Emblaze Ltd fkz BLZ

[MagShoe]

Personal Claim against Adv. Doron Afik


Due to the Trustee's refusal to transfer the escrow funds relating to the two remaining Consortium Agreements to the Company, the Company believes the Trustee breached his duties as Trustee and caused damage to the Company. Therefore, on June 9, 2011, the Company filed a statement of claim for damages of NIS 1,000,000 against the Trustee, along with an ex-parte motion for a lien on all of the Trustee's bank accounts.
On June 16, 2011, the court rendered its decision granting the lien subject to the Company depositing certain securities. The Trustee then filed a motion to cancel the lien and the court decided to transfer the proceedings to the District Court, but that the lien would remain in effect until a decision by the District Court. The District Court for Tel Aviv-Yaffo ordered the removal of the lien, and later on at the parties' mutual request, the court ordered to transfer these proceedings to arbitration.
On November 10, 2011 the Company submitted its statement of claim against Adv. Afik to the Arbitrator, in the same form as previously submitted to the court.
On January 15, 2012, Adv. Afik submitted his Statement of Defense to the claim against him, denying all of the Company's claims against him. Also on January 15, 2012, Adv. Afik submitted a counterclaim against Optibase, or the Afik Counter-Claim. In the Afik Counter Claim Adv. Afik demands to receive an aggregate sum of NIS 2,474,693.18 from the Company. Adv. Afik's claim is based on three main claims: (i) The Company's response to an article published in the website www.sponsor.co.il constitutes libel against Adv. Afik for which he is owed damages of NIS 500,000; (ii) By obtaining liens on Adv. Afik's assets, the Company caused Adv. Afik damages of NIS 1,465,494.46; and (iii) That a publication about the liens obtained on Adv. Afik's assets also constitutes libel against Adv. Afik for which he is owed NIS 509,198.72.
The Statement of Defense on behalf of the Company was submitted on March 4, 2012.
Evidentiary hearings on the Vitec Arbitration are scheduled for July 8-10, 2012.
We believe that the Company has strong legal and factual arguments to defend itself from the claims in the Afik Counter Claim.
http://sec.edgar-online.com/optibase-ltd/20-f-annual-and-transition-report-foreign-private-issuer/2012/04/30/section14.aspx