SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
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)
August 22, 2002
August 27, 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
Schultz PRG Liquidating Investments, Ltd.
--------------------------------------------------------------------------------
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 3,892,336(1)(2)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
3,892,336 (1)(2)
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,892,336 (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)
6.0 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
PN
================================================================================
(1) These shares are held by Schultz PRG Liquidating Investments, Inc. (the
"Partnership"). The Partnership is deemed to share voting and dispositive
power of the shares owned by the Partnership with PRG Schultz Liquidating
Investments GP, L.L.C., the Partnership's General Partner (the "General
Partner") and Howard Schultz, the Partnership's Limited Partner and sole
owner of the General Partner. Mr. Howard Schultz is a Director of
PRG-Schultz International, Inc.
(2) The Partnership acquired 4,450,452 shares on August 22, 2002. On August 27,
2002, the Partnership sold 558,116 shares. See Item 4. The amount reported
reflects such sale.
2
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
PRG Schultz Liquidating Investments GP, L.L.C.
--------------------------------------------------------------------------------
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 3,892,336(1)(2)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
3,892,336 (1)(2)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,892,336 (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)
6.0 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
00
================================================================================
(1) These shares are held by Schultz PRG Liquidating Investments, Inc. (the
"Partnership"). PRG Schultz Liquidating Investments GP, L.L.C., the
Partnership's General Partner (the "General Partner") is deemed to share
voting and dispositive power of the shares owned by the Partnership with
the Partnership and Howard Schultz, the Partnership's Limited Partner and
sole owner of the General Partner. Mr. Howard Schultz is a Director of
PRG-Schultz International, Inc.
(2) The Partnership acquired 4,450,452 shares on August 22, 2002. On August 27,
2002, the Partnership sold 558,116 shares. See Item 4. The amount reported
reflects such sale.
3
================================================================================
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
0
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 3,892,336(1)(2)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
3,892,336(1)(2)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
3,892,336 (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)
6.0 percent
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) These shares are held by Schultz PRG Liquidating Investments, Inc. (the
"Partnership"). Mr. Howard Schultz is deemed to share voting and
dispositive power of the 3,892,336 shares owned by the Partnership with the
Partnership and PRG Schultz Liquidating Investments GP, L.L.C., the
Partnership's General Partner of which Mr. Howard Schultz is the sole
owner. Mr. Schultz is a Director of PRG-Schultz International, Inc.
(2) The Partnership acquired 4,450,452 shares on August 22, 2002. On August 27,
2002, the Partnership sold 558,116 shares. See Item 4. The amount reported
reflects such sale.
4
================================================================================
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
0
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 500,000 (1)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
500,000 (1)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
500,000(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) These shares are held by The Andrew H. Schultz Irrevocable Trust, of which
Mr. Schultz is the trustee and beneficiary. Andrew Schultz resigned as a
Director of PRG-Schultz International, Inc. on August 27, 2002, but remains
as Executive Vice President.
5
================================================================================
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 500,000(1)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
500,000 (1)
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
500,000 (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) These shares are held by The Andrew H. Schultz Irrevocable Trust, of which
Andrew H. Schultz is the trustee and beneficiary. Andrew Schultz resigned
as a Director of PRG-Schultz International, Inc. on August 27, 2002 but
remains as Executive Vice President.
6
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The A.H. Schultz HHS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Andrew H. Schultz is the trustee and beneficiary of The A.H. Schultz
HHS (2001) GST Trust.
7
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The A.H. Schultz LVS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Andrew H. Schultz is the trustee and beneficiary of The A.H Schultz LVS
(2001) GST Trust.
8
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Leslie Schultz(1)
--------------------------------------------------------------------------------
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
0
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Leslie Schultz is the spouse of Howard Schultz.
9
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Nate Levine(1)
--------------------------------------------------------------------------------
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
--------------------------------------------------------------------------------
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. Levine resigned as a Director of PRG-Schultz International, Inc. on
August 27, 2002.
10
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Arthur N. Budge, Jr. (1)
--------------------------------------------------------------------------------
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
133,295(2)
NUMBER OF SHARES
8 BENEFICIALLY OWNED BY EACH Shared Voting Power
REPORTING PERSON WITH 0
9 Sole Dispositive Power
133,295(2)
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
133,295 (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. Budge is a Director of PRG-Schultz International, Inc.
