1
Exhibit 99.(b)(3)
===============================================================================
PROJECT THOROUGHBRED
==================
PROJECT COLT
AUGUST 26, 1997
MINNEAPOLIS CHICAGO MENLO PARK
222 South 9th Street One South Wacker Drive 2500 Sand Hill Road
Minneapolis, MN 55402 Chicago, IL 60606 Menlo Park, CA 94025-7016
(612) 342-6000 (312) 920-3132 (415) 233-2200
SEATTLE
1700 IBM Building
Seattle, WA 98101-3161
(206) 287-8700
===============================================================================
2
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- -------------------------------------------------------------------------------
==============================
TABLE OF CONTENTS
==============================
SECTIONS
--------
Thoroughbred - Corrected ................................ 1.
BLP Liquidation ......................................... 2.
WEBCO Transaction ....................................... 3.
Colt vs. Thoroughbred ................................... 4.
APPENDIX
--------
Sale Scenario (Arthur Andersen) ......................... A.
3
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- -------------------------------------------------------------------------------
===================================
THOROUGHBRED CORRECTED
===================================
4
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB BLP
====================== ==================== =================== ==================== ====================
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
-------------------- -------------------- -------------------- --------------------
Outsiders
- ----------------------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
-------------------- -------------------- -------------------- --------------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- ----------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 113,311.00 18.9259 13.00 13.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
-------------------- -------------------- -------------------- --------------------
1,687.00 1.3983 2,128.00 0.5506 113,312.00 18.9260 13.00 13.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.0000 0.0000
Best Lock Corp 0.0000 19,287.00 4.9906 148,925.00 24.8743 87.00 87.0000
Best Universal Lock 95,556.34 79.2060 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.0000 0.0000
Best Lock Partners 8,787.00 2.2737 204,053.00 34.0821 0.0000
-------------------- -------------------- -------------------- --------------------
Total 120,642.85 100.0000 386,469.00 100.0000 598,710.00 100.0000 100.00 100.0000
==================== ==================== ==================== ====================
====================
Version: 44.1
====================
Ownership
Page 1
Confidential
------------
Pre-BLP Liquidation
5
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ------------------------------------------------------------
BLC Dividend Paid 100.00
----------
Corporate Tax Exclusion 80%
Corporate Tax Rate 43%
Effective Tax Rate 9%
BLC Shareholders
============================================================
Shares Pct. Dividend
------------------------------
Outsiders
0.00 0.0000 0.00
4,365.00 3.6181 3.62
2,416.15 2.0027 2.00
100.00 0.0829 0.08
5,981.17 4.9577 4.96
------------------------------
12,862.32 10.6615 10.66
Insiders
1,686.00 1.3975 1.40
1.00 0.0008 0.00
------------------------------
1,687.00 1.3983 1.40
Stock Bonus Plan 10,537.19 8.7342 8.73
Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 95,556.34 79.2060 79.21
Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00
------------------------------
Total 120,642.85 100.0000 100.0000
- ------------------------------==============================
- ------------------------------------------------------------------------
BUL Dividend Rec'd (From BLC) 79.21
Administrative Expenses 1% 0.59
Taxable Income 78.61
Corporate Tax Exclusion 80%
Corporate Tax Rate 40%
Corporate Taxes Paid 6.29
BUL Dividend Paid 72.32
BUL Shareholders
========================================================================
Shares Pct. Dividend
------------------------------
Outsiders
6,798.00 1.7590 1.27
5,671.00 1.4674 1.06
0 0.0000 0.00
100.00 0.0259 0.02
16,436.00 4.2529 3.08
------------------------------
29,005.00 7.5051 5.43
Insiders
2,127.00 0.5504 0.40
1.00 0.0003 0.00
------------------------------
2,128.00 0.5506 0.40
Stock Bonus Plan 27,262.00 7.0541 5.10
Best Lock Corp 19,287.00 4.9906 3.61
Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 300,000.00 77.6259 56.14
Best Lock Partners 8,787.00 2.2737 1.64
------------------------------
Total 386,469.00 100.0000 72.32
- ------------------------------------------==============================
BLC & BUL Flows
Page 2
Confidential
------------
Pre-BLP Liquidation
6
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 56.14 BLP Dividends Rec'd (From FEB) 17.47
Administrative Expenses 1% 0.42 (From BUL) 1.64
----- ------
Taxable Income 55.72 19.12
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.04
------
Corporate Tax Rate 40% Taxable Income 19.08
Corporate Taxes Paid 4.46 Corporate Tax Exclusion 100%
----- Corporate Tax Rate 0%
FEB Dividend Paid 51.26 Corporate Taxes 0
===== -----
BLP Dividend Paid 19.08
FEB Shareholders BLP Shareholders =====
=================================================================== ===============================================================
Shares Pct. Dividend Shares Pct. Dividend
----------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 5.47 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 5.87 0.00 0.0000 0.00
------------------------------ --------------------------
132,420.00 22.1176 11.34 0.00 0.0000 0.00
Insiders Insiders
113,311.00 18.9259 9.70 13.00 13.0000 2.48
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ --------------------------
113,312.00 18.9260 9.70 13.00 13.0000 2.48
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 12.75 Best Lock Corp 87.00 87.0000 16.60
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 17.47 Best Lock Partners 0.00 0.0000 0.00
------------------------------ --------------------------
598,710.00 100.0000 51.26 100.00 100.0000 19.08
====================================================================================================================================
Confidential
------------
Pre-BLP Liquidation
FEB & BLP Flows
Page 3
7
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- --------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
======================= ===== ===== ===== ===== ===============
Outsiders
- -----------------------
Edward McLaughlin 0.00 1.27 0.00 0.00 1.27
Cede & Co. 3.62 1.06 5.47 0.00 10.15
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson & Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.08 5.87 0.00 13.90
----- ----- ----- ----- ---------------
10.66 5.43 11.34 0.00 27.43
Insiders
- -----------------------
Russell Best 1.40 0.40 9.70 2.48 13.98
Mariea Best 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ---------------
1.40 0.40 9.70 2.48 13.98
Stock Bonus Plan 8.73 5.10 0.00 0.00 13.84
Best Lock Corp 0.00 3.61 12.75 16.60 32.96
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ---------------
Sub-Total 20.79 14.54 33.79 19.08 88.20
Administrative Expenses 0.59 0.42 0.04 1.06
Corporate Taxes Paid 6.29 4.46 0 10.75
----- ----- ----- ----- ---------------
Total Payments 20.79 21.42 38.67 19.12 100.00
- -------------------------===== ===== ===== ===== ===============
Dividend Summary
Page 4
Confidential
------------
Pre-BLP Liquidation
8
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------
Initial % Initial % TOT
Cumulative Distribution Dividend Div Dividend
======================= ======== ========= ========
Outsiders
- ----------------------- ========================================================
Edward McLaughlin 1.27 1.27 1.82 Note:
Cede & Co. 10.15 10.15 14.53
Della & Co. 2.00 2.00 2.87 For Shareholders
Martin Nelson & Assoc. 0.10 0.10 0.15
All Other Outsiders 13.90 13.90 19.89 Where DIV is the initial dividend percent for each owner,
-------- --------- -------- and BLC is the dividend percent returned to BLC, and TR
27.43 27.43 39.25 is BLC's Effective Tax Rate TOT is the percent of
Insiders cumulative dividends received by each owner in a
- ----------------------- continuous payment loop
Russell Best 13.98 13.98 20.00 (2)
Mareia Best 0.00 0.00 0.00 TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +
-------- --------- -------- (3)
13.98 13.98 20.00 DIV((1-TR)*BLC) ...
or
TOT=DIV/(1-((1-TR)*BLC))
Stock Bonus Plan 13.84 13.84 19.80
For Corporate Taxes
Best Lock Corp 32.96 32.96 0.00 (2)
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +
Best Universal Lock 0.00 0.00 0.00 (3)
DIV((1-TR)*BLC) ...
Frank E. Best 0.00 0.00 0.00 (2)
+TR*BLC+TR*BLC((1-TR)*BLC)+TR*BLC((1-TR)*BLC) +
Best Lock Partners 0.00 0.00 0.00 (3)
-------- --------- -------- TR*BLC((1-TR)*BLC) ...
Sub-Total 88.20 88.20 79.05
or
Administrative Expenses 1.06 1.06 1.51 TOT=DIV/(1-((1-TR)*BLC)) + TR*BLC/(1-((1-TR)*BLC))
Corporate Taxes Paid 10.75 10.75 19.44 ========================================================
-------- --------- --------
Total 100.00 100.00 100.00
- ------------------------------======== ========= ========
Confidential
------------
Pre-BLP Liquidation
Cumulative Distribution
Page 5
9
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
BLC Operations Value 44,140,000
==============
Share Solutions % TOT Dividend Value Shares
======================= ============== ============= ==============================================
BLC BUL FEB BLP
----------------------------------------------
Outsiders
- -----------------------
Edward McLaughlin 1.82 803,591.18 0.00 6,798.00 0.00 0.00
Cede & Co. 14.53 6,413,011.00 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.87 1,265,064.40 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.15 64,179.68 100.00 100.00 0.00 0.00
All Other Outsiders 19.89 8,779,348.84 5,981.17 16,436.00 68,499.00 0.00
-------------- ------------- ----------------------------------------------
39.25 17,325,195.10 12,862.32 29,005.00 132,420.00 0.00
Insiders
- -----------------------
Russell Best 20.00 8,829,043.48 1,686.00 2,127.00 113,311.00 13.00
Mariea Best 0.00 695.88 1.00 1.00 1.00 0.00
-------------- ------------- ----------------------------------------------
20.00 8,829,739.37 1,687.00 2,128.00 113,312.00 13.00
Stock Bonus Plan 19.80 8,739,773.66 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 19,287.00 148,925.00 87.00
Best Universal Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 8,787.00 204,053.00 0.00
-------------- ------------- ----------------------------------------------
Sub-Total 79.05 34,894,708.12 120,642.85 386,469.00 598,710.00 100.00
==============================================
Administrative Expenses 1.51 666,666.67
Corporate Taxes Paid 19.44 8,578,625.20
Total 100.00 44,140,000.00
============== =============
Per Share Calculations:
======================= =====================
Value BLC BUL FEB BLP PER SHARE ENTITY
------------- ----------------------------------------------
Della & Co. 1,265,064.40 = 2,416.15 523.59 BLC
Edward McLaughlin 803,591.18 = 6,798.00 118.21 BUL A&B
Cede & Co. 6,413,011.00 = 4,365.00 5,671.00 63,921.00 0.00
= 2,285,456.66 670,368.57
= 2,955,825.23
3,457,185.77 = 54.09 FEB
Russell Best 8,829,043.48 = 1,686.00 2,127.00 113,311.00 13.00
= 882,767.45 251,432.54 6,128,458.20
= 7,262,658.19
1,566,385.29 = 120,491.18 BLP
- -----------------------------------------------------------------------------------------------------------------------------------
Share Solutions
Page 6
Confidential
------------
Pre-BLP Liquidation
10
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
BLC 523.59 BUL 118.21
======================== =========================
Shares Value Shares Value
------------------------ -------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 6,798.00 803,591.18
Cede & Co. 4,365.00 2,285,456.66 5,671.00 670,368.57
Della & Co. 2,416.15 1,265,064.40 0.00 0.00
Martin Nelson & Assoc. 100.00 52,358.69 100.00 11,820.99
All Other Outsiders 5,981.17 3,131,662.04 16,436.00 1,942,898.58
------------------------- -------------------------
12,862.32 6,734,541.78 29,005.00 3,428,679.33
Insiders
- ----------------------
Russell Best 1,686.00 882,767.45 2,127.00 251,432.54
Maria Best 1.00 523.59 1.00 118.21
------------------------- -------------------------
1,687.00 883,291.04 2,128.00 251,550.75
Stock Bonus Plan 10,537.19 5,517,134.26 27,262.00 3,222,639.40
Best Lock Corp 0.00 0.00 19,287.00 2,279,915.12
Best Universal Lock 95,556.34 50,032,044.34 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,462,982.18
Best Lock Partners 0.00 0.00 8,787.00 1,038,710.75
------------------------- -------------------------
0.00
Sub-Total 120,642.85 63,167,011.42 386,469.00 45,684,477.54
========== ==========
Administrative Expenses 375,003.53
Corporate Taxes Paid 1,790,287.73 3,972,563.26
------------- -------------
Total Outflows 64,957,299.15 50,032,044.34
============= =============
Less: Intercompany Flows
From BLC 50,032,044.34
From BUL 2,279,915.12
From FEB 8,054,651.68
From BLP 10,482,732.34
------------- -------------
20,817,299.15 50,032,044.34
Net Cash Flow 44,140,000.00 0.00
- ---------------------- ============= =============
- -------------------------------------------------------------------------------------------------
FEB 54.09 BLP 120,491.18 TOTAL VALUE
========================= ========================== ================
Shares Value Shares Value
------------------------- --------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 0.00 0.00 803,591.18
Cede & Co. 63,921.00 3,457,185.77 0.00 0.00 6,413,011.00
Della & Co. 0.00 0.00 0.00 0.00 1,265,064.40
Martin Nelson & Assoc. 0.00 0.00 0.00 0.00 64,179.68
All Other Outsiders 68,499.00 3,704,788.22 0.00 0.00 8,779,348.84
------------------------- -------------------------- ----------------
132,420.00 7,161,973.99 0.00 0.00 17,325,195.10
Insiders
- ----------------------
Russell Best 113,311.00 6,128,458.20 13.00 1,566,385.29 8,829,043.48
Maria Best 1.00 54.09 0.00 0.00 695.88
------------------------- -------------------------- ----------------
113,312.00 6,128,512.28 13.00 1,566,385.29 8,829,739.37
Stock Bonus Plan 0.00 0.00 0.00 0.00 8,739,773.66
Best Lock Corp 148,925.00 8,054,651.68 87.00 10,482,732.34 20,817,299.15
Best Universal Lock 0.00 0.00 0.00 0.00 50,032,044.34
Frank E. Best 0.00 0.00 0.00 0.00 35,462,982.18
Best Lock Partners 204,053.00 11,036,265.50 0.00 0.00 12,074,976.25
------------------------- -------------------------- ----------------
Sub-Total 598,710.00 32,381,403.45 100.00 12,049,117.63 153,282,010.04
========== ======
Administrative Expenses 265,804.52 25,858.62 666,666.67
Corporate Taxes Paid 2,815,774.21 0.00 8,578,625.20
------------- -------------- ----------------
Total Outflows 35,462,982.18 12,074,976.25 162,527,301.91
============= ============== ================
Less: Intercompany Flows
From BLC 50,032,044.34
From BUL 35,462,982.18 1,038,710.75 38,781,608.06
From FEB 11,036,265.50 19,090,917.18
From BLP 10,482,732.34
------------- ------------- ----------------
35,462,982.18 12,074,976.25 118,387,301.91
Net Cash Flow 0.00 0.00 44,140,000.00
- ---------------------- ============= ============= ================
Confidential
-------------------
Pre-BLP Liquidation
Shareholder Values
Page 7
11
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
Value of Insider Holdings
- --------------------------
Russell Best 8,829,043.48
Mariea Best 695.88
-------------
Total Insiders 8,829,739.37
Value of Outsider Holdings
- --------------------------
Edward McLaughlin 803,591.18
Cede & Co. 6,413,011.00
Della & Co. 1,265,064.40
Martin Nelson & Assoc. 64,179.68
All Other Outsiders 8,779,348.84
-------------
17,325,195.10
Stock Bonus Plan 8,739,773.66
-------------
Total Outsiders 26,064,968.76
====================================
Administrative Expenses 666,666.67 Note: Administrative Expenses
calculated as follows:
Corporate Taxes 8,578,625.20 BUL 35,000.00
------------- FEB 35,000.00
BLP 10,000.00
----------
Total Value 44,140,000.00 80,000.00
=============
Discount Rate: 17%
Inflation: 5%
Present Value: 666,666.67
- -------------------------------------------====================================
Value Summary
Page 8
Confidential
------------
Pre-BLP Liquidation
12
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------
BUL Adjustments
=========================================================================
BUL Price
Shares 118.21 % BUL Value
---------- ------------------------
BUL A 86,469 10,221,495 22.37%
BUL B 300,000 35,462,982 77.63%
---------- ------------------------
386,469 45,684,478 100.00%
BUL A Preference 0.57
Required Equity Return 0.21
PV BUL Preference 2.71
Adjustment Price Distributions % BUL Value
-----------------------------------------------
BUL A Adj 2.11 120.32 10,403,685 22.77%
BUL B Adj 0.61 117.60 35,280,793 77.23%
-----------------------
45,684,478 100.00%
- -------------------------------------------------------------------------
Adjustment for BUL A&B
Page 9
Confidential
------------
Pre-BLP Liquidation
13
PROJECT THOROUGHBRED
Long-Term Dividend Model
Piper Jaffray Inc.
- -----------------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB BLP
=======================================================================================================================
Shares Pct. Shares Pct. Pct. Adj. Shares Pct. Shares Pct.
Outsiders --------------------- ------------------------------- -------------------- -------------------
- --------------------
Edward McLaughlin 0.0000 6,798.00 1.7590 1.7904 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 1.4935 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0263 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 4.3287 68,499.00 11.4411 0.0000
--------------------- ------------------------------- -------------------- -------------------
12,862.32 10.6615 29,005.00 7.5051 7.6389 132,420.00 22.1176 0.0000
0.00 0.0000
Insiders
- ---------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 0.5602 113,311.00 18.9259 13.00 13.0000
Mariea Best 1.00 0.0008 1.00 0.0003 0.0003 1.00 0.0002 0.0000
--------------------- ------------------------------- -------------------- -------------------
1,687.00 1.3983 2,128.00 0.5506 0.5604 113,312.00 18.9260 13.00 13.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 7.1799 0.0000 0.0000
Best Lock Corp 0.0000 19,287.00 4.9906 5.0795 148,925.00 24.8743 87.00 87.0000
Best Universal Lock 95,556.34 79.2060 0.0000 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 77.2271 0.0000 0.0000
Best Lock Partners 8,787.00 2.2737 2.3142 204,053.00 34.0821 0.0000
--------------------- ------------------------------- -------------------- -------------------
Total 120,642.85 100.0000 386,469.00 100.0000 100.0000 598,710.00 100.0000 100.00 100.0000
===================== =============================== ==================== ===================
===================
Version: 44.1
===================
Confidential
------------
Pre-BLP Liquidation
Adjusted Ownership
Page 10
14
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 100.00 BUL Dividend Rec'd (From BLC) 79.21
========
Corporate Tax Exclusion 80% Administrative
Corporate Tax Rate 43% Expenses 1% 0.60
-----
Effective Tax Rate 9% Taxable Income 78.61
Corporate Tax
Exclusion 80%
Corporate Tax Rate 40%
Corporate Taxes Paid 6.29
-----
BUL Dividend Paid 72.32
=====
BUL Shareholders
BLC Shareholders
====================================================================================================================================
Shares Pct. Dividend Shares Adj. Pct. Dividend
============================== ================================
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7904 1.29
4,365.00 3.6181 3.62 5,671.00 1.4935 1.08
2,416.15 2.0027 2.00 0 0.0000 0.00
100.00 0.0829 0.08 100.00 0.0263 0.02
5,981.17 4.9577 4.96 16,436.00 4.3287 3.13
------------------------------ --------------------------------
12,862.32 10.6615 10.66 29,005.00 7.6389 5.52
Insiders Insiders
1,686.00 1.3975 1.40 2,127.00 0.5602 0.41
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ --------------------------------
1,687.00 1.3983 1.40 2,128.00 0.5604 0.41
Stock Bonus Plan 10,537.19 8.7342 8.73 Stock Bonus Plan 27,262.00 7.1799 5.19
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 19,287.00 5.0795 3.67
Best Universal Lock 95,556.34 79.2060 79.21 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.2271 55.85
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 8,787.00 2.3142 1.67
------------------------------ --------------------------------
Total 120,642.85 100.0000 100.0000 Total 386,469.00 100.0000 72.32
- ------------------------------------------------------------------------------------------------------------------------------------
Adjusted BLC & BUL Flows Confidential
------------
Page 11 Pre-BLP Liquidation
15
PROJECT THOROUGHBRED
Long-Term Dividend Model
Piper Jaffray Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 55.85 BLP Dividends Rec'd (From FEB) 17.38
Administrative Expenses 1% 0.42 (From BUL) 1.67
----- -----
Taxable Income 55.43 19.05
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.04
-----
Corporate Tax Rate 40% Taxable Income 19.01
Corporate Taxes Paid 4.43 Corporate Tax Exclusion 100%
-----
Corporate Tax Rate 0%
FEB Dividend Paid 51.00 Corporate Taxes 0
====== -----
BLP Dividend Paid 19.01
=====
FEB Shareholders BLP Shareholders
====================================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 5.44 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 5.83 0.00 0.0000 0.00
------------------------------ --------------------------
132,420.00 22.1176 11.28 0.00 0.0000 0.00
Insiders Insiders
113,311.00 18.9259 9.65 13.00 13.0000 2.47
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ --------------------------
113,312.00 18.9260 9.65 13.00 13.0000 2.47
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 12.69 Best Lock Corp 87.00 87.0000 16.54
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 17.38 Best Lock Partners 0.00 0.0000 0.00
------------------------------ ---------------------------
598,710.00 100.0000 51.00 100.00 100.0000 19.01
============================== ===========================
- ------------------------------------------------------------------------------------------------------------------------------------
Adjusted FEB & BLP Flows
Page 12
Confidential
------------
Pre-BLP Liquidation
16
PROJECT THOROUGHBRED
Long-Term Dividend Model
- -----------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
=================== ====== ====== ====== ====== ===============
Outsiders
- -------------------
Edward McLaughlin 0.00 1.29 0.00 0.00 1.29
Cede & Co. 3.62 1.08 5.44 0.00 10.14
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson &
Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.13 5.83 0.00 13.92
------ ------ ------ ------ ---------------
10.66 5.52 11.28 0.00 27.47
Insiders
- -------------------
Russell Best 1.40 0.41 9.65 2.47 13.93
Mariea Best 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ---------------
1.40 0.41 9.65 2.47 13.93
Stock Bonus Plan 8.73 5.19 0.00 0.00 13.93
Best Lock Corp 0.00 3.67 12.69 16.54 32.90
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ---------------
Sub-Total 20.79 14.80 33.62 19.01 88.22
Administrative
Expenses 0.60 0.42 0.04 1.06
Corporate Taxes Paid 6.29 4.43 0 10.72
------ ------ ------ ------ ---------------
Total Payments 20.79 21.68 38.47 19.05 100.00
====== ====== ====== ====== ===============
- -----------------------------------------------------------------
Adjusted Dividend Summary
Page 13
Confidential
------------
Pre-BLP Liquidation
17
PROJECT THOROUGHBRED
Long-Term Dividend Model
Piper Jaffray Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Cumulative Distribution Initial Dividend % Initial Div % TOT Dividend
======================== ================ ============= ==============
Outsiders
- ------------------------ =========================================================
Edward McLaughlin 1.29 1.29 1.85 Note:
Cede & Co. 10.14 10.14 14.50
Della & Co. 2.00 2.00 2.86 For Shareholders
Martin Nelson & Assoc. 0.10 0.10 0.15 Where DIV is the initial dividend percent for each owner,
All Other Outsiders 13.92 13.92 19.91 and BLC is the dividend percent returned to BLC,
---------------- ------------- -------------- and TR is BLC's Effective Tax Rate
27.47 27.47 39.28 TOT is the percent of cumulative dividends received by
Insiders each owner in a continuous payment loop
- ------------------------
Russell Best 13.93 13.93 19.91
Mareia Best 0.00 0.00 0.00
---------------- ------------- -------------- (2)
13.93 13.93 19.92 TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)
(3)
*BLC) ...
Stock Bonus Plan 13.93 13.93 19.92 or
TOT=DIV/(1-((1-TR)*BLC))
Best Lock Corp 32.90 32.90 0.00
For Corporate Taxes
Best Universal Lock 0.00 0.00 0.00 (2)
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)
(3)
*BLC) ... (2)
Frank E. Best 0.00 0.00 0.00 +TR*BLC+TR*BLC((1-TR)*BLC)+TR*BLC((1-TR)*BLC) +TR*BLC
(3)
Best Lock Partners 0.00 0.00 0.00 ((1-TR)*BLC) ...
