Best Practices For The         Growing BusinessThe material provided herein is for informational purposes    only and is n...
Please help yourself to foodand drinksPlease let us know if the roomtemperature is too hot or coldBathrooms are located pa...
Corporate Maintenance, Tune Up   and Succession Planning        Stefanie McNamara
I. Observing Formalities1.   Governing Bodies      • Shareholders/Members      • Board of Directors/Managers      • Office...
II. Contract Trouble Spots• Indemnification• Warranty• Ownership of IP• Assignment• Term and Termination• Restrictive Cove...
III. Corporate Succession PlanningShareholder (Operating) Agreements     • Restrictions on transfer or issuance of stock/e...
Insurance for the Growing  Business - and Beyond       Charles Miller
Risk Management Areas1.   Liability Loss Exposures2.   Income Loss Exposures3.   Property Loss Exposures4.   People Loss E...
Liability Loss Exposures1. Commercial General Liability   Insurance                              9
1. Commercial General Liability         Insurance• Cover bodily injury and property damage  claims• Excludes coverage for ...
Liability Loss Exposures1. Commercial General Liability   Insurance2. Commercial Auto Insurance                           ...
2. Commercial Auto Insurance• Covers vehicles used by business• Both property damage and liability  coverage              ...
Liability Loss Exposures1. Commercial General Liability   Insurance2. Commercial Auto Insurance3. Professional Liability/E...
3. Professional Liability/Errors     and Omissions Insurance• Covers claims arising out providing  professional services• ...
Liability Loss Exposures1. Commercial General Liability   Insurance2. Commercial Auto Insurance3. Professional Liability/E...
4. Employment  Practices/Employers Liability            Insurance• Discrimination• Wrongful termination• Sexual harassment...
Liability Loss Exposures1. Commercial General Liability Insurance2. Commercial Auto Insurance3. Professional Liability/Err...
Income Loss Exposures1. Business Interruption Insurance                               18
1. Business Interruption/Extra      Expense Insurance• Covers lost cash flow and profits• Often part of property insurance...
Income Loss Exposures1. Business Interruption Insurance2. Workers Compensation Insurance                             20
2. Workers Compensation Insurance • Covers job-related injuries • Mandatory for most employers                            ...
Income Loss Exposures1. Business Interruption Insurance2. Workers Compensation Insurance3. Disability/Life Insurance      ...
3. Disability/Life Insurance• Disability Insurance• Life Insurance                         23
Property Loss Exposures1. Business Property Insurance                                 24
1. Business Property Insurance• Covers business real and personal  property• Business auto (property damage)• Inland marin...
People Loss Exposures1. Workers Compensation Insurance2. Medical Insurance3. Business Continuity Insurance                ...
3. Business Continuity Insurance1. Life/Disability Insurance                               27
Life Insurance1. Buy-sell   agreement - set up   by Owners.2. Life insurance -   fund the buy-sell.                       ...
3. Business Continuity Insurance1. Life/Disability Insurance2. Key Person Insurance                               29
Key Person InsuranceWhy? To compensate the business for its losses and to facilitate business continuity when that key per...
Key Person InsuranceWho? Death or disability would be a financial detriment to the company                                31
“Do I Have Enough Insurance?”   Let’s talk!                      32
Questions & Answers Session           Part 1
Seminar Intermission
No Excuses! No Surprises!Employee Handbooks and  Employment Policies        Pat Collins
Key Practical Issues• Who is covered  –   Location  –   Status  –   Union/Non-Union  –   Salaried/Hourly• What is covered ...
Key Practical Issues• Drafting  – Conversational – Non -Threatening  – Avoid Legalese  – Consistency     • Terminology    ...
Key Legal Issues• EEO – Discrimination Prohibited• Anti-Harassment• Employment At-Will• Benefits/Payroll Administration• P...
N.J. Law Against Discrimination (“LAD”)N.J. Conscientious Employee Protection Act                 (“CEPA”)• Extremely libe...
LAD• Applies to employers, individuals, and “any  person who aids, abets, or otherwise assists” in  prohibited conduct.• M...
EEO – Non-Discrimination –   Anti-Harassment Policies• Written Policy Mandatory in NJ  – Presumed negligent without one• T...
Employment At-Will         No Contracts• Policy emphasized repeatedly• Introductory Disclaimer• At-Will Statement• Benefit...
