The services of En. Sukumaran Vanugopal ("the Claimant") with Innoprise Corporation Sdn. Bhd. ("the Company") incorporated by Yayasan Sabah ("YS") under the corporatisation of commercial operations of Yayasan Sabah (Ex : CL-2), was terminated with effect from 16 December 1989, by a letter signed by Datuk Dr. Jeffrey G. Kitingan Executive Chairman of the Company, stating the Claimant's services were no longer required and as such his contract of employment due to expire on 16 December 1989 will not be renewed.

The letter in question dated 18 December 1989 (Ex: CL-8 Enc: 7) states:

After due consideration, the Management has decided that your services is no longer required. In exercise of the discretion vested in me as Managing Director of the Company under Clause 17 of Your Letter of Appointment dated 25 November 1986, I hereby inform you that your present contract contained in the said Letter of Appointment with the Yayasan Sabah Group of wholly Owned Subsidiary Companies will not be renewed upon its expiration on 16 December 1989.

Yours faithfully, Yayasan Sabah Group of Wholly Owned Subsidiary Companies.

(signed) ............................................... (Datuk Dr. Jeffrey