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RELATED PARTIES
12 Months Ended
Dec. 31, 2014
RELATED PARTIES [Abstract]  
RELATED PARTIES

NOTE 18          RELATED PARTIES

 

A.     Avner Gal, the beneficial owner of approximately 7.71% of the Company's outstanding Common Stock as of December 31, 2014, entered into an employment agreement with Integrity Israel in July 2010 pursuant to which Mr. Gal agreed to continue to serve as the chief executive officer and managing director of Integrity Israel.  The agreement was approved by the board of directors and stockholders of Integrity Israel. Mr. Gal's employment agreement provides for an annual salary of approximately $133,593 (NIS 480,000) and an annual bonus to be determined by the board of directors and an additional sum provided that Mr. Gal reaches certain milestones approved by the board, as well as the payment of certain social and insurance benefits and the use of a car.  The agreement also provides for a renegotiation of Mr. Gal's annual salary on the one-year anniversary thereof and the renegotiation of Mr. Gal's bonus formula once Integrity Israel has begun commercialization of its products.  The agreement is terminable by either party on 180 days' notice, immediately by Integrity Israel with the payment of an amount equal to 180 days of annual salary, or immediately by Integrity Israel for cause (as defined in the agreement) without the payment of severance.  Mr. Gal is subject to a non-compete and a confidentiality agreement during the term of the agreement and for one year thereafter. During the year ended December 31, 2014, the Company did not pay any bonuses under, or otherwise make any amendments to, Mr. Gal's employment agreement.

 

B.    David Malka, the beneficial owner of 3.48% of the Company's outstanding Common Stock as of December 31, 2013, entered into an employment agreement with Integrity Israel in July 2010 pursuant to which Mr. Malka agreed to continue to serve as the vice president of operations of Integrity Israel.  The agreement was approved by the board of directors and stockholders of Integrity Israel. Mr. Malka's employment agreement provides for an annual salary of approximately $66,796 (NIS 240,000) and an annual bonus to be determined by the Board of Directors in its sole discretion and an additional sum provided that Mr. Malka reaches certain milestones approved by the Board, as well as the payment of certain social and insurance benefits and the use of a group three car.  The agreement also provided for a renegotiation of Mr. Malka's annual salary on the one-year anniversary thereof and the renegotiation of Mr. Malka's bonus formula once Integrity Israel has begun commercialization of its products.  The agreement is terminable by either party on 90 days' notice, immediately by Integrity Israel with the payment of an amount equal to 90 days of annual salary, or immediately by Integrity Israel for cause (as defined in the agreement) without the payment of severance.  Mr. Malka is subject to a non-compete and confidentiality agreement during the term of the agreement and for one year thereafter. During the year ended December 31, 2014, the Company did not pay any bonuses under, or otherwise make any amendments to, Mr. Malka's employment agreement.