Method of Selling Single Stock Futures Contracts and OnlineFacilitating Delivery and

Donation Online via a Nonprofit Organization

United States Patent Application 61/428178

Julie Butler
William Breck
Chris Ryan

December 26, 2010

ABSTRACT

Single Stock Futures Contracts (SSFC) is a hybrid financial instrument, which became effective on November 2,
2002, created under the Commodity Modernization Act of 2000 (CMA). They are futures contracts with the
underlying asset being one particular stock. When purchased, no transmission of share rights or dividends
occurs. Being futures contracts they are traded on margin, thus offering leverage, and they are also considered
an “asset class under Internal Revenue Service (IRS) Internal Revenue Code (IRC) 1234(b) for purposes of tacking
to determine holding period to recognize long term capital gains and/or fair market valuation vs. cost basis as
defined under IRC 1224(14) and IRS Publication 561.
Method of selling a single stock futures contract online via a nonprofit organization is in support of furtherance
of a business objective of the for profit small business while simultaneously offering advantages to the nonprofit
charitable organization. It is a mechanism whereby a small business gifts a certain amount of shares of its issued
common/preferred stock capital to a nonprofit and simultaneously the nonprofit issues SSFC’s against the
donated common/preferred stock capital to previous/prospective donors/investors via an online ecommerce
clearing mechanism.
The ability of a nonprofit to offer the SSFC’s contracts online in the absence of a registration statement lies in
the specific exemption for the securities of IRC §501(c)(3) non-profit organizations - under §3(a)(4) of the
Securities Act (as amended through October 13, 2009):
“(4) Any security issued by a person organized and operated exclusively for religious, educational,
benevolent, fraternal, charitable, or reformatory purposes and not for pecuniary profit, and no part of the
net earnings of which inures to the benefit of any person, private stockholder, or individual; or any security
of a fund that is excluded from the definition of a Securities that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940;”
§3(e) of the Exchange Act of 1934 provides:
“(e) Charitable organizations – (1) Exemption – Notwithstanding any other provision of this chapter, but
subject to paragraph (2) of this subsection, a charitable organization, as defined in section 3(c)(10)(D) of the
Investment Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(D)], or any trustee, director, officer, employee, or
volunteer of such a charitable organization acting within the scope of such person's employment or duties
with such organization, shall not be deemed to be a "broker", "dealer", "municipal securities broker",
"municipal securities dealer", "government securities broker", or "government securities dealer" for
purposes of this chapter solely because such organization or person buys, holds, sells, or trades in securities
for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the
account of – (A) such a charitable organization; (B) a fund that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)
(10)(B)]; or (C) a trust or other donative instrument described in section 3(c)(10)(B) of the Investment
Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(B)], or the settlors (or potential settlors) or beneficiaries of any
such trust or other instrument.

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 “(2) Limitation on compensation – The exemption provided under paragraph (1) shall not be available to any
charitable organization, or any trustee, director, officer, employee, or volunteer of such a charitable
organization, unless each person who, on or after 90 days after December 8, 1995, solicits donations on
behalf of such charitable organization from any donor to a fund that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)
(10)(B)], is either a volunteer or is engaged in the overall fund raising activities of a charitable organization
and receives no commission or other special compensation based on the number or the value of donations
collected for the fund.”
§3(a)(10)(B) and (D) of the Investment Company Act of 1940 provide:
“(B) For the purposes of subparagraph (A)(ii), a fund is described in this subparagraph if such fund is a
pooled income fund, collective trust fund, collective investment fund, or similar fund maintained by a
charitable organization exclusively for the collective investment and reinvestment of one or more of the
following: (i) assets of the general endowment fund or other funds of one or more charitable organizations;
(ii) assets of a pooled income fund; (iii) assets contributed to a charitable organization in exchange for the
issuance of charitable gift annuities; (iv) assets of a charitable remainder trust or of any other trust, the
remainder interests of which are irrevocably dedicated to any charitable organization; (v) assets of a
charitable lead trust; (vi) assets of a trust, the remainder interests of which are revocably dedicated to or
for the benefit of 1 or more charitable organizations, if the ability to revoke the dedication is limited to
circumstances involving – (I) an adverse change in the financial circumstances of a settlor or an income
beneficiary of the trust; (II) a change in the identity of the charitable organization or organizations having
the remainder interest, provided that the new beneficiary is also a charitable organization; or (III) both the
changes described in subclauses (I) and (II); (vii) assets of a trust not described in clauses (i) through (v), the
remainder interests of which are revocably dedicated to a charitable organization, subject to subparagraph
(C); or (viii) such assets as the Commission may prescribe by rule, regulation, or order in accordance with
section 80a6(c) of this title.”
“(D) For purposes of this paragraph – (i) a trust or fund is ‘maintained’ by a charitable organization if the
organization serves as a trustee or administrator of the trust or fund or has the power to remove the
trustees or administrators of the trust or fund and to designate new trustees or administrators; (ii) the term
‘pooled income fund’ has the same meaning as in section 642(c)(5) of title 26; (iii) the term ‘charitable
organization’ means an organization described in paragraphs (1) through (5) of section 170(c) or section
501(c)(3) of title 26; (iv) the term ‘charitable lead trust’ means a trust described in section 170(f)(2)(B),
2055(e)(2)(B), or 2522(c)(2)(B) of title 26; (v) the term ‘charitable remainder trust’ means a charitable
remainder annuity trust or a charitable remainder unitrust, as those terms are defined in section 664(d) of
title 26; and (vi) the term ‘charitable gift annuity’ means an annuity issued by a charitable organization that
is described in section 501(m)(5) of title 26.”
The brief summary of benefits includes:
1. Ability of a Nonprofit (a registered 501(c)(3)) to legally sell via electronic commerce, single stock future
contracts (SSFC) of donated shares (common/preferred stock capital) of private/public registered
companies the Nonprofit receives.
2. Small businesses having the ability of distributing potential future ownership in their venture to a wide
array of potential investors in absence of a registration statement filed with the Securities and
Exchange Commission.
CLAIMS
1. A method of selling single stock futures contracts via electronic commerce.
2. A method of selling single stock futures contracts via mass market commerce.
3. A method of selling single stock futures contracts via nonprofit organization.

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4. A method of selling single stock futures contracts through a nonprofit organization via electronic
commerce.
5. A method of selling single stock futures contracts through a nonprofit organization via mass market
commerce.
6. A method of selling single stock futures contracts via electronic commerce, exempt from registration
with the Securities and Exchange Commission (SEC).
7. A method of selling single stock futures contracts via electronic commerce, exempt from registration
with the Commodity Futures Trading Commission (CFTC).
8. A method of distributing future share ownership of privately held corporations via mass market
commerce, exempt from registration with the Securities and Exchange Commission (SEC).
9. A method of distributing future share ownership of privately held corporations via mass market
commerce, exempt from registration with the Commodity Futures Trading (CFTC).
10. A method of leveraging social networks and social network activity in financing equity based financing.
11. A method of distributing future share ownership via social networks of privately held corporations via
mass market commerce, exempt from registration with the Securities and Exchange Commission (SEC).
12. A method of distributing future share ownership via social networks of privately held corporations via
mass market commerce, exempt from registration with the Commodity Futures Trading Commission
(CFTC).
13. A method of distributing future share ownership via internet news portals of privately held corporations
via mass market commerce, exempt from registration with the Securities and Exchange Commission (SEC).
14. A method of selling single stock futures contracts via electronic commerce, exempt from registration with
the Commodity Futures Trading Commission (CFTC).
15. A method of distributing future share ownership of privately held corporations via electronic commerce,
exempt from registration with the Securities and Exchange Commission (SEC).
16. A method of distributing future share ownership of privately held corporations via electronic commerce,
exempt from registration with the Commodity Futures Trading.
17. A method of distributing future share ownership via social networks of privately held corporations via
electronic commerce, exempt from registration with the Securities and Exchange Commission (SEC).
18. A method of distributing future share ownership via social networks of privately held corporations via
electronic commerce, exempt from registration with the Commodity Futures Trading Commission (CFTC).
19. A method of distributing future share ownership via internet news portals of privately held corporations
via electronic commerce, exempt from registration with the Securities and Exchange Commission (SEC).
20. A method of distributing future share ownership via internet sales portals of privately held corporations
via electronic commerce, exempt from registration with the Commodity Futures Trading Commission
(CFTC).
21. A method of segregating donated assets in a separate escrow account.
22. A method of breaking up donated assets into identifiable units.
23. A method of producing futures contracts against identifiable units.
24. A method of producing an electronic receipt for purchase of SSFC.
25. A method of producing an electronic receipt acknowledging purchasers agreement and understanding to
uniform futures disclosure form.
26. A method of producing an electronic receipt informing purchaser of SSFC their right to rescind purchase.

