In addition, I did not see fit to recognize the expense of payment for brokerage fees, an expense that was required during the year 2022, in the absence of any proof or explanation as to how this component of the expenses is related to the tender in question.
In light of all of the above, I have deemed it appropriate to oblige the Municipality to pay the company's expenses that it was required to pay in order to promote the project in the sum of ILS 14,8, 68 as of the date of the opinion of CPA Sitton (January 15,2025). To this sum should be added linkage and interest differentials from the date of the opinion until the date of actual payment.
The company's undertaking to pay the plaintiff 2 initiation fees
- According to the company, upon winning the tender, it undertook to pay plaintiff 2 - Dean Wachter - initiation fees in the sum of ILS 4 million, which will be paid to him upon receipt of the building permit, for the very fact that the project was brought and initiated, and regardless of the degree of success of the project (paragraph 24 of Wachter's affidavit; paragraph 13 of the affidavit of Benny David).
- The initiation agreement was signed on April 5,2016 between the company and plaintiff No. 3 (P/11), and it states, inter alia (clause 2):
"It is agreed that the company "V Equity" will be entitled to a sum of ILS 4 million in respect of the project itself being brought and initiated, regardless of its degree of success, immediately upon receipt of the building permit for the project and in accordance with clause 16 of the cooperation agreement, with the amount to be paid upon receipt of the building permit. It is also agreed that the aforementioned initiation fees will be transferred to Din Wachter as initiation fees for the project";
(Section 3): "It was agreed that in parallel with the development of the joint venture and the preparation of plans for the realization of the joint venture, the parties will act in order to sell their rights in the joint venture... The proceeds from the sale of the venture and/or the rights in equity will be divided between the parties in accordance with the provisions of the partnership agreement."