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false 0001533998 0001533998 2025-04-18 2025-04-18 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): April 18, 2025

 

DARIOHEALTH CORP.

(Exact name of registrant as specified in its charter)

 

Delaware   001-37704   45-2973162
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
Identification No.)

 

322 W. 57th St, #33B
New York, New York 10019

(Address of Principal Executive Offices)

 

972- 4-770-6377

(Issuer’s telephone number)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation to the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which 
registered
Common Stock, par value $0.0001 per share   DRIO   The Nasdaq Capital Market LLC

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

 


  

 Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

 

On April 18, 2025, Mr. Zvi Ben-David resigned as Chief Financial Officer, Treasurer and Secretary of DarioHealth Corp. (the “Company”), effective as of May 15, 2025. Mr. Zvi Ben-David’s resignation was for personal reasons and was not due to any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.

 

On April 18, 2025, the Board of Directors of the Company appointed Chen Franco-Yehuda, age 41, to serve as the Company’s Chief Financial Officer, Treasurer and Secretary, effective as of May 15, 2025. Prior to her appointment as Chief Financial Officer, Treasurer and Secretary, Mrs. Franco Yehuda served as Chief Financial Officer, Treasurer and Secretary of Pluri Inc. (Nasdaq, TASE: PLUR) From March 2019 to October 2024, Pluri’s Head of Accounting and Financial reporting since July 2016 and Pluri’s Corporate Controller since May 2013. Before joining Pluri, from October 2008 to April 2013, Mrs. Franco-Yehuda served as a manager of audit groups relating to public and private companies in various industries at PricewaterhouseCoopers (PwC) and also as a lecturer of accounting classes at the Open University of Israel from 2009 to 2014. Mrs. Franco Yehuda is also a board member at Brenmiller Energy Ltd. (Nasdaq: BRNG) and serves as a member of the audit and compensation committee. Mrs. Franco-Yehuda holds a bachelor's degree in economics and accounting with high honors from Haifa University, and is a certified public accountant in Israel.

 

In connection with her appointment, the Company, through its wholly owned subsidiary Labstyle Innovation Ltd., entered into an employment agreement (the “Employment Agreement”) and a standard indemnification agreement with Ms. Franco-Yehuda. Pursuant to the terms of her Employment Agreement, the Company agreed to pay Ms. Franco-Yehuda a monthly salary of NIS 82,000 (approximately $22,245), as well as a target bonus equal to a gross amount of up to six times her base salary, subject to meeting certain milestones as annualy approved by the Compensation Committee and/or the Board of Directors. Ms. Franco-Yehuda’s employment agreement may be terminated by either party at will upon 90 days prior written notice or terminated by us for cause, as defined under the employment agreement. In the event the employment agreement is terminated by us at will, Ms. Franco-Yehuda shall be entitled to receive a minimum of 90 days of severance plus any required severance payment pursuant to applicable Israeli severance law, including an adjustment period where she will continue to receive severance (whereby Ms. Franco will accrue one month of an adjustment period for each year of her employment, commencing as of April 27, 2025, but in no event will the adjustment period exceed six (6) months in the aggregate). In the event the employment agreement is terminated by the Company for cause, Ms. Franco-Yehuda will only be entitled to a severance pay under applicable Israeli severance law. In the event of a change of control of the Company, Ms. Franco-Yehuda will be entitled to a six (6) month adjustment period and a full acceleration of any unvested awards. The Employment Agreement also includes a twelve-month non-competition and non-solicitation provision, certain confidentiality covenants and assignment of any of her company-related inventions to the company. Under the terms of the Employment Agreement, Ms. Franco-Yehuda is entitled to certain expense reimbursements and other standard benefits, including vacation, sick leave, contributions to a manager’s insurance policy and study fund and mobile phone allowances.

 

In addition, the Company agreed to issue Ms. Franco-Yehuda 500,000 restricted shares of the Company’s common stock, pursuant to the Company’s Amended and Restated 2020 Equity Incentive Plan, as amended. The restricted shares vest over three years, with one third of such shares vesting on April 27, 2026, and the remaining shares vesting in equal quarterly amounts.

 

Except as otherwise set forth herein, there is no arrangement or understanding between Ms. Franco-Yehuda any other person pursuant to which she was appointed as Chief Financial Officer Treasurer and Secretary and there are no transactions in which Ms. Franco-Yehuda has an interest requiring disclosure under Item 404(a) of Regulation S-K.

 

Separation Agreement

 

On April 18, 2025, the Company, through its wholly owned subsidiary Labstyle Innovation Ltd., executed a Termination of Employment and Separation Agreement (the “Agreement”) with Zvi Ben David, the Company’s former Chief Financial Officer, pursuant to which Mr. Ben David’s position as Chief Financial Officer, Secretary and Treasurer, will terminate effective May 15, 2025.

