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SCHEDULE 13E-3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 2O549
Rule 13e-3 Transaction Statement
(Pursuant to Section 13(e) of the
Securities Exchange Act of 1934)
BIG O TIRES, INC.
------------------------------------------
(Name of the Issuer)
BOTI Holdings, Inc.
BOTI Acquisition Corp.
Big O Tires, Inc.
------------------------------------------
(Name of Person(s) Filing Statement)
Common Stock, par value $.10 per share
(Title of Class of Securities)
089324206
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(CUSIP Number of Class of Securities)
Richard M. Russo, Esq.
GIBSON, DUNN & CRUTCHER
1801 California Street, Suite 4100
Denver, Colorado 80202
(303) 298-5700
------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications on Behalf of
Person(s) Filing Statement)
This statement is filed in connection with (check the appropriate
box):
a. [x] The filing of solicitation materials or an information
statement subject to Regulation 14A, Regulation 14C or Rule 13e-3(c) under the
Securities Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities
Act of 1933.
c. [ ] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information
statement referred to in checking box (a) are preliminary copies: [X].
Calculation of Filing Fee
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Transaction valuation Amount of Filing Fee*
$56,699,686.00 $11,339.94
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* The filing fee is calculated as 1/50 of 1% of the transaction value
of $56,699,686.00 (based on the purchase of 3,317,840 shares of common stock for
a total price of $54,744,360 and the cancellation of 216,308 options at a total
price of $1,955,326).
[X] Check box if any part of the fee is offset as provided by Rule 0-11(a)(2)
and identify the filing with which the offsetting fee was previously paid.
Identify the previous filing by registration statement number, or the Form
or Schedule and the date of its filing.
Amount Previously Paid . . . . . . . . . . . . . $11,339.94
Form or Registration No.: . . . . . . . . . . . . Schedule 14A
Filing Party: . . . . . . . . . . . . . . . . . . Big O Tires, Inc.
Date Filed: . . . . . . . . . . . . . . . . . . . November 20, 1995
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INTRODUCTION
This Rule 13e-3 Transaction Statement (the "Statement") relates to a
Proxy Statement (the "Proxy Statement") of Big O Tires, Inc., a Nevada
corporation (the "Company") and the issuer of the class of equity securities to
which this Statement relates, concerning the proposed merger (the "Merger") of
BOTI Acquisition Corp., a Nevada corporation (the "Purchaser") and a wholly
owned subsidiary of BOTI Holdings, Inc., a Nevada corporation (the "Parent"),
with and into the Company, pursuant to which each outstanding share of Common
Stock, par value $0.10 per share (the "Common Stock"), of the Company, except
certain excluded shares, will be canceled and converted into the right to
receive $16.50 in cash, upon the terms and subject to the conditions set forth
in the Agreement and Plan of Merger, dated as of July 24, 1995, as amended,
among the Parent, the Purchaser and the Company (the "Merger Agreement") (a copy
of which is filed as Appendix A to the Proxy Statement which is attached hereto
as Exhibit (d)(1)).
The information contained or incorporated herein with respect to the
Parent, the Purchaser and plans for the Company after the consummation of the
Merger has been provided by the Parent. All other information contained or
incorporated herein has been provided by the Company.
The following cross reference sheet is being supplied pursuant to
General Instruction F to Schedule 13E-3 and shows the location, in the Proxy
Statement filed by the Company with the Securities and Exchange Commission on
the date hereof, of the information required to be included in response to the
items of this Statement. With respect to the information required to be
included in response to Item 14 of this Statement, the cross-reference sheet
indicates the location of such information in the Company's Annual Report on
Form 10-K for the fiscal year ended December 31, 1994 (the "Annual Report") or
the Company's Quarterly Report on Form 10-Q for the quarter ended September 30,
1995 (the "Quarterly Report"). Copies of the Annual Report and the Quarterly
Report will be furnished to stockholders with the Proxy Statement. The
information in the Proxy Statement, the Annual Report, and the Quarterly Report
which are attached hereto as Exhibits (d)(1), (d)(2) and (d)(3), respectively,
including all exhibits thereto, is hereby expressly incorporated herein by
reference and the responses to each item of this Statement are qualified in
their entirety by the provisions of the Proxy Statement, the Annual Report and
the Quarterly Report.
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CROSS REFERENCE SHEET
Item in
Schedule 13E-3
Location in Proxy Statement
Item 1(a) Cover Page, "Summary -- the Parties"
Item 1(b) "Introduction," "Summary -- The Date and Place of the
Special Meeting" and "The Special Meeting -- Record
Date and Voting"
Item 1(c)-(d) "Summary -- Price Range of Common Stock and Dividend
History" and "Price Range of Company Common Stock and
Dividend History"
Item 1(e)-(f) "Recent Transactions by the Company in the Common
Stock" and "Information Pertaining to the Parent, the
Purchaser and Related Persons"
Item 2(a)-(d) and (g) "Summary -- The Parties," "The Merger Agreement --
Parties to the Merger Agreement," "Directors and
Executive Officers of the Company" and "Information
Pertaining to the Parent, the Purchaser and Related
Persons"
Item 2(e)-(f) Inapplicable
Item 3(a)-(b) "Information Pertaining to the Parent, The Purchaser
and Related Persons -- Certain Past Contacts,
Transactions or Negotiations with Company" and
"Special Factors -- Background and Negotiations
Regarding the Merger"
Item 4(a) "Summary -- The Merger," "The Merger Agreement" and
"Special Factors -- Background and Negotiations
Regarding the Merger"
Item 4(b) "Information Pertaining to the Parent, the Purchaser
and Related Persons -- General"
Item 5(a)-(e) "Summary -- Plans for the Company After the Merger"
and "Special Factors -- Plans for the Company After
the Merger"
Item 5(f)-(g) "Special Factors -- Plans for the Company After the
Merger"
Item 6(a)-(c) "Special Factors -- Financing of the Merger,"
"Special Factors -- Expenses of the Merger" and
"Information Pertaining to the Parent, the Purchaser
and Related Persons -- General"
Item 6(d) Inapplicable
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Item 7(a)-(d) "Special Factors -- The Parent's Purposes and Reasons
for the Merger," "Special Factors -- Recommendation
of the Board of Directors; the Company's Purpose and
Reasons for and Belief as to the Fairness of the
Merger," "Special Factors -- Plans for the Company
After the Merger" and "Special Factors -- Federal
Income Tax Consequences"
Item 8(a)-(f) "The Special Meeting -- Vote Required to Approve the
Merger," "Summary -- Recommendations for the Merger,"
"Special Factors -- Recommendation of the Board of
Directors; the Company's Purpose and Reasons for and
Belief as to the Fairness of the Merger" and "Special
Factors -- Opinion of Financial Advisor" and "Special
Factors -- The Parent's Purposes and Reasons for the
Merger"
Item 9(a)-(c) "Summary -- Opinion of Financial Advisor," "Special
Factors -- Opinion of Financial Advisor"
Item 10(a) "Principal Stockholders of the Company," "Security
Ownership of the Company's Management" and
"Information Pertaining to the Parent, the Purchaser
and Related Persons -- General; -- Security Ownership
of Management of BOTDA in Company"
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Item 10(b) "Information Pertaining to the Parent, the Purchaser
and Related Persons -- General"
Item 11 "Information Pertaining to the Parent, the Purchaser
and Related Persons -- General"
Item 12(a)-(b) "Introduction," "Summary -- Recommendations for the
Merger; -- Interests of Certain Persons in the
Merger" and "Special Factors -- Recommendation of the
Board of Directors; the Company's Purpose and Reasons
for Belief as to the Fairness of the Merger"Item
13(a)
Item 13(a) "Summary -- No Appraisal or Dissenter's Rights" and
"The Special Meeting -- Absence of Appraisal Rights
and Right to Dissent"
Item 13(b)-(c) Inapplicable
Item 14(a)(1) "Part I, Item 1 - Financial Statements" of The
Quarterly Report
Item 14(a)(2) "Item 8 - Financial Statements and Supplementary
Data" of The Annual Report
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Item 14(a)(3) "Selected Consolidated Financial Data of the Company"
Item 14(a)(4) "Selected Consolidated Financial Data of the Company"
Item 14(b) Inapplicable
Item 15(a)-(b) "The Special Meeting -- Proxy Solicitation"
Item 16 Proxy Statement, Annual Report on Form 10-K and
Quarterly Report on Form 10-Q
Item 17 Included herewith
Item 1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION.
(a) The name and principal executive office of the issuer are:
Big O Tires, Inc., 11755 East Peakview Avenue, Suite A, Englewood, Colorado
80111.
(b) The information set forth under the headings
"Introduction," "Summary -- The Date and Place of the Special Meeting" and "The
Special Meeting -- Record Date and Voting" in Exhibit (d)(1) hereto is
incorporated herein by reference.
(c)-(d) The information set forth under the headings "Summary
- -- Price Range of Company Common Stock and Dividend History" and "Price Range of
Company Common Stock and Dividend History" in Exhibit (d)(1) hereto is
incorporated herein by reference.
(e)-(f) The information set forth under the headings "Recent
Transactions by the Company in the Common Stock" and "Information Pertaining to
the Parent, the Purchaser and Related Persons" in Exhibit (d)(1) hereto is
incorporated herein by reference.
ITEM 2. IDENTITY AND BACKGROUND.
This statement is being filed by (i) Big O Tires, Inc., the
issuer of the Common Stock, (ii) BOTI Holdings, Inc., a Nevada corporation, and
(iii) BOTI Acquisition Corp., a Nevada corporation (collectively, the "Filing
Persons").
(a)-(d) The information set forth under the headings "Summary
- -- The Parties," "The Merger Agreement -- Parties to the Merger Agreement,"
"Directors and Executive Officers of the Company" and "Information Pertaining to
the Parent, the Purchaser and Related Persons" in Exhibit (d)(1) hereto is
incorporated herein by reference.
(e)-(f) None of the Filing Persons and no executive officer
or director of any of the Filing Persons was, during the past 5 years, convicted
in a criminal proceeding (excluding traffic violations or similar misdemeanors)
or been the subject of a judgment, decree or final order enjoining further
violations of, or prohibiting activities subject to, federal or state securities
laws or finding any violation of such laws.
(g) All of the directors and officers of each of the Filing
Persons are citizens of the United States except for Horst K. Mehlfeldt who is a
citizen of the Federal Republic of Germany.
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ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS.
(a)-(b) The information set forth under the headings
"Information Pertaining to the Parent, the Purchaser and Related Persons --
Certain Past Contacts, Transactions or Negotiations with Company" and "Special
Factors -- Background and Negotiations Regarding the Merger" in Exhibit (d)(1)
hereto is incorporated herein by reference.
ITEM 4. TERMS OF THE TRANSACTION.
(a) The information set forth under the headings "Summary --
The Merger," "The Merger Agreement" and "Special Factors -- Background and
Negotiations Regarding the Merger" in Exhibit (d)(1) hereto is incorporated
herein by reference.
(b) The information set forth under the heading "Information
Pertaining to the Parent, the Purchaser and Related Persons -- General" in
Exhibit (d)(1) hereto is incorporated by reference.
ITEM 5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE.
(a)-(e) The information set forth under the headings "Summary -
- - Plans for the Company after the Merger" and "Special Factors -- Plans for the
Company After the Merger" in Exhibit (d)(1) hereto is incorporated herein by
reference.
(f)-(g) The information set forth under the heading "Special
Factors -- Plans for the Company after the Merger" in Exhibit (d)(1) hereto is
incorporated by reference.
ITEM 6. SOURCE AND AMOUNTS OF FUNDS OR OTHER CONSIDERATION.
(a)-(d) The information set forth under the headings "Special
Factors -- Financing of the Merger," "Special Factors -- Expenses of the Merger"
and "Information Pertaining to the Parent, the Purchaser and Related Persons --
General" in Exhibit (d)(1) hereto is incorporated herein by reference.
ITEM 7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS.
(a)-(d) The information set forth under the headings "Special
Factors -- The Parent's Purposes and Reasons for the Merger," "Special Factors -
- - Recommendation of the Board of Directors; the Company's Purpose and Reasons
for and Belief as to the Fairness of the Merger," "Special Factors -- Plans for
the Company After the Merger" and "Special Factors -- Federal Income Tax
Consequences" in Exhibit (d)(1) hereto is incorporated herein by reference.
ITEM 8. FAIRNESS OF THE TRANSACTION.
(a)-(f) The information set forth under the headings "The
Special Meeting -- Vote Required to Approve the Merger," "Summary --
Recommendations for the Merger," "Special Factors -- Recommendation of the Board
of Directors; the Company's Purpose and Reasons for and Belief as to the
Fairness of the Merger," "Special Factors -- Opinion of Financial Advisor" and
"Special Factors -- The Parent's Purposes and Reasons for the Merger" in
Exhibit (d)(1) hereto is incorporated herein by reference.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
(a)-(c) The information set forth under the headings "Summary
- -- Opinion of Financial Advisor," "Special Factors -- Opinion of Financial
Advisor" in Exhibit (d)(1) hereto is incorporated herein by reference.
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ITEM 10. INTEREST IN SECURITIES OF THE ISSUER.
(a) The information set forth under the headings "Principal
Stockholders of the Company," "Security Ownership of the Company's Management"
and "Information Pertaining to the Parent, the Purchaser and Related Persons --
General; -- Security Ownership of Management of BOTDA in Company" in Exhibit
(d)(1) hereto is incorporated herein by reference.
(b) The information set forth under the heading "Information
Pertaining to the Parent, the Purchaser and Related Persons -- General" in
Exhibit (d)(1) is incorporated by this reference.
ITEM 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE
ISSUER'S SECURITIES.
The information set forth under the heading "Information
Pertaining to the Parent, the Purchaser and Related Persons -- General" in
Exhibit (d)(1) is incorporated by this reference.
ITEM 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD
TO THE TRANSACTION.
(a)-(b) The information set forth under the headings
"Introduction," "Summary -- Recommendations for the Merger; -- Interests of
Certain Persons in the Merger" and "Special Factors -- Recommendation of the
Board of Directors; the Company's Purpose and Reasons for Belief as to the
Fairness of the Merger" in Exhibit (d)(1) hereto is incorporated herein by
reference.
ITEM 13. OTHER PROVISIONS OF THE TRANSACTION.
(a) Appraisal rights are not provided. The information set
forth under the headings "Summary -- No Appraisal or Dissenter's Rights" and
"The Special Meeting -- Absence of Appraisal Rights and Right to Dissent" in
Exhibit (d)(1) hereto is incorporated herein by reference.
(b) Not applicable.
(c) Not applicable.
ITEM 14. FINANCIAL INFORMATION.
(a)(l) The information set forth in "Part I, Item 1 -
Financial Statements" of Exhibit (d)(3) hereto is incorporated herein by
reference.
(2) The information set forth in "Item 8 - Financial
Statements and Supplemental Data" of Exhibit (d)(2) hereto is incorporated
herein by reference.
(3) The information set forth under the heading "Selected
Consolidated Financial Data of the Company" in Exhibit (d)(1) hereto is
incorporated herein by reference.
(4) The information set forth under the heading "Selected
Consolidated Financial Data of the Company" in Exhibit (d)(1) hereto is
incorporated herein by reference.
(b) Inapplicable.
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ITEM 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED.
(a)-(b) The information set forth under the heading "The
Special Meeting -- Proxy Solicitation" in Exhibit (d)(1) hereto is incorporated
herein by reference.
ITEM 16. ADDITIONAL INFORMATION.
The information set forth in Exhibits (d)(1), (d)(2), and
(d)(3) is incorporated herein by reference.
ITEM 17. MATERIAL TO BE FILED AS EXHIBITS.
(a)(1) Commitment Letter from First National Bank of Chicago
dated July 24, 1995, and accepted and agreed to on
July 27, 1995, by John B. Adams, Treasurer of BOTI
Acquisition Corp.
(a)(2) Commitment Letter from BancBoston Capital Inc. dated
August 31, 1995, and accepted and agreed to on
September 1, 1995, by Steven P. Cloward as President
of BOTI Holdings, Inc. and accepted and agreed to on
September 8, 1995, by Wesley E. Stephenson as
President of Big O Tire Dealers of America.
(b)(1) Report of PaineWebber Incorporated regarding the
fairness of the Merger Consideration dated
November 14, 1995, entitled Presentation to the Board
of Directors.
(b)(2) Report of PaineWebber Incorporated dated April 14,
1994, entitled Big O Tires, Inc. Rights Agreement
Background Information.
(b)(3) Report of PaineWebber Incorporated dated August 14,
1994, entitled Big O Tires, Inc. Shareholders' Rights
Plan Supplemental Information.
(b)(4) Report of PaineWebber Incorporated dated September
12, 1994, entitled Project Snow Review of Strategic
Alternatives.
(b)(5) Report of PaineWebber Incorporated dated
September 12, 1994, entitled Project Snow
Supplemental Information.
(b)(6) PaineWebber Incorporated Fairness Opinion, attached
as Appendix B to Exhibit (d)(1).
(c)(1) Draft of Stock Purchase Agreement between Big O
Dealers, L.P. and Balboa Investments.
(c)(2) Draft Form of Stock Purchase Agreement prepared by
Big O Dealers, L.P.
(c)(3) Draft of Stock Subscription Agreement between Big O
Dealers, L.P. and BOTI Holdings, Inc.
(c)(4) Draft Form of Stock Subscription Agreement of BOTI
Holdings, Inc. for Members of Management.
8
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(d)(1) Letter to Stockholders, Notice of Special Meeting of
Stockholders, Proxy Statement and proxy card
(including exhibits).
(d)(2) Annual Report on Form 10-K for the fiscal year ended
December 31, 1994 of Big O Tires, Inc.
(d)(3) Quarterly Report on Form 10-Q for the quarter ended
September 30, 1995 of Big O Tires, Inc.
(e) Not applicable.
(f) Not applicable.
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
BIG O TIRES, INC.
November 17, 1995 /s/ John E. Siipola
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(Date) John E. Siipola
Member, Office of the Chief
Executive
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
BOTI HOLDINGS, INC.
November 17, 1995 /s/ Steven P. Cloward
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(Date) Steven P. Cloward
President
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
BOTI ACQUISITION CORP.
November 17, 1995 /s/ Steven P. Cloward
- ------------------------- -----------------------------
(Date) Steven P. Cloward
President
9
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The First National Bank of Chicago
Mail Suite
One First National Plaza
Chicago, Illinois 60670
Telephone: (312) 732-4000
July 24, 1995
Mr. Steven P. Cloward
c/o Big O Tires, Inc.
11755 East Peakview Avenue
Englewood, Colorado 80111
Gentlemen/Ladies:
The First National Bank of Chicago ("First Chicago") understands that you,
certain other members of management of Big O Tires, Inc. (the "Company") and the
Company's Employee Stock Ownership Plan (collectively, "Borrower's
Shareholders") have created an acquisition corporation named BOTI Acquisition
Corp. ("Borrower"), and Borrower will seek to enter a merger agreement ("Merger
Agreement") with Company whereby Borrower will merge (the "Merger") into Company
and Company will be the surviving corporation (the "Acquisition"). You have
requested senior facilities (the "Facilities") in the aggregate principal amount
of $40 million (the "Aggregate Commitment"). First Chicago is pleased to
confirm its commitment to Borrower for the entire amount of the Facilities on
the terms and conditions set forth in the term sheet attached hereto ("Term
Sheet") and subject to the conditions set forth in this Commitment Letter.
First Chicago intends, and reserves the right, to syndicate the Facilities to a
group of lenders (collectively, including First Chicago, the "Lenders") selected
by it.
First Chicago understands that Borrower will be capitalized with: (i)
the Facilities; (ii) an equity contribution, effected in a manner acceptable to
First Chicago, of substantially all of the shares of common stock of Company
which Borrower's Shareholders own, and $10 million cash (collectively,
"Equity"); (iii) at least $10 million of new privately placed senior debt
("Privately Placed Senior Debt"); (iv) $10 million of new senior subordinated
debt described below ("New Subordinated Debt"); and, after the Acquisition, (v)
Company's approximately $3.2 million of existing subordinated debt ("Existing
Subordinated Debt") and Company's approximately $1.8 million of other existing
debt.
The terms and conditions of the Merger Agreement (including without
limitation the total consideration to be paid and the form thereof) shall be
acceptable to the Lenders. The definitive structure of the Acquisition has not
been determined and must be satisfactory to the Lenders. The terms and
conditions of the Privately Placed Senior Debt, including without limitation,
those pertaining to default, amortization, interest rate, covenants and
defaults, and the entity or entities which issue the debt, shall be in form and
substance acceptable to the Lenders. The terms and conditions of the New and
Existing Subordinated Debt (collectively, "Subordinated Debt"), including
without limitation, those pertaining to subordination, default, standstill,
sinking fund, amortization, interest rate, covenants and defaults, the entity or
entities which issue or are otherwise liable for the Subordinated Debt, shall be
in form and substance acceptable to the Lenders. Accordingly, certain terms of
the Existing Subordinated Debt shall be amended. Without limiting the
foregoing, all covenants and defaults contained in the Subordinated Debt
indenture shall be less restrictive than those contained in the Loan Documents;
the Subordinated Debt shall be unsecured; there shall be no mandatory
prepayments or redemptions of any type; none of the New Subordinated Debt shall
mature until at least one year after all of the Senior Facilities have matured
(but the Existing Subordinated Debt held by Kelly-Springfield may mature
according to the amortization schedule described in the Borrower's business
plan, dated June 26, 1995); and there shall be no substantial limitation on the
sale of assets.
First Chicago has reviewed certain historical and pro forma financial
statements of Company, received in February, 1995, and entitled "Confidential
Memorandum, Big O Tires, Inc. $50,000,000 Acquisition Financing", delivered by
KPMG Peat Marwick LLP, and certain financial information First Chicago has about
Company from First Chicago's existing credit relationship with the Company.
First Chicago's commitment is subject to its continuing satisfaction therewith
and its satisfaction of such other due diligence investigation as may be
necessary for First Chicago's credit evaluation. In the event that First
Chicago's continuing review of the Borrower and its subsidiaries discloses
information relating to conditions or events not previously disclosed to First
Chicago or relating to new information or additional developments concerning
conditions or events previously disclosed which may have a material adverse
effect on the condition, assets, properties, business or prospects of the
Borrower and its subsidiaries, or any such conditions set forth in such
definitive documentation are not satisfied, First Chicago may, in its sole
discretion, suggest alternative financing amounts or structures that ensure
adequate protection for the Lenders or decline to participate in the proposed
financing.
Borrower agrees to (i) reimburse First Chicago for all out-of-pocket
expenses (including the fees of outside counsel and time charges for inside
counsel) incurred in connection with this Commitment Letter, the transactions
contemplated thereby and First Chicago's on-going due diligence therewith,
including without limitation travel expenses and costs incurred in connection
with the preparation, negotiation, execution, administration, syndication, and
enforcement of any document relating to this transaction and its role hereunder,
(ii) indemnify and hold harmless the Lenders and their respective officers,
employees, agents and directors (collectively, including the Lenders, the
"Indemnified Persons") against any and all losses, claims, damages, or
liabilities of every kind whatsoever to which the Indemnified Persons may become
subject in connection in any way with the transaction which is the subject of
this Commitment Letter, including without limitation expenses incurred in
connection with investigating or defending against any liability or action
whether or not a party thereto, except to the extent any of the foregoing is
found in a final judgment by a court of competent jurisdiction to have arisen
solely from such Lender's gross negligence or wilful misconduct; and (iii)
assert no claim against First Chicago or the Lenders or any other Indemnified
Persons seeking consequential damages on any theory of liability in connection
in any way with the transaction which is the subject of this Commitment Letter
or any multiple roles which First Chicago assumes. The obligations described in
this paragraph are independent of all other obligations of Borrower hereunder
and under the Loan Documents, shall survive the expiration, revocation or
termination of this Commitment Letter, and shall be payable whether or not the
financing transactions contemplated by this Commitment Letter shall close.
First Chicago's obligations under this Commitment Letter are enforceable solely
by the party signing this Commitment Letter and may not be relied upon by any
other person. For purposes of enforcing this indemnity, Borrower irrevocably
submits to the non-exclusive jurisdiction of any court in which a claim arising
out of or relating to the services provided under this Commitment Letter is
properly brought against First Chicago or the Lenders and irrevocably waive any
objection as to venue or inconvenient forum. IF THIS COMMITMENT LETTER, THE
TERM SHEET, THE AGENT FEE LETTER, OR ANY ACT, OMISSION OR EVENT DESCRIBED IN
THIS PARAGRAPH BECOMES THE SUBJECT OF A DISPUTE, THE BORROWER AND FIRST CHICAGO
EACH HEREBY WAIVE TRIAL BY JURY. Borrower agrees not to settle any claim,
litigation or proceeding relating to this transaction (whether or not First
Chicago is a party thereto) unless such settlement releases all Indemnified
Persons from any and all liability in respect of such transaction.
- 2 -
First Chicago's Commitment hereunder is separate and distinct from First
Chicago's undertaking to act as Borrower's placement agent for the Privately
Placed Senior Debt. The Borrower has directed First Chicago that those
personnel working on the Commitment hereunder and those personnel working on the
private placement should share the Borrower's confidential information with each
other and generally work together on this transaction. Borrower acknowledges
and consents to First Chicago's acting in these multiple roles. Borrower
understands that the personnel working on the private placement will not be
representing First Chicago as agent bank under this Commitment and cannot bind
First Chicago in that capacity.
This commitment is subject to (i) the preparation, execution, and delivery
of a mutually acceptable credit agreement ("Credit Agreement") and other loan
documents (collectively, the "Loan Documents") incorporating, without
limitation, substantially the terms and the conditions outlined herein and in
the Term Sheet; and (ii) First Chicago's determination that (a) there is an
absence of a material adverse change in the business, condition (financial or
otherwise), operations, performance, properties, or prospects of the Borrower or
any of its material subsidiaries from December 31, 1994; and (b) there is an
absence of any material adverse change prior to closing in primary and secondary
loan syndication markets or capital markets generally.
First Chicago will manage all aspects of the syndication, including,
without limitation, decisions as to the selection of institutions to be
approached and when they will be approached, when their commitments will be
accepted, which institutions will participate, the allocations of the
commitments among the Lenders and the amount and distribution of the fees
discussed herein among the Lenders. Upon First Chicago's acceptance of any such
commitment from a Lender, First Chicago shall be relieved of its commitment to
fund such amount. To assist First Chicago in its syndication efforts, Borrower
shall (a) provide and to cause its advisors to provide First Chicago upon
request with all information deemed reasonably necessary by it to complete
successfully the syndication, including, without limitation, all information and
projections prepared by Borrower or on Borrower's behalf relating to the
transactions contemplated hereby; (b) cause the management of the Borrower to
actively participate in, both the preparation of an information package
regarding the operations and prospects of the Borrower and the presentation of
the information to prospective Lenders; (c) not to make any statement publicly
about the Commitment or the Facilities which might negatively affect First
Chicago's and Lenders' ability to syndicate the Facilities; and (d) assist, if
First Chicago so requests, restructuring in a manner mutually acceptable to
First Chicago and the Borrower, of the terms and conditions of the Facilities
if, in First Chicago's judgment, any portion of the syndication shall have been
unsuccessful.
After the Borrower has publicly announced the transaction, the Borrower
authorizes First Chicago to answer inquiries from the media with respect to the
Facilities and to issue press releases with respect to the Facilities. The
foregoing authorization shall remain in effect unless the Borrower notifies
First Chicago in writing that such authorization is revoked.
Please indicate your acceptance of this commitment in the space indicated
below and return a copy of this Commitment Letter so executed to First Chicago.
This commitment will expire at 5 p.m. Wednesday, August 2, 1995, unless on or
prior to such time First Chicago shall have received a copy of this Letter
executed by the Borrower. Notwithstanding timely acceptance of the commitment
pursuant to the preceding sentence, the commitment will automatically terminate
unless definitive Loan Documents are executed on or before November 30, 1995.
By its acceptance hereof, the Borrower agrees to pay First Chicago the fees
described in the fee letter ("Fee Letter") of even date herewith.
By its acceptance hereof, Borrower hereby authorizes First Chicago, at
First Chicago's sole expense but without any prior approval by Borrower, to
publish such tombstones and give such other publicity to the Facilities as First
- 3 -
Chicago may from time to time determine in its sole discretion.
By accepting delivery of this Commitment Letter, the Fee Letter and the
Term Sheet, Borrower hereby agrees that, prior to executing this Commitment
Letter, Borrower will not disclose either expressly or impliedly, without First
Chicago's consent, to any person any of the terms of this Commitment Letter, the
Fee Letter or Term Sheet, or the fact that this Commitment Letter, the Fee
Letter or Term Sheet or the financing proposal represented thereby exists except
that Borrower may disclose any of the foregoing to any employee, financial
advisor (but not to any commercial lender) or attorney of Borrower to whom, in
each case, it is necessary to disclose such information so long as any such
employee, advisor or attorney is directed to observe this confidentiality
obligation. Upon Borrower's execution of this Commitment Letter, Borrower may
make public disclosure of the existence and the amount of the commitment; and
Borrower may file a copy of the Commitment Letter, or make such other
disclosures if such disclosure is, in the opinion of Borrower's counsel,
required by law. If Borrower does not accept this commitment, Borrower is to
immediately return this Commitment Letter, the Fee Letter and the Term Sheet
(and all copies of the foregoing) to First Chicago.
This Commitment Letter and Term Sheet supersede any and all prior versions
thereof. This Commitment Letter shall be governed by the internal laws of the
State of Illinois, and may only be amended by a writing signed by both parties.
THE FIRST NATIONAL BANK OF CHICAGO
By: /s/ Nathan L. Bloch
Title: Vice President
Accepted and agreed:
BOTI ACQUISITION CORP. ("Borrower")
By: /s/ John B. Adams
Title: Treasurer
Date: July 27, 1995
- 4 -
TERM SHEET
ACQUISITION OF BIG O TIRES, INC.
July 24, 1995
This Term Sheet is delivered with a Commitment Letter of even date
herewith. Capitalized terms herein shall have the meaning set forth in the
Commitment Letter.
THE FACILITIES
Borrower: BOTI Acquisition Corp., (an Acquisition Corporation), and after
the Merger, the Company.
Amount: $40 million (the "Aggregate Commitment") comprised of loans under
the Facilities described below.
Agent: The First National Bank of Chicago (maximum commitment is $40
million).
Lenders: A group of lenders to be determined (collectively, together with
the Agent in its capacity as lender, the "Lenders").
Documentation: The Facilities will be evidenced by a Credit Agreement, notes,
security agreements and other Loan Documents mutually
satisfactory to the Borrower and the Lenders.
Syndication
Management: The Agent will manage all aspects of the syndication including,
without limitation, the timing of offers to potential Lenders,
the amounts offered to potential Lenders, and the acceptance of
commitments, and the compensation provided, all as set forth in
the Commitment Letter.
Facility A: Term Loan
Amount: $20 million.
Purpose: To provide funds for the purchase of Company, pursuant to the
Acquisition, for payment of expenses incurred in connection with
the Acquisition, and for Borrower to provide a loan of up to $5.5
million to the Company's ESOP (the "ESOP Loan") in connection
with the Acquisition.
Maturity: Sixth anniversary of closing.
Amortization: Quarterly installments of principal amounts per annum as follows:
Aggregate Amount
Year Each Year
1 $2,000,000
2 $3,000,000
3 $3,000,000
4 $4,000,000
5 $4,000,000
6 $4,000,000
Facility B: Revolving Credit
- 5 -
Amount: $20 million (the "Facility 'B' Commitment").
Purpose: To provide funds for the working capital needs of the Company and
its Subsidiaries with a sublimit (to be determined) for letters
of credit.
Maturity: Sixth anniversary of closing.
FEES
The Borrower will pay the following fees:
Commitment
Fee: A commitment fee of 1/2% per annum on the average daily
unborrowed portion of Facility "B" Commitment payable quarterly
in arrears to the Lenders (including the Agent) ratably from the
Closing Date until termination of Facility "B" Commitment.
Agent and
Other Fees: Such fees payable to the Agent as are specified in the fee letter
between the Agent and the Borrower.
L/C Fees: Customary.
MISCELLANEOUS FACILITY TERMS
Borrowing
Base: The aggregate outstanding amount of loans under Facility B shall
not at any time exceed the Borrowing Base. The borrowing base
will be substantially the same as the terms of the existing
Revolving Credit Agreement dated as of January 23, 1995 among Big
O Tires, Inc. and The First National Bank of Chicago.
Allocation;
Ratable
Share: The Agent shall, in its sole discretion, allocate the commitments
received from the various lenders.
INTEREST RATES
Facility A
At the Company's option:
ABR plus 1.75% per annum
Eurodollar Rate plus 3.0% per annum
Facility B
At the Company's option:
ABR plus 1.75% per annum
Eurodollar Rate plus 3.0% per annum
"ABR" means the Alternate Base Rate and is the larger of
CBR, or the federal funds rate plus 1/2% per annum.
"CBR" means the corporate base rate of interest announced by
- 6 -
the Agent from time to time, changing when and as said
corporate base rate changes.
"Eurodollar Rate" means the rate offered by the Agent in the
London interbank market for deposits in the amount of, and
for a maturity corresponding to, the Agent's portion of the
loan, as adjusted for maximum statutory reserves.
Eurodollar Rate interest periods shall be one, two, three or
six months. Interest shall be payable in arrears on the
last day of each interest period and, in the case of an
interest period longer than three months, quarterly, and
upon any prepayment. Interest and fees will be computed for
actual days elapsed on a 360-day year basis.
The Credit Agreement will include customary provisions
relating to yield protection, availability and capital
adequacy. After default, the interest rate will be equal to
the ABR plus 4% per annum.
The Eurodollar Rate will not be made available, at the
Agent's sole option, for the first 90 days following the
initial funding of the loans.
ABR advances will be in a minimum amount of $100,000, and in
multiples of $50,000 in excess thereof. Eurodollar advances
will be in a minimum amount of $1,000,000, and in multiples
of $100,000 in excess thereof.
COLLATERAL, GUARANTIES OR OTHER CREDIT SUPPORT
Each of the Facilities will be secured by a first perfected security
interest in all of the Company's assets and, through secured guaranties, in all
of the subsidiaries' assets, except that the Facilities will not be secured by
any of the following: (i) liens in the Las Vegas, Nevada and Boise, Idaho
distribution centers to be granted to the holders of the Privately Placed Senior
Debt; (ii) liens in the New Albany, Indiana distribution center granted to
National City Bank; (iii) liens granted by Big O Development, Inc. in certain
retail stores; and (iv) liens granted by Big O Retail Enterprises, Inc. in
certain equipment to Colonial Pacific Leasing. The collateral will secure
interest rate swaps or hedge obligations owing to any Lender.
PREPAYMENTS
Mandatory
Prepayments:
Sale of Assets: Upon the sale, transfer or other disposition of any assets
(other than the sale of inventory in the ordinary course of
business), to the extent permitted by the Lenders, the
Company shall make a mandatory prepayment in an amount equal
to 100% of the net proceeds realized from any such sale,
transfer or other disposition of Facility A until paid in
full, then to reduce commitments under Facility B to $0.
Mandatory
Prepayments:
- 7 -
Excess Cash Flow: Upon delivery of its audited financial statements in each
year commencing with the fiscal year ending December 31,
1995, the Company shall make a mandatory prepayment in an
amount equal to 100% of the Excess Cash Flow, if positive,
for the most recently ended fiscal year, of Facility A until
paid in full, then to reduce commitments under Facility B to
$0. Excess Cash Flow shall be defined in the Credit
Agreement.
Mandatory
Prepayment:
Sale of Equity: Upon the sale of any common stock, preferred stock, warrant
or other equity, the Company shall make a mandatory
prepayment of 100% of the proceeds thereof of Facility A
until paid in full, then to reduce commitments under
Facility B to $0.
Voluntary
Prepayments: Facility A may be prepaid in whole or in part without
premium on 1 day's notice, provided that such payments will
be in amounts of at least $500,000, and the Facility B
Commitment may be permanently reduced without premium on 1
day's notice, provided such payments will be in an amount of
at least $500,000.
Allocation
of Prepayments: All mandatory prepayments shall be applied to the principal
installments of Facility A in the inverse order of maturity.
All voluntary prepayments shall be applied pro rata over the
remainder of the Facility.
CONDITIONS OF LENDING
The Loan Documents shall be in form and substance acceptable to the
Lenders. The Credit Agreement shall include, without limitation, conditions
precedent, representations and warranties, covenants, events of default,
indemnification and other provisions customary for such financings.
CONDITIONS PRECEDENT
Usual conditions to each loan (including absence of default or unmatured
default, lack of material adverse change from the Company's financial condition
and operations as reflected in the Borrower's consolidated pro forma financial
statements as of March 31, 1995 previously delivered to the Agent). Additional
conditions precedent to initial loan will include without limitation those set
forth below.
Initial
Funding: Initial funding shall occur no later than November 30, 1995.
Approval: Evidence satisfactory to the Agent and the Required Lenders (to
be defined in the Credit Agreement) that the Company's and
Acquisition Sub's respective directors and shareholders shall
have approved the Acquisition; and all regulatory and legal
approvals for the Acquisition shall have been obtained.
- 8 -
Litigation: Absence of injunction or temporary restraining order which, in
the judgment of the Agent or the Required Lenders would prohibit
the making of the loans or the consummation of the Acquisition;
and absence of litigation which would reasonably be expected to
result in a material adverse effect on the Borrower and its
subsidiaries.
Due Diligence: Satisfactory results of due diligence investigation of the
Company and its Subsidiaries (including without limitation
contingent liabilities (e.g., environmental, retiree medical
benefits, ERISA, etc.) and contractual obligations. All
financial, accounting, and tax aspects of the acquisition must be
acceptable.
Total
Consideration: The amounts and forms of the consideration paid in the
Acquisition shall be acceptable to the Required Lenders.
Merger
Agreement: The Merger Agreement shall contain terms and conditions which are
acceptable to the Required Lenders (including without limitation
the consideration to be paid in the Acquisition), the
representations and warranties in the Merger Agreement shall be
accurate as of the date of the Acquisition closing and the
conditions therein shall have been satisfied and Required Lenders
must have received an opinion of counsel satisfactory to Required
Lenders as to the enforceability of the Merger Agreement and its
compliance with all applicable law.
Equity: The Borrower shall receive the Equity (described in the
Commitment Letter).
ESOP Loan: The terms of the ESOP Loan from Borrower to the ESOP shall be
upon terms and conditions acceptable to the Required Lenders.
Subordinated
Debt: The Borrower shall have received proceeds of New Subordinated
Debt in an amount equal to at least $10 million, and the Existing
Subordinated Debt shall be amended, in each case, upon the terms
set forth in the Commitment Letter.
Privately Placed
Senior Debt: The Borrower shall have received proceeds of the Privately Placed
Senior Debt in an amount equal to at least $10 million upon the
terms set forth in the Commitment Letter.
Financial
Statements: The Agent and the Required Lenders shall have received (i) pro
forma opening financial statements giving effect to the
Acquisition which must not be materially less favorable, in the
Agents' and Required Lenders' reasonable judgment, than the
projections previously provided to them and which must
demonstrate, in their reasonable judgment, together with all
other information then available to the Agent and Required
Lenders, that the Borrower and its subsidiaries can repay their
debts and satisfy their respective other obligations as and when
- 9 -
due, and can comply with the financial covenants acceptable to
the Agent and Required Lenders, and (ii) such information as the
Agent and the Required Lenders may reasonably request to confirm
the tax, legal and business assumptions made in such pro forma
financial statements.
Fairness
Opinion: Receipt of copy of any fairness opinion from the Company's
investment banker addressed to the Company's board of directors,
relating to the terms of the Acquisition.
Valuation: The Agent and the Required Lenders shall have received Opinions
of value, solvency and other appropriate factual information and
advice in form and substance satisfactory to them and from a
source or sources acceptable to them supporting the conclusions
that after giving effect to the Acquisition, the Borrower is
solvent and will be solvent subsequent to incurring the
indebtedness in connection with the Acquisition, will be able to
pay its debts and liabilities as they become due and will not be
left with unreasonably small capital with which to engage in its
businesses.
Environment: If requested by the Required Lenders, an environmental review
report, satisfactory in form and substance to the Required
Lenders, from an environmental review firm acceptable to the
Required Lenders, as to any environmental hazards or liabilities
and with the Borrower's plans with respect thereto.
Existing
Facilities: Prepayment of all obligations under existing First Chicago loan
facilities (other than those under the Facilities).
Legal: All legal (including tax implications) and regulatory matters
shall be satisfactory to the Required Lenders.
Collateral: Liens creating a first priority security interest in the
Collateral shall have been perfected.
Regulations: Compliance with all applicable requirements of Regulations U, G,
T and X of the Board of Governors of the Federal Reserve System.
No Default;
No MAC: No default or unmatured default shall exist on the funding date
and no material adverse change in the business, condition
(financial or otherwise), operations, performance, properties or
prospects of the Borrower or any obligor or guarantor since
December 31, 1994, shall have occurred.
Interest
Rate
Protection: The Agent may require the Borrower to enter into interest rate
swap and hedge agreements or other agreements which effectively
limit the amount of interest that the Borrower must pay on
notional amounts of the lender financing to be agreed upon.
Customary
Documents: Receipt of other customary closing documentation, including,
without limitation, legal opinions of the Borrower's counsel,
acceptable to the Agent.
- 10 -
COVENANTS
Covenants: The Credit Agreement will contain customary covenants, including,
without limitation, restrictions (subject to exceptions, as
appropriate, to be negotiated) on the following:
-liens and encumbrances
-dividends and retirement of stock
-guarantees
-sale and leaseback transactions
-sale of assets
-consolidations and mergers
-investments and acquisitions
-capital expenditures
-loans and advances
-indebtedness and additional indebtedness
-compliance with pension, environmental and
other laws
-operating leases
-transactions with affiliates
-changes in line of business
-hedging of interest rates
(e.g., with swaps, caps)
-prepayment of other debt
-permit inspection of records and assets
-other
Financial
Covenants: The Credit Agreement will contain financial covenants containing
limitations to be negotiated, including, without limitation,
covenants pertaining to:
-minimum net worth
-interest coverage
-leverage ratio
-fixed charge coverage
-cash flow coverage
REPRESENTATIONS
AND WARRANTIES
Usual representations and warranties in connection with each loan shall be
included in the Credit Agreement, including but not limited to absence of
material adverse change, absence of material litigation, absence of default or
unmatured default, representations regarding environmental issues, priority of
the Lender's liens, compliance with all material requirements of law and
contracts, and compliance with Regulations G, U, T and X.
DEFAULTS
Customary events of default, including, without limitation, cross default
to occurrence of a default (whether or not resulting in acceleration) under any
- 11 -
other agreement governing indebtedness of the Company or any of its subsidiaries
and change of control.
ASSIGNMENTS AND PARTICIPATIONS
Each Lender may, in its sole discretion, sell participations and may, in a
manner acceptable to Agent, sell assignments in the loans and in its commitment
and disclose information to prospective participants and assignees, and share,
at its option, any fees with such participants and assignees. The assignor
shall pay an assignment fee (each an "Assignment Fee") of $5,000 to First
Chicago upon any assignment by a Lender of its rights and obligations under the
Credit Facilities (including, but not limited to, an assignment by a Lender to
another Lender).
OTHER
This commitment is governed by the law of the State of Illinois. This term
sheet is intended as an outline only and does not purport to summarize all the
conditions, covenants, representations, warranties and other provisions which
would be contained in definitive legal documentation for the financing
contemplated hereby. The commitment of the Agent and the other Lenders is
subject to negotiation and execution of definitive Loan Documents in form and
substance satisfactory to the Agent and the other Lenders and their respective
counsel. In addition, the organizational structure of the Company after the
Acquisition, the form and structure of the Acquisition and the financial, legal,
accounting, tax and all other aspects of the Acquisition shall be satisfactory
to the Agent and the other Lenders and their respective counsel.
- 12 -
BANCBOSTON CAPITAL
100 Federal Street
Boston, Massachusetts 02110
Mail:
P.O. Box 2016
Boston, MA 02106-2016
a Bank of Boston company
August 31, 1995
Steven P. Cloward Wes Stephenson
President & Chief Executive Officer Big O Tire Dealers of
America
C/O Big O Tires C/O Rick Waxman
11755 East Peakview Avenue Wendell, Rosen, Black &
Dean
Englewood, CO 80111 P.O. Box 2047
11 Broadway
24th Floor
Oakland, CA 94607
Dear Gentlemen:
We are pleased to advise you that BancBoston Capital Inc. ("BBC")
or an affiliate is
able to provide up to $10,000,000 of mezzanine financing to BOTI
Holdings, Inc. an
acquisition corporation ("Newco") formed by The Big O Tire
Dealers of America
("BOTDA"), The Big O ESOP ("the ESOP"), and members of senior
management ("the
Management Group") of Big O Tires, Inc. ("Big O" or "the
Company") to acquire all of
the capital stock ("the Acquisition") of Big O. The principal
terms of our
commitment are set forth in an attachment to this letter. This
commitment is subject
to the following conditions:
(a) Completion of the Acquisition on terms satisfactory to
BBC for a purchase
price not exceeding $16.50 per share with transaction costs not
exceeding $5MM.
(b) Negotiation and execution of a definitive Securities
Purchase and Warrant
Agreement satisfactory to BBC, Newco, and the Management Group
substantially on the
terms outlined in the attachment to this letter.
(c) Obtaining senior debt financing (including a loan to
the ESOP) of an
amount and on terms and conditions satisfactory to BBC;
(d) Kelly-Springfield agreeing to continue to provide
approximately $3.2
million of junior subordinated debt financing on terms and
conditions satisfactory to
BBC;
(e) BOTDA obtaining $10 million of financing on terms and
conditions
satisfactory to BBC;
<PAGE>
(f) A total investment by the Management Group, the ESOP
and BOTDA of not less
than $19.6 million of equity in Newco, on terms satisfactory to
BBC;
(g) Negotiation of an inter-creditor agreements between
BBC and First Chicago,
and BBC and Kelly-Springfield, and BBC and any other provider of
senior bank debt, on
mutually satisfactory terms;
(h) The execution of a stockholders agreement between BBC,
the Management
Group, the ESOP and the BOTDA on mutually satisfactory terms;
(i) The execution of employment and non-compete agreements
between Newco and
the Management Group on mutually satisfactory terms;
(j) Absence of (a) any environmental problems involving
Big O's business or
assets, the determination of which may require an environmental
consultant
satisfactory to us, and (b) any material litigation relating to
the proposed
financing of the Acquisition;
(k) Compliance by Newco with all legal and regulatory
requirements applicable
to the Acquisition and the proposed financing;
(l) An actuarial estimate of the ESOP's repurchase
liability over the next
five years, disclosing a level of liability acceptable to BBC.
(m) Key man life insurance on any management personnel BBC
deems appropriate
in amounts to be mutually agreed upon prior to closing.
This commitment constitutes the Commitment referenced in BBC's
letter to you dated
July 7, 1995 ("the Proposal Letter") and, upon your acceptance as
provided below,
will supersede the Proposal Letter in its entirety. As provided
in the Proposal
Letter, you will be responsible for all of BBC's reasonable
out-of-pocket expenses
(including the fees and disbursements of our counsel, accountants
and consultants)
whether or not the transaction contemplated herein closes. In
addition, as
previously agreed in the Proposal Letter, in the event that you
proceed to complete
the Acquisition within one year after the date of this letter
without utilizing the
financing made available by BBC hereunder, in addition to all out
of pocket expenses
referred to above, you agree to pay BBC a breakup fee of $500,000
on the closing date
of the acquisition as liquidated damages to compensate BBC for
its lost investment
opportunities, (which you hereby agree are not and will not be
susceptible to
reasonable proof of amount and, therefore, will not be
compensated by ordinary
damages.)
<PAGE>
You further agree to keep this letter and its contents
confidential and without the
prior written consent of BBC, you agree not to disclose to any
person any of the
terms, conditions or other contents of this letter or subsequent
negotiations between
the parties hereto.
This interest letter will expire at 5:00 PM (EDT) on September 1,
1995 unless we have
received a signed copy of this letter signifying your agreement
to these terms and
conditions. Additionally, you will pay us a non-refundable cash
deposit of $50,000,
payable upon your acceptance of this letter, which deposit will
be credited against
your obligations to reimburse our out-of-pocket expenses. Upon
your signed
acceptance hereof, this letter will supersede the Proposal Letter
and all previous
correspondence to the extent they are inconsistent herewith.
We are delighted to have the opportunity to work with you and
look forward to the
successful completion of the transaction.
Sincerely,
/s/ Charles R. Grant
Charles R. Grant
Vice President
Accepted and Agreed to:
By: /s/ Steven P. Cloward By: /s/ Wesley E. Stephenson
Title: President Title: President
On behalf of Newco On behalf of BOTDA
Date: 9/1/9 Date: 9/8/95
<PAGE>
TERM SHEET-BIG O TIRES
ATTACHMENT
1. Senior Subordinated Notes
Obligor: Newco, a company which will acquire the shares of and
merge with Big O
Tires, Inc.
Face Amount: $10,000,000
Purchase Price: Par
Maturity: Eight years from closing
Amortization: Years 1-5 none. Thereafter and commencing at the
end of the first
quarter of year 6, twelve consecutive quarterly payments in
arrears of $833,333,
subject to there being a payment default under the revolver or
term loan provided by
First National Bank of Chicago.
Security: Unsecured
Subordination: To the senior bank debt of Newco on mutually
satisfactory terms
Closing Fee: $250,000 payable in cash at closing
Interest Rate: 12.5% per annum payable quarterly in arrears in
cash
Prepayment: Prepayment of the principal prior to the fifth
anniversary will require
payment of a make whole prepayment penalty.
Warrant: BBC will receive a detached warrants representing a 12%
equitable interest
in Newco on a fully diluted basis. Terms of this warrant are
outlined below in (2).
General
Covenants: In addition to the normal representations, warranties
and covenants, BBC
would expect that the Securities Purchase Agreement would include
the following:
- Similar covenants to the senior lender, including but not
limited to tests for
minimum net worth, interest coverage and debt service, debt to
worth, minimum
operating income and maximum limitations on additional
indebtedness and capital
expenditures.
- Limitation on the kinds of business in which the company
engages, as well as
restrictions on mergers and acquisitions.
- Limitation on distributions and dividends.
- No amendment subsequent to closing of clauses in the
senior debt agreement
relating to terms and conditions of subordinated debt principal,
amortization,
interest and fees.
- BBC's consent required on change of ownership and/or
control of Newco and on
changes to Newco's charter documents.
- Restrictions on additional senior indebtedness; if
management believes at the
time of BBC's put that it needs to add senior indebtedness to
finance such put, BBC
agrees to discuss such request with management at that time.
- Monthly financial reporting, including income statement,
balance sheet and
cash flows, covenant compliance reports and certified annual
audit, and any other
information we may reasonably request.
- Subordination of the Kelly-Springfield subordinated note
on terms satisfactory
to BBC.
- Right to appoint one Board member.
Transfer Rights: Freely transferable subject to applicable
securities laws.
2. Warrant
Description: Detached warrants representing a 12% equitable
interest in Newco on a
fully diluted basis.
Price: Nominal.
Exercise Period: At any time.
Put Rights: From time to time after the fifth anniversary of
closing, BBC may require
Newco to repurchase all or part of the Warrant or Warrant Stock
for cash equal to the
percentage of Newco's total common equity represented by the
Warrant or Warrant Stock
being put multiplied by the greater of (a) the fair market value
of Newco's total
common equity as determined by negotiation or by appraisal, if
necessary and (b) 6
times trailing 12 month EBITDA less borrowed money bank debt
outstanding plus cash on
hand ("Put Value"). If Newco is unable to pay BBC's put in cash,
the Put Value shall
be added to the principal amount of BBC's Note earning cash
interest at BBC's cost of
funds plus 15% per annum and maturing concurrently with the Note.
If at any time within nine months after any Put Closing Date, the
company or any of
its subsidiaries becomes party to a capital transaction or enters
into any letter of
intent contemplating any capital transaction, the company shall
simultaneous with
such capital transaction make an additional payment to BBC equal
to the excess, if
any, of the value it would have received for its Warrant or
Warrant Stock had it been
a party to such capital transaction over the value it actually
received on the Put
Closing Date.
Call Rights: At any time after the seventh anniversary of
closing, Newco may
repurchase all of the Warrant or Warrant Stock for cash equal to
the percentage of
Newco's total common equity represented by the Warrant or Warrant
Stock being called
multiplied by the greater of (a) the fair market value of Newco's
total common equity
as determined by negotiation or by appraisal, if necessary and
(b) 6 times trailing
12 month EBITDA less borrowed money bank debt outstanding plus
cash on hand ("Call
Value").
If at any time within eighteen months after any Call Closing
Date, the company or any
of its subsidiaries becomes arty to a capital transaction or
enters into any letter
of intent contemplating any capital transaction, the company
shall simultaneous with
such capital transaction make an additional payment to BBC equal
to the excess, if
any, of the value it would have received for its Warrant or
Warrant Stock had it been
a party to such capital transaction over the value it actually
received on the Call
Closing Date.
Shareholders
Rights: (a) Anti-dilution provisions and pre-emptive rights.
(b) Rights to piggyback on a pro rata basis on any
public or private sale
of the Newco's equity securities.
<PAGE>
(c) Demand registration rights, provided BBC must be
joined in its demand
by any one or more stockholders if the company is not public at
the time of its
demand.
(d) BBC will have the right to appoint a Director to
the Board, provided
that if the senior subordinated notes have been paid in full and
the total of BBC's
common stock and warrant entitlement is less than 5% then BBC
will have no right to
appoint a director but will retain a right to have a
representative attend board
meetings.
(e) Freely transferable (except to direct competitors
of Newco) subject
to applicable securities laws.
(f) Rights to receive copies of all information
provided to Newco's
lenders.
This summary of terms does not purport to include all the
provisions (including usual
representations and warranties, conditions, covenants and events
of default) which
would be contained in documents for this transaction, all of
which must be
satisfactory in form and substance to us and our counsel, and to
Newco and its
counsel prior to the making of the proposed investment.
<PAGE>
Big O Tires, Inc.
PRESENTATION TO THE BOARD OF DIRECTORS
November 14, 1995
PaineWebber Incorporated
<PAGE>
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Big O Tires, Inc.
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TABLE OF CONTENTS
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I EXECUTIVE SUMMARY
II REVIEW OF DUE DILIGENCE
III BIG O TIRES, INC.
EXHIBIT I -- COMPANY OVERVIEW
EXHIBIT II -- HISTORICAL FINANCIAL PERFORMANCE
EXHIBIT III -- STOCK PRICE AND VOLUME PERFORMANCE
IV VALUATION SUMMARY
V SUPPLEMENTAL INFORMATION
EXHIBIT I -- COMPARATIVE COMPANY ANALYSIS
EXHIBIT II -- DISCOUNTED CASH FLOW ANALYSIS
EXHIBIT III -- PREMIUMS PAID ANALYSIS
EXHIBIT IV -- MANAGEMENT FINANCIAL FORECAST
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PaineWebber Incorporated
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Big O Tires, Inc.
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PART I -- EXECUTIVE SUMMARY
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PaineWebber Incorporated 1
<PAGE>
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Big O Tires, Inc.
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EXECUTIVE SUMMARY
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BIG O TIRES -- BUSINESS DESCRIPTION
The primary business of Big O Tires, Inc. ("Big O", "Big O Tires"
or the "Company") is to franchise Big O Tires retail stores and
supply them with tires and related automotive products. On a
limited basis, the Company also owns and operates retail stores.
The following table summarizes the Company's store locations by
region. (1)
<TABLE>
<CAPTION>
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NUMBER OF
NUMBER OF
FRANCHISEE NUMBER OF COMPANY JOINT
VENTURE
REGION OWNED STORES OWNED STORES
STORES TOTAL
<PAGE>
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Southwest Region 84 1 10 95
(includes AZ, southern CA,
NV and UT)
Western Region 97 0 1 98
(Northern CA and NV)
Northwest Region 77 1 1 79
(ID, MT, NV, OR, UT,
WA, and WY)
Central Region 68 0 1 69
(includes CO, NE, NM,
OK, SD, TX, and WY)
Southeast Region 35 2 0 37
(includes IN, KY, and NC)
--- -- -- ---
Total 361 4 13 378
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_________________
(1) As reported in the December 31, 1994 10-K.
</TABLE>
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PaineWebber Incorporated 2
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Big O Tires, Inc.
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EXECUTIVE SUMMARY
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BIG O TIRES STOCK PRICE TIMELINE
[GRAPH]
EXECUTIVE SUMMARY
BIG O TIRES STOCK PRICE TIMELINE
DATE STOCK PRICE COMMENTS
06/01/93 13.500000
06/02/93 15.250000
06/03/93 15.880000 BALBOA INCREASES ITS STAKE TO 312,000 SHARES, 9.9%
06/04/93 15.750000
06/07/93 14.880000
06/08/93 14.750000
06/09/93 15.880000
06/10/93 15.500000
06/11/93 14.500000
06/14/93 14.750000
06/15/93 14.750000
06/16/93 14.250000
06/17/93 14.130000
06/18/93 14.500000
06/21/93 14.250000
06/22/93 14.750000
06/23/93 14.380000
06/24/93 14.750000
06/25/93 15.000000
06/28/93 14.750000
06/29/93 15.250000
06/30/93 15.000000
07/01/93 15.000000
07/02/93 15.250000
07/06/93 15.000000
07/07/93 15.250000
07/08/93 15.130000
07/09/93 14.000000
07/12/93 13.380000
07/13/93 14.500000
07/14/93 14.500000
07/15/93 15.250000
07/16/93 15.130000
07/19/93 14.880000
07/20/93 15.000000
07/21/93 14.380000
07/22/93 14.380000
07/23/93 15.000000
07/26/93 14.630000
07/27/93 14.880000
07/28/93 15.500000
07/29/93 15.500000
07/30/93 15.630000
08/02/93 16.130000
08/03/93 15.750000
08/04/93 15.250000
08/05/93 15.380000
08/06/93 15.880000
08/09/93 15.880000
08/10/93 16.630000
08/11/93 16.250000
08/12/93 17.000000
08/13/93 16.750000
08/16/93 16.250000
08/17/93 16.500000
08/18/93 16.750000
08/19/93 16.750000
08/20/93 16.630000
08/23/93 16.250000
08/24/93 16.250000
08/25/93 16.750000
08/26/93 16.250000
08/27/93 16.380000
08/30/93 16.630000
08/31/93 16.500000
09/01/93 17.130000
09/02/93 16.500000
09/03/93 17.000000
09/07/93 16.250000
09/08/93 16.500000
09/09/93 16.500000
09/10/93 16.000000
09/13/93 16.000000
09/14/93 15.750000
09/15/93 16.000000
09/16/93 16.000000
09/17/93 16.250000
09/20/93 16.250000
09/21/93 15.500000
09/22/93 15.750000
09/23/93 15.500000
09/24/93 15.000000
09/27/93 14.750000
09/28/93 15.000000
09/29/93 14.880000
09/30/93 15.130000
10/01/93 15.000000
10/04/93 15.000000
10/05/93 15.000000
10/06/93 15.250000
10/07/93 14.750000
10/08/93 15.250000
10/11/93 15.000000
10/12/93 15.130000
10/13/93 15.000000
10/14/93 15.000000
10/15/93 16.000000
10/18/93 15.750000
10/19/93 15.880000
10/20/93 15.250000
10/21/93 15.500000
10/22/93 14.750000
10/25/93 15.500000
10/26/93 15.500000
10/27/93 16.250000
10/28/93 15.880000
10/29/93 16.130000
11/01/93 16.000000
11/02/93 15.500000
11/03/93 16.000000
11/04/93 15.250000
11/05/93 14.630000
11/08/93 15.250000
11/09/93 15.500000
11/10/93 15.250000
11/11/93 14.880000
11/12/93 14.880000
11/15/93 15.000000
11/16/93 14.750000
11/17/93 14.750000
11/18/93 15.000000
11/19/93 14.630000
11/22/93 14.250000
11/23/93 14.380000
11/24/93 14.250000
11/29/93 14.380000
11/30/93 15.000000
12/01/93 15.250000
12/02/93 15.500000
12/03/93 15.500000
12/06/93 15.250000
12/07/93 15.250000
12/08/93 15.250000
12/09/93 15.125000
12/10/93 15.375000
12/13/93 14.750000
12/14/93 14.250000
12/15/93 14.250000
12/16/93 14.375000
12/17/93 14.125000
12/20/93 13.875000 PAVIA PROPOSES THAT BIG O TIRES HIRE AN INVESTMENT
BANKING FIRM.
12/21/93 14.750000
12/22/93 14.500000
12/23/93 14.875000
12/27/93 14.875000
12/28/93 14.625000
12/30/93 14.250000
12/31/93 14.250000
01/01/94 14.250000
01/03/94 14.125000
01/04/94 13.875000
01/05/94 14.000000
01/06/94 14.500000
01/07/94 14.000000
01/10/94 14.000000
01/11/94 13.750000
01/12/94 14.000000
01/13/94 13.500000
01/14/94 13.750000
01/17/94 13.500000
01/18/94 13.000000
01/19/94 13.750000
01/20/94 13.375000
01/21/94 13.500000
01/24/94 13.500000
01/25/94 13.125000
01/26/94 13.125000
01/27/94 13.125000
01/28/94 13.625000
01/31/94 14.250000
02/01/94 15.750000
02/02/94 15.500000
02/03/94 15.750000
02/04/94 15.500000
02/07/94 15.375000
02/08/94 15.000000
02/09/94 14.750000
02/10/94 14.500000
02/11/94 14.500000
02/14/94 14.750000
02/15/94 14.500000
02/16/94 14.500000
02/17/94 14.750000
02/18/94 14.375000
02/22/94 14.375000
02/23/94 14.750000
02/24/94 14.750000
02/25/94 13.750000
02/28/94 13.625000
03/01/94 14.250000
03/02/94 13.375000
03/03/94 14.000000
03/04/94 14.000000
03/07/94 14.625000
03/08/94 14.875000
03/09/94 14.875000
03/10/94 14.500000
03/11/94 14.875000
03/14/94 14.625000
03/15/94 15.250000
03/16/94 14.875000
03/17/94 14.750000
03/18/94 15.250000
03/21/94 15.375000
03/22/94 15.750000
03/23/94 15.750000
03/24/94 15.500000
03/25/94 16.000000
03/28/94 16.000000
03/29/94 15.000000
03/30/94 15.500000
03/31/94 14.750000
04/04/94 13.125000
04/05/94 14.750000
04/06/94 14.000000
04/07/94 14.375000
04/08/94 13.875000
04/11/94 13.750000
04/12/94 14.250000
04/13/94 14.000000
04/14/94 15.000000
04/15/94 15.375000
04/18/94 14.750000
04/19/94 14.500000
04/20/94 14.625000
04/21/94 15.000000
04/22/94 15.375000
04/25/94 15.000000
04/26/94 15.500000
04/28/94 15.500000
04/29/94 15.125000
05/02/94 15.500000
05/03/94 15.750000
05/04/94 15.750000
05/05/94 15.500000
05/06/94 15.000000
05/09/94 15.750000
05/10/94 15.250000
05/11/94 14.750000
05/12/94 14.625000
05/13/94 14.625000
05/17/94 15.250000
05/18/94 15.500000
05/19/94 16.000000
05/20/94 15.500000
05/23/94 15.750000
05/24/94 15.250000
05/25/94 15.000000
05/26/94 15.000000
05/27/94 15.000000
05/31/94 15.000000
06/01/94 15.250000
06/02/94 15.375000
06/03/94 15.250000
06/06/94 15.750000
06/07/94 15.625000
06/08/94 15.625000 MAJORITY OF SHAREHOLDERS VOTE IN FAVOR OF PAVIA
PROPOSAL
06/09/94 16.000000
06/10/94 15.500000
06/13/94 15.500000
06/14/94 15.750000
06/15/94 16.125000
06/16/94 16.375000
06/17/94 16.750000
06/20/94 15.875000
06/21/94 16.250000
06/22/94 15.750000
06/23/94 15.750000
06/24/94 15.250000
06/27/94 16.000000
06/28/94 16.250000
06/29/94 16.250000
06/30/94 15.500000
07/01/94 15.750000
07/05/94 15.250000 ENGAGES PAINEWEBBER
07/06/94 14.750000
07/07/94 14.750000
07/08/94 15.250000
07/11/94 15.000000
07/12/94 15.500000
07/13/94 15.630000
07/14/94 15.750000
07/15/94 15.750000
07/18/94 15.000000
07/19/94 16.250000
07/20/94 15.630000
07/21/94 15.630000
07/22/94 16.250000
07/25/94 15.750000
07/26/94 15.880000
07/27/94 15.750000
07/28/94 15.750000
07/29/94 15.750000
08/01/94 15.750000
08/02/94 15.500000
08/03/94 15.630000
08/04/94 15.630000
08/05/94 15.437500
08/08/94 15.000000
08/09/94 15.000000
08/10/94 15.750000
08/11/94 15.000000
08/12/94 15.630000
08/15/94 15.130000
08/16/94 15.630000
08/17/94 15.250000
08/18/94 15.500000
08/19/94 16.000000
08/22/94 15.880000
08/23/94 15.750000
08/24/94 15.380000
08/25/94 15.750000
08/26/94 15.380000 ADOPTS SHAREHOLDERS RIGHTS PLAN
08/29/94 14.880000
08/30/94 15.750000
08/31/94 15.750000
09/01/94 15.880000
09/02/94 16.500000
09/06/94 16.500000
09/07/94 16.500000
09/08/94 15.750000
09/09/94 16.000000
09/12/94 15.750000
09/13/94 15.500000
09/14/94 16.250000
09/15/94 15.750000
09/16/94 16.000000
09/19/94 15.250000
09/20/94 15.250000
09/21/94 16.000000
09/22/94 16.000000 PAVIA TO ASSIST INVESTMENT COMMITTEE
09/23/94 16.000000
09/26/94 15.750000
09/27/94 15.750000
09/28/94 15.500000
09/29/94 15.630000
09/30/94 16.000000
10/03/94 15.500000
10/04/94 15.750000
10/05/94 15.500000
10/06/94 15.500000
10/07/94 16.250000
10/10/94 16.250000
10/11/94 17.000000 OFFER OF $18.00 FROM AKH
10/12/94 17.250000
10/13/94 16.750000
10/14/94 16.625000
10/17/94 16.250000
10/18/94 16.250000
10/19/94 16.625000
10/20/94 16.437500
10/21/94 16.875000
10/24/94 16.625000
10/25/94 16.750000
10/26/94 16.750000
10/27/94 16.750000
10/28/94 16.375000
10/31/94 16.500000
11/01/94 17.000000
11/02/94 17.250000
11/03/94 16.500000
11/04/94 16.000000
11/07/94 16.625000
11/08/94 16.125000
11/09/94 16.500000
11/10/94 15.500000
11/11/94 16.000000
11/14/94 16.000000
11/15/94 15.750000
11/16/94 16.000000
11/17/94 16.250000
11/18/94 15.875000
11/21/94 15.875000
11/22/94 15.875000
11/23/94 16.000000
11/25/94 15.875000
11/28/94 15.875000
11/29/94 16.000000
11/30/94 16.250000
12/01/94 16.000000
12/02/94 16.000000
12/05/94 17.187500 OFFER FROM MGMT. AND DEALERS OF $18.50
12/06/94 17.125000
12/07/94 17.125000
12/08/94 16.750000
12/09/94 16.500000
12/12/94 16.625000
12/13/94 16.750000
12/14/94 16.250000
12/15/94 16.062500
12/16/94 15.750000 AKH WITHDRAWS PROPOSAL
12/20/94 16.375000
12/21/94 16.250000
12/22/94 16.125000 ENTERS INTO EXCLUSIVE NEGOTIATIONS WITH
MANAGEMENT/DEALER GROUP
12/23/94 16.000000
12/27/94 15.750000
12/28/94 15.750000
12/29/94 15.250000
12/30/94 15.250000
01/01/95 15.250000
01/03/95 15.750000
01/04/95 16.250000
01/05/95 15.875000
01/06/95 16.000000
01/09/95 15.875000
01/10/95 15.625000
01/11/95 15.875000
01/12/95 15.500000
01/13/95 15.625000
01/16/95 15.500000
01/17/95 15.625000
01/18/95 15.625000
01/19/95 15.500000
01/20/95 15.375000
01/23/95 16.625000
01/24/95 15.250000
01/25/95 15.625000
01/26/95 15.500000
01/27/95 15.562500
01/30/95 15.375000
01/31/95 15.625000
02/01/95 15.750000
02/02/95 15.500000
02/03/95 15.625000
02/06/95 15.937500
02/07/95 15.750000 MANAGEMENT/DEALER GROUP DECIDES NOT TO PURSUE
ACQUISITION
02/08/95 14.250000
02/09/95 14.375000
02/10/95 14.625000
02/13/95 14.125000
02/14/95 13.750000
02/15/95 13.875000
02/16/95 13.937500
02/17/95 14.000000
02/21/95 13.625000
02/22/95 13.625000
02/23/95 14.000000
02/24/95 14.000000
02/27/95 13.375000
02/28/95 13.250000
03/01/95 13.500000
03/02/95 13.750000
03/03/95 13.625000
03/06/95 13.750000
03/07/95 13.500000
03/08/95 14.000000
03/09/95 14.125000
03/10/95 14.625000
03/13/95 14.375000
03/14/95 14.375000
03/15/95 14.500000
03/16/95 14.250000
03/17/95 14.375000
03/20/95 13.875000
03/21/95 14.125000
03/22/95 13.875000
03/23/95 13.500000
03/24/95 13.250000
03/27/95 13.250000
03/28/95 13.250000
03/29/95 13.250000
03/30/95 13.000000
03/31/95 13.000000
04/03/95 13.000000
04/04/95 13.375000
04/05/95 13.875000
04/06/95 13.750000 OFFER FROM MGMT. AND DEALERS OF $16.00
04/07/95 13.625000
04/10/95 13.750000
04/11/95 13.750000
04/12/95 13.875000
04/13/95 13.750000
04/17/95 13.750000
04/18/95 13.250000
04/19/95 13.625000
04/20/95 13.625000
04/21/95 13.250000
04/24/95 13.375000
04/25/95 13.250000
04/26/95 13.250000
04/27/95 13.375000
04/28/95 13.750000
05/01/95 14.250000
05/02/95 14.125000
05/03/95 13.750000
05/04/95 14.000000
05/05/95 14.000000
05/08/95 13.500000
05/09/95 14.000000
05/10/95 14.000000
05/11/95 13.750000
05/12/95 13.875000
05/15/95 13.625000
05/16/95 14.500000
05/17/95 13.500000
05/18/95 13.250000
05/19/95 13.250000
05/23/95 13.500000
05/24/95 13.750000
05/25/95 14.000000
05/26/95 13.250000
05/30/95 13.500000
05/31/95 13.750000
06/02/95 13.750000
06/05/95 14.500000 OFFER INCREASED TO $16.50/SHARE
06/06/95 14.250000
06/07/95 14.000000
06/08/95 15.000000
06/09/95 14.500000
06/12/95 14.625000
06/13/95 14.625000
06/14/95 14.625000
06/15/95 14.750000
06/16/95 14.750000
06/19/95 14.750000
06/20/95 14.750000
06/21/95 15.000000
06/22/95 14.750000
06/23/95 14.625000
06/26/95 14.500000
06/27/95 14.500000
06/28/95 14.625000
06/29/95 14.687500
07/03/95 14.625000
07/05/95 14.625000
07/06/95 14.375000
07/07/95 14.500000
07/10/95 15.000000
07/11/95 14.250000
07/12/95 14.125000
07/13/95 13.625000
07/14/95 14.500000
07/17/95 14.875000
07/18/95 14.375000
07/19/95 14.000000
07/20/95 14.375000
07/21/95 14.375000
07/24/95 14.375000 SIGNING OF DEFINITIVE MERGER AGREEMENT
07/25/95 14.250000
07/26/95 14.750000
07/27/95 14.625000
07/28/95 14.500000
07/31/95 14.250000
08/01/95 14.250000
08/02/95 14.500000
08/03/95 14.250000
08/04/95 14.250000
08/08/95 14.375000
08/09/95 14.000000
08/10/95 14.125000
08/11/95 14.500000
08/14/95 14.500000
08/15/95 14.625000
08/16/95 15.000000 FINANCING CONTINGENCY REMOVED
08/17/95 14.500000
08/21/95 14.375000
08/22/95 14.375000
08/23/95 14.625000
08/24/95 14.250000
08/25/95 14.375000
08/28/95 14.250000
08/29/95 14.250000
08/30/95 14.500000
08/31/95 14.125000
09/01/95 14.125000
09/05/95 13.125000
09/06/95 13.750000
09/07/95 13.375000
09/08/95 13.750000
09/11/95 13.500000
09/12/95 13.875000
09/13/95 13.750000
09/14/95 13.625000
09/15/95 13.625000
09/18/95 13.750000
09/19/95 14.000000
09/21/95 14.000000
09/25/95 13.625000
09/26/95 13.625000
09/27/95 13.000000
09/28/95 13.000000
09/29/95 12.750000
10/02/95 13.375000
10/03/95 12.500000
10/04/95 12.375000
10/05/95 12.250000
10/06/95 12.625000
10/09/95 13.750000
10/10/95 13.375000
10/11/95 14.125000
10/12/95 14.500000
10/13/95 14.625000
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PaineWebber Incorporated 3
<PAGE>
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Big O Tires, Inc.
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EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
CHRONOLOGY OF EVENTS
- -------------------------------------------------------------------------------
DATE EVENT
June 3, 1993 7 Investment Group increases its stake in Big O Tires to
312,000 shares, or 9.9%
December 20, 1993 Balboa Investment Group delivers proposal to Company for
inclusion in the Company's 1994 Proxy Statement recommending
that the Company hire an investment banking firm to explore
alternatives for enhancing shareholder value including,
among other options, the sale of the Company
May 23, 1994 Company retains M. Kane & Co. to help evaluate possible
store acquisitions
June 8, 1994 Shareholders approve proposal to hire an investment bank to
explore ways of enhancing the Company's value
July 5, 1994 PaineWebber engaged to advise Company
August 26, 1994 Company adopts rights plan
September 22, 1994 Kenneth Pavia, Big O's second-largest shareholder, invited
to assist Investment Committee
October 11, 1994 Company receives proposal of $18.00 per share from AKH
Company, Inc.
December 5, 1994 Company receives buyout offer from senior management and
franchised dealers of $18.50 per share
December 16, 1994 AKH Company, Inc. ("AKH") withdraws proposal
December 22, 1994 Big O Tires enters into exclusive negotiations with manager/
dealer group
February 7, 1995 Manager/dealer group decides not to pursue acquisition of
Big O
April 6, 1995 Company receives new offer from manager/dealer group of
$16.00 per share
June 5, 1995 Management group boosts offer to $16.50 per share
July 24, 1995 Company announces the signing of a definitive merger
agreement with the management group at $16.50 per share
August 16, 1995 Management group removes financing contingency
August 31, 1995 Extension granted until October 2, 1995 to satisfy or waive
the contingency that requires participation in the
management group by the Company's dealers representing not
less than 85% of the Company's stores
October 2, 1995 Extension granted until October 16, 1995 to satisfy or
waive the 85% participation contingency
October 5, 1995 Management achieves 82% store-participation and waives
contingency
- -------------------------------------------------------------------------------
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PaineWebber Incorporated 4
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
MARKETING PROCESS OVERVIEW
/ / In the fall of 1994, PaineWebber began to contact parties with respect to
possible interest in acquiring the Company
/ / 17 potential purchasers were contacted
-- 7 Confidentiality Agreements were executed
POTENTIAL STRATEGIC BUYERS
- -------------------------------------------------------------------------------
Company Comments
- -------------------------------------------------------------------------------
Acklands Ltd Interest in Canadian operations only
AKII Company Preliminary letter of intent at $18.00
Bridgestone Firestone Inc. Not interested
Canadian Tire Not interested. Overlap of licensed stores
in British Columbia
Cooper Tire & Rubber Co. Not interested
Discount Tire Co. Inc. Not interested
Goodyear Tire & Rubber Co. Not interested
The Kelly-Springfield Tire Co. Not interested
Michelin Tire Corp. Not interested
Montgomery Ward Not interested
Whitman Corp. Not interested
- -------------------------------------------------------------------------------
POTENTIAL FINANCIAL BUYERS
- -------------------------------------------------------------------------------
Company Comments
- -------------------------------------------------------------------------------
Fremont Capital Unwilling to execute Confidentiality
Agreement
Citicorp Venture Capital Not interested
Heller Financial Not interested
Vestar Not interested
Wafra Investment Advisory Not interested
Wasserstein Perella Merchant
Banking Fund Not interested
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
PaineWebber Incorporated 5
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
MARKETING PROCESS OVERVIEW (CONT'D)
/ / The Company initially received two written acquisition proposals:
-- On October 11, 1994, AKH, a California-based company which owns retail
tire dealerships, delivered a letter to the Company proposing an
acquisition of $18.00 per share in cash subject to due diligence,
financing and other conditions
-- On December 2, 1994, the Company received a letter from a group comprised
of certain members of Big O's management and dealers that proposed to
acquire all of the outstanding shares of the Company for $18.50 per share
subject to, among other things:
-- obtaining financing
-- participation by at least 80% of the shares held by the Company's ESOP
-- participation by franchise dealers having at least 85% of the
franchise locations
/ / On December 6, 1994, two class-action lawsuits were filed seeking to enjoin
the transaction and the implementation of the Shareholder Rights Plan
-- On March 31, 1995, such lawsuits were dismissed
/ / On December 16, 1994, Big O Tires received a letter from AKH indicating that
it would not proceed with its proposal until the proposal submitted by the
Company's management and dealers was no longer being considered
_________________
Note: Prior to being retained as financial advisor to the Company with respect
to strategic alternatives. PaineWebber acted as financial advisor to Big O in
conjunction with an $8.0 million Senior Notes Offering.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 6
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
MARKETING PROCESS OVERVIEW (CONT'D)
/ / On February 7, 1995, the Company received a letter from Big O's management
and dealers advising that the group had elected to discontinue pursuing an
acquisition as a result of, among other issues:
-- the difficulties experienced in obtaining financing commitments
-- the inability of the Company's management and dealers' to reach agreement
on certain issues relating to the acquisition
/ / On February 8, 1995, the Company publicly disclosed Big O's management and
dealers intentions
/ / April 6, 1995, the Company received a new proposal from the Company's
management and dealers to acquire Big O for a cash price of $16.00
-- the Investment Committee of the Board (the "Investment Committee")
determined not to accept the $16.00 per share offer and advised the
management and dealer group that it would be open to further negotiations
at a more favorable price
/ / On June 7, 1995, after a series of negotiations the Company entered into an
agreement with the dealer management group with respect to an offer at
$16.50, subject to similar conditions highlighted in the group's December 2,
1994 proposal letter
- -------------------------------------------------------------------------------
PaineWebber Incorporated 7
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
TRANSACTION OVERVIEW
/ / Proposed acquisition by merger of Big O Tires by certain members of senior
management and certain franchise dealers of Big O Tires for $16.50 per share
in cash (the "Merger Consideration")
-- Based on all outstanding shares of common stock and common stock
equivalents, the total value of the transaction is approximately $71.5
million
-- A portion of the shares held by certain members of management and
participants in the Company's ESOP shall be canceled without payment
/ / In the merger, all shares (other than the Excluded Shares) will be converted
into a right to receive the merger Consideration.
-- "Excluded Shares" means shares of the Company's common stock that are (i)
held by certain members of the Company's senior management, (ii) held by
certain participants in the Company's Employee Stock Ownership Plan or
(iii) held by, or under contract to be acquired by: (A) the Company, or
both (B) their respective direct or indirect subsidiaries or (C) any
stockholder or affiliate or both
- -------------------------------------------------------------------------------
PaineWebber Incorporated 8
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
TRANSACTION OVERVIEW (CONT'D)
/ / Transaction is currently conditioned upon, among others things:
-- Approval by at least 80% of the shares of Company common stock held by
the ESOP
-- The absence of any governmental or regulatory prohibitions against the
merger
-- Shareholder approval
-- Receipt of opinions as to the fairness of the transaction from a
financial point of view to the disinterested stockholders and
participants in the ESOP
/ / Big O Tires has requested that PaineWebber provide the Board of Directors
with an opinion as to whether or not the Merger Consideration is fair, from
a financial point of view, to the holders of the Company's common stock
(other than holders of the Excluded Shares)
- -------------------------------------------------------------------------------
PaineWebber Incorporated 9
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
TRANSACTION OVERVIEW (CONT'D)
<TABLE>
<CAPTION>
CALCULATION OF TOTAL PURCHASE PRICE
- -------------------------------------------------------------------------------
($ IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
- -------------------------------------------------------------------------------
<S> <C>
Offer Price Per Share $ 16.50
Shares Outstanding (1)(2) 3,436
-------
Implied Equity Value 56,697
Plus: Total Debt 19,019
Less: Cash and Equivalents (4,254)
-------
Implied Total Enterprise Value $71,462
=======
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OPERATING STATISTICS
- -------------------------------------------------------------------------------
LTM (3) LTM LTM LTM Net 1995E Net 1996E Net
Revenues EBITDA (4) EBIT (5) Income Income (6)(7) Income (6)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$141,218 $9,889 $8,237 $3,913 $4,068 $4,859
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MULTIPLE ANALYSIS
- -------------------------------------------------------------------------------
TEV/LTM TEV/LTM TEV/LTM MV/LTM MV/1995E MV/1996E
Revenues EBITDA EBIT Net Income Net Income Net Income
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
0.51x 7.2x 8.7x 14.5x 13.9x 11.7x
- -------------------------------------------------------------------------------
</TABLE>
________________
(1) Based on 3,317,840 common shares outstanding as of November 10, 1995 plus
118,318 options outstanding, assuming the treasury stock method, as of
December 31, 1994.
(2) Options outstanding under the treasury stock method are calculated based
on 226,347 options outstanding as of December 31, 1994, and assume on
average option exercise price and stock price of $7.88 and $16.50
respectively.
(3) LTM = Latest twelve months ended September 30, 1995.
(4) EBITDA = Earnings Before Interest Taxes, Depreciation and Amortization.
(5) EBIT = Earnings Before Interest and Taxes.
(6) Based on Company Projections.
(7) Excludes $1,274,000 of extraordinary items including shareholder proposal
expense, losses on the sale or closure of retail stores, and warehouse
consolidation costs. A 42.0% tax rate is assumed.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 10
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXECUTIVE SUMMARY
- -------------------------------------------------------------------------------
VALUATION SUMMARY
/ / The chart below depicts the following:
-- The range of equity values based on the valuation methodologies employed
by PaineWebber; and
-- The implied fully diluted per share value of the Big O Tires management
and dealer offer
COMPARISON OF IMPLIED BIG O TIRES PER SHARE VALUE BY METHODOLOGY (1)
[GRAPH]
EXECUTIVE SUMMARY
VALUATION SUMMARY
- - THE CHART BELOW DEPICTS THE FOLLOWING:
- THE RANGE OF EQUITY VALUES BASED ON THE VALUATION METHODOLOGIES EMPLOYED
BY PAINEWEBBER; AND
- - THE IMPLIED FULLY DILUTED PER SHARE VALUE OF THE BIG O TIRES MANAGEMENT AND
DEALER OFFER
COMPARISON OF IMPLIED BIG O TIRES PER SHARE VALUE BY METHODOLOGY (1)
[BAR GRAPH APPEARS HERE]
CATEGORY $ PER SHARE
BOOK VALUE (9/30/95) 11.20
MARKET VALUE (11/10/95) 14.75
MARKET VALUE (52 WEEK HIGH/LOW) 12.00 - 17.38
DISCOUNTED CASH FLOW ANALYSIS 14.95 - 20.32
COMPARATIVE COMPANY ANALYSIS (NO PREMIUM) 11.87 - 16.32
COMPARATIVE COMPANY ANALYSIS (30% PREMIUM)(2) 15.43 - 21.22
[NOTE: ABOVE STOCK PRICES COMPARED WITH $16.50 PER SHARE OFFER PRICE]
(1) AS OF SEPTEMBER 10, 1995, BIG O TIRES HAD 3,317,840 SHARES OF COMMON STOCK
OUTSTANDING AND 226,347 COMMON STOCK OPTIONS OUTSTANDING WITH AN AVERAGE
EXERCISE PRICE OF $7.88.
(2) PREMIUM BASED ON RETAIL INDUSTRY (AS DEFINED BY SDC) TRANSACTIONS FROM
JANUARY 1, 1990 TO NOVEMBER 3, 1994.
________________
(1) As of September 10, 1995, Big O Tires had 3,317,840 shares of common
stock outstanding and 226,347 common stock options outstanding with an
average exercise price of $7.88.
(2) Premium based on retail industry (as defined by SDC) transactions from
January 1, 1990 to November 3, 1994.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 11
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
PART II -- REVIEW OF DUE DILIGENCE
- -------------------------------------------------------------------------------
PaineWebber Incorporated 12
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
REVIEW OF DUE DILIGENCE
- -------------------------------------------------------------------------------
/ / Reviewed Big O Tires Annual Reports, Forms 10-K and related financial
information for the three fiscal years ended December 31, 1992, 1993 and
1994 and Company's draft Form 10-Q and related unaudited financial
information for the nine months ended September 30, 1995.
/ / Reviewed certain information, including financial forecasts, relating
to the business, earnings, cash flow, assets and prospects of Big O Tires,
furnished to PaineWebber by Big O Tires.
/ / Visited Big O Tires facilities and conducted discussions with members
of senior management of Big O Tires concerning its business and prospects.
/ / Reviewed the historical market prices and trading activity for Big O
Tires common stock and compared them with those of certain publicly traded
companies which PaineWebber deemed relevant.
/ / Compared the results of operations of Big O Tires with those of certain
companies which PaineWebber deemed relevant.
/ / Compared the results of operations of the Company with those of certain
companies which PaineWebber deemed relevant.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 13
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
REVIEW OF DUE DILIGENCE
--------------------------------------------------------------------
/ / Compared the proposed financial terms of the Merger with the
financial terms of certain other mergers and acquisitions which
PaineWebber deemed relevant.
/ / Reviewed the merger agreement and the draft proxy statement
relating to the Merger as proposed to be filed with the
Securities and Exchange Commission.
/ / Reviewed such other financial studies and analyses and performed
such other investigations and took into account such other
matters as PaineWebber deemed appropriate, including its
assessment of general economic, market and monetary conditions.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 14
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
PART III -- BIG O TIRES, INC.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 15
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXHIBIT I -- COMPANY OVERVIEW
- -------------------------------------------------------------------------------
PaineWebber Incorporated 16
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
COMPANY OVERVIEW
--------------------------------------------------------------------
/ / Big O Tires, Inc., is one of the largest independent retail tire
and auto service franchisers in North America, with 378 stores in
18 states primarily in the West and Midwest (1). The Company
also distributes tires and other automotive products to 40
Associated Dealers in British Columbia, Canada. It is the sole
distributor of its private Big O brand tires and a major
distributor of other brands such as Michelin, B.F. Goodrich and
Uniroyal, as well as aftermarket suspension parts manufactured by
Monroe Auto Equipment.
/ / In June 1993, the Company adopted a plan to consolidate three of
its regional distribution centers into a single warehouse
facility to be located near Las Vegas, Nevada. One of the three
regional distribution centers to be consolidated was located in
Denver, Colorado, and the other two were located in the cities of
Ontario and Vacaville, California. The Nevada warehouse facility
was opened on March 14, 1995.
/ / The Company's sales by product line in 1994 were as follows:
--------------------------------------------------------------------
(IN THOUSANDS)
% OF TOTAL
UNITS REVENUES (1) PRODUCT SALES
----- ------------ -------------
Big O Brand Tires 1,410 $80,424 68.0%
Other Brand Tires 646 26,472 22.0
Wheels, Shocks and Other
Accessories 1,338 12,051 10.0
--------------------------------------------------------------------
_________________
(1) Source: December 31, 1994 10-K.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 17
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
COMPANY OVERVIEW
--------------------------------------------------------------------
/ / In July 1994, the Company implemented its "Cost-U-Less"
marketing program. This program provided, along with a marketing
message of competitive pricing on all products and services, a
reduction in the cost of Big O brand tires to the Company's
franchisees. This allowed the franchisees to offer Big O brand
products to retail customers at lower retail prices which
generally allowed the franchisees to be more competitive in
their markets
/ / The program has resulted in an increase in the percent of tires
sold that are Big O brand, which generally provide a higher
margin than non-Big O brand tires
- -------------------------------------------------------------------------------
PaineWebber Incorporated 18
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
COMPANY OVERVIEW
--------------------------------------------------------------------
BIG O TIRES OWNERSHIP SUMMARY(1)
COMPANY OVERVIEW
BIG O TIRES OWNERSHIP SUMMARY (1)
[PIE GRAPH APPEARS HERE]
DIRECTORS AND EXECUTIVE OFFICERS 5.4%
BALBOA INVESTMENT GROUP 9.4%
ESOP 19.2%
OTHER 66.0%
(1) BASED ON THE COMPANY'S PROXY STATEMENT DATED APRIL 29, 1995.
_________________
(1) Based on the Company's Proxy Statement dated April 29, 1995.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 19
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXHIBIT II -- HISTORICAL FINANCIAL
PERFORMANCE
- -------------------------------------------------------------------------------
PaineWebber Incorporated 20
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
HISTORICAL FINANCIAL PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES INCOME STATEMENT DATA
--------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
($ IN THOUSANDS, EXCEPT FOR THE NINE MONTHS
PER SHARE DATA) FOR THE FISCAL YEARS ENDING DECEMBER 31, ENDING SEPTEMBER 30,
-------------------------------------------------------- --------------------
1989 1990 1991 1992 1993 1994 1994 1995
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $108,227 $106,902 $113,836 $119,799 $122,960 $127,678 $94,132 $107,672
SALES GROWTH 15.7% (1.2)% 6.5% 5.2% 2.6% 3.8%
Cost of Sales 85,627 84,618 88,638 92,150 95,329 97,547 72,203 84,737
-------- -------- -------- -------- ------- ------- ------- --------
Gross Profit 22,600 22,284 25,198 27,649 27,631 30,131 21,929 22,935
GROSS MARGIN 20.9% 20.8% 22.1% 23.1% 22.5% 23.7% 23.3% 21.3%
Selling, General
and Admin. 18,897 18,823 20,173 21,713 21,815 22,245 16,990 17,645
-------- -------- -------- -------- ------- ------- ------- --------
AS A % OF NET
SALES 17.5% 17.6% 17.7% 18.1% 17.7% 17.4% 18.0% 16.4%
Operating Income 3,703 3,461 5,025 5,936 5,816 7,886 4,939 5,290
OPERATING MARGIN 3.4% 3.2% 4.4% 5.0% 4.7% 6.2% 5.2% 4.9%
Net Interest
Expense 1,328 1,891 1,575 1,170 1,219 1,465 1,177 1,199
-------- -------- -------- -------- ------- ------- ------- --------
Pre-Tax Income 2,375(1) 1,570(2) 3,450(3) 4,766 4,597(4) 6,421(5) 3,762(6) 4,091(7)
Income Taxes 998 659 1,449 1,983 1,953 2,698 1,580 1,719
-------- -------- -------- -------- ------- ------- ------- --------
Net Income 1,377(1) 911(2) 2,001(3) 2,783 2,644(4) 3,723(5) 2,182(6) 2,372(7)
NET MARGIN 1.3% 0.9% 1.8% 2.3% 2.2% 2.9% 2.3% 2.2%
Earnings Per
Share (8) $0.43 $0.26 $0.57 $0.80 $ 0.78 $ 1.11 $ 0.65 $ 0.70
-------- -------- -------- -------- ------- ------- ------- --------
-------------------------------------------------------------------------------------------------
</TABLE>
_________________
(1) Excludes a $314,800 gain on sale of retail stores. A 42.0% tax
rate is assumed for net income calculation.
(2) Excludes a $305,300 loss on retail stores closed. A 42.0% tax
rate is assumed for net income calculation.
(3) Excludes a $310,600 loss on retail stores closed. A 42.0% tax
rate is assumed for net income calculation.
(4) Excludes extraordinary charges totaling $1,317,111. A 42.0%
tax rate is assumed for net income calculation.
(5) Excludes extraordinary charges totaling $1,780,000 A 42% tax
rate is assumed for net income calculation.
(6) Excludes $345,000 shareholder proposal expense and $911,000
loss on sale or closure of retail stores. A 42.0% is tax rate
is assumed for net income calculation.
(7) Excludes $967,000 shareholder proposal expense. $312,000 loss
on sale or closure of retail stores and $320,000 warehouse
consolidation costs. A 42.0% tax rate is assumed for net
income calculation.
(8) All earnings per share figures have been adjusted for the
Company's 5-for-1 reverse stock split effective June 15, 1992.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 21
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
HISTORICAL FINANCIAL PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES BALANCE SHEET DATA
--------------------------------------------------------------------
<TABLE>
<CAPTION>
($ IN THOUSANDS)
AS OF DECEMBER 31, AS OF SEPTEMBER 30,
-------------------------------------- -------------------
1991 1992 1993 1994 1995
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Current Assets
Cash and Equivalents $ 1,873 $ 1,590 $ 1,113 $ 4,882 $ 854
Accounts and Other Receivable 13,071 8,835 7,722 11,070 13,638
Inventories 13,839 15,348 11,748 14,219 17,751
Other 3,722 3,721 3,553 3,547 3,321
------- ------- ------- ------- -------
Total Current Assets 32,505 29,494 24,136 33,718 35,564
Net Property, Plant and Equipment 12,566 12,166 13,153 12,031 19,095
Other Assets 14,860 16,019 19,318 16,219 15,187
------- ------- ------- ------- -------
Total Assets $59,932 $57,679 $56,607 $61,968 $69,846
------- ------- ------- ------- -------
Current Liabilities
Accounts Payable $ 4,485 $ 5,085 $ 3,613 $ 650 $ 5,418
Current Portion of Long Term Debt 1,558 1,355 2,649 2,066 1,643
Other 5,801 5,721 6,650 6,335 6,750
------- ------- ------- ------- -------
Total Current Liabilities 11,844 12,161 12,912 9,051 13,811
Long Term Debt 14,648 9,359 11,037 15,906 17,376
Other Long Term Liabilities 2,508 1,969 1,170 1,882 1,499
------- ------- ------- ------- -------
Total Liabilities 29,000 23,489 25,119 26,839 32,686
Shareholders' Equity 30,932 34,190 31,488 35,129 37,160
------- ------- ------- ------- -------
Total Liabilities and
Shareholders' Equity $59,932 $57,679 $56,607 $61,968 $ 69,846
------- ------- ------- ------- --------
Total Debt/Total Capitalization 34.4% 23.9% 30.3% 34.0% 33.9%
Total Debt/Total Equity 52.4% 31.3% 43.5% 51.2% 51.2%
- ----------------------------------------------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
PaineWebber Incorporated 22
<PAGE>
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXHIBIT III -- STOCK PRICE AND VOLUME PERFORMANCE
- -------------------------------------------------------------------------------
PaineWebber Incorporated 23
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
STOCK PRICE AND VOLUME PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES STOCK PRICE -- LATEST 24 MONTHS
[GRAPH APPEARS HERE]
STOCK PRICE AND VOLUME PERFORMANCE
BIG O TIRES STOCK PRICE - LATEST 24 MONTHS
DATE STOCK PRICE
11/09/93 15.500000
11/10/93 15.250000
11/11/93 14.880000
11/12/93 14.880000
11/15/93 15.000000
11/16/93 14.750000
11/17/93 14.750000
11/18/93 15.000000
11/19/93 14.630000
11/22/93 14.250000
11/23/93 14.380000
11/24/93 14.250000
11/29/93 14.380000
11/30/93 15.000000
12/01/93 15.250000
12/02/93 15.500000
12/03/93 15.500000
12/06/93 15.250000
12/07/93 15.250000
12/08/93 15.250000
12/09/93 15.125000
12/10/93 15.375000
12/13/93 14.750000
12/14/93 14.250000
12/15/93 14.250000
12/16/93 14.375000
12/17/93 14.125000
12/20/93 13.875000
12/21/93 14.750000
12/22/93 14.500000
12/23/93 14.875000
12/27/93 14.875000
12/28/93 14.625000
12/30/93 14.250000
12/31/93 14.250000
01/01/94 14.250000
01/03/94 14.125000
01/04/94 13.875000
01/05/94 14.000000
01/06/94 14.500000
01/07/94 14.000000
01/10/94 14.000000
01/11/94 13.750000
01/12/94 14.000000
01/13/94 13.500000
01/14/94 13.750000
01/17/94 13.500000
01/18/94 13.000000
01/19/94 13.750000
01/20/94 13.375000
01/21/94 13.500000
01/24/94 13.500000
01/25/94 13.125000
01/26/94 13.125000
01/27/94 13.125000
01/28/94 13.625000
01/31/94 14.250000
02/01/94 15.750000
02/02/94 15.500000
02/03/94 15.750000
02/04/94 15.500000
02/07/94 15.375000
02/08/94 15.000000
02/09/94 14.750000
02/10/94 14.500000
02/11/94 14.500000
02/14/94 14.750000
02/15/94 14.500000
02/16/94 14.500000
02/17/94 14.750000
02/18/94 14.375000
02/22/94 14.375000
02/23/94 14.750000
02/24/94 14.750000
02/25/94 13.750000
02/28/94 13.625000
03/01/94 14.250000
03/02/94 13.375000
03/03/94 14.000000
03/04/94 14.000000
03/07/94 14.625000
03/08/94 14.875000
03/09/94 14.875000
03/10/94 14.500000
03/11/94 14.875000
03/14/94 14.625000
03/15/94 15.250000
03/16/94 14.875000
03/17/94 14.750000
03/18/94 15.250000
03/21/94 15.375000
03/22/94 15.750000
03/23/94 15.750000
03/24/94 15.500000
03/25/94 16.000000
03/28/94 16.000000
03/29/94 15.000000
03/30/94 15.500000
03/31/94 14.750000
04/04/94 13.125000
04/05/94 14.750000
04/06/94 14.000000
04/07/94 14.375000
04/08/94 13.875000
04/11/94 13.750000
04/12/94 14.250000
04/13/94 14.000000
04/14/94 15.000000
04/15/94 15.375000
04/18/94 14.750000
04/19/94 14.500000
04/20/94 14.625000
04/21/94 15.000000
04/22/94 15.375000
04/25/94 15.000000
04/26/94 15.500000
04/28/94 15.500000
04/29/94 15.125000
05/02/94 15.500000
05/03/94 15.750000
05/04/94 15.750000
05/05/94 15.500000
05/06/94 15.000000
05/09/94 15.750000
05/10/94 15.250000
05/11/94 14.750000
05/12/94 14.625000
05/13/94 14.625000
05/17/94 15.250000
05/18/94 15.500000
05/19/94 16.000000
05/20/94 15.500000
05/23/94 15.750000
05/24/94 15.250000
05/25/94 15.000000
05/26/94 15.000000
05/27/94 15.000000
05/31/94 15.000000
06/01/94 15.250000
06/02/94 15.375000
06/03/94 15.250000
06/06/94 15.750000
06/07/94 15.625000
06/08/94 15.625000
06/09/94 16.000000
06/10/94 15.500000
06/13/94 15.500000
06/14/94 15.750000
06/15/94 16.125000
06/16/94 16.375000
06/17/94 16.750000
06/20/94 15.875000
06/21/94 16.250000
06/22/94 15.750000
06/23/94 15.750000
06/24/94 15.250000
06/27/94 16.000000
06/28/94 16.250000
06/29/94 16.250000
06/30/94 15.500000
07/01/94 15.750000
07/05/94 15.250000
07/06/94 14.750000
07/07/94 14.750000
07/08/94 15.250000
07/11/94 15.000000
07/12/94 15.500000
07/13/94 15.630000
07/14/94 15.750000
07/15/94 15.750000
07/18/94 15.000000
07/19/94 16.250000
07/20/94 15.630000
07/21/94 15.630000
07/22/94 16.250000
07/25/94 15.750000
07/26/94 15.880000
07/27/94 15.750000
07/28/94 15.750000
07/29/94 15.750000
08/01/94 15.750000
08/02/94 15.500000
08/03/94 15.630000
08/04/94 15.630000
08/05/94 15.437500
08/08/94 15.000000
08/09/94 15.000000
08/10/94 15.750000
08/11/94 15.000000
08/12/94 15.630000
08/15/94 15.130000
08/16/94 15.630000
08/17/94 15.250000
08/18/94 15.500000
08/19/94 16.000000
08/22/94 15.880000
08/23/94 15.750000
08/24/94 15.380000
08/25/94 15.750000
08/26/94 15.380000
08/29/94 14.880000
08/30/94 15.750000
08/31/94 15.750000
09/01/94 15.880000
09/02/94 16.500000
09/06/94 16.500000
09/07/94 16.500000
09/08/94 15.750000
09/09/94 16.000000
09/12/94 15.750000
09/13/94 15.500000
09/14/94 16.250000
09/15/94 15.750000
09/16/94 16.000000
09/19/94 15.250000
09/20/94 15.250000
09/21/94 16.000000
09/22/94 16.000000
09/23/94 16.000000
09/26/94 15.750000
09/27/94 15.750000
09/28/94 15.500000
09/29/94 15.630000
09/30/94 16.000000
10/03/94 15.500000
10/04/94 15.750000
10/05/94 15.500000
10/06/94 15.500000
10/07/94 16.250000
10/10/94 16.250000
10/11/94 17.000000
10/12/94 17.250000
10/13/94 16.750000
10/14/94 16.625000
10/17/94 16.250000
10/18/94 16.250000
10/19/94 16.625000
10/20/94 16.437500
10/21/94 16.875000
10/24/94 16.625000
10/25/94 16.750000
10/26/94 16.750000
10/27/94 16.750000
10/28/94 16.375000
10/31/94 16.500000
11/01/94 17.000000
11/02/94 17.250000
11/03/94 16.500000
11/04/94 16.000000
11/07/94 16.625000
11/08/94 16.125000
11/09/94 16.500000
11/10/94 15.500000
11/11/94 16.000000
11/14/94 16.000000
11/15/94 15.750000
11/16/94 16.000000
11/17/94 16.250000
11/18/94 15.875000
11/21/94 15.875000
11/22/94 15.875000
11/23/94 16.000000
11/25/94 15.875000
11/28/94 15.875000
11/29/94 16.000000
11/30/94 16.250000
12/01/94 16.000000
12/02/94 16.000000
12/05/94 17.187500
12/06/94 17.125000
12/07/94 17.125000
12/08/94 16.750000
12/09/94 16.500000
12/12/94 16.625000
12/13/94 16.750000
12/14/94 16.250000
12/15/94 16.062500
12/16/94 15.750000
12/20/94 16.375000
12/21/94 16.250000
12/22/94 16.125000
12/23/94 16.000000
12/27/94 15.750000
12/28/94 15.750000
12/29/94 15.250000
12/30/94 15.250000
01/01/95 15.250000
01/03/95 15.750000
01/04/95 16.250000
01/05/95 15.875000
01/06/95 16.000000
01/09/95 15.875000
01/10/95 15.625000
01/11/95 15.875000
01/12/95 15.500000
01/13/95 15.625000
01/16/95 15.500000
01/17/95 15.625000
01/18/95 15.625000
01/19/95 15.500000
01/20/95 15.375000
01/23/95 16.625000
01/24/95 15.250000
01/25/95 15.625000
01/26/95 15.500000
01/27/95 15.562500
01/30/95 15.375000
01/31/95 15.625000
02/01/95 15.750000
02/02/95 15.500000
02/03/95 15.625000
02/06/95 15.937500
02/07/95 15.750000
02/08/95 14.250000
02/09/95 14.375000
02/10/95 14.625000
02/13/95 14.125000
02/14/95 13.750000
02/15/95 13.875000
02/16/95 13.937500
02/17/95 14.000000
02/21/95 13.625000
02/22/95 13.625000
02/23/95 14.000000
02/24/95 14.000000
02/27/95 13.375000
02/28/95 13.250000
03/01/95 13.500000
03/02/95 13.750000
03/03/95 13.625000
03/06/95 13.750000
03/07/95 13.500000
03/08/95 14.000000
03/09/95 14.125000
03/10/95 14.625000
03/13/95 14.375000
03/14/95 14.375000
03/15/95 14.500000
03/16/95 14.250000
03/17/95 14.375000
03/20/95 13.875000
03/21/95 14.125000
03/22/95 13.875000
03/23/95 13.500000
03/24/95 13.250000
03/27/95 13.250000
03/28/95 13.250000
03/29/95 13.250000
03/30/95 13.000000
03/31/95 13.000000
04/03/95 13.000000
04/04/95 13.375000
04/05/95 13.875000
04/06/95 13.750000
04/07/95 13.625000
04/10/95 13.750000
04/11/95 13.750000
04/12/95 13.875000
04/13/95 13.750000
04/17/95 13.750000
04/18/95 13.250000
04/19/95 13.625000
04/20/95 13.625000
04/21/95 13.250000
04/24/95 13.375000
04/25/95 13.250000
04/26/95 13.250000
04/27/95 13.375000
04/28/95 13.750000
05/01/95 14.250000
05/02/95 14.125000
05/03/95 13.750000
05/04/95 14.000000
05/05/95 14.000000
05/08/95 13.500000
05/09/95 14.000000
05/10/95 14.000000
05/11/95 13.750000
05/12/95 13.875000
05/15/95 13.625000
05/16/95 14.500000
05/17/95 13.500000
05/18/95 13.250000
05/19/95 13.250000
05/23/95 13.500000
05/24/95 13.750000
05/25/95 14.000000
05/26/95 13.250000
05/30/95 13.500000
05/31/95 13.750000
06/05/95 14.500000
06/06/95 14.250000
06/07/95 14.000000
06/08/95 15.000000
06/09/95 14.500000
06/12/95 14.625000
06/13/95 14.625000
06/14/95 14.625000
06/15/95 14.750000
06/16/95 14.750000
06/19/95 14.750000
06/20/95 14.750000
06/21/95 15.000000
06/22/95 14.750000
06/23/95 14.625000
06/26/95 14.500000
06/27/95 14.500000
06/28/95 14.625000
06/29/95 14.687500
07/03/95 14.625000
07/05/95 14.625000
07/06/95 14.375000
07/07/95 14.500000
07/10/95 15.000000
07/11/95 14.250000
07/12/95 14.125000
07/13/95 13.625000
07/14/95 14.500000
07/17/95 14.875000
07/18/95 14.375000
07/19/95 14.000000
07/20/95 14.375000
07/21/95 14.375000
07/24/95 14.375000
07/25/95 14.250000
07/26/95 14.750000
07/27/95 14.625000
07/28/95 14.500000
07/31/95 14.250000
08/01/95 14.250000
08/02/95 14.500000
08/03/95 14.250000
08/04/95 14.250000
08/08/95 14.375000
08/09/95 14.000000
08/10/95 14.125000
08/11/95 14.500000
08/14/95 14.500000
08/15/95 14.625000
08/16/95 15.000000
08/17/95 14.500000
08/21/95 14.375000
08/22/95 14.375000
08/23/95 14.625000
08/24/95 14.250000
08/25/95 14.375000
08/28/95 14.250000
08/29/95 14.250000
08/30/95 14.500000
08/31/95 14.125000
09/01/95 14.125000
09/05/95 13.125000
09/06/95 13.750000
09/07/95 13.375000
09/08/95 13.750000
09/11/95 13.500000
09/12/95 13.875000
09/13/95 13.750000
09/14/95 13.625000
09/15/95 13.625000
09/18/95 13.750000
09/19/95 14.000000
09/21/95 14.000000
09/25/95 13.625000
09/26/95 13.625000
09/27/95 13.000000
09/28/95 13.000000
09/29/95 12.750000
10/02/95 13.375000
10/03/95 12.500000
10/04/95 12.375000
10/05/95 12.250000
10/06/95 12.625000
10/09/95 13.750000
10/10/95 13.375000
10/11/95 14.125000
10/12/95 14.500000
10/13/95 14.625000
10/16/95 14.500000
10/17/95 14.875000
10/18/95 14.375000
10/19/95 14.250000
10/20/95 14.000000
10/23/95 14.500000
10/24/95 14.250000
10/25/95 13.250000
10/26/95 14.000000
10/27/95 14.125000
10/30/95 14.687500
10/31/95 14.500000
11/01/95 14.250000
11/02/95 14.687500
11/03/95 14.875000
11/06/95 14.500000
11/07/95 14.750000
11/08/95 14.375000
11/09/95 14.750000
- -------------------------------------------------------------------------------
PaineWebber Incorporated 24
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
STOCK PRICE AND VOLUME PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES PERFORMANCE VERSUS COMPARATIVE COMPANIES
[GRAPH APPEARS HERE]
DATE STOCK PRICE
11/09/93 15.500000
11/10/93 15.250000
11/11/93 14.880000
11/12/93 14.880000
11/15/93 15.000000
11/16/93 14.750000
11/17/93 14.750000
11/18/93 15.000000
11/19/93 14.630000
11/22/93 14.250000
11/23/93 14.380000
11/24/93 14.250000
11/29/93 14.380000
11/30/93 15.000000
12/01/93 15.250000
12/02/93 15.500000
12/03/93 15.500000
12/06/93 15.250000
12/07/93 15.250000
12/08/93 15.250000
12/09/93 15.125000
12/10/93 15.375000
12/13/93 14.750000
12/14/93 14.250000
12/15/93 14.250000
12/16/93 14.375000
12/17/93 14.125000
12/20/93 13.875000
12/21/93 14.750000
12/22/93 14.500000
12/23/93 14.875000
12/27/93 14.875000
12/28/93 14.625000
12/30/93 14.250000
12/31/93 14.250000
01/01/94 14.250000
01/03/94 14.125000
01/04/94 13.875000
01/05/94 14.000000
01/06/94 14.500000
01/07/94 14.000000
01/10/94 14.000000
01/11/94 13.750000
01/12/94 14.000000
01/13/94 13.500000
01/14/94 13.750000
01/17/94 13.500000
01/18/94 13.000000
01/19/94 13.750000
01/20/94 13.375000
01/21/94 13.500000
01/24/94 13.500000
01/25/94 13.125000
01/26/94 13.125000
01/27/94 13.125000
01/28/94 13.625000
01/31/94 14.250000
02/01/94 15.750000
02/02/94 15.500000
02/03/94 15.750000
02/04/94 15.500000
02/07/94 15.375000
02/08/94 15.000000
02/09/94 14.750000
02/10/94 14.500000
02/11/94 14.500000
02/14/94 14.750000
02/15/94 14.500000
02/16/94 14.500000
02/17/94 14.750000
02/18/94 14.375000
02/22/94 14.375000
02/23/94 14.750000
02/24/94 14.750000
02/25/94 13.750000
02/28/94 13.625000
03/01/94 14.250000
03/02/94 13.375000
03/03/94 14.000000
03/04/94 14.000000
03/07/94 14.625000
03/08/94 14.875000
03/09/94 14.875000
03/10/94 14.500000
03/11/94 14.875000
03/14/94 14.625000
03/15/94 15.250000
03/16/94 14.875000
03/17/94 14.750000
03/18/94 15.250000
03/21/94 15.375000
03/22/94 15.750000
03/23/94 15.750000
03/24/94 15.500000
03/25/94 16.000000
03/28/94 16.000000
03/29/94 15.000000
03/30/94 15.500000
03/31/94 14.750000
04/04/94 13.125000
04/05/94 14.750000
04/06/94 14.000000
04/07/94 14.375000
04/08/94 13.875000
04/11/94 13.750000
04/12/94 14.250000
04/13/94 14.000000
04/14/94 15.000000
04/15/94 15.375000
04/18/94 14.750000
04/19/94 14.500000
04/20/94 14.625000
04/21/94 15.000000
04/22/94 15.375000
04/25/94 15.000000
04/26/94 15.500000
04/28/94 15.500000
04/29/94 15.125000
05/02/94 15.500000
05/03/94 15.750000
05/04/94 15.750000
05/05/94 15.500000
05/06/94 15.000000
05/09/94 15.750000
05/10/94 15.250000
05/11/94 14.750000
05/12/94 14.625000
05/13/94 14.625000
05/17/94 15.250000
05/18/94 15.500000
05/19/94 16.000000
05/20/94 15.500000
05/23/94 15.750000
05/24/94 15.250000
05/25/94 15.000000
05/26/94 15.000000
05/27/94 15.000000
05/31/94 15.000000
06/01/94 15.250000
06/02/94 15.375000
06/03/94 15.250000
06/06/94 15.750000
06/07/94 15.625000
06/08/94 15.625000
06/09/94 16.000000
06/10/94 15.500000
06/13/94 15.500000
06/14/94 15.750000
06/15/94 16.125000
06/16/94 16.375000
06/17/94 16.750000
06/20/94 15.875000
06/21/94 16.250000
06/22/94 15.750000
06/23/94 15.750000
06/24/94 15.250000
06/27/94 16.000000
06/28/94 16.250000
06/29/94 16.250000
06/30/94 15.500000
07/01/94 15.750000
07/05/94 15.250000
07/06/94 14.750000
07/07/94 14.750000
07/08/94 15.250000
07/11/94 15.000000
07/12/94 15.500000
07/13/94 15.630000
07/14/94 15.750000
07/15/94 15.750000
07/18/94 15.000000
07/19/94 16.250000
07/20/94 15.630000
07/21/94 15.630000
07/22/94 16.250000
07/25/94 15.750000
07/26/94 15.880000
07/27/94 15.750000
07/28/94 15.750000
07/29/94 15.750000
08/01/94 15.750000
08/02/94 15.500000
08/03/94 15.630000
08/04/94 15.630000
08/05/94 15.437500
08/08/94 15.000000
08/09/94 15.000000
08/10/94 15.750000
08/11/94 15.000000
08/12/94 15.630000
08/15/94 15.130000
08/16/94 15.630000
08/17/94 15.250000
08/18/94 15.500000
08/19/94 16.000000
08/22/94 15.880000
08/23/94 15.750000
08/24/94 15.380000
08/25/94 15.750000
08/26/94 15.380000
08/29/94 14.880000
08/30/94 15.750000
08/31/94 15.750000
09/01/94 15.880000
09/02/94 16.500000
09/06/94 16.500000
09/07/94 16.500000
09/08/94 15.750000
09/09/94 16.000000
09/12/94 15.750000
09/13/94 15.500000
09/14/94 16.250000
09/15/94 15.750000
09/16/94 16.000000
09/19/94 15.250000
09/20/94 15.250000
09/21/94 16.000000
09/22/94 16.000000
09/23/94 16.000000
09/26/94 15.750000
09/27/94 15.750000
09/28/94 15.500000
09/29/94 15.630000
09/30/94 16.000000
10/03/94 15.500000
10/04/94 15.750000
10/05/94 15.500000
10/06/94 15.500000
10/07/94 16.250000
10/10/94 16.250000
10/11/94 17.000000
10/12/94 17.250000
10/13/94 16.750000
10/14/94 16.625000
10/17/94 16.250000
10/18/94 16.250000
10/19/94 16.625000
10/20/94 16.437500
10/21/94 16.875000
10/24/94 16.625000
10/25/94 16.750000
10/26/94 16.750000
10/27/94 16.750000
10/28/94 16.375000
10/31/94 16.500000
11/01/94 17.000000
11/02/94 17.250000
11/03/94 16.500000
11/04/94 16.000000
11/07/94 16.625000
11/08/94 16.125000
11/09/94 16.500000
11/10/94 15.500000
11/11/94 16.000000
11/14/94 16.000000
11/15/94 15.750000
11/16/94 16.000000
11/17/94 16.250000
11/18/94 15.875000
11/21/94 15.875000
11/22/94 15.875000
11/23/94 16.000000
11/25/94 15.875000
11/28/94 15.875000
11/29/94 16.000000
11/30/94 16.250000
12/01/94 16.000000
12/02/94 16.000000
12/05/94 17.187500
12/06/94 17.125000
12/07/94 17.125000
12/08/94 16.750000
12/09/94 16.500000
12/12/94 16.625000
12/13/94 16.750000
12/14/94 16.250000
12/15/94 16.062500
12/16/94 15.750000
12/20/94 16.375000
12/21/94 16.250000
12/22/94 16.125000
12/23/94 16.000000
12/27/94 15.750000
12/28/94 15.750000
12/29/94 15.250000
12/30/94 15.250000
01/01/95 15.250000
01/03/95 15.750000
01/04/95 16.250000
01/05/95 15.875000
01/06/95 16.000000
01/09/95 15.875000
01/10/95 15.625000
01/11/95 15.875000
01/12/95 15.500000
01/13/95 15.625000
01/16/95 15.500000
01/17/95 15.625000
01/18/95 15.625000
01/19/95 15.500000
01/20/95 15.375000
01/23/95 16.625000
01/24/95 15.250000
01/25/95 15.625000
01/26/95 15.500000
01/27/95 15.562500
01/30/95 15.375000
01/31/95 15.625000
02/01/95 15.750000
02/02/95 15.500000
02/03/95 15.625000
02/06/95 15.937500
02/07/95 15.750000
02/08/95 14.250000
02/09/95 14.375000
02/10/95 14.625000
02/13/95 14.125000
02/14/95 13.750000
02/15/95 13.875000
02/16/95 13.937500
02/17/95 14.000000
02/21/95 13.625000
02/22/95 13.625000
02/23/95 14.000000
02/24/95 14.000000
02/27/95 13.375000
02/28/95 13.250000
03/01/95 13.500000
03/02/95 13.750000
03/03/95 13.625000
03/06/95 13.750000
03/07/95 13.500000
03/08/95 14.000000
03/09/95 14.125000
03/10/95 14.625000
03/13/95 14.375000
03/14/95 14.375000
03/15/95 14.500000
03/16/95 14.250000
03/17/95 14.375000
03/20/95 13.875000
03/21/95 14.125000
03/22/95 13.875000
03/23/95 13.500000
03/24/95 13.250000
03/27/95 13.250000
03/28/95 13.250000
03/29/95 13.250000
03/30/95 13.000000
03/31/95 13.000000
04/03/95 13.000000
04/04/95 13.375000
04/05/95 13.875000
04/06/95 13.750000
04/07/95 13.625000
04/10/95 13.750000
04/11/95 13.750000
04/12/95 13.875000
04/13/95 13.750000
04/17/95 13.750000
04/18/95 13.250000
04/19/95 13.625000
04/20/95 13.625000
04/21/95 13.250000
04/24/95 13.375000
04/25/95 13.250000
04/26/95 13.250000
04/27/95 13.375000
04/28/95 13.750000
05/01/95 14.250000
05/02/95 14.125000
05/03/95 13.750000
05/04/95 14.000000
05/05/95 14.000000
05/08/95 13.500000
05/09/95 14.000000
05/10/95 14.000000
05/11/95 13.750000
05/12/95 13.875000
05/15/95 13.625000
05/16/95 14.500000
05/17/95 13.500000
05/18/95 13.250000
05/19/95 13.250000
05/23/95 13.500000
05/24/95 13.750000
05/25/95 14.000000
05/26/95 13.250000
05/30/95 13.500000
05/31/95 13.750000
06/05/95 14.500000
06/06/95 14.250000
06/07/95 14.000000
06/08/95 15.000000
06/09/95 14.500000
06/12/95 14.625000
06/13/95 14.625000
06/14/95 14.625000
06/15/95 14.750000
06/16/95 14.750000
06/19/95 14.750000
06/20/95 14.750000
06/21/95 15.000000
06/22/95 14.750000
06/23/95 14.625000
06/26/95 14.500000
06/27/95 14.500000
06/28/95 14.625000
06/29/95 14.687500
07/03/95 14.625000
07/05/95 14.625000
07/06/95 14.375000
07/07/95 14.500000
07/10/95 15.000000
07/11/95 14.250000
07/12/95 14.125000
07/13/95 13.625000
07/14/95 14.500000
07/17/95 14.875000
07/18/95 14.375000
07/19/95 14.000000
07/20/95 14.375000
07/21/95 14.375000
07/24/95 14.375000
07/25/95 14.250000
07/26/95 14.750000
07/27/95 14.625000
07/28/95 14.500000
07/31/95 14.250000
08/01/95 14.250000
08/02/95 14.500000
08/03/95 14.250000
08/04/95 14.250000
08/08/95 14.375000
08/09/95 14.000000
08/10/95 14.125000
08/11/95 14.500000
08/14/95 14.500000
08/15/95 14.625000
08/16/95 15.000000
08/17/95 14.500000
08/21/95 14.375000
08/22/95 14.375000
08/23/95 14.625000
08/24/95 14.250000
08/25/95 14.375000
08/28/95 14.250000
08/29/95 14.250000
08/30/95 14.500000
08/31/95 14.125000
09/01/95 14.125000
09/05/95 13.125000
09/06/95 13.750000
09/07/95 13.375000
09/08/95 13.750000
09/11/95 13.500000
09/12/95 13.875000
09/13/95 13.750000
09/14/95 13.625000
09/15/95 13.625000
09/18/95 13.750000
09/19/95 14.000000
09/21/95 14.000000
09/25/95 13.625000
09/26/95 13.625000
09/27/95 13.000000
09/28/95 13.000000
09/29/95 12.750000
10/02/95 13.375000
10/03/95 12.500000
10/04/95 12.375000
10/05/95 12.250000
10/06/95 12.625000
10/09/95 13.750000
10/10/95 13.375000
10/11/95 14.125000
10/12/95 14.500000
10/13/95 14.625000
10/16/95 14.500000
10/17/95 14.875000
10/18/95 14.375000
10/19/95 14.250000
10/20/95 14.000000
10/23/95 14.500000
10/24/95 14.250000
10/25/95 13.250000
10/26/95 14.000000
10/27/95 14.125000
10/30/95 14.687500
10/31/95 14.500000
11/01/95 14.250000
11/02/95 14.687500
11/03/95 14.875000
11/06/95 14.500000
11/07/95 14.750000
11/08/95 14.375000
11/09/95 14.750000
COMPARATIVE COMPANIES [MEASUREMENT POINTS WERE NOT PROVIDED IN THE EDGAR
FILING WERE NOT PROVIDED BY PAINEWEBBER INCORPORATED
BUT WERE TAKEN FROM A VISUAL INSPECTION OF THE LINE
GRAPH.]
APPROXIMATE HIGH/LOW RANGES
MEASURING PT. 100%
HIGH LOW
11/09/93 TO 03/10/94 113% 97%
03/10/94 TO 07/10/94 103% 94%
07/10/94 TO 11/09/94 104% 96%
11/09/94 TO 03/10/95 108% 102%
03/10/95 TO 07/10/95 114% 102%
07/10/95 TO 11/09/95 115% 86%
Note: Comparative Companies Index is comprised of Bandag, Brad Ragan,
Republic Automotive and TBC.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 25
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
STOCK PRICE AND VOLUME PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES VOLUME TRADED ANALYSIS -- LATEST 12 MONTHS
[GRAPH APPEARS HERE]
STOCK PRICE AND VOLUME PERFORMANCE
BIG O TIRES VOLUME TRADED ANALYSIS - LATEST 12 MONTHS
DATE VOLUME
11/09/94 4,850
11/10/94 19,650
11/11/94 15,630
11/14/94 6,325
11/15/94 12,200
11/16/94 3,500
11/17/94 13,000
11/18/94 6,800
11/21/94 400
11/22/94 10,620
11/23/94 10,573
11/25/94 10,565
11/28/94 160
11/29/94 16,300
11/30/94 11,967
12/01/94 3,500
12/02/94 28,550
15/05/94 82,344
12/06/94 44,650
12/07/94 16,884
12/08/94 50,467
12/09/94 11,920
12/12/94 10,353
12/13/94 8,238
12/14/94 3,050
12/15/94 33,521
12/16/94 16,500
12/19/94 2,500
12/20/94 40,102
12/21/94 43,400
12/22/94 18,215
12/23/94 3,300
12/27/94 1,940
12/28/94 2,300
12/29/94 2,200
12/30/94 2,725
01/03/95 18,000
01/04/95 20,950
01/05/95 5,372
01/06/95 25,914
01/09/95 7,485
01/10/95 8,800
01/11/95 20,000
01/12/95 2,600
01/13/95 1,700
01/16/95 100
01/17/95 10,890
01/18/95 500
01/19/95 9,185
01/20/95 4,781
01/23/95 1,650
01/24/95 9,769
01/25/95 2,850
01/26/95 10,400
01/27/95 5,600
01/30/95 6,150
01/31/95 2,600
02/01/95 200
02/02/95 1,475
02/03/95 19,300
02/06/95 15,290
02/07/95 28,275
02/08/95 84,645
02/09/95 54,896
02/10/95 11,120
02/13/95 9,331
02/14/95 12,310
02/15/95 9,730
02/16/95 39,758
02/17/95 25,875
02/21/95 13,700
02/22/95 9,900
02/23/95 13,419
02/24/95 1,000
02/27/95 8,300
02/28/95 11,842
03/01/95 5,700
03/02/95 3,900
03/03/95 7,850
03/06/95 13,050
03/07/95 22,771
03/08/95 22,000
03/09/95 14,024
03/10/95 22,018
03/13/95 2,941
03/14/95 8,467
03/15/95 11,041
03/16/95 2,000
03/17/95 3,100
03/20/95 7,124
03/21/95 7,800
03/22/95 13,500
03/23/95 4,200
03/24/95 11,721
03/27/95 4,139
03/28/95 4,100
03/29/95 7,677
03/30/95 1,250
03/31/95 5,500
04/03/95 1,850
04/04/95 22,250
04/05/95 8,700
04/06/95 2,924
04/07/95 28,174
04/10/95 8,500
04/11/95 5,740
04/12/95 7,400
04/13/95 14,200
04/17/95 9,245
04/18/95 10,441
04/19/95 2,200
04/20/95 1,400
04/21/95 1,500
04/24/95 14,040
04/25/95 1,800
04/26/95 2,000
04/27/95 5,543
04/28/95 7,110
05/01/95 17,100
05/02/95 7,000
05/03/95 2,350
05/04/95 1,250
05/05/95 6,740
05/08/95 4,517
05/09/95 10,700
05/10/95 5,100
05/11/95 1,400
05/12/95 6,000
05/15/95 5,000
05/16/95 19,075
05/17/95 11,600
05/18/95 10,250
05/19/95 8,700
05/23/95 9,500
05/24/95 1,000
05/25/95 10,000
05/26/95 1,100
05/30/95 5,800
05/31/95 14,800
06/05/95 35,601
06/06/95 3,900
06/07/95 3,975
06/08/95 73,793
06/09/95 17,800
06/12/95 5,100
06/13/95 1,300
06/14/95 200
06/15/95 400
06/16/95 774
06/19/95 1,000
06/20/95 7,700
06/21/95 3,200
06/22/95 7,600
06/23/95 5,000
06/26/95 2,600
06/27/95 6,220
06/28/95 800
06/29/95 3,800
07/03/95 300
07/05/95 2,100
07/06/95 4,300
07/07/95 9,070
07/10/95 1,120
07/11/95 2,900
07/12/95 14,400
07/13/95 3,092
07/14/95 69,600
07/17/95 2,200
07/18/95 15,858
07/19/95 5,000
07/20/95 10,800
07/21/95 5,100
07/24/95 4,000
07/25/95 47,300
07/26/95 12,800
07/27/95 4,000
07/28/95 4,800
07/31/95 26,700
08/01/95 1,300
08/02/95 3,600
08/03/95 14,610
08/04/95 600
08/08/95 2,445
08/09/95 9,400
08/10/95 1,600
08/11/95 1,000
08/14/95 3,130
08/15/95 5,325
08/16/95 37,744
08/17/95 14,999
08/21/95 4,750
08/22/95 3,800
08/23/95 6,105
08/24/95 6,217
08/25/95 6,045
08/28/95 3,790
08/29/95 6,850
08/30/95 10,400
08/31/95 7,300
09/01/95 24,200
09/05/95 15,400
09/06/95 9,800
09/07/95 24,500
09/08/95 2,915
09/11/95 13,800
09/12/95 20,863
09/13/95 6,750
09/14/95 500
09/15/95 14,900
09/18/95 15,200
09/19/95 1,200
09/21/95 6,800
09/25/95 300
09/26/95 2,000
09/27/95 33,258
09/28/95 24,100
09/29/95 2,675
10/02/95 11,469
10/03/95 9,575
10/04/95 8,600
10/05/95 15,680
10/06/95 39,410
10/09/95 18,850
10/10/95 30,208
10/11/95 29,850
10/12/95 29,700
10/13/95 8,099
10/16/95 30,100
10/17/95 8,759
10/18/95 8,652
10/19/95 11,569
10/20/95 2,700
10/23/95 23,510
10/24/95 19,000
10/25/95 11,630
10/26/95 45,400
10/27/95 13,251
10/30/95 12,500
10/31/95 1,100
11/01/95 3,159
11/02/95 30,890
11/03/95 8,800
11/06/95 2,775
11/07/95 2,924
11/08/95 2,625
11/09/95 1,100
/ / Average Volume Over Latest 12 Months: 10,898
/ / Cumulative Shares Traded Over Latest 12 Months: 2,855,300 or
approximately 86.1% of the Total Outstanding Shares as of
August 10, 1995
- -------------------------------------------------------------------------------
PaineWebber Incorporated 26
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
STOCK PRICE AND VOLUME PERFORMANCE
--------------------------------------------------------------------
BIG O TIRES SHARES TRADED AT SPECIFIED PRICES -- LATEST 12 MONTHS
/ / Average daily closing price during latest 12 months: $14.48
/ / Average daily closing price from June 16, 1992 to March 1, 1993
(1): $11.90
[GRAPH]
STOCK PRICE AND VOLUME PERFORMANCE
[BAR GRAPH APPEARS HERE]
BIG O TIRES SHARES TRADED AT SPECIFIC PRICES - LATEST 12 MONTHS
- - AVERAGE DAILY CLOSING PRICE DURING LATEST 12 MONTHS: $14.48
- - AVERAGE DAILY CLOSING PRICE FROM JUNE 16, 1992 TO MARCH 1, 1993(1): $11.90
STOCK PRICE VOLUME PERFORMANCE
7 - 8(2) 5.5%
8 - 9(2) 4.3%
9 - 10(2) 5.0%
10 - 11(2) 5.2%
11 - 12(2) 13.3%
12 - 13(2) 28.9%
12 - 13(3) 2.7%
13 - 14(2) 29.0%
13 - 14(3) 24.7%
14 - 15(2) 8.8%
14 - 15(3) 40.5%
15 - 16(3) 13.9%
16 - 17(3) 13.2%
17 - 18(3) 5.0%
(2) DATE FOR THE PERIOD JUNE 16, 1992 TO MARCH 1, 1993
(3) LATEST TWELVE MONTHS DATES
(1) REPRESENTS TIME FROM LIST AVAILABLE DAY OF STOCK PRICE INFORMATION TO DAY
WHEN BALBOA INVESTMENTS FIRST REPORTED ABOVE A 5%
INTEREST IN BIG O.
__________________________
(1) Represents time from first available day of stock price information to day
when Balboa Investments first reported above a 5% interest in Big O.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 27
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
PART IV -- VALUATION SUMMARY
- -------------------------------------------------------------------------------
PaineWebber Incorporated 28
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
- -------------------------------------------------------------------------------
IMPLIED VALUATION
SUMMARY
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) EQUITY VALUE EQUITY VALUE PER SHARE
- -------------------------------------------------------------------------------
<S> <C> <C>
Market Value
Current (As of 11/10/95) $48.9 $14.75
52-Week High 57.6 17.38
52-Week Low 39.8 12.00
Book Value 37.2 11.20
Discounted Cash Flow Valuation (1) $53.0 - $72.0 $14.95 - $20.32
Comparative Company Valuation (2)(3)
No Premium 42.1 - 57.9 11.87 - 16.32
30% Premium (4) 54.7 - 75.2 15.43 - 21.22
- -------------------------------------------------------------------------------
</TABLE>
______________________
(1) Based on the Big O Tires Financial Forecast. Assumes terminal EBITDA
multiples of 6.0x to 7.0x, and discount rates of 13.0% to 17.0%.
(2) Based on median comparative company multiples using recent closing stock
prices (as of November 9, 1995) and latest twelve month operating results
for the Big O Tires Comparative Companies. Excludes not meaningful numbers.
(3) Based on latest twelve months operating results for Big O tires for the
period ended September 30, 1995, and for Comparative Companies for the
latest twelve months ending June 30, 1995.
(4) Premium based on retail industry (as defined by SDC) transactions from
January 1, 1990 to November 3, 1995.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 29
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
- -------------------------------------------------------------------------------
COMPARATIVE REVIEW
RELATIVE MULTIPLE ANALYSIS
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
($ IN MILLIONS) BIG O TIRES MULTIPLES(1) BIG O TIRES COMPARATIVE COMPANIES(2)
BIG O TIRES -------------------------------------------------------------
LTM RESULTS $14.75 MEDIAN RANGE
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $141.2 0.45x 0.46x 0.41x - 1.68x
EBITDA 9.9 6.4 6.5 6.2 - 6.5
EBIT 8.2 7.7 8.0 7.0 - 8.6
Net Income 3.9 12.5 11.5 8.2 - 25.1
Book Value 37.2 1.32 1.51 1.07 - 2.88
1995E EPS (3) 1.24 11.9x 10.2x 8.2x - 12.9x
1996E EPS (3) 1.57 9.4 7.6 7.2 - 11.5
- -----------------------------------------------------------------------------------------
</TABLE>
RELATIVE MARGIN AND GROWTH ANALYSIS
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
BIG O TIRES COMPARATIVE COMPANIES(2)
------------------------------------
BIG O TIRES(1) MEDIAN RANGE
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Latest Four Quarters
EBITDA Margin 7.0% 7.0% (2.4%) - 25.9%
EBIT Margin 5.8 5.7 (3.1) - 21.0
Net Margin 2.8 3.4 1.2 - 14.2
Net Income Growth Rates
Historical (4) 15.7% 22.8% (3.2%) - 102.3%
Projected (5) 12.0 12.0 10.0 - 20.0
- -------------------------------------------------------------------------------
</TABLE>
____________________
(1) Based on latest closing price (11/10/95) and latest twelve months operating
results for Big O for the period ended September 30, 1995.
(2) Based on recent closing stock prices and latest twelve month operating
results for the Comparative Company Index. Excludes negative and not
meaningful numbers.
(3) Based on Company projections for Big O median calendarized IBES estimates
for the Comparative Companies as of Octoer, 1995. Excludes unusual and
extraordinary items.
(4) Compound annual growth rates from 1994 to the latest twelve months for
Big O and the Comparative Companies.
(5) Median projected 5-year compound annual earnings per share growth for Big O
and the Comparative Companies as estimated by IBES.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 30
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
- -------------------------------------------------------------------------------
COMPARATIVE PUBLIC COMPANY ANALYSIS
TOTAL VALUE/LTM REVENUES TOTAL VALUE/LTM EBITDA
TOTAL VALUE/LTM EBIT EQUITY VALUE/FY 1995E NET INCOME
VALUATION SUMMARY
COMPARATIVE PUBLIC COMPANY ANALYSIS
[FOUR BAR GRAPHS APPEAR HERE]
MEASUREMENT PT-
TOTAL VALUE/LTM REVENUES (MEDIAN: 0.46X)
COMPANY
BIG O (1) 0.51X
BANDAG 1.68X
BRAD RAGAN 0.44X
REPUBLIC AUTOMOTIVE 0.48X
TBC 0.41X
TOTAL VALUE/LTM EBITDA (MEDIAN: 6.5X)
BIG O 7.2X
BANDAG 6.5X
BRAD RAGAN NMF
REPUBLIC AUTOMOTIVE 6.5X
TBC 6.2X
TOTAL VALUE/LTMEBIT (MEDIAN: 8.0X)
BIG O (1) 8.7X
BANDAG 8.0X
BRAD RAGAN NMF
REPUBLIC AUTOMOTIVE 8.6X
TBC 7.0X
EQUITY VALUE/FY 1995E NET INCOME
COMPANY
BIG O (1) (2) 13.5X
BANDAG 12.9X
BRAD RAGAN NMF
REPUBLIC AUTOMOTIVE 10.2X
TBC 8.2X
(1) ASSUMING ACQUISITION PRICE OF $16.50 PER SHARE
(2) BASED ON COMPANY PROJECTIONS
____________________
(1) Assuming acquisition price of $16.50 per share.
(2) Based on Company projections.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 31
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
- -------------------------------------------------------------------------------
COMPARATIVE PUBLIC COMPANY ANALYSIS
SUMMARY FINANCIAL STATISTICS
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
($ IN MILLIONS) 3-YEAR 3-YEAR
LTM REVENUE LTM EBITDA LTM EBIT NET INCOME
COMPANY REVENUES GROWTH RATE EBITDA MARGIN EBIT MARGIN GROWTH RATE
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Bandag $712.0 4.9% $184.6 26.5% $149.7 21.0% 6.4%
Brad Ragan 239.4 4.7 (5.8) (2.6) (7.3) (3.1) 102.3
Republic Automotive 139.3 28.2 10.3 7.1 7.7 5.4 39.1
TBC Corp. 547.8 (1.6) 36.5 6.6 32.4 5.8 (3.2)
Average $412.5 9.1% $56.4 9.4% $45.6 7.3% 36.2%
BIG O TIRES $141.2 3.2% $9.9 7.0% $8.2 5.8% 15.7%
% ABOVE/(BELOW) AVERAGE (65.8)% (64.8)% (82.4)% (25.5)% (82.0)% (20.5)% (56.6)%
- ----------------------------------------------------------------------------------------------
</TABLE>
BIG O'S OPERATING STATISTICS DO NOT COMPARE FAVORABLY WITH THE INDUSTRY
AVERAGES
- -------------------------------------------------------------------------------
PaineWebber Incorporated 32
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
COMPARATIVE PUBLIC COMPANY ANALYSIS
- --------------------------------------------------------------------------------------------------------------------------------
($ IN MILLIONS) MARKET CAPITALIZATION/ MARKET VALUE
--------------------------- ---------------------------------------------
LTM
REVENUE EBITDA EBIT NET INCOME 1995 EPS 1996 EPS BOOK VALUE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Median Multiples of Selected Comparative Companies 0.46x 6.5x 8.0x 11.5x 10.2x 7.6x 1.51
Big O Results (1) $141.2 $ 9.9 $ 8.2 $ 3.9 $ 1.24 1.57 $ 37.2
------ ------ ------ ------ ------ ------ ------
Total Implied Value before Adjustments $ 65.0 $ 64.0 $ 65.9 $ 45.1 $12.59 $11.87 $ 56.1
Corporate Adjustments
- ---------------------
Less: Total Debt (2) $(19.0) $(19.0) $(19.0) - - - -
Plus: Cash and Due from Parent (2) 4.3 4.3 4.3 - - - -
------ ------ ------ ------ ------ ------ ------
Implied Value of Equity before Stock Option Proceeds $ 50.3 $ 49.3 $ 51.2 - - - -
- ----------------------------------------------------
Plus: Cash from Exercise of Stock Options 1.8 1.8 1.8 1.8 - - 1.8
------ ------ ------ ------ ------ ------ ------
Implied Value of Equity after Stock Option Proceeds $ 52.0 $ 51.0 $ 53.0 $ 46.9 $ 44.6 $ 42.1 $ 57.9
- --------------------------------------------------- ------ ------ ------ ------ ------ ------ ------
IMPLIED VALUE OF EQUITY PER SHARE OUTSTANDING (3) $15.14 $14.84 $15.42 $13.59 $ NM $ NM $16.90
IMPLIED VALUE OF EQUITY PER FULLY DILUTED SHARE
OUTSTANDING (4) 14.68 14.39 14.94 13.22 12.59 11.87 16.32
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SHARE INFORMATION
- ---------------------------------
BIG O TIRES
- ---------------------------------
<S> <C>
Primary 3.318
Options 0.226
Option Exercise Price $7.88
Fully Diluted 3.544
- ---------------------------------
</TABLE>
<TABLE>
<CAPTION>
IMPLIED MARKET MULTIPLE VALUATION
- ---------------------------------
PER SHARE VALUE
- ---------------------------------
<S> <C>
Valuation Range $11.87 - $16.32
- ---------------------------------
</TABLE>
- -----------------
Note: Numbers may not add due to rounding.
(1) Based on LTM results as of September 30, 1995.
(2) Balance sheet data as of September 30, 1995.
(3) Based on 3,317,840 common shares outstanding as of September 10,1995.
Excludes proceeds from options.
(4) Based on 3,317,840 common shares outstanding as of September 10, 1995,
and 226,347 shares issuable upon exercise of options at an average
exercise price of $7.88 per share. Includes proceeds from the exercise
of options.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 33
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
VALUATION SUMMARY
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
PREMIUMS PAID ANALYSIS
- --------------------------------------------------------------------------------------------------------------------
ONE DAY PRIOR ONE WEEK PRIOR FOUR WEEK PRIOR
DATE STOCK PRICE STOCK PRICE STOCK PRICE
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Based on Offer from Mgmt./Dealers (1) 12/5/94 $16.00 $15.88 $16.63
Implied Premium to $16.50 Offer 3.1% 3.9% (0.8)%
Based on Balboa Inv. Shareholder Proposal (2) 12/21/93 $13.88 $14.25 $14.38
Implied Premium to $16.50 Offer 18.9% 15.8% 14.8%
Based on Balboa Inv. Initial 13-D Filing (3) 3/1/93 $13.50 $13.00 $13.50
Implied Premium to $16.50 Offer 22.2% 26.9% 22.2%
Historical Medium Premium Paid (4) 25.7% 28.7% 33.7%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------------
(1) All prices are based on closing stock prices prior to December 5, 1994,
the date of the first public announcement of an offer to purchase
Big O Tires.
(2) Based on closing stock prices prior to December 21, 1993, which represents
the date Balboa Investments delivered a proposal to the Company
recommending that the Company hire an investment banking firm to explore
alternatives for enhancing shareholder value including, among other
options, the sale of the Company.
(3) Based on closing stock prices prior to March 1, 1993, the date Balboa
Investments filed its initial 13-D.
(4) Based on retail industry (as defined by SDC) transactions from
January 1, 1990 to November 3, 1995.
- -------------------------------------------------------------------------------
PaineWebber Incorporated 34
<PAGE>
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
PART V -- SUPPLEMENTAL INFORMATION
- -------------------------------------------------------------------------------
PaineWebber Incorporated 35
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
EXHIBIT I -- COMPARATIVE COMPANY ANALYSIS
- ---------------------------------------------------------------------------
PaineWebber Incorporated 36
<PAGE>
- --------------------------------------------------------------------------
Big O Tires, Inc.
- ---------------------------------------------------------------------------
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
INTEREST EXPENSE SCHEDULE
INTEREST EXPENSE
Existing Debt RATE
Senior Notes 8.71% 697 697 697 647 547 448
Long Term Debt (IN) 8.75% 125 119 115 111 107 103
Long Term Debt
(Kelly Springfield)6.25% 228 147 72 10 (13) (13)
Other Senior Debt 9.60% 36 0 0 0 0 0
AT&T LTD 10.00% 41 41 41 41 41 41
Prepayment
Penalties --- 0 0 0 0 0 0
Revolving
Credit Fac. 8.75% 348 0 0 0 0 0
----- --- --- --- --- --- ---
Total Existing Debt
Interest Expense 1,475 1,003 924 810 683 579
Acquisition
Financing
Senior Debt 0.0% 0 0 0 0 0 0
Sub Debt 0.0% 0 0 0 0 0 0
----- --- --- --- --- --- ---
TOTAL INTEREST
EXPENSE $1,475 $1,003 $924 $810 $683 $579
Income on Cash 0.0% 0 0 0 0 0 0
Income on Bridge
Notes Rec 0.0% 0 0 0 0 0 0
Income on Notes Rec 0.0% 0 0 0 0 0 0
----- --- --- --- --- --- ---
0.0% 0 0 0 0 0 0
<PAGE>
COMPARATIVE COMPANY ANALYSIS
----------------------------------------------------------------------
DESCRIPTION OF COMPARATIVE COMPANIES
----------------------------------------------------------------------
BANDAG, INC. Bandag is engaged in the production and sale of precured
tread rubber and equipment used by its franchisees for the
retreading of tires for light commercial trucks, buses,
industrial equipment, off-the-road equipment and passenger
cars. The Corporation and its licensees have 1,363
franchisees worldwide, with 37% located in the United States
and 63% internationally. The majority of Bandag's
franchisees are independent operators of full service tire
distributorships. Bandag's revenues primarily come from the
sale of retread material and equipment to its franchisees.
BRAD RAGAN INC. In its commercial operations, the company supplies retreaded
and new tire services for virtually every kind of vehicular
application, through 48 commercial tire centers in 20
states. Brad Ragan is the largest U.S. producer of
retreaded off-the-road tires for heavy equipment used in
mining, heavy construction, quarrying, agriculture and
forest product industries. The company's over-the-highway
tires are sold primarily to the medium-duty commercial truck
market. In addition, the company's commercial division
sells tires for smaller vehicles, including light-duty
trucks and automobiles, representing about 5.6% of the
division's sales.
- ----------------------------------------------------------------------
- ---------------------------------------------------------------------------
PaineWebber Incorporated 37
<PAGE>
- ---------------------------------------------------------------------------
Big O Tires, Inc.
- ---------------------------------------------------------------------------
COMPARATIVE COMPANY ANALYSIS
----------------------------------------------------------------------
DESCRIPTION OF COMPARATIVE COMPANIES (CONT'D)
----------------------------------------------------------------------
REPUBLIC AUTOMOTIVE Republic Automotive Parts, Inc. distributes a PARTS,
INC. wide range of replacement parts (other than body
and crash parts, windshields and tires) for
substantially all mass-produced domestic makes and
models of automobiles manufactured within the past 15
years. The company also distributes a number of
replacement parts for heavy-duty trucks, snowmobiles,
motorcycles, farm equipment and marine equipment, and
other similar types of machinery.
Most of the company's sales are derived from the
distribution of more than 100,000 different auto parts
through 21 distribution centers, which sell to 91
mostly leased jobber stores and more than 3,000
independent stores. Jobber stores sell to service
stations, car and truck dealers, auto repair shops,
fleet operators, leasing companies, mass merchandisers
and directly to the public.
TBC CORP. TBC Corporation is one of the largest U.S. distributors
of products for the automotive replacement markets.
Its lines of tires, tubes, custom wheels, batteries,
shock absorbers, brake parts, filters and other items,
which are made by others to company specifications, are
marketed under the company's own brand names. Through
its distributors and their customers, TBC estimates
that its products are sold by over 20,000 retail
outlets.
- ---------------------------------------------------------------------------
- ---------------------------------------------------------------------------
PaineWebber Incorporated 38
<PAGE>
<PAGE>
COMPARATIVE COMPANY ANALYSIS
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
BIG O BANDAG BRAD REPUBLIC TBC
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS) TIRES INC. RAGAN AUTOMOTIVE CORP.
--------- ---------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Ticker BIGO BDG BRD RAUT TBCC
Exchange NASDAQ NYSE AMEX NASDAQ NASDAQ
Fiscal Year Ended 12/31/94 12/31/94 12/31/94 12/31/94 12/31/94
Stock Price As Of 11/09/95 $14.75 $50.50 $32.50 $13.00 $6.88
Market Value of Common Equity $48.9 $1,270.7 $71.2 $43.1 $170.4
Book Value of Preferred Stock 0.0 0.0 0.0 0.0 0.0
Total Debt 19.0 9.3 35.1 20.3 56.7
Less: Cash & Equivalents (4.3) (81.4) (0.2) (3.0) 0.0
------- --------- ------- ------- -------
Total Value $63.7 $1,198.6 $106.1 $66.5 $227.1
======= ========= ======= ======= ======= _______________
VALUATION MULTIPLES BASED ON MEAN MEDIAN
LATEST TWELVE MONTHS (LTM) RESULTS ------ --------
Total Value/Revenues 0.45 x 1.68 x 0.44 x 0.48 x 0.41 x 0.75 x 0.46 x
Total Value/EBITDA 6.4 6.5 NMF 6.5 6.2 6.4 6.5
Total Value/EBIT 7.7 8.0 NMF 8.6 7.0 7.9 8.0
Total Value/Total Assets 0.9 2.0 0.8 0.8 1.1 1.2 1.0
Total Value/Total Capitalization 1.2 3.3 1.3 1.2 1.4 1.8 1.3
MV Equity/LTM Net Income 12.5 x 12.5 x 25.1 x 10.5 x 8.2 x 14.1 x 11.5 x
Price/1995E EPS 11.9 12.9 NA 10.2 8.2 10.4 10.2
Price/1996E EPS 9.4 11.5 NA 7.6 7.2 8.7 7.6
MV Equity/Cash Flow from Operations 8.8 9.3 19.3 6.5 6.6 10.4 8.0
MV Equity/Book Value 1.32 2.9 1.4 1.1 1.6 1.7 1.5
_________________________________________________________________
OPERATING RESULTS FOR LTM ENDED |9/30/95 6/30/95 6/30/95 6/30/95 6/30/95 |
|________________________________________________________________|
Revenues $141.2 $712.0 $239.4 $139.3 $547.8
EBITDA $9.9 184.6 (5.8) 10.3 36.5
EBIT $8.2 149.7 (7.3) 7.7 32.4
Net Income $3.9 101.4 2.8 4.1 20.7
Cash Flow from Operations $5.6 136.3 3.7 6.7 25.7
MARGINS
Gross Margin 22.0 % 41.4 % 30.5 % 37.4 % 9.1 % 29.6 % 33.9 %
EBITDA Margin 7.0 25.9 (2.4) 7.4 6.7 9.4 7.0
EBIT Margin 5.8 21.0 (3.1) 5.5 5.9 7.4 5.7
Net Income Margin 2.8 14.2 1.2 2.9 3.8 5.5 3.4
BALANCE SHEET DATA
Net Debt/Book Capitalization 28.4 % NMF % 41.3 % 30.0 % 34.5 % 35.3 % 34.5 %
Total Debt/Book Equity 51.2 2.1 70.6 50.4 52.7 43.9 51.5
Total Assets $69.8 $592.1 $132.3 $80.1 $208.1 _______________
Total Book Capitalization (net cash) 51.9 368.7 84.6 57.7 164.2
Common Equity 37.2 440.9 49.7 40.3 107.5
Common Shares Outstanding (MM) 3.3 25.2 2.2 3.3 24.8
SHARE PRICE RANGE FOR LTM
High $17.38 $60.50 $35.00 $16.75 $11.75
Low $12.00 $47.50 $29.00 $12.75 $6.88
Current Price as % Below High 15.1 % 16.5 % 7.1 % 22.4 41.5 %
Current Price as % Above Low 22.9 6.3 12.1 2.0 0.0
</TABLE>
- -------------------------------------------------------------------------------
Mergers & Acquisitions Department PaineWebber Incorporated
COMPARATIVE COMPANY ANALYSIS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BIG O BANDAG BRAD REPUBLIC TBC
TIRES INC. RAGAN AUTOMOTIVE CORP.
--------- --------- --------- ------------ ---------
<C> <C> <C> <C> <C> <C> <C> <C>
PERFORMANCE VARIABLES FOR PERIOD ENDING 12/31/94 12/31/94 12/31/94 12/31/94 12/31/94
___________________
MEAN MEDIAN
---- ------
3 YEAR GROWTH RATE
Revenues 3.2 % 4.9 % 4.7 % 28.2 (1.6)% 9.0 % 4.8 %
EBITDA 11.9 7.3 NMF 44.1 NMF 25.7 25.7
EBIT 15.3 5.9 NMF 44.9 NMF 25.4 25.4
Net Income 15.7 6.4 102.3 39.1 (3.2) 36.2 22.8
3 YEAR GROSS MARGINS
Latest FY 23.6 % 42.0 % 30.6 % 36.6 9.4 % 29.7 % 33.6 %
Latest FY-1 22.5 40.3 29.8 38.3 9.6 29.5 34.1
Latest FY-2 23.1 42.7 30.4 37.8 9.9 30.2 34.1
3 YEAR EBITDA MARGINS
Latest FY 7.5 % 26.5 % (2.6)% 7.1 6.6 % 9.4 % 6.9 %
Latest FY-1 6.0 25.3 (3.4) 6.2 6.6 8.7 6.4
Latest FY-2 6.4 25.3 (4.4) 5.7 6.6 8.3 6.1
3 YEAR EBIT MARGINS
Latest FY 6.2 % 21.0 % (3.1)% 5.4 5.8 % 7.3 % 5.6 %
Latest FY-1 4.7 19.7 (3.9) 4.8 5.9 6.6 5.4
Latest FY-2 5.0 20.6 (5.1) 4.2 6.0 6.4 5.1
3 YEAR S,G&A AS % OF REVENUE
Latest FY 17.4 % 21.0 % 33.8 % 31.2 3.6 % 22.4 % 26.1 %
Latest FY-1 17.7 20.6 33.8 33.4 3.7 22.9 27.0
Latest FY-2 18.1 22.1 35.4 33.6 3.9 23.8 27.9
___________________
FOOTNOTES
- -----------------------
BIG O TIRES
Comparable Company Analysis does not include market value of stock options.
September 30, 1995 stub period excludes real estate sales and expenses and
excludes shareholder proposal expense, LV consolidation expense and loss on
closure of stores totaling $1,599,000. A 42.0% tax rate is assumed.
September 30, 1994 stub period excludes extraordinary items totaling
$1,256,000. A 42.0% tax rate is assumed.
1994 data excludes extraordinary items totaling $1,780,000. A 42.0% tax rate
is assumed.
1993 data excludes extraordinary items totaling $1,317,000. A 42.0% tax rate
is assumed.
BANDAG INC.
Assumes other income is interest/investment income
REPUBLIC AUTOMOTIVE
Excludes accounting change of $0.9mm in 1993
Excludes a $2.6 million ($1.57 million after-tax) provision for a damage award.
TBC CORPORATION
1994 Data excludes a $2.5 million ($1.5 million after-tax) charge for
supplemental retirement benefits.
</TABLE>
- -------------------------------------------------------------------------------
Mergers & Acquisitions Department
<PAGE>
- ------------------------------------------------------------------------------
Big O Tires, Inc.
- ------------------------------------------------------------------------------
EXHIBIT II -- DISCOUNTED CASH FLOW
ANALYSIS
- ------------------------------------------------------------------------------
PaineWebber Incorporated 39
<PAGE>
PROJECT SNOW
DISCOUNTED CASH FLOW ANALYSIS
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL PROJECTED (A)
INCOME STATEMENT DATA ------------------------ ------------------------------------------
1993 1994 1995E 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $123.0 $127.7 $136.5 $141.4 $149.5 $157.4 $164.9 $172.5
Cost of Sales (b) 97.8 100.7 109.3 113.3 119.9 126.4 132.7 138.9
Selling, General and Administrative 18.0 17.5 17.1 16.5 16.8 17.2 17.5 17.9
Other Expense 1.0 1.8 0.0 0.0 0.0 0.0 0.0 0.0
Lease Income 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
------ ------ ------ ------ ------ ------ ------ ------
EBITDA 6.1 7.8 10.1 11.6 12.7 13.8 14.7 15.7
Depreciation 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1
Amortization 0.4 0.5 0.4 0.4 0.3 0.3 0.3 0.3
------ ------ ------ ------ ------ ------ ------ ------
EBIT $ 4.5 $ 6.1 $ 8.5 $ 10.1 $ 11.3 $ 12.5 $ 13.3 $ 14.4
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
HISTORICAL PROJECTED (A)
PERCENTAGE ANALYSIS ------------------------ ------------------------------------------
1993 1994 1995E 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales Growth 2.6% 3.8% 6.9% 3.5% 5.7% 5.3% 4.8% 4.6%
Cost of Sales 79.6% 78.8% 80.1% 80.1% 80.2% 80.3% 80.5% 80.5%
Selling, General and Administrative 14.7% 13.7% 12.5% 11.7% 11.3% 10.9% 10.6% 10.4%
Other Expense 0.8% 1.4% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Lease Income 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
------ ------ ------ ------ ------ ------ ------ ------
EBITDA 4.9% 6.1% 7.4% 8.2% 8.5% 8.8% 8.9% 9.1%
Depreciation 0.9% 1.0% 0.9% 0.8% 0.7% 0.7% 0.7% 0.6%
Amortization 0.3% 0.4% 0.3% 0.3% 0.2% 0.2% 0.2% 0.2%
------ ------ ------ ------ ------ ------ ------ ------
EBIT 3.7% 4.8% 6.2% 7.2% 7.6% 7.9% 8.1% 8.3%
====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
____________________
(a) Projections based on the fiscal 1995 to 2000 financial forecast for Big O
provided by Big O management (the "Big O Financial Forecast").
<PAGE>
PROJECT SNOW
DISCOUNTED CASH FLOW ANALYSIS
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
HISTORICAL PROJECTED (A)
FREE CASH FLOW ANALYSIS ------------------------ ------------------------------------------
1993 1994 1995E 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SOURCES OF CASH
EBIAT (b) $ 2.6 $ 3.5 $ 4.9 $ 5.9 $ 6.6 $ 7.2 $ 7.7 $ 8.3
Depreciation 1.2 1.2 1.2 1.1 1.1 1.1 1.1 1.1
Amortization 0.4 0.5 0.4 0.4 0.3 0.3 0.3 0.3
------ ------ ------ ------ ------ ------ ------ ------
Total Sources 4.1 5.2 6.5 7.3 8.0 8.6 9.1 9.7
USES OF CASH
Non-Cash Working Capital Changes (4.0) 9.4 (1.2) (2.2) 0.9 0.8 0.8 0.8
Capital Expenditures 1.0 1.9 9.4 1.8 0.9 1.0 1.0 1.0
Proceeds From Sale of Properties (0.0) (1.2) (4.5) 0.0 0.0 0.0 0.0 0.0
------ ------ ------ ------ ------ ------ ------ ------
Total Uses (3.0) 10.1 3.6 (0.4) 1.7 1.8 1.7 1.7
------ ------ ------ ------ ------ ------ ------ ------
Free Cash Flow $ 7.2 $ (4.9) $ 2.9 $ 7.7 $ 6.2 $ 6.8 $ 7.3 $ 7.9
====== ====== ====== ====== ====== ====== ====== ======
OTHER DATA
Change in W/Capital / Change in Sales (44.1%) 7.3% (13.9%) (45.5%) 10.6% 10.6% 10.6% 10.4%
Capital Expenditures -- % Sales 0.8% 1.5% 6.8% 1.3% 0.6% 0.6% 0.6% 0.6%
D&A -- % Capital Expenditures 112.4% 64.1% 12.8% 61.1% 123.7% 113.6% 112.8% 112.0%
</TABLE>
___________________________
(a) Projections based on the fiscal 1995 to 2000 financial forecast for Big O
provided by Big O management (the "Big O Financial Forecast").
(b) Based on the effective income tax rate for each respective year as per the
Big O Financial Forecast.
<PAGE>
PROJECT SNOW
DISCOUNTED CASH FLOW ANALYSIS
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Discount Rate 13.0% 15.0% 17.0%
------------------------ ------------------------ ------------------------
Terminal EBITDA Multiple 6.0x 6.5x 7.0x 6.0x 6.5x 7.0x 6.0x 6.5x 7.0x
------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000 EBITDA $ 15.7 $ 15.7 $ 15.7 $ 15.7 $ 15.7 $ 15.7 $ 15.7 $ 15.7 $ 15.7
Terminal EBITDA Multiple 6.0x 6.5x 7.0x 6.0x 6.5x 7.0x 6.0x 6.5x 7.0x
------ ------ ------ ------ ------ ------ ------ ------ ------
Terminal Enterprise Value $ 94.4 $102.2 $110.1 $ 94.4 $102.2 $110.1 $ 94.4 $102.2 $110.1
====== ====== ====== ====== ====== ====== ====== ====== ======
Present Value of Terminal Value (a) $ 51.2 $ 55.5 $ 59.8 $ 46.9 $ 50.8 $ 54.7 $ 43.0 $ 46.6 $ 50.2
Present Value of Free Cash Flow (b) 25.2 25.2 25.2 24.0 24.0 24.0 22.9 22.9 22.9
------ ------ ------ ------ ------ ------ ------ ------ ------
Present Value of Enterprise Value 76.5 80.7 85.0 71.0 74.9 78.8 66.0 69.6 73.1
Less: Total Debt (c) (19.0) (19.0) (19.0) (19.0) (19.0) (19.0) (19.0) (19.0) (19.0)
Plus: Cash and Investments (c) 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3 4.3
Plus: Cash From Exercise of Options (d) 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8
------ ------ ------ ------ ------ ------ ------ ------ ------
Equity Value $ 63.5 $ 67.7 $ 72.0 $ 58.0 $ 61.9 $ 65.8 $ 53.0 $ 56.6 $ 60.2
====== ====== ====== ====== ====== ====== ====== ====== ======
Equity Value Per Share
Primary (e) $18.59 $19.88 $21.17 $16.93 $18.11 $19.29 $15.43 $16.51 $17.60
Fully-Diluted 17.91 19.11 20.32 16.36 17.46 18.56 14.95 15.96 16.98
Common Shares Outstanding
Primary (f) 3.318 3.318 3.318 3.318 3.318 3.318 3.318 3.318 3.318
Fully-Diluted (g) 3.544 3.544 3.544 3.544 3.544 3.544 3.544 3.544 3.544
</TABLE>
_________________________
(a) Discounted back 5 years to January 1, 1996 at the specified discount rates.
(b) Year 1 cash flow discounted back 12 months, year 2 cash flow discounted
back 2 years ... year 5 cash flow discounted back 5 years.
(c) Balance sheet data is as of September 30, 1995.
(d) Based on 226,347 options outstanding at an average exercise price of $7.88
per share as of December 31, 1994.
(e) Excludes proceeds from the exercise of options.
(f) The number of common shares outstanding as of September 10, 1995
(g) Based on 3,317,840 common shares outstanding and 226,347 options outstanding
at an average exercise price of $7.88 per share.
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
Exhibit III -- Premiums Paid Analysis
- -------------------------------------------------------------------------------
PaineWebber Incorporated 40
<PAGE>
PREMIUMS PAID ANALYSIS(1)
- -------------------------------------------------------------------------------
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
OFFER PRICE PREMIUM TO STOCK PRICE
TOTAL ------------------------------------
DATE ENTERPRISE OFFER PRICE 1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR
ANNOUNCED TARGET NAME ACQUIROR NAME VALUE PER SHARE TO ANNCMNT TO ANNCMNT TO ANNCMNT
- --------- ----------- ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
01/08/90 Royal International Optical IPCO Corp $84.2 $12.25 27.2% 34.2% 32.4%
03/29/90 Conston Corp Undisclosed Acquiror 24.4 1.50 20.0% 70.5% 50.0%
05/11/90 Sprouse-Reitz Stores SR Partners Inc NA 17.00 70.0% 94.3% 54.5%
06/21/90 EPIC Health Group Inc Diagnostek Inc 16.7 1.04 65.1% 85.7% 108.0%
07/02/90 Kay Jewelers Inc Ratners Group PLC 456.5 17.00 22.5% 29.5% 33.3%
08/10/90 Webster Clothes Inc Edison Brothers Stores Inc 34.1 6.00 200.0% 242.9% 237.1%
09/25/90 Sunbelt Nursery Group Inc Pier 1 Imports Inc(Intermark) 56.6 12.00 37.1% 35.1% 41.2%
10/30/90 Shirt Shed Inc Signal Apparel Co 48.8 3.34 27.0% 33.6% 11.3%
10/30/90 Neiman-Marcus Group Inc General Cinema Corp 1,270.8 14.40 28.0% 26.5% 26.5%
11/06/90 Warehouse Club Inc Great Atlantic & Pacific Tea 35.8 1.50 70.5% 70.5% 50.0%
12/18/90 Fabricland Inc House of Fabrics Inc 75.3 17.25 72.5% 46.8% 97.1%
04/18/91 Inacomp Computer Centers Inc ValCom Inc 137.5 9.97 13.9% 17.3% 32.9%
05/13/91 BizMart Inc Intelligent Electronics Inc 171.4 16.50 24.5% 46.7% 51.7%
05/30/91 Businessland Inc JWP Inc 303.2 1.00 -33.3% -38.7% -50.0%
07/24/91 Businessland Inc ComputerLand Corp 326.3 1.00 -33.3% -38.7% -50.0%
07/29/92 Fretter Inc Investor Group 103.4 4.00 77.8% 100.0% 52.1%
08/31/92 Diagnostek Inc Medco Containment Services Inc 454.4 18.67 79.9% 86.7% 60.5%
02/02/93 Express Cash Intl Corp Cash America International Inc 11.4 4.60 31.4% 26.7% 93.3%
02/12/93 Home Shopping Network Inc Liberty Media Corp 898.4 8.50 1.4% 11.4% 17.2%
06/16/93 Price Co Costco Wholesale Corp 2,224.7 36.21 12.3% 23.8% 21.7%
07/27/93 Sunbelt Nursery Group Inc General Host Corp 40.9 5.00 -7.1% -13.0% -25.9%
08/20/93 Dart Group Corp Investor NA 80.00 -9.6% -4.2% -3.6%
08/20/93 Dart Group Corp Investor NA 94.65 6.9% 13.4% 14.0%
11/08/93 Weyco Group Inc Investor Group 46.8 34.00 11.5% 11.5% 23.6%
03/16/94 All For A Dollar Inc Pharmhouse 16.3 1.77 -8.8% -11.5% 38.3%
04/04/94 Hook-SupeRx Inc Revco DS Inc(Anac Holding) 618.1 13.75 50.6% 48.6% 66.7%
07/25/94 Nature Food Centres Inc General Nutrition Companies 66.6 12.00 21.5% 37.1% 50.0%
08/25/94 Babbages Software Etc Stores Inc 58.8 11.70 -0.4% 8.8% 11.4%
08/26/94 Griffith Consumers Co Griffith Holdings Inc 84.5 23.00 53.3% 46.0% 61.4%
10/28/94 Younkers Inc Carson Pirie Scott & Co 222.9 19.00 20.6% 26.7% 0.0%
12/27/94 Perry Drug Stores Inc Rite Aid Corp 219.4 11.00 44.2% 44.2% 46.7%
02/07/95 Petstuff Inc PetSmart Inc 91.7 10.29 -6.5% 24.7% 11.2%
03/06/95 A Pea in the Pod Inc Mothers Work Inc 25.3 5.50 37.5% 83.3% 57.1%
03/27/95 Diagnostek Inc Value Health Inc(Warburg Pinc) 425.8 16.60 -10.3% -10.3% 7.9%
04/03/95 Buttrey Food and Drug Stores Undisclosed Acquiror 109.1 10.00 15.9% 19.3% 25.0%
04/20/95 Bruno's Inc Kohlberg Kravis Roberts & Co 966.6 12.00 28.9% 27.9% 33.3%
04/28/95 NuVision Inc American Vision Centers Inc 20.6 7.60 32.2% 38.2% 35.0%
05/03/95 Hills Stores Co Dickstein Partners Inc 772.2 27.00 30.9% 38.5% 35.8%
05/15/95 Random Access Inc Entex Information Svcs(JWP) 39.1 3.25 6.2% 27.0% 23.6%
</TABLE>
_______________
(1) Includes M&A transactions within the Retail Industry. The Retail Industry
(as defined by SDC) includes SIC Codes from 5211 to 5736 and from 5912
to 5999.
<PAGE>
PREMIUMS PAID ANALYSIS(1)
- -------------------------------------------------------------------------------
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
OFFER PRICE PREMIUM TO STOCK PRICE
TOTAL ------------------------------------
DATE ENTERPRISE OFFER PRICE 1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR
ANNOUNCED TARGET NAME ACQUIROR NAME VALUE PER SHARE TO ANNCMNT TO ANNCMNT TO ANNCMNT
- --------- ----------- ------------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
06/01/95 Hi-Lo Automotive Inc Chief Auto Parts(Trust Co of) 161.1 11.00 23.9% 27.5% 22.2%
06/14/95 Lillian Vernon Corp Freeman Spogli & Co 172.1 19.00 -5.6% -7.3% -8.4%
06/16/95 Sunshine Jr Stores Inc E-Z Serve Corp 29.5 12.00 60.0% 81.0% 54.8%
06/26/95 Super Rite Corp Richfood Holdings Inc 330.8 23.46 26.8% 26.8% 49.0%
07/27/95 Ben Franklin Retail Stores Inc Shareholders NA 4.00 -18.0% -20.0% -23.8%
08/07/95 Cosmetic Center Inc Perfumania Inc 63.2 13.00 50.6% 59.9% 73.3%
08/14/95 Broadway Stores Federated Department Stores 1,667.9 8.00 177.8% 390.8% 55.9%
08/14/95 National Convenience Stores Circle K Corp 198.0 20.00 45.5% 53.8% 61.6%
08/28/95 Medicine Shoppe International Cardinal Health Inc 345.3 45.00 16.1% 15.4% 29.5%
08/30/95 Syms Corp Investor Group 160.7 8.75 11.0% 9.4% 25.0%
09/08/95 Sunbelt Cos Inc Pelican Cos Inc 33.1 7.95 17.8% 13.6% 22.3%
09/19/95 Huffman Koos(SGH/JG Inds Inc) Home Furnishings(Breuners) 39.3 9.38 50.1% 39.0% 34.0%
10/23/95 Younkers Inc Proffitt's Inc 219.5 28.18 47.8% 57.6% 65.8%
All Transactions (57 Transactions)
----------------------------------
Mean 31.5% 42.5% 37.4%
Median 25.7% 28.7% 33.7%
----------------------------------
</TABLE>
Source: Securities Data Company, Inc.
_______________
(1) Includes M&A transactions within the Retail Industry. The Retail Industry
(as defined by SDC) includes SIC Codes from 5211 to 5736 and from 5912
to 5999.
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
--------------------------------------------------------------------
EXHIBIT IV -- MANAGEMENT FINANCIAL
FORECAST
- -------------------------------------------------------------------------------
PaineWebber Incorporated 41
<PAGE>
- -------------------------------------------------------------------------------
Big O Tires, Inc.
- -------------------------------------------------------------------------------
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- -------------------------------------------------------------------------------
Page 1
<TABLE>
<CAPTION>
SUMMARY STATISTICS
HISTORICAL PROJECTED
------------------------------ ---------------------------------------------------------------
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999 2000
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $127,678 $136,524 $141,363 $149,464 $157,395 $164,892 $172,506
EBITDA 7,624 6,058 7,774 7,878 11,584 12,745 13,844 14,716 15,731
EBIT 5,936 4,500 6,106 6,437 10,116 11,342 12,450 13,331 14,352
Total Interest 1,170 1,219 1,465 1,475 1,003 924 810 683 579
Net Interest 1,170 1,219 1,465 1,475 1,003 924 810 683 579
Net Income $ 2,783 $ 1,881 $ 2,691 $ 2,873 $ 5,276 $ 6,031 $ 6,733 $ 7,316 $ 7,967
Earnings Per Share $ 0.80 $ 0.55 $ 0.80 $ 0.86 $ 1.57 $ 1.79 $ 2.00 $ 2.17 $ 2.35
GROWTH/MARGIN ANALYSIS
Net Sales Growth 5.2% 2.6% 3.8% 6.9% 3.5% 5.7% 5.3% 4.8% 4.6%
Gross Margin 20.9% 20.4% 21.2% 19.9% 19.9% 19.8% 19.7% 19.5% 19.5%
EBITDA Margin 6.4% 4.9% 6.1% 5.8% 8.2% 8.5% 8.8% 8.9% 9.1%
EBIT Margin 5.0% 3.7% 4.8% 4.7% 7.2% 7.6% 7.9% 8.1% 8.3%
Net Income Margin 2.3% 1.5% 2.1% 2.1% 3.7% 4.0% 4.3% 4.4% 4.6%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 5.3x 5.3x 11.5x 13.8x 17.1x 21.6x 27.2x
EBITDA/Net Interest 6.5x 5.0x 5.3x 5.3x 11.5x 13.8x 17.1x 21.6x 27.2x
EBITDA-Cap Ex/Tot. Interest 5.9x 3.2x 4.0x -2.5x 9.7x 12.8x 15.9x 20.2x 25.5x
EBIT/Total Interest 5.1x 3.7x 4.2x 4.4x 10.1x 12.3x 15.4x 19.5x 24.8x
EBIT/Net Interest 5.1x 3.7x 4.2x 4.4x 10.1x 12.3x 15.4x 19.5x 24.8x
Total Debt/EBITDA 1.4x 2.3x 2.3x 1.6x 1.0x 0.8x 0.6x 0.5x 0.4x
Debt/Total Capitalization 30.3% 33.8% 0.0% 25.0% 20.8% 17.1% 12.8% 10.0% 0.0%
Debt/Equity 0.4x 0.5x 0.5x 0.3x 0.3x 0.2x 0.1x 0.1x 0.0x
STORE COUNT (END OF PERIOD)
Franchise Stores 344 362 374 384 407 430 450 470 490
Company Stores 10 8 4 4 4 4 4 4 4
Total Stores 354 370 378 388 411 434 454 474 494
</TABLE>
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PaineWebber Incorporated
<PAGE>
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Big O Tires, Inc.
