Exhibit 99.1
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AGREEMENT AND PLAN OF MERGER
by and among:
CRANE MERGERCO HOLDINGS, INC.,
a Delaware corporation;
CRANE MERGERCO INC.,
a Delaware corporation; and
AMERICAN COIN MERCHANDISING, INC.,
a Delaware corporation
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Dated as of September 9, 2001
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TABLE OF CONTENTS
PAGE
SECTION 1 . THE MERGER; EFFECTIVE TIME.................................2
1.1 Merger of Acquisition Sub into the Company.......................2
1.2 Effect of the Merger.............................................2
1.3 Closing; Effective Time..........................................2
1.4 Certificate of Incorporation and Bylaws; Directors...............2
1.5 Conversion of Shares.............................................3
1.6 Closing of the Company's Transfer Books..........................3
1.7 Payment for Shares...............................................3
1.8 Appraisal Rights.................................................5
1.9 Company Stock Options............................................5
SECTION 2 . REPRESENTATIONS AND WARRANTIES OF THE COMPANY..............5
2.1 Due Organization and Good Standing; Subsidiaries.................6
2.2 Certificate of Incorporation; Bylaws; Corporate Records..........6
2.3 Capitalization, Etc..............................................6
2.4 SEC Filings; Financial Statements................................7
2.5 Absence of Certain Changes.......................................8
2.6 Proprietary Assets..............................................10
2.7 Title to Assets; Real Property..................................12
2.8 Contracts.......................................................12
2.9 Compliance with Legal Requirements..............................13
2.10 Legal Proceedings; Orders.......................................13
2.11 Governmental Authorizations.....................................13
2.12 Tax Matters.....................................................14
2.13 Employee Benefit Plans..........................................15
2.14 Labor Matters...................................................17
2.15 Environmental Matters...........................................17
2.16 Insurance.......................................................18
2.17 Certain Business Practices......................................18
2.18 Product Warranties..............................................18
2.19 Authority; Binding Nature of Agreement..........................18
TABLE OF CONTENTS
(CONTINUED)
PAGE
2.20 Non-Contravention; Consents.....................................19
2.21 Section 203 of the DGCL Not Applicable..........................19
2.22 Opinion of Financial Advisor....................................19
2.23 Brokers.........................................................20
2.24 Rights Agreement................................................20
2.25 Liabilities.....................................................20
2.26 Transactions with Affiliates....................................20
2.27 Vote Required...................................................20
SECTION 3 . REPRESENTATIONS AND WARRANTIES OF PARENT AND
ACQUISITION SUB..............................................20
3.1 Due Organization................................................20
3.2 Legal Proceedings...............................................21
3.3 Authority; Binding Nature of Agreement..........................21
3.4 Non-Contravention; Consents.....................................22
3.5 Not an Interested Stockholder...................................22
3.6 Financing.......................................................22
3.7 Ownership of Shares.............................................22
3.8 Brokers.........................................................22
SECTION 4 . Covenants.................................................23
4.1 Interim Operations of the Company...............................23
4.2 No Solicitation.................................................25
4.3 Meeting of the Company's Stockholders...........................26
4.4 Filings; Other Action...........................................27
4.5 Proxy Statement.................................................28
4.6 Access..........................................................28
4.7 Notification of Certain Matters.................................29
4.8 Publicity.......................................................29
4.9 Stock Options; Employee Stock Purchase Plan.....................29
4.10 Other Employee Benefits.........................................30
4.11 Indemnification; Directors' and Officers' Insurance.............30
ii.
TABLE OF CONTENTS
(CONTINUED)
PAGE
4.12 Assumption of Trust Preferred Liabilities.......................31
4.13 Section 16 Matters..............................................31
4.14 Resignation of Directors........................................32
4.15 Change in Financing.............................................32
4.16 Delivery of Fairness Opinion....................................32
SECTION 5 . CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT
AND ACQUISITION SUB TO EFFECT THE MERGER.....................32
5.1 Accuracy of Representations.....................................32
5.2 Performance of Covenants........................................33
5.3 Stockholder Approval............................................33
5.4 Consents........................................................33
5.5 Compliance Certificate..........................................33
5.6 No Material Adverse Effect......................................33
5.7 HSR Act.........................................................33
5.8 No Restraints...................................................33
5.9 No Governmental Litigation......................................33
5.10 No Other Litigation.............................................34
SECTION 6 . CONDITIONS TO THE COMPANY'S OBLIGATION TO
EFFECT THE MERGER............................................34
6.1 Stockholder Approval............................................34
6.2 No Injunctions; Laws............................................34
6.3 Accuracy of Representations.....................................34
6.4 Performance of Covenants........................................34
6.5 Documents.......................................................35
6.6 HSR Act.........................................................35
6.7 No Restraints...................................................35
6.8 No Governmental Litigation......................................35
6.9 No Other Litigation.............................................35
SECTION 7 . TERMINATION...............................................35
7.1 Termination.....................................................35
7.2 Effect of Termination...........................................36
iii.
TABLE OF CONTENTS
(CONTINUED)
PAGE
7.3 Termination Fee.................................................37
SECTION 8 . MISCELLANEOUS PROVISIONS..................................37
8.1 Amendment.......................................................37
8.2 Waiver..........................................................38
8.3 No Survival of Representations and Warranties...................38
8.4 Entire Agreement; Counterparts..................................38
8.5 Applicable Law; Jurisdiction....................................38
8.6 Attorneys' Fees.................................................38
8.7 Payment of Expenses.............................................38
8.8 Binding Effect; Assignability...................................38
8.9 Notices.........................................................39
8.10 Severability....................................................39
8.11 Remedies Cumulative; Specific Performance.......................40
8.12 Obligation of Parent............................................40
8.13 Construction....................................................40
EXHIBIT A (Certain Definitions)..............................................A-1
iv.
EXECUTION COPY
AGREEMENT AND PLAN
OF MERGER
THIS AGREEMENT AND PLAN OF MERGER ("AGREEMENT") is made and entered
into as of September 9, 2001, by and among: CRANE MERGERCO HOLDINGS, INC., a
Delaware corporation ("PARENT"); CRANE MERGERCO INC., a Delaware corporation and
a wholly owned subsidiary of Parent ("ACQUISITION SUB"); and AMERICAN COIN
MERCHANDISING, INC., a Delaware corporation (the "COMPANY"). Certain capitalized
terms used in this Agreement are defined in Exhibit A.
RECITALS
WHEREAS, each of the Boards of Directors of the Company, Parent and
Acquisition Sub has determined that it is in the best interests of its
respective stockholders for Parent to acquire the Company on the terms and
subject to the conditions set forth herein (the "ACQUISITION");
WHEREAS, the Company, Parent and Acquisition Sub each desire that
Parent cause Acquisition Sub to purchase all of the issued and outstanding
Common Stock, par value $.01 per share, of the Company ("SHARES"), for $8.50 per
share, net to the seller in cash, on the terms and subject to the conditions set
forth in this Agreement;
WHEREAS, to complete the Acquisition, the respective Boards of
Directors of the Company, Parent, on its own behalf as a party to this Agreement
and as the sole stockholder of Acquisition Sub, and Acquisition Sub have
approved this Agreement and the merger of Acquisition Sub with and into the
Company, with the Company as the surviving corporation of such merger, wherein
all issued and outstanding Shares (other than Appraisal Shares described in
Section 1.8(c) hereof and Shares held by Parent, Acquisition Sub or any other
subsidiary of Parent) will be converted into the right to receive the Merger
Consideration (as hereinafter defined), on the terms and subject to the
conditions of this Agreement and in accordance with the Delaware General
Corporation Law (the "DGCL");
WHEREAS, the Board of Directors of the Company has declared that this
Agreement is advisable and resolved to recommend that all holders of Shares (the
"STOCKHOLDERS") approve this Agreement and the Merger (as defined below), and
has determined that the Merger is fair to and in the best interests of the
Company and the Stockholders;
WHEREAS, concurrently with the execution and delivery of this
Agreement, certain Stockholders (collectively, the "IDENTIFIED STOCKHOLDERS")
have duly executed and delivered to Parent Voting Agreements pursuant to which,
among other things, each of the Identified Stockholders has granted an
irrevocable proxy to Parent and a representative of Parent agreed to
vote all Shares owned, or later acquired, by such Identified Stockholder to
approve this Agreement and the Merger, each on the terms set forth in such
Voting Agreements; and
WHEREAS, the parties desire to make certain representations, warranties
and covenants in connection with the Merger and also to prescribe various terms
and conditions of the Merger.
NOW, THEREFORE, in consideration of the premises and the
representations, warranties, covenants and agreements herein contained, and
intending to be legally bound hereby, the Company, Parent and Acquisition Sub
hereby agree as follows:
SECTION 1. THE MERGER; EFFECTIVE TIME
1.1 MERGER OF ACQUISITION SUB INTO THE COMPANY. Upon the terms and
subject to the conditions set forth in this Agreement and in accordance with the
DGCL, at the Effective Time (as defined in Section 1.3), Acquisition Sub shall
be merged with and into the Company (the merger of Acquisition Sub into the
Company being referred to herein as the "MERGER"), and the separate existence of
Acquisition Sub shall cease. The Company will continue as the surviving
corporation in the Merger (the "SURVIVING CORPORATION").
1.2 EFFECT OF THE MERGER. The Merger shall have the effects set forth
in this Agreement and in the applicable provisions of the DGCL.
1.3 CLOSING; EFFECTIVE TIME. At a date designated by the Company, which
date shall be no later than the third business day after the satisfaction or
waiver of the conditions set forth in Sections 5 and 6, the parties hereto shall
cause a properly executed certificate of merger (or, if appropriate, a
certificate of ownership and merger) conforming to the requirements of the DGCL
(the "CERTIFICATE OF MERGER") to be filed with the Secretary of State of the
State of Delaware. The Merger shall take effect at the time the Certificate of
Merger is filed with the Secretary of State of the State of Delaware (the
"EFFECTIVE TIME"). At 10:00 a.m. (
Colorado time) on the date (the "CLOSING
DATE") on which the Certificate of Merger is to be so filed, a closing (the
"CLOSING") shall be held at the offices of Xxxxxx Godward LLP, 000 Xxxxxxxxxxx
Xxxxxxxx, Xxxxx 000, Xxxxxxxxxx, XX 00000 (or such other place or time as Parent
and the Company may jointly designate) for the purpose of confirming the
satisfaction or waiver of each of the conditions set forth in Sections 5 and 6.
1.4 CERTIFICATE OF INCORPORATION AND BYLAWS; DIRECTORS. Unless
otherwise jointly determined by Parent and the Company prior to the Effective
Time:
(a) subject to Section 4.11, the Certificate of Incorporation
of the Surviving Corporation shall be amended and restated as of the
Effective Time to conform to the Certificate of Incorporation of
Acquisition Sub as in effect immediately prior to the Effective Time;
(b) subject to Section 4.11, the Bylaws of the Surviving
Corporation shall be amended and restated as of the Effective Time to
conform to the Bylaws of Acquisition Sub as in effect immediately prior
to the Effective Time; and
2.
(c) the directors and officers of the Surviving Corporation
immediately after the Effective Time shall be the respective
individuals who are directors and officers of Acquisition Sub
immediately prior to the Effective Time.
1.5 CONVERSION OF SHARES. Subject to Section 1.8, at the Effective
Time, by virtue of the Merger and without any further action on the part of
Parent, Acquisition Sub, the Company or any Stockholder of the Company:
(a) any Shares then held by the Company or any Subsidiary of
the Company (or held in the Company's treasury) shall cease to exist,
and no consideration shall be delivered in exchange therefor;
(b) any Shares then held by Parent, Acquisition Sub or any
other subsidiary of Parent shall cease to exist, and no consideration
shall be delivered in exchange therefor;
(c) except as provided in clauses "(a)" and "(b)" above, each
Share then outstanding (including any outstanding Shares subject to any
repurchase rights in favor of the Company, but excluding any Appraisal
Shares, as defined in Section 1.8(c)) shall be converted into the right
to receive $8.50 in cash without interest (the "MERGER CONSIDERATION");
(d) each share of Common Stock, par value $.01 per share, of
Acquisition Sub then outstanding shall be converted into one Share; and
(e) if, between the date of this Agreement and the Effective
Time, the outstanding Shares are changed into a different number or
class of Shares by reason of any stock split, division or subdivision
of shares, stock dividend, reverse stock split, consolidation of
Shares, reclassification, recapitalization or other similar
transaction, then the Merger Consideration shall be appropriately
adjusted so that the aggregate Merger Consideration shall remain the
same.
1.6 CLOSING OF THE COMPANY'S TRANSFER BOOKS. At the Effective Time: (a)
all Shares outstanding immediately prior to the Effective Time shall cease to
exist as provided in Section 1.5 and all holders of certificates representing
Shares that were outstanding immediately prior to the Effective Time shall cease
to have any rights as Stockholders of the Company; and (b) the stock transfer
books of the Company shall be closed with respect to all Shares outstanding
immediately prior to the Effective Time. No further transfer of any such Shares
shall be made on such stock transfer books after the Effective Time. If, after
the Effective Time, a valid certificate previously representing any of such
Shares (a "COMPANY STOCK CERTIFICATE") is presented to the Paying Agent (as
defined in Section 1.7) or to the Surviving Corporation or Parent, such Company
Stock Certificate shall be canceled and shall be exchanged as provided in
Section 1.7.
1.7 PAYMENT FOR SHARES.
(a) As soon as practicable following receipt of the Required
Stockholder Vote (as defined in Section 2.27 below), (i) Parent shall select a
reputable bank or trust company to act as paying agent under this Agreement (the
"PAYING AGENT"), and (ii) Parent shall deposit with the Paying Agent cash
amounts sufficient to enable the Paying Agent to make payments pursuant
3.
to Section 1.5 to all holders of Shares outstanding immediately prior to the
Effective Time (other than Appraisal Shares).
(b) Promptly after the Effective Time, Parent shall cause the
Paying Agent to mail to each Person who was, immediately prior to the Effective
Time, a holder of record of Shares (other than Appraisal Shares) a form of
letter of transmittal in customary form and containing such provisions as are
mutually agreed to by Parent and the Company (including a provision confirming
that, subject to Section 1.7(d), delivery of Company Stock Certificates shall be
effected, and risk of loss and title shall pass, only upon delivery of the
Company Stock Certificates to the Paying Agent) and instructions for use in
effecting the surrender of Company Stock Certificates in exchange for payment
therefor. Parent shall deliver irrevocable written instructions to the Paying
Agent in form and substance reasonably satisfactory to the Company to make the
payments referred to in Section 1.5 and shall otherwise ensure that, upon
surrender to the Paying Agent of a Company Stock Certificate, together with a
properly executed letter of transmittal, the holder of such Company Stock
Certificate (or, under the circumstances described in Section 1.7(e), the
transferring of the Shares represented by such Company Stock Certificate) shall
promptly receive in exchange therefor the amount of cash to which such Person is
entitled pursuant to this Agreement.
(c) On or after the date which is one hundred eighty (180) days
after the Effective Time, the Surviving Corporation shall be entitled to cause
the Paying Agent to deliver to the Surviving Corporation any funds made
available to the Paying Agent which have not been disbursed to holders of
Company Stock Certificates, and thereafter Parent and the Surviving Corporation
shall be jointly and severally liable with respect to the cash amounts payable
upon surrender of their Company Stock Certificates. Neither Parent, the Paying
Agent nor the Surviving Corporation shall be liable to any holder of a Company
Stock Certificate or of any Company Options for any amount properly paid to a
public official pursuant to any applicable abandoned property, escheat or
similar law.
(d) If any Company Stock Certificate shall have been lost, stolen
or destroyed, then, upon the making of an affidavit of that fact by the Person
claiming such Company Stock Certificate to be lost, stolen or destroyed (and, if
required by the Surviving Corporation, the signing of an agreement to indemnify
the Surviving Corporation against any claim that may be made against it with
respect to such Company Stock Certificate), Parent shall cause the Paying Agent
to pay in exchange for such lost, stolen or destroyed Company Stock Certificate
the cash amount payable in respect thereof pursuant to this Agreement.
(e) In the event of a transfer of ownership of Shares which is not
registered in the transfer records of the Company, payment may be made with
respect to such Shares to a transferee of such Shares if the Company Stock
Certificate representing such Shares is presented to the Paying Agent,
accompanied by all documents reasonably required by the Paying Agent to evidence
and effect such transfer and to evidence that any applicable stock transfer
taxes relating to such transfer have been paid.
(f) Each of the Paying Agent, Parent and the Surviving Corporation
shall be entitled to deduct and withhold from any consideration payable or
otherwise deliverable pursuant to this Agreement to any holder or former holder
of Shares or options such amounts as may be
4.
required to be deducted or withheld therefrom under the Code or any provision of
state, local or foreign tax law or under any other applicable Legal Requirement.
To the extent such amounts are so deducted or withheld, such amounts shall be
treated for all purposes under this Agreement as having been paid to the Person
to whom such amounts would otherwise have been paid and shall be paid to the
appropriate Governmental Entity on behalf of such Person.
(g) The Surviving Corporation shall pay all charges and expenses,
including those of the Paying Agent, in connection with the exchange of the
Merger Consideration for Shares.
1.8 APPRAISAL RIGHTS.
(a) Notwithstanding anything to the contrary contained in this
Agreement, any Shares that constitute Appraisal Shares (as defined in Section
1.8(c)) shall not be converted into or represent the right to receive Merger
Consideration in accordance with Section 1.5, and each holder of Appraisal
Shares shall be entitled only to such rights with respect to such Appraisal
Shares as may be granted to such holder pursuant to Section 262 of the DGCL.
From and after the Effective Time, a holder of Appraisal Shares shall not have
and shall not be entitled to exercise any of the voting rights or other rights
of a stockholder of the Surviving Corporation. If any holder of Appraisal Shares
shall fail to perfect or shall otherwise lose such holder's right of appraisal
under Section 262 of the DGCL, then (i) any right of such holder to require the
Surviving Corporation to purchase the Appraisal Shares for cash shall be
extinguished, and (ii) such Appraisal Shares shall automatically be converted
into and shall represent only the right to receive (upon the surrender of the
certificate or certificates representing such Appraisal Shares) Merger
Consideration in accordance with Section 1.5.
(b) The Company (i) shall give Parent written notice of any demand
by any Stockholder of the Company for appraisal of such Stockholder's Shares
pursuant to the DGCL, and (ii) shall negotiate and proceed with respect to any
such demand pursuant to the instructions of Parent.
(c) For purposes of this Agreement, "APPRAISAL SHARES" shall refer
to any Shares outstanding immediately prior to the Effective Time that are held
by Stockholders who are entitled to demand and who properly demand appraisal of
such Shares pursuant to, and who comply with the applicable provisions of,
Section 262 of the DGCL.
1.9 COMPANY STOCK OPTIONS. The Company, the Company's Board of
Directors and each committee thereof shall promptly after the date of this
Agreement, take all such actions as it is permitted or required to take under
the terms of the Company Stock Option Plans to give effect to Section 4.9
hereof, and Parent and Acquisition Sub shall cooperate with the Company
therewith.
SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company represents and warrants to Parent and Acquisition Sub that,
except to the extent set forth in the disclosure schedule delivered to Parent on
the date of this Agreement (the "COMPANY DISCLOSURE SCHEDULE"):
5.
2.1 DUE ORGANIZATION AND GOOD STANDING; SUBSIDIARIES. Each of the
Acquired Corporations (as defined below) is a corporation duly organized,
validly existing and in good standing under the laws of its respective
jurisdiction of incorporation and has all requisite corporate power and
authority to (i) conduct its business in the manner in which its business is
currently being conducted, (ii) own and use its assets in the manner in which
its assets are currently owned and used, and (iii) perform its obligations under
all Material Contracts by which it is bound. Each Acquired Corporation is
qualified to do business as a foreign corporation, and is in good standing,
under the laws of the jurisdictions where the nature of its business requires
such qualification, except where the failure to so qualify would not have a
Material Adverse Effect on the Company. The Company has no subsidiaries except
for American Coin Merchandising Trust I and ACMI Canada, Inc. Neither subsidiary
constitutes a "Significant Subsidiary" (as defined in Regulation S-X of the SEC)
of the Company. (The Company, together with its subsidiaries are referred to
collectively in this Agreement as the "ACQUIRED CORPORATIONS.") None of the
Acquired Corporations is a general partner of, or is otherwise liable for any of
the debts or other obligations of any general partnership, limited partnership
or other Entity.
2.2 CERTIFICATE OF INCORPORATION; BYLAWS; CORPORATE RECORDS. The
Company has delivered or made available to Parent or its counsel accurate and
complete copies of (i) the certificate of incorporation and bylaws of the
Company and other charter and organizational documents of the respective
Acquired Corporations, including all amendments thereto, and (ii) the minutes of
the meetings of the stockholders of the Company, the Board of Directors of the
Company and all committees of the Board of Directors of the Company and the
other Acquired Corporations since October 13, 1995.
2.3 CAPITALIZATION, ETC.
(a) The authorized capital stock of the Company consists of: (i)
20,000,000 Shares, of which 6,531,774 Shares had been issued and were
outstanding as of September 7, 2001, none of which are held by the Company in
its treasury as of the date of this Agreement; and (ii) 500,000 shares of
Preferred Stock, $0.10 par value per share, of which no shares are outstanding
or are held by the Company in its treasury as of the date of this Agreement. The
Company is not in violation of its certificate of incorporation or bylaws. All
of the outstanding Shares have been duly authorized and validly issued, and are
fully paid and nonassessable. As of the date of this Agreement, there are no
Shares held by any of the other Acquired Corporations. None of the outstanding
Shares is entitled or subject to any preemptive right, right of participation,
right of maintenance or any similar right. None of the outstanding Shares is
subject to any right of first refusal in favor of the Company. There is no
Acquired Corporation Contract relating to the voting or registration of, or
restricting any Person from purchasing, selling, pledging or otherwise disposing
of (or granting any option or similar right with respect to), any Shares. None
of the Acquired Corporations is under any obligation, or is bound by any
Contract pursuant to which it may become obligated, to repurchase, redeem or
otherwise acquire any outstanding Shares,
(b) As of the date of this Agreement: (i) 707,542 Shares are
subject to issuance pursuant to outstanding options to purchase Shares or
existing contractual obligations to issue shares; (ii) 692,458 Shares are
reserved for future issuance pursuant to the Company Stock
6.
Option Plans; (iii) 143,295 Shares are reserved for future issuance pursuant to
the Company's Employee Stock Purchase Plan (the "ESPP"); and (iv) 500,000 shares
of Preferred Stock are reserved for future issuance pursuant to the Rights
Agreement between the Company and Norwest Bank Minnesota, N.A., dated as of
April 29, 1999 (the "RIGHTS AGREEMENT"). (Stock options granted by the Company
pursuant to the Company Stock Option Plans or otherwise are referred to in this
Agreement as "COMPANY OPTIONS.") Section 2.3(b) of the Company Disclosure
Schedule sets forth the following information with respect to each Company
Option or contractual obligation outstanding as of the date of this Agreement:
(i) the particular plan (if any) or agreement pursuant to which such Company
Option or contractual obligation was granted or incurred; (ii) the name of the
optionee; (iii) the number of Shares subject to such Company Option or
contractual obligation; and (iv) the exercise price of such Company Option. The
Company has delivered or made available to Parent or its counsel accurate and
complete copies of all Company Stock Option Plans covering the Company Options
outstanding as of the date of this Agreement, and the forms of all stock option
and all other agreements related to or evidencing such Company Options or such
contractual obligations.
(c) Except for options, rights, securities, instruments,
obligations and plans referred to in Section 2.3(b), as of the date of this
Agreement, there is no: (i) outstanding subscription, option, call, warrant or
right to acquire any shares of the capital stock of the Company; (ii)
outstanding security, instrument or obligation that is or may become convertible
into or exchangeable for any shares of the capital stock of the Company; (iii)
stockholder rights plan (or similar plan commonly referred to as a "poison
pill") under which the Company is or may become obligated to sell or otherwise
issue any shares of its capital stock or any other securities; or (iv) to the
best of the knowledge of the Company, any claim, condition or circumstance by
any Person to the effect that such Person is entitled to acquire or receive any
shares of capital stock or other securities of the Company.
(d) Except as set forth in Section 2.3(d) of the Company Disclosure
Schedule, all outstanding shares of each Acquired Corporation have been issued
and granted in compliance with (i) all applicable securities laws and other
applicable Legal Requirements, and (ii) all requirements set forth in applicable
Contracts.
(e) All of the outstanding shares of capital stock of the Acquired
Corporations have been duty authorized and are validly issued, are fully paid
and nonassessable, and all of the shares of capital stock of the Acquired
Corporations (other than the Company), are owned beneficially and of record by
the Company, free and clear of any Encumbrances other than restrictions arising
under the Securities Act.
2.4 SEC FILINGS; FINANCIAL STATEMENTS.
(a) All registration statements (on a form other than Form S-8),
reports and definitive proxy statements required to be filed by the Company with
the SEC between January 1, 2000 and the date of this Agreement (the "COMPANY SEC
DOCUMENTS") have been so filed. As of the time it was filed with the SEC (or, if
amended or superseded by a filing prior to the date of this Agreement, then on
the date of such filing): (i) each of the Company SEC Documents
7.
complied in all material respects with the applicable requirements of the
Securities Act or the Exchange Act (as the case may be); and (ii) none of the
Company SEC Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.
(b) As of the time filed with the SEC, the financial statements
(including any related notes) contained in the Company SEC Documents: (i)
complied as to form in all material respects with the published rules and
regulations of the SEC applicable thereto; (ii) were prepared in accordance with
GAAP applied on a consistent basis throughout the periods covered (except as may
be indicated in the notes to such financial statements or, in the case of
unaudited statements, as permitted by Form 10-Q of the SEC, and except that
unaudited financial statements may not contain footnotes and are subject to
normal and recurring year-end adjustments); and (iii) fairly presented, in all
material respects, the financial position of the Acquired Corporations, as of
the respective dates thereof and the results of operations of the Acquired
Corporations for the periods covered thereby.
2.5 ABSENCE OF CERTAIN CHANGES. Between December 31, 2000 and the date
of this Agreement, except as set forth in the Company's financial statements
contained in the June 30, 2001 Form 10-Q (as defined in Section 2.7 below) and
the notes related thereto, neither the Company nor any other Acquired
Corporation has:
(a) suffered any adverse change with respect to its business or
financial condition which has had a Material Adverse Effect on the Company;
(b) suffered any loss, damage or destruction to or any material
interruption in the use of any of the assets of any Acquired Corporation that
has had a Material Adverse Effect on the Company;
(c) amended its certificate of incorporation or bylaws or any other
charter or organizational documents;
(d) changed, in any material respect, its accounting methods,
principles or practices except as required by changes in GAAP;
(e) sold or transferred any material portion of its assets, except
in the ordinary course of business;
(f) declared, set aside or paid any dividend or other distribution
with respect to any of its capital stock;
(g) except pursuant to the terms of the instrument pursuant to
which such rights were granted, a list of such instruments which is set forth in
Section 2.5(g) of the Company Disclosure Schedule, the Company has not amended
or waived any of its rights under, or permitted the acceleration of vesting
under, (i) any provision of any of the Company Stock Option Plans, (ii) any
provision of any agreement evidencing any outstanding Company Option, or (iii)
any restricted stock purchase agreement.
8.
(h) effected or been a party to any merger, consolidation,
amalgamation, share exchange, business combination, recapitalization,
reclassification of shares, stock split, division or subdivision of shares,
reverse stock split, consolidation of shares or similar transaction;
(i) none of the Acquired Corporations has formed any Subsidiary or
acquired any equity interest or other interest in any other Entity;
(j) none of the Acquired Corporations has made any capital
expenditure which, when added to all other capital expenditures made on behalf
of the Acquired Corporations since June 30, 2001, exceeds $2,000,000 in the
aggregate;
(k) except as set forth in Section 2.5(k) of the Company Disclosure
Schedule, entered into, amended or terminated, or waived any material right or
remedy under, any Material Contract;
(l) (i) acquired, leased or licensed any material right or other
material asset from any other Person or (ii) sold or otherwise disposed of, or
leased or licensed, any material right or other material assets to any other
Person, in either case other than in the ordinary course of business;
(m) except as set forth in Section 2.5(m) of the Company Disclosure
Schedule, written off as uncollectible, or established any extraordinary reserve
with respect to, any accounts receivable or other indebtedness other than in the
ordinary course of business and which in the aggregate are not material to the
Company;
(n) made any pledge of any of its assets or otherwise permitted any
of its assets to become subject to any Encumbrance, except for pledges of
immaterial assets made in the ordinary course of business and consistent with
past practices;
(o) (i) lent money to any Person, or (ii) incurred or guaranteed
any indebtedness for borrowed money, in each case other than in the ordinary
course of business;
(p) except as set forth in Section 2.5(p) of the Company Disclosure
Schedule, (i) established or adopted any Plan (as defined in Section 2.13(a)),
(ii) caused or permitted any Plan to be amended in any material respect; or
(iii) paid any bonus or made any profit-sharing or similar payment to, or
materially increased the amount of the wages, salary, commissions, fringe
benefits or other compensation or remuneration payable to, any of its directors,
officers or employees other than bonuses, raises or other similar compensation
paid or given in the ordinary course of business consistent with past practice;
(q) made any Tax election;
(r) commenced or settled any Legal Proceeding;
(s) entered into any material transaction or taken any other
material action that has had a Material Adverse Effect on the Acquired
Corporations;
9.
(t) entered into any material transaction outside the ordinary
course of business or inconsistent with past practices;
(u) entered into any agreement to take any of the actions referred
to in clauses "(c)" through "(t)" of this sentence.
2.6 PROPRIETARY ASSETS.
(a) (i) Section 2.6(a)(i) of the Company Disclosure Schedule sets
forth, with respect to each Proprietary Asset owned by the Acquired Corporations
and registered with any Governmental Entity or for which an application has been
filed with any Governmental Entity: (A) a brief description of such Proprietary
Asset; and (B) the names of the jurisdictions covered by the applicable
registration or application.
(ii) Section 2.6(a)(ii) of the Company Disclosure Schedule
identifies and provides a brief description of all other Proprietary Assets
owned by the Acquired Corporations that are material to the business of the
Acquired Corporations.
(iii) Section 2.6(a)(iii) of the Company Disclosure Schedule
identifies and provides a brief description of any ongoing royalty or payment
obligations with respect to, each Proprietary Asset that is licensed or
otherwise made available to the Acquired Corporations by any Person and is
material to the business of the Acquired Corporations (except for any
Proprietary Asset that is licensed to the Acquired Corporations under any third
party software license generally available to the public), and identifies the
Contract under which such Proprietary Asset is being licensed or otherwise made
available to such Acquired Corporation.
(iv) The Acquired Corporations have good, valid and marketable
title to all of the Acquired Corporation Proprietary Assets identified in
Sections 2.6(a)(i) and 2.6(a)(ii) of the Company Disclosure Schedule, free and
clear of all Encumbrances, except for (A) any lien for current taxes not yet due
and payable, and (B) minor liens that have arisen in the ordinary course of
business and that do not (individually or in the aggregate) materially detract
from the value of the asset subject thereto or materially impair the operations
of any of the Acquired Corporations. The Acquired Corporations have a valid
right to use, license and otherwise exploit all Proprietary Assets identified in
Sections 2.6(a)(i) and 2.6(a)(ii) of the Company Disclosure Schedule. Except as
set forth in Section 2.6(a)(iv) of the Company Disclosure Schedule, none of the
Acquired Corporations has developed jointly with any other Person any Acquired
Corporation Proprietary Asset that is material to the business of the Acquired
Corporations with respect to which such other Person has ownership rights, it
being acknowledged for this purpose, Proprietary Assets do not include any data
which a Person may have provided to the Company, and "developed jointly" and do
not include any facility or assistance such Person may have provided to the
Company with respect to data acquisition. Such data, facility and assistance are
identified in Part 2.6(a)(iv) of the Company Disclosure Schedule.
(b) The Acquired Corporations have taken reasonable measures and
precautions to protect and maintain the confidentiality and secrecy of all
Acquired Corporation Proprietary Assets that are material to the business of the
Acquired Corporations (except
10.
Acquired Corporation Proprietary Assets whose value would be unimpaired by
disclosure). Without limiting the generality of the foregoing, except as set
forth in Section 2.6(b) of the Company Disclosure Schedule (i) since January 1,
2000, all current and former employees of the Acquired Corporations who are or
were involved in, or who have contributed to, the creation or development of any
material Acquired Corporation Proprietary Asset have executed and delivered to
the Acquired Corporations an agreement that is substantially similar to the form
of Employee Secrecy Agreement previously delivered by the Company to Parent, and
(ii) since June 30, 1998, all current and former consultants and independent
contractors to the Acquired Corporations who are or were involved in, or who
have contributed to, the creation or development of any material Acquired
Corporation Proprietary Asset have executed and delivered to the Company an
agreement that contains restrictions substantially similar to those contained in
the form of Confidentiality Agreement previously delivered to Parent. To the
Company's knowledge, no current or former employee, officer, director,
stockholder, consultant or independent contractor has any right, claim or
interest in or with respect to any Acquired Corporation Proprietary Assets.
(c) To the knowledge of the Company: (i) all patents, trademarks,
service marks and copyrights listed in Section 2.6(a)(i) of the Company
Disclosure Schedule are valid and subsisting; (ii) none of the Acquired
Corporation Proprietary Assets and no Proprietary Asset that is currently being
developed by any of the Acquired Corporations (either by itself or with any
other Person) infringes or misappropriates any Proprietary Assets owned or used
by any other Person, (iii) none of the products that are or have been designed,
created, developed, assembled, manufactured or sold by any of the Acquired
Corporations is infringing, misappropriating or making any unlawful or
unauthorized use of any Proprietary Assets owned or used by any other Person,
and none of such products has at any time infringed, misappropriated or made any
unlawful or unauthorized use of, and none of the Acquired Corporations has
received any written notice or other written communication of any actual,
alleged, possible or potential infringement, misappropriation or unlawful or
unauthorized use of, any Proprietary Asset owned or used by any other Person;
and (iv) no other Person is infringing, misappropriating or making any unlawful
or unauthorized use of, and no Proprietary Assets owned or used by any other
Person infringes, any material Acquired Corporation Proprietary Asset.
(d) The Acquired Corporation Proprietary Assets constitute all the
Proprietary Assets necessary to enable the Acquired Corporations to conduct
their business in the manner in which such business has been and is now being
conducted. Except as set forth in Section 2.6(d) of the Company Disclosure
Schedule, none of the Acquired Corporations has (i) licensed any of the material
Acquired Corporation Proprietary Assets to any Person on an exclusive basis, or
(ii) entered into any covenant not to compete or Contract limiting its ability
to exploit fully any material Acquired Corporation Proprietary Assets or to
transact business in any market or geographical area or with any Person.
(e) To the knowledge of the Company, no current or former executive
officer of the Company is competing against, soliciting customers or employees
from, or using Proprietary Assets of the Company.
11.
2.7 TITLE TO ASSETS; REAL PROPERTY. The Acquired Corporations own, and
have good and valid title to, all tangible assets reflected on the balance sheet
included in the Company's Report on Form 10-Q filed with the SEC for the fiscal
quarter ended June 30, 2001 (the "JUNE 30, 2001 FORM 10-Q") (except for tangible
assets sold or disposed of since June 30, 2001 in the ordinary course of
business consistent with past practice) free and clear of any Encumbrances,
except that such tangible assets may be subject to (a) liens for Taxes not yet
due and payable, (b) liens, encumbrances or imperfections of title that have
arisen in the ordinary course of business, (c) the specific liens, encumbrances
or imperfections of title identified in Section 2.7(c) of the Company Disclosure
Schedule resulting from or relating to any of the contracts referred to in such
Section of the Company Disclosure Schedule and (d) liens, encumbrances or
imperfections of title relating to liabilities reflected in the financial
statements (including any related notes) contained in the Company SEC Documents.
The Company does not own any interest in any real property other than leaseholds
created under the real property leases identified in Section 2.7 of the
Disclosure Schedule.
2.8 CONTRACTS. The Company has delivered or made available to Parent an
accurate and complete copy of each contract that is currently in effect and
either (i) has been filed (or is required to be filed) by the Company as an
exhibit to a Report on Form 10-K under the Exchange Act, (ii) is a location
contract that generates, or is reasonably expected to generate, aggregate
revenues for the Acquired Corporations in excess of $1,000,000 on an annualized
basis or (iii) is a contract other than a location contract that requires by its
terms payments by the Company (excluding payments already paid) in excess of
$100,000 (each, a "MATERIAL CONTRACT"). Except as set forth in Section 2.8 of
the Company Disclosure Schedule, no Acquired Corporation is in breach of or
default under any Material Contract, except for breaches and defaults that would
not have a Material Adverse Effect on such Acquired Corporation; and, to the
knowledge of the Company, no other Person is in breach of or default under any
Material Contract, except for breaches and defaults that would not have a
Material Adverse Effect on the Company. With respect to the Company's
obligations under the Material Contracts, each Material Contract is valid and in
full force and effect and is enforceable against the Company in accordance with
its terms. With respect to the obligations of third parties under the Material
Contracts, to the knowledge of the Company, each Material Contract is valid and
in full force and effect and, to the knowledge of the Company, is enforceable
against such third parties in accordance with its terms. Except as set forth in
Section 2.8 of the Company Disclosure Schedule, to the best of the knowledge of
the Company, no event has occurred, and no circumstance or condition exists,
that (with or without notice or lapse of time) may (a) give any Person the right
to declare a default or exercise any remedy under any Material Contract, (b)
give any Person the right to accelerate the maturity or performance of any
Material Contract, or (c) give any Person the right to cancel, terminate or
modify any Material Contract, except in each such case for defaults,
acceleration rights, termination rights and other rights that have not had and
would not reasonably be expected to have a Material Adverse Effect on the
Company. None of the Acquired Corporations has received any written notice or
other communication regarding any actual or possible violation or breach of, or
default under, any Material Contract, except in each such case for defaults,
acceleration rights, termination rights and other rights that have not had and
would not reasonably be expected to have a Material Adverse Effect on the
Company. With respect to each location contract that does generate, or is
reasonably expected to generate, aggregate revenues for the Acquired
Corporations in excess of $100,000 on an annualized basis, but less than
$1,000,000 on an annualized basis ("SIGNIFICANT CUSTOMER CONTRACTS"), (i) all
such
12.
