Corporate Reorganization Charts

Corporate Tax Segment 7 CHARTS Tax-Free Reorganizations 4/30/2007 1 4/30/2007 2 1 Merger - §368(a)(1)(A) Shareholders A shares Target merger Acquirer 4/30/2007 3 B Reorganization - Stock for Stock - §368 (a)(1)(B) Shareholders A shares Acquirer T shares Target 4/30/2007 4 2 C Reorganization - Stock for Assets - §368 (a)(1)(C) Shareholders A shares (in liquidation) A shares Acquirer Target assets 4/30/2007 5 “A” Reorganization & Asset Dropdown - §368(a)(2)(C) Shareholders Target (1) merger / assets Acquirer assets (2) 4/30/2007 Subsidiary 6 3 “Parenthetical B” Reorganization Acquirer A shares (1) Shareholders T shares Subsidiary A shares (2) Target Target 4/30/2007 7 “Parenthetical C” Reorganization Shareholders (3) Acquirer (2) A shares (1) assets Target Subsidiary A shares Liquidation 4/30/2007 8 4 Forward Triangular Merger §368(a)(2)(D) Shareholders Acquirer A shares Target merger Subsidiary 4/30/2007 9 Reverse Triangular Merger §368(a)(2)(E) Shareholders Acquirer A shares (2) (1) A shares Target 4/30/2007 merger Subsidiary 10 5 Example 1 (a) Shareholders (2) P Stock P (1) merger (3) asset dropdown S Target 4/30/2007 11 Example1 (b) Shareholders P (3) (1) (2) S stock P stock S Target (4) P stockvoting common T assets T liquidated 4/30/2007 12 6 Example1 (c) Shareholders (4) P P voting com stock (2) S stock (1) P stock – voting com S Target Merger (3) 4/30/2007 13 Example1 (d) Shareholders P (4) P & S stock (1) (2) S stock P stock voting com. S Target merger (3) 4/30/2007 14 7 Example1 (e) Shareholders (4) P P stock - 50% & S notes - 50% (2) S stock S Target (1) P shares – voting common merger (3) 4/30/2007 15 Example1 (f) preferredShareholders - 30 % P nonvoting - 20 % cash - 50 % S notes (4) P (1) (2) S stock P stock S Target merger (3) 4/30/2007 16 8 Example1 (g) Shareholders (4) P stock - 50% & S notes - 50% P (1) (2) S Stock S Target P shares – voting common merger (3) Pre-merger redemption of dissenting shareholders for 1/3 of T’s operating assets 4/30/2007 17 Example 2 (a) Shareholders (3) P stock P (1) (2) S stock T stock Target 4/30/2007 S P stock – voting common 18 9 Example 2 (b) (5) Dissenters Shareholders 20% cash (4) P stock 80 % of the transaction value Target P (2) S stock S (1) P stock – voting common merger (3) 4/30/2007 19 Example 2 (c) (5) Dissenters Shareholders 20% cash (4) Target P stock 80 % of transaction value P (2) S stock (1) P stock S merger (3) (6) Sale of 50% of operating assets for cash to unrelated buyer 4/30/2007 20 10 Example 2 (d) (1) Tender Offer Shareholders 60% of T stock for P P voting stock (5) 2/3 P voting stock and 1/3 cash for remaining 40% of T stock merger (4) Target (3) S stock (2) P stock – voting stock S 4/30/2007 21 Example 2 (e) Shareholders P (4) Target (5) T merges into P 4/30/2007 50% P voting stock and 50% cash (2) S stock S (1) P stock voting common merger (3) 22 11 Example 2 (f) Shareholders P (4) 50% P voting stock and 50% cash Target (5) P makes § 338 election (2) S stock (1) P stock S merger (3) 4/30/2007 23 Example 2 (g) Shareholders P (4) Target (5) T merges into New S created by P 4/30/2007 50% P voting stock and 50% cash (2) S stock (1) P stock S merger (3) 24 12 Example 2 (h) a) P stock to 80% shareholders Shareholders (4) b) P notes to 20% P shareholders (dissenters) (2) S stock (1) P stock & P notes S Target merger (3) 4/30/2007 25 Example 2 (i) a) P stock & P notes to 80% shareholders Shareholders (4) b) Cash to 20% shareholders dissenters P (1) P stock & P notes (2) S stock S Target merger (3) 4/30/2007 26 13 Example 2 (j) Shareholders (1) owned 30% of T P (5) (2) P stock (3) S stock S Target merger (4) (4) 70% of T stock issued for P stock to T shareholders (except P) 4/30/2007 27 14