- -------------------------------------------------------------------------------
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- -------------------------------------------------------------------------------
<TABLE> Page 2
<CAPTION>
HISTORICAL PROJECTED
------------------------------ ---------------------------------------------------------------
INCOME STATEMENT YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------ ---------------------------------------------------------------
(In thousands) 1992 1993 1994 1995 1996 1997 1998 1999 2000
------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $117,002 $127,827 $132,359 $139,965 $147,419 $154,456 $161,598
Incremental Retail Sales 1,816 3,238 3,487 1,245 1,245 1,245 1,245 1,245 1,245
Franchise Fee Income 5,856 6,116 6,772 7,072 7,373 7,853 8,330 8,789 9,261
O Advertising 470 381 417 379 386 402 402 402 402
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 127,678 136,524 141,363 149,464 157,395 164,892 172,506
Cost of Goods Sold(1) 94,720 97,829 100,660 109,342 113,279 119,889 126,385 132,666 138,915
-------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 27,018 27,182 28,084 29,575 31,011 32,226 33,591
Selling Gen. & Admin 17,455 18,035 17,464 17,108 16,500 16,830 17,167 17,510 17,860
Depreciation 1,120 1,168 1,215 1,060 1,108 1,094 1,085 1,077 1,069
Amort. of Financing Costs 0 0 0 0 0 0 0 0 0
Goodwill Amortization 0 0 0 0 0 0 0 0 0
Other Amortization 568 390 453 381 360 310 309 309 309
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(1) 19,143 19,593 19,132 18,549 17,968 18,234 18,561 18,896 19,238
Operating Income 5,936 5,538 7,886 8,633 10,116 11,342 12,450 13,331 14,352
Lease (Income) -- 10% 0 0 0 0 0 0 0 0 0
Other Expense(2) 0 1,038 1,780 2,196 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- ------- -------
EBIT 5,936 4,500 6,106 6,437 10,116 11,342 12,450 13,331 14,352
Interest Expense
Existing Debt 1,170 1,219 1,465 1,475 1,003 924 810 683 579
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,219 1,465 1,475 1,003 924 810 683 579
Interest Income 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,219 1,465 1,475 1,003 924 810 683 579
Earnings Before Taxes 4,766 3,281 4,641 4,962 9,113 10,417 11,640 12,648 13,773
Income Taxes 1,983 1,400 1,950 2,089 3,837 4,386 4,908 5,332 5,807
-------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income 2,783 1,881 2,691 2,873 5,276 6,031 6,733 7,316 7,967
Net Income to Common $ 2,783 $ 1,881 $ 2,691 $ 2,873 $ 5,276 $ 6,031 $ 6,733 $ 7,316 $7,967
======== ======== ======== ======= ======= ======= ======= ======= ======
Earnings Per Share
Actual $ 0.00 $ 0.55 $ 0.80 $ 0.84 $ 1.57 $ 1.79 $ 2.00 $ 2.17 $ 2.35
Excl. One-Time Items $ 0.73 $ 1.11 $ 1.24
Weighted Average Shares 3,497 3,410 3,348 3,346 3,354 3,362 3,370 3,378 3,386
</TABLE>
__________________
(1) All freight expense is in COGS.
(2) Other expense in 1995 includes real estate revenues and costs,
shareholder proposal expense, warehouse consolidation expense, and
loss on retail stores.
- -------------------------------------------------------------------------------
PaineWebber Incorporated
<PAGE>
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Big O Tires, Inc.
- -------------------------------------------------------------------------------
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- -------------------------------------------------------------------------------
<TABLE> Page 3
<CAPTION>
BALANCE SHEET HISTORICAL PROJECTED
------------------------------ --------------------------------------------------------------
(in thousands) YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
------------------------------ --------------------------------------------------------------
ASSETS 1992 1993 1994 1995 1996 1997 1998 1999 2000
------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Current Assets
Cash/Investments $ 1,590 $ 1,113 $ 4,882 $ 202 $ 6,075 $10,555 $14,972 $20,764 $27,197
Receivables 8,835 7,722 11,070 9,456 9,791 10,352 10,902 11,421 11,948
Inventory 15,348 11,748 14,219 16,320 15,104 15,985 16,851 17,689 18,522
Deferred Income Taxes 1,970 1,802 2,126 2,581 2,929 3,277 3,625 3,973 4,321
Other Current Assets 443 758 688 688 688 688 688 688 688
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Current Assets 28,186 23,143 32,985 29,246 34,587 40,857 47,038 54,534 62,676
Real Estate Retained 0 0 0 0 0 0 0 0 0
Real Estate CIP 0 0 2,169 0 0 0 0 0 0
Other Property and Equipment, net 12,166 13,153 9,862 15,828 16,533 16,323 16,193 16,071 15,957
------- ------- ------- ------- ------- ------- ------- ------- -------
Total PP&E 12,166 13,153 12,031 15,828 16,533 16,323 16,193 16,071 15,957
Investment/Other Asset 1,969 2,955 2,820 2,960 3,100 3,240 3,380 3,520 3,660
Invst in Oper JV 1,609 1,385 1,129 1,129 1,129 1,129 1,129 1,129 1,129
Invst in Dev JV 0 0 0 0 0 0 0 0 0
Invst in Conversions 0 0 0 0 0 0 0 0 0
Bridge Loan Receivable 0 0 0 0 0 0 0 0 0
Notes Receivable 4,915 6,616 3,926 3,726 3,526 3,326 3,126 2,926 2,726
Distribution Rights 8,834 9,355 9,077 8,828 8,549 8,271 7,995 7,719 7,443
Other Non Current Assets 0 0 0 0 0 0 0 0 0
Total Assets $57,679 $56,607 $61,968 $61,717 $67,424 $73,146 $78,861 $85,900 $93,592
======= ======= ======= ======= ======= ======= ======= ======= =======
Current Liabilities
Accounts Payable 5,085 3,613 650 2,217 2,297 2,431 2,563 2,690 2,817
Accrued Expenses 3,067 3,396 2,485 2,492 3,482 3,682 3,877 4,061 4,249
Warranty Reserve 2,654 3,254 3,850 4,450 5,050 5,650 6,250 6,850 7,450
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Current Liabilities 10,806 10,263 6,985 9,159 10,830 11,763 12,689 13,601 14,516
Deferred Income Taxes 500 38 0 0 0 0 0 0 0
ESOP Obligation 1,277 975 449 192 0 0 0 0 0
Other Long-term Liabilities 192 157 1,433 1,375 1,375 1,375 1,375 1,375 1,375
Existing Debt
Senior Notes 0 0 8,000 8,000 8,000 8,000 6,857 5,714 4,571
Long Term Debt(IN) 0 0 1,475 1,375 1,335 1,292 1,246 1,200 1,154
Long Term Debt (Kelly
Springfield) 440 5,600 4,355 2,945 1,745 545 (210) (210) (210)
Other Senior Debt 7,324 6,686 745 0 0 0 0 0 0
AT&T LTD 0 0 412 412 412 412 412 412 412
Revolving Credit Fac. 950 0 2,985 0 0 0 0 0 0
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Debt 10,714 13,686 17,972 12,732 11,492 10,249 8,305 7,116 5,927
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Liabilities 23,489 25,119 26,839 23,458 23,697 23,387 22,369 22,092 21,818
Common Stock 19,334 14,735 15,159 15,159 15,159 15,159 15,159 15,159 15,159
ESOP Obligation (1,277) (975) (449) (192) 0 0 0 0 0
Retained Earnings 16,133 17,728 20,419 23,292 28,569 34,600 41,333 48,648 56,615
------- ------- ------- ------- ------- ------- ------- ------- -------
Total Equity 34,190 31,488 35,129 38,259 43,728 49,759 56,492 63,807 71,774
Total Liab. and Equity $57,679 $56,607 $61,968 $61,717 $67,424 $73,146 $78,861 $85,900 $93,592
======= ======= ======= ======= ======= ======= ======= ======= =======
Debt/Total Cap. 23.9% 30.3% 33.8% 33.8% 25.0% 20.8% 17.1% 12.8% 10.0%
Debt/Equity 0.3x 0.4x 0.5x 0.5x 0.3x 0.3x 0.2x 0.1x 0.1x
</TABLE>
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PaineWebber Incorporated
<PAGE>
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- -----------------------------------------------------------------------------
Page 4
<TABLE>
<CAPTION>
CASH FLOW STATEMENT PROJECTED
---------------------------------------------------------
(In thousands) YEAR ENDED DECEMBER 31,
---------------------------------------------------------
1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
CASH FLOW FROM OPERATIONS
Net income $ 2,873 $ 5,276 $ 6,031 $ 6,733 $ 7,316 $ 7,967
Depreciation 1,060 1,108 1,094 1,085 1,077 1,069
Amortization 381 360 310 309 309 309
Increase Deferred Income/Taxes (58) 0 0 0 0 0
------- ------- ------- ------- ------- -------
Total Cash Flow From Operations 4,257 6,744 7,435 8,127 8,701 9,345
CHANGES IN WORKING CAPITAL
Accounts Receivable 1,614 (335) (561) (549) (519) (527)
Inventories (2,101) 1,216 (881) (866) (838) (833)
Deferred Income Taxes (455) (348) (348) (348) (348) (348)
Other Current Assets 0 0 0 0 0 0
Accounts Payable 1,567 80 134 132 127 127
Accrued Expenses 7 991 200 194 185 188
Warranty Reserve 600 600 600 600 600 600
------- ------- ------- ------- ------- -------
Total Changes in Working Capital 1,232 2,203 (857) (837) (793) (794)
CASH (USED FOR) GENERATED BY INVESTMENTS
Capital Expenditures (9,350) (1,813) (884) (955) (955) (955)
Proceeds From Sale of Properties 4,493 0 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV 0 0 0 0 0 0
Investment in Conversions 0 0 0 0 0 0
Real Estate Retained 0 0 0 0 0 0
Real Estate CIP 0 0 0 0 0 0
Bridge Loan 0 0 0 0 0 0
------- ------- ------- ------- ------- -------
Total Investments (4,857) (1,813) (884) (955) (955) (955)
CHANGES IN OTHER ASSETS
Investments/Other Assets (140) (140) (140) (140) (140) (140)
Notes Receivable 200 200 200 200 200 200
Distribution Rights 249 279 278 276 276 276
Note Pay Fees Expenses 0 0 0 0 0 0
Less: Amortization (381) (360) (310) (309) (309) (309)
------- ------- ------- ------- ------- -------
Total Other (72) (21) 28 27 27 27
Net From Operations 560 7,114 5,722 6,361 6,981 7,622
CASH FLOW FROM FINANCING ACTIVITIES
Existing Debt (5,240) (1,240) (1,243) (1,944) (1,189) (1,189)
Common Stock 0 0 0 0 0 0
------- ------- ------- ------- ------- -------
Net cash used in financing activities (5,240) (1,240) (1,243) (1,944) (1,189) (1,189)
Net Increase (Decrease) in Cash (4,680) 5,874 4,479 4,417 5,792 6,433
Cash, Beginning of Period 4,882 202 6,075 10,555 14,972 20,764
Cash Generated (Used) (4,680) 5,874 4,479 4,417 5,792 6,433
------- ------- ------- ------- ------- -------
Cash, End of Period $ 202 $ 6,075 $10,555 $14,972 $20,764 $27,197
</TABLE>
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PaineWebber Incorporated
<PAGE>
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- ------------------------------------------------------------------------------
Page 5
<TABLE>
<CAPTION>
DEBT SCHEDULE PROJECTED
(In thousands) ----------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING DEBT BALANCE
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 1,475 1,375 1,335 1,292 1,246 1,200
Long Term Debt (Kelly Springfield) 4,355 2,945 1,745 545 (210) (210)
Other Senior Debt 745 0 0 0 0 0
AT&T LTD 412 412 412 412 412 412
Revolving Credit Fac. 2,985 0 0 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
------ ------ ------ ------ ------ ------
Total Beginning Debt Balance 17,972 12,732 11,492 10,249 8,305 7,116
DEBT (REPAYMENT) BORROWINGS
Existing Debt
Senior Notes 0 0 0 (1,143) (1,143) (1,143)
Long Term Debt(IN) (100) (40) (43) (46) (46) (46)
Long Term Debt (Kelly Springfield) (1,410) (1,200) (1,200) (755) 0 0
Other Senior Debt (745) 0 0 0 0 0
AT&T LTD 0 0 0 0 0 0
Revolving Credit Fac. (2,985) 0 0 0 0 0
------ ------ ------ ------ ------ ------
Total Existing Debt Borrowing (Repayment) (5,240) (1,240) (1,243) (1,944) (1,189) (1,189)
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
------ ------ ------ ------ ------ ------
Total Borrowing (Repayment) (5,240) (1,240) (1,243) (1,944) (1,189) (1,189)
ENDING DEBT BALANCE
Existing Debt
Senior Notes 8,000 8,000 8,000 6,857 5,714 4,571
Long Term Debt(IN) 1,375 1,335 1,292 1,246 1,200 1,154
Long Term Debt (Kelly Springfield) 2,945 1,745 545 (210) (210) (210)
Other Senior Debt 0 0 0 0 0 0
AT&T LTD 412 412 412 412 412 412
Revolving Credit Fac. 0 0 0 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
------ ------ ------ ------ ------ ------
Total Ending Debt Balance 12,732 11,492 10,249 8,305 7,116 5,927
</TABLE>
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PaineWebber Incorporated
<PAGE>
PROJECT SNOW
MANAGEMENT FINANCIAL FORECAST
- ------------------------------------------------------------------------------
Page 6
<TABLE>
<CAPTION>
INTEREST EXPENSE SCHEDULE PROJECTED
---------------------------------------------------------
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
1995 1996 1997 1998 1999 2000
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt RATE
----
Senior Notes 8.71% 697 697 697 647 547 448
Long Term Debt(IN) 8.75% 125 119 115 111 107 103
Long Term Debt (Kelly Springfield) 6.25% 228 147 72 10 (13) (13)
Other Senior Debt 9.60% 36 0 0 0 0 0
AT&T LTD 10.00% 41 41 41 41 41 41
Prepayment Penalties -- 0 0 0 0 0 0
Revolving Credit Fac. 8.85% 348 0 0 0 0 0
------ ------ ---- ---- ---- ----
Total Existing Debt Interest Expense 1,475 1,003 924 810 683 579
Acquisition Financing
Senior Debt 0.0% 0 0 0 0 0 0
Sub Debt 0.0% 0 0 0 0 0 0
Total Interest Expense $1,475 $1,003 $924 $810 $683 $579
------ ------ ---- ---- ---- ----
Income on Cash 0.00% 0 0 0 0 0 0
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 0.00% 0 0 0 0 0 0
------ ------ ---- ---- ---- ----
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
</TABLE>
- ------------------------------------------------------------------------------
PaineWebber Incorporated
BIG O TIRES, INC.
RIGHTS AGREEMENT
BACKGROUND INFORMATION
APRIL 14, 1994
<PAGE>
TABLE OF CONTENTS
Part I Scope of Assignment
Part II Current Defense Profile
Part III Historical and Projected Summary Financial Statistics
Part IV Price/Earnings Multiple Analysis
Part V Selected Comparable Company Analysis
Part VI Determination of Exercise Price
Part VII Hypothetical Effect on Capitalization
Part VIII Selected Unsolicited Takeover Bids
Part IX Selected Redeemed Shareholders' Rights Plans
Part X Pricing and Trading Information on Selected Companies Adopting
Shareholders' Rights Plan
Part XI Summary of Selected Shareholders' Rights Plan
<PAGE>
PART I
SCOPE OF ASSIGNMENT
<PAGE>
SCOPE OF ASSIGNMENT
PaineWebber Incorporated has been retained by the Company in connection
with the possible adoption by the Company of a Shareholders' Rights Plan (the
"Plan"). PaineWebber will review and analyze the following in order to
determine an appropriate exercise price for a shareholder right under the Plan:
- Current Defense Profile
- Historical and Projected Summary Financial Statistics
- Historical Price/Earnings Multiple Analysis
- Selected Comparable Company Analysis
- Determination of Exercise Price
- Hypothetical Effect on Capitalization
- Selected Unsolicited Takeover Bids
- Selected Redeemed Shareholders' Rights Plan
- Pricing and Trading Information on Companies Adopting Shareholders'
Rights Plans
- Summary of Selected Shareholders' Rights Plan
<PAGE>
PART II
CURRENT DEFENSE PROFILE
<PAGE>
<TABLE>
<CAPTION>
YES NO COMMENTS
<S> <C> <C> <C>
1. Staggered Board of Directors X 3-15 directors as determined by the board, 3 equal classes
2. Excess Common X
3. Super Majority Voting Provision X
4. Blank Check Preferred X
5. 2 Classes Common X
6. Golden/Tin Parachute X
7. ESOP X ESOP owns 18.0% of Common Stock
8. Incorporated in Delaware X Nevada
9. No stockholder action by written consent X Articles and Bylaws silent; Permitted under Nevada law
10.Shareholders can call special X Upon the written request of one-tenth of all the shares entitled to
votes
11.Shareholders nominations or other proposals
must be provided in advance notice X For inclusion in company's 1994 proxy materials, proposals must have
been received by the company by December 24, 1993
12.Anti-Greenmail provision X
13.Fair Price provision X
</TABLE>
<PAGE>
PART III
HISTORICAL AND PROJECTED SUMMARY FINANCIAL STATISTICS
<PAGE>
HISTORICAL SUMMARY FINANCIAL STATISTICS(1)
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
For the Fiscal Years Ending
1988 1989 1990 1991 1992 1993
__________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
Net Sales $93.52 $108.23 $106.90 $113.84 $119.80 $122.96
Growth Rate -3.0% 15.7% -1.2% 6.5% 5.2% 2.6%
COGS 72.73 85.63 84.62 88.64 93.78 96.88
% of Sales 77.8% 79.1% 79.2% 77.9% 78.3% 78.8%
_____ _____ _____ _____ _____ _____
Gross Profit 20.79 22.60 22.28 25.20 26.02 26.08
Gross Margin 22.2% 20.9% 20.8% 22.1% 21.7% 21.2%
Operating Expenses 17.20 18.90 19.13 20.17 20.08 20.55
% of Sales 18.4% 17.5% 17.9% 17.7% 16.8% 16.7%
_____ _____ _____ _____ _____ _____
Operating Income 3.59 3.70 3.15 5.03 5.94 5.54
Operating Margin 3.8% 3.4% 3.0% 4.4% 5.0% 4.5%
Interest Expense/
(Income) 1.23 1.33 1.89 1.58 1.17 1.22
% of Sales 1.3% 1.2% 1.8% 1.4% 1.0% 1.0%
____ ____ ____ ____ ____ ____
Pre-Tax Income 2.36 2.38 1.26 3.45 4.77 4.32
% of Sales 2.5% 2.2% 1.2% 3.0% 4.0% 3.5%
Income Taxes 1.10 1.08 0.56 1.52 1.98 1.84
Tax Rate 46.4% 45.4% 44.1% 44.2% 41.6% 42.7%
_____ _____ _____ _____ _____ _____
Net Income $1.27 $1.30 $0.71 $1.93 $2.78 $2.47
_____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____
Earnings Per Share $0.43 $0.40 $0.20 $0.55 $0.80 $0.73
Shares Outstanding 2.94 3.22 3.50 3.51 3.50 3.41
</TABLE>
______________________________
(1) Data excludes extraordinary items and is adjusted for stock splits.
<PAGE>
PROJECTED SUMMARY FINANCIAL STATISTICS(1)
($ IN MILLIONS, EXPECT PER SHARE DATA)
<TABLE>
<CAPTION>
For the Fiscal Years Ending
____________________________________________________________________________________________________________________________________
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
____ ____ ____ ____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $132.43 $140.14 $150.04 $161.64 $171.86 $181.90 $191.95 $201.98 $212.49 $223.54 $235.16
Growth Rate 7.7% 5.8% 7.1% 7.7% 6.3% 5.8% 5.5% 5.2% 5.2% 5.2% 5.2%
COGS 103.84 110.91 120.58 130.72 138.51 146.54 154.33 162.01 169.99 178.83 188.13
% of Sales 78.4% 79.1% 80.4% 80.9% 80.6% 80.6% 80.4% 80.2% 80.0% 80.0% 80.0%
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Gross Profit 28.58 29.24 29.46 30.93 33.35 35.36 37.62 39.97 42.50 44.71 47.03
Gross Margin 21.6% 20.9% 19.6% 19.1% 19.4% 19.4% 19.6% 19.8% 20.0% 20.0% 20.0%
Operating Expenses 21.39 20.76 20.01 20.19 21.61 22.84 24.15 25.48 26.77 28.17 29.63
% of Sales 16.2% 14.8% 13.3% 12.5% 12.6% 12.6% 12.6% 12.6% 12.6% 12.6% 12.6%
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Operating Income 7.19 8.48 9.45 10.74 11.74 12.52 13.47 14.49 15.72 16.54 17.40
Operating Margin 5.4% 6.0% 6.3% 6.6% 6.8% 6.9% 7.0% 7.2% 7.4% 7.4% 7.4%
Interest Expense/(Income) 1.13 1.35 1.13 0.97 0.72 0.43 0.13 (0.24) (0.21) (0.22) (0.24)
% of Sales 0.9% 1.0% 0.8% 0.6% 0.4% 0.2% 0.1% -0.1% -0.1% -0.1% -0.1%
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Pre-Tax Income 6.06 7.13 8.32 9.77 11.03 12.08 13.34 14.73 15.94 16.77 17.64
% of Sales 4.6% 5.1% 5.5% 6.0% 6.4% 6.6% 6.9% 7.3% 7.5% 7.5% 7.5%
Income Taxes 2.55 3.00 3.50 4.11 4.65 5.11 5.65 6.25 6.76 7.11 7.48
Tax Rate 42.1% 42.1% 42.1% 42.1% 42.2% 42.3% 42.3% 42.4% 42.4% 42.4% 42.4%
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Net Income $3.51 $4.13 $4.82 $5.66 $6.37 $6.98 $7.69 $8.48 $9.18 $9.66 $10.16
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ ______
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____ ______
Earnings Per Share $1.01 $1.16 $1.33 $1.53 $1.69 $1.82 $1.97 $2.13 $2.31 $2.42 $2.55
% Growth 14.9% 14.7% 15.0% 10.5% 7.7% 8.2% 8.1% 8.2% 5.2% 5.2%
10-year avg. growth 9.8%
Number of Shares Outstanding 3.47 3.56 3.62 3.70 3.77 3.83 3.90 3.98 3.98 3.98 3.98
</TABLE>
___________________________
(1) Based on projections provided by the Company and modified by PaineWebber
Incorporated.
<PAGE>
PART IV
PRICE/EARNINGS MULTIPLE ANALYSIS
<PAGE>
PRICE/EARNINGS MULTIPLE ANALYSIS - TEN-YEAR AVERAGE P/E RATIOS
[LINE GRAPH APPEARS HERE - PAGE 9]
PaineWebber Incorporated
P/E Ratios
Weekly: April 2, 1984 to August 17, 1994
S&P (400
INDUSTRIALS) INDEX1 INDEX2
06-Apr-84 10.91 8.64 #N/A
13-Apr-84 11.05 8.63 #N/A
20-Apr-84 11.10 8.64 #N/A
27-Apr-84 11.26 8.66 #N/A
04-May-84 11.18 8.54 #N/A
11-May-84 11.13 8.60 #N/A
18-May-84 10.96 7.97 #N/A
25-May-84 10.67 7.72 #N/A
01-Jun-84 10.79 7.81 #N/A
08-Jun-84 10.95 7.87 #N/A
15-Jun-84 10.49 7.92 #N/A
22-Jun-84 10.90 7.77 #N/A
29-Jun-84 10.83 7.90 #N/A
06-Jul-84 9.92 7.66 #N/A
13-Jul-84 9.81 7.47 #N/A
20-Jul-84 9.73 7.42 #N/A
27-Jul-84 9.82 7.43 #N/A
03-Aug-84 10.55 7.86 #N/A
10-Aug-84 10.77 7.92 #N/A
17-Aug-84 10.68 7.80 #N/A
24-Aug-84 10.90 8.02 #N/A
31-Aug-84 10.85 7.93 #N/A
07-Sep-84 10.69 8.04 #N/A
14-Sep-84 10.94 7.91 #N/A
21-Sep-84 10.70 8.05 #N/A
28-Sep-84 10.73 8.34 #N/A
05-Oct-84 10.27 7.93 #N/A
12-Oct-84 10.34 7.93 #N/A
19-Oct-84 10.55 8.27 #N/A
26-Oct-84 10.41 8.47 #N/A
02-Nov-84 10.53 8.55 #N/A
09-Nov-84 10.54 8.68 #N/A
16-Nov-84 10.31 8.58 #N/A
23-Nov-84 10.48 8.38 #N/A
30-Nov-84 10.24 8.59 #N/A
07-Dec-84 10.16 8.23 #N/A
14-Dec-84 10.16 8.62 #N/A
21-Dec-84 10.34 8.81 #N/A
28-Dec-84 10.39 8.62 #N/A
04-Jan-85 10.14 8.08 #N/A
11-Jan-85 10.41 8.12 #N/A
18-Jan-85 10.64 8.38 #N/A
25-Jan-85 11.04 8.77 #N/A
01-Feb-85 11.12 8.94 #N/A
08-Feb-85 11.34 9.01 #N/A
15-Feb-85 11.27 9.24 #N/A
22-Feb-85 11.14 9.17 #N/A
01-Mar-85 11.41 9.53 #N/A
08-Mar-85 11.14 9.18 #N/A
15-Mar-85 10.95 9.09 #N/A
22-Mar-85 11.11 9.02 #N/A
29-Mar-85 11.22 9.21 #N/A
05-Apr-85 11.32 9.16 #N/A
12-Apr-85 11.41 9.26 #N/A
19-Apr-85 11.44 8.93 #N/A
26-Apr-85 11.48 8.93 #N/A
03-May-85 11.33 9.06 #N/A
10-May-85 11.57 9.15 #N/A
17-May-85 11.74 9.13 #N/A
24-May-85 11.84 9.30 #N/A
31-May-85 11.90 9.33 #N/A
07-Jun-85 11.88 9.33 #N/A
14-Jun-85 11.71 9.21 #N/A
21-Jun-85 11.85 8.00 #N/A
28-Jun-85 12.02 7.86 #N/A
05-Jul-85 12.99 8.31 #N/A
12-Jul-85 13.00 8.51 #N/A
19-Jul-85 13.21 8.90 #N/A
26-Jul-85 13.13 8.55 #N/A
02-Aug-85 13.05 8.55 #N/A
09-Aug-85 12.82 8.43 #N/A
16-Aug-85 12.66 8.35 #N/A
23-Aug-85 12.72 8.45 #N/A
30-Aug-85 12.83 8.45 #N/A
06-Sep-85 12.82 8.47 #N/A
13-Sep-85 12.49 8.21 #N/A
20-Sep-85 12.41 8.03 #N/A
27-Sep-85 12.40 8.31 #N/A
04-Oct-85 13.15 9.52 #N/A
11-Oct-85 13.21 9.79 #N/A
18-Oct-85 13.41 9.85 #N/A
25-Oct-85 13.42 9.97 #N/A
01-Nov-85 13.68 10.10 #N/A
08-Nov-85 13.81 10.42 #N/A
15-Nov-85 14.14 10.86 #N/A
22-Nov-85 14.41 10.86 #N/A
29-Nov-85 14.47 11.05 #N/A
06-Dec-85 14.52 11.51 #N/A
13-Dec-85 15.00 11.91 #N/A
20-Dec-85 15.05 11.89 #N/A
27-Dec-85 14.98 11.71 #N/A
03-Jan-86 15.35 13.13 #N/A
10-Jan-86 14.99 12.15 #N/A
17-Jan-86 15.15 12.52 #N/A
24-Jan-86 14.97 12.59 #N/A
31-Jan-86 15.31 12.91 #N/A
07-Feb-86 15.54 13.49 #N/A
14-Feb-86 15.89 13.48 #N/A
21-Feb-86 16.25 13.78 #N/A
28-Feb-86 16.41 13.47 #N/A
07-Mar-86 16.28 13.87 #N/A
14-Mar-86 17.09 14.08 #N/A
21-Mar-86 16.93 14.15 #N/A
28-Mar-86 17.32 14.64 #N/A
04-Apr-86 16.83 14.33 #N/A
11-Apr-86 17.41 13.93 #N/A
18-Apr-86 17.91 14.60 #N/A
25-Apr-86 17.99 14.63 #N/A
02-May-86 17.45 14.60 #N/A
09-May-86 17.72 15.16 #N/A
16-May-86 17.33 14.19 #N/A
23-May-86 17.96 14.07 #N/A
30-May-86 18.42 14.16 #N/A
06-Jun-86 18.35 14.15 #N/A
13-Jun-86 18.35 14.75 #N/A
20-Jun-86 18.44 14.35 #N/A
27-Jun-86 18.56 14.80 #N/A
04-Jul-86 18.17 13.94 #N/A
11-Jul-86 17.38 12.96 #N/A
18-Jul-86 16.90 12.90 #N/A
25-Jul-86 17.15 12.92 #N/A
01-Aug-86 16.76 13.01 #N/A
08-Aug-86 16.92 12.95 #N/A
15-Aug-86 17.64 13.37 #N/A
22-Aug-86 17.79 13.16 #N/A
29-Aug-86 17.98 12.96 #N/A
05-Sep-86 17.92 13.17 #N/A
12-Sep-86 16.53 12.84 #N/A
19-Sep-86 16.62 13.09 #N/A
26-Sep-86 16.59 13.45 #N/A
03-Oct-86 16.63 12.09 #N/A
10-Oct-86 16.76 11.90 #N/A
17-Oct-86 17.04 12.07 #N/A
24-Oct-86 17.01 13.09 #N/A
31-Oct-86 17.42 13.82 #N/A
07-Nov-86 17.58 13.93 #N/A
14-Nov-86 17.52 14.10 #N/A
21-Nov-86 17.60 13.57 #N/A
28-Nov-86 17.86 13.39 #N/A
05-Dec-86 17.97 13.78 #N/A
12-Dec-86 17.70 13.25 #N/A
19-Dec-86 17.87 13.98 #N/A
26-Dec-86 17.69 13.78 #N/A
02-Jan-87 19.06 12.99 #N/A
09-Jan-87 20.02 13.42 #N/A
16-Jan-87 20.70 14.40 #N/A
23-Jan-87 21.01 14.87 #N/A
30-Jan-87 21.40 14.88 #N/A
06-Feb-87 21.95 16.13 #N/A
13-Feb-87 22.03 15.99 #N/A
20-Feb-87 22.45 16.23 #N/A
27-Feb-87 22.40 15.52 #N/A
06-Mar-87 23.00 16.55 #N/A
13-Mar-87 22.99 17.15 #N/A
20-Mar-87 23.73 16.50 #N/A
27-Mar-87 23.62 16.37 #N/A
03-Apr-87 22.94 14.86 #N/A
10-Apr-87 22.43 14.77 #N/A
17-Apr-87 21.98 14.09 #N/A
24-Apr-87 21.59 14.38 #N/A
01-May-87 22.08 14.49 #N/A
08-May-87 22.53 15.10 #N/A
15-May-87 22.10 15.07 #N/A
22-May-87 21.68 14.46 #N/A
29-May-87 22.25 14.57 #N/A
05-Jun-87 22.49 14.36 #N/A
12-Jun-87 23.06 15.10 #N/A
19-Jun-87 23.50 14.61 #N/A
26-Jun-87 23.55 15.01 #N/A
03-Jul-87 21.93 14.07 #N/A
10-Jul-87 22.23 14.11 #N/A
17-Jul-87 22.75 14.24 #N/A
24-Jul-87 22.36 14.29 #N/A
31-Jul-87 23.06 14.96 #N/A
07-Aug-87 23.36 15.05 #N/A
14-Aug-87 24.05 15.73 #N/A
21-Aug-87 24.23 16.02 #N/A
28-Aug-87 23.62 15.31 #N/A
04-Sep-87 22.86 15.02 #N/A
11-Sep-87 23.29 15.17 #N/A
18-Sep-87 22.73 14.81 #N/A
25-Sep-87 23.10 14.14 #N/A
02-Oct-87 21.24 14.09 #N/A
09-Oct-87 20.02 13.49 #N/A
16-Oct-87 18.03 12.04 #N/A
23-Oct-87 15.63 10.22 #N/A
30-Oct-87 15.99 9.49 #N/A
06-Nov-87 15.83 9.70 #N/A
13-Nov-87 15.58 10.22 #N/A
20-Nov-87 15.34 10.40 #N/A
27-Nov-87 15.25 11.05 #N/A
04-Dec-87 14.15 10.34 #N/A
11-Dec-87 15.03 10.14 #N/A
18-Dec-87 15.93 10.91 #N/A
25-Dec-87 16.20 11.70 #N/A
01-Jan-88 14.09 10.34 #N/A
08-Jan-88 13.84 10.21 #N/A
15-Jan-88 14.32 9.97 #N/A
22-Jan-88 13.92 9.96 #N/A
29-Jan-88 14.48 10.41 #N/A
05-Feb-88 14.12 10.53 #N/A
12-Feb-88 14.59 10.61 #N/A
19-Feb-88 14.86 11.44 #N/A
26-Feb-88 14.92 11.46 #N/A
04-Mar-88 15.23 11.65 #N/A
11-Mar-88 15.15 11.89 #N/A
18-Mar-88 15.51 12.79 #N/A
25-Mar-88 14.76 12.42 #N/A
01-Apr-88 13.61 12.14 #N/A
08-Apr-88 14.21 12.55 #N/A
15-Apr-88 13.72 11.79 #N/A
22-Apr-88 13.73 11.51 #N/A
29-Apr-88 13.80 11.81 #N/A
06-May-88 13.59 11.97 #N/A
13-May-88 13.51 11.96 #N/A
20-May-88 13.30 12.39 #N/A
27-May-88 13.26 12.50 #N/A
03-Jun-88 13.94 12.54 #N/A
10-Jun-88 14.21 12.49 #N/A
17-Jun-88 14.17 12.20 #N/A
24-Jun-88 14.33 12.32 #N/A
01-Jul-88 13.21 12.47 #N/A
08-Jul-88 13.14 12.08 #N/A
15-Jul-88 13.23 12.31 #N/A
22-Jul-88 12.81 12.36 #N/A
29-Jul-88 13.22 12.18 #N/A
05-Aug-88 13.14 11.95 #N/A
12-Aug-88 12.71 11.77 #N/A
19-Aug-88 12.56 12.00 #N/A
26-Aug-88 12.54 11.69 #N/A
02-Sep-88 12.77 11.50 #N/A
09-Sep-88 12.88 11.25 #N/A
16-Sep-88 13.08 11.83 #N/A
23-Sep-88 13.02 13.86 #N/A
30-Sep-88 13.12 13.55 #N/A
07-Oct-88 12.80 13.27
14-Oct-88 12.70 13.77 #N/A
21-Oct-88 13.11 14.17 #N/A
28-Oct-88 12.86 13.39 #N/A
04-Nov-88 12.76 13.29 #N/A
11-Nov-88 12.36 13.28 #N/A
18-Nov-88 12.29 11.64 #N/A
25-Nov-88 12.34 12.67 #N/A
02-Dec-88 12.56 12.76 #N/A
09-Dec-88 12.80 13.22 #N/A
16-Dec-88 12.78 13.02 #N/A
23-Dec-88 12.89 13.14 #N/A
30-Dec-88 12.89 13.17 #N/A
06-Jan-89 12.48 12.10 #N/A
13-Jan-89 12.63 11.94 #N/A
20-Jan-89 12.73 11.78 #N/A
27-Jan-89 13.05 11.45 #N/A
03-Feb-89 13.21 11.50 #N/A
10-Feb-89 12.96 13.05 #N/A
17-Feb-89 13.16 12.50 #N/A
24-Feb-89 12.73 12.31 #N/A
03-Mar-89 12.92 12.95 #N/A
10-Mar-89 12.99 13.01 #N/A
17-Mar-89 12.98 12.58 #N/A
24-Mar-89 12.79 12.41 #N/A
31-Mar-89 13.04 12.91 #N/A
07-Apr-89 12.57 12.24 #N/A
14-Apr-89 12.77 12.29 #N/A
21-Apr-89 13.12 12.17 #N/A
28-Apr-89 13.09 12.12 #N/A
05-May-89 13.00 11.92 #N/A
12-May-89 13.25 12.37 #N/A
19-May-89 13.54 13.14 #N/A
26-May-89 13.55 13.27 #N/A
02-Jun-89 13.69 13.44 #N/A
09-Jun-89 13.71 13.36 #N/A
16-Jun-89 13.50 13.54 #N/A
23-Jun-89 13.77 13.86 #N/A
30-Jun-89 13.34 13.23 #N/A
07-Jul-89 13.58 12.36 #N/A
14-Jul-89 13.86 12.26 #N/A
21-Jul-89 14.10 13.27 #N/A
28-Jul-89 14.32 14.23 #N/A
04-Aug-89 14.39 14.36 #N/A
11-Aug-89 14.44 15.32 #N/A
18-Aug-89 14.49 14.82 #N/A
25-Aug-89 14.71 14.04 #N/A
01-Sep-89 14.83 14.51 #N/A
08-Sep-89 14.62 14.61 #N/A
15-Sep-89 14.44 14.13 #N/A
22-Sep-89 14.49 14.51 #N/A
29-Sep-89 14.57 14.99 #N/A
06-Oct-89 15.17 14.45 #N/A
13-Oct-89 14.08 13.48 #N/A
20-Oct-89 14.69 13.79 #N/A
27-Oct-89 14.17 13.18 #N/A
03-Nov-89 14.27 13.07 #N/A
10-Nov-89 14.33 13.30 #N/A
17-Nov-89 14.46 13.61 #N/A
24-Nov-89 14.57 13.65 #N/A
01-Dec-89 14.86 14.02 #N/A
08-Dec-89 14.80 14.02 #N/A
15-Dec-89 14.83 13.34 #N/A
22-Dec-89 14.70 12.87 #N/A
29-Dec-89 14.96 12.77 #N/A
05-Jan-90 15.39 12.29 #N/A
12-Jan-90 14.88 11.88 #N/A
19-Jan-90 14.86 11.27 #N/A
26-Jan-90 14.27 11.05 #N/A
02-Feb-90 14.52 11.73 #N/A
09-Feb-90 14.69 12.23 #N/A
16-Feb-90 14.62 12.23 #N/A
23-Feb-90 14.22 12.07 #N/A
02-Mar-90 14.71 12.92 #N/A
09-Mar-90 14.87 12.96 #N/A
16-Mar-90 15.10 13.25 #N/A
23-Mar-90 14.91 13.40 #N/A
30-Mar-90 15.02 13.42 #N/A
06-Apr-90 15.85 12.80 #N/A
13-Apr-90 16.02 13.01 #N/A
20-Apr-90 15.62 13.45 #N/A
27-Apr-90 15.35 12.89 #N/A
04-May-90 15.79 13.05 #N/A
11-May-90 16.40 13.25 #N/A
18-May-90 16.54 12.94 #N/A
25-May-90 16.57 12.59 #N/A
01-Jun-90 16.99 12.90 #N/A
08-Jun-90 16.72 13.14 #N/A
15-Jun-90 17.02 13.40 #N/A
22-Jun-90 16.71 13.01 #N/A
29-Jun-90 16.85 12.14 #N/A
06-Jul-90 17.08 11.28 #N/A
13-Jul-90 17.61 12.24 #N/A
20-Jul-90 17.33 12.46 #N/A
27-Jul-90 16.90 12.70 #N/A
03-Aug-90 16.46 11.17 #N/A
10-Aug-90 16.01 9.98 #N/A
17-Aug-90 15.64 9.89 #N/A
24-Aug-90 14.91 8.97 #N/A
31-Aug-90 15.45 9.93 #N/A
07-Sep-90 15.47 9.86 #N/A
14-Sep-90 15.15 9.71 #N/A
21-Sep-90 14.84 9.80 #N/A
28-Sep-90 14.58 9.73 #N/A
05-Oct-90 15.10 9.16 #N/A
12-Oct-90 14.46 8.23 #N/A
19-Oct-90 15.11 9.10 #N/A
26-Oct-90 14.75 9.63 #N/A
02-Nov-90 15.01 9.97 #N/A
09-Nov-90 15.10 10.18 #N/A
16-Nov-90 15.26 10.96 #N/A
23-Nov-90 15.21 10.64 #N/A
30-Nov-90 15.55 11.20 #N/A
07-Dec-90 15.78 10.90 #N/A
14-Dec-90 15.74 11.39 #N/A
21-Dec-90 15.96 11.54 #N/A
28-Dec-90 15.85 11.44 #N/A
04-Jan-91 15.48 10.83 #N/A
11-Jan-91 15.21 11.57 #N/A
18-Jan-91 16.08 11.77 #N/A
25-Jan-91 16.33 11.88 #N/A
01-Feb-91 16.68 12.39 #N/A
08-Feb-91 17.45 13.00 #N/A
15-Feb-91 17.93 13.50 #N/A
22-Feb-91 17.81 13.29 #N/A
01-Mar-91 18.06 13.58 #N/A
08-Mar-91 18.38 13.78 #N/A
15-Mar-91 18.28 14.56 #N/A
22-Mar-91 17.94 14.98 #N/A
29-Mar-91 18.29 14.87 #N/A
05-Apr-91 18.88 15.80 28.79
12-Apr-91 19.16 15.35 32.95
19-Apr-91 19.38 14.84 32.45
26-Apr-91 19.11 14.64 32.32
03-May-91 19.22 15.04 33.33
10-May-91 19.03 15.65 32.07
17-May-91 18.83 15.89 30.45
24-May-91 19.11 16.11 31.62
31-May-91 19.75 17.03 30.67
07-Jun-91 19.19 17.03 30.00
14-Jun-91 19.35 18.25 30.56
21-Jun-91 19.14 18.28 30.23
28-Jun-91 18.78 17.90 30.66
05-Jul-91 20.73 17.44 34.57
12-Jul-91 21.08 17.56 34.57
19-Jul-91 21.30 17.64 35.57
26-Jul-91 21.07 17.33 34.88
02-Aug-91 21.45 17.85 34.37
09-Aug-91 21.43 19.29 35.50
16-Aug-91 21.28 18.79 34.24
23-Aug-91 21.79 19.35 36.18
30-Aug-91 21.87 21.21 36.98
06-Sep-91 21.47 20.29 30.63
13-Sep-91 21.13 19.36 31.19
20-Sep-91 21.35 20.06 35.65
27-Sep-91 21.21 20.56 34.21
04-Oct-91 23.38 18.98 34.09
11-Oct-91 23.38 18.90 33.22
18-Oct-91 24.12 20.84 34.93
25-Oct-91 23.58 21.66 33.64
01-Nov-91 23.95 21.97 36.11
08-Nov-91 24.01 22.34 38.32
15-Nov-91 23.38 21.15 40.57
22-Nov-91 23.04 21.30 40.19
29-Nov-91 22.96 21.46 39.19
06-Dec-91 23.18 21.60 40.98
13-Dec-91 23.50 23.20 40.18
20-Dec-91 23.66 24.62 41.55
27-Dec-91 24.88 26.39 45.07
03-Jan-92 29.62 24.77 47.84
10-Jan-92 29.40 23.16 49.08
17-Jan-92 29.76 24.72 47.00
24-Jan-92 29.44 24.54 46.11
31-Jan-92 29.01 23.71 48.77
07-Feb-92 29.25 24.24 57.02
14-Feb-92 29.33 25.11 54.06
21-Feb-92 29.26 25.78 55.50
28-Feb-92 29.34 25.38 54.92
06-Mar-92 28.77 25.75 48.67
13-Mar-92 28.86 25.84 48.45
20-Mar-92 29.22 26.29 50.72
27-Mar-92 28.69 26.66 52.87
03-Apr-92 28.33 23.73 46.97
10-Apr-92 28.51 23.11 48.45
17-Apr-92 29.30 24.84 49.81
24-Apr-92 28.64 24.32 46.70
01-May-92 28.92 23.92 48.35
08-May-92 29.12 24.44 49.23
15-May-92 28.63 24.28 46.96
22-May-92 28.95 24.31 46.39
29-May-92 29.12 23.84 47.11
05-Jun-92 28.95 23.98 41.31
12-Jun-92 28.61 22.45 37.82
19-Jun-92 28.14 21.36 33.99
26-Jun-92 28.08 22.46 35.80
03-Jul-92 27.00 21.60 35.51
10-Jul-92 27.13 22.69 35.38
17-Jul-92 27.26 22.20 36.12
24-Jul-92 26.96 22.39 37.30
31-Jul-92 27.81 24.42 39.06
07-Aug-92 27.45 24.34 36.65
14-Aug-92 27.52 24.02 40.45
21-Aug-92 27.16 23.53 39.93
28-Aug-92 27.23 22.82 37.20
04-Sep-92 27.41 23.55 36.18
11-Sep-92 27.69 24.71 35.73
18-Sep-92 27.91 25.10 38.84
25-Sep-92 27.20 24.60 38.91
02-Oct-92 25.54 23.13 38.30
09-Oct-92 25.03 21.99 36.64
16-Oct-92 25.58 23.87 37.47
23-Oct-92 25.81 25.59 37.76
30-Oct-92 26.06 25.05 38.70
06-Nov-92 26.02 25.54 40.27
13-Nov-92 26.34 25.98 42.76
20-Nov-92 26.59 26.34 43.03
27-Nov-92 26.78 26.61 43.79
04-Dec-92 26.93 27.12 45.22
11-Dec-92 26.99 26.33 43.03
18-Dec-92 27.39 26.49 43.01
25-Dec-92 27.23 28.64 44.08
01-Jan-93 26.06 25.85 43.96
08-Jan-93 25.65 26.30 42.63
15-Jan-93 26.04 26.59 42.50
22-Jan-93 25.91 25.67 40.52
29-Jan-93 26.12 25.62 40.00
05-Feb-93 26.63 27.16 41.25
12-Feb-93 26.35 26.82 41.22
19-Feb-93 25.61 25.26 41.21
26-Feb-93 26.16 25.59 42.21
05-Mar-93 26.36 27.30 42.83
12-Mar-93 26.58 28.08 45.09
19-Mar-93 26.59 28.20 46.07
26-Mar-93 26.35 28.80 45.99
02-Apr-93 24.93 27.46 44.19
09-Apr-93 24.81 27.61 43.25
16-Apr-93 25.13 27.60 45.83
23-Apr-93 24.66 25.46 43.21
30-Apr-93 24.95 24.87 41.54
07-May-93 25.16 25.50 44.41
14-May-93 25.08 22.35 44.82
21-May-93 25.53 23.13 47.79
28-May-93 25.74 23.44 49.51
04-Jun-93 25.72 23.89 48.15
11-Jun-93 25.51 17.62 46.30
18-Jun-93 25.24 18.52 44.82
25-Jun-93 25.33 18.60 43.96
02-Jul-93 27.24 17.84 46.52
09-Jul-93 27.32 17.50 45.63
16-Jul-93 27.14 18.77 45.66
23-Jul-93 27.20 18.50 45.93
30-Jul-93 27.18 19.06 46.43
06-Aug-93 27.21 18.47 47.49
13-Aug-93 27.23 18.54 49.39
20-Aug-93 27.81 19.57 51.59
27-Aug-93 27.98 19.52 50.62
03-Sep-93 27.98 19.15 49.83
10-Sep-93 27.85 19.70 49.58
17-Sep-93 27.66 20.42 49.19
24-Sep-93 27.68 18.58 47.47
01-Oct-93 26.44 18.70 45.85
08-Oct-93 26.46 18.77 46.05
15-Oct-93 27.15 16.39 47.27
22-Oct-93 26.91 16.60 46.85
29-Oct-93 27.25 16.81 49.37
05-Nov-93 26.94 16.43 48.81
12-Nov-93 27.41 16.76 50.75
19-Nov-93 27.33 16.55 49.31
26-Nov-93 27.27 16.24 49.38
03-Dec-93 27.35 17.43 50.54
10-Dec-93 27.31 17.58 50.60
17-Dec-93 27.39 18.54 48.44
24-Dec-93 27.46 18.41 47.92
31-Dec-93 27.49 19.01 50.04
07-Jan-94 24.91 19.22 48.56
14-Jan-94 25.17 20.59 48.87
21-Jan-94 25.20 20.99 49.20
28-Jan-94 25.28 20.12 50.16
04-Feb-94 24.93 21.31 48.69
11-Feb-94 25.00 21.37 49.81
18-Feb-94 24.98 21.42 48.57
25-Feb-94 24.84 21.59 49.34
04-Mar-94 24.81 22.44 48.61
11-Mar-94 24.93 21.51 49.49
18-Mar-94 25.19 21.82 50.39
25-Mar-94 24.57 21.45 48.53
01-Apr-94 22.84 20.04 45.99
08-Apr-94 22.90 20.86 46.77
15-Apr-94 22.70 20.63 46.46
22-Apr-94 22.75 21.39 46.01
29-Apr-94 23.01 20.49 48.48
06-May-94 22.91 20.38 48.09
13-May-94 22.77 19.48 45.50
20-May-94 23.25 20.47 44.50
27-May-94 23.37 20.79 45.87
03-Jun-94 23.48 20.49 43.56
10-Jun-94 23.31 20.43 43.89
17-Jun-94 23.36 19.77 42.61
24-Jun-94 22.58 18.95 38.34
01-Jul-94 19.59 18.04 40.14
08-Jul-94 19.77 18.28 37.92
15-Jul-94 19.98 18.88 37.90
22-Jul-94 19.97 18.35 37.26
29-Jul-94 20.18 18.79 38.21
05-Aug-94 20.11 18.74 37.43
12-Aug-94 20.34 18.20 36.30
17-Aug-94 20.55 18.66 36.18
PW COMPARABLE COMPANY INDEX1 IS A COMPOSITE OF: BRD, CTB, SAME, TBCC
PW COMPARABLE COMPANY INDEX2 IS A COMPOSITE OF: DAP, AZO, HLO, ORLY
SOURCE: TRADELINE DAILY PRICES / S&P COMPUSTAT 12-MONTH EARNINGS
<PAGE>
PART V
SELECTED COMPARABLE COMPANY ANALYSIS
<PAGE>
<TABLE>
<CAPTION>
Cooper Tire &
($ in millions, except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
PRICE & CAPITALIZATION DATA
Latest Price per Share $14.38 $28.00 $26.13 $1.06 $12.75
Market Value of Common Equity $49.0 $61.3 $2,182.7 $1.5 $369.1
Total Preferred Equity
Total Debt 13.2 30.3 44.1 4.4 26.1
Other Long-Term Liabilities 1.4 4.3 173.5 0.3
Less: Cash & Equivalents (1.1) (0.1) (25.8) (0.1)
________________________________________________________________________
TOTAL VALUE $62.6 $95.8 $2,374.5 $6.1 $395.1
_____________________________________________________________________________________________________________________
VALUATION DATA
MEAN MEDIAN
<C> <C>
Total Value/LTM Revenues 0.5 x 0.4 x 2.0 x 0.3 x 0.7 x 0.8x 0.5x
Total Value/LTM EBITDA 8.8 13.8 11.2 7.4 10.5 10.7 10.8
Total Value/3-yr Avg. EBITDA 8.7 NMF 12.2 6.6 11.3 10.0 11.3
Total Value/LTM EBIT 11.3 16.7 14.3 12.7 11.7 13.8 13.5
Total Value/Total Capitalization 1.4 1.2 3.0 0.8 2.8 1.9 2.0
Total Value/Total Assets 1.1 0.8 2.7 0.6 2.4 1.6 1.6
Price/LTM EPS 19.8 x 15.1 x 21.4 x 19.1 x 17.2 18.2x 18.2x
Price/Projected 1994 EPS NA NA 18.1 NA 15.0 16.6 16.6
Price/Projected 1995 EPS NA NA 16.0 NA 13.4 14.7 14.7
Equity Value/LTM Cash Flow 9.8 13.2 13.7 3.2 14.1 11.1 13.4
Equity Value/Book Value 1.6 1.4 4.0 0.5 3.2 2.3 2.3
_____________________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Dec-1993 Dec-1993 Dec-1993 Dec-1993 Dec-1993
Total Revenues $123.0 $242.7 $1.194.2 $19.0 $568.7
EBIT 5.5 5.7 166.6 0.5 33.7
EBITDA 7.1 6.9 213.0 0.8 37.7
Net Income 2.5 4.1 102.2 0.1 21.4
Cash Flow 5.0 4.7 159.1 0.5 26.2
EBIT Margin 4.5% 2.4% 14.0% 2.5% 5.9% 6.2% 4.2%
EBITDA Margin 5.8 2.9 17.8 4.3 6.6 7.9 5.5
Return on Avg. Net Capitalization 24.6 14.6 44.9 12.7 47.3 29.9 29.7%
Net Income Margin 2.0 1.7 8.6 0.4 3.8 3.6 2.7
Return on Avg. Return on Avg.
Common Equity 15.7 18.3 37.2 5.2 36.7 24.3 27.5
Cash Flow/Total Assets 8.8 4.1 17.9 4.8 15.7 10.6 10.2
</TABLE>
<PAGE>
<TABLE>
Cooper Tire &
($ in millions, except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA
Total Assets $56.6 $114.0 $889.6 $9.8 $166.7
Total Capitalization 46.2 79.0 786.7 7.7 142.6
Common Equity 31.5 44.5 550.2 3.0 116.5
Debt/Total Capitalization 28.7% 38.3% 5.6% 56.5% 18.3%
Shares Outstanding 3.4 2.2 83.5 1.4 28.9
_____________________________________________________________________________________________________________________________
PERFORMANCE VARIABLES
3-YEAR GROWTH RATES
Total Revenues 3.9% 8.1% 9.2 0.8% 6.7%
EBITDA 2.1 NMF 15.0 (9.0) 11.9
Net Income 13.4 NMF 13.4 (34.0) 10.0
Cash Flow (1.8) NMF 16.6 (6.4) 15.2
Total Assets (0.4) 3.9 15.2 0.4 11.0
3-YEAR AVERAGES
EBITDA Margin 6.0% 1.2% 17.3% 4.9% 6.4%
Net Income Margin 2.0 (0.1) 8.6 0.8 3.7
</TABLE>
<PAGE>
SUMMARY OF SELECTED AUTO RETAIL COMPANIES
<TABLE>
<CAPTION>
Discount Auto Hi-Lo O Reilly
($ in millions, except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
PRICE & CAPITALIZATION DATA
Latest Price per Share $14.38 $54.25 $24.13 $11.88 $28.00
Market Value of Common Equity $49.0 $4,033.5 $336.6 $125.2 $230.6
Total Preferred Equity
Total Debt 13.2 4.4 59.9 32.4 1.2
Other Long-Term Liabilities 1.4 9.4 3.8 0.5
Less: Cash & Equivalents (1.1) (60.7) (8.2) (1.7) (12.0)
TOTAL VALUE $62.6 $3,986.6 $388.3 $159.6 $220.3
____________________________________________________________________________________________________________________________________
VALUATION DATA MEAN
MEDIAN
Total Value/LTM Revenues 0.5 x 3.0 x 2.0 x 0.8 x 1.6 x 1.8x 1.8x
Total Value/LTM EBITDA 8.8 21.7 13.6 9.1 14.4 14.7 14.0
Total Value/3-yr Avg. EBITDA 8.7 32.3 18.6 8.1 17.3 19.1 17.9
Total Value/LTM EBIT 11.3 25.3 16.3 12.7 17.6 18.0 16.9
Total Value/Total Capitalization 1.4 8.6 2.6 1.1 3.7 4.0 3.1
Total Value/Total Assets 1.1 5.2 2.2 1.0 3.0 2.9 2.6
Price/LTM EPS 19.8 x 41.4 x 25.7 x 18.6 x 28.0 x 28.4x 26.8x
Price/Projected Est. 1 EPS NA 36.2 23.2 14.8 23.3 24.4 23.3
Price/Projected Est. 2 EPS NA 29.3 18.6 12.5 19.2 19.9 18.9
Equity Value/LTM Cash Flow 9.8 34.8 20.8 11.0 20.4 21.8 20.6
Equity Value/Book Value 1.6 9.0 3.7 1.2 4.0 4.5 3.9
____________________________________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Dec-1993 Feb-1994 Nov-1993 Dec-1993 Dec-1993
Total Revenues $123.0 $1,348.1 $191.2 $205.2 $137.2
EBIT 5.5 157.7 23.8 12.5 12.5
EBITDA 7.1 183.3 28.6 17.5 15.3
Net Income 2.5 96.7 11.5 6.7 8.2
Cash Flow 5.0 115.7 16.2 11.4 11.3
EBIT Margin 4.5% 11.7% 12.4% 6.1% 9.1% 9.8% 10.4%
EBITDA Margin 5.8 13.6 14.9 8.5 11.2 12.1 12.4
Return on Avg. Net Capitalization 24.6 48.8 19.6 18.4 52.8 34.9 34.2
Net Income Margin 2.0 7.2 6.0 3.3 6.0 5.6 6.0
Return on Avg. Common Equity 15.7 25.7 13.7 13.2 28.5 20.3 19.7
Cash Flow/Total Assets 8.8 15.1 9.1 7.4 15.4 11.8 12.1
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Discount Auto Hi-Lo O Reilly
($ in millions, except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
____________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA
Total Assets $56.6 $766.4 $176.9 $154.6 $73.1
Total Capitalization 46.2 466.0 149.9 141.7 59.7
Common Equity 31.5 448.5 90.0 101.8 57.8
Debt/Total Capitalization 28.7% 0.9% 40.0% 22.8% 2.1%
Shares Outstanding 3.4 74.4 14.0 10.5 8.2
PERFORMANCE VARIABLES
3-YEAR GROWTH RATES
Total Revenues 3.9% 22.0% 27.5% 14.8% 20.2%
EBITDA 2.1 34.7 29.2 (6.3) 19.3
Net Income 13.4 40.3 46.2 (1.4) 22.9
Cash Flow (1.8) 42.7 36.3 (6.2) 22.6
Total Assets (0.4) 32.2 25.8 12.3 21.5
3-YEAR AVERAGES
EBITDA Margin 6.0% 12.0% 14.6% 11.0% 11.2%
Net Income Margin 2.0 6.3 6.3 4.1 5.8
</TABLE>
<PAGE>
BIG O TIRES INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (6-Apr-94) $14.38 Price Earnings Ratio NA 19.8x 19.8x
Shares Outstanding (Dec-1993) 3.410 Price/Book Value Ratio 1.6x 1.6x
Aggregate Market Value $49.0 Price/Cash Flow Ratio 9.8x 9.8x
LTM Ended 12/31/93 Total Value/EBIT 11.5x 11.5x
Latest Fiscal Year End 12/31/93 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 3/17/94 Indicated Dividend Yield 0.00%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $123.0 $7.1 5.8% $5.5 4.5% $4.3 3.5% $2.5 2.0% $1.6 $5.0 $1.0
1993 123.0 7.1 5.8 5.5 4.5 4.3 3.5 2.5 2.0 1.6 5.0 1.0
1992 119.8 7.6 6.4 5.9 5.0 4.8 4.0 2.8 2.3 1.7 6.0 0.8
1992 113.8 6.8 6.0 5.0 4.4 3.5 3.0 1.9 1.7 1.8 5.2 0.5
1991-1993 Growth Rate 3.9% 2.1% 5.0% 11.9% 13.4% (6.4%) (1.8)% 37.6%
1991-1993 Average 6.0% 4.6% 3.5% 2.0%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $56.6 $11.2 $13.2 $45.0 $12.1 26.9% 4.5x 1.9x 24.6% 15.7%
1993 56.6 11.2 13.2 45.0 12.1 26.9 4.5 1.9 12.3 7.5
1992 57.7 17.3 12.2 45.0 8.4 18.6 5.1 2.4 12.8 8.5
1991 57.1 20.7 12.6 47.8 14.3 30.0 3.2 3.3 21.0 12.4
1991-1993 Growth Rate (0.4)% (26.3)% 2.3% (2.9)% (8.1)%
1991-1993 Average 25.2% 4.3x 2.5x 15.4% 9.5%
</TABLE>
<PAGE>
BIG O TIRES INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book
Range
------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $0.73 $0.00 0.0 $9.2 $4.85 - 15.00 6.7-20.7x 0.00 - 0.00% 0.52 - 1.62x
1993 0.73 0.00 0.0 9.2 4.85 - 15.00 6.7-20.7 0.00 - 0.00 0.52 - 1.62
1992 0.80 0.00 0.0 9.8 2.19 - 5.63 2.7-7.0 0.00 - 0.00 0.22 - 0.58
1991 0.55 0.00 0.0 8.8 2.81 - 8.75 5.1-15.9 0.00 - 0.00 0.32 - 0.99
1991-1993 Growth Rate 15.0 NA% 2.3%
1991-1993 Average 0.0%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
Dec-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $2.4 -- 5.3%
Total Long-Term Debt 10.8 24.7 23.4
Deferred Taxes 0.0 0.1 0.1
Other L-T Liabilities 1.4 3.2 3.0
Preferred Equity 0.0 0.0 0.0
Common Equity 31.5 72.1 68.2
--------------------------------------------
Total Capitalization $46.1 100.0 100.0%
Less: Cash & Equivalents (1.1)
-------
Adjusted Total
Capitalization $45.0
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Big O Tires Inc (COM PAR $0.10)
Price/Volume Analysis
Weekly: November 18, 1992 to April 1, 1994
- ---------------------------------------------------------------
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
20-Nov-92 $14.500 $12.750 $13.750 "208,100 "100.0%
27-Nov-92 14.250 13.500 14.250 "28,600 " 103.6%
04-Dec-92 15.000 13.750 14.125 "157,900 "102.7%
11-Dec-92 14.875 12.500 12.750 "239,200 "92.7%
18-Dec-92 13.875 12.750 13.500 "130,200 "98.2%
25-Dec-92 13.875 13.000 13.375 "56,900 "97.3%
01-Jan-93 13.750 13.000 13.125 "52,900 " 95.5%
08-Jan-93 13.750 13.000 13.375 "82,400 " 97.3%
15-Jan-93 13.375 12.125 12.625 "169,600 "91.8%
22-Jan-93 12.625 11.125 12.250 "211,400 "89.1%
29-Jan-93 14.000 11.750 13.750 "233,100 "100.0%
05-Feb-93 14.000 12.250 12.500 "120,800 "90.9%
12-Feb-93 14.250 12.000 13.625 "214,700 "99.1%
19-Feb-93 13.750 12.500 13.375 "132,400 "97.3%
26-Feb-93 14.000 12.375 13.500 "116,800 "98.2%
05-Mar-93 14.250 12.750 12.875 "217,800 "93.6%
12-Mar-93 13.500 12.000 12.000 "96,200 "87.3%
19-Mar-93 12.625 12.000 12.375 "35,200 "90.0%
26-Mar-93 12.500 11.750 12.250 "107,600 "89.1%
02-Apr-93 12.500 11.500 12.000 "76,400 "87.3%
09-Apr-93 13.500 10.875 13.250 "246,000 "96.4%
16-Apr-93 14.250 12.250 12.250 "149,000 "89.1%
23-Apr-93 13.000 11.875 12.750 "131,800 "92.7%
30-Apr-93 13.125 12.625 12.750 "22,200 "92.7%
07-May-93 13.750 12.750 13.250 "133,000 "96.4%
14-May-93 13.625 13.000 13.125 "58,300 "95.5%
21-May-93 13.625 13.000 13.625 "69,100 "99.1%
28-May-93 13.750 13.000 13.625 "67,900 "99.1%
04-Jun-93 16.125 13.250 15.750 "387,100 "114.5%
11-Jun-93 16.375 14.500 14.500 "428,500 "105.5%
18-Jun-93 15.250 13.875 14.500 "172,000 "105.5%
25-Jun-93 15.000 14.000 15.000 "66,400 "109.1%
02-Jul-93 15.500 14.750 15.250 "107,800 "110.9%
09-Jul-93 15.500 14.000 14.000 "66,200 "101.8%
16-Jul-93 15.375 13.250 15.125 "94,600 "110.0%
23-Jul-93 15.250 14.250 15.000 "124,500 "109.1%
30-Jul-93 15.750 14.500 15.625 "103,100 "113.6%
06-Aug-93 $16.875 $15.250 $15.875 "167,000 "115.5%
13-Aug-93 17.250 15.875 16.750 "108,200 "121.8%
20-Aug-93 17.000 16.000 16.625 "116,400 "120.9%
27-Aug-93 16.750 16.000 16.375 "96,800 "119.1%
03-Sep-93 17.250 16.000 17.000 "127,200 "123.6%
10-Sep-93 17.000 15.750 16.000 "354,800 "116.4%
17-Sep-93 16.500 15.250 16.250 "105,500 "118.2%
24-Sep-93 16.250 15.000 15.000 "97,900 "109.1%
01-Oct-93 15.250 14.750 15.000 "112,300 "109.1%
08-Oct-93 15.375 14.750 15.250 "95,700 "110.9%
15-Oct-93 16.250 14.625 16.000 "272,800 "116.4%
22-Oct-93 16.500 14.750 14.750 "130,100 "107.3%
29-Oct-93 16.250 15.000 16.125 "120,300 "117.3%
05-Nov-93 16.250 14.500 14.625 "49,500 "106.4%
12-Nov-93 15.625 14.500 14.875 "48,000 "108.2%
19-Nov-93 15.000 14.000 14.625 "163,100 "106.4%
26-Nov-93 14.750 13.750 14.250 "57,900 "103.6%
03-Dec-93 15.500 14.125 15.500 "79,600 "112.7%
10-Dec-93 15.500 14.500 15.375 "50,300 "111.8%
17-Dec-93 15.375 13.750 14.125 "96,800 "102.7%
24-Dec-93 15.000 13.500 14.875 "80,000 "108.2%
31-Dec-93 15.000 14.250 14.250 "26,600 "103.6%
07-Jan-94 14.500 13.750 14.000 "21,700 "101.8%
14-Jan-94 14.500 13.000 13.750 "88,800 "100.0%
21-Jan-94 13.875 13.000 13.500 "37,300 "98.2%
28-Jan-94 13.875 12.750 13.625 "88,400 "99.1%
04-Feb-94 16.750 13.250 15.500 "235,500 "112.7%
11-Feb-94 15.750 14.500 14.500 "67,400 "105.5%
18-Feb-94 15.250 14.000 14.375 "73,400 "104.5%
25-Feb-94 15.250 13.750 13.750 "47,500 "100.0%
04-Mar-94 14.250 13.375 14.000 "33,000 "101.8%
11-Mar-94 15.250 14.000 14.875 "90,500 "108.2%
18-Mar-94 15.750 14.500 15.250 "107,500 "110.9%
25-Mar-94 16.000 15.250 16.000 "71,700 "116.4%
01-Apr-94 16.250 14.250 14.750 "88,000 "107.3%
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
(vi) 1993 Net income excludes extraordinary items totaling $1.038 million. A
43% tax rate is assumed.
(vii) 1991 Net income excludes loss on sale or closure of retail stores of $.311
million. A 44% tax rate is assumed.
<PAGE>
BRAD RAGAN, INC.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (6-Apr-94) $28.00 Price Earnings Ratio NA 15.1x 15.1x
Shares Outstanding (Dec-1993) 2.191 Price/Book Value Ratio 1.4x 1.4x
Aggregate Market Value $61.3 Price/Cash Flow Ratio 13.2x 13.2x
LTM Ended 12/31/93 Total Value/EBIT 16.7x 16.7x
Latest Fiscal Year End 12/31/93 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 3/17/94 Indicated Dividend Yield 0.00%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $242.7 $6.9 2.9 $5.7 2.4 $4.1 1.7% $4.1 1.7 $1.2 $4.7 $1.1
1993 242.7 6.9 2.9 5.7 2.4 4.1 1.7 4.1 1.7 1.2 4.7 1.1
1992 227.5 3.4 1.5 2.0 0.9 0.0 0.0 0.9 0.4 1.3 1.9 1.1
1992 207.7 (1.4) (0.7) (3.0)(1.5) (5.5) (2.6) (5.2) (2.5) 1.6 (3.7) 0.3
1991-1993 Growth Rate 8.1 NMF NMF NMF NMF (14.3) NMF 83.7%
1991-1993 Average 1.2% 0.6% (0.3)% (0.1)%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $114.0 $40.2 $5.7 $78.9 $30.2 38.2 3.4x 1.6x 14.6 18.3%
1993 114.0 40.2 5.7 78.9 30.2 38.2 3.4 1.6 7.5 9.4
1992 109.9 42.4 6.1 74.8 30.5 40.7 1.0 1.7 2.7 2.3
1991 105.6 48.1 6.4 76.2 33.1 43.4 (1.2) 2.0 (8.0) (24.8)
1991-1993 Growth Rate 3.9 (8.5) (5.1) 1.7 (4.5)%
1991-1993 Average 40.8 1.1x 1.8x 0.7 (4.4)%
</TABLE>
<PAGE>
BRAD RAGAN, INC.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $1.85 $0.00 0.0 $20.3 $20.25-28.00 10.9-15.1x 0.00 - 0.00% 1.00 - 1.38x
1993 1.85 0.00 0.0 20.3 20.25-28.00 10.9-15.1 0.00 - 0.00 1.00 - 1.38
1992 0.42 0.00 0.0 19.0 19.50-23.75 46.4-56.5 0.00 - 0.00 1.03 - 1.25
1991 (2.35) 0.12 (5.1) 19.0 16.75-23.00 (7.1)-(9.8) 0.52 - 0.72 0.88 - 1.21
1991-1993 Growth Rate NMF NMF 3.4%
1991-1993 Average (1.7)%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
Dec-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $30.3 -- 38.3%
Total Long-Term Debt 0.0 0.0 0.0
Deferred Taxes 0.0 0.0 0.0
Other L-T Liabilities 4.3 8.7 5.4
Preferred Equity 0.0 0.0 0.0
Common Equity 44.5 91.2 56.3
--------------------------------------------
Total Capitalization $79.0 100.0 100.0%
Less: Cash & Equivalents (0.1)
-------
Adjusted Total
Capitalization $78.9
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Ragan Brad Inc
Price/Volume Analysis
Weekly: November 18, 1992 to April 1, 1994
<TABLE>
<CAPTION>
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
<S> <C> <C> <C> <C> <C>
20-Nov-92 $26.000 $25.500 $25.500 400 100.0%
27-Nov-92 26.000 24.500 24.500 600 96.1%
04-Dec-92 26.500 24.500 26.500 700 103.9%
11-Dec-92 28.000 26.000 26.000 "1,300 " 102.0%
18-Dec-92 27.000 24.000 24.000 "1,200 " 94.1%
25-Dec-92 24.000 22.000 22.000 "1,300 " 86.3%
01-Jan-93 23.000 20.250 23.000 "4,200 " 90.2%
08-Jan-93 24.500 23.500 24.000 "1,300 " 94.1%
15-Jan-93 25.500 24.500 25.500 "1,200 " 100.0%
22-Jan-93 26.000 25.000 25.000 600 98.0%
29-Jan-93 26.000 25.000 25.000 500 98.0%
05-Feb-93 25.500 24.500 24.500 200 96.1%
12-Feb-93 25.000 24.000 24.000 #N/A 94.1%
19-Feb-93 25.000 24.000 24.000 #N/A 94.1%
26-Feb-93 26.000 24.500 25.500 700 100.0%
05-Mar-93 26.000 25.500 25.500 #N/A 100.0%
12-Mar-93 27.500 26.000 27.000 "1,900 " 105.9%
19-Mar-93 27.625 25.500 25.500 400 100.0%
26-Mar-93 26.500 25.500 25.500 #N/A 100.0%
02-Apr-93 26.500 25.500 25.500 #N/A 100.0%
09-Apr-93 26.500 25.500 25.500 400 100.0%
16-Apr-93 25.500 24.000 24.000 "1,000 " 94.1%
23-Apr-93 25.000 24.000 24.000 #N/A 94.1%
30-Apr-93 25.500 24.000 25.000 200 98.0%
07-May-93 25.500 24.500 24.500 #N/A 96.1%
14-May-93 26.000 25.000 25.000 200 98.0%
21-May-93 26.500 25.500 25.500 200 100.0%
28-May-93 26.500 25.500 26.500 100 103.9%
04-Jun-93 28.000 26.500 27.500 600 107.8%
11-Jun-93 28.500 27.000 28.500 300 111.8%
18-Jun-93 29.000 28.500 28.500 600 111.8%
25-Jun-93 28.500 27.500 27.500 200 107.8%
02-Jul-93 27.500 24.000 24.000 "5,900 " 94.1%
09-Jul-93 25.000 23.500 24.500 "4,300 " 96.1%
16-Jul-93 25.500 24.000 25.500 400 100.0%
23-Jul-93 26.000 24.500 25.000 "1,400 " 98.0%
30-Jul-93 26.000 24.000 26.000 500 102.0%
06-Aug-93 $26.500 $25.500 $25.500 #N/A 100.0%
13-Aug-93 26.500 25.500 25.500 #N/A 100.0%
20-Aug-93 27.000 25.500 26.000 "3,000 " 102.0%
27-Aug-93 27.000 25.500 25.500 200 100.0%
03-Sep-93 27.000 25.000 25.000 "2,400 " 98.0%
10-Sep-93 26.000 25.000 25.000 200 98.0%
17-Sep-93 26.500 25.000 25.500 200 100.0%
24-Sep-93 26.500 25.500 26.500 100 103.9%
01-Oct-93 28.000 27.000 27.000 200 105.9%
08-Oct-93 28.000 27.000 27.000 #N/A 105.9%
15-Oct-93 29.500 27.500 29.500 "2,600 " 115.7%
22-Oct-93 30.000 29.000 30.000 200 117.6%
29-Oct-93 30.500 29.500 29.750 100 116.7%
05-Nov-93 30.250 29.250 29.250 #N/A 114.7%
12-Nov-93 30.750 29.250 29.750 300 116.7%
19-Nov-93 30.750 29.750 29.750 #N/A 116.7%
26-Nov-93 30.250 29.250 29.250 200 114.7%
03-Dec-93 30.250 29.250 29.750 600 116.7%
10-Dec-93 30.250 29.250 29.250 #N/A 114.7%
17-Dec-93 30.250 28.500 28.500 600 111.8%
24-Dec-93 29.500 28.500 29.000 100 113.7%
31-Dec-93 29.500 28.000 28.000 200 109.8%
07-Jan-94 29.000 28.000 28.000 #N/A 109.8%
14-Jan-94 30.000 28.000 29.000 700 113.7%
21-Jan-94 30.000 29.000 30.000 "1,100 " 117.6%
28-Jan-94 29.875 29.250 29.250 "1,000 " 114.7%
04-Feb-94 30.250 29.000 29.000 900 113.7%
11-Feb-94 30.000 28.500 28.500 200 111.8%
18-Feb-94 32.000 27.750 30.500 "8,100 " 119.6%
25-Feb-94 30.500 29.500 29.500 400 115.7%
04-Mar-94 30.000 28.000 28.000 800 109.8%
11-Mar-94 27.500 27.000 27.000 "1,400 " 105.9%
18-Mar-94 28.000 26.500 28.000 "4,000 " 109.8%
25-Mar-94 29.000 27.500 29.000 "2,900 " 113.7%
01-Apr-94 29.000 27.500 27.500 "1,400 " 107.8%
</TABLE>
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
COOPER TIRE & RUBBER CO.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (5-Apr-94) $26.13 Price Earnings Ratio 18.1x 21.4x 21.4x
Shares Outstanding (Dec-1993) 83.550 Price/Book Value Ratio 4.0x 4.0x
Aggregate Market Value $2,182.7 Price/Cash Flow Ratio 13.7x 13.7x
LTM Ended 12/31/93 Total Value/EBIT 14.4x 14.4x
Latest Fiscal Year End 12/31/93 Indicated Annual Dividend $0.00 $0.20
Earnings Forecast as of 3/17/94 Indicated Dividend Yield 0.00%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993)$1,194.2 $213.0 17.8 $166.6 14.0 $164.3 13.8% $102.2 8.6 $46.4 $159.1 $117.2
1993 1,194.2 213.0 17.8 166.6 14.0 164.3 13.8 102.2 8.6 46.4 159.1 117.2
1992 1,176.0 210.0 17.9 171.9 14.6 169.8 14.4 108.2 9.2 38.1 112.7 110.2
1991 1,001.6 161.0 16.1 129.0 12.9 124.5 12.4 79.4 7.9 32.0 117.0 86.0
1991-1993 Growth Rate 9.2 15.0% 13.6% 14.9% 13.4% 20.4 16.6 16.8%
1991-1993 Average 17.3% 13.8% 13.5% 8.6%%
</TABLE>
BALANCE SHEET AND RATIOS
<TABLE>
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $889.6 $204.9 $527.9 $742.0 $18.3 2.5 70.8x 2.6x 44.9 37.2%
1993 889.6 204.9 527.9 742.0 18.3 2.5 70.8 2.6 24.7 20.0
1992 796.9 175.2 460.4 607.5 (1.7) (0.3) 82.6 2.3 30.1 23.7
1991 670.6 144.3 388.6 534.8 35.2 6.6 28.4 2.2 48.2 36.1
1991-1993 Growth Rate 15.2 19.2 16.6 17.8 (28.0)%
1991-1993 Average 2.9 60.6x 2.4x 34.3 26.6%
</TABLE>
<PAGE>
COOPER TIRE & RUBBER CO.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $1.22 $0.20 16.4 $6.6 $23.38-29.50 19.2-24.2x 0.68 - 0.86% 3.55 - 4.48x
1993 1.22 0.20 16.4 6.6 23.38-29.50 19.2-24.2 0.68 - 0.86 3.55 - 4.48
1992 1.30 0.17 13.1 5.7 7.88-26.38 6.1-20.3 0.64 - 2.16 1.39 - 4.66
1991 0.96 0.13 13.5 5.3 6.19-10.50 6.4-10.9 1.24 - 2.10 1.16 - 1.98
1991-1993 Growth Rate 12.7 24.0% 11.3%
1991-1993 Average 14.3%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
Dec-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $5.3 -- 0.7%
Total Long-Term Debt 38.7 5.1 5.0
Deferred Taxes 19.0 2.5 2.5
Other L-T Liabilities 154.6 20.3 20.1
Preferred Equity 0.0 0.0 0.0
Common Equity 550.2 72.2 71.7
--------------------------------------------
Total Capitalization $767.8 100.0 100.0%
Less: Cash & Equivalents (25.8)
-------
Adjusted Total
Capitalization $742.0
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Cooper Tire & Rubr Co
Price/Volume Analysis
"Weekly: November 20, 1992 to April 5, 1994"
<TABLE>
<CAPTION>
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
<S> <C> <C> <C> <C> <C>
20-Nov-92 $32.625 $31.750 $32.375 "140,600 " 100.0%
27-Nov-92 33.000 32.250 32.625 "410,000 " 100.8%
04-Dec-92 33.375 32.125 33.125 "862,500 " 102.3%
11-Dec-92 33.500 31.625 32.250 "520,900 " 99.6%
18-Dec-92 33.125 31.750 32.500 "589,300 " 100.4%
25-Dec-92 35.625 32.125 35.250 "594,800 " 108.9%
01-Jan-93 35.375 34.000 34.000 "362,000 " 105.0%
08-Jan-93 35.875 34.125 34.625 "940,400 " 106.9%
15-Jan-93 35.500 33.750 34.875 "870,400 " 107.7%
22-Jan-93 35.000 33.375 33.500 "728,500 " 103.5%
29-Jan-93 35.000 33.000 33.500 "740,900 " 103.5%
05-Feb-93 36.375 33.625 35.875 "709,600 " 110.8%
12-Feb-93 35.750 33.875 34.875 "499,500 " 107.7%
19-Feb-93 35.250 32.375 32.875 "568,400 " 101.5%
26-Feb-93 34.375 30.500 33.250 "1,180,800 " 102.7%
05-Mar-93 36.250 32.125 35.875 "869,500 " 110.8%
12-Mar-93 38.000 35.625 36.625 "849,300 " 113.1%
19-Mar-93 37.375 36.250 36.875 "604,500 " 113.9%
26-Mar-93 38.250 36.375 37.750 "951,600 " 116.6%
02-Apr-93 39.500 37.625 38.125 "862,900 " 117.8%
09-Apr-93 38.375 36.625 38.250 "745,100 " 118.1%
16-Apr-93 39.625 37.750 38.250 "881,400 " 118.1%
23-Apr-93 38.125 32.750 35.000 "2,226,200 " 108.1%
30-Apr-93 34.875 33.625 34.250 "1,319,200 " 105.8%
07-May-93 35.875 33.750 35.125 "851,200 " 108.5%
14-May-93 35.375 29.375 30.375 "3,521,600 " 93.8%
21-May-93 32.500 29.000 31.500 "2,504,200 " 97.3%
28-May-93 32.250 31.000 31.750 "1,225,000 " 98.1%
04-Jun-93 32.875 31.125 32.875 "1,431,800 " 101.5%
11-Jun-93 31.750 23.875 23.875 "11,878,800 " 73.7%
18-Jun-93 25.625 21.500 25.500 "7,523,300 " 78.8%
25-Jun-93 26.375 24.625 25.500 "2,900,500 " 78.8%
02-Jul-93 26.000 24.250 24.250 "1,433,300 " 74.9%
09-Jul-93 25.125 23.125 23.625 "1,995,900 " 73.0%
16-Jul-93 25.875 22.875 25.625 "3,455,800 " 79.2%
23-Jul-93 25.875 23.750 25.250 "1,811,200 " 78.0%
30-Jul-93 26.375 25.250 26.000 "1,460,200 " 80.3%
06-Aug-93 $26.000 $24.375 $25.000 "1,297,500 " 77.2%
13-Aug-93 25.625 24.250 25.125 "1,255,100 " 77.6%
20-Aug-93 27.375 25.375 26.750 "1,352,200 " 82.6%
27-Aug-93 26.875 26.250 26.500 "973,200 " 81.9%
03-Sep-93 26.875 25.250 26.000 "928,400 " 80.3%
10-Sep-93 26.875 25.250 26.875 "969,400 " 83.0%
17-Sep-93 28.625 26.875 27.875 "2,061,900 " 86.1%
24-Sep-93 28.000 23.625 25.125 "3,100,500 " 77.6%
01-Oct-93 26.250 24.250 24.375 "1,066,600 " 75.3%
08-Oct-93 25.500 24.250 24.625 "868,000 " 76.1%
15-Oct-93 25.000 20.000 21.000 "4,654,100 " 64.9%
22-Oct-93 22.000 21.125 21.500 "4,149,000 " 66.4%
29-Oct-93 22.250 21.250 21.750 "1,817,000 " 67.2%
05-Nov-93 22.000 21.250 21.250 "1,115,600 " 65.6%
12-Nov-93 21.750 20.625 21.750 "1,206,000 " 67.2%
19-Nov-93 22.125 21.250 21.500 "1,219,100 " 66.4%
26-Nov-93 23.250 20.500 21.250 "1,089,700 " 65.6%
03-Dec-93 23.500 21.250 22.750 "2,029,900 " 70.3%
10-Dec-93 22.875 22.250 22.875 "1,259,500 " 70.7%
17-Dec-93 24.750 23.000 24.375 "2,364,200 " 75.3%
24-Dec-93 24.375 23.375 24.125 "1,581,200 " 74.5%
31-Dec-93 25.500 23.875 25.000 "1,236,300 " 77.2%
07-Jan-94 25.250 23.375 24.000 "1,135,800 " 74.1%
14-Jan-94 26.000 24.000 25.875 "1,534,600 " 79.9%
21-Jan-94 27.375 25.875 26.500 "1,737,600 " 81.9%
28-Jan-94 26.500 24.875 25.250 "1,206,200 " 78.0%
04-Feb-94 27.750 25.000 27.000 "2,337,200 " 83.4%
11-Feb-94 28.250 26.000 26.875 "2,141,500 " 83.0%
18-Feb-94 27.375 26.375 26.875 "1,268,200 " 83.0%
25-Feb-94 27.375 26.375 27.000 "687,400 " 83.4%
04-Mar-94 28.375 26.250 28.250 "1,323,500 " 87.3%
11-Mar-94 28.500 26.750 26.875 "948,500 " 83.0%
18-Mar-94 27.875 26.750 27.375 "1,315,000 " 84.6%
25-Mar-94 29.500 26.875 26.875 "1,275,400 " 83.0%
01-Apr-94 27.250 25.000 25.500 "1,219,000 " 78.8%
05-Apr-94 25.250 23.375 25.125 "1,001,900 " 77.6%
</TABLE>
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
S & M COMPANY
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (5-Apr-94) $1.06 Price Earnings Ratio NA 19.1x 19.1x
Shares Outstanding (Dec-1993) 1.418 Price/Book Value Ratio 0.5x 0.5x
Aggregate Market Value $1.5 Price/Cash Flow Ratio 3.2x 3.2x
LTM Ended 12/31/93 Total Value/EBIT NA NA
Latest Fiscal Year End 12/31/93 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 3/17/94 Indicated Dividend Yield 0.00%
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $19.0 $0.8 4.3 $0.5 2.5 $0.2 0.8 $0.1 0.4 $0.3 $0.5 $0.2
1993 19.0 0.8 4.3 0.5 2.5 0.2 0.8 0.1 0.4 0.3 0.5 0.2
1992 18.7 0.9 5.1 0.7 3.5 0.3 1.8 0.2 1.1 0.3 0.5 0.3
1991 18.7 1.0 5.3 0.7 3.6 0.3 1.7 0.2 1.0 0.3 0.5 0.1
1991-1993 Growth Rate 0.8 (9.0%) (15.2%) (30.6%) (34.0) 2.6 (6.4) 24.7%
1991-1993 Average 4.9% 3.2% 1.4% 0.8%
</TABLE>
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $9.8 $1.4 $2.3 $7.6 $4.3 56.5 1.5x 1.3x 12.7 5.2%
1993 9.8 1.4 2.3 7.6 4.3 56.5 1.5 1.3 6.6 2.6
1992 9.5 1.4 2.4 7.0 3.7 53.2 2.1 1.3 9.7 7.3
1991 9.7 1.2 2.5 6.6 3.6 54.7 1.9 1.3 20.1 13.3.
1991-1993 Growth Rate 0.4 6.6 (2.7) 7.0 8.7%
1991-1993 Average 54.8 1.8x 1.3x 12.1 7.7%
</TABLE>
<PAGE>
S&M COMPANY
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
PER SHARE AND MARKET DATA
<TABLE>
<CAPTION>
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $0.06 $0.00 0.0 $2.1 $0.75-2.00 13.5-36.0x 0.00 - 0.00% 0.35 - 0.94x
1993 0.06 0.00 0.0 2.1 0.75-2.00 13.5-36.0 0.00 - 0.00 3.35 - 0.94
1992 0.12 0.00 0.0 2.0 0.88-1.50 7.3-12.5 0.00 - 0.00 0.43 - 0.74
1991 0.04 0.00 0.0 1.8 1.00-1.75 25.0-43.8 0.00 - 0.00 0.55 - 0.97
1991-1993 Growth Rate 17.9 NA 8.2%
1991-1993 Average 0.0%
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
Dec-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $2.6 -- 34.0%
Total Long-Term Debt 1.7 34.6 22.8
Deferred Taxes 0.1 1.0 0.7
Other L-T Liabilities 0.3 5.0 3.3
Preferred Equity 0.0 0.0 0.0
Common Equity 3.0 59.5 39.3
--------------------------------------------
Total Capitalization $7.7 100.0 100.0%
Less: Cash & Equivalents (0.1)
-------
Adjusted Total
Capitalization $7.6
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
S & M Co
Price/Volume Analysis
"Weekly: November 20, 1992 to April 5, 1994"
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
20-Nov-92 $1.250 $1.125 $1.125 #N/A 100.0%
27-Nov-92 1.250 1.125 1.125 #N/A 100.0%
04-Dec-92 1.250 1.125 1.125 "1,200 " 100.0%
11-Dec-92 1.250 1.125 1.125 400 100.0%
18-Dec-92 1.250 1.125 1.125 #N/A 100.0%
25-Dec-92 1.250 1.125 1.125 #N/A 100.0%
01-Jan-93 1.250 1.125 1.125 100 100.0%
08-Jan-93 1.250 1.125 1.125 100 100.0%
15-Jan-93 1.250 1.125 1.125 #N/A 100.0%
22-Jan-93 1.250 1.125 1.125 #N/A 100.0%
29-Jan-93 1.250 1.125 1.125 #N/A 100.0%
05-Feb-93 1.250 1.000 1.000 #N/A 88.9%
12-Feb-93 1.250 0.875 0.875 200 77.8%
19-Feb-93 1.250 0.750 0.750 "1,000 " 66.7%
26-Feb-93 1.500 0.875 0.875 "4,300 " 77.8%
05-Mar-93 1.500 1.250 1.250 "1,500 " 111.1%
12-Mar-93 1.750 1.250 1.250 "53,600 " 111.1%
19-Mar-93 1.750 1.375 1.375 "10,400 " 122.2%
26-Mar-93 1.875 1.375 1.375 #N/A 122.2%
02-Apr-93 1.875 1.375 1.375 #N/A 122.2%
09-Apr-93 1.875 1.375 1.375 "3,300 " 122.2%
16-Apr-93 1.750 1.250 1.250 "5,600 " 111.1%
23-Apr-93 1.750 1.250 1.250 "1,100 " 111.1%
30-Apr-93 1.750 1.375 1.375 "12,900 " 122.2%
07-May-93 1.750 1.375 1.375 "2,600 " 122.2%
14-May-93 1.500 1.250 1.250 #N/A 111.1%
21-May-93 1.500 1.250 1.250 "1,100 " 111.1%
28-May-93 1.500 1.250 1.250 #N/A 111.1%
04-Jun-93 1.500 1.250 1.250 "6,300 " 111.1%
11-Jun-93 1.500 1.250 1.250 "2,500 " 111.1%
18-Jun-93 1.500 1.250 1.250 600 111.1%
25-Jun-93 1.500 1.250 1.250 "2,000 " 111.1%
02-Jul-93 1.500 1.250 1.250 500 111.1%
09-Jul-93 1.375 1.250 1.250 "2,200 " 111.1%
16-Jul-93 1.375 1.250 1.250 "6,000 " 111.1%
23-Jul-93 1.375 1.250 1.250 "6,400 " 111.1%
30-Jul-93 1.875 1.250 1.250 400 111.1%
06-Aug-93 $1.875 $1.250 $1.250 800 111.1%
13-Aug-93 1.875 0.750 0.750 "9,100 " 66.7%
20-Aug-93 1.250 0.750 0.750 #N/A 66.7%
27-Aug-93 1.250 0.750 0.750 "11,100 " 66.7%
03-Sep-93 1.250 0.750 0.750 #N/A 66.7%
10-Sep-93 1.250 0.750 0.750 #N/A 66.7%
17-Sep-93 1.125 0.750 0.750 "4,000 " 66.7%
24-Sep-93 1.125 0.750 0.750 #N/A 66.7%
01-Oct-93 1.125 0.750 0.750 "1,400 " 66.7%
08-Oct-93 1.125 0.750 0.750 "1,000 " 66.7%
15-Oct-93 1.125 0.750 0.750 500 66.7%
22-Oct-93 1.125 0.750 0.750 #N/A 66.7%
29-Oct-93 1.125 0.750 0.750 "15,300 " 66.7%
05-Nov-93 1.125 0.750 0.750 "4,000 " 66.7%
12-Nov-93 1.125 0.750 0.750 "2,800 " 66.7%
19-Nov-93 1.125 0.750 0.750 "9,400 " 66.7%
26-Nov-93 1.250 0.750 0.750 "1,000 " 66.7%
03-Dec-93 1.250 0.750 0.750 "2,300 " 66.7%
10-Dec-93 1.500 0.750 0.750 "4,600 " 66.7%
17-Dec-93 1.500 0.750 0.750 "20,900 " 66.7%
24-Dec-93 1.375 0.750 0.750 "2,300 " 66.7%
31-Dec-93 1.375 0.875 0.875 "17,400 " 77.8%
07-Jan-94 1.375 0.875 0.875 #N/A 77.8%
14-Jan-94 1.375 0.875 0.875 "5,000 " 77.8%
21-Jan-94 1.375 0.875 0.875 #N/A 77.8%
28-Jan-94 1.375 0.875 0.875 "5,000 " 77.8%
04-Feb-94 1.375 0.875 0.875 #N/A 77.8%
11-Feb-94 1.375 0.875 0.875 500 77.8%
18-Feb-94 1.375 0.875 0.875 "1,000 " 77.8%
25-Feb-94 1.375 0.875 0.875 #N/A 77.8%
04-Mar-94 1.375 0.875 0.875 "11,800 " 77.8%
11-Mar-94 1.375 0.875 0.875 #N/A 77.8%
18-Mar-94 1.375 0.875 0.875 #N/A 77.8%
25-Mar-94 1.438 0.875 0.875 "7,200 " 77.8%
01-Apr-94 1.438 1.000 1.000 #N/A 88.9%
05-Apr-94 1.438 1.000 1.000 #N/A 88.9%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
(vi) 1993 Pre-tax income and net income exclude a loss on disposal of tire
service center location of $42,700.
<PAGE>
TCB CORP.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<PAGE>
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (5-Apr-94) $12.75 Price Earnings Ratio 15.0X 17.2x 17.2x
Shares Outstanding (Dec-1993) 28.945 Price/Book Value Ratio 3.2x 3.2x
Aggregate Market Value $369.1 Price/Cash Flow Ratio 14.1x 14.1x
LTM Ended 12/31/93 Total Value/EBIT 11.7X 11.7X
Latest Fiscal Year End 12/31/93 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 3/17/94 Indicated Dividend Yield 0.00%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $568.7 $37.7 6.6% $33.7 5.9% $34.6 6.1% $21.4 3.8% $3.9 $26.2 $3.1
1993 568.7 37.7 6.6 33.7 5.9 34.6 6.1 21.4 3.8 3.9 26.2 3.1
1992 569.5 37.4 6.6 34.1 6.0 35.6 6.2 22.5 3.9 3.3 25.0 6.8
1991 499.5 30.1 6.0 27.4 5.5 28.1 5.6 17.7 3.5 2.7 19.7 10.3
1991-1993 Growth Rate 6.7% 11.9% 10.9% 11.0% 10.0% 21.7% 15.2% (45.4)%
1991-1993 Average 6.4% 5.8% 6.0% 3.7%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $166.7 $95.1 $15.4 $142.6 $26.1 18.3% NAx 2.9x 47.3% 36.7%
1993 166.7 95.1 15.4 142.6 26.1 18.3 NA 2.9 24.3 19.5
1992 176.9 80.6 16.2 134.7 31.7 23.6 NA1 2.1 28.8 23.2
1991 135.3 72.0 12.9 102.0 11.4 11.2 NA 2.6 53.8 39.1
1991-1993 Growth Rate 11.0% 15.0% 9.5% 18.3% 51.4%
1991-1993 Average 17.7% NAx 2.5X 35.6% 27.3%
</TABLE>
<PAGE>
TBC CORP.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $0.74 $0.00 0.0 $4.0 $10.25-18.25 13.9-24.7x 0.00 - 0.00% 2.55 - 4.53x
1993 0.74 0.00 0.0 4.0 10.25-18.25 13.9-24.7X 0.00 - 0.00 2.55 - 4.53
1992 0.76 0.00 0.0 3.5 9.08-16.00 12.0-21.1 0.00 - 0.00 2.61 - 4.60
1991 0.59 0.00 0.0 3.0 4.94-9.25 8.4-15.8 0.00 - 0.00 1.65 - 3.08
1991-1993 Growth Rate 12.3 NA 15.8%
1991-1993 Average 0.0%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
Dec-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $26.1 -- 18.3%
Total Long-Term Debt 0.0 0.0 0.0
Deferred Taxes 0.0 0.0 0.0
Other L-T Liabilities 0.0 0.0 0.0
Preferred Equity 0.0 0.0 0.0
Common Equity 116.5 100.0 81.7
--------------------------------------------
Total Capitalization $142.6 100.0 100.0%
Less: Cash & Equivalents 0.0
-------
Adjusted Total
Capitalization $142.6
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
TBC Corp
Price/Volume Analysis
"Weekly: November 20, 1992 to April 5, 1994"
20-Nov-92 $13.667 $13.417 $13.583 "208,200 " 100.0%
27-Nov-92 14.500 13.500 14.000 "591,450 " 103.1%
04-Dec-92 14.750 13.833 14.750 "448,050 " 108.6%
11-Dec-92 15.083 13.750 14.000 "793,950 " 103.1%
18-Dec-92 14.250 13.625 13.875 "422,600 " 102.1%
25-Dec-92 14.625 13.750 14.625 "585,700 " 107.7%
01-Jan-93 16.000 14.500 15.750 "468,000 " 116.0%
08-Jan-93 16.250 15.500 15.875 "749,500 " 116.9%
15-Jan-93 16.625 15.750 16.375 "995,000 " 120.6%
22-Jan-93 16.500 16.125 16.375 "244,400 " 120.6%
29-Jan-93 16.375 15.750 16.125 "267,600 " 118.7%
05-Feb-93 16.375 15.750 16.000 "443,800 " 117.8%
12-Feb-93 18.000 15.750 17.750 "801,900 " 130.7%
19-Feb-93 18.000 15.625 16.500 "478,500 " 121.5%
26-Feb-93 17.000 16.375 16.750 "282,100 " 123.3%
05-Mar-93 16.875 16.375 16.625 "334,000 " 122.4%
12-Mar-93 18.125 16.625 18.000 "868,600 " 132.5%
19-Mar-93 18.250 17.625 17.875 "281,900 " 131.6%
26-Mar-93 18.250 17.625 18.000 "302,700 " 132.5%
02-Apr-93 18.000 17.375 17.500 "226,300 " 128.8%
09-Apr-93 18.000 17.250 17.875 "722,600 " 131.6%
16-Apr-93 18.000 17.625 18.000 "296,300 " 132.5%
23-Apr-93 18.250 17.375 17.375 "815,700 " 127.9%
30-Apr-93 17.625 16.375 16.625 "425,600 " 122.4%
07-May-93 17.125 16.375 17.125 "397,800 " 126.1%
14-May-93 17.125 16.125 16.125 "453,800 " 118.7%
21-May-93 16.500 15.750 16.500 "476,000 " 121.5%
28-May-93 17.625 16.375 17.250 "493,500 " 127.0%
04-Jun-93 17.625 15.500 15.750 "1,153,600 " 116.0%
11-Jun-93 14.000 11.625 12.125 "3,959,300 " 89.3%
18-Jun-93 12.125 11.250 11.500 "1,929,400 " 84.7%
25-Jun-93 12.125 11.375 12.000 "927,700 " 88.3%
02-Jul-93 12.625 11.625 12.250 "880,900 " 90.2%
09-Jul-93 13.250 12.000 12.500 "799,300 " 92.0%
16-Jul-93 12.625 12.125 12.500 "288,200 " 92.0%
23-Jul-93 12.500 11.750 12.375 "925,800 " 91.1%
30-Jul-93 12.750 12.125 12.750 "340,500 " 93.9%
06-Aug-93 $13.000 $12.500 $13.000 "478,700 " 95.7%
13-Aug-93 13.125 12.750 13.000 "310,800 " 95.7%
20-Aug-93 13.250 12.875 13.000 "264,300 " 95.7%
27-Aug-93 13.625 13.000 13.625 "423,500 " 100.3%
03-Sep-93 13.625 13.125 13.375 "829,400 " 98.5%
10-Sep-93 13.625 13.250 13.375 "212,700 " 98.5%
17-Sep-93 14.250 13.125 13.875 "832,700 " 102.1%
24-Sep-93 13.875 12.875 13.125 "420,000 " 96.6%
01-Oct-93 13.375 13.000 13.000 "179,600 " 95.7%
08-Oct-93 13.250 12.500 12.500 "786,700 " 92.0%
15-Oct-93 12.750 11.875 12.125 "1,889,900 " 89.3%
22-Oct-93 12.250 11.000 11.500 "936,500 " 84.7%
29-Oct-93 11.750 11.375 11.750 "192,500 " 86.5%
05-Nov-93 11.750 11.250 11.500 "679,900 " 84.7%
12-Nov-93 11.625 11.250 11.500 "812,600 " 84.7%
19-Nov-93 11.625 11.000 11.250 "595,900 " 82.8%
26-Nov-93 11.250 10.375 10.500 "521,300 " 77.3%
03-Dec-93 12.375 10.250 11.625 "580,200 " 85.6%
10-Dec-93 12.000 11.375 12.000 "445,400 " 88.3%
17-Dec-93 12.125 11.625 12.000 "362,000 " 88.3%
24-Dec-93 12.125 11.625 12.125 "283,300 " 89.3%
31-Dec-93 12.500 12.000 12.375 "764,700 " 91.1%
07-Jan-94 12.375 11.625 11.875 "287,600 " 87.4%
14-Jan-94 12.500 11.500 12.250 "575,500 " 90.2%
21-Jan-94 12.625 11.875 12.000 "471,200 " 88.3%
28-Jan-94 12.250 11.250 12.000 "1,095,300 " 88.3%
04-Feb-94 12.250 11.625 12.000 "510,900 " 88.3%
11-Feb-94 12.750 11.875 12.750 "496,600 " 93.9%
18-Feb-94 13.000 12.375 12.875 "909,200 " 94.8%
25-Feb-94 13.500 12.750 13.375 "420,300 " 98.5%
04-Mar-94 13.625 13.000 13.500 "232,600 " 99.4%
11-Mar-94 13.875 13.375 13.625 "372,900 " 100.3%
18-Mar-94 13.625 13.250 13.375 "274,400 " 98.5%
25-Mar-94 13.500 13.000 13.125 "547,200 " 96.6%
01-Apr-94 13.250 12.375 12.750 "319,800 " 93.9%
05-Apr-94 13.000 12.375 12.750 "65,700 " 93.9%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
AUTOZONE INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (5-Apr-94) $54.25 Price Earnings Ratio 36.2X 41.4x 46.0x
Shares Outstanding (Dec-1993) 74.350 Price/Book Value Ratio 9.0x 10.1x
Aggregate Market Value $4,033.5 Price/Cash Flow Ratio 34.8X 39.4x
LTM Ended FEB-1994 Total Value/EBIT 25.7X 28.8X
Latest Fiscal Year End 08/31/93 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 03/29/94 Indicated Dividend Yield 0.00%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993)$1,348.1 $183.3 13.6% $157.7 11.7%$160.5 11.9% $96.7 7.2% $25.6 $115.7 $153.7
1993 1,216.8 162.8 13.4 140.8 11.6 143.2 11.8 86.9 7.1 22.0 102.3 120.6
1992 1,002.3 118.0 11.8 103.7 10.3 104.5 10.4 63.3 6.3 14.3 75.4 70.8
1991 818.0 89.7 11.0 79.3 9.7 72.1 8.8 44.2 5.4 10.3 50.3 41.1
1991-1993 Growth Rate 22.0% 34.7% 33.2% 41.0% 40.3% 46.0% 42.7% 71.2%
1991-1993 Average 12.0% 10.5% 10.3% 6.3%
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1993) $766.4 $86.7 $355.2 $401.6 ($56.3) NMF NAx 1.3x 48.8% 25.7%
1993 696.5 92.3 297.4 326.1 (80.1) NMF NA 1.3 50.0 25.8
1992 501.0 72.3 199.8 236.4 (50.7) NMF NA 1.3 46.2 26.0
1991 398.8 56.9 142.8 212.4 (1.8) NMF 10.9 1.3 42.2 30.1
1991-1993 Growth Rate 32.2% 27.4% 44.3% 23.9% 566.9%
1991-1993 Average NMF 10.9X 1.3X 46.2% 27.3%
</TABLE>
<PAGE>
AUTOZONE
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
PER SHARE AND MARKET DATA
<TABLE>
<CAPTION>
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended Dec-1994) $1.31 $0.00 0.0 $6.0 $38.63-61.50 29.5-46.9x 0.00 - 0.00% 6.40 -10.20x
1993 1.18 0.00 0.0 5.4 33.75-59.00 28.6-50.0X 0.00 - 0.00 6.28 -10.98
1992 0.87 0.00 0.0 3.8 25.13-42.00 28.9-48.3 0.00 - 0.00 6.59 -11.02
1991 0.66 0.00 0.0 3.1 13.13-33.94 19.9-51.4 0.00 - 0.00 4.24 -10.95
1991-1993 Growth Rate 33.7 NA% 31.7%
1991-1993 Average 0.0%
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
FEB-1994 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $0.2 -- 0.0%
Total Long-Term Debt 4.2 0.9 0.9
Deferred Taxes 3.7 0.8 0.8
Other L-T Liabilities 5.7 1.2 1.2
Preferred Equity 0.0 0.0 0.0
Common Equity 448.5 97.1 97.0
--------------------------------------------
Total Capitalization $462.3 100.0 100.0%
Less: Cash & Equivalents (60.7)
-------
Adjusted Total
Capitalization $401.6
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Autozone Inc
Price/Volume Analysis
"Weekly: November 20, 1992 to April 5, 1994"
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
20-Nov-92 $18.438 $18.188 $18.438 "108,800 " 100.0%
27-Nov-92 18.750 18.000 18.688 "462,400 " 101.4%
04-Dec-92 20.000 18.813 20.000 "1,057,600 " 108.5%
11-Dec-92 20.125 18.875 19.063 "920,600 " 103.4%
18-Dec-92 19.000 18.750 18.875 "673,800 " 102.4%
25-Dec-92 19.688 18.750 19.563 "919,000 " 106.1%
01-Jan-93 19.813 18.813 19.625 "934,000 " 106.4%
08-Jan-93 19.750 18.750 19.000 "962,600 " 103.1%
15-Jan-93 19.438 18.938 19.000 "587,400 " 103.1%
22-Jan-93 19.000 17.625 17.875 "1,395,600 " 96.9%
29-Jan-93 18.438 17.313 17.563 "968,600 " 95.3%
05-Feb-93 18.313 16.875 18.063 "2,502,600 " 98.0%
12-Feb-93 18.500 17.500 18.188 "717,200 " 98.6%
19-Feb-93 18.500 17.375 18.313 "779,000 " 99.3%
26-Feb-93 19.125 17.250 18.875 "2,362,600 " 102.4%
05-Mar-93 20.438 19.250 19.750 "2,350,800 " 107.1%
12-Mar-93 20.938 19.688 20.750 "1,227,800 " 112.5%
19-Mar-93 21.438 20.750 21.375 "879,800 " 115.9%
26-Mar-93 21.750 21.000 21.625 "2,353,600 " 117.3%
02-Apr-93 21.875 20.438 20.750 "825,400 " 112.5%
09-Apr-93 20.938 20.000 20.188 "1,219,400 " 109.5%
16-Apr-93 21.875 20.375 21.563 "956,000 " 116.9%
23-Apr-93 21.625 19.813 20.313 "816,200 " 110.2%
30-Apr-93 20.313 19.313 19.438 "1,615,400 " 105.4%
07-May-93 21.313 19.438 20.875 "1,133,600 " 113.2%
14-May-93 21.625 20.625 20.875 "1,086,000 " 113.2%
21-May-93 22.938 20.688 22.813 "1,720,800 " 123.7%
28-May-93 23.688 22.750 23.625 "1,007,600 " 128.1%
04-Jun-93 24.563 23.375 24.125 "967,600 " 130.8%
11-Jun-93 24.188 22.313 23.188 "845,200 " 125.8%
18-Jun-93 23.188 22.000 22.563 "618,800 " 122.4%
25-Jun-93 22.875 21.750 22.188 "581,000 " 120.3%
02-Jul-93 23.938 22.250 23.813 "925,400 " 129.2%
09-Jul-93 24.000 22.875 23.188 "816,200 " 125.8%
16-Jul-93 23.750 23.000 23.188 "583,000 " 125.8%
23-Jul-93 24.375 23.000 23.625 "813,200 " 128.1%
30-Jul-93 24.000 23.500 23.688 "244,800 " 128.5%
06-Aug-93 $24.500 $22.625 $24.188 "784,400 " 131.2%
13-Aug-93 25.750 24.313 25.375 "1,051,800 " 137.6%
20-Aug-93 26.750 24.813 26.750 "1,675,400 " 145.1%
27-Aug-93 27.563 26.000 26.125 "1,535,800 " 141.7%
03-Sep-93 27.688 25.875 27.125 "643,000 " 147.1%
10-Sep-93 27.313 26.375 26.938 "522,600 " 146.1%
17-Sep-93 27.188 26.375 26.875 "564,600 " 145.8%
24-Sep-93 27.438 25.875 25.938 "955,200 " 140.7%
01-Oct-93 26.500 24.688 24.813 "5,757,200 " 134.6%
08-Oct-93 25.750 24.625 25.125 "2,606,800 " 136.3%
15-Oct-93 26.188 25.063 25.688 "864,200 " 139.3%
22-Oct-93 25.688 24.125 25.250 "1,818,000 " 136.9%
29-Oct-93 26.750 25.000 26.625 "951,200 " 144.4%
05-Nov-93 27.563 25.375 26.500 "1,115,000 " 143.7%
12-Nov-93 27.938 26.188 27.750 "794,600 " 150.5%
19-Nov-93 27.750 26.563 26.750 "1,062,000 " 145.1%
26-Nov-93 27.375 26.000 26.875 "609,200 " 145.8%
03-Dec-93 29.250 26.875 29.063 "934,000 " 157.6%
10-Dec-93 29.500 28.813 29.000 "784,000 " 157.3%
17-Dec-93 28.875 27.375 27.500 "1,164,800 " 149.2%
24-Dec-93 28.125 26.875 27.125 "1,212,000 " 147.1%
31-Dec-93 28.625 26.750 28.625 "1,293,200 " 155.3%
07-Jan-94 28.375 26.750 27.313 "1,226,200 " 148.1%
14-Jan-94 27.438 26.688 27.313 "1,808,600 " 148.1%
21-Jan-94 28.000 27.188 27.438 "745,200 " 148.8%
28-Jan-94 28.313 27.188 28.125 "596,000 " 152.5%
04-Feb-94 28.500 27.063 27.250 "953,600 " 147.8%
11-Feb-94 28.125 27.063 28.000 "832,200 " 151.9%
18-Feb-94 28.125 27.313 27.500 "433,000 " 149.2%
25-Feb-94 28.250 27.063 28.063 "1,248,800 " 152.2%
04-Mar-94 29.250 27.625 28.875 "1,418,000 " 156.6%
11-Mar-94 29.875 29.188 29.313 "1,086,000 " 159.0%
18-Mar-94 30.750 29.313 29.813 "1,884,200 " 161.7%
25-Mar-94 29.875 28.375 28.625 "3,993,800 " 155.3%
01-Apr-94 28.750 26.688 27.125 "1,328,800 " 147.1%
05-Apr-94 27.875 26.375 27.875 "1,080,000 " 151.2%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
DISCOUNT AUTO PARTS INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (1-Apr-94) $24.13 Price Earnings Ratio 23.2X 25.7x 26.5x
Shares Outstanding (NOV-1993) 13.952 Price/Book Value Ratio 3.7x 3.8x
Aggregate Market Value 336.6 Price/Cash Flow Ratio 20.8X 20.6x
LTM Ended 11/30/93 Total Value/EBIT 16.7X 18.2X
Latest Fiscal Year End JUN-1993 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 03/29/94 Indicated Dividend Yield 0.00%
</TABLE>
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended NOV-1993) $191.2 $28.6 14.9 $23.8 12.4 $21.1 11.1 $11.5 6.0 $4.8 $16.2 $37.3
1992 176.8 26.4 15.0 21.8 12.3 18.9 10.7 11.9 6.7 4.7 16.3 22.5
1991 141.2 20.3 14.4 16.4 11.6 12.2 8.7 9.8 6.9 3.9 13.7 16.1
1990 108.8 15.8 14.6 12.7 11.6 8.6 7.9 5.6 5.1 3.2 8.8 14.6
1990-1992 Growth Rate 27.5 29.2% 31.2% 48.2% 46.2% 20.9% 36.3% 23.9%
1990-1992 Average 14.6% 11.9% 9.1% 6.3%
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended NOV-1993) $176.9 $36.1 $108.7 $141.7 $51.7 36.5 9.0X 2.2x 19.6 13.7%
1992 159.1 33.8 89.3 113.9 31.1 27.3 7.6 2.0 21.4 20.2
1991 124.8 22.2 71.5 89.4 54.0 60.4 3.9 1.8 20.3 31.0
1990 100.6 20.0 59.3 72.4 44.7 61.7 3.1 2.0 35.0 40.2
1990-1992 Growth Rate 25.8 30.1 22.8 25.4 (16.6)%
1990-1992 Average 49.8 4.9X 1.9X 25.6 30.5%
</TABLE>
<PAGE>
DISCOUNT AUTO PARTS INC.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
PER SHARE AND MARKET DATA
<TABLE>
<CAPTION>
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended NOV-1993) $0.94 $0.00 0.0 $6.4 $20.63-31.00 21.9-33.0x 0.00 - 0.00% 3.20 -4.81x
1992 0.91 0.00 0.0 6.3 20.75-28.13 22.8-30.9 0.00 - 0.00 3.29 -4.46
1991 0.78 0.00 0.0 3.5 0.00-0.00 0.0-0.0 NA - NA 0.00 -0.00
1990 0.56 0.00 0.0 2.8 0.00-0.00 0.0-0.04 NA - NA 0.00 -0.00
1990-1992 Growth Rate 27.5 NA% 50.9%
1990-1992 Average 0.0%
</TABLE>
- --------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
FEB-1994 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $3.4 -- 2.3%
Total Long-Term Debt 56.5 38.6 37.7
Deferred Taxes 0.0 0.0 0.0
Other L-T Liabilities 0.0 0.0 0.0
Preferred Equity 0.0 0.0 0.0
Common Equity 90.0 61.4 60.0
--------------------------------------------
Total Capitalization $149.9 100.0 100.0%
Less: Cash & Equivalents (8.2)
-------
Adjusted Total
Capitalization $141.7
-------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Discount Auto PTS Inc
Price/Volume Analysis
"Weekly: November 18, 1992 to April 1, 1994"
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
20-Nov-92 $25.625 $24.625 $25.500 "47,800 " 100.0%
27-Nov-92 26.500 25.125 26.250 "157,800 " 102.9%
04-Dec-92 28.125 25.875 27.000 "136,500 " 105.9%
11-Dec-92 27.000 24.875 25.000 "167,700 " 98.0%
18-Dec-92 28.125 25.125 27.375 "147,300 " 107.4%
25-Dec-92 27.375 26.125 26.375 "83,000 " 103.4%
01-Jan-93 26.625 25.500 25.625 "143,100 " 100.5%
08-Jan-93 25.875 24.750 24.875 "258,300 " 97.5%
15-Jan-93 24.875 24.125 24.250 "110,700 " 95.1%
22-Jan-93 25.875 23.250 25.375 "228,300 " 99.5%
29-Jan-93 25.750 24.500 25.000 "90,800 " 98.0%
05-Feb-93 27.375 25.625 26.375 "275,800 " 103.4%
12-Feb-93 26.750 25.750 25.750 "84,200 " 101.0%
19-Feb-93 26.000 24.750 25.500 "36,700 " 100.0%
26-Feb-93 25.875 24.250 25.250 "198,300 " 99.0%
05-Mar-93 27.500 25.500 27.500 "120,900 " 107.8%
12-Mar-93 30.375 27.750 30.125 "362,300 " 118.1%
19-Mar-93 31.125 28.375 29.750 "318,600 " 116.7%
26-Mar-93 29.875 28.375 28.500 "129,100 " 111.8%
02-Apr-93 29.125 27.000 27.000 "103,200 " 105.9%
09-Apr-93 27.375 26.625 27.375 "35,500 " 107.4%
16-Apr-93 28.000 27.125 27.500 "55,900 " 107.8%
23-Apr-93 27.750 26.750 26.875 "63,400 " 105.4%
30-Apr-93 27.500 26.625 26.625 "56,100 " 104.4%
07-May-93 28.625 26.500 28.250 "94,000 " 110.8%
14-May-93 29.000 28.375 28.750 "28,600 " 112.7%
21-May-93 29.000 27.625 28.500 "54,100 " 111.8%
28-May-93 29.250 28.625 29.250 "50,500 " 114.7%
04-Jun-93 31.000 28.875 30.625 "76,200 " 120.1%
11-Jun-93 30.750 28.625 28.750 "78,900 " 112.7%
18-Jun-93 28.750 27.250 27.500 "75,200 " 107.8%
25-Jun-93 27.250 26.000 26.375 "69,200 " 103.4%
02-Jul-93 27.125 24.875 25.375 "294,700 " 99.5%
09-Jul-93 25.500 24.875 25.375 "238,200 " 99.5%
16-Jul-93 26.250 25.000 25.500 "105,100 " 100.0%
23-Jul-93 25.375 22.125 23.250 "215,100 " 91.2%
30-Jul-93 25.750 23.250 25.375 "271,100 " 99.5%
06-Aug-93 $26.125 $25.375 $26.125 "39,800 " 102.5%
13-Aug-93 26.250 25.750 26.000 "24,000 " 102.0%
20-Aug-93 26.375 25.625 26.125 "35,700 " 102.5%
27-Aug-93 25.875 25.375 25.625 "43,000 " 100.5%
03-Sep-93 26.500 25.625 26.375 "52,300 " 103.4%
10-Sep-93 26.875 26.250 26.875 "169,500 " 105.4%
17-Sep-93 27.000 25.500 25.500 "132,900 " 100.0%
24-Sep-93 25.500 23.125 23.750 "469,200 " 93.1%
01-Oct-93 24.750 23.625 24.000 "183,700 " 94.1%
08-Oct-93 24.000 22.375 22.625 "110,900 " 88.7%
15-Oct-93 23.625 20.625 23.125 "388,800 " 90.7%
22-Oct-93 24.500 23.000 24.375 "135,600 " 95.6%
29-Oct-93 25.500 24.000 25.500 "88,900 " 100.0%
05-Nov-93 26.000 24.125 24.125 "52,400 " 94.6%
12-Nov-93 24.625 24.000 24.375 "79,600 " 95.6%
19-Nov-93 25.750 24.375 25.625 "112,900 " 100.5%
26-Nov-93 25.500 25.000 25.000 "163,000 " 98.0%
03-Dec-93 26.000 24.875 25.875 "62,300 " 101.5%
10-Dec-93 26.750 25.875 26.625 "35,400 " 104.4%
17-Dec-93 27.375 26.625 27.250 "59,300 " 106.9%
24-Dec-93 28.125 27.250 28.125 "51,900 " 110.3%
31-Dec-93 28.125 27.500 27.500 "28,200 " 107.8%
07-Jan-94 27.500 25.875 26.500 "157,900 " 103.9%
14-Jan-94 26.750 25.875 26.000 "237,400 " 102.0%
21-Jan-94 27.500 26.250 27.500 "51,100 " 107.8%
28-Jan-94 27.375 26.500 27.000 "67,600 " 105.9%
04-Feb-94 27.625 26.125 26.125 "96,700 " 102.5%
11-Feb-94 26.000 25.250 25.625 "22,600 " 100.5%
18-Feb-94 25.625 23.250 23.625 "159,600 " 92.6%
25-Feb-94 24.375 23.500 24.250 "73,800 " 95.1%
04-Mar-94 25.000 23.875 24.000 "147,200 " 94.1%
11-Mar-94 26.000 24.125 25.750 "47,900 " 101.0%
18-Mar-94 26.750 25.375 25.875 "224,600 " 101.5%
25-Mar-94 26.125 25.000 25.250 "113,800 " 99.0%
01-Apr-94 25.125 23.875 24.125 "70,500 " 94.6%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
HI-LO AUTOMOTIVE INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1994E DEC-1993 1993
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (12Apr-94) $11.88 Price Earnings Ratio 14.8X 18.6x 18.6x
Shares Outstanding (DEC-1993) 10.543 Price/Book Value Ratio 1.2x 1.2x
Aggregate Market Value 125.2 Price/Cash Flow Ratio 11.0X 11.0x
LTM Ended DEC-1993 Total Value/EBIT 12.9X 12.9X
Latest Fiscal Year End DEC-1993 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 03/29/94 Indicated Dividend Yield 0.00%
</TABLE>
- -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $205.2 $17.5 8.5 $12.5 6.1 $10.7 5.2 $6.7 3.3 $5.0 $11.4 $19.2
1993 205.2 17.5 8.5 12.5 6.1 10.7 5.2 6.7 3.3 5.0 11.4 19.2
1992 187.2 21.7 11.6 16.6 8.9 13.6 7.3 8.7 4.6 5.1 13.5 12.9
1991 155.7 20.0 12.8 15.6 10.0 10.9 7.0 6.9 4.4 4.3 13.0 5.6
1991-1993 Growth Rate 14.8 (6.3)% (10.5)% (0.9)% (1.4)% 7.3% (6.2) 85.1
1991-1993 Average 11.0% 8.3% 6.5% 4.1%
</TABLE>
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $154.6 $54.2 $44.7 $136.2 $30.6 22.5 7.0X 3.6x 18.4 13.2%
1993 154.6 54.2 44.7 136.2 30.6 22.5 7.0 3.6 9.8 7.5
1992 139.5 51.4 32.4 120.4 40.3 33.4 5.6 3.6 14.8 12.0
1991 122.5 41.2 24.7 103.9 31.4 30.2 3.3 3.1 15.5 14.6
1991-1993 Growth Rate 12.3 14.7 34.6 14.5 (1.2)%
1991-1993 Average 28.7 5.3X 3.4X 13.4 11.3%
</TABLE>
<PAGE>
HI-LO AUTOMOTIVE INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $0.64 $0.00 0.0 $9.7 $13.00-21.50 20.3-33.6x 0.00 - 0.00% 1.35 -2.23x
1993 0.64 0.00 0.0 9.7 13.00-21.50 20.3-33.6 0.00 - 0.00 1.35 -2.23
1992 0.89 0.00 0.0 7.9 9.38-15.25 10.5-17.1 0.00 - 0.00 1.19 -1.94
1991 0.80 0.00 0.0 7.9 9.38-15.25 11.7-19.1 0.00 - 0.00 1.19 -1.94
1991-1993 Growth Rate (10.6) NA% 10.7%
1991-1993 Average 0.0%
</TABLE>
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
DEC-1994 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $3.9 -- 2.8%
Total Long-Term Debt 28.4 21.2 20.6
Deferred Taxes 3.7 2.8 2.7
Other L-T Liabilities 0.1 0.0 0.0
Preferred Equity 0.0 0.0 0.0
Common Equity 101.8 76.0 73.8
--------------------------------------------
Total Capitalization $137.9 100.0 100.0%
Less: Cash & Equivalents (1.7)
-------
Adjusted Total
Capitalization $136.2
-------
</TABLE>
<PAGE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
Hi-Lo Automotive Inc
Price/Volume Analysis
"Weekly: November 18, 1992 to April 1, 1994"
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 11/20/92
20-Nov-92 $19.750 $18.625 $18.875 "33,900 " 100.0%
27-Nov-92 19.750 18.375 19.750 "70,100 " 104.6%
04-Dec-92 21.500 19.250 21.250 "115,500 "112.6%
11-Dec-92 21.500 20.750 20.875 "61,300 " 110.6%
18-Dec-92 21.000 19.375 19.625 "54,100 " 104.0%
25-Dec-92 19.875 18.750 19.750 "18,700 " 104.6%
01-Jan-93 20.250 19.750 20.250 "34,600 " 107.3%
08-Jan-93 20.125 19.750 20.000 "37,400 " 106.0%
15-Jan-93 20.250 19.625 20.000 "83,400 " 106.0%
22-Jan-93 20.125 18.625 18.875 "62,800 " 100.0%
29-Jan-93 20.125 18.250 19.875 "109,300" 105.3%
05-Feb-93 20.750 19.625 20.250 "43,900 " 107.3%
12-Feb-93 20.250 19.250 19.250 "1,517,200 "102.0%
19-Feb-93 19.375 17.375 17.875 "444,500 "94.7%
26-Feb-93 18.000 16.750 18.000 "160,900 "95.4%
05-Mar-93 18.750 18.125 18.250 "279,500 "96.7%
12-Mar-93 18.500 17.750 18.000 "119,500 "95.4%
19-Mar-93 18.250 17.500 17.625 "79,000 " 93.4%
26-Mar-93 17.625 14.500 15.500 "467,900 "82.1%
02-Apr-93 17.250 15.375 16.250 "274,400 "86.1%
09-Apr-93 16.625 15.625 16.125 "220,400 "85.4%
16-Apr-93 17.375 16.000 17.000 "123,300 "90.1%
23-Apr-93 17.000 14.875 14.875 "322,300 "78.8%
30-Apr-93 15.250 14.000 14.125 "199,600 "74.8%
07-May-93 14.875 13.375 14.750 "386,100 "78.1%
14-May-93 15.375 14.875 15.125 "151,100 "80.1%
21-May-93 15.250 14.000 14.000 "171,200 "74.2%
28-May-93 15.875 13.500 15.250 "270,900 "80.8%
04-Jun-93 15.875 15.000 15.625 "107,800 "82.8%
11-Jun-93 15.500 14.750 14.750 "182,400 "78.1%
18-Jun-93 14.250 12.375 12.625 "441,900 "66.9%
25-Jun-93 12.875 11.625 11.750 "200,700 "62.3%
02-Jul-93 11.875 9.500 10.250 "904,700 "54.3%
09-Jul-93 11.000 10.000 10.875 "202,300 "57.6%
16-Jul-93 11.750 11.000 11.375 "142,600 "60.3%
23-Jul-93 11.500 10.500 11.125 "373,200 "58.9%
30-Jul-93 11.875 10.875 11.000 "86,400 " 58.3%
06-Aug-93 $12.375 $11.000 $12.375 "377,000 "65.6%
13-Aug-93 12.375 11.750 11.875 "168,200 "62.9%
20-Aug-93 12.125 11.750 12.125 "78,000 " 64.2%
27-Aug-93 13.000 12.000 12.750 "160,800 "67.5%
03-Sep-93 13.750 12.750 13.250 "149,500 "70.2%
10-Sep-93 13.625 12.625 12.875 "38,700 " 68.2%
17-Sep-93 12.750 11.875 12.125 "57,500 " 64.2%
24-Sep-93 12.250 11.750 11.750 "71,000 " 62.3%
01-Oct-93 12.750 11.750 12.625 "88,800 " 66.9%
08-Oct-93 12.500 10.250 11.375 "461,700 "60.3%
15-Oct-93 11.625 10.500 10.750 "80,000 " 57.0%
22-Oct-93 10.750 10.125 10.250 "64,300 " 54.3%
29-Oct-93 11.375 10.125 11.125 "161,500 "58.9%
05-Nov-93 11.625 10.625 10.750 "181,100 "57.0%
12-Nov-93 11.125 10.750 10.750 "253,000 "57.0%
19-Nov-93 11.000 10.500 10.500 "127,700 "55.6%
26-Nov-93 10.750 10.000 10.625 "513,100 "56.3%
03-Dec-93 10.750 10.375 10.500 "131,100 "55.6%
10-Dec-93 11.000 10.375 10.500 "180,600 "55.6%
17-Dec-93 10.500 10.125 10.375 "149,200 "55.0%
24-Dec-93 10.375 10.000 10.250 "279,300 "54.3%
31-Dec-93 10.250 9.625 9.875 "250,900 "52.3%
07-Jan-94 10.125 9.625 9.750 "168,700 "51.7%
14-Jan-94 11.125 9.250 11.125 "467,300 "58.9%
21-Jan-94 11.375 10.500 10.750 "236,300 "57.0%
28-Jan-94 11.375 10.625 11.000 "200,900 "58.3%
04-Feb-94 11.125 10.500 10.500 "127,000 "55.6%
11-Feb-94 10.750 9.625 9.750 "259,500 "51.7%
18-Feb-94 11.250 9.500 10.625 "176,500 "56.3%
25-Feb-94 11.000 10.500 10.750 "156,200 "57.0%
04-Mar-94 12.375 11.000 12.375 "825,500 "65.6%
11-Mar-94 12.875 12.375 12.375 "382,100 "65.6%
18-Mar-94 13.625 12.500 13.375 "355,300 "70.9%
25-Mar-94 13.500 12.875 12.875 "185,100 "68.2%
01-Apr-94 13.000 11.750 11.875 "180,900 "62.9%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
O REILLY AUTOMOTIVE INC
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
VALUATION DATA
Fiscal LTM Fiscal
1993E DEC-1993 1992
-------------------------------
<S> <C> <S> <C> <C> <C>
Price Per Share (1-Apr-94) $28.00 Price Earnings Ratio 23.3X 28.0x 28.0x
Shares Outstanding (DEC-1993) 8.235 Price/Book Value Ratio 4.0x 4.0x
Aggregate Market Value $230.6 Price/Cash Flow Ratio 20.4X 20.4x
LTM Ended DEC-1993 Total Value/EBIT 18.5X 18.5X
Latest Fiscal Year End 12/31/92 Indicated Annual Dividend $0.00 $0.00
Earnings Forecast as of 03/29/94 Indicated Dividend Yield 0.00%
</TABLE>
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
OPERATING DATA
Operating EBITDA EBIT PreTax PreTax Net Net Deprec& Cash Flow Capital
Revenues EBITDA Margin EBIT Margin Income Margin Income Margin Amort. Operations Expenditures
--------- ------ ------ ---- ------ ------ ------ ------ ------ ------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $137.2 $15.3 11.2% $12.5 9.1% $12.8 9.3% $8.2 6.0% $2.8 $11.3 $8.5
1993 137.2 15.3 11.2 12.5 9.1 12.8 9.3 8.2 6.0 2.8 11.3 8.5
1992 110.1 12.2 11.1 10.0 9.1 10.1 9.2 6.4 5.8 2.1 8.4 4.5
1991 94.9 10.8 11.3 8.8 9.3 8.6 9.1 5.5 5.7 2.0 7.5 2.7
1991-1993 Growth Rate 20.2% 19.3% 19.5% 21.8% 22.9% 18.5% 22.6% 78.1%
1991-1993 Average 11.2% 9.2% 9.2% 5.8%
</TABLE>
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
BALANCE SHEET AND RATIOS BALANCE SHEET DATA SELECTED FINANCIAL STATISTICS
Total Working Net Total Capital Net Net Debt/ EBIT/ Current EBIT/Avg Return Avg
Assets Capital PP&E (net of cash) Debt Net Cap Interest Ratio Net Cap Com. Equity
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $73.1 $41.2 $17.0 $47.5 ($10.8) NMF NA 3.9x 52.8% 28.5%
1993 73.1 41.2 17.0 47.5 (10.8) NMF NA 3.9 27.3 18.9
1992 58.9 15.5 11.4 44.2 14.4 32.6% NA 1.9 24.8 24.8
1991 49.5 13.4 9.1 36.6 13.4 36.7 50.5x 2.1 48.0 47.6
1991-1993 Growth Rate 21.5% 75.1% 36.7% 13.9% NA%
1991-1993 Average 34.7% 50.5x 2.6x 33.4% 30.4%
</TABLE>
O REILLY AUTOMOTIVE INC.
HISTORICAL FINANCIAL SUMMARY
(dollar amounts in millions except share data)
<TABLE>
<CAPTION>
PER SHARE AND MARKET DATA
Earnings Dividends Payout % Book Val. 52 Wk. Price Range P/E Range Yield Range Market/Book Range
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LTM (Ended DEC-1993) $1.00 $0.00 0.0 $7.0 $26.50-35.25 26.5-35.3x 0.00 - 0.00% 3.78 -5.02x
1993 1.00 0.00 0.0 7.0 0.00-0.00 0.0-0.0 NA - NA 0.00 -0.00
1992 0.84 0.00 0.0 4.0 0.00-0.00 0.0-0.0 NA - NA 0.00 -0.00
1991 0.74 0.00 0.0 3.1 0.00-0.005 0.0-0.0 NA - NA 0.00 -0.00
1991-1993 Growth Rate 16.2 NA% 49.9%
1991-1993 Average 0.0%
</TABLE>
- ----------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITALIZATION
% of Total Capitalization
--------------------------
Excluding Including
DEC-1993 S-T Debt S-T Debt
--------------------------------------------
<S> <C> <C> <C>
Short Term Debt $0.5 -- 0.8%
Total Long-Term Debt 0.7 1.2 1.2
Deferred Taxes 0.2 0.3 0.3
Other L-T Liabilities 0.4 0.6 0.6
Preferred Equity 0.0 0.0 0.0
Common Equity 57.8 97.9 97.1
--------------------------------------------
Total Capitalization $59.6 100.0 100.0%
Less: Cash & Equivalents (12.0)
--------
Adjusted Total
Capitalization $47.5
--------
</TABLE>
[GRAPH APPEARS HERE]
PaineWebber Incorporated
O Reilly Automotive Inc
Price/Volume Analysis
"Weekly: April 17, 1993 to April 1, 1994"
Total Close
High Low Closing Trading as a % of
Date Price Price Price Volume 04/23/93
23-Apr-93 $19.500 $18.750 $19.250 "2,061,000 " 100.0%
30-Apr-93 19.250 18.250 18.750 "1,038,000 " 97.4%
07-May-93 19.750 18.500 19.250 "360,600 " 100.0%
14-May-93 22.250 19.250 21.875 "380,100 " 113.6%
21-May-93 22.250 20.500 20.750 "235,700 " 107.8%
28-May-93 21.250 20.500 21.250 "82,200 " 110.4%
04-Jun-93 22.500 20.500 22.000 "157,000 " 114.3%
11-Jun-93 23.250 22.000 23.000 "313,800 " 119.5%
18-Jun-93 23.250 22.000 23.000 "170,700 " 119.5%
25-Jun-93 23.500 22.750 23.500 "99,500 " 122.1%
02-Jul-93 25.000 22.750 23.500 "103,500 " 122.1%
09-Jul-93 24.000 23.000 24.000 "16,400 " 124.7%
16-Jul-93 24.000 23.500 23.500 "17,200 " 122.1%
23-Jul-93 24.000 23.250 23.500 "62,900 " 122.1%
30-Jul-93 24.250 23.500 23.750 "54,800 " 123.4%
06-Aug-93 23.750 23.250 23.250 "111,500 " 120.8%
13-Aug-93 24.000 23.000 24.000 "134,500 " 124.7%
20-Aug-93 24.000 23.250 23.250 "61,000 " 120.8%
27-Aug-93 23.750 23.250 23.750 "145,500 " 123.4%
03-Sep-93 23.750 22.500 23.250 "98,000 " 120.8%
10-Sep-93 23.250 22.250 23.250 "63,800 " 120.8%
17-Sep-93 23.500 22.750 23.500 "27,000 " 122.1%
24-Sep-93 25.000 23.000 24.250 "128,800 " 126.0%
01-Oct-93 24.750 23.000 23.750 "249,700 " 123.4%
08-Oct-93 24.750 23.500 24.750 "54,300 " 128.6%
15-Oct-93 28.500 24.000 28.500 "91,300 " 148.1%
22-Oct-93 32.500 28.500 29.500 "158,000 " 153.2%
29-Oct-93 31.500 28.750 30.750 "80,300 " 159.7%
05-Nov-93 31.750 29.250 29.750 "78,100 " 154.5%
12-Nov-93 30.500 29.250 29.500 "49,900 " 153.2%
19-Nov-93 29.500 28.375 28.500 "29,000 " 148.1%
26-Nov-93 28.250 27.500 28.250 "14,700 " 146.8%
03-Dec-93 30.250 27.500 29.750 "70,500 " 154.5%
10-Dec-93 31.000 29.250 30.000 "18,900 " 155.8%
17-Dec-93 30.000 28.750 29.500 "95,900 " 153.2%
24-Dec-93 29.500 28.250 28.250 "19,800 " 146.8%
31-Dec-93 29.000 28.250 29.000 "6,100 " 150.6%
07-Jan-94 $30.500 $28.500 $30.250 "92,900 " 157.1%
14-Jan-94 33.500 30.000 33.000 "186,800 "171.4%
21-Jan-94 33.750 31.750 32.250 "114,700 "167.5%
28-Jan-94 32.250 31.750 32.250 "19,900 " 167.5%
04-Feb-94 33.000 31.750 32.500 "68,700 " 168.8%
11-Feb-94 35.250 32.500 34.500 "55,300 " 179.2%
18-Feb-94 34.250 31.500 31.500 "61,900 " 163.6%
25-Feb-94 32.250 29.000 29.500 "328,000 "153.2%
04-Mar-94 30.000 27.750 28.750 "194,000 "149.4%
11-Mar-94 29.250 28.500 28.500 "34,900 " 148.1%
18-Mar-94 29.250 28.500 29.250 "73,000 " 151.9%
25-Mar-94 29.250 28.500 29.000 "18,000 " 150.6%
01-Apr-94 29.500 27.250 28.000 "39,400 " 145.5%
FOOTNOTES
(i) EBITDA, EBIT, and Pretax Income exclude Special Items
(ii)Income Available to Common excludes Extraordinary Items & Discontinued
Operations
(iii) Net Interest Expense=Gross Interest Expense-Interest Income-Capitalized
Interest
(iv) Cash Flow=Income Available to Common + Depreciation, Depletion, &
Amortization + Deferred Taxes - Unremitted earnings +/- any other non-cash items
(v) Financials have been adjusted for stock splits where applicable
<PAGE>
PART VI
DETERMINATION OF EXERCISE PRICE
<PAGE>
DETERMINATION OF EXERCISE PRICE
<TABLE>
<CAPTION>
Implied Stock Price Analysis Implied Stock Price Analysis
ESTIMATED
EPS ASSUMING P/E MULTIPLE RANGE OF: ASSUMING P/E MULTIPLE RANGE OF:
______________________________ _____________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
FY2004 14 16 18 20 22 FY2004 24 26 28 30 32
______ ______
$2.55 $2.55
</TABLE>
<TABLE>
<CAPTION>
Average of Central Area Average of Central Area
Multiple of Exercise Price/Current Market Price Multiple of Exercise Price/Current Market Price
Implied Ten Year Return to Shareholders Implied Ten Year Return to Shareholders
ESTIMATED
EPS ASSUMING P/E MULTIPLE RANGE OF: ASSUMING P/E MULTIPLE RANGE OF:
______________________________ _____________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
FY2004 14 16 18 20 22 FY2004 24 26 28 30 32
______ ______
$2.55 $2.55
</TABLE>
Average of Central Area Average of Central Area
Multiples of Exercise Price/Current Market Price
Stock Price Exercise Price
$12.50
$13.00
$13.50
$14.00
$14.50
$15.00
$15.50
$16.00
$16.50
<PAGE>
PART VII
HYPOTHETICAL EFFECT ON CAPITALIZATION
<PAGE>
HYPOTHETICAL EFFECT ON CAPITITALIZATION
Assumed Market Price Triggering Percentage
Exercise Price Common Equivalent of New Shares Issued
Pro Forma
As of Exercise
12/31/93 Adjustments of Rights
Total Debt
Shareholders' Equity
Total Capitalization
Shares Outstanding
Increase in Shares Outstanding
New (%) Owned by Acquiror
(%) Dilution to Acquiror
<PAGE>
PART VIII
SELECTED UNSOLICITED TAKEOVER BIDS
<PAGE>
<TABLE>
<CAPTION>
DATE
TARGET NAME ACQUIROR NAME ANNOUNCED
<S> <C> <C>
International Standards Group UMI Inc 03/24/94
Mark Controls Corp Tyco International Ltd 03/21/94
Centex Telemanagement Inc MFS Communications Co Inc 03/15/94
Kemper Corp General Electric Capital Corp 03/14/94
Grumman Corp Northrop Corp 03/10/94
Texfi Industries Inc Mentmore Holdings Corp 03/10/94
Sandy Corp Westcott Communications Inc 03/07/94
Crestmont Financial Corp Undisclosed Acquiror 02/02/94
WLR Foods Inc Tyson Foods Inc 01/24/94
Public Storage Properties VIII Storage Equities Inc 01/14/94
Provident Bancorp,Cincinnati Undisclosed Acquiror 01/07/94
CalFed Inc Golden West Financial Corp 01/06/94
R.H. Macy & Co Federated Department Stores 01/02/94
Mark Controls Corp Crane Co 01/03/94
America West Airlines Inc Investor Group 12/27/93
Fibreboard Corp CRP 3000 Inc 12/20/93
Katy Industries Inc Investor Group 11/30/93
Sunshine Jr Stores Inc MFL Holdings Inc 11/29/93
Esquire Radio & Electronics Steel Partners II 11/26/93
Integrated Resources Inc-Cert Penguin Group LP 11/23/93
ARI Holdings Inc LMI Insurance Co 11/19/93
Electromedics Inc Medtronic Inc 11/19/93
Maxum Health Corp DLG Financial Corp 11/18/93
Minor League Heroes LP Skylands Park Management Inc 11/15/93
Green Point Svgs Bk, Flushing Republic New York Corp 11/05/93
Medical Care America Inc Surgical Care Affiliates Inc 10/25/93
Candlewood Bank & Trust Co NewMil Bancorp 10/21/93
First City Industries Inc Alpha Acquisition Corp 10/19/93
Mylan Laboratories Inc Undisclosed Acquiror 10/19/93
King City Federal Savings Bank First Banks Inc 10/18/93
Nostalgia Network Inc International Family Ent Inc 10/08/93
America West Airlines Inc Undisclosed Acquiror 09/29/93
United Capital Leasing Corp Lease Acquisition Corp 09/22/93
Nostalgia Network Inc Concept Communications Inc 09/21/93
AngeLase Inc(Angeion Corp) Cardiac Albation Systems 09/20/93
Digital Communications Assoc DCA Holdings Inc 09/20/93
Paramount Communications QVC Network Inc 09/20/93
Deprenyl Animal Health Inc Safety Corp 09/14/93
Mayflower Group Inc IMR Fund LP 09/13/93
Katy Industries Inc Rosecliff Pensler Partners LP 09/02/93
Nutri/System Inc Physicians Weight Loss Centers 08/18/93
Termiflex Corp Investor 08/17/93
Constellation Bancorp The Bank of New York Co Inc 08/12/93
Rodman & Renshaw Capital Group Undisclosed Acquiror 08/09/93
Phibro Energy USA Inc-St Rose Enjet Inc 08/04/93
Fieldcrest Cannon Inc Bibb Co Inc 07/28/93
Sunbelt Nursery Group Inc General Host Corp 07/27/93
Rodman & Renshaw Capital Group Josephthal Lyon & Ross 07/26/93
Alter Sales Co Group Hammer SA 07/23/93
Dolphin Titan International Offshore Rigs LLC 07/21/93
Evergreen Bancorp KeyCorp,Albany,New York(OLD) 06/22/93
Western Resources Inc-Oklahoma ONEOK Inc 06/22/93
Kemper Securities Inc Undisclosed Acquiror 05/28/93
Amoskeag Co(Dumaines Trust) Springs Industries Inc 05/27/93
Fieldcrest Cannon Inc Springs Industries Inc 05/27/93
Dover Electrical System Delmarva Power & Light 05/26/93
Accuhealth Inc-Infusion Ops Undisclosed Acquiror 05/25/93
Restaurant Enterprises Group Investor Group 05/20/93
Weldotron Corp SFM Corp 05/17/93
Magellan Petroleum Corp Sagusa Inc(Sagasco Holdings) 05/12/93
Pratt & Whitney(United Techs) Stuyvesant Van 05/07/93
Rochester Community Svgs Bk,NY Undisclosed Acquiror 05/05/93
Nutri/System Inc Investor Group 04/29/93
BioEnergy International Undisclosed Acquiror 04/28/93
Tri-National Development Corp Associated Capital & Equities 04/13/93
Allied Research Corp First Allied Corp 04/12/93
Mark Controls Corp Investor Group 04/09/93
West Coast Bancorp Western Bank,Coos Bay,Oregon 04/08/93
Cap First Mtg-Loan Pipeline Continental Savings America 04/07/93
Forum Group Inc Forum/Classic LP 04/05/93
Home-Stake Oil & Gas Co Investor Group 03/24/93
LCP National Plastics Buffton Corp 03/22/93
Lifetime Corp Abbey Healthcare Group Inc 03/22/93
Prudential-Bache En III-P13 GBK Acquisition Corp 03/19/93
First National Bank, Huntsville Undisclosed Acquiror 03/15/93
Forum Group Inc Dalfort(Hyatt Air/Hyatt Corp) 03/15/93
PSI Resources Inc IPALCO Enterprises Inc 03/15/93
Commodity Exchange,New York Coffee Sugar and Cocoa 03/10/93
Shenango Inc (Boggs Corp) Employee Stock Ownership Plan 03/09/93
Pet Inc-Whitman's Chocolates Investor Group 03/08/93
In-Store Advertising Investor Group 03/02/93
Forum Group Inc Multicare Cos Inc 02/25/93
Prudential Securities Inc-West Parker & Parsley Petroleum Co 02/24/93
Alco International Group Inc Scottsdale Group 02/17/93
SCI Television Inc Investor 02/16/93
Home Shopping Network Inc Liberty Media Corp 02/12/93
Nobel Insurance Ltd-US Assets Undisclosed Acquiror 02/01/93
Puroflow-Ultra Dynamics Div Undisclosed Acquiror 01/29/93
Kasler Corp DW Holdings Inc 01/22/93
Peoples Westchester Savings Bk Investor Group 01/19/93
Southern Educators Life Ins Co United Insurance Cos 01/15/93
Schwinn Bicycle Co Giant Manufacturing Co Ltd 01/07/93
Sunshine Jr Stores Inc Investor 12/24/92
Riddell Sports-Certain Assets Sport Supply Group Inc 12/17/92
Roadmaster Corp Undisclosed Acquiror 12/09/92
Home-Stake Oil & Gas Co Home-Stake Royalty Corp 12/08/92
ERC Industries Inc Undisclosed Acquiror 12/02/92
Morse Shoe Inc May Department Stores Co 11/30/92
Schwinn Bicycle Co Dore Enterprises 11/30/92
Austin McDaniel Corp Baurys Corp 11/27/92
Hydro Flame Corp Atwood Industries Inc 11/17/92
MEI Diversified Incorporated IMR Fund LP 11/17/92
Macmillan Inc,Official Investor Group 11/10/92
Home Federal Savings Bank First Banks Inc 10/23/92
Skandia America (Skandia US) John Head & Partners LP 10/22/92
Consolidated Capital Gordon Realty Inc 10/16/92
Forum Group Inc Investor Group 10/16/92
San Francisco Giants Investor Group 10/13/92
The Circle K Corp Commonwealth Oil Refining Co 10/09/92
RehabCare Corp Continental Medical Systems 10/08/92
Nendels Corp Investor 10/06/92
Command Credit Corp Ventura Capital Partners I LP 10/04/92
Victory Markets-Distn Business Investor Group 10/02/92
Ameriwood Industries Intl Corp Willametta K Day Trust 10/01/92
Continental Airlines Hldgs Inc Investor Group 09/30/92
Credit Bureau Reports Inc Ventura Capital Partners I LP 09/24/92
American Learning Corp JW Acquisition Corp 09/21/92
Undisclosed Oil and Gas Pptys HarCor Energy Inc 09/21/92
Continental Airlines Hldgs Inc Investor Group 09/16/92
Regency Cruises Inc Castle Harlan Partners II LP 09/16/92
Braniff International Airlines Investor 08/11/92
Center Banks Inc NBT Bancorp Inc 08/04/92
Fretter Inc Investor Group 07/29/92
National Heritage WelCare International Inc 07/24/92
Durr-Fillauer Medical Inc Bergen Brunswig Corp 07/07/92
Hadson Energy Resources Corp Wiser Oil Co 07/01/92
First City Bancorp of Texas Investor Group 06/23/92
Petrolane Gas Service LP Investor Group 06/16/92
North American National Corp Loyal American Life Insurance 06/01/92
Orion Pictures Corp MGM/UA Communications Co 05/12/92
Orion Pictures Corp Republic Pictures Corp 05/07/92
Script Systems Inc InfoMed Inc 05/04/92
Napa Valley Bancorp Westamerica Bancorp,CA 05/01/92
Alpha Industries Inc M/A-COM Inc 04/22/92
Star Banc Corp Fifth Third Bancorp,Cincinnati 04/16/92
Orion Pictures Corp Savoy Pictures Entertainment 04/09/92
Greene-Shaw Electronics Jaco Electronics Inc 03/30/92
Laser Biotech Inc Laser Medical Technology Inc 03/30/92
Source: Securities Data Company, Inc.
<PAGE>
PART IX
SELECTED REDEEMED SHAREHOLDERS' RIGHTS PLANS
<PAGE>
SELECTED REDEEMED SHAREHOLDERS' RIGHTS PLANS
(Last Twelve Months)
COMPANY EFFECTIVE DATE PLAN ESTABLISHED PRICE
TJX Cos. Inc. February 17, 1994 November 1986 $0.01 per share
BJ Services Co January 14, 1994 July 1990 $0.01 per right
Computalog Ltd. May 31, 1993 May 1990 $0.01 per right
Eaton Corporation May 10, 1993 September 1985 $0.01 per right
Source: Nexis News Service and Dow Jones News Retrieval
<PAGE>
PART X
PRICING AND TRADING INFORMATION ON SELECTED
COMPANIES ADOPTING SHAREHOLDERS' RIGHTS PLANS
<PAGE>
PRICING AND TRADING INFORMATION ON SELECTED COMPANIES ADOPTING
SHAREHOLDER'S RIGHTS PLANS - SUMMARY
</TABLE>
<TABLE>
<CAPTION>
AVERAGE PERCENTAGE CHANGE AVERAGE PERCENTAGE CHANGE
OF STOCK PRICE FROM: OF S&P 400 INDEX FROM:
20 BUS. DATE OF 20 BUS. DATE OF
DAYS PRIOR ANNOUNCEMENT DAYS PRIOR ANNOUNCEMENT
TO DATE OF TO 20 TO DATE OF TO 20
NUMBER AVERAGE ANNOUNCEMENT BUS. DAYS ANNOUNCEMENT BUS. DAYS
OF EXERCISE/ MEDIAN TO DATE OF AFTER DATE TO DATE OF AFTER DATE OF
DATE COMPANIES MARKET % CHANGE ANNOUNCEMENT ANNOUNCEMENT ANNOUNCEMENT ANNOUNCEMENT
<S> <C> <C> <C> <C> <C> <C> <C>
1-Jan-93 36 5.08 x Absolute 1.72% (2.23%) 0.51% 0.30%
31-Dec-93 Net (a) 1.21% (2.53%)
1-Jan-92 47 4.81 x Absolute 0.93% (0.41%) (0.22%) (0.37%)
31-Dec-92 Net (a) 1.15% (0.04%)
1-Jan-91 99 4.29 x Absolute 0.00% 4.27% 0.60% 0.82%
31-Dec-91 Net (a) 1.82% 5.61%
1-Jan-90 152 4.58 x Absolute (2.44%) (2.02%) 0.09% (0.18%)
31-Dec-90 Net (a) (2.36%) 6.48%
1-Jan-89 329 4.21 x (b) Absolute 1.47% 0.39% 2.38% 1.62%
31-Dec-89 Net (a) (0.37%) 8.76%
1-Jan-88 306 4.44 x (b) Absolute 3.07% 1.49% 1.90% 1.98%
31-Dec-88 Net (a) 1.92% 1.68%
</TABLE>
(a) As compared to the S&P 400 Industrial Index.
(b) Average Exercise/Market price does not include certain companies which were
deemed to be large outlying computations.
<PAGE>
PRICING AND TRADING INFORMATION ON SELECTED COMPANIES ADOPTING
SHAREHOLDERS' RIGHTS PLANS (4/2/86 - 12/31/93)
<TABLE>
<CAPTION>
Closing Price
___________________________________________________________________
A B C
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Ecology Corp. 12/8/93 NA $535.39 $5.63 $538.82 $4.50 $544.88 NA 0.64 NA (20.00) 1.12 (21.12)
Cephalon Inc. 11/22/93 $15.50 $530.77 17.75 533.12 16.75 537.31 14.52 0.44 14.07 (5.63) 0.79 (6.42)
Carolina First Corp. 11/15/93 14.75 534.46 13.50 537.17 13.00 538.47 (8.47) 0.51 (8.98) (3.70) 0.24 (3.95)
Acme Electric Corp. 11/15/93 9.38 534.46 8.75 537.17 8.63 538.47 (6.67) 0.51 (7.17) (1.43) 0.24 (1.67)
Carson Pirie Scott&Co. 11/8/93 NA 521.82 11.75 530.33 12.88 538.54 NA 1.63 NA 9.57 1.55 8.03
Hamilton Financial Svs 10/28/93 8.00 516.72 7.13 535.87 6.88 535.97(10.94) 3.71 (14.64) (3.51) 0.02 (3.53)
American Exploration Co. 10/1/93 1.44 521.83 1.44 519.56 1.50 535.49 0.00 (0.44) 0.44 4.31 3.07 1.25
Span-America
Medical Systems 9/22/93 5.75 521.55 5.75 513.43 9.13 531.41 0.00 (1.56) 1.56 58.70 3.50 55.19
Education
Alternatives Inc. 9/16/93 34.50 518.81 34.25 516.95 43.50 528.99 (0.72) (0.36) (0.37) 27.01 2.33 24.68
Centex
Telemanagement Inc. 9/15/93 8.00 517.86 6.75 519.58 7.25 522.43(15.63) 0.33 (15.96) 7.41 0.55 6.86
Qualmed Inc. 9/9/93 11.38 506.38 14.38 515.17 14.13 518.77 26.37 1.74 24.64 (1.74) 0.70 (2.44)
Intergraph Corp. 9/9/93 8.75 506.38 11.13 515.17 10.00 516.72 27.14 1.74 25.41 (10.11) 0.30 (10.41)
Dr. Pepper/Seven-Up 9/2/93 17.88 506.57 19.25 522.17 20.13 516.72 7.69 3.08 4.61 4.55 (1.04) 5.59
Rodman & Renshaw
Capital 8/23/93 7.13 509.36 7.88 517.39 9.13 511.38 10.53 1.58 8.95 15.87 (1.16) 17.03
Mercer International
Inc. 8/18/93 10.38 507.61 11.00 517.86 10.25 519.58 6.02 2.02 4.00 (6.82) 0.33 (7.15)
HPSC Inc. 8/11/93 2.88 504.36 3.00 508.63 3.19 524.47 4.35 0.85 3.50 6.27 3.11 3.15
BMC West Corp. 8/3/93 15.25 513.31 18.75 508.55 18.25 517.39 22.95 (0.93) 23.88 (2.67) 1.74 (4.40)
BWIP Holding Inc. 7/30/93 25.00 508.09 24.25 506.95 26.00 521.86 (3.00) (0.22) (2.78) 7.22 2.94 4.28
Vencor Inc. 7/21/93 27.75 511.67 27.25 507.61 23.00 507.22 (1.80) (0.79) (1.01) (15.60)(0.08) (15.52)
Costco Wholesale Corp. 7/14/93 16.88 511.03 16.50 513.31 16.00 508.55 (2.22) 0.45 (2.67) (3.03)(0.93) (2.10)
Healthtrust Inc. 7/13/93 17.75 507.41 20.00 510.29 20.25 509.45 12.68 0.57 12.11 1.25 (0.16) 1.41
Levitz Furniture Inc. 6/30/93 NA 514.61 NA 514.26 11.50 507.91 NA (0.07) NA NA (1.23) NA
Davstar Industries Ltd. 6/29/93 6.63 514.99 6.75 515.11 5.75 505.86 1.89 0.02 1.86 (14.81)(1.80) (13.02)
Eagle Bancshares Inc. 5/17/93 17.25 507.47 16.75 509.64 15.75 516.71 (2.90) 0.43 (3.33) (5.97) 1.39 (7.36)
Bank of New York
Company Inc. 5/3/93 57.38 501.85 53.75 504.70 54.75 521.75 (6.32) 0.57 (6.89) 1.86 3.38 (1.52)
America Online Inc. 5/3/93 26.75 504.36 24.25 498.96 30.13 505.94 (9.35) (1.07) (8.28) 24.23 1.40 22.83
Leslie Fay Cos Inc. 4/29/93 5.75 518.94 3.00 505.05 3.88 496.48(47.83) (2.68)(45.15) 29.17 (1.70) 30.86
Cascade Natural Gas 4/23/93 24.25 509.24 24.63 517.62 25.38 501.85 1.55 1.65 (0.10) 3.05 (3.05) 6.09
Milestone Pptys Inc. 3/31/93 4.63 521.77 4.75 517.69 4.50 505.99 2.70 (0.78) 3.48 (5.26)(2.26) (3.00)
Research Frontiers Inc. 2/12/93 8.63 504.42 9.38 513.10 9.88 513.84 8.70 1.72 6.97 5.33 0.14 5.19
Tyler Corp. Del. 1/29/93 4.50 499.48 5.25 508.56 5.00 497.54 16.67 1.82 14.85 (4.76)(2.17) (2.60)
Westmoreland Coal Co 1/28/93 10.00 499.48 12.88 508.30 12.00 499.21 28.75 1.77 26.98 (6.80)(1.79) (5.01)
Offshore Pipelines Inc. 1/28/93 10.38 499.48 10.00 508.30 9.25 499.21 (3.61) 1.77 (5.38) (7.50)(1.79) (5.71)
Advo Inc. 1/27/93 17.28 500.95 17.84 507.58 17.52 500.08 3.24 1.32 1.92 (1.79)(1.48) (0.32)
Rexene Corp. 1/26/93 3.88 505.60 3.75 510.26 3.38 513.10 (3.23) 0.92 (4.15) (10.00) 0.56 (10.56)
Bally Gaming Intl Inc. 1/22/93 13.25 507.46 14.38 504.42 12.88 517.12 8.49 (0.60) 9.09 (10.43) 2.52 (12.95)
Eskimo Pie Corp. 1/21/93 16.75 507.46 22.00 503.59 19.63 515.16 31.34 (0.76) 32.11 (10.80) 2.30 (13.09)
Diagnostek Inc. 12/31/92 7.38 508.18 8.25 507.46 7.38 501.19 11.86 (0.14) 12.01 (10.61)(1.24) (9.37)
Hologic Inc. 12/22/92 5.88 504.59 5.13 513.05 6.25 501.40(12.77) 1.68 (14.44) 21.95 (2.27) 24.22
PSI Resources Inc. 12/11/92 18.88 500.68 18.50 508.18 20.00 507.46 (1.99) 1.50 (3.48) 8.11 (0.14) 8.25
Esterline Technologies
Corp. 12/9/92 10.63 496.75 11.13 511.22 12.00 510.48 4.71 2.91 1.79 7.87 (0.14) 8.01
Cimco Inc. 12/5/92 8.25 491.80 N/A N/A 8.25 512.34 N/A N/A N/A N/A N/A N/A
Purolator Products Co. 12/1/92 N/A 496.13 15.00 505.45 15.25 514.60 N/A 1.88 N/A 1.67 1.81 (0.14)
Terminal Data Corp. 11/23/92 3.75 492.68 4.00 498.50 3.13 506.71 6.67 1.18 5.49 (21.88) 1.65 (23.52)
Oceaneering Intl Inc. 11/20/92 17.25 490.76 14.25 500.68 12.88 509.51(17.39) 2.02 (19.41) (9.65) 1.76 (11.41)
Amre Inc 11/13/92 4.88 485.96 4.75 495.91 5.75 504.39 (2.56) 2.05 (4.61) 21.05 1.71 19.34
St Paul Bancorp Inc 10/26/92 20.38 477.00 20.13 490.56 21.38 493.59 (1.23) 2.84 (4.07) 6.21 0.62 5.59
Centigram Comm. Corp 10/20/92 7.25 490.49 8.50 486.44 10.25 491.28 17.24 (0.83) 18.07 20.59 0.99 19.59
North American Mtg Co 10/19/92 13.50 489.96 14.38 485.94 15.75 491.28 6.48 (0.82) 7.30 9.57 1.10 8.47
Minerals Technologies
Inc 10/16/92 N/A 487.23 N/A 481.74 17.00 490.84 N/A (1.13) N/A N/A 1.89 N/A
Lifetime Corp 9/30/92 14.25 495.86 12.50 490.49 12.13 486.44(12.28) (1.08)(11.20) (3.00)(0.83) (2.17)
Rehabcare Corp 9/21/92 7.75 489.61 8.50 498.91 9.00 476.68 9.68 1.90 7.78 5.88 (4.46) 10.34
Recognition Equip Inc 9/18/92 9.38 487.72 11.25 499.94 9.50 478.06 20.00 2.51 17.49 (15.56)(4.38) (11.18)
Tecumseh Prods Co 8/30/92 59.00 491.97 60.50 487.72 60.00 498.91 2.54 (0.86) 3.41 (0.83) 2.29 (3.12)
American Funeral
Svcs Corp 8/12/92 11.25 483.31 12.25 490.33 14.25 489.61 8.89 1.45 7.44 16.33 (0.15) 16.47
Liberty Bancorp Inc.
DE 8/9/92 16.00 485.61 16.00 491.63 15.75 487.27 0.00 1.24 (1.24) (1.56)(0.89) (0.68)
Dycom Inds Inc 8/1/92 4.00 490.19 4.75 498.11 4.25 482.29 18.75 1.62 17.13 (10.53)(3.18) (7.35)
Concurrent Computer
Corp. 7/31/92 2.00 485.94 2.13 498.11 2.75 491.26 6.25 2.50 3.75 29.41 (1.38) 30.79
Rio Algom Ltd 7/22/92 13.13 483.64 14.19 481.91 14.50 491.97 8.10 (0.36) 8.46 2.20 2.09 0.11
James River Corp Va 6/28/92 21.00 484.64 20.25 474.86 20.00 485.26 (3.57) (2.02) (1.55) (1.23) 2.19 (3.42)
BankWorcester Corp 6/23/92 13.75 490.90 11.25 476.14 13.75 486.62(18.18) (3.01)(15.18) 22.22 2.20 20.02
Republic Automotive
PTS Inc 6/18/92 7.75 492.47 7.50 472.33 6.88 481.07 (3.23) (4.09) 0.86 (8.33) 1.85 (10.18)
Hook-Superx Inc 6/4/92 NA 484.06 13.00 489.57 10.88 475.92 NA 1.14 NA (16.35) (2.79) (13.56)
Cooker Restaurant Corp 5/27/92 17.50 492.68 15.50 487.45 14.50 481.44(11.43) (1.06)(10.37) (6.45) (1.23) (5.22)
Equitable Iowa Cos 4/30/92 26.63 482.02 28.25 492.36 NA 490.24 6.10 2.15 3.96 NA (0.43) N/A
PHP Healthcare Corp 4/10/92 19.13 489.15 17.25 482.02 17.50 492.36 (9.80) (1.46)(8.35) 1.45 2.15 (0.70)
Clothestime 3/27/92 11.50 481.54 9.63 480.33 10.50 495.44(16.30) (0.25)(16.05) 9.09 3.15 5.95
Picturetel Corp 3/25/92 44.88 484.10 44.75 485.28 35.88 491.73 (0.28) 0.24 (0.52) (19.83) 1.33 (21.16)
Quadralogic
Technologies 3/17/92 7.88 494.42 7.13 487.93 7.38 484.34 (9.52) (1.31) (8.21) 3.51 (0.74) 4.24
Polymedica Inds Inc 3/13/92 NA 489.86 12.25 483.15 10.25 477.10 NA (1.37) NA (16.33) (1.25) (15.07)
Unum Corp 3/13/92 36.94 489.86 37.25 483.15 34.75 477.10 0.84 (1.37) 2.21 (6.71) (1.25) (5.46)
Dayton Hudson Corp 3/11/92 70.00 492.45 66.88 480.63 62.25 480.15 (4.46) (2.40) (2.06) (6.92) (0.10) (6.82)
Immune Response Corp 2/26/92 35.75 492.61 28.63 494.42 27.00 487.93(19.93) 0.37 (20.30) (5.68) (1.31) (4.36)
Indiana Federal Corp 2/26/92 16.00 492.61 17.00 494.42 16.75 487.93 6.25 0.37 5.88 (1.47) (1.31) (0.16)
Iowa Ill Gas & Elec Co 2/25/92 24.50 492.88 24.75 488.17 24.88 483.80 1.02 (0.96) 1.98 0.51 (0.90) 1.40
Rowan Cos Inc 2/25/92 5.75 492.88 6.25 488.17 5.75 483.80 8.70 (0.96) 9.65 (8.00) (0.90) (7.10)
Integrated Device
Tech Inc 2/18/92 5.63 486.47 7.25 483.91 6.25 481.82 28.89 (0.53) 29.42 (13.79) (0.43) (13.36)
Firstier Finl Inc 2/17/92 30.13 492.48 30.00 491.00 30.94 481.82 (0.41) (0.30) (0.11) 3.13 (1.87) 5.00
Mattel Inc 2/7/92 31.25 498.15 33.00 489.59 33.25 492.45 5.60 (1.72) 7.32 0.76 0.58 0.17
Berlitz Intl Inc 2/5/92 19.63 496.70 19.50 492.88 19.50 488.17 (0.64) (0.77) 0.13 0.00 (0.96) 0.96
Ikos Sys Inc 1/27/92 1.50 493.46 2.31 492.51 3.06 491.00 54.20 (0.19) 54.39 32.43 (0.31) 32.73
Trans Finl Bancorp Inc 1/20/92 16.00 492.72 15.50 495.14 14.75 492.51 (3.13) 0.49 (3.62) (4.84) (0.53) (4.31)
Van Dorn Co 1/15/92 11.88 476.81 17.63 499.27 18.00 492.64 48.42 4.71 43.71 2.13 (1.33) 3.46
ICF Intl Inc (CLASS A) 1/13/92 7.00 470.59 8.50 491.69 10.50 486.98 21.43 4.48 16.94 23.53 (0.96) 24.49
Ku Energy Corp 12/27/91 26.63 446.75 27.50 479.39 24.75 496.70 3.29 7.31 (4.02) (10.00) 3.61 (13.61)
Hanna M A Co 12/24/91 22.25 463.91 21.00 470.59 20.50 491.69 (5.62) 1.44 (7.06) (2.38) 4.48 (6.86)
Borland Intl Inc 12/20/91 73.50 442.42 73.50 455.98 80.75 494.52 0.00 3.06 (3.06) 9.86 8.45 1.41
Guaranty Natl Corp New 12/20/91 13.63 442.42 13.63 455.98 15.50 494.52 0.00 3.06 (3.06) 13.76 8.45 5.31
Sanifill Inc 12/13/91 22.88 443.89 14.00 452.77 15.50 493.26(38.80) 2.00(40.80) 10.71 8.94 1.77
MBIA Inc 12/12/91 42.25 443.89 45.00 448.80 48.25 492.72 6.51 1.11 5.40 7.22 9.79 (2.56)
DPL Inc 12/3/91 23.88 468.35 25.38 449.02 25.13 467.45 6.28 (4.13)10.41 (0.99) 4.10 (5.09)
Topps Company Inc 12/2/91 14.50 467.37 14.00 449.84 16.75 467.45 (3.45) (3.75) 0.30 19.64 3.91 15.73
Florida Progress Corp 11/21/91 43.75 461.48 45.25 448.21 45.13 444.53 3.43 (2.88) 6.30 (0.28) (0.82) 0.54
Cleveland Cliffs Inc 11/19/91 34.88 463.60 35.63 447.66 34.25 445.36 2.15 (3.44) 5.59 (3.86) (0.51) (3.35)
Arctic Alaska
Fisheries Corp 11/15/91 7.00 454.37 8.38 450.59 8.50 444.90 19.64 (0.83)20.47 1.49 (1.26) 2.76
CMS/Data Corp 11/8/91 2.75 464.80 1.63 462.76 2.75 444.04(40.91) (0.44)(40.47) 69.23 (4.05) 73.28
IES Inds Inc 11/6/91 28.00 464.17 27.88 459.71 27.13 445.83 (0.45) (0.96) 0.51 (2.69) (3.02) 0.33
Bolar Pharmaceutical
Inc 11/1/91 7.38 450.58 6.38 461.48 5.63 448.21 (13.56) 2.42 (15.98) (11.76) (2.88) (8.89)
Laserscope 10/31/91 7.25 450.58 7.13 462.95 7.75 446.51 (1.72) 2.75 (4.47) 8.77 (3.55) 12.32
Banta Corp. 10/29/91 26.63 445.37 25.75 462.61 26.75 454.27 (3.29) 3.87 (7.16) 3.88 (1.80) 5.69
Digital Microwave Corp 10/24/91 9.00 450.59 9.50 455.73 11.50 468.35 5.56 1.14 4.41 21.05 2.77 18.28
Synergen Inc 10/24/91 42.50 450.59 46.33 455.73 59.88 468.35 9.02 1.14 7.88 29.23 2.77 26.46
American President
Cos Ltd 10/22/91 35.38 458.49 41.88 459.08 43.00 462.85 18.37 0.13 18.25 2.69 0.82 1.87
Ketema Inc 10/15/91 10.75 458.50 10.63 462.40 10.25 460.49 (1.16) 0.85 (2.01) (3.53) (0.41) (3.12)
Xilinx Inc 10/4/91 27.13 454.66 28.25 450.59 26.00 455.73 4.15 (0.90) 5.04 (7.96) 1.14 (9.11)
K Tron Intl Inc 10/3/91 8.00 454.66 8.13 454.03 8.25 459.21 1.56 (0.14) 1.70 1.54 1.14 0.40
Medical Imaging
Ctrs Amer 10/2/91 9.63 459.40 5.13 458.49 3.88 459.08 (46.75) (0.20)(46.56)(24.39) 0.13 (24.52)
Wicat Sys Inc 9/27/91 3.38 462.08 3.38 456.45 3.31 464.17 0.00 (1.22) 1.22 (1.84) 1.69 (3.53)
Foundation Health Corp 9/27/91 25.13 456.45 22.00 462.08 23.00 464.17 (12.44) 1.23 (13.67) 4.55 0.45 4.09
Wicat Sys Inc 9/27/91 3.38 456.45 3.38 462.08 3.31 464.17 0.00 1.23 (1.23) (1.84) 0.45 (2.29)
Greenwich
Pharmaceuticals 9/25/91 8.00 462.31 7.50 458.50 8.50 462.40 (6.25) (0.82) (5.43) 13.33 0.85 12.48
Merry Go Round
Enterprises 9/20/91 14.63 459.47 14.25 470.56 12.87 449.60 (2.56) 2.41 (4.98) (9.68) (4.45) (5.23)
Carrington Labs Inc 9/19/91 11.50 470.56 11.75 459.41 13.38 445.37 2.17 (2.37) 4.54 13.83 (3.06) 16.89
Carrington Labs Inc 9/19/91 11.75 459.41 11.50 470.56 13.37 445.37 (2.13) 2.43 (4.55) 16.26 (5.35) 21.61
Informix Corp 9/17/91 6.19 471.86 6.50 457.08 9.38 448.54 5.04 (3.13) 8.17 44.23 (1.87) 46.10
Informix Corp 9/17/91 6.50 457.08 6.19 471.86 9.37 448.54 (4.80) 3.23 (8.03) 51.42 (4.94) 56.36
Eastern Co 9/16/91 11.25 457.35 11.00 467.59 11.25 448.54 (2.22) 2.24 (4.46) 2.27 (4.07) 6.35
General Re Corp 9/11/91 89.50 456.65 87.00 465.10 88.50 459.86 (2.79) 1.85 (4.64) 1.72 (1.13) 2.85
Lattice Semiconductor 9/11/91 10.38 465.10 11.25 456.65 10.50 459.86 8.43 (1.82) 10.25 (6.67) 0.70 (7.37)
Arctco Inc 9/5/91 9.38 457.93 9.25 462.31 9.38 458.50 (1.33) 0.96 (2.29) 1.35 (0.82) 2.18
California Amplifier
Inc 9/5/91 2.25 457.93 2.75 462.31 3.00 458.50 22.22 0.96 21.27 9.09 (0.82) 9.92
Arctco Inc 9/5/91 9.25 462.31 9.38 457.93 9.37 458.50 1.35 (0.95) 2.30 (0.05) 0.12 (0.18)
California Amplifier Inc 9/5/91 2.75 462.31 2.25 457.93 3.00 458.50 (18.18) (0.95)(17.23) 33.33 0.12 33.21
Hancock Fabrics Inc 8/30/91 21.88 470.56 22.63 461.09 20.87 459.41 3.43 (2.01) 5.44 (7.76) (0.36) (7.39)
Smithfield Cos Inc 8/29/91 8.25 472.01 8.00 461.09 8.75 458.84 (3.03) (2.31) (0.72) 9.38 (0.49) 9.86
Gentex Corp 8/19/91 9.13 447.28 9.50 461.20 9.50 461.21 4.11 3.11 1.00 0.00 0.00 (0.00)
Marquest Med Prods Inc 8/8/91 12.00 463.92 14.00 458.36 10.00 471.86 16.67 (1.20) 17.87 (28.57) 2.95 (31.52)
Oakwood Homes Corp 8/8/91 13.75 463.92 13.50 458.36 13.75 471.86 (1.82) (1.20) (0.62) 1.85 2.95 (1.09)
Wellman Inc 8/6/91 24.13 465.60 26.50 454.70 24.13 468.45 9.84 (2.34) 12.19 (8.96) 3.02 (11.99)
Medical Care Intl Inc 7/25/91 58.75 454.01 57.50 446.19 64.50 463.00 (2.13) (1.72) (0.41) 12.17 3.77 8.41
Southwestern Pub Svc Co 7/23/91 29.38 452.05 28.75 445.30 29.75 461.22 (2.13) (1.49) (0.63) 3.48 3.58 (0.10)
Pinkertons Inc New 7/12/91 28.75 453.65 27.00 450.67 27.75 461.82 (6.09) (0.66) (5.43) 2.78 2.47 0.30
First Interstate Iowa
Inc 7/11/91 5.63 449.55 5.63 450.67 5.63 462.47 0.00 0.25 (0.25) 0.00 2.62 (2.62)
Valley Res Inc 6/18/91 11.63 451.18 10.88 456.60 11.87 451.20 (6.45) 1.20 (7.65) 9.15 (1.18) 10.33
Nellcor Inc 6/11/91 19.75 453.91 18.88 448.31 20.00 450.37 (4.43) (1.23) (3.20) 5.96 0.46 5.50
Allied Resh Corp 6/8/91 12.38 451.79 11.00 447.28 15.00 450.37 (11.11) (1.00)(10.11) 36.36 0.69 35.67
Solitron Devices Inc 5/29/91 1.38 456.60 2.25 456.60 1.50 451.18 63.64 0.00 63.64 (33.33) (1.19) (32.15)
Datascope Corp 5/22/91 63.50 448.31 61.25 451.51 65.25 453.91 (3.54) 0.71 (4.26) 6.53 0.53 6.00
Franklin First
Finl Corp 5/16/91 9.88 443.23 10.00 449.86 11.25 458.92 1.27 1.50 (0.23) 12.50 2.01 10.49
Boston Technology Inc 5/9/91 4.44 456.60 4.19 456.19 3.50 456.60 (5.63) (0.09) (5.54) (16.43) 0.09 (16.52)
Smithfield Foods Inc 5/8/91 20.50 450.00 19.50 461.13 22.50 455.68 (4.88) 2.47 (7.35) 15.38 (1.18) 16.57
Investors Svgs Corp Minn 5/7/91 10.88 448.13 9.00 463.12 10.75 449.92 (17.24) 3.35 (20.59) 19.44 (2.85) 22.29
Reynolds & Reynolds Co 5/6/91 20.88 451.41 21.38 459.87 20.87 449.92 2.40 1.87 0.52 (2.36) (2.16) (0.20)
Shared Med Sys Corp 5/1/91 20.25 451.07 18.50 447.40 20.75 447.28 (8.64) (0.81) (7.83) 12.16 (0.03) 12.19
Bancorp Miss Inc 4/23/91 22.00 452.99 22.00 448.74 22.50 449.45 0.00 (0.94) 0.94 2.27 0.16 2.11
Intervoice Inc 4/23/91 14.25 452.99 14.75 448.74 14.50 449.45 3.51 (0.94) 4.45 (1.69) 0.16 (1.85)
Software Pubg Corp 4/23/91 20.75 452.99 21.25 448.74 22.25 449.45 2.41 (0.94) 3.35 4.71 0.16 4.55
Telecom Corp 4/23/91 1.25 452.99 1.13 448.74 1.25 449.45 (10.00) (0.94)(9.06) 11.11 0.16 10.95
<PAGE>
Caere Corp 4/17/91 23.13 463.12 15.75 444.21 20.75 448.13 (31.89) (4.08)(27.81) 31.75 0.88 30.86
Continental Bk Corp 4/17/91 13.75 463.12 11.63 444.21 13.87 448.13 (15.45) (4.08)(11.37) 19.31 0.88 18.43
Lubys Cafeterias Inc 4/16/91 19.00 444.63 20.38 459.87 19.38 451.41 7.24 3.43 3.81 (4.91) (1.84) (3.07)
Lubys Cafeterias Inc 4/16/91 20.38 459.87 19.00 444.63 19.37 451.41 (6.75) (3.31) (3.43) 1.95 1.52 0.42
Bytex Corp 4/12/91 12.50 451.12 10.75 435.75 14.50 451.51 (14.00) (3.41)(10.59) 34.88 3.62 31.27
City Hldgs Co 4/4/91 15.00 449.84 14.50 444.11 15.00 454.30 (3.33) 1.27) (2.06) 3.45 2.29 1.15
Instron Corporation 4/3/91 10.88 448.74 9.88 444.35 11.12 452.99 (9.20) (0.98) (8.22) 12.61 1.94 10.66
Xytronyx Inc. 4/2/91 15.38 447.21 19.63 449.82 18.81 445.19 27.64 0.58 27.06 (4.13) (1.03) (3.10)
Bt Financial Corp 3/27/91 14.25 444.63 14.25 447.30 14.38 459.87 0.00 0.60 (0.60) 0.88 2.81 (1.93)
CPC Intl Inc. 3/19/91 83.25 436.58 78.63 434.88 88.25 459.87 (5.56) (0.39) (5.17) 12.24 5.75 6.50
Continental Med Sys Inc. 3/11/91 11.00 385.67 11.00 390.35 11.50 395.65 0.00 1.21 (1.21) 4.55 1.36 3.19
Southdown Inc. 3/4/91 15.63 410.71 15.50 437.60 17.88 439.64 (0.80) 6.55 (7.35) 15.32 0.47 14.86
Ameron Inc. 3/1/91 45.63 438.58 41.25 423.79 44.00 434.77 (9.59) (3.37) (6.22) 6.67 2.59 4.08
Cumberland Federal
Bancorp 2/26/91 9.50 429.98 9.75 422.64 9.75 441.60 2.63 (1.71) 4.34 0.00 4.49 (4.49)
Public Svc Co Colo 2/26/91 21.75 396.59 22.75 429.98 22.63 434.88 4.60 8.42 (3.82) (0.55) 1.14 (1.69)
HBO & Co. 2/22/91 5.38 396.58 6.88 432.57 7.13 435.75 27.91 9.08 18.83 3.64 0.74 2.90
Ambase Corp. 2/19/91 0.31 386.11 0.69 436.58 1.13 434.88 119.81 13.07 106.74 63.52 (0.39) 63.91
Constellation Bancorp 2/19/91 7.75 386.11 8.50 436.58 7.50 434.88 9.68 13.07 (3.39)(11.76) (0.39) (11.38)
Marsh & McLennan
Cos Inc. 2/19/91 73.25 386.11 76.63 436.58 79.25 434.88 4.61 13.07 (8.46) 3.43 (0.39) 3.82
Stoneridge Res Inc. 2/15/91 3.88 390.48 5.00 435.43 4.00 444.11 29.03 11.51 17.52 (20.00) 1.99 (21.99)
TSI Inc. Minn 2/12/91 12.25 368.53 15.50 430.76 17.00 439.68 26.53 16.89 9.64 9.68 2.07 7.61
Franklin Elec Inc. 2/11/91 9.25 366.64 11.25 434.57 11.19 443.48 21.62 18.53 3.09 (0.55) 2.05 (2.60)
Silicon Graphics Inc. 2/1/91 26.75 375.97 33.00 405.10 40.00 438.58 23.36 7.75 15.62 21.21 8.26 12.95
Immunex Corp. 1/31/91 35.88 377.18 33.75 406.53 48.00 435.00 (5.92) 7.78 (13.70) 42.22 7.00 35.22
E Town Corp. 1/24/91 24.33 384.37 24.50 395.22 23.50 431.51 0.70 2.82 (2.12) (4.08) 9.18 (13.26)
Exabyte Corp. 1/24/91 13.00 384.37 17.13 395.22 20.75 431.51 31.73 2.82 28.91 21.17 9.18 11.99
Tecumseh Products Co. 1/23/91 80.00 387.09 80.00 389.67 86.00 432.01 0.00 0.67 (0.67) 7.50 10.87 (3.37)
Collins Food
International 1/22/91 7.50 386.11 8.06 383.02 9.37 434.57 7.51 (0.80) 8.31 16.21 13.46 2.75
Cabot Corp. 1/21/91 28.38 385.94 28.00 388.74 32.75 435.43 (1.32) 0.73 (2.05) 16.96 12.01 4.95
Fabricland Inc. 1/21/91 12.50 385.94 13.63 388.74 14.25 435.43 9.00 0.73 8.27 4.59 12.01 (7.42)
Manufacturers Natl Corp. 1/18/91 45.25 387.95 45.13 390.48 54.50 435.43 (0.28) 0.65 (0.93) 20.78 11.51 9.26
National Data Corp. 1/18/91 11.25 387.93 11.00 390.48 9.50 435.43 (2.22) 0.66 (2.88)(13.64) 11.51 (25.15)
Puget Sound Pwr
& Lt Co. 1/15/91 20.63 386.06 20.50 368.53 21.38 430.76 (0.61) (4.54) 3.93 4.27 16.89 (12.62)
First Coml Corp. 1/8/91 16.25 381.98 15.00 369.16 16.00 414.26 (7.69) (3.36) (4.34) 6.67 12.22 (5.55)
Jacor Comm Inc. 12/31/90 1.88 380.05 2.25 387.42 2.38 396.73 20.00 1.94 18.06 5.56 2.40 3.15
First Intst Bancorp 12/20/90 19.88 370.68 26.00 386.00 22.63 385.97 30.82 4.13 26.68 (12.98) (0.01) (12.97)
Jacobs Engr Group Inc. 12/20/90 22.38 370.68 26.00 386.00 24.25 385.97 16.20 4.13 12.07 (6.73) (0.01) (6.72)
National Cmnty
Banks Inc. 12/19/90 12.75 370.68 16.25 385.99 15.75 372.30 27.45 4.13 23.32 (3.08) (3.55) 0.47
First Un Corp. 12/18/90 14.25 396.66 17.00 386.06 13.75 368.53 19.30 (2.67) 21.97 (19.12) (4.54) (14.58)
Oklahoma Gas & Elec Co. 12/11/90 38.50 371.69 39.38 381.98 37.50 369.16 2.27 2.77 (0.50) (4.76) (3.36) (1.41)
Cellular Inc. 12/10/90 8.25 373.35 8.50 384.88 9.25 369.64 3.03 3.09 (0.06) 8.82 (3.96) 12.78
LG&E Energy Corp. 12/5/90 39.63 358.15 41.50 385.33 40.00 383.02 4.73 7.59 (2.86) (3.61) (0.60) (3.01)
Comstock Resources Inc. 12/4/90 3.25 364.97 3.75 381.93 3.63 387.42 15.38 4.65 10.74 (3.33) 1.44 (4.77)
Stratus Computer 12/4/90 19.63 364.97 23.50 381.93 23.13 387.42 19.75 4.65 15.10 (1.60) 1.44 (3.03)
Oracle Sys Corp. 12/3/90 5.88 368.44 8.50 380.05 7.88 387.42 44.68 3.15 41.53 (7.35) 1.94 (9.29)
Hallwood Rlty
Partners LP 11/30/90 6.50 364.85 5.75 377.92 5.00 385.26 (11.54) 3.58 (15.12)(13.04) 1.94 (14.99)
Pioneer Finl Svcs Inc. 11/30/90 11.00 364.85 5.50 377.92 6.25 385.26 (50.00) 3.58 (53.58) 13.64 1.94 11.69
Allied Prods Corp. Del 11/21/90 3.38 367.61 4.25 370.68 3.38 385.99 25.93 0.84 25.09 (20.59) 4.13 (24.72)
Fleet Norstar
Finl Group 11/21/90 10.25 367.61 10.13 370.68 11.63 385.99 (1.22) 0.84 (2.05) 14.81 4.13 10.68
Homeowners Group Inc. 11/21/90 5.50 367.61 5.13 370.68 5.00 385.99 (6.82) 0.84 (7.65) (2.44) 4.13 (6.57)
Ruddick Corp. 11/15/90 21.44 358.86 21.00 371.23 21.63 385.42 (2.04) 3.45 (5.49) 2.98 3.82 (0.85)
Hecla Mng Co. 11/9/90 7.88 351.52 7.13 367.11 7.38 383.70 (9.52) 4.44 (13.96) 3.51 4.52 (1.01)
Melamine Chems Inc. 11/5/90 8.38 351.52 6.50 367.11 6.50 383.70 (22.39) 4.44 (26.82) 0.00 4.52 (4.52)
Excel Bancorp Inc.
