EFTA01119778.pdf

SUMMARY OF OUTSTANDING BALANCES Dates Outstanding Amounts Description 4/10/06 - 10/15/08 $4,273,011.29 Loan Payable by NYSG to JEE, representing outstanding balance of transfers during the period of 4/2006 through 10/2008 by JEE to NYSG to fund NYSG's Operations 11/6/2007 $3,458,416.55 FTC transfer to DKI Attorney Trust Account used to pay off non-recourse promissory note of DKI in favor of The Wexner Children's Trust II, Reflected on FTC's books as a Loan Payable from DKI. 1/19/05 - 12/4/07 $1,135,000 Balance of NYSG Officer's Loan account indicating a loan payable by DKI to NYSG (See Timeline on next page for description of transfers and account adjustments creating the $1,135,000 balance of this loan payable) 6/18/03 $1,047,000 Transfer from JEE to DKI Trust Account for KCAC, LLC, and booked as JEE investment in KCAC. On K-1 for 2011 JEE capital account shown as $1,047,000; Michelle Saipher capital account shown as $763,000 $698,000 based on the As per Alan Dlugash treat as following: loan payable by DKI to JEE 1/27/03 $100,000 Transfer from JEE to the Trust Account of Seller's counsel as 1st Deposit in connection with purchase of DKI Home 3/6/03 $598,000 Transfer from JEE to DKI Atty Trust Account to Pay 2nd Deposit in connection with purchase of DKI home EFTA01119778  TIMELINE OF TRANSFERS 1/27/03 $100,000 Transfer from JEE to Counsel for Seller, representing 1st Deposit on purchase of DKI's home. As per Alan Dlugash, should be loan to DKI. Also reflected on JEE's books as a loan to DKI 3/6/03 $598,000 Transfer from JEE to DKI Attorney Trust Account for KCAC, representing 2nd Deposit on Purchase of DKI's home. Reflected as a loan to DKI on JEE's books, which is how Alan Dlugash advises it should be treated. The full $698,000, plus additional contributions made by Michelle are reflected as capital contributed by Michelle to KCAC. 6/18/03 $1,047,000 Transfer from JEE to DKI Attorney Trust Account for KCAC, reflecting payment of purchase price balance (not including additions which Michelle paid for). Booked as JEE investment in KCAC. K-1s for KCAC currently show JEE capital account at $1,047,000 and Michelle's capital account at $763,000. 12/19/03 - 11/18/04 $990,000 Several Transfers to NYSG from DKI reflected on NYSG's books as a $990,000 balance of officer's loans then EFTA01119779  payable by NYSG to DKI 12/29/04 $1,100,000 Transfer from JEE to DKI Attorney Trust Account, reflected in JEE's books as a loan payable by DKI to JEE. No records of what this payment was for. 1/19/05 $1,100,000 Transfer from NYSG to DKI Attorney Trust Account, reflected on NYSG's Officer's Loan account as reducing the $990,000 loan balance payable to DKI to a $110,000 loan receivable from DKI. This Transfer shows up on 1/20/05 on the transaction report for DKI Attorney Trust Account as being a loan from JEE, but is not reflected on JEE's DKI Loan account Since a payment to you in the same amount was made a week later on 1/28/05, it appears that it was transferred from NYSG to be used to repay your loan account for the $1,100,000 loan transferred to the DKI Attorney Trust Account in December 2004. 1/28/05 $1,100,000 Check from DKI Attorney Trust Account to JEE indicated on the memo section of check as Loan Repayment Reflected as loan repayment on JEE's DKI Loan Account 9/12/05 $75,000 Payment from NYSG to NYS Estimated Income Tax (tax payment for DKI). EFTA01119780  Created a -$75,000 balance on NYSG's Member's Equity account 12/31/2005 $1,078,000 Check from DKI Attorney Trust Account. Transaction report for DKI Attorney Trust Account shows this as a check to Merrill Lynch, but our office can find no records of what that check was for. Alan Dlugash thinks this could be used to explain or reduce loans payable by NYSG to You or loans payable by me to NYSG. 1/31/06 $250,000 Transfer from NYSG to DKI. Decreased NYSG's Member's Equity account balance to -$325,000. 4/11/06 $250,000 Transfer from NYSG to DKI. Decreased NYSG's Member's Equity account balance to -$575,000 5/24/06 $200,000 Transfer from NYSG to DKI. Decreased NYSG's Member's Equity account balance to -$775,000 10/20/06 $100,000 Transfer from NYSG to DKI. Decreased NYSG's Member's Equity account balance to -$875,000 12/31/06 $875,000 Adjustment to NYSG's Member's Equity account to increase the balance to $0 and adjustment to NYSG's Officer's Loan account to increase NYSG's loan receivable from DKI to $985,000. 12/4/2007 $150,000 Transfer from NYSG to DKI, increasing NYSG's loan receivable from DKI to $1,135,000. Not reflected on NYSG's tax EFTA01119781  return as a distribution, but DKI's accountant reflected this as other Schedule C income on DKI's tax return for 2007. 11/6/07 $3,458,416.55 Transfer from FTC to DKI Attorney Trust Account and transfer from DKI Attorney Trust Account to Account of The Wexner Children's Trust II, representing repayment in full of non-recourse promissory note by DKI in favor of The Wexner Children's Trust II. Funds from that promissory note were loaned on a non- recourse basis by The Wexner Children's Trust II to DKI and were used by DKI to purchase the majority NYSG interest from Jeff Schantz US owned approximately 98% and I owned only approximately 2%) EFTA01119782