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 27. A method of producing an electronic communication to purchaser of SSFC around delivery date of same.
28. A method of producing an electronic communication to purchaser of SSFC of the Valuation of same
29. A method of producing an electronic communication to purchaser of SSFC of options available for the
delivery of shares underlying same.
30. A method of producing an electronic receipt for the delivery of shares underlying the SSFC.
31. A method of producing an electronic communication as to the exempt status under 17 CFR 230.144 of the
shares delivered under the SSFC.
32. A method of producing an electronic communication to the Fair Market Valuation of the shares delivered
underlying the SSFC.
33. A method of producing an electronic communication to Charities willing to accept shares delivered under
the SSFC.
34. A method of using an ecommerce gateway for the delivery of the shares underlying the SSFC.
35. A method of producing an electronic receipt of the purchase and delivery of shares underlying a SSFC.
36. A method of electronically donating a certain amount of shares acquired under the SSFC to approved
charitable organization.
37. A method of producing an electronic receipt from receiving charity as to the receipt of shares acquired
under delivery of the SSFC.
38. A method of producing an electronic receipt and valuation opinion as to the fair market value of the
shares donated, to charity as a result of the delivery of the underlying shares of the SSFC.

DESCRIPTION
CROSS-REFERENCE
TO RELATED APPLICATIONS

[0001] The present application claims priority from provisional application Ser. No. 61/292,416 entitled "
Method for For-Profit Company to Increase Charitable Gifting Through Stock Futures Contract Issued by Related
Charitable Organization &/or Method for Charitable Organization to Support Entrepreneurship by Increasing
Investment in Start-Up and Early Stage Companies," filed on January 5, 2010.
[0002] The present application claims priority from provisional application Ser. No.61/422,027 entitled “Method
of Financing Small Business and Support of Entrepreneurship Through Charitable Alliance” filed on December 10,
2010.
[0003] The present application claims priority from provisional application Ser. No.61/422,052 entitled “Method
of Receiving Stock, Donating it and Receiving Fair Market Valuation for Same” filed on December 10, 2010.
[0004] The present application claims priority from provisional application Ser. No.61/422,041 entitled “Method
of Financing Small Business Consulting Work” filed on December 10, 2010.
FIELD OF INVENTION
[0005] This invention relates to a nonprofit’s distribution method of donated property. It is a system which
creates a mechanism whereby the nonprofit can issue future rights to donated property, specifically Single Stock
Futures Contracts against donated common/preferred shares of Private/Public Ventures (PPV) to potential
donors and/or investors in a mass market/electronic commerce environment, without requiring the donor and
or the recipient of the donated property the additional burden of registering the future contract rights (Single
Stock Futures Contract) and or the Donated Shares (DS), with the Securities and Exchange Commission (SEC)

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and/or the Commodity Futures Trading Commission (CFTC). More specifically, the invention relates to an
improved method of distributing SSFC to donors and/or investors in purchasing shares in common/preferred
stock of private/public ventures (PPV) by aligning the PPV and the Nonprofit (NP) in creating enhanced
transparency and market price efficiency, which is created by the following mechanism:
1) Shares donated to NP by PPV are passed through to NP in a Segregated Escrow Account (SEA) of the NP;
2) NP performs due diligence on the PPV and requests the following information about the PPV;
2a) Business Plan of PPV;
2b) Management Resumes and Officer Director Background;
2c) Web site URL;
2d) Financials of POCS (audited/reviewed);
2e) State of Incorporation and status (current, default, revoked);
2f) Authorized, and issued common and preferred stock capital;
2g) All options, warrants, and overhang;
2h) All Employee Stock Option Plans (ESOP’s), and Incentive Stock Option Plans (ISOP’s);
2i) All litigation involving the PPV, and whether defendant or plaintiff;
2j) All schedules of debts (including convertible debentures);
2k) All schedule of assets (including intellectual property, patents, trademarks, copyrights);
2l) Certificate of designation for each issued class of preferred stock;
2m) Signed representation form from PPV that they are not subject and/or qualified under Regulation T of
the Federal Reserve Board.
3) NP then divides donated property (common/preferred stock) into individual units;
4) NP then issues SSFC’s against the divided units with underlying collateral being (common/preferred stock of
PPV) held in segregated escrow account for insurance of future delivery of collateral upon execution of delivery
of the SSFC;
5) NP places collected information in 2a-2l of PPV inside the NP website via a clearly Identified Segregated
Frame (ISF) with navigation of available information from PPV;
6) NP then places within the ISF a banner identifying to viewer that SSFC in the PPV are available for purchase;
7) Upon donor/investor clicking 6 above they are taken to an Ecommerce Electronic Checkout Page (EECP)
identifying the SSFC offer including amount of shares underlying the SSFC, European Clearing Future Delivery
Date (ECFDD), and Delivery Price per Share (DPPS);
8) Prior to paying for the SSFC the donor/investor will have to check and initial acceptance of the Uniform
Futures Disclosure Form;
9) Upon 1-8 being executed donor/investor will be taken to an electronic payment within the NP internet
website.
10) Upon donated shares conforming to 2m above purchaser purchaser will be directed tois qualified to pay for
the SSFC via credit card or other electronic credit gateway.
11) Upon donated shares not conforming to 2m above purchaser will be directed is qualified to pay for SSFC via a
debit card and/or automated teller machine card (ATM) or electronic check.

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12) Upon purchaser concluding transaction, an email is sent to purchaser delivering an electronic receipt with
barcode; the electronically signed Uniform Futures Disclosure Agreement and a notice of three day right of
rescission.
BACKGROUND OF THE INVENTION
[0006] Nonprofits are predominantly driven by donation classes, consisting of cash, property, real estate,
annuities, life insurance bequeath and publicly traded securities. The present invention develops and supports
the creation of a whole new donation class, consisting of common/preferred stock of private corporation stock.
It is with respect to these considerations and others treat the present invention has been made. In order to
understand the background of the invention, current business practices are presented below, followed by legal
frameworks, structures and tools available to conduct business transactions under U.S. law.
[0007] Current Business Practices
[0008] Common Stock – A form of corporate equity ownership, a type of security. It is called "common" to
distinguish it from preferred.
[0009] Preferred Stock – A special equity security that has properties of both equity and a debt instrument and is
generally considered a hybrid instrument. Preferred are senior (i.e. higher ranking) to common stock, but are
subordinate to bonds and other forms of debt.
[0010] Certificate of Designation – The document describing the rights and privileges of the class of securities it
creates.
[0011] Single Stock Futures Contracts (SSFC) – Became effective on November 2, 2002 after passage Commodity
Futures Modernization Act of 2000. They are futures contracts which with the underlying asset being one
particular stock. When purchased, no transmission of share rights or dividends occurs. Being futures contracts
they are traded on margin, thus offering leverage, and they are also considered an “asset class under Internal
Revenue Code 1234(b) for purposes of tacking to determine holding period to recognize long term capital gains
and fair market valuation vs. cost basis as defined under IRC 561.”
[0012] Non Profit 501(c)(3) is an American tax-exempt, nonprofit corporation or association. Section 501(c) of
the United States Internal Revenue Code (26 U.S.C.§ 501(c))
[0013] Exemption of 501(c)(3) to Issue Single Stock Futures Contract - §3(a)(4) of the Securities Act (as amended
through October 13, 2009) contains a specific exemption for the securities of IRC §501(c)(3) non-profit
organizations:
“(4) Any security issued by a person organized and operated exclusively for religious, educational,
benevolent, fraternal, charitable, or reformatory purposes and not for pecuniary profit, and no part of the
net earnings of which inures to the benefit of any person, private stockholder, or individual; or any security
of a fund that is excluded from the definition of a Securities that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940;”
§3(e) of the Exchange Act of 1934 provides:
“(e) Charitable organizations – (1) Exemption – Notwithstanding any other provision of this chapter, but
subject to paragraph (2) of this subsection, a charitable organization, as defined in section 3(c)(10)(D) of the
Investment Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(D)], or any trustee, director, officer, employee, or
volunteer of such a charitable organization acting within the scope of such person's employment or duties
with such organization, shall not be deemed to be a "broker", "dealer", "municipal securities broker",
"municipal securities dealer", "government securities broker", or "government securities dealer" for
purposes of this chapter solely because such organization or person buys, holds, sells, or trades in securities
for its own account in its capacity as trustee or administrator of, or otherwise on behalf of or for the
account of – (A) such a charitable organization; (B) a fund that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)
(10)(B)]; or (C) a trust or other donative instrument described in section 3(c)(10)(B) of the Investment

