-----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, QQzFf/jZFimq/Kr3FFlmg6zvBHNrFFqnzo47MbtaMA6eXtJM9dhMXfzrs7Z9SvU6 45Mz6AEPxm0KluRA0ChmdQ== 0000914062-02-000585.txt : 20020903 0000914062-02-000585.hdr.sgml : 20020903 20020903170204 ACCESSION NUMBER: 0000914062-02-000585 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20020903 GROUP MEMBERS: A. H. SCHULTZ JJS (2001) GST TRUST GROUP MEMBERS: A.H. SCHULTZ LVS (2001) GST TRUST GROUP MEMBERS: ANDREW H. SCHULTZ GROUP MEMBERS: ANDREW H. SCHULTZ IRREVOCABLE TRUST GROUP MEMBERS: ARTHUR N. BUDGE, JR. GROUP MEMBERS: DANIEL A. SCHULTZ GROUP MEMBERS: HOWARD SCHULTZ GROUP MEMBERS: JAYNIE SCHULTZ ROMANER GROUP MEMBERS: LESLIE SCHULTZ GROUP MEMBERS: NATE LEVINE GROUP MEMBERS: PRG SCHULTZ LIQUIDATING INVESTMENTS GP, L.L.C. GROUP MEMBERS: SCHULTZ PRG LIQUIDATING INVESTMENTS, LTD. GROUP MEMBERS: THE DANIEL ALAN SCHULTZ HHS (2001) GST TRUST GROUP MEMBERS: THE DANIEL ALAN SCHULTZ LVS (2001) GST TRUST GROUP MEMBERS: THE GABRIELLA SCHULTZ 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 GROUP MEMBERS: THE SAMUEL JOEL SCHULTZ TRUST GROUP MEMBERS: THE ZACHARY HERMAN SCHULTZ 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: 02755572 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 prgschultz13da.txt SCHEDULE 13D/A 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 ================================================================================ (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. 28 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 EX-99 3 prgschultz13da998.txt EX. 99.8 Exhibit 99.8 FIRST OPTION AGREEMENT THIS FIRST OPTION AGREEMENT (this "Agreement") is made and entered into effective this 27th day of August, 2002 (the "Effective Date"), by and among Schultz PRG Liquidating Investments, Ltd., a Texas limited partnership ("Grantor") and PRG-Schultz International, Inc., a Georgia corporation ("Grantee"). Background A. Grantor and its affiliates own shares of common stock, no par value per share, of Grantee ("PRGX Shares"). B. Effective on the date hereof, Grantor and its affiliate sold 4,338,507 PRGX Shares to affiliates of Berkshire Partners LLC (collectively, "Berkshire Buyer"). C. Grantee has assisted the Grantor to facilitate the sale of PRGX Shares by Grantor to the Berkshire Buyer, which Grantor acknowledges that Grantee was not required to do. Grantee has granted registration rights, pursuant to a registration rights agreement, to Berkshire Buyer without which the Berkshire Buyer would not have acquired the 4,338,507 PRGX Shares referred to above. Agreement NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Option. 1.1 Grant of Option. Grantor hereby grants to Grantee an irrevocable option (the "Option") to purchase all right, title and interest in up to 1,446,168 PRGX Shares (the "Option Shares") in exchange for the payment of a purchase price equal to $8.72 per share for each share which is the subject of the Option exercise, together with interest (as additional purchase price) on such amount from the date hereof until the date of payment at a rate equal to eight percent (8%) per annum, computed on the basis of the actual number of days elapsed (the "Purchase Price"), free and clear of all liens and encumbrances. The Grantee acknowledges that the Option Shares are currently pledged to the Berkshire Buyer in connection with a Secured Promissory Note (the "Note") and Pledge Agreement between Grantor and the Berkshire Buyer (the "Berkshire Loan"), which pledge is subordinate to the rights of the Grantee under this Option. 1.2 Exercise of Option. Subject to Section 1.3, Grantee may, at any time and from time to time during the term of this Agreement, exercise the Option in one or more increments of at least a number of shares such that the Grantor's ownership of common stock of PRGX is reduced so as to satisfy the requirements of Section 302(b)(2) of the Internal Revenue Code of 1986, as amended, taking into account any attribution rules applicable in determining Grantor's ownership of such stock, by delivering written notice of exercise to Grantor (the "Exercise Notice") on or before a date 165 days after the date hereof, setting forth the number of Option Shares that Grantee is acquiring and designating a time and place at which the closing of such purchase shall occur (the "Option Closing"), provided that the Option Closing shall occur not later than five (5) days after the date of the Option Notice. 