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FORM 8-K
QSGI INC. - QSGI
Filed: November 14, 2007 (period: November 06, 2007)
Report of unscheduled material events or corporate changes.
Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 2 of 10
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): November 6, 2007
QSGI INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware
(State or Other Jurisdiction of
Incorporation)
001-32620
(Commission File Number)
13-2599131
(IRS Employer Identification Number)
400 Royal Palm Way, Palm Beach, FL 33480
(Address of Principal Executive Office)
Registrants telephone number, including area code: (561) 835-9757
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 3 of 10
ITEM 2.02 Results of Operations and Financial Condition
(a) On November 6, 2007, the Company issued a press release disclosing its financial results for the three and
nine months ended September 30, 2007. Text of the press release dated November 6, 2007, titled QSGI
Reports Third Quarter Results; 54% Increase in Gross Profit within Data Security & Compliance
Division; 19% Increase in Gross Profit within Data Center Maintenance Division; Achieves Third
Consecutive Quarter of Positive EBITDA" is furnished as Exhibit 99.1 to this current report.
ITEM 9.01 Financial Statements and Exhibits
(d) The following exhibits are being filed or furnished with this report:
Exhibit 99.1 a. Text of a press release issued by the Company dated November 6, 2007, titled " QSGI Reports Third
Quarter Results; 54% Increase in Gross Profit within Data Security & Compliance Division; 19%
Increase in Gross Profit within Data Center Maintenance Division; Achieves Third Consecutive
Quarter of Positive EBITDA"
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
QSGI INC.
Date: November 6, 2007 By: /S/ Edward L. Cummings
Edward L. Cummings
Chief Financial Officer and Treasurer
2
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 4 of 10
IR Contact Exhibit 99.1
David K. Waldman/Klea K. Theoharis
Crescendo Communications, LLC
qsgi@crescendo-ir.com
(212) 671-1020
QSGI Reports Third Quarter Results
54% Increase in Gross Profit within Data Security & Compliance Division
19% Increase in Gross Profit within Data Center Maintenance Division
Achieves Third Consecutive Quarter of Positive EBITDA
HIGHTSTOWN, NJNovember 6, 2007 QSGI, Inc. (OTCBB: QSGI), the only provider of a full suite of information technology
solutions to help corporations better manage hardware assets, maintenance expenses, and ensure best practices for data security and
regulatory compliance, today reported financial results for the three and nine months ended September 30, 2007.
Recent Developments:
54% increase in gross profit within Data Security & Compliance division and 19% increase in gross profit within Data Center
Maintenance division
Added over $300,000 of additional Data Center Maintenance contracts increasing the divisions anticipated annualized
revenue run rate to $7.0 million during the fourth quarter
Added global consumer products company and the U.S. subsidiary of a leading international tire manufacturer for full suite
of data security and compliance services
Entered into an agreement with one of the largest electronics OEMs headquartered in Europe to re-market excess North
American manufacturing and service parts
Data Center Hardware division negatively impacted due to anti-competitive business practices by a leading OEM
Marc Sherman, chairman and chief executive officer of QSGI, commented, The third quarter was characterized by continued strong
growth in recurring services within both our Data Security & Compliance as well as our Data Center Maintenance divisions, which
was offset by a sharp decline in our Data Center Hardware division due to what the company believes to be actionable
anti-competitive business practice by a leading OEM. These practices have impacted the entire industry for remarketing zSeries
mainframe systems. The Company is evaluating its options with respect to these practices and the OEM. Nevertheless, the Data Center
Maintenance Division achieved yet another double digit increase in revenue and gross profit posting a 19% increase while maintaining
gross margins at 64%. At the same time, growth in higher margin end-user data security services allowed the Data Security &
Compliance division to post a double digit increase in revenue and gross profits as well.
Mr. Sherman continued, Growth in the Data Security & Compliance division is being driven by legislation to protect confidential
information contained on enterprise storage systems, servers, and desktop PCs. Revenue within the division increased to $6.2 million,
from $5.0 million in the comparable quarter last year, while gross profit rose 54% and gross margin increased over 290 basis
points. Recent client wins in this
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 5 of 10
division included one of the largest electronics OEMs in Europe, a global consumer products company with over 100,000 employees,
a U.S. subsidiary of a leading international tire manufacturer with production facilities throughout the U.S., a major wholesale
distributor and GE Commercial Finance in India. We look forward to reaping the rewards of these additional revenue sources in the
coming months. Excluding a one-time gain, net of expenses of approximately $300,000, attributable to the successful settlement of a
matter that the Company had pursued in litigation, EBITDA loss for this division was $273,000, but greatly improved over the
$583,000 and $357,000 EBITDA losses in the first and second quarters this year. This reflects the fact we were able to maintain our
reduced level of SG&A during the quarter as we increased gross profit within the division. We look forward to crossing the threshold
to profitability within this division in the very near future.
As we have stated in the past, we are shifting resources from the lower margin re-marketing of technology equipment towards our
higher margin recurring IT services across the spectrum of equipment in data centers and the corporate computing
environment. Accordingly, revenues within our Data Center Maintenance division increased to $1.7 million compared with $1.3
million in the third quarter of last year, an increase of over 24%. This division has now experienced double digit growth for over 14
consecutive quarters and we are currently at a revenue run-rate of approximately $7 million heading into the fourth quarter, up from
just $5.3 million annualized run rate for the fourth quarter of 2006. Mainframe and mid-range server maintenance contracts obtained
in the second quarter and early third quarter contributed to the revenue gain and with new contracts coming online, we expect this
growth to continue. Our new business pipeline continues to expand as word spreads regarding our capabilities and the outstanding
value we offer our customers versus the alternatives in the marketplace. We also continue to expand our suite of services, adding Sun
server expertise earlier this year, as well as building upon our midrange p-Series, x-Series, i-Series and HP capabilities.
While we experienced a sharp decline in the Data Center Hardware division during the third quarter, revenue in our other two
divisions was quite strong. We expect revenues in the Data Center Hardware division will continue to feel the impact of the OEMs
trade practices and for this reason we will continue to shift our resources towards the recurring and higher margin services in our other
two divisions. Even with the impact of these new trade practices, the ongoing shift in our revenues allowed us to achieve positive
EBITDA for our third consecutive quarter and we expect this trend to continue.