Significant Customer Contracts are valid and enforceable with respect to the
Acquired Corporations and, to the knowledge of the Company, the other parties
thereto, (ii) no Acquired Corporation is in material breach or default of such
Significant Customer Contracts and (iii) to the knowledge of the Company, no
circumstance or conditions exist that (with or without notice or lapse of time)
may give any person the right to declare a default or exercise any remedy under
a Significant Customer Contract or give any person the right to cancel or
terminate any Significant Customer Contract, except, with respect to any of the
foregoing, for breaches, defaults, and all other events and conditions described
in this sentence that will not result in lost revenues to the Acquired
Corporations in excess of $1,300,000.
2.9 COMPLIANCE WITH LEGAL REQUIREMENTS. Except as set forth in Section
2.9 of the Company Disclosure Schedule, each of the Acquired Corporations is,
and has at all times been, in compliance with all material Legal Requirements.
Except as set forth in Section 2.9 of the Company Disclosure Schedule, none of
the Acquired Corporations has received any written notice from any Governmental
Entity or other Person regarding any actual or alleged violation of, or failure
to comply with, any Legal Requirement, the impact of which is, was or is
reasonably expected to be material to the Company.
2.10 LEGAL PROCEEDINGS; ORDERS. Except as set forth in Section 2.10 of
the Company Disclosure Schedule, as of the date of this Agreement:
(a) there is no Legal Proceeding pending (or, to the knowledge of
the Company, being overtly threatened) against any Acquired Corporation;
(b) there is no material order, writ, injunction or judgment to
which any Acquired Corporation is subject; and
(c) to the Company's knowledge, no investigation or review by any
Governmental Entity with respect to the Company is pending or is being overtly
threatened.
2.11 GOVERNMENTAL AUTHORIZATIONS. As of the date of this Agreement, the
Acquired Corporations hold all Governmental Authorizations necessary to enable
the Acquired Corporations to conduct their businesses in the manner in which
their businesses are currently being conducted. The Governmental Authorizations
held by the Company are valid and in full force and effect. Except as set forth
in Section 2.11 of the Company Disclosure Schedule, the Company is, and at all
times since its formation has been, in compliance with the terms and
requirements of such Governmental Authorizations. Between January 1, 2001 and
the date of this Agreement, the Company has not received any written notice from
any Governmental Entity (a) asserting any material violation of or failure to
comply with any term or requirement of any material Governmental Authorization
or (b) notifying the Company of the actual or threatened revocation, suspension,
cancellation, termination, modification or withdrawal of any material
Governmental Authorization. Section 2.11 of the Company Disclosure Schedule sets
forth each of the material Governmental Authorizations held by the Acquired
Corporations.
2.12 TAX MATTERS.
(a) All Tax Returns required to be filed by the Acquired
Corporations with any Governmental Entities before the Effective Time (the
"COMPANY RETURNS") (i) have been or
13.
will be filed on or before the applicable due date (as such due date may have
been or may be extended), and (ii) have been, or will be when filed, prepared in
compliance with applicable Legal Requirements. The amounts shown on the Company
Returns to be due at or before the Effective Time have been or will be paid at
or before the Effective Time. The Company has not been a United States real
property holding corporation within the meaning of Section 897(c)(2) of the Code
during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code.
(b) The balance sheet included in the June 30, 2001 Form 10-Q
fully accrues the Company's material and contingent liabilities for Taxes with
respect to all periods through June 30, 2001 in accordance with GAAP. Each
Acquired Corporation will establish, in the ordinary course of business and
consistent with its past practices, appropriate reserves for the payment of
Taxes due for the period from January 1, 2001 through the Effective Time, and
will disclose the amount of such reserves to Parent no later than 10 business
days prior to the Closing Date. Since June 30, 2001, none of the Acquired
Corporations has incurred any Liability for any Tax other than in the ordinary
course of its business.
(c) Except as set forth in Section 2.12(c) of the Company
Disclosure Schedule, no examinations or audits of any Company Return is ongoing,
and no extension or waiver of the limitation period applicable to any Company
Return is in effect or has been requested by an Acquired Corporation. No Legal
Proceeding is pending (or, to the knowledge of the Company, is being threatened)
by any tax authority against any Acquired Corporation in respect of any material
Tax. There are no material unsatisfied liabilities for Taxes with respect to any
notice of deficiency or similar document received by any Acquired Corporation
with respect to any material Tax (other than liabilities for Taxes asserted
under any such notice of deficiency or similar document which are being
contested in good faith and with respect to which adequate reserves for payment
have been established on the June 30, 2001 Form 10-Q). There are no liens for
material Taxes upon any of the assets of any Acquired Corporation, except liens
for current Taxes not yet due and payable. None of the Acquired Corporations has
entered into or become bound by any agreement or consent pursuant to Section
341(f) of the Code. None of the Acquired Corporations is or will be required to
include any adjustment in taxable income for any tax period pursuant to Section
481 or 263A of the Code or any comparable provision under state or foreign Tax
laws as a result of transactions or events occurring, or accounting methods
employed, prior to the date of this Agreement. The Company has not been a member
of any combined, consolidated or unitary group for which it is or will be liable
for Taxes under principles of Section 1.1502-6 of the Treasury Regulations
except the group of which the Company is a common parent.
(d) Except as set forth in Section 2.12(d) of the Company
Disclosure Schedule, none of the Acquired Corporations is a party to or bound by
any agreement, plan, arrangement or other Contract covering any current or
former employee or independent contractor of any of the Acquired Corporations,
considered individually or with any other such Contract, that will give rise to
any material payment that would not be deductible pursuant to Section 280G or
Section 162(m) of the Code (or any provision that is comparable under state or
foreign Tax laws). None of the Acquired Corporations is, or has ever been, a
party to or bound by any material tax indemnity agreement, tax sharing
agreement, tax allocation agreement or similar contract.
14.
2.13 EMPLOYEE BENEFIT PLANS.
(a) Section 2.13(a) of the Company Disclosure Schedule identifies
each material salary, bonus, deferred compensation, incentive compensation,
stock purchase, stock option, severance pay, termination pay, hospitalization,
medical, insurance, supplemental unemployment benefits, profit-sharing, pension
or retirement plan, program or agreement maintained, sponsored, contributed to
or required to be contributed to by any of the Acquired Corporations for the
benefit of any current or former employee, director or consultant of any of the
Acquired Corporations. (All plans, programs and agreements referred to in the
prior sentence are referred to in this Agreement as the "PLANS.")
(b) Except as set forth in Section 2.13(a) of the Company
Disclosure Schedule, none of the Acquired Corporations maintains, sponsors or
contributes to, and none of the Acquired Corporations has at any time in the
past maintained, sponsored or contributed to, any employee pension benefit plan
(as defined in Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA")) or any similar pension benefit plan under the laws
of any foreign jurisdiction, whether or not excluded from coverage under
specific Titles or Merger Subtitles of ERISA), for the benefit of any current or
former employee or director of any of the Acquired Corporations (a "PENSION
PLAN").
(c) Except as set forth in Section 2.13(a) of the Company
Disclosure Schedule, none of the Acquired Corporations maintains, sponsors or
contributes to any: (i) employee welfare benefit plan (as defined in Section
3(l) of ERISA) or any similar welfare benefit plan under the laws of any foreign
jurisdiction, whether or not excluded from coverage under specific Titles or
Merger Subtitles of ERISA, for the benefit of any current or former employee or
director of any of the Acquired Corporations (a "WELFARE PLAN"), or (ii)
self-funded medical, dental or other similar Plan. None of the Plans identified
in the Company Disclosure Schedule is a multiemployer plan (within the meaning
of Section 3(37) of ERISA).
(d) With respect to each material Plan, the Company has delivered
to Parent or Parent's advisors or representatives: (i) an accurate and complete
copy of such Plan (including all amendments thereto); (ii) an accurate and
complete copy of the annual report, if required under ERISA, with respect to
such Plan for each of the last two years; (iii) an accurate and complete copy of
the most recent summary plan description, together with each Summary of Material
Modifications, if required under ERISA, with respect to such Plan; (iv) if such
Plan is funded through a trust or any third party funding vehicle, an accurate
and complete copy of the trust or other funding agreement (including all
amendments thereto) and accurate and complete copies of the most recent
financial statements thereof; (v) accurate and complete copies of all Contracts
relating to such Plan, including service provider agreements, insurance
contracts, minimum premium contracted, stop-loss agreements, investment
management agreements, subscription and participation agreements and
recordkeeping agreements; and (vi) an accurate and complete copy of the most
recent determination letter received from the Internal Revenue Service with
respect to such Plan (if such Plan is intended to be qualified under Section
401(a) of the Code).
(e) None of the Acquired Corporations is or has ever been required
to be treated as a single employer with any other Person under Section
4001(b)(1) of ERISA or
15.
Section 414(b), (c), (m) or (o) of the Code. None of the Acquired Corporations
has ever been a member of an "affiliate service group" within the meaning of
Section 414(m) of the Code. None of the Acquired Corporations has ever made a
complete or partial withdrawal from a multiemployer plan, as such term is
defined in Section 3(37) of ERISA, resulting in "withdrawal liability," as such
term is defined in Section 4201 of ERISA (without regard to any subsequent
reduction or waiver of such liability under either Section 4207 or 4208 of
ERISA).
(f) None of the Acquired Corporations has any plan or commitment
to create any Welfare Plan or any Pension Plan, or to modify or change any
existing Welfare Plan or Pension Plan (other than to comply with applicable law)
in a manner that materially would affect any current or former employee or
director of any of the Acquired Corporations.
(g) No Plan provides death, medical or health benefits (whether or
not insured) with respect to any current or former employee or director of any
of the Acquired Corporations after any termination of service of such employee
or director (other than (i) benefit coverage mandated by applicable law,
including coverage provided pursuant to Section 4980B of the Code, (ii) deferred
compensation benefits accrued as liabilities on the June 30, 2001 Form 10-Q,
(iii) benefits the full cost of which are borne by current or former employees
or directors of any of the Acquired Corporations (or their beneficiaries)).
(h) With respect to any Plan constituting a group health plan
within the meaning of Section 4980B(g)(2) of the Code, the provisions of Section
4980B of the Code ("COBRA") have been complied with in all material respects.
(i) Each of the Plans has been operated and administered in all
material respects in accordance with applicable Legal Requirements, including
ERISA, the Code and applicable foreign Legal Requirements.
(j) Each of the Plans intended to be qualified under Section
401(a) of the Code has received a favorable determination letter from the
Internal Revenue Service, and the Company is not aware of any reason why any
such determination letter could be revoked.
(k) Except as set forth in Section 2.13(k) of the Company
Disclosure Schedule, neither the execution, delivery or performance of this
Agreement, nor the consummation of the Merger or any of the other transactions
contemplated by this Agreement will result in any bonus, golden parachute,
severance or other payment or obligation to any current or former employee or
director of any of the Acquired Corporations (whether or not under any Plan), or
materially increase the benefits payable or provided under any Plan, or result
in any acceleration of the time of payment, provision or vesting of any such
benefit.
(l) Section 2.13(l) of the Company Disclosure Schedule identifies
each employee of each of the Acquired Corporations as of the date of this
Agreement, and correctly reflects, in all material respects, the current salary
and other compensation payable to such employee, such employee's employer, date
of hire and position and the principal office of such employee. None of the
Acquired Corporations is a party to any collective bargaining contract or other
Contract with a labor union involving any of its employees. All of the employees
of the Acquired Corporations are "at will" employees.
16.
(m) Section 2.13(m) of the Company Disclosure Schedule identifies
each employee of any of the Acquired Corporations who is not fully available to
perform work because of disability or other leave and sets forth the basis of
such disability or leave and the anticipated date of such employee's return to
full service.
(n) Each of the Acquired Corporations is in compliance in all
material respects with all applicable Legal Requirements and Material Contracts
relating to employment, employment practices, wages, bonuses and terms and
conditions of employment, including employee compensation matters.
(o) To the knowledge of the Company, as of the date of this
Agreement, no officer or group of employees of any of the Acquired Corporations
intends to terminate his, her or their employment with such Acquired Corporation
as a result of the execution of this Agreement or the consummation of the
transactions contemplated herein.
2.14 LABOR MATTERS. There are no collective bargaining agreements or
other labor union agreements to which the Company is a party or by which it is
bound, and, to the knowledge of the Company, the Company is not the subject of
any proceeding asserting that it has committed an unfair labor practice or
seeking to compel it to bargain with any labor organization as to wages or
conditions. To the Company's knowledge, since January 1, 2001 the Company has
not encountered any labor union organizing activity or had any actual or
threatened employee strikes, work stoppages, slowdowns or lockouts.
2.15 ENVIRONMENTAL MATTERS. The Acquired Corporations are in compliance
with all applicable Environmental Laws, except where the failure to be in such
compliance would not have a Material Adverse Effect on the Acquired
Corporations. Between January 1, 2001 and the date of this Agreement, the
Acquired Corporations have not received any written notice from a Governmental
Entity, that alleges that any of the Acquired Corporations are materially
violating any Environmental Law. To the knowledge of the Acquired Corporations,
no current or prior owner of any property leased or controlled by any Acquired
Corporation has received any written notice from a Governmental Entity between
January 1, 2001 and the date of this Agreement that alleges that such current or
prior owner or any Acquired Corporation is materially violating any
Environmental Law. (For purposes of this Section 2.15, "ENVIRONMENTAL LAW" means
any Legal Requirement relating to pollution or protection of human health or the
environment, including any law regulating emissions, discharges or releases of
chemicals, pollutants, contaminants, wastes, toxic substances, petroleum and
petroleum products or otherwise regulating the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
chemicals, pollutants, contaminants, wastes, toxic substances, petroleum and
petroleum products or any other substance that is inherently dangerous to
health, reproduction or the environment.) All material Governmental
Authorizations currently held by the Company pursuant to Environmental Laws are
identified in Section 2.15 of the Company Disclosure Schedule.
2.16 INSURANCE. Section 2.16 of the Company Disclosure Schedule lists
each material insurance policy and self-insurance program relating to the
business, assets and operations of the Acquired Companies, each of which is in
full force and effect. Between January 1, 2001 and the date of this Agreement,
no Acquired Corporation has received any written communication
17.
regarding any actual or threatened (a) cancellation or invalidation of any
insurance policy held by any Acquired Corporation, (b) refusal of any coverage
or rejection of any material claim under any insurance policy held by any
Acquired Corporation, or (c) material adjustment in the amount of the premiums
payable with respect to any insurance policy held by any Acquired Corporation.
There is no pending material claim by any Acquired Corporation under any
insurance policy held by any Acquired Corporation.
2.17 CERTAIN BUSINESS PRACTICES. To the knowledge of the Company, the
Company has not: (i) used any material funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to political activity; or (ii)
made any material unlawful payment to foreign or domestic government officials
or employees or to foreign or domestic political parties or campaigns or
materially violated any provision of the Foreign Corrupt Practices Act of 1977.
2.18 PRODUCT WARRANTIES. Except as would not have a Material Adverse
Effect on the Company, as of the date of this Agreement there are no claims
pending or, to the knowledge of the Company, being overtly threatened against
any Acquired Corporation with respect to any warranties provided by any Acquired
Corporation with respect to products of any Acquired Corporation.
2.19 AUTHORITY; BINDING NATURE OF AGREEMENT. The Company has the
requisite corporate power and authority to enter into and to perform its
obligations under this Agreement. The Board of Directors of the Company has (a)
determined that the Merger is fair to, and in the best interests of, the Company
and its Stockholders, (b) authorized and approved the execution, delivery and
performance of this Agreement by the Company and approved the Merger and (c)
recommended the approval of this Agreement and the Merger by the holders of
Shares and directed that this Agreement and the Merger be submitted for
consideration by the Company's stockholders at the Company's Stockholders'
Meeting (as defined in Section 4.3). The execution and delivery of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby have been duly and validly authorized by all necessary
corporate action on the part of the Company, and no other corporate proceedings
on the part of the Company are necessary to authorize this Agreement other than,
with respect to the Merger, the adoption of this Agreement by the holders of a
majority of the then outstanding Shares and the filing and recordation of the
appropriate merger documents as required by the DGCL. This Agreement has been
duly and validly executed and delivered on behalf of the Company and, assuming
the due authorization, execution and delivery of this Agreement by Parent and
Acquisition Sub, constitutes the legal, valid and binding obligation of the
Company, enforceable against the Company in accordance with its terms, subject
to (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.
2.20 NON-CONTRAVENTION; CONSENTS. Except as set forth in Section 2.20
of the Company Disclosure Schedule, neither (1) the execution, delivery or
performance of this Agreement or any of the other agreements referred to in this
Agreement, nor (2) the consummation of the Merger or any of the other
transactions contemplated by this Agreement, will (with or without notice or
lapse of time):
18.
(i) contravene, conflict with or result in a violation of (i)
any of the provisions of the certificate of incorporation, bylaws or other
charter or organizational documents of any of the Acquired Corporations, or (ii)
any resolution adopted by the stockholders, the board of directors or any
committee of the board of directors of any of the Acquired Corporations;
(ii) contravene, conflict with or result in a violation of, or
give any Governmental Entity or other Person the right to exercise any remedy or
obtain any relief under, any Legal Requirement or any outstanding order, writ,
injunction, judgment or decree to which any of the Acquired Corporations, or any
of the assets owned or used by any of the Acquired Corporations, is subject;
(iii) contravene, conflict with or result in a violation or
breach of, or result in a default under, any provision of any Material Contract,
or give any Person the right to (i) declare a default or exercise any remedy
under any such Material Contract, (ii) a rebate, chargeback, penalty, or change
in delivery schedule under any such Material Contract, (iii) accelerate the
maturity or performance of any such Material Contract or (iv) cancel, terminate,
or modify any term of any such Material Contract; or
(iv) result in the imposition or creation of any Encumbrance
upon or with respect to any asset owned or used by any of the Acquired
Corporations (except for liens that will not, in any case or in the aggregate,
materially detract from the value of the assets subject thereto or materially
impair the operations of the Acquired Corporations).
Except as may be required by the Securities Act, the Exchange Act, the
DGCL, the HSR Act and the NASD Bylaws, none of the Acquired Corporations was, is
or will be required to make any filing with or give any notice to, or obtain any
Consent from, any Governmental Entity or Person in connection with (x) the
execution, delivery or performance of this Agreement or any of the other
agreements referred to in this Agreement, or (y) the consummation of the Merger
or any of the other transactions contemplated by this Agreement.
2.21 SECTION 203 OF THE DGCL NOT APPLICABLE. The Board of Directors of
the Company has taken or will take all action necessary to render Section 203 of
the DGCL inapplicable to the Merger.
2.22 OPINION OF FINANCIAL ADVISOR. The Company has received the oral
opinion of Xxxxxxxxxx & Partners, Inc. ("XXXXXXXXXX") on the date of this
Agreement to the effect that the Merger Consideration is fair, from a financial
point of view, to the Stockholders.
2.23 BROKERS. No broker, finder or investment banker (other than
Xxxxxxxxxx & Partners, Inc.) is entitled to any brokerage, finder's or other
similar fee or commission in connection with the transactions contemplated by
this Agreement based upon arrangements made by or on behalf of the Company. The
terms of the fee payable to Xxxxxxxxxx & Partners, Inc. are set forth in Section
2.23 of the Company Disclosure Schedule.
2.24 RIGHTS AGREEMENT. The Company has taken all action necessary to
provide that the execution and delivery of this Agreement and the consummation
of the transactions contemplated by this Agreement will not enable or require
the Rights (as such term is defined in
19.
the Rights Agreement) to be exercised or distributed and no Distribution Date
has occurred thereunder.
2.25 LIABILITIES. Except for liabilities reflected or reserved against
in the Company's financial statements or as disclosed in the Company SEC
Documents, none of the Acquired Corporations has any accrued, contingent or
other liabilities of any nature, either matured or unmatured, that would be
required by GAAP to be reflected on a consolidated balance sheet of the Company
and its subsidiaries except for: (a) normal and recurring liabilities that have
been incurred by the Acquired Corporations since June 30, 2001 in the ordinary
course of business and consistent with past practices and that have not had, in
the aggregate, a Material Adverse Effect on the Company and (b) liabilities
described in Section 2.25 of the Company Disclosure Schedule.
2.26 TRANSACTIONS WITH AFFILIATES. Except as set forth in the Company
SEC Reports, since the date of the Company's last proxy statement filed with the
SEC, no event has occurred that would be required to be reported by the Company
pursuant to Item 404 of Regulation S-K promulgated by the SEC. Section 2.26 of
the Company Disclosure Schedule identifies each person who is (or who may be
deemed to be) an "affiliate" (as that term is used in Rule 145 under the
Securities Act) of the Company as of the date of this Agreement.
2.27 VOTE REQUIRED. The affirmative vote of the holders of a majority
of the shares of Company Common Stock outstanding on the record date for the
Company Stockholders' Meeting (the "REQUIRED STOCKHOLDER VOTE") is the only vote
of the holders of any class or series of the Company's capital stock necessary
to approve this Agreement, the Merger and the other transactions contemplated by
this Agreement.
SECTION 3. REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION SUB
Parent and Acquisition Sub hereby jointly and severally represent and
warrant to the Company that:
3.1 DUE ORGANIZATION. Parent and Acquisition Sub are corporations duly
organized, validly existing and in good standing under the laws of the State of
Delaware, and have all requisite corporate power and authority to conduct their
business in the manner in which such business is currently being conducted.
3.2 LEGAL PROCEEDINGS.
(a) There is no Legal Proceeding pending (or, to the knowledge of
Parent, being threatened) against Parent or Acquisition Sub that would
materially and adversely affect Parent's or Acquisition Sub's ability to
consummate any of the transactions contemplated by this Agreement.
(b) There is no order, writ, injunction or judgment to which Parent
or Acquisition Sub is subject that would materially and adversely affect
Parent's or Acquisition Sub's ability to consummate any of the transactions
contemplated by this Agreement.
20.
(c) To Parent's knowledge, as of the date of this Agreement, no
investigation or review by any Governmental Entity with respect to Parent or
Acquisition Sub is pending or threatened, other than any investigation or review
that would not materially and adversely affect Parent's or Acquisition Sub's
ability to consummate any of the transactions contemplated by this Agreement.
3.3 AUTHORITY; BINDING NATURE OF AGREEMENT. Parent has the requisite
corporate power and authority to enter into and to perform its obligations under
this Agreement. The Board of Directors of Parent has (a) determined that the
transactions contemplated by this Agreement are fair and in the best interests
of Parent, and (b) authorized and approved the execution, delivery and
performance of this Agreement by Parent. The execution and delivery of this
Agreement by Parent and the consummation by Parent of the transactions
contemplated by this Agreement have been duly and validly authorized by all
necessary corporate action on the part of Parent, and no other corporate
proceedings on the part of Parent are necessary to authorize this Agreement.
This Agreement has been duly and validly executed and delivered by Parent and,
assuming the due authorization, execution and delivery of this Agreement by the
Company, constitutes the legal, valid and binding obligation of Parent,
enforceable against Parent in accordance with its terms, subject to (i) laws of
general application relating to bankruptcy, insolvency and the relief of
debtors, and (ii) rules of law governing specific performance, injunctive relief
and other equitable remedies. Acquisition Sub is a newly formed, wholly-owned
subsidiary of Parent and has the requisite corporate power and authority to
enter into and to perform its obligations under this Agreement. The Board of
Directors of Acquisition Sub has (a) determined that the transactions
contemplated by this Agreement are fair and in the best interests of Acquisition
Sub, and (b) authorized and approved the execution, delivery and performance of
this Agreement by Acquisition Sub. The execution and delivery of this Agreement
by Acquisition Sub and the consummation by Acquisition Sub of the transactions
contemplated by this Agreement have been duly and validly authorized by all
necessary corporate action on the part of Acquisition Sub, and no other
corporate proceedings on the part of Acquisition Sub are necessary to authorize
this Agreement other than, with respect to the Merger, the filing and
recordation of the appropriate merger documents as required by the DGCL. This
Agreement has been duly and validly executed and delivered by Acquisition Sub
and, assuming the due authorization, execution and delivery of this Agreement by
the Company, constitutes the legal, valid and binding obligation of Acquisition
Sub, enforceable against Acquisition Sub in accordance with its terms, subject
to (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.
3.4 NON-CONTRAVENTION; CONSENTS. Except for violations and defaults
that would not materially and adversely affect Parent's or Acquisition Sub's
ability to consummate any of the transactions contemplated by this Agreement,
the execution and delivery of this Agreement by Parent and Acquisition Sub, and
the consummation of the transactions contemplated by this Agreement, will not:
(a) cause a violation of any of the provisions of the certificate of
incorporation or bylaws of Parent or Acquisition Sub; (b) cause a violation by
Parent or Acquisition Sub of any Legal Requirement applicable to Parent or
Acquisition Sub; or (c) cause a default on the part of Parent or Acquisition Sub
under any contract. Except as may be required by the Exchange Act, the DGCL or
the HSR Act, neither Parent nor Acquisition Sub, nor any of Parent's other
Affiliates, is required to make any filing with or give any notice to, or to
obtain
21.
any consent from, any Person at or prior to the Closing Date in connection with
the execution and delivery of this Agreement by Parent or Acquisition Sub or the
consummation by Parent or Acquisition Sub of any of the transactions
contemplated by this Agreement, except where the failure to make any such
filing, give any such notice or obtain any such consent would not materially and
adversely affect Parent's or Acquisition Sub's ability to consummate any of the
transactions contemplated by this Agreement. No vote of Parent's stockholders is
necessary to approve this Agreement or any of the transactions contemplated by
this Agreement.
3.5 NOT AN INTERESTED STOCKHOLDER. Neither Parent nor any of its
Affiliates is an "interested stockholder" (as such term is defined in Section
203 of Delaware Law) of the Company.
3.6 FINANCING. Parent has delivered to the Company complete and
accurate copies of those fully executed financing commitment letters set forth
in Schedule 3.6 hereto (the financing commitments reflected in such letters is
hereinafter referred to as the "COMMITTED FINANCING"). To the best of Parent's
knowledge, as of the date of this Agreement and subject to the conditions set
forth in the commitment letters set forth in Schedule 3.6 hereto and assuming
the facts and circumstances as of the date hereof, the Committed Financing is in
an amount sufficient to consummate the Merger and will be available at the
Effective Time.
3.7 OWNERSHIP OF SHARES. Neither Parent nor any of Parent's Affiliates
beneficially owns any Shares; PROVIDED, HOWEVER, that the parties hereto
acknowledge and agree that Xxxxx X. Xxxxxxx beneficially owns Shares.
3.8 BROKERS. No broker, finder or investment banker is entitled to any
brokerage, finder's or other similar fee or commission in connection with the
transactions contemplated by this Agreement based upon arrangements made by or
on behalf of Parent or Acquisition Sub.
SECTION 4. COVENANTS
4.1 INTERIM OPERATIONS OF THE COMPANY.
(a) During the period from the date of this Agreement to the
Effective Time (the "PRE-CLOSING PERIOD"): (i) the Company shall ensure that it
and each other Acquired Corporation conducts its business and operations (A) in
the ordinary course and in accordance with past practices and (B) in compliance
with all material Legal Requirements and the requirements of all Material
Contracts; (ii) the Company shall use its reasonable efforts to ensure that it
and each other Acquired Corporation preserves intact its current business
organization, keeps available the services of its current officers and other
employees and maintains its relations and goodwill with all suppliers,
customers, landlords, creditors, licensors, licensees, employees and other
Persons having business relationships with it or its subsidiaries, as the case
may be; (iii) the Company shall use its reasonable efforts to keep in full force
all insurance policies referred to in Section 2.16; and (iv) the Company shall
(to the extent reasonably requested by Parent) cause its officers and the
officers of each other Acquired Corporation to report to Parent concerning the
status of the Company's business.
22.
(b) The Company agrees that, during the Pre-Closing Period, except
to the extent Parent shall otherwise consent in writing, which consent shall not
be unreasonably withheld (except that with respect to Section 4.1(b)(v) below,
Parent shall be entitled to withhold its consent in its sole discretion), the
Company shall not and shall not permit any of its subsidiaries to:
(i) amend its certificate of incorporation or bylaws or other
charter or organizational documents, or effect a stock split,
division, or subdivision of shares, reverse stock split,
consolidation of shares or similar transaction;
(ii) effect or become a party to any merger, consolidation,
amalgamation, share exchange or other business combination
(iii) declare, set aside or pay any dividend (whether payable
in cash, stock or property) or make any other distribution in
respect of any shares of capital stock;
(iv) form any subsidiary or acquire any equity interest in any
other Entity other than acquisitions of franchisees of the Company
pursuant to rights the Company has under agreements existing and
outstanding as of the date of this Agreement;
(v) issue, sell, grant or authorize the issuance or grant of
any capital stock or other security, or any instrument convertible
into or exchangeable for, or options, warrants, calls, commitments
or rights of any kind to acquire, any capital stock or other
securities, other than (i) options to purchase up to 10,000 Shares
granted in the ordinary course of business with an exercise price
equal to the fair market value of the Company's common stock as of
the date of such grant; (ii) Shares issuable upon the valid
exercise of Company Options outstanding on, or granted (pursuant to
Section 4.1(b)(v)(i)) after, the date of this Agreement, (iii)
Shares issuable pursuant to warrants outstanding as of the date of
this Agreement and disclosed on Section 2.3(c) of the Company
Disclosure Schedule and (iv) up to 7,000 Shares issuable pursuant
to the ESPP;
(vi) amend or waive any of its rights under, or alter the
acceleration of the vesting under, any provision of any of the
Company's stock option plans, any provision of any agreement
evidencing any outstanding stock option or any restricted stock
purchase agreement, or otherwise modify any of the terms of any
outstanding option, warrant or other security or any related
Contract;
(vii) transfer, lease or license to any third party, or
encumber, any assets other than (A) in the ordinary course of
business, or (B) as security for any borrowings permitted by
Section 4.1(ix);
(viii) repurchase, redeem or otherwise acquire any shares of
the capital stock or other securities except shares repurchased
from employees or former employees of the Company pursuant to the
exercise of repurchase rights;
23.
(ix) lend money to any Person or incur any indebtedness for
borrowed money or guarantee any indebtedness, except for (A)
short-term borrowings incurred in the ordinary course of business,
and (B) borrowings pursuant to existing credit facilities in the
ordinary course of business;
(x) establish, adopt or materially amend any bonus, profit
sharing, compensation, severance, termination, stock option, stock
appreciation right, restricted stock, pension, retirement, deferred
compensation or other employee benefit agreements or plans for the
benefit of any director, officer or employee, or pay any bonus or
increase the wages, salary, considerations, fringe benefits or
other compensation or remuneration payable to any director, officer
or employee (except for increases in the ordinary course of
business that are consistent with past practices or that, in the
aggregate, do not result in a material increase in benefits or
compensation expense);
(xi) enter into or become bound by, or permit any of the
material assets owned by or used by it to become bound by, any
Material Contract, or amend or prematurely terminate any Material
Contract or exercise, waive, release or assign any material right
or claim under any Material Contract (except in the ordinary course
of business consistent with the Company's past practice or where
the failure to amend or terminate a Material Contract would, in the
reasonable judgment of the Company's Board of Directors, have a
material adverse impact on the Company);
(xii) change any of its methods of accounting or accounting
practices in any material respect except as may be specifically
required by GAAP or the SEC;
(xiii) make any Tax election (except for elections made in the
ordinary course of business consistent with the Company's past
practices);
(xiv) make any capital expenditure which, when added to all
other capital expenditures made by the Acquired Corporations during
the Pre-Closing Period, would exceed $3,500,000 in the aggregate;
(xv) commence or settle any Legal Proceeding for an amount in
excess of $20,000;
(xvi) hire any employee at the level of Vice President or
above, or with an annual base salary in excess of $90,000;
(xvii) acquire, lease or license or sell or otherwise dispose
of any right or any other asset of the Company, or waive or
relinquish any right of the Company, in any such case with a fair
market value in excess of $50,000;
(xviii) enter into any transaction outside the ordinary course
of business that requires by its terms payment by or to the Company
of more than $100,000; or
24.
(xix) enter into an agreement to take any of the actions
described in clauses "(i)" through "(xviii)" of this Section 4.1.
4.2 NO SOLICITATION.
(a) The Company shall not directly or indirectly, and shall not
authorize or permit any Acquired Corporation or any of its or their
representatives directly or indirectly to, (i) solicit, initiate, encourage or
induce the making or submission of any Acquisition Proposal, (ii) furnish any
information regarding the Company or any other Acquired Corporation to any
Person in connection with or in response to an Acquisition Proposal, (iii)
engage in discussions or negotiations with any Person with respect to any
Acquisition Proposal; (iv) approve, endorse or recommend any Acquisition
Proposal or (v) enter into any letter of intent or similar document or any
Contract contemplating or otherwise relating to any Acquisition Proposal;
PROVIDED, HOWEVER, that prior to the adoption and approval of this Agreement by
the Required Stockholder Vote, neither the Company nor any of its agents or
representatives shall be prohibited by this Section 4.2(a) from furnishing
nonpublic information regarding the Company to, or entering into discussions or
negotiations with, or accepting or recommending an Acquisition Proposal from, or
entering into definitive agreements relating to an alternative Acquisition
Proposal with, any Person in response to a Superior Proposal that is submitted
by such Person (and not withdrawn) if (A) neither the Company nor any
representative of any of the Company or any other Acquired Corporation shall
have violated any of the restrictions set forth in Section 4.2(a), (B) the Board
of Directors of the Company concludes in good faith, after consulting with its
outside legal counsel, that the failure to take such action would be reasonably
likely to constitute a breach of the Company's Board of Directors' fiduciary
obligations to the Company's stockholders under applicable law and (C) prior to
or contemporaneously with furnishing any such nonpublic information to such
Person, the Company furnishes such nonpublic information to Parent (to the
extent such nonpublic information has not been previously furnished by the
Company to Parent). The Company will immediately cease and cause to be
terminated any existing discussions or negotiations with any third parties
relating to any Acquisition Proposals.
(b) The Company shall promptly advise Parent orally and in writing
of any Acquisition Proposal (including the material terms thereof) that is made
or submitted by any Person during the Pre-Closing Period.
(c) Subject to the terms and conditions set forth in Section 7
below, nothing contained in this Section 4.2 or elsewhere in this Agreement
shall prohibit the Company or its Board of Directors from complying with Rule
14d-9 or Rule 14e-2 under the Exchange Act, if applicable, or from making any
disclosure to the Company's stockholders which, in the reasonable judgment of
the Company's Board of Directors, is required under applicable law.
4.3 MEETING OF THE COMPANY'S STOCKHOLDERS.
(a) The Company shall use all reasonable efforts to call, give
notice of, convene and hold a meeting of the holders of Shares to consider, act
upon and vote upon the adoption and approval of this Agreement and the approval
of the Merger (the "STOCKHOLDERS' MEETING"). The Stockholders' Meeting will be
held as promptly as reasonably practicable. The Company shall use all reasonable
efforts to ensure that the Stockholders' Meeting is called,
25.
noticed, convened, held and conducted, and that all proxies solicited in
connection with the Stockholders' Meeting are solicited, in compliance with all
applicable Legal Requirements. Parent will furnish to the Company all
information regarding Parent and its Affiliates that may be required (pursuant
to the Exchange Act and other applicable Legal Requirements) to be set forth in
the Company's proxy or information statement with respect to such meeting (the
"PROXY STATEMENT"). The Company will not file the Proxy Statement with the SEC,
and will not amend or supplement the Proxy Statement, without consulting Parent
and its counsel.
(b) Subject to Section 4.3(c): (i) the Board of Directors of the
Company shall recommend that the Company's stockholders vote in favor of and
adopt and approve this Agreement and approve the Merger at the Stockholders'
Meeting; (ii) the Proxy Statement shall include a statement to the effect that
the Board of Directors of the Company has recommended that the Company's
stockholders vote in favor of and adopt and approve this Agreement and approve
the Merger at the Stockholders' Meeting; and (iii) neither the Board of
Directors of the Company nor any committee thereof shall withdraw, amend or
modify, or propose or resolve to withdraw, amend or modify, in a manner adverse
to Parent the recommendation of the Board of Directors of the Company that the
Company's stockholders vote in favor of and adopt and approve this Agreement and
approve the Merger.
(c) Subject to the terms and conditions set forth in Section 7
below, nothing in Section 4.3(b) shall prevent the Board of Directors of the
Company from withdrawing, amending or modifying its recommendation in favor of
the Merger at any time prior to the adoption and approval of this Agreement by
the Required Stockholder Vote if (i) neither the Company nor any of its
representatives shall have violated any of the restrictions set forth in Section
4.2(a) and (ii) the Board of Directors of the Company concludes in good faith,
after consulting with its outside counsel, that the failure to take any such
action would be reasonably likely to constitute a breach of the Company's Board
of Directors' fiduciary obligations to the Company's stockholders under
applicable law. Subject to Section 7.1, nothing contained in this Section 4.3
shall limit the Company's obligation to call, give notice of, convene and hold
the Stockholders' Meeting (regardless of whether the recommendation of the Board
of Directors of the Company shall have been withdrawn, amended or modified).