1.3 Manner of Purchase. (a) At the Option Closing, Grantee shall pay to Grantor the Purchase Price for the Option Shares to be purchased by cash, wire transfer or other immediately available funds. If Grantee has received Notice of an Event of Default (as defined in the Note) that is continuing, Grantee shall be entitled to hold the Purchase Price in trust for the benefit of Berkshire and/or Grantor until (a) Grantee has received joint instructions from Berkshire and Grantor as to the payment of the Purchase Price, (b) there is a final order of a court of competent jurisdiction directing the parties as to payment of the Purchase Price, or (c) Grantee deposits the Purchase Price for the Option Shares with said court, pending a final decision of such controversy. In any such event, the Option shall be deemed fully and properly exercised and all rights to the Option Shares shall be vested in Grantee. (b) Upon the receipt of the Purchase Price, Grantor shall execute and deliver to Grantee such instruments as are necessary and proper or may be required by Grantee's transfer agent to transfer full and complete title to the Option Shares to be transferred to the Grantee, free and clear of all liens and encumbrances. Grantor hereby agrees that upon receipt of the Purchase Price, it shall promptly take all actions necessary or appropriate as may be reasonably requested by Grantee or its transfer agent to effect the transfer of record and beneficial ownership to such Option Shares so purchased on the books and records of Grantee. 2. Restrictions on Transfer and Acquisition. 2.1 Option Shares. Grantor hereby covenants that, until the expiration of the Option, it will make no transfer of any interest in the Option Shares, other than the grant of the security interest under the Pledge Agreement in connection with the Berkshire Loan. Grantor represents that there are no contractual or other restrictions on the Grantor's ability to transfer the Option Shares (other than those imposed by the Shareholder Agreement, as amended, and applicable state and federal securities laws). 2.2 Additional Shares. Subject to Section 4.1 hereof, Grantor covenants that it will not acquire any additional shares of PRGX Common Stock prior to a date 271 days after the date hereof. 2.3 No Assignment. The Option granted hereunder may not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise), nor shall any such rights be subject to execution, attachment or similar process. 3. Term and Termination. This Agreement shall terminate and be of no force and effect, unless extended in writing by all of the parties hereto, on the date which is 180 days after the date hereof; provided that the provisions of the second sentence of Section 1.3(a) and Section 4 shall survive. 4. General Provisions. 4.1 Adjustment to Option Shares. If the outstanding shares of common stock of PRGX are changed into or exchanged for a different number or kind of shares or other securities of PRGX by reason of any recapitalization, reclassification, stock split, stock dividend, combination, subdivision or similar transaction, then, subject to any required action by the stockholders of the PRGX, the number and kind of Option Shares subject to this Option and the price per share of the Shares subject to the Option shall be proportionately adjusted. 2 4.2 GOVERNING LAWS. THIS AGREEMENT SHALL BE CONSTRUED, ADMINISTERED AND ENFORCED ACCORDING TO THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 4.3 Assignment; Successors. This Agreement and the rights and obligations of the Grantor hereunder may not be transferred or assigned by the Grantor to any other person or entity without the prior written consent of the Grantee. This Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors and assigns. 