SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. ___)
PRG-Schultz International, Inc.
----------------
(Name of Issuer)
Common Stock, no par value per share
------------------------------------
(Title of Class of Securities)
69357C 10 7
--------------
(CUSIP Number)
B. Joseph Alley, Jr., Esq. Curtis Swinson, Esq.
Arnall Golden Gregory LLP Malouf Lynch Jackson & Swinson
2800 One Atlantic Center 600 Preston Common East
1201 West Peachtree Street 8115 Preston Road
Atlanta, Georgia 30309-3450 Dallas, Texas 75225-6342
-----------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
January 24, 2002
----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box |_|.
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7(b) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act, (however, see the
Notes).
===============================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Howard Schultz
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)__
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization United States
--------------------------------------------------------------------------------
7 Sole Voting Power
4,450,452
--------------------------------------------------
NUMBER OF SHARES
8 BENEFICIALLY OWNED Shared Voting Power
BY EACH REPORTING 61,914(1)
PERSON WITH
--------------------------------------------------
9 Sole Dispositive Power
4,450,452
--------------------------------------------------
10 Shared Dispositive Power
61,914(1)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
4,512,366(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares __
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
7.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Includes 753 shares held by Mr. Schultz's spouse. Also includes 20,387
shares held by The Zachary Herman Schultz Trust, 20,387 shares held by The
Gabriella Schultz Trust and 20,387 shares held by The Samuel Joel Schultz
Trust, of which Mr. Schultz is a trustee.
2
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Andrew H. Schultz
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required Pursuant to
Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
1,797,422
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 3,725,336(1)
-----------------------------------------------
9 Sole Dispositive Power
1,797,422
-----------------------------------------------
10 Shared Dispositive Power
3,725,336(1)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
5,522,758(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
8.7 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Includes 3,725,336 shares held by the Andrew H. Schultz Irrevocable Trust
of which Mr. Schultz is the trustee and beneficiary.
3
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Andrew H. Schultz Irrevocable Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 3,725,336(1)
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
3,725,336(1)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,725,336(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
5.7 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Andrew H. Schultz is the trustee and beneficiary.
4
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Leslie Schultz
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a G (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) |_|
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power 753
-----------------------------------------------
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 0
-----------------------------------------------
9 Sole Dispositive Power
753
-----------------------------------------------
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
753(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
===============================================================================
(1) Leslie Schultz is the spouse of Howard Schultz.
5
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Nate Levine
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
26,200
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 0
-----------------------------------------------
9 Sole Dispositive Power
26,200
-----------------------------------------------
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
26,200(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Mr. Nate Levine is a director of PRG-Schultz.
6
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Arthur N. Budge, Jr.
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
United States
--------------------------------------------------------------------------------
7 Sole Voting Power
248,295(1)
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 0
----------------------------------------------
9 Sole Dispositive Power
248,295(1)
----------------------------------------------
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
248,295 (1) (2)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
-------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Mr. Arthur N. Budge, Jr. is a director of PRG-Schultz.
(2) These shares are subject to currently exercisable options.
7
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Zachary Herman Schultz Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ------------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 20,387
------------------------------------------------
9 Sole Dispositive Power
0
------------------------------------------------
10 Shared Dispositive Power
20,387
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
20,387(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent ___
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Zachary Herman Schultz Trust.
8
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Gabriella Schultz Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Powe
0
------------------------------------------------
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 20,387
------------------------------------------------
9 Sole Dispositive Power
0
------------------------------------------------
10 Shared Dispositive Power
20,387
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
20,387(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Gabriella Schultz Trust.
9
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Samuel Joel Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 20,387
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
20,387
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
20,387(1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Samuel Joel Trust.
10
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The HHS Charitable Lead Annuity Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 690,153
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
690,153
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
690,153 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The HHS Charitable Lead Annuity Trust.
11
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Harold Berman
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 4,140,908
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
4,140,908
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
4,140,908 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
6.5 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Mr. Harold Berman is the trustee of The HHS Charitable Lead Annuity Trust,
The LVS Charitable Lead Annuity Trust, The Daniel Alan Schultz HHS (2001)
GST Trust, The Jaynie Schultz Romaner HHS (2001) GST Trust, The Andrew
Harold Schultz HHS (2001) GST Trust, The Daniel Alan Schultz LVS (2001) GST
Trust, The Jaynie Schultz Romaner LVS (2001) GST Trust and The Andrew
Harold Schultz LVS (2001) GST Trust.
12
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The LVS Charitable Lead Annuity Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 690,153
----------------------------------------------
9 Sole Dispositive Power
0
----------------------------------------------
10 Shared Dispositive Power
690,153
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
690,153 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The LVS Charitable Lead Annuity Trust.
