20090227 Email From Stapleton

Dr Mario Koppers Subject:

FW: My Edwafin Blogs

From: Patrick Stapleton Sent: 27 February 2009 01:03 PM To: Cheryl Friday Subject: RE: My Edwafin Blogs Dear Dr Koppers, thank you for your email. Sorry I did not realize that you had filled in the necessary release forms. It is not my intention to irritate you or mislead you. But we, like most businesses are in a serious cash flow crisis, due to no fault of our own. To get to the crux of the problem I am going to go straight to your second last paragraph. “I acknowledge the fact that in terms of clause 12.2 of the prospectus at that time Edwafin owes you 200k plus your interest. Yes we have a court ruling that could contest it, but to be bluntly honest the money is due to you. We are not able to refund it right now and in doing our sums and looking at our projections, the business will pull straight by the end of May 2009. I therefore st propose that we undertake to pay you on 31 May 2009 in full and that you cut us some slack until then”. My sincere apologies to you. st

I ask that you do not facebook or blog us unless - we renege on our 31 May commitment, because I believe that by following your stated intentions you could also be hurting your own investment. Give us some space to perform, we are an honorable company, and will do our best. I see that you also have complaints against MTN, Virgin group, GO –GO Convert, Jacklin products and Vodacom as well. In answer to your question we would be contravening the Companies act and will have to contact CIPRO. (It is not a secret) Kind regards,

From: Cheryl Friday Sent: 27 February 2009 12:34 To: Patrick Stapleton Subject: FW: My Edwafin Blogs

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Cheryl Friday Office Manager (Chairman's Office) Edwafin Group Tel: +27 (031) 765 4570 [Ext. 205] Fax: +27 (031) 765 4842 Vax: 0865599416

Email : [email protected] Web: www.edwafin.com – CHECK OUT OUR NEW WEBSITE FOR OUR LATEST NEWS


please don't print this e-mail unless you really need to! From: Dr Mario Koppers [mailto:[email protected]] Sent: 27 February 2009 09:47 AM To: Patrick Stapleton; Cheryl Friday Subject: My Edwafin Blogs

Dear Mr Stapleton and Ms Friday, Thank you for your email that arrived here just about 1 hour ago. It is not clear to whom I should address my answer, so I sent you both a copy. I also appreciate your enquiries about my wellbeing, and all is well here, although a bit hectic. I trust that you are equally well and that you are equally busy as that would be a good sign in these times. But before my email becomes as lengthy as yours, let me get to the point – it is always pleasing to receive long emails but not when the contents thereof is intended to patronize, threaten and generally maim the psyche. Although I am slightly irritated by the tone of your letter, I can’t help but to be amused by the naïve attempts to intimidate me and to overwhelm me with information that has no bearing on my particular situation. I’ll state it succinctly: 1. Yes, I am in pursuit of spiritual reality and knowledge of life in general. That does not make me a total ignoramus in other spheres of life. It also does not mean that I don’t have access to resources who can and are willing to share their expertise in business and the law with me. 2. No, I am not a reporter or journalist by any means, and I never professed to be in any writing to you or anybody else. I have a brain that can contemplate though, and that allows me to think about iniquities in life. 3. By my intended blog, I have not presumed to make any attempts at reporting about your company as an business entity, whether it is successful or not or whether it may be in trouble or not. The blog is intended to tell the story as I am experiencing it, and how Edwafin and its personae handle the issues in respect of my situation. If other individuals find resonance with my experience and want to participate, so be it. The fact that I am telling my story should be clear if you look at the pages that are up at this stage at www.edwafinexperience.blogspot.com. (Note this blog is currently private and only people I direct to the site will have access to its content) 4. The Facebook “blog” is intended for those who are in a similar situations as I find myself in. The idea is that you will find it more difficult to try and bully a group standing together than a single person as you did tonight with your peculiar email. I say peculiar, and I will tell you below. a. I am not interested in your balance sheets of the last years – that is not my issue and has not been from the beginning b. I do not need to view your CCTV, SAPS personnel, servers, IT department, HR Department, in house graphics, marketing and advertising departments. c. You also mention deLoittes trained CFO, life presentations by CEOs, touring the motor vehicle factory. (As an aside you are the umpteenth person to send me a DVD of the vehicle) d. I understand that you have lawyers, inside and outside, some with extreme power, and that you have a lot of money to pay them. 2

