-----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, JqF4RUF2ywNjzK1B7vg3ZYyk4ceypXmd66gXX3Ij5x4MkAUoo/+EaYVCkCEY1zsz kM7gyFSkXtx/06sj9osrkg== 0001177254-10-000009.txt : 20100609 0001177254-10-000009.hdr.sgml : 20100609 20100608182509 ACCESSION NUMBER: 0001177254-10-000009 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20100609 DATE AS OF CHANGE: 20100608 GROUP MEMBERS: CHAI TRUST COMPANY, LLC GROUP MEMBERS: EGI-FUND (00) INVESTORS, L.L.C. GROUP MEMBERS: EGI-FUND (05-07) INVESTORS, L.L.C. GROUP MEMBERS: EGI-FUND (08-10) INVESTORS, L.L.C. GROUP MEMBERS: SAMSTOCK, L.L.C. GROUP MEMBERS: SZ INVESTMENTS, L.L.C. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: REWARDS NETWORK INC CENTRAL INDEX KEY: 0000078536 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 846028875 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-35435 FILM NUMBER: 10885489 BUSINESS ADDRESS: STREET 1: TWO NORTH RIVERSIDE PLAZA STREET 2: SUITE 950 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 312-521-6767 MAIL ADDRESS: STREET 1: TWO NORTH RIVERSIDE PLAZA STREET 2: SUITE 950 CITY: CHICAGO STATE: IL ZIP: 60606 FORMER COMPANY: FORMER CONFORMED NAME: IDINE REWARDS NETWORK INC DATE OF NAME CHANGE: 20020613 FORMER COMPANY: FORMER CONFORMED NAME: TRANSMEDIA NETWORK INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PIKES PEAK AMERICAN CORP DATE OF NAME CHANGE: 19840912 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SAMSTOCK LLC CENTRAL INDEX KEY: 0001051877 IRS NUMBER: 364156890 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: TWO NORTH RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124664010 MAIL ADDRESS: STREET 1: TWO NORTH RIVERSIDE PLAZA CITY: CHICAGO STATE: IL ZIP: 60606 SC 13D/A 1 rewardsnetwork13da.htm REWARDS NETWORK 13DA 6-8-2010 rewardsnetwork13da.htm
 
 
 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 18)*

Rewards Network Inc.
--------------------------------------------------------------------------------
(Name of Issuer)

Common Stock, $0.02 par value
--------------------------------------------------------------------------------
(Title of Class of Securities)

893767103
--------------------------------------------------------------------------------
(CUSIP Number)

Jonathan D. Wasserman, Esq.
Equity Group Investments, L.L.C.
2 North Riverside Plaza, Suite 600
Chicago, Illinois 60606
312-466-3505
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)

June 8, 2010
--------------------------------------------------------------------------------
(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. 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 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).

POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN THIS FORM ARE NOT REQUIRED TO RESPOND UNLESS THE FORM DISPLAYS A CURRENTLY VALID OMB CONTROL NUMBER.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 2 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

Samstock, L.L.C.
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Delaware
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power – 1,265,552
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 1,265,552
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

1,265,552
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

14.4% (1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 3 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

EGI-Fund (00) Investors, L.L.C.
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Delaware
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power – 135,160
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 135,160
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

135,160
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

1.5% (1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.


 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 4 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

EGI-Fund (05-07) Investors, L.L.C.
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Delaware
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power – 618,100
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 618,100
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

618,100
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

7.0% (1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 5 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

EGI-Fund (08-10) Investors, L.L.C.
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Delaware
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power – 304,532
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 304,532
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

304,532
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

3.5% (1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 6 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

SZ Investments, L.L.C.
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Delaware
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power –2,323,344
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 2,323,344
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

2,323,344
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

26.4%(1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.


 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 7 of 12
_____________________________________________________________________________
1.           Name of Reporting Persons.

