Page 5 - E-ATS (A)

Jim asked what Litan wanted from him. The answer was he wanted
him to join and help set-up the company and to develop it into the
future. That he would be involved in the negotiation with the clients
especially at government level. Litan felt that he needed someone to
run the company and ensure it developed properly. The company
ownership would be split equally between Litan, Jim and the Russian
scientist.

Litan then said he needed to incorporate the company as soon as
possible and suggested that one of Jim's addresses be used as the
company address and that Jim be named a director of the company
along with Litan and the scientist. They would also have to come-up
with a name for the company and build a website.

Jim's response was that he agreed in principle and would join the
company. But, he could not act as a director at this stage as this would
make him and his assets liable to any debts should the new company
fail. He would, therefore, hold off taking a stake in the company or
becoming a director until he had taken advice on the implications of
doing so. He then asked Litan to provide all the information he had so
that he could start work on the set-up of the company. Litan however,
emphasised that he really needed to have a web site and an e-mail
address for the customers he was currently dealing with to use.
Moreover, he needed to have the words European and technologies in
the title of the company to give confidence to those customers.

On the 12 January Jim received an e-mail from Litan.

Jim now arranged to purchase a domain name, the hosting of the web
site and its construction. In addition he planned to approach his own
Lawyer and accountant for advice on the set-up and registration of the
company.