"Fire Sale" Memo

To: From: CC: Date: Subject:

John Tuld Patrick Dhenny Allen Sam Rogers March 4,2014 Fire Sale Dismissal

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Despite the emergency situation regarding the company's future and survival, I must say that I disagree with the implementation of the fire sale. With every risky decision* lies lucrative outcomes or costly downsides.*,1-\g matter the aftermath of the decisiorf made, we must face the end result Wj!illtgq$. A company is only as good as its relationships in all aspects of business including employees and those we've dealt business with. Please be aware that our good relationships in the past have brought us to a comfortable status now, and should we dare disrupt this reputation with this fire sale, I fear the future won't yield beneficial results for the company and its people.

Since we have been running our company on well-grounded values thus far until this dilemma arose, it is unreasonable to suddenly shift from a tried and true approach of trust with all our dealings, and have it suddenly flip to a dramatic all-or-nothing decision that could be avoided. Putting the fire sale in effect is asking for a break in all our relationships with not only employees, but also customers and businesses that we have traded with all this time. lt is true that we'll survive by selling products of no value before the customers and businesses that bought from us, realize that they have been tricked; however, how will it benefit us to have those businesses booted out the market and have no one to trade with afterwards? Willthe money collected before the truth comes out last us forever? Will this action make a name for our company?

ln the business world, no company is an island. lt requires continuous support and relationships not only with employees, but also with the other business and customers in this market. Money is not so much the main focus as opposed to the help that got us money in the first place. Those "help" trusted us with our business, and without it, our success will be only short-lived. lf we let our ethical frame of mind be undermined by the desire for monetary gain, we might as welljust give up now, because at this rate, this is where we're heading. With this fire sale, employees including you and l, may end up losing credibility and be prevented from further job opportunities by engaging in selling these mortgage-back securities; with this fire sale, customers won't trust our business dealings; with this fire sale, business, if any left at all after the fire sale, will not think twice to reject their partnership with us.

teq"Q.7 Being the understanding and capable employee that you are, I highly encourage you to devise another plan that is more ethically sound. This fire sale is iust qoing to Qreate a ,,r;La bigger fire when it doesn't have to be. We don't have to deal with our company losing credibility, nor our employees defamed, nor our business partners left in doubt of our abilities. Have faith in the support around you, and all the blessings will surely follow.