Exhibit Security Sit

Exhibit Security Sit

We have the original emails

Friday, December 05, 2003 7:08 AM

Dan Layton and I made the decision today to keep IMCO (and our guys) inside  the green zone until we can get a security manager on the ground who can hire  local security to escort our folks.  This is based primarily on the shooting  incident yesterday but also on the recent increase in attacks on civilian  contractors.

Tim is working out a plan to conduct training, etc. until  we can get them back in the field.

Pete

Sunday, November 23, 2003 11:08 AM

Dan Layton and Emmanual are back from Erbil having finished all the contract  extensions.  The CPA Oil for Food folks are now having trouble accessing  their “GAP” funding that is needed to pay all the NGO’s.  Dan and Emmanual will work this while here. Emmanual is doing great and Dan Layton wants him  to stay on in 2004.  Emmanual wants to stay on also.

It now looks like  the entire RMAC North will be contracted folks (Personal Service Contracts)  as Dan Layton and Siraj Barzani, NMAA Director General really want the former  UN (national) folks to run the RMAC.  Unfortunately, the former UN folks  won’t work for the RMAC because of the low Min of Planning salaries.  As of  today, no one has been hired for the RMAC North and the NMAA just took over  the entire operation there.  Dan Bowen’s folks (nationals) in the RMAC south,  who were just hired, still don’t have a pay scale even though they  were hired as Min of Planning employees.  Siraj Barzani is now getting  cold feet about his job because his UN salary ended on Friday and he  realizes he can’t make ends meet with his government salary.  What this means  is that the expats (the few there are) are carrying the load for the  entire NMAA right now.

I sent a separate e-mail on Steve Wilson  regarding his extension in the north.  He wants to make a decision about his  future employment by Wed, 26 Nov so please see that e-mail.

The  security situation is getting worse.  Civilians are clearly being targeted  more and more so I believe it is time to hire local security guys to travel  with us when we leave the green zone.  I’ve tried to contact Jesse Johnson  and will try again tomorrow (Mon).  Dan Bowen is traveling to Kuwait City  tomorrow so I may ask him to try to track Jesse down to help me arrange  something.  I will get my requirements for the security guys written down by  tomorrow.  As you know, we need a professional security manager to help  manage our security issues ASAP so I hope you find someone soon.  I’m sad to  report that even the green zone is becoming less and less safe with the  mortar and rocket attacks. Because of the mortar/rocket attacks we have  everyone living under a concrete roof to provide protection.  A DHL plane was  hit by a SAM-7 so Royal Jordanian has suspended their flights.  The rumor is  that they (Royal Jordanian) will start again in December (after Eid) but  based on the way they fly in here (normal approach with no counter measures),  I don’t know how safe it is to fly on that plane.  Again, a  professional security guy will help Tim, Dave, and me make these kind of  decisions.

Chris Timmer is in Kuwait waiting on the MDD which were due  in today (Sun).  No word yet on their status.  The MDD were originally  supposed to be here on Wed or Thur of last week so I hope there is no more  delay.

When talking to Dick about the positions we will fill after 1  Jan, please make sure we negotiate periodic R & R breaks as the stress  level here and the inability to go anywhere but work and home is too much  over long periods of time.  Please simply plant the seed with Dick as Tim  and I are discussing options and I want to talk to Dave McCracken before  I pass on our recommendations.

Thanks, Pete

Saturday, November 22, 2003 6:26 AM

Tim, As I’m sure you’ve heard, the DHL plane coming into Baghdad was  hit today by a SAM 7.  This definately affects the way we bring folks in  and out of Iraq.  We need to talk about this so give it some thought and  we will get together later.

I think we need to consider hiring armed  security guys to travel with the RONCO expats (either in a separate vehicle  or in the same vehicle). I’m not talking about ex-special forces guys but  rather, armed locals. Dan Bowen has two Iraqi’s armed with AK-47′s who travel  with him everywhere he goes.  It becomes another badge problem but lets  think about it.  I’m thinking that we have them live in one of the rooms  at your place (outside of the main house) so they can guard it at night  and travel with you guys during the day.  We may need to do the same for  all of the RONCO expats in the country.  Again, I’m thinking out loud but  it gives you something to think about before we meet.  Please feel free  to talk to your folks before we get together.

Thanks, Pete

Sent: Thursday, November 20, 2003 10:27 AM Subject: FW: THREAT UPDATE

All, Another civilian convoy attacked yesterday.  The number of attacks against Coalition Hard Targets (i.e. military or similar) is decreasing. While the number of attacks against soft targets is increasing significantly.  One contractor convoy (two vehicles) was attacked from the rear by an insurgent piuck-up truck causing the rear convoy vehicle to turn off the road and flip over.  The attackers then got out of the truck and were going to finish off the contractors before the other (lead) vehicle turned around and engaged the insurgents causing them to flee.  The contractors believe that without the other truck returning to the scene, the persons in the truck which flipped over would have been killed assignation style.

There is a threat of ambushes/ attacks against civilian coalition vehicles on the Abuyb Garayah Expressway in Baghdad (I have no idea if that is spelled correctly or where it is).

Regards,

David Foldy

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