---------------- -------------- -------------- or
Sub-Total 88.22 88.22 79.11 TOT=DIV/(1-((1-TR)*BLC)) + TR*BLC/(1-((1-TR)*BLC))
Administrative Expenses 1.06 1.06 1.51 ==========================================================
Corporate Taxes Paid 10.72 10.72 19.38
---------------- -------------- --------------
Total 100.00 100.00 100.00
================ ============== ==============
- ------------------------------------------------------------------------------------------------------------------------------------
Adj. Cumulative Distribution
Page 14
Confidential
------------
Pre-BLP Liquidation
18
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------
===============
BLC Operations Value 44,140,000
==============
Share Solutions % TOT Dividend Value Shares
======================= ============== ============= ==============================================
BLC BUL FEB BLP
----------------------------------------------
Outsiders
- -----------------------
Edward McLaughlin 1.85 817,307.59 0.00 6,798.00 0.00 0.00
Cede & Co. 14.50 6,402,419.13 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.86 1,264,153.48 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.15 64,343.75 100.00 100.00 0.00 0.00
All Other Outsiders 19.91 8,788,408.11 5,981.17 16,436.00 68,499.00 0.00
-------------- ------------- ----------------------------------------------
39.28 17,336,632.07 12,862.32 29,005.00 132,420.00 0.00
Insiders
- -----------------------
Russell Best 19.91 8,790,404.22 1,686.00 2,127.00 113,311.00 13.00
Mariea Best 0.00 697.20 1.00 1.00 1.00 0.00
-------------- ------------- ----------------------------------------------
19.92 8,791,101.42 1,687.00 2,128.00 113,312.00 13.00
Stock Bonus Plan 19.92 8,790,807.90 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 19,287.00 148,925.00 87.00
Best Universal Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 8,787.00 204,053.00 0.00
-------------- ------------- ----------------------------------------------
Sub-Total 79.11 34,918,541.39 120,642.85 386,469.00 598,710.00 100.00
==============================================
Administrative Expenses 1.51 666,666.67
Corporate Taxes Paid 19.38 8,554,791.94
-------------- -------------
Total 100.00 44,140,000.00
============== =============
Per Share Calculations:
======================= Value BLC BUL FEB BLP
------------- ----------------------------------------------
Della & Co. 1,264,153.48 = 2,416.15
Edward McLaughlin 817,307.59 = 6,798.00
Cede & Co. 6,402,419.13 = 4,365.00 5,671.00 63,921.00 0.00
= 2,283,811.00 681,811.02
= 2,965,622.02
3,436,797.11 =
Russell Best 8,790,404.22 = 1,686.00 2,127.00 113,311.00 13.00
= 882,131.81 255,724.22 6,092,315.79
= 7,230,171.81
1,560,232.40 =
- -----------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------
Per Share Calculations: ==========================
======================= PER SHARE ENTITY
Della & Co. 523.21 BLC
Edward McLaughlin 120.23 BUL A BUL A 86,469 10,395,965 22.77%
117.52 BUL B BUL B 300,000 35,254,615 77.23%
---------- -----------------------
Cede & Co. 2.71 46,650,579 100.00%
53.77 FEB
Russell Best
120,017.88 BLP
- -------------------------------------------------------------------------------
Adjusted Share Solutions
Page 15
Confidential
------------
Pre - BLP Liquidation
19
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
BUL A 120.23
BLC 523.21 BUL B 117.52
========================= =========================
Shares Value Shares Value
------------------------- -------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 6,798.00 817,307.59
Cede & Co. 4,365.00 2,283,811.00 5,671.00 681,811.02
Della & Co. 2,416.15 1,264,153.48 0.00 0.00
Martin Nelson & Assoc. 100.00 52,320.99 100.00 12,022.77
All Other Outsiders 5,981.17 3,129,407.07 16,436.00 1,976,061.71
------------------------- -------------------------
12,862.32 6,729,692.53 29,005.00 3,487,203.09
Insiders
- ----------------------
Russell Best 1,686.00 882,131.81 2,127.00 255,724.22
Maria Best 1.00 523.21 1.00 120.23
------------------------- -------------------------
1,687.00 882,655.02 2,128.00 255,844.45
Stock Bonus Plan 10,537.19 5,513,161.61 27,262.00 3,277,646.29
Best Lock Corp 0.00 0.00 19,287.00 2,318,830.75
Best Universal Lock 95,556.34 49,996,018.43 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,254,614.53
Best Lock Partners 0.00 0.00 8,787.00 1,056,440.39
------------------------- -------------------------
0.00
Sub-Total 120,642.85 63,121,527.60 386,469.00 45,650,579.50
========== ==========
Administrative Expenses 375,823.33
Corporate Taxes Paid 1,786,008.07 3,969,615.61
------------- -------------
Total Outflows 64,907,535.66 49,996,018.43
============= =============
Less: Intercompany Flows
From BLC 49,996,018.43
From BUL 2,318,830.75
From FEB 8,007,149.60
From BLP 10,441,555.31
------------- -------------
20,767,535.66 49,996,018.43
Net Cash Flow 44,140,000.00 (0.00)
============= =============
- ------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
FEB 53.77 BLP 120,017,88 TOTAL VALUE
========================= ========================= ===================
Shares Value Shares Value
------------------------- -------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 0.00 0.00 817,307.59
Cede & Co. 63,921.00 3,436,797.11 0.00 0.00 6,402,419.13
Della & Co. 0.00 0.00 0.00 0.00 1,264,153.48
Martin Nelson & Assoc. 0.00 0.00 0.00 0.00 64,343.75
All Other Outsiders 68,499.00 3,682,939.34 0.00 0.00 8,788,408.11
------------------------- ------------------------- -------------------
132,420.00 7,119,736.45 0.00 0.00 17,336,632.07
Insiders
- ----------------------
Russell Best 113,311.00 6,092,315.79 13.00 1,560,232.40 8,790,404.22
Maria Best 1.00 53.77 0.00 0.00 697.20
------------------------- ------------------------- -------------------
113,312.00 6,092,369.55 13.00 1,560,232.40 8,791,101.42
Stock Bonus Plan 0.00 0.00 0.00 0.00 8,790,807.90
Best Lock Corp 148,925.00 8,007,149.60 87.00 10,441,555.31 20,767,535.66
Best Universal Lock 0.00 0.00 0.00 0.00 49,996,018.43
Frank E. Best 0.00 0.00 0.00 0.00 35,254,614.53
Best Lock Partners 204,053.00 10,971,179.44 0.00 0.00 12,027,619.83
------------------------- ------------------------- -------------------
Sub-Total 598,710.00 32,190,435.03 100.00 12,001,787.71 152,964,329.84
========== ==========
Administrative Expenses 265,011.23 25,832.11 666,666.67
Corporate Taxes Paid 2,799,168.26 0.00 8,554,791.94
------------- ------------- -------------------
Total Outflows 35,254,614.53 12,027,619.83 162,185,788.45
============= ============= ===================
Less: Intercompany Flows
From BLC 49,996,018.43
From BUL 35,254,614.53 1,056,440.39 38,629,885.67
From FEB 10,971,179.44 18,978,329.04
From BLP 10,441,555.31
------------- ------------- -------------------
35,254,614.53 12,027,619.83 118,045,788.45
Net Cash Flow 0.00 0.00 44,140,000.00
============= ================= ==================
- ---------------------------------------------------------------------------------------------------
Adjusted Shareholder Values
Page 16
Confidential
------------
Pre-BLP Liquidation
20
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------
Value of Insider Holdings
- --------------------------
Russell Best 8,790,404.22
Mariea Best 697.20
-------------
Total Insiders 8,791,101.42
Value of Outsider Holdings
- --------------------------
Edward McLaughlin 817,307.59
Cede & Co. 6,402,419.13
Della & Co. 1,264,153.48
Martin Nelson & Assoc. 64,343.75
All Other Outsiders 8,788,408.11
-------------
17,336,632.07
Stock Bonus Plan 8,790,807.90
-------------
Total Outsiders 26,127,439.97
Administrative Expenses 666,666.67
Corporate Taxes 8,554,791.94
-------------
Total Value 44,140,000.00
- ----------------------------=============
Confidential
------------
Pre-BLP Liquidation
Adjusted Value Summary
Page 17
21
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-term Dividend Model
- --------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Rec'd 32.96 BUL Dividend Rec'd (From BLC) 23.86
Corporate Tax Exclusion 80% Administrative Expenses 1% 0.18
Corporate Tax Rate 43% ----------
Corporate Taxes Paid 2.83 Taxable Income 23.68
-------- Corporate Tax Exclusion 80%
Corporate Tax Rate 40%
BLC Dividend Paid 30.12 Corporate Taxes Paid 1.89
======== ----------
BUL Dividend Paid 21.79
==========
BLC Shareholders BUL Shareholders
======================================================= =======================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.38
4,365.00 3.6181 1.09 5,671.00 1.4674 0.32
2,416.15 2.0027 0.60 0.00 0.0000 0.00
100.00 0.0829 0.02 100.00 0.0259 0.01
5,981.17 4.9577 1.49 16,436.00 4.2529 0.93
------------------------------ ------------------------------
12,862.32 10.6615 3.21 29,005.00 7.5051 1.63
Insiders Insiders
1,686.00 1.3975 0.42 2,127.00 0.5504 0.12
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ------------------------------
1,687.00 1.3983 0.42 2,128.00 0.5506 0.12
Stock Bonus Plan 10,537.19 8.7342 2.63 Stock Bonus Plan 27,262.00 7.0541 1.54
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 19,287.00 4.9906 1.09
Best Universal Lock 95,556.34 79.2060 23.86 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 16.91
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 8,787.00 2.2737 0.50
------------------------------ ------------------------------
Total 120,642.85 100.0000 30.12 Total 386,469.00 100.0000 21.79
- -------------------------============================== -----------------------------------------==============================
BLC & BUL Round 2
Page 18
Confidential
-------------
Pre-BLP Liquidation
22
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 16.91 BLP Dividends Rec'd (From FEB) 5.26
Administrative Expenses 1% 0.13 (From BUL) 0.50
-------- --------
Taxable Income 16.78 5.76
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.01
Corporate Tax Rate 40% --------
Corporate Taxes Paid 1.34 Taxable Income 5.75
-------- Corporate Tax Exclusion 100%
FEB Dividend Paid 15.44 Corporate Tax Rate 0%
======== Corporate Taxes 0
BLP Dividend Paid 5.75
========
FEB Shareholders BLP Shareholders
===================================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ----------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 1.65 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 1.77 0.00 0.0000 0.00
------------------------------ ----------------------------
132,420.00 22.1176 3.42 0.00 0.0000 0.00
Insiders Insiders
113,311.00 18.9259 2.92 13.00 13.0000 0.75
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ ----------------------------
113,312.00 18.9260 2.92 13.00 13.0000 0.75
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 3.84 Best Lock Corp 87.00 87.0000 5.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 5.26 Best Lock Partners 0.00 0.0000 0.00
------------------------------ ----------------------------
598,710.00 100.0000 15.44 100.00 100.0000 5.75
- ------------------------------------============================== -----------------------------------============================
FEB & BLP Round 2
Page 19
Confidential
------------
Pre-BLP Liquidation
23
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
==== ==== ==== ==== ===============
Outsiders
0.00 0.38 0.00 0.00 0.38
1.09 0.32 1.65 0.00 3.06
0.60 0.00 0.00 0.00 0.60
0.02 0.01 0.00 0.00 0.03
1.49 0.93 1.77 0.00 4.19
---- ---- ---- ---- ----
3.21 1.63 3.42 0.00 8.26
Insiders
0.42 0.12 2.92 0.75 4.21
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
0.42 0.12 2.92 0.75 4.21
Stock Bonus Plan 2.63 1.54 0.00 0.00 4.17
Best Lock Corp 0.00 1.09 3.84 5.00 9.93
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
Sub-Total 6.26 4.38 10.18 5.75 26.57
Administrative Expenses 0.18 0.13 0.01 0.32
Corporate Taxes Paid 2.83 1.89 1.34 0 6.07
---- ---- ---- ---- ----
Total Payments 9.10 6.45 11.65 5.76 32.96
- -------------------------==== ==== ===== ==== ===============
Dividend Summary Round 2
Page 20
Confidential
------------
Pre-BLP Liquidation
24
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 9.93 BUL Dividend Rec'd (From BLC) 7.19
Administrative Expenses 1% 0.05
----------
Corporate Tax Exclusion 80% Taxable Income 7.13
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.85 Corporate Tax Rate 40%
-------- Corporate Taxes Paid 0.57
BLC Dividend Paid 9.07 ----------
======== BUL Dividend Paid 6.56
==========
BLC Shareholders BUL Shareholders
======================================================= ==========================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ---------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.12
4,365.00 3.6181 0.33 5,671.00 1.4674 0.10
2,416.15 2.0027 0.18 0.00 0.0000 0.00
100.00 0.0829 0.01 100.00 0.0259 0.00
5,981.17 4.9577 0.45 16,436.00 4.2529 0.28
------------------------------ ------------------------------
12,862.32 10.6615 0.97 29,005.00 7.5051 0.49
Insiders Insiders
1,686.00 1.3975 0.13 2,127.00 0.5504 0.04
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ------------------------------
1,687.00 1.3983 0.13 2,128.00 0.5506 0.04
Stock Bonus Plan 10,537.19 8.7342 0.79 Stock Bonus Plan 27,262.00 7.0541 0.46
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 19,287.00 4.9906 0.33
Best Universal Lock 95,556.34 79.2060 7.19 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 5.09
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 8,787.00 2.2737 0.15
------------------------------ ------------------------------
Total 120,642.85 100.0000 9.07 Total 386,469.00 100.0000 6.56
- -------------------------============================== -----------------------------------------=================================
BLC & BUL Round 3
Page 21
Confidential
------------
Pre-BLP Liquidation
25
\
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 5.09 BLP Dividends Rec'd (From FEB) 1.59
Administrative Expenses 1% 0.04 (From BUL) 0.15
-------- --------
Taxable Income 5.06 1.73
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% --------
Corporate Taxes Paid 0.40 Taxable Income 1.73
-------- Corporate Tax Exclusion 100%
FEB Dividend Paid 4.65 Corporate Tax Rate 0%
======== Corporate Taxes 0
BLP Dividend Paid 1.73
========
FEB Shareholders BLP Shareholders
===================================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ----------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.50 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.53 0.00 0.0000 0.00
------------------------------ --------------------------
132,420.00 22.1176 1.03 0.00 0.0000 0.00
Insiders
113,311.00 18.9259 0.88 13.00 13.0000 0.22
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ --------------------------
113,312.00 18.9260 0.88 13.00 13.0000 0.22
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 1.16 87.00 87.0000 1.51
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 1.59 0.00 0.0000 0.00
------------------------------ --------------------------
598,710.00 100.0000 4.65 100.00 100.0000 1.73
- ------------------------------------============================== -----------------------------------============================
FEB & BLP Round 3
Page 22
Confidential
------------
Pre-BLP Liquidation
26
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
===== ==== ==== ==== ===============
Outsiders
0.00 0.12 0.00 0.00 0.12
0.33 0.10 0.50 0.00 0.92
0.18 0.00 0.00 0.00 0.18
0.01 0.00 0.00 0.00 0.01
0.45 0.28 0.53 0.00 1.26
---- ---- ---- ---- ----
0.97 0.49 1.03 0.00 2.49
Insiders
0.13 0.04 0.88 0.22 1.27
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
0.13 0.04 0.88 0.22 1.27
Stock Bonus Plan 0.79 0.46 0.00 0.00 1.26
Best Lock Corp 0.00 0.33 1.16 1.51 2.99
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
Sub-Total 1.89 1.32 3.07 1.73 8.00
Administrative Expenses 0.05 0.04 0.00 0.10
Corporate Taxes Paid 0.85 0.57 0.40 0 1.83
---- ---- ---- ---- ----
Total Payments 2.74 1.94 3.51 1.73 9.93
- -------------------------==== ==== ==== ==== ===============
Dividend Summary Road
Page 23
Confidential
------------
Pre-BLP Liquidaiton
27
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 2.99 BUL Dividend Rec'd (From BLC) 2.16
Administrative Expenses 1% 0.02
----------
Corporate Tax Exclusion 80% Taxable Income 2.15
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.26 Corporate Tax Rate 40%
-------- Corporate Taxes Paid 0.17
BLC Dividend Paid 2.73 ----------
======== BUL Dividend Paid 1.98
==========
BLC Shareholders BUL Shareholders
======================================================= ==========================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ---------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.03
4,365.00 3.6181 0.10 5,671.00 1.4674 0.03
2,416.15 2.0027 0.05 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.14 16,436.00 4.2529 0.08
------------------------------ ------------------------------
12,862.32 10.6615 0.29 29,005.00 7.5051 0.15
Insiders Insiders
1,686.00 1.3975 0.04 2,127.00 0.5504 0.01
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ------------------------------
1,687.00 1.3983 0.04 2,128.00 0.5506 0.01
Stock Bonus Plan 10,537.19 8.7342 0.24 Stock Bonus Plan 27,262.00 7.0541 0.14
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 19,287.00 4.9906 0.10
Best Universal Lock 95,556.34 79.2060 2.16 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 1.53
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 8,787.00 2.2737 0.04
------------------------------ ------------------------------
Total 120,642.85 100.0000 2.73 Total 386,469.00 100.0000 1.98
- -------------------------============================== -----------------------------------------==============================
BLC & BUL Round 4
Page 24
Confidential
------------
Pre-BLP Liquidation
28
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 1.53 BLP Dividends Rec'd (From FEB) 0.48
Administrative Expenses 1% 0.01 (From BUL) 0.04
-------- --------
Taxable Income 1.52 0.52
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% --------
Corporate Taxes Paid 0.12 Taxable Income 0.52
-------- Corporate Tax Exclusion 100%
Corporate Tax Rate 0%
FEB Dividend Paid 1.40 Corporate Taxes 0
======== BLP Dividend Paid 0.52
========
FEB Shareholders BLP Shareholders
================================================================== ===============================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ----------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.15 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.16 0.00 0.0000 0.00
------------------------------ --------------------------
132,420.00 22.1176 0.31 0.00 0.0000 0.00
Insiders
113,311.00 18.9259 0.27 13.00 13.0000 0.07
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ --------------------------
113,312.00 18.9260 0.27 13.00 13.0000 0.07
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 0.35 87.00 87.0000 0.45
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 0.48 0.00 0.0000 0.00
------------------------------ --------------------------
598,710.00 100.0000 1.40 100.00 100.0000 0.52
- ------------------------------------============================== -----------------------------------============================
FEB & BLP Round 4
Page 25
Confidential
------------
Pre-BLP Liquidation
29
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
==== ==== ==== ==== ===============
Outsiders
0.00 0.03 0.00 0.00 0.03
0.10 0.03 0.15 0.00 0.28
0.05 0.00 0.00 0.00 0.05
0.00 0.00 0.00 0.00 0.00
0.14 0.08 0.16 0.00 0.38
---- ---- ---- ---- ---------------
0.29 0.15 0.31 0.00 0.75
Insiders
0.04 0.01 0.27 0.07 0.38
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ---------------
0.04 0.01 0.27 0.07 0.38
Stock Bonus Plan 0.24 0.14 0.00 0.00 0.38
Best Lock Corp 0.00 0.10 0.35 0.45 0.90
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ---------------
Sub-Total 0.57 0.40 0.92 0.52 2.41
Administrative Expenses 0.02 0.01 0.00 0.03
Corporate Taxes Paid 0.26 0.17 0.12 0 0.55
---- ---- ---- ---- ---------------
Total Payments 0.83 0.59 1.06 0.52 2.99
- -------------------------==== ==== ==== ==== ===============
Dividend Summary Round 4
Page 26
Confidential
------------
Pre-BLP Liquidation
30
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 0.90 BUL Dividend Rec (From BLC) 0.65
Administrative Expenses 1% 0.00
----------
Corporate Tax Exclusion 80% Taxable Income 0.65
Corporate Tex Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.08 Corporate Tex Rate 40%
-------- Corporate Taxes Paid 0.05
BLC Dividend Paid 0.82 ----------
======== BUL Dividend Paid 0.60
==========
BLC Shareholders BUL Shareholders
======================================================= ==========================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ---------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.01
4,365.00 3.6181 0.03 5,671.00 1.4674 0.01
2,416.15 2.0027 0.02 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.04 16,436.00 4.2529 0.03
------------------------------ ------------------------------
12,862.32 10.6615 0.09 29,005.00 7.5051 0.04
Insiders Insiders
1,686.00 1.3975 0.01 2,127.00 0.5504 0.00
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ------------------------------
1,687.00 1.3983 0.01 2,128.00 0.5506 0.00
Stock Bonus Plan 10,537.19 8.7342 0.07 Stock Bonus Plan 27,262.00 7.0541 0.04
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 19,287.00 4.9906 0.03
Best Universal Lock 95,556.34 79.2060 0.65 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 0.46
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 8,787.00 2.2737 0.01
------------------------------ ------------------------------
Total 120,642.85 100.0000 0.82 Total 386,469.00 100.0000 0.60
- -------------------------============================== -----------------------------------------=================================
BLC & BUL Round 5 Confidential
Page 27 -------------------
Pre-BLP Liquidation
31
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec' (From BUL) 0.46 BLP Dividends Rec' (From FEB) 0.14
Administrative Expenses 1% 0.00 (From BUL) 0.01
-------- --------
Taxable Income 0.46 0.16
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% --------
Corporate Taxes Paid 0.04 Taxable Income 0.16
-------- Corporate Tax Exclusion 100%
Corporate Tax Rate 0%
FEB Dividend Paid 0.42 Corporate Taxes 0
======== BLP Dividend Paid 0.16
========
FEB Shareholders BLP Shareholders
================================================================== ===============================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------ ----------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.05 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.05 0.00 0.0000 0.00
------------------------------ --------------------------
132,420.00 22.1176 0.09 0.00 0.0000 0.00
Insiders
113,311.00 18.9259 0.08 13.00 13.0000 0.02
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ --------------------------
113,312.00 18.9260 0.08 13.00 13.0000 0.02
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 148,925.00 24.8743 0.10 87.00 87.0000 0.14
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 204,053.00 34.0821 0.14 0.00 0.0000 0.00
------------------------------ --------------------------
598,710.00 100.0000 0.42 100.00 100.0000 0.16
- ------------------------------------============================== -----------------------------------============================
FEB & BLP Round 5 Confidential
Page 28 ------------
Pre-BLP Liquidation
32
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
==== ==== ==== ==== ===============
Outsiders
0.00 0.01 0.00 0.00 0.01
0.03 0.01 0.05 0.00 0.08
0.02 0.00 0.00 0.00 0.02
0.00 0.00 0.00 0.00 0.00
0.04 0.03 0.00 0.07
---- ---- ---- ---- ----
0.09 0.04 0.09 0.00 0.23
Insiders
0.01 0.00 0.08 0.02 0.12
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
0.01 0.00 0.08 0.02 0.12
Stock Bonus Plan 0.07 0.04 0.00 0.00 0.11
Best Lock Corp 0.00 0.03 0.10 0.14 0.27
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----
Sub-Total 0.17 0.12 0.28 0.16 0.73
Administrative Expenses 0.00 0.00 0.00 0.01
Corporate Taxes Paid 0.08 0.05 0.04 0 0.17
---- ---- ---- ---- ----
Total Payments 0.25 0.18 0.32 0.16 0.90
- -------------------------==== ==== ==== ==== ===============
Dividend Summary Round 5 Confidential
Page 29 -------------------
Pre-BLP Liquidation
33
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------------------
Value Distribution Round One Round Two Round Three Round Four Round Five %Value
========= ========= =========== ========== ========== ========
Outsiders
1.27 0.38 0.12 0.03 0.01 1.82
10.15 3.06 0.92 0.28 0.08 14.49
2.00 0.60 0.18 0.05 0.02 2.86
0.10 0.03 0.01 0.00 0.00 0.15
13.90 4.19 1.26 0.38 0.07 19.79
------ ----- ---- ---- ----- -------
27.43 8.26 2.49 0.75 0.23 39.15
Insiders
13.98 4.21 1.27 0.38 0.12 19.95
0.00 0.00 0.00 0.00 0.00 0.00
------ ----- ---- ---- ----- -------
13.98 4.21 1.27 0.38 0.12 19.95
Stock Bonus Plan 13.84 4.17 1.26 0.38 0.11 19.75
Best Lock Corp 32.96 9.93 2.99 0.90 0.27 0.27
Best Universal Lock 0.00 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------ ----- ---- ---- ----- -------
Sub-Total 88.20 26.57 8.00 2.41 0.73 79.13
Administrative Expenses 1.06 0.32 0.10 0.03 0.01 1.51
Corporate Taxes Paid 10.75 6.07 1.83 0.55 0.17 19.36
------ ----- ---- ---- ----- -------
Total 100.00 32.96 9.93 2.99 0.90 100.00
- ----------------------------====== ===== ==== ==== ===== =======
Exercise Summary
Page 30
Confidential
------------
Pre-BLP Liquidation
34
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- --------------------------------------------------------------------------------
===================================
BLP LIQUIDATION
===================================
35
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB BLP
====================== =================== =================== =================== ===================
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
------------------- ------------------- ------------------- -------------------
Outsiders
- ----------------------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
------------------- ------------------ ------------------- -------------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- ----------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 113,311.00 18.9259 13.00 13.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
------------------- ------------------ ------------------- -------------------
1,687.00 1.3983 2,128.00 0.5506 113,312.00 18.9260 13.00 13.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.0000 0.0000
Best Lock Corp 0.0000 19,287.00 4.9906 148,925.00 24.8743 87.00 87.0000
Best Univeral Lock 95,556.34 79.2060 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.0000 0.0000
Best Lock Partners 8,787.00 2.2737 204,053.00 34.0821 0.0000
------------------- ------------------ ------------------- -------------------
Total 120,642.85 100.0000 386,469.00 100.0000 598,710.00 100.0000 100.00 100.0000
==================== =================== =================== ===================
Version: 44.1
- ------------------------------------------------------------------------------------------------------------------------
Ownership
Page 1
Confidential
------------
BLP Liquidation Scenario
36
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------
BLP Holdings
===============================================================
Shares Per Share Value
-----------------------------------------------
BUL A 8,787.00 120.23 1,056,440.39
FEB 204,053.00 53.77 10,971,179.44
-------------
12,027,619.83
Divest to BLC
- ---------------------------------------------------------------
BUL A 8,787.00 120.23 1,056,440.39
FEB 170,394.00 53.77 9,161,458.78
-------------
10,217,899.17 84.95%
Divest To RCB/WEBCO
- ---------------------------------------------------------------
BUL A 0.00 120.23 0.00
FEB 33,659.00 53.77 1,809,720.65
-------------
1,809,720.65 15.05%
- ---------------------------------------------------------------
BLP Liquidation
Page 2
Confidential
------------
BLP Liquidation Scenario
37
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB BLP
================= ==================== ==================== ==================== ====================
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
-------------------- -------------------- -------------------- --------------------
Outsiders
- ---------------------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
-------------------- -------------------- -------------------- ---------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- ---------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 146,970.00 24.5478 0.00 0.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
-------------------- -------------------- -------------------- ---------------
1,687.00 1.3983 2,128.00 0.5506 146,971.00 24.5479 0.00 0.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.0000 0.0000
Best Lock Corp 0.0000 28,074.00 7.2642 319,319.00 53.3345 0.00 0.0000
Best Univeral Lock 95,556.34 79.2060 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.0000 0.0000
Best Lock Partners 0.00 0.0000 0.00 0.0000 0.0000
-------------------- -------------------- -------------------- ---------------
Total 120,642.85 100.0000 386,469.00 100.0000 598.710.00 100.0000 0.00 0.0000
==================== ==================== ==================== ===============
Version: 44.1
- -----------------------------------------------------------------------------------------------------------------------------
Ownership with BLP Liquidation
Page 3
Confidential
------------
BLP Liquidation Scenario
38
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- --------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 100.00 BUL Dividend Rec'd (From BLC) 79.21
========== Administrative Expenses 1% 0.54
Corporate Tax Exclusion 80% ----------
Corporate Tax Rate 43% Taxable Income 78.66
Effective Tax Rate 9% Corporate Tax Exclusion 80%
Corporate Tax Rate 40%
Corporate Taxes Paid 6.29
----------
BUL Dividend Paid 72.37
==========
BLC Shareholders BUL Shareholders
=========================================================== =================================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------- -----------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 1.27
4,365.00 3.6181 3.62 5,671.00 1.4674 1.06
2,416.15 2.0027 2.00 0.00 0.0000 0.00
100.00 0.0829 0.08 100.00 0.0259 0.02
5,981.17 4.9577 4.96 16,436.00 4.2529 3.08
------------------------------ ----------------------------
12,862.32 10.6615 10.66 29,005.00 7.5051 5.43
Insiders Insiders
1,686.00 1.3975 1.40 2,127.00 0.5504 0.40
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ----------------------------
1,687.00 1.3983 1.40 2,128.00 0.5506 0.40
Stock Bonus Plan 10,537.19 8.7342 8.73 Stock Bonus Plan 27,262.00 7.0541 5.11
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 5.26
Best Univeral Lock 95,556.34 79.2060 79.21 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 56.18
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
------------------------------ ----------------------------
Total 120,642.85 100.0000 100.0000 Total 386,469.00 100.0000 72.37
- ----------------------------============================== ------------------------------------============================
BLC & BUL Flows
Page 4
Confidential
------------
BLP Liquidation Scenario
39
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 56.18 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.38 (From BUL) 0.00
-------- ------
Taxable Income 55.79 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% ------
Corporate Taxes Paid 4.46 Taxable Income 0.00
-------- Corporate Tax Exclusion 100%
Corporate Tax Rate 0%
FEB Dividend Paid 51.33 Corporate Taxes 0
======== ------
BLP Dividend Paid 0.00
======
FEB Shareholders BLP Shareholders
===================================================== =========================================================
Shares Pct. Dividend Shares Pct. Dividend
------------------------------- -------------------------
Outsiders Outsiders
00.0 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 5.48 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 5.87 0.00 0.0000 0.00
------------------------------ ------------------------
132,420.00 22.1176 11.35 0.00 0.0000 0.00
Insiders Insiders
146,970.00 24.5478 12.60 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
------------------------------ ------------------------
146,971.00 24.5479 12.60 0.00 0.0000 0.00
Stock Bonus Plan 00.0 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 27.38 Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
------------------------------ ------------------------
598,710.00 100.0000 51.33 0.00 0.0000 0.00
- ----------------------============================== ---------------------------------========================
FEB & BLP Flows
Page 5
Confidential
------------
BLP Liquidation Scenario
40
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
====================== ===== ===== ===== ==== ===============
Outsiders
- ----------------------
Edward McLaughlin 0.00 1.27 0.00 0.00 1.27
Cede & Co. 3.62 1.06 5.48 0.00 10.16
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson & Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.08 5.87 0.00 13.91
----- ----- ----- ---- -----
10.66 5.43 11.35 0.00 27.45
Insiders
- ----------------------
Russell Best 1.40 0.40 12.60 0.00 14.40
Mariea Best 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- -----
1.40 0.40 12.60 0.00 14.40
Stock Bonus Plan 8.73 5.11 0.00 0.00 13.84
Best Lock Corp 0.00 5.26 27.38 0.00 32.63
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- -----
Sub-Total 20.79 16.19 51.33 0.00 88.32
Administrative Expenses 0.54 0.38 0.00 0.93
Corporate Taxes Paid 6.29 4.46 0.00 10.76
----- ----- ----- ---- -----
Total Payments 20.79 23.03 56.18 0.00 100.00
===== ===== ===== ==== ======
- ----------------------------------------------------------------------------------------------------------
Dividend Summary
Page 6
Confidential
------------
BLP Liquidation Scenario
41
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
Cumulative Distribution Initial Dividend % Initial Div % TOT Dividend
======================= ================ ============= ==============
Outsiders
- -----------------------
Edward McLaughlin 1.27 1.27 1.81
Cede & Co. 10.16 10.16 14.48
Della & Co. 2.00 2.00 2.85
Martin Nelson & Assoc. 0.10 0.10 0.14
All Other Outsiders 13.91 13.91 19.82
------ ------ ------
27.45 27.45 39.11
Insiders
- -----------------------
Russell Best 14.40 14.40 20.52
Mareia Best 0.00 0.00 0.00
------ ------ ------
14.40 14.40 20.52
Stock Bonus Plan 13.84 13.84 19.72
Best Lock Corp 32.63 32.63 0.00
Best Univeral Lock 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00
------ ------ ------
Sub-Total 88.32 88.32 79.35
Administrative Expenses 0.93 0.93 1.32
Corporate Taxes Paid 10.76 10.76 19.33
------ ------ ------
Total 100.00 100.00 100.00
====== ====== ======
- -------------------------------------------------------------------------------
===============================================================================
Note:
For Shareholders
Where DIV is the initial dividend percent for each owner,
and BLC is the dividend percent returned to BLC,
and TR is BLC's Effective Tax Rate
TOT is the percent of cumulative dividends received by
each owner in a continous payment loop
2 2
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)*BLC) ...
