Document:

ex4-2c05102010.htm

 

Exhibit 4.2(c)

 

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (this “Agreement”) dated as of May 10, 2010 is made by and between VOLT INFORMATION SCIENCES, INC., a New York corporation (the “Pledgor”), and BANK OF AMERICA, N.A. in its capacity as administrative agent (the “Administrative Agent”) for the holders of the Secured Obligations (defined below).

WHEREAS, pursuant to that certain Credit Agreement (as amended, modified, supplemented, increased, extended, restated, refinanced or replaced from time to time, the "Credit Agreement") dated as of February 28, 2008 among the Pledgor, the subsidiaries party thereto, the Lenders party thereto and the Administrative Agent, the Lenders have agreed to make Loans and issue Letters of Credit upon the terms and subject to the conditions set forth therein; and

WHEREAS, this Agreement is required by the terms of the Credit Agreement.

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.   Definitions.

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement.  In addition, the following terms, as used herein, shall have the following meanings:

“Collateral Account” means that certain deposit account number 1499710376 maintained by the Pledgor at Bank of America, together with any substitutions therefor and replacements thereof.

 

“Credit Agreement Obligations” means, without duplication, all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter of Credit, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

“Event of Default” means any of (a) the failure of the Pledgor to comply with the terms and conditions of this Agreement and (b) the existence of an Event of Default (as defined in the Credit Agreement).

 

“HSBC Foreign Obligations” means, collectively, any and all advances to, and debts, liabilities, obligations, covenants and duties of, any and all direct and indirect Foreign Subsidiaries of the Pledgor to HSBC Bank USA, National Association (or its subsidiaries and Affiliates), whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any such Foreign Subsidiary or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

  

  

  

“HSBC Foreign Obligations Guarantee” means the Pledgor’s absolute and unconditional guarantee of the HSBC Foreign Obligations, whether such guarantee is now existing or hereafter arising, and as the same may be amended and in effect from time to time.

 

“JPMC Foreign Obligations” means, collectively, any and all advances to, and debts, liabilities, obligations, covenants and duties of, any and all direct and indirect Foreign Subsidiaries of the Pledgor to JPMorgan Chase Bank, N.A. (or its subsidiaries and Affiliates), whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any such Foreign Subsidiary or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding.

 

“JPMC Foreign Obligations Guarantee” means the Pledgor’s absolute and unconditional guarantee of the JPMC Foreign Obligations, whether such guarantee is now existing or hereafter arising, and as the same may be amended and in effect from time to time.

 

“Secured Obligations” means, without duplication:  (a) the Credit Agreement Obligations; (b) the obligations of the Pledgor under the HSBC Foreign Obligations Guarantee, not exceeding the applicable Stipulated Foreign Guarantee Amount as in effect from time to time; (c) the obligations of the Pledgor under the JPMC Foreign Obligations Guarantee, not exceeding the applicable Stipulated Foreign Guarantee Amount as in effect from time to time; and (d) all reasonable costs and expenses incurred in connection with enforcement and collection of the foregoing, including the reasonable fees, charges and disbursements of counsel.

 

“Stipulated Foreign Guarantee Amount” means, as of the date of this Agreement, (a) in the case of the HSBC Foreign Obligations Guarantee, $500,000 and (b) in the case of the JPMC Foreign Obligations Guarantee, $7,500,000.  From time to time during the term of this Agreement, the Lender who is the lender thereunder (or whose subsidiary or other Affiliate is the lender thereunder) and the Pledgor may increase or decrease such Stipulated Foreign Guarantee Amount (for purposes of this Agreement), effective upon (i) prior written notice to the Administrative Agent in the form of Annex A hereto, (ii) acceptance of such notice by the Administrative Agent (which shall not be unreasonably withheld or delayed) and (iii) in the case of any increase, depositing additional cash in the Cash Collateral Account prior to (or concurrently) with giving effect to such increase in an amount sufficient such that, immediately after giving effect to such increase, the value of funds maintained on deposit in the Collateral Account shall be no less than 105% of the Baseline Amount (inclusive of the amount of such increase).

 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York.

 

Section 2.   Creation of Security Interest.  To secure the prompt payment and performance in full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, the Pledgor hereby grants to the Administrative Agent, for the benefit of the holders of the Secured Obligations, a continuing security interest in, and a right to set off against, any and all right, title and interest of the Pledgor in and to the following (hereinafter referred to collectively as the “Collateral”): (i) the Collateral Account, and all securities, investments, funds or interests in funds, money, time deposits or certificates of deposit or equivalent, in whatever currency denominated, and other interests and property now or hereafter held in the Collateral Account, and any and all renewals thereof and replacements therefor; and (ii) all proceeds (as defined in the UCC) of the Collateral Account, whether cash or non-cash.

