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Talked to Jim Kavanaugh today. Got some long sob story about how someone wanted to acquire them, they had no cash but were waiting to be acquired and then they got left at the altar. They were able to get a bridge loan but seem to be in no better shape than before (have laid people off, etc.). Said they had a payment plan approved for us. I told him not to worry about it - we didn't want the pressure of having to set up meetings and going in fits and starts. I told him let's keep our percentage of sales agreement and we'll keep them in mind if we run into people who need their services but otherwise it really didn't work out how either or us envisioned it. He seemed fine. I also told him I was disappointed that he wasn't more forthcoming of the reality of their financial woes over the past 6-9 months, I understood that some of it was confidential, but he could have been a little more direct.


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com
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