Note from Mark Dallara:

This letter is dated 8/14/97, four days before the board meeting at TradeNet where Erwin Annau was browbeaten into submission by his "friends" in the "church" of $cientology. I requested it from the Florida Attorney General's Office in Tampa, Economic Crimes Division, and it is, of course, public record. The investigation into TradeNet is continuing, and I have previously posted both a transcript of that board meeting and a partial inventory of documents which have been subpoenaed by the AG's office and turned over (well, most of them) by TradeNet.

Comments by me follow the text of the letter. Asterisks (*) denote words or phrases which are underlined in the letter.

American Technologies Group, Inc.

August 14, 1997


Dear Lynn,

I received your letter of today, and as we discussed yesterday, David is no longer discussing the situation with TradeNet.

Let me address your points.

1. The Super Globe product and its trademark is owned by TradeNet.

2. The statement was and is, "The *old* product was unable to perform in the laboratory as promoted. You may, after 24 hours immersion of that product, even with I.E. in it, not see enough crystals in the water to create any significant effect.

The new product, when compared to *water*, does work better in the cleaning process than plain water, however, in order for you to have a product that works as well as competing products, you must use the full system. You could, of course, use just the booster in larger quantities of liquid per wash."

3. I am not aware of David having any personal viewpoints on Jennifer. I am aware of his viewpoint that the "scene" at TradeNet was created. The owners are responsible for the condition. Plain and simple. David is, as we discussed, no longer speaking to others about TradeNet in any disparaging way.

*Force Manual*

I can assure you that I never saw the piece in question. It is a requirement I sign off, and Harold, as well as David. David states he questioned the incorrect copyright the minute he saw the piece. I am rather disappointed by the attitude here. Fact. I have made it clear to Bill and Erwin in writing and during various conversations that *NO EMISSION CLAIMS OF ANY TYPE ARE TO BE MADE FOR THE FORCE*. This has been well understood and agreed to. The responsibility for the promotion belongs to whom? All I see is an effort to shift responsibility. This claim places TradeNet at risk. It can be used to discredit our product, The Force and ATG. I am not happy with this at all and if Brendon did not understand, why not? Didn't Erwin or Bill Cooper also see the material?

The following is my position right now.

1. The Super Globe product is TradeNet's.

2. All detergent products sold by TradeNet, under TradeNet's trademark and copyright, belong to TradeNet. *ATG will sell detergents to other companies.* Where TradeNet does not elect to sell a product developed, we may give exclusive rights to others to sell same.

3. ATG has trust in Lynn Irons. We do not have trust in Erwin, Bill or Alberto at this time. As such, we will not make this statement about confidence in management and will refrain from any public utterance about any of them. We have stated we are hopeful that Lynn can pull it off and we are supportive of his efforts. Brian Andrus is aware of our position.

4. Upon checking my notes, I agreed to 30-60 days. I believe we need to revisit this. Non-payment on our account with TradeNet has caused significant problems for us, as we have had to pay cash in order to get products to you. Our ability to provide you product at rock bottom prices was made possible by a guarantee of cash flow. I have, as a matter of business, as I have already mentioned to you, opened up extensive negotiations with others to sell The Force manufacturing rights. The inclusion, or not, of TradeNet, as a buyer of product, could have an impact on these negotiations. We can discuss this further.

5. Lynn, do not make statements that David or any other staff have been permitted to publicly speak in a disparaging manner. I expected more from you. I was not aware of the communications until after they occurred. I also believe David when he says he was applying the ethics gradient with other Church members. David has been instructed to cease such communications and has stated clearly that he is unwilling to continue to flow power to any of the three owners. As additional information, David was scheduled to speak at two upcoming TradeNet events and he has canceled his appearance at these events and should not be scheduled for any more.

I want to make this very clear to you Lynn.

We have to ensure that our company survives, thrives, flourishes and prospers. We have to ensure that our vision and mission is achieved. We are and will succeed.

If the association with TradeNet is any way threatens that reality, I will terminate all association. The chaos and confusion, out-ethics and dangerous situations belong with TradeNet. We have never in our history created such a situation and I would never do so.

It takes a great deal to reestablish trust and confidence and that has to be done with distributors, your own public, and here at ATG. I then have ensure this confidence is felt internally here at ATG. Unfortunately, Harold, David, Yin, Mike and others who have been on the front lines fighting the battles and attacks associated with TradeNet are disillusioned and less and less willing to flow power. They will take my lead. However, broken promises, non-payment for product and services and broken agreements, leave us questioning the wisdom of the association.

Will we provide product to TradeNet? Yes, on a cash basis. I feel TradeNet should drop The Force and focus on the laundry products, as we discussed.

The area of automotive products is highly regulated, full of hype and closely monitored by various state and federal regulators. I do not see the sense in TradeNet continuing the product. Factually, your company has become recognized as a leader in the gargantuan effort of removing harmful detergents. You scratched the tip of the iceberg with the old product. It is my opinion that you should focus on your successful actions and continue the campaign to replace these harmful detergents. Once, or if, you gain acceptance for your Super Globe System, you will easily out-perform the old highest ever and will have your hands full meeting demands.

If you have any more questions, please get back to me.


John Collins

p.s. A good example. We were promised $50,000 by wire today. It did not arrive.

The "David" referred to in the letter is most likely David Gann, former director of marketing. On December 4, 1997, ATG announced in a press release that Gann had resigned from the board, and was replaced at ATG by Jim Nicastro.

Harold [Rapp] is COO of ATG, and was previously on the advisory board as a technical consultant.
[Shui-] Yin [Lo] is the director of R&D. "Mike" is probably Michael Kobrin.

It's interesting that Collins expresses explict "trust" in Lynn Irons, and also mentions Brian Andrus. Irons, I'm told, has done two stints in the RPF, and I'm working under the assumption that he is OSA. Andrus, of course, is former a former Guardian's Office stooge who appears prominently in the Snow White stipulation of evidence, so it's a safe bet that he is also OSA.

Keep in mind, though, that this information is history. According to the AG's office, Irons and Andrus are long gone from the TradeNet scene, and Bill Cooper is holding the bag at the moment. Collins himself was succeeded as CEO by Lawrence J. Brady, and Gann, of course, was replaced by Nicastro. So there are several months between the dialogue we have here and the current situation, with only a few pieces of the puzzle.