doc_id
stringlengths 1
2
| id
stringlengths 5
6
| ner_tags
sequence | tokens
sequence |
---|---|---|---|
13 | 82491 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"or",
"services",
"or",
"meeting",
"of",
"any",
"specified",
"performance",
"conditions",
".",
"Since",
"under",
"the",
"new",
"hierarchy",
"a",
"fair",
"value",
"for",
"each",
"element",
"will",
"be",
"determinable",
",",
"the",
"residual",
"method",
"is",
"no",
"longer",
"used",
".",
"To",
"determine",
"the",
"selling",
"price",
"in",
"non-software",
"multiple-element",
"arrangements",
",",
"we",
"establish",
"VSOE",
"of",
"the",
"selling",
"price",
"using",
"the",
"price",
"charged",
"for",
"a",
"deliverable",
"when",
"sold",
"separately",
".",
"Where",
"VSOE",
"does",
"not",
"exist",
",",
"TPE",
"is",
"established",
"by",
"evaluating",
"similar",
"competitor",
"products",
"or",
"services",
"in",
"standalone",
"arrangements",
"with",
"similarly",
"situated",
"customers",
".",
"If",
"we",
"are",
"unable",
"to",
"determine",
"the",
"selling",
"price",
"because",
"VSOE",
"or",
"TPE",
"doesn",
"t",
"exist",
",",
"we",
"determine",
"BESP",
"for",
"the",
"purposes",
"of",
"allocating",
"the",
"arrangement",
"by",
"considering",
"pricing",
"practices",
",",
"margin",
",",
"competition",
",",
"and",
"geographies",
"in",
"which",
"we",
"offer",
"our",
"products",
"and",
"services",
".",
"Unbilled",
"receivables",
"are",
"created",
"when",
"services",
"are",
"performed",
"or",
"software",
"is",
"delivered",
"and",
"revenue",
"is",
"recognized",
"in",
"advance",
"of",
"billings",
".",
"Deferred",
"revenue",
"is",
"created",
"when",
"billing",
"occurs",
"in",
"advance",
"of",
"performing",
"services",
"or",
"when",
"all",
"revenue",
"recognition",
"criteria",
"have",
"not",
"been",
"met",
".",
"We",
"believe",
"that",
"our",
"revenue",
"recognition",
"practices",
"comply",
"with",
"the",
"complex",
"and",
"evolving",
"rules",
"governing",
"revenue",
"recognition",
".",
"Future",
"interpretations",
"of",
"existing",
"accounting",
"standards",
",",
"new",
"standards",
"or",
"changes",
"in",
"our",
"business",
"practices",
"could",
"result",
"in",
"changes",
"in",
"our",
"revenue",
"recognition",
"accounting",
"policies",
"that",
"could",
"have",
"a",
"material",
"effect",
"on",
"our",
"consolidated",
"financial",
"results",
".",
"Accounting",
"for",
"Income",
"Taxes",
"We",
"recognize",
"deferred",
"income",
"tax",
"assets",
"and",
"liabilities",
"based",
"upon",
"the",
"expected",
"future",
"tax",
"consequences",
"of",
"events",
"that",
"have",
"been",
"recognized",
"in",
"our",
"financial",
"statements",
"or",
"tax",
"returns",
".",
"Deferred",
"income",
"tax",
"assets",
"and",
"liabilities",
"are",
"calculated",
"based",
"on",
"the",
"difference",
"between",
"the",
"financial",
"and",
"tax",
"bases",
"of",
"assets",
"and",
"liabilities",
"using",
"the",
"currently",
"enacted",
"income",
"tax",
"rates",
"in",
"effect",
"during",
"the",
"years",
"in",
"which",
"the",
"differences",
"are",
"expected",
"to",
"reverse",
".",
"Valuation",
"allowances",
"are",
"recorded",
"to",
"reduce",
"deferred",
"tax",
"assets",
"when",
"it",
"is",
"more",
"likely",
"than",
"not",
"that",
"a",
"tax",
"benefit",
"will",
"not",
"be",
"realized",
".",
"Deferred",
"tax",
"assets",
"for",
"which",
"no",
"valuation",
"allowance",
"is",
"recorded",
"may",
"not",
"be",
"realized",
"upon",
"changes",
"in",
"facts",
"and",
"circumstances",
".",
"Tax",
"benefits",
"related",
"to",
"uncertain",
"tax",
"positions",
"taken",
"or",
"expected",
"to",
"be",
"taken",
"on",
"a",
"tax",
"return",
"are",
"recorded",
"when",
"such",
"benefits",
"meet",
"a",
"more",
"likely",
"than",
"not",
"threshold",
".",
"benefits",
"are",
"recorded",
"when",
"a",
"tax",
"position",
"has",
"been",
"effectively",
"settled",
",",
"which",
"means",
"that",
"the",
"appropriate",
"taxing",
"authority",
"has",
"completed",
"their",
"examination",
"even",
"though",
"the",
"statute",
"of",
"limitations",
"remains",
"open",
",",
"or",
"the",
"statute",
"of",
"limitation",
"expires",
".",
"Considerable",
"judgment",
"is",
"required",
"in",
"assessing",
"and",
"estimating",
"these",
"amounts",
"and",
"differences",
"between",
"the",
"actual",
"outcome",
"of",
"these",
"future",
"tax",
"consequences",
"and",
"our",
"estimates",
"could",
"have",
"a",
"material",
"effect",
"on",
"our",
"consolidated",
"financial",
"results",
".",
"Accounting",
"for",
"Stock-Based",
"Compensation",
"Stock-based",
"compensation",
"cost",
"is",
"measured",
"at",
"the",
"grant",
"date",
"based",
"on",
"the",
"fair",
"value",
"of",
"the",
"award",
"and",
"is"
] |
13 | 82951 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Compensation",
"Stock-based",
"compensation",
"cost",
"is",
"measured",
"at",
"the",
"grant",
"date",
"based",
"on",
"the",
"fair",
"value",
"of",
"the",
"award",
"and",
"is",
"recognized",
"as",
"expense",
"over",
"the",
"appropriate",
"service",
"period",
".",
"Fair",
"value",
"for",
"stock",
"options",
"is",
"computed",
"using",
"the",
"Black-Scholes",
"pricing",
"model",
".",
"Determining",
"the",
"fair",
"value",
"of",
"stock-based",
"awards",
"requires",
"considerable",
"judgment",
",",
"including",
"estimating",
"the",
"expected",
"term",
"of",
"stock",
"options",
",",
"expected",
"volatility",
"of",
"our",
"stock",
"price",
",",
"and",
"the",
"number",
"of",
"awards",
"expected",
"to",
"be",
"forfeited",
".",
"In",
"addition",
",",
"for",
"stock-based",
"awards",
"where",
"vesting",
"is",
"dependent",
"upon",
"achieving",
"certain",
"operating",
"performance",
"goals",
",",
"we",
"estimate",
"the",
"likelihood",
"of",
"achieving",
"the",
"performance",
"goals",
".",
"Differences",
"between",
"actual",
"results",
"and",
"these",
"estimates",
"could",
"have",
"a",
"material",
"effect",
"on",
"our",
"consolidated",
"financial",
"results",
".",
"A",
"deferred",
"income",
"tax",
"asset",
"is",
"recorded",
"over",
"the",
"vesting",
"period",
"as",
"stock",
"compensation",
"expense",
"is",
"recognized",
".",
"Our",
"ability",
"to",
"use",
"the",
"deferred",
"tax",
"asset",
"is",
"ultimately",
"based",
"on",
"the",
"actual",
"value",
"of",
"the",
"stock",
"option",
"upon",
"exercise",
"or",
"restricted",
"stock",
"unit",
"upon",
"distribution",
".",
"If",
"the",
"actual",
"value",
"is",
"lower",
"than",
"the",
"fair",
"value",
"determined",
"on",
"the",
"date",
"of",
"grant",
",",
"then",
"there",
"could",
"be",
"an",
"income",
"tax",
"expense",
"for",
"the",
"portion",
"of",
"the",
"deferred",
"tax",
"asset",
"that",
"can",
"not",
"be",
"used",
",",
"which",
"could",
"have",
"a",
"material",
"effect",
"on",
"our",
"consolidated",
"financial",
"results",
".",
"Results",
"of",
"Operations",
"We",
"evaluate",
"performance",
"of",
"our",
"segments",
"based",
"on",
"operating",
"results",
"before",
"interest",
",",
"income",
"taxes",
",",
"goodwill",
"impairment",
"charges",
",",
"amortization",
"of",
"acquisition-related",
"intangible",
"assets",
",",
"stock",
"compensation",
"and",
"certain",
"other",
"costs",
"(",
"see",
"Note",
"12",
"of",
"Notes",
"to",
"Consolidated",
"Financial",
"Statements",
")",
".",
"During",
"2010",
",",
"we",
"sold",
"our",
"PS",
"UK",
"operation",
"which",
"is",
"presented",
"as",
"discontinued",
"operations",
".",
"The",
"following",
"table",
"sets",
"forth",
",",
"for",
"the",
"periods",
"indicated",
",",
"certain",
"amounts",
"included",
"in",
"our",
"Consolidated",
"Statements",
"of",
"Operations",
"and",
"the",
"relative",
"percentage",
"that",
"those",
"amounts",
"represent",
"to",
"consolidated",
"revenue",
"(",
"unless",
"otherwise",
"indicated",
")",
".",
"The",
"following",
"table",
"sets",
"forth",
",",
"for",
"the",
"periods",
"indicated",
",",
"certain",
"supplemental",
"revenue",
"data",
"and",
"the",
"relative",
"percentage",
"that",
"those",
"amounts",
"represent",
"to",
"total",
"revenue",
".",
"Results",
"of",
"operations",
",",
"excluding",
"broker/dealer",
"business",
"We",
"assess",
"our",
"performance",
"both",
"with",
"and",
"without",
"one",
"of",
"our",
"trading",
"systems",
"businesses",
",",
"a",
"broker/dealer",
"with",
"an",
"inherently",
"lower",
"margin",
"than",
"our",
"other",
"software",
"and",
"processing",
"businesses",
",",
"whose",
"performance",
"is",
"a",
"function",
"of",
"market",
"volatility",
"and",
"customer",
"mix",
"(",
"the",
"Broker/Dealer",
")",
".",
"By",
"excluding",
"the",
"Broker/Dealer",
"s",
"results",
",",
"we",
"are",
"able",
"to",
"perform",
"additional",
"analysis",
"of",
"our",
"business",
"which",
"we",
"believe",
"is",
"important",
"in",
"understanding",
"the",
"results",
"of",
"both",
"the",
"Broker/Dealer",
"and",
"the",
"software",
"and",
"processing",
"businesses",
".",
"We",
"use",
"the",
"information",
"excluding",
"the",
"Broker/Dealer",
"business",
"for",
"a",
"variety",
"of",
"purposes",
"and",
"we",
"regularly",
"communicate",
"our",
"results",
"excluding",
"this",
"business",
"to",
"our",
"board",
"of",
"directors",
".",
"The",
"following",
"is",
"a"
] |
13 | 83401 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"purposes",
"and",
"we",
"regularly",
"communicate",
"our",
"results",
"excluding",
"this",
"business",
"to",
"our",
"board",
"of",
"directors",
".",
"The",
"following",
"is",
"a",
"reconciliation",
"of",
"revenue",
"excluding",
"the",
"Broker/Dealer",
"and",
"operating",
"income",
"(",
"loss",
")",
"excluding",
"the",
"Broker/Dealer",
",",
"which",
"are",
"each",
"non-GAAP",
"measures",
",",
"to",
"the",
"corresponding",
"reported",
"GAAP",
"measures",
"that",
"we",
"believe",
"to",
"be",
"most",
"directly",
"comparable",
"for",
"each",
"of",
"2008",
",",
"2009",
"and",
"2010",
"(",
"in",
"millions",
")",
".",
"While",
"these",
"adjusted",
"results",
"are",
"useful",
"for",
"analysis",
"purposes",
",",
"they",
"should",
"not",
"be",
"considered",
"as",
"an",
"alternative",
"to",
"our",
"reported",
"GAAP",
"results",
".",
"Year",
"Ended",
"December",
"31",
",",
"2010",
"Compared",
"to",
"Year",
"Ended",
"December",
"31",
",",
"2009",
"Operating",
"Income",
":",
"Our",
"total",
"operating",
"margin",
"increased",
"to",
"5",
"%",
"in",
"2010",
"from",
"-11",
"%",
"in",
"2009",
"due",
"to",
"$",
"237",
"million",
"of",
"goodwill",
"impairment",
"charges",
"in",
"2010",
"and",
"$",
"1.13",
"billion",
"of",
"goodwill",
"impairment",
"charges",
"in",
"2009",
".",
"In",
"addition",
",",
"the",
"operating",
"margin",
"was",
"also",
"impacted",
"by",
"a",
"$",
"58",
"million",
"increase",
"in",
"license",
"fees",
",",
"the",
"impact",
"from",
"the",
"Broker/Dealer",
"and",
"the",
"decline",
"in",
"AS",
"margin",
"performance",
".",
"Financial",
"Systems",
":",
"The",
"FS",
"operating",
"margin",
"increased",
"to",
"22",
"%",
"in",
"2010",
"from",
"20",
"%",
"in",
"2009",
".",
"The",
"operating",
"margin",
"improvement",
"is",
"mainly",
"due",
"to",
"a",
"$",
"63",
"million",
"increase",
"in",
"software",
"license",
"fees",
",",
"including",
"the",
"recognition",
"of",
"$",
"32",
"million",
"of",
"license",
"fee",
"backlog",
"that",
"existed",
"at",
"December",
"31",
",",
"2009",
".",
"Margin",
"improvement",
"from",
"the",
"reduced",
"contribution",
"from",
"the",
"Broker/Dealer",
"and",
"reduced",
"facilities",
"expense",
"was",
"mostly",
"offset",
"by",
"increased",
"employment-related",
"and",
"other",
"operating",
"expenses",
".",
"The",
"impact",
"of",
"the",
"decrease",
"in",
"the",
"Broker/Dealer",
"s",
"revenue",
"and",
"operating",
"income",
"on",
"FS",
"operating",
"margin",
"is",
"an",
"increase",
"in",
"2010",
"of",
"one",
"margin",
"point",
".",
"The",
"most",
"important",
"factors",
"affecting",
"the",
"FS",
"operating",
"margin",
"are",
":",
"Higher",
"Education",
":",
"The",
"HE",
"operating",
"margin",
"was",
"26",
"%",
"in",
"each",
"of",
"2010",
"and",
"2009",
".",
"Although",
"revenue",
"decreased",
"$",
"23",
"million",
",",
"we",
"maintained",
"the",
"operating",
"margin",
"primarily",
"by",
"decreasing",
"employment-related",
"expense",
"in",
"managed",
"services",
".",
"The",
"most",
"important",
"factors",
"affecting",
"the",
"HE",
"operating",
"margin",
"are",
":",
"Public",
"Sector",
":",
"The",
"PS",
"operating",
"margin",
"was",
"27",
"%",
"and",
"28",
"%",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"The",
"operating",
"margin",
"decrease",
"is",
"due",
"primarily",
"to",
"a",
"$",
"5",
"million",
"decrease",
"in",
"software",
"license",
"fees",
",",
"partially",
"offset",
"by",
"decreased",
"employment-related",
"expense",
".",
"The",
"most",
"important",
"factors",
"affecting",
"the",
"PS",
"operating",
"margin",
"are",
":",
"Availability",
"Services",
":",
"The",
"AS",
"operating",
"margin",
"was",
"22",
"%",
"in",
"2010",
"compared",
"to",
"25",
"%",
"in",
"2009",
".",
"The",
"lower",
"margin",
"was",
"driven",
"by",
"the",
"lower",
"mix",
"of",
"revenue",
"from",
"higher",
"margin",
"recovery",
"services",
",",
"which",
"typically",
"use",
"shared",
"resources",
",",
"and",
"an",
"absolute",
"decline",
"in",
"recovery",
"services",
"margin",
"due",
"mainly",
"to",
"the",
"lower",
"revenue",
"on",
"a",
"relatively",
"stable",
"fixed",
"cost",
"base",
"and",
"costs",
"related",
"to",
"eliminating",
"redundant",
"network",
"capacity",
"resulting",
"from",
"the",
"redesign",
"and",
"re-architecture",
"of"
] |
13 | 83861 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"relatively",
"stable",
"fixed",
"cost",
"base",
"and",
"costs",
"related",
"to",
"eliminating",
"redundant",
"network",
"capacity",
"resulting",
"from",
"the",
"redesign",
"and",
"re-architecture",
"of",
"our",
"data",
"communications",
"network",
".",
"Recovery",
"services",
"cost",
"savings",
"initiatives",
"also",
"produced",
"expense",
"savings",
"in",
"2010",
"including",
"lower",
"facilities",
"and",
"employment-related",
"costs",
".",
"In",
"addition",
",",
"AS",
"operating",
"margin",
"was",
"impacted",
"by",
"an",
"increase",
"in",
"revenue",
"from",
"lower",
"margin",
"managed",
"services",
",",
"which",
"use",
"dedicated",
"resources",
",",
"and",
"an",
"absolute",
"decline",
"in",
"managed",
"services",
"margin",
"due",
"mainly",
"to",
"higher",
"facilities",
"costs",
",",
"primarily",
"utility",
"costs",
"related",
"to",
"cooling",
"due",
"to",
"warmer",
"summer",
"temperatures",
"and",
"the",
"addition",
"of",
"a",
"new",
"facility",
",",
"increased",
"employment-related",
"and",
"temporary",
"staffing",
"costs",
"due",
"to",
"an",
"increased",
"focus",
"on",
"service",
"delivery",
",",
"and",
"increased",
"costs",
"associated",
"with",
"the",
"redesign",
"and",
"re-architecture",
"of",
"our",
"data",
"communications",
"network",
"and",
"natural",
"demand",
"resulting",
"from",
"revenue",
"growth",
".",
"Also",
"impacting",
"the",
"change",
"in",
"the",
"margin",
"was",
"a",
"decrease",
"in",
"other",
"administrative",
"expenses",
"in",
"North",
"America",
",",
"including",
"reduced",
"bad",
"debt",
"expense",
"resulting",
"from",
"improved",
"collections",
"and",
"lower",
"professional",
"services",
"expenses",
",",
"and",
"the",
"decrease",
"in",
"the",
"margin",
"in",
"our",
"European",
"business",
"mostly",
"due",
"to",
"an",
"increase",
"in",
"employment-related",
"costs",
"and",
"depreciation",
"and",
"amortization",
",",
"partially",
"offset",
"by",
"reduced",
"bad",
"debt",
"expense",
".",
"The",
"most",
"important",
"factors",
"affecting",
"the",
"AS",
"operating",
"margin",
"are",
":",
"The",
"margin",
"rate",
"of",
"the",
"AS",
"European",
"business",
"is",
"lower",
"than",
"the",
"margin",
"rate",
"of",
"the",
"North",
"American",
"business",
"due",
"primarily",
"to",
"a",
"higher",
"concentration",
"of",
"dedicated",
"resources",
"in",
"European",
"recovery",
"services",
".",
"However",
",",
"the",
"differential",
"in",
"the",
"margins",
"has",
"narrowed",
"over",
"the",
"past",
"several",
"years",
"because",
"of",
"the",
"growing",
"proportion",
"of",
"managed",
"services",
"in",
"North",
"America",
".",
"Revenue",
":",
"Total",
"revenue",
"was",
"$",
"4.99",
"billion",
"in",
"2010",
"compared",
"to",
"$",
"5.33",
"billion",
"in",
"2009",
",",
"a",
"decrease",
"of",
"6",
"%",
".",
"Organic",
"revenue",
"decreased",
"7",
"%",
"primarily",
"due",
"to",
"a",
"decline",
"in",
"the",
"Broker/Dealer",
"s",
"revenue",
"of",
"$",
"403",
"million",
",",
"comprised",
"of",
"$",
"367",
"million",
"of",
"broker/dealer",
"fees",
"and",
"$",
"36",
"million",
"of",
"reimbursed",
"expenses",
",",
"partially",
"offset",
"by",
"a",
"$",
"58",
"million",
"increase",
"in",
"software",
"license",
"fees",
".",
"Excluding",
"the",
"Broker/Dealer",
",",
"organic",
"revenue",
"increased",
"1",
"%",
".",
"of",
"currency",
"exchange",
"rates",
",",
"and",
"excludes",
"revenue",
"from",
"discontinued",
"operations",
"in",
"all",
"periods",
"presented",
".",
"When",
"assessing",
"our",
"financial",
"results",
",",
"we",
"focus",
"on",
"growth",
"in",
"organic",
"revenue",
"because",
"overall",
"revenue",
"growth",
"is",
"affected",
"by",
"the",
"timing",
"and",
"magnitude",
"of",
"acquisitions",
",",
"dispositions",
"and",
"by",
"currency",
"exchange",
"rates",
".",
"Our",
"revenue",
"is",
"highly",
"diversified",
"by",
"customer",
"and",
"product",
".",
"During",
"each",
"of",
"the",
"past",
"three",
"fiscal",
"years",
",",
"no",
"single",
"customer",
"has",
"accounted",
"for",
"more",
"than",
"10",
"%",
"of",
"total",
"revenue",
".",
"On",
"average",
"for",
"the",
"past",
"three",
"fiscal",
"years",
",",
"services",
"revenue",
"has",
"been",
"approximately",
"90",
"%",
"of",
"total",
"revenue",
".",
"About",
"70",
"%",
"of",
"services",
"revenue",
"is",
"highly",
"recurring",
"as",
"a",
"result",
"of",
"multi",
"year",
"contracts",
"and",
"is",
"generated",
"from",
"(",
"1"
] |
13 | 84321 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"%",
"of",
"services",
"revenue",
"is",
"highly",
"recurring",
"as",
"a",
"result",
"of",
"multi",
"year",
"contracts",
"and",
"is",
"generated",
"from",
"(",
"1",
")",
"software-related",
"services",
"including",
"software",
"maintenance",
"and",
"support",
",",
"processing",
"and",
"rentals",
";",
"and",
"(",
"2",
")",
"recovery",
"and",
"managed",
"services",
".",
"The",
"remaining",
"services",
"revenue",
"includes",
"(",
"1",
")",
"professional",
"services",
",",
"which",
"are",
"recurring",
"in",
"nature",
"as",
"a",
"result",
"of",
"long-term",
"customer",
"relationships",
";",
"and",
"(",
"2",
")",
"broker/dealer",
"fees",
",",
"which",
"are",
"largely",
"correlated",
"with",
"trading",
"volumes",
".",
"Services",
"revenue",
"decreased",
"to",
"$",
"4.49",
"billion",
"from",
"$",
"4.84",
"billion",
",",
"representing",
"approximately",
"90",
"%",
"of",
"total",
"revenue",
"in",
"2010",
"compared",
"to",
"91",
"%",
"in",
"2009",
".",
"The",
"revenue",
"decrease",
"was",
"mainly",
"due",
"to",
"the",
"$",
"367",
"million",
"decrease",
"in",
"broker/dealer",
"fees",
"noted",
".",
"Professional",
"services",
"revenue",
"was",
"$",
"791",
"million",
"and",
"$",
"770",
"million",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"The",
"change",
"was",
"due",
"to",
"an",
"increase",
"in",
"FS",
",",
"partially",
"offset",
"by",
"decreases",
"in",
"AS",
"and",
"HE",
".",
"Revenue",
"from",
"total",
"broker/dealer",
"fees",
"was",
"$",
"217",
"million",
"and",
"$",
"570",
"million",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"was",
"$",
"380",
"million",
"and",
"$",
"324",
"million",
"for",
"2010",
"and",
"2009",
",",
"respectively",
",",
"and",
"includes",
"software",
"license",
"revenue",
"of",
"$",
"291",
"million",
"and",
"$",
"233",
"million",
",",
"respectively",
".",
"SunGard",
"ended",
"2009",
"with",
"a",
"software",
"license",
"backlog",
"of",
"$",
"35",
"million",
"in",
"FS",
",",
"which",
"consisted",
"of",
"signed",
"contracts",
"for",
"licensed",
"software",
"that",
"(",
"i",
")",
"at",
"our",
"election",
",",
"was",
"not",
"shipped",
"to",
"the",
"customer",
"until",
"2010",
",",
"(",
"ii",
")",
"we",
"voluntarily",
"extended",
"payment",
"terms",
"or",
"(",
"iii",
")",
"included",
"products",
"or",
"services",
"not",
"yet",
"deliverable",
"and",
"from",
"which",
"the",
"license",
"element",
"can",
"not",
"be",
"separated",
".",
"Of",
"this",
"backlog",
",",
"$",
"32",
"million",
"was",
"recognized",
"in",
"2010",
".",
"Financial",
"Systems",
":",
"FS",
"revenue",
"was",
"$",
"2.81",
"billion",
"in",
"2010",
"compared",
"to",
"$",
"3.07",
"billion",
"in",
"2009",
",",
"a",
"decrease",
"of",
"9",
"%",
".",
"Organic",
"revenue",
"decreased",
"by",
"approximately",
"9",
"%",
"in",
"2010",
".",
"Excluding",
"the",
"Broker/Dealer",
"business",
",",
"organic",
"revenue",
"increased",
"6",
"%",
".",
"The",
"6",
"%",
"increase",
"is",
"primarily",
"driven",
"by",
"increases",
"in",
"software",
"license",
",",
"professional",
"services",
"and",
"processing",
"revenue",
".",
"Professional",
"services",
"revenue",
"increased",
"$",
"50",
"million",
",",
"or",
"9",
"%",
",",
"to",
"$",
"583",
"million",
"due",
"to",
"a",
"general",
"increase",
"in",
"demand",
"from",
"existing",
"clients",
"as",
"well",
"as",
"new",
"projects",
".",
"Processing",
"revenue",
"increased",
"$",
"22",
"million",
",",
"or",
"3",
"%",
",",
"mainly",
"driven",
"by",
"increases",
"in",
"transaction",
"volumes",
"and",
"additional",
"hosted",
"services",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"included",
"software",
"license",
"revenue",
"of",
"$",
"237",
"million",
",",
"an",
"increase",
"of",
"$",
"63",
"million",
"compared",
"to",
"2009",
",",
"reflecting",
"the",
"recognition",
"in",
"2010",
"of",
"$",
"32",
"million",
"that",
"was",
"in",
"backlog",
"at",
"December",
"31",
",",
"2009",
"and",
"improved",
"economic",
"conditions",
"in",
"2010",
".",
"Higher",
"Education",
":",
"HE",
"revenue",
"was",
"$",
"571"
] |
13 | 84781 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"at",
"December",
"31",
",",
"2009",
"and",
"improved",
"economic",
"conditions",
"in",
"2010",
".",
"Higher",
"Education",
":",
"HE",
"revenue",
"was",
"$",
"571",
"million",
"in",
"2010",
"compared",
"to",
"$",
"594",
"million",
"in",
"2009",
".",
"The",
"$",
"23",
"million",
",",
"or",
"4",
"%",
",",
"decrease",
"was",
"all",
"organic",
"and",
"primarily",
"due",
"to",
"decreases",
"in",
"managed",
"services",
"revenue",
"mainly",
"resulting",
"from",
"customers",
"bringing",
"their",
"IT",
"solutions",
"in-house",
",",
"and",
"professional",
"services",
"mainly",
"due",
"to",
"fewer",
"and",
"smaller-sized",
"customer",
"installations",
",",
"partially",
"offset",
"by",
"an",
"increase",
"in",
"software",
"support",
"revenue",
"due",
"to",
"sales",
"of",
"new",
"licenses",
"in",
"the",
"past",
"12",
"months",
"and",
"annual",
"rate",
"increases",
".",
"Professional",
"services",
"revenue",
"was",
"$",
"128",
"million",
"in",
"2010",
"compared",
"to",
"$",
"141",
"million",
"in",
"2009",
".",
"Software",
"license",
"fees",
"increased",
"$",
"1",
"million",
"to",
"$",
"39",
"million",
"in",
"2010",
"from",
"$",
"38",
"million",
"in",
"2009",
".",
"HE",
"includes",
"our",
"K-12",
"operations",
"for",
"all",
"periods",
"presented",
".",
"Public",
"Sector",
":",
"PS",
"revenue",
"was",
"$",
"145",
"million",
"in",
"2010",
"compared",
"to",
"$",
"153",
"million",
"in",
"2009",
".",
"The",
"$",
"8",
"million",
",",
"or",
"5",
"%",
",",
"decrease",
"was",
"all",
"organic",
"and",
"primarily",
"due",
"to",
"a",
"$",
"5",
"million",
"decrease",
"in",
"software",
"license",
"fees",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"included",
"software",
"license",
"fees",
"of",
"$",
"11",
"million",
"and",
"$",
"16",
"million",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"Availability",
"Services",
":",
"AS",
"revenue",
"was",
"$",
"1.47",
"billion",
"in",
"2010",
"compared",
"to",
"$",
"1.52",
"billion",
"in",
"2009",
",",
"a",
"3",
"%",
"decrease",
"overall",
"and",
"organically",
".",
"In",
"North",
"America",
",",
"which",
"accounts",
"for",
"approximately",
"80",
"%",
"of",
"our",
"AS",
"business",
",",
"revenue",
"decreased",
"4",
"%",
"overall",
"and",
"4.5",
"%",
"organically",
"where",
"decreases",
"in",
"recovery",
"services",
"and",
"professional",
"services",
"revenue",
"exceeded",
"growth",
"in",
"managed",
"services",
"revenue",
".",
"Revenue",
"in",
"Europe",
",",
"primarily",
"from",
"our",
"U.K",
".",
"operations",
",",
"increased",
"0.5",
"%",
",",
"but",
"increased",
"2",
"%",
"organically",
",",
"where",
"increases",
"in",
"managed",
"services",
"revenue",
"were",
"partially",
"offset",
"by",
"decreases",
"in",
"recovery",
"services",
"revenue",
".",
"Most",
"of",
"our",
"recovery",
"services",
"revenue",
"is",
"derived",
"from",
"tape-based",
"solutions",
".",
"Recovery",
"services",
"has",
"been",
"shifting",
"from",
"tape-based",
"solutions",
"to",
"disk-based",
"and",
"managed",
"service",
"solutions",
".",
"We",
"expect",
"this",
"shift",
"to",
"continue",
"in",
"the",
"future",
".",
"Costs",
"and",
"Expenses",
":",
"Total",
"costs",
"decreased",
"to",
"95",
"%",
"of",
"revenue",
"in",
"2010",
"from",
"111",
"%",
"of",
"2009",
"revenue",
".",
"Excluding",
"the",
"goodwill",
"impairment",
"charges",
"of",
"$",
"237",
"million",
"in",
"2010",
"and",
"$",
"1.13",
"billion",
"in",
"2009",
"and",
"the",
"Broker/Dealer",
"s",
"total",
"costs",
"of",
"$",
"207",
"million",
"in",
"2010",
"and",
"$",
"556",
"million",
"in",
"2009",
",",
"total",
"costs",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"(",
"also",
"excluding",
"the",
"Broker/Dealer",
")",
"was",
"unchanged",
"at",
"89",
"%",
".",
"Cost",
"of",
"sales",
"and",
"direct",
"operating",
"expenses",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"was",
"44",
"%",
"in",
"2010",
"and",
"48",
"%",
"in",
"2009",
",",
"largely",
"the",
"result",
"of",
"the",
"lower",
"volumes",
"of",
"the",
"Broker/Dealer"
] |
13 | 85231 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"44",
"%",
"in",
"2010",
"and",
"48",
"%",
"in",
"2009",
",",
"largely",
"the",
"result",
"of",
"the",
"lower",
"volumes",
"of",
"the",
"Broker/Dealer",
".",
"Excluding",
"the",
"Broker/Dealer",
"s",
"expenses",
"of",
"$",
"189",
"million",
"in",
"2010",
"and",
"$",
"534",
"million",
"in",
"2009",
",",
"cost",
"of",
"sales",
"and",
"direct",
"operating",
"expenses",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"(",
"also",
"excluding",
"the",
"Broker/Dealer",
")",
"was",
"unchanged",
"at",
"42",
"%",
".",
"Also",
"impacting",
"the",
"period",
"were",
"lower",
"employee-related",
"expenses",
"in",
"our",
"software",
"and",
"processing",
"businesses",
",",
"mostly",
"offset",
"by",
"higher",
"AS",
"facilities",
"and",
"data",
"communications",
"network",
"costs",
"associated",
"with",
"the",
"redesign",
"and",
"re-architecture",
"of",
"our",
"data",
"communications",
"network",
".",
"Sales",
",",
"marketing",
"and",
"administration",
"expenses",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"was",
"23",
"%",
"and",
"20",
"%",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"Excluding",
"the",
"Broker/Dealer",
"s",
"expenses",
"of",
"$",
"12",
"million",
"in",
"2010",
"and",
"$",
"13",
"million",
"in",
"2009",
",",
"sales",
",",
"marketing",
"and",
"administration",
"expenses",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"(",
"also",
"excluding",
"the",
"Broker/Dealer",
")",
"was",
"unchanged",
"at",
"23",
"%",
".",
"The",
"$",
"53",
"million",
"increase",
"in",
"sales",
",",
"marketing",
"and",
"administration",
"expenses",
"was",
"due",
"primarily",
"to",
"higher",
"employment-related",
"expense",
"in",
"FS",
"resulting",
"from",
"increased",
"employment",
"to",
"support",
"both",
"growth",
"in",
"the",
"business",
"and",
"international",
"expansion",
",",
"principally",
"in",
"Asia",
"and",
"Brazil",
",",
"as",
"well",
"as",
"annual",
"increases",
"following",
"cost",
"restraint",
"in",
"2009",
"due",
"to",
"economic",
"conditions",
".",
"Also",
"impacting",
"the",
"change",
"were",
"increases",
"in",
"professional",
"services",
"expense",
",",
"advertising",
"and",
"trade",
"show",
"expenses",
"and",
"currency",
"transaction",
"losses",
",",
"partially",
"offset",
"by",
"decreases",
"in",
"FS",
"facilities",
"expense",
",",
"resulting",
"from",
"facilities",
"consolidation",
"in",
"2009",
",",
"and",
"lower",
"bad",
"debt",
"expense",
"in",
"AS",
".",
"Because",
"AS",
"software",
"development",
"costs",
"are",
"insignificant",
",",
"it",
"is",
"more",
"meaningful",
"to",
"measure",
"product",
"development",
"expense",
"as",
"a",
"percentage",
"of",
"revenue",
"from",
"software",
"and",
"processing",
"solutions",
".",
"In",
"2010",
"and",
"2009",
",",
"software",
"development",
"expenses",
"were",
"10",
"%",
"and",
"9",
"%",
",",
"respectively",
",",
"of",
"revenue",
"from",
"software",
"and",
"processing",
"solutions",
".",
"Amortization",
"of",
"acquisition-related",
"intangible",
"assets",
"was",
"10",
"%",
"of",
"total",
"revenue",
"in",
"each",
"of",
"2010",
"and",
"2009",
",",
"respectively",
".",
"During",
"2009",
",",
"we",
"shortened",
"the",
"remaining",
"useful",
"lives",
"of",
"certain",
"intangible",
"assets",
"and",
"also",
"recorded",
"impairment",
"charges",
"of",
"our",
"customer",
"base",
"and",
"software",
"assets",
"of",
"$",
"18",
"million",
"and",
"$",
"17",
"million",
",",
"respectively",
".",
"These",
"impairments",
"are",
"the",
"result",
"of",
"reduced",
"cash",
"flow",
"projections",
"related",
"to",
"the",
"software",
"and",
"customer",
"base",
"assets",
"that",
"were",
"impaired",
".",
"We",
"recorded",
"goodwill",
"impairment",
"charges",
"of",
"$",
"205",
"million",
"and",
"$",
"32",
"million",
"in",
"PS",
"and",
"HE",
",",
"respectively",
",",
"in",
"2010",
"and",
"$",
"1.13",
"billion",
"in",
"AS",
"in",
"2009",
".",
"These",
"impairments",
"are",
"described",
"in",
"the",
"Use",
"of",
"Estimates",
"and",
"Critical",
"Accounting",
"Policies",
"section",
"above",
".",
"Interest",
"expense",
"was",
"$",
"638",
"million",
"in",
"2010",
"compared",
"to",
"$",
"637",
"million",
"in",
"2009",
".",
"Interest",
"expense",
"in",
"2010",
"compared"
] |
13 | 85681 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"expense",
"was",
"$",
"638",
"million",
"in",
"2010",
"compared",
"to",
"$",
"637",
"million",
"in",
"2009",
".",
"Interest",
"expense",
"in",
"2010",
"compared",
"to",
"2009",
"was",
"impacted",
"by",
"the",
"following",
":",
"(",
"a",
")",
"lower",
"average",
"borrowings",
"under",
"our",
"term",
"loans",
"at",
"a",
"slightly",
"higher",
"interest",
"rate",
",",
"(",
"b",
")",
"higher",
"average",
"debt",
"outstanding",
"resulting",
"from",
"the",
"timing",
"of",
"our",
"borrowings",
"and",
"delayed",
"repayment",
"due",
"to",
"calling",
"bonds",
"that",
"were",
"not",
"tendered",
"related",
"to",
"the",
"refinance",
"of",
"our",
"$",
"1.6",
"billion",
"of",
"senior",
"notes",
"due",
"2013",
"at",
"a",
"lower",
"interest",
"rate",
",",
"(",
"c",
")",
"higher",
"average",
"borrowings",
"on",
"our",
"accounts",
"receivable",
"facility",
"at",
"a",
"lower",
"interest",
"rate",
"and",
"(",
"d",
")",
"lower",
"average",
"borrowings",
"under",
"our",
"revolving",
"credit",
"facility",
".",
"The",
"loss",
"on",
"extinguishment",
"of",
"debt",
"in",
"2010",
"was",
"due",
"to",
"the",
"early",
"extinguishments",
"of",
"our",
"$",
"1.6",
"billion",
"of",
"senior",
"notes",
"due",
"in",
"2013",
"and",
"our",
"euro-denominated",
"term",
"loans",
".",
"The",
"loss",
"included",
"$",
"39",
"million",
"of",
"tender",
"and",
"call",
"premiums",
".",
"Other",
"income",
"was",
"$",
"7",
"million",
"in",
"2010",
"compared",
"to",
"$",
"15",
"million",
"in",
"2009",
".",
"The",
"decrease",
"is",
"due",
"primarily",
"to",
"a",
"$",
"9",
"million",
"decrease",
"in",
"foreign",
"currency",
"transaction",
"gains",
"related",
"to",
"our",
"euro-denominated",
"term",
"loans",
".",
"Our",
"overall",
"effective",
"income",
"tax",
"rate",
"is",
"typically",
"between",
"38",
"%",
"and",
"40",
"%",
".",
"The",
"effective",
"income",
"tax",
"rates",
"for",
"each",
"of",
"2010",
"and",
"2009",
"were",
"a",
"tax",
"benefit",
"of",
"7",
"%",
"and",
"6",
"%",
",",
"respectively",
",",
"reflecting",
"nondeductible",
"goodwill",
"impairment",
"charges",
"in",
"both",
"years",
".",
"The",
"reported",
"benefit",
"in",
"2010",
"includes",
"a",
"$",
"13",
"million",
"favorable",
"adjustment",
"due",
"primarily",
"to",
"the",
"impact",
"of",
"tax",
"rate",
"changes",
"on",
"deferred",
"tax",
"assets",
"and",
"liabilities",
"offset",
"by",
"a",
"$",
"48",
"million",
"unfavorable",
"charge",
"for",
"recording",
"deferred",
"income",
"taxes",
"on",
"unremitted",
"earnings",
"of",
"non-U.S.",
"subsidiaries",
"which",
"are",
"no",
"longer",
"considered",
"to",
"be",
"permanently",
"reinvested",
".",
"The",
"reported",
"benefit",
"from",
"income",
"taxes",
"in",
"2009",
"includes",
"a",
"$",
"12",
"million",
"favorable",
"adjustment",
"primarily",
"related",
"to",
"utilization",
"in",
"our",
"2008",
"U.S.",
"federal",
"income",
"tax",
"return",
"of",
"foreign",
"tax",
"credit",
"carryforwards",
"that",
"were",
"not",
"expected",
"to",
"be",
"utilized",
"at",
"the",
"time",
"of",
"the",
"2008",
"tax",
"provision",
".",
"Loss",
"from",
"discontinued",
"operations",
",",
"net",
"of",
"tax",
",",
"was",
"$",
"180",
"million",
"in",
"2010",
"compared",
"to",
"income",
"from",
"discontinued",
"operations",
",",
"net",
"of",
"tax",
",",
"of",
"$",
"4",
"million",
"in",
"2009",
".",
"During",
"2010",
",",
"we",
"sold",
"our",
"PS",
"UK",
"operation",
"which",
"included",
"an",
"impairment",
"charge",
",",
"net",
"of",
"tax",
",",
"of",
"$",
"91",
"million",
"and",
"a",
"loss",
"on",
"disposal",
"of",
"approximately",
"$",
"94",
"million",
"which",
"included",
"the",
"write-off",
"of",
"the",
"currency",
"translation",
"adjustment",
"(",
"CTA",
")",
"which",
"is",
"included",
"as",
"a",
"separate",
"component",
"of",
"equity",
".",
"Accreted",
"dividends",
"on",
"SCCII",
"s",
"cumulative",
"preferred",
"stock",
"were",
"$",
"191",
"million",
"and",
"$",
"180",
"million",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"The",
"increase",
"in",
"dividends",
"is",
"due"
] |
13 | 86131 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"$",
"191",
"million",
"and",
"$",
"180",
"million",
"in",
"2010",
"and",
"2009",
",",
"respectively",
".",
"The",
"increase",
"in",
"dividends",
"is",
"due",
"to",
"compounding",
".",
"No",
"dividends",
"have",
"been",
"declared",
"by",
"SCCII",
".",
"Year",
"Ended",
"December",
"31",
",",
"2009",
"Compared",
"to",
"Year",
"Ended",
"December",
"31",
",",
"2008",
"The",
"following",
"discussion",
"has",
"been",
"updated",
"to",
"reflect",
"the",
"disposition",
"of",
"PS",
"UK",
"and",
"its",
"presentation",
"as",
"a",
"discontinued",
"operation",
".",
"Operating",
"Income",
":",
"Our",
"total",
"operating",
"margin",
"was",
"-11",
"%",
"in",
"2009",
",",
"which",
"included",
"a",
"$",
"1.13",
"billion",
"goodwill",
"impairment",
"charge",
",",
"and",
"12",
"%",
"in",
"2008",
".",
"In",
"addition",
"to",
"the",
"goodwill",
"impairment",
"charge",
",",
"the",
"operating",
"margin",
"was",
"also",
"impacted",
"by",
"the",
"decline",
"in",
"AS",
",",
"a",
"$",
"33",
"million",
"decrease",
"in",
"license",
"fees",
"and",
"a",
"$",
"57",
"million",
"increase",
"in",
"amortization",
"of",
"acquisition-related",
"intangible",
"assets",
",",
"partially",
"offset",
"by",
"margin",
"improvement",
"in",
"our",
"software",
"and",
"processing",
"businesses",
"primarily",
"due",
"to",
"cost",
"savings",
".",
"Financial",
"Systems",
":",
"The",
"FS",
"operating",
"margin",
"was",
"unchanged",
"at",
"20",
"%",
"in",
"each",
"of",
"2009",
"and",
"2008",
".",
"Margin",
"improvement",
"from",
"cost",
"savings",
"initiatives",
",",
"primarily",
"in",
"employee-related",
"and",
"consultant",
"costs",
",",
"was",
"offset",
"by",
"a",
"$",
"30",
"million",
"decrease",
"in",
"software",
"license",
"revenue",
"and",
"the",
"reduced",
"contribution",
"from",
"the",
"Broker/Dealer",
"mentioned",
"above",
".",
"The",
"impact",
"of",
"this",
"Broker/Dealer",
"on",
"FS",
"operating",
"margin",
"is",
"a",
"decline",
"of",
"almost",
"one",
"margin",
"point",
".",
"Higher",
"Education",
":",
"The",
"HE",
"operating",
"margin",
"was",
"26",
"%",
"in",
"2009",
"compared",
"to",
"25",
"%",
"in",
"2008",
".",
"The",
"operating",
"margin",
"increase",
"is",
"due",
"to",
"the",
"impact",
"of",
"cost",
"savings",
"during",
"the",
"year",
",",
"primarily",
"in",
"employee-related",
"and",
"consultant",
"costs",
"and",
"professional",
"services",
"expenses",
".",
"Public",
"Sector",
":",
"The",
"PS",
"operating",
"margin",
"was",
"28",
"%",
"and",
"30",
"%",
"in",
"2009",
"and",
"2008",
",",
"respectively",
".",
"The",
"operating",
"margin",
"decline",
"was",
"due",
"primarily",
"to",
"a",
"$",
"3",
"million",
"decrease",
"in",
"software",
"license",
"fees",
".",
"Availability",
"Services",
":",
"The",
"AS",
"operating",
"margin",
"was",
"25",
"%",
"in",
"2009",
"compared",
"to",
"28",
"%",
"in",
"2008",
",",
"primarily",
"due",
"to",
"facility",
"expansions",
",",
"mostly",
"in",
"Europe",
",",
"which",
"increased",
"the",
"fixed",
"cost",
"base",
"in",
"advance",
"of",
"anticipated",
"revenue",
"growth",
",",
"increases",
"in",
"employee-related",
"costs",
",",
"mostly",
"in",
"North",
"America",
",",
"increased",
"depreciation",
"and",
"amortization",
",",
"and",
"the",
"impact",
"of",
"a",
"change",
"in",
"the",
"mix",
"of",
"revenue",
"from",
"recovery",
"services",
"which",
"typically",
"use",
"shared",
"resources",
"to",
"managed",
"services",
"which",
"use",
"dedicated",
"resources",
".",
"Revenue",
":",
"Total",
"revenue",
"was",
"$",
"5.33",
"billion",
"in",
"2009",
"compared",
"to",
"$",
"5.40",
"billion",
"in",
"2008",
".",
"Included",
"in",
"2009",
"was",
"the",
"full",
"year",
"impact",
"from",
"the",
"acquisitions",
"made",
"in",
"2008",
"including",
"the",
"October",
"2008",
"acquisition",
"of",
"GL",
"TRADE",
"S.A",
".",
"Organic",
"revenue",
"declined",
"3",
"%",
"primarily",
"due",
"to",
"a",
"decrease",
"in",
"professional",
"services",
"revenue",
"in",
"FS",
"and",
"HE",
".",
"Services",
"revenue",
"decreased",
"to",
"$",
"4.84",
"billion",
"from",
"$",
"4.90",
"billion",
",",
"representing",
"approximately",
"91",
"%",
"of",
"total",
"revenue",
"in",
"each",
"of",
"2009",
"and",
"2008"
] |
13 | 86591 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"4.84",
"billion",
"from",
"$",
"4.90",
"billion",
",",
"representing",
"approximately",
"91",
"%",
"of",
"total",
"revenue",
"in",
"each",
"of",
"2009",
"and",
"2008",
".",
"due",
"to",
"a",
"decrease",
"in",
"professional",
"services",
"and",
"processing",
"revenue",
"and",
"the",
"impact",
"of",
"changes",
"in",
"currency",
"exchange",
"rates",
"offset",
"in",
"part",
"by",
"an",
"increase",
"in",
"software",
"rentals",
",",
"primarily",
"from",
"FS",
"acquired",
"businesses",
".",
"Professional",
"services",
"revenue",
"was",
"$",
"770",
"million",
"and",
"$",
"912",
"million",
"in",
"2009",
"and",
"2008",
",",
"respectively",
".",
"The",
"decrease",
"was",
"primarily",
"in",
"FS",
"and",
"HE",
"and",
"was",
"the",
"result",
"of",
"customers",
"delaying",
"or",
"cancelling",
"projects",
"due",
"to",
"the",
"economic",
"climate",
",",
"as",
"well",
"as",
"completion",
"of",
"certain",
"projects",
"in",
"2008",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"was",
"$",
"324",
"million",
"and",
"$",
"359",
"million",
"for",
"2009",
"and",
"2008",
",",
"respectively",
",",
"and",
"includes",
"software",
"license",
"revenue",
"of",
"$",
"233",
"million",
"and",
"$",
"266",
"million",
",",
"respectively",
".",
"SunGard",
"ended",
"2009",
"with",
"a",
"software",
"license",
"backlog",
"of",
"$",
"35",
"million",
"in",
"FS",
",",
"which",
"consisted",
"of",
"signed",
"contracts",
"for",
"licensed",
"software",
"that",
"(",
"i",
")",
"at",
"our",
"election",
",",
"was",
"not",
"shipped",
"to",
"the",
"customer",
"until",
"2010",
",",
"(",
"ii",
")",
"we",
"voluntarily",
"extended",
"payment",
"terms",
"or",
"(",
"iii",
")",
"included",
"products",
"or",
"services",
"not",
"yet",
"deliverable",
"and",
"from",
"which",
"the",
"license",
"element",
"can",
"not",
"be",
"separated",
".",
"Financial",
"Systems",
":",
"FS",
"revenue",
"was",
"$",
"3.07",
"billion",
"in",
"2009",
"compared",
"to",
"$",
"3.08",
"billion",
"in",
"2008",
".",
"Organic",
"revenue",
"decreased",
"by",
"approximately",
"5",
"%",
"in",
"2009",
".",
"Included",
"in",
"2009",
"was",
"the",
"full",
"year",
"impact",
"from",
"acquired",
"businesses",
"which",
"mostly",
"offset",
"the",
"decline",
"in",
"organic",
"revenue",
",",
"largely",
"professional",
"services",
".",
"Professional",
"services",
"revenue",
"decreased",
"$",
"120",
"million",
"or",
"18",
"%",
"to",
"$",
"533",
"million",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"included",
"software",
"license",
"revenue",
"of",
"$",
"174",
"million",
"and",
"$",
"204",
"million",
",",
"respectively",
",",
"in",
"2009",
"and",
"2008",
".",
"We",
"expect",
"a",
"material",
"decline",
"in",
"2010",
"revenue",
"in",
"one",
"of",
"our",
"trading",
"systems",
"businesses",
",",
"a",
"Broker/Dealer",
",",
"as",
"a",
"result",
"of",
"changes",
"in",
"customer",
"mix",
"and",
"lower",
"levels",
"of",
"volatility",
".",
"The",
"customer",
"mix",
"is",
"impacted",
"by",
"the",
"market-wide",
"dynamics",
"by",
"which",
"active",
"trading",
"firms",
"are",
"opting",
"to",
"become",
"broker/dealers",
"and",
"trade",
"on",
"their",
"own",
"behalf",
".",
"Beginning",
"in",
"the",
"first",
"quarter",
"of",
"2010",
",",
"a",
"major",
"customer",
"of",
"this",
"Broker/Dealer",
"started",
"trading",
"on",
"its",
"own",
"behalf",
".",
"This",
"Broker/Dealer",
"business",
",",
"which",
"has",
"an",
"inherently",
"lower",
"margin",
"than",
"our",
"other",
"FS",
"businesses",
",",
"has",
"driven",
"organic",
"revenue",
"growth",
"over",
"the",
"past",
"three",
"years",
".",
"Higher",
"Education",
":",
"HE",
"revenue",
"was",
"$",
"594",
"million",
"in",
"each",
"of",
"2009",
"and",
"2008",
".",
"Organic",
"revenue",
"decreased",
"1",
"%",
".",
"A",
"decline",
"in",
"professional",
"services",
"revenue",
"was",
"mostly",
"offset",
"by",
"increases",
"in",
"processing",
"and",
"software",
"support",
"revenue",
".",
"Professional",
"services",
"revenue",
"was",
"$",
"141",
"million",
"in",
"2009",
"compared",
"to",
"$",
"157",
"million",
"in",
"2008",
".",
"Software",
"license",
"fees",
"increased",
"$",
"1",
"million"
] |
13 | 87051 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"$",
"141",
"million",
"in",
"2009",
"compared",
"to",
"$",
"157",
"million",
"in",
"2008",
".",
"Software",
"license",
"fees",
"increased",
"$",
"1",
"million",
"to",
"$",
"38",
"million",
"in",
"2009",
".",
"Public",
"Sector",
":",
"PS",
"revenue",
"was",
"$",
"153",
"million",
"in",
"2009",
"compared",
"to",
"$",
"162",
"million",
"in",
"2008",
".",
"Organic",
"revenue",
"decreased",
"6",
"%",
"in",
"2009",
".",
"The",
"$",
"9",
"million",
",",
"or",
"6",
"%",
",",
"decrease",
"was",
"due",
"primarily",
"to",
"decreases",
"in",
"professional",
"services",
"and",
"software",
"license",
"fees",
",",
"partially",
"offset",
"by",
"an",
"increase",
"in",
"software",
"support",
"revenue",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"included",
"software",
"license",
"fees",
"of",
"$",
"16",
"million",
"and",
"$",
"20",
"million",
"in",
"2009",
"and",
"2008",
",",
"respectively",
".",
"Availability",
"Services",
":",
"AS",
"revenue",
"was",
"$",
"1.52",
"billion",
"in",
"2009",
"compared",
"to",
"$",
"1.57",
"billion",
"in",
"2008",
",",
"a",
"3",
"%",
"decrease",
".",
"AS",
"organic",
"revenue",
"was",
"unchanged",
"in",
"2009",
".",
"In",
"North",
"America",
",",
"revenue",
"decreased",
"1",
"%",
"overall",
"and",
"2",
"%",
"organically",
"where",
"decreases",
"in",
"recovery",
"services",
"exceeded",
"growth",
"in",
"managed",
"services",
"and",
"professional",
"services",
"revenue",
".",
"Revenue",
"from",
"license",
"and",
"resale",
"fees",
"included",
"software",
"license",
"revenue",
"of",
"$",
"4",
"million",
",",
"a",
"decrease",
"of",
"$",
"2",
"million",
"from",
"the",
"prior",
"year",
".",
"Revenue",
"in",
"Europe",
"decreased",
"12",
"%",
",",
"but",
"increased",
"2.5",
"%",
"organically",
".",
"Costs",
"and",
"Expenses",
":",
"Total",
"costs",
"increased",
"to",
"111",
"%",
"of",
"revenue",
"in",
"2009",
"from",
"88",
"%",
"of",
"2008",
"revenue",
".",
"Included",
"in",
"2009",
"was",
"a",
"$",
"1.13",
"billion",
"impairment",
"charge",
"related",
"to",
"our",
"AS",
"business",
".",
"Cost",
"of",
"sales",
"and",
"direct",
"operating",
"expenses",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"was",
"48",
"%",
"in",
"each",
"of",
"2009",
"and",
"2008",
".",
"Lower",
"employee-related",
"and",
"consultant",
"expenses",
"in",
"our",
"software",
"and",
"processing",
"businesses",
"were",
"partially",
"offset",
"by",
"increased",
"costs",
"from",
"acquired",
"businesses",
",",
"net",
"of",
"a",
"business",
"sold",
"in",
"2008",
".",
"The",
"decrease",
"in",
"sales",
",",
"marketing",
"and",
"administration",
"expenses",
"of",
"$",
"25",
"million",
"was",
"due",
"primarily",
"to",
"decreased",
"costs",
"resulting",
"from",
"FS",
"employee-related",
"expenses",
"partially",
"offset",
"by",
"increased",
"costs",
"from",
"acquired",
"businesses",
",",
"net",
"of",
"a",
"business",
"sold",
"in",
"2008",
",",
"and",
"increases",
"in",
"FS",
"facilities",
"expense",
".",
"Because",
"AS",
"software",
"development",
"costs",
"are",
"insignificant",
",",
"it",
"is",
"more",
"meaningful",
"to",
"measure",
"product",
"development",
"expense",
"as",
"a",
"percentage",
"of",
"revenue",
"from",
"software",
"and",
"processing",
"solutions",
".",
"In",
"2009",
"and",
"2008",
",",
"software",
"development",
"expenses",
"were",
"9",
"%",
"and",
"8",
"%",
",",
"respectively",
",",
"of",
"revenue",
"from",
"software",
"and",
"processing",
"solutions",
".",
"Depreciation",
"and",
"amortization",
"as",
"a",
"percentage",
"of",
"total",
"revenue",
"was",
"5",
"%",
"in",
"each",
"of",
"2009",
"and",
"2008",
".",
"The",
"$",
"14",
"million",
"increase",
"in",
"2009",
"was",
"due",
"primarily",
"to",
"capital",
"expenditures",
"supporting",
"AS",
",",
"FS",
"and",
"HE",
".",
"Amortization",
"of",
"acquisition-related",
"intangible",
"assets",
"was",
"10",
"%",
"and",
"9",
"%",
"of",
"total",
"revenue",
"in",
"2009",
"and",
"2008",
",",
"respectively",
".",
"During",
"2009",
",",
"we",
"shortened",
"the",
"remaining",
"useful",
"lives",
"of",
"certain",
"intangible",
"assets",
"and",
"also",
"recorded",
"impairment",
"charges",
"of",
"our",
"customer",
"base",
"and",
"software",
"assets",
"of",
"$",
"18",
"million"
] |
13 | 87521 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"of",
"certain",
"intangible",
"assets",
"and",
"also",
"recorded",
"impairment",
"charges",
"of",
"our",
"customer",
"base",
"and",
"software",
"assets",
"of",
"$",
"18",
"million",
"and",
"$",
"17",
"million",
",",
"respectively",
".",
"During",
"2008",
",",
"we",
"recorded",
"impairment",
"charges",
"of",
"our",
"customer",
"base",
",",
"software",
"and",
"trade",
"name",
"assets",
"of",
"$",
"27",
"million",
",",
"$",
"9",
"million",
"and",
"$",
"3",
"million",
",",
"respectively",
".",
"These",
"impairments",
"are",
"the",
"result",
"of",
"reduced",
"cash",
"flow",
"projections",
".",
"We",
"recorded",
"a",
"goodwill",
"impairment",
"charge",
"of",
"$",
"1.13",
"billion",
"in",
"AS",
"in",
"2009",
".",
"This",
"impairment",
"is",
"described",
"in",
"the",
"Use",
"of",
"Estimates",
"and",
"Critical",
"Accounting",
"Policies",
"section",
"above",
".",
"Interest",
"expense",
"was",
"$",
"637",
"million",
"in",
"2009",
"compared",
"to",
"$",
"597",
"million",
"in",
"2008",
".",
"The",
"increase",
"is",
"primarily",
"due",
"to",
"increased",
"borrowings",
"from",
"the",
"issuance",
"of",
"$",
"500",
"million",
"senior",
"notes",
"due",
"2015",
",",
"a",
"$",
"500",
"million",
"increase",
"in",
"the",
"term",
"loan",
"and",
"borrowings",
"under",
"our",
"receivables",
"facility",
",",
"partially",
"offset",
"by",
"decreased",
"borrowings",
"under",
"our",
"term",
"loans",
"and",
"revolving",
"credit",
"facility",
",",
"repayment",
"of",
"our",
"senior",
"notes",
"due",
"in",
"January",
"2009",
"and",
"interest",
"rate",
"decreases",
".",
"Other",
"income",
"was",
"$",
"15",
"million",
"in",
"2009",
"compared",
"to",
"other",
"expense",
"of",
"$",
"93",
"million",
"in",
"2008",
".",
"The",
"income",
"in",
"2009",
"was",
"due",
"primarily",
"to",
"$",
"14",
"million",
"of",
"foreign",
"currency",
"translation",
"gains",
"related",
"to",
"our",
"euro-denominated",
"term",
"loan",
".",
"In",
"contrast",
",",
"during",
"2008",
",",
"currency",
"translation",
"related",
"to",
"those",
"same",
"euro-",
"denominated",
"term",
"loans",
"produced",
"$",
"46",
"million",
"of",
"foreign",
"currency",
"translation",
"losses",
".",
"Also",
"incurred",
"in",
"2008",
"were",
"$",
"25",
"million",
"of",
"losses",
"on",
"sales",
"of",
"receivables",
"related",
"to",
"our",
"terminated",
"off-balance",
"sheet",
"receivables",
"facility",
"and",
"$",
"17",
"million",
"of",
"losses",
"on",
"euros",
"purchased",
"in",
"advance",
"of",
"and",
"fees",
"associated",
"with",
"unused",
"alternative",
"financing",
"commitments",
"for",
"the",
"acquisition",
"of",
"GL",
"TRADE",
".",
"We",
"believe",
"that",
"our",
"overall",
"effective",
"income",
"tax",
"rate",
"is",
"typically",
"between",
"38",
"%",
"and",
"40",
"%",
".",
"The",
"effective",
"income",
"tax",
"rates",
"for",
"2009",
"and",
"2008",
"were",
"a",
"tax",
"benefit",
"of",
"6",
"%",
"and",
"a",
"tax",
"provision",
"of",
"124",
"%",
",",
"respectively",
".",
"The",
"rate",
"in",
"2009",
"reflects",
"a",
"nondeductible",
"goodwill",
"impairment",
"charge",
".",
"The",
"rate",
"in",
"2008",
"reflects",
"a",
"charge",
"for",
"tax",
"positions",
"taken",
"in",
"prior",
"years",
"as",
"well",
"as",
"differences",
"in",
"the",
"mix",
"of",
"taxable",
"income",
"in",
"various",
"jurisdictions",
".",
"The",
"reported",
"benefit",
"from",
"income",
"taxes",
"in",
"2009",
"includes",
"a",
"$",
"12",
"million",
"favorable",
"adjustment",
"primarily",
"related",
"to",
"utilization",
"in",
"our",
"2008",
"U.S.",
"federal",
"income",
"tax",
"return",
"of",
"foreign",
"tax",
"credit",
"carryforwards",
"that",
"were",
"not",
"expected",
"to",
"be",
"utilized",
"at",
"the",
"time",
"of",
"the",
"2008",
"tax",
"provision",
".",
"Income",
"from",
"discontinued",
"operations",
",",
"net",
"of",
"tax",
",",
"was",
"$",
"4",
"million",
"in",
"2009",
"compared",
"to",
"loss",
"from",
"discontinued",
"operations",
",",
"net",
"of",
"tax",
",",
"of",
"$",
"150",
"million",
"in",
"2008",
".",
"During",
"2008",
",",
"we",
"incurred",
"a",
"goodwill",
"impairment",
"charge",
",",
"net",
"of",
"tax",
",",
"of",
"$",
"128",
"million",
".",
"Also",
"in",
"2008",
",",
"we",
"recorded",
"impairment",
"charges",
"of"
] |
13 | 87991 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"charge",
",",
"net",
"of",
"tax",
",",
"of",
"$",
"128",
"million",
".",
"Also",
"in",
"2008",
",",
"we",
"recorded",
"impairment",
"charges",
"of",
"our",
"customer",
"base",
"and",
"software",
"assets",
"of",
"$",
"20",
"million",
"and",
"$",
"8",
"million",
",",
"respectively",
".",
"These",
"impairments",
"are",
"the",
"result",
"of",
"reduced",
"cash",
"flow",
"projections",
"related",
"to",
"the",
"software",
"and",
"customer",
"base",
"assets",
"that",
"were",
"impaired",
".",
"Accreted",
"dividends",
"on",
"SCCII",
"s",
"cumulative",
"preferred",
"stock",
"were",
"$",
"180",
"million",
"and",
"$",
"157",
"million",
"in",
"2009",
"and",
"2008",
",",
"respectively",
".",
"The",
"increase",
"in",
"dividends",
"is",
"due",
"to",
"compounding",
".",
"No",
"dividends",
"have",
"been",
"declared",
"by",
"SCCII",
".",
"Liquidity",
"and",
"Capital",
"Resources",
":",
"At",
"December",
"31",
",",
"2010",
",",
"cash",
"and",
"cash",
"equivalents",
"in",
"continuing",
"operations",
"were",
"$",
"778",
"million",
",",
"an",
"increase",
"of",
"$",
"136",
"million",
"from",
"December",
"31",
",",
"2009",
",",
"while",
"availability",
"under",
"our",
"revolving",
"credit",
"facility",
"was",
"$",
"796",
"million",
".",
"Approximately",
"$",
"483",
"million",
"of",
"cash",
"and",
"cash",
"equivalents",
"at",
"December",
"31",
",",
"2010",
"was",
"held",
"by",
"our",
"wholly",
"owned",
"non-U.S.",
"While",
"available",
"to",
"fund",
"operations",
"and",
"strategic",
"investment",
"opportunities",
"abroad",
",",
"most",
"of",
"these",
"funds",
"can",
"not",
"be",
"repatriated",
"for",
"use",
"in",
"the",
"United",
"States",
"without",
"incurring",
"additional",
"cash",
"tax",
"costs",
"and",
"in",
"some",
"cases",
"are",
"in",
"countries",
"with",
"currency",
"restrictions",
".",
"Also",
",",
"approximately",
"$",
"100",
"million",
"of",
"cash",
"and",
"cash",
"equivalents",
"at",
"December",
"31",
",",
"2010",
"relates",
"to",
"our",
"broker/dealer",
"operations",
"which",
"is",
"not",
"available",
"for",
"general",
"corporate",
"use",
"without",
"adversely",
"affecting",
"the",
"operation",
"of",
"the",
"broker/dealer",
"businesses",
".",
"Cash",
"flow",
"from",
"continuing",
"operations",
"was",
"$",
"714",
"million",
"in",
"2010",
"compared",
"to",
"cash",
"flow",
"from",
"continuing",
"operations",
"of",
"$",
"607",
"million",
"in",
"2009",
".",
"The",
"increase",
"in",
"cash",
"flow",
"from",
"continuing",
"operations",
"is",
"due",
"primarily",
"to",
"the",
"termination",
"in",
"December",
"2008",
"of",
"our",
"off-balance",
"sheet",
"accounts",
"receivable",
"securitization",
"program",
",",
"which",
"reduced",
"2009",
"operating",
"cash",
"flow",
",",
"and",
"$",
"92",
"million",
"less",
"of",
"income",
"tax",
"payments",
",",
"net",
"of",
"refunds",
",",
"in",
"2010",
",",
"partially",
"offset",
"by",
"the",
"reduction",
"in",
"operating",
"income",
"after",
"adjusting",
"for",
"the",
"noncash",
"goodwill",
"impairments",
"in",
"2010",
"and",
"2009",
".",
"Cash",
"flow",
"from",
"continuing",
"operations",
"was",
"$",
"607",
"million",
"in",
"2009",
"compared",
"to",
"cash",
"flow",
"from",
"continuing",
"operations",
"of",
"$",
"375",
"million",
"in",
"2008",
".",
