Rutledge

"On the return flight to Newfoundland, Jones assumed the deal was dead before it was born. Rutledge was not prepared to accept empty promises. He had told J ones, in effect, that when the $500,000 was deposited in Rutledge’s account, they would talk. Until then, nothing was going to happen. In St. John’s, Jones broke the news to Dobbin, who pondered the situation for a moment, then shrugged and said, “So pay him the half-million out of our operating line,” meaning the million-dollar credit arrangement Sealand had with rp Bank to cover the firm’s day-to-day expenses. Jones protested they couldn't do that. Tp granted the credit to pay for salaries, rent, fuel and other expenses, not to spend it on acquisitions. The bank would never approve giving half of Sealand’s entire line of credit to Rutledge just to open negotiations. Besides, reducing their access to available cash by 50 per cent would leave Sealand in a difficult position when it came to paying its bills. Dobbin’s response was familiar to Jones by now. “Screw the bankers,” he said. “Let’s do it.”"

"Within a few days, Jones was on his way to meet with Rutledge at his firm’s office in Buttonville Airport, northeast of Toronto. Rutledge greeted him warmly, then set the first rule. Before negotiations began for Sealand to acquire his company, Rutledge wanted a guaranteed non-refundable deposit of $500,000. No matter how the negotiations proceeded and whether or not a purchase deal was reached, Rutledge would pocket the $500,000. Rutledge also set a negotiating deadline. If a deal was not reached within ninety days of Rutledge receiving the deposit, discussions would be cut off and Rutledge would retain the half-million dollars."