or
TOT=DIV/(1-((1-TR)*BLC))
For Corporate Taxes
2 3
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)*BLC) ...
2 3
+TR*BLC+TR*BLC((1-TR)*BLC)+TR*BLC((1-TR)*BLC) +TR*BLC((1-TR)*BLC) ...
or
TOT=DIV/(1-((1-TR)*BLC)) + TR*BLC/(1-((1-TR)*BLC))
===============================================================================
Cumulative Distribution
Page 7
Confidential
------------
BLP Liquidation Scenario
42
PROJECT THOROUGHHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------
BLC Operations Value 44,140,000
==============
Share Solutions % TOT Dividend Value Shares
====================== ============== ============= ==============================================
BLC BUL FEB BLP
----------------------------------------------
Outsiders
- ----------------------
Edward McLaughlin 1.81 800,738.03 0.00 6,798.00 0.00 0.00
Cede & Co. 14.48 6,391,001.77 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.85 1,259,753.68 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.14 63,917.91 100.00 100.00 0.00 0.00
All Other Outsiders 19.82 8,748,550.46 5,981.17 16,436.00 68,499.00 0.00
------ ------------- ----------------------------------------------
39.11 17,263,961.85 12,862.32 29,005.00 132,420.00 0.00
Insiders
- ----------------------
Russell Best 20.52 9,055,443.96 1,686.00 2,127.00 146,970.00 0.00
Mariea Best 0.00 693.11 1.00 1.00 1.00 0.00
------ ------------- ----------------------------------------------
20.52 9,056,137.07 1,687.00 2,128.00 146,971.00 0.00
Stock Bonus Plan 19.72 8,705,170.87 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 28,074.00 319,319.00 0.00
Best Univeral Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------ ------------- ----------------------------------------------
Sub-Total 79.35 35,025,269.78 120,642.85 386,469.00 598,710.00 0.00
==============================================
Administrative Expenses 1.32 583,333.33
Corporate Taxes Paid 19.33 8,531,396.88
Total 100.00 44,140,000.00
====== =============
Per Share Calculations:
======================= ===================
Value BLC BUL FEB BLP Per Share Entity
------------ ---------------------------------------------
Della & Co. 1,259,753.68 = 2,416.15 521.39 BLC
Edward McLaughlin 800,738.03 = 6,798.00 117.79 BUL A&B
Cede & Co. 6,391,001.77 = 4,365.00 5,671.00 63,921.00 0.00
= 2,275,862.35 667,988.43
= 2,943,850.79
3,447,150.98 = 53.93 FEB
Russell Best 9,055,443.96 = 1,686.00 2,127.00 146,970.00 0.00
= 879,061.61 250,539.83 7,925,842.51
= 9,055,443.96
0.00 = 0.00 BLP
- -----------------------------------------------------------------------------------------------------------------------------------
Share Solutions
Page 8
Confidential
------------
BLP Liquidation Scenario
43
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
BLC 521.39 BUL 117.79
========================== ==========================
Shares Value Shares Value
-------------------------- --------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 6,798.00 800,738.03
Cede & Co. 4,365.00 2,275,862.35 5,671.00 667,988.43
Della & Co. 2,416.15 1,259,753.68 0.00 0.00
Martin Nelson & Assoc. 100.00 52,138.89 100.00 11,779.02
All Other Outsiders 5,981.17 3,118,515.38 16,436.00 1,936,000.33
-------------------------- --------------------------
12,862.32 6,706,270.31 29,005.00 3,416,505.82
Insiders
- ----------------------
Russell Best 1,686.00 879,061.61 2,127.00 250,539.83
Maria Best 1.00 521.39 1.00 117.79
-------------------------- --------------------------
1,687.00 879,583.00 2,128.00 250,657.62
Stock Bonus Plan 10,537.19 5,493,973.44 27,262.00 3,211,197.44
Best Lock Corp 0.00 0.00 28,074.00 3,306,843.11
Best Univeral Lock 95,556.34 49,822,010.76 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,337,071.04
Best Lock Partners 0.00 0.00 0.00 0.00
-------------------------- --------------------------
0.00
Sub-Total 120,642.85 62,901,837.50 386,469.00 45,522,275.02
=========== ==========
Administrative Expenses 341,277.04
Corporate Taxes Paid 1,765,337.01 3,958,458.70
------------- -------------
Total Outflows 64,667,174.51 49,822,010.76
============= =============
Less: Intercompany Flows
From BLC 49,822,010.76
From BUL 3,306,843.11
From FEB 17,220,331.40
From BLP 0.00
------------- -------------
20,527,174.51 49,822,010.76
Net Cash Flow 44,140,000.00 0.00
============= =============
- -------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------
FEB 53.93 BLP 0.00 Total Valule
========================== ========================== ==============
Shares Value Shares Value
-------------------------- --------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 0.00 0.00 800,738.03
Cede & Co. 63,921.00 3,447,150.98 0.00 0.00 6,391,001.77
Della & Co. 0.00 0.00 0.00 0.00 1,259,753.68
Martin Nelson & Assoc. 0.00 0.00 0.00 0.00 63,917.91
All Other Outsiders 68,499.00 3,694,034.74 0.00 0.00 8,748,550.46
-------------------------- -------------------------- --------------
132,420.00 7,141,185.72 0.00 0.00 17,263,961.85
Insiders
- ----------------------
Russell Best 146,970.00 7,925,842.51 0.00 0.00 9,055,443.96
Maria Best 1.00 53.93 0.00 0.00 693.11
-------------------------- -------------------------- --------------
146,971.00 7,925,896.44 0.00 0.00 9,056,137.07
Stock Bonus Plan 0.00 0.00 0.00 0.00 8,705,170.87
Best Lock Corp 319,319.00 17,220,331.40 0.00 0.00 20,527,174.51
Best Univeral Lock 0.00 0.00 0.00 0.00 49,822,010.76
Frank E. Best 0.00 0.00 0.00 0.00 35,337,071.04
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
-------------------------- -------------------------- --------------
Sub-Total 598,710.00 32,287,413.57 0.00 0.00 140,711,526.09
========== ==========
Administrative Expenses 242,056.29 0.00 583,333.33
Corporate Taxes Paid 2,807,601.18 0.00 8,531,396.88
------------- ------------- --------------
Total Outflows 35,337,071.04 0.00 149,826,256.30
============= ============= ==============
Less: Intercompany Flows
From BLC 49,822,010.76
From BUL 35,337,071.04 0.00 38,643,914.14
From FEB 0.00 17,220,331.40
From BLP 0.00
------------- ------------- --------------
35,337,071.04 0.00 105,686,256.30
Net Cash Flow (0.00) 0.00 44,140,000.00
============= ============= ==============
- ------------------------------------------------------------------------------------------------
Shareholder Values
Page 9
Confidential
------------
BLP Liquidation Scenario
44
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
Value of Insider Holdings
- --------------------------
Russell Best 9,055,443.96
Mariea Best 693.11
-------------
Total Insiders 9,056,137.07
Value of Outsider Holdings
- --------------------------
Edward McLaughlin 800,738.03
Cede & Co. 6,391,001.77
Della & Co. 1,259,753.68
Martin Nelson & Assoc. 63,917.91
All Other Outsiders 8,748,550.46
-------------
17,263,961.85
Stock Bonus Plan 8,705,170.87
-------------
Total Outsiders 25,969,132.72
===============================
Administrative Expenses 583,333.33 Note: Administrative Expenses
calculated as follows:
Corporate Taxes 8,531,396.88 BUL 35,000.00
------------- FEB 35,000.00
BLP 0.00
Total Value 44,140,000.00 ----------
============= 70,000.00
Discount Rate: 17%
Inflation: 5%
Present Val 583,333.33
- -------------------------------------------------------------------------------
Value Summary
Page 10
Confidential
------------
BLP Liquidation Scenario
45
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- --------------------------------------------------
BUL Adjustments
==================================================
BUL Price
Shares 117.79 % BUL Value
------- ------------------------
BUL A 86,469 10,185,204 22.37%
BUL B 300,000 35,337,071 77.63%
------- ------------------------
386,469 45,522,275 100.00%
BUL A Preference 0.57
Required Equity
Retur 0.21
PV BUL Preference 2.71
Adjustmen Price Distributions % BUL Value
--------------------------------------------
BUL A Ad 2.11 119.90 10,367,393 22.77%
BUL B Ad 0.61 117.18 35,154,882 77.23%
--------------------------
45,522,275 100.00%
- ----------------------------------------------------
Adjustments for BUL A&B
Page 11
Confidential
------------
BLP Liquidation Scenario
46
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB BLP
====================== =================== ============================= ==================== ====================
Shares Pct. Shares Pct. Pct. Adj. Shares Pct. Shares Pct.
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.0000 6,798.00 1.7590 1.7905 0.00 0.0000 0.00 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 1.4936 63,921.00 10.6765 0.00 0.0000
Della & Co. 2,416.15 2.0027 0.00 0.0000 0.0000 0.00 0.0000 0.00 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0263 0.00 0.0000 0.00 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 4.3289 68,499.00 11.4411 0.00 0.0000
------------------- ---------------------------- -------------------- -------------------
12,862.32 10.6615 29,005.00 7.5051 7.6394 132,420.00 22.1176 0.00 0.0000
Insiders
- ----------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 0.5602 146,970.00 24.5478 0.00 0.0000
Mariea Best 1.00 0.0008 1.00 0.0003 0.0003 1.00 0.0002 0.00 0.0000
------------------- ---------------------------- -------------------- -------------------
1,687.00 1.3983 2,128.00 0.5506 0.5605 146,971.00 24.5479 0.00 0.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 7.1803 0.00 0.0000 0.00 0.0000
Best Lock Corp 0.00 0.0000 28,074.00 7.2642 7.3942 319,319.00 53.3345 0.00 0.0000
Best Univeral Lock 95,556.34 79.2060 0.00 0.0000 0.0000 0.00 0.0000 0.00 0.0000
Frank E. Best 0.00 0.0000 300,000.00 77.6259 77.2257 0.00 0.0000 0.00 0.0000
Best Lock Partners 0.00 0.00 0.0000 0.0000 0.00 0.0000 0.00 0.0000
------------------- ---------------------------- -------------------- -------------------
Total 120,642.85 100.0000 386,469.00 100.0000 100.0000 598,710.00 100.0000 0.00 0.0000
=================== ============================= ==================== ===================
===================
Version: 44.1
- ----------------------------------------------------------------------------------------------------------------------------------
Adjusted Ownership
Page 12
Confidential
------------
BLP Liquidation Scenario
47
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 100.00 BUL Dividend Rec'd (From BLC) 79.21
======== Administrative Expenses 1% 0.54
Corporate Tax Exclusion 80% ----------
Corporate Tax Rate 43% Taxable Income 78.66
Effective Tax Rate 9% Corporate Tax Exclusion 80%
Corporate Tax Rate 40%
Corporate Taxes Paid 6.29
----------
BUL Dividend Paid 72.37
----------
BLC Shareholders BUL Shareholders
=========================================================== ===================================================================
Shares Pct. Dividend Shares Adj. Pct Dividend
--------------------------------- -------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7905 1.30
4,365.00 3.6181 3.62 5,671.00 1.4936 1.08
2,416.15 2.0027 2.00 0.00 0.0000 0.00
100.00 0.0829 0.08 100.00 0.0263 0.02
5,981.17 4.9577 4.96 16,436.00 4.3289 3.13
------------------------------- ------------------------------
12,862.32 10.6615 10.66 29,005.00 7.6394 5.53
Insiders Insiders
1,686.00 1.3975 1.40 2,127.00 0.5602 0.41
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------- ------------------------------
1,687.00 1.3983 1.40 2,128.00 0.5605 0.41
Stock Bonus Plan 10,537.19 8.7342 8.73 Stock Bonus Plan 27,262.00 7.1803 5.20
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.3942 5.35
Best Univeral Lock 95,556.34 79.2060 79.21 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.2257 55.89
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
------------------------------- ------------------------------
Total 120,642.85 100.0000 100.0000 Total 386,469.00 100.0000 72.37
=============================== ==============================
- ---------------------------------------------------------------------------------------------------------------------------------
Adjusted BLC & BUL Flows
Page 13
Confidential
------------
BLP Liquidation Scenario
48
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd(From BUL) 55.89 BLP Dividends Rec'd(From FEB) 0.00
Administrative Expenses 1% 0.38 (From BUL) 0.00
-------- ----
Taxable Income 55.50 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 4.44 Corporate Tax Exclusion 100%
-------- orate Tax Rate 0%
FEB Dividend Paid 51.06 Corporate Taxes 0
======== ----
BLP Dividend Paid 0.00
====
FEB Shareholders BLP Shareholders
========================================================== =========================================================
Shares Pct. Dividend Shares Pct. Dividend
----------------------------- ------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 5.45 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 5.84 0.00 0.0000 0.00
--------------------------- ---------------------
132,420.00 22.1176 11.29 0.00 0.0000 0.00
Insiders Insiders
146,970.00 24.5478 12.53 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
--------------------------- ---------------------
146,971.00 24.5479 12.53 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 27.23 Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
--------------------------- ---------------------
598,710.00 100.0000 51.06 0.00 0.0000 0.00
=========================== =====================
- -----------------------------------------------------------------------------------------------------------------------
Adjusted FEB & BLP Flows
Page 14
Confidential
------------
BLP Liquidation Scenario
49
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
======================= ====== ===== ===== ==== ===============
Outsiders
- -----------------------
Edward McLaughlin 0.00 1.30 0.00 0.00 1.30
Cede & Co. 3.62 1.08 5.45 0.00 10.15
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson & Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.13 5.84 0.00 13.93
----- ----- ----- ---- ------
10.66 5.53 11.29 0.00 27.48
Insiders
- -----------------------
Russell Best 1.40 0.41 12.53 0.00 14.34
Mariea Best 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- ------
1.40 0.41 12.53 0.00 14.34
Stock Bonus Plan 8.73 5.20 0.00 0.00 13.93
Best Lock Corp 0.00 5.35 27.23 0.00 32.59
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ---- ------
Sub-Total 20.79 16.48 51.06 0.00 88.34
Administrative Expenses 0.54 0.38 0.00 0.93
Corporate Taxes Paid 6.29 4.44 0 10.73
----- ----- ----- ---- ------
Total Payments 20.79 23.32 55.89 0.00 100.00
===== ===== ===== ==== ======
- ------------------------------------------------------------------------------------------------------
Adjusted Dividend Summary
Page 15
Confidential
------------
BLP Liquidation Scenario
50
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
Cumulative Distribution Initial Dividend % Initial Div % TOT Dividend
======================= ================ ============= ==============
Outsiders
- ----------------------
Edward McLaughlin 1.30 1.30 1.85
Cede & Co. 10.15 10.15 14.46
Della & Co. 2.00 2.00 2.85
Martin Nelson & Assoc. 0.10 0.10 0.15
All Other Outsiders 13.93 13.93 19.84
------ ------ ------
27.48 27.48 39.14
Insiders
- ----------------------
Russell Best 14.34 14.34 20.42
Mariea Best 0.00 0.00 0.00
------ ------ ------
14.34 14.34 20.42
Stock Bonus Plan 13.93 13.93 19.84
Best Lock Corp 32.59 32.59 0.00
Best Univeral Lock 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00
------ ------ ------
Sub-Total 88.34 88.34 79.40
Administrative Expenses 0.93 0.93 1.32
Corporate Taxes Paid 10.73 10.73 19.28
------ ------ ------
Total 100.00 100.00 100.00
====== ====== ======
- ------------------------------------------------------------------------------
==============================================================================
Note:
For Shareholders
Where DIV is the initial dividend percent for each owner,
and BLC is the dividend percent returned to BLC,
and TR is BLC's Effective Tax Rate
TOT is the percent of cumulative dividends received by
each owner in a continuous payment loop
(2) (3)
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)*BLC) ...
or
TOT=DIV/(1-((1-TR)*BLC))
For Corporate Taxes
(2) (3)
TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC) +DIV((1-TR)*BLC) ...
(2) (3)
+TR*BLC+TR*BLC((1-TR)*BLC)+TR*BLC((1-TR)*BLC) +TR*BLC((1-TR)*BLC) ...
