The meeting was held in the Guthrie Faculty Lounge. It had been called by VS whose cousin, an employee of Casa Mexicana, had contacted him during the day in order to request ceramic tile samples, manufactured in the PRC, from Transnational. The samples were to consist of a representative selection of earth tones (beige, brown, off-white and ivory) and were to form a matching set for contemporary living room décor, inclusive of wall tiles and floor tiles in Spanish traditional or contemporary designs, VS explained.

Several facts emerged during the ensuing discussion.

• Casa Mexicana is presently buying from Taiwan, which probably serves as an intermediary between the PRC and Casa Mexicana.

• The Purchasing Manager, MP, of Casa Mexicana wants the name of Transnational’s potential supplier.

• The sample tiles would have to be obtained by Transnational without any financial contribution on the part of Casa Mexicana.
• Casa Mexicana is not expecting the samples particularly soon.

Those present discussed the amount of money they would each be willing to risk on air shipment of samples from Fujian to Las Cruces. Each person pledged a sum of $10 for shipping charges, plus $2.50 for necessary telephone calls. The total available is therefore $50. This was thought to be adequate, since the samples themselves are likely to be free of charge, according to ZY.

It was decided that AM would compose a letter requesting samples from G. S. The resulting letter is appended to these minutes. ZY agreed to FAX the original to G. S. and to serve as translator in any ensuing telephone conversation that may become necessary.

Discussion ended on the subject of the tile samples with the observation that scaled-down versions of the actual-size tiles should be shipped in order to maintain sample-costs at minimal levels. However, AM added, the selection of samples should be broad enough to prove attractive to MP during the ensuing Transnational presentation to Casa Mexicana, probably during March 2000. It is important to encourage Casa Mexicana to engage in repeat-purchases from G. S. and to protect the vital interests of Transnational through carefully worded contractual documents, it was stressed. VS confirmed that Casa Mexicana would pay a commission to Transnational, but the amount was not known. AM and ZY emphasized that this amount had to be negotiated, of course, prior to releasing the name and address of G. S. to Casa Mexicana.

AM raised the subject of gemstone sales in Northern Mexico, California and New Mexico. He explained that he had a reliable contact in San Diego who was purchasing gemstones in the 10 to 150 dollar range, having them cut in Tijuana by gem-cutters, and then reselling these same (slightly enhanced) gemstones for thousands of dollars to clients in Northern Mexico and Southern California. The wholesale source of the inexpensive gemstones (blue sapphires, corundum, rubies, and emeralds) was Bangkok, Thailand at such internet sites as http://www.thaigem.com. Interest in the profitability of this initiative was expressed by those present. AM agreed to keep all members updated by e-mail on developments affecting the on-going California operation.

No new information concerning the previously discussed SUBWAY franchise venture was forthcoming.

The meeting adjourned at approximately 8:30PM.

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Enclosure:

Letter to G. S.