 

 


  

Pursuant to the terms of the Agreement, the Company agreed to retain Mr. Ben-David as a member of its advisory board. The Company also agreed to pay Mr. Ben-David, in lieu of his notice period and accrued vacation, a reduced monthly payment of 52,500 NIS (approximately $14,266) for the period from July 1, 2025 through December 31, 2025, and 47,775 NIS (approximately $12,982) for the period January 1, 2026 through October 31, 2027.

 

The foregoing description of the terms of the Employment Agreement and the Agreement are not intended to be complete and are qualified in their entirety by reference to the Employment Agreement and the Agreement, copies of which are attached hereto as Exhibit 10.1 and 10.2, respectively, to this Current Report on Form 8-K.

 

Item 9.01 Financial Statements and Exhibits.  

 

(d) Exhibits.

 

Exhibit
Number
  Description
10.1^   Personal Employment Agreement, dated April 18, 2025, between DarioHealth Corp. and Chen Franco-Yehuda
10.2^   Termination of Employment and Separation Agreement, dated April 18, 2025, between DarioHealth Corp. and Zvi Ben-David
104   Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

 

^ Certain identified information in the exhibit has been excluded from the exhibit because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed. The registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request.

  

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: April 21, 2025 DARIOHEALTH CORP.
   
   
  By: /s/ Zvi Ben David
  Name: Zvi Ben-David
  Title: Chief Financial Officer, Treasurer and Secretary

  

 

 

EX-10.1 2 tm2512724d1_ex10-1.htm EXHIBIT 10.1

 

Exhibit 10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT DARIOHEALTH CORP. TREATS AS PRIVATE OR CONFIDENTIAL. OMISSIONS ARE DENOTED IN BRACKETS WITH ASTERISKS THROUGHOUT THIS EXHIBIT.

 

PERSONAL EMPLOYMENT AGREEMENT

 

THIS PERSONAL EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into this April 17, 2025 by and between LabStyle Innovation Ltd., a company incorporated under the laws of the State of Israel, with its offices at 8 HaTochen St., Cesarea Industrial Park, 3088900, Israel (the "Company"), and Ms. Chen Franco Yehuda (Israeli I.D. [**]) residing at [**] (the "Employee").

 

WHEREAS, the Company wishes to employ the Employee, and the Employee wishes to be employed by the Company, as of the Commencement Date (as such term is defined hereunder); and

 

WHEREAS, the parties hereto desire to state the terms and conditions of the Employee's employment by the Company, as set forth below.

 

NOW, THEREFORE, in consideration of the mutual premises, covenants and other agreements contained herein, the parties hereby agree as follows:

 

General

 

1.       Position. The Employee shall serve in the position described in Exhibit A attached hereto. In such position the Employee shall report regularly and shall be subject to the direction and control of the person specified in Exhibit A. The employee shall also serve as an officer of Company’s parent company, DarioHealth Corp., a Delaware corporation (the “Parent”) and in such capacity, shall be subject to the direction and control of the Parent’s board of directors. The Employee shall perform her duties diligently, conscientiously and in furtherance of the Company's best interests. The Employee agrees and undertakes to inform the Company, immediately after becoming aware of any matter that may in any way raise a conflict of interest between the Employee and the Company. During her employment by the Company, the Employee shall not receive any payment, compensation or benefit from any third party in connection, directly or indirectly, with her position in the Company.

 

2.       Full Time Employment. The Employee will be employed on a full-time basis devoting 100% of full time effort, i.e. 45 hours per week, which shall be 5 days at the office (the "Scope of Employment") in those working days and hours which will be determined by the Company subject to its business needs. The Employee shall devote her entire working hours to the business of the Company and shall not undertake or accept any other paid or unpaid employment or occupation or engage in any other business activity, which conflict with her obligations under this Agreement . The Employee’s weekly rest day shall be Saturday, unless otherwise determined by the Company in a notice to the Employee.

 

3.       Location. The Employee shall perform her duties hereunder at the Company's facilities in Israel, but she understands and agrees that her position may involve significant domestic and international travel.

 

4.       Employee's Representations and Warranties. The Employee represents and warrants that the execution and delivery of this Agreement and the fulfillment of its terms: (i) will not constitute a default under or conflict with any agreement or other instrument to which she is a party or by which she is bound; and (ii) do not require the consent of any person or entity. Further, with respect to any past engagement of the Employee with third parties and with respect to any permitted engagement of the Employee with any third party during the term of her engagement with the Company (for purposes hereof, such third parties shall be referred to as "Other Employers"), the Employee represents, warrants and undertakes that: (a) her engagement with the Company is and/or will not be in breach of any of her undertakings toward Other Employers, and (b) she will not disclose to the Company, nor use, in provision of any services to the Company, any proprietary or confidential information belonging to any Other Employer.