Quincy MA 10/25/90 3.38 355.10 3.00 364.84 2.88 370.68 (11.11) 2.74 (13.85) (4.17) 1.60 (5.77)
Team Inc. 10/24/90 11.25 359.99 10.00 367.61 9.13 370.68 (11.11) 2.12 (13.23) (8.75) 0.84 (9.59)
Kennametal Inc. 10/23/90 28.13 363.73 26.75 367.19 27.38 369.66 (4.89) 0.95 (5.84) 2.34 0.67 1.66
Fabri Ctrs Amer Inc. 10/22/90 11.92 359.29 10.83 369.89 13.08 374.31 (9.10) 2.95 (12.05) 20.77 1.19 19.57
Landmark Bancshares
Corp. 10/22/90 8.25 359.29 5.75 369.89 5.38 374.31 (30.30) 2.95 (33.25) (6.52) 1.19 (7.72)
Apogee Enterprises Inc. 10/19/90 15.25 367.10 16.00 367.42 16.50 371.05 4.92 0.09 4.83 3.13 0.99 2.14
Nevada Pwr Co. 10/19/90 21.75 367.10 21.88 367.42 22.00 371.05 0.57 0.09 0.49 0.57 0.99 (0.42)
INB Finl Corp. 10/16/90 17.25 376.71 16.50 350.09 17.50 371.69 (4.35) (7.07) 2.72 6.06 6.17 (0.11)
Ohio Edison Co. 10/16/90 16.75 376.71 16.63 350.09 17.25 371.69 (0.75) (7.07) 6.32 3.76 6.17 (2.41)
First Mich Bank Corp. 10/11/90 13.63 376.88 11.75 346.86 14.00 359.72 (13.76) (7.97) (5.80) 19.15 3.71 15.44
Global Nat Res Inc. 10/5/90 7.38 382.65 6.50 367.02 6.75 364.85 (11.86) (4.08) (7.78) 3.85 (0.59) 4.44
International
Multifoods Corp. 10/4/90 28.88 379.48 31.50 368.42 32.38 359.80 9.09 (2.91) 12.01 2.78 (2.34) 5.12
Koger Pptys Inc. 9/30/90 19.00 382.03 11.13 360.47 7.13 358.50 (41.45) (5.64) (35.80)(35.96) (0.55) (35.41)
Property Cap Tr 9/28/90 7.63 382.03 7.63 360.47 7.38 358.50 0.00 (5.64) 5.64 (3.28) (0.55) (2.73)
La Qunita Mtr Inns 9/26/90 15.38 384.45 12.25 359.99 12.63 367.61 (20.33) (6.36) (13.96) 3.06 2.12 0.94
Med-Chem Prods Inc. 9/24/90 5.13 380.70 4.63 359.29 3.25 369.89 (9.76) (5.62) (4.13)(29.73) 2.95 (32.68)
Ogden Corp. 9/20/90 18.00 362.23 18.63 367.62 15.50 358.86 3.47 1.49 1.98 (16.78) (2.38) (14.40)
Regency Cruises Inc. 9/18/90 1.84 379.81 1.59 376.71 1.25 350.09 (13.56) (0.82) (12.74)(21.58) (7.07) (14.51)
Oryx Energy Co. 9/14/90 52.75 386.73 52.75 374.60 41.88 351.52 0.00 (3.14) 3.14 (20.62) (6.16) (14.45)
Santa Fe Energy
Res Inc. 9/13/90 21.00 392.42 21.38 376.88 19.63 346.86 1.79 (3.96) 5.75 (8.19) (7.97) (0.22)
Information Intl Inc. 9/11/90 11.75 400.84 10.50 380.23 9.25 358.67 (10.64) (5.14) (5.50)(11.90) (5.67) (6.23)
El Paso Elec Co. 9/5/90 6.38 398.96 5.88 384.35 5.63 367.37 (7.84) (3.66) (4.18) (4.19) (4.42) 0.23
Gamma Biologicals Inc. 9/5/90 3.00 395.82 2.88 382.65 2.75 367.02 (4.17) (3.33) (0.84) (4.35) (4.08) (0.26)
Enex Res Corp. Colo 9/4/90 3.50 395.10 4.00 382.85 40.63 371.05 14.29 (3.10) 17.39 915.75 (3.08) 918.83
Newmont Mng Corp. 8/30/90 51.63 415.29 44.50 377.69 41.50 355.10 (13.80) (9.05) (4.75) (6.74) (5.98) (0.76)
Northeast Bancorp Inc. 8/29/90 15.50 419.84 12.13 384.45 8.50 359.99 (21.77) (8.43) (13.34)(29.90) (6.36) (23.53)
FST City
Bancorp Tex Inc. 8/24/90 31.25 413.25 18.00 421.70 17.00 379.81 (42.40) 2.04 (44.44) (5.56) (9.93) 4.38
Guilford Mls Inc. 8/23/90 18.88 421.30 16.88 362.23 15.88 367.62 (10.60)(14.02) 3.42 (5.93) 1.49 (7.41)
Datron Sys Inc. CA 8/21/90 7.75 421.70 6.25 379.81 6.75 376.71 (19.35) (9.93) (9.42) 8.00 (0.82) 8.82
Regency Cruises Inc. 8/18/90 2.03 419.84 1.88 386.73 1.69 374.60 (7.68) (7.89) 0.21 (9.97) (3.14) (6.84)
Dresser Inds Inc. 8/16/90 26.25 433.20 25.56 392.42 25.50 376.88 (2.62) (9.41) 6.80 (0.25) (3.96) 3.71
Tektronix Inc. 8/16/90 16.13 433.20 12.88 392.42 14.38 376.88 (20.16) (9.41) (10.74) 11.65 (3.96) 15.61
Waste Mgmt Inc. 8/15/90 42.75 431.53 39.63 401.38 35.50 381.96 (7.31) (6.99) (0.32)(10.41) (4.84) (5.57)
ASK Computer Sys Inc. 8/14/90 9.38 435.58 9.25 400.84 8.00 380.23 (1.33) (7.98) 6.64 (13.51) (5.14) (8.37)
Boatmans Bancshares Inc. 8/14/90 32.00 435.58 28.25 400.84 27.50 380.23 (11.72) (7.98) (3.74) (2.65) (5.14) 2.49
On Line Software
Intl Inc. 8/13/90 7.88 428.69 6.63 400.06 5.88 380.57 (15.87) (6.68) (9.19)(11.32) (4.87) (6.45)
Genesco Inc. 8/8/90 5.38 427.54 4.63 398.96 3.75 384.35 (13.95) (6.68) (7.27)(18.92) (3.66) (15.26)
Storage Technology Corp. 8/8/90 32.63 427.54 21.50 398.96 19.88 384.35 (34.10) (6.68) (27.41) (7.56) (3.66) (3.90)
Liberty Corp. 8/7/90 47.25 420.97 47.00 395.10 48.38 382.85 (0.53) (6.15) 5.62 2.93 (3.10) 6.03
Harley Davidson Inc. 8/6/90 30.63 424.10 23.50 394.74 22.88 382.03 (23.27) (6.92) (16.34) (2.66) (3.22) 0.56
Hunt Mfg Co. 8/6/90 12.75 424.10 11.75 394.74 12.75 382.03 (7.84) (6.92) (0.92) 8.51 (3.22) 11.73
McDonnell Corp. 8/2/90 40.88 418.89 44.00 415.29 41.38 377.69 7.65 (0.86) 8.50 (5.97) (9.05) 3.09
N S Group Inc. 7/30/90 12.63 422.49 10.13 420.23 10.50 380.70 (19.80) (0.53) (19.27) 3.70 (9.41) 13.11
Bay View Cap Corp. 7/26/90 17.75 420.24 17.38 421.30 14.50 362.23 (2.11) 0.25 (2.36)(16.55)(14.02) (2.53)
Empire Dist Elec Co. 7/26/90 29.00 420.24 29.38 421.30 29.25 362.23 1.29 0.25 1.04 (0.43)(14.02) 13.60
Gerber Prods Co. 7/25/90 52.75 416.78 57.13 423.11 50.63 373.64 8.29 1.52 6.78 (11.38)(11.69) 0.31
Octel Communications
Corp. 7/25/90 24.13 416.78 19.63 423.11 17.63 373.64 (18.65) 1.52 (20.17)(10.19)(11.69) 1.50
United Banks Colo Inc. 7/25/90 18.63 416.78 19.75 423.11 19.50 373.64 6.04 1.52 4.52 (1.27)(11.69) 10.43
Woodhead Inds Inc. 7/25/90 15.63 416.78 15.75 423.11 14.38 373.64 0.80 1.52 (0.72) (8.73)(11.69) 2.96
Neutrogena Corp. 7/23/90 20.50 413.63 20.75 420.79 17.75 387.73 1.22 1.73 (0.51)(14.46) (7.86) (6.60)
Robert Half Intl Inc. 7/23/90 15.88 413.63 15.00 420.79 12.63 387.73 (5.51) 1.73 (7.24)(15.83) (7.86) (7.98)
Stone Container Corp. 7/23/90 17.38 413.63 15.38 420.79 13.63 387.73 (11.51) 1.73 (13.24)(11.38) (7.86) (3.53)
<PAGE>
Citizens Banking Corp. 7/20/90 22.50 417.10 21.25 428.69 21.75 386.73 (5.56) 2.78 (8.33) 2.35 (9.79) 12.14
Live Entertainment Inc. 7/19/90 23.88 421.12 22.50 431.53 17.50 392.42 (5.76) 2.47 (8.23)(22.22) (9.06) (13.16)
First American
Bank Corp. 7/18/90 24.88 421.12 23.75 431.53 21.31 401.38 (4.52) 2.47 (6.99)(10.26) (6.99) (3.27)
Kemper Corp. 7/18/90 41.75 421.12 42.13 431.53 36.63 401.38 0.90 2.47 (1.57)(13.06) (6.99) (6.07)
Triangle Corp. 7/15/90 5.00 424.91 4.88 435.38 4.13 395.82 (2.50) 2.46 (4.96)(15.38) (9.09) (6.30)
Adobe Res Corp. 7/11/90 12.25 426.16 11.38 427.54 12.88 398.96 (7.14) 0.32 (7.47) 13.19 (6.68) 19.87
Houston Inds Inc. 7/11/90 33.38 426.16 33.00 427.54 33.88 398.96 (1.12) 0.32 (1.45) 2.65 (6.68) 9.34
Health Care
Ppty Invs Inc. 7/5/90 30.63 422.73 31.50 418.89 32.25 415.29 2.86 (0.91) 3.77 2.38 (0.86) 3.24
Bank Boston Corp. 6/28/90 13.38 422.03 12.38 420.24 10.88 421.30 (7.48) (0.42) (7.05)(12.12) 0.25 (12.37)
Copley Pptys Inc. 6/28/90 12.00 422.03 12.00 420.24 12.75 421.30 0.00 (0.42) 0.42 6.25 0.25 6.00
IPALCO Enterprises Inc. 6/26/90 25.38 421.31 24.50 413.25 24.13 421.70 (3.45) (1.91) (1.54) (1.53) 2.04 (3.58)
Keystone Intl Inc. 6/20/90 27.13 419.32 26.63 421.12 28.50 431.53 (1.84) 0.43 (2.27) 7.04 2.47 4.57
Smith Intl Inc. 6/19/90 13.63 418.20 14.50 420.01 16.13 435.58 6.42 0.43 5.99 11.21 3.71 7.50
Carolco Pictures Inc. 6/18/90 12.75 412.75 12.50 424.91 12.00 420.91 (1.96) 2.95 (4.91) (4.00) (0.94) (3.06)
Reebok International Ltd 6/14/90 18.50 412.44 18.00 424.51 18.13 433.37 (2.70) 2.93 (5.63) 0.69 2.09 (1.39)
Triton Energy Corp. 6/14/90 11.25 412.44 11.75 424.51 12.38 433.37 4.44 2.93 1.52 5.32 2.09 3.23
Flow International Corp 6/7/90 4.25 400.21 4.13 422.73 4.13 418.89 (2.94) 5.63 (8.57) 0.00 (0.91) 0.91
Energynorth Inc. 6/6/90 17.96 398.88 17.48 424.61 17.00 423.71 (2.70) 6.45 (9.15) (2.72) (0.21) (2.51)
FHP International Corp. 6/6/90 14.14 409.45 16.36 417.43 17.05 422.32 15.74 1.95 13.80 4.16 1.17 2.99
Starrett L S Co. 6/6/90 21.63 398.88 25.25 424.61 24.38 423.71 16.76 6.45 10.31 (3.47) (0.21) (3.25)
Daniel Industries Inc 5/31/90 14.50 385.44 15.75 421.62 16.38 420.51 8.62 9.39 (0.77) 3.97 (0.26) 4.23
Summit Technology Inc. 5/29/90 6.31 382.02 8.25 396.81 9.66 386.51 30.68 3.87 26.81 17.04 (2.60) 19.64
Dennison
Manufacturing Co. 5/24/90 21.63 386.51 19.25 419.32 25.63 417.10 (10.98) 8.49 (19.47) 33.12 (0.53) 33.65
Gannett Inc 5/21/90 36.00 385.21 37.38 412.75 40.25 417.90 3.82 7.15 (3.33) 7.69 1.25 6.44
Horizon Industries Inc. 5/21/90 4.75 385.21 7.75 412.75 6.88 417.90 63.16 7.15 56.01 (11.29) 1.25 (12.54)
Digital Comm. Ass. Inc. 5/18/90 19.75 395.81 23.13 412.44 24.13 424.51 17.09 4.20 12.89 4.32 2.93 1.40
Kent Electronics Corp. 5/11/90 8.38 400.42 8.75 400.21 11.50 421.22 4.48 (0.05) 4.53 31.43 5.25 26.18
FAB Industries Inc. 5/10/90 33.94 399.85 34.50 400.21 35.00 422.73 1.66 0.09 1.57 1.45 5.63 (4.18)
Detrex Corp. 5/4/90 19.50 396.95 19.50 391.12 21.50 422.03 0.00 (1.47) 1.47 10.26 7.90 2.35
Unitrode Corp. 5/2/90 4.50 392.84 3.88 387.08 5.00 422.03 (13.89)(1.47) (12.42) 29.03 9.03 20.00
Genus Inc. 4/27/90 6.13 394.18 4.50 387.89 4.63 413.63 (26.53)(1.60) (24.93) 2.78 6.64 (3.86)
American
Travellers Corp. 4/25/90 9.50 396.48 12.13 384.45 17.25 418.20 27.63 (3.03) 30.67 42.27 8.78 33.49
Progress
Financial Corp. 4/25/90 8.88 391.94 7.25 384.45 14.00 418.45 (18.31)(1.91) (16.40) 93.10 8.84 84.26
Republic Capital
Group Inc. 4/25/90 16.13 391.94 15.44 384.45 15.00 418.45 (4.26)(1.91) (2.35) (2.84) 8.84 (11.68)
Tony Lama Co. Inc. 4/23/90 8.13 398.94 6.75 389.90 6.00 419.32 (16.92)(2.27) (14.66)(11.11) 7.55 (18.66)
American Rlty Tr. 4/11/90 5.25 388.20 4.25 397.16 3.88 398.02 (19.05) 2.31 (21.36) (8.82) 0.22 (9.04)
American Health
Pptys Inc. 4/10/90 20.88 391.25 20.25 397.13 21.75 396.54 (2.99) 1.50 (4.50) 7.41 (0.15) 7.56
Logicon Inc. 4/6/90 18.38 389.54 17.88 396.95 16.25 391.12 (2.72) 1.90 (4.62) (9.09) (1.47) (7.62)
First Un Real
Estate Equity 3/30/90 15.75 382.02 17.38 396.81 15.25 385.44 10.32 3.87 6.45 (12.23) (2.87) (9.36)
Trustcompany
Bacorporation 3/29/90 18.00 382.02 18.50 396.81 17.50 387.89 2.78 3.87 (1.09) (5.41) (2.25) (3.16)
Teradyne Inc. 3/14/90 9.13 383.13 9.38 388.20 9.38 399.85 2.74 1.32 1.42 0.00 3.00 (3.00)
Wallace Computer
Svcs Inc. 3/14/90 27.00 383.13 25.50 388.20 25.50 399.85 (5.56) 1.32 (6.88) 0.00 3.00 (3.00)
Graco Inc. 3/9/90 17.75 385.67 21.50 393.02 20.63 395.65 21.13 1.91 19.22 (4.07) 0.67 (4.74)
Synoptics
Communications Inc. 3/5/90 14.38 380.09 15.75 386.25 17.81 392.84 9.57 1.62 7.94 13.10 1.71 11.39
Western Co.
North American 3/5/90 15.00 381.14 17.63 386.25 16.75 392.84 17.50 1.34 16.16 (4.96) 1.71 (6.67)
Arix Corp 2/27/90 2.13 374.31 2.13 378.51 2.00 391.34 0.00 1.12 (1.12) (5.88) 3.39 (9.27)
NIPSCO Industries Inc. 2/27/90 17.38 374.31 17.63 378.51 17.88 391.94 1.44 1.12 0.32 1.42 3.55 (2.13)
CCB Financial Corp. 2/26/90 39.50 374.58 36.75 381.26 36.50 391.34 (6.96) 1.78 (8.75) (0.68) 2.64 (3.32)
CFW Communications Co. 2/26/90 19.00 374.31 19.00 373.15 19.00 391.34 0.00 (0.31) 0.31 0.00 4.87 (4.87)
Graham Corp 2/23/90 21.50 379.92 27.25 375.35 23.63 389.56 26.74 (1.20) 27.95 (13.30) 3.79 (17.09)
Midlantic Corp 2/23/90 24.00 379.68 21.25 375.35 18.63 389.56 (11.46)(1.14) (10.32)(12.35) 3.79 (16.14)
Eastern Enterprises 2/22/90 30.38 379.92 30.38 378.13 30.63 394.23 0.00 (0.47) 0.47 0.82 4.26 (3.43)
Tultex Corp. 2/22/90 7.50 373.15 8.63 394.23 8.00 389.90 15.00 5.65 9.35 (7.25) (1.10) (6.15)
Barnett Banks Inc. 2/21/90 31.75 381.26 32.75 378.66 29.38 396.45 3.15 (0.68) 3.83 (10.31) 4.70 (15.00)
Huntington
Bancshares Inc. 2/21/90 17.05 379.68 16.82 378.66 16.71 396.45 (1.33)(0.27) (1.06) (0.67) 4.70 (5.37)
Chemdesign Corp. 2/20/90 14.00 381.26 14.25 383.81 12.25 398.80 1.79 0.67 1.12 (14.04) 3.91 (17.94)
Washington Wtr Pwr Co. 2/16/90 30.63 391.83 29.75 386.51 28.75 388.20 (2.86)(1.36) (1.50) (3.36) 0.44 (3.80)
VMX Inc. 2/15/90 2.38 379.68 1.94 383.13 2.38 391.33 (18.40) 0.91 (19.31) 22.55 2.14 20.41
Intl. Flavors
& Fragrances 2/13/90 64.13 390.72 58.00 381.28 59.25 391.25 (9.55)(2.42) (7.14) 2.16 2.61 (0.46)
General Employment
Enterpris. 2/12/90 2.50 390.72 3.00 380.09 3.00 389.02 20.00 (2.72) 22.72 0.00 2.35 (2.35)
MDT Corp. 2/10/90 7.13 390.72 6.50 385.67 5.88 393.02 (8.77)(1.29) (7.48) (9.62) 1.91 (11.52)
Advanced Micro
Devices Inc. 2/7/90 7.75 401.54 7.00 380.09 9.00 389.02 (9.68)(5.34) (4.34) 28.57 2.35 26.22
Giddings & Lewis Inc. 2/7/90 17.15 399.15 16.38 380.09 18.00 389.02 (4.52)(4.78) 0.26 9.92 2.35 7.57
Quaker Chemical Corp. 2/7/90 14.00 406.09 13.67 380.09 13.83 389.54 (2.38)(6.40) 4.02 1.21 2.49 (1.27)
Anacomp Inc 2/4/90 4.38 404.05 3.88 381.16 3.50 386.25 (11.43)(5.67) (5.76) (9.68) 1.34 (11.01)
United Coin Mines Ltd. 2/2/90 2.09 411.20 2.59 378.36 2.50 383.02 23.88 (7.99) 31.86 (3.62) 1.23 (4.86)
J.C. Penney 1/31/90 74.88 410.40 66.88 371.92 65.88 382.02 (10.68)(9.38) (1.31) (1.50) 2.72 (4.21)
Keystone Financial 1/30/90 24.75 411.20 22.25 374.31 22.50 380.38 (10.10)(8.97) (1.13) 1.12 1.62 (0.50)
Monsanto 1/26/90 115.38 403.49 106.00 374.86 108.75 373.15 (8.13)(7.10) (1.03) 2.59 (0.46) 3.05
Wolohan Lumber 1/26/90 16.50 403.49 16.25 374.86 15.00 373.15 (1.52)(7.10) 5.58 (7.69)(0.46) (7.24)
Telecom USA 1/25/90 22.75 400.50 20.38 379.92 16.50 375.35 (10.44)(5.14) (5.30) (19.02)(1.20) (17.82)
Hooper Holmes Inc. 1/23/90 9.00 395.65 8.75 379.68 8.75 373.15 (2.78)(4.04) 1.26 0.00 (1.72) 1.72
Coachmen
Industires Inc. 1/19/90 6.63 403.39 6.75 389.97 6.75 383.81 1.89 (3.33) 5.21 0.00 (1.58) 1.58
Lewis Galoob Toys 1/19/90 11.88 396.35 11.88 388.82 9.63 383.81 0.00 (1.90) 1.90 (18.95)(1.29) (17.66)
Regional Bancorp 1/18/90 14.25 393.81 15.00 387.99 13.25 386.51 5.26 (1.48) 6.74 (11.67)(0.38) (11.29)
Summit Bancorporation 1/16/90 16.25 393.60 16.88 388.82 17.25 386.51 3.85 (1.21) 5.06 2.22 (0.59) 2.82
West Co. 1/16/90 17.63 392.46 18.50 387.45 18.00 382.31 4.96 (1.28) 6.24 (2.70) (1.33) (1.38)
Westbank 1/12/90 5.94 399.91 5.45 400.57 5.50 385.67 (8.33) 0.17 (8.50) 0.99 (3.72) 4.71
Idaho Power 1/11/90 29.75 400.56 28.00 399.15 27.63 384.99 (5.88)(0.35) (5.53) (1.34) (3.55) 2.21
Par Pharmaceutical 1/8/90 7.00 398.91 6.25 404.20 7.00 382.29 (10.71) 1.33 (12.04) 12.00 (5.42) 17.42
National Savings
Bank Albany 1/2/90 25.00 399.71 28.00 403.49 28.50 371.92 12.00 0.95 11.05 1.79 (7.82) 9.61
Mission Resource
Partners LP 12/31/89 15.38 395.51 12.75 403.49 12.38 374.31 (17.07) 2.02 (19.09) (2.94) (7.23) 4.29
Davis Water & Waste 12/21/89 14.75 390.58 12.63 391.86 13.00 388.82 (14.41) 0.33 (14.73) 2.97 (0.78) 3.75
Kinark Corp 12/21/89 4.75 390.58 4.75 391.86 4.88 388.82 0.00 0.33 (0.33) 2.63 (0.78) 3.41
PACCAR Inc. 12/21/89 42.50 390.58 42.00 391.86 41.25 388.82 (1.18) 0.33 (1.50) (1.79) (0.78) (1.01)
Boston Five Bancorp 12/20/89 6.25 390.58 4.88 392.46 6.38 387.99 (22.00) 0.48 (22.48) 30.77 (1.14) 31.91
Briggs & Stratton 12/20/89 26.25 390.58 24.63 392.46 28.88 387.99 (6.19) 0.48 (6.67) 17.26 (1.14) 18.40
CUCOS Inc. 12/20/89 1.88 387.27 1.88 392.46 1.88 389.97 0.00 1.34 (1.34) 0.00 (0.63) 0.63
MCN Corp 12/20/89 21.75 390.58 23.38 392.46 22.75 387.99 7.47 0.48 6.99 (2.67) (1.14) (1.53)
Bank of
Chester County 12/19/89 11.50 387.65 9.13 393.60 9.63 391.83 (20.65) 1.53 (22.19) 5.48 (0.45) 5.93
Lincoln Financial
Corp. 12/19/89 26.25 387.27 24.50 393.60 24.00 388.82 (6.67) 1.63 (8.30) (2.04) (1.21) (0.83)
TCI International 12/18/89 7.88 387.27 6.50 399.91 6.88 387.45 (17.46) 3.26 (20.72) 5.77 (3.12) 8.88
Capital Cities/ABC 12/15/89 544.00 389.92 547.00 400.56 536.00 390.72 0.55 2.73 (2.18) (2.01) (2.46) 0.45
Ohio Casualty 12/15/89 50.75 389.92 49.75 400.56 47.13 390.72 (1.97) 2.73 (4.70) (5.28) (2.46) (2.82)
Alcan Aluminium 12/14/89 21.38 388.05 22.75 403.07 23.50 400.57 6.43 3.87 2.56 3.30 (0.62) 3.92
Biomet 12/14/89 27.00 388.05 27.00 403.07 28.00 400.57 0.00 3.87 (3.87) 3.70 (0.62) 4.32
Foremost Corp 12/14/89 35.25 388.05 33.75 403.07 34.75 400.57 (4.26) 3.87 (8.13) 2.96 (0.62) 3.58
International
Technology 12/14/89 4.88 388.05 6.75 403.07 6.75 400.57 38.46 3.87 34.59 0.00 (0.62) 0.62
Vitalink
Communications 12/14/89 18.63 388.05 15.50 403.07 15.75 400.57 (16.78) 3.87 (20.65) 1.61 (0.62) 2.23
Heekin Can 12/13/89 39.25 388.16 39.75 402.71 38.50 399.15 1.27 3.75 (2.47) (3.14) (0.88) (2.26)
Oneida 12/13/89 15.13 388.16 14.63 402.71 14.50 399.15 (3.31) 3.75 (7.05) (0.85) (0.88) 0.03
CareerCom Corp 12/12/89 5.88 385.09 5.25 398.91 4.75 401.54 (10.64) 3.59 (14.23) (9.52) 0.66 (10.18)
Berry Petroleum 12/11/89 13.50 387.03 13.69 399.22 14.25 406.09 1.39 3.15 (1.76) 4.11 1.72 2.38
Digital Equipment 12/11/89 83.63 387.03 85.00 399.22 87.75 406.09 1.64 3.15 (1.51) 3.24 1.72 1.51
GTE Corp 12/7/89 65.38 383.22 68.50 398.71 69.25 407.59 4.78 4.04 0.74 1.09 2.23 (1.13)
Murphy Oil 12/7/89 38.50 383.22 40.88 398.71 41.25 407.59 6.17 4.04 2.13 0.92 2.23 (1.31)
Bradley Real
Estate Trust 12/6/89 10.88 385.14 10.50 399.71 9.75 410.40 (3.45) 3.78 (7.23) (7.14) 2.67 (9.82)
St. Paul Companies 12/4/89 60.50 378.85 63.00 400.67 60.00 411.20 4.13 5.76 (1.63) (4.76) 2.63 (7.39)
North-West
Telecommunications 12/1/89 43.25 384.77 40.88 395.51 42.00 403.49 (5.49) 2.79 (8.28) 2.75 2.02 0.73
Western Digital 12/1/89 6.88 384.77 8.25 395.51 8.38 403.49 20.00 2.79 17.21 1.52 2.02 (0.50)
Maxxam Inc. 11/30/89 44.38 385.96 45.50 392.67 46.50 400.50 2.54 1.74 0.80 2.20 1.99 0.20
Commercial Intertech 11/29/89 20.25 389.42 21.75 395.27 22.25 398.07 7.41 1.50 5.91 2.30 0.71 1.59
Bell South Corp. 11/28/89 52.50 388.54 52.75 394.88 56.75 395.65 0.48 1.63 (1.16) 7.58 0.19 7.39
Security Bancorp 11/28/89 21.50 388.54 21.25 394.88 20.38 395.65 (1.16) 1.63 (2.79) (4.12) 0.19 (4.31)
Dofasco Inc. 11/27/89 25.38 382.10 25.00 392.98 24.38 395.65 (1.48) 2.85 (4.33) (2.50) 0.68 (3.18)
Sherritt-Gordon 11/27/89 NA 382.10 NA 392.98 NA 395.65 NA 2.85 NA NA 0.68 N/A
Hershey Oil 11/24/89 6.00 382.16 6.00 390.58 6.88 396.35 0.00 2.20 (2.20) 14.58 1.48 13.11
Norwich
Financial Corp. 11/21/89 9.13 392.83 9.00 387.27 8.13 392.46 (1.37) (1.42) 0.05 (9.72) 1.34 (11.06)
Charter One Financial 11/20/89 21.00 393.58 18.75 389.92 15.50 393.60 (10.71) (0.93) (9.78) (17.33) 0.94 (18.28)
Apple Bancorp 11/17/89 36.25 396.30 36.38 388.05 33.00 399.91 0.34 (2.08) 2.43 (9.28) 3.06 (12.33)
NBB Bancorp 11/14/89 15.13 389.34 15.75 387.03 15.13 402.71 4.13 (0.59) 4.73 (3.97) 4.05 (8.02)
Broadway
Financial Corp. 11/13/89 13.50 391.33 13.13 386.45 12.00 398.91 (2.78) (1.25) (1.53) (8.57) 3.22 (11.80)
Gleason Corp. 11/13/89 15.38 391.33 16.13 386.45 15.88 398.91 4.88 (1.25) 6.13 (1.55) 3.22 (4.77)
USBancorp 11/10/89 15.25 379.68 14.88 383.22 14.50 399.22 (2.46) 0.93 (3.39) (2.52) 4.18 (6.70)
CCNB Corp. 11/9/89 22.38 405.40 21.75 385.14 21.50 397.89 (2.79) (5.00) 2.20 (1.15) 3.31 (4.46)
Diversified Energies 11/8/89 32.50 407.40 33.38 381.39 36.38 398.71 2.69 (6.38) 9.08 8.99 4.54 4.45
Wetterau Inc. 11/8/89 30.13 407.40 29.38 381.39 29.38 398.71 (2.49) (6.38) 3.89 0.00 4.54 (4.54)
Syncor International 11/7/89 7.00 409.73 7.00 378.85 7.38 399.71 0.00 (7.54) 7.54 5.36 5.51 (0.15)
Goody Products 11/1/89 15.75 407.40 13.00 388.54 10.75 392.67 (17.46) (4.63) (12.83) (17.31) 1.06 (18.37)
Volunteer Bancshares 10/31/89 13.75 404.44 13.75 382.10 13.00 395.27 0.00 (5.52) 5.52 (5.45) 3.45 (8.90)
Aetna Life
& Causualty Co. 10/27/89 56.88 397.81 60.50 385.19 61.00 392.98 6.37 (3.17) 9.55 0.83 2.02 (1.20)
Tellabs Inc. 10/27/89 11.00 397.95 9.25 385.19 9.50 392.98 (15.91) (3.21) (12.70) 2.70 2.02 0.68
American Business
Products 10/26/89 24.63 397.81 21.00 390.92 20.00 392.98 (14.72) (1.73) (12.99) (4.76) 0.53 (5.29)
Flagship
Financial Corp. 10/26/89 17.63 397.81 15.88 390.92 14.75 392.98 (9.93) (1.73) (8.20) (7.09) 0.53 (7.61)
Philip Morris Co.'s 10/26/89 41.25 397.81 43.50 390.92 41.50 392.98 5.45 (1.73) 7.19 (4.60) 0.53 (5.12)
First New
York Business Bank 10/25/89 12.00 393.88 11.25 392.83 9.00 390.58 (6.25) (0.27) (5.98) (20.00) (0.57) (19.43)
Bankeast Corp. 10/24/89 3.13 393.01 3.00 393.58 2.38 387.65 (4.00) 0.15 (4.15) (20.83) (1.51) (19.33)
Tambrands Inc. 10/24/89 71.00 393.01 65.75 393.58 63.50 387.65 (7.39) 0.15 (7.54) (3.42) (1.51) (1.92)
Amoskeag Bank Shares 10/23/89 7.25 392.89 5.25 396.30 4.63 385.95 (27.59) 0.87 (28.45) (11.90) (2.61) (9.29)
McGill Manufacturing
Co. 10/23/89 56.50 392.89 73.13 396.30 83.50 387.27 29.42 0.87 28.56 14.19 (2.28) 16.47
Southeast Banking 10/20/89 26.13 395.84 26.13 396.57 24.88 389.92 0.00 0.18 (0.18) (4.78) (1.68) (3.11)
NYNEX Corp. 10/19/89 80.75 394.64 79.50 390.22 80.25 388.05 (1.55) (1.12) (0.43) 0.94 (0.56) 1.50
West One Bancorp 10/19/89 26.50 394.64 26.17 390.22 24.83 388.05 (1.26) (1.12) (0.14) (5.10) (0.56) (4.54)
Community Bankshares 10/18/89 9.13 395.60 8.50 389.34 5.75 388.16 (6.85) (1.58) (5.27) (32.35) (0.30) (32.05)
Northern Trust Corp. 10/17/89 64.50 395.98 64.75 391.33 63.75 385.09 0.39 (1.17) 1.56 (1.54) (1.59) 0.05
CFS Financial Corp. 10/16/89 18.75 396.18 17.25 379.68 14.00 387.03 (8.00) (4.16) (3.84) (18.84) 1.94 (20.78)
Quest Medical 10/13/89 2.50 394.35 2.38 405.40 2.06 386.45 (5.00) 2.80 (7.80) (13.14) (4.67) (8.46)
First Essex Bancorp 10/12/89 7.25 392.64 7.88 407.40 7.63 383.22 8.62 3.76 4.86 (3.17) (5.94) 2.76
Heritage Bancorp 10/12/89 8.45 392.64 7.88 407.40 7.13 383.22 (6.83) 3.76 (10.59) (9.52) (5.94) (3.59)
Star Banc Corp. 10/10/89 26.00 399.24 25.50 410.49 22.00 381.39 (1.92) 2.82 (4.74) (13.73) (7.09) (6.64)
USX Corp. 10/10/89 34.50 399.24 38.63 410.49 34.13 381.39 11.96 2.82 9.14 (11.65) (7.09) (4.56)
Eastchester Financial 10/4/89 14.50 400.16 14.13 404.44 13.13 389.42 (2.59) 1.07 (3.66) (7.08) (3.71) (3.37)
Security
Investments Group 10/3/89 6.13 404.10 6.25 400.02 5.25 388.54 2.04 (1.01) 3.05 (16.00) (2.87) (13.13)
AVX Corp. 9/28/89 19.63 401.92 21.63 397.81 28.88 392.84 10.19 (1.02) 11.21 33.53 (1.25) 34.78
"ConAgra, Inc." 9/28/89 37.50 401.92 37.63 397.81 38.38 392.84 0.33 (1.02) 1.36 1.99 (1.25) 3.24
Wyle Labs 9/28/89 8.63 401.92 8.50 397.81 9.25 392.84 (1.45) (1.02) (0.43) 8.82 (1.25) 10.07
"MAPCO, Inc." 9/27/89 37.38 401.06 37.25 393.88 34.88 390.92 (0.33) (1.79) 1.46 (6.38) (0.75) (5.62)
ONBANcorp. 9/25/89 13.00 403.53 12.38 395.84 13.25 393.58 (4.81) (1.91) (2.90) 7.07 (0.57) 7.64
"InterTAN, Inc." 9/22/89 49.13 402.71 47.38 395.84 61.00 396.57 (3.56) (1.71) (1.86) 28.76 0.18 28.58
Pacific Telesis Group 9/22/89 44.75 402.71 45.63 395.84 45.50 396.57 1.96 (1.71) 3.66 (0.27) 0.18 (0.46)
Standard Federal Bank 9/22/89 12.50 402.71 12.00 395.84 12.00 396.57 (4.00) (1.71) (2.29) 0.00 0.18 (0.18)
"Gamma Biologicals,
Inc." 9/21/89 2.75 394.64 2.75 394.64 3.13 390.22 0.00 0.00 0.00 13.64 (1.12) 14.76
"DFSoutheastern,
Inc." 9/19/89 20.25 390.50 19.13 395.98 17.38 391.33 (5.56) 1.40 (6.96) (9.15) (1.17) (7.98)
Nelson Holdings Ltd. 9/19/89 0.88 390.50 0.94 395.98 1.06 391.33 7.20 1.40 5.80 13.33 (1.17) 14.50
"Sovereign Bancorp,
Inc." 9/19/89 19.50 390.50 18.75 395.98 18.25 391.33 (3.85) 1.40 (5.25) (2.67) (1.17) (1.49)
Sovran Financial Corp.9/19/89 37.75 367.37 40.13 384.22 42.50 395.73 6.29 4.59 1.70 5.92 3.00 2.92
"Imperial
Holly, Corp." 9/14/89 25.50 394.27 26.25 391.64 28.25 407.40 2.94 (0.67) 3.61 7.62 4.02 3.59
Marietta Corporation 9/12/89 23.50 392.77 22.00 397.99 22.00 410.49 (6.38) 1.33 (7.71) 0.00 3.14 (3.14)
Velobind Inc. 9/8/89 6.625 396.86 5.75 399.21 5.63 407.04 (13.21) 0.59 (13.80) (2.17) 1.96 (4.14)
Great Lakes
Chemical Corp. 9/7/89 20.25 398.56 23.38 399.21 23.13 407.04 15.43 0.16 15.27 (1.07) 1.96 (3.03)
Multimedia Inc. 9/6/89 105.25 396.86 105.00 400.16 100.00 404.44 (0.24) 0.83 (1.07) (4.76) 1.07 (5.83)
"The Genlyte Group,
Inc." 8/29/89 12.50 395.68 12.75 401.06 12.25 392.89 2.00 1.36 0.64 (3.92) (2.04) (1.88)
"WICOR, Inc." 8/29/89 23.50 395.68 23.38 401.06 24.13 392.89 (0.53) 1.36 (1.89) 3.21 (2.04) 5.25
Society Corp. 8/25/89 36.00 391.87 37.75 401.79 36.88 394.64 4.86 2.53 2.33 (2.32) (1.78) (0.54)
HomeFed Corp. 8/24/89 35.88 387.31 41.88 402.71 44.63 395.60 16.72 3.98 12.75 6.57 (1.77) 8.33
National Penn
Bancshares Inc. 8/23/89 43.33 382.20 42.88 390.50 44.50 395.98 (1.06) 2.17 (3.23) 3.79 1.40 2.39
"Fleming
Companies, Inc." 8/22/89 36.50 382.38 34.75 390.50 34.50 396.18 (4.79) 2.12 (6.92) (0.72) 1.45 (2.17)
Anchor Glass Corp. 8/21/89 10.88 385.31 20.00 389.55 19.25 394.35 83.91 1.10 82.81 (3.75) 1.23 (4.98)
"QED Exploration,
Inc." 8/21/89 1.69 385.31 2.16 389.55 2.00 394.35 27.73 1.10 26.62 (7.24) 1.23 (8.47)
"Sage Software, Inc." 8/18/89 8.38 381.96 7.25 395.84 7.88 392.64 (13.43) 3.63 (17.07) 8.62 (0.81) 9.43
First Fidelity
Bancorp 8/17/89 32.88 384.22 33.50 394.27 31.25 395.38 1.90 2.62 (0.71) (6.72) 0.28 (7.00)
UJB Financial Corp. 8/17/89 23.00 384.22 26.25 394.27 25.75 395.38 14.13 2.62 11.51 (1.90) 0.28 (2.19)
New Hampshire
Savings Bank 8/16/89 5.00 378.73 5.75 395.73 6.50 399.24 15.00 4.49 10.51 13.04 0.89 12.16
Mellon Bank Corp. 8/15/89 37.13 379.67 35.75 394.71 34.75 397.99 (3.70) 3.96 (7.67) (2.80) 0.83 (3.63)
"BRE Properties, Inc."8/14/89 30.00 378.70 31.38 392.77 30.00 399.47 4.58 3.72 0.87 (4.38) 1.71 (6.09)
AMR Corp. 8/11/89 61.88 376.50 77.50 394.38 81.00 399.21 25.25 4.75 20.50 4.52 1.22 3.29
"Anthony
Industries, Inc." 8/10/89 15.88 376.24 17.13 398.56 17.00 400.16 7.87 5.93 1.94 (0.73) 0.40 (1.13)
Storage
Technology Corp. 8/8/89 13.75 373.12 12.38 399.67 10.25 405.27 (10.00) 7.12 (17.12) (17.17) 1.40 (18.57)
"Bemis Company, Inc." 8/3/89 29.50 366.17 33.88 393.62 33.88 401.92 14.83 7.50 7.33 0.00 2.11 (2.11)
"Juno Lighting, Inc." 8/2/89 17.75 364.82 17.75 393.02 17.75 401.06 0.00 7.73 (7.73) 0.00 2.05 (2.05)
"Marsh
Supermarkets, Inc." 8/1/89 19.25 364.82 19.13 392.20 18.50 403.53 (0.65) 7.51 (8.15) (3.27) 2.89 (6.16)
Georgia Pacific Corp. 7/31/89 43.88 363.48 54.88 395.68 59.13 403.53 25.07 8.86 16.21 7.74 1.98 5.76
IOMEGA Corp. 7/28/89 2.63 365.70 2.75 391.31 2.75 401.79 4.76 7.00 (2.24) 0.00 2.68 (2.68)
Numac Oil
and Gas Ltd. 7/28/89 8.25 365.70 8.50 391.31 8.50 401.79 3.03 7.00 (3.97) 0.00 2.68 (2.68)
"Ryder System, Inc. " 7/28/89 26.00 365.70 28.88 391.31 28.38 401.79 11.06 7.00 4.05 (1.73) 2.68 (4.41)
American
General Corporation 7/27/89 36.75 372.92 37.63 391.87 38.00 402.71 2.38 5.08 (2.70) 1.00 2.77 (1.77)
California Microwave 7/27/89 8.00 372.92 9.13 391.87 9.13 402.71 14.06 5.08 8.98 0.00 2.77 (2.77)
Cobe Labs Inc. 7/27/89 19.50 372.92 21.00 391.87 22.00 402.71 7.69 5.08 2.61 4.76 2.77 2.00
Pneumatic Scale Corp. 7/27/89 20.25 372.92 30.25 391.87 22.63 402.71 49.38 5.08 44.30 (25.21) 2.77 (27.97)
Adaptec Inc. 7/26/89 5.63 336.92 7.38 353.98 10.00 366.05 31.08 5.06 26.02 35.50 3.41 32.09
Ametek Inc. 7/26/89 15.75 375.71 13.88 387.31 14.38 394.64 (11.90) 3.09 (14.99) 3.60 1.89 1.71
Asarco Incorporated 7/26/89 28.63 375.71 29.63 387.31 34.75 394.64 3.49 3.09 0.41 17.30 1.89 15.41
MTEL 7/26/89 8.00 375.71 11.00 387.31 10.63 394.64 37.50 3.09 34.41 (3.41) 1.89 (5.30)
Union Carbide Corp. 7/26/89 27.13 375.71 27.50 387.31 28.50 394.64 1.38 3.09 (1.70) 3.64 1.89 1.74
Concurrent Computer 7/25/89 4.63 373.30 4.63 382.20 4.88 390.50 0.00 2.38 (2.38) 5.41 2.17 3.23
"Cullen/Frost
Bankers, Inc." 7/25/89 15.88 373.30 16.75 382.20 17.75 390.50 5.51 2.38 3.13 5.97 2.17 3.80
Meridian Bancorp 7/25/89 23.63 373.30 23.88 382.20 25.50 390.50 1.06 2.38 (1.33) 6.81 2.17 4.63
St. Jude Medical 7/24/89 36.50 373.30 37.50 385.31 40.00 389.55 2.74 3.22 (0.48) 6.67 1.10 5.57
Burr Brown Corp 7/21/89 11.00 373.30 9.75 381.96 9.50 389.55 (11.36) 2.32 (13.68) (2.56) 1.99 (4.55)
Global Natural
Res. Inc. 7/20/89 5.25 366.56 5.75 381.96 5.63 394.27 9.52 4.20 5.32 (2.17) 3.22 (5.40)
ICM Property
Invs. Inc. 7/18/89 10.00 368.12 9.00 378.73 8.00 394.71 (10.00) 2.88 (12.88) (11.11) 4.22 (15.33)
Interpublic Group 7/18/89 31.75 368.12 31.88 378.73 35.00 394.71 0.39 2.88 (2.49) 9.80 4.22 5.58
Kerr-McGee Corp. 7/11/89 46.25 373.21 46.63 374.77 48.75 399.67 0.81 0.42 0.39 4.56 6.64 (2.09)
Phillips Petroleum Co.7/10/89 22.88 373.53 23.13 373.12 22.75 399.26 1.09 (0.11) 1.20 (1.62) 7.01 (8.63)
Georgia Gulf Corp. 7/7/89 36.63 373.52 39.38 370.87 44.00 393.14 7.51 (0.71) 8.22 11.75 6.00 5.74
Computer Horizons Corp.7/6/89 7.63 371.10 8.00 367.19 7.25 393.62 4.92 (1.05) 5.97 (9.38) 7.20 (16.57)
United Water
Resources Inc. 7/6/89 16.88 371.10 16.63 367.19 16.63 393.62 (1.48) (1.05) (0.43) 0.00 7.20 (7.20)
Flow General Inc. 6/30/89 5.63 372.99 5.88 363.48 6.13 395.68 4.44 (2.55) 6.99 4.26 8.86 (4.60)
United Savers Bancorp 6/29/89 14.50 369.46 12.00 365.70 9.38 391.31 (17.24) (1.02) (16.22) (21.88) 7.00
(28.88)
"US Air Group, Inc. " 6/29/89 45.75 369.46 45.38 365.70 50.00 391.31 (0.82) (1.02) 0.20 10.19 7.00 3.19
Dionex Corp. 6/27/89 20.00 366.30 18.75 373.30 19.25 382.20 (6.25) 1.91 (8.16) 2.67 2.38 0.28
Crestar Financial
Corp. 6/23/89 27.75 366.50 29.50 375.06 29.38 382.38 6.31 2.34 3.97 (0.42) 1.95 (2.38)
Baltimore Bancorp 6/21/89 14.00 364.72 14.13 366.56 15.00 381.96 0.89 0.50 0.39 6.19 4.20 1.99
Echlin Inc. 6/21/89 17.75 364.72 16.88 366.56 16.88 381.96 (4.93) 0.50 (5.43) 0.00 4.20 (4.20)
"IMC Fertilizer
Group, Inc." 6/21/89 40.13 364.72 36.25 366.56 34.63 381.96 (9.66) 0.50 (10.16) (4.48) 4.20 (8.68)
"Maxwell
Laboratories, Inc." 6/21/89 14.00 369.09 17.00 367.37 14.50 384.22 21.43 (0.47) 21.89 (14.71) 4.59 (19.29)
MGI Properties 6/21/89 14.50 364.72 15.00 366.56 16.00 381.96 3.45 0.50 2.94 6.67 4.20 2.47
The Walt
Disney Company 6/21/89 94.13 364.72 93.00 366.56 101.25 381.96 (1.20) 0.50 (1.70) 8.87 4.20 4.67
Valley National 6/21/89 27.75 364.72 25.88 366.56 26.25 381.96 (6.76) 0.50 (7.26) 1.45 4.20 (2.75)
Tolland Bank 6/20/89 10.75 369.09 10.38 367.37 10.25 384.22 (3.49) (0.47) (3.02) (1.20) 4.59 (5.79)
Analysts
International Corp. 6/16/89 14.60 365.47 15.60 367.74 15.60 379.67 6.85 0.62 6.23 0.00 3.24 (3.24)
"P&F Industries, Inc."6/16/89 3.13 365.47 3.19 367.74 3.25 379.67 2.02 0.62 1.39 1.94 3.24 (1.30)
AmSouth Bancorporation6/15/89 26.63 365.47 28.75 367.74 28.75 379.67 7.98 0.62 7.36 0.00 3.24 (3.24)
Hathaway Corp. 6/15/89 3.88 365.47 4.38 367.74 4.38 379.67 12.90 0.62 12.28 0.00 3.24 (3.24)
Santa Anita Realty 6/15/89 29.75 365.47 29.88 367.74 30.75 379.67 0.42 0.62 (0.20) 2.93 3.24 (0.32)
"Applied Materials,
Inc." 6/14/89 31.00 362.52 28.50 370.40 27.75 376.50 (8.06) 2.17 (10.24) (2.63) 1.65 (4.28)
"Casey's
General Stores, Inc."6/14/89 12.00 362.52 10.75 370.40 8.00 376.50 (10.42) 2.17 (12.59) (25.58) 1.65 (27.23)
"Matlack
Systems, Inc." 6/14/89 8.38 362.52 8.50 370.40 8.38 376.50 1.49 2.17 (0.68) (1.47) 1.65 (3.12)
RLC Corp. 6/14/89 8.63 362.52 8.88 370.40 8.50 376.50 2.90 2.17 0.72 (4.23) 1.65 (5.87)
"Rollins Envir.
Services, Inc." 6/14/89 10.75 362.52 11.63 370.40 9.88 376.50 8.14 2.17 5.97 (15.05) 1.65 (16.70)
John H. Harland Co. 6/9/89 21.50 353.48 23.00 373.53 23.50 373.12 6.98 5.67 1.30 2.17 (0.11) 2.28
Duplex Products Inc. 6/8/89 19.88 352.15 20.50 373.52 20.25 370.87 3.14 6.07 (2.92) (1.22) (0.71) (0.51)
Gleason Corp. 6/6/89 14.63 351.35 14.63 368.52 18.13 366.17 0.00 4.89 (4.89) 23.93 (0.64) 24.57
Hasbro Inc. 6/5/89 17.63 354.16 21.25 368.52 21.00 364.82 20.57 4.05 16.51 (1.18) (1.00) (0.17)
Agnico-Eagle 6/3/89 8.25 354.16 7.13 372.99 7.50 363.48 (13.64) 5.32 (18.95) 5.26 2.55) 7.81
The Chubb Corporation 6/2/89 64.63 354.69 70.88 372.99 68.38 363.48 9.67 5.16 4.51 (3.53) (2.55) (0.98)
Barry Wright Corp. 5/30/89 5.38 355.77 8.13 366.30 12.25 375.71 51.16 2.96 48.20 50.77 2.57 48.20
"National
Realty, L.P." 5/26/89 8.88 356.58 8.00 369.19 8.75 373.30 (9.86) 3.54 (13.40) 9.38 1.11 8.26
Coeur D'Alene
Mines Corp. 5/24/89 18.00 353.98 16.38 366.05 17.25 368.43 (9.03) 3.41 (12.44) 5.34 0.65 4.69
Johnson Controls Inc. 5/24/89 36.25 353.98 41.63 366.05 38.63 368.43 14.83 3.41 11.42 (7.21) 0.65 (7.86)
Signet Banking Corp. 5/23/89 35.88 353.91 35.75 364.72 36.25 366.56 (0.35) 3.05 (3.40) 1.40 0.50 0.89
TCF Financial Corp. 5/23/89 12.25 353.91 13.00 364.72 13.38 366.56 6.12 3.05 3.07 2.88 0.50 2.38
"Donaldson
Company, Inc." 5/19/89 17.75 357.49 17.63 368.76 17.25 368.12 (0.70) 3.15 (3.86) (2.13) (0.17) (1.95)
Allergan Inc. 5/18/89 NA 353.38 NA 365.47 NA 367.74 NA 3.42 NA NA 0.62 N/A
Compaq Computer Corp. 5/18/89 79.38 353.38 83.00 365.47 91.75 367.74 4.57 3.42 1.15 10.54 0.62 9.92
Micropolis Corp. 5/18/89 6.75 353.38 6.13 365.47 5.38 367.74 (9.26) 3.42 (12.68) (12.24) 0.62 (12.87)
Sensormatic
Electronics Corp. 5/18/89 11.63 353.38 12.63 365.47 11.75 367.74 8.65 3.42 5.22 (6.97) 0.62 (7.59)
First Eastern Corp. 5/17/89 34.00 354.30 33.00 364.89 35.00 366.20 (2.94) 2.99 (5.93) 6.06 0.36 5.70
Ltx Corp. 5/17/89 6.25 354.30 4.63 364.89 3.25 366.20 (26.00) 2.99 (28.99) (29.73) 0.36 (30.09)
Cray Research Inc. 5/15/89 54.88 348.01 55.75 363.67 53.00 370.72 1.59 4.50 (2.91) (4.93) 1.94 (6.87)
Electro
Scientific Ind. Inc. 5/15/89 11.75 348.01 12.63 363.67 13.88 370.72 7.45 4.50 2.95 9.90 1.94 7.96
Biogen Inc. 5/12/89 12.75 347.46 12.63 360.88 13.88 373.21 (0.94) 3.86 (4.80) 9.86 3.42 6.44
Corporate
Software Inc. 5/12/89 10.00 347.46 14.00 360.88 14.25 373.21 40.00 3.86 36.14 1.79 3.42 (1.63)
Universal
Voltronics Corp. 5/12/89 1.25 347.46 1.63 360.88 1.59 373.21 30.00 3.86 26.14 (1.91) 3.42 (5.32)
"Amwest Insurance
Group, Inc." 5/11/89 10.88 341.90 10.75 353.48 11.75 373.53 (1.19) 3.39 (4.58) 9.30 5.67 3.63
Carpenter
Technology Corp. 5/11/89 46.88 341.90 46.50 353.48 51.13 373.53 (0.81) 3.39 (4.20) 9.96 5.67 4.28
Cycare Systems Inc. 5/11/89 7.00 341.90 7.00 353.48 7.00 373.53 0.00 3.39 (3.39) 0.00 5.67 (5.67)
Health Images Inc. 5/11/89 6.63 341.90 6.50 353.48 6.38 373.53 (1.89) 3.39 (5.27) (1.92) 5.67 (7.60)
Hein-Werner 5/9/89 15.00 344.24 17.25 352.24 17.88 371.10 15.00 2.32 12.68 3.62 5.35 (1.73)
International
Broadcasting 5/6/89 9.63 342.30 11.00 354.16 10.13 368.52 14.29 3.46 10.82 (7.95) 4.05 (12.01)
Service Merchandise Co.5/5/89 15.00 342.30 19.63 354.16 19.50 368.52 30.83 3.46 27.37 (0.64) 4.05 (4.69)
Southwestern Energy Co.5/5/89 21.00 342.30 23.50 354.16 26.38 368.52 11.90 3.46 8.44 12.23 4.05 8.18
Sun Microsystem Inc. 5/5/89 17.13 342.30 17.00 354.16 18.63 368.52 (0.73) 3.46 (4.19) 9.56 4.05 5.50
"Central
Fidelity Banks, Inc." 5/3/89 29.00 340.97 30.00 354.99 30.50 369.46 3.45 4.11 (0.66) 1.67 4.08 (2.41)
Perkin Elmer Corp. 5/3/89 21.88 340.97 24.75 354.99 25.25 369.46 13.14 4.11 9.03 2.02 4.08 (2.06)
Pioneer Hi
Bred Intl Inc. 5/3/89 38.00 340.97 37.50 354.99 40.50 369.46 (1.32) 4.11 (5.43) 8.00 4.08 3.92
Puritan Bennett Corp. 5/3/89 19.25 340.97 22.00 354.99 24.75 369.46 14.29 4.11 10.17 12.50 4.08 8.42
Sizeler Property
Invest. Inc. 5/3/89 16.00 340.97 16.13 354.99 15.13 369.46 0.78 4.11 (3.33) (6.20) 4.08 (10.28)
CPI Corp. 5/1/89 24.63 341.29 24.50 355.77 25.38 366.30 (0.51) 4.24 (4.75) 3.57 2.96 0.61
Milton Roy 4/28/89 13.50 339.42 13.25 356.58 16.50 369.19 (1.85) 5.06 (6.91) 24.53 3.54 20.99
Teco Energy Inc. 4/28/89 22.75 339.42 24.00 356.58 24.50 369.19 5.49 5.06 0.44 2.08 3.54 (1.45)
Charming Shoppes Inc. 4/27/89 15.63 336.86 14.38 356.82 17.63 366.50 (8.00) 5.93 (13.93) 22.61 2.71 19.90
NWA Inc. 4/27/89 68.25 336.86 100.00 356.82 104.88 366.50 46.52 5.93 40.59 4.88 2.71 2.16
Church & Dwight 4/26/89 11.25 336.92 13.50 353.98 13.13 366.05 20.00 5.06 14.94 (2.78) 3.41 (6.19)
W.W. Grainger Inc. 4/26/89 52.50 336.92 57.75 353.98 63.38 366.05 10.00 5.06 4.94 9.74 3.41 6.33
Pioneer Standard
Electr. Inc. 4/25/89 9.25 336.02 9.25 353.91 9.00 364.72 0.00 5.32 (5.32) (2.70) 3.05 (5.76)
Sanderson Farms Inc. 4/25/89 14.25 336.02 16.25 353.91 18.25 364.72 14.04 5.32 8.71 12.31 3.05 9.25
Ameribanc Inc. 4/21/89 20.94 332.79 20.75 357.49 19.50 368.76 (0.91) 7.42 (8.33) (6.02) 3.15 (9.18)
"CB&T
Bancshares, Inc." 4/20/89 11.75 336.86 14.00 353.38 14.75 365.47 19.15 4.90 14.24 5.36 3.42 1.94
Dunkin Donuts Inc. 4/20/89 32.00 336.86 37.88 353.38 38.13 365.47 18.36 4.90 13.46 0.66 3.42 (2.76)
Apple Computer Inc. 4/19/89 34.88 335.85 40.88 354.30 45.25 364.89 17.20 5.49 11.71 10.69 2.99 7.70
Consolidated Stores 4/18/89 7.63 335.85 7.63 348.01 7.38 362.52 0.00 3.62 (3.62) (3.21) 4.17 (7.38)
Income Opportunity
Rlty Trust 4/14/89 4.38 346.01 7.25 347.76 8.63 360.88 65.71 0.51 65.21 18.97 3.77 15.19
Chemical Banking Corp.4/13/89 31.50 342.97 34.63 341.90 33.63 353.48 9.92 (0.31) 10.23 (2.89) 3.39 (6.28)
Credo Petroleum Inc. 4/13/89 1.88 342.97 1.94 341.90 2.13 353.48 3.19 (0.31) 3.50 9.79 3.39 6.41
Federal Rlty
Invt Trust 4/13/89 23.13 342.97 23.00 341.90 23.63 353.48 (0.54) (0.31) (0.23) 2.72 3.39 (0.67)
Super Valu Stores Inc.4/12/89 24.38 340.95 24.13 344.95 27.00 352.15 (1.03) 1.17 (2.20) 11.92 2.09 9.83
Trinity Inds. Inc. 4/11/89 33.75 341.21 36.25 344.24 34.88 339.43 7.41 0.89 6.52 (3.79) 1.40) (2.40)
Immucor Inc. 4/10/89 5.38 338.17 6.13 342.48 5.75 352.24 13.95 1.27 12.68 (6.12) 2.85 (8.97)
US West Inc. 4/7/89 62.00 339.43 62.50 342.30 65.38 354.16 0.81 0.85 (0.04) 4.60 3.46 1.14
Trimedyne 4/4/89 14.50 339.55 13.38 341.29 12.75 354.61 (7.76) 0.51 (8.27) (4.67) 3.90 (8.58)
Brunswick Corp. 4/3/89 17.63 336.35 19.25 341.29 19.25 355.77 9.19 1.47 7.72 0.00 4.24 (4.24)
Farr Co. 4/3/89 10.00 336.35 10.75 341.29 10.25 355.77 7.50 1.47 6.03 (4.65) 4.24 (8.89)
Ferro Corp. 4/3/89 34.00 336.35 43.88 341.29 47.63 355.77 29.04 1.47 27.58 8.55 4.24 4.30
"J.P.
Industries, Inc." 3/30/89 13.00 331.48 17.25 336.86 16.38 353.98 32.69 1.62 31.07 (5.07) 5.08 (10.15)
"The Home Group, Inc."3/30/89 13.63 331.48 14.00 336.86 12.75 353.98 2.75 1.62 1.13 (8.93) 5.08 (14.01)
"Shaw
Industries, Inc." 3/29/89 24.75 333.48 24.13 336.92 29.00 353.98 (2.53) 1.03 (3.56) 20.21 5.06 15.14
Beckman Instruments 3/28/89 19.00 332.24 19.25 336.02 19.50 353.91 1.32 1.14 0.18 1.30 5.32 (4.03)
Bell Atlantic Corp. 3/28/89 72.88 332.24 76.00 336.02 80.25 353.91 4.29 1.14 3.15 5.59 5.32 0.27
"Electromagnetic
Sciences, Inc." 3/27/89 7.13 331.33 6.88 334.73 7.50 356.15 (3.51) 1.03 (4.53) 9.09 6.40 2.69
"NWA, Inc." 3/27/89 69.38 331.33 70.38 334.73 100.25 356.15 1.44 1.03 0.42 42.45 6.40 36.05
Pinnacle West
Capital Corp. 3/27/89 15.25 331.33 13.75 334.73 14.00 356.15 (9.84) 1.03 (10.86) 1.82 6.40 (4.58)
Synalloy Corp. 3/27/89 7.63 331.33 7.75 334.73 8.63 356.15 1.64 1.03 0.61 11.29 6.40 4.89
PLM International 3/23/89 8.13 337.10 9.38 332.79 9.25 357.49 15.38 1.28) 16.66 (1.33) 7.42 (8.76)
Upjohn Co. 3/23/89 30.75 337.10 27.75 332.79 29.75 357.49 (9.76) (1.28) (8.48) 7.21 7.42 (0.21)
Porta Systems Corp. 3/22/89 10.13 335.96 12.00 334.54 11.63 353.38 18.52 (0.42) 18.94 (3.13) 5.63 (8.76)
Cambridge
Bioscience Corp. 3/21/89 14.50 342.07 14.13 335.85 13.75 352.87 (2.59) (1.82) (0.77) (2.65) 5.07 (7.72)
Fluorocarbon Co. 3/21/89 13.63 342.07 13.00 335.85 13.25 352.87 (4.59) (1.82) (2.77) 1.92 5.07 (3.14)
"Baxter
International, Inc." 3/20/89 19.75 342.66 19.38 334.17 19.50 352.87 (1.90) (2.48) 0.58 0.65 5.60 (4.95)
Archive Corp. 3/17/89 10.50 340.45 10.13 337.78 10.88 348.01 (3.57) (0.78) (2.79) 7.41 3.03 4.38
"Flowers
Industries, Inc." 3/17/89 16.50 340.45 16.88 337.78 18.63 348.01 2.27 (0.78) 3.06 10.37 3.03 7.34
Raven Industries 3/16/89 8.75 339.84 10.50 346.01 10.75 347.76 20.00 1.82 18.18 2.38 0.51 1.88
"Texaco, Inc." 3/16/89 50.00 339.84 53.63 346.01 53.88 347.76 7.25 1.82 5.43 0.47 0.51 (0.04)
Genzyme Corp. 3/15/89 8.75 336.74 9.50 342.97 10.38 341.90 8.57 1.85 6.72 9.21 (0.31) 9.52
Morgan Products Ltd. 3/15/89 15.63 336.74 15.00 342.97 15.50 341.90 (4.00) 1.85 (5.85) 3.33 (0.31) 3.65
Orion Capital Corp. 3/15/89 20.00 336.74 20.88 342.97 20.50 341.90 4.38 1.85 2.52 (1.80) (0.31) (1.48)
Texas Eastern Corp. 3/15/89 49.38 336.74 50.13 342.97 51.13 341.90 1.52 1.85 (0.33) 2.00 (0.31) 2.31
Grubb & Ellis Co. 3/13/89 4.00 337.26 3.75 341.21 4.00 344.24 (6.25) 1.17 (7.42) 6.67 0.89 5.78
Johnstown Cons.
Rlty Trust 3/13/89 5.88 337.39 6.50 341.21 7.25 344.24 10.64 1.13 9.51 11.54 0.89 10.65
International
Minerals & Chemical 3/10/89 39.88 342.16 40.00 338.17 41.25 342.48 0.31 (1.17) 1.48 3.13 1.27 1.85
Moore Medical Corp. 3/9/89 11.50 345.31 12.88 339.43 13.00 342.30 11.96 (1.70) 13.66 0.97 0.85 0.13
General
Instrument Corp. 3/8/89 33.00 346.41 31.13 339.81 29.13 339.89 (5.68) (1.91) (3.78) (6.43) 0.02 (6.45)
Pacific Enterprises 3/7/89 40.25 342.59 41.50 339.55 39.13 340.97 3.11 (0.89) 3.99 (5.72) 0.42 (6.14)
"Premark
International, Inc." 3/7/89 31.75 342.59 32.63 339.55 33.63 340.97 2.76 (0.89) 3.64 3.07 0.42 2.65
Outboard Marine Corp. 3/6/89 32.38 343.84 32.50 340.39 34.38 340.14 0.39 (1.00) 1.39 5.77 (0.07) 5.84
Wynn's International 3/3/89 25.00 343.62 26.38 336.35 26.88 341.29 5.50 (2.12) 7.62 1.90 1.47 0.43
"American
Water Works, Inc." 3/2/89 18.25 343.87 19.63 334.82 19.50 339.42 7.53 (2.63) 10.17 (0.64) 1.37 (2.01)
"Information
Resources, Inc." 3/2/89 11.50 343.87 12.88 334.82 13.88 339.42 11.96 (2.63) 14.59 7.77 1.37 6.39
Finnigan Corp. 3/1/89 16.25 344.20 16.75 331.48 15.00 336.86 3.08 (3.70) 6.77 (10.45) 1.62 (12.07)
Longview Fibre 3/1/89 66.88 344.20 63.88 331.48 65.00 336.86 (4.49) (3.70) (0.79) 1.76 1.62 0.14
Seagull Energy 3/1/89 15.75 344.20 17.25 331.48 16.38 336.86 9.52 (3.70) 13.22 (5.07) 1.62 (6.70)
Shawmut National Corp. 3/1/89 24.88 344.20 24.25 331.48 25.00 336.86 (2.51) (3.70) 1.18 3.09 1.62 1.47
"Bohemia, Inc." 2/28/89 18.00 340.96 19.00 333.48 17.75 336.02 5.56 (2.19) 7.75 (6.58) 0.76 (7.34)
Health-Chem Corp. 2/28/89 2.88 340.96 2.75 333.48 2.63 336.92 (4.35) (2.19) (2.15) (4.55) 1.03 (5.58)
IFR Systems 2/28/89 11.75 340.96 10.25 333.48 11.50 336.92 (12.77) (2.19) (10.57) 12.20 1.03 11.16
North Fork Bancorp 2/28/89 18.25 340.96 18.25 333.48 18.88 336.92 0.00 (2.19) 2.19 3.42 1.03 2.39
"Burlington
Resources, Inc." 2/23/89 39.75 333.99 49.63 337.10 43.13 332.79 24.84 0.93 23.91 (13.10) (1.28) (11.82)
Cyprus Minerals Co. 2/23/89 36.25 333.99 39.88 337.10 38.38 332.79 10.00 0.93 9.07 (3.76) (1.28) (2.48)
Microage Industries 2/23/89 6.88 333.99 6.75 337.10 7.00 332.79 (1.82) 0.93 (2.75) 3.70 (1.28) 4.98
"Skipper's, Inc." 2/23/89 7.75 333.99 9.13 337.10 7.13 332.79 17.74 0.93 16.81 (21.92) (1.28) (20.64)
"Independence
Bancorp, Inc." 2/22/89 19.50 333.99 22.38 335.96 20.13 334.54 14.74 0.59 14.15 (10.06) (0.42) (9.63)
Liqui Box Corp. 2/22/89 49.00 333.99 48.00 335.96 52.00 334.54 (2.04) 0.59 (2.63) 8.33 (0.42) 8.76
Southtrust 2/22/89 20.43 333.99 21.50 335.96 21.25 334.54 5.22 0.59 4.63 (1.16) (0.42) (0.74)
"Silicon
Systems, Inc." 2/21/89 11.00 328.83 10.63 342.07 10.63 335.85 (3.41) 4.03 (7.44) 0.00 (1.82) 1.82
"DeSoto, Inc." 2/20/89 38.75 328.83 48.25 342.66 50.13 334.17 24.52 4.21 20.31 3.89 (2.48) 6.36
General
Development Corp. 2/17/89 15.50 331.41 17.50 342.66 14.75 334.17 12.90 3.39 9.51 (15.71) (2.48) (13.24)
General
Housewares Corp. 2/17/89 7.25 331.41 8.00 342.66 12.63 334.17 10.34 3.39 6.95 57.81 (2.48) 60.29
LSB Industries 2/17/89 2.25 331.41 2.88 342.66 2.63 334.17 27.78 3.39 24.38 (8.70) (2.48) (6.22)
"Andover
Bancorp, Inc." 2/16/89 14.88 331.87 15.63 340.45 14.63 337.78 5.04 2.59 2.46 (6.40) (0.78) (5.62)
Dynatech 2/16/89 18.50 331.87 18.75 340.45 18.25 337.78 1.35 2.59 (1.23) (2.67) (0.78) (1.88)
Sterling Bancorp 2/16/89 10.75 331.87 9.50 340.45 9.88 337.78 (11.63) 2.59 (14.21) 3.95 (0.78) 4.73
Western Microwave 2/16/89 2.00 331.87 2.25 340.45 1.63 337.78 12.50 2.59 9.91 (27.78) (0.78) (26.99)
Chase Manhattan Corp. 2/15/89 31.63 331.56 32.25 339.84 34.38 346.01 1.98 2.50 (0.52) 6.59 1.82 4.77
First Midwest Bancorp 2/15/89 16.83 331.56 16.50 339.84 17.83 346.01 (1.98) 2.50 (4.48) 8.08 1.82 6.26
Legget & Platt 2/15/89 24.00 331.56 24.88 339.84 25.63 346.01 3.65 2.50 1.15 3.02 1.82 1.20
Ashton-Tate Corp. 2/13/89 21.88 328.89 22.75 337.39 19.75 340.95 4.00 2.58 1.42 (13.19) 1.06 (14.24)
"Diebold, Inc." 2/10/89 39.25 328.81 43.25 337.26 46.25 341.21 10.19 2.57 7.62 6.94 1.17 5.77
James River Corp. 2/9/89 28.13 327.99 29.63 342.16 29.25 339.43 5.33 4.32 1.01 (1.27) (0.80) (0.47)
Norton Co. 2/9/89 50.00 327.99 49.75 342.16 48.25 339.43 (0.50) 4.32 (4.82) (3.02) (0.80) (2.22)
Preston Corp. 2/9/89 17.50 327.99 16.00 342.16 15.25 338.17 (8.57) 4.32 (12.89) (4.69) (1.17) (3.52)
Carlisle Companies 2/8/89 34.13 326.29 33.88 345.31 36.50 339.43 (0.73) 5.83 (6.56) 7.75 (1.70) 9.45
Harnischfeger
Industries 2/6/89 16.75 325.04 18.25 343.84 17.50 340.39 8.96 5.78 3.17 (4.11) (1.00) (3.11)
Dresher Inc. 2/3/89 5.75 324.93 5.63 343.84 5.38 340.39 (2.17) 5.82 (7.99) (4.44) (1.00) (3.44)
Hemotec Inc. 2/3/89 4.19 324.93 5.63 343.84 4.63 340.39 34.31 5.82 28.49 (17.78) (1.00) (16.77)
Marriott Corp. 2/3/89 32.75 324.93 33.00 343.84 31.13 340.39 0.76 5.82 (5.06) (5.68) (1.00) (4.68)
Raychem Corp. 2/3/89 35.00 324.93 36.75 343.84 34.25 340.39 5.00 5.82 (0.82) (6.80) (1.00) (5.80)
"Temple-Inland, Inc. 2/3/89 48.75 324.93 56.25 343.84 53.38 340.39 15.38 5.82 9.56 (5.11) (1.00) (4.11)
Park
Electrochemical Corp.2/2/89 16.38 324.41 15.38 343.62 16.63 336.35 (6.11) 5.92 (12.03) 8.13 (2.12) 10.25
Universal Corp. 2/2/89 33.38 324.41 34.13 343.62 35.25 336.35 2.25 5.92 (3.67) 3.30 (2.12) 5.41
Cadmus
Communications Corp. 2/1/89 12.75 323.44 12.75 343.87 13.00 334.82 0.00 6.32 (6.32) 1.96 (2.63) 4.59
General Dynamics Corp.2/1/89 50.88 323.44 50.00 343.87 50.88 334.82 (1.73) 6.32 (8.05) 1.76 (2.63) 4.39
"Pratt
& Lambert, Inc." 2/1/89 16.13 323.44 15.13 343.87 14.00 334.82 (6.20) 6.32 (12.52) (7.44) (2.63) (4.81)
United
Companies Financial 2/1/89 18.86 323.44 17.50 343.87 21.36 334.82 (7.23) 6.32 (13.55) 22.08 (2.63) 24.71
Super Food Services 1/27/89 17.75 337.24 17.00 321.26 17.75 331.33 (4.23) (4.74) 0.51 4.41 3.13 1.28
Handy & Harman 1/26/89 17.50 320.49 17.13 337.24 18.50 331.33 (2.14) 5.23 (7.37) 8.03 (1.75) 9.78
Interlake Corp. 1/26/89 41.13 320.49 44.38 337.24 43.00 331.33 7.90 5.23 2.68 (3.10) (1.75) (1.35)
"Morton Thiokol, Inc."1/26/89 38.13 320.49 39.75 337.24 40.00 331.33 4.26 5.23 (0.96) 0.63 (1.75) 2.38
Trinova Corp. 1/26/89 27.25 320.49 28.13 337.24 29.25 331.33 3.21 5.23 (2.02) 4.00 (1.75) 5.75
USLIFE Corp. 1/26/89 33.63 320.49 37.88 337.24 36.38 331.33 12.64 5.23 7.41 (3.96) (1.75) (2.21)
Sherwin-Williams Co. 1/25/89 25.50 320.18 25.88 333.99 26.50 337.10 1.47 4.31 (2.84) 2.42 0.93 1.48
Standex
International Corp. 1/25/89 20.38 320.18 22.00 333.99 22.88 337.10 7.98 4.31 3.66 3.98 0.93 3.05
"Amgen, Inc." 1/24/89 33.38 321.28 36.75 333.26 37.50 335.96 10.11 3.73 6.38 2.04 0.81 1.23
Waltham Corp. 1/23/89 10.00 319.89 10.25 328.83 10.25 342.07 2.50 2.79 (0.29) 0.00 4.03 (4.03)
"Fairchild
Industries, Inc." 1/21/89 15.75 320.54 16.13 331.41 12.38 342.66 2.38 3.39 (1.01) (23.26) 3.39 (26.65)
Southmark Corp. 1/20/89 1.75 320.54 2.00 331.41 1.63 342.66 14.29 3.39 10.89 (18.75) 3.39 (22.14)
Whitman Corp. 1/20/89 35.75 320.54 36.88 331.41 34.38 342.66 3.15 3.39 (0.24) (6.78) 3.39 (10.17)
Emulex Corp. 1/19/89 10.63 320.51 11.00 331.87 11.38 340.45 3.53 3.54 (0.01) 3.41 2.59 0.82
Intel Corp. 1/19/89 23.25 320.51 24.25 331.87 26.25 340.45 4.30 3.54 0.76 8.25 2.59 5.66
"NBI, Inc." 1/19/89 2.00 320.51 1.63 331.87 1.88 340.45 (18.75) 3.54 (22.29) 15.38 2.59 12.80
"Ogilvy &
Mather Group, Inc." 1/19/89 25.75 317.41 30.75 327.99 30.75 342.16 19.42 3.33 16.08 0.00 4.32 (4.32)
"Premier
Bancorp, Inc." 1/19/89 4.13 320.51 4.75 331.87 4.88 340.45 15.15 3.54 11.61 2.63 2.59 0.05
"Time, Inc." 1/19/89 99.25 320.51 110.38 331.87 108.50 340.45 11.21 3.54 7.66 (1.70) 2.59 (4.28)
Union Planters Corp. 1/19/89 12.50 320.51 12.63 331.87 14.13 340.45 1.00 3.54 (2.54) 11.88 2.59 9.30
PHH Corporation 1/17/89 33.75 316.24 33.88 327.98 32.75 336.74 0.37 3.71 (3.34) (3.32) 2.67 (5.99)
Southwestern
Bell Corp. 1/17/89 40.75 323.38 43.50 339.55 43.75 332.24 6.75 5.00 1.75 0.57 (2.15) 2.73
"Computer
Task Group, Inc." 1/16/89 14.63 316.24 12.88 328.89 13.13 337.39 (11.97) 4.00 (15.97) 1.94 2.58 (0.64)
Ekco Group 1/11/89 3.13 318.43 3.25 326.29 3.38 345.31 4.00 2.47 1.53 3.85 5.83 (1.98)
"Caesars World, Inc." 1/10/89 24.50 319.06 32.00 324.33 32.13 346.41 30.61 1.65 28.96 0.39 6.81 (6.42)
Willcox & Gibbs Inc. 1/10/89 15.75 319.06 16.75 324.33 17.63 346.41 6.35 1.65 4.70 5.22 6.81 (1.58)
Associated
Communications 1/3/89 21.67 319.85 24.00 321.26 32.00 344.20 10.77 0.44 10.33 33.33 7.14 26.19
Houghton Mifflin Co. 12/31/88 34.75 313.78 34.38 321.26 36.38 340.96 (1.08) 2.38 (3.46) 5.82 6.13 (0.31)
A.G. Edwards 12/30/88 13.79 313.16 14.96 323.38 17.29 339.55 8.45 3.26 5.18 15.58 5.00 10.58
"Athlone
Industries, Inc." 12/29/88 12.13 315.12 16.19 323.38 14.94 339.55 33.51 2.62 30.89 (7.72) 5.00 (12.72)
Numerica
Financial Corp. 12/29/88 8.88 315.12 9.13 323.38 8.75 339.55 2.82 2.62 0.20 (4.11) 5.00 (9.11)
"Champion
Products, Inc." 12/28/88 48.25 311.96 55.75 320.49 59.63 337.24 15.54 2.73 12.81 6.95 5.23 1.72
Lockheed Corp. 12/23/88 39.25 307.64 42.75 321.28 43.63 333.99 8.92 4.43 4.48 2.05 3.96 (1.91)
"Big Bear, Inc." 12/22/88 26.25 309.45 34.88 319.89 37.25 328.83 32.86 3.37 29.48 6.81 2.79 4.02
"First
Bank System, Inc." 12/22/88 20.13 309.45 19.75 319.89 19.88 328.83 (1.86) 3.37 (5.24) 0.63 2.79 (2.16)
Ameritech 12/21/88 46.44 309.45 48.38 320.51 47.94 331.56 4.17 3.57 0.60 (0.90) 3.45 (4.35)
Commercial
Federal Corp. 12/20/88 8.63 306.14 7.38 320.51 8.13 331.87 (14.49) 4.69 (19.19) 10.17 3.54 6.63
Old Kent
Financial Corp. 12/20/88 22.00 306.14 23.63 320.51 22.63 331.87 7.39 4.69 2.69 (4.23) 3.54 (7.78)
Puget Sound Bancorp 12/20/88 18.88 306.14 19.25 320.51 19.25 331.87 1.99 4.69 (2.71) 0.00 3.54 (3.54)
"Combustion
Engineering, Inc." 12/19/88 26.38 306.36 27.38 321.97 29.75 331.56 3.79 5.10 (1.30) 8.68 2.98 5.70
SEI Corp. 12/19/88 17.50 306.36 17.50 321.97 16.50 331.56 0.00 5.10 (5.10) (5.71) 2.98 (8.69)
Coherent Inc. 12/16/88 9.00 306.36 9.75 316.24 10.88 328.81 8.33 3.22 5.11 11.54 3.97 7.56
AIFS Inc. 12/15/88 5.44 302.84 5.00 316.24 5.31 328.89 (8.05) 4.42 (12.48) 6.26 4.00 2.26
"BayBanks, Inc. " 12/15/88 44.75 302.84 44.25 316.24 41.50 328.89 (1.12) 4.42 (5.54) (6.21) 4.00 (10.21)
Checkpoint Systems 12/15/88 9.00 302.84 9.00 316.24 9.25 328.89 0.00 4.42 (4.42) 2.78 4.00 (1.22)
McDonald's Corp. 12/14/88 46.50 308.44 47.38 317.41 47.63 328.81 1.88 2.91 (1.03) 0.53 3.59 (3.06)
Boise Cascade Corp. 12/13/88 40.38 307.73 40.38 318.42 40.00 326.29 0.00 3.47 (3.47) (0.93) 2.47 (3.40)
"Hubbell, Inc." 12/13/88 31.91 307.73 32.50 318.42 35.75 327.99 1.86 3.47 (1.61) 10.00 3.01 6.99
Versa Technologies 12/13/88 14.17 307.73 13.33 318.42 14.17 327.99 (5.91) 3.47 (9.38) 6.28 3.01 3.27
"Prospect
Group, Inc." 12/12/88 9.38 308.11 9.75 318.43 9.63 326.29 4.00 3.35 0.65 (1.28) 2.47 (3.75)
Citizens Bancorp 12/11/88 25.25 308.11 23.88 319.06 22.75 324.93 (5.45) 3.55 (9.00) (4.71) 1.84 (6.55)
"Liz Claiborne, Inc." 12/8/88 17.00 314.61 16.25 318.46 18.50 325.04 (4.41) 1.22 (5.64) 13.85 2.07 11.78
Ingersoll-Rand Co. 12/7/88 33.88 316.75 33.63 320.54 36.00 324.93 (0.74) 1.20 (1.93) 7.06 1.37 5.69
Novell Inc. 12/7/88 30.50 316.75 31.50 320.54 32.00 324.93 3.28 1.20 2.08 1.59 1.37 0.22
Westinghouse
Electric Corp. 12/7/88 52.25 316.75 53.38 320.54 54.00 324.93 2.15 1.20 0.96 1.17 1.37 (0.20)
Walbro Corporation 12/6/88 19.13 315.36 16.75 319.85 17.00 324.41 (12.42) 1.42 (13.84) 1.49 1.43 0.07
"Pegasus Gold, Inc." 12/2/88 13.25 321.51 13.50 313.16 11.50 318.66 1.89 (2.60) 4.48 (14.81) 1.76 (16.57)
American
Presidents' Cos. Ltd.11/29/88 32.38 321.26 31.63 311.96 33.63 320.49 (2.32) (2.89) 0.58 6.32 2.73 3.59
"Borden, Inc." 11/29/88 57.00 321.26 56.00 311.96 58.75 320.49 (1.75) (2.89) 1.14 4.91 2.73 2.18
"Borden, Inc." 11/29/88 57.00 321.26 56.00 311.96 58.75 320.49 (1.75) (2.89) 1.14 4.91 2.73 2.18
"CRS Sirrine, Inc." 11/29/88 23.13 321.26 24.25 311.96 25.75 320.49 4.86 (2.89) 7.76 6.19 2.73 3.45
Affiliated Banc Corp. 11/28/88 9.38 320.67 8.75 309.42 8.75 320.18 (6.67) (3.51) (3.16) 0.00 3.48 (3.48)
Chevron Corp. 11/22/88 47.00 325.66 44.50 307.55 46.88 320.54 (5.32) (5.56) 0.24 5.34 4.22 1.11
Louisiana
Gen Svcs Inc. 11/22/88 12.875 319.18 12.50 306.14 12.75 320.54 (2.91) (4.09) 1.17 2.00 4.70 (2.70)
First Interstate
Bancorp 11/21/88 49.50 325.48 46.75 306.14 44.75 320.51 (5.56) (5.94) 0.39 (4.28) 4.69 (8.97)
Whittaker Corp. 11/21/88 35.00 325.48 42.00 306.14 43.88 320.51 20.00 (5.94) 25.94 4.46 4.69 (0.23)
Tiffany & Co. 11/18/88 44.25 326.84 43.50 306.36 39.63 321.97 (1.69) (6.27) 4.57 (8.91) 5.10 (14.00)
Battle
Mountain Gold Co. 11/11/88 15.00 316.70 16.00 308.11 14.63 319.06 6.67 (2.71) 9.38 (8.59) 3.55 (12.15)
"California
Energy, Inc." 11/11/88 8.09 316.70 8.33 308.11 10.08 318.43 2.97 (2.71) 5.68 21.00 3.35 17.65
"SPS
Technologies, Inc." 11/11/88 44.50 316.70 42.88 308.11 43.00 319.06 (3.65) (2.71) (0.94) 0.29 3.55 (3.26)
"RJR Nabisco, Inc." 11/10/88 56.00 316.32 89.38 315.00 89.88 318.46 59.60 (0.42) 60.02 0.56 1.10 (0.54)
"Computer
Products, Inc." 11/9/88 2.00 314.92 2.00 314.61 2.00 320.54 0.00 (0.10) 0.10 0.00 1.88 (1.88)
"Motorola, Inc." 11/9/88 39.75 314.92 39.25 314.61 40.25 320.54 (1.26) (0.10) (1.16) 2.55 1.88 0.66
"Businessland, Inc." 11/8/88 13.13 319.62 12.75 316.75 13.63 319.85 (2.86) (0.90) (1.96) 6.86 0.98 5.88
Lotus Development Corp.11/8/88 15.63 319.62 17.00 316.75 18.25 319.85 8.80 (0.90) 9.70 7.35 0.98 6.37
Pacific Scientific Co. 11/8/88 12.75 319.62 11.25 316.75 10.75 319.85 (11.76) (0.90) (10.87) (4.44) 0.98 (5.42)
Shaklee Corp. 11/8/88 20.00 319.62 22.13 316.75 26.13 319.85 10.63 (0.90) 11.52 18.08 0.98 17.10
"Church's
Fried Chicken, Inc." 11/7/88 6.88 319.72 7.75 315.36 8.38 313.92 12.73 (1.36) 14.09 8.06 (0.46) 8.52
Contel Corp. 11/3/88 37.13 312.66 38.75 321.51 39.00 313.78 4.38 2.83 1.55 0.65 (2.40) 3.05
Ampco-Pittsburg Corp. 11/1/88 12.88 310.42 13.00 321.24 12.50 311.96 0.97 3.49 (2.51) (3.85) (2.89) (0.96)
Emerson Electric Co. 11/1/88 29.88 310.42 30.50 321.24 29.50 311.96 2.09 3.49 (1.39) (3.28) (2.89) (0.39)
Precision
Castparts Corp. 11/1/88 35.25 310.42 33.50 321.24 33.75 311.96 (4.96) 3.49 (8.45) 0.75 (2.89) 3.64
CNW Corp. 10/31/88 28.00 311.14 27.38 321.26 26.00 309.42 (2.23) 3.25 (5.48) (5.02) (3.69) (1.34)
Lubrizol Corp. 10/31/88 34.13 311.14 37.00 321.26 34.88 309.42 8.42 3.25 5.17 (5.74) (3.69) (2.06)
"Automated
Systems, Inc." 10/28/88 3.50 311.67 4.81 320.67 4.00 307.64 37.51 2.89 34.63 (16.89) (4.06) (12.83)
Dexter Corp. 10/28/88 22.75 311.67 24.63 320.67 22.75 307.64 8.24 2.89 5.35 (7.61) (4.06) (3.55)
HRE Properties 10/28/88 24.38 311.67 25.75 320.67 25.50 307.64 5.64 2.89 2.75 (0.97) (4.06) 3.09
Triad Systems Corp. 10/28/88 14.75 342.16 16.00 338.17 18.00 342.48 8.47 (1.17) 9.64 12.50 1.27 11.23
"TNP Enterprises, Inc."10/24/88 19.75 308.40 19.50 325.48 19.38 306.14 (1.27) 5.54 (6.80) (0.64) (5.94) 5.30
UTL Corp. 10/21/88 5.25 309.40 4.63 326.84 4.00 306.36 (11.90) 5.64 (17.54) (13.51) (6.27) (7.25)
SPX Corp. 10/19/88 34.50 310.11 36.88 318.81 33.75 302.84 6.88 2.81 4.08 (8.47) (5.01) (3.47)
"Washington
Bancorp, Inc." 10/19/88 17.00 310.11 16.00 318.81 14.25 302.84 (5.88) 2.81 (8.69) (10.94) (5.01) (5.93)
Manufacturers
Hanover Corp. 10/18/88 30.00 309.47 27.88 321.44 28.25 308.44 (7.08) 3.87 (10.95) 1.35 (4.04) 5.39
"Delchamps, Inc." 10/17/88 20.63 308.45 26.75 317.75 20.25 307.73 29.70 3.02 26.68 (24.30) (3.15) (21.15)
Proler
International Corp. 10/14/88 67.25 310.81 62.50 316.70 61.38 308.11 (7.06) 1.90 (8.96) (1.80) (2.71) 0.91
Perpetual
Financial Corp. 10/13/88 8.13 307.94 8.63 316.32 9.25 315.00 6.15 2.72 3.43 7.25 (0.42) 7.66
"Endevco, Inc." 10/6/88 5.00 304.67 6.13 312.66 6.75 321.51 22.50 2.62 19.88 10.20 2.83 7.37
"Global Natural
Resources, Inc." 10/5/88 5.63 304.72 5.63 311.90 5.25 321.35 0.00 2.36 (2.36) (6.67) 3.03 (9.70)
Great Northern
Nekoosa Corp. 10/5/88 40.88 304.72 40.13 311.90 39.00 321.35 (1.83) 2.36 (4.19) (2.80) 3.03 (5.83)
Anadarko
Petroleum Corp. 10/4/88 26.38 304.62 24.63 310.42 25.75 321.24 (6.64) 1.90 (8.54) 4.57 3.49 1.08
"Jacobson Stores, Inc."10/4/88 19.00 304.62 21.25 310.42 21.50 321.24 11.84 1.90 9.94 1.18 3.49 (2.31)
TGX Corp. 10/4/88 1.75 304.62 1.63 310.42 1.50 321.24 (7.14) 1.90 (9.05) (7.69) 3.49 (11.18)
Butler
Manufacturing Co. 10/3/88 33.25 303.35 33.50 311.14 35.50 321.26 0.75 2.57 (1.82) 5.97 3.25 2.72
Computer Entry
Systems Corp. 10/3/88 4.63 303.35 5.00 311.14 7.25 321.26 8.11 2.57 5.54 45.00 3.25 41.75
Inco Ltd. 10/3/88 29.00 303.35 29.00 311.14 28.63 321.26 0.00 2.57 (2.57) (1.29) 3.25 (4.55)
"Prime Computer, Inc." 10/3/88 12.88 303.35 14.88 311.14 13.50 321.26 15.53 2.57 12.97 (9.24) 3.25 (12.50)
Universal Foods Corp. 10/3/88 24.00 303.35 23.75 311.14 24.25 321.26 (1.04) 2.57 (3.61) 2.11 3.25 (1.15)
Fidata Corp. 9/29/88 6.88 296.35 7.88 312.68 8.00 319.18 14.55 5.51 9.04 1.59 2.08 (0.49)
Bethlehem Steel Corp. 9/28/88 21.25 300.05 20.25 308.46 21.88 324.22 (4.71) 2.80 (7.51) 8.02 5.11 2.92
"Centocor, Inc." 9/26/88 24.50 301.20 21.50 308.40 21.25 325.48 (12.24) 2.39 (14.64) (1.16) 5.54 (6.70)
Andrew Corp. 9/22/88 16.75 297.36 16.25 308.82 16.00 326.07 (2.99) 3.85 (6.84) (1.54) 5.59 (7.12)
Northrop Corp. 9/21/88 29.75 299.50 30.25 310.11 33.25 318.81 1.68 3.54 (1.86) 9.92 2.81 7.11
"TW Services, Inc." 9/19/88 17.63 294.49 23.75 308.45 26.75 317.75 34.75 4.74 30.01 12.63 3.02 9.62
State Street
Boston Corp. 9/15/88 24.88 299.90 24.88 307.94 26.63 316.32 0.00 2.68 (2.68) 7.04 2.72 4.31
The MacNeal-Schwendler
Corp. 9/14/88 10.75 299.47 10.50 309.39 11.88 314.92 (2.33) 3.31 (5.64) 13.10 1.79 11.31
Durham Corp. 9/13/88 32.88 299.31 32.00 306.95 35.25 319.62 (2.66) 2.55 (5.21) 10.16 4.13 6.03
"Wickes
Companies, Inc." 9/13/88 9.00 299.31 13.63 306.95 11.13 319.62 51.39 2.55 48.84 (18.35) 4.13 (22.48)
"Lowe's Companies,
Inc." 9/9/88 20.38 301.94 21.25 305.97 22.00 319.17 4.29 1.33 2.96 3.53 4.31 (0.78)
"System
Industries, Inc." 9/9/88 4.75 301.94 6.25 305.97 5.75 319.17 31.58 1.33 30.24 (8.00) 4.31 (12.31)
American Hoist
& Derrick Co. 9/8/88 10.63 302.26 10.75 304.67 11.88 312.66 1.18 0.80 0.38 10.47 2.62 7.84
"Betz
Laboratories, Inc." 9/8/88 48.75 302.26 45.75 304.67 46.75 312.66 (6.15) 0.80 (6.95) 2.19 2.62 (0.44)
Gulf+Western Inc. 9/7/88 41.75 301.19 41.88 304.72 40.00 311.90 0.30 1.17 (0.87) (4.48) 2.36 (6.83)
Stanhome Inc. 9/7/88 20.38 301.19 20.25 304.72 19.13 311.90 (0.61) 1.17 (1.79) (5.56) 2.36 (7.91)
"Nantucket
Industries, Inc." 9/6/88 6.50 306.86 8.50 304.62 8.88 310.42 30.77 (0.73) 31.50 4.41 1.90 2.51
"Engraph, Inc." 9/1/88 11.40 313.21 11.40 296.35 12.25 312.68 0.00 (5.38) 5.38 7.46 5.51 1.95
"Kraft, Inc." 9/1/88 55.75 313.21 54.78 296.35 58.88 312.68 (1.74) (5.38) 3.64 7.48 5.51 1.96
"Realist, Inc." 8/29/88 10.25 313.95 11.63 301.20 12.13 308.40 13.41 (4.06) 17.48 4.30 2.39 1.91
Nordson Corp. 8/26/88 45.75 313.98 40.88 298.01 42.88 309.40 (10.66) (5.09) (5.57) 4.89 3.82 1.07
Fibreboard Corp. 8/25/88 9.88 307.30 10.63 297.36 14.00 308.82 7.59 (3.23) 10.83 31.76 3.85 27.91
Square D Company 8/24/88 50.38 303.15 47.25 299.50 50.00 310.11 (6.20) (1.20) (5.00) 5.82 3.54 2.28
"Commerce
Bancshares, Inc." 8/23/88 38.50 306.45 39.75 294.59 40.75 309.47 3.25 (3.87) 7.12 2.52 5.05 (2.54)
The Lamson
& Sessions Co. 8/22/88 11.38 305.94 14.00 294.49 17.13 308.45 23.08 (3.74) 26.82 22.32 4.74 17.58
"ARX, Inc." 8/19/88 8.63 304.36 7.88 298.44 7.00 310.81 (8.70) (1.95) (6.75) (11.11) 4.14 (15.26)
Ameritrust Corp. 8/17/88 22.13 312.03 20.38 299.47 20.75 309.39 (7.91) (4.03) (3.88) 1.84 3.31 (1.47)
"Management
Science, Inc." 8/17/88 8.13 312.03 8.88 299.47 8.25 309.39 9.23 (4.03) 13.26 (7.04) 3.31 (10.35)
"Duramed
Pharmaceuticals, Inc."8/16/88 4.13 310.18 4.00 299.31 5.50 306.95 (3.03) (3.50) 0.47 37.50 2.55 34.95
Banponce Corp. 8/11/88 26.00 312.17 23.00 302.26 23.75 304.67 (11.54) (3.17) (8.36) 3.26 0.80 2.46
Gordon Jewelry Corp. 8/10/88 16.88 311.12 16.50 301.19 16.75 304.72 (2.22) (3.19) 0.97 1.52 1.17 0.34
"Jostens, Inc." 8/9/88 17.38 309.50 17.63 306.86 16.88 304.62 1.44 (0.85) 2.29 (4.26) (0.73) (3.53)
Publicker
Industries Inc. 8/9/88 1.88 309.50 2.00 306.86 2.13 304.62 6.67 (0.85) 7.52 6.25 (0.73) 6.98
AmVestors
Financial Corp. 8/4/88 6.40 314.25 6.88 313.21 7.63 296.35 7.42 (0.33) 7.75 10.91 (5.38) 16.29
"Marion
Laboratories, Inc." 8/4/88 20.00 314.25 19.88 313.21 17.75 296.35 (0.63) (0.33) (0.29) (10.69) (5.38)
(5.31)
"Wendy's
International, Inc." 8/4/88 5.88 314.25 6.00 313.21 6.75 296.35 2.13 (0.33) 2.46 12.50 (5.38) 17.88
Paradyne Corp. 8/3/88 5.38 314.38 5.75 314.58 5.00 300.05 6.98 0.06 6.91 (13.04) (4.62) (8.42)
Augat Inc. 8/2/88 14.00 318.52 13.88 313.61 11.25 301.32 (0.89) (1.54) 0.65 (18.92) (3.92) (15.00)
"Airgas, Inc." 8/1/88 NA 313.75 NA 313.95 NA 301.20 NA 0.06 NA NA (4.06) N/A
Cetus Corp. 8/1/88 12.75 313.75 11.38 313.95 10.00 301.20 (10.78) 0.06 (10.85) (12.09) (4.06) (8.03)
Phelps Dodge Corp. 7/29/88 41.38 313.75 40.38 313.98 40.50 298.01 (2.42) 0.07 (2.49) 0.31 (5.09) 5.40
Dean Foods 7/28/88 26.25 315.73 25.88 303.15 25.63 297.36 (1.43) (3.98) 2.56 (0.97) (1.91) 0.94
Energen Corporation 7/27/88 22.13 313.20 22.38 303.15 23.88 299.50 1.13 (3.21) 4.34 6.70 (1.20) 7.91
"First Virginia
Banks, Inc." 7/27/88 26.50 313.20 25.88 303.15 25.63 299.50 (2.36) (3.21) 0.85 (0.97) (1.20) 0.24
H.F. Ahmanson
& Company 7/26/88 16.38 314.57 15.13 306.45 14.63 294.59 (7.63) (2.58) (5.05) (3.31) (3.87) 0.56
Rorer Group Inc. 7/26/88 36.38 314.57 34.88 306.45 34.38 294.59 (4.12) (2.58) (1.54) (1.43) (3.87) 2.44
Stone
Container Corporation 7/25/88 34.50 310.44 34.63 305.94 31.50 294.49 0.36 (1.45) 1.81 (9.03) (3.74) (5.28)
"Warwick
Insurance Mgrs., Inc." 7/25/88 8.75 310.44 8.75 305.94 7.75 294.49 0.00 (1.45) 1.45 (11.43) (3.74) (7.69)
"Texfi
Industries, Inc." 7/22/88 6.50 316.18 6.75 304.36 5.63 298.44 3.85 (3.74) 7.58 (16.67) (1.95) (14.72)
"RJR Nabisco, Inc." 7/21/88 47.50 317.58 49.63 308.00 50.88 299.90 4.47 (3.02) 7.49 2.52 (2.63) 5.15
Chicago Dock
& Canal Trust 7/20/88 25.00 318.50 24.00 312.03 24.13 299.47 (4.00) (2.03) (1.97) 0.52 (4.03) 4.55
Crompton &
Knowles Corp. 7/20/88 34.00 318.50 33.50 312.03 29.00 299.47 (1.47) (2.03) 0.56 (13.43) (4.03) (9.41)
Acme Steel Company 7/19/88 19.25 313.87 24.00 310.18 24.50 299.31 24.68 (1.18) 25.85 2.08 (3.50) 5.59
Del Webb Corporation 7/19/88 13.75 313.87 14.75 310.18 13.00 299.31 7.27 (1.18) 8.45 (11.86) (3.50) (8.36)
Eli Lilly and Company 7/18/88 81.38 310.76 84.50 312.70 81.00 297.28 3.84 0.62 3.22 (4.14) (4.93) 0.79
Service
Corporation Intl. 7/18/88 19.13 310.76 20.00 312.70 19.38 297.28 4.58 0.62 3.95 (3.13) (4.93) 1.81
"Interleaf, Inc." 7/15/88 12.63 312.80 13.25 314.38 11.00 301.94 4.95 0.51 4.45 (16.98) (3.96) (13.02)
Quixote Corporation 7/15/88 7.50 312.80 7.50 314.38 8.19 301.94 0.00 0.51 (0.51) 9.17 (3.96) 13.13
Dynamics Research Corp.7/14/88 7.50 311.96 7.75 312.17 7.13 302.26 3.33 0.07 3.27 (8.06) (3.17) (4.89)
"H&R Block, Inc." 7/14/88 25.75 311.96 26.88 312.17 25.25 302.26 4.37 0.07 4.30 (6.05) (3.17) (2.87)
Hilton Hotels
Corporation 7/14/88 47.75 311.96 48.13 312.17 44.88 302.26 0.79 0.07 0.72 (6.75) (3.17) (3.58)
INTERCO Incorporated 7/11/88 43.50 313.92 45.25 312.81 72.50 310.93 4.02 (0.35) 4.38 60.22 (0.60) 60.82
Hadson Corporation 7/5/88 4.25 313.61 4.00 318.52 5.38 306.54 7.00 1.57 5.43 34.38 (3.76) 38.14
Avery International
Inc. 6/30/88 22.50 306.36 24.50 315.73 24.13 307.30 8.89 3.06 5.83 (1.53) (2.67) 1.14
"Floating Point
Systems, Inc." 6/30/88 2.63 306.36 3.00 315.73 3.00 307.30 14.29 3.06 11.23 0.00 (2.67) 2.67
"CML Group, Inc." 6/28/88 18.88 302.67 22.13 314.57 19.63 306.45 17.22 3.93 13.29 (11.30) (2.58) (8.72)
Elcor Corporation 6/28/88 6.50 302.67 7.00 314.57 7.25 306.45 7.69 3.93 3.76 3.57 (2.58) 6.15
Warner-Lambert
Company 6/28/88 65.25 302.67 66.75 314.57 66.50 306.45 2.30 3.93 (1.63) (0.37) (2.58) 2.21
Colorado Natn'l
Bankshares 6/27/88 12.25 292.55 15.63 310.44 14.63 305.94 27.55 6.12 21.44 (6.40) (1.45) (4.95)
Crane Co. 6/27/88 29.25 292.55 31.00 310.44 30.25 305.94 5.98 6.12 (0.13) (2.42) (1.45) (0.97)
Federal Signal
Corporation 6/24/88 20.75 292.55 22.13 316.18 21.25 304.36 6.63 8.08 (1.45) (3.95) (3.74) (0.22)
Bolt Beranek
and Newman Inc. 6/23/88 16.13 294.31 17.38 317.58 18.13 308.00 7.75 7.91 (0.15) 4.32 (3.02) 7.33
Buffton Corporation 6/23/88 6.75 294.31 7.63 317.58 8.25 308.00 12.96 7.91 5.06 8.20 (3.02) 11.21
Farmers Group 6/23/88 59.38 294.31 56.88 317.58 53.50 308.00 (4.21) 7.91 (12.12) (5.93) (3.02) (2.92)
"American Savings
Bank, FSB" 6/22/88 14.50 293.57 14.25 318.50 14.63 312.03 (1.72) 8.49 (10.22) 2.63 (2.03) 4.66
Owens & Minor 6/22/88 11.63 293.57 13.50 318.50 13.63 312.03 16.13 8.49 7.64 0.93 (2.03) 2.96
"Amfac, Inc." 6/21/88 48.50 293.46 47.00 313.87 45.75 310.18 (3.09) 6.95 (10.05) (2.66) (1.18) (1.48)
Data Switch
Corporation 6/21/88 6.75 293.46 8.13 313.87 8.00 310.18 20.37 6.95 13.42 (1.54) (1.18) (0.36)
Kimberly-Clark
Corporation 6/21/88 53.50 293.46 61.00 313.87 58.63 310.18 14.02 6.95 7.06 (3.89) (1.18) (2.72)
Merchants
National Corp. 6/21/88 23.00 293.46 24.88 313.87 25.13 310.18 8.15 6.95 1.20 1.01 (1.18) 2.18
Wavetek Corporation 6/21/88 6.75 293.46 7.13 313.87 6.88 310.18 5.56 6.95 (1.40) (3.51) (1.18) (2.33)
Micro Semi Corporation 6/17/88 6.00 293.42 6.50 312.80 6.13 314.38 8.33 6.60 1.73 (5.77) 0.51 (6.27)
Texas Instruments Inc. 6/17/88 43.25 293.42 47.63 312.80 44.88 314.38 10.12 6.60 3.51 (5.77) 0.51 (6.28)
"Twin Disc,
Incorporated" 6/17/88 26.63 293.42 27.00 312.80 29.38 314.38 1.41 6.60 (5.20) 8.80 0.51 8.29
"Baush & Lomb, Inc." 6/16/88 42.25 292.97 44.38 311.96 45.50 312.17 5.03 6.48 (1.45) 2.54 0.07 2.47
"Chelsea
Industries, Inc." 6/10/88 17.88 298.23 16.25 313.62 15.88 312.28 (9.09) 5.16 (14.25) (2.31) (0.43) (1.88)
Isomedix Inc. 6/10/88 5.63 298.23 6.25 313.62 9.13 312.28 11.11 5.16 5.95 46.00 (0.43) 46.43
NAC Re Corp. 6/9/88 22.00 294.71 24.25 312.47 26.25 314.25 10.23 6.03 4.20 8.25 0.57 7.68
Texas Air Corporation 6/9/88 10.50 294.71 12.00 312.47 14.88 314.25 14.29 6.03 8.26 23.96 0.57 23.39
CSX Corporation 6/8/88 26.75 294.32 28.13 313.91 28.38 314.38 5.14 6.66 (1.52) 0.89 0.15 0.74
"GenRad, Inc." 6/7/88 10.00 299.66 10.75 306.54 11.88 318.52 7.50 2.30 5.20 10.47 3.91 6.56
Dallas Corporation 6/6/88 12.13 298.58 12.75 308.57 12.13 318.52 5.15 3.35 1.81 (4.90) 3.22 (8.13)
"AMAX, Inc." 6/2/88 20.13 301.66 21.25 306.36 23.38 315.73 5.59 1.56 4.03 10.00 3.06 6.94
"Lone Star
Industries, Inc." 6/2/88 30.00 301.66 31.88 306.36 32.88 315.73 6.25 1.56 4.69 3.14 3.06 0.08
Browning-Ferris
Inds. Inc. 6/1/88 23.88 303.53 23.38 308.04 24.50 313.20 (2.09) 1.49 (3.58) 4.81 1.68 3.14
Digilog Inc. 6/1/88 4.63 303.53 4.75 308.04 6.00 313.20 2.70 1.49 1.22 26.32 1.68 24.64
Tech-Sym
Corporation 6/1/88 12.25 303.53 16.75 308.04 17.00 313.20 36.73 1.49 35.25 1.49 1.68 (0.18)
Vista Chemical Co. 5/31/88 51.50 306.70 48.38 302.67 57.00 314.57 (6.07) (1.31) (4.75) 17.83 3.93 13.90
Bio-Medicus Inc. 5/25/88 7.63 307.54 6.88 293.57 6.88 318.50 (9.84) (4.54) (5.29) 0.00 8.49 (8.49)
Ducommun Incorporated 5/25/88 3.75 307.54 3.38 293.57 3.50 318.50 (10.00) (4.54) (5.46) 3.70 8.49 (4.79)
SmithKline Beckman 5/25/88 54.75 307.54 49.75 293.57 46.25 318.50 (9.13) (4.54) (4.59) (7.04) 8.49 (15.53)
Tenneco Inc. 5/25/88 44.00 307.54 45.75 293.57 47.38 318.50 3.98 (4.54) 8.52 3.55 8.49 (4.94)
"BancTec, Inc." 5/24/88 8.50 307.51 8.00 293.46 7.75 313.87 (5.88) (4.57) (1.31) (3.13) 6.95 (10.08)
Mercantile Bancorp 5/23/88 21.50 305.83 25.38 290.74 27.88 310.76 18.02 (4.93) 22.96 9.85 6.89 2.97
Veeco Instruments Inc. 5/23/88 14.75 305.83 14.13 290.74 17.13 310.76 (4.24) (4.93) 0.70 21.24 6.89 14.35
VWR Corporation 5/20/88 20.88 302.92 20.00 293.42 20.25 312.80 (4.19) (3.14) (1.06) 1.25 6.60 (5.35)
Arkansas Best Corp. 5/19/88 14.13 298.66 23.88 292.97 24.75 311.96 69.03 (1.91) 70.93 3.66 6.48 (2.82)
"Lumex, Inc." 5/19/88 10.75 298.66 9.75 292.97 11.00 311.96 (9.30) (1.91) (7.40) 12.82 6.48 6.34
Norstan Inc. 5/18/88 6.75 298.33 6.75 291.76 7.63 317.36 0.00 (2.20) 2.20 12.96 8.77 4.19
K mart Corporation 5/17/88 33.88 300.50 31.75 296.72 34.63 317.11 (6.27) (1.26) (5.02) 9.06 6.87 2.18
Security Pacific Corp. 5/17/88 31.25 300.50 34.38 296.72 37.88 317.11 10.00 (1.26) 11.26 10.18 6.87 3.31
The One Bancorp 5/16/88 13.25 302.05 13.63 300.56 13.50 313.92 2.83 (0.49) 3.32 (0.92) 4.45 (5.36)
Payless Cashways Inc. 5/13/88 17.63 302.68 19.25 298.23 25.63 313.62 9.22 (1.47) 10.69 33.12 5.16 27.96
Jefferies Group Inc. 5/12/88 10.25 302.32 11.75 294.71 12.25 312.47 14.63 (2.52) 17.15 4.26 6.03 (1.77)
Plains Petroleum
Company 5/12/88 26.50 302.32 24.75 294.71 25.38 312.47 (6.60) (2.52) (4.09) 2.53 6.03 (3.50)
Whirpool Corp. 5/12/88 25.50 302.32 26.38 294.71 27.38 312.47 3.43 (2.52) 5.95 3.79 6.03 (2.23)
Baldor Electric Co. 5/10/88 26.88 316.16 25.88 299.66 25.75 306.54 (3.72) (5.22) 1.50 (0.48) 2.30 (2.78)
"Harley-Davidson, Inc."5/10/88 24.50 316.16 22.88 299.66 24.88 306.54 (6.63) (5.22) (1.41) 8.74 2.30 6.45
Sea Containers 5/9/88 24.63 314.71 22.00 300.01 22.75 308.57 (10.66) (4.67) (5.99) 3.41 2.85 0.56
Acuson Corp. 5/6/88 24.25 313.60 26.50 300.01 26.25 307.58 9.28 (4.33) 13.61 (0.94) 2.52 (3.47)
Collins
Foods International 5/6/88 15.50 313.60 13.88 300.01 14.25 307.58 (10.48) (4.33) (6.15) 2.70 2.52 0.18
Bassett Furniture
Industries 5/4/88 37.25 308.71 34.25 303.53 34.50 308.04 (8.05) (1.68) (6.38) 0.73 1.49 (0.76)
Gould Inc. 5/3/88 11.75 300.17 13.38 306.70 14.00 302.67 13.83 2.18 11.65 4.67 (1.31) 5.99
Maytag Corp. 5/3/88 24.75 300.17 23.50 306.70 21.50 302.67 (5.05) 2.18 (7.23) (8.51) (1.31) (7.20)
Circuit City Stores Inc.5/2/88 27.63 297.15 28.00 304.94 27.25 302.67 1.36 2.62 (1.26) (2.68) (0.74) (1.93)
Dataproducts 5/2/88 9.00 297.15 9.88 304.94 9.38 302.67 9.72 2.62 7.10 (5.06) (0.74) (4.32)
LIN Broadcasting Corp. 5/2/88 52.00 297.15 60.50 304.94 60.13 302.67 16.35 2.62 13.72 (0.62) (0.74) 0.12
Poughkeepsie
Savings Bank 5/2/88 21.63 297.15 21.13 304.94 19.25 302.67 (2.31) 2.62 (4.93) (8.88) (0.74) (8.13)
Oakite Products Inc. 4/29/88 29.88 300.39 37.88 304.48 37.13 292.55 26.78 1.36 25.42 (1.98) (3.92) 1.94
Energas Co. 4/28/88 15.63 300.39 15.75 306.09 15.00 294.31 0.80 1.90 (1.10) (4.76) (3.85) (0.91)
Sara Lee Corp. 4/28/88 40.25 300.39 39.75 306.09 36.38 294.31 (1.24) 1.90 (3.14) (8.49) (3.85) (4.64)
Zayre Corp. 4/26/88 22.00 301.70 23.38 307.51 20.50 293.46 6.25 1.93 4.32 (12.30) (4.57) (7.73)
Zenith Electronics Corp.4/26/88 18.50 301.70 20.13 307.51 22.38 293.46 8.78 1.93 6.86 11.18 (4.57) 15.75
Ransburg Corp. 4/25/88 11.88 299.08 11.50 305.83 10.25 290.74 (3.16) 2.26 (5.41) (10.87) (4.93) (5.94)
Damon Corp. 4/22/88 19.00 299.53 25.75 302.92 22.13 293.42 35.53 1.13 34.39 (14.08) (3.14) (10.94)
Genentech Inc. 4/21/88 41.63 305.31 32.50 298.66 28.63 292.97 (21.92) (2.18) (19.74) (11.92) (1.91) (10.02)
"Intermedics, Inc." 4/21/88 22.25 305.31 28.88 298.66 27.75 292.97 29.78 (2.18) 31.95 (3.90) (1.91) (1.99)
Michigan National Corp. 4/19/88 46.00 312.02 46.00 300.50 43.25 296.72 0.00 (3.69) 3.69 (5.98) (1.26) (4.72)
Wilson Foods Corp. 4/19/88 12.63 312.02 13.00 300.50 11.88 296.72 2.97 (3.69) 6.66 (8.65) (1.26) (7.40)
Pansophic Systems Inc. 4/18/88 17.88 312.04 17.63 302.05 14.50 300.56 (1.40) (3.20) 1.80 (17.73) (0.49) (17.24)
Knight-Ridder Inc. 4/15/88 44.25 314.64 40.75 302.68 41.88 298.23 (7.91) (3.80) (4.11) 2.76 (1.47) 4.23
Millipore Corp. 4/15/88 39.88 314.64 38.00 302.68 37.88 298.23 (4.70) (3.80) (0.90) (0.33) (1.47) 1.14
Pope & Talbot Inc. 4/14/88 20.75 314.78 21.25 302.32 19.50 294.71 2.41 (3.96) 6.37 (8.24) (2.52) (5.72)
American
Building Maintenance 4/12/88 21.75 308.55 23.25 316.16 24.25 299.66 6.90 2.47 4.43 4.30 (5.22) 9.52
BankAmerica Corp. 4/11/88 9.63 309.21 11.00 314.71 9.75 298.58 14.29 1.78 12.51 (11.36) (5.13) (6.24)
"H.M.S.S., Inc." 4/8/88 17.00 307.39 16.50 313.60 18.00 300.01 (2.94) 2.02 (4.96) 9.09 (4.33) 13.42
Orion Research Inc. 4/7/88 6.75 306.25 7.25 309.73 7.13 301.66 7.41 1.14 6.27 (1.72) (2.61) 0.88
Pennzoil Co. 4/7/88 74.50 306.25 76.25 309.73 74.00 301.66 2.35 1.14 1.21 (2.95) (2.61) (0.35)
Foxboro Co. 4/5/88 27.63 312.42 30.13 300.17 29.50 306.70 9.05 (3.92) 12.97 (2.07) 2.18 (4.25)
Data I/O Corp. 4/4/88 6.50 309.52 6.13 297.15 5.75 304.94 (5.77) (4.00) (1.77) (6.12) 2.62 (8.74)
F.W. Woolworth Co. 4/4/88 45.13 309.52 54.13 297.15 57.25 304.94 19.94 (4.00) 23.94 5.77 2.62 3.15
U.S. Shoe Corp. 4/4/88 17.88 309.52 20.38 297.15 18.75 304.94 13.99 (4.00) 17.98 (7.98) 2.62 (10.60)
William Carter 4/1/88 43.00 308.98 45.00 297.15 55.00 304.48 4.65 (3.83) 8.48 22.22 2.47 19.76
Avon Products Inc. 3/30/88 24.00 309.60 24.25 299.37 23.25 306.09 1.04 (3.30) 4.35 (4.12) 2.24 (6.37)
J.P. Stevens & Co. 3/28/88 48.25 309.43 63.50 299.08 67.75 307.51 31.61 (3.34) 34.95 6.69 2.82 3.87
"Kaneb Services, Inc." 3/28/88 2.00 309.43 2.38 299.08 2.25 307.51 18.75 (3.34) 22.09 (5.26) 2.82 (8.08)
Baker Hughes Inc. 3/23/88 16.75 305.06 17.63 312.03 17.13 298.66 5.22 2.28 2.94 (2.84) (4.28) 1.45
"Air Wis Services, Inc."3/22/88 10.88 305.77 13.38 312.02 14.00 298.33 22.99 2.04 20.94 4.67 (4.39) 9.06
Facet Enterprises 3/21/88 18.88 306.34 28.63 312.04 31.50 300.50 51.66 1.86 49.79 10.04 (3.70) 13.74
Air Products
and Chemicals 3/17/88 45.00 296.98 47.88 314.78 46.38 302.68 6.39 5.99 0.40 (3.13) (3.84) 0.71
Bank South Corporation 3/17/88 12.75 296.98 13.25 314.78 12.63 302.68 3.92 5.99 (2.07) 4.72) (3.84) (0.87)
Horn & Hardart Company 3/17/88 9.25 296.98 9.13 314.78 7.75 302.68 (1.35) 5.99 (7.35) (15.07) (3.84) (11.22)
"ONEOK, Inc." 3/17/88 19.00 296.98 10.13 314.78 11.00 302.68 (46.71) 5.99 (52.70) 8.64 (3.84) 12.49
CalFed Inc. 3/16/88 24.75 298.59 26.00 311.39 25.50 302.32 5.05 4.29 0.76 (1.92) (2.91) 0.99
Pic 'N'
Save Corporation 3/16/88 17.00 298.59 15.63 311.39 15.50 302.32 (8.09) 4.29 (12.38) (0.80) (2.91) 2.11
Centerre Bancorp. 3/15/88 35.00 299.09 34.25 308.55 37.50 316.49 (2.14) 3.16 (5.31) 9.49 2.57 6.92
Chesapeake Corp. 3/15/88 18.75 299.09 20.00 308.55 20.38 316.49 6.67 3.16 3.50 1.88 2.57 (0.70)
Irving Bank Corporation 3/15/88 48.38 299.09 53.38 308.55 65.00 316.49 10.34 3.16 7.17 21.78 2.57 19.21
UNUM Corp. 3/11/88 20.75 296.07 21.75 307.39 21.50 314.71 4.82 3.82 1.00 (1.15) 2.38 (3.53)
"Varo, Inc." 3/11/88 10.75 296.07 19.38 307.39 19.63 314.71 80.23 3.82 76.41 1.29 2.38 (1.09)
Browne &
Sharpe Manufacturing 3/9/88 16.25 287.96 21.25 312.46 23.88 309.73 30.77 8.51 22.26 12.35 (0.87) 13.23
Novo Corp. 3/9/88 1.44 287.96 1.25 312.46 1.38 309.73 (13.07) 8.51 (21.58) 10.00 (0.87) 10.87
Shoney's Inc. 3/7/88 22.50 286.47 23.63 309.52 24.50 300.17 5.00 8.05 (3.05) 3.70 (3.02) 6.72
Patrick Petroleum Co. 3/4/88 4.00 288.23 4.13 308.98 4.38 297.15 3.13 7.20 (4.07) 6.06 (3.83) 9.89
GAINSCO Inc. 3/3/88 3.50 288.06 5.13 309.34 4.63 300.39 46.43 7.39 39.04 (9.76) (2.89) (6.86)
GardenAmerica Corp. 3/3/88 11.88 288.06 15.00 309.34 13.75 300.39 26.32 7.39 18.93 (8.33) (2.89) (5.44)
Pennwalt Corp. 3/1/88 45.63 291.10 53.00 308.81 53.50 301.70 16.16 6.08 10.08 0.94 (2.30) 3.25
R.G. Barry Corp. 2/29/88 6.63 293.70 5.38 309.43 5.50 299.08 (18.87) 5.36 (24.22) 2.33 (3.34) 5.67
Arrow Electronics Inc. 2/26/88 7.25 289.75 7.13 302.63 7.50 299.53 (1.72) 4.45 (6.17) 5.26 (1.02) 6.29
USLICO Corp. 2/26/88 24.25 289.75 23.25 302.63 20.13 299.53 (4.12) 4.45 (8.57) (13.44) (1.02) (12.42)
Minnetonka Corp. 2/25/88 12.50 285.36 12.38 301.61 13.88 305.31 (1.00) 5.69 (6.69) 12.12 1.23 10.89
Valley National Corp. 2/25/88 26.25 285.36 29.13 301.61 29.50 305.31 10.95 5.69 5.26 1.29 1.23 0.06
Amcast Industrial 2/24/88 9.25 285.92 10.25 305.06 10.75 312.03 10.81 6.69 4.12 4.88 2.28 2.59
American
Bankers Insurance 2/24/88 8.88 285.92 8.88 305.06 9.50 312.03 0.00 6.69 (6.69) 7.04 2.28 4.76
Pace Membership
Warehouse 2/23/88 5.38 285.92 5.75 306.34 7.63 312.02 6.98 7.14 (0.17) 32.61 1.85 30.75
Philadelphia Suburban 2/19/88 13.63 279.02 16.63 301.48 15.63 314.64 22.02 8.05 13.97 (6.02) 4.37 (10.38)
Westmark International 2/19/88 15.75 279.02 17.50 301.48 19.00 314.64 11.11 8.05 3.06 8.57 4.37 4.21
Forest Laboratories 2/18/88 19.00 278.41 17.00 296.98 19.63 314.78 (10.53) 6.67 (17.20) 15.44 5.99 9.45
Grumman Corp. 2/18/88 19.00 278.41 18.63 296.98 23.13 314.78 (1.97) 6.67 (8.64) 24.16 5.99 18.17
Postal Instant Press 2/18/88 14.00 278.41 16.13 296.98 16.25 314.78 15.18 6.67 8.51 0.78 5.99 (5.22)
Wyse Technology 2/18/88 19.88 278.41 17.75 296.98 21.75 314.78 (10.69) 6.67 (17.36) 22.54 5.99 16.54
Heilig-Myers Co. 2/17/88 15.25 286.80 16.13 298.59 18.38 311.39 5.74 4.11 1.63 13.95 4.29 9.67
Infotron Systems Corp. 2/17/88 6.50 286.80 7.25 298.59 8.81 311.39 11.54 4.11 7.43 21.56 4.29 17.27
Union Corp. 2/17/88 5.38 286.80 7.25 298.59 7.38 311.39 34.88 4.11 30.77 1.72 4.29 (2.56)
Vermont American 2/17/88 16.02 286.80 17.05 298.59 18.18 311.39 6.38 4.11 2.27 6.67 4.29 2.38
Bankers Trust NY Corp. 2/16/88 31.50 290.26 35.25 299.09 33.88 308.55 11.90 3.04 8.86 (3.90) 3.16 (7.06)
Firestone Tire & Rubber2/16/88 31.88 290.26 45.00 299.09 63.13 308.55 41.18 3.04 38.13 40.28 3.16 37.11
Southern Union Co. 2/12/88 9.38 290.58 9.13 296.07 9.38 309.21 (2.67) 1.89 (4.56) 2.74 4.44 (1.70)
Grow Group 2/11/88 7.00 283.29 7.75 293.85 7.88 307.39 10.71 3.73 6.99 1.61 4.61 (2.99)
Alco Standard 2/10/88 21.63 283.15 20.88 294.11 25.00 306.25 (3.47) 3.87 (7.34) 19.76 4.13 15.63
Countrywide
Credit Industries 2/10/88 5.64 283.15 9.07 294.11 8.58 306.25 60.88 3.87 57.01 (5.41) 4.13 (9.54)
Electronic Associates 2/10/88 3.50 283.15 3.75 294.11 4.00 306.25 7.14 3.87 3.27 6.67 4.13 2.54
Joslyn Corp. 2/10/88 25.25 283.15 26.75 294.11 29.00 306.25 5.94 3.87 2.07 8.41 4.13 4.28
American Standard 2/9/88 36.75 283.23 67.00 287.96 73.75 312.46 82.31 1.67 80.64 10.07 8.51 1.57
Leisure Technology 2/9/88 3.88 283.23 3.88 287.96 4.75 312.46 0.00 1.67 (1.67) 22.58 8.51 14.07
Chrysler Corp. 2/4/88 26.75 302.74 26.00 288.23 24.75 308.98 (2.80) (4.79) 1.99 (4.81) 7.20 (12.01)
Hannaford Bros. 2/4/88 37.25 302.74 36.13 288.23 38.13 308.98 (3.02) (4.79) 1.77 5.54 7.20 (1.66)
Analog Devices 1/28/88 11.63 287.06 11.38 289.75 12.50 302.63 (2.15) 0.94 (3.09) 9.89 4.45 5.44
Maxtor Corp. 1/27/88 9.13 283.15 11.88 285.36 13.00 301.61 30.14 0.78 29.36 9.47 5.69 3.78
Brush Wellman 1/26/88 25.38 284.37 24.13 285.92 27.13 305.06 (4.93) 0.55 (5.47) 12.44 6.69 5.74
Comerica Inc. 1/26/88 38.33 284.37 43.83 285.92 44.67 305.06 14.36 0.55 13.81 1.90 6.69 (4.79)
Edison Brothers 1/26/88 24.88 284.37 25.63 285.92 27.50 305.06 3.02 0.55 2.47 7.32 6.69 0.62
Richton International 1/26/88 3.50 284.37 3.50 285.92 3.50 305.06 0.00 0.55 (0.55) 0.00 6.69 (6.69)
U.S. Trust 1/26/88 37.25 284.37 41.50 285.92 41.25 305.06 11.41 0.55 10.86 (0.60) 6.69 (7.30)
Cronus Industries 1/22/88 10.38 293.18 13.63 282.44 12.75 306.34 31.33 (3.66) 34.99 (6.42) 8.46 (14.88)
Elco Industries 1/19/88 22.00 287.56 24.75 286.80 25.25 298.59 12.50 (0.26) 12.76 2.02 4.11 (2.09)
Molecular Genetics 1/19/88 3.50 287.56 4.00 286.80 4.06 298.59 14.29 (0.26) 14.55 1.57 4.11 (2.54)
Lincoln
Telecommunications 1/15/88 26.75 286.52 26.25 290.58 28.50 296.07 (1.87) 1.42 (3.29) 8.57 1.89 6.68
New England
Critical Care 1/15/88 19.25 286.52 17.50 290.58 20.75 296.07 (9.09) 1.42 (10.51) 18.57 1.89 16.68
Northwestern
National Life 1/14/88 21.88 280.20 26.88 283.29 27.50 293.85 22.86 1.10 21.75 2.33 3.73 (1.40)
TransNet Corp. 1/14/88 2.06 280.20 2.06 283.29 2.00 293.85 0.00 1.10 (1.10) (3.05) 3.73 (6.78)
V.F. Corp. 1/13/88 23.50 279.45 28.88 283.15 29.00 294.11 22.87 1.32 21.55 0.43 3.87 (3.44)
Primark Corp. 1/12/88 17.50 271.27 18.75 283.15 21.63 287.96 7.14 4.38 2.76 15.33 1.70 13.63
Van Dorn Co. 1/8/88 30.63 275.16 34.25 280.91 34.13 286.47 11.84 2.09 9.75 (0.36) 1.98 (2.34)
Allen Group Inc. 1/7/88 6.25 269.87 9.00 302.74 8.75 288.23 44.00 12.18 31.82 (2.78) (4.79) 2.02
Cooper LaserSonics 1/7/88 0.63 269.87 0.88 302.74 1.47 288.23 40.00 12.18 27.82 67.89 (4.79) 72.68
Standard Microsystems 1/6/88 5.38 261.96 7.13 300.30 7.63 288.06 32.56 14.64 17.92 7.02 (4.08) 11.09
</TABLE>
<PAGE>
PART XI
SUMMARY OF SELECTED SHAREHOLDERS' RIGHTS PLANS
<PAGE>
SUMMARY DESCRIPTION OF SELECTED FLIP-OVER/FLIP-IN PLANS
<PAGE>
<TABLE>
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
A.G. Edwards 12/30/88 DE 1 share of
Common Stock 14.96 75 5.01 10
AGCO Corp. 01/26/94 DE 1/100th of Preferred 5.00 200 5.13 10
AIFS Inc. 12/15/88 DE 1/100th share of Series
A Cumulative Participating
Preferred Stock 5.00 22 4.40 10
AMAX, Inc. 06/02/88 NY 1/2 share of Common
Stock 21.25 35 1.65 10
AMR 08/11/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 77.50 200 2.58 10
ARX, Inc. 09/19/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 8.00 25 3.13 10
AVX 09/28/89 DE 1/100th share of Series
A Participating Cumulative
Preferred Stock 21.63 100 4.62 10
Abigail Adams
National Bank 04/12/94 DE 1 Share of Common
Stock 12.25 60.33 4.92 10
Acme Electric
Corp. 11/15/93 NY 1 share of Common
Stock 8.75 50.00 5.71 10
Acme Steel
Company 07/19/88 DE 1/100th share of Series
B Junior Participating
Preferred Stock 24.00 70 2.92 10
Acuson
Corporation 05/06/88 DE 1 share of Common Stock 26.50 120 4.53 10
Adaptec Inc. 04/26/89 CA 1 share of Common Stock 7.50 35 4.67 10
Adobe
Systems Inc. 7/11/90 CA 1 share of Common Stock 33.00 230 6.97 10
Advanced Micro
Devices Inc. 02/07/90 DE 1/1000th share of Series
A Junior Participating
Preferred Stock 7.00 65 9.29 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
A.G. Edwards Following 20% acquisition
without consent of Company,
or 10 days following 20%
tender offer; rights
will not be issued if
Acquiror reduces ownership
below 20% in five days. $0.01 prior to Stock
Acquisition Date; may
be reinstated if
Acquiror reduces
beneficial ownership
to less than 10%. Standard Standard; triggered by 20% beneficial ownership.
AGCO Corp. 10 days following 20%
acquisition $0.01 prior to 10%
acquisition Standard Standard; also triggered by 20% beneficial ownership
AIFS Inc. 10 days following 20%
acquisition or 10 business
days following tender offer
for 20%. $0.001 prior to 20%
acquisition in or in
case of fair offer. Standard Standard; also triggered by 20% beneficial ownership.
AMAX, Inc. 10 days following 20%
acquisition or tender offer
for 30%. $0.05 prior to the 10th
day following the Stock
Acquisition Date. Standard None
AMR 10 days following 20%
acquisition or tender offer
of 30%. $0.05 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 10%.
ARX, Inc. 10 days following 20%
acquisition or 10 days
following tender offer
for 20%. $0.01 prior to 5 p.m.
NY City time on the
tenth day following
the Shares Acquisi-
tion Date. Standard Standard; also triggered by 25% beneficial ownership or 1%
event. Acquiror's Rights become void.
AVX 10 days following 10%
acquisition or tender
offer for 30%. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Abigail Adams
National Bank 10 days following 25%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 25% beneficial ownership
Acme Electric
Corp. 10 business days
following 20%
acquisition $0.01 prior to 10%
acquisition Standard Standard; triggered by 20% beneficial ownership
Acme Steel
Company 10 days following
20% acquisition or
tender offer for 30%. $0.02 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Acuson
Corporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 10
days following date
there is an Acquiring
Person. Standard Standard; Acquiror's Rights become void.
Adaptec Inc. 10 days following 20%
acquisition offer or
tender offer of 30%. $0.01 prior to tenth
day following acquisition
or prior to Final
Expiration Date. Standard Standard; also triggered by 30% beneficial ownership.
Adobe
Systems Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Advanced Micro
Devices Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to tenth
day following Stock
Acquisition Date. Standard Standard; also triggered by declaration of an "Adverse Person"
with 10% ownership.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Advo Inc. 01/27/93 DE 1/100th Share of
Preferred Stock 17.84 75 4.2 10
Aetna Life &
Casualty Co. 10/27/89 Ct 1/100th share of
Class B voting
Preferred Stock 60.50 200 3.31 10
Affiliated Banc
Corporation 11/28/88 Ma 1/100th share of Series
A Junior Participating
Cumulative Preferred
Stock 8.75 35 4.00 10
Air Products
and Chemicals,
Inc. 03/17/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 46.50 200 4.30 10
Air Wis
Services, Inc. 03/22/88 Wi 1/100th share of Series
A Preferred Stock 12.88 45 3.49 10
Airgas, Inc. 08/01/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock, or a
combination of securities
and assets of equivalent
value NA 65 NA 10
Alcan Aluminum 12/14/89 CAN 1 share of Common
Stock 22.75 100 4.40 10
Alco Standard
Corporation 02/10/88 OH 1/100th share of Series
12 Preferred Stock 20.50 75 3.66 10
Allen Group,
Inc., The 01/07/88 DE 1/100th share of Series
B Junior Participating
Preferred Stock 8.63 35 4.06 10
Allergan, Inc. 05/18/89 DE 1/100th share of Series
A Participating
Preferred Stock NA 115 NA 10
Allied
Products Corp. 11/21/90 DE 1 share of Common Stock 4.25 50 11.76 20
Allied
Research Corp. 06/08/91 DE 1/100th share of
Preferred Stock 12.375 45 3.64 10
Alpha 1
Biomedicals 04/29/94 DE 1/1,000th of Preferred
Stock 2.00 16.00 8.00 10
Ambase Corp. 02/19/91 DE NA 0.69 NA NA NA
Amcast Industrial
Corporation 02/24/88 OH 1/100th share of Series
A Preferred Stock 10.50 40 3.81 10
Ameribanc
Investors,
Inc. 04/21/89 MD 1/100th Share of Series
A Junior Participating
Preferred Stock 21.50 75 3.49 10
America
Online Inc. 04/23/93 DE 1/100th Share of
Preferred Stock 24.25 150 6.2 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Advo Inc. 10 days following
20% acquisition. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%.
Acquiror's Rights become void.
Aetna Life &
Casualty Co. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to close
of business on the later
of Distribution Date or
first date of Acquiring
Person public
announcement. Standard Standard; also triggered by 20% beneficial ownership or
declaration of an "Adverse Person" with 10% ownership.
Affiliated Banc
Corporation 10 days following 20%
acquisition or tender
offer for 25%. $0.01 prior to 10 days
following Stock Acquisition
Date. Standard Standard; also triggered by 25% beneficial ownership;
Acquiror's Rights become void.
Air Products
and Chemicals,
Inc. 10 days following 20%
acquisition or 10
business days
following tender
offer for 20%. $0.01 prior to 10 days
following the Stock Acquisi-
tion Date; may be reinstated
if Acquiror reduces beneficial
ownership to 10% or
less. Standard Standard; also triggered by 25% beneficial ownership.
Air Wis
Services, Inc. 20 business days
following 20%
acquisition or tender
offer for 30%. $0.05 prior to 20 business
days following the Share
Acquisition Date; may be
reinstated if Acquiror reduces
beneficial ownership to 10%
or less. Standard Standard; also triggered by 35% beneficial ownership.
Airgas, Inc. 10 days following 20%
acquisition (30% for
Peter McCausland) or the
close of business 65 days
following tender offer
for 30%. $0.02 prior to 10 days
following the Stock
Acquisition Date. Standard;
Acquiror's
Rights become
void. Standard; also triggered by 35% beneficial ownership or 1%
event. Acquiror's Rights become void.
Alcan Aluminum 10 days following 20%
acquisition or
tender offer. $0.01 prior to Flip-in
event. Contains share-holder
referendum provision. Standard Standard; also triggered by 20% beneficial ownership.
Alco Standard
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to 10 days
following Stock Acquisi-
tion Date or 20 Days
following the Stock
Acquisition Date if it
occurred before
2/22/88. Standard Standard; also triggered by 30% beneficial ownership,
reduction in dividends, or 2% increase in ownership of any
class of securities.
Allen Group,
Inc., The 10 days following 20%
acquisition or 10
business days
following tender
offer for 20%. $0.01 prior to 10 days
following the Stock Acquisi-
tion Date; may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by more than 20% beneficial
ownership.
Allergan,
Inc. Following 20%
acquisition or 10
days following tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. May
also be redeemed in
merger unrelated to
Acquiror or following
expiration of Subscrip-
tion Right if Acquiror
owns less than 20%. Standard Standard; also triggered by 20% beneficial ownership except in
case of Permitted Offer.
Allied Products
Corp. 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
Allied
Research Corp. 10 days following
25% acquisition or
tender offer
for 30% $0.01 prior to the
Stock Acquisition
Date. Standard Standard
Alpha 1
Biomedicals 10 days following
25% acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 25% beneficial ownership
Ambase Corp. NA NA NA NA
Amcast Industrial
Corporation 10 days following
20% acquisition
or tender offer
for 30%. $0.01 prior to 10
days following the
Share Acquisition
Date; may be reinstated
if Acquiror reduces
beneficial ownership
to less than 10%. Standard Standard; also triggered by 30% beneficial ownership.
Ameribanc
Investors,
Inc. 10 days following
20% acquisition
or tender offer
for 20%. $0.01 prior to
acquisition. Standard Standard
America
Online Inc. 10 days following
25% acquisition. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
American
Bankers
Insurance
Group, Inc. 02/24/88 FL 1/100th share of Series
A Participating
Preferred Stock 9.13 31 3.40 10
American
Building
Maintenance
Industries 04/12/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 23.25 80 3.44 10
American
Business
Products 10/26/89 GA 1 share of Common
Stock 21.00 20% of
Market
Price 5.00 10
American
Ecology Corp. 12/08/93 DE 1/1000th share of
Preferred Stock 5.63 55.00 9.77 10
American
Exploration
Co. 10/01/93 DE 1/10000th share of
Preferred Stock 1.44 7.50 5.21 10
American
Funeral
Services Corp. 08/12/92 DE 1/100th share of
Preferred Stock 12.25 50.00 4.08 10
American
General Corp. 07/27/89 TX 1/100th share of Series
A Junior Participating
Preferred Stock 36.75 120 3.26 10
American
Health
Properties
Inc. 04/10/90 DE 1/100th share of Series
A Preferred Stock 20.25 45 2.22 10
American
Hoist &
Derrick
Company 09/08/88 DE 1/100th share of Series
E Participating
Preferred Stock 10.63 35 3.29 10
American
President
Companies,
Ltd. 11/29/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 31.63 130 4.11 10
American
President
Companies Ltd. 10/22/91 DE 1/100th share of
Preferred Stock 41.88 130.00 3.10 10
American
Realty
Trust, Inc. 04/11/90 GA 1/100th share of Series
A Cumulative Participating
Preferred stock. 4.25 25 5.88 10
American
Savings
Bank, FSB 06/22/88 NA 1/100th share of Series
A Junior Participating
Preferred Stock 14.25 56 3.93 10
American
Standard, Inc. 02/09/88 DE 5 shares of Common or
equivalent Preferred
Stock. 66.88 32.50 0.49 06/30/88
American
Travellers
Corp. 04/25/90 PA 1/100th share of Series
A Preferred Stock 12.13 50 4.12 10
American
Water Works
Company, Inc. 03/02/89 DE One-half share of
Common Stock 19.63 40 2.04 10
Ameritech 12/21/88 DE 1/100th share of Junior
Participating
Preferred Stock 48.38 125 2.58 10
Ameritrust
Corporation 08/17/88 DE 1/100th share Cumulative
Redeemable Series A
Preferred Stock 20.25 75 3.70 10
Ameron Inc. 03/01/91 DE 1/100th share of
Preferred Stock 45.63 55 1.21 10
Ametek, Inc 07/26/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 13.75 60 4.36 10
Amfac, Inc. 06/21/88 HI 1/100th share of Series
C Junior Participating
Preferred Stock 47.00 100 2.13 10
Amgen Inc. 01/24/89 DE 1 share of Common
Stock 36.75 180 4.90 10
Amoskeag
Bank Shares 10/23/89 NH 1/100th Share Junior
Participating
Preferred Stock 5.25 32 6.10 10
Ampco-Pittsburgh
Corporation 11/01/88 PA 1/100th share of Series
A Preferred Stock 13.00 36 2.77 10
Amre Inc. 11/13/92 DE 1/100th Share of
Preferred Stock 4.75 25 5.3 10
AmSouth
Bancorpora-
tion 06/15/89 DE 1/100th share Series
A Preferred Stock 28.75 115 4.00 10
AmVestors
Financial
Corporation 08/04/88 KS 1/100th share of Series
A Junior Participating
Preferred Stock 6.40 28.80 4.5 5
Amwest
Insurance
Group, Inc. 05/11/89 DE 1 share of Common
Stock 10.50 50 4.76 10
AnaComp Inc. 02/04/90 IN 1/10th share of Common
Stock 3.88 32 8.25 10
Anadarko
Petroleum
Corporation 10/04/88 DE 1/200th share of Series
A Junior Participating
Preferred Stock 24.63 80 3.25 10
Analog
Devices, Inc. 01/28/88 MA 1 share of Common
Stock 11.63 60 5.16 10
Analysts
International
Corporation 06/16/89 MN 1 share Common
Stock 15.6 100 6.41 10
Anchor Glass 08/21/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 20.00 55 2.75 10
Andover
Bancorp, Inc. 02/16/89 DE 1/100th share of Series
A Junior Participating
Cumulative Preferred
Stock 15.63 90 5.76 10
Andrew
Corporation 09/22/88 IL 1 share of Common
Stock 16.25 50 3.08 10
Angico-
Eagle Mines 06/03/89 ON 1 share of Common
Stock NA $80
(Cdn.) NA 10
Anthony
Industries 08/10/89 DE 1/100th share of Series
A Preferred Stock 17.13 66 3.85 10
Apogee
Enterprises
Inc. 10/19/90 MN 1/100th share of
Preferred Stock 16.00 70 4.38 10
Apple
Bancorp Inc. 11/17/89 DE 1/100th Share Junior
Participating
Preferred Stock 36.38 135 3.71 10
Apple
Computer, Inc. 04/19/89 CA 1 share of Common
Stock 40.125 200 4.98 10
Applied
Materials,
Inc. 06/14/89 DE 1/4 share Common
Stock 28.50 45 1.58 10
Archive Corp. 03/17/89 DE 1/100th share of
Junior Participating
Preferred Stock 10.13 55 5.43 10
Arctco Inc. 09/05/91 MN 1/100th share of
Preferred Stock 9.25 38 4.11 10
Arctco Inc. 09/05/91 MN 1/100th share of
Preferred Stock 8.38 38.00 4.54 10
Arctic
Alaska
Fisheries
Corp. 11/19/91 WA 1 share of Common
Stock 9.25 38.00 4.11 10
Arix Corp. 02/27/90 DE 1 share of Common
Stock 2.13 14 6.57 10
Arkansas
Best
Corporation 05/19/88 DE 1/1000th of Series
A Junior Participating
Preferred Stock 23.875 60 2.51 5
Arrow
Electronics,
Inc. 02/26/88 NY 1/100th share of
Participating
Preferred Stock 7.00 50 7.14 10
Asarco
Incorporated 07/26/89 NJ 1/100th share of
Junior Participating
Preferred Stock 29.25 90 3.08 10
Ashton-Tate
Corporation 02/13/89 DE 1 share of Common
Stock 22.75 105 4.62 10
Ask Computer
Systems Inc. 08/14/90 DE 1 share of Common
Stock 9.25 45 4.86 10
Associated
Communica-
tions 01/03/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 24 90 3.75 10
Athlone
Industries,
Inc. 12/26/88 DE 1 share of Common
Stock 16.19 90 5.56 10
Augat Inc. 08/22/88 MA 1/5th share of Common
Stock and one note in
principal amount equal
to 4/5th of the current
market price of the
Common Stock 13.63 60 4.40 10
Automated
Systems,
Inc. 10/28/88 WI 1 share of Common
Stock 4.81 40 8.32 10
Avery
International
Corpora-
tion 06/30/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 24.50 95 3.88 10
Avon
Products,
Inc. 03/30/88 NY 1/100th share of Series
A Junior Participating
Preferred Stock 24.75 100 4.04 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
American
Bankers
Insurance
Group, Inc. 10 days following 20%
acquisition or 10
business days
following a 30%
tender offer. $0.01 prior to 20 days
following 20% acquisition;
may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 20% beneficial ownership.
American
Building
Maintenance
Industries 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; Acquiror's rights become void.
American
Business
Products 20 days following 20%
acquisition or 20
business days following
20% tender offer or 20
business days following
Adverse Person
declaration. $0.01 prior to 20 days
following Stock
Acquisition. Redemption
may be reinstated if
ownership is reduced
below 10%. Standard Standard; also triggered by 20% beneficial ownership or
Adverse Person.
American
Ecology
Corp. 10 business days
following 15%
acquisition $0.01 prior to 10%
acquisition. Standard Standard; triggered by 15% beneficial ownership
American
Exploration
Co. 10 days following
15% acquisition
or tender offer
of 30% $0.01 prior to
acquisition. Standard Standard; triggered by 15% beneficial ownership
American
Funeral
Services
Corp. 10 days following
35% acquisition or
tender offer
for 35% $0.01 prior to 35%
acquisition in or
in case of fair
offer. Standard Standard
American
General
Corp. 10 days following
15% acquisition or
tender ownership
offer for 25%. $0.01 prior to 10th
day after acquisition. Standard Standard; also triggered by 15% beneficial ownership.
American
Health
Properties
Inc. 10 days following
10% acquisition or
tender offer
of 10%. $0.01 prior to close
of business on later
of Distribution date
or Acquiring Person
public announcement. Standard Standard; also triggered by 15% beneficial ownership.
American
Hoist &
Derrick C
ompany 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to 20%
acquisition; 1 Common
Share any time after
20% acquisition and
to prior 50%
acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
American
President
Companies,
Ltd. 10 days following
20% acquisition
or 10 business
days following tender
offer for 30%. $0.05 prior to 20
business days following
Stock Acquisition Date;
may be reinstated if
Acquiror reduces benefi-
cial ownership to
10% or less. Standard Standard; also triggered by 30% beneficial ownership or 1%
event; Acquiror's Rights become void.
American
President
Companies
Ltd. 10 days following
20% acquisition or
tender offer
for 20% $0.05 prior to 20%
acquisition in or
in case of fair offer. Standard Standard
American
Realty
Trust,
Inc. 10 days following 25%
acquisition or 10
days following
tender offer
for 25%. $0.01 only after receiving
recommendation from
"Independent Directors." Standard Standard; also triggered by above 25% beneficial ownership or
"Adverse Person" ownership of 10%.
American
Savings
Bank, FSB 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
American
Standard,
Inc. 15% acquisition. NA NA NA
American
Travellers
Corp. 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to 10 days
following Stock
Acquisition date. Standard Standard; also triggered by above 20% beneficial ownership
or "Adverse Person" 10% ownership.
American
Water
Works
Company,
Inc. 10 days following
25% acquisition or
tender offer
for 25%. $0.0005 prior to the
10th day following
25% acquisition. Standard Standard; also triggered by 35% beneficial ownership.
Acquiror's Rights become void.
Ameritech 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to the
10th day following
Stock Acquisition
Date; may be reinstated
if Acquiror reduces
ownership to 10%. Standard Standard; also triggered by 20% beneficial ownership except in
case of fair offer.
Ameritrust
Corporation 20 days following
15% acquisition or
20 days following
tender offer
for 15%. $0.01 (i) prior to
the close of business
on the earlier of
(a) August 17, 1998
or (b) the first
date of public announce-
ment that a Person
has become an
Acquiring Person, and
(ii) in certain circum-
stances after an
Acquiring Person
becomes the Beneficial
Owner of less than
10% of the outstanding
Common Shares. Standard Standard; also triggered by 15% beneficial ownership or 1%
event. Acquiror's Rights become void.
Ameron Inc. 10 days following
15% acquisition or
10 days following
tender offer
for 15%. $0.10 prior to 10 days
following 15%
acquisition. Standard Standard
Ametek, Inc 10 days following
20% acquisition
or tender offer
for 20%. $0.01 prior to 10
days following 20%. Standard Standard; also triggered by 20% beneficial ownership.
Amfac, Inc. 10 days following
15% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership;
Acquiror's Rights become void.
Amgen Inc. 10 days following
20% acquisition
or tender offer
for 20%. $0.01 prior to the
20th day following
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Amoskeag
Bank Shares 10 days following
20% acquisition or
10 business days
following 20%
tender offer. $0.01 prior to 20%
acquisition. Standard Triggered by 20% beneficial ownership or by 1% event except in
case of Permitted Offer.
Ampco-
Pittsburgh
Corporation 20 business days
following 20% acquisi-
tion or 30%
tender offer. $0.05 prior to 20
business days
following 20%
acquisition or
30% tender offer. Standard Standard; also triggered by 30% beneficial ownership or 1%
event.
Amre Inc. 10 days following
35% acquisition. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 35%;
Acquiror's Rights become void.
AmSouth
Bancorporation 10 days following
15% acquisition or
tender offer. $0.01 prior to Flip-in
Date. Standard Standard; also triggered by 15% beneficial ownership.
Acquiror's Right's become void.
AmVestors
Financial
Corporation 20th business day
following 20% acquisi-
tion; 20th business day
following tender offer
for 20%; or 20th business
day after a person is
declared to be an
"Adverse Person". $0.01 prior to the 20th
business day following
the Stock Acquisition
Date and may be reinstated
if Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20%
beneficial ownership, 1% event, or declaration of an "Adverse
Person". Acquiror's Rights become void.
Amwest
Insurance
Group, Inc. 10 business days
following 20%
acquisition. $0.01 prior to first
date exercisable to
purchase shares. Standard Standard
AnaComp Inc. 10 business days
following 15%
acquisition or
10 business days
following 30%
tender offer. $0.01 prior to close of
business on 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Anadarko
Petroleum
Corporation 10 days following
20% acquisition or
tender for 25% or
a person is declared
to be an "Adverse
Person". $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also triggered by 25% beneficial ownership or
declaration of an "Adverse Person". Acquiror's Rights become
void.
Analog
Devices, Inc. 10 business days
following 20%
acquisition or
30% tender offer. $0.02 prior to 10
days following the
Stock Acquisition Date;
may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Analysts
International
Corporation 10 days following
20% acquisition or
tender offer
for 20%. $0.01 within 10 days
after 20% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Anchor Glass 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Andover
Bancorp, Inc. 10 days following
20% acquisition,
tender offer for
20%, or after a person
is declared an
"Adverse Person". $0.02 prior to the
10th day following
20% acquisition. Standard Standard; Acquiror's Rights become void.
Andrew
Corporation 10 days following
27% acquisition or
10 business days
following tender
offer for 30%. $0.01 prior to the
20th day following
the Stock Acquisition
Date and may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 27% beneficial ownership, or 1%
event. Acquiror's Rights become void.
Angico-
Eagle Mines Following 20%
Acquisition except
in case of Permitted
Bid or 10 days
following 20%
tender offer. $0.01 prior to Flip-in
event. Standard Standard; triggered by 20% beneficial ownership except in case
of Permitted Bid.
Anthony
Industries 10 days following
20% acquisition
or tender offer
for 20%. $0.01 prior to 20%
acquisition. Standard Standard
Apogee
Enterprises
Inc. 10 days following
10% acquisition
or tender offer
for 10%. $0.01 prior to
Stock Acquisition
Date. Standard Standard
Apple
Bancorp Inc. 10 business days
following 20%
acquisition or
tender offer or
1% increase in
holdings for 20%
beneficial owners. $0.01 prior to stock
Acquisition Dates; allows
for permitted offer. Standard Standard; also triggered by 20% beneficial ownership.
Apple
Computer, Inc. 10 days following 20%
acquisition
or tender offer
for 30%. $0.01 prior to 10th day
following acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Applied
Materials,
Inc. 10 days following 20%
acquisition or
tender offer. $0.01 within 10 days
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Archive Corp. 10 days following 15%
acquisition or 10
business days following
30% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date (deadline may be extended
no longer than an additional
20 days); may be reinstated
if Acquiror reduces ownership
to 10%. Standard Standard; triggered by 20% beneficial ownership or by 1%
event.
Arctco Inc. 10 days following 10%
acquisition or
tender offer 10%. $0.01 prior to 10% Stock
Acquisition Date. Standard Standard
Arctco Inc. 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to 10%
acquisition in or
in case of fair offer. Standard Standard
Arctic
Alaska
Fisheries
Corp. 10 days following 15%
acquisition or tender
offer for 15% $0.001 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Arix Corp. 10 days following 15%
acquisition or 10
business days following
20% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard
Arkansas
Best
Corporation 10 days following 25%
acquisition or 19
business days following
a tender offer
for 25%. $0.02 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 25% beneficial ownership;
Acquiror's rights become void.
Arrow
Electronics,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date; will
be reinstated if
Acquiror reduces bene-
ficial ownership to
10% or less. Standard Standard; also triggered by reduction in dividends or
beneficial ownership of 20%.
Asarco
Incorporated 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to the 10th
day following 15%
Acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Ashton-Tate
Corporation 10 days following 15%
acquisition or tender
offer for 15%. $0.01 within 10 days
following 15%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Ask Computer
Systems Inc. 10 days following 25%
acquisition or tender
offer for 25%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Associated
Communications 10 business days
following 20% acquisition
or tender offer or 10 days
following "Adverse Person"
declaration. $0.01 prior to 10
business days following
Stock Acquisition Date
or prior to "Adverse
Person" declaration. Standard Standard; also triggered by 20% acquisition or "Adverse
Person" Declaration.
Athlone
Industries,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard; also triggered by 25% beneficial ownership or 1%
event. Acquiror's Rights become void.
Augat Inc. 10 days following 20%
acquisition or 10
business days following
tender offer
for 30%. $0.02 prior to 10 days
following the Stock
Acquisition Date and
may be reinstated if
The Acquiror reduces
beneficial ownership
to 10% or less or the
Board approves of a
merger with or acquisition
by a Person unrelated
to the Acquiring Person. Standard;
Acquiror's
Rights
Become
void. Standard; also triggered by 25% beneficial ownership or 1%
event. Acquiror's Rights become void.
Automated
Systems,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to the 20th
day following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or 1%
event. Acquiror's Rights become void.
Avery
International
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer
for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 30%;
Acquiror's Rights become void.
Avon
Products,
Inc. 10 days following 20%
acquisition or 10
business days following
a tender offer
for 20%. $0.01 prior to 20%
acquisition and under
certain circumstances
thereafter. Board may
exchange Rights at a
ratio of one Common
Share of 1/100th
Preferred Share per
Right between the
points of 20% and
50% acquisition. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
B.F.
Goodrich Co. 07/20/87 NY 1/100th share of Series
E Cumulative Participating
Preferred Stock 54.25 200 3.69 10
BRE Properties,
Inc. 08/14/89 DE 1 share of Common Stock 31.38 90 2.87 10
BT Financial
Corp. 03/27/91 Pa 1/100th share of Preferred
Stock 14.25 50 3.51 10
Baker
Hughes
Incorporated 03/23/88 DE 1/100th share of Series
One Junior Participating
preferred Stock 18.00 55 3.05 10
Baldor
Electric
Company 05/10/88 MO 1 share of Common Stock 25.875 75 2.90 10
Bally
Gaming
International
Inc. 01/22/93 DE 1/100th Share of Preferred
Stock 14.38 55 3.8 10
Baltimore
Bancorp 06/21/89 MD 1/100th share of Series
A Junior Participating
Stock 14.0 48 3.43 10
Bancorp of
Mississippi
Inc. 04/23/91 MS 1 share of Common Stock 22.00 100 4.55 10
Bancorp
New
Jersey Inc. 12/26/90 DE 1 share of Preferred
Stock NA 35 NA 10
BancTec, Inc. 05/24/88 DE 1 share of Common Stock 8.00 33.5 4.19 10
Bank of
Boston Corp. 06/28/90 MA 1/1000th share of Preferred
Stock 12.38 50 4.04 10
Bank of
Chester
County
(formerly Dime
Financial
Corp.) 12/19/89 PA 1/100th share of Series
A Junior A Participating
Preferred Stock 9.13 70 7.67 10
Bank of
New York
Company, Inc. 05/03/93 NY 1/1000 share of Preferred
Stock 53.75 200 3.72
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
B.F.
Goodrich Co. 10 days following
20% acquisition
or tender offer
for 20%. $0.05 prior to 20%
acquisition or upon
a merger or consolida-
tion with a corporation
which is not an Acquiror;
may be reinstated if
Acquiror reduces
beneficial ownership to
less than 5%. Standard Standard; also triggered by 25% beneficial ownership or
reduction in dividends. Acquiror's Rights become void.
BRE
Properties,
Inc. 10 days following
32% acquisition,
tender offer for
40% or declaration
of an "Adverse
Person." $0.01 prior to the 10th
day following 32%
acquisition. Standard Standard; also triggered by 40% beneficial ownership or 1%
event.
BT Financial
Corp. 10 days following
10% acquisition
or tender
for 10%. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard
Baker Hughes
Incorporated 30 days following
20% acquisition
or tender offer
for 30%. $0.03 prior to 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Baldor
Electric
Company Acquisition of 20%
or 10 days following
tender offer
of 20%. $0.05 prior to Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Bally
Gaming
International
Inc. 10 days following 10%
acquisition. $0.01 prior to acquisition. Standard Standard; also triggered by beneficial ownership of 10%;
Acquiror's Rights become void.
Baltimore
Bancorp 20 days following
20% acquisition
or tender offer
for 20%. $0.01 prior to 20 days
following 20% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Bancorp of
Mississippi
Inc. 10 days following
20% acquisition or
10 business days
following tender
offer for 10%. $0.01 prior to Stock
Acquisition date or
20% acquisition. Standard Standard
Bancorp
New
Jersey Inc. 10 days following
15% acquisition
or tender offer
for 15%. NA Standard Standard
BancTec, Inc. 10 days following
20% acquisition or
10 business days
following tender
offer for 30%. $0.05 prior to 15th
day following 20%
acquisition; may be
reinstated if Acquiror
reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 35%;
Acquiror's rights become void.
Bank of
Boston Corp. 10 days following
15% acquisition or
tender offer
for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Bank of
Chester
County
(formerly
Dime
Financial
Corp.) 10 business days
following 19.9%
acquisition or
tender offer or
4.9% "Adverse Person"
declaration. $0.001 prior to 10th
business day following
Stock Acquisition Date.
May be reinstated if
Acquiror reduces
ownership to 10%. Standard Standard; also triggered by 19.9% acquisition or by 1%
event.
Bank of
New York
Company, Inc. 10 days following
20% acquisition or
tender $0.05 prior to acquisition Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Bank South
Corporation 03/17/88 GA 1/100th share of Series
A Participating
Preferred Stock 13.00 50 3.85 10
BankAmerica
Corporation 04/11/88 DE 1/100th share of Series
E Cumulative Participating
Preferred Stock 11.00 50 4.55 10
Bankeast Corp. 10/24/89 NH 1/1000th share of Junior
Participating
Preferred Stock 3.00 18 6.00 10
Bankers Trust
New York
Corporation 02/16/88 NY 1/100th share of Series
C Junior Participating
Preferred Stock 35.00 140 4.00 10
Banknorth
Group Inc. 11/27/90 DE 1 share of Common Stock NA 35 NA 10
BankWorcester
Corp. 06/23/92 DE 1/100th share of
Preferred Stock 11.25 50.00 4.44 10
Banponce
Corporation 08/11/88 PR 1/100th share of Series
A Participating Cumulative
Preferred Stock 23 90 3.91 10
Banta
Corporation 10/29/92 WI 1/2 Share of Common
Stock 25.75 90.00 3.50 10
Barnett
Banks Inc. 02/21/90 FL 1/100th share of Junior
Participating
Preferred Stock 32.75 125 3.82 10
Barry Wright
Corporation 05/30/89 MA 1/100th share Series
A Junior Participating
Preferred Stock 7.125 70 9.82 7
Bassett
Furniture
Industries,
Inc. 05/04/88 VA 1 share of Common Stock 34.25 50 1.46 10
Battle
Mountain
Gold Company 11/11/88 NV 1/100th share of Series
A Junior Participating
Preferred Stock 16.00 60 3.75 10
Baush &
Lamb, Inc. 06/16/88 NY 1/100th share of Series
A Preferred Stock 44.38 200 4.51 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Bank South
Corporation 10 days following
20% acquisition or
tender offer
for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard
except
triggered
by sale of
30% of
assets or
earning
power. Standard; also triggered by 20% beneficial ownership.
BankAmerica
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer
for 20%. $0.001 prior to 20%
acquisition rounded
upward for each holder
to nearest $0.01. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's rights become void.
Bankeast
Corp. 10 business days
following 20%
acquisition, 25%
tender offer or "Adverse
Person" declaration. $0.01 prior to 10th
business day following
Stock Acquisition Date;
may be reinstated if
Acquiror reduces ownership
below 10%. Standard Standard; triggered by 25% beneficial ownership or "Adverse
Person" declaration.
Bankers Trust
New York
Corporation 10 days following 20%
acquisition or
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Banknorth
Group Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
BankWorcester
Corp. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or
in case of fair
offer. Standard Standard
Banponce
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer for 25%. $0.05 prior to the 10th
day after the Stock
Acquisition Date and
may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 25% beneficial ownership.
