Jacob and Chana Pinson, et al. - Page 8




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          Israeli officials to ensure that adequate backing existed for the           
          investment.  In order to satisfy such requirements, two                     
          agreements were entered by DPC during 1975.  DPC agreed to                  
          purchase at least 60 percent and up to 80 percent of FIL’s                  
          production until the loan was repaid.  DPC also executed a                  
          License, Technical and Marketing Assistance Agreement in which it           
          contracted to provide FIL with technical and marketing                      
          information in connection with the setup and operation of the               
          flocked fabrics enterprise.  The document further recited that              
          Pervel Industries, Inc. (Pervel), had in turn agreed to aid DPC             
          in supplying the requisite technical assistance and know-how.               
          This contract with Pervel, a U.S. manufacturer of flocked                   
          fabrics, had been obtained in order to address the fact that                
          differences in the flocked fabric and plastic laminate industries           
          rendered DPC without sufficient expertise to advise FIL on                  
          certain technical aspects of the business.                                  
               In preparation for the commencement of the FIL operations,             
          Jacob Pinson spent several months in Israel performing such tasks           
          as negotiating for utility services and finalizing the                      
          installation of machinery.  Thereafter, B. Mayer Zeiler arrived             
          in Israel and has since been the member of the Deitsch family               
          residing in Kiryat Malachi and running the FIL business.  His job           
          description as an employee of DPC states that he “is responsible            
          for all financial, administrative, sales, and production                    






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