Benefits/Pay Practices• Disclaimer – “The Company reserves the right to  amend or terminate any of these programs and to  ...
Privacy Expectations• Confidentiality Issues• Conflicts of Interest• Company Property/Trade Secrets• Employee Reference Re...
Privacy Expectations• Drug and Alcohol Testing• Searches• Internet and Electronic Media• Social Media and Networking  – Ce...
Employee Conduct• Codes of Conduct• Performance Reviews   – Counseling• Discipline   – Avoid progressive   – Require docum...
General Work Rules•Moonlighting          •Jury Duty            •Emergency Procedures•Personnel Files       •Tuition Assist...
Keeping Key Employees Agreements with Employees and Non-compete Issues – Protection of Company    Assets and Retention of ...
Retention, Protection and      Enforcement               EMPLOYEES                                TRADE SECRETS,          ...
Take Your Employment        TemperatureAsk the following questions regarding your employees and your business:Who? What?Wh...
Ask These Questions WhileConsidering The Importance Of:• Protecting company assets and  customer relationships, retaining ...
Who? What? When?•   WHO does my company need? From whom does the company need protection and    ongoing loyalty?    Execut...
WHY? – Just a Few Reasons:• Costs/losses incurred by companies• Increase of theft by employees during recession• Security ...
How?• Create agreements• Provide adequate consideration to  make sure the agreements are  enforceable• Create employment p...
Agreements With Employees       and Consultants• Employment Agreements/Consulting  Agreements (key executives, consultants...
Retention, Protection and      Enforcement               EMPLOYEES                                  TRADE SECRETS,        ...
Intellectual Property Essentials for the Small Business Owner         Kenneth Kaplan
Categories of Intellectual          Property• Copyrights• Trademarks and Service Marks• Patents• Trade Secrets            ...
Copyright Law Basics• Protects the creative expression of ideas• Does not protect ideas• Basic legal requirements:   – Ori...
Registration of Copyrights• Registration not necessary, but gives  you additional rights:  – Right to sue in federal court...
Maintaining Copyrights• Periodic checks of internet• Use copyright notice to put potential  infringers on notice and preve...
Trademark Law Basics• Trademarks distinguish your products  and services from those of your  competitors• Protects your in...
Acquiring Trademark Protection • Starts with the choice of a name for your   business • Continues with the way you brand y...
Selecting and Vetting Your           Trademarks• Using the Internet• Using a public database like the USPTO• Professional ...
Not All Trademarks are Equal• Choose a strong mark instead of a weak one• Arbitrary marks are the strongest• Suggestive ma...
Benefits of Registration• Federal and State Registration possible• Right to use ® symbol• More damages available• Mark can...
Maintaining Trademarks• Marking your products and marketing  materials• Use ® for federally registered marks• Establish po...
Patent Law Basics• A monopoly on technology• Does not arise automatically – must be  filed• Can take several years to obta...
What Can be Patented• Often said that “Anything under the sun that  is made by man” can be patented• A “new and useful pro...
What Cannot be Patented• Laws of nature (E=mc²)• Physical phenomena• Abstract ideas                           70
Types of PatentsTwo Main Types:1. Utility Patents:     –   Most common     –   Protects a new and useful process, machine,...
Requirements for PatentabilityInvention must be useful, new and non-obvious• Utility/Usefulness:    –   Usually the easies...
What Rights Does a Patent          Holder Have• One word: “exclusivity”• Only a right to exclude others from making, using...
Trade Secret Basics• Business secrets, unlike published patents and  copyrights which are available for the world to see• ...
Trade Secret Protection• Protected under federal and state laws• Most states have a version of the  “Uniform Trade Secrets...
Advantages over Patent         Protection• Perpetual protection• Broader protection that can extend to  business know-how•...
Safeguarding Valuable Trade           Secrets• Employee Confidentiality and non-  compete agreements• Customer/Vendor Non-...
Questions & Answers Session           Part 2     Thank you for coming!
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  • business ppt

    1. 1. Best Practices For The Growing BusinessThe material provided herein is for informational purposes only and is not intended as legal advice or counsel.