Acquiror's Rights become void.
Banta
Corporation 10 days following 20%
acquisition or
tender offer for 20% $.01 prior to 20%
acquisition in or in case
of fair offer. Standard
Barnett
Banks Inc. 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 10th day
after Stock Acquisition
Date. Standard Standard; also triggered by 10% beneficial ownership.
Barry Wright
Corporation 10 days following 20%
acquisition tender offer,
or declaration of an
"Adverse Person." $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial
Bassett
Furniture
Industries,
Inc. 10 days following 20%
acquisition or 10
business days following
tender offer for 30%. $0.01 prior to 10 business
days following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become
Battle
Mountain
Gold Company 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or 1%
event. Acquiror's Rights become void.
Baush &
Lamb, Inc. 10 days following 20%
acquisition or 10
business days following
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Baxter
International,
Inc. 03/20/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 19.38 70 3.61 10
Bay View
Capital Corp. 07/26/90 DE 1 share of Common Stock 17.38 55 3.16 NA
BayBanks, Inc. 12/15/88 MA 1/100th share of Series
A Junior Participating
Preferred Stock 44.25 200 4.52 10
Beckman
Instruments,
Inc. 03/28/89 DE 1/100th share of Series
A Participating Cumulative
Preferred Stock 19.25 75 3.90 10
Bell
Atlantic
Corporation 03/28/89 DE 1/100th share of Series
A Junior Participating
Preference Stock 76.00 250 3.29 10
Bell South
Corp. 11/28/89 GA 1/100th share of
Preferred Stock 52.75 175 3.32 10
Bemis
Company, Inc. 08/03/89 MO 1/100th share of Series
A Junior Preferred Stock 33.88 120 3.54 10
Berlitz
International
Inc. 02/05/92 NY 1 share of Common Stock 19.50 108.00 5.54 10
Berry
Petroleum 12/11/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 13.69 38 2.78 10
Bethlehem
Steel
Corporation 09/28/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 21.00 80 3.81 10
Betz
Laboratories,
Inc. 09/08/88 PA 1 share of Common Stock
or a combination of
securities and assets
of equivalent value 46.25 150 3.24 10
Big
Bear, Inc. 12/22/88 DE 1/3rd share of Common
Stock 34.88 NA NA NA
Biogen Inc. 05/12/89 MA 1/100th share of Series
A Junior Participating
Stock 12.25 68 5.55 10
Bio-
Medicus Inc. 05/25/88 MN 1/2 share of Common
Stock 6.88 25 3.64 10
Biomet 12/14/89 IN 1 share of Common Stock 27.00 150 5.56 10
BMC West
Corporation 08/03/93 DE 1/100 P 18.75 50 2.67 10
Boatman's
Bancshares
Inc. 08/14/90 MO 1/100th share of
Preferred Stock 28.25 110 3.89 20
Bohemia 02/28/89 OR 1/100th share of Series
A Participating
Preferred Stock 19.00 60 3.16 10
Boise
Cascade
Corporation 12/13/88 DE 1 share of Common Stock 40.38 175 4.33 10
Bolar
Pharmaceutical
Company Inc. 11/01/91 NY 1 share of Common Stock 6.38 35.00 5.49 10
Bolt
Beranek and
Newman Inc. 06/23/88 MA 1 share of Common Stock 17.38 90 5.18 10
Borden, Inc. 11/29/88 NJ 1/100th share of Series
C Junior Participating
Preferred Stock 56.00 175 3.12 10
Borland
International
Inc. 12/20/91 DE 1/1000th share of
Preferred Stock 73.50 500.00 6.80 10
Boston
Digital Corp. 09/04/90 MA 1 share of Common Stock NA 14.00 NA 10
The Boston
Five Bancorp 12/20/89 DE 1/100th share of Series
A Preferred Stock 4.88 32 6.56 10
Boston
Technology
Group 05/09/91 DE 0.4 share of Common
Stock 4.44 12.4 2.80 10
Bradley
Real
Estate Trust 12/06/89 MA 1 share of Common Stock 10.50 38 3.62 10
Briggs &
Stratton 12/20/89 DE 1/2 share of Common
Stock 24.63 85 3.45 10
Broadway
Financial
Corp. 11/13/89 NJ 1/100th share of Junior
Participating
Preferred Stock 13.13 50 3.81 10
Browne &
Sharpe
Manufacturing
Company 03/09/88 DE 1/100th share of Series
A Participating
Preferred Stock 21.13 55 2.60 10
Browning-Ferris
Industries,
Inc. (yyy) 06/01/88 DE 1/100th share of Series
A Participating
Preferred Stock 23.38 110 4.70 10
Brunswick
Corporation 04/03/89 DE 1/100th share of Series
B Junior participating
Preferred Stock 19.75 100 5.06 10
Brush
Wellman Inc. 01/26/88 OH 1/100th share of Serial Series
A Preferred Stock 23.75 100 4.21 10
Buffton
Corporation 06/23/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 7.63 28.5 3.74 10
Burlington
Resources,
Inc. 02/23/89 DE 1/100th share of Series
A Preferred Stock 49.63 95 1.91 10
Burr-Brown
Corporation 07/21/89 DE 1/100th share of
Common Stock 9.75 47.5 4.87 10
Businessland,
Inc. 11/08/88 CA 1/1000th share of Series
A Junior Participating
Preferred Stock 12.75 55 4.31 10
Butler
Manufacturing
Company 10/03/88 DE 1/100th share of Series
A, Class 1
Preferred Stock 33.50 100 2.99 10
BWIP
Holding Inc. 07/30/93 DE 1/100th share of
Preferred Stock 24.25 85.00 3.51 10
Bytex Corp. 04/12/91 DE 1 share Common Stock 12.50 60 4.80 10
CACI
International
Inc. 6/27/90 DE 1 share Class A
Common Stock NA 11 NA 10
CAE
Industries
Ltd. 03/07/90 TOR 1 share Common Stock NA 30[cdn] NA 5
CB&T
Bancshares,
Inc. 04/20/89 GA 1 Share Common Stock 13.75 65 4.73 10
CCB
Financial
Corp. 02/26/90 NC 1/100th share of
Preferred Stock 36.75 100 2.72 10
CCNB
Corporation 11/09/89 PA 1/100th share of Series
B Preferred Stock 21.75 90 4.14 10
CFS Financial
Corp. 10/16/89 VA 1/100th share of Series
A Junior Participating
Preferred Stock 17.25 60 3.48 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Baxter
International,
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's rights become
Bay View
Capital Corp. 10 days following 10%
acquisition or
tender offer for 10%. NA Standard
BayBanks, Inc. 10 days following 20%
acquisition tender offer
for 25%, or after a person
is declared an "Adverse
Person". $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard: also triggered by 25% beneficial ownership.
Beckman
Instruments,
Inc. 10 days following 20%
acquisition or 10 business
days following
tender offer for 25%. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%. Standard Standard; triggered by 25% beneficial ownership.
Bell Atlantic
Corporation 10 days following 15%
acquisition or tender
offer for 20%. $0.01 prior to the 10th
day following 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Acquiror's Rights become void.
Bell South
Corp. Following 10% acquisition
without Board approval or
10 days following
25% tender offer. $0.01 prior to Stock
Acquisition Date. Standard Standard; also triggered by 10% beneficial ownership.
Bemis
Company, Inc. 15 days following 20%
acquisition on
20% tender offer. $0.01 prior to 30 days
following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership, 1%
event, or declaration of an "Adverse Person" with 10%
ownership.
Berlitz
International
Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in case
of fair offer. Standard Standard
Berry
Petroleum 10 days following 20%
acquisition or 1%
acquisition by 20% holder
or 10 business days
following 20%
tender offer. $0.01 prior to Distribution
Rate; may be reinstated if
Acquiror declares ownership
below 10%. Standard Standard; also triggered by 20% beneficial ownership.
Bethlehem
Steel
Corporation 10 days following 20%
acquisition or 10 days
following tender
offer for 20%. $0.01 prior to the 10th day
following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership, or a
1% event. Acquiror's Rights become void.
Betz
Laboratories,
Inc. 10 days following a 20%
acquisition or 65 days
following tender
offer for 20%. $0.01 prior to the 10 days
following the Stock
Acquisition Date. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Big
Bear, Inc. 30% acquisition or
tender offer for 30%. NA Standard Standard
Biogen Inc. 10 business days following
20% acquisition, tender
offer for 20%, or after
a person is declared an
"Adverse Person." $0.01 prior to 10th day
following 20%
acquisition. Standard Standard; Acquiror's Rights become void.
Bio-Medicus
Inc. 10 days following
20% acquisitions. $0.01 prior to 20 days
following 20%
acquisition. Standard Standard
Biomet 10 business days following
15% acquisition or
30% tender offer. $0.01 prior to 10th day
following stock Acquisition
Date or in connection with
unrelated merger or following
expiration of subscription
period if no person
owns 15%. Standard Standard; also triggered by 15% beneficial ownership.
BMC West
Corporation 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to
acquisition. Standard Standard
Boatman's
Bancshares
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
Bohemia 10 days following 25%
acquisition or
tender offer for 30%. $0.01 prior to the 10th
day following 25%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Boise
Cascade
Corporation 10 days following 20%
acquisition, tender offer
for 30%, or after a person
is declared to be an
"Adverse Person." $0.01 prior to the 10th day
following 20%
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Acquiror's Rights become void.
Bolar
Pharmaceutical
Company Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in case
of fair offer. Standard Standard
Bolt
Beranek
and Newman
Inc. 10 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to the Expiration
Date by 2/3 majority vote of
Continuing
Directors. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by reduction in dividends; Acquiror's
Rights become void.
Borden, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.033 prior to the 10th
day following
20% acquisition. Standard Standard; Acquiror's Rights become void.
Borland
International
Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Boston
Digital Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
The Boston
Five Bancorp 10 business days following
15% acquisition or
30% tender offer. $0.01 prior to 10th
business day following
Stock Acquisition
Date. Standard;
also triggered
by 30% sale
of assets
or earning
power. Standard; also triggered by 15% beneficial ownership or by 1%
event.
Boston
Technology
Group 10 business days following
20% acquisition or
30% tender offer. $0.02 prior to 10% Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard
Bradley
Real
Estate Trust 10 days following 15%
acquisition or 10 business
days following
15% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
Briggs &
Stratton 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.01 prior to 20% beneficial
ownership. Standard Standard; also triggered by 20% beneficial ownership.
Broadway
Financial
Corp. 10 days following 15%
acquisition or 10 business
days following
15% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
Browne &
Sharpe
Manufacturing
Company 10 business days following
10% acquisition or
tender offer for 15%. $0.03 by 2/3 vote of
Continuing Directors
prior to 15 days following
the Stock Acquisition
Date. Standard;
except
triggered
by sale
of 30%
of assets
or earning
power. Standard
Browning-
Ferris
Industries,
Inc. (yyy) 10 business days following
20% acquisition or
tender offer for 30%. $0.05 prior to the 10th
business day following
Stock Acquisition
Date. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 30%;
Acquiror's Rights become void.
Brunswick
Corporation 10 days following 20%
acquisition or beneficial
ownership of 30%. $0.05 prior to acquisition
or beneficial
ownership. Standard Standard; also triggered by 15% beneficial ownership.
Brush
Wellman Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.03 prior to 10 days
following 20% acquisition;
may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 50% beneficial ownership.
Buffton
Corporation 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th day
following the Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership;
Acquiror's Rights become void.
Burlington
Resources,
Inc. 20% acquisition or 10 days
following tender
offer for 20%. $0.05 prior to 20%
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Burr-Brown
Corporation 10 days following 20%
acquisition or 10 days
following 20%
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Businessland,
Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th day
following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or 1%
event. Acquiror's Rights become void.
Butler
Manufacturing
Company 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership
BWIP
Holding Inc. 10 business days following
15% acquisition $0.01 prior to
acquisition. Standard Standard; triggered by 15% beneficial ownership
Bytex Corp. 10 business days following
20% acquisition or
20% tender offer. $0.01 prior to 10% stock
acquisition date. Can
be reinstated if beneficial
ownership falls
below 10%. Standard Standard
CACI
International
Inc. 10 days following 20%
acquisition, or no later
than 19 days following
20% tender offer. $0.01 prior to
Distribution Date. Standard Standard; also triggered by 1% event.
CAE
Industries
Ltd. Announcement of 20%
acquisition or
20% tender offer. $0.001 any time prior to
Flip-in Event. None Standard; also triggered by 20% beneficial ownership.
CB&T
Bancshares,
Inc. 10 days following 10%
acquisition or
tender offer for 15%. $0.01 prior to
triggering event. Standard Standard; also triggered by 15% beneficial ownership.
CCB Financial
Corp. 20 business days following
15% acquisition or
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 15% beneficial ownership or 1%
event.
CCNB
Corporation 10 business days following
20% acquisition or
tender offer. $0.01 prior to 10th business
day following Stock Acquisition
Date; if redemption is requested
after Stock Acquisition Date
or after change in majority
of directors resulting from
a proxy solicitation and if
solicitor wishes to be
Acquiring Person, request must
be accepted by majority of
Continuing
Directors. Standard Standard; also triggered by 20% acquisition except in case
of fair offer.
CFS Financial
Corp. 10 business days following
20% acquisition or
tender offer for 25%. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
below 10%. Standard Standard; triggered by 25% beneficial ownership.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
CFW
Communications
Co. 02/26/90 VA 1/1000th share of Series
A Junior Participating
Preferred Stock 19.00 130 6.84 10
CML
Group Inc. 06/28/88 DE 1/100th share Series
A Junior Participating
Preference Stock 22.13 92 4.16 10
CMS/Data
Corp. 11/08/91 FL 1 share of Common Stock 1.63 12.00 7.38 10
CNW
Corporation 10/31/88 DE 1 share of Common Stock 27.38 90 3.29 10
CPC
International
Inc. 3/19/91 DE 1/200th share of
Preferred Stock 78.63 325 4.13 10
CPI Corp. 05/01/89 DE 1/100th share of Series
A Participating
Preferred Stock 24.5 85 3.47 10
CRS
Sirrine Inc. 11/29/88 DE 1/5th share of
Common Stock 24.25 72 2.97 10
Cabot Oil
& Gas Corp. 1/21/91 DE 1/100th share of
Preferred Stock 28.00 55 1.96 10
Cadmus
Communications 02/01/89 VA 1/1000th share of Junior
Participating
Preferred Stock 12.75 45 3.53 10
Caere Corp. 04/17/91 DE 1/100th share of
Preferred Stock 23.13 90 3.89 10
Caesars
World, Inc. 01/10/89 FL 1/200th share of Series
A Junior participating
Preferred Stock 32.00 125 3.91 10
CalFed Inc. 03/16/88 DE 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 26.00 100 3.85 10
California
Amplifier 09/05/91 DE 1/100th share of
Preferred Stock 2.75 11 4.00 10
California
Amplifier Inc. 09/05/91 DE 1/100th share of
Preferred Stock 2.75 11.00 4.00 10
California
Energy
Company, Inc. 11/11/88 DE 1/100 share of Series
A Junior
Preferred Stock 8.83 52 5.89 10
California
Microwave Inc. 07/27/89 DE One share of Common
Stock 9.13 35 3.83 10
Cambridge
BioScience
Corporation 03/21/89 DE 1 Share of Common Stock 14.13 60 4.25 10
Canadian
Pacific 12/05/89 CAN 1 Share of Common Stock
or a fraction of right
for Convertible Rights. NA $85
(Cdn) NA 10
Capital
Cities/ABC 12/15/89 NY 1/100th share of Series
A Preferred Stock. 547.00 2,000 3.66 10
CareerCom
Corp. 12/12/89 PA 1/100th share of Series
C Participating
Preferred Stock. 5.25 40 7.62 10
Carlisle
Companies
Incorporated 02/08/89 DE 1/1000th share of Series
A Preferred Stock 33.88 160 4.72 10
Carolco
Pictures Inc. 06/18/90 DE 1/100th share of Series
R Junior Participating
Preferred Stock. 12.375 50 4.04 10
Carolina
First Corp. 11/15/93 SC 1/2 share of Common
Stock 13.5 18.00 1.33 10
Carpenter
Technology
Corporation 05/11/89 DE 1 share Common Stock 46.875 90 1.92 10
Carrington
Laboratories 10/16/91 MN 1/100th share of
Preferred Stock 11.75 80 6.81 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
CFW
Communications
Co. 10 business days following
10% acquisition or 10 business
days following 10%
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; triggered by 20% beneficial ownership.
CML
Group Inc. 10 days following 20%
acquisition or 10 business
days following
tender offer for 30%. $0.02 prior to 10 days
following the Stock
Acquisition Date.
May be reinstated if
(i) Acquiror reduces
beneficial ownership
to 10% or less, or (ii)
the Board approves the
merger of the Company
by a Person unrelated
to the Acquiring
Person. Standard Standard; also triggered by 30% beneficial ownership, or 1%
event. Acquiror's Rights become void.
CMS/Data
Corp. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
CNW
Corporation 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 20%
acquisition redemption
rights may be reinstated
if acquisition percentage
drops below 10%. Standard Standard; also triggered by 1% event.
CPC
International
Inc. 10 days following 10%
acquisition of
tender offer for 30%. $0.01 prior to Stock
Acquisition Date. Standard Standard
CPI Corp. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to
acquisition. Standard Standard
CRS
Sirrine Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10 days
following Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership or 1%
event; Acquiror's Rights become null and void.
Cabot Oil
& Gas Corp. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Can
be reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Cadmus
Communications 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 10th day
following stock acquisition;
may be reinstated if
Acquiror reduces ownership
to less than 10%. Standard Standard; also triggered by 20% beneficial ownership.
Caere Corp. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Caesars
World, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
CalFed Inc. Primary Rights: 10 business
days following 15%
acquisition.
Secondary Rights: 25%
acquisition or tender
offer. $0.01 prior to 10 business
days following 15% acquisition
for Primary Rights and 25%
acquisition for
Secondary Rights. Standard Standard; secondary rights also triggered by 25% beneficial
ownership.
California
Amplifier 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
California
Amplifier Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
California
Energy
Company, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.02 prior to 10th day
following 20%
acquisition. Standard Standard; triggered by 20% beneficial ownership. Acquiror's
Rights become void.
California
Microwave Inc. 20 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to 20th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%. Standard Standard; triggered by 30% beneficial ownership except in
case of fair offer.
Cambridge
BioScience
Corporation 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to the 10th day
following 20%
acquisition. Standard Standard; Acquiror's Rights become void.
Canadian
Pacific 10 days following 15%
acquisition or tender
offer except in case
of Permitted Bid. $0.01 ($0.001/Convertible
Right) prior to Flip-in
or Flip-over event; can
be redeemed pursuant
to Permitted Bid. Standard Standard; also triggered by 15% beneficial ownership.
Capital
Cities/ABC 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
CareerCom
Corp. 10 business days following
15% acquisition or 10%
"Adverse Person" declaration
or 15 business days
following 20%
tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
to 10%, or in unrelated
merger. Standard Standard; triggered by 20% beneficial ownership, 1% event,
or "Adverse Person" declaration.
Carlisle
Companies
Incorporated 20 days following 20%
acquisition, tender offer
for 25%, or after a person
is declared an "Adverse
Person." $0.01 prior to the 20th day
following 20%
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Acquiror's Rights become void.
Carolco
Pictures Inc. 10th business day following
20% acquisition or
20% tender offer. $0.01 prior to 10th business
day following 20%
Ownership Date. Standard Standard; also triggered by 20% beneficial ownership or 1%
event.
Carolina
First Corp. 10 business days following
10% acquisition or
tender offer of 15%. $0.001 prior to 15%
acquisition Standard Standard; triggered by 10% beneficial ownership
Carpenter
Technology
Corporation 10 days following 20%
acquisition or declaration
or an "Adverse Person." $0.05 prior to 10 days
following
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Carrington
Laboratories 10 days following 20%
acquisition or 20%
tender offer. $0.01 prior to 20% Stock
Acquisition Date. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Carrington
Laboratories
Inc. 09/19/91 MN 1/100th share of
Preferred Stock 11.75 80.00 6.81 10
Carson Pirie
Scott & Co. 11/08/93 IL 1 share of Common Stock 11.75 40.00 3.40 10
Cascade
Natural Gas 03/19/93 WA 1/100th share of
Preferred Stock 24.63 85 3.45 10
Casey
General
Stores, Inc. 06/14/89 IA 1 share Common Stock 10.625 40 3.76 10
Castle
Energy 04/21/94 DE 1/100th of Preferred 10.25 35.00 3.41 10
Cellular Inc. 12/10/90 CO 1/100th share of
Preferred Stock 8.50 45.00 5.29 10
Centerre
Bancorporation 03/15/88 MO 1/100th share of Series
A Junior Participating
Preferred Stock 34.75 120 3.45 10
Centex
Corporation 05/16/88 NV 1/100th share of Series
D Junior Participating
Preferred Stock 26.88 120 4.47 10
Centex
Telemanagement
Inc. 09/15/93 DE 1/1000th share of
Preferred Stock 6.75 30.00 4.44 10
Centigram
Communications
Corp. 10/20/92 DE 1/1000th share of
Preferred Stock 8.50 45.00 5.29 10
Centocor, Inc. 09/26/88 PA 1/100th share of Series
A Preferred Stock 21.75 170 7.82 10
Central
Fidelity
Banks, Inc. 05/03/89 VA 100th share of
Preferred Shares 30 110 3.67 10
Cephalon Inc. 11/22/93 PA 1/100th share of
Preferred Stock 17.75 90.00 5.07 10
Cetus
Corporation 08/01/88 DE 1 share of Common Stock 11.50 60 5.22 10
Champion
Products 12/27/88 NY 1 share of Common Stock 55.75 150 2.69 10
Charming
Shoppes, Inc. 4/27/89 PA 1/300th share of Series
A Junior Participating
Preferred Stock 13.88 70 5.05 10
Charter One
Financial,
Inc. 11/20/89 DE 1/100th share of Series
A Participating
Preferred Stock 18.25 90 4.93 10
The Chase
Manhattan
Corporation 02/15/89 DE 1/100th share of Junior
Participating
Preferred Stock 32.25 125 3.88 10
Checkpoint
Systems 12/15/88 PA 1 share of Common Stock 9.00 40 4.44 10
Chelsea
Industries,
Inc. 06/10/88 Ma 1/100th share of Series
A Preferred Stock 16.25 65 4.00 10
Chemdesign
Corp. 02/20/90 Ma 1/100th share of Series
A Junior Participating
Cumulative Preferred
Stock 14.25 56 3.93 10
Chemical
Banking
Corporation 04/13/89 De 100th share of Junior
Participating
Preferred Stock 34.875 150 4.30 10
Chesapeake
Corporation 03/15/88 VA 1/1000th share of Series
A Junior Participating
Preferred Stock 20.00 70 3.50 10
Chevron
Corporation 11/22/88 DE 1/100th share of Series
A Participating
Preferred Stock 44.50 130 2.92 10
Chi Chi's,
Inc. 11/10/87 DE 1/1000th share of Series
A Junior
Preferred Stock 8.00 30 3.75 10
The Chicago
Dock and
Canal Trust 07/20/88 IL 1 share of Common Stock 24.00 75 3.13 10
Chrysler
Corporation 02/04/88 DE 1/100th share of Junior
Cumulative Participating
Preferred Stock 27.00 120 4.44 10
The Chubb
Corporation 06/02/89 NJ 1/100th share of Series
A Cumulative Participating
Preferred Stock 70.0 225 3.21 10
Church &
Dwight 04/26/89 DE 1/100th share of Junior
Participating Cumulative
Preferred Stock. 13.50 50 3.70 10
Church's Fried
Chicken, Inc. 11/07/88 TX 1 share of Common Stock 7.75 20 2.58 10
Cimco Inc. 12/05/92 DE 1/100th Share of
Preferred Stock NA 25 NA 10
Circuit City
Stores, Inc. 05/02/88 VA 1/100th share of Series
E Cumulative Participating
Preferred Stock 28.00 140 5.00 10
Circus Circus
Enterprises 07/14/94 NV 1 Share of Common 27.38 125.00 4.57 10
Citizens
Bancorp 12/11/88 MD 10 shares of Common
Stock NA 2.50 NA 10
Citizens
Banking Corp. 07/20/90 MI 1/100th share of
Preferred Stock 21.25 75.00 3.53 10
City Holding
Company 04/04/91 WV 1/100th share of
Preferred Stock 15.00 53 3.53 10
Cleveland
Cliffs Inc. 11/19/91 OH 1 share of Common Stock 35.63 85.00 2.39 10
The
Clothestime,
Inc. 3/27/92 DE 1 Share of Common Stock 9.625 60.00 6.23 10
Coachmen
Industries,
Inc. 01/19/90 IN 1 share of common stock 6.75 30 4.44 10
Cobe
Laboratories,
Inc. 07/27/89 CO 1 share of Common Stock 21.00 90 4.29 10
Coeur d'Alene
Mines 05/24/89 ID 1/100th share of
Preferred Stock 16.25 100 6.15 10
Coherent, Inc. 12/16/88 CA 1 share of Common Stock 9.75 80 8.21 10
Collins
Foods Inc. 01/22/91 DE 1/100th share of Series
A Junior Participating
Preferred Stock 7.50 40 5.33 10
Colorado
National
Bankshares,
Inc. 06/27/88 CO 1/100th share of Series
A Junior Participating
Preferred Stock 15.63 70 4.48 10
Combustion
Engineering 12/19/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 27.38 100 3.65 10
Comerica
Incorporated 01/26/88 DE 1/100th share of Series
C Participating
Preferred Stock 44.17 175 3.96 10
Commerce
Bancshares,
Inc. 08/23/88 MO 1/100th share of Series
A Preferred Stock 39.50 150 3.80 10
Commercial
Federal
Corporation 12/20/88 NE 1/100th share of Series
A Junior Participating
Cumulative Preferred
Stock 7.38 42 5.69 10
Commercial
Intertech
Corp. 11/29/89 OH 1/100th share of Series
A Junior Participating
Preferred Stock 21.75 75 3.45 10
Commonwealth
Bancshares
Corp 07/11/90 PA 1/100th share of
Preferred Stock NA 60.00 NA 10
Community
Banks Inc. 12/01/90 PA 1 share of Common Stock NA 20.00 NA 10
Community
Bank Shares 10/18/89 NH 1/100th share of Series
A Preferred Stock 8.50 40 4.71 10
Comp USA 04/29/94 DE 1/10,000th of Preferred 18.13 120.00 6.62 10
Compaq Computer
Corporation 5/18/89 DE 1/100th share of new series
of participating
Preferred Stock. 81 380 4.69 10
Computer
Horizons,
Corp. 07/06/89 DE 1/100th share of Series
A Preferred Stock 7.875 30 3.81 10
Computer
Products, Inc. 11/09/88 FL 1 share of Common Stock 2.00 10 5.00 10
Computer
Task
Group, Inc. 01/16/89 NY 1/1000th share of Series
A Participating Cumulative
Preferred Stock 12.88 50 3.88 10
Comstock
Resources Inc. 12/04/90 NV 1/100th share of
Preferred Stock 3.75 20.00 5.33 10
ConAgra, Inc. 09/28/89 DE 1 share of Common Stock 37.63 200 5.31 10
Concurrent
Computer 07/25/89 DE 1/100th share of Series
A Participating Cumulative
Preferred Stock. 4.63 27.50 5.94 10
Concurrent
Computer Corp. 07/31/92 DE 1/100th share of
Preferred Stock 2.125 30.00 14.12 10
Consolidated
Capital
Income
Trust 03/13/89 CA 1 share Common Stock NA 14 NA 10
Consolidated
Capital
Realty
Investors 03/13/89 CA 1/100th share of
preference stock NA 2.50 NA 10
Consolidated
Capital
Special
Trust 03/13/89 CA 1 share of Common Stock NA 12 NA 10
Consolidated
Rail Corp. 07/19/89 PA 1 share Common Stock NA 105 NA 10
Consolidated
Stores Corp. 04/18/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 7.63 35 4.59 10
Constellation
Bancorp. 02/19/91 NJ 1/100th share of
Preferred Stock. 8.50 55 6.47 10
Contel
Corporation 11/3/88 DE 1/100th share of Series
K Junior Participating
Preferred Stock 38.75 120 3.10 10
Continental
Bank Corp. 07/22/91 DE 1/100th share of
Preferred Stock 13.75 55 4.00 10
Continental
Medical
Systems Inc. 03/11/91 DE 1/1000th share of
Preferred Stock 11.00 85.00 7.73 10
Cooker
Restaurant
Corp. 05/27/92 OH 1/100th share of
Preferred Stock 15.5 15.00 .97 8
Cooper
LaserSonics,
Inc. 01/07/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 0.88 5.50 6.25 10
Copley
Properties
Inc. 06/28/90 DE 1 share of Common Stock 12.00 36.00 3.00 10
Corporate
Software
Incorporated 05/12/ 89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 13.50 70 5.19 10
Costco
Wholesale
Corporation 07/14/93 WA 1/1000 share of
Preferred Stock 16.50 80 4.85 10
Countrywide
Credit
Corporation 02/10/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 9.19 35 3.81 10
Crane Co. 06/27/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 31.00 105 3.39 10
Cray
Research Inc. 05/15/89 DE 1 share Common Stock 53.125 250 4.71 10
Credo
Petroleum
Corporation 04/13/89 CO 1 share of new series of
Preferred Stock 1.938 NA NA 10
Crestar
Financial
Corporation 06/23/ 89 VA 1/1000th share of Series
C Participating Cumulative
Preferred Stock. 29.5 115 3.90 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Carrington
Laboratories
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Carson Pirie
Scott & Co. 10 business days following
15% acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 25% beneficial ownership.
Cascade
Natural Gas 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 20%
acquisition. Standard Standard; triggered by 20% beneficial ownership. Acquiror's
Rights become void.
Casey General
Stores, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Castle Energy 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 15% beneficial ownership
Cellular Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date or
10% Acquisition. Standard Standard
Centerre
Bancorporation 10 days followings 20%
acquisition or
tender offer. $0.01 prior to 20%
acquisition Standard Standard
Centex
Corporation 10 days following 20%
acquisition or 10 business
days following
tender offer for 20%. $0.05 prior to 15th day
following 20% acquisition;
may be reinstated if
Acquiror reduces ownership
to 10% or less. Standard Standard; also triggered by beneficial ownership of 20%
Acquiror's Rights become void.
Centex
Telemanagement
Inc. 10 business days following
20% acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 20% beneficial ownership
Centigram
Communications
Corp. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Centocor, Inc. 10 days following 20%
acquisition or 10 business
days following
tender offer for 30%. $0.02 prior to the 10th
day following the Stock
Acquisition Date and may
be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Central
Fidelity
Banks, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition Standard Standard; Acquiror's Rights become void.
Cephalon Inc. 10 business days following
20% acquisition. $0.01 prior to
acquisition Standard Standard; triggered by 20% beneficial ownership
Cetus
Corporation Primary Rights: 10th business
day following 15% acquisition.
Secondary Rights: 10th business
day following 25% acquisition
or the earlier of the
Flip-Over Provisions. Primary Rights: $0.01 prior
to the 10th business day
following the 15% Acquisition
Date. Secondary Rights: $0.01
prior to the 10th business day
following the 25% Acquisition
Date or the earlier of the
Flip-over
Provisions. Standard
Acquiror's
Rights
become
void. Standard; also triggered by 15% beneficial ownership.
Acquiror's Rights become void.
Champion
Products 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 40% beneficial ownership.
Charming
Shoppes, Inc. 10 days following 20%
acquisition or 65 days
following tender
offer of 20% $0.01 prior to ten days
following Stock Acquisition
Date Standard Standard
Charter One
Financial,
Inc. 10% acquisition or 10 days
following 10%
tender offer $0.01 prior to Stock
Acquisition Date Standard Standard; also triggered by 10% beneficial ownership except in
case of permitted offer.
The Chase
Manhattan
Corporation 10 days following 20%
acquisition or
tender offer for 25% $0.01 prior to the 10th day
following 20%
acquisition Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Checkpoint
Systems 10 days following 15%
acquisition, 15 business
days following 20% tender
offer, or 10 business days
following Adverse
Person declaration. $0.01 prior to 10th day
following Stock Acquisition
Date or Adverse Person declara-
tion; may be reinstated if
Acquiror reduces beneficial
ownership below 10% or if
Board approves merger
with unrelated
party. Standard Standard; triggered by 20% beneficial ownership or Adverse
Person declaration or by 1% event.
Chelsea
Industries,
Inc. 20 business days following
20% acquisition or
tender offer for 30%. $0.05 prior to the 20th business
day following the Shares Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 35% beneficial ownership;
Acquiror's Rights become void.
Chemdesign
Corp. 10 days following 20%
acquisition or 10 business
days following 20% tender
offer or 15% "Adverse
Person". $0.01 prior to person declared
"Adverse Person" or 10th day
after Stock Acquisition
Date. Standard Standard; also triggered by 15% "Adverse Person" ownership.
Chemical
Banking
Corporation 10 days following 20%
acquisition, tender offer
of 25%, or "Adverse Person"
determined at 10% level $0.01 prior to 10 days
following
acquisition Standard Standard; Acquiror's Rights becomes void.
Chesapeake
Corporation 10 days following 20%
acquisition or 10 business
days following
tender offer for 20%. $0.01 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to less than 10%. Standard Standard; also triggered 30% beneficial ownership.
Chevron
Corporation 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to the 10th day
following 10%
acquisition. Standard Standard; also triggered by 10% beneficial ownership.
Chi Chi's,
Inc. 10 days following 20%
acquisition or 10 business
days following
tender offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
The Chicago
Dock and
Canal Trust 10 days following 25%
acquisition or
tender offer for 30%. $0.01 prior to the 100th day
following 25%
acquisition. Standard Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Chrysler
Corporation 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.05 prior to 10 business
days following 20%
acquisition; may be reinstated
if Acquiror reduces beneficial
ownership to less
than 5%. Standard;
also
triggered
by transfer
of more
than 50%
of the
cash flow
of the
company and
its sub-
sidiaries
taken as
a whole. Standard; also triggered by 20% beneficial ownership or
declaration of an "Adverse Person" with 10% ownership.
The Chubb
Corporation 10 days following 25%
acquisition or
tender offer for 25%. $0.01 prior to 10th day
following 25%
acquisition. Standard Standard; Acquiror's Rights becomes void.
Church &
Dwight 10 business days following
20% acquisition or
tender offer or Adverse
Person declaration. $0.01 prior to the 10th
business day following
Stock Acquisition Date or
Adverse Person
declaration. Standard Standard; also triggered by 20% beneficial ownership or
Adverse Person Declaration.
Church's
Fried
Chicken, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th day
following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Cimco Inc. 10 days following
20% acquisition. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Circuit City
Stores, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10 days
following Share
Acquisition Date. Standard Standard
Circus Circus
Enterprises 10 days following
10% acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 10% beneficial ownership
Citizens
Bancorp 30 days following
30% acquisition or
10 days following
30% tender offer. $0.01 prior to
Distribution Date. Standard Standard; also triggered by 30% beneficial ownership.
Citizens
Banking Corp. 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date (or
20% Acquisition); may
be reinstated if Beneficial
Ownership falls
below 5%. Standard Standard
City
Holding
Company 10 days following
10% acquisition or
10 business days
following tender
offer for 10%. $0.01 prior to the 10th day
following 10% Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to less
than 10%. Standard Standard
Cleveland
Cliffs Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
The
Clothestime,
Inc. 10 days following 20%
acquisition or
tender offer for 20% .01 prior to 20% acquisition
in or incase of
fair offer. Standard Standard
Coachmen
Industries,
Inc. 10 days following 20%
acquisition or 10 business
days following tender
or exchange offer. $0.01 prior to person or
group becoming
Acquiring Person. Standard Standard; Acquiror's Rights become void.
Cobe
Laboratories,
Inc. 10 days following 20%
acquisition or 10 business
days following
tender offer for 20%. $0.01 prior to the 10th
day following
Stock Acquisition
Date. Standard Standard; also triggered by 20% beneficial ownership.
Coeur d'Alene
Mines 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th
day following Stock
Acquisition Date; may
be reinstated if
Acquiror reduces beneficial
10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Coherent,
Inc. 10 days following 20%
acquisition or 10 business
days following
30% tender offer. $0.01 prior to the 10th day
following Stock Acquisition
Date; or in merger unrelated
to Acquiror; may be reinstated
if Acquiror reduces ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership or by
1% event; Acquiror's Rights become void.
Collins
Foods Inc. 10 days following 10%
acquisition or
tender offer of 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard.
Colorado
National
Bankshares,
Inc. 10 business days following
20% acquisition or tender
offer for 25% or 10%
acquisition by a person
or group the Board deems
"Adverse Person" to
the Company. $0.05 prior to the 10th
business day following
20% acquisition (or 10%
Acquisition by the
"Adverse Person"); may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard;
Acquiror
or "Adverse
Person's"
Rights
become
void. Standard; also triggered by 25% beneficial ownership;
Acquiror's Rights become void.
Combustion
Engineering 10 days following 20%
acquisition, tender offer
for 20%, or after a person
is declared to be an"Adverse
Person" to the Company. $0.01 prior to the 10th
day following
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership or an
"Adverse Person". Acquiror's Rights become void.
Comerica
Incorporated 10 days following 20%
acquisition or 10 business
days following tender
offer for 25%. $0.05 prior to 10 days
following the Stock
Acquisition Date;
may be reinstated if
Acquiror reduces beneficial
10% or less. Standard Standard; also triggered by 25% beneficial ownership.
Commerce
Bancshares,
Inc. 20% acquisition or 10 days
following tender
offer for 20%. $0.01 prior to 5 p.m. Kansas
City time on the first day of
a 20% acquisition, and may be
reinstated if the Acquiror
reduces beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Commercial
Federal
Corporation 25% acquisition or
tender offer for 25%. $0.01 prior to 25%
acquisition. Standard Standard
Commercial
Intertech
Corp. Following 20% acquisition
without Company's consent
or 10 days following
tender offer for 20%. $0.01 prior to Stock
Acquisition Date or following
subscription period expiration
if Acquiror owns less
than 20%. Standard;
except in
case of
Permitted
Offer. Standard; also triggered by 20% beneficial ownership.
Commonwealth
Bancshares
Corp 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date (or 20%
Acquisition); may be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Community
Banks Inc. 10 days following 15%
acquisition or
tender offer for 15%. $0.001 prior to Stock
Acquisition Date. Standard Standard
Community
Bank Shares 10 days following 15%
acquisition, 25% tender
offer or following 10%
Adverse Person
declaration. $0.01 prior to the
Distribution Date. Standard Standard; same triggers as for distribution for rights.
Comp USA 10 days following
20% acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 20% beneficial ownership
Compaq
Computer
Corporation 20% acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard
Computer
Horizons,
Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to
acquisition date. Standard Standard; Acquiror's Rights become void.
Computer
Products, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 20%
acquisition Standard Standard; also triggered by 30% beneficial ownership or 1%
event. Acquiror's Rights become void.
Computer
Task
Group, Inc. The day of a 20%
acquisition or 10 days
following a tender
offer for 20%. $0.01 prior to the
Distribution Date. Standard Standard
Comstock
Resources Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
ConAgra, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.05 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Concurrent
Computer 10 days following 20%
acquisition or 10 business
days following
30% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 20% beneficial ownership.
Concurrent
Computer Corp. 10 days following 30%
acquisition or
tender offer for 30% $0.0025 prior to 30%
acquisition in or in
case of fair offer. Standard Standard
Consolidated
Capital
Income
Trust 10 days following 20%
acquisition, tender offer
for 20% or "Adverse Person"
declared $0.01 prior to 20%
acquisition or "Adverse
Person" declared Standard Standard
Consolidated
Capital
Realty
Investors 10 days following 20%
acquisition, tender offer
for 20%, or declaration of
an "Adverse Person" $0.01 prior to 20%
acquisition or
determination of an
"Adverse Person" Standard Standard
Consolidated
Capital
Special
Trust 10 days following 20%
acquisition, tender offer
for 20%, or declaration of
an "Adverse Person" $0.01 prior to 20%
acquisition or
determination of an
"Adverse Person" Standard Standard
Consolidated
Rail Corp. 10 days following 10%
acquisition or
tender offer of 10%. $0.01 prior to
acquisition. Standard Standard; also triggered by 1% event.
Consolidated
Stores Corp. 10 business days following
20% acquisition or
tender offer. $0.01 prior to the 10th
business day following
Stock Acquisition
Date. Standard Standard; also triggered by 20% acquisition.
Constellation
Bancorp. 10 days following 10%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Contel
Corporation 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th
day following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
Continental
Bank Corp. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to the 15%
Stock Acquisition Date;
may be reinstated if
Beneficial Ownership fall
below 15%.
Continental
Medical
Systems Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.001 prior to Stock
Acquisition Date. Standard Standard
Cooker
Restaurant
Corp. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Cooper
LaserSonics,
Inc. 10 days following 20%
acquisition or 10 business
days following
30% offer. $0.05 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Copley
Properties
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date (or 20%
Acquisition); may be reinstated
if Beneficial Ownership falls
below 10%. Standard Standard
Corporate
Software
Incorporated 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership.
Costco
Wholesale
Corporation 10 days following 10%
acquisition or
tender offer of 10% $0.01 prior to
acquisition Standard Standard
Countrywide
Credit
Corporation 20% acquisition or 10 days
following 20%
tender offer. $0.01 prior to 20%
acquisition and under
certain circumstances
thereafter. Standard Standard
Crane Co. 10 days following 20 %
acquisition or 10 business
days following
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Cray
Research Inc. 10 days following 20%
acquisition of
tender offer for 20%. $0.01 prior to 10th day
following acquisition or
prior to final
expiration date. Standard Standard; also triggered by 20% beneficial owner.
Credo
Petroleum
Corporation 20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition Standard Standard
Crestar
Financial
Corporation 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to 10th day
following
acquisition. Standard Standard; Acquiror's Rights became void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Crompton &
Knowles
Corporation 07/20/88 MA 1/100th share of Series
A Junior Participating
Preferred Stock 33.50 150 4.48 10
Cronus
Industries,
Inc. 01/22/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 13.50 50 3.70 10
Cucos, Inc. 12/20/89 LA 1 share of Common Stock 1.88 6.00 3.19 10
Cullen/Frost
Bankers, Inc. 07/25/89 TX 1/100th share of Junior
Participating
Preferred Stock. 16.625 60 3.61 10
Cumberland
Federal
Bancorp Inc. 02/26/91 KY 1/100th share of
Preferred Stock. 9.50 31 3.26 10
Cycare
Systems, Inc. 05/11/89 DE 1/100th share of Series
B Junior Participating
Preferred Stock 7.0 200 28.57 10
Cyprus
Minerals
Company 02/23/89 DE 2/300th share of Series
A Junior Participating
Preferred Stock 39.88 140 3.51 10
DFSouth-
eastern, Inc. 09/19/89 GA 1/100th share of junior
Participating
Preferred Stock 19.13 70 3.66 10
DPL Inc. 10/03/91 OH 1/100th share of
Preferred Stock 25.38 66.00 2.60 10
Dr. Pepper/
Seven-Up
Companies Inc. 09/02/93 DE 1/1000th share of
Preferred Stock 19.25 90.00 4.68 10
Damon
Corporation 04/22/88 DE 1/100th share of Class
B Junior Common Stock 25. 75 100 3.88 10
Daniel
Industries
Inc. 5/31/90 DE 1/100th share of Series
A Junior Participating
Preferred Stock 15.75 60 3.81 10
Data I/O
Corporation 04/04/88 WA 1/100th share of Series
A Junior Participating
Preferred Stock 6.13 35 5.71 10
Data Switch
Corporation 06/21/88 DE One right to each ten
Common Shares. Each right
entitles holder to purchase
one share of Common
Stock. 8.13 16 1.97 10
Dataproducts 05/02/88 DE 1/100th share of Series
A Junior Preferred Stock 9.88 45 4.56 10
DataScope 05/22/91 DE 1/1000th share of
Preferred Stock 63.50 300 4.72 10
Datron
Systems Inc. 08/21/90 DE 1/100th share of
Common Stock 8.5 0.325 .04 10
Davis Water &
Waste
Industries 12/21/89 GA One share of Common
Stock 12.63 20% of
current
market
price as
of date
of an-
nounce-
ment of
Acquir-
ing Person 5 10
Davstar
Industries
Ltd. 06/29/93 ON 1/100 share of
Preferred Stock 6.75 200 29.63 10
Dayton
Hudson
Corporation 03/11/92 MN 1/100th share of
Preferred Stock 66.875 150.00 2.24 4
Dean Foods 07/28/88 DE 1/100th share of
Preferred Stock 25.88 85 3.28 10
Del Webb
Corporation 07/19/88 AZ Primary: See Flip-In
Provisions Secondary:
1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 14.75 40 2.71 10
Delchamps,
Inc. 10/17/88 AL 1/100th share of Series
A Junior Participating
Preferred Stock 26.75 70 2.62 10
Dennison
Manufacturing
Co. 05/24/90 NV 1 share of Common Stock 19.25 80 4.16 10
Desoto, Inc. 02/20/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 48.25 140 2.90 10
Detrex Corp. 05/04/90 MI 1/100th share of Series
A Preferred Stock. 19.50 80 4.10 10
Diagnostek
Inc. 12/31/92 DE 1/100th Share of
Preferred Stock 8.25 40 4.8 10
Diebold,
Incorporated 02/10/89 OH 1/100th share of Cumulative
Redeemable Serial
Preferred Shares. 43.25 130 3.01 10
Digilog Inc. 06/01/88 DE 1 share of Common Stock 4.75 18 3.79 10
Digital
Communications
Associates
Inc. 05/18/90 GA 1 share of Common Stock 23.13 100 4.32 10
Digital
Equipment
Corp. 12/11/89 MA 1 share of Common Stock 85.00 400 4.71 10
Digital
Microwave
Corp. 10/24/91 DE 1/100th share of
Preferred Stock 9.50 50.00 5.26 10
Dionex Corp. 06/27/89 DE 1 share or Common Stock 18.75 100 5.33 10
Diversified
Energies 11/08/89 MN 1/100th share of Junior
Participating
Preferred Stock 33.38 95 2.85 10
Dofasco, Inc. 11/27/89 ON 1 share of Common Stock 25.00 100 4.00 10
Donaldson
Company, Inc. 05/19/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 18.875 85 4.50 10
Dresher, Inc. 02/03/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 5.63 25 4.44 10
Dresser
Industries 08/16/90 DE 1/100th share of
Preferred Stock 25.81 90.00 3.49 10
Ducommon
Incorporated 05/25/88 DE Primary: See Flip-In
Provisions
Secondary: 1/100th share
of Series A Junior
Participating Cumulative
Preferred Stock 3.38 14.5 4.30 3
Dunkin'
Donuts
Incorporated 04/20/89 DE 1/100th share of Series
A Participating
Preferred Stock 37.875 90 2.376 10
Duplex
Products Inc. 06/08/89 DE 1/100th share of Series
A Preferred Stock 20.75 80 3.86 10
Duramed
Pharmaceuticals,
Inc. 08/16/88 DE 1/100th share of Series
A Preferred Stock 3.88 80 20.62 10
Durham
Corporation 09/13/88 NC 1 share of Common Stock 32.50 90 2.77 10
Dycom
Industries,
Inc. 08/01/92 FL 1/2 share of Common
Stock 4.75 18.00 3.79 10
Dynamics
Research
Corporation 07/14/88 MA 1/10th share of Series
A Participating
Preferred Stock 7.75 40 5.16 10
Dynatech Corp. 02/16/89 MA 1/2000th share of Junior
Participating Cumulative
Preferred Stock. 18.75 100 5.33 10
E'Town Corp. 01/24/91 NJ 1/100th share of
Common Stock 24.50 80.00 3.27 11
Eagle
Bancshares
Inc. 05/17/93 GA 1 share of Common Stock 16.75 35.00 2.09 10
Eastchester
Financial 10/04/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 14.13 42 2.97 10
Eastern
Company 09/16/91 CT 1 share of Common Stock 11.25 35 3.11 10
Eastern
Enterprises 02/22/90 MA 1 share of Common Stock 30.38 100 3.29 10
Echlin Inc. 06/21/89 CT 1/100th share Series A
Cumulative Participating
Preferred Stock. 16.875 65 3.85 10
Edison
Brothers
Stores, Inc. 01/26/88 DE 1 share of Common Stock 26.00 85 3.27 10
Education
Alternatives
Inc. 09/16/93 MN 1/100th share of
Preferred Stock 34.25 175.00 5.11 10
El Paso
Electric Co. 09/05/90 TX 1 share of Common Stock 5.85 25.00 4.27 10
Elco
Industries
Inc. 01/19/88 DE 1 share of Common Stock 24.75 80 3.23 10
Elcor
Corporation 06/28/88 DE 1/100th share of Series
A Preferred Stock 7.00 50 7.14 10
Electro
Scientific
Industries
Inc. 05/15/89 OR 1/100th share of Series
A No Par
Preferred Stock 12.375 55 4.44 10
Electromagnetic
Sciences, Inc. 3/27/89 NV 1 share Common Stock 6.88 30 4.36 10
Electronic
Associates,
Inc. 02/10/88 NJ 1/100th share of Series
A Junior Participating
Preferred Stock 3.50 11 3.14 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Crompton &
Knowles
Corporation 10 days following 20%
acquisition or 10 business
days following
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Cronus
Industries,
Inc. 15 days following 20%
acquisition or
30% tender offer. $0.01 prior to 15 days
following 20%
acquisition. Standard Standard
Cucos, Inc. 10 days following 30%
acquisition or 10 business
days following a
30% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date: may be reinstated if
Acquiror reduces ownership
to 10%. Standard Standard
Cullen/Frost
Bankers, Inc. 10 days following
tender offer for 15%. $0.01 prior to
acquisition. Standard Standard
Cumberland
Federal
Bancorp Inc. 10 days following 20%
acquisition or 10 days
following 30%
tender offer. $0.01 prior to 10th day
following 10% Stock Acquisition
Date: may be reinstated if
Acquiror reduces ownership
to 10% Standard Standard
Cycare
Systems, Inc. 10 days following 20%
acquisitions or tender
offer of 35%, or after an
"Adverse Person" is
determined. $0.01 prior to 10th day
following Distribution
Date. Standard Standard; Acquiror's Rights become void.
Cyprus
Minerals
Company 10 days following 10%
acquisition or
tender offer for 10%. $0.0067 prior to 20%
acquisition. Standard Standard; also triggered by 10% beneficial ownership or 1%
event. Acquiror's Rights become void.
DFSouth-
eastern, Inc. 15% acquisition or
tender offer for 15%. $0.01 prior to 15%
acquisition. Standard Standard
DPL Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Dr. Pepper/
Seven-Up
Companies Inc. 10 business days
following 10%
acquisition $0.01 prior to
acquisition. Standard Standard; triggered by 10% beneficial ownership.
Damon
Corporation 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to time there
is an Acquiring
Person. Standard Standard; Acquiror's rights become void.
Daniel
Industries
Inc. 10 business days following
20% acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 10th day
following date person named
Acquiring Person. Standard Standard
Data I/O
Corporation 20 calendar days following
20% acquisition or
tender offer for 30% $0.05 prior to the 20th
calendar day following
the Stock Acquisition
Date. Standard Standard; also triggered by 40% beneficial ownership.
Data Switch
Corporation 40% acquisition or
tender offer for 40%. $0.01 prior to Triggering
Event. Right to
receive
voting
securities
of
Acquiror
at a
value
equal to
four
times
the then
market
price of
the Com-
mon shares
for the
exercise
price of
the Right. Right to receive Common Shares of the Company at a value
equal to four times the then current market price of the
shares for the exercise price of the Right.
Dataproducts 10 days following 20%
acquisition of
30% tender offer. $0.01 prior to Stock
Acquisition Date; may
be reinstated if Acquiror
reduces ownership
to 10%. Standard Standard; triggered by 30% beneficial ownership or 1%
event.
DataScope 10 days following 15%
acquisition or
15% tender offer. $0.01 prior to Stock
Acquisition Date. Standard Standard
Datron
Systems Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Davis Water
& Waste
Industries 20 days following 10%
acquisition
or tender offer. 0.01 prior to 20 days
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
to 10%. Standard;
number of
shares
received
upon
exercise
based on
relative
prices of
Acquiror's
and target's
market
prices. Standard; also triggered by beneficial ownership over 10%;
number of shares received upon exercise based on relative
shares outstanding to Acquiror's ownership.
Davstar
Industries
Ltd. 10 days following 20%
acquisition or
tender offer of 35%. $0.01 prior to
acquisition Standard Standard
Dayton
Hudson
Corporation 10 days following 20%
acquisition or
tender offer for 20% $.05 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Dean Foods 10 days following 15%
acquisition or
tender offer $0.05 prior to Stock
Acquisition Date Standard Standard; also triggered by 15% acquisition or by 1% event.
Del Webb
Corporation Primary Rights: 10 business
days following 15% acquisition.
Secondary Rights: announcement
of 25% acquisition or
tender offer for 25%. $0.05 prior to the 10th
business day following 15%
acquisition for Primary
Rights and prior to 25%
acquisition for Secondary
Rights. Primary:
None
Secondary:
Standard;
Acquiror's
Rights
become
Void. Primary: purchase a number of Common Shares equal to 50%
number of Common Shares outstanding divided by number of
exercisable Primary Rights outstanding at a price equal to
20% of market value. Secondary: Standard; also triggered
by beneficial ownership of 25%; Acquiror's Rights become
void.
Delchamps,
Inc. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership or 1%
event. Acquiror's Rights become void.
Dennison
Manufacturing
Co. 10 days following 10%
acquisition or 10 business
days following
10% tender offer. $0.01 prior to 10% beneficial
ownership. Standard Standard; also triggered by 10% beneficial ownership.
Desoto, Inc. 10 days following 20%
acquisition or
20% tender offer. $0.01 prior to 20%
acquisition Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
Detrex Corp. 10 business days following
15% acquisition or 10 business
days following
30% tender offer. $0.01 prior to 10th business
day following stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership or 1%
event.
Diagnostek
Inc. 10 days following
20% acquisition. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Diebold,
Incorporated 20 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
Digilog Inc. Rights are exercisable
at the earlier of the
Initial Exercisability
Date or Trigger Date (see
footnote (s)). $0.01 prior to Triggering
Events. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 30%;
Acquiror's Rights become void.
Digital
Communications
Associates
Inc. 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date. May be reinstated if
an Acquiring Person reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by Acquiring person w/20%
ownership unless deemed a "permitted offer".
Digital
Equipment
Corp. 10 days following 20%
acquisition or 10 business
days following 30% tender
offer or following 10% Adverse
Person declaration. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
below 10%. Standard Standard; triggered by Adverse person declaration, 25%
beneficial ownership, or 1% event.
Digital
Microwave
Corp. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Dionex Corp. 10 days following 20%
acquisition or
tender offer. $0.01 prior to 20th day
following 20% acquisition;
can be redeemed by
Qualified Offer. Standard Triggered 10 days following 20% beneficial ownership.
Diversified
Energies 15 days following 20%
acquisition or
tender offer. $0.01 prior to 20 days
following announcement
of Acquiring Person
provided control of
Board has not
changed. Standard Triggered by 20% beneficial ownership unless there is a
Qualified Offer.
Dofasco, Inc. 10 days following 10%
acquisition or
tender offer. $0.01 prior to any
triggering event. Standard Standard; also triggered by 10% beneficial ownership except
in case of permitted bid.
Donaldson
Company, Inc. 15 days following 20%
acquisition or
tender offer for 30% $0.10 within 15 days
of acquisition Standard Standard; also triggered by 20% beneficial ownership.
Dresher, Inc. 10 days following 20%
acquisition or 10 business
days following
30% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces beneficial
ownership to 10% or less, or
Board approves a merger
unrelated to
Acquiror. Standard Standard; triggered by 25% beneficial ownership or by 1%
event.
Dresser
Industries 10 days following 15%
acquisition or
tender offer for 15%. None. Standard Standard
Ducommon
Incorporated Primary Rights: 10 business
days following
17% acquisition.
Secondary Rights: Immediately
following 25% acquisition
or tender offer for 25%. $0.01 prior to the 10th
business day following
17% acquisition for Primary
Rights and prior to 25%
acquisition for
Secondary Rights. Primary:
None.
Secondary:
Standard;
Acquiror's
Rights
become
void. Primary: Purchase a number of common shares equal to 50%
number of Common Shares outstanding divided by number of
exercisable Primary Rights outstanding at a price equal to
20% of market value. Secondary: Standard; also triggered
by beneficial ownership of 25%; Acquiror's rights become
void.
Dunkin'
Donuts
Incorporated 10 days following 20%
acquisition or
tender offer for 30% $0.01 prior to 15 days
following Stock
Acquisition Date Standard Standard; also triggered by 15% beneficial ownership.
Duplex
Products Inc. 15 days following 25%
acquisition or
tender offer for 25%. $0.05 prior to 15th day
following
acquisition. Standard Standard; also triggered by 30% beneficial ownership or 1%
event.
Duramed
Pharmaceuticals,
Inc. 20 days following 20%
acquisition; 20 business
days following tender offer
for 30% or 20 business days
following Board declaration of
an "Adverse Person." $0.001 prior to 20 days
following the Stock
Acquisition Date, but
may not redeem the Rights
if the Board has declared
an "Adverse Person."
May be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Durham
Corporation 10 days following 35%
acquisition or 10 days
following tender
offer for 30%. $0.01 prior to the 10th day
following the Share Acquisition
Date and may be reinstated if
Acquiror reduces beneficial
ownership to 25%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Dycom
Industries,
Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Dynamics
Research
Corporation 10 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to the
Expiration Date by
2/3 majority vote of
Continuing
Directors. Standard;
Acquiror's
Rights
become
void. Standard; Acquiror's Rights become void.
Dynatech Corp. 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.02 prior to 10th day
following Stock
Acquisition Date. Standard. Standard; also triggered by 20% beneficial ownership.
E'Town Corp. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Eagle
Bancshares
Inc. 10 business days following
15% acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 15% beneficial ownership.
Eastchester
Financial 10 business days following
20% acquisition or
tender offer. $0.01 prior to Stock
Acquisition Date or
in case of
fair offer Standard Standard; also triggered by 20% beneficial Ownership.
Eastern
Company 10 days following 10%
acquisition of
10% tender offer. $0.01 prior to 10%
Stock Acquisition
Date. Standard Standard
Eastern
Enterprises 20% acquisition or
determination by Board of
an "Adverse Person" with
10% ownership. $0.01 prior to 10th day
following Stock Acquisition
Date. Standard Standard; triggered by 10% ownership of an "Adverse
Person".
Echlin Inc. 10 days following 20%
acquisition or
tender offer. $0.01 prior to 10th day
following
acquisition. Standard Standard; Acquiror's Rights become void.
Edison
Brothers
Stores, Inc. Acquisition of 50% voting
power on the 10th day
following tender offer. $0.05 prior to the 10th
business day following
50% acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Education
Alternatives
Inc. 10 business days following
20% acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 20% beneficial ownership.
El Paso
Electric Co. 10 days following 15%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date (or 15%
Acquisition); may be reinstated
if Beneficial Ownership falls
below 5%. Standard Standard
Elco
Industries
Inc. 10 days following 20%
acquisition or
30% tender offer. $0.05 prior to 15 days
following 20% acquisition; may be
reinstated if Acquiror reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by 33% beneficial ownership.
Elcor
Corporation 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th day
following 20% acquisition;
may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 30%
Acquiror's Rights become void.
Electro
Scientific
Industries
Inc. 10 days following 20%
acquisition, tender offer
for 20%, or "Adverse
Person" declared $0.01 prior to determination
of "Adverse Person" or 10 days
following Stock
Acquisition Date. Standard Standard
Electromagnetic
Sciences, Inc. 20% acquisition or
tender offer for 20%. $0.01 prior to Expiration
Date. Standard Standard
Electronic
Associates,
Inc. 10 days following 10%
acquisition or
tender offer. $0.01 prior to 10%
acquisition. After the
Acquisition Date, Board
may exchange one share of
Common Stock for
each Right. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Eli Lily
and Company 07/18/88 IN 1/100th share of Series
A Participating
Preferred Stock. 84.50 325 3.84 10
Emerson
Electric Co. 11/1/88 MO 1/100th share of Series
A Junior Participating
Preferred Stock. 30.50 120 3.93 10
Empire
Banc Corp 12/19/90 DE 1/100th share of
Preferred Stock NA 50.00 NA 10
Empire
District
Electric Co. 07/26/90 KS 1/100th share of
Preferred Stock 29.38 75.00 2.55 10
Emulex Corp. 01/19/89 CA 1/100th share of Junior
Participating
Preferred Stock. 11.00 50 4.55 10
Endevco, Inc. 10/6/88 DE 1 share of Common Stock 6.13 30 4.89 10
Energas
Company 04/28/88 TX 1 share of Common Stock 15.75 45 2.86 10
Energen
Corporation 07/27/88 AL 1/100th share of Series
A Junior Participating
Preferred Stock. 22.38 80 3.42 10
EnergyNorth
Inc. 06/06/90 NH 1 share of Common Stock 17.48 48.00 2.75 10
Enex
Resources
Corp. 09/04/90 CO 1 share of Common Stock 4.00 12.00 3.00 10
Engraph, Inc. 09/01/88 DE 1/100th share of Series
A Participating
Preferred Stock 11.40 50 4.39 10
Equitable of
Iowa Companies 04/30/ 92 IA 1 share of Common Stock 28.25 125.00 4.42 10
Eskimo
Pie
Corporation 01/21/93 DE 1/100th Share of
Preferred Stock 22.00 75 3.4 10
Esterline
Technologies
Corp. 12/09/93 DE 1/100th Share of
Preferred Stock 11.13 56 5.0 10
Exabyte Corp. 01/24/91 DE 1/100th share of
Preferred Stock 17.13 70.00 4.09 11
Excel
Bancorp Inc. 10/25/90 DE 1/100th share of
Preferred Stock 3.00 26.00 8.66 10
FHP
International
Corp. 06/08/90 DE 1/4 share of Common
Stock. 16.36 20 1.22 10
F.W.
Woolworth Co. 04/04/88 NY 1/100th share of Series
B Participating
Preferred Stock 54.13 200 3.69 10
Fab
Industries
Inc. 05/10/ 90 DE 1 share of Common Stock 34.50 120.00 3.49 10
Fabricland
Inc. 01/21/91 OR 1 share of Common Stock 13.63 60.00 4.40 10
Fabri-Centers
of America,
Inc. 10/22/90 OH 1 share of Common Stock 10.83 105.75 9.76 10
Facet
Enterprises,
Inc. 03/21/88 DE 1/100th share of Series
A Participating
Preferred Stock 29.13 90 3.09 10
Fairchild
Industries
Inc. 01/21/89 DE 1/100th share of Series
B Participating
Preferred Stock 16.13 45 2.79 10
Falconbridge,
Ltd. 08/01/89 ON 1 share of Common Stock NA 100
(Can.) NA 10
Farmers
Group, Inc. 06/23/88 NV 1 share of Common Stock 56.88 160 2.81 10
Farr Company 04/03/89 DE 1/2 share of Common
Stock 10.250 40 3.90 10
Federal
Industries
Ltd. 02/16/90 WIN 1 share of Class A
Common Stock NA 45
(cdn) NA 10
Federal
Realty
Investment
Trust 04/13/89 DC 1 share Common Stock 23.00 65 2.83 10
Federal
Signal
Corporation 06/24/88 DE 1/100th share of Series
A Preferred Stock 22.13 90 4.01 10
Ferro
Corporation 04/03/89 OH 1 share of Common Stock 44.375 90 2.03 10
Ferrofluidics
Corp. 08/03/94 ME 1/1,000th of Preferred 5.25 25.00 4.76 10
Fibreboard
Corporation 08/25/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 10.63 35 3.29 10
Fidata
Corporation 0/9/29/88 DE 1/100th share of Series
A Preferred Stock 8.25 23 2.79 10
Finnigan Inc. 03/01/89 VA 1/100th share of Series
A Participating
Preferred Stock. 16.75 90 5.37 10
The Firestone
Tire &
Rubber
Company 02/16/88 OH 1/100th share of Serial
Series A Preferred Stock 35.75 .01 NM 5
First of
America
Bank Corp. 07/18/90 MI 1/100th share of
Preferred Stock 23.75 190 8.00 10
First Bank
System, Inc. 12/22/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 19.75 80 4.05 10
- 71 -<PAGE>
First City
Bancorp Inc. 08/24/90 TN 1/100th share of
Preferred Stock 18.00 20 1.11 10
First
Commercial
Corp. 01/08/91 AR NA NA NA NA NA
First
Eastern Corp. 05/17/89 PA 1/100th of share of series
of newly created
preferred stock 34.50 120 3.48 10
First
Essex
Bancorp 10/12/89 DE 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 7.88 28 3.55 10
First
Fidelity
Bancor-
poration 08/17/89 NJ 1/100th share of Series
E Junior Participating
Preferred Stock 33.50 130 3.88 10
First
Interstate
Bancorp 11/21/88 DE 1 share of Common Stock 46.75 170 3.64 10
First
Interstate of
Iowa, Inc. 07/11/91 IA 1/100th share of
Preferred Stock 5.63 11 1.95 10
First Inter-
Bancorp Inc. 12/20/90 DE 1/100th share of
Preferred Stock 26.00 25 0.96 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Eli Lily
and Company 10 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to the 10th
business day following
20% acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Emerson
Electric Co. 10 days following 20%
acquisition or 10 days
following 20%
tender offer $0.01 prior to 20%
acquisition Standard Standard; also triggered by 1% event.
Empire
Banc Corp 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date (or
20% Acquisition); may be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Empire
District
Electric Co. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock Acquisition
Date. Standard Standard
Emulex Corp. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10th day
following Stock Acquisition
date; may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 30% beneficial ownership or by
1% event; Acquiror's Rights become void.
Endevco, Inc. 20% acquisition or
25% tender offer $0.01 prior to 10 days
following 20%
acquisition Standard Standard; also triggered by 20% beneficial ownership or 1%
event.
Energas
Company 10 days following 20%
acquisition, tender offer
for 30%, or upon determina-
tion by Board of an
"Adverse Person" holding
in excess of 10%. $0.05 prior to the 10th day
following the Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership;
Acquiror's Rights become void.
Energen
Corporation 10 days following 20%
acquisition or 10 business
days following tender offer
for 30% or promptly after
Board determination of an
"Adverse Person" with
10% acquisition. $0.02 prior to the 10th day
following 20% acquisition;
may be reinstated if
acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 30% (10%
or more for an "Adverse Person"); Acquiror's Rights become
void.
EnergyNorth
Inc. 10 days following 10%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date (or 10%
Acquisition); may be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Enex
Resources
Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Engraph, Inc. 20% acquisition or the
10th day after a tender
offer or exchange offer
which would result in any
person or group becoming
an Acquiring Person. $0.01 prior to a person
becoming an Acquiring
Person or expiration
of the Rights. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by a 20% beneficial ownership.
Acquiror's Rights become void.
Equitable of
Iowa Companies 10 days following 25%
acquisition or
tender offer for 25% $0.01 prior to 25%
acquisition in or
in case of fair
offer. Standard Standard
Eskimo Pie
Corporation 10 days following 20%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Esterline
Technologies
Corp. 10 days following 10%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by beneficial ownership of 10%;
Acquiror's Rights become void.
Exabyte Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Excel
Bancorp Inc. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
FHP
International
Corp. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
F.W.
Woolworth Co. 10 business days following
20% acquisition, tender offer
for 30% or based on Board
determination of a
15% acquisition. $0.05 prior to 10 business
days following Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership;
Acquiror's rights become void.
Fab
Industries
Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
Fabricland
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Fabri-Centers
of America,
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
Facet
Enterprises,
Inc. The earliest to occur of
20% acquisition or tender
offer, or 04/04/88 if PRS
Acquisition, Inc. tender
offer has not
been terminated. $0.01 prior to 20% acquisition
and thereafter under certain
circumstances, but Right
holder may exercise Rights
until 10 business days after
notice of redemption if
Triggering Event has
occurred. Standard Standard; also triggered by 20% beneficial ownership.
Fairchild
Industries
Inc. The day of a 20% acquisition
or ten days following a
tender for 20% $0.01 prior to a 20%
acquisition Standard Standard; Acquiror's Rights become void.
Falconbridge,
Ltd. 8 business days following
15% acquisition or
tender offer for 15% $0.01 prior to
acquisition Standard Standard
Farmers
Group, Inc. 10 business days following
20% acquisition. $0.05 prior to the time
there is an Acquiring
Person. Standard Standard; also triggered by 20% beneficial ownership.
Farr Company 10 days following 20%
acquisition of
tender offer for 30%. $0.01 prior to 10 business
days after acquisition
announcement Standard Standard
Federal
Industries
Ltd. 20% acquisition or
20% tender offer. $0.001 anytime prior to
Flip-in event. Standard Standard; also triggered by 20% beneficial ownership.
Federal
Realty
Investment
Trust 20% acquisition announce-
ment or 10 days following
tender offer. $0.01 prior to acquisition
or expiration of the
Rights Standard Standard
Federal
Signal
Corporation 10 days following 20%
acquisition or
tender offer of 30%. $0.10 prior to 20 days
following the 20%
acquisition. Standard Standard; Acquiror's Rights become void.
Ferro
Corporation 10 days following 20%
acquisition, tender offer
for 20%, or "Adverse
Person" declared $0.05 prior to fifteen days
following Stock Acquisition
Date. Standard Standard; also triggered by 20% beneficial ownership.
Ferrofluidics
Corp. 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 15% beneficial ownership
Fibreboard
Corporation 10 days following a 20%
acquisition or 10 days
business days following
tender offer for 20%. $0.01 prior to a 20%
acquisition. Board may
exchange Rights at a ratio
of 1 Common Share or 1/100th
Preferred Share per Right
between the points of 25%
and 50%
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Acquiror's Rights become void.
Fidata
Corporation 10 days following 20%
acquisition or 10 days
following tender
offer for 30%. $0.01 prior to the 10th
day following the Stock
Acquisition Date and may
be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership or a
1% event. Acquiror's Rights become void.
Finnigan Inc. 10 days following 30%
acquisition or 10 business
days following
30% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; triggered by 35% beneficial ownership or by 1%
event.
The Firestone
Tire &
Rubber
Company 10 days following 20%
acquisition or
tender offer. $0.05 prior to the 11th day
following the Stock
Acquisition Date. None None
First of
America
Bank Corp. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock
Acquisition Date; can
be reinstated if Beneficial
Ownership falls
below 5%. Standard Standard
First
Bank
System, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
First City
Bancorp Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
First
Commercial
Corp. NA NA NA NA
First
Eastern Corp. 10 days following 15%
acquisition of
tender offer for 20%. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
First
Essex Bancorp 10 days following 20%
acquisition, 10 business
days following 20%
tender offer, or "Adverse
Person" declaration. $0.02 prior to Adverse
Person declaration, or 10th
day following Stock
Acquisition Date, or Merger
Right event. Standard Standard; also triggered by "Adverse Person" declaration.
First
Fidelity
Bancorporation 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to 10%
acquisition. Standard Standard
First
Interstate
Bancorp 10 days following 20%
acquisition or
tender offer for 20%. $0.001 prior to 10th day
following 20%
acquisition. Standard Standard, Acquiror's Rights become void.
First
Interstate
of Iowa,
Inc. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard
First Inter-
Bancorp Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
First
Michigan
Bank Corp. 10/11/90 MI 1/100th share of
Preferred Stock 11.75 50 4.26 10
First
Midwest
Bancorp 02/15/89 DE 1/100th share of Series
A Preferred Stock 16.50 75 4.55 10
First New
York
Business Bank 10/25/89 DE 1 share of Common Stock 11.25 60 5.33 10
First
Union Corp. 12/18/90 NC 1 share of Common Stock 17.00 80 4.71 10
First
Union Real
Estate Equity 03/30/90 OH 1 share of Common Stock 17.38 50 2.88 10
First
Virginia
Banks, Inc. 07/27/88 VA 1/100th share of Series
E Participating
Preferred Stock 25.88 90 3.48 10
Firstier
Financial Inc. 02/17/92 DE 1/1000th share of
Preferred Stock 30.00 190.00 6.33 10
Flagship
Financial
Corp. 10/26/89 PA 1/100th share of Series
A Junior Participating
Preferred Stock 15.88 60 3.78 10
Fleet/Norstar
Financial
Group, Inc. 11/21/90 RI 1/100th share of
Preferred Stock 10.13 50 4.94 10
Fleming
Companies,
Inc. 08/22/89 OK 1 share of Common Stock 34.75 150 4.32 10
Floating
Point
Systems, Inc. 06/30/88 OR 1 share of Common Stock 3.00 15 5.00 10
Florida
Progress
Corp. 11/21/91 FL 1/100th share of
Preferred Stock 45.25 130.00 2.60 10
Flow
General Inc. 06/30/89 DE 1 share of Common Stock 5.75 30 5.22 6
Flow
International
Corp. 06/07/90 DE 1/100th share of
Preferred Stock 4.13 15 3.63 10
Flowers
Industries,
Inc. 03/17/89 GA 1/100th share of Series
A Junior Participating
Preferred Stock 16.88 75 4.44 10
Fluorocarbon
Company 03/21/89 CA 1/4th share of
Common Stock 13.00 55 4.23 10
Foremost
Corporation of
America 12/14/89 DE 1/100th share of
Common Stock 33.75 110 3.26 10
Forest
Laboratories,
Inc. 02/18/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 17.00 60 3.53 10
Foundation
Health Corp. 09/27/91 DE 1/1000th share
Preferred Stock 25.13 105 4.18 10
The
Foxboro
Company 04/05/88 MA 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 30.13 125 4.15 10
Franklin
Electric Co.,
Inc. 02/11/90 IN 1/100th share of
Preferred Stock 11.25 50 4.44 10
Franklin
First
Financial
Corp. 05/16/91 PA 1/100th share of
Preferred Stock 9.88 50 5.06 10
GAINSCO, Inc. 03/03/88 TX 1 share of Common Stock 5.13 20 3.90 10
GTE
Corporation 12/07/89 NY 1/1000th share of Series
A Junior Participating
Preferred Stock 68.50 200 2.92 10
Gamma
Biologicals,
Inc. 09/05/90 TX 1 share of Common Stock 2.875 15 5.22 10
Gamma
Biologicals,
Inc. 09/21/90 TX 1 share of Common Stock 2.75 15 5.45 10
Gannett Inc. 05/21/90 DE 1/200th share of
Preferred Stock 37.38 150 4.01 10
GardenAmerica
Corp. 03/03/88 DE 1/100th share of
Preference Stock 14.25 45 3.16 5
Genentech,
Inc. 04/21/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 32.50 150 4.62 10
General
Development
Corporation 02/17/89 DE 1/100th share Series B
Participating Cumulative
Preferred Stock 17.50 50 2.86 10
General
Dynamics
Corporation 02/1/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 50.00 180 3.60 10
General
Employment
Enterprises
Inc. 02/12/90 IL 1/100th share of Series
A Junior Participating
Preferred Stock 3.00 12 4.00 10
General
Housewares
Corporation 02/17/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 8.00 25 3.13 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
First
Michigan
Bank Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
First
Midwest
Bancorp 10 days following 15%
acquisition or
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
First New
York
Business Bank 10 days following 20%
acquisition or
30% tender offer. $0.01 prior to 10th day
following 20%
acquisition. Standard None
First
Union Corp. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
First Union
Real
Estate Equity 20 days following 15%
acquisition or 15%
tender offer.
"Adverse Person" $0.01 anytime prior to
triggering events. Standard Standard; also triggered by "Adverse Person", who must own at
least 9.8%, or 1% event.
First
Virginia
Banks, Inc. 20% acquisition or 10 days
following a tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Firstier
Financial
Inc. 10 days following 20%
acquisition or
tender offer for 20% $.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Flagship
Financial
Corp. 10 business days following
20% acquisition or
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Fleet/Norstar
Financial
Group, Inc. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Fleming
Companies,
Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.05 prior to 10 days
following 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%.
Floating
Point
Systems, Inc. Immediately following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 20% acquisi-
tion; may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Florida
Progress
Corp. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 10%
acquisition in or in case
of fair offer. Standard Standard
Flow
General Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.05 prior to 10th day
following
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Flow
International
Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date; or
20% Acquisition. Standard Standard
Flowers
Industries,
Inc. 10 days following 10%
acquisition or
tender offer for 30%. $0.001 prior to 10th day
following 10%
acquisition. Standard Standard; Acquiror's Rights become void.
Fluorocarbon
Company 10 business days following
20% acquisition or
30% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership except in
case of Qualified Offer.
Foremost
Corporation of
America 10 days following 20%
acquisition on 10 business
days following 20%
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership or by 1%
event.
Forest
Laboratories,
Inc. 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.001 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Right to
receive
2 1/2
times the
exercise
price of
the Right
in Common
Stock of
the
Acquiror. Right to receive 2 1/2 times exercise price of the Right in
Preferred Stock. Also triggered by 20% beneficial ownership.
Foundation
Health Corp. 10 days following 15%
acquisition or
15% tender offer. $0.01 prior to following
15% Stock Acquisition
Date Standard Standard
The Foxboro
Company 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to the 10th day
following the Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership.
Franklin
Electric Co.,
Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Franklin
First
Financial
Corp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
GAINSCO, Inc. 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10 days
following 20% acquisition;
may be reinstated if
Acquiror reduces beneficial
ownership to 10%
or less. Standard Exercise price reduced to 25% of then current Common Stock
market price. Also triggered by 20% beneficial ownership.
GTE
Corporation Following 20% acquisition
or 10 days following 20%
tender offer or following
10% acquisition and Permitted
Offer. Flip-over event. $0.01 prior to 10% acquisi-
tion or following expiration
of Flip-in Right if no person
owns 10%. Standard Standard; also triggered by 20% acquisition.
Gamma
Biologicals,
Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Gamma
Biologicals,
Inc. Standard $0.01 following
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Gannett Inc. 10 days following 15%
acquisition or 10 business
days following 15%
tender offer. $0.01 prior to 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
GardenAmerica
Corp. NA $0.01 under certain
circumstances. Standard,
with
condi-
tions. Standard, with conditions.
Genentech,
Inc. 10 days following 20%
acquisition or
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
General
Development
Corporation 10 days following 15%
acquisition or
tender offer for 20%. $0.01 prior to the 10th day
following 15%
acquisition. Standard Standard; Acquiror's Rights become void.
General
Dynamics
Corporation 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
General
Employment
Enterprises
Inc. 10 business days following 1
0% acquisition of "Voting Power"
or 20% tender offer of
"Voting Power". $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 10% beneficial ownership.
General
Housewares
Corporation 10 days following 21%
acquisition or
tender offer for 30%. $0.01 prior to 10th day
following 21%
acquisition. Standard Standard; also triggered by 21% beneficial ownership or 1%
event. Acquiror's Rights become void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
General
Instrument
Corporation 03/08/89 DE 1/100th share of Series
A Cumulative Participating
Preferred Stock 31.13 125 4.02 10
General
RE
Corporation 09/11/91 DE 1/100th share of
Preferred Stock 89.50 350 3.91 10
Genesco Inc. 08/08/90 TN 1/100th share of
Preferred Stock 4.63 20 4.32 10
The Genlyte
Group, Inc. 08/29/89 DE 1/100th share of Junior
Participating Cumulative
Preferred Stock 12.75 75 5.88 10
GenRad, Inc. 06/07/88 MA 1 share of Common Stock 10.75 50 4.65 10
Gentex Corp. 08/19/91 MI 1/100th share
Preferred Stock 9.13 45 4.93 10
Genus Inc. 04/27/90 CA 1 share of Common Stock 4.50 28 6.22 10
Genzyme
Corporation 03/15/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 9.50 52 5.47 10
GA Gulf
Corporation 07/07/89 DE 1 share of Junior
Participating
Preferred Stock 6.37 45 7.06 7
GA Pacific
Corporation 07/31/89 GA 1/100th share of Series
A Junior Preferred Stock 52.0 175 3.37 10
Gerber
Products Co. 07/25/90 MI 1/100th share of
Preferred Stock 57.13 180 3.15 10
Giddings &
Lewis Inc. 02/07/90 WI 1/100th share of Series
A Preferred Stock 16.38 45 2.75 10
Gleason
Corp. 06/06/89 DE 1/100th share of Junior
Participating
Preferred Stock NA 45 NA 10
Global
Natural
Resources Inc. 10/05/88 NJ 1/100th share of Series
B Junior Preferred Stock 5.63 20 3.55 10
Goody
Products 11/01/89 DE 1 share of Common Stock 13.00 65 5.00 10<PAGE>
Gordon
Jewelry
Corporation 08/10/88 DE 1/100th share of
Participating
Preferred Stock 16.50 60 3.64 10
Gould Inc. 05/03/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 13.38 40 2.99 10
Graco Inc. 05/09/90 MN 1/100th share of Series
A Junior Participating
Preferred Stock 21.50 80 3.72 10
Graham Corp. 02/23/90 DE 1 share of Common Stock 27.25 70 2.57 10
Great
Lakes
Chemical
Corp. 09/07/89 DE 1/10th share of
Common Stock and one Note
equal to 9/10ths of
current market price on
day of exercise 23.68 370 15.83 10
Great
Northern
Nekoosa
Corporation 10/05/88 ME 1/100th share of Series
A Junior Participating
Preferred Stock 40.13 150 3.74 10
Greenwich
Pharmaceuticals
Inc. 09/25/91 DE 1/100th share of
Preferred Stock 7.50 60.00 8.00 10
Grow
Group, Inc. 02/11/88 NY 1 share of Common Stock 7.75 30 3.87 10
Grubb &
Ellis Company 03/13/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 3.75 20 5.33 10
Grumman
Corporation 02/18/88 NY 1/100th share of Series
A Junior Participating
Preferred Stock 18.88 80 4.24 10
Guaranty
National
Corp. 12/20/91 CO 1/100th share of
Preferred Stock 13.63 60.00 4.40 10
Gulf+
Western Inc. 09/07/88 DE 1 share of Common Stock 41.25 200 4.85 10
Gullford
Mills Inc. 08/23/90 DE 1/100th share of
Preferred Stock 16.88 60 3.55 10
HBO &
Company 02/22/91 DE 1/1000th share of
Preferred Stock 6.88 35 5.09 10
H.F.
Ahmanson &
Company 07/26/88 DE Primary: see Flip-in
Provisions Secondary: 1/100th
share of Series A Junior
Participating Cumulative
Preferred Stock 15.13 60 3.97 10<PAGE>
H.M.S.S.,
Inc. 04/08/88 DE 1 share of Common Stock 16.50 60 3.64 10
H&R
Block, Inc. 07/14/88 MO 1/100th share of
Participating
Preferred Stock 26.88 120 4.47 10
HRE
Properties 10/28/88 MA 1/100th share of Series
A Participating
Preferred Stock 25.75 65 2.52 10
Hadson
Corporation 07/05/88 DE 1/100th share of Series A
Preferred Stock 4.00 26 6.50 10
Hallwood
Realty
Partners L.P. 11/30/90 DE 1 share of Common Stock 16.88 50 3.55 10
Hamilton
Financial
Services
Corp. 10/28/93 DE 1/1000th share of
Preferred Stock 7.13 33.75 4.73 10
Hancock
Fabricks Inc. 08/30/91 DE 1 share of Common Stock 21.88 90 4.11 10
Handy &
Harman 01/26/89 NY 1 share of Common Stock 17.13 58 3.39 10
Hannaford
Bros. Co. 02/04/88 ME 1/100th share of Series
A Junior Participating
Preferred Stock 35.75 125 3.50 10
Harley-
Davidson, Inc. 05/10/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 22.88 60 2.62 10
Harnischfeger
Industries 02/06/89 DE 1/100th share of Series
D Preferred Stock 18.25 75 4.11 10
Hasbro, Inc. 06/06/89 RI 1/1000th share of Series
B Junior Participating
Preferred Stock 21.625 75 3.47 10
Hathaway Corp. 06/15/89 CO 1/100th share of Junior
Participating
Preferred Stock 4.38 17.50 4.00 10
Health
Care
Property
Inv. Inc. 07/05/90 MD 1 share of Common Stock 31.50 95 3.02 10
Health
Images, Inc. 05/11/89 FL 1/100th share of Series
B Participating
Preferred Stock 6.5 56 8.615 10
Health-
Chem Corp. 02/28/89 DE 1 share of Common Stock 2.75 10.50 3.82 10
Healthtrust
Inc. 07/13/93 DE 1/100 share of
Preferred Stock 20.00 75 3.75 10
Heck's, Inc. 11/06/89 WV 1 share of Common Stock NA 20 NA 10<PAGE>
Hecla
Mining Co. 11/09/90 DE NA 7.13 95 13.32 NA
Heekin Can 12/13/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 39.75 200 5.03 10
Heilig-
Meyers
Company 02/17/88 VA 1/100th share of
Cumulative Participating
Preferred Stock 16.13 75 4.65 10
Hein-
Werner Corp. 05/09/89 WI One share of Common
Stock 17.25 65 3.77 10
HemoTec
Inc. 02/03/89 CO One share of Common
Stock 5.63 22 3.91 10
Heritage
Bancorp 10/12/89 DE 1/100th share of Junior
Participating Cumulative
Preferred Stock 7.88 35 4.44 10
Hershey
Oil Corp. 11/24/89 CA 1 share of Common Stock 6.00 20 3.33 10
Hilton
Hotels
Corporation 07/14/88 DE 1/100th share of Series
A Junior Participation
Preferred Stock 48.13 150 3.12 10
Hologic
Inc. 12/22/92 DE 1 share of Common Stock 5.125 30 5.9 10
Homedco
Group 04/25/94 DE 1/100th of Preferred 33.25 155.00 4.66 10
HomeFed
Corp. 08/24/89 DE 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 41.88 110 2.63 10
Homeowners
Group, Inc. 11/21/90 DE 1 share of Common Stock 5.13 30 5.85 10
Hometown
Bancorporation
Inc. 09/20/90 DE 1 share of Common Stock NA 20 NA 10
Hook-
Superx Inc. 06/03/92 DE 1/100th share of
Preferred Stock 13.00 64.00 4.92 10
Hooper
Holmes Inc. 01/23/90 NY 1 share of Common Stock 8.75 NA NA 10
Horizon
Industrial
Inc. 05/21/90 GA 1 share of Common Stock 7.75 35 4.52 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS<PAGE>
<S> <C> <C> <C> <C>
General
Instrument
Corporation 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to 15%
acquisition. Standard Standard; Acquiror's Rights become void.
General
RE
Corporation 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Genesco Inc. 10 days following 10%
acquisition or
tender offer for 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard
The Genlyte
Group, Inc. 10 days following 20%
acquisition, tender
offer for 20%, or declara-
tion of an "Adverse
Person." $0.01 prior to 10th day
following 20% acquisition
or declaration of an
"Adverse Person." Standard Standard
GenRad, Inc. 10 days following 20%
acquisition or 10 business
days following tender offer
for 30%. $0.02 prior to the 10th day
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
Gentex Corp. 10 day following 15% or
15% tender offer. $0.005 prior to the 10th day
following the Stock
Acquisition Date. Standard Standard
Genus Inc. 10 days following 20%
acquisition or 10 business
days following 30%
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership or
1% event.
Genzyme
Corporation 10 days following 20%
acquisition or
tender offer for 30%. $0.01 prior to 10 days
following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or
1% event. Acquiror's Rights become void.
GA Gulf
Corporation 10 days following 15%
acquisition or
tender offer for 15%. $0.01 within 10 days
following
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
GA Pacific
Corporation 10 days following 15%
acquisition or
tender offer for 30%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 15% beneficial ownership or
1% event.
Gerber
Products Co. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Giddings &
Lewis Inc. 10 days following 20%
acquisition, or 10
business days following
20% tender offer. $0.01 prior to Stock
Acquisition Date. Standard Standard; also triggered by 1% event.
Gleason Corp. 10 days following 15%
acquisition or
tender offer except in
case of permitted offer. $0.01 prior to Stock
Acquisition Date; may be
redeemed after Subscrip-
tion Period expiration
if no beneficial ownership
greater than or equal
to 10%. Standard Standard; also triggered by 15% beneficial ownership
except in case of permitted offer.
Global
Natural
Resources Inc. 10 days following 10%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by 10% beneficial ownership or
1% event.
Goody
Products 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Gordon
Jewelry
Corporation 10 days following 20%
acquisition or 10 days
following tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
Gould Inc. 10 days following 20%
acquisition or
tender offer for 25%. $0.01 prior to 15 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 25% beneficial ownership.
Graco Inc. 15 days following 20%
acquisition or 15 business
days following
20% tender offer. $0.01 prior to 20 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 1% event.
Graham Corp. 10 days following 20%
acquisition or
30% tender offer. $0.01 prior to close of
business on the
Distribution Date. Standard Standard; also triggered by 30% beneficial ownership.
Great Lakes
Chemical Corp. 15% acquisition or tender
offer for 15%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Great
Northern
Nekoosa
Corporation 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or
1% event. Acquiror's Rights become
Greenwich
Pharmaceuticals
Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Grow
Group, Inc. 10 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to the 10th
business day following
20% acquisition; will be
reinstated if Acquiror
reduces beneficial ownership
to less than 5%. Standard Standard; also triggered by 30% beneficial ownership.
Grubb &
Ellis
Company 10 days following 25%
acquisition or
tender offer. $0.01 prior to 10 business
days following 25%
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Grumman
Corporation 10 days following 20%
acquisition or
tender offer. $0.01 prior to the 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Guaranty
National
Corp. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20% acquisition
in or in case of
fair offer. Standard Standard
Gulf+
Western Inc. 10 days following a 15%
acquisition or a date
fixed by the Board which
is no later than the 19th
business day following a
tender offer for 30%. $0.01 prior to 10 days following
the Stock Acquisition
Date. Standard Standard; also triggered by 15% beneficial ownership or
a 1% event. Acquiror's Rights become void.
Gullford
Mills Inc. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
HBO &
Company 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
H.F.
Ahmanson &
Company Primary rights: 10 business
days following 15% acquisition.
Secondary Rights: announcement
of 25% acquisition or tender
offer for 25%. $0.01 prior to the 10th
business day following 15%
acquisition for Primary Rights
and prior to 25% acquisition
for Secondary
Rights. Primary:
None
Secondary:
Standard;
Acquiror's
Rights
become
void. Primary: purchase a number of Common Shares equal to 50%
of the number of Common Shares outstanding divided by
number of exercisable Primary Rights outstanding at a
price equal to 20% of market value. Secondary:
Standard; also triggered by 25% acquisition; Acquiror's
Rights become void.
H.M.S.S.,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the 10th
business day following
the Stock Acquisition
Date and may be reinstated
if Acquiror reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
H&R
Block, Inc. Immediately following 20%
acquisition or 10 days following
tender offer for 20%. $0.01 prior to the 20%
acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
HRE
Properties 10 business days following
20% acquisition or 30%
tender offer. $0.01 prior
to 11/13/98 Standard Standard; also triggered by 1% event.
Hadson
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to the 10th
day following 20%
acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Hallwood
Realty
Partners L.P. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date; or 15%
Acquisition Standard Standard
Hamilton
Financial
Services
Corp. 10 business days following
20% acquisition. $0.01 prior to
acquisition Standard Standard; triggered by 20% beneficial ownership.
Hancock
Fabricks Inc. 10 days following 20%
acquisition or
30% tender offer. NA Standard Standard<PAGE>
Handy &
Harman 10 days following 20%
acquisition or
tender offer for 20%. $0.02 prior to the 10th day
following
20% acquisition. Standard Standard; Acquiror's Rights become void.
Hannaford
Bros. Co. 10 days following 20%
acquisition or tender
offer for 30%. (m) $0.03 prior to 10 days
following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Harley-
Davidson, Inc. 10 days following 20%
acquisition or
tender offer for 25%. $0.01 prior to the 10th day
following the Stock
Acquisition Date. Standard Standard; also triggered by beneficial ownership of 25%.
Harnischfeger
Industries 10 days following 20%
acquisition or
tender offer. $0.02 prior to
Distribution Date. Standard Standard; also triggered by 20% beneficial ownership.
Hasbro, Inc. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Hathaway
Corp. 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.01 prior to the 10th business
day following Stock
Acquisition Date; may be
reinstated if Acquiror reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by 20% beneficial ownership.
Health
Care
Property
Inv. Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Health
Images, Inc. 10 days following 20%
acquisition of
tender offer. $0.01 prior to acquisition
or expiration of
the rights. Standard Standard
Health-
Chem Corp. 10 days following 30%
acquisition or
tender offer. $0.01 prior to the 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership,
except in case of Permissible Offer.
Healthtrust
Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to
acquisition Standard
Heck's, Inc. 10 days following 15%
acquisition or
20% tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
Hecla
Mining Co. 10 days following 15%
acquisition or tender
offer for 15%. NA Standard Standard
Heekin Can 10 days following 15%
acquisition or
20% tender offer. $0.01 prior to 10th day
following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership or
by 1% event.
Heilig-
Meyers
Company 10 days following 20%
acquisition or 10
business days following
30% tender offer. $0.01 prior to 10 days
following Share Acquisition
Date; may be reinstated
if Acquiror reduces benefi-
cial ownership to
5% or less. Standard Standard; also triggered by 10% beneficial ownership.
Hein-
Werner Corp. 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.03 prior to Stock
Acquisition Date; may be
redeemed in case of
Fair Offer. Standard Standard; also triggered by 20% beneficial ownership or
by 1% event.
HemoTec Inc. 10 days following 20%
acquisition of
tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date. Standard Standard; triggered by 25% beneficial ownership.
Heritage
Bancorp 10 days following 20%
acquisition or 10 business days
following 20% tender offer
or immediately after Adverse
Person declaration. $0.02 prior to Adverse Person
declaration, 10th day following
Stock Acquisition Date or
following event giving rise
to the Merger
Right. Standard Standard; triggered by 20% beneficial ownership or
Adverse Person declaration.
Hershey
Oil Corp. 10 days following 20%
acquisition or 10 business
days following
30% tender offer. $0.02 prior to 10th day following
Stock Acquisition
Date. Standard Standard; also triggered by 20% beneficial ownership
except in case of qualified offer.
Hilton
Hotels
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 30%
Acquiror's Rights become void.
Hologic Inc. 10 days following 15%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by beneficial ownership of 15%;
Acquiror's Rights become void.
Homedco
Group 10 days following 20%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 20% beneficial ownership
HomeFed
Corp. 10 days following 20%
acquisition or tender
offer for 25%. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard
Homeowners
Group, Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Hometown
Bancorporation
Inc. 10 days following 14.5%
acquisition or tender offer
for 14.5%. $0.01 prior to Stock
Acquisition Date or
14.5% Acquisition. Standard Standard<PAGE>
Hook-
Superx Inc. 10 days following 20%
acquisition or tender
offer for 20% .01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
Hooper
Holmes Inc. 20% acquisition or
30% tender offer. $0.05 prior to 10th day
following Standard Standard; also triggered by 20% - 50% acquisition.
Horizon
Industrial
Inc. 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.01 prior to 10th day
following the stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership or
1% event.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
The Horn
& Hardart
Company 03/17/88 NV 1/100th share of Series
A Preferred Stock 9.13 40 4.38 10
Houghton
Mifflin
Company 12/31/88 MA 1/1000th share of Series
A Junior Participating
Preferred Stock. 34.38 125 3.64 10
Houston
Industries
Inc. 07/11/90 TX 1/100th share of
Preferred Stock 33.00 85 2.58 10
HPSC Inc. 08/11/93 DE 1/100 P 3.00 20 6.67 10
Hubbell
Incorporated 12/13/88 CT 1 share of Common
Stock (Class A and B) 32.50 120 3.69 10
Hunt
Manufacturing
Co. 08/08/90 PA 1/1000th share of
Preferred Stock 12.88 60 4.66 10
Huntington
BancShares
Inc. 02/21/90 MD 1/100th share of Series
A Junior Participating
Preferred Stock 16.82 90 5.35 10
ICF
International
Inc. 01/13/92 DE 1/100th share of
Preferred Stock 8.50 50.00 5.88 10
ICM Property
Investors
Incorporated 07/18/89 DE 1/100th share of Series
A Preferred Stock. 10.25 30 2.93 10
IES
Industries
Inc. 11/06/91 OH 1/100th share of
Preferred Stock 27.88 70.00 2.51 10
IFR
System Inc. 02/28/89 DE 1 share of Common Stock 10.25 50 4.88 10
IKOS
Systems Inc. 01/27/92 DE 1/100th share of
Preferred Stock 2.31 10.00 4.32 10
IMC
Fertilizer
Group, Inc. 06/21/89 DE 1/100th share
Participating
Preferred Stock 35.25 150 4.26 10
INB
Financial
Corp 10/16/90 IN 1/100th share of
Preferred Stock 16.50 80 4.85 10
INTERCO
Incorporated 07/11/88 DE 1 share of Common Stock 45.25 160 3.54 10
IOMEGA
Corporation 07/28/89 DE 1/100th share Series
C Junior Participating
Preferred Stock 2.625 15 5.71 10
Idaho Power 01/11/90 ID 1/100th Share of
Serial Preferred Stock 28.00 85 3.04 10
Immucor, Inc. 04/10/89 GA 1 share Common Stock 5.875 30 5.11 10
Immune
Response Corp. 02/26/92 DE 1/100th share of
Preferred Stock 28.625 150.00 5.24 10
Immunex
Corp 01/31/91 DE 1/100th share of
Preferred Stock 33.75 190 5.63 10
Imperial
Holly Corp. 09/14/89 TX 1/100th share of Series
A Junior Participating
Preferred Stock 26.25 90 3.43 10
Inatron Corp. 04/03/91 MA NA 10.88 NA NA NA
Inco Limited 10/03/88 CAN NA 29.00 NA NA NA
Income
Opportunity
Realty
Trust 04/14/89 CA 1 share Common Stock 6.25 12 1.92 10
Independence
Bancorp, Inc. 02/22/89 PA 1/100th share of Series
A Preferred Stock 22.38 80 3.57 10
Independent
Bank Corp. 01/24/91 MA 1/1000th share of
Preferred Stock NA 15 NA 10
Indiana
Federal Corp. 02/26/92 DE 1 share of Common Stock 17.00 60.00 3.53 10
Information
International
Inc. 09/11/90 DE 1 share of Common Stock 10.50 18 1.71 10
Information
Resources,
Inc. 03/02/89 DE 1/100th share of Series
A Participating
Preferred Stock 12.88 60 4.66 10
Informix Corp. 09/17/91 DE 1/1000th share of
Preferred Stock 6.50 35 5.38 10
Informix Corp. 09/17/91 DE 1/100th share of
Preferred Stock 6.50 35.00 5.38 10
Infotron
Systems
Corporation 02/17/88 PA 1 share of Common Stock 7.25 27 3.72 10
Ingersoll-
Rand
Company 12/07/88 NJ 1/100th share of Series
A Preference Stock 33.63 130 3.87 10
Instron Corp. 04/03/91 MA NA NA NA NA NA
Instrument
Systems
Corporation 04/02/86 DE 1/2 Share of Common
Stock 2.00 6 3.0 10
Integrated
Device
Technology
Inc. 02/18/92 DE 1/100th share of
Preferred Stock 7.25 50.00 6.90 6
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
The Horn &
Hardart
Company 10 days following 20%
acquisition or 10 business
days following
tender offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial owner-
ship to 10%
or less. Standard Standard; also triggered by 30% beneficial ownership
Houghton
Mifflin
Company 10 days following 20%
acquisition of tender offer
for 30% or immediately after
a person is declared to be
an "Adverse Person". $0.05 prior to the 10th day
following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or
1% event. Acquiror's Rights become void.
Houston
Industries
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
HPSC Inc. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to
acquisition Standard Standard
Hubbell
Incorporated 10 days following 20%
acquisition or not later than
19 business days following
30% tender offer. $0.01 prior to 10 days
following 20% acquisition
of Class A. Standard Standard; also triggered by 25% beneficial ownership of
Class A or 1% event.
Hunt
Manufacturing
Co. 10 days following 15%
acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date Standard Standard
Huntington
BancShares
Inc. 20% acquisition or 10
business days following
a 20% tender offer. $0.01 prior to triggering
event. Standard Standard
ICF
International
Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 10%
acquisition in or in case
of fair offer. Standard Standard
ICM
Property
Investors
Incorporated 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 20% beneficial ownership or
1% event.
IES
Industries
Inc. 10 days following 20%
acquisition or tender
offer for 20% $0.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
IFR
System Inc. 10 business days following
20% acquisition or
tender offer. $0.01 prior to Stock
Acquisition Date. Allows
for redemption if
Qualified Offer
is accepted. Standard Standard; also triggered by 20% beneficial ownership or
by 1% event. Acquiror's Rights become void.
IKOS
Systems Inc. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
IMC
Fertilizer
Group, Inc. 20% acquisition or tender
offer for 20%. $0.01 prior to
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
INB
Financial
Corp 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
INTERCO
Incorporated 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
IOMEGA
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10th day
following
acquisition. Standard Standard; Acquiror's Rights become void.
Idaho Power Following 20% acquisition
or 10 days following
20% tender offer. $0.01 prior to Stock
Acquisition Date. Standard Standard
Immucor, Inc. 20% acquisition, or 2% acquisi-
tion without consent of a
previously approved 20%
acquisition. $0.01 prior to
acquisition. Standard Standard
Immune
Response
Corp. 10 days following 15%
acquisition or
tender offer for 15% $.01 prior to 15%
acquisition in or in case
of fair offer. Standard Standard
Immunex Corp 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date or
15% Acquisition. Standard
Imperial
Holly
Corp. 10 days following 25%
acquisition or 10 days
following tender offer. $0.01 prior to 25%
acquisition. Standard Standard
Inatron
Corp. NA NA NA NA
Inco Limited NA NA NA NA
Income
Opportunity
Realty
Trust 10 days following 20%
acquisition, tender offer
for 20%, or after a person
is declared an
"Adverse Person". $0.01 prior to 20%
acquisition or any
holder of 10% or more
is determined to be an
"Adversed Person". Standard Standard; also triggered by 27.5% beneficial ownership.
Independence
Bancorp,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the earlier
of 10 days following 20%
acquisition and
02/21/99. Standard Standard; also triggered by 20% beneficial ownership.
Independent
BankCorp. 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to
Acquisition. Standard Standard<PAGE>
Indiana
Federal
Corp. 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Information
International
Inc. 10 days following 15%
acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date or
15% Acquisition. Standard Standard
Information
Resources,
Inc. 10 days following 20%
acquisition or
tender offer for 25%. $0.01 prior to 03/15/99
or 10 business days following
20% acquisition. Standard Standard; also triggered by 25% beneficial ownership or
board determined adverse person.
Informix
Corp. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Informix
Corp. 10 days following 20%
acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Infotron
Systems
Corporation 10 days following 15%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 10 days after
the Stock Acquisition Date;
may be reinstated if Acquiror
reduces ownership to
10% or less. Standard Standard; also triggered by 25% beneficial ownership.
Ingersoll-
Rand
Company 10 days following 20%
acquisition or tender
offer for 20% $0.01 prior to the 10th day
following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or
1% event. Acquiror's Rights become void.
Instron Corp. NA NA NA NA
Instrument
Systems
Corporation 10 days following
20% acquisition. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Integrated
Device
Technology
Inc. 10 days following 15%
acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Intel
Corporation 01/19/89 CA 1 share of Common Stock 24.25 120 4.95 10
Intergraph
Corp. 09/09/93 DE 1 share of Common Stock 11.13 50.00 4.49 10
Interim
Services 02/17/94 DE 1/100th of Preferred 24.38 98.00 4.02 10
Interlake
Corporation 01/26/89 DE 1 share of Common Stock 44.38 150 3.38 10
Interleaf,
Inc. 07/15/88 MA 1/100th share of Series
A Junior Participating
Preferred Stock 13.25 65 4.91 10
Intermedics,
Inc. 04/21/88 TX 1 share of Common Stock 28.88 100 3.46 10(q)
International
Broadcasting
Corp. 05/05/89 MN 1 share of Common Stock 11.00 50 4.55 10
International
Corona Corp. 08/16/91 ON 1 share of Common Stock NA 50 NA 10
International
Flavors and
Fragrances 02/13/90 NY 1 share of Common Stock 58.00 200 3.45 10
International
Minerals and
Chemical
Corporation 03/10/89 NY 1 share of Common Stock 40.00 100 2.50 10
International
Multifoods
Corp 10/04/90 DE 1/100th share of
Preferred Stock 31.5 100 3.17 10<PAGE>
International
Technology 12/14/89 DE 1/1000th share of Series
A Junior Participating
Cumulative
Preferred Stock 6.75 35 5.19 10
Interpublic
Group 07/18/89 DE 1/100th share of Series
A Cumulative Participating
Preferred Stock 31.88 100 3.14 10
InterTAN 09/22/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 49.13 175 3.56 10
Intervoice
Inc. 04/23/91 TX 1/100th share of
Preferred Stock 14.25 45 3.18 10
Investors
Savings
Corp. 05/07/91 DE 1/100 share of
Preferred Stock 10.88 40 3.68 10
Iowa-
Illinois
Gas &
Electric Co. 02/25/92 IL 1/2 share of Common
Stock 24.75 33.00 1.33 10
Ipalco
Enterprises
Inc. 06/26/90 IN 1 share of Common Stock 24.50 50 2.04 10
Irving
Bank
Corporation 03/27/88 NY 1 share of Common Stock 65.38 200 3.06 Earlier
of 10 years
or 24 mos.
after the
elimination of
certain
restrictions
on interstate
banking.
Isomedix
Inc. 06/10/88 DE 1/100th share of Series
A Preferred Stock 6.25 20 3.20 10
J. C. Penney 01/31/90 DE 1/200th share of Series
A Junior Participating
Preferred Stock 66.88 280 4.19 10
J. P.
Industries,
Inc. 03/30/89 MI 1/100th share of Series
A Junior Participating
Preferred Stock 17.25 65 3.77 10
J.P.
Stevens &
Co., Inc. 03/28/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 63.88 100 1.57 8<PAGE>
Jacobs
Engineering
Group Inc. 12/20/90 DE 1/100th share of
Preferred Stock 26.00 90 3.46 10
Jacobson
Stores Inc. 10/04/88 MI 1/100th share of Series
A Preferred Stock 21.25 100 4.71 10
Jacor
Communications
Inc. 12/31/90 OH 1 share of
Preferred Stock 2.25 8 3.55 10
James
River Corp. 02/09/89 VA 1/100th share of Series
M Cumulative Participating
Preferred Stock 29.63 150 5.06 10
James
River
Corporation 06/28/92 VA 1/1000th share of
Preferred Stock 20.25 150.00 7.41 7
Jeffries
Group, Inc. 05/12/88 DE 1/100th share of Series A
Junior Participating
Preferred Stock 11.75 40 3.40 10
John H.
Harland
Company 06/09/89 GA 1 share of Common Stock 23.5 80 3.40 10
Johnson
Controls 05/24/89 WI NA 40.125 NA NA 10
Johnstown
Consolidated
Realty
Trust 03/13/89 CA 1 share of Common 6.5 15 2.31 10
Joslyn
Corporation 02/10/88 IL 1 share of Common Stock 26.00 90 3.46 10
Jostens, Inc. 08/09/88 MN 1 share of Common Stock 17.63 60 3.40 10
Juno
Lighting, Inc. 08/02/89 DE 1 share of Common Stock 17.75 75 4.23 10
K mart
Corporation 05/17/88 MI 1/1000th share of Series
A Junior Participating
Preferred Stock 31.75 110 3.46 10
K-Tron
International
Inc. 10/03/91 NJ 1/100th share of
Preferred Stock 8.13 40.00 4.92 10
KU
Energy Corp. 12/27/91 KY 1/100th share of
Preferred Stock 27.50 65.00 2.36 10
Kaneb
Services, Inc. 03/28/88 DE 1/100th share of Series
B Junior Participating
Preferred Stock 2.50 10 4.00 10
Kemper Corp 07/18/90 DE 2/100th share of
Preferred Stock 42.13 220 5.22 10
Kennametal
Inc. 10/23/90 PA 1/100th share of
Preferred Stock 26.75 150 5.61 10
Kent
Electronics
Corp. 05/11/90 TX 1/100th share of Series
A Preferred Stock 8.75 40 4.57 10
Ketema Inc. 10/15/91 DE 1/100th share of
Preferred Stock 10.63 50.00 4.71 10
Keystone
International
Inc. 06/20/90 TX 1/1000 share of
Preferred Stock 26.63 80 3.00 10
Koger
Properties
Inc. 09/30/90 FL 1/100th of
Preferred Stock 11.13 45 4.04 10
Kraft, Inc. 09/01/88 DE 1 share of Common Stock 55.63 200 3.60 10
L.E.
Meyers
Co. Group 03/27/90 DE 1/6th share of Series
I Preferred Stock NA NA 23 10
LGE&E
Energy Corp 12/05/90 KY 1 share of
Preferred Stock 41.50 110 2.65
LIN
Broadcasting
Corporation 05/02/88 DE 1/1000th share of Series
A Participating Cumulative
Preferred Stock 60.50 250 4.13 10
L.S.
Starrett Co. 06/06/90 MA 1 share of Common Stock 25.25 92 3.64 10
LSB
Industries 02/17/89 DE 1/100th share of Series
2 Participating Class
C Preferred Stock. 2.88 14 4.86 10
LTX
Corporation 05/17/89 MA 1 share of Common Stock 4.75 30 6.32 10
La Quinta
Motor
Inns Inc. 09/26/90 TX 1 share of Common Stock 12.25 50 4.08 10
The Lamson
& Sessions
Co. 08/22/88 OH 1/100th share of Series
II Cumulative Redeemable
Serial Preference Stock 14.00 47 3.36 10
Landmark
Bancshares
Corp 10/22/90 MO 1/100th share of
Preferred Stock 5.75 30 5.22 10
Laserscope 10/31/91 CA 1 share of Common Stock 7.13 34.00 4.77 10
Lattice
Semiconductor
Corp. 09/11/91 DE 1/100th share of
Preferred Stock 11.25 60.00 5.33 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Intel
Corporation 10 days following 20%
acquisition or
tender offer for 20%. $0.01 prior to expiration
date. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Intergraph
Corp. 10 business days following
15% acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 15% beneficial ownership.
Interim
Services 10 days following
15% acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 15% beneficial ownership
Interlake
Corporation 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to the 10th
day following 15%
acquisition. Standard Standard; also triggered by 20% beneficial ownership
or 1% event. Acquiror's Rights become void.
Interleaf,
Inc. 10 days following
20% acquisition or 10
business days following
tender offer for 20%. $0.01 prior to the 10th
day following 20%
acquisition; may be
reinstated if Acquiror
reduces beneficial owner-
ship to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Intermedics,
Inc. 10 days following
20% acquisition or
tender offer for 30%. $0.10 prior to the 10th
day following the Stock
Acquisition Date. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
International
Broadcasting
Corp. 10 days following
15% acquisition
without Company's
consent or tender
offer for 20%. $0.01 prior to 30th day
following Stock
Acquisition Date; may be
reinstated if Acquiror
reduces ownership to 10%.
Standard Standard; triggered by 20% beneficial ownership or by 1%
event.
International
Corona Corp. 10 days following
15% acquisition or
15% tender offer. $0.0001 prior to Stock
Acquisition Date. Standard Standard
International
Flavors and
Fragrances 10 days following
20% tender or 10th
business day after
Stock Acquisition Date. $0.01 anytime prior
to Flip-in date. Standard Standard; also triggered by 50% beneficial ownership.
International
Minerals and
Chemical
Corporation 10 days following
20% acquisition or
30% tender offer. $0.05 prior to
20% Acquisition. Standard Standard; also triggered by 20% beneficial ownership.
International
Multifoods
Corp 10 days following
10% acquisition or
tender offer for 10%. $0.01 prior to
Stock Acquisition
Date or 10%
Acquisition Standard Standard
International
Technology 10 business days
following 20%
acquisition or
tender offer. $0.01 prior to
Flip-in or Flip-
over event. Standard Standard; also triggered on tenth business day following
20% beneficial ownership.
Interpublic
Group 10 days after 15%
acquisition or 2%
acquisition by 15%
shareholder or 10 days
following tender offer
for 15% or ten days
following filing of
registration statement
for any such exchange
offer. $0.01 prior to
Stock Acquisition
Date or merger of
company in which
company does not
survive. Standard Standard; also triggered by 15% beneficial ownership or
2% increase in holdings over 15%.
InterTAN 10 days following
20% acquisition or
tender offer for 30%. $0.03 prior to 20%
acquisition. Standard Standard
Intervoice
Inc. 10 days following
20% acquisition or
10 days following
20% tender offer. $0.01 prior to Stock
Acquisition Date or
20% acquisition. Standard Standard
Investors
Savings Corp. 10 days following
15% acquisition $0.01 prior to Stock
Acquisition Date. Standard Standard
Iowa-Illinois
Gas & Electric
Co. 10 days following
15% acquisition or
tender offer for 15% $.01 prior to 10%
acquisition in or
in case of fair
offer. Standard Standard
Ipalco
Enterprises
Inc. 10 days following
20% acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. May
be reinstated if
Beneficial Ownership
falls below 10%. Standard Standard
Irving Bank
Corporation 10 days following
20% acquisition. $0.01 prior to 20%
acquisition. Standard Standard (o)<PAGE>
Isomedix Inc. 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
J. C. Penney 10 days following
15% acquisition or
nineteen business days
following 30% tender
offer. $0.01 prior to tenth
day following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
J. P.
Industries,
Inc. 20 business days
following 20%
acquisition or tender
offer or contemplated
offer by registration
statement. $0.01 prior to 20
business days
following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
J.P. Stevens
& Co., Inc. 10 days following
20% acquisition or,
at the discretion of
the board, not more
than 30 business days
following tender offer
for 30%. $0.05 prior to the
10th day following
20% acquisition; may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 40% beneficial ownership.
Acquiror's Rights become void.
Jacobs
Engineering
Group Inc. 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date or
15% Acquisition. Standard
Jacobson
Stores Inc. 10 days following
25% acquisition or
tender offer for 30%. $0.01 prior to 30th
day following 25%
acquisition. Standard Standard; also triggered by 40% beneficial ownership.
Acquiror's Rights become void.
Jacor
Communications
Inc. 10 days following
15% acquisition or
tender offer for 15%. $0.001 prior to Stock
Acquisition Date. Standard Standard
James River
Corp. 10 days following
10% acquisition or
10 business days
following 10% tender
offer. $0.01 prior to 10th
day following Stock
Acquisition Date; may be
reinstated if no triggering
event occurs and Acquiring
Person reduces ownership to
5% or less. Standard Standard; also triggered by 25% beneficial ownership
unless in case of Qualified Offer, or by 1% event.
James
River
Corporation 10 days following
15% acquisition or
tender offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Jeffries
Group, Inc. 10 business days
following 20.1%
acquisition or tender
offer for 20.1%. $0.01 prior to time
there is an Acquiring
Person. Standard Standard; triggered by 20.1% beneficial ownership.
John H.
Harland
Company 10% acquisition or
tender offer for 30%. $0.01 prior to
acquisition. Standard Standard; also triggered by 10% beneficial ownership.
Johnson
Controls 10% acquisition or
tender offer for 10%. Standard Standard Standard; also triggered by 20% beneficial ownership.
Johnstown
Consolidated
Realty Trust 10 days following
20% acquisition,
tender offer for 20%,
or after a person is
declared an "Adverse
Person". $0.01 prior to 20%
acquisition or any
holder of 10% or more
is determined to be an
"Adverse Person". Standard Standard; Acquiror's rights become void.
Joslyn
Corporation 10 days following
20% acquisition
(30% acquisition if
own 20% on or before
03/04/88) or 10 business
days following tender
offer for 30%. $0.05 prior to 15
days following the
Stock Acquisition Date;
may be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Exercise price reduced to 20% of then current Common
Stock market price. Also triggered by 30% beneficial
ownership.
Jostens, Inc. The close of business
on the 10th day
following (i) 20%
acquisition or (ii)
tender offer for 25%. $0.01 prior to the
close of business on
the 13th day following
the Stock Acquisition
Date and may be reinstated
if Acquiror reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by 25% beneficial ownership or
1% event. Acquiror's Rights become void.
Juno Lighting,
Inc. 10 days following
15% acquisition of
tender offer for 30%. $0.01 prior to 15%
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
K mart
Corporation 10 business days
following 20%
acquisition or tender
offer. $0.01 prior to 10
business days
following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's rights become void.
K-Tron
International
Inc. 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
KU Energy
Corp. 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
Kaneb
Services, Inc. 15 days following
20% acquisition or
30% tender offer. $0.05 prior to 15
days following the
Stock Acquisition
Date; may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Kemper Corp 10 days following
20% acquisition or
tender offer for 30%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. May
be reinstated if
Beneficial Ownership
falls below 10%. Standard Standard
Kennametal
Inc. 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Kent
Electronics
Corp. 10 days following
20% acquisition or
10 business days
following 30% tender
offer. $0.01 prior to 10 days
following Stock
Acquisition Date; may
be reinstated if
beneficial ownership
reduces to 10%. Standard Standard; also triggered by 20% beneficial ownership.
Ketema Inc. 10 days following
30% acquisition or
tender offer for 30% $0.01 prior to a 20%
acquisition is or in
of fair offer. Standard Standard
Keystone
International
Inc. 10 days following
20% acquisition or
tender offer for 20%. $0.001 prior to
Stock Acquisition
Date. Standard Standard
Koger
Properties
Inc. 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to
Stock Acquisition
Date. Standard Standard
Kraft, Inc. 10 business days
following a 20%
acquisition or 10
business days
following tender
offer for 20%. $0.01 prior to a
20% acquisition. Standard Standard; also triggered by a 1% event. Acquiror's <PAGE>
Rights become void.
L.E. Meyers
Co. Group 10 days following
30% acquisition or
tender, or 15%
"Adverse Person"
ownership. $0.01 prior to 10th
day following the
Stock Acquisition
Date. Standard Standard; also triggered by 15% "Adverse Person."
LGE&E Energy
Corp 10 days following
20% acquisition or
tender offer for 20%. NA Standard Standard
LIN
Broadcasting
Corporation 10 days following
15% acquisition or
tender offer for 30%. $0.01 prior to 10th
day following 15%
acquisition. Standard Standard; Acquiror's Rights become void.
L.S. Starrett
Co. 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
LSB Industries 10 days following
30% acquisition or
10 business days
following 30% tender
offer. $0.01 prior to Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership or
by 1% event.
LTX
Corporation 10 days following
20% acquisition or
tender offer for 30%. $0.01 prior to the
Stock Acquisition
Date. Standard Standard
La Quinta
Motor Inns
Inc. 10 days following
25% acquisition or
tender offer for 25%. $0.02 prior to Stock
Acquisition Date. Standard Standard
The Lamson &
Sessions Co. Close of business on
the 20th day following
a 15% acquisition or
close of business on the
20th day following tender
offer for 20%. $0.01 prior to the
close of business on
the 20th day following
a 20% acquisition and
may be reinstated if
Acquiror reduces
beneficial ownership to
10% or less. Standard Standard; also triggered by 15% beneficial ownership or
Board declaration of an "Adverse Person". Acquiror's
Rights become void.
Landmark
Bancshares
Corp 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Laserscope 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Lattice
Semiconductor
Corp. 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Learning
Company 03/16/94 DE 1/100th of
Preferred 18.75 75.00 4.00 10
Leggett &
Platt, Inc. 02/15/89 MO 1/100th share of
Series A Junior
Participating
Preferred Stock 24.88 125 5.02 10
Leisure
Technology,
Inc. 02/09/88 DE 1/4th share of
Common Stock 4.00 7.50 1.88 10
Lesco Inc 05/18/94 OH 1/100th of
Preferred 16.50 75.00 4.55 10
Leslie Fay
Companies Inc. 04/05/93 DE 1 1/2 Share of
Common Stock 3.00 18 6.0 10
Levitz Furniture
Inc. 06/30/93 DE 1/100 Share of
Preferred Stock NA 50 NA 10<PAGE>
Lewis Galoob
Toys 01/19/90 DE 1/1000th share of
Series A Preferred
Stock 11.88 43 3.62 10
Liberty Corp 08/07/90 SC 1/100th share of
Preferred Stock 47.00 150 3.19 10
Liberty National
Bancorp Inc. 08/09/92 KY 1/100th share of
Preferred Stock 30.0 85.00 2.8 10
Lifetime
Corporation 09/30/92 DE 1/100th share of
Preferred Stock 12.5 60.00 4.80 10
Lincoln Financial
Corp. 12/19/89 IN 1 share of Common
Stock 24.50 90 3.67 10
Lincoln
Telecommunications
Company 01/15/88 NE 1 share of Common
Stock 26.75 175 6.54 10
Liqui-Box
Corp. 02/22/89 OH 1/10th share of
Series A Preferred
Stock 48.00 175 3.65 10
Live
Entertainment
Inc. 07/19/90 DE 1/100th share of
Series R Junior
Participating
Preferred Stock. 22.75 90 3.96 10
Liz Clairborne,
Inc. 12/08/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 16.25 85 5.23 10
Logicon Inc. 04/06/90 DE 1 share of Common
Stock 17.88 115 6.43 10
Lone Star
Industries,
Inc. 06/02/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 31.88 100 3.14 10
Longview Fibre 03/01/89 DE 1/10th share of
Common Stock 63.88 200 3.13 10
Lotus
Development
Corporation 11/08/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 17.00 75 4.41 10<PAGE>
Louisiana
General
Services, Inc. 11/22/88 DE 1/100th share of
Series A Junior
Preferred Stock. 12.375 30 2.42 10
Lowe's
Companies, Inc.09/09/88 NC 1/1000th share of
Series A Participating
Cumulative Preferred
Stock 20.75 100 4.82 10
Lubrizol
Corporation 10/31/88 OH 1/25th share of Serial
Preferred Stock,
Series A 37.00 0.04 NA 3
Luby's
Cafeterias Inc.04/16/91 TX 1/2 share of Common
Stock 20.38 27.50 1.35 10
Lumex, Inc. 05/19/88 NY 1/100th share of
Series A Preferred
Stock 9.75 60 6.15 10
M.A. Hanna
Company 12/24/91 DE 1/100th share of
Preferred Stock 22.25 95 4.27 10
MAPCO, Inc. 09/27/89 DE 1/200th share of
Series A Junior
Participating Series
Preferred Stock 37.25 175 4.70 10
MAYTAG
Corporation 05/03/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 23.50 75 3.19 10
MBIA Inc. 12/12/91 CT 1/100th share of
Preferred Stock 45.00 160.00 3.56 10
MBIA Inc. 12/31/91 CT 1/100th share of
Preferred Stock 48.25 160.00 3.32 10
MCN Corp. 12/20/89 MI 1/100th share of
Series A Junior
Participating
Preferred Stock 23.38 70 2.99 10
MDT Corp 02/10/90 DE 1/4th share of
Common Stock 6.50 32 4.92 10
MGI Properties 06/21/89 MA 1/100th share Series
A Participating
Preferred Stock 14.875 60 4.03 10
MTEL 07/26/89 DE 1/100th share of
Series C Junior
Participating
Preferred Stock 11.00 30 2.73 10<PAGE>
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Learning
Company 10 days following
15% acquisition $0.01 prior to
10% acquisition Standard Standard; also triggered by 15% beneficial ownership
Leggett &
Platt, Inc. 10 days following
20% acquisition or
10 business days
following 20% tender
offer. $0.01 prior to
Stock Acquisition
Date. Standard Standard; also triggered by 20% beneficial ownership.
Leisure
Technology,
Inc. 10 days following
15% acquisition or
tender offer. $0.01 prior to 10
days following the
Stock Acquisition
Date. Will receive
a number of
shares of
Common Stock
that has a
market value
three times the
Purchase
Price. Will receive a number of shares of Common Stock that has
a market value three times the Purchase Price. Also
triggered by 35% beneficial ownership.
Lesco Inc 10 days following
20% acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 20% beneficial ownership
Leslie Fay
Companies Inc. 10 days following
15% acquisition. $0.001 prior to
10% acquisition. Standard Standard; also triggered by beneficial ownership of 15%;
Acquiror's Rights become void.
Levitz
Furniture Inc. 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to
acquisition Standard Standard
Lewis Galoob
Toys 10 days following
20% acquisition or
10 business days
following 20% tender
offer. $0.01 prior to 10th
day following Stock
Acquisition Date;
may be reinstated if
Acquiror reduces
ownership to 10%. Standard Standard; also triggered by 20% beneficial ownership
except pursuant to Permitted Offer, or by 1% event.
Liberty Corp 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Liberty National
Bancorp Inc. 10 days following
20% acquisition or
tender offer for 30% $.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Lifetime
Corporation 10 days following
10% acquisition or
tender offer for 10% $0.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Lincoln
Financial
Corp. 10 days following
20% acquisition;
10 business days
following 30% tender
offer, or 15% "Adverse
Person". $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; triggered by 20% acquisition or "Adverse
Person".
Lincoln
Telecommuni-
cations
Company 10 days following
10% acquisition or
tender offer for 10%. $0.05 prior to the
10th day following
25% acquisition; may
be reinstated if Acquiror
reduces beneficial
ownership to 10% or
less. Standard Standard; also triggered by 10% beneficial ownership.
Liqui-Box
Corp. 10 days following
25% acquisition or
tender offer for 25%. $0.05 prior to Stock
Acquisition Date. Standard Standard; also triggered by 25% acquisition except in
case of Permitted Offer.
Live
Entertainment
Inc. 10th business day
following 20%
acquisition or 20%
tender offer. $0.01 prior to 10th
business day following
20% Ownership Date. Standard Standard; also triggered by 20% beneficial ownership or
1% event.
Liz
Clairborne,
Inc. 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership or
1% event. Acquiror's Rights become void.
Logicon Inc. 10 business days
following 20%
acquisition, 20%
tender offer, or 15%
"Adverse Person". $0.01 prior to the
10th day following
Stock Acquisition
Date. Standard Standard; also triggered by 15% "Adverse Person".
Lone Star
Industries,
Inc. 10 business days
following 20%
acquisition or tender
offer of 20% or Board
determination of an
"Adverse Person" with
15% acquisition. $0.05 prior to the
10th business day
following the Stock
Acquisition Date. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%
or determination of an "Adverse Person"; Acquiror's
Rights become void.
Longview Fibre 10 business days
following 20%
acquisition or 30%
tender offer. $0.05 prior to 10th
business day following
Stock Acquisition Date;
may be reinstated if
Acquiror reduces
ownership to 10%. Standard Standard; triggered by 30% beneficial ownership.
Lotus
Development
Corporation 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also triggered by 10% beneficial ownership.
Acquiror's Rights become void.
Louisiana
General
Services,
Inc. 10 days following
20% acquisition or
30% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also triggered by 40% beneficial ownership or
1% event.
Lowe's
Companies,
Inc. 10 days following
20% acquisition or
10 business days
following tender offer
for 20%. $0.01 prior to 10
days following the
Stock Acquisition
Date and may be
reinstated if (1)
the Acquiror reduces
beneficial ownership
to less than 10% or
(2) there is a merger
or business combina-
tion involving the
Company in which all
holders of Common
Stock are treated
alike and which does
not involve the
Acquiror. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Lubrizol
Corporation Standard $0.05 prior to
20% acquisition. Standard Standard; Acquiror's Rights become void.
Luby's
Cafeterias
Inc. 10 days following
15% acquisition or
tender offer for 15% $0.01 prior to
20% acquisition in
or in case of fair
offer. Standard Standard
Lumex, Inc. Standard $0.05 prior to 10th
day following 20%
acquisition and may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard
except 1.6x
the Exercise
Price. Standard except 1.6x the Exercise Price; Acquiror's
Rights become void.
M.A. Hanna
Company 10 days following
15% acquisition or
tender offer for 20% $0.01 prior to
20% acquisition
in or in case of
fair offer. Standard Standard
MAPCO, Inc. 10 days following
15% acquisition or
tender offer for 15%. $0.05 prior to
10th day following
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
MAYTAG
Corporation 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's rights become void.
MBIA Inc. 10 days following
10% acquisition or
tender offer for 10% $0.01 prior to
20% acquisition
in or in case of
fair offer. Standard Standard
MBIA Inc. 10 days following
10% acquisition or
tender offer for 10% $.01 prior to 10%
acquisition in or
in case of fair
offer. Standard Standard
MCN Corp. 10 days following
20% acquisition or
10 business days
following 20% tender
offer. $0.01 prior to
20% beneficial
ownership. Standard Standard; also triggered by 20% beneficial ownership.
MDT Corp 10 business days
following 20%
acquisition or 20%
tender offer. $0.01 prior to 10
days following the
Stock Acquisition
Date. Standard Standard
MGI Properties 10 days following
15% acquisition or
tender offer for 30%. $0.03 prior to the
10th day following
15% acquisition and
may be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
MTEL 10 days following
20% acquisition or
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; alto triggered by 20% beneficial ownership or
by 1% event.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
The MacNeal-
Schwendler
Corporation 09/14/88 CA 1/2 share of
Common Stock 10.38 50 4.82 10
Management
Science
America, Inc. 08/17/88 GA 1 share of
Common Stock 9.00 30 3.33 5
Manufacturers
Hanover
Corporation 10/18/88 DE 1/100th share
of Series R
Preferred Stock 27.88 120 4.30 10
Manufactures
National Corp 01/18/91 DE 1/100th share of
Preferred Stock 45.13 80 1.77 6
Marietta
Corporation 09/12/89 NY 1/100th shares of
Series A
Participating
Preferred Stock 22.00 110 5.00 10
Marion
Laboratories,
Inc. 08/04/88 DE 1/1000th share of
Series A Junior
Participating
Preferred Stock 19.88 100 5.03 10
Marquest
Medical
Products Inc. 08/08/91 CO 1/2 share of
Common Stock 12.00 25 2.08 10
Marriott
Corporation 02/03/89 DE 1/1000th share
of Series A Junior
Participating
Preferred Stock 33.00 150 4.55 10
Marsh &
McLennan
Companies, Inc.02/19/91 DE NA 76.63 NA NA NA<PAGE>
Marsh
Supermarkets,
Inc. 08/01/89 IN 1/100th share of
Series A Junior
Participating
Preferred Stock 19.13 65 3.40 10
Matlack
Systems, Inc. 06/14/89 DE 1 share of
Common Stock 8.5 60 7.06 10
Mattel Inc. 02/07/92 DE 1/100th share of
Preferred Stock 22.00 150 6.82 10
Mattel Inc. 02/07/92 DE 1/100th share of
Preferred Stock 33.00 150 4.55 10
Maxtor
Corporation 01/27/88 DE 1 share of
Common Stock 11.88 50 4.21 10
Maxwell
Laboratories,
Inc. 06/20/89 DE 1/2 share
Common Stock 16.75 32.50 1.94 10
Maxxam Inc. 11/30/89 DE 1 share of class
A Preferred Stock
(Series A Right);
1/100th share of
Class B Junior
Participating
Preferred Stock
(Series B Right) 45.50 165 3.63 10
McDonald's
Corporation 12/14/88 DE 1/100 share of
Series A Junior
Participating
Preferred Stock 47.38 250 5.28 10
McDonnell
Douglas Corp. 8/02/90 MD 1/100th share of
Preferred Stock 44.00 200 4.55 10
McGill
Manufacturing
Co. 10/23/89 IN 1 share of
Common Stock 73.13 220 3.01 10
MedChem
Products Inc. 9/24/90 MA 1/100th share of
Preferred Stock 4.63 25 5.40 10
Medical Care
International 07/25/91 DE 1/100th share of
Preferred Stock 58.75 200 3.40
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-<PAGE>
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
The MacNeal-
Schwendler
Corporation 15 days following
20% acquisition or
tender offer. $0.05 prior to 16
days following 20%
acquisition. At 15 days
following
acquisition,
can buy whole
share of
Series A at
$1.00. At 15 days following 20% acquisition, can buy whole
share of Series A at $1.00.
Management
Science
America, Inc. 10 business days
following 25%
acquisition; 10
business days following
tender offer for 25%;
or in the case of a
person beneficially
owning 25% or more as of
the date of the Rights
Agreement, 10 business
days following an
additional 1% or more
purchase by that person. $0.01 on or prior
to the 10th day
following the Shares
Acquisition Date, and
may be reinstated in
Acquiror reduces
beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void.
Manufacturers
Hanover
Corporation 10 days following
15% acquisition; a
date fixed by the
Board (not more than
19 days) following a
tender offer for 30%. $0.01 prior to the
10th day following
15% acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Acquiror's Rights become void.
Manufactures
National Corp 10 days following
15% acquisition or
tender offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Marietta
Corporation 10 days following
20% acquisition,
tender offer for 30%
or declaration of an
"Adverse Person". $0.01 prior to 10th
day following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Marion
Laboratories,
Inc. 10th business day
following 20%
acquisition or 10th
business day following
tender offer for 20%. $0.01 prior to 10
business days following
the Stock Acquisition
Date and may be
reinstated if Acquiror
reduces beneficial
ownership to 10%
or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership or
1% event. Acquiror's rights become void.
Marquest
Medical
Products Inc. 10th day following
15% acquisition or 15%
tender offer. $0.01 prior to 10th
day following 15%
acquisition. Standard Standard
Marriott
Corporation 10 days following
20% acquisition or
10 business days
following 30% tender
offer $0.01 prior to 10
days following 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Marsh &
McLennan
Companies,
Inc. 10 days following
15% acquisition or
tender offer for 15%. NA NA NA
Marsh
Supermarkets,
Inc. 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to
tenth day following
20%. Standard Standard; also triggered by 20% beneficial ownership.<PAGE>
Matlack
Systems, Inc. 10 days following
20% acquisition or
tender offer for 20%. $0.01 prior to 10th
day following
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Mattel Inc. 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
Mattel Inc. 10 days following
20% acquisition or
tender offer for 20% $0.01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
Maxtor
Corporation 10 days following 20%
acquisition or tender
offer for 25%. $0.01 prior to 10
days following the
Stock Acquisition
Date. Standard Standard; also triggered by 25% beneficial ownership.
Maxwell
Laboratories,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 10th
day following
acquisition. Standard Standard; also triggered by 20% beneficial ownership or
1% event.
Maxxam Inc. 10 days following 15%
acquisition or 10
business days following
15% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership
except pursuant to Permitted Offer or by 1% event.
McDonald's
Corporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 1% event. Acquiror's Rights
become void.
McDonnell
Douglas Corp. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
McGill
Manufacturing
Co. 15% acquisition or 10
days following 15%
tender offer. $0.01 prior to Stock
Acquisition Date. Standard
other than
in the case
of Permitted
Offer Standard; also triggered by 15% beneficial ownership.
MedChem
Products Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to Stock
Acquisition Date.
Can be reinstated if
Beneficial Ownership
falls below 10% Standard Standard
Medical
Care
International 10 days following 15%
Acquisition or tender
offer for 15% $0.01 prior to 10%
Stock Acquisition
date can be registered
if Beneficial ownership
falls below 10% Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Medical
Imaging
Centers of
America 10/02/91 CA 1/100th share of
Preferred Stock 5.13 35 6.83 10
Melamine
Chemicals
Inc. 11/05/90 DE 1/100th share of
Preferred Stock 6.50 30 4.62 1
Mellon Bank
(4) 08/15/89 PA 1/100 share of
Participating
Preferred Stock 35.75 200 5.59 10
Mercantile
Bancorporation
Inc. 05/23/88 MO 1/100 share of
Series A Junior
Participating
Preferred Stock 25.38 100 3.94 10
Mercer
International
Inc. 08/18/93 WA 1/100th share of
Preferred Stock 11 75 6.82 10<PAGE>
Merchants
National
Corporation 06/21/88 IN 1/100th share of
Series A Junior
Preferred Stock 24.88 90 3.62 10
Meridian
Bancorp, Inc. 07/25/89 PA 1/100th share of
Series C Junior
Participating
Preferred Stock 23.875 85 3.56 5
Merry-Go-
Round-
Enterprises 09/20/91 MD 1/100th Share of
Preferred Stock 14.63 56 3.83 10
MI National
Corporation 04/19/88 MI 1/100th share of
Series B Junior
Participating
Preferred Stock 46 170 3.70 10
Microage (4) 02/23/89 DE 2/3 share of
Common Stock 6.75 30 4.44 10
Micropolis
Corporation 05/18/89 DE 1 share of
Common Stock 6.375 40 6.27 10
Midlantic
Corp. 02/23/90 NJ 1/100th Share of
Series B Junior
Participating
Preferred Stock
without par value. 21.25 125 5.88 10
Milestone
Properties Inc.03/31/93 DE 1/100th Share of
Preferred Stock 4.75 15 3.2 10
Millipore
Corporation 04/15/88 MA 1 share of
Common Stock 38 160 4.21 10
Milton Roy
Company 04/28/89 PA 1/1000th share of
Preferred Stock 13.25 55 4.15 10
Minerals
Technologies
Inc. 10/16/92 DE 1/100th Share of
Preferred Stock NA 65 N/A 10
Minnetonka
Corporation 02/25/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 12.00 40 3.33 10
Mission
Resource
Partners L.P. 12/31/89 DE 1 unit of limited
partner interests 12.75 40 3.14 10
Molecular
Genetics, Inc. 01/19/88 MN 1/2 share of
Common Stock 4.13 12 2.91 10
Monsanto
Company 10/26/90 DE 1/100th share of
Series A Junior
Participating
Preferred Stock. 106.00 450 4.25 10
Moore
Corporation
Ltd. 01/18/90 ON 1 share of
Common Stock NA 120(Cdn.) NA 10
Moore
Medical Corp. 03/09/89 DE 1/100th share of
Series I Junior
Participating
Preferred Stock 12.88 75 5.82 10
Morgan
Products Group 03/15/89 DE 1 share of
Common Stock 15.00 70 4.67 10
Morton
International,
Inc. 01/26/89 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 39.75 175 4.40 10
Motorola, Inc. 11/09/88 DE 1/1000th share of
Series A Junior
Participating
Preferred Stock. 39.25 100 2.55 10
Multimedia,
Inc. 09/06/89 SC 1 share of
Common Stock 105.00 400 3.81 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Medical
Imaging
Centers of
America 10 days following
20% acquisition or
tender offer for 30% $0.01 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard<PAGE>
Melamine
Chemicals Inc. 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to Stock
Acquisition Date Standard Standard
Mellon Bank
(4) 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Mercantile
Bancorporation
Inc. 10 days following 20%
acquisition or tender
offer. $0.01 prior to time
there is an Acquiring
Person. Standard Standard
Mercer
International
Inc. 10 business days
following 25%
acquisition. $0.01 prior to
acquisition. Standard Standard; triggered by 25% beneficial ownership.
Merchants
National
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer for 30%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
Meridian
Bancorp, Inc. 10 days following
19.9% acquisition,
tender offer for 19.9%,
or declaration of an
"Adverse Person." $0.001 prior to 10th
day following
acquisition. Standard Standard; also triggered by 1% event.
Merry-Go-
Round-
Enterprises 10 days following
15% acquisition or
tender offer for 15% $0.01 prior to
Stock Acquisiton
Date Standard Standard
MI National
Corporation 10 days following
20% acquisition or
tender offer for 30%. $0.05 prior to
20% acquisition. Standard;
except rights
flip-over to
acquire number
of shares
equivalent to <PAGE>
exercise price
for the market
price. Standard; except rights flip-in to acquire number of
shares equivalent to exercise price for the market
price.
Microage (4) 10 days following
15% acquisition or
tender offer. $0.01 prior to Stock
Acquisition Date or
following Expiration of
Flip-in right if Acquiror
owns less than 15%. Standard Standard; also triggered by 15% beneficial ownership
except in case of Permitted Offer.
Micropolis
Corporation 10 days following
20% acquisition or
tender offer for 30%. $0.01 prior to 10th day
following 20%
acquisition. Standard Standard; Acquiror's rights become void.
Midlantic
Corp. 10 business days
following 15%
acquisition or 15%
tender offer. $0.01 prior to 10th day
following stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
Milestone
Properties
Inc. 10 days following
20% acquisition. $0.001 prior to 20%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Millipore
Corporation 10 business days
following 20%
acquisition or a
tender offer for 30%. $0.01 prior to the
Expiration Date by
a 2/3 vote of the
Continuing
Directors. Standard Standard; Acquiror's rights become void.
Milton Roy
Company 10 days following
15% acquisition or
20% tender offer. $0.01 prior to the
Flip-in date (Flip-
in rights); $0.01
prior to 10th day
following Stock
Acquisition Date
(Flip-over). May
be redeemed if
Acquiror reduces
ownership to 3%. Standard Standard; also triggered by 20% beneficial ownership.
Minerals
Technologies
Inc. 10 days following
15% acquisition or
tender offer for 30%. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 15%;
Acquiror's Rights become void.
Minnetonka
Corporation 10 days following
20% acquisition or
tender offer for 30%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Mission
Resource
Partners L.P. 10 days following
20% acquisition or
tender offer. $0.001 per Right
prior to 10th day
following Units
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Molecular
Genetics, Inc. 15 days following
20% acquisition or
tender offer for 30%. $0.01 prior to the
10th day following
20% acquisition; may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Monsanto
Company 10 days following
20% acquisition or
10 business days
following 20% tender
offer. $0.01 prior to stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Moore
Corporation
Ltd. 10 business days
following 15%
acquisition or tender
offer or termination/
rejection of Permitted
Bid. $0.01 prior to flip-
in or flip-over event
or following 90%
acquisition by
Permitted Bid. Standard Standard; also triggered by 15% beneficial ownership
other than by Permitted Bid.
Moore Medical
Corp. 10 days following
15% acquisition or
tender offer that
would result in 30%
ownership. NA Standard Standard; Acquiror's Rights become void.
Morgan
Products Group 10 days following
the acquisition of
20% or 10 days
following tender
offer that would
result in 25%
ownership. $0.01 prior to
10 days following
20% acquisition. Standard Standard; Acquiror's Rights become void.
Morton
International,
Inc. 10 days following
20% acquisition or
10 business days
following 20% tender
offer. $0.01 prior to
20% acquisition. Standard Standard; also triggered by 30% beneficial ownership or
1% event.
Motorola,
Inc. 10 days following
20% acquisition or
tender offer for 30%. $0.05 prior to
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Multimedia,
Inc. 10 days following
15% acquisition or
tender offer. $0.01 prior to
acquisition. Standard Standard. <PAGE>
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Murphy
Oil Corp. 12/07/89 DE 1/100th Share of
Participating
Preferred Stock. 40.88 130 3.18 10
NAC
Re Corp. 06/09/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 24.25 85 3.37 10
NBB
Bancorp,
Inc. 11/14/89 DE 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 15.75 60 3.81 10
NBI,
Inc. 01/19/89 DE 1/100th of a share of
Junior Participating
Preferred Stock 1.63 9 5.52 10
NIPSCO
Industries
Inc. 02/27/90 IN 1/100th share of Series
A Junior Participating
Preferred Shares w/out
par value. 17.63 60 3.40 10
NS
Group Inc. 7/30/90 KY NA 10.13 NA NA NA
NWA Inc. 03/27/89 DE 1/100th share of
Participating Cumulative
Preferred Stock 60.00 225 3.75 10
NYNEX Corp. 10/19/89 DE 1/100th share of Junior
Participating
Preferred Stock 79.50 250 3.14 10
Nantucket
Industries,
Inc. 09/06/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock and
a secured note 8.38 25 2.98 10
National
Community
Banks, Inc. 12/19/90 NJ 1/100th share of
Preferred Stock 16.25 100 6.15 10
National
Data Corp. 1/18/91 DE 1/100th share of
Preferred Stock 11.00 45 4.09 10
National
Media 01/03/94 DE 1/100th of Preferred 6.38 40.00 6.27 10
National Penn
Bancshares, Inc. 08/23/89 PA 1/100th share of Series
A Junior Participating
Preferred Stock 42.88 145 3.38 10
National
Realty, L.P. 05/26/89 DE 1 share Common Stock 8.125 40 4.92 10
National
Savings Bank
of Albany 01/02/90 NY 1/100th share of Junior
Participating Preferred
Stock. 28.00 75 2.68 10
Nellcor Inc. 06/11/91 DE 1/1000th Share of
Preferred Stock 19.75 90 4.56 10
Nelson
Holdings 09/19/89 VAN 1 share of Common Stock NA 100
(Cdn.) NA 10
Neutrogena
Corp. 7/23/90 DE 1/100th share of
Preferred Stock 20.75 80 3.86 10
Nevada Power
Company 10/19/90 NV 1/100th share of
Preferred Stock 21.88 10 0.46 10
New England
Critical Care,
Inc. 01/15/88 DE 1 share of Common Stock 17.50 85 4.86 10
New Hampshire
Savings Bank
Corp. 08/15/89 NH 1 share of Common Stock 6.50 35 5.38 10
Newmont
Mining Corp. 8/30/90 DE 1/500th share of
Preferred Stock 44.50 150 3.37 10
Nordson
Corporation 08/26/88 OH 1 share of Common Stock 40.75 200 4.91 09/09/88
Norstan, Inc. 05/18/88 MN 1 share of Common Stock 6.75 25 3.70 10
North American
Mortgage
Company 10/19/92 DE 1/100th share of
Preferred Stock 14.375 70.00 4.87 10
North Fork
Bancorpora-
tion (4) 02/28/89 DE 1/100th share of
Junior Participating
Preferred Stock 18.25 70 3.84 10
Northeast
Bancorp Inc. 8/29/90 CT 1/2 share of Common
Stock 12.13 40 3.30 10
Northern
Trust Corp. 10/17/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 64.75 250 3.86 10
Northrop
Corporation 09/21/88 DE 1 share of Common Stock 30.63 105 3.43 10
North-West
Telecommuni-
cations 12/01/89 NV 1/100th share of Series
B Cumulative Preferred
Stock 40.88 80 1.96 10
Northwest
Illinois
Bancorp Inc. 12/12/90 DE 1/100th share of
Preferred Stock NA 50 NA 10
Northwestern
National Life
Insurance
Company 01/14/88 MN 1/10th share of Series
A Junior Participating
Preferred Stock 25.38 100 3.94 10
Norton Company 02/09/89 MA 1/100th share of Series
A Participating
Cumulative Preferred
Stock 49.75 120 2.41 10
Norwich
Financial
Corp. 11/21/89 DE 1/100th share of Series
A Preferred Stock 9.00 45 5.00 10
Novell Inc. 12/07/88 DE 1/300th share Junior
Participating Preferred
Stock 31.50 150 4.76 10
Novo
Corporation 03/09/88 NY 1/100th share of Series
A Junior Participating
Preference Shares 1.38 8.50 6.16 10
Nowsco Well
Service Ltd. 01/04/90 AB 1 share Common Stock NA 65
(Cdn) NA 10
Nu-kote
Holding 05/18/94 DE 1 Share of Common 16.25 75.00 4.62 10
Numac Oil and
Gas Ltd. 07/28/89 AB 1 share Common Stock 8.375 25.33 3.02 10
Numerica
Financial
Corporation 12/29/88 NH 1 share of Common Stock 9.13 40 4.38 10
ONBAN Corp.
Inc. 09/25/89 DE 1/100th share of Junior
Participating Preferred
Stock 12.38 50 4.04 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Murphy
Oil Corp. 10 days following
15% acquisition. $0.01 prior to 10 days
following Stock
Acquisition Date. Standard Standard; also triggered by 15% beneficial ownership.
NAC
Re Corp. 10 days following
20% acquisition or
tender offer for 30%. $0.05 prior to 10th
day following
20% acquisition. Standard Standard; also triggered by beneficial ownership of 30%;
Acquiror's Rights become void.
NBB
Bancorp, Inc. 10 days following
20% acquisition, 10
business days following
tender offer for 20%,
or following "Adverse
Person" declaration and
10% acquisition. $0.02 prior to
"Adverse Person"
declaration, to 10th
day following Stock
Acquisition Date, or
10th day following
Merger Right
event. Standard Standard; also triggered by 20% beneficial ownership or
"Adverse Person" declaration.
NBI, Inc. 10 business days
following 20%
acquisition or 10
business days following
tender offer of 20%. $0.01 prior to Stock
Acquisition Date. Standard Standard; also
triggered by 20% ownership.
Acquiror's Rights become void.
NIPSCO
Industries
Inc. 10 business days
following 20%
acquisition or 25%
tender offer. $0.01 prior to 10th
day following share
Acquisition Date. Standard Standard; also
triggered by 25% beneficial
ownership.
NS Group Inc. NA NA NA NA
NWA Inc. 10 days following
15% acquisition or
10 business days
following 15% tender
offer. $0.01 prior to
Stock Acquisition
Date. Prohibits
newly-elected board
from redeeming for
180 days after election
if in doing would
facilitate change in
control unless bidder
had given incumbent
board 45 days notice of
proposed insurgent
slate. Standard Standard; also
triggered by 15% beneficial
ownership.
NYNEX Corp. 10 days following 15%
acquisition or 10
business days
following 15% tender
offer. $0.01 prior to
Stock Acquisition
Date. Standard Standard; also
triggered by 15%
beneficial ownership.
Nantucket
Industries,
Inc. 20 days following a
20% acquisition or
20 business days
following a tender
offer for 15%. $0.05 prior to 10
business days
following the Shares
Acquisition Date and
may be reinstated if
no triggering event
has occurred and the
Acquiror reduces
beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also
triggered by 15%
beneficial ownership
or a 1% event.
Acquiror's Rights
become void.
National
Community
Banks, Inc. 10 days following
10.5% acquisition or
tender offer for
10.5%. $0.01 prior to Stock
Acquisition Date
or 10.5%
Acquisition. Standard Standard
National Data
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to
Stock Acquisition
Date Standard Standard
National
Media 10 days following 15%
acquisition $0.001 prior to
acquisition Standard Standard; also
triggered by 15%
beneficial ownership
National Penn
Bancshares,
Inc. 10 business days
following 19.9%
acquisition or tender
offer for 19.9%. $0.001 prior to
10th day following
acquisition. Standard Standard; also
triggered by 15%
beneficial ownership.
National
Realty, L.P. 10 days following 30%
acquisition, tender
offer for 30%, or
declaration of an
"Adverse Person." $0.01 prior to
acquisition or
declaration of an
"Adverse Person." Standard Standard
National
Savings
Bank of
Albany 20 business days
following 20%
acquisition or
tender offer. $0.01 prior to
Stock Acquisition
Date. Includes
shareholder
referendum
provision. Standard Standard; also
triggered by 20%
beneficial ownership.
Nellcor Inc. 10 days following 15%
acquisiton or tender
offer for 15% $0.001 prior to
15% Stock
Acquisiton Date Standard Standard
Nelson
Holdings 10 business days
following 20%
acquisition or
tender offer. $0.01 (Cdn.) up to
10th day following
Stock Acquisition
Date. Standard,
except in
case of
Qualified
Offer Standard; also
triggered by 20%
beneficial ownership
except in case of
Qualified Offer.
Neutrogena
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to
Stock Acquisition
Date can be
reinstated if
Beneficial
Ownership falls
below 15%. Standard Standard
Nevada
Power
Company 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to
Stock Acquisition
Date Standard Standard
New
England
Critical
Care,
Inc. 10 days following 20%
acquisition or tender
offer. $0.01 prior to 20%
acquisition. Standard Standard
New
Hamp-
shire
Savings
Bank
Corp. 10 days following 20%
acquisition or tender
offer. $0.01 prior to 10th
day following
acquisition. Standard Standard
Newmont
Mining
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date Standard Standard
Nordson
Corpora-
tion 20 days following:
(1) 20% acquisition,
(2) Board declaration
of an "Adverse Person" or
(3) Tender offer for 20% $0.01 prior to any
"Flip-in" or "
Flip-over" event. Standard Standard; also
triggered by 25%
beneficial ownership,
Board declaration of
an "Adverse Person,"
a 1% event, or a
person or group making
or attempting to make a
"Control Share
Acquisition" without
complying with the Ohio
Control Share Acquisition
law.
Norstan,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10
days following the
Stock Acquisition
date. Standard Standard; also
triggered by 40%
beneficial ownership.
North
American
Mortgage
Company 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to 10%
acquisition in or
in case of fair
offer. Standard Standard
North
Fork
Bancorpor-
ation (4) 10 days following 20%
acquisition or "Adverse
Person" declaration or 10
business days following 25%
tender Offer. $0.01 prior to tenth
day following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
acquisition or
"Adverse Person"
declaration.
Northeast
Bancorp
Inc. 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to Stock
Acquisition Date Standard Standard
Northern
Trust
Corp. 20 days following 15%
acquisition or 25%
tender offer. $0.01 prior to 20th
day following Stock
Acquisition Date;
may be reinstated
if Acquiror reduces
ownership to 10%. Standard Standard; triggered
by 25% beneficial ownership.
Northrop
Corpor-
ation 10 business days following
20% acquisition or 10
business days following
tender offer for 30%. $0.02 prior to 10
business days
following the Stock
Acquisition Date. Standard Standard; also
triggered by 25%
beneficial ownership
or a 1% event.
Acquiror's Rights
become void.
North-West
Telecom-
munica-
tions 10 days following 18%
acquisition or tender
offer (for Class A or
B Stock) $0.01 prior to 10th
day following
Stock Acquisition
Date. Standard Standard; also
triggered by 18%
beneficial ownership
or by 1% event.
Northwest
Illinois
Bancorp
Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to
Stock Acquisition
Date Standard Standard
North-
western
National
Life
Insurance
Company 15 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 30
days following 20%
acquisition. Standard Standard; also
triggered by 20%
beneficial ownership.
Norton
Company 10% acquisition or tender
offer for 30%. $0.05 prior to the
10th day following
10% acquisition. Standard Standard; also
triggered by 10%
beneficial ownership.
Norwich
Financial
Corp. 10 days following 20%
acquisition, 10% acquisition
and "Adverse Person"
declaration or 20% tender
offer. $0.01 prior to 14th
day following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
beneficial ownership;
Acquiror's Rights
become void.
Novell
Inc. 10 days following 20%
acquisition or up to 65 days
following 30% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; triggered
by 25% acquisition
or by 1% event.
Novo
Corpora-
tion 10 days following 20%
acquisition or tender offer
for 30%. $0.02 prior to 10
days following 20%
acquisition. Standard Standard; also
triggered by 20%
beneficial ownership.
Nowsco
Well
Service
Ltd. 10 days following 15%
acquisition or 15% tender
offer. $0.01 prior to
flip-in event. Standard Standard; also
triggered by 15%
beneficial ownership.
Nu-kote
Holding 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also
triggered by 15%
beneficial ownership
Numac Oil
and Gas
Ltd. 10 days following 10%
acquisition or tender offer. NA Standard Standard; also
triggered by 10%
beneficial ownership.
Numerica
Financial
Corpora-
tion 20 days following 20%
acquisition or tender offer
for 30%. $0.01 prior to the
20th day following
20% acquisition. Standard Standard; also
triggered by 20%
beneficial ownership
or 1% event.
Acquiror's Rights become void.
ONBAN
Corp.
Inc. 10 days following 20%
acquisition or 10 business
days following tender offer
for 25%. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
beneficial ownership.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
ONEOK, Inc. 03/17/88 DE 1/100th share of Series
A Participating
Preference Stock 11.63 50 4.30 10
Oakite
Products,
Inc. 04/29/88 NY 1 share of Common Stock 37.88 90 2.38 10
Oakwood Homes
Corp. 08/23/91 NC 1/200th share of
Preferred Stock 13.75 60 4.36 10
Oceaneering
International
Inc. 11/20/92 DE 1/100th Share of
Preferred Stock 14.25 60 4.2 10
Octel
Communications
Corp. 7/25/90 DE 1 share of Common Stock 19.63 80 4.08 10
Offshore
Pipelines
Inc. 01/28/93 DE 1/200th Share of
Preferred Stock 12.875 55 4.3 10
Ogden 9/20/90 DE 1/100th share of
Preferred Stock 18.63 80 4.29 10
The Ogilvy
Group, Inc. 01/19/89 DE 1 share of Common
Stock 30.75 115 3.74 10
Ohio Casualty
Corp. 12/15/89 OH 1 share of Common Stock 49.75 150 3.02 10
Ohio Edison
Company 10/16/90 OH 1 share of Common Stock 16.63 35 2.10 10
Oklahoma Gas
& Electric Co. 12/11/90 OK 1/100th share of
Preferred Stock 39.38 95 2.41 10
Old Kent
Financial
Corporation 12/19/88 MI 1/100th share of Series
B Preferred Stock 23.63 80 3.39 10
Old National
Bancorp. 01/25/90 IN 1/100th share of Series
A Preferred Stock NA 60 NA 10
The One
Bancorp 05/16/88 ME 1/100th share of Series
A Junior Participating
Preferred Stock 13.63 90 6.61 10
Oneida 12/13/89 NY 1/1000th share of Series
A Preferred Stock 14.63 45 3.08 10
On-Line
Software
Int'l Inc. 8/13/90 DE 1/100th share of
Preferred Stock 6.63 40 6.03 10
Oracle
Systems Corp. 12/03/90 DE 1/1000th share of
Preferred Stock 8.50 60 7.06 10
Orion Capital
Corporation 03/15/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 20.88 80 3.83 10
Orion
Research
Incorporated 04/06/88 1 share of Common Stock 7.25 33.50 4.62 10
Oryx Energy
Co. 9/14/90 DE 1/1000th share of
Preferred Stock 52.75 150 2.84 10
Owens &
Minor, Inc 06/22/88 VA 1/100th share of Series
A Participating
Cumulative Preferred
Stock 13.50 75 5.56 10
PACCAR, Inc. 12/21/89 DE 1/1000th share of
Participating Preferred
Stock 42.00 150 3.57 10
P&F Industries,
Inc. 06/16/89 DE 1/100th share of Series
A Participating Preferred
Stock 3.188 50 15.6810
PHH
Corporation 01/17/89 MD 1/100th share of Series
A Junior Participating
Preferred Stock 33.38 120 3.54 10
PHP Healthcare
Corp. 04/10/92 DE 1/1000th share of
Preferred Stock 17.25 85.00 4.93 10
PLM Inter-
national 03/23/89 DE 1 share of Common Stock 9.38 30 3.20 10
PSI Resources
Inc. 12/11/92 DE 1/1000th Share of
Preferred Stock 18.5 55 3.0 10
Pace Membership
Warehouse 02/23/88 CO 1 share of Common Stock 5.75 30 5.22 10
Pacific
Enterprises 03/07/89 CA 1 share of Common Stock 41.50 150 3.61 10
Pacific
Scientific
Company 11/08/88 CA 1/100th share of Series
A Junior Participating
Preferred Stock 11.25 45 4.00 10
Pacific Telesis
Group 09/22/89 NV 1/100th share of Series
A Participating
Preferred Stock 45.63 150 3.29 10
Pall
Corporation 11/17/89 NY 1 share of Common Stock 29.5 80.00 2.71 10
Pansophic
Systems,
Incorporated 04/18/88 IL 1 share of Common Stock 17.63 85 4.82 10
Par
Pharmaceutical 01/08/90 NJ 1 share of Common Stock 6.25 25 4.00 10
Paradyne
Corporation 08/03/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 5.75 25 4.35 10
Park Electro-
chemical Corp. 02/02/89 NY 1/100th of a share of
Series A Preferred Stock 15.38 60 3.90 10
Parker &
Parsley
Petroleum Co. 1/31/91 DE NA NA NA NA NA
Patrick
Petroleum
Company 03/04/88 DE 1/100 share of Series A
Preferred Stock 4.25 30 7.06 10
Paul Mueller
Company 1/29/91 MI 1 share of Common Stock NA 125 NA 10
Payless
Cashways, Inc. 05/13/88 IA 1/100th share of Series
A participating Preferred
Stock 19.25 70 3.64 10
Pegasus Gold,
Inc. 12/02/88 BC 1/100th share of Class A
Preferred Stock 13.50 55 4.07 10
Pennwalt
Corporation 03/01/88 PA 1/100th share of Fourth
Series Participating
Preference Stock 53.75 225 4.19 10
Pennzoil
Company 04/07/88 DE 1/100th share of Series
A Participating
Preferred Stock 76.25 225 2.95 5
Perini Corp. 09/23/88 MA 1/100th share of Series
A Junior Participating
Cumulative Preferred
Stock NA 100 NA 10
Perkin-Elmer
Corporation 04/21/89 NY 1/100th share of
Participating
Preferred Stock 24.75 90 3.64 10
Perpetual
Financial
Corporation 10/13/88 DE 1/100th share of
Series B Participating
Preferred Stock 8.63 39 4.52 10
Phelps Dodge
Corporation 07/29/88 NY 1/100th share of Junior
Participating Cumulative
Preferred Stock 40.00 145 3.63 10
Philadelphia
Suburban
Corporation 02/19/88 PA 1/100th share of Series
A Junior Participating
Preferred Stock 16.50 70 4.24 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
ONEOK, Inc. 20% acquisition or 10
days following 20%
tender offer. $0.01 prior to 20%
acquisition, and
thereafter under
certain
circumstances. Standard Standard; also
triggered by 20%
beneficial ownership.
Oakite
Products, Inc. 10 days following 15%
acquisition or tender
offer for 30%. $0.01 prior to 10
days following the
Shares Acquisition
Date. Standard Standard; also
triggered by 30%
beneficial ownership;
Acquiror's Rights become
void.
Oakwood Homes
Corp. 10 days following 20%
acquisition or tender
offer for 20% $0.01 prior to
following the Shares
Acquisiton Date Standard Standard
Oceaneering
International
Inc. 10 days following 15%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also
triggered by
beneficial ownership
of 15%; Acquiror's
Rights become void.
Octel
Communications
Corp. 10 days following 21%
acquisition or tender
offer for 21%. $0.01 prior to Stock
Acquisition Date Standard Standard
Offshore
Pipelines Inc. 10 days following 20%
acquisition. $0.01 prior to
acquisition. Standard Standard; also
triggered by
beneficial ownership
of 20%; Acquiror's Rights
become void.
Ogden 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to
Stock Acquisition
Date Standard Standard
The Ogilvy
Group, Inc. 10 days following 20%
acquisition or 10
business days following
20% tender offer $0.01 prior to 10
days following 20%
acquisition. Standard Standard
Ohio Casualty
Corp. 10 days following 20%
acquisition or tender
offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
beneficial ownership.
Ohio Edison
Company 10 days following 15%
acquisition or tender
offer for 25%. $0.001 prior to
Stock Acquisition
Date Standard Standard
Oklahoma Gas &
Electric Co. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to
Stock Acquisition
Date Standard Standard
Old Kent
Financial
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer for 25%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 25%
beneficial ownership.
Old National
Bancorp. 10 days following 20%
acquisition or 10
business days following
20% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard
The One
Bancorp 10 business days
following 20%
acquisition or tender
offer for 30% or Board
determination of an
"Adverse Person" with
10% acquisition. $0.03 prior to the
10th business day
following the Stock
Acquisition Date; may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights become
void. Standard; also
triggered by
beneficial ownership
of 25%; Acquiror's
Rights become void.
Oneida 10 days following 20%
acquisition or 10
business days following
30% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
beneficial ownership or
by 1% event.
On-Line
Software
Int'l Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Oracle
Systems Corp. 10 days following 20%
acquisition or tender
offer for 20%. $0.001 prior to Stock
Acquisition Date Standard Standard
Orion Capital
Corporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; Acquiror's
Rights become void.
Orion Research
Incorporated 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the
10th business day
following 20%
acquisition or tender
offer for 20%. Standard;
except
triggered
by a merger
with a 30%
beneficial
owner. Standard; Acquiror's
Rights become void.
Oryx Energy
Co. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Owens &
Minor,
Inc 10 days following 20%
acquisition or 10 business
days following tender offer
for 30%. $0.01 prior to 10
days following the
Stock Acquisition
Date. Standard Standard; also
triggered by 30%
beneficial ownership;
Acquiror's Rights
become void.
PACCAR,
Inc. 10 days following 10%
acquisition or 10 business
days following 10% tender
offer. $0.01 prior to Stock
Acquisition Date. Standard Standard; also
triggered by 10%
beneficial ownership.
P&F
Industries,
Inc. 10 days following 20%
acquisition or tender
for 20%. $0.01 prior to 10th
day following
acquisition. Standard Standard
PHH
Corpora-
tion 20 days following 20%
acquisition or tender
offer for 20%. $0.05 prior to 20%
acquisition. Standard Standard
PHP
Healthcare
Corp. 10 days following 15%
acquisition or tender offer
for 15% $.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
PLM
Interna-
tional 15 days following 36%
acquisition or 20% tender
offer or 20% acquisition
and "Adverse Person"
declaration. $0.01 prior to Stock
Acquisition Date. Standard Standard; triggered
by existence of
Acquiring Person or
"Adverse Person" declaration.
PSI
Resources
Inc. 10 days following 20%
acquisition. $0.01 prior to
acquisition. Standard Standard; also
triggered by beneficial
ownership of 20%;
Acquiror's Rights become void.
Pace
Membership
Warehouse 10 days following 20%
acquisition or tender offer. $0.01 prior to Stock
Acquisition Date or
following Stock
Acquisition Date if
Acquiror reduces
ownership below
20%. Standard Standard; also
triggered by 20%
beneficial ownership.
Pacific
Enter-
prises 10 business days following
20% acquisition or tender
offer. $0.001 prior to 10
business days
following Stock
Acquisition Date. Standard Standard; also
triggered by 20%
beneficial ownership.
Pacific
Scientific
Company 20 days following 25%
acquisition or tender offer
for 35%. $0.01 prior to the
20th day following
25% acquisition. Standard Standard
Pacific
Telesis
Group 20% acquisition, declaration
of an "Adverse Person," or
10 days following tender
offer. $0.01 prior to
acquisition or
declaration of an
"Adverse Person." Standard Standard; also
triggered by 20%
beneficial ownership.
Pall
Corpora-
tion 10 days following 20%
acquisition or tender offer
for 20% $.0044 prior to
20% acquisition in
or in case of fair
offer. Standard Standard
Pansophic
Systems,
Incorporat-
ed 10 days following 20%
acquisition or tender offer
for 30%. $0.03 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 33 %
beneficial ownership;
Acquiror's Rights become
void.
Par
Pharma-
ceutical 10 days following 15%
acquisition or 10 business
days following 15% tender
offer. $0.01 prior to 10th
day following Stock
Acquisition Date;
may be reinstated if
Acquiror reduces
ownership to 10%. Standard Standard; triggered
by 25% beneficial ownership
or by 1% event.
Paradyne
Corpora-
tion 10 business days following
20% acquisition; 10
business days following
tender offer for 25%; or 10
business days after a 15%
beneficial ownership by an
"Adverse Person." $0.01 prior to 10
business days
following the Stock
Acquisition Date and
may be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also
triggered by 25%
beneficial ownership
or an "Adverse Person."
Acquiror's Rights
become void.
Park
Electro-
chemical
Corp. 20 days following the
earlier of the acquisition
of 30% or the tender offer
for 20% or more. $0.01 prior to the
Distribution Date or
$0.03 on or within
10 days subsequent
to the Distribution
Date. Standard Standard; Acquiror's Rights
become void.
Parker &
Parsley
Petroleum
Co. NA NA NA NA
Patrick
Petroleum
Company 10 days following 20%
acquisition or tender offer
for 30%. $0.02 prior to 20%
acquisition. Standard Standard
Paul
Mueller
Company 10 days following 20%
acquisition or tender offer
for 20%. $0.01 prior to Stock
Acquisition Date can
be reinstated if
Beneficial Ownership
falls below 20% Standard Standard
Payless
Cashways,
Inc. 20% acquisition or 10 days
following tender offer
for 20%. $0.01 prior to person
becoming Acquiring
Person. Standard Standard
Pegasus
Gold,
Inc. 10 days following 20%
acquisition or tender offer
for 20%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; Acquiror's
Rights become void.
Pennwalt
Corpora-
tion 10 days following 20%
acquisition or tender offer
for 30%. $0.01 prior to 30%
beneficial ownership.
May, though, only
redeem after 20%
acquisition if a
majority of the Board
is Disinterested. None Standard; also
triggered by 30%
beneficial ownership.
Pennzoil
Company 10 days following 20%
acquisition or 10 business
days following a tender offer
for 30%. $0.05 prior to 15 days
following the Stock
Acquisition Date. Standard Standard; also
triggered by 30%
beneficial ownership;
Acquiror's Rights
become void.
Perini
Corp. 10 days following 20%
acquisition, 20% tender
offer or 10% "Adverse
Person." $0.02 prior to
declaration of
"Adverse Person" or
10 days following
"Stock Acquisition
Date." Standard Standard; also
triggered by 20%
beneficial ownership
or 10% "Adverse Person."
Perkin-
Elmer
Corpora-
tion 10 days following 20%
acquisition; the first date
of public announcement that
an acquiring person has
become such. $0.01 prior to
acquisition. Standard Standard; Acquiror's
Rights become void.
Perpetual
Financial
Corpora-
tion 20% acquisition or 10 days
following tender offer for
20%. $0.01 prior to
20% acquisition. Standard Standard; also
triggered by 20%
beneficial ownership;
Acquiror's Rights
become void.
Phelps
Dodge
Corpora-
tion 10 business days following
20% acquisition or 10
business days following
tender offer for 20%. $0.01 prior to 10
business days
following the Stock
Acquisition Time
and may be reinstated
if the Acquiror
reduces beneficial
ownership to 5% or
less. Standard Standard; also
triggered by 20%
beneficial ownership
or 1% event.
Phila-
delphia
Suburban
Corpora-
tion 10 days following 25%
acquisition or not later
than 65 days following tender
offer for 30%. $0.02 prior to 10
days following the
Stock Acquisition
Date. Standard;
also
provision
to surrender
Rights for 1/2
the value
otherwise
purchasable. Standard; also
triggered by 25%
beneficial ownership.
Provision to surrender
Rights for 1/2 the
value otherwise
purchasable.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Phillips
Petroleum
Company 07/10/89 DE 1/100th share Series
B Junior Participa-
ting Preferred
Stock 23 75 3.26 10
Pic 'N' Save
Corporation 03/16/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 15.38 80 5.20 10
Picturetel
Corp. 03/25/92 DE 1/100th share of
Preferred Stock 44.75 60.00 1.34 6
Piedmont
Federal Corp. 7/23/90 DE 1/100th share of
Preferred Stock NA 24 NA 10
Pinkerton's
Inc. 07/12/91 DE 1/100th Share of
Preferred Stock 28.75 90 3.13 10
Pinnacle West
Capital (4) 03/27/89 AZ 1/100th share of
Series A Participa-
ting Preferred
Stock 13.75 60 4.36 10
Pioneer
Financial
Services Inc. 11/30/90 DE 1 share of
Preferred Stock 5.50 45 0.91 10
Pioneer
Hi-Bred
International,
Inc. 04/07/89 IA 1 share of Common
Stock 37.25 100 2.68 10
Pioneer-
Standard
Electronics,
Inc. 04/25/89 OH 1 share Common
Stock 9.375 40 4.27 10
Placer Dome 01/05/90 CAN 1 share of Common
Stock NA 90
(Cdn.) NA 10
Plains
Petroleum
Corporation 05/12/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 24.75 100 4.04 10
Platinum
Software 03/09/94 DE 1/100th of
Preferred 11.50 70.00 6.09 10
Pneumatic
Scale 07/27/89 MA 1/2 share Common
Stock 29.50 30 1.02 10
PolyMedica
Industries
Inc. 03/13/92 MA 1/100th share of
Preferred Stock 12.25 90.00 7.35 10
Pool Energy
Services 06/07/94 TX 1/3 Share of Common 8.88 9.00 1.01 10
Porta Systems 03/22/89 DE 1/100th share of
Junior Participating
Preferred Stock 12.00 35 2.92 10
Postal Instant
Press, Inc. 02/18/88 DE 1 share of Common
Stock 15.75 NA NA The earlier
Pratt &
Lambert, Inc. 02/01/89 NY 1 share of Common
Stock 15.13 50 3.30 10
Precision
Castparts
Corp. 11/01/88 OR 1/100th share of
Series A No Par
Serial Preferred
Stock 33.50 135 4.03 10
Preferred
Entertain-
ment 05/30/94 DE 1 Share of Common 22.75 120.00 5.27 10
Premark
International
Inc. 03/07/89 DE 1 share of Common
Stock 32.63 125 3.83 10
Premier
Bancorp, Inc. 01/19/89 LA 1 share of Common
Stock 4.75 20 4.21 10
Preston
Corporation 02/09/89 MD 1/100th of a share
of Series A
Participating
Preferred Stock 16.00 50 3.13 10
Primark
Corporation 01/12/88 MI 1 share of Common
Stock 18.88 66 (1) 3.50 10
Prime
Computer,
Inc. 10/03/88 DE 1 share of Common
Stock 14.88 65 4.37 10
Progress
Financial
Corp. 04/25/90 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 7.25 40 5.52 10
Proler
International
Corp., Inc. 10/14/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 62.50 200 3.20 10
Property
Capital
Trust 9/28/90 MA 1 share of Common
Stock 7.63 27 3.54 10
The Prospect
Group, Inc. 12/12/88 DE 1/100th share of
Series A Special
Stock 9.75 30 3.08 10
Public Service
Co. of CO 2/26/91 CO 1 share of Common
Stock 22.75 55 2.42 10
Publicker
Industries
Inc. 08/09/88 PA 1/100th share of
Class A Preferred
Stock 2.00 7.50 3.75 10
Puget Sound
Bancorp 12/20/88 WA 1/100th share of
Series A Junior
Participating
Preferred Stock 19.25 65 3.38 10
Puget Sound
Power & Light
Co. 1/15/91 WA 1/1000th share of
Preferred Stock 20.50 45 2.20 10
Puritan-Bennett
Corporation 05/03/89 DE 1/2 share of Common
Stock 22.25 45 2.02 10
Purolator
Products Co. 12/01/92 DE 1/100th share of
Preferred Stock NA 42 NA 10
QED
Exploration,
Inc. 08/21/89 CO 1 share of Common
Stock 2.00 4 2.00 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Phillips
Petroleum
Company 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also
triggered by 20%
beneficial ownership.