 

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Notwithstanding Section 2 herein, nothing in this Agreement shall prohibit the Employee from (a) serving on civic, educational, philanthropic, or charitable boards or committees; (b) and with consent of the CEO and the Audit Committee Chairman of Parent, serving on other corporate boards or committees, so long as such activities do not materially violate this Agreement; (c) making and managing personal investments so long as such activities do not materially violate this Agreement, and (d) participate as a passive co-founder of other businesses that do not materially interfere with the Employee’s obligations to the Company or materially breach this Agreement. Further, the Company expressly acknowledges and agrees that the affiliations and activities set forth in Exhibit B annexed hereto are expressly permitted.

 

Term and Termination of Employment, Change in Control

  

5.       Term. The Employee's employment by the Company shall commence on the date set forth in Exhibit A (the "Commencement Date"), and shall continue until it is terminated pursuant to the terms set forth herein.

 

6.       Termination at Will.

 

6.1       Either party may terminate the employment relationship hereunder at any time, without the obligation to provide any reason, by giving the other party a prior written notice as set forth in Exhibit A (the "Notice Period"). The Employee acknowledges and agrees that she has been given ample opportunity to consider the aforesaid waiver and further acknowledges that the Base Salary includes due consideration for such waiver. Notwithstanding the foregoing, the Company is entitled to terminate this Agreement with immediate effect upon a written notice to Employee and to pay the Employee a one time amount equal to the Salary that would have been paid to the Employee during the Notice Period, in lieu of such prior notice.

 

6.2       The Company and Employee agree and acknowledge that the Company’s Severance Contribution to the Insurance Scheme in accordance with Section 13 below, shall, provided contribution is made in full, be instead of severance payment to which the Employee (or her beneficiaries) is entitled with respect to the Salary upon which such contributions were made and for the period in which they were made (the "Exempt Salary"), pursuant to Section 14 of the Severance Pay Law 5723 – 1963 (the "Severance Law"). The parties hereby adopt the General Approval of the Minister of Labor and Welfare, which is attached hereto as Exhibit C. The Company hereby forfeits any right it may have in the reimbursement of sums paid by Company into the Insurance Scheme, except: (i) in the event that Employee withdraws such sums from the Insurance Scheme, 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. Nothing in this Agreement shall derogate from the Employee’s rights to severance payment in accordance with the Severance Law or agreement or applicable ministerial order including the General Approval of the Minister of Labor and Welfare, as set forth in this Section 6, in the event contributions to the Insurance Scheme in accordance with Section 11 below have not been made in full.

 

7.       Termination for Cause. The Company may immediately terminate the employment relationship for Cause, and such termination shall be effective as of the time of notice of the same. "Cause" means herein (a) conviction of any felony by the Employee involving moral turpitude affecting the Company or its affiliates or any crime involving fraud; (b) action taken by the Employee intentionally to materially harm the Company or its affiliates; (c) embezzlement of funds of the Company or its affiliates by the Employee; (d) falsification of Company's or its affiliates' records or reports by the Employee; (e) ownership by the Employee, direct or indirect, of an interest in a person or entity (other than a minority interest in a publicly traded company) in competition with the products or services of the Company or its affiliates, including those products or services contemplated in a plan adopted by the Company or its affiliates; (f) any material breach of the Employee's fiduciary duties or duties of care to the Company (except for conduct taken in good faith) which, to the extent such breach is curable, has not been cured by Employee within fifteen (15) days after its receipt of notice thereof from Company containing a description of the breach or breaches alleged to have occurred; (g) any material breach of the Proprietary Information, Assignment of Inventions and Non-Competition Agreement attached as Exhibit D by the Employee; and (i) any other act or omission that constitutes "cause" under the laws of the State of Israel. In the event of termination for Cause, the Employee’s entitlement to severance pay will be subject to Sections 16 and 17 of the Severance Law.

 

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8.       Notice Period; End of Relations. During the Notice Period and unless otherwise determined by the Company in a written notice to the Employee, the employment relationship hereunder shall remain in full force and effect, the Employee shall be obligated to continue to discharge and perform all of her duties and obligations with Company, and the Employee shall cooperate with the Company and assist the Company with the integration into the Company of the person who will assume the Employee's responsibilities.

 


9.        Adjustment Period. The parties agree that in the event of the termination of Employee’s employment for any reason (other than for  Cause), the Employee will be entitled to an adjustment period commencing on the lapse of the Notice Period (which shall be in addition thereof) (the “Adjustment Period”). Employee will accumulate one month in favor of the Adjustment Period, per each employment annum, commencing as of April 27, 2025, provided however, that in no event shall the Adjustment Period exceed 6 months. During the Adjustment Period, the Employee will be entitled to receive from the Company, an amount equal to the Salary, plus car maintenance (if provided herein), maintenance of cell phone, and amounts equal to those that would have been paid as Pension Arrangement and Keren Hishtalmut (as defined below) to the Employee had she still been employed by Company, and any other components of compensation payable under this Agreement, as gross adjustment fees (hereinafter: “Adjustment Fees”). The Adjustment Fees will be paid on a monthly basis. During the Adjustment Period the Employee shall reasonably make herself available , as will be mutually agreed between the Employee and the Company.

