The following three accounts dont look as if they are collectable. Therefore, I am charging these (3) off as "bad debts". If they are collected in the future I will credit your account of 20% of any receipts. They are as follows:

The present losses up to date are $43,940.00. To be added to this sum is $11,605.00. This makes a total of $55,545.00 as bad debts up to date.

Up to $50,000.00, after deducting Joseph Paige's share of 20%, your share comes to 25% of the balance. Now that the amount has exceeded $50,000.00, Joseph Paige's share is reduced to 10%, and you will be charged 25% after deducting 10% of any future losses. Your share of this will now come to as follows.:

(A) On the balance up to $50,000.00 is $6,060.00, your share 20% equals $1,212.00.

(B) On the balance which is $5545.00, 10% for Paige's equale $554.00. The balance of $4991.00 which 25% for I.M. is $1247.75 or a total of $2459.75, divided over 6 months comes to $410.00 each note.

As it stands now, you owe me $625.00 plus this $410.00 which is now being added, making that $1035.00, or $35.00 due me each month. Any monies which I am receiving from Ben Zuckerman and Alert, at present, I shall credit your account and send you a check each month to keep the records straight.

Very truly yours,

C15.

ADMIRAL TRADING CORP.

CB/ibl

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