In response to George Ebertings Questions Today: Mr Zilba will be away on business this up coming week so he wanted me to post these today.
Dear Mr. Eberting:
Your recent E-Mail has again been passed on to me for reply. I had hoped that the quite extensive reply sent to you only two days ago, regarding many of your concerns, would have been sufficient. However,in your latest questionaire of today, you not only reiterate some of your previous concerns, but you have added quite a list of additional questions. I am answering you by having Jeff Jallo post it on SI for the benefit of everyone.
Regarding the financial capabilities of Sharp Image Gaming, I can only tell you that
the investigation we have done strongly indicates that they have the full capability to provide approximately 2100 machines to the Cojedes Lottery Project.
I have personally spoken with their bankers and their legal counsel; I have visited their headquarters and manufacturing facilities in California, along with the Governer of the State of Cojedes, Republic of Venezuela; I have checked their references within the gaming industry; and found nothing but positive signs that they are prepared and able to fulfill their commitment. We are totally unaware of any information that would cause us to have doubts concerning their ability to perform in accordance with the terms of our contract.
In answer to your question regarding the possibility that LYMCA would take possession of the VLT's with the help of the police. I am at a complete loss to understand the basis upon which you ask your question.
Approximately six weeks ago, President Bill Clinton visited Venezuela for the purpose of showing the rest of the world that Venezuela and the United States are not only neighbors, but important trading partners as well. This is not a country that is torn by civil strife and lawlessness. US business interests have invested more in Venezuela than any other country in South America. Venezuela has responded to this investment by continuing to welcome US companies to become part of their economy.
If you would have read the Independent Consultants Report on the Lottery Project, you would have been informed about the financial stability of our Venezuelan JV Partners, LYMCA. Please read the report, and then ask yourself if this sounds like a company that would be inclined to "steal" VLT's, and destroy their relationship with their American partners.
Considering the political climate in South Carolina these days, and the recent article on the front page of the Wall Street Journal, it is more likely that the Attorney General of South Carolina, along with the police, will confiscate the Video Poker machines from their owners, than our partner in Venezuela would steal our VLT's.
Regarding the possibility that Sharp Image and LYMCA would choose to bypass NorAm, you should be informed that we have a contract with Sharp Image Gaming that is governed under California law. I think your statement that, "contracts don't always cover all contingencies, and people don't always honor their contracts." leaves the door wide open for the obvious question, how else do you do business in this world if you can't rely on contracts? Your suggestions would be welcome to NorAm, and thousands of other businesses, I'm sure.
You ask other questions concerning the ownership of the machines, machines cost, payment schedule, who is going to be emptying the machines, who will verify the receipts for NorAm, how much is going to "pay off"the politicians and police, etc. etc.
These questions fall into two basic catagories:
1) Questions that indicate your need for information which would keep our small office staff busy 24 hours per day. If we were to provide the information that you are currently requesting, I feel confident that those answers would obviously lead to a multitude of other questions of the same nature. I will, however, assure you that the management experience of all of the JV Partners is sufficient enough to provide procedures and methods for the successful operation of the Lottery.
2) Questions which indicate that we are involved in an "illegal" operation, whereby politicians and/or police are being "paid off". Obviously, you are not familiar with the "U.S. Foreign Corrupt Practices Act". Your suggestion that we are violating that Act, or acting in any manner which is illegal or corruptive, is not taken well by the management of this company, or for that matter, any of the NRAG Shareholders who have invested in a company that they expect to abide by the law.
Fortunately for NorAm, we have never been indicted or had to fight our way through the court system in order to remain in business. We have not been banned from doing business in any State in the US or any foreign country, nor have we been forced to pay fines as a result of being found guilty of any wrongdoing. You may have us confused with another company, possibly one that you have already invested in.
Your final question states: " I'm still bothered by the fact that the Company has not tried to recover the shares that were issued to PR firms in the past which failed to do the job they were hired to do...". Your assumption of "fact" is anything but a fact. We have, and continue to attempt the collection of the shares that are owed to us.
Our attorneys do not work on a contingency. If you have an attorney(s) that are qualified in SEC matters, and are willing to work on a contingency, we would be most happy to engage them. I, and all of the other shareholders of NorAm are eagerly looking forward to your response on this issue.
We realize that any business venture in the Gaming Industry comes with certain risks, especially those that require us to do business on foreign soil. We have done our homework to the best of our ability, and we feel comfortable in the decisions that we have made.
If you have additional inquiries regarding NorAm, please refer to our Website at www.NoramGaming.com, or research our previous press releases. Future updates on current projects and items of general interest can be found in the Presidents Report on our WebSite.
May you have a Happy and Prosperous 1998.
Sincerely,
George C. Zilba, CEO,
NorAm Gaming and Entertainment Corp. |