  

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Section 3.   Representations and Covenants.

(a)           Ownership.  The Pledgor is the legal and beneficial owner of the Collateral and has the right to pledge, sell, assign or transfer the same.

(b)           Security Interest/Priority.  The Pledgor hereby represents and warrants that the pledge and security interest created in Section 2 hereof is a first priority security interest in favor of the Administrative Agent and shall constitute at all times a valid and perfected security interest in and upon all of the Collateral.  The Pledgor shall not grant a security interest in or permit any security interest upon the Collateral to anyone except the Administrative Agent prior to the termination of this Agreement in accordance with its terms.

(c)           Minimum Deposits in Collateral Account.

(i)           At all times prior to the termination of this Agreement in accordance with its terms, the Pledgor shall cause the value of the funds maintained on deposit in the Collateral Account to be no less than 105% of the Baseline Amount.

(ii)           Notwithstanding clause (i) above, if the Administrative Agent notifies the Pledgor at any time that, as a result of changes in one or more Spot Rates, the funds maintained on deposit in the Collateral Account are less than 100% of the Baseline Amount, then, immediately upon receipt of such notice, the Pledgor shall (A) deposit additional funds into the Collateral Account, (B) prepay the Credit Agreement Obligations and/or Cash Collateralize the L/C Obligations, (C) with the consent of the applicable Lender, reduce the Stipulated Foreign Guarantee Amount; or (D) effect any combination of the forgoing; in any such case in an aggregate amount sufficient to cause the value of the funds maintained on deposit in the Collateral Account to be no less than 105% of the Baseline Amount.

(iii)           For purposes hereof, "Baseline Amount" means, as of any date of determination, the sum of (A) the Total Revolving Outstandings plus (B) prior to payment in full of the HSBC Foreign Obligations (other than any continuing inchoate indemnity obligations) (and termination of any commitments to make credit extensions thereunder), an amount equal to the then-applicable Stipulated Foreign Guarantee Amount relating thereto plus (C) prior to payment in full of the JPMC Foreign Obligations (other than any continuing inchoate indemnity obligations) (and termination of any commitments to make credit extensions thereunder), an amount equal to the then-applicable Stipulated Foreign Guarantee Amount relating thereto.

(d)           Further Assurances.  The Pledgor shall execute and deliver to the Administrative Agent concurrently with the execution of this Agreement, and at any time or times hereafter at the request of the Administrative Agent, all assignments, conveyances, assignment statements, financing statements, renewal financing statements, security agreements, control agreements, affidavits, notices and all other agreements, instruments and documents that the Administrative Agent may reasonably request, and will execute all necessary endorsements in order to perfect and maintain the security interests and liens granted herein by the Pledgor to the Administrative Agent and in order to fully consummate all of the transactions contemplated herein and under the Loan Documents.  In furtherance of the foregoing, the Pledgor hereby appoints the Administrative Agent as its attorney-in-fact for the purpose of making any of the foregoing endorsements and executing any such financing statements, documents and agreements.  The foregoing power of attorney shall be a power coupled with an interest and shall be irrevocable until payment in full of Secured Obligations.  The Pledgor hereby authorizes the Administrative Agent to prepare and file such financing statements (including continuation statements) or amendments thereof or

  

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supplements thereto or other instruments as the Administrative Agent may from time to time deem necessary or appropriate in order to perfect and maintain the security interests granted hereunder in accordance with the UCC.

Section 4.   Event of Default

(a)           Upon the occurrence of an Event of Default and during the continuation thereof, the Administrative Agent shall have, in respect of the Collateral, (i) the right, immediately to set off against the Secured Obligations any and all amounts in the Collateral Account, (ii) any and all of the rights and remedies contained in this Agreement, the other Loan Documents and/or otherwise permitted by Law and (iii) all the rights and remedies of a secured party under the UCC, all of which shall be cumulative to the extent permitted by Law.