Pic 'N' Save
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 20%
acquisition, and
thereafter under
certain
circumstances. Standard Standard
Picturetel
Corp. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Piedmont
Federal Corp. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Pinkerton's
Inc. 10 days following 15%
acquisition or tender
offer for 20% $0.01 prior to Stock
Acquisiton Date or
in case of fair
offer Standard Standard
Pinnacle
West
Capital (4) 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to Stock
Acquisition Date or
in case of fair
offer. Standard Standard; also
triggered by 20%
beneficial ownership
except in case of
fair offer, or by 1%
event.
Pioneer
Financial
Services Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date can
be reinstated if
Beneficial Ownership
falls below 10%. Standard Standard
Pioneer
Hi-Bred
International,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also
triggered by 20%
beneficial ownership.
Pioneer-
Standard
Electronics,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to
acquisition. Standard Standard; Acquiror's
Rights become void.
Placer Dome 10 days following 15%
acquisition or tender
offer. $0.001 prior to
flip-in event or
within four months
following Permitted
Bid if Acquiror
acquires 90%. Standard Standard; also
triggered by 15%
beneficial ownership
except in case of
Permitted Bid.
Plains
Petroleum
Corporation 10 business days
following 20%
acquisition or tender
offer for 30%. $0.01 prior to the
10th business day
following the Stock
Acquisition Date. Standard Standard; also
triggered by beneficial
ownership of 30%; Acquiror's
Rights become void.
Platinum
Software 10 days following 20%
acquisition $0.01 prior to
acquisition Standard Standard; also
triggered by 20%
beneficial ownership
Pneumatic
Scale 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to 10th
day following 20%
acquisition. Standard Standard; also
triggered by
beneficial ownership of 30%.
PolyMedica
Industries
Inc. 10 days following 15%
acquisition or tender
offer for 15% $.01 prior to 10%
acquisition in or
in case of fair
offer. Standard Standard
Pool Energy
Services 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also
triggered by 15%
beneficial ownership
Porta Systems 10 business days
following 30%
acquisition or tender
offer. $0.01 prior to 10th
business day
following Stock
Acquisition Date. Standard Standard; also
triggered by 30%
beneficial ownership
except in case of
Permitted Offer.
Postal
Instant Press,
Inc. 20% acquisition, or,
in the case of an
existing 20% holder at
2/18/88, acquisition of
an additional 1%. $0.02 prior to the
earlier of 08/18/88,
60 days after the
Exercisability Date,
or immediately prior
to the consummation
of any merger or
consolidation. For each
Right, may
purchase 1
share of
common
Stock for
$1. For each Right,
may purchase 1
share of Common
Stock for $1.
Pratt &
Lambert,
Inc. 10 days following 20%
acquisition or 10
business days following
tender offer for 20%. $0.01 prior to 10
days following the
Stock Acquisition
Date. Standard Standard; also
triggered by 25%
beneficial ownership.
Acquiror's Rights
become void.
Precision
Castparts
Corp. 10 days following 20%
acquisition, tender offer
for 30%, or after a person
is declared an "Adverse
Person." $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 30%
beneficial ownership.
Preferred
Entertain-
ment 10 days following 25%
acquisition $0.01 prior to
acquisition Standard Standard; also
triggered by 25%
beneficial ownership
Premark
Inter-
national Inc. 10 days following 20%
acquisition or tender
offer for 20%. 0.01 prior to 20%
acquisition. Standard Standard; also
triggered by 30%
beneficial ownership
of 1% event. Acquiror's
Rights become void.
Premier
Bancorp, Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 20%
beneficial ownership
or 1% event. Acquiror's
Rights become void.
Preston
Corporation 10 days following 20%
acquisition or 10
business days following
tender offer which results
in 20% ownership. $0.01 prior to Shares
Acquisition Date. Standard Standard; Acquiror's
Rights become void.
Primark
Corporation 20% acquisition of
voting shares or a tender
offer for 30% of voting
shares. $0.05 prior to 10th
day following 20%
acquisition and may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also
triggered by 20%
beneficial ownership.
Acquiror's Rights become void.
Prime
Computer,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 10%
beneficial ownership.
Acquiror's Rights become
void.
Progress
Financial
Corp. 10 business days following
20% or more acquisition
or 20% tender offer. $0.01 prior to 10
days following
Stock Acquisition
Date. Standard Standard
Proler
International
Corp., Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 20%
beneficial ownership.
Property
Capital Trust 10 days following 9.8%
acquisition or tender
offer for 9.8%. $0.01 prior to Stock
Acquisition Date Standard Standard
The Prospect
Group, Inc. 10 days following 25%
acquisition or tender
offer for 30%. $0.05 prior to the
10th day following
25% acquisition. Standard Standard
Public Service
Co. of CO 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Publicker
Industries
Inc. 10th day following 20%
acquisition or 10th day
following tender offer
for 30%. $0.01 on or prior
to 10th day
following the
Stock Acquisition
Date and may be
reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also
triggered by 30%
beneficial ownership
or 1% event. Acquiror's
rights become void.
Puget Sound
Bancorp 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also
triggered by 25%
beneficial ownership
or 1% event. Acquiror's
Rights become void.
Puget Sound
Power & Light
Co. 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to Stock
Acquisition Date can
be reinstated if
Beneficial Ownership
falls below 10%. Standard Standard
Puritan-Bennett
Corporation 20% acquisition or 10
days following tender
offer. $0.01 prior to
acquisition, or
expiration of the
rights. Standard Standard; also
triggered by 20%
beneficial ownership.
Purolator
Products Co. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 on or prior to
10th day following
the Stock Acquisition
Date and may be
reinstated if Acquiror
reduces beneficial
ownership to 10% or
less. Standard Standard; also
triggered by 20%
beneficial ownership.
QED Exploration,
Inc. Following 20%
acquisition. $0.01 prior to 20%
acquisition. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Quadra Logic
Technology
Inc. 03/17/92 CAN 1 share of Common
Stock 7.125 50.00 7.02 10
Quaker Chemical
Corp. 02/07/90 PA 1/100th share of
Series A Preferred
Stock 13.67 72 5.27 10
Qualmed Inc. 09/09/93 DE 1/1000th share of
Preferred Stock 14.38 50.00 3.48 10
Quest Medical 10/13/89 TX 1/2 Share of Common
Stock 2.38 10 4.20 10
Quixote
Corporation 07/15/88 DE 1/100th share of
Series A Junior
Participating
Preferred Stock 7.5 25 3.33 10
R.G. Barry
Corporation 02/29/88 OH 1/10th share of
Series I Junior
Participating Class
B Preferred Stock 5.25 20 3.81 10
RJR Nabisco,
Inc. 07/21/88 DE 1/100th share of
Series D Participating
Cumulative Preferred
Stock 49.63 200 4.03 10
RLC Corp. 06/14/89 DE 1 share Common
Stock 8.75 60 6.86 10
Ransburg
Corporation 04/28/88 IN 1/100th share of
Series A Junior
Preferred Stock 11.50 40 3.48 10
Raven
Industries 03/16/89 SD 1 share of Common
Stock 10.50 74 7.05 10
Raychem
Corporation 02/03/89 DE 1/100th share of
Series A Participa-
ting Cumulative
Preferred Stock 35.00 150 4.29 10
Realist, Inc. 08/29/88 DE 1 share of Common
Stock 11.50 35 3.04 10
Recognition
Equipment Inc. 09/18/92 DE 1/100th share of
Preferred Stock 11.25 60.00 5.33 10
Reebok
International
LTD. 6/14/90 MA 1 share of Common
Stock 18.00 60 3.33 10
Regency
Cruises Inc. 09/18/90 DE 1/5th share of
Common Stock 1.59 6.50 4.09 10
Regional
Bancorp 01/18/90 DE 1/100th share of
Junior Participating
Cumulative Preferred
Stock. 15.00 56 3.73 10
Rehabcare
Corporation 09/21/92 DE 1/100th share of
Preferred Stock 8.5 35.00 4.12 10
Republic
Automotive
Parts Inc. 06/18/92 DE 1/100th share of
Preferred Stock 7.5 24.00 3.20 10
Republic
Capital Group
Inc. 04/25/90 WI 1 share of Common
Stock 15.44 60 3.89 10
Research
Frontiers Inc. 02/12/93 DE 1 Share of Common
Stock 9.38 45 4.8 10
Rexene
Corporation 01/26/93 DE 1 Share of
Common Stock 3.75 25 6.7 10
Reynolds and
Reynolds Co. 05/06/91 OH 1/1000th Share of
Preferred Stock 20.88 80 3.83 10
Richton
International
Corporation 01/26/88 DE 1/100th share of Series
A Preferred Stock 3.13 14 4.47 10
Rio Algom
Limited 07/22/92 ON 1 share of
Common Stock 14.188 75.00 5.29 10
Robert
Half
Int'l Inc. 7/23/90 DE 1/100th share of
Preferred Stock 15.00 65 4.33 10
Rodman &
Renshaw
Capital
Group Inc. 08/23/93 DE 1 share of Common
Stock 7.88 30.00 3.81 10
Rollins
Environmental
Services,
Inc. 06/14/89 DE 1 share Common Stock 11.75 200 17.02 10
Rowan
Companies
Inc. 02/25/92 DE 1/100th share of
Preferred Stock 6.25 30.00 4.80 10
Ruddick
Corp. 11/15/90 NC 1/100th share
Preferred Stock 21.00 105 5.00 10
Ryder
System,
Inc. 07/28/89 FL 1/100th share Series
Cumulative Preferred
Stock 29.25 150 5.13 10
SEI
Corporation 12/19/88 PA 1/400th share of Junior
Participating
Preferred Stock 17.50 65 3.71 10
SPS
Technologies 11/11/88 PA 1/100th share of Series
A Junior Participating
Preferred Stock 42.88 125 2.92 10
SPX
Corporation 10/19/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 36.88 NA NA 10
Sage
Software 08/18/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 7.25 40 5.52 10
Sanderson
Farms, Inc. 04/25/89 MS 1/100th share of Series
A Participating
Preferred Stock. 16.25 53 3.26 10
Sanifill
Inc. 12/13/91 DE 1/300th share of
Preferred Stock 15.625 100.00 6.40 10
Santa
Anita
Realty 06/15/89 DE 1/100th share of Junior
Participating
Preferred Stock 29.88 100 3.35 10
Santa Fe
Energy
Resources
Inc. 9/13/90 DE 1/100th share of
Preferred Stock 21.38 40 1.87 1
Sara
Lee
Corporation 04/28/88 MD 1/100th share of Series
A Junior Participating
Preferred Stock 39.75 140 3.52 10
Sea
Containers
Ltd. 05/09/88 BER 1/100th share Junior
Participating
Preferred Stock 22.00 110 5.00 10
Seagull
Energy
Corp. (4) 03/01/89 TX 1/100th share Series
B Junior Participating
Preferred Stock 17.25 61.50 3.57 10
Security
Bancorp 11/28/89 MI 1/100th share of
Preferred Stock 21.25 75 3.53 10
Security
Investments
Group 10/03/89 DE 1/100th share of Junior
Participating
Preferred Stock 6.25 22 3.52 10
Security
Pacific
Corporation 05/17/88 DE 1/100th share of Series
E Junior Participating
Preferred Stock 34.38 125 3.64 10
Sensormatic
Electronics
Corporation 05/18/89 DE 1/100th share of Series
A Cumulative Participating
Preferred Stock 12.375 40 3.23 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Quadra
Logic
Technology
Inc. 10 days following
20% acquisition or
tender offer
for 20% $0.001 prior to 20%
acquisition in or
in case of
fair offer. Standard Standard
Quaker
Chemical
Corp. 10 days following
20% acquisition,
10 business days
following 20% tender
or greater than 10%
beneficial ownership
deemed "Adverse
Person." $0.01 prior to
Stock
Acquisition Date. Standard Standard; also triggered by greater than 10% "Adverse
Person."
Qualmed
Inc. 10 business days
following
10% acquisition. $0.01 prior
to acquisition. Standard Standard; triggered by 10% beneficial ownership.
Quest
Medical 10 days following
15% acquisition
or 20% tender
offer. $0.01 prior to
10th day following
15% acquisition. Standard Standard; triggered by 20% beneficial ownership or 1% event
except in case of qualifying offer or Permitted Transaction.
Quixote
Corporation 10 business days
following 20%
acquisition or
tender offer
for 30%. $0.01 prior to the
10th business day
following
20% acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
R.G.
Barry
Corporation 20% acquisition or
a tender offer for
20% of voting shares
of corporation. $0.02 per Right prior
to close of business
on Stock Acquisition
Date. Standard Standard; also triggered by 30% beneficial ownership.
RJR
Nabisco,
Inc. 10 days following
20% acquisition or
10 days following
tender offer
for 30%. $0.05 prior to the
10th day following
20% acquisition; may
be reinstated if
Acquiror reduces bene-
ficial ownership to
10% or less. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
RLC Corp. 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to 10th
day following
acquisition. Standard Standard
Ransburg
Corporation 20 days following
20% acquisition or
20 business days
following tender
offer for 30% or
Board declaration
that Acquiror is
an "Adverse
Person." $0.01 prior to 20
days following the
Stock Acquisition
Date; may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Not
redeemable if Board
has declared an
"Adverse Person." Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's rights become void.
Raven
Industries 10 days following
20% acquisition
or tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date;
may be reinstated
if Acquiror reduces
beneficial ownership
to 5%. Standard Standard; triggered by beneficial ownership of 30%, 1% event,
or additional acquisition by Acquiror.
Raychem
Corporation 10 days following
15% acquisition or
tender offer
for 20%. $0.01 prior to the
10th day following
15% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Realist,
Inc. 10 days following
15% acquisition or
tender offer
for 20%. $0.01 prior to the
10th day following
15% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Recognition
Equipment
Inc. 10 days following
25% acquisition or
tender offer
for 25% $0.01 prior to 25%
acquisition in or
in case of
fair offer. Standard Standard
Reebok
International
LTD. 10 days following
10% acquisition or
tender offer
for 10%. $0.01 prior to Stock
Acquisition Date Standard Standard
Regency
Cruises
Inc. 10 days following
20% acquisition or
tender offer
for 25%. $0.01 prior to Stock
Acquisition Date can
be reinstated if Bene-
ficial Ownership
falls below 10% Standard Standard
Regional
Bancorp 10 days following
15% acquisition,
10 business days
following 15% tender
offer or following
"Adverse Person"
declaration (10%). $0.02 prior to
"Adverse Person"
declaration or prior
to tenth day fol-
lowing Stock
Acquisition Date. Standard Standard; triggered by 15% beneficial ownership or by "Adverse
Person" declaration.
Rehabcare
Corporation 10 days following
15% acquisition or
tender offer
for 15% $0.01 prior to 15%
acquisition in or
in case of fair
offer. Standard Standard
Republic
Automotive
Parts Inc. 10 days following
15% acquisition or
tender offer
for 15% $0.01 prior to 15%
acquisition in or
in case of
fair offer. Standard Standard
Republic
Capital
GroupInc. 10 business days
following 20% acqui-
sition or 20%
tender offer. $0.01 prior to 10
days following the
Stock Acquisition. Standard Standard; based on triggering events.
Research
Frontiers
Inc. 10 days following
20% acquisition. $0.001 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Rexene
Corporation 10 days following
15% acquisition. No redemption
value. Standard Standard; also triggered by beneficial ownership of 15%;
Acquiror's Rights become void.
Reynolds
and
Reynolds Co. 10 days following
20% acquisition
or 20% tender
offer $0.01 prior to
20% acquisition Standard Standard
Richton
International
Corporation 15 days following
20% acquisition or
10 business days
following tender
offer for 30%. $0.05 prior to 15
days following the
Stock Acquisition Date;
may be reinstated
if Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 40% beneficial ownership.
Rio
Algom
Limited 10 days following
20% acquisition or
tender offer
for 20% $.001 prior to 20%
acquisition in or
in case of fair
offer. Standard Standard
Robert
Half
Int'l Inc. 10 days following
30% acquisition or
tender offer
for 30%. $0.01 prior to Stock
Acquisition Date or
30% Acquisition. Standard Standard
Rodman &
Renshaw
Capital
Group Inc. 10 business days
following 15%
acquisition. $0.01 prior to
10% acquisition. Standard Standard; triggered by 15% beneficial ownership
Rollins
Environmental
Services,
Inc. 10 days following
15% acquisition or
tender offer
for 15%. $0.01 prior to
acquisition. Standard Standard
Rowan
Companies
Inc. 10 days following
15% acquisition or
tender offer
for 30% $0.01 prior to
15% acquisition in
or in case of
fair offer. Standard Standard
Ruddick
Corp. 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to
Stock Acquisition
Date Standard Standard
Ryder
System, Inc. 10 days following
20% acquisition or
tender offer
for 30% $0.05 prior to
20% acquisition. Standard Standard; also triggered 10% beneficial ownership.
SEI
Corporation 10 days following
40% beneficial owner-
ship or 20% acquisition
since start of plan or
up to 65 days following
30% tender offer. $0.01 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also triggered by 40% beneficial ownership, 20%
acquisition since start of plan, or by 1% event.
SPS
Technologies 10 days following
20% acquisition or
tender offer for 20%
or after a person is
declared an
"Adverse Person." $0.01 prior to the
10th day following
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
SPX
Corporation 10 days following
20% acquisition or
tender offer
for 20%. NA Standard Standard
Sage
Software 10 days following
20% acquisition or
tender offer
for 30%. $0.01 prior to the
10th day following
acquisition. Standard Standard; also triggered by beneficial ownership of 25%.
Sanderson
Farms, Inc. 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to
acquisition. Standard Standard
Sanifill Inc. 10 days following
15% acquisition or
tender offer
for 15% $.01 prior to 15%
acquisition in or
in case of
fair offer. Standard Standard
Santa
Anita
Realty 10 business days
following 10%
acquisition or
tender offer. $0.001 prior to the
10th business day
following Stock
Acquisition Date. Standard Standard; also triggered by 10% beneficial ownership or 1%
event.
Santa Fe
Energy
Resources Inc. 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to
Stock Acquisition
Date Standard Standard
Sara
Lee
Corporation 10 days following
20% acquisition or
tender offer
for 20%. $0.01 prior to 20%
acquisition or 10
business days fol-
lowing (1) a merger
or consolidation with
a corporation which
is not an Acquiror
or (2) expiration of
Flip-in Rights; may
be reinstated if
Acquiror reduces
beneficial ownership
to less than 5%. Standard Standard; also triggered by 30% beneficial ownership.
Sea
Containers
Ltd. 10 days following
20% acquisition or
tender offer
for 30%. $0.05 prior to 10th
day following Stock
Acquisition Date. Standard Standard; also triggered by 20% acquisition.
Seagull
Energy
Corp. (4) 10 days following
20% acquisition or
10 business days
following 20%
tender offer. $0.01 prior to 10th
day following
Stock Acquisition
Date. Standard Standard; also triggered by 20% ownership or by 1% event.
Security
Bancorp 10 days following
15% acquisition or
tender offer. $0.01 prior to 10th
day following 15%
acquisition or
tender offer. Standard Standard; also triggered by 15% beneficial ownership.
Security
Investments
Group 10 days following
tender offer
for 15%. $0.01 prior to 10th
day following
flip-in date. Standard Standard; also triggered by beneficial ownership of 15%.
Security
Pacific
Corporation 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.001 prior to 20%
acquisition rounded
upward for each holder
to nearest $0.01. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
Sensormatic
Electronics
Corporation 10 days following
15% acquisition or
tender offer of 15%,
also if person acquires
2% Common Stock if
such person owned 15%
or more on announce-
ment date. $0.01 prior to
15% acquisition. Standard Standard; Acquiror's Rights become void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER- UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/ EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKET TION
<S> <C> <C> <C> <C> <C> <C> <C>
Service
Corporation
International 07/18/88 TX 1/100th share of Series
C Junior Participating
Preferred Stock. 20.00 85 4.25 10
Service
Merchandise
Company,
Inc. 05/05/89 TN Series A Junior
Preferred Stock 20.000 50 2.50 10
Shaklee
Corporation 11/08/88 DE 1/1000th share of Series
A Participating
Preferred Stock 22.13 50 2.26 5
Shared
Medical
Systems
Corp. 05/01/91 DE 1/1000th Share of
Preferred Stock 00.25 80 3.95 10
Shaw
Industries 03/29/89 GA 1/100th share of Series
A Participating
Preferred Stock 24.13 100 4.14 10
Shawmut
National
Corporation 03/01/89 DE 1/100th of a share of
Series A Junior
Participating
Preferred Stock 24.25 100 4.12 10
Sherritt
Gordon 11/27/89 ON 1 share of Common Stock NA 41 NA 10
Sherwin-
Williams
Company 01/25/89 OH 1/100th share of
Cumulative Redeemable
Serial Preferred
Stock 25.88 95 3.67 10
Shoney's
Inc. 03/07/88 TN 1 share of Common Stock 24.50 60 2.45 5
Signet
Banking
Corporation 05/23/89 VA 1/100th of share of
Series A Junior
Participating
Preferred Stock 36.125 140 3.88 10
Silicon
General,
Inc. 12/06/90 CA 1 share of Common Stock NA 11 NA 10
Silicon
Graphics,
Inc 2/01/91 DE 1/1000th share of
Preferred Stock 33.00 150 4.55 10
Silicon
Systems,
Inc. 02/21/89 DE 1/100th of a share of
Series A Participating
Preferred Stock 10.63 55 5.17 10
Sizeler
Property I
nvestors,
Inc. 05/03/89 DE 1 share Common Stock 16.125 60 3.72 10
Skipper's
Inc. 02/23/89 WA 1 share of Common Stock 9.13 18 1.97 10
Smith
International,
Inc. 6/19/90 DE 1/100th share of
Preferred Stock 14.50 50 3.45 10
Smithfield
Companies,
Inc. 08/29/91 VA 1 share of
Preferred Stock 8.25 29.5 3.58 10
Smithfield
Foods 05/08/91 DE 1/1000th Share of
Preferred Stock 22.50 150 6.67 10
SmithKline
Beckman
Corporation 05/25/88 PA 1/100th share of Series
A Participating
Cumulative
Preferred Stock 49.75 200 4.02 10
Society
Corp. 08/25/89 OH 1 share of Common Stock 37.75 130 3.44 10
Software
Publishing
Corp. 04/23/91 DE 1/1000th Share of
Preferred Stock 20.75 150 7.23 10
Solitron
Devices,
Inc. 05/29/91 DE 1/100th Share of
Preferred Stock 1.375 7.5 5.45 10
Southam 02/01/90 TOR 1 share of Common Stock NA 125 NA 10
Southdown,
Inc. 3/04/91 LA 1/100th share of
Preferred Stock 15.50 60 3.87 10
Southeast
Banking
Corp. 10/20/89 FL 1/100th share of Series
F Junior Participating
Preferred Stock 26.13 140 5.36 10
Southern
Union
Company 02/12/88 DE 1 share of Common Stock 8.63 20 2.32 10
Southmark
Corporation 01/20/89 GA 1/4th share of
Common Stock 2.00 8 4.00 10
Southtrust
Corporation 02/22/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock 21.50 75 3.49 10
Southwestern
Bell Corp. 01/17/89 DE 1/100th Share of Series
A Junior Participating
Preferred Stock 43.50 160 3.68 10
Southwestern
Energy
Company 05/05/89 AR 1 share Common Stock 23.25 75 3.22 10
Southwestern
Public
Service 07/23/91 NM 1 Share Common Stock 29.38 70 2.38 10
Sovereign
Bancorp,
Inc. 09/19/89 PA 1/100th Share of Series
A Junior Participating
Preferred Stock 18.75 80 4.27 10
Sovran
Financial
Corp. 07/18/89 VA 1/100th share Series
A Junior
Preferred Stock 40.125 140 3.49 10
Span-
America
Medical
Systems Inc. 09/22/93 SC 1/2 share of
Common Stock 5.75 16.00 2.78 10
Square
D Company 08/24/88 MI 1/2 share of
Common Stock 46.88 200 4.27 10
St. Paul
Bancorp Inc. 10/26/92 DE 1/100th share of
Preferred Stock 20.125 80.00 3.98 10
St. Paul
Companies 12/04/89 MN 1/1000th share of Series
A Junior Participating
Preferred Stock 63.00 185 2.94 10
or 3
years
following
separation
date if
it occurs
prior to
12/19/96
Standard
Federal 09/22/89 Feder-
ally
Char-
ter-
ed 1/100th share of Series
A Preferred Stock 12.00 45 3.75 10
Standard
Microsystems
Corporation 01/06/88 DE 1/1000th share of Series
A Participating
Preferred Stock 7.00 25 3.57 10
Standex
International
Corp. 01/25/89 DE 1/2 share of Common
Stock and one note 22.00 85 3.86 10
Stanhome
Inc. 09/07/88 MA 1 share of Common Stock 20.00 85 4.25 10
Star
Banc
Corporation 10/10/89 OH 1/100th share of Series
A Preferred Stock 25.50 100 3.92 10
State
Street
Boston
Corporation 09/15/88 MA 1/100th share of Series
A Junior Participating
Preferred Stock 25.13 150 5.97 10
Sterling
Bancorp 02/16/89 NY 1/100th share of Series
C Junior Participating
Preferred Stock 9.50 35 3.68 10
Stone
Container
Corporation 07/25/88 DE 1/100th share of Series
D Junior Participating
Preferred Stock 34.63 130 3.75 10
Stone
Container
Corp. 07/23/90 DE 1/100th share of
Preferred Stock 15.38 130 8.45 8
Stoneridge
Resources,
Inc. 02/19/91 DE 1/100th share of
Preferred Stock 5.00 15 3.00 0
Storage
Technology
Corp. 08/08/89 DE 1/100th share of
Preferred Stock 21.50 150 6.98 10
Stratus
Computer Inc. 12/04/90 MA 1 share of Common Stock 23.50 110 4.68 10
Summit
Bancorporation 01/19/90 NJ 1/100th share of Series
B Junior Participating
Preferred Stock 16.88 70 4.15 10
Summit
Bancshares
Inc. 04/17/90 TX 1 share of Common Stock NA 50 NA 10
Summit
Technology
Inc. 05/29/90 MA 1/4 share of
Common Stock 8.25 50 6.06 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Service
Corporation
International 10 days following
20% acquisition or
10 business days
following tender
offer for 20%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Service
Merchandise
Company,
Inc. 20% acquisition or
tender offer. Standard Standard Standard
Shaklee
Corporation 10 days following
15% acquisition or
tender offer
for 15%. $0.01 prior to
15% acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Shared
Medical
Systems
Corp. 10 days following 15%
acquisition or
tender offer for 15% $0.001 prior to Stock
Acquisiton Date Standard Standard
Shaw
Industries Following 20% acquisition
or 10 days following 20%
tender offer without
Company's consent. $0.01 prior to Stock
Acquisition Date; may
be redeemed in merger
unrelated to
Acquiror. Standard Standard; also triggered by 20% beneficial ownership.
Shawmut
National
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 20% or 10%
acquisition by person
seeking short term
financial gain and/or
causing material adverse
effect as determined
by Board $0.01 prior to the 10th
day following Stock
Acquisition Date. Standard Standard; Acquiror's Rights become void.
Sherritt
Gordon 8 trading days following
20% acquisition or
tender offer. $0.01 prior to flip-in
event; if 90% acquired
by Permitted Bid, must
be redeemed. Standard Standard; also triggered by 20% beneficial ownership.
Sherwin-
Williams
Company 20 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the 20th
day following
20% acquisition. Standard Standard; also triggered by 25% beneficial ownership or 1%
event. Acquiror's Rights become void.
Shoney's
Inc. 10 business days following
20% acquisition or
tender offer for 30%. $0.01 prior to 10 business
days following the Stock
Acquisition Date. Standard Standard
Signet
Banking
Corporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by beneficial ownership of 20%.
Silicon
General,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to Stock
Acquisition Date or
20% Acquisition. Standard Standard
Silicon
Graphics,
Inc 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date Standard Standard
Silicon
Systems,
Inc. 10 days following 15%
acquisition or 10 business
days following tender
offer that results
in 30% ownership. $0.01 prior to the 10th
day following Stock
Acquisition Date. Standard Standard; also triggered by 20% ownership;
Acquiror's Rights become void.
Sizeler
Property
Investors,
Inc. 20% acquisition announce-
ment date, 10 days following
tender offer of 30%, or 10
days following declaration
of an "Adverse Person." $0.01 prior to
triggering events. Standard Standard; Acquiror's Rights become void.
Skipper's
Inc. 10 days following 25%
acquisition or tender
offer that results in
25% ownership or
"Adverse Person" owns
not less than 20%. $0.01 prior to the
earliest of the
Expiration Date or
25% acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Smith
International,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Smithfield
Companies,
Inc. 10 days following 15%
acquisition or 15%
tender offer $0.01 prior to the 15%
Stock Acquisiton Date.
Date can be reinstated
or Beneficial Ownership
falls below 15%. Standard Standard
Smithfield
Foods 10 days following 20%
acquisition or 20%
tender offer $0.01 prior to Stock
Acquisiton Date Standard Standard
SmithKline
Beckman
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 25%. $0.05 prior to the Stock
Acquisition Date. Standard Standard; also triggered by 25% beneficial ownership.
Society
Corp. 20 days following 15%
acquisition or
tender offer. $0.01 prior to 20th day
following
acquisition. Standard Standard; also triggered by 15% beneficial ownership.
Software
Publishing
Corp. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 15%
Acquisitions Standard Standard
Solitron
Devices,
Inc. 10 days following 20%
acquisition or 20%
tender offer $0.01 prior to Stock
Acquisiton Date Standard Standard
Southam Announcement of
20% acquisition. $0.001 any time prior
to Flip-in Event. Standard Standard; also triggered by 20% beneficial ownership.
Southdown,
Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date can be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Southeast
Banking
Corp. 10 days following 20%
acquisition or 10 business
days following
20% tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or by 1%
event.
Southern
Union
Company 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the 10th
day following 20% acquisition;
may be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Southmark
Corporation 10 days following 20%
acquisition, tender offer
for 20%, or after a person
is declared an "Adverse
Person." $0.01 prior to
Expiration Date. Standard Standard; Acquiror's Rights become void.
Southtrust
Corporation 10 days following 20%
acquisition or "Adverse
Person" declaration or
10 business days following
20% tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
below 10%. Standard Standard; triggered by 30% beneficial ownership except in case
of Fair Offer, "Adverse Person" declaration, or event that
increases Acquiror's ownership by more than 1%.
Southwestern
Bell Corp. 10 business days following
20% acquisition or 10 business
days following tender offer
for 20% or 10 days after a
person is declared to be
an "Adverse Person." $0.05 prior to 10 business
days following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership;
Acquiror's Rights become void.
Southwestern
Energy
Company 10 days following 20%
acquisition, more than
2% acquired by person
previously holding 20%
or more, or after a person
is determined an
"Adverse Person." $0.01 prior to triggering
event or any merger
or consolidation. Standard Standard
Southwestern
Public
Service 10 days following 10%
acquisition or 10%
tender offer $0.01 prior to Stock
Acquisiton Date Standard Standard
Sovereign
Bancorp, Inc. 10 business days following
19.9% acquisition, a tender
offer for 19.9%, or the
declaration of an
"Adverse Person" with
at least 4.9% of the
Common Stock. $0.001 prior to the 10th
day following
acquisition. Standard Standard; also triggered by a 1% event.
Sovran
Financial
Corp. 20% acquisition or
tender offer for 10%. $0.01 prior to
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Span-
America
Medical
Systems
Inc. 10 business days following
20% acquisition. $0.001 prior to 15%
acquisition. Standard Standard; triggered by 20% beneficial ownership.
Square
D Company 10 days following a 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to a 20%
acquisition. Board may
exchange at a ratio of 1
Common Share per Right
between the points of
20% and 50%
acquisition. Standard Standard; also triggered by a 1% event. Acquiror's Rights
become void.
St.
Paul
Bancorp
Inc. 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to 10%
acquisition in or
in case of fair
offer. Standard Standard
St. Paul
Companies 10 days following 15%
acquisition or
tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date; may be resisted
prior to flip-over event
if Acquiror reduces
ownership to 10%. Standard Standard
Standard
Federal 10 business days following
20% acquisition, commence-
ment of a tender offer, or
the determination by the
Board that a person having
at least 15% of the Common
Stock is an "Adverse
Person." $0.01 prior to 10th day
following acquisition or
determination of an
"Adverse Person." Standard Standard
Standard
Microsystems
Corporation 15 days following 20%
acquisition or 10 business
days following
30% offer. $0.01 prior to 15 days
following the Stock
Acquisition Date; may
be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Standex
International
Corp. 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date; may be
reinstated if Acquiror
reduces beneficial
ownership to 10%
or less. Standard Standard; also triggered by 25% beneficial ownership or 1%
event; Acquiror's Rights become void.
Stanhome
Inc. 10 days following a 20%
acquisition; 10 business
days following tender offer
for 30%; or 10 business days
following a Board declaration
that an "Adverse Person" owns
at least 15% of outstanding
shares. $0.04 prior to 10 days
following the Stock
Acquisition Date and
may be reinstated if
Acquiror reduces benefi-
cial ownership to
10% or less. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 25% beneficial ownership or a
Board declaration of an "Adverse Person." Acquiror's Rights
become void.
Star
Banc
Corporation 20 business days following
20% acquisition, 30%
tender offer, or 10%
acquisition and Adverse
Person declaration. $0.01 prior to 20th
business day following
Stock Acquisition Date;
may be reinstated if
Acquiror reduces owner-
ship below 10%. Standard Standard; also triggered by 30% beneficial ownership.
State
Street
Boston
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Sterling
Bancorp 10 days following 20%
acquisition or not later
than 19th day following
tender offer for 30%. $0.01 prior to the
11th day following the
Shares Acquisition
Date. Standard Standard; also triggered by 20% ownership; Acquiror's rights
become void.
Stone
Container
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to the 10th
business day following
the 20% acquisition, may
be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by beneficial ownership of 30%;
Acquiror's Rights become void.
Stone
Container
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Can
be reinstated if Benefi-
cial Ownership falls
below 20%. Standard Standard
Stoneridge
Resources,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
Storage
Technology
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Standard Standard
Stratus
Computer Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard
Summit
Bancorporation 10 days following 15%
acquisition or 15%
"Adverse Person" $0.01 prior to 10th day
following Stock Acquisition
Date; may be reinstated
if beneficial ownership
to below 10%. Standard Standard; also triggered by 10% beneficial ownership or 15%
"Adverse Person".
Summit
Bancshares
Inc. 10 business days following
20% acquisition or
30% tender offer. $0.01 prior to 10th day
following
20% acquisition. Standard Triggered by 1% event, 40% beneficial ownership exercise price
reduced to the greater of par value or 25% of their current
market price.
Summit
Technology
Inc. 10 days following 15%
acquisition or "Grandfather
Stockholder"
acquiring 20%. $0.001 per Right Standard
prior to Share
Acquisition Date. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Sun
Microsystems,
Inc. 05/05/89 DE 1 share Common Stock 16.75 100 5.97 10
Sunrise
Medical Inc. 04/24/90 DE 1/2 share of
Common Stock 12.0 55.00 4.58 10
Super
Food
Services,
Inc. 01/27/89 DE 1/100th share Junior
Participating
Preferred Stock 17 100 5.88 10
Super
Valu
Stores, Inc. 04/12/89 DE 1/1000th share of Series
B Junior Participating
Preferred Stock 24.88 95 3.22 10
Synalloy
Corporation 03/27/89 SC 4/10th share of
Common Stock 7.75 15 1.94 10
Syncor
International 11/07/89 DE 1/4 of a
Common share 7.00 20 2.88 10
Synergen
Inc. 10/24/91 DE 1/100th share of
Preferred Stock 46.33 20.00 0.43 10
Synoptics
Communications
Inc. 03/05/90 CA 1/2 share of
Common Stock 15.75 140 8.89 10
System
Industries,
Inc. 09/09/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 6.00 27 4.50 10
TCF
Financial
Corporation 05/23/89 DE 1/100th of share of Series
A Junior Participating
Preferred Stock. 13.0 60 4.62 10
TCI
International 12/18/89 DE 1/100th share of
Common Stock 6.50 30 4.62 10
TGX
Corporation
Inc. 10/04/88 DE 1/100th share of Series
A Junior
Preferred Stock 1.63 10.5 6.44 10
TNP
Enterprises,
Inc. 10/24/88 TX 1 share of Common Stock 19.50 45 2.31 10
TSI Corp. 02/12/91 DE 1/100th share
Preferred Stock 15.50 19.80 1.28 10
TW
Services,
Inc. 09/19/88 DE 1/100th share of Series
A Preferred Stock 23.25 75 3.23 10
Team, Inc. 10/24/90 TX 1/100th share of
Preferred Stock 10.00 100 10.00 10
Tecumseh
Products
Company 08/30/92 MI 1/2 share of
Common Stock (A) 60.5 160.00 2.64 9
Tecumseh
Products
Company 1/23/91 MI 1 share of Common Stock 80.00 320 4.00 9
Tektronix,
Inc. 8/16/90 OR 1/1000th share of
Preferred Stock 12.88 60 4.66 10
TeleCom
Corp. 04/23/91 TX 1/100th Share of
Preferred Stock 1.25 8 6.40 10
Teletronix,
Inc. 8/16/90 OR 1 share of
Preferred Stock NA 60 NA NA
Temple-
Inland Inc. 02/03/89 DE 1/100th of a share of
Series A Junior
Participating
Preferred Stock 56.25 200 3.56 10
Tenneco
Inc. 05/25/88 DE 1/100th share of Series A
Participating Junior
Preferred Stock 45.75 130 2.84 10
Teradyne Inc. 03/14/90 MA 1 share Common Stock 9.38 40 4.26 10
Terminal
Data
Corp 11/23/92 DE 1/100th Share of
Preferred Stock 4.00 20 5.0 10
Texaco,
Inc. 03/16/89 DE 1/100th of a share of
Series D Junior
Participating
Preferred Stock 53.63 150 2.80 10
Texas
Air
Corporation 06/09/88 DE 1/200th share of Series
A Junior participating
Preferred Stock 12.00 60 5.00 10
Texas
Eastern
Corporation 03/15/89 DE 1/100th of a share of
1989 Junior Participating
Preferred Stock 50.13 100 1.99 10
Texas
Instruments
Incorporated 06/17/88 DE 1/100th share of participating
Cumulative
Preferred Stock 47.63 200 4.20 10
Texfi
Industries,
Inc. 07/22/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 6.75 30 4.44 10
Tiffany &
Company 11/18/88 DE 1/100th share of Series
A Junior Participating
Cumulative
Preferred Stock 43.50 140 3.22 10
Time
Incorporated 01/19/89
restating
4/29/86
8A. DE 1/100th share of Series
A Participating
Preferred Stock 110.38 300 2.72 10
Tolland
Bank 06/20/89 CT 1 share of Common Stock 10.38 40 3.85 10
Tom
Brown Inc. 3/01/91 DE 1/100th share of
Preferred Stock NA 20 NA 10
Tony
Lama
Co., Inc. 04/23/90 TX 1 share of Common Stock 6.75 28 4.15 10
Topps
Company
Inc. 12/02/91 DE 1/100th share of
Preferred Stock 14.00 62.00 4.43 10
Trans
Financial
Bancorp 01/20/92 KY 1/100th share of
Preferred Stock 15.5 45.00 2.90 10
Trans
Financial
Bancorp 01/20/92 KY 1/1,000th share of
Preferred Stock 15.50 45.00 2.90 10
TransNet
Corp. 01/14/88 DE 1 share of Common Stock. 2.06 7.50 3.64 NA
Triad
Systems
Corporation 10/28/88 DE 1 share of Common Stock NA 47 NA 10
Triangle
Corp. 7/15/90 DE 1/100th share of
Preferred Stock 4.88 25 5.12 10
Trinity
Industries 04/11/89 DE 1/100th share of Series
A Junior Participating
Preferred Stock. 35.5 175 4.93 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Sun
Microsystems,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
Sunrise
Medical
Inc. 10 days following 25%
acquisition or tender
offer for 25% $0.01 prior to 25%
acquisition in or in
case of fair offer. Standard Standard
Super
Food
Services,
Inc. 10 business days following
20% acquisition or
tender offer. $0.02 prior to 10th business
day following Stock
Acquisition Date. Standard Standard; triggered by beneficial ownership of 20%; Acquirors
Rights become void.
Super
Valu
Stores, Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Synalloy
Corporation 10 days following 22%
acquisition or 10 business
days following 25%
tender offer. $0.01 prior to 10 days
following Stock Acquisition
Date; may be reinstated if
Acquiror reduces ownership
to 10%. Standard Standard Standard; triggered by 25% beneficial ownership, unless
transaction approval by 85% of stockholders other than
Acquiror.
Syncor
International 10 business days following
20% acquisition or
tender offer $0.01 prior to 10 business
days following Stock
Acquisition Date. Standard Triggered by 20% beneficial ownership unless there is a
Qualified Offer.
Synergen Inc. 10 days following 20%
acquisition or tender
offer for 20% $0.001 prior to 20%
acquisition in or in
case of fair
offer. Standard Standard
Synoptics
Communications
Inc. 20% acquisition or 10
days following 20%
tender offer. $0.01 after stock
Acquisition Date but
prior to any
schedule 13 Event. Standard Standard; also triggered by 20% beneficial ownership, or 1%
event.
System
Industries,
Inc. 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 5 p.m.
CA time, on the 10th day
following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership or 1%
event. Acquiror's Rights become void.
TCF
Financial
Corporation 10 days following 15%
acquisition or tender
offer of 15%. $0.01 prior to 15%
acquisition Standard Standard
TCI
International 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard; also triggered by 20% beneficial ownership.
TGX
Corporation
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.001 prior to 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership or 1%
event. Acquiror's Rights become void.
TNP
Enterprises,
Inc. 20 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to the 20th
day following
20% acquisition Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
TSI Corp. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to Stock
Acquisition Date. Can
be reinstated if Benefi-
cial Ownership falls
below 20%. Standard Standard
TW
Services,
Inc. 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to the 10th
day following the Share
Acquisition Date. Standard Standard; Acquiror's rights become void.
Team, Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Can be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Tecumseh
Products
Company 10 days following 10%
acquisition or tender
offer for 10% $0.005 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
Tecumseh
Products
Company 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to Stock
Acquisition Date Standard Standard
Tektronix,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date Standard Standard
TeleCom
Corp. 10 days following 30%
acquisition or 10 business
days following tender
offer for 35% $0.01 prior to Stock
Acquisiton Date Standard Standard
Teletronix,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. NA Standard Standard
Temple-
Inland Inc. 10 business days following
20% acquisition or tender
offer for more
than 25%. $0.01 prior to the 10th
day following the Stock
Acquisition Date. Standard Standard; also triggered by 25% ownership; Acquiror's Rights
become void.
Tenneco Inc. 10 business days following
20% acquisition or
tender offer. $0.05 prior to the 20th
day following
20% acquisition. Standard Standard; also triggered by 40% beneficial ownership.
Acquiror's Rights become void.
Teradyne Inc. 10 days following 20%
acquisition, 10 business
days following 30% tender
offer or 15%
"Adverse Person" $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership, 1%
event, or 15% "Adverse Person".
Terminal
Data Corp 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Texaco, Inc. 10 business days following
20% acquisition or 10
business days following
tender offer that would
result in 20% ownership. $0.01 prior to the 10th
day following the Stock
Acquisition Date. Standard Standard; also triggered by 20% ownership; Acquiror's Rights
become void.
Texas
Air
Corporation 10 days following 25%
acquisition or 10 business
days following tender
offer for 25%. $0.01 prior to the 10th
day following the Share
Acquisition Date. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 25%;
Acquiror's Rights become void.
Texas
Eastern
Corporation 10 days following 10%
ownership. NA Standard Standard; also triggered by 20% ownership; Acquiror's Rights
become void.
Texas
Instruments
Incorporated 10 days following 20%
acquisition or 10 business
days following tender
offer for 20%. $0.01 prior to the 10th
day following the Stock
Acquisition Date. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Texfi
Industries,
Inc. 10 days following 15%
acquisition or tender
offer for 20% or Board
determination of an
"Adverse Person" with 12%
acquisition or registration
for any such exchange offer
under the Securities Act
of 1933. $0.01 prior to 20%
acquisition (12% acquisi-
tion by "Adverse Person"),
or a 15% holder engaging
in self-dealing
transactions. Standard Standard; also triggered by beneficial ownership of 20% (12%
or more for an "Adverse Person"); Acquiror's Rights become
void.
Tiffany
& Company 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard.
Time
Incorporated 10 days following 15%
acquisition or 10 days
following tender
offer for 20%. $0.05 prior to 10 days
following the Share
Acquisition Date or the
occurrence of the
triggering event. Standard Standard; also triggered by 20% beneficial ownership.
Tolland
Bank 10 days following 20%
acquisition or
tender offer. $0.001 prior to Stock
Acquisition Date or
Adverse Person
declaration. Standard Standard; also triggered by 20% beneficial ownership or
Adverse Person declaration.
Tom
Brown Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to Stock
Acquisition Date. Can
be reinstated if Benefi-
cial Ownership falls
below 20% Standard Standard
Tony
Lama
Co., Inc. 17.5% acquisition or
17.5% tender offer. $0.01 prior to 10 days
following Stock
Acquisition Date. Standard Standard; also triggered by 17.5% acquisition.
Topps
Company
Inc. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair offer. Standard Standard
Trans
Financial
Bancorp 10 days following 15%
acquisition or tender
offer for 25% $0.01 prior to 15%
acquisition in or in
case of fair offer. Standard Standard
Trans
Financial
Bancorp 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair
offer. Standard Standard
TransNet
Corp. 10 days following 20%
acquisition, 20% tender
offer, or 10%
"Adverse Person." $0.01 10 days following
Stock Acquisition Date
or determination of
"Adverse Person." Standard Standard; also triggered by 20% beneficial ownership and 10%
"Adverse Person."
Triad
Systems
Corporation 20% acquisition or 10
days after tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard
Triangle
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Can
be reinstated if Benefi-
cial Ownership falls
below 10%. Standard Standard
Trinity
Industries 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 10th day
following stock
acquisition date Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Trinova
Corporation 01/26/89 OH 1/100th share of
Cumulative
Redeemable Stock 28.14 125 4.44 10
Triton
Energy
Corp. 6/14/90 TX 1/1000th share of
Preferred Stock 11.75 40 3.40 10
Trust
Company
Bancorporation 03/29/90 NJ 1/100th share of Series
B Preferred Stock,
no par value 18.50 150 8.11 10
Tultex
Corp. 02/22/90 VA 1/1000th share of Series
A Junior Participating
Cumulative
Preferred Stock 8.63 40 4.63 10
Twin
Disc,
Incorporated 06/17/88 WI 1/100th share of Series
A Junior
Preferred Stock 27.00 80 2.96 10
Tyler
Corporation 01/29/93 DE 1/100th Share of
Preferred Stock 5.25 21 4.0 10
UJB
Financial
Corp. 08/17/89 NJ 1/100th share of Series
R Preferred Stock 26.25 90 3.43 10
ULISCO
Corporation 02/26/88 VA 1 share of Common Stock 23.38 100 4.28 10
UNUM
Corporation 03/11/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 21.88 80 3.66 10
USAir 06/29/89 DE 1/100th share Series
D Participating
Preferred Stock 47.375 100 2.11 7
USBancorp,
Inc. 11/10/89 PA 1/10th Share of Share of
Series B
Preferred Stock 14.88 40 2.69 5
U.S.
Facilities
Corp. 5/24/90 DE 1 share of Common Stock NA 22.50 NA 10
USLIFE
Corporation 01/26/89 NY NA 37.88 NA NA NA
U.S.
Shoe
Corporation 04/04/88 OH 1/100th share of Series
A Preference 20.38 200 9.81 10
U.S.
Trust
Corporation 01/26/88 NY 1/100th share of Series
A Participating
Cumulative
Preferred Stock 40.25 100 2.48 10
U.S.
West, Inc. 04/07/89 CO 1/100th of share of Series
A Junior Participating
Cumulative
Preferred Stock. 62.375 180 2.89 10
USX Corp. 10/10/89 DE 1/100th share Series
A Junior
Preferred Stock 38.63 120 3.11 10
UTL
Corporation 10/21/88 DE 1 share of Common Stock 4.63 25 5.40 10
Union
Carbide
Corporation 07/26/89 NY 1 share Common Stock 26.75 85 3.18 10
The Union
Corporation 02/17/88 DE 1/2 share of
Common Stock 7.13 10.50 1.47 10
Union
Planters
Corpora-
tion (4) 01/19/89 TN 1/100th share Series
A Preferred Stock 12.63 90 7.13 10
United
Banks of
Colorado 7/25/90 CO 1/100th share of
Preferred Stock 19.75 60 3.04 8
United
Coin
Mines Ltd. 02/02/90 TOR 1 share of Common Stock 2.59 5
[Cdn.] NA 10
United
Companies
Financial 02/01/89 LA 1/100th share of Series
A Junior Participating
Preferred Stock 17.50 80 4.57 10
United
Saver's
Bancorp 06/29/89 NH 1 share of Common Stock 12.00 60 5.00 10
United
Water
Resources
Inc. 07/06/89 NJ 1/100th Share Series
A Participating P
referred Stock 16.75 60 3.58 10
Unitrin Inc. 08/03/94 DE 1/1,000th of Preferred 48.75 125.00 2.56 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Trinova
Corporation 20 business days following
20% acquisition or
tender offer for 20%. $0.01 prior to the close
of business on the earlier
of (1) the first occurrence
of an Acquiring Person
or 10 years. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
Triton
Energy
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date. Can be
reinstated if Beneficial
Ownership falls
below 10%. Standard Standard
Trust
Company
Bancorporation 10% acquisition or 10
days following 10%
tender offer. $0.01 prior to 10%
acquisition Standard Standard; triggered by 10% beneficial ownership.
Tultex
Corp. 10 days following 10%
acquisition or 10 business
days following 10%
tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date. Standard Standard; triggered by 10% beneficial ownership.
Twin
Disc,
Incorporated 10 business days following
20% acquisition (30% in
the case of person who
currently owns 20% or more)
or tender offer
for 30%. $0.05 prior to the 10th
business day following
the Stock Acquisition Date;
may be reinstated if Acquiror
reduces beneficial ownership t
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership;
Acquiror's Rights become void.
Tyler
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
UJB
Financial
Corp. 10 days following 15%
acquisition or tender
offer for 30%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 15% beneficial ownership
ULISCO
Corporation 10 days following 20%
acquisition or
tender offer. $0.05 prior to time
there is an
Acquiring Person. Standard Standard; also triggered by 20% beneficial ownership.
UNUM
Corporation 10 days following 20%
acquisition, 10 business
days following tender
offer for 30%, or promptly
after Board declaration
of Adverse Person $0.05 prior to 10 days
following the Stock Acquisi-
tion Date; may be reinstated
if Acquiror reduces beneficial
ownership to less
than 10%. Standard Standard; also triggered by 30% beneficial ownership
USAir 10 days following 20%
acquisition or tender
offer for 20% $0.03 30 days following
acquisition Standard Standard, also triggered by 20% beneficial ownership.
USBancorp,
Inc. 20 days following 20%
acquisition, 10% acquisition
and Adverse Person Declaration,
or tender offer, which if com-
pleted, would make Acquiror
an Acquiring or
Adverse Person. $0.01 prior to 20th day
following Stock
Acquisition Date. Standard Standard; triggered by 20% beneficial ownership or Adverse
Person declaration.
U.S.
Facilities
Corp. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to Stock
Acquisition Date Standard Standard
USLIFE
Corporation NA NA NA NA
U.S.
Shoe
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to time there
is an Acquiring
Person. Standard Standard; also triggered by 50% beneficial ownership.
U.S.
Trust
Corporation 10 days following 20%
acquisition, approval
to acquire 25% pursuant
to the Bank Holding
Company Act of 1956,
as amended, or notice of
nondisapproval under the
Change in Bank
Control Act. $0.01 prior to 10th day
following the Share
Acquisition Date. Standard Standard; also triggered by 40% beneficial ownership.
U.S.
West, Inc. 10 business days following
20% acquisition or tender
offer for 30%. $0.01 prior to 20%
acquisition Standard Standard
USX Corp. 15 days following 15%
acquisition or
tender offer. $0.01 prior to 15th day
following stock
Acquisition Date Standard Triggered by 15% beneficial ownership except for Qualified
Offer.
UTL
Corporation 10 days following 20%
acquisition or 10 business
days following 30%
tender offer. $0.05 prior to 15 days
following 20%
acquisition. Standard Standard; also triggered by 35% beneficial ownership.
Union
Carbide
Corporation 10 days following 20%
acquisition or
tender offer $0.01 prior to 10th day
following
acquisition Standard Standard; also triggered by 20% beneficial ownership.
The
Union
Corporation 30 days following 15%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 30 days
following 15% acquisition,
may be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 40% beneficial ownership.
Union
Planters
Corporation(4) 10 days following 21.50%
acquisition or
tender offer. $0.01 prior to 10th day
following Stock Acquisition
Date or in case of
fair offer. Standard Standard; also triggered by 21.50% beneficial ownership or by
10% beneficial ownership following tender offer or 20 days
following expiration of tender offer.
United
Banks of
Colorado 10 days following 10%
acquisition or tender
offer for 10%. $0.01 prior to Stock
Acquisition Date. Standard Standard
United
Coin
Mines Ltd. Public announcement of
20% acquisition or 20%
tender offer. $0.0001 any time prior to
Flip-in event. None Standard
United
Companies
Financial 10 days following 45%
acquisition or 10 business
days following 50%
tender offer. $0.01 prior to 45% Acquisition;
may be reinstated prior to
triggering event if Acquiror
reduces beneficial ownership
to 20%. Standard Standard; triggered by 50% beneficial ownership or event that
increases Acquiror's ownership by 1%, except in case of
Qualified Offer.
United
Saver's
Bancorp 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 10th day
following Stock
Acquisition Date. Standard Standard
United
Water
Resources
Inc. 10 days following 20% or
tender offer for 20%. $0.01 prior to
acquisition. Standard Standard
Unitrin
Inc. 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 15% beneficial ownership
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Unitrode
Corp. 05/02/90 MD 1/100th share of Series
A Junior Participating
Preferred Stock 3.88 30 7.73 10
Universal
Corporation 02/02/89 VA 1/100th share of Junior
Participating
Preferred Stock 34.13 110 3.22 10
Universal
Foods
Corporation 10/03/88 WI 1 share of Common Stock 23.75 75 3.16 10
Universal
Voltronics
Corporation 05/12/89 DE 1 share Common Stock 1.625 50 30.77 10
Unum Corp. 03/13/92 DE 1/100th share of
Preferred Stock 37.25 150.00 4.03 10
The
Upjohn
Company 03/23/89
06/17/86 DE 1/100th of a share of
Series A Participating
Cumulative
Preferred Stock 27.75 400 14.41 10
V.F.
Corporation 01/13/88 PA 1/100th share of Series
A Junior Participating
Preferred Stock 27.75 100 3.60 10
VMX Inc. 02/15/90 DE 1/2 share of
Common Stock 1.94 12 6.19 10
VWR
Corporation 05/20/88 DE 1 share of Common Stock 20.00 90 4.50 10
Valley
National
Corporation 02/25/88 AZ 1/100th share of Series
A Participating
Preferred Stock 29.38 100 3.40 10
Valley
Resources 06/18/91 RI 1/100th Share of
Preferred Stock 11.63 35 3.01 10
Van Dorn
Company
(Update) 01/15/92 OH 1/100th share of
Preferred Stock 17.625 125 7.09 6
Varo, Inc. 03/11/88 TX 1 share of Common Stock 19.00 50 2.63 10
Veeco
Instruments
Inc. 05/23/88 NY 1/100th share of Series
A Participating Cumulative
Preferred Shares 14.13 95 6.72 10
Velobind Inc. 09/08/89 DE 1 share of Common Stock 6.00 38 6.33 10
Vermont
American
Corporation 02/17/88 DE 1/100th share of Series
A Junior
Preferred Stock 17.05 70 4.11 10
Vencor Inc. 07/21/93 DE 1/100 share of
Preferred Stock 27.25 110 4.04
Versa
Technologies 12/13/88 DE 1/100th share of Junior
Participating Cumulative
Preferred Shares 13.33 60 4.50 10
Village
Financial
Svcs., LTD 7/18/90 DE 1 share of
Preferred Stock NA 40 NA NA
Vista
Chemical
Company 05/31/88 DE 1 share of Common Stock 48.38 150 3.10 10
Vitalink
Communications 12/14/89 DE 1 share of Common Stock 15.50 115 7.42 10
Volunteer
Bancshares,
Inc. 10/31/89 TN 1 share of Common Stock 13.75 60 4.36 10
Vortec
Corporation 11/12/87 OH 1 share of Common Stock 2.88 12 4.17 10
WICOR Inc. 08/29/89 WI 1 share of Common Stock 23.38 75 3.21 10
WLR Foods 02/04/94 VA 1/100th of Preferred 28.25 68.00 2.41 10
W.W.
Grainger, Inc. 04/26/89 IL 1/100th of share of Series
A Junior Participating
Preferred Stock. 57.75 250 4.33 10
Walbro
Corporation 12/06/88 DE 1/100th share of Series
A Junior Participating
Preferred Stock 16.75 75 4.48 10
Wallace
Computer
Services
Inc. 5/14/90 DE 1/200 share of Series
A Preferred Stock 25.50 115 4.51 10
The Walt
Disney
Company 06/21/89 DE 1/100th share of Series
R Preferred Stock 91.75 350 3.81 10
Waltham
Corporation 01/23/89 DE 1/100th share of Junior
Participating Cumulative
Preferred Stock. 10.25 51 4.98 10
Warner-
Lambert
Company 06/28/88 DE 1/100 share of Series
A Participating Cumulative
Preferred Stock 66.75 270 4.04 10
Warwick
Insurance
Managers,
Inc. 07/25/88 NJ 1/100 share of Series
A Junior
Preferred Stock. 8.75 25 2.86 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Unitrode
Corp. 10 days following 20%
acquisition or 10 business
days following 20% tender
offer or 10%
"Adverse Person." $0.01 prior to 10th day
following Stock Acquisition
Date. Standard Standard; also triggered by 20% beneficial ownership, 1% event
or 10% "Adverse Person."
Universal
Corporation 20 days following 10%
acquisition or 10 business
days following 10%
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void. Also triggered by 1% event.
Universal
Foods
Corporation 10 days following 20%
acquisition or 10 business
days following 20%
tender offer. $0.01 prior to 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Universal
Voltronics
Corporation 10 business days following 15%
acquisition or following
tender offer. $0.001 prior to 10th day
following stock acquisition
date or prior to final
expiration date. Standard Standard; acquiror's rights become void.
Unum Corp. 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to 10%
acquisition in or in
case of fair offer. Standard Standard
The
Upjohn
Company 10 days following 20%
acquisition or 10 business
days following tender offer
that would result in
30% ownership. $0.05 prior to the Stock
Acquisition Date. Standard Standard; Acquiror's Rights become void.
V.F.
Corporation 10 days following
acquisition or tender
offer for 20%. $0.01 prior to 20%
acquisition. Standard Standard
VMX Inc. 10 days following 20%
merger or 10 business days
following 20%
tender offer. $0.001 prior to 20%
acquisition. Standard Standard; also triggered by 30% beneficial ownership.
VWR
Corporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the 10th
business day following the
day the Rights are
distributed. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Valley
National
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.05 prior to 20%
acquisition, or until 10 days
after if tender offer approved
by an investment bank and percent-
age increased to 85%; will be
reinstated if Acquiror reduces
beneficial ownership to less
than 5%. Standard Standard; also triggered by 25% beneficial ownership.
Valley
Resources 10 days following 10%
acquisition or tender
offer for 10% $0.01 prior to Share Acquisiton
Date Standard Standard
Van Dorn
Company
(Update) 10 days following 20%
acquisition or tender offer
for 20% $0.01 prior to 20% acquisition
in or in case of
fair offer. Standard Standard
Varo, Inc. 10 days following 20%
acquisition or tender
offer for 25%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership.
Veeco
Instruments
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10 days
following the Share
Acquisition Date. Standard Standard; also triggered by 20% acquisition.
Velobind Inc. 10 days following 20%
acquisition or 20%
tender offer. $0.01 prior to 10th business
day following Stock Acquisition
Date. Standard Standard; triggered by 20% beneficial ownership.
Vermont
American
Corporation 10 days following 10%
acquisition or 15% tender
offer for Class
A shares. $0.02 prior to Stock Acquisition
Date. Standard Standard; triggered by 15% beneficial ownership, except of
permitted offer.
Vencor Inc. 10 days following 15%
acquisition or tender
offer for 15%. 0.01/15% prior to
acquisition Standard Standard
Versa
Technologies 20 business days following
20% acquisition or
30% tender offer. $0.01 prior to any
triggering event. Standard Standard; triggered by 30% beneficial ownership except in case
of fair offer.
Village
Financial
Svcs., LTD 10 days following 20%
acquisition or tender
offer for 20%. NA NA NA
Vista
Chemical
Company 10 business days following
20% acquisition or 10 days
following tender offer
for 20%. $0.01 prior to 10 business
days following 20%
acquisition. Standard Standard; also triggered by 20% beneficial ownership.
Vitalink
Communications 10 days following 20%
acquisition or
tender offer. $0.01 prior to 10th day
following 20% acquisition;
may be reinstated if Acquiror
reduces beneficial ownership
to 10%; includes White
Knight Provision. Standard Standard; also triggered by 20% beneficial ownership.
Volunteer
Bancshares,
Inc. 10 days following 20%
acquisition or
tender offer. $0.01 prior to 10th day
following 20% acquisition;
may be reinstated if ownership
reduced below 20%. Standard Standard; triggered by 25% beneficial ownership or by 1%
event.
Vortec
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to 10 days
following 20% acquisition
or tender offer
for 30%. For each
Right, will
receive cash
premium
between
highest
price paid
by Acquiror
and average
closing
price. For each Common Share and each Right, will receive cash in an
amount equal to highest price paid by Acquiror or
consideration, if so elected, as provided in the acquisition
agreement.
WICOR Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to
acquisition. Standard Standard; also triggered by a 1% event.
WLR Foods 10 days following 15%
acquisition $0.01 prior to
acquisition Standard Standard; also triggered by 15% beneficial ownership
W.W.
Grainger,
Inc. 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to 13th day
following shares acquisition
date. Standard Standard
Walbro
Corporation 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to 15%
acquisition. Standard Standard; Acquiror's Rights become void.
Wallace
Computer
Services
Inc. 20% acquisition or 20%
tender offer $0.01 prior to 10th day
following triggering
events Standard Standard
The Walt
Disney
Company 10 days following 25%
acquisition or tender
offer of 25%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Waltham
Corporation 10 days following 20%
acquisition, 10 business
days following 20% tender
offer, or 10 business days
following Adverse Person
declaration. $0.02 prior Adverse Person
declaration or 10th day
following, Stock
Acquisition Date. Standard Standard; also triggered by 20% beneficial ownership or
Adverse Person declaration.
Warner-
Lambert
Company 10 business days following 20%
acquisition or tender offer
for 20%. $0.01 prior to the 10th business
day following 20% acquisition or
prior to 30%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%
Acquiror's Rights become void.
Warwick
Insurance
Managers,
Inc. 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the 10th day
following
20% acquisition. Standard Standard; also triggered by beneficial ownership of 40%;
Acquiror's Rights become void.
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Washington
Bancorporation 10/19/88 DE 1 share of Common Stock 16.00 55 3.44 10
Washington
Water
Power Co. 2/16/90 WA 1/100th share of
Preferred Stock 29.75 80 2.69 10
Waste
Management
Inc. 8/15/90 DE NA 39.63 NA NA NA
Wavetek
Corporation 06/21/88 DE 1 share of Common Stock 7.13 25 3.51 10
Wellfleet
Communications 07/04/94 DE 1/100th of Preferred 25.25 135.00 5.35 10
Wellman,
Inc. 08/06/91 DE 1 Share of Common Stock 24.13 90 3.73 10
Wendy's
International,
Inc. 08/04/88 OH 1/100th share of Series
A Preferred Stock 5.88 25 4.26 10
The West
Company 01/16/90 PA 1/1000th share of
Preferred Stock 18.50 75 4.05 10
West One
Bancorp 10/19/89 ID 1/100th share of Series
A Junior Participating
Preferred Stock 26.17 150 5.73 10
Westbank
Corp 01/12/90 MA 1 share of Common Stock 5.45 36 6.61 10
Western Co.
North
America 03/05/90 DE 1/100th share of
Participating
Preferred Stock without
par value 17.63 70 3.97 10
Western
Digital 12/01/89 DE 1/100th share of Junior
Participating
Preferred Stock 8.25 50 6.06 10
Western
Microwave 02/16/89 VA 1 share of Common Stock 2.25 10.50 4.67 10
Westinghouse
Electric
Corporation 12/07/88 PA 1/100th share of Series
A Participating Cumulative
Preferred Stock 53.38 200 3.75 10
Westmark
International
Incorporated 02/19/88 DE 1 share of Common Stock 17.50 60 3.43 10
Westmoreland
Coal
Company 01/28/93 DE 1/100th Share of
Preferred Stock 10.00 30 3.0 10
Wetterau 11/09/89 MO 1/100th share of Series
A Junior Participating
Preferred Stock 29.38 100 3.40 10
Whirlpool
Corporation 05/12/88 DE 1/100th share of Series
A Participating Cumulative
Preferred Stock 26.38 100 3.79 10
Whitman
Corporation 01/20/89 DE 1/100th share of Junior
Participating Second
Preferred Stock 36.88 120 3.25 10
Whittaker
Corporation 11/21/88 DE 1/100th share of Series A
Participating Cumulative
Preferred Stock 42.00 125 2.98 10
Wicat
Systems
Inc.
(Update) 09/27/91 DE 1/6 M share of
Preferred Stock 3.38 15.00 4.44 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Washington
Bancorporation 10 days following 20%
acquisition or tender
offer for 20%. $0.01 prior to the 10th day
following
20% acquisition. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 30% beneficial ownership.
Acquiror's Rights become void; additional acquisitions of
stock by Washington National Holdings N.V. will not trigger
defensive provisions.
Washington
Water
Power Co. date of 10% acquisition or
10 days following 10%
tender offer. $0.01 prior to 10%
acquisition. Standard Standard
Waste
Management
Inc. NA NA NA NA
Wavetek
Corporation 10 days following 25%
acquisition or tender
offer for 30%. $0.01 prior to 25% acquisition;
may be reinstated if Acquiror
reduces beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership;
Acquiror's Rights become void.
Wellfleet
Communications 10 days following 20%
acquisition $0.01 prior to 10%
acquisition Standard Standard; also triggered by 20% beneficial ownership
Wellman, Inc. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to Share
Acquisition Standard Standard
Wendy's
International,
Inc. 20% acquisition or 10 days
following tender offer
for 20%. $0.01 prior to 20% acquisition
and may be reinstated if Acquiror
reduces beneficial ownership to
less than 20%. Standard;
Acquiror's
Rights
become
void. Standard; also triggered by 20% beneficial ownership.
Acquiror's Rights become void.
The West
Company 10 days following 15%
acquisition or
18% tender. $0.001 prior to 18% acquisition
(flip-in) and 10 days prior
to 15% acquisition
(flip-over) Standard Standard; triggered by 18% beneficial ownership.
West One
Bancorp 10 business days following
20% acquisition, 25% tender
offer, or 10% acquisition
and Adverse Person
declaration. $0.1 prior to 10th business day
following Stock Acquisition Date
or Adverse Person declaration;
may be reinstated if Acquiror
reduces ownership
below 10%. Standard Standard; triggered by 25% beneficial ownership except in case
of Permitted Offer; Acquiror's Rights become void.
Westbank
Corp 10 days following 25%
acquisition, 10 business days
following 30% tender offer or
follow 15% Adverse
Person declaration. $0.0001 prior to Adverse Person
declaration or 10th day
following Stock
Acquisition Date. Standard Standard; triggered by 30% beneficial ownership; Adverse
Person declaration, 1% event, or reduction in dividends
Western Co.
North
America 10 business days following
15% tender offer or 15%
acquisition. May terminate any time prior
to triggering
event. Standard Standard; triggered by 15% beneficial ownership.
Western
Digital 10 days following 25%
acquisition or 10 business
days following
25% tender offer. $0.01 prior to
Distribution Date. Standard Standard; also triggered by 25% beneficial ownership.
Western
Microwave 10 days following 20%
acquisition or 10 business
days following tender
offer of 30%. $0.01 prior to 10th day
following
acquisition. Standard Standard; also triggered by 30% beneficial ownership or
increase in acquiror's ownership by more than 1%.
Westinghouse
Electric
Corporation 10 days following 20%
acquisition or tender
offer for 30%. $0.01 prior to the 10th day
following
20% acquisition. Standard Standard; also triggered by 25% beneficial ownership.
Acquiror's Rights become void.
Westmark
International
Incorporated 10 days following 20%
acquisition or
tender offer. $0.01 prior to 20% acquisition.
Board may exchange one Common
Share per Right after Acquiror
accumulates 20% but before
accumulation
of 50%. Standard Standard
Westmoreland
Coal
Company 10 days following 20%
acquisition. $0.01 prior to 10%
acquisition. Standard Standard; also triggered by beneficial ownership of 20%;
Acquiror's Rights become void.
Wetterau 10 business days following
20% acquisition or tender
offer without Company's
consent $0.01 prior to Stock
Acquisition Date. Standard Standard; triggered by existence of Acquiring Person.
Whirlpool
Corporation 10 days following 20%
acquisition or 10 business
days following tender
offer for 25%. $0.05 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 25% beneficial ownership;
Acquiror's rights become void.
Whitman
Corporation 10 days following 10%
acquisition or 10 business
days following tender
offer for 10% $0.01 prior to
10% acquisition. Standard Standard; Acquiror's Rights become void.
Whittaker
Corporation 10 days following 20%
acquisition or 10 business
days following a tender
offer for 20%. $0.01 prior to 10 days
following
20% acquisition. Standard Standard; Acquiror's Rights become void.
Wicat
Systems
Inc.
(Update) 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 20%
acquisition in or in
case of fair
offer. Standard Standard
<CAPTION>
STATE
OF YEARS
DATE OF INCOR- RIGHT EXER- EXER-UNTIL
ANNOUNCE- PORA- TO MARKET CISE CISE/EXPIRA-
COMPANY MENT TION PURCHASE PRICE PRICE MARKETTION
<S> <C> <C> <C> <C> <C> <C> <C>
Wickes
Companies,
Inc. 09/13/88 DE 1 share of Common Stock 13.63 26.25 1.93 The rights
will
expire on
12/31/88,
unless the
Rights
become
exercisable
prior to
such time,
in which
case the
Rights will
expire 12
months
following
the date
on which
they
become
exercisable.
Willcox &
Gibbs, Inc. 01/10/89 NY 1/100th share of
Junior Participating
Second
Preferred Stock 16.75 75 4.48 10
The William
Carter
Company 04/01/88 MA 1/100th share of Series
A Junior Participating
Preferred Stock 45.00 10 2.22 10
Wilson
Food
Corporation 04/19/88 DE 1/100th share of
Preferred Stock 13.00 35 2.69 10
Wiser Oil 10/27/93 DE 1/1000th of Preferred 18.13 72.00 3.97 10
Wolohan
Lumber 01/26/90 MI 1 share of Common Stock 16.25 90 5.54 10
Woodhead
Industries
Inc. 7/25/90 DE 1 share of Common Stock 15.75 40 2.54 6
Wyle
Laboratories 09/28/89 CA 1/100th share of Junior
Participating Cumulative
Preferred Stock 8.50 35 4.12 10
Wynn's
International,
Inc. 03/03/89 DE 1/100th of a share of
Junior Participating
Preferred Stock 26.38 100 3.79 10
Wyse
Technology 02/18/88 CA 1 share of Common Stock 18.00 100 5.56 5
Xillnx Inc. 10/04/91 DE 1/100th share of
Preferred Stock 28.25 150.00 5.31 10
Xytronyx Inc. 04/02/91 DE 1/100th share of
Preferred Stock 19.63 120 6.11 10
Zayre Corp. 04/26/88 DE 1/100th share of Series
B Junior Participating
Preferred Stock 23.38 125 5.35 10
<CAPTION>
FLIP- FLIP-
OVER IN
TRIGGERING REDEMPTION PROVI- PROVI-
COMPANY EVENTS CONDITIONS SIONS SIONS
<S> <C> <C> <C> <C>
Wickes
Companies,
Inc. 10 business days following
20% acquisition. $0.01 prior to earlier of
(1) the Separation Time or
(2) the Expiration
Date. Standard;
Acquiror's
Rights
become
void. NA
Willcox &
Gibbs, Inc. 10 days following 20%
acquisition or 10 business
days following tender offer
for 20%. $0.01 prior to close of
business on the 10th day
following the share
Acquisition Date. Standard Standard; Acquiror's Rights become void.
The William
Carter
Company 10 days following 20%
acquisition or 10 business
days following tender
offer for 30%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 30% beneficial ownership;
Acquiror's right become void.
Wilson
Food
Corporation 10 business days following
20% acquisition or tender
offer for 25%. $0.01 prior to 10 days
following the Stock
Acquisition Date. Standard Standard; also triggered by 25% beneficial ownership.
Wiser Oil 10 days following 20%
acquisition $0.001 prior to
acquisition Standard Standard; also triggered by 20% beneficial ownership
Wolohan
Lumber 10 business days following
25% acquisition, 25% tender
offer, or 10% Adverse
Person declaration. $0.01 prior to 10th
business day following
Stock Acquisition Date.
No redemption allowed
after Adverse Person
declaration. Rights
may be reinstated if
Acquiror reduces owner-
ship to 10%. Standard Standard; also triggered by 25% beneficial ownership or
Adverse Person declaration.
Woodhead
Industries
Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.05 prior to Stock
Acquisition Date can
be reinstated if Benefi-
cial Ownership falls
below 10%. Standard Standard
Wyle
Laboratories 10 business days following
25% acquisition or 10
business days following
tender offer for 25%. $0.01 prior to 10th
day following 25%
acquisition. Standard Triggered by 25% ownership.
Wynn's
International,
Inc. 10 business days following
25% acquisition or 10
business days following
tender offer that would
result in 30%
ownership. $0.01 prior to and
including the 10th
business day after
the Stock Acquisition
Date. Standard Standard; Acquiror's Rights become void.
Wyse
Technology 10 days following 20%
acquisition or 10
business days following
tender offer
for 30%. $0.01 prior to close
of business on 10th
day following 20%
acquisition; may
be reinstated if
Acquiror reduces
beneficial ownership
to 10% or less. Standard Standard; also triggered by 30% beneficial ownership.
Xillnx Inc. 10 days following 15%
acquisition or tender
offer for 15% $0.01 prior to 15%
acquisition in or
in case of fair
offer. Standard Standard
Xytronyx Inc. 10 days following 15%
acquisition or tender
offer for 15%. $0.01 prior to 15%
acquisition. May
be reinstated if
Beneficial Ownership
falls below
15%. Standard Standard
Zayre Corp. 10 days following 20%
acquisition or 10
business days following
tender offer for 20%. $0.01 prior to
20% acquisition. Standard Standard; also triggered by 20% beneficial ownership.
</TABLE>
STRICTLY CONFIDENTIAL
BIG O TIRES, INC.
SHAREHOLDERS' RIGHTS PLAN
SUPPLEMENTAL INFORMATION
AUGUST 1994
PAINEWEBBER INCORPORATED
<PAGE>
TABLE OF CONTENTS
Part I Historical and Projected Summary Financial Statistics
Part II Price/Earnings Multiple Analysis
Part III Selected Comparable Company Analysis
Part IV Determination of Exercise Price
Part V Hypothetical Effect on Capitalization
Part VI Summary Pricing and Trading Information on Companies Adopting
Shareholders' Rights Plans
<PAGE>
PART I
HISTORICAL AND PROJECTED SUMMARY FINANCIAL STATISTICS
<PAGE>
HISTORICAL SUMMARY FINANCIAL STATISTICS (1)
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
1988 1989 1990 1991 1992 1993
<S> <C> <C> <C> <C> <C> <C>
Net Sales $93.52 $108.23 $106.90 $113.84 $119.80 $122.96
Sales Growth Rate -- 15.7% -1.2% 6.5% 5.2% 2.6%
COGS 72.73 85.63 84.62 88.64 93.78 96.88
_____ _____ _____ _____ _____ _____
Gross Profit 20.79 22.60 22.28 25.20 26.02 26.08
Gross Margin 22.2% 20.9% 20.8% 22.1% 21.7% 21.2%
Operating Expenses 17.20 18.90 19.13 20.17 20.08 20.55
_____ _____ _____ _____ _____ _____
Operating Income 3.59 3.70 3.15 5.03 5.94 5.54
Operating Margin 3.8% 3.4% 3.0% 4.4% 5.0% 4.5%
Interest Expense/
(Income) 1.23 1.33 1.89 1.58 1.17 1.22
____ ____ ____ ____ ____ ____
Pre-Tax Income 2.36 2.38 1.26 3.45 4.77 4.32
Income Taxes 1.10 1.08 0.56 1.52 1.98 1.84
____ ____ ____ ____ ____ ____
Net Income $1.27 $1.30 $0.71 $1.93 $2.78 $2.47
_____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____
Earnings
Per Share $0.43 $0.40 $0.20 $0.55 $0.80 $0.73
Shares
Outstanding 2.94 3.22 3.50 3.51 3.50 3.41
</TABLE>
_______________
(1) Data excludes extraordinary items and is adjusted for stock splits.
<PAGE>
PROJECTED SUMMARY FINANCIAL STATISTICS
($ IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $132.43 $140.14 $150.04 $161.64 $171.86 $181.90 $191.95 $201.98 $212.49 $223.54 $235.16
Sales Growth
Rate -- 5.8% 7.1% 7.7% 6.3% 5.8% 5.5% 5.2% 5.2% 5.2% 5.2%
COGS 103.84 110.91 120.58 130.72 138.51 146.54 154.33 162.01 169.99 178.83 188.13
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Gross Profit 28.58 29.24 29.46 30.93 33.35 35.36 37.62 39.97 42.50 44.71 47.03
Gross Margin 21.6% 20.9% 19.6% 19.1% 19.4% 19.4% 19.6% 19.8% 20.0% 20.0% 20.0%
Operating
Expenses 21.39 20.76 20.01 20.19 21.61 22.84 24.15 25.48 26.77 28.17 29.63
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Operating
Income 7.19 8.48 9.45 10.74 11.74 12.52 13.47 14.49 15.72 16.54 17.40
Operating Margin 5.4% 6.0% 6.3% 6.6% 6.8% 6.9% 7.0% 7.2% 7.4% 7.4% 7.4%
Interest Expense/
(Income) 1.13 1.35 1.13 0.97 0.72 0.43 0.13 (0.24) (0.21) (0.22) (0.24)
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Pre-Tax Income 6.06 7.13 8.32 9.77 11.03 12.08 13.34 14.73 15.94 16.77 17.64
Income Taxes 2.55 3.00 3.50 4.11 4.65 5.11 5.65 6.25 6.76 7.11 7.48
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Net Income $ 3.51 $ 4.13 $ 4.82 $ 5.66 $ 6.37 $ 6.98 $ 7.69 $ 8.48 $ 9.18 $ 9.66 $10.16
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
______ ______ ______ ______ ______ ______ ______ ______ ______ ______ ______
Earnings
Per Share $ 1.01 $ 1.16 $ 1.33 $ 1.53 $ 1.69 $ 1.82 $ 1.97 $ 2.13 $ 2.31 $ 2.42 $ 2.55
Shares
Outstanding 3.47 3.56 3.62 3.70 3.77 3.83 3.90 3.98 3.98 3.98 3.98
<PAGE>
</TABLE>
<PAGE>
PART II
PRICE/EARNINGS MULTIPLE ANALYSIS
<PAGE>
PRICE/EARNINGS MULTIPLE ANALYSIS - TEN-YEAR AVERAGE P/E RATIOS
[GRAPH APPEARS HERE]
PaineWebber Incorporated
P/E Ratios
Weekly: August 17, 1984 to August 17, 1994
S&P (400
INDUSTRIALS) INDEX1 INDEX2
06-Apr-84 10.91 8.64 #N/A
13-Apr-84 11.05 8.63 #N/A
20-Apr-84 11.10 8.64 #N/A
27-Apr-84 11.26 8.66 #N/A
04-May-84 11.18 8.54 #N/A
11-May-84 11.13 8.60 #N/A
18-May-84 10.96 7.97 #N/A
25-May-84 10.67 7.72 #N/A
01-Jun-84 10.79 7.81 #N/A
08-Jun-84 10.95 7.87 #N/A
15-Jun-84 10.49 7.92 #N/A
22-Jun-84 10.90 7.77 #N/A
29-Jun-84 10.83 7.90 #N/A
06-Jul-84 9.92 7.66 #N/A
13-Jul-84 9.81 7.47 #N/A
20-Jul-84 9.73 7.42 #N/A
27-Jul-84 9.82 7.43 #N/A
03-Aug-84 10.55 7.86 #N/A
10-Aug-84 10.77 7.92 #N/A
17-Aug-84 10.68 7.80 #N/A
24-Aug-84 10.90 8.02 #N/A
31-Aug-84 10.85 7.93 #N/A
07-Sep-84 10.69 8.04 #N/A
14-Sep-84 10.94 7.91 #N/A
21-Sep-84 10.70 8.05 #N/A
28-Sep-84 10.73 8.34 #N/A
05-Oct-84 10.27 7.93 #N/A
12-Oct-84 10.34 7.93 #N/A
19-Oct-84 10.55 8.27 #N/A
26-Oct-84 10.41 8.47 #N/A
02-Nov-84 10.53 8.55 #N/A
09-Nov-84 10.54 8.68 #N/A
16-Nov-84 10.31 8.58 #N/A
23-Nov-84 10.48 8.38 #N/A
30-Nov-84 10.24 8.59 #N/A
07-Dec-84 10.16 8.23 #N/A
14-Dec-84 10.16 8.62 #N/A
21-Dec-84 10.34 8.81 #N/A
28-Dec-84 10.39 8.62 #N/A
04-Jan-85 10.14 8.08 #N/A
11-Jan-85 10.41 8.12 #N/A
18-Jan-85 10.64 8.38 #N/A
25-Jan-85 11.04 8.77 #N/A
01-Feb-85 11.12 8.94 #N/A
08-Feb-85 11.34 9.01 #N/A
15-Feb-85 11.27 9.24 #N/A
22-Feb-85 11.14 9.17 #N/A
01-Mar-85 11.41 9.53 #N/A
08-Mar-85 11.14 9.18 #N/A
15-Mar-85 10.95 9.09 #N/A
22-Mar-85 11.11 9.02 #N/A
29-Mar-85 11.22 9.21 #N/A
05-Apr-85 11.32 9.16 #N/A
12-Apr-85 11.41 9.26 #N/A
19-Apr-85 11.44 8.93 #N/A
26-Apr-85 11.48 8.93 #N/A
03-May-85 11.33 9.06 #N/A
10-May-85 11.57 9.15 #N/A
17-May-85 11.74 9.13 #N/A
24-May-85 11.84 9.30 #N/A
31-May-85 11.90 9.33 #N/A
07-Jun-85 11.88 9.33 #N/A
14-Jun-85 11.71 9.21 #N/A
21-Jun-85 11.85 8.00 #N/A
28-Jun-85 12.02 7.86 #N/A
05-Jul-85 12.99 8.31 #N/A
12-Jul-85 13.00 8.51 #N/A
19-Jul-85 13.21 8.90 #N/A
26-Jul-85 13.13 8.55 #N/A
02-Aug-85 13.05 8.55 #N/A
09-Aug-85 12.82 8.43 #N/A
16-Aug-85 12.66 8.35 #N/A
23-Aug-85 12.72 8.45 #N/A
30-Aug-85 12.83 8.45 #N/A
06-Sep-85 12.82 8.47 #N/A
13-Sep-85 12.49 8.21 #N/A
20-Sep-85 12.41 8.03 #N/A
27-Sep-85 12.40 8.31 #N/A
04-Oct-85 13.15 9.52 #N/A
11-Oct-85 13.21 9.79 #N/A
18-Oct-85 13.41 9.85 #N/A
25-Oct-85 13.42 9.97 #N/A
01-Nov-85 13.68 10.10 #N/A
08-Nov-85 13.81 10.42 #N/A
15-Nov-85 14.14 10.86 #N/A
22-Nov-85 14.41 10.86 #N/A
29-Nov-85 14.47 11.05 #N/A
06-Dec-85 14.52 11.51 #N/A
13-Dec-85 15.00 11.91 #N/A
20-Dec-85 15.05 11.89 #N/A
27-Dec-85 14.98 11.71 #N/A
03-Jan-86 15.35 13.13 #N/A
10-Jan-86 14.99 12.15 #N/A
17-Jan-86 15.15 12.52 #N/A
24-Jan-86 14.97 12.59 #N/A
31-Jan-86 15.31 12.91 #N/A
07-Feb-86 15.54 13.49 #N/A
14-Feb-86 15.89 13.48 #N/A
21-Feb-86 16.25 13.78 #N/A
28-Feb-86 16.41 13.47 #N/A
07-Mar-86 16.28 13.87 #N/A
14-Mar-86 17.09 14.08 #N/A
21-Mar-86 16.93 14.15 #N/A
28-Mar-86 17.32 14.64 #N/A
04-Apr-86 16.83 14.33 #N/A
11-Apr-86 17.41 13.93 #N/A
18-Apr-86 17.91 14.60 #N/A
25-Apr-86 17.99 14.63 #N/A
02-May-86 17.45 14.60 #N/A
09-May-86 17.72 15.16 #N/A
16-May-86 17.33 14.19 #N/A
23-May-86 17.96 14.07 #N/A
30-May-86 18.42 14.16 #N/A
06-Jun-86 18.35 14.15 #N/A
13-Jun-86 18.35 14.75 #N/A
20-Jun-86 18.44 14.35 #N/A
27-Jun-86 18.56 14.80 #N/A
04-Jul-86 18.17 13.94 #N/A
11-Jul-86 17.38 12.96 #N/A
18-Jul-86 16.90 12.90 #N/A
25-Jul-86 17.15 12.92 #N/A
01-Aug-86 16.76 13.01 #N/A
08-Aug-86 16.92 12.95 #N/A
15-Aug-86 17.64 13.37 #N/A
22-Aug-86 17.79 13.16 #N/A
29-Aug-86 17.98 12.96 #N/A
05-Sep-86 17.92 13.17 #N/A
12-Sep-86 16.53 12.84 #N/A
19-Sep-86 16.62 13.09 #N/A
26-Sep-86 16.59 13.45 #N/A
03-Oct-86 16.63 12.09 #N/A
10-Oct-86 16.76 11.90 #N/A
17-Oct-86 17.04 12.07 #N/A
24-Oct-86 17.01 13.09 #N/A
31-Oct-86 17.42 13.82 #N/A
07-Nov-86 17.58 13.93 #N/A
14-Nov-86 17.52 14.10 #N/A
21-Nov-86 17.60 13.57 #N/A
28-Nov-86 17.86 13.39 #N/A
05-Dec-86 17.97 13.78 #N/A
12-Dec-86 17.70 13.25 #N/A
19-Dec-86 17.87 13.98 #N/A
26-Dec-86 17.69 13.78 #N/A
02-Jan-87 19.06 12.99 #N/A
09-Jan-87 20.02 13.42 #N/A
16-Jan-87 20.70 14.40 #N/A
23-Jan-87 21.01 14.87 #N/A
30-Jan-87 21.40 14.88 #N/A
06-Feb-87 21.95 16.13 #N/A
13-Feb-87 22.03 15.99 #N/A
20-Feb-87 22.45 16.23 #N/A
27-Feb-87 22.40 15.52 #N/A
06-Mar-87 23.00 16.55 #N/A
13-Mar-87 22.99 17.15 #N/A
20-Mar-87 23.73 16.50 #N/A
27-Mar-87 23.62 16.37 #N/A
03-Apr-87 22.94 14.86 #N/A
10-Apr-87 22.43 14.77 #N/A
17-Apr-87 21.98 14.09 #N/A
24-Apr-87 21.59 14.38 #N/A
01-May-87 22.08 14.49 #N/A
08-May-87 22.53 15.10 #N/A
15-May-87 22.10 15.07 #N/A
22-May-87 21.68 14.46 #N/A
29-May-87 22.25 14.57 #N/A
05-Jun-87 22.49 14.36 #N/A
12-Jun-87 23.06 15.10 #N/A
19-Jun-87 23.50 14.61 #N/A
26-Jun-87 23.55 15.01 #N/A
03-Jul-87 21.93 14.07 #N/A
10-Jul-87 22.23 14.11 #N/A
17-Jul-87 22.75 14.24 #N/A
24-Jul-87 22.36 14.29 #N/A
31-Jul-87 23.06 14.96 #N/A
07-Aug-87 23.36 15.05 #N/A
14-Aug-87 24.05 15.73 #N/A
21-Aug-87 24.23 16.02 #N/A
28-Aug-87 23.62 15.31 #N/A
04-Sep-87 22.86 15.02 #N/A
11-Sep-87 23.29 15.17 #N/A
18-Sep-87 22.73 14.81 #N/A
25-Sep-87 23.10 14.14 #N/A
02-Oct-87 21.24 14.09 #N/A
09-Oct-87 20.02 13.49 #N/A
16-Oct-87 18.03 12.04 #N/A
23-Oct-87 15.63 10.22 #N/A
30-Oct-87 15.99 9.49 #N/A
06-Nov-87 15.83 9.70 #N/A
13-Nov-87 15.58 10.22 #N/A
20-Nov-87 15.34 10.40 #N/A
27-Nov-87 15.25 11.05 #N/A
04-Dec-87 14.15 10.34 #N/A
11-Dec-87 15.03 10.14 #N/A
18-Dec-87 15.93 10.91 #N/A
25-Dec-87 16.20 11.70 #N/A
01-Jan-88 14.09 10.34 #N/A
08-Jan-88 13.84 10.21 #N/A
15-Jan-88 14.32 9.97 #N/A
22-Jan-88 13.92 9.96 #N/A
29-Jan-88 14.48 10.41 #N/A
05-Feb-88 14.12 10.53 #N/A
12-Feb-88 14.59 10.61 #N/A
19-Feb-88 14.86 11.44 #N/A
26-Feb-88 14.92 11.46 #N/A
04-Mar-88 15.23 11.65 #N/A
11-Mar-88 15.15 11.89 #N/A
18-Mar-88 15.51 12.79 #N/A
25-Mar-88 14.76 12.42 #N/A
01-Apr-88 13.61 12.14 #N/A
08-Apr-88 14.21 12.55 #N/A
15-Apr-88 13.72 11.79 #N/A
22-Apr-88 13.73 11.51 #N/A
29-Apr-88 13.80 11.81 #N/A
06-May-88 13.59 11.97 #N/A
13-May-88 13.51 11.96 #N/A
20-May-88 13.30 12.39 #N/A
27-May-88 13.26 12.50 #N/A
03-Jun-88 13.94 12.54 #N/A
10-Jun-88 14.21 12.49 #N/A
17-Jun-88 14.17 12.20 #N/A
24-Jun-88 14.33 12.32 #N/A
01-Jul-88 13.21 12.47 #N/A
08-Jul-88 13.14 12.08 #N/A
15-Jul-88 13.23 12.31 #N/A
22-Jul-88 12.81 12.36 #N/A
29-Jul-88 13.22 12.18 #N/A
05-Aug-88 13.14 11.95 #N/A
12-Aug-88 12.71 11.77 #N/A
19-Aug-88 12.56 12.00 #N/A
26-Aug-88 12.54 11.69 #N/A
02-Sep-88 12.77 11.50 #N/A
09-Sep-88 12.88 11.25 #N/A
16-Sep-88 13.08 11.83 #N/A
23-Sep-88 13.02 13.86 #N/A
30-Sep-88 13.12 13.55 #N/A
07-Oct-88 12.80 13.27
14-Oct-88 12.70 13.77 #N/A
21-Oct-88 13.11 14.17 #N/A
28-Oct-88 12.86 13.39 #N/A
04-Nov-88 12.76 13.29 #N/A
11-Nov-88 12.36 13.28 #N/A
18-Nov-88 12.29 11.64 #N/A
25-Nov-88 12.34 12.67 #N/A
02-Dec-88 12.56 12.76 #N/A
09-Dec-88 12.80 13.22 #N/A
16-Dec-88 12.78 13.02 #N/A
23-Dec-88 12.89 13.14 #N/A
30-Dec-88 12.89 13.17 #N/A
06-Jan-89 12.48 12.10 #N/A
13-Jan-89 12.63 11.94 #N/A
20-Jan-89 12.73 11.78 #N/A
27-Jan-89 13.05 11.45 #N/A
03-Feb-89 13.21 11.50 #N/A
10-Feb-89 12.96 13.05 #N/A
17-Feb-89 13.16 12.50 #N/A
24-Feb-89 12.73 12.31 #N/A
03-Mar-89 12.92 12.95 #N/A
10-Mar-89 12.99 13.01 #N/A
17-Mar-89 12.98 12.58 #N/A
24-Mar-89 12.79 12.41 #N/A
31-Mar-89 13.04 12.91 #N/A
07-Apr-89 12.57 12.24 #N/A
14-Apr-89 12.77 12.29 #N/A
21-Apr-89 13.12 12.17 #N/A
28-Apr-89 13.09 12.12 #N/A
05-May-89 13.00 11.92 #N/A
12-May-89 13.25 12.37 #N/A
19-May-89 13.54 13.14 #N/A
26-May-89 13.55 13.27 #N/A
02-Jun-89 13.69 13.44 #N/A
09-Jun-89 13.71 13.36 #N/A
16-Jun-89 13.50 13.54 #N/A
23-Jun-89 13.77 13.86 #N/A
30-Jun-89 13.34 13.23 #N/A
07-Jul-89 13.58 12.36 #N/A
14-Jul-89 13.86 12.26 #N/A
21-Jul-89 14.10 13.27 #N/A
28-Jul-89 14.32 14.23 #N/A
04-Aug-89 14.39 14.36 #N/A
11-Aug-89 14.44 15.32 #N/A
18-Aug-89 14.49 14.82 #N/A
25-Aug-89 14.71 14.04 #N/A
01-Sep-89 14.83 14.51 #N/A
08-Sep-89 14.62 14.61 #N/A
15-Sep-89 14.44 14.13 #N/A
22-Sep-89 14.49 14.51 #N/A
29-Sep-89 14.57 14.99 #N/A
06-Oct-89 15.17 14.45 #N/A
13-Oct-89 14.08 13.48 #N/A
20-Oct-89 14.69 13.79 #N/A
27-Oct-89 14.17 13.18 #N/A
03-Nov-89 14.27 13.07 #N/A
10-Nov-89 14.33 13.30 #N/A
17-Nov-89 14.46 13.61 #N/A
24-Nov-89 14.57 13.65 #N/A
01-Dec-89 14.86 14.02 #N/A
08-Dec-89 14.80 14.02 #N/A
15-Dec-89 14.83 13.34 #N/A
22-Dec-89 14.70 12.87 #N/A
29-Dec-89 14.96 12.77 #N/A
05-Jan-90 15.39 12.29 #N/A
12-Jan-90 14.88 11.88 #N/A
19-Jan-90 14.86 11.27 #N/A
26-Jan-90 14.27 11.05 #N/A
02-Feb-90 14.52 11.73 #N/A
09-Feb-90 14.69 12.23 #N/A
16-Feb-90 14.62 12.23 #N/A
23-Feb-90 14.22 12.07 #N/A
02-Mar-90 14.71 12.92 #N/A
09-Mar-90 14.87 12.96 #N/A
16-Mar-90 15.10 13.25 #N/A
23-Mar-90 14.91 13.40 #N/A
30-Mar-90 15.02 13.42 #N/A
06-Apr-90 15.85 12.80 #N/A
13-Apr-90 16.02 13.01 #N/A
20-Apr-90 15.62 13.45 #N/A
27-Apr-90 15.35 12.89 #N/A
04-May-90 15.79 13.05 #N/A
11-May-90 16.40 13.25 #N/A
18-May-90 16.54 12.94 #N/A
25-May-90 16.57 12.59 #N/A
01-Jun-90 16.99 12.90 #N/A
08-Jun-90 16.72 13.14 #N/A
15-Jun-90 17.02 13.40 #N/A
22-Jun-90 16.71 13.01 #N/A
29-Jun-90 16.85 12.14 #N/A
06-Jul-90 17.08 11.28 #N/A
13-Jul-90 17.61 12.24 #N/A
20-Jul-90 17.33 12.46 #N/A
27-Jul-90 16.90 12.70 #N/A
03-Aug-90 16.46 11.17 #N/A
10-Aug-90 16.01 9.98 #N/A
17-Aug-90 15.64 9.89 #N/A
24-Aug-90 14.91 8.97 #N/A
31-Aug-90 15.45 9.93 #N/A
07-Sep-90 15.47 9.86 #N/A
14-Sep-90 15.15 9.71 #N/A
21-Sep-90 14.84 9.80 #N/A
28-Sep-90 14.58 9.73 #N/A
05-Oct-90 15.10 9.16 #N/A
12-Oct-90 14.46 8.23 #N/A
19-Oct-90 15.11 9.10 #N/A
26-Oct-90 14.75 9.63 #N/A
02-Nov-90 15.01 9.97 #N/A
09-Nov-90 15.10 10.18 #N/A
16-Nov-90 15.26 10.96 #N/A
23-Nov-90 15.21 10.64 #N/A
30-Nov-90 15.55 11.20 #N/A
07-Dec-90 15.78 10.90 #N/A
14-Dec-90 15.74 11.39 #N/A
21-Dec-90 15.96 11.54 #N/A
28-Dec-90 15.85 11.44 #N/A
04-Jan-91 15.48 10.83 #N/A
11-Jan-91 15.21 11.57 #N/A
18-Jan-91 16.08 11.77 #N/A
25-Jan-91 16.33 11.88 #N/A
01-Feb-91 16.68 12.39 #N/A
08-Feb-91 17.45 13.00 #N/A
15-Feb-91 17.93 13.50 #N/A
22-Feb-91 17.81 13.29 #N/A
01-Mar-91 18.06 13.58 #N/A
08-Mar-91 18.38 13.78 #N/A
15-Mar-91 18.28 14.56 #N/A
22-Mar-91 17.94 14.98 #N/A
29-Mar-91 18.29 14.87 #N/A
05-Apr-91 18.88 15.80 28.79
12-Apr-91 19.16 15.35 32.95
19-Apr-91 19.38 14.84 32.45
26-Apr-91 19.11 14.64 32.32
03-May-91 19.22 15.04 33.33
10-May-91 19.03 15.65 32.07
17-May-91 18.83 15.89 30.45
24-May-91 19.11 16.11 31.62
31-May-91 19.75 17.03 30.67
07-Jun-91 19.19 17.03 30.00
14-Jun-91 19.35 18.25 30.56
21-Jun-91 19.14 18.28 30.23
28-Jun-91 18.78 17.90 30.66
05-Jul-91 20.73 17.44 34.57
12-Jul-91 21.08 17.56 34.57
19-Jul-91 21.30 17.64 35.57
26-Jul-91 21.07 17.33 34.88
02-Aug-91 21.45 17.85 34.37
09-Aug-91 21.43 19.29 35.50
16-Aug-91 21.28 18.79 34.24
23-Aug-91 21.79 19.35 36.18
30-Aug-91 21.87 21.21 36.98
06-Sep-91 21.47 20.29 30.63
13-Sep-91 21.13 19.36 31.19
20-Sep-91 21.35 20.06 35.65
27-Sep-91 21.21 20.56 34.21
04-Oct-91 23.38 18.98 34.09
11-Oct-91 23.38 18.90 33.22
18-Oct-91 24.12 20.84 34.93
25-Oct-91 23.58 21.66 33.64
01-Nov-91 23.95 21.97 36.11
08-Nov-91 24.01 22.34 38.32
15-Nov-91 23.38 21.15 40.57
22-Nov-91 23.04 21.30 40.19
29-Nov-91 22.96 21.46 39.19
06-Dec-91 23.18 21.60 40.98
13-Dec-91 23.50 23.20 40.18
20-Dec-91 23.66 24.62 41.55
27-Dec-91 24.88 26.39 45.07
03-Jan-92 29.62 24.77 47.84
10-Jan-92 29.40 23.16 49.08
17-Jan-92 29.76 24.72 47.00
24-Jan-92 29.44 24.54 46.11
31-Jan-92 29.01 23.71 48.77
07-Feb-92 29.25 24.24 57.02
14-Feb-92 29.33 25.11 54.06
21-Feb-92 29.26 25.78 55.50
28-Feb-92 29.34 25.38 54.92
06-Mar-92 28.77 25.75 48.67
13-Mar-92 28.86 25.84 48.45
20-Mar-92 29.22 26.29 50.72
27-Mar-92 28.69 26.66 52.87
03-Apr-92 28.33 23.73 46.97
10-Apr-92 28.51 23.11 48.45
17-Apr-92 29.30 24.84 49.81
24-Apr-92 28.64 24.32 46.70
01-May-92 28.92 23.92 48.35
08-May-92 29.12 24.44 49.23
15-May-92 28.63 24.28 46.96
22-May-92 28.95 24.31 46.39
29-May-92 29.12 23.84 47.11
05-Jun-92 28.95 23.98 41.31
12-Jun-92 28.61 22.45 37.82
19-Jun-92 28.14 21.36 33.99
26-Jun-92 28.08 22.46 35.80
03-Jul-92 27.00 21.60 35.51
10-Jul-92 27.13 22.69 35.38
17-Jul-92 27.26 22.20 36.12
24-Jul-92 26.96 22.39 37.30
31-Jul-92 27.81 24.42 39.06
07-Aug-92 27.45 24.34 36.65
14-Aug-92 27.52 24.02 40.45
21-Aug-92 27.16 23.53 39.93
28-Aug-92 27.23 22.82 37.20
04-Sep-92 27.41 23.55 36.18
11-Sep-92 27.69 24.71 35.73
18-Sep-92 27.91 25.10 38.84
25-Sep-92 27.20 24.60 38.91
02-Oct-92 25.54 23.13 38.30
09-Oct-92 25.03 21.99 36.64
16-Oct-92 25.58 23.87 37.47
23-Oct-92 25.81 25.59 37.76
30-Oct-92 26.06 25.05 38.70
06-Nov-92 26.02 25.54 40.27
13-Nov-92 26.34 25.98 42.76
20-Nov-92 26.59 26.34 43.03
27-Nov-92 26.78 26.61 43.79
04-Dec-92 26.93 27.12 45.22
11-Dec-92 26.99 26.33 43.03
18-Dec-92 27.39 26.49 43.01
25-Dec-92 27.23 28.64 44.08
01-Jan-93 26.06 25.85 43.96
08-Jan-93 25.65 26.30 42.63
15-Jan-93 26.04 26.59 42.50
22-Jan-93 25.91 25.67 40.52
29-Jan-93 26.12 25.62 40.00
05-Feb-93 26.63 27.16 41.25
12-Feb-93 26.35 26.82 41.22
19-Feb-93 25.61 25.26 41.21
26-Feb-93 26.16 25.59 42.21
05-Mar-93 26.36 27.30 42.83
12-Mar-93 26.58 28.08 45.09
19-Mar-93 26.59 28.20 46.07
26-Mar-93 26.35 28.80 45.99
02-Apr-93 24.93 27.46 44.19
09-Apr-93 24.81 27.61 43.25
16-Apr-93 25.13 27.60 45.83
23-Apr-93 24.66 25.46 43.21
30-Apr-93 24.95 24.87 41.54
07-May-93 25.16 25.50 44.41
14-May-93 25.08 22.35 44.82
21-May-93 25.53 23.13 47.79
28-May-93 25.74 23.44 49.51
04-Jun-93 25.72 23.89 48.15
11-Jun-93 25.51 17.62 46.30
18-Jun-93 25.24 18.52 44.82
25-Jun-93 25.33 18.60 43.96
02-Jul-93 27.24 17.84 46.52
09-Jul-93 27.32 17.50 45.63
16-Jul-93 27.14 18.77 45.66
23-Jul-93 27.20 18.50 45.93
30-Jul-93 27.18 19.06 46.43
06-Aug-93 27.21 18.47 47.49
13-Aug-93 27.23 18.54 49.39
20-Aug-93 27.81 19.57 51.59
27-Aug-93 27.98 19.52 50.62
03-Sep-93 27.98 19.15 49.83
10-Sep-93 27.85 19.70 49.58
17-Sep-93 27.66 20.42 49.19
24-Sep-93 27.68 18.58 47.47
01-Oct-93 26.44 18.70 45.85
08-Oct-93 26.46 18.77 46.05
15-Oct-93 27.15 16.39 47.27
22-Oct-93 26.91 16.60 46.85
29-Oct-93 27.25 16.81 49.37
05-Nov-93 26.94 16.43 48.81
12-Nov-93 27.41 16.76 50.75
19-Nov-93 27.33 16.55 49.31
26-Nov-93 27.27 16.24 49.38
03-Dec-93 27.35 17.43 50.54
10-Dec-93 27.31 17.58 50.60
17-Dec-93 27.39 18.54 48.44
24-Dec-93 27.46 18.41 47.92
31-Dec-93 27.49 19.01 50.04
07-Jan-94 24.91 19.22 48.56
14-Jan-94 25.17 20.59 48.87
21-Jan-94 25.20 20.99 49.20
28-Jan-94 25.28 20.12 50.16
04-Feb-94 24.93 21.31 48.69
11-Feb-94 25.00 21.37 49.81
18-Feb-94 24.98 21.42 48.57
25-Feb-94 24.84 21.59 49.34
04-Mar-94 24.81 22.44 48.61
11-Mar-94 24.93 21.51 49.49
18-Mar-94 25.19 21.82 50.39
25-Mar-94 24.57 21.45 48.53
01-Apr-94 22.84 20.04 45.99
08-Apr-94 22.90 20.86 46.77
15-Apr-94 22.70 20.63 46.46
22-Apr-94 22.75 21.39 46.01
29-Apr-94 23.01 20.49 48.48
06-May-94 22.91 20.38 48.09
13-May-94 22.77 19.48 45.50
20-May-94 23.25 20.47 44.50
27-May-94 23.37 20.79 45.87
03-Jun-94 23.48 20.49 43.56
10-Jun-94 23.31 20.43 43.89
17-Jun-94 23.36 19.77 42.61
24-Jun-94 22.58 18.95 38.34
01-Jul-94 19.59 18.04 40.14
08-Jul-94 19.77 18.28 37.92
15-Jul-94 19.98 18.88 37.90
22-Jul-94 19.97 18.35 37.26
29-Jul-94 20.18 18.79 38.21
05-Aug-94 20.11 18.74 37.43
12-Aug-94 20.34 18.20 36.30
17-Aug-94 20.55 18.66 36.18
INDEX1 is a composite of: BRD, CTB, SAME, TBCC
INDEX2 is a composite of: AZO, DAP, HLO, ORLY
Source: Tradeline Daily Prices/S&P Compustat 12-Month Earnings
<PAGE>
PART III
SELECTED COMPARABLE COMPANY ANALYSIS
<PAGE>
<PAGE>
SUMMARY ANALYSIS OF COMPARABLE COMPANIES
<TABLE>
<CAPTION>
Summary Analysis of Comparable Companies
($ in millions, Discount Auto Hi-Lo O Reilly
except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
___________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
PRICE & CAPITALIZATION DATA
Latest Price per Share (8/19/94) $15.25 $22.75 $21.63 $11.63 $25.25
Market Value of Common Equity $49.8 $3,299.0 $300.7 $124.4 $218.6
Total Preferred Equity
Total Debt 25.1 4.3 66.5 33.7 1.0
Other Long-Term Liabilities 0.6 10.6 4.1 0.6
Less: Cash & Equivalents (5.7) (73.6) (8.3) (1.0) (7.2)
________________________________________________________________________________
TOTAL VALUE $69.7 $3,240.3 $358.8 $161.2 $213.0
________________________________________________________________________________________________________________
VALUATION DATA
MEAN
MEDIAN
Total Value/LTM Revenues 0.6 x 2.3 x 1.8 x 0.7 x 1.4 x 1.6 x 1.6 x
Total Value/LTM EBITDA 9.1 16.1 12.1 8.2 12.7 12.3 12.4
Total Value/3-yr Avg. EBITDA 9.7 NMF 17.2 8.2 16.7 14.0 16.7
Total Value/LTM EBIT 11.5 18.8 14.5 11.4 15.2 15.0 14.8
Total Value/Total
Capitalization 1.2 6.5 2.2 1.1 3.2 3.3 2.7
Total Value/Total Assets 0.9 3.8 2.0 0.9 2.6 2.3 2.3
Price/
LTM EPS 19.1 x 17.5 x 22.1 x 15.5 x 23.8 x 19.7 x 19.8 x
Price/Projected Est.
1 EPS 17.9 28.1 19.1 13.2 21.0 20.4 20.1
Price/Projected Est. 2 EPS NA 22.8 15.3 11.3 17.4 16.7 16.4
Equity Value/LTM Cash Flow 9.9 25.9 18.0 9.3 19.4 18.1 18.7
Equity Value/Book Value 1.7 6.9 3.2 1.2 3.4 3.7 3.3
________________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Jun-1994 Jun-1994 Jun-1994 Jun-1994 Jun-1994
Total Revenues $121.6 $1,423.4 $198.2 $221.7 $153.2
EBIT 6.1 172.4 24.8 14.1 14.0
EBITDA 7.7 201.2 29.7 19.6 16.8
Net Income 2.7 105.1 11.9 7.9 9.1
Cash Flow 5.0 127.2 16.7 13.4 11.3
EBIT Margin 5.0% 12.1% 12.5% 6.4% 9.1% 10.0% 10.6%
EBITDA Margin 6.3 14.1 15.0 8.9 10.9 12.2 12.5
Return on Avg. Net
Capitalization 11.7 48.8 19.4 10.8 29.3 27.1 24.3
Net Income Margin 2.2 7.4 6.0 3.6 6.0 5.7 6.0
Return on Avg.
Common Equity 8.5 25.1 13.8 7.7 15.5 15.5 14.6
Cash Flow/Total Assets 6.8 15.0 9.2 7.8 14.0 11.5 11.6
</TABLE>
<TABLE>
<CAPTION>
($ in millions, Discount Auto Hi-Lo O Reilly
except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
___________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA
Total Assets $74.7 $845.9 $181.0 $172.9 $80.9
Total Capitalization 58.6 496.3 159.9 148.4 65.7
Common Equity 33.0 478.5 93.4 106.5 64.1
Debt/Total Capitalization 42.8% 0.9% 41.6% 22.7% 1.6%
Shares Outstanding 3.3 145.0 13.9 10.7 8.7
___________________________________________________________________________________________________________________________
PERFORMANCE VARIABLES
3-YEAR GROWTH RATES
Total Revenues 3.9% 22.0% 27.5% 14.8% 20.2%
EBITDA 2.1 34.7 29.2 (6.3) 19.3
Net Income 13.4 40.3 46.2 (1.4) 22.9
Cash Flow (1.8) 42.7 36.3 (1.5) 22.6
Total Assets (0.4) 32.2 25.8 12.3 21.5
3-YEAR AVERAGES
EBITDA Margin 6.0% 12.0% 14.6% 11.0% 11.2%
Net Income Margin 2.0 6.3 5.8 4.1 5.8
</TABLE>
<PAGE>
SUMMARY ANALYSIS OF COMPARABLE COMPANIES
<TABLE>
($ in millions, Cooper Tire &
except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
___________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
PRICE & CAPITALIZATION DATA
Latest Price per Share (8/19/94) $15.25 $31.50 $24.50 $1.19 $10.13
Market Value of Common Equity $49.8 $69.0 $2,048.8 $1.7 $283.6
Total Preferred Equity
Total Debt 25.1 31.6 43.7 4.6 40.3
Other Long-Term Liabilities 0.6 4.5 185.3 0.3 0.3
Less: Cash & Equivalents (5.7) (0.7) (28.7) (0.1)
TOTAL VALUE $69.7 $104.4 $2,249.1 $6.6 $324.2
___________________________________________________________________________________________________________________________
VALUATION DATA
MEAN MEDIAN
Total Value/LTM Revenues 0.6 x 0.4 x 1.8 x 0.3 x 0.6 x 0.8 x 0.5 x
Total Value/LTM EBITDA 9.1 14.1 9.9 NMF 9.4 11.1 9.9
Total Value/3-yr Avg. EBITDA 9.7 NMF 11.6 7.0 9.3 9.3 9.3
Total Value/LTM EBIT 11.5 16.9 12.8 14.1 10.6 13.6 13.4
Total Value/Total
Capitalization 1.2 1.3 2.7 0.8 2.0 1.7 1.6
Total Value/Total Assets 0.9 0.8 2.3 0.7 1.7 1.4 1.3
Price/LTM EPS 19.1 x 16.8 x 19.1 x 26.1 x 14.7 x 19.2 x 18.0 x
Price/Projected Est. 1 EPS 17.9 NA 17.0 NA 12.7 14.8 14.8
Price/Projected Est. 2 EPS NA NA 14.7 NA 11.1 12.9 12.9
Equity Value/LTM Cash Flow 9.9 13.6 12.2 3.1 12.1 10.2 12.1
Equity Value/Book Value 1.7 1.5 3.4 0.6 2.4 2.0 1.9
___________________________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Jun-1994 Jun-1994 Jun-1994 Jun-1994 Jun-1994
Total Revenues $121.6 $243.7 $1,280.3 $19.0 $555.3
EBIT 6.1 6.2 176.1 0.5 30.5
EBITDA 7.7 7.4 226.6 0.8 34.6
Net Income 2.7 4.2 107.0 0.1 19.5
Cash Flow 5.0 5.1 168.5 0.5 23.5
EBIT Margin 5.0% 2.5% 13.8% 2.5% 5.5% 6.1% 4.0%
EBITDA Margin 6.3 3.0 17.7 4.3 6.2 7.8 5.3
Return on Avg. Net
Capitalization 11.7 7.6 23.2 6.0 18.3 13.8 12.9
Net Income Margin 2.2 1.7 8.4 0.3 3.5 3.5 2.6
Return on Avg. Common Equity 8.5 9.3 19.3 2.2 17.1 12.0 13.2
Cash Flow/Total Assets 6.8 4.0 17.6 5.4 12.4 9.9 8.9
</TABLE>
<TABLE>
<CAPTION>
($ in millions, Cooper Tire &
except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
___________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
BALANCE SHEET DATA
Total Assets $74.7 $125.8 $959.5 $9.9 $189.7
Total Capitalization 58.6 83.0 848.5 7.9 161.0
Common Equity 33.0 46.9 595.4 3.0 120.4
Debt/Total Capitalization 42.8% 38.1% 5.2% 58.6% 25.0%
Shares Outstanding 3.3 2.2 83.6 1.4 28.0
___________________________________________________________________________________________________________________________
PERFORMANCE VARIABLES
3-Year Growth Rates
Total Revenues 3.9% 8.1% 9.2% 0.8% 6.7%
EBITDA 2.1 NMF 15.0 (9.0) 11.9
Net Income 13.4 NMF 13.4 (34.0) 10.0
Cash Flow (1.8) NMF 16.6 (6.4) 15.2
Total Assets (0.4) 3.9 15.2 0.4 11.0
3-YEAR AVERAGES
EBITDA Margin 6.0% 1.2% 17.3% 5.0% 6.4%
Net Income Margin 2.0 (0.1) 8.6 0.8 3.7
</TABLE>
<PAGE>
PART IV
DETERMINATION OF EXERCISE PRICE
<PAGE>
DETERMINATION OF EXERCISE PRICE
<TABLE>
IMPLIED STOCK PRICE ANALYSIS
Estimated
EPS Assuming P/E Multiple Range of:
FY 2004 16x 18x 20x 22x 24x
<S> <C> <C> <C> <C> <C>
$2.55 $40.82 $45.92 $51.02 $56.12 $61.23
</TABLE>
<TABLE>
<CAPTION>
IMPLIED TEN YEAR RETURN TO SHAREHOLDERS
Estimated
EPS Assuming P/E Multiple Range of:
FY 2004 16x 18x 20x 22x 24x
<S> <C> <C> <C> <C> <C>
$2.55 10.1% 11.4% 12.6% 13.7% 14.7%
</TABLE>
<TABLE>
<CAPTION>
MULTIPLE OF EXERCISE PRICE/STOCK PRICE
Stock EXERCISE PRICE
Price $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 $70.00
<S> <C> <C> <C> <C> <C> <C> <C>
$13.50 2.96 x 3.33 x 3.70 x 4.07 x 4.44 x 4.81 x 5.19 x
$14.00 2.86 x 3.21 x 3.57 x 3.93 x 4.29 x 4.64 x 5.00 x
$14.50 2.76 x 3.10 x 3.45 x 3.79 x 4.14 x 4.48 x 4.83 x
$15.00 2.67 x 3.00 x 3.33 x 3.67 x 4.00 x 4.33 x 4.67 x
$15.50 2.58 x 2.90 x 3.23 x 3.55 x 3.87 x 4.19 x 4.52 x
$16.00 2.50 x 2.81 x 3.13 x 3.44 x 3.75 x 4.06 x 4.38 x
$16.50 2.42 x 2.73 x 3.03 x 3.33 x 3.64 x 3.94 x 4.24 x
$17.00 2.35 x 2.65 x 2.94 x 3.24 x 3.53 x 3.82 x 4.12 x
$17.50 2.29 x 2.57 x 2.86 x 3.14 x 3.43 x 3.71 x 4.00 x
Note: Average Stock Price Over Last 30 Days: $15.57
</TABLE>
<PAGE>
PART V
HYPOTHETICAL EFFECT ON CAPITALIZATION
<PAGE>
HYPOTHETICAL EFFECT ON CAPITALIZATION
($ IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
30 Day Average Triggering
Stock Price $15.57 Percentage 15.0%
Exercise Common Equivalent of
Price $60.00 New Shares Issued 21.39
<TABLE>
<CAPTION>
PRO FORMA
AS OF EXERCISE
JUNE 30, 1994 ADJUSTMENTS OF RIGHTS
_____________ ___________ _________
<S> <C> <C> <C>
Total Debt $25.1 $25.1
Shareholders' Equity 33.0 166.5 199.5
Total Capitalization 58.0 166.5 224.6
Shares Outstanding 3.27 21.4 24.7
Increase in Shares Outstanding 655.1%
New (%) Owned by Acquiror 1.99%
(%) Dilution to Acquiror (86.8%)
</TABLE>
<PAGE>
PART VI
SUMMARY PRICING AND TRADING INFORMATION ON
COMPANIES ADOPTING SHAREHOLDERS' RIGHTS PLANS
<PAGE>
SUMMARY PRICING AND TRADING INFORMATION ON COMPANIES ADOPTING
SHAREHOLDERS' RIGHTS PLANS (a)
<TABLE>
<CAPTION>
Average Percentage Change Average Percentage Change
of Stock Price from: of S&P 400 Index from:
20 Business Date of 20 Business Date of
Days Prior to Date Announcement Days Prior to Date Announcement
Number Average of Announcement to 20 Business Days of Announcement to 20 Business Days
of Exercise/ Median to Date of After Date of to Date of After Date of
Date Companies Market % Change Announcement Announcement Announcement Announcement
____ _________ ______ ________ ____________ ____________ ____________ ___________________
<S> <C> <C> <C> <C> <C> <C> <C>
1-Jan-94 20 4.58 x Absolute 3.60% 3.62% 0.08% 0.40%
Present Net (b) 3.52% 3.22%
1-Jan-93 38 5.08 x Absolute 1.72% (2.23%) 0.51% 0.30%
31-Dec-93 Net (b) 1.21% (2.53%)
1-Jan-92 47 4.81 x Absolute 0.93% (0.41%) (0.22%) (0.37%)
31-Dec-92 Net (b) 1.15% (0.04%)
1-Jan-91 98 4.29 x Absolute 0.00% 4.27% 0.60% 0.82%
31-Dec-91 Net (b) 1.82% 5.61%
1-Jan-90 152 4.58 x Absolute (2.44%) (2.02%) 0.09% (0.18%)
31-Dec-90 Net (b) (2.36%) 6.48%
1-Jan-89 329 4.21 x (c) Absolute 1.47% 0.39% 2.38% 1.62%
31-Dec-89 Net (b) (0.37%) 8.76%
1-Jan-88 306 4.44 x (c) Absolute 3.07% 1.49% 1.90% 1.98%
31-Dec-88 Net (b) 1.92% 1.68%
</TABLE>
_____________________________
(a) Information provided by Prentice Hall Legal and Financial Services
(b) As compared to the S&P 400 Industrial Index.
(c) Average Exercise/Market price does not include certain companies which were
deemed to be large outlying computations.
<PAGE>
EXHIBIT ______ TO FORM __________
DATED ___________________________
PROJECT SNOW
REVIEW OF
STRATEGIC ALTERNATIVES
SEPTEMBER 12, 1994
<PAGE>
TABLE OF CONTENTS
PART I OVERVIEW
PART II STATUS QUO
PART III SHARE REPURCHASE PROGRAM
PART IV EXTRAORDINARY DIVIDEND
PART V LEVERAGED/MANAGEMENT BUYOUT
PART VI MERGER/SALE OF COMPANY TO STRATEGIC BUYER
PART VII SUMMARY RESULTS
THE ANALYSES SET FORTH HEREIN WERE PREPARED BY PAINEWEBBER INCORPORATED
("PAINEWEBBER") BASED UPON FACTUAL INFORMATION OBTAINED FROM THE COMPANY AND
OTHER SOURCES, INCLUDING ESTIMATES AND PROJECTIONS PREPARED BY THE MANAGEMENT OF
THE COMPANY. PAINEWEBBER HAS NOT INDEPENDENTLY VERIFIED THE ACCURACY OF ANY
SUCH INFORMATION NOR HAS PAINEWEBBER VERIFIED THE REASONABLENESS OF ANY OF THE
ASSUMPTIONS UNDERLYING ANY SUCH ESTIMATES OR PROJECTIONS. PAINEWEBBER ASSUMES
NO RESPONSIBILITY FOR THE ACCURACY OR COMPLETENESS OR ANY SUCH INFORMATION,
ESTIMATES OR PROJECTIONS AND MAKES NO REPRESENTATION OR WARRANTY, EXPRESSED OR
IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION PROVIDED TO OR
OTHERWISE RELIED UPON BY PAINEWEBBER IN CONNECTION WITH THIS REPORT. ANY CHANGE
IN THE ASSUMPTIONS USED BY THE COMPANY IN PREPARING ITS ESTIMATES AND
PROJECTIONS (WHICH ASSUMPTIONS INVOLVE SUBSTANTIAL ELEMENTS OF SUBJECTIVE
JUDGEMENT) COULD HAVE RESULTED IN A DIFFERENT RESULT OR CONCLUSION BEING REACHED
BY PAINEWEBBER IN THIS REPORT.
<PAGE>
PART I
OVERVIEW
<PAGE>
OVERVIEW
SCOPE OF ASSIGNMENT
Excerpts from July 5, 1994 Press Release:
Snow has hired PaineWebber to "evaluate alternatives for enhancing the company's
value."
Snow asked PaineWebber to review its current financial model and business plan
and develop an analysis of financial alternatives available to the company.
GOAL: MAXIMIZE VALUE FOR ALL SHAREHOLDERS
<PAGE>
OVERVIEW
HISTORICAL PERSPECTIVE - STOCK PRICE TIMELINE
[LINE GRAPH APPEARS HERE]
DATE STOCK PRICE COMMENTS
06/11/92 9.375000 REVERSE STOCK SPLIT
06/12/92 9.375000
06/15/92 9.375000
06/16/92 8.875000
06/17/92 8.625000
06/18/92 8.375000
06/19/92 8.250000
06/22/92 8.000000
06/23/92 8.000000
06/24/92 7.815000
06/25/92 7.565000
06/26/92 7.690000
06/29/92 7.755000
06/30/92 7.690000
07/01/92 7.690000
07/02/92 7.690000
07/06/92 7.690000
07/07/92 7.755000
07/08/92 7.565000
07/09/92 7.625000
07/10/92 7.505000
07/13/92 7.565000
07/14/92 7.440000
07/15/92 7.565000
07/16/92 7.625000
07/17/92 7.625000
07/20/92 7.940000
07/21/92 8.625000
07/22/92 9.065000
07/23/92 9.815000
07/24/92 9.755000
07/27/92 9.690000
07/28/92 9.125000
07/29/92 8.940000
07/30/92 8.625000
07/31/92 8.815000
08/03/92 8.840000
08/04/92 9.440000
08/05/92 10.030000
08/06/92 10.755000
08/07/92 11.215000
08/10/92 11.340000
08/11/92 11.315000
08/12/92 11.440000
08/13/92 11.690000
08/14/92 11.965000
08/17/92 12.190000
08/18/92 12.280000
08/19/92 12.440000
08/20/92 12.815000
08/21/92 13.125000
08/24/92 12.875000
08/25/92 12.875000
08/26/92 13.005000
08/27/92 13.005000
08/28/92 12.940000
08/31/92 12.690000
09/01/92 12.815000
09/02/92 12.190000
09/03/92 11.625000
09/04/92 11.250000
09/08/92 11.250000
09/09/92 11.750000
09/10/92 12.625000
09/11/92 13.565000
09/14/92 14.125000
09/15/92 13.125000
09/16/92 13.190000
09/17/92 13.440000
09/18/92 13.440000
09/21/92 13.380000
09/22/92 13.250000
09/23/92 13.250000
09/24/92 13.250000
09/25/92 12.750000
09/28/92 12.315000
09/29/92 11.875000
09/30/92 11.880000
10/01/92 12.000000
10/02/92 12.125000
10/05/92 11.875000
10/06/92 11.750000
10/07/92 11.750000
10/08/92 11.500000
10/09/92 11.625000
10/12/92 11.500000
10/13/92 11.065000
10/14/92 12.005000
10/15/92 12.500000
10/16/92 13.000000
10/19/92 13.125000
10/20/92 13.125000
10/21/92 12.755000
10/22/92 12.125000
10/23/92 11.940000
10/26/92 11.875000
10/27/92 11.875000
10/28/92 11.625000
10/29/92 11.500000
10/30/92 11.750000
11/02/92 11.875000
11/03/92 11.625000
11/04/92 11.625000
11/05/92 11.625000
11/06/92 11.750000
11/09/92 11.815000
11/10/92 12.690000
11/11/92 13.315000
11/12/92 13.315000
11/13/92 13.315000
11/16/92 13.315000
11/17/92 13.375000
11/18/92 13.880000
11/19/92 13.625000
11/20/92 13.440000
11/23/92 13.815000
11/24/92 13.750000
11/27/92 14.000000
11/30/92 14.000000
12/01/92 14.190000
12/02/92 14.125000
12/03/92 14.565000
12/04/92 14.440000
12/07/92 14.505000
12/08/92 14.190000
12/09/92 13.690000
12/10/92 13.065000
12/11/92 13.065000
12/14/92 13.125000
12/15/92 13.440000
12/16/92 13.500000
12/17/92 13.500000
12/18/92 13.690000
12/21/92 13.625000
12/22/92 13.250000
12/23/92 13.505000
12/28/92 13.565000
12/30/92 13.565000
12/31/92 13.375000
01/01/93 13.130000
01/04/93 13.500000
01/05/93 13.000000
01/06/93 13.500000
01/07/93 13.375000
01/08/93 13.375000
01/11/93 12.500000
01/12/93 12.750000
01/13/93 12.500000
01/14/93 12.875000
01/15/93 12.625000
01/18/93 12.125000
01/19/93 12.125000
01/20/93 11.750000
01/21/93 12.250000
01/22/93 12.250000
01/25/93 12.250000
01/26/93 13.250000
01/27/93 13.250000
01/28/93 13.500000
01/29/93 13.750000
02/01/93 13.500000
02/02/93 13.750000
02/03/93 13.500000
02/04/93 13.000000
02/05/93 12.500000
02/08/93 12.380000
02/09/93 14.000000
02/10/93 13.130000
02/11/93 13.630000
02/12/93 13.630000
02/16/93 13.250000
02/17/93 12.750000
02/18/93 13.000000
02/19/93 13.380000
02/22/93 13.000000
02/23/93 12.630000
02/24/93 12.880000
02/25/93 13.130000
02/26/93 13.500000
03/01/93 13.880000
03/02/93 13.750000
03/03/93 13.750000
03/04/93 13.130000
03/05/93 12.880000
03/08/93 13.000000
03/09/93 12.750000
03/10/93 12.380000
03/11/93 12.500000
03/12/93 12.000000
03/15/93 12.630000
03/16/93 12.130000
03/17/93 12.250000
03/18/93 12.250000
03/19/93 12.380000
03/22/93 12.380000
03/23/93 12.000000
03/24/93 11.880000
03/25/93 11.750000
03/26/93 12.250000
03/29/93 11.500000
03/30/93 11.380000
03/31/93 12.250000
04/02/93 12.000000
04/05/93 11.380000
04/06/93 11.130000
04/07/93 11.880000
04/08/93 13.250000
04/12/93 13.000000
04/13/93 13.130000
04/14/93 12.500000
04/15/93 12.750000
04/16/93 12.250000
04/19/93 12.880000
04/20/93 12.250000
04/21/93 12.750000
04/22/93 12.750000
04/23/93 12.750000
04/26/93 13.130000
04/28/93 12.630000
04/29/93 12.630000
04/30/93 12.750000
05/03/93 12.880000
05/04/93 13.750000
05/05/93 13.500000
05/06/93 13.250000
05/07/93 13.250000
05/10/93 13.380000
05/11/93 13.500000
05/12/93 13.630000
05/13/93 13.250000
05/14/93 13.130000
05/17/93 13.125000
05/18/93 13.630000
05/19/93 13.000000
05/20/93 13.000000
05/21/93 13.630000
05/24/93 13.000000
05/25/93 13.500000
05/26/93 13.250000
05/27/93 13.500000
05/28/93 13.630000
06/01/93 13.500000
06/02/93 15.250000
06/03/93 15.880000
06/04/93 15.750000
06/07/93 14.880000
06/08/93 14.750000
06/09/93 15.880000 ROLL-OUT OF NEW LAS VEGAS CENTER
06/10/93 15.500000
06/11/93 14.500000
06/14/93 14.750000
06/15/93 14.750000
06/16/93 14.250000
06/17/93 14.130000
06/18/93 14.500000
06/21/93 14.250000
06/22/93 14.750000
06/23/93 14.380000
06/24/93 14.750000
06/25/93 15.000000
06/28/93 14.750000
06/29/93 15.250000
06/30/93 15.000000
07/01/93 15.000000
07/02/93 15.250000
07/06/93 15.000000
07/07/93 15.250000
07/08/93 15.130000
07/09/93 14.000000
07/12/93 13.380000
07/13/93 14.500000
07/14/93 14.500000
07/15/93 15.250000
07/16/93 15.130000
07/19/93 14.880000
07/20/93 15.000000
07/21/93 14.380000
07/22/93 14.380000
07/23/93 15.000000
07/26/93 14.630000
07/27/93 14.880000
07/28/93 15.500000
07/29/93 15.500000
07/30/93 15.630000
08/02/93 16.130000
08/03/93 15.750000
08/04/93 15.250000
08/05/93 15.380000
08/06/93 15.880000
08/09/93 15.880000
08/10/93 16.630000
08/11/93 16.250000
08/12/93 17.000000
08/13/93 16.750000
08/16/93 16.250000
08/17/93 16.500000
08/18/93 16.750000
08/19/93 16.750000
08/20/93 16.630000
08/23/93 16.250000
08/24/93 16.250000
08/25/93 16.750000
08/26/93 16.250000
08/27/93 16.380000
08/30/93 16.630000
08/31/93 16.500000
09/01/93 17.130000
09/02/93 16.500000
09/03/93 17.000000
09/07/93 16.250000
09/08/93 16.500000
09/09/93 16.500000
09/10/93 16.000000
09/13/93 16.000000
09/14/93 15.750000
09/15/93 16.000000
09/16/93 16.000000
09/17/93 16.250000
09/20/93 16.250000
09/21/93 15.500000
09/22/93 15.750000
09/23/93 15.500000
09/24/93 15.000000
09/27/93 14.750000
09/28/93 15.000000
09/29/93 14.880000
09/30/93 15.130000
10/01/93 15.000000
10/04/93 15.000000
10/05/93 15.000000
10/06/93 15.250000
10/07/93 14.750000
10/08/93 15.250000
10/11/93 15.000000
10/12/93 15.130000
10/13/93 15.000000
10/14/93 15.000000
10/15/93 16.000000
10/18/93 15.750000
10/19/93 15.880000
10/20/93 15.250000
10/21/93 15.500000
10/22/93 14.750000
10/25/93 15.500000
10/26/93 15.500000
10/27/93 16.250000
10/28/93 15.880000
10/29/93 16.130000
11/01/93 16.000000
11/02/93 15.500000
11/03/93 16.000000
11/04/93 15.250000
11/05/93 14.630000
11/08/93 15.250000
11/09/93 15.500000
11/10/93 15.250000
11/11/93 14.880000
11/12/93 14.880000
11/15/93 15.000000
11/16/93 14.750000
11/17/93 14.750000
11/18/93 15.000000
11/19/93 14.630000
11/22/93 14.250000
11/23/93 14.380000
11/29/93 14.380000
11/30/93 15.000000
12/01/93 15.250000
12/02/93 15.500000
12/03/93 15.500000
12/06/93 15.250000
12/07/93 15.250000
12/08/93 15.250000
12/10/93 15.375000
12/13/93 14.750000
12/14/93 14.250000
12/15/93 14.250000
12/16/93 14.375000
12/17/93 14.125000
12/20/93 13.875000
12/21/93 14.750000
12/22/93 14.500000
12/23/93 14.875000
12/27/93 14.875000
12/28/93 14.625000
12/30/93 14.250000
12/31/93 14.250000
01/01/94 14.250000
01/03/94 14.125000
01/04/94 13.875000
01/05/94 14.000000
01/06/94 14.500000
01/07/94 14.000000
01/10/94 14.000000
01/11/94 13.750000
01/12/94 14.000000
01/13/94 13.500000
01/14/94 13.750000
01/17/94 13.500000
01/18/94 13.000000
01/19/94 13.750000
01/20/94 13.375000
01/21/94 13.500000
01/24/94 13.500000
01/25/94 13.125000
01/26/94 13.125000
01/27/94 13.125000
01/28/94 13.625000
01/31/94 14.250000
02/01/94 15.750000
02/02/94 15.500000
02/03/94 15.750000
02/04/94 15.500000
02/07/94 15.375000
02/08/94 15.000000
02/09/94 14.750000
02/10/94 14.500000
02/11/94 14.500000
02/14/94 14.750000
02/15/94 14.500000
02/16/94 14.500000
02/17/94 14.750000
02/18/94 14.375000
02/22/94 14.375000
02/23/94 14.750000
02/24/94 14.750000
02/25/94 13.750000
02/28/94 13.625000
03/01/94 14.250000
03/02/94 13.375000
03/03/94 14.000000
03/04/94 14.000000
03/07/94 14.625000
03/08/94 14.875000
03/09/94 14.875000
03/10/94 14.500000
03/11/94 14.875000
03/14/94 14.625000
03/15/94 15.250000
03/16/94 14.875000
03/17/94 14.750000
03/18/94 15.250000
03/21/94 15.375000
03/22/94 15.750000
03/23/94 15.750000
03/24/94 15.500000
03/25/94 16.000000
03/28/94 16.000000
03/29/94 15.000000
03/30/94 15.500000
03/31/94 14.750000
04/04/94 13.125000
04/05/94 14.750000
04/06/94 14.000000
04/07/94 14.375000
04/08/94 13.875000
04/11/94 13.750000
04/12/94 14.250000
04/13/94 14.000000
04/15/94 15.375000
04/18/94 14.750000
04/19/94 14.500000
04/20/94 14.625000
04/21/94 15.000000
04/22/94 15.375000
04/25/94 15.000000
04/26/94 15.500000
04/28/94 15.500000
04/29/94 15.125000
05/02/94 15.500000
05/03/94 15.750000
05/04/94 15.750000
05/05/94 15.500000
05/06/94 15.000000
05/09/94 15.750000
05/10/94 15.250000
05/11/94 14.750000
05/12/94 14.625000
05/13/94 14.625000
05/17/94 15.250000
05/18/94 15.500000
05/19/94 16.000000
05/20/94 15.500000
05/23/94 15.750000 M. KANE & CO. HIRED TO EVALUATE NEW STORE ACQUISITIONS
05/24/94 15.250000
05/25/94 15.000000
05/26/94 15.000000
05/27/94 15.000000
05/31/94 15.000000
06/01/94 15.250000
06/02/94 15.375000
06/03/94 15.250000
06/06/94 15.750000
06/07/94 15.625000
06/08/94 15.625000 STOCKHOLDERS APPROVE PROPOSAL TO EXPLORE ALTERNATIVES
06/09/94 16.000000
06/10/94 15.500000
06/13/94 15.500000
06/14/94 15.750000
06/15/94 16.125000
06/16/94 16.375000
06/17/94 16.750000
06/20/94 15.875000
06/21/94 16.250000
06/22/94 15.750000
06/23/94 15.750000
06/24/94 15.250000
06/27/94 16.000000
06/28/94 16.250000
06/29/94 16.250000
07/01/94 15.750000
07/05/94 15.250000 PAINEWEBBER HIRED TO EVALUATE ALTERNATIVES
07/06/94 14.750000
07/07/94 14.750000
07/08/94 15.250000
07/11/94 15.000000
07/12/94 15.500000
07/13/94 15.630000
07/14/94 15.750000
07/15/94 15.750000
07/18/94 15.000000
07/19/94 16.250000
07/20/94 15.630000
07/21/94 15.630000
07/22/94 16.250000
07/25/94 15.750000
07/26/94 15.880000
07/27/94 15.750000
07/28/94 15.750000
07/29/94 15.750000
08/01/94 15.750000 ANNOUNCES NEW MARKETING PROGRAM
08/02/94 15.500000
08/03/94 15.630000
08/04/94 15.630000
08/05/94 15.437500
08/08/94 15.000000
08/09/94 15.000000
08/10/94 15.750000
08/11/94 15.000000
08/12/94 15.630000
08/15/94 15.130000
08/16/94 15.630000
08/17/94 15.250000
08/19/94 16.000000
08/22/94 15.880000
08/23/94 15.750000
08/24/94 15.380000
08/25/94 15.750000
08/26/94 15.380000 BOARD APPROVES SHAREHOLDER RIGHTS PLAN
08/29/94 14.880000
08/30/94 15.750000
08/31/94 15.750000
09/01/94 15.880000
<PAGE>
OVERVIEW
HISTORICAL PERSPECTIVE
[ONE BAR GRAPH APPEARS HERE]
MEASUREMENT PT-
FYE SALES $ NET INCOME $ EPS $
12/31/88 93,520,000 1,279,000 0.43
12/31/89 108,230,000 1,300,000 0.40
12/31/90 106,900,000 710,000 0.20
12/31/91 113,840,000 1,930,000 0.55
12/31/92 119,800,000 2,780,000 0.80
12/31/93 122,960,000 2,479,000 0.73
<PAGE>
OVERVIEW
OUTLOOK
[ONE BAR GRAPH APPEARS HERE]
MEASUREMENT PT-
FYE SALES $ NET INCOME $ EPS $
12/31/94 125,832,000 2,415,000 0.72
12/31/95 135,854,000 2,794,000 0.82
12/31/96 150,201,000 4,768,000 1.39
12/31/97 167,581,000 7,035,000 2.05
12/31/98 185,075,000 8,763,000 2.54
12/31/99 202,805,000 10,192,000 2.95
<PAGE>
OVERVIEW
HISTORICAL PERSPECTIVE
[ONE BAR GRAPH APPEARS HERE]
MEASUREMENT PT-
FYE SALES/ SALES/ NET INCOME/ NET INCOME/
BUDGET $ ACTUALS $ BUDGET $ ACTUAL $
12/31/1992 118,384,000 119,799,000 2,650,000 2,783,000
12/31/1993 128,602,000 122,960,000 3,165,000 1,595,000
1994 61,838,000 57,479,000 1,260,000 854,000
(FIRST 6 MONTHS)
<PAGE>
OVERVIEW
PAST VERSUS FUTURE
[2 BAR GRAPHS APPEAR HERE]
MEASUREMENT PT-
PAST SALES FYE $
12/31/88 93,523,000
12/31/89 108,228,000
12/31/90 106,902,000
12/31/91 113,836,000
12/31/92 119,799,000
12/31/93 122,960,000
FUTURE SALES FYE $
12/31/94 125,832,000
12/31/95 135,854,000
12/31/96 150,201,000
12/31/97 167,581,000
12/31/98 185,075,000
12/31/99 202,805,000
<PAGE>
OVERVIEW
PAST VERSUS FUTURE
[TWO BAR GRAPHS APPEAR HERE]
MEASUREMENT PT-
PAST NET INCOME FYE $
12/31/88 1,530,000
12/31/89 1,612,000
12/31/90 707,000
12/31/91 1,751,000
12/31/92 2,783,000
12/31/93 1,595,000
FUTURE NET INCOME FYE $
12/31/94 2,415,000
12/31/95 2,794,000
12/31/96 4,768,000
12/31/97 7,035,000
12/31/98 8,763,000
12/31/99 10,197,000
<PAGE>
OVERVIEW
PAST VERSUS FUTURE
[TWO BAR GRAPHS APPEAR HERE)]
MEASUREMENT PT-
PAST EARNINGS PER SHARE FYE $
12/31/88 0.43
12/31/89 0.40
12/31/90 0.20
12/31/91 0.55
12/31/92 0.80
12/31/93 0.73
FUTURE EARNINGS PER SHARE FYE $
12/31/94 0.72
12/31/95 0.82
12/31/96 1.39
12/31/97 2.05
12/31/98 2.54
12/31/99 2.95
<PAGE>
OVERVIEW
DESCRIPTION OF ANALYSES PERFORMED
In conjunction with the Company's management team and Board of Directors,
PaineWebber reviewed the following forecasts:
- Aggressive Growth Case
- Moderate Growth Case
PaineWebber reviewed the following alternatives using the forecast cases:
- Status Quo
- Share Repurchase Program
- Extraordinary Dividend
- Leveraged/Management Buyout
- Merger or Sale of Company to a Strategic Buyer
<PAGE>
PART II
STATUS QUO
<PAGE>
STATUS QUO
SUMMARY FORECAST DESCRIPTION
AGGRESSIVE GROWTH CASE
- New Marketing Plan Executed According to Current Business Plan
- Full Roll-Out of Spec Store Development Program
- Store Openings Based on Current Business Plan
<TABLE>
<CAPTION>
2nd
Half
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Stores Opened 18 45 55 55 60 60
Stores Closed 4 5 5 5 10 10
__ __ __ __ __ __
Net New Stores 14 40 50 50 50 50
</TABLE>
MODERATE GROWTH CASE
- New Store Roll-Out and Spec Store Development Program Reduced by
Approximately 50%
<TABLE>
<CAPTION>
2nd
Half
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Stores Opened 18 23 28 28 30 30
Stores Closed 4 5 5 5 10 10
__ __ __ __ __ __
Net New Stores 14 18 23 23 20 20
</TABLE>
<PAGE>
STATUS QUO
CRITICAL ELEMENTS OF CURRENT BUSINESS PLAN
- - New Marketing Plan
- Level of Gross Margin Reductions
- Shift in Snow Balance
- Increased Tire Volume per Store
- - Las Vegas Distribution
- SG&A Reductions
- Delivery Costs
- - Warranty Cost Reductions
- New Store Openings
- Cost of Closings
- SG&A Efficiencies
- Additional Borrowing Capacity/
Contingent Liabilities
<PAGE>
STATUS QUO
SUMMARY FINANCIAL STATISTICS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CASE
1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues $122,960 $125,832 $135,854 $150,201 $167,581 $185,075 $202,805
Gross Profit 25,131 26,418 25,150 29,279 34,158 38,188 41,715
Gross Margin 20.4% 21.0% 18.5% 19.5% 20.4% 20.6% 20.6%
SG&A 18,035 18,294 16,604 17,334 18,644 19,981 21,353
As % of Revenues 14.7% 14.5% 12.2% 11.5% 11.1% 10.8% 10.5%
EBITDA 6,058 7,456 8,729 12,276 16,040 18,927 21,281
Net Income $1,881 $2,415 $2,794 $4,768 $7,035 $8,763 $10,197
EPS $0.55 $0.72 $0.82 $1.39 $2.05 $2.54 $2.95
</TABLE>
MODERATE GROWTH CASE
<TABLE>
<CAPTION>
1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues $122,960 $125,832 $133,425 $140,364 $148,531 $156,256 $163,560
Gross Profit 25,131 26,418 24,712 27,405 30,348 32,339 33,744
Gross Margin 20.4% 21.0% 18.5% 19.5% 20.4% 20.7% 20.6%
SG&A 18,035 18,294 16,450 16,783 17,625 18,468 19,313
As % of Revenues 14.7% 14.5% 12.3% 12.0% 11.9% 11.8% 11.8%
EBITDA 6,058 7,456 8,429 10,874 13,075 14,325 14,987
Net Income $1,881 $2,415 $2,769 $4,219 $5,623 $6,431 $6,927
EPS $0.55 $0.72 $0.81 $1.23 $1.63 $1.87 $2.00
</TABLE>
<PAGE>
STATUS QUO
SUMMARY STATISTICS
[TWO BAR GRAPHS HERE]
REVENUES
REVENUE GROWTH
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE 112,960,000 2.6
12/31/93 MODERATE 112,960,000 2.6
12/31/94 AGGRESSIVE 125,832,000 2.3
12/31/94 MODERATE 125,832,000 2.3
12/31/95 AGGRESSIVE 135,854,000 8.0
12/31/95 MODERATE 133,425,000 6.0
12/31/96 AGGRESSIVE 150,201,000 10.6
12/31/96 MODERATE 140,364,000 5.2
12/31/97 AGGRESSIVE 167,581,000 11.6
12/31/97 MODERATE 148,531,000 5.8
12/31/98 AGGRESSIVE 185,075,000 10.4
12/31/98 MODERATE 156,256,000 5.2
12/31/99 AGGRESSIVE 202,805,000 9.6
12/31/99 MODERATE 163,560,000 4.7
GROSS MARGIN
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE 25,131,000 20.4
12/31/93 MODERATE 25,131,000 20.4
12/31/94 AGGRESSIVE 26,418,000 21.0
12/31/94 MODERATE 26,418,000 21.0
12/31/95 AGGRESSIVE 25,150,000 18.5
12/31/95 MODERATE 24,712,000 18.5
12/31/96 AGGRESSIVE 29,279,000 19.5
12/31/96 MODERATE 27,405,000 19.5
12/31/97 AGGRESSIVE 34,158,000 20.4
12/31/97 MODERATE 30,348,000 20.4
12/31/98 AGGRESSIVE 38,188,000 20.6
12/31/98 MODERATE 32,339,000 20.7
12/31/99 AGGRESSIVE 41,715,000 20.6
12/31/99 MODERATE 33,744,000 20.6
<PAGE>
STATUS QUO
SUMMARY STATISTICS
[TWO BAR GRAPHS HERE]
SG&A
AS % OF REVENUES
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE 18,035,000 14.7
12/31/93 MODERATE 18,035,000 14.7
12/31/94 AGGRESSIVE 18,294,000 14.5
12/31/94 MODERATE 18,294,000 14.5
12/31/95 AGGRESSIVE 16,604,000 12.2
12/31/95 MODERATE 16,450,000 12.3
12/31/96 AGGRESSIVE 17,334,000 11.5
12/31/96 MODERATE 16,783,000 12.0
12/31/97 AGGRESSIVE 18,644,000 11.1
12/31/97 MODERATE 17,625,000 11.9
12/31/98 AGGRESSIVE 19,981,000 10.8
12/31/98 MODERATE 18,468,000 11.8
12/31/99 AGGRESSIVE 21,353,000 10.5
12/31/99 MODERATE 19,313,000 11.8
EBIT
EBIT MARGIN
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE 4,500,000 3.7
12/31/93 MODERATE 4,500,000 3.7
12/31/94 AGGRESSIVE 5,650,000 4.5
12/31/94 MODERATE 5,650,000 4.5
12/31/95 AGGRESSIVE 6,278,000 4.6
12/31/95 MODERATE 6,134,000 4.6
12/31/96 AGGRESSIVE 9,727,000 6.5
12/31/96 MODERATE 8,535,000 6.1
12/31/97 AGGRESSIVE 13,493,000 8.1
12/31/97 MODERATE 10,792,000 7.3
12/31/98 AGGRESSIVE 16,333,000 8.8
12/31/98 MODERATE 12,041,000 7.7
12/31/99 AGGRESSIVE 18,636,000 9.2
12/31/99 MODERATE 12,700,000 7.8
<PAGE>
STATUS QUO
SUMMARY STATISTICS
[TWO BAR GRAPHS HERE]
NET INCOME
NET INCOME MARGIN
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE 1,881,000 1.5
12/31/93 MODERATE 1,881,000 1.5
12/31/94 AGGRESSIVE 2,415,000 1.9
12/31/94 MODERATE 2,415,000 1.9
12/31/95 AGGRESSIVE 2,769,000 2.1
12/31/95 MODERATE 2,769,000 2.1
12/31/96 AGGRESSIVE 4,768,000 3.2
12/31/96 MODERATE 4,219,000 3.0
12/31/97 AGGRESSIVE 7,035,000 4.2
12/31/97 MODERATE 5,623,000 3.8
12/31/98 AGGRESSIVE 8,763,000 4.7
12/31/98 MODERATE 6,431,000 4.1
12/31/99 AGGRESSIVE 10,197,000 5.0
12/31/99 MODERATE 6,927,000 4.2
EARNINGS PER SHARE
EPS GROWTH
FYE GROWTH CASE $ %
12/31/93 AGGRESSIVE .55 31.3
12/31/93 MODERATE .55 31.3
12/31/94 AGGRESSIVE .72 30.9
12/31/94 MODERATE .72 30.9
12/31/95 AGGRESSIVE .81 13.9
12/31/95 MODERATE .82 12.5
12/31/96 AGGRESSIVE 1.39 69.5
12/31/96 MODERATE 1.23 51.9
12/31/97 AGGRESSIVE 2.05 47.5
12/31/97 MODERATE 1.63 32.5
12/31/98 AGGRESSIVE 2.54 23.9
12/31/98 MODERATE 1.87 14.7
12/31/99 AGGRESSIVE 2.95 16.1
12/31/99 MODERATE 2.00 7.0
<PAGE>
STATUS QUO
IMPLIED PRICE PER SHARE
<TABLE>
<CAPTION>
1995 1995
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
1995E EPS: $0.82 1995E EPS: $0.81
EQUITY COST PRICE/EARNINGS RATIO EQUITY COST PRICE/EARNINGS RATIO
OF CAPITAL 14x 16x 18x 20x 22x OF CAPITAL 14x 16x 18x 20x 22x
__________ __________________________________________________ __________ ____________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
13% $10.16 $11.61 $13.06 $14.51 $15.96 13% $10.04 $11.47 $12.90 $14.34 $15.77
14% $10.07 $11.51 $12.95 $14.39 $15.82 14% $ 9.95 $11.37 $12.79 $14.21 $15.63
15% $ 9.98 $11.41 $12.83 $14.26 $15.69 15% $ 9.86 $11.27 $12.68 $14.09 $15.50
16% $ 9.90 $11.31 $12.72 $14.14 $15.55 16% $ 9.78 $11.17 $12.57 $13.97 $15.36
17% $ 9.81 $11.21 $12.62 $14.02 $15.42 17% $ 9.69 $11.08 $12.46 $13.85 $15.23
</TABLE>
<TABLE>
<CAPTION>
1996 1996
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
1996E EPS: $1.39 1996E EPS: $1.23
EQUITY COST PRICE/EARNINGS RATIO EQUITY COST PRICE/EARNINGS RATIO
OF CAPITAL 14x 16x 18x 20x 22x OF CAPITAL 14x 16x 18x 20x 22x
__________ __________________________________________________ __________ __________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
13% $15.24 $17.42 $19.59 $21.77 $23.95 13% $13.49 $15.41 $17.34 $19.27 $21.19
14% $14.97 $17.11 $19.25 $21.39 $23.53 14% $13.25 $15.14 $17.04 $18.93 $20.82
15% $14.71 $16.82 $18.92 $21.82 $23.12 15% $13.02 $14.88 $16.74 $18.60 $20.46
16% $14.46 $16.53 $18.59 $20.66 $22.73 16% $12.80 $14.63 $16.45 $18.28 $20.11
17% $14.22 $16.25 $18.28 $20.31 $22.34 17% $12.58 $14.38 $16.17 $17.97 $19.77
</TABLE>
<PAGE>
STATUS QUO
IMPLIED PRICE PER SHARE
<TABLE>
<CAPTION>
1999 1999
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
1999E EPS: $2.95 1999E EPS: $2.00
DISCOUNT PRICE/EARNINGS RATIO DISCOUNT PRICE/EARNINGS RATIO
RATE 14x 16x 18x 20x 22x RATE 14x 16x 18x 20x 22x
__________ __________________________________________________ __________ __________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
13% $22.42 $25.62 $28.82 $32.02 $35.23 13% $15.20 $17.37 $19.54 $21.71 $23.88
14% $21.45 $24.51 $27.58 $30.64 $33.71 14% $14.54 $16.62 $18.70 $20.77 $22.85
15% $20.53 $23.47 $26.40 $29.33 $32.27 15% $13.92 $15.91 $17.90 $19.89 $21.88
16% $19.66 $22.47 $25.28 $28.09 $30.90 16% $13.33 $15.24 $17.14 $19.04 $20.95
17% $18.84 $21.53 $24.22 $26.91 $29.60 17% $12.77 $14.60 $16.42 $18.24 $20.07
</TABLE>
<PAGE>
PART III
SHARE REPURCHASE PROGRAM
<PAGE>
SHARE REPURCHASE PROGRAM
SUMMARY ANALYSIS
Key Variable:
- Cost of funds versus return on equity
Issues to Consider:
- Additional borrowing capacity
- Impact on funds available for store openings
Assumptions:
- $10.0 million used to repurchase shares at $16.00 per share
- Resultant values based on 1995 pro forma earnings per share
<PAGE>
SHARE REPURCHASE PROGRAM
SUMMARY ANALYSIS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
RESULTANT SHARE VALUES FROM $10 MILLION SHARE REPURCHASE PROGRAM RESULTANT SHARE VALUES FROM $10 MILLION SHARE REPURCHASE PROGRAM
POST-REPO MARGINAL COST OF DEBT POST-REPO MARGINAL COST OF DEBT
P/E 9% 10% 11% 12% 13% P/E 9% 10% 11% 12% 13%
___ __ ___ ___ ___ ___ ___ __ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
14x $11.37 $11.08 $10.79 $10.50 $10.21 14x $11.25 $10.96 $10.67 $10.38 $10.09
16 13.00 12.66 12.33 12.00 11.67 16 12.85 12.52 12.19 11.86 11.53
18 14.62 14.25 13.88 13.50 13.13 18 14.46 14.09 13.71 13.34 12.97
20 16.24 15.83 15.42 15.00 14.59 20 16.07 15.65 15.24 14.82 14.41
22 17.87 17.41 16.96 16.50 16.05 22 17.67 17.22 16.76 16.31 15.85
</TABLE>
<PAGE>
PART IV
EXTRAORDINARY DIVIDEND
<PAGE>
EXTRAORDINARY DIVIDEND
SUMMARY ANALYSIS
Key Variable:
- Cost of funds versus return on equity
Issues to Consider:
- Additional borrowing capacity
- Impact on funds available for store openings
- Tax implications
Assumptions:
- $10.0 million used to pay one-time dividend
- Resultant values based on 1995 pro forma earnings per share
<PAGE>
EXTRAORDINARY DIVIDEND
SUMMARY ANALYSIS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
VALUE OF EXTRAORDINARY DIVIDEND VALUE OF EXTRAORDINARY DIVIDEND
BORROWING RATE BORROWING RATE
P/E 9% 10% 11% 12% 13% P/E 9% 10% 11% 12% 13%
___ __ ___ ___ ___ ___ ___ __ ___ ___ ___ ___
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
14x $12.22 $11.98 $11.74 $11.51 $11.27 14x $12.11 $11.88 $11.64 $11.40 $11.17
16 13.54 13.27 13.00 12.73 12.46 16 13.43 13.16 12.89 12.62 12.34
18 14.87 14.57 14.26 13.96 13.65 18 14.74 14.44 14.13 13.83 13.52
20 16.20 15.86 15.52 15.19 14.85 20 16.05 15.72 15.38 15.04 14.70
22 17.53 17.16 16.78 16.41 16.04 22 17.37 16.99 16.62 16.25 15.88
</TABLE>
<PAGE>
PART V
LEVERAGED/MANAGEMENT BUYOUT
<PAGE>
LEVERAGED/MANAGEMENT BUYOUT
SUMMARY ANALYSIS
Key Variable:
- Required return to subordinated debt and equity sponsor
Assumptions:
- Minimum interest coverage of 2.5x EBITDA/Interest
- Subordinated debt has 13% interest rate, 20% all-in return
<PAGE>
LEVERAGED/MANAGEMENT BUYOUT
SUMMARY ANALYSIS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
REQUIRED REQUIRED
EQUITY EQUITY
RATE OF EBITDA EXIT MULTIPLE RATE OF EBITDA EXIT MULTIPLE
RETURN 6x 6.5x 7x 7.5x 8x RETURN 6x 6.5x 7x 7.5x 8x
___________________________________________________________ ______________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
30.0% $12.35 $13.17 $13.98 $14.80 $15.63 30.0% $ 9.60 $10.18 $10.73 $11.32 $11.93
32.5% 11.66 12.40 13.15 13.88 14.60 32.5% 9.15 9.68 10.21 10.75 11.28
35.0% 11.03 11.70 12.38 13.05 13.73 35.0% 8.74 9.23 9.68 10.20 10.65
37.5% 10.48 11.08 11.70 12.35 12.95 37.5% 8.40 8.83 9.27 9.72 10.10
40.0% 9.96 10.53 11.10 11.66 12.22 40.0% 8.07 8.47 8.85 9.26 9.65
</TABLE>
<PAGE>
PAGE VI
MERGER/SALE OF COMPANY TO STRATEGIC BUYER
<PAGE>
MERGER/SALE OF COMPANY TO STRATEGIC BUYER
SUMMARY ANALYSIS
Key Variable:
- - Strategic buyer has lower cost of capital and return requirements than
financial buyers
Assumptions:
- - Minimum interest coverage of 2.5x EBITDA/Interest
- - Financed with bank debt at 9% interest rate/all-in return
- - Strategic buyer can realize synergies of 25% of corporate SG&A
<PAGE>
MERGER/SALE OF COMPANY TO STRATEGIC BUYER
SUMMARY ANALYSIS
<TABLE>
<CAPTION>
EXIT IN 1995 EXIT IN 1995
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
REQUIRED REQUIRED
EQUITY EQUITY
RATE OF EBITDA EXIT MULTIPLE RATE OF EBITDA EXIT MULTIPLE
RETURN 6x 6.5x 7x 7.5x 8x RETURN 6x 6.5x 7x 7.5x 8x
___________________________________________________________ ___________________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
10.0% $12.20 $13.60 $15.00 $16.40 $17.80 10.0% $12.35 $13.72 $15.08 $16.44 $17.80
12.5% 12.13 13.50 14.86 16.24 17.61 12.5% 12.28 13.61 14.94 16.27 17.60
15.0% 12.06 13.40 14.74 16.08 17.42 15.0% 12.21 13.61 14.81 16.11 17.41
17.5% 12.00 13.30 14.61 15.93 17.24 17.5% 12.14 13.41 14.69 15.93 17.23
20.0% 11.93 13.22 14.50 15.78 17.07 20.0% 12.07 13.32 14.57 15.82 17.07
</TABLE>
<TABLE>
<CAPTION>
EXIT IN 1996 EXIT IN 1996
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
REQUIRED REQUIRED
EQUITY EQUITY
RATE OF EBITDA EXIT MULTIPLE RATE OF EBITDA EXIT MULTIPLE
RETURN 6x 6.5x 7x 7.5x 8x RETURN 6x 6.5x 7x 7.5x 8x
___________________________________________________________ ___________________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
10.0% $17.60 $19.28 $21.00 $22.70 $24.40 10.0% $16.45 $18.00 $19.53 $21.07 $22.60
12.5% 17.22 18.85 20.47 22.18 23.73 12.5% 16.13 17.60 19.06 20.55 22.01
15.0% 16.87 18.42 19.98 21.53 23.10 15.0% 15.82 17.23 18.63 20.05 21.45
17.5% 16.53 18.02 19.52 21.00 22.72 17.5% 15.53 16.88 18.23 19.57 20.92
20.0% 16.22 17.64 19.08 20.52 21.95 20.0% 15.27 16.56 17.85 19.14 20.43
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXIT IN 1999 EXIT IN 1999
AGGRESSIVE GROWTH CASE MODERATE GROWTH CASE
REQUIRED REQUIRED
EQUITY EQUITY
RATE OF EBITDA EXIT MULTIPLE RATE OF EBITDA EXIT MULTIPLE
RETURN 6x 6.5x 7x 7.5x 8x RETURN 6x 6.5x 7x 7.5x 8x
___________________________________________________________ _______________________________________________________
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
10.0% $28.65 $30.74 $32.90 $34.96 $37.00 10.0% $22.34 $23.95 $25.48 $27.00 $28.60
12.5% 26.50 28.43 30.30 32.20 34.05 12.5% 20.95 22.35 23.70 25.02 26.50
15.0% 24.73 26.40 28.09 29.78 31.50 15.0% 19.70 20.92 22.20 23.40 24.65
17.5% 23.12 24.64 26.14 27.67 29.20 17.5% 18.60 19.75 20.87 21.95 23.10
20.0% 21.70 23.07 24.43 25.80 27.20 20.0% 17.64 18.65 19.67 20.65 21.65
</TABLE>
<PAGE>
PART VII
SUMMARY RESULTS
<PAGE>
OVERVIEW
SUMMARY RESULTS OF ANALYSES PERFORMED
[BAR GRAPH HERE]
MEASUREMENT PT-
STRATEGIC ALTERNATIVE RANGE SHOWING RANGE SHOWING
AGGRESSIVE MODERATE
GROWTH CASE GROWTH CASE
STATUS QUO (1) 23-30 15-21
STATUS QUO (2) 13-19 13-17
SHARE REPURCHASE 12-16 12-16
EXTRAORDINARY DIVIDEND 13-16 13-16
LBO/MBO 11-14 9-12
MERGER/SALE (1) 25-32 20-25
MERGER/SALE (2) 15-20 15-19
NOTE: ALL SHARE PRICES ARE IN PRESENT VALUE TERMS AS OF DECEMBER 31, 1994.
(1) BASED ON PROJECTED PERFORMANCE THROUGH 1999
(2) BASED ON PROJECTED PERFORMANCE THROUGH 1995 AND 1996
PROJECT SNOW
SUPPLEMENTAL INFORMATION
SEPTEMBER 12, 1994
<PAGE>
TABLE OF CONTENTS
Part I Management Forecasts - Key Assumptions
Part II Status Quo Scenarios
- Aggressive Growth Case
- Moderate Growth Case
Part III Leveraged/Management Buyout Scenarios
- Aggressive Growth Case
- Moderate Growth Case
Part IV Merger/Sale of Company to Strategic Buyer Scenarios
- Aggressive Growth Case
- Moderate Growth Case
Part V Comparable Company Analysis
Part VI Weighted Average Cost of Capital Analysis
<PAGE>
PART I
KEY ASSUMPTIONS
<PAGE>
MANAGEMENT FORECASTS
KEY ASSUMPTIONS
REVENUE FORECAST
Revenues are forecast on a per store basis, based upon historical results, with
adjustments for the implementation of the new marketing plan mid-year 1994.
Total tires sold per store are forecast to increase approximately 10% in the
second half of 1994 as compared to the comparable period in 1993. This
represents a 29.5% increase as compared to the first six months of 1994. No
additional growth in total tires sold per store is assumed for the remainder of
the forecast period.
The mix of Snow sold as a percent of all tires sold is forecast to increase from
66% in the first half of 1994 to 75% for the second half of 1994 and for the
remainder of the forecast period.
Revenue received from the sale of tires is forecast to decrease 8% on a per tire
basis for the forecast period as compared with the first half of 1994 as a
result of the implementation of the new marketing plan. Revenue per Snow tire is
held flat throughout the remainder of the forecast period. No change in revenue
per tire is forecast for non-Snow.
Revenue from the sale of other Snow supplied products (i.e. wheels, shocks,
etc.) is forecast to increase at a 2% annual rate.
New stores are forecast operational for 40% of the year in which they first
opened. Revenue is ramped up over a two-and-one-half year period, increasing
from 80%, to 90% to 100% of a typical store over this time period.
In calculating franchise royalty revenue, service revenue and revenue from the
sale of non-Snow supplied products is forecast to increase at a 2% annual rate.
<PAGE>
COST OF GOODS SOLD
Cost of tires on a per unit basis is forecast based on historical costs for the
first half of 1994. As a result of the price decrease to dealers in Snow
branded tires, the resulting gross profit margin to the Company is forecast to
decrease from 23% to 17% on Snow from the first half of 1994 to the second half
of 1994. As a result of a forecast reduction in warranty costs in the years 1996
to 1998 and no reduction in the price of tires sold, gross profit margins on
Snow are forecast to increase during this period. Margins on non-Snow, and
other products are assumed to remain constant at their historical levels.
Warranty and tire freight costs are forecast independent of the cost of the
tires from the manufacturers. Warranty costs are forecast, on a per tire basis,
to increase 3% in 1995, and decrease 25% percent per year in 1996 and 1997,
decrease an additional 10% in 1998 and remain flat thereafter.
Freight costs are forecast to increase $0.50 per tire when the new Las Vegas
distribution facility opens, estimated to occur on April 1, 1995.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSE
S, G & A expense, excluding depreciation and amortization, is forecast
separately for corporate, regions and retail.
Corporate S, G & A is forecast to remain flat for the second half on 1994 and is
increased 5% per year for the remainder of the forecast period.
S, G & A expense for the regions is forecast to increase proportionally with the
increase in non-retail sales.
Retail S, G & A expense is forecast as $360,000 per Company-owned store.
<PAGE>
SPEC STORE DEVELOPMENT PROGRAM
The Aggressive Growth Case forecast assumes the Company is successful in
implementing its spec store development program as currently envisioned.
Important assumptions in this analysis include:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
__________________________________
12/31/94 1995 1996 1997 1998 1999
_________ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Spec stores started 8 23 27 31 31 31
Spec stores opened 0 16 30 31 31 31
</TABLE>
** The Moderate Growth Case forecast assumes half of the spec store starts
beginning in 1995.
Spec stores are built at a total cost of $650,000. 90% of spec stores are
assumed sold to new franchisees for $650,000. 50% of these franchisees are
given a $30,000 bridge loan, repaid over five years.
The remaining 10% are retained by the Company and leased to franchisees at a
resulting return on capital invested of 10%. No sale of retained real estate is
assumed.
Additionally, the Company continues to build six stores per year through its
development joint venture program at a cost to the Company of $60,000 per joint
venture. These stores are leased to new or existing franchisees and sold to
the franchisee in year four at cost.
<PAGE>
NEW STORE OPENINGS
The Aggressive Growth Case forecast assumes new stores are opened and closed
primarily in conformance with the Company's latest business development plan.
The forecast is summarized below:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
_____________________________
12/31/94 1995 1996 1997 1998 1999
_________ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
STORES AT BEGINNING OF PERIOD
Franchise Stores 361 377 417 467 517 567
Company Stores 5 3 3 3 3 3
___ ___ ___ ___ ___ ___
Total 366 380 420 470 520 570
Franchise Stores Opened 18 45 55 55 60 60
STORES CLOSED
Franchise Stores 2 5 5 5 10 10
Company Stores 2 0 0 0 0 0
___ ___ ___ ___ ___ ___
Total 4 5 5 5 10 10
STORES AT END OF PERIOD
Franchise Stores 377 417 467 517 567 617
Company Stores 3 3 3 3 3 3
___ ___ ___ ___ ___ ___
Total 380 420 470 520 570 620
</TABLE>
** The Moderate Growth Case forecast assumes half of the new store openings
beginning in 1995.
All new stores are added through existing dealer expansions or new franchisees.
No new stores are added through conversions, master franchises, operational
joint ventures or additions to Company stores. No costs are imputed with the
closing of a store other than the loss of the associated revenue.
<PAGE>
OTHER CAPITAL EXPENDITURES
The Company's primary capital requirements are for the construction of the Las
Vegas distribution facility in 1995 and for the implementation of the spec
program and the Management Information System. Cash proceeds are assumed to be
received in 1995 for the sale of the Vacaville and Denver distribution centers.
LONG-TERM DEBT
Retained real estate is assumed 80% financed through a financing similar to that
which the Company currently has in place with AT&T. Other cash requirements are
assumed financed through the BBC line-of-credit.
