schreiber
    	
 
    	
/s/ Shai Wininger
    
	
LEMONADE LTD.
    	
SHAI WININGER
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    

 

2

 

ANNEX A

 

	
1.
    	
 
    	
Employee Personal Details:
    	
 
    	
Full Name: Shai Wininger
   Israeli I.D. Number: [       ]
   Address: [       ]
   Phone No.: [       ]
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.
    	
 
    	
Position in the Company:
    	
 
    	
CTO
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.
    	
 
    	
Supervisor / direct manager:
    	
 
    	
Board of Directors of the Company
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4.
    	
 
    	
Employment Starting Date:
    	
 
    	
July 1, 2015
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5.
    	
 
    	
Period of Prior Written Notice:
    	
 
    	
90 days
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
6.
    	
 
    	
Monthly Salary:
    	
 
    	
NIS 55,000 to be paid no later than the 9th day of   each month.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
7.
    	
 
    	
Severance:
    	
 
    	
Upon termination of Employment, unless Employee is   terminated for Cause, the Company shall pay the Employee a gross amount equal   to three (3) Monthly Salaries and the value of all benefits in respect   of nine months of employment and any options or other securities held by the   Employee which will be vesting at the time of termination shall accelerate by   three (3) months.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
8.
    	
 
    	
Contributions to Managers Insurance (percentages out   of the Monthly Salary):
    	
 
    	
i.                  Company shall   contribute 13.33%, of which: 8.33% shall constitute payment towards severance   pay component and 5% shall constitute payment towards providence component).

 

ii.               5% shall be   contributed by the Employee and deducted from Employee’s Monthly Salary.

 

iii.            In addition, the   Company shall make provision for the loss of earning capacity component at   the lower of: 2.5% of the Monthly Salary or such amount as shall be required   to ensure 75% of the Monthly Salary.
    

 

3

 

	
9.
    	
 
    	
Contributions to Education Fund (percentages out of   the Monthly Salary):
    	
 
    	
Following the completion of three consecutive month   period commencing on the Employment Starting Date and provided that Employee   is still employed by the Company, Company shall contribute an amount equal to   7.5% of the Employee’s Monthly Salary, and the Employee shall contribute an   amount equal to 2.5% of the Monthly Salary. The Employee instructs the   Company to transfer to such Education Fund the amount of Employee’s   contribution from each Monthly Salary.

 

In the event of termination of Employee’s employment   under this Agreement for any reason other than a termination for Cause (as   defined in the Agreement) Employee shall be entitled to all sums accumulated   in the Education Fund. In the event of termination for Cause (as defined in   the Agreement).

 

Employee shall not be entitled to any of Company’s   contributions to the Education Fund made during the Agreement.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Annual Vacation Days:
    	
 
    	
As determined by management in consultation with the   board but no less than the minimum required by law.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
11.
    	
 
    	
Cellular Phone Expenses:
    	
 
    	
Cellular Phone- Company shall pay the Cellular Phone   Expenses directly to the cellular phone carrier. Other terms are as above.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
12.
    	
 
    	
Car and Travel:
    	
 
    	
Group 5 car to be chosen by the Employee. Unlimited   mileage. All expenses of the car (including tolls roads & tunnels,   parking costs) shall be covered by the Company. International travel pursuant   to the Company’s policy which shall include business class flights for all   international travel of more than 5 hours duration. At Employee’s option, the   Employee may waive the right to a car and receive the gross lease costs as part   of the Monthly Salary (fuel and expenses above will continue to be covered by   the Company).
    

 

4

 

ANNEX B

 

Member of the Board of Directors - Fiverr

Mentor in the Zell Program and in The Junction

Founder team mentor - Bizzabo (paid)

Occasional talks and lectures (both local and international)

 

5Exhibit 10.5

 

LEMONADE, INC.

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of the 3rd day of October 2016, effective as of September 26, 2016, between Lemonade, Inc., a Delaware corporation (the “Company”) and John Peters, residing at [          ] (the “Employee”).