4.4 FILINGS; OTHER ACTION.
(a) Each of the Company, Parent and Acquisition Sub shall: (i)
promptly make and effect all registrations, filings and submissions required to
be made or effected by it pursuant to the HSR Act, the Exchange Act and other
applicable Legal Requirements with respect to the Merger; and (ii) use
reasonable efforts to cause to be taken, on a timely basis, all other actions
and to execute and deliver such further documents, certificates and instruments
necessary or appropriate or as may reasonably be requested by Parent for the
purpose of consummating, evidencing, reflecting and/or effectuating the
transactions contemplated by, and to carry out the intent and purposes of, this
Agreement. Without limiting the generality of the foregoing, each of the parties
agrees to use its reasonable best efforts to (A) promptly provide all
information requested by any Governmental Entity in connection with the Merger
or any of the other transactions contemplated by this Agreement, (B) promptly
take, and cause its Affiliates to take, all actions and steps necessary to
obtain any antitrust clearance or similar clearance required to be obtained from
the Federal Trade Commission, the Department of Justice, any state
26.
attorney general, any foreign competition authority or any other Governmental
Entity in connection with the transactions contemplated by this Agreement and
(C) seek early termination of the waiting period required under the HSR Act.
(b) Without limiting the generality of anything contained in
Section 4.4(a), each party hereto shall (i) give the other parties prompt notice
of the commencement of any investigation, action or Legal Proceeding by or
before any Governmental Entity with respect to the Merger or any of the other
transactions contemplated by this Agreement, (ii) keep the other parties
informed as to the status of any such investigation, action or Legal Proceeding,
and (iii) promptly inform the other parties of any communication to or from the
Federal Trade Commission, the Department of Justice or any other Governmental
Entity regarding the Merger. Each party hereto will consult and cooperate with
the other parties and will consider in good faith the views of the other parties
in connection with any analysis, appearance, presentation, memorandum, brief,
argument, opinion or proposal made or submitted in connection with any
investigation, action or Legal Proceeding under or relating to the HSR Act or
any other federal or state antitrust, competition or fair trade law. In
addition, except as may be prohibited by any Governmental Entity or by any Legal
Requirement, in connection with any investigation, action or Legal Proceeding
under or relating to the HSR Act or any other federal or state antitrust,
competition or fair trade law or any other similar investigation, action or
Legal Proceeding, each party hereto will permit authorized representatives of
the other parties to be present at each meeting or conference relating to any
such investigation, action or Legal Proceeding and to have access to and be
consulted in connection with any document, opinion or proposal made or submitted
to any Governmental Entity in connection with any such investigation, action or
Legal Proceeding.
4.5 PROXY STATEMENT. Following the date of this Agreement, each of
Parent and the Company shall use its best efforts to prepare and cause to be
filed with the SEC the Proxy Statement. The Company shall cause the Proxy
Statement to comply with the requirements of the Exchange Act and the rules and
regulations thereunder, and to respond promptly to any comments of the SEC or
its staff. The Parent shall use its best efforts to assist the Company in
causing the Proxy Statement to comply with the requirements of the Exchange Act
and the rules and regulations thereunder, in responding promptly to any comments
of the SEC or its staff. The Company will use its reasonable best efforts to
cause the Proxy Statement to be mailed to the Company's stockholders as promptly
as practicable. Each of the Company and Parent shall promptly furnish to the
other all information that may be required or reasonably requested in connection
with any action contemplated by this Section 4.5. If any event occurs, or if
either Parent or the Company becomes aware of any information, that should be
disclosed in an amendment or supplement to the Proxy Statement, then such party
shall promptly inform the other thereof and shall cooperate in filing such
amendment or supplement with the SEC and, if appropriate, in mailing such
amendment or supplement to the stockholders of the Company. Each of the Company
and Parent hereby represent and covenant that none of the information supplied
or to be supplied by it specifically for inclusion or incorporation by reference
in the Proxy Statement will, at the date it is first mailed to the Stockholders
or at the time of the Stockholders' Meeting, contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading, except that no
representation or warranty is made by either such party with respect to
statements made or
27.
incorporated by reference therein based on information supplied by the other
such party specifically for inclusion or incorporation by reference in the Proxy
Statement.
4.6 ACCESS. Upon reasonable notice, the Company shall afford Parent's
officers and other authorized representatives reasonable access, during normal
business hours throughout the period prior to the Effective Time, to the
Company's representatives, personnel, books and records, tax returns, work
papers and other documents and information relating to the Company and, during
such period, the Company shall furnish promptly to Parent all readily available
information concerning its business as Parent may reasonably request; PROVIDED,
HOWEVER, that the Company shall not be required to permit any inspection or to
disclose any information, that in the reasonable judgment of the Company would
(i) result in the disclosure of any trade secrets of third parties, (ii) violate
any obligation of the Company with respect to confidentiality, (iii) jeopardize
protections afforded the Company under the attorney-client privilege or the
attorney work product doctrine or (iv) materially interfere with the conduct of
the Company's business. The Company hereby represents and warrants that the
information, if any, which is subject to the proviso to the immediately
preceding sentence is neither material, individually or in the aggregate, to the
Company or any other Acquired Corporation, nor necessary in order to make any
other information or disclosure provided or made, or to be provided or made, by
the Company or any Acquired Corporation to Parent or Merger Sub (in light of the
circumstances under which such information or disclosure were or will be made or
provided) not false or misleading, and the Company hereby agrees that, to the
extent any such information is withheld pursuant to such proviso, the Company
will provide as much information with respect to the matters withheld as is
permissible consistent with such proviso. All information obtained by Parent and
its representatives pursuant to this Section 4.6 shall be treated as
"Confidential Information" for purposes of the Confidentiality Agreement.
4.7 NOTIFICATION OF CERTAIN MATTERS. During the Pre-Closing Period,
each party hereto shall promptly notify the others in writing of: (i) the
discovery of any event, condition, fact or circumstance that occurred or existed
on or prior to the date of this Agreement and that caused or constitutes a
material inaccuracy in any representation or warranty made by such party in this
Agreement; (ii) any event, condition, fact or circumstance that occurs, arises
or exists after the date of this Agreement and that would cause or constitute a
material inaccuracy in any representation or warranty made by such party in this
Agreement if such event, condition, fact or circumstance had occurred, arisen or
existed on or prior to the date of this Agreement; (iii) any material breach of
any covenant or obligation of such party; and (iv) any event, condition, fact or
circumstance that would make the timely satisfaction of any of the conditions
set forth in Section 5 or Section 6, as applicable, impossible or unlikely or
that has had a Material Adverse Effect. Without limiting the generality of the
foregoing, each party shall promptly advise the other parties in writing of any
Legal Proceeding or material claim threatened, commenced or asserted against or
with respect to it or any of its Subsidiaries. The Company shall promptly notify
Parent if, during the Pre-Closing Period, it becomes aware of any officer or
group of employees of the Acquired Corporations intending to terminate his, her
or their employment with such Acquired Corporation. No notification given
pursuant to this Section 4.7 shall limit or otherwise affect any of the
representations, warranties, covenants or obligations contained in this
Agreement.
28.
4.8 PUBLICITY. The initial press release relating to this Agreement
shall be a joint press release issued by the Company and Parent, and thereafter
the Company and Parent shall consult with each other prior to issuing any press
releases or otherwise making public statements with respect to the transactions
contemplated by this Agreement and prior to making any filings with any
Governmental Entity with respect to the transactions contemplated by this
Agreement; PROVIDED, HOWEVER, that the Company shall not be required to consult
with the Parent prior to making any such filing if doing so would cause the
Company to be in violation of its reporting requirements under applicable law.
4.9 STOCK OPTIONS; EMPLOYEE STOCK PURCHASE PLAN.
(a) Except as is otherwise agreed to in writing by the Company,
Parent and the holder of a Company Option, the Company shall take all action
necessary to ensure that each Company Option outstanding immediately prior to
the Effective Time, whether or not then vested or exercisable, shall be canceled
immediately prior to the Effective Time and shall thereafter represent the right
to receive, at the Effective Time from the Company (or as soon as practicable
thereafter from the Surviving Corporation) in consideration for such
cancellation, an amount in cash (less all applicable withholding taxes) equal to
the product of (A) the total number of Shares (whether or not then vested or
exercisable) previously subject to such Company Option, MULTIPLIED BY (B) the
amount by which the Merger Consideration exceeds the exercise price per share of
Shares previously subject to such Company Option. Promptly following the
execution of this Agreement, the Company shall mail to each person who is a
holder of outstanding Company Options (regardless of whether such Company
Options are vested or exercisable at the time) a letter describing the treatment
of and payment for such Company Options pursuant to this Section 4.9(a) and
providing instructions for use in obtaining payment for such Company Options.
(b) As of the Effective Time, the ESPP shall be terminated. Prior
to the Effective Time, the Company shall take all actions (including, if
appropriate, amending the terms of the ESPP) that are necessary to give effect
to the transactions contemplated by this Section 4.9(b)). Except as contemplated
in this Section 4.9(b), the Company shall not commence any new offering period
or grant or change any rights under the ESPP other than the offering period
currently underway.
4.10 OTHER EMPLOYEE BENEFITS.
(a) For a period of two years following the Effective Time, Parent
shall or shall cause the Surviving Corporation to maintain in effect employee
benefit plans and arrangements for employees of the Surviving Corporation (to
the extent that such plans and arrangements have heretofore been disclosed to
Parent) which, taken as a whole, provide a level of benefits which is equal to
or greater than the level of the benefits, taken as a whole, provided by the
Company's Plans prior to the date of this Agreement.
(b) Parent shall ensure that employees of the Company as of the
Effective Time receive credit (for all purposes including eligibility to
participate, vesting, vacation entitlement and severance benefits) for service
with the Company or the Company's subsidiaries (to the same extent such service
credit was granted under the Company's Plans) under the
29.
comparable employee benefit plans, programs and policies of Parent and the
Surviving Corporation in which such employees became participants.
(c) Parent shall cause the Surviving Corporation to assume and
honor in accordance with their terms all written employment, severance,
retention and termination agreements (including any change in control provisions
therein) applicable to employees of the Company, to the extent set forth in
Section 2.13(a) of the Company Disclosure Schedule.
4.11 INDEMNIFICATION; DIRECTORS' AND OFFICERS' INSURANCE.
(a) From and after the Effective Time, Parent will cause the
Surviving Corporation to fulfill and honor in all respects the obligations of
the Company pursuant to (i) each indemnification agreement now or hereafter in
effect between the Company and any Indemnified Party (as defined in Section
4.11(e)), (ii) any indemnification provision related to the indemnification of
any officer or director of an Acquired Corporation under any Contract (to the
extent that such Contract(s) have heretofore been disclosed to Parent), and
(iii) any indemnification provision and any exculpation provision set forth in
the Company's certificate of incorporation or bylaws as in effect on the date
hereof. The certificate of incorporation and bylaws of the Surviving Corporation
shall contain the provisions with respect to indemnification and exculpation
from liability set forth in the Company's certificate of incorporation and
bylaws on the date of this Agreement, and, during the period commencing as of
the Effective Time and ending on the sixth anniversary of the Effective Time,
such provisions shall not be amended, repealed or otherwise modified in any
manner that would adversely affect the rights thereunder of any Indemnified
Party.
(b) From the Effective Time through the sixth anniversary thereof,
Parent shall maintain in effect, for the benefit of the Indemnified Parties, the
current level and scope of directors' and officers' liability insurance coverage
as set forth in the Company's current directors' and officers' liability
insurance policy in effect as of the date of this Agreement (a copy of which has
been delivered to Parent); PROVIDED, HOWEVER, that in no event shall Parent be
required to expend in any one year an amount in excess of 200% of the annual
premium currently payable by the Company with respect to such current policy, it
being understood that if the annual premiums payable for such insurance coverage
exceed such amount, Parent shall be obligated to obtain a policy with the
greatest coverage available for a cost equal to such amount.
(c) Parent and the Surviving Corporation jointly and severally
agree to pay all expenses, including attorneys' fees, that may be incurred by
the Indemnified Parties in enforcing their indemnity rights and other rights
provided in this Section 4.11.
(d) This Section 4.11 shall survive consummation of the Merger and
the Effective Time. This Section 4.11 is intended to benefit, and may be
enforced by, the Indemnified Parties and their respective heirs and
representatives, and shall be binding on all successors and assigns of Parent
and the Surviving Corporation.
(e) For purposes of this Agreement, each Person who is or was an
officer or director of the Company at, or at any time prior to, the Effective
Time shall be deemed to be an "INDEMNIFIED PARTY."
30.
4.12 ASSUMPTION OF TRUST PREFERRED LIABILITIES. As of the Effective
Time, the Surviving Corporation shall assume, and the Surviving Corporation
agrees to perform, fulfill and discharge, all of the accrued and/or outstanding
liabilities and obligations of the Company, including, without limitation, the
satisfaction of all liabilities under the terms of the Amended and Restated
Trust Agreement relating to American Coin Merchandising Trust I by and among the
Company, Wilmington Trust Company, the Administrative Trustees named therein and
the holders, from time to time, of the trust securities (the "TRUST") and all
amounts owed pursuant to the terms of the Trust to the holders of the Ascending
Rate Cumulative Trust Preferred Securities issued by the Trust.
4.13 SECTION 16 MATTERS. Prior to the Effective Time, Parent and the
Company shall take all such steps as may be required to cause any dispositions
of Shares (including derivative securities with respect to the Shares) resulting
from the transactions contemplated by this Agreement by each individual who is
subject to the reporting requirements of Section 16(a) of the Exchange Act with
respect to the Company to be exempt under Rule 16b-3 promulgated under the
Exchange Act, including by taking steps in accordance with the No-Action Letter,
dated January 12, 1999, issued by the SEC regarding such matters.
4.14 RESIGNATION OF DIRECTORS. The Company shall use all reasonable
efforts to obtain and deliver to Parent on or prior to the Closing the
resignation of each director of the Company, except as set forth in Schedule
4.14 hereto.
4.15 CHANGE IN FINANCING. Parent shall as promptly as practicable, but
in any event within five business days, notify the Company in writing if it
receives written notice from a provider of Committed Financing that any part of
the Committed Financing previously committed or provided (without regard to any
contingencies or conditions thereon) by such Person has been, or may become,
unavailable, withdrawn, revoked or reduced for any reason. Upon the occurrence
of any such event, Parent shall have until the earlier of (A) sixty (60) days
from the date of the delivery of such notice to Parent and (B) March 28, 2002 to
secure alternative financing in an amount equal to the amount of Committed
Financing so withdrawn, revoked, reduced or made unavailable ("ALTERNATIVE
FINANCING") and to provide to the Company written evidence thereof (which shall
be in a form reasonably acceptable to the Company (it being understood that
written evidence that Parent has secured Alternative Financing pursuant to
clauses (i) or (ii) of the following sentence shall be deemed reasonably
acceptable to the Company)). Parent shall be entitled to secure Alternative
Financing from (i) additional equity of the Parent or any of Parent's
Affiliates, (ii) alternative debt financing subject to conditions substantially
similar to, and no broader than, the conditions contained in the commitment
letters referenced in Schedule 3.6, (iii) any other source reasonably acceptable
to the Company or (iv) any combination of the foregoing.
4.16 DELIVERY OF FAIRNESS OPINION. As promptly as practicable following
the date of this Agreement, the Company shall cause Xxxxxxxxxx to deliver to
Parent a copy of the written opinion of Xxxxxxxxxx (a form of which has been
previously delivered to Parent) to the effect that the Merger Consideration is
fair, from a financial point of view, to the Stockholders.
31.
SECTION 5 . CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND ACQUISITION SUB TO
EFFECT THE MERGER
The obligation of Parent and Acquisition Sub to effect the Merger and
purchase the Shares shall be subject to the satisfaction or waiver of the
following conditions prior to the Closing:
5.1 ACCURACY OF REPRESENTATIONS.
(a) The representations and warranties of the Company contained in
this Agreement shall have been accurate in all material respects as of the date
of this Agreement (it being understood that, for purposes of determining the
accuracy of such representations and warranties, (i) all "Material Adverse
Effect" qualifications and other materiality qualifications contained in such
representations and warranties shall be disregarded and (ii) any update of or
modification to the Company Disclosure Schedule made or purported to have been
made after the date of this Agreement shall be disregarded); PROVIDED, HOWEVER,
that for purposes of this Section 5.1(a), representations and warranties made as
of a specific date shall have been accurate in all material respects as of such
date.
(b) The representations and warranties of the Company contained in
this Agreement shall be accurate in all respects as of the Closing Date as if
made on and as of the Closing Date, except that any inaccuracies in such
representations and warranties will be disregarded if the circumstances giving
rise to all such inaccuracies (considered collectively) do not constitute, and
could not reasonably be expected to have, a Material Adverse Effect on the
Acquired Corporations; PROVIDED, HOWEVER, that, for purposes of determining the
accuracy of such representations and warranties, (i) all "Material Adverse
Effect" qualifications and other materiality qualifications contained in such
representations and warranties shall be disregarded, (ii) any update of or
modification to the Company Disclosure Schedule made or purported to have been
made after the date of this Agreement shall be disregarded and (iii)
representations and warranties made as of a specific date shall have been
accurate in all material respects as of such date only.
5.2 PERFORMANCE OF COVENANTS. Each covenant or obligation that the
Company is required to comply with or to perform at or prior to the Closing
shall have been complied with and performed in all material respects.
5.3 STOCKHOLDER APPROVAL. This Agreement shall have been duly adopted
and approved, and the Merger shall have been duly approved by the Required
Stockholder Vote, and the holders of not more than 7.5% of the Shares shall have
properly demanded appraisal of such Shares pursuant to Section 262 of the DGCL.
5.4 CONSENTS. The Company shall have obtained all material Consents
required to be obtained by the Company in connection with the Merger as set
forth on Schedule 5.4.
32.
5.5 COMPLIANCE CERTIFICATE. Parent shall have received a certificate
executed on behalf of the Company by its Chief Executive Officer confirming that
the conditions set forth in Sections 5.1, 5.2 and 5.4 have been duly satisfied.
5.6 NO MATERIAL ADVERSE EFFECT. Since the date of this Agreement, there
shall have been no change with respect to the Company and no events have
occurred since the date of this Agreement, that has had a Material Adverse
Effect with respect to the Company.
5.7 HSR ACT. If applicable, the waiting period applicable to the
consummation of the Merger under the HSR Act shall have expired or been
terminated.
5.8 NO RESTRAINTS. No temporary restraining order, preliminary or
permanent injunction or other order preventing the consummation of the Merger
shall have been issued by any court of competent jurisdiction and remain in
effect, and there shall not be any Legal Requirement enacted or deemed
applicable to the Merger that makes consummation of the Merger illegal.
5.9 NO GOVERNMENTAL LITIGATION. There shall not be pending any Legal
Proceeding in which a Governmental Entity has become a party that seeks to
restrain or prohibit the consummation of the Merger; PROVIDED, HOWEVER, that
prior to invoking this provision, Parent shall use its reasonable efforts to
have such Legal Proceeding terminated and/or any injunction or restraint lifted.
5.10 NO OTHER LITIGATION. There shall not be pending any other Legal
Proceeding that challenges or seeks to restrain or prohibit the consummation of
the Merger; PROVIDED, HOWEVER, that prior to invoking this provision, Parent
shall use its reasonable best efforts to have such Legal Proceeding terminated
and/or to have any injunction or restraints lifted.
SECTION 6. CONDITIONS TO THE COMPANY'S OBLIGATION TO EFFECT THE MERGER
The obligation of the Company to effect the Merger shall be subject to
the satisfaction or waiver of the following conditions prior to the Closing:
6.1 STOCKHOLDER APPROVAL. This Agreement and the Merger shall have been
approved by the Required Stockholder Vote.
6.2 NO INJUNCTIONS; LAWS. No injunction shall have been issued by a
court of competent jurisdiction and shall be continuing, and no law shall have
been enacted since the date of this Agreement and shall remain in effect, that
prohibits the consummation of the Merger; PROVIDED, HOWEVER, that prior to
invoking this provision, the Company shall use its reasonable efforts to have
any such injunction lifted.
6.3 ACCURACY OF REPRESENTATIONS.
(a) The representations and warranties of Parent and Acquisition
Sub contained in this Agreement shall have been accurate in all material
respects as of the date of this Agreement (it being understood that, for
purposes of determining the accuracy of such
33.
representations and warranties, all "Material Adverse Effect" qualifications and
other materiality qualifications contained in such representations and
warranties shall be disregarded); PROVIDED, HOWEVER, that for purposes of this
Section 6.3(a), representations and warranties made as of a specific date shall
have been accurate in all material respects as of such date.
(b) The representations and warranties of the Parent and
Acquisition Sub contained in this Agreement shall be accurate in all respects as
of the Closing Date as if made on and as of the Closing Date, except that any
inaccuracies in such representations and warranties will be disregarded if the
circumstances giving rise to all such inaccuracies (considered collectively) do
not constitute, and could not reasonably be expected to have, a Material Adverse
Effect on Parent and Acquisition Sub; PROVIDED, HOWEVER, that, for purposes of
determining the accuracy of such representations and warranties, (i) all
"Material Adverse Effect" qualifications and other materiality qualifications
contained in such representations and warranties shall be disregarded, and (ii)
representations and warranties made as of a specific date shall have been
accurate in all material respects as of such date only.
6.4 PERFORMANCE OF COVENANTS. Each covenant or obligation that the
Parent or Acquisition Sub is required to comply with or to perform at or prior
to the Closing shall have been complied with and performed in all respects,
except where the failure to so perform has not resulted in a Material Adverse
Effect with respect to Parent or Acquisition Sub.
6.5 DOCUMENTS. The Company shall have received a certificate executed
on behalf of Parent by an executive officer of Parent confirming that conditions
set forth in Sections 6.3 and 6.4 have been duly satisfied.
6.6 HSR ACT. If applicable, the waiting period applicable to the
consummation of the Merger under the HSR Act shall have expired or been
terminated.
6.7 NO RESTRAINTS. No temporary restraining order, preliminary or
permanent injunction or other order preventing the consummation of the Merger
shall have been issued by any court of competent jurisdiction and remain in
effect, and there shall not be any Legal Requirement enacted or deemed
applicable to the Merger that makes consummation of the Merger illegal.
6.8 NO GOVERNMENTAL LITIGATION. There shall not be pending any Legal
Proceeding in which a Governmental Entity has become a party that seeks to
restrain or prohibit the consummation of the Merger; PROVIDED, HOWEVER, that
prior to invoking this provision, Company shall use its reasonable best efforts
to have such Legal Proceeding terminated and/or to have any injunction or
restraints lifted.
6.9 NO OTHER LITIGATION. There shall not be pending any other Legal
Proceeding that challenges or seeks to restrain or prohibit the consummation of
the Merger or any of the other transactions contemplated by this Agreement;
PROVIDED, HOWEVER, that prior to invoking this provision, Company shall use its
reasonable best efforts to have such Legal Proceeding terminated and/or to have
any injunction or restraints lifted.
34.
SECTION 7. TERMINATION
7.1 TERMINATION. This Agreement may be terminated and the Merger may be
abandoned (notwithstanding any approval of the Merger by the Stockholders of the
Company):
(a) by mutual written consent of the Boards of Directors of the
Company and Parent at any time prior to the Effective Time;
(b) by Parent or the Company if the Merger shall not have been
consummated by March 29, 2002 (provided that the right to terminate
this Agreement pursuant to this Section 7.1(b) shall not be available
to any party whose failure to fulfill any obligation under this
Agreement has resulted in the failure to consummate the Merger on or
before March 29, 2002);
(c) by Parent or the Company at any time prior to the Effective
Time if there shall be enacted after the date hereof any law that makes
consummation of the Merger illegal, or any court of competent
jurisdiction shall have issued a final and non-appealable permanent
injunction prohibiting the Merger;
(d) by Parent if (i) any of the Company's representations and
warranties contained in this Agreement shall be inaccurate as of the
date of this Agreement, or shall have become inaccurate as of a date
subsequent to the date of this Agreement (as if made on such subsequent
date), such that the condition set forth in Section 5.1 would not be
satisfied or (ii) any of the Company's covenants contained in this
Agreement shall have been breached such that the condition set forth in
Section 5.2 would not be satisfied; PROVIDED, HOWEVER, that if an
inaccuracy in any of the Company's representations and warranties as of
a date subsequent to the date of this Agreement or a breach of a
covenant by the Company is curable by the Company, and the Company is
continuing to exercise all reasonable efforts to cure such inaccuracy
or breach, then Parent may not terminate this Agreement under this
Section 7.1(d) on account of such inaccuracy or breach until March 28,
2002;
(e) by the Company if (i) any of Parent's representations and
warranties contained in this Agreement shall be inaccurate as of the
date of this Agreement, or shall have become inaccurate as of a date
subsequent to the date of this Agreement (as if made on such subsequent
date), such that the condition set forth in Section 6.3 would not be
satisfied or (ii) if any of Parent's covenants contained in this
Agreement shall have been breached such that the condition set forth in
Section 6.4 would not be satisfied; PROVIDED, HOWEVER, that if an
inaccuracy in any of Parent's representations and warranties as of a
date subsequent to the date of this Agreement or a breach of a covenant
(other than the covenants contained in Section 4.15) by Parent is
curable by Parent, and Parent is continuing to exercise all reasonable
efforts to cure such inaccuracy or breach, then the Company may not
terminate this Agreement under this Section 7.1(e) on account of such
inaccuracy or breach until March 28, 2002; PROVIDED, FURTHER, that with
respect to the covenants contained in Section 4.15, the Company shall
have the right to terminate this Agreement under this Section 7.1(e) if
Parent shall have failed to secure Alternative
35.
Financing and to meet the other conditions required to be met
thereunder within the cure time periods set forth therein;
(f) by the Company if (i) the Stockholders Meeting shall have been
held and (ii) this Agreement and the Merger shall not have been
approved at such meeting by the Required Stockholder Vote;
(g) by Parent if (i) the Stockholders Meeting shall have been held,
and (ii) either (x) this Agreement and the Merger shall not have been
approved at such meeting by the Required Stockholder Vote, or (y)
holders of greater than 7.5% of the Shares shall have properly demanded
appraisal of such Shares pursuant to Section 262 of the DGCL; or
(h) by the Company or Parent if the Company's Board of Directors,
in the exercise of its fiduciary duties, withdraws, amends or modifies
its recommendation of the Merger in accordance with Section 4.3(c) or
otherwise or accepts or recommends an alternative Acquisition Proposal
in accordance with Section 4.2(a) or Section 4.2(c) or otherwise.
7.2 EFFECT OF TERMINATION. In the event of the termination of this
Agreement as provided in Section 7.1, this Agreement shall be of no further
force or effect; PROVIDED, HOWEVER, that (i) this Section 7.2, Section 7.3 and
Section 8 and the terms and conditions set forth in the Confidentiality
Agreement shall survive the termination of this Agreement and shall remain in
full force and effect, and (ii) the termination of this Agreement shall not
relieve any party from any liability for any breach of any representation,
warranty or covenant contained in this Agreement which results in such
termination or any obligations under the Confidentiality Agreement; PROVIDED,
HOWEVER, that, except for fees payable by the Company pursuant to Section
7.3(b), if any, the aggregate liability of the Acquired Corporations for all
breaches of any and all representations, warranties or covenants contained in
this Agreement (including, without limitation, damages related to the
termination of this Agreement due to any such breach) shall be limited to an
obligation to reimburse Parent in an amount equal to its and Acquisition Sub's
actual and reasonable, documented, third party, out of pocket fees and expenses
(including all attorneys' fees, accountants' fees, financial advisory fees and
filing fees) that have been paid or that may become payable by or on behalf of
Parent or Acquisition Sub in connection with the preparation and negotiation of
this Agreement and otherwise in connection with the transactions contemplated by
this Agreement, provided that in no event shall the amount of such reimbursement
exceed $1,250,000 (the "REIMBURSEMENT FEE").
7.3 TERMINATION FEE.
(a) If this Agreement is terminated pursuant to Section 7.1(f),
Section 7.1(g) or Section 7.1(h) and, in any such case, neither Parent nor
Acquisition Sub shall have materially breached this Agreement, then, within five
business days after the termination of this Agreement, the Company shall pay to
Parent the Reimbursement Fee; PROVIDED, HOWEVER, that in no event shall Parent
or Acquisition Sub be entitled to receive payment of the Reimbursement Fee under
both Section 7.2 and Section 7.3(a).
36.
(b) If (i) this Agreement is terminated pursuant to Section 7.1(d),
Section 7.1(f), Section 7.1(g) or Section 7.1(h), (ii) the Company shall have
received a Superior Proposal prior to such termination and (iii) within nine
months of such termination the Company consummates an Acquisition Transaction
with a party other than Parent, Acquisition Sub or an affiliate of Parent or
Acquisition Sub, then, within five business days after the consummation of such
Acquisition Transaction, the Company shall pay to Parent a fee in the amount of
$1,150,000. The Company's obligation to pay the fee set forth in this Section
7.3(b), if applicable, shall be in addition to, and not exclusive of, any
obligation the Company may have to pay the amounts set forth in Section 7.2 or
Section 7.3(a).
SECTION 8. MISCELLANEOUS PROVISIONS
8.1 AMENDMENT. This Agreement may be amended with the approval of the
respective Boards of Directors of the Company and Parent at any time prior to
the Effective Time (whether before or after the approval of this Agreement and
the Merger by the Company's stockholders); PROVIDED, HOWEVER, that after any
approval of the Merger by the Company's Stockholders, no amendment shall be made
which by law requires further approval of the Stockholders of the Company
without the further approval of such Stockholders. This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the
parties hereto.
8.2 WAIVER.
(a) No failure on the part of any party to exercise any power,
right, privilege or remedy under this Agreement, and no delay on the part of any
party in exercising any power, right, privilege or remedy under this Agreement,
shall operate as a waiver of such power, right, privilege or remedy; and no
single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right,
privilege or remedy.
(b) No party shall be deemed to have waived any claim arising out
of this Agreement, or any power, right, privilege or remedy under this
Agreement, unless the waiver of such claim, power, right, privilege or remedy is
expressly set forth in a written instrument duly executed and delivered on
behalf of such party; and any such waiver shall not be applicable or have any
effect except in the specific instance in which it is given.
8.3 NO SURVIVAL OF REPRESENTATIONS AND WARRANTIES. None of the
representations and warranties contained in this Agreement or in any certificate
delivered pursuant to this Agreement shall survive the consummation of the
Merger.
8.4 ENTIRE AGREEMENT; COUNTERPARTS. This Agreement, the other
agreements referred to herein and the Confidentiality Agreement constitute the
entire agreement and supersede all prior agreements and understandings, both
written and oral, among or between any of the parties with respect to the
subject matter hereof and thereof. This Agreement may be executed in several
counterparts, each of which shall be deemed an original and all of which shall
constitute one and the same instrument.
37.
8.5 APPLICABLE LAW; JURISDICTION. This agreement is made under, and
shall be construed and enforced in accordance with, the laws of the State of
Delaware applicable to agreements made and to be performed solely therein,
without giving effect to principles of conflicts of law. In any action among or
between any of the parties arising out of or relating to this Agreement, each of
the parties irrevocably and unconditionally consents and submits to the
exclusive jurisdiction and venue of the state and federal courts located in the
State of
Colorado.
8.6 ATTORNEYS' FEES. In any action at law or suit in equity to enforce
this Agreement or the rights of any of the parties hereunder, the prevailing
party in such action or suit shall be entitled to receive a reasonable sum for
its attorneys' fees and all other reasonable costs and expenses incurred in such
action or suit.
8.7 PAYMENT OF EXPENSES. All fees and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring such fees and expenses whether or not the Merger is
consummated, except that Company shall pay all filing fees required to be paid
under the HSR Act.
8.8 BINDING EFFECT; ASSIGNABILITY. This Agreement shall be binding
upon, and shall be enforceable by and inure to the benefit of, the parties
hereto and their respective successors and assigns; PROVIDED, HOWEVER, that
neither this Agreement nor any rights or obligations of a party hereunder may be
assigned by such party without the prior written consent of the other parties,
and any attempted assignment of this Agreement or any of such rights or
obligations without such consent shall be void and of no effect. Except as set
forth in Section 4.11 with respect to the Indemnified Parties, nothing in this
Agreement, express or implied, is intended to or shall confer upon any Person,
other than the parties hereto, any right, benefit or remedy of any nature.
8.9 NOTICES. Any notice or other communication required or permitted to
be delivered to any party under this Agreement shall be in writing and shall be
deemed properly delivered, given and received (x) when delivered by hand or (y)
two (2) business days after being sent by registered mail, by courier or express
delivery service or by facsimile to the address or facsimile telephone number
set forth beneath the name of such party below (or to such other address or
facsimile telephone number as such party shall have specified in a written
notice given to the other parties hereto):
IF TO PARENT OR ACQUISITION SUB:
c/o Wellspring Capital Management LLC
000 Xxxxx Xxxxxx, Xxxxx 000
Xxx Xxxx, XX 00000-0000
Facsimile: (000) 000-0000
Attention: Xxxxxxx X. Xxxxxx, Xx.
38.
WITH A COPY TO: Xxxxxxxx Xxxxx Singer & Xxxxxxxxx, LLP
000 Xxxxxxxxx Xxx.
Xxx Xxxx, Xxx Xxxx 00000
Facsimile: (000) 000-0000
Attention: Xxxxx X. Xxxxxx, Esq.
IF TO THE COMPANY: American Coin Merchandising, Inc.
0000 Xxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxxx 00000
Facsimile: (000) 000-0000
Attention: Chief Executive Officer
WITH A COPY TO: Xxxxxx Godward LLP
000 Xxxxxxxxxxx Xxxxxxxx, Xxxxx 000
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Facsimile: (000) 000-0000
Attention: Xxxxx X. Xxxxxxx, Esq.
8.10 SEVERABILITY. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any Legal Requirement or
public policy, all other terms and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon any judicial determination that any term
or other provision of this Agreement is invalid, illegal or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner in order that the transactions contemplated
hereby are consummated as originally contemplated to the greatest extent
possible. Any provision of this Agreement held invalid or unenforceable only in
part, degree or certain jurisdictions will remain in full force and effect to
the extent not held invalid or unenforceable. To the extent permitted by
applicable law, each party waives any provision of law which renders any
provision of this Agreement invalid, illegal or unenforceable in any respect.
8.11 REMEDIES CUMULATIVE; SPECIFIC PERFORMANCE. The rights and remedies
of the parties hereto shall be cumulative (and not alternative). The parties
hereby agree that in the event of any breach or threatened breach of any
covenant, obligation or other provision set forth in this Agreement for the
benefit of the other party, such other party shall be entitled (in addition to
any other remedy that may be available to it) to (a) a decree or order of
specific performance or mandamus to enforce the observance and performance of
such covenant, obligation or other provision, and (b) an injunction restraining
such breach or threatened breach.
8.12 OBLIGATION OF PARENT. Parent shall ensure that each of Acquisition
Sub and the Surviving Corporation duly performs, satisfies and discharges on a
timely basis each of the covenants, obligations and liabilities of Acquisition
Sub and the Surviving Corporation under this Agreement, and Parent shall be
jointly and severally liable with Acquisition Sub and the Surviving Corporation
for the due and timely performance and satisfaction of each of said covenants,
obligations and liabilities. No stockholder of Parent shall be liable for any
obligation of Parent or Acquisition Sub hereunder.
39.
8.13 CONSTRUCTION.
(a) For purposes of this Agreement, whenever the context requires:
the singular number shall include the plural, and vice versa; the masculine
gender shall include the feminine and neuter genders; the feminine gender shall
include the masculine and neuter genders; and the neuter gender shall include
masculine and feminine genders.
(b) The parties hereto agree that any rule of construction to the
effect that ambiguities are to be resolved against the drafting party shall not
be applied in the construction or interpretation of this Agreement.
(c) As used in this Agreement, the words "include" and
"including," and variations thereof, shall not be deemed to be terms of
limitation, but rather shall be deemed to be followed by the words "without
limitation."
(d) Except as otherwise indicated, all references in this
Agreement to "Sections," "Exhibits," "Annexes" and "Schedules" are intended to
refer to Sections of this Agreement and Exhibits, Annexes and Schedules to this
Agreement.
40.
The Company, Parent and Acquisition Sub have caused this Agreement and
Plan of Merger to be executed as of the date first written above.
CRANE MERGERCO HOLDINGS, INC.
a Delaware corporation
By: /s/ Xxxxxxx X. Xxxxxx, Xx.
-------------------------------
Name: Xxxxxxx X. Xxxxxx, Xx.
Title: President
CRANE MERGERCO INC.
a Delaware corporation
By: /s/ Xxxxxxx X. Xxxxxx, Xx.
-------------------------------
Name: Xxxxxxx X. Xxxxxx, Xx.
Title: President
AMERICAN COIN MERCHANDISING, INC.
a Delaware corporation
By: /s/ Xxxxxxx X. Xxxxxxx
-------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: President and Chief
Executive Officer
41.
EXHIBIT A
CERTAIN DEFINITIONS
For purposes of the Agreement (including this Exhibit A):
ACQUIRED CORPORATION CONTRACT. "Acquired Corporation Contract" shall
mean any Contract: (a) to which any of the Acquired Corporations is a party; (b)
by which any of the Acquired Corporations or any material asset of any of the
Acquired Corporations is or may become bound or under which any of the Acquired
Corporations has, or may become subject to, any obligation; or (c) under which
any of the Acquired Corporations has or may acquire any material right or
interest.
ACQUIRED CORPORATION PROPRIETARY ASSET. "Acquired Corporation
Proprietary Asset" shall mean any Proprietary Asset owned by or licensed to any
of the Acquired Corporations or otherwise used by any of the Acquired
Corporations,
ACQUISITION PROPOSAL. "Acquisition Proposal" shall mean any offer or
proposal (other than an offer or proposal by Parent) contemplating or otherwise
relating to any Acquisition Transaction.