(2) These shares are subject to currently exercisable options.
11
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Zachary Herman Schultz Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Zachary Herman Schultz Trust.
12
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Gabriella Schultz Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Gabriella Schultz Trust.
13
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The Samuel Joel Schultz Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Howard Schultz is a trustee of The Samuel Joel Schultz Trust.
14
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The HHS Charitable Lead Annuity Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Messrs. Andrew H. Schultz and Daniel A. Schultz and Ms. Jaynie Romaner
serve as co-trustees.
15
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Daniel A. Schultz(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Mr. Daniel A. Schultz is the trustee and beneficiary of The D.A. Schultz
HHS (2001) GST Trust and The D.A. Schultz LVS (2001) GST Trust. Mr. Daniel
A. Schultz is also co-trustee of The HHS Charitable Lead Trust and LVS
Charitable Lead Trust.
16
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
Jaynie Schultz Romaner(1)
--------------------------------------------------------------------------------
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 0(1)
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
IN
================================================================================
(1) Ms. Jaynie Schultz Romaner is the trustee and beneficiary of The J.S.
Romaner HHS (2001) GST Trust and The J.S. Romaner LVS (2001) GST Trust. Ms.
Romaner is also co-trustee of The HHS Charitable Lead Trust and LVS
Charitable Lead Trust.
17
================================================================================
Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The LVS Charitable Lead Annuity Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11)
Excludes Certain Shares /_/
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Messrs. Andrew H. Schultz and Daniel Schultz and Ms. Jaynie Schultz Romaner
are co-trustees of The LVS Charitable Lead Annuity Trust.
18
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The D.A. Schultz HHS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Daniel A. Schultz is the trustee and beneficiary of The D.A. Schultz
HHS (2001) GST Trust.
19
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The J.S. Romaner HHS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Ms. Jaynie Schultz Romaner is the trustee and beneficiary of The J.S.
Romaner HHS (2001) GST Trust.
20
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The D.A. Schultz LVS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
================================================================================
(1) Mr. Daniel A. Schultz is the trustee and beneficiary of The D.A. Schultz
LVS (2001) GST Trust.
21
================================================================================
1 Name of Reporting Persons
I.R.S. Identification Nos. of Above Persons
The J.S. Romaner LVS (2001) GST Trust(1)
--------------------------------------------------------------------------------
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 0
9 Sole Dispositive Power
0
10 Shared Dispositive Power
0
--------------------------------------------------------------------------------
11 Aggregate Amount Beneficially Owned by Each Reporting Person
0
--------------------------------------------------------------------------------
12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares
--------------------------------------------------------------------------------
13 Percent of Class Represented by Amount in Row (11)
0
--------------------------------------------------------------------------------
14 Type of Reporting Person
OO
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(1) Ms. Jaynie Schultz Romaner is the trustee and beneficiary of The J.S.
Romaner LVS (2001) GST Trust.
22
ITEM 2. IDENTITY AND BACKGROUND
(a) This Schedule 13D is filed by the following (collectively, the
"Reporting Persons"):
Schultz PRG Liquidating Investments, Ltd. (the "Partnership");
PRG Schultz Liquidating Investments G.P., L.L.C.(the "General
Partner")
Howard Schultz;
Andrew H. Schultz;
Andrew H. Schultz Irrevocable Trust;
Leslie Schultz;
Nate Levine;
Arthur N. Budge, Jr.;
Daniel A. Schultz;
Jaynie Schultz Romaner
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
(b) The business address for Schultz PRG Liquidating Investments, Ltd.,
PRG Schultz Liquidating Investments GP, L.L.C., Howard Schultz, Leslie
Schultz, The Zachary Herman Schultz Trust, The Gabriella Schultz Trust
and The Samuel Joel Schultz Trust is 9241 LBJ Freeway, Suite 100,
Dallas, Texas 75243. The business address for Andrew H. Schultz, The
Andrew H. Schultz Irrevocable Trust, The A. H. Schultz HHS (2001) GST
Trust, The A.H. Schultz LVS (2001) GST Trust, The HHS Charitable Lead
Annuity Trust and The LVS Charitable Lead Annuity Trust is 11553 E.
