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Haxnmons & Mies <br /> Attorneys at Law <br /> 115 W. 8,h Ave., Suite 280 <br /> Eugene, Oregon 97401 <br /> Terence J. Hammons Telephone: (541) 484 -1216 David B. Mills <br /> Facsimile: (541) 484 -5326 <br /> April 5, 2004 <br /> Emerald Valley BMX <br /> Executive Board (� <br /> 2700 Leo Harris Parkway �~ <br /> P.O. Box 7742 r_ 1 1 <br /> Eugene, OR 97401 <br /> Re: Emerald Valley BMX / Snooks / ABA <br /> Dear Ladies and Gentlemen: <br /> At your request, and to fulfill your obligation with the Oregon Department of Justice, <br /> I have reviewed many of the same documents the Justice Department did in an attempt to <br /> analyze potential claims Emerald Valley BMX might have against Scott Snook and/or Candy <br /> Snook, as well as the American Bicycle Association. <br /> I do not intend to repeat the findings and recommendations contained in the audit <br /> report from the Department of Justice dated April 10, 2002. I concur in those findings and <br /> recommendations, except as to issues involving parking revenues. <br /> I will indicate the potential claims that I think exist, potential courses of action <br /> available, and analysis of the potential outcome of the different courses of action. <br /> CLAIMS AGAIN T SCO SNOOK AND /OR CANDY SNO • K <br /> 1. Mismanagement and Fail to Ma Accurate Corporate Records. The Justice <br /> Department has noted the failures of the Snooks in this regard. I concur with those findings <br /> and recommendations. I believe that realistically there is no remedy available to Emerald <br /> Valley BMX. The remedy was to terminate the Snooks and to get the corporation back to <br /> where it should be with the State, and that has apparently been done. <br />