ACQUISITION TRANSACTION. "Acquisition Transaction" shall mean any
transaction or series of transactions involving:
(a) any merger, consolidation, amalgamation, share exchange,
business combination, issuance of securities, acquisition of securities, tender
offer, exchange offer or other similar transaction (i) in which any of the
Acquired Corporations is a constituent company, (ii) in which a Person or
"group" (as defined in the Exchange Act and the rules promulgated thereunder) of
Persons directly or indirectly acquires the Company or more than 50% of the
Company's business or directly or indirectly acquires beneficial or record
ownership of securities representing, or exchangeable for or convertible into,
more than 50% of the outstanding securities of any class of voting securities of
any of the Acquired Corporations, or (iii) in which any of the Acquired
Corporations issues securities representing more than 50% of the outstanding
securities of any class of voting securities of the Company;
(b) any sale, lease, exchange, transfer, license, acquisition or
disposition of more than 50% of the assets of the Company; or
(c) any liquidation or dissolution of the Company.
AFFILIATE. A Person shall be deemed to be an "Affiliate" of another
Person if such Person controls, is controlled by or is under common control with
such other Person.
AGREEMENT. "Agreement" shall mean the Agreement and Plan of Merger to
which this Exhibit A is attached, together with this Exhibit A, as such
Agreement and Plan of Merger (including this Exhibit A) may be amended from time
to time.
A-1
CODE. "Code" shall mean the Internal Revenue Code of 1986, as amended.
COMPANY STOCK OPTION PLANS. "Company Stock Option Plans" shall mean the
Company's (a) Amended and Restated Stock Option Plan and (b) 1995 Non-Employee
Director Stock Option Plan.
CONTRACT. "Contract" shall mean any binding written or oral agreement,
contract, subcontract, lease, instrument, note, option, warranty, purchase
order, license, sublicense, insurance policy, benefit plan or other legally
binding commitment, undertaking or agreement of any nature.
ENCUMBRANCE. "Encumbrance" shall mean any lien, pledge, hypothecation,
charge, mortgage, security interest, encumbrance, claim, infringement,
interference, option, right of first refusal, preemptive right, community
property interest or restriction of any nature (including any restriction on the
voting of any security, any restriction on the transfer of any security or other
asset, any restriction on the receipt of any income derived from any asset, any
restriction on the use of any asset and any restriction on the possession,
exercise or transfer of any other attribute of ownership of any asset).
ENTITY. "Entity" shall mean any corporation (including any non-profit
corporation), general partnership, limited partnership, limited liability
partnership, joint venture, estate, trust, company (including any company
limited by shares, limited liability company or joint stock company), firm,
society or other enterprise, association, organization or entity (including any
Governmental Entity).
ESPP. "ESPP" shall mean the Company's Employee Stock Purchase Plan.
EXCHANGE ACT. "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.
GAAP. "GAAP" shall mean United States generally accepted accounting
principles, as in effect as of the relevant date.
GOVERNMENTAL AUTHORIZATION. "Governmental Authorization" shall mean any
permit, license, certificate, franchise, permission, variance, clearance,
registration, qualification or authorization granted, given or otherwise made
available by or under the authority of any Governmental Entity.
GOVERNMENTAL ENTITY. "Governmental Entity" shall mean any federal,
state, local municipal or other governmental department, commission, board,
bureau, authority, court, agency or instrumentality, domestic or foreign.
HSR ACT. "HSR Act" shall mean the Xxxx-Xxxxx-Xxxxxx Antitrust
Improvements Act of 1976, as amended.
KNOWLEDGE. "knowledge" and similar words and phrases such as "to the
best of [person's] knowledge," shall mean, with respect to such person or
entity, the actual knowledge
A-2
of such person after due inquiry or, with respect to an entity, the actual
knowledge of the executive officers and directors of such entity after due
inquiry.
LEGAL PROCEEDING. "Legal Proceeding" shall mean any action, suit,
litigation, arbitration, proceeding (including any civil, criminal,
administrative, investigative or appellate proceeding), hearing, inquiry, audit,
examination or investigation commenced, brought, conducted or heard by or
before, or otherwise involving, any court or other Governmental Entity or any
arbitrator or arbitration panel,
LEGAL REQUIREMENT. "Legal Requirement" shall mean, with respect to any
Person, any federal, state, local, municipal, foreign or other law, statute,
constitution, principle of common law, resolution, ordinance, code, edict,
decree, rule, regulation, ruling or requirement issued, enacted, adopted,
promulgated, implemented or otherwise put into effect by or under the authority
of any Governmental Entity (or under the authority of the Nasdaq Small Cap
Market) that is applicable to such Person.
MATERIAL ADVERSE EFFECT. An event, violation, change, failure,
inaccuracy, circumstance or other matter will be deemed to have a "Material
Adverse Effect" on the Company if such event, violation, change, failure,
inaccuracy, circumstance or other matter has had, or could reasonably be
expected to have, a material adverse effect on (i) the business, operations or
financial condition of the Company or (ii) the ability of the Company to
consummate the Merger or any other transactions contemplated by the Agreement or
to perform any of its obligations under the Agreement; PROVIDED, HOWEVER, that:
(A) any adverse effect that results from the taking of any action permitted or
required by the Agreement or from the announcement or pendency of the Merger or
any of the other transactions contemplated by the Agreement shall be disregarded
in determining whether there has been or would be a "Material Adverse Effect" on
the Company; and (B) a decline in the Company's stock price or trading volume
shall not, in and of itself, constitute a "Material Adverse Effect" on the
Company and shall be disregarded in determining whether there has been or would
be a "Material Adverse Effect" on the Company. An event, violation, change,
failure, inaccuracy, circumstance or other matter will be deemed to have a
"Material Adverse Effect" on Parent if such event, violation, change, failure,
inaccuracy, circumstance or other matter has a material adverse effect on (i)
the business, operations or financial condition of Parent and its subsidiaries
taken as a whole, (ii) the ability of Parent to consummate the Merger or any
other transactions contemplated by the Agreement or to perform any of its
obligations under the Agreement or (iii) Parent's ability to vote, receive
dividends with respect to or otherwise exercise ownership rights with respect to
the stock of the Surviving Corporation.
PERSON. "Person" shall mean any individual or Entity.
PROPRIETARY ASSET. "Proprietary Asset" shall mean any: (a) patent,
patent application, trademark (whether registered or unregistered), trademark
application, trade name, fictitious business name, service xxxx (whether
registered or unregistered), service xxxx application, copyright (whether
registered or unregistered), copyright application, maskwork, maskwork
application, trade secret, know-how, customer list, franchise, system, computer
software, computer program, source code, algorithm, invention, design,
blueprint, engineering drawing,
A-3
proprietary product, technology, proprietary right or other intellectual
property right or intangible asset, or (b) right to use or exploit any of the
foregoing.
SEC. "SEC" shall mean the United States Securities and Exchange
Commission.
SECURITIES ACT. "Securities Act" shall mean the Securities Act of 1933,
as amended.
SHARES. "Shares" shall mean shares of common stock, $.01 par value per
share, of the Company.
SUBSIDIARY. An entity shall be deemed to be a "Subsidiary" of another
Person if such Person directly or indirectly owns, beneficially or of record,
(a) an amount of voting securities or other interests in such Entity that is
sufficient to enable such Person to elect at least a majority of the members of
such Entity's board of directors or other governing body, or (b) at least 50% of
the outstanding equity interests of such Entity.
SUPERIOR PROPOSAL. "Superior Proposal" means any bona fide written
proposal made by a third party to acquire, directly or indirectly, for
consideration consisting of cash and/or securities, more than 50% of the voting
power of the Company Common Stock or all or substantially all of the assets of
the Company and otherwise on terms which the Board of Directors of the Company
determines in its good faith judgment (after consultation with its financial
advisor) to be more favorable to the Company's stockholders than the Merger;
PROVIDED, HOWEVER, that the Board of Directors shall be required to take into
consideration the likelihood that the financing required to consummate the
transaction contemplated by such proposal will be obtained by such third party
on a timely basis in determining whether such proposal constitutes a "Superior
Proposal". An Acquisition Proposal shall not be precluded from constituting a
"Superior Proposal" solely as a result of such Acquisition Proposal being
conditioned upon the completion of due diligence.
TAX. "Tax" shall mean any tax (including income tax, franchise tax,
capital gains tax, gross receipts tax, value-added tax, surtax, estimated tax,
unemployment tax, national health insurance tax, excise tax, ad valorem tax,
transfer tax, stamp tax, sales tax, use tax, property tax, business tax,
withholding tax or payroll tax), levy, assessment, tariff, duty (including any
customs duty), deficiency or fee, and any related charge or amount (including
any fine, penalty or interest), imposed, assessed or collected by or under the
authority of any Governmental Entity.
TAX RETURN. "Tax Return" shall mean any return (including any
information return), report, statement, declaration, estimate, schedule, notice,
notification, form, election, certificate or other document or information filed
with or submitted to, or required to be filed with or submitted to, any
Governmental Entity in connection with the determination, assessment, collection
or payment of any Tax or in connection with the administration, implementation
or enforcement of or compliance with any Legal Requirement relating to any Tax.
A-4
AMERICAN COIN MERCHANDISING, INC.
COMPANY DISCLOSURE SCHEDULE
This disclosure schedule ("Disclosure Schedule") is being furnished by
Target Company ("Target") to Acquiror Corporation in connection with the
execution and delivery of that certain Agreement and Plan of Merger dated as of
September 9, 2001 between Target and Acquiror Corporation (the "Agreement").
Unless the context otherwise requires, all capitalized terms used in this
Disclosure Schedule shall have the respective meanings assigned to them in the
Agreement.
No reference to or disclosure of any item or other matter in this
Disclosure Schedule shall be construed as an admission or indication that such
item or other matter is material or that such item or other matter is required
to be referred to or disclosed in this Disclosure Schedule. No disclosure in
this Disclosure Schedule relating to any possible breach or violation of any
agreement, law or regulation shall be construed as an admission or indication
that any such breach or violation exists or has actually occurred.
This Disclosure Schedule and the information and disclosures contained in
this Disclosure Schedule are intended only to qualify and limit the
representations, warranties and covenants of Target contained in the Agreement
and shall not be deemed to expand in any way the scope or effect of any of such
representations, warranties or covenants.
The contents of all documents referred to in this Disclosure Schedule are
incorporated by reference in this Disclosure Schedule as though fully set forth
in this Disclosure Schedule.
The bold-faced headings contained in this Disclosure Schedule are included
for convenience only, and are not intended to limit the effect of the
disclosures contained in this Disclosure Schedule or to expand the scope of the
information required to be disclosed in this Disclosure Schedule.
2.3(b) Company options or contractual obligations outstanding as of the date of
this Agreement:
6/30/2001
EXERCISE GRANT OPTIONS
NAME PRICE DATE OUTSTANDING
------------------------------------------------------------------------------
Xx Xxxxx 2.625 11/21/2000 3,500
Xxxx Xxxxxxxxx 2.625 11/21/2000 1,000
Xxxxx Xxx 2.625 11/21/2000 1,000
Xxxx Xxxxxx 2.625 11/21/2000 1,250
Xxxx Xxxxxxxx 2.625 11/21/2000 1,000
Xxxxxxxx X. Xxxxxxxx 5.53 12/14/1995 3,000
Britain White 2.625 11/21/2000 5,000
Xxxxx Xxxxxxx 5.625 6/25/1999 15,000*
Xxxxx Xxxxxxx 2.813 2/24/2000 6,000*
Xxxxx Xxxxxxx 2.875 5/9/2000 7,500*
Xxxxx Xxxxxxx 3.75 5/8/2001 7,500*
Xxxxxxxxxxx X. Xxxxx 2.625 11/21/2000 3,500
Xxxxxxxxxxx X. Xxxxxx 5.53 12/14/1995 1,000
Xxxxxxxxxxx X. Xxxxxx 2.625 11/21/2000 5,500
Xxxxxx X. Xxxxxxx 2.625 11/21/2000 3,500
Xxxxxxx X. Xxxx 2.625 11/21/2000 500
Xxxx X. Xxxxxxxx 2.625 11/21/2000 1,250
Xxxxxx Xxxxxx 5.53 12/14/1995 3,500
Xxxxxx Xxxxxx 2.625 11/21/2000 1,000
Xxx Xxxxxxxx 2.625 11/21/2000 1,000
Duchelle X. Xxxxxxx 2.625 11/21/2000 500
Xx Xxxxxxx 2.625 11/21/2000 3,500
Xxxx XxXxxxx 2.625 11/21/2000 1,000
Xxxxxx Xxxxxxx 2.625 11/21/2000 3,500
Xxxx Xxxxx 2.625 11/21/2000 3,500
Xxxx Xxxxx 2.625 11/21/2000 1,250
Xxxx Xxxxxxx 6.375 6/25/1999 7,500*
Xxxx Xxxxxxx 2.875 5/9/2000 7,500*
Xxxx Xxxxxxx 3.75 5/8/2001 7,500*
Xxxxxxx X. Xxxxx 2.625 11/21/2000 750
Houston X. Xxxxxxx 2.625 11/21/2000 1,250
Xxxxx X. Xxxxxxx 2.625 11/21/2000 1,250
Xxxxx X. Xxxxxx 2.625 11/21/2000 2,500
Xxxxxxx Xxxxxxx 2.625 11/21/2000 2,500
Xxx Xxxxxxx 2.625 11/21/2000 750
Xxx Xxxx 2.625 11/21/2000 750
Xxx Xxxx 2.625 11/21/2000 1,250
Xxx Xxxxxx 5.53 12/14/1995 1,167
Xxx Xxxxxx 2.625 11/21/2000 5,000
Xxxx Xxxxx 5.125 2/3/1999 25,000
Xxxx X. Xxxxxxxx 7.00 10/13/1995 10,500*
Xxxx Xxxx 2.625 11/21/2000 50,000
Xxxx XxXxxx 2.625 11/21/2000 1,000
Xxxx Xxxxxxxx 6.375 6/25/1999 7,500*
Xxxx Xxxxxxxx 2.875 5/9/2000 7,500*
Xxxx Xxxxxxxx 2.625 11/21/2000 50,000*
Xxxx X. Xxxxxxxx 2.625 11/21/2000 1,500
Xxxxx Xxxxxxxxx 2.625 11/21/2000 1,000
Xxxxx Xxxxxxx Jankeck 2.625 11/21/2000 1,250
Xxx Xxxxxxxxxxx 2.625 11/21/2000 3,500
Xxxxxxx Xxxxxxxxxxx 5.53 12/14/1995 1,000
Xxxxxxx X. Xxxx 2.625 11/21/2000 5,000
Xxxxxxx X. Xxxxx 2.625 11/21/2000 500
Lennaia Xxxxxxx 2.625 11/21/2000 5,000
Xxxxxxx XxXxxxx 5.53 12/14/1995 5,000
Xxxxxxxx LaTera 2.625 11/21/2000 1,250
Xxxx Xxxxxx 2.625 11/21/2000 1,250
Xxxxxxx Xxxx 2.625 11/21/2000 1,250
Xxxxxxx Xxxxxxx 2.625 11/21/2000 1,250
Xxxxxxx Xxxxxxx 2.625 11/21/2000 1,250
Xxxxxxx Xxxxxx 2.625 11/21/2000 1,250
Xxxxxxxxx Xxxxxx 2.625 11/21/2000 1,000
Xxxxxx Xxxxxx 2.625 11/21/2000 1,000
Xxxx Xxxxxx 2.625 11/21/2000 1,000
Xxxxxxx Xxxxxx 5.53 12/14/1995 1,000
Xxxxxxx Xxxxxx 2.625 11/21/2000 1,250
Xxxxx Xxxxxxx 2.625 11/21/2000 5,000
Xxxxx Xxxxxxx 5.00 8/16/1999 150,000
Xxxxx Xxxxxxx 2.625 11/21/2000 125,000
Xxxxxxx Xxxxxxxxxx 6.375 6/25/1999 15,000*
Xxxxxxx Xxxxxxxxxx 2.813 2/24/2000 6,000*
Xxxxxxx Xxxxxxxxxx 2.875 5/9/2000 7,500*
Xxxxxxx Xxxxxxxxxx 3.75 5/8/2001 7,500*
Xxxxxxx Xxxxxxx 2.625 11/21/2000 3,500
Xxxxxxx Xxxxx 6.375 6/25/1999 7,500*
Xxxxxxx Xxxxx 2.875 5/9/2000 7,500*
Xxxxxxx Xxxxx 3.75 5/8/2001 7,500*
Xxx Xxxxxx 5.53 12/14/1995 3,000
Xxx Xxxxxx 2.625 11/21/2000 5,000
Xxxxxx X. Xxxx 2.625 11/21/2000 750
Xxxxxx Xxxxx 2.625 11/21/2000 2,500
Xxxxxx Xxxxxxxx 2.625 11/21/2000 3,500
Xxxxxx Xxxxx 2.625 11/21/2000 1,250
Xxxxxx X.Xxxxx 2.625 11/21/2000 1,000
Xxxxx Xxxxxxx 2.625 11/21/2000 750
Xxxxxx Xxxxx 2.625 11/21/2000 1,250
Xxxxxxx Xxxxx 5.53 12/14/1995 3,500
Xxxxxxx Xxxxx 2.625 11/21/2000 2,500
Xxxxxxx Xxxxxxx 2.625 11/21/2000 750
Xxxxxx Xxxxxx 2.625 11/21/2000 500
Xxxxx X. Xxxxxxxxx 2.625 11/21/2000 750
Xxxxxxx Xxxxxx 2.625 11/21/2000 2,500
Xxxxxxx Xxxxxxxxx 2.625 11/21/2000 1,250
Xxxx Xxxxxxx 2.625 11/21/2000 375
Xxxxxx X.Xxxx 2.625 11/21/2000 500
Xxxxx Xxxxxxxx 2.625 11/21/2000 500
W. Xxxx Xxxx 4.50 7/16/1995 20,000
707,542
=======
*Granted pursuant to the Company's 1995 Non-Employee Director Stock Option Plan
and related agreements.
All other options granted pursuant to the Company's Amended and Restated Stock
Option Plan and related documents.
2.3(d) In January 2000, the Company issued 5,125 shares of common stock pursuant
to the ESPP for which no form S-8 was filed.
2.5(g) 1995 Non-Employee Director Stock Option Plan and related agreements.
Amended and Restated Stock Option Plan and related agreements.
2.5(k) December 1, 2000 consulting agreement with Xxxx X. Xxxxxxxx, amended July
31, 2001. December 1, 2000 employment agreement with Xxxxxxx X. Xxxxxxx,
amended July 31, 2001. December 1, 2000 employment agreement with W. Xxxx
Xxxx, amended July 31, 2001.
Asset Purchase Agreement between the Company and Senarc, Inc.
2.5(m) Effective August 2001, the Company forgave indebtedness of an employee in
the amount of approximately $20,000. The employee had been advanced
moving expenses against an anticipated bonus for 1998, but after the
bonus was not issued for that year, the Company forgave the advance and
supplemented the employee's pay to cover associated taxes.
2.5(p) In 2001, based upon previously established formulas, the Company paid
bonuses of approximately $766,000 to employees for performance in 2000.
2.6(a)(i) Proprietary Assets owned by the Acquired Corporations and registered
with any Governmental Entity or for which an application has been
filed with any Governmental Entity:
COUNTRY FILED ISSUED APPLN-NO. ISSUE-NO. INVENTOR TITLE
------- ----- ------ --------- --------- -------- -----
U.S. 04/21/1989 01/23/1990 794,709 1,579,191 American Coin Sugar Loaf (Int'l Class 28)
Merchandising, Inc.
U.S. 12/18/1989 10/09/1990 011,920 1,616,544 American Coin Toy Shoppe
Merchandising, Inc.
U.S. 12/20/1989 11/27/1990 012,435 1,624,588 American Coin Sugarloaf (Int'l Class 9)
Merchandising, Inc.
U.S. 02/12/1993 10/05/1993 358,293 1,796,313 American Coin Fun Shoppe
Merchandising, Inc.
U.S. 09/27/1993 10/24/1995 440,944 1,930,216 American Coin Treasure Shoppe
Merchandising, Inc. Sugar Loaf and Design (Class 9 and
U.S. 07/18/1994 01/23/1996 550,221 1,950,388 American Coin 28)
Merchandising, Inc.
U.S. 07/18/1994 01/07/1997 550,417 2,028,133 American Coin Sugarloaf (in Class 42)
Merchandising, Inc.
U.S. 07/18/1994 02/20/1996 550,424 1,957,176 American Coin Sugarloaf and Design (Class 42)
Merchandising, Inc.
U.S. 07/18/1994 07/18/1995 550,421 1,905,902 American Coin Sugarloaf (Class 35)
Merchandising, Inc.
U.S. 07/03/1997 03/23/1999 319,445 2,233,463 American Coin Shoppe
Merchandising, Inc.
U.S. 02/02/1998 10/19/1999 426,799 2,287,231 American Coin Kid Shoppe
Merchandising, Inc.
U.S. 07/09/1998 06/27/2000 515,800 2,263,104 American Coin Shoppe of Stickers
Merchandising, Inc.
Canada 05/09/1995 05/11/1996 782315 458,658 American Coin Sugar Loaf
Merchandising, Inc.
Canada 05/09/1995 05/31/1996 782314 458,657 American Coin Fun Shoppe
Merchandising, Inc.
Canada 05/09/1995 08/09/1996 782316 461,041 American Coin Toy Shoppe
Merchandising, Inc.
Canada 05/09/1995 09/27/1996 782313 463,802 American Coin Treasure Shoppe
Merchandising, Inc.
2.6(a)(ii) Identity and brief description of all other proprietary assets owned
by the Acquired Corporations that are material to the business of the
Acquired Corporations:
Customer lists.
The Company independently developed software (known as the "Smart
System") for revenue tracking.
The Company reasonably believes that it possesses common law
trademark rights to the following marks:
American Coin Merchandising, Inc.
American Coin
ACMI
Toy Mart
Test of Skill
In addition, the Company may possess state law trademark rights to
the above and other marks.
2.6(a)(iii) None.
2.6(a)(iv) None.
2.6(b) None.
2.6(d) Premier Amusement Vendor Agreement between the Company and Best Vendors
Co., because this agreement includes a noncompetition provision.
2.7 Real property lease schedule:
LANDLORD
COMPANY NAME/ADDRESS ADDRESS CITY STATE ZIP
------------------------------------------------------------------------------------------------------------------------
BOULDER TECHNICAL BUILDING COMPANY 0000 XXXXXXX XXX. XXXXXXX XX 00000
C/O XX. XXXXXXX BUGGEL
XX XXX 0000
XXXXXXX, XX 00000-0000
TECHNICAL BUILDING COMPANY 0000 XXXXXXX XXX. XXXXXXX XX 00000
C/O XX. XXXXXXX XXXXXX
XX XXX 0000
XXXXXXX, XX 00000-0000
S.M.I.L.E. WPC CORPORATE, LLC 000 XXXX 00XX XXX. XXXXXX XX
000 XXXXXX XXXXXX, 0XX XXXXX
XXXXXXXX, XX 00000
DENVER TECHNICAL BUILDING COMPANY 0000 XXXXXXX XXX. XXXXXXX XX 00000
C/O XX. XXXXXXX XXXXXX
XX XXX 0000
XXXXXXX, XX 00000-0000
ARIZONA PACIFIC GULF PROPERTIES 0000 X. 00XX XX, XXX 0 XXXXX XX 00000
C/O COMMERCIAL PROPERTIES
0000 X. XXXXXXXXXX #000
XXXXX, XX 00000
CENTRAL XXX X. XXXXXXXXXX 0000 X XXX XXXXXX XX XXXX XXXXXXXX XX 00000
WASHINGTON 000 X 00XX XXX
XXXX XXXXXXXX, XX 00000
XXXXXXXXX XXXX REALTY COMPANY 000 XXXXXXXX XX XXXXXXXXX XX 00000
000 XXXXXXX XX., XXX 000
XXXXXXXXX, XX 00000
CHICAGO XX. XXXXXX X. XXXXXXXX 0000 Xxxxx Xxx XXX XXXXX XX 00000
0000 X. XXXXX XXXXXXX
XXXXXXXX, XX 00000
DENVER: SO. COL HARRISON PARK 0000-X XXXXXXXX XX XXX. XXXXXXX XX
X/X XXXXXXXX XXXXX XX XXXX XX
0000 XXXXXXXXXX XXXX # 0000
XXXXXXXXXX, XX 00000
EL PASO 710 INC. 0000 XXXXXX XX, XXX X-0 XX XXXX XX 00000
C/O HIETT & ASSOCIATES, INC. EXPIRES 1/31/02
00000 XXXXX XXXX XX XXX 000
XX XXXX, XX 00000
GEORGIA TAE ASSOCIATES, LLC 000 XXXXX XXXXXXXXX XXXXXXX XX 00000
XX XXX 0000 XXXX
XXXXXXX, XX 00000
GREAT PLAINS NEXT GENERATION INVESTMENTS LLC 0000 X XXXXXXXXXX XXXXXXX XX 00000
XX XXX 00000
XXXXXXX, XX 00000-0000
HOUSTON LITTLE YORK 00000 XXXX XXXXXX XXXX XXXXXXX XX 00000
0000 XX XXXXXX XXXXX 000
XXXXXXX, XX 00000
INDIANA BROOKVILLE P-52 LLC 0000 XXXXXXXXXX XX XXXXXXXXXX XX 00000
XX XXX 000
XXXXXXXXXXXX, XX 00000
INLAND XXXXXXX, LLC X 0000 XXXXXXXXXX XXXXXXX XX 00000
X-000 XXXXX XXXXX 000 XXX #00
XXXXXXX, XX 00000
JACKSONVILLE ABC INDUSTRIAL PARK 00 XXXXXXXXXX XXXX X, XXXXXX XXXX XX 00000
0000 XXXXXX XXX XXX 000
XXXXXX XXXX, XX 00000
KANSAS CITY UNIVERSAL AVENUE PROPERTIES, LLC 0000 XXXXXXXXX XXX XXXXXX XXXX XX 00000
00 XXXXX XXXXXXX, XXX 000
XX. XXXXX, XX 00000
LOUISIANA XXXXXXX REALTY 0000 X & X XXXX XXXXXXXX XX 00000
0000 XXXXXXXXX XXX
XXXXXXXXX, XX 00000
LOUISVILLE XXX XXXXX 0000 XXXXXXXXX XX. XXXXXXXXXX XX 00000
XX XXX 0000
XXXXXXXXXX, XX 00000
MEMPHIS BICO ASSOCIATES 0000 XXXXXX XXXX, #0 XXXXXXX XX 00000
W/NASHVILLE XX XXX 0000
XXXXXXX, XX 00000-0000
MICHIANA XXXX XXXXXX 0000 XXXX XX XXXXXX XXX X XXXXXXX XX 00000
0000 XXXX XX. XXXXXX XXX
XXXXXXX, XX 00000
MICHIANA SALA PARTNERS, INC. 00000 XXXXXXXXXXX XX. XXXXXXX XX 00000
00000 XXXXXXXXXX XXXX, XXXXX 000
XXXXXXXXXX, XX 00000
MID ATLANTIC SUNBURST PROPERTY MANAGEMENT 000 XXXXXX, 000 XXXXXXXXX XX 00000
0000 X. XXXXXXXX XX.
XXXXXXXXX, XX 00000
MINNESOTA TRUSTEE GROUP REALTY PARTNERS IV, LLP 0000 XXXXXXXX XXXXXX XXXXXXX XX 00000
C/0 XXXXXXX DEVELOPMENT, INC. WEST
ATTTN: XXXXX XXXXXXXXX
0000 XXXXXX XX 000
XXXXXXX, XXXXXXXXX 00000
MISSOURI DOMAR INVESTMENT CO. 000-000 XXXXX XXXXX XXXXXX XX 00000
000 XXXXX XX
XXXXXX, XX 00000
MONTANA XXXX XXXXXXXX 0000 XXXXXXXXXXX XX XXXXXXXX XX 00000
XX XXX 0000
XXXXXXXX, XX
XX XXXXXX
000 XXXXXXX XXXX
XXXXXXXX, XX
NASHVILLE RIVERVIEW BUSINESS CENTER 0000 XXXXXXX XXXX XXX 000 XXXXXXXXX XX 00000
0000 XXXXXXX XXXX XXX 000
XXXXXXXXX, XX 00000
(Month to Month)
NEBRASKA X.X. XXXXXXXXX 00000 XXXXXXXXXX XX. XXXXX XX 00000
SCHUREKAMP INVESTMENTS
0000 X. 000XX XXXXXX
XXXXX, XX 00000-0000
NEBRASKA WOODSIDE BUSINESS PARK, LLC 0000 XX 00XX XXXXX XXXXXX XXX
XX XXX 000 XXXXX 00
XXXXXX, XX 00000-0000
NEW MEXICO JMP COMPANY 0000 XXXXXX XXXX, X.X. XXXXXXXXXXX XX 00000
00000 XXXXXX XX XX XXX. X
XXXXXXXXXXX, XX 00000
NEW YORK XXXXX INDUSTRIAL PARK, LLC 00 XXXXXX XXX XXXXXX XX 00000
00X XXXXXX XXX
XXXXXX, XX 00000
XXXXX X XXXXXX REAL ESTATE 0 XXXXXXXX XX. XXXX XXXXXXX XX
00 XXXXXX XXXXXXX XX.
XXXXXXXXX, XX 00000
NO. CALIFORNIA RESEARCH DRIVE BUSINESS PARK 0000/0000 XXXXXXXX XX XXXXXXXXX XX 00000
000 XXXXXXXXX XXXXX, XXXX 0X
XXX XXXXXXX, XX 00000
OKLAHOMA XXXXXXX X. OR XXXXXXX X. XXXXXXX 000 XXXXXXXX XXXX. XXXXXX XX 00000
000 XXXXXXXX XXXX
XXXXXX, XX 00000
OREGON AGENT: H. XXXXX XxXXXXXXX PROPERTY 0000 XX XXXXXX XX XXXXXXXX XX 00000
MGMT, LLC
LANDLORD: (X.X. XXXXXX, JR. EXP. 9/00)
XX XXX 00000
XXXXXXXX, XX 00000
ORLANDO SILVER STAR ASSOCIATES 0000 XXXXXX XXXX XXXX XXXXXXX XX
0000 XXXXXX XXXX XXXX
XXXXXXX, XX 00000
PITTSBURGH PARK WEST ASSOCIATES 000 X XXXXXX XX XXXXXXXXXXX XX 00000
0000 XXXXXXX XX
XXXXXXXXXX, XX 00000-0000
SAN ANTONIO UNUM LIFE INSURANCE CO OF AMERICA 0000 XXXXXXXX XXXX. XXX XXXXXXX XX 00000
C/X XXXXX & XXXXX MGMT
0000 X.X. XXXX 000
XXX XXXXXXX, XX 00000
SAN XXXXXXX XXXXX ACRES TRAILER PARK 0000 X. XXX 00 #X XXX XXXXXX XX
0000 XXXX XXX 00
XXX XXXXXX, XX 00000
SEATTLE-CORP ALBURT INVESTMENTS 0000 XXXXX 000XX XX. XXXX XX 00000
ATTN: XXXXX ST. ERNOFF
00000 XX 00XX XX
XXXXXXXX, XX 00000
WASHINGTON ALBURT INVESTMENTS 0000 XXXXX 000XX XX. XXXX XX 00000
00000 XX 00xx Xx.
XXXXXXXX, XX 00000
SOCAL XXXX X. XXXXXX 0000 X. XXXXXX XX XXXX X XXXXXXX XX 00000
0000 X. XXXXXXXXXXXX XX. XXX X
XXXXXXX, XX 00000
SO. CAROLINA ENTRON PARTNERSHIP (EXP. 12/31/04) 000-X XXXXX XXX XXXX XXXXXXXXX XX 00000
XX XXX 000 000-X XXXXX XXX XXXX XXXXXXXXX XX 00000
XXXXXXXXX, XX 00000
SO. FLORIDA LAUDERDALE LAKES INDUSTRIAL PARK II XXXX 00-0000 XX 00XX XXXXXXXXXX XX
C/O LEVY REALTY ADVISORS INC WAY LAKES
0000 XX 00XX XXX
XXXXXXXXXX XXXXX, XX 00000
TAMPA BAY NEWLAR PARTNERS 0000 000XX XXX XX.XXXX X XXXXXXXXXX XX 00000
X/X XXXXX X. XXXXXX
#0 XXXXXX XXXX PLACE, UNIT 308
XXXXXXX, XX 00000
TEXAS ARROW LEASING, INC. 00000 XXXX XX, XXXX 0 XXXXX XX 00000
0000 XXXX XXXXX, XXX X
XXXXX, XX 00000
UTAH XX XXXXXXXX XXXXX INC 00 X XXXXXX XXXXXX, XXXX XXXX XXXX XX 00000
XXXXX XXXXX XXXXX XXXXX X-0
170 S MAIN ST. #1200 DIAMOND BUSINESS
SALT LAKE CITY, UT PARK
VIRGINIA WRIT 0000 X XXXXXXXX XX XXXXXX XX 00000
XX XXX 00000
XXXXXXXXX, XX
X.X. XXXXXXX 000 XXXXX XX., XXXXX X XXXXXXXX XX 00000
000 XXXXX XX., XXXXX X
XXXXXXXX, XX 00000
WISCONSIN XXXXX X. XxXXXXX 0000 XXXXXXXX XX. XXXXXXX XX 00000
0000 XXXXXXXXXX XXXXXX
XXXXXXX, XX 00000
2.7(c) None.
2.8 The Company has been given notice of breach by Phoenix Restaurant Group.
December 1, 2000 consulting agreement with Xxxx X. Xxxxxxxx, amended July
31, 2001, contains a provision for acceleration of options upon a change
of control. December 1, 2000 employment agreement with Xxxxxxx X. Xxxxxxx,
amended July 31, 2001, contains a provision for acceleration of options
upon a change of control. December 1, 2000 employment agreement with W.
Xxxx Xxxx, amended July 31, 2001, contains a provision for acceleration of
options upon a change of control.
In addition, all outstanding options under the Company Stock Option Plans
shall vest in full immediately prior to the Effective Time.
In connection with the Agreement and the Merger, the Company will have an
obligation to pay to Xxxxxx Godward LLP its transactional fees and a
$150,000 success fee at or prior to closing.
2.9 In January 2001, the Company settled with the State of Washington for
previous violations.
2.10 The Company has been given notice of breach by Phoenix Restaurant Group,
Inc.
Attorneys representing the Company have received a letter from attorney
Xxxx X. Xxxxxxxxx stating that Senarc, Inc. intends to seek arbitration of
outstanding issues between Senarc and the Company. A copy of this letter
has been provided to Parent's counsel.
Reference the disclosures in 2.12(c).
Current Employment Related Claims:
Xxxxxxxxx Xxxxxxx vs. American Coin Merchandising, Inc.
Defense Counsel: Glast, Xxxxxxxx & Xxxxxx
Active Case
Xxxxxx Xxxxxx vs. American Coin Merchandising, Inc.
Defense Counsel: Xxxxxxxx Xxxxxxx and Xxxxx
Inactive
Xxxxx XxXxxxxxx
Wage Claim - State of Wyoming
Inactive
Xxxxx Xxxxxx
Wage Claim - State of South Dakota
Inactive
Workers Compensation Claims:
--------------------------------------------------------------------------------------------------------------------------
Location DOI DOR Emp. Occcup. Description Amount Amount
Name Paid Res.
--------------------------------------------------------------------------------------------------------------------------
S. Carolina 12/4/1997 12/4/1997 Xxxxx Rte. IV sleeping at truck stop 32,840.00 86019.00
Xxxxxxx Merch. OV rolled into her
--------------------------------------------------------------------------------------------------------------------------
Chicago 4/3/1998 4/3/1998 Xxxxxx Rte. slid kiddie ride to clean 128,959.00 71684.00
Desmond Merch. behind and hurt back
--------------------------------------------------------------------------------------------------------------------------
ARIZONA 1/11/1999 1/11/1999 Xxx General AMPUTATION LITTLE 51,334.00 1613.00
Xxxxxx Mngr. TOE
--------------------------------------------------------------------------------------------------------------------------
S. Cal 2/12/1999 3/12/2000 Xxxxx Rte. Stressed out from car 0.00 500.00
Xxxxxxxx- Manager being broken into
Young
==========================================================================================================================
Houston 5/28/1999 5/28/1999 Xxxxxxxx Rte. Neck pain from being 56.00 2.00
Myint Merch. rear-ended
==========================================================================================================================
S. Cal 5/28/1999 3/12/2000 Xxxxx Rte. Stressed out from car 0.00 500.00
Xxxxxxxx- Manager being broken into
Young
Oklahoma 6/2/1999 6/2/1999 Xxxxxx Rte. sore neck and back from 15,632.00 4460.00
Xxxxx Merch. auto accident
Orlando 6/3/1999 6/3/1999 Xxxx Xxx Rte. Reached for bag of toys 38,213.00 52924.00
Merch. pulled her back
El Paso 6/20/1999 8/19/1999 XXXXXX Rte. strained back moving 34,141.00 30106.00
XXXXX Manager machine
Seattle 8/16/1999 Xxxxxxxx Rte. ankle sprain 5,867.72
Warehouse Xxxxxxx Merch.
(Xxxxxx)
San Antonio 10/1/1999 10/1/1999 Xxxxxxxxx Rte. lower back strain 55,970.00 8792.00
Xxxxxxx Merch.
--------------- ---------------------------------------------------------------------------------
Nebraska 10/15/1999 10/15/1999 Xxxxx Rte. Merch. electric shock while 32,244.00 11006.00
Xxxxxx repairing machine
-----------
S. Cal 11/1/1999 5/24/2000 Xxxxxxx Rte. Manager slipped & fall 575.00 6128.00
Xxxxxxxxx
--------------------------------------------------------------------------------------------------------------------------
Missouri 2/1/2000 2/8/2000 XXXXX Rte. Merch. SLIPPED AND FELL 19,781.00 11882.00
CRIMES
--------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
Location DOI DOR Emp. Occcup. Total
Name
-------------------------------------------------------------- -----------
S. Carolina 12/4/1997 12/4/1997 Xxxxx Rte. 118859.00 represented
Xxxxxxx Merch. by counsel
Chicago 4/3/1998 4/3/1998 Xxxxxx Rte. 200643.00
Desmond Merch.
