Developers launch anti-Phorm 'noise' tool

Don't trust this man -- Kent.Ertugrul, Founder and CEO of Phorm
Hello,

Let me introduce myself. I have been Phorm's consultant in Korea for past 2 years. I worked hard to make a large Korean ISP to test Phorm's system beating their arch rival from the US, Nebuad.

Kent Ertugrul, CEO and Founder of Phorm, established Phorm Korea office, hired a local manager, introduced by me, and promptly fired me. I think Phorm is about to run out of cash, and Kent is trying to save as much cash as possible.

However, I think it is unethical to cut me off as soon as they have their foot in the door of a Korean ISP. However, I think it is up to them and they can do whatever they see fit with their fund. What really made me angry was what happened after Kent called me in Jan. and told me that he is going to fire me.

I am attaching a couple of email he and I exchanged since that time:

--quote--

---- Original Message -----
From: 주동직
To: Kent Ertugrul

Sent: Monday, March 09, 2009 8:13 AM
Subject: Re: Jik Chu Termination
Second Request

Please send your courier service receipt of the Termination Notice to

Jik Chu
8F, Kric B/d,
#80 Susong-dong,Jongro-ku,
Seoul110-733
Korea

or,

forward (not copied or attached) your Jan., 22nd. 2009 email to me.

If I receive either of above items, I will consider the matter closed.

best,
----- Original Message -----
From: 주동직
To: Kent Ertugrul

Sent: Wednesday, March 04, 2009 8:59 AM
Subject: Re: Jik Chu Termination


Kent,

I have shown email exchanges below to my lawyer.

He said in your email:

From: Kent Ertugrul
Sent: 22 January 2009 15:32
To: Jik T. Chu (jtchu@songa.co.kr)
Subject:

does not show date of the week (Thursday) on the
Sent: 22 January 2009 15:32-- line, as most of forwarded email show,
and it does not look like the original message was forwarded but rather copied and attached.

The lawyer asked me to ask you that you forward original copy of above email, and send to us either receipt, or undelivered receipt of the hardcopy of the Termination Notice, to the wrong address.

best,

----- Original Message -----
From: 주동직
To: Kent Ertugrul

Sent: Wednesday, March 04, 2009 6:33 AM
Subject: Re: Jik Chu Termination


Kent,

Jik Chu
8F, Kric B/d,
#80 Susong-dong,Jongro-ku,
Seoul110-733
Korea

I have moved from above address, 2 years ago, to which you said you sent hard copy of the Termination Notice.

My current address, as appearing in the Consulting Agreement signed by me on May 1st, 2008, and counter signed by Mr. Vahidi on May 27th., 2008, is:

Hyosung 12-102
Banpo 591-1
Seoul, Korea 137-040

Please resend the Termination Notice and any future agreements to above address.

My email inbox has no record of receiving your Jan. 22nd., 2009 email attached to your March 4th.,2009 email below.

If your proposed, new "disparagement" agreement is offering shares in the Phorm, Inc., I decline, as I have no interest in receiving those shares.

I will give you my last "advice":

To a Korean businessman, straight talk and building trust are most important.

I wish you good luck in your future endeavor.

all the best,
----- Original Message -----
From: Kent Ertugrul
To: jtchu@songa.co.kr
Sent: Wednesday, March 04, 2009 12:08 AM
Subject: Jik Chu Termination


Dear Jik,

In accordance with the Termination Clause in the Consulting Agreement, we terminated your employment and consulting arrangement with us via written notice on 22nd January, 2009 per the email below. The same notice was sent to you via hard copy to:

Jik Chu
8F, Kric B/d,
#80 Susong-dong,Jongro-ku,
Seoul110-733
Korea

Pursuant to this note, your arrangement with the Company was terminated as of that date and, consequently, we do not owe you for any services or expenses incurred subsequent to 22 January 2009. I have been informed that your November-December 2008 expenses have been paid.

I am very sorry that I was unable to meet with you on my last trip but since I hadn’t heard from you following our official notice of your cancelled contract, I incorrectly assumed that you did not wish to remain in contact. I would however, like to reiterate that I have the highest regard for you and would very much be interested in keeping in touch, including a drink the next time I am in Seoul.