"The",
"increase",
"in",
"cash",
"flow",
"from",
"continuing",
"operations",
"is",
"due",
"primarily",
"to",
"the",
"positive",
"impact",
"of",
"approximately",
"$",
"287",
"million",
"from",
"the",
"termination",
"in",
"December",
"2008",
"of",
"our",
"off-balance",
"sheet",
"accounts",
"receivable",
"securitization",
"program",
",",
"offset",
"by",
"an",
"increased",
"use",
"of",
"cash",
",",
"principally",
"in",
"working",
"capital",
",",
"in",
"the",
"balance",
"of",
"the",
"business",
".",
"Net",
"cash",
"used",
"by",
"continuing",
"operations",
"in",
"investing",
"activities",
"was",
"$",
"385",
"million",
"in",
"2010",
"and",
"$",
"331",
"million",
"in",
"2009",
".",
"During",
"2010",
",",
"we",
"spent",
"$",
"82",
"million",
"for",
"four",
"acquisitions",
",",
"whereas",
"we",
"spent",
"$",
"13",
"million",
"for",
"three",
"acquisitions",
"during",
"2009",
".",
"Capital"
] |
13 | 88441 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"$",
"82",
"million",
"for",
"four",
"acquisitions",
",",
"whereas",
"we",
"spent",
"$",
"13",
"million",
"for",
"three",
"acquisitions",
"during",
"2009",
".",
"Capital",
"expenditures",
"for",
"continuing",
"operations",
"were",
"$",
"312",
"million",
"in",
"2010",
"and",
"$",
"323",
"million",
"in",
"2009",
".",
"In",
"2008",
",",
"net",
"cash",
"used",
"by",
"continuing",
"operations",
"in",
"investing",
"activities",
"was",
"$",
"1.1",
"billion",
",",
"primarily",
"related",
"to",
"$",
"721",
"million",
"spent",
"on",
"six",
"acquisitions",
",",
"including",
"$",
"546",
"million",
"for",
"the",
"acquisition",
"of",
"GL",
"TRADE",
"S.A",
".",
"in",
"our",
"FS",
"business",
",",
"and",
"capital",
"expenditures",
"were",
"$",
"391",
"million",
".",
"In",
"2010",
",",
"net",
"cash",
"used",
"by",
"continuing",
"operations",
"in",
"financing",
"activities",
"was",
"$",
"344",
"million",
",",
"which",
"included",
"the",
"early",
"retirements",
"of",
"our",
"senior",
"notes",
"due",
"2013",
"along",
"with",
"the",
"associated",
"retirement",
"premium",
"and",
"$",
"265",
"million",
"of",
"term",
"loans",
",",
"and",
"the",
"issuance",
"of",
"$",
"900",
"million",
"of",
"senior",
"notes",
"due",
"2018",
"and",
"$",
"700",
"million",
"of",
"senior",
"notes",
"due",
"2020",
"(",
"net",
"of",
"associated",
"fees",
")",
".",
"We",
"also",
"increased",
"our",
"borrowings",
"under",
"our",
"accounts",
"receivable",
"securitization",
"program",
"by",
"$",
"63",
"million",
"in",
"2010",
".",
"In",
"2009",
",",
"net",
"cash",
"used",
"by",
"continuing",
"operations",
"in",
"financing",
"activities",
"was",
"$",
"627",
"million",
",",
"primarily",
"related",
"to",
"repayment",
"at",
"maturity",
"of",
"the",
"$",
"250",
"million",
"senior",
"secured",
"notes",
"and",
"repayment",
"of",
"$",
"500",
"million",
"of",
"borrowings",
"under",
"our",
"revolving",
"credit",
"facility",
",",
"partially",
"offset",
"by",
"cash",
"received",
"from",
"the",
"new",
"receivables",
"facility",
"(",
"net",
"of",
"associated",
"fees",
")",
".",
"In",
"2008",
",",
"net",
"cash",
"provided",
"by",
"financing",
"activities",
"was",
"$",
"1.3",
"billion",
",",
"which",
"was",
"used",
"to",
"fund",
"the",
"acquisition",
"of",
"GL",
"TRADE",
",",
"replace",
"the",
"liquidity",
"provided",
"by",
"the",
"terminated",
"off-balance",
"sheet",
"accounts",
"receivable",
"securitization",
"facility",
"and",
"repay",
"$",
"250",
"million",
"of",
"senior",
"notes",
"due",
"in",
"January",
"2009",
".",
"As",
"a",
"result",
"of",
"the",
"LBO",
",",
"we",
"are",
"highly",
"leveraged",
".",
"Our",
"Sponsors",
"continually",
"evaluate",
"strategic",
"initiatives",
",",
"some",
"of",
"which",
"could",
"significantly",
"impact",
"our",
"debt",
"profile",
".",
"See",
"above",
"Overview",
".",
"See",
"Note",
"5",
"of",
"Notes",
"to",
"Consolidated",
"Financial",
"Statements",
"which",
"contains",
"a",
"full",
"description",
"of",
"our",
"debt",
".",
"Total",
"debt",
"outstanding",
"as",
"of",
"December",
"31",
",",
"2010",
"was",
"$",
"8.06",
"billion",
",",
"which",
"consists",
"of",
"the",
"following",
"(",
"in",
"millions",
")",
":",
"Senior",
"Secured",
"Credit",
"Facilities",
"As",
"of",
"December",
"31",
",",
"2010",
",",
"SunGard",
"s",
"senior",
"secured",
"credit",
"facilities",
"(",
"Credit",
"Agreement",
")",
"consist",
"of",
"(",
"1",
")",
"$",
"1.39",
"billion",
"of",
"U.S.",
"dollar-denominated",
"tranche",
"A",
"term",
"loans",
"and",
"$",
"62",
"million",
"of",
"pound",
"sterling-denominated",
"tranche",
"A",
"term",
"loans",
",",
"each",
"maturing",
"on",
"February",
"28",
",",
"2014",
",",
"(",
"2",
")",
"$",
"2.41",
"billion",
"of",
"U.S.",
"dollar-denominated",
"tranche",
"B",
"term",
"loans",
"and",
"$",
"60",
"million",
"of",
"pound",
"sterling-denominated",
"tranche",
"B",
"term",
"loans",
",",
"each",
"maturing",
"on"
] |
13 | 88871 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"dollar-denominated",
"tranche",
"B",
"term",
"loans",
"and",
"$",
"60",
"million",
"of",
"pound",
"sterling-denominated",
"tranche",
"B",
"term",
"loans",
",",
"each",
"maturing",
"on",
"February",
"28",
",",
"2016",
",",
"(",
"3",
")",
"$",
"479",
"million",
"of",
"U.S.",
"dollar-denominated",
"incremental",
"term",
"loans",
"maturing",
"on",
"February",
"28",
",",
"2014",
"and",
"(",
"4",
")",
"an",
"$",
"829",
"million",
"revolving",
"credit",
"facility",
"with",
"$",
"580",
"million",
"of",
"commitments",
"terminating",
"on",
"May",
"11",
",",
"2013",
",",
"and",
"$",
"249",
"million",
"of",
"commitments",
"terminating",
"on",
"August",
"11",
",",
"2011",
".",
"As",
"of",
"December",
"31",
",",
"2010",
",",
"$",
"796",
"million",
"was",
"available",
"for",
"borrowing",
"under",
"the",
"revolving",
"credit",
"facility",
"after",
"giving",
"effect",
"to",
"certain",
"outstanding",
"letters",
"of",
"credit",
".",
"In",
"December",
"2010",
",",
"we",
"sold",
"our",
"PS",
"UK",
"operation",
"for",
"gross",
"proceeds",
"of",
"£88",
"million",
"(",
"$",
"138",
"million",
")",
".",
"Pursuant",
"to",
"our",
"Credit",
"Agreement",
",",
"we",
"were",
"required",
"to",
"apply",
"the",
"Net",
"Proceeds",
",",
"as",
"defined",
"in",
"the",
"Credit",
"Agreement",
",",
"to",
"the",
"repayment",
"of",
"outstanding",
"term",
"loans",
".",
"Accordingly",
",",
"we",
"repaid",
"$",
"96",
"million",
"of",
"SunGard",
"s",
"U.S.",
"dollar-denominated",
"term",
"loans",
",",
"$",
"3",
"million",
"of",
"pound",
"sterling-denominated",
"term",
"loans",
"and",
"$",
"2",
"million",
"of",
"our",
"euro-denominated",
"term",
"loans",
".",
"In",
"addition",
",",
"and",
"concurrent",
"with",
"these",
"mandatory",
"prepayments",
",",
"other",
"available",
"cash",
"was",
"used",
"to",
"voluntarily",
"repay",
"the",
"remaining",
"$",
"164",
"million",
"balance",
"outstanding",
"on",
"the",
"euro-denominated",
"term",
"loans",
".",
"In",
"January",
"2011",
",",
"we",
"amended",
"SunGard",
"s",
"incremental",
"term",
"loan",
"to",
"(",
"a",
")",
"eliminate",
"the",
"LIBOR",
"and",
"Base",
"Rate",
"floors",
"and",
"(",
"b",
")",
"reduce",
"the",
"Eurocurrency",
"Rate",
"spread",
"from",
"3.75",
"%",
"to",
"3.50",
"%",
"and",
"the",
"Base",
"Rate",
"spread",
"from",
"2.75",
"%",
"to",
"2.50",
"%",
".",
"The",
"loan",
"maturity",
"was",
"not",
"changed",
".",
"Senior",
"Notes",
"On",
"November",
"1",
",",
"2010",
",",
"SunGard",
"issued",
"$",
"900",
"million",
"of",
"7.375",
"%",
"senior",
"notes",
"due",
"in",
"November",
"2018",
"and",
"$",
"700",
"million",
"of",
"7.625",
"%",
"senior",
"notes",
"due",
"in",
"November",
"2020",
".",
"The",
"proceeds",
",",
"together",
"with",
"other",
"cash",
",",
"were",
"used",
"to",
"retire",
"our",
"$",
"1.6",
"billion",
"9.125",
"%",
"senior",
"notes",
"due",
"2013",
".",
"The",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
"contain",
"registration",
"rights",
"by",
"which",
"SunGard",
"has",
"agreed",
"to",
"use",
"its",
"reasonable",
"best",
"efforts",
"to",
"register",
"with",
"the",
"U.S.",
"Securities",
"&",
"Exchange",
"Commission",
"notes",
"having",
"substantially",
"identical",
"terms",
".",
"SunGard",
"will",
"use",
"its",
"reasonable",
"best",
"efforts",
"to",
"cause",
"the",
"exchange",
"offer",
"to",
"be",
"completed",
"or",
",",
"if",
"required",
",",
"to",
"have",
"one",
"or",
"more",
"shelf",
"registration",
"statements",
"declared",
"effective",
",",
"within",
"360",
"days",
"after",
"the",
"issue",
"date",
"of",
"the",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
".",
"If",
"SunGard",
"fails",
"to",
"meet",
"this",
"target",
"(",
"a",
"registration",
"default",
")",
"with",
"respect",
"to",
"the",
"senior"
] |
13 | 89291 | [
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0
] | [
"and",
"2020",
".",
"If",
"SunGard",
"fails",
"to",
"meet",
"this",
"target",
"(",
"a",
"registration",
"default",
")",
"with",
"respect",
"to",
"the",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
",",
"the",
"annual",
"interest",
"rate",
"on",
"the",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
"will",
"increase",
"by",
"0.25",
"%",
"for",
"each",
"subsequent",
"90-day",
"period",
"during",
"which",
"the",
"registration",
"default",
"continues",
",",
"up",
"to",
"a",
"maximum",
"additional",
"interest",
"rate",
"of",
"1.0",
"%",
"per",
"year",
"over",
"the",
"applicable",
"interest",
"rate",
".",
"If",
"the",
"registration",
"default",
"is",
"corrected",
"or",
",",
"if",
"it",
"is",
"not",
"corrected",
",",
"upon",
"the",
"two",
"year",
"anniversary",
"of",
"the",
"issue",
"date",
"of",
"the",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
",",
"the",
"applicable",
"interest",
"rate",
"on",
"such",
"senior",
"notes",
"due",
"2018",
"and",
"2020",
"will",
"revert",
"to",
"the",
"original",
"level",
".",
"Receivables",
"Facilities",
"On",
"September",
"30",
",",
"2010",
",",
"SunGard",
"entered",
"into",
"an",
"Amended",
"and",
"Restated",
"Credit",
"and",
"Security",
"Agreement",
"related",
"to",
"its",
"receivables",
"facility",
".",
"component",
"to",
"$",
"200",
"million",
"from",
"$",
"181",
"million",
",",
"(",
"c",
")",
"extended",
"the",
"maturity",
"date",
"to",
"September",
"30",
",",
"2014",
",",
"(",
"d",
")",
"removed",
"the",
"3",
"%",
"LIBOR",
"floor",
"and",
"set",
"the",
"interest",
"rate",
"to",
"one-month",
"LIBOR",
"plus",
"3.5",
"%",
",",
"which",
"at",
"December",
"31",
",",
"2010",
"was",
"3.76",
"%",
",",
"and",
"(",
"e",
")",
"amended",
"certain",
"other",
"terms",
".",
"At",
"December",
"31",
",",
"2010",
",",
"$",
"200",
"million",
"was",
"drawn",
"against",
"the",
"term",
"loan",
"commitment",
"and",
"$",
"113",
"million",
"was",
"drawn",
"against",
"the",
"revolving",
"commitment",
",",
"which",
"represented",
"the",
"full",
"amount",
"available",
"for",
"borrowing",
"based",
"on",
"the",
"terms",
"and",
"conditions",
"of",
"the",
"facility",
".",
"At",
"December",
"31",
",",
"2010",
",",
"$",
"680",
"million",
"of",
"accounts",
"receivable",
"secure",
"the",
"borrowings",
"under",
"the",
"receivables",
"facility",
".",
"In",
"March",
"2009",
",",
"SunGard",
"entered",
"into",
"a",
"syndicated",
"three-year",
"receivables",
"facility",
".",
"The",
"facility",
"limit",
"was",
"$",
"317",
"million",
",",
"which",
"consisted",
"of",
"a",
"term",
"loan",
"commitment",
"of",
"$",
"181",
"million",
"and",
"a",
"revolving",
"commitment",
"of",
"$",
"136",
"million",
".",
"Advances",
"may",
"be",
"borrowed",
"and",
"repaid",
"under",
"the",
"revolving",
"commitment",
"with",
"no",
"impact",
"on",
"the",
"facility",
"limit",
".",
"The",
"term",
"loan",
"commitment",
"may",
"be",
"repaid",
"at",
"any",
"time",
"at",
"SunGard",
"s",
"option",
",",
"but",
"such",
"repayment",
"will",
"result",
"in",
"a",
"permanent",
"reduction",
"in",
"the",
"facility",
"limit",
".",
"Under",
"the",
"receivables",
"facility",
",",
"SunGard",
"was",
"generally",
"required",
"to",
"pay",
"interest",
"on",
"the",
"amount",
"of",
"each",
"advance",
"at",
"the",
"one",
"month",
"LIBOR",
"rate",
"(",
"with",
"a",
"floor",
"of",
"3",
"%",
")",
"plus",
"4.50",
"%",
"per",
"annum",
".",
"The",
"facility",
"is",
"subject",
"to",
"a",
"fee",
"on",
"the",
"unused",
"portion",
"of",
"1.00",
"%",
"per",
"annum",
".",
"The",
"receivables",
"facility",
"contains",
"certain",
"covenants",
",",
"and",
"SunGard",
"is",
"required",
"to",
"satisfy",
"and",
"maintain",
"specified",
"facility",
"performance",
"ratios",
",",
"financial",
"ratios",
"and",
"other",
"financial",
"condition",
"tests",
".",
"In",
"December",
"2008",
",",
"SunGard",
"terminated",
"its",
"off-balance",
"sheet",
"accounts",
"receivable",
"securitization"
] |
13 | 89731 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"financial",
"ratios",
"and",
"other",
"financial",
"condition",
"tests",
".",
"In",
"December",
"2008",
",",
"SunGard",
"terminated",
"its",
"off-balance",
"sheet",
"accounts",
"receivable",
"securitization",
"program",
".",
"Under",
"that",
"accounts",
"receivable",
"facility",
",",
"eligible",
"receivables",
"were",
"sold",
"to",
"third-party",
"conduits",
"through",
"a",
"wholly",
"owned",
",",
"bankruptcy",
"remote",
",",
"special",
"purpose",
"entity",
"that",
"is",
"not",
"consolidated",
"for",
"financial",
"reporting",
"purposes",
".",
"SunGard",
"serviced",
"the",
"receivables",
"and",
"charged",
"a",
"monthly",
"servicing",
"fee",
"at",
"market",
"rates",
".",
"The",
"third-party",
"conduits",
"were",
"sponsored",
"by",
"certain",
"lenders",
"under",
"SunGard",
"s",
"senior",
"secured",
"credit",
"facilities",
".",
"Interest",
"Rate",
"Swaps",
"We",
"use",
"interest",
"rate",
"swap",
"agreements",
"to",
"manage",
"the",
"amount",
"of",
"our",
"floating",
"rate",
"debt",
"in",
"order",
"to",
"reduce",
"our",
"exposure",
"to",
"variable",
"rate",
"interest",
"payments",
"associated",
"with",
"the",
"senior",
"secured",
"credit",
"facilities",
".",
"We",
"pay",
"a",
"stream",
"of",
"fixed",
"interest",
"payments",
"for",
"the",
"term",
"of",
"the",
"swap",
",",
"and",
"in",
"turn",
",",
"receive",
"variable",
"interest",
"payments",
"based",
"on",
"one-month",
"LIBOR",
"or",
"three-month",
"LIBOR",
"(",
"0.26",
"%",
"and",
"0.30",
"%",
",",
"respectively",
",",
"at",
"December",
"31",
",",
"2010",
")",
".",
"The",
"net",
"receipt",
"or",
"payment",
"from",
"the",
"interest",
"rate",
"swap",
"agreements",
"is",
"included",
"in",
"interest",
"expense",
".",
"A",
"summary",
"of",
"our",
"interest",
"rate",
"swaps",
"at",
"December",
"31",
",",
"2010",
"follows",
":",
"Contractual",
"Obligations",
"At",
"December",
"31",
",",
"2010",
",",
"our",
"contractual",
"obligations",
"follow",
"(",
"in",
"millions",
")",
":",
"At",
"December",
"31",
",",
"2010",
",",
"contingent",
"purchase",
"price",
"obligations",
"that",
"depend",
"upon",
"the",
"operating",
"performance",
"of",
"certain",
"acquired",
"businesses",
"were",
"less",
"than",
"$",
"1",
"million",
".",
"We",
"also",
"have",
"outstanding",
"letters",
"of",
"credit",
"and",
"bid",
"bonds",
"that",
"total",
"approximately",
"$",
"42",
"million",
".",
"We",
"expect",
"our",
"cash",
"on",
"hand",
",",
"cash",
"flows",
"from",
"operations",
",",
"availability",
"under",
"our",
"Credit",
"Agreement",
"and",
"availability",
"under",
"our",
"accounts",
"receivable",
"revolving",
"commitment",
"to",
"provide",
"sufficient",
"liquidity",
"to",
"fund",
"our",
"current",
"obligations",
",",
"projected",
"working",
"capital",
"requirements",
"and",
"capital",
"spending",
"for",
"a",
"period",
"that",
"includes",
"at",
"least",
"the",
"next",
"12",
"months",
".",
"Depending",
"on",
"market",
"conditions",
",",
"SunGard",
",",
"its",
"Sponsors",
"and",
"their",
"affiliates",
"may",
"from",
"time",
"to",
"time",
"repurchase",
"debt",
"securities",
"issued",
"by",
"SunGard",
",",
"in",
"privately",
"negotiated",
"or",
"open",
"market",
"transactions",
",",
"by",
"tender",
"offer",
"or",
"otherwise",
".",
"Covenant",
"Compliance",
"Our",
"senior",
"secured",
"credit",
"facilities",
"and",
"the",
"indentures",
"governing",
"our",
"senior",
"notes",
"due",
"2015",
",",
"2018",
"and",
"2020",
"and",
"our",
"senior",
"subordinated",
"notes",
"due",
"2015",
"contain",
"various",
"covenants",
"that",
"limit",
"our",
"ability",
"to",
"engage",
"in",
"specified",
"types",
"of",
"transactions",
".",
"These",
"covenants",
"limit",
"our",
"ability",
"to",
",",
"among",
"other",
"things",
":",
"In",
"addition",
",",
"pursuant",
"to",
"the",
"Principal",
"Investor",
"Agreement",
"by",
"and",
"among",
"our",
"Holding",
"Companies",
"and",
"the",
"Sponsors",
",",
"we",
"are",
"required",
"to",
"obtain",
"approval",
"from",
"certain",
"Sponsors",
"prior",
"to",
"the",
"declaration",
"or",
"payment",
"of",
"any",
"dividend",
"by",
"us",
"or",
"any",
"of",
"our",
"subsidiaries",
"(",
"other",
"than",
"dividends",
"payable",
"to",
"us",
"or",
"any",
"of",
"our"
] |
13 | 90171 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"any",
"dividend",
"by",
"us",
"or",
"any",
"of",
"our",
"subsidiaries",
"(",
"other",
"than",
"dividends",
"payable",
"to",
"us",
"or",
"any",
"of",
"our",
"wholly",
"owned",
"subsidiaries",
")",
".",
"Under",
"the",
"senior",
"secured",
"credit",
"facilities",
",",
"we",
"are",
"required",
"to",
"satisfy",
"and",
"maintain",
"specified",
"financial",
"ratios",
"and",
"other",
"financial",
"condition",
"tests",
".",
"As",
"of",
"December",
"31",
",",
"2010",
",",
"we",
"are",
"in",
"compliance",
"with",
"all",
"financial",
"and",
"nonfinancial",
"covenants",
".",
"While",
"we",
"believe",
"that",
"we",
"will",
"remain",
"in",
"compliance",
",",
"our",
"continued",
"ability",
"to",
"meet",
"those",
"financial",
"ratios",
"and",
"tests",
"can",
"be",
"affected",
"by",
"events",
"beyond",
"our",
"control",
",",
"and",
"there",
"is",
"no",
"assurance",
"that",
"we",
"will",
"continue",
"to",
"meet",
"those",
"ratios",
"and",
"tests",
".",
"Adjusted",
"earnings",
"before",
"interest",
",",
"taxes",
",",
"depreciation",
"and",
"amortization",
"and",
"goodwill",
"impairment",
"(",
"EBITDA",
")",
"is",
"a",
"non-GAAP",
"measure",
"used",
"to",
"determine",
"our",
"compliance",
"with",
"certain",
"covenants",
"contained",
"in",
"the",
"indentures",
"governing",
"the",
"senior",
"notes",
"due",
"2015",
",",
"2018",
"and",
"2020",
"and",
"senior",
"subordinated",
"notes",
"due",
"2015",
"and",
"in",
"our",
"senior",
"secured",
"credit",
"facilities",
".",
"Adjusted",
"EBITDA",
"is",
"defined",
"as",
"EBITDA",
"further",
"adjusted",
"to",
"exclude",
"unusual",
"items",
"and",
"other",
"adjustments",
"permitted",
"in",
"calculating",
"covenant",
"compliance",
"under",
"the",
"indentures",
"and",
"our",
"senior",
"secured",
"credit",
"facilities",
".",
"We",
"believe",
"that",
"including",
"supplementary",
"information",
"concerning",
"Adjusted",
"EBITDA",
"is",
"appropriate",
"to",
"provide",
"additional",
"information",
"to",
"investors",
"to",
"demonstrate",
"compliance",
"with",
"our",
"financing",
"covenants",
".",
"The",
"breach",
"of",
"covenants",
"in",
"our",
"senior",
"secured",
"credit",
"facilities",
"that",
"are",
"tied",
"to",
"ratios",
"based",
"on",
"Adjusted",
"EBITDA",
"could",
"result",
"in",
"a",
"default",
"and",
"the",
"lenders",
"could",
"elect",
"to",
"declare",
"all",
"amounts",
"borrowed",
"due",
"and",
"payable",
".",
"Any",
"such",
"acceleration",
"would",
"also",
"result",
"in",
"a",
"default",
"under",
"our",
"indentures",
".",
"Additionally",
",",
"under",
"our",
"debt",
"agreements",
",",
"our",
"ability",
"to",
"engage",
"in",
"activities",
"such",
"as",
"incurring",
"additional",
"indebtedness",
",",
"making",
"investments",
"and",
"paying",
"dividends",
"is",
"also",
"tied",
"to",
"ratios",
"based",
"on",
"Adjusted",
"EBITDA",
".",
"Adjusted",
"EBITDA",
"does",
"not",
"represent",
"net",
"income",
"(",
"loss",
")",
"or",
"cash",
"flow",
"from",
"operations",
"as",
"those",
"terms",
"are",
"defined",
"by",
"GAAP",
"and",
"does",
"not",
"necessarily",
"indicate",
"whether",
"cash",
"flows",
"will",
"be",
"sufficient",
"to",
"fund",
"cash",
"needs",
".",
"While",
"Adjusted",
"EBITDA",
"and",
"similar",
"measures",
"are",
"frequently",
"used",
"as",
"measures",
"of",
"operations",
"and",
"the",
"ability",
"to",
"meet",
"debt",
"service",
"requirements",
",",
"these",
"terms",
"are",
"not",
"necessarily",
"comparable",
"to",
"other",
"similarly",
"titled",
"captions",
"of",
"other",
"companies",
"due",
"to",
"the",
"potential",
"inconsistencies",
"in",
"the",
"method",
"of",
"calculation",
".",
"Adjusted",
"EBITDA",
"does",
"not",
"reflect",
"the",
"impact",
"of",
"earnings",
"or",
"charges",
"resulting",
"from",
"matters",
"that",
"we",
"may",
"consider",
"not",
"to",
"be",
"indicative",
"of",
"our",
"ongoing",
"operations",
".",
"In",
"particular",
",",
"the",
"definition",
"of",
"Adjusted",
"EBITDA",
"in",
"the",
"indentures",
"allows",
"us",
"to",
"add",
"back",
"certain",
"noncash",
",",
"extraordinary",
"or",
"unusual",
"charges",
"that",
"are",
"deducted",
"in",
"calculating",
"net",
"income",
"(",
"loss",
")",
".",
"However",
",",
"these",
"are",
"expenses",
"that",
"may",
"recur",
",",
"vary",
"greatly",
"and",
"are",
"difficult",
"to",
"predict",
"."
] |
13 | 90621 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"loss",
")",
".",
"However",
",",
"these",
"are",
"expenses",
"that",
"may",
"recur",
",",
"vary",
"greatly",
"and",
"are",
"difficult",
"to",
"predict",
".",
"Further",
",",
"our",
"debt",
"instruments",
"require",
"that",
"Adjusted",
"EBITDA",
"be",
"calculated",
"for",
"the",
"most",
"recent",
"four",
"fiscal",
"quarters",
".",
"As",
"a",
"result",
",",
"the",
"measure",
"can",
"be",
"disproportionately",
"affected",
"by",
"a",
"particularly",
"strong",
"or",
"weak",
"quarter",
".",
"Further",
",",
"it",
"may",
"not",
"be",
"comparable",
"to",
"the",
"measure",
"for",
"any",
"subsequent",
"four-quarter",
"period",
"or",
"any",
"complete",
"fiscal",
"year",
".",
"The",
"following",
"is",
"a",
"reconciliation",
"of",
"net",
"loss",
",",
"which",
"is",
"a",
"GAAP",
"measure",
"of",
"our",
"operating",
"results",
",",
"to",
"Adjusted",
"EBITDA",
"as",
"defined",
"in",
"our",
"debt",
"agreements",
".",
"The",
"terms",
"and",
"related",
"calculations",
"are",
"defined",
"in",
"the",
"indentures",
".",
"Our",
"covenant",
"requirements",
"and",
"actual",
"ratios",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"are",
"as",
"follows",
":",
"We",
"do",
"not",
"use",
"derivative",
"financial",
"instruments",
"for",
"trading",
"or",
"speculative",
"purposes",
".",
"We",
"have",
"invested",
"our",
"available",
"cash",
"in",
"short-term",
",",
"highly",
"liquid",
"financial",
"instruments",
",",
"substantially",
"all",
"having",
"initial",
"maturities",
"of",
"three",
"months",
"or",
"less",
".",
"When",
"necessary",
",",
"we",
"have",
"borrowed",
"to",
"fund",
"acquisitions",
".",
"At",
"December",
"31",
",",
"2010",
",",
"we",
"had",
"total",
"debt",
"of",
"$",
"8.06",
"billion",
",",
"including",
"$",
"4.71",
"billion",
"of",
"variable",
"rate",
"debt",
".",
"our",
"variable",
"rate",
"debt",
".",
"Swap",
"agreements",
"expiring",
"in",
"February",
"2011",
"have",
"notional",
"values",
"of",
"$",
"800",
"million",
"and",
"$",
"750",
"million",
"and",
"effectively",
"fix",
"the",
"variable",
"portion",
"of",
"our",
"interest",
"rates",
"at",
"5.00",
"%",
"and",
"3.17",
"%",
",",
"respectively",
".",
"Swap",
"agreements",
"expiring",
"in",
"February",
"2012",
"have",
"a",
"notional",
"value",
"of",
"$",
"1.2",
"billion",
"and",
"effectively",
"fix",
"the",
"variable",
"portion",
"of",
"our",
"interest",
"rates",
"at",
"1.78",
"%",
".",
"Swap",
"agreements",
"expiring",
"in",
"May",
"2013",
"have",
"a",
"notional",
"value",
"of",
"$",
"500",
"million",
"and",
"effectively",
"fix",
"the",
"variable",
"portion",
"of",
"our",
"interest",
"rates",
"at",
"1.99",
"%",
".",
"Our",
"remaining",
"variable",
"rate",
"debt",
"of",
"$",
"1.46",
"billion",
"is",
"subject",
"to",
"changes",
"in",
"underlying",
"interest",
"rates",
",",
"and",
",",
"accordingly",
",",
"our",
"interest",
"payments",
"will",
"fluctuate",
".",
"During",
"the",
"period",
"when",
"all",
"of",
"our",
"interest",
"rate",
"swap",
"agreements",
"are",
"effective",
",",
"a",
"1",
"%",
"change",
"in",
"interest",
"rates",
"would",
"result",
"in",
"a",
"change",
"in",
"interest",
"of",
"approximately",
"$",
"15",
"million",
"per",
"year",
".",
"Upon",
"the",
"expiration",
"of",
"each",
"interest",
"rate",
"swap",
"agreement",
"in",
"February",
"2011",
"and",
"2012",
"and",
"May",
"2013",
",",
"a",
"1",
"%",
"change",
"in",
"interest",
"rates",
"would",
"result",
"in",
"a",
"change",
"in",
"interest",
"of",
"approximately",
"$",
"30",
"million",
",",
"$",
"42",
"million",
"and",
"$",
"47",
"million",
"per",
"year",
",",
"respectively",
".",
"See",
"Note",
"5",
"to",
"Consolidated",
"Financial",
"Statements",
".",
"During",
"2010",
",",
"approximately",
"31",
"%",
"of",
"our",
"revenue",
"was",
"from",
"customers",
"outside",
"the",
"United",
"States",
"with",
"approximately",
"67",
"%",
"of",
"this",
"revenue",
"coming",
"from",
"customers",
"located",
"in",
"the",
"United",
"Kingdom",
"and",
"Continental",
"Europe",
".",
"Only",
"a",
"portion",
"of",
"the",
"revenue",
"from",
"customers",
"outside",
"the",
"United",
"States",
"is",
"denominated",
"in",
"other",
"currencies",
","
] |
13 | 91081 | [
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Europe",
".",
"Only",
"a",
"portion",
"of",
"the",
"revenue",
"from",
"customers",
"outside",
"the",
"United",
"States",
"is",
"denominated",
"in",
"other",
"currencies",
",",
"the",
"majority",
"being",
"pounds",
"sterling",
"and",
"euros",
".",
"Revenue",
"and",
"expenses",
"of",
"our",
"foreign",
"operations",
"are",
"generally",
"denominated",
"in",
"their",
"respective",
"local",
"currencies",
".",
"We",
"continue",
"to",
"monitor",
"our",
"exposure",
"to",
"currency",
"exchange",
"rates",
".",
"We",
"enter",
"into",
"currency",
"hedging",
"transactions",
"from",
"time",
"to",
"time",
"to",
"mitigate",
"certain",
"currency",
"exposures",
"."
] |
14 | 91153 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"For",
"the",
"transition",
"period",
"from",
"______________",
"to",
"_____________",
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"registrant",
":",
"(",
"1",
")",
"has",
"filed",
"all",
"reports",
"required",
"to",
"be",
"filed",
"by",
"Section",
"13",
"or",
"15",
"(",
"d",
")",
"of",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
"during",
"the",
"preceding",
"12",
"months",
"(",
"or",
"for",
"such",
"shorter",
"period",
"that",
"the",
"registrant",
"was",
"required",
"to",
"file",
"such",
"reports",
")",
",",
"and",
"(",
"2",
")",
"has",
"been",
"subject",
"to",
"such",
"filing",
"requirements",
"for",
"the",
"past",
"90",
"days",
".",
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"registrant",
"has",
"submitted",
"electronically",
"and",
"posted",
"on",
"its",
"corporate",
"Web",
"site",
",",
"if",
"any",
",",
"every",
"Interactive",
"Data",
"File",
"required",
"to",
"be",
"submitted",
"and",
"posted",
"pursuant",
"to",
"Rule",
"405",
"of",
"Regulation",
"S-T",
"during",
"the",
"preceding",
"12",
"months",
"(",
"or",
"for",
"such",
"shorter",
"period",
"that",
"the",
"registrant",
"was",
"required",
"to",
"submit",
"and",
"post",
"such",
"files",
")",
".",
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"registrant",
"is",
"a",
"large",
"accelerated",
"filer",
",",
"an",
"accelerated",
"filed",
",",
"a",
"non-accelerated",
"filer",
"or",
"a",
"smaller",
"reporting",
"company",
".",
"See",
"definitions",
"of",
"“",
"large",
"accelerated",
"filer",
",",
"”",
"“",
"accelerated",
"filer",
"”",
"and",
"“",
"smaller",
"reporting",
"company",
"”",
"in",
"Rule",
"12b-2",
"of",
"the",
"Exchange",
"Act",
".",
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"registrant",
"is",
"a",
"shell",
"company",
"(",
"as",
"defined",
"in",
"Rule",
"12b-2",
"of",
"the",
"Exchange",
"Act",
")",
".",
"As",
"of",
"May",
"16",
",",
"2011",
",",
"there",
"were",
"3,157,096",
"shares",
"of",
"the",
"registrant",
"’",
"s",
"common",
"stock",
"outstanding",
".",
"The",
"accompanying",
"unaudited",
"interim",
"financial",
"statements",
"have",
"been",
"prepared",
"in",
"accordance",
"with",
"generally",
"accepted",
"accounting",
"principles",
"for",
"interim",
"financial",
"information",
"and",
"with",
"the",
"instructions",
"to",
"Form",
"10-Q",
"and",
"Regulation",
"S-X",
".",
"Accordingly",
",",
"they",
"do",
"not",
"include",
"all",
"of",
"the",
"information",
"and",
"footnotes",
"required",
"by",
"generally",
"accepted",
"accounting",
"principles",
"for",
"complete",
"financial",
"statements",
".",
"In",
"the",
"opinion",
"of",
"management",
",",
"all",
"adjustments",
"(",
"consisting",
"only",
"of",
"normal",
"recurring",
"accruals",
")",
"considered",
"necessary",
"for",
"a",
"fair",
"presentation",
"have",
"been",
"included",
".",
"Operating",
"results",
"for",
"the",
"three",
"month",
"period",
"ended",
"March",
"31",
",",
"2011",
"are",
"not",
"necessarily",
"indicative",
"of",
"the",
"results",
"that",
"may",
"be",
"expected",
"for",
"the",
"full",
"year",
".",
"The",
"December",
"31",
",",
"2010",
"balance",
"sheet",
"data",
"was",
"derived",
"from",
"audited",
"financial",
"statements",
",",
"but",
"does",
"not",
"include",
"all",
"disclosures",
"required",
"by",
"generally",
"accepted",
"accounting",
"principles",
".",
"For",
"additional",
"information",
",",
"refer",
"to",
"the",
"financial",
"statements",
"and",
"footnotes",
"thereto",
"included",
"in",
"Polonia",
"Bancorp",
"’",
"s",
"(",
"the",
"“",
"Company",
"”",
")",
"Form",
"10-K",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
".",
"Use",
"of",
"Estimates",
"in",
"the",
"Preparation",
"of",
"Financial",
"Statements",
".",
"The",
"preparation",
"of",
"financial",
"statements",
"in",
"conformity",
"with",
"U.",
"S.",
"generally",
"accepted",
"accounting",
"principles",
"requires",
"management",
"to",
"make",
"estimates",
"and",
"assumptions",
"that",
"affect",
"certain",
"recorded",
"amounts",
"and",
"disclosures"
] |
14 | 91581 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"U.",
"S.",
"generally",
"accepted",
"accounting",
"principles",
"requires",
"management",
"to",
"make",
"estimates",
"and",
"assumptions",
"that",
"affect",
"certain",
"recorded",
"amounts",
"and",
"disclosures",
".",
"Accordingly",
",",
"actual",
"results",
"could",
"differ",
"from",
"those",
"estimates",
".",
"The",
"most",
"significant",
"estimate",
"pertains",
"to",
"the",
"allowance",
"for",
"loan",
"losses",
".",
"In",
"October",
",",
"2010",
",",
"the",
"FASB",
"issued",
"ASU",
"2010-26",
",",
"Accounting",
"for",
"Costs",
"Associated",
"with",
"Acquiring",
"or",
"Renewing",
"Insurance",
"Contracts",
".",
"This",
"ASU",
"addresses",
"the",
"diversity",
"in",
"practice",
"regarding",
"the",
"interpretation",
"of",
"which",
"costs",
"relating",
"to",
"the",
"acquisition",
"of",
"new",
"or",
"renewal",
"insurance",
"contracts",
"qualify",
"for",
"deferral",
",",
"The",
"amendments",
"are",
"effective",
"for",
"fiscal",
"years",
"and",
"interim",
"periods",
"within",
"those",
"fiscal",
"years",
",",
"beginning",
"after",
"December",
"15",
",",
"2011",
"and",
"are",
"not",
"expected",
"to",
"have",
"a",
"significant",
"impact",
"on",
"the",
"Company",
"’",
"s",
"financial",
"statements",
".",
"In",
"January",
"2011",
",",
"the",
"FASB",
"issued",
"ASU",
"2011-01",
",",
"Receivables",
"(",
"Topic",
"310",
")",
":",
"Deferral",
"of",
"the",
"Effective",
"Date",
"of",
"Disclosures",
"about",
"Troubled",
"Debt",
"Restructurings",
"in",
"Update",
"No.",
"The",
"amendments",
"in",
"this",
"Update",
"temporarily",
"delay",
"the",
"effective",
"date",
"of",
"the",
"disclosures",
"about",
"troubled",
"debt",
"restructurings",
"in",
"Update",
"2010-20",
",",
"enabling",
"public-entity",
"creditors",
"to",
"provide",
"those",
"disclosures",
"after",
"the",
"FASB",
"clarifies",
"the",
"guidance",
"for",
"determining",
"what",
"constitutes",
"a",
"troubled",
"debt",
"restructuring",
".",
"The",
"deferral",
"in",
"this",
"Update",
"will",
"result",
"in",
"more",
"consistent",
"disclosures",
"about",
"troubled",
"debt",
"restructurings",
".",
"This",
"amendment",
"does",
"not",
"defer",
"the",
"effective",
"date",
"of",
"the",
"other",
"disclosure",
"requirements",
"in",
"Update",
"2010-20",
".",
"In",
"the",
"proposed",
"Update",
"for",
"determining",
"what",
"constitutes",
"a",
"troubled",
"debt",
"restructuring",
",",
"the",
"FASB",
"proposed",
"that",
"the",
"clarifications",
"would",
"be",
"effective",
"for",
"interim",
"and",
"annual",
"periods",
"ending",
"after",
"June",
"15",
",",
"2011",
".",
"For",
"the",
"new",
"disclosures",
"about",
"troubled",
"debt",
"restructurings",
"in",
"Update",
"2010-20",
",",
"those",
"clarifications",
"would",
"be",
"applied",
"retrospectively",
"to",
"the",
"beginning",
"of",
"the",
"fiscal",
"year",
"in",
"which",
"the",
"proposal",
"is",
"adopted",
".",
"The",
"adoption",
"of",
"this",
"guidance",
"in",
"not",
"expected",
"to",
"have",
"a",
"significant",
"impact",
"on",
"the",
"Company",
"’",
"s",
"financial",
"statements",
".",
"In",
"April",
"2011",
",",
"the",
"FASB",
"issued",
"ASU",
"2011-02",
",",
"Receivables",
"(",
"Topic",
"310",
")",
":",
"A",
"Creditor",
"’",
"s",
"Determination",
"of",
"Whether",
"a",
"Restructuring",
"Is",
"a",
"Troubled",
"Debt",
"Restructuring",
".",
"The",
"amendments",
"in",
"this",
"Update",
"provide",
"additional",
"guidance",
"or",
"clarification",
"to",
"help",
"creditors",
"in",
"determining",
"whether",
"a",
"creditor",
"has",
"granted",
"a",
"concession",
"and",
"whether",
"a",
"debtor",
"is",
"experiencing",
"financial",
"difficulties",
"for",
"purposes",
"of",
"determining",
"whether",
"a",
"restructuring",
"constitutes",
"a",
"troubled",
"debt",
"restructuring",
".",
"The",
"amendments",
"in",
"this",
"Update",
"are",
"effective",
"for",
"the",
"first",
"interim",
"or",
"annual",
"reporting",
"period",
"beginning",
"on",
"or",
"after",
"June",
"15",
",",
"2011",
",",
"and",
"should",
"be",
"applied",
"retrospectively",
"to",
"the",
"beginning",
"annual",
"period",
"of",
"adoption",
".",
"As",
"a",
"result",
"of",
"applying",
"these",
"amendments",
",",
"an",
"entity",
"may",
"identify",
"receivables",
"that",
"are",
"newly"
] |
14 | 92011 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"period",
"of",
"adoption",
".",
"As",
"a",
"result",
"of",
"applying",
"these",
"amendments",
",",
"an",
"entity",
"may",
"identify",
"receivables",
"that",
"are",
"newly",
"considered",
"impaired",
".",
"For",
"purposes",
"of",
"measuring",
"impairment",
"of",
"those",
"receivables",
",",
"an",
"entity",
"should",
"apply",
"the",
"amendments",
"prospectively",
"for",
"the",
"first",
"interim",
"or",
"annual",
"period",
"beginning",
"on",
"or",
"after",
"June",
"15",
",",
"2011",
".",
"This",
"ASU",
"is",
"not",
"expected",
"to",
"have",
"a",
"significant",
"impact",
"on",
"the",
"Company",
"’",
"s",
"financial",
"statements",
".",
"Certain",
"items",
"previously",
"reported",
"have",
"been",
"reclassified",
"to",
"conform",
"to",
"the",
"current",
"year",
"’",
"s",
"reporting",
"format",
".",
"Such",
"reclassifications",
"did",
"not",
"affect",
"consolidated",
"net",
"income",
"or",
"consolidated",
"stockholders",
"’",
"equity",
".",
"Options",
"to",
"purchase",
"153,903",
"shares",
"at",
"$",
"9.40",
"per",
"share",
"of",
"common",
"stock",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"as",
"well",
"as",
"17,442",
"shares",
"and",
"29,754",
"shares",
"of",
"restricted",
"stock",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"respectively",
",",
"were",
"not",
"included",
"in",
"the",
"computation",
"of",
"diluted",
"earnings",
"per",
"share",
"because",
"to",
"do",
"so",
"would",
"have",
"been",
"anti-dilutive",
".",
"During",
"2010",
",",
"the",
"Company",
"acquired",
"certain",
"assets",
"and",
"assumed",
"certain",
"liabilities",
"of",
"Earthstar",
"Bank",
"(",
"“",
"Earthstar",
"”",
")",
"in",
"loss-share",
"transactions",
"facilitated",
"by",
"the",
"Federal",
"Deposit",
"Insurance",
"Corporation",
"(",
"“",
"FDIC",
"”",
")",
".",
"Under",
"the",
"loss-share",
"agreements",
",",
"the",
"Company",
"will",
"share",
"in",
"the",
"losses",
"on",
"assets",
"(",
"loans",
"and",
"other",
"real",
"estate",
"owned",
")",
"covered",
"under",
"the",
"agreement",
"(",
"referred",
"to",
"as",
"“",
"covered",
"loans",
"”",
"and",
"“",
"non-covered",
"loans",
"purchased",
"”",
")",
".",
"See",
"Note",
"3",
"of",
"the",
"notes",
"to",
"our",
"December",
"31",
",",
"2010",
"audited",
"consolidated",
"financial",
"statements",
"contained",
"in",
"our",
"Annual",
"Report",
"Form",
"10-K",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"for",
"additional",
"information",
".",
"In",
"complying",
"with",
"U.",
"S.",
"generally",
"accepted",
"accounting",
"principles",
",",
"the",
"Company",
"has",
"developed",
"the",
"following",
"table",
",",
"which",
"includes",
"the",
"tax",
"effects",
"of",
"the",
"components",
"of",
"other",
"comprehensive",
"income",
".",
"Other",
"comprehensive",
"income",
"consists",
"of",
"net",
"unrealized",
"gains",
"on",
"securities",
"available",
"for",
"sale",
".",
"Other",
"comprehensive",
"income",
"and",
"related",
"tax",
"effects",
"for",
"the",
"indicated",
"periods",
",",
"consists",
"of",
":",
"The",
"amortized",
"cost",
"and",
"fair",
"value",
"of",
"investment",
"securities",
"available",
"for",
"sale",
"are",
"summarized",
"as",
"follows",
":",
"The",
"following",
"table",
"shows",
"the",
"Company",
"’",
"s",
"gross",
"unrealized",
"losses",
"and",
"fair",
"value",
",",
"aggregated",
"by",
"investment",
"category",
"and",
"length",
"of",
"time",
"that",
"the",
"individual",
"securities",
"have",
"been",
"in",
"a",
"continuous",
"loss",
"position",
".",
"The",
"Company",
"reviews",
"its",
"position",
"quarterly",
"and",
"has",
"determined",
"that",
"at",
"March",
"31",
",",
"2011",
",",
"the",
"declines",
"outlined",
"in",
"the",
"above",
"table",
"represent",
"temporary",
"declines",
"and",
"the",
"Company",
"does",
"not",
"intend",
"to",
"sell",
"these",
"securities",
"and",
"does",
"not",
"believe",
"they",
"will",
"be",
"required",
"to",
"sell",
"these",
"securities",
"before",
"recovery",
"of",
"their",
"cost",
"basis",
",",
"which",
"may",
"be",
"at",
"maturity",
".",
"There",
"were",
"23",
"positions",
"that"
] |
14 | 92451 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
5,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"these",
"securities",
"before",
"recovery",
"of",
"their",
"cost",
"basis",
",",
"which",
"may",
"be",
"at",
"maturity",
".",
"There",
"were",
"23",
"positions",
"that",
"were",
"temporarily",
"impaired",
"at",
"March",
"31",
",",
"2011",
"and",
"eight",
"positions",
"that",
"were",
"temporarily",
"impaired",
"at",
"December",
"31",
",",
"2010",
".",
"The",
"Company",
"has",
"concluded",
"that",
"the",
"unrealized",
"losses",
"disclosed",
"above",
"are",
"not",
"other",
"than",
"temporary",
"but",
"are",
"the",
"result",
"of",
"interest",
"rate",
"changes",
",",
"sector",
"credit",
"ratings",
"changes",
"or",
"company",
"specific",
"ratings",
"changes",
"that",
"are",
"not",
"expected",
"to",
"result",
"in",
"the",
"non-collection",
"of",
"principal",
"and",
"interest",
"during",
"the",
"period",
".",
"The",
"amortized",
"cost",
"and",
"fair",
"value",
"of",
"debt",
"securities",
"at",
"March",
"31",
",",
"2011",
",",
"by",
"contractual",
"maturity",
",",
"are",
"shown",
"below",
".",
"Mortgage-backed",
"securities",
"provide",
"for",
"periodic",
",",
"generally",
"monthly",
",",
"payments",
"of",
"principal",
"and",
"interest",
"and",
"have",
"contractual",
"maturities",
"ranging",
"from",
"1",
"to",
"32",
"years",
".",
"Expected",
"maturities",
"will",
"differ",
"from",
"contractual",
"maturities",
"because",
"borrowers",
"may",
"have",
"the",
"right",
"to",
"call",
"or",
"prepay",
"obligations",
"with",
"or",
"without",
"call",
"or",
"prepayment",
"penalties",
".",
"For",
"the",
"period",
"ending",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"realized",
"no",
"gross",
"gains",
"from",
"the",
"sale",
"of",
"investments",
"securities",
"as",
"compared",
"to",
"realized",
"gross",
"gains",
"of",
"$",
"293,815",
"and",
"proceeds",
"of",
"$",
"6,483,428",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
".",
"Loans",
"receivable",
"consist",
"of",
"the",
"following",
":",
"The",
"Company",
"’",
"s",
"loan",
"portfolio",
"consists",
"predominantly",
"of",
"one-to-four",
"family",
"unit",
"first",
"mortgage",
"loans",
"in",
"the",
"northwest",
"suburban",
"area",
"of",
"metropolitan",
"Philadelphia",
",",
"primarily",
"in",
"Montgomery",
"and",
"Bucks",
"Counties",
".",
"These",
"loans",
"are",
"typically",
"secured",
"by",
"first",
"lien",
"positions",
"on",
"the",
"respective",
"real",
"estate",
"properties",
"and",
"are",
"subject",
"to",
"the",
"Bank",
"’",
"s",
"loan",
"underwriting",
"policies",
".",
"In",
"general",
",",
"the",
"Company",
"’",
"s",
"loan",
"portfolio",
"performance",
"at",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
"is",
"dependent",
"upon",
"the",
"local",
"economic",
"conditions",
".",
"At",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"had",
"$",
"31.7",
"million",
"(",
"net",
"of",
"fair",
"value",
"adjustments",
")",
"of",
"covered",
"loans",
"(",
"covered",
"under",
"loss",
"share",
"agreements",
"with",
"the",
"FDIC",
")",
".",
"Covered",
"loans",
"were",
"recorded",
"at",
"fair",
"value",
"pursuant",
"to",
"the",
"purchase",
"accounting",
"guidelines",
".",
"Purchased",
"loans",
"acquired",
"in",
"a",
"business",
"combination",
",",
"including",
"loans",
"purchased",
"in",
"our",
"FDIC-assisted",
"transactions",
",",
"are",
"recorded",
"at",
"estimated",
"fair",
"value",
"on",
"their",
"purchase",
"date",
"without",
"a",
"carryover",
"of",
"the",
"related",
"allowance",
"for",
"loan",
"losses",
".",
"Upon",
"acquisition",
",",
"the",
"Company",
"evaluated",
"whether",
"each",
"acquired",
"loan",
"(",
"regardless",
"of",
"size",
")",
"was",
"within",
"the",
"scope",
"of",
"ASC",
"310-30",
",",
"Receivables-Loans",
"and",
"Debt",
"Securities",
"Acquired",
"with",
"Deteriorated",
"Credit",
"Quality",
".",
"Purchased",
"credit",
"–impaired",
"loans",
"are",
"loans",
"that",
"have",
"evidence",
"of",
"credit",
"deterioration",
"since",
"origination",
"and",
"it",
"is",
"probable",
"at",
"the",
"date",
"of",
"acquisition",
"that",
"the",
"Company",
"will",
"not",
"collect",
"all",
"contractually",
"required",
"principal",
"and",
"interest",
"payments",
".",
"The",
"carrying",
"value",
"of"
] |
14 | 92891 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"of",
"acquisition",
"that",
"the",
"Company",
"will",
"not",
"collect",
"all",
"contractually",
"required",
"principal",
"and",
"interest",
"payments",
".",
"The",
"carrying",
"value",
"of",
"covered",
"loans",
"acquired",
"with",
"deteriorated",
"credit",
"quality",
"was",
"$",
"1.9",
"million",
"at",
"March",
"31",
",",
"2011",
".",
"There",
"were",
"no",
"material",
"increases",
"or",
"decreases",
"in",
"the",
"expected",
"cash",
"flows",
"of",
"covered",
"loans",
"between",
"December",
"10",
",",
"2010",
"(",
"the",
"“",
"acquisition",
"date",
"”",
")",
"and",
"March",
"31",
",",
"2011",
".",
"The",
"fair",
"value",
"of",
"purchased",
"credit-impaired",
"loans",
",",
"on",
"the",
"acquisition",
"date",
",",
"was",
"determined",
",",
"primarily",
"based",
"on",
"the",
"fair",
"value",
"of",
"loan",
"collateral",
".",
"The",
"carrying",
"value",
"of",
"covered",
"loans",
",",
"not",
"exhibiting",
"evidence",
"of",
"credit",
"impairment",
"at",
"March",
"31",
",",
"2011",
"was",
"$",
"29.8",
"million",
".",
"The",
"fair",
"value",
"of",
"loans",
"that",
"were",
"not",
"credit-impaired",
"was",
"determined",
"based",
"on",
"estimates",
"of",
"losses",
"on",
"defaults",
"and",
"other",
"market",
"factors",
".",
"The",
"components",
"of",
"covered",
"loans",
"by",
"portfolio",
"class",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
"were",
"as",
"follows",
":",
"The",
"following",
"table",
"shows",
"the",
"breakdown",
"of",
"covered",
"loans",
"that",
"are",
"current",
",",
"past",
"due",
",",
"non-accrual",
",",
"and",
"loans",
"past",
"due",
"greater",
"than",
"90",
"days",
"and",
"still",
"accruing",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"The",
"following",
"table",
"presents",
"covered",
"loans",
"that",
"currently",
"are",
"not",
"accruing",
"interest",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"Changes",
"in",
"the",
"accretable",
"yield",
"for",
"purchased",
"credit-impaired",
"loans",
"were",
"as",
"follows",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
".",
"In",
"our",
"FDIC-assisted",
"transaction",
"(",
"see",
"Note",
"3",
")",
",",
"the",
"fair",
"value",
"of",
"purchased",
"credit-impaired",
"loans",
",",
"on",
"the",
"acquisition",
"date",
",",
"was",
"determined",
"based",
"on",
"assigned",
"risk",
"ratings",
",",
"expected",
"cash",
"flows",
"and",
"the",
"fair",
"value",
"of",
"loan",
"collateral",
".",
"The",
"fair",
"value",
"of",
"loans",
"that",
"were",
"not",
"credit-impaired",
"was",
"determined",
"based",
"on",
"estimates",
"of",
"losses",
"on",
"defaults",
"and",
"other",
"market",
"factors",
".",
"Due",
"to",
"the",
"loss-share",
"agreement",
"with",
"the",
"FDIC",
",",
"the",
"Company",
"recorded",
"a",
"receivable",
"from",
"the",
"FDIC",
"equal",
"to",
"the",
"present",
"value",
"of",
"the",
"corresponding",
"reimbursement",
"percentages",
"on",
"the",
"estimated",
"losses",
"embedded",
"in",
"the",
"loan",
"portfolio",
".",
"Management",
"has",
"an",
"established",
"methodology",
"to",
"determine",
"the",
"adequacy",
"of",
"the",
"allowance",
"for",
"loan",
"losses",
"that",
"assesses",
"the",
"risks",
"and",
"losses",
"inherent",
"in",
"the",
"loan",
"portfolio",
".",
"For",
"purposes",
"of",
"determining",
"the",
"allowance",
"for",
"loan",
"losses",
",",
"the",
"Company",
"has",
"segmented",
"certain",
"loans",
"in",
"the",
"portfolio",
"by",
"product",
"type",
".",
"Loans",
"are",
"segmented",
"into",
"the",
"following",
"pools",
":",
"commercial",
"loans",
",",
"commercial",
"real",
"estate",
"loans",
",",
"residential",
"real",
"estate",
"loans",
",",
"and",
"consumer",
"loans",
".",
"Historical",
"loss",
"percentages",
"for",
"each",
"risk",
"category",
"are",
"calculated",
"and",
"used",
"as",
"the",
"basis",
"for",
"calculating",
"allowance",
"allocations",
".",
"These",
"historical",
"loss",
"percentages",
"are",
"calculated",
"over",
"a",
"three",
"year",
"period",
"for",
"all",
"portfolio",
"segments",
".",
"Certain",
"qualitative",
"factors",
"are",
"then",
"added"
] |
14 | 93341 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"loss",
"percentages",
"are",
"calculated",
"over",
"a",
"three",
"year",
"period",
"for",
"all",
"portfolio",
"segments",
".",
"Certain",
"qualitative",
"factors",
"are",
"then",
"added",
"to",
"the",
"historical",
"allocation",
"percentage",
"to",
"get",
"the",
"adjusted",
"factor",
"to",
"be",
"applied",
"to",
"nonclassified",
"loans",
".",
"The",
"following",
"qualitative",
"factors",
"are",
"analyzed",
"for",
"each",
"portfolio",
"segment",
":",
"These",
"qualitative",
"factors",
"are",
"reviewed",
"each",
"quarter",
"and",
"adjusted",
"based",
"upon",
"relevant",
"changes",
"within",
"the",
"portfolio",
".",
"During",
"2011",
",",
"the",
"qualitative",
"factors",
"were",
"reviewed",
"and",
"remained",
"unchanged",
".",
"Changes",
"in",
"the",
"allowance",
"for",
"loan",
"losses",
"for",
"the",
"quarter",
"ended",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
"are",
"as",
"follows",
":",
"The",
"total",
"allowance",
"reflects",
"management",
"'s",
"estimate",
"of",
"loan",
"losses",
"inherent",
"in",
"the",
"loan",
"portfolio",
"at",
"the",
"balance",
"sheet",
"date",
".",
"The",
"Company",
"considers",
"the",
"allowance",
"for",
"loan",
"losses",
"of",
"$",
"1,146,354",
"adequate",
"to",
"cover",
"loan",
"losses",
"inherent",
"in",
"the",
"loan",
"portfolio",
",",
"at",
"March",
"31",
",",
"2011",
".",
"Included",
"in",
"the",
"allowance",
"for",
"loan",
"losses",
"is",
"$",
"283,715",
"related",
"to",
"loans",
"covered",
"by",
"loss-share",
"agreements",
"with",
"the",
"FDIC",
".",
"The",
"following",
"table",
"presents",
"the",
"activity",
"in",
"the",
"allowance",
"for",
"loan",
"losses",
",",
"balance",
"in",
"allowance",
"for",
"loan",
"losses",
"and",
"recorded",
"investment",
"in",
"loans",
"by",
"portfolio",
"segment",
"and",
"based",
"on",
"impairment",
"method",
"of",
"non-covered",
"loans",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"The",
"following",
"table",
"presents",
"the",
"activity",
"in",
"the",
"allowance",
"for",
"loan",
"losses",
",",
"balance",
"in",
"allowance",
"for",
"loan",
"losses",
"and",
"recorded",
"investment",
"in",
"loans",
"by",
"portfolio",
"segment",
"and",
"based",
"on",
"impairment",
"method",
"of",
"covered",
"loans",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"The",
"following",
"tables",
"represent",
"credit",
"exposures",
"by",
"internally",
"assigned",
"grades",
"for",
"quarter",
"ended",
"March",
"31",
",",
"2011",
".",
"The",
"grading",
"analysis",
"estimates",
"the",
"capability",
"of",
"the",
"borrower",
"to",
"repay",
"the",
"contractual",
"obligations",
"of",
"the",
"loan",
"agreements",
"as",
"scheduled",
"or",
"at",
"all",
".",
"The",
"Company",
"'s",
"internal",
"credit",
"risk",
"grading",
"system",
"is",
"based",
"on",
"experiences",
"with",
"similarly",
"graded",
"loans",
".",
"The",
"Company",
"'s",
"internally",
"assigned",
"grades",
"are",
"as",
"follows",
":",
"Pass",
"–",
"loans",
"which",
"are",
"protected",
"by",
"the",
"current",
"net",
"worth",
"and",
"paying",
"capacity",
"of",
"the",
"obligor",
"or",
"by",
"the",
"value",
"of",
"the",
"underlying",
"collateral",
".",
"There",
"are",
"three",
"sub-grades",
"within",
"the",
"pass",
"category",
"to",
"further",
"distinguish",
"the",
"loan",
".",
"Special",
"Mention",
"–",
"loans",
"where",
"a",
"potential",
"weakness",
"or",
"risk",
"exists",
",",
"which",
"could",
"cause",
"a",
"more",
"serious",
"problem",
"if",
"not",
"corrected",
".",
"Substandard",
"–",
"loans",
"that",
"have",
"a",
"well-defined",
"weakness",
"based",
"on",
"objective",
"evidence",
"and",
"are",
"characterized",
"by",
"the",
"distinct",
"possibility",
"that",
"the",
"Bank",
"will",
"sustain",
"some",
"loss",
"if",
"the",
"deficiencies",
"are",
"not",
"corrected",
".",
"Doubtful",
"–",
"loans",
"classified",
"as",
"doubtful",
"have",
"all",
"the",
"weaknesses",
"inherent",
"in",
"a",
"substandard",
"asset",
".",
"In",
"addition",
",",
"these",
"weaknesses",
"make",
"collection",
"or",
"liquidation",
"in",
"full",
"highly",
"questionable",
"and",
"improbable",
",",
"based",
"on",
"existing",
"circumstances",
".",
"Loss",
"–",
"loans",
"classified",
"as",
"a",
"loss",
"are",
"considered",
"uncollectible",
",",
"or",
"of",
"such",
"value",
"that",
"continuance",
"as",
"an",
"asset",
"is",
"not",
"warranted"
] |
14 | 93811 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"classified",
"as",
"a",
"loss",
"are",
"considered",
"uncollectible",
",",
"or",
"of",
"such",
"value",
"that",
"continuance",
"as",
"an",
"asset",
"is",
"not",
"warranted",
".",
"The",
"following",
"table",
"presents",
"classes",
"of",
"the",
"loan",
"portfolio",
"summarized",
"by",
"the",
"aggregate",
"Pass",
"and",
"the",
"criticized",
"categories",
"of",
"Special",
"Mention",
",",
"Substandard",
",",
"Doubtful",
",",
"and",
"Loss",
"within",
"the",
"internal",
"risk",
"rating",
"system",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
":",
"For",
"one-to-four",
"family",
"real",
"estate",
",",
"home",
"equity",
",",
"HELOCs",
",",
"and",
"education",
"and",
"other",
"loans",
",",
"the",
"Company",
"evaluates",
"credit",
"quality",
"based",
"on",
"the",
"performance",
"of",
"the",
"individual",
"credits",
".",
"Payment",
"activity",
"is",
"reviewed",
"by",
"management",
"on",
"a",
"monthly",
"basis",
"to",
"determine",
"how",
"loans",
"are",
"performing",
".",
"Loans",
"are",
"considered",
"to",
"be",
"nonperforming",
"when",
"they",
"become",
"90",
"days",
"past",
"due",
".",
"The",
"following",
"table",
"presents",
"recorded",
"investment",
"in",
"the",
"loan",
"classes",
"based",
"on",
"payment",
"activity",
"as",
"of",
"March",
"31",
",",
"2011and",
"December",
"31",
",",
"2010",
":",
"Following",
"is",
"a",
"table",
"which",
"includes",
"an",
"aging",
"analysis",
"of",
"the",
"recorded",
"investment",
"of",
"past",
"due",
"loans",
":",
"Multi-family",
"and",
"commercial",
"loans",
"are",
"considered",
"for",
"nonaccrual",
"status",
"upon",
"90",
"days",
"delinquency",
"and",
",",
"one-to-four",
"family",
"loans",
"are",
"considered",
"for",
"nonaccrual",
"status",
"after",
"120",
"days",
".",
"When",
"a",
"loan",
"is",
"placed",
"in",
"nonaccrual",
"status",
",",
"previously",
"accrued",
"but",
"unpaid",
"interest",
"is",
"deducted",
"from",
"interest",
"income",
".",
"On",
"the",
"following",
"table",
"are",
"the",
"loans",
"on",
"nonaccrual",
"status",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"The",
"balances",
"are",
"presented",
"by",
"class",
"of",
"loans",
".",
"The",
"company",
"had",
"nonaccrual",
"loans",
"of",
"$",
"906,795",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"$",
"1,022,512",
"as",
"of",
"December",
"31",
",",
"2010",
".",
"Interest",
"income",
"on",
"loans",
"would",
"have",
"been",
"increased",
"by",
"approximately",
"$",
"1,007",
"and",
"$",
"48,193",
"during",
"those",
"periods",
",",
"if",
"these",
"loans",
"had",
"performed",
"in",
"accordance",
"with",
"their",
"original",
"terms",
".",
"Management",
"evaluates",
"commercial",
"real",
"estate",
"loans",
"which",
"are",
"90",
"days",
"or",
"more",
"past",
"due",
"to",
"be",
"impaired",
".",
"At",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"there",
"were",
"no",
"loans",
"considered",
"to",
"be",
"impaired",
".",
"Deposit",
"accounts",
"are",
"summarized",
"as",
"follows",
"for",
"the",
"periods",
"ending",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
".",
"The",
"Bank",
"has",
"a",
"Supplemental",
"Life",
"Insurance",
"Plan",
"(",