6
 Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(B)], or the settlors (or potential settlors) or beneficiaries of any
such trust or other instrument.
“(2) Limitation on compensation – The exemption provided under paragraph (1) shall not be available to any
charitable organization, or any trustee, director, officer, employee, or volunteer of such a charitable
organization, unless each person who, on or after 90 days after December 8, 1995, solicits donations on
behalf of such charitable organization from any donor to a fund that is excluded from the definition of an
investment company under section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)
(10)(B)], is either a volunteer or is engaged in the overall fund raising activities of a charitable organization
and receives no commission or other special compensation based on the number or the value of donations
collected for the fund.”
§3(a)(10)(B) and (D) of the Investment Company Act of 1940 provide:
“(B) For the purposes of subparagraph (A)(ii), a fund is described in this subparagraph if such fund is a
pooled income fund, collective trust fund, collective investment fund, or similar fund maintained by a
charitable organization exclusively for the collective investment and reinvestment of one or more of the
following: (i) assets of the general endowment fund or other funds of one or more charitable organizations;
(ii) assets of a pooled income fund; (iii) assets contributed to a charitable organization in exchange for the
issuance of charitable gift annuities; (iv) assets of a charitable remainder trust or of any other trust, the
remainder interests of which are irrevocably dedicated to any charitable organization; (v) assets of a
charitable lead trust; (vi) assets of a trust, the remainder interests of which are revocably dedicated to or
for the benefit of 1 or more charitable organizations, if the ability to revoke the dedication is limited to
circumstances involving – (I) an adverse change in the financial circumstances of a settlor or an income
beneficiary of the trust; (II) a change in the identity of the charitable organization or organizations having
the remainder interest, provided that the new beneficiary is also a charitable organization; or (III) both the
changes described in subclauses (I) and (II); (vii) assets of a trust not described in clauses (i) through (v), the
remainder interests of which are revocably dedicated to a charitable organization, subject to subparagraph
(C); or (viii) such assets as the Commission may prescribe by rule, regulation, or order in accordance with
section 80a6(c) of this title.”
“(D) For purposes of this paragraph – (i) a trust or fund is ‘maintained’ by a charitable organization if the
organization serves as a trustee or administrator of the trust or fund or has the power to remove the
trustees or administrators of the trust or fund and to designate new trustees or administrators; (ii) the term
‘pooled income fund’ has the same meaning as in section 642(c)(5) of title 26; (iii) the term ‘charitable
organization’ means an organization described in paragraphs (1) through (5) of section 170(c) or section
501(c)(3) of title 26; (iv) the term ‘charitable lead trust’ means a trust described in section 170(f)(2)(B),
2055(e)(2)(B), or 2522(c)(2)(B) of title 26; (v) the term ‘charitable remainder trust’ means a charitable
remainder annuity trust or a charitable remainder unitrust, as those terms are defined in section 664(d) of
title 26; and (vi) the term ‘charitable gift annuity’ means an annuity issued by a charitable organization that
is described in section 501(m)(5) of title 26.”
[0014] Small Business – A business that is usually privately owned and operated with a small number of
employees and relatively tely low volume of sales.
[0015] Future Delivery Price – The price to deliver shares underlying a Single Stock Futures Contract (SSFC).
[0016] Fair Market Value – Qualified Holders of SSFC under IRC 1256 will be entitled to ‘tack’ the holding period
of the SSFC onto the holding period of the Capital Stock received pursuant to the terms and provisions of the
SSFC, which qualifies as “capital gain property” within the meaning of IRC §170(b)(1)(C)(iv) to be entitled to treat
the gains or losses realized upon the subsequent sale of the SSFC Capital Stock as ‘long-term’ capital gain or loss,
and the value of the Charitable Deduction for a donation of the SSFC Capital Stock as “qualified appreciated
stock” within the meaning of IRC §170(e)(5)(B), which entitles the SSFC purchaser (the Holder) to deduct on a
1040 tax return or an 1120 tax return the market value” determined by the market quotations published on the
date of the donation or contribution to a charitable or other organization qualified to receive tax deductible
donations under IRC §170(c)(2), rather than the Holder’s ‘purchase price’ in the SSFC Capital Stock, provided only

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that the Holder (and his family as defined in IRC §267(c)(4), above) do not attempt to contribute more than the
10% of the entire outstanding shares of Capital Stock in the corporation to the charitable or other qualified
organization, contrary to the provisions of IRC §170(e)(5)(C) above.
[0017] Internal Revenue Code (IRC) – Federal tax law begins with the Internal Revenue Code (IRC), enacted by
Congress in Title 26 of the United States Code (26 U.S.C.).
[0018] IRC 1234B – Defines a “securities futures contract” as:
“(c) Securities futures contract – For purposes of this section, the term ‘securities futures contract’ means
any security future (as defined in §3(a)(55)(A) of the Securities Exchange Act of 1934, as in effect on the date
of the enactment of this section). The Secretary may prescribe regulations regarding the status of contracts
the values of which are determined directly or indirectly by reference to any index which becomes (or
ceases to be) a narrowbased security index (as defined for purposes of §1256(g)(6)).”
According to the summary of legislative history notes following IRC §1234B, the section was:
“Added {by} Pub. L. 106-554, Sec. 1(a)(7) [title IV, Sec. 401(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A-648;
{and} amended {by} Pub. L. 107-147, title IV, Sec. 412(d)(1)(B), (3)(B), Mar. 9, 2002, 116 Stat. 53, 54; Pub. L.
108- 311, title IV, Sec. 405(a)(1), Oct. 4, 2004, 118 Stat. 1188.)” – (Note that “[ ]” appear in the original; and
“{ }” are used to show additions/insertions to the text of the Legislative History Note to 26 USC §1234B.)
And, §3 (a)(55) thru (57) were added to the Securities Exchange Act of 1934 by P.L. 106-544, enacted Dec.
21, 2000, which also enacted IRC §1234B.
In its entirety, 26 USC §1234B reads:
“Gains or losses from securities futures contracts –
“(a) Treatment of gain or loss – (1) In general – Gain or loss attributable to the sale, exchange, or
termination of a securities futures contract shall be considered gain or loss from the sale or exchange of
property which has the same character as the property to which the contract relates has in the hands of the
taxpayer (or would have in the hands of the taxpayer if acquired by the taxpayer).
“(2) Nonapplication of subsection – This subsection shall not apply to – (A) a contract which constitutes
property described in paragraph (1) or (7) of §1221(a), and (B) any income derived in connection with a
contract which, without regard to this subsection, is treated as other than gain from the sale or exchange of
a capital asset.
“(b) Short-term gains and losses – Except as provided in the regulations under section 1092(b) or this
section, or in §1233, if gain or loss on the sale, exchange, or termination of a securities futures contract to
sell property is considered as gain or loss from the sale or exchange of a capital asset, such gain or loss shall
be treated as short-term capital gain or loss.
“(c) Securities futures contract – For purposes of this section, the term ‘securities futures contract’ means
any security future (as defined in §3(a)(55)(A) of the Securities Exchange Act of 1934, as in effect on the date
of the enactment of this section). The Secretary may prescribe regulations regarding the status of contracts
the values of which are determined directly or indirectly by reference to any index which becomes (or
ceases to be) a narrowbased security index (as defined for purposes of §1256(g)(6)).
“(d) Contracts not treated as commodity futures contracts – For purposes of this title, a securities futures
contract shall not be treated as a commodity futures contract.
“(e) Regulations – The Secretary shall prescribe such regulations as may be appropriate to provide for the
proper treatment of securities futures contracts under this title.
“(f) Cross reference – For special rules relating to dealer securities futures contracts, see §1256.”
Note that §3(a)(55)(A) of the Securities Exchange Act of 1934 was enacted on the same date as IRC §1234B
[0019] IRC 1223(14) – Provides that:

