MUCHNICK, GOLIEB & GOLIEB, P.C. MEMORANDUM TO: David Mitchell CC: Randy Amengual Stephen P. Hanson FROM: Howard Muchnick SUBJECT: Closing the Henry DATE: March 6, 2018 Whether by design or poor judgment, you have made it impossible for the restaurant to operate and to remain in business. Steve will not incur additional personal expenses to support the restaurant for what has become apparent — the project cannot survive under your leadership. You failed to fund $100,000 of the $800,000 budgeted for, and needed by, the restaurant to pay for its anticipated early losses. You then borrowed $100,000 from the restaurant, only $20,000 of which has been repaid despite your promises of immediate payment. Thus, the restaurant is without the money needed to operate. Unless you return to the restaurant $40,000 of the $100,000 that the hotel borrowed from it, being the amount needed to pay sales tax due next week, Steve will inform the staff later this week that the restaurant will close no later than March 18, 2016. Much of the litany of complaints for how we got to the current situation have been aired previously. However, your actions today to deny Alan Hochhauser computer access to the information needed for gift card/guest information and reconciliation is without precedence. Alan was costing the hotel nothing out of pocket and helping the restaurant to operate. That you denied Erin Pepper access to the hotel's computer platform to continue her work on public relations and the guest experience is illogical and solidified Steve's belief that you are intentionally sabotaging the restaurant. See their e-mails attached. Thus, despite the restaurant's wonderful reviews and its direct march towards profitability, it will die before having had a chance to succeed. HWM HWM/mb piclientA0000039amcmok2018Thenor.foroe.close.0306.docx EFTA00800082