 

WHEREAS, the Company desires to employ Employee as Chief Underwriting Officer of the Company, to engage in such activities and render such services under the terms and conditions hereof and has authorized and approved the execution of this Agreement; and

 

WHEREAS, Employee desires to be employed by the Company under the terms and conditions hereinafter provided;

 

NOW, THEREFORE, in consideration of the mutual covenants and undertakings herein contained, it is covenanted and agreed by and between the parties as follows:

 

1.                   Services.  The Company hereby employs Employee to render services as Chief Underwriting Officer of the Company, assuming and discharging such responsibilities as are commensurate with Employee’s position and as are reasonably directed or requested by his/her direct Supervisor (as defined below) and the Chief Executive Officer (“CEO”) of the Company and as are detailed in Exhibit A (the “Services”).  The Employee acknowledges and agrees that the performance of the Services may require domestic and international travel.  The Employee shall be subject to and shall perform the Services as directed by the CEO or whoever is appointed by him for this purpose (the “Direct Supervisor”).  The parties hereto warrant and confirm that the Services shall commence on September 26, 2016 (the “Employment Starting Date”).  The provisions of this Agreement shall apply to the parties as of the Employment Starting Date.  Employee shall use his/her best efforts, skills and abilities in the performance of the Services, shall perform the Services faithfully, and shall devote Employee’s full business time and effort to the performance of the Services, other than as set forth in Exhibit B.  This Section 1, however, shall not be construed to prevent Employee from making passive outside investments so long as such investments do not require time of Employee during regular business hours or otherwise interfere with the performance of Employee’s duties and obligations hereunder.

 

2.                   Incorporation of Company Policies.  Every term of the Company’s Intellectual Property, Confidentiality and Non-Competition Policy is specifically incorporated into this Agreement, a copy of which is attached as Exhibit C.  In addition, the Company’s Employee Handbook and such other policies as the Company may adopt from time to time of which Employee is advised shall be a part of and incorporated into this Agreement.

 

3.                   Compensation.  Employee shall be entitled to compensation under the following terms for the duration of his/her employment with the Company:

 

3.1                               Base Salary.  Employee shall be entitled to compensation of $225,000 per annum (the “Base Salary).  The Company will review Employee’s performance and compensation at least annually, and it may, at the discretion of the Board from time to time, increase

 

 

the compensation to be paid to Employee or provide additional compensation to Employee, whether permanently or for a limited period of time, in order to recognize and fairly compensate Employee for the value of his/her services to the Company.

 

3.2                               Benefits.  Employee shall be entitled to participate in any and all employee welfare and health benefit plans including, but not limited to, life insurance, health and medical, dental, and disability plans, and other employee benefit plans, including but not limited to qualified pension plans and 401(k) plans, which may be established by the Company from time to time for the benefit of other Company employees.  Employee shall be required to comply with the conditions attendant to coverage by such plans and shall comply with and be entitled to benefits only in accordance with the terms and conditions of such plans as they may be amended from time to time.  Nothing herein shall be construed as requiring Company to establish or continue any particular benefit plan in discharge of its obligations under this Agreement.

 

3.3                               Personal Time Off.  In addition to holidays observed by Company, Employee shall be entitled to a total of 20 days of paid Personal Time Off which includes vacation, personal, and sick days (“Personal Time Off”) during which all compensation, earned benefits and other rights that the Employee is entitled to hereunder shall be provided in full.  The Employee may take such Personal Time Off in the Employee’s discretion, and at such time or times as are not inconsistent with the reasonable business needs of the Company.  Nothing herein shall be construed to create entitlement on behalf of the Employee for paid Personal Time Off as an earned or accrued benefit or as earned or accrued compensation of any kind.

 

3.4                               Deductions from Compensation and Benefits.  The Company may withhold from any compensation or benefits payable to Employee all federal, state, local, and other taxes and other amounts as permitted or required by applicable law, rule or regulation.

 

3.5                               Business Expenses.  It is hereby clarified that unless indicated specifically otherwise in this Agreement, the Base Salary includes reimbursement for all daily travel expenses, costs, food costs, out-of-pocket and/or other expenses relating to the performance of the Services, and that the Employee shall not be entitled to any additional payment in connection with the Services.  Notwithstanding the above, the Employee shall be entitled to reimbursement of (i) extraordinary expenses necessary for the performance of the Service that such expenses have been approved in advance and in writing by and (ii) reasonable costs and expenses relating to Employee’s travel home and the Company’s offices in New York, New York,

 

3.6                               Indemnification.  To the fullest extent permitted by law, the Company shall, both during and after Employee’s Termination Date, indemnify and defend Employee (including the advancement of expenses) for any judgments, fines, amounts paid in settlement and reasonable expenses, including attorneys’ fees, incurred by Employee in connection with the defense of any lawsuit or other claim to which he is made a party by reason of being (or having been) an officer, director or employee of the Company or any of its subsidiaries or affiliates.  In addition, Employee shall be covered, both during and up to 24 months after the Termination Date, by director and

 

 

officer liability insurance to the maximum extent that such insurance covers any officer or director (or former officer or director) of the Company.

