-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HGQ/MVMo53dhrXEOcDsGaioAkqfw5lMp9BsQ85UCjPevJ3mgldUFT5IzY6Xpc8Qg 5SycaMoI5pRzHxCwuuROtA== 0000914062-02-000167.txt : 20020415 0000914062-02-000167.hdr.sgml : 20020415 ACCESSION NUMBER: 0000914062-02-000167 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20020301 GROUP MEMBERS: ANDREW H. SCHULTZ GROUP MEMBERS: ANDREW H. SCHULTZ IRREVOCABLE TRUST GROUP MEMBERS: HAROLD BERMAN GROUP MEMBERS: THE DANIEL ALAN SCHULTZ HHS (2001) GST TRUST GROUP MEMBERS: THE DANIEL ALAN SCHULTZ LVS (2001) GST TRUST GROUP MEMBERS: THE HHS CHARITABLE LEAD ANNUITY TRUST GROUP MEMBERS: THE JAYNIE SCHULTZ ROMANER HHS (2001) GST TRUST GROUP MEMBERS: THE JAYNIE SCHULTZ ROMANER LVS (2001) GST TRUST GROUP MEMBERS: THE LVS CHARITABLE LEAD ANNUITY TRUST FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SCHULTZ ANDREW H CENTRAL INDEX KEY: 0001166154 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 2300 WINDY RIDGE PARKWAY CITY: ATLANTA STATE: GA ZIP: 30339-8426 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: PRG SCHULTZ INTERNATIONAL INC CENTRAL INDEX KEY: 0001007330 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT [8700] IRS NUMBER: 582213805 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-49706 FILM NUMBER: 02564894 BUSINESS ADDRESS: STREET 1: 2300 WINDY RIDGE PKWY STREET 2: STE 100 N CITY: ATLANTA STATE: GA ZIP: 30339-8426 BUSINESS PHONE: 7707793900 MAIL ADDRESS: STREET 1: 2300 WINDY RIDGE PKWY STREET 2: STE 100 NORTH CITY: ATLANTA STATE: GA ZIP: 30339-8426 FORMER COMPANY: FORMER CONFORMED NAME: PROFIT RECOVERY GROUP INTERNATIONAL INC DATE OF NAME CHANGE: 19960207 SC 13D/A 1 prgschultz13da302.txt SCHEDULE 13D/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D/A Under the Securities Exchange Act of 1934 (Amendment No. 1) 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) February 21, 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 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 1,299,414 NUMBER OF SHARES ----------------------------------------------- 8 BENEFICIALLY OWNED BY EACH Shared Voting Power REPORTING PERSON WITH 3,670,002(1) ----------------------------------------------- 9 Sole Dispositive Power 1,299,414 ----------------------------------------------- 10 Shared Dispositive Power 3,670,002(1) - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 4,969,416(1) - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___ - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 7.8 percent - -------------------------------------------------------------------------------- 14 Type of Reporting Person IN ================================================================================ (1) Includes 3,670,002 shares held by the Andrew H. Schultz Irrevocable Trust of which Mr. Schultz is the trustee and beneficiary. 2 ================================================================================ 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 3,670,002(1) ----------------------------------------------- 9 Sole Dispositive Power 0 ----------------------------------------------- 10 Shared Dispositive Power 3,670,002(1) - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 3,670,002(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. 3 ================================================================================ 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 634,819 ----------------------------------------------- 9 Sole Dispositive Power 0 ----------------------------------------------- 10 Shared Dispositive Power 634,819 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 634,819 (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 HHS Charitable Lead Annuity Trust. 4 ================================================================================ 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 3,587,568 ----------------------------------------------- 9 Sole Dispositive Power 0 ----------------------------------------------- 10 Shared Dispositive Power 3,587,568 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 3,587,568 (1) - -------------------------------------------------------------------------------- 12 Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares ___ - -------------------------------------------------------------------------------- 13 Percent of Class Represented by Amount in Row (11) 5.6 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. 5 ================================================================================ 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 634,819 ---------------------------------------------- 9 Sole Dispositive Power 0 ---------------------------------------------- 10 Shared Dispositive Power 634,819 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 634,819 (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 LVS Charitable Lead Annuity Trust. 6 ================================================================================ 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 576,032 ----------------------------------------------- 9 Sole Dispositive Power 0 ----------------------------------------------- 10 Shared Dispositive Power 576,032 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 576,032 (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 Daniel Alan Schultz HHS (2001) GST Trust. 