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Oc t o b e r2 3 , 2 0 1 7 Sa n d yPr i nc i p l e s :Ro l eo fSa n dyWo o d Ne g o t i a t i o nPl a n n i n gSt r a t e g y

Ne g o t i a t i o n:Vi ki n gI n v e s t me nt Ro l e :Sa n d yWo o d( Wo o dCr a f t e r s ) Wha ti s s ue sa r emo s ti mpo r t a ntt oy o u? 1 .Sa v i n gt h eb a n kr up t c y , f o rt h a th en e e d sb e l o wf r o mPa t a .Ge tt h ei n v oi c ec l e a ri nn e x t1 5d a y s ,s oy o uc a np a yt h el umb e rs u p p l i e r b .Ge t t i ngVi ki n gI n v e s t me n t s( Pa t )t oa p p r o v et h ene wI n v o i c ef o r$ 9 5 0 , 00 0 c .Ma k es u r ePa td o n ’ tc a l lb a c k$ 2 0 0, 0 0 0l o a n 2 .Re n e wt h el e a s eo nt h ec u r r e n tb u i l di n ga n dt h a tt o oa tl o we rr e n to f$ 4 , 00 0

Wha ti sy o urBATNA?Re s e r v a t i o nPr i c e ?Ta r g e t ?

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BATNA-Al t h o u g hSa n d yha sv e r yl i mi t e ds e to fo p t i on s ,s oav e r yp o orBATNA. It h i n kh i sBATNAi nt hi ss i t u a t i on si s o Ei t h e rDe c l a r eBa n kr u p t c yo rSe l lt h eh ou s e

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Re s e r v a t i onp r i c e :Th er e s e r v a t i o np r i c ef o rSa n d ywi l lb ep oi n twh e r eh ei sa b l e t op a yo ffa l lh i sl i a b i l i t i e s( f r o mt h emo n e yh er e c e i v ef r o m Pa )a n ds a v e Ba n kr u p t c y .Sot h e r ec a nb emu l t i p l ewa y si nwh i c hh ec a na c hi e v et h i s o Soi fPa td o e sn otc a l lb a c kl o a n ,Sa n d yh a st o t a ll i a bi l i t i e so f$ 9 2 0 , 0 0 0.So a f t e rd e d u c t i n gt hec a s h ,Sa n d yn e e d s$ 9 10 , 0 0 0f r om Pa t .So$ 9 1 0 , 0 0 0i n t e r mo fn e wi n v oi c ec a nb eo n ep os s i b l er e s e r v a t i o np r i c e . o Soi fPa td oe sn o ta gr e ef o rh i g he ri n v oi c e .Ot h e rr e s e r v a t i o np r i c ef o r Sa n d yc a nb ePa ta gr e et os o mefin a n c i n gs c h e me ,wh e r eh eg i v e smon e y t oSa nd ya tav e r yl o wi n t e r e s tr a t es ot h a th ec a ns a v eBa nkr u p t c y .

Ta r g e tp r i c e :Pa ta g r e e sf ori n v oi c eo f$ 95 0 , 0 0 0.Al s oh ea g r e e sf o rr e n e wa lo fl e a s e wi t hr e n to f$ 4 , 0 0 0 .

Wha ta r ey o urs our c e so fpo we r ? I nt h i sc a s eSa n d yh a sv e r yl i mi t e ds o u r c e so fp o we r : 1)On es o u r c eo fpo we ri st oma k ePa tu nd e r s t a n dt h a tBa nk r up t c yi sg o i n gt ohe l p n oo n e .Soi fSa n d yg o e sb a nkr up t ,e v e nPa twi l ln o tg e tb a c kh i se n t i r emo ne y . Al s o wha t e v e rmo n e yh e wi l lg e twi l lb ea f t e rs o me d e l a ya sBa n kr u p t c y me c h a ni s mt a k e st i me .

2)Fu r t he rSa n d yc a nu s ee mo t i o na la r g ume nt s .Su c ha st h e yh a v ek n o wne a c ho t h e r f orl o n gt i mea n dt h e r er e l a t i o n sg o e sl o n gwa y . 3)Al s oSa n dyh a sb e e nwo r ki n go nPa tp r o j e c t sf o rl on gt i mea n dv e r ys ma l lpr o fit ma r gi n, Wha ti s s ue sa r emo s ti mpor t a ntt oy o uro ppo ne nt ? 1 .Pa y i n go n l y$ 7 0 0 , 0 0 0f o rc o n d o mi ni u mp r o j e c t 2 .Ge t t i n gb a c kh i s$ 2 0 0, 0 0 0l o a nb a c k 3 .Ge t t i n gh i sa p a r t me n tl e a s e d