or
TOT=DIV/(1-((1-TR)*BLC)) + TR*BLC/(1-((1-TR)*BLC))
==============================================================================
Adjusted Cumulative Distribution
Page 16
Confidential
------------
BLP Liquidation Scenario
51
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
==============
BLC Operations Value 44,140,000
==============
Share Solutions % TOT Dividend Value Shares
====================== ============== ============= ==================================================
BLC BUL FEB BLP
--------------------------------------------------
Outsiders
- ----------------------
Edward McLaughlin 1.85 814,533.73 0.00 6,798.00 0.00 0.00
Cede & Co. 14.46 6,381,022.48 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.85 1,258,962.38 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.15 64,088.10 100.00 100.00 0.00 0.00
All Other Outsiders 19.84 8,758,451.54 5,981.17 16,436.00 68,499.00 0.00
------ ------------- --------------------------------------------------
39.14 17,277,058.23 12,862.32 29,005.00 132,420.00 0.00
Insiders
- ----------------------
Russell Best 20.42 9,013,089.31 1,686.00 2,127.00 146,970.00 0.00
Mariea Best 0.00 694.50 1.00 1.00 1.00 0.00
------ ------------- --------------------------------------------------
20.42 9,013,783.80 1,687.00 2,128.00 146,971.00 0.00
Stock Bonus Plan 19.84 8,757,044.74 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 28,074.00 319,319.00 0.00
Best Universal Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------ ------------- --------------------------------------------------
Sub-Total 79.40 35,047,886.76 120,642.85 386,469.00 598,710.00 0.00
==================================================
Administrative Expenses 1.32 583,333.33
Corporate Taxes Paid 19.28 8,508,779.91
------ -------------
Total 100.00 44,140,000.00
====== =============
Per Share Calculations:
======================= Value BLC BUL FEB BLP
------------- ---------------------------------------------------
Della & Co. 1,258,962.38 = 2,416.15
Edward McLaughlin 814,533.73 = 6,798.00
Cede & Co. 6,381,022.48 = 4,365.00 5,671.00 63,921.00 0.00
= 2,274,432.79 679,497.03
= 2,953,929.81
3,427,092.67 =
Russell Best 9,013,089.31 = 1,686.00 2,127.00 146,970.00 0.00
= 878,509.43 254,856.32 7,879,723.55
= 9,013,089.31
0.00 =
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
Per Share Calculations: ===================
======================= PER SHARE ENTITY
Della & Co. 521.06 BLC
Edward McLaughlin 119.82 BUL A BUL A 86,469 10,360,682 22.77%
117.11 BUL B BUL B 300,000 35,132,125 77.23%
------ -------------------
Cede & Co. 2.71 45,492,808 100.00%
Russell Best 53.61 FEB
0.00 BLP
- ----------------------------------------------------------------------------------------
Adjusted Share Solutions
Page 17
Confidential
------------
BLP Liquidation Scenario
52
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------
BUL A 119.82
BLC 521.06 BUL B 117.11
========================== =========================
Shares Value Shares Value
-------------------------- -------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 6,798.00 814,533.73
Cede & Co. 4,365.00 2,274,432.79 5,671.00 679,497.03
Della & Co. 2,416.15 1,258,962.38 0.00 0.00
Martin Nelson & Assoc. 100.00 52,106.13 100.00 11,981.96
All Other Outsiders 5,981.17 3,116,556.51 16,436.00 1,969,355.17
-------------------------- -------------------------
12,862.32 6,702,057.80 29,005.00 3,475,367.89
Insiders
- ----------------------
Russell Best 1,686.00 878,509.43 2,127.00 254,856.32
Mariea Best 1.00 521.06 1.00 119.82
-------------------------- -------------------------
1,687.00 879,030.49 2,128.00 254,976.14
Stock Bonus Plan 10,537.19 5,490,522.43 27,262.00 3,266,522.30
Best Lock Corp 0.00 0.00 28,074.00 3,363,815.83
Best Univeral Lock 95,556.34 49,790,715.38 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,132,125.45
Best Lock Partners 0.00 0.00 0.00 0.00
-------------------------- -------------------------
0.00
Sub-Total 120,642.85 62,862,326.11 386,469.00 45,492,807.62
========== ==========
Administrative Expenses 342,011.45
Corporate Taxes Paid 1,761,619.31 3,955,896.31
------------- -------------
Total Outflows 64,623,945.42 49,790,715.38
============= =============
Less: Intercompany Flows
From BLC 49,790,715.38
From BUL 3,363,815.83
From FEB 17,120,129.59
From BLP 0.00
------------- -------------
20,483,945.42 49,790,715.38
Net Cash Flow 44,140,000.00 (0.00)
============= =============
- -------------------------------------------------------------------------------
FEB 53.61 BLP 0.00 Total Value
========================== ========================= =============
Shares Value Shares Value
-------------------------- -------------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 0.00 0.00 814,533.73
Cede & Co. 63,921.00 3,427,092.67 0.00 0.00 6,381,022.48
Della & Co. 0.00 0.00 0.00 0.00 1,258,962.38
Martin Nelson & Assoc. 0.00 0.00 0.00 0.00 64,088.10
All Other Outsiders 68,499.00 3,672,539.86 0.00 0.00 8,758,451.54
-------------------------- ------------------------- -------------
132,420.00 7,099,632.53 0.00 0.00 17,277,058.23
Insiders
- ----------------------
Russell Best 146,970.00 7,879,723.55 0.00 0.00 9,013,089.31
Mariea Best 1.00 53.61 0.00 0.00 694.50
-------------------------- ------------------------- -------------
146,971.00 7,879,777.17 0.00 0.00 9,013,783.80
Stock Bonus Plan 0.00 0.00 0.00 0.00 8,757,044.74
Best Lock Corp 319,319.00 17,120,129.59 0.00 0.00 20,483,945.42
Best Univeral Lock 0.00 0.00 0.00 0.00 49,790,715.38
Frank E. Best 0.00 0.00 0.00 0.00 35,132,125.45
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
-------------------------- ------------------------- --------------
Sub-Total 598,710.00 32,099,539.29 0.00 0.00 140,454,673.02
========== ==========
Administrative Expenses 241,321.88 0.00 583,333.33
Corporate Taxes Paid 2,791,264.29 0.00 8,508,779.91
------------- ------------- --------------
Total Outflows 35,132,125.45 0.00 149,546,786.26
============= ============= ==============
Less: Intercompany Flows
From BLC 49,790,715.38
From BUL 35,132,125.45 0.00 38,495,941.29
From FEB 0.00 17,120,129.59
From BLP 0.00
------------- ------------- --------------
35,132,125.45 0.00 105,406,786.26
Net Cash Flow (0.00) 0.00 44,140,000.00
============= ============= ==============
Adjusted Shareholder Values
Page 18
Confidential
------------
BLP Liquidation Scenario
53
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- --------------------------------------------
Value of Insider Holdings
- --------------------------
Russell Best 9,013,089.31
Mariea Best 694.50
-------------
Total Insiders 9,013,783.80
Value of Outsider Holdings
- --------------------------
Edward McLaughlin 814,533.73
Cede & Co. 6,381,022.48
Della & Co. 1,258,962.38
Martin Nelson & Assoc. 64,088.10
All Other Outsiders 8,758,451.54
-------------
17,277,058.23
Stock Bonus Plan 8,757,044.74
-------------
Total Outsiders 26,034,102.96
Administrative Expenses 583,333.33
Corporate Taxes 8,508,779.91
-------------
Total Value 44,140,000.00
=============
- --------------------------------------------
Confidential
Adjusted Value Summary ------------
Page 19 BLP Liquidation Scenario
54
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
Post-BLP Pre-BLP 87/13 87/13
Value Holdings Liquidation Liquidation Difference Pro-Rata Liq BUL A First
===================== ============= ============= ============ ===================================
Insiders
Russell Best 9,013,089.31 8,790,404.22 222,685.09 622.44 585.52
Mariea Best 694.50 697.20 (2.71) 0.09 0.09
------------- ------------- ------------- -----------------------------------
Total Insiders 9,013,783.80 8,791,101.42 222,682.38 622.53 585.61
Outsiders
- ---------------------
Edward McLaughlin 814,533.73 817,307.59 (2,773.86) (65.06) (63.44)
Cede & Co. 6,381,022.48 6,402,419.13 (21,396.65) (869.99) (864.98)
Della & Co. 1,258,962.38 1,264,153.48 (5,191.10) 282.67 283.72
Martin Nelson & Assoc. 64,088.10 64,343.75 (255.65) 10.74 10.81
All Other Outsiders 8,758,451.54 8,788,408.11 (29,956.58) (878.93) (870.54)
------------- ------------- ------------- -----------------------------------
17,277,058.23 17,336,632.07 (59,573.84) (1,520.56) (1,504.43)
Stock Bonus Plan 8,757,044.74 8,790,807.90 (33,763.16) 971.87 982.93
------------- ------------- ------------- -----------------------------------
Total Outsiders 26,034,102.96 26,127,439.97 (93,337.01) (548.69) (521.50)
Administrative Expenses 583,333.33 666,666.67 (83,333.34) (0.01) 0.00
Corporate Taxes 8,508,779.91 8,554,791.94 (46,012.03) (73.83) (64.11)
------------- ------------- ------------- -----------------------------------
Total Value 44,140,000.00 44,140,000.00 (0.00) (0.00) 0.00
============= ============= ============= ===================================
- -----------------------------------------------------------------------------------------------------------------------------------
87/13 85/15
Excl. Adm. Exp Incl. Adm Exp
=================================
Insiders
Russell Best 23,051.31 199,664.77
Mariea Best 0.86 (3.47)
--------------------------------
Total Insiders 23,052.17 199,661.29
Outsiders
- -------------------
Edward McLaughlin 1,367.34 (4,193.16)
Cede & Co. 11,700.09 (33,869.71)
Della & Co. 1,279.73 (6,169.13)
Martin Nelson & Assoc. 73.08 (317.01)
All Other Outsiders 15,312.04 (46,013.36)
--------------------------------
29,732.27 (90,562.37)
Stock Bonus Plan 11,064.53 (43,720.31)
--------------------------------
Total Outsiders 40,796.80 (134,282.68)
Administrative Expenses (83,333.34) (0.00)
Corporate Taxes 19,484.37 (65,378.61)
--------------------------------
Total Value (0.00) (0.00)
========= ==========
- ----------------------------------------------------------------
BLP Liquidation Reconciliation
Page 20
Confidential
------------
BLP Liquidation Scenario
55
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- --------------------------------------------------------------------------------------------------------------------
BLC Dividend Rec'd 32.63 BUL Dividend Rec'(From BLC) 23.62
Corporate Tax Exclusion 80% Administrative Expenses 1% 0.16
-----
Corporate Tex Rate 43% Taxable Income 23.46
Corporate Taxes Paid 2.81 Corporate Tax Exclusion 80%
------ Corporate Tex Rate 40%
BLC Dividend Paid 29.83 Corporate Taxes Paid 1.88
====== -----
BUL Dividend Paid 21.59
=====
BLC Shareholders BUL Shareholders
====================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.38
4,365.00 3.6181 1.08 5,671.00 1.4674 0.32
2,416.15 2.0027 0.60 0.00 0.0000 0.00
100.00 0.0829 0.02 100.00 0.0259 0.01
5,981.17 4.9577 1.48 16,436.00 4.2529 0.92
-------------------------- --------------------------
12,862.32 10.6615 3.18 29,005.00 7.5051 1.62
Insiders Insiders 0.00
1,686.00 1.3975 0.42 2,127.00 0.5504 0.12
1.00 0.0008 0.00 1.00 0.0003 0.00
-------------------------- --------------------------
1,687.00 1.3983 0.42 2,128.00 0.5506 0.12
Stock Bonus Plan 10,537.19 8.7342 2.61 Stock Bonus Plan 27,262.00 7.0541 1.52
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 1.57
Best Univeral Lock 95,556.34 79.2060 23.62 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 16.76
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------- --------------------------
Total 120,642.85 100.0000 29.83 Total 386,469.00 100.0000 21.59
- --------------------------------------------------------------------------------------------------------------------
BLC & BUL Round 2
Page 21
Confidential
------------
BLP Liquidaiton Scenario
56
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 16.76 BLP Dividends Rec'd (From BUL) 0.00
Administrative Expenses 1% 0.11 (From BUL) 0.00
----- ----
Taxable Income 16.64 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
----
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 1.33 Corporate Tax Exclusion 100%
----- Corporate Tax Rate 0%
FEB Dividend Paid 15.31 Corporate Taxes 0
=====
BLP Dividend Paid 0.00
====
FEB Shareholders BLP Shareholders
==================================================== ===================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- ------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 1.63 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 1.75 0.00 0.0000 0.00
-------------------------- ------------------------
132,420.00 22.1176 3.39 0.00 0.0000 0.00
Insiders Insiders
146,970.00 24.5478 3.76 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
-------------------------- ------------------------
146,971.00 24.5479 3.76 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 8.17 Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
--------------------------- ------------------------
598,710.00 100.0000 15.31 0.00 0.0000 0.00
=========================== ========================
- -------------------------------------------------------------------------------------------------------------
FEB & BLP Round 2
Page 22
Confidential
-------------
BLP Liquidation Scenario
57
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-term Dividend Model
<Capation>
- ---------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
==== ==== ==== ==== ===============
Outsiders
0.00 0.38 0.00 0.00 0.38
1.08 0.32 1.63 0.00 3.03
0.60 0.00 0.00 0.00 0.60
0.02 0.01 0.00 0.00 0.03
1.48 0.92 1.75 0.00 4.15
---- ---- ---- ---- ---------------
3.18 1.62 3.39 0.00 8.19
Insiders
0.42 0.12 3.76 0.00 4.29
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ---------------
0.42 0.12 3.76 0.00 4.29
Stock Bonus Plan 2.61 1.52 0.00 0.00 4.13
Best Lock Corp 0.00 1.57 8.17 0.00 9.73
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ---------------
Sub-Total 6.20 4.83 15.31 0.00 26.34
Administrative Expenses 0.16 0.11 0.00 0.28
Corporate Taxes Paid 2.81 1.88 1.33 0.00 6.01
---- ---- ---- ---- ---------------
Total Payments 9.01 6.87 16.76 0.00 32.63
==== ==== ===== ==== ===============
- ---------------------------------------------------------------------------------------------------------
Dividend Summary Round 2
Page 23
Confidential
------------
BLP Liquidation Scenario
58
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- --------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 9.73 BUL Dividend Rec'd (From BLC)
7.05
Administrative Expenses 1% 0.05
----
Corporate Tax Exclusion 80% Taxable Income 7.00
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.84 Corporate Tax Rate 40%
---- Corporate Taxes Paid 0.56
BLC Dividend Paid 8.90 ----
==== BUL Dividend Paid 6.44
====
BLC Shareholders BUL Shareholders
====================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.11
4,365.00 3.6181 0.32 5,671.00 1.4674 0.09
2,416.15 2.0027 0.18 0.00 0.0000 0.00
100.00 0.0829 0.01 100.00 0.0259 0.00
5,981.17 4.9577 0.44 16,436.00 4.2529 0.27
------------------------- --------------------------
12,862.32 10.6615 0.95 29,005.00 7.5051 0.48
Insiders Insiders
1,686.00 1.3975 0.12 2,127.00 0.5504 0.04
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------- --------------------------
1,687.00 1.3983 0.12 2,128.00 0.5506 0.04
Stock Bonus Plan 10,537.19 8.7342 0.78 Stock Bonus Plan 27,262.00 7.0541 0.45
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.47
Best Universal Lock 95,556.34 79.2060 7.05 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 5.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------- --------------------------
Total 120,642.85 100.0000 8.90 Total 386,469.00 100.000 6.44
========================== ==========================
- --------------------------------------------------------------------------------------------------------------------
BLC & BUL Round 3
Page 24
Confidential
------------
BLP Liquidation Scenario
59
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 5.00 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.03 (From BUL) 0.00
---- ----
Taxable Income 4.96 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
----
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 0.40 Corporate Tax Exclusion 100%
---- Corporate Tax Rate 0%
FEB Dividend Paid 4.57 Corporate Taxes 0
====
BLP Dividend Paid 0.00
====
FEB Shareholders BLP Shareholders
======================================================= =======================
Shares Pct. Dividend Shares Pct. Dividend
--------------------------- -----------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.49 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.52 0.00 0.0000 0.00
--------------------------- --------------------
132,420.00 22.1176 1.01 0.00 0.0000 0.00
Insiders
146,970.00 24.5478 1.12 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
--------------------------- --------------------
146,971.00 24.5479 1.12 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 2.44 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
--------------------------- --------------------
598,710.00 100.0000 4.57 0.00 0.0000 0.00
=========================== ====================
- --------------------------------------------------------------------------------------------------------------
FEB & BLP Round 3
Page 25
Confidential
------------
BLP Liquidation Scenario
60
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
==== ==== ==== ==== ================
Outsiders
0.00 0.11 0.00 0.00 0.11
0.32 0.09 0.49 0.00 0.90
0.18 0.00 0.00 0.00 0.18
0.01 0.00 0.00 0.00 0.01
0.44 0.27 0.52 0.00 1.24
---- ---- ---- ---- ----------------
0.95 0.48 1.01 0.00 2.44
Insiders
0.12 0.04 1.12 0.00 1.28
0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----------------
0.12 0.04 1.12 0.00 1.28
Stock Bonus Plan 0.78 0.45 0.00 0.00 1.23
Best Lock Corp 0.00 0.47 2.44 0.00 2.90
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
---- ---- ---- ---- ----------------
Sub-Total 1.85 1.44 4.57 0.00 7.86
Administrative Expenses 0.05 0.03 0.00 0.08
Corporate Taxes Paid 0.84 0.56 0.40 0 1.79
---- ---- ---- ---- ----------------
Total Payments 2.69 2.05 5.00 0.00 9.73
==== ==== ==== ==== ================
- ----------------------------------------------------------------------------------------------------------
Dividend Summary Round 3
Page 26
Confidential
------------
BLP Liquidation Scenario
61
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- --------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 2.90 BUL Dividend Rec'd (From BLC) 2.10
Administrative Expenses 1% 0.01
----
Corporate Tax Exclusion 80% Taxable Income 2.09
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.25 Corporate Tax Rate 40%
----
Corporate Taxes Paid 0.17
BLC Dividend Paid 2.65 ----
==== BUL Dividend Paid 1.92
====
BLC Shareholders BUL Shareholders
====================================================================================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- -------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.03
4,365.00 3.6181 0.10 5,671.00 1.4674 0.03
2,416.15 2.0027 0.05 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.13 16,436.00 4.2529 0.08
------------------------- ------------------------------
12,862.32 10.6615 0.28 29,005.00 7.5051 0.14
Insiders Insiders
1,686.00 1.3975 0.04 2,127.00 0.5504 0.01
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------- ------------------------------
1,687.00 1.3983 0.04 2,128.00 0.5506 0.01
Stock Bonus Plan 10,537.19 8.7342 0.23 Stock Bonus Plan 27,262.00 7.0541 0.14
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.14
Best Universal Lock 95,556.34 79.2060 2.10 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 1.49
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
------------------------- ------------------------------
Total 120,642.85 100.000 2.65 Total 386,469.00 100.0000 1.92
- ----------------------==========================---------------------------------===============================
BLC & BUL Round 4
Page 27
Confidential
------------
BLP Liquidation Scenario
62
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 1.49 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.01 (From BUL) 0.00
---- ----
Taxable Income 1.48 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% Taxable Income ----
0.00
Corporate Taxes Paid 0.12 Corporate Tax Exclusion 100%
---- Corporate Tax Rate 0%
FEB Dividend Paid 1.36 Corporate Taxes 0
====
BLP Dividend Paid 0.00
====
FEB Shareholders BLP Shareholders
====================================================== ====================================================
Shares Pct. Dividend Shares Pct. Dividend
----------- ---------------- -----------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.15 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.16 0.00 0.0000 0.00
----------- --------------- -----------------------
132,420.00 22.1176 0.30 0.00 0.0000 0.00
Insiders
146,970.00 24.5478 0.33 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
----------- --------------- -----------------------
146,971.00 24.5479 0.33 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 0.73 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
----------- --------------- -----------------------
598,710.00 100.0000 1.36 0.00 0.0000 0.00
- ------------------------=============================-----------------------------------------=======================---------------
FEB & BLP Round 4
Page 28
Confidential
------------
BLP Liquidation Scenario
63
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Division Model
- -------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
======= ======= ======= ======= ===============
Outsiders
0.00 0.03 0.00 0.00 0.03
0.10 0.03 0.15 0.00 0.27
0.05 0.00 0.00 0.00 0.05
0.00 0.00 0.00 0.00 0.00
0.13 0.08 0.16 0.00 0.37
------- ------- ------- ------- ---------------
0.28 0.14 0.30 0.00 0.73
Insiders
0.04 0.01 0.33 0.00 0.38
0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ---------------
0.04 0.01 0.33 0.00 0.38
Stock Bonus Plan 0.23 0.14 0.00 0.00 0.37
Best Lock Corp 0.00 0.14 0.73 0.00 0.87
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ---------------
Sub-Total 0.55 0.43 1.36 0.00 2.34
Administrative Expenses 0.01 0.01 0.00 0.02
Corporate Taxes Paid 0.25 0.17 0.12 0 0.54
------- ------- ------- ------- ---------------
Total Payments 0.80 0.61 1.49 0.00 2.90
- ------------------------=======---------=======---------=======---------=======---------===============
Confidential
------------
BLP Liquidation Scenario
Dividend Summary Round 4
Page 29
64
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 0.87 BUL Dividend Rec(From BLC) 0.63
Administrative Expenses 1% 0.00
--------
Corporate Tax Exclusion 80% Taxable Income 0.62
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.07 Corporate Tax Rate 40%
--------
Corporate Taxes Paid 0.05
--------
BLC Dividend Paid 0.79
========
BUL Dividend Paid 0.57
========
BLC Shareholders BUL Shareholders
================================================= ===========================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.01
4,365.00 3.6181 0.03 5,671.00 1.4674 0.01
2,416.15 2.0027 0.02 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.04 16,436.00 4.2529 0.02
-------------------------- --------------------------
12,862.32 10.6615 0.08 29,005.00 7.5051 0.04
Insiders Insiders
1,686.00 1.3975 0.01 2,127.00 0.5504 0.00
1.00 0.0008 0.00 1.00 0.0003 0.00
-------------------------- --------------------------
1,687.00 1.3983 0.01 2,128.00 0.5506 0.00
Stock Bonus Plan 10,537.19 8.7342 0.07 Stock Bonus Plan 27,262.00 7.0541 0.04
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.04
Best Univeral Lock 95,556.34 79.2060 0.63 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 0.44
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------- --------------------------
Total 120,642.85 100.0000 0.79 Total 386,469.00 100.0000 0.57
- -----------------------==========================-----------------------------------------==========================
Confidential
------------
BLP Liquidation Scenario
BLC & BUL Round 5
Page 30
65
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 0.44 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.00 (From BUL) 0.00
------ ------
Taxable Income 0.44 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
------
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 0.04 Corporate Tax Exclusion 100%
------
Corporate Tax Rate 0%
FEB Dividend Paid 0.41 Corporate Taxes 0
======
BLP Dividend Paid 0.00
========
FEB Shareholders BLP Shareholders
==================================================== ==================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- -----------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.04 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.05 0.00 0.0000 0.00
-------------------------- -----------------------
132,420.00 22.1176 0.09 0.00 0.0000 0.00
Insiders
146,970.00 24.5478 0.10 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
-------------------------- -----------------------
146,971.00 24.5479 0.10 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 319,319.00 53.3345 0.22 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
-------------------------- -----------------------
598,710.00 100.000 0.41 0.00 0.0000 0.00
- -------------------------==========================-----------------------------------======================
Confidential
------------
BLP Liquidation Scenario
FEB & BLP Round 5
Page 31
66
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- -------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
======= ======= ======= ======= ===============
Outsiders
0.00 0.01 0.00 0.00 0.01
0.03 0.01 0.04 0.00 0.08
0.02 0.00 0.00 0.00 0.02
0.00 0.00 0.00 0.00 0.00
0.04 0.02 0.00 0.06
------- ------- ------- ------- ---------------
0.08 0.04 0.09 0.00 0.22
Insiders
0.01 0.00 0.10 0.00 0.11
0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ---------------
0.01 0.00 0.10 0.00 0.11
Stock Bonus Plan 0.07 0.04 0.00 0.00 0.11
Best Lock Corp 0.00 0.04 0.22 0.00 0.26
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------- ------- ------- ------- ---------------
Sub-Total 0.16 0.13 0.41 0.00 0.70
Administrative Expenses 0.00 0.00 0.00 0.01
Corporate Taxes Paid 0.07 0.05 0.04 0 0.16
------- ------- ------- ------- ---------------
Total Payments 0.24 0.18 0.44 0.00 0.87
- ------------------------=======---------=======---------=======---------=======---------===============
Confidential
------------
BLP Liquidation Scenario
Dividend Summary Round 5
Page 32
67
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- -------------------------------------------------------------------------------------------------------------------------
Value Distribution Round One Round Two Round Three Round Four Round Five % Value
========== ========= =========== ========== ========== ========
Outsiders
1.27 0.38 0.11 0.03 0.01 1.81
10.16 3.03 0.90 0.27 0.08 14.44
2.00 0.60 0.18 0.05 0.02 2.85
0.10 0.03 0.01 0.00 0.00 0.14
13.91 4.15 1.24 0.37 0.06 19.73
---------- --------- ----------- ---------- ---------- --------
27.45 8.19 2.44 0.73 0.22 39.02
Insiders
14.40 4.29 1.28 0.38 0.11 20.47
0.00 0.00 0.00 0.00 0.00 0.00
---------- --------- ----------- ---------- ---------- --------
14.40 4.29 1.28 0.38 0.11 20.47
Stock Bonus Plan 13.84 4.13 1.23 0.37 0.11 19.68
Best Lock Corp 32.63 9.73 2.90 0.87 0.26 0.26
Best Universal Lock 0.00 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
---------- --------- ----------- ---------- ---------- --------
Sub-Total 88.32 26.34 7.86 2.34 0.70 79.42
Administrative Expenses 0.93 0.28 0.08 0.02 0.01 1.32
Corporate Taxes Paid 10.76 6.01 1.79 0.54 0.16 19.26
---------- --------- ----------- ---------- ---------- --------
Total 100.00 32.63 9.73 2.90 0.87 100.00
- -------------------------==========---------=========--------===========-------==========-------==========-------========
Confidential
------------
BLP Liquidation Scenario
Exercise Summary
Page 33
68
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- --------------------------------------------------------------------------------
===========================================
| |
| WEBCO TRANSACTION |
| |
===========================================
69
PROJECT THOROUGHBRED
Long-Term Dividend Model
Piper Jaffray Inc.
Current Ownership BLC BUL FEB BLP
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
Outsiders
- ---------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
-------------------- ------------------- -------------------- ------------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- --------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 113,311.00 18.9259 13.00 13.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
-------------------- ------------------- -------------------- ------------------
1,687.00 1.3983 2,128.00 0.5506 113,312.00 18.9260 13.00 13.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.0000 0.0000
Best Lock Corp 0.0000 19,287.00 4.9906 148,925.00 24.8743 87.00 87.0000
Best Univeral Lock 95,556.34 79.2060 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.0000 0.0000
Best Lock Partners 8,787.00 2.2737 204,053.00 34.0821 0.0000
-------------------- ------------------- -------------------- ------------------
Total 120,642.85 100.0000 386,469.00 100.0000 598,710.00 100.0000 100.00 100.0000
==================== ==================== ==================== ==================
Version: 45.1
Ownership Confidential
WEBCO/FEB Scenario
Page 1
70
PROJECT THOROUGHBRED Piper Jaffray, Inc.
Long-Term Dividend Model
BLP Holdings
- ------------
Shares Per Share Value
BUL A 8,787.00 120.23 1,056,440.39
FEB 204,053.00 53.77 10,971,179.44
-------------
12,027,619.83
Divest to BLC
- -------------
BUL A 8,787.00 120.23 1,056,440.39
FEB 170,394.00 53.77 9,161,458.78
-------------
10,217,899.17 84.95%
Divest To RCB/WEBCO
- -------------------
BUL A 0.00 120.23 0.00
FEB 33,659.00 53.77 1,809,720.65
-------------
1,809,720.65 15.05%
Confidential
WEBCO/FEB Scenario
BLP Liquidation
Page 2
71
PROJECT THOROUGHBRED
Long-Term Dividend Model
Piper Jaffray Inc.
Current Ownership BLC BUL FEB BLP
- -----------------
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
Outsiders
- ---------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
-------------------- -------------------- -------------------- ------------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- --------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 146,970.00 24.5478 0.00 0.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
-------------------- -------------------- -------------------- ------------------
1,687.00 1.3983 2,128.00 0.5506 146,971.00 24.5479 0.00 0.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.0000 0.0000
Best Lock Corp 0.0000 28,074.00 7.2642 319,319.00 53.3345 0.00 0.0000
Best Univeral Lock 95,556.34 79.2060 0.0000 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.0000 0.0000
Best Lock Partners 0.00 0.0000 0.00 0.0000 0.0000
-------------------- -------------------- -------------------- ------------------
Total 120,642.85 100.0000 386,469.00 100.0000 598,710.00 100.0000 0.00 0.0000
==================== ==================== ==================== ==================
Version: 45.1
Confidential
OWNERSHIP-BLP Liquidation
WEBCO/FEB Scenario
Page 3
72
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
FEB Ownership
(All Figures Are
Post-BLP Liquidation) RCB/WEBCO
Purchase @ Adjusted
Shares Pct. 53.61 Shares Pct.