13
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Daniel Alan Schultz HHS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 686,700
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
686,700
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
686,700 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Daniel Alan Schultz HHS (2001) GST
Trust.
14
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Jaynie Schultz Romaner HHS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES -----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 686,700
-----------------------------------------------
9 Sole Dispositive Power
0
-----------------------------------------------
10 Shared Dispositive Power
686,700
-----------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
686,700 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Jaynie Schultz Romaner HHS (2001)
GST Trust.
15
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Andrew Harold Schultz HHS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 6,901
----------------------------------------------
9 Sole Dispositive Power
0
----------------------------------------------
10 Shared Dispositive Power
6,901
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
6,901 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Andrew Harold Schultz HHS (2001)
GST Trust.
16
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Daniel Alan Schultz LVS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 686,700
----------------------------------------------
9 Sole Dispositive Power
0
----------------------------------------------
10 Shared Dispositive Power
686,700
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
686,700 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Daniel Alan Schultz LVS (2001) GST
Trust.
17
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Jaynie Schultz Romaner LVS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 686,700
----------------------------------------------
9 Sole Dispositive Power
0
----------------------------------------------
10 Shared Dispositive Power
686,700
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
686,700 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
1.1 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Jaynie Schultz Romaner LVS (2001)
GST Trust.
18
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Andrew Harold Schultz LVS (2001) GST Trust
--------------------------------------------------------------------------------
2 Check the Appropriate Box if a Member of a Group (a)X
(b)___
--------------------------------------------------------------------------------
3 SEC Use Only
--------------------------------------------------------------------------------
4 Source of Funds
00
--------------------------------------------------------------------------------
5 Check Box if Disclosure of Legal Proceedings is Required
Pursuant to Items 2(d) or 2(e) ___
--------------------------------------------------------------------------------
6 Citizenship or Place of Organization
Texas
--------------------------------------------------------------------------------
7 Sole Voting Power
0
NUMBER OF SHARES ----------------------------------------------
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 6,901
----------------------------------------------
9 Sole Dispositive Power
----------------------------------------------
10 Shared Dispositive Power
6,901
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
6,901 (1)
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
Less than one percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Harold Berman is the trustee of The Andrew Harold Schultz LVS (2001)
GST Trust.
19
Item 1. Security and Issuer
This statement relates to the common stock, no par value per share, of
PRG-Schultz International, Inc., a Georgia corporation ("PRG-Schultz") f/k/a The
Profit Recovery Group International, Inc. The principal executive offices of
PRG-Schultz are located at:
2300 Windy Ridge Parkway
Suite 100 North
Atlanta, Georgia 30339
Item 2. Identity and Background
(a) This Schedule 13D is filed by:
Howard Schultz;
Andrew H. Schultz;
Andrew H. Schultz Irrevocable Trust;
Leslie Schultz;
Nate Levine;
Arthur N. Budge, Jr.;
Harold Berman;
The Zachary Herman Schultz Trust;
The Gabriella Schultz Trust;
The Samuel Joel Schultz Trust;
The HHS Charitable Lead Annuity Trust;
The LVS Charitable Lead Annuity Trust;
The Daniel Alan Schultz HHS (2001) GST Trust;
The Jaynie Schultz Romaner HHS (2001) GST Trust;
The Andrew Harold Schultz HHS (2001) GST Trust;
The Daniel Alan Schultz LVS (2001) GST Trust;
The Jaynie Schultz Romaner LVS (2001) GST Trust; and
The Andrew Harold Schultz LVS (2001) GST Trust
(collectively, the"Reporting Persons").
(b) The business address for Howard Schultz, Andrew Schultz and
Leslie Schultz is 9241 LBJ Freeway, Suite 100, Dallas, Texas
75243. The business address for Harold Berman is 8333 Douglas,
Suite 100, Dallas, Texas 75225. The business address for Nate
Levine is 13355 Noel Rd. Suite 2100, Dallas, Texas 75240. The
business address for Arthur N. Budge, Jr. is 4925 Greenville,
Suite 1220, Dallas, Texas 75206.
(c) Howard Schultz is Chairman of the Board of PRG-Schultz, Andrew H.
Schultz is a Director of PRG-Schultz and serves as Executive Vice
President and Nate Levine and Arthur N. Budge, Jr. serve as
Directors of PRG-Schultz. In addition, Nate Levine serves as
chief executive officer of ETAN Industries which owns a cable
system operator and Arthur Budge serves as president and chief
executive officer of Five Sates Energy Company , an owner of a
portfolio of oil and gas investments. Harold Berman is an
attorney and practices law in Dallas, Texas. Howard Schultz is
the father of Andrew Schultz and Leslie Schultz is the spouse of
Howard Schultz. PRG-Schultz's address is set forth above in Item
1.
