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So, we need to make some decisions on these potential clients of Transatlantic's tomorrow. From my talks with Lorenzo today, here is what is on the table.

Iberdrola - upfront $100K, which would be $50K to us. Apparently, the $300K would be paid at the end of the contract regardless of "success". So, that is $200K to us after seven months which works out to approx $28,500 a month.

CAF - The proposal Lorenzo made works out to $15,000 a month to RSP for the first six months all paid up front. Not sure if that is where the CEO of CAF will come in. And then $15,000 a month to RSP after that. With a probable success fee of 1%. But I am pretty sure it will just be the first six months guaranteed.

Talgo - $15,000 a month.

We need to decide whether we can do Talgo vs. CAF. Lorenzo is now pushing that we just do CAF and say No to Talgo.

I am not factoring in the pain in the ass factor of any of the clients. I do think though that CAF may be more work up front. One thing with Talgo is we know them and their issues. They are a pain to deal with but we have the baseline. To do CAF it may require Hunter to go to Spain in the near future and inevitably Lorenzo will manage the relationship and want to show a lot of activity at first. The fact that we will manage the client relationship with Talgo is both a plus and a minus but it will allow us to better control the time we spend on it. Just some thoughts.

Finally, we need to figure out what to do about Ormazabal. I still would like to say that if we drop Talgo we get paid for Ormazabal. To me, even if it is $7500 a month it is important that we feel we are getting some dollars in for doing the work on this.

Let me know your thoughts and let's discuss tomorrow.


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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