Subject: SmartSynch Update
From: "Eric Schwerin" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Michael Muldoon" <[email-masked]>, "Rob Walker" <[email-masked]>
Date: Tue, 9 Nov 2010 17:52:15 -0500

Finally had a good conversation with Matt at SmartSynch.

1) Bill will be paid in full in December.  I told him I'd like an update on a weekly basis and he assured me numerous times that it will not slip past December.   He said the issue is a) they are waiting for this round to close b) they have more business than they have supply and they have spent a lot of money on procuring parts to fulfill these new orders and c) their biggest client, LA, is behind on their payments.

2) He wants to see if we can work on two discreet projects first.  One University (UD) and one utility (perhaps Exelon).  We should come up with a creative proposal on how we want to be compensated for that.  They weren't excited to do percentage of sales, but might look at a flat success fee or perhaps there is a way to get equity or warrants.  I think they (like us) don't want to look at this as a sales relationship and are looking for some creative models.  They would rather not sign a sales agreement but work on a project by project basis and see what works and maybe then go to a more all encompassing model.  I think this works better for us.

3) We talked about the Kenny/Chicago relationship and Rosemont Realty.  I sort of held that out as a carrot, but said we're not ready yet.  Matt was intrigued by Rosemont Realty and also said he has a lot of friends in the commercial space who might be interested in investing.

4) Still interested in Rosemont Solebury investment if they are interested.  I am following up with Devon to see where this is.

Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
[email-masked]
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