Ricks Circle, Dallas, Texas 75230. The business address for Daniel
Schultz, The D.A. Schultz HHS (2001) GST and the D.A. Schultz LVS
(2001) GST Trust is 77 Saxton Hill Road, Essex Junction, Vermont
05452. The business address for Jaynie Romaner Schultz, The J.S.
Romaner HHS (2001) GST and the J.S. Romaner LVS (2001) GST Trust is
11222 St. Michaels Drive, Dallas, Texas 75230. 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 resigned as Chairman of the Board of PRG-Schultz on
August 27, 2002 and remains as a Director. Andrew H. Schultz resigned
as a Director on August 27, 2002. He will continue as Executive Vice
President of PRG-Schultz. Arthur N. Budge, Jr. serves as a Director of
PRG-Schultz and serves as president and chief executive officer of
Five States Energy Company, LLC, an owner of a portfolio of oil and
gas investments. Nate Levine resigned as a Director of PRG-Schultz on
August 27, 2002 and serves as chief executive officer of ETAN
Industries which owns a cable system operator. The Partnership is
organized under the laws of Texas. The principal business of the
Partnership is holding the shares of PRG-Schultz common stock. The
General Partner is organized under the laws of Texas and its principal
business is acting as the general partner of the Partnership.
23
(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 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 August 22, 2002, Howard Schultz, transferred 4,450,452 shares of
PRG-Schultz common stock to the Partnership for no consideration.
ITEM 4. PURPOSE OF TRANSACTION
See Item 3 of the Schedule 13D.
This Amendment No. 3 amends the Schedule 13D (the "Schedule 13D") filed
with the Securities and Exchange Commission (the "Commission") on February 4,
2002 as amended on February 22, 2002 and on March 27, 2002 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 D.A. Schultz HHS
(2001) GST Trust, The J.S. Romaner HHS (2001) GST Trust, The A.H. Schultz HHS
(2001) GST Trust, The D.A. Schultz LVS (2001) GST Trust, The J.S. Romaner LVS
(2001) GST Trust and The A.H. Schultz LVS (2001) GST Trust.
This amendment to the Schedule 13D relates to the transfer of shares of
PRG- Schultz common stock from Howard Schultz to the Partnership to facilitate
the sales discussed below. This amendment also relates to the sale of shares of
PRG-Schultz common stock by the Partnership, Andrew Schultz, The Andrew H.
Schultz Irrevocable Trust, Leslie Schultz, The Samuel J. Schultz Trust, The
Gabrielle Schultz Trust, The Zachary H. Schultz Trust, The A.H. Schultz HHS
(2001) GST Trust, The A.H. Schultz LVS (2001) GST Trust, The HHS Charitable Lead
Annuity Trust, The LVS Charitable Lead Annuity Trust, The D.A. Schultz HHS
(2001) GST Trust, The J.S. Romaner HHS (2001) GST Trust, The D.A. Schultz LVS
(2001) GST Trust and The J.S. Romaner LVS (2001) GST Trust to four entities in
private transactions. Leslie Schultz and each of the trusts other than The
Andrew H. Schultz Irrevocable Trust have entered into such sales to liquidate
their holdings of PRG-Schultz common stock. The Partnership currently intends to
hold the unsold shares it acquired for investment. Unless otherwise defined
herein, all capitalized terms shall have the meanings ascribed to them in the
Schedule 13D.
(a)-(j)
None of the Reporting Persons has any intention of acquiring control of
PRG-Schultz other than Mr. Howard Schultz and Mr. Budge serving as Directors of
PRG-Schultz and Mr. Andrew Schultz serving as Executive Vice President. Howard
Schultz resigned as Chairman of the Board on August 27, 2002, but remains as a
Director. Andrew Schultz resigned as a Director on August 27, 2002, bur remains
as Executive Vice President. Nate Levine resigned as a Director on August 27,
2002. John M. Cook has been elected as the new Chairman of the Board of
PRG-Schultz, and the size of the Board has been reduced from 13 to 11.