<PAGE>
PART II
STATUS QUO SCENARIOS
<PAGE>
<PAGE>
AGGRESSIVE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
SUMMARY STATISTICS
HISTORICAL PROJECTED
_________ _______ ___________________________________________________________________
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
________________________ _________ ________ ________ ________ ________ ________ ________ ________
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $135,854 $150,201 $167,581 $185,075 $202,805
EBITDA 7,624 6,058 7,456 8,729 12,276 16,040 18,927 21,281
EBIT 5,936 4,500 5,650 6,278 9,727 13,493 16,333 18,636
Total Interest 1,170 1,219 1,686 1,628 1,587 1,460 1,406 1,422
Net Interest 1,170 1,219 1,468 1,452 1,491 1,343 1,182 1,007
Net Income $2,783 $1,881 $2,415 $2,794 $4,768 $7,035 $8,763 $10,197
Earnings Per Share $0.80 $0.55 $0.72 $0.82 $1.39 $2.05 $2.54 $2.95
GROWTH/MARGIN ANALYSIS
Net Sales Growth 5.2% 2.6% 2.3% 8.0% 10.6% 11.6% 10.4% 9.6%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.6% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 6.4% 8.2% 9.6% 10.2% 10.5%
EBIT Margin 5.0% 3.7 4.5% 4.6% 6.5% 8.1% 8.8% 9.2%
Net Income Margin 2.3% 1.5% 1.9% 2.1% 3.2% 4.2% 4.7% 5.0%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 5.4x 7.7x 11.0x 13.5x 15.0x
EBITDA/Net Interest 6.5x 5.0x 5.1x 6.0x 8.2x 11.9x 16.0x 21.1x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -1.7x 6.6x 10.4x 12.8x 14.3x
EBIT/Total Interest 5.1x 3.7x 3.4x 3.9x 6.1x 9.2x 11.6x 13.1x
EBIT/ Net Interest 5.1x 3.7x 3.8x 4.3x 6.5x 10.0x 13.8x 18.5x
Total Debt/EBITDA 1.4x 2.3x 2.6x 2.3x 1.4x 1.0x 0.8x 0.7x
Debt/Total Capitalization 30.3% 43.2% 36.0% 35.0% 29.3% 24.2% 20.7% 18.4%
Debt/Equity 0.4x 0.8x 0.6x 0.5x 0.4x 0.3x 0.3x 0.2x
Store Count (end of period)
Franchise Stores 344 362 377 417 467 517 567 617
Company Stores 10 8 3 3 3 3 3 3
------- ------- ------- ------- ------- ------- ------- -------
Total Stores 354 370 380 420 470 520 570 620
</TABLE>
<PAGE>
AGGRESSIVE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Acquisition Adjustments
OPENING BALANCE
SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
________ ______ ________ _______ _________ ________ ____ ________ _________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash/ Investments $4,200 $4,200 $0 $0 $0 $0 $0 $4,200
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
________ ______ ________ _______ _________ ________ ____ ________ _________
Total Current Assets 31,417 31,417 0 0 0 0 0 0 31,417
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
________ ______ ________ _______ _________ ________ ____ ________ _______
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 0 241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 0 0
________ ______ ________ _______ _________ ________ ____ ________ _______
Total Assets $64,234 $64,234 $0 $0 $0 $0 $0 $0 $64,234
________ ______ ________ _______ _________ ________ ____ ________ _______
________ ______ ________ _______ _________ ________ ____ ________ _______
Current Liabilities
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
________ ______ ________ _______ _________ ________ ____ ________ _______
Total Current
Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt
(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 0 0
Sub Debt 0 0 0 0
________ ______ ________ _______ _________ ________ ____ ________ ________
Total Debt 19,399 19,399 0 0 0 0 0 0 19,399
New Common Stock 0 0 0 0
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 0 0 34,952
________ ______ ________ _______ _________ ________ ____ ________ ________
Total Equity 34,499 34,499 34,499
________ ______ ________ _______ _________ ________ ____ ________ ________
Total Liab. & Equity $64,234 $64,234 $64,234
________ ______ ________ _______ _________ ________ ____ ________ ________
________ ______ ________ _______ _________ ________ ____ ________ ________
</TABLE>
<PAGE>
AGGRESSIVE CASE SNOW PROJECTED MODEL
<TABLE>
<CAPTION>
Historical Projected
INCOME STATEMENT Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------------- ------------------------ --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $53,067 $64,127 $117,195 $127,920 $141,503 $157,949 $174,505 $191,274
Incremental Retail Sales 1,816 3,238 1,085 833 1,918 934 934 934 934 934
Franchise Fee Income 5,856 6,116 3,085 3,207 6,292 6,622 7,378 8,297 9,234 10,195
O Advertising 470 381 242 186 428 379 386 402 402 402
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 57,480 68,353 125,832 135,854 150,201 167,581 185,075 202,805
Cost Of Goods Sold(1) 94,720 97,829 44,424 54,990 99,414 110,704 120,922 133,423 146,887 161,089
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 13,056 13,363 26,418 25,150 29,279 34,158 38,188 41,715
Selling Gen. & Admin 17,455 18,035 9,388 8,906 18,294 16,604 17,334 18,664 19,981 21,353
Depreciation 1,120 1,168 605 794 1,399 2,044 2,163 2,211 2,260 2,310
Amort. of Finance Costs 0 0 0 0 0 0 0 0 0 0
Goodwill Amortization 0 0 0 0 0 0 0 0 0 0
Other Amortization 568 390 208 199 407 407 386 336 335 335
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(1) 19,143 19,593 10,201 9,899 20,100 19,055 19,883 21,191 22,576 23,998
Operating Income 5,936 5,538 2,855 3,464 6,319 6,095 9,396 12,967 15,612 17,717
Lease (Income)-10% 0 0 0 (33) (33) (183) (331) (526) (721) (919)
Other Expenses/(Income) 0 1,038 702 0 702 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EBIT 5,936 4,500 2,153 3,497 5,650 6,278 9,727 13,493 16,333 18,636
Projected Costs Savings
Interest Expense
Existing Debt 1,170 1,219 667 1,019 1,686 1,628 1,587 1,460 1,406 1,422
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,129 667 1,019 1,686 1,628 1,587 1,460 1,406 1,422
Interest Income 0 0 0 217 217 177 96 116 224 415
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,129 667 801 1,468 1,452 1,491 1,343 1,182 1,007
Earnings Before Taxes 4,766 3,281 1,486 2,695 4,181 4,826 8,236 12,150 15,151 17,630
Income Taxes 1,983 1,400 631 1,135 1,766 2,032 3,467 5,115 6,387 7,433
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income To Common $2,783 $1,881 $855 $1,561 $2,415 $2,794 $4,768 $7,035 $8,763 $10,197
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings Per Share
Actual $0.80 $0.55 $0.26 $0.46 $0.72 $0.82 $1.39 $2.05 $2.54 $2.95
Excl. One Time Items $0.73 $0.38 $0.84
Weighted Average Shares 3,497 3,410 3,333 3,416 3,374 3,424 3,432 3,440 3,448 3,456
_____________________________
</TABLE>
(1) All freight expense is in COGS
<PAGE>
AGGRESSIVE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Historical Projected
BALANCE SHEET Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
---------------------- ----------------------- -----------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $4,200 $0 $0 $2,574 $8,406 $16,505
Receivables 8,835 7,722 9,870 8,407 8,407 9,077 10,036 11,197 12,366 13,550
Inventory 15,348 11,748 21,433 15,261 15,261 15,815 16,123 17,790 19,585 21,479
Deferred Income
Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 31,417 28,830 30,485 36,277 45,463 57,029
Real Estate Retained 0 0 1,324 1,324 2,334 4,284 6,234 8,184 10,199
Real Estate CIP 0 0 1,750 3,085 3,085 5,581 5,551 5,551 5,551 5,551
Other P & E, net 12,166 13,153 13,477 14,003 14,003 18,895 18,635 17,308 16,003 14,649
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 26,900 28,470 29,093 29,738 30,398
Investment/Other
Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 210 573 878 1,123 1,317
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 241 215 189 163 137 111
Goodwill 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $64,234 $70,370 $73,954 $80,670 $90,444 $102,502
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,085 3,613 7,792 3,679 3,679 4,613 5,038 5,559 6,120 6,712
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,346 3,700 4,129 4,558 4,995
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4.454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,413 13,793 15,342 16,933 18,561
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,571 4,069 5,535 6,966 8,410
LOC-BBC 950 0 6,208 734 734 4,842 2,065 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Debt 10,714 13,686 25,077 19,399 19,399 20,212 17,647 15,779 15,199 15,432
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities 23,489 25,119 41,779 29,736 29,736 32,884 31,440 31,121 32,132 33,993
New Common Stock 0 0 0 0 0 0 0 0 0 0
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 34,952 37,746 42,514 49,549 58,312 68,509
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 34,499 37,486 42,514 49,549 58,312 68,509
Total Liab.&
Equity $57,679 $56,607 $74,741 $64,234 $64,234 $70,370 $73,954 $80,670 $90,444 $102,502
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
<PAGE>
AGGRESSIVE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Projected
CASH FLOW STATEMENT ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Cash Flow From Operations
Net income $1,561 $2,794 $4,768 $7,035 $8,763 $10,197
Depreciation 794 2,044 2,163 2,211 2,260 2,310
Amortization 199 407 386 336 335 335
Increase Deferred Income/Taxes (19) (121) 0 0 0 0
________ ______ ______ _____ ______ _______
Total Cash Flow From Operations 2,535 5,124 7,318 9,581 11,358 12,842
Changes in Working Capital
Accounts Receivable 1,463 (670) (959) (1,161) (1,169) (1,185)
Inventories 6,172 (554) (308) (1,667) (1,795) (1,894)
Deferred Income Taxes (476) (389) (389) (389) (389) (389)
Other Current Assets 976 0 0 0 0 0
Accounts Payable (4,113) 933 426 521 561 592
Accrued Expenses (2,558) 1,117 354 428 430 437
Warranty Reserve 300 600 600 600 600 600
________ ______ ______ _____ ______ _______
Total Changes In Working Capital 1,764 1,037 (276) (1,668) (1,762) (1,839)
Cash (Used For) Generated By Investments
Capital Expenditures (1,320) (11,519) (1,813) (884) (955) (955)
Proceeds From Sale Of Properties 0 4,493 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV (300) (360) (360) (360) (60) 0
Investment In Conversions 0 0 0 0 0 0
Real Estate Retained (1,324) (1,010) (1,950) (1,950) (1,950) (2,015)
Real Estate CIP (1,335) (2,496) 30 (0) (0) (0)
Bridge Loan 0 (210) (363) (305) (244) (194)
________ ______ ______ _____ ______ _______
Total Investments (4,278) (11,102) (4,456) (3,499) (3,209) (3,164)
Changes in Other Assets
Investments/Other Assets 800 (140) (140) (140) (140) (140)
Notes Receivable 3,622 200 200 200 200 200
Distribution Rights 170 249 279 278 276 276
Note Pay Fees Expenses (241) 26 26 26 26 26
Less: Amortization (199) (407) (386) (336) (335) (335)
________ ______ ______ _____ ______ _______
Total Other 4,152 (72) (21) 28 27 27
Net From Operations 4,172 (5,013) 2,564 4,442 6,413 7,866
Cash Flow From Financing Activities
Existing Debt (5,678) 813 (2,564) (1,868) (580) 233
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
Net cash used in financing activities (5,678) 813 (2,564) (1,868) (580) 233
Net Increase (Decrease) in Cash (1,506) (4,200) 0 2,574 5,833 8,099
Cash, Beginning of Period 5,706 4,200 0 0 2,574 8,406
Cash Generated (Used) (1,506) (4,200) 0 2,574 5,833 8,099
________ ______ ______ _____ ______ _______
Cash, End of Period $4,200 $0 $0 $2,574 $8,406 $16,505
Min Cash Balance 1994 $4,200
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AGGRESSIVE CASE SNOW PROJECTION MODEL
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Beginning Debt Balance
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,571 4,069 5,535 6,966
LOC-BBC 6,208 734 4,842 2,065 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Beginning Debt Balance 25,077 19,399 20,212 17,647 15,779 15,199
Debt (Repayment Borrowings)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 776 1,498 1,466 1,431 1,444
LOC-BBC (5,474) 4,108 (2,777) (2,065) 0 0
______ ______ ______ ______ ______ ______
Total Existing Debt Borrowing (Repayment) (5,678) 813 (2,564) (1,868) (580) 233
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Borrowing (Repayment) (5,678) 813 (2,564) (1,868) (580) 233
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,571 4,069 5,535 6,966 8,410
LOC-BBC 734 4,842 2,065 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Ending Debt Balance 19,399 20,212 17,647 15,779 15,199 15,432
</TABLE>
<PAGE>
AGGRESSIVE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
--------- -------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt Rate
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 218 332 480 625 769
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 230 285 85 0 0
______ ______ ______ ______ ______ ______
Total Existing Debt Interest Expense 1,019 1,628 1,587 1,460 1,406 1,422
Acquisition Financing
Senior Debt 0.0% 0 0 0 0 0 0
Sub Debt 0.0% 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Interest Expense $1,019 $1,628 $1,587 $1,460 $1,406 $1,422
Income on Cash 3.00% 74 63 0 39 165 374
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
________ ______ ______ _____ ______ _______
$217 $177 $96 $116 $224 $415
</TABLE>
<PAGE>
MODERATE CASE PROJECTION MODEL
<TABLE>
<CAPTION>
SUMMARY STATISTICS
HISTORICAL PROJECTED
________________ ________________________________________________________________
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $133,425 $140,364 $148,531 $156,256 $163,560
EBITDA 7,624 6,058 7,456 8,429 10,874 13,075 14,325 14,987
EBIT 5,936 4,500 5,650 6,134 8,535 10,792 12,041 12,700
Total Interest 1,170 1,219 1,686 1,528 1,351 1,240 1,200 1,144
Net Interest 1,170 1,219 1,468 1,351 1,248 1,080 922 724
Net Income $2,783 $1,881 $2,415 $2,769 $4,219 $5,623 $6,431 $6,927
Earnings Per Share $0.80 $0.55 $0.72 $0.81 $1.23 $1.63 $1.87 $2.00
Growth Margin Analysis
Net Sales Growth 5.2% 2.6% 2.3% 6.0% 5.2% 5.8% 5.2% 4.7%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.7% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 6.3% 7.7% 8.8% 9.2% 9.2%
EBIT Margin 5.0% 3.7 4.5% 4.6% 6.1% 7.3% 7.7% 7.8%
Net Income Margin 2.3% 1.5% 1.9% 2.1% 3.0% 3.8% 4.1% 4.2%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 5.5x 8.0x 10.5x 11.9x 13.1x
EBITDA/Net Interest 6.5x 5.0x 5.1x 6.2x 8.7x 12.1x 15.5x 20.7x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -2.0x 6.7x 9.8x 11.1x 12.3x
EBIT/Total Interest 5.1x 3.7x 3.4x 4.0x 6.3x 8.7x 10.0x 11.1x
EBIT/ Net Interest 5.1x 3.7x 3.8x 4.5x 6.8x 10.0x 13.1x 17.5x
Total Debt/EBITDA 1.4x 2.3x 2.6x 2.1x 1.3x 1.1x 0.9x 0.8x
Debt/Total Capitalization 30.3% 43.2% 36.0% 32.2% 25.8% 22.8% 19.1% 16.8%
Debt/Equity 0.4x 0.8x 0.6x 0.5x 0.3x 0.3x 0.2x 0.2x
STORE COUNT (END OF PERIOD)
Franchise Stores 344 362 377 395 418 441 461 481
Company Stores 10 8 3 3 3 3 3 3
___ ___ ___ ___ ___ ___ ___ ___
Total Stores 354 370 380 398 421 444 464 484
</TABLE>
<PAGE>
AGGRESSIVE CASE - LEVERAGED BUYOUT SCENARIO
SUMMARY STATISTICS
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
________________ ________________________________________________________________
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $135,854 $150,201 $167,581 $185,075 $202,805
EBITDA 7,624 6,058 7,456 8,729 12,276 16,040 18,927 21,281
EBIT 5,936 4,500 5,650 5,956 9,405 13,171 16,011 18,315
Total Interest 1,170 1,219 1,686 3,488 3,708 3,570 3,262 3,075
Net Interest 1,170 1,219 1,468 3,312 3,613 3,492 3,203 2,930
Net Income $2,783 $1,881 $2,415 $4,480 $3,302 $5,553 $7,357 $8,847
Earnings Per Share $0.80 $0.55 $0.72 $0.43 $0.96 $1.61 $2.13 $2.56
GROWTH MARGIN ANALYSIS
Net Sales Growth 5.2% 2.6% 2.3% 8.0% 10.6% 11.6% 10.4% 9.6%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.6% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 6.4% 8.2% 9.6% 10.2% 10.5%
EBIT Margin 5.0% 3.7 4.5% 4.4% 6.3% 7.9% 8.7% 9.0%
Net Income Margin 2.3% 1.5% 1.9% 1.1% 2.2% 3.3% 4.0% 4.4%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 2.5x 3.3x 4.5x 5.8x 6.9x
EBITDA/Net Interest 6.5x 5.0x 5.1x 2.6x 3.4x 4.6x 5.9x 7.3x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -0.8x 2.8x 4.2x 5.5x 6.6x
EBIT/Total Interest 5.1x 3.7x 3.4x 1.7x 2.5x 3.7x 4.9x 6.0x
EBIT/ Net Interest 5.1x 3.7x 3.8x 1.8x 2.6x 3.8x 5.0x 6.3x
Total Debt/EBITDA 1.4x 2.3x 2.6x 4.4x 3.0x 2.1x 1.5x 1.3x
Debt/Total Capitalization 30.3% 43.2% 36.0% 59.2% 55.2% 48.6% 39.7% 35.3%
Debt/Equity 0.4x 0.8x 0.6x 1.5x 1.2x 0.9x 0.7x 0.5x
STORE COUNT (END OF PERIOD)
Franchise Stores 344 362 377 417 467 517 567 617
Company Stores 10 8 3 3 3 3 3 3
___ ___ ___ ___ ___ ___ ___ ___
Total Stores 354 370 380 420 470 520 570 620
</TABLE>
<PAGE>
MODERATE CASE - SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
ACQUISITION ADJUSTMENTS
OPENING BALANCE SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
-------- ------- ------- -------- --------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Cash/ Investments $4,200 $4,200 $0 $0 $0 $0 $0 $4,200
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Current Assets 31,417 31,417 0 0 0 0 0 0 31,417
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 0 241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 0 0
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Assets $64,234 $64,234 $0 $0 $0 $0 $0 $0 $64,234
-------- ------- ------- -------- --------- -------- ------- -------- ---------
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Current Liabilities
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Current Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 0 0
Sub Debt 0 0 0 0
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Debt 19,399 19,399 0 0 0 0 0 0 19,399
New Common Stock 0 0 0 0
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 0 0 34,952
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Equity 34,499 34,449 34,499
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Liab. & Equity $64,234 $64,234 $64,234
-------- ------- ------- -------- --------- -------- ------- -------- ---------
-------- ------- ------- -------- --------- -------- ------- -------- ---------
</TABLE>
<PAGE>
MODERATE CASE SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Historical
BALANCE SHEET Year Ended Dec. 31, Projected
------------------------- At Pro Forma
(in thousands) 1992 1993 6/30/94 31-Dec-94 31-Dec-94 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $4,200 $0 $537 $4,941 $9,611 $15,639
Receivables 8,835 7,722 9,870 8,407 8,407 8,915 9,378 9,924 10,440 10,928
Inventory 15,348 11,748 21,433 15,261 15,261 15,530 15,061 15,758 16,522 17,309
Deferred Income Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 31,417 28,383 29,304 35,339 41,679 49,372
Real Estate Retained 0 0 1,324 1,324 2,009 3,024 4,032 5,039 6,079
Real Estate CIP 0 0 1,750 3,085 3,085 3,706 3,675 3,664 3,664 3,664
Other P & E, net 12,166 13,153 13,477 14,003 14,003 19,140 19,001 17,937 16,943 15,946
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 24,855 25,699 25,633 25,646 25,689
Investment/Other Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 142 325 477 598 695
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 241 215 189 163 137 111
Goodwill 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $64,234 $67,812 $69,754 $75,871 $82,043 $89,513
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,058 3,613 7,792 3,679 3,679 4,530 4,707 4,924 5,163 5,409
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,286 3,458 3,659 3,849 4,028
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4,454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,270 13,219 14,238 15,266 16,291
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 950 0 6,208 734 734 2,706 0 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Debt 10,714 13,686 25,077 19,399 19,399 17,821 14,595 14,070 12,783 12,300
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities 23,489 25,119 41,779 29,736 29,736 30,351 27,814 28,308 28,048 28,592
New Common Stock 0 0 0 0 0 0 0 0 0 0
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 34,952 37,721 41,940 47,563 53,994 60,921
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 34,499 37,461 41,940 47,563 53,994 60,921
Total Liab.& Equity $57,679 $56,607 $74,741 $64,234 $64,234 $67,812 $69,754 $75,871 $82,043 $89,513
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
<PAGE>
MODERATE CASE - SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended -----------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Beginning Debt Balance
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,315 3,082 3,826 4,550
LOC-BBC 6,208 734 2,706 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
-------- ------- ------- ------- ------- -------
Total Beginning Debt Balance 25,077 19,399 17,821 14,595 14,070 12,783
Debt (Repayment Borrowings)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 520 767 744 723 729
LOC-BBC (5,474) 1,973 (2,706) 0 0 0
-------- ------- ------- ------- ------- -------
Total Existing Debt Borrowing (Repayment) (5,678) (1,578) (3,226) (525) (1,288) (482)
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
-------- ------- ------- ------- ------- -------
Total Borrowing (Repayment) (5,678) (1,578) (3,226) (525) (1,288) (482)
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 734 2,706 0 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
-------- ------- ------- ------- ------- -------
Total Ending Debt Balance 19,399 17,821 14,595 14,070 12,783 12,300
</TABLE>
<PAGE>
MODERATE CASE - SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
--------- -------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt Rate
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 206 270 345 419 491
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 142 112 0 0 0
______ ______ ______ ______ ______ ______
Total Existing Debt Interest Expense 1,019 1,528 1,351 1,240 1,200 1,144
Acquisition Financing
Senior Debt 0.0% 0 0 0 0 0 0
Sub Debt 0.0% 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Interest Expense $1,019 $1,528 $1,351 $1,240 $1,200 $1,144
Income on Cash 3.00% 74 63 8 82 218 379
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
________ ______ ______ _____ ______ _______
$217 $177 $104 $160 $278 $420
</TABLE>
<PAGE>
PART III
LEVERAGED/MANAGEMENT BUYOUT SCENARIOS
<PAGE>
AGGRESSIVE CASE - LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
GENERAL ASSUMPTIONS TRANSACTION PURCHASE TERMS
____________________________________________________ _________________________________________________
<S> <C> <S> <C>
LBO/Sale of Company
____________________________________
Common Shares Outstanding 3,266 Equity Value 40,926
Stock Options 244 Total Debt Assumed 19,399
Total Shares 3,510 Less: Excess Cash (4,200)
________ ________
Avg. Exercise Price of Stock Options $6.35 Total Value (TV) 56,125
Cash Paid per Share $11.66
Market Price as of $16.00 Estimated Transaction Costs 2,000
Premium (Discount) Over Market Price -27.13% Less: Assumed Debt (19,399)
Less: Cash Proc.-Stock Options (1,552)
Total Debt Outstanding Before Purchase 19,399
Existing Debt Refinanced 0 Financing Needed $37,174
Debt Assumed 19,399 Rate % Equity
____ ________
<C> <C> <C>
Bank Debt 0 9.0% ---
EBITDA Exit Multiple 7.0x Subordinated Debt 12,660 13.0% 6.2%
Goodwill Amortization Period 40 yrs. Equity 1 - Investor 24,514 --- 93.9%
Transaction Cost Amortization Period 10 yrs Equity 2 - Management 0 --- 0.0%
______ ________
37,174 100.0%
</TABLE>
<TABLE>
<CAPTION>
PURCHASE PRICE MULTIPLES RATES OF RETURN SENSITIVITY
___________________________________________________ ___________________________________________________
1993 1994 1995 % Equity EBITDA Exit Multiple
____ ____ ____ ____________________________________
<S> <C> <C> <C>
TV/Sales 0.5x 0.4x 0.4x Allocation 6.0x 7.0x 8.0x
________________________________________________
<S> <C> <C> <C> <C>
TV/EBITDA 9.3x 7.5x 6.4x Equity-Inves. 93.9% 32.5% 37.4% 41.7%
TV/EBIT 12.5x 9.9x 9.4x Equity-Mngt. NMF NMF NMF NMF
Price/Earnings 16.1x 13.9x 27.0x Sub Debt 6.2% 20.0% 21.2% 22.3%
</TABLE>
<TABLE>
<CAPTION>
COVERAGES PRO FORMA
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
EBITDA/Total Interest 2.2x 2.502x 3.3x 4.5x 5.8x 6.9x
EBIT/Total Interest 1.7x 1.7x 2.5x 3.7x 4.9x 6.0x
Total Debt/EBITDA 4.3x 4.4x 3.0x 2.1x 1.5x 1.3x
Debt/Total Cap 56.7% 59.2% 55.2% 48.6% 39.7% 35.3%
Net Debt $32,059 $38,064 $36,644 $33,362 $28,034 $21,196
Cumulative Debt Repayment --- (6,005) 1,420 3,282 5,328 6,838
FINANCIAL
EPS $0.72 $0.43 $0.96 $1.61 $2.13 $2.56
</TABLE>
<PAGE>
AGGRESSIVE CASE LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Acquisition Adjustments
OPENING BALANCE SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
-------- -------- -------- -------- --------- -------- ------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/ Investments $4,200 $4,200 $24,514 $12,660 $0 ($39,374) ($2,000) $0
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
-------- -------- -------- -------- --------- -------- ------- --------- --------
Total Current Assets 31,417 31,417 24,514 12,660 0 (39,374) (2,000) 0 27,217
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 2,000 2,241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 4,875 4,875
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total Assets $64,234 $64,234 $24,514 $12,660 $0 ($39,374) $0 $4,875 $66,909
-------- -------- -------- -------- --------- -------- ------- --------- ---------
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Current Liabilities
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total Current Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 0 0
Sub Debt 0 0 $12,660 12,660
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total Debt 19,399 19,399 0 $12,660 0 0 0 0 32,059
New Common Stock 0 0 24,514 24,514
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 ($39,374) 4,875 453
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total Equity 34,499 34,449 24,514
-------- -------- -------- -------- --------- -------- ------- --------- ---------
Total Liab. & Equity $64,234 $64,234 $66,909
-------- -------- -------- -------- --------- -------- ------- --------- ---------
-------- -------- -------- -------- --------- -------- ------- --------- ---------
</TABLE>
<PAGE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical Projected
BALANCE SHEET Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------ ----------------------- ----------------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $53,067 $64,127 $117,195 $127,920 $141,503 $157,949 $174,505 $191,274
Incremental Retail Sales 1,816 3,238 1,085 833 1,918 934 934 934 934 934
Franchise Fee Income 5,856 6,116 3,085 3,207 6,292 6,622 7,378 8,297 9,234 10,195
O Advertising 470 381 242 186 428 379 386 402 402 402
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 57,480 68,353 125,832 135,854 150,201 167,581 185,075 202,805
Cost Of Goods Sold(1) 94,720 97,829 44,424 54,990 99,414 110,704 120,922 133,423 146,887 161,089
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 13,056 13,363 26,418 25,150 29,279 34,158 38,188 41,715
Selling Gen. & Admin 17,455 18,035 9,388 8,906 18,294 16,604 17,334 18,664 19,981 21,353
Depreciation 1,120 1,168 605 794 1,399 2,044 2,163 2,211 2,260 2,310
Amort. of Finance Costs 0 0 0 0 0 200 200 200 200 200
Goodwill Amortization 0 0 0 0 0 122 122 122 122 122
Other Amortization 568 390 208 199 407 407 386 336 335 335
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(1) 19,143 19,593 10,201 9,899 20,100 19,377 20,205 21,512 22,898 24,320
Operating Income 5,936 5,538 2,855 3,464 6,319 5,773 9,074 12,645 15,290 17,395
Lease (Income)-10% 0 0 0 (33) (33) (183) (331) (526) (721) (919)
Other Expenses/(Income) 0 1,038 702 0 702 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EBIT 5,936 4,500 2,153 3,497 5,650 5,956 9,405 13,171 16,011 18,315
Projected Costs Savings
Interest Expense
Existing Debt 1,170 1,219 667 1,019 1,686 1,843 2,062 1,924 1,617 1,429
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 1,646 1,646 1,646 1,646 1,646
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,219 667 1,019 1,686 3,488 3,708 3,570 3,262 3,075
Interest Income 0 0 0 217 217 177 96 786 60 145
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,219 667 801 1,468 3,312 3,613 3,492 3,203 2,930
Earnings Before Taxes 4,766 3,281 1,486 2,695 4,181 2,644 5,792 9,679 12,808 15,385
Income Taxes 1,983 1,400 631 1,135 1,766 1,164 2,490 4,126 5,451 6,538
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income To Common $2,783 $1,881 $855 $1,561 $2,415 $1,480 $3,302 $5,553 $7,357 $8,847
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings Per Share
Actual $0.80 $0.55 $0.26 $0.46 $0.72 $0.43 $0.96 $1.61 $2.13 $2.56
Excl. One Time Items $0.73 $0.38 $0.84
Weighted Average Shares 3,497 3,410 3,333 3,416 3,374 3,424 3,432 3,440 3,448 3,456
- --------------------------
(1) All freight expense is in COGS
</TABLE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical
BALANCE SHEET Year Ended Dec. 31, Projected
------------------------- At Pro Forma
(in thousands) 1992 1993 6/30/94 31-Dec-94 31-Dec-94 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $0 ($0) $0 $0 $0 $6,896
Receivables 8,835 7,722 9,870 8,407 8,407 9,077 10,036 11,197 12,366 13,550
Inventory 15,348 11,748 21,433 15,261 15,261 15,815 16,123 17,790 19,585 21,479
Deferred Income Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 27,217 28,830 30,485 33,703 37,056 47,420
Real Estate Retained 0 0 1,324 1,324 2,334 4,284 6,234 8,184 10,199
Real Estate CIP 0 0 1,750 3,085 3,085 5,581 5,551 5,551 5,551 5,551
Other P & E, net 12,166 13,153 13,477 14,003 14,003 18,895 18,635 17,308 16,003 14,649
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 26,900 28,470 29,093 29,738 30,398
Investment/Other Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 210 573 878 1,123 1,317
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 2,241 2,015 1,789 1,563 1,337 1,111
Goodwill 0 0 0 0 4,875 4,753 4,631 4,510 4,388 4,266
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $66,909 $76,924 $80,185 $84,006 $87,625 $98,158
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,085 3,613 7,792 3,679 3,679 4,613 5,038 5,559 6,120 6,712
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,346 3,700 4,129 4,558 4,995
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4,454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,413 13,793 15,342 16,933 18,561
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,571 4,069 5,535 6,966 8,410
LOC-BBC 950 0 6,208 734 734 10,034 8,402 4,923 175 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 12,660 12,660 12,660 12,660 12,660 12,660
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Debt 10,714 13,686 25,077 19,399 32,059 38,064 36,644 33,362 28,034 28,092
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities 23,489 25,119 41,779 29,736 42,396 50,737 50,437 48,704 44,967 46,653
New Common Stock 0 0 0 0 24,514 24,514 24,514 24,514 24,514 24,514
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 453 1,933 5,235 10,788 18,145 26,992
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 24,514 26,186 29,749 35,302 42,685 51,505
Total Liab.& Equity $57,679 $56,607 $74,741 $64,234 $66,909 $76,924 $80,185 $84,006 $87,625 $98,158
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
<PAGE>
AGGRESSIVE CASE - SNOW PROJECTION MODEL
<TABLE>
<CAPTION>
Projected
CASH FLOW STATEMENT ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
CASH FLOW FROM OPERATIONS
Net income $1,561 $1,480 $3,302 $5,553 $7,357 $8,847
Depreciation 794 2,044 2,163 2,211 2,260 2,310
Amortization 199 729 708 658 657 657
Increase Deferred Income/Taxes (19) (121) 0 0 0 0
------- ------- ------ ------ ------ ------
Total Cash Flow From Operations 2,535 4,132 6,174 8,421 10,273 11,814
CHANGES IN WORKING CAPITAL
Accounts Receivable 1,463 (670) (959) (1,161) (1,169) (1,185)
Inventories 6,172 (554) (308) (1,667) (1,795) (1,894)
Deferred Income Taxes (476) (389) (389) (389) (389) (389)
Other Current Assets 976 0 0 0 0 0
Accounts Payable (4,113) 933 426 521 561 592
Accrued Expenses (2,558) 1,117 354 428 430 437
Warranty Reserve 300 600 600 600 600 600
------- ------- ------ ------ ------ ------
Total Changes In Working Capital 1,764 1,037 (276) (1,668) (1,762) (1,839)
CASH (USED FOR) GENERATED BY INVESTMENTS
Capital Expenditures (1,320) (11,519) (1,813) (884) (955) (955)
Proceeds From Sale Of Properties 0 4,493 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV (300) (360) (360) (360) (60) 0
Investment In Conversions 0 0 0 0 0 0
Real Estate Retained (1,324) (1,010) (1,950) (1,950) (1,950) (2,015)
Real Estate CIP (1,335) (2,496) 30 (0) (0) (0)
Bridge Loan 0 (201) (363) (305) (244) (194)
------- ------- ------ ------ ------ ------
Total Investments (4,278) (11,102) (4,456) (3,499) (3,209) (3,164)
CHANGES IN OTHER ASSETS
Investments/Other Assets 800 (140) (140) (140) (140) (140)
Notes Receivable 3,622 200 200 200 200 200
Distribution Rights 170 249 279 278 276 276
Note Pay Fees Expenses (241) 26 26 26 26 26
Less: Amortization (199) (407) (386) (336) (335) (335)
------- ------- ------ ------ ------ ------
Total Other 4,152 (72) (21) 28 27 27
Net From Operations 4,172 (6,005) 1,420 3,282 5,328 6,838
CASH FLOW FROM FINANCING ACTIVITIES
Existing Debt (5,678) 6,005 (1,420) (3,282) (5,328) 58
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
Net cash used in financing activities (5,678) 6,005 (1,420) (3,282) (5,382) 58
NET INCREASE (DECREASE) IN CASH (1,506) (0) 0 0 0 6,896
Cash, Beginning of Period 5,706 0 (0) 0 0 0
Cash Generated (Used) (1,506) (0) 0 0 0 6,896
------- ------- ------ ------ ------ ------
Cash, End of Period $4,200 ($0) $0 $0 $0 $6,896
Min Cash Balance 1994 $4,200
</TABLE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIOS
<TABLE>
<CAPTION>
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
BEGINNING DEBT BALANCE
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,571 4,069 5,535 6,966
LOC-BBC 6,208 734 10,034 8,402 4,923 175
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 12,660 12,660 12,660 12,660 12,660
-------- -------- -------- -------- -------- --------
Total Beginning Debt Balance 25,077 32,059 38,064 36,664 33,362 28,034
DEBT (REPAYMENT BORROWINGS)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 776 1,498 1,466 1,431 1,444
LOC-BBC (5,474) 9,301 (1,632) (3,479) (4,748) (175)
-------- -------- -------- -------- -------- --------
Total Existing Debt Borrowing (Repayment) (5,678) 6,005 (1,420) (3,282) (5,328) 58
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
-------- -------- -------- -------- -------- --------
Total Borrowing (Repayment) (5,678) 6,005 (1,420) (3,282) (5,328) 58
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,571 4,069 5,535 6,966 8,410
LOC-BBC 734 10,034 8,402 4,923 175 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 12,660 12,660 12,660 12,660 12,660
-------- -------- -------- -------- -------- --------
Total Ending Debt Balance 19,399 38,064 36,644 33,362 28,034 28,092
</TABLE>
<PAGE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INTEREST EXPENSE
Existing Debt Rate
<C>
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 218 332 480 625 769
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 444 760 550 210 7
-------- -------- -------- -------- -------- --------
Total Existing Debt Interest Expense 1,019 1,843 2,062 1,924 1,617 1,429
Acquisition Financing
Senior Debt 9.0% 0 0 0 0 0 0
Sub Debt 13.0% 0 1,646 1,646 1,646 1,646 1,646
-------- -------- -------- -------- -------- --------
Total Interest Expense $1,019 $3,488 $3,708 $3,570 $3,262 $3,075
Income on Cash 3.00% 74 63 (0) 0 0 103
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
-------- -------- -------- -------- -------- --------
$217 $177 $96 $78 $60 $145
</TABLE>
<PAGE>
EQUITY 1--INVESTORS RETURN
<TABLE>
<CAPTION>
CASH FLOW
----------------------------------------------------------------------------------------
EXIT MULTIPLE OWNERSHIP% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
32.5% 6.0x 94% ($24,514) ---- ---- ---- ----- 99,942
37.4% 7.0x 94% ($24,514) ---- ---- ---- ----- 119,915
41.7% 8.0x 94% ($24,514) ---- ---- ---- ----- 139,887
EQUITY 2--MANAGEMENT RETURN
CASH FLOW
----------------------------------------------------------------------------------------
EXIT MULTIPLE OWNERSHIP% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
#Value! 6.0x NMF 0 ---- ---- ---- ----- #VALUE!
#Value! 7.0x NMF 0 ---- ---- ---- ----- #VALUE!
#Value! 8.0x NMF 0 ---- ---- ---- ----- #VALUE!
SUB DEBT INVESTOR RETURN
CASH FLOW
----------------------------------------------------------------------------------------
EXIT MULTIPLE OWNERSHIP% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
20.0% 6.0x 6% ($12,660) 1,646 1,646 1,646 1,646 20,855
21.2% 7.0x 6% ($12,660) 1,646 1,646 1,646 1,646 22,164
22.3% 8.0x 6% ($12,660) 1,646 1,646 1,646 1,646 23,473
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
SUMMARY STATISTICS
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
-------------------- -------------------------------------------------------------------
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $133,425 $140,364 $148,531 $156,256 $163,560
EBITDA 7,624 6,058 7,456 8,249 10,874 13,075 14,325 14,987
EBIT 5,936 4,500 5,650 6,032 8,433 10,690 11,939 12,598
Total Interest 1,170 1,219 1,686 3,373 3,435 3,211 2,934 2,776
Net Interest 1,170 1,219 1,468 3,196 3,339 3,134 2,857 2,624
Net Income $2,783 $1,881 $2,415 $1,683 $2,991 $4,417 $5,295 $5,811
Earnings Per Share $0.80 $0.55 $0.72 $0.49 $0.87 $1.28 $1.54 $1.68
GROWTH MARGIN ANALYSIS
Net Sales Growth 5.2% 2.6% 2.3% 6.0% 5.2% 5.8% 5.2% 4.7%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.7% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 6.3% 7.7% 8.8% 9.2% 9.2%
EBIT Margin 5.0% 3.7% 4.5% 4.5% 6.0% 7.2% 7.6% 7.7%
Net Income Margin 2.3% 1.5% 1.9% 1.3% 2.1% 3.0% 3.4% 3.6%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 2.5x 3.2x 4.1x 4.9x 5.4x
EBITDA/Net Interest 6.5x 5.0x 5.1x 2.6x 3.3x 4.2x 5.0x 5.7x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -0.9x 2.6x 3.8x 4.6x 5.1x
EBIT/Total Interest 5.1x 3.7x 3.4x 1.8x 2.5x 3.3x 4.1x 4.5x
EBIT/ Net Interest 5.1x 3.7x 3.8x 1.9x 2.5x 3.4x 4.2x 4.8x
Total Debt/EBITDA 1.4x 2.3x 2.6x 4.2x 3.0x 2.2x 1.8x 1.7x
Debt/Total Capitalization 30.3% 43.2% 36.0% 66.8% 61.1% 53.4% 45.2% 40.5%
Debt/Equity 0.4x 0.8x 0.6x 2.0x 1.6x 1.1x 0.8x 0.7x
STORE COUNT (END OF PERIOD)
Franchise Stores 344 362 377 395 418 441 461 481
Company Stores 10 8 3 3 3 3 3 3
-------- -------- -------- -------- -------- -------- -------- --------
Total Stores 354 370 380 398 421 444 464 484
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
GENERAL ASSUMPTIONS TRANSACTION PURCHASE TERMS
____________________________________________________ _________________________________________________
<S> <C> <S> <C>
LBO/Sale of Company
____________________________________
Common Shares Outstanding 3,266 Equity Value 32,116
Stock Options 244 Total Debt Assumed 19,399
Total Shares 3,510 Less: Excess Cash (4,200)
------ -------
Avg. Exercise Price of Stock Options $6.35 Total Value (TV) 47,315
Cash Proceeds From Exercise Optoins 1,522
Cash Paid per Share $ 9.15
Market Price as of $16.00 Estimated Transaction Costs 2,000
Premium (Discount) Over Market Price -42.81% Less: Assumed Debt (19,399)
Less: Cash Proc.-Stock Options (1,552)
Total Debt Outstanding Before Purchase 19,399
Existing Debt Refinanced 0 Financing Needed $28,364
Debt Assumed 19,399 Rate % Equity
---- --------
<C> <C> <C>
Bank Debt 0 9.0% ---
EBITDA Exit Multiple 7.0x Subordinated Debt 12,550 13.0% 9.2%
Goodwill Amortization Period 40 yrs. Equity 1 - Investor 15,814 --- 90.8%
Transaction Cost Amortization Period 10 yrs Equity 2 - Management 0 --- 0.0%
------ ------
28,364 100.0%
</TABLE>
<TABLE>
<CAPTION>
PURCHASE PRICE MULTIPLES RATES OF RETURN SENSITIVITY
___________________________________________________ ___________________________________________________
1993 1994 1995 % Equity EBITDA Exit Multiple
____ ____ ____ ____________________________________
<S> <C> <C> <C>
TV/Sales 0.4x 0.4x 0.4x Allocation 6.0x 7.0x 8.0x
________________________________________________
<S> <C> <C> <C> <C>
TV/EBITDA 7.8x 6.3x 5.6x Equity-Inves. 90.8% 32.5% 37.7% 42.2%
TV/EBIT 10.5x 8.4x 7.8x Equity-Mngt. NMF NMF NMF NMF
Price/Earnings 12.6x 10.9x 18.6x Sub Debt 9.2% 20.0% 21.3% 22.5%
</TABLE>
<TABLE>
<CAPTION>
COVERAGES PRO FORMA
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
EBITDA/Total Interest 2.2x 2.502x 3.2x 4.1x 4.9x 5.4x
EBIT/Total Interest 1.7x 1.8x 2.5x 3.3x 4.1x 4.5x
Total Debt/EBITDA 4.3x 4.2x 3.0x 2.2x 1.8x 1.7x
Debt/Total Cap 66.9% 66.8% 61.1% 53.4% 45.2% 40.5%
Net Debt $31,949 $35,555 $32,919 $29,095 $24,173 $18,676
Cumulative Debt Repayment --- (3,606) 2,636 3,824 4,923 5,496
FINANCIAL
EPS $0.72 $0.49 $0.87 $1.28 $1.54 $1.68
</TABLE>
<PAGE>
MODERATE CASE - LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Acquisition Adjustments
Acquisition Adjustments
OPENING BALANCE SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
-------- ------ -------- -------- --------- -------- ----- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets
Current Assets
Investments $4,200 $4,200 $15,814 $12,550 $0 ($30,564) ($2,000) $0
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Current Assets 31,417 31,417 15,814 12,550 0 (30,564) (2,000) 0 27,217
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
-------- ------- -------
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 2,000 2,241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 (3,935) (3,935)
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Assets $64,234 $64,234 $15,814 $12,550 $0 ($30,564) $0 ($3,935) $58,099
-------- ------- -------- -------- --------- -------- ------- -------- ---------
-------- ------- -------- -------- --------- -------- ------- -------- ---------
Current Liabilities
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Current Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 0 0
Sub Debt 0 0 12,550 12,550
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Debt 19,399 19,399 0 12,550 0 0 0 0 31,949
New Common Stock 0 0 15,814 15,814
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 (30,564) (3,935) 453
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Equity 34,499 34,449 15,814
-------- ------- -------- -------- --------- -------- ------- -------- -------
Total Liab. & Equity $64,234 $64,234 $58,099
-------- ------- -------- -------- --------- -------- ------- -------- -------
-------- ------- -------- -------- --------- -------- ------- -------- -------
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical Projected
INCOME STATEMENT Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------------- ------------------------ --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $53,067 $64,127 $117,195 $125,611 $132,157 $139,855 $147,143 $154,025
Incremental Retail Sales 1,816 3,238 1,085 833 1,918 934 934 934 934 934
Franchise Fee Income 5,856 6,116 3,085 3,207 6,292 6,501 6,888 7,341 7,778 8,199
O Advertising 470 381 242 186 428 379 386 402 402 402
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 57,480 68,353 125,832 133,425 140,364 148,531 156,256 163,560
Cost Of Goods Sold(1) 94,720 97,829 44,424 54,990 99,414 108,713 112,959 118,183 123,917 129,816
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 13,056 13,363 26,418 24,712 27,405 30,348 32,339 33,744
Selling Gen. & Admin 17,455 18,035 9,388 8,906 18,294 16,450 16,783 17,625 18,468 19,313
Depreciation 1,120 1,168 605 794 1,399 1,889 1,953 1,948 1,949 1,952
Amort. of Finance Costs 0 0 0 0 0 0 0 0 0 0
Goodwill Amortization 0 0 0 0 0 0 0 0 0 0
Other Amortization 568 390 208 199 407 407 386 336 335 335
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(F1) 19,143 19,593 10,201 9,899 20,100 18,745 19,122 19,909 20,752 21,600
Operating Income 5,936 5,538 2,855 3,464 6,319 5,967 8,283 10,439 11,587 12,144
Lease (Income)-10% 0 0 0 (33) (33) (167) (252) (353) (454) (556)
Other Expenses/(Income) 0 1,038 702 0 702 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EBIT 5,963 4,500 2,153 3,497 5,650 6,134 8,535 10,792 12,041 12,700
Projected Costs Savings
Interest Expense
Existing Debt 1,170 1,219 667 1,019 1,686 1,528 1,351 1,240 1,200 1,144
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,219 667 1,019 1,686 1,528 1,351 1,240 1,200 1,144
Interest Income 0 0 0 217 217 177 104 160 278 420
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,219 667 801 1,468 1,351 1,248 1,080 922 724
Earnings Before Taxes 4,766 3,281 1,486 2,695 4,181 4,783 7,287 9,712 11,119 11,976
Income Taxes 1,983 1,400 631 1,135 1,766 2,014 3,068 4,089 4,688 5,049
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income To Common $2,783 $1,881 $855 $1,561 $2,415 $2,769 $4,219 $5,623 $6,431 $6,927
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EARNINGS PER SHARE
Actual $0.80 $0.55 $0.26 $0.46 $0.72 $0.81 $1.23 $1.63 $1.87 $2.00
Excl. One Time Items $0.73 $0.38 $0.84
Weighted Average Shares 3,497 3,410 3,333 3,416 3,374 3,424 3,432 3,440 3,448 3,456
- --------------------------
(1) All freight expense is in COGS
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical Pro Projected
BALANCE SHEET Year Ended Dec. 31, At Forma December 31,
------------------- -------------------- --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $4,200 $0 $537 $4,941 $9,611 $15,639
Receivables 8,835 7,722 9,870 8,407 8,407 8,915 9,378 9,924 10,440 10,928
Inventory 15,348 11,748 21,433 15,261 15,261 15,530 15,061 15,758 16,522 17,309
Deferred Income Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 27,217 28,383 29,304 35,339 41,679 49,372
Real Estate Retained 0 0 1,324 1,324 2,009 3,024 4,032 5,039 6,079
Real Estate CIP 0 0 1,750 3,085 3,085 3,706 3,675 3,664 3,664 3,664
Other P & E, net 12,166 13,153 13,477 14,003 14,003 19,140 19,001 17,937 16,943 15,946
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 24,855 25,699 25,633 25,646 25,689
Investment/Other Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 142 325 477 598 695
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 2,241 2,015 1,789 1,563 1,337 111
Goodwill 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $64,234 $67,812 $66,754 $75,871 $82,043 $89,513
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,085 3,613 7,792 3,679 3,679 4,530 4,707 4,924 5,163 5,409
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,286 3,458 3,659 3,849 4,028
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4,454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,270 13,219 14,238 15,266 16,291
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 950 0 6,208 734 734 2,706 0 0 0 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Debt 10,714 13,686 25,077 19,399 19,399 17,821 14,595 14,070 12,783 12,300
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities 23,489 25,119 41,779 29,736 29,736 30,351 27,814 28,308 28,048 28,592
New Common Stock 0 0 0 0 0 0 0 0 0 0
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 34,952 37,721 41,940 47,563 53,994 60,921
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 34,499 37,461 41,940 47,563 53,994 60,921
Total Liab.& Equity $57,679 $56,607 $74,741 $64,234 $64,234 $67,812 $69,754 $75,871 $82,043 $89,513
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
CASH FLOW STATEMENT ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
CASH FLOW FROM OPERATIONS
Net income $1,561 $2,769 $4,219 $5,623 $6,431 $6,927
Depreciation 794 1,889 1,953 1,948 1,949 1,952
Amortization 199 407 386 336 335 335
Increase Deferred Income/Taxes (19) (121) 0 0 0 0
-------- ------- ------- ------- ------- -------
Total Cash Flow From Operations 2,535 4,944 6,558 7,907 8,715 9,214
Changes in Working Capital
Accounts Receivable 1,463 (507) (464) (546) (516) (488)
Inventories 6,172 (269) 469 (696) (764) (787)
Deferred Income Taxes (476) (389) (389) (389) (389) (389)
Other Current Assets 976 0 0 0 0 0
Accounts Payable (4,113) 850 177 218 239 246
Accrued Expenses (2,558) 1,057 172 201 189 180
Warranty Reserve 300 600 600 600 600 600
-------- ------- ------- ------- ------- -------
Total Changes In Working Capital 1,764 1,341 565 (613) (642) (638)
Cash (Used For) Generated By Investments
Capital Expenditures (1,320) (11,519) (1,813) (884) (955) (955)
Proceeds From Sale Of Properties 0 4,493 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV (300) (360) (360) (360) (60) 0
Investment In Conversions 0 0 0 0 0 0
Real Estate Retained (1,324) (685) (1,015) (1,009) (1,006) (1,040)
Real Estate CIP (1,335) (621) 31 11 (0) (0)
Bridge Loan 0 (142) (182) (152) (121) (96)
-------- ------- ------- ------- ------- -------
Total Investments (4,278) (8,835) (3,339) (2,394) (2,143) (2,091)
CHANGES IN OTHER ASSETS
Investments/Other Assets 800 (140) (140) (140) (140) (140)
Notes Receivable 3,622 200 200 200 200 200
Distribution Rights 170 249 279 278 276 276
Note Pay Fees Expenses (241) 26 26 26 26 26
Less: Amortization (199) (407) (386) (336) (335) (335)
-------- ------- ------- ------- ------- -------
Total Other 4,152 (72) (21) 28 27 27
NET FROM OPERATIONS 4,172 (2,6622 3,763 4,929 5,957 6,511
CASH FLOW FROM FINANCING ACTIVITIES
Existing Debt (5,678) (1,578) (3,226) (525) (1,288) (482)
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
Net cash used in financing activities (5,678) (1,578) (3,226) (525) (1,288) (482)
NET INCREASE (DECREASE) IN CASH (1,506) (4,200) 537 4,404 4,669 6,029
Cash, Beginning of Period 5,706 4,200 0 537 4,941 9,611
Cash Generated (Used) (1,506) (4,200) 537 4,404 4,669 6,029
-------- ------- ------- ------- ------- -------
Cash, End of Period $4,200 $0 $537 $4,941 $9,611 $15,639
Min Cash Balance 1994 $4,200
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Beginning Debt Balance
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,315 3,082 3,826 4,550
LOC-BBC 6,208 734 7,891 5,774 2,475 0
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 12,550 12,550 12,550 12,550 12,550
______ ______ ______ ______ ______ ______
Total Beginning Debt Balance 25,077 31,949 35,555 32,919 29,095 25,333
Debt (Repayment Borrowings)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 520 767 744 723 729
LOC-BBC (5,474) 7,157 (2,117) (3,229) (2,475) 0
______ ______ ______ ______ ______ ______
Total Existing Debt Borrowing (Repayment) (5,678) 3,606 (2,636) (3,824) (3,763) (482)
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Borrowing (Repayment) (5,678) 3,606 (2,636) (3,824) (3,763) (482)
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 734 7,891 5,774 2,475 0 0
Acquisition Financing 0 0 0 0 0 0
Senior Debt 0 0 0 0 0 0
Sub Debt 0 12,550 12,550 12,550 12,550 12,550
______ ______ ______ ______ ______ ______
Total Ending Debt Balance 19,399 35,555 32,919 29,095 25,333 24,850
</TABLE>
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
--------- -------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt Rate
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 206 270 345 419 491
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 356 564 340 102 0
______ ______ ______ ______ ______ ______
Total Existing Debt Interest Expense 1,019 1,741 1,803 1,580 1,302 1,144
Acquisition Financing
Senior Debt 9.0% 0 0 0 0 0 0
Sub Debt 13.0% 0 1,632 1,632 1,632 1,632 1,632
______ ______ ______ ______ ______ ______
Total Interest Expense $1,019 $3,373 $3,435 $3,211 $2,934 $2,776
Income on Cash 3.00% 74 63 0 (0) 17 110
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
________ ______ ______ _____ ______ _______
$217 $177 $96 $78 $77 $152
</TABLE>
<PAGE>
EQUITY 1--INVESTORS RETURN
<TABLE>
<CAPTION>
CASH FLOW
-----------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
32.5% 6.0x 91% ($15,814) ---- ---- ---- ----- 64,691
37.7% 7.0x 91% ($15,814) ---- ---- ---- ----- 78,299
42.2% 8.0x 91% ($15,814) ---- ---- ---- ----- 91,907
EQUITY 2--MANAGEMENT RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
#Value! 6.0x NMF 0 ---- ---- ---- ----- #VALUE!
#Value! 7.0x NMF 0 ---- ---- ---- ----- #VALUE!
#Value! 8.0x NMF 0 ---- ---- ---- ----- #VALUE!
SUB DEBT INVESTOR RETURN
CASH FLOW
------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
20.0% 6.0x 9% ($12,550) 1,632 1,632 1,632 1,632 20,736
21.2% 7.0x 9% ($12,550) 1,632 1,632 1,632 1,632 22,115
22.3% 8.0x 9% ($12,550) 1,632 1,632 1,632 1,632 23,494
</TABLE>
<PAGE>
PART IV
MERGER/SALE OF COMPANY TO STRATEGIC BUYER SCENARIOS
<PAGE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
SUMMARY STATISTICS
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
________ ________ ___________________________________________________________________
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $135,854 $150,201 $167,581 $185,075 $202,805
EBITDA 7,624 6,058 7,456 10,812 14,463 18,336 21,338 23,813
EBIT 5,936 4,500 5,650 6,892 10,445 14,321 17,275 19,699
Total Interest 1,170 1,219 1,686 4,316 4,472 4,262 4,011 3,926
Net Interest 1,170 1,219 1,468 4,140 4,377 4,184 3,902 3,663
Net Income $2,783 $1,881 $2,415 $1,059 $2,979 $5,335 $7,200 $8,740
Earnings Per Share $0.80 $0.55 $0.72 $0.31 $0.87 $1.55 $2.09 $2.53
Growth Margin Analysis
Net Sales Growth 5.2% 2.6% 2.3% 8.0% 10.6% 11.6% 10.4% 9.6%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.6% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 8.0% 9.6% 10.9% 11.5% 11.7%
EBIT Margin 5.0% 3.7% 4.5% 5.1% 7.0% 8.5% 9.3% 9.7%
Net Income Margin 2.3% 1.5% 1.9% 0.8% 2.0% 3.2% 3.9% 4.3%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 2.5x 3.2x 4.3x 5.3x 6.1x
EBITDA/Net Interest 6.5x 5.0x 5.1x 2.6x 3.3x 4.4x 5.5x 6.5x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -0.2x 2.8x 4.1x 5.1x 5.8x
EBIT/Total Interest 5.1x 3.7x 3.4x 1.6x 2.3x 3.4x 4.3x 5.0x
EBIT/ Net Interest 5.1x 3.7x 3.8x 1.7x 2.4x 3.4x 4.4x 5.4x
Total Debt/EBITDA 1.4x 2.3x 2.6x 4.9x 3.5x 2.5x 2.0x 1.8x
Debt/Total Capitalization 30.3% 43.2% 36.0% 48.2% 45.7% 41.4% 37.3% 34.8%
Debt/Equity 0.4x 0.8x 0.6x 0.9x 0.8x 0.7x 0.6x 0.5x
Store Count (end of period)
Franchise Stores 344 362 377 417 467 517 567 617
Company Stores 10 8 3 3 3 3 3 3
___ ___ ___ ___ ___ ___ ___ ___
Total Stores 354 370 380 420 470 520 570 620
</TABLE>
<PAGE>
AGGRESSIVE CASE - LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
GENERAL ASSUMPTIONS TRANSACTION PURCHASE TERMS
____________________________________________________ _________________________________________________
<S> <C> <S> <C>
LBO/Sale of Company
____________________________________
Common Shares Outstanding 3,266 Equity Value 86,801
Stock Options 244 Total Debt Assumed 19,399
Total Shares 3,510 Less: Excess Cash (4,200)
________ ________
Avg. Exercise Price of Stock Options $6.35 Total Value (TV) 102,000
Cash Proceeds From Exercise Optoins 1,522
Cash Paid per Share $24.73
Market Price as of $16.00 Estimated Transaction Costs 2,000
Premium (Discount) Over Market Price 54.56% Less: Assumed Debt (19,399)
Less: Cash Proc.-Stock Options (1,552)
Total Debt Outstanding Before Purchase 19,399
Existing Debt Refinanced 0 Financing Needed $83,049
Debt Assumed 19,399 Rate % Equity
____ ________
<C> <C> <C>
Bank Debt 27,820 9.0% ---
EBITDA Exit Multiple 7.0x Subordinated Debt 0 13.0% 0.0%
Goodwill Amortization Period 40 yrs. Equity 1 - Investor 55,229 --- 100.0%
Transaction Cost Amortization Period 10 yrs Equity 2 - Management 0 --- 0.0%
______ ________
83,049 100.0%
</TABLE>
<TABLE>
<CAPTION>
PURCHASE PRICE MULTIPLES RATES OF RETURN SENSITIVITY
___________________________________________________ ___________________________________________________
1993 1994 1995 % Equity EBITDA Exit Multiple
____ ____ ____ ____________________________________
<S> <C> <C> <C>
TV/Sales 0.8x 0.8x 0.8x Allocation 6.0x 7.0x 8.0x
________________________________________________
<S> <C> <C> <C> <C>
TV/EBITDA 16.8x 13.7x 9.4x Equity-Inves. 100.0% 15.0% 19.5% 23.5%
TV/EBIT 22.7x 18.1x 14.8x Equity-Mngt. NMF NMF NMF NMF
Price/Earnings 34.1x 29.6x 79.9x Sub Debt NMF NMF NMF NMF
</TABLE>
<TABLE>
<CAPTION>
COVERAGES PRO FORMA
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
EBITDA/Total Interest 1.8X 2.50x 3.2x 4.3x 5.3x 6.1x
EBIT/Total Interest 1.3x 1.6x 2.3x 3.4x 4.3x 5.0x
Total Debt/EBITDA 6.3x 4.9X 3.5x 2.5x 2.0x 1.8x
Debt/Total Cap 46.1% 48.2% 45.7% 41.4% 37.3% 34.8%
Net Debt $47,219 $52,498 $50,254 $46,043 $39,725 $31,847
Cumulative Debt Repayment --- (5,279) 2,244 4,211 6,319 7,878
FINANCIAL STATISTICS
EPS $0.72 $0.31 $0.87 $1.55 $2.09 $2.53
</TABLE>
<PAGE>
AGGRESSIVE CASE - LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
OPENING BALANCE SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
-------- ------- ------- -------- --------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/ Investments $4,200 $4,200 $55,229 $27,820 $0 ($85,249) ($2,000) $0
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Current Assets 31,417 31,417 55,229 27,820 0 (85,249) (2,000) 0 27,217
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 2,000 2,241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 50,750 50,750
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Assets $64,234 $64,234 $55,229 $27,820 $0 ($85,249) $0 $50,750 $112,784
-------- ------- ------- -------- --------- -------- ------- -------- ---------
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Current Liabilities
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Current Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 27,820 27,820
Sub Debt 0 0 0 0
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Debt 19,399 19,399 0 27,820 0 0 0 0 47,219
New Common Stock 0 0 55,229 55,229
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 (85,249) 50,750 453
-------- ------- ------- -------- --------- -------- ------- -------- ---------
Total Equity 34,499 34,449 55,229
-------- ------ --------
Total Liab. & Equity $64,234 $64,234 $112,784
-------- ------- ------- -------- --------- -------- ------- -------- ---------
-------- ------- ------- -------- --------- -------- ------- -------- ---------
</TABLE>
<PAGE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical Projected
INCOME STATEMENT Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------------- ------------------------ --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $53,067 $64,127 $117,195 $127,920 $141,503 $157,949 $174,505 $191,274
Incremental Retail Sales 1,816 3,238 1,085 833 1,918 934 934 934 934 934
Franchise Fee Income 5,856 6,116 3,085 3,207 6,292 6,622 7,378 8,297 9,234 10,195
O Advertising 470 381 242 186 428 379 386 402 402 402
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 57,480 68,353 125,832 135,854 150,201 167,581 185,075 202,805
Cost Of Goods Sold(1) 94,720 97,829 44,424 54,990 99,414 110,704 120,922 133,423 146,887 161,089
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 13,056 13,363 26,418 25,150 29,279 34,158 38,188 41,715
Selling Gen. & Admin 17,455 18,035 9,388 8,906 18,294 14,521 15,147 16,348 17,571 18,822
Depreciation 1,120 1,168 605 794 1,399 2,044 2,163 2,211 2,260 2,310
Amort. of Finance Costs 0 0 0 0 0 200 200 200 200 200
Goodwill Amortization 0 0 0 0 0 1,269 1,269 1,269 1,269 1,269
Other Amortization 568 390 208 199 407 407 386 336 335 335
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(1) 19,143 19,593 10,201 9,899 20,100 18,441 19,165 20,363 21,634 22,935
Operating Income 5,936 5,538 2,855 3,464 6,319 6,709 10,114 13,795 16,554 18,780
Lease (Income)-10% 0 0 0 (33) (33) (183) (331) (526) (721) (919)
Other Expenses/(Income) 0 1,038 702 0 702 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EBIT 5,936 4,500 2,153 3,497 5,650 6,892 10,445 14,321 17,275 19,699
Interest Expense
Existing Debt 1,170 1,219 667 1,019 1,686 1,813 1,968 1,758 1,507 1,422
Acquisition Financing
Senior Debt 0 0 0 0 0 2,504 2,504 2,504 2,504 2,504
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,219 667 1,019 1,686 4,316 4,472 4,262 4,011 3,926
Interest Income 0 0 0 217 217 177 96 78 109 262
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,219 667 801 1,468 4,140 4,377 4,184 3,902 3,663
Earnings Before Taxes 4,766 3,281 1,486 2,695 4,181 2,752 6,068 10,136 13,373 16,036
Income Taxes 1,983 1,400 631 1,135 1,766 1,693 3,089 4,802 6,173 7,296
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income To Common $2,783 $1,881 $855 $1,561 $2,415 $1,059 $2,979 $5,335 $7,200 $8,740
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Earnings Per Share
Actual $0.80 $0.55 $0.26 $0.46 $0.72 $0.31 $0.87 $1.55 $2.09 $2.53
Excl. One Time Items $0.73 $0.38 $0.84
Weighted Average Shares 3,497 3,410 3,333 3,416 3,374 3,424 3,432 3,440 3,448 3,456
- --------------------------
(1) All freight expense is in COGS
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Historical Projected
BALANCE SHEET Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------------- ------------------------ --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $0 ($0) $0 $0 $3,294 $11,405
Receivables 8,835 7,722 9,870 8,407 8,407 9,077 10,036 11,197 12,366 13,550
Inventory 15,348 11,748 21,433 15,261 15,261 15,815 16,123 17,790 19,585 21,479
Deferred Income Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 27,217 28,383 30,485 33,703 40,351 51,929
Real Estate Retained 0 0 1,324 1,324 2,334 4,284 6,234 8,184 10,199
Real Estate CIP 0 0 1,750 3,085 3,085 5,581 5,551 5,551 5,551 5,551
Other P & E, net 12,166 13,153 13,477 14,003 14,003 18,985 18,635 17,308 16,003 14,649
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 26,900 28,470 29,093 29,738 30,398
Investment/Other Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 210 573 878 1,123 1,317
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 2,241 2,015 1,789 1,563 1,337 1,111
Goodwill 0 0 0 0 50,750 49,481 48,213 46,944 45,675 44,406
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $112,784 $121,652 $123,767 $126,440 $132,207 $142,808
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,085 3,613 7,792 3,679 3,679 4,613 5,038 5,559 6,120 6,712
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,346 3,700 4,129 4,558 4,995
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4,454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,413 13,793 15,342 16,933 18,561
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,571 4,069 5,535 6,966 8,418
LOC-BBC 950 0 6,208 734 734 9,308 6,852 2,444 0 0
Acquisition Financing
Senior Debt 0 0 0 0 27,820 27,820 27,820 27,820 27,820 27,820
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
TOTAL DEBT 10,714 13,686 25,077 19,399 47,219 52,498 50,254 46,043 43,019 43,252
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Liabilities 23,489 25,119 41,779 29,736 57,566 65,171 64,046 61,385 59,952 61,813
New Common Stock 0 0 0 0 55,229 55,229 55,229 55,229 55,229 55,229
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 453 1,512 4,491 9,826 17,026 25,766
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 55,229 56,481 59,720 65,055 72,255 80,995
Total Liab.& Equity $57,679 $56,607 $74,741 $64,234 $112,784 $121,652 $123,767 $126,440 $132,207 $142,808
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Projected
CASH FLOW STATEMENT ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _________________________________________________________
12/31/94 1995 1996 1997 1998 1999
-------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Cash Flow From Operations
Net income $1,561 $1,059 $2,979 $5,335 $7,200 $8,740
Depreciation 794 2,044 2,163 2,211 2,260 2,310
Amortization 199 1,876 1,855 1,805 1,804 1,804
Increase Deferred Income/Taxes (19) (121) 0 0 0 0
-------- ------- ------- ------- ------- -------
Total Cash Flow From Operations 2,535 4,858 6,997 9,350 11,263 12,854
CHANGES IN WORKING CAPITAL
Accounts Receivable 1,463 (670) (959) (1,161) (1,169) (1,185)
Inventories 6,172 (554) (308) (1,667) (1,795) (1,894)
Deferred Income Taxes (476) (389) (389) (389) (389) (389)
Other Current Assets 976 0 0 0 0 0
Accounts Payable (4,113) 933 426 521 561 592
Accrued Expenses (2,558) 1,117 354 428 430 437
Warranty Reserve 300 600 600 600 600 600
-------- ------- ------- ------- ------- -------
Total Changes In Working Capital 1,764 1,037 (276) (1,668) (1,762) (1,839)
CASH (USED FOR) GENERATED BY INVESTMENTS
Capital Expenditures (1,320) (11,519) (1,813) (884) (955) (955)
Proceeds From Sale Of Properties 0 4,493 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV (300) (360) (360) (360) (60) 0
Investment In Conversions 0 0 0 0 0 0
Real Estate Retained (1,324) (1,010) (1,950) (1,950) (1,950) (2,015)
Real Estate CIP (1,335) (2,496) 30 (0) (0) (0)
Bridge Loan 0 (210) (363) (305) (244) (194)
-------- ------- ------- ------- ------- -------
Total Investments (4,278) (11,102) (4,456) (3,499) (3,209) (3,164)
CHANGES IN OTHER ASSETS
Investments/Other Assets 800 (140) (140) (140) (140) (140)
Notes Receivable 3,622 200 200 200 200 200
Distribution Rights 170 249 279 278 276 276
Note Pay Fees Expenses (241) 26 26 26 26 26
Less: Amortization (199) (407) (386) (336) (335) (335)
-------- ------- ------- ------- ------- -------
Total Other 4,152 (72) (21) 28 27 27
Net From Operations 4,172 (5,279) 2,244 4,211 6,319 7,878
CASH FLOW FROM FINANCING ACTIVITIES
Existing Debt (5,678) 5,279 (2,244) (4,211) (3,024) 233
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
Net cash used in financing activities (5,678) 5,279 (2,244) (4,211) (3,024) 233
NET INCREASE (DECREASE) IN CASH (1,506) 0 0 (0) 3,294 8,110
Cash, Beginning of Period 5,706 0 0 0 (0) 3,294
Cash Generated (Used) (1,506) 0 0 (0) 3,294 8,110
-------- ------- ------- ------- ------- -------
Cash, End of Period $4,200 $0 $0 ($0) 3,294 $11,405
Min Cash Balance 1994 $4,200
</TABLE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Beginning Debt Balance
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,571 4,069 5,535 6,966
LOC-BBC 6,208 734 9,308 6,852 2,444 0
Acquisition Financing
Senior Debt 0 27,820 27,820 27,820 27,820 27,820
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Beginning Debt Balance 25,077 47,219 52,498 50,254 46,043 43,019
Debt (Repayment Borrowings)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 776 1,498 1,466 1,431 1,444
LOC-BBC (5,474) 8,574 (2,456) (4,407) (2,444) 0
______ ______ ______ ______ ______ ______
Total Existing Debt Borrowing (Repayment) (5,678) 5,279 (2,244) (4,211) (3,024) 233
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Borrowing (Repayment) (5,678) 5,279 (2,244) (4,211) (3,024) 233
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,571 4,069 5,535 6,966 8,410
LOC-BBC 734 9,308 6,852 2,444 0 0
Acquisition Financing
Senior Debt 0 27,820 27,820 27,820 27,820 27,820
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Ending Debt Balance 19,399 52,498 50,254 46,043 43,019 43,252
</TABLE>
<PAGE>
AGGRESSIVE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
--------- -------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt Rate
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 218 332 480 625 769
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 414 667 383 101 0
______ ______ ______ ______ ______ ______
Total Existing Debt Interest Expense 1,019 1,813 1,968 1,758 1,507 1,422
Acquisition Financing
Senior Debt 9.0% 0 2,504 2,504 2,504 2,504 2,504
Sub Debt 13.0% 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Interest Expense $1,019 $4,316 $4,472 $4,262 $4,011 $3,926
Income on Cash 3.00% 74 63 0 (0) 49 220
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
________ ______ ______ _____ ______ _______
$217 $177 $96 $78 $109 $262
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EQUITY 1--INVESTORS RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
15.0% 6.0x 100% ($55,229) ---- ---- ---- ----- 111,030
19.5% 7.0x 100% ($55,229) ---- ---- ---- ----- 134,842
42.2% 8.0x 100% ($55,229) ---- ---- ---- ----- 158,655
EQUITY 2--MANAGEMENT RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
####### 6.0x NMF 0 ---- ---- ---- ----- #VALUE!
####### 7.0x NMF 0 ---- ---- ---- ----- #VALUE!
####### 8.0x NMF 0 ---- ---- ---- ----- #VALUE!
SUB DEBT INVESTOR RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
<S> <C> <C> <C> <C> <C> <C> <C> <C>
#NUM! 6.0x 9% 0 ----- ----- ----- ----- ------
#NUM! 7.0x 9% 0 ----- ----- ----- ----- ------
#NUM! 8.0x 9% 0 ----- ----- ----- ----- ------
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
HISTORICAL PROJECTED
________ ________ ___________________________________________________________________
INCOME STATEMENT SUMMARY 1992 1993 1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $119,799 $122,960 $125,832 $133,425 $140,364 $148,531 $156,256 $163,560
EBITDA 7,624 6,058 7,456 10,512 13,060 15,372 16,736 17,518
EBIT 5,936 4,500 5,650 7,189 9,694 12,061 13,425 14,204
Total Interest 1,170 1,219 1,686 4,211 4,210 3,914 3,700 3,644
Net Interest 1,170 1,219 1,468 4,034 4,114 3,837 3,571 3,373
Net Income $2,783 $1,881 $2,415 $1,478 $2,883 $4,413 $5,350 $5,916
Earnings Per Share $0.80 $0.55 $0.72 $0.43 $0.84 $1.28 $1.55 $1.71
Growth Margin Analysis
Net Sales Growth 5.2% 2.6% 2.3% 6.0% 5.2% 5.8% 5.2% 4.7%
Gross Margin 20.9% 20.4% 21.0% 18.5% 19.5% 20.4% 20.7% 20.6%
EBITDA Margin 6.4% 4.9% 5.9% 7.9% 9.3% 10.3% 10.7% 10.7%
EBIT Margin 5.0% 3.7% 4.5% 5.4% 6.9% 8.1% 8.6% 8.7%
Net Income Margin 2.3% 1.5% 1.9% 1.1% 2.1% 3.0% 3.4% 3.6%
COVERAGES
EBITDA/Total Interest 6.5x 5.0x 4.4x 2.5x 3.1x 3.9x 4.5x 4.8x
EBITDA/Net Interest 6.5x 5.0x 5.1x 2.6x 3.2x 4.0x 4.7x 5.2x
EBITDA/Cap Ex/Tot. Interest 5.9x 3.2x 3.3x -0.2x 2.7x 3.7x 4.3x 4.5x
EBIT/Total Interest 5.1x 3.7x 3.4x 1.7x 2.3x 3.1x 3.6x 3.9x
EBIT/ Net Interest 5.1x 3.7x 3.8x 1.8x 2.4x 3.1x 3.8x 4.2x
Total Debt/EBITDA 1.4x 2.3x 2.6x 4.8x 3.6x 2.7x 2.4x 2.3x
Debt/Total Capitalization 30.3% 43.2% 36.0% 56.0% 52.3% 47.2% 43.7% 40.8%
Debt/Equity 0.4x 0.8x 0.6x 1.3x 1.1x 0.9x 0.8x 0.7x
Store Count (end of period)
Franchise Stores 344 362 377 395 418 441 461 481
Company Stores 10 8 3 3 3 3 3 3
___ ___ ___ ___ ___ ___ ___ ___
Total Stores 354 370 380 398 421 444 464 484
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
GENERAL ASSUMPTIONS TRANSACTION PURCHASE TERMS
____________________________________________________ _________________________________________________
<S> <C> <S> <C>
LBO/Sale of Company
____________________________________
Common Shares Outstanding 3,266 Equity Value 69,146
Stock Options 244 Total Debt Assumed 19,399
Total Shares 3,510 Less: Excess Cash (4,200)
________ ________
Avg. Exercise Price of Stock Options $6.35 Total Value (TV) 84,345
Cash Proceeds From Exercise Optoins 1,522
Cash Paid per Share $19.70
Market Price as of $16.00 Estimated Transaction Costs 2,000
Premium (Discount) Over Market Price 23.13% Less: Assumed Debt (19,399)
Less: Cash Proc.-Stock Options (1,552)
Total Debt Outstanding Before Purchase 19,399
Existing Debt Refinanced 0 Financing Needed $65,394
Debt Assumed 19,399 Rate % Equity
____ ________
<C> <C> <C>
Bank Debt 27,770 9.0% ---
EBITDA Exit Multiple 7.0x Subordinated Debt 0 13.0% 0.0%
Goodwill Amortization Period 40 yrs. Equity 1 - Investor 37,624 --- 100.0%
Transaction Cost Amortization Period 10 yrs Equity 2 - Management 0 --- 0.0%
______ ________
65,394 100.0%
</TABLE>
<TABLE>
<CAPTION>
PURCHASE PRICE MULTIPLES RATES OF RETURN SENSITIVITY
___________________________________________________ ___________________________________________________
1993 1994 1995 % Equity EBITDA Exit Multiple
____ ____ ____ ____________________________________
<S> <C> <C> <C>
TV/Sales 0.7x 0.7x 0.6x Allocation 6.0x 7.0x 8.0x
________________________________________________
<S> <C> <C> <C> <C>
TV/EBITDA 13.9x 11.3x 8.0x Equity-Inves. 100.0% 15.0% 19.9% 24.1%
TV/EBIT 18.7x 14.9x 11.7x Equity-Mngt. NMF NMF NMF NMF
Price/Earnings 27.1x 23.6x 45.6x Sub Debt NMF NMF NMF NMF
</TABLE>
<TABLE>
<CAPTION>
COVERAGES PRO FORMA
1994 1995 1996 1997 1998 1999
____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
EBITDA/Total Interest 1.8X 2.50x 3.1x 3.9x 4.5x 4.8x
EBIT/Total Interest 1.4x 1.7x 2.3x 3.1x 3.6x 3.9x
Total Debt/EBITDA 6.3x 4.8X 3.6x 2.7x 2.4x 2.3x
Debt/Total Cap 55.6% 56.0% 52.3% 47.2% 43.7% 40.8%
Net Debt $47,219 $50,054 $46,601 $41,855 $35,951 $29,423
Cumulative Debt Repayment --- (2,885) 3,454 4,746 5,904 6,527
FINANCIAL STATISTICS
EPS $0.72 $0.43 $0.84 01.28 $1.55 $1.71
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Acquisition Adjustments
OPENING BALANCE SHEET As of Adj Equity Loans to Refinance Purchase Pay Allocate Pro Forms
12/31/94 FMV Invt. Newco Debt Company Fees Goodwill 6/30/94
-------- ------- ------- ------- ------- -------- ------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/ Investments $4,200 $4,200 $37,624 $27,770 $0 ($67,594) ($2,000) $0
Receivables 8,407 8,407 8,407
Inventory 15,261 15,261 15,261
Deferred Income Taxes 2,501 2,501 2,501
Other Current Assets 1,047 1,047 1,047
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Current Assets 31,417 31,417 37,624 27,770 0 (67,594) (2,000) 0 27,217
Real Estate Retained 1,324 1,324 1,324
Real Estate CIP 3,085 3,085 3,085
Other Prop.& Equip.,net 14,003 14,003 14,003
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total PP&E 18,411 18,411 18,411
Transaction Costs 241 241 2,000 2,241
Investment/Other Asset 2,043 2,043 2,043
Invest in Oper JV 1,414 1,414 1,414
Invest in Dev JV 300 300 300
Notes Receivable 1,362 1,362 1,362
Distribution Rights 9,046 9,046 9,046
Goodwill 0 0 33,095 33,095
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Assets $64,234 $64,234 $37,624 $27,770 $0 ($67,594) $0 $33,095 $95,129
-------- ------- ------- ------- ------- -------- ------- -------- ---------
-------- ------- ------- ------- ------- -------- ------- -------- ---------
CURRENT LIABILITIES
Accounts Payable 3,679 3,679 3,679
Accrued Expenses 2,229 2,229 2,229
Warranty Reserve 3,854 3,854 3,854
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Current Liabilities 9,763 9,763 9,763
Deferred Income Taxes 0 0 0
ESOP Obligation 453 453 453
Deferred Income 121 121 121
Existing Debt
Senior Notes 8,000 8,000 8,000
Long Term Debt(IN) 1,451 1,451 1,451
Long Term Debt(KellySpr.) 4,400 4,400 4,400
Other Senior Debt 3,019 3,019 3,019
AT&T LTD 1,795 1,795 1,795
LOC-BBC 734 734 734
Acquisition Financing
Senior Debt 0 0 27,770 27,770
Sub Debt 0 0 0 0
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Debt 19,399 19,399 0 27,770 0 0 0 0 47,169
New Common Stock 0 0 37,624 37,624
Common Stock 14,808 0 0
ESOP Obligation (453) (453) (453)
Retained Earnings 20,144 34,952 (67,594) 0 33,095 453
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Equity 34,499 34,449 37,624
-------- ------- ------- ------- ------- -------- ------- -------- ---------
Total Liab. & Equity $64,234 $64,234 $95,129
-------- ------- ------- ------- ------- -------- ------- -------- ---------
-------- ------- ------- ------- ------- -------- ------- -------- ---------
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical Projected
INCOME STATEMENT Year Ended Dec. 31, 6 Months Ended Year Ended December 31,
------------------------- ------------------------ --------------------------------------------------
(in thousands) 1992 1993 6/30/94 12/31/94 1994 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RSC Sales $111,657 $113,225 $53,067 $64,127 $117,195 $125,611 $132,157 $139,855 $147,143 $154,025
Incremental Retail Sales 1,816 3,238 1,085 833 1,918 934 934 934 934 934
Franchise Fee Income 5,856 6,116 3,085 3,207 6,292 6,501 6,888 7,341 7,778 8,199
O Advertising 470 381 242 186 428 428 379 386 402 402
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Sales 119,799 122,960 57,480 68,353 125,832 133,425 140,364 148,531 156,256 163,560
Cost Of Goods Sold(1) 94,720 97,829 44,424 54,990 99,414 108,713 112,959 118,183 123,917 129,816
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Gross Profit 25,078 25,131 13,056 13,363 26,418 24,712 27,405 30,348 32,339 33,744
Selling Gen. & Admin 17,455 18,035 9,388 8,906 18,294 14,367 14,596 15,329 16,057 16,781
Depreciation 1,120 1,168 605 794 1,399 1,889 1,953 1,948 1,949 1,952
Amort. of Finance Costs 0 0 0 0 0 200 200 200 200 200
Goodwill Amortization 0 0 0 0 0 827 827 827 827 827
Other Amortization 568 390 208 199 407 407 386 336 335 335
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total S G & A(1) 19,143 19,593 10,201 9,899 20,100 17,690 17,962 18,640 19,368 20,095
Operating Income 5,936 5,538 2,855 3,464 6,319 7,022 9,443 11,708 12,971 13,648
Lease (Income)-10% 0 0 0 (33) (33) (167) (252) (353) (454) (556)
Other Expenses/(Income) 0 1,038 702 0 702 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EBIT 5,936 4,500 2,153 3,497 5,650 7,189 9,694 12,061 13,425 14,204
Projected Costs Savings
Interest Expense
Existing Debt 1,170 1,219 667 1,019 1,686 1,712 1,710 1,415 1,201 1,144
Acquisition Financing
Senior Debt 0 0 0 0 0 2,499 2,499 2,499 2,499 2,499
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Expense 1,170 1,219 667 1,019 1,686 4,211 4,210 3,914 3,700 3,644
Interest Income 0 0 0 217 217 177 96 78 129 270
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Interest Expense 1,170 1,219 667 801 1,468 4,034 4,114 3,837 3,571 3,373
Earnings Before Taxes 4,766 3,281 1,486 2,695 4,181 3,155 5,580 8,224 9,853 10,831
Income Taxes 1,983 1,400 631 1,135 1,766 1,676 2,698 3,811 4,503 4,915
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Net Income To Common $2,783 $1,881 $855 $1,561 $2,415 $1,478 $2,883 $4,413 $5,350 $5,916
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
EARNINGS PER SHARE
Actual $0.80 $0.55 $0.26 $0.46 $0.72 $0.43 $0.84 $1.28 $1.55 $1.71
Excl. One Time Items $0.73 $0.38 $0.84
Weighted Average Shares 3,497 3,410 3,333 3,416 3,374 3,424 3,432 3,440 3,448 3,456
- --------------------------
(1) All freight expense is in COGS
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Historical
BALANCE SHEET Year Ended Dec. 31, Projected
------------------------- At Pro Forma
(in thousands) 1992 1993 6/30/94 31-Dec-94 31-Dec-94 1995 1996 1997 1998 1999
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Current Assets
Cash/Investments $1,590 $1,113 $5,706 $4,200 $0 ($0) $0 $0 $4,602 $10,647
Receivables 8,835 7,722 9,870 8,407 8,407 8,915 9,378 9,924 10,440 10,928
Inventory 15,348 11,748 21,433 15,261 15,261 15,530 15,061 15,758 16,522 17,309
Deferred Income Taxes 1,970 1,802 2,025 2,501 2,501 2,891 3,280 3,669 4,059 4,448
Other Current Assets 443 758 2,023 1,047 1,047 1,047 1,047 1,047 1,047 1,047
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Assets 28,186 23,143 41,057 31,417 27,217 28,383 28,767 30,398 36,670 44,379
Real Estate Retained 0 0 1,324 1,324 2,009 3,024 4,032 5,039 6,079
Real Estate CIP 0 0 1,750 3,085 3,085 3,706 3,675 3,664 3,664 3,664
Other P & E, net 12,166 13,153 13,477 14,003 14,003 19,140 19,001 17,937 16,743 15,946
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total PP&E 12,166 13,153 15,227 18,411 18,411 24,855 25,699 25,633 25,646 25,689
Investment/Other Asset 1,969 2,955 2,843 2,043 2,043 2,183 2,323 2,463 2,603 2,743
Invst in Oper JV 1,609 1,385 1,414 1,414 1,414 1,414 1,414 1,414 1,414 1,414
Invst in Dev JV 0 0 0 300 300 660 1,020 1,380 1,440 1,440
Bridge Loan Receivable 0 0 0 0 0 142 325 477 598 695
Notes Receivable 4,915 6,616 4,984 1,362 1,362 1,162 962 762 562 362
Distribution Rights 8,834 9,355 9,216 9,046 9,046 8,797 8,518 8,240 7,964 7,688
Transaction Costs 0 0 0 241 2,241 2,015 1,789 1,563 1,337 1,111
Goodwill 0 0 0 0 33,095 32,268 31,440 30,613 29,768 28,958
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Assets $57,679 $56,607 $74,741 $64,234 $95,129 $101,879 $102,257 $102,943 $108,020 $114,479
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Current Liabilities
Accounts Payable 5,085 3,613 7,792 3,679 3,679 4,530 4,707 4,924 5,163 5,409
Accrued Expenses 3,067 3,396 4,787 2,229 2,229 3,286 3,458 3,659 3,849 4,028
Warranty Reserve 2,654 3,254 3,554 3,854 3,854 4,454 5,054 5,654 6,254 6,854
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Current Liab. 10,806 10,263 16,133 9,763 9,763 12,270 13,219 14,238 15,266 16,291
Deferred Income Taxes 500 38 0 0 0 0 0 0 0 0
ESOP Obligation: 1,277 975 429 453 453 260 0 0 0 0
Deferred Income 192 157 140 121 121 0 0 0 0 0
Existing Debt
Term Loan BBC 2,000 1,400 0 0 0 0 0 0 0 0
Senior Notes 0 0 8,000 8,000 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt(IN) 0 0 1,451 1,451 1,451 1,413 1,373 1,330 1,284 1,238
LTD (Kelly Spring) 440 5,600 5,000 4,400 4,400 3,200 2,000 800 0 0
Other Senior Debt 7,324 6,686 3,664 3,019 3,019 186 140 114 92 70
AT&T LTD 0 0 754 1,795 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 950 0 6,208 734 734 7,170 4,236 14 0 0
Acquisition Financing
Senior Debt 0 0 0 0 27,770 27,770 27,770 27,770 27,770 27,770
Sub Debt 0 0 0 0 0 0 0 0 0 0
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Debt 10,714 13,686 25,077 19,399 47,169 50,054 46,601 41,855 40,553 40,070
Total Liabilities 23,489 25,119 41,779 29,736 57,506 62,584 59,819 56,092 55,818 56,362
New Common Stock 0 0 0 0 37,624 37,624 37,624 37,624 37,624 37,624
Common Stock 19,334 14,735 14,808 14,808 0 0 0 0 0 0
ESOP Obligation (1,277) (975) (429) (453) (453) (260) 0 0 0 0
Retained Earnings 16,133 17,728 18,583 20,144 453 1,931 4,814 9,227 14,577 20,493
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Total Equity 34,190 31,488 32,962 34,499 37,624 39,295 42,438 46,851 52,201 58,117
Total Liab.& Equity $57,679 $56,607 $74,741 $64,234 $95,129 $101,879 $102,257 $102,943 $108,020 $114,479
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
-------- -------- -------- -------- -------- -------- -------- -------- -------- --------
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Projected
CASH FLOW STATEMENT ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended _____________________________________________________
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Cash Flow From Operations
Net income $1,561 $1,478 $2,883 $4,413 $5,350 $5,916
Depreciation 794 1,889 1,953 1,948 1,949 1,952
Amortization 199 1,434 1,413 1,363 1,362 1,362
Increase Deferred Income/Taxes (19) (121) 0 0 0 0
________ ______ ______ _____ ______ _______
Total Cash Flow From Operations 2,535 4,680 6,249 7,724 8,661 9,230
Changes in Working Capital
Accounts Receivable 1,463 (507) (464) (546) (516) (488)
Inventories 6,172 (269) 469 (696) (764) (787)
Deferred Income Taxes (476) (389) (389) (389) (389) (389)
Other Current Assets 976 0 0 0 0 0
Accounts Payable (4,113) 850 177 218 239 246
Accrued Expenses (2,558) 1,057 172 201 189 180
Warranty Reserve 300 600 600 600 600 600
________ ______ ______ _____ ______ _______
Total Changes In Working Capital 1,764 1,341 565 (613) (642) (638)
Cash (Used For) Generated By Investments
Capital Expenditures (1,320) (11,519) (1,813) (884) (955) (955)
Proceeds From Sale Of Properties 0 4,493 0 0 0 0
Investment in Oper JV 0 0 0 0 0 0
Investment in Dev JV (300) (360) (360) (360) (60) 0
Investment In Conversions 0 0 0 0 0 0
Real Estate Retained (1,324) (685) (1,015) (1,009) (1,006) (1,040)
Real Estate CIP (1,335) (621) 31 11 (0) (0)
Bridge Loan 0 (142) (182) (152) (121) (96)
Total Investments (4,278) (8,835) (3,339) (2,394) (2,143) (2,091)
________ ______ ______ _____ ______ _______
Changes in Other Assets
Investments/Other Assets 800 (140) (140) (140) (140) (140)
Notes Receivable 3,622 200 200 200 200 200
Distribution Rights 170 249 279 278 276 276
Note Pay Fees Expenses (241) 26 26 26 26 26
Less: Amortization (199) (407) (386) (336) (335) (335)
________ ______ ______ _____ ______ _______
Total Other 4,152 (72) (21) 28 27 27
Net From Operations 4,172 (2,885) 3,454 4,746 5,904 6,527
Cash Flow From Financing Activities
Existing Debt (5,678) 2,885 (3,454) (4,746) (1,302) (482)
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
Net cash used in financing activities (5,678) 2,885 (3,454) (4,746) (1,302) (482)
Net Increase (Decrease) in Cash (1,506) 0 (0) 0 4,602 6,045
Cash, Beginning of Period 5,706 0 0 0 (0) 4,602
Cash Generated (Used) (1,506) 0 0 (0) 4,602 6,045
________ ______ ______ _____ ______ _______
Cash, End of Period $4,200 $0 ($0) ($0) 4,602 $10,647
Min Cash Balance 1994 $4,200
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
Projected
DEBT SCHEDULE ---------------------------------------------------------
(In thousands)
6 Months Year Ended December, 31,
Ended -----------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
________ ______ ______ _____ ______ _______
<S> <C> <C> <C> <C> <C> <C>
Beginning Debt Balance
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 8,000 6,857
Long Term Debt (IN) 1,451 1,451 1,413 1,373 1,330 1,284
Long Term Debt
(Kelly Springfield) 5,000 4,400 3,200 2,000 800 0
Other Senior Debt 3,664 3,019 186 140 114 92
AT&T LTD 754 1,795 2,315 3,082 3,826 4,550
LOC-BBC 6,208 734 7,170 4,236 14 0
Acquisition Financing
Senior Debt 0 27,770 27,770 27,770 27,770 27,770
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Beginning Debt Balance 25,077 47,169 50,054 46,601 41,855 40,553
Debt (Repayment Borrowings)
Existing Debt
Senior Notes 0 0 0 0 (1,143) (1,143)
Long Term Debt (IN) 0 (38) (40) (43) (46) (46)
Long Term Debt
(Kelly Springfield) (600) (1,200) (1,200) (1,200) (800) 0
Other Senior Debt (645) (2,833) (46) (26) (22) (22)
AT&T LTD 1,041 520 767 744 723 729
LOC-BBC (5,474) 6,436 (2,934) (4,222) (14) 0
______ ______ ______ ______ ______ ______
Total Existing Debt Borrowing (Repayment) (5,678) 2,885 (3,454) (4,746) (1,302) (482)
Acquisition Financing
Senior Debt 0 0 0 0 0 0
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Borrowing (Repayment) (5,678) 2,885 (3,454) (4,746) (1,302) (482)
Ending Debt Balances
Existing Debt
Senior Notes 8,000 8,000 8,000 8,000 6,857 5,714
Long Term Debt (IN) 1,451 1,413 1,373 1,330 1,284 1,238
Long Term Debt
(Kelly Springfield) 4,400 3,200 2,000 800 0 0
Other Senior Debt 3,019 186 140 114 92 70
AT&T LTD 1,795 2,315 3,082 3,826 4,550 5,278
LOC-BBC 734 7,170 4,236 14 0 0
Acquisition Financing 0 0 0 0 0 0
Senior Debt 0 27,770 27,770 27,770 27,770 27,770
Sub Debt 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Ending Debt Balance 19,399 50,054 46,601 41,855 40,553 40,070
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
<CAPTION>
PROJECTED
INTEREST EXPENSE SCHEDULE ---------------------------------------------------------
6 Months Year Ended December, 31,
Ended -------------------------------------------------------
12/31/94 1995 1996 1997 1998 1999
--------- -------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest Expense
Existing Debt Rate
Senior Notes 8.71% 348 697 697 697 647 547
Long Term Debt (IN) 7.75% 56 111 108 105 101 98
Long Term Debt
(Kelly Springfield) 5.75% 135 219 150 81 23 0
Other Senior Debt 9.60% 160 154 16 12 10 8
AT&T LTD 10.00% 64 206 270 345 419 419
Prepayment Penalties --- 112 0 0 0 0 0
LOC-BBC 8.25% 143 326 470 175 1 0
______ ______ ______ ______ ______ ______
Total Existing Debt Interest Expense 1,019 1,712 1,710 1,415 1,201 1,144
Acquisition Financing
Senior Debt 9.0% 0 2,499 2,499 2,499 2,499 2,499
Sub Debt 13.0% 0 0 0 0 0 0
______ ______ ______ ______ ______ ______
Total Interest Expense $1,019 $4,211 $4,210 $3,914 $3,700 $3,644
Income on Cash 3.00% 74 63 0 (0) 69 229
Income on Bridge Notes Rec 0.00% 0 0 0 0 0 0
Income on Notes Rec 9.00% 143 114 96 78 60 42
________ ______ ______ _____ ______ _______
$217 $177 $96 $78 $129 $270
</TABLE>
<PAGE>
MODERATE CASE - SNOW LEVERAGED BUYOUT SCENARIO
<TABLE>
EQUITY 1--INVESTORS RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
(S) <C> <C> <C> <C> <C> <C> <C> <C>
15.0% 6.0x 100% ($37,624) ---- ---- ---- ----- 75,688
19.9% 7.0x 100% ($37,624) ---- ---- ---- ----- 93,206
24.1% 8.0x 100% ($37,624) ---- ---- ---- ----- 110,725
EQUITY 2--MANAGEMENT RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
####### 6.0x NMF 0 ---- ---- ---- ----- #VALUE!
####### 7.0x NMF 0 ---- ---- ---- ----- #VALUE!
####### 8.0x NMF 0 ---- ---- ---- ----- #VALUE!
SUB DEBT INVESTOR RETURN
CASH FLOW
----------------------------------------------------------------------------------------
Exit Multiple Ownership% OUT FLOW PERIOD 1 PERIOD 2 PERIOD 3 PERIOD 4 PERIOD 5
IRR
#NUM! 6.0x 0% 0 ----- ----- ----- ----- ------
#NUM! 7.0x 0% 0 ----- ----- ----- ----- ------
#NUM! 8.0x 0% 0 ----- ----- ----- ----- ------
</TABLE>
<PAGE>
PART V
COMPARABLE COMPANY ANALYSIS
<PAGE>
SUMMARY ANALYSIS OF COMPARABLE COMPANIES
<TABLE>
<CAPTION>
Cooper Tire &
($ in millions, except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
______________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
PRICE & CAPITALIZATION DATA
Latest Price per Share (9/8/94) $15.75 $33.50 $25.63 $1.19 $10.13
Market Value of Common Equity $51.4 $73.4 $2,142.9 $1.7 $283.6
Total Preferred Equity
Total Debt 25.1 31.6 43.7 4.6 40.3
Other Long-Term Liabilities 0.6 4.5 185.3 0.3 0.3
Less: Cash & Equivalents (5.7) (0.7) (28.7) (0.1)
________________________________________________________________________
TOTAL VALUE $71.4 $108.8 $2,343.2 $6.6 $324.2
_____________________________________________________________________________________________________________________________
VALUATION DATA
Total Value/LTM Revenues 0.6 x 0.4 x 1.8x 0.3 x 0.6 x 0.8x 0.5x
Total Value/LTM EBITDA 9.3 14.7 10.3 NMF 9.4 11.5 10.3
Total Value/3-yr Avg. EBITDA 9.9 NMF 12.0 7.0 9.3 9.4 9.3
Total Value/LTM EBIT 11.8 17.6 13.3 14.1 10.6 13.9 13.7
Total Value/Total Capitalization 1.2 1.3 2.8 0.8 2.0 1.7 1.7
Total Value/Total Assets 1.0 0.9 2.4 0.7 1.7 1.4 1.3
Price/LTM EPS 19.8 x 17.9 x 20.0 x 26.1 x 14.7 x 19.7x 19.0x
Price/Projected Est. 1 EPS 18.5 NA 17.8 NA 12.7 15.2 15.2
Price/Projected Est. 2 EPS NA NA 15.3 NA 11.1 13.2 13.2
Equity Value/LTM Cash Flow 9.9 13.6 12.2 3.1 12.1 10.2 12.1
Equity Value/Book Value 1.7 1.5 3.4 0.6 2.4 2.0 1.9
_____________________________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Jun-1994 Jun-1994 Jun-1994 Jun-1994 Jun-1994
Total Revenues $121.6 $243.7 $1,280.3 $19.0 $555.3
EBIT 6.1 6.2 176.1 0.5 30.5
EBITDA 7.7 7.4 226.6 0.8 34.6
Net Income 2.7 4.2 107.0 0.1 19.5
Cash Flow 5.0 5.1 168.5 0.5 23.5
EBIT Margin 5.0% 2.5% 13.8% 2.5% 5.5% 6.1% 4.0%
EBITDA Margin 6.3 3.0 17.7 4.3 6.2 7.8 5.3
Return on Avg. Net Capitalization 11.7 7.6 23.2 6.0 18.3 13.8 12.9%
Net Income Margin 2.2 1.7 8.4 0.3 3.5 3.5 2.6
Return on Avg. Common Equity 8.5 9.3 19.3 2.2 17.1 12.0 13.2
Cash Flow/Total Assets 6.8 4.0 17.6 5.4 12.4 9.9 8.9
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cooper Tire &
($ in millions, except share data) Big O Tires Inc Brad Ragan, Inc. Rubber Co. S & M Co TBC Corp.
______________________________________________________________________________________________________________________________
BALANCE SHEET DATA
<S> <C> <C> <C> <C> <C>
Total Assets $74.7 $125.8 $959.5 $9.9 $189.7
Total Capitalization 58.6 83.0 848.5 7.9 161.0
Common Equity 33.0 46.9 595.4 3.0 120.4
Debt/Total Capitalization 42.8% 38.1% 5.2% 58.6% 25.0%
Shares Outstanding 3.3 2.2 83.6 1.4 28.0
_____________________________________________________________________________________________________________________________
PERFORMANCE VARIABLES
3-YEAR GROWTH RATES
Total Revenues 3.9% 8.1% 9.2% 0.8% 6.7%
EBITDA 2.1 NMF 15.0 (9.0) 11.9
Net Income 13.4 NMF 13.4 (34.0) 10.0
Cash Flow (1.8) NMF 16.6 (6.4) 15.2
Total Assets (0.4) 3.9 15.2 0.4 11.0
3-YEAR AVERAGES
EBITDA Margin 6.0% 1.2% 17.3% 5.0% 6.4%
Net Income Margin 2.0 (0.1) 8.6 0.8 3.7
</TABLE>
<PAGE>
SUMMARY ANALYSIS OF COMPARABLE COMPANIES
<TABLE>
<CAPTION>
Discount Auto Hi-Lo O Reilly
($ in millions, except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
____________________________________________________________________________________________________________________________________
PRICE & CAPITALIZATION DATA
<S> <C> <C> <C> <C> <C>
Latest Price per Share (9/8/94) $15.75 $25.00 $21.75 $10.88 $24.25
Market Value of Common Equity $51.4 $3,625.3 $302.4 $116.4 $210.0
Total Preferred Equity
Total Debt 25.1 4.3 66.5 33.7 1.0
Other Long-Term Liabilities 0.6 10.6 4.1 0.6
Less: Cash & Equivalents (5.7) (73.6) (8.3) (1.0) (7.2)
TOTAL VALUE $71.4 $3,566.6 $360.6 $153.1 $204.4
_________________________________________________________________________________________
VALUATION DATA MEAN MEDIAN
<C> <C>
Total Value/LTM Revenues 0.6 x 2.5 x 1.8 x 0.7 x 1.3 x 1.6x 1.6x
Total Value/LTM EBITDA 9.3 17.7 12.1 7.8 12.2 12.5 12.2
Total Value/3-yr Avg. EBITDA 9.9 NMF 17.3 7.8 16.0 13.7 16.0
Total Value/LTM EBIT 11.8 20.7 14.5 10.8 14.6 15.2 14.6
Total Value/Total Capitalization 1.2 7.2 2.3 1.0 3.1 3.4 2.7
Total Value/Total Assets 1.0 4.2 2.0 0.9 2.5 2.4 2.3
Price/LTM EPS 19.8 x 19.2 x 22.2 x 14.5 x 22.9 x 19.7x 20.7x
Price/Projected Est. 1 EPS 18.5 30.9 19.2 12.4 20.2 20.7 19.7
Price/Projected Est. 2 EPS NA 25.1 15.4 10.6 16.7 17.0 16.1
Equity Value/LTM Cash Flow 9.9 25.9 18.0 9.3 19.4 18.1 18.7
Equity Value/Book Value 1.7 6.9 3.2 1.2 3.4 3.7 3.3
________________________________________________________________________________________________________
OPERATING DATA FOR LTM ENDING Jun-1994 May-1994 Feb-1994 Jun-1994 Jun-1994
Total Revenues $121.6 $1,423.4 $198.2 $221.7 $153.2
EBIT 6.1 172.4 24.8 14.1 14.0
EBITDA 7.7 201.2 29.7 19.6 16.8
Net Income 2.7 105.1 11.9 7.9 9.1
Cash Flow 5.0 127.2 16.7 13.4 11.3
EBIT Margin 5.0% 12.1% 12.5% 6.4% 9.1% 10.0% 10.6%
EBITDA Margin 6.3 14.1 15.0 8.9 10.9 12.2 12.5
Return on Avg. NEt Capitalization 11.7 48.8 19.4 10.8 29.3 27.1 24.3
Net Income Margin 2.2 7.4 6.0 3.6 6.0 5.7 6.0
Return on Avg. Common Equity 8.5 25.1 13.8 7.7 15.5 15.5 14.6
Cash Flow/Total Assets 6.8 15.0 9.2 7.8 14.0 11.5 11.6
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Discount Auto Hi-Lo O Reilly
($ in millions, except share data) Big O Tires Inc Autozone Inc PTS Inc Automotive Inc Automotive Inc
____________________________________________________________________________________________________________________________________
BALANCE SHEET DATA
<S> <C> <C> <C> <C> <C>
Total Assets $74.7 $845.9 $181.0 $172.9 $80.9
Total Capitalization 58.6 496.3 159.9 148.4 65.7
Common Equity 33.0 478.5 93.4 106.5 64.1
Debt/Total Capitalization 42.8% 0.9% 41.6% 22.7% 1.6%
Shares Outstanding 3.3 145.0 13.9 10.7 8.7
PERFORMANCE VARIABLES
3-YEAR GROWTH RATES
Total Revenues 3.9% 22.0% 27.5% 14.8% 20.2%
EBITDA 2.1 34.7 29.2 (6.3) 19.3
Net Income 13.4 40.3 46.2 (1.4) 22.9
Cash Flow (1.8) 42.7 36.3 (1.5) 22.6
Total Assets (0.4) 32.2 25.8 12.3 21.5
3-YEAR AVERAGES
EBITDA Margin 6.0% 12.0% 14.6% 11.0% 11.2%
Net Income Margin 2.0 6.3 5.8 4.1 5.8
</TABLE>
<PAGE>
PART VI
WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS
<PAGE>
PROJECT SNOW
CALCULATION OF WEIGHTED AVERAGE COST OF CAPITAL
COST OF EQUITY k(e)
CAPITAL ASSET PRICING MODEL (CAPM): k(e)=R(f) + B x [R(m)-R(f)]
k(e) = Cost of Equity
R(f) = Risk Free Rate
Yield on Five Year U.S. Treasuries as of September 8, 1994
[R(m) - R(f) Equity Risk Premium
Arithmetic mean of common stock total returns minus long-term government
bond total returns for the period 1926-1993 as reported in Obbotson Associates'
Stocks, Bonds, Bills and Inflation 1994 Yearbook
B = Beta
Level of Systematic Risk Associated with the Company's Stock
LEVERING/UNLEVERING BETA: B(1) = B(u) x (1 + D/(D+E))
B(u) = B(1)/(1 + (D/(D+E))
B(1) = Levered Beta
B(u) = Unlevered Beta
D/E = Market Debt/Equity Ratio
WEIGHTED AVERAGE COST OF CAPITAL: WACC = [D/TCX[k(d)x(1-t)] + [E/TCxk(e)]
k(e) = Cost of Equity
k(d) = Pre-Tax Cost of Debt
D/TC = Debt/(Debt + Equity)
E/TC = Equity/(Debt + Equity)
t = Marginal Tax Rate
ASSUMPTIONS: LOW
Risk Free Rate(1) 6.90%
R(m) - R(f)(2) 7.60%
Pre-Tax Cost of Debt 8.50%
Marginal Tax Rate 40.00%
Debt/(Debt+Eq. MV) 42.80%
BETA CALCULATIONS: LOW
Unlevered Beta 0.82
Levered Beta(1) 1.16
COST OF EQUITY: LOW
Cost of Equity/k(e) 15.75%
BETA CALCULATION:
After-Tax Cost of Debt 5.10%
Equity/(Debt + Equity) 57.20%
Debt/(Debt + Equity) 42.80%
WACC 11.19%
(1) Source: Bloomberg
(2) Source: Ibbotson Associates
<PAGE>
PROJECT SNOW
BETA ANALYSIS
<TABLE>
<CAPTION>
DEBT/
REPORTED BETAS DEBT + MKT. UNLEVERED
______________
COMPANY BLOOMBERG VALUE LINE AVERAGE VALUE OF EQUITY BETA
- ------- --------- ---------- ------- --------------- -----
<S> <C> <C> <C> <C> <C>
Brad Ragan Inc. -- -- 0.0% --
Cooper Tire & Rubber 1.11 -- 1.11 5.2% 1.06
S & M Company -- -- 0.0% --
TBC Corp. 1.06 -- 1.06 25.0% 0.85
Autozone Inc. 1.30 -- 1.30 0.9% 1.29
Discount Auto Parts Inc. 1.30 -- -- 41.6% 0.92
Hi-Lo Automotive 1.05 -- 1.05 22.7% 0.86
O'Reilly Automotive Inc. -- -- 0.0% --
Mean 1.16 -- 1.16 0.99
High 1.30 -- 1.30 1.29
Low 1.05 -- 1.05 0.85
Median 1.11 -- 1.11 0.92
</TABLE>
<PAGE>
(99.2) Exhibit B to Schedule 13D
Dated November 9, 1995.
DRAFT OF NOVEMBER 7, 1995
STOCK PURCHASE AGREEMENT
______________, 1995
<PAGE>
TABLE OF CONTENTS
1. PURCHASE AND SALE OF BALBOA SHARES. 2
1.1 Agreement to Purchase and Sell 2
1.2 Closing 2
1.3 Purchase Price 2
1.4 Reimbursement For Expenses 3
2. REPRESENTATIONS AND WARRANTIES OF SELLER 3
2.1 Organization/Good Standing 3
2.2 Authority 3
2.3 Binding Obligation of Seller 3
2.4 Title to the Balboa Shares 3
2.5 Expense Reimbursement Schedule 4
2.7 Compliance 4
2.8 Subsidiaries 4
2.9 Brokers and Finders 4
2.10 Proxy Statement/Schedule 13(D) 4
2.11 Permits 5
2.12 Litigation 5
2.13 Accuracy of Information 5
2.14 Investment Intent 5
2.15 Reliance Upon Seller's Representations6
2.16 Receipt of Information 6
2.17 Restricted Securities 6
2.18 Investment Experience 6
2.19 Accredited Investor 7
2.20 Legend on Note 8
3. REPRESENTATIONS AND WARRANTIES OF PURCHASER 8
3.1 Organization/Good Standing 8
3.2 Authority 8
3.3 Binding Obligation of Purchaser 8
3.4 Compliance 9
3.5 Subsidiaries 9
3.6 Brokers and Finders 9
3.7 Proxy Statement/Schedule 13(D) 9
3.8 Permits 10
3.9 Litigation 10
3.10 Accuracy of Information 10
4. COVENANTS OF SELLER 10
4.1 Negative Covenants 10
4.2 Compliance, Consents and Approvals 11
4.3 Negotiations 11
5. COVENANTS OF PURCHASER 11
5.1 Negative Covenants 11
5.2 Compliance, Consents and Approvals 11
<PAGE>
6. CONFIDENTIALITY 12
7. CONDITIONS OF CLOSE WITH RESPECT TO SELLER 12
7.1 Representations, Warranties and
Covenants of Purchaser 12
7.2 Obligations and Conditions of
Purchaser 12
7.3 Consents and Approvals/Qualifications 12
7.4 No Violation of Orders, Etc. 12
7.5 Purchase Price 13
7.6 Certificate of Good Standing 13
8. CONDITIONS OF CLOSE WITH RESPECT TO
PURCHASER 13
8.1 Representations, Warranties and
Covenants of Seller 13
8.2 Obligations and Conditions of Seller 13
8.3 Consents and Approvals/Qualifications 13
8.4 Proceedings and Documents 13
8.5 No Violation of Orders, Etc. 13
8.6 Consummation of Plan of Merger 14
8.7 Elements of Financing 14
8.8 Dealer Participation 14
8.9 Approval of Big O ESOP 14
8.10 Certificate of Good Standing 14
8.11 Approval by Board of Directors
of Company 14
8.12 Shareholder Approval 15
9. INDEMNIFICATION 15
9.1 Indemnification By Seller 15
9.2 Indemnification By Purchaser 15
9.3 Notice of Asserted Liability 15
9.4 Survival 16
10. MISCELLANEOUS PROVISIONS 16
10.1 Survival of Representations,
Covenants and Warranties 16
10.2 Successors and Assigns 16
10.3 Governing Law 16
10.4 Counterparts 16
10.5 Expenses 16
10.6 Notices 16
10.7 Entire Agreement 17
10.8 Waivers, Amendments and Remedies 17
10.9 Severability 17
10.10 Headings/Recitals/Exhibits 17
10.11 Knowledge 17
10.12 Necessary Action 18
10.13 Time 18
10.14 Attorneys' Fees 18
10.15 California Corporate Securities Laws18
<PAGE>
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE AGREEMENT ("Agreement") is made as of
__________, 1995,
between BALBOA INVESTMENT GROUP, L.P., a California limited
- 2 -
partnership
("Seller"), KENNETH W. PAVIA, SR., its general partner ("Balboa
General
Partner") and Big O Tire Dealers, L.P., a California limited
partnership to be
formed ("Purchaser").
RECITALS
A. Seller owns and holds three hundred nine
thousand five hundred
(309,500) shares of common stock (the "Balboa Shares") of the Big
O Tires, Inc.,
a Nevada corporation ("Company"), par value ten cents ($.10) per
share, which
Balboa Shares represent approximately nine and two tenths percent
(9.2%) of all
the issued and outstanding shares of common stock of Company.
B. Purchaser has elected to participate in the possible
acquisition of
Company by and through an entity whose principals may (subject to
certain
conditions precedent, as shall hereinafter be set forth) be
comprised of certain
members of the Company's current senior management ("Big O
Management"), certain
participants in the Company's employee stock ownership plan ("Big
O ESOP"), and
Purchaser (collectively, the "Holding Company"). Purchaser is
required to make
an equity contribution to the Holding Company in exchange for the
issuance of
stock of the Holding Company. In order to make such equity
contribution
Purchaser is intending to borrow funds from various sources
("Equity
Financing"), including acquiring shares of Company Stock by way
of giving a
secured promissory note to certain existing shareholders of the
Company and
rolling over such shares into the Holding Company. In connection
with the
foregoing, Purchaser desires, upon the occurrence, fulfillment
and satisfaction
of certain conditions precedent as shall hereinafter be set
forth, to purchase
and acquire the Balboa Shares. The Holding Company has entered
into an
Agreement and Plan of Merger with the Company, a copy of which is
attached
hereto as EXHIBIT A (the "Merger Agreement").
C. Each limited partner of Purchaser that owns one or
more duly
franchised Big O Tire Retail Stores (individually, a "Dealer,"
collectively,
"Dealers") is required to execute a purchase commitment agreement
with Company
whereby each such Dealer agrees to purchase a minimum number of
tire units from
Company for a six and one quarter (6.25) year period commencing
as of the date
of the consummation of the Merger pursuant to the Merger
- 3 -
Agreement (the
"Purchase Commitment"). In connection therewith, during the term
of the
Purchase Commitment, each such Dealer is required to make a
mandatory additional
capital contribution to purchase equal to One Dollar ($1.00) for
each tire unit
purchased from Company (the "Tire Contribution").
D. Subject to the terms an conditions as shall
hereinafter be set
forth, Seller is willing to transfer and convey the Balboa Shares
to Purchaser.
NOW, THEREFORE, the parties hereto hereby agree as follows:
AGREEMENT
1. PURCHASE AND SALE OF BALBOA SHARES.
1.1 Agreement to Purchase and Sell. On the "Closing
Date" (as defined
in SECTION 1.2 below), and upon the terms and subject to each and
every
condition precedent set forth in this Agreement, Seller shall
sell, assign,
transfer, convey and deliver the Balboa Shares to Purchaser or
its designee and
Purchaser shall purchase, acquire and accept the Balboa Shares
from Seller.
1.2 Closing. Seller and Purchaser intend that the
"Closing Date" of
the purchase and sale of the Balboa Shares shall take place at
the Offices of
Gibson, Dunn & Crutcher, 1801 California Street, Suite 4200,
Denver, Colorado,
80202, on the date upon which the plan of merger pursuant to the
terms of the
Merger Agreement shall have been fully and completely consummated
or at such
other time, place, and date as the parties hereto shall agree in
writing
("Closing Date"). Provided further, it is expressly understood
and agreed by
Seller and Purchaser that the Closing Date shall not occur unless
and until
(1) the plan of merger pursuant to the Merger Agreement is fully
and completely
consummated and (2) each and every condition precedent set forth
in SECTIONS 7
and 8 of this Agreement shall have been satisfied and fulfilled
or waived by the
party who holds such waiver right. On the Closing Date, Seller
shall transfer
and convey to the Purchaser the Balboa Shares.
In the event the Closing Date does not occur on or before
February 28,
1996, and the parties have not otherwise agreed in writing to
extend the Closing
Date, this Agreement shall be null and void and have no further
force and
effect, except that the provisions of SECTIONS 6, 9, and 10 shall
- 4 -
survive such
termination. Provided that, to the extent any provision of this
Agreement is
required to survive for purposes of the indemnification
obligations of each
party to the other pursuant to the provisions of SECTION 9
hereof, such
provisions shall survive such termination. Provided further,
such termination
shall not relieve any party of its liability for any
misrepresentation, default
or breach of this Agreement.
1.3 Purchase Price. The Purchase Price for the Balboa
Shares
("Purchase Price") shall be the sum of
____________________________________________ Dollars ($_________)
(which
represents ________________________________________ (_______)
shares at _______
Dollars ($__) per share) which shall be paid by Purchaser to
Seller at the
Closing Date as follows:
1.3.1 Purchaser shall pay to Seller in cash or
equivalent,
the sum of _________________________________________________
Dollars
($_________) (the "Cash Portion") (which represents
________________________________________ (_______) shares times
___________
Dollars ($_____) per share) which Cash Portion shall, at the
election of
Purchaser be paid (1) as part of the "Merger Consideration" (as
such term is
defined in Section 1.5(a) of the Merger Agreement) or (2) by
Purchaser
simultaneously with the consummation of the plan of merger
pursuant to the
Merger Agreement (as specified in Section 1.3 of the Merger
Agreement).
1.3.2 The balance of the Purchase Price in the
sum of
__________________ _____________________ Dollars ($_______) along
with the
"Reimbursement" (as defined in SECTION 1.4 below) shall be paid
pursuant to the
terms of a secured promissory note in the form attached hereto as
EXHIBIT B (the
"Note"). The Note shall be fully amortized over a six (6)-year
period,
commencing immediately following the Closing Date. Interest on
the unpaid
principal shall bear interest at the rate of ______ percent (__%)
per annum, and
the Note shall be payable in seventy-two (72) equal monthly
installments over
the six (6)-year amortized term commencing on the first day of
the month
following the Closing Date and on the first day of each and every
month
thereafter during the amortized period. The Note shall be
secured by Purchaser
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granting Seller a security interest in that portion of
Purchaser's shareholding
in the Holding Company in the same ratio as the total sum of the
note bears to
the total of Purchaser's Equity Financing; and by Purchaser
assigning as
collateral that portion of the aggregate of the Dealers Purchase
Commitments in
the same ratio as the total sum of the note bears to the total of
Purchaser's
Equity Financing pursuant to the terms of the Security Pledge
Agreement in the
form attached hereto as EXHIBIT C. Purchaser will take all
necessary steps to
perfect the security interest as granted and assign as collateral
said portion
of the Purchasing Commitments.
1.4 Reimbursement For Expenses. As separate and
independent
consideration for expenses incurred by Seller in putting together
proposals for
certain shareholder actions and resolutions to the shareholders
of the Company
in 1993 and 1994 by way of proxy solicitations and related
actions, which
included proposals that the Company explore all alternatives to
enhance the
value of the Company, Purchaser hereby agrees to reimburse Seller
for such
expenses incurred by it in accordance with the schedule
("Reimbursement
Schedule") attached hereto as EXHIBIT D up to a maximum
reimbursement in the sum
of _____________________________ Dollars ($_______) (the
"Reimbursement");
provided that such obligation to reimburse Seller for such
expenses are subject
to and contingent upon and shall not be payable unless and until
the
consummation of the transaction contemplated by this Agreement
and the
consummation of the plan of merger contemplated by the Merger
Agreement. The
payment for such expenses shall be added to the Note and payable
in accordance
with the terms thereof.
2. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby
represents and
warrants to Purchaser that each and every statement contained in
this SECTION 2
is correct an complete as of the date of this Agreement and will
be correct and
complete as of the Closing Date.
2.1 Organization/Good Standing. Seller is a
California limited
partnership, duly organized, validly existing and in good
standing under the
laws of the State of California, has all requisite partnership
power to own and
operate its properties and assets and to carry on its business as
it is now
- 6 -
being conducted. Seller has the full right, power and authority
and all
partnership and related action has been taken as shall be
necessary and required
to consummate the transactions contemplated hereby.
2.2 Authority. Kenneth Pavia, Sr., as the general
partner of
Seller, has the full power, authority and capacity to sign and
deliver this
Agreement and to take all necessary action on behalf of Seller as
shall be
necessary and required to consummate the transactions
contemplated hereby.
2.3 Binding Obligation of Seller. This Agreement
constitutes the
legally binding obligation of Seller in accordance with the terms
and provisions
hereof, subject as to its enforceability to limitations imposed
by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating
to or effecting
creditors' rights, generally and to the general principals of
equity.
2.4 Title to the Balboa Shares. Seller owns and holds
the Balboa
Shares beneficially and of record, free and clear of any liens,
claims,
encumbrances or restrictions of any kind or nature whatsoever
and, upon delivery
of and payment of the Purchase Price for the Balboa Shares as
herein provided,
Seller shall convey to Purchaser valid title thereto, free and
clear of any
liens, claims, security interests, encumbrances or restrictions
of any nature or
description.
2.5 Expense Reimbursement Schedule. The Expense
Reimbursement Schedule
accurately reflects the expenses described in Section 1.4 hereof
so incurred by
Seller.
2.6 No Preemptive or Other Rights. No person has any
right of first
refusal, any preemptive or other rights and there are no rights
or restrictions
under the terms and provision of Seller's partnership agreement
or otherwise
which would prohibit, preclude or otherwise affect the sale and
transfer of the
Balboa Shares to Purchase as contemplated by the terms and
provisions of this
Agreement.
2.7 COMPLIANCE. Neither the execution and delivery of
this Agreement
by Seller nor the consummation of the transactions contemplated
hereby, nor
compliance by Seller with respect to any of the provisions hereof
will:
- 7 -
(1) violate, conflict with or result in the breach of any
provision of, or
constitute a default (or an event which with notice or lapse of
time are both
would constitute a default) under, or result in the termination
of, or
accelerate the performance by, or result in a right of
termination or
acceleration under, or result in a creation of any liens,
security interest,
charge or encumbrance upon any of the properties or assets of
Seller, under any
of the terms or provisions of (i) the partnership agreement of
Seller or
(ii) any material note, bond, mortgage, indenture, deed of trust,
license, lease
agreement, executory contract or arrangement or other instrument
or obligation
to which Seller is a party or to which it or any of its
properties or assets may
be otherwise subject or bound; or (2) subject to Seller's
obligations to take
all necessary steps to comply with the statutes or regulations
referred to in
the last sentence of this paragraph, violate any judgment,
ruling, writ,
injunction, decree, statute, rule or regulation applicable to
Seller, or any of
its respective properties or assets. Other than in connection
with Seller's
obligation to comply with the provisions of the Revised Uniform
Limited
Partnership Act of the State of California (the "RULPA"), the
Securities
Exchange Act of 1934, as amended, or any similar successor,
federal statute and
the rules and regulations thereunder, all as the same, shall be
in effect from
time-to-time ("Exchange Act"), the Securities Act of 1933, as
amended, or any
similar successor federal statute and the rules and regulations
thereunder, all
as the same shall be in effect from time-to-time ("Securities
Act"), the "take-over" or "blue sky" laws of the various states,
the Hart-Scott-Rodino Antitrust
Improvement Acts of 1976 and the rules and regulations thereunder
("Hart-Scott-Rodino Act") and any required foreign regulatory
approvals, no notice to, filing
with, or authorization, consent or approval of any domestic or
foreign public
body or authority is necessary for the consummation by Seller of
the
transactions contemplated by this Agreement.
2.8 Subsidiaries. Seller does not own or control,
directly or
indirectly, any interest in any other corporation, association,
or other
business entity. Seller is not a participant in any joint
venture, partnership,
or similar arrangement.
2.9 Brokers and Finders. Seller has not engaged any
broker, finder or
- 8 -
investment banker in connection with this Agreement or the
transactions
contemplated hereby.
2.10 Proxy Statement/Schedule 13(D). None of the
information supplied
or to be supplied by Seller or any of its agents, representatives
or affiliates
for inclusion, or included or incorporated by reference in (a)
any proxy
statements filed by Company with the Securities and Exchange
Commission (the
"Commission") or any amendment or supplement thereto, (b) any
Schedule 13(D) or
any amendment or supplement thereto filed by Seller, Purchaser,
the Holding
Company or Company, or any of its agents, representatives or
affiliates, or
(c) any other documents to be filed with the Commission, or any
other regulatory
agency in connection with the transactions contemplated hereby by
Seller,
Purchaser, the Holding Company or Company, or any of its agents,
representatives
or affiliates, will, insofar as such Schedule 13(D) and documents
relate to
Seller, its affiliates, agents and representatives, at the
respective time such
Schedule 13(D) and documents are filed, be false or misleading
with respect to
any material fact, or omit to state any material fact necessary
in order to make
the statements therein, at the time and in light of the
circumstances under
which they were made, not false or misleading. The Schedule
13(D) and any
related documents required in connection with the transactions
contemplated
hereunder, will comply as to form and all material respects with
the
requirements of law insofar as such Schedule 13(D) and documents
relate to
Seller, its affiliates, agents and representatives.
2.11 Permits. Seller has all franchises, permits,
licenses and any
similar authority necessary for the conduct of its business as
now being
conducted by it, the lack of which could materially and adversely
effect
Seller's ability to perform its obligations under this Agreement;
and believes
it can obtain, without undue burden or expense, any similar
authority. Seller
is not in default under in any material respect under any such
franchises,
permits, licenses or similar authority.
2.12 Litigation. There is no suit, action, proceeding
or investigation
pending or currently threatened against Seller or any of its
affiliates, agents
or representatives that questions the validity of this Agreement
or any
- 9 -
documents, instruments or ancillary agreements in connection
therewith, or the
right of Seller to sell and convey the Balboa Shares and enter
into such
agreements or to consummate the transactions contemplated hereby
or thereby, or
that might result, either individually or in the aggregate in any
material
adverse change in the assets, business or property, prospects or
financial
condition of Seller, or in any material change in the current
equity ownership
of Seller. Seller is not a party, or to the best of its
knowledge, named in any
order, writ, injunction, judgment, or decree of any court,
government agency or
instrumentality. There is no action, suit or proceeding by
Seller currently
pending or that Seller currently intends to initiate.
2.13 Accuracy of Information. Except to the extent of
any subsequent
correction or supplement with respect thereto prior to the date
hereof, the
written statements, certificates, schedules, lists or any other
written
information furnished by or on behalf of Seller to Purchaser in
connection with
this Agreement, when considered as a whole, do not contain and
will not contain
any untrue statement of any material fact; and do not omit or
will not omit to
state a material fact necessary in order to make the statements
herein or
therein in light of the circumstances in which they were made,
not misleading.
Each document delivered by Seller to Purchaser is a true and
complete copy of
such document, unmodified except by another document delivered to
Purchaser.
Notwithstanding the foregoing, a mere inclusion on any particular
items of
information or statement of fact and any such written information
furnished by
or on behalf of Seller in connection with this Agreement, even if
coupled with a
representation or warranty to the effect that such written
information is
inclusive of all material information or statements of fact with
respect to the
subject matter thereof, shall not, without more, give rise to any
implication or
constitute any admission that such particular items or statements
are material.
Provided, however, Seller agrees to disclose to Purchaser any
such material
facts and information with respect to the foregoing within its
knowledge.
2.14 Investment Intent. With respect to the Note being
given by
Purchaser to Seller as partial consideration for the Purchase
Price, Seller
hereby acknowledges, confirms and represents that in accepting
- 10 -
the Note as
partial consideration for payment of the Purchase Price and for
payment of the
Reimbursement, the Note is being acquired for investment for
Seller's own
account, not as a nominee or agent, and not with a view to the
resale or
distribution of any part thereof and that Seller has no present
intention of
selling, assigning, transferring, conveying or granting any
participation in or
otherwise distributing the Note. Seller further acknowledges and
confirms that
it does not have any contract, undertaking, agreement or other
arrangement with
any person to sell, transfer, assign or grant participation to
any such person
or to any third party with respect to the Note.
2.15 Reliance Upon Seller's Representations. Seller
acknowledges and
understands that the Note is not being registered under the
Securities Act on
the ground that the sale and transfer provided for in this
Agreement with
respect to the Note and the issuance of the Note hereunder is
exempt from
registration under the Securities Act pursuant to Section 4(2)
thereof and that
the Purchaser's reliance on such exemption is predicated on
Seller's
representations as set forth herein.
2.16 Receipt of Information. Seller believes that it
has received all
of the information it considers necessary or appropriate for
deciding whether to
accept the Note as partial consideration for the Purchase Price.
Seller further
represents that it has had an opportunity to ask questions,
receive answers and
information from the Purchaser regarding the business, assets and
properties,
prospects and financial condition of Purchaser and to obtain
additional
information (to the extent Purchaser possessed such information
or could acquire
it without unreasonable effort or expense) necessary to verify
the accuracy of
any information furnished to Seller or to which Seller had
access. The
foregoing, however, does not limit or modify the representations
and warranties
of Purchaser provided in SECTION 3 of this Agreement, nor the
right of Seller to
rely upon such representations and warranties.
2.17 Restricted Securities. Seller acknowledges and
understands that
in accepting the Note as partial consideration for the Purchase
Price, the Note
is characterized as "Restricted Securities" under applicable
Federal securities
laws, inasmuch as it is being acquired from Purchaser in a
- 11 -
transaction not
involving a public offering and that under such laws and
applicable regulations,
such securities may be sold without registration under the
Securities Act, only
in limited circumstances. In this connection, Seller represents
that it is
familiar with Securities Exchange Commission Rule 144, as
promulgated by the
Commission under the Securities Act as such Rule 144 may be
amended from time to
time or any similar successor rule that may be promulgated by the
Commission,
and understands the resale limitations imposed thereby and by the
Securities
Act.
2.18 Investment Experience. Seller represents that it
is experienced
in evaluating and investing in securities of companies and
acknowledges that it
is able to fend for itself, can bear the economic risk of its
investment and has
such knowledge and experience in financial and business matters
that it is
capable of evaluating the merits and risks of the acceptance of
the Note as
partial consideration for the Purchase Price. Seller further
represents that it
has not been organized for the purpose of entering into this
transaction or
otherwise agreeing to the terms of the purchase and sale of the
Balboa Shares
pursuant to the terms, conditions and provisions of this
Agreement, without
limitation, accepting the Note as partial consideration for the
Purchase Price.
2.19 Accredited Investor.
2.19.1 The term "Accredited Investor" as defined in
Rule 501(a) of
Regulation D of the Securities Act means:
(a) a person or entity who is a general
partner, director or
executive officer and/or executive officer, director or general
partner of the
general partner of Purchaser;
(b) any bank as defined in Section 3(a)(2) of
the Securities
Act or any savings and loan association or other institution as
defined in
Section 3(a)(5)(A) of the Securities Act, whether acting in its
individual or
fiduciary capacity, any broker or dealer register pursuant to
Section 15 of the
Exchange Act; any insurance company as defined in Section 2(13)
of the
Securities Act; any investment company registered under the
Investment Company
Act of 1940 or a business development company as defined in
Section 2(a)(48) of
- 12 -
that Act; any Small Business Investment Company licensed by the
U.S. Small
Business Administration under Section 301(c) or (d) of the Small
Business
Investment Act of 1958, any plan established and maintained by a
state, its
political subdivisions, or any agency or instrumentality of a
state or its
political subdivisions, for the benefit of its employees, if such
plan has total
assets in excess of Five Million Dollars ($5,000,000); any
employee benefit plan
within the meaning of Title I of the Employee Retirement Income
Security Act of
1974, if the investment decision is made by a plan fiduciary, as
defined in
Section 3(21) of such Act, which is either a bank, savings and
loan association,
insurance company or registered investment advisor, or if the
employee benefit
plan has total assets in excess of Five Million Dollars
($5,000,000), or if a
self-directed plan, with investment decisions made solely by
persons that are
Accredited Investors;
(c) any private business development company
as defined in
Section 202(a)(22) of the Investment Advisors Act of 1940;
(d) any organizations described in Section
501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar
business trust or
partnership not formed for the specific purposes of acquiring the
securities
offered, with total assets in excess of Five Million Dollars
($5,000,000);
(e) any natural person who individual net
worth, or joint net
worth with that persons spouse at the time of its purchase
exceeds One Million
Dollars ($1,000,000);
(f) any natural person who had an individual
income in excess
of Two Hundred Thousand Dollars ($200,000) in each of the two
most recent years
or joint income with that person's spouse in excess of Three
Hundred Thousand
Dollars ($300,000) in each of those years and has a reasonable
expectation of
reaching the same income level in the current year;
(g) any trust with total assets in excess of
Five Million
Dollars ($5,000,000), not formed for the specific purposes of
acquiring the
securities offered, whose purchase is directed by a person who
has such
knowledge and experience in such financial and business matters,
that he/she is
capable of evaluating the merits and risks of the prospective
- 13 -
investment; or
(h) any entity in which all the equity owners
are Accredited
Investors.
As used in SECTION 2.18.1, the term "net worth" means
the excess of
total assets over total liabilities. For the purpose of
determining the
person's net worth, the principal residence owned by an
individual should be
valued at the fair market value, including the costs of
improvements, net of
current encumbrances. As used in this SECTION 2.18.1, "income"
means actual
economic income, which may differ from adjusted gross income for
income tax
purposes. Accordingly, Seller should consider whether it should
add any or all
of the following items to its adjusted gross income for income
tax purposes in
order to reflect more accurately its actual economic income: any
amounts
attributable to tax exempt income received, losses claimed as a
limited partner
in any limited partnership, deductions claimed for depletion,
contributions to
an IRA or Keogh Retirement Plan and alimony payments.
2.19.2 Seller further represents to Purchaser that
it is an
Accredited Investor.
2.20 Legend on Note. It is acknowledged, understood and
agreed that
the Note shall bear the following legends.
(a) "THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH
ACT, OR UNLESS
PURCHASER HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE,
SATISFACTORY TO
PURCHASER AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED, OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT"; and
(b) Any legend required by the laws of the
State of
California or any other applicable state laws.
3. REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser
hereby represents
and warrants to Seller that each and every statement contained in
this SECTION 3
is correct and complete as of the date of this Agreement and will
be correct and
complete as of the Closing Date.
3.1 Organization/Good Standing. Purchaser is a
California limited
- 14 -
partnership, duly organized, validly existing and in good
standing under the
laws of the State of California, has all requisite partnership
power to own and
operate its properties and assets and to carry on its business as
it is now
being conducted. Purchaser has the full power and authority and
all partnership
and related action has been taken as shall be necessary and
required to
consummate the transaction contemplated hereby.
3.2 Authority. Big O Tire Dealers of America, a
California
nonprofit mutual benefit corporation, as the general partner of
Purchaser, has
the full power, authority and capacity to sign and deliver this
Agreement and to
otherwise take all action on behalf of Purchaser as necessary and
required to
consummate the transactions contemplated hereby.
3.3 Binding Obligation of Purchaser. This Agreement
constitutes the
legally binding obligation of Purchaser in accordance with the
terms and
provisions hereof, subject as to its enforceability to
limitations imposed by
bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to
or effecting creditors' rights, generally and to the general
principals of
equity.
3.4 Compliance. Neither the execution and delivery of
this Agreement
by Purchaser nor the consummation of the transactions
contemplated hereby, nor
compliance by Purchaser with respect to any of the provisions
hereof will:
(1) violate, conflict with or result in the breach of any
provision of, or
constitute a default (or an event which with notice or lapse of
time are both
would constitute a default) under, or result in the termination
of, or
accelerate the performance by, or result in a right of
termination or
acceleration under, or result in a creation of any liens,
security interest,
charge or encumbrance upon any of the properties or assets of
Purchaser, under
any of the terms or provisions of (i) the partnership agreement
of Purchaser or
(ii) any material note, bond, mortgage, indenture, deed of trust,
license, lease
agreement, executory contract or arrangement or other instrument
or obligation
to which Purchaser is a party or to which it or any of its
properties or assets
may be otherwise subject or bound; or (2) subject to Purchaser's
obligation to
take all necessary steps to comply with the statutes or
regulations referred to
- 15 -
in the last sentence of this paragraph, violate any judgment,
ruling, writ,
injunction, decree, statute, rule or regulation applicable to
Purchaser, or any
of its respective properties or assets. Other than in connection
with
Purchaser's obligation to comply with the provisions of the
RULPA, the Exchange
Act, the Securities Act, the "take-over" or "blue sky" laws of
the various
states, the Hart-Scott-Rodino Act and any required foreign
regulatory approvals,
no notice to, filing with, or authorization, consent or approval
of any domestic
or foreign public body or authority is necessary for the
consummation by
Purchaser of the transactions contemplated by this Agreement.
3.5 Subsidiaries. Purchaser does not own or control,
directly or
indirectly, any interest in any other corporation, association,
or other
business entity; except that some or all of the limited partners
of Purchaser
are members of the general partner of Purchaser which is a trade
organization
comprised of duly franchised retail Big O Tire Store Dealers and
formed for the
purpose of protecting and advancing their common business
interests on a united
basis. Purchaser is not a participant in any joint venture,
partnership, or
similar arrangement.
3.6 Brokers and Finders. Purchaser has not engaged any
broker, finder
or investment banker in connection with this Agreement or the
transactions
contemplated hereby, except for the engagement of KPMG Peat
Marwick LLP ("KPMG")
pursuant to those certain letter agreements dated October 18, and
19, 1994, and
May 11, 1995.
3.7 Proxy Statement/Schedule 13(D). None of the
information supplied
or to be supplied by Purchaser or any of its agents,
representatives or
affiliates for inclusion, or included or incorporated by
reference in (a) any
(if required) proxy statements filed by the Company with the
Commission or any
amendment or supplement thereto, (b) any Schedule 13(D) or any
amendment or
supplement thereto by Purchaser, Seller, the Holding Company or
the Company, or
any of its agents, representatives or affiliates, or (c) any
other documents to
be filed with the Commission, or any other regulatory agency in
connection with
the transactions contemplated hereby by Seller, Purchaser, the
Holding Company
or the Company, will, insofar as such Schedule 13(D) and
documents relate to
- 16 -
Purchaser, its affiliates agents and representatives, at the
respective time
such Schedule 13(D) and documents are filed, be false or
misleading with respect
to any material fact, or omit to state any material fact
necessary in order to
make the statements therein, at the time and in light of the
circumstances under
which they were made, not false or misleading. The Schedule
13(D) and any
related documents required in connection with the transactions
contemplated
hereunder, will comply as to form and all material respects with
the
requirements of law insofar as such Schedule 13(D) and documents
relate to
Purchaser, its affiliates, agents and representatives.
3.8 Permits. Purchaser has all franchises, permits,
licenses and any
similar authority necessary for the conduct of its business as
now being
conducted by it, lack of which could materially and adversely
effect Purchaser's
ability to perform its obligations under this Agreement and
believes it can, if
required in order to perform its obligations hereunder, obtain,
without undue
burden or expense, any similar authority. Purchaser is not in
default under in
any material respect under any such franchises, permits, licenses
or similar
authority.
3.9 Litigation. There is no suit, action, proceeding or
investigation
pending or currently threatened against Purchaser or any of its
affiliates,
agents or representatives that questions the validity of this
Agreement or any
documents, instruments or ancillary agreements in connection
therewith, or the
right of Purchaser to enter into such agreements or to consummate
the
transactions contemplated hereby or thereby, or that might
result, either
individually or in the aggregate in any material adverse change
in the assets,
business or properties, prospects or financial condition of
Purchaser, or in any
material change in the current equity ownership of Purchaser.
Purchaser is not
a party, or to the best of its knowledge, named in any order,
writ, injunction,
judgment, or decree of any court, government agency or
instrumentality. There
is no action, suit or proceeding by Purchaser currently pending
or that
Purchaser currently intends to initiate.
3.10 Accuracy of Information. Except to the extent of
any subsequent
correction or supplement with respect thereto prior to the date
hereof, the
- 17 -
written statements, certificates, schedules, lists or any other
written
information furnished by or on behalf of Purchaser to Seller in
connection with
this Agreement, when considered as a whole, do not contain and
will not contain
any untrue statement of any material fact; and do not omit or
will not omit to
state a material fact necessary in order to make the statements
herein or
therein in light of the circumstances in which they were made,
not misleading.
Each document delivered by Purchaser to Seller is a true and
complete copy of
such document, unmodified except by another document delivered to
Seller.
Notwithstanding the foregoing, a mere inclusion on any particular
items of
information or statement of fact and any such written information
furnished by
or on behalf of Purchaser in connection with this Agreement, even
if coupled
with a representation or warranty to the effect that such written
information is
inclusive of all material information or statements of fact with
respect to the
subject matter thereof, shall not, without more, give rise to any
implication or
constitute any admission that such particular items or statements
are material.
Provided, however, Purchaser agrees to disclose to Seller any
such material
facts and information with respect to the foregoing within its
knowledge.
4. COVENANTS OF SELLER. Seller hereby covenants and agrees
as follows:
4.1 Negative Covenants. During the period commencing as
of the date of
this Agreement and ending on the Closing Date, except as
otherwise expressly
provided herein, Seller shall not (1) take any action to amend or
otherwise
modify its partnership agreement in a manner which would cause it
to be unable
to perform or otherwise carry out its obligations under this
Agreement; (2)
issue, grant, sell or enter into any options, warrants,
agreements, conversion
rights, rights of first refusal, preemptive rights, or other
rights to subscribe
for, purchase or otherwise acquire the Balboa Shares; (3) create
any material
lien, charge, security interest, claim or encumbrance upon any of
the Balboa
Shares; (4) deed, sell, transfer, assign, license or otherwise
dispose of any of
the Balboa Shares; or (5) otherwise take any action which would
materially
effect its ability to perform its obligations under this
Agreement.
4.2 Compliance, Consents and Approvals. Seller shall
- 18 -
(1) comply with
and obtain all necessary consents, waivers, authorizations and
approvals of all
governmental and regulatory authorities (including, without
limitation, such
compliances, consents, waivers, authorizations and approvals as
necessary or
required under the RULPA, the Exchange Act, the Securities Act,
the "take over"
or "blue sky" laws of the various states and the
Hart-Scott-Rodino Act) and of
all other persons, firms, partnerships, or corporations required
in connection
with the execution, delivery and performance by Seller of each
and every term,
condition and provision of this Agreement; and (2) diligently
assist and
cooperate with Purchaser in preparing and filing all documents
required to be
submitted by Purchaser to any governmental or regulatory
authority in connection
with such transactions (which assistance and cooperation shall
include, without
limitation, timely furnishing to Purchaser all information
concerning Seller
which, in the reasonable opinion of counsel to Purchaser, is
required to be
included into the documents) and in obtaining any governmental
and regulatory
authorities, consents, waivers, authorizations or approvals which
may be
required to be obtained by Purchaser in connection with the
transactions
contemplated by this Agreement.
4.3 Negotiations. Following the execution of this
Agreement by all
parties hereto, Seller nor any one acting on behalf of Seller,
shall, directly
or indirectly, encourage, solicit, engage in discussions or
negotiations with,
or provide any information to any person, firm, or other entity
or group (other
than Purchaser or its representatives) concerning any sale,
assignment or
transfer of the Balboa Shares or other similar transaction
involving the Balboa
Shares. Seller agrees to promptly communicate to Purchaser any
inquiries or
communications concerning any transactions which it may receive
or which it may
become aware of.
5. COVENANTS OF PURCHASER. Purchaser covenants and agrees as
follows:
5.1 Negative Covenants. During the period commencing as
of the date of
this Agreement and ending on the Closing Date, except as
otherwise expressly
provided herein, Purchaser shall (1) not take any action to cause
it to amend or
otherwise modify its partnership agreement in a manner which
would cause it to
- 19 -
be unable to perform or otherwise carry out its obligations under
this
Agreement; or (2) otherwise take any action which would
materially effect its
ability to perform its obligations under this Agreement.
5.2 Compliance, Consents and Approvals. Purchaser shall
(1) comply
with and obtain all necessary consents, waivers, authorizations
and approvals of
all governmental and regulatory authorities (including, without
limitation, such
compliances, consents, waivers, authorizations and approvals as
necessary or
required under the RULPA, the Exchange Act, the Securities Act,
the "take over"
or "blue sky" laws of the various states and the
Hart-Scott-Rodino Act) and of
all other persons, firms, partnerships or corporations required
in connection
with the execution, delivery and performance by Purchaser of each
and every
term, condition and provision of this Agreement; and (2)
diligently assist and
cooperate with Seller in preparing and filing all documents
required to be
submitted by Seller to any governmental or regulatory authority
in connection
with such transactions (which assistance and cooperation shall
include, without
limitation, timely furnishing to Seller all information
concerning Purchaser
which, in the reasonable opinion of counsel to Seller, is
required to be
included into the documents) and in obtaining any governmental
and regulatory
authorities, consents, waivers, authorizations or approvals which
may be
required to be obtained by Seller in connection with the
transactions
contemplated by this Agreement.
6. CONFIDENTIALITY. Seller and Purchaser acknowledge the
terms and
provisions of the confidentiality letter agreement attached
hereto as EXHIBIT F
(the "Confidentiality Letter Agreement") entered into by and
between the General
Partner of Seller and the general partner of Purchaser, reaffirm
same, and agree
to be fully bound thereby; and further agree that the terms and
provisions of
this Agreement shall be included within the meaning of
"Information" as defined
in the Confidentiality Letter Agreement. For purposes of this
Agreement, the
term "Party" under the Confidentiality Letter Agreement shall be
deemed to
include Seller and Purchaser. In connection with the foregoing,
Seller and
Purchaser covenant and agree to treat and hold all Information
contained in this
Agreement and in an exhibit, schedule, instrument, ancillary
agreement or other
- 20 -
document relating hereto, strictly confidential, except as
expressly provided
otherwise in the Confidentiality Letter Agreement; and further
covenant and
agree to consult and confer with each other and each of their
respective counsel
prior to issuing any public announcement or statement with
respect to this
Agreement and the Plan of Merger contemplated by the Merger
Agreement and any
other matter relating to this Agreement.
7. CONDITIONS OF CLOSE WITH RESPECT TO SELLER. All
obligations of Seller
under this Agreement are subject to fulfillment, at or prior to
the Closing Date
of the following conditions, part or all of which may be waived
by Seller only
by written notice to Purchaser on or before the Closing Date.
7.1 Representations, Warranties and Covenants of
Purchaser. All
representations, warranties and covenants made by Purchaser in
this Agreement
shall be true, correct and complete on and as of the Closing
Date, the same
effect as those such representations, warranties and covenants
had been made on
and as of the Closing Date.
7.2 Obligations and Conditions of Purchaser. Purchaser
shall have
performed and complied with all covenants and obligations
required by it under
this Agreement on or prior to the Closing Date.
7.3 Consents and Approvals/Qualifications. All
compliances, consents,
waivers, authorizations, permits, approvals or qualifications of
any
governmental authority or regulatory body of the United States or
of every state
(including, without limitation, such Purchaser compliances,
consents, waivers,
authorizations, approvals and qualifications with respect to the
RULPA, the
Exchange Act, the Securities Act, the "take-over" or "blue sky"
laws of the
various states and the Hart-Scott-Rodino Act as specified in
SECTION 5.3 hereof)
required in connection with the execution, delivery and
performance of this
Agreement, shall have been duly obtained and shall be in full
force and effect
on the Closing Date.
7.4 No Violation of Orders, Etc. There shall not be in
effect on the
Closing Date any statute, rule or regulation to create executive
order,
preliminary or permanent injunction or other order issued,
promulgated or
enacted by any federal, state or local government, or regulatory
authority or
- 21 -
court which declares this Agreement invalid in any respect or
prevents the
consummation of the transactions contemplated hereby; and no
action or
proceeding before any federal, state or local court, or
governmental or
regulatory authority shall be instituted or threatened by any
federal, state or
local government or governmental or regulatory authority or by
any other person,
entity or organization which seeks to prevent or delay the
consummation of the
transactions contemplated by this Agreement (including without
limitation, the
consummation of the proposed plan of merger pursuant to the terms
and provisions
of the Merger Agreement) or which challenges the validity or
enforceability of
this Agreement or any term or provision hereof.
7.5 Purchase Price. Purchaser shall have delivered to
Seller the
Purchase Price and the Reimbursement and all documents and
instruments in
connection therewith including, without limitation, the Note and
the Security
Agreement.
7.6 Certificate of Good Standing. Purchaser shall have
delivered to
Seller certificates of partnership and tax good standing and
legal existence of
Purchaser as of nor more than thirty (30) days prior to the
Closing Date from
the Secretary of State of California.
8. CONDITIONS OF CLOSE WITH RESPECT TO PURCHASER. All
obligations of
Purchaser under this Agreement are subject to fulfillment, at or
prior to the
Closing Date of the following conditions, part or all of which
may be waived by
Purchaser only by written notice to Seller on or before the
Closing Date.
8.1 Representations, Warranties and Covenants of Seller.
All
representations and warranties and covenants made by Seller in
this Agreement
shall be true, correct and complete on and as of the Closing
Date, the same
effect as those such representations, warranties and covenants
had been made on
and as of the Closing Date.
8.2 Obligations and Conditions of Seller. Seller shall
have performed
and complied with all covenants and obligations required by it
under this
Agreement on or prior to the Closing Date.
8.3 Consents and Approvals/Qualifications. All
compliances, consents,
waivers, authorizations, permits, approvals or qualifications of
- 22 -
any
governmental authority or regulatory body of the United States or
of every state
(including, without limitation, such Seller compliances,
consents, waivers,
authorizations, approvals and qualifications with respect to the
RULPA, the
Exchange Act, the Securities Act, the "take-over" or "blue sky"
laws of the
various states and the Hart-Scott-Rodino Act as specified in
SECTION 4.3 hereof)
required in connection with the execution, delivery and
performance of this
Agreement, shall have been duly obtained and shall be in full
force and effect
on the Closing Date.
8.4 Proceedings and Documents. All corporate,
partnership and other
proceedings in connection with the transactions contemplated at
the Closing
(including without limitation, consummation of the proposed plan
of merger
pursuant to the terms of the Merger Agreement) and all documents
incident
thereto, shall be reasonably satisfactory in form and substance
to Purchaser's
counsel, which counsel shall have received all such counterpart
original or
certified or other copies of such documents as he/she may
reasonably request or
require.
8.5 No Violation of Orders, Etc. There shall not be in
effect on the
Closing Date any statute, rule or regulation to create executive
order,
preliminary or permanent injunction or other order issued,
promulgated or
enacted by any federal, state or local government, or regulatory
authority or
court which declares this Agreement invalid in any respect or
prevents the
consummation of the transactions contemplated hereby; and no
action or
proceeding before any federal, state or local court, or
governmental or
regulatory authority shall be instituted or threatened by any
federal, state or
local government or governmental or regulatory authority or by
any other person,
entity or organization which seeks to prevent or delay the
consummation of the
transactions contemplated by this Agreement (including without
limitation, the
consummation of the proposed plan of merger pursuant to the terms
and provisions
of the Merger Agreement) or which challenges the validity or
enforceability of
this Agreement or any term or provision hereof.
8.6 Consummation of Plan of Merger. The consummation of
all
transactions necessary to consummate the plan of merger pursuant
- 23 -
to the terms
and provisions of the Merger Agreement, as amended, including,
without
limitation, the satisfaction of each and every condition
precedent set forth in
Article VI of the Merger Agreement.
8.7 Elements of Financing. The Holding Company having
obtained
commitments for the required elements of financing in connection
with the merger
transaction contemplated under the terms and provisions of the
Merger Agreement
on terms and conditions satisfactory to the Holding Company in
its sole
discretion, including by way of example the following: (i)
obtaining a
commitment from a lender for the senior facility in the
approximate sum of Forty
Million Dollars ($40,000,000); (ii) obtaining a commitment from a
lender for a
senior subdebt facility in the approximate sum of Ten Million
Dollars
($10,000,000); (iii) Purchaser obtaining financing in the sum of
Five Million
Dollars ($5,000,000) and having arranged to purchase and acquire
shares of
common stock of Company from other existing shareholders on
negotiated terms by
way of promissory notes substantially similar to the Note
contemplated herein
and cash and other property which promissory notes and cash and
other property
(including the Note herein) total in the aggregate the sum of
Five Million
Dollars ($5,000,000) for a total of Ten Million Dollars
($10,000,000); and
(iv) existing lenders, creditors and other obligees of the
Company having agreed
to the financial arrangements contemplated in connection with the
proposed plan
of merger pursuant to the terms and provisions of the Merger
Agreement.
8.8 Dealer Participation. At least eighty-five percent
(85%) of the
Dealers shall have elected to participate in the Merger
transaction contemplated
under the terms and provisions of the Merger Agreement.
8.9 Approval of Big O ESOP. The Big O ESOP shall have
provided its
approval as required by the terms of the governing documents of
the Big O ESOP
and applicable law of the proposed plan of merger contemplated
under the terms
and provisions of the Merger Agreement and the terms, provisions
and conditions
by which the Holding Company shall be formed, structured,
operated and governed,
including, without limitation, having obtained a fairness opinion
and
appropriate approval by the employees of the Company
participating in the Big O
- 24 -
ESOP; and that pursuant to the foregoing, holders of at least
eighty percent
(80%) of the shares of Common Stock of the Company owned and held
by the Big O
ESOP shall have elected to roll over their existing ESOP accounts
into
investments in securities of Holding Company pursuant to the
terms and
provisions of the plan of merger contemplated under the Merger
Agreement.
8.10 Certificate of Good Standing. Seller shall have
delivered to
Purchaser certificates of partnership and tax good standing and
legal existence
of Seller as of no more than thirty (30) days prior to the
Closing Date from the
Secretary of State of California.
8.11 Approval by Board of Directors of Company. The
Board of Directors
shall have approved the Holding Company's proposed plan of merger
on terms and
conditions satisfactory to the Holding Company, in its sole
discretion.
8.12 Shareholder Approval. The plan of merger pursuant
to the terms
and conditions of the Merger Agreement shall have been approved
and adopted by
the shareholders of the Company.
9. INDEMNIFICATION.
9.1 Indemnification By Seller. Seller agrees to and
shall indemnify,
protect, defend and hold harmless Purchaser from and against and
in respect of
any and all claims, losses, damages, costs, expenses,
obligations, charges,
recoveries, and deficiencies, including interest, penalties and
reasonable
attorneys' fees and other related expenses (collectively, the
"Seller Claims")
resulting from or arising out of or relating to any inaccuracy in
or breach of
any representation, warranty, covenant or agreement of Seller
contained in this
Agreement or in any schedule, certificate, exhibit, attachment or
other
instrument furnished or to be furnished by Seller pursuant to the
terms and
provisions of this Agreement.
9.2 Indemnification By Purchaser. Purchaser agrees to
and shall
indemnify, protect, defend and hold harmless Seller from and
against and in
respect of any and all claims, losses, damages, costs, expenses,
obligations,
charges, recoveries, and deficiencies, including interest
penalties and
reasonable attorneys' fees and other related expenses
(collectively, the
- 25 -
"Purchaser Claims") resulting from or arising out of or relating
to any
inaccuracy in or breach of any representation, warranty, covenant
or agreement
of Purchaser contained in this Agreement or in any schedule,
certificate,
exhibit, attachment or other instrument furnished or to be
furnished by
Purchaser pursuant to the terms and provisions of this Agreement.
9.3 Notice of Asserted Liability. Promptly after
receipt by any party
hereto ("Indemnitee") of notice of any assertion of any claim
where the
commencement of any action against it in respect of which
Indemnitee or
reimbursement may be sought hereunder (an "Assertion"), such
Indemnitee shall
promptly give written notice (the "Claims Notice") to the other
party obligated
to provide indemnification pursuant to this SECTION 9 (the
"Indemnitor") of the
Assertion, but failure to so notify the Indemnitor shall not
relieve such
Indemnitor of its liability to the Indemnitee hereunder.
Indemnitor shall be
obligated to assume the defense of such Assertion at its own
expense with
counsel chosen by the Indemnitor in reasonably satisfactory to
the Indemnitee.
Notwithstanding that the Indemnitor shall be obligated to assume
the defense of
any Assertion, Indemnitee shall have the right to participate in
the
investigation and defense thereof, with separate counsel chosen
by such
Indemnitee but in such event the fees and expenses of such
counsel shall be paid
by such Indemnitee unless (i) Indemnitor shall agree to pay such
fees and
expenses, (ii) the Indemnitor shall have failed to assume the
defense of such
Assertion and to employ counsel satisfactory to such Indemnitee
or (iii) in the
reasonable judgment of the Indemnitee, based upon the advice of
its counsel, a
potential conflict of interest may exist between the Indemnitor
and the
Indemnitee with respect to such Assertion (in which case, such
Indemnitee
notifies the Indemnitor that such Indemnitee elects to employ
separate counsel
at the Indemnitor's expense, the Indemnitor shall not have the
right to assume
the defense of such Assertion on behalf of such Indemnitee.
Notwithstanding
anything to the contrary in this SECTION 9.3, the Indemnitor
shall not, without
the prior written consent of such Indemnitee, (a) settle or
compromise any
action or consent to the entering of any judgment which does not
include as an
unconditional term thereof the delivery by the claimant or
- 26 -
plaintiff to such
Indemnitee of a duly executed written release of such Indemnitee
from all
liability in respect of such Assertion, which release shall be
satisfactory in
form and substance to counsel to such Indemnitee, or (b) settle
or compromise
any action in a manner that, in the sole judgment of such
Indemnitee or its
counsel, may materially and adversely affect such Indemnitee
other than as a
result of money damages or other money judgments.
9.4 Survival. The indemnification, protection, defense
and hold
harmless obligations of the parties contained in this SECTION 9
shall survive
the closing or other termination of this Agreement.
10. MISCELLANEOUS PROVISIONS.
10.1 Survival of Representations, Covenants and
Warranties. The
respective representations, covenants and warranties of each of
the parties to
this Agreement shall survive the execution and delivery of this
Agreement, and
the closing or other termination of this Agreement.
10.2 Successors and Assigns. Except as otherwise
provided herein, the
terms and conditions of this Agreement shall inure to the benefit
of and be
binding upon the respective successors and assigns of the parties
hereto.
Provided, however, that nothing contained in this Agreement,
whether express or
implied, is intended to confer upon any party other than the
parties hereto or
their respective successors and assigns any rights, remedies,
obligations or
liabilities under or by reason of this Agreement, except as
expressly provided
in this Agreement.
10.3 Governing Law. This Agreement shall be governed by
and construed
under the laws of the State of California as applied.
10.4 Counterparts. This Agreement may be executed in
two or more
counterparts each of which shall be deemed an original, but all
of which
together shall constitute one instrument.
10.5 Expenses. Each party shall bear its respective
expenses incurred
in connection with the preparation, execution and performance of
this Agreement
and the transactions contemplated hereby, including, without
limitation, all
fees and expenses of agents, representatives, counsel,
accountants and other
professional advisors.
- 27 -
10.6 Notices. Unless otherwise provided, all notices
and
othercommunications required or permitted under this Agreement
shall be in
writing and shall be mailed by U.S. first-class mail, postage
prepaid, sent by
facsimile or delivered personally by hand or by a nationally
recognized courier
addressed to the party to be notified at the address or facsimile
number as
follows, or at such other address or facsimile number as such
party may
designate by ten (10) days advance notice to the other party:
If to Purchaser: Big O Tire Dealers, L.P.
c/o Richard P. Waxman, Esq.
Wendel, Rosen, Black & Dean
P.O. Box 2047
Oakland, CA 94604-2047
With copy to: WENDEL, ROSEN, BLACK & DEAN
P.O. Box 2047
Oakland, CA 94604-2047
Attn: Richard P. Waxman, Esq.
If to Seller: Kenneth W. Pavia, Sr.
General Partner
Balboa Investment, L.P.
1101 East Balboa Blvd.
Newport Beach, CA 92661-1313
With copy to: Latham & Watkins
505 Montgomery Street, Suite 1900
San Francisco, CA 94111-2562
Attn: Scott R. Haber, Esq.
All such notices and other written communication shall be
effective on the date
of mailing, facsimile transfer or delivery.
10.7 Entire Agreement. This Agreement together with all
schedules,
exhibits, attachments, instruments and documents referred to
herein constitute
the entire agreement among the parties and neither party shall be
liable or
bound to the other party in any manner by any warranties,
representations or
covenants except as specifically set forth herein or therein.
10.8 Waivers, Amendments and Remedies. This Agreement
may be amended
to, preceded, cancelled, renewed or extended, and the terms
hereof may be
waived, only by a written instrument signed by Purchaser and
Seller or, in the
case of a waiver, by the party waiving compliance. No delay on
the part of any
party in exercise any right power or privilege hereunder shall
operate as a
waiver thereof; nor shall any waiver on the part of any party of
any such right,
power or privilege, or any single or partial exercise of any such
right, power
- 28 -
or privilege preclude any further exercise thereof or the
exercise of any other
such right, power or privilege. The rights and remedies herein
provided are
cumulative and are not exclusive in any rights or remedies that
any party may
otherwise have at law or in equity. The rights and remedies of
any party based
upon, arising out of or otherwise in respect of any inaccuracy in
or breach of
any representation, warranty, covenant or agreement contained in
this Agreement
shall in no way be limited by the fact the act, omission,
occurrence or other
state of facts upon which any claim of any such inaccuracy or
breach is based
may also be the subject matter of any other representation,
warranty, covenant
or agreement contained in this Agreement (or in any other
agreement among the
parties herein as to which there is no inaccuracy or breach).
10.9 Severability. If one or more provisions of this
Agreement are
held to be unenforceable under applicable law, such provisions
shall be excluded
from this Agreement and the balance of the Agreement shall be
interpreted as if
such provision were so excluded and shall be unenforceable in
accordance with
its terms.
10.10 Headings/Recitals/Exhibits. The section headings
in this
Agreement are solely for convenience of reference and do not
affect the meaning
or interpretation of this Agreement or any term or provision
hereof. The
recitals set forth in the introductory paragraphs hereof and each
exhibit,
schedule or other attachment referred to in this Agreement and
attached hereto
from an integral part of this Agreement are incorporated herein
by this
reference and made a part hereof.
10.11 Knowledge. Where any representation, warranty or
statement
contained in this Agreement or in any certificate or document
delivered in
connection with this Agreement is expressly qualified to the
knowledge of the
person making such representation, warranty or statement, it
shall mean the
knowledge of such person actually possesses by having made a
reasonable inquiry
as to the matters which are the subject thereof.
10.12 Necessary Action. Each of the parties will use
its reasonable
efforts to take all actions and to do all things as shall be
necessary, proper
or advisable to consummate and make effective the transactions
contemplated by
- 29 -
this Agreement.
10.13 Time. Time is of the essence of this Agreement.
10.14 Attorneys' Fees.
(a) If any action at law is necessary to enforce or
interpret the
terms of this Agreement and all exhibits, schedules, instruments
and documents
referred to herein, the prevailing party shall be entitled to
reasonable
attorneys' fees, costs and disbursements in addition to any other
relief to
which such party may be entitled.
(b) Attorneys' fees incurred by any party to this
Agreement in
enforcing any judgment, order or action brought to resolve any
controversy
arising under this Agreement shall be recoverable by the
prevailing party. Such
rights to recover postjudgment attorneys' fees shall be separate
and distinct
from the right to recover attorneys' fees pursuant to subsection
(a) above. The
provisions of this paragraph 10.14(b) shall be severable from all
provisions of
this Agreement and shall survive any judgment and shall not be
deemed merged
into any judgment.
10.15 California Corporate Securities Laws. SALE OF THE
SECURITIES
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
ISSUANCE OF SUCH
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION FOR SUCH
SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL. UNLESS THE
SALE OF
SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102
OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS
AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS
SO EXEMPT.
IN WITNESS WHEREOF, Seller and Purchaser have caused this
Agreement to be
executed as of the date first above written.
"SELLER" "PURCHASER
BALBOA INVESTMENT GROUP, L.P. BIG O TIRE DEALERS, L.P.
By: BIG O TIRE DEALERS OF
AMERICA
Its: General Partner
By____________________________
Kenneth W. Pavia, Sr.
General Partner By__________________________
Wesley Stephenson
- 30 -
Its: President
<PAGE>
SECURITY AND PLEDGE AGREEMENT
THIS SECURITY AND PLEDGE AGREEMENT (the "Agreement") is made
as of this
____ day of ________________, 1995, is by and between BIG O
DEALERS, L.P., a
California limited partnership ("Pledgor"), BALBOA INVESTMENT
GROUP, L.P., a
_______________ limited partnership (the "Secured Party") and
_____________________________ (the "Escrow Holder").
RECITALS
A. Pledgor is the maker under that certain promissory
note of even date
herewith in favor of Secured Party in the principal amount of
___________________________ Dollars ($_______) (the "Note").
B. The note provides that the obligations of Pledgor
under the Note are
to be secured by a security interest in, and a pledge of a
portion of Debtor's
interest in BOTI Holdings, Inc., a Nevada corporation ("Holding
Company")
NOW, THEREFORE, the parties hereto agree as follows:
AGREEMENT
In consideration of the foregoing recitals and agreements
and undertakings
set forth below, Secured Party and Pledgor agree as follows:
1. APPOINTMENT OF ESCROW HOLDER. Pledgor and Secured
Party hereby
appoint Escrow Holder for the purposes set forth in this
Agreement, and Escrow
Holder accepts such appointment on the terms and conditions set
forth herein.
2. SECURITY INTEREST. To secure the performance of all
of the
obligations of Pledgor under the Note, Pledgor hereby grants a
security interest
in and hereby deposits with Escrow Holder a certificate or
certificates
evidencing ________________ (__) of Pledgor's shares of common
stock of Holding
Company owned and held by Pledgor (the "Pledged Shares") and a
reasonable number
of stock powers substantially in the form set forth in EXHIBIT A
attached
hereto, executed in blank with respect thereto, which shares and
stock powers
are to be held by the Escrow Holder for use in accordance with
the terms and
provisions of this Agreement. The Escrow Holder may, but need
not, have the
Pledged Stock registered in its name, as Escrow Holder, pursuant
- 31 -
to this
Agreement.
3. OBLIGATIONS SECURED. Pledgor agrees that the
security interest
created hereby secures performance of Pledgor's obligations under
the Note and
all amendments, extensions, renewals and substitutions therefor
or thereto.
4. WARRANTIES AND OBLIGATIONS OF PLEDGOR. Pledgor
hereby affirms,
warrants, represents, covenants, and agrees as follows:
4.1 Pledgor has full power and authority to execute
and deliver
and to perform and observe the provisions of this Agreement, and
to carry out
the transactions contemplated hereby and thereby. The execution,
delivery and
performance by Pledgor of this Agreement have been duly
authorized by all
necessary corporate action required on its part. This Agreement
will constitute
a legal, valid and binding obligation of Pledgor, enforceable
against Pledgor in
accordance with its terms, subject to applicable bankruptcy and
other laws for
the relief of debtors.
4.2 The execution, delivery and performance of this
Agreement by
Pledgor will not result in a violation of its charter documents
or any mortgage,
deed of trust, indenture, material contract, instrument,
agreement, judgment,
decree, order, statute, law, rule or regulation to which Pledgor
is subject, or
be in conflict with, result in a breach of or constitute (with
due notice and/or
lapse of time or both) a default under any such mortgage, deed of
trust,
indenture, material contract, instrument or agreement, or result
in the creation
or imposition of any lien, charge or encumbrance of any nature
whatsoever upon
any of the respective properties or assets of Pledgor, except as
contemplated by
the provisions of this Agreement.
4.3 Any consent, approval or authorization of or
designation or
filing with any governmental authority on the part of Pledgor
which is required
in connection with the security interest granted under this
Agreement has been
obtained or effected.
4.4 Pledgor shall pay, perform or otherwise satisfy
the Note, when
the same shall become due, whether by acceleration or otherwise.
4.5 The Pledged Shares are owned by Pledgor, free
and clear of all
- 32 -
liens, interests and encumbrances.
5. WARRANTIES AND REPRESENTATIONS TO REMAIN IN EFFECT.
Pledgor further
warrants to Secured Party, and covenants and agrees with Secured
Party, that all
of those warranties and representations and agreements set forth
in paragraph 4
hereof shall be in full force and effect until the Note has been
paid in full.
6. VOTING OF PLEDGED SHARES; DIVIDENDS. So long as no
event of default
exists hereunder Pledgor shall be entitled to vote the Pledged
Shares in respect
of any matters of business not constituting violations of this
Agreement. Upon
any default by Pledgor under the Note, Secured Party shall, in
addition to any
other remedies, be entitled at its option to vote all Pledged
Shares held by
Escrow Holder until such time as the default is cured by payment
of the amount
in default. In connection therewith, Pledgor grants the Secured
Party an
irrevocable proxy to vote the Pledged Shares. Such proxy is
coupled with an
interest and shall remain in full force and effect until such
time as the
obligation under the Note is paid in full. All dividends
declared and paid on
the Pledged Shares during the existence of this Agreement shall
be paid to the
Pledgor so long as Pledgor is not in default hereunder or under
the Note. Upon
any such default, Secured Party, in addition to any other
remedies available,
shall be entitled at its option to be paid and to retain all such
dividends pro
rata until such time as the default is cured.
7. TERMINATION UPON FULL PAYMENT. When all sums of
principal and
interest due under all of the notes in the Series have been paid,
all Pledged
Shares held by the Escrow Holder shall be delivered to Pledgor.
Provided that,
the Pledged Shares shall be released by the Escrow Holder only
after written
notice from the Secured Party or such other holder of the Note
(or upon adequate
proof submitted by the Pledgor) that payment of principal and
interest has been
made in full.
8. EVENTS OF DEFAULT. An event of default shall be
deemed to exist
hereunder at any time when:
(a) The Pledgor shall have failed to pay any
payment due under
the Note; or
(b) The Pledgor shall have (i) adopted a plan of
- 33 -
dissolution or
partial liquidation or taken any steps towards such end; or (ii)
been declared a
bankrupt or insolvent; or (iii) made a general assignment for the
benefit of
creditors, or entered into an arrangement with any creditor; or
(iv) suffered
the appointment of a receiver by a court of competent
jurisdiction; or (v)
suffered a material detrimental loss of business or the
occurrence of any event
which would reasonably be expected to cause a substantial
reduction in the value
of the Pledged Shares; or (vi) caused or permitted the occurrence
of any event
or transaction which could reasonably be expected to have a
substantial
detrimental effect upon the value of the Pledged Shares.
Upon the existence of an act of default Secured Party, at
its option, may
by written notice to Pledgor declare the Note immediately due and
payable and
may proceed to enforce its rights under this Agreement, as well
as pursuing any
other remedies at law or in equity.
9. SALE OF PLEDGED STOCK ON DEFAULT/RETENTION. In the
event of default
by Pledgor of its obligations under the Note and without limiting
the remedy or
remedies therefor, Escrow Holder shall, subject to applicable
law, attempt to
sell, upon written instruction from Secured Party, after five (5)
days written
notice to Pledgor specifying the time and place of sale, so much
of the Pledged
Shares as may be necessary to produce the sum required in order
to pay the total
amount then due under the terms of the Note. Said sale may be
public or private
in the sole discretion of the Secured Party or the Secured Party
may elect,
pursuant to applicable law, to retain the Pledged Shares in
satisfaction of
Pledgor's obligations to Secured Party under the Notes.
10. SALE PROCEEDS. In case of said sale, Escrow Holder
shall deliver
the Pledged Shares to the purchasers thereof and shall apply any
and all monies
or credits, including the proceeds of any such sale or sales, to
the cost of
sale, including reasonable attorneys' fees of the Escrow Holder,
and the balance
after such sale shall be credited against the amount due and
owing under the
Note. Any sum remaining thereafter is to be delivered to Pledgor
or to
whomsoever may be lawfully entitled to receive such surplus. At
any such sale,
whether public or private, the holder of the Note or its/his/her
representative
shall have the right to purchase the property sold, or any part
- 34 -
thereof,
directly or in the name or names of either persons, and may bid
by allowing
credit in the bid amount against sums due and owing under the
Note or hereunder.
11. NOTICES. All notices or other communications
required or permitted
hereunder shall be in writing and shall be mailed by U.S.
first-class mail,
postage prepaid, sent by facsimile or delivered personally by
hand or by a
nationally recognized courier addressed tot he party to be
notified at the
address or facsimile number as follows, or at such other address
or facsimile
number as such party may designate upon not less than ten (10)
days' advance
written notice to the other party:
If to Pledgor: _____________________________
_____________________________
_____________________________
(_____)______________________
With a copy to: Wendel, Rosen, Black & Dean
P.O. Box 2047
Oakland, CA 94604-2047
(510) 834-1928 (facsimile)
Attn: Richard P. Waxman
If to Secured Party: Balboa Investment Group, L.P.
1101 East Balboa Blvd.
Newport Beach, CA 92661-1313
(___)______________ (facsimile)
Attn: Kenneth W. Pavia, Sr., General
Partner
With a copy to: Latham & Watkins
505 Montgomery Street, Suite 1900
San Francisco, CA 94111-2562
(415)______________ (facsimile)
Attn: Scott R. Haber
12. CALIFORNIA LAW. This Agreement shall be deemed to
be a contract
made and entered into under and pursuant to the law of the State
of California,
and shall be a California contract, and shall be construed and
enforced in
accordance with the laws of the State of California.
13. WAIVER OF LAW. Except as otherwise expressly
specified in this
Agreement, all of the provisions of law providing for the
retention of pledged
property and prescribing the conditions, demands, and notice of
mailing are to
the extent permissible hereby expressly waived by Pledgor.
14. NONWAIVER. Should Escrow Holder postpone any action
to be taken
hereunder, or accept a payment on a date beyond the due date of
the Note, such
- 35 -
action shall not constitute a waiver of any of the rights of the
Secured Party
hereunder or under the Note.
15. BINDING EFFECT. This Agreement shall inure to the
benefit of and
shall be binding upon the parties hereto, and each of them, and
their respective
heirs, executors, administrators, personal representatives, legal
representatives, successors and assigns.
16. AMENDMENT. This Agreement shall not be amendable
except by a
written agreement of amendment executed by each of the parties
hereto.
17. ATTORNEYS' FEES. In the event that any action is
brought to
enforce any of the provisions of this Agreement, or to obtain
money damages for
the breach thereof, and such action results in the award of a
judgment for money
damages or in the granting of any injunction in favor of one of
the parties to
this Agreement, all expenses, including reasonable attorneys'
fees, shall be
paid by the nonprevailing party.
18. RELEASE OF ESCROW HOLDER. Pledgor and Secured Party
hereby release
Escrow Holder from any liability arising from Escrow Holder's
performance
hereunder, except liability for acts of gross negligence or
willful misconduct.
Specifically, Escrow Holder shall not be liable for failure of
any of the
conditions of the pledge or for failure to ascertain the terms or
conditions, or
comply with, any of the provisions of any agreement or other
document referred
to in this Agreement nor shall the Escrow Holder be liable for
the wrongful
assertion by either Pledgor or Secured Party of its rights and/or
remedies
hereunder. Escrow Holder shall not be liable for forgeries or
impersonations.
Should any controversy arise between the parties hereto, or with
any third
person, Escrow Holder shall not be required to determine the same
or take any
action, but may await the settlement of such controversy by
appropriate legal
proceedings. Pledgor and Secured Party and each of them, hereby
agree to and
shall indemnify, protect, defend and hold harmless the Escrow
Holder and its
partners, agents, employees, directors, officers, and principals
from all
liabilities, obligations, losses, damages, actions, suits, costs
and expenses
(including, without limitation, attorneys' fees) of whatever kind
or nature
imposed on, incurred by, or asserted against the Escrow Holder
which are in any
- 36 -
way related to or arise out of the execution and delivery of this
Agreement and
any action taken hereunder by Escrow Holder.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement on the
day and year first above written.
"PLEDGOR" "SECURED PARTY"
BIG O DEALERS, L.P., a California limited BALBOA INVESTMENT
GROUP, L.P., a
partnership California limited
partnership
By: BIG O TIRE DEALERS OF
AMERICA, a Californa nonprofit By:
________________________
mutual benefit corporation, general Kenneth W.
Pavia, Sr.
partner Its General Partner
By______________________________
Wesley Stephenson
Its President
"ESCROW HOLDER"
______________________________________
By____________________________________
Name__________________________________
Its_____________________________________
<PAGE>
EXHIBIT A
STOCK ASSIGNMENT SEPARATE FROM CERTIFICATES
FOR VALUE RECEIVED, the undersigned hereby sells, assigns,
and transfers
unto __________________________________________,
_______________________________________ shares of the common
stock of BOTI
Holdings, Inc., a Nevada corporation ("Holding Company"),
standing in the name
of Big O Dealers, L.P., a California limited partnership, on the
books of
Holding Company, represented by Certificate No. _________
herewith and
irrevocably constitutes and appoints
____________________________________
attorney to transfer the said stock of the books of Holding
Company with full
power of substitution.