"the",
"“",
"Plan",
"”",
")",
"for",
"three",
"officers",
"of",
"the",
"Bank",
".",
"The",
"Plan",
"requires",
"the",
"Bank",
"to",
"make",
"annual",
"payments",
"to",
"the",
"beneficiaries",
"upon",
"their",
"death",
".",
"In",
"connection",
"with",
"the",
"Plan",
",",
"the",
"Bank",
"funded",
"life",
"insurance",
"policies",
"with",
"an",
"original",
"investment",
"of",
"$",
"3,085,000",
"on",
"the",
"lives",
"of",
"those",
"officers",
".",
"These",
"life",
"insurance",
"policies",
"currently",
"have",
"a",
"death",
"benefit",
"of",
"$",
"11,975,329",
".",
"The",
"cash",
"surrender",
"value",
"of",
"these",
"policies",
"totaled",
"$",
"4,157,636",
"and"
] |
14 | 94241 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"currently",
"have",
"a",
"death",
"benefit",
"of",
"$",
"11,975,329",
".",
"The",
"cash",
"surrender",
"value",
"of",
"these",
"policies",
"totaled",
"$",
"4,157,636",
"and",
"$",
"4,140,267",
"at",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"respectively",
".",
"The",
"Plan",
"provides",
"that",
"death",
"benefits",
"totaling",
"$",
"6.0",
"million",
"at",
"March",
"31",
",",
"2011",
",",
"will",
"be",
"paid",
"to",
"their",
"beneficiaries",
"in",
"the",
"event",
"the",
"officers",
"should",
"die",
".",
"Additionally",
",",
"the",
"Bank",
"has",
"a",
"Supplemental",
"Retirement",
"Plan",
"(",
"“",
"SRP",
"”",
")",
"for",
"the",
"Bank",
"’",
"s",
"current",
"and",
"former",
"presidents",
"as",
"well",
"as",
"two",
"senior",
"officers",
"of",
"the",
"Bank",
".",
"At",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"$",
"1,545,446",
"and",
"$",
"1,520,087",
"had",
"been",
"accrued",
"under",
"these",
"SRPs",
",",
"respectively",
",",
"and",
"this",
"liability",
"and",
"the",
"related",
"deferred",
"tax",
"assets",
"of",
"$",
"525,452",
"and",
"$",
"516,830",
"for",
"the",
"respective",
"periods",
",",
"are",
"recognized",
"in",
"the",
"financial",
"statements",
".",
"The",
"deferred",
"compensation",
"for",
"the",
"current",
"and",
"former",
"president",
"is",
"to",
"be",
"paid",
"for",
"the",
"remainder",
"of",
"their",
"lives",
"commencing",
"with",
"the",
"first",
"year",
"following",
"the",
"termination",
"of",
"employment",
"after",
"completion",
"of",
"required",
"service",
".",
"The",
"current",
"president",
"’",
"s",
"payment",
"is",
"based",
"on",
"60",
"percent",
"of",
"his",
"final",
"full",
"year",
"annual",
"gross",
"taxable",
"compensation",
"adjusted",
"annually",
"for",
"the",
"change",
"in",
"the",
"consumer",
"price",
"index",
"or",
"4",
"percent",
",",
"whichever",
"is",
"higher",
".",
"The",
"former",
"president",
"’",
"s",
"payment",
"is",
"based",
"on",
"60",
"percent",
"of",
"his",
"final",
"full",
"year",
"annual",
"gross",
"taxable",
"compensation",
"adjusted",
"annually",
"for",
"the",
"change",
"in",
"the",
"consumer",
"price",
"index",
".",
"The",
"deferred",
"compensation",
"for",
"the",
"two",
"senior",
"officers",
"is",
"to",
"be",
"paid",
"at",
"the",
"rate",
"of",
"$",
"50,000",
"per",
"year",
"for",
"twenty",
"years",
"commencing",
"five",
"years",
"after",
"retirement",
"or",
"age",
"65",
",",
"whichever",
"comes",
"first",
",",
"following",
"the",
"termination",
"of",
"employment",
".",
"The",
"Company",
"records",
"periodic",
"accruals",
"for",
"thecost",
"of",
"providing",
"such",
"benefits",
"by",
"charges",
"to",
"income",
".",
"The",
"amount",
"accrued",
"was",
"approximately",
"$",
"54,790",
"and",
"$",
"38,064",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"respectively",
".",
"The",
"accruals",
"change",
"each",
"year",
"based",
"on",
"a",
"discount",
"rate",
"of",
"6.25",
"percent",
"used",
"in",
"determining",
"the",
"estimated",
"liability",
"that",
"will",
"be",
"accrued",
"when",
"the",
"employees",
"are",
"eligible",
"for",
"benefits",
".",
"The",
"following",
"table",
"illustrates",
"the",
"components",
"of",
"the",
"net",
"periodic",
"benefit",
"cost",
"for",
"the",
"supplemental",
"retirement",
"plan",
":",
"Generally",
"Accepted",
"Accounting",
"Principles",
"(",
"“",
"GAAP",
"”",
")",
"establishes",
"a",
"hierarchal",
"disclosure",
"framework",
"associated",
"with",
"the",
"level",
"of",
"pricing",
"observability",
"utilized",
"in",
"measuring",
"assets",
"and",
"liabilities",
"at",
"fair",
"value",
".",
"The",
"three",
"broad",
"levels",
"defined",
"by",
"GAAP",
"hierarchy",
"are",
"as",
"follows",
":",
"Level",
"I",
":",
"Quoted",
"prices",
"are",
"available",
"in",
"active",
"markets",
"for",
"identical",
"assets",
"or",
"liabilities",
"as",
"of",
"the",
"reported",
"date",
".",
"Level",
"II",
":",
"Pricing",
"inputs",
"are",
"other",
"than",
"the",
"quoted",
"prices"
] |
14 | 94681 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"assets",
"or",
"liabilities",
"as",
"of",
"the",
"reported",
"date",
".",
"Level",
"II",
":",
"Pricing",
"inputs",
"are",
"other",
"than",
"the",
"quoted",
"prices",
"in",
"active",
"markets",
",",
"which",
"are",
"either",
"directly",
"or",
"indirectly",
"observable",
"as",
"of",
"the",
"reported",
"date",
".",
"The",
"nature",
"of",
"these",
"assets",
"and",
"liabilities",
"includes",
"items",
"for",
"which",
"quoted",
"prices",
"are",
"available",
"but",
"traded",
"less",
"frequently",
"and",
"items",
"that",
"are",
"fair-valued",
"using",
"other",
"financial",
"instruments",
",",
"the",
"parameters",
"of",
"which",
"can",
"be",
"directly",
"observed",
".",
"Level",
"III",
":",
"Assets",
"and",
"liabilities",
"that",
"have",
"little",
"to",
"no",
"pricing",
"observability",
"as",
"of",
"the",
"reported",
"date",
".",
"These",
"items",
"do",
"not",
"have",
"two-way",
"markets",
"and",
"are",
"measured",
"using",
"management",
"’",
"s",
"best",
"estimate",
"of",
"fair",
"value",
",",
"where",
"the",
"inputs",
"into",
"the",
"determination",
"of",
"fair",
"value",
"require",
"significant",
"management",
"judgment",
"or",
"estimation",
".",
"The",
"following",
"table",
"presents",
"the",
"assets",
"reported",
"on",
"the",
"consolidated",
"balance",
"sheets",
"at",
"their",
"fair",
"value",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"respectively",
",",
"by",
"level",
"within",
"the",
"fair",
"value",
"hierarchy",
".",
"As",
"required",
"by",
"GAAP",
",",
"financial",
"assets",
"and",
"liabilities",
"are",
"classified",
"in",
"their",
"entirety",
"based",
"on",
"the",
"lowest",
"level",
"of",
"input",
"that",
"is",
"significant",
"to",
"the",
"fair",
"value",
"measurement",
".",
"All",
"of",
"the",
"securities",
"classified",
"as",
"available",
"for",
"sale",
"are",
"reported",
"at",
"fair",
"value",
"utilizing",
"Level",
"2",
"inputs",
".",
"For",
"these",
"securities",
",",
"the",
"Company",
"obtains",
"fair",
"value",
"measurements",
"from",
"an",
"independent",
"pricing",
"service",
".",
"The",
"fair",
"value",
"measurements",
"consider",
"observable",
"data",
"that",
"may",
"include",
"dealer",
"quoted",
"market",
"spreads",
",",
"cash",
"flows",
",",
"the",
"U.S.",
"Treasury",
"yield",
"curve",
",",
"live",
"trading",
"levels",
",",
"trade",
"execution",
"data",
",",
"market",
"consensus",
"prepayment",
"speeds",
",",
"credit",
"information",
"and",
"the",
"bond",
"’",
"s",
"terms",
"and",
"conditions",
",",
"among",
"other",
"things",
".",
"In",
"certain",
"cases",
",",
"the",
"inputs",
"used",
"to",
"measure",
"fair",
"value",
"may",
"fall",
"into",
"different",
"levels",
"of",
"the",
"fair",
"value",
"hierarchy",
".",
"In",
"such",
"cases",
",",
"the",
"level",
"in",
"the",
"fair",
"value",
"hierarchy",
",",
"within",
"which",
"the",
"fair",
"value",
"measurement",
"in",
"its",
"entirety",
"falls",
",",
"has",
"been",
"determined",
"based",
"on",
"the",
"lowest",
"level",
"input",
"that",
"is",
"significant",
"to",
"the",
"fair",
"value",
"measurement",
"in",
"its",
"entirety",
".",
"The",
"Company",
"’",
"s",
"assessment",
"of",
"the",
"significance",
"of",
"a",
"particular",
"input",
"to",
"the",
"fair",
"value",
"measurement",
"in",
"its",
"entirety",
"requires",
"judgment",
",",
"and",
"considers",
"factors",
"specific",
"to",
"the",
"asset",
".",
"The",
"measurement",
"of",
"fair",
"value",
"should",
"be",
"consistent",
"with",
"one",
"of",
"the",
"following",
"valuation",
"techniques",
":",
"market",
"approach",
",",
"income",
"approach",
",",
"and/or",
"cost",
"approach",
".",
"The",
"market",
"approach",
"uses",
"prices",
"and",
"other",
"relevant",
"information",
"generated",
"by",
"market",
"transactions",
"involving",
"identical",
"or",
"comparable",
"assets",
"or",
"liabilities",
"(",
"including",
"a",
"business",
")",
".",
"For",
"example",
",",
"valuation",
"techniques",
"consistent",
"with",
"the",
"market",
"approach",
"often",
"use",
"market",
"multiples",
"derived",
"from",
"a",
"set",
"of",
"comparables",
".",
"Multiples",
"might",
"lie",
"in",
"ranges",
"with",
"a",
"different",
"multiple",
"for",
"each",
"comparable",
".",
"The",
"selection",
"of",
"where",
"within",
"the",
"range",
"the",
"appropriate",
"multiple",
"falls",
"requires",
"judgment",
",",
"considering",
"factors",
"specific",
"to",
"the",
"measurement",
"(",
"qualitative",
"and",
"quantitative",
")",
".",
"Valuation",
"techniques",
"consistent",
"with",
"the",
"market"
] |
14 | 95161 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"judgment",
",",
"considering",
"factors",
"specific",
"to",
"the",
"measurement",
"(",
"qualitative",
"and",
"quantitative",
")",
".",
"Valuation",
"techniques",
"consistent",
"with",
"the",
"market",
"approach",
"include",
"matrix",
"pricing",
".",
"Matrix",
"pricing",
"is",
"a",
"mathematical",
"technique",
"used",
"principally",
"to",
"value",
"debt",
"securities",
"without",
"relying",
"exclusively",
"on",
"quoted",
"prices",
"for",
"the",
"specific",
"securities",
",",
"but",
"rather",
"by",
"relying",
"on",
"the",
"securities",
"’",
"relationship",
"to",
"other",
"benchmark",
"quoted",
"securities",
".",
"As",
"of",
"March",
"31",
",",
"2011",
",",
"all",
"of",
"the",
"financial",
"assets",
"measured",
"at",
"fair",
"value",
"utilized",
"the",
"market",
"approach",
".",
"The",
"estimated",
"fair",
"values",
"of",
"the",
"Company",
"’",
"s",
"financial",
"instruments",
"are",
"as",
"follows",
":",
"Financial",
"instruments",
"are",
"defined",
"as",
"cash",
",",
"evidence",
"of",
"ownership",
"interest",
"in",
"an",
"entity",
",",
"or",
"a",
"contract",
"that",
"creates",
"an",
"obligation",
"or",
"right",
"to",
"receive",
"or",
"deliver",
"cash",
"or",
"another",
"financial",
"instrument",
"from/to",
"a",
"second",
"entity",
"on",
"potentially",
"favorable",
"or",
"unfavorable",
"terms",
".",
"Fair",
"value",
"is",
"defined",
"as",
"the",
"amount",
"at",
"which",
"a",
"financial",
"instrument",
"could",
"be",
"exchanged",
"in",
"a",
"current",
"transaction",
"between",
"willing",
"parties",
"other",
"than",
"in",
"a",
"forced",
"or",
"liquidation",
"sale",
".",
"If",
"a",
"quoted",
"market",
"price",
"is",
"available",
"for",
"a",
"financial",
"instrument",
",",
"the",
"estimated",
"fair",
"value",
"would",
"be",
"calculated",
"based",
"upon",
"the",
"market",
"price",
"per",
"trading",
"unit",
"of",
"the",
"instrument",
".",
"If",
"no",
"readily",
"available",
"market",
"exists",
",",
"the",
"fair",
"value",
"estimates",
"for",
"financial",
"instruments",
"should",
"be",
"based",
"upon",
"management",
"’",
"s",
"judgment",
"regarding",
"current",
"economic",
"conditions",
",",
"interest",
"rate",
"risk",
",",
"expected",
"cash",
"flows",
",",
"future",
"estimated",
"losses",
",",
"and",
"other",
"factors",
"as",
"determined",
"through",
"various",
"option",
"pricing",
"formulas",
"or",
"stimulation",
"modeling",
".",
"As",
"many",
"of",
"these",
"assumptions",
"result",
"from",
"judgments",
"made",
"by",
"management",
"based",
"upon",
"estimates",
"that",
"are",
"inherently",
"uncertain",
",",
"the",
"resulting",
"estimated",
"fair",
"values",
"may",
"not",
"be",
"indicative",
"of",
"the",
"amount",
"realizable",
"in",
"the",
"sale",
"of",
"a",
"particular",
"financial",
"instrument",
".",
"In",
"addition",
",",
"changes",
"in",
"assumptions",
"on",
"which",
"the",
"estimated",
"fair",
"values",
"are",
"based",
"may",
"have",
"a",
"significant",
"impact",
"on",
"the",
"resulting",
"estimated",
"fair",
"values",
".",
"As",
"certain",
"assets",
"such",
"as",
"deferred",
"tax",
"assets",
"and",
"premises",
"and",
"equipment",
"are",
"not",
"considered",
"financial",
"instruments",
",",
"the",
"estimated",
"fair",
"value",
"of",
"financial",
"instruments",
"would",
"not",
"represent",
"the",
"full",
"value",
"of",
"the",
"Company",
".",
"The",
"Company",
"employed",
"simulation",
"modeling",
"in",
"determining",
"the",
"estimated",
"fair",
"value",
"of",
"financial",
"instruments",
"for",
"which",
"quoted",
"market",
"prices",
"were",
"not",
"available",
"based",
"upon",
"the",
"following",
"assumptions",
".",
"The",
"fair",
"value",
"is",
"equal",
"to",
"the",
"current",
"carrying",
"value",
".",
"The",
"fair",
"value",
"of",
"investment",
"securities",
"available",
"for",
"sale",
"and",
"held",
"to",
"maturity",
"is",
"equal",
"to",
"the",
"available",
"quoted",
"market",
"price",
".",
"If",
"no",
"quoted",
"market",
"price",
"is",
"available",
",",
"fair",
"value",
"is",
"estimated",
"using",
"the",
"quoted",
"market",
"price",
"for",
"similar",
"securities",
".",
"The",
"fair",
"value",
"is",
"estimated",
"by",
"discounting",
"future",
"cash",
"flows",
"using",
"current",
"market",
"inputs",
"at",
"which",
"loans",
"with",
"similar",
"terms",
"and",
"qualities",
"would",
"be",
"made",
"to",
"borrowers",
"of",
"similar",
"credit",
"quality",
".",
"Where",
"quoted",
"market",
"prices",
"were",
"available",
",",
"primarily",
"for",
"certain",
"residential",
"mortgage",
"loans",
",",
"such",
"market",
"rates",
"were",
"utilized",
"as",
"estimates",
"for",
"fair",
"value",
".",
"The",
"indemnification",
"asset",
"represents",
"the",
"present",
"value",
"of",
"the",
"estimated",
"cash"
] |
14 | 95651 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"rates",
"were",
"utilized",
"as",
"estimates",
"for",
"fair",
"value",
".",
"The",
"indemnification",
"asset",
"represents",
"the",
"present",
"value",
"of",
"the",
"estimated",
"cash",
"payments",
"expected",
"to",
"be",
"received",
"from",
"the",
"FDIC",
"for",
"future",
"losses",
"on",
"covered",
"assets",
"based",
"on",
"the",
"credit",
"adjustment",
"estimated",
"for",
"each",
"covered",
"asset",
"and",
"loss",
"sharing",
"percentages",
".",
"These",
"cash",
"flows",
"are",
"discounted",
"at",
"a",
"market-based",
"rate",
"to",
"reflect",
"the",
"uncertainty",
"of",
"the",
"timing",
"and",
"receipt",
"of",
"the",
"loss",
"sharing",
"reimbursement",
"from",
"the",
"FDIC",
".",
"The",
"fair",
"values",
"of",
"certificates",
"of",
"deposit",
"and",
"FHLB",
"advances",
"–",
"long-term",
"are",
"based",
"on",
"the",
"discounted",
"value",
"of",
"contractual",
"cash",
"flows",
".",
"The",
"discount",
"rates",
"are",
"estimated",
"using",
"rates",
"currently",
"offered",
"for",
"similar",
"instruments",
"with",
"similar",
"remaining",
"maturities",
".",
"Demand",
",",
"savings",
",",
"and",
"money",
"market",
"deposits",
"are",
"valued",
"at",
"the",
"amount",
"payable",
"on",
"demand",
"as",
"of",
"year-end",
".",
"The",
"fair",
"value",
"is",
"equal",
"to",
"the",
"cash",
"surrender",
"value",
"of",
"the",
"life",
"insurance",
"policies",
".",
"These",
"financial",
"instruments",
"are",
"generally",
"not",
"subject",
"to",
"sale",
",",
"and",
"estimated",
"fair",
"values",
"are",
"not",
"readily",
"available",
".",
"The",
"carrying",
"value",
",",
"represented",
"by",
"the",
"net",
"deferred",
"fee",
"arising",
"from",
"the",
"unrecognized",
"commitment",
",",
"and",
"the",
"fair",
"value",
",",
"determined",
"by",
"discounting",
"the",
"remaining",
"contractual",
"fee",
"over",
"the",
"term",
"of",
"the",
"commitment",
"using",
"fees",
"currently",
"charged",
"to",
"enter",
"into",
"similar",
"agreements",
"with",
"similar",
"credit",
"risk",
",",
"are",
"not",
"considered",
"material",
"for",
"disclosure",
".",
"The",
"contractual",
"amounts",
"of",
"unfunded",
"commitments",
"are",
"presented",
"in",
"the",
"Liquidity",
"and",
"Capital",
"Management",
"section",
"below",
".",
"Management",
"’",
"s",
"discussion",
"and",
"analysis",
"of",
"the",
"Company",
"’",
"s",
"financial",
"condition",
"and",
"results",
"of",
"operations",
"is",
"intended",
"to",
"assist",
"in",
"understanding",
"the",
"financial",
"condition",
"and",
"results",
"of",
"operations",
"of",
"Polonia",
"Bancorp",
".",
"The",
"information",
"contained",
"in",
"this",
"section",
"should",
"be",
"read",
"in",
"conjunction",
"with",
"the",
"Unaudited",
"Consolidated",
"Financial",
"Statements",
"and",
"footnotes",
"appearing",
"in",
"Part",
"I",
",",
"Item",
"1",
"of",
"this",
"document",
".",
"This",
"report",
"contains",
"forward-looking",
"statements",
"that",
"are",
"based",
"on",
"assumptions",
"and",
"may",
"describe",
"future",
"plans",
",",
"strategies",
"and",
"expectations",
"of",
"Polonia",
"MHC",
",",
"Polonia",
"Bancorp",
"and",
"Polonia",
"Bank",
".",
"These",
"forward-looking",
"statements",
"are",
"generally",
"identified",
"by",
"use",
"of",
"the",
"words",
"“",
"believe",
",",
"”",
"“",
"expect",
",",
"”",
"“",
"intend",
",",
"”",
"“",
"anticipate",
",",
"”",
"“",
"estimate",
",",
"”",
"“",
"project",
"”",
"or",
"similar",
"expressions",
".",
"Polonia",
"MHC",
"’",
"s",
",",
"Polonia",
"Bancorp",
"’",
"s",
"and",
"Polonia",
"Bank",
"’",
"s",
"ability",
"to",
"predict",
"results",
"or",
"the",
"actual",
"effect",
"of",
"future",
"plans",
"or",
"strategies",
"is",
"inherently",
"uncertain",
".",
"Factors",
"which",
"could",
"have",
"a",
"material",
"adverse",
"effect",
"on",
"the",
"operations",
"of",
"the",
"Company",
"and",
"its",
"subsidiary",
"include",
",",
"but",
"are",
"not",
"limited",
"to",
"the",
"following",
":",
"the",
"ability",
"to",
"successfully",
"integrate",
"the",
"operations",
"of",
"Earthstar",
"Bank",
";",
"changes",
"in",
"interest",
"rates",
";",
"national",
"and",
"regional",
"economic",
"conditions",
";",
"legislative",
"and",
"regulatory",
"changes",
";",
"monetary"
] |
14 | 96091 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Earthstar",
"Bank",
";",
"changes",
"in",
"interest",
"rates",
";",
"national",
"and",
"regional",
"economic",
"conditions",
";",
"legislative",
"and",
"regulatory",
"changes",
";",
"monetary",
"and",
"fiscal",
"policies",
"of",
"the",
"U.S.",
"government",
";",
"including",
"policies",
"of",
"the",
"U.S.",
"Treasury",
"and",
"the",
"Federal",
"Reserve",
"Board",
";",
"the",
"quality",
"and",
"composition",
"of",
"the",
"loan",
"or",
"investment",
"portfolios",
";",
"demand",
"for",
"loan",
"products",
";",
"deposit",
"flows",
";",
"competition",
";",
"demand",
"for",
"financial",
"services",
"in",
"the",
"Company",
"’",
"s",
"market",
"area",
";",
"changes",
"in",
"real",
"estate",
"market",
"values",
"in",
"the",
"Company",
"’",
"s",
"market",
"area",
";",
"and",
"changes",
"in",
"relevant",
"accounting",
"principles",
"and",
"guidelines",
".",
"Additionally",
",",
"other",
"risks",
"and",
"uncertainties",
"are",
"described",
"herein",
"and",
"in",
"the",
"Company",
"’",
"s",
"Form",
"10-K",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"under",
"“",
"Item",
"1A",
":",
"Risk",
"Factors",
"”",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"“",
"SEC",
"”",
")",
"which",
"is",
"available",
"through",
"the",
"SEC",
"’",
"s",
"website",
"at",
"www.sec.gov",
".",
"These",
"risks",
"and",
"uncertainties",
"should",
"be",
"considered",
"in",
"evaluating",
"forward-looking",
"statements",
"and",
"undue",
"reliance",
"should",
"not",
"be",
"placed",
"on",
"such",
"statements",
".",
"Except",
"as",
"required",
"by",
"applicable",
"law",
"or",
"regulation",
",",
"the",
"Company",
"does",
"not",
"undertake",
",",
"and",
"specifically",
"disclaims",
"any",
"obligation",
",",
"to",
"release",
"publicly",
"the",
"result",
"of",
"any",
"revisions",
"that",
"may",
"be",
"made",
"to",
"any",
"forward-looking",
"statements",
"to",
"reflect",
"events",
"or",
"circumstances",
"after",
"the",
"date",
"of",
"the",
"statements",
"or",
"to",
"reflect",
"the",
"occurrence",
"of",
"anticipated",
"or",
"unanticipated",
"events",
".",
"Polonia",
"Bancorp",
"was",
"organized",
"as",
"a",
"federally",
"chartered",
"corporation",
"at",
"the",
"direction",
"of",
"the",
"Bank",
"in",
"January",
"2007",
"to",
"become",
"the",
"mid-tier",
"stock",
"holding",
"company",
"for",
"the",
"Bank",
"upon",
"the",
"completion",
"of",
"its",
"reorganization",
"into",
"the",
"mutual",
"holding",
"company",
"form",
"of",
"organization",
".",
"As",
"a",
"result",
"of",
"the",
"reorganization",
",",
"Polonia",
"Bancorp",
"’",
"s",
"business",
"activities",
"are",
"the",
"ownership",
"of",
"the",
"outstanding",
"capital",
"stock",
"of",
"Polonia",
"Bank",
"and",
"management",
"of",
"the",
"investment",
"of",
"offering",
"proceeds",
"retained",
"from",
"the",
"reorganization",
".",
"Currently",
",",
"Polonia",
"Bancorp",
"neither",
"owns",
"or",
"leases",
"any",
"property",
",",
"but",
"instead",
"uses",
"the",
"premises",
",",
"equipment",
"and",
"other",
"property",
"of",
"Polonia",
"Bank",
"and",
"pays",
"appropriate",
"rental",
"fees",
",",
"as",
"by",
"required",
"applicable",
"law",
"and",
"regulations",
".",
"In",
"the",
"future",
",",
"Polonia",
"Bancorp",
"may",
"acquire",
"or",
"organize",
"other",
"operating",
"subsidiaries",
";",
"however",
",",
"there",
"are",
"no",
"current",
"plans",
",",
"arrangements",
",",
"or",
"understandings",
",",
"written",
"or",
"oral",
",",
"to",
"do",
"so",
".",
"Polonia",
"Bank",
"operates",
"as",
"a",
"community-oriented",
"financial",
"institution",
"offering",
"a",
"variety",
"of",
"deposit",
"products",
"as",
"well",
"as",
"providing",
"residential",
"real",
"estate",
"loans",
",",
"and",
"to",
"a",
"lesser",
"degree",
",",
"multi-family",
"and",
"nonresidential",
"real",
"estate",
"loans",
",",
"home",
"equity",
"loans",
"and",
"consumer",
"loans",
"primarily",
"to",
"individuals",
",",
"families",
"and",
"small",
"businesses",
"located",
"in",
"Bucks",
",",
"Philadelphia",
"and",
"Montgomery",
"Counties",
",",
"Pennsylvania",
".",
"The",
"Bank",
"operates",
"from",
"nine",
"full-service",
"locations",
",",
"including",
"our",
"main"
] |
14 | 96531 | [
5,
0,
5,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
3,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Bucks",
",",
"Philadelphia",
"and",
"Montgomery",
"Counties",
",",
"Pennsylvania",
".",
"The",
"Bank",
"operates",
"from",
"nine",
"full-service",
"locations",
",",
"including",
"our",
"main",
"office",
"in",
"Huntingdon",
"Valley",
",",
"Pennsylvania",
"and",
"our",
"branch",
"offices",
"in",
"the",
"city",
"of",
"Philadelphia",
"and",
"Bucks",
"County",
".",
"On",
"December",
"10",
",",
"2010",
",",
"Polonia",
"Bank",
"assumed",
"certain",
"of",
"the",
"deposits",
"and",
"acquired",
"certain",
"assets",
"of",
"Earthstar",
"Bank",
",",
"a",
"state",
"charted",
"bank",
"from",
"the",
"Federal",
"Deposit",
"Insurance",
"Corporation",
"(",
"“",
"FDIC",
"”",
")",
",",
"as",
"receiver",
"for",
"Earthstar",
"Bank",
".",
"We",
"acquired",
"approximately",
"$",
"67",
"million",
"in",
"assets",
",",
"including",
"approximately",
"$",
"42",
"million",
"in",
"loans",
"(",
"comprised",
"primarily",
"of",
"single-family",
"residential",
"and",
"home",
"equity",
"loans",
"(",
"“",
"Single-Family",
"Loans",
"”",
")",
"and",
"commercial",
"business",
"and",
"commercial",
"real",
"estate",
"loans",
"(",
"“",
"Commercial",
"Loans",
"”",
")",
")",
",",
"and",
"approximately",
"$",
"8",
"million",
"in",
"investments",
"securities",
".",
"We",
"also",
"assumed",
"approximately",
"$",
"90",
"million",
"in",
"deposits",
".",
"We",
"consider",
"accounting",
"policies",
"involving",
"significant",
"judgments",
"and",
"assumptions",
"by",
"management",
"that",
"have",
",",
"or",
"could",
"have",
",",
"a",
"material",
"impact",
"on",
"the",
"carrying",
"value",
"of",
"certain",
"assets",
"or",
"on",
"income",
"to",
"be",
"critical",
"accounting",
"policies",
".",
"We",
"consider",
"the",
"following",
"to",
"be",
"our",
"critical",
"accounting",
"policies",
".",
"SecuritiesSecurities",
"are",
"reported",
"at",
"fair",
"value",
"adjusted",
"for",
"premiums",
"and",
"discounts",
"which",
"are",
"recognized",
"in",
"interest",
"income",
"using",
"the",
"interest",
"method",
"over",
"the",
"period",
"to",
"maturity",
".",
"Declines",
"in",
"the",
"fair",
"value",
"of",
"individual",
"securities",
"below",
"their",
"amortized",
"cost",
",",
"and",
"that",
"are",
"deemed",
"to",
"be",
"other",
"than",
"temporary",
",",
"will",
"be",
"written",
"down",
"to",
"current",
"market",
"value",
"and",
"included",
"in",
"earnings",
"as",
"realized",
"losses",
".",
"Management",
"systematically",
"evaluates",
"securities",
"for",
"other",
"than",
"temporary",
"declines",
"in",
"fair",
"value",
"on",
"a",
"quarterly",
"basis",
".",
"Allowance",
"for",
"loan",
"lossesThe",
"allowance",
"for",
"loan",
"losses",
"is",
"increased",
"by",
"charges",
"to",
"income",
"and",
"decreased",
"by",
"charge-offs",
"(",
"net",
"of",
"recoveries",
")",
".",
"The",
"Company",
"’",
"s",
"periodic",
"evaluation",
"of",
"the",
"adequacy",
"of",
"the",
"allowance",
"for",
"loan",
"losses",
"is",
"determined",
"by",
"management",
"through",
"evaluation",
"of",
"the",
"loss",
"exposure",
"on",
"individual",
"non-performing",
",",
"delinquent",
"and",
"high-dollar",
"loans",
";",
"review",
"of",
"economic",
"conditions",
"and",
"business",
"trends",
";",
"historical",
"loss",
"experience",
"and",
"growth",
"and",
"composition",
"of",
"the",
"loan",
"portfolio",
",",
"as",
"well",
"as",
"other",
"relevant",
"factors",
".",
"A",
"quantitative",
"analysis",
"is",
"utilized",
"to",
"support",
"the",
"adequacy",
"of",
"the",
"allowance",
"for",
"loan",
"losses",
".",
"This",
"analysis",
"includes",
"review",
"of",
"historical",
"charge-off",
"rates",
"for",
"loan",
"categories",
",",
"fluctuations",
"and",
"trends",
"in",
"the",
"amount",
"of",
"classified",
"loans",
"and",
"economic",
"factors",
".",
"Significant",
"to",
"this",
"analysis",
"are",
"any",
"changes",
"in",
"observable",
"trends",
"that",
"may",
"be",
"occurring",
"relative",
"to",
"loans",
"to",
"assess",
"potential",
"weaknesseswithin",
"the",
"credit",
".",
"Current",
"economic",
"factors",
"and",
"trends",
"in",
"risk",
"ratings",
"are",
"considered",
"in",
"the",
"determination",
"and",
"allocation",
"of",
"the",
"allowance",
"for",
"loan",
"losses",
".",
"Income",
"taxes.The",
"Company",
"files",
"a",
"consolidated",
"federal",
"income",
"tax",
"return",
".",
"Deferred",
"tax",
"assets",
"and",
"liabilities",
"are",
"computed"
] |
14 | 96981 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"losses",
".",
"Income",
"taxes.The",
"Company",
"files",
"a",
"consolidated",
"federal",
"income",
"tax",
"return",
".",
"Deferred",
"tax",
"assets",
"and",
"liabilities",
"are",
"computed",
"based",
"on",
"the",
"difference",
"between",
"the",
"financial",
"statement",
"and",
"the",
"income",
"tax",
"basis",
"of",
"assets",
"and",
"liabilities",
"using",
"the",
"enacted",
"marginal",
"tax",
"rates",
".",
"Deferred",
"income",
"taxes",
"or",
"benefits",
"are",
"based",
"on",
"changes",
"in",
"the",
"deferred",
"tax",
"asset",
"or",
"liability",
"from",
"period",
"to",
"period",
".",
"Deferred",
"tax",
"assets",
"and",
"liabilities",
"are",
"reflected",
"at",
"currently",
"enacted",
"income",
"tax",
"rates",
"applicable",
"to",
"the",
"period",
"in",
"which",
"such",
"items",
"are",
"expected",
"to",
"be",
"realized",
"or",
"settled",
".",
"As",
"changes",
"in",
"tax",
"rates",
"are",
"enacted",
",",
"deferred",
"tax",
"assets",
"and",
"liabilities",
"are",
"adjusted",
"through",
"the",
"provision",
"for",
"income",
"taxes",
".",
"Total",
"assets",
"at",
"March",
"31",
",",
"2011",
"were",
"$",
"279.1",
"million",
",",
"a",
"decrease",
"of",
"$",
"19.7",
"million",
",",
"or",
"6.6",
"%",
",",
"from",
"total",
"assets",
"of",
"$",
"298.8",
"million",
"at",
"December",
"31",
",",
"2010",
".",
"The",
"decrease",
"in",
"assets",
"resulted",
"primarily",
"from",
"a",
"$",
"46.0",
"million",
"decrease",
"in",
"cash",
"and",
"cash",
"equivalents",
",",
"partially",
"offset",
"by",
"a",
"$",
"27.4",
"million",
"increase",
"in",
"investment",
"securities",
"held",
"to",
"maturity",
".",
"Total",
"liabilities",
"at",
"March",
"31",
",",
"2011",
"were",
"$",
"251.8",
"million",
"compared",
"to",
"$",
"271.6",
"million",
"at",
"December",
"31",
",",
"2010",
",",
"a",
"decrease",
"of",
"$",
"19.8",
"million",
",",
"or",
"7.3",
"%",
".",
"The",
"decrease",
"in",
"liabilities",
"was",
"primarily",
"due",
"to",
"a",
"$",
"22.4",
"million",
"decrease",
"in",
"deposits",
",",
"partially",
"offset",
"by",
"a",
"$",
"5.0",
"million",
"increase",
"in",
"FHLB",
"advances-short-term",
".",
"Total",
"stockholder",
"’",
"s",
"equity",
"increased",
"to",
"$",
"27.4",
"million",
"at",
"March",
"31",
",",
"2011",
"from",
"$",
"27.3",
"million",
"at",
"December",
"31",
",",
"2010",
",",
"an",
"increase",
"of",
"$",
"100,000",
",",
"or",
"0.4",
"%",
",",
"primarily",
"as",
"a",
"result",
"of",
"our",
"operating",
"profit",
".",
"Cash",
"and",
"cash",
"equivalents",
"decreased",
"to",
"$",
"8.0",
"million",
"from",
"$",
"54.0",
"million",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"a",
"decrease",
"of",
"$",
"46.0",
"million",
",",
"or",
"85.2",
"%",
".",
"The",
"decrease",
"in",
"cash",
"and",
"cash",
"equivalents",
"was",
"attributable",
",",
"in",
"part",
",",
"to",
"the",
"purchase",
"of",
"$",
"29.0",
"million",
"in",
"investment",
"securities",
"held",
"to",
"maturity",
"and",
"the",
"decrease",
"of",
"$",
"22.4",
"million",
"in",
"deposits",
",",
"partially",
"offset",
"by",
"a",
"$",
"5",
"million",
"increase",
"in",
"FHLB",
"advances",
"–",
"short",
"term",
".",
"Investment",
"securities",
"available",
"for",
"sale",
"decreased",
"to",
"$",
"25.7",
"million",
"from",
"$",
"27.4",
"million",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"a",
"decrease",
"of",
"$",
"1.7",
"million",
",",
"or",
"6.2",
"%",
".",
"The",
"decrease",
"in",
"investment",
"securities",
"available",
"for",
"sale",
"was",
"attributable",
"to",
"payments",
"received",
"of",
"$",
"1.6",
"million",
".",
"Investment",
"securities",
"held",
"to",
"maturity",
"increased",
"to",
"$",
"53.5",
"million",
"from",
"$"
] |
14 | 97401 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"to",
"payments",
"received",
"of",
"$",
"1.6",
"million",
".",
"Investment",
"securities",
"held",
"to",
"maturity",
"increased",
"to",
"$",
"53.5",
"million",
"from",
"$",
"26.1",
"million",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"an",
"increase",
"of",
"$",
"27.4",
"million",
",",
"or",
"104.9",
"%",
".",
"The",
"increase",
"in",
"investment",
"securities",
"held",
"to",
"maturity",
"was",
"attributable",
",",
"in",
"part",
",",
"to",
"the",
"purchase",
"of",
"$",
"29.0",
"million",
"in",
"mortgaged-backed",
"securities",
",",
"partially",
"offset",
"by",
"$",
"1.6",
"million",
"in",
"payments",
"received",
".",
"Loans",
"receivable",
",",
"net",
",",
"increased",
"$",
"2.1",
"million",
",",
"or",
"1.5",
"%",
",",
"to",
"$",
"139.8",
"million",
"at",
"March",
"31",
",",
"2011",
",",
"compared",
"to",
"$",
"137.7",
"million",
"at",
"December",
"31",
",",
"2010",
".",
"The",
"size",
"of",
"our",
"1-4",
"family",
"mortgage",
"loan",
"portfolio",
"increased",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"due",
"primarily",
"to",
"an",
"increase",
"in",
"loan",
"originations",
"during",
"the",
"quarter",
".",
"The",
"Bank",
"did",
"not",
"sell",
"any",
"loans",
"during",
"the",
"quarter",
".",
"Total",
"deposits",
"decreased",
"to",
"$",
"217.3",
"million",
"from",
"$",
"239.7",
"million",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"a",
"decrease",
"of",
"$",
"22.4",
"million",
",",
"or",
"9.3",
"%",
".",
"The",
"decrease",
"in",
"deposits",
"was",
"attributable",
",",
"in",
"part",
",",
"to",
"the",
"outflow",
"of",
"$",
"17.5",
"million",
"in",
"time",
"deposits",
",",
"as",
"rates",
"offered",
"on",
"the",
"maturity",
"of",
"time",
"deposits",
"were",
"below",
"rates",
"offered",
"in",
"the",
"marketplace",
"and",
"a",
"$",
"3.3",
"million",
"decrease",
"in",
"money",
"market",
"accounts",
".",
"We",
"utilize",
"borrowings",
"from",
"the",
"FHLB",
"of",
"Pittsburgh",
"to",
"supplement",
"our",
"supply",
"of",
"funds",
"for",
"loans",
"and",
"investments",
".",
"The",
"$",
"5.0",
"million",
"increase",
"in",
"FHLB",
"advances",
"short-term",
"was",
"due",
"to",
"more",
"attractive",
"shorter",
"term",
"funding",
"opportunities",
"available",
"through",
"advances",
".",
"The",
"proceeds",
"of",
"these",
"borrowings",
"were",
"used",
"to",
"fund",
"the",
"outflow",
"of",
"higher",
"interest",
"earning",
"certificates",
"of",
"deposit",
"which",
"matured",
"during",
"the",
"quarter",
".",
"We",
"recorded",
"net",
"income",
"of",
"$",
"52,000",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"compared",
"to",
"net",
"income",
"of",
"$",
"216,000",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2010",
".",
"The",
"higher",
"net",
"income",
"for",
"the",
"three",
"months",
"ended",
"March",
"2010",
"period",
"was",
"primarily",
"related",
"to",
"higher",
"noninterest",
"income",
",",
"partially",
"offset",
"by",
"higher",
"noninterest",
"expense",
".",
"Net",
"Interest",
"Income",
".",
"The",
"following",
"table",
"summarizes",
"changes",
"in",
"interest",
"income",
"and",
"expense",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
".",
"The",
"following",
"table",
"summarizes",
"average",
"balances",
"and",
"average",
"yields",
"and",
"costs",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
".",
"Our",
"net",
"interest",
"rate",
"spread",
"increased",
"to",
"3.35",
"%",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"from",
"3.07",
"%",
"for",
"the",
"same",
"period",
"in",
"2010",
".",
"Net",
"interest",
"income",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011"
] |
14 | 97831 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"%",
"for",
"the",
"same",
"period",
"in",
"2010",
".",
"Net",
"interest",
"income",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"increased",
"$",
"697,000",
"to",
"$",
"2.3",
"million",
",",
"or",
"4.3",
"%",
"from",
"$",
"1.6",
"million",
"during",
"the",
"same",
"period",
"last",
"year",
".",
"The",
"primary",
"reasons",
"for",
"the",
"increase",
"in",
"net",
"interest",
"income",
"for",
"the",
"three",
"month",
"period",
"reflects",
"a",
"higher",
"average",
"balance",
"of",
"loans",
"and",
"investment",
"securities",
"primarily",
"related",
"to",
"the",
"acquisition",
"of",
"assets",
"from",
"the",
"former",
"Earthstar",
"Bank",
",",
"a",
"lower",
"average",
"interest",
"rate",
"paid",
"on",
"money",
"market",
"accounts",
",",
"savings",
"accounts",
",",
"time",
"deposits",
"and",
"FHLB",
"advances",
".",
"The",
"average",
"balance",
"of",
"loans",
"increased",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"due",
"to",
"the",
"increased",
"balance",
"of",
"loan",
"acquired",
"from",
"the",
"former",
"Earthstar",
"Bank",
",",
"increased",
"loan",
"originations",
"from",
"the",
"same",
"period",
"last",
"year",
"as",
"well",
"as",
"lower",
"loan",
"sales",
"during",
"the",
"current",
"period",
"as",
"compared",
"to",
"last",
"year",
".",
"Lower",
"interest",
"expense",
"on",
"deposits",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"was",
"due",
"to",
"a",
"continuing",
"decline",
"in",
"market",
"interest",
"rates",
".",
"The",
"increase",
"in",
"the",
"average",
"balance",
"of",
"investment",
"securities",
"during",
"the",
"three",
"month",
"period",
"ended",
"March",
"31",
",",
"2011",
"was",
"due",
"to",
"the",
"purchase",
"of",
"investment",
"securities",
"held",
"to",
"maturity",
"as",
"well",
"as",
"the",
"securities",
"acquired",
"from",
"the",
"former",
"Earthstar",
"Bank",
".",
"Provision",
"for",
"Loan",
"Losses",
".",
"We",
"recorded",
"a",
"provision",
"for",
"loan",
"losses",
"of",
"$",
"309,000",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"as",
"compared",
"to",
"a",
"credit",
"provision",
"for",
"loan",
"losses",
"of",
"$",
"134,000",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2010",
".",
"The",
"increase",
"in",
"the",
"provision",
"is",
"directly",
"related",
"to",
"the",
"increased",
"balance",
"in",
"loans",
"during",
"the",
"quarter",
"primarily",
"as",
"a",
"result",
"of",
"the",
"purchase",
"of",
"loans",
"through",
"the",
"FDIC",
"assisted",
"transaction",
".",
"The",
"provisions",
"reflect",
"management",
"’",
"s",
"assessment",
"of",
"lending",
"activities",
",",
"decreased",
"non-performing",
"loans",
",",
"levels",
"of",
"current",
"delinquencies",
"and",
"current",
"economic",
"conditions",
".",
"Provisions",
"for",
"loan",
"losses",
"are",
"charged",
"to",
"earnings",
"to",
"maintain",
"the",
"total",
"allowance",
"for",
"loan",
"losses",
"at",
"a",
"level",
"believed",
"by",
"management",
"sufficient",
"to",
"cover",
"all",
"known",
"and",
"inherent",
"losses",
"in",
"the",
"loan",
"portfolio",
"which",
"are",
"both",
"probable",
"and",
"reasonably",
"estimable",
".",
"Management",
"’",
"s",
"analysis",
"includes",
"consideration",
"of",
"the",
"Company",
"’",
"s",
"historical",
"experience",
",",
"the",
"volume",
"and",
"type",
"of",
"lending",
"conducted",
"by",
"the",
"Company",
",",
"the",
"amount",
"of",
"the",
"Company",
"’",
"s",
"classified",
"and",
"criticized",
"assets",
",",
"the",
"status",
"of",
"past",
"due",
"principal",
"and",
"interest",
"payments",
",",
"general",
"economic",
"conditions",
",",
"particularly",
"as",
"they",
"relate",
"to",
"the",
"Company",
"’",
"s",
"primary",
"market",
"area",
",",
"and",
"other",
"factors",
"related",
"to",
"the",
"collectability",
"of",
"the",
"Company",
"’",
"s",
"loan",
"portfolio",
".",
"Noninterest",
"Income.The",
"following",
"table",
"summarizes",
"noninterest",
"income",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
".",
"The",
"$",
"319,000",
"decrease",
"in",
"noninterest",
"income",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"as"
] |
14 | 98291 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"and",
"2010",
".",
"The",
"$",
"319,000",
"decrease",
"in",
"noninterest",
"income",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"as",
"compared",
"to",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2010",
"was",
"primarily",
"due",
"to",
"a",
"$",
"294,000",
"and",
"$",
"26,000",
"decrease",
"in",
"gains",
"on",
"the",
"sale",
"of",
"loans",
"and",
"investments",
",",
"respectively",
"and",
"a",
"$",
"7,000",
"decrease",
"in",
"earnings",
"on",
"Bank-owned",
"life",
"insurance",
",",
"partially",
"offset",
"by",
"a",
"$",
"11,000",
"increase",
"in",
"service",
"fees",
"on",
"deposit",
"accounts",
".",
"The",
"following",
"table",
"summarizes",
"noninterest",
"expense",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
".",
"Total",
"noninterest",
"expense",
"increased",
"$",
"29,000",
",",
"or",
"1.4",
"%",
",",
"to",
"$",
"2.1",
"million",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"from",
"the",
"prior",
"year",
"period",
".",
"The",
"increase",
"in",
"noninterest",
"expense",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"as",
"compared",
"to",
"the",
"prior",
"year",
"period",
"was",
"primarily",
"the",
"result",
"of",
"a",
"$",
"230,000",
"increase",
"in",
"compensation",
"and",
"employee",
"benefits",
"related",
"to",
"the",
"acquisition",
"of",
"Earthstar",
"Bank",
"and",
"an",
"$",
"89,000",
"increase",
"in",
"occupancy",
"and",
"equipment",
"due",
"to",
"the",
"upgrade",
"and",
"conversion",
"of",
"the",
"systems",
",",
"partially",
"offset",
"by",
",",
"the",
"decrease",
"in",
"expense",
"related",
"to",
"our",
"investment",
"in",
"a",
"subsidiary",
"set",
"up",
"to",
"manage",
"and",
"dispose",
"of",
"foreclosed",
"property",
"for",
"the",
"prior",
"year",
"period",
"and",
"the",
"decrease",
"in",
"federal",
"deposit",
"insurance",
"premiums",
".",
"Income",
"Taxes.We",
"recorded",
"tax",
"expense",
"of",
"$",
"26,000",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"compared",
"to",
"a",
"tax",
"benefit",
"of",
"$",
"44,000",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2010",
".",
"The",
"recording",
"of",
"tax",
"expenses",
"resulted",
"from",
"the",
"increase",
"in",
"our",
"taxable",
"operating",
"profits",
".",
"Liquidity",
"is",
"the",
"ability",
"to",
"meet",
"current",
"and",
"future",
"financial",
"obligations",
"of",
"a",
"short-term",
"nature",
".",
"Our",
"primary",
"sources",
"of",
"funds",
"consist",
"of",
"deposit",
"inflows",
",",
"loan",
"repayments",
",",
"maturities",
"and",
"sales",
"of",
"securities",
"and",
"borrowings",
"from",
"the",
"FHLB",
"of",
"Pittsburgh",
".",
"While",
"maturities",
"and",
"scheduled",
"amortization",
"of",
"loans",
"and",
"securities",
"are",
"predictable",
"sources",
"of",
"funds",
",",
"deposit",
"flows",
"and",
"loan",
"prepayments",
"are",
"greatly",
"influenced",
"by",
"general",
"interest",
"rates",
",",
"economic",
"conditions",
"and",
"competition",
".",
"We",
"regularly",
"adjust",
"our",
"investments",
"in",
"liquid",
"assets",
"based",
"upon",
"our",
"assessment",
"of",
"(",
"1",
")",
"expected",
"loan",
"demand",
",",
"(",
"2",
")",
"expected",
"deposit",
"flows",
",",
"(",
"3",
")",
"yields",
"available",
"on",
"interest-earning",
"deposits",
"and",
"securities",
"and",
"(",
"4",
")",
"the",
"objectives",
"of",
"our",
"asset/liability",
"management",
"policy",
".",
"Our",
"most",
"liquid",
"assets",
"are",
"cash",
"and",
"cash",
"equivalents",
".",
"The",
"levels",
"of",
"these",
"assets",
"depend",
"on",
"our",
"operating",
",",
"financing",
",",
"lending",
"and",
"investing",
"activities",
"during",
"any",
"given",
"period",
".",
"At",
"March",
"31",
",",
"2011",
",",
"cash",
"and",
"cash",
"equivalents",
"totaled",
"$",
"8.0",
"million",
".",
"Securities",
"classified",
"as",
"available-for-sale",
","
] |
14 | 98721 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"At",
"March",
"31",
",",
"2011",
",",
"cash",
"and",
"cash",
"equivalents",
"totaled",
"$",
"8.0",
"million",
".",
"Securities",
"classified",
"as",
"available-for-sale",
",",
"which",
"provide",
"additional",
"sources",
"of",
"liquidity",
",",
"totaled",
"$",
"25.7",
"million",
"at",
"March",
"31",
",",
"2011",
".",
"In",
"addition",
",",
"at",
"March",
"31",
",",
"2011",
",",
"we",
"had",
"the",
"ability",
"to",
"borrow",
"a",
"total",
"of",
"approximately",
"$",
"89.2",
"million",
"from",
"the",
"FHLB",
"of",
"Pittsburgh",
".",
"On",
"March",
"31",
",",
"2011",
",",
"we",
"had",
"$",
"31.5",
"million",
"of",
"borrowings",
"outstanding",
".",
"Any",
"growth",
"of",
"our",
"loan",
"portfolio",
"may",
"require",
"us",
"to",
"borrow",
"additional",
"funds",
".",
"At",
"March",
"31",
",",
"2011",
",",
"we",
"had",
"$",
"2.7",
"million",
"in",
"mortgage",
"loan",
"commitments",
"outstanding",
"and",
"$",
"36,000",
"in",
"a",
"standby",
"letter",
"of",
"credit",
".",
"Time",
"deposits",
"due",
"within",
"one",
"year",
"of",
"March",
"31",
",",
"2011",
"totaled",
"$",
"74.6",
"million",
",",
"or",
"66.4",
"%",
"of",
"time",
"deposits",
".",
"If",
"these",
"maturing",
"deposits",
"do",
"not",
"remain",
"with",
"us",
",",
"we",
"will",
"be",
"required",
"to",
"seek",
"other",
"sources",
"of",
"funds",
",",
"including",
"other",
"time",
"deposits",
"and",
"borrowings",
".",
"Depending",
"onmarket",
"conditions",
",",
"we",
"may",
"be",
"required",
"to",
"pay",
"higher",
"rates",
"on",
"such",
"deposits",
"or",
"other",
"borrowings",
"than",
"we",
"currently",
"pay",
"on",
"the",
"time",
"deposits",
"due",
"on",
"or",
"before",
"March",
"31",
",",
"2012",
".",
"We",
"believe",
",",
"however",
",",
"based",
"on",
"past",
"experience",
"that",
"a",
"significant",
"portion",
"of",
"our",
"time",
"deposits",
"will",
"remain",
"with",
"us",
".",
"We",
"have",
"the",
"ability",
"to",
"attract",
"and",
"retain",
"deposits",
"by",
"adjusting",
"the",
"interest",
"rates",
"offered",
".",
"Our",
"primary",
"investing",
"activities",
"are",
"the",
"origination",
"of",
"loans",
"and",
"the",
"purchase",
"of",
"securities",
".",
"Our",
"primary",
"financing",
"activities",
"consist",
"of",
"activity",
"in",
"deposit",
"accounts",
"and",
"FHLB",
"advances",
".",
"Deposit",
"flows",
"are",
"affected",
"by",
"the",
"overall",
"level",
"of",
"interest",
"rates",
",",
"the",
"interest",
"rates",
"and",
"products",
"offered",
"by",
"us",
"and",
"our",
"local",
"competitors",
"and",
"other",
"factors",
".",
"We",
"generally",
"manage",
"the",
"pricing",
"of",
"our",
"deposits",
"to",
"be",
"competitive",
"and",
"to",
"increase",
"core",
"deposit",
"relationships",
".",
"Occasionally",
",",
"we",
"offer",
"promotional",
"rates",
"on",
"certain",
"deposit",
"products",
"to",
"attract",
"deposits",
".",
"The",
"Company",
"is",
"a",
"separate",
"entity",
"and",
"apart",
"from",
"the",
"Bank",
"and",
"must",
"provide",
"for",
"its",
"own",
"liquidity",
".",
"As",
"of",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"had",
"$",
"8.0",
"million",
"in",
"cash",
"and",
"cash",
"equivalents",
"compared",
"to",
"$",
"54.0",
"million",
"as",
"of",
"December",
"31",
",",
"2010",
".",
"Substantially",
"all",
"of",
"the",
"Company",
"’",
"s",
"cash",
"and",
"cash",
"equivalents",
"were",
"obtained",
"from",
"proceeds",
"it",
"retained",
"from",
"the",
"Bank",
"’",
"s",
"mutual-to-stock",
"conversion",
"completed",
"in",
"January",
"2007",
".",
"In",
"addition",
"to",
"its",
"operating",
"expenses",
",",
"Company",
"may",
"utilize",
"its",
"cash",
"position",
"for",
"the",
"payment",
"of",
"dividends",
"or",
"to",
"repurchase",
"common",
"stock",
",",
"subject",
"to",
"applicable",
"restrictions",
".",
"The",
"Company",
"can",
"receive",
"dividends",
"from",
"the",
"Bank",
".",
"Payment",
"of",
"such",
"dividends",
"to",
"the",
"Company",
"by",
"the",
"Bank",
"is",
"limited",
"under",
"federal",
"law",
".",
"The",
"amount",
"that",
"can",
"be"
] |
14 | 99171 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"of",
"such",
"dividends",
"to",
"the",
"Company",
"by",
"the",
"Bank",
"is",
"limited",
"under",
"federal",
"law",
".",
"The",
"amount",
"that",
"can",
"be",
"paid",
"in",
"any",
"calendar",
"year",
",",
"without",
"prior",
"regulatory",
"approval",
",",
"can",
"not",
"exceed",
"the",
"retained",
"net",
"earnings",
"(",
"as",
"defined",
")",
"for",
"the",
"year",
"plus",
"the",
"preceding",
"two",
"calendar",
"years",
".",
"The",
"Company",
"believes",
"that",
"such",
"restriction",
"will",
"not",
"have",
"an",
"impact",
"on",
"the",
"Company",
"’",
"s",
"ability",
"to",
"meet",
"its",
"ongoing",
"cash",
"obligations",
".",
"We",
"are",
"subject",
"to",
"various",
"regulatory",
"capital",
"requirements",
"administered",
"by",
"the",
"Office",
"of",
"Thrift",
"Supervision",
",",
"including",
"a",
"risk-based",
"capital",
"measure",
".",
"The",
"risk-based",
"capital",
"guidelines",
"include",
"both",
"a",
"definition",
"of",
"capital",
"and",
"a",
"framework",
"for",
"calculating",
"risk-weighted",
"assets",
"by",
"assigning",
"balance",
"sheet",
"assets",
"and",
"off-balance",
"sheet",
"items",
"to",
"broad",
"risk",
"categories",
".",
"At",
"March",
"31",
",",
"2011",
",",
"we",
"exceeded",
"all",
"of",
"our",
"regulatory",
"capital",
"requirements",
".",
"We",
"are",
"considered",
"“",
"well",
"capitalized",
"”",
"under",
"regulatory",
"guidelines",
".",
"Off-Balance",
"Sheet",
"Arrangements",
"In",
"the",
"normal",
"course",
"of",
"operations",
",",
"we",
"engage",
"in",
"a",
"variety",
"of",
"financial",
"transactions",
"that",
",",
"in",
"accordance",
"with",
"U.S.",
"generally",
"accepted",
"accounting",
"principles",
",",
"are",
"not",
"recorded",
"in",
"our",
"financial",
"statements",
".",
"These",
"transactions",
"involve",
",",
"to",
"varying",
"degrees",
",",
"elements",
"of",
"credit",
",",
"interest",
"rate",
"and",
"liquidity",
"risk",
".",
"Such",
"transactions",
"are",
"used",
"primarily",
"to",
"manage",
"customers",
"’",
"requests",
"for",
"funding",
"and",
"take",
"the",
"form",
"of",
"loan",
"commitments",
".",
"For",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"we",
"engaged",
"in",
"no",
"off-balance",
"sheet",
"transactions",
"reasonably",
"likely",
"to",
"have",
"a",
"material",
"effect",
"on",
"our",
"financial",
"condition",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
".",
"The",
"Company",
"’",
"s",
"management",
",",
"including",
"the",
"Company",
"’",
"s",
"principal",
"executive",
"officer",
"and",
"principal",
"financial",
"officer",
",",
"have",
"evaluated",
"the",
"effectiveness",
"of",
"the",
"Company",
"’",
"s",
"“",
"disclosure",
"controls",
"and",
"procedures",
",",
"”",
"as",
"such",
"term",
"is",
"defined",
"in",
"Rule",
"13a-15",
"(",
"e",
")",
"promulgated",
"under",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
",",
"(",
"the",
"“",
"Exchange",
"Act",
"”",
")",
".",
"Based",
"upon",
"their",
"evaluation",
",",
"the",
"principal",
"executive",
"officer",
"and",
"principal",
"financial",
"officer",
"concluded",
"that",
",",
"as",
"of",
"the",
"end",
"of",
"the",
"period",
"covered",
"by",
"this",
"report",
",",
"the",
"Company",
"’",
"s",
"disclosure",
"controls",
"and",
"procedures",
"were",
"effective",
"for",
"the",
"purpose",
"of",
"ensuring",
"that",
"the",
"information",
"required",
"to",
"be",
"disclosed",
"in",
"the",
"reports",
"that",
"the",
"Company",
"files",
"or",
"submits",
"under",
"the",
"Exchange",
"Act",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"“",
"SEC",
"”",
")",
"(",
"1",
")",
"is",
"recorded",
",",
"processed",
",",
"summarized",
"and",
"reported",
"within",
"the",
"time",
"periods",
"specified",
"in",
"the",
"SEC",
"’",
"s",
"rules",
"and",
"forms",
",",
"and",
"(",
"2",
")",
"is",
"accumulated",
"and",
"communicated",
"to",
"the",
"Company",
"’",
"s",
"management",
",",
"including",
"its",
"principal",
"executive",
"and",
"principal",
"financial",
"officers",
",",
"as",
"appropriate",
"to",
"allow",
"timely",
"decisions",
"regarding"
] |
14 | 99621 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2
] | [
"’",
"s",
"management",
",",
"including",
"its",
"principal",
"executive",
"and",
"principal",
"financial",
"officers",
",",
"as",
"appropriate",
"to",
"allow",
"timely",
"decisions",
"regarding",
"required",
"disclosure",
".",
"There",
"have",
"been",
"no",
"changes",
"in",
"the",
"Company",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
"identified",
"in",
"connection",
"with",
"the",
"evaluation",
"required",
"by",
"Rule",
"13a-15",
"(",
"e",
")",
"that",
"occurred",
"during",
"the",
"Company",
"’",
"s",
"last",
"fiscal",
"quarter",
"that",
"has",
"materially",
"affected",
",",
"or",
"is",
"reasonably",
"likely",
"to",
"materially",
"affect",
",",
"the",
"Company",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
".",
"From",
"time",
"to",
"time",
",",
"we",
"may",
"be",
"party",
"to",
"various",
"legal",
"proceedings",
"incident",
"to",
"our",
"business",
".",
"At",
"March",
"31",
",",
"2011",
",",
"we",
"were",
"not",
"a",
"party",
"to",
"any",
"pending",
"legal",
"proceedings",
"that",
"we",
"believe",
"would",
"have",
"a",
"material",
"adverse",
"effect",
"on",
"our",
"financial",
"condition",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
".",
"In",
"addition",
"to",
"the",
"other",
"information",
"set",
"forth",
"in",
"this",
"report",
",",
"you",
"should",
"carefully",
"consider",
"the",
"factors",
"discussed",
"in",
"Part",
"I",
",",
"“",
"Item",
"1A",
".",
"Risk",
"Factors",
"”",
"in",
"our",
"Annual",
"Report",
"on",
"Form",
"10-K",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"which",
"could",
"materially",
"affect",
"our",
"business",
",",
"financial",
"condition",
"or",
"future",
"results",
".",
"At",
"March",
"31",
",",
"2011",
"the",
"risk",
"factors",
"of",
"the",
"Company",
"have",
"not",
"changed",
"materially",
"from",
"those",
"reported",
"in",
"our",
"Annual",
"Report",
"on",
"Form",
"10-K",
".",
"However",
",",
"the",
"risks",
"described",
"in",
"our",
"Annual",
"Report",
"on",
"Form",
"10-K",
"are",
"not",
"the",
"only",
"risks",
"that",
"we",
"face",
".",
"Additional",
"risks",
"and",
"uncertainties",
"not",
"currently",
"known",
"to",
"us",
"or",
"that",
"we",
"currently",
"deem",
"to",
"be",
"immaterial",
"also",
"may",
"materially",
"adversely",
"affect",
"our",
"business",
",",
"financial",
"condition",
"and/or",
"operating",
"results",
".",
"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",
"thereunto",
"duly",
"authorized",
".",
"(",
"principal",
"executive",
"officer",
")",
"(",
"principal",
"financial",
"and",
"accounting",
"officer",
")",
"I",
",",
"Anthony",
"J.",
"Szuszczewicz",
",",
"certify",
"that",
":",
"(",
"a",
")",
"Designed",
"such",
"disclosure",
"controls",
"and",
"procedures",
",",
"or",
"caused",
"such",
"disclosure",
"controls",
"and",
"procedures",
"to",
"be",
"designed",
"under",
"our",
"supervision",
",",
"to",
"ensure",
"that",
"material",
"information",
"relating",
"to",
"the",
"registrant",
",",
"including",
"its",
"consolidated",
"subsidiaries",
",",
"is",
"made",
"known",
"to",
"us",
"by",
"others",
"within",
"those",
"entities",
",",
"particularly",
"during",
"the",
"period",
"in",
"which",
"this",
"report",
"is",
"being",
"prepared",
";",
"(",
"b",
")",
"Designed",
"such",
"control",
"over",
"financial",
"reporting",
",",
"or",
"caused",
"such",
"internal",
"control",
"over",
"financial",
"reporting",
"to",
"be",
"designed",
"under",
"our",
"supervision",
",",
"to",
"provide",
"reasonable",
"assurance",
"regarding",
"the",
"reliability",
"of",
"financial",
"reporting",
"and",
"the",
"preparation",
"of",
"financial",
"statements",
"for",
"external",
"purposes",
"in",
"accordance",
"with",
"generally",
"accepted",
"accounting",
"principles",
";",
"(",
"b",
")",
"Any",
"fraud",
",",
"whether",
"or",
"not",
"material",
",",
"that",
"involves",
"management",
"or",
"other",
"employees",
"who",
"have",
"a",
"significant",
"role",
"in",
"the",
"registrant",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
".",
"I",
",",
"Paul",
"D."