Outsiders
- ---------
Edward McLaughlin 0.00 0.00 0.00 0.00
Cede & Co. 63,921.00 10.68 63,921.00 10.68
Della & Co. 0.00 0.00 0.00 0.00
Martin Nelson & Assoc 0.00 0.00 0.00 0.00
All Other Outsiders 68,499.00 11.44 68,499.00 11.44
------------------ ------------------
132,420.00 22.12 132,420.00 22.12
Insiders
- --------
Russell Best 146,970.00 24.55 23,000.00 169,970.00 28.39
Mariea Best 1.00 0.00 1.00 0.00
------------------ ------------------
146,971.00 24.55 169,971.00 28.39
Stock Bonus Plan 0.00 0.00 0.00 0.00
Best Lock Corp 319,319.00 53.33 (23,000.00) 296,319.00 49.49
Best Univeral Lock 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00
------------------ ----------- ------------------
Total 598,710.00 100.00 0.00 598,710.00 100.00
================== =========== ==================
Adjustment to BLC Value Amount
Value of BLC 44,140,000.00
FEB Proceeds 1,233,133.58
FEB Basis 29.36 675,280.00
-------------
FEB Taxable Gain 557,853.58
Taxes Paid 43% 239,877.04
-------------
Net Cash Retained 993,256.54
-------------
Adjusted BLC Value 45,133,256.54
=============
Confidential
WEBCO/FEB Scenario
WEBCO Purchase of FEB
Page 4
73
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Current Ownership BLC BUL FEB BLP
Shares Pct. Shares Pct. Shares Pct. Shares Pct.
Outsiders
- ---------
Edward McLaughlin 0.0000 6,798.00 1.7590 0.00 0.0000 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 63,921.00 10.6765 0.0000
Della & Co. 2,416.15 2.0027 0.0000 0.00 0.0000 0.0000
Martin Nelson & Assoc 100.00 0.0829 100.00 0.0259 0.00 0.0000 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 68,499.00 11.4411 0.0000
-------------------- -------------------- -------------------- ----------------
12,862.32 10.6615 29,005.00 7.5051 132,420.00 22.1176 0.00 0.0000
Insiders
- --------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 169,970.00 28.3894 0.00 0.0000
Mariea Best 1.00 0.0008 1.00 0.0003 1.00 0.0002 0.0000
-------------------- -------------------- -------------------- ----------------
1,687.00 1.3983 2,128.00 0.5506 169,971.00 28.3895 0.00 0.0000
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 0.00 0.0000 0.0000
Best Lock Corp 0.0000 28,074.00 7.2642 296,319.00 49.4929 0.00 0.0000
Best Univeral Lock 95,556.34 79.2060 0.0000 0.00 0.0000 0.0000
Frank E. Best 0.0000 300,000.00 77.6259 0.00 0.0000 0.0000
Best Lock Partners 0.00 0.0000 0.00 0.0000 0.0000
-------------------- -------------------- -------------------- ----------------
Total 120,642.85 100.0000 386,469.00 100.0000 598,710.00 100.0000 0.00 0.0000
==================== ==================== ==================== ================
Version: 45.1
Confidential
WEBCO/FEB Scenario
Ownership-Post WEBCO
Page 5
74
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
BLC Dividend Paid 100.00 BUL Dividend Rec'd (From BLC) 79.21
======
Corporate Tax Administrative
Exclusion 80% Expenses 1% 0.54
--------
Corporate Tax Rate 43% Taxable Income 78.66
Effective Tax Rate 9% Corporate Tax 80%
Exclusion
Corporate Tax Rate 40%
Corporate Taxes Paid 6.29
--------
BUL Dividend Paid 72.37
========
BLC Shareholders BUL Shareholders
- --------------------------------------------------------- ----------------------------------------------------------------------
Shares Pct. Dividend Shares Pct. Dividend
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 1.27
4,365.00 3.6181 3.62 5,671.00 1.4674 1.06
2,416.15 2.0027 2.00 0.00 0.0000 0.00
100.00 0.0829 0.08 100.00 0.0259 0.02
5,981.17 4.9577 4.96 16,436.00 4.2529 3.08
------------------------------ ------------------------------
12,862.32 10.6615 10.66 29,005.00 7.5051 5.43
Insiders Insiders
1,686.00 1.3975 1.40 2,127.00 0.5504 0.40
1.00 0.0008 0.00 1.00 0.0003 0.00
------------------------------ ------------------------------
1,687.00 1.3983 1.40 2,128.00 0.5506 0.40
Stock Bonus Plan 10,537.19 8.7342 8.73 Stock Bonus Plan 27,262.00 7.0541 5.10
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 5.26
Best Univeral Lock 95,556.34 79.2060 79.21 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 56.18
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
------------------------------ ------------------------------
Total 120,642.85 100.0000 100.0000 Total 386,469.00 100.0000 72.37
------------------------------ ==============================
Confidential
WEBCO/FEB Scenario
BLC & BUL Flows
Page 6
75
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 56.18 BLP Dividends Rec'd (From FEB)
Administrative Expenses 1% 0.39 (From BUL)
-------
Taxable Income 55.79
Corporate Tax Exclusion 80% Administrative Expenses 0%
Corporate Tax Rate 40% Taxable Income
Corporate Taxes Paid 4.46 Corporate Tax Exclusion 100%
-------
Corporate Tax Rate 0%
FEB Dividend Paid 51.33 Corporate Taxes
=======
BLP Dividend Paid
FEB Shareholders BLP Shareholders
=========================================================================== ================================================
Shares Pct. Dividend Shares
------------------------------------ ------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00
63,921.00 10.6765 5.48 0.00
0.00 0.0000 0.00 0.00
0.00 0.0000 0.00 0.00
68,499.00 11.4411 5.87 0.00
------------------------------------ ------------
132,420.00 22.1176 11.35 0.00
Insiders Insiders
169,970.00 28.3894 14.57 0.00
1.00 0.0002 0.00 0.00
------------------------------------ ------------
169,971.00 28.3895 14.57 0.00
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00
Best Lock Corp 296,319.00 49.4929 25.40 Best Lock Corp 0.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00
------------------------------------ ------------
598,710.00 100.0000 51.33 0.00
========== ======== ===== ============
- ------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------
BLP Dividends Rec'd 0.00
0.00
-------
0.00
Administrative Expenses 0.00
-------
Taxable Income 0.00
Corporate Tax Exclusion
Corporate Tax Rate
Corporate Taxes 0
-------
BLP Dividend Paid 0.00
=======
BLP Shareholders
===================================================================
Pct. Dividend
---------------------
Outsiders
0.0000 0.00
0.0000 0.00
0.0000 0.00
0.0000 0.00
0.0000 0.00
--------------------
0.0000 0.00
Insiders
0.0000 0.00
0.0000 0.00
--------------------
0.0000 0.00
Stock Bonus Plan 0.0000 0.00
Best Lock Corp 0.0000 0.00
Best Universal Lock 0.0000 0.00
Frank E. Best 0.0000 0.00
Best Lock Partners 0.0000 0.00
--------------------
0.0000 0.00
======== ====
- -------------------------------------------------------------------
Confidential
------------
WEBCO/FEB Scenario
FEB & BLP Flows
Page 7
76
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Dividends Retained BLC BUL FEB BLP Total Dividends
================== ====== ===== ====== ===== ===============
Outsiders
- ---------
Edward McLaughlin 0.00 1.27 0.00 0.00 1.27
Cede & Co. 3.62 1.06 5.48 0.00 10.16
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson & Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.08 5.87 0.00 13.91
------ ------ ------ ----- ------
10.66 5.43 11.35 0.00 27.45
Insiders
- --------
Russell Best 1.40 0.40 14.57 0.00 16.37
Mariea Best 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ----- ------
1.40 0.40 14.57 0.00 16.37
Stock Bonus Plan 8.73 5.10 0.00 0.00 13.84
Best Lock Corp 0.00 5.26 25.40 0.00 30.66
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ----- ------
Sub-Total 20.79 16.19 51.33 0.00 88.31
Administrative Expenses 0.54 0.39 0.00 0.93
Corporate Taxes Paid 6.29 4.46 0.00 10.76
------ ------ ------ ----- ------
Total Payments 20.79 22.48 55.79 0.00 100.00
====== ====== ====== ===== ======
Confidential
Dividend Summary ------------
Page 8 WEBCO/FEB Scenario
77
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Cumulative Distribution Initial Dividend % Initial Div % TOT Dividend
======================= ================ ============= ==============
Outsiders
- ---------
Edward McLaughlin 1.27 1.27 1.77 Note:
Cede & Co. 10.16 10.16 14.12
Della & Co. 2.00 2.00 2.78 For Shareholders
Martin Nelson & Assoc. 0.10 0.10 0.14 Where DIV is the initial dividend
All Other Outsiders 13.91 13.91 19.32 percent for each owner, and BLC
------ ------ ------ is the dividend percent returned
27.45 27.45 38.13 to BLC, and TR is BLC's Effective
Insiders Tax Rate TOT is the percent of
- -------- cumulative dividends received by
Russell Best 16.37 16.37 22.74 each owner in a continous payment
Mareia Best 0.00 0.00 0.00 loop
------ ------ ------
16.37 16.37 22.74 TOT=DIV+DIV((1-TR)*BLC)+
2+
DIV((1-TR)*BLC)
3
Stock Bonus Plan 13.84 13.84 19.23 DIV((1-TR)*BLC) ...
or
Best Lock Corp 30.66 30.66 0.00 TOT=DIV/(1-((1-TR)*BLC))
Best Univeral Lock 0.00 0.00 0.00 For Corporate Taxes
Frank E. Best 0.00 0.00 0.00 TOT=DIV+DIV((1-TR)*BLC)+
2+
DIV((1-TR)*BLC)
3
Best Lock Partners 0.00 0.00 0.00 DIV((1-TR)*BLC) ...
------ ------ ------ +TR*BLC+TR*BLC((1-TR)*BLC)+
2+
TR*BLC((1-TR)*BLC)
3
Sub-Total 88.31 88.31 80.10 TR*BLC((1-TR)*BLC) ...
or
Administrative Expenses 0.93 0.93 1.29 TOT=DIV/(1-((1-TR)*BLC)) +
TR*BLC/(1-((1-TR)*BLC))
Corporate Taxes Paid 10.76 10.76 18.61
------ ------ ------
Total 100.00 100.00 100.00
====== ====== ======
Confidential
Cumulative Distribution ------------
Page 9 WEBCO/FEB Scenario
78
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
BLC Operations Value 45,133,257
==============
Share Solutions % TOT Dividend Value Shares
=============== ============== ========== =============================================================
BLC BUL FEB BLP
-------------------------------------------------------------
Outsiders
- ---------
Edward McLaughlin 1.77 798,224.84 0.00 6,798.00 0.00 0.00
Cede & Co. 14.12 6,370,917.81 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.78 1,255,827.00 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.14 63,718.42 100.00 100.00 0.00 0.00
All Other Outsiders 19.32 8,721,079.98 5,981.17 16,436.00 68,499.00 0.00
---------- -------------- -------------- ---------- ----------- -----
38.13 17,209,768.05 12,862.32 29,005.00 132,420.00 0.00
Insiders
- --------
Russell Best 22.74 10,263,302.00 1,686.00 2,127.00 169,970.00 0.00
Mariea Best 0.00 690.94 1.00 1.00 1.00 0.00
---------- -------------- -------------- ---------- ----------- -----
22.74 10,263,992.94 1,687.00 2,128.00 169,971.00 0.00
Stock Bonus Plan 19.23 8,677,967.40 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 28,074.00 296,319.00 0.00
Best Univeral Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
---------- -------------- -------------- ---------- ----------- -----
Sub-Total 80.10 36,151,728.39 120,642.85 386,469.00 598,710.00 0.00
=========================================================
Administrative Expenses 1.29 583,333.33
Corporate Taxes Paid 18.61 8,398,194.82
Total 100.00 45,133,256.54
========== ==============
Per Share Calculations:
=======================
Value BLC BUL FEB BLP
-------------- -----------------------------------------------------------
Della & Co. 1,255,827.00 = 2,416.15
Edward McLaughlin 798,224.84 = 6,798.00
Cede & Co. 6,370,917.81 = 4,365.00 5,671.00 63,921.00 0.00
= 2,268,768.43 665,891.89
= 2,934,660.33
3,436,257.48 =
Russell Best 10,263,302.00 = 1,686.00 2,127.00 169,970.00 0.00
= 876,321.55 249,753.49 9,137,226.95
= 10,263,302.00
0.00 =
===========================
Per Share Entity
519.76 BLC
117.42 BUL A&B
53.76 FEB
0.00 BLP
===========================
Confidential
Share Solutions ------------
Page 10 WEBCO/FEB Scenario
79
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------------------
BLC 519.76 BUL 117.42 FEB 53.76
============================= ============================= ============================
Shares Value Shares Value Shares Value
------------------------------ ----------------------------- ----------------------------
Outsiders
- -----------------------
Edward McLaughlin 0.00 0.00 6,798.00 798,224.84 0.00 0.00
Cede & Co. 4,365.00 2,268,768.43 5,671.00 665,891.89 63,921.00 3,436,257.48
Della & Co. 2,416.15 1,255,827.00 0.00 0.00 0.00 0.00
Martin Nelson & Assoc. 100.00 51,976.37 100.00 11,742.05 0.00 0.00
All Other Outsiders 5,981.17 3,108,794.89 16,436.00 1,929,924.03 68,499.00 3,682,361.06
------------------------------- ------------------------------ ----------------------------
12,862.32 6,685,366.69 29,005.00 3,405,782.82 132,420.00 7,118,618.54
Insiders
- -----------------------
Russell Best 1,686.00 876,321.55 2,127.00 249,753.49 169,970.00 9,137,226.95
Mariea Best 1.00 519.76 1.00 117.42 1.00 53.76
------------------------------- ------------------------------ ----------------------------
1,687.00 876,841.32 2,128.00 249,870.91 169,971.00 9,137,280.71
Stock Bonus Plan 10,537.19 5,476,848.58 27,262.00 3,201,118.82 0.00 0.00
Best Lock Corp 0.00 0.00 28,074.00 3,296,464.30 296,319.00 15,929,481.39
Best Universal Lock 95,556.34 49,666,714.31 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,226,162.62 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------------------------------- ------------------------------ ----------------------------
0.00
Sub-Total 120,642.85 62,705,770.90 386,469.00 45,379,399.47 598,710.00 32,185,380.64
========== =========== ==========
Administrative Expenses 341,280.10 242,053.23
Corporate Taxes Paid 1,653,431.33 3,946,034.74 2,798,728.75
------------- ------------- --------------
Total Outflows 64,359,202.23 49,666,714.31 35,226,162.62
============= ============= ==============
Less: Intercompany Flows
From BLC 49,666,714.31
From BUL 3,296,464.30 35,226,162.62
From FEB 15,929,481.39
From BLP 0.00
------------- ------------- --------------
19,225,945.69 49,666,714.31 35,226,162.62
Net Cash Flow 45,133,256.54 0.00 0.00
============= ============= ==============
- ---------------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------------
BLP 0.00 Total Value
=================== ================
Shares Value
-------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 798,224.84
Cede & Co. 0.00 0.00 6,370,917.81
Della & Co. 0.00 0.00 1,255,827.00
Martin Nelson & Assoc. 0.00 0.00 63,718.42
All Other Outsiders 0.00 0.00 8,721,079.98
------------------- ---------------
Insiders 0.00 0.00 17,209,768.05
- ----------------------
Russell Best 0.00 0.00 10,263,302.00
Mariea Best 0.00 0.00 690.94
------------------- ---------------
0.00 0.00 10,263,992.94
Stock Bonus Plan 0.00 0.00 8,677,967.40
Best Lock Corp 0.00 0.00 19,225,945.69
Best Universal Lock 0.00 0.00 49,666,714.31
Frank E. Best 0.00 0.00 35,226,162.62
Best Lock Partners 0.00 0.00 0.00
------------------- ---------------
Sub-Total 0.00 0.00 140,270,551.01
=======
Administrative Expenses 0.00 583,333.33
Corporate Taxes Paid 0.00 8,398,194.82
------ ---------------
0.00 149,252,079.15
Total Outflows ====== ===============
Less: Intercompany Flows
From BLC 49,666,714.31
From BUL 0.00 38,522,626.91
From FEB 0.00 15,929,481.39
From BLP 0.00
------ ---------------
0.00 104,118,822.61
Net Cash Flow 0.00 45,133,256.54
====== ===============
- ---------------------------------------------------------------------------------------------------------------------------------
Confidential
Shareholder Values ------------
Page 11 WEBCO FEB Scenario
80
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Value of Insider Holdings
- ---------------------------
Russell Best 10,263,302.00
Mariea Best 690.94
--------------
Total Insiders 10,263,992.94
Value of Outsider Holdings
- ---------------------------
Edward McLaughlin 798,224.84
Cede & Co. 6,370,917.81
Della & Co. 1,255,827.00
Martin Nelson & Assoc. 63,718.42
All Other Outsiders 8,721,079.98
--------------
17,209,768.05
Stock Bonus Plan 8,677,967.40
--------------
Total Outsiders 25,887,735.45
======================================================
Administrative Expenses 583,333.33 Note: Administrative Expenses calculated as follows:
Corporate Taxes 8,398,194.82 BUL 35,000.00
-------------- FEB 35,000.00
Total Value 45,133,256.54 BLP 0.00
=========
============== 70,000.00
Discount Rate 17%
Inflation: 5%
Present Value: 583,333.33
Confidential
Value Summary ------------
Page 12 WEBCO/FEB Scenario
81
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
BUL Adjustments
=============================================================================================
BUL Price
Shares 117.42 % BUL Value
------------- --------------------------------------
BUL A 86,469 10,153,237 22.37%
BUL B 300,000 35,226,163 77.63%
------------- --------------------------------------
386,469 45,379,399 100.00%
BUL A Preference 0.57
Required Equity Return 0.21
PV BUL Preference 2.71
Adjustment Price Distributions % BUL Value
--------------------------------------------------------------------
BUL A Adj 2.11 119.53 10,335,426 22.78%
BUL B Adj 0.61 116.81 35,043,973 77.22%
--------------------------------------
45,379,399 100.00%
Confidential
Adjustments For BUL A&B ------------
Page 13 WEBCO/FEB Scenario
82
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------------------------------
Current Ownership BLC BUL FEB
====================== ========================= ====================================== =======================
Shares Pct. Shares Pct. Pct. Adj. Shares Pct.
------------------------- -------------------------------------- -----------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.0000 6,798.00 1.7590 1.7906 0.00 0.0000
Cede & Co. 4,365.00 3.6181 5,671.00 1.4674 1.4937 63,921.00 10.6765
Della & Co. 2,416.15 2.0027 0.00 0.0000 0.0000 0.00 0.0000
Martin Nelson & Assoc. 100.00 0.0829 100.00 0.0259 0.0263 0.00 0.0000
All Other Outsiders 5,981.17 4.9577 16,436.00 4.2529 4.3292 68,499.00 11.4411
------------------------- -------------------------------------- -----------------------
12,862.32 10.6615 29,005.00 7.5051 7.6398 132,420.00 22.1176
Insiders
- ----------------------
Russell Best 1,686.00 1.3975 2,127.00 0.5504 0.5602 169,970.00 28.3894
Mariea Best 1.00 0.0008 1.00 0.0003 0.0003 1.00 0.0002
------------------------- -------------------------------------- -----------------------
1,687.00 1.3983 2,128.00 0.5506 0.5605 169,971.00 28.3895
Stock Bonus Plan 10,537.19 8.7342 27,262.00 7.0541 7.1807 0.00 0.0000
Best Lock Corp 0.00 0.0000 28,074.00 7.2642 7.3946 296,319.00 49.4929
Best Universal Lock 95,556.34 79.2060 0.00 0.0000 0.0000 0.00 0.0000
Frank E. Best 0.00 0.0000 300,000.00 77.6259 77.2244 0.00 0.0000
Best Lock Partners 0.00 0.00 0.0000 0.0000 0.00 0.0000
------------------------- -------------------------------------- -----------------------
Total 120,642.85 100.0000 386,469.00 100.0000 100.0000 598,710.00 100.0000
========================= ====================================== =======================
- -----------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------
Current Ownership BLP
====================== =================
Shares Pct.
-----------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.0000
Cede & Co. 0.00 0.0000
Della & Co. 0.00 0.0000
Martin Nelson & Assoc. 0.00 0.0000
All Other Outsiders 0.00 0.0000
------ --------
0.00 0.0000
Insiders
- ----------------------
Russell Best 0.00 0.0000
Mariea Best 0.00 0.0000
------ --------
0.00 0.0000
Stock Bonus Plan 0.00 0.0000
Best Lock Corp 0.00 0.0000
Best Universal Lock 0.00 0.0000
Frank E. Best 0.00 0.0000
Best Lock Partners 0.00 0.0000
------ --------
Total 0.00 0.0000 Version 45.1
====== ========
- ------------------------------------------------------
Confidential
Adjusted Ownership ------------
Page 14 WEBCO/FEB Scenario
83
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------
BLC Dividend Paid 100.00
=========
Corporate Tax Exclusion 80%
Corporate Tax Rate 43%
Effective Tax Rate 9%
BLC Shareholders
=======================================================================
Shares Pct. Dividend
---------------------------------
Outsiders
0.00 0.0000 0.00
4,365.00 3.6181 3.62
2,416.15 2.0027 2.00
100.00 0.0829 0.08
5,981.17 4.9577 4.96
---------------------------------
12,862.32 10.6615 10.66
Insiders
1,686.00 1.3975 1.40
1.00 0.0008 0.00
---------------------------------
1,687.00 1.3983 1.40
Stock Bonus Plan 10,537.19 8.7342 8.73
Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 95,556.34 79.2060 79.21
Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00
---------------------------------
Total 120,642.85 100.0000 100.0000
==================================
- ---------------------------------------------------------------------------------------
BUL Dividend Rec'd (From BLC) 79.21
Administrative Expenses 0.55
--------
Taxable Income 1% 78.66
Corporate Tax Exclusion
Corporate Tax Rate 80%
Corporate Taxes Paid 40% 6.29
--------
BUL Dividend Paid 72.37
========
BUL Shareholders
=======================================================================================
Outsiders Shares Adj. Pct. Dividend
---------------------------------------
6,798.00 1.7906 1.30
5,671.00 1.4937 1.08
0.00 0.0000 0.00
100.00 0.0263 0.02
16,436.00 4.3292 3.13
Insiders ---------------------------------------
29,005.00 7.6398 5.53
2,127.00 0.5602 0.41
1.00 0.0003 0.00
---------------------------------------
Stock Bonus Plan 2,128.00 0.5605 0.41
Best Lock Corp 27,262.00 7.1807 5.20
Best Universal Lock 28,074.00 7.3946 5.35
Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 300,000.00 77.2244 55.89
0.00 0.0000 0.00
Total ---------------------------------------
386,469.00 100.0000 72.37
- ----------------------------------------------------=======================================
Confidential
Adjusted BLC & BUL Flows ------------
Page 15 WEBCO/FEB Scenario
84
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------
FEB Dividend Rec'd 55.89 BLP Dividend Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.39 (From BUL) 0.00
--------- --------
Taxable Income 55.50 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 40% --------
Corporate Taxes Paid 4.44 Taxable Income 0.00
-------- Corporate Tax Exclusion 100%
Corporate Tax Rate 0%
Corporate Taxes 0
FEB Dividend Paid 51.06 --------
========
BLP Dividend Paid 0.00
========
FEB Shareholders BLP Shareholders
================================================= ===========================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 5.45 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 5.84 0.00 0.0000 0.00
-------------------------- --------------------------
132,420.00 22.1176 11.29 0.00 0.0000 0.00
Insiders Insiders
169,970.00 28.3894 14.50 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
-------------------------- --------------------------
169,971.00 28.3895 14.50 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 269,319.00 49.4929 25.27 Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------- --------------------------
598,710.00 100.0000 51.06 0.00 0.0000 0.00
=========================== ==========================
- ---------------------------------------------------------------------------------------------------------------------
Confidential
Adjusted FEB & BLP Flows ------------
Page 16 WEBCO/FEB Scenario
85
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- --------------------------------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
======================= ======= ======= ======= ======= ===============
Outsiders
- -----------------------
Edward McLaughlin 0.00 1.30 0.00 0.00 1.30
Cede & Co. 3.62 1.08 5.45 0.00 10.15
Della & Co. 2.00 0.00 0.00 0.00 2.00
Martin Nelson & Assoc. 0.08 0.02 0.00 0.00 0.10
All Other Outsiders 4.96 3.13 5.84 0.00 13.93
------- ------ ------ ----- ------
10.66 5.53 11.29 0.00 27.48
Insiders
- ----------------------
Russell Best 1.40 0.41 14.50 0.00 16.30
Mariea Best 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ----- ------
1.40 0.41 14.50 0.00 16.30
Stock Bonus Plan 8.73 5.20 0.00 0.00 13.93
Best Lock Corp 0.00 5.35 25.27 0.00 30.62
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ----- ------
Sub-Total 20.79 16.48 51.06 0.00 88.34
Administrative Expenses 0.55 0.39 0.00 0.93
Corporate Taxes Paid 6.29 4.44 0 10.73
------- ------ ------ ----- ------
Total Payments 20.79 22.77 55.50 0.00 100.00
======= ====== ====== ===== ======
- --------------------------------------------------------------------------------------------------------------------------------
Confidential
Adjusted Dividend Summary ------------
Page 17 WEBCO/FEB Scenario
86
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
Cumulative Distribution Initial Dividend % Initial Div % TOT Dividend
========================= ================ ============= ===============
Outsiders
- -------------------------
Edward McLaughlin 1.30 1.30 1.80 ==============================================
Cede & Co. 10.15 10.15 14.10 Note:
Della & Co. 2.00 2.00 2.78
Martin Nelson & Assoc. 0.10 0.10 0.14 For Shareholders
All Other Outsiders 13.93 13.93 19.35 Where DIV is the initial dividend percent for
---------- --------- --------- each owner, and BLC is the dividend percent
27.48 27.48 38.17 returned to BLC, and TR is BLC's Effective
Insiders Tax Rate TOT is the percent of cumulative
- ------------------------- dividends received by each owner in a
Russell Best 16.30 16.30 22.63 continous payment loop
Mariea Best 0.00 0.00 0.00
---------- --------- --------- TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC)(2)+
16.30 16.30 22.64 DIV((1-TR)*BLC)(3)...
or
Stock Bonus Plan 13.93 13.93 19.35 TOT=DIV/(1-((1-TR)*BLC))
Best Lock Corp 30.62 30.62 0.00 For Corporate Taxes
Best Universal Lock 0.00 0.00 0.00 TOT=DIV+DIV((1-TR)*BLC)+DIV((1-TR)*BLC)(2)+
DIV((1-TR)*BLC)(3)...
