Page 15 - E-ATS (A)

Litan now asked for the three Russian scientists to have e-mail
accounts on the web site and administrative access, along with him, to
the site in order to make changes to it if necessary. Jim's response

was that this was dangerous as you could not have so many people
making random changes to the web site. It was better to have it
centralised.

Finally, Jim asked about the customer base. That in order to sell the
product it had to be tested and certified as well as having product
liability insurance. Litan responded that his market was Africa and that
he had arranged to have the prototype built and tested at Scottish
water. Jim asked what had happened to Thames Water after all Litan
had said they had agreed to test the product. Litan said that he had
just arranged this with Scottish Water as it was based close by. Jim
asked if this was an open ended arrangement as Litan had not yet
arranged for the sourcing let alone purchase of the component parts.
Also, where did Africa come from? After all he had been speaking over
the last two months about India which was vastly different from Africa.
Litan's response was that his people were in Africa and did not think he
needed expensive product liability insurance until he had sold his
product and this would be in Africa.

At this point Jim said that he had no confidence in the veracity of Litan
and that he could not work where information which was crucial to
developing the company was withheld and in some cases was
untruthful. He said he had no wish to continue his relationship with the
company and was pulling out.

Litan entreated Jim to reconsider. That he really wanted Jim on-board
and that he wanted to offer Jim a 20% stake in the company and that
working together they could control the company.