Post Merger Integration Issues, Risks, and Dependencies

Excerpt from Finance Slide

Issues and Risks	Mitigation Steps	Status
Key employees not retained throughout long transition  period	Retention bonus plan	Awaiting HR approval
Financial, reporting and log settlement system  consolidation does not occur in time to capture  synergies	Hire external IT resources and finance  resources to develop, test & implement	Awaiting detailed IT  project plan
Organization consolidation does not occur in time to  capture synergies		N/A, most synergies  are dependent on  system consolidation.  See system issue.
Combined budgeting, reporting and forecasting across  two financial systems not effective	Be prepared to address ineffectiveness  from a technical or accuracy standpoint  and ineffectiveness due to lack of  training or adoption of standard reports	TBD
Gap in insurance coverages		Add to workplan to  resolve
IT capacity and prioritization		Awaiting detailed IT  project plan
Internal control / SEC compliance failures during  transition	Retain key employees, continue Target  internal control monitoring	Pending

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