ARIZONA 1/11/1999 1/11/1999 Xxx General 52947.00
Xxxxxx Mngr.
S. Cal 2/12/1999 3/12/2000 Xxxxx Rte. 500.00
Xxxxxxxx- Manager
Young
===============================================================================================
Houston 5/28/1999 5/28/1999 Xxxxxxxx Rte. 58.00
Myint Merch.
===============================================================================================
S. Cal 5/28/1999 3/12/2000 Xxxxx Rte. 500.00
Xxxxxxxx- Manager
Young
Oklahoma 6/2/1999 6/2/1999 Xxxxxx Rte. 20092.00
Xxxxx Merch.
-----------------------------------------------------------------------------------------------
Orlando 6/3/1999 6/3/1999 Xxxx Xxx Rte. 91137.00
Merch.
-----------------------------------------------------------------------------------------------
El Paso 6/20/1999 8/19/1999 XXXXXX Rte. 64247.00
XXXXX Manager
-------------
Seattle 8/16/1999 Xxxxxxxx Rte. 5867.72
Warehouse Xxxxxxx Merch.
(Xxxxxx)
-------------
San Antonio 10/1/1999 10/1/1999 Xxxxxxxxx Rte. 64762.00 represented
Xxxxxxx Merch. by counsel
-----------------------------------------------------------------------------------------------
Nebraska 10/15/1999 10/15/1999 Xxxxx Rte. Merch. 43250.00
Xxxxxx
----------- -------------
S. Cal 11/1/1999 5/24/2000 Xxxxxxx Rte. Manager 6703.00 represented
Xxxxxxxxx by counsel
-------------
Missouri 2/1/2000 2/8/2000 XXXXX Rte. Merch. 31663.00
CRIMES
Virginia 2/4/2000 2/9/2000 XXXXXX Rte. Merch. strained back 123,707.00 203809.00
XXXXXXX LOADING VEHICLE
Denver 5/19/2000 4/20/2001 Xxxxxxx WAREHOUSE strain to right shoulder 0.00 600.00
Xxxxxx from lifting boxes
S. Cal 5/20/2000 5/24/2000 Xxxxxxx Rte. Manager strained both arms, 999.00 8231.00
Xxxxxxxxx hands, back, spine,
headache, stress
S. Cal 5/20/2000 5/24/2000 Xxxxxxx Rte. Manager strained fingers opening 10,409.00 3916.00
Xxxxxxxxx a lock
==========================================================================================================================
Oklahoma 7/25/2000 8/8/2000 Xxxxxx complaining of back, 0.00 1001.00
Xxxxx neck pain since accident
==========================================================================================================================
Denver 9/19/2000 9/21/2000 Don grand junction strained finger opening 24,588.00 646.00
Xxxxxxxxxx lock
Louisville 9/29/2000 10/6/2000 Xxxx Rte. Merch. Strain to right shoulder 26,409.00 13453.00
Xxxxxx carrying coin bag
--------------------------------------------------------------------------------------------------------------------------
Jacksonville 10/24/2000 10/24/2000 Xxxxxxx asst manager strained shoulder moving 7,585.00 12472.00
Serger machines
--------------------------------------------------------------------------------------------------------------------------
Oklahoma 11/1/2000 11/1/2000 Marguita severed tendons in wrist, 32,065.00 5248.00
Xxxxx hand caught in machine
--------------------------------------------------------------------------------------------------------------------------
Nashville 11/21/2000 11/22/2000 Xxxxxx fractured right elbow 4,426.00 8457.00
Regg when she tripped on
garage door pull rope
UTAH 11/23/2000 5/8/2001 Xxxxxxx Rte. Driver pulled muscles in 77.00 223.00
Xxxxxxx shoulder
Georgia 12/2/2000 12/5/2000 Xxxxxxx rte merch Injured in vehicle 1,573.00 7898.00
Xxxxxx accident
S. Carolina 12/5/2000 12/6/2000 Xxxxx rte merch Injuries during car 8,423.00 15636.00
Xxxxxx accident
Virginia 3/1/2001 3/6/2001 Xxxxx rte merch involved in altercation 330.00 5344.00
Xxxxx with customer
Kansas City 3/9/2001 3/9/2001 Xxxxx Rte. Merch. injuries from auto 8,004.00 5778.00
Xxxxxx accident
Denver 3/22/2001 3/23/2001 Xxxxxxx repetitive use of hands 265.00 590.00
Xxxxxx
--------------------------------------------------------------------------------------------------------------------------
S. Cal 4/2/2001 4/2/2001 Xxxxx Rte. Manager hit his head on edge of 0.00 300.00
Xxxxxx storage unit door
==========================================================================================================================
S. Carolina 4/13/2001 4/24/2001 Xxxxxx rte merch blood poisoning after 264.00 3736.00
Xxxxxx puncturing nail with
metal on machine
==========================================================================================================================
Missouri 4/17/2001 4/23/2001 Xxxxxx Asst Mgr Mis-step caused her to 6,107.00 14105.00
Garland fall on knee and twist
back
Orlando 4/22/2001 4/24/2001 Kooseeal Rte. Merch. involved in rearend 377.00 0.00
Xxxxx accident OV rearended
Kooseeal
--------------------------------------------------------------------------------------------------------------------------
Great Plains 4/24/2001 5/3/2001 Xxxxxx xxxx counter Employee strained 3,529.00 4523.00
Xxxxxxx muscles in shoulder
moving coins
--------------------------------------------------------------------------------------------------------------------------
Seattle 4/25/2001 4/27/2001 Xxxxx Whse. Cut her arm trying to 486.36
Warehouse Xxxxxx open a box
--------------------------------------------------------------------------------------------------------------------------
Louisiana 4/26/2001 4/30/2001 Ina Employee involved in 3,982.00 6065.00
Xxxxxxxxx auto accident
--------------------------------------------------------------------------------------------------------------------------
Minnesota 5/9/2001 5/16/2001 Xxxxx Le office strain to hand from 641.00 2.00
Blanc working
computer/counting
money
-------------------------------------------------------------------
Oklahoma 5/15/2001 5/16/2001 Xxxxxxx twisted back servicing 3,956.00 15709.00
Xxxxxxx machine
-------------------------------------------------------------------
Denver 5/18/2001 5/21/2001 Xxxx Xxxxxx strained his back moving 425.00 2.00
a machine
----------------- ------------
Kansas City 6/4/2001 6/4/2001 Xxxxxxx Rte. Merch. Fell out of van and 0.00 0.00
Xxxxxxxx injured knee
----------------- ------------
Charlotte 6/5/2001 6/5/2001 Xxxxxx rte merch injured back unloading 1,559.00 956.00
Stanford product from truck
--------------------------------------------------------------------------------------------------------------------------
Virginia 2/4/2000 2/9/2000 XXXXXX Rte. Merch. 327516.00
XXXXXXX
------------
Denver 5/19/2000 4/20/2001 Xxxxxxx WAREHOUSE 600.00 represented
Xxxxxx by counsel
------------
S. Cal 5/20/2000 5/24/2000 Xxxxxxx Rte. Manager 9230.00 represented
Xxxxxxxxx by counsel
------------
S. Cal 5/20/2000 5/24/2000 Xxxxxxx Rte. Manager 14325.00 represented
Xxxxxxxxx by counsel
===============================================================================================
Oklahoma 7/25/2000 8/8/2000 Xxxxxx 1001.00
Xxxxx
===============================================================================================
Denver 9/19/2000 9/21/2000 Don grand junction 25234.00
Xxxxxxxxxx
Louisville 9/29/2000 10/6/2000 Xxxx Rte. Merch. 39862.00
Xxxxxx
-----------------------------------------------------------------------------------------------
Jacksonville 10/24/2000 10/24/2000 Xxxxxxx asst manager 20057.00
Serger
-----------------------------------------------------------------------------------------------
Oklahoma 11/1/2000 11/1/2000 Marguita 37313.00
Xxxxx
-----------------------------------------------------------------------------------------------
Nashville 11/21/2000 11/22/2000 Xxxxxx 12883.00
Regg
------------
UTAH 11/23/2000 5/8/2001 Xxxxxxx Rte. Driver 300.00
Xxxxxxx
------------
Georgia 12/2/2000 12/5/2000 Xxxxxxx rte merch 9471.00
Xxxxxx
------------
S. Carolina 12/5/2000 12/6/2000 Xxxxx rte merch 24059.00
Xxxxxx
------------
Virginia 3/1/2001 3/6/2001 Xxxxx rte merch 5674.00
Xxxxx
------------
Kansas City 3/9/2001 3/9/2001 Xxxxx Rte. Merch. 13782.00
Xxxxxx
------------
Denver 3/22/2001 3/23/2001 Xxxxxxx 855.00 represented
Xxxxxx by counsel
-----------------------------------------------------------------------------------------------
S. Cal 4/2/2001 4/2/2001 Xxxxx Rte. Manager 300.00
Xxxxxx
===============================================================================================
S. Carolina 4/13/2001 4/24/2001 Xxxxxx rte merch 4000.00
Xxxxxx
===============================================================================================
Missouri 4/17/2001 4/23/2001 Xxxxxx Asst Mgr 20212.00 represented
Garland by counsel
Orlando 4/22/2001 4/24/2001 Kooseeal Rte. Merch. 377.00
Xxxxx
-----------------------------------------------------------------------------------------------
Great Plains 4/24/2001 5/3/2001 Xxxxxx xxxx counter 8052.00
Xxxxxxx
-----------------------------------------------------------------------------------------------
Seattle 4/25/2001 4/27/2001 Xxxxx Whse. 486.36
Warehouse Xxxxxx
-----------------------------------------------------------------------------------------------
Louisiana 4/26/2001 4/30/2001 Ina 10047.00
Xxxxxxxxx
-----------------------------------------------------------------------------------------------
Minnesota 5/9/2001 5/16/2001 Xxxxx Le office 643.00
Blanc
----------------------------------------
Oklahoma 5/15/2001 5/16/2001 Xxxxxxx 19665.00 represented
Xxxxxxx by counsel
----------------------------------------
Denver 5/18/2001 5/21/2001 Xxxx Xxxxxx 427.00
----------- --------
Kansas City 6/4/2001 6/4/2001 Xxxxxxx Rte. Merch. 0.00
Xxxxxxxx
----------- --------
Charlotte 6/5/2001 6/5/2001 Xxxxxx rte merch 2515.00
Stanford
==========================================================================================================================
ARIZONA 6/6/2001 6/6/2001 Xxxxxxxx abdominal strain 1,020.00 1474.00
Bald
==========================================================================================================================
Chicago 6/6/2001 6/13/2001 Xxxxxxxx Rte Merch lifting box of gum balls 681.00 22094.00
Ahrnedt strained her back
Washington 6/12/2001 6/12/2001 Xxxxxxx Rte. Merch twisted his ankle 229.49 0
Xxxxx
--------------------------------------------------------------------------------------------------------------------------
North Cal. 6/22/2001 6/26/2001 Xxxxxx injured back when 0.00 300.00
Xxxxx bending to service
machines
--------------------------------------------------------------------------------------------------------------------------
Pittsburgh 6/27/2001 7/7/2001 Xxxxxxx hit himself in the teeth 1,740.00 1261.00
X'xxxxx with hammer: broke teeth
--------------------------------------------------------------------------------------------------------------------------
Washington 6/28/2001 6/28/2001 Melody Rte. Merch injured her back 0 0
Xxxxxxx changing a bridge
Great Plains 7/5/2001 7/5/2001 Xxxxx Rte manager Machine fell off liftgate 601.00 2.00
Xxxxxxxx onto employee
--------------------------------------------------------------------------------------------------------------------------
Louisiana 7/12/2001 7/16/2001 Rose injury to lower back 0.00 300.00
Xxxxxxxx pulling cash bags out of
safe
Washington 7/17/2001 7/18/2001 Melody Rte. Merch injured her back and 0 0
Xxxxxxx shoulder while working
on machine
Jacksonville 7/18/2001 8/8/2001 Xxxxxxx asst manager splinter in hand from 0.00 300.00
Serger cabinet
==========================================================================================================================
Kansas City 7/18/2001 7/18/2001 Haidi Rte. Merch. Hurt her lower back 70.00 235.00
Xxxxxxx pouring bag of quarters
into counter
==========================================================================================================================
Nashville 7/18/2001 7/19/2001 Houston Asst Mgr injured lower back 0.00 300.00
Xxxxxxx moving video equipment
in warehouse
S. Cal 7/24/2001 7/24/2001 Xxxxx rte Merch strained arm opening 0.00 300.00
Xxxxxxx garage door on storage
unit
--------------------------------------------------------------------------------------------------------------------------
Oklahoma 7/26/2001 7/26/2001 Xxxxx Xxxxx repetitive motion injury 26.00 274.00
with possible wrist
fracture
--------------------------------------------------------------------------------------------------------------------------
BOULDER 8/2/2001 8/3/2001 Xxxxxxx SMILE punctured left hand with 0.00 0.00
Xxxxx a drill bit
Kansas City 8/2/2001 8/13/2001 Xxxxxx Rte. Merch. employee fell from van 0.00 0.00
Xxxxxxx and strained neck and
back
Oklahoma 8/14/2001 8/15/2001 Xxxxxxx hit head on door lock 0.00 0.00
Xxxxxx mechanism
==========================================================================================================================
Oklahoma 8/15/2001 8/29/2001 Xxxx Xxxxx stress fracture from 0.00 0.00
putting weight on foot
==========================================================================================================================
Jacksonville 8/16/2001 8/17/2001 Xxxxxxx Rte Merch slipped and injured back 0.00 0.00
Xxxx unloading car
Charlotte 8/22/2001 8/23/2001 Xxxxx rte merch sore back 0.00 0.00
Holden
--------------------------------------------------------------------------------------------------------------------------
Tampa 8/31/2001 9/4/2001 Xxxxx 0.00 0.00
Xxxxxxxx
--------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Location DOI DOR Emp. Occcup. Total
Name
=================================================================================
ARIZONA 6/6/2001 6/6/2001 Xxxxxxxx 2494.00
Bald
=================================================================================
Chicago 6/6/2001 6/13/2001 Xxxxxxxx Rte Merch 22775.00
Ahrnedt
---------
Washington 6/12/2001 6/12/2001 Xxxxxxx Rte. Merch 229.49
Xxxxx
---------------------------------------------------------------------------------
North Cal. 6/22/2001 6/26/2001 Xxxxxx 300.00
Xxxxx
=================================================================================
Pittsburgh 6/27/2001 7/7/2001 Xxxxxxx 3001.00
X'xxxxx
=================================================================================
Washington 6/28/2001 6/28/2001 Melody Rte. Merch 0
Xxxxxxx
---------
Great Plains 7/5/2001 7/5/2001 Xxxxx Rte manager 603.00
Xxxxxxxx
---------------------------------------------------------------------------------
Louisiana 7/12/2001 7/16/2001 Rose 300.00
Xxxxxxxx
Washington 7/17/2001 7/18/2001 Melody Rte. Merch 0
Xxxxxxx
Jacksonville 7/18/2001 8/8/2001 Xxxxxxx asst manager 300.00
Serger
=================================================================================
Kansas City 7/18/2001 7/18/2001 Haidi Rte. Merch. 305.00
Xxxxxxx
=================================================================================
Nashville 7/18/2001 7/19/2001 Houston Asst Mgr 300.00
Xxxxxxx
---------
S. Cal 7/24/2001 7/24/2001 Xxxxx rte Merch 300.00
Xxxxxxx
---------------------------------------------------------------------------------
Oklahoma 7/26/2001 7/26/2001 Xxxxx Xxxxx 300.00
---------------------------------------------------------------------------------
BOULDER 8/2/2001 8/3/2001 Xxxxxxx SMILE 0.00
Xxxxx
---------
Kansas City 8/2/2001 8/13/2001 Xxxxxx Rte. Merch. 0.00
Xxxxxxx
---------
Oklahoma 8/14/2001 8/15/2001 Xxxxxxx 0.00
Xxxxxx
=================================================================================
Oklahoma 8/15/2001 8/29/2001 Xxxx Xxxxx 0.00
=================================================================================
Jacksonville 8/16/2001 8/17/2001 Xxxxxxx Rte Merch 0.00
Xxxx
---------
Charlotte 8/22/2001 8/23/2001 Xxxxx rte merch 0.00
Holden
---------------------------------------------------------------------------------
Tampa 8/31/2001 9/4/2001 Xxxxx 0.00
Xxxxxxxx
---------------------------------------------------------------------------------
Injury Claims:
-------------------------------------------------------------------------------------------------------------------------
Case # DOL Injured Description Amount Amount Amount Total Open/Closed
Name Paid Res. Rec.
-------------------------------------------------------------------------------------------------------------------------
210LU157100 6/14/1999 Xxxxxxx woman hit in back by 0 0 0 0 OPEN
Xxxxxxxxx automatic door as she
watched
------------------------------------------- ===========--------------------------
440LM150913 12/16/99 XXXXXXX XXXXX FELL OFF 288 7002 0 7290 5000
XXXXX RIDE
=========== ---------------------
565QM080778 1/8/2000 Xxxxxxx playing machine received 0 5000 0 0 OPEN
Xxxx a jolt
---------------------------------------------------------------------------------------------------------------==========
565LM082140 3/26/2000 Chyann child got finger caught in 3250 0 3250 open
Xxxxxxxx EBV. Lost finger to first
joint
---------------------------------------------------------------------------------------------------------------
7/30/2000 child slammed finger in 0 0 0 0 open
-------------------------------------------------------------------------------------------------------------------------
Case # DOL Injured Description Amount Amount Amount Total Open/Closed
Name Paid Res. Rec.
-------------------------------------------------------------------------------------------------------------------------
door of Toy Machine lost
fingernail
-------------------------------------------------------------------------------------------------------------------------
689L38425 10/14/00 Amber child found a hypodermic 0 0 0 0 open
Church needle in ty
-------------------------------------------------------------------------------------------------------------------------
788L64262 10/16/00 Xxxxxx tripped over electrical 0 0 0 0 open
Xxxxxxxx cord of a kiddie ride
-------------------------------------------------------------------------------------------------------------------------
10/17/00 Xxxxx child chipped tooth 756.41 0 0 0 open
Xxxxxxx opening ring box
-------------------------------------------------------------------------------------------------------------------------
10/31/00 Xxxxx arm caught inside Stoppe 0 0 0 756.41 open
Xxxxxxx Sop
-------------------------------------------------------------------------------------------------------------------------
46 CES OA0974 0/31/00 Xxxxxxx child found sewing 0 0 0 0 open
Xxxxx-Xxxxx needle in toy
-------------------------------------------------------------------------------------------------------------------------
YAJKL05242 11/10/00 XxxxXxx tripped over a kiddie 0 0 0 0 open
Xxxxx ride
-------------------------------------------------------------------------------------------------------------------------
000X00000 10/25/00 Xxxxxx Child hit his head on the 0 0 0 0 open
Xxxxxxx footrest of near by ride
-------------------------------------------------------------------------------------------------------------------------
838l06435 2/4/2001 Xxxxx child cut hand inside Toy 0 0 0 0 open
Hathaway Shppe chute
-------------------------------------------------------------------------------------------------------------------------
XXXX00000 3/10/2001 Lamann child fell off a ride 0 0 0 0 open
Xxxx
-------------------------------------------------------------------------------------------------------------------------
397L65694 3/22/2001 Amber child attempted to get on 0 0 0 0 open
Winnie a ride in motion and fell
off
-------------------------------------------------------------------------------------------------------------------------
788LM63085 4/14/2001 Ke'Xxxxx child shocked by 0 0 0 0
Xxxxxxxxx machine in Shoney's
-------------------------------------------------------------------------------------------------------------------------
no claim filed 4/27/2001 Xxxxxx Customer stuck by 0 0 0 0 open
Xxxxxx needle found in animal
-------------------------------------------------------------------------------------------------------------------------
4/30/2001 Xxxxxxx child fell off a ride (not 0 0 0 0 open
Xxxxx operating) hit his head on
floor
-------------------------------------------------------------------------------------------------------------------------
788L64360 5/4/2001 Xxx customer tripped over 0 0 0 0 open
Xxxxxxxx security bar
-------------------------------------------------------------------------------------------------------------------------
788LM64506 5/22/2001 Colton 150lb machine fell on 12 0 0 0 0 open
Xxxxx year old boy
-------------------------------------------------------------------------------------------------------------------------
6/10/2001 Xxxxx got electrical shock from 0 0 0 0 open
Evartt treasure shop in Walmart
972 Lk Worth TX
-------------------------------------------------------------------------------------------------------------------------
689L42146 6/20/2001 Luqman child climbing on coin 0 0 0 0 open
Xxxx machine and it fell on
him
-------------------------------------------------------------------------------------------------------------------------
397L68339 7/2/2001 Child child stuck by needle in 0 0 0 0 open
Bivey Pink Panther toy
-------------------------------------------------------------------------------------------------------------------------
788LM6565 7/22/2001 Child child contracted 0 0 0 0 open
Xxxxxx gingivitus perhaps from
"Horror Teeth"
-------------------------------------------------------------------------------------------------------------------------
8/4/2001 Xxx xxxxx pulled off a sticker 0 0 0 0
Green and had an irritation on
his arem
-------------------------------------------------------------------------------------------------------------------------
Auto Claims:
--------------------------------------------------------------------------------------------------------------------
Case # DOA Emp. Description Amount Amount Amount
Name Paid Res. Rec.
--------------------------------------------------------------------------------------------------------------------
441AM072121 9/29/1998 Xxxxxxx XX stopped to make left at 4468 5537 0
Xxxxxx intersection, OV southbound went
around a truck and hit IV
--------------------------------------------------------------------------------------------------------------------
425AM164818-2 12/2/1998 Xxx XX came over hill and was blinded by 7119 9884 0
Marcus sun, IV ran stop sign and was hit on
rear and pushed into traffic
--------------------------------------------------------------------------------------------------------------------
425AM164818-3 12/2/1998 Xxx XX came over hill and was blinded by 1569 8431 0
Marcus sun, IV ran stop sign and was hit on
rear and pushed into traffic
--------------------------------------------------------------------------------------------------------------------
425AM164818-5 12/2/1998 Xxx XX came over hill and was blinded by 606 4394 0
Marcus sun, IV ran stop sign and was hit on
rear and pushed into traffic
--------------------------------------------------------------------------------------------------------------------
2G919278 3/11/2000 Xxxx ov turned left in front of iv 4424 10000 0
Xxxxxx
--------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------
Case # DOA Emp. Total Open/Closed
Name
---------------------------------------------------------------
441AM072121 9/29/1998 Xxxxxxx 10005 open
Xxxxxx
---------------------------------------------------------------
425AM164818-2 12/2/1998 Guy 17003 Open
Marcus
---------------------------------------------------------------
425AM164818-3 12/2/1998 Guy 10000 Open
Marcus
---------------------------------------------------------------
425AM164818-5 12/2/1998 Guy 5000 Open
Marcus
---------------------------------------------------------------
2G919278 3/11/2000 Xxxx 14424 open
Xxxxxx
---------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Case # DOA Emp. Description Amount Amount Amount
Name Paid Res. Rec.
--------------------------------------------------------------------------------------------------------------------
2F910917 8/19/2000 Xxxx XX pulled out of parking lot hit in rear 10479 20280 0
Xxxxx by OV
--------------------------------------------------------------------------------------------------------------------
3A070300 9/6/2000 Xxxxxxx XX PULLED ACROSS EXIT LANE 5623 30391 0
Xxxxxxx IN PATH OF ONCOMING
VEHICLE
--------------------------------------------------------------------------------------------------------------------
2G924952 10/18/2000 Xxxxxxx xx rearended ov 65 20247 0
Xxxx
--------------------------------------------------------------------------------------------------------------------
2f911984 12/19/2000 Xxxx XX slid on icy roadway hit 3096 2020
Xxxxxx XX
--------------------------------------------------------------------------------------------------------------------
2A656474 3/8/2001 Xxxxxx XX hit ov 0 2227 0
Xxxxxx
--------------------------------------------------------------------------------------------------------------------
2G805924 4/22/2001 Kooseeal iv was rearended by OV 0.00 2047.00 0
Xxxxx
--------------------------------------------------------------------------------------------------------------------
1K925071 5/8/2001 Xxxx XX rearended by hit and 0 0 0
Xxxxxxxxxx run driver
--------------------------------------------------------------------------------------------------------------------
3A922588 5/11/2001 Xxxxxx XX rearended OV 3,161.00 1100.00
Xxxxxxx
--------------------------------------------------------------------------------------------------------------------
2F913066 5/13/2001 hail damage 2876 546
--------------------------------------------------------------------------------------------------------------------
2F913067 5/13/2001 hail damage 3283 544
--------------------------------------------------------------------------------------------------------------------
2B903735 5/24/2001 Xxxxxxxx XX drifted off road and over corrected 3324 1031.00 0.00
Kalton hit slope
--------------------------------------------------------------------------------------------------------------------
2F913148 5/24/2001 Xxxxx Xxxxx XX rearended OV 6 1190 0
--------------------------------------------------------------------------------------------------------------------
2F059813 05/27/01 Xxxxxx HAIL DAMAGE 3311 544 0
--------------------------------------------------------------------------------------------------------------------
no claim made 5/31/2001 IV hit by OV as it was parked in back 0 0
of building
--------------------------------------------------------------------------------------------------------------------
2B903828 6/5/2001 Xxxxxxxxx XX backed into OV 0 1081.00 0.00
Xxxxx
--------------------------------------------------------------------------------------------------------------------
2F060030 06/15/01 Xxxxxx back window shattered 0 0 0
when kiddie ride shifted
--------------------------------------------------------------------------------------------------------------------
1K926031 6/15/2001 Xxxx Xxxxxx XX hit headon by OV 0 1191 0
--------------------------------------------------------------------------------------------------------------------
3J903804 6/19/2001 Xxxxxx xxxx damage while parked 0 0 0
Bridges at airport
--------------------------------------------------------------------------------------------------------------------
3A923070 6/28/2001 Xxxxx Xxxxx car caught fire 0 0 0
--------------------------------------------------------------------------------------------------------------------
2F913467 7/4/2001 Xxxxx XX rearended by OV 0 2045 0
XxXxxxxxxx
--------------------------------------------------------------------------------------------------------------------
1k923754 7/7/2001 Xxxx XX rearended 0 2047 0
Xxxxxxxxxx
--------------------------------------------------------------------------------------------------------------------
2B904043 7/18/2001 Xxxxxx XX in incorrect turning lane and was 0 1621.00 0.00
Xxxxx hit by OV
--------------------------------------------------------------------------------------------------------------------
2A925748 7/23/2001 Xxxxxx XX STRUCK OV 0 111 0
Xxxx
--------------------------------------------------------------------------------------------------------------------
2G931730 7/31/2001 Xxxxxx XX rearended OV 721 5611 0
Xxxxxxxx
--------------------------------------------------------------------------------------------------------------------
2A926101 8/15/2001 Xxxxxx XX STRUCK OV 0 0 0
Xxxxxx
--------------------------------------------------------------------------------------------------------------------
2F913760 8/17/2001 Xxxxxx XX rearended by OV 0 0 0
Xxxxxxx
--------------------------------------------------------------------------------------------------------------------
3J464499 8/18/2001 Xxxxx Xxxxxx Hit and run while parked 0 0 0
at home
--------------------------------------------------------------------------------------------------------------------
1K030921 8/22/2001 Xxxxxx Xxxxx XX backing out of space and hit OV 0.00 0.00 0
also backing
--------------------------------------------------------------------------------------------------------------------
2G932119 8/23/2001 Xx Xxxxx OV swerved into IV's lane 0.00 0.00 0
and hit him
--------------------------------------------------------------------------------------------------------------------
3B904247 08/28/01 vehicle needed to be 0 0 0
towed
--------------------------------------------------------------------------------------------------------------------
3J903351 8/30/2001 Xxx Fleugal IV hit by OV 0 0
--------------------------------------------------------------------------------------------------------------------
8/31/2001 Xxxxx OV pulled across IV lane of traffic 0.00 0.00 0
Xxxxxxxx and IV hit him
--------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------
Case # DOA Emp. Total Open/Closed
Name
---------------------------------------------------------------
2F910917 8/19/2000 Xxxx 30759 open
Xxxxx
---------------------------------------------------------------
3A070300 9/6/2000 Xxxxxxx 36014 open
Xxxxxxx
---------------------------------------------------------------
2G924952 10/18/2000 Xxxxxxx 20312 open
Xxxx
---------------------------------------------------------------
2f911984 12/19/2000 Xxxx 5116 OPEN
Xxxxxx
---------------------------------------------------------------
2A656474 3/8/2001 Xxxxxx 2227 open
Xxxxxx
---------------------------------------------------------------
2G805924 4/22/2001 Kooseeal 2047 open
Xxxxx
---------------------------------------------------------------
1K925071 5/8/2001 Xxxx 0 open
Xxxxxxxxxx
---------------------------------------------------------------
3A922588 5/11/2001 Xxxxxx 4261 open
Xxxxxxx
---------------------------------------------------------------
2F913066 5/13/2001 3422 OPEN
---------------------------------------------------------------
2F913067 5/13/2001 3827 OPEN
---------------------------------------------------------------
2B903735 5/24/2001 Xxxxxxxx 4355 open
Kalton
---------------------------------------------------------------
2F913148 5/24/2001 Xxxxx Xxxxx 1196 open
---------------------------------------------------------------
2F059813 05/27/01 Xxxxxx 3855 open
---------------------------------------------------------------
no claim made 5/31/2001 0 OPEN
---------------------------------------------------------------
2B903828 6/5/2001 Xxxxxxxxx 1081 open
Xxxxx
---------------------------------------------------------------
2F060030 06/15/01 Xxxxxx 0 open
---------------------------------------------------------------
1K926031 6/15/2001 Xxxx Xxxxxx 1191 open
---------------------------------------------------------------
3J903804 6/19/2001 Xxxxxx 0 open
Bridges
---------------------------------------------------------------
3A923070 6/28/2001 Xxxxx Xxxxx 0 open
---------------------------------------------------------------
2F913467 7/4/2001 Xxxxx 2045 open
XxXxxxxxxx
---------------------------------------------------------------
1k923754 7/7/2001 Xxxx 2047 open
Xxxxxxxxxx
---------------------------------------------------------------
2B904043 7/18/2001 Xxxxxx 1621 open
Xxxxx
---------------------------------------------------------------
2A925748 7/23/2001 Xxxxxx 111 open
Xxxx
---------------------------------------------------------------
2G931730 7/31/2001 Xxxxxx 6332 open
Xxxxxxxx
---------------------------------------------------------------
2A926101 8/15/2001 Torrey 0 open
Xxxxxx
---------------------------------------------------------------
2F913760 8/17/2001 Xxxxxx 0 open
Xxxxxxx
---------------------------------------------------------------
3J464499 8/18/2001 Xxxxx Xxxxxx 0 open
---------------------------------------------------------------
1K030921 8/22/2001 Xxxxxx Xxxxx 0 open
---------------------------------------------------------------
2G932119 8/23/2001 Xx Xxxxx 0 open
---------------------------------------------------------------
3B904247 08/28/01 0 open
---------------------------------------------------------------
3J903351 8/30/2001 Xxx Fleugal 0 open
---------------------------------------------------------------
8/31/2001 Xxxxx 0 open
Xxxxxxxx
---------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Case # DOA Emp. Description Amount Amount Amount
Name Paid Res. Rec.
--------------------------------------------------------------------------------------------------------------------
3A923732 9/6/2001 Xxxxx XX rearended by OV threatened with club 0 0 0
Xxxxxxxxx
--------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------
Case # DOA Emp. Total Open/Closed
Name
---------------------------------------------------------------
3A923732 9/6/2001 Xxxxx 0 open
Xxxxxxxxx
---------------------------------------------------------------
2.11 Washington State Gaming License.
2.12 (c) Current examinations or audits of any Company Returns:
Entity Audit Period(s) Type Waivers/Extension Status
------ --------------- ---- ----------------- ------
Federal 1998 Income Open
Utah 4/98-12/00 Sales & Use 1998 Open
1997-1999 Audit is finished
1998-2000 Income Sales & Waiting for
Indiana 1998-2000 Use Withholding 1997 auditor's report
Illinois 7/98 - 6/01 Sales & Use Commencing 10/02/01
2.12(d) December 1, 2000 employment agreement with Xxxxxxx X. Xxxxxxx, amended
July 31, 2001.
2.13(a) The following benefit programs are available to eligible employees:
o Corporate Employee Bonus Plan(1)
o GM/AGM Bonus Plan(1)
o Office Manager/Assistant Office Manager Bonus Plan(1)
o Kent Warehouse Bonus Plan(1)
o American Coin Merchandising, Inc. AD&D Plan(2)
o American Coin Merchandising, Inc. 401(k) Plan(2)
o Benefit Conversion at Separation(2)
o Bereavement Leave(3)
o American Coin Merchandising, Inc. Group Business Travel Accident
Plan(4)
o American Coin Merchandising, Inc. Flexible Benefits Plan(2)
o American Coin Merchandising, Inc., DBA Sugarloaf Creations
Medical, Dental and Vision Plan(2)
o Holiday Time Off(3)
o Jury Duty Leave/Witness Duty Leave(3)
o American Coin Merchandising, Inc. Life Plan(2)
o American Coin Merchandising, Inc. DBA Sugarloaf Creations Long
Term Disability Coverage(2)
o Non-FMLA Family and Medical Leave(3)
o FMLA Family and Medical Leave(3)
o Personal Leave(3)
o Military Leave(3)
o Recreational Activities(3)
o Sick Pay Benefits(3)
o American Coin Merchandising, Inc. Employee Stock Option Plan(5)
o American Coin Merchandising, Inc. Employee Stock Purchase
Plan(2)
o Vacation Benefits(3)
o Benefits Continuation COBRA(2)
o Voluntary Accidental Death and Dismemberment Benefits(2)
1 Pursuant to bonus plan document.
2 Pursuant to employee benefits documents.
3 Pursuant to employee handbook.
4 Pursuant to separate plan document.
5 Pursuant to Stock Option Plan documents.
6 Pursuant to application life insurance policy.
o Certain employees were grand-fathered into a voluntary New York Life
Optional Life Insurance Plan(6)
2.13(k) December 1, 2000 consulting agreement with Xxxx X. Xxxxxxxx, amended
July 31, 2001.
December 1, 2000 employment agreement with Xxxxxxx X. Xxxxxxx, amended
July 31, 2001.
December 1, 2000 employment agreement with W. Xxxx Xxxx, amended July
31, 2001.
In addition, all outstanding options under the Company Stock Option
Plans shall vest in full immediately prior to the Effective Time.