Wha ti sy o uro ppo ne nt ’ sBATNA?Re s e r v a t i o nPr i c e ?Ta r g e t ? 1 .BATNA:Le tSa n d yd e c l a r eb a n kr u p t c ya n dg e tb e l o wmo n e y To t a ll i a bi l i t i e si fSa n d yde c l a r eBa n kr u p t c y I t e m I n v o i c ef o ro a k : Pa y r o l l( wo r k e r sa l r e a d yh a v et h e i rc h e c k si nh a n d ) Co n s t r u c t i o nma t e r i a l si n v o i c e d Pa s td u er e n t Ca l l a bl eLo a n To t a l

Amo un t 7 0 0 , 0 0 0 1 60 , 0 00 5 0 , 0 0 0 1 0 , 0 0 0 2 0 0 , 0 0 0 1 , 1 2 0 , 0 0 0

Pl ust o t a la s s e t so fSa n d yi nc a s eo fBa nkr u p t c ywi l lb e$ 7 1 0 , 0 0 0+Se l lp r i c eo fh o u s e mi n u smo r t g a g eo f$ 40 0 , 0 00 .Soi fh ou s es e l l sa t$ 8 0 0 , 0 0 0 ,t o t a la s s e t sf o rSa n d ywi l lb e 1 , 1 1 0 , 0 0 0wh i c ha l mo s tc o v e rh i sl i a b i l i t i e s .Soi nc a s eo fSa nd yde c l a r eBa n kr u p t c y ,Pa t wi l la b l et or e c e i v emo s to fhi smo n e yt h r o u g hBa n kr u p t c yp r o c e e d i n g . Fur t he ri nc a s eh ewi l lh a v et or e n tt h eb u i l d i n gPa twa sl e a s i n gt omo s t l yal o we rr e n t . 2 .Re s e r v a t i o nPr i c e -Pa ti si nv e r ys t r o n gp o s i t i o nl e g a l l y .Sos t r i c t l ys p e a ki n ga n y t h i n g hep a y smo r et h a n$ 7 00 , 0 0 0i sh i sl o s sa sh i si sl e g a l l yn o tr e qu i r e dt op a ymo r e .SoI t hi n kPa twi l ln otb ei n c l i n e dt op a ya n y t hi n gmo r et h a n$ 7 0 0 , 0 0 0f o rt h ei n v o i c e . 3 .Ta r g e tPr i c e -$ 7 00 , 0 0 0f ori n v o i c e ,p l usr e n e wa lofl e a s ea t$ 5, 0 0 0p e rmo n t h

Wha ta r ey o uro ppo ne nt ’ ss o ur c e sofpo we r ? 1 .Le g a l l yhei si ns t r o n gp o s i t i o n.Soa sp e rc o n t r a c th ei so n l yr e qu i r e dt op a yj us t $7 0 0 , 0 0t h a tt o oa f t e ro n emo n t ho fi n v o i c ed a t e 2 .Hec a nc a l lb a c kl o a no f$ 2 0 0 , 00 0a n yt i mea n df or c es a n d yi n t oBa nkr u p t c y 3 .Ev e ni nc a s eo fBa nk r u pt c y ,a sp e ra bo v ec a l c u l a t i o nh ewi l lg e tb a c ka l mo s th i se n t i r e

mo n e y .J u s twi t hl i t t l ed e l a y Wha ti sy o uro pe ni ngmo v e / fir s ts t r a t e g y ?Ot he ri mpo r t a nti nf o r ma t i on? I t ’ sv e r yc l e a r ,s a n d yc a n ’ tf o r c ePa tt oma ymo r et h a n$ 7 0 0 , 0 0 0i nt e r mso fi n v oi c e . Ho we v e rt os t o pg e t t i n gb a n kr u p th ene e d s$ 9 10 , 0 0 0f r o m Pa t( p l u sPa ts h o ul dno tc a l l b a c kl o a n ) . Somyo p e n i n gs t r a t e g ywi l ln o tbec o n f r o n t a t i on a l ,o nt heo t h e rh a n di twi l lb ee mo t i o n a l s p e e c h .Iwi l lma k ePa tu n d e r s t a n dt h a tu s e so fh i g he rq ua l i t yl u mbe rwa song o o df a i t h a n dIs h o u l dn o tp e n a l i z e df o rt h a t .Pl u si fIg e tb a n kr u p t ,Pa twi l lo n l yg e tb a c kp o r t i o no f h i smo n e ya n dt h a tt o owi t hd e l a y . Sofir s tIwi l lr e q u e s tPa tt oc o v e rj u s tt h ec o s to fPr o j e c tt h a ti sp a yme$ 9 , 1 0 0p e ru ni t ( Wh i c hwi l ls a v emef o r mb a n kr u p t c y ) .I fh ed o n ’ ta gr e et ot ha t ,Iwi l la s kh i mt oc o v e ra t l e a s t5 0 6 0 %o fi n c r e a s e dc o s ta n df o rr e a mi n gmo n e yg i v emea ni n t e r e s tf r e eo ral o w i n t e r e s tl o a n .Fu r t h e rd u et omyp oo rfin a n c i a lc o ndi t i o na l l o w met or e n e wl e a s ea t $ 4 , 0 0 0p e rmon t hr e n t ....