Member
ESOP Lawyer, Tabitha Crosscut, leads three other lawyers, our Banker, and "the Boys" through a thick pile of ESOP documents.
The ESOP provides a seamless and stable transition of ownership, and because the company has reinvested its profits over the years, it is very strong financially, making the transition much easier on the company.
An ESOP is a way to give back to the people - the company's most valued assets - who helped to build the company over the years.
Lastly and most important, an ESOP gives the employee owners a piece of mind for their future. If the company continues to do well, everyone shares in the success!
The lawyers arrived that first day in November and the first third of the Gear Motions Stock was transferred to the ESOP. The Company borrows money from the Bank on behalf of the ESOP. As the loan principle is repaid, an equivalent amount of stock goes to everyone's ESOP account very much like the 401k does. The sale will be spread over the next ten years. (1/3 now, 1/3 in 2010 and the last 1/3 in 2015.)
Steve and Jeff Haines (Sam's brothers) reviewing some of the documents
during the closing with Pat
Sam Haines and the current Management team stay on throughout the process. (Sam may retire in 2015 but we don't see him slowing down yet.)
Sam continues as President until at least 2015 (heck, he'll only be seventy!). He votes ESOP stock as trustee for the employees until about 2010 when the employees become the majority owners. At that time, the Company will begin to look for another Trustee and or a Board.