(b)           If an Event of Default shall have occurred and be continuing, the Administrative Agent may apply (i) any cash then held by it as Collateral and (ii) the proceeds of any sale or other disposition of all or any part of the Collateral, in each case to the Secured Obligations in the following manner:

 

First, to the payment of all reasonable out-of-pocket costs and expenses (including without limitation reasonable attorneys' fees) of the Administrative Agent in connection with enforcing the rights of the holders of the Secured Obligations under this Agreement and any protective advances made by the Administrative Agent with respect to the Collateral under or pursuant to the terms of this Agreement;

Second, pro rata to (a) the outstanding Credit Agreement Obligations (which pro rata share will be applied to the reduction of the Credit Agreement Obligations in the order set forth in Section 9.03 of the Credit Agreement), (b) the outstanding obligations of the Pledgor under the HSBC Foreign Obligations Guarantee, to the extent constituting Secured Obligations and (c) the outstanding obligations of the Pledgor under the JPMC Foreign Obligations Guarantee, to the extent constituting Secured Obligations (in each case, based on the proportion that such then-outstanding Credit Agreement Obligations, such then-outstanding applicable obligations in respect of the HSBC Foreign Obligations Guarantee and such then-outstanding applicable obligations in respect of the JPMC Foreign Obligations, as the case may be, bears to the aggregate outstanding Secured Obligations); and

Last, the balance, if any, after all of the Secured Obligations (other than any continuing inchoate indemnity obligations) have been indefeasibly paid in full, to the Pledgor or as otherwise required by Law.

Section 5.   Miscellaneous.

(a)           Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

(b)           Benefit.  This Agreement shall be binding upon the parties hereto (and, by their acceptance of the benefits hereof, the holders of the Secured Obligations) and their respective successors and assigns and shall inure, together with the rights and remedies of the Administrative Agent and the holders of the Secured Obligations hereunder, to the benefit of the parties hereto (and, by their acceptance of the benefits hereof, the holders of the Secured Obligations) and their respective successors and permitted assigns, except

 

  

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that the Pledgor may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and the Lenders.

 

(c)           Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of executed counterparts of this Agreement by telecopy or pdf shall be effective as an original.

(d)           Severability.  If any provision of any of this Agreement is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

(e)           Other Security; Deficiency.  To the extent that any of the Secured Obligations are now or hereafter secured by property other than the Collateral, or by a guarantee, endorsement or property of any other Person, then the Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations or any of the rights of the Administrative Agent or the holders of the Secured Obligations under this Agreement, under any other of the Loan Documents or under any other document relating to the Secured Obligations.  In the event that the proceeds of any sale, collection or realization of the Collateral are insufficient to pay all amounts to which the Administrative Agent or the holders of the Secured Obligations are legally entitled, the Pledgor (to the extent otherwise liable in the absence of this Agreement) shall remain liable for the deficiency, together with interest thereon at the Default Rate, together with the costs of collection and the fees, charges and disbursements of counsel.  Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Pledgor or to whomsoever a court of competent jurisdiction shall determine to be entitled thereto.

(f)           Rights of Required Lenders.  All rights of the Administrative Agent hereunder, if not exercised by the Administrative Agent, may be exercised by the Required Lenders.

(g)           Amendments.  This Agreement and the provisions hereof may not be amended, waived, modified, changed, discharged or terminated (other than termination in accordance with subsection (i) below) except in a written instrument executed by the Pledgor and the Administrative Agent and, if prior to payment in full of the Credit Agreement Obligations (other than any continuing inchoate indemnity obligations) (and termination of all Revolving Commitments), the Lenders.  Nothing in this subsection (g) shall alter the rights of the Administrative Agent under Section 10.06 of the Credit Agreement (Resignation of the Administrative Agent).

(h)           Release of Excess Amounts in Collateral Account.  From time to time prior to the termination of this Agreement, so long as no Event of Default exists, upon request of the Pledgor, the Administrative Agent shall instruct the depository bank with respect to the Collateral Account to distribute amounts in the Collateral Account that are in excess of the amount required to be maintained pursuant to Section 3(c) hereof to the Pledgor.

(i)           Termination.

  

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(i)           This Agreement shall be a continuing agreement in every respect and shall remain in full force and effect until such time as:  (1) the Credit Agreement Obligations (other than any continuing inchoate indemnity obligations) have been paid in full and all commitments in respect thereto have been terminated ("CAO Termination"); or, if earlier, (2) the Cash Collateral Termination Date has occurred ("CCTD Termination").  At such time, this Agreement and the security interests granted hereunder shall be automatically terminated and the Administrative Agent shall, at the expense of the Pledgor, forthwith execute and deliver all documents reasonably requested by the Pledgor evidencing such termination.

