board charter, page-5

FactorX,

In the conduct of business one has to establish relationships particularly when entering a new regional market such as Asia. Chinese businessmen are very sharp and have their own cultural ways of connection building, the ‘guanxi’ approach. If we want NuSep to succeed in Asia, NSP management will have to learn rapidly what this means. I think they are in that process.

Management is in a dilemma. Mr Goh is no mean fellow. He does not run a corner store. He is a highly connected competent person. He understands high level Chinese business superbly both in Singapore and in China. Among other things he in fact coaches business executives. It would probably be through him that later openings in China may occur. I suspect that he is an ideal person for NSP to have on board (ship) in some capacity. While I know nothing about the specific relationships with him that have been established in the past 12 months, the predicament is that management has to try to squeeze one of their prime facilitators for money. This requires some diplomacy. Standard legal suing procedures may be most counter productive. Perhaps you could take that into account?

Andrew Goodall is a very down-to-Earth, sane and sensible businessman with diverse interests. He happens to have a stake of 19.9% in NuSep and has been a great support for the company in difficult circumstances. It is a bit puzzling that you are so emphatically negative about his board position. Is a board seat on NSP really worth as much as you suggest?

I hope that the final accounts will contain more explanatory detail. I have my own long list of questions for many of which I can infer my own answers. I do appreciate reading yours.

Juke