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others and will subcontract the production of printed
circuit cards to be incorporated in the products.
AiTech30 completed the development of the technology it was
developing in the AiTech R&D project.31 Within the required time
period, AiTech exercised its option to acquire all right, title,
and interest in the AiTech technology beginning 6 months and 1
day after the research was reduced to practice. In December
1988, I-Tech exercised its option to exchange its right to
receive royalties for a 20-percent equity interest in AiTech.
3. Cycon
Cycon’s marketing and manufacturing plans were stated in the
PPM, in part, as follows:
It is contemplated that Cycon will market the proposed
system in Israel and abroad both directly to end users
and through distributors. Cycon has not developed any
marketing forces. Although Cycon presently lacks any
service capability, it has verbal agreements and
understandings with machine-tool manufacturers (OEM)
and distributors in Europe, principally in Italy,
Spain, Belgium, the United Kingdom, and Germany, as
well as in the United States, according to which such
companies will undertake to promote, sell, maintain and
provide all after-sale services of Cycon products.
Cycon contemplates that Cycon personnel would service
the systems in Israel. Cycon expects to enter into
service agreements with foreign companies in order to
arrange for servicing of the systems for non-Israel
users.
30RSI, which was controlled by Mr. Yaakov, owned 29 percent
of AiTech.
31A “ruggedized” computer system specifically designed to
operate under severe environmental conditions.
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