(ii)           Notwithstanding clause (i) above, in the case where termination otherwise would  occur by virtue of a CAO Termination prior to a CCTD Termination, then this Agreement shall not then terminate and instead shall continue upon the terms, and subject to the conditions, contained in this clause (ii).  For this clause (ii) to apply, such CAO Termination must be prior to (x)  payment in full of the HSBC Foreign Obligations (other than any continuing inchoate indemnity obligations) and termination of any commitments to make credit extensions thereunder, and (y)  payment in full of the JPMC Foreign Obligations (other than any continuing inchoate indemnity  obligations) and termination of any commitments to make credit extensions thereunder.  In addition, not later than the time of such CAO Termination, the Lender who is the lender thereunder (or whose subsidiary or other Affiliate is the  lender thereunder) must give the Pledgor and the Administrative Agent notice of continuation.  If both foreign facilities still are outstanding, then each such applicable Lender may give such notice of continuation.  In the case where either or both such Lenders give such notice of continuation, such requesting Lender (or such  requesting Lenders, jointly) (A) upon such CAO Termination, automatically shall assume all rights and responsibilities of the Administrative Agent hereunder (and the existing Administrative Agent shall automatically be released from its rights and responsibilities hereunder), (B) shall designate a new collateral agent for purposes  of this Agreement, and (C) shall designate an account into which the amounts in the Collateral Account  (after giving effect to any release requested by the Pledgor under Section 5(h) hereof) shall be  transferred.  If such replacement and such transfer shall not have occurred within two Business  Days after the day on which this Agreement otherwise would have terminated but for this clause  (ii), then this clause (ii) automatically shall cease to apply and this Agreement automatically shall  terminate pursuant to clause (i) above.

(iii)           If this Agreement does not terminate by virtue of the application of clause (ii) of  this subsection, then promptly thereafter the Pledgor and the replacement collateral agent shall  negotiate in good faith for the purpose of amending this Agreement to reflect its continuing  applicability only to the HSBC Foreign Obligations Guarantee and/or the JPMC Foreign  Obligations Guarantee, as the case may be.

(j)           Concerning the Administrative Agent.

 

(i)           The obligations of the Administrative Agent hereunder to the holders of HSBC Foreign Obligations and/or JPMC Foreign Obligations shall be limited solely to (A) holding Collateral for the ratable benefit of such holders for so long as (1) any HSBC Foreign Obligations and/or JPMC Foreign Obligations remain outstanding and (2) any Credit Agreement Obligations are secured by such Collateral, (B) subject to the instructions of the Required Lenders, enforcing the rights of the holders of Secured Obligations hereunder in respect of Collateral and (C) distributing any proceeds received by the Administrative Agent from the sale, collection or realization of the Collateral to the holders of Secured Obligations in accordance

 

  

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with the terms of this Agreement.  No holder of HSBC Foreign Obligations and/or JPMC Foreign Obligations (in its capacity as such) shall be entitled to exercise (or to direct the Administrative Agent to exercise) any rights or remedies hereunder with respect to the Secured Obligations, including without limitation the right to receive any payments, enforce any Liens, request any action, institute proceedings, give any instructions, make any election, notice account debtors, make collections, sell or otherwise foreclose on any portion of the Collateral or execute any amendment, supplement, or acknowledgment hereof.  This Agreement shall not create any liability of the Administrative Agent or the Lenders to the holders of HSBC Foreign Obligations and/or JPMC Foreign Obligations by reason of actions taken with respect to the creation, perfection or continuation of Liens on the Collateral, actions with respect to the occurrence of an Event of Default, actions with respect to the foreclosure upon, sale, release, or depreciation of, or failure to realize upon, any of the Collateral or actions with respect to the collection of any claim for all or any part of the Secured Obligations from any account debtor, guarantor or any other party or the valuation, use or protection of the Collateral.

 

(ii)           The Administrative Agent shall not have any duty or obligation to manage, control, use, sell, dispose of or otherwise deal with the Collateral, or, to otherwise take or refrain from taking any action under, or in connection with, this Agreement, except, as expressly provided by the terms and conditions of this Agreement.  The Administrative Agent may take, but shall have no obligation to take, any and all such actions under this Agreement or otherwise as it shall deem to be in the best interests of the holders of the Secured Obligations in order to maintain the Collateral and protect and preserve the Collateral and the rights of the holders of the Secured Obligations hereunder.