7 ================================================================================ 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 576,032 ----------------------------------------------- 9 Sole Dispositive Power 0 ----------------------------------------------- 10 Shared Dispositive Power 576,032 ----------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 576,032 (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 Jaynie Schultz Romaner HHS (2001) GST Trust. 8 ================================================================================ 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 576,032 ---------------------------------------------- 9 Sole Dispositive Power 0 ---------------------------------------------- 10 Shared Dispositive Power 576,032 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 576,032 (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 Daniel Alan Schultz LVS (2001) GST Trust. 9 ================================================================================ 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 576,032 ---------------------------------------------- 9 Sole Dispositive Power 0 ---------------------------------------------- 10 Shared Dispositive Power 576,032 - -------------------------------------------------------------------------------- 11 Aggregate Amount Beneficially Owned by Each Reporting Person 576,032 (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 Jaynie Schultz Romaner LVS (2001) GST Trust. 10 Item 4. Purpose of Transaction This Amendment No. 1 amends the Schedule 13D (the "Schedule 13D") filed with the Securities and Exchange Commission (the "Commission") on February 4, 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 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"). This amendment to the Schedule 13D relates to the sale of an aggregate of 1,106,684 shares of PRG-Schultz common stock by Andrew Schultz, executive vice president and director of PRG-Schultz, Andrew H. Schultz Irrevocable 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 Daniel Alan Schultz LVS (2001) GST Trust and The Jaynie Schultz Romaner LVS (2001) GST Trust to an affiliate of Blum Capital Partners LP ("Blum Capital Partners") in a private transaction on February 21, 2002 in the amounts set forth on Exhibit"A" of the Stock Purchase Agreement dated February 21, 2002, a copy of which is filed herewith as Exhibit 99.5. Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Schedule 13D. See Item 3 of the Schedule 13D. (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 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, except those reported in the Schedule 13D. (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 sale of shares of PRG-Schultz common stock, Blum Capital Partners, Andrew Schultz Andrew, H. Schultz Irrevocable 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 Daniel Alan Schultz LVS (2001) GST Trust and The Jaynie Schultz Romaner LVS (2001) GST entered into a stock purchase agreement dated February 21, 2002. A copy of the stock purchase agreement is filed herewith as Exhibit 99.5. In addition, 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. 11 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 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. On February 28, 2002, such registration statement on From S-3 was withdrawn because, as noted in Item 4 above, the securities whose resale was to be registered under the registration statement were sold in a private transaction to Blum Capital Partners. 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 a registration statement regarding a request covering less than $5.0 million of such PRG-Schultz common stock. 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). 99.5 Stock Purchase Agreement between Blum Strategic Partners II, L.P. and certain entities and individuals dated February 21, 2002. 12 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: March 1, 2002 /s/ Andrew H. Schultz ------------------------------------- Andrew H. Schultz /s/ Harold Berman ------------------------------------- Harold Berman Andrew H. Schultz Irrevocable Trust /s/ Andrew H. Schultz ------------------------------------- By: Andrew H. 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 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 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: March 1, 2002 /s/ Andrew H. Schultz ------------------------------------- Andrew H. Schultz /s/ Harold Berman ------------------------------------- Harold Berman Andrew H. Schultz Irrevocable Trust /s/ Andrew H. Schultz ------------------------------------- By: Andrew H. 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 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 1448938v1 EX-99.5 3 prgschultz13da302ex995.txt STOCK PURCHASE AGREEMENT STOCK PURCHASE AGREEMENT THIS STOCK PURCHASE AGREEMENT ("Agreement"), dated as of February 21, 2002, is made between Blum Strategic Partners II, L.P., a Delaware limited partnership ("Blum"), and each of the entities or individuals listed in Exhibit A hereto (each a "Seller," and collectively the "Sellers"). WHEREAS, the Sellers are the direct beneficial owners of 1,106,682 shares of common stock (the "Common Stock") of PRG-Schultz International, Inc. ("PRG"). WHEREAS, Blum desires to purchase, and the Sellers desire to sell, 1,106,682 shares of Common Stock owned by the Sellers (such shares of Common Stock, the "Shares"), upon the terms set forth herein, at a price of $9.3683 per share. WHEREAS, certain capitalized terms used herein are defined in Section 5.1 hereof. NOW, THEREFORE, in consideration of the premises and agreements hereinafter set forth, intending to be legally bound, the parties hereby agree as follows: ARTICLE I PURCHASE AND SALE OF THE SHARES; ASSIGNMENT OF REGISTRATION RIGHTS; THE CLOSING 1.1 Purchase and Sale of Shares. Upon the terms set forth herein, at the Closing (as defined in Section 1.3) the Sellers shall sell, assign, transfer and deliver to Blum and Blum shall accept and purchase from the Sellers the Shares, free and clear of all Encumbrances, for $9.3683 per Share, or an aggregate of $10,367,728.96, in immediately available funds. 