    2. 2. Please help yourself to foodand drinksPlease let us know if the roomtemperature is too hot or coldBathrooms are located past thereception desk on the rightPlease turn OFF your cellphonesPlease complete and returnsurveys at the end of theseminar 2
    3. 3. Corporate Maintenance, Tune Up and Succession Planning Stefanie McNamara
    4. 4. I. Observing Formalities1. Governing Bodies • Shareholders/Members • Board of Directors/Managers • Officers2. Documenting Corporate Action • Authorizing Resolutions • Delegations of Authority for Officers/Key Employees3. Meetings • Annual/Periodic Meetings4. Proper Record Keeping • Minute Book/Stock Ledger5. File Annual Report With Department of TreasuryNote:∗ These Requirements Apply to All Entities Regardless of Size/Number∗ Failure to Comply Creates Risk of Losing Corporate Shield From Individual Liability 4
    5. 5. II. Contract Trouble Spots• Indemnification• Warranty• Ownership of IP• Assignment• Term and Termination• Restrictive Covenants 5
    6. 6. III. Corporate Succession PlanningShareholder (Operating) Agreements • Restrictions on transfer or issuance of stock/equity • Buy/Sell Provisions − Voluntary sales to third parties − Upon death/retirement/termination/divorce − Planning your exit strategy − Planning for your partner’s exit − Estate Planning • Funding – Key Person Life Insurance; Disability 6
    7. 7. Insurance for the Growing Business - and Beyond Charles Miller
    8. 8. Risk Management Areas1. Liability Loss Exposures2. Income Loss Exposures3. Property Loss Exposures4. People Loss Exposures 8
    9. 9. Liability Loss Exposures1. Commercial General Liability Insurance 9
    10. 10. 1. Commercial General Liability Insurance• Cover bodily injury and property damage claims• Excludes coverage for employment practices claims• Exclude coverage for professional liability claims• Exclude coverage for pollution claims• How much? 10
    11. 11. Liability Loss Exposures1. Commercial General Liability Insurance2. Commercial Auto Insurance 11
    12. 12. 2. Commercial Auto Insurance• Covers vehicles used by business• Both property damage and liability coverage 12
    13. 13. Liability Loss Exposures1. Commercial General Liability Insurance2. Commercial Auto Insurance3. Professional Liability/Errors and Omissions Insurance 13
    14. 14. 3. Professional Liability/Errors and Omissions Insurance• Covers claims arising out providing professional services• Covers financial loss• Excluded from coverage under CGL policies 14
    15. 15. Liability Loss Exposures1. Commercial General Liability Insurance2. Commercial Auto Insurance3. Professional Liability/Errors and Omissions Insurance4. Employment Practices/Employers Liability Insurance 15
    16. 16. 4. Employment Practices/Employers Liability Insurance• Discrimination• Wrongful termination• Sexual harassment 16
    17. 17. Liability Loss Exposures1. Commercial General Liability Insurance2. Commercial Auto Insurance3. Professional Liability/Errors and Omissions Insurance4. Employment Practices/Employers Liability Insurance5. Business/Profession Specific Liability Insurance?? 17
    18. 18. Income Loss Exposures1. Business Interruption Insurance 18
    19. 19. 1. Business Interruption/Extra Expense Insurance• Covers lost cash flow and profits• Often part of property insurance coverage 19
    20. 20. Income Loss Exposures1. Business Interruption Insurance2. Workers Compensation Insurance 20
    21. 21. 2. Workers Compensation Insurance • Covers job-related injuries • Mandatory for most employers 21
    22. 22. Income Loss Exposures1. Business Interruption Insurance2. Workers Compensation Insurance3. Disability/Life Insurance 22
    23. 23. 3. Disability/Life Insurance• Disability Insurance• Life Insurance 23
    24. 24. Property Loss Exposures1. Business Property Insurance 24
    25. 25. 1. Business Property Insurance• Covers business real and personal property• Business auto (property damage)• Inland marine Insurance 25
    26. 26. People Loss Exposures1. Workers Compensation Insurance2. Medical Insurance3. Business Continuity Insurance 26
    27. 27. 3. Business Continuity Insurance1. Life/Disability Insurance 27
    28. 28. Life Insurance1. Buy-sell agreement - set up by Owners.2. Life insurance - fund the buy-sell. 28
    29. 29. 3. Business Continuity Insurance1. Life/Disability Insurance2. Key Person Insurance 29
    30. 30. Key Person InsuranceWhy? To compensate the business for its losses and to facilitate business continuity when that key person is lost to the business. 30
    31. 31. Key Person InsuranceWho? Death or disability would be a financial detriment to the company 31