(d) During the past five years, none of the Reporting Persons has
been convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors).
(e) During the past five years, none of the Reporting Persons was a
party to a civil proceeding of a judicial or administrative body
of competent jurisdiction as a result of which such person was or
20
is subject to a judgment, decree or final order enjoining future
violations of or prohibiting or mandating activity subject to
federal or state securities laws or finding any violation with
respect to such laws.
(f) Each individual set forth in Item 2(a) above is a citizen of the
United States.
Item 3. Source and Amount of Funds or Other Consideration
On January 24, 2002, the Reporting Persons acquired all shares of PRG-Schultz
common stock beneficially owned pursuant to the acquisition by PRG-Schultz of
substantially all of the assets of Howard Schultz & Associates International,
Inc. ("HSA-Texas"), substantially all of the outstanding stock of HS&A
International Pte Ltd. and all of the outstanding stock of Howard Schultz &
Associates (Asia) Limited, Howard Schultz & Associates (Australia), Inc. and
Howard Schultz & Associates (Canada), Inc., each an affiliated foreign operating
company of HSA-Texas, pursuant to an amended and restated agreement and plan of
reorganization by and among PRG-Schultz, HSA-Texas, Howard Schultz, Andrew H.
Schultz and certain trusts dated December 11, 2001 (the "Asset Agreement") and
an amended and restated plan of reorganization by and among PRG-Schultz, Howard
Schultz, Andrew H. Schultz, Andrew H. Schultz Irrevocable Trust and Leslie
Schultz dated December 11, 2001 (the "Stock Agreement"). The Asset Agreement and
the Stock Agreement are incorporated herein by reference to Annex A and Annex B
to PRG-Schultz's Definitive Proxy Statement filed on December 20, 2001.
Item 4. Purpose of Transaction
See Item 3 above. The Reporting Persons currently intend to hold the shares for
investment; provided, however, certain Reporting Persons intend to sell up to
1,106,684 shares of PRG-Schultz common stock pursuant to a Registration
Statement on Form S-3 filed on December 18, 2002 or in private transactions.
(a)-(j) Except as set forth above, none.
In connection with the HSA-Texas acquisition, the size of
the PRG-Schultz board of directors was expanded from 9 to 13
members. Howard Schultz serves as the chairman of the board
of directors and Andrew H. Schultz, Arthur N. Budge, Jr.,
and Nate Levine serve as directors of PRG-Schultz.
Item 5. Interest in Securities of the Issuer
(a)-(b) See Items 7-13 of the cover pages.
(c) See Item 3. No other transactions in PRG-Schultz' securities
have been effected by an individual named in Item 2 above
within the last sixty days, except that Nate Levine
purchased 1,100 shares on December 13, 2001 and 10,000
shares on December 14, 2001.
(d) No other person has the right to receive or the power to
direct the receipt of dividends from, or the proceeds from
the sales of, the securities of PRG-Schultz.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer
In connection with the HSA-Texas acquisitions, PRG-Schultz HSA-Texas,
Howard Schultz, Andrew Schultz, the Andrew H. Schultz Irrevocable Trust, of
which Andrew Schultz is the trustee and the beneficiary, certain other
affiliated Schultz family trusts, John M. Cook, the chief executive officer of
PRG-Schultz and John M. Toma, the vice chairman of PRG-Schultz entered into a
shareholder agreement.
Pursuant to the shareholder agreement, the parties will agree not to effect
any transfer of PRG-Schultz common stock that such party now owns of record or
acquires and to take such actions as are necessary to prevent any transfers of
PRG-Schultz common stock beneficially owned by such party, other than certain
specified transfers.
In addition, the parties to the shareholder agreement will agree, as to
matters submitted to a vote of PRG-Schultz's shareholders, to vote and take such
21
actions as necessary to cause any shares of PRG-Schultz common stock
beneficially owned by such party to be voted consistent with the recommendation
of a specified majority of PRG-Schultz's board of directors, subject to certain
qualifications.
PRG-Schultz and each of the parties to the Asset Agreement and Stock
Agreement and each additional holder of HSA-Texas voting or nonvoting common
stock entered into a registration rights agreement. On January 18, 2002, under
the registration rights agreement, PRG-Schultz filed a registration statement on
Form S-3 with respect to 1,106,684 shares of PRG-Schultz common stock received
by Howard and Andrew Schultz and certain trusts in the HSA-Texas acquisitions.
