Purpool Rules
Twelve Criteria For A
Pooling of Interests
Rule 1: Subsidiary or division of another company (two-year rule)
Yes..........Criterion not satisfied........Purchase
No...........Criterion satisfied..............Proceed to Rule 2
Rule 2: Independent from other company in the combination (10% rule)
Yes..........Criterion satisfied..............Proceed to Rule 3
No...........Criterion not satisfied........Purchase
Rule 3: Single transaction or specific plan (either must be completed in one year)
Yes..........Criterion satisfied.............Proceed to Rule 4
No...........Criterion not satisfied.......Purchase
Rule 4: Exchange of common stock (90% "substantially all" rule)
Yes..........Criterion satisfied.............Proceed to Rule 5
No...........Criterion not satisfied.......Proceed to Rule 4B
Rule 4B: "Substantially all" rule: (100% net assets)
Yes..........Criterion satisfied.............Proceed to Rule 5
No...........Criterion not satisfied.......Purchase
Rule 5: No equity changes in contemplation of combination (two-year rule)
Yes..........Criterion satisfied.............Proceed to Rule 6
No...........Criterion not satisfied.......Purchase
Rule 6: Shares reacquired only for purposes other than combination
Yes..........Criterion satisfied.............Proceed to Rule 7
No...........Criterion not satisfied.......Purchase
Rule 7: No change in proportionate equity interests
Yes..........Criterion satisfied.............Proceed to Rule 8
No...........Criterion not satisfied.......Purchase
Rule 8: Voting rights immediately exercisable
Yes..........Criterion satisfied.............Proceed to Rule 9
No...........Criterion not satisfied.......Purchase
Rule 9: Pending provisions subsequent to the combination
Yes..........Criterion not satisfied.......Purchase
No...........Criterion satisfied.............Proceed to Rule 10
Rule 10: Issuer makes agreements to reacquire shares
Yes..........Criterion not satisfied.......Purchase
No...........Criterion satisfied.............Proceed to Rule 11
Rule 11: Issuer makes agreements to benefit former stockholders
Yes..........Criterion not satisfied.......PurchasePurchase
No...........Criterion satisfied.............Proceed to Rule 12
Rule 12: Issuer plans to dispose of assets within two years
Yes..........Criterion not satisfied.......Purchase
No...........Criterion satisfied.............Pooling
of Interests