2.13(l) Employee information:
The following employees have employment agreements:
Xxxxxxx X. Xxxxxxx
W. Xxxx Xxxx
------------------------------------------------------------------------------------------------------------------------------------
OFFICE LAST NAME FIRST NAME POSITION DATE OF HIRE PAY SALARY HOURLY
BASIS RATE
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxxx Xxxxxxxx Accounting Clerk 9/20/99 Hourly 14.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxxxx Xxxxx Receiving Clerk 2/14/00 Hourly 14.75
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxxxx Xxxxxxx A/R specialist 8/1/01 Hourly 14.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxx Xxxxxxx Bookkeeper 2/1/99 Hourly 14.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxx Xxxxxxx Inventory Supervisor 6/8/99 Hourly 16.85
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxxx Xxxxxx Payroll & Corporate AP 1/10/00 Hourly 16.00
Specialist
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Xxxxxxxxx Xxxxxxx Commission Specialist 5/15/00 Hourly 14.50
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Shah Shalini Commission Specialist 5/21/01 Hourly 14.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Shipley Mary Receiving Clerk 11/10/00 Hourly 14.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Thorson Duchelle Payroll & Corporate AP 3/8/99 Hourly 16.00
Specialist
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Wesson Jennifer Contract Commission Coordinator 4/30/01 Hourly 15.00
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Fisher Lisa Receptionist 11/20/00 Hourly 11.50
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Robinson Robert Warehouse & Facilities Assistant 10/13/00 Hourly 11.50
------------------------------------------------------------------------------------------------------------------------------------
Human Resources Massa Yoko Human Resources Assistant 10/9/00 Hourly 13.00
------------------------------------------------------------------------------------------------------------------------------------
Human Resources Shepard Toby Benefits Assistant 1/27/97 Hourly 14.18
------------------------------------------------------------------------------------------------------------------------------------
IT Nebinski Vincent Network Support Technician 9/1/99 Hourly 16.83
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Gaul Tracy Product Assistant A 4/14/97 Hourly 13.30
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Whitten Holley Graphic Artist Intern 8/20/01 Hourly 12.00
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Williams Ian Graphic Artist Intern 4/16/01 Hourly 12.00
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Archuleta Jr. Leo Painter 6/15/01 Hourly 10.00
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Chamberlin Johnathan Lab Technician 7/6/99 Hourly 11.65
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Elmshaeuser Lance Service Tech 12/7/00 Hourly 10.57
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Garcia Jesus Service Tech 6/7/99 Hourly 13.50
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Garrison Troy Service Tech 1/17/01 Hourly 10.75
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Goleboski Mark Shipping/Logistics Clerk 6/4/01 Hourly 13.50
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Lopez Ignacio Parts & Warranty Specialist 1/15/01 Hourly 12.74
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Pratt Tyron Refurbishing Technician 3/15/01 Hourly 10.57
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Stevens Brett Service Tech 1/23/01 Hourly 11.07
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Wester Keith Painter 12/18/00 Hourly 15.86
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Yeager Therrin Paint Prep Tchnician 8/13/01 Hourly 12.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Dorn Brenda A/P Supervisor 12/8/99 Salary 35,000.16
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Doty Kim A/R & G/L Accountant 4/3/00 Salary 36,400.08
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Edic Kenneth Vice President & Controller 3/8/99 Salary 103,000.08
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Mantovani Karen Tax Compliance Manager 4/17/00 Salary 52,000.08
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING McCrady Eric Inventory & Reporting Manager 11/17/97 Salary 48,499.92
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING McWilliams Michele Tax Accountant 8/29/01 Salary 40,000.08
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Nix Betsy General Accounting & Banking 9/7/99 Salary 48,000.00
Manager
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Phillips Richard Commission Supervisor 9/13/00 Salary 45,000.00
------------------------------------------------------------------------------------------------------------------------------------
ACCOUNTING Smith Melissa Payroll/AP Supervisor 2/19/01 Salary 44,000.16
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Bridges Curtis Director of Loss Prevention 6/9/99 Salary 105,000.00
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Cash William Sr. Vice President & CFO 7/16/95 Salary 150,000.00
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Fagundo Randall President & CEO 6/1/89 Salary 250,000.08
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Garrison Bradford Wal-Mart Account Manager 9/5/94 Salary 50,400.00
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Meyers Joey Manager of Security Services 6/25/01 Salary 64,999.92
------------------------------------------------------------------------------------------------------------------------------------
CORPORATE Williamson Kara Exec. Secretary & Corp. Office 9/30/96 Salary 40,000.08
Manager
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
EAST ADMINISTRATION Ahrens Neatha Regional Operations Manager 11/4/96 Salary 38,000.16
------------------------------------------------------------------------------------------------------------------------------------
EAST ADMINISTRATION Levine Christopher Eastern Division Vice President 9/1/95 Salary 107,000.16
------------------------------------------------------------------------------------------------------------------------------------
EAST ADMINISTRATION Tankard Mark Field Operations Manager 7/27/98 Salary 50,000.16
------------------------------------------------------------------------------------------------------------------------------------
Human Resources Haeffner Sandra Sr. Human Resources Generalist 12/11/00 Salary 49,999.92
------------------------------------------------------------------------------------------------------------------------------------
Human Resources La Terra Loretta Benefits Manager 9/25/89 Salary 63,000.00
------------------------------------------------------------------------------------------------------------------------------------
Human Resources Shott Christopher Human Resources Manager 4/26/99 Salary 80,000.16
------------------------------------------------------------------------------------------------------------------------------------
IT Beck Caroline Programmer/Analyst 7/5/00 Salary 50,000.16
------------------------------------------------------------------------------------------------------------------------------------
IT Brauch Debra IT Advisor 9/1/95 Salary 41,594.64
------------------------------------------------------------------------------------------------------------------------------------
IT Fal Michael Programmer/Analyst 4/2/01 Salary 49,999.92
------------------------------------------------------------------------------------------------------------------------------------
IT Froehlich Susan Help Desk Supervisor 7/15/98 Salary 34,008.00
------------------------------------------------------------------------------------------------------------------------------------
IT Richards Bob Director of Information 7/1/99 Salary 105,000.00
Technology
------------------------------------------------------------------------------------------------------------------------------------
IT Sims Robert Network Administrator 4/1/99 Salary 70,000.08
------------------------------------------------------------------------------------------------------------------------------------
Key Accounts Chilton Randy VP of Key Accounts 6/1/98 Salary 108,000.00
------------------------------------------------------------------------------------------------------------------------------------
Key Accounts McCarthy Mary Key Account Coordinator 11/16/98 Salary 34,560.00
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Tutela Sondra Asset Manager 6/30/99 Salary 34,980.00
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS Walker Michael Director of Operations 6/10/98 Salary 56,000.16
------------------------------------------------------------------------------------------------------------------------------------
OPERATIONS White Britain VP of Operations 9/1/98 Salary 105,748.08
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Fiore Joseph VP of Purchasing 2/3/99 Salary 69,999.84
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Gerrish Linnaea VP of Import and Design 8/2/99 Salary 90,000.00
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Kaslon Robert Sr. VP of Merchandising 4/22/91 Salary 110,000.16
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT McNeill Jennifer Product Assistant B 8/20/01 Salary 28,000.08
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Sevalt James Director of Operations & 6/16/99 Salary 68,904.00
Training
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Smith Gregory Graphic Artist 7/16/98 Salary 43,999.92
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Stancec Catherine Assistant Buyer 2/17/00 Salary 40,992.00
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Woolfolk Dana Buyer 5/19/97 Salary 47,250.00
------------------------------------------------------------------------------------------------------------------------------------
PRODUCT Xiao Jing Assistant Buyer 10/27/00 Salary 39,999.84
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Marchese Donald Service Manager 9/10/98 Salary 55,000.08
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Morris Debra Office Manager 6/13/98 Salary 34,386.00
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Sample Eric Refurbishing Shop Manager 11/1/96 Salary 32,000.16
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Steiner Richard Refurbishing Technician 6/1/98 Salary 28,620.00
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Thompson Robert Corporate Service Manager 4/29/98 Salary 35,500.08
------------------------------------------------------------------------------------------------------------------------------------
S.M.I.L.E. Williamson Glen Director of S.M.I.L.E. 6/25/01 Salary 60,000.00
------------------------------------------------------------------------------------------------------------------------------------
WESTERN ADMINISTRATION Bartholomew Kenneth Western Division Vice President 11/23/94 Salary 130,000.08
------------------------------------------------------------------------------------------------------------------------------------
WESTERN ADMINISTRATION Nelson Mischelle Regional Operations Manager 9/1/95 Salary 40,999.92
------------------------------------------------------------------------------------------------------------------------------------
WESTERN SALES DIVISION Bollman Sherlin Sales Representative 6/1/98 Salary 27,000.00
------------------------------------------------------------------------------------------------------------------------------------
WESTERN SALES DIVISION Fluegal James Field Sales Representative 9/17/97 Salary 30,000.00
------------------------------------------------------------------------------------------------------------------------------------
WESTERN SALES DIVISION Staffa James Vice President of Sales 3/7/94 Salary 60,000.00
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
LAST FIRST ANNUAL
OFFICE NAME NAME TITLE DOH RATE SALARY
------------------------------------------------------------------------------------------------------------------------------------
ARIZONA
4 HOURLY/23 SALARY
ARIZONA Bald Margaret Cash Counter0 12/1/97 Hourly
ARIZONA Isley Dwight Part-Time Route Merchandiser 4/16/01 Hourly
ARIZONA Jarrett Shirley Part-Time Route Merchandiser 2/27/01 Hourly
ARIZONA Silva Carmen Part-Time Satellite Route Merch. 4/1/01 Hourly
ARIZONA Mangus J T Area General Manager 1/19/98 Salary 42,000.00
El Paso Satellite Devore John Co-General Manager 7/27/98 Salary 31,200.00
ARIZONA Eckerman James Co-General Manager 3/18/97 Salary 29,400.00
-----------------------------------------------------------------------------------
LAST FIRST HRLY COMMISSION
OFFICE NAME NAME RATE PLAN
-----------------------------------------------------------------------------------
ARIZONA
4 HOURLY/23 SALARY
ARIZONA Bald Margaret 9.50
ARIZONA Isley Dwight 9.00
ARIZONA Jarrett Shirley 7.50
ARIZONA Silva Carmen 8.00
ARIZONA Mangus J T
El Paso Satellite Devore John
ARIZONA Eckerman James
ARIZONA Lovato Frederick Commission Route Merchandiser 8/17/98 Salary
ARIZONA Morris Christopher Commission Route Merchandiser 1/4/99 Salary
ARIZONA Oliver Rick Commission Route Merchandiser 4/1/01 Salary
El Paso Satellite Rodriguez Martin Commission Route Merchandiser 10/3/97 Salary
ARIZONA Walther Curtis Commission Route Merchandiser 12/1/97 Salary
ARIZONA Stofer Aileen Office Manager 12/1/97 Salary 29,160.00
El Paso Satellite Dovalina Frank Route Merchandiser 3/3/00 Salary
ARIZONA Gray Tyese Route Merchandiser 7/15/98 Salary 12,000.00
New Mexico Satellite Hacker David Route Merchandiser 2/10/98 Salary
ARIZONA Housden Robert Route Merchandiser 6/13/98 Salary
ARIZONA Jacobs Shamar Route Merchandiser 5/11/01 Salary 19,200.00
ARIZONA Lovato Fred Route Merchandiser 1/15/01 Salary
ARIZONA Mason Janet Route Merchandiser 2/23/98 Salary 21,600.00
New Mexico Satellite Pruitt Richard Route Merchandiser 4/3/98 Salary
El Paso Satellite Sanchez Jose Route Merchandiser 5/30/96 Salary 21,000.00
ARIZONA Bornhoft David Sales Representative 12/1/97 Salary 28,020.00
ARIZONA Leverenz Dean Satellite Base Plus Comm. Rte. Merch. 3/27/97 Salary 18,000.00
ARIZONA Almada Mary Part-Time Satellite Comm. Rte. Merch. 4/1/01 Salary
ARIZONA Cervas Jeffrey Satellite Comm. Rte. Merch. 2/23/98 Salary
ARIZONA Stratman Gale Service Tech 7/10/00 Salary 21,000.00
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
CHICAGO
16 SALARY
CHICAGO Kitz David Area General Manager 10/23/00 Salary 55,000.08
CHICAGO Gomez Ofelia Cash Counter 12/18/00 Salary 19,200.00
CHICAGO Ford Anthony Co-General Manager 9/1/95 Salary 37,500.00
CHICAGO Broeker Roger Commission Route Merchandiser 4/1/99 Salary
CHICAGO Fiermuga Daniel Commission Route Merchandiser 9/23/97 Salary
CHICAGO Gil Jose Commission Route Merchandiser 11/12/99 Salary
CHICAGO Hertel Renee Commission Route Merchandiser 2/12/01 Salary
CHICAGO Von De Bur Maureen Office Manager 5/7/01 Salary 30,000.00
CHICAGO Chiovarie Barbara Route Manager 4/29/96 Salary 26,400.00
CHICAGO Dixon Byron Route Merchandiser 6/27/01 Salary 19,800.00
CHICAGO Hall Harold Route Merchandiser 9/11/00 Salary 19,200.00
CHICAGO Szala Wojciech Route Merchandiser 11/7/00 Salary 19,200.00
CHICAGO Baird John Satellite Comm. Rte. Merch. 7/1/96 Salary
CHICAGO Dringenberg John Satellite Comm. Rte. Merch. 10/25/99 Salary
CHICAGO Spencer Mark Satellite Route Merchandiser 9/1/99 Salary 16,800.00
CHICAGO Krosel Timothy Service Manager 8/28/00 Salary 33,000.00
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
CHARLOTTE
4 HOURLY / 17 SALARY
CHARLOTTE Holden Tonia Cash Counter 10/28/99 Hourly
CHARLOTTE Manning Sandra Cash Counter 7/11/01 Hourly
CHARLOTTE Holden Chriscynthia P/T Warehouse 8/1/01 Hourly
CHARLOTTE Riddick Jo Satellite Route Merchandiser 6/12/00 Hourly 19,760.00
CHARLOTTE Jankech Keith Area General Manager 1/28/99 Salary 55,000.08
CHARLOTTE Dugan Rodney Co-General Manager 9/5/96 Salary 37,000.08
CHARLOTTE Barefoot George Commission Route Merchandiser 2/9/01 Salary
CHARLOTTE Bell Wilford Commission Route Merchandiser 3/20/98 Salary
CHARLOTTE Guter Gerald Commission Route Merchandiser 10/20/00 Salary
CHARLOTTE Holek Peter Commission Route Merchandiser 8/1/00 Salary
CHARLOTTE Jenkins James Commission Route Merchandiser 8/9/99 Salary
CHARLOTTE Roe William Commission Route Merchandiser 1/29/01 Salary
CHARLOTTE McMath Cat Office Manager 3/6/00 Salary 32,000.16
CHARLOTTE Stanford Teresa Route Manager 8/19/98 Salary 25,500.00
CHARLOTTE Cain Jr. Willie Route Merchandiser 8/1/01 Salary 18,499.92
CHARLOTTE Meredith Richard Commission Route Merchandiser 1/2/01 Salary
CHARLOTTE Centea Sherrie Satellite Comm. Rte. Merch. 3/2/98 Salary
CHARLOTTE Griffin Susan Satellite Comm. Rte. Merch. 6/16/97 Salary
CHARLOTTE Tedesco Daniel Satellite Comm. Rte. Merch. 12/7/98 Salary
CHARLOTTE Whitlow Timothy Satellite Comm. Rte. Merch. 7/5/00 Salary
ARIZONA Lovato Frederick 7 percent commission
ARIZONA Morris Christopher 7 percent commission
ARIZONA Oliver Rick 7 percent commission
El Paso Satellite Rodriguez Martin 7 percent commission
ARIZONA Walther Curtis 6.5 percent commission
ARIZONA Stofer Aileen
El Paso Satellite Dovalina Frank 7 percent commission
ARIZONA Gray Tyese
New Mexico Satellite Hacker David 7 percent commission
ARIZONA Housden Robert 7 percent commission
ARIZONA Jacobs Shamar
ARIZONA Lovato Fred 7 percent commission
ARIZONA Mason Janet 2 percent commission
New Mexico Satellite Pruitt Richard 7 percent commission
El Paso Satellite Sanchez Jose
ARIZONA Bornhoft David 6.5 percent commission
ARIZONA Leverenz Dean 2 percent commission
ARIZONA Almada Mary 10 percent commission
ARIZONA Cervas Jeffrey 8.5 percent commission
ARIZONA Stratman Gale
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
CHICAGO
16 SALARY
CHICAGO Kitz David
CHICAGO Gomez Ofelia
CHICAGO Ford Anthony
CHICAGO Broeker Roger 7 percent commission
CHICAGO Fiermuga Daniel 7 percent commission
CHICAGO Gil Jose 7 percent commission
CHICAGO Hertel Renee 7 percent commission
CHICAGO Von De Bur Maureen
CHICAGO Chiovarie Barbara
CHICAGO Dixon Byron
CHICAGO Hall Harold
CHICAGO Szala Wojciech
CHICAGO Baird John 7 percent commission
CHICAGO Dringenberg John 7 percent commission
CHICAGO Spencer Mark 2 percent commission
CHICAGO Krosel Timothy
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
CHARLOTTE
4 HOURLY / 17 SALARY
CHARLOTTE Holden Tonia 10.10
CHARLOTTE Manning Sandra 9.50
CHARLOTTE Holden Chriscynthia 9.00
CHARLOTTE Riddick Jo 9.50 2 percent commission P/T
CHARLOTTE Jankech Keith
CHARLOTTE Dugan Rodney
CHARLOTTE Barefoot George 7 percent commission
CHARLOTTE Bell Wilford 7 percent commission
CHARLOTTE Guter Gerald 7 percent commission
CHARLOTTE Holek Peter 7 percent commission
CHARLOTTE Jenkins James 7 percent commission
CHARLOTTE Roe William 7 percent commission
CHARLOTTE McMath Cat
CHARLOTTE Stanford Teresa
CHARLOTTE Cain Jr. Willie
CHARLOTTE Meredith Richard 7 percent commission
CHARLOTTE Centea Sherrie 7 percent commission
CHARLOTTE Griffin Susan 7 percent commission
CHARLOTTE Tedesco Daniel 7 percent commission
CHARLOTTE Whitlow Timothy 7 percent commission
CHARLOTTE Anglin Christopher Service Manager 6/16/00 Salary 28,620.00
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
DENVER
10 HOURLY / 30 SALARY
DENVER Salazar Michael Cash Counter 6/1/99 Hourly
DENVER Taylor Amanda Cash Counter 6/8/01 Hourly
DENVER Griffith Carol Merchandiser Floater/Office Asst 8/1/01 Hourly
DENVER Cale Candice Office Assistant 10/11/99 Hourly
DENVER Davis Denise Part-Time Office Manager 7/7/98 Hourly
DENVER Lemmon Ruth Route Merchandiser 5/30/01 Hourly
DENVER Yowell Bruce Route Merchandiser 7/5/00 Hourly
DENVER Harrington Jane Satellite Base Plus Comm. Rte. Merch. 3/19/01 Hourly
DENVER Melott Walter Satellite Route Merchandiser 7/26/96 Hourly
DENVER Richards Darryl Service Tech 3/2/98 Hourly
DENVER Amend Andrea Area General Manager 2/28/94 Salary 55,000.08
DENVER Smith Steve Assistant Manager 1/26/96 Salary 28,704.00
DENVER Bryson John Commission Route Merchandiser 10/9/00 Salary
DENVER Campbell Craig Commission Route Merchandiser 4/16/01 Salary
DENVER Eikmeier Sally Commission Route Merchandiser 1/2/01 Salary
DENVER Lepore Douglas Commission Route Merchandiser 7/15/98 Salary
DENVER Thompson Ada Commission Route Merchandiser 9/27/00 Salary
DENVER Wagner Robert Commission Route Merchandiser 5/8/00 Salary
DENVER Trobec Jacquelyn Manager In Training 6/18/01 Salary 36,999.84
DENVER Aragon Daniel Office Manager 7/3/98 Salary 27,300.00
DENVER Bratrsovsky Cyril Part-Time Plus Comm. Rte. Merch. 1/26/01 Salary 10,704.00
DENVER Cotner Sally Route Manager 9/1/95 Salary
DENVER Everhart Walter Route Manager 5/28/98 Salary 28,200.00
DENVER Jensen Joshua Route Manager 7/1/98 Salary 28,356.00
DENVER Swallow Donald Route Manager 9/1/95 Salary 26,400.00
DENVER Wynia Mike Commission Route Merchandiser 2/3/97 Salary 0.00
DENVER Foreman Marki Route Merchandiser 6/10/98 Salary
DENVER Swallow Jeffrey Route Merchandiser 9/1/95 Salary
DENVER Gray Beverly Satellite Comm. Rte. Merch. 4/15/99 Salary
DENVER Trujillo Susan Satellite Comm. Rte. Merch. 2/12/01 Salary
DENVER DeVries David Satellite Route Merchandiser 7/24/00 Salary
DENVER Doucette Steve Satellite Route Merchandiser 9/11/00 Salary
DENVER Limb Terry Satellite Route Merchandiser 5/16/96 Salary
DENVER Mendoza Jaime Satellite Base Plus Comm Route 11/20/97 Salary 17,100.00
Merchandiser
DENVER Prough Kevin Satellite Route Merchandiser 7/26/99 Salary
DENVER Sabbagh Glenda Satellite Route Merchandiser 5/10/99 Salary 15,000.00
DENVER Trainer Gary Satellite Route Merchandiser 11/22/99 Salary
DENVER Seitz Donald Service Manager 11/17/97 Salary 29,000.16
DENVER Szemcsak Gary Service Manager 3/2/98 Salary 25,999.92
DENVER Fushimi Bob Warehouse Manager 4/20/98 Salary 25,200.00
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GEORGIA
3 HOURLY / 15 SALARY
GEORGIA Colwell Jodi Cash Counter 3/19/01 Hourly
GEORGIA Upton Vivian Part-Time Plus Comm. Rte. Merch. 11/3/97 Hourly
GEORGIA Cunningham Douglas Satellite Base Plus Comm. Rte. Merch. 9/16/98 Hourly
GEORGIA Hart Matthew Area General Manager 7/14/97 Salary 49,999.92
GEORGIA Dewitt Vernon Assistant Manager 4/7/97 Salary 31,999.92
GEORGIA Kendrick Jerre Commission Route Merchandiser 5/4/98 Salary
GEORGIA Morgan Anthony Commission Route Merchandiser 8/19/97 Salary
GEORGIA Patel Farouk Commission Route Merchandiser 8/7/97 Salary
GEORGIA Ambrose Anne-Marie Regional Office Manager 11/14/97 Salary 34,992.00
GEORGIA Guthrie Alfred Route Manager 7/23/96 Salary 24,996.00
GEORGIA Johnston Homer Route Manager 9/1/95 Salary 24,500.16
GEORGIA James Donald Route Merchandiser 6/8/01 Salary 21,600.00
GEORGIA Shaw Ronald Route Merchandiser 6/25/01 Salary 21,600.00
GEORGIA Topps Glen Route Merchandiser 6/4/01 Salary 21,600.00
GEORGIA Nichols Glenda Satellite Comm. Rte. Merch. 4/6/98 Salary
GEORGIA Reynolds Kacey Satellite Comm. Rte. Merch. 6/25/98 Salary
GEORGIA Torrence Jerry Satellite Comm. Rte. Merch. 8/31/98 Salary
CHARLOTTE Anglin Christopher
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DENVER
10 HOURLY / 30 SALARY
DENVER Salazar Michael 10.50
DENVER Taylor Amanda 10.00
DENVER Griffith Carol 11.00
DENVER Cale Candice 11.00
DENVER Davis Denise 11.00
DENVER Lemmon Ruth 8.50
DENVER Yowell Bruce 11.00
DENVER Harrington Jane 7.50 2 percent commission
DENVER Melott Walter 10.00
DENVER Richards Darryl 11.00
DENVER Amend Andrea
DENVER Smith Steve
DENVER Bryson John 7.5 percent commission
DENVER Campbell Craig 7.5 percent commission
DENVER Eikmeier Sally 7.5 percent commission
DENVER Lepore Douglas 6.5 percent commission
DENVER Thompson Ada 6.5 percent commission
DENVER Wagner Robert 6.5 percent commission
DENVER Trobec Jacquelyn
DENVER Aragon Daniel
DENVER Bratrsovsky Cyril 2 percent commission
DENVER Cotner Sally 6.5 percent commission
DENVER Everhart Walter
DENVER Jensen Joshua
DENVER Swallow Donald
DENVER Wynia Mike 7 percent commission
DENVER Foreman Marki 6.5 percent commission
DENVER Swallow Jeffrey 6.5 percent commission
DENVER Gray Beverly 7.5 percent commission
DENVER Trujillo Susan 6.5 percent commission
DENVER DeVries David 7 percent commission
DENVER Doucette Steve 6.5 percent commission
DENVER Limb Terry 7 percent commission
DENVER Mendoza Jaime 2 percent commission
DENVER Prough Kevin 6.5 percent commission
DENVER Sabbagh Glenda
DENVER Trainer Gary 7.5 percent commission
DENVER Seitz Donald
DENVER Szemcsak Gary
DENVER Fushimi Bob
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GEORGIA
3 HOURLY / 15 SALARY
GEORGIA Colwell Jodi 9.00
GEORGIA Upton Vivian 7.50 2 percent commission
GEORGIA Cunningham Douglas 7.50 2 percent commission P/T
GEORGIA Hart Matthew
GEORGIA Dewitt Vernon
GEORGIA Kendrick Jerre 7 percent commission
GEORGIA Morgan Anthony 7 percent commission
GEORGIA Patel Farouk 7 percent commission
GEORGIA Ambrose Anne-Marie
GEORGIA Guthrie Alfred
GEORGIA Johnston Homer
GEORGIA James Donald
GEORGIA Shaw Ronald
GEORGIA Topps Glen
GEORGIA Nichols Glenda 7 percent commission
GEORGIA Reynolds Kacey 7 percent commission
GEORGIA Torrence Jerry 7 percent commission
GEORGIA Jenkins Bradley Service Manager 10/1/97 Salary 30,000.00
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GREAT PLAINS
6 HOURLY / 12 SALARY
GREAT PLAINS Mendoza Cherrie Cash Counter 10/17/00 Hourly
GREAT PLAINS Ransom Melissa Office Assistant 2/1/00 Hourly
GREAT PLAINS Eversdyke Kristy Redemption Merchandiser 8/13/01 Hourly
GREAT PLAINS Conkle Nathan Route Collector 8/20/01 Hourly
GREAT PLAINS Thomas Shawn Route Collector 11/16/00 Hourly
GREAT PLAINS Clarke Shane Service Tech 8/22/01 Hourly
GREAT PLAINS Rose Michelle Amusement Manager 6/1/98 Salary 29,500.08
GREAT PLAINS Leonard William Base Plus Comm. Rte. Merch. 5/14/01 Salary 15,600.00
GREAT PLAINS Noller Melvin Base Plus Comm. Rte. Merch. 10/9/98 Salary 15,600.00
GREAT PLAINS Toepfer Rhonda Base Plus Comm. Rte. Merch. 6/6/00 Salary 16,800.00
GREAT PLAINS Emert Roxane Commission Route Merchandiser 6/14/99 Salary
GREAT PLAINS Howard Jeanine Commission Route Merchandiser 6/30/98 Salary
GREAT PLAINS Pearce Meghan Commission Route Merchandiser 3/27/00 Salary
GREAT PLAINS Gillespie Jeff General Manager 11/7/00 Salary 40,008.00
GREAT PLAINS Rogalski Robyn Merchandise Manager 9/22/99 Salary 26,500.08
GREAT PLAINS Berg Sandra Office Manager 8/10/99 Salary 25,040.16
GREAT PLAINS Snyder Michelle Satellite Comm. Rte. Merch. 6/13/00 Salary 16,800.00
GREAT PLAINS Harp Billy Service Manager 3/30/01 Salary 33,000.00
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HOUSTON
2 HOURLY / 13 SALARY
HOUSTON Duggins Kyoko Cash Counter 2/14/00 Hourly
HOUSTON Brown Frances Route Merchandiser 8/31/01 Hourly
HOUSTON Coker Glen Area General Manager 9/16/98 Salary 53,250.00
HOUSTON Harvey Connie Commission Route Merchandiser 9/17/96 Salary
HOUSTON Loud Erick Commission Route Merchandiser 4/2/98 Salary
HOUSTON Martinez San-Juanita Commission Route Merchandiser 7/16/98 Salary
HOUSTON Myint Patricia Commission Route Merchandiser 3/18/98 Salary
HOUSTON Perkins David Commission Route Merchandiser 1/15/01 Salary
HOUSTON Price Steve Commission Route Merchandiser 1/18/01 Salary
HOUSTON Williams Wendell Commission Route Merchandiser 10/19/98 Salary
HOUSTON Wiser Brandi Office Manager 10/17/00 Salary 27,000.00
HOUSTON Webb John Route Manager 11/1/00 Salary 26,012.16
HOUSTON Ferguson Kenneth Route Merchandiser 1/8/01 Salary
HOUSTON Landrum Kenneth Route Merchandiser 9/5/00 Salary 20,000.16
HOUSTON Medrano Steven Service Tech 1/27/00 Salary 26,250.00
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INLAND
2 HOURLY / 11 SALARY
INLAND Foss Debra Office Assistant 6/13/98 Hourly
INLAND Grimm Michael Service Tech 4/7/97 Hourly
INLAND Bigelow Ronald Base Plus Comm. Rte. Merch. 9/5/98 Salary 19,800.00
INLAND Farr William Commission Route Merchandiser 10/19/98 Salary
INLAND Fisher Daniel Commission Route Merchandiser 3/9/98 Salary
INLAND Freiberg Terry Commission Route Merchandiser 7/28/98 Salary
INLAND Lynch Gary Commission Route Merchandiser 7/22/97 Salary
INLAND Fink Don General Manager 2/15/00 Salary 35,000.16
INLAND Johnston Deborah Office Manager 7/6/94 Salary 24,804.00
INLAND Peterson Anthony Satellite Base Plus Comm. Rte. Merch. 10/18/99 Salary 16,440.00
INLAND Costanzo Joseph Satellite Comm. Rte. Merch. 6/13/98 Salary
INLAND Moore Bradley Satellite Comm. Rte. Merch. 5/25/99 Salary
INLAND Weaver Gerald Satellite Comm. Rte. Merch. 6/13/98 Salary
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JACKSONVILLE
3 HOURLY / 12 SALARY
JACKSONVILLE Beggs Tammy Office Assistant 2/15/01 Hourly
JACKSONVILLE Maveety Adam Part-Time Route Merchandiser 10/9/00 Hourly
JACKSONVILLE Cranford Julius Satellite Part-Time Plus Comm. Rte. 10/9/00 Hourly
Merch.
