NOTE 10 - RELATED PARTIES:

During the nine month period ended September 30, 2014, the Company's chief executive officer was granted options to purchase 399,675 shares of common stock at exercise prices ranging from $2.97-$3.10 per share, as well as 182,725 shares of restricted stock. See Note 4.

During the nine month period ended September 30, 2014, directors of the Company were granted options to purchase an aggregate of 335,000 shares of common stock at an exercise price of $3.10 per share. See Note 4a.

On February 25, 2014, the Company entered into a consulting agreement with a director of the Company, pursuant to which the director agreed to provide the Company with consulting services in exchange for a monthly consultancy fee calculated at the rate of $313 per hour. On July 14, 2014, the Company appointed the director as the new executive vice president and COO and entered into an Employment Agreement with the COO. Under the Employment Agreement, the COO is entitled to an annual base salary of $365,000. The COO is also eligible to receive an annual bonus of at least $225,000 upon the achievement of reasonable target objectives and performance goals, to be determined by the board of directors in consultation with the COO. In accordance with the Employment Agreement, the Company granted the new COO a nonqualified stock option to purchase 335,058 shares of common stock, made pursuant to a Nonqualified Stock Option Agreement, an incentive stock option to purchase 114,942 shares of common stock, made pursuant to an Incentive Stock Option Agreement, and 150,000 shares of restricted stock, made pursuant to a Restricted Stock Award Agreement. The options have an exercise price of $2.61 per share, which was the fair market value of the Company's common stock on the date of grant. Both the options and the restricted stock are subject to a three-year vesting period subject to the COO's continued service with the Company, with one-third (1/3rd) of such awards vesting on the first, second and third anniversary of the grant date. See Note 4.