1.2 Assignment of Registration Rights. Pursuant to Section 7.2 of the Registration Rights Agreement (the "Registration Rights Agreement") entered into as of January 24, 2002, by and among Profit Recovery Group International, Inc., a Georgia corporation, Howard Schultz & Associates International, Inc., a Texas corporation, and the persons listed on Exhibit A to the Registration Rights Agreement, the Sellers hereby assign to Blum their rights and interests in the Registration Rights Agreement with respect to the Shares. 1.3 Closing. Upon the terms contained in this Agreement, the closing of the purchase and sale of the Shares (the "Closing") shall take place at the offices of Blum Capital Partners, L.P., 909 Montgomery Street, Suite 400, San Francisco, California 94133, at 11:00 A.M., San Francisco Time, on the date hereof or at such other time and place as the Sellers and Blum shall mutually agree upon. The date on which the Closing takes place is referred to as the "Closing Date". 1.4 Deliveries by the Sellers. At the Closing, the Sellers are delivering to Blum the following: (a) stock certificates representing the Shares, accompanied by stock powers duly endorsed in blank or accompanied by duly executed instruments of transfer, with all necessary transfer tax and other revenue stamps affixed thereto; (b) a receipt for the payments provided for by Section 1.1 hereof; and (c) an opinion of Sellers' counsel in the form of Exhibit B hereto that the sale of Shares to Blum hereunder is made in compliance with the Securities Act or an available exemption therefrom. 1.5 Deliveries by Blum. At the Closing, Blum is delivering to the Sellers by wire transfer to the accounts of the Sellers previously provided in writing to Blum the payment provided for in Section 1.1 hereof. ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE SELLERS The Sellers represent and warrant to Blum as follows: 2.1 Authorization; Binding Obligation. This Agreement has been duly and validly executed and delivered by the Sellers and, assuming due authorization, execution and delivery by Blum, constitutes a legal, valid and binding obligation of the Sellers, enforceable against them in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other federal or state laws of general applicability relating to or affecting creditors' or secured 2 parties' rights and remedies generally and general principles of equity, whether considered in an action at law or in equity. The Sellers have the legal capacity and all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to perform its obligations hereunder. Such execution, delivery and consummation has been duly and validly authorized by all necessary action on the part of the Sellers, and no other corporate or other proceedings on the part of the Sellers are necessary to authorize such execution, delivery and consummation. 2.2 Title to the Shares. Immediately prior to the Closing, the Sellers were the record and beneficial owner of, and had good and marketable title to, the Shares free and clear of all Encumbrances. The Shares owned by the Sellers are validly issued, duly authorized and free of any preemptive rights; there are no voting trusts or other agreements or understandings to which the Sellers are a party with respect to the voting of the Shares. The Shares are not subject to any restrictions on transferability other than those imposed by the Securities Act and applicable state securities laws. There are no options, warrants, calls, commitments or rights of any character to purchase or otherwise acquire Shares from the Sellers pursuant to which the Sellers may be obligated to sell, transfer or otherwise dispose of any of the Shares. At the Closing, Blum is acquiring good and marketable title to the Shares, free and clear of all Encumbrances. 2.3 Consents and Approvals; No Violation. None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, or compliance with any of the provisions hereof, will (i) require any consent, waiver, approval, authorization or permit of, or filing with or notification to, or any other action by, any Governmental Authority by the Sellers, (ii) violate the certificate of incorporation or bylaws of the Sellers, or any Law of any Governmental Authority which may be applicable to the Sellers, or by which any of the Sellers' activities, properties or assets (including, without limitation, the Shares) may be bound or affected or (iii) violate, breach, or conflict with, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration or any obligation to pay or result in the imposition of any Encumbrance upon any of the property of the Sellers (including, without limitation, the Shares)) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, Encumbrance, contract, agreement, Permit, Order, or other instrument or obligation to which the Sellers are a party or by which any of the Sellers' activities, properties or assets (including, without 3 limitation, the Shares) may be bound or affected. 