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* * * * * * *
It is anticipated that the Oshap Companies will produce
the software to be integrated in the Robcad
workstation, if the project is successful. During the
first stage of the R&D Project, it is not expected that
Robcad would manufacture any hardware but would
purchase it from third parties; Robcad would integrate
such hardware with the software it develops. At a
later stage, Robcad may manufacture some special
hardware and firmware, * * *
After Oshap completed development of the technology it was
developing in the Oshap R&D project,36 two of Oshap’s affiliates,
Robcad and Robcad Computers, exercised their buy-out options to
acquire all rights to the Oshap technology and made lump-sum
payments to I-Tech of $150,000 and $1,100,000, respectively.
After exercising their options, Robcad and Robcad Computers paid
royalties to I-Tech.
Oshap successfully exploited the Oshap technology. After
extensive negotiations with Oshap and its affiliates, I-Tech was
able to convert its option to exchange its royalty rights for
equity interests in Robcad and Robcad Computers to an option to
obtain an equity interest in Oshap, the parent corporation which
made a public offering of its stock in the U.S. market. I-Tech
exercised its option to obtain an equity interest in Oshap and
continues to own an interest in Oshap.
36Development of an advanced computer-aided engineering
workstation for designers and implementers of automated
manufacturing processes that use robots.
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