 

(iii)           The Administrative Agent shall not be responsible in any manner whatsoever for the correctness of any recitals, statements, representations or warranties contained herein.  The Administrative Agent makes no representation as to the value or condition of the Collateral or any part thereof, as to the title of the Pledgor to the Collateral, as to the security afforded by this Agreement or, as to the validity, execution, enforceability, legality or sufficiency of this Agreement, and the Administrative Agent shall incur no liability or responsibility in respect of any such matters.  The Administrative Agent shall not be required to ascertain or inquire as to the performance by the Pledgor or any of its Affiliates of the Secured Obligations.

 

(iv)           The Administrative Agent shall not be responsible for insuring the Collateral, for the payment of taxes, charges, assessments or liens upon the Collateral or otherwise as to the maintenance of the Collateral.  The Administrative Agent shall have no duty to the holders of the Secured Obligations as to any Collateral in its possession or control or in the possession or control of any agent or nominee of the Administrative Agent or any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto, except the duty to accord such of the Collateral as may be in its possession substantially the same care as it accords its own assets and the duty to account for monies received by it.

 

(v)           The Administrative Agent may execute any of the powers granted under this Agreement and perform any duty hereunder either directly or by or through agents or attorneys-in-fact, and shall not be responsible for the gross negligence or willful misconduct of any agents or attorneys-in-fact selected by it with reasonable care and without gross negligence or willful misconduct.

 

(vi)           The Administrative Agent shall not be deemed to have actual, constructive, direct or indirect notice or knowledge of the occurrence of any Event of Default unless and until

 

  

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the Administrative Agent shall have received a notice of Event of Default or a notice from any of the Pledgor or the Lenders to the Administrative Agent in its capacity as Administrative Agent indicating that an Event of Default has occurred.  The Administrative Agent shall have no obligation either prior to or after receiving such notice to inquire whether an Event of Default has, in fact, occurred and shall be entitled to rely conclusively, and shall be fully protected in so relying, on any notice so furnished to it.

 

 

[Remainder of Page Blank.  Signature Pages Follow.]

 

  

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The Pledgor has caused a counterpart of this Agreement to be duly executed and delivered as of the date first above written.

	
PLEDGOR

	
VOLT INFORMATION SCIENCES, INC.,

a New York corporation

 

 

	  	By:	
/s/ Jack Egan

	  	
Name:

	
Jack Egan

	  	
Title:

	
Senior Vice President & CFO

	
 

 

 

	  
	
Accepted and agreed as of the date first above written.

 

BANK OF AMERICA, N.A.,

as Administrative Agent

 

 

	  
	By:  	 /s/ Roberto Salazar	 	 
	Name:  	Roberto Salazar	 
	
Title:  

	
Assistant Vice President

	 

  

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ANNEX A

INCREASE OF STIPULATED FOREIGN GUARANTEE AMOUNT

	
To:

	
Bank of America, N.A., as Administrative Agent

	  	  
	
Re:

	
Security Agreement, dated as of May 11, 2010, by and between Volt Information Sciences, Inc. (the “Pledgor”), and Bank of America, N.A. in its capacity as administrative agent (the “Administrative Agent”).

Reference is made to the Security Agreement, the defined terms of which are incorporated herein by reference.

As contemplated by the Security Agreement, [INSERT NAME OF LENDER] (the “Lender”) and the Pledgor hereby request that the Stipulated Foreign Guarantee Amount with respect of the [HSBC][JPMC] Foreign Obligations Guarantee be increased by $____________ [INSERT REQUESTED INCREASE AMOUNT] (the “Increase Amount”), which shall increase the Stipulated Foreign Guarantee Amount with respect of the [HSBC][JPMC] Foreign Obligations Guarantee from $__________________ [INSERT EXISTING AMOUNT] to $__________________ [INSERT NEW AMOUNT].

The Pledgor and the Lender represent to the Administrative Agent that as of the date hereof, no advances or extensions of credit have been made by the Lender (or any of its subsidiaries or Affiliates) to the Pledgor (or any of its subsidiaries or Affiliates) in respect of the Increase Amount.

The Pledgor hereby agrees, as a condition precedent to the effectiveness of this agreement, to deposit $____________ [INSERT AMOUNT NECESSARY SO THAT AFTER GIVING EFFECT TO SUCH DEPOSIT, THE BALANCE OF THE COLLATERAL ACCOUNT IS AT LEAST 105% OF THE NEW BASELINE AMOUNT] in the Collateral Account.

Upon confirmation by the Administrative Agent that such funds have been deposited in the Collateral Account, the Stipulated Foreign Guarantee Amount with respect of the [HSBC][JPMC] Foreign Obligations Guarantee shall be immediately increased to $____________ [INSERT NEW AMOUNT].

This the _____ day of _________________, ________.