Total revenue for the third quarter of 2007 was $8.8 million, as compared with $9.4 million for the same period in 2006. Gross profit
was $2.1 million, compared to gross profit of $2.3 million in the third quarter last year reflecting the decline in revenue within the
Data Center Hardware division. Gross margin for the third quarter of 2007 was 24% compared to 24% for the same period last
year. Revenue within the Data Security & Compliance division for the third quarter of 2007 was $6.2 million, while gross profit
increased 54% and gross margin increased over 290 basis points to 15%, reflecting the companys shift from wholesale remarketing to
higher margin end-user services. Revenue within the Data Center Maintenance division increased 24% to $1.7 million, while gross
profit increased 19% on gross margins of 64%. The year-over-year decline in gross margin from historical levels within the Data
Center Maintenance division reflects additional personnel the company added to handle its new mid-range maintenance service
offering, which improved over the second quarter of 2007 as the company increased utilization of its new personnel. The strength in
QSGIs Maintenance division and data security services was offset by revenues within the Data Center Hardware division, which
decreased 70% to $911,000, after elimination of intercompany revenues. The decline in revenue within the Data Center Hardware
division reflects the erratic nature of sales within the division and a difficult selling environment. Selling, general and administrative
expenses were $1.9 million, versus $2.3 million for the same period last year, as overhead reductions and settlement of litigation in the
companys Data Security & Compliance division offset the additional technical capabilities added to provide services for the
maintenance of IBM mid-range and Sun server hardware. Net loss available to common stockholders for the third quarter of 2007 was
$182,773, or $0.01 per share, compared to a net loss of $226,138, or $0.01 per share, for the same period in 2006.
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 6 of 10
Conference Call
QSGI will host a conference call at 10:00 a.m. Eastern Time today, November 6, 2007. During the call, Marc Sherman, chairman and
chief executive officer, Seth Grossman, president and chief operating officer, and Ed Cummings, chief financial officer, will discuss
the Companys quarterly performance and financial results. The telephone number for the conference call is 866-334-4934. A live
webcast of the call will also be available on the company's website, www.QSGI.com. To listen to the live call online, please visit the
site at least 10 minutes early to register, download and install any necessary audio software.
The webcast will be archived on the site, and investors will be able to access an encore recording of the conference call for one week
by calling 866-245-6755, conference ID # 299402. The encore recording will be available two hours after the conference call has
concluded.
About QSGI
QSGI provides a full suite of information technology solutions to help corporations and governmental agencies better manage
hardware assets, reduce maintenance expenses, build best practices for data security and assure regulatory compliance. With a focus
on the entire range of IT platforms - from the PC to the mainframe, the services offered by QSGI are specifically designed to reduce
total cost of ownership for IT assets and maximize the clients' return on their IT investment.
For enterprise class hardware in the data center, QSGI offers hardware maintenance services, hardware environment planning and
consultation, refurbished whole systems, parts, features, upgrades and add-ons. Additionally, for desktop IT assets, servers and SAN
products, QSGI offers a range of end-of-life services that include: automated asset auditing, Department of Defense (DOD) level data
destruction, documentation for regulatory compliance, hardware refurbishment with worldwide remarketing or proper IT asset
recycling. Given the sensitive nature of the company's client relationships, it does not provide the names of its clients. Additional
information about the company is available at www.qsgi.com.
Statements about QSGIs future expectations, including future revenues and earnings, and all other statements in this press release
other than historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section
21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Litigation Reform Act of 1995. QSGI intends
that such forward-looking statements involve risks and uncertainties and are subject to change at any time, and QSGIs actual results
could differ materially from expected results. QSGI undertakes no obligation to update forward-looking statements to reflect
subsequently occurring events or circumstances.
(tables follow)
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 7 of 10
QSGI INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2007 2006
Assets
Current Assets
Cash and cash equivalents $ 661,488 $ 632,948
Accounts receivable, net of reserve of $381,282 in 2007 and $780,116 in 2006 4,239,986 8,012,421
Inventories 7,377,065 4,982,710
Prepaid expenses, income taxes and other assets 168,057 183,069
Deferred income taxes 598,661 598,661
Total Current Assets 13,045,257 14,409,809
Property and Equipment, Net 286,072 410,241
Goodwill 6,644,403 6,644,403
Intangibles, Net 2,629,760 2,555,584
Other Assets 445,509 158,784
$ 23,051,001 $ 24,178,821
Liabilities And Stockholders Equity
Current Liabilities
Revolving line of credit $ 4,275,360 $ 3,915,825
Accounts payable 1,165,287 1,382,336
Accrued expenses 484,168 601,850
Deferred revenue 482,717 517,439
Accrued payroll 126,852 329,658
Other liabilities 103,450 122,784
Total Current Liabilities 6,637,834 6,869,892
Long-Term Deferred Revenue 225,889 416,239
Deferred Income Taxes 294,561 451,625
Total Liabilities 7,158,284 7,737,756
Redeemable Convertible Preferred Stock 4,234,056 4,220,577
Stockholders Equity
Preferred shares: authorized 5,000,000 shares in 2007
and 2006, $0.01 par value, none issued
Common shares: authorized 95,000,000 shares in 2007 and 2006, $0.01 par value;
31,172,716 shares issued and outstanding in 2007 and 2006 311,727 311,727
Additional paid-in capital 14,195,732 14,390,976
Retained earnings (deficit) (2,848,798) (2,482,215)
Total Stockholders Equity 11,658,661 12,220,488
$ 23,051,001 $ 24,178,821
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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QSGI INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For The Three and Nine Months Ended September 30, 2007 and 2006
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2007 2006 2007 2006
Product Revenue $ 6,753,288 $ 7,964,854 $ 22,659,971 $ 30,002,721
Service Revenue 2,003,599 1,400,856 5,156,272 3,838,453
Total Revenue 8,756,887 9,365,710 27,816,243 33,841,174
