J.J. Zand - Page 276

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          "TO WHOM IT MAY CONCERN", Clark confirmed that Diesel Power was             
          its authorized sole distributor in Iran.  In certain respects,              
          this representation is supported by Diesel Power's considerable             
          contact with Clark.  Diesel Power provided quotes for Clark                 
          equipment to local companies and, in one instance, asked a Clark            
          representative to travel to Iran about an order.  In November               
          1974, Mr. Ott, of Clark, sent a letter to Mr. Khalatbari                    
          restating some of the main problems that Diana Zand had mentioned           
          during his recent visit to Teheran.  One of these problems Mr.              
          Ott mentioned involved tax issues:                                          
                    The accrual of commissions in the manufacturing country           
               might be subject to taxation if the governmental tax                   
               authorities have the last word in the pending negotiations.            
               However, a meeting of tax experts has been scheduled in                
               Strasbourg on 7 November 1974 for the purpose of working out           
               a satisfactory solution.                                               
          Diesel Power also notified a Clark German affiliate in 1975 of              
          the change in Diesel Power's organization from a partnership to a           
          "private joint stock company".  Thereafter, when Clark grew                 
          dissatisfied with the level of sales in Iran, Clark canceled the            
          1975 distributor agreement with Diesel Power.  Both Mr.                     
          Khalatbari and I.J. Zand wrote to Clark protesting the                      
          cancellation and insisting that Diesel Power remain Clark's                 
          authorized sole distributor in Iran.  Despite these contacts with           









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