Best regards,

Kent
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
From: Kent Ertugrul
Sent: 22 January 2009 15:32
To: Jik T. Chu (jtchu@songa.co.kr)
Subject:

Hi Jik,

I’m sorry for the delay in getting back to you. I wanted to let you know that after further deliberation we have come to the conclusion that we will need to terminate our advisor relationship with you per our earlier conversation. While we’re not in a position keep you on as an advisor, we are willing to provide you with the following equity opportunities that I outlined on the phone.

The agreement setting forth the above described terms will also include a release and mutual non-disparagement clause. The non-disparagement clause will provide for the termination of our agreement to provide you with any shares in the event you speak negatively about Phorm. We will send you a draft of the agreement shortly.

While we’re not obligated to offer you these benefits, we are doing so in recognition of your efforts to-date. We greatly appreciate your commitment to Phorm and look forward to jointly reaping the benefits of our future success.

Thank you again and I look forward to meeting up in person on my next visit to Seoul.

Regards,

Kent
Kent Ertugrul
Founder & CEO
Phorm, Inc.
London M: +44 (0)7788 718 770
New York M: +1 646-709-4800

privacy.phorm.com...




----- Original Message -----

From: 주동직
To: kent.ertugrul@phorm.com

Sent: Friday, February 27, 2009 6:44 PM
Subject: Termination -- Jik T. Chu


Hi Kent,



Since you called me earlier in Jan., and informed me your wish to terminate my service, after some discussion, you asked me to write you an email, which I did. I have not received any reply to date.



I wrote, if you recall, that I have a special event in Phorm's behave for the ISP scheduled in March; and if no positive outcome results from such effort I would leave Phorm on my own cognizance.



I learnt from Dr. Choi, Dong Hoon that you visited Seoul earlier this week, but missed seeing me due to your busy schedule. It was especially disappointing since it should have given both of chance to sit down, even for a moment, and discuss termination of my service. To me, it is a simple business courtesy.



I don't want to be left feeling like leaving wash-room without washing hand. I rather make a clean break if we must, like good businessmen.



I have looked into the Termination clause in the Consulting Agreement:



-- Quote --



5. Term. This Agreement shall commence on the Effective Date and continue until terminated in accordance with this Section (the “Term”). The parties agree that either the Company or Consultant through written notice may terminate Consultant's engagement under this Agreement at any time for any reason or for no reason. The Company and Consultant agree that Consultant is an “at will” consultant and upon termination of this Agreement, the Company shall have no further obligation to Consultant, other than to pay Consultant for all accrued and unpaid compensation and expenses.



-- end of Quote --



Please consider this email as the written notice by me to terminate the Consulting Agreement as of Feb. 28th., 2009.



I'd expect my pending invoices for the service provided for Feb. 2009 and expenses occurred in Nov. - Dec., 2008 to be paid immediately according to the Clause, in red above in "Terms".



I forego all of my vested equity position in Phorm, Inc.



I will immediately start informing my contacts in the ISPs, and the party who is organizing the special even with the ISP that I have terminated my service with Phorm, so there shall be no confusion.







all the best,



jik


--end of quote--


It is obvious that Kent is trying to avoid paying the consulting fee for Feb., which is due if the Consulting Agreement is terminated on Feb. 28th., as I wrote on Feb. 27th. Kent wrote to me in March saying that he wrote to me on termination in Jan., and a hard copy was sent. I have received none. Therefore, asked Kent to send either courier receipt of the hard copy of the Termination notice, or forward the email he said he sent in Jan. To date, I have not heard from him. How long does it take to forward an email you have previously sent?

It seems that he created the email termination notice he said he sent to me in Jan. and attached it to his email to me in March. The Sent: line does not show the date of the week which always appear on forwarded messages. It is shocking if Kent, CEO of Phorm, stooped that low to forge an email to save a small amount of cash. He recently fired most this board members and CEO of the Phorm, US, along with 90+ of his staff in the US. He also fired his COO in UK and CFO in UK. I think he is really desperate, and only thing he could think of now is his own survival.

But I really think that in business, straight talk and mutual trust are more important than simple business success and failure, especially in Korea.

Well, I think I rambled too long. But I spent the time to write this piece to alert people who are working for Kent in UK and US to be aware of this man's true nature, and also alert those Korean who will come in contact with him that he is not to be trusted.

I will appreciate if you find time to post it.

all the best,
Posted by jik T. Chu on Friday, March 20 2009 02:43 PM