4.4 Notice. All notices, requests, demands, claims or other communications hereunder will be in writing and shall be deemed duly given if personally delivered, sent by telefax, sent by a recognized overnight delivery service which guarantees next-day delivery ("Overnight Delivery") or mailed by certified mail, return receipt requested, postage prepaid and addressed to the intended recipient, as set forth below: If to Grantor: Schultz PRG Liquidating Investments, Ltd. 9241 LBJ Freeway Dallas, Texas 75243 Attention: Howard Schultz Telefax: (972) 690-7564 with a copy to: Malouf, Lynch, Jackson & Swinson 600 Preston Commons East 8115 Preston Road Dallas, Texas 75225 Attention: Curtis Swinson, Esq. Telefax: (214) 273-0567 If to Grantee: PRG-Schultz International, Inc. 2300 Windy Ridge Parkway Suite 100 North Atlanta, GA 30339-8426 Attention: Clinton McKellar, Jr. Senior Vice President & General Counsel Telefax: (770) 779-3034 with a copy to: Arnall Golden Gregory LLP 1201 West Peachtree Street, Suite 2800 Atlanta, Georgia 30309-3400 Attention: Jonathan Golden, Esq. Telefax: (404) 873-8701 or at such other address as any party hereto notifies the other parties hereof in writing. The parties hereto agree that notices or other communications that are sent in accordance herewith (i) by personal delivery or telefax, will be deemed received on the day sent or on the first business day thereafter if not sent on a business day (with written confirmation of receipt), (ii) by Overnight Delivery, will be deemed received on the first business day immediately following the date sent, and (iii) by certified U.S. Mail, return receipt 3 requested, will be deemed received three (3) business days immediately following the date sent. For purposes of this Agreement, a "business day" is a day on which U.S. national banks are open for business and shall not include a Saturday or Sunday or legal holiday. Notwithstanding anything to the contrary in this Agreement, no action shall be required of the parties hereto except on a business day and in the event an action is required on a day which is not a business day, such action shall be required to be performed on the next succeeding day which is a business day. 4.5 Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 4.6 Entire Agreement; Amendment. This Agreement expresses the entire understanding and agreement of the parties with respect to the subject matter hereof. This Agreement may not be amended or modified except as set forth in writing and signed by all of the parties hereto. 4.7 Headings. Paragraph headings used herein are for convenience of reference only and shall not be considered in construing this Agreement. 4.8 Specific Enforcement. Each of the parties hereto expressly agrees that the other parties will be irreparably damaged if this Agreement is not specifically performed. Upon a breach of the terms, covenants and/or conditions of this Agreement by any party, the other parties shall, in addition to any and all other rights and remedies at law or in equity, be entitled to a temporary or permanent injunction, without showing any actual damage, and/or a decree for specific performance, in accordance with the provisions hereof. All such rights and remedies shall be cumulative. 4.9 Counterparts. This Agreement may be executed in two or more counterparts, and delivered by facsimile transmission or otherwise, each of which shall be deemed an original and all of which shall constitute one and the same instrument. [Remainder of page intentionally left blank. Signatures on following 4 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the day and year first set forth above. GRANTOR: SCHULTZ PRG LIQUIDATING INVESTMENTS, LTD. By: SCHULTZ PRG LIQUIDATING INVESTMENTS GP, LLC Its: General Partner By: /s/ Howard Schutlz -------------------------------- Name: Howard Schultz Its: Manager GRANTEE: PRG-SCHULTZ INTERNATIONAL, INC. By: /s/ Clinton McKellar, Jr. ------------------------------------------ Its: General Counsel and Secretary 5 EX-99 4 prgschultz13da999.txt EX. 99.9 EXHIBIT 99.9 SECOND OPTION AGREEMENT THIS SECOND OPTION AGREEMENT (this "Agreement") is made and entered into effective this 27th day of August, 2002 (the "Effective Date"), by and among Schultz PRG Liquidating Investments, Ltd., a Texas limited partnership ("Grantor") and PRG-Schultz International, Inc., a Georgia corporation ("Grantee"). Background A. Grantor and its affiliates own shares of common stock, no par value per share, of Grantee ("PRGX Shares"). B. Effective on the date hereof, Grantor and its affiliate sold 4,338,507 PRGX Shares to affiliates of Blum Strategic Partners II, LP (collectively, "Blum Buyer"). C. On the date hereof, Grantor has granted to Grantee another option to purchase 1,446,168 PRGX Shares pledged to affiliates of Berkshire Partners LLC (the "First Option") pursuant to an option agreement of even date herewith. D. Grantee has assisted the Grantor to facilitate the sale of PRGX Shares by Grantor to the Blum Buyer, which Grantor acknowledges that Grantee was not required to do. Grantee has agreed to amend its Shareholder Protection Rights Plan dated as of August 9, 2000 in order to permit such sale of PRGX Shares and has granted certain registration rights, pursuant to a registration rights agreement, to Blum Buyer, without which rights Blum Buyer would not have acquired the 4,338,507 PRGX Shares referred to above. Agreement NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Option. 