What we will Cover Today

• What is the issue of the have and have nots?

• How does it happen?

• What is the concern?

• Provide tools and strategies available to avoid/remedy the issue

What is the Issue?

• Some employees (typically longer term) accumulate significant stock balances, while newcomers have much smaller balances

• Very few shares available for allocation each year

• Newer employees may receive very few shares each year

• One group is highly motivated to protect and enhance account value

• They view employee ownership as something truly significant

• Other group has meager account balances and are unlikely to see any benefit in the ESOP

• They may view the ownership culture with disinterest and cynicism

• Employee ownership message may stop working • Could result in accelerated repurchase liability concerns