Dated: ____________, 1995 BIG O DEALERS, L.P., a California
limited
- 37 -
partnership
By: BIG O TIRE DEALERS OF AMERICA,
a
California nonprofit mutual
benefit
corporation, general partner
By____________________________________
Wesley Stephenson
Its President
<PAGE>
THE SECURITY OFFERED HEREBY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF
1933, AS AMENDED, OR UNDER ANY STATE SECURITIES LAWS AND MAY NOT
BE SOLD,
TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION
STATEMENT UNDER THE APPLICABLE FEDERAL AND STATE SECURITIES LAWS
OR AN OPINION
OF COUNSEL ACCEPTABLE TO [1], A CALIFORNIA LIMITED PARTNERSHIP,
THAT SUCH
REGISTRATION IS NOT REQUIRED.
PROMISSORY NOTE
$_____________
____________, 1995
FOR VALUE RECEIVED, the undersigned, BIG O DEALERS, L.P., a
California
limited partnership (the "Maker"), hereby promises to pay to the
order of BALBOA
INVESTMENT GROUP, L.P., a California limited partnership
(together with any
successors or assigns, the "Payee"), at the time and in the
manner hereinafter
provided, the principal sum of
___________________________________ ($_______),
together with interest computed thereon at the rate hereinafter
provided. All
amounts due and payable hereunder shall be paid in immediately
available funds
of the United States.
The outstanding principal amount of this Note shall bear
interest from the
date hereof until the due date at the rate of ______ percent
(__%) per annum,
and shall be payable in seventy-two (72) equal monthly
installments of principal
and interest ___________________ ___________________ Dollars
($_________) on the
first day of each month commencing _____________, 199___, and
continuing through
______________, 20__. An amortization schedule is attached
hereto as SCHEDULE 1
and incorporated herein by this reference.
- 38 -
All payments shall be payable to Payee at 1101 East Balboa
Blvd., Newport
Beach, California 92661-1313, or at such other place as Payee may
designate from
time to time in writing to Maker. All payments shall be first
applied to the
payment of interest due, then to the payment of any other sums
payable hereunder
and finally to the principal amount then remaining unpaid. This
Note may be
prepaid in whole or in part from time to time, without premium or
penalty.
If any payment due hereunder is not received by Payee on or
before the
tenth (10th) day after such payment is due, the late payment
shall be subject to
a six percent (6%) penalty. Maker shall be deemed in default
hereunder in the
event (i) any payment due hereunder is not received by Payee on
or before the
fifteenth (15th) day after such payment is due, or (ii) Maker
shall fail to
perform any term, covenant or agreement Maker is obligated to
perform or observe
contained in this Note or the Security Agreement defined below.
If an event of
default is not cured within ten (10) days following written
notice from Payee,
then all sums (including, without limitation, principal, interest
and penalties)
then due and payable shall, at the option of Payee, become
immediately due and
payable.
Payment of the principal of and accrued interest on this
Note shall be
secured by a security interest in and pledge of _____ shares of
common stock of
BOTI Holdings, Inc., a Nevada corporation, pursuant to that
certain Security and
Pledge Agreement of even date herewith, by and between the Maker
and Payee (the
"Security Agreement").
In the event of default hereunder and placement of this Note
in the hands
of an attorney for collection (whether or not suit is filed), or
if this Note is
collected by suit or legal proceedings or through bankruptcy
proceedings, the
Maker agrees to pay in addition to all sums then due hereon,
including principal
and interest, all expenses of collection, including, without
limitation,
reasonable attorneys' fees.
The Maker and any and all sureties, guarantors and endorsers
of this Note
and all other parties now or hereafter liable hereon, severally
waive grace,
demand, presentment for payment, notice of dishonor, protest and
notice of
protest, notice of intention to accelerate, notice of
- 39 -
acceleration, any other
notice and diligence in collecting and bringing suit against any
party hereto
and agree (i) to all extensions and partial payments, with or
without notice,
before or after maturity, (ii) to any substitution, exchange or
release of any
security now or hereafter given for this Note, (iii) to the
release of any party
primarily or secondarily liable hereon, and (iv) that it will not
be necessary
for the holder hereof, in order to enforce payment of this Note,
to first
institute or exhaust such holder's remedies against the Maker or
any other party
liable therefor or against any security for this Note. No delay
on the part of
the Payee in exercising any power or right under this Note shall
operate as a
waiver of such power or right, nor shall any single or partial
exercise of any
power or right preclude further exercise of that power or right.
All agreements between the Maker and the holder hereof,
whether now
existing or hereafter arising and whether written or oral, are
hereby expressly
limited so that in no contingency or event whatsoever, whether by
reason of
acceleration of the maturity hereof or otherwise, shall the
amount paid, or
agreed to be paid, to the holder hereof for the use, forbearance
or detention of
the funds advanced pursuant to this Note, or otherwise, or for
the payment of
performance of any covenant or obligation contained herein or in
any other
document or instrument evidencing, securing or pertaining to this
Note exceed
the maximum amount permissible under applicable law. If from any
circumstances
whatsoever fulfillment of any provision hereof or any other
document or
instrument described by law, then ipso facto, the obligation to
be fulfilled
shall be reduced to the limit of such validity, and if from any
such
circumstances the holder hereof shall ever receive anything of
value deemed
interest by applicable law, which would exceed interest at the
highest lawful
rate, such amount which would be excessive interest shall be
applied to the
reduction of the unpaid principal balance of this Note or on
account of any
other principal indebtedness of the Maker to the holder hereof,
and not to the
payment of interest, or if such excessive interest exceeds the
unpaid principal
balance of this Note and such other indebtedness, such excess
shall be refunded
to the Maker. All sums paid, or agreed to be paid, by the Maker
for the use,
forbearance or detention of the indebtedness of the Maker to the
- 40 -
holder of this
Note shall, to the extent permitted by applicable law, be
amortized, prorated,
allocated and spread throughout the full term of such
indebtedness until payment
in full so that the actual rate of interest on account of such
indebtedness is
uniform throughout the term hereof. The terms and provisions of
this paragraph
shall control and supersede every other provision of all
agreements between the
Maker and the holder hereof.
This Note shall be governed by and construed in accordance
with the laws of
the State of California, and shall be deemed to have been
executed and delivered
in the State of California.
All references to the Maker herein shall, and shall be
deemed to, include
its successors and assigns, and all covenants, stipulations,
promises and
agreements contained herein by or on behalf of the Maker shall be
binding upon
its successors and assigns, whether so expressed or not.
IN WITNESS WHEREOF, this Note has been duly executed and
delivered by Maker
as of the date first above written.
"Maker"
BIG O TIRE DEALERS, L.P., a
California limited partnership
By: BIG O TIRE DEALERS OF
AMERICA, a California
nonprofit
mutual benefit corporation,
general
partner
By___________________________
Name_________________________
Its___________________________
- 41 -
<PAGE>
(99.3) Exhibit C to Schedule 13D
Dated November 9, 1995.
STOCK PURCHASE AGREEMENT
_______________, 1995
<PAGE>
TABLE OF CONTENTS
1. PURCHASE AND SALE OF SHARES
2
1.1 Agreement to Purchase and Sell
2
1.2 Closing
2
1.3 Purchase Price
2
2. REPRESENTATIONS AND WARRANTIES OF SELLER
3
2.1 Organization/Good Standing
3
2.2 Authority
3
2.3 Binding Obligation of Seller
3
2.4 Title to the Shares
3
2.5 No Preemptive or Other Rights
3
2.6 Compliance
3
2.7 Subsidiaries
4
2.8 Brokers and Finders
4
2.9 Proxy Statement/Schedule 13(D)
4
2.10 Permits
4
2.11 Litigation
5
2.12 Accuracy of Information
5
2.13 Investment Intent
5
2.14 Reliance Upon Seller's Representations
5
2.15 Receipt of Information
5
2.16 Restricted Securities
6
2.17 Investment Experience
6
2.18 Accredited Investor
6
2.19 Legend on Note
7
3. REPRESENTATIONS AND WARRANTIES OF PURCHASER
8
3.1 Organization/Good Standing
8
3.2 Authority
8
3.3 Binding Obligation of Purchaser
8
3.4 Compliance
8
3.5 Subsidiaries
9
3.6 Brokers and Finders
9
3.7 Proxy Statement/Schedule 13(D)
9
3.8 Permits
9
3.9 Litigation
9
3.10 Accuracy of Information
9
4. COVENANTS OF SELLER
10
4.1 Negative Covenants
10
4.2 Compliance, Consents and Approvals
10
4.3 Negotiations
10
<PAGE>
5. COVENANTS OF PURCHASER
11
5.1 Negative Covenants
11
5.2 Compliance, Consents and Approvals
11
6. CONFIDENTIALITY
11
7. CONDITIONS OF CLOSE WITH RESPECT TO SELLER
11
7.1 Representations, Warranties and Covenants of
Purchaser 11
7.2 Obligations and Conditions of Purchaser
12
7.3 Consents and Approvals/Qualifications
12
7.4 No Violation of Orders, Etc.
12
7.5 Purchase Price
12
8. CONDITIONS OF CLOSE WITH RESPECT TO PURCHASER
12
8.1 Representations, Warranties and Covenants of Seller
12
8.2 Obligations and Conditions of Seller
12
8.3 Consents and Approvals/Qualifications
- 2 -
12
8.4 Proceedings and Documents
13
8.5 No Violation of Orders, Etc.
13
8.6 Consummation of Plan of Merger
13
8.7 Elements of Financing
13
8.8 Approval of Big O ESOP
13
8.9 Certificate of Good Standing
14
8.10 Approval by Board of Directors of Company
14
8.11 Shareholder Approval
14
9. INDEMNIFICATION
14
9.1 Indemnification By Seller
14
9.2 Indemnification By Purchaser
14
9.3 Notice of Asserted Liability
14
9.4 Survival
15
10. MISCELLANEOUS PROVISIONS
15
10.1 Survival of Representations, Covenants and
Warranties 15
10.2 Successors and Assigns
15
10.3 Governing Law
15
10.4 Counterparts
15
10.5 Expenses
15
10.6 Notices
15
10.7 Entire Agreement
16
10.8 Waivers, Amendments and Remedies
16
10.9 Severability
17
10.10 Headings/Recitals/Exhibits
17
10.11 Knowledge
17
10.12 Necessary Action
17
10.13 Time
17
10.14 Attorneys' Fees
17
10.15 California Corporate Securities Laws
17
<PAGE>
- 3 -
STOCK PURCHASE AGREEMENT
THIS STOCK PURCHASE AGREEMENT ("Agreement") is made as of
__________, 1995,
between
___________________________________________________________
("Seller"),
and Big O Dealers, L.P., a California limited partnership to be
formed
("Purchaser").
RECITALS
A. Seller owns and holds
________________________________________
(_______) shares of common stock (the "Shares") of the Big O
Tires, Inc., a
Nevada corporation ("Company"), par value ten cents ($.10) per
share, which
Shares represent approximately ____________________ percent
(_____%) of all the
issued and outstanding shares of common stock of Company.
B. Purchaser has elected to participate in the possible
acquisition of
Company by and through an entity whose principals may (subject to
certain
conditions precedent, as shall hereinafter be set forth) be
comprised of certain
members of the Company's current senior management ("Big O
Management"), certain
participants in the Company's employee stock ownership plan ("Big
O ESOP"), and
Purchaser (collectively, the "Holding Company"). Purchaser is
required to make
an equity contribution to the Holding Company in exchange for the
issuance of
shares of stock of the Holding Company. In order to make such
equity
contribution, Purchaser is intending to borrow funds from various
lending
sources ("Equity Financing") including acquiring shares of
Company stock by way
of giving a secured promissory note to certain existing
shareholders of the
Company and rolling over such shares of Company stock into the
Holding Company.
In connection with the foregoing, Purchaser desires, upon the
occurrence,
fulfillment and satisfaction of certain conditions precedent as
shall
hereinafter be set forth, to purchase and acquire the Shares.
The Holding
Company has entered into an Agreement and Plan of Merger with the
Company a copy
of which attached hereto as EXHIBIT A (the "Merger Agreement").
C. Each limited partner of Purchaser that owns one or
more duly
franchised Big O Tire retail store (a "Dealer") is required to
execute a
purchase commitment agreement with the Company whereby each such
Dealer agrees
- 4 -
to purchase a minimum number of tire units from the Company for a
six and one
quarter (6.25) year period commencing as of the date of the
consummation of the
Merger pursuant to the Merger Agreement (the "Purchase
Commitment"). In
connection therewith, during the term of the Purchase Commitment,
each such
Dealer is required to make a mandatory additional capital
contribution to
purchase equal to One Dollar ($1.00) for each tire unit purchased
from Company
(the "Tire Contribution").
D. Subject to the terms an conditions as shall
hereinafter be set
forth, Seller is willing to transfer and convey the Shares to
Purchaser.
NOW, THEREFORE, the parties hereto hereby agree as follows:
AGREEMENT
I. PURCHASE AND SALE OF SHARES.
1.1 AGREEMENT TO PURCHASE AND SELL. On the "Closing
Date" (as defined
in SECTION 1.2 below), and upon the terms and subject to each and
every
condition precedent set forth in this Agreement, Seller shall
sell, assign,
transfer, convey and deliver the Shares to Purchaser or its
designee and
Purchaser shall purchase, acquire and accept the Shares from
Seller.
1.2 Seller and Purchaser intend that the "Closing Date"
of the purchase
and sale of the Shares shall take place at the Offices of Gibson,
Dunn &
Crutcher, 1801 California Street, Suite 4200, Denver, Colorado,
80202, on the
date upon which the plan of merger pursuant to the terms of the
Merger Agreement
shall have been fully and completely consummated or at such other
time, place,
and date as the parties hereto shall agree in writing ("Closing
Date").
Provided further, it is expressly understood and agreed by Seller
and Purchaser
that the Closing Date shall not occur unless and until (1) the
plan of merger
pursuant to the Merger Agreement is fully and completely
consummated and (2)
each and every condition precedent set forth in SECTIONS 7 and 8
of this
Agreement shall have been satisfied and fulfilled or waived by
the party who
holds such waiver right. On the Closing Date, Seller shall
transfer and convey
to the Purchaser the Shares.
In the event the Closing Date does not occur on or before
February 28,
- 5 -
1996, and the parties have not otherwise agreed in writing to
extend the Closing
Date, this Agreement shall be null and void and have no further
force and
effect, except that the provisions of SECTIONS 6, 9, and 10 shall
survive such
termination. Provided that, to the extent any provision of this
Agreement is
required to survive for purposes of the indemnification
obligations of each
party to the other pursuant to the provisions of SECTION 9
hereof, such
provisions shall survive such termination. Provided further,
such termination
shall not relieve any party of its liability for any
misrepresentation, default
or breach of this Agreement.
1.3 Purchase Price. The Purchase Price for the Shares
("Purchase
Price") shall be the sum of
____________________________________________ Dollars
($_________) (which represents
________________________________________
(_______) Shares at Sixteen and 50/100 Dollars ($16.50 per Share)
which shall be
paid by Purchaser to Seller at the Closing Date as follows:
[1.3.1 Purchaser shall pay to Seller in cash
or equivalent,
an amount equal to _______________________ Dollars ($__________)
(the "Cash
Portion"), which Cash Portion shall, at the sole election of
Purchaser be paid
(1) as part of the "Merger Consideration" (as such term is
defined in Section
1.5(a) of the Merger Agreement) or (2) by Purchaser
simultaneously with the
consummation of the plan of merger (as specified in Section 1.3
of the Merger
Agreement).
1.3.2 The balance of the Purchase Price, equal
to the sum
____________________________ Dollars ($________) shall be paid
pursuant to the
terms of a secured promissory note in the form attached hereto as
EXHIBIT B (the
"Note"). The Note shall be fully amortized over a six (6)-year
period,
commencing immediately following the Closing Date. Interest on
the unpaid
principal shall bear interest at the rate of _____ percent
(___%) per annum,
and the Note shall be payable in seventy-two (72) equal monthly
installments
over the six (6)-year amortized term commencing on the first day
of the month
following the Closing Date and on the first day of each and every
month
thereafter during the amortized period. The Note shall be
secured by Purchaser
granting Seller a security interest in that portion of
Purchaser's shareholdings
- 6 -
in the Holding Company in the same ratio as the total sum of the
Note bears to
the total of Purchaser's Equity Financing pursuant to the terms
and provisions
of that certain Security and Pledge Agreement in the form
attached hereto as
EXHIBIT C; and by Purchaser assigning as collateral that portion
of the
aggregate of the Dealers' Purchase Commitments in the same ratio
as the total
sum of the Note bears to the total of Purchaser's Equity
Financing. Purchaser
will take all necessary steps to perfect the security interest as
granted and
assign as collateral said portion of the Purchase Commitments.
2. REPRESENTATIONS AND WARRANTIES OF SELLER. Seller hereby
represents and
warrants to Purchaser that each and every statement contained in
this SECTION 2
is correct an complete as of the date of this Agreement and will
be correct and
complete as of the Closing Date.
2.1 ORGANIZATION/GOOD STANDING. [IF AN ENTITY: Seller
is a
______________, duly organized, validly existing and in good
standing under the
laws of the State of __________________, has all requisite
partnership/corporate
power to own and operate its properties and assets and to carry
on its business
as it is now being conducted.] Seller has the full right, power
and authority
and all action has been taken as shall be necessary and required
to consummate
the transactions contemplated hereby.
2.2 AUTHORITY. Seller, or if not Seller, the person
who has signed
this document on behalf of Seller, has the full power, authority
and capacity to
sign and deliver this Agreement and to take all necessary action
on behalf of
Seller as shall be necessary and required to consummate the
transactions
contemplated hereby.
2.3 BINDING OBLIGATION OF SELLER. This Agreement
constitutes the
legally binding obligation of Seller in accordance with the terms
and provisions
hereof, subject as to its enforceability to limitations imposed
by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating
to or effecting
creditors' rights, generally and to the general principals of
equity.
2.4 TITLE TO THE SHARES. Seller owns and holds the
Shares beneficially
and of record, free and clear of any liens, claims, encumbrances
or restrictions
- 7 -
of any kind or nature whatsoever and, upon delivery of and
payment of the
Purchase Price for the Shares as herein provided, Seller shall
convey to
Purchaser valid title thereto, free and clear of any liens,
claims, security
interests, encumbrances or restrictions of any nature or
description.
2.5 NO PREEMPTIVE OR OTHER RIGHTS. No person has any
right of first
refusal, any preemptive or other rights and there are no rights
or restrictions
under the terms and provision of any agreement to which Seller is
subject or
otherwise a party which would prohibit, preclude or otherwise
affect the sale
and transfer of the Shares to Purchaser as contemplated by the
terms and
provisions of this Agreement.
2.6 COMPLIANCE. Neither the execution and delivery of
this Agreement
by Seller nor the consummation of the transactions contemplated
hereby, nor
compliance by Seller with respect to any of the provisions hereof
will:
(1) violate, conflict with or result in the breach of any
provision of, or
constitute a default (or an event which with notice or lapse of
time are both
would constitute a default) under, or result in the termination
of, or
accelerate the performance by, or result in a right of
termination or
acceleration under, or result in a creation of any liens,
security interest,
charge or encumbrance upon any of the properties or assets of
Seller, under any
of the terms or provisions of [(i) the (partnership agreement)
(articles of
incorporation or bylaws) of Seller or] (ii) any material note,
bond, mortgage,
indenture, deed of trust, license, lease agreement, executory
contract or
arrangement or other instrument or obligation to which Seller is
a party or to
which it or any of its properties or assets may be otherwise
subject or bound;
or (2) subject to Seller's obligations to take all necessary
steps to comply
with the statutes or regulations referred to in the last sentence
of this
paragraph, violate any judgment, ruling, writ, injunction,
decree, statute, rule
or regulation applicable to Seller, or any of its respective
properties or
assets. Other than in connection with Seller's obligation to
comply with the
provisions of the Securities Exchange Act of 1934, as amended, or
any similar
successor, federal statute and the rules and regulations
thereunder, all as the
same, shall be in effect from time-to-time ("Exchange Act"), the
- 8 -
Securities Act
of 1933, as amended, or any similar successor federal statute and
the rules and
regulations thereunder, all as the same shall be in effect from
time-to-time
("Securities Act"), the "take-over" or "blue sky" laws of the
various states,
the Hart-Scott-Rodino Antitrust Improvement Acts of 1976 and the
rules and
regulations thereunder ("Hart-Scott-Rodino Act") and any required
foreign
regulatory approvals, no notice to, filing with, or
authorization, consent or
approval of any domestic or foreign public body or authority is
necessary for
the consummation by Seller of the transactions contemplated by
this Agreement.
2.7 SUBSIDIARIES. Seller does not own or control,
directly or
indirectly, any interest in any other corporation, association,
or other
business entity. Seller is not a participant in any joint
venture, partnership,
or similar arrangement.
2.8 BROKERS AND FINDERS. Seller has not engaged any
broker, finder or
investment banker in connection with this Agreement or the
transactions
contemplated hereby.
2.9 PROXY STATEMENT/SCHEDULE 13(D). None of the
information supplied
or to be supplied by Seller or any of its agents, representatives
or affiliates
for inclusion, or included or incorporated by reference in (a)
any proxy
statements filed by the Company with the Securities and Exchange
Commission (the
"Commission") or any amendment or supplement thereto, (b) any
Schedule 13(D) or
any amendment or supplement thereto filed by Seller, Purchaser,
the Holding
Company or Company, or any of its agents, representatives or
affiliates, or
(c) any other documents to be filed with the Commission, or any
other regulatory
agency in connection with the transactions contemplated hereby by
Seller,
Purchaser, the Holding Company or Company, or any of its agents,
representatives
or affiliates, will, insofar as such Schedule 13(D) and documents
relate to
Seller, its affiliates, agents and representatives, at the
respective time such
Schedule 13(D) and documents are filed, be false or misleading
with respect to
any material fact, or omit to state any material fact necessary
in order to make
the statements therein, at the time and in light of the
circumstances under
which they were made, not false or misleading. The Schedule
13(D) and any
- 9 -
related documents required in connection with the transactions
contemplated
hereunder, will comply as to form and all material respects with
the
requirements of law insofar as such Schedule 13(D) and documents
relate to
Seller, its affiliates, agents and representatives.
2.10 PERMITS. Seller has all franchises, permits,
licenses and any
similar authority necessary for the conduct of its business as
now being
conducted by it, the lack of which could materially and adversely
effect
Seller's ability to perform its obligations under this Agreement;
and believes
it can obtain, without undue burden or expense, any similar
authority. Seller
is not in default under in any material respect under any such
franchises,
permits, licenses or similar authority.
2.11 LITIGATION. There is no suit, action, proceeding
or investigation
pending or currently threatened against Seller or any of its
affiliates, agents
or representatives that questions the validity of this Agreement
or any
documents, instruments or ancillary agreements in connection
therewith, or the
right of Seller to sell and convey the Shares and enter into such
agreements or
to consummate the transactions contemplated hereby or thereby, or
that might
result, either individually or in the aggregate in any material
adverse change
in the assets, business or property, prospects or financial
condition of Seller,
or in any material change in the current equity ownership of
Seller. Seller is
not a party, or to the best of its knowledge, named in any order,
writ,
injunction, judgment, or decree of any court, government agency
or
instrumentality. There is no action, suit or proceeding by
Seller currently
pending or that Seller currently intends to initiate.
2.12 ACCURACY OF INFORMATION. Except to the extent of
any subsequent
correction or supplement with respect thereto prior to the date
hereof, the
written statements, certificates, schedules, lists or any other
written
information furnished by or on behalf of Seller to Purchaser in
connection with
this Agreement, when considered as a whole, do not contain and
will not contain
any untrue statement of any material fact; and do not omit or
will not omit to
state a material fact necessary in order to make the statements
herein or
therein in light of the circumstances in which they were made,
not misleading.
- 10 -
Each document delivered by Seller to Purchaser is a true and
complete copy of
such document, unmodified except by another document delivered to
Purchaser.
Notwithstanding the foregoing, a mere inclusion on any particular
items of
information or statement of fact and any such written information
furnished by
or on behalf of Seller in connection with this Agreement, even if
coupled with a
representation or warranty to the effect that such written
information is
inclusive of all material information or statements of fact with
respect to the
subject matter thereof, shall not, without more, give rise to any
implication or
constitute any admission that such particular items or statements
are material.
Provided, however, Seller agrees to disclose to Purchaser any
such material
facts and information with respect to the foregoing within its
knowledge.
2.13 INVESTMENT INTENT. With respect to the Note being
given by
Purchaser to Seller as [partial] consideration for the Purchase
Price, Seller
hereby acknowledges, confirms and represents that in accepting
the Note as
[partial] consideration for payment of the Purchase Price and for
payment of the
Reimbursement, the Note is being acquired for investment for
Seller's own
account, not as a nominee or agent, and not with a view to the
resale or
distribution of any part thereof and that Seller has no present
intention of
selling, assigning, transferring, conveying or granting any
participation in or
otherwise distributing the Note. Seller further acknowledges and
confirms that
it does not have any contract, undertaking, agreement or other
arrangement with
any person to sell, transfer, assign or grant participation to
any such person
or to any third party with respect to the Note.
2.14 RELIANCE UPON SELLER'S REPRESENTATIONS. Seller
acknowledges and
understands that the Note is not being registered under the
Securities Act on
the ground that the sale and transfer provided for in this
Agreement with
respect to the Note and the issuance of the Note hereunder is
exempt from
registration under the Securities Act pursuant to Section 4(2)
thereof and that
the Purchaser's reliance on such exemption is predicated on
Seller's
representations as set forth herein.
2.15 RECEIPT OF INFORMATION. Seller believes that it
has received all
of the information it considers necessary or appropriate for
- 11 -
deciding whether to
accept the Note as partial consideration for the Purchase Price.
Seller further
represents that it has had an opportunity to ask questions,
receive answers and
information from the Purchaser regarding the business, assets and
properties,
prospects and financial condition of Purchaser and to obtain
additional
information (to the extent Purchaser possessed such information
or could acquire
it without unreasonable effort or expense) necessary to verify
the accuracy of
any information furnished to Seller or to which Seller had
access. The
foregoing, however, does not limit or modify the representations
and warranties
of Purchaser provided in SECTION 3 of this Agreement, nor the
right of Seller to
rely upon such representations and warranties.
2.16 RESTRICTED SECURITIES. Seller acknowledges and
understands that
in accepting the Note as [partial] consideration for the Purchase
Price, the
Note is characterized as "Restricted Securities" under applicable
Federal
securities laws, inasmuch as it is being acquired from Purchaser
in a
transaction not involving a public offering and that under such
laws and
applicable regulations, such securities may be sold without
registration under
the Securities Act, only in limited circumstances. In this
connection, Seller
represents that it is familiar with Securities Exchange
Commission Rule 144, as
promulgated by the Commission under the Securities Act as such
Rule 144 may be
amended from time to time or any similar successor rule that may
be promulgated
by the Commission, and understands the resale limitations imposed
thereby and by
the Securities Act.
2.17 INVESTMENT EXPERIENCE. Seller represents that it
is experienced
in evaluating and investing in securities of companies and
acknowledges that it
is able to fend for itself, can bear the economic risk of its
investment and has
such knowledge and experience in financial and business matters
that it is
capable of evaluating the merits and risks of the acceptance of
the Note as
partial consideration for the Purchase Price. Seller further
represents that it
has not been organized for the purpose of entering into this
transaction or
otherwise agreeing to the terms of the purchase and sale of the
Shares pursuant
to the terms, conditions and provisions of this Agreement,
without limitation,
accepting the Note as partial consideration for the Purchase
- 12 -
Price.
2.18 ACCREDITED INVESTOR.
2.18.1 The term "Accredited Investor" as defined in
Rule 501(a) of
Regulation D of the Securities Act means:
(a) a person or entity who is a general
partner, director or
executive officer and/or executive officer, director or general
partner of the
general partner of Purchaser;
(b) any bank as defined in Section 3(a)(2) of
the Securities
Act or any savings and loan association or other institution as
defined in
Section 3(a)(5)(A) of the Securities Act, whether acting in its
individual or
fiduciary capacity, any broker or dealer register pursuant to
Section 15 of the
Exchange Act; any insurance company as defined in Section 2(13)
of the
Securities Act; any investment company registered under the
Investment Company
Act of 1940 or a business development company as defined in
Section 2(a)(48) of
that Act; any Small Business Investment Company licensed by the
U.S. Small
Business Administration under Section 301(c) or (d) of the Small
Business
Investment Act of 1958, any plan established and maintained by a
state, its
political subdivisions, or any agency or instrumentality of a
state or its
political subdivisions, for the benefit of its employees, if such
plan has total
assets in excess of Five Million Dollars ($5,000,000); any
employee benefit plan
within the meaning of Title I of the Employee Retirement Income
Security Act of
1974, if the investment decision is made by a plan fiduciary, as
defined in
Section 3(21) of such Act, which is either a bank, savings and
loan association,
insurance company or registered investment advisor, or if the
employee benefit
plan has total assets in excess of Five Million Dollars
($5,000,000), or if a
self-directed plan, with investment decisions made solely by
persons that are
Accredited Investors;
(c) any private business development company
as defined in
Section 202(a)(22) of the Investment Advisors Act of 1940;
(d) any organizations described in Section
501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar
business trust or
partnership not formed for the specific purposes of acquiring the
securities
- 13 -
offered, with total assets in excess of Five Million Dollars
($5,000,000);
(e) any natural person who individual net
worth, or joint net
worth with that persons spouse at the time of its purchase
exceeds One Million
Dollars ($1,000,000);
(f) any natural person who had an individual
income in excess
of Two Hundred Thousand Dollars ($200,000) in each of the two
most recent years
or joint income with that person's spouse in excess of Three
Hundred Thousand
Dollars ($300,000) in each of those years and has a reasonable
expectation of
reaching the same income level in the current year;
(g) any trust with total assets in excess of
Five Million
Dollars ($5,000,000), not formed for the specific purposes of
acquiring the
securities offered, whose purchase is directed by a person who
has such
knowledge and experience in such financial and business matters,
that he/she is
capable of evaluating the merits and risks of the prospective
investment; or
(h) any entity in which all the equity owners
are Accredited
Investors.
As used in SECTION 2.18.1, the term "net worth" means
the excess of
total assets over total liabilities. For the purpose of
determining the
person's net worth, the principal residence owned by an
individual should be
valued at the fair market value, including the costs of
improvements, net of
current encumbrances. As used in this SECTION 2.18.1, "income"
means actual
economic income, which may differ from adjusted gross income for
income tax
purposes. Accordingly, Seller should consider whether it should
add any or all
of the following items to its adjusted gross income for income
tax purposes in
order to reflect more accurately its actual economic income: any
amounts
attributable to tax exempt income received, losses claimed as a
limited partner
in any limited partnership, deductions claimed for depletion,
contributions to
an IRA or Keogh Retirement Plan and alimony payments.
2.18.2 Seller further represents to Purchaser that
it is an
Accredited Investor.
2.19 LEGEND ON NOTE. It is acknowledged, understood and
agreed that
- 14 -
the Note shall bear the following legends.
(a) "THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED,
PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH
ACT, OR UNLESS
PURCHASER HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE,
SATISFACTORY TO
PURCHASER AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED, OR UNLESS
SOLD PURSUANT TO RULE 144 OF SUCH ACT"; and
(b) Any legend required by the laws of the
State of
California or any other applicable state laws.
3. REPRESENTATIONS AND WARRANTIES OF PURCHASER. Purchaser
hereby represents
and warrants to Seller that each and every statement contained in
this SECTION 3
is correct and complete as of the date of this Agreement and will
be correct and
complete as of the Closing Date.
3.1 ORGANIZATION/GOOD STANDING. Purchaser is a
California limited
partnership, duly organized, validly existing and in good
standing under the
laws of the State of California, has all requisite partnership
power to own and
operate its properties and assets and to carry on its business as
it is now
being conducted. Purchaser has the full power and authority and
all partnership
and related action has been taken as shall be necessary and
required to
consummate the transaction contemplated hereby.
3.2 AUTHORITY. Big O Tire Dealers of America, a
California
nonprofit mutual benefit corporation, as the general partner of
Purchaser, has
the full power, authority and capacity to sign and deliver this
Agreement and to
otherwise take all action on behalf of Purchaser as necessary and
required to
consummate the transactions contemplated hereby.
3.3 BINDING OBLIGATION OF PURCHASER. This Agreement
constitutes the
legally binding obligation of Purchaser in accordance with the
terms and
provisions hereof, subject as to its enforceability to
limitations imposed by
bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to
or effecting creditors' rights, generally and to the general
principals of
equity.
3.4 COMPLIANCE. Neither the execution and delivery of
this Agreement
- 15 -
by Purchaser nor the consummation of the transactions
contemplated hereby, nor
compliance by Purchaser with respect to any of the provisions
hereof will:
(1) violate, conflict with or result in the breach of any
provision of, or
constitute a default (or an event which with notice or lapse of
time are both
would constitute a default) under, or result in the termination
of, or
accelerate the performance by, or result in a right of
termination or
acceleration under, or result in a creation of any liens,
security interest,
charge or encumbrance upon any of the properties or assets of
Purchaser, under
any of the terms or provisions of (i) the partnership agreement
of Purchaser or
(ii) any material note, bond, mortgage, indenture, deed of trust,
license, lease
agreement, executory contract or arrangement or other instrument
or obligation
to which Purchaser is a party or to which it or any of its
properties or assets
may be otherwise subject or bound; or (2) subject to Purchaser's
obligation to
take all necessary steps to comply with the statutes or
regulations referred to
in the last sentence of this paragraph, violate any judgment,
ruling, writ,
injunction, decree, statute, rule or regulation applicable to
Purchaser, or any
of its respective properties or assets. Other than in connection
with
Purchaser's obligation to comply with the provisions of the
Exchange Act, the
Securities Act, the "take-over" or "blue sky" laws of the various
states, the
Hart-Scott-Rodino Act and any required foreign regulatory
approvals, no notice
to, filing with, or authorization, consent or approval of any
domestic or
foreign public body or authority is necessary for the
consummation by Purchaser
of the transactions contemplated by this Agreement.
3.5 SUBSIDIARIES. Purchaser does not own or control,
directly or
indirectly, any interest in any other corporation, association,
or other
business entity; except that some or all of the limited partners
of Purchaser
are members of the general partner of Purchaser which is a trade
organization
comprised of duly franchised retail Big O Tire Store Dealers and
formed for the
purpose of protecting and advancing their common business
interests on a united
basis. Purchaser is not a participant in any joint venture,
partnership, or
similar arrangement.
3.6 BROKERS AND FINDERS. Purchaser has not engaged any
broker, finder
- 16 -
or investment banker in connection with this Agreement or the
transactions
contemplated hereby, except for the engagement of KPMG Peat
Marwick LLP ("KPMG")
pursuant to those certain letter agreements dated October 18, and
19, 1994, and
May 11, 1995.
3.7 PROXY STATEMENT/SCHEDULE 13(D). None of the
information supplied
or to be supplied by Purchaser or any of its agents,
representatives or
affiliates for inclusion, or included or incorporated by
reference in (a) any
(if required) proxy statements filed by the Company with the
Commission or any
amendment or supplement thereto, (b) any Schedule 13(D) or any
amendment or
supplement thereto by Purchaser, Seller, the Holding Company or
the Company, or
any of its agents, representatives or affiliates, or (c) any
other documents to
be filed with the Commission, or any other regulatory agency in
connection with
the transactions contemplated hereby by Seller, Purchaser, the
Holding Company
or the Company, will, insofar as such Schedule 13(D) and
documents relate to
Purchaser, its affiliates agents and representatives, at the
respective time
such Schedule 13(D) and documents are filed, be false or
misleading with respect
to any material fact, or omit to state any material fact
necessary in order to
make the statements therein, at the time and in light of the
circumstances under
which they were made, not false or misleading. The Schedule
13(D) and any
related documents required in connection with the transactions
contemplated
hereunder, will comply as to form and all material respects with
the
requirements of law insofar as such Schedule 13(D) and documents
relate to
Purchaser, its affiliates, agents and representatives.
3.8 PERMITS. Purchaser has all franchises, permits,
licenses and any
similar authority necessary for the conduct of its business as
now being
conducted by it, lack of which could materially and adversely
effect Purchaser's
ability to perform its obligations under this Agreement and
believes it can, if
required in order to perform its obligations hereunder, obtain,
without undue
burden or expense, any similar authority. Purchaser is not in
default under in
any material respect under any such franchises, permits, licenses
or similar
authority.
3.9 LITIGATION. There is no suit, action, proceeding or
investigation
- 17 -
pending or currently threatened against Purchaser or any of its
affiliates,
agents or representatives that questions the validity of this
Agreement or any
documents, instruments or ancillary agreements in connection
therewith, or the
right of Purchaser to enter into such agreements or to consummate
the
transactions contemplated hereby or thereby, or that might
result, either
individually or in the aggregate in any material adverse change
in the assets,
business or properties, prospects or financial condition of
Purchaser, or in any
material change in the current equity ownership of Purchaser.
Purchaser is not
a party, or to the best of its knowledge, named in any order,
writ, injunction,
judgment, or decree of any court, government agency or
instrumentality. There
is no action, suit or proceeding by Purchaser currently pending
or that
Purchaser currently intends to initiate.
3.10 ACCURACY OF INFORMATION. Except to the extent of
any subsequent
correction or supplement with respect thereto prior to the date
hereof, the
written statements, certificates, schedules, lists or any other
written
information furnished by or on behalf of Purchaser to Seller in
connection with
this Agreement, when considered as a whole, do not contain and
will not contain
any untrue statement of any material fact; and do not omit or
will not omit to
state a material fact necessary in order to make the statements
herein or
therein in light of the circumstances in which they were made,
not misleading.
Each document delivered by Purchaser to Seller is a true and
complete copy of
such document, unmodified except by another document delivered to
Seller.
Notwithstanding the foregoing, a mere inclusion on any particular
items of
information or statement of fact and any such written information
furnished by
or on behalf of Purchaser in connection with this Agreement, even
if coupled
with a representation or warranty to the effect that such written
information is
inclusive of all material information or statements of fact with
respect to the
subject matter thereof, shall not, without more, give rise to any
implication or
constitute any admission that such particular items or statements
are material.
Provided, however, Purchaser agrees to disclose to Seller any
such material
facts and information with respect to the foregoing within its
knowledge.
4. COVENANTS OF SELLER. Seller hereby covenants and agrees
- 18 -
as follows:
4.1 NEGATIVE COVENANTS. During the period commencing as
of the date of
this Agreement and ending on the Closing Date, except as
otherwise expressly
provided herein, Seller shall not (1) issue, grant, sell or enter
into any
options, warrants, agreements, conversion rights, rights of first
refusal,
preemptive rights, or other rights to subscribe for, purchase or
otherwise
acquire the Shares; (2) create any material lien, charge,
security interest,
claim or encumbrance upon any of the Shares; (3) deed, sell,
transfer, assign,
license or otherwise dispose of any of the Shares; or (4)
otherwise take any
action which would materially effect its ability to perform its
obligations
under this Agreement.
4.2 COMPLIANCE, CONSENTS AND APPROVALS. Seller shall
(1) comply with
and obtain all necessary consents, waivers, authorizations and
approvals of all
governmental and regulatory authorities (including, without
limitation, such
compliances, consents, waivers, authorizations and approvals as
necessary or
required under the Exchange Act, the Securities Act, the "take
over" or "blue
sky" laws of the various states and the Hart-Scott-Rodino Act)
and of all other
persons, firms, partnerships, or corporations required in
connection with the
execution, delivery and performance by Seller of each and every
term, condition
and provision of this Agreement; and (2) diligently assist and
cooperate with
Purchaser in preparing and filing all documents required to be
submitted by
Purchaser to any governmental or regulatory authority in
connection with such
transactions (which assistance and cooperation shall include,
without
limitation, timely furnishing to Purchaser all information
concerning Seller
which, in the reasonable opinion of counsel to Purchaser, is
required to be
included into the documents) and in obtaining any governmental
and regulatory
authorities, consents, waivers, authorizations or approvals which
may be
required to be obtained by Purchaser in connection with the
transactions
contemplated by this Agreement.
4.3 NEGOTIATIONS. Following the execution of this
Agreement by all
parties hereto, Seller nor any one acting on behalf of Seller,
shall, directly
or indirectly, encourage, solicit, engage in discussions or
negotiations with,
- 19 -
or provide any information to any person, firm, or other entity
or group (other
than Purchaser or its representatives) concerning any sale,
assignment or
transfer of the Shares or other similar transaction involving the
Shares.
Seller agrees to promptly communicate to Purchaser any inquiries
or
communications concerning any transactions which it may receive
or which it may
become aware of.
5. COVENANTS OF PURCHASER. Purchaser covenants and agrees as
follows:
5.1 NEGATIVE COVENANTS. During the period commencing as
of the date of
this Agreement and ending on the Closing Date, except as
otherwise expressly
provided herein, Purchaser shall take any action which would
materially effect
its ability to perform its obligations under this Agreement.
5.2 COMPLIANCE, CONSENTS AND APPROVALS. Purchaser shall
(1) comply
with and obtain all necessary consents, waivers, authorizations
and approvals of
all governmental and regulatory authorities (including, without
limitation, such
compliances, consents, waivers, authorizations and approvals as
necessary or
required under the Exchange Act, the Securities Act, the "take
over" or "blue
sky" laws of the various states and the Hart-Scott-Rodino Act)
and of all other
persons, firms, partnerships or corporations required in
connection with the
execution, delivery and performance by Purchaser of each and
every term,
condition and provision of this Agreement; and (2) diligently
assist and
cooperate with Seller in preparing and filing all documents
required to be
submitted by Seller to any governmental or regulatory authority
in connection
with such transactions (which assistance and cooperation shall
include, without
limitation, timely furnishing to Seller all information
concerning Purchaser
which, in the reasonable opinion of counsel to Seller, is
required to be
included into the documents) and in obtaining any governmental
and regulatory
authorities, consents, waivers, authorizations or approvals which
may be
required to be obtained by Seller in connection with the
transactions
contemplated by this Agreement.
6. CONFIDENTIALITY. Seller and Purchaser acknowledge the
terms and
provisions of the confidentiality letter agreement attached
hereto as EXHIBIT D
(the "Confidentiality Letter Agreement") entered into by and
- 20 -
between Seller and
the general partner of Purchaser, reaffirm same, and agree to be
fully bound
thereby; and further agree that the terms and provisions of this
Agreement shall
be included within the meaning of "Information" as defined in the
Confidentiality Letter Agreement. For purposes of this
Agreement, the term
"Party" under the Confidentiality Letter Agreement shall be
deemed to include
Seller and Purchaser. In connection with the foregoing, Seller
and Purchaser
covenant and agree to treat and hold all Information contained in
this Agreement
and in an exhibit, schedule, instrument, ancillary agreement or
other document
relating hereto, strictly confidential, except as expressly
provided otherwise
in the Confidentiality Letter Agreement; and further covenant and
agree to
consult and confer with each other and each of their respective
counsel prior to
issuing any public announcement or statement with respect to this
Agreement and
the Plan of Merger contemplated by the Merger Agreement and any
other matter
relating to this Agreement.
7. CONDITIONS OF CLOSE WITH RESPECT TO SELLER. All
obligations of Seller
under this Agreement are subject to fulfillment, at or prior to
the Closing Date
of the following conditions, part or all of which may be waived
by Seller only
by written notice to Purchaser on or before the Closing Date.
7.1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF
PURCHASER. All
representations, warranties and covenants made by Purchaser in
this Agreement
shall be true, correct and complete on and as of the Closing
Date, the same
effect as those such representations, warranties and covenants
had been made on
and as of the Closing Date.
7.2 OBLIGATIONS AND CONDITIONS OF PURCHASER. Purchaser
shall have
performed and complied with all covenants and obligations
required by it under
this Agreement on or prior to the Closing Date.
7.3 CONSENTS AND APPROVALS/QUALIFICATIONS. All
compliances, consents,
waivers, authorizations, permits, approvals or qualifications of
any
governmental authority or regulatory body of the United States or
of every state
(including, without limitation, such Purchaser compliances,
consents, waivers,
authorizations, approvals and qualifications with respect to the
Exchange Act,
the Securities Act, the "take-over" or "blue sky" laws of the
various states and
- 21 -
the Hart-Scott-Rodino Act as specified in SECTION 5.3 hereof)
required in
connection with the execution, delivery and performance of this
Agreement, shall
have been duly obtained and shall be in full force and effect on
the Closing
Date.
7.4 NO VIOLATION OF ORDERS, ETC. There shall not be in
effect on the
Closing Date any statute, rule or regulation to create executive
order,
preliminary or permanent injunction or other order issued,
promulgated or
enacted by any federal, state or local government, or regulatory
authority or
court which declares this Agreement invalid in any respect or
prevents the
consummation of the transactions contemplated hereby; and no
action or
proceeding before any federal, state or local court, or
governmental or
regulatory authority shall be instituted or threatened by any
federal, state or
local government or governmental or regulatory authority or by
any other person,
entity or organization which seeks to prevent or delay the
consummation of the
transactions contemplated by this Agreement (including without
limitation, the
consummation of the proposed plan of merger pursuant to the terms
and provisions
of the Merger Agreement) or which challenges the validity or
enforceability of
this Agreement or any term or provision hereof.
7.5 PURCHASE PRICE. Purchaser shall have delivered to
Seller the
Purchase Price, and all documents and instruments in connection
therewith
including, without limitation, the Note and the Security
Agreement.
8. CONDITIONS OF CLOSE WITH RESPECT TO PURCHASER. All
obligations of
Purchaser under this Agreement are subject to fulfillment, at or
prior to the
Closing Date of the following conditions, part or all of which
may be waived by
Purchaser only by written notice to Seller on or before the
Closing Date.
8.1 REPRESENTATIONS, WARRANTIES AND COVENANTS OF SELLER.
All
representations and warranties and covenants made by Seller in
this Agreement
shall be true, correct and complete on and as of the Closing
Date, the same
effect as those such representations, warranties and covenants
had been made on
and as of the Closing Date.
8.2 OBLIGATIONS AND CONDITIONS OF SELLER. Seller shall
have performed
- 22 -
and complied with all covenants and obligations required by it
under this
Agreement on or prior to the Closing Date.
8.3 CONSENTS AND APPROVALS/QUALIFICATIONS. All
compliances, consents,
waivers, authorizations, permits, approvals or qualifications of
any
governmental authority or regulatory body of the United States or
of every state
(including, without limitation, such Seller compliances,
consents, waivers,
authorizations, approvals and qualifications with respect to the
Exchange Act,
the Securities Act, the "take-over" or "blue sky" laws of the
various states and
the Hart-Scott-Rodino Act as specified in SECTION 4.3 hereof)
required in
connection with the execution, delivery and performance of this
Agreement, shall
have been duly obtained and shall be in full force and effect on
the Closing
Date.
8.4 PROCEEDINGS AND DOCUMENTS. All corporate,
partnership and other
proceedings in connection with the transactions contemplated at
the Closing
(including without limitation, consummation of the proposed plan
of merger
pursuant to the terms of the Merger Agreement) and all documents
incident
thereto, shall be reasonably satisfactory in form and substance
to Purchaser's
counsel, which counsel shall have received all such counterpart
original or
certified or other copies of such documents as he/she may
reasonably request or
require.
8.5 NO VIOLATION OF ORDERS, ETC. There shall not be in
effect on the
Closing Date any statute, rule or regulation to create executive
order,
preliminary or permanent injunction or other order issued,
promulgated or
enacted by any federal, state or local government, or regulatory
authority or
court which declares this Agreement invalid in any respect or
prevents the
consummation of the transactions contemplated hereby; and no
action or
proceeding before any federal, state or local court, or
governmental or
regulatory authority shall be instituted or threatened by any
federal, state or
local government or governmental or regulatory authority or by
any other person,
entity or organization which seeks to prevent or delay the
consummation of the
transactions contemplated by this Agreement (including without
limitation, the
consummation of the proposed plan of merger pursuant to the terms
and provisions
- 23 -
of the Merger Agreement) or which challenges the validity or
enforceability of
this Agreement or any term or provision hereof.
8.6 CONSUMMATION OF PLAN OF MERGER. The consummation of
all
transactions necessary to consummate the plan of merger pursuant
to the terms
and provisions of the Merger Agreement, as amended, including,
without
limitation, the satisfaction of each and every condition
precedent set forth in
Article VI of the Merger Agreement.
8.7 ELEMENTS OF FINANCING. The Holding Company having
obtained
commitments for the required elements of financing in connection
with the merger
transaction contemplated under the terms and provisions of the
Merger Agreement
on terms and conditions satisfactory to the Holding Company in
its sole
discretion, including by way of example the following: (i)
obtaining a
commitment from a lender for the senior facility in the
approximate sum of Forty
Million Dollars ($40,000,000); (ii) obtaining a commitment from a
lender for a
senior subdebt facility in the approximate sum of Ten Million
Dollars
($10,000,000); (iii) Purchaser obtaining financing in the sum of
Five Million
Dollars ($5,000,000) and having arranged to purchase and acquire
shares of
common stock of Company from other existing shareholders on
negotiated terms by
way of promissory notes substantially similar to the Note
contemplated herein
and cash and other property which promissory notes and cash and
other property
(including the Note herein) total in the aggregate the sum of
Five Million
Dollars ($5,000,000) for a total of Ten Million Dollars
($10,000,000); and
(iv) existing lenders, creditors and other obligees of the
Company having agreed
to the financial arrangements contemplated in connection with the
proposed plan
of merger pursuant to the terms and provisions of the Merger
Agreement.
8.8 APPROVAL OF BIG O ESOP. The Big O ESOP shall have
provided its
approval as required by the terms of the governing documents of
the Big O ESOP
and applicable law of the proposed plan of merger contemplated
under the terms
and provisions of the Merger Agreement and the terms, provisions
and conditions
by which the Holding Company shall be formed, structured,
operated and governed,
including, without limitation, having obtained a fairness opinion
and
appropriate approval by the employees of the Company
- 24 -
participating in the Big O
ESOP; and that pursuant to the foregoing, holdings of at least
eighty percent
(80%) of the shares of Common Stock of the Company owned and held
by the Big O
ESOP shall have elected to roll over their existing ESOP account
into investment
in the securities of Holding Company pursuant to the terms and
provisions of the
plan of merger contemplated under the Merger Agreement.
8.9 CERTIFICATE OF GOOD STANDING. Seller shall have
delivered to
Purchaser certificates of partnership and tax good standing and
legal existence
of Seller as of no more than thirty (30) days prior to the
Closing Date from the
Secretary of State of California.
8.10 APPROVAL BY BOARD OF DIRECTORS OF COMPANY. The
Board of Directors
shall have approved the Holding Company's proposed plan of merger
on terms and
conditions satisfactory to the Holding Company, in its sole
discretion.
8.11 SHAREHOLDER APPROVAL. The plan of merger pursuant
to the terms
and conditions of the Merger Agreement shall have been approved
and adopted by
the shareholders of the Company.
9. INDEMNIFICATION.
9.1 INDEMNIFICATION BY SELLER. Seller agrees to and
shall indemnify,
protect, defend and hold harmless Purchaser from and against and
in respect of
any and all claims, losses, damages, costs, expenses,
obligations, charges,
recoveries, and deficiencies, including interest, penalties and
reasonable
attorneys' fees and other related expenses (collectively, the
"Seller Claims")
resulting from or arising out of or relating to any inaccuracy in
or breach of
any representation, warranty, covenant or agreement of Seller
contained in this
Agreement or in any schedule, certificate, exhibit, attachment or
other
instrument furnished or to be furnished by Seller pursuant to the
terms and
provisions of this Agreement.
9.2 INDEMNIFICATION BY PURCHASER. Purchaser agrees to
and shall
indemnify, protect, defend and hold harmless Seller from and
against and in
respect of any and all claims, losses, damages, costs, expenses,
obligations,
charges, recoveries, and deficiencies, including interest
penalties and
reasonable attorneys' fees and other related expenses
(collectively, the
- 25 -
"Purchaser Claims") resulting from or arising out of or relating
to any
inaccuracy in or breach of any representation, warranty, covenant
or agreement
of Purchaser contained in this Agreement or in any schedule,
certificate,
exhibit, attachment or other instrument furnished or to be
furnished by
Purchaser pursuant to the terms and provisions of this Agreement.
9.3 NOTICE OF ASSERTED LIABILITY. Promptly after
receipt by any party
hereto ("Indemnitee") of notice of any assertion of any claim
where the
commencement of any action against it in respect of which
Indemnitee or
reimbursement may be sought hereunder (an "Assertion"), such
Indemnitee shall
promptly give written notice (the "Claims Notice") to the other
party obligated
to provide indemnification pursuant to this SECTION 9 (the
"Indemnitor") of the
Assertion, but failure to so notify the Indemnitor shall not
relieve such
Indemnitor of its liability to the Indemnitee hereunder.
Indemnitor shall be
obligated to assume the defense of such Assertion at its own
expense with
counsel chosen by the Indemnitor in reasonably satisfactory to
the Indemnitee.
Notwithstanding that the Indemnitor shall be obligated to assume
the defense of
any Assertion, Indemnitee shall have the right to participate in
the
investigation and defense thereof, with separate counsel chosen
by such
Indemnitee but in such event the fees and expenses of such
counsel shall be paid
by such Indemnitee unless (i) Indemnitor shall agree to pay such
fees and
expenses, (ii) the Indemnitor shall have failed to assume the
defense of such
Assertion and to employ counsel satisfactory to such Indemnitee
or (iii) in the
reasonable judgment of the Indemnitee, based upon the advice of
its counsel, a
potential conflict of interest may exist between the Indemnitor
and the
Indemnitee with respect to such Assertion (in which case, such
Indemnitee
notifies the Indemnitor that such Indemnitee elects to employ
separate counsel
at the Indemnitor's expense, the Indemnitor shall not have the
right to assume
the defense of such Assertion on behalf of such Indemnitee.
Notwithstanding
anything to the contrary in this SECTION 9.3, the Indemnitor
shall not, without
the prior written consent of such Indemnitee, (a) settle or
compromise any
action or consent to the entering of any judgment which does not
include as an
unconditional term thereof the delivery by the claimant or
- 26 -
plaintiff to such
Indemnitee of a duly executed written release of such Indemnitee
from all
liability in respect of such Assertion, which release shall be
satisfactory in
form and substance to counsel to such Indemnitee, or (b) settle
or compromise
any action in a manner that, in the sole judgment of such
Indemnitee or its
counsel, may materially and adversely affect such Indemnitee
other than as a
result of money damages or other money judgments.
9.4 SURVIVAL. The indemnification, protection, defense
and hold
harmless obligations of the parties contained in this SECTION 9
shall survive
the closing or other termination of this Agreement.
10. MISCELLANEOUS PROVISIONS.
10.1 SURVIVAL OF REPRESENTATIONS, COVENANTS AND
WARRANTIES. The
respective representations, covenants and warranties of each of
the parties to
this Agreement shall survive the execution and delivery of this
Agreement, and
the closing or other termination of this Agreement.
10.2 SUCCESSORS AND ASSIGNS. Except as otherwise
provided herein, the
terms and conditions of this Agreement shall inure to the benefit
of and be
binding upon the respective successors and assigns of the parties
hereto.
Provided, however, that nothing contained in this Agreement,
whether express or
implied, is intended to confer upon any party other than the
parties hereto or
their respective successors and assigns any rights, remedies,
obligations or
liabilities under or by reason of this Agreement, except as
expressly provided
in this Agreement.
10.3 GOVERNING LAW. This Agreement shall be governed by
and construed
under the laws of the State of California as applied.
10.4 COUNTERPARTS. This Agreement may be executed in
two or more
counterparts each of which shall be deemed an original, but all
of which
together shall constitute one instrument.
10.5 EXPENSES. Each party shall bear its respective
expenses incurred
in connection with the preparation, execution and performance of
this Agreement
and the transactions contemplated hereby, including, without
limitation, all
fees and expenses of agents, representatives, counsel,
accountants and other
professional advisors.
- 27 -
10.6 NOTICES. Unless otherwise provided, all notices
and other
communications required or permitted under this Agreement shall
be in writing
and shall be mailed by U.S. first-class mail, postage prepaid,
sent by facsimile
or delivered personally by hand or by a nationally recognized
courier addressed
to the party to be notified at the address or facsimile number as
follows, or at
such other address or facsimile number as such party may
designate by ten (10)
days advance notice to the other party:
If to Purchaser: Big O Tire Dealers, L.P.
c/o Richard P. Waxman, Esq.
Wendel, Rosen, Black & Dean
P.O. Box 2047
Oakland, CA 94604-2047
With copy to: WENDEL, ROSEN, BLACK & DEAN
P.O. Box 2047
Oakland, CA 94604-2047
Attn: Richard P. Waxman, Esq.
If to Seller: ______________________________
______________________________
______________________________
______________________________
______________________________
With copy to: ______________________________
______________________________
______________________________
______________________________
All such notices and other written communication shall be
effective on the date
of mailing, facsimile transfer or delivery.
10.7 ENTIRE AGREEMENT. This Agreement together with all
schedules,
exhibits, attachments, instruments and documents referred to
herein constitute
the entire agreement among the parties and neither party shall be
liable or
bound to the other party in any manner by any warranties,
representations or
covenants except as specifically set forth herein or therein.
10.8 WAIVERS, AMENDMENTS AND REMEDIES. This Agreement
may be amended
to, preceded, cancelled, renewed or extended, and the terms
hereof may be
waived, only by a written instrument signed by Purchaser and
Seller or, in the
case of a waiver, by the party waiving compliance. No delay on
the part of any
party in exercise any right power or privilege hereunder shall
operate as a
waiver thereof; nor shall any waiver on the part of any party of
any such right,
power or privilege, or any single or partial exercise of any such
right, power
- 28 -
or privilege preclude any further exercise thereof or the
exercise of any other
such right, power or privilege. The rights and remedies herein
provided are
cumulative and are not exclusive in any rights or remedies that
any party may
otherwise have at law or in equity. The rights and remedies of
any party based
upon, arising out of or otherwise in respect of any inaccuracy in
or breach of
any representation, warranty, covenant or agreement contained in
this Agreement
shall in no way be limited by the fact the act, omission,
occurrence or other
state of facts upon which any claim of any such inaccuracy or
breach is based
may also be the subject matter of any other representation,
warranty, covenant
or agreement contained in this Agreement (or in any other
agreement among the
parties herein as to which there is no inaccuracy or breach).
10.9 SEVERABILITY. If one or more provisions of this
Agreement are
held to be unenforceable under applicable law, such provisions
shall be excluded
from this Agreement and the balance of the Agreement shall be
interpreted as if
such provision were so excluded and shall be unenforceable in
accordance with
its terms.
10.10 HEADINGS/RECITALS/EXHIBITS. The section headings
in this
Agreement are solely for convenience of reference and do not
affect the meaning
or interpretation of this Agreement or any term or provision
hereof. The
recitals set forth in the introductory paragraphs hereof and each
exhibit,
schedule or other attachment referred to in this Agreement and
attached hereto
from an integral part of this Agreement are incorporated herein
by this
reference and made a part hereof.
10.11 KNOWLEDGE. Where any representation, warranty or
statement
contained in this Agreement or in any certificate or document
delivered in
connection with this Agreement is expressly qualified to the
knowledge of the
person making such representation, warranty or statement, it
shall mean the
knowledge of such person actually possesses by having made a
reasonable inquiry
as to the matters which are the subject thereof.
10.12 NECESSARY ACTION. Each of the parties will use
its reasonable
efforts to take all actions and to do all things as shall be
necessary, proper
or advisable to consummate and make effective the transactions
contemplated by
- 29 -
this Agreement.
10.13 TIME. Time is of the essence of this Agreement.
10.14 ATTORNEYS' FEES.
(a) If any action at law is necessary to enforce or
interpret the
terms of this Agreement and all exhibits, schedules, instruments
and documents
referred to herein, the prevailing party shall be entitled to
reasonable
attorneys' fees, costs and disbursements in addition to any other
relief to
which such party may be entitled.
(b) Attorneys' fees incurred by any party to this
Agreement in
enforcing any judgment, order or action brought to resolve any
controversy
arising under this Agreement shall be recoverable by the
prevailing party. Such
rights to recover postjudgment attorneys' fees shall be separate
and distinct
from the right to recover attorneys' fees pursuant to subsection
(a) above. The
provisions of this paragraph 10.14(b) shall be severable from all
provisions of
this Agreement and shall survive any judgment and shall not be
deemed merged
into any judgment.
10.15 CALIFORNIA CORPORATE SECURITIES LAWS. SALE OF THE
SECURITIES
WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE
COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
ISSUANCE OF SUCH
SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION FOR SUCH
SECURITIES PRIOR TO SUCH QUALIFICATION IS UNLAWFUL. UNLESS THE
SALE OF
SECURITIES IS EXEMPT FROM QUALIFICATION BY SECTION 25100, 25102
OR 25105 OF THE
CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS
AGREEMENT ARE
EXPRESSLY CONDITIONED UPON SUCH QUALIFICATION BEING OBTAINED,
UNLESS THE SALE IS
SO EXEMPT.
IN WITNESS WHEREOF, Seller and Purchaser have caused this
Agreement to be
executed as of the date first above written.
"SELLER" "PURCHASER"
____________________________ BIG O DEALERS, L.P.
By: BIG O TIRE DEALERS OF AMERICA
By__________________________ Its: General Partner
Name:_______________________
Title:______________________
By________________________________
- 30 -
Wesley Stephenson
Its: President
By____________________________________
Name:_________________________________
Title:__________________________________
- 31 -
"PURCHASER"
BIG O DEALERS, L.P.
By: BIG O TIRE DEALERS OF AMERICA
Its: General Partner
By____________________________________
Wesley Stephenson
Its: President
- 32 -
EXHIBIT A
MERGER AGREEMENT
EXHIBIT B
NOTE
EXHIBIT C
SECURITY AND PLEDGE AGREEMENT
EXHIBIT D
CONFIDENTIALITY LETTER
STOCK PURCHASE AGREEMENT
______________, 1995
- 33 -
<PAGE>
EXHIBIT (c)(3)
DRAFT OF SUBSCRIPTION AGREEMENT
This Agreement for Subscription of Common Stock ("Agreement") is entered
into as of the __ day of November, 1995, by and between BOTI Holdings, Inc., a
Nevada corporation ("Issuer"), and Big O Dealers L.P., a California limited
partnership ("Subscriber").
RECITALS:
A. Issuer desires to issue to Subscriber, and Subscriber desires to
subscribe to and purchase from Issuer a total of Five Hundred Sixty-Nine
Thousand Eight Hundred One (569,801) shares (the "Shares") of the common stock,
par value $0.01 of Issuer (the "Common Stock") pursuant to the terms contained
in this Agreement.
B. As payment for the Shares, Subscriber will transfer and convey to
Issuer pursuant to the terms of this Agreement _______ shares of common stock,
par value $0.10, of Big O Tires, Inc., a Nevada corporation, held by Subscriber
("Big O Common") valued at $16.50 per share, as well as cash in the amount of
___________, for an aggregate consideration of Ten Million Dollars
($10,000,000.00).
AGREEMENT:
NOW THEREFORE, in exchange for the mutual covenants and promises contained
herein, and for other valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, the parties hereby agree as follows:
1. PAYMENT OF SUBSCRIPTION PRICE. On the Closing Date (as defined in
Section 3), Subscriber shall pay to Issuer in immediately available funds a
total of ________________ ($ _________), and shall convey, transfer and assign
all of Subscriber's rights, title and interest in and to _____ shares of Big O
Common then held by Subscriber (collectively, the "Subscriber Payment").
2. ISSUANCE OF SHARES. Upon receipt of the Subscriber Payment, Issuer
shall issue, sell, transfer and convey to Subscriber the Shares.
3. CLOSING DATE. The Closing Date shall be the date which is one
business day prior to the "Effective Date" of the Agreement and Plan of Merger
by and between BOTI Holdings, Inc., BOTI Acquisition Corp., and Big O Tires,
Inc., dated July 24, 1995, as amended.
4. SUBSCRIBER'S REPRESENTATIONS AND WARRANTIES.
4.1. The Shares are being acquired for the Subscriber's own account (and
not for the account of others) for investment and not with a view to the
distribution or resale thereof.
4.2. Subscriber understands that it may not sell or otherwise dispose of
the Shares in the absence of either a registration statement under the
Securities Act of 1933 and applicable state securities laws or an exemption from
the registration provisions of the Securities Act of 1933 and applicable state
securities laws.
4.3. The certificates representing the Shares may contain a legend to the
effect of Section 4.2 above.
4.4. As of the Closing Date, the shares of Big O Common conveyed to Issuer
from Subscriber pursuant to Section 1, will be owned beneficially and of record
by Subscriber, free and clear of any liens, charges, pledges, security
interests, prior assignments, encumbrances and claims of any kind and nature
whatsoever. No such shares of Big O Common are subject to any restriction with
respect to their transferability, other than restrictions on transfer imposed
under applicable federal and state securities laws.
4.5. The execution and delivery of this Agreement, and the consummation of
the transactions contemplated hereby, will not result in the breach of any of
the terms and provisions of, or constitute a default under, or conflict with any
agreement, indenture or other instrument to which Subscriber is bound.
5. ISSUER'S REPRESENTATIONS AND WARRANTIES.
5.1. Issuer represents that the Shares shall be validly issued, fully
paid, and non-assessable.
5.2 The authorized capital stock of Issuer on the Closing Date will
consist of ___________ shares of Common Stock, of which _______ will be issued
and outstanding.
6. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Subscriber and Issuer contained in this Agreement shall survive
until the Closing Date.
7. MISCELLANEOUS.
7.1. This Agreement constitutes the complete agreement between Issuer and
Subscriber and shall supersede any prior or contemporaneous written or oral
agreements relating to the purchase of the Shares.
7.2. This Agreement shall be governed by and interpreted under the
internal laws, and not the choice of law provisions, of the State of Nevada.
7.3. This Agreement may be executed in one or more identical counterparts,
each of which shall be deemed to be an original and all of which together shall
be deemed to be one and the same instrument, and shall become effective when one
or more counterparts have been signed by each of the Parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the __ day of
November, 1995.
ISSUER: SUBSCRIBER:
BIG O HOLDINGS, INC., BIG O DEALERS, L.P.,
a Nevada corporation a California limited partnership
By: ______________________ By: ______________________
Name:_____________________ Its: Managing General Partner
Title:____________________ By: ____________________
Name: __________________
Title:___________ S_____
- 2 -
Draft of Form of Subscription Agreement
This Agreement for Subscription of Common Stock ("Agreement") is entered
into as of the __ day of November, 1995, by and between BOTI Holdings, Inc., a
Nevada corporation ("Issuer"), and _______________ ("Subscriber").
RECITALS:
A. Issuer desires to issue to Subscriber, and Subscriber desires to
subscribe to and purchase from Issuer a total of ____________________ (________)
shares (the "Shares") of the common stock, par value $0.01 of Issuer (the
"Common Stock") pursuant to the terms contained in this Agreement.
B. As payment for the Shares, Subscriber will transfer and convey to
Issuer pursuant to the terms of this Agreement ___________ shares of common
stock, par value $0.10, of Big O Tires, Inc., a Nevada corporation, held by
Subscriber ("Big O Common") valued at $16.50 per share.
AGREEMENT:
NOW THEREFORE, in exchange for the mutual covenants and promises contained
herein, and for other valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, the parties hereby agree as follows:
1. PAYMENT OF SUBSCRIPTION PRICE. On the Closing Date (as defined in
Section 3), Subscriber shall convey, transfer and assign all of Subscriber's
rights, title and interest in and to _____ certificated shares of Big O Common
then held by Subscriber, and _____ shares of Big O Common then held by
Subscriber which are subject to [the Big O Tires, Inc. Restricted Stock Plan]
(the "Subscriber Payment").
2. ISSUANCE OF SHARES. Upon receipt of the Subscriber Payment, Issuer
shall issue, sell, transfer and convey to Subscriber the Shares.
3. CLOSING DATE. The Closing Date shall be the date which is one business
day prior to the "Effective Date" of the Agreement and Plan of Merger by and
between BOTI Holdings, Inc., BOTI Acquisition Corp., and Big O Tires, Inc.,
dated July 24, 1995, as amended.
4. SUBSCRIBER'S REPRESENTATIONS AND WARRANTIES.
4.1. The Shares are being acquired for the Subscriber's own account (and
not for the account of others) for investment and not with a view to the
distribution or resale thereof.
4.2. Subscriber understands that it may not sell or otherwise dispose of
the Shares in the absence of either a registration statement under the
Securities Act of 1933 and applicable state securities laws or an exemption from
the registration provisions of the Securities Act of 1933 and applicable state
securities laws.
4.3. Subscriber acknowledges that ___ of the Shares are being issued to
Subscriber subject to the restrictions and limitations imposed by the [Issuer's
Restricted Stock Plan] .
4.4. The certificates representing the Shares may contain a legend to the
effect of Section 4.2 and to the extent applicable, Section 4.3 above.
4.5. As of the Closing Date, the shares of Big O Common conveyed to Issuer
from Subscriber pursuant to Section 1, will be owned beneficially and of record
by Subscriber, free and clear of any liens, charges, pledges, security
interests, prior assignments, encumbrances and claims of any kind and nature
whatsoever. No such shares of Big O Common are subject to any restriction with
respect to their transferability, other than restrictions on transfer imposed by
the [Big O Restricted Stock Plan], or imposed under applicable federal and state
securities laws.
4.6. The execution and delivery of this Agreement, and the consummation of
the transactions contemplated hereby, will not result in the breach of any of
the terms and provisions of, or constitute a default under, or conflict with any
agreement, indenture or other instrument to which Subscriber is bound, including
without limitation the [Big O Restricted Stock Plan].
5. ISSUER'S REPRESENTATIONS AND WARRANTIES.
5.1. Issuer represents that the Shares shall be validly issued, fully
paid, and non-assessable.
5.2. The authorized capital stock of Issuer on the Closing Dates will
consist of ___________ shares of Common Stock, of which _______ will be issued
and outstanding.
6. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations and
warranties of Subscriber and Issuer contained in this Agreement shall survive
until the Closing Date.
7. MISCELLANEOUS.
7.1. This Agreement constitutes the complete agreement between Issuer and
Subscriber and shall supersede any prior or contemporaneous written or oral
agreements relating to the purchase of the Shares.
7.2. This Agreement shall be governed by and interpreted under the
internal laws, and not the choice of law provisions, of the State of Nevada.
7.3. This Agreement may be executed in one or more identical counterparts,
each of which shall be deemed to be an original and all of which together shall
be deemed to be one and the same instrument, and shall become effective when one
or more counterparts have been signed by each of the Parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the __
day of November, 1995.
ISSUER: SUBSCRIBER:
BIG O HOLDINGS, INC., ________________________
a Nevada corporation
By: _______________________
Name: _____________________
Title: ____________________
BIG O TIRES, INC. SPECIAL MEETING
SCHEDULE 14A
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE SECURITIES
EXCHANGE ACT OF 1934
Filed by the Registrant [ ]
FILED BY THE PARTY OTHER THAN THE REGISTRANT [ ]
Check the appropriate box:
[ ] Preliminary Proxy Statement [ ]Confidential for use of the Commission Only
(as permitted by Rule 14a-6(e)(2))
[ ] Definitive Proxy Statement
[ ] Definitive Additional Materials
[ ] Soliciting Material Pursuant to Section 240.14a-11(c) or Section 240.14a-12
BIG O TIRES, INC.
(Name of Registrant as Specified in its Charter)
Payment of Filing Fee (Check the appropriate box):
[ ] $125 per Exchange Act Rules 0-11(c)(1)(ii), 14a-6(i)(1), or 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
[ ] $500 per each party to the controversy pursuant to Exchange Act Rule
14a-6(i)(3).
[X] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
(1) Title of each class of securities to which the transaction applies:
Common Stock, par value $0.10 per share.
(2) Aggregate number of securities to which transaction applies: 3,317,840
shares plus options to purchase 216,308 shares of common stock, par value $0.10
per share.
(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11 (Set forth the amount on which the filing fee
is calculated and state how it was determined): $16.50 in cash.
(4) Proposed maximum aggregate value of transaction: $56,699,686 (F1)
(5) Total fee paid: $11,339.94
[ ] Fee paid previously with preliminary materials.
[ ] Check box if any part of the fee is offset as provided by Exchange Act
Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.
(1) Amount Previously Paid:
(2) Form, Schedule or Registration Statement No.:
(3) Filing Party:
(4) Date Filed:
(F1) For purposes of calculating the filing fee only. This amount is based upon
the purchase of 3,317,840 shares of Common Stock of the Registrant at a price of
$16.0 in cash per share and the cancellation of options to purchase an aggregate
of 216,308 shares of Common Stock of the Registrant, which options have exercise
prices ranging from $0.32 to $15.88, in consideration for a payment equal to the
excess of $16.50 over the exercise prices multiplied by the number of shares
subject to such options. The amount of the filing fee, calculated in accordance
with Exchange Act Rule 0-11(c)(1), equals 1/50th of one percent of the proposed
cash payment to the holders of the Common Stock and options.
<PAGE>
PRELIMINARY COPY
BIG O TIRES, INC.
11755 East Peakview Avenue, Suite A
Englewood, Colorado 80111
To Our Stockholders:
You are invited to attend the Special Meeting of Stockholders of Big O
Tires, Inc. (the "Company") to be held at _________________________________, on
___________, 1996, at ___:___ _.m., Mountain Standard Time. At the Special
Meeting, you will be asked to consider and vote upon a proposal to approve the
Agreement and Plan of Merger, dated as of July 24, 1995, as amended (the "Merger
Agreement"), by and among the Company, BOTI Holdings, Inc., a Nevada corporation
(the "Parent"), and BOTI Acquisition Corp., a Nevada corporation and a wholly-
owned subsidiary of the Parent (the "Purchaser"), and the transactions
contemplated thereby. The Parent and the Purchaser were formed by certain
members of the Company's senior management and some of the Company's franchised
dealers to acquire the Company. The Merger Agreement is included in the
accompanying Proxy Statement as APPENDIX A. Pursuant to the terms of the Merger
Agreement, Purchaser will merge with and into the Company, with the Company
remaining as the surviving corporation (the "Merger"). The result of the Merger
will be that the Company will become a wholly owned subsidiary of the Parent and
each outstanding share (except for certain "Excluded Shares," as defined in the
accompanying Proxy Statement) of the Company's common stock, par value $0.10 per
share (the "Common Stock"), will be converted into the right to receive a cash
payment of $16.50, without interest (the "Merger Consideration"). The Merger
Consideration includes $0.01 per share for the redemption of rights issued
pursuant to the Company's Rights Agreement dated as of August 26, 1994.
Consummation of the Merger is subject to certain conditions, including, without
limitation, the approval and adoption of the Merger Agreement by holders of at
least a majority of the outstanding shares of Common Stock.
The Board of Directors of the Company (the "Board"), based on the unanimous
recommendation of the Investment Committee of the Board (the "Investment
Committee"), which consisted only of directors who were neither employees of the
Company nor franchised dealers participating in the acquisition, has determined
that the Merger is fair to, and in the best interests of, the Company and its
stockholders and has approved the Merger Agreement. The Board recommends that
you vote "FOR" approval of the Merger Agreement. PaineWebber Incorporated
("PaineWebber"), the financial advisor to the Investment Committee in connection
with the Merger, has rendered a written opinion to the Board to the effect that
the Merger Consideration is fair from a financial point of view to the holders
of the Common Stock (other than holders of Excluded Shares). You are urged to
read the Proxy Statement in its entirety for important information regarding the
Merger.
IT IS VERY IMPORTANT THAT YOU BE REPRESENTED AT THE SPECIAL MEETING, EVEN
IF YOU ARE NOT ABLE TO ATTEND IN PERSON. THE AFFIRMATIVE VOTE OF AT LEAST A
MAJORITY OF THE OUTSTANDING SHARES OF COMMON STOCK IS REQUIRED TO APPROVE THE
MERGER. CONSEQUENTLY, THE FAILURE TO RETURN A PROPERLY EXECUTED PROXY CARD OR
TO VOTE IN PERSON AT THE SPECIAL MEETING WILL HAVE THE SAME EFFECT AS A VOTE
AGAINST THE MERGER. IF INSTRUCTIONS ARE SPECIFIED ON A PROXY CARD, SUCH PROXY
CARD WILL BE VOTED IN ACCORDANCE THEREWITH, AND IF NO SPECIFICATIONS ARE MADE,
SUCH PROXY CARD WILL BE VOTED FOR THE MERGER AGREEMENT. PLEASE TAKE TIME TO
CONSIDER AND VOTE UPON THIS SIGNIFICANT MATTER.
Please mark, sign and date each proxy card you receive and return it
promptly in the enclosed, postage-paid envelope even if you plan to attend the
Special Meeting in person. Returning a marked proxy card will not prevent you
from voting in person at the Special Meeting, but will assure that your vote is
counted if you are unable to attend. If you wish to attend the Special Meeting
in person, you will need to present proof of your ownership of shares of Common
Stock. If you hold your shares through a bank, broker or other nominee, you
must obtain evidence of ownership from such nominee prior to your attendance at
the Special Meeting.
DO NOT SEND IN YOUR STOCK CERTIFICATES AT THIS TIME. YOU WILL RECEIVE
INSTRUCTIONS REGARDING EXCHANGING YOUR COMMON STOCK FOR THE MERGER CONSIDERATION
AFTER THE SPECIAL MEETING.
THIS TRANSACTION HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE FAIRNESS OR MERITS OF
SUCH TRANSACTION NOR UPON THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED
IN THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
Sincerely,
John E. Siipola
Chairman of the Board of Directors
<PAGE>
PRELIMINARY COPY
BIG O TIRES, INC.
11755 East Peakview Avenue, Suite A
Englewood, Colorado 80111
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD ON _______________, 1996
NOTICE IS HEREBY GIVEN that a Special Meeting of Stockholders (the "Special
Meeting") of Big O Tires, Inc., a Nevada corporation (the "Company"), will be
held at ___________________, on _____________, 1996, at __:__ _.m., Mountain
Standard Time, for the purpose of considering and voting upon a proposal to
approve the Agreement and Plan of Merger dated as of July 24, 1995, as amended
(the "Merger Agreement"), by and among the Company, BOTI Holdings, Inc., a
Nevada corporation (the "Parent"), and BOTI Acquisition Corp., a Nevada
corporation and a wholly-owned subsidiary of the Parent (the "Purchaser"), and
the transactions contemplated by the Merger Agreement and such other business as
lawfully may come before the Special Meeting.
As more fully described in the Proxy Statement, of which this notice forms
a part, pursuant to the Merger Agreement, the Purchaser will merge with and into
the Company, with the Company remaining as the surviving corporation (the
"Merger"). The result of the Merger will be that the Company will become a
wholly-owned subsidiary of the Parent and each issued and outstanding share
(except for certain "Excluded Shares," as defined in the Proxy Statement) of the
Company's Common Stock will be converted into the right to receive a cash
payment of $16.50, without interest (the "Merger Consideration"). The Merger
Consideration includes $0.01 per share for the redemption of rights issued
pursuant to the Company's Rights Agreement dated as of August 26, 1994.
Consummation of the Merger is subject to certain conditions, including, without
limitation, the approval and adoption of the Merger Agreement by holders of at
least a majority of the outstanding shares of the Company's Common Stock.
If the Merger is consummated, stockholders will not have appraisal or
dissenter's rights and consequently will be required to accept payment of the
Merger Consideration.
Only stockholders of record as of the close of business on ______________,
1995, will be entitled to notice of and to vote at the Special Meeting and at
any adjournment or postponement thereof.
THE AFFIRMATIVE VOTE OF THE HOLDERS OF AT LEAST A MAJORITY OF THE
OUTSTANDING SHARES OF THE COMPANY'S COMMON STOCK IS REQUIRED TO APPROVE THE
MERGER. IT IS IMPORTANT THAT YOUR SHARES ARE REPRESENTED AT THE SPECIAL MEETING
REGARDLESS OF THE NUMBER OF SHARES YOU OWN. EVEN IF YOU PLAN TO ATTEND THE
SPECIAL MEETING, YOU ARE URGED TO COMPLETE, SIGN AND DATE THE ENCLOSED PROXY
CARD AND RETURN IT IN THE ENVELOPE PROVIDED AS PROMPTLY AS POSSIBLE. IF YOU
ATTEND THE SPECIAL MEETING, YOU MAY VOTE EITHER IN PERSON OR BY PROXY. ANY
PROXY GIVEN MAY BE REVOKED BY YOU AT ANY TIME PRIOR TO THE EXERCISE THEREOF IN
THE MANNER DESCRIBED IN THE PROXY STATEMENT. IF YOU WISH TO ATTEND THE SPECIAL
MEETING IN PERSON, YOU WILL NEED TO PRESENT PROOF OF YOUR OWNERSHIP OF SHARES OF
COMMON STOCK.
PLEASE DO NOT SEND ANY STOCK CERTIFICATES AT THIS TIME.
YOU WILL RECEIVE INSTRUCTIONS REGARDING EXCHANGING YOUR COMMON
STOCK FOR THE MERGER CONSIDERATION AFTER THE SPECIAL MEETING.
BY ORDER OF THE BOARD OF DIRECTORS
Susan D. Hendee, Assistant Secretary
____________, 1995
<PAGE>
PRELIMINARY COPY
BIG O TIRES, INC.
11755 East Peakview Avenue, Suite A
Englewood, Colorado 80111
PROXY STATEMENT
___________________________
INTRODUCTION
This proxy statement is being furnished in connection with the solicitation
of proxies by the Board of Directors ( the "Board") of Big O Tires, Inc. (the
"Company") to be used at the Special Meeting of Stockholders (the "Special
Meeting") to be held at __________________________________________, on
______________, 1996, at __:__.m., Mountain Standard Time, and at any
adjournment or postponement thereof.
The purpose of the Special Meeting is to consider and vote upon a proposal
to approve an Agreement and Plan of Merger dated as of July 24, 1995, as
amended, (the "Merger Agreement") by and among the Company, BOTI Holdings, Inc.,
a Nevada corporation (the "Parent"), and BOTI Acquisition Corp., a Nevada
corporation and a wholly-owned subsidiary of the Parent (the "Purchaser"), and
the transactions contemplated by the Merger Agreement and such other business as
lawfully may come before the Special Meeting.
Pursuant to the Merger Agreement, the Purchaser will merge into and with
the Company (the "Merger"), with the Company remaining as the surviving
corporation. As more fully described herein under "The Merger Agreement," the
result of the Merger will be that the Company will become a wholly-owned
subsidiary of the Parent and each issued and outstanding share of common stock
of the Company, par value $0.10 per share (the "Common Stock"), except certain
Excluded Shares described herein, will be converted into the right to receive a
cash payment of $16.50, without interest (the "Merger Consideration"). The
Merger Consideration includes $0.01 per share for the redemption of rights
issued pursuant to the Company's Rights Agreement dated as of August 26, 1994
(the "Rights").
A group comprised of certain of the franchised dealers of the Company (the
"Dealers") and certain members of senior management of the Company ("Senior
Management") will utilize the Parent and the Purchaser for the purpose of
effecting the Merger. Those Dealers who have indicated that they will
participate in the acquisition and Senior Management are hereinafter sometimes
collectively referred to as the "Dealer Management Group." See "Directors and
Executive Officers of the Company" and "Information Pertaining to the Parent,
the Purchaser and Related Persons."
THE BOARD, AND THE INVESTMENT COMMITTEE OF THE BOARD (THE "INVESTMENT
COMMITTEE"), BOTH RECOMMEND THAT STOCKHOLDERS VOTE "FOR" APPROVAL OF THE MERGER
AGREEMENT. The Board believes that the Merger presents an opportunity to
maximize shareholder value. The Merger will allow the Company's stockholders to
receive a cash price representing a premium over the market prices of the Common
Stock prevailing prior to the July 24, 1995, announcement of the signing of the
Merger Agreement and over the approximately $11.20 per share book value of the
Company on September 30, 1995. PaineWebber Incorporated ("PaineWebber"), the
financial advisor to the Investment Committee in connection with the Merger, has
rendered its opinion to the Board to the effect that, as of the date of such
opinion, the Merger Consideration is fair, from a financial point of view, to
the holders of the Common Stock (other than holders of Excluded Shares). The
Board also considered the other matters discussed herein under "Special
Factors."
The affirmative vote of the holders of a majority of the Common Stock
outstanding on ______________, 1995 (the "Record Date") is required for approval
of the Merger Agreement. Only holders of record of shares of Common Stock on
the Record Date are entitled to notice of, and to vote at, the Special Meeting
and any adjournment or postponement thereof.
You are requested to sign and date the accompanying proxy card and promptly
return it to the Company in the enclosed postage-paid, addressed envelope, even
if you plan to attend the Special Meeting. Failure to return a properly
executed proxy card or to vote at the Special Meeting will have the same effect
as a vote against the Merger.
DO NOT FORWARD ANY STOCK CERTIFICATES AT THIS TIME. YOU WILL RECEIVE
INSTRUCTIONS REGARDING EXCHANGING YOUR COMMON STOCK FOR THE MERGER CONSIDERATION
AFTER THE SPECIAL MEETING.
The enclosed proxy card, the accompanying Notice of Special Meeting of
Stockholders and this Proxy Statement are being mailed to stockholders of the
Company on or about __________________, 1995.
<PAGE>
TABLE OF CONTENTS
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
General Information . . . . . . . . . . . . . . . . . . . . . . . . 5
The Parties . . . . . .. . . . . . . . . . . . . . . . . . . . . . . 5
The Date and Place of the Special Meeting . . . . . . . . . . . . . 5
No Appraisal or Dissenter's Rights. . . . . . . . . . . . . . . . . 6
The Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Exchange of Certificates. . . . . . . . . . . . . . . . . . . . . . 7
Recommendations for the Merger. . . . . . . . . . . . . . . . . . . 7
Opinion of Financial Advisor. . . . . . . . . . . . . . . . . . . . 7
Opinion of Financial Advisor to the ESOP. . . . . . . . . . . . . . 7
Purposes and Reasons For the Merger . . . . . . . . . . . . . . . . 8
Plans for the Company After the Merger. . . . . . . . . . . . . . . 8
Interests of Certain Persons in the Merger. . . . . . . . . . . . . 9
Accounting Treatment of the Merger. . . . . . . . . . . . . . . . . 9
Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . 10
Price Range of Company Common Stock and DiviDend History.. . . . . . 10
THE SPECIAL MEETING. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Record Date and Voting. . . . . . . . . . . . . . . . . . . . . . . 11
Vote Required to Approve the Merger . . . . . . . . . . . . . . . . 11
Proxy Information; Revocation . . . . . . . . . . . . . . . . . . . 11
Absence of Appraisal Rights and Right To Dissent.. . . . . . . . . . 12
Proxy Solicitation. . . . . . . . . . . . . . . .. . . . . . . . . . 12
SPECIAL FACTORS. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 12
The Merger. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 12
Background and Negotiations Regarding the Merger. . . . . . . . . . 12
Recommendation of the Board of Directors; the Company's Purpose
and Reasons for and Belief as to the Fairness of the Merger . . . 23
The Parent's Purposes and Reasons for the Merger. . . . . . . . . . 25
Opinion of Financial Advisor. . . . . . . . . . . . . . . . . . . . 25
Plans for the Company After the Merger. . . . . . . . . . . . . . . 29
Federal Income Tax Consequences . . . . . . . . . . . . . . . . . . 29
Accounting Treatment of the Merger. . . . . . . . . . . . . . . . . 31
Regulatory Approvals. . . . . . . . . . . . . . . . . . . . . . . . 31
Financing of the Merger . . . . . . . . . . . . . . . . . . . . . . 31
Expenses of the Merger. . . . . . . . . . . . . . . . . . . . . . . 32
PRINCIPAL STOCKHOLDERS OF THE COMPANY . . . . . . . . . . . . . . . . . . 33
SECURITY OWNERSHIP OF THE COMPANY'S MANAGEMENT . . . . . . . . . . . . . 33
PRICE RANGE OF COMPANY COMMON STOCK AND DIVIDEND HISTORY .. . . . . . . . 36
SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY . . .. . . . . . . . 37
THE MERGER AGREEMENT . . . .. . . . . . . . . . . . . . . . . . . . . . . 39
Parties to the Merger Agreement . . . . . . . . . . . . . . . . . . 39
Description of the Merger Agreement . . . . . . . . . . . . . . . . 39
Terms of the Merger . . . . . . . . . . . . . . . . . . . . . . . . 39
Stock Options . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Conditions to the Merger. . . . . . . . . . . . . . . . . . . . . . 40
Representations and Warranties. . . . . . . . . . . . . . . . . . . 41
Conduct of Business Pending Merger. . . . . . . . . . . . . . . . . 41
Additional Agreements.. . . . . . . . . . . . . . . . . . . . . . . 43
Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . 43
Modification and Waiver . . . . . . . . . . . . . . . . . . . . . . 44
Termination of the Merger Agreement . . . . . . . . . . . . . . . . 44
Exchange of Certificates. . . . . . . . . . . . . . . . . . . . . . 45
DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY. . .. . . . . . . . . . . 46
INTEREST OF CERTAIN PERSONS IN THE MERGER . . . . . . . . . . . . . . . . 50
Indemnification by the Parent and the Company . . . . . . . . . . . 51
INFORMATION PERTAINING TO THE PARENT,
THE PURCHASER AND RELATED PERSONS . . . . . . . . . . . . . . . . . . . . 52
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Certain Information Pertaining to BOTDA . . . . . . . . . . . . . . 53
Security Ownership of Management of BOTDA in Company.. . . . . . . . 55
Certain Past Contacts, Transactions or Negotiations with Company . . 56
RECENT TRANSACTIONS BY THE COMPANY IN THE COMMON STOCK . . . . . . . . . 57
DOCUMENTS INCORPORATED BY REFERENCE. .. . . . . . . . . . . . . . . . . . 57
STOCKHOLDER PROPOSALS.. . . . . . . . . . . . . . . . . . . . . . . . . . 58
APPENDIX A AGREEMENT AND PLAN OF MERGER DATED AS OF JULY 24, 1995, WITH
AMENDMENTS, BY AND AMONG BOTI ACQUISITION CORP., BOTI HOLDINGS,
INC. AND BIG O TIRES, INC.
APPENDIX B PAINEWEBBER INCORPORATED -- FAIRNESS OPINION
<PAGE>
SUMMARY
The following is a brief summary of information included elsewhere in this
Proxy Statement. The summary is necessarily incomplete and is qualified in its
entirety by the more detailed information in this Proxy Statement, its
Appendices and the documents incorporated by reference and referred to in this
Proxy Statement. Capitalized terms used and not defined in the summary have the
meanings as defined elsewhere in this Proxy Statement.
YOU SHOULD READ THE ENTIRE PROXY STATEMENT AND THE APPENDICES PRIOR TO
TAKING ANY ACTION WITH RESPECT TO THE MERGER PROPOSAL.
GENERAL INFORMATION
This Proxy Statement relates to the proposed merger of the Purchaser with
and into the Company pursuant to the Merger Agreement by and among the Company,
the Parent and the Purchaser. The result of the Merger will be that each holder
of Common Stock (other than Excluded Shares) will receive $16.50 per share in
exchange for such Common Stock.
THE PARTIES
BIG O TIRES, INC., a Nevada corporation (the "Company"), is engaged
primarily in the business of franchising Big O Tire retail stores (the "Retail
Stores") and supplying Retail Stores with tires and related automotive products
for sale. The Company also owns and operates Retail Stores and, on a limited
basis, engages in site selection and real estate development for Retail Stores.
The mailing address of the Company's principal executive offices and corporate
headquarters is 11755 East Peakview Avenue, Suite A, Englewood, Colorado 80111
and its telephone number is (303) 790-2800.
BOTI HOLDINGS, INC., a Nevada corporation (the "Parent"), is a holding
company organized in January 1995 to participate in the Merger and to acquire
all of the capital stock of the Company. See "Information Pertaining to the
Parent, the Purchaser and Related Persons." The Parent has engaged in no other
business activities since its inception other than those related to the
acquisition of the Company. The mailing address of the principal executive
offices of both the Parent and the Purchaser is the same as the Company's
address, 11755 East Peakview Avenue, Suite A, Englewood, Colorado 80111, and
their telephone number is (303) 790-2800.
BOTI ACQUISITION CORP., a Nevada corporation (the "Purchaser"), has been
organized as a wholly-owned subsidiary of the Parent for the purpose of
effecting the Merger and has engaged in no other business activities other than
those related to the acquisition of the Company. See "Information Pertaining to
the Parent, the Purchaser and Related Persons."
THE DATE AND PLACE OF THE SPECIAL MEETING
The Special Meeting is to be held at ________________________________, on
______________, 1996, at __:__.m., Mountain Standard Time. At the Special
Meeting and at any adjournment or postponement thereof, the stockholders of the
Company will be asked to consider and vote upon the proposal to approve the
Merger Agreement and the transactions contemplated thereby.
RECORD DATE; REQUIRED VOTE. As of ____________, 1995, the Record Date,
_________ shares of Common Stock were issued and outstanding, each of which is
entitled to one vote on each matter to be acted upon at the Special Meeting.
Only stockholders of record at the close of business on the Record Date will be
entitled to notice of and to vote at the Meeting. The presence of a majority of
the outstanding shares of Common Stock will constitute a quorum for purposes of
the Special Meeting. The affirmative vote of the holders of a majority of the
Common Stock outstanding on the Record Date is required for approval of the
Merger Agreement.
The failure to return a properly executed proxy card, to vote in person at
the Special Meeting or, with respect to shares held of record by a broker or
other nominee, to provide such broker or nominee with voting instructions
(resulting in a broker non-vote) or abstaining from voting, will have the same
effect as a vote against the Merger. Proxies may be revoked, subject to the
procedures described herein, at any time up to and including the date of the
Special Meeting. See "The Special Meeting -- Vote Required to Approve the
Merger."
NO APPRAISAL OR DISSENTER'S RIGHTS
Stockholders do not have appraisal or dissenter's rights in connection with
the Merger under Nevada law. Consequently, if the Merger is consummated, their
shares of Common Stock will be canceled and they will be required to accept the
Merger Consideration. See "The Special Meeting -- Absence of Appraisal Rights
and Right to Dissent."
THE MERGER
The Company, the Parent and the Purchaser have entered into the Merger
Agreement whereby the Purchaser will merge with and into the Company. The
Company will remain as the surviving corporation. The result of the Merger will
be that the Company will become a wholly-owned subsidiary of the Parent. With
the exception of shares of Common Stock held by Senior Management, shares of
Common Stock held by the Company's Employee Stock Ownership Plan (the "ESOP")
that are converted into securities of the Parent, and any shares of Common Stock
held by or under contract to be acquired by the Parent, the Purchaser or the
Company or any direct or indirect subsidiary thereof or any stockholder of the
Parent or the Purchaser (collectively the "Excluded Shares") which either shall
be canceled or converted into common stock of the Parent as described below,
each share of Common Stock will be canceled and converted into the right to
receive the Merger Consideration. Each issued and outstanding share of the
Purchaser will be converted into one share of Common Stock of the Company at the
Effective Time (as defined below), the separate corporate existence of the
Purchaser will cease and the name of the Company will remain "Big O Tires, Inc."
At the Effective Time each option to purchase shares of Common Stock held
by holders who are directors of the Company, except options held by Messrs.
Steven P. Cloward and John B. Adams (see "Information Pertaining to the Parent,
the Purchaser and Related Persons"), and, except as stated below, options held
by current and former employees of the Company who are not members of Senior
Management or directors of the Company, will be canceled. Each holder thereof
will be entitled to receive, in lieu of each share which such holder otherwise
would have received upon exercise of the option, cash equal to the extent (if
any) by which $16.50 exceeds the exercise price per share payable pursuant to
such option or such lower amount as is provided for in the plan pursuant to
which the option was granted. However, if the holder has agreed to convert or
exchange the options for securities of the Parent, no payment will be made upon
cancellation of the options. All of the Company's stock option, stock
appreciation or compensation plans or arrangements will be terminated as of the
Effective Time. See "The Merger Agreement -- Stock Options."
The effectiveness of the Merger is conditioned upon the satisfaction or
waiver of certain conditions. The conditions that have not yet been satisfied
or waived, include, without limitation, approval of the Merger by the holders of
a majority of the outstanding Common Stock (which is being sought pursuant to
this Proxy Statement) and the conversion of at least 80% of the shares of the
Common Stock held by the ESOP into the common stock of the Parent. If the
Merger is approved by the requisite vote of the Company's stockholders, and all
remaining conditions are satisfied or waived, the Merger will become effective
upon the filing of the Certificate of Merger with the Secretary of State of the
State of Nevada (the "Effective Time"). If the Merger is approved, the Company
expects to file the Certificate of Merger on or shortly after the date of the
Special Meeting. See "The Merger Agreement -- Description of the Merger
Agreement."
EXCHANGE OF CERTIFICATES
Upon consummation of the Merger, each share of Common Stock owned by the
stockholders of the Company, other than Excluded Shares, will be canceled and
converted into the right to receive the Merger Consideration. See "The Merger
Agreement" and APPENDIX A. If the Merger is consummated, the stockholders of
the Company will be required to surrender their stock certificates in proper
form as a condition to receipt of payment. Stock certificates should not be
surrendered with the proxies. Promptly after the Merger occurs, a transmittal
letter with instructions will be sent to stockholders to be used by them to
surrender their share certificates. See "The Merger Agreement -- Exchange of
Certificates."
RECOMMENDATIONS FOR THE MERGER
THE BOARD AND THE INVESTMENT COMMITTEE RECOMMEND THAT THE STOCKHOLDERS VOTE
FOR THE MERGER. The Board and the Investment Committee base their
recommendation on the following factors: (a) the terms and conditions of the
Merger Agreement that were determined by arms length negotiations between the
parties; (b) the assets, obligations, operations, earnings and prospects of the
Company and of the retail tire and automotive products industry generally; (c)
recent market prices for the Common Stock, recent trading activity and the fact
that the Merger Consideration to be paid to stockholders represents a premium
over the $14.375 closing sale price of the Common Stock on July 20, 1995, the
day prior to the Board's approval of the Merger Agreement, and over the $11.03
per share book value of the Company on June 30, 1995; (d) a comparison of the
approximately $11.20 per share book value of the Company on September 30, 1995,
to the Merger Consideration; (e) the results of their market testing to
determine whether there were other buyers for the Company; (f) a review of
possible alternatives to the sale of the Company, including continuing to
operate the Company as a publicly-owned entity and the recent attempts to locate
an alternate buyer; and (g) the written opinion of PaineWebber to the effect
that, as of the date thereof, the Merger Consideration was fair, from a
financial point of view, to the holders of Common Stock (other than holders of
Excluded Shares). See "Special Factors."
OPINION OF FINANCIAL ADVISOR
PaineWebber has acted as financial advisor to the Company in connection
with the Merger. PaineWebber assisted the Investment Committee in its
negotiation of the terms of the Merger Agreement and assisted the Board in its
examination of the fairness, from a financial point of view, to the holders of
Common Stock (other than holders of Excluded Shares) of the Merger
Consideration. PaineWebber has delivered a written opinion stating that, as of
the date thereof, the Merger Consideration was fair, from a financial point of
view, to the holders of Common Stock (other than holders of Excluded Shares).
The full text of the written opinion of PaineWebber, which sets forth the
assumptions made, procedures followed, matters considered and limitations on the
review undertaken, is attached as APPENDIX B to this Proxy Statement.
STOCKHOLDERS OF THE COMPANY ARE URGED TO READ SUCH OPINION CAREFULLY IN ITS
ENTIRETY. See "Special Factors -- Opinion of Financial Advisor."
Opinion of Financial Advisor to the ESOP
The Merger Agreement also requires that the financial advisor to the ESOP
deliver an opinion that the consideration to be received by the participants in
the ESOP who elect to convert the Common Stock allocated to their accounts in
the ESOP into an investment in the common stock of the Parent, is fair from a
financial point of view to such participants. On ________, George K. Baum &
Company delivered its written opinion to the ESOP stating that the consideration
to be provided pursuant to such conversion is fair to the ESOP participants from
a financial point of view. See "Special Factors."
PURPOSES AND REASONS FOR THE MERGER
The Company's purpose and reason for the Merger are to allow the
stockholders of the Company to sell their shares in the Company at a price that
the Investment Committee and Board believe is fair to and in the best interest
of such stockholders. After a stockholder proposal that recommended that the
Board engage the services of a nationally recognized investment banker to
explore all alternatives to enhance the values of the Company was approved in
June 1994, the Company began immediately considering various alternatives to
enhance stockholder value. The timing of the Merger has been determined based
on the time required to review various alternatives to enhance stockholder value
for the Company, to solicit indications from persons who might be interested in
acquiring the Company, to negotiate the terms of the Merger Agreement, to allow
the Dealer Management Group to obtain financing, and to obtain the requisite
stockholder and other approvals.
The Parent is engaging in the Merger in order to concentrate the ownership
of the Company in those parties who will be actively engaged in its operation,
will have a long-term perspective and will be highly motivated toward the
building of a successful operation. The Parent's desire to effect the Merger is
based upon the expected realization of the Merger benefits described in the
following paragraph. Having identified those expected benefits of the Merger,
the Parent believes that the achievement of those benefits should be pursued at
the present time because the Company's Investment Committee has for
approximately 18 months been exploring strategic alternatives which, if
accomplished, would either make the acquisition of the Company by the Parent
impossible or unattractive.
The Parent believes that the Company, which will be a wholly-owned
subsidiary of the Parent after the Merger, will benefit from the Merger because
(i) the Company's management will be free to devote itself to building long-term
values for the Company without concern that such efforts may adversely affect
short-term results and the market price for the Common Stock; (ii) the Merger
will eliminate the need for the Company to comply with the reporting
requirements of the Securities Exchange Act of 1934 (the "Exchange Act"), to
maintain its current listing on the NASDAQ National Market System, and to
continue an investor relations program, the aggregate cost of which the Company
estimates amounts to approximately $190,000 annually (primarily consisting of
the preparation of the annual report to stockholders, accounting and legal fees
and investor program costs); (iii) the Company will be able to pursue the common
goals of the Dealers and the Company's employees; and (iv) the ownership of the
Company will be concentrated in those parties who will be actively engaged in
its operation, will have a long-term perspective and will be highly motivated
toward the building of a successful operation.
The form of the Merger was selected by the Parent to accomplish in a single
step its acquisition of the outstanding shares of Common Stock not already owned
by the Parent's stockholders. That structure was deemed preferable to a tender
offer, which probably would have resulted in less than 100% ownership by the
Parent unless followed by a subsequent merger. The Parent offered cash
consideration in the Merger because this was the only method which would
accomplish the goal of eliminating public ownership and establishing the desired
unification of the owners and operators of the Company.
PLANS FOR THE COMPANY AFTER THE MERGER
The Parent expects to continue the business and operations of the Company
substantially as they are currently being conducted by the Company and its
subsidiaries. However, the Dealer Management Group will continue to evaluate
the business and operations of the Company and will make such changes as are
deemed appropriate.
The Parent is exploring ways to raise cash for working capital and other
general corporate purposes in addition to the financing sources discussed under
the heading "Financing of the Merger". Although no agreement or arrangement has
been entered into with respect to any transaction, the types of transactions
under consideration by the Parent include the sale of certain parcels of
undeveloped real property adjacent to certain of the Company's regional service
center locations and certain Retail Store sites. There can be no assurance that
an agreement with respect to any transaction will be reached or, if reached,
that any such transaction will be consummated. It is anticipated that the
Company will not pay any cash dividends on its securities after the Merger.
Except for the possible merger or liquidation of several subsidiaries of
the Company into the Company, the Parent does not have any present plans or
proposals which relate to or would result in an extraordinary corporate
transaction, such as a merger, reorganization, liquidation, relocation of any
operations of the Company or any changes in the Company's present
capitalization, corporate structure or business or, except as described above,
the sale or transfer of a material amount of assets involving the Company or any
of its subsidiaries or the composition of the Company's management. The Parent
will from time to time be reviewing additional information and reviewing
possible options with respect to the Company and may propose or develop
additional or new plans or proposals or may propose the acquisition or
disposition of assets or other changes in the Company's business, corporate
structure, capitalization, management or dividend policy.
It is also anticipated that the officers (other than Messrs. Siipola and
Mehlfeldt) and most key employees of the Company will continue as employees of
the Company after the Merger. Those officers who are shareholders of the Parent
(other than solely as a result of their participation in the ESOP) will be
compensated at substantially the levels of compensation they received in 1995,
with the exception of Mr. Cloward, whose compensation will revert in 1996 to the
level he was receiving as of January 1, 1995, and with the exception of Ms.
O'Reilly, whose 1996 compensation will be based on her compensation level in
1995. It is expected that in most situations such persons will have
substantially equivalent positions with the Company. In connection with the
consummation of the Merger, Messrs. Siipola and Mehlfeldt will not continue as
employees, officers, nor directors of the Company. The Merger Agreement
provides that the board of directors of the Purchaser will become the board of
directors of the Company at the Effective Time.
INTERESTS OF CERTAIN PERSONS IN THE MERGER
Certain members of Senior Management are stockholders, officers and/or
directors of the Parent and, in conjunction with others in the Dealer Management
Group, are expected to be involved in the management and operation of the
Company following the Merger. Certain of these persons, by virtue of their
roles as directors of the Company, will, along with all other current directors
of the Company, be entitled to certain indemnification rights under the Merger
Agreement. Consequently, as to such indemnification rights and their
participation in the Parent, their interests may be deemed to be separate from
or adverse to the interests of the remaining stockholders. As of the Record
Date, Senior Management held of record ________ shares of Common Stock or ____%
of the issued and outstanding Common Stock. It is expected that the shares of
Common Stock owned by these members of Senior Management will be voted in favor
of the Merger. See "Information Pertaining to the Parent, the Purchaser and
Related Persons" and "The Merger Agreement."
ACCOUNTING TREATMENT OF THE MERGER
The Merger will be treated, for financial statement purposes, as a sale by
the Company's stockholders to Parent for cash. Accordingly, no gain or loss
will be recognized by the Company as a result of the Merger. The Merger will be
accounted for by the Parent as a purchase.
FEDERAL INCOME TAX CONSEQUENCES
The receipt of cash by a stockholder of the Company pursuant to the Merger
Agreement will be a taxable transaction to such stockholder for federal income
tax purposes and may also be a taxable transaction under applicable state, local
or other laws. Each stockholder is urged to consult his or her own tax advisor
as to the particular tax consequences to such stockholder. See "Special Factors
- -- Federal Income Tax Consequences."
PRICE RANGE OF COMPANY COMMON STOCK AND DIVIDEND HISTORY
The shares of Common Stock are traded on the NASDAQ National Market System
under the symbol "BIGO." The following table sets forth the high and low
prices, as reported by the NASDAQ National Market System, for each quarter
commencing January 1, 1993. These quotations have been rounded to the nearest
eighth, reflect inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions. Stockholders are urged to
obtain current quotations.
<TABLE>
HIGH
LOW
<S>
1993
First Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<C>
14 1/4
16 3/8
17 1/4
16 1/2
<C>
11 1/8
10 7/8
13 1/4
13 1/2
1994
First Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 3/4
16 3/4
16 3/4
17 7/8
12 3/4
13 1/8
14 1/2
15 1/4
1995
First Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Second Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Third Quarter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fourth Quarter (through ______, 1995). . . . . . . . . . . . . . . . . . . . . .
16 1/4
15 1/4
15 1/4
12 7/8
12 1/2
12 3/4
</TABLE>
On May 31, 1995, June 6, 1995 and July 21, 1995, the last days the Common
Stock traded prior to the public announcements that the Company had (i) received
the Merger proposal at $16.50 per share of Common Stock from Senior Management
and the Dealers (ii) the Investment Committee approved in principle the $16.50
per share Merger proposal, and (iii) the Company entered into the Merger
Agreement providing for the Merger of Purchaser into the Company at
consideration of $16.50 per share of Common Stock, the closing sale prices of
the shares of Common Stock (as reported on the NASDAQ National Market System)
were $13.75, $14.25, and $14.375, respectively. The closing sale price of the
shares of Common Stock (as reported on the NASDAQ National Market System) was
$____________ on _________________, 1995.
The Company has never paid any cash dividends on its shares of Common
Stock. See "Price Range of Company Common Stock and Dividend History" and
"Special Factors -- Financing of the Merger."
THE SPECIAL MEETING
GENERAL
This Proxy Statement is being furnished to holders of the Company's Common
Stock in connection with the solicitation of proxies by the Company's Board of
Directors for use at the Special Meeting to be held at
_______________________________________________, on ______________, 1996, at
_____ __.m., Mountain Standard Time, and at any adjournment or postponement
thereof.
At the Special Meeting, holders of the Company's Common Stock will consider
and vote upon a proposal to merge the Purchaser with and into the Company
pursuant to the Merger Agreement. The result of the Merger will be that each
holder of Common Stock (other than the Excluded Shares) will receive $16.50 per
share in exchange for such Common Stock.
Information contained in this Proxy Statement with respect to the Parent,
the Purchaser, and plans for the Company after the consummation of the Merger
has been provided by the Parent. All other information contained herein has
been provided by the Company.
RECORD DATE AND VOTING
The Record Date for determination of the Company's stockholders entitled to
notice of and to vote at the Special Meeting has been fixed as the close of
business on ________________, 1995. Accordingly, only holders of record of
shares of Common Stock on the Record Date will be entitled to notice of and to
vote at the Special Meeting. As of the Record Date, the outstanding voting
securities of the Company consisted of _________ shares of Common Stock that
were held of record by _____ holders. Each stockholder of record as of the
Record Date is entitled to one vote on each matter for each share then held.
The holders of a majority of the issued and outstanding shares of Common Stock
attending the meeting in person or by proxy will constitute a quorum for the
conduct of business at the Special Meeting, and all adjournments and
postponements thereof, notwithstanding that less than a quorum may remain after
commencement of the Special Meeting.
VOTE REQUIRED TO APPROVE THE MERGER
The affirmative vote of the holders of a majority of the Common Stock
outstanding on the Record Date is required for approval of the Merger Agreement.
Consequently, the failure to return a properly executed proxy card or to vote in
person at the Special Meeting will have the same effect as a vote against the
Merger. Similarly, abstentions and "broker non-votes" (referring to instances
where a broker or other nominee physically indicates on the proxy that, because
it has not received instructions from beneficial owners, it does not have
discretionary authority as to certain shares of Common Stock to vote on the
Merger) will have the same effect as a vote against the Merger. The proxies
named in the enclosed proxy card may, at the direction of the Board, vote to
adjourn or postpone the Special Meeting to another time or place for the purpose
of soliciting additional proxies necessary for approval of the Merger.
PROXY INFORMATION; REVOCATION
Any stockholder has the power to revoke his or her proxy before its
exercise at the Special Meeting or any adjournment or postponement by (1) giving
written notice of such revocation to the Assistant Secretary of the Company,
Susan D. Hendee, 11755 East Peakview Avenue, Suite A, Englewood, Colorado
80111, prior to the Special Meeting; (2) giving written notice of such
revocation to the Assistant Secretary of the Company at the Special Meeting; or
(3) signing and delivering a proxy bearing a later date. The dates contained on
the forms of proxy presumptively determine the order of execution, regardless of
the postmark dates on the envelopes in which they are mailed. The mere presence
at the Special Meeting of a stockholder who has executed and delivered a valid
proxy will not revoke such proxy. The powers of the proxyholders with respect
to the shares of a particular stockholder will be suspended if the stockholder
executing the proxy is present at the Special Meeting and elects to vote in
person. Subject to such revocation or suspension, each properly executed proxy
received by the proxyholders will be voted at the Special Meeting (whether or
not instructions are specified thereon). If instructions are specified thereon,
such proxy will be voted in accordance therewith, and if no specifications are
made, such proxy will be voted for the Merger Agreement.
ABSENCE OF APPRAISAL RIGHTS AND RIGHT TO DISSENT
The Nevada General Corporation Law generally provides that a stockholder is
entitled to dissent from a merger and obtain payment of the fair value of such
stockholder's shares of stock in the event of merger to which the corporation,
in which the stockholder holds shares, is a party. However, there is no right
of dissent under the Nevada General Corporation Law with respect to a plan of
merger of a corporation the shares of any class of stock of which on the record
date were listed on a national securities exchange or designated as a national
market system security on an interdealer quotation system operated by the
National Association of Securities Dealers Inc. ("NASDAQ") unless the
stockholders will receive anything except cash and/or shares of the surviving
corporation in exchange for their shares. Because the Common Stock is quoted on
the NASDAQ National Market System and because of the composition of the Merger
Consideration, stockholders of the Company have no right to dissent upon
consummation of the Merger. Accordingly, if the Merger is consummated,
stockholders will have their rights as stockholders terminated and their shares
will be canceled and, except for stockholders holding Excluded Shares, will have
only the right to receive the Merger Consideration in exchange for such canceled
shares.
PROXY SOLICITATION
The cost of soliciting proxies will be borne by the Company. The Company
may request brokers, fiduciaries, custodians and nominees to send proxies, proxy
statements and other material to their principals at the expense of the Company.
In addition, directors, officers or other employees of the Company may, without
additional compensation therefor, solicit proxies in person or by telephone.
SPECIAL FACTORS
THE MERGER
The Company has entered into the Merger Agreement, a copy of which is
attached as APPENDIX A to this Proxy Statement, with the Parent and the
Purchaser. Pursuant to the terms of the Merger Agreement, the Purchaser will
merge with and into the Company with the Company continuing as the surviving
corporation. Upon consummation of the Merger, each outstanding share of Common
Stock (other than Excluded Shares) will be converted into the right to receive,
upon surrender of such share of Common Stock, the Merger Consideration.
Stockholders do not have any appraisal or dissenters rights under Nevada law.
See "The Special Meeting -- Absence of Appraisal Rights and Right to Dissent"
and "The Merger Agreement." At the same time, each share of the outstanding
common stock of the Purchaser, all of which is owned by the Parent, will be
converted into one share of Common Stock of the Company. Thus, after the
Merger, all of the then outstanding Common Stock of the Company will be owned by
the Parent.
BACKGROUND AND NEGOTIATIONS REGARDING THE MERGER
PRELIMINARY NOTE. Because of the close working relationship among Senior
Management, the Dealers and certain members of the Board, there were many
incidental conversations between representatives of Purchaser and
representatives of the Company relating to the Merger Agreement, often
coincidental to other conversations on business matters unrelated to the Merger.
The following discussion describes significant events during the negotiation of
the Merger Agreement and material issues discussed during the negotiation of its
terms.
SHAREHOLDER PROPOSAL. By letter dated December 20, 1993, Kenneth W. Pavia,
Sr., general partner of Balboa Investment Group, L.P. ("Balboa") which reported
that it then owned approximately 9.6% of the outstanding Common Stock, advised
the Company that he intended to introduce a proposal at the Company's 1994
Annual Shareholders' Meeting. The Company's management had several discussions
with Mr. Pavia concerning various aspects of Company operations and membership
of its Board during the several months before the Company received Mr. Pavia's
proposal. At his request, the following resolution (the "Shareholder Proposal")
and a supporting statement were included in the Company's proxy statement for
its 1994 Annual Meeting of Shareholders ("Annual Meeting").
"RESOLVED: That the shareholders of the Company recommend
and deem it desirable and in their best interest that the Board
of Directors immediately engage the services of a nationally
recognized investment banker to explore all alternatives to
enhance the values of the Company. Those alternatives should
include, but not be limited to, the possible sale, merger, or go-
private transaction involving the Company, or the return to
conducting business as a cooperative."
The Company included in its proxy statement a statement in opposition to
the Shareholder Proposal. At the Company's Annual Meeting held on June 8, 1994,
the Shareholder Proposal received the approval of holders of approximately 46%
of the then outstanding Common Stock. Approximately 38% of the then outstanding
Common Stock was voted against the Shareholder Proposal.
THE INVESTMENT COMMITTEE. Immediately following the Annual Meeting, the
directors of the Company who were not then employees of the Company met to form
the Investment Committee to begin the process of implementing the Shareholder
Proposal, including engaging an investment banking firm as provided in the
proposal. The Investment Committee consisted of Messrs. Carney, Johnston,
Mehlfeldt, Siipola, Weiger, and Wernholm, all of whom currently are and at that
time were directors of the Company and none of whom were employees of the
Company or owners of interests in franchised Retail Stores. Mr. Asher, a
director of the Company who owns an interest in a company that owns franchised
Retail Stores, was invited to participate as a non-voting member of the
Investment Committee.
In the ensuing 12 days, the members of the Investment Committee contacted
or were contacted by approximately 25 investment banking firms and merchant
banking firms to discuss providing assistance to the Company in implementing the
Shareholder Proposal. The Investment Committee met on June 20, 1994, to review
informal proposals received from three investment banking firms. At the
meeting, the Investment Committee determined to request formal presentations
from three investment banking firms and to request one additional firm to submit
information concerning its services.
On June 29, 1994, the Investment Committee met and heard presentations from
four investment banking firms, Donaldson, Lufkin & Jenrette Securities Corp.,
Kidder, Peabody & Co. Incorporated, PaineWebber, and Bear, Stearns & Co., Inc.
The Investment Committee met again on July 1, 1994, and selected
PaineWebber as the investment banker to advise the Investment Committee with
respect to carrying out the Shareholder Proposal. On July 5, 1994, the Company
issued a press release regarding the selection of PaineWebber and advised Mr.
Pavia of the selection of PaineWebber.
The Investment Committee met on July 13, 1994, with Steven P. Cloward,
President and then Chief Executive Officer, John B. Adams, Executive Vice
President and Chief Financial Officer, Philip J. Teigen, General Counsel and
Secretary, and Susan D. Hendee, Assistant Counsel and Assistant Secretary of the
Company, together with representatives of PaineWebber. At that meeting the
Investment Committee discussed the process by which PaineWebber would work with
the Investment Committee to analyze alternatives for enhancing the value of the
Company, how PaineWebber would conduct due diligence with respect to the Company
and other organizational matters relating to facilitating PaineWebber's
preparation of a report to the Investment Committee.
The Investment Committee, Mr. Adams, Mr. Cloward and Ms. Hendee met again
on July 27, 1994, with representatives of PaineWebber to hear a progress report
from PaineWebber with respect to its work. PaineWebber advised that it was
preparing financial analyses and developing a list of alternatives that might
enhance shareholder value.
In addition, the Company retained M. Kane & Company, Inc. ("Kane & Co.") in
May 1994 to assist in locating retail tire store chains that might be suitable
for acquisition by the Company. Kane & Co. discussed several possible
acquisitions with the Company, none of which resulted in substantive
negotiations with prospective acquisition candidates.
SHAREHOLDER RIGHTS PLAN. The Board had begun in early 1994 to consider
adopting a shareholder rights plan and other mechanisms designed to prevent the
acquisition of the Company under circumstances that would not result in its
shareholders realizing fair value for their Common Stock. On April 14, 1994,
the Board met with Holme Roberts & Owen LLC, Denver, Colorado ("Holme Roberts"),
special counsel, and with PaineWebber to review such mechanisms and to consider
adopting a shareholder rights plan which was intended to have the practical
effect of ensuring that a fair price would be paid to Company shareholders for
their shares in the event of an acquisition. At the April 14, 1994, Board
meeting, PaineWebber delivered to the Company a presentation containing
information about shareholder rights plans generally, certain publicly available
information about the Company and certain other companies in similar or
substantially similar businesses, and a range of implied stock prices for the
Common Stock in the year 2004 (the "2004 Estimated Range"). The 2004 Estimated
Range was made solely for use in determining the initial exercise price of the
rights to be issued under a shareholder rights plan, and was not intended in any
respect as an indicator of the Company's actual value. The analyses delivered
at the April 14, 1994, Board meeting have been filed as exhibits to the Schedule
13E-3 relating to the Merger filed by the Parent and the Company with the
Securities and Exchange Commission (the "Schedule 13E-3").
The Board met again on August 26, 1994, with representatives of Holme
Roberts and PaineWebber and, after additional consideration, adopted a
shareholder rights plan (the "Shareholder Rights Plan") and declared a dividend
of one right for each share of Common Stock outstanding on September 12, 1994,
and for each share of Common Stock issued thereafter. Under the Shareholder
Rights Plan, on the tenth day following the public announcement of the
acquisition of or an offer to acquire specified percentages of the Common Stock,
the rights, if not redeemed, would become exercisable. Under certain
circumstances, holders of the rights would be entitled to purchase, for half the
then current market price, Common Stock of the Company or of an entity acquiring
the Company. The Company also adopted changes to the Company Bylaws with
respect to shareholder meetings and proposals and director nominations. The
analyses delivered at the August 26, 1994, Board meeting have been filed as
exhibits to the Schedule 13E-3.
INITIAL PAINEWEBBER PRESENTATION. On September 12, 1994, the Investment
Committee, together with Messrs. Cloward and Adams and Ms. Hendee, met with
representatives of PaineWebber. PaineWebber provided a written presentation to
the Investment Committee as to strategic alternatives for the Company.
PaineWebber discussed the Company's operating plans and financial projections.
PaineWebber reviewed with the Investment Committee a share repurchase program
and an extraordinary dividend to shareholders which were not viewed as
advantageous in view of the substantial borrowing required and the adverse
effect of increased leverage on future operations of the Company. PaineWebber
also discussed with the Investment Committee the possibility of a leveraged
buyout by management and the acquisition of the Company by a strategic buyer or
a financial buyer, including a preliminary report as to the relative advantages
or disadvantages of such a combination given the Company's projections of future
performance and possible prices that a buyer might offer. The Investment
Committee discussed on a preliminary basis maintaining the Company as an
independent entity, including implementing critical elements of the Company's
business plan which were intended to enhance profitability. The PaineWebber
presentation to the Investment Committee of alternatives to enhance shareholder
value has been filed as an exhibit to the Schedule 13E-3.
PaineWebber reported that it had received informal inquiries from persons
expressing an interest in acquiring the Company. The Investment Committee
directed PaineWebber to conduct further discussion with those which had
expressed a preliminary interest so that the Investment Committee could select a
list of qualified potential buyers.
On September 13, 1994, the Investment Committee reported to the Board
concerning its activities. The Board determined that, in view of the
substantial activities of the Investment Committee, it would be advisable for
Mr. Mehlfeldt, who has significant experience in the tire industry, to serve
substantially full time assisting the Investment Committee in evaluating
strategic alliances, mergers, sales and acquisitions. On September 22, 1994,
Mr. Mehlfeldt entered into a consulting agreement with the Company reporting to
the Investment Committee. Mr. Mehlfeldt was paid fees of $47,250 in 1994 and
$3,750 in 1995. The amounts paid were based on the days for which Mr. Mehlfeldt
provided consulting services. The arrangement was terminated on February 15,
1995, when Mr. Mehlfeldt became an employee of the Company.
Also, at its September 13, 1994 meeting, the Board decided to invite Mr.
Pavia to join the Board as a director. In the event that Mr. Pavia declined the
invitation to join the Board, the Board authorized the Chairman of the
Investment Committee to invite Mr. Pavia to attend Investment Committee
meetings. Mr. Pavia did not join the Board, and on September 22, 1994, the
Company announced that Mr. Pavia would assist the Investment Committee in its
efforts to evaluate alternatives to enhance the Company's value. In September
1994, Mr. Pavia and Balboa signed a confidentiality agreement with the Company.
The Investment Committee next met on October 11, 1994, with Messrs. Adams,
Cloward, Teigen and Ms. Hendee, representatives of PaineWebber, and Mr. Pavia.
PaineWebber reported that it had conversations with persons who had expressed an
interest in acquiring the Company, including possible strategic buyers and
financial buyers. PaineWebber advised that all persons who had expressed an
interest had been supplied with confidentiality agreements as a condition to the
Company providing due diligence information.
THE AKH OFFER. On October 11, 1994, AKH Company, Inc. ("AKH"), which owns
retail tire dealerships and is based in California, sent the Company a letter
proposing a merger in which the Company would be acquired for a cash payment of
$18 per share, subject to due diligence, financing and various other conditions.
The AKH proposal also required a 90-day period of exclusivity during which the
Company could not carry on discussions or negotiations with any third parties
regarding a sale or combination of the Company. The Company had been approached
by AKH earlier in 1994 to determine the interest in the possible acquisition of
AKH by the Company. The Company had not pursued discussions with AKH at that
time after determining that many of AKH's retail stores were within territories
served by existing Company franchised Retail Stores.
The Company asked AKH to enter into a confidentiality agreement with the
Company, and, because of concerns about AKH's financial ability to acquire the
Company, to demonstrate its financial capacity to conclude a transaction. The
Company also advised AKH that it was unwilling to grant a period of exclusivity.
In mid-November, 1994, AKH and the Company entered into confidentiality
agreements. On November 1, 1994, AKH announced publicly that it had made a
proposal to acquire the Company for an unspecified amount of cash.
The Investment Committee met on October 24, 1994, with Mr. Adams, Ms.
Hendee, Mr. Teigen and representatives of PaineWebber. The Investment Committee
was advised that a group of Dealers had appointed a committee to review
alternatives available to the Dealers in acquiring the Company and that the
Dealers had retained KPMG Peat Marwick L.P. ("KPMG") to act as their financial
advisor. Mr. Adams advised the Investment Committee that certain members of
Senior Management were also investigating possible participation with certain of
the Dealers in an offer to purchase the Company, and that certain
representatives of Dealers and Senior Management had met to determine whether to
make an offer to the Company. He advised that KPMG and a representative of the
Dealers had signed confidentiality agreements and that Senior Management and the
Dealers had retained Gibson, Dunn & Crutcher, Denver, Colorado, as their legal
counsel. In view of the Dealers' interest in a possible transaction with the
Company, Mr. Asher, who has interests in, and beneficially owns interests in,
several Retail Stores, resigned from the Investment Committee.
Soon thereafter, the Investment Committee determined to retain Holme
Roberts as special counsel to the Investment Committee. Holme Roberts had
previously represented ad hoc committees of the Board and had from time to time
performed legal services for the Company, primarily in connection with adopting
its Shareholder Rights Plan, but was not regularly retained as counsel for the
Company.
The Investment Committee met on November 4, 1994, with representatives of
PaineWebber and Holme Roberts, and Mr. Pavia and Ms. Hendee. PaineWebber
advised the Investment Committee of contacts that it had made and discussions
that had occurred with ten possible strategic buyers and five financial buyers,
several of whom had expressed no interest in continuing discussions with the
Company.
The Investment Committee met again on November 17, 1994, with
representatives of PaineWebber, Holme Roberts, Mr. Pavia and Ms. Hendee.
Mr. Mehlfeldt and PaineWebber provided the Investment Committee with an update
as to discussions or contacts on the potential strategic and financial buyers
lists. The Investment Committee requested PaineWebber and Mr. Mehlfeldt to
intensify discussions with AKH and the Dealer Management Group and to follow-up
with one other party who had expressed a preliminary interest in an attempt to
bring the discussions to some form of resolution.
DEALER MANAGEMENT GROUP'S FIRST OFFER. On December 2, 1994, the Company
received a letter from the Dealer Management Group that proposed to commence
negotiations to acquire the outstanding shares of the Company for $18.50 per
share. The proposal was subject to various contingencies, including
participation in the buying group by at least 90% of the Common Stock held in
the ESOP and by the owners of 90% of franchised Retail Stores. The Dealer
Management Group also requested a period of exclusivity of 120 days during which
the Company would negotiate only with the Dealer Management Group.
The Investment Committee met on December 5, 1994, with Mr. Pavia and
representatives of PaineWebber and Holme Roberts to discuss the Dealer
Management Group offer. At that meeting, the Investment Committee also
discussed the status of the AKH offer and what implications, if any, acceptance
of the AKH offer might have on the Big O franchised dealers as a group. During
the meeting, PaineWebber and Mr. Mehlfeldt discussed with the Investment
Committee the status of contacts made by PaineWebber on behalf of the Company
with other prospective purchasers. Based upon this presentation, the Investment
Committee determined that only AKH and the Dealer Management Group continued to
evidence an active interest in a transaction to acquire the Company.
At that meeting, the Investment Committee also considered a request by the
Dealer Management Group for payment of its expenses in connection with pursuing
an offer to buy the Company. The Investment Committee decided to agree to cover
the Dealer Management Group's expenses up to $100,000 incurred to prepare,
document and finance its acquisition proposal, including, without limitation,
preparation of a definitive merger agreement. The Investment Committee directed
Mr. Mehlfeldt and PaineWebber to request the Dealer Management Group to prepare
a form of definitive merger agreement to determine if acceptable terms could be
arranged. The Company did not agree to a period of exclusivity pending receipt
of a satisfactory form of merger agreement.
On December 6, 1994, two class-action lawsuits were filed in Nevada by
shareholders of the Company seeking to enjoin a transaction with the Dealer
Management Group, enjoin implementation of the Shareholders Rights Plan, and
various other forms of relief. The two cases, which were consolidated, were
dismissed by the plaintiffs without prejudice on March 31, 1995.
During November and December 1994, the Company forwarded to the financial
advisor for AKH certain requested information in connection with AKH's due
diligence investigation, and representatives of AKH spent one day at the
Company's headquarters conducting due diligence investigations. A due diligence
meeting between the Company and representatives of AKH was scheduled for
December 12 to 14, 1994, but was canceled by AKH through its financial advisor.
On December 7, 1994, Mr. Mehlfeldt and representatives of PaineWebber met
with Messrs. Adams and Cloward, representing Senior Management, Wesley E.
Stephenson and William H. Spencer, representing the Dealers, and a
representative of KPMG to discuss the terms of the Dealer Management Group's
letter of intent to purchase the Company. Senior Management was authorized to
contact the Company's lenders to discuss the proposal.
On December 8, 1994, the Investment Committee met with representatives of
PaineWebber and Holme Roberts. The Investment Committee decided to request that
AKH and the Dealer Management Group evidence their continuing interest in
acquiring the Company, by reaffirming their proposed prices, providing
information as to their respective financing contingencies, and setting forth
their due diligence requirements and a timetable for closing, by 12:00 Noon on
Friday, December 16, 1994, at which time the Investment Committee would review
the respective requests for a period of exclusive negotiations. The Investment
Committee also agreed to reimburse the Dealer Management Group for up to an
aggregate of $175,000 of reasonable expenses, provided that the Dealer
Management Group agreed to withdraw a request to adjust the proposed purchase
price by an amount equal to the transaction fee due PaineWebber and that it
proceed immediately to prepare and submit a definitive merger agreement.
During the next few days representatives of the Investment Committee
discussed the terms of their offer with representatives of the Dealer Management
Group. They also attempted to reach AKH through its financial advisor to
discuss its offer.
On December 13, 1994, the Company and the Dealer Management Group signed a
letter agreement pursuant to which the Company agreed to reimburse the Dealer
Management Group for up to $100,000 of costs incurred prior to December 8, 1994,
in connection with its acquisition proposal and agreed to reimburse up to
$75,000 of additional costs for a period beginning December 8, 1994, and ending
on the earlier of execution of a definitive merger agreement, termination of the
acquisition proposal, or December 31, 1994. On December 14, 1994, the Dealer
Management Group sent a draft merger agreement to the Company.
Thereafter, Mr. Mehlfeldt and representatives of PaineWebber and Holme
Roberts discussed with Gibson, Dunn & Crutcher and KPMG the form of merger
agreement and the terms of a proposed exclusivity agreement and agreement to
reimburse certain expenses of the Dealer Management Group. The Company also
received a letter from AKH to the effect that it would not proceed with its
proposal until the Dealer Management Group proposal was no longer being
considered.
The Investment Committee met on December 16, 1994, with Mr. Pavia and
representatives of PaineWebber and Holme Roberts. They were advised by Mr.
Pavia that AKH had advised him that AKH had elected not to pursue a transaction
with the Company because of the difficulty in competing with Company franchised
dealers whose goodwill they would need if they were to acquire the Company, as
well as its inability to conduct due diligence in a timely manner. The
Investment Committee discussed the AKH response and discussed AKH's due
diligence efforts with PaineWebber and members of the Investment Committee who
had been dealing with AKH. The Investment Committee determined that there was
not a serious interest on the part of AKH to continue to pursue its offer.
The Investment Committee also reviewed with PaineWebber the status of
discussions with other prospective purchasers and determined that there did not
appear to be active interest in acquiring the Company on the part of any
prospective purchaser except the Dealer Management Group. The Investment
Committee then authorized Mr. Siipola and Mr. Mehlfeldt to negotiate with the
Dealer Management Group with respect to an exclusive negotiation period until
January 20, 1995, and to pay 80% of costs and expenses of the Dealer Management
Group, except in cases where the transaction was terminated for reasons other
than the group's unilateral decision not to proceed. Messrs. Mehlfeldt and
Siipola and representatives of Holme Roberts and Gibson, Dunn & Crutcher
negotiated the terms of an exclusivity agreement and modified arrangement
regarding reimbursement of expenses during the ensuing week.
On December 22, 1994, the Company signed a letter agreement with the Dealer
Management Group pursuant to which the Company agreed that it would not solicit
or initiate, or, subject to the fiduciary duties of its Board of Directors,
participate in discussions with, any person concerning the acquisition of the
Company. The period of exclusivity would terminate upon the later of execution
of a definitive merger agreement, termination of negotiations and January 20,
1995.
The December 22, 1994 letter amended the December 13, 1994 letter with
respect to expenses and provided that the Company could terminate the
arrangement upon 24-hours notice with respect to expenses not yet incurred. The
Dealer Management Group agreed that if it did not consummate the proposed merger
for any reason other than because (i) financing was unavailable, or (ii) the
Investment Committee failed to recommend or withdraw the recommendation of the
consummation of the transaction because of another transaction under certain
circumstances, the Dealer Management Group would reimburse the Company for 20%
of the expenses incurred. The Company also agreed to indemnify and hold
harmless the Dealer Management Group for all costs and expenses arising out of
claims relating to the proposed transaction.
Thereafter, discussions occurred between Messrs. Siipola and Mehlfeldt on
behalf of the Investment Committee and Messrs. Cloward and Adams on behalf of
Senior Management and with Messrs. Stephenson, Spencer and Richard Miller on
behalf of the Dealers with respect to terms of the definitive merger agreement.
These discussions primarily related to topping fees, reimbursement of expenses
and contingencies to the Dealer Management Group's obligations. Other
discussions about the merger agreement were conducted by the respective parties
through Gibson, Dunn & Crutcher and Holme Roberts.
On January 19, 1995, Messrs. Spencer, Siipola and Mehlfeldt met with
representatives of KPMG, Gibson, Dunn & Crutcher, Holme Roberts and PaineWebber
to discuss the status of the negotiations. KPMG described the status of the
group's efforts to obtain an equity participant from various tire manufacturers
and the status of other negotiations with respect to financings. The
representatives of the Company inquired as to progress in forming various
entities to be owned by the Dealer Management Group and were advised that
definitive agreements among the members of the Dealer Management Group had not
been completed.
On January 20, 1995, the Investment Committee met with Mr. Pavia and
representatives of PaineWebber and Holme Roberts to review a draft merger
agreement. Mr. Cloward and representatives of KPMG and Gibson, Dunn & Crutcher
also met with the Investment Committee during a portion of the meeting to advise
that certain negotiations with respect to equity participations in their group
were continuing and that open issues remained between Senior Management and the
Dealer Management Group with respect to their relative participation in the
purchasing entity. The Investment Committee resolved to recommend to the Board
that the form of merger agreement be signed.
Subsequently, on January 20, 1995, Messrs. Cloward, Adams and Spencer and
representatives of Gibson, Dunn & Crutcher met with Messrs. Mehlfeldt, Siipola
and representatives of Holme Roberts and PaineWebber. The Dealer Management
Group advised the Investment Committee that in view of the unresolved issues
among them and the inability to obtain the necessary elements of financing, the
Dealer Management Group was not prepared to sign a merger agreement. They
requested an extension under the December 22, 1994 letter agreement until
February 8, 1995, to sign the merger agreement, which the Company approved. At
the close of business on January 20, 1995, Messrs. Cloward and Adams advised
Holme Roberts that they had received a negative response to the proposed price
of $18.50 per share from one of the possible equity participants with the Dealer
Management Group and advised that the group would not hold the Company to the
extension until February 8, 1995. Following discussions between Mr. Cloward and
Mr. Siipola as to the status of negotiations, the Company reaffirmed its belief
that the transaction should be financeable and determined to honor the extension
agreement while the Dealer Management Group continued to seek financing.
The Investment Committee met with Mr. Pavia and representatives of
PaineWebber and Holme Roberts on February 8, 1995. It reviewed three letters
dated February 7, 1995. The first letter was from the Dealer Management Group
which advised that the group had elected not to continue negotiations at that
time in light of the difficulties it had experienced in obtaining the elements
of its financing necessary to consummate the acquisition and the resulting
inability of the Dealer Management Group to reach agreement on certain issues
relating to the acquisition.
The second letter was from the Dealers and advised that the Dealers
intended to form an association to be known as "Big O Tire Dealers of America"
which was to be organized to deal cooperatively with respect to matters concern-
ing Big O franchisees. The letter contained a copy of a Dealer's "Declaration
of Interdependence" which set forth a four-part purpose of the association,
including the protection and advancement of Dealers' common interests in
preserving the continuity of operations as they currently existed, including
distribution systems, product supply, and operational philosophy at the retail
level.
The third letter also dated February 7, 1995, from Messrs. Cloward and
Adams, requested a period of exclusivity for negotiating a transaction on behalf
of Senior Management and others who might provide financing. Representatives of
Senior Management informed the Company that they continued to be interested in
completing a purchase of the Company on mutually acceptable terms. The
Investment Committee did not grant the period of exclusivity requested. The
Investment Committee began to discuss a restructuring plan for the Company
presented in very general terms by Messrs. Siipola and Mehlfeldt. On February
8, 1995, the Company publicly announced that the Dealer Management Group had
elected not to pursue the proposed transaction due to the inability to secure
financing.
On February 9, 1995, Mr. Cloward requested that the Company continue to pay
certain expenses of Senior Management in pursuing a possible acquisition. The
Investment Committee declined the request.
From February 11, 1995, to February 15, 1995, the Company's franchised
dealers met for their annual convention in Las Vegas. Numerous informal
conversations and meetings occurred among members of the Dealers, Senior
Management and members of the Investment Committee, some of which concerned in
general terms whether a transaction might be possible.
At a Board meeting on February 15, 1995, the Board approved a revised
management structure. The objective of the revised management structure was to
allow Mr. Cloward time to continue working on a transaction to acquire the
Company and to enable Messrs. Siipola and Mehlfeldt to manage the Company while
exploring alternatives to enhance the value of the Company should a transaction
with the Dealers and Senior Management not occur. Mr. Siipola remained as
Chairman and Mr. Mehlfeldt was elected Vice Chairman of the Company. Messrs.
Siipola and Mehlfeldt were retained to work for the Company substantially full
time pursuant to salary and incentive arrangements. Mr. Cloward would continue
as President of the Company. Messrs. Siipola, Mehlfeldt and Cloward became
members of the Office of the Chief Executive. Because of the complexity of
organizing the Dealer Management Group proposals, the Board advised Mr. Cloward
that it would have no objection if he continued to devote substantially all of
his business time to an attempt to organize a group of Dealers and Senior
Management to acquire the Company.
On February 7, 1995, Big O Tire Dealers of America ("BOTDA"), a California
nonprofit mutual benefit corporation was incorporated. Thereafter, BOTDA took
an active role in representing the Dealers' interests as a part of the Dealer
Management Group. At a Board meeting on February 15, 1995, the Board considered
adding a representative of the Dealers to the Board.
At a Board meeting held on February 24, 1995, the Board approved amendments
to the Company's Bylaws so as to accommodate the concept of a three-person Chief
Executive Office and to also recognize the new office of Vice Chairman of the
Board.
Discussions continued periodically during February and March, 1995 with the
Dealer Management Group and various members of the Investment Committee. These
discussions related primarily to whether the Dealers and Senior Management would
make another offer to purchase the Company and, if so, at what price such offer
might be made.
The Dealer Management Group's Second Offer. On April 6, 1995, the Company
received a proposal from the Dealer Management Group to acquire the Company for
a cash price of $16 per share and on substantially the same other terms as the
December proposal, including contingencies of signing a definitive merger
agreement, obtaining financing to complete the purchase, participation in the
acquisition by holders of at least 80% of the shares held by the Company's ESOP,
and participation in the purchasing group by franchise dealers having at least
85% of the Retail Stores. On April 12, 1995, the Investment Committee met with
PaineWebber and Holme Roberts. The Investment Committee authorized
reimbursement of expenses by the Dealer Management Group through February 8,
1995. The Investment Committee considered a request for certain reimbursement
of expenses by Senior Management subsequent to February 8, 1995, and determined
not to provide any additional reimbursements. The Investment Committee reviewed
the details of the debt and equity financing that the Dealer Management Group
had provided to the Company in connection with the offer to assess the
likelihood that financing to complete the purchase would be available. The
Investment Committee determined not to accept the $16 per share offer, decided
not to reimburse additional expenses of the group in pursuing the proposal, and
expressed the Investment Committee's concern about the contingency concerning
the ESOP's participation in the transaction. The Investment Committee advised
the Dealer Management Group of its determination, and also that the Investment
Committee would be open to further negotiations at a more favorable price. The
Investment Committee's response was announced publicly.
On April 24, 1995, the Investment Committee met with representatives of the
Dealers and Senior Management including Messrs. Stephenson and Spencer and
others on behalf of the Dealers and Messrs. Cloward and Adams, and represen-
tatives of KPMG, PaineWebber, Holme Roberts and Wendel Rosen Black & Dean
("Wendel Rosen"), which was now counsel for the Dealers. The Dealer Management
Group discussed why they believed the $16 offer was adequate. After the meeting
adjourned, various members of the Investment Committee met with representatives
of the Dealers. In the ensuing days, members of the Investment Committee had
conversations with members of the Dealer Management Group with respect to
various matters relating to Company management as well as the status of the
Dealer Management Group's offer.
By notice dated May 5, 1995, the Dealer Management Group advised the
Company of its desire to have two proposals brought before the Company's Annual
Meeting of Stockholders scheduled for June 7, 1995. The first proposal was to
recommend that the Company's Board of Directors take all actions necessary to
eliminate the Stockholder Rights Plan. The second proposal was to recommend
that the Company's Board of Directors begin the good faith reconsideration of,
and, if appropriate, negotiation of, the previously rejected cash offer of $16
per share made on April 6, 1995, through a committee comprised exclusively of
non-employee directors. Because the Dealers and Senior Management believed that
adequate progress was being made in negotiations with the Investment Committee
prior to the Annual Meeting of Stockholders, no attempt was made to solicit
votes for the proposals and they were not presented at the Annual Meeting of
Stockholders.
Due to the fact that they had become employees of the Company, on May 10,
1995, Messrs. Siipola and Mehlfeldt resigned from the Investment Committee and
thereafter did not participate in the Investment Committee's deliberations. Mr.
Carney was elected Chair of the Investment Committee.
On May 22, 1995, representatives of the Dealer Management Group and their
advisors met with the Investment Committee, PaineWebber and Holme Roberts to
discuss the price at which the Dealer Management Group believed a transaction
could be accomplished. Although the Dealer Management Group did not raise its
offer above $16.00, it explored with the Investment Committee, the Investment
Committee's advisors and the advisors to the Dealer Management Group, the
possibility of reducing certain costs associated with the transaction so that
the offer price could be increased. The meeting ended with the Investment
Committee indicating that although the Dealer Management Group would have to
negotiate any such cost savings on its own, the Investment Committee would be
receptive to an acquisition offer for the Company at a price of $16.50 per
share.
On June 5, 1995, the Company announced that it had received a letter from
the Dealer Management Group proposing to acquire the Company at a price of
$16.50 per share, subject to a number of conditions. In conjunction with the
Company's Annual Meeting of Shareholders, the Investment Committee met on June
6, 1995, with PaineWebber and Holme Roberts to discuss the status of
negotiations with the Dealer Management Group, including timing of a transaction
and the terms of reimbursement of their expenses. The Investment Committee met
the following morning with Holme Roberts and representatives from Senior
Management, and the Dealers including Messrs. Cloward, Adams, Stephenson,
Spencer, a representative of Wendel Rosen and other members of the Dealer
Management Group to discuss terms of a definitive agreement. On June 7, 1995,
the Investment Committee met with Holme Roberts and decided to recommend that
the Company enter into a letter agreement with the Dealer Management Group with
respect to an offer at $16.50 per share subject to obtaining financing,
participation in the Purchaser of at least 80% of the shares held by the
Company's ESOP, participation in the Purchaser of not less than 85% of the
franchised Big O Dealers, and negotiation of a definitive merger agreement. The
Company agreed to pay up to $750,000 of the Purchaser's expenses (including
those previously reimbursed in connection with the December 1994 proposal), if
85% of the franchised stores owned by Dealers participating in the Dealer Group
with franchises expiring before July 1, 1999, extended their franchise
agreements at least through the earlier of (a) July 1, 2002, or (b) the date
three years after such franchise agreements would expire. If they did not do
so, the reimbursement would not exceed $500,000. The Investment Committee also
agreed to reimburse up to $217,000 of financing fees and commitments. The Board
met following that meeting and approved the letter agreement. The letter
agreement was signed on June 7, 1995, by the Company and the Dealer Management
Group, a press release announcing the signing of the letter agreement was
released on June 7, 1995, and the signing of the letter agreement was announced
at the Annual Meeting of Shareholders held on the evening of June 7, 1995.
During the ensuing month the parties negotiated a definitive merger
agreement. The Investment Committee met on July 18, 1995, with Holme Roberts to
review the Merger Agreement and provided final, technical comments.
On July 21, 1995, the Investment Committee met with PaineWebber and Holme
Roberts and approved signing the Merger Agreement. Representatives of
PaineWebber reviewed the terms of the transaction, including its work with the
Company over the past year. The Investment Committee then reviewed language of
the draft Merger Agreement and its representations concerning the Investment
Committee's determination with respect to the fairness of the transaction and
the likelihood of receiving a fairness opinion. The Investment Committee
determined to recommend the Merger to the Board as being in the best interest of
the Company and its shareholders for the reasons set forth below in
"Recommendation of the Board; the Company's Purpose and Reasons for and Belief
as to the Fairness of the Merger." The Investment Committee also determined,
based upon its own analysis of the Merger Consideration and taking into
consideration the presentation of PaineWebber at the meeting, that the
transactions contemplated by the Merger Agreement, based on information
presently known, are in the best interest of and, subject to the receipt of the
fairness opinions as described in the Merger Agreement, fair to the
disinterested shareholders of the Company. The Investment Committee also
determined that it was unaware of any reason why the Company would not receive a
fairness opinion as provided in the Merger Agreement.
Thereafter, on July 21, 1995, the Board met with Hopper and Kanouff, Holme
Roberts and PaineWebber and again approved signing the Merger Agreement and
certain amendments to the Shareholder Rights Plan necessary to permit the
signing of the Merger Agreement and the consummation of the Merger. Members of
the Board who were participating in the transaction as Senior Management or
Dealers abstained from voting because of such participation. All other
directors voted to approve the Merger Agreement. The Merger Agreement was
signed on July 24, 1995.
On July 24, 1995, prior to executing the Merger Agreement, the Company
changed the Shareholder Rights Plan by amending the Rights Agreement between the
Company and Interwest Transfer Co., Inc., to specifically exclude from the
definition of an "Acquiring Person," the following: (i) BOTI Holdings, Inc.;
(ii) BOTI Acquisition Corp.; (iii) an entity to be formed directly or indirectly
by persons who are currently franchisees of the Company; (iv) any other person
who may be deemed to be the beneficial owner of the Common Stock because of the
execution and delivery of the Merger Agreement; and (v) any group consisting of
two or more of the foregoing, so long as such persons are not the beneficial
owners of any capital stock of the Company other than (a) Common Stock acquired
pursuant to the Merger Agreement; (b) Common Stock owned or subject to stock
options held by such persons prior to the date of the Merger Agreement; (c)
Common Stock acquired by any of such persons from any other of such persons; (d)
Common Stock or other securities acquired by such persons in transactions or
types of transactions that are approved in advance by the Investment Committee;
and (e) any other person that beneficially owned Common Stock as of July 24,
1995, but does not thereafter become the beneficial owner of any additional
Common Stock not exceeding 1% of the share of Common Stock then outstanding.
On August 16, 1995, the Dealer Management Group presented to the Investment
Committee evidence of financing commitments subject to various contingencies,
the fulfillment of which would occur in the future. The Investment Committee
reviewed and determined that the Dealer Management Group's financing
commitments, in the aggregate, were for amounts sufficient to provide funds to
pay the Merger Consideration.
On August 31, 1995, the Company agreed to a request made by the Dealer
Management Group to extend until October 2, 1995, the date on which the Company
or the Dealer Management Group could terminate the Merger Agreement, if prior to
October 2, 1995, the Dealer Management Group had not satisfied or waived the
contingency in the Merger Agreement that required participation in the Dealer
Management Group by the Company's dealers owning not less than 85% of the
franchised Big O Retail Stores ("Dealer Participation Contingency"). As a part
of the agreement, the Dealer Management Group agreed that the Company could
delay incurring additional expenditures with respect to its proxy statement
until the Company had been advised that the Dealer Participation Contingency had
been satisfied or waived, and the Company was satisfied that a fairness opinion
would be received by the participants in the Company ESOP in connection with the
proposed Merger. See the Merger Agreement, as amended, attached to this Proxy
Statement as APPENDIX A.
On October 2, 1995, the Company agreed to a request made by the Dealer
Management Group to extend until October 16, 1995, the date on which the Company
or the Dealer Management Group could terminate the Merger Agreement, if prior to
October 16, 1995, the Dealer Management Group had not satisfied or waived the
Dealer Participation Contingency. As part of the agreement, the Dealer
Management Group agreed that the Company would not further extend such deadline
and that the Company could delay incurring additional expenditures with respect
to its proxy statement until the Company had been advised that the Dealer
Participation Contingency had been satisfied or waived. See the Merger
Agreement, as amended, attached to this Proxy Statement as APPENDIX A.
On October 15, 1995, the Company received notice from the Parent and the
Purchaser that the Parent and the Purchaser elected to waive the Dealer
Participation Contingency. The Parent and the Purchaser advised the Company
that dealers owning 82% of the Company's franchised Retail Stores, as of the
date of the Merger Agreement, had elected to participate indirectly in the
acquisition of the Company.
On November 14, 1995, the Board met with Hopper and Kanouff, Holme Roberts,
PaineWebber and Lentz Evans and King, P.C., legal counsel to the ESOP. At the
meeting, PaineWebber rendered its opinion to the effect that, as of such date,
the Merger Consideration was fair, from a financial point of view, to the
holders of Common Stock (other than holders of Excluded Shares). See "Special
Factors -- Opinion of Financial Advisor." The analysis of PaineWebber delivered
at the November 14, 1995, Board meeting has been filed as an exhibit to the
Schedule 13E-3.
At the meeting held on November 14, 1995, the Board approved various
amendments to the ESOP most of which will only take effect after the
consummation of the Merger. Included in such amendments is an amendment that
sets forth the procedures as to how the Common Stock held by the ESOP is to be
voted on the Merger. See "Principal Stockholders of the Company -- Note 1."
Also, on November 14, 1995, the Board, upon the unanimous recommendation of the
Investment Committee, approved amendments to the Merger Agreement to clarify the
mechanics of how the conversion of the Common Stock held by the ESOP which is to
be converted into shares of the Parent is to be accomplished.
At the meeting held on November 14, 1995, the Board (other than those
directors who are participating in the acquisition as members of Senior
Management or the Dealers who abstained) voted to recommend that the
stockholders vote for the Merger.
RECOMMENDATION OF THE BOARD OF DIRECTORS; THE COMPANY'S PURPOSE AND REASONS FOR
AND BELIEF AS TO THE FAIRNESS OF THE MERGER
RECOMMENDATION. The Investment Committee and the Board (excluding the
directors who will be stockholders of the Purchaser, all of whom abstained from
voting) of the Company have considered the terms and structure of the Merger,
have reviewed the financial and legal aspects of the Merger with financial and
legal advisors, have considered the financial and operational considerations
related to the Merger, believe that the Merger is fair to and in the best
interest of the Company's stockholders who are not affiliated with Senior
Management or the Dealers and recommend that stockholders vote for the proposal
to approve the Merger Agreement. Included in the directors who voted for the
recommendation were all of the directors who are not employees of the Company or
Dealers. Each member of the Board of Directors has advised the Company that he
intends to vote his shares in favor of the adoption of the Merger Agreement. On
the Record Date those directors (including members of Senior Management) and
members of their families owned an aggregate _______ outstanding shares
(approximately ____% of the outstanding shares of the Common Stock).
PURPOSE AND REASONS FOR THE MERGER AND FOR THE TIMING OF THE MERGER. The
Company's purpose and reason for the Merger are to allow all stockholders of the
Company to sell their shares in the Company at a price that the Investment
Committee and Board believe is fair to and in the best interests of the
stockholders. After the Stockholder Proposal was approved in June 1994 the
Company began immediately considering various alternatives to fulfill the
mandate to take action directed toward enhancing stockholder value. The timing
of the Merger has been determined by the time required to review various
alternatives to enhance stockholder value for the Company, to solicit
indications from persons who might be interested in acquiring the Company, to
negotiate the terms of the Merger Agreement, for the Dealer Management Group to
obtain financing, and to obtain the requisite stockholder and other approvals.
FAIRNESS. The Board and the Investment Committee began considering various
alternatives in response to the Stockholder Proposal and after considering all
of the factors described below, determined that the Merger was fair to and in
the best interest of the Company's stockholders who would receive the Merger
Consideration.
MERGER PRICE. The Merger Consideration constitutes a 14.8% premium over
the $14.375 last reported sale price of the Common Stock on July 20, 1995.
MARKET TEST. After extensive testing of the market to determine whether
there were buyers for the Company, the Board and the Investment Committee
determined that the Merger Consideration represents the best transaction that
would be available for the Company in the foreseeable future. The Board and
Investment Committee believe the market test was conducted fairly and
thoroughly. The marketplace was aware that the Company would be receptive to
offers for more than 10 months prior to the execution of the Merger Agreement
and the Company through PaineWebber contacted approximately 17 prospective
purchasers of the Company.
OTHER TRANSACTIONS. The Investment Committee and the Board did not
believe, based upon the analysis of PaineWebber and its own determination of
acceptable debt levels for the Company, that extraordinary dividends or share
repurchases would enhance stockholder value.
LIQUIDATION VALUE. The Board did not believe that the Company's
stockholders would receive an amount per share exceeding the Merger
Consideration if the Company were liquidated. The Board determined that
liquidation would be less favorable to the Company's stockholders than the
Merger Consideration because of taxes that would be payable at the Company level
before distributions to stockholders could be paid and the fact that the
Company's assets were not separately as valuable as the Company as a going
concern.
STATUS QUO. The Investment Committee considered continuing to operate the
Company without any specific transaction and determined that a transaction for
the Merger Consideration was advisable. The retail tire business is extremely
competitive with relatively low margins. In addition, the Company depends upon
continued strong purchases from Retail Stores that are free to buy their retail
inventory elsewhere. The uncertainty of future successful performance by the
Company was considered to be outweighed by the assurance of $16.50 per share.
FAIRNESS OPINION. The Board considered the advice of PaineWebber with
respect to various alternatives to enhance shareholder value, PaineWebber's
presentation on July 21, 1995, and the opinion of PaineWebber delivered on
November 14, 1995, to the effect that, as of the date of such opinion, the
Merger Consideration is fair, from a financial point of view, to the holders of
Common Stock (other than holders of Excluded Shares).
CONTINUING RELATIONSHIP WITH DEALERS. The Company's primary customers are
the Retail Stores. It became apparent during the course of reviewing
alternatives for the Company that a sale of the Company or other action that the
Dealers did not support could adversely affect the value of the Company and
could seriously affect the price obtainable for the Company's shares in an
alternative transaction. The most significant assets of the Company are its
franchises and relationships with its group of franchised dealers and any
proposed sale of the Company or other action that diminishes the value of those
assets could seriously affect the value of the Company.
The Investment Committee and the Board of Directors have not assigned
relative weights to the factors described above.
THE PARENT'S PURPOSES AND REASONS FOR THE MERGER
The Parent is engaging in the Merger in order to concentrate the ownership
of the Company in those parties who will be actively engaged in its operation,
will have a long-term perspective and will be highly motivated toward the
building of a successful operation. The Parent's desire to effect the Merger is
based upon the expected realization of the Merger benefits described in the
following paragraph. Having identified those expected benefits of the Merger,
the Parent believes that the achievement of those benefits should be pursued at
the present time because the Company's Investment Committee has for
approximately 18 months been exploring strategic alternatives which, if
accomplished, would either make the acquisition of the Company by the Parent
impossible or unattractive.
The Parent believes that the Company, which will be a wholly-owned
subsidiary of the Parent after the Merger, will benefit from the Merger because
(i) the Company's management will be free to devote itself to building long-term
values for the Company without concern that such efforts may adversely affect
short-term results and the market price for the Common Stock; (ii) the Merger
will eliminate the need for the Company to comply with the reporting
requirements of the Exchange Act, to maintain its current listing on the NASDAQ
National Market System, and to continue an investor relations program, the
aggregate cost of which the Company estimates amounts to approximately $190,000
annually (primarily consisting of the preparation of the annual report to
stockholders, accounting and legal fees and investor program costs); (iii) the
Company will be able to pursue the common goals of the Dealers and the Company's
employees; and (iv) the ownership of the Company will be concentrated in the
hands of those parties who will be actively engaged in its operation, will have
a long-term perspective and will be highly motivated toward the building of a
successful operation.
The form of the Merger was selected by the Parent to accomplish in a single
step its acquisition of the outstanding shares of Common Stock of the Company
not already owned by the Parent's stockholders. That structure was deemed
preferable to a tender offer, which probably would have resulted in less than
100% ownership by the Parent unless followed by a subsequent merger. The Parent
offered cash consideration in the Merger because this was the only method which
would accomplish the goal of eliminating public ownership and establishing the
desired unification of the owners, substantial suppliers and employees of the
Company.
OPINION OF FINANCIAL ADVISOR
The full text of the opinion of PaineWebber dated November 14, 1995, which
sets forth the assumptions made, procedures followed, matters considered and
limitations on the review undertaken, is attached as APPENDIX B to this Proxy
Statement. Stockholders of the Company are urged to read such opinion carefully
in its entirety. The summary of the PaineWebber opinion set forth in this Proxy
Statement is qualified in its entirety by reference to the full text of such
opinion.
The Company retained PaineWebber as financial advisor to the Investment
Committee with respect to the Merger and to render an opinion as to whether or
not the Merger Consideration is fair, from a financial point of view, to the
holders of Common Stock (other than holders of Excluded Shares).
PaineWebber has delivered to the Board its written opinion to the effect
that, as of November 14, 1995, and based on its review and assumptions and
subject to the limitations summarized below, the Merger Consideration is fair,
from a financial point of view, to the holders of Common Stock (other than
holders of Excluded Shares). PaineWebber's opinion does not constitute a
recommendation to any stockholder of the Company as to how such stockholder
should vote with respect to the Merger.
In rendering its opinion, PaineWebber, among other things: (i) reviewed,
among other public information, the Company's Annual Reports, Forms 10-K and
related financial information for the five fiscal years ended December 31, 1994,
and a draft of the Company's Form 10-Q and the related unaudited financial
information for the nine months ended September 30, 1995; (ii) reviewed certain
information, including financial forecasts, relating to the business, earnings,
cash flow, assets and prospects of the Company, furnished to PaineWebber by the
Company; (iii) conducted discussions with members of senior management of the
Company concerning the Company's businesses and prospects; (iv) reviewed the
historical market prices and trading activity for the Common Stock and compared
such price and trading history with that of certain other publicly traded
companies which PaineWebber deemed relevant; (v) compared the financial position
and operating results of the Company with those of certain other publicly traded
companies which PaineWebber deemed relevant; (vi) reviewed the proposed
financial terms of the Merger and compared such terms with the financial terms
of certain other mergers and acquisitions which PaineWebber deemed relevant;
(vii) reviewed the Merger Agreement and a draft of this Proxy Statement as
proposed to be filed with the Securities and Exchange Commission; and (viii)
reviewed such other financial studies and analyses and performed such other
investigations and took into account such other matters as PaineWebber deemed
appropriate, including its assessment of general economic, market and monetary
conditions.
In preparing its opinion, PaineWebber relied on the accuracy and
completeness of all information that was publicly available or supplied or
otherwise communicated to it by or on behalf of the Company, and it has not
independently verified such information. PaineWebber assumed that the financial
forecasts examined by it were reasonably prepared on bases reflecting the best
currently available estimates and good faith judgments of the management of the
Company as to the future performance or the Company. PaineWebber did not
undertake, and was not provided with, an independent evaluation or appraisal of
the assets or liabilities (contingent or otherwise) of the Company and assumed
that all material liabilities (contingent or otherwise, known or unknown) of the
Company are as set forth in the Company's consolidated financial statements.
PaineWebber, at the request of the Company, solicited third party indications of
interest with respect to the acquisition of the Company. PaineWebber's opinion
is based on the regulatory, economic, monetary and market conditions existing on
the date thereof.
PaineWebber's opinion is directed to the Board of Directors of the Company
and does not constitute a recommendation to any stockholder of the Company as to
how any such stockholder should vote with respect to the Merger. PaineWebber's
opinion does not address the relative merits of the Merger and any other
potential transactions or business strategies discussed by the Board of
Directors of the Company or the Investment Committee as alternatives to the
Merger or the decision of the Board of Directors of the Company to proceed with
the Merger.
PaineWebber assumed that there had been no material changes in the
Company's assets, financial condition, results of operations, business or
prospects since the date of the last financial statements made available to
PaineWebber. PaineWebber assumed no responsibility to revise or update its
opinion if there is a change in the financial condition or prospects of the
Company from that disclosed or projected in the information PaineWebber reviewed
as set forth above or in general economic or market conditions. In rendering
its opinion, PaineWebber was not engaged to act as an agent or fiduciary of, and
the Company has expressly waived any duties or liabilities PaineWebber may
otherwise be deemed to have had to, the Company's stockholders or any other
third party.
The preparation of a fairness opinion involves various determinations as to
the most appropriate and relevant quantitative methods of financial analyses and
application of those methods to the particular circumstances and, therefore,
such an opinion is not readily susceptible to partial analysis or summary
description. Furthermore, in arriving at its fairness opinion, PaineWebber did
to attribute any particular weight to any analysis or factor considered by it.
Accordingly, PaineWebber believes that its analysis must be considered as a
whole and that considering any portion of such analysis and of the factors
considered, without considering all analyses and factors, could create a
misleading or incomplete view of the process underlying its opinion. In its
analyses, PaineWebber made numerous assumptions with respect to industry
performance, general business and economic conditions and other matters, many of
which are beyond the control of the Company. Any estimates contained in these
analyses are not necessarily indicative of actual values or predictive of future
results or values, which may be significantly more or less favorable than as set
forth therein, and neither the Company nor PaineWebber assumes any
responsibility for their accuracy. In addition, analyses relating to the value
of businesses do not purport to be appraisals or to reflect the price at which
businesses may actually be sold.
The following paragraphs summarize the significant analyses performed by
PaineWebber in arriving at the opinion of PaineWebber, dated November 14, 1995,
presented to the Board of Directors of the Company.
STOCK TRADING HISTORY. PaineWebber reviewed the history of the trading
prices and volume for the Common Stock, both separate and in relation to market
indices and the comparative company index. The comparative company index
comprised four companies which PaineWebber deemed relevant including Bandag
Incorporated, Brad Ragan, Inc., Republic Automotive Parts, Inc. and TBC
Corporation (the "Comparative Companies").
SELECTED COMPARATIVE PUBLIC COMPANY ANALYSIS. Using publicly available
information, PaineWebber compared selected historical and projected financial,
operating and stock market performance data of the Company to the corresponding
data of the Comparative Companies.
With respect to the Company and the Comparative Companies, PaineWebber
compared multiples of latest 12 months revenues, EBITDA, EBIT, net income, book
value, estimated (by International Brokers Estimate System or "IBES") 1995
earnings per share ("EPS") and estimated (by IBES) 1996 EPS. PaineWebber noted
that, based on closing stock prices as of November 9, 1994, the Company's
revenue multiple was 0.45x versus a median revenue multiple of 0.46x for the
Comparative Companies; the Company's EBITDA multiple was 6.4x versus a median
EBITDA multiple of 6.5x of the Comparative Companies; the Company's EBIT
multiple was 7.7x versus a median EBIT multiple of 8.0x for the Comparative
Companies; the Company's net income multiple was 12.5x versus a median net
income multiple of 11.5x for the Comparative Companies; the Company's book value
multiple was 1.32x versus a median book value multiple of 1.51x for the
Comparative Companies; the Company's 1995 EPS multiple was 11.9x versus a median
1995 EPS multiple of 10.2x for the Comparative Companies; and the Company's 1996
EPS multiple was 10.5x versus a median 1996 EPSA multiple of 7.6x for the
Comparative Companies.
PaineWebber applied the multiples of revenues, EBITDA, EBIT, net income,
book value, estimated 1995 EPS and estimated 1996 EPS calculated above to the
respective results of the Company which resulted in a range of possible equity
values for the Company based on the comparative company analysis of $11.87 to
$16.32 per fully diluted share of Common Stock. PaineWebber then applied a
control premium of 30%, based on the Retail Industry Transactions premium
described in "Special Factors -- Opinion of Financial Advisor --Premiums Paid
Analysis," to such valuation range to determine a range of possible equity
values assuming a control premium. Based on this analysis, PaineWebber derived
a range of possible equity values of $15.43 to $21.22 per fully diluted share of
Common Stock.
DISCOUNTED CASH FLOW ANALYSIS. A discounted cash flow analysis is a
traditional valuation methodology used to derive a valuation of a corporate
entity by capitalizing the estimated future earnings and calculating the
estimated future free cash flows of such corporate entity and discounting such
aggregated results back to the present. PaineWebber performed a discounted cash
flow analysis of the Company based on the fiscal 1995 to 2000 financial forecast
for the Company provided by the Company management (the "Financial Forecast").
Using the information set forth in the Financial Forecast, PaineWebber
calculated the estimated "free cash flow" based on projected unleveraged net
income adjusted for: (i) certain projected non-cash items (i.e., depreciation
and amortization); (ii) projected capital expenditures; and (iii) projected
non-cash working capital investment.
PaineWebber analyzed the Financial Forecast and discounted the stream of
free cash flows provided in such projections back to December 31, 1995 using
discount rates of 13.0% to 17.0%. To estimate the residual value of the Company
at the end of the Financial Forecast period, PaineWebber applied terminal
multiples of 6.0x to 7.0x to the projected fiscal 2000 EBITDA and discounted
such value estimates back to December 31, 1995, using discount rates of 13.0% to
17.0%. Based on this analysis, PaineWebber derived a range of possible equity
values of $14.95 to $20.32 per fully diluted share of Common Stock.
PREMIUMS PAID ANALYSIS. Using publicly available information, PaineWebber
calculated the premiums represented by the Merger Consideration based on the
Company's closing stock price one day, one week and four weeks prior to public
announcement of : (i) the $18.50 per share offer from the Parent on December 5,
1994 (the "$18.50 Management Offer"); (ii) the Balboa shareholder proposal on
December 31, 1993 (the "Balboa Shareholder Proposal"); and (iii) Balboa's
initial 13-D filed on February 17, 1993, in which Balboa stated that it had
discussions with management regarding methods of increasing sales, cash flow and
profitability, and that it intended to continue such discussions with the
intention of assisting the Company in enhancing shareholder value (the "Balboa
13-D Filing"). PaineWebber determined that: (i) the premiums of the Merger
Consideration over the closing stock price one day, one week and four weeks
prior to the $18.50 Management Offer (which was made after the October 1994 AKH
offer of $18 per share) were 3.1%, 3.9% and a negative 0.8%, respectively; (ii)
the premiums of the Merger Consideration over the closing stock price one day,
one week and four weeks prior to the Balboa Shareholder Proposal were 18.9%,
15.8% and 14.8%, respectively; and (iii) the premiums of the Merger
Consideration over the closing stock price one day, one week and four weeks
prior to the Balboa 13-D Filing were 22.2%, 26.9% and 22.2%, respectively.
PaineWebber noted that the premiums set forth in (i) above reflected the
announcement of the $18.00 per share AKH offer and the premiums set forth in
(ii) and (iii) above were based on stock prices that prevailed over 22 months
prior to the date of its opinion.
PaineWebber compared the premiums calculated above with the historical
median premium paid in retail industry (as defined by Securities Data
Corporation ("SDC")) transactions announced between January 1, 1990, and
November 3, 1995 (the "Retail Industry Transactions"). PaineWebber determined,
based on information obtained from SDC, that the median of the premium of
offered price to closing stock price for the Retail Industry Transactions one
day, one week and four weeks prior to announcement of such transactions was
25.7%, 28.7% and 33.7%, respectively.
Pursuant to an engagement letter between the Company and PaineWebber,
PaineWebber was paid a retainer fee of $50,000 at the commencement of its
engagement, a monthly retainer fee of $25,000 from August 31, 1994, and a fee of
$300,000 payable upon rendering its opinion on November 14, 1995, and will be
paid a fee of $600,000 upon the closing of the Merger against which the $300,000
fairness opinion fee and $250,000 of monthly retainer fees will be credited.
PaineWebber will also be reimbursed for its related expenses. The Company has
also agreed to indemnify PaineWebber, its affiliates and each of their
respective directors, officers, agents and employees, and each person, if any,
controlling PaineWebber or any of its affiliates, against certain liabilities,
including liabilities under federal securities laws.
PaineWebber has previously provided investment banking services to the
Company had may provide financial advisory or other investment banking services
to the Company in the future. In the normal course of its business, PaineWebber
may from time to time trade the debt or equity securities of the Company for its
own account and for the accounts of its customers and, accordingly, may at any
time hold a long or short position in such securities.
PaineWebber is a prominent investment banking and financial advisory firm
with experience in the valuation of businesses and their securities in
connection with mergers and acquisitions, negotiated underwritings, secondary
distributions of securities, private placements and valuations for corporate
purposes. The Company retained PaineWebber primarily because of the experience
of the PaineWebber personnel in evaluating businesses and seeking candidates to
acquire companies and because of the Investment Committee's perception of such
persons' overall understanding of the Shareholder Proposal.
A COPY OF THE PAINEWEBBER FAIRNESS OPINION IS INCLUDED HEREIN AS APPENDIX
B. STOCKHOLDERS ARE URGED TO READ CAREFULLY THE PAINEWEBBER FAIRNESS OPINION IN
ITS ENTIRETY.
PLANS FOR THE COMPANY AFTER THE MERGER
The Parent expects to continue the business and operations of the Company
substantially as they are currently being conducted by the Company and its
subsidiaries. The Dealer Management Group of the Company, however, will
continue to evaluate the business and operations of the Company and will make
such changes as are deemed appropriate.
The Parent is exploring ways to raise cash for working capital and other
general corporate purposes in addition to the financing sources discussed under
the heading "Financing of the Merger". Although no agreement or arrangement has
been entered into with respect to any transaction, the types of transactions
under consideration by the Parent include the sale of certain parcels of
undeveloped real property adjacent to certain of the Company's regional service
center locations and certain Retail Store sites. There can be no assurance that
an agreement with respect to any transaction will be reached or, if reached,
that any such transaction will be consummated. It is anticipated that the
Company will not pay any cash dividends on its securities after the Merger.
Except for the possible merger or liquidation of several subsidiaries of
the Company into the Company, the Parent does not have any present plans or
proposals which relate to or would result in an extraordinary corporate
transaction, such as a merger, reorganization, liquidation, relocation of any
operations of the Company or any changes in the Company's present
capitalization, corporate structure or business or, except as described above,
the sale or transfer of a material amount of assets involving the Company or any
of its subsidiaries or the composition of the Company's management. The Parent
will from time to time be reviewing additional information and reviewing
possible options with respect to the Company and may propose or develop
additional or new plans or proposals or may propose the acquisition or
disposition of assets or other changes in the Company's business, corporate
structure, capitalization, management or dividend policy.
It is also anticipated that the officers (other than Messrs. Siipola and
Mehlfeldt) and key employees of the Company will continue as employees of the
Company after the Merger. Those officers who are shareholders of the Parent
(other than solely as a result of their participation in the ESOP) will be
compensated at substantially the levels of compensation they received in 1995,
with the exception of Mr. Cloward, whose compensation will revert in 1996 to the
level he was receiving as of January 1, 1995, and with the exception of Ms.
O'Reilly, whose 1996 compensation will be based on her compensation level in
1995. It is expected that in most situations such persons will have
substantially equivalent positions with the Company. In connection with the
consummation of the Merger, Messrs. Siipola and Mehlfeldt will not continue as
employees, officers, nor directors of the Company. The Merger Agreement
provides that the board of directors of the Purchaser will become the board of
directors of the Company at the Effective Time.
Following the consummation of the Merger, the registration of the Common
Stock under the Exchange Act will be terminated.