Cost Of Products Sold 6,018,499 6,610,560 18,731,156 25,067,620
Cost Of Services Sold 654,474 492,994 1,830,475 1,282,739
Total Cost Of Sales 6,672,973 7,103,554 20,561,631 26,350,359
Gross Profit 2,083,914 2,262,156 7,254,612 7,490,815
Selling, General And Administrative Expenses 1,904,476 2,312,095 6,897,779 7,203,007
Depreciation And Amortization 181,079 174,752 520,796 516,432
Interest Expense, net 166,798 56,481 297,990 156,264
Loss Before Benefit For Income Taxes (168,439) (281,172) (461,953) (384,888)
Benefit For Income Taxes (55,257) (123,652) (133,370) (101,199)
Net Loss (113,182) (157,520) (328,583) (283,689)
Preferred Stock Dividends 65,031 64,323 192,970 191,359
Accretion To Redemption Value of Preferred Stock 4,560 4,295 13,478 12,695
Net Loss Available to Common Stockholders $ (182,773) $ (226,138) $ (535,031) $ (487,743)
Net Loss Per Common Share Basic $ (0.01) $ 0.01) $ (0.02) $ (0.02)
Net Loss Per Common Share Diluted $ (0.01) $ (0.01) $ (0.02) $ (0.02)
Weighted Average Number Of Common Shares Outstanding
Basic 31,172,716 31,172,716 31,172,716 29,774,939
Weighted Average Number Of Common Shares Outstanding
Diluted 31,172,716 31,172,716 31,172,716 29,774,939
Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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Case 9:11-cv-80880-KLR Document 44-2 Entered on FLSD Docket 03/12/2012 Page 9 of 10
QSGI INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For The Nine Months Ended September 30, 2007 and 2006
(Unaudited)
2007 2006
Cash Flows From Operating Activities
Net Loss $ (328,583) $ (283,689)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 520,796 516,432
Stock option compensation expense 11,204 13,229
Deferred income taxes (157,064) (180,588)
Common shares issued for services 161,687
Provision for doubtful accounts, net of recoveries (240,650) 556,483
Changes in assets and liabilities:
Accounts receivable 3,667,086 655,216
Inventories (2,394,355) (1,480,478)
Prepaid expenses and other current assets (139,378) (64,464)
Accounts payable and accrued expenses (819,943) (682,086)
Net Cash Provided by (Used In) Operating Activities 119,113 (788,258)
Cash Used In Investing Activities
Purchases of property and equipment, net (89,311) (100,220)
Net Cash Used In Investing Activities (89,311) (100,220)
Cash Flows From Financing Activities
Proceeds from the issuance of redeemable preferred stock 2,236,301
Proceeds from the exercise of options and warrants 9,100
Stock issuance costs (25,499)
Payments for financing costs (167,827)
Preferred stock dividends (192,970) (191,359)
Net amounts (paid) borrowed under revolving lines of credit 359,535 (710,000)
Net Cash Provided By (Used In) Financing Activities (1,262) 1,318,543
Net Increase In Cash And Cash Equivalents 28,540 430,065
Cash And Cash Equivalents Beginning Of Period 632,948 153,794
Cash And Cash Equivalents End of Period $ 661,488 $ 583,859
_____________________________________
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Source: QSGI INC., 8-K, November 14, 2007 Powered by Morningstar
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EXHIBIT B
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EXHIBIT A
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SUBPOENA
UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
In i\1I11cr orOSGI, la,. no-I1303
To: Cu$tQcban or Reconls
c/o Mr. MM: Sbcnnan
400 Royal Palm W7"f
Palm Ikal:h, Florida 33480
YOU MUST PRODUCE everything in the AnachrnentlO this Sllbpoena to
ol1k= uf the SlIril;es and Exchange Commissilln al the dale and lime spocificd below:
100 f SlnlCI, N,E., Washington, D.C. 2OS49S631, Janll;\f)' IS, 2009 by 5:00 p.m.
a YOU MUST TFSflfY orlbe SecuriMs and the
place. date: nlime$pCci.fial below:
FEDf.RAL LAW KQUIRF_"i VO TO CO;o.WLY WITII nus SUB!'Ol:NA.
10 couqllymaylllb}cd)OO 10 a lUx JIld/or itl::\*iJoo'lICU.
D...
Nina H. I'inaon
Branch Chief
D;v;';on of enforcemenl
.nd F.xchanb'<' Commihion
100 I' SlreeI, N.E.
Wuhinaton. D.C. 20549-5631
(202)551-4961
I .... offl!" of the Securities and I:Jldwlge Commission ..tbotW:d 10 issue: ,,'bpoerw in Ihis
mailer. The Secunues and Excha'lgoe Commission h. islIuecl ... bmaI <.>rOer dlis
iD"tstig,aiXal under Section 21(.1.) ofthc Sccunlic:s Exchange Act or 1934.
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ATIACHMENT
QSGI, Inc.
December 18, 2009
J. Ddin;l;ons and Rilles OfCOnSlrUClion
A. As used in this attathment, the term "QSUI"mealls QSG1.1nc. and its present
and fonner subsidiaries, affiliatcs, predecessors, successors, officers, directors, agentS,
employees, shareholders, partnerships, panners, finders. promoters, tonSultants. attorneys.
auditors, and acoountanlS. and any aliases, codc names, trade names. or business names used
by any of the foregoing.
B. As used in this allachment, the term "Vic1<>ry Par"" means Victory Park
Capital LLC and its present and fonner suhsidiaries, affiliates. predecessors,
succcss<;>rs, officcrs, directors, agents, employees, shareholders, partnerships, partners,
finders, promOters. c'lOsul1a!IIS, allom"ys, auditors, and aceowllants, and any aliases, ood"
names, trade names, or business names lL'Ied by anyofthe fnregning.
C. As used in this anachment, the term "Kinetic means Kinetic
LLC and its present and fonner subsidiaries, affiliates, predcccss<;>rs, successors.
officers, directors, agents, employees, shartholders, partnerships. partnt:r.>, finders,
promoters, auelitors, anel accountants, and any aliases, codc names,
trade names, or business names used by any of the foregoing.
D. As used in thi, anachment the tenn "documenTS" means all records, materials.
and other Iangible fonns of expression however and by created, produced, or
stored (manually, mcchanically, electronically, or otherwise). including, but not limited t".
work papers, papers. reports, files, cOTTCSpondence. notes, memoranda (induding notCS and
mcmonnda of communicaTions or meetings), gntphs, ehans, research. analyses, ledger
sheets, periodic account statements, oonfinnations, telegrams. telexes, facsimiles, telephone
logs. chcd:s (front antl back), drafts for money, wire tranSfCT receiptS and requests.
conlinnation. of wire or cash troll.fers, deposit slips, invoices, bills, bills of lading, records
DC billings. records of payment, summaries of intaviews, transcripts, calendars, daTebooks,
worksheets, contracts. agreemcilts. bank statements. vidootapcs. audiol:lpes, and othcr
peml3llenl voice and image recor<lings (including voice-mail). magnetic tapes,
prinTouts, computer tapes, disks, diskcnes. di.k packs, and other clectronic media (induding
electronic-mail), microfilm, microfiche, and other slorage devices. The term "documents"
includes finished versions and dr.ft. ofdocuments; it also includes the original documellt (or
copy ThereofiCthe original is noT available) and all "opies that dilTcr in any resp<.'Ct fTom The
original.
