6 STATE HOUSE STATION

AUGUSTA, MAINE 04333-0006

October 10, 1996

Stephen G. Morrell, Esq.

Eaton, Peabody, Bradford & Veague

167 Park Row, P.O. Box 9

Brunswick, ME 04011

Re: State of Maine, et al. V. HER, Inc., et al., Docket No. CV-96-134 Dear Steve:

In connection with the upcoming hearing concerning the proposed settlement between Paul Richard and the bankruptcy trustee, we would appreciate it if you would provide us with whatever information in your possession concerning the source of the $70,000 that Paul Richard intends to use to effectuate the proposed settlement. We would also appreciate it if you would provide us with whatever information in your possession satisfied you Paul Richard is proceeding in good faith in connection with this proposed transaction.

Thank you for your assistance in this matter.