To: Andrew H who wrote (14554 ) 1/12/1999 12:50:00 AM From: Martin E. Frankel Read Replies (1) | Respond to of 44908
Hi Andy, I can understand your concern about the closing of the CCI(CA) deal, but, in reality, it is a closed deal already. If you recall, Rob Gordon modified the original contract between TSIG and CCI(CA) with an addendum quite a few months back giving TSIG the exclusive rights to the MusicCard(tm)... should the audit not meet TSIG's standards... for ten (10) years and renewable every five (5) years thereafter in perpetuity. It now becomes a question, IMO, as to what is most beneficial to TSIG. Granted the old CCI(CA) has existing distributors, but are they possibly going to hurt the major corporate and fund-raising "deals" TSIG is doing? It depends on the price and business structure. It seems clear to me that if these old distributors or dealers remain in that same corporate structure then they would be competing with our own company. Federal law does not allow us to set a minimum selling price for the "Card" to a dealer or distributor (remember when Sony tried suing dealers for selling Sony products below Sony's MSRP... Sony lost). If they were entities such as manufacturer's reps, however, I understand from my attorneys that TSIG can control their minimum selling price. I believe that besides completing an audit satisfactorily, the legal structure of the present and future "sellers" of the "Cards" outside of the direct employ of TSIG (please note that "Cards" is plural) is a consideration being deeply investigated posthaste by management. And don't forget, it is Rob Gordon's and managements' money on the line as well as ours. Don't you think they are as anxious as all of us? But, it must be done right. Be Right!!!.... Sit Tight!!! Best always, Marty