Incredimail 2009 Annual Report Download - page 53

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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, 2009, 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 March 24, 2010 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.
●
each of our executive officers;
●
each of our directors; and
●
all of our directors and executive officers as a group.
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