	
VOLT INFORMATION SCIENCES, INC.

	
[LENDER]

	  	  
	
By: ________________________________

Name:

Title:

	
By: ________________________________

Name:

Title:

Accepted and agreed this ____ day of ____________, _______.

	
BANK OF AMERICA, N.A., as Administrative Agent

	  
	  	  
	
By: ________________________________

Name:

Title:

	  

 

 

 

 10Unassociated Document

     

    
 

    STOCKHOLDERS
AGREEMENT

     

    This
STOCKHOLDERS AGREEMENT, dated as of May 10, 2010 (this “Agreement”), is entered into
by and among Jacksonville Bancorp, Inc., a Florida corporation (“JBI”), Atlantic BancGroup,
Inc., a Florida corporation (“ABI”), and each of the
stockholders of ABI, whose names appear on the signature pages hereto (each a
“Stockholder,” and
together, the “Stockholders”).
   Capitalized terms not
otherwise defined in this Agreement shall have meanings given to such terms in
the Merger Agreement.

     

    WHEREAS,
concurrently with the execution and delivery of this Agreement, JBI and ABI are
entering into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant
to which (and on the terms and subject to the conditions set forth in therein),
among other things, ABI will merge with and into JBI (the “Merger”) and each issued and
outstanding share of common stock, par value $0.01 per share, of ABI (the “Common Stock”) will be
converted into the right to receive the Merger consideration set forth in the
Merger Agreement; and

     

    WHEREAS,
as of the date hereof, each Stockholder is the Beneficial Owner (defined below)
of such number of shares of Common Stock as is set forth by the name of such
Stockholder on the signature page hereto, and the Stockholders collectively are
the Beneficial Owners and record owners of, and have the sole right to vote and
dispose of, the aggregate number of shares of Common Stock set forth on the
signature page hereto (the “Owned Shares,” and together
with any shares of Common Stock of which any Stockholder acquires Beneficial
Ownership after the date hereof and prior to the termination hereof, whether
upon purchase or otherwise, are collectively referred to herein as the “Covered Shares”);
and

     

    WHEREAS,
as an inducement and condition to entering into the Merger Agreement, JBI has
required that the Stockholders agree, and the Stockholders have agreed, to enter
into this Agreement.

     

    NOW,
THEREFORE, in consideration of the representations, warranties, covenants and
agreements set forth herein, the parties hereto agree as follows:

     

    ARTICLE
I

    VOTING
AGREEMENT

    Section
1.01            Agreement to
Vote. 
(a)  Each Stockholder undertakes that, prior to any termination in
accordance with Section 4.01 hereof, at such time as ABI conducts a meeting of,
or otherwise seeks a vote or consent of, its stockholders in connection with the
approval and adoption of the Merger Agreement and the Merger (any such meeting
or any adjournment thereof, or such consent process, the “ABI Stockholders’ Meeting”),
such Stockholder shall, and shall cause its Affiliates to, vote or provide a
consent (or cause to be voted or to provide a consent) with respect to all
Covered Shares Beneficially Owned by such Stockholder or its Affiliates, as the
case may be, and over which such Stockholder or one of its Affiliates has voting
power, in favor of the Merger Agreement and the Merger and each of the other
actions contemplated by the Merger Agreement and this Agreement and actions
required in furtherance thereof and hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

          
(b)           Without
limiting the foregoing, it is understood that the obligations under this
Section 1.01 shall not be affected by any recommendation of the board of
directors of ABI as to the Merger at the time of any such meeting or consent
solicitation.

     

    (c)         At
any ABI Stockholders’ Meeting or at any adjournment thereof or in any other
circumstances upon which the vote, consent or other approval of ABI’s
stockholders is sought, each Stockholder shall, and shall cause its Affiliates
to, vote or provide a consent (or cause to be voted or to provide a consent)
with respect to all Covered Shares Beneficially Owned by such Stockholder or its
Affiliates, as the case may be, and over which such Stockholder or one of its
Affiliates has voting power, against (i) any Acquisition Proposal or
Acquisition Agreement, including, without limitation, any merger, consolidation
or exchange agreement or merger or exchange (other than the Merger Agreement),
consolidation, combination, sale of substantial assets, reorganization,
recapitalization, dissolution, liquidation or winding up of or by ABI, or
(ii) any amendment of ABI’s articles of incorporation or bylaws or other
proposal or transaction involving ABI, which amendment or other proposal or
transaction would in any manner delay, impede, frustrate, prevent or nullify the
Merger Agreement or the Merger (each of the foregoing in clause (i) or (ii)
above, a “Competing
Transaction”).