Chai Trust Company, LLC
_____________________________________________________________________________
2.           Check the Appropriate Box If a Member of a Group (See Instructions)
           (a)  [X]
(b)  [_]
_____________________________________________________________________________
3.           SEC Use Only
_____________________________________________________________________________
4.           Source of Funds (See Instructions)
WC
_____________________________________________________________________________
5.           Check If Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e) [_]
_____________________________________________________________________________
6.           Citizenship or Place of Organization
Illinois
_____________________________________________________________________________
 
 
NUMBER OF                                           7.           Sole Voting Power – 0
SHARES
BENEFICIALLY                                8.           Shared Voting Power –2,323,344
OWNED BY
EACH                                9.           Sole Dispositive Power - 0
REPORTING
PERSON                                           10.           Shared Dispositive Power – 2,323,344
WITH
_____________________________________________________________________________
11.           Aggregate Amount Beneficially Owned by Each Reporting Person

2,323,344
_____________________________________________________________________________
12.           Check Box If the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) [_]
_____________________________________________________________________________
13.           Percent of Class Represented by Amount in Row (11)

26.4%(1)
_____________________________________________________________________________
14.           Type of Reporting Person (See Instructions)
OO
_____________________________________________________________________________

(1) Based on 8,815,819 shares of Common Stock outstanding as of May 4, 2010, as reported in the Form 10-Q of the Issuer for the period ended March 31, 2010.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 8 of 12

This Amendment No. 18 to Schedule 13D relates to the common stock, par value $0.02 per share ("Common Stock"), of Rewards Network, Inc., a Delaware corporation located at Two North Riverside Plaza, Suite 950, Chicago, Illinois 60606 (the "Issuer").

ITEM 2.                      Identity and Background.

Item 2 of the Schedule 13D is hereby amended and restated in its entirety as follows:

(a-c) This Statement is being filed by the following beneficial owners of Common Stock:  Samstock, L.L.C., a Delaware limited liability company ("Samstock"); EGI-Fund (00) Investors, L.L.C., a Delaware limited liability company ("Fund 00"); EGI-Fund (05-07) Investors, L.L.C., a Delaware limited liability company ("Fund 05-07"); EGI-Fund (08-10) Investors, L.L.C., a Delaware limited liability company ("Fund 08-10"); SZ Investments, L.L.C., a Delaware limited liability company ("SZI"); and Chai Trust Company, LLC, an Illinois limited liability company ("Chai Trust").  Samstock, Fund 00, Fund 05-07, Fund 08-10, SZI and Chai Trust are sometimes collectively referred to herein as the "Reporting Persons".

The officers of each of Samstock, Fund 00, Fund 05-07, Fund 08-10, SZI are as follows:

Samuel Zell
President; President and Chairman of Equity Group Investments, L.L.C. ("EGI")
William C. Pate
Vice President; Managing Director of EGI
Philip Tinkler
Treasurer; Managing Director of EGI

SZI is the managing member of each of Samstock, Fund 00, and Fund 05-07, and is the manager of Fund 08-10.  SZI is indirectly owned by various trusts established for the benefit of Samuel Zell and his family (the "Trusts").  The trustee of each of the Trusts is Chai Trust.  The officers and managing directors of Chai Trust are as follows:

Donald J. Liebentritt
President and a Managing Director of Chai Trust; Senior Advisor to EGI and General Counsel of Tribune Company
Kellie Zell Harper
Managing Director of Chai Trust.  Mrs. Zell also works as a homemaker.
Leah Zell Wanger
Managing Director of Chai Trust.  Ms. Wagner is a private investor whose business address is 227 West Monroe Street, Chicago, Illinois 60603
JoAnn Zell
Managing Director of Chai Trust. Ms. Zell is a physician
Matthew Zell
Managing Director of Chai Trust and a Managing Director of EGI
Robert M. Levin
Senior Trust Officer and a Managing Director of Chai Trust.  Mr. Levin is also a partner in the law firm Levin & Schreder Ltd., whose business address is 120 North LaSalle Street, Suite 3800, Chicago, Illinois 60602
James Bunegar
Vice President, Chief Operating Officer, Assistant Trust Officer and Treasurer of Chai Trust.  Mr. Bunegar is also a Managing Director of EGI
Philip Tinkler
Chief Financial Officer of Chai Trust and a Managing Director of EGI
Jon Wasserman
Managing Director of Chai Trust.  Mr. Wasserman is a Managing Director of EGI

