From: Richard Kahn To: "jeffrey E." <jeevacationggmail.com> Subject: Fwd: Information You Requested Date: Mon, 05 Feb 2018 23:07:21 +0000 Richard Kahn HBRK Associates Inc. 575 Lexington Avenue 4th Floor New York, NY 10022 tea el Begin forwarded message: From: "Kelly, William" Subject: RE: Information You Requested Date: February 5, 2018 at 5:58:26 PM EST To: Richard Kahn < Cc: Sam Bain For Settlement Purposes Only Dear Richard: I look forward to speaking with you tomorrow and hope that we can come to a mutually-acceptable resolution of Noam Chomsky's issues with Bainco. Sam Bain and Isabel Scharmer believe that, in all of their dealings with Noam and specifically in recommending that he invest in the private equity deals, they acted in Noam's best interests in a manner consistent with his stated investment objectives. My understanding is that Noam made two investments through his Revocable Trust ($17,500 in 372 Outsmart Ext II and $100,000 in 500 NRI) and three investments through his IRA ($75,000 in 372 Outsmart Ext, $50,000 in 372 RFID CVT and $25,000 in 372 RFID CVT II), for an aggregate commitment of $267,500 to private equity. Sam and Isabel recognize that a protracted debate regarding these investments would be expensive, disruptive and time consuming for both sides and so, without acknowledging any liability, they have authorized me to make the following settlement offer: (i) Bainco will identify a third party to purchase the RFID investments at Noam's original purchase price of $75,000 and will facilitate this transfer; and (ii) Bainco will make an additional lump sum payment to Noam in the amount of $75,000, to cover a portion of his losses on the OutSmart and NRI investments. With the $150,000 cash payment and the tax benefit that Noam's revocable trust received on its capital losses on the OutSmart and NRI investments (which we calculate to be approximately $27,000 based on an assumed combined federal and Massachusetts cap