] |
14 | 100081 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"who",
"have",
"a",
"significant",
"role",
"in",
"the",
"registrant",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
".",
"I",
",",
"Paul",
"D.",
"Rutkowski",
",",
"certify",
"that",
":",
"(",
"a",
")",
"Designed",
"such",
"disclosure",
"controls",
"and",
"procedures",
",",
"or",
"caused",
"such",
"disclosure",
"controls",
"and",
"procedures",
"to",
"be",
"designed",
"under",
"our",
"supervision",
",",
"to",
"ensure",
"that",
"material",
"information",
"relating",
"to",
"the",
"registrant",
",",
"including",
"its",
"consolidated",
"subsidiaries",
",",
"is",
"made",
"known",
"to",
"us",
"by",
"others",
"within",
"those",
"entities",
",",
"particularly",
"during",
"the",
"period",
"in",
"which",
"this",
"report",
"is",
"being",
"prepared",
";",
"(",
"b",
")",
"Designed",
"such",
"control",
"over",
"financial",
"reporting",
",",
"or",
"caused",
"such",
"internal",
"control",
"over",
"financial",
"reporting",
"to",
"be",
"designed",
"under",
"our",
"supervision",
",",
"to",
"provide",
"reasonable",
"assurance",
"regarding",
"the",
"reliability",
"of",
"financial",
"reporting",
"and",
"the",
"preparation",
"of",
"financial",
"statements",
"for",
"external",
"purposes",
"in",
"accordance",
"with",
"generally",
"accepted",
"accounting",
"principles",
";",
"(",
"b",
")",
"Any",
"fraud",
",",
"whether",
"or",
"not",
"material",
",",
"that",
"involves",
"management",
"or",
"other",
"employees",
"who",
"have",
"a",
"significant",
"role",
"in",
"the",
"registrant",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
".",
"In",
"connection",
"with",
"the",
"Quarterly",
"Report",
"of",
"Polonia",
"Bancorp",
"(",
"the",
"“",
"Company",
"”",
")",
"on",
"Form",
"10-Q",
"for",
"the",
"quarter",
"ended",
"March",
"31",
",",
"2011",
"as",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"“",
"Report",
"”",
")",
",",
"the",
"undersigned",
"hereby",
"certify",
",",
"pursuant",
"to",
"18",
"U.S.C.",
"§",
"1350",
",",
"as",
"added",
"by",
"§",
"906",
"of",
"the",
"Sarbanes-Oxley",
"Act",
"of",
"2002",
",",
"that",
":"
] |
15 | 100321 | [
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"INVESTMENT",
"OBJECTIVE",
"James",
"Long-Short",
"Fund",
"seeks",
"to",
"provide",
"long-term",
"capital",
"appreciation",
".",
"FEES",
"AND",
"EXPENSES",
"OF",
"THE",
"FUND",
"This",
"table",
"describes",
"the",
"fees",
"and",
"expenses",
"that",
"you",
"may",
"pay",
"if",
"you",
"buy",
"and",
"hold",
"shares",
"of",
"the",
"Fund",
".",
"ANNUAL",
"FUND",
"OPERATING",
"EXPENSES",
"(",
"expenses",
"that",
"you",
"pay",
"each",
"year",
"as",
"a",
"percentage",
"of",
"the",
"value",
"of",
"your",
"investment",
")",
"EXAMPLE",
"The",
"Example",
"is",
"intended",
"to",
"help",
"you",
"compare",
"the",
"cost",
"of",
"investing",
"in",
"the",
"Fund",
"with",
"the",
"cost",
"of",
"investing",
"in",
"other",
"mutual",
"funds",
".",
"The",
"Example",
"assumes",
"that",
"you",
"invest",
"$",
"10,000",
"in",
"the",
"Fund",
"for",
"the",
"time",
"period",
"indicated",
"and",
"then",
"redeem",
"all",
"of",
"your",
"shares",
"at",
"the",
"end",
"of",
"those",
"periods",
".",
"The",
"Example",
"also",
"assumes",
"that",
"your",
"investment",
"has",
"a",
"5",
"%",
"return",
"each",
"year",
"and",
"that",
"the",
"Fund",
"s",
"operating",
"expenses",
"remain",
"the",
"same",
".",
"Although",
"your",
"actual",
"costs",
"may",
"be",
"higher",
"or",
"lower",
",",
"based",
"on",
"these",
"assumptions",
"your",
"costs",
"would",
"be",
":",
"Portfolio",
"Turnover",
":",
"The",
"Fund",
"pays",
"transaction",
"costs",
",",
"such",
"as",
"commissions",
",",
"when",
"it",
"buys",
"and",
"sells",
"securities",
"(",
"or",
"turns",
"over",
"its",
"portfolio",
")",
".",
"A",
"higher",
"portfolio",
"turnover",
"may",
"indicate",
"higher",
"transaction",
"costs",
"and",
"may",
"result",
"in",
"higher",
"taxes",
"when",
"Fund",
"shares",
"are",
"held",
"in",
"a",
"taxable",
"account",
".",
"These",
"costs",
",",
"which",
"are",
"not",
"reflected",
"in",
"annual",
"fund",
"operating",
"expenses",
"or",
"in",
"the",
"Example",
",",
"affect",
"the",
"Fund",
"s",
"performance",
".",
"PRINCIPAL",
"INVESTMENT",
"STRATEGIES",
"The",
"Fund",
"invests",
"primarily",
"in",
"foreign",
"and",
"domestic",
"equity",
"securities",
"(",
"long",
"positions",
")",
"that",
"the",
"Adviser",
"believes",
"are",
"undervalued",
"and",
"more",
"likely",
"to",
"appreciate",
",",
"and",
"sells",
"short",
"equity",
"securities",
"(",
"short",
"positions",
")",
"that",
"the",
"Adviser",
"believes",
"are",
"overvalued",
"and",
"more",
"likely",
"to",
"depreciate",
".",
"The",
"Fund",
"also",
"may",
"take",
"long",
"positions",
"in",
"domestic",
"and",
"foreign",
"fixed",
"income",
"securities",
"that",
"the",
"Adviser",
"believes",
"are",
"more",
"likely",
"to",
"appreciate",
"in",
"the",
"interest",
"rate",
"and",
"spread",
"environment",
"anticipated",
"by",
"the",
"Adviser",
",",
"and",
"short",
"positions",
"in",
"fixed",
"income",
"securities",
"that",
"the",
"Adviser",
"believes",
"are",
"more",
"likely",
"to",
"depreciate",
"in",
"the",
"interest",
"rate",
"and",
"spread",
"environment",
"anticipated",
"by",
"the",
"Adviser",
".",
"The",
"Fund",
"seeks",
"to",
"achieve",
"positive",
"returns",
"on",
"both",
"the",
"long",
"positions",
"and",
"short",
"positions",
"that",
"it",
"takes",
"in",
"various",
"securities",
".",
"At",
"any",
"one",
"time",
",",
"the",
"Fund",
"can",
"have",
"up",
"to",
"a",
"100",
"%",
"exposure",
"in",
"long",
"positions",
"or",
"short",
"positions",
".",
"Equity",
"securities",
"that",
"the",
"Fund",
"will",
"principally",
"invest",
"in",
"are",
"common",
"stocks",
",",
"preferred",
"stocks",
"and",
"real",
"estate",
"investment",
"trusts",
"(",
"REITs",
")",
",",
"as",
"well",
"as",
"exchange",
"traded",
"funds",
"(",
"ETFs",
")",
"that",
"invest",
"primarily",
"in",
"equity",
"securities",
"and",
"exchange",
"traded",
"notes",
"(",
"ETNs",
")",
"whose",
"returns",
"are",
"linked",
"to",
"an",
"equity",
"index",
".",
"Fixed",
"income",
"securities",
"that",
"the",
"Fund",
"will",
"principally",
"invest",
"in",
"are",
"corporate",
"bonds",
",",
"notes",
",",
"high",
"yield",
"bonds",
",",
"municipal",
"securities",
","
] |
15 | 100771 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"that",
"the",
"Fund",
"will",
"principally",
"invest",
"in",
"are",
"corporate",
"bonds",
",",
"notes",
",",
"high",
"yield",
"bonds",
",",
"municipal",
"securities",
",",
"U.S.",
"government",
"securities",
"and",
"sovereign",
"and",
"supranational",
"securities",
",",
"as",
"well",
"as",
"ETFs",
"that",
"invest",
"primarily",
"in",
"such",
"securities",
"and",
"ETNs",
"whose",
"returns",
"are",
"linked",
"to",
"fixed",
"income",
"indexes",
",",
"currencies",
"or",
"interest",
"rates",
".",
"The",
"Fund",
"may",
"take",
"long",
"and",
"short",
"positions",
"in",
"fixed",
"income",
"securities",
"of",
"any",
"maturity",
"or",
"credit",
"quality",
".",
"A",
"significant",
"portion",
"of",
"the",
"Fund",
"s",
"long",
"and",
"short",
"equity",
"positions",
"may",
"be",
"invested",
"in",
"smaller",
"capitalization",
"securities",
".",
"The",
"Fund",
"is",
"non-diversified",
",",
"which",
"means",
"that",
"it",
"can",
"invest",
"a",
"relatively",
"high",
"percentage",
"of",
"its",
"assets",
"in",
"a",
"limited",
"number",
"of",
"securities",
".",
"The",
"Adviser",
"may",
"sell",
"a",
"long",
"position",
"or",
"close",
"out",
"a",
"short",
"position",
"because",
"the",
"Adviser",
"believes",
"that",
"the",
"position",
"is",
"not",
"as",
"likely",
"to",
"achieve",
"positive",
"returns",
",",
"or",
"that",
"another",
"position",
"is",
"more",
"likely",
"to",
"do",
"so",
".",
"The",
"Adviser",
"also",
"may",
"sell",
"a",
"long",
"position",
"or",
"close",
"out",
"a",
"short",
"position",
"to",
"reallocate",
"the",
"Fund",
"s",
"portfolio",
"between",
"long",
"and",
"short",
"positions",
",",
"or",
"between",
"equity",
"and",
"fixed",
"income",
"securities",
";",
"to",
"adjust",
"the",
"portfolio",
"s",
"sector",
"or",
"industry",
"exposure",
";",
"to",
"adjust",
"the",
"duration",
"of",
"the",
"fixed",
"income",
"portion",
"of",
"the",
"portfolio",
";",
"or",
"to",
"trim",
"a",
"position",
"that",
"has",
"become",
"too",
"large",
"a",
"percentage",
"of",
"the",
"portfolio",
".",
"PRINCIPAL",
"RISKS",
"All",
"investments",
"carry",
"a",
"certain",
"amount",
"of",
"risk",
"and",
"the",
"Fund",
"can",
"not",
"guarantee",
"that",
"it",
"will",
"achieve",
"its",
"investment",
"objective",
".",
"An",
"investment",
"in",
"the",
"Fund",
"is",
"not",
"a",
"deposit",
"or",
"obligation",
"of",
"any",
"bank",
",",
"is",
"not",
"endorsed",
"or",
"guaranteed",
"by",
"any",
"bank",
",",
"and",
"is",
"not",
"insured",
"by",
"the",
"Federal",
"Deposit",
"Insurance",
"Corporation",
"(",
"FDIC",
")",
"or",
"any",
"other",
"government",
"agency",
".",
"You",
"may",
"lose",
"money",
"by",
"investing",
"in",
"the",
"Fund",
".",
"Below",
"are",
"the",
"main",
"risks",
"of",
"investing",
"in",
"the",
"Fund",
".",
"Equity",
"Market",
"Risk",
":",
"Overall",
"stock",
"market",
"risks",
"may",
"affect",
"the",
"value",
"of",
"the",
"Fund",
".",
"Factors",
"such",
"as",
"domestic",
"economic",
"growth",
"and",
"market",
"conditions",
",",
"interest",
"rate",
"levels",
",",
"and",
"political",
"events",
"affect",
"the",
"securities",
"markets",
".",
"When",
"the",
"value",
"of",
"the",
"Fund",
"s",
"investments",
"goes",
"down",
",",
"your",
"investment",
"in",
"the",
"Fund",
"decreases",
"in",
"value",
"and",
"you",
"could",
"lose",
"money",
".",
"Fixed",
"Income",
"Risk",
":",
"Fixed",
"income",
"securities",
"are",
"subject",
"to",
"inherent",
"market",
"risks",
"and",
"fluctuations",
"in",
"value",
"due",
"to",
"changes",
"in",
"earnings",
",",
"economic",
"conditions",
",",
"quality",
"ratings",
"and",
"other",
"factors",
"beyond",
"the",
"control",
"of",
"the",
"Adviser",
".",
"These",
"securities",
"are",
"also",
"subject",
"to",
"price",
"fluctuations",
"based",
"on",
"changes",
"in",
"interest",
"rates",
".",
"If",
"rates",
"increase",
",",
"the",
"value",
"of",
"the",
"Fund",
"s",
"fixed",
"income",
"securities",
"generally",
"will",
"decline",
",",
"and",
"those",
"securities",
"with",
"longer",
"terms",
"generally",
"will",
"decline",
"more",
".",
"securities",
"held",
"by",
"the",
"Fund",
".",
"Such",
"defaults",
"could",
"result",
"in",
"losses",
"to",
"the",
"Fund",
".",
"Securities",
"with",
"lower",
"credit",
"quality",
"have",
"a",
"greater",
"risk",
"of",
"default",
".",
"In",
"addition",
",",
"the",
"credit",
"quality",
"of",
"securities"
] |
15 | 101251 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Securities",
"with",
"lower",
"credit",
"quality",
"have",
"a",
"greater",
"risk",
"of",
"default",
".",
"In",
"addition",
",",
"the",
"credit",
"quality",
"of",
"securities",
"held",
"by",
"the",
"Fund",
"may",
"be",
"lowered",
"if",
"an",
"issuer",
"s",
"financial",
"condition",
"changes",
".",
"Lower",
"credit",
"quality",
"may",
"lead",
"to",
"greater",
"volatility",
"in",
"the",
"price",
"of",
"a",
"security",
"and",
"in",
"shares",
"of",
"the",
"Fund",
".",
"Lower",
"credit",
"quality",
"also",
"may",
"affect",
"liquidity",
"and",
"make",
"it",
"difficult",
"for",
"the",
"Fund",
"to",
"sell",
"the",
"security",
".",
"Management",
"Risk",
":",
"The",
"Adviser",
"s",
"judgments",
"about",
"the",
"attractiveness",
",",
"value",
"and",
"potential",
"appreciation",
"of",
"a",
"particular",
"asset",
"class",
"or",
"individual",
"security",
"in",
"which",
"the",
"Fund",
"invests",
"may",
"prove",
"to",
"be",
"incorrect",
".",
"If",
"the",
"Adviser",
"does",
"not",
"correctly",
"identify",
"undervalued",
"and",
"overvalued",
"equity",
"securities",
",",
"or",
"anticipate",
"future",
"interest",
"rate",
"and",
"spread",
"environments",
",",
"the",
"Fund",
"may",
"experience",
"losses",
"regardless",
"of",
"the",
"overall",
"performance",
"of",
"the",
"markets",
".",
"Short",
"Selling",
"Risk",
":",
"The",
"Fund",
"will",
"incur",
"a",
"loss",
"as",
"a",
"result",
"of",
"a",
"short",
"sale",
"if",
"the",
"price",
"of",
"the",
"security",
"sold",
"short",
"increases",
"in",
"value",
"between",
"the",
"date",
"of",
"the",
"short",
"sale",
"and",
"the",
"date",
"on",
"which",
"the",
"Fund",
"purchases",
"the",
"security",
"to",
"replace",
"the",
"borrowed",
"security",
".",
"In",
"addition",
",",
"a",
"lender",
"may",
"request",
"that",
"securities",
"sold",
"short",
"be",
"returned",
"to",
"the",
"lender",
"on",
"short",
"notice",
",",
"in",
"which",
"case",
"the",
"Fund",
"may",
"have",
"to",
"buy",
"the",
"securities",
"sold",
"short",
"at",
"an",
"unfavorable",
"price",
".",
"If",
"this",
"occurs",
",",
"any",
"anticipated",
"gain",
"to",
"the",
"Fund",
"may",
"be",
"reduced",
"or",
"eliminated",
"or",
"the",
"short",
"sale",
"may",
"result",
"in",
"a",
"loss",
".",
"The",
"Fund",
"s",
"losses",
"are",
"potentially",
"unlimited",
"in",
"a",
"short",
"sale",
"transaction",
".",
"Short",
"sales",
"are",
"speculative",
"transactions",
"and",
"involve",
"special",
"risks",
",",
"including",
"greater",
"reliance",
"on",
"the",
"Adviser",
"s",
"ability",
"to",
"accurately",
"anticipate",
"the",
"future",
"value",
"of",
"a",
"security",
".",
"Smaller",
"Cap",
"Company",
"Risk",
":",
"Smaller",
"capitalization",
"companies",
"may",
"experience",
"higher",
"failure",
"rates",
"than",
"do",
"larger",
"capitalization",
"companies",
".",
"In",
"addition",
",",
"smaller",
"companies",
"may",
"be",
"more",
"vulnerable",
"to",
"economic",
",",
"market",
"and",
"industry",
"changes",
".",
"As",
"a",
"result",
",",
"share",
"price",
"changes",
"may",
"be",
"more",
"sudden",
"or",
"erratic",
"than",
"the",
"prices",
"of",
"other",
"equity",
"securities",
",",
"especially",
"over",
"the",
"short",
"term",
".",
"Such",
"companies",
"may",
"have",
"limited",
"product",
"lines",
",",
"markets",
"or",
"financial",
"resources",
"and",
"may",
"lack",
"management",
"depth",
".",
"The",
"trading",
"volume",
"of",
"securities",
"of",
"smaller",
"capitalization",
"companies",
"is",
"normally",
"less",
"than",
"that",
"of",
"larger",
"capitalization",
"companies",
",",
"and",
"therefore",
"may",
"disproportionately",
"affect",
"their",
"market",
"price",
",",
"tending",
"to",
"make",
"them",
"fall",
"more",
"in",
"response",
"to",
"selling",
"pressure",
"than",
"is",
"the",
"case",
"with",
"larger",
"capitalization",
"companies",
".",
"These",
"risks",
"are",
"enhanced",
"for",
"micro",
"cap",
"securities",
".",
"Many",
"micro",
"cap",
"companies",
"tend",
"to",
"be",
"new",
"and",
"have",
"no",
"proven",
"track",
"record",
".",
"Some",
"of",
"these",
"companies",
"have",
"no",
"assets",
"or",
"operations",
",",
"while",
"others",
"have",
"products",
"and",
"services",
"that",
"are",
"still",
"in",
"development",
"or",
"have",
"yet",
"to",
"be",
"tested",
"in",
"the",
"market",
".",
"The",
"prices",
"of",
"micro",
"cap",
"securities",
"generally",
"are",
"even",
"more",
"volatile",
"and",
"their",
"markets",
"less",
"liquid",
"than",
"other",
"small",
"or",
"mid",
"cap",
"securities",
".",
"Because",
"micro"
] |
15 | 101741 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"generally",
"are",
"even",
"more",
"volatile",
"and",
"their",
"markets",
"less",
"liquid",
"than",
"other",
"small",
"or",
"mid",
"cap",
"securities",
".",
"Because",
"micro",
"cap",
"stocks",
"trade",
"in",
"low",
"volumes",
",",
"any",
"size",
"of",
"trade",
"can",
"have",
"a",
"large",
"percentage",
"impact",
"on",
"the",
"price",
"of",
"the",
"stock",
".",
"REIT",
"Risk",
":",
"To",
"the",
"extent",
"that",
"the",
"Fund",
"invests",
"in",
"companies",
"that",
"invest",
"in",
"real",
"estate",
",",
"such",
"as",
"REITs",
",",
"the",
"Fund",
"may",
"be",
"subject",
"to",
"risk",
"associated",
"with",
"the",
"real",
"estate",
"market",
"as",
"a",
"whole",
",",
"such",
"as",
"taxation",
",",
"regulations",
",",
"and",
"economic",
"and",
"political",
"factors",
"that",
"negatively",
"impact",
"the",
"real",
"estate",
"market",
",",
"and",
"with",
"direct",
"ownership",
"of",
"real",
"estate",
",",
"such",
"as",
"decreases",
"in",
"real",
"estate",
"values",
",",
"overbuilding",
",",
"environmental",
"liabilities",
"and",
"increases",
"in",
"operating",
"costs",
",",
"interest",
"rates",
"and/or",
"property",
"taxes",
".",
"Exchange",
"Traded",
"Fund",
"Risk",
":",
"An",
"ETF",
"may",
"trade",
"at",
"a",
"discount",
"to",
"its",
"net",
"asset",
"value",
".",
"the",
"Fund",
"invests",
"in",
"addition",
"to",
"the",
"Fund",
"s",
"direct",
"fees",
"and",
"expenses",
".",
"The",
"Fund",
"will",
"also",
"incur",
"brokerage",
"costs",
"when",
"it",
"purchases",
"shares",
"of",
"ETFs",
".",
"In",
"addition",
",",
"the",
"Fund",
"will",
"be",
"affected",
"by",
"losses",
"of",
"the",
"underlying",
"ETF",
"and",
"the",
"level",
"of",
"risk",
"arising",
"from",
"the",
"investment",
"practices",
"of",
"the",
"underlying",
"ETF",
".",
"Inverse",
"and",
"leveraged",
"ETFs",
"use",
"investment",
"techniques",
"and",
"financial",
"instruments",
"that",
"may",
"be",
"considered",
"aggressive",
",",
"including",
"the",
"use",
"of",
"derivative",
"transactions",
"and",
"short",
"selling",
"techniques",
".",
"To",
"the",
"extent",
"that",
"the",
"Fund",
"invests",
"in",
"ETFs",
"that",
"invest",
"in",
"commodities",
",",
"the",
"demand",
"and",
"supply",
"of",
"these",
"commodities",
"may",
"fluctuate",
"widely",
".",
"Commodity",
"ETFs",
"may",
"use",
"derivatives",
",",
"which",
"exposes",
"them",
"to",
"further",
"risks",
",",
"including",
"counterparty",
"risk",
"(",
"i.e.",
",",
"the",
"risk",
"that",
"the",
"institution",
"on",
"the",
"other",
"side",
"of",
"the",
"trade",
"will",
"default",
")",
".",
"Exchange",
"Traded",
"Note",
"Risk",
":",
"ETNs",
"are",
"synthetic",
"securities",
",",
"typically",
"unsecured",
",",
"with",
"returns",
"linked",
"to",
"the",
"performance",
"of",
"a",
"market",
"index",
".",
"An",
"ETN",
"does",
"not",
"own",
"the",
"underlying",
"index",
"it",
"is",
"tracking",
",",
"and",
"thus",
"the",
"Fund",
"will",
"have",
"no",
"claim",
"on",
"the",
"index",
"and",
"will",
"be",
"totally",
"reliant",
"on",
"the",
"counterparty",
"for",
"payment",
".",
"ETNs",
"are",
"subject",
"to",
"credit",
"risk",
"of",
"the",
"counterparty",
",",
"and",
"the",
"value",
"of",
"an",
"ETN",
"will",
"vary",
"and",
"will",
"be",
"influenced",
"by",
"time",
"to",
"maturity",
",",
"level",
"of",
"supply",
"and",
"demand",
"for",
"the",
"ETN",
",",
"volatility",
"and",
"lack",
"of",
"liquidity",
"in",
"underlying",
"markets",
"to",
"which",
"its",
"payments",
"are",
"linked",
",",
"changes",
"in",
"the",
"applicable",
"interest",
"rates",
",",
"changes",
"in",
"the",
"issuer",
"s",
"credit",
"rating",
",",
"and",
"economic",
",",
"legal",
",",
"political",
",",
"or",
"geographic",
"events",
".",
"The",
"Fund",
"will",
"bear",
"its",
"proportionate",
"share",
"of",
"any",
"fees",
"and",
"expenses",
"borne",
"by",
"the",
"ETN",
".",
"Sector",
"Risk",
":",
"Equity",
"securities",
"within",
"the",
"same",
"group",
"of",
"industries",
"may",
"decline",
"in",
"price",
"due",
"to",
"sector-specific",
"market",
"or",
"economic",
"developments",
".",
"If",
"the",
"Adviser",
"invests",
"a",
"significant",
"portion",
"of",
"the"
] |
15 | 102201 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"decline",
"in",
"price",
"due",
"to",
"sector-specific",
"market",
"or",
"economic",
"developments",
".",
"If",
"the",
"Adviser",
"invests",
"a",
"significant",
"portion",
"of",
"the",
"Fund",
"s",
"assets",
"in",
"a",
"particular",
"sector",
",",
"the",
"Fund",
"is",
"subject",
"to",
"the",
"risk",
"that",
"companies",
"in",
"the",
"same",
"sector",
"are",
"likely",
"to",
"react",
"similarly",
"to",
"legislative",
"or",
"regulatory",
"changes",
",",
"adverse",
"market",
"conditions",
"and/or",
"increased",
"competition",
"affecting",
"that",
"market",
"segment",
".",
"This",
"may",
"cause",
"the",
"Fund",
"s",
"net",
"asset",
"value",
"to",
"fluctuate",
"more",
"than",
"that",
"of",
"a",
"fund",
"that",
"does",
"not",
"concentrate",
"in",
"a",
"particular",
"sector",
".",
"High",
"Yield",
"Securities",
"Risk",
":",
"The",
"Fund",
"may",
"be",
"subject",
"to",
"greater",
"levels",
"of",
"price",
"volatility",
"as",
"a",
"result",
"of",
"investing",
"in",
"high",
"yield",
"securities",
"and",
"unrated",
"securities",
"of",
"similar",
"credit",
"quality",
"(",
"commonly",
"known",
"as",
"junk",
"bonds",
")",
"than",
"funds",
"that",
"do",
"not",
"invest",
"in",
"such",
"securities",
".",
"Such",
"bonds",
"are",
"considered",
"to",
"be",
"predominately",
"speculative",
"because",
"of",
"the",
"issuer",
"s",
"lower",
"ability",
"to",
"make",
"principal",
"and",
"interest",
"payments",
".",
"An",
"economic",
"downturn",
",",
"a",
"period",
"of",
"rising",
"interest",
"rates",
"or",
"increased",
"price",
"volatility",
"could",
"adversely",
"affect",
"the",
"market",
"for",
"these",
"securities",
",",
"and",
"reduce",
"the",
"number",
"of",
"buyers",
"should",
"the",
"Fund",
"need",
"to",
"sell",
"these",
"securities",
"(",
"liquidity",
"risk",
")",
".",
"Should",
"an",
"issuer",
"declare",
"bankruptcy",
",",
"there",
"may",
"be",
"potential",
"for",
"partial",
"recovery",
"of",
"the",
"value",
"of",
"the",
"bonds",
",",
"but",
"the",
"Fund",
"could",
"also",
"lose",
"its",
"entire",
"investment",
".",
"Municipal",
"Securities",
"Risk",
":",
"Municipal",
"securities",
"are",
"subject",
"to",
"the",
"risk",
"that",
"legislative",
"changes",
"and",
"local",
"and",
"business",
"developments",
"may",
"adversely",
"affect",
"the",
"yield",
"or",
"value",
"of",
"the",
"Fund",
"s",
"investments",
"in",
"such",
"securities",
".",
"Changes",
"or",
"proposed",
"changes",
"in",
"federal",
"tax",
"laws",
"may",
"also",
"cause",
"the",
"prices",
"of",
"municipal",
"securities",
"to",
"fall",
"and",
"adversely",
"affect",
"the",
"Fund",
"s",
"investment",
".",
"Foreign",
"Investment",
"Risk",
":",
"Foreign",
"investing",
"involves",
"risks",
"not",
"typically",
"associated",
"with",
"U.S.",
".",
"These",
"risks",
"include",
",",
"among",
"others",
",",
"adverse",
"fluctuations",
"in",
"foreign",
"currency",
"values",
"as",
"well",
"as",
"adverse",
"political",
",",
"social",
"and",
"economic",
"developments",
"affecting",
"a",
"foreign",
"country",
".",
"In",
"addition",
",",
"foreign",
"investing",
"involves",
"less",
"publicly",
"available",
"information",
",",
"and",
"more",
"volatile",
"or",
"less",
"liquid",
"securities",
"markets",
".",
"Foreign",
"accounting",
"may",
"be",
"less",
"transparent",
"than",
"U.S.",
"accounting",
"practices",
"and",
"foreign",
"regulation",
"may",
"be",
"inadequate",
"or",
"irregular",
".",
"Owning",
"foreign",
"securities",
"could",
"cause",
"the",
"Fund",
"s",
"performance",
"to",
"fluctuate",
"more",
"than",
"if",
"it",
"held",
"only",
"U.S.",
"Sovereign",
"and",
"Supranational",
"Debt",
"Risk",
":",
"The",
"Fund",
"may",
"invest",
"in",
"sovereign",
"and",
"supranational",
"debt",
"obligations",
".",
"Investment",
"in",
"sovereign",
"and",
"supranational",
"debt",
"obligations",
"involves",
"special",
"risks",
"not",
"present",
"in",
"foreign",
"corporate",
"debt",
"obligations",
".",
"The",
"issuer",
"of",
"the",
"debt",
"or",
"the",
"governmental",
"authorities",
"that",
"control",
"the",
"repayment",
"of",
"the",
"debt",
"may",
"be",
"unable",
"or",
"unwilling",
"to",
"repay",
"principal",
"or",
"interest",
"when",
"due",
",",
"and",
"the",
"Fund",
"may",
"have",
"limited",
"recourse",
"in",
"the",
"event",
"of",
"a",
"default",
".",
"During",
"periods",
"of",
"economic",
"uncertainty",
",",
"the",
"market",
"prices",
"of",
"sovereign",
"and",
"supranational",
"debt",
",",
"and",
"the",
"Fund",
"s",
"net"
] |
15 | 102671 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"During",
"periods",
"of",
"economic",
"uncertainty",
",",
"the",
"market",
"prices",
"of",
"sovereign",
"and",
"supranational",
"debt",
",",
"and",
"the",
"Fund",
"s",
"net",
"asset",
"value",
",",
"may",
"be",
"more",
"volatile",
"than",
"prices",
"of",
"U.S.",
".",
"Non-Diversification",
"Risk",
":",
"As",
"a",
"non-diversified",
"fund",
",",
"the",
"Fund",
"may",
"invest",
"more",
"of",
"its",
"total",
"assets",
"in",
"the",
"securities",
"of",
"issuers",
"that",
"each",
"represent",
"greater",
"than",
"5",
"%",
"of",
"the",
"Fund",
"s",
"total",
"assets",
".",
"Because",
"a",
"relatively",
"high",
"percentage",
"of",
"the",
"assets",
"of",
"the",
"Fund",
"may",
"be",
"invested",
"in",
"the",
"securities",
"of",
"a",
"limited",
"number",
"of",
"issuers",
",",
"the",
"value",
"of",
"shares",
"of",
"the",
"Fund",
"may",
"be",
"more",
"sensitive",
"to",
"any",
"single",
"economic",
",",
"business",
",",
"political",
"or",
"regulatory",
"occurrence",
"than",
"the",
"value",
"of",
"shares",
"of",
"a",
"diversified",
"investment",
"company",
".",
"This",
"fluctuation",
",",
"if",
"significant",
",",
"may",
"affect",
"the",
"performance",
"of",
"the",
"Fund",
".",
"Portfolio",
"Turnover",
"Risk",
":",
"The",
"Fund",
"will",
"likely",
"have",
"a",
"high",
"portfolio",
"turnover",
"rate",
".",
"A",
"high",
"portfolio",
"turnover",
"rate",
"can",
"result",
"in",
"increased",
"brokerage",
"commission",
"costs",
"and",
"may",
"expose",
"taxable",
"shareholders",
"to",
"potentially",
"larger",
"current",
"tax",
"liability",
".",
"Industry",
"practice",
"is",
"to",
"calculate",
"the",
"turnover",
"ratio",
"only",
"on",
"the",
"Fund",
"s",
"long",
"portfolio",
".",
"If",
"short",
"positions",
"were",
"also",
"included",
"in",
"this",
"calculation",
",",
"the",
"Fund",
"s",
"turnover",
"ratio",
"would",
"likely",
"be",
"higher",
".",
"PERFORMANCE",
"Performance",
"information",
"is",
"not",
"included",
"because",
"the",
"Fund",
"had",
"not",
"yet",
"commenced",
"operations",
"as",
"of",
"December",
"31",
",",
"2010",
".",
"When",
"this",
"information",
"is",
"provided",
",",
"it",
"will",
"illustrate",
"the",
"variability",
"of",
"the",
"Fund",
"s",
"returns",
"and",
"give",
"some",
"indication",
"of",
"the",
"risks",
"of",
"investing",
"in",
"the",
"Fund",
"by",
"showing",
"changes",
"in",
"the",
"Fund",
"s",
"performance",
"from",
"year",
"to",
"year",
"and",
"by",
"showing",
"how",
"the",
"Fund",
"s",
"average",
"annual",
"returns",
"compare",
"with",
"those",
"of",
"a",
"broad",
"measure",
"of",
"market",
"performance",
".",
"PORTFOLIO",
"MANAGEMENT",
"James",
"Investment",
"Research",
",",
"Inc.",
"is",
"the",
"investment",
"adviser",
"to",
"the",
"Fund",
".",
"The",
"Fund",
"is",
"managed",
"by",
"an",
"investment",
"committee",
"of",
"the",
"Adviser",
"consisting",
"of",
"the",
"following",
"seven",
"members",
":",
"You",
"can",
"buy",
"and",
"redeem",
"shares",
"of",
"the",
"Fund",
"on",
"any",
"day",
"the",
"NYSE",
"is",
"open",
"for",
"business",
"by",
"calling",
"1-800-99JAMES",
"(",
"1-800-995-2637",
")",
";",
"by",
"writing",
"to",
"The",
"James",
"Advantage",
"Funds",
",",
"P.O",
".",
"Box",
"786",
",",
"Denver",
",",
"CO",
"80201",
";",
"via",
"overnight",
"mail",
"at",
"1290",
"Broadway",
",",
"Suite",
"1100",
",",
"Denver",
",",
"CO",
"80203",
";",
"via",
"the",
"Fund",
"s",
"website",
"at",
"www.jamesfunds.com",
";",
"through",
"a",
"financial",
"intermediary",
"that",
"has",
"established",
"an",
"agreement",
"with",
"the",
"Fund",
"s",
"distributor",
";",
"or",
"if",
"you",
"are",
"a",
"client",
"of",
"the",
"Adviser",
".",
"DIVIDENDS",
",",
"CAPITAL",
"GAINS",
"AND",
"TAXES",
"The",
"Fund",
"s",
"distributions",
"may",
"be",
"taxable",
"as",
"ordinary",
"income",
"or",
"capital",
"gains",
",",
"except",
"when",
"your",
"investment",
"is",
"in",
"an",
"IRA",
",",
"401"
] |
15 | 103101 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"may",
"be",
"taxable",
"as",
"ordinary",
"income",
"or",
"capital",
"gains",
",",
"except",
"when",
"your",
"investment",
"is",
"in",
"an",
"IRA",
",",
"401",
"(",
"k",
")",
"or",
"other",
"tax-advantaged",
"investment",
"plan",
".",
"POTENTIAL",
"CONFLICTS",
"OF",
"INTEREST",
"If",
"you",
"purchase",
"the",
"Fund",
"through",
"a",
"broker-dealer",
"or",
"other",
"financial",
"intermediary",
"(",
"such",
"as",
"a",
"bank",
")",
",",
"the",
"Fund",
"and",
"its",
"related",
"companies",
"may",
"pay",
"the",
"intermediary",
"for",
"the",
"sale",
"of",
"Fund",
"shares",
"and",
"related",
"services",
".",
"These",
"payments",
"may",
"create",
"a",
"conflict",
"of",
"interest",
"by",
"influencing",
"the",
"broker-dealer",
"or",
"other",
"intermediary",
"and",
"your",
"salesperson",
"to",
"recommend",
"the",
"Fund",
"over",
"another",
"investment",
".",
"Ask",
"your",
"salesperson",
"or",
"visit",
"your",
"financial",
"intermediary",
"s",
"website",
"for",
"more",
"information",
"."
