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Contract Dispute Resolution.  

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Memo To: Kevin Grant, Director From: Learning Team C CC: Harold Smith, ESQ Date: May 9, 2007 Re: Citizen-Schwarz AG (C-S) Contract Dispute Resolution Last year, when we were awarded the Citizen-Schwarz AG (C-S) contract, we anticipated that upon completion, this would open bigger opportunities for Span Systems. Unfortunately, the opportunity was almost lost as contract disputes began with C-S eight months into the project. The problem stemmed from increasing and changing requirements that were being expected by C-S, coupled with C-S changing project management structure. In addition, Span missed deadlines and product quality was affected. In December, Leon Thur, Chief Negotiator at C-S began threatening a rescission of the contract. We immediately sought the advice of our transactional attorney, Harold Smith. After meeting with Mr. Smith, it was determined that it would be necessary to prepare a defense in the event that C-S would begin proceedings to rescind the contract. We based our defense on the fact that the rescission order...

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