 

10.       Change of Control.

 

10.1       In the event of a Change of Control (as defined herein), Employee shall be entitled to a 6 month Adjustment Period and a full acceleration of all of her unvested Awards(as defined below). If applicable, the Salary to be taken into account for the calculation of the Adjustment Fees during the Adjustment Period shall be the Salary prior to any reduction made within the course of a the Change of Control.

 

10.2       For purposes of this Agreement, the term “Change of Control” shall mean the occurrence of any of the following: (i) any one person, or more than one person acting as a group, acquires ownership of stock of the Parent Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total voting power of the stock of the Parent Company; (ii) any consolidation or merger of the Parent Company into another corporation or entity where the stockholders of the Parent Company, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own, directly or indirectly, securities representing in the aggregate more than fifty percent (50%) of the combined voting power of all the outstanding securities of the surviving corporation (or of its ultimate parent corporation, if any); (iii) the sale, lease or other transfer of all or substantially all of the Parent Company’s assets to an independent, unaffiliated third party in a single transaction or a series of related transactions; or (iv) the date that a majority of the members of the Parent Company’s Board of Directors is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Parent Company’s Board of Directors prior to the date of the appointment or election.

  

Covenants

 

11.       Proprietary Information; Assignment of Inventions and Non-Competition. Upon the execution of this Agreement, the Employee will execute the Company's Proprietary Information, Assignment of Inventions and Non-Competition Agreement attached hereto as Exhibit D. Exhibit B hereto shall survive the expiration or other termination of this Agreement.

 

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Salary and Additional Compensation; Insurance

 

12.1       Salary. The Company shall pay to the Employee as compensation for the employment services an aggregate monthly base salary in the amount set forth in Exhibit A (the "Base Salary"). In addition, since the Employee may, from time to time, work overtime hours and since the Company cannot keep specific track of all of the Employee's overtime hours, the Hours of Work and Rest Law, 1951, and any other law amending or replacing such law shall not apply to the Employee, and the Company shall pay to the Employee an additional monthly gross amount, as set forth in Exhibit A paid for all of the Employee's overtime hours, as they may be from time to time (the "Additional Compensation” theAdditional Compensation and Base Salary together shall constitute the "Salary" for purposes of this Agreement). Except as specifically set forth herein, the Salary includes any and all payments to which the Employee is entitled from the Company hereunder and under any applicable law, regulation or agreement and the Employee shall not be entitled to any additional payment, including, for avoidance of doubt, any payment for overtime hours of work or reimbursement for travel expenses to and from her home to the workplace (which are paid on global basis through the payment of the Additional Compensation). The Employee's Salary and other terms of employment may be reviewed and updated by the Company's management, from time to time, at the Company's discretion. The Salary is to be paid to the Employee no later than the 9th day of each calendar month after the month for which the Salary is paid, after deduction of applicable taxes and like payments.

 

12.2       Special Compensation for Non-Competition Obligations. The Employee acknowledges that 20% of the Salary is paid as special supplementary monthly compensation in consideration for the Employee's non-competition undertakings and obligations set forth in Exhibit D hereto (the "Special Non-Competition Monthly Compensation"). The Employee warrants and represents that the Special Non-Competition Monthly Compensation constitutes a real, appropriate and full consideration to any prejudice she may suffer due to her non-competition undertakings and obligations set forth in Exhibit B hereto, including but not limited to restriction of her freedom of employment.

 

13.       Insurance and Social Benefits. The Company will insure the Employee under a "Manager's Insurance Policy" ("Bituach Menahalim") ("Policy") or a Pension Fund ("Pension Fund"), to be selected by the Employee. The employee shall be entitled to contributions to a pension arrangement of her choice (the "Pension Arrangement"), at the following monthly rates:

 

(a) The Company shall contribute:

 

(i) 8.33% of the Salary towards the severance pay component; and

 

(ii) 6.5% of the Salary towards the pension component.  In case Employee is insured in a mangers insurance policy or a provident fund (which is not a pension fund), the said rate shall include the rate of contributions towards the disability insurance, ensuring loss of earning payment of 75% of the Salary but no less than 5% towards the pension component, all subject to the terms of the Extension Order regarding the Increase of Pension Contributions - 2016 (the "Pension Order 2016"). In accordance with the terms of the Pension Order 2016, if the said rate shall not be sufficient to insure you in disability insurance, the total rate of contributions shall increase up to 7.5% of the Salary.

 

(b) The Company shall also deduct 6% of the Salary to be paid on Employee’s account towards the Pension Arrangement.

