Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Transactions and Balances with Related Parties

v3.8.0.1
Transactions and Balances with Related Parties
12 Months Ended
Dec. 31, 2017
Disclosure of transactions between related parties [abstract]  
Transactions and Balances with Related Parties
Note 15 - Transactions and Balances with Related Parties

A.
On December 30, 2008, the Company's shareholders approved the terms of a management services agreement entered into among the Company, Kanir Joint Investments (2005) Limited Partnership ("Kanir") and Meisaf Blue & White Holdings Ltd. ("Meisaf"), a company controlled by the Company's chairman of the board and controlling shareholder,  effective as of March 31, 2008 (the "Management Agreement"). According to the Management Agreement, Kanir and Meisaf, through their employees, officers and directors, provide assistance to the Company in all aspects of the new operations process, including but not limited to, any activities to be conducted in connection with identification and evaluation of the business opportunities, the negotiations and the integration and management of any new operations and including discussions with the Company's  management to assist and advise them on such matters and on any matters concerning the Company's affairs and business. In consideration of the performance of the management services and the board services pursuant to the Management Agreement, the Company initially agreed to pay Kanir and Meisaf an aggregate annual management services fee in the amount of $250 thousand.
 
This annual amount was increased to $400 thousand in June 2013 (approximately €334 thousand ,based on the NIS/Euro exchange rate as at December 31, 2017)  following approval by the Audit Committee, Compensation Committee, Board of Directors and by the Company's shareholders at the shareholders' meeting held in June 2013.  The current term of the Management Agreement is until June 17, 2019.
 
The Company sub-leases a small part of its office space to a company controlled by Mr. Shlomo Nehama, the Company's chairman of the Board and a controlling shareholder, at a price per square meter based on the price that it pays under its lease agreements. This sub-lease agreement was approved by the Company's Board of Directors.

B.
 Compensation to key management personnel and interested parties (including directors)

Directors participate in the Company’s share option programs. For further information see Note 16 regarding share-based payments.

Compensation to key management personnel and interested parties that are employed by the Company:

   
Year ended December 31
 
   
2017
   
2016
   
2015
 
   
Number of
         
Number of
         
Number of
       
   
People
   
Amount
   
People (**)
   
Amount
   
people
   
Amount
 
         
€ thousands
         
€ thousands
         
€ thousands
 
Short-term employee
                                   
 Benefits
   
2
     
377
     
2
     
368
     
4
     
557
 
Post-employment
                                               
 Benefits
   
2
     
57
     
2
     
89
     
4
     
68
 
Share-based payments
   
2
     
-
     
2
     
*
     
2
     
*
 
 
* Less than €1 thousand
** Including retired employees that were not employed throughout the entire year

Compensation to key management personnel (including directors but excluding compensation paid under the Management Agreement) that are not employed by the Company:

   
Year ended December 31
 
   
2017
   
2016
   
2015
 
   
Number of
         
Number of
         
Number of
       
   
people
   
Amount
   
people
   
Amount
   
People (**)
   
Amount
 
         
€ thousands
         
€ thousands
         
€ thousands
 
Total compensation to directors not employed by the Company
   
3
     
35
     
3
     
63
     
3
     
61
 
 share-based payments
   
3
     
14
     
3
     
3
     
3
     
6
 

* Less than €1 thousand
** Including Board members that did not serve throughout the entire year

C.
Debts and loans to related and interested parties
 
                   Interest income recognized in statement of   
     The terms of the loan    
Balance as at December 31     
     income for the year ended December 31  
     Interest rate    Linkage base  
2017
     
2016
   
2017
   
2016
   
2015
 
     %       thousands  
Dori Energy
   
8.5(*)
 
NIS+CPI
    13,025       
12,704
      1,158       
1,243
     
1,247
 
 
(*)  See note 6A