] |
16 | 103214 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"If",
"the",
"filing",
"person",
"has",
"previously",
"filed",
"a",
"statement",
"on",
"Schedule",
"13G",
"to",
"report",
"the",
"acquisition",
"which",
"is",
"the",
"subject",
"of",
"this",
"Schedule",
"13D",
",",
"and",
"is",
"filing",
"this",
"schedule",
"because",
"of",
"Rule",
"13d-1",
"(",
"e",
")",
",",
"13d-1",
"(",
"f",
")",
"or",
"13d-1",
"(",
"g",
")",
",",
"check",
"the",
"following",
"box",
"[",
"X",
"]",
".",
"Note",
":",
"Schedules",
"filed",
"in",
"paper",
"format",
"shall",
"include",
"a",
"signed",
"original",
"and",
"five",
"copies",
"of",
"the",
"schedule",
",",
"including",
"all",
"exhibits",
".",
"See",
"Rule",
"13d-7",
"(",
"b",
")",
"for",
"other",
"parties",
"to",
"whom",
"copies",
"are",
"to",
"be",
"sent",
".",
"*",
"The",
"remainder",
"of",
"this",
"cover",
"page",
"shall",
"be",
"filled",
"out",
"for",
"a",
"reporting",
"person",
"'s",
"initial",
"filing",
"on",
"this",
"form",
"with",
"respect",
"to",
"the",
"subject",
"class",
"of",
"securities",
",",
"and",
"for",
"any",
"subsequent",
"amendment",
"containing",
"information",
"which",
"would",
"alter",
"disclosures",
"provided",
"in",
"a",
"prior",
"cover",
"page",
".",
"The",
"information",
"required",
"on",
"the",
"remainder",
"of",
"this",
"cover",
"page",
"shall",
"not",
"be",
"deemed",
"to",
"be",
"``",
"filed",
"''",
"for",
"the",
"purpose",
"of",
"Section",
"18",
"of",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
"(",
"``",
"Act",
"''",
")",
"or",
"otherwise",
"subject",
"to",
"the",
"liabilities",
"of",
"that",
"section",
"of",
"the",
"Act",
"but",
"shall",
"be",
"subject",
"to",
"all",
"other",
"provisions",
"of",
"the",
"Act",
"(",
"however",
",",
"see",
"the",
"Notes",
")",
".",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"REQUIRED",
"PURSUANT",
"TO",
"ITEMS",
"2",
"(",
"d",
")",
"or",
"2",
"(",
"e",
")",
"[",
"]",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"REQUIRED",
"PURSUANT",
"TO",
"ITEMS",
"2",
"(",
"d",
")",
"or",
"2",
"(",
"e",
")",
"[",
"]",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE"
] |
16 | 103601 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
6,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0
] | [
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"5.CHECK",
"BOX",
"IF",
"DISCLOSURE",
"OF",
"LEGAL",
"PROCEEDINGS",
"IS",
"REQUIRED",
"PURSUANT",
"TO",
"ITEMS",
"2",
"(",
"d",
")",
"or",
"2",
"(",
"e",
")",
"[",
"]",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"REQUIRED",
"PURSUANT",
"TO",
"ITEMS",
"2",
"(",
"d",
")",
"or",
"2",
"(",
"e",
")",
"[",
"]",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"2.CHECK",
"THE",
"APPROPRIATE",
"BOX",
"IF",
"A",
"MEMBER",
"OF",
"A",
"GROUP",
"*",
"(",
"a",
")",
"[",
"x",
"]",
"(",
"b",
")",
"[",
"]",
"4.SOURCE",
"OF",
"FUNDS",
"*",
"REQUIRED",
"PURSUANT",
"TO",
"ITEMS",
"2",
"(",
"d",
")",
"or",
"2",
"(",
"e",
")",
"[",
"]",
"12.CHECK",
"BOX",
"IF",
"THE",
"AGGREGATE",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"EXCLUDES",
"CERTAIN",
"SHARES",
"*",
"[",
"]",
"13.PERCENT",
"OF",
"CLASS",
"REPRESENTED",
"BY",
"AMOUNT",
"IN",
"ROW",
"(",
"11",
")",
"The",
"Reporting",
"Persons",
"(",
"as",
"defined",
"below",
")",
"had",
"previously",
"reported",
"their",
"holdings",
"in",
"the",
"Schedule",
"13G",
"originally",
"filed",
"on",
"January",
"12",
",",
"2009",
",",
"as",
"subsequently",
"amended",
".",
"ITEM",
"1.Security",
"and",
"Issuer",
".",
"This",
"statement",
"relates",
"to",
"the",
"shares",
"of",
"common",
"stock",
",",
"$",
"0.10",
"par",
"value",
"(",
"``",
"Common",
"Stock",
"''",
")",
"of",
"Zygo",
"Corporation",
"(",
"the",
"``",
"Issuer",
"''",
")",
".",
"The",
"Issuer",
"'s",
"principal",
"executive",
"office",
"is",
"located",
"at",
"Laurel",
"Brook",
"Road",
",",
"Middlefield",
",",
"Connecticut",
"06455",
".",
"Identity",
"and",
"Background",
".",
"(",
"a",
")",
"-",
"(",
"c",
")",
"and",
"(",
"f",
")",
"The",
"names",
"of",
"the",
"persons",
"filing",
"this",
"statement",
"on",
"Schedule",
"13D",
"are",
":",
"MAK",
"Capital",
"One",
"LLC",
",",
"a",
"Delaware",
"limited",
"liability",
"company",
"(",
"“",
"MAK",
"Capital",
"”",
")",
",",
"MAK",
"Capital",
"Fund",
"LP",
",",
"a",
"Bermuda",
"limited",
"partnership",
"(",
"“"
] |
16 | 103951 | [
0,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
3,
4,
0,
0,
0,
0,
5,
6,
0,
0,
0,
1,
2,
2,
0,
0,
0,
1,
0,
0,
0,
3,
4,
4,
0,
0,
5,
0,
0,
0,
0,
3,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
1,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
3,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
3,
0,
1,
0,
0,
0,
0,
0,
3,
0,
3,
4,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
0,
3,
4,
4,
4,
4,
0,
0,
5,
6,
0,
5,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
0,
1,
0,
0,
5,
6,
0,
0,
0,
0,
5,
6,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
3,
0,
0,
5,
6,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
3,
0,
0,
5,
6,
6,
0,
0,
0,
0,
5,
6,
0,
5,
6,
6,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"liability",
"company",
"(",
"“",
"MAK",
"Capital",
"”",
")",
",",
"MAK",
"Capital",
"Fund",
"LP",
",",
"a",
"Bermuda",
"limited",
"partnership",
"(",
"“",
"MAK",
"Fund",
"”",
")",
",",
"MAK-ro",
"Capital",
"Master",
"Fund",
"LP",
"(",
"“",
"MAK-ro",
"Fund",
"”",
")",
",",
"a",
"Cayman",
"Islands",
"limited",
"partnership",
",",
"Michael",
"A.",
"Kaufman",
"(",
"“",
"Mr.",
"Kaufman",
"”",
")",
",",
"Paloma",
"International",
"L.P.",
",",
"a",
"Delaware",
"limited",
"partnership",
"(",
"``",
"Paloma",
"''",
")",
",",
"and",
"S.",
"Donald",
"Sussman",
"(",
"“",
"Mr.",
"Sussman",
",",
"”",
"and",
"collectively",
",",
"the",
"``",
"Reporting",
"Persons",
"''",
")",
".",
"MAK",
"GP",
"LLC",
",",
"a",
"Delaware",
"limited",
"liability",
"company",
"(",
"“",
"MAK",
"GP",
"”",
")",
",",
"is",
"the",
"general",
"partner",
"of",
"MAK",
"Fund",
"and",
"MAK-ro",
"Fund",
".",
"Kaufman",
"is",
"the",
"controlling",
"person",
"of",
"MAK",
"GP",
".",
"Paloma",
"Partners",
"Company",
"L.L.C.",
",",
"a",
"Delaware",
"limited",
"liability",
"company",
"(",
"“",
"PPC",
"”",
")",
"and",
"Trust",
"Asset",
"Management",
"LLP",
",",
"a",
"Delaware",
"limited",
"liability",
"partnership",
"(",
"“",
"TAM",
"”",
")",
"are",
"the",
"general",
"partners",
"of",
"Paloma",
".",
"Sussman",
"is",
"the",
"controlling",
"person",
"of",
"TAM",
".",
"MAK",
"Capital",
"is",
"the",
"investment",
"manager",
"for",
"MAK",
"Fund",
",",
"MAK-ro",
"Fund",
"and",
"Paloma",
"with",
"respect",
"to",
"the",
"securities",
"reported",
"in",
"this",
"Schedule",
"13D",
".",
"Kaufman",
"is",
"the",
"controlling",
"person",
"of",
"MAK",
"Capital",
".",
"The",
"principal",
"business",
"address",
"for",
"MAK",
"Fund",
"and",
"MAK-ro",
"Fund",
"is",
"c/o",
"Dundee",
"Leeds",
"Management",
"Services",
"Ltd.",
",",
"129",
"Front",
"Street",
",",
"Hamilton",
",",
"HM",
"12",
",",
"Bermuda",
".",
"The",
"principal",
"business",
"address",
"for",
"each",
"of",
"MAK",
"Capital",
",",
"MAK",
"GP",
"and",
"Mr.",
"Kaufman",
"is",
"590",
"Madison",
"Avenue",
",",
"9th",
"Floor",
",",
"New",
"York",
",",
"New",
"York",
"10022",
".",
"The",
"principal",
"business",
"address",
"for",
"each",
"of",
"Paloma",
"and",
"PPC",
"is",
"Two",
"American",
"Lane",
",",
"Greenwich",
",",
"Connecticut",
"06836-2571",
".",
"The",
"principal",
"business",
"address",
"for",
"each",
"of",
"Mr.",
"Sussman",
"and",
"TAM",
"is",
"6100",
"Red",
"Hook",
"Quarters",
",",
"Suites",
"C1-C6",
",",
"St.",
"Thomas",
",",
"US",
"Virgin",
"Islands",
"00802-1348",
".",
"The",
"principal",
"business",
"of",
"each",
"of",
"MAK",
"Fund",
"and",
"Paloma",
"is",
"a",
"private",
"investment",
"fund",
".",
"The",
"principal",
"business",
"of",
"each",
"of",
"Mr.",
"Kaufman",
"and",
"Mr.",
"Sussman",
"is",
"providing",
"investment",
"management",
"services",
".",
"The",
"principal",
"business",
"of",
"each",
"of",
"MAK",
"Capital",
",",
"MAK",
"GP",
"and",
"TAM",
"is",
"providing",
"investment",
"management",
"services",
".",
"The",
"principal",
"business",
"of",
"PPC",
"is",
"providing",
"administrative",
"services",
".",
"(",
"d",
")",
"During",
"the",
"last",
"five",
"years",
",",
"none",
"of",
"the",
"persons",
"or",
"entities",
"listed",
"above",
"in",
"this",
"Item",
"2",
"has",
"been",
"convicted",
"in",
"a",
"criminal",
"proceeding",
"(",
"excluding",
"traffic",
"violations",
"or",
"similar",
"misdemeanors",
")",
".",
"("
] |
16 | 104341 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"this",
"Item",
"2",
"has",
"been",
"convicted",
"in",
"a",
"criminal",
"proceeding",
"(",
"excluding",
"traffic",
"violations",
"or",
"similar",
"misdemeanors",
")",
".",
"(",
"e",
")",
"During",
"the",
"last",
"five",
"years",
",",
"none",
"of",
"the",
"persons",
"or",
"entities",
"listed",
"above",
"in",
"this",
"Item",
"2",
"has",
"been",
"a",
"party",
"to",
"a",
"civil",
"proceeding",
"of",
"a",
"judicial",
"or",
"administrative",
"body",
"of",
"competent",
"jurisdiction",
"and",
"as",
"a",
"result",
"of",
"such",
"proceeding",
"was",
"or",
"is",
"subject",
"to",
"a",
"judgment",
",",
"decree",
"or",
"final",
"order",
"enjoining",
"future",
"violations",
"of",
",",
"or",
"prohibiting",
"or",
"mandating",
"activities",
"subject",
"to",
",",
"federal",
"or",
"state",
"securities",
"laws",
"or",
"finding",
"any",
"violation",
"with",
"respect",
"to",
"such",
"laws",
".",
"ITEM",
"3.Source",
"and",
"Amount",
"of",
"Funds",
"or",
"Other",
"Consideration",
".",
"The",
"Reporting",
"Persons",
"acquired",
"the",
"shares",
"of",
"Common",
"Stock",
"reported",
"herein",
"at",
"an",
"aggregate",
"cost",
"of",
"$",
"26,479,725",
".",
"The",
"funds",
"used",
"to",
"purchase",
"the",
"shares",
"of",
"Common",
"Stock",
"were",
"obtained",
"from",
"the",
"general",
"working",
"capital",
"of",
"MAK",
"Fund",
",",
"MAK-ro",
"Fund",
"and",
"Paloma",
",",
"as",
"applicable",
",",
"which",
"may",
"at",
"any",
"given",
"time",
"include",
"funds",
"borrowed",
"in",
"the",
"ordinary",
"course",
"in",
"their",
"margin",
"accounts",
".",
"ITEM",
"4.Purpose",
"of",
"Transaction",
".",
"All",
"of",
"the",
"shares",
"of",
"Common",
"Stock",
"reported",
"as",
"being",
"beneficially",
"owned",
"by",
"the",
"Reporting",
"Persons",
"in",
"this",
"Schedule",
"13D",
"were",
"acquired",
"for",
"investment",
"purposes",
".",
"This",
"Schedule",
"13D",
"is",
"being",
"filed",
"because",
"of",
"Rule",
"13d-1",
"(",
"f",
")",
"promulgated",
"under",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
",",
"which",
"requires",
"persons",
"reporting",
"on",
"Schedule",
"13G",
"to",
"file",
"a",
"Schedule",
"13D",
"when",
"beneficial",
"ownership",
"equals",
"or",
"exceeds",
"20",
"percent",
"of",
"the",
"class",
"of",
"equity",
"securities",
".",
"MAK",
"Capital",
"and",
"the",
"funds",
"it",
"manages",
"seek",
"to",
"acquire",
"meaningful",
"ownership",
"positions",
"in",
"companies",
"they",
"believe",
"have",
"strong",
"long-term",
"prospects",
"relative",
"to",
"the",
"stock",
"market",
"valuation",
"of",
"their",
"equity",
"and",
"support",
"boards",
"and",
"managements",
"which",
"work",
"diligently",
"and",
"effectively",
"toward",
"enhancing",
"performance",
"and",
"stockholder",
"value",
".",
"Consistent",
"with",
"this",
"approach",
",",
"the",
"Reporting",
"Persons",
"currently",
"intend",
"to",
"acquire",
"additional",
"shares",
"of",
"Common",
"Stock",
"if",
"market",
"conditions",
"permit",
"purchases",
"at",
"prices",
"which",
"the",
"Reporting",
"Persons",
"consider",
"attractive",
".",
"The",
"Reporting",
"Persons",
"have",
"no",
"intention",
"of",
"seeking",
"control",
"of",
"the",
"Issuer",
".",
"However",
",",
"the",
"Reporting",
"Persons",
"may",
",",
"from",
"time",
"to",
"time",
",",
"communicate",
"with",
"members",
"of",
"the",
"Issuer",
"’",
"s",
"board",
"of",
"directors",
"or",
"management",
",",
"other",
"holders",
"of",
"shares",
"of",
"Common",
"Stock",
"and",
"other",
"persons",
"regarding",
"the",
"Issuer",
"’",
"s",
"efforts",
"to",
"enhance",
"operating",
"and",
"financial",
"performance",
"and",
"market",
"value",
"and",
"strategic",
"alternatives",
"available",
"to",
"the",
"Issuer",
".",
"The",
"Reporting",
"Persons",
"frequently",
"monitor",
"their",
"investments",
"and",
",",
"therefore",
",",
"reserve",
"the",
"right",
"to",
"dispose",
"of",
"shares",
"of",
"Common",
"Stock",
"depending",
"upon",
"market",
"conditions",
".",
"Except",
"as",
"set",
"forth",
"herein",
",",
"none",
"of",
"the",
"Reporting",
"Persons",
",",
"nor",
"to",
"their",
"knowledge",
",",
"any",
"of",
"the",
"other",
"persons",
"identified",
"in",
"the",
"response",
"to",
"Item",
"2",
",",
"has"
] |
16 | 104791 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
1,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
3,
4,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
1,
0,
3,
4,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
",",
"nor",
"to",
"their",
"knowledge",
",",
"any",
"of",
"the",
"other",
"persons",
"identified",
"in",
"the",
"response",
"to",
"Item",
"2",
",",
"has",
"any",
"plans",
"or",
"proposals",
"related",
"to",
"or",
"which",
"would",
"result",
"in",
"any",
"of",
"the",
"matters",
"described",
"in",
"subparagraphs",
"(",
"a",
")",
"through",
"(",
"j",
")",
"of",
"item",
"4",
"of",
"Schedule",
"13D",
".",
"ITEM",
"5.Interest",
"in",
"Securities",
"of",
"the",
"Issuer",
".",
"(",
"a",
")",
"The",
"Reporting",
"Persons",
"beneficially",
"own",
":",
"The",
"Reporting",
"Persons",
"collectively",
"beneficially",
"own",
"3,556,460",
"shares",
"of",
"Common",
"Stock",
"representing",
"20.4",
"%",
"percent",
"of",
"the",
"outstanding",
"shares",
"of",
"Common",
"Stock",
".",
"The",
"20.4",
"%",
"ownership",
"calculation",
"was",
"based",
"on",
"the",
"17,410,525",
"shares",
"of",
"Common",
"Stock",
"outstanding",
"as",
"of",
"February",
"1",
",",
"2010",
"as",
"reported",
"in",
"the",
"Form",
"10-Q",
"filed",
"by",
"the",
"Issuer",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"on",
"February",
"9",
",",
"2010",
".",
"MAK",
"Fund",
"individually",
"owns",
"2,698,844",
"shares",
"of",
"Common",
"Stock",
"representing",
"15.5",
"%",
"of",
"the",
"outstanding",
"shares",
"of",
"Common",
"Stock",
".",
"MAK-ro",
"Fund",
"individually",
"owns",
"140,546",
"shares",
"of",
"Common",
"Stock",
"representing",
"0.8",
"%",
"of",
"the",
"outstanding",
"shares",
"of",
"Common",
"Stock",
".",
"Paloma",
"individually",
"owns",
"717,070",
"shares",
"of",
"Common",
"Stock",
"representing",
"4.1",
"%",
"of",
"the",
"outstanding",
"shares",
"of",
"Common",
"Stock",
".",
"Paloma",
"holds",
"its",
"shares",
"of",
"Common",
"Stock",
"through",
"its",
"subsidiary",
",",
"Sunrise",
"Partners",
"Limited",
"Partnership",
",",
"a",
"Delaware",
"limited",
"partnership",
".",
"(",
"b",
")",
"MAK",
"Fund",
",",
"MAK",
"Capital",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"vote",
"or",
"direct",
"the",
"vote",
"of",
"the",
"2,698,844",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"MAK",
"Fund",
".",
"MAK-ro",
"Capital",
",",
"MAK",
"Fund",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"vote",
"or",
"direct",
"the",
"vote",
"of",
"the",
"140,546",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"MAK-ro",
"Fund",
".",
"Sussman",
",",
"MAK",
"Capital",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"vote",
"or",
"direct",
"the",
"vote",
"of",
"the",
"717,070",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"Paloma",
".",
"MAK",
"Fund",
",",
"MAK",
"Capital",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"dispose",
"or",
"direct",
"the",
"disposition",
"of",
"the",
"2,698,844",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"MAK",
"Fund",
".",
"MAK-ro",
"Fund",
",",
"MAK",
"Capital",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"dispose",
"or",
"direct",
"the",
"disposition",
"of",
"the",
"140,546",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"MAK-ro",
"Fund",
".",
"Sussman",
",",
"MAK",
"Capital",
"and",
"Mr.",
"Kaufman",
"have",
"shared",
"power",
"to",
"dispose",
"or",
"direct",
"the",
"disposition",
"of",
"the",
"717,070",
"shares",
"of",
"Common",
"Stock",
"owned",
"by",
"Paloma",
".",
"(",
"c",
")",
"A",
"list",
"of",
"the",
"transactions",
"in",
"the",
"Issuer",
"’",
"s",
"Common",
"Stock",
"that",
"were",
"effected",
"by",
"the",
"Reporting",
"Persons"
] |
16 | 105181 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
0,
0,
0,
1,
2,
0,
0,
0,
1,
2,
3,
4,
4,
0,
0,
0,
1,
2,
0,
0,
0,
1,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
1,
2,
0,
0,
0,
1,
2,
3,
4,
4,
0,
0,
0,
1,
2,
0,
0,
0,
1,
2,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
")",
"A",
"list",
"of",
"the",
"transactions",
"in",
"the",
"Issuer",
"’",
"s",
"Common",
"Stock",
"that",
"were",
"effected",
"by",
"the",
"Reporting",
"Persons",
"during",
"the",
"past",
"sixty",
"days",
"is",
"attached",
"hereto",
"as",
"Exhibit",
"B",
".",
"After",
"reasonable",
"inquiry",
"and",
"to",
"the",
"best",
"of",
"its",
"knowledge",
"and",
"belief",
",",
"the",
"undersigned",
"each",
"certifies",
"that",
"the",
"information",
"with",
"respect",
"to",
"it",
"set",
"forth",
"in",
"this",
"statement",
"is",
"true",
",",
"complete",
"and",
"correct",
".",
"By",
":",
"/s/",
"Michael",
"A.",
"By",
":",
"/s/",
"Michael",
"A.",
"By",
":",
"/s/",
"Michael",
"A.",
"PALOMA",
"INTERNATIONAL",
"L.P.",
"By",
":",
"/s/",
"Michael",
"J.",
"By",
":",
"/s/",
"Michael",
"J.",
"The",
"undersigned",
"hereby",
"agree",
"that",
"the",
"statement",
"on",
"Schedule",
"13D",
"with",
"respect",
"to",
"the",
"Common",
"Stock",
"of",
"Zygo",
"Corporation",
"dated",
"as",
"of",
"March",
"8",
",",
"2010",
"is",
",",
"and",
"any",
"further",
"amendments",
"thereto",
"signed",
"by",
"each",
"of",
"the",
"undersigned",
"shall",
"be",
",",
"filed",
"on",
"behalf",
"of",
"each",
"of",
"the",
"undersigned",
"pursuant",
"to",
"and",
"in",
"accordance",
"with",
"the",
"provisions",
"of",
"Rule",
"13d-1",
"(",
"k",
")",
"under",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
".",
"By",
":",
"/s/",
"Michael",
"A",
".",
"By",
":",
"/s/",
"Michael",
"A.",
"By",
":",
"/s/",
"Michael",
"A.",
"PALOMA",
"INTERNATIONAL",
"L.P.",
"By",
":",
"/s/",
"Michael",
"J.",
"By",
":",
"/s/",
"Michael",
"J.",
"The",
"following",
"transactions",
"were",
"effected",
"by",
"MAK",
"Capital",
"Fund",
"LP",
"during",
"the",
"past",
"sixty",
"(",
"60",
")",
"days",
":",
"The",
"following",
"transactions",
"were",
"effected",
"by",
"MAK-ro",
"Capital",
"Master",
"Fund",
"LP",
"during",
"the",
"past",
"sixty",
"(",
"60",
")",
"days",
":",
"The",
"following",
"transactions",
"were",
"effected",
"by",
"Paloma",
"International",
"L.P.",
"during",
"the",
"past",
"sixty",
"(",
"60",
")",
"days",
":",
"The",
"above",
"transactions",
"were",
"effected",
"on",
"the",
"open",
"market",
".",
"The",
"undersigned",
"hereby",
"makes",
",",
"constitutes",
"and",
"appoints",
"each",
"of",
"Michael",
"J.",
"Berner",
"and",
"Douglas",
"W.",
"Ambrose",
"as",
"the",
"undersigned",
"’",
"s",
"true",
"and",
"lawful",
"authorized",
"representative",
",",
"attorney-in-fact",
"and",
"agent",
",",
"each",
"with",
"the",
"power",
"individually",
"to",
"execute",
"for",
"and",
"on",
"behalf",
"of",
"the",
"undersigned",
"and",
"to",
"file",
"with",
"and",
"deliver",
"to",
"the",
"United",
"States",
"Securities",
"and",
"Exchange",
"Commission",
"and",
"any",
"other",
"authority",
"or",
"party",
"required",
"or",
"entitled",
"to",
"receive",
"the",
"same",
":",
"(",
"a",
")",
"any",
"Forms",
"3",
",",
"4",
"and",
"5",
",",
"and",
"any",
"amendments",
"thereto",
",",
"in",
"accordance",
"with",
"Section",
"16",
"(",
"a",
")",
"of",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
"(",
"the",
"“",
"1934",
"Act",
"”",
")",
",",
"and",
"the",
"rules",
"promulgated",
"thereunder",
";",
"and",
"(",
"b",
")",
"any",
"Schedule",
"13D",
"or",
"Schedule",
"13G",
",",
"and",
"any",
"amendments",
"thereto",
",",
"on",
"behalf",
"of",
"the",
"undersigned",
"in",
"accordance",
"with",
"Section",
"13",
"of",
"the",
"1934",
"Act",
"and",
"the",
"rules",
"promulgated",
"thereunder",
".",
"The",
"undersigned",
"also",
"hereby",
"grants"
] |
16 | 105591 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
6,
0,
5,
6,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"in",
"accordance",
"with",
"Section",
"13",
"of",
"the",
"1934",
"Act",
"and",
"the",
"rules",
"promulgated",
"thereunder",
".",
"The",
"undersigned",
"also",
"hereby",
"grants",
"to",
"each",
"such",
"attorney-in-fact",
"the",
"full",
"power",
"and",
"authority",
"to",
"do",
"and",
"perform",
"all",
"and",
"every",
"act",
"and",
"thing",
"whatsoever",
"requisite",
",",
"necessary",
"and",
"proper",
"to",
"be",
"done",
"in",
"the",
"exercise",
"of",
"any",
"of",
"the",
"rights",
"and",
"powers",
"herein",
"granted",
",",
"hereby",
"ratifying",
"and",
"confirming",
"all",
"that",
"such",
"attorney-in-fact",
"shall",
"lawfully",
"do",
"or",
"cause",
"to",
"be",
"done",
"by",
"virtue",
"of",
"this",
"power",
"of",
"attorney",
"and",
"the",
"rights",
"and",
"powers",
"herein",
"granted",
".",
"The",
"undersigned",
"acknowledges",
"that",
"each",
"of",
"the",
"foregoing",
"attorneys-in-fact",
",",
"in",
"serving",
"in",
"such",
"capacity",
"at",
"the",
"request",
"of",
"the",
"undersigned",
",",
"is",
"not",
"assuming",
"any",
"of",
"the",
"undersigned",
"’",
"s",
"responsibilities",
"to",
"comply",
"with",
"Section",
"16",
"or",
"Section",
"13",
"or",
"any",
"other",
"provision",
"of",
"the",
"1934",
"Act",
"or",
"the",
"rules",
"promulgated",
"thereunder",
".",
"This",
"Power",
"of",
"Attorney",
"shall",
"remain",
"in",
"full",
"force",
"and",
"effect",
"until",
"earlier",
"revoked",
"by",
"the",
"undersigned",
"in",
"a",
"signed",
"writing",
"delivered",
"to",
"the",
"foregoing",
"attorneys-in-fact",
".",
"IN",
"WITNESS",
"WHEREOF",
",",
"the",
"undersigned",
"has",
"caused",
"this",
"Power",
"of",
"Attorney",
"to",
"be",
"executed",
"as",
"of",
"May",
"9",
",",
"2006",
".",
"STATE",
"OF",
"CONNECTICUT",
",",
"COUNTY",
"OF",
"FAIRFIELD",
"ss",
".",
":",
"On",
"May",
"9",
",",
"2006",
",",
"before",
"me",
",",
"the",
"undersigned",
"personally",
"appeared",
",",
"S.",
"Donald",
"Sussman",
",",
"personally",
"known",
"to",
"me",
"or",
"proved",
"to",
"me",
"on",
"the",
"basis",
"of",
"satisfactory",
"evidence",
"to",
"be",
"the",
"individual",
"whose",
"name",
"is",
"subscribed",
"to",
"the",
"within",
"instrument",
"and",
"acknowledged",
"to",
"me",
"that",
"he",
"executed",
"the",
"same",
"in",
"his",
"capacity",
",",
"and",
"that",
"by",
"his",
"signature",
"on",
"the",
"instrument",
",",
"the",
"individual",
",",
"or",
"the",
"person",
"upon",
"behalf",
"of",
"which",
"the",
"individual",
"acted",
",",
"executed",
"the",
"instrument",
".",
"(",
"signature",
"and",
"office",
"of",
"individual",
"taking",
"acknowledgement",
")"
] |
17 | 105890 | [
1,
2,
3,
4,
4,
4,
4,
4,
4,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
3,
4,
4,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Dominic",
"Minore",
"Securities",
"and",
"Exchange",
"Commission",
"Investment",
"Company",
"Division",
"100",
"F.",
"Street",
",",
"N.E.",
"This",
"letter",
"responds",
"to",
"the",
"comments",
"on",
"Post-Effective",
"Amendment",
"No.",
"39",
"to",
"the",
"Registrant",
"s",
"registration",
"statement",
"on",
"Form",
"N-1A",
"on",
"behalf",
"of",
"the",
"Ariel",
"Fund",
",",
"Ariel",
"Appreciation",
"Fund",
"and",
"Ariel",
"Focus",
"fund",
"that",
"were",
"provided",
"to",
"me",
"by",
"telephone",
"by",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"Commission",
")",
"on",
"January",
"14",
",",
"2010",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Fees",
"and",
"Expenses",
"of",
"the",
"Fund",
"in",
"the",
"Prospectus",
"in",
"the",
"lead",
"in",
"paragraph",
",",
"please",
"delete",
"the",
"sentence",
"You",
"do",
"not",
"pay",
"a",
"sales",
"charge",
"or",
"load",
"when",
"you",
"buy",
"or",
"sell",
"shares",
".",
"Response",
":",
"In",
"the",
"past",
",",
"the",
"Registrant",
"has",
"received",
"many",
"calls",
"from",
"shareholders",
"inquiring",
"whether",
"a",
"Fund",
"is",
"a",
"load",
"or",
"no",
"load",
"fund",
".",
"In",
"response",
",",
"the",
"Registrant",
"added",
"the",
"disclosure",
"You",
"do",
"not",
"pay",
"a",
"sales",
"charge",
"or",
"load",
"when",
"you",
"buy",
"or",
"sell",
"shares",
"to",
"its",
"Prospectus",
".",
"Therefore",
"in",
"order",
"to",
"avoid",
"any",
"confusion",
"on",
"the",
"part",
"of",
"shareholders",
"or",
"potential",
"investors",
",",
"the",
"Registrant",
"believes",
"the",
"disclosure",
"should",
"remain",
"in",
"the",
"Prospectus",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Fees",
"and",
"Expenses",
"of",
"the",
"Fund",
"in",
"the",
"Prospectus",
",",
"please",
"delete",
"the",
"sentences",
"The",
"expenses",
"are",
"based",
"on",
"actual",
"expenses",
"incurred",
"for",
"the",
"fiscal",
"year",
"ended",
"September",
"30",
",",
"2009",
".",
"Expenses",
"may",
"vary",
"in",
"future",
"years",
".",
"Response",
":",
"The",
"changes",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Fees",
"and",
"Expenses",
"of",
"the",
"Fund",
"in",
"the",
"Prospectus",
"in",
"the",
"lead",
"in",
"paragraph",
"for",
"the",
"Example",
",",
"please",
"(",
"i",
")",
"delete",
"the",
"phrase",
"based",
"on",
"the",
"current",
"level",
"of",
"expenses",
"at",
"the",
"end",
"of",
"the",
"first",
"sentence",
",",
"(",
"ii",
")",
"delete",
"the",
"phrase",
"dividends",
"and",
"distributions",
"are",
"reinvested",
"from",
"the",
"second",
"sentence",
"and",
"replace",
"with",
"the",
"Fund",
"s",
"operating",
"expenses",
"remain",
"the",
"same",
",",
"and",
"(",
"iii",
")",
"move",
"the",
"sentences",
"below",
"the",
"example",
"table",
"to",
"the",
"lead",
"in",
"paragraph",
"above",
"the",
"Example",
".",
"Response",
":",
"The",
"changes",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"Please",
"provide",
"the",
"heading",
"Portfolio",
"Turnover",
"before",
"the",
"paragraph",
"that",
"describes",
"the",
"Fund",
"s",
"portfolio",
"turnover",
".",
"Response",
":",
"The",
"change",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Principal",
"Investment",
"Strategy",
"in",
"the",
"Prospectus",
",",
"the",
"first",
"sentence",
"of",
"the",
"first",
"paragraph",
"states",
"that",
"the",
"Ariel",
"Fund",
"invests",
"primarily",
"in",
"stocks",
"of",
"companies",
"with",
"market",
"capitalizations",
"between",
"$",
"1",
"billion",
"and",
"$",
"5",
"billion",
",",
"measured",
"at",
"the",
"time",
"of",
"purchase",
".",
"Please",
"provide",
"a",
"definition",
"of",
"stocks",
".",
"For",
"example",
",",
"stocks",
"are",
"common",
"stocks",
",",
"preferred",
"stocks",
"and",
"securities",
"convertible",
"into",
"common",
"stock"
] |
17 | 106331 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"definition",
"of",
"stocks",
".",
"For",
"example",
",",
"stocks",
"are",
"common",
"stocks",
",",
"preferred",
"stocks",
"and",
"securities",
"convertible",
"into",
"common",
"stock",
".",
"Response",
":",
"The",
"sentence",
"will",
"be",
"revised",
"to",
"read",
"as",
"follows",
":",
"Ariel",
"Fund",
"invests",
"primarily",
"in",
"common",
"stocks",
"of",
"companies",
"with",
"market",
"capitalizations",
"between",
"$",
"1",
"billion",
"and",
"$",
"5",
"billion",
",",
"measured",
"at",
"the",
"time",
"of",
"purchase",
".",
"SEC",
"Comment",
":",
"Please",
"remove",
"the",
"legend",
"Fund",
"Summaries-Prospectus",
"at",
"the",
"bottom",
"of",
"the",
"page",
".",
"Response",
":",
"The",
"change",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Principal",
"Investment",
"Strategy",
"in",
"the",
"Prospectus",
",",
"the",
"last",
"sentence",
"of",
"the",
"fourth",
"paragraph",
"states",
"that",
":",
"We",
"will",
"sell",
"a",
"stock",
"if",
"its",
"valuation",
"reaches",
"our",
"private",
"market",
"value",
"as",
"determined",
"by",
"the",
"Adviser",
"or",
"if",
"there",
"are",
"material",
"changes",
"to",
"a",
"company",
"s",
"thesis",
"or",
"fundamentals",
".",
"Please",
"explain",
"thesis",
"in",
"Plain",
"English",
".",
"Response",
":",
"The",
"Registrant",
"will",
"revise",
"its",
"disclosure",
".",
"The",
"sentence",
"will",
"now",
"read",
"as",
"follows",
":",
"We",
"will",
"sell",
"a",
"stock",
"if",
"its",
"valuation",
"reaches",
"our",
"private",
"market",
"value",
"as",
"determined",
"by",
"the",
"Adviser",
"or",
"if",
"there",
"are",
"material",
"changes",
"to",
"a",
"company",
"s",
"fundamentals",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Principal",
"Risks",
"in",
"the",
"Prospectus",
",",
"the",
"last",
"bullet",
"point",
"states",
"that",
":",
"The",
"Fund",
"may",
"invest",
"a",
"significant",
"portion",
"of",
"its",
"assets",
"in",
"companies",
"within",
"the",
"financial",
"services",
"and",
"consumer",
"discretionary",
"sectors",
".",
"bullet",
"point",
"does",
"not",
"convey",
"a",
"risk",
".",
"Please",
"revise",
"to",
"make",
"it",
"a",
"risk",
"and",
"revise",
"the",
"Fund",
"s",
"principal",
"strategy",
"as",
"necessary",
".",
"Response",
":",
"The",
"Fund",
"at",
"times",
"has",
"been",
"overweight",
"in",
"certain",
"sectors",
"(",
"financial",
"services",
"and",
"consumer",
"discretionary",
"sectors",
")",
"due",
"to",
"investments",
"made",
"by",
"the",
"Fund",
".",
"However",
"such",
"investments",
"are",
"not",
"considered",
"by",
"the",
"Fund",
"to",
"be",
"principal",
"strategies",
".",
"The",
"Registrant",
"believes",
"that",
"the",
"principal",
"investment",
"strategies",
"as",
"described",
"in",
"the",
"Prospectus",
"accurately",
"reflect",
"the",
"strategies",
"for",
"the",
"Fund",
".",
"However",
",",
"since",
"the",
"Fund",
"is",
"overweight",
"in",
"particular",
"sectors",
"the",
"Registrant",
"believes",
"that",
"it",
"is",
"a",
"risk",
"to",
"the",
"Fund",
".",
"Therefore",
",",
"the",
"Fund",
"has",
"added",
"a",
"principal",
"risk",
"to",
"reflect",
"this",
"matter",
".",
"The",
"principal",
"risk",
"will",
"be",
"revised",
"to",
"read",
"as",
"follows",
":",
"The",
"Fund",
"often",
"invests",
"a",
"significant",
"portion",
"of",
"its",
"assets",
"in",
"companies",
"within",
"the",
"financial",
"services",
"and",
"consumer",
"discretionary",
"sectors",
",",
"and",
"its",
"performance",
"may",
"suffer",
"if",
"these",
"sectors",
"underperform",
"the",
"overall",
"stock",
"market",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Principal",
"Risks",
"in",
"the",
"Prospectus",
",",
"please",
"confirm",
"to",
"the",
"Commission",
"that",
"all",
"the",
"principal",
"risks",
"of",
"the",
"Fund",
"are",
"set",
"forth",
"in",
"the",
"Principal",
"Risks",
"section",
".",
"Response",
":",
"The",
"Registrant",
"believes",
"that",
"all",
"principal",
"risks",
"have",
"been",
"currently",
"described",
"in",
"the",
"Prospectus",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Performance",
"in",
"the",
"Prospectus",
",",
"please",
"(",
"i",
")"
] |
17 | 106791 | [
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"the",
"Prospectus",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Performance",
"in",
"the",
"Prospectus",
",",
"please",
"(",
"i",
")",
"remove",
"the",
"parenthetical",
"(",
"before",
"taxes",
")",
"in",
"the",
"heading",
",",
"(",
"ii",
")",
"delete",
"the",
"second",
"sentence",
"The",
"Fund",
"s",
"past",
"performance",
"is",
"not",
"indicative",
"of",
"future",
"performance",
".",
"below",
"the",
"bar",
"charts",
",",
"(",
"iii",
")",
"move",
"the",
"text",
"from",
"footnote",
"(",
"b",
")",
"of",
"the",
"average",
"annual",
"total",
"return",
"table",
"into",
"the",
"table",
"and",
"delete",
"the",
"footnote",
"and",
"(",
"iv",
")",
"move",
"the",
"last",
"sentence",
"in",
"the",
"section",
"to",
"the",
"lead",
"in",
"paragraph",
".",
"Response",
":",
"The",
"changes",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Portfolio",
"Managers",
"in",
"the",
"Prospectus",
",",
"please",
"confirm",
"that",
"each",
"portfolio",
"manager",
"has",
"managed",
"the",
"Fund",
"since",
"the",
"time",
"period",
"indicated",
".",
"Response",
":",
"The",
"Registrant",
"confirms",
"that",
"each",
"Portfolio",
"Manager",
"has",
"managed",
"the",
"respective",
"Fund",
"for",
"the",
"time",
"periods",
"set",
"forth",
"in",
"the",
"Prospectus",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries",
"in",
"the",
"Prospectus",
",",
"please",
"revise",
"the",
"first",
"sentence",
"of",
"the",
"last",
"paragraph",
"to",
"change",
"financial",
"intermediary",
"compensation",
"to",
"payments",
"to",
"broker-dealers",
"and",
"other",
"financial",
"intermediaries",
".",
"In",
"addition",
",",
"please",
"delete",
"the",
"last",
"sentence",
"of",
"that",
"paragraph",
".",
"Response",
":",
"The",
"changes",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Fees",
"and",
"Expenses",
"with",
"respect",
"to",
"the",
"Ariel",
"Focus",
"Fund",
"in",
"the",
"Prospectus",
",",
"please",
"(",
"i",
")",
"change",
"Net",
"Expenses",
"to",
"Total",
"Annual",
"Fund",
"Operating",
"Expenses",
"After",
"Fee",
"Waiver",
"and/or",
"Expense",
"Reimbursement",
",",
"(",
"ii",
")",
"confirm",
"that",
"the",
"Adviser",
"does",
"not",
"recoup",
"amounts",
"waived",
"or",
"reimbursed",
",",
"and",
"(",
"iii",
")",
"in",
"the",
"footnote",
"to",
"the",
"fee",
"table",
"please",
"state",
"who",
"may",
"terminate",
"the",
"agreement",
"and",
"under",
"what",
"circumstances",
".",
"Lastly",
",",
"please",
"file",
"the",
"current",
"expense",
"limitation",
"agreement",
"as",
"an",
"exhibit",
"to",
"the",
"Registration",
"Statement",
".",
"Response",
":",
"The",
"change",
"from",
"Net",
"Expenses",
"to",
"Total",
"Annual",
"Fund",
"Operating",
"Expenses",
"After",
"Fee",
"Waiver",
"and/or",
"Expense",
"Reimbursement",
"will",
"be",
"made",
"as",
"requested",
".",
"The",
"Adviser",
"does",
"not",
"recoup",
"amounts",
"waived",
"or",
"reimbursed",
"from",
"a",
"previous",
"fiscal",
"year",
"under",
"the",
"expense",
"limitation",
"agreement",
".",
"The",
"following",
"disclosure",
"will",
"be",
"added",
"to",
"the",
"footnote",
"with",
"respect",
"to",
"termination",
"of",
"the",
"expense",
"limitation",
"agreement",
":",
"The",
"agreement",
"automatically",
"renews",
"for",
"additional",
"one-year",
"periods",
"if",
"not",
"terminated",
",",
"in",
"writing",
",",
"by",
"either",
"party",
"before",
"September",
"30th",
"of",
"each",
"year",
".",
"The",
"Registrant",
"filed",
"a",
"copy",
"of",
"the",
"Expense",
"Limitation",
"Agreement",
"with",
"Post",
"Effective",
"Amendment",
"No.",
"38",
"on",
"January",
"28",
",",
"2009",
"(",
"SEC",
"Accession",
"No.",
"Pursuant",
"to",
"its",
"terms",
",",
"the",
"Agreement",
"was",
"effective",
"until",
"September",
"30",
",",
"2010",
"and",
"will",
"automatically",
"renew",
"for",
"additional"
] |
17 | 107221 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Pursuant",
"to",
"its",
"terms",
",",
"the",
"Agreement",
"was",
"effective",
"until",
"September",
"30",
",",
"2010",
"and",
"will",
"automatically",
"renew",
"for",
"additional",
"one-year",
"periods",
"if",
"not",
"terminated",
",",
"in",
"writing",
",",
"by",
"either",
"party",
"before",
"September",
"30th",
"of",
"each",
"year",
".",
"Please",
"note",
"that",
"the",
"parties",
"have",
"extended",
"the",
"Expense",
"Limitation",
"Agreement",
"until",
"September",
"30",
",",
"2011",
",",
"as",
"referenced",
"above",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Example",
"with",
"respect",
"to",
"the",
"Ariel",
"Focus",
"Fund",
"in",
"the",
"Prospectus",
",",
"please",
"revise",
"the",
"lead",
"in",
"paragraph",
"to",
"note",
"that",
"there",
"is",
"a",
"fee",
"waiver",
"in",
"years",
"1",
"and",
"2",
".",
"Response",
":",
"The",
"change",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Principal",
"Risks",
"in",
"the",
"Prospectus",
",",
"the",
"fourth",
"bullet",
"point",
"states",
"that",
":",
"The",
"Fund",
"may",
"invest",
"up",
"to",
"20",
"%",
"of",
"its",
"respective",
"assets",
"in",
"securities",
"of",
"foreign",
"companies",
",",
"which",
"may",
"involve",
"risks",
"of",
"currency",
"fluctuation",
"and",
"adverse",
"developments",
"in",
"the",
"foreign",
"countries",
".",
"The",
"Principal",
"Investment",
"Strategy",
"does",
"not",
"provide",
"any",
"disclosure",
"with",
"respect",
"to",
"foreign",
"investments",
".",
"Please",
"revise",
"the",
"Principal",
"Investment",
"Strategy",
"to",
"include",
"such",
"disclosure",
".",
"Response",
":",
"The",
"Fund",
"does",
"not",
"consider",
"investments",
"in",
"foreign",
"securities",
"to",
"be",
"a",
"principal",
"strategy",
"of",
"the",
"Fund",
"since",
"the",
"Funds",
"investments",
"in",
"foreign",
"securities",
"may",
"be",
"made",
"through",
"the",
"purchase",
"of",
"individual",
"securities",
"on",
"recognized",
"foreign",
"exchanges",
"and",
"developed",
"over-the-counter",
"markets",
",",
"or",
"through",
"American",
"Depositary",
"Receipts",
"(",
"ADR",
")",
"or",
"Global",
"Depositary",
"Receipts",
"(",
"GDR",
")",
"covering",
"such",
"securities",
".",
"The",
"Fund",
"expects",
"to",
"invest",
"in",
"foreign",
"securities",
"mainly",
"through",
"ADRs",
"or",
"GDRs",
".",
"Therefore",
",",
"the",
"Registrant",
"believes",
"that",
"the",
"disclosure",
"does",
"not",
"have",
"to",
"be",
"amended",
".",
"If",
"this",
"practice",
"were",
"to",
"change",
",",
"the",
"Registrant",
"will",
"revise",
"the",
"disclosure",
"accordingly",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Fund",
"Summaries-Purchase",
"and",
"Sale",
"of",
"Fund",
"Shares",
"in",
"the",
"Prospectus",
",",
"please",
"delete",
"the",
"third",
"sentence",
"of",
"the",
"first",
"paragraph",
".",
"In",
"addition",
",",
"please",
"delete",
"the",
"footnote",
"to",
"the",
"table",
"in",
"this",
"section",
".",
"Response",
":",
"The",
"changes",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Value",
"Investing",
"defined-A",
"long-term",
"view",
"in",
"the",
"Prospectus",
",",
"the",
"second",
"sentence",
"of",
"the",
"third",
"paragraph",
"states",
"that",
":",
"The",
"Funds",
"believe",
"a",
"stock",
"is",
"fully",
"valued",
"when",
"it",
"is",
"trading",
"at",
"a",
"price-to-earnings",
"ratio",
"of",
"more",
"than",
"20",
"times",
"forward",
"12",
"month",
"earnings",
"and/or",
"it",
"is",
"no",
"longer",
"trading",
"at",
"a",
"discount",
"to",
"our",
"private",
"market",
"value",
"calculation",
".",
"Please",
"clarify",
"if",
"the",
"Fund",
"will",
"always",
"sell",
"a",
"stock",
"based",
"on",
"this",
"criterion",
"or",
"is",
"this",
"just",
"one",
"reason",
"for",
"selling",
"a",
"stock",
".",
"In",
"addition",
",",
"please",
"consider",
"including",
"this",
"in",
"the",
"Fund",
"Summaries",
"as",
"sell",
"discipline",
"for",
"the",
"Fund",
".",
"Response"
] |
17 | 107661 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
".",
"In",
"addition",
",",
"please",
"consider",
"including",
"this",
"in",
"the",
"Fund",
"Summaries",
"as",
"sell",
"discipline",
"for",
"the",
"Fund",
".",
"Response",
":",
"The",
"Registrant",
"will",
"revise",
"the",
"disclosure",
"to",
"read",
"as",
"follows",
":",
"In",
"determining",
"whether",
"a",
"stock",
"is",
"fully",
"valued",
",",
"the",
"Funds",
"look",
"at",
"the",
"price-to-earnings",
"ratio",
"based",
"on",
"future",
"earnings",
",",
"and",
"whether",
"it",
"trades",
"at",
"a",
"discount",
"to",
"our",
"private",
"market",
"value",
"calculation",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Managing",
"Your",
"Ariel",
"Account-Regarding",
"Sales",
"of",
"Shares",
"in",
"the",
"Funds",
"in",
"the",
"Prospectus",
",",
"please",
"define",
"good",
"form",
".",
"Response",
":",
"Good",
"form",
"means",
"that",
"the",
"Fund",
"s",
"transfer",
"agent",
"has",
"all",
"information",
"and",
"documentation",
"it",
"deems",
"necessary",
"to",
"effect",
"your",
"order",
".",
"The",
"sentence",
"has",
"been",
"added",
"to",
"the",
"Prospectus",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Managing",
"Your",
"Ariel",
"Account-Calculating",
"the",
"Funds",
"share",
"prices",
"in",
"the",
"Prospectus",
",",
"the",
"fourth",
"paragraph",
"discussed",
"foreign",
"securities",
".",
"Please",
"provide",
"disclosure",
"required",
"by",
"Instruction",
"2",
"to",
"Item",
"11",
"(",
"a",
")",
"(",
"3",
")",
"of",
"Form",
"N-1A",
".",
"If",
"the",
"Fund",
"has",
"portfolio",
"securities",
"that",
"are",
"primarily",
"listed",
"on",
"foreign",
"exchanges",
"that",
"trade",
"on",
"weekends",
"or",
"other",
"days",
"when",
"the",
"Fund",
"does",
"not",
"price",
"its",
"shares",
",",
"disclose",
"that",
"the",
"net",
"asset",
"value",
"of",
"the",
"Fund",
"s",
"shares",
"may",
"change",
"on",
"days",
"when",
"shareholders",
"will",
"not",
"be",
"able",
"to",
"purchase",
"or",
"redeem",
"the",
"Fund",
"s",
"shares",
".",
"Response",
":",
"As",
"noted",
"above",
",",
"the",
"Funds",
"investments",
"in",
"foreign",
"securities",
"will",
"be",
"in",
"ADRs",
"and",
"GDRs",
".",
"Therefore",
",",
"the",
"Registrant",
"believes",
"that",
"the",
"disclosure",
"does",
"not",
"have",
"to",
"be",
"amended",
".",
"If",
"this",
"practice",
"were",
"to",
"change",
",",
"the",
"Registrant",
"will",
"revise",
"the",
"disclosure",
"accordingly",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Managing",
"Your",
"Ariel",
"Account-Determining",
"the",
"Price",
"of",
"Your",
"Transaction",
"in",
"the",
"Prospectus",
",",
"the",
"third",
"paragraph",
"discusses",
"an",
"intermediary",
"receiving",
"your",
"request",
".",
"Please",
"confirm",
"that",
"the",
"intermediary",
"is",
"not",
"acting",
"as",
"an",
"agent",
"of",
"the",
"Fund",
".",
"Response",
":",
"In",
"certain",
"cases",
",",
"the",
"Intermediary",
"may",
"act",
"as",
"an",
"agent",
"of",
"the",
"Fund",
".",
"In",
"these",
"instances",
",",
"the",
"Intermediary",
"agrees",
"to",
"comply",
"with",
"the",
"Funds",
"pricing",
"policies",
".",
"As",
"noted",
"in",
"the",
"Prospectus",
",",
"if",
"you",
"are",
"purchasing",
",",
"selling",
"or",
"exchanging",
"Fund",
"shares",
"through",
"an",
"Intermediary",
",",
"your",
"NAV",
"is",
"dependent",
"upon",
"when",
"your",
"Intermediary",
"receives",
"your",
"request",
"and",
"sends",
"it",
"to",
"the",
"Funds",
".",
"To",
"receive",
"the",
"closing",
"price",
"for",
"the",
"day",
"you",
"place",
"your",
"order",
",",
"your",
"Intermediary",
"must",
"receive",
"your",
"order",
"at",
"or",
"before",
"NYSE",
"Closing",
"Time",
"and",
"promptly",
"transmit",
"the",
"order",
"to",
"the",
"Funds",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Managing",
"Your",
"Ariel",
"Account-Rule",
"12b-1",
"Fees",
"in",
"the",
"Prospectus",
",",
"please",
"move",
"this",
"section",
"so",
"that",
"it",
"follows",
"the",
"section",
"entitled",
"Payments",
"to",
"Brokers",
",",
"Dealers",
"and",
"Other",
"Financial",
"Intermediaries",
".",
"Response",
":",
"The"
] |
17 | 108111 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"so",
"that",
"it",
"follows",
"the",
"section",
"entitled",
"Payments",
"to",
"Brokers",
",",
"Dealers",
"and",
"Other",
"Financial",
"Intermediaries",
".",
"Response",
":",
"The",
"change",
"will",
"be",
"made",
"as",
"requested",
".",
"SEC",
"Comment",
":",
"In",
"the",
"section",
"entitled",
"Investment",
"Restrictions",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
",",
"restriction",
"(",
"4",
")",
"describes",
"further",
"the",
"industry",
"concentration",
"policy",
".",
"The",
"Funds",
"use",
"a",
"different",
"classification",
"system",
"for",
"purposes",
"of",
"their",
"financial",
"statements",
".",
"Please",
"describe",
"the",
"classification",
"system",
"and",
"provide",
"an",
"explanation",
"as",
"to",
"why",
"the",
"Funds",
"use",
"a",
"different",
"system",
".",
"Response",
":",
"For",
"presentation",
"purposes",
"in",
"the",
"Funds",
"financial",
"statements",
",",
"and",
"to",
"be",
"consistent",
"with",
"the",
"industry",
"categories",
"displayed",
"in",
"the",
"Composition",
"of",
"Equity",
"Holdings",
"table",
",",
"the",
"Funds",
"categorize",
"portfolio",
"holdings",
"using",
"the",
"Russell",
"Global",
"Sectors",
"Classification",
"Methodology",
".",
"SEC",
"Comment",
":",
"In",
"Lending",
"of",
"Portfolio",
"Securities",
"in",
"the",
"section",
"entitled",
"Investment",
"Strategies",
"and",
"Risks",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
",",
"please",
"(",
"i",
")",
"clarify",
"that",
"the",
"Board",
"may",
"recall",
"securities",
"if",
"a",
"material",
"matter",
"is",
"proposed",
"by",
"an",
"issuer",
"of",
"a",
"security",
",",
"(",
"ii",
")",
"describe",
"the",
"risk",
"of",
"loss",
"and",
"(",
"iii",
")",
"describe",
"fee",
"splits",
"with",
"a",
"lending",
"agent",
",",
"if",
"any",
".",
"Response",
":",
"The",
"first",
"paragraph",
"of",
"the",
"section",
"entitled",
"Lending",
"of",
"Portfolio",
"Securities",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
"notes",
"that",
"the",
"Trust",
"will",
"exercise",
"its",
"right",
"to",
"terminate",
"a",
"securities",
"loan",
"in",
"order",
"to",
"preserve",
"its",
"right",
"to",
"vote",
"upon",
"matters",
"of",
"importance",
"affecting",
"holders",
"of",
"the",
"securities",
".",
"As",
"such",
",",
"the",
"Board",
"of",
"the",
"Trust",
"has",
"the",
"ability",
"to",
"recall",
"securities",
"if",
"a",
"material",
"matter",
"were",
"to",
"occur",
".",
"The",
"third",
"paragraph",
"of",
"the",
"section",
"entitled",
"Lending",
"of",
"Portfolio",
"Securities",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
"describes",
"the",
"risk",
"of",
"loss",
".",
"It",
"states",
"that",
":",
"Securities",
"loans",
"may",
"be",
"made",
"to",
"broker-dealers",
"and",
"other",
"financial",
"institutions",
"to",
"facilitate",
"their",
"deliveries",
"of",
"such",
"securities",
".",
"As",
"with",
"any",
"extension",
"of",
"credit",
",",
"there",
"may",
"be",
"risks",
"of",
"delay",
"in",
"recovery",
"and",
"possibly",
"loss",
"of",
"rights",
"in",
"the",
"loaned",
"securities",
"should",
"the",
"borrower",
"of",
"the",
"loaned",
"securities",
"fail",
"financially",
".",
"However",
",",
"loans",
"will",
"be",
"made",
"only",
"to",
"those",
"firms",
"that",
"the",
"Adviser",
"deems",
"creditworthy",
"and",
"only",
"on",
"such",
"terms",
"as",
"it",
"believes",
"should",
"compensate",
"for",
"such",
"risk",
".",
"While",
"the",
"Funds",
"have",
"the",
"ability",
"to",
"lend",
"portfolio",
"securities",
",",
"currently",
"none",
"of",
"the",
"Funds",
"are",
"lending",
"portfolio",
"securities",
"and",
"no",
"securities",
"lending",
"agent",
"has",
"been",
"appointed",
".",
"If",
"this",
"practice",
"were",
"to",
"change",
",",
"the",
"Registrant",
"will",
"revise",
"the",
"disclosure",
"accordingly",
".",
"SEC",
"Comment",
":",
"In",
"Repurchase",
"Agreements",
"in",
"the",
"section",
"entitled",
"Investment",
"Strategies",
"and",
"Risks",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
",",
"please",
"provide",
"a",
"statement",
"that",
"a",
"repurchase",
"agreement",
"is",
"a",
"loan",
".",
"Response",
":",
"The",
"Statement",
"of",
"Additional",
"Information",
"states",
"that",
"Repurchase",
"agreements",
"are",
"short-term",
"money",
"market",
"investment",
"securities",
"transactions",
",",
"designed",
"to",
"generate",
"current",
"income",
".",
"The",
"Registrant",
"believes",
"that",
"the",
"disclosure",
"accurately",
"reflects",
"the"
] |
17 | 108581 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
3,
4,
4,
4,
4,
4,
4,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"market",
"investment",
"securities",
"transactions",
",",
"designed",
"to",
"generate",
"current",
"income",
".",
"The",
"Registrant",
"believes",
"that",
"the",
"disclosure",
"accurately",
"reflects",
"the",
"definition",
"of",
"a",
"repurchase",
"agreement",
".",
"SEC",
"Comment",
":",
"In",
"Restricted",
"and",
"Illiquid",
"Securities",
"in",
"the",
"section",
"entitled",
"Investment",
"Strategies",
"and",
"Risks",
"in",
"the",
"Statement",
"of",
"Additional",
"Information",
",",
"please",
"describe",
"the",
"steps",
"that",
"a",
"Fund",
"would",
"take",
"if",
"the",
"Fund",
"exceeds",
"the",
"15",
"%",
"investment",
"limitation",
"for",
"illiquid",
"securities",
".",
"Response",
":",
"If",
"at",
"any",
"time",
"more",
"than",
"15",
"%",
"of",
"the",
"Fund",
"s",
"net",
"assets",
"are",
"illiquid",
"due",
"to",
"market",
"action",
"or",
"Fund",
"sales",
"of",
"liquid",
"securities",
",",
"the",
"Registrant",
"will",
"seek",
"to",
"dispose",
"of",
"illiquid",
"assets",
"in",
"excess",
"of",
"15",
"%",
"with",
"all",
"deliberate",
"speed",
".",
"This",
"sentence",
"has",
"been",
"added",
"to",
"the",
"Statement",
"of",
"Additional",
"Information",
".",
"Please",
"call",
"me",
"at",
"(",
"617",
")",
"662-3969",
"if",
"you",
"have",
"any",
"further",
"questions",
".",
"You",
"requested",
"that",
"the",
"Registrant",
"make",
"certain",
"representations",
"concerning",
"the",
"Registration",
"Statement",
"on",
"Form",
"N-1A",
"and",
"the",
"response",
"being",
"made",
"to",
"the",
"comments",
"received",
".",
"These",
"representations",
"are",
"included",
"as",
"an",
"exhibit",
"to",
"this",
"letter",
".",
"Very",
"truly",
"yours",
",",
"Dominic",
"Minore",
"Securities",
"and",
"Exchange",
"Commission",
"Investment",
"Company",
"Division",
"100",
"F.",
"Street",
",",
"N.E.",
"In",
"connection",
"with",
"a",
"response",
"being",
"made",
"on",
"behalf",
"of",
"the",
"Registrant",
"to",
"comments",
"you",
"provided",
"with",
"respect",
"to",
"Post-Effective",
"Amendment",
"No.",
"39",
"to",
"the",
"Registrant",
"s",
"registration",
"statement",
"filed",
"on",
"Form",
"N-1A",
"for",
"the",
"Registrant",
"on",
"November",
"20",
",",
"2009",
"(",
"Registration",
"Statement",
")",
",",
"the",
"Registrant",
"hereby",
"acknowledges",
"that",
":",
"the",
"Registrant",
"may",
"not",
"assert",
"SEC",
"Staff",
"comments",
"as",
"a",
"defense",
"in",
"any",
"proceeding",
"initiated",
"by",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"or",
"any",
"person",
"under",
"the",
"federal",
"securities",
"laws",
".",
"We",
"hope",
"that",
"the",
"foregoing",
"is",
"responsive",
"to",
"your",
"request",
"made",
"on",
"January",
"14",
",",
"2010",
".",
"Please",
"do",
"not",
"hesitate",
"to",
"contact",
"the",
"undersigned",
"at",
"(",
"312",
")",
"612-2759",
"if",
"you",
"have",
"any",
"questions",
"concerning",
"the",
"foregoing",
"."
