Incredimail 2012 Annual Report Download - page 61

Israeli law generally requires the payment of severance by employers upon the retirement or death of an employee or upon termination
of employment by the employer or, in certain circumstances, by the employee. 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 from 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, 2012, our net accrued
unfunded severance obligations totaled $0.4 million.
Furthermore, Israeli employees and employers are required to pay predetermined sums to the National Insurance Institute, which
covers, amongst other benefits, payments for state retirement benefits and survivor benefits, (similar to the United States Social Security
Administration) as well as state unemployment benefits. These amounts also include payments for national health insurance. The payments to
the National Insurance Institute can equal up to approximately 18.5% of wages subject to a cap if an employee’
s monthly wages exceed a
specified amount, of which the employee contributes approximately 12% and the employer contributes approximately 6.5%.
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 April 24, 2013 by all of our
directors and executive officers as a group and by each officer and director who beneficially owns 1% or more of our outstanding ordinary
shares.
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.
Except as indicated in the footnotes to this table, each shareholder in the table has sole voting and investment power for the shares
shown as beneficially owned by them. Percentage ownership is based on 12,093,699 ordinary shares outstanding as of April 24, 2013.
____________________________
Name
Number of
Ordinary
Shares
Beneficially
Owned
Percentage
of Ordinary
Shares
Outstanding
Josef Mandelbaum (1)
330,833
2.7
%
Yacov Kaufman (2)
141,167
1.2
%
All directors and officers as a group (14 persons) (3)
768,867
6.0
%
(1)
Represents options to purchase 300,000 ordinary shares at an exercise price of $4.38 per share, which expire on July 5, 2015,
20,000 ordinary shares at an exercise price of $7.50, which expire on January 19, 2016 and 10,833 ordinary shares at an
exercise price of $4.04, which expire on January 1, 2017.
(2)
Includes options to purchase, 30,000 ordinary shares at an exercise price of $3.51 per share, which expire on May 28, 2013,
20,000 ordinary shares at an exercise price of $6.75 per share, which expire on August 5, 2014, 50,000 ordinary shares at an
exercise price of $5.94, which expire on November 1, 2015, 16,666 at an exercise price of $7.50 per share, which expire on
January 19, 2016 and 7,500 ordinary shares at an exercise price of $4.04, which expire on January 1, 2017.
(3)
Includes options to purchase 709,167 ordinary shares, exercisable within 60 days of this Annual Report.
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