The document outlines a 5-step plan to conserve cash and stabilize the current cash flow situation: 1. Sell three blocks of properties to capture over $25 million in equity and reduce bleeding expenses. 2. Close two underperforming retail stores to eliminate $200,000 in annual losses. 3. Reduce and refocus legal fees on stronger cases and pursue settlements to lower costs. 4. Adjust staffing and management by creating accountability, streamlining roles, and outsourcing where needed. 5. Clean up old tax bills, remove liens, and outsource tax negotiations to address issues with the IRS, EDD, and other state/city tax authorities.

1. • C O N S E RV E - S TO P B L E E D I N G
O F C A S H
• L I Q U I D AT E N O N
P E R F O R M I N G A S S E T S
• R E D U C E D E B T

2. INFLOWS
Legal Pay 0ffs
Insurance Proceeds
Retail Sales
Rental Properties
OUTFLOWS
Mortgage Interest
Legal Fees
Staff
CURRENT CASH STATUS

3. Spending $70,000 more
each month than
bringing in
In xxx months there will be
no cash
Equity in Properties
exceeds $58 million
Current
CASH =
$ 2
million

4. STEP 1:
TO CASH AT LEAST $25 MILLION
1. Sell the block of properties:
 Property 1
Pay off Loans of $2xxx million, capture more than $15 million
* Save Bleeding of mortgage expense, property taxes and other
support costs
2. Property 2: Save interest, fees, and support costs; Capture $4 million
3. Property 3: Save interest, fees, operating costs. Capture at least $7
million in equity

5. STEP 2: CLOSE 2 RETAIL STORES
DOWNTOWN EXHIBITS: Costs more to operate than brings in Sales.
Losing $200,000 year
DISPLAY STORES: Costs more to operate than Sales. Staff Costs, Missing
Inventory, Added Liability.
SIMPLIFY! Reduce ! Eliminate Waste

6. STEP 3 REDUCE LEGAL FEES
Focus on potential winning cases
Avoid continued legal costs
Settle when possible

7. STEP 4: ADJUST STAFFING AND MANAGMENT
Create Management System
Define Roles and Goals – Accountability
Streamline Staffing – Outsource as Needed

8. CLEAN UP OLD
TAX BILLS
REMOVE LIENS
DEVELOP GOOD
CREDIT AGAIN
OUTSOURCE TAX
NEGOTIATIONS
IRS, EDD, STATE
and CITY ALL
NEED TO BE
ADDRESSED
STEP 5: CLEAN UP TAXES, FILINGS, AND LIENS

9. SET GOALS
SIMPLIFY BUSINESS LIFE
REDUCE INTEREST EXPENSE, STAFF
WORK NEW CASH INTO RETIREMENT and SUPPORT SYSTEM
NARROW PROJECTS into ONE or TWO SUCCESESS