EFTA00729361.pdf

Rich Kahn HBRK Associates Inc. PO Box 400 New York, NY 10150 September 26, 2009 Rich, In follow up to our last meeting I am providing you with reports discussed that will show you how we intend to position MC2 Model Management as we enter 2010. We have reduced our operational expenses in both offices in order to have a 4.5 million dollar gross billing breakeven point for the calendar year 2010. We look to the 4th quarter for a strong finish to round out the year with a 6.9 million dollar consolidated gross billing for the 2009 calendar year. Reaching this goal will have us close 2009 without a consolidated net operating loss or a nominal one if any. We look to the 41h quarter with optimism as the economy has slowly been starting to move again in the 2nd half of 2009 and we have seen this mirrored in the production and planning of retail advertising. We recognize that we will be challenged in the 41h quarter to meet our goals but are finishing 2009 in what we believe is a healthy position for the future with a reduction in expenses that allows the company to maintain the current income level and still have room to increase revenue for 2010. At present we have retained Monte Engler of the law firm Phillips Nizer in order to begin the resolution of our open tax issue. We are discussing and putting together a plan in order to service this liability over time. As we have just begun this process it is difficult to make any further forward looking statements; however, we will attempt below to factor that liability into the repayment of our line of credit. It is obviously imperative for us to meet our obligations to the government in order to continue to operate the business and service our debt to the line of credit. During the 4th Quarter of 2009 we will make our best efforts to pay back as much as we can toward the line of credit. Below I am outlining a proposed payment plan for 2010, and onward, based on the following gross billing estimates; providing that we are able to set an annual payment plan with the IRS for $240,000 per year. EFTA00729361  Available for Debt Reduction Gross Profit Gross Line of (27.5% Projected Net Income IRS Billings Credit Margin) 4,500,000 1,237,500 5,500,000 1,512,500 270,000 240,000 30,000 6,000,000 1,650,000 410,000 240,000 170,000 6,500,000 1,787,500 550,000 240,000 310,000 7,000,000 1,925,000 640,000 240,000 400,000 7,500,000 2,062,500 740,000 240,000 500,000 8,000,000 2,200,000 790,000 240,000 550,000 8,500,000 2,337,500 890,000 240,000 650,000 9,000,000 2,475,000 940,000 240,000 700,000 Fluctuations and variances of the above figures are pending the finalization of an agreement with the IRS that is being prepared for initiation. I've posted more conservative numbers as our profitability increases taking into account the necessity for key employee bonuses, the potential for slightly more support staff, and possibility of an increased need for promotion and travel. Realistic performance estimates for 2010 fall in the range of 6.5MM to 7.5MM. Looking forward this should allow us to service our IRS debt and repay the line of credit within 36 months conservatively or sooner depending on the businesses performance and productivity. In the event that we are not able to broker the deal we wish to with the IRS and the company performs on the conservative end of the above estimates it could be reasonable forecast a repayment schedule taking as long as 48 months. Sincerely, Jeff R Fuller EFTA00729362 EFTA00729363