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COMMITMENTS AND CONTINGENT LIABILITIES
 12 Months Ended
Dec. 31, 2013
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES
NOTE 12:-
COMMITMENTS AND CONTINGENT LIABILITIES

 
a.
Commitments:

 
1.
Royalty commitments:

 
a)
Under the Company's research and development agreements with the Office of the Chief Scientist ("OCS") and pursuant to applicable laws, the Company is required to pay royalties at the rate of 3.5% of sales of products developed with funds provided by the OCS, up to an amount equal to 100% of the research and development grants (dollar-linked) received from the OCS. The obligation to pay these royalties is contingent upon actual sales of the products. Royalties payable with respect to grants received under programs approved by the OCS after January 1, 1999, are subject to interest on the U.S. dollar-linked value of the total grants received at the annual rate of  LIBOR applicable to U.S. dollar deposits at the time the grants are received. No grants were received during the years 2012 and 2013.

As of December 31, 2013, the Company has an outstanding contingent obligation to pay royalties to the OCS, including interest, in the amount of approximately $ 3,316, with respect to the grants, which is an off-balance sheet contingent commitment. During 2012 and 2013, the developed software for which the grant was received is no longer being sold, accordingly no royalty expenses were recorded during the respective years.
 
  
 
2.
The facilities of the Company are rented under operating lease agreements that expire on various dates ending in 2018. Minimum future rental payments are:.

2014
   $ 113  
2015
     81  
2016
     34  
2017
     30  
2018
     30  
         
    $ 288  
 
The Company's motor vehicles are leased under various cancelable operating lease agreements. The lease agreements for the motor vehicles expire on various dates ending in 2016.

Lease expenses for the facilities occupied by the Company and the Company's motor vehicles in 2013, 2012 and 2011 amounted to $ 405, $ 420 and $ 551, respectively.

 
3.
Litigation:

On November 2008, Blockshtil Ltd. filed a claim in the Petach-Tikva Magistrate Court alleging breach of contract by the Company and seeking damages in the amount of NIS 149 (approximately $43). During 2012, the Company has served a statement of defense and the case has been heard. On June 13, 2013 the court dismissed the claim and ordered Blockshtil to pay the Company for legal expenses.