E. As used in this anachment the tenn "concerning" means concerning. referring
to, per1aining to, rcnecting, describing, evidencing, or constituting.
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As usOO in this anachment Ihe tenn ";Ill" shall be construed as any, all. each,
F. As used in this anadunent the tenns "and" and "or" shall be eonstrned as both
and conjullctive to bring ",ilhin the S(;opc uf the altac!ullent all responses that
might otherwise ""n.lruoo outside of it< <cope.
G.
and every.
H. As usOO in this atlaclunent the singular fonn of any word includes its plural,
and vice versa.
II. Production
Pursuant to this suhpoena, prooJuee the following documents in your possession,
e""tooy, or control:
A. Documents mrncientto identify all current and former. (I) officen; (2) diroctoo;;
(3) llCCOllIlting penonnel; (4) sales """"",nel; (5) shipping and n:cciving
personnel; and (6) other employees of QSGl during the period JanU3l)" 1,2007
thruugh. the pm;cnt by 11iIme, title, o.lates of&elViee, and social security number or
lax identification numher, as w,,11 as documents mfficiQlt to identify the last
known contact infonnalion (address, email address. cell phone number, and
landlinc numbl.-r(s)) ofeach person;
B. Documcms sufficient 10 identify by fUllction t!>os<: pernons identified in
response to RC<juest AwOO worked in accounting, e.g., controller. accoWlts
reccivabl" clerk, aceoWlts payable clerk. elc.
C, All <!ocumcnts concerning: (1) John Cunningham's resignation from QSGl's
Board of Directors on Or about April IS, including, but not limited to
the 'orsonal reasons" rerC'Tenced in QSGl's Form IO-K for the fiscal year
ended Decembt::r 31, 2008; (2) Edward L. Cwnmings' resignation as a director
ofQSGI on or about Octob<.T 23, 1008, including, but nOllimited to, his
purported intcn;st in "reduc[ing] the size: of the Board uf Directors 10 create
managerial cfficicncies at the Board leveJ"; (3) Mr. Cummings' ceasing 10 be
the Chief Financial Officer and TreasureT ofQSGI in or MOund May 2009; (4)
Mr. Cummings' appointmenT as Vice President of Finance and ConlTOlJ"r in
or around May 2009: (5) R. Keith ElIinfs resignaTion rrom the Roan! of
Directors on Or aboUI February 27, 2009; (6) QS(Jl's decision that Scth
Grossman's contract would not roll fo!Ward and would be for a period ofThree
years commencing January 1,2009; and (7) Seth Grossman's cessation of
employmenl as QSGl's President and Chief Operating Officer on or aI>ouT
March 9, 2009.
D. Documents sufficient to identify the address ofeach location at which QSGI
Qpmlted at any lime during the period January I, 2007 Ihmugh thc presenl,
including, hut not limitcd 10: (I) facililies maintained at Pleasantville, New
Yorl<; Caneret, New Jersey; New Jersey: J.>alm Reach, Florida;
-2-
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Eagan, Minne!lOta; and BohmIia. New York; and (2) .salcllilC sales and
bu<i"""" developmenl offices in Colorado, Conneclicul, Florida, Georgia.
llIi........ hwli....... K-. M.clUI""- Mi-.ri, Ncbraaka. New Jcney, N_
York. Obio, Pamsylvania, Sooth Carolina. Tuas. aDd Wisconsin.
Documents 10 idmllfy exh buslness K'gmenI to which each
Ioca1ioD identified in n'SpOlU'110 Requeslll related at any time during !he
period J.muary I, 2007 lhrouch the prc:scnt;
F. Documents SlIfTlCient to identify tM activities earried 011 at each location
idenlified in 10 Request D, e.R,. office. sales, and/or storageof
in,=aory,
G All documcnl5 "",,":(:111I;118 QSGr. -ntin& policies. proc:aturcI IlId
and inlC11lll1 controls. including. but 1101 limiled to. lkKummli
cono:ening acoounlS payable. I'e\'enue r(lgnilion, sal.,. reuuns. credit
IIppl'Oval and "")'lIlCl11 terms. bonUICI and commissions, ace:ounll n:cei,.,.,ble
reserves, invaltory reICI"\"CI. inventory managcmenl. and pllldlilSing;
11. All do<.:umenlS mainLaincd for pUTJlOSeS of, or olbef\\isc concemina.. tM
preparalion of QSGI's linallci.l slatenlL'l!.S, including. but oot limiled 10,
joumal enuies (manu:.l and olherwise), generallcdgcrs., check regislen:, lrial
bal:l./1<;C'>. clLSh receipto cull rt':l;cipts dala, sales journals, purchases
journals, sales invoices, mcmos. vcndors' invoices, .salel rtpOns,
accounls receivablc :.ginll accounls payable aging anal)'$i\, inlerim
sl.alcmenL... periodic sales n:pons, reponing packages, business
plans, budgets, cash flow ...:pons, physIcal invcmory coonls. and financial
stalement projecliuns;
L Documents sufflCienllO identify aillucali""" al which in"enlory was
ma.intaincd al any time durinllM period Jnnuary I, 2OO71hroogh 1M preamt.
including. bul ""'!JOllIed to: (I) fa<:ililia leased byQSGI; aDd (l)lhird-pany
aonge facilitiCl at ",ltklt lovenlOr)' "';IS maimaina;!;
J. Documents suflieieollo idmIlfy all inventory maintained at any poinl in time
.. each Iocalioo in anP'erto Request 0;
K. Doeumc:nI.s sufficient to idmlify. (I) !be Inventory 'lOki at a ... referenced at
r-21 orQSGrs Form lOoK for the fisc.al ye:u ended Deamber 31, 2008; (2)
the ploceeds from each item tokl; (3) !he loss taken on each item sold; (4) the
date(s) of purdlase and sale; IDd (S) !he identity and last u-ou eontae1
inromwioo for Ibc purchaser oreach ilem sokl;
L All documents concl:lnin& 1M purported pnc1JC.... by a
leading OEM rcfamced at 21, 23, 26. aod F-21 orQSGl's Fonn lOoK
for tM flSCl! )'tar ended December 31, 2008lhat signif1UD1ly m.p.;lcd on !he
illdusuy'. ability to n:marI:et zScrin mainframe compuler equipment;
-J-
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 6 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 6 of 12
M. All documents concerning how Ihe anti-rompelitive practices referenced in
Request L impacted on QSG1's financial condition.
