ESOP Design & Installation

Design
Documentation
IRS Approval
Employee Communications

Design

Menke, in connection with corporate management, will design a plan for the acquisition of stock by the ESOP. Such plan will include advice and assistance in structuring the transaction so as to comply with all applicable IRS contribution and allocation limits. Such financial plan will include a free preliminary financial analysis regarding the feasibility of the plan. At your request, we will also prepare a detailed study regarding the feasibility of the plan.

Documentation

Menke will work with you and your counsel to design and draft the ESOP and the related Employee Stock Ownership Trust Agreement to reflect and facilitate the company’s desires and preferences with respect to the various items covered therein. Each ESOP is custom drafted, based upon a 20 page checklist, to reflect your own personal desires and preferences with respect to the provisions contained therein.

At your request, Menke will also work with you and your counsel to design and draft the necessary transaction documents, including the Stock Purchase Agreement, the ESOP Loan Agreement, the ESOP Promissory Note, and the ESOP Pledge Agreement, as well as all of the necessary corporate resolutions and Plan Committee minutes.

IRS Approval

When the ESOP and the related documents are in a form satisfactory to you, Menke will prepare the application to the Internal Revenue Service for a Determination Letter regarding IRS qualification of the Plan. Menke will submit all of the necessary application forms and will explain to and work with the IRS in connection with obtaining IRS approval. Menke guarantees IRS approval of the Plan.

Employee Communications

Menke prepares and provides various employee communications materials, including general explanation booklets, which explain the background and philosophy of ESOPs, and Summary Plan Descriptions, which explain the technical aspects of the Plan.

At Menke, we want to make sure company employees have a good understanding of the new Plan being presented to them. Our experienced Employee Communication Service Representatives design and personally conduct custom-made slide presentations to effectively communicate the plan to your employees and answer any questions they may have about the program.