 

13.1. By signing this Agreement, Employee acknowledges that in accordance with the terms of the General Order, if Employee chooses to be insured in a Pension Arrangement, which is not a pension fund, Employee must also be insured in disability insurance, ensuring loss of earning payment of 75% of the Salary (or the relevant portion of the Salary which the Employee chooses to insure in such an arrangement).

 

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13.2. Additionally, the Company together with the Employee will maintain an advanced study fund ("Keren Hishtalmut") and the Employee and the Company shall contribute to such fund an amount equal to 2.5% (two percent and one half of a percent) of the Salary and 7.5% (seven percent and one half of a percent) of the Salary, respectively. All of the Employee's aforementioned contributions shall be transferred to the above referred to plans and funds by the Company by deducting such amounts from each monthly Salary payment. Any tax consequences for payments made for amounts greater than the maximum amount exempt from tax under applicable laws will be borne by the Employee.

 

Additional Benefits

 

14.       Expenses. The Company will reimburse the Employee for traveling expenses and cell phone expenses as defined in Exhibit A. The Company shall pay or reimburse the Employee for other business expenses borne by the Employee, provided that such expenses were approved in advance by the Company, and against valid invoices therefore furnished by the Employee to the Company, all in accordance with the Company's policy as amended from time to time.

 

15.       Vacation. The Employee shall be entitled to the number of vacation days per year as set forth in Exhibit A, as coordinated with the Company (with unused days to be accumulated up to the limit set pursuant to applicable law).

 

16.        Bonus. Upon meeting certain goals determind by the Compensation Committee and/or the Board of Directors of the Parent, the Employee will be entitled to an annual bonus, to be paid on an annual basis as defined in Exhibit A (the “Bonus”). The Bonus will be paid together with the monthly Salary for the month of March of the following year. For the avoidance of any doubt, any Bonus paid to Employee, being a conditional payment, shall not constitute a part of the Salary for all intents and purposes. If applicable, Employee is entitled to receive Bonus payments on events that materialized during the Notice Period and during the Adjustment Period.

 

17.       Sick Leave; Convalescence Pay. The Employee shall be entitled to that number of paid sick leave per year as set forth in Exhibit A (with unused days to be accumulated up to the limit set pursuant to applicable law), and also to Convalescence Pay ("Dmei Havra'a") pursuant to applicable law.

 

18.       Mobile Phone. During the term of this Agreement the Company will provide the Employee with a Company's mobile phone, for use in connection with Employee's duties hereunder, pursuant to Company's policy, as adopted, as may be amended from time to time by the Company. The Company shall bear all expenses relating to the Employee’s use and maintenance of the phone attributed to the Employee under this Section.

 

19.       Company Car.

 

19.1       Should the Employee choose, the Company will provide the Employee with a car of make and model pursuant to the Car Leasing Agreement to be entered between the Employee and the Company (the “Car”, and "Car Leasing Agreement", respectively). The Car shall belong to or be leased by the Company and shall be registered in the Company’s name for use by the Employee during the period of her employment with the Company. The Car will be returned to the Company by the Employee immediately after termination of the Employee's employment by the Company (or the lapse of the Adjustment Period, if applicable). Use by the Employee of the Car shall be made at all times only in accordance with the provisions of the Car Leasing Agreement and the Company's Car Use policy, as may be amended from time to time by the Company. The Employee shall bear all the personal tax consequences of the allocation of the Car to her benefit. Any expenses, payments or other benefits that are made in connection with the Car shall not be regarded as part of the Salary, for any purpose or matter, and no social benefits or other payments shall be paid on its account.

 

19.2       Without derogating from the terms of the Car Use policy, it is hereby clarified that the leasing amount and gasoline costs according to the Company’s policy, shall be deducted from the employees total compensation Salary (Base plus Additional Compensation – as laid out in Exhibit A) and that the Salary after such deduction will be the basis for Salary-basis entitlements.

 

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20.       Options and restricted shares. The Parent may, from time to time, at its sole discretion, grant the Employee restricted shares or options to purchase shares of common stock of the Parent (each, as applicable: the “Award”). The Options shall be subject to the terms of the Parent’s 2020 Equity Incentive Plan and the 2020 Israeli Sub Plan thereto (together, the “Option Plan”), as may be amended from time to time, or any successor plans, and an Restricted Shares Agreement or an Option Agreement to be executed between Parent and the Employee. The Employee acknowledges that she will be required to execute additional documents in compliance with the applicable tax laws and/or other applicable laws. Subject to the approval of the Board of Directors of Parent, and at the first possible opportunity, Employee shall be granted 500,000 restricted shares of common stock of Parent, to be vested over a three years period commencing as of the Commencement Date, and subject to a one year cliff.

 

20.1       Any Award will also include a single trigger clause as follows: “The vesting period shall immediately end, and all unvested Awards shall immediately vest, in the event a Change in Control (as defined in the Employee’s Employment Agreement)”.