N. All documents concerning the underlying reason(s) for lhc increasc in QSGrs
inventory reserve of5200,000 referenced at 27 ofQSGrs lorm lOoK for
the fiscal year enlled Decemb<:r JI. 2008;
O. All documents conccrning QSGl's taking an impairment charge of57,206,698
referenced at page JI of QSGI'. Fonn IO-K for the fiscal year ended
J)e,:,:mber 31, 2008;
P. All docnment. coneeminll QSGl's monitoring and analyzing inventory
allowances for excess, slow-moving, and ob",lete inventory during the period
January 1, 2007 through the present, including, but oot limited to: (I) the
identity of all petOOns involved in each inslllnee of monitoring and analysis;
(2) the dates on which monitoring and analysis occurred; and (3) all resulting
analyses;
Q. Documems snllicient to identify all customers of by name. ooliTe,;".
phone number, and eontact or representative during the fiscal )'('ars ended
December 31. 2007 and 2008, respectively. and the percentage of overall sales
attributable 10 each customer,
R. Documents 10 identify all .upplier,; of inventory to QSGI during the
fiscal years ended December 31, 2007 and 2008. respectively. and the
percentage of overall purchases by QSGI in each year al1ributahle to each
supplier;
Documents sufficient to identify all agreements with Wells Farg<l, including.
but not limited 10 any cre<.lit facility in effC(:t at any time during the period
January I. 2007 through the present;
T. Copies of all agre<:ments with Victory Park, including, but not limited to: (I)
Securities Purcllilse Agreement; (2) Senior Purchase Agreement datw
on or about Junc 5. 2008; (3) Amended and Restated Soxurities Purclw5e
Agreemcnt dated on or about July 10, 2008; (4) Senior Secured Term Note
datoo on or about November 17, and (5) Secoml Amended and Restated
Securities Purchase Agreement on or about December 31. 2008;
U. All documents oon.cming the calculation of the borwwing h:u;e under any of
the agreements idemifie<l in Tespons<: to Requests S and T;
V. All documellts concerning all communications with or concerning Victory
Park. including, but not limited to: (I) notifications of the borrowing basc; and
(2) an cmail communication by QSG! tel Victory Park in 2008 informing
Victory Par\: of QSGl's interest in writing down existing inventory; (3)
and. Victory Park's forwarding of said email communication to Roben
VanHellemOnl.
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 7 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 7 of 12
W. AU documenlS CCJnCCmillJ!he malerial .. m QSGl's intcrmol alfllrol
0\' financial lNt led man;agcmcm 10 axlCludc: thai il$ disdolW'l.'
control J'fO"I"Iun:s ..-".e "noc .. .. of Decemb. ) I, 200$, '" i,,.hcMOd
aI p.agc 34 ofQSGI'1 FOl'TII IQ-K forthe filall year mdocl Deambc:r Jl, 200S;
X. All documcn15 cnnceming all communieauonl between tor ilmOng QSGI :lnd
Rubin13mwn l.t.P andlor Morison COllfll LLP eos.. or iIJl10ng
cOfII:m\ing QSGI dlllinl& the period January I. 2008 through the pn.'$\.'Tlt,
including. hut IlOl limited to: (a) internal cummuniations within Morison
Cogen; (b) oommuoiCalKlllS with MoriIon Cogm: and (c) commUlUcaU(NI$
.....Ih or involving all other third parties. .. broken, deal...... in\"estment or
odln bankera, tllStOmCn llId!or suppliers of OSGI. cmtilOn of QSGI, and
Kinetic:
y, AU doc:ltmml$ u:rcw;anin&QSGI's m outside audItor in 200S; and
Z. All minutc:a, resolutions. llI1d other documcnts generated by or distriblllcd 10:
(1) QSGl's Board ofDireclOri /I.IId any rommille<: thereof, including. hlll oot
limited to, the audit eommiuee and compenJ.ll.tion cQmmittee; Or (2) individual
members oflhc Board ofOirttton or a wmminee in their capacity as
mnnbera lhereofduring lhe pc:riod Janu<ll')' I, 2007 throu&h lhc: present.
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 8 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 8 of 12
SECURITIESAND EXCHANGECOMl\'IISSION
Wa.llialtoo, D.C. !Os.t,
s..pph-mnllal lnformatioo" for R",Uht'" to Suppl)'
I "'"rmooo,, Vlllu"laril)' or lJlrltd 10 Sopply Inforn,uion
I'orsuanl to a l.:oml1liuion Subporna
SDction 1001 of Tille 18 0Ilt-. UnitIId Stain Code prO\'ldel. .. I<llk>ws:
""'-,. in....., __lt-.juI ...
...., -..... 000 :,_ up by.....,h:l<. _.or clinice. "'IlIIIII1Icl. or .....
lictitloutorlr__' ....GOII....__ioo... OI .......
It-. ....... '" concair>....., WH. or lI'olldullnl or....,. _ t>Ii WIed ..... IhiD IitIa or
imp<WorIId I1DI """olhln ... YN'S. or _.
TOlllmony
If your leIlirnony IIlakon. you ahOuld be IW;U. of th.loIklMrlg:
,. Rotd. V_ will t>Ii lranso'(Jed by. reporw. "you """'" 10 00 ottlhl -.s. plMse 0""'" !hill to IhI
CoiI.I . ...-npI<IY".I3llIng,.... I ...... "'. whowill"""",,". Ar.e,,* togranl,.... Tho lepoI1el willnoc 000/1
__ .. ""..-.
2.. eo...- YOU_u-. KtXAI...-...... -.cl1l'lCl ad'wIMd byCXIUI"IMI of,....lhlooL
lICMIeyou bcikn. during n'"'fOOl I r I"'". QIJ Iyou at _ c:oroc:b:ion of'fOOlIMI I"''' 110 dIrIy....,of
II'lli ."_1you Pduring l8AnIOfIY; 1I'ICl ....... .............-y..- dln'll 'fOOIlMr-"IY..-ey lor)'OUf UH." YOU.'
by C<IUR$II. you may prt.elIIy.