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 “(14) If the security to which a securities futures contract (as defined in §1234B) relates (other than a
contract to which §1256 applies) is acquired in satisfaction of such contract, in determining the period for
which the taxpayer has held such security, there shall be included the period for which the taxpayer held
such contract if such contract was a capital asset in the hands of the taxpayer.”
The contract is not one to which IRC §1256 applies, because the last sentence of IRC §1256(b) limits the
definition of a “§1256 contract” so as to “not include any securities futures contract … unless such contract … is a
dealer securities futures contract.”
The term “dealer securities futures contract” is limited by IRC §1256(g)(9)(A) to contracts which are “entered
into” or “purchased or granted” “by [a] dealer … in the normal course of [the dealer’s] activity of dealing in such
contracts” which are “traded on a qualified board or exchange”, and by IRC §1256(g)(9)(B) to a “person [who]
performs … functions similar to the functions performed by [options dealers] described in paragraph (8)(A).”
And, the “options dealer” described in IRC §1256 (g)(8)(A) is clearly limited to a “person registered with [a]
national securities exchange as a market maker or specialist”, who has the obligation to make a market in one or
more designated securities on a regular and continuous basis, under the provisions of the Securities Exchange
Act of 1934, compiled in 15 USC §78c at 15 USC §78c (a)(38).
[0020] IRS Form 8283 – Generally, if the claimed deduction for an item or group of similar items of donated
property is more than $5,000, you must get a qualified appraisal made by a qualified appraiser, and you must
attach Section B of Form 8283 to your tax return. There are exceptions, discussed later. You should keep the
appraiser's report with your written records. Records are discussed in Publication 526.
The phrase “similar items” means property of the same generic category or type (whether or not donated to the
same donee), such as stamp collections, coin collections, lithographs, paintings, photographs, books, nonpublicly
traded stock, nonpublicly traded securities other than nonpublicly traded stock, land, buildings, clothing,
jewelry, furniture, electronic equipment, household appliances, toys, everyday kitchenware, china, crystal, or
silver. For example, if you give books to three schools and you deduct $2,000, $2,500, and $900, respectively,
your claimed deduction is more than $5,000 for these books. You must get a qualified appraisal of the books and
for each school you must attach a fully completed Form 8283, Section B, to your tax return.
Exceptions.   You do not need an appraisal if the property is:
 Nonpublicly traded stock of $10,000 or less,
 A vehicle (including a car, boat, or airplane) for which your deduction is limited to the gross proceeds
from its sale,
 Qualified intellectual property, such as a patent,
 Certain publicly traded securities described next,
 Inventory and other property donated by a corporation that are “qualified contributions” for the care of
the ill, the needy, or infants, within the meaning of section 170(e)(3)(A) of the Internal Revenue Code,
or
 Stock in trade, inventory, or property held primarily for sale to customers in the ordinary course of your
trade or business.
Although an appraisal is not required for the types of property just listed, you must provide certain information
about a donation of any of these types of property on Form 8283.
Publicly traded securities.   Even if your claimed deduction is more than $5,000, neither a qualified appraisal nor
Section B of Form 8283 is required for publicly traded securities that are:
 Listed on a stock exchange in which quotations are published on a daily basis,
 Regularly traded in a national or regional over-the-counter market for which published quotations are
available, or

9
  Shares of an open-end investment company (mutual fund) for which quotations are published on a
daily basis in a newspaper of general circulation throughout the United States.
Publicly traded securities that meet these requirements must be reported on Form 8283, Section A.
A qualified appraisal is not required, but Form 8283, Section B, Parts I and IV, must be completed, for an issue of
a security that does not meet the requirements just listed but does meet these requirements:
1. The issue is regularly traded during the computation period (defined later) in a market for which there
is an “interdealer quotation system” (defined later),
2. The issuer or agent computes the “average trading price” (defined later) for the same issue for the
computation period,
3. The average trading price and total volume of the issue during the computation period are published in
a newspaper of general circulation throughout the United States, not later than the last day of the
month following the end of the calendar quarter in which the computation period ends,
4. The issuer or agent keeps books and records that list for each transaction during the computation
period the date of settlement of the transaction, the name and address of the broker or dealer making
the market in which the transaction occurred, and the trading price and volume, and
5. The issuer or agent permits the Internal Revenue Service to review the books and records described in
item 4 with respect to transactions during the computation period upon receiving reasonable notice.
An interdealer quotation system is any system of general circulation to brokers and dealers that regularly
disseminates quotations of obligations by two or more identified brokers or dealers who are not related to
either the issuer or agent who computes the average trading price of the security. A quotation sheet prepared
and distributed by a broker or dealer in the regular course of business and containing only quotations of that
broker or dealer is not an interdealer quotation system.
The average trading price is the average price of all transactions (weighted by volume), other than original issue
or redemption transactions, conducted through a United States office of a broker or dealer who maintains a
market in the issue of the security during the computation period. Bid and asked quotations are not taken into
account.
The computation period is weekly during October through December and monthly during January through
September. The weekly computation periods during October through December begin with the first Monday in
October and end with the first Sunday following the last Monday in December.
Nonpublicly traded stock.   If you contribute nonpublicly traded stock, for which you claim a deduction of
$10,000 or less, a qualified appraisal is not required. However, you must attach Form 8283 to your tax return,
with Section B, Parts I and IV, completed.
Deductions of More Than $500,000
If you claim a deduction of more than $500,000 for a donation of property, you must attach a qualified appraisal
of the property to your return. This does not apply to contributions of cash, inventory, publicly traded stock, or
intellectual property. If you do not attach the appraisal, you cannot deduct your contribution, unless your failure
to attach the appraisal is due to reasonable cause and not to willful neglect.
[0021] Securities and Exchange Commission – The U.S. Securities and Exchange Commission (frequently
abbreviated SEC) is a federal agency which holds primary responsibility for enforcing the federal securities laws
and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities
markets in the United States. In addition to the 1934 Act that created it, the SEC enforces the Securities Act of
1933, the Trust Indenture Act of 1939, the Investment Company Act of 1940, the Investment Advisers Act of 1940,
the Sarbanes-Oxley Act of 2002 and other statutes. The SEC was created by section 4 of the Securities Exchange
Act of 1934 (now codified as 15 U.S.C. § 78d and commonly referred to as the 1934 Act).