2.4 Brokers and Finders. No agent, broker, investment banker, financial advisor or other firm or person is or will be entitled to any broker's or finder's fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement. 2.5 Termination of Certain Agreements. Each contract or agreement between the Sellers and PRG or any other party which is binding upon the Sellers with respect to the Shares has been terminated so far as it relates to the Shares and is not and will not be binding upon Blum or the Shares after the Closing. PRG has approved of the assignment by the Sellers to Blum of the Sellers' rights under the Registration Rights Agreement so far as they relate to the Shares. There are no other contracts, agreements or understandings, written or oral, between the Sellers and PRG or any other party with respect to the Shares. ARTICLE III REPRESENTATIONS AND WARRANTIES OF BLUM Blum represents and warrants to the Sellers as follows: 3.1 Authorization; Binding Obligation. Blum has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and to perform its obligations hereunder. The execution and delivery of this Agreement by Blum and the consummation of the transactions contemplated hereby by Blum have been duly and validly authorized by Blum and no other proceedings on the part of Blum are necessary to authorize this Agreement or to consummate the transactions contemplated hereby. This Agreement has been validly executed and delivered by Blum and, assuming due authorization, execution and delivery by the Sellers, constitutes the legal, valid and binding obligation of Blum, enforceable against Blum in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other federal or state laws of general applicability relating to or affecting creditors' or secured parties' rights and remedies generally and general principles of equity, whether considered in an action at law or in equity. 4 3.2 Consents and Approvals; No Violation. None of the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, or compliance with any of the provisions hereof, will (i) require any consent, waiver, approval, authorization or permit of, or filing with or notification to, or any other action by, any Governmental Authority by Blum, (ii) violate the limited partnership agreement of Blum, or any Law of any Governmental Authority which may be applicable to Blum, or by which any of Blum's businesses, properties or assets may be bound or affected or (iii) violate, breach, or conflict with, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation or acceleration or any obligation to pay or result in the imposition of any Encumbrance upon any of the property of Blum) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, Encumbrance, contract, agreement, Permit, Order, or other instrument or obligation to which Blum is a party or by which any of Blum's businesses, properties or assets may be bound or affected. 3.3 Securities Act. Blum is acquiring the Shares solely for its own account for investment purposes and not with a view to, or for sale in connection with, any distribution or other disposition thereof, except as otherwise provided under the Registration Rights Agreement. Blum acknowledges that as of the Closing Date the Shares have not been registered under the Securities Act and are "restricted securities" under the Securities Act. 3.4 Brokers and Finders. No agent, broker, investment banker, financial advisor or other firm or person is or will be entitled to any broker's or finder's fee or any other commission or similar fee in connection with any of the transactions contemplated by this Agreement. 3.5 Investment Experience and Accreditation. Blum hereby represents that it is an "accredited investor," as defined in Rule 501(a) of Regulation D under the Securities Act, and is experienced in evaluating the transactions contemplated hereby. Blum has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its prospective investment in the Shares and has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment. 3.6 Disclosure of Information. Blum has received a copy of an Offering Memorandum dated November 30, 2001, PRG's definitive proxy statement dated December 19, 2001, PRG's Reports on Form 8-K filed with the Securities and Exchange Commission on January 2, 2002 and January 17, 2002, respectively, PRG's 5 press release dated January 24, 2002 announcing the closing of the Schultz acquisition and PRG's disclosure letter dated February 2, 2002 (collectively, the "Offering Documents") and has acknowledged that it has had access to such financial and other information, and has been afforded the opportunity to ask questions of PRG and receive answers thereto, as it deemed necessary in connection with its decision to purchase the Shares. 