RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 29, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 7:           RELATED PARTY TRANSACTIONS

Effective October 1, 2012, the Company entered into an agreement with a director pursuant to which the director agreed to provide it with  certain consulting and business development services relating to the introduction of the Company to potential users, licensees, and co-developers of its  products. Under this agreement, which is for an initial one year term that renews automatically for additional one-year periods if notice of termination is not provided thirty days in advance of the anniversary of the effective date of the agreement, the director would be entitled to receive a 10% commission on sales if the Company entered into a licensing agreement  with a third party and a 5% commission on sales to a third party that does not enter into a license agreement with it. In addition, the Company agreed that if the director is instrumental in the sale of any of its securities to a third party, the Company would enter into an agreement to compensate him for such services, based upon the fair market value of such services. The Company also agreed to pay him an expense allowance of $2,500 a month and paid him a total of $7,500 in the year ended December 29, 2012. This agreement was approved by the Company’s audit committee and board of directors, with the director abstaining from such consideration.