Background on Israel Licensees.

Israel lies on the western edge of Asia at the eastern extremity of the Mediterranean sea. It is bordered by the Lebanon in the north, Syria in the north and east, Jordan in the east and Egypt in the south.

It has an area of approximately 13,500 The current population is very difficult to estimate because of the very massive migration from all parts of Europe in recent years.

Hebrew and Arabic are the official languages. The topography is varied ranging from mountainous regions to desert. The principal river is the Jordan which rises at a height of 1,050 metres and it has the lowest lake in the world, the Dead Sea, about 1,200 metres below sea level.

Climate is variable dependant on the distance from the sea with hot summers and rainy winters lasting from November to April.

Israel is a democratic country led by an Executive Council nominated by the party which wins the election. The Knesset has 120 seats of all parties represented in the country.

Between the wars the UK had the unfortunate mandate of Palastine which, during the years meant that a number of UK troops were occupied in keeping the peace between Jew and Arab, never quite successfully. On 2nd. November 1917, despite a promise to the Arabs by Lawrence of Arabia who had assisted in freeing the area from Turkish rule, the Balfour Declaration issued by the British Government of the time promised a homeland for the Jews. The area has never seen peace since.

The British mandate, theoretically, ended on 14th. May 1947. Practically this was not quite true as British forces were occupied in the territory as late as July.

The Licensee.

With the compromises which had to be made with this licensee it is very difficult to say whether it was a real success. It was very much a decision of HS to appoint a licensee in Israel and to some extent it was a situation which had to be closely monitored because of the political and financial implications, certainly one of the sales territories appointed to them had to be removed because of the impracticality.

It became obvious from the study of the correspondence that Agan had bought into the situation in 1962 and that the previous owners already had entered into licensing agreements with other European companies. There was always the problems of Arab boycott, trade marks, climate, unsuitable formulations etc. which raises the questions of whether Evode profited by the situation.

There was also the underlying difference of opinion between Agan and Verolit as to their particular situations. Although Verolit appeared to be part of the organisation taken over by Agan this company always denied that it was part of the Agan group although Dr. Mordecki and later his wife appeared to be shareholders in Verolit. In fact it appeared to give great delight to Verolit to announce that it was no longer under the control of Agan.

Despite all of the above problems Mr. Riemer (Felix) who visited Stafford on many occasions always appeared to have a good relationship with the company and did his best to promote Evode products in Israel and to generate as much turnover as he possibly could.

October 2006.