1.1 Grant of Option. Grantor hereby grants to Grantee an irrevocable option (the "Option") to purchase all right, title and interest in up to 1,446,168 PRGX Shares (the "Option Shares") in exchange for the payment of a purchase price equal to $8.72 per share for each share which is the subject of the Option exercise, together with interest (as additional purchase price) on such amount from the date hereof until the date of payment at a rate equal to eight percent (8%) per annum, computed on the basis of the actual number of days elapsed (the "Purchase Price"), free and clear of all liens and encumbrances. The Grantee acknowledges that the Option Shares are currently pledged to the Blum Buyer in connection with a Secured Promissory Note ("Note") and Pledge Agreement between Grantor and the Blum Buyer (the "Blum Loan"), which pledge is subordinate to the rights of the Grantee under this Option.. 1.2 Exercise of Option. Subject to Section 1.3, Grantee may, at any time and from time to time during the term of this Agreement, exercise the Option in one or more increments of at least a number of shares such that the Grantor's ownership of common stock of PRGX is reduced so as to satisfy the requirements of Section 302(b)(2) of the Internal Revenue Code of 1986, as amended, taking into account any attribution rules applicable in determining 1504957v1 Grantor's ownership of such stock, by delivering written notice of exercise to Grantor (the "Exercise Notice") on or before a date 255 days after the date hereof, setting forth the number of Option Shares that Grantee is acquiring and designating a time and place at which the closing of such purchase shall occur (the "Option Closing"), provided that the Option Closing shall occur not later than five (5) days after the date of the Option Notice. 1.3 Manner of Purchase. (a) At the Option Closing, Grantee shall pay to Grantor the Purchase Price for the Option Shares to be purchased by cash, wire transfer or other immediately available funds. If Grantee has received Notice of an Event of Default (as defined in the Note) that is continuing, Grantee shall be entitled to hold the Purchase Price in trust for the benefit of Blum and/or Grantor until (a) Grantee has received joint instructions from Blum and Grantor as to the payment of the Purchase Price, (b) there is a final order of a court of competent jurisdiction directing the parties as to payment of the Purchase Price, or (c) Grantee deposits the Purchase Price for the Option Shares with said court, pending a final decision of such controversy. In any such event, the Option shall be deemed fully and properly exercised and all rights to the Option Shares shall be vested in Grantee. (b) Upon the receipt of the Purchase Price, Grantor shall execute and deliver to Grantee such instruments as are necessary and proper or may be required by Grantee's transfer agent to transfer full and complete title to the Option Shares to be transferred to the Grantee, free and clear of all liens and encumbrances. Grantor hereby agrees that upon receipt of the Purchase Price, it shall promptly take all actions necessary or appropriate as may be reasonably requested by Grantee or its transfer agent to effect the transfer of record and beneficial ownership to such Option Shares so purchased on the books and records of Grantee. 2. Limitation. Grantee hereby covenants that it will not purchase a greater number of Option Shares hereunder upon exercise of the Option granted herein than the number of PRGX Shares purchased upon exercise of the First Option. 3. Restrictions on Transfer and Acquisition. 