 

20.2       Based on pool availability and status of the Parent, the Parent will apply a yearly grant of additional Awards.

 

21.       D&O Insurance and indemnification. The Company agrees to cause Parent to continue and maintain a directors’ and officers’ liability insurance policy covering the Employee at a level, and on terms and conditions, no less favorable to her than the coverage the Parent provides other similarly-situated executives or directors until such time as suits against the Employee are no longer permitted by law. Furthermore, the Parent will provide indemnification to the Employee for her capacity as an officer of the Company and the Parent.

 

Miscellaneous

 

22.       The laws of the State of Israel shall apply to this Agreement and the sole and exclusive place of jurisdiction in any matter arising out of or in connection with this Agreement shall be the Tel-Aviv Regional Labor Court. The provisions of this Agreement are in lieu of the provisions of any collective bargaining agreement, and therefore, no collective bargaining agreement shall apply with respect to the relationship between the parties hereto (subject to the applicable provisions of law). No failure, delay or 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. In the event it shall be determined under any applicable law that a certain provision set forth in this Agreement is invalid or unenforceable, such determination shall not affect the remaining provisions of this Agreement, unless the business purpose of this Agreement is substantially frustrated thereby. The preface and exhibits to this Agreement constitute an integral and indivisible part hereof. This Agreement 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. The Employee acknowledges and confirms that all terms of the Employee's employment are personal and confidential, and undertake to keep such terms in confidence and refrain from disclosing such terms to any third party. All references to applicable law are deemed to include all applicable and relevant laws and ordinances and all regulations and orders promulgated there under, unless the context otherwise requires. The parties agree that this Agreement constitutes, among others, notification in accordance with the Notice to Employees (Employment Terms) Law, 2002. Nothing in this Agreement shall derogate from the Employee’s rights according to any applicable law, extension order, collective agreement or other agreement with respect to the terms of Employee’s employment.

 

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[Signature Page Below]

 

 

 

IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the date first hereinabove set forth.

 

 

/s/ Erez Raphael   /s/ Chen Franco-Yehuda
LabStyle Innovation Ltd.   Chen Franco Yehuda

  

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Exhibit A

 

To the Personal Employment Agreement by and between

LabStyle Innovation Ltd. and the Employee whose name is set forth herein

  

1. Name of Employee: Chen Franco Yehuda  
2. I.D. No. of Employee: [**]
3. Address of Employee: [**]
4. Position in the Company: Chief Financal Officer, Treasurer and Secretary
5. Under the Direct Direction of: CEO
6. Commencement Date: April 27, 2025. A formal appointment will be made approximately a month afterwards following the completion of transition period.
7. Notice Period: 90 Days
8. Salary: NIS 82,000
9. Base Salary: NIS 65,600
10. Additional Compensation: NIS 16,400
11. Vacation Days Per Year: 22, accrued vacation will be paid upon termination of employment
12. Travel Allowance 500 NIS
13. Bonus A gross amount of up to six times the Salary, subject to meeting certain milestones as annualy approved by the Compensation Committee and/or the Board of Directors 
14. Sick Leave Days Per Year: The Employee should be entitled to fully paid sick leave pursuant to applicable sick law.
15. Adjustement Period Employee will accumulate one month for the Adjustment Period, per each full year of employment by the company, but in no event shall the Adjustment Period exceed six (6) months
16. Adjustement Period during Change in Control Six (6) months

  

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Exhibit B

 

Board member at Brenmiller Energy Ltd. 

 

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EX-10.2 3 tm2512724d1_ex10-2.htm EXHIBIT 10.2

 

Exhibit 10.2

  

CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT DARIOHEALTH CORP. TREATS AS PRIVATE OR CONFIDENTIAL. OMISSIONS ARE DENOTED IN BRACKETS WITH ASTERISKS THROUGHOUT THIS EXHIBIT.

  

Termination of Employment and Separation Agreement

  

 

Between: LabStyle Innovation Ltd., No. 514668466 (the "Company")

  

 

And: Zvi Ben David, I.D. No. [**] (the "Employee")

  

 

WHEREAS: The Employee is employed by the Company as of January 8, 2015 (the "Commencement Date"), all in accordance with the provisions of the employment agreement dated January 8, 2015 as was amended from time to time (the “Employment Agreement”); and

 

WHEREAS: to this date, the Employee acts in the position of Chief Financial Officer (the "Position") of the parent DarioHealth Corp. and the Company ; and

 

WHEREAS: The Employee and the Company have mutually agreed following the employees request on termination of Employee's employment with the Company; and

 

WHEREAS: Following negotiations, the Company and the Employee (the “Parties”) reached an agreement with respect to Employee's termination package, and they wish to put in writing their mutual obligations, as detailed in this termination and separation agreement (the “Agreement”).