10
[0022] Rule 144 – Rule 144, promulgated by the SEC under the 1933 Act, permits, under limited circumstances,
the sale of restricted and controlled securities without registration. In addition to restrictions on the minimum
length of time for which such securities must be held and the maximum volume permitted to be sold, the issuer
must agree to the sale. If certain requirements are met, Form 144 must be filed with the SEC. Often, the issuer
requires that a legal opinion be given indicating that the resale complies with the rule. The amount of securities
sold during any subsequent 3-month period generally does not exceed any of the following limitations:
 1% of the stock outstanding
 The average weekly reported volume of trading in the securities on all national securities exchanges for
the preceding 4 weeks
 The average weekly volume of trading of the securities reported through the consolidated transactions
reporting system (NASDAQ)
Notice of resale is provided to the SEC if the amount of securities sold in reliance on Rule 144 in any 3-month
period exceeds 5,000 shares or if they have an aggregate sales price in excess of $50,000. After one year, Rule
144(k) allows for the permanent removal of the restriction except as to 'insiders'.
In cases of mergers, buyouts or takeovers, owners of securities who had previously filed Form 144 and still wish
to sell restricted and controlled securities must refile Form 144 once the merger, buyout or takeover has been
completed.
[0023] Commodity Modernization Act – The United States federal legislation that clarified most over-the-
counter derivatives (“OTC derivatives”) transactions between “sophisticated parties” would not be regulated as
“futures” under the Commodity Exchange Act (CEA) or as “securities” under the federal securities laws. Instead,
the major dealers of those products (banks and securities firms) would continue to have their dealings in OTC
derivatives supervised by their federal regulators under general “safety and soundness” standards. “Functional
regulation” of derivatives products by the Commodity Futures Trading Commission (CFTC) was rejected for
continued “entity-based supervision of OTC derivatives dealers.
[0024] European Clearing Structure – An option that can only be exercised at the end of its life, at its maturity.
BRIEF SUMMARY OF INVENTION
[0025] In accordance with one aspect of the invention, a method supports the electronic commerce marketing
of SSFC’s supported by private business donation of common/preferred stock to a charitable organization. The
method includes the step of proceeding with the business objective in response to a decision by a decision
maker by performing at least one of several other steps. The other steps include:
[0026] A For-Profit Corporation (FPC) wishing to Underwrite a Series of Securities (USS) establishes or identifies
a non-profit 501(c)(3) corporation (NPC) to be a beneficiary of the process;
[0027] A series of securities (preferred and/or common stock) (POCS) from the FPC is then donated to the
designated NPC;
[0028] The NPC performs due diligence on the FPC as it pertains to the POCS, collecting current information as
would be required to register a class of securities under Section 12(g) of the 1934 Securities and Exchange Act;
[0029] Upon acceptable information being provided by the FPC to the NPC in [0005] above, the NPC accepts
the POCS from the FPC and moves them to a Segregated Escrow Account (SEA);
[0030] Upon [0028], [0029] being complete, the NPC then disseminates information as to the FPC and
publishes this information with an enclosed online frame of the NPC website as a sub domain of the URL.
[0031] On the Sub domain NPC URL banner information is presented informing viewer that SSFC’s are available
for purchase.
[0032] Upon viewer clicking on the link in [0031] above, Purchaser will be sent to an Ecommerce Electronic
Checkout Page (EECP) within the NPC sub domain.

11
[0033] In [0032] above Purchaser will be presented the SSFC offer including amount of shares underlying the
SSFC, European Clearing Future Delivery Date (ECFDD), and Delivery Price per Share (DPPS).
[0034] Upon Purchaser wishing to proceed with SSFC purchase, they will be prompted to read, accept and initial
a Uniform Futures Disclosure Form.
[0035] Upon Purchaser successfully completing [0034] above, they will be directed to an electronic checkout
page confirming order and requesting name, address, email, amount, credit card information and security
identification as required by payment gateway.
[0036] Upon FPC being exempt under Regulation T of the Federal Reserve Board, Purchaser will have option to
purchase SSFC using credit, in the form credit card and or other form of electronic credit gateway.
[0037] Upon FPC not being exempt under Regulation T of the Federal Reserve Board Purchaser will be limited to
purchasing SSFC by either electronic check, and or electronic debit transaction.
[0038] Upon Purchaser consummating transaction, a bar-coded receipt and description of the purchase of the
SSFC is generated and sent to the viewer’s email as input in [0035] above.
[0039] Upon Purchaser consummating transaction, a separate email is sent to the Purchaser showing acceptance
and electronic signature of the Uniform Futures Disclosure Form accompanying the [0038] above.
[0040] Upon Purchaser consummating transaction, a separate email is sent notifying viewer of a 3 day right to
rescind the purchase of the SSFC.
[0041] On or about the European Delivery date of the SSFC, an email is sent to the Purchaser detailing the
economics of the SSFC including Fair Market Valuation of the equity build up in the SSFC in accordance to
assisting in the execution of [0003] above.
DESCRIPTION OF THE DRAWINGS
[0042] Non-limiting and non-exhaustive embodiments of the present invention are described with reference to
the accompanying drawings. In the drawings, like reference numerals refer to like parts throughout the various
figures unless otherwise specified.
[0043] FIG. 1 illustrates one example of a logic flow for supporting charitable giving by a business in
furtherance of a profit objective of the business;
[0044] FIG. 2 illustrates the NPC summary of due diligence prior of FPC prior to issuance of SSFC representing
same.
[0045] FIG. 3 illustrates the Process a NPC undertakes to segregate POCS into SSFC Units.
[0046] FIG. 4 illustrates posting of information of the FPC within the NPC website, for the sake of selling SSFC in
same.
[0047] FIG. 5 illustrates the electronic checkout/ecommerce layout and information provided to prospective
purchaser of a SSFC.
[0048] FIG. 6 5a illustrates the process or a prospective purchaser filling out the required information to
determine eligibility of program.reading, accepting and electronically accepting the uniform futures disclosure
form prior to checkout and purchase of a SSFC.
[0049] FIG. 7 illustrates the method of determining whether the purchase of the SSFC qualifies under Regulation
T of the Federal Reserve Board.

[004950] FIG. 68 illustrates process of purchaser accepting the uniform futures disclosure form.NPC emailing
purchaser receipt of purchase of a SSFC.

12
[005051] FIG. 6a 9 illustrates process of purchaser receiving email receipt of uniform futures disclosure
form.NPC emailing purchaser electronically signed uniform futures disclosure form as it pertains to the purchase of
a SSFC.
[00512] FIG. 107 illustrates process of purchaser receiving receipt of purchase of single stock futures contract,
with email verification of same.
[0052] FIG 8 illustrates process of charity informing purchaser of SSFC of value of same for purposes of facilitating
electronic purchase and delivery of same.
[0053] FIG 8a illustrates ecommerce page SSFC owner is directed to from FIG 8 to pay for delivery of shares
underlying SSFC
[0054] FIG 9 illustrates process of charity directing owner of newly delivered of options of delivery.
[0055] FIG 10 illustrates process of charity taking information of who and how many shares are to be donated
and or delivered to purchaser.
[0056] FIG 10a illustrates an instant Fair Market Valuation Opinion being electronically generated for the benefit
of the Donors records.

DETAILED DESCRIPTION OF CERTAIN EMBODIMENTS

[00575] The present invention is described more fully hereinafter with reference to specific illustrative
embodiments. This invention may, however, be embodied in many different forms and should not be construed as
limited to the embodiments set forth herein; rather, these embodiments are provided so that this disclosure will
be thorough and complete, and will fully convey the scope of the invention to those skilled in the art. The methods
may involve one or more entities (including a person, business, non-profit, computer device, or the like)
performing some or all parts of an action, or set of actions. The entities may communicate in-person, over a
network, including a computer network, or the like. The following detailed description is, therefore, not to be
taken in a limiting sense.
[00586] Throughout the specification and claims, the following terms take the meanings explicitly associated
herein, unless the context clearly dictates otherwise. The phrase "in one embodiment" as used herein does not
necessarily refer to the same embodiment, though it may. Furthermore, the phrases "in another embodiment" or
"in an alternate embodiment" as used herein does not necessarily refer to a different embodiment, although it
may. Thus, as described below, various embodiments of the invention may be readily combined, without departing
from the scope or spirit of the invention.
[00597] In addition, as used herein, the term "based on" is not exclusive and allows for being based on additional
factors not described, unless the context clearly dictates otherwise. In addition, throughout the specification, the
meaning of "a," "an," and "the" include plural references. The meaning of "in" includes "in" and "on."
[006058] As used herein, the term "decision maker" refers to a director, an officer, an employee, a committee,
a partner, a general partner, a manager, a member, a trustee, trustee in bankruptcy, agent, attorney-in-fact,
advisor, singly or in any combination, who or which is in a position to make decisions for or on behalf of a business
or affecting a business.
[006159] The term "asset" means an item of property in which the business owns or holds an ownership
interest or beneficial interest, directly or indirectly, and encompasses all forms and varieties of assets, including
without limitation, partial interests, undivided interests, jointly held interests, co-tenancy interests, stock, equity
interests, tangibles, real estate, personality, as well as intangibles of every variety and description, including
without limitation goodwill, paper, interests in litigation, records, intellectual property, and investment interests.
[00620] The terms "stock" and "equity" refer to any type of equity ownership in a business, including preferred
stock, common stock, LLC units, partnership units, or the like.