 

4.                   Termination.  The Company or the Employee may terminate this Agreement at any time for any reason or no reason, subject to the following provisions:

 

4.1                               Voluntary Termination.  Employee may voluntarily terminate his/her employment with the Company by providing written notice.  In such event, the Company shall be released from any and all further obligations under this Agreement, except that the Company shall be obligated to pay Employee the compensation, benefits and reimbursable expenses owing to Employee through the date of such termination, provided that if Employee terminates for Good Reason, the Company also shall pay the Severance Benefits

 

4.2                               Termination without Cause.  The Company may voluntarily terminate Employee’s employment without Cause by providing written notice to Employee.  In such event, the Company shall be released from any and all further obligations under this Agreement, except that the Company shall be obligated to pay Employee the compensation, benefits and reimbursable expenses owing to Employee through the date of such termination and the Severance Benefits.

 

4.3                               At Will Employment.  All employment with the Company is, and remains, at will, which means that Employee is not guaranteed any particular length of employment, and that either Employee or the Company can end the relationship at any time, with or without cause and with or without notice.  No one can alter the at will nature of the employment relationship except by an express statement in writing.

 

4.4                               Termination for Cause.  Employee may be terminated at any time for “Cause” (defined below) by written notice to Employee setting forth in reasonable detail the nature of the Cause, and, in such event, the Company shall from any and all further obligations under this Agreement, except that the Company shall be obligated to pay Employee, or Employee’s heir and assigns, his/her Base Salary and benefits, and reimbursable expenses owing to Employee through the date of such termination.

 

4.5                               Termination due to Death or Disability.  This Agreement shall terminate upon the death of Employee, and Employee may be terminated by reason of “Disability” and, in either such event, the Company shall be released from any and all further obligations under this Agreement, except that the Company shall be obligated to pay Employee, or Employee’s heirs or estate, his/her Base Salary, benefits and reimbursable expenses owing to Employee through the date of such termination.

 

4.6                               Cause.  “Cause” for Termination shall include the following conduct of the Employee:

 

4.6.1                     Breach of any material provision of this Employment Agreement by the Employee, provided that the Company must notify Employee in writing within 30 days of the date such purported breach occurs, and Employee shall have 30 days from Employee’s receipt of notice to cure the purported violation, with the Company’s reasonable cooperation during such period; further provided

 

 

that only two (2) such notices shall be required in any twelve (12) month period;

 

4.6.2                     Material refusal to perform the duties assigned to the Employee under or pursuant to this Employment Agreement, which refusal has not been cured by the Employee after having been given ten (10) calendar days’ written notice of such breach provided, however, that only two (2) such notices shall be required in any twelve (12) month period;

 

4.6.3                     Misappropriating material funds or material property of the Company so as to cause damage to the Company.

 

4.6.4                     Violating any written policy of the Company set forth in the Company’s employee handbook, provided that the Company must notify Employee in writing within 30 days of the date such purported violation occurs, and Employee shall have 30 days from Employee’s receipt of notice to cure the purported violation, with the Company’s reasonable cooperation during such period.

 

4.6.5                     A material breach of the Employee’s duty of loyalty to the Company;

 

4.6.6                     Acts of material dishonesty by the Employee that cause the Company to be in violation of governmental regulations that subject the Company either to material sanctions by governmental authority or to material civil liability to its employees or third parties; or

 

4.6.7                     Disclosure or use of confidential information of the Company, other than as specifically authorized and required in the performance of Employee’s duties.

 

4.7                               Disability. “Disability” for termination pursuant to this Section 4 shall be defined as the inability of Employee to perform any of his/her essential duties hereunder for a period of one-hundred eighty (180) consecutive calendar days by reason of disability as a result of illness, accident or other physical or mental incapacity or disability.  If there should be a dispute between the Company and Employee as to whether or not Employee has suffered a Disability, then the question shall be settled by the opinion of an impartial reputable physician or psychiatrist agreed on by the parties or their representatives, or if the parties cannot agree within ten (10) days after a request for designation of such party, then a physician or psychiatrist designated by any provider of disability insurance to the Company or, if none, each party shall select a physician or psychiatrist of their choice, and said physician/psychiatrists shall select a physician/psychiatrist who shall server as the impartial party to resolve the determination of disability.  The certification of such physician or psychiatrist as to the questioned dispute shall be final and binding on the parties hereto.

