METHOD 1
The Company
will provide to employee investors at the end of each fiscal quarter a
list of all Share Transactions during that quarter. A Share Transaction
is defined as a block of shares purchased for consideration of $XX or
more by a third party acting at arms length to the Company. The share
value will be determined at the end of each fiscal quarter. Prior to
the Plan inception date, the Plan will adopt the following revised share
formula referencing financial information of the Company or its trading
value on a public stock exchange or based on an opinion from an
independent qualified person:
Value
($) per share = | Multiplier determined by Valuation Committee
x
Annual Gross Revenue
|
| | Total
number of Common Shares issued and outstanding |
METHOD 2
The value of
an ESOP Share on any particular Valuation Date will be calculated using
the following formula:
Value
($) per share = | Consolidated Book Value
–
Dividends declared or paid
|
| | Total
number of Common Shares issued and outstanding |
The value of
an ESOP share will be determined once each year as of XX and will be
provided to Employee Shareholders within XX days. Each Share Value so
determined will remain in effect until a new Share Value is calculated
as of the next Valuation Date.
METHOD 3
The value of
an ESOP Share on any particular Valuation Date is based on the earnings
of the Company and its subsidiaries in the preceding X years plus
additional share capital raised I the preceding fiscal year. The
earning is based on the “maintainable” earnings of the Company. The
Share Value is computed as follows:
Value
($) per share = | Multiplier determined by Valuation Committee
x
Average Adjusted After tax Annual Earnings of past X years
+ New
share capital raised in preceding fiscal year
|
| | Total
number of Common Shares issued and outstanding |
The value of
an ESOP share will be determined once each year. Each Share Value so
determined will remain in effect until a new Share Value is calculated
as of the next Valuation Date.
METHOD 4
The Purchase
Price for each ESOP Share will be that amount calculated in accordance
with the following formula for the last completed fiscal year:
Value
($) per share = | Multiplier determined by Valuation Committee
x
[(Multiplier x Retained Earnings) + (Multiplier x Average
Adjusted After tax Annual Earnings of past X years)]
+
Capital Stock
+
Contributed Surplus
|
| | Total
number in the Capital of the Company |
The number of
shares in the capital of the Company will be determined on a fully
diluted basis, including, without limitation, all Options earned as at
the end of the last completed fiscal year.
METHOD 5
The value of
an ESOP Share on any particular Valuation Date will be calculated using
the following formula:
Value
($) per share = | Adjusted Shareholder’s Equity
|
| | Total
number of Common Shares issued and outstanding |
WHERE:
+/-
Shareholder’s equity as per financial statements
+/-
Difference between cost and fair market value of capital assets
+ Goodwill
-
Dividends declared or
paid
= Adjusted
Shareholder’s Equity
+/- Adjusted
After-tax Annual Earnings
x
Multiplier determined by Valuation Committee
= Goodwill
+/- Pre-tax
earnings as per financial statements
+ Bonuses
paid for tax purposes
+/- Unusual
losses/(gains) on disposal of capital assets
+/- Unusual
non-recurring expenses/(revenues)
+/- Difference between implicit interest rate and market
interest rate on loans
from related companies
-
Deferred income
taxes
= Adjusted
After-tax Annual Earnings
The value of
an ESOP share will be determined once each year. Each Share Value so
determined will remain in effect until a new Share Value is calculated
as of the next Valuation Date.