GEORGIA Jenkins Bradley
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GREAT PLAINS
6 HOURLY / 12 SALARY
GREAT PLAINS Mendoza Cherrie 9.00
GREAT PLAINS Ransom Melissa 9.75
GREAT PLAINS Eversdyke Kristy 8.00
GREAT PLAINS Conkle Nathan 8.00
GREAT PLAINS Thomas Shawn 8.00
GREAT PLAINS Clarke Shane 8.00
GREAT PLAINS Rose Michelle
GREAT PLAINS Leonard William 2 percent commission
GREAT PLAINS Noller Melvin 2 percent commission
GREAT PLAINS Toepfer Rhonda 2 percent commission
GREAT PLAINS Emert Roxane 7 percent commission
GREAT PLAINS Howard Jeanine 7 percent commission
GREAT PLAINS Pearce Meghan 7 percent commission
GREAT PLAINS Gillespie Jeff
GREAT PLAINS Rogalski Robyn
GREAT PLAINS Berg Sandra
GREAT PLAINS Snyder Michelle 2 percent commission
GREAT PLAINS Harp Billy
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HOUSTON
2 HOURLY / 13 SALARY
HOUSTON Duggins Kyoko 10.00
HOUSTON Brown Frances 8.50
HOUSTON Coker Glen
HOUSTON Harvey Connie 6.5 percent commission
HOUSTON Loud Erick 7 percent commission
HOUSTON Martinez San-Juanita 7.5 percent commission
HOUSTON Myint Patricia 7.5 percent commission
HOUSTON Perkins David 7 percent commission
HOUSTON Price Steve 7 percent commission
HOUSTON Williams Wendell 7 percent commission
HOUSTON Wiser Brandi
HOUSTON Webb John
HOUSTON Ferguson Kenneth 7 percent commission
HOUSTON Landrum Kenneth
HOUSTON Medrano Steven
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INLAND
2 HOURLY / 11 SALARY
INLAND Foss Debra 9.00
INLAND Grimm Michael 10.44
INLAND Bigelow Ronald 2 percent commission
INLAND Farr William 7 percent commission
INLAND Fisher Daniel 7 percent commission
INLAND Freiberg Terry 7 percent commission
INLAND Lynch Gary 7 percent commission
INLAND Fink Don
INLAND Johnston Deborah
INLAND Peterson Anthony 2 percent commission
INLAND Costanzo Joseph 7 percent commission
INLAND Moore Bradley 7 percent commission
INLAND Weaver Gerald 7 percent commission
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JACKSONVILLE
3 HOURLY / 12 SALARY
JACKSONVILLE Beggs Tammy 10.00
JACKSONVILLE Maveety Adam 10.00
JACKSONVILLE Cranford Julius 8.00 2 percent commission P/T
JACKSONVILLE Serger Patrick Assistant Manager 6/2/97 Salary 26,508.00
JACKSONVILLE Gamble Denise Commission Route Merchandiser 4/27/00 Salary
JACKSONVILLE Lamm Michael Commission Route Merchandiser 12/1/98 Salary
Patrick
JACKSONVILLE Partain Joseph Commission Route Merchandiser 8/5/97 Salary
JACKSONVILLE Reynolds Stephen Commission Route Merchandiser 7/27/94 Salary
JACKSONVILLE Wilson Ronald Commission Route Merchandiser 4/1/96 Salary
JACKSONVILLE Giddens James General Manager 12/8/98 Salary 42,000.00
JACKSONVILLE Gurrola Mary Office Manager 3/10/99 Salary 23,460.00
JACKSONVILLE Brewer Steven Route Merchandiser 3/23/01 Salary 21,600.00
JACKSONVILLE Lebon Jean Keaton Route Merchandiser 5/9/01 Salary 19,200.00
JACKSONVILLE Carter Michael Satellite Comm. Rte. Merch. 9/5/95 Salary
JACKSONVILLE Kidd Barry Satellite Comm. Rte. Merch. 10/17/00 Salary
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KANSAS CITY
4 HOURLY / 17 SALARY
KANSAS CITY Edwards Haidi Office Assistant 11/29/99 Hourly
KANSAS CITY Henehan Mary Office Assistant 3/12/01 Hourly
KANSAS CITY Bates Karen Redemption/Game Room Clerk 6/1/98 Hourly
KANSAS CITY Sortore Robert Route Merchandiser 6/25/01 Hourly
KANSAS CITY Zielke Vickie Assistant Manager 3/30/98 Salary 27,030.00
KANSAS CITY Evatt James Commission Route Merchandiser 12/12/94 Salary
KANSAS CITY Key Lawrence Commission Route Merchandiser 4/15/96 Salary
KANSAS CITY Elliott Garret Location Supervisor 6/1/98 Salary 25,999.92
KANSAS CITY Sward Sean Location Supervisor 6/1/98 Salary 17,499.84
KANSAS CITY Welch Betty Office Manager 8/22/01 Salary 28,999.92
KANSAS CITY Carter Diana Route Manager 8/15/96 Salary 26,004.00
KANSAS CITY Joyce Konrad Route Manager 2/4/94 Salary 24,195.60
KANSAS CITY Jacques Barbara Route Merchandiser 8/16/01 Salary 15,000.00
KANSAS CITY Smith Jasen Route Merchandiser 7/31/01 Salary 20,400.00
KANSAS CITY Mackey Michael Satellite Base Plus Comm. Rte. Merch. 12/1/00 Salary
KANSAS CITY Sanders Delisa Satellite Base Plus Comm. Rte. Merch. 9/20/99 Salary 15,600.00
KANSAS CITY Eiken David Satellite Route Merchandiser 11/5/99 Salary
KANSAS CITY Saunders Michael Satellite Route Merchandiser 11/5/99 Salary
KANSAS CITY Welch Jerry Satellite Route Merchandiser 2/22/99 Salary
KANSAS CITY Wilson Gary Satellite Route Merchandiser 1/27/97 Salary
KANSAS CITY Johnson Michael Service Tech 7/30/98 Salary 28,000.08
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LOUISIANA
2 HOURLY / 12 SALARY
LOUISIANA Stringer Rose Office Assistant 3/9/01 Hourly
LOUISIANA Palmer Billy Route Merchandiser 6/13/01 Hourly
LOUISIANA Hackler Michael General Manager 8/1/97 Salary 40,000.08
LOUISIANA Darby Melody Office Manager 3/24/00 Salary 22,999.92
LOUISIANA Babin Thomas Route Merchandiser 8/1/97 Salary
LOUISIANA Gaston Melvin Route Merchandiser 7/7/98 Salary
LOUISIANA Helm Kevin Route Merchandiser 12/28/98 Salary
LOUISIANA Hopwood Clifford Route Merchandiser 8/1/97 Salary
LOUISIANA Schlegel Howard Route Merchandiser 12/14/98 Salary 27,000.00
LOUISIANA Cooksey Roger Satellite Route Merchandiser 10/12/98 Salary
LOUISIANA Courville Ina Satellite Route Merchandiser 10/22/97 Salary
LOUISIANA Montague Charles Satellite Route Merchandiser 8/1/97 Salary
LOUISIANA Trahan Johnny Satellite Route Merchandiser 6/23/00 Salary
LOUISIANA Tervalon Harry Service Tech 5/29/00 Salary 22,000.08
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LOUISVILLE
4 HOURLY / 15 SALARY
LOUISVILLE Mitchell Dorothea Cash Counter 9/26/00 Hourly
LOUISVILLE Chase Carolyn Office Assistant 5/30/01 Hourly
LOUISVILLE Hawkins Holly Office Assistant 8/11/98 Hourly
LOUISVILLE Schnell Peggy Office Manager 9/1/95 Hourly
LOUISVILLE Rea Rick Assistant Manager 6/3/96 Salary 27,000.00
LOUISVILLE Aldridge Charles Base Plus Comm. Rte. Merch. 5/23/00 Salary 15,000.00
LOUISVILLE Johnson Jessica Commission Route Merchandiser 1/29/01 Salary
JACKSONVILLE Serger Patrick
JACKSONVILLE Gamble Denise 7 percent commission
JACKSONVILLE Lamm Michael 6.5 percent commission
Patrick
JACKSONVILLE Partain Joseph 7 percent commission
JACKSONVILLE Reynolds Stephen 7 percent commission
JACKSONVILLE Wilson Ronald 7 percent commission
JACKSONVILLE Giddens James
JACKSONVILLE Gurrola Mary
JACKSONVILLE Brewer Steven
JACKSONVILLE Lebon Jean Keaton
JACKSONVILLE Carter Michael 7 percent commission
JACKSONVILLE Kidd Barry 7 percent commission
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KANSAS CITY
4 HOURLY / 17 SALARY
KANSAS CITY Edwards Haidi 7.30
KANSAS CITY Henehan Mary 9.80
KANSAS CITY Bates Karen 10.00
KANSAS CITY Sortore Robert 8.00
KANSAS CITY Zielke Vickie
KANSAS CITY Evatt James 7 percent commission
KANSAS CITY Key Lawrence 7 percent commission
KANSAS CITY Elliott Garret
KANSAS CITY Sward Sean
KANSAS CITY Welch Betty
KANSAS CITY Carter Diana
KANSAS CITY Joyce Konrad 2 percent commission
KANSAS CITY Jacques Barbara
KANSAS CITY Smith Jasen
KANSAS CITY Mackey Michael 7 percent commission
KANSAS CITY Sanders Delisa 2 percent commission
KANSAS CITY Eiken David 7 percent commission
KANSAS CITY Saunders Michael 7 percent commission
KANSAS CITY Welch Jerry 7 percent commission
KANSAS CITY Wilson Gary 7 percent commission
KANSAS CITY Johnson Michael
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LOUISIANA
2 HOURLY / 12 SALARY
LOUISIANA Stringer Rose 8.00
LOUISIANA Palmer Billy 10.00
LOUISIANA Hackler Michael
LOUISIANA Darby Melody
LOUISIANA Babin Thomas 7 percent commission
LOUISIANA Gaston Melvin 6.5 percent commission
LOUISIANA Helm Kevin 6.5 percent commission
LOUISIANA Hopwood Clifford 7 percent commission
LOUISIANA Schlegel Howard
LOUISIANA Cooksey Roger 7 percent commission
LOUISIANA Courville Ina 7 percent commission
LOUISIANA Montague Charles 7 percent commission
LOUISIANA Trahan Johnny 7 percent commission
LOUISIANA Tervalon Harry
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LOUISVILLE
4 HOURLY / 15 SALARY
LOUISVILLE Mitchell Dorothea 10.00
LOUISVILLE Chase Carolyn 9.00
LOUISVILLE Hawkins Holly 10.00
LOUISVILLE Schnell Peggy 14.00
LOUISVILLE Rea Rick
LOUISVILLE Aldridge Charles 2 percent commission
LOUISVILLE Johnson Jessica 7 percent commission
LOUISVILLE Johnson Brian Commission Route Merchandiser 1/2/01 Salary
LOUISVILLE Zimmerman Chad Commission Route Merchandiser 5/9/00 Salary
LOUISVILLE Warren Randall General Manager 9/1/95 Salary 40,008.00
LOUISVILLE Triplett Dana Route Manager 10/18/00 Salary 26,000.16
LOUISVILLE Kang John Base Plus Comm. Route Merchandiser 10/13/00 Salary 14,400.00
LOUISVILLE Rake Janda Route Merchandiser 4/17/00 Salary
LOUISVILLE Brown Tonya Satellite Base Plus Comm. Rte. Merch. 5/26/98 Salary 16,200.00
LOUISVILLE Kamphaus Robert Satellite Base Plus Comm. Rte. Merch. 3/4/96 Salary 18,000.00
LOUISVILLE Milligan Steven Satellite Comm. Rte. Merch. 1/12/96 Salary
LOUISVILLE Shade John Satellite Comm. Rte. Merch. 9/27/96 Salary
LOUISVILLE Hiemstra Peter Satellite Base Plus Comm. Route 5/5/99 Salary 15,600.00
Merchandiser
LOUISVILLE Macke Darrell Satellite Base Plus Comm. Route 7/24/00 Salary 15,000.00
Merchandiser
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MICHIANA
4 HOURLY / 22 SALARY
MICHIANA Masarik Kathy Cash Counter 3/26/01 Hourly
MICHIANA Rhines Sandra Office Assistant 11/19/98 Hourly
MICHIANA McGinn Michael Service Tech 5/15/00 Hourly
MICHIANA Nofzinger Jeremy Warehouse 7/24/01 Hourly
MICHIANA Strauss John Assistant Manager 4/30/01 Salary 28,000.08
MICHIANA Fredricks James Base Plus Comm. Rte. Merch. 3/17/97 Salary 15,995.76
MICHIANA Sabin Stephen Base Plus Comm. Rte. Merch. 7/26/99 Salary 15,000.00
MICHIANA Conlin Ryan Commission Route Merchandiser 6/17/99 Salary
MICHIANA Lewis Kathleen Commission Route Merchandiser 4/13/99 Salary
MICHIANA Mock Carrie Commission Route Merchandiser 6/26/00 Salary
MICHIANA Rivers Jermaine Commission Route Merchandiser 12/29/00 Salary
MICHIANA Wisler Robert Commission Route Merchandiser 7/27/99 Salary
MICHIANA Albers Mark General Manager 11/28/97 Salary 40,008.00
MICHIANA Stubblefield Caryn Office Manager 1/6/99 Salary 24,000.00
MICHIANA Bilbey Matthew Route Manager 4/19/99 Salary 24,504.00
MICHIANA Barrett Donald Route Merchandiser 4/9/01 Salary 18,720.72
MICHIANA Cole Ronald Route Merchandiser 4/30/01 Salary 20,800.80
MICHIANA Leyh Fred Route Merchandiser 1/17/01 Salary 8,839.44
MICHIANA Moses Jon Route Merchandiser 12/10/97 Salary
MICHIANA Scott Paul Route Merchandiser 8/3/00 Salary 20,800.80
MICHIANA Worthington Katherine Route Merchandiser 12/4/00 Salary
MICHIANA Coburn Benjamin Satellite Comm. Rte. Merch. 3/13/00 Salary
MICHIANA Horne Louise Satellite Comm. Rte. Merch. 1/11/99 Salary
MICHIANA Marshall Linda Satellite Comm. Rte. Merch. 4/5/99 Salary
MICHIANA Sabin Stephen Satellite Comm. Rte. Merch. 7/26/99 Salary
MICHIANA Stevens Kathleen Satellite Comm. Rte. Merch. 7/11/00 Salary
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MID-ATLANTIC
3 HOURLY / 16 SALARY
MID-ATLANTIC Janis Chris Cash Counter 1/2/01 Hourly
MID-ATLANTIC Deisher Karen Office Assistant 9/9/96 Hourly
MID-ATLANTIC Carter John Satellite Route Merchandiser 8/20/01 Hourly
MID-ATLANTIC Dumbach Edward Area General Manager 5/20/96 Salary 60,000.00
MID-ATLANTIC Heicklen Jay Co-General Manager 11/12/98 Salary 35,004.00
MID-ATLANTIC Guzley John Commission Route Merchandiser 2/19/01 Salary
MID-ATLANTIC Lehrman Charles Commission Route Merchandiser 9/23/96 Salary
MID-ATLANTIC Strunk Jason Commission Route Merchandiser 3/5/01 Salary
MID-ATLANTIC Xander Charles Commission Route Merchandiser 11/2/98 Salary
MID-ATLANTIC Clark Jr. John Field Sales Representative 4/2/01 Salary 33,000.00
MID-ATLANTIC Lucci-
Daubermann Gina Regional Office Manager 2/12/01 Salary 30,000.00
MID-ATLANTIC Hunger Kirk Route Merchandiser 7/30/01 Salary 22,879.92
MID-ATLANTIC Aldrich Ellen Satellite Comm. Rte. Merch. 6/1/00 Salary
MID-ATLANTIC Faulk Derek Satellite Comm. Rte. Merch. 6/8/98 Salary
MID-ATLANTIC Lopuhovsky Janet Satellite Comm. Route Merchandiser 9/15/97 Salary
LOUISVILLE Johnson Brian 7 percent commission
LOUISVILLE Zimmerman Chad 7 percent commission
LOUISVILLE Warren Randall
LOUISVILLE Triplett Dana
LOUISVILLE Kang John 2 percent commission
LOUISVILLE Rake Janda 6.5 percent commission
LOUISVILLE Brown Tonya 2 percent commission
LOUISVILLE Kamphaus Robert 2 percent commission
LOUISVILLE Milligan Steven 7 percent commission
LOUISVILLE Shade John 7.5 percent commission
LOUISVILLE Hiemstra Peter 2 percent commission
LOUISVILLE Macke Darrell 2 percent commission
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MICHIANA
4 HOURLY / 22 SALARY
MICHIANA Masarik Kathy 9.00
MICHIANA Rhines Sandra 10.00
MICHIANA McGinn Michael 11.00
MICHIANA Nofzinger Jeremy 10.00
MICHIANA Strauss John
MICHIANA Fredricks James 2 percent commission
MICHIANA Sabin Stephen 2 percent commission
MICHIANA Conlin Ryan 7 percent commission
MICHIANA Lewis Kathleen 7 percent commission
MICHIANA Mock Carrie 7 percent commission
MICHIANA Rivers Jermaine 7 percent commission
MICHIANA Wisler Robert 7 percent commission
MICHIANA Albers Mark
MICHIANA Stubblefield Caryn
MICHIANA Bilbey Matthew
MICHIANA Barrett Donald
MICHIANA Cole Ronald
MICHIANA Leyh Fred
MICHIANA Moses Jon 7 percent commission
MICHIANA Scott Paul
MICHIANA Worthington Katherine 7 percent commission
MICHIANA Coburn Benjamin 7 percent commission
MICHIANA Horne Louise 7 percent commission
MICHIANA Marshall Linda 7 percent commission
MICHIANA Sabin Stephen 7 percent commission
MICHIANA Stevens Kathleen 7 percent commission
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MID-ATLANTIC
3 HOURLY / 16 SALARY
MID-ATLANTIC Janis Chris 9.00
MID-ATLANTIC Deisher Karen 10.00
MID-ATLANTIC Carter John 10.00
MID-ATLANTIC Dumbach Edward
MID-ATLANTIC Heicklen Jay
MID-ATLANTIC Guzley John 7 percent commission
MID-ATLANTIC Lehrman Charles 7 percent commission
MID-ATLANTIC Strunk Jason 7 percent commission
MID-ATLANTIC Xander Charles 7 percent commission
MID-ATLANTIC Clark Jr. John
MID-ATLANTIC Lucci-
Daubermann Gina
MID-ATLANTIC Hunger Kirk
MID-ATLANTIC Aldrich Ellen 7 percent commission
MID-ATLANTIC Faulk Derek 7 percent commission
MID-ATLANTIC Lopuhovsky Janet 7 percent commission
MID-ATLANTIC Quigley Robert Satellite Route Merchandiser 11/9/98 Salary
MID-ATLANTIC Rampulla Reba Satellite Route Merchandiser 4/21/97 Salary
MID-ATLANTIC Rauschkolb Ruth Satellite Route Merchandiser 10/30/00 Salary 21,000.00
MID-ATLANTIC Hartman Scott Service Manager 2/17/97 Salary 29,004.00
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MINNESOTA
5 HOURLY / 8 SALARY
MINNESOTA Emich Shari Base Plus Comm. Rte. Merch. 10/26/98 Hourly
MINNESOTA Thomas Paul Part-Time Plus Comm. Rte. Merch. 1/31/00 Hourly
MINNESOTA Carpenter Julie Part-Time Route Merchandiser 7/26/01 Hourly
MINNESOTA Mansavage Shelley Route Merchandiser 6/8/01 Hourly
MINNESOTA Osmond Michael Route Merchandiser 6/25/01 Hourly
MINNESOTA Gage Sharon Base Plus Comm. Rte. Merch. 12/4/00 Salary 17,100.00
MINNESOTA Gates Julie Base Plus Comm. Rte. Merch. 12/1/00 Salary 17,100.00
MINNESOTA Macgibbon Neal Base Plus Comm. Rte. Merch. 7/16/98 Salary 26,808.00
MINNESOTA Leblanc Kelli Office Manager 3/5/98 Salary 27,240.00
MINNESOTA Weldon Stephen Route Merchandiser 8/20/01 Salary 19,200.00
MINNESOTA Heinzen Jason Satellite Base Plus Comm. Rte. Merch. 6/30/97 Salary 17,100.00
MINNESOTA Jorgenson James Satellite Base Plus Comm. Rte. Merch. 12/13/99 Salary 15,600.00
MINNESOTA Poehls Mary Satellite Base Plus Comm. Rte. Merch. 2/26/98 Salary 17,100.00
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MONTANA
4 HOURLY / 10 SALARY
MONTANA Hubbell Peggy Part-Time Route Merchandiser 3/22/01 Hourly
MONTANA Parsons Michele Part-Time Route Merchandiser 1/4/01 Hourly
MONTANA Bone Michael Route Merchandiser 7/10/01 Hourly
MONTANA Ingels Donald Satellite Part-Time Plus Comm. Rte. 9/17/98 Hourly
Merch.
MONTANA Betz Elise Commission Route Merchandiser 9/7/00 Salary
MONTANA Hosley Fred Commission Route Merchandiser 3/1/99 Salary
MONTANA Smith Robert General Manager 11/9/94 Salary 34,000.08
MONTANA Morris Sonja Office Manager 8/12/96 Salary 22,000.08
MONTANA Brownell Kenneth Route Manager 2/2/98 Salary 26,796.00
MONTANA Wilda Kevin Route Merchandiser 5/16/01 Salary
MONTANA Hofmann Michael Satellite Base Plus Comm. Rte. Merch. 7/1/97 Salary 14,400.00
MONTANA Lee Juli Satellite Base Plus Comm. Rte. Merch. 6/19/99 Salary 14,400.00
MONTANA Strand Gary Satellite Base Plus Comm. Rte. Merch. 1/3/97 Salary 14,400.00
MONTANA Brown Richard Satellite Comm. Rte. Merch. 8/28/98 Salary
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MISSOURI
2 HOURLY / 14 SALARY
MISSOURI McCutchen Natasha Cash Counter 8/22/01 Hourly
MISSOURI Wallace Gloria Cash Counter 2/20/98 Hourly
MISSOURI McCullough Karen Assistant Manager 9/1/95 Salary 29,160.00
MISSOURI Crimes Carolyn Commission Route Merchandiser 2/25/98 Salary
MISSOURI Dial Michael Commission Route Merchandiser 9/13/99 Salary
MISSOURI Harris Brian Commission Route Merchandiser 8/4/97 Salary
MISSOURI Holman Richard Commission Route Merchandiser 1/3/96 Salary
MISSOURI Melton Jeanie Commission Route Merchandiser 9/27/96 Salary
MISSOURI Dysart Bill General Manager 2/9/96 Salary 46,000.08
MISSOURI Pavlige Teresa Office Manager 11/14/96 Salary 26,901.84
MISSOURI Edwards John Satellite Base Plus Comm. Rte. Merch. 1/8/01 Salary 17,400.00
MISSOURI Ausmus James Satellite Comm. Rte. Merch. 8/11/98 Salary
MISSOURI Beard Robert Satellite Comm. Rte. Merch. 2/2/01 Salary
MISSOURI Milks Kent Satellite Comm. Rte. Merch. 2/3/97 Salary
MISSOURI Garland Brenda Satellite Comm. Rte. Merch. 11/7/96 Salary
MID-ATLANTIC Quigley Robert 7 percent commission
MID-ATLANTIC Rampulla Reba 7 percent commission
MID-ATLANTIC Rauschkolb Ruth
MID-ATLANTIC Hartman Scott
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MINNESOTA
5 HOURLY / 8 SALARY
MINNESOTA Emich Shari 10.00 2 percent commission
MINNESOTA Thomas Paul 10.00 2 percent commission
MINNESOTA Carpenter Julie 9.00
MINNESOTA Mansavage Shelley 10.00
MINNESOTA Osmond Michael 10.00
MINNESOTA Gage Sharon 2 percent commission
MINNESOTA Gates Julie 2 percent commission
MINNESOTA Macgibbon Neal 2 percent commission
MINNESOTA Leblanc Kelli
MINNESOTA Weldon Stephen
MINNESOTA Heinzen Jason 2 percent commission
MINNESOTA Jorgenson James 2 percent commission
MINNESOTA Poehls Mary 2 percent commission
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MONTANA
4 HOURLY / 10 SALARY
MONTANA Hubbell Peggy 9.00
MONTANA Parsons Michele 9.00
MONTANA Bone Michael 7.50
MONTANA Ingels Donald 6.00 2 percent commission
MONTANA Betz Elise 7 percent commission
MONTANA Hosley Fred 7.5 percent commission
MONTANA Smith Robert
MONTANA Morris Sonja
MONTANA Brownell Kenneth
MONTANA Wilda Kevin 7.5 percent commission
MONTANA Hofmann Michael 6.92 2 percent commission
MONTANA Lee Juli 2 percent commission
MONTANA Strand Gary 2 percent commission
MONTANA Brown Richard 7 percent commission
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MISSOURI
2 HOURLY / 14 SALARY
MISSOURI McCutchen Natasha 7.50
MISSOURI Wallace Gloria 8.25
MISSOURI McCullough Karen
MISSOURI Crimes Carolyn 7 percent commission
MISSOURI Dial Michael 7 percent commission
MISSOURI Harris Brian 7 percent commission
MISSOURI Holman Richard 7 percent commission
MISSOURI Melton Jeanie 7 percent commission
MISSOURI Dysart Bill
MISSOURI Pavlige Teresa
MISSOURI Edwards John 2 percent commission
MISSOURI Ausmus James 7 percent commission
MISSOURI Beard Robert 7 percent commission
MISSOURI Milks Kent 7 percent commission
MISSOURI Garland Brenda 7 percent commission
MISSOURI Ruenpohl Frederich Service Manager 2/25/98 Salary 29,118.00
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NEBRASKA
6 HOURLY / 21 SALARY
NEBRASKA Balkovec Bonnie Cash Counter 9/15/99 Hourly
NEBRASKA Miller Carol Cash Counter 3/19/01 Hourly
NEBRASKA Schulte Jeananne Cash Counter 12/20/00 Hourly
NEBRASKA Campbell Derk Satellite Part-Time Plus Comm. Rte. 11/23/98 Hourly
Merch.
NEBRASKA Kahler Peggy Satellite Part-Time Plus Comm. Rte. 6/12/98 Hourly
Merch.
NEBRASKA Speakman Roger Service Tech 7/30/01 Hourly
NEBRASKA Hatcher Venus Commission Route Merchandiser 11/16/98 Salary
NEBRASKA Horn Roberta Commission Route Merchandiser 6/28/96 Salary
NEBRASKA Kettler John Commission Route Merchandiser 9/25/96 Salary
NEBRASKA Setlak Edward Commission Route Merchandiser 9/1/95 Salary
NEBRASKA Stokes Robert Commission Route Merchandiser 5/24/99 Salary
NEBRASKA Shaw James General Manager 11/1/95 Salary 42,000.00
NEBRASKA Sramek Vicky Office Manager 5/8/00 Salary 26,599.92
NEBRASKA Comer Buddy Route Manager 12/4/00 Salary 24,999.84
NEBRASKA Lindsey Michael Route Manager 9/26/00 Salary 27,000.00
NEBRASKA Wilson David Route Manager 4/29/98 Salary 23,200.08
NEBRASKA Andersen Timothy Route Merchandiser 2/12/01 Salary
NEBRASKA Beller Dennis Route Merchandiser 5/7/01 Salary 21,000.00
NEBRASKA Dace Timothy Route Merchandiser 8/8/01 Salary 19,999.92
NEBRASKA Kreklau La Verne Route Merchandiser 5/18/01 Salary 19,999.92
NEBRASKA Pohl Ronald Route Merchandiser 4/16/01 Salary 19,999.92
NEBRASKA Wheelock Robert Route Merchandiser 3/16/01 Salary 19,999.92
NEBRASKA Hicks William Satellite Base Plus Comm. Rte. Merch. 8/11/97 Salary 16,800.00
NEBRASKA Pommer James Satellite Base Plus Comm. Rte. Merch. 10/6/97 Salary 19,200.00
NEBRASKA Pefferman Thomas Satellite Comm. Rte. Merch. 2/14/00 Salary
NEBRASKA Young Randy Satellite Comm. Rte. Merch. 11/29/99 Salary
NEBRASKA Leko Anton Service Manager 9/1/95 Salary 34,080.00
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NORTHERN CALIFORNIA
4 HOURLY / 7 SALARY
NORTHERN CALIFORNIA Woznick Rosalie Cash Counter 10/27/00 Hourly
NORTHERN CALIFORNIA Stafford Ardella Part-Time Plus Comm. Rte. Merch. 4/4/01 Hourly
NORTHERN CALIFORNIA Cyphers Sherleen Part-Time Satellite Route Merch. 7/14/00 Hourly
NORTHERN CALIFORNIA Hill Brandon Satellite Part-Time Plus Comm. Rte. 7/31/00 Hourly
Merch.
NORTHERN CALIFORNIA Duran Arthur Commission Route Merchandiser 2/24/99 Salary
NORTHERN CALIFORNIA Skidmore Michael Commission Route Merchandiser 6/4/01 Salary
NORTHERN CALIFORNIA Lynch Gregory General Manager 9/25/97 Salary 43,999.92
NORTHERN CALIFORNIA Harrison Janet Office Manager 2/7/00 Salary 27,000.00
NORTHERN CALIFORNIA Tatum Carl Satellite Base Plus Comm. Rte. Merch. 1/18/99 Salary 18,600.00
NORTHERN CALIFORNIA Borsari John Satellite Comm. Rte. Merch. 9/17/98 Salary
NORTHERN CALIFORNIA Lewis Thomas Satellite Comm. Rte. Merch. 9/17/98 Salary
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NASHVILLE
6 HOURLY / 21 SALARY
NASHVILLE Sauceda Jeanette Cash Counter 10/27/99 Hourly
NASHVILLE Mahoney Mary Office Assistant 8/26/96 Hourly
NASHVILLE Wetzstein Virginia Office Assistant 7/18/01 Hourly
NASHVILLE Brewer Jeremy Part-Time Route Merchandiser 8/1/01 Hourly
MISSOURI Ruenpohl Frederich
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NEBRASKA
6 HOURLY / 21 SALARY
NEBRASKA Balkovec Bonnie 9.75
NEBRASKA Miller Carol 8.50
NEBRASKA Schulte Jeananne 8.50
NEBRASKA Campbell Derk 7.50 2 percent commission P/T
NEBRASKA Kahler Peggy 8.00 2 percent commission P/T
NEBRASKA Speakman Roger 10.58
NEBRASKA Hatcher Venus 6.5 percent commission
NEBRASKA Horn Roberta 6.5 percent commission
NEBRASKA Kettler John 7 percent commission
NEBRASKA Setlak Edward 7 percent commission
NEBRASKA Stokes Robert 7 percent commission
NEBRASKA Shaw James
NEBRASKA Sramek Vicky
NEBRASKA Comer Buddy
NEBRASKA Lindsey Michael
NEBRASKA Wilson David
NEBRASKA Andersen Timothy 7 percent commission
NEBRASKA Beller Dennis
NEBRASKA Dace Timothy
NEBRASKA Kreklau La Verne
NEBRASKA Pohl Ronald
NEBRASKA Wheelock Robert
NEBRASKA Hicks William 2 percent commission
NEBRASKA Pommer James 2 percent commission
NEBRASKA Pefferman Thomas 7 percent commission
NEBRASKA Young Randy 7.5 percent commission
NEBRASKA Leko Anton
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NORTHERN CALIFORNIA
4 HOURLY / 7 SALARY
NORTHERN CALIFORNIA Woznick Rosalie 10.00
NORTHERN CALIFORNIA Stafford Ardella 8.00
NORTHERN CALIFORNIA Cyphers Sherleen 15.00
NORTHERN CALIFORNIA Hill Brandon 15.00 2 percent commission P/T
NORTHERN CALIFORNIA Duran Arthur 7 percent commission
NORTHERN CALIFORNIA Skidmore Michael 7 percent commission
NORTHERN CALIFORNIA Lynch Gregory
NORTHERN CALIFORNIA Harrison Janet
NORTHERN CALIFORNIA Tatum Carl 2 percent commission
NORTHERN CALIFORNIA Borsari John 7 percent commission
NORTHERN CALIFORNIA Lewis Thomas 7 percent commission
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NASHVILLE
6 HOURLY / 21 SALARY
NASHVILLE Sauceda Jeanette 9.50
NASHVILLE Mahoney Mary 9.50
NASHVILLE Wetzstein Virginia 8.00
NASHVILLE Brewer Jeremy 10.00
NASHVILLE Gouge Jamie Part-Time Route Merchandiser 8/7/00 Hourly
NASHVILLE Howe Margie Route Merchandiser 12/1/00 Hourly
NASHVILLE Peveler Jeffrey Area General Manager 7/16/97 Salary 55,000.08
NASHVILLE Chaffin Houston Co-General Manager 4/28/97 Salary 31,999.92
NASHVILLE Johnston Daniel Commission Route Merchandiser 1/22/01 Salary
NASHVILLE Jones Rhonda Commission Route Merchandiser 12/8/97 Salary
NASHVILLE MacRae Sherwood Commission Route Merchandiser 3/8/99 Salary
NASHVILLE Morris Lenora Commission Route Merchandiser 8/30/99 Salary
NASHVILLE Murray Wynona Commission Route Merchandiser 5/15/97 Salary
NASHVILLE Dykes Stacey Office Manager 5/20/97 Salary 27,000.00
NASHVILLE Bishop Torrey Route Manager 6/21/01 Salary 27,000.00
NASHVILLE Collins Charles Route Manager 8/24/98 Salary 26,400.00
NASHVILLE Regg Elaine Route Manager 8/31/98 Salary 22,999.92
NASHVILLE Hardin Gloria Base Plus Comm. Route Merchandiser 1/15/01 Salary 15,600.00
NASHVILLE Weathington Cathy Satellite Base Plus Comm. Rte. Merch. 12/1/00 Salary 15,600.00
NASHVILLE Campbell Edward Satellite Comm. Rte. Merch. 10/14/96 Salary
NASHVILLE Collins Robin Satellite Comm. Rte. Merch. 11/1/98 Salary
NASHVILLE Davis William Satellite Comm. Rte. Merch. 5/18/98 Salary
NASHVILLE Grimes Robert Satellite Comm. Rte. Merch. 11/29/99 Salary
NASHVILLE Mason Charles Satellite Comm. Rte. Merch. 8/28/01 Salary
NASHVILLE Poore David Satellite Comm. Rte. Merch. 8/30/99 Salary
NASHVILLE Sweeney Curtis Satellite Comm. Rte. Merch. 1/27/00 Salary
NASHVILLE Ives Jeremy Service Manager 11/17/97 Salary 25,500.00
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NEW YORK
5 HOURLY / 13 SALARY
NEW YORK Bulger Jeffrey Cash Counter 3/14/01 Hourly
NEW YORK Gutowski Lawrence Part-Time Plus Comm. Rte. Merch. 3/1/01 Hourly
NEW YORK Wildman Richard Part-Time Plus Comm. Rte. Merch. 4/19/00 Hourly
NEW YORK Buckley Peter Part-Time Route Merchandiser 6/27/01 Hourly
NEW YORK Devoe Robert Part-Time Route Merchandiser 3/5/01 Hourly
NEW YORK Barber Casee Assistant Manager 5/19/97 Salary 32,000.16
NEW YORK Hayle Gary Base Plus Comm. Rte. Merch. 1/16/01 Salary 18,300.00
NEW YORK Reynolds David Commission Route Merchandiser 6/1/99 Salary
NEW YORK Waters Michael Commission Route Merchandiser 11/4/98 Salary
NEW YORK McGinnis Charles General Manager 1/16/01 Salary 43,999.92
NEW YORK Krusen Winston Route Manager 11/9/98 Salary 26,500.08
NEW YORK Alessi Jack Route Merchandiser 8/28/00 Salary
NEW YORK Battey John Route Merchandiser 3/29/01 Salary 25,000.08
NEW YORK De Leo Carlo Route Merchandiser 2/24/01 Salary 19,999.92
NEW YORK Guckert Joseph Route Merchandiser 4/12/01 Salary 25,000.08
NEW YORK McChesney Margaret Route Merchandiser 6/25/01 Salary 21,000.00
NEW YORK Sneed Richard Route Merchandiser 1/30/01 Salary 24,999.84
NEW YORK Spellman John Satellite Base Plus Comm. Rte. Merch. 6/7/00 Salary 16,200.00
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OKLAHOMA
4 HOURLY / 23 SALARY
OKLAHOMA Ewald Shannon Office Assistant 8/20/00 Hourly
OKLAHOMA Gatlin Catherine Office Assistant 5/12/98 Hourly
OKLAHOMA Yandell Virginia Office Assistant 4/17/01 Hourly
OKLAHOMA Williams Lloyd Route Merchandiser 4/5/00 Hourly
OKLAHOMA Berryhill William Assistant Manager 5/6/98 Salary 27,504.00
OKLAHOMA Adame Rojelio Base Plus Comm. Rte. Merch. 1/9/01 Salary 15,600.00
OKLAHOMA Adams Carol Base Plus Comm. Rte. Merch. 7/17/00 Salary 15,600.00
OKLAHOMA Harrison Robin Base Plus Comm. Rte. Merch. 11/16/00 Salary 15,600.00
Braudway
OKLAHOMA Scott Marquita Bulk Manager 7/28/98 Salary 24,000.00
OKLAHOMA Berryhill Donald Commission Route Merchandiser 3/4/99 Salary
OKLAHOMA Daniels Douglas Commission Route Merchandiser 7/25/00 Salary
OKLAHOMA Gray Duane Commission Route Merchandiser 2/25/98 Salary
OKLAHOMA Hester Penny Commission Route Merchandiser 7/24/00 Salary
OKLAHOMA Jones Rita Commission Route Merchandiser 6/29/99 Salary
OKLAHOMA Kennedy Steven Commission Route Merchandiser 8/10/99 Salary
OKLAHOMA Langford Pamela Commission Route Merchandiser 11/13/00 Salary
NASHVILLE Gouge Jamie 9.00
NASHVILLE Howe Margie 9.00
NASHVILLE Peveler Jeffrey
NASHVILLE Chaffin Houston
NASHVILLE Johnston Daniel 7 percent commission
NASHVILLE Jones Rhonda 7 percent commission
NASHVILLE MacRae Sherwood 7 percent commission
NASHVILLE Morris Lenora 7 percent commission
NASHVILLE Murray Wynona 7 percent commission
NASHVILLE Dykes Stacey
NASHVILLE Bishop Torrey
NASHVILLE Collins Charles
NASHVILLE Regg Elaine
NASHVILLE Hardin Gloria 2 percent commission
NASHVILLE Weathington Cathy 2 percent commission
NASHVILLE Campbell Edward 7 percent commission
NASHVILLE Collins Robin 7 percent commission
NASHVILLE Davis William 7 percent commission
NASHVILLE Grimes Robert 7 percent commission
NASHVILLE Mason Charles 7 percent commission
NASHVILLE Poore David 7 percent commission
NASHVILLE Sweeney Curtis 7.5 percent commission
NASHVILLE Ives Jeremy
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NEW YORK
5 HOURLY / 13 SALARY
NEW YORK Bulger Jeffrey 8.50
NEW YORK Gutowski Lawrence 8.50 2 percent commission
NEW YORK Wildman Richard 10.00 2 percent commission
NEW YORK Buckley Peter 10.00
NEW YORK Devoe Robert 10.00
NEW YORK Barber Casee
NEW YORK Hayle Gary 2 percent commission
NEW YORK Reynolds David 7 percent commission
NEW YORK Waters Michael 7 percent commission
NEW YORK McGinnis Charles
NEW YORK Krusen Winston
NEW YORK Alessi Jack 7 percent commission
NEW YORK Battey John
NEW YORK De Leo Carlo
NEW YORK Guckert Joseph
NEW YORK McChesney Margaret
NEW YORK Sneed Richard
NEW YORK Spellman John 2 percent commission
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OKLAHOMA
4 HOURLY / 23 SALARY
OKLAHOMA Ewald Shannon 8.50
OKLAHOMA Gatlin Catherine 8.50
OKLAHOMA Yandell Virginia 8.25
OKLAHOMA Williams Lloyd 9.00
OKLAHOMA Berryhill William
OKLAHOMA Adame Rojelio 2 percent commission
OKLAHOMA Adams Carol 2 percent commission
OKLAHOMA Harrison Robin 2 percent commission
Braudway
OKLAHOMA Scott Marquita 2 percent commission
OKLAHOMA Berryhill Donald 7 percent commission
OKLAHOMA Daniels Douglas 7 percent commission
OKLAHOMA Gray Duane 7 percent commission
OKLAHOMA Hester Penny 7 percent commission
OKLAHOMA Jones Rita 7 percent commission
OKLAHOMA Kennedy Steven 7 percent commission
OKLAHOMA Langford Pamela 7 percent commission
OKLAHOMA Page Brandon Commission Route Merchandiser 5/19/98 Salary
OKLAHOMA Parker Cindy Commission Route Merchandiser 5/7/01 Salary
OKLAHOMA Test John Commission Route Merchandiser 7/6/98 Salary
OKLAHOMA Wages Erin Commission Route Merchandiser 11/30/00 Salary
OKLAHOMA Williams Eric Commission Route Merchandiser 9/12/98 Salary
OKLAHOMA Wyatt Cindy Commission Route Merchandiser 4/19/00 Salary
OKLAHOMA Kullich Eugene General Manager 11/10/97 Salary 55,008.00
OKLAHOMA Calia Shari Office Manager 8/21/98 Salary 27,036.00
OKLAHOMA Hutchison David Route Manager 1/5/98 Salary 31,500.00
OKLAHOMA Ely Dennis Satellite Route Merchandiser 1/8/98 Salary 26,220.00
OKLAHOMA Stalnaker Richard Service Tech 12/15/97 Salary 24,000.00
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OREGON
2 HOURLY / 19 SALARY
OREGON Monfort Wendi Cash Counter 10/21/99 Hourly
OREGON Moore Rita Part-Time Route Merchandiser 8/28/01 Hourly
OREGON Turnquist Timothy Area General Manager 3/2/98 Salary 54,000.00
OREGON Blades William Assistant Manager 3/30/98 Salary 31,999.92
OREGON Hull Christine Base Plus Comm. Rte. Merch. 5/30/01 Salary 12,600.00
OREGON Stoller Ted Base Plus Comm. Rte. Merch. 10/31/00 Salary 16,560.00
OREGON Goodhue Marjoree Commission Route Merchandiser 3/1/99 Salary
OREGON Osterkamp Kevin Commission Route Merchandiser 5/3/99 Salary
OREGON Prehn Teresa Commission Route Merchandiser 11/7/00 Salary
OREGON Baisch Maxine Office Manager 11/3/99 Salary 27,300.00
OREGON Olson Bonita Route Manager 6/15/98 Salary 16,200.00
OREGON Beedle Kim Route Merchandiser 6/22/00 Salary
OREGON Elder Garren Route Merchandiser 1/7/00 Salary
OREGON Harris Michael Route Merchandiser 8/13/01 Salary 19,800.00
OREGON Landon Tammera Route Merchandiser 4/26/00 Salary
OREGON Mayfield Ryan Route Merchandiser 5/9/01 Salary 19,800.00
OREGON Moore Edgar Route Merchandiser 6/29/01 Salary 15,000.00
OREGON Armstrong Robert Satellite Comm. Rte. Merch. 6/13/98 Salary
OREGON Brown George Satellite Comm. Rte. Merch. 6/13/98 Salary
OREGON Eddington Linda Satellite Route Merchandiser 1/7/00 Salary
OREGON James David Service Manager 6/20/00 Salary 25,200.00
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ORLANDO
1 HOURLY / 18 SALARY
ORLANDO Hamlin Dennis Warehouse 3/20/00 Hourly
ORLANDO Walker Tynisa Cash Counter 6/18/98 Hourly
ORLANDO Garza Albert Area General Manager 6/13/98 Salary 55,008.00
ORLANDO McCune Clarence Assistant Manager 6/13/98 Salary 29,500.08
ORLANDO Neal Charles Assistant Manager 6/13/98 Salary 28,500.00
ORLANDO Mackes Brian Base Plus Comm. Rte. Merch. 5/1/01 Salary 18,000.00
ORLANDO Motassim Abdel Hay Co-General Manager 4/16/01 Salary 31,999.92
ORLANDO Craig Stephen Commission Route Merchandiser 6/13/98 Salary
ORLANDO Marajh Neil Commission Route Merchandiser 9/9/99 Salary
ORLANDO Menzel John Commission Route Merchandiser 7/7/98 Salary
ORLANDO Randlov Mark Commission Route Merchandiser 2/19/01 Salary
ORLANDO Wilkins Vickey Commission Route Merchandiser 1/2/01 Salary
ORLANDO Brito Alicia Field Sales Representative 2/1/01 Salary 25,000.08
ORLANDO Hurst Georgia Office Assistant 11/1/99 Salary 20,400.00
ORLANDO Hartzell Karen Office Manager 7/23/01 Salary 23,000.16
ORLANDO Suarez Miguel Route Merchandiser 3/1/01 Salary
ORLANDO Gobin Kooseeal Satellite Comm. Rte. Merch. 6/10/96 Salary
ORLANDO Ricciardi Steven Satellite Comm. Rte. Merch. 10/25/00 Salary
ORLANDO Trapp Mary Satellite Comm. Rte. Merch. 2/21/00 Salary
ORLANDO Bowling Nancy Satellite Route Merchandiser 9/8/99 Salary
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PITTSBURGH
1 HOURLY / 20 SALARY
PITTSBURGH Ledonne Blanche Cash Counter 12/18/00 Hourly
PITTSBURGH Fridley Gary Assistant Manager 9/1/97 Salary 30,000.00
PITTSBURGH O'Leary Donovan Assistant Manager 8/1/01 Salary 33,000.00
PITTSBURGH Sluka Christopher Assistant Manager 4/11/00 Salary 27,600.00
PITTSBURGH Beckwith Benjamin Commission Route Merchandiser 3/13/00 Salary
OKLAHOMA Page Brandon 7 percent commission
OKLAHOMA Parker Cindy 7 percent commission
OKLAHOMA Test John 7 percent commission
OKLAHOMA Wages Erin 7.5 percent commission
OKLAHOMA Williams Eric 7 percent commission
OKLAHOMA Wyatt Cindy 7 percent commission
OKLAHOMA Kullich Eugene
OKLAHOMA Calia Shari
OKLAHOMA Hutchison David
OKLAHOMA Ely Dennis
OKLAHOMA Stalnaker Richard
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OREGON
2 HOURLY / 19 SALARY
OREGON Monfort Wendi 11.00
OREGON Moore Rita 10.00
OREGON Turnquist Timothy
OREGON Blades William
OREGON Hull Christine 2 percent commission
OREGON Stoller Ted 2 percent commission
OREGON Goodhue Marjoree 6.5 percent commission
OREGON Osterkamp Kevin 6.5 percent commission
OREGON Prehn Teresa 7 percent commission
OREGON Baisch Maxine
OREGON Olson Bonita 6.5 percent commission
OREGON Beedle Kim 6.5 percent commission
OREGON Elder Garren 7.5 percent commission
OREGON Harris Michael
OREGON Landon Tammera 7 percent commission
OREGON Mayfield Ryan
OREGON Moore Edgar
OREGON Armstrong Robert 7.5 percent commission
OREGON Brown George 7.5 percent commission
OREGON Eddington Linda 7.5 percent commission
OREGON James David
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ORLANDO
1 HOURLY / 18 SALARY
ORLANDO Hamlin Dennis 8.00
ORLANDO Walker Tynisa 7.25
ORLANDO Garza Albert
ORLANDO McCune Clarence
ORLANDO Neal Charles
ORLANDO Mackes Brian 2 percent commission
ORLANDO Motassim Abdel Hay
ORLANDO Craig Stephen 7 percent commission
ORLANDO Marajh Neil 7 percent commission
ORLANDO Menzel John 7 percent commission
ORLANDO Randlov Mark 7 percent commission
ORLANDO Wilkins Vickey 7 percent commission
ORLANDO Brito Alicia
ORLANDO Hurst Georgia
ORLANDO Hartzell Karen
ORLANDO Suarez Miguel 7 percent commission
ORLANDO Gobin Kooseeal 7 percent commission
ORLANDO Ricciardi Steven 7 percent commission
ORLANDO Trapp Mary 7 percent commission
ORLANDO Bowling Nancy 7 percent commission
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PITTSBURGH
1 HOURLY / 20 SALARY
PITTSBURGH Ledonne Blanche 7.50
PITTSBURGH Fridley Gary
PITTSBURGH O'Leary Donovan
PITTSBURGH Sluka Christopher
PITTSBURGH Beckwith Benjamin 7 percent commission
PITTSBURGH Ninehouser James Commission Route Merchandiser 12/1/00 Salary
PITTSBURGH Taylor Eleanor Office Manager 7/1/99 Salary 24,000.00
PITTSBURGH Weaverling Michael Route Manager 8/4/97 Salary 25,200.00
PITTSBURGH Austin Linda Lee Route Merchandiser 9/5/00 Salary
PITTSBURGH Calaba Sr. George Route Merchandiser 6/1/01 Salary 20,400.00
PITTSBURGH Holmes Patrick Base Plus Route Merchandiser 2/19/01 Salary 15,600.00
PITTSBURGH Masters Gary Route Merchandiser 7/19/99 Salary
PITTSBURGH Wallace Sylvester Route Merchandiser 10/1/97 Salary
PITTSBURGH Kossman Terry Satellite Base Plus Comm. Rte. Merch. 4/7/99 Salary 15,600.00
PITTSBURGH Summerfield Nancy Satellite Base Plus Comm. Rte. Merch. 4/6/00 Salary 12,000.00
PITTSBURGH Collins Richard Satellite Comm. Rte. Merch. 3/3/00 Salary
PITTSBURGH Collett Connie Satellite Route Merchandiser 10/12/98 Salary
PITTSBURGH Hedgecock Penny Satellite Comm. Rte. Merch. 1/26/98 Salary
PITTSBURGH McCoy Charlene Satellite Route Merchandiser 7/7/97 Salary 10,800.00
PITTSBURGH Miller Jay Satellite Comm. Rte. Merch. 4/10/00 Salary
PITTSBURGH Sullivan Sydney Satellite Comm. Rte. Merch. 6/30/99 Salary
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SAN ANTONIO
4 HOURLY / 13 SALARY
SAN ANTONIO Garcia Maria Cash Counter 6/28/99 Hourly
SAN ANTONIO Martinez Leticia Cash Counter 6/14/99 Hourly
SAN ANTONIO Estrada David Route Merchandiser 1/22/98 Hourly
SAN ANTONIO Trevino Humberto Route Merchandiser 8/21/01 Hourly
SAN ANTONIO Contreras Joey Commission Route Merchandiser 2/12/01 Salary
SAN ANTONIO Perry Lavella General Manager 7/5/01 Salary 37,999.92
SAN ANTONIO Apaez Olivia Office Manager 1/21/98 Salary 25,000.08
SAN ANTONIO Garcia Jose Route Manager 4/15/98 Salary 25,000.08
SAN ANTONIO Rodriguez Alfredo Route Manager 10/27/98 Salary 24,000.00
SAN ANTONIO Hernandez Paul Route Merchandiser 6/21/00 Salary
SAN ANTONIO Shipp Anne Route Merchandiser 9/7/00 Salary
SAN ANTONIO Rodriguez Juan Satellite Comm. Rte. Merch. 11/6/00 Salary
SAN ANTONIO Briseno Victor Satellite Route Merchandiser 5/19/98 Salary
SAN ANTONIO Marrou Brandon Satellite Route Merchandiser 8/8/00 Salary
SAN ANTONIO Marrou Lee Satellite Route Merchandiser 6/19/00 Salary
SAN ANTONIO Urrabazo Leroy Satellite Route Merchandiser 4/12/99 Salary
SAN ANTONIO Villarreal Victor Satellite Route Merchandiser 12/1/98 Salary
SAN ANTONIO Diaz John Service Manager 5/8/00 Salary 30,500.16
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SOUTHERN CALIFORNIA
5 HOURLY / 17 SALARY
SOUTHERN CALIFORNIA Weimer Shannon Office Assistant 7/21/98 Hourly
SOUTHERN CALIFORNIA Garcia Linda Route Merchandiser 7/24/01 Hourly
SOUTHERN CALIFORNIA Logsdon Maurice Satellite Part-Time Plus Comm. Rte. 7/9/01 Hourly
Merch.