] |
18 | 108903 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"The",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"(",
"the",
"Plan",
")",
"is",
"subject",
"to",
"ERISA",
"and",
"elects",
"to",
"file",
"Plan",
"financial",
"statements",
"and",
"schedules",
"prepared",
"in",
"accordance",
"with",
"the",
"financial",
"reporting",
"requirements",
"of",
"ERISA",
".",
"Furnished",
"herewith",
"are",
"the",
"financial",
"statements",
"and",
"schedules",
"of",
"the",
"Plan",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"2009",
"and",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
".",
"Audit",
"and",
"Finance",
"Committee",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"Olympia",
",",
"Washington",
"We",
"have",
"audited",
"the",
"accompanying",
"statements",
"of",
"net",
"assets",
"available",
"for",
"benefits",
"of",
"the",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"(",
"the",
"Plan",
")",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"2009",
",",
"and",
"the",
"related",
"statement",
"of",
"changes",
"in",
"net",
"assets",
"available",
"for",
"benefits",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
".",
"These",
"financial",
"statements",
"are",
"the",
"responsibility",
"of",
"the",
"Plan",
"s",
"management",
".",
"Our",
"responsibility",
"is",
"to",
"express",
"an",
"opinion",
"on",
"these",
"financial",
"statements",
"based",
"on",
"our",
"audits",
".",
"We",
"conducted",
"our",
"audits",
"in",
"accordance",
"with",
"the",
"standards",
"of",
"the",
"Public",
"Company",
"Accounting",
"Oversight",
"Board",
"(",
"United",
"States",
")",
".",
"Those",
"standards",
"require",
"that",
"we",
"plan",
"and",
"perform",
"the",
"audit",
"to",
"obtain",
"reasonable",
"assurance",
"about",
"whether",
"the",
"financial",
"statements",
"are",
"free",
"of",
"material",
"misstatement",
".",
"An",
"audit",
"includes",
"examining",
"on",
"a",
"test",
"basis",
",",
"evidence",
"supporting",
"the",
"amounts",
"and",
"disclosures",
"in",
"the",
"financial",
"statements",
".",
"An",
"audit",
"also",
"includes",
"assessing",
"the",
"accounting",
"principles",
"used",
"and",
"significant",
"estimates",
"made",
"by",
"management",
",",
"as",
"well",
"as",
"evaluating",
"the",
"overall",
"financial",
"statement",
"presentation",
".",
"We",
"believe",
"that",
"our",
"audits",
"provide",
"a",
"reasonable",
"basis",
"for",
"our",
"opinion",
".",
"In",
"our",
"opinion",
",",
"the",
"financial",
"statements",
"referred",
"to",
"above",
"present",
"fairly",
",",
"in",
"all",
"material",
"respects",
",",
"the",
"net",
"assets",
"available",
"for",
"benefits",
"of",
"the",
"Plan",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"2009",
",",
"and",
"the",
"changes",
"in",
"net",
"assets",
"available",
"for",
"benefits",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"in",
"conformity",
"with",
"U.S.",
"generally",
"accepted",
"accounting",
"principles",
".",
"Our",
"audits",
"were",
"performed",
"for",
"the",
"purpose",
"of",
"forming",
"an",
"opinion",
"on",
"the",
"basic",
"financial",
"statements",
"taken",
"as",
"a",
"whole",
".",
"The",
"supplemental",
"schedules",
"H",
",",
"line",
"4i",
"Schedule",
"of",
"Assets",
"(",
"Held",
"at",
"End",
"of",
"Year",
")",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"line",
"4aSchedule",
"of",
"Delinquent",
"Participant",
"Contributions",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"are",
"presented",
"for",
"the",
"purpose",
"of",
"additional",
"analysis",
"and",
"are",
"not",
"a",
"required",
"part",
"of",
"the",
"basic",
"financial",
"statements",
"but",
"are",
"supplementary",
"information",
"required",
"by",
"the",
"Department",
"of",
"Labor",
"s",
"Rules",
"and",
"Regulations",
"for",
"Reporting",
"and",
"Disclosure",
"under",
"the",
"Employee",
"Retirement",
"Income",
"Security",
"Act",
"of",
"1974",
".",
"The",
"supplemental",
"schedules",
"are",
"the",
"responsibility",
"of",
"the",
"Plan",
"s",
"management",
".",
"The",
"supplemental",
"schedules",
"have",
"been",
"subjected",
"to",
"the",
"auditing",
"procedures",
"applied",
"in",
"our",
"audits",
"of",
"the",
"basic",
"financial",
"statements",
"and",
",",
"in",
"our",
"opinion",
",",
"are",
"fairly",
"stated",
"in",
"all",
"material"
] |
18 | 109381 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"in",
"our",
"audits",
"of",
"the",
"basic",
"financial",
"statements",
"and",
",",
"in",
"our",
"opinion",
",",
"are",
"fairly",
"stated",
"in",
"all",
"material",
"respects",
"in",
"relation",
"to",
"the",
"basic",
"financial",
"statements",
"taken",
"as",
"a",
"whole",
".",
"See",
"accompanying",
"notes",
"to",
"financial",
"statements",
".",
"See",
"accompanying",
"notes",
"to",
"financial",
"statements",
".",
"The",
"following",
"description",
"of",
"the",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"(",
"the",
"Plan",
")",
"provides",
"only",
"general",
"information",
".",
"Participants",
"should",
"refer",
"to",
"the",
"Plan",
"agreement",
"for",
"a",
"more",
"complete",
"description",
"of",
"the",
"Plan",
"s",
"provisions",
".",
"Heritage",
"Financial",
"Corporation",
"(",
"the",
"Company",
")",
"is",
"a",
"bank",
"holding",
"company",
"with",
"headquarters",
"in",
"Olympia",
",",
"Washington",
".",
"The",
"Plan",
"is",
"a",
"qualified",
"defined",
"contribution",
"plan",
"established",
"by",
"the",
"Company",
"under",
"the",
"provisions",
"of",
"Section",
"401",
"(",
"a",
")",
",",
"Section",
"401",
"(",
"k",
")",
"and",
"Section",
"4975",
"(",
"e",
")",
"(",
"7",
")",
"of",
"the",
"Internal",
"Revenue",
"Code",
"(",
"IRC",
")",
"with",
"salary",
"reduction",
"and",
"employer",
"stock",
"ownership",
"features",
"for",
"the",
"benefit",
"of",
"eligible",
"employees",
"of",
"the",
"Company",
".",
"The",
"Plan",
"is",
"subject",
"to",
"the",
"provisions",
"of",
"the",
"Employee",
"Retirement",
"Income",
"Security",
"Act",
"of",
"1974",
"(",
"ERISA",
")",
",",
"as",
"amended",
".",
"The",
"Plan",
"is",
"administered",
"by",
"the",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"(",
"KSOP",
")",
"Committee",
",",
"which",
"consists",
"of",
"certain",
"officers",
"and",
"employees",
"of",
"the",
"Company",
".",
"Wilmington",
"Trust",
"Company",
"serves",
"as",
"the",
"Custodian",
",",
"certain",
"officers",
"of",
"the",
"Company",
"serve",
"as",
"Trustees",
"of",
"the",
"Plan",
"and",
"RBC",
"Wealth",
"Management",
"serves",
"as",
"the",
"investment",
"advisor",
".",
"Employees",
"are",
"eligible",
"to",
"participate",
"in",
"the",
"Plan",
"on",
"the",
"first",
"of",
"the",
"month",
"coincident",
"with",
"or",
"following",
"thirty",
"days",
"of",
"service",
"and",
"attaining",
"age",
"eighteen",
".",
"Participants",
"may",
"elect",
"to",
"contribute",
"up",
"to",
"the",
"lesser",
"of",
"100",
"%",
"of",
"their",
"eligible",
"compensation",
"or",
"to",
"certain",
"limitations",
"under",
"the",
"IRC",
".",
"These",
"limitations",
"include",
"a",
"dollar",
"limitation",
"(",
"$",
"16,500",
"for",
"2010",
"and",
"2009",
")",
"and",
"discrimination",
"testing",
"limitations",
".",
"Additionally",
",",
"participants",
"over",
"age",
"50",
"may",
"make",
"catch-up",
"contributions",
"up",
"to",
"the",
"applicable",
"dollar",
"limitation",
"(",
"$",
"5,500",
"for",
"2010",
"and",
"2009",
")",
".",
"Participants",
"may",
"also",
"contribute",
"amounts",
"representing",
"distributions",
"from",
"other",
"qualified",
"plans",
".",
"The",
"Company",
"makes",
"contributions",
"to",
"participant",
"accounts",
"as",
"follows",
":",
"During",
"2010",
",",
"the",
"Company",
"s",
"discretionary",
"profit",
"sharing",
"contribution",
"totaled",
"1",
"%",
"of",
"eligible",
"compensation",
".",
"The",
"following",
"provisions",
"apply",
"to",
"contributions",
":",
"During",
"2010",
",",
"the",
"Company",
"met",
"the",
"minimum",
"funding",
"requirements",
"as",
"defined",
"by",
"ERISA",
".",
"Each",
"participant",
"s",
"account",
"is",
"credited",
"with",
"the",
"participant",
"s",
"elective",
"(",
"401",
"(",
"k",
")",
")",
"contributions",
"and",
"allocations",
"of",
"the",
"Company",
"s",
"contributions",
"(",
"including",
"Company",
"stock",
"attributable",
"to",
"repayments",
"of",
"the",
"ESOP",
"loan",
")",
"and",
"Plan",
"earnings",
"net",
"of",
"expenses",
".",
"The",
"benefit",
"to",
"which",
"a",
"participant",
"is",
"entitled",
"is",
"the",
"benefit",
"that",
"can",
"be",
"provided",
"from",
"the",
"participant",
"s",
"vested",
"account",
".",
"Participant",
"accounts",
"are",
"valued",
"daily",
"based",
"on",
"quoted",
"market",
"prices",
".",
"Participants",
"are"
] |
18 | 109851 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"from",
"the",
"participant",
"s",
"vested",
"account",
".",
"Participant",
"accounts",
"are",
"valued",
"daily",
"based",
"on",
"quoted",
"market",
"prices",
".",
"Participants",
"are",
"always",
"vested",
"in",
"their",
"401",
"(",
"k",
")",
"contributions",
"plus",
"earnings",
"thereon",
".",
"Vesting",
"in",
"the",
"Company",
"s",
"contributions",
"plus",
"earnings",
"thereon",
"is",
"based",
"on",
"years",
"of",
"service",
".",
"A",
"participant",
"s",
"matching",
"contribution",
"and",
"all",
"other",
"employer",
"contributions",
"are",
"100",
"%",
"vested",
"after",
"six",
"years",
"of",
"service",
"(",
"or",
"upon",
"death",
"or",
"disability",
"while",
"employed",
",",
"or",
"retirement",
"on",
"or",
"after",
"normal",
"retirement",
"age",
")",
",",
"with",
"20",
"%",
"vesting",
"at",
"two",
"years",
"of",
"service",
"increasing",
"by",
"an",
"additional",
"20",
"%",
"with",
"each",
"additional",
"year",
"of",
"service",
".",
"The",
"Plan",
"s",
"ESOP",
"component",
"is",
"designed",
"to",
"invest",
"primarily",
"in",
"Company",
"common",
"stock",
"in",
"order",
"to",
"comply",
"with",
"Section",
"4975",
"(",
"e",
")",
"(",
"7",
")",
"of",
"the",
"IRC",
"and",
"Income",
"Tax",
"Regulation",
"54.4975-11",
".",
"Upon",
"enrollment",
"in",
"the",
"Plan",
",",
"a",
"participant",
"may",
"direct",
"his",
"or",
"her",
"401",
"(",
"k",
")",
"contributions",
"in",
"1",
"%",
"increments",
"among",
"eleven",
"registered",
"investment",
"company",
"funds",
",",
"one",
"money",
"market",
"fund",
",",
"and",
"the",
"Company",
"stock",
"fund",
".",
"Participants",
"also",
"have",
"the",
"option",
"to",
"invest",
"in",
"four",
"different",
"managed",
"portfolio",
"strategies",
".",
"Participants",
"may",
"change",
"their",
"investment",
"elections",
"and",
"reallocate",
"their",
"investments",
"on",
"a",
"daily",
"basis",
"(",
"including",
"with",
"respect",
"to",
"Company",
"stock",
")",
".",
"Contributions",
"may",
"be",
"temporarily",
"held",
"as",
"cash",
"balances",
"pending",
"the",
"execution",
"of",
"the",
"investment",
"according",
"to",
"the",
"participant",
"s",
"direction",
".",
"No",
"distributions",
"from",
"the",
"Plan",
"may",
"be",
"made",
"until",
"a",
"participant",
"retires",
",",
"dies",
"(",
"in",
"which",
"case",
",",
"payment",
"shall",
"be",
"made",
"to",
"his",
"or",
"her",
"beneficiary",
"or",
",",
"if",
"none",
",",
"to",
"his",
"or",
"her",
"legal",
"representatives",
")",
",",
"becomes",
"disabled",
"or",
"otherwise",
"terminates",
"employment",
"with",
"the",
"Company",
".",
"Participants",
"aged",
"59",
"or",
"older",
"are",
"eligible",
"for",
"in-service",
"distributions",
".",
"However",
",",
"the",
"participant",
"has",
"the",
"right",
"to",
"defer",
"receipt",
"of",
"his",
"Plan",
"accounts",
"until",
"he",
"or",
"she",
"attains",
"her",
"normal",
"retirement",
"age",
"(",
"age",
"65",
")",
".",
"Distributions",
"are",
"made",
"in",
"cash",
",",
"Company",
"stock",
",",
"or",
"both",
",",
"at",
"the",
"election",
"of",
"the",
"participant",
",",
"subject",
"to",
"the",
"terms",
"of",
"the",
"Plan",
".",
"Benefit",
"distributions",
"are",
"based",
"on",
"the",
"participant",
"s",
"vested",
"account",
"balance",
"and",
"may",
"be",
"distributed",
"in",
"a",
"lump",
"sum",
".",
"If",
"a",
"participant",
"s",
"vested",
"account",
"balances",
"exceed",
"$",
"1,000",
",",
"a",
"participant",
"may",
"elect",
"to",
"have",
"the",
"vested",
"accounts",
"distributed",
"in",
"installments",
"over",
"a",
"period",
"of",
"not",
"more",
"than",
"the",
"participant",
"s",
"life",
"expectancy",
",",
"or",
"through",
"the",
"purchase",
"of",
"an",
"annuity",
".",
"In",
"the",
"case",
"of",
"a",
"married",
"participant",
",",
"certain",
"accounts",
"from",
"a",
"previously",
"merged",
"plan",
"must",
"be",
"distributed",
"in",
"the",
"form",
"of",
"a",
"joint",
"and",
"survivor",
"annuity",
"with",
"the",
"participant",
"s",
"spouse",
"as",
"the",
"joint",
"annuitant",
",",
"unless",
"waived",
"by",
"the",
"participant",
"and",
"consented",
"to",
"by",
"the",
"participant",
"s",
"spouse",
".",
"Under",
"certain",
"conditions",
",",
"participants",
",",
"while",
"still",
"employed",
"by",
"the",
"Company",
",",
"are",
"permitted"
] |
18 | 110321 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"the",
"participant",
"s",
"spouse",
".",
"Under",
"certain",
"conditions",
",",
"participants",
",",
"while",
"still",
"employed",
"by",
"the",
"Company",
",",
"are",
"permitted",
"to",
"withdraw",
"in",
"a",
"single",
"sum",
",",
"the",
"employee",
"contribution",
"portion",
"of",
"their",
"account",
"balance",
"on",
"account",
"of",
"hardship",
"as",
"defined",
"in",
"IRS",
"regulations",
".",
"If",
"a",
"hardship",
"withdrawal",
"is",
"made",
",",
"a",
"participant",
"s",
"right",
"to",
"make",
"401",
"(",
"k",
")",
"contributions",
"to",
"the",
"Plan",
"will",
"be",
"suspended",
"for",
"six",
"months",
"after",
"the",
"receipt",
"of",
"the",
"hardship",
"withdrawal",
".",
"This",
"will",
"affect",
"the",
"participant",
"s",
"right",
"to",
"receive",
"matching",
"contributions",
"but",
"not",
"other",
"Company",
"contributions",
".",
"In",
"addition",
",",
"participants",
",",
"while",
"still",
"employed",
"by",
"the",
"Company",
",",
"are",
"permitted",
"to",
"withdraw",
"all",
"or",
"a",
"portion",
"of",
"their",
"employee",
"account",
"balance",
"after",
"age",
"59",
".",
"Rollover",
"accounts",
"may",
"be",
"withdrawn",
",",
"all",
"or",
"part",
",",
"once",
"during",
"each",
"Plan",
"Year",
"regardless",
"of",
"the",
"participant",
"s",
"age",
".",
"The",
"Plan",
"has",
"the",
"right",
"to",
"immediately",
"distribute",
"participant",
"accounts",
"upon",
"termination",
"of",
"service",
"for",
"participants",
"with",
"balances",
"not",
"exceeding",
"$",
"1,000",
",",
"as",
"a",
"lump",
"sum",
"distribution",
".",
"Participants",
"may",
"diversify",
"their",
"employer",
"contributions",
"daily",
"among",
"all",
"of",
"the",
"investment",
"options",
"in",
"the",
"Plan",
"from",
"time",
"to",
"time",
",",
"including",
"the",
"Company",
"stock",
"fund",
".",
"No",
"participant",
"shall",
"have",
"any",
"voting",
"or",
"dividend",
"rights",
"or",
"other",
"rights",
"of",
"a",
"stockholder",
"prior",
"to",
"the",
"time",
"that",
"shares",
"are",
"allocated",
"to",
"the",
"participant",
".",
"Each",
"participant",
"is",
"entitled",
"to",
"exercise",
"voting",
"rights",
"attributable",
"to",
"the",
"shares",
"of",
"Company",
"stock",
"allocated",
"to",
"his",
"or",
"her",
"account",
"and",
"is",
"notified",
"by",
"the",
"trustee",
"prior",
"to",
"the",
"time",
"that",
"such",
"rights",
"are",
"to",
"be",
"exercised",
".",
"Forfeitures",
"may",
"be",
"used",
"to",
"pay",
"reasonable",
"and",
"permitted",
"administrative",
"expenses",
",",
"with",
"the",
"remainder",
"used",
"to",
"reduce",
"the",
"Company",
"s",
"employer",
"contribution",
"obligation",
".",
"Forfeitures",
"used",
"to",
"reduce",
"employer",
"contributions",
"during",
"2010",
"were",
"approximately",
"$",
"14,000",
".",
"Participants",
"may",
"borrow",
",",
"upon",
"written",
"application",
",",
"any",
"amount",
"provided",
"that",
"the",
"aggregate",
"amount",
"of",
"all",
"outstanding",
"notes",
"from",
"the",
"participant",
"to",
"the",
"Plan",
",",
"taking",
"into",
"account",
"notes",
"payable",
"to",
"any",
"other",
"qualified",
"plan",
"maintained",
"by",
"the",
"employer",
",",
"shall",
"not",
"exceed",
"the",
"lesser",
"of",
"$",
"50,000",
"or",
"50",
"%",
"of",
"the",
"participant",
"s",
"vested",
"account",
"balance",
".",
"Note",
"terms",
"shall",
"not",
"exceed",
"five",
"years",
",",
"except",
"for",
"the",
"purchase",
"of",
"a",
"primary",
"residence",
".",
"The",
"notes",
"are",
"collateralized",
"by",
"the",
"balance",
"in",
"the",
"participant",
"s",
"account",
"and",
"bear",
"interest",
"at",
"a",
"rate",
"equal",
"to",
"the",
"then",
"current",
"prime",
"rate",
".",
"Principal",
"and",
"interest",
"is",
"paid",
"ratably",
"semi-monthly",
"through",
"payroll",
"deductions",
".",
"The",
"interest",
"rate",
"on",
"outstanding",
"notes",
"as",
"of",
"December",
"31",
",",
"2010",
"ranged",
"from",
"3.25",
"%",
"to",
"4.00",
"%",
"and",
"the",
"notes",
"mature",
"through",
"September",
"2014",
".",
"Administrative",
"expenses",
"including",
"trust",
",",
"recordkeeping",
",",
"audit",
",",
"and",
"investment",
"fees",
"are",
"paid",
"by",
"the",
"Plan",
".",
"The",
"Company",
"may",
"also",
"pay",
"administrative",
"expenses",
".",
"The",
"accompanying",
"financial",
"statements",
"have",
"been",
"prepared",
"under",
"the",
"accrual",
"method",
"of",
"accounting",
".",
"The"
] |
18 | 110791 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
6,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0
] | [
"also",
"pay",
"administrative",
"expenses",
".",
"The",
"accompanying",
"financial",
"statements",
"have",
"been",
"prepared",
"under",
"the",
"accrual",
"method",
"of",
"accounting",
".",
"The",
"preparation",
"of",
"financial",
"statements",
"in",
"conformity",
"with",
"accounting",
"principles",
"generally",
"accepted",
"in",
"the",
"United",
"States",
"of",
"America",
"requires",
"management",
"to",
"make",
"estimates",
"and",
"assumptions",
"that",
"affect",
"the",
"reported",
"amounts",
"of",
"assets",
",",
"liabilities",
"and",
"changes",
"therein",
",",
"and",
"the",
"disclosure",
"of",
"contingent",
"assets",
"and",
"liabilities",
".",
"Actual",
"results",
"could",
"differ",
"from",
"those",
"estimates",
".",
"The",
"Plan",
"allows",
"participants",
"to",
"direct",
"contributions",
"into",
"money",
"market",
"funds",
",",
"various",
"registered",
"investment",
"company",
"funds",
",",
"and",
"Company",
"stock",
".",
"The",
"underlying",
"investment",
"securities",
"of",
"these",
"funds",
"and",
"Company",
"stock",
"are",
"exposed",
"to",
"various",
"risks",
",",
"including",
"but",
"not",
"limited",
"to",
"interest",
"rate",
",",
"market",
"and",
"credit",
"risk",
".",
"Due",
"to",
"the",
"level",
"of",
"risk",
"associated",
"with",
"certain",
"underlying",
"investment",
"securities",
"and",
"the",
"level",
"of",
"uncertainty",
"related",
"to",
"changes",
"in",
"the",
"value",
"of",
"the",
"funds",
",",
"in",
"particular",
"the",
"Company",
"stock",
",",
"it",
"is",
"likely",
"that",
"changes",
"in",
"the",
"value",
"of",
"investment",
"securities",
"will",
"occur",
"in",
"the",
"near",
"term",
"and",
"that",
"such",
"changes",
"could",
"materially",
"affect",
"participants",
"account",
"balances",
"and",
"the",
"amounts",
"reported",
"in",
"the",
"statement",
"of",
"net",
"assets",
"available",
"for",
"benefits",
"and",
"the",
"statement",
"of",
"changes",
"in",
"net",
"assets",
"available",
"for",
"benefits",
".",
"Participants",
"should",
"refer",
"to",
"Heritage",
"Financial",
"Corporation",
"s",
"annual",
"and",
"quarterly",
"financial",
"statements",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"Form",
"10K",
"and",
"10Q",
")",
"regarding",
"risks",
"associated",
"with",
"Company",
"stock",
".",
"The",
"Plan",
"s",
"investments",
"are",
"stated",
"at",
"fair",
"value",
".",
"Shares",
"of",
"registered",
"investment",
"company",
"funds",
"and",
"the",
"Company",
"stock",
"in",
"the",
"ESOP",
"fund",
"are",
"valued",
"at",
"quoted",
"market",
"prices",
".",
"The",
"Company",
"stock",
"fund",
"is",
"valued",
"at",
"fair",
"value",
"based",
"on",
"its",
"year-end",
"unit",
"closing",
"price",
"(",
"comprised",
"of",
"year-end",
"market",
"price",
"of",
"the",
"stock",
"on",
"the",
"NASDAQ",
"National",
"Market",
"System",
"plus",
"cash",
"equivalent",
"position",
"held",
",",
"if",
"any",
")",
".",
"Purchases",
"and",
"sales",
"of",
"securities",
"are",
"recorded",
"on",
"a",
"trade-date",
"basis",
".",
"Dividend",
"income",
"is",
"accrued",
"on",
"the",
"ex-dividend",
"date",
".",
"Interest",
"income",
"is",
"recorded",
"on",
"the",
"accrual",
"basis",
".",
"Realized",
"gains",
"and",
"losses",
"from",
"security",
"transactions",
"are",
"reported",
"on",
"the",
"moving",
"average",
"method",
".",
"Net",
"appreciation",
"in",
"fair",
"value",
"of",
"investments",
"represents",
"the",
"change",
"in",
"fair",
"value",
"from",
"one",
"period",
"to",
"the",
"next",
"and",
"realized",
"gains",
"and",
"losses",
".",
"Benefits",
"are",
"recorded",
"when",
"paid",
".",
"At",
"December",
"31",
",",
"2010",
"and",
"2009",
",",
"assets",
"allocated",
"to",
"withdrawing",
"participants",
"totaled",
"$",
"10,158",
"and",
"$",
"0",
",",
"respectively",
".",
"Notes",
"receivable",
"from",
"participants",
"are",
"stated",
"at",
"the",
"outstanding",
"balance",
"of",
"the",
"loan",
"plus",
"accrued",
"interest",
".",
"In",
"September",
"2010",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"(",
"ASU",
")",
"No.",
"201025",
",",
"Plan",
"Accounting",
"Defined",
"Contribution",
"Pension",
"Plans",
"(",
"Topic",
"962",
")",
",",
"Reporting",
"Loans",
"to",
"Participants",
"by",
"Defined",
"Contribution",
"Pension",
"Plans",
",",
"a",
"consensus",
"of",
"the",
"FASB",
"Emerging",
"Issues",
"Task",
"Force",
"(",
"Update",
")",
"."
] |
18 | 111251 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Participants",
"by",
"Defined",
"Contribution",
"Pension",
"Plans",
",",
"a",
"consensus",
"of",
"the",
"FASB",
"Emerging",
"Issues",
"Task",
"Force",
"(",
"Update",
")",
".",
"This",
"Update",
"requires",
"that",
"participant",
"loans",
"be",
"classified",
"as",
"notes",
"receivable",
"from",
"participants",
",",
"which",
"are",
"segregated",
"from",
"plan",
"investments",
"and",
"measured",
"at",
"their",
"unpaid",
"principal",
"balance",
"plus",
"any",
"accrued",
"but",
"unpaid",
"interest",
".",
"This",
"Update",
"is",
"effective",
"for",
"periods",
"ending",
"after",
"December",
"15",
",",
"2010",
",",
"with",
"early",
"adoption",
"permitted",
",",
"and",
"requires",
"retrospective",
"application",
"to",
"all",
"periods",
"presented",
".",
"ASU",
"2010-25",
"was",
"adopted",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"and",
"retrospectively",
"applied",
"to",
"December",
"31",
",",
"2009",
".",
"Prior",
"year",
"amounts",
"and",
"disclosures",
"have",
"been",
"revised",
"to",
"reflect",
"the",
"retrospective",
"application",
"of",
"adopting",
"this",
"new",
"standard",
".",
"The",
"Plan",
"purchased",
"shares",
"of",
"the",
"Company",
"s",
"stock",
"using",
"the",
"proceeds",
"of",
"a",
"loan",
"from",
"the",
"Company",
"and",
"the",
"Plan",
"holds",
"the",
"stock",
"in",
"a",
"trust",
"established",
"under",
"the",
"Plan",
".",
"The",
"loan",
"is",
"to",
"be",
"repaid",
"over",
"a",
"period",
"of",
"15",
"years",
"funded",
"by",
"Company",
"contributions",
"to",
"the",
"trust",
"fund",
".",
"The",
"Company",
"stock",
"acquired",
"with",
"the",
"ESOP",
"loan",
"is",
"held",
"in",
"a",
"suspense",
"account",
"under",
"the",
"Plan",
"pending",
"repayment",
"of",
"the",
"loan",
".",
"Under",
"the",
"ESOP",
"feature",
"of",
"the",
"Plan",
",",
"the",
"Company",
"is",
"obligated",
"to",
"make",
"contributions",
"in",
"cash",
"to",
"the",
"Plan",
"which",
",",
"when",
"aggregated",
"with",
"the",
"Plan",
"s",
"dividends",
"and",
"interest",
"earnings",
",",
"equal",
"the",
"amount",
"necessary",
"to",
"enable",
"the",
"Plan",
"to",
"make",
"its",
"regularly",
"scheduled",
"payments",
"of",
"principal",
"and",
"interest",
"due",
"on",
"its",
"term",
"indebtedness",
"to",
"the",
"Company",
".",
"Each",
"year",
",",
"as",
"the",
"Plan",
"makes",
"payments",
"of",
"principal",
"and",
"interest",
",",
"an",
"appropriate",
"percentage",
"of",
"stock",
"is",
"released",
"from",
"the",
"suspense",
"account",
"in",
"accordance",
"with",
"applicable",
"regulations",
"under",
"the",
"IRC",
",",
"and",
"allocated",
"to",
"participants",
",",
"generally",
"on",
"a",
"pro",
"rata",
"basis",
"based",
"on",
"annual",
"compensation",
".",
"The",
"unallocated",
"shares",
"of",
"Company",
"stock",
"collateralize",
"the",
"loan",
".",
"The",
"lender",
"has",
"no",
"rights",
"against",
"shares",
"once",
"they",
"are",
"allocated",
"under",
"the",
"Plan",
".",
"Accordingly",
",",
"the",
"table",
"below",
"presents",
"separately",
"the",
"assets",
"and",
"liabilities",
"and",
"changes",
"therein",
"pertaining",
"to",
":",
"The",
"Plan",
"s",
"ESOP",
"assets",
"are",
"summarized",
"as",
"follows",
"and",
"represent",
"a",
"portion",
"of",
"the",
"Heritage",
"Financial",
"Corporation",
"common",
"stock",
"as",
"presented",
"on",
"the",
"Statement",
"of",
"Net",
"Assets",
":",
"Pending",
"transfers",
"represent",
"stocks",
"to",
"be",
"deposited",
"to",
"participants",
"in",
"Q1",
"of",
"the",
"following",
"plan",
"year",
".",
"Upon",
"transfer",
",",
"the",
"shares",
"will",
"be",
"participant-directed",
".",
"The",
"ESOP",
"component",
"s",
"change",
"in",
"net",
"assets",
"is",
"summarized",
"as",
"follows",
":",
"In",
"January",
"1998",
",",
"the",
"Plan",
"borrowed",
"$",
"1,323,000",
"from",
"the",
"Company",
"to",
"purchase",
"shares",
"of",
"the",
"Company",
"s",
"stock",
".",
"The",
"loan",
"matures",
"January",
"2013",
"and",
"is",
"repaid",
"in",
"monthly",
"installments",
"of",
"$",
"13,023",
"primarily",
"from",
"the",
"Company",
"s",
"contributions",
".",
"Interest",
"is",
"accrued",
"at",
"a",
"rate",
"of",
"8.5",
"%",
"per",
"annum",
".",
"The",
"repayment",
"schedule",
"for",
"principal",
"is",
"as",
"follows",
":",
"The"
] |
18 | 111711 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"accrued",
"at",
"a",
"rate",
"of",
"8.5",
"%",
"per",
"annum",
".",
"The",
"repayment",
"schedule",
"for",
"principal",
"is",
"as",
"follows",
":",
"The",
"following",
"investments",
"represent",
"5",
"%",
"or",
"more",
"of",
"the",
"Plan",
"s",
"net",
"assets",
"available",
"for",
"benefits",
"at",
"the",
"end",
"of",
"the",
"year",
":",
"The",
"Plan",
"s",
"investments",
"appreciated",
"during",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"as",
"follows",
":",
"Fair",
"value",
"is",
"measured",
"in",
"three",
"levels",
",",
"based",
"on",
"the",
"markets",
"in",
"which",
"the",
"assets",
"and",
"liabilities",
"are",
"traded",
"and",
"the",
"reliability",
"of",
"the",
"assumptions",
"used",
"to",
"determine",
"fair",
"value",
".",
"The",
"three",
"levels",
"are",
"described",
"below",
":",
"The",
"asset",
"s",
"or",
"liability",
"s",
"fair",
"value",
"measurement",
"level",
"within",
"the",
"fair",
"value",
"hierarchy",
"is",
"based",
"on",
"the",
"lowest",
"level",
"of",
"any",
"input",
"that",
"is",
"significant",
"to",
"the",
"fair",
"value",
"measurement",
"valuation",
"techniques",
"used",
"need",
"to",
"maximize",
"the",
"use",
"of",
"observable",
"inputs",
"and",
"minimize",
"the",
"use",
"of",
"unobservable",
"inputs",
".",
"Following",
"is",
"a",
"description",
"of",
"the",
"valuation",
"methodologies",
"used",
"for",
"assets",
"measured",
"at",
"fair",
"value",
"of",
"financial",
"assets",
"and",
"liabilities",
".",
"There",
"have",
"been",
"no",
"changes",
"in",
"the",
"methodologies",
"used",
"at",
"December",
"31",
",",
"2010",
"and",
"2009",
".",
"Money",
"market",
"funds",
"and",
"equity",
"securities",
":",
"Valued",
"at",
"the",
"closing",
"price",
"reported",
"on",
"the",
"active",
"market",
"on",
"which",
"the",
"individual",
"securities",
"are",
"traded",
".",
"Registered",
"investment",
"company",
"funds",
":",
"Valued",
"at",
"the",
"net",
"asset",
"value",
"(",
"NAV",
")",
"of",
"shares",
"held",
"by",
"the",
"plan",
"at",
"year-end",
".",
"The",
"methods",
"described",
"above",
"may",
"produce",
"a",
"fair",
"value",
"calculation",
"that",
"may",
"not",
"be",
"indicative",
"of",
"net",
"realizable",
"value",
"or",
"reflective",
"of",
"future",
"fair",
"values",
".",
"Furthermore",
",",
"while",
"the",
"Plan",
"believes",
"its",
"valuation",
"methods",
"are",
"appropriate",
"and",
"consistent",
"with",
"other",
"market",
"participants",
",",
"the",
"use",
"of",
"different",
"methodologies",
"or",
"assumptions",
"to",
"determine",
"the",
"fair",
"value",
"of",
"certain",
"financial",
"instruments",
"could",
"result",
"in",
"a",
"different",
"fair",
"value",
"measurement",
"at",
"the",
"reporting",
"date",
".",
"The",
"following",
"table",
"sets",
"forth",
"by",
"level",
",",
"within",
"the",
"fair",
"value",
"hierarchy",
",",
"the",
"Plan",
"s",
"assets",
"at",
"fair",
"value",
"on",
"a",
"recurring",
"basis",
"as",
"of",
"December",
"31",
",",
"2010",
":",
"The",
"following",
"table",
"sets",
"forth",
"by",
"level",
",",
"within",
"the",
"fair",
"value",
"hierarchy",
",",
"the",
"Plan",
"s",
"assets",
"at",
"fair",
"value",
"on",
"a",
"recurring",
"basis",
"as",
"of",
"December",
"31",
",",
"2009",
":",
"Fair",
"Value",
"of",
"Other",
"Financial",
"Instruments",
"The",
"fair",
"value",
"of",
"other",
"financial",
"instruments",
"such",
"as",
"employer",
"contributions",
"receivable",
"and",
"loan",
"payable",
"approximate",
"their",
"carrying",
"value",
".",
"The",
"Company",
"reserves",
"the",
"right",
"to",
"terminate",
"the",
"Plan",
"at",
"any",
"time",
",",
"subject",
"to",
"Plan",
"provisions",
".",
"Upon",
"termination",
"of",
"the",
"Plan",
",",
"participant",
"accounts",
"become",
"fully",
"vested",
"and",
"will",
"be",
"distributed",
"to",
"the",
"participant",
"or",
"his",
"or",
"her",
"beneficiary",
"at",
"the",
"time",
"prescribed",
"by",
"the",
"Plan",
"terms",
"and",
"the",
"IRC",
".",
"Upon",
"termination",
"of",
"the",
"Plan",
",",
"the",
"trustee",
"will",
"direct",
"the",
"Plan",
"administrator",
"to",
"pay",
"all",
"liabilities",
"and",
"expenses",
"of",
"the",
"trust",
"fund",
"and",
"to",
"sell",
"shares",
"of",
"unallocated",
"stock",
"to",
"the",
"extent",
"it",
"determines",
"such",
"sale",
"necessary",
"to",
"repay",
"the",
"loan",
".",
"Remaining",
"unallocated",
"shares",
"will",
"be",
"allocated"
] |
18 | 112191 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
6,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"stock",
"to",
"the",
"extent",
"it",
"determines",
"such",
"sale",
"necessary",
"to",
"repay",
"the",
"loan",
".",
"Remaining",
"unallocated",
"shares",
"will",
"be",
"allocated",
"to",
"participants",
".",
"Although",
"the",
"Plan",
"has",
"been",
"amended",
"since",
"receiving",
"the",
"determination",
"letter",
",",
"the",
"Plan",
"administrator",
"believes",
"that",
"the",
"Plan",
"is",
"designed",
"and",
"is",
"currently",
"being",
"operated",
"in",
"compliance",
"with",
"the",
"applicable",
"requirements",
"of",
"the",
"IRC",
".",
"Therefore",
",",
"no",
"provision",
"for",
"income",
"taxes",
"has",
"been",
"included",
"in",
"the",
"Plan",
"s",
"financial",
"statements",
".",
"The",
"Plan",
"will",
"be",
"submitted",
"to",
"the",
"IRS",
"for",
"a",
"determination",
"letter",
"in",
"accordance",
"with",
"the",
"appropriate",
"reporting",
"cycle",
".",
"Accounting",
"principles",
"generally",
"accepted",
"in",
"the",
"United",
"States",
"of",
"America",
"require",
"plan",
"management",
"to",
"evaluate",
"tax",
"positions",
"taken",
"by",
"the",
"Plan",
"and",
"recognize",
"a",
"tax",
"liability",
"(",
"or",
"asset",
")",
"if",
"the",
"Plan",
"has",
"taken",
"an",
"uncertain",
"position",
"that",
"more",
"likely",
"than",
"not",
"would",
"not",
"be",
"sustained",
"upon",
"examination",
"by",
"the",
"Internal",
"Revenue",
"Service",
".",
"The",
"plan",
"administrator",
"has",
"analyzed",
"the",
"tax",
"positions",
"taken",
"by",
"the",
"Plan",
",",
"and",
"has",
"concluded",
"that",
"as",
"of",
"December",
"31",
",",
"2010",
",",
"there",
"are",
"no",
"uncertain",
"positions",
"taken",
"or",
"expected",
"to",
"be",
"taken",
"that",
"would",
"require",
"recognition",
"of",
"a",
"liability",
"(",
"or",
"asset",
")",
"or",
"disclosure",
"in",
"the",
"financial",
"statements",
".",
"The",
"Plan",
"is",
"subject",
"to",
"routine",
"audits",
"by",
"taxing",
"jurisdictions",
";",
"however",
",",
"there",
"are",
"currently",
"no",
"audits",
"for",
"any",
"tax",
"periods",
"in",
"progress",
".",
"The",
"plan",
"administrator",
"believes",
"it",
"is",
"no",
"longer",
"subject",
"to",
"income",
"tax",
"examinations",
"for",
"years",
"prior",
"to",
"2008",
".",
"The",
"Plan",
"s",
"assets",
",",
"which",
"consist",
"primarily",
"of",
"shares",
"of",
"Company",
"stock",
",",
"registered",
"investment",
"company",
"funds",
",",
"and",
"money",
"market",
"funds",
"are",
"held",
"by",
"Wilmington",
"Trust",
"Company",
",",
"the",
"Custodian",
"of",
"the",
"Plan",
"assets",
".",
"The",
"Company",
"s",
"contributions",
"are",
"held",
"and",
"managed",
"by",
"the",
"custodian",
"at",
"the",
"direction",
"of",
"the",
"Trustees",
",",
"which",
"invests",
"cash",
"received",
",",
"interest",
"and",
"dividend",
"income",
",",
"and",
"makes",
"distributions",
"to",
"participants",
".",
"The",
"record",
"keeper",
"administers",
"the",
"payment",
"of",
"interest",
"and",
"principal",
"on",
"the",
"loan",
",",
"which",
"is",
"reimbursed",
"to",
"the",
"trustee",
"through",
"contributions",
"determined",
"by",
"the",
"Company",
".",
"Officers",
"or",
"employees",
"of",
"the",
"Company",
"perform",
"certain",
"administrative",
"functions",
".",
"No",
"officer",
"or",
"employee",
"receives",
"compensation",
"from",
"the",
"Plan",
".",
"For",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"the",
"Plan",
"paid",
"Wilmington",
"Trust",
"Company",
"$",
"12,842",
"for",
"services",
"as",
"custodian",
"of",
"the",
"Plan",
"assets",
".",
"For",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"the",
"Plan",
"paid",
"approximately",
"$",
"88,350",
"to",
"other",
"service",
"providers",
"that",
"are",
"defined",
"as",
"a",
"Party",
"in",
"Interest",
"under",
"ERISA",
".",
"Subsequent",
"events",
"have",
"been",
"evaluated",
"through",
"the",
"date",
"the",
"financial",
"statements",
"were",
"issued",
".",
"The",
"following",
"is",
"a",
"reconciliation",
"of",
"net",
"assets",
"available",
"for",
"benefits",
"per",
"the",
"financial",
"statements",
"to",
"Schedule",
"H",
"of",
"Form",
"5500",
":",
"The",
"following",
"is",
"a",
"reconciliation",
"of",
"benefits",
"paid",
"to",
"participants",
"per",
"the",
"financial",
"statements",
"to",
"Schedule",
"H",
"of",
"Form",
"5500",
":",
"See",
"accompanying",
"report",
"of",
"independent",
"registered",
"public",
"accounting",
"firm",
".",
"See",
"accompanying",
"report",
"of",
"independent",
"registered",
"public",
"accounting",
"firm",
"."
] |
18 | 112671 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"See",
"accompanying",
"report",
"of",
"independent",
"registered",
"public",
"accounting",
"firm",
".",
"See",
"accompanying",
"report",
"of",
"independent",
"registered",
"public",
"accounting",
"firm",
".",
"The",
"Plan",
",",
"pursuant",
"to",
"the",
"requirements",
"of",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"the",
"trustees",
"(",
"or",
"other",
"person",
"who",
"administer",
"the",
"Plan",
")",
"have",
"duly",
"caused",
"the",
"annual",
"report",
"to",
"be",
"signed",
"on",
"its",
"behalf",
"by",
"the",
"undersigned",
"hereunto",
"duly",
"authorized",
".",
"HERITAGE",
"FINANCIAL",
"CORPORATION",
"401",
"(",
"k",
")",
"(",
"Name",
"of",
"Plan",
")",
"Consent",
"of",
"Independent",
"Registered",
"Public",
"Accounting",
"Firm",
"Exhibit",
"23.1",
"Audit",
"and",
"Finance",
"Committee",
"Heritage",
"Financial",
"Corporation",
"s",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
":",
"We",
"consent",
"to",
"the",
"incorporation",
"by",
"reference",
"in",
"the",
"registration",
"statement",
"(",
"No.",
"333-87599",
")",
"on",
"Form",
"S-8",
"of",
"Heritage",
"Financial",
"Corporation",
"of",
"our",
"report",
"dated",
"June",
"21",
",",
"2011",
",",
"with",
"respect",
"to",
"the",
"statements",
"of",
"net",
"assets",
"available",
"for",
"benefits",
"of",
"the",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"2009",
",",
"the",
"related",
"statement",
"of",
"changes",
"in",
"net",
"assets",
"available",
"for",
"benefits",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"and",
"the",
"supplemental",
"schedules",
"H",
",",
"line",
"4i",
"Schedule",
"of",
"Assets",
"(",
"Held",
"at",
"End",
"of",
"Year",
")",
"as",
"of",
"December",
"31",
",",
"2010",
"and",
"line",
"4a",
"Schedule",
"of",
"Delinquent",
"Participant",
"Contributions",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"which",
"report",
"appears",
"in",
"the",
"December",
"31",
",",
"2010",
"annual",
"report",
"on",
"Form",
"11-K",
"of",
"the",
"Heritage",
"Financial",
"Corporation",
"401",
"(",
"k",
")",
"Employee",
"Stock",
"Ownership",
"Plan",
"and",
"Trust",
"."
] |
19 | 112934 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0
] | [
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"Registrant",
"has",
"submitted",
"electronically",
"and",
"posted",
"on",
"its",
"corporate",
"Web",
"site",
",",
"if",
"any",
",",
"every",
"Interactive",
"Data",
"File",
"required",
"to",
"be",
"submitted",
"and",
"posted",
"pursuant",
"to",
"Rule",
"405",
"of",
"Regulations",
"S-T",
"(",
"232.405",
"of",
"this",
"chapter",
")",
"during",
"the",
"preceding",
"12",
"months",
"(",
"or",
"for",
"shorter",
"period",
"that",
"the",
"Registrant",
"was",
"required",
"to",
"submit",
"and",
"post",
"such",
"files",
")",
".",
"Indicate",
"by",
"check",
"mark",
"whether",
"the",
"registrant",
"is",
"a",
"large",
"accelerated",
"filer",
",",
"an",
"accelerated",
"filer",
",",
"a",
"non-accelerated",
"filer",
",",
"or",
"a",
"smaller",
"reporting",
"company",
".",
"See",
"definitions",
"of",
"“",
"large",
"accelerated",
"filer",
"”",
",",
"“",
"accelerated",
"filer",
"”",
"and",
"“",
"smaller",
"reporting",
"company",
"”",
"in",
"Rule",
"12b-2",
"of",
"the",
"Exchange",
"Act",
"(",
"check",
"one",
")",
":",
"As",
"of",
"May",
"16",
",",
"2011",
",",
"there",
"were",
"41,543,655",
"outstanding",
"shares",
"of",
"common",
"stock",
",",
"par",
"value",
"$",
"0.001",
"per",
"share",
",",
"of",
"the",
"registrant",
".",
"(",
"1",
")",
"Derived",
"from",
"audited",
"financial",
"statements",
".",
"The",
"accompanying",
"unaudited",
"consolidated",
"financial",
"statements",
"have",
"been",
"prepared",
"in",
"accordance",
"with",
"generally",
"accepted",
"accounting",
"principles",
"in",
"the",
"United",
"States",
"of",
"America",
"(",
"“",
"US",
"GAAP",
"”",
")",
"for",
"interim",
"financial",
"information",
"and",
"with",
"the",
"instructions",
"to",
"Form",
"10-Q",
"and",
"Article",
"8-03",
"of",
"Regulation",
"S-X",
".",
"Accordingly",
",",
"the",
"consolidated",
"financial",
"statements",
"do",
"not",
"include",
"all",
"of",
"the",
"information",
"and",
"footnotes",
"required",
"by",
"US",
"GAAP",
"for",
"complete",
"financial",
"statements",
".",
"In",
"the",
"opinion",
"of",
"management",
",",
"all",
"adjustments",
"considered",
"necessary",
"for",
"a",
"fair",
"presentation",
"have",
"been",
"included",
"and",
"such",
"adjustments",
"are",
"of",
"a",
"normal",
"recurring",
"nature",
".",
"These",
"consolidated",
"financial",
"statements",
"should",
"be",
"read",
"in",
"conjunction",
"with",
"the",
"consolidated",
"financial",
"statements",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
"and",
"notes",
"thereto",
"and",
"other",
"pertinent",
"information",
"contained",
"in",
"the",
"Annual",
"Report",
"on",
"Form",
"10-K",
"of",
"InsPro",
"Technologies",
"Corporation",
"(",
"the",
"“",
"Company",
"”",
",",
"“",
"we",
"”",
",",
"“",
"us",
"”",
"or",
"“",
"our",
"”",
")",
"as",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"“",
"Commission",
"”",
")",
".",
"The",
"consolidated",
"financial",
"statements",
"of",
"the",
"Company",
"include",
"the",
"Company",
"and",
"its",
"subsidiaries",
".",
"All",
"material",
"inter-company",
"balances",
"and",
"transactions",
"have",
"been",
"eliminated",
".",
"The",
"results",
"of",
"operations",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"are",
"not",
"necessarily",
"indicative",
"of",
"the",
"results",
"for",
"the",
"full",
"fiscal",
"year",
"ending",
"December",
"31",
",",
"2011",
".",
"InsPro",
"Technologies",
"Corporation",
"was",
"incorporated",
"under",
"the",
"laws",
"of",
"the",
"state",
"of",
"Nevada",
"on",
"October",
"21",
",",
"2004",
"as",
"Darwin",
"Resources",
"Corp.",
",",
"(",
"“",
"Darwin-NV",
"”",
")",
".",
"On",
"November",
"22",
",",
"2005",
",",
"Darwin-NV",
"merged",
"with",
"and",
"into",
"its",
"newly-formed",
"wholly-owned",
"subsidiary",
",",
"Darwin",
"Resources",
"Corp.",
",",
"a"
] |
19 | 113351 | [
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
5,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
0,
5,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
3,
4,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"November",
"22",
",",
"2005",
",",
"Darwin-NV",
"merged",
"with",
"and",
"into",
"its",
"newly-formed",
"wholly-owned",
"subsidiary",
",",
"Darwin",
"Resources",
"Corp.",
",",
"a",
"Delaware",
"corporation",
"(",
"“",
"Darwin-DE",
"”",
")",
",",
"solely",
"for",
"the",
"purpose",
"of",
"changing",
"the",
"Company",
"’",
"s",
"state",
"of",
"incorporation",
"from",
"Nevada",
"to",
"Delaware",
".",
"On",
"November",
"23",
",",
"2005",
",",
"HBDC",
"II",
",",
"Inc.",
",",
"a",
"newly-formed",
"wholly-owned",
"subsidiary",
"of",
"Darwin-DE",
",",
"was",
"merged",
"with",
"and",
"into",
"Health",
"Benefits",
"Direct",
"Corporation",
",",
"a",
"privately-held",
"Delaware",
"corporation",
"(",
"“",
"HBDC",
"”",
")",
",",
"and",
"the",
"name",
"of",
"the",
"resulting",
"entity",
"was",
"changed",
"from",
"Health",
"Benefits",
"Direct",
"Corporation",
"to",
"HBDC",
"II",
",",
"Inc.",
".",
"Following",
"the",
"merger",
",",
"Darwin-DE",
"changed",
"its",
"name",
"to",
"Health",
"Benefits",
"Direct",
"Corporation",
".",
"On",
"November",
"29",
",",
"2010",
",",
"Health",
"Benefits",
"Direct",
"Corporation",
"changed",
"its",
"name",
"to",
"InsPro",
"Technologies",
"Corporation",
".",
"Our",
"current",
"operations",
"consist",
"of",
"our",
"InsPro",
"Technologies",
"LLC",
"subsidiary",
"(",
"“",
"InsPro",
"Technologies",
"”",
")",
".",
"InsPro",
"Technologies",
"is",
"a",
"provider",
"of",
"comprehensive",
",",
"web-based",
"insurance",
"administration",
"software",
"applications",
".",
"InsPro",
"Technologies",
"’",
"flagship",
"software",
"product",
"is",
"InsPro",
",",
"which",
"was",
"introduced",
"in",
"2004",
".",
"InsPro",
"Technologies",
"offers",
"InsPro",
"Enterprise",
"(",
"“",
"InsPro",
"”",
")",
"on",
"a",
"licensed",
"and",
"an",
"Application",
"Service",
"Provider",
"(",
"“",
"ASP",
"”",
")",
"basis",
".",
"InsPro",
"is",
"an",
"insurance",
"administration",
"and",
"marketing",
"system",
"that",
"supports",
"group",
"and",
"individual",
"business",
"lines",
",",
"and",
"efficiently",
"processes",
"agent",
",",
"direct",
"market",
",",
"worksite",
"and",
"web",
"site",
"generated",
"business",
".",
"InsPro",
"Technologies",
"’",
"clients",
"include",
"insurance",
"carriers",
"and",
"third",
"party",
"administrators",
".",
"InsPro",
"Technologies",
"realizes",
"revenue",
"from",
"the",
"sale",
"of",
"software",
"licenses",
",",
"application",
"service",
"provider",
"fees",
",",
"software",
"maintenance",
"fees",
"and",
"professional",
"services",
".",
"We",
"acquired",
"InsPro",
"Technologies",
"on",
"October",
"1",
",",
"2007",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"The",
"preparation",
"of",
"financial",
"statements",
"in",
"conformity",
"with",
"US",
"GAAP",
"requires",
"management",
"to",
"make",
"estimates",
"and",
"assumptions",
"that",
"affect",
"certain",
"reported",
"amounts",
"and",
"disclosures",
".",
"Accordingly",
",",
"actual",
"results",
"could",
"differ",
"from",
"those",
"estimates",
".",
"Significant",
"estimates",
"in",
"2011",
"and",
"2010",
"include",
"the",
"allowance",
"for",
"doubtful",
"accounts",
",",
"stock-based",
"compensation",
",",
"the",
"useful",
"lives",
"of",
"property",
"and",
"equipment",
"and",
"intangible",
"assets",
",",
"warrant",
"liability",
"and",
"revenue",
"recognition",
".",
"The",
"Company",
"considers",
"all",
"liquid",
"debt",
"instruments",
"with",
"original",
"maturities",
"of",
"3",
"months",
"or",
"less",
"to",
"be",
"cash",
"equivalents",
".",
"The",
"Company",
"has",
"a",
"policy",
"of",
"establishing",
"an",
"allowance",
"for",
"uncollectible",
"accounts",
"based",
"on",
"its",
"best",
"estimate",
"of",
"the",
"amount",
"of",
"probable",
"credit",
"losses",
"in",
"its",
"existing",
"accounts",
"receivable",
".",
"The",
"Company",
"periodically",
"reviews",
"its",
"accounts",
"receivable",
"to",
"determine",
"whether",
"an",
"allowance",
"is",
"necessary",
"based",
"on",
"an",
"analysis",
"of",
"past",
"due",
"accounts",
"and",
"other"
] |
19 | 113771 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"its",
"accounts",
"receivable",
"to",
"determine",
"whether",
"an",
"allowance",
"is",
"necessary",
"based",
"on",
"an",
"analysis",
"of",
"past",
"due",
"accounts",
"and",
"other",
"factors",
"that",
"may",
"indicate",
"that",
"the",
"realization",
"of",
"an",
"account",
"may",
"be",
"in",
"doubt",
".",
"Account",
"balances",
"deemed",
"to",
"be",
"uncollectible",
"are",
"charged",
"to",
"the",
"allowance",
"after",
"all",
"means",
"of",
"collection",
"have",
"been",
"exhausted",
"and",
"the",
"potential",
"for",
"recovery",
"is",
"considered",
"remote",
".",
"At",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"the",
"Company",
"has",
"established",
",",
"based",
"on",
"a",
"review",
"of",
"its",
"outstanding",
"balances",
",",
"an",
"allowance",
"for",
"doubtful",
"accounts",
"in",
"the",
"amount",
"of",
"$",
"0",
".",
"Accounts",
"receivable",
"from",
"the",
"two",
"largest",
"InsPro",
"Technologies",
"clients",
"accounted",
"for",
"30",
"%",
"and",
"17",
"%",
",",
"respectively",
",",
"of",
"the",
"Company",
"’",
"s",
"total",
"accounts",
"receivable",
"balance",
"at",
"March",
"31",
",",
"2011",
".",
"The",
"carrying",
"amounts",
"of",
"financial",
"instruments",
",",
"including",
"cash",
"and",
"cash",
"equivalents",
",",
"restricted",
"cash",
",",
"accounts",
"receivable",
",",
"accounts",
"payable",
",",
"accrued",
"expenses",
"and",
"capital",
"leases",
"approximated",
"fair",
"value",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
",",
"because",
"of",
"the",
"relatively",
"short-term",
"maturity",
"of",
"these",
"instruments",
"and",
"their",
"market",
"interest",
"rates",
".",
"Property",
"and",
"equipment",
"are",
"carried",
"at",
"cost",
".",
"The",
"cost",
"of",
"repairs",
"and",
"maintenance",
"are",
"expensed",
"as",
"incurred",
";",
"major",
"replacements",
"and",
"improvements",
"are",
"capitalized",
".",
"When",
"assets",
"are",
"retired",
"or",
"disposed",
"of",
",",
"the",
"cost",
"and",
"accumulated",
"depreciation",
"are",
"removed",
"from",
"the",
"accounts",
",",
"and",
"any",
"resulting",
"gains",
"or",
"losses",
"are",
"included",
"in",
"income",
"in",
"the",
"year",
"of",
"disposition",
".",
"In",
"accordance",
"with",
"Statement",
"of",
"Financial",
"Accounting",
"Standards",
"ASC",
"360",
",",
"``",
"Accounting",
"for",
"the",
"Impairment",
"or",
"Disposal",
"of",
"Long-Lived",
"Assets",
"''",
"the",
"Company",
"examines",
"the",
"possibility",
"of",
"decreases",
"in",
"the",
"value",
"of",
"fixed",
"assets",
"when",
"events",
"or",
"changes",
"in",
"circumstances",
"reflect",
"the",
"fact",
"that",
"their",
"recorded",
"value",
"may",
"not",
"be",
"recoverable",
".",
"Intangible",
"assets",
"consist",
"of",
"assets",
"acquired",
"in",
"connection",
"with",
"the",
"acquisition",
"of",
"InsPro",
"Technologies",
"and",
"costs",
"incurred",
"in",
"connection",
"with",
"the",
"development",
"of",
"the",
"Company",
"’",
"s",
"software",
".",
"See",
"Note",
"4",
"–",
"Intangible",
"Assets",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"The",
"Company",
"periodically",
"reviews",
"its",
"long-lived",
"assets",
"for",
"impairment",
"whenever",
"events",
"or",
"changes",
"in",
"circumstances",
"indicate",
"that",
"the",
"carrying",
"amount",
"of",
"the",
"assets",
"may",
"not",
"be",
"fully",
"recoverable",
".",
"The",
"Company",
"recognizes",
"an",
"impairment",
"loss",
"when",
"the",
"sum",
"of",
"expected",
"undiscounted",
"future",
"cash",
"flows",
"is",
"less",
"than",
"the",
"carrying",
"amount",
"of",
"the",
"asset",
".",
"The",
"amount",
"of",
"impairment",
"is",
"measured",
"as",
"the",
"difference",
"between",
"the",
"asset",
"'s",
"estimated",
"fair",
"value",
"and",
"its",
"book",
"value",
".",
"For",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"recorded",
"a",
"gain",
"on",
"the",
"change",
"in",
"fair",
"value",
"of",
"derivative",
"liability",
"of",
"$",
"309,294",
"to",
"mark",
"to",
"market",
"for",
"the",
"decrease",
"in",
"fair",
"value",
"of",
"the"
] |
19 | 114221 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0
] | [
"fair",
"value",
"of",
"derivative",
"liability",
"of",
"$",
"309,294",
"to",
"mark",
"to",
"market",
"for",
"the",
"decrease",
"in",
"fair",
"value",
"of",
"the",
"warrants",
"during",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
".",
"The",
"Company",
"determined",
"the",
"fair",
"value",
"of",
"the",
"warrant",
"liability",
"at",
"March",
"31",
",",
"2011",
"was",
"$",
"3,721,046",
".",
"The",
"fair",
"value",
"was",
"determined",
"using",
"the",
"Black",
"Scholes",
"Option",
"Pricing",
"Model",
"based",
"on",
"the",
"following",
"assumptions",
":",
"dividend",
"yield",
":",
"0",
"%",
",",
"risk",
"free",
"rate",
":",
"0.17",
"%",
"and",
"the",
"following",
":",
"A",
"summary",
"of",
"the",
"Company",
"'s",
"warrant",
"liability",
"activity",
"and",
"balances",
"as",
"of",
"and",
"for",
"year",
"ended",
"December",
"31",
",",
"2010",
"are",
"as",
"follows",
":",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"The",
"Company",
"accounts",
"for",
"income",
"taxes",
"under",
"the",
"liability",
"method",
".",
"Under",
"this",
"method",
",",
"deferred",
"income",
"tax",
"assets",
"and",
"liabilities",
"are",
"determined",
"based",
"on",
"differences",
"between",
"the",
"financial",
"reporting",
"and",
"tax",
"bases",
"of",
"assets",
"and",
"liabilities",
"and",
"are",
"measured",
"using",
"the",
"enacted",
"tax",
"rates",
"and",
"laws",
"that",
"will",
"be",
"in",
"effect",
"when",
"the",
"differences",
"are",
"expected",
"to",
"reverse",
".",
"Basic",
"earnings",
"(",
"loss",
")",
"per",
"share",
"is",
"computed",
"by",
"dividing",
"net",
"income",
"(",
"loss",
")",
"by",
"the",
"weighted",
"average",
"number",
"of",
"shares",
"of",
"common",
"stock",
"outstanding",
"during",
"the",
"period",
".",
"Diluted",
"earnings",
"per",
"share",
"is",
"computed",
"by",
"dividing",
"net",
"income",
"by",
"the",
"weighted",
"average",
"number",
"of",
"shares",
"of",
"common",
"stock",
",",
"common",
"stock",
"equivalents",
"and",
"potentially",
"dilutive",
"securities",
"outstanding",
"during",
"the",
"period",
".",
"Diluted",
"loss",
"per",
"common",
"share",
"is",
"not",
"presented",
"because",
"it",
"is",
"anti-dilutive",
".",
"The",
"Company",
"'s",
"common",
"stock",
"equivalents",
"at",
"March",
"31",
",",
"2011",
",",
"include",
"the",
"following",
":",
"InsPro",
"Technologies",
"offers",
"InsPro",
"on",
"a",
"licensed",
"and",
"an",
"ASP",
"basis",
".",
"An",
"InsPro",
"software",
"license",
"entitles",
"the",
"purchaser",
"a",
"perpetual",
"license",
"to",
"a",
"copy",
"of",
"the",
"InsPro",
"software",
"installed",
"at",
"a",
"single",
"client",
"location",
".",
"Alternatively",
",",
"ASP",
"hosting",
"service",
"enables",
"a",
"client",
"to",
"lease",
"the",
"InsPro",
"software",
",",
"paying",
"only",
"for",
"that",
"capacity",
"required",
"to",
"support",
"their",
"business",
".",
"ASP",
"clients",
"access",
"InsPro",
"installed",
"on",
"InsPro",
"Technologies",
"owned",
"servers",
"located",
"at",
"InsPro",
"Technologies",
"’",
"offices",
"or",
"at",
"a",
"third",
"party",
"’",
"s",
"site",
".",
"InsPro",
"Technologies",
"’",
"software",
"maintenance",
"fees",
"apply",
"to",
"both",
"licensed",
"and",
"ASP",
"clients",
".",
"Maintenance",
"fees",
"cover",
"periodic",
"updates",
"to",
"the",
"application",
"and",
"the",
"InsPro",
"help",
"desk",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"InsPro",
"Technologies",
"’",
"consulting",
"and",
"implementation",
"services",
"are",
"generally",
"associated",
"with",
"the",
"implementation",
"of",
"an",
"InsPro",
"instance",
"for",
"either",
"an",
"ASP",
"or",
"licensed",
"client",
",",
"and",
"cover",
"such",
"activity",
"as",
"InsPro",
"installation",
",",
"configuration",
",",
"modification",
"of",
"InsPro",
"functionality",
",",
"client",
"insurance",
"document",
"design",
"and",
"system",
"documentation",
".",
"InsPro",
"Technologies",
"’",
"revenue",
"is",
"generally"
] |
19 | 114661 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
",",
"modification",
"of",
"InsPro",
"functionality",
",",
"client",
"insurance",
"document",
"design",
"and",
"system",
"documentation",
".",
"InsPro",
"Technologies",
"’",
"revenue",
"is",
"generally",
"recognized",
"under",
"ASC",
"985-605",
".",
"For",
"software",
"arrangements",
"involving",
"multiple",
"elements",
",",
"the",
"Company",
"allocates",
"revenue",
"to",
"each",
"element",
"based",
"on",
"the",
"relative",
"fair",
"value",
"or",
"the",
"residual",
"method",
",",
"as",
"applicable",
"using",
"vendor",
"specific",
"objective",
"evidence",
"to",
"determine",
"fair",
"value",
",",
"which",
"is",
"based",
"on",
"prices",
"charged",
"when",
"the",
"element",
"is",
"sold",
"separately",
".",
"Software",
"revenue",
"accounted",
"for",
"under",
"ASC",
"985-605",
"is",
"recognized",
"when",
"persuasive",
"evidence",
"of",
"an",
"arrangement",
"exists",
",",
"the",
"software",
"is",
"delivered",
"in",
"accordance",
"with",
"all",
"terms",
"and",
"conditions",
"of",
"the",
"customer",
"contracts",
",",
"the",
"fee",
"is",
"fixed",
"or",
"determinable",
"and",
"collectibility",
"is",
"probable",
".",
"Revenue",
"related",
"to",
"post-contract",
"customer",
"support",
"(",
"“",
"PCS",
"”",
")",
",",
"including",
"technical",
"support",
"and",
"unspecified",
"when-and-if",
"available",
"software",
"upgrades",
",",
"is",
"recognized",
"ratably",
"over",
"the",
"PCS",
"term",
".",
"Under",
"ASC",
"985-605",
",",
"if",
"fair",
"value",
"does",
"not",
"exist",
"for",
"any",
"undelivered",
"element",
",",
"revenue",
"is",
"not",
"recognized",
"until",
"the",
"earlier",
"of",
"(",
"i",
")",
"delivery",
"of",
"such",
"element",
"or",
"(",
"ii",
")",
"when",
"fair",
"value",
"of",
"the",
"undelivered",
"element",
"is",
"established",
",",
"unless",
"the",
"undelivered",
"element",
"is",
"a",
"service",
",",
"in",
"which",
"case",
"revenue",
"is",
"recognized",
"as",
"the",
"service",
"is",
"performed",
"once",
"the",
"service",
"is",
"the",
"only",
"undelivered",
"element",
".",
"The",
"Company",
"recognizes",
"revenue",
"from",
"software",
"license",
"agreements",
"when",
"persuasive",
"evidence",
"of",
"an",
"agreement",
"exists",
",",
"delivery",
"of",
"the",
"software",
"has",
"occurred",
",",
"the",
"fee",
"is",
"fixed",
"or",
"determinable",
",",
"and",
"collectibility",
"is",
"probable",
".",
"The",
"Company",
"considers",
"fees",
"relating",
"to",
"arrangements",
"with",
"payment",
"terms",
"extending",
"beyond",
"one",
"year",
"to",
"not",
"be",
"fixed",
"or",
"determinable",
"and",
"revenue",
"for",
"these",
"arrangements",
"is",
"recognized",
"as",
"payments",
"become",
"due",
"from",
"the",
"customer",
".",
"In",
"software",
"arrangements",
"that",
"include",
"more",
"than",
"one",
"InsPro",
"module",
",",
"the",
"Company",
"allocates",
"the",
"total",
"arrangement",
"fee",
"among",
"the",
"modules",
"based",
"on",
"the",
"relative",
"fair",
"value",
"of",
"each",
"of",
"the",
"modules",
".",
"License",
"revenue",
"allocated",
"to",
"software",
"products",
"generally",
"is",
"recognized",
"upon",
"delivery",
"of",
"the",
"products",
"or",
"deferred",
"and",
"recognized",
"in",
"future",
"periods",
"to",
"the",
"extent",
"that",
"an",
"arrangement",
"includes",
"one",
"or",
"more",
"elements",
"to",
"be",
"delivered",
"at",
"a",
"future",
"date",
"and",
"for",
"which",
"fair",
"values",
"have",
"not",
"been",
"established",
".",
"Revenue",
"allocated",
"to",
"maintenance",
"agreements",
"is",
"recognized",
"ratably",
"over",
"the",
"maintenance",
"term",
"and",
"revenue",
"allocated",
"to",
"training",
"and",
"other",
"service",
"elements",
"is",
"recognized",
"as",
"the",
"services",
"are",
"performed",
".",
"The",
"unearned",
"portion",
"of",
"InsPro",
"Technologies",
"’",
"revenue",
",",
"which",
"is",
"revenue",
"collected",
"or",
"billed",
"but",
"not",
"yet",
"recognized",
"as",
"earned",
",",
"has",
"been",
"included",
"in",
"the",
"consolidated",
"balance",
"sheet",
"as",
"a",
"liability",
"for",
"deferred",
"revenue",
".",
"Cost",
"of",
"revenues",
"includes",
"direct",
"labor",
"and",
"associated",
"costs",
"for",
"employees",
"and",
"independent",
"contractors",
"performing",
"InsPro",
"design",
",",
"development",
",",
"implementation",
",",
"testing",
"together",
"with",
"customer",
"management",
",",
"training",
"and",
"technical"
] |
19 | 115111 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
3,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"and",
"independent",
"contractors",
"performing",
"InsPro",
"design",
",",
"development",
",",
"implementation",
",",
"testing",
"together",
"with",
"customer",
"management",
",",
"training",
"and",
"technical",
"support",
",",
"as",
"well",
"as",
"facilities",
",",
"equipment",
"and",
"software",
"costs",
".",
"Advertising",
"and",
"other",
"marketing",
"costs",
"are",
"expensed",
"as",
"incurred",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"The",
"Company",
"maintains",
"its",
"cash",
"in",
"bank",
"deposit",
"accounts",
",",
"which",
"exceed",
"the",
"federally",
"insured",
"limits",
"as",
"provided",
"through",
"the",
"Federal",
"Deposit",
"Insurance",
"Corporation",
"(",
"“",
"FDIC",
"”",
")",
".",
"In",
"2010",
"the",
"FDIC",
"insurance",
"coverage",
"limit",
"has",
"been",
"permanently",
"increased",
"to",
"$",
"250,000",
"per",
"depositor",
",",
"per",
"institution",
"as",
"a",
"result",
"of",
"the",
"Dodd-Frank",
"Wall",
"Street",
"and",
"Consumer",
"Protection",
"Act",
".",
"Beginning",
"December",
"31",
",",
"2010",
",",
"the",
"FDIC",
"has",
"implemented",
"a",
"new",
"temporary",
"insurance",
"category",
"to",
"provide",
"unlimited",
"FDIC",
"insurance",
"coverage",
"for",
"funds",
"held",
"in",
"noninterest-bearing",
"transaction",
"accounts",
"at",
"insured",
"banks",
".",
"This",
"temporary",
"category",
"will",
"remain",
"in",
"effect",
"through",
"December",
"31",
",",
"2012",
".",
"At",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"had",
"$",
"5,211,859",
"of",
"cash",
"in",
"United",
"States",
"bank",
"deposits",
",",
"of",
"which",
"$",
"1,996,980",
"was",
"federally",
"insured",
"and",
"$",
"3,214,879",
"exceeded",
"federally",
"insured",
"limits",
".",
"The",
"following",
"table",
"lists",
"the",
"percentage",
"of",
"the",
"Company",
"’",
"s",
"revenue",
",",
"which",
"was",
"earned",
"from",
"the",
"Company",
"’",
"s",
"two",
"largest",
"InsPro",
"clients",
".",
"The",
"Company",
"accounts",
"for",
"stock",
"based",
"compensation",
"transactions",
"using",
"a",
"fair-value-based",
"method",
"and",
"recognizes",
"compensation",
"cost",
"for",
"share-based",
"payments",
"to",
"employees",
"based",
"on",
"their",
"grant-date",
"fair",
"value",
"from",
"the",
"beginning",
"of",
"the",
"fiscal",
"period",
"in",
"which",
"the",
"recognition",
"provisions",
"are",
"first",
"applied",
".",
"The",
"Company",
"classifies",
"as",
"liability",
"instruments",
"the",
"fair",
"value",
"of",
"registration",
"rights",
"agreements",
"when",
"such",
"agreements",
"(",
"i",
")",
"require",
"it",
"to",
"file",
",",
"and",
"cause",
"to",
"be",
"declared",
"effective",
"under",
"the",
"Securities",
"Act",
",",
"a",
"registration",
"statement",
"with",
"the",
"Commission",
"within",
"contractually",
"fixed",
"time",
"periods",
",",
"and",
"(",
"ii",
")",
"provide",
"for",
"the",
"payment",
"of",
"liquidating",
"damages",
"in",
"the",
"event",
"of",
"its",
"failure",
"to",
"comply",
"with",
"such",
"agreements",
"and",
"such",
"failure",
"is",
"probable",
".",
"Registration",
"rights",
"with",
"these",
"characteristics",
"are",
"accounted",
"for",
"as",
"derivative",
"financial",
"instruments",
"at",
"fair",
"value",
"and",
"contracts",
"that",
"are",
"(",
"a",
")",
"indexed",
"to",
"and",
"potentially",
"settled",
"in",
"an",
"issuer",
"'s",
"own",
"stock",
"and",
"(",
"b",
")",
"permit",
"gross",
"physical",
"or",
"net",
"share",
"settlement",
"with",
"no",
"net",
"cash",
"settlement",
"alternative",
"are",
"classified",
"as",
"equity",
"instruments",
".",
"At",
"March",
"31",
",",
"2011",
",",
"the",
"Company",
"does",
"not",
"believe",
"that",
"it",
"is",
"probable",
"that",
"the",
"Company",
"will",
"incur",
"a",
"penalty",
"in",
"connection",
"with",
"the",
"Company",
"’",
"s",
"registration",
"rights",
"agreements",
".",
"Accordingly",
"no",
"liability",
"was",
"recorded",
"as",
"of",
"March",
"31",
",",
"2011",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"In",
"April"
] |
19 | 115551 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0
] | [
",",
"2011",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"In",
"April",
"2009",
",",
"the",
"FASB",
"issued",
"guidance",
"in",
"the",
"Fair",
"Value",
"Measurements",
"and",
"Disclosures",
"Topic",
"of",
"the",
"Codification",
"on",
"determining",
"fair",
"value",
"when",
"the",
"volume",
"and",
"level",
"of",
"activity",
"for",
"an",
"asset",
"or",
"liability",
"have",
"significantly",
"decreased",
"and",
"identifying",
"transactions",
"that",
"are",
"not",
"orderly",
".",
"The",
"guidance",
"emphasizes",
"that",
"even",
"if",
"there",
"has",
"been",
"a",
"significant",
"decrease",
"in",
"the",
"volume",
"and",
"level",
"of",
"activity",
",",
"the",
"objective",
"of",
"a",
"fair",
"value",
"measurement",
"remains",
"the",
"same",
".",
"Fair",
"value",
"is",
"the",
"price",
"that",
"would",
"be",
"received",
"to",
"sell",
"an",
"asset",
"or",
"paid",
"to",
"transfer",
"a",
"liability",
"in",
"an",
"orderly",
"transaction",
"(",
"that",
"is",
",",
"not",
"a",
"forced",
"liquidation",
"or",
"distressed",
"sale",
")",
"between",
"market",
"participants",
".",
"The",
"guidance",
"provides",
"a",
"number",
"of",
"factors",
"to",
"consider",
"when",
"evaluating",
"whether",
"there",
"has",
"been",
"a",
"significant",
"decrease",
"in",
"the",
"volume",
"and",
"level",
"of",
"activity",
"for",
"an",
"asset",
"or",
"liability",
"in",
"relation",
"to",
"normal",
"market",
"activity",
".",
"In",
"addition",
",",
"when",
"transactions",
"or",
"quoted",
"prices",
"are",
"not",
"considered",
"orderly",
",",
"adjustments",
"to",
"those",
"prices",
"based",
"on",
"the",
"weight",
"of",
"available",
"information",
"may",
"be",
"needed",
"to",
"determine",
"the",
"appropriate",
"fair",
"value",
".",
"The",
"guidance",
"is",
"effective",
"for",
"interim",
"or",
"annual",
"reporting",
"periods",
"ending",
"after",
"June",
"15",
",",
"2009",
",",
"and",
"shall",
"be",
"applied",
"prospectively",
".",
"We",
"adopted",
"this",
"guidance",
"effective",
"for",
"the",
"quarter",
"ending",
"June",
"30",
",",
"2009",
".",
"There",
"is",
"no",
"impact",
"of",
"the",
"adoption",
"on",
"our",
"financial",
"statements",
"as",
"of",
"March",
"31",
",",
"2011",
".",
"In",
"April",
"2009",
",",
"FASB",
"issued",
"guidance",
"in",
"the",
"Financial",
"Instruments",
"Topic",
"of",
"the",
"Codification",
"on",
"interim",
"disclosures",
"about",
"fair",
"value",
"of",
"financial",
"instruments",
".",
"The",
"guidance",
"requires",
"disclosures",
"about",
"the",
"fair",
"value",
"of",
"financial",
"instruments",
"for",
"both",
"interim",
"reporting",
"periods",
",",
"as",
"well",
"as",
"annual",
"reporting",
"periods",
".",
"The",
"guidance",
"is",
"effective",
"for",
"all",
"interim",
"and",
"annual",
"reporting",
"periods",
"ending",
"after",
"June",
"15",
",",
"2009",
"and",
"shall",
"be",
"applied",
"prospectively",
".",
"The",
"adoption",
"of",
"this",
"guidance",
"had",
"no",
"impact",
"on",
"our",
"financial",
"statements",
"as",
"of",
"March",
"31",
",",
"2011",
".",
"In",
"May",
"2009",
",",
"FASB",
"issued",
"guidance",
"in",
"the",
"Subsequent",
"Events",
"Topic",
"of",
"the",
"Codification",
".",
"The",
"guidance",
"is",
"intended",
"to",
"establish",
"general",
"standards",
"of",
"accounting",
"for",
",",
"and",
"disclosure",
"of",
",",
"events",
"that",
"occur",
"after",
"the",
"balance",
"sheet",
"date",
"but",
"before",
"financial",
"statements",
"are",
"issued",
".",
"It",
"requires",
"the",
"disclosure",
"of",
"the",
"date",
"through",
"which",
"an",
"entity",
"has",
"evaluated",
"subsequent",
"events",
"and",
"the",
"basis",
"for",
"that",
"date",
".",
"The",
"guidance",
"is",
"effective",
"for",
"interim",
"or",
"annual",
"financial",
"periods",
"ending",
"after",
"June",
"15",
",",
"2009",
"and",
"is",
"required",
"to",
"be",
"adopted",
"prospectively",
".",
"We",
"adopted",
"this",
"guidance",
"effective",
"for",
"the",
"quarter",
"ending",
"June",
"30",
",",
"2009",
".",
"The",
"adoption",
"of",
"this",
"guidance",
"had",
"no",
"impact",
"on",
"our",
"financial",
"statements",
"as",
"of",
"March",
"31",
",",
"2011",
",",
"other",
"than",
"the",
"additional",
"disclosure",
".",
"In",
"June",
"2009",
",",
"the",
"FASB",
"issued"
] |
19 | 116021 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"as",
"of",
"March",
"31",
",",
"2011",
",",
"other",
"than",
"the",
"additional",
"disclosure",
".",
"In",
"June",
"2009",
",",
"the",
"FASB",
"issued",
"guidance",
"which",
"will",
"amend",
"the",
"Consolidation",
"Topic",
"of",
"the",
"Codification",
".",
"The",
"guidance",
"addresses",
"the",
"effects",
"of",
"eliminating",
"the",
"qualifying",
"special-purpose",
"entity",
"(",
"QSPE",
")",
"concept",
"and",
"responds",
"to",
"concerns",
"over",
"the",
"transparency",
"of",
"enterprises",
"’",
"involvement",
"with",
"variable",
"interest",
"entities",
"(",
"VIEs",
")",
".",
"The",
"guidance",
"is",
"effective",
"beginning",
"on",
"January",
"1",
",",
"2010",
".",
"We",
"do",
"not",
"expect",
"the",
"adoption",
"of",
"this",
"guidance",
"to",
"have",
"an",
"impact",
"on",
"our",
"financial",
"statements",
".",
"In",
"August",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"No.",
"2009-05",
",",
"“",
"Measuring",
"Liabilities",
"at",
"Fair",
"Value",
"”",
"(",
"ASU",
"2009-05",
")",
".",
"ASU",
"2009-05",
"amends",
"the",
"Fair",
"Value",
"Measurements",
"and",
"Disclosures",
"Topic",
"of",
"the",
"FASB",
"Accounting",
"Standards",
"Codification",
"by",
"providing",
"additional",
"guidance",
"clarifying",
"the",
"measurement",
"of",
"liabilities",
"at",
"fair",
"value",
".",
"ASU",
"2009-05",
"is",
"effective",
"for",
"us",
"for",
"the",
"reporting",
"period",
"ending",
"December",
"31",
",",
"2010",
".",
"We",
"do",
"not",
"expect",
"the",
"adoption",
"of",
"ASU",
"2009-05",
"to",
"have",
"an",
"impact",
"on",
"our",
"financial",
"statements",
".",
"In",
"October",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2009-15",
",",
"Accounting",
"for",
"Own-Share",
"Lending",
"Arrangements",
"in",
"Contemplation",
"of",
"Convertible",
"Debt",
"Issuance",
"or",
"Other",
"Financing",
".",
"This",
"Accounting",
"Standards",
"Update",
"amends",
"the",
"FASB",
"Accounting",
"Standard",
"Codification",
"for",
"EITF",
"09-1",
".",
"(",
"See",
"EITF",
"09-1",
"effective",
"date",
"below",
")",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"In",
"October",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2009-14",
",",
"Software",
"(",
"Topic",
"985",
")",
":",
"Certain",
"Revenue",
"Arrangements",
"That",
"Include",
"Software",
"Elements",
".",
"This",
"update",
"changed",
"the",
"accounting",
"model",
"for",
"revenue",
"arrangements",
"that",
"include",
"both",
"tangible",
"products",
"and",
"software",
"elements",
".",
"Effective",
"prospectively",
"for",
"revenue",
"arrangements",
"entered",
"into",
"or",
"materially",
"modified",
"in",
"fiscal",
"years",
"beginning",
"on",
"or",
"after",
"June",
"15",
",",
"2010",
".",
"Early",
"adoption",
"is",
"permitted",
".",
"The",
"Company",
"does",
"not",
"expect",
"the",
"provisions",
"of",
"ASU",
"2009-14",
"to",
"have",
"a",
"material",
"effect",
"on",
"the",
"financial",
"position",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
"of",
"the",
"Company",
".",
"In",
"October",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2009-13",
",",
"Revenue",
"Recognition",
"(",
"Topic",
"605",
")",
":",
"Multiple-Deliverable",
"Revenue",
"Arrangements",
".",
"This",
"update",
"addressed",
"the",
"accounting",
"for",
"multiple-deliverable",
"arrangements",
"to",
"enable",
"vendors",
"to",
"account",
"for",
"products",
"or",
"services",
"(",
"deliverables",
")",
"separately",
"rather",
"than",
"a",
"combined",
"unit",
"and",
"will",
"be",
"separated",
"in",
"more",
"circumstances",
"that",
"under",
"existing",
"US",
"GAAP",
"."