_IheCommluion empklyeolllkiogyourla1lmooy __<'luringyour
tes!imony you dlSirllO IlP'lIlilhld and otdYiMd by ""'-"lSIl, Your 1M1i""""" will be adjco.lmId 10 """'d
you ... oppotlurOty 10 .,... 10 dO SO.
YOU",.,.W,. iII_l*S"'"4oMll.1din hC..." I i .." ......Iig........ 'JNiI,
....... '... ', . '.I>ll I' po 1tI Q:lI"IIlir;l:of_1I...........sII or....,.W_1IO
--...you.. I "'IlI_PI'WOI.alocl\ed.. h .... "g hCaI.1
wiII ......_you ...... .._COi_."iQP ..coo_at lhcdlOice
of 0CUISIl1l'lCl 'IhI1_od>lIlI;, lor ""a.o.;.a.;. "",".
3. ....1 I""'. R..... ' '" IhoI Oomm....,.,s RuIIIl'Wating 10 llM'StigalIona. 17 CFR 203.6, rt.Il...:
" per..,., wflO "as $ubrnftll <loc\.ImI!'IUiry O\IklenCl 01 testimony In 0 formAl Ir\ve$tigart-l pr..-linI,J IntIll be
1<"JIilIl. upon _en to II CllPV oI lIoI;:umenIary 01 all'anscript oIl'IiIlestimony on
payment 01 ... appr<lllriablllDs: /lo(:>wll ThIlIn a """llUt* IormaI "'.rlg , .. pioc..di"\1 ltII
Comol : .",.,.lorgood In...,--.....,.. uponpropli Idoooilitlcalillo. __
IhI rigIlIlOinIpKt h oIicial of h...-own ""'I"'IY
lyou -'>110 lI'II of.,our I I"'",.....epor1If .... 1If<l"'idiI 'f'OU"" .copyOl ...appr ......
torm. "*to. *l'..1Id 110 "4'PIY.""_I-..-iy"bllIIowed 'IhI pOOOOOld bV_....
. PIt;Jry. SecIion II!l21 at Tille ,801'1h1 UnIled StaleS CodIpooidlt _laIows:
WIIoeYI< .. t\DYIfIg 1aJ<en., 0Ith l*llrIa compelant lritlunII.llIIicer, 01 PIQOf1, in..., CUI'" ANch , ....-01_
IJnjted S10181 authOrlZlllW'i 0Ith 10 be IKlmlnisllHed, thai I'll .... l8IStifv. o;ltciafo. depoea, Of cenifylnJJy -Mllt\llly
IIl"od eonlflryto IUCI1 0Ith SUIIelI 01$Ubectlbes Drry mller\el rTIlllter wI'IlcIl '" dOeS IlOl bIIlevIlO bI trill 18 gIiIIy
oIpe<jJryIl'lClIlhlll, UCIPI __Ia. p<M&Iy prOYidDd l:\'I'la"-,bI intd _thiI titlIOfimprisonad nol mQII
II'IIn ... ,... or bolh
SEC IIl1S2 (s.<W)
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 9 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 9 of 12
!. FlfI/l AIl _or_VcolIIIiIf)' T, f .... ,"*",,-yougwmaybJi uJed JOWISl you In...,........ _. _ ..
knign_ IJt gMI .. <;BninIlllOOCM<ii", twoughI byllwCoo ! .. - ---
YOU may _.In dJii ... *'... rigtWlf go..-.--:IIDyou by'" ............ 0 .... CID'" e..-aonerlN
s-.tog;.. ...,. if"'" _ may.., ID ..... _ you .. you It> b. penIIly .. 1DrlIiiIln.
Myou"ltiiaio r ID . n
you may "Ml you -.Y.... ODOP8i.lIOt flo e 1lPP' '.
s. Fotmal AwIiM>ility.lIlhoi Cotnfl>lss;on ha __uod. formal Dtderolifro.olstigMion. RMIl bJi._to you d\IIing rou
*,Iimooy, II rour Myou ck!$tIe e copy of tr>e tormel on:ler. ple... meke rou ,equeel In wri\I"'J.
8<lbmUlonl Itld SIlIlemenu
RulI erllwCoo, I e""'' on InIoImai n 0It-.1'roc:ed<nI, 11 CfA202.5(e)._:
Penon!;..too bJi<::o." __in . In- l.fgJlig .1nI'f.onlhlir own II ....emit _ ...... lDb
eon... . ""*'llb1"l i __..., poeifon III NgM!1D ...- 011 rig..-... Upon
...-. .-.in;a; mayliMseSl.d'>llI' ...ot"'llIllI"lI..-.eolhi. ,' inclo.o*lg...
... ....,.pertIl'IlD ...... .., .. -.ner .... _....,.be.? '.. lor
so.O'''i(l'. priaolDb..... - .oIutllll.........dMii;o.IO..COO..' .IOrINOCOC __.....
er .. ldln._ polcee<i<og.S' f .by_
'""...... _ 0MIiI;In 0ir1lc:llDr. AIglonII 0iri0:l0I [lIJ;frir;t Ao;h """, will. CCIPY ID IIw SId If"''''''
COI'lOuC'ling!hl ihOUkl 111-'" ceo to IIwepec:lIie"'-liglliotllOwt.:Il 'Ihey ..... In
1hI-n. rec::onvnendllioo lOr IhI oommencemonl 01 .. proceedi", ie by Ihe .!IIl. iiIV
iUbmiseioneby inlerNlldpoe<eonI WIll befc<war_10IhI Commiliion Inconjunctionwi1I'llhiltall """""'...,.,."".
ThI,U1I1Ofltll CommiNiM to pureuetlttoRule 5(e) inCommission
.,iIorceo.IIOI...OOIIdiolOl.
RulI5(l) cllfll eorrv- RINIonlr*lrrneilllld 0llM 11Cf1'I202.$(I)._
In 1fII 01 Coo ubn'.h=lIgaIioo. gMI." IIld poOC..di"g tall, ....
............ _ -.:o1zIIion.....,. _ persoo-. ed..... H)O, cl-..::tl..-. by _ .. by
_ ........ In__............... pclic:yol ...COO'.. . .. 11:: ........_F . "01...,.Judl
..-may......... ?1 .. ... IIII' ..'-beIIl, ..maybll.bIoughIlgIhJt
.._.....,.""*"......'espICll_.A<x:oodily, ..&ibceo'....
