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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