Bobby N. Harmon, CPCU, ARM




Las Vegas, NV 89118


February 7, 2005

VIA facsimile @ (808)523-6313

Robert K.U. Kihune, Trustee
J. Douglas Ing, Trustee
Constance H. Lau, Trustee
Diane J. Plotts, Trustee
C. Nainoa Thompson, Trustee

Dee Jay Mailer, CEO

Kamehameha Schools
567 South King Street, Suite 200
Honolulu, Hawaii 96813

 

RE:   Settlement Proposal for Claims Against Trustees of Kamehameha Schools, Its Subsidiaries, and Its Employees.

         Ref. Harmon Ch. 7 Bankruptcy Case No 99-04339


Dear Trustees:


As I have not received a response to my last Notice of Claim letter addressed to you dated September 11, 2004, and since I have received no response from any other parties that they would consider trying to negotiate to an out-of-court global settlement, I am hereby submitting the following Settlement Proposal for your consideration.


To settle ALL OUTSTANDING CLAIMS against the Trustees of Kamehameha Schools, and all persons, both past and present, employed directly by Kamehameha Schools, and ALL SUBSIDIARIES, with the sole exception of P&C INSURANCE COMPANY, INC., I will accept the SUM OF $1.00 (ONE DOLLAR), subject to the following conditions:

 

1.      That Kamehameha Schools, in accordance with applicable IRS regulations, issue to me for calendar year 2000, IRS Forms W-2 and 1099-R for the amount of settlement that I received in the referenced Bankruptcy case.

 

2.      That Kamehameha Schools calculate, and add to my retirement plan account, the earnings that would have accrued in the plan account, had the required contributions to the plan been made in year 2000.

 

3.      That each of the three Trustees of Kamehameha Schools who signed the global Settlement Agreement in the referenced case, provide an Affidavit attesting to the fact that the signature on the document was his or her signature.

 

4.      That Kamehameha Schools provide an Affidavit providing the following claims information regarding my original wrongful termination lawsuit, the RICO lawsuit, and all subsequent claims that I have made against Kamehameha Schools, and its subsidiaries, that are to be considered for release under this proposed Settlement Agreement:

 

         a.      The name and mailing address of the Insurance Carrier for each of these claims; their Policy Number; Policy Period; Claim Number; Date Claim Made; and the name and address of their assigned Claims Administrator.

 

         b.      True copies of Attorney of Record letters, or similar contracts, from Kamehameha Schools to its outside attorneys for each of the claims that are to be released under this proposed Settlement Agreement.

 

         c.       True copies of all letters or documents from your Insurance Carriers indicating their consent to the use of Kamehameha Schools’ contracted outside attorneys for each of these claims.


Additional background information regarding the various claims that I have made against Kamehameha Schools and its subsidiaries, can be found at the following internet addresses:


www.the-catbird-seat.net/Claims-By-Harmon.htm


www.the-catbird-seat.net/Claims-Branch-Kamehameha.htm


All of the terms and conditions that I have outlined in this proposed Settlement are negotiable – provided that I be notified on or before February 17, 2005, that Kamehameha Schools is, in good faith, willing to enter into negotiations to try to resolve these long-outstanding claims in a reasonable and cost-effective manner.


Please feel free to contact me if you have any questions. Thank you very much for your kind consideration in this matter.


Very truly yours,




Bobby N. Harmon

 

cc:     Michael G. Cherkasky, President and CEO

Marsh & McLennan Companies, Inc.

(via fax @ 212-345-4838)

 

John D. Finnegan, President and CEO, The Chubb Corporation

(via fax @ 908-903-2027 and Email: info@chubb.com)

 

Mr. Mike Coulter, Deputy Managing Director, Aon Insurance Managers

(via fax @ 808-540-4301 and Email: mike_coulter@agl.aon.com)

 

P&C Insurance Co., Inc. (via fax @ 808-523-6313)

 

Matt A. Tsukazaki, Esq., Torkildson Katz Fonseca...

(via fax @ 808-523-6001 and Email: mat@torkildson.com)

 

William K. Slate II, President/CEO, American Arbitration Association

(via fax @ 212-716-5905 and Email: Websitemail@adr.org)

 

Mark Appel, Senior Vice President, International Centre for Dispute Resolution

(via e-mail: AppelM@adr.org)

 

James B. Farris, Senior Case Manager, American Arbitration Association

(via fax @ 559-490-1919 and e-mail: Farrisj@adr.org)

 

Mary Lou Woo, c/o Steven Guttman, Kessner Duca Umebayashi, et al.

(via fax @ 808-529-7177 and e-mail: sguttman@kdubm.com)

 

         Mark Bennett, Attorney General, State of Hawaii 

(via fax @ 808- 586-1239 and e-mail: hawaiiag@hawaii.gov )

 

Governor Linda Lingle, State of Hawaii (via fax @ 808-586-0006)

 

Hugh Jones, Deputy Attorney General (via fax @ 808-586-1477)

 

J.P. Schmidt, Hawaii Insurance Commissioner (via fax @ 808-586-2806)

 

Janet Hughes, Internal Revenue Service (via fax @ 303-844-3596)

 

Billy Beaver, Pension & Welfare Benefit Admin. (via fax @ 626-229-1098)

 

Lyn Flanigan Anzai, Hawaii State Bar Association (via e-mail: lanzai@hsba.org)

 

Susan Tius, Esq., c/o Rush Moore Craven... (via fax @ 808-521-0597)

 

         Trustees Jervis, Lindsey, Peters, Stender, and Wong, c/o Kenneth Hipp, Esq., Marr Hipp Jones & Pepper (via fax @ 808-536-6700)

 

Sidney K. Ayabe, Esq., Ayabe Chong Nishimoto Sia & Nakamura

(via fax @ 808-526-3491)