EFTA01113312.pdf

NY Strategy Group LLC ("NYSG") - Actions Explanation 1. Complete NYSG 2012 return 1. a) III had already with the following included: included in a) Write off S150k fee to his personal income tax III, included in "officer return - NYSG had loans" erroneously reflected b) 5385 fee paid to III (by this S150k as "officer reducing his payable to loan", a receivable, the company) instead of an expense b) treating this as additional (taxable) compensation to 2. In 2013, III repays NYSG $600k, the balance of his • in 2012 loan 2. loan payment, paid in full 3. NYSG then pays to JE all of its remaining liquid assets 3. cleans up the JE (approximately S800k) in full receivable from NYSG, satisfaction of his then giving JE the remaining 84,273k loan, with the liquid assets of NYSG in balance forgiven. Agreement the process is prepared to reflect this. 4. On 12/31/2013 JE forecloses or buys NYSG stock from III for the 53,458,417 loan he 4. with NYSG having no had previously made to III to remaining assets, JE enable him to buy the stock foreclosures on his 53,458,417 loan he had made to III to enable - to purchase the stock from Schantz (the NYSG stock was security for the loan). Because of the 5. JE liquidates NYSG (2013 or 12/31/13 transaction date, 2014) recognizing a long-term all flow through income capital loss of approximately for the year will inure to 83,400k M• 5. JE receives virtually nothing against his cost of $3,458,417. EFTA01113312