Incredimail 2009 Annual Report Download - page 52

Certain Employment Agreements with Directors
We have entered into employment agreements, effective February 3, 2006, with our co-
founder, Chief Executive Officer and Chief
Product Officer Ofer Adler to retain his continuing services. The employment agreement does not provide for a specified term and may be
terminated by either party upon ninety days’ prior notice. Upon termination by us of the employment of the executive other than for “cause” (
as
set forth in the agreement), we are required to continue to pay the terminated executive his salary, benefits and bonus until the end of the 90 day
notice period. However, we will have the option to pay the terminated executive a lump sum equal to all amounts due as of the notice date. As
required by Israeli law, we will also remit severance payment to the terminated executive in an amount equal to one month’
s salary for each year
of employment with us following the first year of employment (and a pro rata portion of such monthly salary for each portion of a year of
employment following the first year of employment). Such amount of severance payment will be remitted to the executive even if he voluntarily
terminates his employment with us. In the event that we terminate the employment of Mr. Ofer Adler for “cause,”
we will not be required to give
prior notice and/or to pay the executive severance payment, except for payment required by Israeli law. In the event that the executive resigns
without giving the required notice period, we may deduct from the money that we owe the executive an amount equal to the wages to which he
would have been entitled had he worked during the notice period.
Ofer Adler has agreed not to compete with us during the term of the agreement and for a period of two years thereafter. The agreement
also contains customary confidentiality and intellectual property assignment provisions.
We also have existing employment agreements with our other executive officers. These agreements do not contain any change of
control provisions and otherwise contain salary, benefit and non-competition provisions that we believe to be customary in our industry.
D. EMPLOYEES
As of December 31, 2009 we had 111 employees, including 110 employees based in Israel and 1 employee based in the US. The
breakdown of our employees by department and fiscal period is as follows:
Some provisions of the collective bargaining agreement between the Histadrut, which is the General Federation of Labor in Israel, and
the Coordination Bureau of Economic Organizations, including the Industrialist’
s Association of Israel, apply to our Israeli employees by virtue
of extension orders of the Israeli Ministry of Industry, Trade and Labor. These provisions concern the length of the workday and the work-
week,
recuperation pay and commuting expenses, compensation for working on the day before and after a holiday and payments to pension funds.
Furthermore, these provisions provide that the wages of most of our employees are adjusted automatically. The amount and frequency of these
adjustments are modified from time to time. Additionally, we are required to insure all of our employees by a comprehensive pension plan or a
senior employees' insurance according to the terms and the rates detailed in the order. In addition, Israeli law determines minimum wages for
workers, minimum paid leave or vacation, sick leave, working hours and days of rest, insurance for work-
related accidents, determination of
severance pay, the duty to give notice of dismissal or resignation and other conditions of employment. In addition, certain laws prohibit or limit
the employer’
s ability to dismiss its employees in special circumstances. We have never experienced a work stoppage, and we believe our
relations with our employees are good.
December 31,
2007
2008
2009
Management and administration
17
16
12
Support and creative
32
21
20
Research and development
68
64
60
Selling and marketing
31
18
19
Total
148
119
111
47