PRG-Schultz will also be required upon written request from a holder of
registrable securities to register the shares of PRG-Schultz common stock issued
in the HSA-Texas acquisitions for resale pursuant to a firm commitment
underwritten public offering, subject to certain exceptions; provided, however,
that PRG-Schultz will not be required to file more than one registration
statement during any six month period or file a registration statement,
regarding a request covering less than $5.0 million of such PRG-Schultz common
stock in a firm commitment underwritten offering. The registration rights
agreement also provides that all registration expenses will be paid by
PRG-Schultz except under certain circumstances, including when the registration
request is subsequently withdrawn by a majority of such shareholders, unless the
shareholders agree that the request will count as one demand registration under
the registration rights agreement.
The shareholder agreement and registration rights agreement are
incorporated herein by reference to Exhibits 99.3 and 99.4 hereto, respectively.
Item 7. Material to be Filed as Exhibits
99.1 Asset Agreement (incorporated herein by reference to Annex A to
PRG-Schultz's Definitive Proxy Statement filed on December 20,
2001).
99.2 Stock Agreement (incorporated herein by reference to Annex B to
PRG-Schultz's Definitive Proxy Statement filed on December 20,
2001).
99.3 Shareholder Agreement (incorporated by reference to Exhibit 10.3
filed with PRG-Schultz's Registration Statement on Form S-4
(333-69142) filed on September 7, 2001).
99.4 Registration Rights Agreement (incorporated by reference to
Exhibit 10.2 filed with PRG-Schultz's Registration Statement on
Form S-4 (333-69142) filed on September 7, 2001).
22
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.
Dated: February 4, 2002
/s/ Howard Schultz
------------------------------------
By: Howard Schultz
/s/ Andrew H. Schultz
------------------------------------
By: Andrew H. Schultz
/s/ Arthur N. Budge, Jr.
------------------------------------
By: Arthur N. Budge, Jr.
/s/ Harold Berman
------------------------------------
By: Harold Berman
/s/ Nate Levine
------------------------------------
By: Nate Levine
/s/ Leslie Schultz
------------------------------------
By: Leslie Schultz
Andrew H. Schultz Irrevocable Trust
/s/ Andrew H. Schultz
------------------------------------
By: Andrew H. Schultz , Trustee
The Zachary Herman Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The Gabriella Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The Samuel Joel Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The HHS Charitable Lead
Annuity Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The LVS Charitable Lead Annuity Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Daniel Alan Schultz HHS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Jaynie Schultz Romaner
HHS (2001) GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Andrew Harold Schultz HHS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Daniel Alan Schultz LVS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Jaynie Schultz Romaner LVS
(2001) GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Andrew Harold Schultz LVS
(2001) GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
JOINT FILING AGREEMENT
The undersigned acknowledge and agree that the foregoing statement on Schedule
13D is filed on behalf of each of the undersigned and that all subsequent
amendments to this statement shall be filed on behalf of each of the undersigned
without the necessity of filing additional joint filing agreements. The
undersigned acknowledge that each shall be responsible for the timely filing of
such amendments, and for the completeness and accuracy of the information
concerning it contained therein, but shall not be responsible for the
completeness and accuracy of the information concerning the others, except to
the extent that it knows or has reason to believe that such information is
inaccurate.
This Agreement may be executed in counterparts and each of such counterparts
taken together shall constitute one and the same instrument.
Dated: February 4, 2002
/s/ Howard Schultz
------------------------------------
By: Howard Schultz
/s/ Andrew H. Schultz
------------------------------------
By: Andrew H. Schultz
/s/ Arthur N. Budge, Jr.
------------------------------------
By: Arthur N. Budge, Jr.
/s/ Harold Berman
------------------------------------
By: Harold Berman
/s/ Nate Levine
------------------------------------
By: Nate Levine
/s/ Leslie Schultz
------------------------------------
By: Leslie Schultz
Andrew H. Schultz Irrevocable Trust
/s/ Andrew H. Schultz
------------------------------------
By: Andrew H. Schultz , Trustee
The Zachary Herman Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The Gabriella Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The Samuel Joel Schultz Trust
/s/ Howard Schultz
------------------------------------
By: Howard Schultz, Trustee
The HHS Charitable Lead
Annuity Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The LVS Charitable Lead Annuity Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Daniel Alan Schultz HHS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Jaynie Schultz Romaner
HHS (2001) GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Andrew Harold Schultz HHS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Daniel Alan Schultz LVS (2001)
GST Trust
/s/ Harold Berman
------------------------------------
By: Harold Berman, Trustee
The Jaynie Schultz Romaner LVS
(2001) GST Trust
/s/ Harold Berman
------------------------------------