_-...c... J ."""''"'"_i5,.....IO..... ......ordJii"cloIIIOJdelrblfll
1""PfIM00.eooMI'lIlhIclwnIlQIi'lsIllomin""'.... ".oioilJlliili,...-.-.dnollor1he JlUfPOIII
01 <e$CIwing II'iYc:riminaI dIargeI "'" hive be&I...mlglll bIl. brought IgIir>el 1Wn. Thill policyreII&:ls1he IIoclIhal
ltsltallhielhe ll1Ihofify..fIIPO"SIWilylc<in&liMlng.oon<lucIIng.MllIi1g... oIhII ....
dlJ;poslng or prooeedino,. That eutho<ltr IIld ,espo.-.$lbIIily If. 'ffl$1ed In !til AtI..ney a"""'e1 end
rop<esentIIllvee0I1hIt Deparlfnem01 Jvslicl.
f.-n011 Inlom'IalIon Ac:l
ThlF,-..oti", t ............. otWormllicnIO..p.bIc.RulI
1300f11c.. ; 7
............. _'_IONCOO It.nol bIl ... "_."'-"FOIA. ThaI _lhJIno
1 n.-.....IO..-.Ii<ilyol_. __wilbI_..... oIfII ihofOlA
1Il'1( .d.' diiy,. no __10. __..-..on bIl,.," ..' FCIAi& -'IfY""bIl
ot- __IOr-.. ...- FOlA.. -oOlIlyou &doiC"Ioi1gotelfilOliplol,.,.. __
1I'oil llDlbI FOIA..lllMIepooo\dll."''P'"" ....
.-..elope.
AulI>Oritt lor SoII;J_, ct lnlorrnMion
PtncmDi'BC/J roSupplyInfo<mll!iooPunuanr roSubpcw>e. Theau1hOfll)' lor jlfoduc:aon ct moon,'ioniii emIorth
In ltIIlIU!>P<>ena: OiIcloeurect1he lnforrneIiontothe CCrr\rrIiIsion i&1fIIfIdI10l'j, eob/8CllOlhevllid '" 'liDo. 01 iiIVi&gIl tIltJt
.. ptMlege roo hive.
Pei... .. _of"'+ '", ...oJ .-.ooialIheCcm" I .10
oo6oi III",*"",,,*,",,*, I, s.:... "indio<2001... S<e<::>.niNAc:l0l , lD:I; s-.21 01.. Eller......
"",,01 '934; Sidon 1 01111 r ... -...."""at It:. Sidon qer",ln "b''''. Coo....... Ac:l oIllMO: s-.:lOll
,
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 10 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 10 of 12
01 '" IlMlStmenl AOY>HtI Act 0I11W.l; ..-:117 CfR 202.S. lliIdoII.Q 01 '"""l"518d intonnoIIon 10 '" CommII3"'n Is
voIunlwy CIO'> 'fOI." pr,rt
EIM:t 01 HoI &.ippIJlI 'II Io'l/IormIlIotl
....."WII:UoPl.nu/lnfI(l"''' ...W'lOUWlOc:otrVt "'''!I;Qgeo..'"Corrv::t 'e!pn ""'Y
....courI_ 'IOU lOdOlO.' sudl .. _ Is I'W ..,. floiIlO""PP'f''''inIonnDon. I'W
may be lOeM f/NJIOI c:nminaI ... _ .lot_.'1jlI0I0DUIt. In IddioIi<A INSlotlpOlltllo _..,.,.., pI.il'SUWllO
.. .-.d
if you. """')Ml-. III or ..... lO _ II'Id ...,.. CO' lO __...ui'oquoy. CO' lOprocll.a bocb.. plJptta,
W, ...... _a.IfIIfO'IOt...-lI'Idoe..._..w, iCI llt>poeo.. ...
_Ined not_..... 1ar oIInoc _.,... CO'-.
,.._.. ....." ..... .. II'Id....
.. CO' _ "*>nNIioln.
P,hc;p.l uu. 01 ..." Ill: ,
,"",cam- '...ioooipllfUpOte.... _... ..." f ,lIlOgdw_"'_1I:I1 1 "."""'*'*_I*SO"
! ,
hw.oIco_... ....... ....'IIeo.d.
f __11:,.'....,.IIo,. Wl I" _=1 I .",__orNlla.trdoronalion..ooidood....,be.-inCorrv::t...,..
__lIQ"q....O."...lI.......-..... 1 ,orbllolle>+**JyV-1I:IIMDDflIr..,..wrling. you
b/'lOUId not.,.,.... _1IlIt or lis _ N'QII In.. Ie' 11:1. Of COfICUI'Il Of'" wrth. _ po U'>,.
wodiloo,. fequeI\,' III .eliol' 01 tighI, Of __.. Il\bl puporU. or may be _,lell.lObeor lO
,_.timflUOtl upon 1IlItComtnission'o or ,-*>n.1n boC>l:OfdanobWllh .... IItw.
0I1nfomIaIlon pocwldod.
IIoullroa ...... af Infotmallon
n... CommoHionoft", tr'IAkes itsfiles ovailBblo10_1)O"*00'lfK1111ltge1IOo5, paIIiculoIIyUniIfld Stilt..AttarMylInCl Itble
prDMCUlOro, byyouwillbemade ovail.bIeto$uch.g",cieI_rllllppropr!ate,
WIlIIII'oar or I'lOl Commiuion mal<fl its hi... "vai_1Oolhtt (lC/V9fnonent&l-slencies Is. in ganor", .conIid*ltial
_0Wl.1e Commiaaion and .ucho!he< gove,nm",talageociN.
SIM ront> it. hoC oIlhe tOOIine "'"wIlicn rMy be mao. of 1IlIt Inlarmalion turnistled.
1. To0lICIf<lifIewlaw.. 'k>o;emeI aclMtiNbe-.1toI SEC..-:I Olhor '-<leraI, stat. 1ocaI Of bleognlaw.. "coo,. 1IgenCiH.
...."""illN.
2. BySfCPM'$OfIIIelfarp.ltpOHlol.....ug.aungpooa..... oIcIeIiooll by, INloKIIfal
...,..--.
3. __........ ifodlcali<li. 01. Of ...- I F: ,01'-'-. _ .. c:MI, crimifIaI Of <egl"Mary In _.lind
.,_-.IaIng bl"gMIefIIIl_CO' parlIiaJIar progr Of bI" rego1 f>1, "*Of order....., po.nuam.........
