Creating

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Creating MaintainingAn Ownership Environment

• The Parksite Group Model

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Creating and Maintaining An Ownership Culture

• Owner Number One ESOP Company
• Receives annual allocation of ESOP shares
• Company 100 Employee Owned
• Owner Number Two Non-ESOP Company
• Buys Company shares in 401K
• Receives Gainsharing performance allocation
• Do they behave differently daily in their work
  place?

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In An ESOP Ownership Culture

• The daily behavior of associates is different
  than in a non-ESOP culture
• That unique behavior must be defined by the
  associates in each ESOP Company

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Presentation Outline

• The Parksite Company Profile
• ESOP Issues
• Creating and Maintaining an Ownership Culture

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The Parksite Company Profile

• Mission
• Locations Structure
• Products
• History
• Down Stream Marketing

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Statement of Purpose

• Mission Statement
• Parksite Inc. is a sales, marketing and
  distribution organization. We offer specialized
  products, training, and value-added services to
  selected market segments within the building
  industry.

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Locations Structure

• 16 Locations, including offices, warehouse and
  selection centers
• 359 Sales Customer Service Associates
• 241 sales and demand creation
• 20 Logistics Group
• 98 Management and Supporting Staff
• S Corporation
• 100 ESOP owned

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Company Structure

• Who We Are . . .
• A Sales, Marketing Distribution Organization
• Parksite Surfaces
• Parksite Plunkett-Webster
• Earth Landscape Solutions
• Millwork Unlimited
• Parksite Appliance Solutions

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The Parksite Group - 2006

• Total Sales 500,000,000
• Number of Associates 359
• Locations 16 locations

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The Parksite Group

• Products by Business Unit

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Parksite Surfaces

• Premium Surfaces Supplier to the Countertop
  Channel
• DuPont Corian, DuPont Zodiaq, Granite

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Parksite Plunkett-Webster

• Parksite Plunkett-Webster
• Specialty Wholesale Building Material Distributor
• DuPont Tyvek, Trex, Azek Trimboards,
  Deckorators

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Earth Landscape Solutions

• Earth Landscape Solutions
• Wholesale Distributor to the Landscape and
  Playground Industries
• Groundscape, DuPont Garden Products

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Millwork Unlimited

• Millwork Unlimited
• Creates Custom and Standard Millwork items from
  Cellular PVC
• Custom Trim and Moulding Initiative

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Parksite Appliance Solutions

• Parksite Appliance Solutions
• Appliance Solutions Provider
• Electrolux Brand Appliances, OptiFlame Electric
  Fireplace

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Co FounderJohn Morrisroe

• Insert video of John Morrisroe talking about
  products

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History of Parksite and our ESOP

• 1971 Parksite opens its doors
• 1974 Parksite begins Corian distribution
  with DuPont
• 1978 Parksite created a use for an innovative
  product, Tyvek, resulting in a change in
  building practices worldwide.
• 1979 PW obtained Tyvek distribution rights
• 1990 ESOP ownership structure (75)
  introduced at Parksite
• 1997 ESOP ownership becomes (100)
  Subchapter S Corp
• 2000 Parksite acquires Plunkett-Webster
• 1915 Plunkett-Webster is founded
• 1921 Sales of softwood products added
• 2001 The Parksite Group acquires Metro-Sloan
• 2002 The Parksite Group is named to Inc.
  Magazines list of 500 Fastest Growing
  Privately Held Companies
• 2004 Expand in Florida and to the Huntsville,
  Alabama Market
• 2005 - Addition of West Coast Warehouse.
  Acquisition of Eastern
  Distributors in Philadelphia, PA

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Co FounderJohn Morrisroe

• Insert video of John Morrisroe talking about ESOP
  formation

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Downstream Marketing

• George Pattee video

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Downstream Marketing
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ESOP Issues

• Share Distribution
• ESOP Management
• ESOP Behavioral Commitment
• With A Retirement Outcome
• Communicating Our ESOP

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Share Distribution

• Length of Payout
• Twenty year loan
• Shares distributed for 20 years

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ESOP Management

• Champions ESOP Committee
• ESOP Committee 12 Associates
• Selected from each location
• Term of Service 1 years
• Expert at their location on the ESOP
• Meet to
• Review ESOP initiatives
• Take on major projects

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ESOP Committee Charter

• Our ESOP is managed by a Committee of
  representatives from each Company location. The
  Committee provides ongoing representative support
  for our ESOP to all associates in the
  organization.
• The members of the Committee are charged with
• Communicating the operation of our ESOP to all
  associates
• Serving as the sounding board at all our
  locations for ESOP issues and questions
• Representing each location as the spokesperson in
  ESOP related activities
• Completing annual ESOP designated project goals
• Remaining at the cutting edge of ESOP operations
  through readings, education and training
• Attending annual ESOP Conferences to stay abreast
  of the latest thinking in ESOP legislation and
  products and to network and share ideas with
  other ESOP companies
• Providing education and training on the ESOP at
  each location
• Members of the ESOP Committee will serve one year
  terms. Members will be appointed by each location
  manager based on their experience with the
  Company, dedication to our ESOP culture,
  communication skills and personal integrity and
  recognition by location associates. Members are
  eligible for re-appointment as location committee
  members on an annual review basis.

