SCHUCHARDT LAW FIRM ATTORNEYS AT LAW U.S. Steel Tower, Suite 660 600 Grant Street Pittsburgh, PA 15219 Phone: (412) 414-5138 Fax: (412) 428-9080 Admitted in Elliott J. Schucharat, Beq. ‘www. schuchardtlaw.com Pennsylvania ‘Atiomey at Law e-mail: ellioti016a@gmail.com ‘Virginia July 9, 2015 VIA E-MAIL & Mr. Phillip C. Stone President Sweet Briar College 134 Chapel Road Sweet Briar, VA 24595 Re: Junior Year Abroad Programs Dear President Stone: I would like to thank you for your efforts in restoring Sweet Briar College. My name is Elliott Schuchardt. I represented the student group that obtained the six- month injunction against the sale of Sweet Briat’s assets, in May 2015. After obtaining the injunction, I negotiated the order authorizing the temporary transfer of Sweet Briar’s YA programs to Hollins University (“Hollins”). This was done to preserve the programs because the feeder schools were threatening to obtain other SYA providers for their students. I recently leamed that Sweet Briar College (“SBC”) is considering allowing Hollins to operate the programs for the coming year. I believe that doing so would be significant mistake. ‘When I negotiated the order authorizing the interim transfer, Hollins expressly agreed to immediately return the programs to SBC, at no cost, if SBC requested return of the programs within 90 days of the termination of the applicable litigation. If this 90-day call option is not preserved by means of a written waiver from Sweet Briar, then SBC will forever lose the programs to Hollins. ‘The JYA programs are highly dependent upon relationships ~ with the feeder schools and with the European providers — to continue operating. For this reason, we took steps to prevent Hollins from seeking to keep the programs by interfering with Sweet Briar’s “human capital” inMr. Phillip C. Stone July 9, 2015 the programs. After much effort, we obtained provisions that protected Sweet Briar. Hollins agreed to not terminate any Sweet Briar employees. It also agreed to not merge the SBC program into the Hollins JYA program, Finally, Hollins agreed to retum the programs at no cost to SBC. Hollins fully understood that it was bearing the cost and risk of an interim transfer of the programs. I explained this to Judge Updike in the attached letter to the Court. It is imperative that Sweet Briar recover the programs immediately, for at least two reasons. First, the SYA programs have traditionally been profitable for Sweet Briar. ‘The programs cared a net profit of about $800,000 per year, as recently as 2011. As of 2014, they were still netting about $500,000. This year, the programs should be at least break-even, since we took steps to preserve the programs by means of the interim transfer to Hollins. ‘Second, the programs are extremely prestigious. Sweet Briar’s JYA program was the first study abroad program in the United States, started in part by Yale University. Since Sweet Briar's program was first, it is unique in that it provides for "total immersion" of the students in the foreign language. Other competing programs teach classes in English, rather than in the applicable foreign language. The Sweet Briar program teaches classes in the foreign language. Since the programs are prestigious, they are essential to marketing Sweet Briar as a prestigious college, To lose these programs for even a year will be a big problem in restarting the college. 1 understand that Sweet Briar has limited resources at this time, and is concerned about having sufficient staff to operate the programs. This should not be a problem since the revenues from the program are Sweet Briar property, and must legally be transferred by Hollins to Sweet Briar upon request. Under the court order, Hollins is not permitted to co-mingle the programs with its own program. If SBC wants Hollins to run the programs for a year, then please ensure that SBC has a written agreement with Hollins waiving the expiration of the 90-day call period on the option. If this understanding is not in writing, the SBC risks losing the programs and is creating into an unnecessary lawsuit to recover the programs. Former board member, Richard Leslie, has additional information on the importance of the programs to Sweet Briar, and its marketing efforts. I can put you in touch with him, upon request. Very truly yours, Elliott Schuchardt Encl.