Re: HCI / Linear 5

We intend to show it to an Afghani client, with your permission, who is looking to invest in a U.S. company or new business. Eric will be his representative so there would be very little direct dealing with him if any. I will not take any action until we get your approval on this one.

From: Will Donaldson [mailto:will@donaldson.net]
Sent: Thursday, February 17, 2011 11:50 AM
To: Haytham Faraj
Subject: Re: HCI / Linear 5

Haytham,

Thanks for making the changes.

Below are 20 accounts to see the video. Please make sure that you limit this to only the folks who can actually make an investment - we're tracking these by name so we can determine who has actually seen this and if it is forwarded to other people. We do NOT want this released outside of that effort. So please track who gets the accounts - and we can send additional accounts if needed.

http://www.linearfive.com/video

puckett001	rifle
puckett002	scope
puckett003	pendleton
puckett004	sword
puckett005	shooter
puckett006	oldtown
puckett007	trolley
puckett008	charthouse
puckett009	austin
puckett010	molly
puckett011	barrett
puckett012	claymore
puckett013	metro
puckett014	crystal
puckett015	money
puckett016	invest
puckett017	fair
puckett018	technical
puckett019	gunner
puckett020	utility

As far as the contract - I am ready to sign and get started! But the only thing I can't seem to find is the "maximum amount we will be charged" (total or monthly) if Puckett & Faraj terminates the contract before we receive funding. When we spoke you mentioned that you would make sure we would be protected with your team. So I think limiting our financial obligations is reasonable.

I totally agree that you should be compensated if we receive funding from 3rd party out of the Puckett & Faraj effort and we will to do that. But if the contract is terminated before we receive funding we'd both be in a lose-lose situation. Can we simply limit this initially to 1 hour per potential investor? And then at that point, we would know if there is enough interest to pursue the continued negotiations.

If we do that with 20 contacts, that is $5,000 - and if it goes outside of that it would only be because we were actually meeting/presenting with the investors. I'd also like net 60 on invoice on contract termination. That won't be applicable if we receive the funding through your effort if the $ is going through your trust account, right? So you know you'll get yout 3% fee that way off the top immediately.

Hate to make this a sticking point but I want to be completely clear about where we are at financially and want to make sure if we get investment from you or anyone else, or not at all, we can still satisfy all obligations.

Thanks again, and if you want or need anything else please let me know.

So here are the only minor issues:

- cap exposure to $5k total or ($2k per month)

- net 60 on invoice if terminated

I am very optimistic about this deal - I think you can find a few interested investors for this deal with a few phone calls/emails, and then we can spend a few hours working to close it - and everyone wins!

Will

----- Original Message -----

From: Haytham Faraj

To: 'Will Donaldson'

Cc: jerry.ray@hardcorpsinc.com

Sent: Thursday, February 17, 2011 10:52 AM

Subject: RE: HCI / Linear 5

Will,

I tried to find the link you spoke of last week where a potential investor can view the video and review documents. I don?t believe I have that link in any of the emails. I briefly reviewed the other documents you sent but also didn?t notice a link, except the link to the company registration information.

Best,

Haytham

From: Will Donaldson [mailto:will@donaldson.net]
Sent: Thursday, February 10, 2011 11:16 AM
To: Haytham Faraj
Cc: jerry.ray@hardcorpsinc.com
Subject: HCI / Linear 5

Haytham,

Great meeting. Attached is the package that we've sent to a few close associates of my partner. I'd suggest that the cover letter by Roy Moffett (minority investor) be replaced by one from your firm or you personally, or just removed altogether. Heck if you have the connections this could be done over a cold beer or phone call - no cover letter necessary.

I'll also send you a list of logins to use for the video so you can track and limit the disclosure. We've required NDA from everyone outside but if they are legal or private equity it is not necessary.

Basic options on table are below. We're more than willing to accept any reasonable offer assuming we keep control and the value of the deal is consistent with the valuations we've been provided.

- $3mm loan with guarantee backed by patent, and 10% interest on the loan with $400k vig

- $8.5mm buy in for 5% equity in the new co.

We'd use funds for growing the company, payback for IP and legal on the deals and also retaining Puckett & Faraj for counsel moving forward.

I'll sign the 3% deal today/tomorrow and we can trigger the consulting agreement and retain you after we get a term sheet - that way there will be plenty of funding for you.

Basically - Puckett & Faraj gets 3% for the introduction, and then your regular fees for any other work to close the deal. I can also give you exclusivity for the closing of the deal as part of this so you can see and have in writing that we want your team involved. We just can't afford your team today.

Make sense?

Thanks again,

Will