13
[00631] The ‘invention’ describes a protocol, process and procedure to permit ‘qualified’ ‘Non-Profit Charitable
organizations’ (NPC) (formed and operated for purposes described in Section 501(c)(3)), to sell via electronic
means single stock futures contracts in corporations who have donated common/preferred stock to the Non-
Profit. This process exists in part due to an exemption of 501(c)(3) NPCs to issue Single Stock Futures Contract
under §3(a)(4) of the Securities Act (as amended through October 13, 2009), which contains a specific exemption
for the securities of IRC §501(c)(3) non-profit organizations:
“(4) Any security issued by a person organized and operated exclusively for religious, educational, benevolent,
fraternal, charitable, or reformatory purposes and not for pecuniary profit, and no part of the net earnings of
which inures to the benefit of any person, private stockholder, or individual; or any security of a fund that is
excluded from the definition of a Securities that is excluded from the definition of an investment company
under section 3(c)(10)(B) of the Investment Company Act of 1940;”
§3(e) of the Exchange Act of 1934 provides:
“(e) Charitable organizations – (1) Exemption – Notwithstanding any other provision of this chapter, but
subject to paragraph (2) of this subsection, a charitable organization, as defined in section 3(c)(10)(D) of the
Investment Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(D)], or any trustee, director, officer, employee, or
volunteer of such a charitable organization acting within the scope of such person's employment or duties
with such organization, shall not be deemed to be a "broker", "dealer", "municipal securities broker",
"municipal securities dealer", "government securities broker", or "government securities dealer" for purposes
of this chapter solely because such organization or person buys, holds, sells, or trades in securities for its own
account in its capacity as trustee or administrator of, or otherwise on behalf of or for the account of – (A) such
a charitable organization; (B) a fund that is excluded from the definition of an investment company under
section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(B)]; or (C) a trust or other
donative instrument described in section 3(c)(10)(B) of the Investment Company Act of 1940 [ 15 U.S.C. 80a-
3(c)(10)(B)], or the settlors (or potential settlors) or beneficiaries of any such trust or other instrument.
“(2) Limitation on compensation – The exemption provided under paragraph (1) shall not be available to any
charitable organization, or any trustee, director, officer, employee, or volunteer of such a charitable
organization, unless each person who, on or after 90 days after December 8, 1995, solicits donations on behalf
of such charitable organization from any donor to a fund that is excluded from the definition of an investment
company under section 3(c)(10)(B) of the Investment Company Act of 1940 [15 U.S.C. 80a-3(c)(10)(B)], is
either a volunteer or is engaged in the overall fund raising activities of a charitable organization and receives
no commission or other special compensation based on the number or the value of donations collected for the
fund.”
§3(a)(10)(B) and (D) of the Investment Company Act of 1940 provide:
“(B) For the purposes of subparagraph (A)(ii), a fund is described in this subparagraph if such fund is a pooled
income fund, collective trust fund, collective investment fund, or similar fund maintained by a charitable
organization exclusively for the collective investment and reinvestment of one or more of the following: (i)
assets of the general endowment fund or other funds of one or more charitable organizations; (ii) assets of a
pooled income fund; (iii) assets contributed to a charitable organization in exchange for the issuance of
charitable gift annuities; (iv) assets of a charitable remainder trust or of any other trust, the remainder
interests of which are irrevocably dedicated to any charitable organization; (v) assets of a charitable lead
trust; (vi) assets of a trust, the remainder interests of which are revocably dedicated to or for the benefit of 1
or more charitable organizations, if the ability to revoke the dedication is limited to circumstances involving –
(I) an adverse change in the financial circumstances of a settlor or an income beneficiary of the trust; (II) a
change in the identity of the charitable organization or organizations having the remainder interest, provided
that the new beneficiary is also a charitable organization; or (III) both the changes described in subclauses (I)
and (II); (vii) assets of a trust not described in clauses (i) through (v), the remainder interests of which are
revocably dedicated to a charitable organization, subject to subparagraph (C); or (viii) such assets as the
Commission may prescribe by rule, regulation, or order in accordance with section 80a6(c) of this title.”

14
 “(D) For purposes of this paragraph – (i) a trust or fund is ‘maintained’ by a charitable organization if the
organization serves as a trustee or administrator of the trust or fund or has the power to remove the trustees
or administrators of the trust or fund and to designate new trustees or administrators; (ii) the term ‘pooled
income fund’ has the same meaning as in section 642(c)(5) of title 26; (iii) the term ‘charitable organization’
means an organization described in paragraphs (1) through (5) of section 170(c) or section 501(c)(3) of title 26;
(iv) the term ‘charitable lead trust’ means a trust described in section 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)
(B) of title 26; (v) the term ‘charitable remainder trust’ means a charitable remainder annuity trust or a
charitable remainder unitrust, as those terms are defined in section 664(d) of title 26; and (vi) the term
‘charitable gift annuity’ means an annuity issued by a charitable organization that is described in section
501(m)(5) of title 26.”
[00642] The ‘invention’ involves the formation or selection of a ‘target company’ (i.e., a business or company
which meets the ‘selection criteria’ of the charitable organization) utilizing ‘appropriate criteria’, including the
potential for the ‘target company’ to become a ‘public company’ by meeting ‘essential criteria’ (IBP) which include
the standards required to submit a registration statement with the U.S. Securities and Exchange Commission to
become SEC section 12(g) ‘Reporting Company with a class of securities eligible to trade (either through
registration and or exemption from registration as afforded under CFR 17.230.144 inclusive) on an Domestic,
Foreign or Over the Counter (OTC) exchange and or platform, (or with or through any similar regulatory
organization which supervises and/or regulates the registration or regulation of companies offering their
‘securities’ for purchase to the general public and/or the registration or regulation of securities exchanges) or
similar ‘essential criteria’(IBP).
[00653] In addition to the ‘essential criteria’ indicated above, ‘other criteria’ may include:
[00664] Shares donated to NP by PPV are passed through to NP in a Segregated Escrow Account (SEA) of the NP;
[00675] NP performs due diligence on the PPV and requests the following information about the PPV:
A. Business Plan of PPV;
B. Management Resumes and Officer Director Background;
C. Web site URL;
D. Financials of POCS (audited/reviewed);
E. State of Incorporation and status (current, default, revoked);
F. Authorized, and issued common and preferred stock capital;
G. All options, warrants, and overhang;
H. All Employee Stock Option Plans (ESOP’s), and Incentive Stock Option Plans (ISOP’s);
I. All litigation involving PPV and whether defendant or plaintiff;
J. All schedule of assets (including intellectual property, patents, trademarks, copyrights);
K. All schedules of debts (including convertible debentures);
L. Certificate of designation for each issued class of preferred stock;
M. Signed representation form from PPV that they are not subject and/or qualified under
Regulation T of the Federal Reserve Board.

[00686] NP then divides donated property (common or preferred stock) into individual units;
[00697] NP then issues SSFC’s against the divided units with underlying collateral being (common/preferred stock
of PPV) held in segregated escrow account for insurance of future delivery of collateral upon execution of delivery
of the SSFC;

15
[007068] NP places collected information in 2a-2l of PPV inside the NP website via a clearly Identified Segregated
Frame (ISF) with navigation of available information from PPV;
[007169] NP then places within the ISF a banner identifying to viewer that SSFC in the PPV are available for
purchase;
[00720] Upon donor/investor clicking [0069] above, they are taken to a Ecommerce Electronic Checkout Page
(EECP) identifying the SSFC offer including amount of shares underlying the SSFC, European Clearing Future
Delivery Date (ECFDD), and Delivery Price per Share (DPPS);
[00731] Prior to paying for the SSFC the donor/investor will have to check and initial acceptance of the Uniform
Futures Disclosure Form;
[00724] Upon [00664], [00675], [00686], [00697], [007068], [007169], [00720] & [00713] being executed,
donor/investor will be taken to an electronic payment within the NP internet website;
[00753] Upon donated shares conforming to [00675] subsection L above, purchaser is qualified to pay for the SSFC
via credit card;
[00764] Upon donated shares not conforming to [00675] subsection L above, purchaser is qualified to pay for SSFC
via a debit card and/or automated teller machine card (ATM) or electronic check;
[00775] Upon purchaser concluding transaction, an email is sent to purchaser delivering an electronic receipt of
SSFC purchase;
[00768] Upon purchaser concluding transaction, an email is sent to purchaser delivering electronically signed
uniform futures disclosure form pertaining to SSFC purchase;
[00796] Upon purchaser concluding transaction, an email is sent to purchaser delivering an electronic receipt that
purchaser has right to rescind transaction within three business days;
[008077] Upon purchaser concluding transaction, an email is sent to purchaser prior to delivery date informing of
fair market valuation of SSFC, and choices in taking delivery of same.

