Incredimail 2010 Annual Report Download - page 55

D. EMPLOYEES
As of December 31, 2010 we had 107 employees all of which are based in Israel. 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.
Israeli law generally requires the payment of severance by employers upon the retirement or death of an employee or termination of
employment. The Company’
s agreements with employees in Israel, joining the Company since February 2, 2008, are in accordance with section
14 of the Severance Pay Law -1963, whereas, the Company’
s contributions for severance pay shall be instead of its severance liability. Upon
contribution of the full amount of the employee’
s monthly salary, and release of the policy to the employee, no additional calculations shall be
conducted between the parties regarding the matter of severance pay and no additional payments shall be made by the Company to the employee.
Further, the related obligation and amounts deposits on behalf of such obligation are not stated on the balance sheet, as they are legally released
from obligation to employees once the deposit amounts have been paid.
We currently fund most of our ongoing severance obligations through insurance policies. As of December 31, 2010, our net accrued
unfunded severance obligations totaled $0.3 million.
Furthermore, Israeli employees and employers are required to pay predetermined sums to the National Insurance Institute. These
amounts also include payments for national health insurance. The payments to the National Insurance Institute can equal up to approximately
16.0% of wages, of which the employee contributes approximately 10.0% and the employer contributes approximately 6.0%.
E. SHARE OWNERSHIP
Security Ownership of Directors and Executive Officers
The following table sets forth information regarding the beneficial ownership of our ordinary shares as of February 28, 2011 by:
Beneficial ownership of shares is determined in accordance with the rules of the SEC and generally includes any shares over which a
person exercises sole or shared voting or investment power. Ordinary shares that are subject to warrants or stock options that are presently
exercisable or exercisable within 60 days of a specified date are deemed to be outstanding and beneficially owned by the person holding the
stock options for the purpose of computing the percentage ownership of that person, but are not treated as outstanding for the purpose of
computing the percentage of any other person.
December 31,
2008
2009
2010
Management and administration
16
12
21
Support
16
16
14
Research and development
69
64
54
Selling and marketing
18
19
18
Total
119
111
107
•
each of our executive officers;
• each of our directors; and
•
all of our directors and executive officers as a group.
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