Securities issued in M&A transactions
to separate value of contingent events

Referred to as:

• Contingent valuation rights CVRs
• Contingent payment rights CPRs

Celina Financial 1993

First Boston 12.02.88

3M 10.13.88

Slater Development 5.09.88

Lorimar 11.04.85

Lifemark 11.17.81

IRS revenue ruling 88-31

Hoenig Group 2002

• Merger consideration was $11.35 plus one CPR
• CPR covered potential insurance claims
• Press release
• Proxy statement
• Merger agreement amendment
• Escrow agreement
• Custodian and Paying Agent Agreement

Earn-Outs