The business address of each Reporting Person, Samuel Zell, Donald Liebentritt, William Pate, Philip Tinkler, Kellie Zell Harper, JoAnn Zell, Matthew Zell, James Bunegar and Jon Wasserman is Two North Riverside Plaza, Suite 600, Chicago, Illinois 60606.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 9 of 12

(d) and (e) No Reporting Person has, during the last five years, (i) been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was, or is, subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to federal or state securities laws or finding any violation with respect to such laws.

ITEM 3.                      Source and Amount of Funds or Other Consideration.

Item 3 is hereby amended by adding the following thereto:

In connection with the non-binding indication of interest described in Item 4, the Reporting Persons are engaged in preliminary discussions with potential financing sources to secure funding to supplement cash on hand in order to support the proposed transaction.  The Reporting Persons have not acquired any Common Stock pursuant to this potential course of action. Therefore, to date, the Reporting Persons have not used any funds to purchase additional shares of Common Stock of the Issuer.

ITEM 4.                      Purpose of Transaction.

Item 4 is hereby amended by adding the following thereto:

In response to a request from the Issuer for an indication of interest, on June 8, 2010, EGI sent a letter to the Strategic Coordination Committee of the Issuer’s  Board of Directors, a special committee comprised of directors of the Issuer who are independent of EGI and the Reporting Persons, presenting a non-binding indication of interest to acquire all of the outstanding Common Stock not currently owned by the Reporting Persons (the “Shares”) for $13.50 per Share in cash. A copy of EGI’s indication of interest letter is filed herewith as Exhibit 1.

The foregoing should not be construed as an offer to purchase Shares. Any offer to purchase Shares will be made pursuant to the rules and regulations of the SEC, including Rule 13e-3 under the Securities Exchange Act which is applicable to certain “going private” transactions, if and when there is a definitive acquisition agreement with the Issuer.

EGI expressly reserves the right to withdraw its indication of interest, in its sole discretion, prior to the execution of a definitive acquisition agreement and to modify its indication of interest in any way as a result of negotiations or for any reason at all.  There can be no assurance that discussions between EGI and the Issuer will result in a transaction. The Reporting Persons do not intend to make further disclosure until a definitive acquisition agreement is executed or EGI determines to withdraw its indication of interest.

Except as set forth herein, or as would occur upon completion of any of the matters discussed herein, no Reporting Person has any present plans or proposals that would relate to or result in any of the matters set forth in clauses (a) through (j) of Item 4 of Schedule 13D.  However, if the proposed transaction does not occur for any reason, each Reporting Person may, from time to time, acquire or cause affiliates to acquire additional Common Stock, dispose of some or all of its Common Stock or continue to hold Common Stock (or any combination or derivative thereof). In addition, without limitation, but subject to the Investment Agreement, the Reporting Persons may directly or indirectly engage in discussions with members of management, directors, and stockholders of the Issuer and other parties, concerning extraordinary corporate transactions (including but not limited to a merger, reorganization or liquidation) relating to the Issuer as well as concerning its business, operations, assets, strategy, future plans, prospects, corporate structure, board composition, management, capitalization, dividend policy, charter, bylaws, corporate documents and agreements.

 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 10 of 12


ITEM 7.                      Materials to be Filed as Exhibits.