    32. 32. “Do I Have Enough Insurance?” Let’s talk! 32
    33. 33. Questions & Answers Session Part 1
    34. 34. Seminar Intermission
    35. 35. No Excuses! No Surprises!Employee Handbooks and Employment Policies Pat Collins
    36. 36. Key Practical Issues• Who is covered – Location – Status – Union/Non-Union – Salaried/Hourly• What is covered – Are these your policies in practice 36
    37. 37. Key Practical Issues• Drafting – Conversational – Non -Threatening – Avoid Legalese – Consistency • Terminology • Conflicting policies• Distribution – Format (hard copy – intranet) – Time to Review – Acknowledgement of Receipt 37
    38. 38. Key Legal Issues• EEO – Discrimination Prohibited• Anti-Harassment• Employment At-Will• Benefits/Payroll Administration• Privacy Expectations• Employee Contract• General Work Rules 38
    39. 39. N.J. Law Against Discrimination (“LAD”)N.J. Conscientious Employee Protection Act (“CEPA”)• Extremely liberal interpretation – Easier administrative process. No caps on damages.• Lower Thresholds than Federal Laws• Allows Suits Against Individuals• Broader Scope of Protected Classes under LAD• CEPA “Reasonable Belief Standard” 39
    40. 40. LAD• Applies to employers, individuals, and “any person who aids, abets, or otherwise assists” in prohibited conduct.• Makes it unlawful to refuse to buy from, sell to, license, contract with or provide goods or services to anyone on the basis of a protected class.• Prohibits harassing conduct by third parties (visitors, customers, vendors).CEPA• Applies not only to employees, but independent contractors as well. 40
    41. 41. EEO – Non-Discrimination – Anti-Harassment Policies• Written Policy Mandatory in NJ – Presumed negligent without one• Training of Managers Mandatory in NJ• Risk Losing “Employer Defense”• Employee Liability• Good Business Practice 41
    42. 42. Employment At-Will No Contracts• Policy emphasized repeatedly• Introductory Disclaimer• At-Will Statement• Benefits Disclaimer• Codes of Conduct• Discipline & Termination• Signed Acknowledgement 42
    43. 43. Benefits/Pay Practices• Disclaimer – “The Company reserves the right to amend or terminate any of these programs and to require or increase premium contributions toward any benefit programs in its discretion.”• Benefit Explanations• Leaves• Pay Practices – Safe Harbor Language• Hours of Work – Employee Classification – Overtime Policy 43
    44. 44. Privacy Expectations• Confidentiality Issues• Conflicts of Interest• Company Property/Trade Secrets• Employee Reference Requests• Medical Information• Company Investigations 44
    45. 45. Privacy Expectations• Drug and Alcohol Testing• Searches• Internet and Electronic Media• Social Media and Networking – Cell phones, Blackberrys, Smartphones – Facebook, LinkedIn, Twitter 45
    46. 46. Employee Conduct• Codes of Conduct• Performance Reviews – Counseling• Discipline – Avoid progressive – Require documentation• Termination – Commissions/Bonuses – Benefits paid – Return of property – Exit Interview 46
    47. 47. General Work Rules•Moonlighting •Jury Duty •Emergency Procedures•Personnel Files •Tuition Assistance •Office Supplies/Machines•Office Hours •Dress Codes •Mail/Telephones•Inclement Weather •No Smoking •Media Contacts•Comp Time •Weapons •Inventions•Direct Deposit •Violence •Gifts•Performance Reviews •Solicitations •Customer Relations•Vacations •Bulletin Boards •Arrests/Convictions•Sick Days •Radios •Garnishments•Holidays •Layoffs •Expenses•Safety •Resignations •Language•Workplace Injuries •Terminations •Nepotism•Family Leave Issues •Exit Interviews •Grievance Procedure•Military Leave •Office Searches •Open Door Policy•Bereavement Leave •Visitors •Interns/Trainees 47
    48. 48. Keeping Key Employees Agreements with Employees and Non-compete Issues – Protection of Company Assets and Retention of Talent David Harmon
    49. 49. Retention, Protection and Enforcement EMPLOYEES TRADE SECRETS, CONFIDENTIAL/ COMPETITION PROPRIETARY INFORMATION, FILES AND RECORDS COMPANY CUSTOMERS COURTS 49
    50. 50. Take Your Employment TemperatureAsk the following questions regarding your employees and your business:Who? What?When?Why? How? 50
    51. 51. Ask These Questions WhileConsidering The Importance Of:• Protecting company assets and customer relationships, retaining key employees, and safely engaging consultants. 51
