Short presentation from the 2010 MHIAC conference in Denver, CO.

1. March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com 1031 Like-Kind Exchanges (LKEs) Significant Cash Flow and Asset Management Benefits for Automation and Industrial Enterprises

2. March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com What Are 1031 Exchanges? Established tax strategy since 1921 Allows deferral of tax gain recognition on sale of capitalized assets if sale proceeds are then reinvested in “like-kind” replacement property Cash flow benefit depends on combined tax rates, but usually ~40%

3. March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com What Are 1031 Exchanges? “Like-kind” defined Types of exchange: simultaneous, single (forward delayed), reverse, improvement, program How exchanges are structured Role of Qualified Intermediary

4. Eligibility: What Kinds of Assets are Amenable to LKE? Real Estate: all real estate is like-kind “Personal Property”: all non-real estate business use assets Intangibles: licenses, mineral rights, patents, etc. GAC and NAICS classifications March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com

5. Eligibility: What Kinds of Assets are Amenable to LKE? Key Industries Heavy Equipment/ Construction/ Contracting Oil & Gas Manufacturing Telecom/IT/ Health Care Mining Transportation Rental Leasing Utilities Other... March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com

6. Questions? Q&A March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com

7. Contact and Information Where to go for more information http://IRS.gov http://www4.law.cornell.edu/uscode/uscode26/usc_sec_26_00001031----000-.html http://accruit.com/resources/tax-code-and-resources/ March 30th & 31st, 2010 Mile High Industrial and Automation Conference www.mhiac.com