3.1 Option Shares. Grantor hereby covenants that, until the expiration of the Option, it will make no transfer of any interest in the Option Shares, other than the grant of the security interest under the Pledge Agreement in connection with the Blum Loan. Grantor represents that there are no contractual or other restrictions on the Grantor's ability to transfer the Option Shares (other than those imposed by the Shareholder Agreement, as amended, and applicable state and federal securities laws). 3.2 Additional Shares. Subject to Section 4.1 hereof, Grantor covenants that it will not acquire any additional shares of PRGX Common Stock prior to a date 271 days after the date hereof. 3.3 No Assignment. The Option granted hereunder may not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise), nor shall any such rights be subject to execution, attachment or similar process. 4. Term and Termination. This Agreement shall terminate and be of no force and effect, unless extended in writing by all of the parties hereto, on the date which is 270 days after the date hereof; provided that the provisions 2 of the second sentence of Section 1.3(a) and Section 5 shall survive. 5. General Provisions. 5.1 Adjustment to Option Shares. If the outstanding shares of common stock of PRGX are changed into or exchanged for a different number or kind of shares or other securities of PRGX by reason of any recapitalization, reclassification, stock split, stock dividend, combination, subdivision or similar transaction, then, subject to any required action by the stockholders of the PRGX, the number and kind of Option Shares subject to this Option and the price per share of the Shares subject to the Option shall be proportionately adjusted. 5.2 GOVERNING LAWS. THIS AGREEMENT SHALL BE CONSTRUED, ADMINISTERED AND ENFORCED ACCORDING TO THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. 5.3 Assignment; Successors. This Agreement and the rights and obligations of the Grantor hereunder may not be transferred or assigned by the Grantor to any other person or entity without the prior written consent of the Grantee. This Agreement shall be binding upon and inure to the benefit of the parties and their heirs, executors, administrators, successors and assigns. 5.4 Notice. All notices, requests, demands, claims or other communications hereunder will be in writing and shall be deemed duly given if personally delivered, sent by telefax, sent by a recognized overnight delivery service which guarantees next-day delivery ("Overnight Delivery") or mailed by certified mail, return receipt requested, postage prepaid and addressed to the intended recipient, as set forth below: If to Grantor: Schultz PRG Liquidating Investments, Ltd. 9241 LBJ Freeway Dallas, Texas 75243 Attention: Howard Schultz Telefax: (972) 690-7564 with a copy to: Malouf, Lynch, Jackson & Swinson 600 Preston Commons East 8115 Preston Road Dallas, Texas 75225 Attention: Curtis Swinson, Esq. Telefax: (214) 273-0567 If to Grantee: PRG-Schultz International, Inc. 2300 Windy Ridge Parkway Suite 100 North Atlanta, GA 30339-8426 Attention: Clinton McKellar, Jr. Senior Vice President & General Counsel Telefax: (770) 779-3034 3 with a copy to: Arnall Golden Gregory LLP 1201 West Peachtree Street, Suite 2800 Atlanta, Georgia 30309-3400 Attention: Jonathan Golden, Esq. Telefax: (404) 873-8701 or at such other address as any party hereto notifies the other parties hereof in writing. The parties hereto agree that notices or other communications that are sent in accordance herewith (i) by personal delivery or telefax, will be deemed received on the day sent or on the first business day thereafter if not sent on a business day (with written confirmation of receipt), (ii) by Overnight Delivery, will be deemed received on the first business day immediately following the date sent, and (iii) by certified U.S. Mail, return receipt requested, will be deemed received three (3) business days immediately following the date sent. For purposes of this Agreement, a "business day" is a day on which U.S. national banks are open for business and shall not include a Saturday or Sunday or legal holiday. Notwithstanding anything to the contrary in this Agreement, no action shall be required of the parties hereto except on a business day and in the event an action is required on a day which is not a business day, such action shall be required to be performed on the next succeeding day which is a business day. 5.5 Severability. In the event that any one or more of the provisions or portion thereof contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, the same shall not invalidate or otherwise affect any other provisions of this Agreement, and this Agreement shall be construed as if the invalid, illegal or unenforceable provision or portion thereof had never been contained herein. 