24
On August 16, 2002, the following parties entered into a Stock Purchase
Agreement to sell the indicated number of shares of PRG common stock to Blum
Strategic Partners II, L.P. ("Blum") and one of its affiliates on August 27,
2002 for $8.72 per share:
The Partnership 279,058
Leslie Schultz 376
Andrew Schultz 649,707
The Andrew H. Schultz Irrevocable Trust 1,585,001
The A.H. Schultz HHS (2001) GST Trust 3,451
The A.H. Schultz LVS (2001) GST Trust 3,450
The Zachary Herman Trust 10,194
The Gabriela Schultz Trust 10,193
The Samuel Joel Schultz Trust 10,194
The HHS charitable Lead Annuity Trust 317,410
The LVS Charitable Lead Annuity Trust 317,409
The D.A. Schultz HHS (2001) GST Trust 288,016
The J.S. Romaner HHS (2001) GST Trust 288,016
The D.A. Schultz LVS (2001) GST Trust 288,016
The J.S. Romaner LVS (2001) GST Trust 288,016
On August 16, 2002, the following parties entered into a Stock Purchase
Agreement to sell the indicated number of shares of PRG common stock to
Berkshire Fund V Investment Corp. ("Berkshire") and one of its affiliates on
August 27, 2002 for $8.72 per share:
The Partnership 279,058
Leslie Schultz 377
Andrew Schultz 649,707
The Andrew H. Schultz Irrevocable Trust 1,585,001
The A.H. Schultz HHS (2001) GST Trust 3,450
The A.H. Schultz LVS (2001) GST Trust 3,451
The Zachary Herman Trust 10,193
The Gabriela Schultz Trust 10,194
The Samuel Joel Schultz Trust 10,193
The HHS charitable Lead Annuity Trust 317,409
The LVS Charitable Lead Annuity Trust 317,410
The D.A. Schultz HHS (2001) GST Trust 288,016
The J.S. Romaner HHS (2001) GST Trust 288,016
The D.A. Schultz LVS (2001) GST Trust 288,016
The J.S. Romaner LVS (2001) GST Trust 288,016
The Reporting Persons disclaim membership in a group with Blum and
Berkshire and disclaim beneficial ownership of any of the shares that Blum and
Berkshire hold.
Pursuant to this transaction, on August 27, 2002, the Partnership granted
options pursuant to a Second Option Agreement with PRG-Schultz pursuant to which
PRG-Schultz has the right to purchase up to 1,446,168 shares of the common stock
owned by the Partnership at $8.72 per share plus interest.
On August 27, 2002, the Partnership entered into promissory notes with Blum
and one of its affiliates whereby Blum and its affiliate agreed to lend the
Partnership $12,610,585 in the aggregate, which is secured by 1,446,168 shares
of the Partnership's PRG-Schultz common stock pursuant to a Pledge Agreement.
Blum's and its affiliate's rights to these pledged shares are subordinate to
PRG-Schultz's Second Option pursuant to a Subordination Agreement entered among
Blum, its affiliate, PRG-Schultz and the Partnership.
25
Similarly, on August 27, 2002, the Partnership granted options pursuant to
a First Option Agreement with PRG-Schultz pursuant to which PRG-Schultz has the
right to purchase up to an additional 1,446,168 shares of the common stock owned
by the Partnership at $8.72 per share plus interest.
On August 27, 2002, the Partnership entered into promissory notes with
Berkshire and one of its affiliates whereby Berkshire and its affiliate agreed
to lend the Partnership $12,610,585 in the aggregate, which is secured by
1,446,168 shares of the Partnership's PRG-Schultz common stock pursuant to a
Pledge Agreement. Berkshire's and its affiliate's rights to these pledged shares
are subordinate to the PRG-Schultz First Option pursuant to a Subordination
Agreement entered among Berkshire, its affiliate, PRG-Schultz and the
Partnership.
Pursuant to the promissory notes entered into with Blum and Berkshire and
their respective affiliates, Berkshire and Blum and each affiliate have the
right to call any shares pledged that are not purchased by PRG-Schultz pursuant
to its options, and the Partnership has the right to put to Berkshire and Blum
and each affiliate any such shares that are not called.