  

 

NOW, THEREFORE, the parties hereby agree as follows:

 

1. Termination of the Position: On May 15, 2025 the Employee will step down from the Position and will be exempted from all of his duties and responsibilities, and will become an advisory board member with the responsibilities as defined in Exhibit A. The Employee will continue to be employed as full time employee until June 30, 2025 in order to allow a smooth transition of his responsibilities to the newly appointed CFO, and from July 1 2025, make himself available for any questions or assistance the Company may need, until the Termination Date. During the period and until the Termination Date, the Employee will be allowed to be involved in other activities, paid or unpaid, in any capacity, subject to the Employee's undertakings according to this Agreement, including but not limited to section ‎13 of this Agreement.

 

2. Communication of Termination: The Parties will communicate the Employee's termination of the Position to the Company's employees and/or clients and/or suppliers and any other relevant third parties by releasing a mutually agreed notice, as follows: "Zvi has asked to retire from his position after more than 10 years of service and would like to have more time with his family and explore new directions, and therefore will move to a part time position as advisory board member”. In addition, the Company will file a report to the SEC and/or the NASDAQ, as required by law.

 

3. Adaptation Period: according to the Employment Agreement the Employee is entitled to 3 months' notice period. The Company agreed to grant the Employee, on an ex-gratia basis, with a much longer adaptation period of 28 months, starting July 1 2025 and ending October 31, 2027 (the "Adaptation Period"). During the Adaptation Period the Employee will continue to be employed by the Company and to be entitled to receive a monthly salary of NIS 52,500 during the period from July1, 2025 until December 31, 2025, and a monthly salary of NIS 47,630 during the period from January 1, 2026 until October 31, 2027 (gross) (the "Adjusted Salary") and all other benefits according to his Employment Agreement, as shall be calculated and paid according to the Adjusted Salary.

 

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4. All the payments the Employee shall receive during the Adaptation Period based on the Adjusted Salary and the 2025 Shares in accordance with this Agreement shall be referred to, together as "Termination Package".

 

5. Termination Date: the employment relationship between the Partied shall terminate at the end of the Adaptation Period on October 31, 2027 (the "Termination Date"). The period as of the Commencement Date and until the Termination Date shall be referred to in this Agreement as "Employment Period".

 

6. Notice Period: according to the Employment Agreement the Employee is entitled to 3 months' notice period. The Employee has asked to spread this period into a 6 months period while reducing his salary accordingly. Hence, the Employee expressly confirms that the Termination Package will be in lieu of the payment for notice period according the Employment Agreement, and he will not be entitled to any additional payment for the notice period, other than the Termination Package.

 

The Employee confirms that he was presented with a detailed calculation, supporting the above declaration, comparing his legal and contractual entitlements to the Termination Package.

 

7. Accrued Vacation: At the end of June 2025, the Employee will have 184.7 accrued annual leave days. The Employee confirms that the Termination Package will be in lieu of the redemption of any accrued vacation days as per law and Employment Agreement.

 

The Employee confirms that he was presented with a detailed calculation, supporting the above declaration, comparing his legal and contractual entitlements to the Termination Package.

 

8. Final Settlement of Account: upon Termination Date, together with the monthly salary for October 2027 and/or on the date required by law, a final settlement of account shall be carried out, and the Company shall pay to the Employee the following sums and/or provide the Employee with the following documents:

 

8.1. Payment of the Adjusted Salary through the Termination Date.

 

8.2. Payment of any unpaid recuperation pay through the Termination Date, all subject to applicable law.

 

8.3. Provide the Employee with letters of release with respect to the amounts accrued under the Employee's managers’ insurance policy and/or pension fund (severance pay and pension component). Due to the application of the arrangement under Section 14 of the Severance Pay Law, the Employee shall not be entitled to any other or additional payment with respect to severance pay other than the release of the accrued severance, as stated in this section.

 

8.4. Provide the Employee with 161 Form with respect to the released severance pay, as stated in section ‎8.3 above.

 

8.5. Provide the Employee with letters of release with respect to the amounts accrued under the Employee's education fund.

 

8.6. Provide a letter of confirmation of the Employee's employment period.

 

9. Options and Capital Grants: all options and capital grants granted to the Employee during the Employment Term, shall be governed by the terms and conditions of the Company’s relevant option plan and the Employee's relevant option agreements and/or grant letters. Any outstanding, but unvested options and capital grants shall expire upon and become of no force and effect on the Termination Date.

 

10. Taxation: All payments and benefits related to the Employee's employment and its termination, including those set forth herein, are gross payments, from which tax and other compulsory payments shall be deducted, as required by law.

 

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11. Ex-gratia Benefits: The Company’s agreement to grant the Employee the ex-gratia benefits, providing his with the Termination Package, as stated in this Agreement, is conditioned on the Employee's full and complete satisfaction of all applicable obligations pursuant to any law and/or Employment Agreement and/or and this Agreement, without exception.