5.6 Entire Agreement; Amendment. This Agreement expresses the entire understanding and agreement of the parties with respect to the subject matter hereof. This Agreement may not be amended or modified except as set forth in writing and signed by all of the parties hereto. 5.7 Headings. Paragraph headings used herein are for convenience of reference only and shall not be considered in construing this Agreement. 5.8 Specific Enforcement. Each of the parties hereto expressly agrees that the other parties will be irreparably damaged if this Agreement is not specifically performed. Upon a breach of the terms, covenants and/or conditions of this Agreement by any party, the other parties shall, in addition to any and all other rights and remedies at law or in equity, be entitled to a temporary or permanent injunction, without showing any actual damage, and/or a decree for specific performance, in accordance with the provisions hereof. All such rights and remedies shall be cumulative. 5.9 Counterparts. This Agreement may be executed in two or more counterparts, and delivered by facsimile transmission or otherwise, each of which shall be deemed an original and all of which shall constitute one and the same instrument. [Remainder of page intentionally left blank. Signatures on following page.] 4 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the day and year first set forth above. GRANTOR: SCHULTZ PRG LIQUIDATING INVESTMENTS, LTD. By: SCHULTZ PRG LIQUIDATING INVESTMENTS GP, LLC Its: General Partner By: /s/ Howard Schultz ----------------------------------- Name: Howard Schultz Its: Manager GRANTEE: PRG-SCHULTZ INTERNATIONAL, INC. By: /s/ Clinton McKellar, Jr. ----------------------------------------- Its: General Counsel and Secretary 5 EX-99 5 prgschultz13da9913.txt EX. 99.13 EXHIBIT 99.13 CONSENT AND AMENDMENT AGREEMENT THIS CONSENT AND AMENDMENT AGREEMENT ("Agreement") is executed this 16th day of August, 2002 by and among PRG-Schultz International, Inc., a Georgia corporation f/k/a The Profit Recovery Group International, Inc. ("PRGX"), John M. Cook, a Georgia resident ("Cook"), John M. Toma, a Georgia resident ("Toma"), HSAT, Inc., a Texas corporation f/k/a Howard Schultz & Associates International, Inc. ("HSAT"), Howard Schultz, a Texas resident ("H. Schultz"), Andrew H. Schultz, a Texas resident ("A. Schultz") and H. Schultz, as Shareholders' Representative of all the shareholders of HSAT pursuant to the Asset Agreement, defined below, and of each former shareholder of each of the Affiliated Companies pursuant to the Stock Agreement defined below, who held such shares immediately prior to the transactions contemplated therein (collectively, HSAT, each of the shareholders of HSAT and each of the shareholders of the Affiliated Companies (as such shareholders are represented by the Shareholders' Representative) being the "Schultz Parties"). W I T N E S S E T H: WHEREAS, on January 24, 2002, PRGX acquired substantially all of the assets of HSAT pursuant to an Amended and Restated Agreement and Plan of Reorganization, dated as of December 11, 2001, as amended, by and among certain of the parties hereto and the other parties named therein (the "Asset Agreement"), and acquired substantially all of the outstanding stock of certain companies affiliated with the Schultz Parties (collectively, the "Affiliated Companies"), pursuant to that certain Amended and Restated Agreement and Plan of Reorganization Pursuant to Section 368(a)(1)(B) of the Internal Revenue Code, as Amended, dated as of December 11, 2001, as amended, by and among certain of the parties hereto and others named therein (the "Stock Agreement"), with the consideration under both the Asset Agreement and the Stock Agreement being shares of Common Stock of PRGX ("PRGX Shares"); WHEREAS, in connection with the closing of the Asset Agreement and the Stock Agreement, PRGX and/or Cook and Toma entered into other agreements, including a shareholder agreement with HSAT and certain shareholders of HSAT (the "Shareholder Agreement") and a registration rights agreement with HSAT and all of its shareholders and all of the former shareholders of the Affiliated Companies (the "Registration Rights Agreement"), both relating to the PRGX Shares acquired pursuant to the Asset Agreement and Stock Agreement (collectively, the "Other Agreements"); WHEREAS, pursuant to certain stock purchase agreements dated August 16, 2002 (each being a "Sale Agreement"), certain of the Schultz Parties and Schultz PRG Liquidating Investments Ltd., a Texas limited partnership ("LP") have agreed to sell 8,677,014 PRGX Shares ("Shares to be Sold") to affiliates of Blum Capital Partners L.P. and to affiliates of Berkshire Partners LLC (collectively the "Buyers" and such transactions being referred to herein as the "Sales"); WHEREAS, pursuant to a First Option Agreement and a Second Option Agreement, both of even date herewith, LP has granted to PRGX options ("Options") to purchase an aggregate of 2,892,336 PRGX Shares ("Option Shares"); WHEREAS, each of the Buyers has loaned $12,610,584.96 to the LP, and as security for its payment obligations, the LP has granted a security interest in and pledged 1,446,168 shares of PRGX Common Stock to each of the Buyers pursuant 1504950v1 to Pledge Agreements between the LP and each Buyer of even date herewith ("Pledge Agreements"); WHEREAS, H. Schultz and A. Schultz shall beneficially retain after the closings of the Sales, an aggregate of 1,500,000 PRGX Shares, which are not subject to the Options (the "Retained Shares"); WHEREAS, the Schultz Parties have requested that Cook and Toma consent to the Sales as required under the Shareholder Agreement, that PRGX amend its Shareholder Protection Rights Plan dated as of August 9, 2000 to permit the Sale to the affiliates of Blum Capital Partners, that PRGX grant certain registration rights to the Buyers with respect to the PRGX Shares they acquire (without which registration rights the Buyers would not acquire such shares), and that PRGX, Cook and Toma provide assistance to the Schultz Parties in effecting the Sales to the Buyers, which amendments, agreements and assistance the Schultz Parties acknowledge PRGX, Cook and Toma are not required to provide; NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows: 1. SHAREHOLDER AGREEMENT. (a) CONSENT. Pursuant to Section 3.1 of the Shareholder Agreement, the Shareholders' Representative, on behalf of all of the Holders (as defined in the Shareholder Agreement and being those shareholders of HSAT party thereto) thereunder, and each of Cook and Toma hereby consent to the following transactions: (i) the Sales of the Shares to be Sold to each of the Buyers; (ii) the transfer of 4,450,452 shares of PRGX Common Stock by H.Schultz to the LP; subject to the LP's execution of this Agreement, whereby the LP agrees to be bound by the terms of the Shareholder Agreement, as amended hereby; (iii) the grant of the Options by the LP to PRGX; (iv) the pledge by the LP of an aggregate of 2,892,336 PRGX Shares to each of the Buyers pursuant to the Pledge Agreements and any transfers of the PRGX Shares pursuant to the exercise of any rights under the notes subject to the Pledge Agreement; and (v) the exercise of the Options by PRGX. (b) RESTRICTIONS. At the closing of each of the Sales, all of the Shares to be Sold shall be free of any and all transfer, voting and other restrictions contained in Article III of the Shareholder Agreement, and all of the Option Shares and Retained Shares and the Holders thereof (as defined in the Shareholder Agreement) shall, notwithstanding any provision to the contrary in the Shareholder Agreement, remain subject to all of the transfer, voting and other restrictions contained in Article III of the Shareholder Agreement until January 24, 2004. In addition, each of the Schultz Parties hereby agrees that effective upon the closings of the Sales, the exceptions to the restrictions on Transfer contained in subsections (iv), (v) and (vii) of Section 3.1 of the 2 Shareholder Agreement shall be null and void and no longer available to the Schultz Parties during the term of the Shareholder Agreement. (c) COOK AND TOMA. In consideration of the consents given by Cook and Toma to the Sales pursuant hereto, effective upon ------------- the closing of the Sales: (i) Toma will no longer be bound by any of the