The Stock Purchase Agreement with Blum and its affiliate is incorporated by
reference to Exhibit II to the Schedule 13D Amendment filed by certain
affiliated Blum entities on August 26, 2002. The Stock Purchase Agreement with
Berkshire and its affiliate is incorporated by reference to Exhibit 99.2 to the
Schedule 13D Amendment filed by certain affiliated Berkshire entities on August
26, 2002. The First Option Agreement with Berkshire is incorporated by reference
to Exhibit 99.8 herein and the Form of Second Option Agreement with Blum is
incorporated by reference to Exhibit 99.9 herein. The Form of Promissory Note
with Blum and its and with Berkshire and its affiliate is incorporated by
reference to Exhibit 99.5 to the Schedule 13D Amendment filed by certain
affiliated Berkshire entities on August 26, 2002. The Form of Pledge Agreement
with Blum and its affiliate and with Berkshire and its affiliate is incorporated
by reference to Exhibit 99.6 to the Schedule 13D Amendment filed by certain
affiliated Berkshire entities on August 26, 2002. The Form of Subordination
Agreement with Blum and its affiliate and with Berkshire and its affiliate is
incorporated by reference to Exhibit 99.7 to the Schedule 13D Amendment filed by
certain affiliated Berkshire entities on August 26, 2002.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
(a)-(b) See Items 7-13 of the cover pages.
(c) See Item 4 above. No other transactions in PRG-Schultz'
securities have been effected by an individual named in Item 2
of the Schedule 13D within the last sixty days.
(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) As of August 27, 2002, Andrew Schultz and the Andrew H.
Schultz Irrevocable Trust ceased to beneficially own more than
five percent of the outstanding shares of common stock of
PRG-Schultz.
In addition, the following will cease to be included as
Reporting Persons on Schedule 13D as a member of the group
filing this Report for as long as they continue to own no
shares of common stock of PRG-Schultz: Leslie Schultz, The
A.H. Schultz HHS (2001) GST Trust, The A.H. Schultz LVS (2001)
GST Trust, The Zachary Herman Trust, The Gabriela Schultz
Trust, The Samuel Joel Schultz Trust , the HHS charitable Lead
Annuity Trust, The LVS Charitable Lead Annuity Trust, The D.A.
Schultz HHS (2001) GST Trust, The J.S. Romaner HHS (2001) GST
Trust, The D.A. Schultz LVS (2001) GST Trust and The J.S.
Romaner LVS (2001) GST Trust.
In addition, since Nate Levine no longer serves as a Director
of PRG-Schultz, he will cease to be included as a Reporting
Person on Schedule 13D as a member of the group filing this
Report.
26
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE ISSUER
See item 6 of the Schedule 13D and Item 6 of Amendment No. 1 to Schedule
13D filed on February 21, 2002 and Amendment No. 2 filed on April 16, 2002.
On August 16, 2002, the parties to the shareholder agreement entered into
on January 24, 2002, amended such agreement by entering into a Consent and
Amendment Agreement, effective as of August 27, 2002, pursuant to which the
shares of PRG-Schultz common stock being sold to Blum and Berkshire and their
respective affiliates by each of the Reporting Persons will no longer be subject
to the transfer, voting and other restrictions imposed by the shareholder
agreement. The shares retained by the Partnership and The Andrew H. Schultz
Irrevocable Trust, including the shares subject to the PRG-Schultz options and
pledged to Blum and Berkshire and their respective affiliates, retain such
restrictions until January 24, 2004. In addition, under this agreement, Howard
Schultz, the Partnership, Andrew Schultz and the Andrew H. Schultz Irrevocable
Trust agreed 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
parties, other than certain specified transfers until January 24, 2004.
Also under this agreement, with respect to the shares owned by the
Partnership and the Andrew H. Schultz Irrevocable Trust, Howard Schultz and
Andrew Schultz agreed, that as to matters submitted to a vote of PRG-Schultz's
shareholders, to vote and take such actions as are necessary to cause any shares
of PRG-Schultz common stock beneficially owned by such parties to be voted
consistent with the recommendation of a specified majority of PRG-Schultz's
Board of Directors, subject to certain qualifications. In addition, Howard
Schultz and Andrew Schultz agreed that they will not directly or indirectly
acquire record or beneficial ownership of any shares of PRG-Schultz common stock
prior to 271 days after the date of the agreement, except in connection with a
recapitalization, reclassification, stock split, stock dividend, combination,
subdivision or similar transaction in respect of shares of PRG-Schultz common
stock. Also under this agreement, Howard Schultz and Andrew Schultz agreed to
terminate the registration rights previously granted to them and the Andrew H.
Schultz Irrevocable Trust.
In addition, John Toma was released from all restrictions under the
shareholder agreement and John Cook became subject to modified restrictions on
transfer. The Consent and Amendment Agreement is incorporated by reference to
Exhibit 99.13 herein.