3.7 Restrictions. Blum agrees that if it should resell or otherwise transfer the Shares it will do so only: (a) to PRG or any affiliate thereof, (b) to an accredited investor that, prior to the transfer, furnishes to PRG a signed letter containing representations and agreements relating to the restrictions on transfer of the Shares reasonably acceptable to PRG and, if PRG requests, an opinion of counsel reasonably acceptable to PRG to the effect that the transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act; (c) pursuant to another available exemption from registration provided under the Securities Act, if available, provided that the representations and agreements and opinion described in (ii) above are delivered, if requested by PRG, or (d) pursuant to a registration statement which has been declared effective under the Securities Act and which continues to be effective at the time of such transfer. Blum agrees that it will give each person to whom it transfers such Shares notice of any restrictions on transfer of such Shares, if then applicable. Blum acknowledges that PRG will rely upon the truth and accuracy of the foregoing acknowledgements, representations, warranties and agreements and agrees that if any of the acknowledgements, representations, warranties and agreements deemed to have been made by it by its purchase of the Shares are no longer accurate, it shall promptly notify PRG. Blum acknowledges that none of PRG, Sellers or any person representing PRG or Sellers has made any representation to it with respect to PRG or the offering or sale of any Shares, other than the information contained in the Offering Documents, which Offering Documents have been delivered to it and upon which it is making its investment decision with respect to the Shares. 6 3.8 Restrictive Legend. Blum acknowledges that each certificate representing a Share will bear a legend substantially to the following effect, unless such Shares have been transferred pursuant to Rule 144 under the Securities Act or pursuant to a registration statement that has been declared effective under the Securities Act: "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF ANY OTHER JURISDICTION, IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS. THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD OR OTHERWISE TRANSFERRED, NOR WILL AN ASSIGNEE OR ENDORSEE HEREOF BE RECOGNIZED AS AN OWNER OF THE SHARES BY THE ISSUER, UNLESS: (I) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND OTHER APPLICABLE SECURITIES LAWS WITH RESPECT TO THE SHARES AND THE TRANSFER SHALL THEN BE IN EFFECT, OR (II) IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER, THE SHARES ARE TRANSFERRED IN A TRANSACTION WHICH IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF SUCH LAWS." ARTICLE IV MISCELLANEOUS 4.1 Survival of Representation and Warranties. All representations, warranties and covenants made by any party contained in this Agreement, or any certificate delivered pursuant hereto or made in writing to, by or on behalf of Blum or the Sellers, as the case may be, in connection with the transactions contemplated by this Agreement shall survive the Closing. 4.2 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 4.3 Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, telecopied (with confirmation of receipt), delivered by nationally-recognized overnight express service or sent by 7 registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses: (a) If to Blum to: Blum Strategic Partners II, L.P. 909 Montgomery Street, Suite 400 San Francisco, CA 94133 Telephone: (415)434-1111 Telecopy: (415)434-3130 Attention: Murray A. Indick (b) If to the Sellers to: Malouf, Lynch, Jackson & Swinson 600 Preston Commons East 8115 Preston Road Dallas, TX 75225 Telephone: (214) 273-0566 (direct dial) Telecopy: (214) 273-0567 (direct fax) Attention: Curtis R. Swinson, Esq. or to such other address as the person to whom notice is to be given may have previously furnished to the other in writing in the manner set forth above, provided that notice of a change of address shall be deemed given only upon receipt. 4.4 Expenses. Each party hereto shall be solely responsible for all expenses incurred by it or on its behalf in connection with the preparation and execution of this Agreement and the consummation of the transactions contemplated hereby, including, without limitation, the fees and expenses of its counsel, accountants, brokers, finders, financial advisors and other representatives. 4.5 Specific Performance. Without limiting the rights of each party hereto to pursue all other legal and equitable rights available to such party for the other parties' failure to perform their obligations under this Agreement, the parties hereto acknowledge and agree that the remedy at law for any failure to 8 perform their obligations hereunder would be inadequate and that each of them, respectively, shall be entitled to specific performance, injunctive relief or other equitable remedies in the event of any such failure. 4.6 Descriptive Headings; Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. References in this Agreement to Sections mean Sections of this Agreement, unless otherwise indicated. The term "person" shall mean and include an individual, a partnership, a joint venture, a corporation, a trust, a governmental entity or an unincorporated organization. The parties hereto agree that they have been represented by counsel during the negotiation and execution of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document. 4.7 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 4.8 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the parties shall negotiate in good faith with a view to the substitution therefor of a suitable and equitable solution in order to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid provision, provided, however, that the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be in any way impaired thereby, it being intended that all of the rights and privileges of the parties hereto shall be enforceable to the fullest extent permitted by law. 4.9 Entire Agreement; Third-Party Beneficiaries. This Agreement (a) constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and (b) except for PRG, is not intended to confer upon any person other than the parties hereto and their permitted assigns any rights or remedies hereunder. 