EFTA01113313.pdf

NY Strategy Group LLC ("NYSG") - Actions Explanation 1. Complete NYSG 2012 return with 1. a) had already included in the following included: his personal income tax a) Write off $150k fee to return - NYSG had s included in "officer loans" erroneously reflected this b) $385 fee paid to (by $150k as "officer loan", a reducing his payable to the receivable, instead of an company) expense b) treating this as additional (taxable) compensation to in 2012 2. In 2013, repays NYSG $600k, 2. loan payment, paid in full the balance of his loan 3. NYSG then pays to JE all of its 3. cleans up the JE receivable remaining liquid assets from NYSG, giving JE the (approximately $800k) in full remaining liquid assets of NYSG satisfaction of his then $4,273k in the process loan, with the balance forgiven. Agreement is prepared to reflect this. 4. On 12/31/2013 JE forecloses or buys 4. with NYSG having no remaining NYSG stock from for the assets, JE foreclosures on his $3,458,417 loan he had previously $3,458,417 loan he had made to made to to enable him to buy to enable IM to purchase the stock the stock from Schantz (the NYSG stock was security for the loan). Because of the 12/31/13 transaction date, all flow through income for the year will inure to M. 5. JE liquidates NYSG (2013 or 2014) 5. JE receives virtually nothing recognizing a long-term capital loss against his cost of $3,458,417. of approximately $3,400k EFTA01113313