Below is the immediate report submitted to the Israeli Securities Authority ("ISA") and the Tel-Aviv Stock Exchange through the ISA's electronic submission system in accordance with the Securities Regulations (Periodic and Immediate Reports), 1970.
Frutarom Industries Ltd.
("Company")
Registration No.: 52-004280-5
The securities of the Company are listed for trading on the Tel-Aviv Stock Exchange
Name: Frutarom
25 HaShaish St., Haifa 26110
Tel: +972-4-846 2462, Fax: +972-4-872 2517, www.frutarom.com
Email: kbenari@frutarom.com
January 31, 2012
The Company hereby notifies that on January 30, 2012 the Board of Directors of the Company, after approval by the Audit Committee given on January 23, 2012, resolved to extend the period of exercise of the 350,000 2006 Options (Security no. 1095884, hereinafter: the "Options") granted to the President∓ CEO of the Company, and the 53,365 Options granted to the Executive Vice President∓ CFO of the Company, by 12 months. The final exercise date for these Options will now be on January 31, 2013, instead of on January 31, 2012 (the original expiry date). The total fair value of the benefit is US$ 254,000.
No additional changes will be made in the conditions of the Options.
The main reasoning named by the bodies approving the extension of the Options was as follows:
1. The main purpose of the Option (Euronext: OPTI.NX - news) was to create an additional incentive for the President∓ CFO and Executive Vice President∓ CFO (hereinafter: the "Officers") to continue devoting their best skills and energy to the promotion of the Company's businesses and to express appreciation for their actions, while encouraging their identification with the Company and sharing the outcomes of the Company's operations with them.
2. The mechanism determined enables providing an incentive to the Officers in the long term, and links the compensation to their further contribution to the Company in order to retain the service of the Officers in the Company in the future and provide an incentive for them to continue to fulfill their roles, and also in light of the great leap in business that the Company has undergone following the seven acquisitions performed over the past year, and the great importance of the continued realization of the Company's rapid growth strategy.
3. The extension of the exercise period will give the Officers better options for exercising the Options, and will cause them to realize the purposes for which they were granted.
4. In light of the reasons above, the approving organs resolved that the exercise period of the Options is reasonable, justified and acceptable under the circumstances.
For more details regarding the option issue and conditions, see the Company's immediate report dated January 4, 2006.
Sincerely,
Tali Mirsky, Adv.
Global VP Legal ∓ Corporate Secretary
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