5. Of course you are not a Mickey mouse organization, and I have never thought so. I will address this again a few lines further down. 6. Of course you were, until this crisis, a strong company, and I’m sure you will pull through it – no question. 7. Now this one is hilarious: Since when did I make myself an expert on Edwafin? Just because I start a blog about my experience with Edwafin, does not mean I hold myself to be an expert. I am an expert – barely – of my own affairs and it is within my full right to write about it. Please go and read what I have said – fully supported by as many documents as possible before you make such preposterous statements and insinuations. 8. Then you address my spiritual interests. Do you actually know what spiritual means, what do you mean by my higher power – it is not to be found in the lines of your letter I think. You actually stoop to spiritual blackmail. I am not the one at fault here; you are the perpetrators of magic mirrors and I am the one you are trying to bedazzle with plenty of haziness and inapplicable information. Perhaps one day we can sit together and discuss higher power spirituality, responsibility for one’s own reality, and general participation in the sincerity of life. 9. NOTE - Ms Cowan’s requirement: The said forms (CM42), as well as debenture certificates were delivered to your offices three weeks ago she even sent me a note after two weeks with the same kind of story that you are giving me. Didn’t you know that? Why I am agitated about the matter is that may request for the return of my capital has been fobbed off. You did not even have the decency to respond to letters that my attorney sent you. Do you find it strange if one associates that kind of behaviour with a Mickey Mouse organization, or are you simply to arrogant towards your investors – it seems like it. And now we come to the crux of the matter which makes all of the above essentially besides the point. If you only read the following then we will make some headway. Today I coincidentally managed to get hold of proper copies of the prospectuses that are applicable to my debenture issue. For once I could actually read the clauses that pertain to the matter under discussion. You don’t seem to know them so I will briefly quote them: Clause 12 EVENTS OF DEFAULT 12.1 An Event of default shall occur if 12.1.1 – 12.1.3 you can go and read for yourself 12.1.4 the issuer breaches any of its material obligations or undertakings of the terms of the Debenture/s and fails to remedy such breach (if capable of remedy) within 15 (fifteen) Business days of receipt of written notice from the Debenture holder requiring remedy thereof, “Materials”, means an obligation or undertaking which goes to the root of the terms of the Debenture. 12.1.5 – 12.1.8 you can read 12.2 On the happening of an Event of Default the Debenture Holder may by written notice to the issuer demand repayment of the Principal Amount of the Debenture together with accrued interest to the date of payment, in which event such amounts shall be immediately due and payable by the issuer to the Debenture Holder within 30 days after receipt of written notice, without prejudice to any of its other rights in law including, without limitation, its right to damages. It is very tiring to have to type that all out, but you seemingly don’t have a copy – I’ll gladly send you one. Obviously, I have discussed this matter with my own friends and old colleagues from my UNISA days, and let me sum up the clause as it pertains to me: a. Clause 12.1.4. Edwafin (the issuer) breached its obligations and has now for the third month been unable to remedy the matter within 15 business days, since I wrote my first note to Mr Stapleton expressing my concern and asking for the money. If you have any contradictory opinion about this, please let me know. Go to the blog I mentioned above, and you can read the documents. b. Clause 12.2. I have now one various occasions requested my capital (plus interest) and the amount has not been paid immediately within the 30 days stipulated. c. Further: I reserve the right to bring a claim against you (Edwafin) for damages of various natures as well as costs. d. Nowhere in the whole prospectus does it mention that I have to wait for a board meeting; or a government permission. In fact, you cleverly do not mention the Government body, but I shall endeavour to discover that tomorrow. e. As far as my attorney and I are concerned, the money no longer belongs to you, and is being held illegally (fraud? I shall investigate) 3

f.

You are now investing capital, that no longer falls under you jurisdiction into enterprises and at my risk. (Perhaps also fraud – I shall investigate) The advocate you quote in the high court did not have to deal with a clause such as 12.2. Again you are trying to blow smoke in my face. The point of it all is, is that in terms of our agreement, I have certain rights which your are blithely ignoring. At the same time you are treating me with arrogance and disdain. Let me point out again: I am not the villain as you are trying to intimate, with insinuation about the way I treat other Unit trusts, etc. Then you have the gall to tell me that you will gladly pay me when I adhere to your aforementioned rules. Lady/Gentleman those rules are not in the prospectus and that was the basis on which I participated in your programme. If I feel tomorrow, like I feel now, I would open up both blogs early in the morning and inform my mailing list likewise. But I will keep to my word. Please do not confuse my mostly mellow attitude as one without resolve. In my previous email I made a surreptitious statement – I am addressing your last paragraph here, you know about trying to get out of stone. Let me put it more plainly: Acknowledge the fact that my money is due to me, even though you are not able to refund it now. Also let me know when the money will probably be refunded. Just don’t start with fictitious rules that I need to accept before you will concede to paying me. That is ridiculous, and that is all that I’m interested in. I know you have a decent, progressive company. My concern is, however, the rules as was explained to me when I joined the game. Depending on how much I progress tomorrow your email and my response will also be posted on the blog tomorrow. Reminder: read the blog from the bottom up – first entries are at the bottom. Thanks for irritating me no end, bless you both, Mario Koppers

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