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ESOP Behavioral Commitment With A Retirement
Outcome

• Daily
• ESOP Focus is on how Owners Treat Each Other
• Long-Term
• ESOP Culture and Communication drive Ownership
  Thinking . . . Resulting in an Outstanding
  Retirement Benefit

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Communicating Our ESOP
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ESOP Communications Business Strategy

• Parksite will differentiate itself from its
  competitors by communicating to associates,
  customers, suppliers and the public that
• 100 employee ownership of our ESOP inspires
  different
• positive behaviors from associates
• Those behaviors define a unique Company culture
• That culture is built through education, training
• and performance management
• It is reinforced through recognition and
  celebrations
• The outcome of that culture is the delivery of
  products and services with a superior
• Personal concern for customers/supplier needs
• Personal care for product and service delivery
• Personal commitment to the development of long
  term relationships
• Our cultures goal is to instill in each
  associate-owner a commitment to the Company as an
  extension and expression of his/her personal

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ESOP Communication at Parksite
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Creating and Maintaining An Ownership Culture

• Ownership Behaviors
• Reinforcing Ownership Behaviors
• Focusing How We Get There

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LaSalle Bank Video

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Ownership Behaviors

• How do owners behave differently?
• How do we identify ownership behavior?
• What is ownership behavior at Parksite?
• These are the questions the Champions took on in
  2004

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The Parksite Group

• Succeeding in the Parksite culture
• What is expected of all associates every day?

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Identifying Ownership Behaviors

• Champions began with over 100 statements of
  behavior
• Analyzed, reviewed, rewrote and selected the best
• All associates, reviewed, edited rewrote
• Senior mgt reviewed, edited and rewrote
• Ended with the three key management behaviors for
  Parksite Associates

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The Parksite Group

• Expectations of Our ESOP Culture
• Produce your best results
• Meet your commitments - keep your promises!
• Treat everyone with respect

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Expectations of our ESOP Culture

• Produce your best results
• Challenge what you do and the way you do it
• Have a plan for what you want to accomplish each
  day
• Develop yourself gain mastery over a field and
  be a role model for others
• Benchmark yourself against best practices
• Be passionate about what you do have a can do
  attitude
• Be a contributor act like an owner doing what it
  takes improve the business
• Embrace teamwork and work cooperatively with
  others
• Act with integrity and honesty
• Take risks and recognize failure as part of the
  process

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The Parksite Group

• Expectations of Our ESOP Culture
• Meet your commitments - keep your promises !
• Do what you say you will do
• Exceed Expectations
• Commit and follow through
• Focus on one transaction at a time

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Expectations of our ESOP Culture

• Treat everyone with respect
• Treat customers (both internal external) so
  they feel that person knows what he/she is
  doing, understands my needs and knows how to
  treat people
• Treat all associates with dignity and respect.
  Encourage and celebrate the accomplishments of
  fellow associates

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Expectations of our ESOP Culture

• Produce your best results
• Meet your commitments - keep your promises!
• Treat everyone with respect

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Reinforcing Ownership Behavior

• Hiring
• Enrollment
• Performance Management
• Corrective Action
• Successories Posters

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Recruitment Resource Guide
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Table of Contents

• I. INTRODUCTION 3
• II. EMPLOYMENT 4
• III. CHARACTERISTICS COMMON TO ALL GOOD INTERVIEW
  QUESTIONS 6
• IV. THE ANATOMY OF AN INTERVIEW 7
• V. BEHAVIORAL INTERVIEWING 7
• VI. WHAT YOU CAN AND CANNOT ASK DURING AN
  INTERVIEW 8
• VII. UNDERSTANDING EMPLOYMENT LAW LEGISLATION 10
• VIII. INTERVIEWING GUIDE 11
• IX. EXAMPLE OF INTERVIEW QUESTIONS 3
• X. INTERVIEW QUESTIONS FOR SALES POSITIONS 16
• XI. INTERVIEW QUESTIONS FOR MANAGEMENT
  POSITIONS 23
• XII. INTERVIEW QUESTIONS FOR ENTRY-LEVEL
  POSITIONS 28
• XIII. INTERVIEW QUESTIONS FOR CLERICAL
  POSITIONS 34
• XIV. SECOND INTERVIEW PROCESS 38
• XV. REFERENCE CHECKING 38
• XVI. OFFER PROCESS 39
• XVII. EMPLOYMENT OFFER 40

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Personal Commitment to our ESOP Culture
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Performance Discussion Document
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Performance Discussion Document
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Associate Expectations
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Focusing How We Get ThereOne Transaction at a
Time
Sale 2,000 Cost of sales (1,560)
78.0 Warehouse ( 80)
4.0 Sales ( 118) 5.9 General
( 86) 4.3 Operating
profit 156 Financing and taxes (
25) In the bank 131
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ITS A COMPANY CHOICE!

• As an Employee Owner, your RIGHT is to
  participate in value
• Your RESPONSIBILITY is to help create that value

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The Employee Ownership Performance Cycle

• Your actions
• Results
• Expectations
• Respect

• Company
• Performance
• Transaction at a time

• Your Rewards
• Share Value

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