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Hello all

Yesterday as we planned, I had a conversation with Virginia that involved first, our full commitment from all of us to help them to solve their Houston problem and second, the paperwork and payment situation between Transatlantic/ Rosemont & Seneca and CAF

Let me go a little bit extensive in how the conversation went in terms of the fluency so that you guys can capture and consequently make your own opinions.

First thing she told me was that they were all going through a very difficult situation these past days working 16 hours a day because of their Houston problem. It was my understanding that they are very much aware of the precarius situation that Hunter and Eric exposed in the last emails ( Literally told me that if the Houston problem doesn´t get solved then CAF USA would be dead) . She appreciated very much your presence in the friday´s meeting and tried to call both of you guys to say thanks. I took advange of this and told her that if for any reason she could´t reach you that she was more than welcome to contact me at any time in order to transmit any kind of information. She appreciated very much . In this first stage I also mentioned her that all the team was very much involved in the Houston case and paralell to that we were already working hard to find the best candidates to create the best possible consortium for the Florida HSR project together with them, we both agreed that the Houston problem could not interfere with the whole US scope of the company. Again, she appreciated very much the way we were addresing everything.

Now, the second stage of the conversation was obviously focused in all the payments and agreements that we have established in the past. It seems that she wasn´t very familiar with the agreement closed with Andrés and Jesús back in June, so I explained her in not much detail the retainer part of the agreement and the incentive fee. Saying this, she reiterated me her disposition to help us to solve all payments procedures with the accounting department in Spain. What she told me is that normally the CAF spanish branch has a 90 days payment policy to the suppliers and she cited me several situation in which she had to call personally to the department to make payments to certain numbers of american suppliers as the payment had been delayed way to long in time. I recalled her that the spanish payments procedures differ very much from the one in America and is something that needs to be change for the future, she completetely agreed with me. Then, we continued the conversation telling me that in order to achieve all these as soon as posible, the fact of solving the Houston problem would accelerate the process ( She reiterated this twice ). Is then when again I took advantage of this to say that the Houston and Florida work, nothing had to do with the Amtrak project in which we still had a lot of work to do in that field, I anticipated to Virginia that we were also expecting to have a meeting with them to define the new conditions for Houston and Florida. Just to let you know she told me twice that the Houston situation has to be solved from the top... and that by friday everything would be known

She suggested me to talk again next monday to continue with the conversation. She assured me that by then she had something in mind that would help us to solve the situation

Now, what do I read from all this conversation and what steps would I suggest :

1) They are taking advantage of the Houston situation to postpone payments pressuring us to do our best best best. ( I am completely sure that these come from Jesús, Andrés or members of the organization that feel that we didn´t do enough in the Amtrak project ).

2) Virginia and Tomar feel very comfortable with us and they definitively need us, so they will be our great supporter

3) Virginia does not know the details of the agreement that we made with Andrés and Jesus so that give us the opportunity to send her everything written by email and establish with her an understanding of the next steps in order to clarify all the situation

4) When I talk with Virginia again on monday, I would tell her that we are going to be sending her by email the conditions for the Amtrak agreement just to let her know and the next steps related to the Houston and Florida project working agreements

5) I have no doubt that we will get paid , however I think it is going to take longer than I first expected. That is the reason I think we should be sending her an email on monday and then following this arrange a conference call with all of us together with Virginia and Tomar to discuss it

Let me know your thoughts. Best


Abel