] |
19 | 116411 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
")",
"separately",
"rather",
"than",
"a",
"combined",
"unit",
"and",
"will",
"be",
"separated",
"in",
"more",
"circumstances",
"that",
"under",
"existing",
"US",
"GAAP",
".",
"This",
"amendment",
"has",
"eliminated",
"that",
"residual",
"method",
"of",
"allocation",
".",
"Effective",
"prospectively",
"for",
"revenue",
"arrangements",
"entered",
"into",
"or",
"materially",
"modified",
"in",
"fiscal",
"years",
"beginning",
"on",
"or",
"after",
"June",
"15",
",",
"2010",
".",
"Early",
"adoption",
"is",
"permitted",
".",
"The",
"Company",
"does",
"not",
"expect",
"the",
"provisions",
"of",
"ASU",
"2009-13",
"to",
"have",
"a",
"material",
"effect",
"on",
"the",
"financial",
"position",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
"of",
"the",
"Company",
".",
"In",
"December",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2009-17",
",",
"Consolidations",
"(",
"Topic",
"810",
")",
":",
"Improvements",
"to",
"Financial",
"Reporting",
"by",
"Enterprises",
"Involved",
"with",
"Variable",
"Interest",
"Entities",
".",
"This",
"Accounting",
"Standards",
"Update",
"amends",
"the",
"FASB",
"Accounting",
"Standards",
"Codification",
"for",
"Statement",
"167",
".",
"(",
"See",
"FAS",
"167",
"effective",
"date",
"below",
")",
".",
"In",
"December",
"2009",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2009-16",
",",
"Transfers",
"and",
"Servicing",
"(",
"Topic",
"860",
")",
":",
"Accounting",
"for",
"Transfers",
"of",
"Financial",
"Assets",
".",
"This",
"Accounting",
"Standards",
"Update",
"amends",
"the",
"FASB",
"Accounting",
"Standards",
"Codification",
"for",
"Statement",
"166",
".",
"(",
"See",
"FAS",
"166",
"effective",
"date",
"below",
")",
".",
"In",
"January",
"2010",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2010-02",
",",
"Consolidation",
"(",
"Topic",
"810",
")",
":",
"Accounting",
"and",
"Reporting",
"for",
"Decreases",
"in",
"Ownership",
"of",
"a",
"Subsidiary",
".",
"This",
"amendment",
"to",
"Topic",
"810",
"clarifies",
",",
"but",
"does",
"not",
"change",
",",
"the",
"scope",
"of",
"current",
"US",
"GAAP",
".",
"It",
"clarifies",
"the",
"decrease",
"in",
"ownership",
"provisions",
"of",
"Subtopic",
"810-10",
"and",
"removes",
"the",
"potential",
"conflict",
"between",
"guidance",
"in",
"that",
"Subtopic",
"and",
"asset",
"derecognition",
"and",
"gain",
"or",
"loss",
"recognition",
"guidance",
"that",
"may",
"exist",
"in",
"other",
"US",
"GAAP",
".",
"An",
"entity",
"will",
"be",
"required",
"to",
"follow",
"the",
"amended",
"guidance",
"beginning",
"in",
"the",
"period",
"that",
"it",
"first",
"adopts",
"FAS",
"160",
"(",
"now",
"included",
"in",
"Subtopic",
"810-10",
")",
".",
"For",
"those",
"entities",
"that",
"have",
"already",
"adopted",
"FAS",
"160",
",",
"the",
"amendments",
"are",
"effective",
"at",
"the",
"beginning",
"of",
"the",
"first",
"interim",
"or",
"annual",
"reporting",
"period",
"ending",
"on",
"or",
"after",
"December",
"15",
",",
"2009",
".",
"The",
"amendments",
"should",
"be",
"applied",
"retrospectively",
"to",
"the",
"first",
"period",
"that",
"an",
"entity",
"adopted",
"FAS",
"160",
".",
"The",
"Company",
"does",
"not",
"expect",
"the",
"provisions",
"of",
"ASU",
"2010-02",
"to",
"have",
"a",
"material",
"effect",
"on",
"the",
"financial",
"position",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
"of",
"the",
"Company",
".",
"In",
"January",
"2010",
",",
"the",
"FASB",
"issued",
"Accounting",
"Standards",
"Update",
"2010-01",
",",
"Equity",
"(",
"Topic",
"505",
")",
":",
"Accounting",
"for",
"Distributions",
"to",
"Shareholders",
"with",
"Components",
"of",
"Stock",
"and",
"Cash",
"(",
"A",
"Consensus",
"of",
"the",
"FASB",
"Emerging",
"Issues",
"Task",
"Force",
")",
".",
"This",
"amendment",
"to",
"Topic",
"505",
"clarifies",
"the",
"stock",
"portion",
"of",
"a",
"distribution",
"to",
"shareholders",
"that"
] |
19 | 116831 | [
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Issues",
"Task",
"Force",
")",
".",
"This",
"amendment",
"to",
"Topic",
"505",
"clarifies",
"the",
"stock",
"portion",
"of",
"a",
"distribution",
"to",
"shareholders",
"that",
"allows",
"them",
"to",
"elect",
"to",
"receive",
"cash",
"or",
"stock",
"with",
"a",
"limit",
"on",
"the",
"amount",
"of",
"cash",
"that",
"will",
"be",
"distributed",
"is",
"not",
"a",
"stock",
"dividend",
"for",
"purposes",
"of",
"applying",
"Topics",
"505",
"and",
"260",
".",
"Effective",
"for",
"interim",
"and",
"annual",
"periods",
"ending",
"on",
"or",
"after",
"December",
"15",
",",
"2009",
",",
"and",
"would",
"be",
"applied",
"on",
"a",
"retrospective",
"basis",
".",
"The",
"Company",
"does",
"not",
"expect",
"the",
"provisions",
"of",
"ASU",
"2010-01",
"to",
"have",
"a",
"material",
"effect",
"on",
"the",
"financial",
"position",
",",
"results",
"of",
"operations",
"or",
"cash",
"flows",
"of",
"the",
"Company",
".",
"NOTE",
"1",
"–",
"BASIS",
"OF",
"PRESENTATION",
"AND",
"SUMMARY",
"OF",
"SIGNIFICANT",
"ACCOUNTING",
"POLICIES",
"(",
"continued",
")",
"In",
"February",
"2010",
",",
"the",
"FASB",
"issued",
"ASU",
"2010-09",
",",
"which",
"addresses",
"certain",
"implementation",
"issues",
"related",
"to",
"an",
"entity",
"’",
"s",
"requirement",
"to",
"perform",
"and",
"disclose",
"subsequent",
"events",
"procedures",
".",
"The",
"ASU",
"(",
"i",
")",
"exempts",
"entities",
"that",
"file",
"their",
"financial",
"statements",
"with",
",",
"or",
"furnish",
"them",
"to",
",",
"the",
"Commission",
"from",
"disclosing",
"the",
"date",
"through",
"which",
"subsequent",
"events",
"procedures",
"have",
"been",
"performed",
"and",
"(",
"ii",
")",
"clarifies",
"the",
"circumstances",
"in",
"which",
"an",
"entity",
"’",
"s",
"financial",
"statements",
"would",
"be",
"considered",
"restated",
"and",
"in",
"which",
"the",
"entity",
"would",
"therefore",
"be",
"required",
"to",
"update",
"its",
"subsequent",
"events",
"evaluation",
"since",
"the",
"originally",
"issued",
"or",
"available",
"to",
"be",
"issued",
"financial",
"statements",
".",
"ASU",
"2010-09",
"became",
"effective",
"immediately",
"upon",
"issuance",
",",
"and",
"the",
"Company",
"adopted",
"its",
"disclosure",
"requirements",
"within",
"the",
"Form",
"10-K",
"for",
"the",
"year",
"ended",
"December",
"31",
",",
"2010",
".",
"In",
"April",
"2010",
",",
"the",
"FASB",
"issued",
"ASU",
"2010-17",
"Revenue",
"Recognition",
"–",
"Milestone",
"Method",
"(",
"Topic",
"605",
")",
":",
"Milestone",
"Method",
"of",
"Revenue",
"Recognition",
"(",
"“",
"ASU",
"2010-17",
"”",
")",
".",
"ASU",
"2010-17",
"provides",
"guidance",
"on",
"defining",
"a",
"milestone",
"and",
"determining",
"when",
"it",
"may",
"be",
"appropriate",
"to",
"apply",
"the",
"milestone",
"method",
"of",
"revenue",
"recognition",
"for",
"research",
"or",
"development",
"transactions",
".",
"Consideration",
"that",
"is",
"contingent",
"on",
"achievement",
"of",
"a",
"milestone",
"in",
"its",
"entirety",
"may",
"be",
"recognized",
"as",
"revenue",
"in",
"the",
"period",
"in",
"which",
"the",
"milestone",
"is",
"achieved",
"only",
"if",
"the",
"milestone",
"is",
"judged",
"to",
"meet",
"certain",
"criteria",
"to",
"be",
"considered",
"substantive",
".",
"Milestones",
"should",
"be",
"considered",
"substantive",
"in",
"their",
"entirety",
"and",
"may",
"not",
"be",
"bifurcated",
".",
"An",
"arrangement",
"may",
"contain",
"both",
"substantive",
"and",
"nonsubstantive",
"milestones",
",",
"and",
"each",
"milestone",
"should",
"be",
"evaluated",
"individually",
"to",
"determine",
"if",
"it",
"is",
"substantive",
".",
"ASU",
"2010-17",
"is",
"effective",
"on",
"a",
"prospective",
"basis",
"for",
"milestones",
"achieved",
"in",
"fiscal",
"years",
",",
"and",
"interim",
"periods",
"within",
"those",
"years",
",",
"beginning",
"on",
"or",
"after",
"June",
"15",
",",
"2010",
",",
"with",
"early",
"adoption",
"permitted",
".",
"We",
"adopted",
"this",
"guidance",
"effective",
"for",
"the",
"quarter",
"ending",
"June",
"30",
",",
"2010",
"and"
] |
19 | 117261 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
5,
6,
0,
5,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
",",
"with",
"early",
"adoption",
"permitted",
".",
"We",
"adopted",
"this",
"guidance",
"effective",
"for",
"the",
"quarter",
"ending",
"June",
"30",
",",
"2010",
"and",
"it",
"did",
"not",
"have",
"a",
"material",
"impact",
"on",
"our",
"consolidated",
"financial",
"statements",
".",
"In",
"July",
"2010",
",",
"the",
"FASB",
"issued",
"ASU",
"No.",
"2010-20",
",",
"Receivables",
"(",
"Topic",
"310",
")",
":",
"Disclosures",
"about",
"the",
"Credit",
"Quality",
"of",
"Financing",
"Receivables",
"and",
"the",
"Allowance",
"for",
"Credit",
"Losses",
".",
"ASU",
"2010-20",
"requires",
"additional",
"disclosures",
"about",
"the",
"credit",
"quality",
"of",
"a",
"company",
"’",
"s",
"loans",
"and",
"the",
"allowance",
"for",
"loan",
"losses",
"held",
"against",
"those",
"loans",
".",
"Company",
"will",
"need",
"to",
"disaggregate",
"new",
"and",
"existing",
"disclosures",
"based",
"on",
"how",
"it",
"develops",
"its",
"allowance",
"for",
"loan",
"losses",
"and",
"how",
"it",
"manages",
"credit",
"exposures",
".",
"Additional",
"disclosure",
"is",
"also",
"required",
"about",
"the",
"credit",
"quality",
"indicators",
"of",
"loans",
"by",
"class",
"at",
"the",
"end",
"of",
"the",
"reporting",
"period",
",",
"the",
"aging",
"of",
"the",
"past",
"due",
"loans",
",",
"information",
"about",
"troubled",
"debt",
"restructurings",
",",
"and",
"significant",
"purchases",
"and",
"sales",
"of",
"loans",
"during",
"the",
"reporting",
"period",
"by",
"class",
".",
"The",
"new",
"guidance",
"is",
"effective",
"for",
"interim",
"and",
"annual",
"periods",
"beginning",
"after",
"December",
"15",
",",
"2010",
".",
"The",
"Company",
"anticipates",
"that",
"adoption",
"of",
"these",
"additional",
"disclosures",
"will",
"not",
"have",
"a",
"material",
"effect",
"on",
"its",
"financial",
"position",
"of",
"results",
"of",
"operations",
".",
"Other",
"accounting",
"standards",
"that",
"have",
"been",
"issued",
"or",
"proposed",
"by",
"FASB",
"that",
"do",
"not",
"require",
"adoption",
"until",
"a",
"future",
"date",
"are",
"not",
"expected",
"to",
"have",
"a",
"material",
"impact",
"on",
"the",
"consolidated",
"financial",
"statements",
"upon",
"adoption",
".",
"The",
"Company",
"has",
"classified",
"its",
"former",
"telesales",
"call",
"center",
"and",
"external",
"(",
"ISG",
")",
"agent",
"produced",
"agency",
"business",
"(",
"the",
"“",
"Agency",
"Business",
"”",
")",
",",
"its",
"former",
"Insurint",
"business",
",",
"and",
"its",
"leased",
"offices",
"located",
"in",
"New",
"York",
"and",
"Florida",
"as",
"discontinued",
"operations",
".",
"The",
"financial",
"position",
"of",
"discontinued",
"operations",
"was",
"as",
"follows",
":",
"The",
"results",
"of",
"discontinued",
"operations",
"were",
"as",
"follows",
":",
"On",
"February",
"20",
",",
"2009",
",",
"the",
"Company",
"entered",
"into",
"and",
"completed",
"the",
"sale",
"of",
"the",
"Agency",
"Business",
"to",
"eHealth",
"Insurance",
"Services",
",",
"Inc.",
",",
"an",
"unaffiliated",
"third",
"party",
",",
"pursuant",
"to",
"the",
"terms",
"of",
"a",
"Client",
"Transition",
"Agreement",
"(",
"the",
"“",
"Agreement",
"”",
")",
".",
"Property",
"and",
"equipment",
"consisted",
"of",
"the",
"following",
":",
"For",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"depreciation",
"expense",
"was",
"$",
"95,034",
"and",
"$",
"93,004",
",",
"respectively",
".",
"Intangible",
"assets",
"consisted",
"of",
"the",
"following",
":",
"For",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"amortization",
"expense",
"was",
"$",
"86,684",
"and",
"$",
"138,807",
"respectively",
".",
"Amortization",
"expense",
"subsequent",
"to",
"the",
"period",
"ended",
"March",
"31",
",",
"2011",
"is",
"as",
"follows",
":",
"During",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
",",
"425,000",
"options",
"previously",
"granted",
"to",
"Warren",
"Musser",
",",
"the",
"vice",
"chairman",
"of",
"the",
"Company",
"’",
"s",
"board",
"of",
"directors",
",",
"expired"
] |
19 | 117701 | [
0,
0,
0,
0,
1,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"options",
"previously",
"granted",
"to",
"Warren",
"Musser",
",",
"the",
"vice",
"chairman",
"of",
"the",
"Company",
"’",
"s",
"board",
"of",
"directors",
",",
"expired",
"in",
"accordance",
"with",
"the",
"terms",
"of",
"the",
"stock",
"options",
".",
"The",
"Company",
"recorded",
"compensation",
"expense",
"pertaining",
"to",
"director",
"and",
"employee",
"stock",
"options",
"as",
"follows",
":",
"A",
"summary",
"of",
"the",
"Company",
"'s",
"outstanding",
"stock",
"options",
"as",
"of",
"and",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"are",
"as",
"follows",
":",
"NOTE",
"5",
"–",
"SHAREHOLDERS",
"’",
"EQUITY",
"(",
"continued",
")",
"The",
"following",
"information",
"applies",
"to",
"options",
"outstanding",
"at",
"March",
"31",
",",
"2011",
":",
"As",
"of",
"March",
"31",
",",
"2011",
",",
"there",
"were",
"30,000,000",
"shares",
"of",
"our",
"common",
"stock",
"authorized",
"to",
"be",
"issued",
"under",
"the",
"Company",
"’",
"s",
"2010",
"Equity",
"Compensation",
"Plan",
",",
"of",
"which",
"22,406,980",
"shares",
"of",
"our",
"common",
"stock",
"remain",
"available",
"for",
"future",
"stock",
"option",
"grants",
".",
"The",
"total",
"intrinsic",
"value",
"of",
"stock",
"options",
"outstanding",
"and",
"exercisable",
"as",
"of",
"March",
"31",
",",
"2011",
"was",
"$",
"0",
".",
"The",
"value",
"of",
"equity",
"compensation",
"expense",
"not",
"yet",
"expensed",
"pertaining",
"to",
"unvested",
"equity",
"compensation",
"was",
"$",
"180,383",
"as",
"of",
"March",
"31",
",",
"2011",
",",
"which",
"will",
"be",
"recognized",
"over",
"a",
"weighted",
"average",
"4.5",
"years",
"in",
"the",
"future",
".",
"NOTE",
"5",
"–",
"SHAREHOLDERS",
"’",
"EQUITY",
"(",
"continued",
")",
"On",
"January",
"10",
",",
"2011",
",",
"warrants",
"to",
"purchase",
"1,175,000",
"shares",
"of",
"the",
"Company",
"’",
"s",
"common",
"stock",
"at",
"an",
"exercise",
"price",
"of",
"$",
"1.50",
"per",
"share",
"expired",
"in",
"accordance",
"with",
"the",
"terms",
"of",
"the",
"warrants",
".",
"A",
"summary",
"of",
"the",
"status",
"of",
"the",
"Company",
"'s",
"outstanding",
"common",
"stock",
"warrants",
"as",
"of",
"and",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"are",
"as",
"follows",
":",
"The",
"following",
"information",
"applies",
"to",
"common",
"stock",
"warrants",
"outstanding",
"at",
"March",
"31",
",",
"2011",
":",
"NOTE",
"5",
"–",
"SHAREHOLDERS",
"’",
"EQUITY",
"(",
"continued",
")",
"A",
"summary",
"of",
"the",
"status",
"of",
"the",
"Company",
"'s",
"outstanding",
"preferred",
"stock",
"warrants",
"as",
"of",
"and",
"for",
"the",
"period",
"ended",
"March",
"31",
",",
"2011",
"are",
"as",
"follows",
":",
"Outstanding",
"preferred",
"stock",
"warrants",
"at",
"March",
"31",
",",
"2011",
"have",
"a",
"remaining",
"contractual",
"life",
"of",
"4.4",
"years",
".",
"InsPro",
"Technologies",
"has",
"entered",
"into",
"several",
"capital",
"lease",
"obligations",
"to",
"purchase",
"equipment",
"used",
"for",
"operations",
".",
"The",
"Company",
"has",
"the",
"option",
"to",
"purchase",
"the",
"equipment",
"at",
"the",
"end",
"of",
"the",
"lease",
"agreement",
"for",
"one",
"dollar",
".",
"The",
"underlying",
"assets",
"and",
"related",
"depreciation",
"were",
"included",
"in",
"the",
"appropriate",
"fixed",
"asset",
"category",
",",
"and",
"related",
"depreciation",
"account",
".",
"Property",
"and",
"equipment",
"includes",
"the",
"following",
"amounts",
"for",
"leases",
"that",
"have",
"been",
"capitalized",
"as",
"of",
"March",
"31",
",",
"2011",
"and",
"December",
"31",
",",
"2010",
":",
"Future",
"minimum",
"payments",
"required",
"under",
"capital",
"leases",
"at",
"March",
"31",
",",
"2011",
"are",
"as",
"follows",
":",
"The",
"Company",
"implemented",
"a",
"401",
"(",
"k",
")",
"plan",
"on",
"January",
"1",
",",
"2007",
".",
"Eligible",
"employees",
"contribute",
"to",
"the",
"401",
"(",
"k"
] |
19 | 118141 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"a",
"401",
"(",
"k",
")",
"plan",
"on",
"January",
"1",
",",
"2007",
".",
"Eligible",
"employees",
"contribute",
"to",
"the",
"401",
"(",
"k",
")",
"plan",
".",
"Employees",
"become",
"eligible",
"after",
"attaining",
"age",
"19",
"and",
"after",
"6",
"months",
"of",
"employment",
"with",
"the",
"Company",
".",
"The",
"employee",
"may",
"become",
"a",
"participant",
"of",
"the",
"401",
"(",
"k",
")",
"plan",
"on",
"the",
"first",
"day",
"of",
"the",
"month",
"following",
"the",
"completion",
"of",
"the",
"eligibility",
"requirements",
".",
"Effective",
"January",
"1",
",",
"2007",
"the",
"Company",
"implemented",
"an",
"elective",
"contribution",
"to",
"the",
"plan",
"of",
"25",
"%",
"of",
"the",
"employee",
"’",
"s",
"contribution",
"up",
"to",
"4",
"%",
"of",
"the",
"employee",
"’",
"s",
"contribution",
"(",
"the",
"“",
"Contribution",
"”",
")",
".",
"The",
"Contributions",
"are",
"subject",
"to",
"a",
"vesting",
"schedule",
"and",
"become",
"fully",
"vested",
"after",
"one",
"year",
"of",
"service",
",",
"retirement",
",",
"death",
"or",
"disability",
",",
"whichever",
"occurs",
"first",
".",
"The",
"Company",
"made",
"contributions",
"of",
"$",
"11,633",
"and",
"$",
"10,024",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
".",
"On",
"January",
"4",
",",
"2011",
",",
"the",
"Company",
"and",
"FG2200",
",",
"LLC",
",",
"agreed",
"to",
"amend",
"their",
"lease",
"whereby",
"the",
"Company",
"paid",
"to",
"FG2200",
",",
"LLC",
"$",
"16,300",
"as",
"consideration",
"to",
"shorten",
"the",
"expiration",
"of",
"the",
"lease",
"to",
"February",
"28",
",",
"2011",
",",
"and",
"to",
"amend",
"the",
"security",
"deposit",
"provisions",
"of",
"the",
"lease",
".",
"The",
"amendment",
"amended",
"the",
"security",
"deposit",
"whereby",
"the",
"Company",
"’",
"s",
"existing",
"$",
"1,000,000",
"letter",
"of",
"credit",
",",
"which",
"served",
"as",
"the",
"security",
"deposit",
"for",
"the",
"lease",
",",
"expired",
"on",
"January",
"14",
",",
"2011",
",",
"and",
"was",
"replaced",
"by",
"a",
"$",
"160,300",
"cash",
"payment",
"from",
"the",
"Company",
"to",
"FG2200",
",",
"LLC",
",",
"which",
"consisted",
"of",
"$",
"16,300",
"consideration",
"for",
"amending",
"the",
"Lease",
"and",
"a",
"$",
"150,000",
"security",
"deposit",
".",
"NOTE",
"8",
"–",
"RESTRICTED",
"CASH",
",",
"COMMITMENTS",
"AND",
"CONTINGENCIES",
"(",
"continued",
")",
"On",
"January",
"14",
",",
"2011",
",",
"the",
"Company",
"’",
"s",
"$",
"1,000,000",
"letter",
"of",
"credit",
"was",
"terminated",
"by",
"the",
"issuing",
"bank",
"at",
"the",
"request",
"of",
"the",
"Company",
"and",
"the",
"restrictions",
"on",
"the",
"restricted",
"cash",
",",
"which",
"served",
"as",
"collateral",
"and",
"was",
"included",
"in",
"restricted",
"cash",
",",
"were",
"eliminated",
"on",
"that",
"date",
".",
"On",
"February",
"5",
",",
"2011",
",",
"the",
"Company",
"’",
"s",
"$",
"151,503",
"letter",
"of",
"credit",
"was",
"terminated",
"by",
"the",
"issuing",
"bank",
"at",
"the",
"request",
"of",
"the",
"Company",
"and",
"the",
"restrictions",
"on",
"the",
"restricted",
"cash",
",",
"which",
"served",
"as",
"collateral",
"and",
"was",
"included",
"in",
"restricted",
"cash",
",",
"were",
"eliminated",
"on",
"that",
"date",
".",
"The",
"Company",
"leases",
"certain",
"real",
"and",
"personal",
"property",
"under",
"non-cancelable",
"operating",
"leases",
".",
"Rent",
"expense",
"was",
"$",
"255,783",
"and",
"$",
"311,794",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"and",
"2010",
",",
"respectively",
".",
"Management",
"has",
"evaluated",
"the",
"effects",
"of",
"all",
"events",
"subsequent",
"to",
"March",
"31",
",",
"2011",
"through",
"the",
"date",
"which",
"the",
"financial",
"statements",
"were",
"available",
"to",
"be",
"issued",
"and",
"has"
] |
19 | 118581 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"subsequent",
"to",
"March",
"31",
",",
"2011",
"through",
"the",
"date",
"which",
"the",
"financial",
"statements",
"were",
"available",
"to",
"be",
"issued",
"and",
"has",
"concluded",
"that",
"all",
"events",
"requiring",
"adjustment",
"to",
"or",
"disclosure",
"in",
"the",
"financial",
"statements",
"have",
"been",
"made",
".",
"Certain",
"of",
"the",
"statements",
"contained",
"in",
"this",
"Quarterly",
"Report",
"on",
"Form",
"10-Q",
",",
"including",
"in",
"the",
"“",
"Management",
"’",
"s",
"Discussion",
"and",
"Analysis",
"or",
"Plan",
"of",
"Operation",
"(",
"“",
"MD",
"&",
"A",
"”",
")",
"and",
"elsewhere",
"in",
"this",
"report",
"are",
"“",
"forward-looking",
"statements",
"”",
"within",
"the",
"meaning",
"of",
"Section",
"27A",
"of",
"the",
"Securities",
"Act",
"of",
"1933",
",",
"as",
"amended",
",",
"and",
"Section",
"21E",
"of",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
"(",
"the",
"“",
"Exchange",
"Act",
"”",
")",
".",
"These",
"statements",
"are",
"based",
"on",
"management",
"’",
"s",
"current",
"expectations",
"and",
"are",
"subject",
"to",
"uncertainty",
"and",
"changes",
"in",
"circumstances",
".",
"Actual",
"results",
"may",
"vary",
"materially",
"from",
"the",
"expectations",
"contained",
"in",
"the",
"forward-looking",
"statements",
".",
"The",
"forward-looking",
"statements",
"herein",
"include",
",",
"among",
"others",
",",
"statements",
"addressing",
"management",
"’",
"s",
"views",
"with",
"respect",
"to",
"future",
"financial",
"and",
"operating",
"results",
"and",
"costs",
"associated",
"with",
"the",
"Company",
"’",
"s",
"operations",
"and",
"other",
"similar",
"statements",
".",
"Various",
"factors",
",",
"including",
"competitive",
"pressures",
",",
"market",
"interest",
"rates",
",",
"changes",
"in",
"insurance",
"carrier",
"mix",
",",
"regulatory",
"changes",
",",
"customer",
"and",
"insurance",
"carrier",
"defaults",
"or",
"insolvencies",
",",
"acquisition",
"of",
"businesses",
"that",
"do",
"not",
"perform",
"as",
"we",
"expect",
"or",
"that",
"are",
"difficult",
"for",
"us",
"to",
"integrate",
"or",
"control",
",",
"adverse",
"resolution",
"of",
"any",
"contract",
"or",
"other",
"disputes",
"with",
"customers",
"and",
"insurance",
"carriers",
",",
"or",
"the",
"loss",
"of",
"one",
"or",
"more",
"key",
"insurance",
"carrier",
"relationships",
",",
"could",
"cause",
"actual",
"outcomes",
"and",
"results",
"to",
"differ",
"materially",
"from",
"those",
"described",
"in",
"forward-looking",
"statements",
".",
"The",
"words",
"“",
"may",
",",
"”",
"“",
"will",
",",
"”",
"“",
"expect",
",",
"”",
"“",
"intend",
",",
"”",
"“",
"anticipate",
",",
"”",
"“",
"estimate",
",",
"”",
"“",
"believe",
",",
"”",
"“",
"continue",
"”",
"and",
"similar",
"expressions",
"may",
"identify",
"forward-looking",
"statements",
",",
"but",
"the",
"absence",
"of",
"these",
"words",
"does",
"not",
"necessarily",
"mean",
"that",
"a",
"statement",
"is",
"not",
"forward-looking",
".",
"While",
"we",
"believe",
"that",
"we",
"have",
"a",
"reasonable",
"basis",
"for",
"each",
"forward-looking",
"statement",
"contained",
"in",
"this",
"Quarterly",
"Report",
"on",
"Form",
"10-Q",
",",
"we",
"caution",
"you",
"that",
"these",
"statements",
"are",
"based",
"on",
"a",
"combination",
"of",
"facts",
"and",
"factors",
"currently",
"known",
"by",
"us",
"and",
"projections",
"of",
"the",
"future",
"about",
"which",
"we",
"can",
"not",
"be",
"certain",
".",
"Many",
"factors",
",",
"including",
"general",
"business",
"and",
"economic",
"conditions",
"and",
"the",
"risks",
"and",
"uncertainties",
"described",
"in",
"the",
"“",
"Risk",
"Factors",
"”",
"section",
"of",
"our",
"Annual",
"Report",
"on",
"Form",
"10-K",
"for",
"the",
"fiscal",
"year",
"ended",
"December",
"31",
",",
"2010",
",",
"affect",
"our",
"ability",
"to",
"achieve",
"our",
"objectives",
".",
"As",
"a",
"result",
"of",
"these",
"factors",
",",
"we",
"can",
"not",
"assure",
"you",
"that",
"the",
"forward-looking",
"statements",
"in",
"this",
"Quarterly",
"Report",
"on"
] |
19 | 119021 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"a",
"result",
"of",
"these",
"factors",
",",
"we",
"can",
"not",
"assure",
"you",
"that",
"the",
"forward-looking",
"statements",
"in",
"this",
"Quarterly",
"Report",
"on",
"Form",
"10-Q",
"will",
"prove",
"to",
"be",
"accurate",
".",
"In",
"addition",
",",
"if",
"our",
"forward-looking",
"statements",
"prove",
"to",
"be",
"inaccurate",
",",
"the",
"inaccuracy",
"may",
"be",
"material",
".",
"In",
"light",
"of",
"the",
"significant",
"uncertainties",
"in",
"these",
"forward-looking",
"statements",
",",
"you",
"should",
"not",
"regard",
"these",
"statements",
"as",
"a",
"representation",
"or",
"warranty",
"by",
"us",
"or",
"any",
"other",
"person",
"that",
"we",
"will",
"achieve",
"our",
"objectives",
"and",
"plans",
"in",
"any",
"specified",
"time",
"frame",
",",
"if",
"at",
"all",
".",
"We",
"may",
"not",
"update",
"these",
"forward-looking",
"statements",
",",
"even",
"though",
"our",
"situation",
"may",
"change",
"in",
"the",
"future",
".",
"We",
"qualify",
"all",
"the",
"forward-looking",
"statements",
"contained",
"in",
"this",
"Quarterly",
"Report",
"on",
"Form",
"10-Q",
"by",
"the",
"foregoing",
"cautionary",
"statements",
".",
"The",
"current",
"operations",
"of",
"InsPro",
"Technologies",
"Corporation",
"(",
"the",
"“",
"Company",
"”",
",",
"“",
"we",
"”",
",",
"“",
"us",
"”",
"or",
"“",
"our",
"”",
")",
"consist",
"of",
"our",
"InsPro",
"Technologies",
",",
"LLC",
"subsidiary",
"(",
"“",
"InsPro",
"Technologies",
"”",
")",
".",
"InsPro",
"is",
"a",
"comprehensive",
",",
"web-based",
"insurance",
"administration",
"software",
"application",
".",
"InsPro",
"was",
"introduced",
"by",
"Atiam",
"Technologies",
",",
"L.P.",
"(",
"now",
"our",
"InsPro",
"Technologies",
",",
"LLC",
"subsidiary",
")",
"in",
"2004",
".",
"InsPro",
"clients",
"include",
"health",
"insurance",
"carriers",
"and",
"third",
"party",
"administrators",
".",
"Unlike",
"our",
"Insurint",
"platform",
",",
"we",
"market",
"InsPro",
"as",
"a",
"licensed",
"software",
"application",
",",
"and",
"we",
"realize",
"revenue",
"from",
"the",
"sale",
"of",
"the",
"software",
"licenses",
",",
"application",
"service",
"provider",
"fees",
",",
"software",
"maintenance",
"fees",
"and",
"professional",
"services",
".",
"Financial",
"Reporting",
"Release",
"No.",
"60",
",",
"which",
"was",
"released",
"by",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"(",
"the",
"“",
"Commission",
"”",
")",
",",
"encourages",
"all",
"companies",
"to",
"include",
"a",
"discussion",
"of",
"critical",
"accounting",
"policies",
"or",
"methods",
"used",
"in",
"the",
"preparation",
"of",
"financial",
"statements",
".",
"Our",
"consolidated",
"financial",
"statements",
"include",
"a",
"summary",
"of",
"the",
"significant",
"accounting",
"policies",
"and",
"methods",
"used",
"in",
"the",
"preparation",
"of",
"the",
"consolidated",
"financial",
"statements",
".",
"Management",
"believes",
"the",
"following",
"critical",
"accounting",
"policies",
"affect",
"the",
"significant",
"judgments",
"and",
"estimates",
"used",
"in",
"the",
"preparation",
"of",
"the",
"consolidated",
"financial",
"statements",
".",
"Use",
"of",
"Estimates",
"-",
"Management",
"'s",
"Discussion",
"and",
"Analysis",
"or",
"Plan",
"of",
"Operation",
"is",
"based",
"upon",
"the",
"Company",
"’",
"s",
"consolidated",
"financial",
"statements",
",",
"which",
"have",
"been",
"prepared",
"in",
"accordance",
"with",
"accounting",
"principles",
"generally",
"accepted",
"in",
"the",
"United",
"States",
"of",
"America",
".",
"The",
"preparation",
"of",
"these",
"consolidated",
"financial",
"statements",
"requires",
"our",
"management",
"to",
"make",
"estimates",
"and",
"judgments",
"that",
"affect",
"the",
"reported",
"amounts",
"of",
"assets",
",",
"liabilities",
",",
"revenues",
",",
"and",
"expenses",
",",
"and",
"related",
"disclosure",
"of",
"contingent",
"assets",
"and",
"liabilities",
".",
"On",
"an",
"ongoing",
"basis",
",",
"management",
"evaluates",
"these",
"estimates",
",",
"including",
"those",
"related",
"to",
"allowances",
"for",
"doubtful",
"accounts",
"receivable",
"and",
"long-lived",
"assets",
"such",
"as",
"intangible",
"assets",
".",
"Management",
"bases",
"these",
"estimates",
"on",
"historical",
"experience",
"and",
"on",
"various",
"other",
"assumptions",
"that",
"are",
"believed",
"to",
"be",
"reasonable",
"under",
"the",
"circumstances",
","
] |
19 | 119471 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"these",
"estimates",
"on",
"historical",
"experience",
"and",
"on",
"various",
"other",
"assumptions",
"that",
"are",
"believed",
"to",
"be",
"reasonable",
"under",
"the",
"circumstances",
",",
"the",
"results",
"of",
"which",
"form",
"the",
"basis",
"of",
"making",
"judgments",
"about",
"the",
"carrying",
"value",
"of",
"assets",
"and",
"liabilities",
"that",
"are",
"not",
"readily",
"apparent",
"from",
"other",
"sources",
".",
"Significant",
"estimates",
"in",
"2011",
"and",
"2010",
"include",
"the",
"allowance",
"for",
"doubtful",
"accounts",
",",
"stock-based",
"compensation",
",",
"the",
"useful",
"lives",
"of",
"property",
"and",
"equipment",
"and",
"intangible",
"assets",
",",
"accrued",
"expenses",
"pertaining",
"to",
"abandoned",
"facilities",
",",
"warrant",
"liability",
"and",
"revenue",
"recognition",
".",
"Actual",
"results",
"may",
"differ",
"from",
"these",
"estimates",
"under",
"different",
"assumptions",
"or",
"conditions",
".",
"InsPro",
"Technologies",
"offers",
"InsPro",
"on",
"a",
"licensed",
"and",
"an",
"application",
"service",
"provider",
"(",
"“",
"ASP",
"”",
")",
"basis",
".",
"An",
"InsPro",
"software",
"license",
"entitles",
"the",
"purchaser",
"a",
"perpetual",
"license",
"to",
"a",
"copy",
"of",
"the",
"InsPro",
"software",
"installed",
"at",
"a",
"single",
"client",
"location",
",",
"which",
"may",
"be",
"used",
"to",
"drive",
"a",
"production",
"and",
"model",
"office",
"instance",
"of",
"the",
"application",
".",
"The",
"ASP",
"hosting",
"service",
"enables",
"a",
"client",
"to",
"lease",
"the",
"InsPro",
"software",
",",
"paying",
"only",
"for",
"that",
"capacity",
"required",
"to",
"support",
"their",
"business",
".",
"ASP",
"clients",
"access",
"an",
"instance",
"of",
"InsPro",
"installed",
"on",
"InsPro",
"Technologies",
"’",
"servers",
"located",
"at",
"InsPro",
"Technologies",
"’",
"offices",
"or",
"at",
"a",
"third",
"party",
"’",
"s",
"site",
".",
"Software",
"maintenance",
"fees",
"apply",
"to",
"both",
"licensed",
"and",
"ASP",
"clients",
".",
"Maintenance",
"fees",
"cover",
"periodic",
"updates",
"to",
"the",
"application",
"and",
"the",
"InsPro",
"Help",
"Desk",
".",
"Professional",
"services",
"are",
"generally",
"associated",
"with",
"the",
"implementation",
"of",
"an",
"InsPro",
"instance",
"for",
"either",
"an",
"ASP",
"or",
"licensed",
"client",
",",
"and",
"cover",
"such",
"activity",
"as",
"InsPro",
"installation",
",",
"configuration",
",",
"modification",
"of",
"InsPro",
"functionality",
",",
"client",
"insurance",
"plan",
"set-up",
",",
"client",
"insurance",
"document",
"design",
"and",
"system",
"documentation",
".",
"InsPro",
"Technologies",
"revenue",
"is",
"generally",
"recognized",
"under",
"ASC",
"985-605",
".",
"For",
"software",
"arrangements",
"involving",
"multiple",
"elements",
",",
"we",
"allocate",
"revenue",
"to",
"each",
"element",
"based",
"on",
"the",
"relative",
"fair",
"value",
"or",
"the",
"residual",
"method",
",",
"as",
"applicable",
"using",
"vendor",
"specific",
"objective",
"evidence",
"to",
"determine",
"fair",
"value",
",",
"which",
"is",
"based",
"on",
"prices",
"charged",
"when",
"the",
"element",
"is",
"sold",
"separately",
".",
"Software",
"revenue",
"accounted",
"for",
"under",
"ASC",
"985-605",
"is",
"recognized",
"when",
"persuasive",
"evidence",
"of",
"an",
"arrangement",
"exists",
",",
"the",
"software",
"is",
"delivered",
"in",
"accordance",
"with",
"all",
"terms",
"and",
"conditions",
"of",
"the",
"customer",
"contracts",
",",
"the",
"fee",
"is",
"fixed",
"or",
"determinable",
"and",
"collectibility",
"is",
"probable",
".",
"Revenue",
"related",
"to",
"post-contract",
"customer",
"support",
"(",
"“",
"PCS",
"”",
")",
",",
"including",
"technical",
"support",
"and",
"unspecified",
"when-and-if",
"available",
"software",
"upgrades",
",",
"is",
"recognized",
"ratably",
"over",
"the",
"PCS",
"term",
".",
"Under",
"ASC",
"985-605",
",",
"if",
"fair",
"value",
"does",
"not",
"exist",
"for",
"any",
"undelivered",
"element",
",",
"revenue",
"is",
"not",
"recognized",
"until",
"the",
"earlier",
"of",
"(",
"i",
")",
"delivery",
"of",
"such",
"element",
"or",
"(",
"ii",
")",
"when",
"fair",
"value",
"of",
"the",
"undelivered",
"element",
"is",
"established",
",",
"unless",
"the",
"undelivered",
"element",
"is",
"a",
"service",
",",
"in"
] |
19 | 119921 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
")",
"when",
"fair",
"value",
"of",
"the",
"undelivered",
"element",
"is",
"established",
",",
"unless",
"the",
"undelivered",
"element",
"is",
"a",
"service",
",",
"in",
"which",
"case",
"revenue",
"is",
"recognized",
"as",
"the",
"service",
"is",
"performed",
"once",
"the",
"service",
"is",
"the",
"only",
"undelivered",
"element",
".",
"We",
"recognize",
"revenues",
"from",
"software",
"license",
"agreements",
"when",
"persuasive",
"evidence",
"of",
"an",
"agreement",
"exists",
",",
"delivery",
"of",
"the",
"software",
"has",
"occurred",
",",
"the",
"fee",
"is",
"fixed",
"or",
"determinable",
",",
"and",
"collectibility",
"is",
"probable",
".",
"We",
"consider",
"fees",
"relating",
"to",
"arrangements",
"with",
"payment",
"terms",
"extending",
"beyond",
"one",
"year",
"to",
"not",
"be",
"fixed",
"or",
"determinable",
"and",
"revenue",
"for",
"these",
"arrangements",
"is",
"recognized",
"as",
"payments",
"become",
"due",
"from",
"the",
"customer",
".",
"In",
"software",
"arrangements",
"that",
"include",
"more",
"than",
"one",
"InsPro",
"module",
",",
"we",
"allocate",
"the",
"total",
"arrangement",
"fee",
"among",
"the",
"modules",
"based",
"on",
"the",
"relative",
"fair",
"value",
"of",
"each",
"of",
"the",
"modules",
".",
"License",
"revenue",
"allocated",
"to",
"software",
"products",
"generally",
"is",
"recognized",
"upon",
"delivery",
"of",
"the",
"products",
"or",
"deferred",
"and",
"recognized",
"in",
"future",
"periods",
"to",
"the",
"extent",
"that",
"an",
"arrangement",
"includes",
"one",
"or",
"more",
"elements",
"to",
"be",
"delivered",
"at",
"a",
"future",
"date",
"and",
"for",
"which",
"fair",
"values",
"have",
"not",
"been",
"established",
".",
"Revenue",
"allocated",
"to",
"maintenance",
"agreements",
"is",
"recognized",
"ratably",
"over",
"the",
"maintenance",
"term",
"and",
"revenue",
"allocated",
"to",
"training",
"and",
"other",
"service",
"elements",
"is",
"recognized",
"as",
"the",
"services",
"are",
"performed",
".",
"The",
"unearned",
"portion",
"of",
"InsPro",
"Technologies",
"’",
"revenue",
",",
"which",
"is",
"revenue",
"collected",
"or",
"billed",
"but",
"not",
"yet",
"recognized",
"as",
"earned",
",",
"has",
"been",
"included",
"in",
"the",
"consolidated",
"balance",
"sheet",
"as",
"a",
"liability",
"for",
"deferred",
"revenue",
".",
"We",
"review",
"the",
"carrying",
"value",
"of",
"property",
"and",
"equipment",
"and",
"intangible",
"assets",
"for",
"impairment",
"at",
"least",
"annually",
"or",
"whenever",
"events",
"or",
"changes",
"in",
"circumstances",
"indicate",
"that",
"the",
"carrying",
"amount",
"of",
"an",
"asset",
"may",
"not",
"be",
"recoverable",
".",
"Recoverability",
"of",
"long-lived",
"assets",
"is",
"measured",
"by",
"comparison",
"of",
"its",
"carrying",
"amount",
"to",
"the",
"undiscounted",
"cash",
"flows",
"that",
"the",
"asset",
"or",
"asset",
"group",
"is",
"expected",
"to",
"generate",
".",
"If",
"such",
"assets",
"are",
"considered",
"to",
"be",
"impaired",
",",
"the",
"impairment",
"to",
"be",
"recognized",
"is",
"measured",
"by",
"the",
"amount",
"by",
"which",
"the",
"carrying",
"amount",
"of",
"the",
"property",
",",
"if",
"any",
",",
"exceeds",
"its",
"fair",
"market",
"value",
".",
"For",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2011",
"(",
"“",
"First",
"Quarter",
"2011",
"”",
")",
",",
"we",
"earned",
"revenues",
"of",
"$",
"2,342,869",
"compared",
"to",
"$",
"1,249,635",
"for",
"the",
"three",
"months",
"ended",
"March",
"31",
",",
"2010",
"(",
"“",
"First",
"Quarter",
"2010",
"”",
")",
",",
"an",
"increase",
"of",
"$",
"1,093,234",
"or",
"88",
"%",
".",
"Revenues",
"include",
"the",
"following",
":",
"Our",
"cost",
"of",
"revenues",
"for",
"First",
"Quarter",
"2011",
"was",
"$",
"1,658,861",
"as",
"compared",
"to",
"$",
"1,758,408",
"for",
"First",
"Quarter",
"2010",
"for",
"an",
"decrease",
"of",
"$",
"99,547",
"or",
"6",
"%",
"as",
"compared",
"to",
"First",
"Quarter",
"2010",
".",
"Cost",
"of",
"revenues",
"consisted",
"of",
"the",
"following",
":",
"As",
"a"
] |
19 | 120361 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"or",
"6",
"%",
"as",
"compared",
"to",
"First",
"Quarter",
"2010",
".",
"Cost",
"of",
"revenues",
"consisted",
"of",
"the",
"following",
":",
"As",
"a",
"result",
"of",
"the",
"aforementioned",
"factors",
",",
"we",
"reported",
"a",
"gross",
"profit",
"of",
"$",
"684,008",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"a",
"gross",
"loss",
"of",
"$",
"508,773",
"in",
"First",
"Quarter",
"2010",
".",
"Our",
"selling",
",",
"general",
"and",
"administrative",
"expenses",
"for",
"First",
"Quarter",
"2011",
"was",
"$",
"1,185,717",
"as",
"compared",
"to",
"$",
"1,451,517",
"for",
"First",
"Quarter",
"2010",
"for",
"a",
"decrease",
"of",
"$",
"265,800",
"or",
"18",
"%",
"as",
"compared",
"to",
"First",
"Quarter",
"2010",
".",
"Selling",
",",
"marketing",
"and",
"administrative",
"expenses",
"consisted",
"of",
"the",
"following",
":",
"In",
"First",
"Quarter",
"2011",
"we",
"incurred",
"salaries",
",",
"employee",
"benefits",
"and",
"related",
"taxes",
"of",
"$",
"653,122",
"as",
"compared",
"to",
"$",
"596,009",
"for",
"First",
"Quarter",
"2010",
",",
"an",
"increase",
"of",
"$",
"57,113",
"or",
"10",
"%",
".",
"Salaries",
",",
"commission",
"and",
"related",
"taxes",
"consisted",
"of",
"the",
"following",
":",
"Advertising",
"and",
"other",
"marketing",
"in",
"First",
"Quarter",
"2011",
"was",
"$",
"23,477",
"as",
"compared",
"to",
"$",
"57,343",
"in",
"First",
"Quarter",
"2010",
".",
"The",
"decrease",
"is",
"the",
"result",
"of",
"a",
"non",
"recurring",
"finders",
"’",
"fee",
"payable",
"to",
"a",
"third",
"party",
"in",
"the",
"First",
"Quarter",
"of",
"2010",
"pertaining",
"to",
"signing",
"of",
"a",
"new",
"client",
".",
"Depreciation",
"and",
"amortization",
"expense",
"consisted",
"of",
"the",
"following",
":",
"In",
"First",
"Quarter",
"2011",
"we",
"incurred",
"rent",
",",
"utilities",
",",
"telephone",
"and",
"communications",
"expense",
"of",
"$",
"97,448",
"as",
"compared",
"to",
"$",
"75,243",
"in",
"First",
"Quarter",
"2010",
".",
"The",
"increase",
"is",
"primarily",
"attributable",
"to",
"increased",
"utilities",
"and",
"telecommunications",
"costs",
".",
"In",
"First",
"Quarter",
"2011",
"we",
"incurred",
"professional",
"fees",
"of",
"$",
"104,537",
"as",
"compared",
"to",
"$",
"347,997",
"in",
"First",
"Quarter",
"2010",
".",
"The",
"decrease",
"in",
"professional",
"fees",
"is",
"attributable",
"to",
"legal",
"costs",
"incurred",
"in",
"connection",
"with",
"settled",
"litigation",
"with",
"certain",
"shareholders",
"in",
"the",
"First",
"Quarter",
"of",
"2010",
"and",
"to",
"a",
"lesser",
"extent",
"costs",
"incurred",
"in",
"connection",
"with",
"the",
"Company",
"’",
"s",
"rights",
"offering",
"incurred",
"in",
"the",
"First",
"Quarter",
"2010",
".",
"In",
"First",
"Quarter",
"2011",
"we",
"incurred",
"other",
"general",
"and",
"administrative",
"expenses",
"of",
"$",
"125,415",
"as",
"compared",
"to",
"$",
"143,114",
"in",
"First",
"Quarter",
"2010",
".",
"The",
"decrease",
"is",
"the",
"result",
"of",
"lower",
"computer",
"processing",
"costs",
"as",
"a",
"result",
"of",
"cost",
"cutting",
"initiatives",
".",
"Other",
"general",
"and",
"administrative",
"expense",
"includes",
"office",
"expenses",
",",
"travel",
"and",
"entertainment",
"pertaining",
"to",
"sales",
"and",
"marketing",
"activities",
",",
"corporate",
"insurance",
"costs",
"and",
"computer",
"hardware",
"and",
"software",
"costs",
".",
"As",
"a",
"result",
"of",
"the",
"aforementioned",
"factors",
",",
"we",
"reported",
"a",
"loss",
"from",
"operations",
"of",
"$",
"501,709",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"a",
"loss",
"from",
"operations",
"of",
"$",
"1,960,290",
"in",
"First",
"Quarter",
"2010",
".",
"Results",
"from",
"discontinued",
"operations",
"were",
"as",
"follows",
":",
"For",
"First",
"Quarter",
"2011",
"we",
"earned",
"revenues",
"in",
"discontinued",
"operations",
"of",
"$",
"407,992",
"compared",
"to",
"$",
"1,395,731",
"in"
] |
19 | 120791 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
3,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"follows",
":",
"For",
"First",
"Quarter",
"2011",
"we",
"earned",
"revenues",
"in",
"discontinued",
"operations",
"of",
"$",
"407,992",
"compared",
"to",
"$",
"1,395,731",
"in",
"the",
"First",
"Quarter",
"2010",
",",
"a",
"decrease",
"of",
"$",
"987,739",
"or",
"71",
"%",
".",
"Revenues",
"include",
"the",
"following",
":",
"Total",
"operating",
"expenses",
"of",
"discontinued",
"operations",
"for",
"First",
"Quarter",
"2011",
"was",
"$",
"188,972",
"as",
"compared",
"to",
"$",
"364,576",
"for",
"First",
"Quarter",
"2010",
"for",
"a",
"decrease",
"of",
"$",
"175,604",
"or",
"48",
"%",
"as",
"compared",
"to",
"First",
"Quarter",
"2010",
".",