Frank E. Best 0.00 0.00 0.00 +TR*BLC+TR*BLC((1-TR)*BLC)+
TR*BLC((1-TR)*BLC)(2)+
Best Lock Partners 0.00 0.00 0.00 TR*BLC((1-TR)*BLC)(3)...
---------- --------- --------- or
TOT=DIV/(1-((1-TR)*BLC)) +
Sub-Total 88.34 88.34 80.15 TR*BLC/(1-((1-TR)*BLC))
==============================================
Administrative Expenses 0.93 0.93 1.29
Corporate Taxes Paid 10.73 10.73 18.56
---------- --------- ---------
Total 100.00 100.00 100.00
========== ========= =========
- -----------------------------------------------------------------------------------------------------------------------------------
Confidential
Adj. Cumulative Distribution ------------
Page 18 WEBCO/FEB Scenario
87
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------------------
==============
BLC Operations Value 45,133,257
==============
Share Solutions % TOT Dividend Value Shares
====================== ============== =============== ====================================================
BLC BUL FEB BLP
----------------------------------------------------
Outsiders
- ----------------------
Edward McLaughlin 1.80 812,140.61 0.00 6,798.00 0.00 0.00
Cede & Co. 14.10 6,361,880.74 4,365.00 5,671.00 63,921.00 0.00
Della & Co. 2.78 1,255,220.07 2,416.15 0.00 0.00 0.00
Martin Nelson & Assoc. 0.14 63,898.01 100.00 100.00 0.00 0.00
All Other Outsiders 19.35 8,732,273.17 5,981.17 16,436.00 68,499.00 0.00
-------------- --------------- -----------------------------------------------------
38.17 17,225,412.59 12,862.32 29,005.00 132,420.00 0.00
Insiders
- ----------------------
Russell Best 22.63 10,215,249.57 1,686.00 2,127.00 169,970.00 0.00
Mariea Best 0.00 692.43 1.00 1.00 1.00 0.00
-------------- --------------- -----------------------------------------------------
22.64 10,215,942.00 1,687.00 2,128.00 169,971.00 0.00
Stock Bonus Plan 19.35 8,731,126.83 10,537.19 27,262.00 0.00 0.00
Best Lock Corp 0.00 0.00 0.00 28,074.00 296,319.00 0.00
Best Universal Lock 0.00 0.00 95,556.34 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 300,000.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
-------------- --------------- -----------------------------------------------------
Sub-Total 80.15 36,172,481.41 120,642.85 386,469.00 598,710.00 0.00
=====================================================
Administrative Expenses 1.29 583,333.33
Corporate Taxes Paid 18.56 8,377,441.80
-------------- ---------------
Total 100.00 45,133,256.54
============== ===============
Per Share Calculations:
=======================
Value BLC BUL FEB BLP
--------------- --------------------------------------------------------
Della & Co. 1,255,220.07 = 2,416.15
Edward McLaughlin 812,140.61 = 6,798.00
Cede & Co. 6,361,880.74 = 4,365.00 5,671.00 63,921.00 0.00
= 2,267,671.96 677,500.64
= 2,945,172.61
3,416,708.13 =
Russell Best 10,215,249.57 = 1,686.00 2,127.00 169,970.00 0.00
= 875,898.04 254,107.54 9,085,243.99
= 10,215,249.57
0.00 =
- ---------------------------------------------------------------------------------------------------------------------------------
=================
Per Share Entity
519.51 BLC
119.47 BUL A BUL A 86,469 10,330,242 22.78%
116.75 BUL B BUL B 300,000 35,026,397 77.22%
- --------- -------------------
2.71 45,356,639 100.00%
53.45 FEB
0.00 BLP
- ------------------------------------------------------------
Confidential
Adjusted Share Solutions ------------
Page 19 WEBCO/FEB Scenario
88
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------------------
BUL A 119.47
BLC 519.51 BUL B 116.75 FEB 53.45
============================= ============================= ============================
Shares Value Shares Value Shares Value
------------------------------ ----------------------------- ----------------------------
Outsiders
- -----------------------
Edward McLaughlin 0.00 0.00 6,798.00 812,140.61 0.00 0.00
Cede & Co. 4,365.00 2,267,671.96 5,671.00 677,500.64 63,921.00 3,416,708.13
Della & Co. 2,416.15 1,255,220.07 0.00 0.00 0.00 0.00
Martin Nelson & Assoc. 100.00 51,951.25 100.00 11,946.76 0.00 0.00
All Other Outsiders 5,981.17 3,107,292.44 16,436.00 1,963,569.14 68,499.00 3,661,411.59
------------------------------- ------------------------------ ----------------------------
12,862.32 6,682,135.72 29,005.00 3,465,157.14 132,420.00 7,078,119.72
Insiders
- -----------------------
Russell Best 1,686.00 875,898.04 2,127.00 254,107.54 169,970.00 9,085,243.99
Mariea Best 1.00 519.51 1.00 119.47 1.00 53.45
------------------------------- ------------------------------ ----------------------------
1,687.00 876,417.55 2,128.00 254,227.01 169,971.00 9,085,297.44
Stock Bonus Plan 10,537.19 5,474,201.68 27,262.00 3,256,925.15 0.00 0.00
Best Lock Corp 0.00 0.00 28,074.00 3,353,932.83 296,319.00 15,838,856.35
Best Universal Lock 95,556.34 49,642,710.89 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 300,000.00 35,026,396.54 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------------------------------- ------------------------------ ----------------------------
0.00
Sub-Total 120,642.85 62,675,465.84 386,469.00 45,356,638.67 598,710.00 32,002,273.51
========== =========== ==========
Administrative Expenses 342,016.69 241,316.64
Corporate Taxes Paid 1,650,579.87 3,944,055.54 2,782,806.39
------------- ------------- --------------
Total Outflows 64,326,045.71 49,642,710.89 35,026,396.54
============= ============= ==============
Less: Intercompany Flows
From BLC 49,642,710.89
From BUL 3,353,932.83 35,026,396.54
From FEB 15,838,856.35
From BLP 0.00
------------- ------------- --------------
19,192,789.17 49,642,710.89 35,026,396.54
Net Cash Flow 45,133,256.54 0.00 0.00
============= ============= ==============
- ---------------------------------------------------------------------------------------------------------------------------------
<Caption
- -------------------------------------------------------------------------------------
BLP 0.00 Total Value
=================== ================
Shares Value
-------------------
Outsiders
- ----------------------
Edward McLaughlin 0.00 0.00 812,140.61
Cede & Co. 0.00 0.00 6,361,880.74
Della & Co. 0.00 0.00 1,255,220.07
Martin Nelson & Assoc. 0.00 0.00 63,898.01
All Other Outsiders 0.00 0.00 8,732,273.17
------------------- ---------------
Insiders 0.00 0.00 17,225,412.59
- ----------------------
Russell Best 0.00 0.00 10,215,249.57
Mariea Best 0.00 0.00 692.43
------------------- ---------------
0.00 0.00 10,215,942.00
Stock Bonus Plan 0.00 0.00 8,731,126.83
Best Lock Corp 0.00 0.00 19,192,789.17
Best Universal Lock 0.00 0.00 49,642,710.89
Frank E. Best 0.00 0.00 35,026,396.54
Best Lock Partners 0.00 0.00 0.00
------------------- ---------------
Sub-Total 0.00 0.00 140,034,378.02
=======
Administrative Expenses 0.00 583,333.33
Corporate Taxes Paid 0.00 8,377,441.80
------ ---------------
0.00 148,995,153.14
Total Outflows ====== ===============
Less: Intercompany Flows
From BLC 49,642,710.89
From BUL 0.00 38,380,329.37
From FEB 0.00 15,838,856.35
From BLP 0.00
------ ---------------
0.00 103,861,896.60
Net Cash Flow 0.00 45,133,256.54
====== ===============
- -------------------------------------------------------------------------------------
Confidential
Adjusted Shareholder Values ------------
Page 20 WEBCO/FEB Scenario
89
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Value of Insider Holdings
- --------------------------
Russell Best 10,215,249.57
Mariea Best 692.43
-------------
Total Insiders 10,215,942.00
Value of Outsider Holdings
- ---------------------------
Edward McLaughlin 812,140.61
Cede & Co. 6,361,880.74
Della & Co. 1,255,220.07
Martin Nelson & Assoc. 63,898.01
All Other Outsiders 8,732,273.17
-------------
17,225,412.59
Stock Bonus Plan 8,731,126.83
-------------
Total Outsiders 25,956,539.42
Administrative Expenses 583,333.33
Corporate Taxes 8,377,441.80
-------------
Total Value 45,133,256.54
=============
Confidential
Adjusted Value Summary ------------
Page 21 WEBCO/FEB Scenario
90
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
Post-WEBCO FEB Pre-WEBCO
Value Holdings Purchase Adjustment Adjusted Values Purchase
==================== =============== ============ =============== ===============
Insiders
- --------------------
Russell Best 10,215,249.57 (1,233,133.58) 8,982,115.99 9,013,089.31
Mariea Best 692.43 692.43 694.50
-------------- -------------- -------------
Total Insiders 10,215,942.00 8,982,808.42 9,013,783.80
Outsiders
- --------------------
Edward McLaughlin 812,140.61 812,140.61 814,533.73
Cede & Co. 6,361,880.74 6,361,880.74 6,381,022.48
Della & Co. 1,255,220.07 1,255,220.07 1,258,962.38
Martin Nelson & Assoc. 63,898.01 63,898.01 64,088.10
All Other Outsiders 8,732,273.17 8,732,273.17 8,758,451.54
-------------- -------------- -------------
17,225,412.59 17,225,412.59 17,277,058.23
Stock Bonus Plan 8,731,126.83 8,731,126.83 8,757,044.74
-------------- -------------- -------------
Total Outsiders 25,956,539.42 25,956,539.42 26,034,102.96
Administrative Expenses 583,333.33 583,333.33 583,333.33
Corporate Taxes 8,377,441.80 239,877.04 8,617,318.84 8,508,779.91
-------------- ------------- -------------- -------------
Total Value 45,133,256.54 (993,256.54) 44,140,000.00 44,140,000.00
============== ============= ============== =============
TOT Tax Taxes Paid FEB Adj. Taxes Paid Adj.
-----------------------------------------------------------------
Post-WEBCO BLC Value 45,133,257 18.56 8,377,441.80 239,877.04 8,617,318.84
Pre-WEBCO BLC Value 44,140,000 19.28 8,508,779.91 8,508,779.91
----------------------------------------------------
(131,338.11) 239,877.04 108,538.93
Due to Change in TOT Tax 44,140,000 -0.72 (315,702.13)
Due to Change in Value 993,257 18.56 184,364.03 =================================
Due to Cap Gains 557,853.58 0.43 239,877.04 Note:
--------------
108,538.93 WEBCO purchase of FEB shares
reduced BLC return on $100
hypothetical dividend from
$32.58 to 30.66 which in turn
reduced the TOT tax from 19.29 to
18.61, (less money looping
through the structure).
=================================
- -----------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------
Difference
===========
Insiders
- --------------------
Russell Best (30,973.32)
Mariea Best (2.06)
------------
Total Insiders (30,975.38)
Outsiders
- --------------------
Edward McLaughlin (2,393.13)
Cede & Co. (19,141.75)
Della & Co. (3,742.31)
Martin Nelson & Assoc. (190.09)
All Other Outsiders (26,178.37)
------------
(51,645.64)
Stock Bonus Plan (25,917.91)
------------
Total Outsiders (77,563.55)
Administrative Expenses (0.00)
Corporate Taxes 108,538.93
------------
Total Value (0.00)
============
- -------------------------------------------------------
Confidential
FEB Purchase Reconciliation ------------
Page 22 WEBCO/FEB Scenario
91
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
BLC Dividend Rec'd 30.66
Corporate Tax Exclusion 80%
Corporate Tax Rate 43%
Corporate Tax Paid 2.64
-------
BLC Dividend Paid 28.02
=======
BLC Shareholders
=======================================================================
Shares Pct. Dividend
----------------------------------
Outsiders
0.00 0.0000 0.00
4,365.00 3.6181 1.01
2,416.15 2.0027 0.56
100.00 0.0829 0.02
5,981.17 4.9577 1.39
----------------------------------
12,862.32 10.6615 2.99
Insiders
1,686.00 1.3975 0.39
1.00 0.0008 0.00
----------------------------------
1,687.00 1.3983 0.39
Stock Bonus Plan 10,537.19 8.7342 2.45
Best Lock Corp 0.00 0.0000 0.00
Best Universal Lock 95,556.34 79.2060 22.20
Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00
----------------------------------
Total 120,642.85 100.0000 28.02
- ------------------------------------===================================
- --------------------------------------------------------------------------------
BUL Dividend Rec'd (From BLC) 22.20
Administrative Expenses 1% 0.15
--------
Taxable Income 80% 22.04
Corporate Tax Exclusion
Corporate Tax Rate 40%
Corporate Taxes Paid 1.76
--------
BUL Dividend Paid 20.28
========
BUL Shareholders
=======================================================================================
Shares Pct. Dividend
---------------------------------------
Outsiders
6,798.00 1.7590 0.36
5,671.00 1.4674 0.30
0.00 0.0000 0.00
100.00 0.0259 0.01
16,436.00 4.2529 0.86
---------------------------------------
29,005.00 7.5051 1.52
Insiders 0.00
2,127.00 0.5504 0.11
1.00 0.0003 0.00
---------------------------------------
2,128.00 0.5506 0.11
Stock Bonus Plan 27,262.00 7.0541 1.43
Best Lock Corp 28,074.00 7.2642 1.47
Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 300,000.00 77.6259 15.74
Best Lock Partners 0.00 0.0000 0.00
---------------------------------------
Total 386,469.00 100.0000 20.28
- ------------------------------------------------=======================================
Confidential
BLC & BUL ROUND 2 ------------
Page 23 WEBCO/FEB Scenario
92
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------------------
FEB Dividend Rec'd (From BUL) 15.74 BLP Dividend Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.11 (From BUL) 0.00
--------- --------
Taxable Income 15.63 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
Corporate Tax Rate 43% --------
Corporate Taxes Paid 1.25 Taxable Income 0.00
-------- Corporate Tax Exclusion 100%
Corporate Tax Rate 0%
Corporate Taxes 0
FEB Dividend Paid 14.38 --------
========
BLP Dividend Paid 0.00
========
FEB Shareholders BLP Shareholders
================================================= ===========================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------- --------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 1.54 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 1.65 0.00 0.0000 0.00
-------------------------- --------------------------
132,420.00 22.1176 3.18 0.00 0.0000 0.00
Insiders Insiders
169,970.00 28.3894 4.08 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
-------------------------- --------------------------
169,971.00 28.3895 4.08 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 Stock Bonus Plan 0.00 0.0000 0.00
Best Lock Corp 296,319.00 49.4929 7.12 Best Lock Corp 0.00 0.0000 0.00
Best Univeral Lock 0.00 0.0000 0.00 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------- --------------------------
598,710.00 100.0000 14.38 0.00 0.0000 0.00
=========================== ==========================
- ---------------------------------------------------------------------------------------------------------------------
Confidential
FEB & BLP Round 2 ------------
Page 24 WEBCO/FEB Scenario
93
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
===== ====== ===== ===== ===============
Outsiders
0.00 0.36 0.00 0.00 0.36
1.01 0.30 1.54 0.00 2.85
0.56 0.00 0.00 0.00 0.56
0.02 0.01 0.00 0.00 0.03
1.39 0.86 1.65 0.00 3.90
----- ----- ----- ----- ------
2.99 1.52 3.18 0.00 7.69
Insiders
0.39 0.11 4.08 0.00 4.59
0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ------
0.39 0.11 4.08 0.00 4.59
Stock Bonus Plan 2.45 1.43 0.00 0.00 3.88
Best Lock Corp 0.00 1.47 7.12 0.00 8.59
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
----- ----- ----- ----- ------
Sub-Total 5.83 4.54 14.38 0.00 24.75
Administrative Expenses 0.15 0.11 0.00 0.26
Corporate Taxes Paid 2.64 1.76 1.25 0.00 5.65
----- ----- ----- ----- ------
Total Payments 8.46 6.45 15.74 0.00 30.66
===== ===== ===== ===== ======
- -----------------------------------------------------------------------------------------------------
Confidential
Dividend Summary Round 2 ------------
Page 25 WEBCO/FEB Scenario
94
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 8.59 BUL Dividend Rec'd (From BLC) 6.22
Administrative Expenses 1% 0.04
-------
Corporate Tax Exclusion 80% Taxable Income 6.18
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.74 Corporate Tax Rate 40%
------
Corporate Taxes Paid 0.49
--------
BLC Dividend Paid 7.85
======
BUL Dividend Paid 5.68
========
BLC Shareholders BUL Shareholders
=============================================================== ============================================================
Shares Pct. Dividend Shares Pct. Dividend
---------------------------------- ------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.10
4,365.00 3.6181 0.28 5,671.00 1.4674 0.08
2,416.15 2.0027 0.16 0.00 0.0000 0.00
100.00 0.0829 0.01 100.00 0.0259 0.00
5,981.17 4.9577 0.39 16,436.00 4.2529 0.24
----------------------------------- ------------------------------
12,862.32 10.6615 0.84 29,005.00 7.5051 0.43
Insiders Insiders
1,686.00 1.3975 0.11 2,127.00 0.5504 0.03
1.00 0.0008 0.00 1.00 0.0003 0.00
----------------------------------- ------------------------------
1,687.00 1.3983 0.11 2,128.00 0.5506 0.03
Stock Bonus Plan 10,537.19 8.7342 0.69 Stock Bonus Plan 27,262.00 7.0541 0.40
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.41
Best Universal Lock 95,556.34 79.2060 6.22 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 4.41
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
----------------------------------- ------------------------------
Total 120,642.85 100.0000 7.85 Total 386,469.00 100.0000 5.68
- -----------------------------==================================----------------------------------==============================
Confidential
------------
WEBCO/FFB Scenario
BLC & BUL Round 3
Page 26
95
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
(From BUL)
- ---------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 4.41 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.03 (From BUL) 0.00
------ ------
Taxable Income 4.38 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
------
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 0.35 Corporate Tax Exclusion 100%
------
Corporate Tax Rate 0%
FEB Dividend Paid 4.03 Corporate Taxes 0
======
BLP Dividend Paid 0.00
======
FEB Shareholders BLP Shareholders
=========================================================== ================================================================
Shares Pct. Dividend Shares Pct. Dividend
--------------------------------- -----------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.43 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.46 0.00 0.0000 0.00
--------------------------------- -----------------------------------
132,420.00 22.1176 0.89 0.00 0.0000 0.00
Insiders
169,970.00 28.3894 1.14 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
--------------------------------- -----------------------------------
169,971.00 28.3895 1.14 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 296,319.00 49.4929 2.00 0.00 0.0000 0.00
Best Universal Lock 0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
--------------------------------- -----------------------------------
598,710.00 100.0000 4.03 0.00 0.0000 0.00
- ---------------------- -==================================-------------------------------------===================================
Confidential
------------
WEBCO/FEB Scenario
FEB & BLP Round 3
Page 27
96
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
====== ===== ====== ===== ===============
Outsiders
0.00 0.10 0.00 0.00 0.10
0.28 0.08 0.43 0.00 0.80
0.16 0.00 0.00 0.00 0.16
0.01 0.00 0.00 0.00 0.01
0.39 0.24 0.46 0.00 1.09
------ ------ ------ ------ ------
0.84 0.43 0.89 0.00 2.16
Insiders
0.11 0.03 1.14 0.00 1.29
0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
0.11 0.03 1.14 0.00 1.29
Stock Bonus Plan 0.69 0.40 0.00 0.00 1.09
Best Lock Corp 0.00 0.41 2.00 0.00 2.41
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------ ------
Sub-Total 1.63 1.27 4.03 0.00 6.94
Administrative Expenses 0.04 0.03 0.00 0.07
Corporate Taxes Paid 0.74 0.49 0.35 0 1.58
------ ------ ------ ------ ------
Total Payments 2.37 1.81 4.41 0.00 8.59
====== ====== ====== ====== ======
- -------------------------------------------------------------------------------------------------
Confidential
Dividend Summary Round 3 ------------
Page 28 WEBCO/FEB Scenario
97
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- -----------------------------------------------------------------------------------------------------------------------------------
2.41 BUL Dividend Rec'd (From BLC) 1.74
BLC Dividend Paid Administrative Expenses 1% 0.01
-------
Corporate Tax Exclusion 80% Taxable Income 1.73
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.21 Corporate Tax Rate 40%
-----
Corporate Taxes Paid 0.14
-------
BLC Dividend Paid 2.20
=====
BUL Dividend Paid 1.59
=======
BLC Shareholders BUL Shareholders
====================================================== ==========================================================================
Shares Pct. Dividend Shares Pct. Dividend
-------------------------------- ------------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.03
4,365.00 3.6181 0.08 5,671.00 1.4674 0.02
2,416.15 2.0027 0.04 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.11 16,436.00 4.2529 0.07
-------------------------------- ------------------------------------
12,862.32 10.6615 0.23 29,005.00 7.5051 0.12
Insiders Insiders
1,686.00 1.3975 0.03 2,127.00 0.5504 0.01
1.00 0.0008 0.00 1.00 0.0003 0.00
-------------------------------- ------------------------------------
1,687.00 1.3983 0.03 2,128.00 0.5506 0.01
Stock Bonus Plan 10,537.19 8.7342 0.19 Stock Bonus Plan 27,262.00 7.0541 0.11
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.12
Best Universal Lock 95,556.34 79.2060 1.74 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 1.24
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
-------------------------------- ------------------------------------
Total 120,642.85 100.0000 2.20 Total 386,469.00 100.0000 1.59
- ----------------------==============================-------------------------------------------=================================
Confidential
------------
WEBCO/FEB Scenario
BLC & BUL Round 4
Page 29
98
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec'd (From BUL) 1.24 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.01 (From BUL) 0.00
------- -------
Taxable Income 1.23 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
-------
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 0.10 Corporate Tax Exclusion 100%
-------
Corporate Tax Rate 0%
FEB Dividend Paid 1.13 Corporate Taxes 0
=======
BLP Dividend Paid 0.00
=======
FEB Shareholders BLP Shareholders
=========================================================== ====================================================================
Shares Pct. Dividend Shares Pct. Dividend
---------------------------------- ---------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.12 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.13 0.00 0.0000 0.00
---------------------------------- ---------------------------------
132,420.00 22.1176 0.25 0.00 0.0000 0.00
Insiders
169,970.00 28.3894 0.32 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
---------------------------------- ---------------------------------
169,971.00 28.3895 0.32 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 296,319.00 49.4929 0.56 0.00 0.0000 0.00
Best Universal Lock
0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
---------------------------------- ---------------------------------
598,710.00 100.0000 1.13 0.00 0.0000 0.00
- -----------------------=================================-----------------------------------------================================
Confidential
------------
WEBCO/FEB Scenario
FEB & BLP Round 4
Page 30
99
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ---------------------------------------------------------------------------------------------------------
Dividends Retained BLC BUL FEB BLP Total Dividends
====== ====== ===== ===== ===============
Outsiders
0.00 0.03 0.00 0.00 0.03
0.08 0.02 0.12 0.00 0.22
0.04 0.00 0.00 0.00 0.04
0.00 0.00 0.00 0.00 0.00
0.11 0.07 0.13 0.00 0.31
------ ------ ------ ------- --------
0.23 0.12 0.25 0.00 0.60
Insiders
0.03 0.01 0.32 0.00 0.36
0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------- --------
0.03 0.01 0.32 0.00 0.36
Stock Bonus Plan 0.19 0.11 0.00 0.00 0.30
Best Lock Corp 0.00 0.12 0.56 0.00 0.67
Best Universal Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------ ------ ------ ------- --------
Sub-Total 0.46 0.36 1.13 0.00 1.94
Administrative Expenses 0.01 0.01 0.00 0.02
Corporate Taxes Paid 0.21 0.14 0.10 0 0.44
------ ------ ------ ------- --------
Total Payments 0.66 0.51 1.24 0.00 2.41
====== ====== ====== ======= ========
- ---------------------------------------------------------------------------------------------------------
Dividend Summary Round 4 Confidential
Page 31 ------------
WEBCO/FEB Scenario
100
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
BLC Dividend Paid 0.67 BUL Dividend Rec'd (From BLC) 0.49
Administrative Expenses 1% 0.00
----
Corporate Tax Exclusion 80% Taxable Income 0.49
Corporate Tax Rate 43% Corporate Tax Exclusion 80%
Corporate Taxes Paid 0.06 Corporate Tax Rate 40%
---- Corporate Taxes Paid 0.49
----
BLC Dividend Paid 0.62
====
BUL Dividend Paid 0.45
====
BLC Shareholders BUL Shareholders
====================================================== ==========================================================================
Shares Pct. Dividend Shares Pct. Dividend
---------------------------------- ------------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 6,798.00 1.7590 0.01
4,365.00 3.6181 0.02 5,671.00 1.4674 0.01
2,416.15 2.0027 0.01 0.00 0.0000 0.00
100.00 0.0829 0.00 100.00 0.0259 0.00
5,981.17 4.9577 0.03 16,436.00 4.2529 0.02
---------------------------------- ------------------------------------
12,862.32 10.6615 0.07 29,005.00 7.5051 0.03
Insiders Insiders
1,686.00 1.3975 0.01 2,127.00 0.5504 0.00
1.00 0.0008 0.00 1.00 0.0003 0.00
---------------------------------- ------------------------------------
1,687.00 1.3983 0.01 2,128.00 0.5506 0.00
Stock Bonus Plan 10,537.19 8.7342 0.05 Stock Bonus Plan 27,262.00 7.0541 0.03
Best Lock Corp 0.00 0.0000 0.00 Best Lock Corp 28,074.00 7.2642 0.03
Best Universal Lock 95,556.34 79.2060 0.49 Best Universal Lock 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 Frank E. Best 300,000.00 77.6259 0.35
Best Lock Partners 0.00 0.0000 0.00 Best Lock Partners 0.00 0.0000 0.00
---------------------------------- ------------------------------------
Total 120,642.85 100.0000 0.62 Total 386,469.00 100.0000 0.45
- --------------------=================================-------------------------------------------====================================
Confidential
------------
WEBCO/FEB Scenario
BLC & BUL Round 5
Page 32
101
Piper Jaffray Inc.
