Minutes of Telephone Conference Call Friday April 25, 1997
Between John Collins, Bill Cooper, Erwin Annau, Harold Rapp

1. There is the need at ATG for more prediction of product orders from TradeNet and Top Marketing (Force Products, Sikorsky Books, Laundry Solution). ATG is concerned that it may not be able to supply TradeNet's product needs at some point unless adequate lead time is instituted. Unpredicted activity creates emergency conditions for both companies. It is our belief that in MLM a backorder is highly undesirable- a "kiss of death" according to several other MLM firms. The following are true projections for current products:

2. It may be advisable for TradeNet to re-evaluate its inventory levels and consider increasing them based upon sales successes with new products. This could aid in overcoming lead time issues with ATG and others. ATG geared-up to provide certain production levels of product on a consistent and regular schedule based upon data provided by TradeNet personnel. TradeNet's assistance is needed to stabilize situation. ATG is willing to proceed with a 30 day net arrangement if this would assist TradeNet in this regard. Based upon ATG's understanding of current inventory of laundry globes within TradeNet and at North American Plastic, it appears that a 3 week inventory is available - when contrasted with the 3 1/2 week cycle shown above, it is apparent that supplies are too low. ATG advises that minimum 20 barrels weekly are required for laundry solution at current sales levels for the product. The weekly orders have ceased, and out of the past 7 weeks we will not have delivered any laundry solution to TradeNet for 3 weeks, although it was agreed we would ship weekly. And, it remains unclear if we will ship even this next week upcoming.

3. ATG has applied for a listing on a major exchange. As part of the process, ATG was required to provide financial projections for revenue and earnings over the upcoming 4 months timeframe. ATG made these projections based upon production from our gold mine, ATG Media sales, Force sales, and sales of Ie crystal products, including sales to TradeNet (these projections were based upon our understandings of TradeNet's needs). We are now in a position where non-delivery of 60 barrels of laundry solution to TradeNet could delay our listing on the exchange. It is in everyone's best interests that ATG be listed on the exchange, and if the reason for the slowdown in orders is financial (the unexpected $110,000 UPS freight bill), then ATG will agree to a temporary 30 day net cycle with TradeNet. Just to clarify how a 60 barrel order is pivotal- ATG is on an accounting accrual basis- we realize revenue as soon as product ships. Therefore, an order now is a win/win for both firms, and then we should set a level of product order from this point onwards which works for both firms, say 20 barrels weekly, which could be increased as TradeNet's sales increased (as they undoubtedly will).

4. ATG has purchased (or placed on order) scientific equipment to validate the laundry globe. It is ATG's position that both our firms are in danger unless ATG completes this cycle immediately because the calls, letters, and complaints we are receiving will continue unless we complete the science to support your claims. TradeNet's assistance is needed to expedite this process as was agreed earlier with the stock purchase program. ATG believes and has received confirmation from some of TradeNet's distributors that scientific validation of your laundry globe product provides a valuable sales tool as well as legal protection. With the Force and our Ie crystal this validation is available and indisputable - the products have credibility in the marketplace. However, with the laundry solution, which is not our product, we are behind the "8 ball". We would normally have come-up with the idea, gotten sample globes, filled them with Ie, run them through the washing machines, document tests and results, write a paper on the invention, independently confirm our invention through peer review, and then publish our results. The product would have become sellable and defensible, unassailable by authorities or suppressives in the environment. We are going ahead and purchasing the scientific equipment because we believe both our firms are in danger unless we move quickly and effectively to validate your product.

5. It was ATG's understanding that TradeNet desired to use ATG's Ie crystal in its products to enhance performance (a better product) and to obtain a proprietary product that could not be sold by others. ATG has been informed that the products (shampoo, spot remover, body lotion, soap) under development at TradeNet will not use Ie in them (although the spot remover which was successfully tested did contain Ie). It is apparent that there is not a clear understanding by all parties that it is better and faster to add Ie crystal to an existing product which contains an aqueous base than to re-invent a new product. While it has been stated that TradeNet does not want all of its products to contain ATG's Ie crystal, it must be fully understood that it is ATG's job to get the Ie crystal into as many products as possible. Therefore, it is our intention to create cosmetic and toiletry products (shampoos, body lotion, soap, etc.) which contain Ie crystals. We will also prove in our laboratory that these products are superior to other products in the marketplace which do not contain Ie crystals, and ATG will ensure the public realizes that products containing Ie crystals are more desirable and effective (just as TradeNet's personnel reported that your spot remover performed better using our Ie in its formulation). These new products will be offered for sales to MLM, direct marketing, and retail. We do not want this communication to be misunderstood, but as discussed in this conversation today, your first line of defense in marketing is a trademarked product like Ie crystal. Because there is a possibility we misunderstood or were confused with what Julie McClintock has stated to us about not including the Ie crystal in your products, it should be again stated that ATG understood at the onset of our relationship with TradeNet that the intention was for ATG to develop proprietary products just for TradeNet - products which do contain the Ie crystal. We felt and understood that as a team we could and would all win. It would be out integrity for ATG to not state our position now if that is the case - we must know now what TradeNet intends. As you have found with us, we believe in being forthcoming, honest, not covert.