"The",
"primary",
"reason",
"for",
"the",
"decrease",
"is",
"attributable",
"to",
"the",
"sale",
"of",
"Insurint",
"and",
"the",
"cessation",
"of",
"activities",
"for",
"Insurint",
"subsequent",
"to",
"March",
"31",
",",
"2010",
".",
"As",
"a",
"result",
"of",
"the",
"aforementioned",
"factors",
",",
"we",
"reported",
"a",
"gain",
"from",
"discontinued",
"operations",
"of",
"$",
"219,020",
"or",
"$",
"0.01",
"gain",
"from",
"discontinued",
"operations",
"basic",
"and",
"$",
"0.00",
"diluted",
"per",
"share",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"a",
"gain",
"from",
"discontinued",
"operations",
"of",
"$",
"1,031,155",
"or",
"$",
"0.03",
"gain",
"from",
"discontinued",
"operations",
"basic",
"and",
"diluted",
"per",
"share",
"in",
"First",
"Quarter",
"2010",
".",
"Other",
"income",
"(",
"expenses",
")",
"In",
"First",
"Quarter",
"2011",
"we",
"recognized",
"a",
"gain",
"on",
"change",
"in",
"fair",
"value",
"of",
"warrants",
"liabilities",
"of",
"$",
"309,294",
"as",
"compared",
"to",
"a",
"gain",
"of",
"$",
"974,468",
"in",
"the",
"First",
"Quarter",
"2010",
".",
"The",
"gain",
"in",
"both",
"First",
"Quarter",
"2011",
"and",
"First",
"Quarter",
"2010",
"represents",
"the",
"mark",
"to",
"market",
"adjustments",
"for",
"the",
"change",
"in",
"fair",
"value",
"of",
"warrants",
",",
"which",
"contain",
"provisions",
"that",
"adjust",
"the",
"exercise",
"price",
"of",
"these",
"warrants",
"in",
"the",
"event",
"we",
"issue",
"our",
"common",
"stock",
"or",
"other",
"securities",
"convertible",
"into",
"our",
"common",
"stock",
"at",
"price",
"lower",
"than",
"the",
"exercise",
"price",
"of",
"these",
"warrants",
".",
"Interest",
"income",
"is",
"attributable",
"to",
"interest-bearing",
"cash",
"deposits",
".",
"The",
"decrease",
"in",
"interest",
"income",
"is",
"the",
"result",
"of",
"a",
"decline",
"in",
"interest",
"rates",
"and",
"a",
"decline",
"in",
"cash",
"balances",
".",
"Interest",
"expense",
"of",
"is",
"lower",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"the",
"First",
"Quarter",
"of",
"2010",
"as",
"a",
"result",
"of",
"the",
"repayment",
"of",
"our",
"secured",
"promissory",
"note",
"with",
"the",
"Co-Investment",
"Fund",
"II",
",",
"L.",
"P.",
",",
"A",
"Delaware",
"limited",
"partnership",
"(",
"“",
"Co-Investment",
"”",
")",
",",
"in",
"the",
"fourth",
"quarter",
"of",
"2010",
"and",
"the",
"elimination",
"of",
"interest",
"expense",
"on",
"the",
"Secured",
"Note",
".",
"Net",
"income",
"(",
"loss",
")",
"As",
"a",
"result",
"of",
"these",
"factors",
"discussed",
"above",
",",
"we",
"reported",
"a",
"net",
"income",
"of",
"$",
"27,641",
"or",
"$",
"0.00",
"loss",
"basic",
"and",
"diluted",
"per",
"share",
"and",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"a",
"net",
"loss",
"of",
"$",
"2,954",
"or",
"$",
"0.00",
"loss",
"basic",
"and",
"diluted",
"per",
"share",
"in",
"First",
"Quarter",
"2010",
".",
"At",
"March",
"31",
",",
"2011",
",",
"we",
"had",
"a",
"cash",
"balance",
"of",
"$",
"5,211,859",
"and",
"working",
"capital",
"of",
"$",
"4,552,600",
".",
"Net",
"cash",
"used",
"by",
"operations",
"was"
] |
19 | 121221 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"had",
"a",
"cash",
"balance",
"of",
"$",
"5,211,859",
"and",
"working",
"capital",
"of",
"$",
"4,552,600",
".",
"Net",
"cash",
"used",
"by",
"operations",
"was",
"$",
"278,668",
"in",
"First",
"Quarter",
"2011",
"as",
"compared",
"to",
"$",
"853,841",
"in",
"First",
"Quarter",
"2010",
".",
"The",
"improvement",
"in",
"cash",
"flow",
"from",
"operations",
"was",
"the",
"result",
"of",
"Increases",
"in",
"deferred",
"revenue",
"of",
"$",
"809,613",
",",
"which",
"is",
"primarily",
"the",
"result",
"of",
"the",
"collection",
"of",
"an",
"deposit",
"on",
"a",
"license",
"fee",
"payment",
"and",
"to",
"a",
"lesser",
"extent",
"the",
"collection",
"of",
"annual",
"maintenance",
"fees",
"in",
"First",
"Quarter",
"2011",
"partially",
"offset",
"by",
"the",
"recognition",
"of",
"license",
"fee",
"revenue",
"in",
"the",
"First",
"Quarter",
"2011",
",",
"which",
"was",
"collected",
"prior",
"to",
"2011",
".",
"Also",
"impacting",
"the",
"improvement",
"in",
"our",
"cash",
"flow",
"from",
"operations",
"was",
"our",
"net",
"income",
"of",
"$",
"27,641",
"in",
"the",
"First",
"Quarter",
"of",
"2011",
"as",
"compared",
"to",
"our",
"net",
"loss",
"of",
"$",
"2,954",
"in",
"the",
"First",
"Quarter",
"of",
"2010",
"and",
":",
"In",
"addition",
"to",
"cash",
"used",
"in",
"operating",
"activities",
"we",
"incurred",
"the",
"following",
"non",
"cash",
"gain",
"and",
"expenses",
"in",
"2011",
",",
"which",
"were",
"included",
"in",
"our",
"net",
"income",
"(",
"loss",
")",
",",
"including",
":",
"Net",
"cash",
"used",
"by",
"investing",
"activities",
"in",
"the",
"First",
"Quarter",
"2011",
"was",
"$",
"29,816",
"as",
"compared",
"to",
"$",
"110,363",
"in",
"the",
"First",
"Quarter",
"2010",
".",
"Investing",
"activities",
"pertain",
"to",
"the",
"purchase",
"of",
"property",
"and",
"equipment",
"supporting",
"current",
"and",
"future",
"operations",
".",
"Net",
"cash",
"provided",
"by",
"financing",
"activities",
"in",
"the",
"First",
"Quarter",
"2011",
"was",
"$",
"1,091,317",
"as",
"compared",
"to",
"$",
"1,200,040",
"in",
"the",
"First",
"Quarter",
"2010",
".",
"We",
"do",
"not",
"currently",
"have",
"any",
"relationships",
"with",
"unconsolidated",
"entities",
"or",
"financial",
"partnerships",
",",
"such",
"as",
"entities",
"referred",
"to",
"as",
"structured",
"finance",
"or",
"special",
"purpose",
"entities",
",",
"which",
"would",
"have",
"been",
"established",
"for",
"the",
"purpose",
"of",
"facilitating",
"off-balance",
"sheet",
"or",
"other",
"contractually",
"narrow",
"or",
"limited",
"purposes",
".",
"(",
"a",
")",
"Evaluation",
"of",
"Disclosure",
"Controls",
"and",
"Procedures",
".",
"Our",
"management",
"is",
"responsible",
"for",
"establishing",
"and",
"maintaining",
"adequate",
"internal",
"control",
"over",
"financial",
"reporting",
"for",
"the",
"Company",
".",
"Under",
"the",
"supervision",
"of",
"our",
"Chief",
"Executive",
"Officer",
"and",
"Chief",
"Financial",
"Officer",
",",
"our",
"management",
"conducted",
"an",
"assessment",
"of",
"the",
"effectiveness",
"of",
"our",
"disclosure",
"controls",
"and",
"procedures",
"(",
"as",
"such",
"term",
"is",
"defined",
"in",
"Rules",
"13a-15",
"(",
"e",
")",
"and",
"15d-15",
"(",
"e",
")",
"under",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
")",
"as",
"of",
"the",
"end",
"of",
"the",
"period",
"covered",
"by",
"this",
"report",
".",
"Based",
"on",
"the",
"results",
"of",
"such",
"assessment",
",",
"management",
"have",
"concluded",
"that",
"the",
"our",
"disclosure",
"controls",
"and",
"procedures",
"as",
"of",
"the",
"end",
"of",
"the",
"period",
"covered",
"by",
"this",
"report",
"have",
"been",
"designed",
"and",
"are",
"functioning",
"effectively",
"to",
"provide",
"reasonable",
"assurance",
"that",
"the",
"information",
"required",
"to",
"be",
"disclosed",
"by",
"us",
"in",
"reports",
"filed",
"under",
"the",
"Securities",
"Exchange",
"Act",
"of",
"1934",
",",
"as",
"amended",
",",
"is",
"recorded",
",",
"processed",
",",
"summarized",
"and",
"reported",
"within",
"the",
"time",
"periods",
"specified",
"in",
"the",
"Commission",
"’",
"s"
] |
19 | 121671 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"amended",
",",
"is",
"recorded",
",",
"processed",
",",
"summarized",
"and",
"reported",
"within",
"the",
"time",
"periods",
"specified",
"in",
"the",
"Commission",
"’",
"s",
"rules",
"and",
"is",
"accumulated",
"and",
"communicated",
"to",
"management",
",",
"including",
"our",
"principal",
"executive",
"and",
"principal",
"financial",
"officers",
",",
"or",
"person",
"performing",
"similar",
"functions",
",",
"as",
"appropriate",
"to",
"allow",
"timely",
"decisions",
"regarding",
"required",
"disclosure",
".",
"A",
"control",
"system",
",",
"no",
"matter",
"how",
"well",
"conceived",
"and",
"operated",
",",
"can",
"provide",
"only",
"reasonable",
",",
"not",
"absolute",
",",
"assurance",
"that",
"the",
"objectives",
"of",
"the",
"control",
"system",
"are",
"met",
".",
"Because",
"of",
"the",
"inherent",
"limitations",
"in",
"all",
"control",
"systems",
",",
"no",
"evaluation",
"of",
"controls",
"can",
"provide",
"absolute",
"assurance",
"that",
"all",
"control",
"issues",
"and",
"instances",
"of",
"fraud",
",",
"if",
"any",
",",
"within",
"the",
"Company",
"have",
"been",
"detected",
".",
"The",
"design",
"of",
"any",
"system",
"of",
"controls",
"also",
"is",
"based",
"in",
"part",
"upon",
"certain",
"assumptions",
"about",
"the",
"likelihood",
"of",
"future",
"events",
",",
"and",
"there",
"can",
"be",
"no",
"assurance",
"that",
"any",
"design",
"will",
"succeed",
"in",
"achieving",
"its",
"stated",
"goals",
"under",
"all",
"potential",
"future",
"conditions",
";",
"over",
"time",
",",
"control",
"may",
"become",
"inadequate",
"because",
"of",
"changes",
"in",
"conditions",
",",
"or",
"the",
"degree",
"of",
"compliance",
"with",
"the",
"policies",
"or",
"procedures",
"may",
"deteriorate",
".",
"Because",
"of",
"the",
"inherent",
"limitations",
"in",
"a",
"cost-effective",
"control",
"system",
",",
"misstatements",
"due",
"to",
"error",
"or",
"fraud",
"may",
"occur",
"and",
"not",
"be",
"detected",
".",
"(",
"b",
")",
"Change",
"in",
"Internal",
"Control",
"over",
"Financial",
"Reporting",
".",
"There",
"have",
"not",
"been",
"any",
"changes",
"in",
"our",
"internal",
"control",
"over",
"financial",
"reporting",
"during",
"our",
"most",
"recent",
"fiscal",
"quarter",
"that",
"have",
"materially",
"affected",
",",
"or",
"are",
"reasonably",
"likely",
"to",
"materially",
"affect",
",",
"the",
"Company",
"’",
"s",
"internal",
"control",
"over",
"financial",
"reporting",
".",
"We",
"are",
"involved",
"in",
"various",
"investigations",
",",
"claims",
"and",
"lawsuits",
"arising",
"in",
"the",
"normal",
"conduct",
"of",
"our",
"business",
",",
"none",
"of",
"which",
",",
"in",
"our",
"opinion",
",",
"will",
"harm",
"our",
"business",
".",
"We",
"can",
"not",
"assure",
"that",
"we",
"will",
"prevail",
"in",
"any",
"litigation",
".",
"Regardless",
"of",
"the",
"outcome",
",",
"any",
"litigation",
"may",
"require",
"us",
"to",
"incur",
"significant",
"litigation",
"expense",
"and",
"may",
"result",
"in",
"significant",
"diversion",
"of",
"our",
"attention",
".",
"*",
"Filed",
"herewith",
".",
"†",
"Furnished",
"herewith",
".",
"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",
"thereunto",
"duly",
"authorized",
".",
"(",
"Principal",
"Executive",
"and",
"Financial",
"Officer",
")",
"*",
"Filed",
"herewith",
".",
"†",
"Furnished",
"herewith",
".",
"I",
",",
"Anthony",
"R.",
"Verdi",
",",
"certify",
"that",
":",
"I",
",",
"Anthony",
"R.",
"Verdi",
",",
"certify",
"that",
":",
"In",
"connection",
"with",
"the",
"Quarterly",
"Report",
"of",
"InsPro",
"Technologies",
"Corporation",
"(",
"the",
"``",
"Company",
"''",
")",
"on",
"Form",
"10-Q",
"for",
"the",
"fiscal",
"quarter",
"ended",
"March",
"31",
",",
"2010",
"as",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"on",
"the",
"date",
"hereof",
"(",
"the",
"``",
"Report",
"''",
")",
",",
"I",
",",
"Anthony",
"R.",
"Verdi",
",",
"Chief",
"Executive",
"Officer",
"of",
"the",
"Company",
",",
"certify",
"that",
",",
"based",
"on",
"my",
"knowledge",
":",
"("
] |
19 | 122131 | [
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"Anthony",
"R.",
"Verdi",
",",
"Chief",
"Executive",
"Officer",
"of",
"the",
"Company",
",",
"certify",
"that",
",",
"based",
"on",
"my",
"knowledge",
":",
"(",
"2",
")",
"The",
"information",
"contained",
"in",
"the",
"Report",
"fairly",
"presents",
",",
"in",
"all",
"material",
"respects",
",",
"the",
"financial",
"condition",
"and",
"results",
"of",
"operations",
"of",
"the",
"Company",
".",
"In",
"connection",
"with",
"the",
"Quarterly",
"Report",
"of",
"InsPro",
"Technologies",
"Corporation",
"(",
"the",
"``",
"Company",
"''",
")",
"on",
"Form",
"10-Q",
"for",
"the",
"fiscal",
"quarter",
"ended",
"March",
"31",
",",
"2011",
"as",
"filed",
"with",
"the",
"Securities",
"and",
"Exchange",
"Commission",
"on",
"the",
"date",
"hereof",
"(",
"the",
"``",
"Report",
"''",
")",
",",
"I",
",",
"Anthony",
"R.",
"Verdi",
",",
"Chief",
"Financial",
"Officer",
"of",
"the",
"Company",
",",
"certify",
",",
"based",
"on",
"my",
"knowledge",
":",
"(",
"2",
")",
"The",
"information",
"contained",
"in",
"the",
"Report",
"fairly",
"presents",
",",
"in",
"all",
"material",
"respects",
",",
"the",
"financial",
"condition",
"and",
"results",
"of",
"operations",
"of",
"the",
"Company",
"."
] |
20 | 122274 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
1,
2,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
1,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
3,
4,
4,
4,
0,
0,
5,
0,
0,
0,
0,
0,
0,
0,
1,
2,
2,
2,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"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",
":",
"Item",
"5.02",
"Departure",
"of",
"Directors",
"or",
"Certain",
"Officers",
";",
"Election",
"of",
"Directors",
";",
"Appointment",
"of",
"Certain",
"Officers",
";",
"Compensatory",
"Arrangements",
"of",
"Certain",
"Officers",
".",
"On",
"June",
"23",
",",
"2011",
",",
"EMS",
"Technologies",
",",
"Inc.",
"(",
"the",
"Company",
")",
"and",
"Gary",
"B",
".",
"Shell",
",",
"the",
"Company",
"s",
"Senior",
"Vice",
"President",
",",
"Chief",
"Financial",
"Officer",
"and",
"Treasurer",
",",
"entered",
"into",
"an",
"Amended",
"and",
"Restated",
"Executive",
"Protection",
"Agreement",
"(",
"the",
"Amended",
"EPA",
")",
".",
"The",
"Amended",
"EPA",
"includes",
"a",
"new",
"non-compete",
"provision",
"that",
"prohibits",
"Mr.",
"Shell",
"from",
"competing",
"with",
"the",
"Company",
"for",
"six",
"months",
"following",
"a",
"termination",
"of",
"his",
"employment",
"for",
"any",
"reason",
".",
"In",
"connection",
"with",
"the",
"addition",
"of",
"the",
"non-compete",
",",
"the",
"Amended",
"EPA",
"allocates",
"$",
"75,000",
"of",
"any",
"payments",
"ultimately",
"paid",
"to",
"Mr.",
"Shell",
"under",
"the",
"Amended",
"EPA",
"as",
"consideration",
"for",
"the",
"non-compete",
".",
"This",
"description",
"is",
"qualified",
"in",
"its",
"entirety",
"by",
"reference",
"to",
"the",
"Amended",
"EPA",
",",
"a",
"copy",
"of",
"which",
"is",
"attached",
"hereto",
"as",
"Exhibit",
"10.1",
"and",
"incorporated",
"by",
"reference",
"herein",
".",
"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",
".",
"EMS",
"TECHNOLOGIES",
",",
"INC.",
"THIS",
"AGREEMENT",
",",
"as",
"amended",
"and",
"restated",
"effective",
"as",
"of",
"the",
"23rd",
"day",
"of",
"June",
",",
"2011",
",",
"by",
"and",
"between",
"EMS",
"TECHNOLOGIES",
",",
"INC.",
",",
"a",
"Georgia",
"corporation",
"(",
"the",
"Company",
")",
",",
"and",
"Gary",
"B",
".",
"Shell",
"(",
"the",
"Executive",
")",
",",
"supersedes",
"and",
"replaces",
"entirely",
"any",
"and",
"all",
"previous",
"agreements",
"between",
"the",
"Company",
"and",
"Executive",
"that",
"provides",
"Executive",
"with",
"post-termination",
"compensation",
",",
"following",
"a",
"change",
"in",
"the",
"control",
"of",
"the",
"Company",
",",
"of",
"a",
"nature",
"or",
"in",
"amounts",
"not",
"otherwise",
"provided",
"under",
"the",
"terms",
"of",
"programs",
"and",
"policies",
"applicable",
"to",
"the",
"Company",
"s",
"employees",
"generally",
".",
"WHEREAS",
",",
"the",
"Company",
"wishes",
"to",
"assure",
"both",
"itself",
"and",
"its",
"key",
"employees",
"of",
"continuity",
"of",
"management",
"and",
"objective",
"judgment",
"in",
"the",
"event",
"of",
"any",
"Change",
"in",
"Control",
"(",
"as",
"defined",
"below",
")",
"of",
"the",
"Company",
"and",
"to",
"provide",
"certain",
"other",
"benefits",
",",
"and",
"the",
"Executive",
"is",
"a",
"key",
"employee",
"of",
"the",
"Company",
"and",
"an",
"integral",
"part",
"of",
"its",
"management",
";",
"NOW",
",",
"THEREFORE",
",",
"for",
"and",
"in",
"consideration",
"of",
"the",
"premises",
"and",
"the",
"mutual",
"covenants",
"herein",
"contained",
",",
"the",
"parties",
"hereby",
"agree",
"as",
"follows",
":",
"I",
".",
"TERM",
"OF",
"AGREEMENT",
".",
"This",
"Agreement",
"shall",
"be",
"effective",
"immediately",
"upon",
"its",
"execution",
"by",
"the",
"parties",
"hereto",
".",
"The",
"term",
"of",
"this",
"Agreement",
"shall",
"be",
"for",
"a",
"rolling",
",",
"three-year",
"period"
] |
20 | 122701 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"its",
"execution",
"by",
"the",
"parties",
"hereto",
".",
"The",
"term",
"of",
"this",
"Agreement",
"shall",
"be",
"for",
"a",
"rolling",
",",
"three-year",
"period",
"commencing",
"on",
"the",
"date",
"hereof",
",",
"and",
"shall",
"be",
"deemed",
"automatically",
"(",
"without",
"further",
"action",
"by",
"either",
"the",
"Company",
"or",
"the",
"Executive",
")",
"to",
"extend",
"each",
"day",
"for",
"an",
"additional",
"day",
"such",
"that",
"the",
"remaining",
"term",
"of",
"this",
"Agreement",
"shall",
"continue",
"to",
"be",
"three",
"years",
".",
"The",
"foregoing",
"notwithstanding",
",",
"this",
"Agreement",
"shall",
"immediately",
"cease",
"to",
"be",
"effective",
"and",
"shall",
"terminate",
"if",
"the",
"Executive",
"ceases",
"to",
"be",
"employed",
"by",
"the",
"Company",
",",
"at",
"any",
"time",
"before",
"a",
"Change",
"in",
"Control",
"(",
"as",
"defined",
"below",
")",
"has",
"occurred",
",",
"in",
"a",
"corporate",
"officer",
"position",
"of",
"vice",
"president",
"or",
"higher",
"position",
";",
"provided",
",",
"however",
",",
"such",
"cessation",
"of",
"the",
"Executive",
"s",
"employment",
"(",
"i",
")",
"was",
"not",
"at",
"the",
"request",
"of",
"a",
"third",
"party",
"who",
"has",
"indicated",
"an",
"intention",
"or",
"taken",
"steps",
"reasonably",
"calculated",
"to",
"effect",
"a",
"Change",
"in",
"Control",
",",
"(",
"ii",
")",
"did",
"not",
"otherwise",
"occur",
"in",
"connection",
"with",
"a",
"Change",
"in",
"Control",
"that",
"in",
"fact",
"occurs",
",",
"or",
"(",
"iii",
")",
"did",
"not",
"occur",
"in",
"connection",
"with",
"a",
"Board-authorized",
"plan",
"for",
",",
"or",
"Board-authorized",
"implementation",
"efforts",
"with",
"respect",
"to",
",",
"a",
"Change",
"in",
"Control",
"(",
"whether",
"or",
"not",
"such",
"Change",
"in",
"Control",
"in",
"fact",
"occurs",
")",
".",
"Board",
"",
"The",
"Board",
"of",
"Directors",
"of",
"the",
"Company",
",",
"or",
"its",
"successor",
".",
"Cause",
"",
"The",
"term",
"Cause",
"as",
"used",
"herein",
"shall",
"mean",
":",
"(",
"i",
")",
"any",
"act",
"that",
"constitutes",
",",
"on",
"the",
"part",
"of",
"the",
"Executive",
",",
"(",
"a",
")",
"fraud",
",",
"dishonesty",
",",
"gross",
"negligence",
",",
"or",
"willful",
"misconduct",
"and",
"(",
"b",
")",
"that",
"directly",
"results",
"in",
"material",
"injury",
"to",
"the",
"Company",
",",
"or",
"(",
"ii",
")",
"the",
"Executive",
"s",
"conviction",
"of",
"a",
"felony",
"or",
"crime",
"involving",
"moral",
"turpitude",
".",
"events",
"or",
"circumstances",
"constituting",
"Cause",
"to",
"the",
"reasonable",
"satisfaction",
"of",
"the",
"Company",
".",
"A",
"termination",
"for",
"Cause",
"based",
"on",
"clause",
"(",
"ii",
")",
"above",
"shall",
"take",
"effect",
"immediately",
"upon",
"giving",
"of",
"the",
"termination",
"notice",
".",
"Change",
"in",
"Control",
"",
"The",
"term",
"Change",
"in",
"Control",
"as",
"used",
"herein",
"shall",
"mean",
"the",
"occurrence",
"of",
"one",
"of",
"the",
"following",
":",
"(",
"iv",
")",
"the",
"occurrence",
"of",
"any",
"other",
"event",
"or",
"circumstance",
"which",
"is",
"not",
"covered",
"by",
"(",
"i",
")",
"through",
"(",
"iii",
")",
"above",
"which",
"the",
"Board",
"determines",
"affects",
"control",
"of",
"the",
"Company",
"and",
"constitutes",
"a",
"Change",
"in",
"Control",
"for",
"purposes",
"of",
"this",
"Agreement",
".",
"Disability",
"",
"The",
"term",
"Disability",
"shall",
"mean",
"the",
"Executive",
"s",
"inability",
"as",
"a",
"result",
"of",
"physical",
"or",
"mental",
"incapacity",
"to",
"substantially",
"perform",
"his",
"or",
"her",
"duties",
"for",
"the",
"Company",
"on",
"a",
"full-time",
"basis",
"for",
"a",
"period",
"of",
"six",
"months",
".",
"Excess",
"Severance",
"Payment",
"",
"The",
"term",
"Excess",
"Severance",
"Payment",
"shall",
"have",
"the",
"same",
"meaning",
"as",
"the",
"term",
"excess",
"parachute",
"payment",
"defined",
"in",
"Section",
"280G",
"(",
"b",
")",
"(",
"l",
")",
"of",
"the",
"Code",
".",
"Severance",
"Payment",
"",
"The",
"term",
"Severance",
"Payment",
"shall",
"have",
"the",
"same"
] |
20 | 123171 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"b",
")",
"(",
"l",
")",
"of",
"the",
"Code",
".",
"Severance",
"Payment",
"",
"The",
"term",
"Severance",
"Payment",
"shall",
"have",
"the",
"same",
"meaning",
"as",
"the",
"term",
"parachute",
"payment",
"defined",
"in",
"Section",
"280G",
"(",
"b",
")",
"(",
"2",
")",
"of",
"the",
"Code",
".",
"Present",
"Value",
"",
"The",
"term",
"Present",
"Value",
"shall",
"have",
"the",
"same",
"meaning",
"as",
"provided",
"in",
"Section",
"280G",
"(",
"d",
")",
"(",
"4",
")",
"of",
"the",
"Code",
".",
"Reasonable",
"Compensation",
"",
"The",
"term",
"Reasonable",
"Compensation",
"shall",
"have",
"the",
"same",
"meaning",
"as",
"provided",
"in",
"Section",
"280G",
"(",
"b",
")",
"(",
"4",
")",
"of",
"the",
"Code",
".",
"BENEFITS",
"UPON",
"TERMINATION",
".",
"(",
"ii",
")",
"on",
"or",
"within",
"24",
"months",
"after",
"a",
"Change",
"in",
"Control",
",",
"and",
"such",
"termination",
"is",
"a",
"result",
"of",
"Involuntary",
"Termination",
"or",
"Voluntary",
"Termination",
",",
"as",
"defined",
"below",
",",
"then",
"the",
"benefits",
"described",
"in",
"Section",
"2",
"below",
"shall",
",",
"subject",
"to",
"Article",
"IV",
"of",
"this",
"Agreement",
",",
"be",
"paid",
"or",
"provided",
"to",
"the",
"Executive",
".",
"The",
"fact",
"that",
"Executive",
"is",
"eligible",
"for",
"early",
",",
"normal",
"or",
"delayed",
"retirement",
"under",
"a",
"Company",
"retirement",
"plan",
"at",
"the",
"time",
"of",
"his",
"or",
"her",
"termination",
"shall",
"not",
"make",
"him",
"or",
"her",
"ineligible",
"to",
"receive",
"benefits",
"hereunder",
".",
"For",
"the",
"purposes",
"of",
"the",
"following",
"definitions",
",",
"the",
"term",
"Company",
"shall",
"include",
"the",
"Company",
"s",
"subsidiaries",
"and",
"any",
"successor",
"as",
"a",
"result",
"of",
"the",
"Change",
"in",
"Control",
"to",
"the",
"business",
"and",
"assets",
"of",
"the",
"Company",
"or",
"its",
"subsidiaries",
".",
"(",
"a",
")",
"Involuntary",
"Termination",
"",
"For",
"purposes",
"hereof",
",",
"Involuntary",
"Termination",
"shall",
"mean",
"termination",
"of",
"employment",
"that",
"is",
"involuntary",
"on",
"the",
"part",
"of",
"the",
"Executive",
"and",
"that",
"occurs",
"for",
"reasons",
"other",
"than",
"Cause",
",",
"Disability",
"or",
"death",
".",
"(",
"b",
")",
"Voluntary",
"Termination",
"",
"For",
"purposes",
"hereof",
",",
"Voluntary",
"Termination",
"shall",
"mean",
"termination",
"of",
"employment",
"that",
"is",
"voluntary",
"on",
"the",
"part",
"of",
"the",
"Executive",
",",
"and",
",",
"in",
"the",
"judgment",
"of",
"the",
"Executive",
",",
"is",
"due",
"to",
",",
"and",
"which",
"occurs",
"within",
"six",
"months",
"of",
":",
"(",
"i",
")",
"the",
"assignment",
"to",
"the",
"Executive",
"of",
"any",
"duties",
"inconsistent",
"with",
"the",
"Executive",
"s",
"title",
"and",
"status",
"in",
"effect",
"prior",
"to",
"the",
"Change",
"in",
"Control",
",",
"a",
"material",
"increase",
"or",
"decrease",
"in",
"the",
"Executive",
"s",
"responsibilities",
"at",
"the",
"Company",
"from",
"those",
"in",
"effect",
"immediately",
"prior",
"to",
"the",
"Change",
"in",
"Control",
",",
"or",
"an",
"adverse",
"alteration",
"in",
"the",
"nature",
"or",
"status",
"of",
"such",
"responsibilities",
"(",
"other",
"than",
"any",
"such",
"alteration",
"to",
"the",
"extent",
"incidental",
"to",
"the",
"fact",
"that",
"the",
"Company",
"may",
"no",
"longer",
"be",
"a",
"public",
"company",
")",
";",
"(",
"ii",
")",
"a",
"reduction",
"by",
"the",
"Company",
"of",
"the",
"Executive",
"s",
"base",
"salary",
"from",
"such",
"salary",
"in",
"effect",
"prior",
"to",
"the",
"Change",
"in",
"Control",
";",
"the",
"year",
"preceding",
"the",
"Change",
"in",
"Control",
")",
",",
"except",
"for",
"required",
"travel",
"on",
"the",
"Company",
"s",
"business",
"to",
"an",
"extent",
"substantially",
"consistent",
"with",
"the",
"Executive",
"s",
"business",
"travel",
"obligations",
"prior",
"to",
"the",
"Change",
"in",
"Control",
";",
"(",
"iv",
")",
"the",
"failure",
"by",
"the"
] |
20 | 123631 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"the",
"Executive",
"s",
"business",
"travel",
"obligations",
"prior",
"to",
"the",
"Change",
"in",
"Control",
";",
"(",
"iv",
")",
"the",
"failure",
"by",
"the",
"Company",
",",
"without",
"the",
"Executive",
"s",
"consent",
",",
"to",
"pay",
"to",
"the",
"Executive",
"any",
"portion",
"of",
"the",
"Executive",
"s",
"then-current",
"compensation",
"(",
"including",
"base",
"salary",
"and",
"annual",
"bonus",
"to",
"the",
"extent",
"payable",
"under",
"the",
"terms",
"of",
"annual",
"bonus",
"programs",
"in",
"effect",
"from",
"time",
"to",
"time",
")",
",",
"or",
"to",
"pay",
"to",
"the",
"Executive",
"any",
"portion",
"of",
"an",
"installment",
"of",
"deferred",
"compensation",
"under",
"any",
"deferred",
"compensation",
"program",
"of",
"the",
"Company",
",",
"in",
"each",
"case",
"within",
"seven",
"days",
"of",
"the",
"date",
"such",
"compensation",
"is",
"due",
";",
"(",
"v",
")",
"the",
"failure",
"by",
"the",
"Company",
"to",
"continue",
"in",
"effect",
"any",
"compensation",
"plan",
"in",
"which",
"the",
"Executive",
"participates",
"immediately",
"prior",
"to",
"the",
"Change",
"in",
"Control",
",",
"which",
"is",
"material",
"to",
"the",
"Executive",
"s",
"total",
"compensation",
",",
"including",
"but",
"not",
"limited",
"to",
"the",
"Company",
"s",
"annual",
"bonus",
"plan",
",",
"stock",
"option",
"plan",
",",
"or",
"any",
"similar",
"or",
"substitute",
"plans",
"adopted",
"prior",
"to",
"the",
"Change",
"in",
"Control",
",",
"unless",
"an",
"equitable",
"arrangement",
"(",
"embodied",
"in",
"an",
"ongoing",
"substitute",
"or",
"alternative",
"plan",
")",
"has",
"been",
"made",
"with",
"respect",
"to",
"such",
"plan",
",",
"or",
"the",
"failure",
"by",
"the",
"Company",
"to",
"continue",
"the",
"Executive",
"s",
"participation",
"in",
"such",
"plan",
"(",
"or",
"in",
"such",
"substitute",
"or",
"alternative",
"plan",
")",
"on",
"a",
"basis",
"not",
"materially",
"less",
"favorable",
",",
"both",
"in",
"terms",
"of",
"the",
"amount",
"of",
"benefits",
"provided",
"(",
"or",
"potentially",
"available",
"under",
"incentive",
"compensation",
"programs",
")",
"and",
"the",
"level",
"of",
"the",
"Executive",
"s",
"participation",
"relative",
"to",
"other",
"participants",
",",
"as",
"existed",
"immediately",
"prior",
"to",
"the",
"Change",
"in",
"Control",
";",
"(",
"vii",
")",
"the",
"failure",
"of",
"any",
"successor",
"to",
"assume",
"this",
"Agreement",
"as",
"provided",
"in",
"Section",
"V.2",
"below",
".",
"A",
"termination",
"shall",
"not",
"be",
"considered",
"voluntary",
"within",
"the",
"meaning",
"of",
"this",
"Agreement",
"if",
"such",
"termination",
"is",
"the",
"result",
"of",
"Cause",
",",
"Disability",
"or",
"death",
"of",
"the",
"Executive",
".",
"The",
"Executive",
"s",
"continued",
"employment",
"shall",
"not",
"constitute",
"consent",
"to",
",",
"or",
"a",
"waiver",
"of",
"rights",
"with",
"respect",
"to",
",",
"any",
"act",
"or",
"failure",
"to",
"act",
"relating",
"to",
"Voluntary",
"Termination",
"hereunder",
".",
"Benefits",
"to",
"be",
"Provided",
"",
"If",
"the",
"Executive",
"becomes",
"eligible",
"for",
"benefits",
"under",
"Section",
"1",
"above",
",",
"the",
"Company",
"shall",
"pay",
"or",
"provide",
"to",
"the",
"Executive",
"the",
"compensation",
"and",
"benefits",
"set",
"forth",
"in",
"this",
"Section",
"2",
".",
"(",
"a",
")",
"Salary",
"",
"The",
"Executive",
"will",
"continue",
"to",
"receive",
"his",
"or",
"her",
"current",
"salary",
"(",
"subject",
"to",
"withholding",
"of",
"all",
"applicable",
"taxes",
"and",
"any",
"amounts",
"referred",
"to",
"in",
"Section",
"2",
"(",
"b",
")",
"below",
")",
"for",
"the",
"period",
"specified",
"below",
"following",
"his",
"date",
"of",
"termination",
"in",
"the",
"same",
"manner",
"as",
"it",
"was",
"being",
"paid",
"as",
"of",
"the",
"date",
"of",
"termination",
";",
"provided",
",",
"however",
",",
"that",
"the",
"salary",
"payments",
"provided",
"for",
"hereunder",
"shall",
"be",
"paid",
"in",
"a",
"single",
"lump",
"sum",
"payment",
",",
"to",
"be",
"paid",
"not",
"earlier",
"than",
"six",
"months",
"and",
"one",
"day",
",",
"and",
"not",
"later",
"than",
"seven",
"months",
",",
"after",
"his",
"or",
"her",
"termination",
"of",
"employment",
";",
"provided",
",",
"further",
","
] |
20 | 124111 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
",",
"and",
"not",
"later",
"than",
"seven",
"months",
",",
"after",
"his",
"or",
"her",
"termination",
"of",
"employment",
";",
"provided",
",",
"further",
",",
"that",
"the",
"amount",
"of",
"such",
"lump",
"sum",
"payment",
"shall",
"be",
"determined",
"by",
"taking",
"the",
"salary",
"payments",
"to",
"be",
"made",
"and",
"discounting",
"them",
"to",
"their",
"Present",
"Value",
"on",
"the",
"date",
"the",
"Executive",
"s",
"employment",
"is",
"terminated",
",",
"increased",
"by",
"interest",
"on",
"such",
"amount",
"for",
"each",
"day",
"from",
"the",
"31st",
"day",
"after",
"termination",
"of",
"employment",
"until",
"the",
"date",
"of",
"payment",
",",
"calculated",
"on",
"a",
"daily",
"basis",
"at",
"a",
"rate",
"per",
"annum",
"equal",
"to",
"the",
"rate",
"used",
"to",
"determine",
"such",
"Present",
"Value",
".",
"For",
"purposes",
"hereof",
",",
"the",
"Executive",
"s",
"current",
"salary",
"shall",
"be",
"the",
"highest",
"rate",
"in",
"effect",
"during",
"the",
"six-month",
"period",
"prior",
"to",
"the",
"Executive",
"s",
"termination",
".",
"The",
"period",
"for",
"which",
"such",
"salary",
"payments",
"shall",
"be",
"so",
"made",
"shall",
"be",
"as",
"follows",
":",
"(",
"ii",
")",
"24",
"months",
"in",
"the",
"case",
"of",
"a",
"Change",
"in",
"Control",
"occurring",
"with",
"the",
"prior",
"approval",
"of",
"the",
"Board",
"of",
"Directors",
".",
"(",
"b",
")",
"Health",
"and",
"Life",
"Insurance",
"Coverage",
"",
"The",
"health",
"and",
"life",
"insurance",
"benefits",
"coverage",
"(",
"including",
"any",
"executive",
"medical",
"plan",
"or",
"split",
"dollar",
"insurance",
"plan",
")",
"provided",
"to",
"the",
"Executive",
"at",
"his",
"or",
"her",
"date",
"of",
"termination",
"(",
"or",
",",
"if",
"greater",
",",
"within",
"six",
"months",
"prior",
"to",
"such",
"date",
"of",
"termination",
")",
",",
"shall",
"be",
"provided",
"by",
"the",
"Company",
"(",
"no",
"less",
"frequently",
"than",
"monthly",
")",
"at",
"its",
"expense",
"at",
"the",
"same",
"level",
"and",
"in",
"the",
"same",
"manner",
"as",
"if",
"his",
"or",
"her",
"employment",
"had",
"not",
"terminated",
"(",
"and",
",",
"if",
"applicable",
",",
"such",
"coverage",
"had",
"not",
"been",
"terminated",
"or",
"modified",
"within",
"six",
"months",
"prior",
"to",
"such",
"date",
"of",
"termination",
")",
",",
"but",
"subject",
"to",
"the",
"customary",
"changes",
"in",
"such",
"coverages",
"if",
"the",
"Executive",
"reaches",
"age",
"65",
"or",
"has",
"similar",
"changes",
"in",
"personal",
"or",
"family",
"circumstances",
",",
"beginning",
"on",
"the",
"date",
"of",
"such",
"termination",
"and",
"ending",
"on",
"the",
"date",
"12",
"months",
"from",
"the",
"date",
"of",
"such",
"termination",
".",
"Any",
"additional",
"coverages",
"the",
"Executive",
"had",
"at",
"termination",
",",
"including",
"dependent",
"coverage",
",",
"will",
"also",
"be",
"continued",
"for",
"such",
"period",
"on",
"the",
"same",
"terms",
",",
"to",
"the",
"extent",
"permitted",
"by",
"the",
"applicable",
"policies",
"or",
"contracts",
".",
"Any",
"costs",
"the",
"Executive",
"was",
"paying",
"for",
"such",
"coverages",
"at",
"the",
"time",
"of",
"termination",
"shall",
"be",
"paid",
"by",
"the",
"Executive",
"by",
"separate",
"check",
"payable",
"to",
"the",
"Company",
"each",
"month",
"in",
"advance",
".",
"the",
"terms",
"of",
"any",
"benefit",
"plan",
"as",
"described",
"above",
".",
"The",
"coverages",
"provided",
"for",
"in",
"this",
"subsection",
"shall",
"be",
"applied",
"against",
"and",
"reduce",
"the",
"period",
"for",
"which",
"COBRA",
"will",
"be",
"provided",
",",
"and",
"may",
"at",
"the",
"Company",
"s",
"election",
"be",
"provided",
"as",
"COBRA",
"coverage",
",",
"subject",
"to",
"payment",
"by",
"the",
"Company",
"to",
"the",
"Executive",
"(",
"monthly",
"in",
"advance",
")",
"of",
"additional",
"compensation",
"equal",
"to",
"the",
"excess",
"of",
"the",
"COBRA",
"premium",
"over",
"the",
"costs",
"otherwise",
"payable",
"by",
"the",
"Executive",
"as",
"provided",
"above",
",",
"in",
"each",
"case",
"as",
"in",
"effect",
"from",
"time",
"to",
"time",
",",
"plus",
"an",
"additional",
"amount",
"as",
"necessary",
"to",
"reimburse",
"the",
"Executive",
"for"
] |
20 | 124591 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"case",
"as",
"in",
"effect",
"from",
"time",
"to",
"time",
",",
"plus",
"an",
"additional",
"amount",
"as",
"necessary",
"to",
"reimburse",
"the",
"Executive",
"for",
"additional",
"taxes",
"payable",
"on",
"both",
"such",
"additional",
"compensation",
"and",
"such",
"additional",
"amount",
"at",
"a",
"combined",
"tax",
"rate",
"of",
"45",
"%",
";",
"provided",
",",
"however",
",",
"that",
"the",
"first",
"of",
"any",
"such",
"payments",
"by",
"the",
"Company",
"shall",
"be",
"made",
"no",
"earlier",
"than",
"six",
"months",
"and",
"one",
"day",
",",
"and",
"not",
"later",
"than",
"seven",
"months",
",",
"after",
"the",
"Executive",
"s",
"termination",
"of",
"employment",
"and",
"shall",
"include",
"all",
"amounts",
"so",
"payable",
"with",
"respect",
"to",
"the",
"first",
"seven",
"months",
"following",
"such",
"termination",
".",
"(",
"c",
")",
"Stock",
"Options",
"",
"As",
"of",
"the",
"Executive",
"s",
"date",
"of",
"termination",
",",
"all",
"outstanding",
"stock",
"options",
"granted",
"to",
"the",
"Executive",
"under",
"any",
"stock",
"option",
"plan",
"or",
"program",
"maintained",
"by",
"the",
"Company",
"shall",
"become",
"100",
"%",
"vested",
"and",
"immediately",
"exercisable",
",",
"and",
"shall",
"thereafter",
"remain",
"exercisable",
"until",
"the",
"expiration",
"dates",
"otherwise",
"in",
"effect",
"had",
"the",
"Executive",
"remained",
"continuously",
"employed",
"by",
"the",
"Company",
".",
"(",
"d",
")",
"Annual",
"Bonus",
"for",
"the",
"Year",
"Preceding",
"Termination",
"",
"If",
"not",
"previously",
"paid",
",",
"the",
"Company",
"shall",
"pay",
"to",
"the",
"Executive",
"cash",
"incentive",
"compensation",
"for",
"the",
"year",
"preceding",
"the",
"year",
"in",
"which",
"the",
"termination",
"occurs",
",",
"in",
"an",
"amount",
"determined",
"in",
"accordance",
"with",
",",
"and",
"payable",
"as",
"provided",
"in",
",",
"the",
"Company",
"s",
"Executive",
"Annual",
"Incentive",
"Compensation",
"Plan",
"(",
"or",
"successor",
"or",
"replacement",
"plan",
")",
"as",
"in",
"effect",
"for",
"such",
"preceding",
"year",
".",
"(",
"e",
")",
"Annual",
"Bonus",
"for",
"the",
"Year",
"of",
"Termination",
"",
"In",
"the",
"case",
"of",
"a",
"Change",
"in",
"Control",
"occurring",
"with",
"the",
"prior",
"approval",
"of",
"the",
"Board",
"of",
"Directors",
",",
"the",
"Company",
"shall",
"pay",
"to",
"the",
"Executive",
"cash",
"incentive",
"compensation",
"for",
"the",
"year",
"in",
"which",
"the",
"termination",
"occurs",
"in",
"the",
"amount",
"determined",
"in",
"accordance",
"with",
",",
"and",
"payable",
"as",
"provided",
"in",
",",
"the",
"Company",
"s",
"Executive",
"Annual",
"Incentive",
"Compensation",
"Plan",
"(",
"or",
"successor",
"or",
"replacement",
"plan",
")",
"as",
"in",
"effect",
"for",
"such",
"year",
".",
"(",
"f",
")",
"Effect",
"of",
"Death",
"",
"In",
"the",
"event",
"of",
"the",
"Executive",
"s",
"death",
"after",
"he",
"becomes",
"entitled",
"to",
"payments",
"or",
"benefits",
"hereunder",
",",
"the",
"payments",
"and",
"benefits",
"shall",
"be",
"continued",
"to",
"his",
"or",
"her",
"spouse",
"for",
"the",
"remainder",
"of",
"the",
"applicable",
"36-",
",",
"24-",
"or",
"12-month",
"period",
".",
"If",
"the",
"Executive",
"is",
"not",
"married",
",",
"the",
"payments",
"and",
"benefits",
"shall",
"cease",
"on",
"his",
"or",
"her",
"date",
"of",
"death",
".",
"(",
"g",
")",
"Allocation",
"for",
"Non-Competition",
"Obligation",
".",
"",
"A",
"portion",
"of",
"the",
"payments",
"paid",
"to",
"Executive",
"under",
"this",
"Agreement",
"in",
"the",
"amount",
"of",
"$",
"75,000",
"is",
"paid",
"to",
"Executive",
"as",
"consideration",
"for",
"Executive",
"s",
"Non-Competition",
"Obligation",
"under",
"Article",
"VII",
"of",
"this",
"Agreement",
".",
"LIMITATION",
"OF",
"BENEFITS",
".",
"Limitation",
"of",
"Amount",
"",
"Notwithstanding",
"anything",
"in",
"this",
"Agreement",
"to",
"the",
"contrary",
",",
"if",
"any",
"of",
"the",
"compensation",
"or",
"benefits",
"payable",
",",
"or",
"to",
"be",
"provided",
",",
"to",
"the",
"Executive",
"by",
"the",
"Company",
"under",
"this",
"Agreement",
"or",
"otherwise"
] |
20 | 125051 | [
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0,
0
] | [
"or",
"benefits",
"payable",
",",
"or",
"to",
"be",
"provided",
",",
"to",
"the",
"Executive",
"by",
"the",
"Company",
"under",
"this",
"Agreement",
"or",
"otherwise",
"are",
"treated",
"as",
"Excess",
"Severance",
"Payments",
"(",
"whether",
"alone",
"or",
"in",
"conjunction",
"with",
"payments",
"or",
"benefits",
"outside",
"of",
"this",
"Agreement",
")",
",",
"the",
"compensation",
"and",
"benefits",
"provided",
"under",
"this",
"Agreement",
"or",
"otherwise",
"shall",
"be",
"modified",
"or",
"reduced",
"in",
"the",
"manner",
"provided",
"in",
"Section",
"2",
"below",
"to",
"the",
"extent",
"necessary",
"so",
"that",
"the",
"compensation",
"and",
"benefits",
"payable",
"or",
"to",
"be",
"provided",
"to",
"the",
"Executive",
"under",
"this",
"Agreement",
"that",
"are",
"treated",
"as",
"Severance",
"Payments",
",",
"as",
"well",
"as",
"any",
"compensation",
"or",
"benefits",
"provided",
"outside",
"of",
"this",
"Agreement",
"that",
"are",
"so",
"treated",
",",
"shall",
"not",
"cause",
"the",
"Company",
"to",
"have",
"paid",
"an",
"Excess",
"Severance",
"Payment",
".",
"In",
"computing",
"such",
"amount",
",",
"the",
"parties",
"shall",
"take",
"into",
"account",
"all",
"provisions",
"of",
"Code",
"Section",
"280G",
",",
"and",
"the",
"regulations",
"thereunder",
",",
"including",
"making",
"appropriate",
"adjustments",
"to",
"such",
"calculation",
"for",
"amounts",
"established",
"to",
"be",
"Reasonable",
"Compensation",
",",
"and",
"for",
"amounts",
"paid",
"to",
"the",
"Executive",
"as",
"consideration",
"for",
"the",
"Executive",
"s",
"Non-Competition",
"Obligation",
"under",
"Article",
"VII",
"of",
"this",
"Agreement",
".",
"The",
"determinations",
"under",
"this",
"Section",
"IV.1",
"with",
"regard",
"to",
"Excess",
"Severance",
"Payments",
"shall",
"be",
"made",
"by",
"an",
"independent",
"accounting",
"firm",
"selected",
"by",
"the",
"Company",
"and",
"the",
"Executive",
",",
"which",
"shall",
"provide",
"detailed",
"supporting",
"calculations",
"to",
"the",
"parties",
".",
"Modification",
"of",
"Amount",
"",
"In",
"the",
"event",
"that",
"the",
"amount",
"of",
"any",
"Severance",
"Payments",
"which",
"would",
"be",
"payable",
"to",
"or",
"for",
"the",
"benefit",
"of",
"the",
"Executive",
"under",
"this",
"Agreement",
"must",
"be",
"modified",
"or",
"reduced",
"to",
"comply",
"with",
"this",
"Article",
",",
"the",
"Executive",
"shall",
"direct",
"which",
"Severance",
"Payments",
"are",
"to",
"be",
"modified",
"or",
"reduced",
"but",
"only",
"to",
"the",
"extent",
"that",
"the",
"right",
"to",
"direct",
",",
"and",
"the",
"actual",
"direction",
"of",
",",
"which",
"Severance",
"Payments",
"are",
"to",
"be",
"modified",
"or",
"reduced",
"does",
"not",
"result",
"in",
"any",
"failure",
"of",
"this",
"Agreement",
"to",
"comply",
"with",
"Section",
"409A",
"of",
"the",
"Code",
".",
"If",
"the",
"right",
"to",
"direct",
",",
"or",
"the",
"actual",
"direction",
"of",
",",
"which",
"Severance",
"Payments",
"are",
"to",
"be",
"modified",
"or",
"reduced",
"would",
"result",
"in",
"any",
"failure",
"of",
"this",
"Agreement",
"or",
"any",
"other",
"arrangement",
"to",
"comply",
"with",
"Section",
"409A",
"of",
"the",
"Code",
",",
"then",
",",
"in",
"lieu",
"of",
"the",
"Executive",
"s",
"right",
"to",
"direct",
"which",
"Severance",
"Payments",
"are",
"to",
"be",
"reduced",
"or",
"modified",
",",
"the",
"order",
"of",
"reduction",
",",
"on",
"a",
"pro",
"rata",
"basis",
"within",
"each",
"category",
",",
"shall",
"be",
"first",
"any",
"such",
"cash",
"payments",
",",
"next",
"any",
"equity",
"compensation",
",",
"then",
"any",
"medical",
"or",
"life",
"insurance",
"and",
"lastly",
"any",
"other",
"remaining",
"payments",
"or",
"benefits",
".",
"No",
"increase",
"in",
"the",
"amount",
"of",
"any",
"payment",
"shall",
"be",
"made",
"without",
"the",
"consent",
"of",
"the",
"Company",
".",
"Avoidance",
"of",
"Penalty",
"Taxes",
"",
"This",
"Article",
"shall",
"be",
"interpreted",
"so",
"as",
"to",
"avoid",
"the",
"imposition",
"of",
"excise",
"taxes",
"on",
"the",
"Executive",
"under",
"Section",
"4999",
"of",
"the",
"Code",
"or",
"the",
"disallowance",
"of",
"a",
"deduction",
"to",
"the",
"Company",
"pursuant",
"to"
] |