PROJECT THOROUGHBRED
Long-Term Dividend Model
- ----------------------------------------------------------------------------------------------------------------------------
FEB Dividends Rec (From BUL) 0.35 BLP Dividends Rec'd (From FEB) 0.00
Administrative Expenses 1% 0.00 (From BUL) 0.00
------- -------
Taxable Income 0.34 0.00
Corporate Tax Exclusion 80% Administrative Expenses 0% 0.00
-------
Corporate Tax Rate 40% Taxable Income 0.00
Corporate Taxes Paid 0.03 Corporate Tax Exclusion 100%
-------
Corporate Tax Rate 0%
FEB Dividend Paid 0.32 Corporate Taxes 0
=======
BLP Dividend Paid 0.00
=======
FEB Shareholders BLP Shareholders
====================================================== ===============================================================
Shares Pct. Dividend Shares Pct. Dividend
---------------------------------- -------------------------------------------
Outsiders Outsiders
0.00 0.0000 0.00 0.00 0.0000 0.00
63,921.00 10.6765 0.03 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
0.00 0.0000 0.00 0.00 0.0000 0.00
68,499.00 11.4411 0.04 0.00 0.0000 0.00
---------------------------------- -------------------------------------------
132,420.00 22.1176 0.07 0.00 0.0000 0.00
Insiders
169,970.00 28.3894 0.09 0.00 0.0000 0.00
1.00 0.0002 0.00 0.00 0.0000 0.00
---------------------------------- -------------------------------------------
169,971.00 28.3895 0.09 0.00 0.0000 0.00
Stock Bonus Plan 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Corp 296,319.00 49.4929 0.16 0.00 0.0000 0.00
Best Universal Lock
0.00 0.0000 0.00 0.00 0.0000 0.00
Frank E. Best 0.00 0.0000 0.00 0.00 0.0000 0.00
Best Lock Partners 0.00 0.0000 0.00 0.00 0.0000 0.00
---------------------------------- -------------------------------------------
598,710.00 100.0000 1.32 0.00 0.0000 0.00
- --------------------=================================-----------------------------------------=============================
Confidential
------------
WEBCO/FFB Scenario
FEB & BLP Round 5
Page 33
102
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Dividends Retained BLC BUL FEB BLP Total Dividends
====== ====== ===== ===== ===============
Outsiders
0.00 0.01 0.00 0.00 0.01
0.02 0.01 0.03 0.00 0.06
0.01 0.00 0.00 0.00 0.01
0.00 0.00 0.00 0.00 0.00
0.03 0.02 0.00 0.05
------ ----- ----- ----- -----
0.07 0.03 0.07 0.00 0.17
Insiders
0.01 0.00 0.09 0.00 0.10
0.00 0.00 0.00 0.00 0.00
------ ----- ----- ----- -----
0.01 0.00 0.09 0.00 0.10
Stock Bonus Plan 0.05 0.03 0.00 0.00 0.09
Best Lock Corp 0.00 0.03 0.16 0.00 0.19
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00
------ ----- ----- ----- -----
Sub-Total 0.13 0.10 0.32 0.00 0.54
Administrative Expenses 0.00 0.00 0.00 0.01
Corporate Taxes Paid 0.06 0.04 0.03 0 0.12
------ ----- ----- ----- -----
Total Payments 0.19 0.14 0.35 0.00 0.67
====== ===== ===== ===== =====
Confidential
Dividend Summary Round 5 ------------
Page 34 WEBCO/FEB Scenario
103
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
Value Distribution Round One Round Two Round Three Round Four Round Five % Value
========= ========= =========== ========== ========== =========
Outsiders
1.27 0.36 0.10 0.03 0.01 1.77
10.16 2.85 0.80 0.22 0.06 14.09
2.00 0.56 0.16 0.04 0.01 2.78
0.10 0.03 0.01 0.00 0.00 0.14
13.91 3.90 1.09 0.31 0.05 19.25
------- ------ ------ ------ ------ ------
27.45 7.69 2.16 0.60 0.17 38.07
Insiders
16.37 4.59 1.29 0.36 0.10 22.70
0.00 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ------ ------ ------
16.37 4.59 1.29 0.36 0.10 22.70
Stock Bonus Plan 13.84 3.88 1.09 0.30 0.09 19.19
Best Lock Corp 30.66 8.59 2.41 0.67 0.19 0.19
Best Univeral Lock 0.00 0.00 0.00 0.00 0.00 0.00
Frank E. Best 0.00 0.00 0.00 0.00 0.00 0.00
Best Lock Partners 0.00 0.00 0.00 0.00 0.00 0.00
------- ------ ------ ------ ------ ------
Sub-Total 88.31 24.75 6.94 1.94 0.54 80.15
Administrative Expenses 0.93 0.26 0.07 0.02 0.01 1.29
Corporate Taxes Paid 10.76 5.65 1.58 0.44 0.12 18.56
------- ------ ------ ------ ------ ------
Total 100.00 30.66 8.59 2.41 0.67 100.00
======= ====== ====== ======= ====== ======
Confidential
Exercise Summary ------------
Page 35 WEBCO/FEB Scenario
104
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- --------------------------------------------------------------------------------
=================================
COLT VS. THOROUGHBRED
=================================
105
PROJECT THOROUGHBRED Piper Jaffray Inc.
Long-Term Dividend Model
- ------------------------------------------------------------------------------------------------------------------------------------
| | Pre-BLP | | Post-BLP | | Liquidation | | Post-WEBCO | | WEBCO | | Total
Value Holdings | | Liquidation | | Liquidation | | Impact | | Purchase | | Impact | | Change
================== ================= ================ ================ ================ =========== ===============
Insiders
Russell Best 8,790,404.22 9,013,089.31 222,685.09 8,982,115.99 (30,973.32) 191,711.77
Mariea Best 697.20 694.50 (2.71) 692.43 (2.06) (4.77)
------------- ------------- ---------- ------------- ---------- -----------
Total Insiders 8,791,101.42 9,013,783.80 222,682.38 8,982,808.42 (30,975.38) 191,707.00
Outsiders
- ------------------
Edward McLaughlin 817,307.59 814,533.73 (2,773.86) 812,140.61 (2,393.13) (5,166.98)
Cede & Co. 6,402,419.13 6,381,022.48 (21,396.65) 6,361,880.74 (19,141.75) (40,538.40)
Della & Co. 1,264,153.48 1,258,962.38 (5,191.10) 1,255,220.07 (3,742.31) (8,933.41)
Martin Nelson &
Assoc. 64,343.75 64,088.10 (255.65) 63,898.01 (190.09) (445.74)
All Other Outsiders 8,788,408.11 8,758,451.54 (29,956.58) 8,732,273.17 (26,178.37) (56,134.95)
------------- ------------- ---------- ------------- ---------- -----------
17,336,632.07 17,277,058.23 (59,573.84) 17,225,412.59 (51,645.64) (111,219.48)
Stock Bonus Plan 8,790,807.90 8,757,044.74 (33,763.16) 8,731,126.83 (25,917.91) (59,681.07)
------------- ------------- ---------- ------------- ---------- -----------
Total Outsiders 26,127,439.97 26,034,102.96 (93,337.01) 25,956,539.42 (77,563.55) (170,900.55)
Administrative
Expenses 666,666.67 583,333.33 (83,333.34) 583,333.33 (0.00) (83,333.34)
Corporate Taxes 8,554,791.94 8,508,779.91 (46,012.03) 8,617,318.84 108,538.93 62,526.90
------------- ------------- ---------- ------------- ---------- -----------
Total Value 44,140,000.00 44,140,000.00 (0.00) 44,140,000.00 (0.00) (0.00)
- ----------------------=============---------=============--------==========----------=============--------==========----===========
Confidential
------------
BLP & WEBCO Reconciliation
Page 1
106
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- --------------------------------------------------------------------------------
==================================================
| |
| COLT VS. THOROUGHBRED |
| |
==================================================
COLT THOROUGHBRED
---- ------------
Long-term Dividend Valuation*
BLC 519.51 523.21
BUL A 119.47 120.23
BUL B 116.75 117.52
FEB 53.45 53.77
Company Sale Valuation
BLC 561.68 566.97
BUL A 83.33 84.11
BUL B 83.33 84.11
FEB 25.05 25.29
* Corrected Since 8/12 presentation for 87/13 BLP income sharing.
4-2
107
PROJECT THOROUGHBRED/COLT PIPER JAFFRAY INC.
- ------------------------ ------------------
DISTRIBUTION SUMMARY
($ MILLIONS)
BLC @ 561.68 BUL A @ 119.47 FEB @ 53.45 TOTAL
SHARES VALUE SHARES VALUE SHARES VALUE DISTRIBUTION
------ ----- ------ ----- ------ ----- ------------
Outside Shareholders
& Stock Bonus Plan 23,400 $13.1 56,267 $6.7 132,420 $7.1 $26.9
Note: Assumes highest valuation for each share class, (i.e. BLC based on
company sale valuation and BUL A & FEB based on long-term dividend valuation).
4-3
108
PROJECT THOROUGHBRED/COLT Piper Jaffray Inc.
- -------------------------------------------------------------------------------
APPENDIX
109
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL SALE OF BLC STOCK -- SUMMARY
Cash Received From Stock Sale $ 58,000,000.00
- -------------------------- ---------------------- --------------------
SHAREHOLDER DISTRIBUTION RECEIVED % TOTAL DISTRIBUTION
- -------------------------- ---------------------- --------------------
---------
Outsiders
---------
Edward McLaughlin 566,455.01 0.977%
Cede & Co. 4,525,615.53 7.803%
Della & Co. 1,357,100.66 2.340%
Martin Nelson & Assoc. 64,500.57 0.111%
All Other Outsiders 6,445,192.20 11.112%
--------
Insiders
--------
RCB/Webco 5,382,294.08 9.280%
Mariea Best 670.06 0.001%
Stock Bonus Plan 8,190,171.04 14.121%
--------------- -------
Subtotal $ 26,531,999.15 45.745%
Corporate Taxes Paid 31,468,000.83 54.255%
--------------- -------
Total $ 57,999,999.98 100.000%
=============== =======
- ------------- ---------------
ENTITY VALUE PER SHARE
- ------------- ---------------
BLC $ 561.68
BUL $ 83.33
FEB $ 25.05
BLP #DIV/0!
110
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Proof of Value Per Share
------------------------------------------- -------------------------------------------
BLC BUL
- ----------- -------------------------------------------- ------------------------------------------
Shareholder Cash Received Shares Value Per Share Cash Received Shares Value Per Share
- ----------- -------------- --------- ---------------- ------------- --------- ---------------
- -----------
Outsiders
- -----------
Edward McLaughlin $ 566,455.01 6,798.00 83.33
Cede & Co. $ 2,451,728.74 4,365.00 $ 561.68 $ 472,545.80 5,671.00 83.33
Della & Co. $ 1,357,100.66 2,416.15 561.68
Martin Nelson & Assoc. $ 56,167.90 100.00 561.68 $ 8,332.67 100.00 83.33
All Other Outsiders $ 3,359,497.46 5,981.17 561.68 $ 1,369,641.22 16,437.00 83.33
-------------- ---------- --------------- -------------- ---------- ---------------
$ 7,224,494.76 12,862.32 $ 561.68 $ 2,416,974.71 29,006.00 $ 83.33
-------------- ---------- --------------- -------------- ---------- ---------------
- ----------
Insiders
- ----------
RCB/Webco $ 946,990.76 1,686.00 $ 561.68 $ 177,235.92 2,127.00 $ 83.33
Mariea Best $ 561.68 1.00 561.68 $ 83.33 1.00 83.33
-------------- ---------- --------------- -------------- ---------- ---------------
$ 947,552.44 1,687.00 $ 561.68 $ 177,319.25 2,128.00 $ 83.33
-------------- ---------- --------------- --------------- ---------- ---------------
Stock Bonus Plan $ 5,918,518.11 10,537.19 $ 561.68 $ 2,271,652.92 27,262.00 $ 83.33
BLC $ 2,339,230.89 28,073.00 $ 83.33
BUL $53,671,987.44 95,556.34 $ 561.68
FEB $24,998,014.69 300,000.00 $ 83.33
BLP $ - - $ #DIV/0!
------------- ---------- --------------- -------------- ---------- ----------------
Total $67,762,552.75 120,642.85 $ 561.68 $32,203.192.46 386,469.00 $ 83.33
============== ========== =============== ============== ========== ================
------------------------------------------- -------------------------------------------
FEB BLP
- ----------- -------------------------------------------- ------------------------------------------
Shareholder Cash Received Shares Value Per Share Cash Received Shares Value Per Share
- ----------- -------------- --------- --------------- -------------- --------- ---------------
- -----------
Outsiders
- -----------
Edward McLaughlin
Cede & Co. $ 1,601,340.98 63,921.00 $ 25.05
Della & Co.
Martin Nelson & Assoc. $
All Other Outsiders $ 1,716,053.52 68,500.00 25.05
-------------- ---------- --------------- -------------- ---------- ---------------
$ 3,317,394.50 132,421.00 $ 25.05 $ - - #DIV/0!
-------------- ---------- --------------- -------------- ---------- ---------------
- ----------
Insiders
- ----------
RCB /Webco $ 4,258,067.40 169,970.00 $ 25.05 $ - - #DIV/0!
Mariea Best $ 25.05 1.00 25.05
-------------- ---------- ---------------- --------------- ---------- ---------------
$ 4,258,092.45 169,971.00 $ 25.05 $ - - #DIV/0!
-------------- ---------- --------------- --------------- ---------- ---------------
Stock Bonus Plan
BLC $ 7,423,321.86 296,318.00 $ 25.05 $ - - #DIV/0!
BUL
FEB
BLP $ - - $ #DIV/0!
-------------- ---------- --------------- -------------- ---------- ----------------
Total $14,998,808.81 598,710.00 $ 25.05 $ - - #DIV/0!
============== ========== =============== ============== ========== ================
111
PROJECT COLT (AFTER WEBCO PURCHASE)
CURRENT OWNERSHIP STRUCTURE
------------------ ------------------ ------------------ ----------------
BLC BUL FEB BLP
------------------ ------------------ ------------------ ----------------
SHARES PERCENT SHARES PERCENT SHARES PERCENT SHARES PERCENT
------------------ ------------------ ------------------ ----------------
---------
Outsiders
---------
Edward McLaughlin 6,798.00 1.7590%
Cede & Co. 4,365.00 3.6181% 5,671.00 1.4674% 63,921.00 10.6765%
Della & Co. 2,416.15 2.0027%
Martin Nelson & Assoc. 100.00 0.0829% 100.00 0.0259%
All Other Outsiders 5,981.17 4.9577% 16,437.00 4.2531% 68,500.00 11.4413%
---------- -------- ---------- -------- ---------- -------- ------ --------
12,862.32 10.6615% 29,006.00 7.5054% 132,421.00 22.1177% - 0.0000%
---------- -------- ---------- -------- ---------- -------- ------ --------
--------
Insiders
--------
RCB/Webco 1,686.00 1.3975% 2,127.00 0.5504% 169,970.00 28.3894% - 0.0000%
Mariea Best 1.00 0.0008% 1.00 0.0003% 1.00 0.0002%
---------- -------- ---------- -------- ---------- -------- ------ --------
1,687.00 1.3983% 2,128.00 0.5506% 169,971.00 28.3895% - 0.0000%
---------- -------- ---------- -------- ---------- -------- ------ --------
Stock Bonus Plan 10,537.19 8.7342% 27,262.00 7.0541%
BLC 28,073.00 7.2640% 296,318.00 49.4927% - 00.0000%
BUL 95,556.34 79.2060%
FEB 300,000.00 77.6259%
BLP - 0.0000% - 0.0000%
---------- -------- ---------- -------- ---------- -------- ------ --------
Total 120,642.85 100.0000% 386,469.00 100.0000% 598,710.00 100.0000% - 0.0000%
========== ======== ========== ======== ========== ======== ====== ========
112
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 1 Distribution
- ---------------------------------- ----------------------------------------- ---------------------------------------
BUL SALE OF BLC STOCK FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ---------------------------------- ----------------------------------------- ---------------------------------------
Cash Received from
Sale $45,939,462.80 Cash Received from BUL $21,396,550.06 Cash Received from BUL $ -
Tax Basis - Tax Basis - Cash Received from FEB -
-------------- -------------- -------------
Gain on Sale $45,939,462.80 Gain from Distribution $21,396,550.06 Total Cash Received $ -
Tax Rate 40% Tax Rate 40% Tax Basis
-------------- -------------- -------------
Tax Due $18,375,785.12 Tax Due $8,558,620.02 Gain from Distribution $ -
-------------- -------------- =============
Cash Distributed $27,563,677.68 Cash Distributed $12,837,930.04
============== ==============
Gain/Basis Alloc. to BLC $ -
=============
Cash Distributed $ -
=============
- ------------------------------------------------ ----------------------------------------------
BUL SHAREHOLDERS FEB SHAREHOLDERS
- ------------------------------------------------ ----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
------- ------------ ------- --------
- ------------------- -------------------
Outsiders Outsiders
- ------------------- -------------------
Edward McLaughlin 1.7590% $484,845.82 Edward McLaughlin
Cede & Co. 1.4674% $404,466.12 Cede & Co. 10.6765% $1,370,635.74
Della & Co. Della & Co.
Martin Nelson & Martin Nelson &
Assoc. 0.0259% $ 7,132.18 Assoc.
All Other Outsiders 4.2531% $1,172,316.98 All Other Outsiders 11.4413% 1,468,821.65
------------------------- -----------------------------
7.5054% $2,068,761.10 22.1177% $2,839,457.39
------------------------- -----------------------------
- ------------------ ------------------
Insiders Insiders
- ------------------ ------------------
RCB/Webco 0.5504% $151,701.54 RCB/Webco 28.3894% $3,644,607.52
Mariea Best 0.0003% $ 71.32 Mariea Best 0.0002% 21.44
------------------------- ------------------------------
0.5506% $151,772.86 28.3895% $3,644,628.96
------------------------- ------------------------------
Stock Bonus Plan 7.0541% $1,944,375.83 Stock Bonus Plan
BLC 7.2640% $2,002,217.83 BLC 49.4927% $6,353,843.68
BUL BUL
FEB 77.6259% $21,396,550.06 FEB
BLP 0.0000% $ - BLP 0.0000% $ -
------------------------- ------------------------------
Total 100.0000% $27,563,677.68 Total 100.0000% $12,837,930.04
=========================== ==============================
Total Taxes Paid $26,934,405.14
BLC's Beginning Basis in
FEB, BUL, & BLP 10,562,483.20
Basis Used This Round 0.00
Basis Allocated From BLP
This Round 0.00
--------------
BLC's Ending Basis This Round 10,562,483.20
==============
- ----------------------------------------------------------------
BLP SHAREHOLDERS
- ----------------------------------------------------------------
PERCENT DIVIDEND
---------------- -------------
- ------------------
Outsiders
- ------------------
Edward McLaughlin
Cede & Co.
Della & Co.
Martin Nelson & Assoc.