_ l8M""""""'.r..... _ ... _.or_.""-Igrl
aMIoriI)'OfIonllgnMClriliN........,.,Of. ,.... c lIitiioty
01.. '''''''llOf I t .....*"di'llOfIrl'4l'fllo' ....'II ... _Of '"9 ,",.>'Of_
......,pwa...r.......
4,."1fIYPO_llI-''''_M<VllIiN _ ........ CO' "'_II!eCoo,., . I, Of PeMOI po-.. ".,WI
Cf .. SlIIl, II i*!I" Of". is. """'Ohed .... ClII*iIY
To._"'_,_OfloNv>"'-"'."-.oriIyorlonllgn-..-aMl<:fty",__oIilllcM.(r\mif'IIIOf_
-........,.............-..or_,.tif._ _.a.n.nrtita if,. ry1l:l0l>&*0*"" .
'-'1I:I"1IIIl"ftC'l' lIOCiIooo, COO"".llI'" t.n;J Of ,_ , 01 ...'CliO_.... of"""""" dl' .iCI ....
iIUnlI of. con&"&Cl. or .... __of" tita1!e. gr... CO' _ llM'loIk
6. To" _ _. _ Of IonIIgn go... ,. o\IIlll/f'lcln\)' or IonIIgn INClriiN-.orlIy ''''JlOO _ 10 1Ia In
_ l'Iimgor'_.... 'of.. """*',w.lI!e......... af .-:uriIy I 1l "''IIaf.... ,_
oil ,1Illo "'1Iain; '" con&"ea. or II!e iIIsuerOA01 rar-. grin! CO' ..... I>-.8IiI bI" 1IlIt """""",. 11:1 1IlIt
-..- ......... _.... &'J'1I:I INteqo Ilf 1lI11UM""f1 deCiooon "" ""' ..........
7. In _._, willi poOCMdlolQll by ilia Commosooon Ptnl*IIlOFbM 102(., '" its RoAN oIl'I'&CIIC1. 17 CAl 201 102(10).
,
Case 9:11-cv-80880-KLR Document 44-3 Entered on FLSD Docket 03/12/2012 Page 11 of 13
Case 09-23658-EPK Doc 211-1 Filed 02/02/10 Page 11 of 12
.. _ W/iIIIidIIi+d_...... _.'-' in IhilsytMm rMy bot dleckl ; 10. ber "'I ho'" InIliIuIe III
""",OtOOO:JiotI!I-.ont/.
7 .. ''' .. ,Ot ... ego"ll'Qry-.orily..b".ig..........-.."'p H ..
.......... __._... tig__ .-.otIly.
1UIhcrilr'. Ot by 1 SIIl..-.g.-."y in.aw.g one Ot /I'"lOI'O III ita ,..,obML
10. AI. data!MlU'CllOt InIOtmnonlOt piOduCllotl ot"""'"""'YcIIIcripliYe ,1IliIIlcI tnd in
IOJPPOtIoI "'-!\Inc:Iion1or wl>idl1lle-ot lUecollectedtnd mainlllinedOtIOt fIoI!l*I mltllgemenlluo'lclionlOt
mlnpowe<ltudies, ...... ,0 respondIOgoIIlIfll 'eIllNS1llor I1atiIticll inIormmion (wiIhout P&'aoneIldentifioalion ot individuals)
lI<Ider the F..-oj lnforrnMion Ad0110locate$pOCIIIo; IndMOuIIs 101I*IOIII'Iel ,_d101 Olt>er pe<somellJllNlglmeot
.......
11 roOOt.liOI, with ... and .........'.'I'iIIPOI.. 'f .....-.:I tJylN**1l1llClri:ies ..... (II de"*'
.. s-.3(aj(.1)otIhe8eQri:iel Eld."",Adot 1llG4. 15U.S.C. 78c(aj(.7I).0t'-0t7DNlgn_,"lI'" 'II"""
Ot __--..-...... tlerJildoMr'to, ..... 1M' ......,.; "-'IheCOl,.,7;
.... 1UemaIIlng!loln:l s.a...- r. IllO! PI_,CotpOtaon. ...,... _Mig-..toOls
inc:IJding bulno1 *"-db..... lkM1lIllGowo' oI ..."-.ln .. sv-n...COl' ot .... eurr.q.._....
..... ib'''.I''''''''''''Ot'''ijIIi'''-'''''''''"'II'ow.y
....ib..'.II9IO...... ot. blIignll<"'""'"'.iI.""blIign _-.oriIy.
12. To r.y WullM. ,""*"",,, ...... "" indMcluaI "".-.lily __1PIlOio'!+d by. coo.wl 01 00IlIP"l+n
juIbdictioo, "" II ,+lUll 01 an aoo_ _, ...' .... pwIieI in COl' -:!ion with "" +Clmnistratlv+ pioe++db'OS
inooIvinOaneoatlonl ot 'IioI+tionI 0111.- r.owat $OCUri\ios '-_(at <leIin+d i'l Soction J(a) (.71 0Ilh+ Securilin Exc:I'Iar'IO&Ad
oj 1llG4. 15 U.S.C. 780(1)(.7Il Dr 11.- Commission', nuiN01 Prac1ice. I 7CFR 202. 100 900. Of 0Ih+rwlse, whet,d", usree
.........., """'t.... fI)fClaI oounsel Of _ individual 0/ it opeciIicoIIy l<I perform pet\iculIt funcIionI wilh
'-'10, ""_. result 01. tne ..dog .aion Ot "" in "",.l+<;1iol, wtlrl1hlo adminitlr,1>On _ ....... CImInt by
It>e Conwn;ss,onol ... _ .. Ha.WllioM'"-",,"'COIN,' bo', fIlJIIoI 01 PI'_.
11........,. m.,. bot _II;>. Congrlllicnal-. hlm... record 01 .. ftfMduIl in , __11;> ........., __...
CongressionaIOIIoI_II...
to onQIIirieslrnm Io4tmbIrI oj CongI_, ... preu and ... PUI>Nc lOhicto ,_totpIQfic mllt.... !hIl11he
CommIssion hIIlnvIt!lgaled l\I'ld to mlltlQiJnde< ltleCommiltion', joIIIdidlon.
20. Toprepar..nd publishInklfmltion ,etllri..... toIIioIatiooI oj!he _aISOCIIIiIies laws as proYICIed In 15 U.S.C. 78c(1) (471).
-_.
21 To respon:lll;> .. ollpowIas In.., IiigtIQn ""_pl""'-'og_
22.