 

4.8                               “Good Reason” means that the Employee has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events:

 

4.8.1                     a material reduction of Employee’s then effective base salary;

 

 

4.8.2                     a material reduction of Employee’s aggregate Company-provided benefits below those in effect immediately prior to such change, if such reduction is not applied as a part of an overall reduction in benefits in which Employee is treated proportionally with other employees, given his position, length of service, income and other relevant factors customary for companies such as the Company in the medical device industry at the time unless Employee accepts such reduction in writing;

 

4.8.3                     a material reduction by the Company in Employee’s duties or responsibilities;

 

4.8.4                     a failure or refusal of any acquiring or surviving corporation or other entity or person to assume the Company’s obligations under this Agreement

 

4.8.5                     any material breach by the Company of any of the material provisions of this Agreement.

 

(each a “Good Reason Condition”).

 

4.9                               “Good Reason Process” means that (i) Employee notifies the Company in writing of the occurrence of the Good Reason Condition within 60 days of the occurrence of such condition; (ii) Employee cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice (the “Cure Period”), to remedy the Good Reason Condition; (iii) notwithstanding such efforts, the Good Reason condition continues to exist; and (iv) Employee terminates employment within 60 days after the end of the Cure Period

 

4.10                        “Severance Benefits” shall mean (i) continuation of Employee’s base salary (as of the Termination Date or as of the day before any reduction in base salary leading to Employee’s termination for Good Reason, whichever is higher), payable in equal installments over the six months following the Termination Date (the Salary Continuation, and such period, the “Salary Continuation Period”), beginning on the Company’s first payroll date after the Termination Date; and (ii) if on the Termination Date Employee is covered by a Company-provided group health plan, and subject to Employee’s copayment of premium amounts at the active employees’ rate, the Company shall pay the remainder of the premiums for Employee’s participation in the Company’s group health plan pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”); provided that the Company’s payment obligation shall cease upon the earlier of the end of the Salary Continuation Period or the expiration of Employee’s rights under COBRA ((i) and (ii), the “Severance Benefits”).

 

4.11                        “Termination Date” means the last day of Employee’s employment, regardless of the reason for the termination.

 

4.12                        Payments and Other Matters. Following Employee’s termination for any reason, whether by Company or Employee, within ten (10) business days following the date of submission, the Company shall pay all claims for reimbursement of business

 

 

expenses that are submitted within thirty (30) days of termination and within thirty (30) days following the date of termination.

 

4.13                        No Mitigation.  In no event shall Employee be obligated to seek other employment or take any other action by way of mitigation of any amounts payable to Employee pursuant to Section 4 and such amounts shall not be reduced whether or not Employee obtains other employment or other engagements (including self-employment and independent contractor engagements).

 

4.14                        Survival.  In addition to any provisions of this Agreement that by their terms or nature are intended to survive termination of this Agreement, Section 2 (and Exhibit C hereto), 3.3, and 5.2 through 5.10, shall survive the termination of Employee’s employment, and the parties shall remain bound thereby.

 

5.                   General Provisions.

 

5.1                               [Reserved]

 

5.2                               Injunctive Relief.  Employee agrees that in the event of any violation of this Agreement by Employee, the Company may be entitled, in addition to any other rights or remedies which it might have, to maintain an action for damages and permanent injunctive relief, and in addition the Company shall be entitled to preliminary injunctive relief, it being agreed and understood that the substantive and irreparable damages which a party might sustain upon any such violation could be impossible to ascertain in advance.  Employee further agrees that nothing in this Agreement shall be construed as a limitation upon the remedies the Company might have for any wrongs of Employee.  Employee acknowledges that any violation of his/her obligations described herein may result in disciplinary action, including dismissal from the Company, as well as and any other appropriate relief for the Company including money damages and equitable relief, together with associated attorney fees.

