Page 14 - E-ATS (A)

Litan said that he had dealt with the assignment of the patents as had
agreed with lead scientist that he should have 35% of the company
and that he would then assign the patents to E-ATS Ltd.

Jim queried the costing Litan had sent him. He said they were less
than helpful and why were they partly in Russian?

Litan responded that this was not a problem as his scientist in Leeds

University was compiling a list of component manufacturers and
associated costs. To this Jim said that this was the first he had heard
of this Leeds scientist being involved with the company and what the
hell was going on? Litan responded that the Leeds scientist had a

patent which he would assign to the company and was wishing to
invest some money in the company. On the basis of this Litan had
decided to give a shareholding to the scientist in Leeds.

Jim asked if this was wise after giving such a large shareholding to the
Russian scientists. In his opinion Litan was giving the company away
and would certainly face problems in the future when seeking further
investment or even opening a relationship with a UK bank.

Jim then asked why a new prototype had to be built if the original was,
as Litan had said at their first meeting, in Leeds. Litan said that this
prototype was in fact in Russia and a new one would cost not the
£6,000 he had originally said but rather, between £12,000 and £13,000
to build with the lead scientist and an assistant traveling to Edinburgh
for two weeks to construct it. To this Jim asked :

Q: why the prototype could not be built in Russia and then sent to Edinburgh thereby saving
substantial costs?

A: Litan responded that the Russian Government would not allow the export.

Q: how then did they allow the export two weeks previously of a machine to Azerbaijan asked
Jim?

A: This was part of Russia said Litan.

Q: why then could the Leeds scientist not build the prototype if it comprised off-the-shelf
parts?

A: He was not part of the company.