M - confidential information

M, while being a household name in the country, M does not have an experience in the insurance
sector. M is hopeful, that this time, with the expertise of B, it will be able to set up a successful business
operation. M has an extensive network of agents who regularly advertise its financial products to its
retail customers. It is ready to hire more agents and also train them to market the proposed company.

It suggests the set-up of its head office in Mumbai and to limit its business to health insurance alone,
until the company is set up properly and is able to run self-sufficiently. M also recommends initially
restricting to carrying out business in metros. However, since M is unsure of how the insurance market
works, it is willing to follow B’s advice on the manner of expansion of services in the country and the
range of products it can offer its clients.

M is also willing to use its corporate connections to set up business deals with corporate clients and to
build its customer base from there. Since M is contributing both manpower and its connections, it wants
to ensure that it gets a good return on the profits from the business. M seeks to ensure that it plays an
important role in the management decisions of the company.

While M is hopeful of the success of the venture, it wants to ensure that it keeps the option of being
able to terminate relations and continue to handle operations on its own after the passage of a few
years.

M does not have free flow of money and wants to invest as little money as possible in the venture. It
wants to limit its contribution but does not want to dilute its management rights.