Business Memo

To: Team
Subject: New Opportunities with Citizen-Schwarz AG

Span has entered into a bilateral contract with Citizen-Schwarz AG German Bank; they have chosen us because we are a leading software company known for creating programs that satisfy transaction requirements. Currently we are in our eight month working on their transaction software program and are running behind schedule. Due to their change in project management, it has caused us delays on approvals.   To make up for the delay, in haste our software team has tried to complete the requirements; unfortunately, they are not satisfied with our substantial performance as originally agreed to. Luckily Harold Smith pointed out that due to our Internal Escalation Clause in our current contract, Span could avoid revocation of this contract due to renegotiating concerns that have been brought to the table.   This is encouraging because it may prevent Span from losing any future business with Citizen-Schwarz. Through negotiating new considerations of the current contract, Span wants to achieve a win/win situation for both companies.
The important point is that we do not want Citizen-Swartz to believe that we have breached this contract, nor be liable for damages that they may claim. According to our original contract that if for any reason Citizen-Schwarz considers that they need to terminate this agreement, they can do so within seven (7) days via written notice. Span will be entitled to complete payment for the work that has completed. Unfortunately, this does not put us in a very favorable position to do future business with them. Some of the concerns that have been addressed by the two companies are the change in their project management team that has resulted in our delays. To meet requirements we are finding the solutions are going beyond the originally agreed contract preventing Span consequential damages which we do not want to incur if possible.
Our software team is going out of its way to meet the...