Subject: File No. S7-07-12
From: Bob Snyder

December 6, 2012

I believe that an operating agreement should be in place for any private company raising money. I think some kind of third party trust account managed by a bank or such should be used to manage the funds according to the operating agreement. Bank Statements for that account should be available to the investors. Accounting statements should be online and available at least monthly. Officers of the company should have background checks which are available. Tangable assets like real estate and equipment should be insured including against theft and embezzelment. There should be a waiting period on an investment decision like franchises etc.

Companies looking for investment should be able to easily create a seperate company for assets like IP(copyrights, trademarks, patents), equipment, property covered by insurance that can be invested which can be leased to the riskier part of the company.