Unassociated Document


    EXHIBIT
10.1

    3 March
2009

    


    To Our
Valued Shareholders:

    


    I want to
take this opportunity to thank you for your investment in Simtrol and update you
with regard to the exciting progress we are making toward realizing our goal to
make our company a profitable success and create shareholder value. Most of the
communication you have seen from us over the past several months has centered on
our efforts to build a high performance team with the appropriate skill and
experience to capitalize on Simtrol’s market opportunity. That team is in place
and is working well together.

    


    Our
strategy at this time is to focus on the education market. The classroom of the
21st
century employs numerous devices, including interactive whiteboards, projectors,
computers, DVD players, document cameras, monitors and more. The task of
managing, monitoring and maintaining these devices as well as controlling
related energy consumption across a school district, with potentially thousands
of classrooms, has taken on a life of its own. In today’s difficult times, brute
force solutions involving more money, resources and manpower are no longer
viable options.  School administrators need a market basket of
technology and services to address this need, and Simtrol offers a solution. Our
“Classroom Control” solution (also branded Activcommand by Promethean) supports
“green” initiatives and sustainability by automatically shutting down devices
when they are not in use, and provides school administrators with the ability to
proactively identify maintenance issues and organize support using data gathered
from the devices over the network. The education market has many factors that
are attractive to Simtrol:

    


    
      	
               
      

            	
              ·

            	
              Large,
      growing pools of unmanaged devices

            


    

    
      	
               
      

            	
              ·

            	
              $150
      billion U.S. Government stimulus plan to invest in education - more than
      double the Department of Education’s current annual
  budget

            


    

    
      	
               
      

            	
              ·

            	
              Increasing
      pressure to reduce costs: operations, energy, support, maintenance, and
      supplies

            


    

    
      	
               
      

            	
              ·

            	
              OEM
      partner in Promethean with well established distribution channel &
      large installed base

            


    

    
      	
               
      

            	
              ·

            	
              High-demand
      for interactive technologies in the classroom; they are now a
      ‘must-have’

            


    

    


    


    Our
approach to the education market involves reseller arrangements with partners,
including Promethean (the fastest growing interactive whiteboard manufacturer,
with the leading market share in the K-12 segment) and a select group of large
integration and service providers focused on this market. The Company
will execute a “land and expand” growth strategy.  The plan for 2009
is to sell approximately 75 ‘seed’ systems and 3-5 large footprint installs
(installs greater than 1,000 classrooms) in some of the largest, thought-leading
school districts across the U.S.  The initial sales focus will be
directed at targeting new, large Promethean customers who are in the process of
deploying interactive whiteboards. So far, we have “proof of concept” (POC)
implementations in three districts managing approximately 150 classrooms. These
districts have a total of 10,250 classrooms available for deployment. We
currently have proposals out to 21 districts for POCs representing more than
26,000 classrooms and potential revenue between $2.0 and $2.5 million for
Simtrol. We believe the overall addressable pipeline in education over the next
eighteen months for Simtrol may exceed $30 million.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    


    In
addition to the education market, we have explored opportunities in healthcare,
corrections, and digital signage (retail). We have seen some success, having
signed a significant reseller agreement in the healthcare space, a second deal
to manage the world’s largest video visitation operation in a corrections
facility, and launching a pilot to manage digital signage for a large retailer.
These deals are all opportunistic and have the potential to grow into large
business opportunities over time. Our near-term focus, however, will be on the
education market as outlined above.

    


    One
characteristic of the education market is that it has a number of short “buying
windows” throughout the year (primarily summer, spring and winter breaks) and
much less buying activity during the remainder of the year.  Although
we are just coming into the spring/summer “buying season” in the education
market, some buying decisions are being delayed due to budget shortfalls, a
reluctance to buy technology at the same time employees are being furloughed or
laid off, and a need to fully understand the federal stimulus package and its
impact on budgets.  As a result of this uncertain market timing,
Simtrol will need to attract $1.5 – $2.0 million in additional capital in the
near term. We are finalizing our plan to secure this capital.

    


    To
summarize, we have built a great team, we have refined and productized our
technology making it easy to deploy and maintain, and we have identified a
market focus and started gaining traction. We expect this revenue traction to
accelerate as we enter the summer months and schools invest in technology for
the upcoming year. We appreciate your support of Simtrol over the years and are
continuing to work hard on your behalf.

    


    Respectfully
yours,

    


    /s/
Oliver M. Cooper, III – President and Chief Executive Officer