     

    ARTICLE
II

    REPRESENTATIONS
AND WARRANTIES OF STOCKHOLDERS

    Each
Stockholder, severally and not jointly, represents and warrants to JBI as
follows:

     

    Section
2.01              Authority;
Authorization.  (a)  Such
Stockholder has all requisite power and authority to execute and deliver this
Agreement and to perform such Stockholder’s obligations hereunder.

     

    (b)         This
Agreement has been duly and validly authorized, executed and delivered by such
Stockholder and, assuming the authorization, execution and delivery of this
Agreement by JBI and each other Stockholder party hereto, constitutes a legal,
valid and binding obligation of such Stockholder, enforceable against such
Stockholder in accordance with its terms.

     

    (c)         If
such Stockholder is married and the Owned Shares set forth by the name of such
Stockholder on the signature page hereto opposite such Stockholder’s name
constitute property owned jointly with Stockholders’ spouse, this Agreement
constitutes the valid and binding agreement of such Stockholder’s
spouse.  If this Agreement is being executed in a representative or
fiduciary capacity, the Person signing this Agreement has full power and
authority to enter into and perform this Agreement.

     

    Section
2.02            Ownership of
Securities.  (a)  Such Stockholder is, and at all times
during the term of this Agreement will be, the record and Beneficial Owner of
the Covered Shares set forth by the name of such Stockholder on the signature
page hereto, and such Stockholder has, 

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    and at
all times during the term of this Agreement will have, good and marketable title
(which may include holding in nominee or “street name”) to all such Covered
Shares, free and clear of any Lien and any other restriction (including any
restriction on the right to vote or otherwise dispose of the Covered Shares)
other than as created by this Agreement.

     

    (b)         Except
for the Covered Shares set forth by the name of such Stockholder on the
signature page hereto, such Stockholder does not Beneficially Own any shares of
the capital stock of ABI.

     

    (c)         For
the purposes of this Agreement, the following terms shall have the meanings
assigned below:

     

    (i)           “Beneficially Owned” or “Beneficial Ownership” has the
meaning given to such term in Rule 13d-3 under the Exchange Act (disregarding
the phrase “within 60 days” in paragraph (d)(1)(i) thereof).  Without
limiting the generality of the foregoing, a person shall be deemed to be the
Beneficial Owner of shares (A) which such person or any of its Affiliates
or associates (as such term is defined in Rule 12b-2 under the Exchange Act)
beneficially owns, directly or indirectly, (B) which such person or any of
its Affiliates or associates (as such term is defined in Rule 12b-2 of the
Exchange Act) has, directly or indirectly, (1) the right to acquire (whether
such right is exercisable immediately or subject only to the passage of time),
pursuant to any agreement, arrangement or understanding or upon the exercise of
consideration rights, exchange rights, warrants, options or otherwise, or (2)
the right to vote pursuant to any agreement, arrangement or understanding or
(C) which are beneficially owned, directly or indirectly, by any other
persons with whom such person or any of its Affiliates or associates has any
agreement, arrangement or understanding for the purpose of acquiring, holding,
voting or disposing of such shares.

     

    (ii)           “Beneficial Owner” means, with
respect to any securities, a Person who has Beneficial Ownership of such
securities.

     

    Section
2.03          Non-Contravention.
(a)  The
execution and delivery of this Agreement by such Stockholder does not, and the
performance of this Agreement by such Stockholder will not, (i) violate,
conflict with, or result in the breach of or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, or
result in the termination of, or accelerate the performance required by, or
result in a right of termination or acceleration under, any note, bond,
mortgage, indenture, lease, license, contract, agreement or other instrument or
obligation to which such Stockholder is a party or by which any of his
properties (including the Covered Shares) may be bound, or (ii) violate or
conflict with or require any consent, approval, or notice under, any Order or
Law applicable to such Stockholder or by which any of his respective properties
may be bound.

     

    (b)         There
is no action pending or, to the knowledge of such Stockholder, threatened
against such Stockholder that questions the validity of this Agreement or any
action taken or to be taken by such Stockholder in connection with this
Agreement.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    (c)           Without
limiting the generality of the foregoing, all proxies or powers-of-attorney
heretofore given by such Stockholder in respect of any of the Owned Shares, if
any, are not irrevocable and all such proxies and powers-of-attorney have been
properly revoked or are no longer in effect as of the date hereof.

