We could get a $200k additional fee if we help Cataphora sell their Legal Ops business (“Success Fee” in the term sheet) – and I think Jason Kroll may be the guy who could buy it and roll it into his new company.

FYI attached and below.

Best,

John
------ Forwarded Message
From: John DeLoche <john@bluebird-capital.com>
Date: Wed, 6 Oct 2010 14:46:21 -0700
To: <roysp@cytanet.com.cy>
Subject: Confidential

Roys,

Attached find a proposed term sheet for the bridge financing. For confidentiality reasons, I cannot send the term sheet we are using with the lender, but the attached closely mirrors that term sheet with the major change being the facility has been increased to $2 million verses the $1.2 million contemplated in our existing discussions. I am happy to discuss offline.

I also attach the company’s historical financials for FY March 2009 and 2010, as well as a forward looking cash flow projection. This forward looking projection accounts for the potential distraction of the VP of sales of the legal ops due to the legal ops divestiture process—they should be considered a downside case. These are the financials off which our current bridge discussions are taking place.

Please call me with any questions. I am also available to meet tomorrow afternoon to discuss any of this in more detail.

Best,

John


John DeLoche
Managing Director
Bluebird Capital LLC
415 793 7070 direct
415 373 3878 fax
220 Montgomery Street, #1614
San Francisco, CA 94104
www.bluebird-capital.com


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