 

5.3                               Governing Law and Jurisdiction.  This Agreement shall be governed by and construed and enforced in accordance with the local laws of the State of New York.  Each of the parties hereto irrevocably consents and submits to the jurisdiction of the Superior Court of the State of New York and the United States District Court for the District of New York in connection with any suit, action, or other proceeding concerning this Agreement.  Employee waives and agrees not to assert any defense that the court lacks jurisdiction, venue is improper, inconvenient forum or otherwise.  Employee agrees to accept service of process by certified mail at Employee’s last known address, unless Employee has previously provided an alternate address at which he agrees to accept service, in writing to the Company.

 

5.4                               Severability.  If any of the provisions of this Agreement shall be unlawful, void, or for any reason, unenforceable, such provision shall be deemed severable from, and shall in no way affect the validity or enforceability of, the remaining portions of this Agreement.

 

 

5.5                               Amendment and Waiver.  This Agreement may be amended, modified, superseded, canceled, renewed or extended and the terms or covenants hereof may be waived, only by a written instrument executed by both of the parties hereto, or in the case of a waiver, by the party waiving compliance.  No superseding instrument, amendment, modification, cancellation, renewal or extension hereof shall require the consent or approval of any person other than the parties hereto.  The failure of either party at any time or times to require performance of any provision hereof shall in no matter affect the right at a later time to enforce the same.  No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement.

 

5.6                               Notice.  All notices, requests, demands, and other communications hereunder must be in writing and shall be deemed to have been duly given if delivered by hand or mailed within the continental United States by first class, registered mail, return receipt requested, postage and registry fees prepaid, to the applicable party at the address set forth on the first page of this Agreement or such other address as may be designated, from time to time, by the parties in writing and shall be deemed received on the date delivered if delivered by hand and otherwise on the date received.

 

5.7                               Successors and Assigns.  Neither this Agreement, nor any of Employee’s rights, powers, duties or obligations hereunder, may be assigned by Employee without the prior written consent of Company.  The Company has the right to assign this Agreement to any of its subsidiaries.  In the event of any assignment of this Agreement, all terms and conditions herein will be binding upon and inure to the benefit of the parties hereto and their respective permitted transferees, successors, and assigns.  Successors of the Company shall include, without limitation, any company or companies acquiring, directly or indirectly, all or substantially all of the assets of the Company, whether by merger, consolidation, purchase, lease or otherwise.  Any such successor referred to in this paragraph shall thereafter be deemed “the Company” for the purpose hereof.

 

5.8                               Legal Expenses.  In the event of a dispute arising under this Agreement, the prevailing party shall be entitled to reimbursement of its costs and expenses (including attorney’s fees) from the non-prevailing party.

 

5.9                               Headings.  The descriptive headings of the several paragraphs of this Agreement are inserted for convenience of reference only and shall not constitute a part of this Agreement.

 

5.10                        Section 409A.  It is intended that the compensation and benefits provided under this Agreement shall comply with the provisions of Section 409A of the Internal Revenue Code (“Section 409A”) or qualify for an exemption to Section 409A, and this Agreement shall be construed and interpreted in accordance with such intent.  Any payments that qualify for the “short term deferral” exception or another exception under Section 409A shall be paid under the applicable exception.  Each payment

 

 

provided under this Agreement shall be treated as a separate payment for Section 409A purposes.

 

5.11                        Entire Agreement.  This Agreement, including Exhibit C which shall form a part hereof, contains the entire agreement of the parties concerning the Employee’s employment and all promises, representations, understandings, arrangements and prior agreements on such subject are merged herein and superseded hereby.  The provisions of this Agreement may not be amended, modified, repeated, waived, extended or discharged except by an agreement in writing signed by the parties hereto.

 

 

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year first above written.

 

	
Lemonade, Inc.
    	
Employee
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/ Daniel Schreiber
    	
 
    	
/s/ John Peters
    
	
Name:
    	
Daniel Schreiber
    	
 
    	
Name:
    	
John Peters
    
	
Title:
    	
Chief Executive Officer
    	
 
    	
 
    

 

 

Exhibit A

 

(a)                                 The Services

 

Services to be rendered by the Employee shall include, without limitation, the following:

 

·                                          [                  ]

 

 

Exhibit B

 

List of Other Activities:

 

Employee is engaged in the formation of an insurance agency that will market insurance products to sailing clubs, yacht clubs and other sailing-related affinity groups.  Employee’s role with the agency will be limited to owner, advisor and member of the board.

 

 

Exhibit C

 

Intellectual Property, Confidentiality and Non-Competition Policy

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