16
F ig 1

FPC N o n - p r o f it

1 . F o r P r o f it C o r p o r a t io n g if t s s h a r e s t o a 5 0 1 ( c ) ( 3 ) q u a lif ie d N o n - P r o f it C o r p o r a tio n .

2 . N o n - P r o f it C o r p o r a t io n a c c e p ts g if t e d s h a r e s a n d d e t e r m in e s th a t a s s is t in g th e
c o m p a n y in a B u s in e s s D e v e lo p m e n t in ia t it iv e is in t h e N o n - P r o f it s b e s t in t e r e s t.

17
F ig 2

FPC N o n - p r o f it

1 ) B u s in e s s p la n
2 ) M a n a g e m e n t r e s u m e s a n d o f f ic e r & d ir e c to r s b a c k g r o u n d
3 ) W e b s ite U R L
4 ) A u d ite d f in a n c ia ls o f c o m p a n y
5 ) S ta n d in g w it h s ta t e o f in c o r p o r a t io n
6 ) C a p ita l s tr u c tu r e o f c o m p a n y
7 ) C o m p a n y o v e r h a n g ( o p tio n / w a r r a n t s , e tc )
8 ) E S O P 's / I S O P 's
9 ) L it ig a tio n
1 0 ) S c h e d u le o f d e b ts
1 1 ) S c h e d u le o f a s s e ts

18
F ig 3

FPC N o n - p r o f it

1 ) F o r p r o f it c o r p o r a tio n d o n a te s s h a r e s S eg reg ated

to N o n - p r o f it B ar co d ed
E s cro w
C o lla t e r a l U n it s
2 ) N o n - p r o f it p la c e s d o n a te d s h a r e s in to a A cco u n t 3
s e g r e g a te d e s c r o w a c c o u n t.

3 ) D o n a te d s h a r e s a r e b r o k e n d o w n in to
b a r c o d e d c o lla t e r a l u n its .
4
4 ) S in g le S to c k F u tu r e s C o n tr a c t a r e c r e a te d
fo r e a c h B a r c o d e d C o lla te r a l U n it S in g le S t o c k
F u tu res
5 ) B a r c o d e d a n d C o lla te r a l B a c k e d S in g le
S to c k F u t u r e s C o n tr a c ts a r e p la c e d in C o n tra cts
o n lin e in v e n to r y f o r s a le .

P la c e d in o n lin e
in v e n t o r y

19
F ig 4

1
N O N P R O F I T W e b s it e
( p e r m a n e n t o u te r fr a m e )
N O N P R O F I T W e b s ite ( p e rm

F o r P r o f it C o r p o r a tio n E m b e d d e d I n fo r m a tio n 2 SS FC
6 B anner
4 AD
FPC I 3 S S FC I

F o r P r o f it C o r p o r a tio n E m b e d d e d I n f o r m a tio n W in d o w
a n e n t o u te r fr a m e )

1 ) N o n P r o f it W e b s ite ( p e r m a n e n t o u te r f r a m e )

2 ) F o r P r o f it C o r p o r a tio n I n f o r m a tio n e m b e d d e d ( p e r m a n e n t in n e r f r a m e )
w ith in th e N o n p r o f it w e b s ite s h e ll.

3 ) L in k s th a t o p e n w ith in th e N o n P r o f it W e b s ite S h e ll
d is c lo s in g p u b lic ily a v a ila b le in f o r m a tio n a b o u t t h e F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r f r a m e )

4 ) L in k s th a t o p e n w ith in th e N o n P r o f it W e b s ite S h e ll ( p e r m a n e n t in n e r f r a m e )
d is c lo s in g in f o r m a tio n a b o u t th e F o r P r o f it C o r p o r a t io n S in g le S to c k F u tu r e s C o n t r a c t

5) G r a p h ic a l v ie w in s u p p o r t th a t a ll in fo r m a tio n a b o u t th e F o r P r o f it C o r p o r a tio n a n d / o r
t h e s in g le s t o c k f u t u r e s c o n t r a c t w ill a t a ll tim e s b e w it h in t h e N o n - P r o f it w e b s it e s h e ll
c le a r ly id e n t if ie d b y a n y v ie w e r o r p r o s p e c tiv e p u r c h a s e r .
( N o n P r o f it p e r m a n e n t o u te r fr a m e , w ith F o r P r o f it in f o r m a tio n b e in g p e r m a n e n t in n e r f r a m e

6) B a n n e r A d w ith in th e N o n P r o f it W e b s ite e x p la in in g to v ie w e r / p r o s p e c tiv e p u r c h a s e r

t h a t S in g le S to c k F u tu r e s C o n tr a c t s a r e a v a ila b le f o r p u r c h a s e . ( p e r m a n e n t in n e r f r a m e )

20
F ig 5

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r fr a m e )

P ro d uct D e ta ils R a te T o ta l
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

1 2 3 4

1 ) D e s c r ip tio n o f p r o d u c t ( S in g le S to c k F u tu r e s C o n tr a c t o f E u r e k a F o u n d a tio n 0 0 a 1 ) .

2 ) D e t a ils o f th e S in g le S to c k F u tu r e s C o n tr a c t ( R ig h t to ta k e d e liv e r y o f X a m o u n t
s h a r e s o f Y s t o c k o n o r b e f o r e ( d e liv e r y d a t e ) f o r ( d e liv e r y p r ic e ) p e r s h a r e .

3 ) F u tu r e c o n tr a c t d e p o s it p e r s h a r e .

4 ) C a lc u la t e d f ie ld c o n s is t in g o f t h e f o r m u la o f ,
( A m o u n t o f s h a r e s ) x ( F u tu r e c o n tr a c t d e p o s it p e r s h a r e ) .

5 ) P r o c e e d to C h e c k o u t B o x

21
F ig 5 a

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o fit C o r p o r a tio n
( p e r m a n e n t in n e r f r a m e )

F ir s t N a m e

Last N am e
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

A d d re ss

C ity

S ta te

Z ip

C r e d it C a r d
I n fo r m a tio n

S e c u r ity C o d e

22
F ig 6

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a t io n
( p e r m a n e n t in n e r fr a m e )

U n ifo r m F u tu r e s D is c lo s u r e F o r m 1
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

( F ir s t N a m e ) ( L a s t N a m e ) 2

( L a n g u a g e o f D is c lo s u r e ) 3

( D e liv e r y D a te ) 4

( D e liv e r y P r ic e p e r s h a r e ) 5

I h a v e r e a d a n d a g r e e to
6
th e u n if o r m f u t u r e s f o r m E le c tr o n ic S ig n a tu r e 7

1 ) A u to g e n e r a t e d c u s to m iz e d U n if o r m F u t u r e s D is c lo s u r e F o r m
2 ) F ir s t a n d L a s t N a m e d r a w n b y in ta k e f o r m
3 ) L a n g u a g e o f d is c lo s u r e a g r e e m e n t
4 ) D e liv e r y d a te o f s h a r e s / e x p ir a tio n o f S S F C .
5 ) D e liv e r y P r ic e p e r s h a r e
6 ) C o n f ir m a tio n o f a c c e p ta n c e o f te r m s
7 ) E le c tr o n ic s ig n a t u r e
8 ) C o n tin u e to c h e c k o u t

23
F ig 6 a

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a t io n
( p e r m a n e n t in n e r fr a m e )

U n ifo r m F u tu r e s D is c lo s u r e F o r m
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

( F ir s t N a m e ) ( L a s t N a m e )

( L a n g u a g e o f D is c lo s u r e )

( D e liv e r y D a te )

( D e liv e r y P r ic e p e r s h a r e )

F u tu r e s D is c lo s u r e D o c u m e n t S e n t to ( E m a il)

1 ) C o n f ir m a t io n p a g e th a t U n if o r m F u t u r e s D is c lo s u r e F o r m
w a s s e n t to p u r c h a s e r s e m a il a d d r e s s .

