- 9 -
In connection with the R&D projects undertaken by the R&D
companies, RSI agreed to assist WTI in providing services on
behalf of I-Tech.
The contract constituted the entire agreement among WTI,
WorldTech U.S., and I-Tech. The contract did not make any of the
parties the employee, agent, partner, or legal representative of
the other for any purpose whatsoever. Each party acted as an
independent contractor.
Funding
The Israeli Government, through the Industrial Development
Bank of Israel (IDB), provided loans with respect to each R&D
project. These loans were limited to an amount equal to 54
percent of the total funds needed for each R&D project (primary
loans).21 I-Tech funded 36 percent of each R&D project using
proceeds from the sale of limited partnership interests and a
$1,585,000 commercial loan from the Israel General Bank, Ltd.
(General Bank).22 Each R&D company contributed the remaining 10
21The limited partners in I-Tech have not repaid any portion
of their pro rata shares of the recourse loans that the
Industrial Development Bank of Israel Limited made on behalf of
the Chief Scientist of the Ministry and Trade in Israel in
connection with the R&D projects.
22I-Tech repaid the recourse loan that the Israel General
Bank, Ltd., made to I-Tech in connection with the R&D projects.
The loan was repaid from the funds received by I-Tech from Efrat,
AiTech, and Oshap when those R&D companies exercised their
options. These transactions were noted on the partnership’s tax
(continued...)
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011