CCC will be managed by three (3) managers, who initially will be the founders and investing members. CCC will calculate returns on a per deal basis.
The Managers will seek out and review investment opportunities on an on-going basis. Each potential investment will be reviewed in a similar manner. One or more of the Managers will conduct the initial screen of the prospective portfolio company against CCC’s internally developed criteria. Then, for investment opportunities that satisfy the initial screening process, the prospective portfolio company will make a presentation to the members of CCC at one of the periodic member meetings.
Although many of the investment opportunities will be located in Arkansas, the Managers will also present certain investment opportunities outside of the State of Arkansas to the members.
After initial presentations, CCC will further evaluate each attractive prospective portfolio company through an additional due diligence process. The due diligence process for prospective portfolio companies will be defined and documented. The due diligence analysis will include management assessments, a review of the competitive landscape, and a review of the viability of the marketability and scalability of the technology. Results of due diligence analysis will be reviewed in a subsequent CCC investment meeting to determine whether there is general agreement on the potential of the prospective portfolio company.
All final investment decisions will require a majority vote of the CCC Membership. Members will meet approximately 6-8 times per year to review prospective portfolio companies. The meetings will last 2-3 hours and take place in Conway. Members are encouraged to participate in at least 80% of the meetings.
During the first two years of the Company’s operation, CCC anticipates to have annual administrative expenses of approximately Fifteen Thousand Dollars ($15,000). In the following years, CCC anticipates to have annual administrative expenses of approximately Five Thousand Dollars ($5,000).
Administrative expenses include a part-time person for bookkeeping, scheduling of meetings, and reporting to investors, annual tax-related expenses, and occasional legal fees primarily related to portfolio company investment acquisitions or dispositions. The Managers will use a portion of the entire purchase price of the membership interests to pay administrative and operating costs of the Company. The Company may also, by vote or written consent of a majority interest of the voting Members, make a capital call for up to $500 per Member in any given year to assist with administrative expenses.