My topic for the October 2015 conference was "Surviving and Profiting from an Activist Proxy Contest". My presentation technique has evolved to where I use the slides as supporting images for my talks. Accordingly, viewing the slides by themselves isn't a particularly useful way to learn much about my topic.

1. Surviving
and
Profiting
from an
Activist Proxy Contest

2. ✓ Audit
✓ Financial results
✓ Senior debt facility
✓ ERP roll out

3. Stock
Performance

6. Agenda
•How it begins
•What to expect
•After the settlement
•Lessons learned

7. Source: Gibson Dunn (2014/2015)

8. Source: Citi Global Perspectives and Solutions (2013)

10. Texas Law
6 months / 5%

11. Lessons
1. Know your state law

12. Lessons
1. Know your state law
2. Know your opposition

14. Lessons
1. Know your state law
2. Know your opposition
3. Use a virtual data room

17. Lessons
1. Know your state law
2. Know your opposition
3. Use a virtual data room
4. Stay out of courthouse

18. CFO’s To Do List
1. Set meeting/record dates

19. CFO’s To Do List
1. Set meeting/record dates
2. Hire proxy solicitor

20. CFO’s To Do List
1. Set meeting/record dates
2. Hire proxy solicitor
3. Develop communications
plan

21. CFO’s To Do List
1. Set meeting/record dates
2. Hire proxy solicitor
3. Develop communications
plan
4. Hire proxy examiner

22. Fight Letters

23. Lessons
1. Know your state law
2. Know your opposition
3. Use a virtual data room
4. Stay out of courthouse
5. Promote your own plan

25. Lessons
1. Know your state law
2. Know your opposition
3. Use a virtual data room
4. Stay out of courthouse
5. Promote your own plan
6. Understand ISS

26. Voting Results
Annual Meeting: Aug 7, 2013
Record Date: June 10, 2013
CUSIP No.: 131255-101
Date: 07/31/13 WHITE lead over blue 275,000
Shares O/S: 8,000,000
Quorum: 7,360,000 92.00%
COMPANY ACTIVIST HEDGE FUND LP
FOR** % of O/S AGAINST** % of O/S WTH / ABS** % of O/S FOR** % of O/S AGAINST** % of O/S WTH / ABS** % of O/S
BROADRIDGE BENEFICIAL VOTE TOTAL BROADRIDGE BENEFICIAL VOTE TOTAL
1a. Director 1 1,000,000 12.50% - 0.00% 9,000 0.11% 1a. Director 1 3,475,000 43.44% - 0.00% 5,000 0.06%
1b. Director 2 1,000,000 12.50% - 0.00% 9,000 0.11% 1b. Director 2 3,475,000 43.44% - 0.00% 5,000 0.06%
1c. Director 3 1,000,000 12.50% - 0.00% 9,000 0.11% 1c. Director 3 3,475,000 43.44% - 0.00% 5,000 0.06%
1d. Director 4 1,000,000 12.50% - 0.00% 9,000 0.11% 1d. Director 4 3,475,000 43.44% - 0.00% 5,000 0.06%
1e. Director 5 1,000,000 12.50% - 0.00% 9,000 0.11% 1e. Director 5 3,475,000 43.44% - 0.00% 5,000 0.06%
2. Ratification of Auditors 1,000,000 12.50% 5,000 0.06% 5,000 0.06% 2. Ratification of Auditors 2,900,000 36.25% 300,000 3.75% 400,000 5.00%
CORPORATE ELECTION SERVICES REGISTERED VOTE TOTAL REGISTERED VOTE TOTAL
1a. Director 1 2,750,000 34.38% - 0.00% - 0.00% 1a. Director 1 - 0.00% - 0.00% - 0.00%
1b. Director 2 2,750,000 34.38% - 0.00% - 0.00% 1b. Director 2 - 0.00% - 0.00% - 0.00%
1c. Director 3 2,750,000 34.38% - 0.00% - 0.00% 1c. Director 3 - 0.00% - 0.00% - 0.00%
1d. Director 4 2,750,000 34.38% - 0.00% - 0.00% 1d. Director 4 - 0.00% - 0.00% - 0.00%
1e. Director 5 2,750,000 34.38% - 0.00% - 0.00% 1e. Director 5 - 0.00% - 0.00% - 0.00%
2. Ratification of Auditors 2,750,000 34.38% - 0.00% - 0.00% 2. Ratification of Auditors - 0.00% - 0.00% - 0.00%
CUMULATIVE VOTE TOTAL* CUMULATIVE VOTE TOTAL
1a. Director 1 3,750,000 46.88% - 0.00% 9,000 0.11% 1a. Director 1 3,475,000 43.44% - 0.00% 5,000 0.06%
1b. Director 2 3,750,000 46.88% - 0.00% 9,000 0.11% 1b. Director 2 3,475,000 43.44% - 0.00% 5,000 0.06%
1c. Director 3 3,750,000 46.88% - 0.00% 9,000 0.11% 1c. Director 3 3,475,000 43.44% - 0.00% 5,000 0.06%
1d. Director 4 3,750,000 46.88% - 0.00% 9,000 0.11% 1d. Director 4 3,475,000 43.44% - 0.00% 5,000 0.06%
1e. Director 5 3,750,000 46.88% - 0.00% 9,000 0.11% 1e. Director 5 3,475,000 43.44% - 0.00% 5,000 0.06%
2. Ratification of Auditors 3,750,000 46.88% 5,000 0.06% 5,000 0.06% 2. Ratification of Auditors 2,900,000 36.25% 300,000 3.75% 400,000 5.00%

27. Settlement

28. New Expanded Board

30. Post-Settlement Board
+ Advantages
Added skills / expertise
“Outsider” perspective
- Disadvantages
Director fees / expenses
Longer meetings
More meeting preparation materials
? Diversity

32. Stock
Performance

33. Stock
Performance

34. Questions
?