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Reports from Russ Whitney' employees to John T. Reed As a result of my investigation of Russ Whitney in conjunction with defending myself against his lawsuit, I have received a number of calls from former and possibly current employees of Russ Whitney. The stories they tell are damning and, in many cases, funny. If you have any such stories or know someone who does, please contact me or tell them to contact me. Copyright 2002, 2003 by John T. Reed Last update 4/3/03 I need to verify a story before I publish it and will ask to see confirming documents or speak to witnesses who are willing to testify. If you wish to remain anonymous, don"t tell me your name. I will try to keep the source secret by not volunteering it if I know it, by use of shield laws (protect reporter' sources), and by not answering the question whenever possible. However, I will not go to jail for contempt of court to protect a source. If a judge orders me to tell what I know, I will. Here are some topics I have heard about: "¢ The words used to fire employees at Whitney "¢ Policy regarding contact between fired and current employees "¢ Wording needed in classified ads to hire Whitney employees "¢ Turnover rate among Whitney employees "¢ Criminal background checks for employees (Whitney himself is a convicted felon and ex-convict"”second-degree robbery. Apparently his policy is that only the CEO can be an ex-con.) "¢ Drug tests for salaried employees worldwide "¢ Unemployment

claims rate "¢ Non-compete agreements (Would someone please send me a copy of Whitney' non-compete agreement? Some have told me he does not give you a copy. Oh, really! I am not an attorney, but I believe not giving the other person a copy of a contract means there is no contract. Ever heard the phrase, "signed, sealed and delivered?" No delivery. No contract.) "¢ "All the education you can eat" component of employee compensation "¢ Whitney' position on the tightwad-to-spendthrift spectrum "¢ Backgrounds of speakers (who are independent contractors) "¢ Federal income-tax law compliance "¢ Signatures on testimonial release documents "¢ Sale of lots and houses to persons from out of state attending Whitney seminars "¢ Financing of seminar promotion expenses "¢ Customer satisfaction rates "¢ Profit margins on transactions between Whitney' U.S. and foreign companies "¢ Popularity of plastic surgery among Whitney employees "¢ Campaign contributions and other support for Cape Coral public officials "¢ Florida Labor Board "¢ Why there is no "free training" in the Fort Myers-Cape Coral area "¢ Policy regarding Web sites that "bash" Whitney "¢ Morale in U.K. office "¢ Relations with various state attorneys general "¢ Relations with the FL Division of Finance "¢' The incidence of dissent with Russ among Whitney employees "¢ Why doesn"t Whitney teach any classes anymore? "¢ The incidence of past and current real estate investing among Whitney employees and Whitney real estate instructors "¢ Relationship with the government of the State of Texas John T. Reed, a.k.a. John Reed, Jack Reed, 342 Bryan Drive, Alamo, CA 94507, Voice: 925-820-7262, Fax: 925-820-1259, www.johntreed.com

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