Exhibit 1:                      Indication of Interest Letter, dated June 8, 2010


 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 11 of 12


SIGNATURE

After reasonable inquiry and to the best of the undersigned's knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

DATED: June 8, 2010

SZ INVESTMENTS, L.L.C.
SAMSTOCK, L.L.C.
EGI-FUND (00) INVESTORS, L.L.C.
EGI-FUND (05-07) INVESTORS, L.L.C.
EGI-FUND (08-10) INVESTORS, L.L.C.

Each by: /s/ PHILIP G. TINKLER
-------------------------------------
Name: Philip G. Tinkler
Title: Vice President

CHAI TRUST COMPANY, LLC

By: /s/ PHILIP G. TINKLER
-------------------------------------
Name: Philip G. Tinkler
Title: Chief Financial Officer

The original statement shall be signed by each person on whose behalf the statement is filed or his authorized representative.  If the statement is signed on behalf of a person by his authorized representative (other than an executive officer or general partner of the filing person), evidence of the representative's authority to sign on behalf of such person shall be filed with the statement:  provided, however, that a power of attorney for this purpose which is already on file with the Commission July be incorporated by reference. The name and any title of each person who signs the statement shall be typed or printed beneath his signature.


ATTENTION:  INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACT CONSTITUTE FEDERAL CRIMINAL VIOLATIONS (SEE 18 U.S.C. 1001)


 
 
 


CUSIP No. 893767103
SCHEDULE 13D/A
Page 12 of 12


EXHIBIT INDEX

1.
Indication of Interest Letter, dated June 8, 2010


 
 
 

EX-99.1 2 ex-99_1.htm LETTER ex-99_1.htm
 
 
 

Exhibit 1

June 8, 2010

Strategic Coordination Committee of the Board of Directors
Rewards Network Inc.
Two North Riverside Plaza
Suite 950
Chicago, IL 60606

Dear Members of the Strategic Coordination Committee:

In response to your request for an indication of interest, Equity Group Investments, L.L.C. (“EGI” or “we”) is pleased to present a non-binding indication of interest to acquire for cash all of the outstanding shares of common stock, par value $0.02 (the “Shares”), of Rewards Network Inc. (the “Company”) not owned by EGI and its affiliates at a purchase price of $13.50 per Share.
 
The indicated per Share purchase price represents a 36% premium to today’s closing price per Share on the NASDAQ Stock Market and a 12% dividend adjusted premium to the average closing price per Share during the last twelve months.
 
We are prepared to promptly negotiate the terms of a definitive merger agreement, including providing the Company a 40-day “go-shop” period following the execution of an agreement to supplement the Company’s efforts to date in its strategic review process.
 
We are engaged in discussions with potential financing sources and are increasingly optimistic that financing commitments will be available concurrently with the negotiation of a definitive merger agreement.  Our current intention is to seek at least $60,000,000 in debt financing to support this transaction.
 
This non-binding indication of interest is subject to EGI’s satisfactory completion of our remaining confirmatory due diligence, including additional diligence with respect to the Company’s data security and privacy policies, negotiation of a definitive merger agreement, approval of the Strategic Coordination Committee and the Board of Directors of the Company and receipt of necessary third-party consents and stockholder and regulatory approvals, including pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976.  Our intended financing sources also need to complete due diligence.
 
EGI reserves the right to withdraw this indication of interest prior to the execution of a definitive merger agreement and to modify this indication of interest in any way as a result of negotiations or for any reason at all.  This letter is intended solely as an expression of interest in an acquisition of the Company and does not constitute a legally binding commitment or offer.  A legally binding obligation on the part of EGI will result only upon its execution of a definitive agreement.
 
Concurrent with sending this indication of interest to you, EGI is filing an amendment to its Schedule 13D, as required by the Securities Exchange Act of 1934.
 
Please contact me, Tiara Nelson or Jon Wasserman with any questions or to discuss our indication of interest further.  We look forward to working with you.
 
Sincerely,
 
/s/ William Pate                                           
 
William Pate
 


 
 
 

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