EMAIL DETAILS

You did all my work for me! I’ll pull it together and have something for you
to look at when you get in.


Mike Muldoon

Rosemont Seneca Partners, LLC

1010 Wisconsin Ave., NW

Suite 705

Washington, DC 20007

(202) 333-1880

mmuldoon@rosemontseneca.com <eschwerin@obblaw.com>

*P** **Consider the environment before printing this email.***


*From:* Hunter Biden [mailto:hbiden@rosemontseneca.com]
*Sent:* Wednesday, May 26, 2010 1:54 AM
*To:* Michael Muldoon; Eric Schwerin
*Subject:* Fwd: Please review


Mike take a crack in the morning at reshaping Antonio's original letter.
His explanation for its importance in his second email is a start. the
explanation he gives me for why its timely and important is a better letter
to Jennifer then the original letter. I would like to combine the two in
some way. Most important it should not sound hostile or accusatory. It
also shouldn't ask questions that they wont or cant answer at the moment.
Instead it should state the the facts as they are now. Talgo played by the
rules of ATA and was awarded a contract. They devoted enormous time and
resources to the Wisconsin project. A project that will create jobs in the
immediate for an immediate need of Wisconsin's. If the new rules developed
after the TAlgo Wisconsin ATA agreement apply then the consequences are...
We understand that all parties are attempting to find a tenable solution to
the problem and we /Talgo would like to assist in any way to come to some
conclusion that adheres to the spirit of the buy American provisions, while
at the same time not jeopardize the jobs and products that we plan to
produce in the state of Wisconsin and that we estimate will create a total
of XX# of jobs Nationally in the first year and XX# of jobs in years to
come. We are certain that if the 100% buy American provisions were phased
in over time we could reach those goals , etc... Furthermore, the delay and
uncertainty for a company such as ours make it very difficult for us to plan
a path forward. We have worked very hard to assure the 60% provision was
met to letter, and will certainly work just as hard to increase that # over
time. But at this very moment jobs and the delivery of trains promised to
the state of Wisconsin are in jeopardy as we wait in limbo for some
clarification. We are fully aware of the pressure both the Chairman and
other members of Congress are under to reach a 100% buy American rule, and
we welcome the opportunity to develop a manufacturing base in the US that is
capable of that. Right now know rail passenger rail manufacturer in the
world can attain that goal, however. It is our hope that we can be of
service in finding a sensible solution that will allow us to move forward
under the rules we were told applied at the signing of our agreement and
then work towards attaining the higher standard set by the committee in
a time frame that allows for the growth of a US manufacturing base to
achieve it.


Something like that- what do you think?

---------- Forwarded message ----------
From: *Hunter Biden* <hbiden@rosemontseneca.com>
Date: Tue, May 25, 2010 at 6:18 PM
Subject: RE: Please review
To: Antonio Perez <aperez@talgo-inc.com>
Cc: Eric Schwerin <eschwerin@rosemontseneca.com>, Michael Muldoon <
mmuldoon@rosemontseneca.com>, Nora Friend <nfriend@talgo-inc.com>

Understood. We will work on it.


*R. Hunter Biden*

*Rosemont Seneca Partners, LLC*

*1010 Wisconsin Av., NW*

*Suite 705*

*Washington, DC 20007*

*202-333-1880*

*P** **Consider the environment before printing this email.*

This message and any attachments (the "message") are confidential and
intended solely for the addressees. Any unauthorized use or dissemination
is prohibited.


*From:* Antonio Perez [mailto:aperez@talgo-inc.com]
*Sent:* Tuesday, May 25, 2010 6:17 PM
*To:* Hunter Biden
*Cc:* Eric D. Schwerin; Michael Muldoon; Nora Friend
*Subject:* Re: Please review


Thank you Hunter,

In editing the e-mail I want to make you aware that we will have a timing
problem. Talgo will have a brand new facilitiy in Milwaukee, with new hired
personnel, but if we do not get work right away, then we will have to
furlough the personnel and shut down the operation at the beginning of 2012.
There will be a gap of at least one year with no production at all and we
won’t be able to support an operation with no revenues.

We need to explain that companies like Talgo are being discouraged to invest
in the USA and create jobs due to the boom and bust rail policy.