    52. 52. Who? What? When?• WHO does my company need? From whom does the company need protection and ongoing loyalty? Executives, consultants and rank and file employees privy to trade secrets and confidential/proprietary information, including customer relationships. Protection from competitors is critical.• WHAT can we do to keep key people and protect the company from theft of data, confidential and proprietary information and interference with employee, consulting and customer relationships? What happens when the consultant leaves or completes the engagement? Create binding contracts that impose reasonable restrictions on activity both during and after the employment and consulting relationships.• WHEN should this be done? Put agreements into effect at the commencement of employment and/or consulting arrangements. Or, for employees make them concurrent with reviews and increases in compensation/benefits. 52
    53. 53. WHY? – Just a Few Reasons:• Costs/losses incurred by companies• Increase of theft by employees during recession• Security of company assets and retention of files• Provide protection from competitors poaching employees and theft of information and relationships• Put your employees and the competition on notice and create right to bring claims against departing employees/consultants for breach of contract and against your competition for tortious interference with your contracts 53
    54. 54. How?• Create agreements• Provide adequate consideration to make sure the agreements are enforceable• Create employment practices and policies that dovetail with your agreements• Enforce those agreements 54
    55. 55. Agreements With Employees and Consultants• Employment Agreements/Consulting Agreements (key executives, consultants)• Confidentiality/Non-disclosure Agreements• Non-Solicitation Agreements (non-poach/raiding)• Non-Interference Agreements• Non-Competition Agreements (reasonable in scope, duration and geography)• Non-Disparagement Agreements (including “no kiss and tell” covenants; no ”bad-mouthing”)• Return of Materials Agreements• Invention Assignment Agreements (Work for Hire) 55
    56. 56. Retention, Protection and Enforcement EMPLOYEES TRADE SECRETS, CONFIDENTIAL/ COMPETITION PROPRIETARY INFORMATION, FILES AND RECORDS COMPANY CUSTOMERS COURTS 56
    57. 57. Intellectual Property Essentials for the Small Business Owner Kenneth Kaplan
    58. 58. Categories of Intellectual Property• Copyrights• Trademarks and Service Marks• Patents• Trade Secrets 58
    59. 59. Copyright Law Basics• Protects the creative expression of ideas• Does not protect ideas• Basic legal requirements: – Originality – Fixation• Protection arises automatically upon fixation• You get a basket of rights: – Make copies – Distribute work – Prepare derivative works – Perform the work• Lasts for 70 years (for works created after 1977) 59
    60. 60. Registration of Copyrights• Registration not necessary, but gives you additional rights: – Right to sue in federal court – Ability to recover attorneys’ fees and statutory damages• Registration also puts potential infringers on notice 60
    61. 61. Maintaining Copyrights• Periodic checks of internet• Use copyright notice to put potential infringers on notice and prevent them from claiming “innocent infringement”• Proper notice: – © or “copyright” or “copyr” – Year of first publication – Name of owner – “all rights reserved” 61
    62. 62. Trademark Law Basics• Trademarks distinguish your products and services from those of your competitors• Protects your investment in brand loyalty and good will• Any word, symbol, slogan, logo or design may qualify for trademark protection 62
    63. 63. Acquiring Trademark Protection • Starts with the choice of a name for your business • Continues with the way you brand your products and services • Must be used in commerce (“use it or lose it”) • Protection arises automatically from use in commerce (first to use takes precedence) 63
    64. 64. Selecting and Vetting Your Trademarks• Using the Internet• Using a public database like the USPTO• Professional Search Companies 64
    65. 65. Not All Trademarks are Equal• Choose a strong mark instead of a weak one• Arbitrary marks are the strongest• Suggestive marks are the most common• Descriptive marks may put you in a grey zone• But, you can protect a descriptive mark by: – Establishing “secondary meaning” – Demonstrating exclusive and continuous use for 5 years• Generic words cannot be protected 65
    66. 66. Benefits of Registration• Federal and State Registration possible• Right to use ® symbol• More damages available• Mark can become “incontestable” if used in commerce for 5 years• You can apply for federal registration based on an “intent to use” 66
    67. 67. Maintaining Trademarks• Marking your products and marketing materials• Use ® for federally registered marks• Establish policies and guidelines for use• Policing your Marks 67