 

12. Return of Company's Property: Upon the Termination Date, the Employee will deliver to the Company all of the Company’s property in his possession, including but not limited to any documents, written materials, any electronic devices (including laptop, PC, smartphone, tablet etc.) any cards provided by the Company to the Employee and any of the Company's keys.

 

13. Confidentiality and Unfair Competition: All undertakings applicable to the Employee pursuant to law and the Employment Agreement, relating to confidentiality, intellectual property ownership and assignment, non-compete and non-solicitation, shall remain in full force and effect and shall continue to oblige the Employee, all in accordance with the provisions of the Employment Agreement. It was agreed between the Parties, that the unfair competition obligation of the Employee will apply until June 30, 2026.

 

14. No Disparagement: Each party undertakes to maintain the dignity of the other party, not to defame or to slander the other party, even if one party believes in the content. It is hereby clarified that statements by unauthorized employees and managers of the Company, who are not qualified to bind the Company, will not be considered a violation by the Company of the provisions of this Section.

 

15. Waiver and Release: Subject to the timely payment/provision by the Company of all amounts/benefits provided in this Agreement, specifically the Termination Package, the Employee irrevocably declares and warrants the following:

 

15.1. The Employee confirms that he has received from the Company all of the rights and the amounts which are due to him in connection with the entire Employment Term and/or the termination of his employment, including salary, overtime, vacation pay and/or vacation redemption pay, sick pay, recuperation pay, holiday pay, contributions to pension schemes, contributions to education fund, premiums and bonuses of all kinds, travel expenses and/or car allowance, notice period pay and severance pay, personal injury or any other claim for damages or injury of any kind whatsoever, stock or stock options or other capital grants, exercising options and any other payment arising from the Employment Term and/or from the termination of employment, including with respect to the circumstances of such termination, discrimination, wrongful dismissal and restrictions on layoffs (including the process of termination which the Employee waived), to which he was or may have been entitled by virtue of any law and/or statute and/or Employment Agreement and/or Company's practice.

 

15.2. The Employee confirms that the payments, including all the ex-gratia Termination Package, as set forth in this Agreement, constitute the final, agreed and absolute arrangement, which exhausts all of the claims, demands and lawsuits of the Employee against the Company, and that he has no claims and shall have no claims, demands or lawsuits against the Company, and the Employee undertakes to refrain from any legal proceeding against the Company with regard to claims and/or demands and/or lawsuits of any kind or nature, contractual, tort or other, based on any grounds whatsoever, or in any manner whatsoever, which are known on the date of the signing of the Agreement, and such which are not known, and which arise from any law or statute whatsoever.

 

15.3. The Employee hereby specifically waives any right, claim, or demand he may have, if any, with respect to ownership of any intellectual property that was created by him during the Employment Term and /or any special consideration for such property, including but not limited to any claim for consideration regarding Service Invention, under Article 134 of the Patents Law, 1967 and claim or demand regarding the eligibility to receive royalties, compensation or rewards before the Compensation and Royalties Committee set up at the Office of the Patents Registrar.

 

15.4. The Employee confirms that this Agreement and the Termination Package shall also constitute a "package deal" and a settlement and release agreement as construed in Section 29 of the Severance Pay Law, 1963 and the Employee shall have not additional demands with respect to the severance pay.

 

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16. Corporate Approvals: This Agreement is subject to all statutory and legally required corporate approvals, including but not limited to board of directors of the Company and compensation committee of the Company, and such approvals, should they be required by law, shall be a condition precedent to this agreement being valid and in effect.

 

17. General Provisions:

 

17.1. This Agreement constitutes the entire agreement between the Parties in connection with the terms of the Employee’s termination of employment with the Company and all prior negotiations, agreements and understandings, written or oral, between the Parties with respect to Employee’s termination prior to this Agreement shall be of no force or effect.

 

17.2. No amendment and/or modification of this Agreement shall have any effect unless such amendment or modification shall be done in a written document, signed by both Parties.

 

17.3. Nothing in this Agreement shall derogate from any of the Employee’s obligations according to the Employment Agreement and the applicable law.

 

17.4. The Employee’s declarations and undertakings towards the Company under this Agreement shall also apply, mutatis mutandis, to any entity related to the Company by way of a relationship of a parent company, sister company, and so on and so forth, and its employees and/or directors and/or its authorized representatives and/or acting on its behalf, including all the officers of such entities, all jointly and/or severally.

 

17.5. Both Parties have executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the other party, after being provided with the right to consult with legal counsel, after understanding the content of this Agreement and considering the implications thereof, including the release contained thereunder.

 

 

IN WITNESS WHEREOF, the Parties have executed this Agreement:

 

 

/s/ Erez Raphael   /s/ Zvi Ben-David
Labstyle Innovation Ltd.   Zvi Ben David

 

 

   
April 18, 2025   April 18, 2025
Date   Date

 

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