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Message: Thanks to a very good friend

As I read the Oct.2002 agreement...it appears that they were setting this agreement with a form of sharing in the market.
Provision C... Product Pricing......with attached Exhibit D....revenue sharing for future markets, and to negotiate for a revenue split for the IFE market...

The management of the books also seems to signify this.
Provision E.. Books, Records and rights of inspection
1. Books and records kept by APS of where e.Digitals technology
is going...available for inspection by e.Digital, Retained by Samsung and in effect for three years after termination of agreement.
2. Right of inspection by e.Digital for the above records
3. Right of inspection by APS to inspect the books of e.Digital relating to project cost
4. Confidentiality of Information, with regard to books and records of each other

IMO...this is why the cost of the DigEplayer was as cheap as I heard . They were developing a device as well as market together and forming the price structures of the hardware as well as enterprise. e.Digital got caught on the short side before it had a chance to fully develop. Where Bill then sold APS to Wencor, and Wencor ignored provision C Exhibit D.

IMO...Bill breached some of the provisions in order to pass the company off. He would have had to show them the books of where the hardware was going. That information belonged to both e.Digital and APS and held by Samsung. Provision E item 1

Or did Wencor buy this company blind?


Re: prevision J....4. Termination for Convenience....allows an easy out for Bill/APS, why was this afforded to Bill?

IMO..because e.Digital was being friendly to a start up. Had Bill felt he was in over his head he could get out, without the thought of e.Digital coming after APS. With that he would have to give e.Digital provision J item 2.....free and unrestricted access.

lots of crazy stuff going on.

doni

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