    68. 68. Patent Law Basics• A monopoly on technology• Does not arise automatically – must be filed• Can take several years to obtain and can cost several thousand dollars• Essentially a contract between patent holder and the government 68
    69. 69. What Can be Patented• Often said that “Anything under the sun that is made by man” can be patented• A “new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof” (Title 35, section 101 of U.S. patent laws)• Patents in U.S. can be sought for almost any kind of invention 69
    70. 70. What Cannot be Patented• Laws of nature (E=mc²)• Physical phenomena• Abstract ideas 70
    71. 71. Types of PatentsTwo Main Types:1. Utility Patents: – Most common – Protects a new and useful process, machine, manufacture, or composition of matter, or any a new and useful improvement thereof – Protects what is useful about your invention2. Design Patents: – No requirement for utility – Protects the appearance of a functional article – Covers only the nonfunctional aspects of a product design (e.g. the design of a car) – Patents protect the ornamental design of an article. Trademarks protect the public identity of the product.What about Business Method Patents? – Historically, “methods of doing business” were not patentable because they did not fall into any of the four categories of invention: process, machine, manufacture or composition of matter – Up until about 2000 the USPTO took the position that "methods of doing business” are not patentable – Many business method patents granted in last 10 years – BMPs have been under assault in recent years and recent decisions call into question the enforceability of many if not most BMPs issued during last 10 years 71
    72. 72. Requirements for PatentabilityInvention must be useful, new and non-obvious• Utility/Usefulness: – Usually the easiest of the 3 requirements to establish• Novelty/Newness: – Invention cannot be patented if (1) it was described in a publication more than one year prior to the filing date; or (2) was used publicly, or offered for sale to the public more than one year prior to the filing date. – Inventor who does not file for patent protection on new invention within this one year grace period will lose all right to obtain patent protection on the invention. – Most other countries do not grant a grace period. Therefore, it is almost always preferable to file a patent application before any public disclosure of the invention.• Non-obvious – Invention must be a non-obvious improvement over prior art. – Determination is made by deciding whether the invention sought to be patented would have been obvious "to one of ordinary skill in the art. In other words, the invention is compared to the prior art and a determination is made whether the differences in the new invention would have been obvious to a person having ordinary skill " in the type of technology used in the invention. 72
    73. 73. What Rights Does a Patent Holder Have• One word: “exclusivity”• Only a right to exclude others from making, using or selling your invention• Unlike a copyright, which only protects actual copying, patents can protect against commercial use of an idea and its functional equivalent• Right to preclude functionally equivalent works• Doctrine of Equivalents is what makes patents the most comprehensive form of IP protection• Design patents = 14 years• Utility patents = 20 years 73
    74. 74. Trade Secret Basics• Business secrets, unlike published patents and copyrights which are available for the world to see• A trade secret is information that: – Derives value from not being generally known – Is the subject of efforts to maintain secrecy• Examples: – Formulas – Marketing strategies – Research pertaining to product formulations – Specialized training materials• Protection can last forever (unlike patents and copyrights)• Once disclosed, protection is lost forever 74
    75. 75. Trade Secret Protection• Protected under federal and state laws• Most states have a version of the “Uniform Trade Secrets Act”• Federal Law: the Economic Espionage Act of 1996: makes it a federal crime to steal a trade secret or to possess information that is known to be stolen 75
    76. 76. Advantages over Patent Protection• Perpetual protection• Broader protection that can extend to business know-how• Timely and automatic• No proof of novelty required 76
    77. 77. Safeguarding Valuable Trade Secrets• Employee Confidentiality and non- compete agreements• Customer/Vendor Non-disclosure Agreements• Consultant work-for-hire agreements (making sure you own what you pay for) 77
    78. 78. Questions & Answers Session Part 2 Thank you for coming!

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