Thanks

Antonio Perez
President & CEO
Cell: +1-202-286-0622

------------------------------

*From: *Hunter Biden <hbiden@rosemontseneca.com>
*Date: *Tue, 25 May 2010 18:04:22 -0400
*To: *Antonio Perez <aperez@talgo-inc.com>
*Cc: *"Eric D. Schwerin" <eschwerin@rosemontseneca.com>, Michael Muldoon <
mmuldoon@rosemontseneca.com>
*Subject: *RE: Please review

Antonio-
We are reviewing and will get back to you with edits tomorrow. My initial
reaction is that you are asking a question that she cannot answer- at least
to your satisfaction. As I said to you last week the Administration and
informed members of Congress understand that 100% but American is a
completely unrealistic hurdle today. Nevertheless, they are faced with the
politics of perception and must tread lightly when formulating a sensible
solution. This is a process that will not be worked out in public. I am
aware that not having definitive answers to the questions you pose is of
little solace to your management and board, but for the time being I am
certain Jennifer or anyone on the hill will have to answer- “100% buy
American means 100% buy American.” (Particularly if they are asked to
respond in a letter that they have no control over the dissemination of.)
All this being said we can edit the letter so that your point is made
without asking them to place themselves in a box.

In the meantime we are reviewing the most current proposal you sent and will
be back to you on that shortly.

Best,
Hunter


*R. Hunter Biden
Rosemont Seneca Partners, LLC
1010 Wisconsin Av., NW
Suite 705
Washington, DC 20007
202-333-1880
**P** **Consider the environment before printing this email.
*This message and any attachments (the "message") are confidential and
intended solely for the addressees. Any unauthorized use or dissemination
is prohibited.


*From:* Antonio Perez [mailto:aperez@talgo-inc.com <aperez@talgo-inc.com>]
*Sent:* Tuesday, May 25, 2010 1:07 AM
*To:* Hunter Biden
*Cc:* Nora Friend; Eric D. Schwerin
*Subject:* Please review

Hunter,

Can you please quickly review the e-mail below that I want to send Jennifer
Esposito, Staff Director of Congressman Oberstar?


Dear Jennifer,

I left you a voice message last week. The purpose of that voice message and
of this e-mail is to get clarification on the correct interpretation of the
100% requirement that both congressman Oberstar and the Administration are
constantly referring to in public.

Talgo is the first train manufacturer that has been awarded a contract to
manufacture trains using ARRA funds granted through the FTA. That agency
requires that 60% of the components (Air conditioning equipment, doors,
seats, etc) be manufactured in the USA. In order for a component to qualify
as built in the USA it has to meet two tests: (i) that the final assembly
takes place in the USA and (ii) that 60% of the components are manufactured
in the USA. These guidelines have been used for years by the manufacturers
of trains and by the vendors of components and allows to buy build trains
using parts that are not built in the USA, which in many cases cannot be
found in the USA.

Now an unclear request of 100% Buy America is required from manufacturers.
If the guidelines of the FTA are applicable to the 100% request, then 100%
of the components and 100% of the subcomponents should be built in the USA.
The vendors we are dealing with tell us that such goal in unattainable
because it would, in essence mean, that each bolt, screw, etc. would have to
be made in the US. Everyone understands a lot of components of parts
manufactured in the US come from other countries like China etc. .

Talgo takes its commitments very seriously. Therefore , we are seeking
clarification on the 100% request to determine if it is worth to stay in a
market that has funds available but that will never be used due to the
conditions set to grant them.

Since Congressman Oberstar was the author of the ARRA language, we are
hoping that the intent of the language will be clarified. We a quick
response because various states are asking us whether or not we can meet the
ARRA requirement but we don't know what 100% really means as vendors don't
even built parts that are 100% American.

Could it mean that if the components are "mostly American" as in 80%, then
it is considered to pass the 100% Buy America.

Please clarify with Mr. Oberstar. We did not hear back about Talgo's
willingness to establish a "US Training Work Force" either from Mr.
Oberstar.

I look forward to hearing from you or speaking with Mr. Oberstar on the
phone again as soon as possible for him.


Thank you

Antonio Perez
President & CEO
Cell: +1-202-286-0622


--
R. Hunter Biden
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-188