PRG-Schultz approved an amendment to its Shareholder Protection Rights Plan
(the "Plan") permitting Blum and Berkshire and their respective affiliates to
acquire beneficial ownership of its shares in excess of 15% without triggering
the provisions of the Plan.
27
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).
99.5 Stock Purchase Agreement between Blum Strategic Partners II,
L.P. and certain entities and individuals dated February 21,
2002 (incorporated by reference to Exhibit 99.5 of Amendment
No. 1 to Schedule 13D filed on February 21, 2002).
99.6 Stock Purchase Agreement dated August 16, 2002 (incorporated
by reference to Exhibit II to the Schedule 13D Amendment
filed by certain affiliated Blum entities on August 26,
2002.)
99.7 Stock Purchase Agreement dated August 16, 2002 (incorporated
by reference to Exhibit 99.2 to the Schedule 13D Amendment
filed by certain affiliated Berkshire entities on August 26,
2002.)
99.8 Form of First Option Agreement dated August 27, 2002
99.9 Form of Second Option Agreement dated August 27, 2002
99.10 Form of Promissory Note dated August 27, 2002 (incorporated
by reference to Exhibit 99.5 to the Schedule 13D Amendment
filed by certain affiliated Berkshire entities on August 26,
2002.)
99.11 Form of Pledge Agreement dated August 27, 2002.
(incorporated by reference to Exhibit 99.6 to the Schedule
13D Amendment filed by certain affiliated Berkshire entities
on August 26, 2002.)
99.12 Form of Subordination Agreement dated August 27, 2002
(incorporated by reference to Exhibit 99.7 to the Schedule
13D Amendment filed by certain affiliated Berkshire entities
on August 26, 2002.)
99.13 Consent and Amendment Agreement dated August 16, 2002.
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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: August 30, 2002
Schultz PRG Liquidating Investments, Ltd.
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz, Sole Owner
PRG Schultz Liquidating Investments GP, L.L.C.
It's General Partner
PRG Schultz Liquidating Investments GP, L.L.C.
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz, Sole Owner
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz
/s/ Leslie Schultz
--------------------------------------------------------
By: Leslie Schultz
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner
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
/s/ Nate Levine
--------------------------------------------------------
By: Nate Levine
/s/ Arthur N. Budge, Jr.
--------------------------------------------------------
By: Arthur N. Budge, Jr.
A.H. Schultz HHS (2001) GST Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
A.H. Schultz LVS (2001) GST Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz , Trustee
The HHS Charitable Lead Annuity Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
/s/ Jaynie Schultz
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The LVS Charitable Lead Annuity Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The D.A. Schultz HHS (2001) GST Trust
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
The J.S. Romaner HHS (2001) GST Trust
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The D.A. Schultz LVS (2001) GST Trust
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
The J.S. Romaner LVS (2001) GST Trust
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, 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: August 30, 2002
Schultz PRG Liquidating Investments, Ltd.
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz, Sole Owner
PRG Schultz Liquidating Investments GP, L.L.C.
It's General Partner
PRG Schultz Liquidating Investments GP, L.L.C.
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz, Sole Owner
/s/ Howard Schultz
--------------------------------------------------------
By: Howard Schultz
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz
/s/ Leslie Schultz
--------------------------------------------------------
By: Leslie Schultz
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner
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
/s/ Nate Levine
--------------------------------------------------------
By: Nate Levine
/s/ Arthur N. Budge, Jr.
--------------------------------------------------------
By: Arthur N. Budge, Jr.
A.H. Schultz HHS (2001) GST Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
A.H. Schultz LVS (2001) GST Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz , Trustee
The HHS Charitable Lead Annuity Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
/s/ Jaynie Schultz
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The LVS Charitable Lead Annuity Trust
/s/ Andrew H. Schultz
--------------------------------------------------------
By: Andrew H. Schultz, Trustee
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The D.A. Schultz HHS (2001) GST Trust
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
The J.S. Romaner HHS (2001) GST Trust
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee
The D.A. Schultz LVS (2001) GST Trust
/s/ Daniel A. Schultz
--------------------------------------------------------
By: Daniel A. Schultz, Trustee
The J.S. Romaner LVS (2001) GST Trust
/s/ Jaynie Schultz Romaner
--------------------------------------------------------
By: Jaynie Schultz Romaner, Trustee