24
F ig 7

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a t io n
( p e r m a n e n t in n e r fr a m e )

S in g le S t o c k F u t u r e s C o n t r a c t 1
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

( F ir s t N a m e ) ( L a s t N a m e ) 2

( L a n g u a g e o f S in g le S t o c k F u tu r e s C o n tr a c t ) 3

(A m o u n t o f S h a re s ) 4

(Is s u e r o f S h a re s ) 5

( P h y s ic a l L o c a tio n o f S h a r e s ) 6

( D e liv e r y D a te ) 7

( D e liv e r y P r ic e p e r s h a r e ) 8

S S F C S e n t to ( E m a il)

1 ) A u t o g e n e r a te d S in g le S t o c k F u t u r e s C o n t r a c t w it h d a t e o f p u r c h a s e
2 ) F ir s t a n d L a s t n a m e o f O w n e r
3 ) L a n g u a g e o f S in g le S to c k F u t u r e s C o n tr a c t
4 ) A m o u n t o f sh a re s
5 ) I s s u e r o f s h a r e s ( u n d e r ly in g c o lla te r a l)
6 ) P h y s ic a l lo c a tio n o f S h a r e s
7 ) D e liv e r y D a te ( e x p ir a tio n d a t e ) o f S in g le s to c k f u tu r e s c o n t r a c t
8 ) D e liv e r y p r ic e p e r s h a r e
9 ) c o n f ir m a tio n th a t S in g le S t o c k F u tu r e s c o n tr a c t w a s s e n t to e m a il p r o v id e d .

25
F ig 8

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r fr a m e )

S in g le S to c k F u t u r e s C o n t r a c t # 1
( p e r m a n e n t o u te r fr a m e )

U n d e r ly in g C o lla t e r a l o f C o n tr a c t
N o n - P r o fit W e b s ite

T o ta l A m o u n t o f S h a r e s A v a ila b le 3

T o ta l A m o u n t o f S h a r e t o D e liv e r 4

D e liv e r y P r ic e p e r S h a r e 5

B id P r ic e 6

A s k P r ic e 7

F a ir M a r k e t V a lu a tio n P r ic e 8
10

T o ta l 9

1 ) B a r C o d e d S in g le S t o c k F u tu r e s C o n tr a c t w h ic h m a tc h e s P h y s ic a l C o n tr a c t S e n t .
2 ) I d e n tif ic a tio n o f U n d e r ly in g C o lla te r a l o f th e S in g le S to c k F u tu r e s C o n t r a c t ( S t o c k ) .
3 ) T o ta l A m o u n t o f S h a r e s A v a ila b le U n d e r th e S in g le S t o c k F u tu r e s C o n t r a c t .
4 ) T o ta l A m o u n t o f S h a r e s O w n e r o f C o n tr a c t W a n ts to T a k e D e liv e r y O n ( I n p u t F ie ld ) .
5 ) D e liv e r y P r ic e p e r S h a r e .
6 ) B id P r ic e o f U n d e r ly in g S to c k a t th e C lo s e o f B u s in e s s .
7 ) A s k P r ic e o f U n d e r ly in g S to c k a t t h e C lo s e o f B u s in e s s .
8 ) F a ir M a r k e t V a lu a tio n P r ic e o f S h a r e s ( B id + A s k / 2 ) + V a r ia b le s o f V a lu a tio n )
9 ) T o t a l ( c a lc u la t e d f ie ld ( D e liv e r y P r ic e p e r S h a r e * T o ta l A m o u n t o f S h a r e s t o D e liv e r ) .
1 0 ) C o n tin u e to c h e c k o u t ( g o to F I G 8 a )

26
F ig 8 a

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r fr a m e )

F ir s t N a m e
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

Last N am e

A d d re ss

C ity

S ta te

Z ip

C r e d it C a r d
I n fo r m a tio n

S e c u r ity C o d e

27
F ig 9

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r fr a m e )

C o m p a n y S h a re s
( p e r m a n e n t o u te r fr a m e )

T o ta l A m o u n t o f S h a r e s O w n e d
N o n - P r o fit W e b s ite

T o ta l A m o u n t to T a k e in Y o u r N a m e

T o ta l A m o u n t to D o n a te in C h a r ity

D o y o u W a n t to D o n a te t o a C h a r it y
w h ic h h a s b e e n p r e - q u a lif ie d a n d c a n
g iv e in s ta n t r e c e ip t a n d F a ir M a r k e t
O p in io n o f D o n a tio n

YES NO

28
F ig 1 0

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

F o r P r o f it C o r p o r a tio n
( p e r m a n e n t in n e r fr a m e )

C o m p a n y S h a re s I n p u t F ie ld
( p e r m a n e n t o u te r fr a m e )

T o ta l A m o u n t o f S h a r e s O w n e d
N o n - P r o fit W e b s ite

C a lle d F ie ld

D a t e w h ic h S S F C w a s A c q u ir e d
C a lle d F ie ld
A r e Y o u a n O f f ic e r o f D ir e c to r
o f th e S h a r e s U n d e r ly in g th e S S F C Y E S /N O

D a t e a t w h ic h y o u t o o k d e liv e r o f
C a lle d F ie ld
th e s h a r e s u n d e r ly in g S S F C

C h a r it y to w h ic h y o u w a n t t o
d o n a te s h a r e s to S c r o ll B o x o f P r e Q u a lif ie d C h a r itie s

A m o u n t o f S h a r e s I w a n to D o n a te In p u t

I a u t h o r iz e E u r e k a F o u n d a t io n t o s e n d s h a r e s im m e d ia te ly
E le c tr o n ic S ig n a tu r e
in th e a m o u n t t o t h e d e s ig n a te d a b o v e to th e C h a r it y id e n tif ie d .

D o n a te S h a re s

29
F ig 1 0 a

N o n - P r o f it W e b s it e
( p e r m a n e n t o u te r fr a m e )

L a w F ir m L e tte r h e a d D a te

T o w h o m it m a y c o n c e r n :

( I n d iv id u a l/ c o m p a n y ) o n th is d a te d o n a te d ( A m o u n t o f s h a r e s ) o f ( C o m p a n y N a m e )
( S to c k S y m b o l) .
( p e r m a n e n t o u te r fr a m e )
N o n - P r o fit W e b s ite

W e h a v e r e c e iv e d R e p r e s e n ta t io n f r o m d o n o r th a t th e y a r e n o t a n o f f ic e r o r d ir e c to r , a n d
th e a v e r a g e c lo s in g s h a r e s p r ic e o n d a y o f d o n a tio n w a s ( C a lc u la te d F ie ld - ( B id + A s k / 2 )

T h e C h a ir ty w h ic h r e c e iv e d th e s h a r e s v ia a n ir r e v o c a b le tr a n s f e r is a c h a ir ty in g o o d
w ith t h e I R S , h a s f ile d c u r r e n t f o r m 9 9 0 's a n d is c u r r e n t a n d g o o d s t a n d in g w ith th e
s e c r e ta r y o f s ta te in w h ic h th e y a r e in c o r p o r a te d .

I n o u r o p in io n th e c h a r ity w o u ld b e q u a lif ie d a s a ( P r iv a t e / P u b lic ) ( C h a r ity / F o u n d a tio n )

a n d t h a t th e d o n a t io n o f s h a r e s f o r v a lu a tio n p u r p o s e s o f th e d o n a tio n w o u ld b e

$ 1 0 0 , 0 0 0 d o lla r s

S ig n a tu r e o f L a w y e r

S e n d a s E m a il

30
31