FEDERAL INCOME TAX CONSEQUENCES
The discussion of federal tax consequences set forth below is directed
primarily toward individual taxpayers who are citizens or residents of the
United States. However, because of the complexities of federal, state and local
income tax laws it is recommended that the Company's stockholders consult their
own tax advisors concerning the federal, state and local tax consequences of the
Merger. Persons who are trusts, tax-exempt entities, corporations subject to
specialized income tax rules (for example, insurance companies) or non-United
States citizens or residents are particularly cautioned to consult their tax
advisors in considering the tax consequences of the Merger.
GENERAL. The following is a summary of the material federal income tax
consequences of the Merger to the Company and its stockholders. This summary is
based upon the Internal Revenue Code of 1986, as amended (the "Code"), the rules
and regulations promulgated thereunder, current administrative interpretations
and court decisions. No assurance can be given that future legislation,
regulations, administrative interpretations or court decisions will not
significantly change these authorities, possibly with A retroactive effect. No
rulings have been requested or received from the Internal Revenue Service (the
"IRS") as to the matters discussed herein and there is no intent to seek any
such ruling. Accordingly, no assurance can be given that the IRS will not
challenge the tax treatment of certain matters discussed in this summary or, if
it does challenge the tax treatment, that it will not be successful.
FEDERAL INCOME TAX CONSEQUENCES TO THE PARENT, THE PURCHASER AND THE
COMPANY. The merger of the Purchaser into the Company, with the Company
surviving and with the Company's stockholders receiving solely cash in the
transaction, constitutes a taxable reverse subsidiary merger which will be
treated for federal income tax purposes as a direct purchase by the Parent of
the Common Stock from the Company's stockholders in exchange for cash and as
such the transitory existence of the Purchaser as the wholly-owned subsidiary
will be disregarded for federal income tax purposes. Because the Company will
be treated as purchasing the Common Stock directly from the Company's
stockholders, unless a Code Section 338 election is made to treat the purchase
by the Parent of the Company's Common Stock as a purchase of the Company's
assets resulting in a stepped up basis in the Company's assets, no gain or loss
will be recognized by the Company as a result of the Merger. Further, no gain
or loss will be recognized by Parent upon the receipt of the shares of the
Company's Common Stock from the Company's stockholders in exchange for cash, or
in the case of the ESOP and certain other of the Company's stockholders, in
exchange for shares of the Parent's common stock. The payment by the Parent of
the Merger Consideration, which will be transferred by the Company to the
Company's stockholders upon surrender by them of their shares of Common Stock,
will be treated as a contribution by the Parent to the Company's capital and as
such the Parent's tax basis in the Common Stock will equal the amount of such
capital contribution.
FEDERAL INCOME TAX CONSEQUENCES TO THE COMPANY'S STOCKHOLDERS. Consistent
with the analysis described in the preceding paragraph, a stockholder of the
Company (other than a tax exempt trust or other tax exempt organization which
owns shares of the Company's Common Stock) will recognize gain or loss as a
result of the Merger, measured by the difference between such stockholder's
amount realized and its basis in the Common Stock.
To the extent that the ESOP receives shares of the Parent's common stock in
exchange for the shares of the Common Stock currently held by the ESOP, the
Company's management believes that the shares of the Parent's common stock
received and subsequently held by the ESOP should constitute a "qualifying
employer security" for federal income tax purposes which may be held by the
ESOP. Even though the exchange of the shares of the Common Stock held by the
ESOP for shares of the Parent may not constitute a tax free reorganization under
the Code if integrated with the purchase for cash by the Parent of the Common
Stock held by the Company's stockholders as contemplated under the Merger
Agreement, the Company's management believes that because the ESOP, which will
hold the shares of the Parent's common stock, is a qualified trust under Code
Section 401(a), which is a tax exempt organization under Code Section 501(a),
the ESOP will not be required under Code Section 512(b)(5) to recognize gain or
loss as a result of such exchange transaction which would otherwise be taxable
under the Code.
For noncorporate stockholders of the Company who hold Common Stock as a
capital asset, gain or loss recognized as a result of the Merger will be treated
as a capital gain or loss, provided that the Company is not treated for federal
income tax purposes as a "collapsible corporation." In the opinion of the
Company's management, the Company is not a collapsible corporation for federal
income tax purposes. Under the current provisions in effect as of the date
hereof, net capital gains (i.e., the excess of net long-term capital gain for
the taxable year over net short-term capital loss for such year) of an
individual stockholder will be taxed at a maximum rate of 28% in contrast to
items taxable as ordinary income which are subject to rates of up to 39.6%. The
U. S. Congress is considering in connection with its proposed balanced budget
legislation a provision which would reduce the maximum tax rate on net capital
gains. President Clinton has declared his intention to veto such legislation.
The legislation, if any, which ultimately is enacted with respect to the
taxation of net capital gains and the effective date of any such legislation is
uncertain at this time.
In the case of a corporate stockholder, capital losses are allowed only to
the extent of capital gains. In the case of a noncorporate stockholder, capital
losses are allowed only to the extent of capital gains plus the lesser of (i)
$3,000 ($1,500 in the case of a married individual filing a separate return) or
(ii) the excess of losses over such gains. Generally, a corporation may carry
its excess capital loss back three years or forward five years, subject to
limitation in the Code. Generally, in the case of a noncorporate taxpayer,
excess capital losses may be carried forward indefinitely and used each year,
subject to the $3,000 limitation ($1,500 in the case of a married individual
filing a separate return), until the loss is exhausted.
ACCOUNTING TREATMENT OF THE MERGER
The Merger will be treated, for financial statement purposes, as a sale by
the Company's stockholders to the Parent for cash. Accordingly, no gain or loss
will be recognized by the Company as a result of the Merger. The Merger will be
accounted for by the Parent as a purchase.
REGULATORY APPROVALS
There are no federal or state regulatory requirements that must be complied
with or approvals that must be obtained in connection with the Merger other than
the approval of the Company's stockholders as required by the Nevada General
Corporation Law.
FINANCING OF THE MERGER
The Purchaser's obligation to consummate the Merger is conditioned upon,
among other things, the availability of sufficient funds to pay the Merger
Consideration and to replace certain existing indebtedness of the Company. The
total amount of funds required for such purposes is approximately $65.1 million.
Of this amount, approximately $46.8 million will be used to pay the aggregate
Merger Consideration. See "Information Pertaining to the Parent, the Purchaser
and Related Persons" for a description of the equity contributions to be made to
the Parent.
Set forth below is a summary description of the financing for the Merger.
Consummation of such financing is subject to, among other things, the
negotiation and execution of definitive financing agreements on terms
satisfactory to the parties thereto. Because definitive financing agreements
relating to such financing have not been finalized, there can be no assurance
that the terms set forth below will be contained in such agreements or that such
financing will be obtained.
The Purchaser has executed a commitment letter (the "Senior Commitment")
pursuant to which The First National Bank of Chicago ("First Chicago") has
committed to provide the Purchaser senior secured loans of up to $40,000,000
(the "Senior Loans"). The Senior Commitment will expire on November 30, 1995,
unless definitive loan documents are executed on or before such date. The
Purchaser has submitted a written request to First Chicago to extend the Senior
Commitment expiration date.
The Senior Loans will bear interest at a rate equal to, at the Purchaser's
option, either: (1) First Chicago's Alternate Base Rate plus 1.75% per annum,
or (2) the Eurodollar Rate plus 3.0% per annum. First Chicago's Alternate Base
Rate is the higher of (i) First Chicago's corporate base rate, or (ii) the
federal funds rate plus 1/2% per annum. The Eurodollar Rate is the rate offered
by First Chicago in the London interbank market. The Senior Loans will be
(a) secured by a first perfected security interest in, with certain exceptions,
all of the Company's assets, (b) subject to mandatory prepayment upon a sale of
equity or assets and upon the generation of cash exceeding certain targets to be
set forth in the definitive credit agreement, and (c) subject to a number of
conditions including, but not limited to, negotiation and execution of loan
documents which will include representations, warranties and covenants which are
satisfactory to First Chicago, completion of First Chicago's due diligence,
First Chicago's satisfaction with other components of the Merger including the
consideration to be paid, the equity contributions and the other debt
arrangements. The Senior Loan consists of two facilities: (1) a $20,000,000
term loan (the "Term Loan"), and (2) a $20,000,000 revolving credit (the
"Revolving Credit"). The Term Loan will (a) mature after six years, and (b) be
repaid in quarterly installments which shall be $500,000 per quarter in the
first year of the Term Loan, $750,000 per quarter in the second and third years
of the Term Loan, and $1,000,000 per quarter in the fourth through sixth years
of the Term Loan. The Revolving Credit will mature in six years.
On September 8, 1995, the Purchaser executed a commitment letter (the
"Mezzanine Commitment") pursuant to which BancBoston Capital Inc. ("BBC")
committed to provide up to $10,000,000 of mezzanine financing (the "Mezzanine
Loan"). The Mezzanine Loan will (a) bear interest at the rate of 12.5% per
annum, (b) mature in eight years (with quarterly payments of principal in the
amount of $833,333 commencing in the first quarter of the sixth year of the
Mezzanine Loan), (c) provide BBC with the right to appoint a board member to the
Board of the Parent, and (d) be subject to a number of conditions, including but
not limited to, negotiation and execution of loan documents satisfactory to BBC,
BBC's satisfaction with the other components of the Merger including the equity
to be contributed, the terms of the other debt and the execution of a number of
inter-creditor agreements. In addition, the Mezzanine Commitment requires the
Purchaser to (a) provide a $50,000 non-refundable deposit, (b) pay a break-up
fee of $500,000 if the Purchaser consummates the Merger without utilizing the
Mezzanine Loan within one year of receiving the Mezzanine Commitment, (c)
maintain certain restrictive covenants, (d) execute acceptable loan and inter-
creditor agreements, (d) prepare an acceptable actuarial study of the Company's
ESOP repurchase obligations, and (e) issue a warrant to BBC to purchase 12% of
the equity in the Parent. The warrant will provide BBC with (a) the right to
put the warrant to the Parent and (b) certain registration rights.
The Company has also entered into agreements to refinance and extend some
of its existing debt in connection with the Merger. Copies of the Senior
Commitment and the Mezzanine Commitment have been filed as Exhibits to the
Schedule 13E-3. The Company intends to repay all such borrowed funds with funds
generated by the Company's operations.
EXPENSES OF THE MERGER
It is estimated that the expenses incurred by the Company in connection
with the Merger will be approximately $1,400,000 in the aggregate, comprised of
approximately $11,000 for filing fees, $890,000 for financial advisory fees in
connection with the services of PaineWebber and $60,000 (one-third paid each by
the Company, the Parent and the ESOP) in connection with the services of Baum,
$350,000 for legal fees, $48,000 for solicitation expenses, $25,000 for
directors' fees and expenses, and $16,000 for miscellaneous expenses including
printing, mailing and other distribution costs. In addition to the foregoing,
the Company has agreed to reimburse the Purchaser up to $750,000 for its costs
and expenses in consummating the Merger and $217,000 for expenses incurred in
arranging the financing of the Merger. See "The Merger Agreement -- Fees and
Expenses."
PRINCIPAL STOCKHOLDERS OF THE COMPANY
The following persons are the only persons known to the Company who, on
October 30, 1995, owned beneficially more than 5% of the outstanding shares of
the Company's Common Stock:
NAME AND ADDRESS OF AMOUNT AND NATURE OF PERCENT
BENEFICIAL OWNER BENEFICIAL OWNERSHIP OF CLASS
Big O Tires, Inc. 537,588 (1) 16.20%
Employee Stock Ownership Plan ("ESOP")
11755 East Peakview Avenue
Englewood, Colorado 80111
Balboa Investment Group, L.P. 309,500 (2) 9.33%
a California limited partnership and
Mr. Kenneth W. Pavia, Sr., the sole general
partner of this partnership
1101 East Balboa Boulevard
Newport Beach, California 92661-1313
(1) Of the 537,588 shares of Common Stock in the ESOP, approximately
501,114.78 shares of Common Stock have been allocated to participants'
accounts and approximately 36,473.22 shares of Common Stock have not
been allocated to participant's accounts. Pursuant to the provisions
of the ESOP, each participant has the right to direct the ESOP Trustee
as to how to vote the shares of Common Stock allocated to the
participant's account. The ESOP Trustee is required to vote all
allocated shares, the voting instructions for which are not timely
communicated to the Trustee, and all unallocated shares on the Merger
Agreement in the same proportion as the allocated shares for which the
Trustee receives timely voting instructions are voted.
(2) In a Schedule 13D dated May 31, 1995, as amended, the Company was
notified that these persons held these shares of Common Stock.
SECURITY OWNERSHIP OF THE COMPANY'S MANAGEMENT
The following table shows, as of October 30, 1995, the shares of the
Company's outstanding Common Stock beneficially owned by each director of the
Company and the shares of the Company's outstanding Common Stock beneficially
owned by all executive officers and directors of the Company as a group:
NAME OF AMOUNT AND NATURE OF PERCENT
BENEFICIAL OWNER BENEFICIAL OWNERSHIP(1)10) OF CLASS(10)
John B. Adams 42,004(2)(8)(9) 1.26%
Ronald D. Asher 16,109(3)(8) *
Frank L. Carney 754(8) *
Steven P. Cloward 103,969(4)(8)(9) 3.11%
Everett H. Johnston 904(8) *
Robert K. Lallatin 570(5) *
Horst K. Mehlfeldt 3,154(8) *
John E. Siipola 4,782(8) *
Ralph J. Weiger 3,003(8) *
C. Thomas Wernholm 20,914(6) *
All Current Directors and
Executive Officers as
a Group (18 persons) 292,824(2)(3)(4)(5)(6)(7)(8)(9) 8.54%
___________________
* Percent of shares of Common Stock beneficially owned by this director
does not exceed 1% of the Company's outstanding Common Stock.
(1) Unless otherwise indicated, the shares are held directly in the names
of the beneficial owners and each person has sole voting and sole
investment power with respect to the shares.
(2) Includes 1,311 shares of Common Stock owned jointly by Mr. Adams and
his wife, over which shares Mr. Adams may be deemed to have shared
voting and investment power, and includes 17,165 shares of Common
Stock that have been allocated to Mr. Adams in the ESOP, over which
shares Mr. Adams has sole voting power.
(3) Includes beneficial ownership by R&A Asher, Inc., a California
corporation ("R&A"), of 156 shares of Common Stock. Mr. Asher and his
wife each own 50% of the issued and outstanding capital stock of R&A,
and Mr. Asher may be deemed to have shared voting and investment power
over the 156 shares. Includes approximately 470 shares owned by a
retirement trust in which Mr. Asher and his wife are co-trustees.
(4) Includes 25,110 shares owned directly by Mr. Cloward's wife, over
which shares Mr. Cloward may be deemed to have shared voting and
investment power, and includes 38,250 shares that have been allocated
to Mr. Cloward in the ESOP, over which shares Mr. Cloward has sole
voting power.
(5) Includes 410 shares owned by B & G Tire, Inc. of which Mr. Lallatin is
the President and 51% owner.
(6) Includes 4,688 shares of Common Stock owned jointly by Mr. Wernholm
and his wife and over which shares Mr. Wernholm may be deemed to have
shared voting and investment power over such shares.
(7) Includes the following shares of Common Stock that have been allocated
or are to be allocated to the following executive officers not named
above who participate in the ESOP, over which shares these executive
officers will have sole voting power:
NAME NO. OF SHARES*
Dennis J. Fryer 6,963
Allen E. Jones 6,620
Ronald H. Lautzenheiser 10,369
Kelley A. O'Reilly 3,487
Gregory L. Roquet 5,600
Thomas L. Staker 6,177
Philip J. Teigen 5,415
Bruce H. Ware 7,694
___________________
* The share numbers have been rounded up or down to the nearest whole
share.
(8) Included in the above are shares of Common Stock underlying presently
exercisable options granted under the Big O Tires, Inc. Director and
Employee Stock Option Plan owned by the following directors and
executive officers:
NO. OF SHARES
UNDERLYING PRESENTLY
NAME EXERCISABLE OPTIONS
John B. Adams 4,922
Ronald D. Asher 15,483
Frank L. Carney 754
Steven P. Cloward 12,284
Everett H. Johnston 904
Allen E. Jones 632
Horst K. Mehlfeldt 3,154
John E. Siipola 3,782
Philip J. Teigen 833
Bruce H. Ware 302
Ralph J. Weiger 1,356
C. Thomas Wernholm 16,226
(9) Included in the above share figures are shares of restricted Common
Stock granted under the Big O Tires, Inc. Long Term Incentive Plan,
over which shares the following executive officers have sole voting
power, and includes shares of Common Stock underlying presently
exercisable options granted under the Long Term Incentive Plan:
NAME NO. OF SHARES NO. OF OPTIONS
John B. Adams 7,552 11,054
Steven P. Cloward 11,370 16,955
Dennis J. Fryer 1,716 0
Allen E. Jones 1,716 4,684
Ronald H. Lautzenheiser 3,495 3,804
Kelley A. O'Reilly 2,065 0
Gregory L. Roquet 1,907 4,684
Thomas L. Staker 4,479 3,681
Philip J. Teigen 1,634 1,841
Bruce H. Ware 1,764 4,684
(10) The beneficial ownership and percentages for each person and the group
have been reported and calculated as if the presently exercisable
options owned by each person or the group referred to in the preceding
footnotes had been exercised.
PRICE RANGE OF COMPANY COMMON STOCK AND DIVIDEND HISTORY
The shares of Common Stock are traded on the NASDAQ National Market System
under the symbol "BIGO." The following table sets forth the high and low
prices, as reported by the NASDAQ National Market System, for each quarter
commencing January 1, 1993. These quotations have been rounded to the nearest
eighth, reflect inter-dealer prices, without retail mark-up, mark-down or
commission and may not represent actual transactions. Stockholders are urged to
obtain current quotations.
HIGH LOW
1993
First Quarter 14 1/4 11 1/8
Second Quarter 16 3/8 10 7/8
Third Quarter 17 1/4 13 1/4
Fourth Quarter 16 1/2 13 1/2
1994
First Quarter 16 3/4 12 3/4
Second Quarter 16 3/4 13 1/8
Third Quarter 16 3/4 14 1/2
Fourth Quarter 17 7/8 15 1/4
1995
First Quarter 16 1/4 12 7/8
Second Quarter 15 1/4 12 1/2
Third Quarter 15 1/4 12 3/4
Fourth Quarter
(through ____, 1995)
On May 31, 1995, June 6, 1995 and July 21, 1995, the last days the Common
Stock traded prior to the public announcements that the Company had (i) received
the Merger proposal at $16.50 per share of Common Stock from Senior Management
and the Dealers (ii) the Investment Committee approved in principle the $16.50
per share Merger proposal and (iii) the Company entered into the Merger
Agreement providing for the Merger of Purchaser into the Company for the Merger
Consideration, the closing sale prices of the shares of Common Stock (as
reported on the NASDAQ National Market System) were $13.75, $14.25 and $14.375
per share, respectively. The closing sale price of the shares of Common Stock
(as represented on the NASDAQ National Market System) was $_______________ on
__________________, 1995.
The Company has never paid any cash dividends on its shares of Common
Stock. Currently, the Company is subject to various covenants and restrictions
under loan agreements with First Chicago, AT&T Capital Corporation, The Kelly-
Springfield Tire Company ("Kelly") and other lenders and holders of long term
notes previously issued by the Company. These restrictions limit or prohibit
the Company from, among other things, paying cash dividends on its capital
stock. One or more of these loan or credit facilities will be refinanced or
restructured in connection with the financing of the Merger, but it is unknown
whether the restrictions on payment of dividends will be modified. See "Special
Factors -- Financing of the Merger."
SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY
The following table sets forth consolidated financial data for, and as of
the end of each of the nine (9) month periods ended September 30, 1995, and
1994, and for, and as of the end of, each of the years in the five-year period
ended December 31, 1994, and are derived from the consolidated financial
statements of the Company and its subsidiaries. The consolidated financial
statements of the Company as of December 31, 1994 and 1993, and for each of the
three years in the period ended December 31, 1994, appearing in the Company's
Annual Report on Form 10-K for the year ended December 31, 1994, which
accompanies this Proxy Statement, have been audited by Deloitte & Touche LLP,
independent auditors, as set forth in their report thereon appearing therein.
The Company does not expect Deloitte & Touche LLP to be present at the Special
Meeting.
<PAGE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30, YEAR ENDED DECEMBER 31,
----------------- --------------------------------------------
1995 1994 1994 1993 1992 1991 1990
(in thousands except share information)
<S> <C> <C> <C> <C> <C> <C> <C>
STATEMENT OF
OPERATIONS DATA:
Operating Revenues,
net $107,672 $94,132 $127,678 $122,960 $119,799 $113,836 $106,902
Income before income
taxes and
cumulative effective of
change in accounting
principle 2,492 2,506 4,641 3,280 4,766 3,139 1,264
Provision for income
tax 1,047 1,052 1,950 1,400 1,983 1,388 557
Income before
cumulative effect of
change in accounting
principle 1,445 1,454 2,691 1,880 2,783 1,751 707
Cumulative effect of
change in
accounting principle --- --- --- 285 --- --- ---
Net income 1,445 1,454 2,691 1,595 2,783 1,751 707
PER SHARE DATA
Income before
cumulative effect
of change in
accounting principle $ .43 $ .44 $ .80 $ .55 $ .80 $ .50 $ .20
Net income $ .43 $ .44 $ .80 $ .47 $ .80 $ .50 $ .20
Weighted average
shares outstanding (1) 3,777,083 3,337,539 3,347,892 3,409,962 3,497,044 3,506,024 3,502,924
AS OF SEPTEMBER 30, AS OF DECEMBER 31,
----------------- --------------------------------------------
1995 1994 1994 1993 1992 1991 1990
(in thousands)
BALANCE SHEET DATA
Current assets(2) $ 35,564 $36,351 $ 33,718 $ 24,136 $ 29,494 $ 29,684 $ 36,202
Total assets(2) 69,846 70,195 61,968 56,607 57,679 57,111 63,176
Current liabilities(2) 13,808 14,426 9,051 12,251 12,161 9,023 19,707
Long-term debt and
capital lease obliga-
tions, net of current
portion 17,376 20,307 15,906 11,037 9,359 14,648 11,883
Other long-term
liabilities 1,311 1,449 1,433 856 692 852 951
ESOP obligations 188 449 449 975 1,277 1,656 ---
Stockholders' equity 37,163 33,574 35,129 31,488 34,190 30,932 30,635
_______________________
</TABLE>
(1) Adjusted to reflect the 1-for-5 reverse split of the Company's Common
Stock that was effective June 15, 1992.
(2) Amounts for years prior to 1992 have been restated to reflect the
reclassification of vendor receivables to accounts payable.
(3) The per share book values of the Common Stock on September 30, 1995,
and December 31, 1994, were $11.20 and $10.62, respectively.
(4) The ratios of earnings to fixed charges for the nine month periods
ended September 30, 1995 and 1994, and for the years ended December
31, 1994 and 1993, were _____, _____, _____ and _____, respectively.
THE MERGER AGREEMENT
PARTIES TO THE MERGER AGREEMENT
BIG O TIRES, INC., a Nevada corporation (the "Company"), is engaged
primarily in the business of franchising Big O Tire retail stores (the "Retail
Stores") and supplying Retail Stores with tires and related automotive products
for sale. The Company also owns and operates Retail Stores and, on a limited
basis, engages in site selection and real estate development for Retail Stores.
The mailing address of the Company's principal executive offices and corporate
headquarters is 11755 East Peakview Avenue, Suite A, Englewood, Colorado 80111
and its telephone number is (303) 790-2800.
BOTI HOLDINGS, INC., a Nevada corporation (the "Parent"), is a holding
company organized in January 1995 to participate in the Merger and to acquire
all of the capital stock of the Company. See "Information Pertaining to the
Parent, the Purchaser and Related Persons." The Parent has engaged in no other
business activities since its inception other than those related to the
acquisition of the Company. The mailing address of the principal executive
offices of both the Parent and the Purchaser is the same as the Company's
address, 11755 East Peakview Avenue, Englewood, Colorado 80111, and their
telephone number is (303) 790-2800.
BOTI ACQUISITION CORP., a Nevada corporation (the "Purchaser"), has been
organized as a wholly-owned subsidiary of the Parent for the purpose of
effecting the Merger and has engaged in no other business activities other than
those related to the acquisition of the Company. See "Information Pertaining to
the Parent, the Purchaser and Related Persons."
DESCRIPTION OF THE MERGER AGREEMENT
THE FOLLOWING IS A SUMMARY OF THE MERGER AGREEMENT, THE FULL TEXT OF WHICH
IS INCLUDED HEREIN AS APPENDIX A. THIS SUMMARY IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO THE MERGER AGREEMENT. STOCKHOLDERS ARE URGED TO READ THE MERGER
AGREEMENT IN ITS ENTIRETY FOR A MORE COMPLETE DESCRIPTION OF THE MERGER. THE
FOLLOWING DESCRIPTION ALSO CONTAINS OTHER INFORMATION ABOUT THE MERGER.
TERMS OF THE MERGER. Pursuant to the Merger Agreement, the Purchaser will
merge into and with the Company, with the Company continuing as the surviving
corporation. The Merger will occur immediately upon the filing of the
Certificate of Merger with the Secretary of State of the State of Nevada (the
date and time of such filing referred to herein as "Effective Time"). The name
of the Company will remain "Big O Tires, Inc." At the Effective Time, the
Articles of Incorporation and Bylaws of the Company as in effect immediately
prior to the Effective Time until thereafter amended, will be the Articles of
Incorporation and Bylaws of the Purchaser. The officers and directors of the
Purchaser immediately prior to the Effective Time will be the initial officers
and directors of the Company until their successors are elected and qualified,
as the case may be. At the Effective Time, all issued and outstanding shares of
Common Stock owned by the stockholders of the Company other than the Excluded
Shares will be canceled and extinguished, and will be converted into the right
to receive the Merger Consideration. Payments of cash to stockholders of the
Company and to option holders will be made as soon as possible after the
Effective Time upon surrender by holders of their certificates (in the case of
stockholders), together with the appropriate transmittal form, to the Exchange
Agent referred to below. See "The Merger Agreement -- Exchange of
Certificates." Each Excluded Share owned will be exchanged for one share of the
Parent's common stock. In the Merger, each share of $.01 par value common stock
of the Purchaser which is issued and outstanding immediately prior to the
Effective Time will be converted into and become one share of Common Stock of
the Surviving Corporation. As a result of the Merger, the separate corporate
existence of the Purchaser will cease and the Company will continue to operate
as a wholly-owned subsidiary of the Parent.
All properties and assets of every kind held by the Company and the
Purchaser at the Effective Time will become property and assets of the Company,
and the Company will continue to be liable for all of its obligations, debts and
other liabilities, as well as those, if any, of the Purchaser.
The Company expects the Effective Time to occur before ________________,
1996. The Effective Time cannot occur until all conditions to the Merger have
been satisfied or waived. See "The Merger Agreement -- Conditions to the
Merger."
The Merger Agreement provides for the exercise of appraisal or other rights
as may be available under Nevada law. However, no appraisal rights or right to
dissent are available for the Merger under Nevada law. See "The Special Meeting
- -- Absence of Appraisal Rights and Right to Dissent." Consequently, if the
Merger is consummated, holders of all shares of Common Stock (other than holders
of Excluded Shares) will be required to accept the Merger Consideration.
STOCK OPTIONS. The Company is required by the Merger Agreement to make all
reasonable efforts to cancel and settle immediately prior to the Effective Time
each option to purchase shares of Common Stock or stock appreciation rights
(collectively, the "Options") which have been granted under any Company stock or
compensation plan or arrangements to all current or former employees of the
Company who are not directors, unless the holder has agreed to convert or
exchange without receipt of payment therefor, the Options for options or shares
of the stock of the Parent, the Purchaser or the Company. Holders who are
directors of the Company, except Messrs. Steven P. Cloward and John B. Adams,
will have their Options canceled and will be entitled to receive only a cash
payment. Each holder of an Option will be entitled to receive, in lieu of each
share which such holder otherwise would have received upon exercise of the
Option, cash equal to the amount (if any) by which $16.50 exceeds the exercise
price per share payable pursuant to such Option ("Option Settlement Amount")
provided that the Company is required to cancel for a lesser amount any Option
issued under a plan which allows the Option to be canceled for less than the
Option Settlement Amount. Taxes and other required withholdings will be
deducted from the cash payments. Messrs. Cloward and Adams, as stockholders of
the Parent and part of Senior Management, will convert their Options into
options to purchase the common stock of the Parent. See "Information Pertaining
to the Parent, the Purchaser and Related Persons." The Company is not permitted
to grant any additional Options except certain options that the Company may
grant on January 1, 1996, pursuant to the Company's Director and Employee Stock
Option Plan. On or before the Effective Time, the Company will cause all of its
stock option, stock appreciation and compensation plans to be terminated.
CONDITIONS TO THE MERGER. The obligations of the Parent, the Purchaser and
the Company to effect the Merger are conditioned on, among other things (i) the
Merger Agreement receiving the requisite approval of the Company's stockholders
(see "The Special Meeting -- Vote Required to Approve the Merger"); (ii) there
being no preliminary or permanent injunction or other order, decree, ruling or
law or regulation which would prevent the consummation of the Merger; and (iii)
and receipt by the Company of all material consents or authorizations from
governmental authorities or parties to contracts.
The obligations of the Company to effect the Merger additionally are
conditioned on (i) the performance in all material respects by the Parent and
the Purchaser of the obligations to be performed by them at or prior to the
Effective Time; and (ii) the truth and correctness in all material respects of
the representations and warranties of the Parent and the Purchaser contained in
the Merger Agreement.
The obligations of the Parent and the Purchaser to effect the Merger
additionally are conditioned on (i) the performance in all material respects by
the Company of the obligations to be performed by it under the Merger Agreement;
(ii) the truth and correctness in all material respects of the representations
and warranties of the Company contained in the Merger Agreement; (iii) the
Purchaser having received financing sufficient to consummate the Merger; (iv)
cancellation and settlement of all stock options except Senior Management
Options; (v) redemption of the Rights; (vi) compliance with applicable Nevada
law; and (vii) at least 80% of the shares of the Common Stock held by the ESOP
being converted into the common stock of the Parent. The terms of the Merger
Agreement may be modified or waived, subject to certain restrictions. See "The
Merger Agreement -- Modification and Waiver."
The Merger Agreement also requires that the financial advisor to the ESOP
deliver an opinion that the consideration to be received by the participants in
the ESOP who elect to convert the Common Stock allocated to their accounts in
the ESOP into an investment in the common stock of the Parent, is fair from a
financial point of view to such participants. On ________, George K. Baum &
Company delivered its written opinion to the ESOP stating that the consideration
to be provided pursuant to such conversion is fair to the ESOP participants from
a financial point of view. See "Special Factors."
REPRESENTATIONS AND WARRANTIES. The Company, the Parent and the Purchaser
have made certain representations and warranties to each other in the Merger
Agreement, including, among other things, representations and warranties
relating to their respective organizations, qualifications and capitalizations,
authorizations to enter into the Merger Agreement, that the Merger and Merger
Agreement do not conflict or fail to comply with any other agreements,
instruments, their organizational documents, the consents and approvals that
must be obtained in connection with the Merger, and the absence of brokers or
finders.
The Company has made certain additional representations and warranties
(which representations and warranties are subject, in certain cases, to
specified exceptions), including representations and warranties as to the
following: (a) the accuracy of the Company's filings with the United States
Securities and Exchange Commission and the financial statements of the Company;
(b) the absence of any material adverse change to the Company before the
Effective Time; (c) the absence of undisclosed material liabilities or
litigation; (d) fairness of the transaction to disinterested stockholders; (e)
existence and status of employee benefit plans; and (f) the payment of taxes.
CONDUCT OF BUSINESS PENDING MERGER. The Merger Agreement provides that
neither the Purchaser nor the Parent will have any claim against the Company for
any breach of the covenants regarding the conduct of the Company's business
pending the Merger unless the action which resulted in the breach was approved
by the Board or Investment Committee and no attempt was made at a later date by
the body approving such action to prevent its occurrence, or was known of by a
member of the Investment Committee or the Chairman or Vice Chairman of the Board
and no attempt was made by the Investment Committee to prevent its occurrence.
In the Merger Agreement, the Company covenants and agrees that, prior to the
Effective Time, unless the Purchaser otherwise agrees in writing, or except as
disclosed in the Disclosure Certificate to the Merger Agreement or as otherwise
expressly contemplated by the Merger Agreement, neither the Company nor any of
its subsidiaries will take any action except in the ordinary course of business
and consistent with past practices, and the Company will use its best efforts to
maintain and preserve its business organization, assets, prospects, employees
and advantageous business relationships. Even if the action proposed to be
taken would not violate the provisions described in the preceding sentence, but
would involve possible expenditures, contingent liabilities or the acquisition
or disposition of assets exceeding $100,000, any member of a committee
consisting of Messrs. John B. Adams, Steven P. Cloward, Horst K. Mehlfeldt and
John E. Siipola (the "Management Committee") has the right to object in writing
to the taking of such action prior to the time the Company is legally bound to
the taking thereof. Any notice of objection must be delivered to all members of
the Management Committee and the contemplated action is not to be taken unless
the members of the Management Committee unanimously approve the taking of such
action. If the action proposed to be taken would violate the provisions
described in the second sentence of this paragraph and would involve
expenditures or the acquisition or disposition of assets exceeding $100,000 in
value, the Management Committee is to be given advance written notice of all
such actions. If any member of the Management Committee objects in writing
within five (5) days after written notice of such action is given to any such
noticed action, such action only is to be taken if the members of the Management
Committee unanimously approve the taking of such action or, failing such
approval, the Parent and the Company approve in writing the taking of such
action.
The Company has also agreed that neither the Company nor any of its
subsidiaries will, directly or indirectly, do any of the following: (i) incur
any expenses in contemplation of a reorganization or restructuring of the
Company; (ii) amend its Articles of Incorporation or Bylaws or similar
organizational documents; (iii) split, combine or reclassify any shares of its
capital stock or declare, set aside or pay any dividend or make any
distribution, payable in cash, stock, property or otherwise with respect to its
capital stock; (iv) transfer the stock of any subsidiary to any other subsidiary
or any assets or liabilities to any new subsidiary or, except in the ordinary
course of business and consistent with past practice, to any existing
subsidiary; (v) adopt a plan of liquidation or resolutions providing for the
liquidation, dissolution, merger, consolidation or other reorganization of the
Company except the Merger; (vi) amend, modify, change or replace the engagement
letter of PaineWebber; or (vii) authorize or propose any of the foregoing, or
enter into any contract, agreement, commitment or arrangement to do any of the
foregoing.
In addition, the Company has agreed that neither the Company nor any of its
subsidiaries will, directly or indirectly: (i) issue, sell, pledge, encumber or
dispose of, or authorize, propose or agree to the issuance, sale, pledge,
encumbrance or disposition of, any shares of, or any options, warrants or rights
of any kind to acquire any shares of, or any securities convertible into or
exchangeable for any shares of, its capital stock or any other equity
securities, or any other securities in respect of, in lieu of, or in
substitution for shares of Common Stock outstanding on the date of the Merger
Agreement except for shares of Common Stock issuable upon exercise of Options
outstanding on that date and which by their terms are or become exercisable at
or prior to the Effective Time; (ii) acquire (by merger, consolidation or
acquisition of stock or assets) any corporation, partnership or other business
organization or division thereof or make any material investment either by
purchase of stock or securities, contributions to capital, property transfer or
purchase of any material amount of property or assets, in any other individual
or entity; (iii) other than indebtedness incurred from borrowings made pursuant
to existing lending arrangements and other than as set forth in the Disclosure
Schedule to the Merger Agreement, incur any indebtedness for borrowed money or
issue any debt securities or assume, guarantee, endorse (other than to a Company
account) or otherwise as an accommodation become responsible for, the
obligations of any other individual or entity, or make any loans or advances,
except for advances to dealers and guarantees of leases made in the ordinary
course of business and consistent with past practice; (iv) release or relinquish
any material contract right; (v) settle or compromise any pending or threatened
suit, action or claim by or against the Company involving a payment by the
Company exceeding $100,000; or (vi) authorize or propose any of the foregoing,
or enter into or modify any contract, agreement, commitment or arrangement to do
any of the foregoing.
The Company has also agreed that the Company and its subsidiaries will use
their best efforts to keep in place their current insurance policies, including
but not limited to director and officer liability insurance, which are material
(either individually or in the aggregate), and notwithstanding such efforts, if
any such policy is canceled, the Company will use its best efforts to replace
such policy or policies.
The Company has agreed that neither the Company nor any of its subsidiaries
will, and the Company will use its best efforts to cause its affiliates,
officers, directors, employees, representatives and agents not to, directly or
indirectly, solicit, initiate or participate in discussions or negotiations
with, or provide any information to, any corporation, partnership, person or
other entity or group (other than the Purchaser or an affiliate or an associate
of the Purchaser) concerning, or enter into any agreement providing for, any
merger, sale of all or substantially all assets, sale of shares of capital stock
or similar transactions involving the Company or any subsidiary or division of
the Company, provided that the Investment Committee on behalf of the Company may
furnish or cause to be furnished information and may participate in such
discussions or negotiations and enter into such agreement if it believes in good
faith, after consultation with its financial adviser and the receipt of written
advice of counsel as to the legal considerations involved, that the failure to
provide such information or participate in such discussions or negotiations or
enter into such agreement would be likely to involve the members of the
Investment Committee in a breach of their fiduciary duties.
The Purchaser and the Company have each agreed to take all such reasonable
and lawful action as may be necessary or appropriate in order to effectuate the
Merger as promptly as possible.
ADDITIONAL AGREEMENTS. In the Merger Agreement, the Company, the Purchaser
and the Parent have agreed to certain other matters, including the preparation
of all documents required to be submitted under federal and state law to
stockholders and federal or state agencies; to submit the proposed Merger to a
vote of the stockholders of the Company, subject to the right of the Investment
Committee and the Board of Directors to withdraw their recommendations based on
the written advice of legal counsel or in accordance with the exercise of their
fiduciary responsibilities; the cancellation, settlement, conversion or exchange
of all outstanding Options as well as termination of all plans pursuant to which
such options are granted or issued; the payment of certain fees as set forth
below and to provide indemnification to certain directors and officers of the
Company and any of its subsidiaries. See "Directors and Executive Officers of
the Company."
FEES AND EXPENSES. All costs and expenses, except as described below,
incurred in connection with the Merger are to be paid by the party incurring
such expenses.
If (i) the Merger Agreement is terminated for any reason (ii) prior to such
termination (x) any Person (as defined below) (A) makes a written proposal to
engage in any transaction described in clauses (u) (v) or (w) of clause (iii) of
this paragraph (an "Acquisition Proposal") to the Company or any authorized
director, officer or agent or (B) publicly announces an Acquisition Proposal, or
(y) the Company or any authorized director, officer or agent of the Company
participates in discussions or negotiations with, or provides confidential
information to, any Person concerning an Acquisition Proposal, and (iii) within
one (1) year from the date of the Merger Agreement (u) any corporation,
partnership, person, entity or "group" (as that term is used in Section 13(d)(3)
of the Securities Exchange Act of 1934), including the Company or any of its
subsidiaries but excluding the Parent, the Purchaser or any of their affiliates
and excluding any group of which Parent, the Purchaser or any of their
affiliates is a member (a "Person"), shall have acquired all or a substantial
portion of the assets of the Company or consummated a merger or consolidation
with, or other acquisition of, the Company (v) any Person shall have acquired
beneficial ownership (as defined in Rule 13d-3 under the Securities Exchange Act
of 1934) of 35% or more of the shares of Common Stock then outstanding, or (w) a
"change in control" of the Company involving a Person within the meaning of Item
1 of Form 8-K under the Securities Exchange Act of 1934 shall have occurred, the
Company must promptly, but in no event later than five (5) business days after
consummation of any transaction referred to in clauses (u) (v) or (w) above, pay
to the Purchaser (by transfer of same-day funds to an account designated by the
Purchaser for such purpose) an amount equal to (i) $1,000,000, less (ii) any
funds paid by the Company to the Purchaser pursuant to the provisions described
in the second following paragraph; provided such amount shall be payable by the
Company with respect to any such transaction referred to in clauses (u) (v) and
(w) above only if (a) the transaction provides for the Company or the holders of
any shares of Common Stock being purchased in such transaction to receive
consideration per share having an indicated value in excess of $16.50 per share,
or (b) the amount of consideration received in such transaction is not readily
determinable on a per share basis and the Investment Committee or another
committee of one or more disinterested members of the Board of Directors of the
Company fails to make a good faith determination that such transaction is less
favorable to the stockholders of the Company from a financial point of view than
the Merger ((a) or (b) being a "Higher Offer").
Prior to the execution of the Merger Agreement, the Company agreed to
advance up to $175,000 to the organizers of the Purchaser to cover their
expenses related to the formation of the Purchaser, the formulation of a
proposal to acquire the shares of Common Stock and the preparation and
negotiation of the Merger Agreement. The Company also has agreed that it will
within five (5) business days after receipt of each notice of the incurrence
thereof by the Purchaser to the Company, advance to the Purchaser all
Reimbursable Expenses (as defined in the next paragraph); provided that the
Company is not obligated to pay under this paragraph in excess of an aggregate
amount of $750,000 (including the $175,000 referred to above, but excluding all
funds advanced or reimbursed with respect to Financing Fees (as defined in the
next paragraph), which expenses are not subject to such limit, but shall not
exceed $217,000; provided further, that the Company is not obligated to pay
under this paragraph in excess of an aggregate of $500,000 (including any
amounts advanced or reimbursed under the provisions described in this paragraph,
but excluding all funds advanced or reimbursed with respect to Financing Fees
which expenses are not subject to such limit, but shall not exceed $217,000)
unless 85% of the stores owned by the franchised dealers of the Company who
directly or indirectly are stockholders of the Purchaser and whose franchise
agreements expire prior to July 1, 1999 have extended the term of their
franchise agreements at least through the earlier of (x) July 1, 2002, or (y)
the date three (3) years after such franchise agreement would have expired;
provided that such franchised dealers will not be required to pay any fees in
connection with such extension. Any franchised dealer of the Company who
directly or indirectly is a stockholder of the Purchaser and whose franchise
agreement expires on or after July 1, 1999, has the right to extend such
agreement for up to three (3) additional years without the payment of any fee in
connection with such extension.
If the Merger Agreement is terminated or the Merger is not consummated for
any reason, the Company will, within five (5) business days after notice by the
Purchaser to the Company, reimburse the Purchaser for all reasonable out-of-
pocket costs and expenses (including, without limitation, reasonable commitment
fees, reasonable termination fees, reasonable attorney fees and expenses
incurred by potential lenders which the Purchaser is obligated to reimburse, and
other fees and expenses incurred in connection with arranging financing for the
Merger (collectively "Financing Fees"), legal fees and expenses, appraisal fees,
fees and expenses of financial advisors and fees and expenses for accountants)
incurred by the Purchaser, the Parent, or on their behalf in connection with the
preparation or negotiation of the Merger Agreement or of the transactions
contemplated hereby or otherwise incurred in contemplation of the Merger
Agreement, the Merger or the other transactions contemplated by the Merger
Agreement which have not otherwise been reimbursed by the Company ("Reimbursable
Expenses"), provided that (i) the Company is not obligated to pay under this
paragraph in excess of an aggregate of $750,000 (including any amounts advanced
or reimbursed under the above paragraph, but excluding all funds advanced or
reimbursed with respect to Financing Fees which expenses are not subject to such
limit but shall not exceed $217,000) (ii) except for the reimbursement or
advance of expenses related to Financing Fees, the Company is not obligated to
pay any additional amount under this paragraph if the Purchaser has been paid
the amount provided in the second paragraph above (iii) the Company has the
right to review all expense receipts (other than receipts which contain
privileged or confidential information), and (iv) the Company is not obligated
to pay under this paragraph in excess of an aggregate of $500,000 (including any
amounts advanced or reimbursed under the above paragraph, but excluding all
funds advanced or reimbursed with respect to Financing Fees which expenses are
not subject to such limit, but shall not exceed $217,000) unless 85% of the
franchised dealers of the Company who directly or indirectly are stockholders of
the Purchaser and whose franchise agreements expire prior to July 1, 1999, have
extended the term of their franchise agreements at least through the earlier of
(x) July 1, 2002, or (y) the date three years after such franchise agreement
would have expired; provided that such franchised dealers will not be required
to pay any fees in connection with such extension.
MODIFICATION AND WAIVER. The Merger Agreement may be amended by a written
instrument executed by each of the Boards of Directors of the Company (including
the Investment Committee), the Purchaser and the Parent, or the time for
performance of any obligation or act or compliance with any agreement or
condition may be extended or waived by a party, provided that no amendment which
would materially adversely affect the stockholders of the Company may be made
without further approval of the stockholders after approval of the Merger by the
stockholders has been obtained.
Termination of the Merger Agreement. The Merger Agreement may be
terminated at any time prior to the Effective Time, notwithstanding approval of
the Merger by the stockholders of the Company, by mutual written consent of the
Boards of Directors of the Purchaser and the Company (including the Investment
Committee in the case of the Company). The Company or the Purchaser may
terminate the Merger Agreement if: (i) the Effective Time has not occurred by
February 28, 1996; (ii) a condition of the Merger has not been satisfied by the
Effective Time, provided that the right to terminate is not available to a party
whose failure to fulfill any obligation under the Merger Agreement has caused or
resulted in the failure of the Effective Time to occur; or (iii) the Company has
received a bona fide Higher Offer which is not matched or exceeded by the
Purchaser within five business days and the Investment Committee withdraws or
changes in a manner adverse to the Purchaser its recommendation of the Merger.
The Company may terminate the Merger Agreement for failure by the Purchaser
to perform its obligations under the Merger Agreement in any material way or if
the representations and warranties of the Purchaser are not true in any material
respect. The Purchaser may terminate the Merger Agreement if the Company enters
into or announces its intention to enter into another acquisition proposal which
would not qualify as a Higher Offer or anyone publicly announces or commences a
tender exchange or offer for the Company's Common Stock; or if certain
conditions of the Merger Agreement are unfulfilled by Company. If the Merger
Agreement is terminated it will become void and have no effect except with
respect to obligations of the parties to maintain confidentiality of information
and with respect to payment of certain expenses. See "The Merger Agreement --
Fees and Expenses." However, a party will remain liable for willful default of
its obligations under the Merger Agreement.
Exchange of Certificates. As soon as practicable after the Effective Time,
Interwest Transfer Co., Inc. (the "Exchange Agent") will mail to each record
holder of certificates representing shares of Common Stock ("Certificates") that
were converted into the right to receive cash, a letter of transmittal advising
the holders of the procedure for surrendering Certificates for payment of the
applicable Merger Consideration. Until surrendered, the Certificates will
represent only the right to receive the amount of Merger Consideration, without
interest, applicable to those shares represented by the Certificates. If
payment of the Merger Consideration is to be made to a person other than the
person in whose name the Certificate surrendered for payment is registered, that
person will be responsible for paying, or establishing the payment or non-
applicability of any transfer or other taxes required. After 180 days following
the Effective Date, a holder of Certificates may surrender the Certificates for
payment of the Merger Consideration only to the Company, but will have no
greater rights to payment than a general unsecured creditor of the Company.
After the Effective Time, no transfers of Common Stock on the transfer books of
the Company will be made. Certificates presented after the Effective Time will
be canceled and exchanged only for the applicable Merger Consideration. From
and after the Effective Time, holders of Certificates will cease to have any
other rights with respect to the Common Stock, including rights to dividends or
voting rights.
Upon surrender and exchange of a Certificate, the holder will be paid,
without interest, the applicable Merger Consideration, less any amounts required
to be withheld under applicable federal income tax backup withholding
regulations. A holder who is a United States citizen and resident (other than a
corporation) may be able to avoid backup withholding by providing the Exchange
Agent with a correct taxpayer identification number in accordance with
instructions in the letter of transmittal. Certificates should not be
surrendered until the letter of transmittal is received.
No interest will accrue or be paid on the Merger Consideration upon
surrender of the Certificates.
DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY
The following is certain information pertaining to the current directors of
the Company:
PRESENT PRINCIPAL OCCUPATION
RESIDENCE OR AND MATERIAL OCCUPATIONS
NAME BUSINESS ADDRESS DURING LAST FIVE YEARS
John B. Adams 11755 East Peakview Avenue
Englewood, Colorado 80111
Executive Vice President of
the Company since April 1990;
also a part owner of CAPS Tire
Limited Liability Company,
8151 E. Arapahoe Road,
Englewood, Colorado 80112, a
limited liability company that
has owned a franchised Big O
Tires retail store in Colorado
since November 1993; Chief
Financial Officer of the
Company since November 1988;
Vice President -- Finance of
the Company from November 1988
until April 1990; Secretary of
the Company from November 1989
until December 1990; Treasurer
of the Company since April
1987; Assistant Secretary of
the Company since December
1990; Treasurer and a Director
of the Parent and the
Purchaser since July 1995 and
January 1995, respectively.
Ronald D. Asher 729 Red Arrow Trail
Palm Desert, California
92211 Owner of interests in
approximately 28 franchised
Big O Tires retail stores in
California and Arizona that
are owned by C.S.B.
Partnership ("C.S.B.") 27131
Calle Arroyo, Suite 1703, San
Juan Capistrano, California
92675, and by a joint venture
consisting of the Company and
S.A.N.D.S. Partnership 27131
Calle Arroyo, Suite 1703, San
Juan Capistrano, California
92675.
Frank L. Carney 4849 1960 West
Houston, Texas 77066 President of Papa Johns, 4849
1960 West, Houston, Texas
77066, a limited liability
company since February 1994;
Vice Chairman, Secretary and
Director of TurboChef, Inc.,
10500 Metric Drive, #128,
Dallas, Texas 75243, a
corporation engaged in the
design, development, assembly
and marketing of commercial
ovens, since January 1994;
Chairman of the Board of
WesterN SizzliN Inc., 17090
Dallas Parkway, Dallas, Texas
75248, from November 1988 to
December 1993 and served as
its President and Chief
Executive Officer from
November 1990 to December
1993; Director of Intrust
Bank, N.A. P.O. Box 1,
Wichita, Kansas 67201, a bank,
since December 1973, and
Intrust Financial Corporation
P.O. Box 1, Wichita, Kansas
67201, a bank, since August
1982.
Steven P. Cloward 11755 East Peakview Avenue
Englewood, Colorado 80111 Member of the Office of the
Chief Executive of the Company
since February 1995 and
President of the Company since
1986; Chief Executive Officer
of the Company from 1986 to
February 1995; also a part
owner of OK Tires, Inc., 2830
West 3500 South, West Valley
City, Utah 84119, a Utah
corporation that has owned a
franchised Big O Tires retail
store in Utah since October,
1994; President and a Director
of the Parent and the
Purchaser, since July 1995 and
January 1995, respectively.
Everett H. Johnston P.O. Box 1954
45275 Mar Vista
Mendocino, California 95460 Real estate investor since
1989; Chief Financial Officer,
Secretary, Treasurer and a
Director of Simpson
Manufacturing Co., Inc. 4637
Chabot, #200, Pleasanton,
California 94588, a
manufacturer of structural
building products, from 1983
to 1989, at which time Mr.
Johnson retired.
Robert K. Lallatin Box 7373
Jackson, Wyoming Member of the Big O Tires,
Inc. Dealer Planning Board
11755 East Peakview Avenue,
Englewood, Colorado 80111,
representing franchisees of
the Company in Idaho, Montana,
western Wyoming and northern
Nevada since March 1990;
Chairman of the Personnel
Training Committee of the
Dealer Planning Board since
July 1993; part owner of B & G
Tire, Inc., 265 Northgate
Mile, Idaho Falls, Idaho
83401, an Idaho corporation,
that has owned a franchised
Big O Tires retail store in
Idaho since November 1981 and
acquired a second franchised
Big O Tires retail store in
Idaho in August 1989; B & G
Tire, Inc., also owned two Big
O Tires retail stores in
Montana, one of which was sold
in March 1990 and the other
was closed in December 1993;
also a part owner of B & G
Jackson Partnership 530 S.
Highway 89, Jackson, Wyoming
83001, an Idaho general
partnership, that has owned a
franchised Big O Tires retail
store in Wyoming since
February 1992 as a partner
with one of the Company's
subsidiaries. This store was
purchased by B & G Jackson
Partnership effective December
31, 1994.
Horst K. Mehlfeldt 11755 East Peakview Avenue
Englewood, Colorado 80111 Vice Chairman and Member of
the Office of the Chief
Executive of the Company since
February 1995; Consultant to
the Company providing
investment advisory services
from September 1994 to
February 1995; Senior Vice
President and Chief Financial
Officer of Continental General
Tire, Inc., 1800 Continental
Blvd., Charlotte, North
Carolina 28273, a tire
manufacturer and marketer,
from January 1992 to February
1994; Vice President and
Treasurer of Continental
General Tire, Inc. from
January 1989 until December
1991.
John E. Siipola 11755 East Peakview Avenue
Englewood, Colorado 80111 Member of the Office of the
Chief Executive of the Company
since February 1995; Chairman
of the Board of the Company
since December 1991; President
and owner of Barrett
Publishing, Inc., a publishing
company, 2533 North Carson
Street, Suite 1147, Carson
City, Nevada 89706, since
January 1993; consultant and
investor since May 1991;
President of the Barrett
Group, 110 Sutter Street,
Suite 909, San Francisco,
California 94104, a personnel
consulting firm, from November
1988 until May 1991.
Ralph J. Weiger 79 North French Place
Prescott, Arizona 86303 Chairman and owner of the
Moneco Group, 7E East Hanover
Avenue, Morristown, New Jersey
07962-1518, an advisor to
franchise business clients,
international marketing
companies and investment and
commercial banking clients,
from March 1982 to July 1995;
Chairman of the Board of
America's Carpet Gallery, 4395
Electric Road, S.W., Roanoke,
Virginia 24018, a franchised
upscale carpet store, from
1991 to October 1993.
Chairman, President and Chief
Executive Officer of Midas
International Corp., 225 N.
Michigan Avenue, Chicago,
Illinois 60601, a franchisor
of exhaust, brake and
suspension services for
vehicles, from 1971 until 1978
and Vice Chairman and
President of Jiffy Lube
International, Inc., P.O. Box
2967, Houston, Texas 77252-
2967, a franchisor of fast oil
change systems for vehicles,
from 1983 until 1985. A
director of the International
Franchise Association from
1976 until 1979 and President
in 1979.
C. Thomas Wernholm 435 Reflections Circle #22
San Ramon, California 94583 President and Chief Executive
Officer for D. Wernholm &
Sons, Industrial Contractors,
an industrial painting
contractor; Chairman of the
Board of Loomis Industries, a
company owned primarily by the
Wernholm family that
manufactures paraline
instruments. The address of
both companies is 927 A 40th
Avenue, Oakland, California
94601.
The following is certain information pertaining to the current executive
officers of the Company who are not also directors of the Company:
PRESENT PRINCIPAL OCCUPATION
RESIDENCE OR AND MATERIAL OCCUPATIONS
NAME BUSINESS ADDRESS DURING LAST FIVE YEARS
Dennis J. Fryer 11755 East Peakview Avenue
Englewood, Colorado 80111 Regional Vice President -
Central Region of the Company
Since October 1992; New Store
Opening Specialist of the
Company from January 1990 to
October 1992.
Allen E. Jones 640 Park East Boulevard
New Albany, Indiana 47151 Regional Vice President -
Southeast Region of the
Company since December 1990.
Ronald H.
Lautzenheiser 11755 East Peakview Avenue
Englewood, Colorado 80111 Vice President - Business
Development of the Company
since November 1993; Vice
President - Marketing of the
Company from March 1990 to
November 1993, and employee of
the Company since December
1989.
Kelley A. O'Reilly 11755 East Peakview Avenue
Englewood, Colorado 80111 Vice President - Marketing of
the Company since November
1993; Director, President and
Treasurer of Impact
Advertising, Inc., 11755 East
Peakview Avenue, Englewood,
Colorado 80111, an
advertising agency for the
Company's franchised dealers,
since August 1994; Marketing
Director of the Company from
July 1991 to October 1993;
Advertising Director for
Western Washington Advertising
Trust, 1901 Auburn Way North,
Suite A, Auburn, Washington
98002, an advertising trust,
from March 1990 to June 1991.
Gregory L. Roquet 3333 Vaca Valley
Parkway Suite 100
Vacaville, California 95688 Regional Vice President - West
Central Region of the Company
since May 1993 and Regional
Vice President - Southwest
Region of the Company since
July 1991; Regional Director
of Operations - Southwest
Region of the Company from
December 1990 to July 1991.
Thomas L. Staker 11755 East Peakview Avenue
Englewood, Colorado 80111 Senior Vice President -
Operations of the Company
since January 1993; also a
part owner in OK Tires, Inc.,
2830 West 3500 South, West
Valley City, Utah 84119, a
Utah corporation, that owns a
franchised Big O Tires retail
store in Utah since October
1994; Vice President -
Operations of the Company from
December 1991 to December
1992; President and Director
of Staker Management, Inc.,
6043 West 10930 North,
Highland, Utah 84004, a
provider of consulting
services to the Company's
franchisees, from March 1991
to December 1991; President
and Director of Willow
Investments, Inc., 954
Westfield Road, Alpine, Utah
84003, a wholesaler and
manufacturer of clothing, from
October 1988 to November 1991;
25% stockholder, Secretary and
Director of Tad Tire, Inc.,
3000 Valmont, Boulder,
Colorado 80301, a franchisee
of the Company, from August
1982 to the present.
Philip J. Teigen 11755 East Peakview Avenue
Englewood, Colorado 80111 Secretary of the Company since
December 1990; General Counsel
of the Company since August
1990; Secretary of the Parent
and the Purchaser since July
1995.
Bruce H. Ware 3511 South T.K. Avenue
Boise, Idaho 83706 Regional Vice President -
Northwest Region of the
Company since December 1990
and Acting Corporate Manager
of Purchasing of the Company
since December 1995.
All of the directors and executive officers of the Company are citizens of
the United States except for Horst K. Mehlfeldt who is a citizen of the Federal
Republic of Germany.
INTEREST OF CERTAIN PERSONS IN THE MERGER
As described below under the heading "Information Pertaining to the Parent,
the Purchaser and Related Persons," Steven P. Cloward and John B. Adams, both of
whom are directors and officers of the Company, will be shareholders, officers
and directors of the Parent. In addition, Ronald D. Asher and Robert K.
Lallatin, directors of the Company, will be indirect shareholders of the Parent.
Finally, Ms. O'Reilly and Messrs. Findlay, Fryer, Jones, Lautzenheiser, Roquet,
Staker, Teigen and Ware, who are officers of the Company, will be shareholders
or shareholders and officers of the Parent.
The Company has entered into Stock Appreciation Rights Agreements (the "SAR
Agreements") with John E. Siipola, Horst K. Mehlfeldt and Steven P. Cloward
effective February 15, 1995. Each SAR Agreement grants each person 100,000
share equivalent units. Each unit entitles each person to receive, in cash
only, the difference between $13.875 per share and the market value of a share
of common stock on the exercise date. The right to exercise any units does not
vest until August 16, 1995. Thereafter, each individual's right to exercise any
units vests at a rate of 16,662 units on August 16, 1995, and at a rate of 2,777
units on the 16th day of each month thereafter until the 16th day of January,
1998, at which time the 2,805 unvested units vest. Such vesting shall occur
only if the person is in the full-time employ of the Company or any subsidiary
of the Company on each vesting date.
By letters dated March 24, 1995, the Company confirmed to John E. Siipola
and Horst K. Mehlfeldt that, if a change in control of the Company took place
between February 15, 1995 and August 16, 1995, the Company would pay each a lump
sum payment of $150,000 if their positions with the Company terminated as a
result of such change in control. The Company also confirmed to Steven P.
Cloward that any severance will be determined in accordance with the Company's
severance pay guidelines in effect on February 12, 1995 as it applied to his
1995 compensation (salary and bonus) program in effect as of February 12, 1995,
if his employment terminated before August 16, 1995. The Company has now
entered into letter agreements with Messrs. Siipola and Mehlfeldt that provide
that Messrs. Siipola and Mehlfeldt each will receive a severance package
consisting solely of a lump sum payment of $150,000 minus any amounts they may
realize from the exercise of rights granted to them in the SAR Agreements if
the Merger is consummated and if their employment with the Company terminates
within 285 days after the date of the Merger is effective or if during that
period their salary is reduced from the salary in effect on the date the Merger
is consummated. Messrs. Siipola and Mehlfeldt have agreed that on the effective
date of the Merger, their SAR Agreements will terminate. The Company also
entered into a letter with Mr. Cloward that provides that his severance
arrangement will continue through the effective date of the Merger provided he
agrees upon the effective date of the Merger that his SAR Agreement will
terminate. The Board of Directors of the Company has authorized the extension
to a future date that will coincide with the Effective Time, as such time is
defined in the Merger Agreement, of temporary living and travel arrangements for
John E. Siipola.
Steven P. Cloward and John B. Adams are participants in the Company's
Supplemental Executive Retirement Plan (the "Plan"). Pursuant to the Plan, upon
a change in control of the Company such as will occur as a result of the Merger,
each participant will be entitled to receive all amounts credited to the
participant's account. Messrs. Cloward and Adams have elected to take their
distributions in lump sum payments rather than in monthly installments over 5 to
10 years. The aggregate distributions to them will be $11,632.50 plus any
amount credited in 1996 for 1995.
INDEMNIFICATION BY THE PARENT AND THE COMPANY. The Merger Agreement
provides that Parent and the Company will enter into indemnification agreements
with each present director of the Company as of the Effective Time. Regardless
of whether the Merger becomes effective, the Company will indemnify and hold
harmless each present and former director and officer of the Company and its
subsidiaries, including the members of the Investment Committee, from all
expenses, judgments, fines, penalties and penalties incurred in connection with
the defense or settlement, or successful disposition, of a proceeding in which
the indemnitee was involved by reason of being a director of the Company or
serving at the request of the Company as a principal of another entity.
Indemnification is conditioned upon the indemnitee providing notice to the
Company. Expenses may be advanced with the agreement of the indemnitee to repay
the advances if it is later determined that the indemnitee was not entitled to
such indemnification. The Company is required to purchase an insurance policy
to be in effect for three years in order to provide coverage for the indemnitee
similar to that provided by for the Company's directors.
INFORMATION PERTAINING TO THE PARENT,
THE PURCHASER AND RELATED PERSONS
GENERAL
Pursuant to the Merger, the Purchaser will merge with and into the Company
and the Company will remain as the surviving corporation. The result of the
Merger will be that the Company will become a wholly-owned subsidiary of the
Parent. The Merger Agreement provides that the Board of Directors of Purchaser
will become the Board of Directors of the Company at the Effective Time. As of
the date hereof, Steven P. Cloward and John B. Adams, both of whom are officers
and directors of the Company, and Scott E. Klossner, Michael E. Lyons and Wesley
E. Stephenson are the directors of the Purchaser and of the Parent. In
addition, Messrs. Cloward and Adams and Philip J. Teigen, who is also an officer
of the Company, are the only officers of the Purchaser and of the Parent. For
information pertaining to Messrs. Cloward, Adams and Teigen see "Directors and
Executive Officers of the Company."
Upon consummation of the Merger, it is currently contemplated that the
equity ownership of the Parent will be as follows: Big O Dealers, L.P. (the
"Dealer LP"), a California limited partnership, 50%; the ESOP, 35%; and Senior
Management, 15% (excluding the Management Restricted Stock [as defined below],
the shares "issuable" pursuant to the Dealer Warrant [as defined below], the
Sub-Debt Warrant, the ESOP Contributions [as defined below], and the Dealer
Purchase Bonus [as defined below] and assuming that the Management Options are
exercised as described below).
The Dealer LP will be formed prior to the Effective Time, and its address
will be 1111 Broadway, 24th Floor, Oakland, California 94607. Big O Tire
Dealers of America ("BOTDA"), a California corporation with its principal office
at 1111 Broadway, 24th Floor, Oakland, California 94607, is the general partner
of the Partnership.
The Dealer LP (i) will contribute to the Parent an aggregate of $10,000,000
consisting of cash and shares of Common Stock (valued at $16.50 per share), (ii)
has encouraged certain of its members to extend their franchise agreements with
the Company, and (iii) has committed (on behalf of its members) to certain
minimum tire purchases the attainment of which will entitle the Dealer LP to
additional shares of stock ("Dealer Purchase Bonus"). Providing and conditional
upon the dealers attaining certain minimum tire purchases, Parent will issue to
the Dealer LP, bonus shares of the common stock of Parent ("Parent Common
Stock") in an amount equal to the number of shares issuable to the ESOP for the
years 1996, 1997, 1998, 1999, and 2000. The number of shares shall be
determined based on the ESOP contribution for such year divided by the most
recent appraisal price for the stock if the stock is not traded on an exchange
or the bid price if publicly traded ("Appraised Price"). At the Effective Time,
the Dealer LP will own 569,801 shares (50.00% assuming the Management Options
are exercised) of Parent Common Stock. In addition, the Dealer LP will be
provided warrants to purchase an additional 120,000 shares of Parent Common
Stock exercisable five (5) years after consummation of the Merger at the
Appraised Price.
Pursuant to a Confidential Private Placement Memorandum ("Memorandum"),
qualified franchised Dealers have been given the opportunity to subscribe to
invest in the Dealer LP, and thus, the opportunity to participate in the
acquisition of the Company pursuant to the terms of the Merger Agreement.
On August 10, 1995, Steven P. Cloward and Wesley E. Stephenson received a
commitment letter from Kelly to loan the Dealer LP $5,000,000 (the "Dealer
Loan"). The Dealer Loan is subject to a number of contingencies including, but
not limited to, the completion of Kelly's due diligence, contribution of at
least $1,300,000 in equity by the Dealers to the Dealer LP, the participation of
80% of the Dealers in the Dealer LP and, execution of an agreement requiring the
Dealers to cause the Company to meet certain minimum tire purchases.
It is anticipated that the Dealer LP will purchase the Common Stock it will
contribute to the Parent in a series of private transactions, as follows:
As part of its required equity contribution to Parent, and in
addition to the Dealer Loan, BOTDA has, on behalf of the Dealer LP,
made a proposal to Balboa and Mr. Pavia to purchase the approximately
309,500 shares of Common Stock owned and held by Balboa (the "Balboa
Shares") at a price of $16.00 per share. In addition, the Dealer LP
has proposed to reimburse Balboa for expenses incurred by Balboa in
putting together proposals for certain stockholder actions and
resolutions to the stockholders of the Company in 1993 and 1994 by way
of proxy solicitations and related actions, which actions included
proposals that the Company explore all alternatives to enhance the
value of the Company (the "Reimbursement"); provided that the Dealer
LP's Reimbursement obligation to Balboa shall not exceed the sum of
$619,000. Part of the purchase price for the Balboa Shares and the
Reimbursement will be paid in cash with the remainder payable by way
of a secured promissory note with interest of ___% per annum, fully
amortized over a six-year period. A copy of a draft stock purchase
agreement with respect to the Balboa shares is attached as an exhibit
to the Schedule 13E-3.
In addition to the Dealer Loan and the proposal made to Balboa,
and also as part of its required equity contribution to Parent, BOTDA
has, on behalf of the Dealer LP, made proposals to certain current
stockholders of the Company, thereby offering to purchase such
stockholders' Common Stock at the price of $16.50 per share, payable
partly in cash or equivalent with the remainder payable by way of a
secured promissory note fully amortized over a six-year period. A
copy of a draft form of stock purchase agreement is attached as an
exhibit to the Schedule 13E-3.
The participants in the ESOP will also be offered the opportunity to become
shareholders of the Parent. The Company has been advised that at or about the
same time the Company mails this Proxy Statement to the Company's stockholders,
the Parent will offer participants in the ESOP the opportunity to exchange, at
the Effective Time, the shares allocated to the participants' respective
accounts for shares of Parent Common Stock. The ESOP shares will be exchanged
on the basis of one share of Parent Common Stock for one share of Common Stock.
Unless waived by the Purchaser, one of the conditions to the Merger is that at
least 80% of the shares of Common Stock held by the ESOP be exchanged for shares
of the Parent Common Stock. If such minimum exchange level is achieved, the
ESOP will own approximately _____% of the outstanding Parent Common Stock.
The Company has amended the ESOP to provide for mandatory contributions to
the ESOP by the Company of at least 5% of the qualified earnings. These
contributions will be made in the form of cash or Parent Common Stock (the "ESOP
Contributions").
Senior Management will contribute 64,094 shares of Common Stock to the
Parent. At the Effective Time, Senior Management will own an aggregate of
100,477 shares (9.39%) of Parent Common Stock. In addition, members of Senior
Management currently hold Options to purchase 163,678 shares of Common Stock
which at the Effective Time will be converted into options to purchase the same
number of shares of Parent Common Stock which will allow the optionee to pay for
the exercise of an option by forfeiting other options (the "Management
Options"). If Senior Management were to exercise all such options immediately
after the Effective Time and pay the exercise price of such options through the
cancellation of other options, Senior Management would own approximately 14.0%
of the outstanding Parent Common Stock. This would reduce the percentage
holdings in the Parent of the Dealer LP and the ESOP to 50.0% and 35.1%,
respectively.
As part of their employment compensation, Senior Management will receive
120,000 shares of restricted Parent Common Stock (the "Management Restricted
Stock"). The Management Restricted Stock will vest over a period of five years.
As described above, it is also anticipated that the Parent will issue the
Sub-Debt Warrant to BBC. The Sub-Debt Warrant will provide BBC the right to
purchase 12% of the equity in Parent.
CERTAIN INFORMATION PERTAINING TO BOTDA
The following is certain information pertaining to the current directors
and executive officers of BOTDA:
PRESENT PRINCIPAL OCCUPATION
RESIDENCE OR AND MATERIAL OCCUPATIONS
NAME BUSINESS ADDRESS DURING LAST FIVE YEARS
Guide Bertoli 420 Mowry Avenue
Fremont, CA 94536 Owner of three franchised
Big O Tire retail stores in
Fairfield, Fremont and Santa
Cruz, California since 1991
(two stores) and 1994; member
of Company's Dealer Planing
Board since 1994; Director of
BOTDA since 1995.
Bryan K. Edwards 377 East Cypress
Redding, CA 96002 Owner of a franchised Big O
Tire retail store in Redding,
California since 1987; member
of the Company's Dealer
Planning Board from 1989-1991;
Chief Financial
Officer/Treasurer and Director
of BOTDA since 1995.
Scott E. Klossner 3120 South Highland Drive
Salt Lake City, UT 84106 President and 100% owner of
K&B Corp., which has owned a
franchised Big O Tire retail
store in Utah since 1990;
Director of BOTDA since 1995;
member of the Company's Dealer
Planning Board in 1993, 1994
and 1995.
O. Kenneth Little 1625 Countryshire Avenue
Lake Havasu City, AZ 86403 Owner of franchised Big O Tire
retail store in Lake Havasu
City, Arizona since 1993; from
1987 to 1992, president and
owner of CLLBP, Inc., which
owned two Big O Tire retail
stores in California; member
of Company's Dealer Planning
Board since 1994.
Michael E. Lyons 1205 S. Main
Longmont, CO 80234 Sole owner of Myklyn Tires,
Inc., which has owned a
franchised Big O Retail store
in Longmont, Colorado since
1982; since 1995, 14.286%
owner of Brighton Automotive
Services, L.L.C., which owns a
franchised Big O Retail store
in Brighton, Colorado; since
1995, 100% owner of Lyons
Enterprises which owned a Big
O Retail Store in Louisville,
Colorado from 1992 to 1993;
member of Company's Dealer
Planning Board since 1985;
Vice President and director of
BOTDA since August 1995;
Director of Silverheels
Southwest Grill since 1995.
Louis Martinez 5200 Central SE
Albuquerque, NM 87108 Owner and manager of three
franchised Big O Retail stores
in New Mexico (since 1972,
1978 and 1991, respectively);
Director of BOTDA since 1995;
member of the Company's Dealer
Planning Board from 1972-1975,
1978-1981, and from 1993-
present.
Kenneth A. Roetto 216 E. Fairview Avenue
Meridian, ID 83680 Since 1986, owner and
president of Ken's Tire, Inc.,
which owns a franchised Big O
Tire retail in Meridian,
Idaho; Secretary and Director
of BOTDA since 1995; member of
the Company's Dealer Planning
Board from 1986-1995.
P. Thomas Staker 215 Clifty Drive
Madison, IN 47250 Since 1993, co-owner (50%) and
since 1990, manager, of T.M.S,
Inc., which owns a franchised
Big O Tire retail store in
Madison, Indiana; member of
Company's Dealer Planning
Board since 1994; Assistant
Vice President and Director or
BOTDA since 1995.
Wesley E.
Stephenson 4520 N. Rancho Road
Las Vegas, NV 89130 Since 1980, vice president of
operations and since 1978, 50%
owner of Spring Valley Tires,
Inc., which owns four
franchised Big O Tires retail
stores in Nevada; since 1991,
35% owner and vice president
of operations of Rancho Sierra
Tires, L.L.C., which owns one
franchised Big O Tires retail
store in Nevada; since 1994,
50% owner and vice president
of operations of Pahrump
Valley Tires, Inc., which owns
one franchised Big O Tires
retail store in Nevada;
President and Director of
BOTDA since 1995; member of
the Company's Dealer Planning
Board since 1992.
All of the directors and executive officers of the Parent, the Purchaser
and BOTDA are citizens of the United States.
SECURITY OWNERSHIP OF MANAGEMENT OF BOTDA IN COMPANY
The following table shows, as of October 30, 1995, the shares of the
Company's outstanding stock owned by each director or executive director of
BOTDA, and the shares of the Company's common stock owned by all the directors
and executive officers of BOTDA as a group.
AMOUNT AND NATURE OF
NAME OF BENEFICIAL OWNER BENEFICIAL OWNERSHIP(1) PERCENT OF CLASS
Guido A. Bertoli 3,000 *
Bryan K. Edwards 102 *
Scott E. Klossner 82 *
O. Kenneth Little 1,000 *
Michael E. Lyons 308 *
Louis Martinez 761 *
Kenneth A. Roetto 230 *
P. Thomas Staker 87 *
Wesley E. Stephenson 50(2) *
_________________
* Percent of shares of Common Stock beneficially owned by this person does
not exceed 1% of the outstanding Common Stock.
(1) Unless otherwise indicated, the shares are held directly in the names of
the beneficial owners and each person has sole voting and sole investment
power with respect to such shares.
(2) Shares are held in the name of Rancho Sierra Tires, L.L.C., of which this
person is a 20% equity owner.
CERTAIN PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS WITH COMPANY.
Since January 1, 1993, no transactions involving more than 1% of the
Company's consolidated revenues for the Company's fiscal years ended December
31, 1993 or 1994, or for the nine months ended September 30, 1995, have occurred
or been entered into between the Company and any director or executive officer
of BOTDA, any director or executive officer of the Parent or any director or
executive officer of the Purchaser, except as follows:
1. Each director and executive officer of BOTDA is expected to become a
limited partner of Dealer LP. Dealer LP will acquire an interest in Parent, a
party to the Merger Agreement. The interest in Dealer LP to be owned by each
such person cannot be determined at this time.
2. Pursuant to the terms of the franchise agreements between the Company
and those entities of which Mr. Stephenson has an ownership interest, the
following amounts were paid to the Company in the form of franchise fees,
royalties and product purchases:
YEAR AMOUNT
1993 $3,335,048
1994 $3,680,324
1995 (1/1-9/30) $3,667,215
3. Pursuant to the terms of the franchise agreement between the Company
and Mr. Martinez, the following amounts were paid to the Company in the form of
franchise fees, royalties and product purchases:
YEAR AMOUNT
1993 $ 951,886
1994 $1,107,612
1995 (1/1-9/30) $ 887,718
4. In June 1995, the Company loaned $75,000 to Brighton Automotive
Services, L.L.C., a limited liability company, that owns a franchised Big O
Retail Store in Brighton, Colorado, and in which Michael E. Lyons is a 14.286%
owner. The loan bears interest at prime plus 2% and is payable in monthly
installments of principal and interest through June 20, 1998.
5. In August 1995, the Company loaned $59,160 to K & B Corp., of which
Scott E. Klossner is the 100% owner. The loan bears interest at prime plus 2%
and is payable in equal monthly installments of interest only until April 1,
1996, at which time monthly installments of principal and interest are payable
through August 1, 1998.
RECENT TRANSACTIONS BY THE COMPANY IN THE COMMON STOCK
In May 1993, the Company consummated agreements with Continental General
Tire, Inc. ("General") resulting in the Company's repurchase of 400,000 shares
of the Company's Common Stock owned by General. The agreements also resulted in
the repurchase and cancellation of warrants held by General to purchase up to
1,000,000 shares of the Company's Common Stock. The repurchase price for the
Common Stock and warrants was $6,100,000. General previously held 11.27% of the
Company's outstanding Common Stock and no longer has any ownership interest in
the Company. The agreement between General and the Company also resulted in the
repayment of revolving financing supplied by General in the amount of
$1,764,000, the termination of the existing supply agreement between the Company
and General and the termination of other related agreements. Concurrent with
the termination of the supply and related agreements, the Company and General
entered into a marketing agreement whereby General agreed to continue to supply
Big O branded tires to the Company. In January 1994, the Company and General
agreed to terminate the marketing agreement.
In June 1993, the Company sold 93,333 shares of the Company's Common Stock
to an unaffiliated person at a price of $12.75 per share. After deducting the
concession paid to the broker-dealer that placed the shares and after deducting
the expenses of the offering, the Company realized approximately $1,100,000 from
the sale of the shares. The Company used approximately $788,000 of such
proceeds to satisfy obligations related to the Company's 1988 acquisition of Big
O Tires of Louisville, Inc. The balance of the net proceeds of approximately
$312,000 was used by the Company for general corporate purposes.
DOCUMENTS INCORPORATED BY REFERENCE
The following documents previously filed by the Company with the Securities
and Exchange Commission are incorporated herein by reference: (i) the Company's
Annual Report on Form 10-K for the year ended December 31, 1994 and the
amendment thereto; (ii) the Company's Quarterly Reports on Form 10-Q for the
quarters ended March 31, 1995, June 30, 1995 and September 30, 1995; and (iii)
the Company's Current Reports on Form 8-K and Form 8-K/A dated April 6, 1995,
April 13, 1995, June 5, 1995, June 9, 1995, July 25, 1995, July 27, 1995, August
17, 1995, September 5, 1995, October 4, 1995, October 18, 1995, and November 17,
1995. All documents filed by the Company pursuant to Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 after the date of this Proxy Statement and
prior to the Special Meeting (or any adjournments or postponements thereof)
shall be deemed to be incorporated into this Proxy Statement by reference and to
be a part hereof from the date of filing of such documents.
This proxy statement is accompanied by a copy of the Company's Annual
Report on Form 10-K, as amended, for the fiscal year ended December 31, 1994.
The Company will provide without charge to each person to whom a copy of this
Proxy Statement has been delivered, on the written or oral request of such
person, by first class mail or equally prompt means, within one business day of
the receipt of such request, copies of the Company's Quarterly Report on Form
10-Q for the quarter ended September 30, 1995, that has been incorporated herein
by reference and copies of any document filed as an exhibit to the Schedule
13E-3 and not included in this Proxy Statement. Requests for such copies should
be directed to Beth Hayne, Director, Investor Relations, at the Company at its
principal offices, 11755 East Peakview Avenue, Englewood, Colorado 80011, or by
telephone at (303) 790-2800. Such requests should be made by _________________
to ensure delivery prior to the Special Meeting.
STOCKHOLDER PROPOSALS
It is currently anticipated that the Company's next annual meeting of
stockholders will occur after the Effective Time and accordingly the Company's
existing stockholders will not be entitled to participate in such meeting unless
the Merger is not consummated. If the Merger is not consummated, proposals of
stockholders intended to be presented at the next annual meeting of the
Company's stockholders must be received by the Company within a reasonable time
prior to the mailing of the proxy statement for such meeting but no later than
___________________, 1995.
By Order of the Board of Directors
Susan D. Hendee, Assistant Secretary
Englewood, Colorado
__________, 1995
PRELIMINARY COPY
PROXY
BIG O TIRES, INC.
PROXY SOLICITED BY THE BOARD OF DIRECTORS
FOR THE SPECIAL MEETING OF STOCKHOLDERS
TO BE HELD __________, 1996
The undersigned hereby constitutes and appoints John E. Siipola, Horst K.
Mehlfeldt, Steven P. Cloward, and each of them, the true and lawful attorneys
and proxies of the undersigned with full power of substitution and appointment,
for and in the name, place and stead of the undersigned, to act for and to vote
all of the undersigned's shares of common stock of Big O Tires, Inc. ("Company")
at the Special Meeting of Stockholders to be held at _________________
_________________________ Colorado __________ on _____________, 1996, at ______:
__.m., Mountain Standard Time, and at all adjournments thereof for the following
purposes:
1. Approval of the Plan of Merger dated July 24, 1995, as amended, by and
among the Company, BOTI Holdings, Inc. and BOTI Acquisition Corp. and the Merger
of BOTI Acquisition Corp. into the Company, all as described in the accompanying
Proxy Statement.
[ ] FOR [ ] AGAINST [ ] ABSTAIN FROM VOTING
2. In their discretion, the Proxies are authorized to vote upon such
other business as lawfully may come before the meeting.
The undersigned hereby revokes any proxies as to said shares heretofore
given by the undersigned and ratifies and confirms all that said attorneys and
proxies lawfully may do by virtue hereof.
THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS SPECIFIED. IF NO
SPECIFICATION IS MADE, THEN THE SHARES REPRESENTED BY THIS PROXY WILL BE VOTED
AT THE MEETING FOR APPROVAL OF THE MERGER.
It is understood that this proxy confers discretionary authority in respect
to matters not known or determined at the time of the mailing of the Notice of
Special Meeting of Stockholders to the undersigned. The proxies and attorneys
intend to vote the shares represented by this proxy on such matters, if any, as
determined by the Board of Directors.
The undersigned hereby acknowledges receipt of the Notice of Special
Meeting of Shareholders and the Proxy Statement furnished therewith.
Dated and Signed:
__________________________________________, 1996
___________________________________________
___________________________________________
Signature(s) should agree with the name(s) stenciled
hereon. Executors, administrators, trustee, guardians
and attorneys should so indicate when signing.
Attorneys should submit powers of attorney
UNITED STATES
Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-K/A
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE
REQUIRED]
For the transition period from ________ to _________.
Commission File Number: 1-8833
BIG O TIRES, INC.
(Exact name of registrant as specified in its charter)
Nevada 87-0392481
- -------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
11755 East Peakview Avenue
Englewood, Colorado 80111
(Address of Principal Executive Offices and Zip Code)
Registrant's Telephone Number, Including Area Code: (303) 790-2800
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
$0.10 Par Value Common Stock
----------------------------
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes __X__ No _____
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
The aggregate market value of the registrant's voting stock held as of March 24,
1995, by nonaffiliates of the registrant was $35,473,244.50.
As of March 24, 1995, the registrant had 3,311,766 shares of its $0.10 par value
common stock outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
The definitive Proxy Statement for the 1995 Annual Meeting of Shareholders is
incorporated by reference in lieu of the information required by Part III
hereof.
Total Pages 23.
Exhibit Index Page 13.
<PAGE>
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K
(a) (1) LIST OF FINANCIAL STATEMENTS
The following is a list of financial statements which, along with the auditors'
report, accompany this Form 10-K:
- Independent Auditors' Report - Deloitte & Touche LLP
- Consolidated Balance Sheets
December 31, 1994 and 1993
- Consolidated Statements of Income
Years Ended December 31, 1994, 1993, and 1992
- Consolidated Statements of Shareholders' Equity
Years ended December 31, 1994, 1993, and 1992
- Consolidated Statements of Cash Flows
Years ended December 31, 1994, 1993, and 1992
- Notes to Consolidated Financial Statements
(a) (2) LIST OF SCHEDULES REQUIRED BY ITEM 8 AND ITEM 14 (d)
None.
(a) (3) LIST OF EXHIBITS REQUIRED BY ITEM 601 OF REGULATION S-K
EXHIBIT
NUMBER
(3.1) Certificate of Amendment to Restated Articles of Incorporation of Big
O Tires, Inc. dated June 10, 1992 and Restated Articles of Incorporation of Big
O Tires, Inc. dated August 17, 1987 (incorporated by reference to Exhibit 3 to
Quarterly Report on Form 10-Q for quarter ended June 30, 1992).
(3.2) Amended and Restated Bylaws of Big O Tires, Inc., a Nevada
corporation, as amended, August 26, 1994 (incorporated by reference to Exhibit 2
to Current Report on Form 8-K dated August 26, 1994).
(4.1) Rights Agreement dated as of August 26, 1994, between Big O Tires,
Inc. and Interwest Co., Inc., as Rights Agent (incorporated by reference to
Exhibit 1 to Current Report on Form 8-K dated August 26, 1994).
(10.1) 1994 Restatement of Employee Stock Ownership Plan and Trust Agreement of
Big O Tires, Inc. (incorporated by reference to Exhibit 10.3 to Big O Tires,
Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994).
(10.2) Big O Tires, Inc. Director and Employee Stock Option Plan (incorporated
by reference to Exhibit 10.11 to Big O Tires, Inc.'s Annual Report on Form 10-K
for the fiscal year ended December 31, 1988).
(10.3) First Amendment to the Big O Tires, Inc. Director and Employee Stock
Option Plan (incorporated by reference to Exhibit 10.10 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1989).
(10.4) Amendment No. 2 to the Big O Tires, Inc. Director and Employee Stock
Option Plan (incorporated by reference to Exhibit 10.16 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1992).
(10.5) Ultimate Net Loss Agreement between Big O Tires, Inc. and FBS Business
Finance Corporation dated January 13, 1989 (incorporated by reference to Exhibit
10.34 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year
ended December 31, 1988).
(10.6) Purchase Agreement effective June 30, 1987, and related documents
including Promissory Notes, Modification Agreements, Security Agreements,
Guaranty Agreement, and Subleases in connection with a purchase by C.S.B.
Partnership and three individuals including Ronald D. Asher, of three Big O
Franchise Retail Tire Stores in California from Security/Cal, Inc., a
wholly-owned subsidiary of the Company, and H.R.I., Inc., a wholly-owned
subsidiary of Security/Cal, Inc. (incorporated by reference to Exhibit 10.63 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1987).
(10.7) Purchase Agreement effective November 1, 1987, and related documents
including Promissory Notes, Security Agreements, Guaranty Agreements, Subleases,
and Franchise Agreements in connection with a purchase by C.S.B. Partnership and
its three general partners, including Ronald D. Asher, of two Big O Franchise
Retail Tire Stores in California from Security/Cal, Inc. and H.R.I., Inc.
(Seller) (incorporated by reference to Exhibit 10.45 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1988).
(10.8) Purchase Agreements effective July 5, 1988, October 1, 1988, and
November 14, 1988, and related documents including Promissory Notes, Security
Agreements, Guaranty Agreements, and Subleases in connection with a purchase by
C.S.B. Partnership and three individuals including Ronald D. Asher of three Big
O Franchise Retail Tire Stores in California from Big O Tires, Inc.,
Security/Cal, Inc., a wholly-owned subsidiary of the Company, and H.R.I., Inc.,
a wholly-owned subsidiary of Security/Cal, Inc. (incorporated by reference to
Exhibit 10.46 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1988).
(10.9) Agreement and Release dated October 31, 1989, and related documents
including Promissory Note, related Subleases, Assignment of Lease Rights, and
Performance Guarantee in connection with the purchase by C.S.B. Partnership and
its general partners, including Ronald D. Asher, of two (2) Big O franchise
retail tire stores in California, owned by GEM Tire, Inc. from the Company
(incorporated by reference to Exhibit 10.57 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1989).
(10.10) Ultimate Net Loss Agreement, dated as of December 1, 1990, by and
between Big O Tires, Inc. and Northcross Financial Services, Inc., ICON Capital
Corp., in its individual capacity and on behalf of ICON Cash Flow Partners,
L.P., Series A, ICON Cash Flow Partners, L.P., Series B and any future
partnerships on which it may be the general partner and/or manager (incorporated
by reference to Exhibit 10.70 to Big O Tires, Inc.'s Annual Report on Form 10-K
for the fiscal year ended December 31, 1990).
(10.11) Loan and Security Agreement dated October 15, 1991, with its former
lender together with exhibits and appendices (incorporated by reference to
Exhibit 10.57 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1991).
(10.12) Assignment for Security (Trademarks and Trademark Licenses), dated
October 15, 1991, providing collateral assignment of Big O Tires, Inc.'s and its
subsidiaries' trademark and trademark licenses to its former lender
(incorporated by reference to Exhibit 10.58 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1991).
(10.13) Stock Pledge Agreement dated October 15, 1991, whereunder Big O Tires,
Inc. pledged stock holdings of its subsidiary companies to its former lender
(incorporated by reference to Exhibit 10.59 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1991).
(10.14) Continuing Guaranty Agreement dated October, 15, 1991, providing the
guarantee by certain of Big O Tires, Inc.'s subsidiary companies for the
obligations of Big O Tires, Inc. under the Loan and Security Agreement with its
former lender (incorporated by reference to Exhibit 10.60 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1991).
(10.15) First Amendment to Loan and Security Agreement, dated as of November
18, 1991, with its former lender (incorporated by reference to Exhibit 10.62 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1991).
(10.16) Deed of Trust, Assignment of Rents, Security Agreement and Fixture
Filing dated as of November 19, 1991, for the benefit of its former lender which
now enjoys a first lien position on Big O Tires, Inc.'s Vacaville, California
Regional Sales and Service Center (incorporated by reference to Exhibit 10.65 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1991).
(10.17) Secured Promissory Note dated April 3, 1992, in the original principal
amount of $3,000,000, payable to the order of its former lender which evidences
Big O Tires, Inc.'s $3,000,000 term loan facility (incorporated by reference to
Exhibit 10.67 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1991).
(10.18) 1994 Incentive Bonus Plans (incorporated by reference to Exhibit 10.43
to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1993).
(10.19) Agreement of Joint Venture of Big O/C.S.B. Joint Venture dated as of
June 1, 1992, by and between Big O Retail Enterprises, Inc., a wholly-owned
subsidiary of Big O Tires, Inc., and C.S.B. Partnership, a California general
partnership (incorporated by reference to Exhibit 10.70 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1991).
(10.20) Amendment No. 1 to Agreement of Joint Venture of Big O/C.S.B. Joint
Venture dated as of May 15, 1993 (incorporated by reference to Exhibit 10.27 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1993).
(10.21) Purchase Agreement for Private Brand Name Tires between Big O Tires,
Inc. and The Kelly-Springfield Tire Co., dated August 16, 1992 (incorporated by
reference to Exhibit 10.71 to Big O Tires, Inc.'s Annual Report on Form 10-K for
the fiscal year ended December 31, 1991).
(10.22) Big O Tires, Inc. Long Term Incentive Plan (incorporated by reference
to Exhibit 55 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1992).
(10.23) Amendment No. 1 to Big O Tires, Inc. Long Term Incentive Plan
(incorporated by reference to Exhibit 56 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992).
(10.24) Amendment No. 2 to Big O Tires, Inc. Long Term Incentive Plan
(incorporated by reference to Exhibit 57 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992).
(10.25) Agreement of Joint Venture of Big O/S.A.N.D.S. Joint Venture
(incorporated by reference to Exhibit 58 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992).
(10.26) Commitment Letters dated July 22, 1992, from AT&T Capital Corporation
(incorporated by reference to Exhibit 64 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992).
(10.27) Agreement dated as of November 15, 1992, among Peerless Trading
Company, Limited, Delaware Liquidators, Inc. dba Trade Center Imports, and Big O
Tires, Inc.; Purchase Money Non-Negotiable Promissory Note dated as of November
15, 1992, from Peerless Trading Company, Limited to Big O Tires, Inc.; and
amendment dated January 19, 1993 to the Agreement dated November 15, 1992
(incorporated by reference to Exhibit 66 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992).
(10.28) Marketing Agreement for Private Brand Tires between Big O Tires, Inc.
and General Tire, Inc., dated May 14, 1993 (incorporated by reference to Exhibit
10.1 to Big O Tires, Inc.'s Current Report on Form 8-K dated April 30, 1993).
(10.29) Closing Agreement between General Tire, Inc. and Big O Tires, Inc.,
dated May 14, 1993 (incorporated by reference to Exhibit 10.2 to Big O Tires,
Inc.'s Current Report on Form 8-K dated April 30, 1993).
(10.30) Second Amendment to Loan and Security Agreement by and among its former
lender and Big O Tires, Inc., Big O Retail Enterprises, Inc. and Big O Tire of
Idaho, Inc., dated May 14, 1993 (incorporated by reference to Exhibit 10.3 to
Big O Tires, Inc.'s Current Report on Form 8-K dated April 30, 1993).
(10.31) Inventory Financing Agreement between The Kelly-Springfield Tire
Company and Big O Tires, Inc. and/or Big O Tire of Idaho, Inc. and/or Big O
Retail Enterprises, Inc., dated May 14, 1993 (incorporated by reference to
Exhibit 10.4 to Big O Tires, Inc.'s Current Report on Form 8-K dated April 30,
1993).
(10.32) Demand Note in the original principal amount of $6,000,338.67 with The
Kelly-Springfield Tire Co. as Holder and Big O Tires, Inc., Big O Retail
Enterprises, Inc. and Big O Tire of Idaho, Inc., as Maker (incorporated by
reference to Exhibit 10.50 to Big O Tires, Inc.'s Annual Report on Form 10-K for
the fiscal year ended December 31, 1993).
(10.33) Purchase Agreement by and among Tire Brands, Inc. and Big O Tires,
Inc., dated as of April 30, 1993 (incorporated by reference to Exhibit 10.5 to
Big O Tires, Inc.'s Current Report on Form 8-K dated April 30, 1993).
(10.34) Consolidation and Modification Agreement among Big O Tires (successor
in interest to H.R.I., Inc. and Security/Cal, Inc.) and Big O Retail
Enterprises, Inc. and C.S.B. Partnership (incorporated by reference to Exhibit
10.51 to Big O Tires, Inc.'s Registration Statement No. 33-65852).
(10.35) Modification of Consolidation and Modification Agreement by and between
C.S.B. Partnership and Big O Tires, Inc. (incorporated by reference to Big O
Tires, Inc.'s Form 10-K for the year ended December 31, 1993).
(10.36) Registration Rights Agreement dated June 28, 1993, between the Selling
Shareholder and Big O Tires, Inc. (incorporated by reference to Exhibit 10.52 to
Big O Tires, Inc.'s Registration Statement No. 33-65852).
(10.37) Loan Agreement and Promissory Note in the original principal amount of
$155,000.00 with C.S.B. Partnership as Maker (incorporated by reference to
Exhibit 10.44 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993).
(10.38) Loan Agreement and Promissory Note in the original principal amount of
$70,000.00 with Big O/C.S.B Joint Venture as Maker (incorporated by reference to
Exhibit 10.45 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993).
(10.39) Loan Agreement and Promissory Note in the original principal amount of
$75,000.00 with Big O/S.A.N.D.S. Joint Venture as Maker (incorporated by
reference to Exhibit 10.46 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993).
(10.40) Commercial Note and Loan Agreement, Commercial Mortgage and
Environmental Certificate between Big O Development, Inc. and National City
Bank, Kentucky, and Guaranty Agreement of Big O Tires, Inc. guaranteeing the
obligations of Big O Development, Inc. to National City Bank, Kentucky in
connection with the borrowing of $1,500,000 for construction of the Company's
Regional Sales and Service Center in New Albany, Indiana (incorporated by
reference to Exhibit 10.47 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993).
(10.41) Construction Agreement between Big O Development, Inc. and Koetter
Construction, Inc. to construct the Regional Sales and Service Center in Floyd
County, Indiana (incorporated by reference to Exhibit 10.48 to Big O Tires,
Inc.'s Form 10-K for the fiscal year ended December 31, 1993).
(10.42) Purchase and Sale Agreement and Joint Escrow Instructions by and
between Western Realco and Big O Tires, Inc. for the purchase of the Company's
Regional Sales and Service Center in Clark County, Nevada (incorporated by
reference to Exhibit 10.49 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993).
(10.43) Lease between Big O Tires, Inc. and Simpson Dura-Vent Company, Inc.,
dated January 24, 1994 for property located at 877 Cotting Court, Vacaville,
California and related election of option to accelerate occupation (incorporated
by reference to Exhibit 10.51 to Big O Tires, Inc.'s Form 10-K for the fiscal
year ended December 31, 1993).
(10.44) Letter dated January 26, 1994 from General Tire, Inc. to the Company
terminating the Marketing Agreement for Private Brand Name Tires between Big O
Tires, Inc. and General Tire, Inc. dated May 14, 1993 (incorporated by reference
to Exhibit 10.52 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993).
(10.45) Purchase Agreement by and between Caps Tire Limited Liability Company
and Intermountain Big O Realty for the Big O Tires Retail Store located at 8151
East Arapahoe Road, Englewood, Colorado (incorporated by reference to Exhibit
10.53 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1993).
(10.46) Third and Fourth Amendments to Loan and Security Agreement by and
between Big O Tires, Inc. and its primary lender (incorporated by reference to
Exhibit 10.54 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993).
(10.47) Limited Partnership Agreement by and between Donald J. Horton, General
Partner, Thomas L. Staker, General Partner, and Big O Tires, Inc., Limited
Partner, dated as of December 31, 1993 (incorporated by reference to Exhibit
10.56 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1993).
(10.48) Loan Agreement and Guaranty, Promissory Note and Security Agreement
with Big O Tires, Inc. Employee Stock Ownership Plan ("ESOP") as Borrower, Big
O Tires, Inc., as Guarantor, and Key Bank of Wyoming, as Lender, in connection
with the refinancing of the ESOP debt in the amount of $960,000 (incorporated by
reference to Exhibit 10.57 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993).
(10.49) Amendment to Partnership Agreement dated August 25, 1994, by and
between Big O Development, Inc., a Colorado corporation, a wholly-owned
subsidiary of Big O Tires, Inc. and Mill Creek Associates, Ltd., a Colorado
limited partnership (incorporated by reference to Exhibit 10.2 to Big O Tires,
Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994).
(10.50) Agreement dated July 1, 1994, by and between General Tire, Inc., an
Ohio corporation and Big O Tires, Inc. (incorporated by reference to Exhibit
10.4 to Big O Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30,
1994).
(10.51) Consulting Agreement by and between Big O Tires, Inc., and Horst K.
Mehlfeldt (incorporated by reference to Exhibit 10.5 to Big O Tires, Inc.'s
Quarterly Report on Form 10-Q dated September 30, 1994).
(10.52) Letter Agreement dated January 10, 1995, amending the Consulting
Agreement by and between Big O Tires, Inc. and Horst K. Mehlfeldt (incorporated
by reference to Exhibit 10.3 to Big O Tires, Inc.'s Current Report on Form 8-K
dated January 10, 1995).
(10.53) Letter Agreement dated July 12, 1994, by and between Big O Tires, Inc.
and PaineWebber Incorporated (incorporated by reference to Exhibit 10.6 to Big O
Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30, 1994).
(10.54) Letter Agreement dated March 23, 1994, by and between Big O Tires,
Inc. and The CIT Group/Equipment Financing, Inc., a New York corporation
(incorporated by reference to Exhibit 10.7 to Big O Tires, Inc.'s Quarterly
Report on Form 10-Q dated September 30, 1994).
(10.55) Ultimate Net Loss Agreement dated October 21, 1994, by and between Big
O Tires, Inc. and The CIT Group/Equipment Financing, Inc., a New York
corporation (incorporated by reference to Exhibit 10.8 to Big O Tires, Inc.'s
Quarterly Report on Form 10-Q dated September 30, 1994).
(10.56) Fifth Amendment to Loan and Security Agreement by and between Big O
Tires, Inc. and its former lender dated April 29, 1994 (incorporated by
reference to Exhibit 10.1 to Big O Tires, Inc.'s Quarterly Report on Form 10-Q
dated September 30, 1994).
(10.57) Agreement by the Investment Committee of the Board of Directors and the
Management/Dealer participants dated December 22, 1994 (incorporated by
reference to Exhibit 10.1 to Big O Tires, Inc.'s Current Report on Form 8-K
dated December 6, 1994).
(10.58) Letter dated December 13, 1994, to the Investment Committee of Big O
Tires, Inc. and the Management participants and Dealer representatives
(incorporated by reference to Exhibit 10.2 to Big O Tires, Inc.'s Current Report
on Form 8-K dated December 6, 1994).
(10.59) Letter dated February 7, 1995, from the Dealer-Management Group to the
Company's Board Chairman (incorporated by reference to Exhibit 10.1 to Big O
Tires, Inc.'s Current Report on Form 8-K dated January 10, 1995).
(10.60) Agreement between the Company and the Management/Dealer participants
dated January 20, 1995 (incorporated by reference to Exhibit 10.2 to Big O
Tires, Inc.'s Current Report on Form 8-K dated January 10, 1995).
(10.61) Form of Franchise Agreement currently in use (incorporated by reference
to Exhibit 10.61 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.62) Multi-Tenant Lease NNN dated December 1, 1994 between Botac VI Leasing
L.L.C., a Utah Limited Liability Company and Big O Development, Inc
(incorporated by reference to Exhibit 10.62 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.63) Assignment and Assumption Agreement dated December 2, 1994 by Big O
Development, Inc., Big O Tires, Inc. and Botac VI Leasing, L.L.C. and Allstate
Life Insurance Company (incorporated by reference to Exhibit 10.63 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed).
(10.64) Guarantee Agreement dated December 2, 1994 by Big O Tires, Inc., Big O
Development, Inc. and Allstate Life Insurance Company (incorporated by reference
to Exhibit 10.64 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.65) Closing Agreement dated December 2, 1994 by Big O Development, Inc.,
Big O Tires, Inc., Botac VI Leasing, L.L.C., and Allstate Life Insurance Company
(incorporated by reference to Exhibit 10.65 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.66) Commercial contract to Buy and Sell Real Estate dated March 17, 1994
between Bailey's Moving and Storage and Big O Tires, Inc. (incorporated by
reference to Exhibit 10.66 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed).
(10.67) Confidentiality Agreement dated September, 1994 between Big O Tires,
Inc. and Kenneth W. Pavia, Sr. (incorporated by reference to Exhibit 10.67 to
Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed).
(10.68) Amendment No. 1 to the Big O Tires, Inc. Employee Stock Ownership Plan
and Trust Agreement dated September 12, 1994 (incorporated by reference to
Exhibit 10.68 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.69) Development Management Agreement dated September, 1994 between Ross
Development Management Group, Inc. and Big O Development, Inc. and Big O Tires,
Inc. (incorporated by reference to Exhibit 10.69 to Big O Tires, Inc.'s Form
10-K for the fiscal year ended December 31, 1994 as originally filed).
(10.70) Letter Agreement dated February 20, 1995 terminating the Consulting
Agreement between Big O Tires, Inc. and Horst K. Mehlfeldt (incorporated by
reference to Exhibit 10.70 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed).
(10.71) 1995 Incentive Bonus Plans (incorporated by reference to Exhibit 10.71
to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed).
(10.72) Commitment Letter dated February 16, 1994 between Big O Tires, Inc. and
AT&T Commercial Finance Corporation for real estate financing (incorporated by
reference to Exhibit 10.72 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed).
(10.73) Commitment Letter dated February 16, 1994 between Big O Tires, Inc. and
AT&T Commercial Finance Corporation for equipment financing (incorporated by
reference to Exhibit 10.73 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed).
(10.74) Extension letter dated December 9, 1994 between Big O Tires, Inc. and
AT&T Commercial Finance Corporation to extend existing lines of credit through
December 31, 1995 (incorporated by reference to Exhibit 10.74 to Big O Tires,
Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as originally
filed).
(10.75) Resignation letter dated February 27, 1995 from Robert L. Puckett
(incorporated by reference to Exhibit 10.75 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.76) Resignation letter dated February 24, 1995 from David W. Dwyer
(incorporated by reference to Exhibit 10.76 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.77) Revolving Credit Agreement dated January 23, 1995 between Big O Tires,
Inc. and The First National Bank of Chicago (incorporated by reference to
Exhibit 10.77 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.78) Consent, Acknowledgement and Access Agreement dated January 23, 1995
between The Bank of Cherry Creek, N.A., Kenneth B. Buckius and The First
National Bank of Chicago (incorporated by reference to Exhibit 10.78 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed).
(10.79) Note Purchase Agreement dated April 27, 1994 between Big O Tires, Inc.
and USG Annuity & Life Company and Republic Western Insurance Company
(incorporated by reference to Exhibit 10.79 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.80) Franchise Agreement dated October 7, 1994 between Big O Tires, Inc. and
OK Tires, Inc. for the Retail Store located at 2830 West 3500 South, West Valley
City, Utah 84119 (incorporated by reference to Exhibit 10.80 to Big O Tires,
Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as originally
filed).
(10.81) Franchise Agreement dated November 26, 1993 between Big O Tires, Inc.
and CAPS Tire Limited Liability Company for the Retail Store located at 8151
East Arapahoe Road, Englewood, Colorado 80112 (incorporated by reference to
Exhibit 10.81 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.82) Form of Confidentiality Agreement signed by dealers dated October 19,
1994 (incorporated by reference to Exhibit 10.82 to Big O Tires, Inc.'s Form
10-K for the fiscal year ended December 31, 1994 as originally filed).
(10.83) Ultimate Net Loss Agreement dated November 30, 1994, by and between Big
O Tires, Inc. and The CIT Group/Equipment Financing, Inc., a New York
corporation (incorporated by reference to Exhibit 10.83 to Big O Tires, Inc.'s
Form 10-K for the fiscal year ended December 31, 1994 as originally filed).
(10.84) Inventory Financing Agreement together with a Demand Note dated
September 30, 1994, by and between The Kelly-Springfield Tire Company and Big O
Tires, Inc., Big O Retail Enterprises, Inc. and Big O Tire of Idaho, Inc.
(incorporated by reference to Exhibit 10.84 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.85) Supplemental Executive Retirement Plan dated December 7, 1994, by Big O
Tires, Inc., effective January 1, 1994 (incorporated by reference to Exhibit
10.85 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1994 as originally filed).
(10.86) Forms of Stock Appreciation Rights Agreement dated February 15, 1995,
between Big O Tires, Inc. and the Members of the Chief Executive Office
(incorporated by reference to Exhibit 10.86 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed).
(10.87) Letter Agreement dated March 24, 1995, regarding severance package,
between Big O Tires, Inc., and John E. Siipola (incorporated by reference to
Exhibit 10.87 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(10.88) Letter Agreement dated March 24, 1995, regarding severance package,
between Big O Tires, Inc., and Horst K. Mehlfeldt (incorporated by reference to
Exhibit 10.88 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(21.1) Big O Tires, Inc. Subsidiaries (incorporated by reference to Exhibit
21.1 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1994 as originally filed).
(23.1) Consent of Deloitte & Touche.
(24.1) Powers of Attorney executed by each of the Directors of Big O Tires,
Inc. (incorporated by reference to Exhibit 25.1 to Big O Tires, Inc.'s Form 10-K
for the fiscal
year ended December 31, 1994 as originally filed).
(27.1) Big O Tires, Inc.'s Financial Data Schedule (incorporated by reference
to Exhibit 27.1 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed).
(99.1) October 31, 1994 press release issued by AKH Company, Inc., a California
based retail tire chain, doing business as "Discount Tire Centers" and "Evans
Tire and Service Centers" (incorporated by reference to Exhibit 99.1 to Big O
Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30, 1994).
(99.2) November 1, 1994 press release issued by Big O Tires, Inc. (incorporated
by reference to Exhibit 99.2 to Big O Tires, Inc.'s Quarterly Report on Form
10-Q dated September 30, 1994).
__________
* All executive compensation plans and arrangements required to be filed as
exhibits to the Form 10-K pursuant to Item 601.
(b) REPORTS ON FORM 8-K
1. In a Current Report on Form 8-K, dated December 2, 1994, the
Companyreported on twoproposals with contingencies to acquire the outstanding
shares ofthe Company. No assuranceswere given that either of the proposals would
be consummated.
2. In a Current Report on Form 8-K, dated December 6,1994, the
Companyreported that theInvestment Committee of the Board of Directors agreed to
enterinto a periodof exclusivenegotiations with a group of officers, managers
and franchiseddealers("Dealer-ManagementGroup") that recently made an offer to
acquire the outstandingshares of theCompany and thatAKH Company, Inc., who had
made a previous offer to acquire theCompany hadadvised theInvestment Committee
it was contemplating deferring any furtherproposal aslong as the
Dealer-Management Group's bid remains under activeconsideration. The Company
also reported that twoseparate class action lawsuits had been filed against the
Companyand its ninedirectorssimilarly requesting, among other things, the court
to enjoin thesale of theCompany to theDealer-Management Group.
(c) EXHIBITS
Exhibits required by Item 601 of Regulation S-K are listed aboveunder (a) (3)of
this Item 14.
(d) FINANCIAL STATEMENT SCHEDULES
Financial Statement Schedules are listed above under (a) (2) of this Item 14.
SIGNATURES
Pursuant to the requirements of Section 13 of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Dated: September 22, 1995
BIG O TIRES, INC., a Nevada corporation
By: /s/ JOHN E. SIIPOLA
John E. Siipola
Member of the Office of the
Chief Executive and Chairman
By: /s/ HORST K. MEHLFELDT
Horst K. Mehlfeldt
Member of the Office of the
Chief Executive and Vice-Chairman
By: /s/ STEVEN P. CLOWARD
Steven P. Cloward
Member of the Office of the
Chief Executive and President
By: /s/ JOHN B. ADAMS
John B. Adams
Principal Accounting Officer
By: /s/ JOHN B. ADAMS
John B. Adams
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
Date Name and Title Signature
- ---- -------------- ---------
September 22, 1995 John E. Siipola JOHN E. SIIPOLA
Director, Member of the Office of the
Chief Executive and Chairman of the Board
Horst K. Mehlfeldt HORST K. MEHLFELDT
Director, Member of the Office of the
Chief Executive and Vice-Chairman of the Board
Steven P. Cloward STEVEN P. CLOWARD
Director, Member of the Office of the
Chief Executive and President
John B. Adams JOHN B. ADAMS
Director and Principal
Financial Officer
Ronald D. Asher RONALD D. ASHER
Director
Frank L. Carney FRANK L. CARNEY
Director
Everett H. Johnston EVERETT H. JOHNSTON
Director
Ralph J. Weiger RALPH J. WEIGER
Director
C. Thomas Wernholm C. THOMAS WERNHOLM
Director
September 22, 1995
By: /s/ PHILIP J. TEIGEN
Philip J. Teigen
Attorney-in-Fact
September __, 1995 Robert K. Lallatin ________________________
Robert K. Lallatin
EXHIBIT INDEX
EXHIBIT DESCRIPTION
(3.1) Certificate of Amendment to Restated Articles of Incorporation of
Big O Tires, Inc.dated June 10, 1992 and Restated Articles of Incorporation of
Big O Tires,Inc. dated August 17,1987 (incorporated by reference to Exhibit 3 to
Quarterly Report on Form 10-Q for quarter ended June 30, 1992). PAGE NO. -
N/A
(3.2) Amended and Restated Bylaws of Big O Tires, Inc., a Nevada
corporation, as amended, August 26, 1994 (incorporated by reference to Exhibit 2
to Current Report on Form 8-K dated August 26, 1994). PAGE NO. - N/A
(4.1) Rights Agreement dated as of August 26, 1994, between Big O Tires,
Inc. and Interwest Co., Inc., as Rights Agent (incorporated by reference to
Exhibit 1 to Current Report on Form 8-K dated August 26, 1994). PAGE NO. -
N/A
(10.1) 1994 Restatement of Employee Stock Ownership Plan and Trust Agreement
of Big O Tires, Inc. (incorporated by reference to Exhibit 10.3 to Big O Tires,
Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994).
PAGE NO. - N/A
(10.2) Big O Tires, Inc. Director and Employee Stock Option Plan
(incorporated by reference to Exhibit 10.11 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1988). PAGE NO. - N/A
(10.3) First Amendment to the Big O Tires, Inc. Director and Employee Stock
Option Plan (incorporated by reference to Exhibit 10.10 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1989).
PAGE NO. - N/A
(10.4) Amendment No. 2 to the Big O Tires, Inc. Director and Employee Stock
Option Plan (incorporated by reference to Exhibit 10.16 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1992).
PAGE NO. - N/A
(10.5) Ultimate Net Loss Agreement between Big O Tires, Inc. and FBS Business
Finance Corporation dated January 13, 1989 (incorporated by reference to Exhibit
10.34 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year
ended December 31, 1988). PAGE NO. - N/A
(10.6) Purchase Agreement effective June 30, 1987, and related documents
including Promissory Notes, Modification Agreements, Security Agreements,
Guaranty Agreement, and
Subleases in connection with a purchase by C.S.B. Partnership and three
individuals including Ronald D. Asher, of three Big O Franchise Retail Stores in
California from Security/Cal, Inc., a wholly-owned subsidiary of the Company,
and H.R.I., Inc., a wholly-owned subsidiary of Security/Cal, Inc. (incorporated
by reference to Exhibit 10.63 to Big O Tires, Inc.'s Annual Report on Form 10-K
for the fiscal year ended December 31, 1987). PAGE NO. - N/A
(10.7) Purchase Agreement effective November 1, 1987, and related documents
including Promissory Notes, Security Agreements, Guaranty Agreements, Subleases,
and Franchise Agreements in connection with a purchase by C.S.B. Partnership and
its three general partners, including Ronald D. Asher, of two Big O Franchise
Retail Stores in California from Security/Cal, Inc. and H.R.I., Inc. (Seller)
(incorporated by reference to Exhibit 10.45 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1988). PAGE NO. - N/A
(10.8) Purchase Agreements effective July 5, 1988, October 1, 1988, and
November 14, 1988, and related documents including Promissory Notes, Security
Agreements, Guaranty Agreements, and Subleases in connection with a purchase by
C.S.B. Partnership and three individuals including Ronald D. Asher of three Big
O Franchise Retail Stores in California from Big O Tires, Inc., Security/Cal,
Inc., a wholly-owned subsidiary of the Company, and H.R.I., Inc., a wholly-owned
subsidiary of Security/Cal, Inc. (incorporated by reference to Exhibit 10.46 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1988). PAGE NO. - N/A
(10.9) Agreement and Release dated October 31, 1989, and related documents
including Promissory Note, related Subleases, Assignment of Lease Rights, and
Performance Guarantee in connection with the purchase by C.S.B. Partnership and
its general partners, including Ronald D. Asher, of two (2) Big O franchise
Retail Stores in California, owned by GEM Tire, Inc. from the Company
(incorporated by reference to Exhibit 10.57 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1989). PAGE NO. - N/A
(10.10) Ultimate Net Loss Agreement, dated as of December 1, 1990, by and
between Big O Tires, Inc. and Northcross Financial Services, Inc., ICON Capital
Corp., in its individual capacity and on behalf of ICON Cash Flow Partners,
L.P., Series A, ICON Cash Flow Partners, L.P., Series B and any future
partnerships on which it may be the general partner and/or manager (incorporated
by reference to Exhibit 10.70 to Big O Tires, Inc.'s Annual Report on Form 10-K
for the fiscal year ended December 31, 1990). PAGE NO. - N/A
(10.11) Loan and Security Agreement dated October 15, 1991, with its primary
lender together with exhibits and appendices (incorporated by reference to
Exhibit 10.57 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1991). PAGE NO. - N/A
(10.12) Assignment for Security (Trademarks and Trademark Licenses), dated
October 15, 1991, providing collateral assignment of Big O Tires, Inc.'s and its
subsidiaries' trademark and trademark licenses to its primary lender
(incorporated by reference to Exhibit 10.58 to Big O Tires, Inc.'s Annual Report
on Form 10-K for the fiscal year ended December 31, 1991). PAGE NO. - N/A
(10.13) Stock Pledge Agreement dated October 15, 1991, whereunder Big O
Tires, Inc. pledged stock holdings of its subsidiary companies to its primary
lender (incorporated by reference to Exhibit 10.59 to Big O Tires, Inc.'s Annual
Report on Form 10-K for the fiscal year ended December 31, 1991). PAGE NO. -
N/A
(10.14) Continuing Guaranty Agreement dated October, 15, 1991, providing the
guarantee by certain of Big O Tires, Inc.'s subsidiary companies for the
obligations of Big O Tires, Inc. under the Loan and Security Agreement with its
primary lender (incorporated by reference to Exhibit 10.60 to Big O Tires,
Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 1991).
PAGE NO. - N/A
(10.15) First Amendment to Loan and Security Agreement, dated as of November
18, 1991, with its primary lender (incorporated by reference to Exhibit 10.62 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1991). PAGE NO. - N/A
(10.16) Deed of Trust, Assignment of Rents, Security Agreement and Fixture
Filing dated as of November 19, 1991, for the benefit of its primary lender,
which now enjoys a first lien position on Big O Tires, Inc.'s Vacaville,
California Regional Sales and Service Center (incorporated by reference to
Exhibit 10.65 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal
year ended December 31, 1991). PAGE NO. - N/A
(10.17) Secured Promissory Note dated April 3, 1992, in the original
principal amount of $3,000,000, payable to the order of its primary lender,
which evidences Big O Tires, Inc.'s $3,000,000 term loan facility (incorporated
by reference to Exhibit 10.67 to Big O Tires, Inc.'s Annual Report on Form 10-K
for the fiscal year ended December 31, 1991).
PAGE NO. - N/A
(10.18) 1994 Incentive Bonus Plans (incorporated by reference to Exhibit
10.43 to Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year
ended December 31, 1993). PAGE NO. - N/A
(10.19) Agreement of Joint Venture of Big O/C.S.B. Joint Venture dated as of
June 1, 1992, by and between Big O Retail Enterprises, Inc., a wholly-owned
subsidiary of Big O Tires, Inc., and C.S.B. Partnership, a California general
partnership (incorporated by reference to Exhibit 10.70 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1991).
PAGE NO. - N/A
(10.20) Amendment No. 1 to Agreement of Joint Venture of Big O/C.S.B. Joint
Venture dated as of May 15, 1993 (incorporated by reference to Exhibit 10.27 to
Big O Tires, Inc.'s Annual Report on Form 10-K for the fiscal year ended
December 31, 1993).
PAGE NO. - N/A
(10.21) Purchase Agreement for Private Brand Name Tires between Big O Tires,
Inc. and The Kelly-Springfield Tire Co., dated August 16, 1992 (incorporated by
reference to Exhibit 10.71 to Big O Tires, Inc.'s Annual Report on Form 10-K for
the fiscal year ended
December 31, 1991). PAGE NO. - N/A
(10.22) Big O Tires, Inc. Long Term Incentive Plan (incorporated by
reference to Exhibit 55 to Big O Tires, Inc.'s Annual Report on Form 10-K for
the fiscal year ended December 31, 1992). PAGE NO. - N/A
(10.23) Amendment No. 1 to Big O Tires, Inc. Long Term Incentive Plan
(incorporated by reference to Exhibit 56 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992). PAGE NO. - N/A
(10.24) Amendment No. 2 to Big O Tires, Inc. Long Term Incentive Plan
(incorporated by reference to Exhibit 57 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992). PAGE NO. - N/A
(10.25) Agreement of Joint Venture of Big O/S.A.N.D.S. Joint Venture
(incorporated by reference to Exhibit 58 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992). PAGE NO. - N/A
(10.26) Commitment Letters dated July 22, 1992, from AT&T Capital
Corporation (incorporated by reference to Exhibit 64 to Big O Tires, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 1992).
PAGE NO. - N/A
(10.27) Agreement dated as of November 15, 1992, among Peerless Trading
Company, Limited, Delaware Liquidators, Inc. dba Trade Center Imports, and Big O
Tires, Inc.; Purchase Money Non-Negotiable Promissory Note dated as of November
15, 1992, from Peerless Trading Company, Limited to Big O Tires, Inc.; and
amendment dated January 19, 1993 to the Agreement dated November 15, 1992
(incorporated by reference to Exhibit 66 to Big O Tires, Inc.'s Annual Report on
Form 10-K for the fiscal year ended December 31, 1992). PAGE NO. - N/A
(10.28) Marketing Agreement for Private Brand Tires between Big O Tires,
Inc. and General Tire, Inc., dated May 14, 1993 (incorporated by reference to
Exhibit 10.1 to Big O Tires, Inc.'s Current Report on Form 8-K dated April 30,
1993). PAGE NO. - N/A
(10.29) Closing Agreement between General Tire, Inc. and Big O Tires, Inc.,
dated May 14, 1993 (incorporated by reference to Exhibit 10.2 to Big O Tires,
Inc.'s Current Report on Form 8-K dated April 30, 1993). PAGE NO. - N/A
(10.30) Second Amendment to Loan and Security Agreement by and among its
primary lender and Big O Tires, Inc., Big O Retail Enterprises, Inc. and Big O
Tire of Idaho, Inc., dated May 14, 1993 (incorporated by reference to Exhibit
10.3 to Big O Tires, Inc.'s Current Report on Form 8-K dated April 30, 1993).
PAGE NO. - N/A
(10.31) Inventory Financing Agreement between The Kelly-Springfield Tire
Company and Big O Tires, Inc. and/or Big O Tire of Idaho, Inc. and/or Big O
Retail Enterprises, Inc., dated May 14, 1993 (incorporated by reference to
Exhibit 10.4 to Big O Tires, Inc.'s Current Report on Form 8-K dated April 30,
1993). PAGE NO. - N/A
(10.32) Demand Note in the original principal amount of $6,000,338.67 with
The Kelly-Springfield Tire Col. as Holder and Big O Tires, Inc., Big O Retail
Enterprises, Inc. and Big O Tire of Idaho, Inc. as Maker (incorporated by
reference to Exhibit 10.50 to Big O Tires, Inc.'s Annual Report on Form 10-K
dated April 30, 1993). PAGE NO. - N/A
(10.33) Purchase Agreement by and among Tire Brands, Inc. and Big O Tires,
Inc., dated as of April 30, 1993 (incorporated by reference to Exhibit 10.5 to
Big O Tires, Inc.'s Current Report on Form 8-K dated April 30, 1993). PAGE
NO. - N/A
(10.34) Consolidation and Modification Agreement among Big O Tires
(successor in interest to H.R.I., Inc. and Security/Cal, Inc.) and Big O Retail
Enterprises, Inc. and C.S.B. Partnership (incorporated by reference to Exhibit
10.51 to Big O Tires, Inc.'s Registration Statement No. 33-65852). PAGE NO.
- - N/A
(10.35) Modification of Consolidation and Modification Agreement by and
between C.S.B.
Partnership and Big O Tires, Inc. (incorporated by reference to Big O Tires,
Inc.'s Form 10-K for the year ended December 31, 1993). PAGE NO. - N/A
(10.36) Registration Rights Agreement dated June 28, 1993, between the
Selling Shareholder and Big O Tires, Inc. (incorporated by reference to Exhibit
10.52 to Big O Tires, Inc.'s Registration Statement No. 33-65852). PAGE NO.
- - N/A
(10.37) Loan Agreement and Promissory Note in the original principal amount
of $155,000.00 with C.S.B. Partnership as Maker (incorporated by reference to
Exhibit 10.44 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993).
PAGE NO. - N/A
(10.38) Loan Agreement and Promissory Note in the original principal amount
of $70,000.00 with Big O/C.S.B Joint Venture as Maker (incorporated by reference
to Exhibit 10.45 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993). PAGE NO. - N/A
(10.39) Loan Agreement and Promissory Note in the original principal amount
of $75,000.00 with Big O/S.A.N.D.S. Joint Venture as Maker (incorporated by
reference to Exhibit 10.46 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993). PAGE NO. - N/A
(10.40) Commercial Note and Loan Agreement, Commercial Mortgage and
Environmental Certificate between Big O Development, Inc. and National City
Bank, Kentucky, and Guaranty Agreement of Big O Tires, Inc. guaranteeing the
obligations of Big O Development, Inc. to National City Bank, Kentucky in
connection with the borrowing of $1,500,000 for construction of the Company's
Regional Sales and Service Center in New Albany, Indiana (incorporated by
reference to Exhibit 10.47 to Big O Tires, Inc.s Form 10-K for the fiscal year
ended December 31, 1993). PAGE NO. - N/A
(10.41) Construction Agreement between Big O Development, Inc. and Koetter
Construction, Inc. to construct the Regional Sales and Service Center in Floyd,
County, Indiana (incorporated by reference to Exhibit 10.48 to Big O Tires,
Inc.'s Form 10-K for the fiscal year ended December 31, 1993). PAGE NO. -
N/A
(10.42) Purchase and Sale Agreement and Joint Escrow Instructions by and
between Western Realco and Big O Tires, Inc. for the purchase of the Company's
Regional Sales and Service Center in Clark County, Nevada (incorporated by
reference to Exhibit 10.49 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993). PAGE NO. - N/A
(10.43) Lease between Big O Tires, Inc. and Simpson Dura-Vent Company, Inc.
dated January 24, 1994, for property located at 877 Cotting Court, Vacaville,
California and related election of option to accelerate occupation (incorporated
by reference to Exhibit 10.51 to Big O Tires, Inc.'s Form 10-K for the fiscal
year ended December 31, 1993). PAGE NO. - N/A
(10.44) Letter dated January 26, 1994 from General Tire, Inc. to the Company
terminating the Marketing Agreement for Private Brand Name Tires between Big O
Tires, Inc. and General Tire, Inc. dated May 14, 1993 (incorporated by reference
to Exhibit 10.52 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993). PAGE NO. -N/A
(10.45) Purchase Agreement by and between Caps Tire Limited Liability
Company and Intermountain Big O Realty for the Big O Tires Retail Store located
at 8151 East Arapahoe Road, Englewood, Colorado incorporated by reference to
Exhibit 10.53 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993). PAGE NO. - N/A
(10.46) Third and Fourth Amendments to Loan and Security Agreement by and
between Big O Tires, Inc. and its primary lender (incorporated by reference to
Exhibit 10.54 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993). PAGE NO. - N/A
(10.47) Limited Partnership Agreement by and between Donald J. Horton,
General Partner, Thomas L. Staker, General Partner, and Big O Tires, Inc.,
Limited Partner, dated as of December 31, 1993 (incorporated by reference to
Exhibit 10.56 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1993). PAGE NO. - N/A
(10.48) Loan Agreement and Guaranty, Promissory Note and Security Agreement
with Big O Tires, Inc. Employee Stock Ownership Plan ("ESOP") as Borrower, Big
O Tires, Inc., as Guarantor, and Key Bank of Wyoming, as Lender, in connection
with the refinancing of the ESOP debt in the amount of $960,000 (incorporated by
reference to Exhibit 10.57 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1993). PAGE NO. - N/A
(10.49) Amendment to Partnership Agreement dated August 25, 1994, by and
between Big O Development, Inc., a Colorado corporation, a wholly-owned
subsidiary of Big O Tires, Inc. and Mill Creek Associates, Ltd., a Colorado
limited partnership (incorporated by reference to Exhibit 10.2 to Big O Tires,
Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 1994).
PAGE NO. - N/A
(10.50) Agreement dated July 1, 1994, by and between General Tire, Inc., an
Ohio corporation and Big O Tires, Inc. (incorporated by reference to Exhibit
10.4 to Big O Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30,
1994). PAGE NO. - N/A
(10.51) Consulting Agreement by and between Big O Tires, Inc., and Horst K.
Mehlfeldt (incorporated by reference to Exhibit 10.5 to Big O Tires, Inc.'s
Quarterly on Form 10-Q dated September 30, 1994). PAGE NO. - N/A
(10.52) Letter Agreement dated January 10, 1995, amending the Consulting
Agreement by and between Big O Tires, Inc. and Horst K. Mehlfeldt (incorporated
by reference to Exhibit 10.3 to Big O Tires, Inc.'s Current Report on Form 8-K
dated January 10, 1995). PAGE NO. - N/A
(10.53) Letter Agreement dated July 12, 1994, by and between Big O Tires,
Inc. and PaineWebber Incorporated (incorporated by reference to Exhibit 10.6 to
Big O Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30, 1994).
PAGE NO. - N/A
(10.54) Letter Agreement dated March 23, 1994, by and between Big O Tires,
Inc. and The CIT Group/Equipment Financing, Inc., a New York corporation
(incorporated by reference to Exhibit 10.7 to Big O Tires, Inc.'s Quarterly
Report on Form 10-Q dated September 30, 1994). PAGE NO. - N/A
(10.55) Ultimate Net Loss Agreement dated October 21, 1994, by and between
Big O Tires, Inc. and The CIT Group/Equipment Financing, Inc., a New York
corporation (incorporated by reference to Exhibit 10.8 to Big O Tires, Inc.'s
Quarterly Report on Form 10-Q dated September 30, 1994). PAGE NO. - N/A
(10.56) Fifth Amendment to Loan and Security Agreement by and between Big O
Tires, Inc. and its former lender dated April 29, 1994 (incorporated by
reference to Exhibit 10.1 to Big O Tires, Inc.'s Quarterly Report on Form 10-Q
dated September 30, 1994). PAGE NO. - N/A
(10.57) Agreement by the Investment Committee of the Board of Directors and
the Management/Dealer participants dated December 22, 1994 (incorporated by
reference to Exhibit 10.1 to Big O Tires, Inc.'s Current Report on Form 8-K
dated December 6, 1994). PAGE NO. - N/A
(10.58) Letter dated December 13, 1994, to the Investment Committee of Big O
Tires, Inc. and the Management participants and Dealer representatives
(incorporated by reference to Exhibit 10.2 to Big O Tires, Inc.'s Current Report
on Form 8-K dated December 6, 1994). PAGE NO. - N/A
(10.59) Letter dated February 7, 1995, from the Dealer/Management Group to
the Company's Board Chairman (incorporated by reference to Exhibit 10.1 to Big O
Tires, Inc.'s Current Report on Form 8-K dated January 10, 1995). PAGE NO. -
N/A
(10.60) Agreement between the Company and the Management/Dealer participants
dated January 20, 1995 (incorporated by reference to Exhibit 10.2 to Big O
Tires, Inc.'s Current Report on Form 8-K PAGE NO. - N/A
(10.61) Form of Franchise Agreement currently in use (incorporated by
reference to Exhibit 10.61 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.62) Multi-Tenant Lease NNN dated December 1, 1994 between Botac VI
Leasing L.L.C., a Utah Limited Liability Company and Big O Development, Inc.
(incorporated by reference to Exhibit 10.62 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.63) Assignment and Assumption Agreement dated December 2, 1994 by Big O
Development, Inc., Big O Tires, Inc. and Botac VI Leasing, L.L.C. and Allstate
Life Insurance Company (incorporated by reference to Exhibit 10.63 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed). PAGE NO. - N/A
(10.64) Guarantee Agreement dated December 2, 1994 by Big O Tires, Inc., Big
O Development, Inc. and Allstate Life Insurance Company (incorporated by
reference to Exhibit 10.64 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.65) Closing Agreement dated December 2, 1994 by Big O Development, Inc.,
Big O Tires, Inc., Botac VI Leasing, L.L.C., and Allstate Life Insurance Company
(incorporated by reference to Exhibit 10.65 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.66) Commercial Contract to Buy and Sell Real Estate dated March 17, 1994
between Bailey's Moving and Storage and Big O Tires, Inc. (incorporated by
reference to Exhibit 10.66 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.67) Confidentiality Agreement dated September, 1994 between Big O Tires,
Inc. and Kenneth W. Pavia, Sr. (incorporated by reference to Exhibit 10.67 to
Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed). PAGE NO. - N/A
(10.68) Amendment No. 1 to the Big O Tires, Inc. Employee Stock Ownership
Plan and Trust Agreement dated September 12, 1994 (incorporated by reference to
Exhibit 10.68 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(10.69) Development Management Agreement dated September, 1994 between Ross
Development Management Group, Inc. and Big O Development, Inc. and Big O Tires,
Inc. (incorporated by reference to Exhibit 10.69 to Big O Tires, Inc.'s Form
10-K for the fiscal year ended December 31, 1994 as originally filed). PAGE
NO. - N/A
(10.70) Letter Agreement dated February 20, 1995 terminating the Consulting
Agreement between Big O Tires, Inc. and Horst K. Mehlfeldt (incorporated by
reference to Exhibit 10.70 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.71) 1995 Incentive Bonus Plans (incorporated by reference to Exhibit
10.71 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1994 as originally filed). PAGE NO. - N/A
(10.72) Commitment Letter dated February 16, 1994 between Big O Tires, Inc.
and AT&T Commercial Finance Corporation for real estate financing (incorporated
by reference to Exhibit 10.72 to Big O Tires, Inc.'s Form 10-K for the fiscal
year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.73) Commitment Letter dated February 16, 1994 between Big O Tires, Inc.
and AT&T Commercial Finance Corporation for equipment financing (incorporated by
reference to Exhibit 10.73 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.74) Extension letter dated December 9, 1994 between Big O Tires, Inc.
and AT&T Commercial Finance Corporation to extend existing lines of credit
through December 31, 1995 (incorporated by reference to Exhibit 10.74 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed). PAGE NO. - N/A
(10.75) Resignation letter dated February 27, 1995 from Robert L. Puckett
(incorporated by reference to Exhibit 10.75 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.76) Resignation letter dated February 24, 1995 from David W. Dwyer
(incorporated by reference to Exhibit 10.76 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.77) Revolving Credit Agreement dated January 23, 1995 between Big O
Tires, Inc. and The First National Bank of Chicago (incorporated by reference to
Exhibit 10.77 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(10.78) Consent, Acknowledgement and Access Agreement dated January 23, 1995
between The Bank of Cherry Creek, N.A., Kenneth B. Buckius and The First
National Bank of Chicago (incorporated by reference to Exhibit 10.78 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed). PAGE NO. - N/A
(10.79) Note Purchase Agreement dated April 27, 1994 between Big O Tires,
Inc. and USG Annuity & Life Company and Republic Western Insurance Company
(incorporated by reference to Exhibit 10.79 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.80) Franchise Agreement dated October 7, 1994 between Big O Tires, Inc.
and OK Tires, Inc. for the Retail Store located at 2830 West 3500 South, West
Valley City, Utah 84119 (incorporated by reference to Exhibit 10.80 to Big O
Tires, Inc.'s Form 10-K for the fiscal year ended December 31, 1994 as
originally filed). PAGE NO. - N/A
(10.81) Franchise Agreement dated November 26, 1993 between Big O Tires, Inc
and CAPS Tire Limited Liability Company for the Retail Store located at 8151
East Arapahoe Road, Englewood, Colorado 80112 (incorporated by reference to
Exhibit 10.81 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(10.82) Form of Confidentiality Agreement signed by dealers dated October
19, 1994 (incorporated by reference to Exhibit 10.82 to Big O Tires, Inc.'s Form
10-K for the fiscal year ended December 31, 1994 as originally filed). PAGE
NO. - N/A
(10.83) Ultimate Net Loss Agreement dated November 30, 1994, by and between
Big O Tires, Inc. and The CIT Group/Equipment Financing, Inc., a New York
corporation (incorporated by reference to Exhibit 10.83 to Big O Tires, Inc.'s
Form 10-K for the fiscal year ended December 31, 1994 as originally filed).
PAGE NO. - N/A
(10.84) Inventory Financing Agreement together with a Demand Note dated
September 30, 1994, by and between The Kelly-Springfield Tire Company and Big O
Tires, Inc., Big O Retail Enterprises, Inc. and Big O Tire of Idaho, Inc.
(incorporated by reference to Exhibit 10.84 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.85) Supplemental Executive Retirement Plan dated December 7, 1994, by
Big O Tires, Inc., effective January 1, 1994 (incorporated by reference to
Exhibit 10.85 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(10.86) Forms of Stock Appreciation Rights Agreement dated February 15,
1995, between Big O Tires, Inc. and the Members of the Chief Executive Office
(incorporated by reference to Exhibit 10.86 to Big O Tires, Inc.'s Form 10-K for
the fiscal year ended December 31, 1994 as originally filed). PAGE NO. - N/A
(10.87) Letter Agreement dated March 24, 1995, regarding severance package,
between Big O Tires, Inc. and John E. Siipola (incorporated by reference to
Exhibit 10.87 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(10.88) Letter Agreement dated March 24, 1995, regarding severance package,
between Big O Tires, Inc. and Horst K. Mehlfeldt (incorporated by reference to
Exhibit 10.88 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended
December 31, 1994 as originally filed). PAGE NO. - N/A
(21.1) Big O Tires, Inc. Subsidiaries (incorporated by reference to Exhibit
21.1 to Big O Tires, Inc.'s Form 10-K for the fiscal year ended December 31,
1994 as originally filed). PAGE NO. - N/A
(23.1) Consent of Deloitte & Touche. PAGE NO - 23
(24.1) Powers of Attorney executed by each of the Directors of Big O Tires,
Inc.(incorporated by reference to Exhibit 25.1 to Big O Tires, Inc.'s Form 10-K
for the fiscal year ended December 31, 1994 as originally filed). PAGE NO -
N/A
(27.1) Big O Tires, Inc.'s Financial Data Schedule (incorporated by
reference to Exhibit 27.1 to Big O Tires, Inc.'s Form 10-K for the fiscal year
ended December 31, 1994 as originally filed). PAGE NO. - N/A
(99.1) October 31, 1994 press release issued by AKH Company, Inc., a
California based retail tire chain, doing business as "Discount Tire Centers"
and "Evans Tire Service Centers" (incorporated by reference to Exhibit 99.1 to
Big O Tires, Inc.'s Quarterly Report on Form 10-Q dated September 30, 1994).
PAGE NO. - N/A
(99.2) November 1, 1994 press release issued by Big O
Tires,Inc.(incorporated by reference to Exhibit 99.2 to Big O Tires, Inc.'s
Quarterly Report on Form 10-Q dated September 30, 1994). PAGE NO. - N/A
<PAGE>
Exhibit 23.1
INDEPENDENT AUDITOR'S CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-36802, Registration Statement No. 33-41875, and Registration Statement No.
33-42021 of Big O Tires, Inc. on Forms S-8 of our report dated March 13, 1995,
appearing in this Annual Report on Form 10-K of Big O Tires, Inc. for the year
ended December 31, 1994.
/s/ Deloitte & Touche LLP
DELOITTE & TOUCHE LLP
Denver, Colorado
March 29, 1995
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X} QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ____________.
Commission File Number: 1-8833
BIG O TIRES, INC.
(Exact name of registrant as specified in its charter)
NEVADA 87-0392481
(State or other juris- (I.R.S. Employer
diction of incorporation) Identification No.)
11755 EAST PEAKVIEW AVENUE, ENGLEWOOD, COLORADO 80111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (303) 790-2800
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
The number of shares of registrant's common stock outstanding on November 10,
1995 was 3,317,840.
The total number of pages is 69.
<PAGE>
BIG O TIRES, INC.
CONSOLIDATED BALANCE SHEETS
---------------------------
(000s)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
------------- ------------
Unaudited
-------------
ASSETS
- -------------------------------------
<S> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 854 $ 4,882
Trade accounts receivable, net of
allowance for doubtful accounts 12,533 8,165
Other receivables 1,015 2,905
Current portion of notes receivable 631 733
Inventories 17,751 14,219
Deferred income taxes 2,300 2,126
Other current assets 480 688
------- --------
Total current assets 35,564 33,718
------- --------
NOTES RECEIVABLE, net of current portion 2,769 3,193
------- --------
PROPERTY, PLANT and EQUIPMENT 23,969 17,177
Less accumulated depreciation
and amortization (4,874) (5,146)
------- --------
19,095 12,031
------- --------
INTANGIBLE AND OTHER ASSETS:
Distribution rights 8,869 9,077
Equity in joint ventures and
unconsolidated subsidiaries 887 1,129
Other 2,662 2,820
------- --------
12,418 13,026
------- --------
TOTAL ASSETS $ 69,846 $ 61,968
------- --------
------- --------
</TABLE>
-See notes to consolidated financial statements-
<PAGE>
BIG O TIRES, INC.
CONSOLIDATED BALANCE SHEETS
---------------------------
(000s)
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
------------- ------------
Unaudited
-------------
<S> <C> <C>
CURRENT LIABILITIES:
Accounts payable $ 5,418 $ 650
Accrued expenses 2,525 2,485
Warranty reserve 4,225 3,850
Current portion of long-term debt
and capital lease obligations 1,643 2,066
------- --------
Total current liabilities 13,811 9,051
------- --------
LONG-TERM DEBT AND CAPITAL LEASE
OBLIGATIONS, net of current portion 17,376 15,906
------- --------
OTHER LONG-TERM LIABILITIES 1,311 1,433
------- --------
EMPLOYEE STOCK OWNERSHIP PLAN OBLIGATIONS 188 449
------- --------
SHAREHOLDERS' EQUITY:
Common stock 335 334
Capital contributed in excess of par 15,445 15,418
Retained earnings 21,864 20,419
------- --------
37,644 36,171
Less: Employee stock ownership
plan obligations (188) (449)
Deferred stock grant compensation (175) (472)
Treasury stock (121) (121)
------- --------
37,160 35,129
------- --------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 69,846 $ 61,968
------- --------
------- --------
</TABLE>
-See notes to consolidated financial statements-
<PAGE>
BIG O TIRES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(000s except for share and per share amounts)
<TABLE>
<CAPTION>
For the three months For the nine months
ended September 30, ended September 30,
--------------------- ----------------------
1995 1994 1995 1994
------------ ----------- ------------- ------------
<S> <C> <C> <C> <C>
NET SALES:
Product and franchising $ 39,551 $ 36,652 $ 103,142 $ 94,132
Real estate 1,191 -- 4,530 --
------------ ----------- ------------- ------------
40,742 36,652 107,672 94,132
------------ ----------- ------------- ------------
COST OF SALES:
Product and franchising 31,662 29,091 80,412 72,203
Real estate 1,128 -- 4,325 --
------------ ----------- ------------- ------------
32,790 29,091 84,737 72,203
------------ ----------- ------------- ------------
GROSS PROFIT:
Product and franchising 7,889 7,561 22,730 21,929
Real estate 63 -- 205 --
7,952 7,561 22,935 21,929
------------ ----------- ------------- ------------
EXPENSES, net:
Selling & administrative 5,035 4,668 14,672 14,772
Product delivery expense 1,032 908 2,973 2,218
Interest expense 366 510 1,199 1,177
Shareholder proposal expense 419 246 967 345
Loss on sale or closure
of retail stores 217 209 312 911
Warehouse consolidation costs -- -- 320 --
------------ ----------- ------------- ------------
7,069 6,541 20,443 19,423
------------ ----------- ------------- ------------
INCOME BEFORE INCOME TAXES 883 1,020 2,492 2,506
------------ ----------- ------------- ------------
PROVISION FOR INCOME TAXES:
Current 433 537 1,221 1,429
Deferred (61) (116) (174) (377)
------------ ----------- ------------- ------------
372 421 1,047 1,052
------------ ----------- ------------- ------------
NET INCOME $ 511 $ 599 $ 1,445 $ 1,454
------------ ----------- ------------- ------------
------------ ----------- ------------- ------------
EARNINGS PER SHARE $ .15 $ .18 $ .43 $ .44
------------ ----------- ------------- ------------
------------ ----------- ------------- ------------
WEIGHTED AVERAGE SHARES AND
COMMON STOCK EQUIVALENTS
OUTSTANDING 3,380,116 3,358,696 3,377,083 3,337,539
------------ ----------- ------------- ------------
------------ ----------- ------------- ------------
</TABLE>
-See notes to consolidated financial statements-
<PAGE>
BIG O TIRES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(000s)
<TABLE>
<CAPTION>
For the nine months
ended September 30,
--------------------------
1995 1994
---------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 1,445 $ 1,454
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 945 913
Amortization of intangibles 302 350
Cash flows from changes in working capital (1,031) (6,058)
Other (209) 848
---------- ----------
Total adjustments 7 (3,947)
---------- ----------
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 1,452 (2,493)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes receivable (139) (509)
Payments received on notes receivable 1,198 937
Proceeds from sales of property and equipment 2,999 1,186
Equity investments in affiliates (111) (160)
Purchase of property and equipment (9,376) (3,419)
Purchase of Company-owned retail stores (141) 410
Increase in retail store construction in progress (1,034) --
Sale of Company-owned retail stores -- 51
Acquisition of property held for resale -- (84)
---------- ----------
NET CASH USED BY
INVESTING ACTIVITIES (6,604) (2,408)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 3,009 14,548
Principal payments on long-term debt and capital lease obligations (1,993) (5,807)
Proceeds from sale of common stock and stock options exercised 108 96
---------- ----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 1,124 8,837
---------- ----------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (4,028) 3,936
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 4,882 1,113
---------- ----------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 854 $ 5,049
---------- ----------
---------- ----------
</TABLE>
-See notes to consolidated financial statements-
BIG O TIRES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(000s)
<TABLE>
<CAPTION>
For the nine months
ended September 30,
----------------------
1995 1994
--------- --------
<S> <C> <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ 1,312 $ 1,100
Income taxes 1,186 1,392
SUPPLEMENTAL DISCLOSURE OF NON-CASH
INVESTING AND FINANCING ACTIVITIES:
Accounts receivable transferred to long-term
notes receivable 533 203
Equity investments in affiliates -- 55
Inventories received in satisfaction of long-term
notes receivable -- 454
Common stock issued as unearned compensation -- 520
Decrease in employee stock ownership plan obligations 261 536
Restricted stock grants canceled 80 --
</TABLE>
-See notes to consolidated financial statements.
<PAGE>
BIG O TIRES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND 1994
UNAUDITED
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES:
REFERENCE TO ANNUAL REPORT:
These financial statements should be read in conjunction with the Annual Report
on Form 10-K for the year ended December 31, 1994, since certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to the rules and regulations of the United States Securities
and Exchange Commission ("SEC"). These interim financial statements reflect all
adjustments which are, in the opinion of Management, necessary for a fair
presentation of the financial position, results of operations and cash flows of
the Company for the interim periods. Such adjustments are of a normal recurring
nature. Operating results for the three and nine months ended September 30,
1995, are not necessarily indicative of the results that may be expected for the
year ending December 31, 1995.
STOCK OPTION PLAN:
On January 1, 1995, the Company granted options for 4,943 shares of the
Company's $.10 par value common stock ("Common Stock") to certain directors and
employees who elected to participate in the Company's Director and Employee
Stock Option Plan ("Plan"). As of September 30, 1995, the liability for the
options granted on January 1, 1995 pursuant to the Plan was approximately
$58,000.
STOCK APPRECIATION RIGHTS:
In February 1995, the Company's Board of Directors granted Stock Appreciation
Rights ("SAR") to each of the three members of the Office of the Chief
Executive. Each SAR agreement grants 100,000 share equivalent units, each of
which represents an equal undivided interest in the future appreciation in the
value of a share of the Company's Common Stock on the exercise date. As of
September 30, 1995, no liability exists as a result of the SARs because the
value of the Common Stock was less than the base value, as defined in the
agreement.
In July 1995, the three members of the Office of the Chief Executive signed a
letter agreement stating, among other things, that the SAR agreements would
terminate and they would forfeit the unexercised SAR's as to all units, vested
and non-vested, if and when the proposed merger, described below, takes place,
subject to certain other conditions.
CREDIT FACILITY:
On January 23, 1995, the Company replaced its previously existing credit
facility with a $20 million Revolving Credit Agreement which expires January 22,
1998. Borrowings under the agreement (limited to a portion of eligible
collateral) were $5,725,000 at September 30, 1995. The agreement contains
various covenants and restrictions (including a restriction which precludes the
payment of cash dividends or the return of capital to shareholders) with which
the Company was in compliance at September 30, 1995.
SENIOR SECURED NOTES:
In April 1994, the Company sold 8.71% Senior Secured Notes in the aggregate
principal amount of $8,000,000, at par, which will mature in 1998 - 2004. The
notes are collateralized by a deed of trust on land and buildings located in
Nevada and Idaho.
UNEARNED STOCK COMPENSATION:
On August 5, 1994, the Company made restricted stock grants for 28,478 shares
(net of subsequent cancellation of 5,188 shares) of the Company's Common Stock
and granted options for an additional 41,942 shares of the Company's common
stock to certain officers in accordance with the Company's Long Term Incentive
Plan ("LTI Plan").
In connection with the restricted stock grants, compensation expense is being
recognized over a vesting period of three to five years in accordance with the
provisions of the LTI Plan. Compensation expense recognized for the three and
nine months ended September 30, 1995, was approximately $56,000 and $216,000,
respectively.
FRANCHISE AND ROYALTY FEES:
The Company receives initial franchise fees and continuing royalty fees from its
franchised Big O dealers. The initial franchise fees and continuing royalty
fees were $1,924,000 and $5,317,000 for the three and nine months ended
September 30, 1995, respectively, and $1,867,000 and $4,952,000 for the three
and nine months ended September 30, 1994, respectively.
SHAREHOLDER PROPOSAL EXPENSE:
At the Annual Meeting of Shareholders held in June 1994, the shareholders
adopted a resolution calling for the Company to engage an investment banker to
evaluate all alternatives for enhancing the values of the Company. Action
pursuant to this proposal led to the Company entering into a merger agreement
with a group of the Company's franchised dealers and senior managers of the
Company on July 24, 1995. The cost associated with the implementation of the
shareholder proposal for the three and nine months ended September 30, 1995 was
$419,000 and $967,000, respectively.
EARNINGS PER SHARE:
Earnings per share is computed using the weighted-average number of outstanding
shares during each period presented. Common stock equivalents are included but
did not have a material effect on the computation.
LITIGATION:
As a franchisor and wholesale distributor, the Company licenses the use of its
trade names, service marks and trademarks to the Company's franchisees and other
licensees and distributes tire products manufactured by the Company's suppliers
("Suppliers") under the Company's trade names and trademarks. As a result, the
Company has been named as a defendant in a number of lawsuits alleging negligent
acts and/or omissions by the Company's franchisees of alleged defective
workmanship and/or materials of the products produced by the Suppliers. As of
September 30, 1995, there were 35 such lawsuits pending in which the Company was
named as a defendant. Of those 35 lawsuits, only two directly involve the
Company. The other 33 involve franchisees of the Company or alleged tire
failures of its Suppliers. In most of the 35 lawsuits in which the Company is
named as a defendant, the claims for damages are not specific. It is possible
that a judgment may be rendered against the Company in one or more of these
lawsuits but the Company is unable to estimate the amount of any such possible
judgments. Over the past five years, the judgments that have been rendered
against the Company and settlements made by the Company in lawsuits similar to
the 35 lawsuits have not resulted in material losses to the Company. Therefore,
based upon such history, the Company does not believe that the Company will
suffer any material loss as a result of the 35 lawsuits pending against the
Company on September 30, 1995.
The Company requires that both the Company's franchisees and Suppliers indemnify
and protect the Company against claims resulting from the alleged negligent acts
and/or omissions of the franchisees and the alleged defects in workmanship
and/or materials of its Suppliers. In addition, the Company carries its own
insurance. The 33 lawsuits referred to above are being defended by attorneys
who have been retained by the applicable insurance companies and the Company is
not actively involved in the defense thereof. Historically, the Company has
been able to rely upon its franchisees and Suppliers and their insurance
carriers to defend, protect and indemnify the Company against such types of
lawsuits. Accordingly, even if a judgment is rendered against the Company in
any of these lawsuits, because of the insurance and indemnities described above,
management does not believe that the Company would incur any loss as a result of
any such judgment.
The Company is also a defendant in eight additional lawsuits which are
incidental to the Company's business and for which the Company does not believe
it is liable, but which are not covered by insurance. Thus, the Company is
directly and actively involved in its own defense and has sufficient information
to form a judgment on the likely outcome and exposure of such cases. Based on
this analysis, the Company believes that the ultimate outcome of these cases
will not have a material adverse effect on the Company's financial statements.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS:
LIQUIDITY AND CAPITAL RESOURCES:
SHAREHOLDER PROPOSAL
In June 1994, the shareholders adopted a proposal requesting the Company to
engage an investment banker to evaluate all alternatives to enhance the values
of the Company. In implementing this shareholder proposal, the Board of
Directors established the Investment Committee of the Board which retained
PaineWebber Incorporated ("PaineWebber") to fulfill this shareholder proposal.
In June 1995, the Company's Board of Directors approved in principle a proposal
to recommend to the Company's shareholders that the shareholders sell at a price
of $16.50 per share to a group consisting of a group of the Company's franchised
dealers and senior managers (the "Acquisition Group"). In July 1995, the
Company entered into an Agreement and Plan of Merger ("Merger Agreement") with
BOTI Holdings, Inc. and BOTI Acquisition Corp., (collectively "Purchaser"),
companies formed by the Acquisition Group to accomplish the merger. The Merger
Agreement is subject to approval of the Company's stockholders. Among other
conditions, the consummation of the merger was also subject to the receipt of
fairness opinions, the Acquisition Group obtaining acceptable financing,
participation in the acquisition by not less than 80% of the shares held by the
Company's ESOP and participation in the acquisition by not less than 85% of the
franchised Big O Tire stores as of the date of the Merger Agreement. In August
1995, the Purchaser presented to the Investment Committee of the Board of
Directors evidence of financing commitments subject to various contingencies,
the fulfillment of which would occur in the future. The Investment Committee
reviewed the financing commitments obtained by the Purchaser and determined that
financing commitments existed, in the aggregate, for amounts sufficient to
provide funds to pay the merger consideration at that time. However, the
financing contingency was not removed. In October 1995, the Company received
notice that the Purchaser advised the Company that dealers owning 82% of the
Company's franchised tire stores, as of the date of the Merger Agreement,
elected to participate indirectly in the acquisition of the Company. The
Purchaser advised the Company that while 82% is less than the percentage
specified in the Merger Agreement, such percentage was sufficient to enable the
Purchaser to proceed with satisfying certain financing contingencies and other
conditions of closing in the Merger Agreement and the Purchaser waived the 85%
contingency.
The Merger Agreement remains subject to approval by the Company's stockholders
and to the contingency that at least 80% of the shares held by the ESOP
participate in the acquisition.
By its terms, the Merger Agreement puts certain constraints on the Company's
conduct of business pending the merger. These constraints provide that neither
the Company nor any of its subsidiaries shall take any action except in the
ordinary course of business and consistent with past practices. The Merger
Agreement also provides that any one member of a management committee,
consisting of the Chairman and Vice Chairman, and representatives of the
Purchaser, the President and the Executive Vice President of the Company, has
the right to object to expenditures, contingent liabilities or the acquisition
or disposition of assets which exceed $100,000 prior to the Company entering
into such transaction. If the management committee cannot then unanimously
agree to such expenditures or asset disposition or acquisition, the Merger
Agreement provides that approval may be obtained in writing from the Company and
from BOTI Holdings, Inc.
It is estimated that the expenses incurred by the Company in connection with the
merger will be approximately $1,400,000 in the aggregate, comprised of
approximately $11,000 for filing fees, $950,000 for financial advisory fees,
$350,000 for legal fees, $48,000 for solicitation expenses, $25,000 for
directors' fees and expenses, and $16,000 for miscellaneous expenses. In
addition, the Company has agreed to reimburse the Purchaser up to $750,000 for
its costs and expenses in structuring the merger and $217,000 for expenses
incurred in arranging the financing of the merger. Costs incurred for the three
and nine months ended September 30, 1995, were $419,000 and $967,000,
respectively.
Should the merger be approved, the Company anticipates that the surviving
corporation will require additional cash, including approximately $1.2 million
to retire the current senior notes and replace them with other financing,
approximately $2.0 million for fees associated with new debt financing, $300,000
for severance fees payable to two current officers who are not participating in
the acquisition, $750,000 for investment banker fees for the Purchaser, and
$250,000 in shareholder costs. Additionally, approximately $750,000 will be
required to cancel stock options held by current directors and employees.
WORKING CAPITAL
At September 30, 1995, the Company had $21,756,000 in working capital (defined
as current assets less current liabilities), which represented a net decrease of
$2,911,000 from December 31, 1994. Primary uses of working capital included the
purchase of the Las Vegas distribution facility for $7,972,000, purchase of
equipment of $1,404,000, and principal payments on long-term debt and capital
lease obligations of $1,992,000. These uses were partially offset by working
capital derived from borrowings on the Company's line of credit and other
long-term debt of $3,009,000, proceeds from sales of property and equipment of
$2,999,000 and working capital provided by operations of $1,452,000.
The Company's net trade receivables at September 30, 1995, increased by
$4,368,000 as compared to December 31, 1994. This increase resulted from the
effect of opening nine new stores (net of closures) during the first nine months
of 1995, normal seasonal increases, and continued success of the Company's
Cost-U-Less -TM- marketing program.
Inventories at September 30, 1995, increased by $3,532,000 as compared to
inventories at December 31, 1994. This increase resulted primarily from higher
inventory levels needed to support the increased sales due to the impact of the
nine additional stores opened during the first nine months of 1995 and the
normal seasonal increase in stocking levels to provide an adequate supply of
products to meet anticipated higher sales volumes which normally occur during
the fourth quarter of each year. Accounts payable at September 30, 1995,
increased $4,768,000 from December 31, 1994, as a result of the increased
inventory levels and extended payment terms on snow tires offered by the
Company's primary supplier.
LAS VEGAS RSC CONVERSION
In May 1994, the Company closed its Regional Service Center ("RSC") in
Vacaville, California, and consolidated its operations into the Ontario RSC.
The Vacaville warehouse was leased to an unrelated third party. In July 1995,
the Company sold this warehouse facility. The cash proceeds from the sale were
used to reduce the outstanding loan balance with First National Bank of Chicago
("First Chicago"). In March 1995, the Company closed its RSC in Denver,
Colorado, and consolidated its operations into the newly opened Las Vegas RSC.
The Denver RSC was sold to an unrelated third party in December 1994. (See
discussion under "Financial Commitments" below.) Ontario RSC operations were
fully converted to the new Las Vegas RSC in May 1995. While the Company is
obligated under the lease for the Ontario warehouse through May 1998, it sublet
this property to an unrelated third party for the remainder of the lease term
starting June 1995.
The results for the nine months ended September 30, 1995, include a $320,000
charge associated with the conclusion of this warehouse consolidation. This
charge resulted primarily from the sale of the Vacaville RSC facility at a price
less than previously anticipated as well as certain other costs that exceeded
expectations.
REAL ESTATE DEVELOPMENT
The Company's real estate development program involves Big O retail store site
selection and development by one of the Company's subsidiaries, and the
subsequent sale of these developed store sites to Franchisees that qualify for
Small Business Administration ("SBA") guaranteed loans. Significant financing
is required by the Company, which is planned to be repaid as the SBA guaranteed
financing is obtained by the prospective Franchisee. As of July 1995, permanent
financing had been approved for ten development projects through AT&T Capital
Corporation ("AT&T"). Due to the merger as described above, the agreement with
AT&T was terminated in August 1995. While the Company plans on continuing this
real estate development program, the extent of this development has been reduced
significantly. In connection with this reduction, $125,000 of costs relating to
terminated projects was expensed during the third quarter, 1995. The Company
anticipates funding future projects through its revolving line of credit, joint
ventures or directly with developers.
The Company completed the sales of eight real estate holdings during the first
nine months of 1995, including two during the third quarter of 1995. Five of
these real estate sales involved projects developed under the Company's real
estate development program, one related to a land sale for a site the Company
elected not to develop, and two sales related to retail properties previously
held as investments that the Company elected to sell.
CAPITAL EXPENDITURES
At September 30, 1995, the Company's subsidiary that is implementing the real
estate development program had approximately $3.1 million invested in
construction in progress for Big O retail store sites, an increase of $1.1
million since December 31, 1994. Additional capital expenditures are
anticipated in connection with these real estate development activities, which
are anticipated to be funded through the Company's revolving line of credit,
joint ventures or directly with developers.
In February 1995, the Company acquired the Las Vegas RSC at a total cost of
approximately $7,972,000. New equipment, including computer hardware and
software to operate this facility, will require approximately $1,400,000 in 1995
capital expenditures of which approximately $880,000 has been incurred as of
September 30, 1995. The Company is financing this equipment through its
existing revolving line of credit.
FINANCIAL COMMITMENTS
The Company's current operations are primarily funded through its revolving line
of credit with First Chicago which has a 1995 sub-limit of $6 million for
construction and permanent financing pursuant to the Company's real estate
development program.
Limited financing for the Company's real estate development was previously
provided by AT&T through an $11.75 million revolving credit line. In August
1995 the Company and AT&T mutually agreed to terminate this credit line for all
projects unfunded at that time.
In the fourth quarter of 1994 the Company sold approximately $3 million of long
term notes receivable. The Company successfully negotiated the sale of an
additional $.8 million of long term notes receivable in July 1995 and
approximately $.2 million in October 1995.
Management's discretion with respect to certain business matters is limited by
financial and other covenants contained in loan agreements with First Chicago,
the senior note holders, Kelly-Springfield Tire Company (a division of The
Goodyear Tire & Rubber Company) and other lenders. These covenants, among other
things, limit or prohibit the Company from (i) paying dividends on its capital
stock, (ii) incurring additional indebtedness, (iii) creating liens on or
selling certain assets, (iv) making certain loans, investments, or guarantees,
(v) violating certain financial ratios, (vi) repurchasing shares of its common
stock, (vii) making certain capital expenditures, and (viii) merging or selling
substantially all of its assets. At September 30, 1995, the Company was in
compliance with all of these covenants.
The Company has received notice from the senior note holders that the
consummation of the proposed merger will be an event of default, thus creating a
covenant violation. It is the Company's understanding that the Acquisition
Group is seeking replacement financing at this time. In compliance with the
terms of the Merger Agreement, the Company is contacting its other current
lenders and lessors where necessary in order to obtain the consents necessary
for the consummation of the merger.
The Company's continuing guarantees at September 30, 1995 were comprised
principally of the following:
Retail store financing $4.1 million
Notes receivable guarantees 1.6 million
Real estate lease guarantees 6.0 million
Employee Stock Ownership Plan .2 million
Denver RSC mortgage loan 2.8 million
SEASONALITY
The franchised and Company-owned retail stores experience some seasonal
variation in product sales because the sale of tires, wheels, and related
automotive products are generally greater during the summer months than in the
winter months. The Company generally experiences some seasonality, although not
to the same extent as the retail stores, since the Company maintains sales to
certain retail stores on a regional basis (e.g., snow tires and chains) that
offset the trend on a national basis.
ENVIRONMENTAL ISSUES
The Company and its franchisees are subject to federal and state environmental
regulations regarding the disposal of tires and used oil, and the handling and
storage of certain other substances. Such regulations have not previously had a
material effect on the Company's operations, and management does not believe
that they will have a material effect in the future since the Company has
adopted a policy of requiring Phase I environmental studies for any new projects
or the acquisition of any existing locations before such transactions are
consummated.
ACCOUNTING STANDARDS
The Company adopted Statement of Financial Accounting Standard (FAS) No. 114,
ACCOUNTING BY CREDITORS FOR IMPAIRMENT OF A LOAN, effective January 1, 1995.
The adoption of this FAS did not have a material effect on the Company's
financial position nor results of operations for the nine months ended September
30, 1995.
The Financial Accounting Standards Board (FASB) has issued Statement of
Financial Accounting Standard No. 121, ACCOUNTING FOR THE IMPAIRMENT OF
LONG-LIVED ASSETS AND FOR LONG-LIVED ASSETS TO BE DISPOSED OF, which is required
to
be implemented for the Company's fiscal year ending December 31, 1996. The
earlier adoption of this FAS would not have materially affected the Company's
financial position nor results of operations for the nine months ended September
30, 1995.
RESULTS OF OPERATIONS:
REVENUES
Net sales for the third quarter, 1995 increased by $4,090,000 as compared to the
third quarter, 1994 and net sales for the first nine months 1995 increased by
$13,540,000 over the first nine months of 1994. The sale of Big O brand units
increased by approximately 177,000 units (an increase of 17.5%) during the first
nine months of 1995 as compared to the corresponding period for 1994, and the
sale of other new tires decreased by approximately 46,000 units (a decrease of
12.5%) during the same period. The average selling price of Big O brand units
increased by $0.15 per unit (an increase of 0.3%) for the first nine months of
1995 as compared to the first nine months of 1994. The average selling price of
other new tires decreased by $0.57 (a decrease of 1.5%) during the first nine
months of 1995 as compared to the corresponding period in 1994. This decrease
was in response to increased competition in the industry and came in spite of
announced industry price increases.
Net sales for the third quarter of 1995 increased $4,090,000 as compared to the
third quarter of 1994, of which $1,191,000 related to the sale of two Company
developed real estate projects during the third quarter 1995. Other increases
included an increase of $1,123,000 in sales to existing dealers, sales to new
franchisees of $1,840,000 and an increase in royalty revenues of $57,000. These
increases were partially offset by a decrease of $487,000 which resulted from
the closing of franchisee retail stores which were operating during the third
quarter of 1994 but not 1995.
The increase in sales of $13,540,000 for the first nine months of 1995 included
an increase of $4,530,000 related to real estate sales, an increase of
$4,683,000 in sales to existing dealers, sales to new franchisees of $4,862,000
and an increase of $366,000 in royalty revenues. These increases were partially
offset by decreases in sales of $1,132,000 related to the closing of franchised
and Company-owned retail stores and $330,000 related to the sale of
Company-owned retail stores.
GROSS PROFIT
Gross profit for the third quarter 1995 increased by $391,000 as compared to the
third quarter of 1994, including an increase of $63,000 related to real estate
sales in 1995. The Company's product and franchising gross margin was 20.0% for
the third quarter of 1995 which represented a .6% decrease as compared to the
third quarter of 1994. This decrease in gross margin generated a decrease in
gross profit of $270,000, which was offset by an increase in gross profit of
$598,000 attributable to the higher product and franchising sales volumes. The
decrease in gross margin was primarily due to increased warranty and freight
expenses during the third quarter of 1995 over the third quarter of 1994.
Gross profit for the first nine months of 1995 increased by $1,006,000 as
compared to the first nine months of 1994, including an increase related to real
estate sales in 1995. The Company's product and franchising gross margin was
22.0% for the first nine months of 1995, a decrease of 1.3% from the first nine
months of 1994. An increase in gross profits of $2,099,000 was attributable to
the higher product and franchising sales volumes during the first nine months of
1995 as compared to the same period in 1994. This increase was partially offset
by the decrease of $1,298,000 due to the decrease in the gross margin which was
primarily related to the Company's Cost-U-Less -TM- marketing program.
NET EXPENSES
Selling and administrative expenses increased $367,000 for the third quarter of
1995 from the third quarter of 1994. This increase consisted primarily of an
increase in the provision for bad debts of $282,000, an increase of $125,000
related to costs associated with terminated real estate development projects and
an increase of $100,000 related to the writedown in value of one real estate
parcel. These increases were partially offset by a decrease in payroll and
related expenses of approximately $126,000.
Selling and administrative expenses decreased $100,000 for the first nine months
of 1995 as compared to the first nine months of 1994. This decrease was
primarily due to decreases related to the sale or closure of Company-owned
retail stores and decreases in the Company's proportionate share of joint
venture losses. These decreases were offset by increases related to the
provision for bad debts, additional costs associated with terminated real estate
development projects and writedowns in value for certain real estate projects.
Increases in selling and administrative expenses were also associated with
closing the Denver and Ontario RSC's and starting up of the new Las Vegas RSC
during 1995.
Interest expense decreased by $144,000 for the third quarter of 1995 as compared
to the same period for 1994. This decrease was primarily due to interest
concessions offered by a subordinated lender which was recorded in the third
quarter 1995 and also the assumption by the buyer of the Denver RSC mortgage
loan in December 1994. Interest expense for the nine months ended September 30,
1995 decreased by $22,000. This decrease resulted primarily from the
elimination of the Denver RSC mortgage loan which was offset somewhat by
increased borrowings under the Company's line of credit during the first half of
1995 for increased financing needs for the consolidation of three of the
Company's RSC's into the new Las Vegas RSC.
PART II
OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
Item 5. OTHER INFORMATION.
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
a. Exhibits
The following Exhibits are filed as part of this report and are
attached hereto:
(10.1) Agreement for Purchase and Sale of Joint Interest; Dissolution
of Joint Venture; and Continuation of Businesses by Acquiring Joint Ventures
dated effective October 1, 1994, by and between Big O Retail Enterprises, Inc.,
a Colorado corporation ("Seller") and C.S.B. Partnership, a California general
partnership ("Purchaser").
(27.1) Financial Data Schedule for Third Quarter, 1995.
b. Reports on Form 8-K
On July 25, 1995, as amended on July 27, 1995, the Company filed a Current
Report on Form 8-K/A announcing under Item 5 that on July 24, 1995, the Company
entered into an Agreement and Plan of Merger ("Merger Agreement") with BOTI
Holdings, Inc. and BOTI Acquisition Corp. The Merger Agreement provides that
BOTI Holdings, Inc., through its subsidiary BOTI Acquisition Corp., will acquire
the Company in a merger in which the Company's shareholders will receive a cash
price of $16.50 per share. The merger is subject to the approval of the
Company's stockholders.
The Company also reported that it amended the Rights Agreement dated August
26, 1994 between the Company and Interwest Co., Inc. to specifically exclude
from the definition of an "Acquiring Person", BOTI Holdings, Inc., BOTI
Acquisition Corp., an entity to be formed directly or indirectly by persons who
are currently franchisees of the Company, any other person who may be deemed to
be the beneficial owner of the Company's Common Stock because of the execution
and delivery of the Merger Agreement and any group consisting of two or more of
the foregoing.
The Company also filed under Item 7 of Form 8-K/A the Agreement and Plan of
Merger dated July 24, 1995 and the Amendment to Rights Agreement dated as of
July 24, 1995.
On August 17, 1995, the Company filed a Current Report on Form 8-K dated
August 17, 1995, announcing under Item 5 that on August 16, 1995, BOTI Holdings,
Inc. and BOTI Acquisition Corp. ("Purchaser") presented to the Investment
Committee of the Board of Directors evidence of financing commitments subject to
various contingencies, the fulfillment of which would occur in the future. The
Investment Committee reviewed and determined that the Acquisition Group's
financing commitments, in the aggregate, were for amounts sufficient to provide
funds to pay the merger consideration.
On September 5, 1995, the Company filed a Current Report on Form 8-K, dated
September 5, 1995, announcing that on August 31, 1995, the Company agreed to a
request made by the Purchaser to extend until October 2, 1995, the date on which
the Company or the Purchaser would be able to terminate the Merger Agreement if
prior to October 2, 1995, the Purchaser had not satisfied or waived the
contingency in the Merger Agreement that required participation in the
acquisition by the Company's dealers owning not less than 85% of the franchised
Big O Tire stores ("Dealer Participation Contingency"). As a part of the
agreement, the Purchaser agreed that the Company could delay incurring
additional expenditures with respect to its proxy statement until the Company
had been advised that the Dealer Participation Contingency had been satisfied or
waived, and the Company was satisfied that a fairness opinion would be received
by the participants in the Company's Employee Stock Ownership Plan in connection
with the proposed merger. The Company also filed under Item 7 of Form 8-K the
Letter Agreement dated August 31, 1995, by and among the Company, BOTI
Acquisition Corp., and BOTI Holdings, Inc.
On October 4, 1995, the Company filed a Current Report on Form 8-K dated
October 4, 1995, announcing under Item 5 that on October 2, 1995, the Company
agreed to a request made by the Purchaser to extend until October 16, 1995, the
date on which the Company or the Purchaser would be able to terminate the Merger
Agreement, if prior to October 16, 1995 the Purchaser Group had not satisfied or
waived the Dealer Participation Contingency. As part of the agreement, the
Purchaser agreed that the Company would agree to no further changes to Section
7.1(f) of the Merger Agreement and the Company could delay incurring additional
expenditures with respect to its proxy statement until the Company has been
advised that the Dealer Participation Contingency had been satisfied or waived.
The Company also filed under Item 7 of Form 8-K the Letter Agreement dated
October 2, 1995, by and among the Company, BOTI Acquisition Corp., and BOTI
Holdings, Inc.
On October 18, 1995, the Company filed a Current Report on Form 8-K dated
October 18, 1995, announcing that on October 15, 1995, the Company received
notice from the Purchaser that the Purchaser elected to waive the Dealer
Participation Contingency. The Purchaser advised the Company that dealers
owning 82% of the Company's franchised tire stores, as of the date of the Merger
Agreement, had elected to participate indirectly in the acquisition of the
Company. The Purchaser advised the Company that while 82% is less than the
percentage specified in the Merger Agreement, such percentage is sufficient to
enable the Purchaser to proceed with satisfying other conditions of closing in
the Merger Agreement. The Company also filed under Item 7 of Form 8-K the
Letter dated October 15, 1995, from BOTI Acquisition Corp. and BOTI Holdings,
Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: November 13, 1995
BIG O TIRES, INC.
By: /s/ John B. Adams
John B. Adams
Executive Vice President,
Principal Financial Officer
and Principal Accounting
Officer
<PAGE>
EXHIBIT INDEX
EXHIBIT
PAGE NO.
(10.1)
Agreement for Purchase and Sale of Joint
Interest; Dissolution of Joint Venture;
and Continuation of Businesses by
Acquiring Joint Ventures dated effective
October 1, 1994, by and between Big O
Retail Enterprises, Inc., a Colorado
corporation ("Seller") and C.S.B.
Partnership, a California general
partnership ("Purchaser").
18
(27.1)
Financial Data Schedule for Third Quarter,
1995.
69