All Other Outsiders
----------------------------------
0.0000% $ -
----------------------------------
- -----------------
Insiders
- -----------------
RCB/Webco 0.0000% $ -
Mariea Best
----------------------------------
0.0000% $ -
----------------------------------
Stock Bonus Plan
BLC 0.0000% $ -
BUL
FEB
BLP
---------------------------------
Total 0.0000% $ -
---------------------------------
BLP's Beginning Basis in FEB & BUL -
Basis Used This Round -
-------------
BLP's Ending Basis This Round -
=============
113
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 2 Distribution
- -------------------------------------------- -----------------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- -------------------------------------------- -----------------------------------------
Cash Received from BUL $2,002,217.83 Cash Received from BLC $6,618,499.61
Cash Received from FEB 6,353,843.68 Tax Basis -
-------------
Cash Received from BLP - Gain on Sale $6,618,499.61
-------------
Total Cash Received $8,356,061.52 Tax Rate 40%
-------------
Tax Basis 8,356,061.52 Tax Due $2,647,399.84
------------- -------------
Gain on Sale $ - Cash Distributed $3,971,099.76
Last Round BLP Income $ - =============
-------------
Total Income $ -
Tax Rate 40%
-------------
Tax Due $ -
-------------
Cash Distributed $8,356,061.52
=============
- -------------------------------------------- ----------------------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- -------------------------------------------- ----------------------------------------------
Cash Received from BUL $3,082,601.53 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB -
------------- -----------
Gain from Distribution $3,082,601.53 Total Cash Received $ -
Tax Rate 40% Tax Basis -
------------- -----------
Tax Due $1,233,040.61 Gain from Distribution $ -
------------- ===========
Cash Distributed $1,849,560.92
============= Gain/Basis Alloc. to BLC $ -
===========
Cash Distributed $ -
===========
- -------------------------------------------------------------- --------------------------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- -------------------------------------------------------------- --------------------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
- --------- ------- -------- ------- -----------
Outsiders Outsiders
- --------- ---------
Edward McLaughlin Edward McLaughlin 1.7590% $ 69,851.75
Cede & Co. 3.6181% $302,332.12 Cede & Co. 1.4674% $ 58,271.44
Della & Co. 2.0027% $167,349.31 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 6,926.28 Martin Nelson & Assoc. 0.0259% $ 1,027.53
All Other Outsiders 4.9577% $414,272.58 All Other Outsiders 4.2531% $168,895.74
------------------------------ ----------------------------
10.6615% $890,880.29 7.5054% $298,046.47
------------------------------ ----------------------------
- --------
Insiders Insiders
- -------- --------
RCB/Webco 1.3975% $116,777.08 RCB/Webco 0.5504% $ 21,855.64
Mariea Best 0.0008% $ 69.26 Mariea Best 0.0003% $ 10.28
------------------------------ ----------------------------
1.3983% $116,846.34 0.5506% $ 21,865.92
------------------------------ ----------------------------
Stock Bonus Plan 8.7342% $729,835.28 Stock Bonus Plan 7.0541% $280,126.28
BLC BLC 7.2640% $288,459.58
BUL 79.2060% $6,618,499.61 BUL
FEB FEB 77.6259% $ 3,082,601.53
BLP BLP 0.0000% $ -
------------------------------- ------------------------------
Total 100.0000% $8,356,061.52 Total 100.0000% $ 3,971,099.76
=============================== ==============================
Total Taxes Paid $3,880,440.45
BLC's Beginning Basis in FEB, BUL, & BL 10,562,483.20
Basis Used This Round (8,356,061.52)
Basis Allocated From BLP This Round 0.00
-------------
BLC's Ending Basis This Round 2,206,421.68
=============
- -------------------------------------------------------------- ----------------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- -------------------------------------------------------------- ----------------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
------- -------- ------- --------
- --------- ---------
Outsiders Outsiders
- --------- ----------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $197,467.53 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $211,613.17 All Other Outsiders
--------------------------- -------------------------------
22.1177% $409,080.70 0.0000% $ -
- -------- --------------------------- -------- -------------------------------
Insiders Insiders
- -------- --------
RCB/Webco 28,3894% $525,078.70 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 3.09 Mariea Best
--------------------------- -------------------------------
28.3895% $525,081.79 0.0000%
--------------------------- ------------------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $915,398.43 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
--------------------------- -------------------------------
Total 100.0000% $1,849,560.92 Total 0.0000% $ -
============================ ================================
BLP's Beginning Basis in FEB & BUL 0.00
Basis Used in This Round 0.00
------------
BLP's Ending Basis in FEB & BUL 0.00
============
114
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 3 Distribution
- --------------------------------------- -------------------------------------- -----------------------------------
BLC Distribution Received BUL Distribution Received FEB Distribution Received
- --------------------------------------- -------------------------------------- -----------------------------------
Cash Received from BUL $ 288,459.58 Cash Received from BLC $ 953,527.41 Cash Received from BUL $ 444,110.48
Cash Received from FEB 915,398.43 Tax Basis - Tax Basis $ -
-------------- ------------
Cash Received from BLP - Gain on Sale $ 953,527.41 Gain from Distribution $ 444,110.48
--------------
Total Cash Received $ 1,203,858.00 Tax Rate 40% Tax Rate 40%
-------------- ------------
Tax Basis 1,203,858.00 Tax Due $ 381.410.96 Tax Due $ 177.644.19
-------------- -------------- ------------
Gain on Sale $ - Cash Distributed $ 572,116.45 Cash Distributed $ 266,466.29
Last Round BLP Income $ - ============== ============
--------------
Total Income $ -
Tax Rate 40%
--------------
Tax Due $ -
--------------
Cash Distributed $ 1,203,858.00
==============
- -----------------------------------------
BLP Distribution Received
- -----------------------------------------
Cash Received from BUL $ -
Cash Received from FEB -
--------------
Total Cash Received $ -
Tax Basis -
--------------
Gain from Distribution $ -
==============
Gain/Basis Alloc. to BLC $ -
==============
Cash Distributed $ -
==============
- ------------------------------------------------------- -----------------------------------------------------
BLC Shareholders BUL Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- --------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 10,063.54
Cede & Co. 3.6181% $ 43,557.00 Cede & Co. 1.4674% $ 8,395.17
Della & Co. 2.0027% $ 24,110.02 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 997.87 Martin Nelson & Assoc. 0.0259% $ 148.04
All Other Outsiders 4.9577% $ 59,684.26 All Other Outsiders 4.2531% $ 24,332.81
--------------------------- ---------------------------
10.6615% $ 128,349.15 7.5054% $ 42,939.56
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 1.3975% $ 16,824.08 RCB/Webco 0.5504% $ 3,148.74
Mariea Best 0.0008% $ 9.98 Mariea Best 0.0003% $ 1.48
--------------------------- ---------------------------
1.3983% $ 16,834.06 0.5506% $ 3,150.22
--------------------------- ---------------------------
Stock Bonus Plan 8.7342% $ 105,147.39 Stock Bonus Plan 7.0541% $ 40,357.80
BLC BLC 7.2640% $ 41,558.38
BUL 79.2060% $ 953,527.41 BUL
FEB FEB 77.6259% $ 444,110.48
BLP BLP 0.0000% $ -
--------------------------- ---------------------------
Total 100.0000% $1,203,858.00 Total 100.0000% $ 572,116.45
=========================== ===========================
Total Taxes Paid $ 559,055.16
BLCs Beginning Basis in FEB, BUL, & BL 2,206,421.68
Basis Used This Round (1,203,858,00)
Basis Allocated From BLP This Round 0.00
--------------
BLC's Ending Basis This Round 1,002,563.68
==============
- ------------------------------------------------------- -----------------------------------------------------
FEB Shareholders BLP Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- -------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 28,449.15 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% 30,487.12 All Other Outsiders
--------------------------- ---------------------------
22.1177% $ 58,936.27 0.0000% $ -
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 28.3894% $ 75,648.10 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.45 Mariea Best
--------------------------- ---------------------------
28,3895% $ 75,648.55 0.0000% $ -
--------------------------- ---------------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 131,881.48 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
--------------------------- ---------------------------
Total 100.0000% $ 266,466.29 Total 0.0000% $ -
=========================== ===========================
BLP's Beginning Basis in FEB & BUL 0.00
Basis Used in This Round 0.00
--------------
BLP's Ending Basis in FEB & BUL 0.00
==============
115
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 4 Distribution
- --------------------------------------- -------------------------------------- -----------------------------------
BLC Distribution Received BUL Distribution Received FEB Distribution Received
- --------------------------------------- -------------------------------------- -----------------------------------
Cash Received from BUL $ 41,558.38 Cash Received from BLC $ 137,374.72 Cash Received from BUL $ 63,983.01
Cash Received from FEB 131,881.48 Tax Basis - Tax Basis $ -
-------------- ------------
Cash Received from BLP - Gain on Sale $ 137,374.72 Gain from Distribution $ 63,983.01
--------------
Total Cash Received $ 173,439.85 Tax Rate 40% Tax Rate 40%
-------------- ------------
Tax Basis 173,439.85 Tax Due $ 59,949.89 Tax Due $ 25,593.20
-------------- -------------- ------------
Gain on Sale $ - Cash Distributed $ 82,424.83 Cash Distributed $ 38,389.81
Last Round BLP Income $ - ============== ============
--------------
Total Income $ -
Tax Rate 40%
--------------
Tax Due $ -
Cash Distributed $ 173,439.85
==============
- -----------------------------------------
BLP Distribution Received
- -----------------------------------------
Cash Received from BUL $ -
Cash Received from FEB -
--------------
Total Cash Received $ -
Tax Basis -
--------------
Gain from Distribution $ -
==============
Gain/Basis Alloc. to BLC $ -
==============
Cash Distributed $ -
==============
- ------------------------------------------------------- -----------------------------------------------------
BLC Shareholders BUL Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- --------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 1,449.85
Cede & Co. 3.6181% $ 6,275.26 Cede & Co. 1.4674% $ 1,209.49
Della & Co. 2.0027% $ 3,473.53 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 143.76 Martin Nelson & Assoc. 0.0259% $ 21.33
All Other Outsiders 4.9577% $ 8,598.71 All Other Outsiders 4.2531% $ 3,505.63
--------------------------- ---------------------------
10.6615% $ 18,491.26 7.5054% $ 6,186.30
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 1.3975% $ 2,423.85 RCB/Webco 0.5504% $ 453.64
Mariea Best 0.0008% $ 1.44 Mariea Best 0.0003% $ 0.21
--------------------------- ---------------------------
1.3983% $ 2,425.28 0.5506% $ 453.85
--------------------------- ---------------------------
Stock Bonus Plan 8.7342% $ 15,148.59 Stock Bonus Plan 7.0541% $ 5,814.35
BLC BLC 7.2640% $ 5,987.32
79.2060% $ 137,374.72
BUL BUL
FEB FEB 77.6259% $ 63,983.01
BLP BLP 0.0000% $ -
--------------------------- ---------------------------
Total 100.0000% $ 173,439.85 Total 100.0000% $ 82,424.83
=========================== ===========================
Total Taxes Paid $ 80,543.09
BLCs Beginning Basis in FEB, BUL, & BL 1,002,563.68
Basis Used This Round (173,439.85)
Basis Allocated From BLP This Round 0.00
--------------
BLC's Ending Basis This Round 829,123.83
==============
- ------------------------------------------------------- -----------------------------------------------------
FEB Shareholders BLP Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- -------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 4,098.67 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% 4,392.28 All Other Outsiders
--------------------------- ---------------------------
22.1177% $ 8,490.95 0.0000% $ -
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 28.3894% $ 10,898.62 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.06 Mariea Best
--------------------------- ---------------------------
28.3895% $ 10,898.69 0.0000% $ -
--------------------------- ---------------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 19,000.17 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
--------------------------- ---------------------------
Total 100.0000% $ 38,389.81 Total 0.0000% $ -
=========================== ===========================
BLP's Beginning Basis in FEB & BUL 0.00
Basis Used in This Round 0.00
--------------
BLP's Ending Basis in FEB & BUL 0.00
==============
116
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 5 Distribution
- --------------------------------------- -------------------------------------- -----------------------------------
BLC Distribution Received BUL Distribution Received FEB Distribution Received
- --------------------------------------- -------------------------------------- -----------------------------------
Cash Received from BUL $ 5,987.32 Cash Received from BLC $ 19,791.58 Cash Received from BUL $ 9,218.03
Cash Received from FEB 19,000.17 Tax Basis - Tax Basis $ -
-------------- ------------
Cash Received from BLP - Gain on Sale $ 19,791.58 Gain from Distribution $ 9,218.03
--------------
Total Cash Received $ 24,987.48 Tax Rate 40% Tax Rate 40%
-------------- ------------
Tax Basis 24,987.48 Tax Due $ 7,916.63 Tax Due $ 3,687.21
-------------- -------------- ------------
Gain on Sale $ - Cash Distributed $ 11,874.95 Cash Distributed $ 5,530.82
Last Round BLP Income $ - ============== ============
--------------
Total Income $ -
Tax Rate 40%
--------------
Tax Due $ -
Cash Distributed $ 24,987.48
==============
- -----------------------------------------
BLP Distribution Received
- -----------------------------------------
Cash Received from BUL $ -
Cash Received from FEB -
--------------
Total Cash Received $ -
Tax Basis -
--------------
Gain from Distribution $ -
==============
Gain/Basis Alloc. to BLC $ -
==============
Cash Distributed $ -
==============
- ------------------------------------------------------- -----------------------------------------------------
BLC Shareholders BUL Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- -------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 208.88
Cede & Co. 3.6181% $ 904.08 Cede & Co. 1.4674% $ 174.25
Della & Co. 2.0027% $ 500.43 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 20.71 Martin Nelson & Assoc. 0.0259% $ 3.07
All Other Outsiders 4.9577% $ 1,238.82 All Other Outsiders 4.2531% $ 505.06
--------------------------- ---------------------------
10.6615% $ 2,664.04 7.5054% $ 891.26
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 1.3975% $ 349.20 RCB/Webco 0.5504% $ 65.36
Mariea Best 0.0008% $ 0.21 Mariea Best 0.0003% $ 0.03
--------------------------- ---------------------------
1.3983% $ 349.41 0.5506% $ 65.39
--------------------------- ---------------------------
Stock Bonus Plan 8.7342% $ 2,182.46 Stock Bonus Plan 7.0541% $ 837.67
BLC BLC 7.2640% $ 862.59
BUL 79.2060% $ 19,791.58 BUL
FEB FEB 77.6259% $ 9,218.03
BLP BLP 0.0000% $ -
--------------------------- ---------------------------
Total 100.0000% $ 24,987.48 Total 100.0000% $ 11,874.95
=========================== ===========================
Total Taxes Paid $ 11,603.85
BLCs Beginning Basis in FEB, BUL, & BL 829,123.83
Basis Used This Round 24,987.48)
Basis Allocated From BLP This Round 0.00
--------------
BLC's Ending Basis This Round 804,136.34
==============
- ------------------------------------------------------- -----------------------------------------------------
FEB Shareholders BLP Shareholders
- ------------------------------------------------------- -----------------------------------------------------
Percent Dividend Percent Dividend
- ---------------- -------------------------- ---------------- ---------------------------
Outsiders Outsiders
- ---------------- ----------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 590.50 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% 632.80 All Other Outsiders
--------------------------- ---------------------------
22.1177% $ 1,223.29 0.0000% $ -
--------------------------- ---------------------------
- ---------------- ----------------
Insiders Insiders
- ---------------- ----------------
RCB/Webco 28.3894% $ 1,570.17 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.01 Mariea Best
--------------------------- ---------------------------
28.3895% $ 1,570.17 0.0000% $ -
--------------------------- ---------------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 2,737.35 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
--------------------------- ---------------------------
Total 100.0000% $ 5,530.82 Total 0.0000% $ -
=========================== ===========================
BLP's Beginning Basis in FEB & BUL 0.00
Basis Used in This Round 0.00
--------------
BLP's Ending Basis in FEB & BUL 0.00
==============
117
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 6 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 862.59 Cash Received from BLC $ 2,851.37
Cash Received from FEB 2,737.35 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 2,851.37
Total Cash Received $ 3,599.95 Tax Rate 40%
Tax Basis 3,599.95 ----------
---------- Tax Due $ 1,140.55
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 1,710.82
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
Cash Distributed $ 3,599.95
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 1,328.04 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB -
---------- ----------
Gain from Distribution $ 1,328.04 Total Cash Received $
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 531.22 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 796.83 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 30.09
Cede & Co. 3.6181% $ 130.25 Cede & Co. 1.4674% $ 25.10
Della & Co. 2.0027% $ 72.10 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 2.98 Martin Nelson & Assoc. 0.0259% $ 0.44
All Other Outsiders 4.9577% $ 178.48 All Other Outsiders 4.2531% $ 72.76
---------------------- ----------------------
10.6615% $ 383.81 7.5054% $ 128.40
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 50.31 RCB/Webco 0.5504% $ 9.42
Mariea Best 0.0008% $ 0.03 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 50.34 0.5506% $ 9.42
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 314.43 Stock Bonus Plan 7.0541% $ 120.68
BLC BLC 7.2640% $ 124.27
BUL 79.2060% $ 2,851.37 BUL
FEB FEB 77.6259% $ 1,328.04
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 3,599.95 Total 100.0000% $ 1,710.82
====================== ======================
Total Taxes Paid $ 1,671.77
BLC's Beginning Basis in FEB, BUL,
& BL 804,136.34
Basis Used This Round (3,599.95)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 800,536.40
===========
- ----------------------------------------------- -----------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 85.07 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 91.17 All Other Outsiders
---------------------- ----------------------
22.1177% $ 176.24 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 226.21 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% $ 0.00 Marica Best
---------------------- ----------------------
28.3895% $ 226.22 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 394.37 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 796.83 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB,
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis IN FEB & BUL 0.00
===========
118
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 7 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 124.27 Cash Received from BLC $ 410.80
Cash Received from FEB 394.37 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 410.80
Total Cash Received $ 518.64 Tax Rate 40%
Tax Basis 518.64 ----------
---------- Tax Due $ 164.32
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 246.48
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
----------
Cash Distributed $ 518.64
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 191.33 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB $ -
---------- ----------
Gain from Distribution $ 191.33 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 76.53 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 114.80 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 4.34
Cede & Co. 3.6181% $ 18.77 Cede & Co. 1.4674% $ 3.62
Della & Co. 2.0027% $ 10.39 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.43 Martin Nelson & Assoc. 0.0259% $ 0.06
All Other Outsiders 4.9577% $ 25.71 All Other Outsiders 4.2531% $ 10.48
---------------------- ----------------------
10.6615% $ 55.30 7.5054% $ 18.50
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 7.25 RCB/Webco 0.5504% $ 1.36
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 7.25 0.5506% $ 1.36
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 45.30 Stock Bonus Plan 7.0541% $ 17.39
BLC BLC 7.2640% $ 17.90
BUL 79.2060% $ 410.80 BUL
FEB FEB 77.6259% $ 191.33
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 518.64 Total 100.0000% $ 246.48
====================== ======================
Total Taxes Paid $ 240.85
BLC's Beginning Basis in FEB, BUL,
& BL 800,536.40
Basis Used This Round (518.64)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 800,017.75
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 12.26 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 13.13 All Other Outsiders
---------------------- ----------------------
22.1177% $ 25.39 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 32.59 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% $ 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 32.59 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 56.82 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 114.80 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========
119
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 8 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 17.90 Cash Received from BLC $ 59.18
Cash Received from FEB 56.82 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 59.18
Total Cash Received $ 74.72 Tax Rate 40%
Tax Basis 74.72 ----------
---------- Tax Due $ 23.67
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 35.51
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
Cash Distributed $ 74.72
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 27.57 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB -
---------- ----------
Gain from Distribution $ 27.57 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 11.03 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 16.54 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.62
Cede & Co. 3.6181% $ 2.70 Cede & Co. 1.4674% $ 0.52
Della & Co. 2.0027% $ 1.50 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.06 Martin Nelson & Assoc. 0.0259% $ 0.01
All Other Outsiders 4.9577% $ 3.70 All Other Outsiders 4.2531% $ 1.51
---------------------- ----------------------
10.6615% $ 7.97 7.5054% $ 2.67
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 1.04 RCB/Webco 0.5504% $ 0.20
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 1.04 0.5506% $ 0.20
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 6.53 Stock Bonus Plan 7.0541% $ 2.50
BLC BLC 7.2640% $ 2.58
BUL 79.2060% $ 59.18 BUL
FEB FEB 77.6259% $ 27.57
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 74.72 Total 100.0000% $ 35.51
====================== ======================
Total Taxes Paid $ 34.70
BLC's Beginning Basis in FEB, BUL,
& BL 800,017.75
Basis Used This Round (74.72)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,943.03
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 1.77 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 1.89 All Other Outsiders
---------------------- ----------------------
22.1177% $ 3.66 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 4.70 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 4.70 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 8.19 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 16.54 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========
120
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 9 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 2.58 Cash Received from BLC $ 8.53
Cash Received from FEB 8.19 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 8.53
Total Cash Received $ 10.77 Tax Rate 40%
Tax Basis 10.77 ----------
---------- Tax Due $ 3.41
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 5.12
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
Cash Distributed $ 10.77
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 3.97 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB -
---------- ----------
Gain from Distribution $ 3.97 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 1.59 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 2.38 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.09
Cede & Co. 3.6181% $ 0.39 Cede & Co. 1.4674% $ 0.08
Della & Co. 2.0027% $ 0.22 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.01 Martin Nelson & Assoc. 0.0259% $ 0.00
All Other Outsiders 4.9577% $ 0.53 All Other Outsiders 4.2531% $ 0.22
---------------------- ----------------------
10.6615% $ 1.15 7.5054% $ 0.38
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 0.15 RCB/Webco 0.5504% $ 0.03
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 0.15 0.5506% $ 0.03
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 0.94 Stock Bonus Plan 7.0541% $ 0.36
BLC BLC 7.2640% $ 0.37
BUL 79.2060% $ 8.53 BUL
FEB FEB 77.6259% $ 3.97
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 10.77 Total 100.0000% $ 5.12
====================== ======================
Total Taxes Paid $ 5.00
BLC's Beginning Basis in FEB, BUL,
& BL 799,943.03
Basis Used This Round (10.77)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,932.27
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 0.25 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 0.27 All Other Outsiders
---------------------- ----------------------
22.1177% $ 0.53 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB Webco 28.3894% $ 0.68 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 0.68 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 1.18 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 2.38 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
----------
BLP's Ending Basis in FEB & BUL 0.00
==========
121
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 10 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 0.37 Cash Received from BLC $ 1.23
Cash Received from FEB 1.18 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 1.23
Total Cash Received $ 1.55 Tax Rate 40%
Tax Basis 1.55 ----------
---------- Tax Due $ 0.49
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 0.74
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
Cash Distributed $ 1.55
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 0.57 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB -
---------- ----------
Gain from Distribution $ 0.57 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 0.23 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 0.34 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.01
Cede & Co. 3.6181% $ 0.06 Cede & Co. 1.4674% $ 0.01
Della & Co. 2.0027% $ 0.03 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.00 Martin Nelson & Assoc. 0.0259% $ 0.00
All Other Outsiders 4.9577% $ 0.08 All Other Outsiders 4.2531% $ 0.03
---------------------- ----------------------
10.6615% $ 0.17 7.5054% $ 0.06
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 0.02 RCB/Webco 0.5504% $ 0.00
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 0.02 0.5506% $ 0.00
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 0.14 Stock Bonus Plan 7.0541% $ 0.05
BLC BLC 7.2640% $ 0.05
BUL 79.2060% $ 1.23 BUL
FEB FEB 77.6259% $ 0.57
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 1.55 Total 100.0000% $ 0.74
====================== ======================
Total Taxes Paid $ 0.72
BLC's Beginning Basis in FEB, BUL,
& BL 799,932.27
Basis Used This Round (1.55)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,930.71
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 0.04 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 0.04 All Other Outsiders
---------------------- ----------------------
22.1177% $ 0.08 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 0.10 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 0.10 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 0.17 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 0.34 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========
122
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 11 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 0.05 Cash Received from BLC $ 0.18
Cash Received from FEB 0.17 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 0.18
Total Cash Received $ 0.22 Tax Rate 40%
Tax Basis 0.22 ----------
---------- Tax Due $ 0.07
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 0.11
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
----------
Cash Distributed $ 0.22
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 0.08 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB $ -
---------- ----------
Gain from Distribution $ 0.08 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 0.03 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 0.05 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.00
Cede & Co. 3.6181% $ 0.01 Cede & Co. 1.4674% $ 0.00
Della & Co. 2.0027% $ 0.00 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.00 Martin Nelson & Assoc. 0.0259% $ 0.00
All Other Outsiders 4.9577% $ 0.01 All Other Outsiders 4.2531% $ 0.00
---------------------- ----------------------
10.6615% $ 0.02 7.5054% $ 0.01
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 0.00 RCB/Webco 0.5504% $ 0.00
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 0.00 0.5506% $ 0.00
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 0.02 Stock Bonus Plan 7.0541% $ 0.01
BLC BLC 7.2640% $ 0.01
BUL 79.2060% $ 1.18 BUL
FEB FEB 77.6259% $ 0.08
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 0.22 Total 100.0000% $ 0.11
====================== ======================
Total Taxes Paid $ 0.10
BLC's Beginning Basis in FEB, BUL,
& BL 799,930.71
Basis Used This Round (0.22)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,930.49
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 0.01 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 0.01 All Other Outsiders
---------------------- ----------------------
22.1177% $ 0.01 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 0.01 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% $ 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 0.01 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 0.02 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 0.05 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========
123
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 12 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 0.01 Cash Received from BLC $ 0.03
Cash Received from FEB 0.02 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 0.03
Total Cash Received $ 0.03 Tax Rate 40%
Tax Basis 0.03 ----------
---------- Tax Due $ 0.01
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 0.02
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
----------
Cash Distributed $ 0.03
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 0.01 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB $ -
---------- ----------
Gain from Distribution $ 0.01 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 0.00 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 0.01 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.00
Cede & Co. 3.6181% $ 0.00 Cede & Co. 1.4674% $ 0.00
Della & Co. 2.0027% $ 0.00 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.00 Martin Nelson & Assoc. 0.0259% $ 0.00
All Other Outsiders 4.9577% $ 0.00 All Other Outsiders 4.2531% $ 0.00
---------------------- ----------------------
10.6615% $ 0.00 7.5054% $ 0.00
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 0.00 RCB/Webco 0.5504% $ 0.00
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 0.00 0.5506% $ 0.00
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 0.00 Stock Bonus Plan 7.0541% $ 0.00
BLC BLC 7.2640% $ 0.00
BUL 79.2060% $ 0.03 BUL
FEB FEB 77.6259% $ 0.01
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 0.03 Total 100.0000% $ 0.02
====================== ======================
Total Taxes Paid $ 0.01
BLC's Beginning Basis in FEB, BUL,
& BL 799,930.49
Basis Used This Round (0.03)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,930.46
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 0.00 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 0.00 All Other Outsiders
---------------------- ----------------------
22.1177% $ 0.00 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 0.00 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% $ 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 0.00 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 0.00 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 0.01 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========
124
PROJECT COLT (AFTER WEBCO PURCHASE)
BUL Sale of BLC Stock - Round 13 Distribution
- ------------------------------------ -----------------------------------
BLC DISTRIBUTION RECEIVED BUL DISTRIBUTION RECEIVED
- ------------------------------------ ------------------------------------
Cash Received from BUL $ 0.00 Cash Received from BLC $ 0.00
Cash Received from FEB 0.00 Tax Basis -
Cash Received from BLP - ----------
---------- Gain on Sale $ 0.00
Total Cash Received $ 0.00 Tax Rate 40%
Tax Basis 0.00 ----------
---------- Tax Due $ 0.00
Gain on Sale $ - ----------
Last Round BLP Income $ - Cash Distributed $ 0.00
---------- ==========
Total Income $ -
Tax Rate 40%
----------
Tax Due $ -
----------
Cash Distributed $ 0.00
==========
- ------------------------------------ -----------------------------------
FEB DISTRIBUTION RECEIVED BLP DISTRIBUTION RECEIVED
- ------------------------------------ -----------------------------------
Cash Received from BUL $ 0.00 Cash Received from BUL $ -
Tax Basis $ - Cash Received from FEB $ -
---------- ----------
Gain from Distribution $ 0.00 Total Cash Received $ -
Tax Rate 40% Tax Basis -
---------- ----------
Tax Due $ 0.00 Gain from Distribution $ -
---------- ==========
Cash Distributed $ 0.00 Gain/Basis Alloc. to BLC $ -
========== ==========
Cash Distributed $ -
==========
- ----------------------------------------------- -----------------------------------------------
BLC SHAREHOLDERS BUL SHAREHOLDERS
- ----------------------------------------------- -----------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- ----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin 1.7590% $ 0.00
Cede & Co. 3.6181% $ 0.00 Cede & Co. 1.4674% $ 0.00
Della & Co. 2.0027% $ 0.00 Della & Co.
Martin Nelson & Assoc. 0.0829% $ 0.00 Martin Nelson & Assoc. 0.0259% $ 0.00
All Other Outsiders 4.9577% $ 0.00 All Other Outsiders 4.2531% $ 0.00
---------------------- ----------------------
10.6615% $ 0.00 7.5054% $ 0.00
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 1.3975% $ 0.00 RCB/Webco 0.5504% $ 0.00
Mariea Best 0.0008% $ 0.00 Mariea Best 0.0003% $ 0.00
---------------------- ----------------------
1.3983% $ 0.00 0.5506% $ 0.00
---------------------- ----------------------
Stock Bonus Plan 8.7342% $ 0.00 Stock Bonus Plan 7.0541% $ 0.00
BLC BLC 7.2640% $ 0.00
BUL 79.2060% $ 0.00 BUL
FEB FEB 77.6259% $ 0.00
BLP BLP 0.0000% $ -
---------------------- ----------------------
Total 100.0000% $ 0.00 Total 100.0000% $ 0.00
====================== ======================
Total Taxes Paid $ 0.00
BLC's Beginning Basis in FEB, BUL,
& BL 799,930.46
Basis Used This Round (0.00)
Basis Allocated From BLP This Round 0.00
-----------
BLC's Ending Basis This Round 799,930.45
===========
- ----------------------------------------------- ------------------------------------------------
FEB SHAREHOLDERS BLP SHAREHOLDERS
- ----------------------------------------------- ------------------------------------------------
PERCENT DIVIDEND PERCENT DIVIDEND
--------- ---------- --------- -----------
- --------------------- ---------------------
Outsiders Outsiders
- --------------------- ---------------------
Edward McLaughlin Edward McLaughlin
Cede & Co. 10.6765% $ 0.00 Cede & Co.
Della & Co. Della & Co.
Martin Nelson & Assoc. Martin Nelson & Assoc.
All Other Outsiders 11.4413% $ 0.00 All Other Outsiders
---------------------- ----------------------
22.1177% $ 0.00 0.0000% $ -
---------------------- ----------------------
- --------------------- ---------------------
Insiders Insiders
- --------------------- ---------------------
RCB/Webco 28.3894% $ 0.00 RCB/Webco 0.0000% $ -
Mariea Best 0.0002% $ 0.00 Mariea Best
---------------------- ----------------------
28.3895% $ 0.00 0.0000% $ -
---------------------- ----------------------
Stock Bonus Plan Stock Bonus Plan
BLC 49.4927% $ 0.00 BLC 0.0000% $ -
BUL BUL
FEB FEB
BLP 0.0000% $ - BLP
---------------------- ----------------------
Total 100.0000% $ 0.00 Total 0.0000% $ -
====================== ======================
BLP's Beginning Basis in FEB
& BUL 0.00
Basis Used in This Round 0.00
-----------
BLP's Ending Basis in FEB & BUL 0.00
===========