4.10 Assignment. No party hereto may assign its rights or obligations under this Agreement, provided that Blum may assign its rights to purchase Shares 9 hereunder to any one or more of its affiliates, and may assign and transfer any Shares so purchased to any one or more of such affiliates. 4.11 Further Assurances. The Sellers and Blum each agree to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be necessary or desirable in order to implement the transactions contemplated by this Agreement. ARTICLE V DEFINITIONS 5.1 Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below (such meanings to be equally applicable to both the singular and plural forms of the terms defined): "Blum" shall have the meaning set forth in the preamble. "Closing" shall have the meaning set forth in Section 1.3 hereof. "Closing Date" shall have the meaning set forth in Section 1.3 hereof. "Code" shall mean the Internal Revenue Code of 1986, as amended. "Common Stock " shall have the meaning set forth in the preamble. "Encumbrance" shall mean any lien, encumbrance, proxy, voting trust arrangement, pledge, security interest, collateral security agreement, financing statement (and similar notices) filed with any Governmental Authority, claim (including any claim as defined in the Code), charge, equities, mortgage, pledge, objection, title defect, option, restrictive covenant or restriction on transfer of any nature whatsoever, and the interest of the lessor in any property subject to a capital lease, except for restrictions or transferability imposed by the Securities Act. "Governmental Authority" shall mean any government or political subdivision thereof, whether federal, state, local or foreign, or any agency, department, commission, board, bureau, court, tribunal, body, administrative or regulatory authority or instrumentality of any such government or political subdivision. 10 "Law" shall mean any law (including common law), rule, regulation, restriction (including zoning), code, statute, ordinance, order, writ, injunction, judgment, decree or other requirement of a Governmental Authority. "Order" shall mean any order, judgment, injunction, award, decree, writ, rule or similar action of any Governmental Authority. "Permit" shall mean any franchise, license, certificate, approval, identification number, registration, permit, authorization, order or approval of, and any required registration with, any Governmental Authority. "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. "Shares" shall have the meaning set forth in the preamble. [Remainder of Page Intentionally Left Blank] 11 IN WITNESS WHEREOF, the parties hereto have executed this Agreement, on the day and year first above written. BLUM STRATEGIC PARTNERS II, L.P. By: Blum Strategic GP II, L.L.C. By:_________________________________________ Name: Title: 12 HHS CHARITABLE LEAD TRUST By: ______________________________________ Name: Title: LVS CHARITABLE LEAD TRUST By:_______________________________________ Name: Title: DANIEL ALAN SCHULTZ HHS (2001) GST TRUST By:______________________________________ Name: Title: DANIEL ALAN SCHULTZ LVS (2001) GST TRUST By:______________________________________ Name: Title: JAYNIE SCHULTZ ROMANER HHS (2001) GST TRUST By:______________________________________ Name: Title: JAYNIE SCHULTZ ROMANER LVS (2001) GST TRUST By: ____________________________________ Name: Title: THE ANDREW H. SCHULTZ IRREVOCABLE TRUST By:______________________________________ Name: Title: EXHIBIT A NAME NUMBER OF SHARES - ---- ---------------- HHS Charitable Lead Trust 55,334 LVS Charitable Lead Trust 55,334 Daniel Alan Schultz HHS (2001) GST Trust 110,668 Daniel Alan Schultz LVS (2001) GST Trust 110,668 Jaynie Schultz Romaner HHS (2001) GST Trust 110,668 Jaynie Schultz Romaner LVS (2001) GST Trust 110,668 Andrew Schultz 498,008 The Andrew H. Schultz Irrevocable Trust 55,334 -------- TOTAL 1,106,682 EXHIBIT B February 21, 2002 Murray A. Indick Blum Capital Partners, L.P. 909 Montgomery Street, Suite 400 San Francisco, CA 94133 Re: Sale of 1,106,682 Shares of the Common Stock of The Profit Recovery Group International, Inc. by the Sellers to Blum Strategic Partners II, L.P. Dear Mr. Indick: We have been requested by you to express our opinion as to whether such shareholders have sold the above-referenced shares in compliance with the Securities Act of 1933, as amended. In this regard, we have reviewed a Stock Purchase Agreement executed by Blum Strategic Partners II, L.P., dated February 21, 2002. In rendering this opinion, we have assumed that the foregoing document is accurate and complete in all material respects, and we have further assumed the genuineness of all signatures, the authenticity of all documents of those submitted to us as originals, the conformity to original documents of those submitted as photostatic copies, and the authenticity of such latter documents. On the basis of the foregoing, we are of the opinion that the above-referenced shares may be transferred in compliance with the Securities Act of 1933, as amended, and the regulations promulgated thereunder. Sincerely, Curtis R. Swinson 1449539 -----END PRIVACY-ENHANCED MESSAGE-----