SOUTHERN CALIFORNIA Wootton Brenda Satellite Part-Time Plus Comm. Rte. 8/15/00 Hourly
Merch.
SOUTHERN CALIFORNIA Waltermire Wayne Service Tech 8/27/01 Hourly
SOUTHERN CALIFORNIA Raney Robert Area General Manager 3/24/98 Salary 60,000.00
SOUTHERN CALIFORNIA Evans Bambi Commission Route Merchandiser 3/14/94 Salary
SOUTHERN CALIFORNIA Fernandez Audelia Commission Route Merchandiser 10/25/99 Salary
SOUTHERN CALIFORNIA Fletcher-YounJanet Commission Route Merchandiser 5/5/98 Salary
SOUTHERN CALIFORNIA Scarcelli Al Commission Route Merchandiser 11/17/98 Salary
SOUTHERN CALIFORNIA Spoor Stephanie Commission Route Merchandiser 4/19/99 Salary
SOUTHERN CALIFORNIA Whitt Devina Commission Route Merchandiser 6/26/00 Salary
SOUTHERN CALIFORNIA Blaustein Mark Field Sales Representative 4/9/01 Salary 27,600.00
PITTSBURGH Ninehouser James 7 percent commission
PITTSBURGH Taylor Eleanor
PITTSBURGH Weaverling Michael
PITTSBURGH Austin Linda Lee 7 percent commission
PITTSBURGH Calaba Sr. George
PITTSBURGH Holmes Patrick 2 percent commission
PITTSBURGH Masters Gary 7 percent commission
PITTSBURGH Wallace Sylvester 7 percent commission
PITTSBURGH Kossman Terry 2 percent commission
PITTSBURGH Summerfield Nancy 2 percent commission
PITTSBURGH Collins Richard 7 percent commission
PITTSBURGH Collett Connie 7 percent commission
PITTSBURGH Hedgecock Penny 7 percent commission
PITTSBURGH McCoy Charlene
PITTSBURGH Miller Jay 7 percent commission
PITTSBURGH Sullivan Sydney 7 percent commission
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SAN ANTONIO
4 HOURLY / 13 SALARY
SAN ANTONIO Garcia Maria 8.00
SAN ANTONIO Martinez Leticia 8.00
SAN ANTONIO Estrada David 10.00
SAN ANTONIO Trevino Humberto 10.00
SAN ANTONIO Contreras Joey 7 percent commission
SAN ANTONIO Perry Lavella
SAN ANTONIO Apaez Olivia
SAN ANTONIO Garcia Jose
SAN ANTONIO Rodriguez Alfredo
SAN ANTONIO Hernandez Paul 7 percent commission
SAN ANTONIO Shipp Anne 7 percent commission
SAN ANTONIO Rodriguez Juan 7 percent commission
SAN ANTONIO Briseno Victor 7 percent commission
SAN ANTONIO Marrou Brandon 7 percent commission
SAN ANTONIO Marrou Lee 7 percent commission
SAN ANTONIO Urrabazo Leroy 7 percent commission
SAN ANTONIO Villarreal Victor 7 percent commission
SAN ANTONIO Diaz John
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SOUTHERN CALIFORNIA
5 HOURLY / 17 SALARY
SOUTHERN CALIFORNIA Weimer Shannon 10.40
SOUTHERN CALIFORNIA Garcia Linda 9.50
SOUTHERN CALIFORNIA Logsdon Maurice 7.00 2 percent commission
SOUTHERN CALIFORNIA Wootton Brenda 8.00 2 percent commission
SOUTHERN CALIFORNIA Waltermire Wayne 11.00
SOUTHERN CALIFORNIA Raney Robert
SOUTHERN CALIFORNIA Evans Bambi 7 percent commission
SOUTHERN CALIFORNIA Fernandez Audelia 7 percent commission
SOUTHERN CALIFORNIA Fletcher-YounJanet 7 percent commission
SOUTHERN CALIFORNIA Scarcelli Al 7 percent commission
SOUTHERN CALIFORNIA Spoor Stephanie 7 percent commission
SOUTHERN CALIFORNIA Whitt Devina 7 percent commission
SOUTHERN CALIFORNIA Blaustein Mark
SOUTHERN CALIFORNIA Krause Cindy Office Manager 11/11/96 Salary 24,000.00
SOUTHERN CALIFORNIA Szalanski Debra Route Manager 11/17/98 Salary 28,200.00
SOUTHERN CALIFORNIA Thomas George Route Manager 6/22/01 Salary 27,600.00
SOUTHERN CALIFORNIA Weir Mark Route Merchandiser 8/6/98 Salary
SOUTHERN CALIFORNIA Creech Alfred Satellite Comm. Rte. Merch. 7/13/96 Salary
SOUTHERN CALIFORNIA Hiel Hans Satellite Comm. Rte. Merch. 4/22/99 Salary
SOUTHERN CALIFORNIA Robbins Betty Satellite Comm. Rte. Merch. 10/21/98 Salary
SOUTHERN CALIFORNIA Shaw David Satellite Comm. Rte. Merch. 7/21/00 Salary
SOUTHERN CALIFORNIA Teran Teri Satellite Comm. Rte. Merch. 9/7/99 Salary
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SOUTH CAROLINA
2 HOURLY / 14 SALARY
SOUTH CAROLINA Castelow Candace Cash Counter 1/17/00 Hourly
SOUTH CAROLINA McIntyre Brad Route Merchandiser 6/21/01 Hourly
SOUTH CAROLINA Henson Jane Commission Route Merchandiser 6/28/99 Salary
SOUTH CAROLINA Lewis Sharon Commission Route Merchandiser 2/8/01 Salary
SOUTH CAROLINA Michael Cynthia General Manager 1/15/01 Salary 39,996.00
SOUTH CAROLINA Barry William Route Manager 5/6/98 Salary 27,000.00
SOUTH CAROLINA Carr Brian Route Manager 8/26/01 Salary 22,999.92
SOUTH CAROLINA Alexander Gary Base Plus Route Merchandiser 4/23/01 Salary 15,600.00
SOUTH CAROLINA Fowler Gloria Route Merchandiser 7/20/01 Salary 19,992.00
SOUTH CAROLINA Henson James Route Merchandiser 11/11/98 Salary
SOUTH CAROLINA Johnson Calbert Route Merchandiser 8/31/98 Salary 15,000.00
SOUTH CAROLINA Martin Edwin Route Merchandiser 5/13/01 Salary 19,999.92
SOUTH CAROLINA Rehwinkel Constance Route Merchandiser 6/18/01 Salary 19,999.92
SOUTH CAROLINA Echols Walter Satellite Comm. Rte. Merch. 12/31/96 Salary
SOUTH CAROLINA Pfeiffer William Satellite Comm. Rte. Merch. 3/27/97 Salary
SOUTH CAROLINA June Stuart Service Manager 4/28/97 Salary 25,002.00
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SEATTLE
45 HOURLY / 3 SALARY
Seattle Warehouse Blau Steven Forklift Operator 8/27/98 Hourly
Seattle Warehouse Johnson Anthony Forklift Operator 8/31/98 Hourly
Seattle Warehouse Almaguer Tomas Warehouse 1/9/01 Hourly
Seattle Warehouse Arias Martha Warehouse 3/12/01 Hourly
Seattle Warehouse Bailey Daniel Second Warehouse 8/13/01 Hourly
Seattle Warehouse Barragan Bertha Warehouse 5/31/01 Hourly
Seattle Warehouse Cabonot Pedro Warehouse 9/17/98 Hourly
Seattle Warehouse Christensen Travis Warehouse 5/30/01 Hourly
SOUTHERN CALIFORNIA Krause Cindy
SOUTHERN CALIFORNIA Szalanski Debra
SOUTHERN CALIFORNIA Thomas George
SOUTHERN CALIFORNIA Weir Mark 7 percent commission
SOUTHERN CALIFORNIA Creech Alfred 7 percent commission
SOUTHERN CALIFORNIA Hiel Hans 7 percent commission
SOUTHERN CALIFORNIA Robbins Betty 7 percent commission
SOUTHERN CALIFORNIA Shaw David 7 percent commission
SOUTHERN CALIFORNIA Teran Teri 7 percent commission
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SOUTH CAROLINA
2 HOURLY / 14 SALARY
SOUTH CAROLINA Castelow Candace 9.62
SOUTH CAROLINA McIntyre Brad 9.00
SOUTH CAROLINA Henson Jane 7 percent commission
SOUTH CAROLINA Lewis Sharon 7 percent commission
SOUTH CAROLINA Michael Cynthia
SOUTH CAROLINA Barry William
SOUTH CAROLINA Carr Brian
SOUTH CAROLINA Alexander Gary 2 percent commission
SOUTH CAROLINA Fowler Gloria
SOUTH CAROLINA Henson James 7 percent commission
SOUTH CAROLINA Johnson Calbert
SOUTH CAROLINA Martin Edwin
SOUTH CAROLINA Rehwinkel Constance
SOUTH CAROLINA Echols Walter 7 percent commission
SOUTH CAROLINA Pfeiffer William 7 percent commission
SOUTH CAROLINA June Stuart
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SEATTLE
45 HOURLY / 3 SALARY
Seattle Warehouse Blau Steven 13.60
Seattle Warehouse Johnson Anthony 14.12
Seattle Warehouse Almaguer Tomas 9.26
Seattle Warehouse Arias Martha 9.20
Seattle Warehouse Bailey Daniel Second 9.00
Seattle Warehouse Barragan Bertha 9.25
Seattle Warehouse Cabonot Pedro 9.75
Seattle Warehouse Christensen Travis 9.25
Seattle Warehouse Craft Larry Warehouse 2/26/01 Hourly
Seattle Warehouse Deines Ginger Warehouse 3/1/99 Hourly
Seattle Warehouse Farrell Stephen Warehouse 9/21/00 Hourly
Seattle Warehouse Gaytan Donny Warehouse 4/19/01 Hourly
Seattle Warehouse Gaytan- Erik Warehouse 2/22/01 Hourly
Ramirez
Seattle Warehouse Gonzalez Jose Warehouse 6/20/01 Hourly
Seattle Warehouse Goodman Mark Warehouse 9/21/98 Hourly
Seattle Warehouse Greggs Pauline Warehouse 7/5/00 Hourly
Seattle Warehouse Harlow Raymond Warehouse 7/31/00 Hourly
Seattle Warehouse Howard George Warehouse 2/15/01 Hourly
Seattle Warehouse Jones Amber Warehouse 10/5/98 Hourly
Seattle Warehouse Kaupp Sean Warehouse 9/5/00 Hourly
Seattle Warehouse Kohler Betty Warehouse 8/17/98 Hourly
Seattle Warehouse Lee Alisa Warehouse 9/22/00 Hourly
Seattle Warehouse Lima Maribel Warehouse 8/6/01 Hourly
Seattle Warehouse Lucas Elaine Warehouse 7/5/00 Hourly
Seattle Warehouse Martinez Norma Warehouse 10/24/00 Hourly
Seattle Warehouse Natalina Nadezhda Warehouse 5/24/99 Hourly
Seattle Warehouse Nguyen Tam Warehouse 5/3/99 Hourly
Seattle Warehouse Ondrade Hilario Warehouse 8/29/00 Hourly
Seattle Warehouse Orozco Sergio Warehouse 5/31/01 Hourly
Seattle Warehouse Pena-Guitron Arcelia Warehouse 4/26/01 Hourly
Seattle Warehouse Ramirez Jeffrey Warehouse 9/5/00 Hourly
Seattle Warehouse Raner Justin Warehouse 6/21/00 Hourly
Seattle Warehouse Reuter Michael Warehouse 2/26/99 Hourly
Seattle Warehouse Rivas- Salvador Warehouse 7/5/00 Hourly
Velasquez
Seattle Warehouse Rosas Antonio Warehouse 2/13/01 Hourly
Seattle Warehouse Scott Lisa Warehouse 1/22/00 Hourly
Seattle Warehouse Stewart Robert Warehouse 8/23/99 Hourly
Seattle Warehouse Tembo Lucy Warehouse 2/19/01 Hourly
Seattle Warehouse Todd David Warehouse 7/10/00 Hourly
Seattle Warehouse Velazquez Aaron Warehouse 8/27/01 Hourly
Seattle Warehouse Vo Kich Warehouse 4/20/99 Hourly
Seattle Warehouse Vo Ha Warehouse 9/16/98 Hourly
Seattle Warehouse Walker Maria Warehouse 2/23/99 Hourly
Seattle Warehouse Zacarias Adalberto Warehouse 5/2/01 Hourly
Seattle Warehouse Zewdie Mezgebu Warehouse 8/17/98 Hourly
Seattle Warehouse Gould Kevin Assistant Manager 3/22/00 Salary 45,000.00
Seattle Warehouse Pankow Philip Department Manager 8/3/98 Salary 64,000.08
Seattle Warehouse Held Jay Warehouse & Facilities Assistant 8/28/98 Salary 36,000.00
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TAMPA
10 SALARY
TAMPA Whitcomb Robert Assistant Manager 8/5/98 Salary 28,000.08
TAMPA De Coster David Base Plus Comm. Rte. Merch. 6/12/98 Salary 18,000.00
TAMPA Johnson Scott Commission Route Merchandiser 11/20/00 Salary
TAMPA Mullen Kevin Commission Route Merchandiser 10/29/98 Salary
TAMPA Parrish Jason Commission Route Merchandiser 3/16/99 Salary
TAMPA Sanbury David Commission Route Merchandiser 6/12/98 Salary
TAMPA Williams Daniel Satellite Comm. Rte. Merch. 6/5/00 Salary
TAMPA Blake Rollie General Manager 6/12/98 Salary 44,000.16
TAMPA Bey Yvonne Office Manager 6/12/98 Salary 18,241.92
TAMPA Mosier Edgar Satellite Comm. Rte. Merch. 6/13/98 Salary
TAMPA Preza Stephen Service Manager 7/1/98 Salary 27,084.00
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TEXAS
3 HOURLY / 33 SALARY
TEXAS North Delilah Cash Counter 4/19/01 Hourly
TEXAS Vincent Bonnie Cash Counter 9/22/00 Hourly
TEXAS Day Becky Office Assistant 4/3/98 Hourly
TEXAS Jerkins Richard Area General Manager 6/1/98 Salary 52,500.00
TEXAS Robertson Terry Assistant Manager 1/8/01 Salary 33,996.00
TEXAS Loveless Paul Base Plus Comm. Rte. Merch. 4/1/01 Salary 24,000.00
TEXAS Wagner William Base Plus Comm. Rte. Merch. 8/2/00 Salary 24,000.00
TEXAS Hathaway Ralph Co-General Manager 11/2/98 Salary 36,999.84
TEXAS Blew Norman Commission Route Merchandiser 11/17/98 Salary
Seattle Warehouse Craft Larry 9.21
Seattle Warehouse Deines Ginger 10.58
Seattle Warehouse Farrell Stephen 9.39
Seattle Warehouse Gaytan Donny 9.25
Seattle Warehouse Gaytan-
Ramirez Erik 9.25
Seattle Warehouse Gonzalez Jose 9.00
Seattle Warehouse Goodman Mark 9.50
Seattle Warehouse Greggs Pauline 10.40
Seattle Warehouse Harlow Raymond 10.42
Seattle Warehouse Howard George 10.23
Seattle Warehouse Jones Amber 11.49
Seattle Warehouse Kaupp Sean 8.72
Seattle Warehouse Kohler Betty 11.21
Seattle Warehouse Lee Alisa 11.00
Seattle Warehouse Lima Maribel 9.00
Seattle Warehouse Lucas Elaine 10.65
Seattle Warehouse Martinez Norma 9.50
Seattle Warehouse Natalina Nadezhda 9.44
Seattle Warehouse Nguyen Tam 9.56
Seattle Warehouse Ondrade Hilario 9.51
Seattle Warehouse Orozco Sergio 9.00
Seattle Warehouse Pena-Guitron Arcelia 9.00
Seattle Warehouse Ramirez Jeffrey 9.41
Seattle Warehouse Raner Justin 12.67
Seattle Warehouse Reuter Michael 10.94
Seattle Warehouse Rivas- Salvador 9.63
Velasquez
Seattle Warehouse Rosas Antonio 9.00
Seattle Warehouse Scott Lisa 9.47
Seattle Warehouse Stewart Robert 10.40
Seattle Warehouse Tembo Lucy 9.00
Seattle Warehouse Todd David 9.59
Seattle Warehouse Velazquez Aaron 9.00
Seattle Warehouse Vo Kich 9.58
Seattle Warehouse Vo Ha 10.06
Seattle Warehouse Walker Maria 12.50
Seattle Warehouse Zacarias Adalberto 9.00
Seattle Warehouse Zewdie Mezgebu 10.00
Seattle Warehouse Gould Kevin
Seattle Warehouse Pankow Philip
Seattle Warehouse Held Jay
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TAMPA
10 SALARY
TAMPA Whitcomb Robert
TAMPA De Coster David 2 percent commission
TAMPA Johnson Scott 6.5 percent commission
TAMPA Mullen Kevin 6.5 percent commission
TAMPA Parrish Jason 6.5 percent commission
TAMPA Sanbury David 7 percent commission
TAMPA Williams Daniel 6.5 percent commission
TAMPA Blake Rollie
TAMPA Bey Yvonne 8.77
TAMPA Mosier Edgar 7 percent commission
TAMPA Preza Stephen
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TEXAS
3 HOURLY / 33 SALARY
TEXAS North Delilah 8.50
TEXAS Vincent Bonnie 8.00
TEXAS Day Becky 10.50
TEXAS Jerkins Richard
TEXAS Robertson Terry
TEXAS Loveless Paul 2 percent commission
TEXAS Wagner William 2 percent commission
TEXAS Hathaway Ralph
TEXAS Blew Norman 7 percent commission
TEXAS Dickenson Lanny Cyle Commission Route Merchandiser 6/4/01 Salary
TEXAS Flores Eddie Commission Route Merchandiser 4/11/01 Salary
TEXAS Purdy Michael Commission Route Merchandiser 4/11/01 Salary
TEXAS Starr Tracy Commission Route Merchandiser 6/4/01 Salary
TEXAS Volkert Michael Commission Route Merchandiser 2/15/99 Salary
TEXAS Wells Jeffery Commission Route Merchandiser 6/4/01 Salary
TEXAS Williams Carol Commission Route Merchandiser 12/11/00 Salary
TEXAS Baker Nanci Office Manager 8/17/98 Salary 27,000.00
TEXAS Howard Alice Part-Time Plus Comm. Rte. Merch. 4/2/01 Salary
TEXAS Radzai John Route Manager 8/25/97 Salary
TEXAS Thomas Robert Route Manager 10/19/98 Salary 27,000.00
TEXAS Gil Ramon Route Merchandiser 2/6/01 Salary
TEXAS Maes Felicia Route Merchandiser 4/2/01 Salary
TEXAS Matlock Shane Route Merchandiser 12/13/00 Salary
TEXAS Walker Joe Route Merchandiser 2/26/01 Salary
TEXAS Butterfield Diana Satellite Comm. Rte. Merch. 2/7/00 Salary
TEXAS Collier Bobby Satellite Comm. Rte. Merch. 8/8/00 Salary
TEXAS Griffin Charles Satellite Comm. Rte. Merch. 3/22/99 Salary
TEXAS Love Andrew Satellite Comm. Rte. Merch. 5/12/97 Salary
TEXAS Mahaley Cathy Satellite Comm. Rte. Merch. 12/27/99 Salary
TEXAS Chapman Gregory Satellite Route Merchandiser 9/27/99 Salary
TEXAS Hobbs John Satellite Route Merchandiser 9/13/00 Salary
TEXAS Hornbuckle Johnny Satellite Route Merchandiser 3/8/00 Salary
TEXAS Johnson Quintas Satellite Route Merchandiser 12/15/99 Salary
TEXAS Kniss David Satellite Route Merchandiser 1/25/00 Salary
TEXAS Cornoyer Vincent Service Manager 1/21/98 Salary 25,000.08
TEXAS Haynes Tommy Service Tech 5/24/99 Salary 24,000.00
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UTAH
12 SALARY
UTAH Ash Deloni Commission Route Merchandiser 4/26/00 Salary
UTAH Johnson Valerie Commission Route Merchandiser 5/22/00 Salary
UTAH Brunner Michael General Manager 5/3/01 Salary 43,333.42
UTAH Winquist Briana Office Manager 2/10/97 Salary 22,884.00
UTAH Freeman Evelyn Part-Time Satellite Route Merch. 6/12/01 Salary 3,000.00
UTAH Jarvis Marcia Part-Time Satellite Route Merch. 8/16/01 Salary 1,680.00
UTAH Ruiz Joel Route Manager 9/9/99 Salary 27,000.00
UTAH Connell Brenda Route Merchandiser 7/30/01 Salary 9,600.00
UTAH Thomas Dolores Route Merchandiser 6/27/01 Salary 19,200.00
UTAH Ricord Linda Satellite Comm. Rte. Merch. 6/8/99 Salary
UTAH Avery Janine Satellite Route Merchandiser 3/8/00 Salary 6,000.00
UTAH Kropushek Moana Satellite Route Merchandiser 4/19/99 Salary 12,600.00
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VIRGINIA
2 HOURLY / 15 SALARY
VIRGINIA Bachtell Lorie Part-Time Plus Comm. Rte. Merch. 2/2/01 Hourly
VIRGINIA Rosen Stephen Part-Time Plus Comm. Rte. Merch. 7/1/97 Hourly
VIRGINIA Spencer Eula Assistant Manager 8/11/97 Salary 27,000.00
VIRGINIA Barcenas Nestor Commission Route Merchandiser 12/22/97 Salary
VIRGINIA Hayes Carolyn Commission Route Merchandiser 3/1/00 Salary
VIRGINIA Hudson John Commission Route Merchandiser 12/22/97 Salary
VIRGINIA Meads Daryl Commission Route Merchandiser 8/13/97 Salary
VIRGINIA Miller Glenn Commission Route Merchandiser 4/23/01 Salary
VIRGINIA Tramuta Paul Commission Route Merchandiser 2/19/01 Salary
VIRGINIA Hart George General Manager 5/7/01 Salary 56,333.42
VIRGINIA Nordyke Nichole Office Manager 5/15/01 Salary 24,000.00
VIRGINIA Ingram Daryl Route Manager 4/29/98 Salary 24,000.00
VIRGINIA Delawder Debra Route Merchandiser 6/6/01 Salary 18,000.00
VIRGINIA Hoyt Dale Route Merchandiser 5/21/01 Salary 18,500.16
VIRGINIA Keane Imelda Route Merchandiser 8/7/01 Salary 18,000.00
VIRGINIA Ulma James Route Merchandiser 6/5/01 Salary 18,000.00
VIRGINIA Crowley Dennis Service Manager 5/3/01 Salary 35,750.00
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WASHINGTON
3 HOURLY / 14 SALARY
TEXAS Dickenson Lanny Cyle 7 percent commission
TEXAS Flores Eddie 7 percent commission
TEXAS Purdy Michael 7 percent commission
TEXAS Starr Tracy 7 percent commission
TEXAS Volkert Michael 7 percent commission
TEXAS Wells Jeffery 7 percent commission
TEXAS Williams Carol 7 percent commission
TEXAS Baker Nanci
TEXAS Howard Alice 10 percent commission
TEXAS Radzai John 7 percent commission
TEXAS Thomas Robert
TEXAS Gil Ramon 7 percent commission
TEXAS Maes Felicia 10 percent commission
TEXAS Matlock Shane 7 percent commission
TEXAS Walker Joe 2 percent commission
TEXAS Butterfield Diana 6 percent commission
TEXAS Collier Bobby 7 percent commission
TEXAS Griffin Charles 7 percent commission
TEXAS Love Andrew 7 percent commission
TEXAS Mahaley Cathy 7 percent commission
TEXAS Chapman Gregory 7 percent commission
TEXAS Hobbs John 7 percent commission
TEXAS Hornbuckle Johnny 7 percent commission
TEXAS Johnson Quintas 7 percent commission
TEXAS Kniss David 7 percent commission
TEXAS Cornoyer Vincent
TEXAS Haynes Tommy
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UTAH
12 SALARY
UTAH Ash Deloni 6 percent commission
UTAH Johnson Valerie 6.5 percent commission
UTAH Brunner Michael
UTAH Winquist Briana
UTAH Freeman Evelyn 2 percent commission
UTAH Jarvis Marcia
UTAH Ruiz Joel
UTAH Connell Brenda
UTAH Thomas Dolores
UTAH Ricord Linda 6.5 percent commission
UTAH Avery Janine
UTAH Kropushek Moana
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VIRGINIA
2 HOURLY / 15 SALARY
VIRGINIA Bachtell Lorie 9.00 2 percent commission P/T
VIRGINIA Rosen Stephen 9.00 2 percent commission P/T
VIRGINIA Spencer Eula
VIRGINIA Barcenas Nestor 7 percent commission
VIRGINIA Hayes Carolyn 7 percent commission
VIRGINIA Hudson John 7 percent commission
VIRGINIA Meads Daryl 7 percent commission
VIRGINIA Miller Glenn 7 percent commission
VIRGINIA Tramuta Paul 7 percent commission
VIRGINIA Hart George
VIRGINIA Nordyke Nichole
VIRGINIA Ingram Daryl
VIRGINIA Delawder Debra
VIRGINIA Hoyt Dale
VIRGINIA Keane Imelda
VIRGINIA Ulma James
VIRGINIA Crowley Dennis
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WASHINGTON
3 HOURLY / 14 SALARY
WASHINGTON Edwards Dawn Office Assistant 9/13/99 Hourly
WASHINGTON Hamilton Genni Office Assistant 6/13/98 Hourly
WASHINGTON Stephens Jim Route Merchandiser 7/2/01 Hourly
WASHINGTON Dexter Matthew Area General Manager 8/3/98 Salary 49,999.92
WASHINGTON Bakke Patrick Assistant Manager 5/21/01 Salary 33,000.00
WASHINGTON Aguas Jayce Commission Route Merchandiser 3/29/01 Salary
WASHINGTON Evans Michael Paul Commission Route Merchandiser 1/3/01 Salary
WASHINGTON Jackson Melody Commission Route Merchandiser 2/1/99 Salary
WASHINGTON Thorsness Donald Commission Route Merchandiser 10/16/00 Salary
WASHINGTON Dexter Matthew General Manager 11/6/00 Salary 49,999.92
WASHINGTON Goldsworth Bryan Office Manager 1/12/99 Salary 32,000.16
WASHINGTON Pine David Route Manager 4/30/01 Salary 24,999.84
WASHINGTON Stensland David-Kawika Route Manager 11/23/98 Salary 28,000.08
WASHINGTON Baker Brandon Satellite Base Plus Comm. Rte. Merch. 5/30/00 Salary 19,500.00
WASHINGTON Predovich Mark Satellite Base Plus Comm. Rte. Merch. 12/12/98 Salary 19,500.00
WASHINGTON Terry Russell Satellite Comm. Rte. Merch. 7/22/98 Salary
WASHINGTON Tuckness David Satellite Comm. Rte. Merch. 6/13/98 Salary
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WISCONSIN
4 HOURLY / 12 SALARY
WISCONSIN Flatoff Norbert Delivery Driver 2/19/01 Hourly
WISCONSIN Frost William Office Assistant 10/13/00 Hourly
WISCONSIN Odegaard Sarah Office Assistant 5/29/01 Hourly
WISCONSIN O'Grady Mary Office Assistant 4/17/00 Hourly
WISCONSIN Besler Susan Assistant Manager 4/26/99 Salary 31,800.00
WISCONSIN Fickes Larry Base Plus Comm. Rte. Merch. 8/16/97 Salary 18,000.00
WISCONSIN Frost Patricia Base Plus Comm. Rte. Merch. 11/29/99 Salary 15,000.00
WISCONSIN Grove Kenneth Base Plus Comm. Rte. Merch. 8/1/97 Salary 15,000.00
WISCONSIN Salamonski Jacqueline Base Plus Comm. Rte. Merch. 5/22/00 Salary 15,000.00
Pfluger
WISCONSIN Welch Robert Base Plus Comm. Rte. Merch. 4/12/99 Salary 15,000.00
WISCONSIN Kennedy Patrick Commission Route Merchandiser 3/13/00 Salary
WISCONSIN Elgin Kimberly Commission Route Merchandiser 4/2/01 Salary
WISCONSIN Laituri Michael General Manager 1/29/96 Salary 40,008.00
WISCONSIN Anees Anna Satellite Base Plus Comm. Rte. Merch. 4/2/99 Salary 15,000.00
WISCONSIN Grota Dawn Satellite Comm. Rte. Merch. 6/7/99 Salary
WISCONSIN Puestow Gerald Satellite Comm. Rte. Merch. 5/26/98 Salary
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WASHINGTON Edwards Dawn 9.52
WASHINGTON Hamilton Genni 13.50
WASHINGTON Stephens Jim 10.00
WASHINGTON Dexter Matthew
WASHINGTON Bakke Patrick
WASHINGTON Aguas Jayce 7 percent commission
WASHINGTON Evans Michael Paul 7 percent commission
WASHINGTON Jackson Melody 7 percent commission
WASHINGTON Thorsness Donald 7 percent commission
WASHINGTON Dexter Matthew
WASHINGTON Goldsworth Bryan
WASHINGTON Pine David
WASHINGTON Stensland David-Kawika
WASHINGTON Baker Brandon 2 percent commission
WASHINGTON Predovich Mark 2 percent commission
WASHINGTON Terry Russell 7 percent commission
WASHINGTON Tuckness David 7 percent commission
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WISCONSIN
4 HOURLY / 12 SALARY
WISCONSIN Flatoff Norbert 10.00
WISCONSIN Frost William 14.00
WISCONSIN Odegaard Sarah 7.00
WISCONSIN O'Grady Mary 9.00
WISCONSIN Besler Susan
WISCONSIN Fickes Larry 2 percent commission
WISCONSIN Frost Patricia 2 percent commission
WISCONSIN Grove Kenneth 2 percent commission
WISCONSIN Salamonski Jacqueline 2 percent commission
Pfluger
WISCONSIN Welch Robert 2 percent commission
WISCONSIN Kennedy Patrick 7 percent commission
WISCONSIN Elgin Kimberly 7 percent commission
WISCONSIN Laituri Michael
WISCONSIN Anees Anna 2 percent commission
WISCONSIN Grota Dawn 7 percent commission
WISCONSIN Puestow Gerald 7 percent commission
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2.13(M) Employees of any of the Acquired Corporations who are not fully
available to perform work because of disability or other leave:
STATUS NAME HIRE DATE HOME OFFICE POSITION
Leave Cale, Candice A 10/11/99 Sugarloaf of Denver Route Merchandiser
Pregnancy- FMLA Leave of Absence
Leave Hayes, Carolyn R 3/1/00 Sugarloaf of Virginia Route Merchandiser
Pregnancy- Non-FMLA Leave of Absence
Leave Emich, Shari L 10/26/98 Sugarloaf of Minnesota Route Merchandiser
Pregnancy- Non-FMLA Leave of Absence
Leave Stanford, Teresa D 8/19/98 Sugarloaf of Charlotte Route Manager
Lifting Injury - Workers Compensation
2.15 None.
2.16 List of each material insurance policy and self-insurance program
relating to the business, assets and operations of the Acquired
Companies, each of which is in full force and effect.
TYPE OF POLICY POLICY NO. CARRIER
General Liability 1320314 Lexington Insurance Company
Automobile Liability BUA 159527428 (TX) Continental Casualty
BUA 159527350 Continental Casualty
Employment Practices EOC3608138-02 Zurich American Ins. Co.
Excess Liability 9SX131356-01 Lumbermens Mutual Casualty
Worker's Compensation WC 159527266 Continental Casualty
Blanket Property 46UUNIP6872 Hartford Casualty Ins. Co
Blanket Crime 46BDDAM5840 Hartford Casualty Ins. Co
Cargo 491340-08 Indemnity Ins Co of America
D&O F00982D96 Lloyds of London
2.20 The Premier Amusement Vendor Agreement between the Company and Best
Vendors Co. includes provisions regarding consent and transfer fees in
connection with a merger by the Company.
Washington State Gaming License.
2.23 See terms of the Batchelder & Partners, Inc. engagement letter dated
March 10, 2000, as amended. Copies of the March 10, 2000 engagement
letter and subsequent amendments have been previously provided to
Parent.
2.25 See terms of the Batchelder & Partners, Inc. engagement letter dated
March 10, 2000, as amended. Copies of the March 10, 2000 engagement
letter and subsequent amendments have been previously provided to
Parent.
The following agreements contain performance or compensation guarantees
that require the Company to pay fees in the event such guarantees are
not met. To the extent that the Company believes such fees may be
payable, it regularly budgets for such payments:
Premier Amusement Vendor Agreement between the Company and Best
Vendors Co. Amusement Vending Agreement between the Company and
Denny's, Inc. License Agreement between the Company and Safeway
Inc.
In connection with the Agreement and the Merger, the Company will have
an obligation to pay to Cooley Godward LLP its transactional fees and a
$150,000 success fee at or prior to closing.
2.26 Identity of each person who is (or who may be deemed to be) an
"affiliate" (as that term is used in Rule 145 under the Securities Act)
of the Company:
John A. Sullivan
Randall J. Fagundo
Richard D. Jones
J. Gregory Theisen
Bruce W. Krysiak
Richard P. Bermingham
W. John Cash
Robert A. Kaslon
John A. Sullivan is employed by Relational Investors LLC, which may be
an affiliate of Batchelder & Partners, Inc.
J. Gregory Theisen is an affiliate of Theisen Vending Inc., which does
business with the Company.