restrictions contained in Article III of the Shareholder Agreement; and (ii) Cook hereby agrees that the exceptions to the restrictions on Transfer contained in subsections (iv), (v) and (vii) of Section 3.1 of the Shareholder Agreement shall be null and void and no longer available to Cook during the term of the Shareholder Agreement and the following additional exception to the restrictions shall apply solely to Cook: "(iv) transfers of less than 2,043,571 shares of PRGX Common Stock in the aggregate"; and the current subsection (vi) is renumbered subsection (v). (d) TERM. Section 4.1 of the Shareholder Agreement is hereby deleted and replaced with the following: This Agreement ---- will terminate on January 24, 2004. (e) NO ADDITIONAL SHARES. H. Schultz and A. Schultz agree that they shall not directly or indirectly acquire record --------------------- or beneficial ownership any shares of PRGX Common Stock prior to a date 271 days after the date hereof, except in connection with a recapitalization, reclassification, stock split, stock dividend, combination, subdivision or similar transaction in respect of shares of PRGX Common Stock. 2. REGISTRATION RIGHTS AGREEMENT. Effective upon the closing of the Sales, PRGX, HSAT and the Shareholders' Representative hereby terminate the Registration Rights Agreement. HSAT and the Shareholders' Representative, on behalf of all of the shareholders of HSAT and of all of the former shareholders of the Affiliated Companies, acknowledge and agree that, as of the date of such termination, HSAT, the shareholders of HSAT and the former shareholders of each of Affiliated Companies shall have no further rights thereunder. 3. WAIVER. Any and all notices required under any of the Other Agreements amended hereunder for the amendments ------ contemplated herein are hereby waived. 4. AUTHORITY. H. Schultz, as Shareholders' Representative, is authorized to act hereunder on behalf of all of the --------- shareholders of HSAT and of all of the former shareholders of the Affiliated Companies who are not otherwise parties to this Agreement. 5. EFFECT. Except to the extent expressly modified above, the Shareholder Agreements shall remain in full force and ------ effect as originally executed. 6. MISCELLANEOUS. (a) GOVERNING LAW. THIS AGREEMENT AND ALL RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 3 (b) MODIFICATIONS. No modification of or amendment to this Agreement, nor any waiver or any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party. (c) NOTICES. Any notice required or permitted by this Agreement shall be in writing and delivered in accordance with the provisions of Section 10.5 of the Asset Agreement. (d) COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original ------------ and all of which together shall constitute one instrument. (E) SUCCESSORS AND ASSIGNS. The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by PRGX's and HSAT's respective successors and assigns. The rights and obligations of the other parties to this Agreement under this Agreement may only be assigned with the prior written consent of PRGX. [Remainder of page intentionally left blank. Signatures on following page.] 4 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. PRG-SCHULTZ INTERNATIONAL, INC. By: /s/ Clinton McKellar, Jr. -------------------------------------------------- Name: Clinton McKellar, Jr. Its: General Counsel and Secretary /s/ John M. Cook -------------------------------------------------- John M. Cook /s/ John M. Toma -------------------------------------------------- John M. Toma HSAT, INC. By: /s/ Andrew H. Schultz -------------------------------------------------- Name: Andrew H. Schultz Its: Executive Vice President /s/ Howard Schultz -------------------------------------------------- Howard Schultz /s/ Andrew H. Schultz -------------------------------------------------- Andrew H. Schultz /s/Howard Schultz -------------------------------------------------- Howard Schultz, Shareholders' Representative, on behalf of all shareholders of HSAT, Inc. and on behalf of all former shareholders of the Affiliated Companies 5 SCHULTZ PRG LIQUIDATING INVESTMENTS, LTD. By: SCHULTZ PRG LIQUIDATING INVESTMENTS GP, LLC Its: General Partner By: /s/ Howard Schultz ---------------------------------------- Name: Howard Schultz Its: Manager 6 -----END PRIVACY-ENHANCED MESSAGE-----