6. ATG is proceeding quickly with developing a super globe for your Laundry System (globe plus a consumable comprised of liquid Ie for softening) and the Dishwasher System (non-consumable plus consumable enzyme-based product). The investigation process is yielding good data for enzyme products containing Ie crystal which can be marketed by TradeNet. It must be understood that whatever products are finally offered to TradeNet by ATG will undoubtedly work as advertised consistently and predictably they will be based solely on science and proven efficacy so no attacks can be directed at either TradeNet or ATG. In your marketing you can say your first globe was your Model A (Mustang), your super globe is your Model B (Lincoln Continental). It is always ATG's role to continuously improve products and give you a product for tomorrows marketplace, a new globe, Model C (Rolls Royce). ATG will provide testing results for your scientific journal as we proceed along, and you will be able to show the difference in the products from Model A to C as we improve them. As you know with your current globe product ATG duplicated as closely as possible the existing product you were selling as you requested so as to make no product changes. It is a fact, however, that ATG was unable to dilute its Ie crystal product precisely to that low level of your previous product, and your current product supplied with ATG's Ie crystal has almost twice the concentration of your previous product. Now after 7 weeks of work with TradeNet, and after gaining more familiarity with your business and your product needs, ATG feels that you should prepare to market a globe which is 5-10 times more concentrated, a super globe.

7. ATG continues work on the swimming pool regimen for Erwin Annau. The Carefree system could get everyone into trouble - it is doubtful that it will work consistently unless the most stringent pH control and TDS levels are maintained; and it does not negate the need for chlorine or bromine. ATG is leaning at present towards an environmentally friendly combination of products to do the job.

8. It is ATG's understanding that TradNet desired to film a video for Force products. ATG is prepared to undertake this development alongside TradeNet and we recommend that we reach agreement and proceed quickly. Additionally, ATG will offer TradeNet Force ballcaps, Force brochures, and related sales aids through ATG Media - but we need to reach agreement on what is wanted.

9. Top Marketing is reminded that ATG publishes Final Frontier magazine and that the distributors may have an opportunity to offer subscriptions with purchases of products. ATG has reached an agreement with KingWorld to include a subscription to Final Frontier with their new UFO video (their video sales are usually more than a million, the lowest so far at 250,000). ATG feels it could be beneficial if Top Marketing were to also offer subscriptions to Final Frontier. As we discussed previously, the press does not attack the press! As ATG's press gets stronger, that safepoint for both our firms gets stronger. We discussed a free back issue of Final Frontier for a one year new subscription, and if you desire, we can pursue this topic further.

10. This paragraph is further to our conversation and we did not discuss this point. While watching a business news channel last week, I found an interesting discussion on Amway's financials. Amway's largest business today by far is educational materials-books, videos, and tapes. Dr. Lo has written 3 books on the subjects of physics, quantum mechanics, and mathematics in cartoon form similar to KTL (Key to Life Course). Other books are being written on electricity, Ie crystals, and science. These books are vital to understanding these subjects. Most parents have a concern for the education of their children. These books can correct the wrong information in our colleges and universities while applying the study tech and being entertaining, easily understood. These books can be made available exclusively to TradeNet to broaden your scope from environmental to children's edilcation to future well-being. We will be publishing the remaining 7 titles by Bob Sikorsky as well as part of our publishing exparislon, and these too could be available to you.

11. I am delighted that TradeNet's stats are up, and I am pleased and proud to be working with TradeNet. I believe the above summarizes our discussion fairly well, and I look forward to hearing from you Monday or Tuesday on these subjects. Thank you.