2014 ESOP INVITATIONAL HOW AN ESOP TRUSTEE TEAM SHOULD PROPERLY AND - PowerPoint PPT Presentation

2014 ESOP INVITATIONAL HOW AN ESOP TRUSTEE TEAM SHOULD PROPERLY AND DIL ILIGENTY ACQUIRE STOCK MARCH 24, , 2014 M IC EL R. H OLZ OLZMAN , , E SQ SQ . N EIL EIL M. B RO ZEN , , CP CPA G RE ORY J. H OGAN OGAN , , ASA ICHAEL ROZE REGOR P AR NER V ICE P RE IDENT P RI AL ARTNE RESID RINCIP IPAL D IC INSON W RI RIGHT PLLC LLC BTC ESOP S ER BTC VICES SC&H C AP AL , , LLC LLC ICKINS ERVIC APIT ITAL W AS TON , , DC DC M INNEA IS , , MN B ALT ORE , , MD ASHING INGTO EAPOLIS ALTIM IMOR (2 (202) ) 659-6931 (612) (6 ) 747 747-8671 (410) (4 ) 785-8023 AN @ DIC IGHT . COM ROZEN @ BANKERSTRU RUST . COM OGAN @ SCAN ANDH . COM MHOL OLZMAN ICKIN INSON ONWRIG NB NBRO GH GHOGAN

 H OW OW DOES ES A TRU STEE TEA EAM EV LUATE THE TER ERMS AND ND RUST EVALUA IONS UPO UPON WHICH AN AN ES ESOP WILL PUR CHASE ST CK ? CO COND NDIT ITIO PURCH STOCK  T IMELIN INE OF OF AN AN ES ESOP DEA EAL ?  R OLES LES OF OF TRU STEE TEA EAM MEM RS RUST EMBE BERS  W HAT HAT ARE RE THE LEG LEGAL , , VALUA ION & & FIDUC IARY LUATIO UCIA IONS ? CO CONSI NSIDER ERATIO

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  H YPOTHETIC ICAL TRA ION TIMELIN INE RANSA NSACTIO  3-4 4 MO NTH TI ME FR FRAME MONT TIME  T RA ION DES ESIGN PH SE TYP ICALLY CO ETE PRIO PRIOR TO TO RANSA NSACTIO PHASE YPIC COMPLET STEE BE NG EN ED TRU RUST BEING ENGAGED  C OMP MPANY ADVISO VISORS (F (F INANCIAL AND ND L EGAL GAL )  V ALUA ION , , STR ING AND AND FINANC ING ALUATION STRUC UCTUR URIN NANCIN  L EGA EGAL IMPLIC IONS ICATION

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  S EL ION OF OF PRO IONAL ADVISORS RS ELECTIO PROFES ESSIO  T RU STEE AND ND FINA IAL ADVISO SOR DEA EAL OVER IEW RUST NANC NCIA ERVIE  E NG ENT AGRE ENTS NGAGEMEN REEM EMEN

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  D UE UE DILIG ENCE RE ST AND ND DATA RO ROOM ACCE SS IGEN REQUE QUEST CCESS  K ICKOFF MEE ING EETIN  C OMP MPANY B ACKG CKGROUND  T RANSA SACTION S TR TRUCTURE  F INA NANCING  T IMELINE

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  K EY EY ARE REAS FOR VALUA ION AND ND LEG LEGAL DILIG LIGENCE LUATIO  H IST STORICAL FI NANCIAL RESU SULTS & & ADJUSTMENTS FINA  P ROJECTIONS  C OMP MPETITIVE PO POSITION OF OF THE THE CO MPANY COMP  C OMP MPANY SPE FIC RISK FA CTORS PECIFI FACT  L ITIG TIGATION  C ORPOR PORATE RECO DS CORDS

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  I NI IAL TER ERM SH EET NITIA SHEE  F IDUCIARY OBLI BLIGATIONS OF OF THE TRU STEE ? RUST  ESO SOP PA YS NO NOT MO MORE THA THAN FA FAIR MA MARKET VA VALUE PAYS  F INA NANCING TE TERMS ARE ARE NO NOT MO MORE THA THAN MA MARKET  O VER VERALL FA FAIRNESS  D EL ERY OF OF VALUA LUATION ANA IS ELIV IVER NALYS LYSIS  C OMMIT EE MEE ING ITTEE EETIN

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  K EY EY DEA EAL ISSUE SSUES  P UR SE PR PRICE URCHASE  F INA NANCING TE TERMS FO FOR SELLER NOTE NOTES ( INT NTEREST RATE TE & & WA WARRANTS )  M ANAGEMENT INCE NCENTIVE PL PLAN  E MPL MPLOYMENT CO NTRACTS CONT  C ORPOR PORATE GO VERNANCE ITE TEMS GOVER  L EGAL TE TERMS ( IND MNIFICATION , , REPS PS & & WA WARRANTIES ) NDEMN

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  N EG IATING PRO CESS EGOTIA PROCE  C OUN UNTER OFFE FFER BY BY TR USTEE TE TEAM TRUST  I DENTIFI FICATION OF OF KEY DEAL ISSUES  F INA NAL NE NEGOTIATIONS OF OF OPE PEN ITE TEMS

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  E NSUR NSURE TRA ION DOCUM ENTS MATCH CH LO LOI TER ERMS RANSA NSACTIO CUMEN  S TOC TOCK PUR PURCHASE AGR GREEMENT  M ANAGEMENT INCE NCENTIVE PL PLAN  S ELLER NO TES & & WA WARRANT AGR GREEMENTS NOTES  R EV EVIEW OF OF FINA NCING DOCUM CUMENTS NANC  P RE ION OF OF FINA NAL VALUA ION AND ND FAIRN ESS OPI NION REPA PARATIO LUATIO RNES PINI  F INAL CO ITTEE MEE ING COMMIT EETIN

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  E XEC ION OF OF ALL LL TRA ION DOCUM ENTS ECUTIO RANSA NSACTIO CUMEN  ING OF OF DEA EAL FUND UNDIN

Engag age Trustee Term Sheet is Team Presente ted Final al LOI Closin ing Transac action tion Dilige igence Design Negotia iation ions Documentat tation ion 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 Week 1 1  F INANCIAL PRO IONS PROJEC JECTIO  D EA EAL TEA EAM WITH LI ITED ES ESOP EX IENCE LIMIT EXPER PERIE  B AD AD FAITH ACT RS CTORS

QUESTIONS? M IC EL R. H OLZ OLZMAN , , E SQ SQ . N EIL EIL B RO ZEN G RE ORY J. H OGAN OGAN , , ASA ICHAEL ROZE REGOR P AR NER V ICE P RE IDENT P RI AL ARTNE RESID RINCIP IPAL D IC INSON W RI RIGHT PLLC LLC BTC ESOP S ER BTC VICES SC&H C AP AL , , LLC LLC ICKINS ERVIC APIT ITAL W AS TON , , DC DC M INNEA IS , , MN B ALT ORE , , MD ASHING INGTO EAPOLIS ALTIM IMOR (202) (2 ) 659-6931 (6 (612) ) 747 747-8671 (4 (410) ) 785-8023 AN @ DIC IGHT . COM ROZEN @ BANKERSTRU RUST . COM OGAN @ SCAN ANDH . COM MHOL OLZMAN ICKIN INSON ONWRIG NBRO NB GH GHOGAN