     

    Section
2.04           Reliance by
JBI.   Such
Stockholder understands and acknowledges that JBI is entering into the Merger
Agreement in reliance upon such Stockholder’s execution, delivery and
performance of this Agreement.

     

    Section
2.05            No
Broker.  No broker, investment banker, financial adviser or
other Person is entitled to any broker’s, finder’s, financial adviser’s or other
similar fee or commission in connection with the transactions contemplated
hereby based upon arrangements made by or on behalf of the Stockholder in such
capacity.

     

    ARTICLE
III

    COVENANTS

    Section
3.01            No
Solicitation. 
Each of the Stockholders shall not and shall cause its Affiliates not to
directly or indirectly solicit, initiate or encourage any inquiries or proposals
from, discuss or negotiate with, or provide any non-public information to, any
Person relating to, or otherwise facilitate, any Acquisition Proposal other than
the Merger Agreement and the Merger.  Nothing in this Section 3.01
shall prohibit a Stockholder from (i) furnishing information (including
non-public information) with respect to ABI to any Person in connection with an
Acquisition Proposal or (ii) participating in negotiations with any Person
regarding an Acquisition Proposal, as permitted (but only as permitted) by
Section 7.6 of the Merger Agreement.  In addition, no Stockholder or
any of its Affiliates shall, directly or indirectly, make any proposal which
constitutes, or could reasonably be expected to lead to, an Acquisition
Proposal; provided that, nothing herein shall prevent a Stockholder from
presenting to the other stockholders of ABI an Acquisition Proposal presented by
any Person (other than such Stockholder or its Affiliates).

     

    Section 3.02          Restrictions on Transfer and
Proxies; Non-Interference.  (a)  Each Stockholder
undertakes that, except as contemplated by this Agreement or the Merger
Agreement, such Stockholder shall not and shall cause its Affiliates not to (i)
grant or agree to grant any proxy or power-of-attorney with respect to any
Covered Shares (except pursuant to this Agreement), (ii) deposit any Covered
Shares into a voting trust or enter into any voting agreement or understanding
with respect to any Covered Shares (except pursuant to this Agreement) or (iii)
Transfer or agree to Transfer any Covered Shares other than with JBI’s prior
written consent.  For purposes of this Agreement, “Transfer” shall mean, with
respect to a security, to offer, sell, contract to sell, pledge or otherwise
dispose of (or enter into any transaction which is designed to, or might
reasonably be expected to, result in the disposition of (whether by actual
disposition or effective economic disposition due to cash settlement or
otherwise)), directly or indirectly, any shares of capital stock of ABI or any
securities convertible into, or exercisable or exchangeable for such capital
stock, or publicly announce an intention to effect any such
transaction.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (b)      Each
Stockholder further agrees not to take any action that would or is reasonably
likely to (i) make any representation or warranty contained herein untrue or
incorrect in any material respect or (ii) have the effect of preventing such
Stockholder from performing its obligations under this Agreement.

     

    (c)         ABI
agrees with, and covenants to, JBI that ABI shall not register the transfer of
any certificate representing any of the Covered Shares unless such transfer is
made to JBI or otherwise in compliance with this Agreement.  Each
Stockholder agrees that, upon the request of JBI, such Stockholder will tender
to ABI any and all certificates and instruments representing such Stockholder’s
Covered Shares and ABI will prominently inscribe upon such certificates the
following legend:

     

    THE
SHARES OF COMMON STOCK, $.01 PAR VALUE PER SHARE, OF ATLANTIC BANCGROUP, INC.
(THE “COMPANY”) REPRESENTED BY THIS CERTIFICATE OR HEREAFTER ACQUIRED IN RESPECT
OF SUCH SHARES ARE SUBJECT TO A STOCKHOLDERS AGREEMENT WITH JACKSONVILLE
BANCORP, INC. AND THE COMPANY DATED AS OF MAY 10, 2010, AND NONE OF SUCH SHARES,
NOR ANY INTEREST THEREIN MAY BE SOLD, PLEDGED, HYPOTHECATED, DONATED OR
OTHERWISE TRANSFERRED OR DISPOSED OF, EXCEPT IN ACCORDANCE
THEREWITH.  COPIES OF SUCH AGREEMENT MAY BE OBTAINED AT THE PRINCIPAL
EXECUTIVE OFFICES OF THE COMPANY.”

    

    Section
3.03             Dissenters’
Rights.   Each
Stockholder agrees not to exercise any dissenters’ or appraisal rights
(including, without limitation, under any set forth in Section 607.1301, et.
seq., Florida Statutes) as to any shares of capital stock of ABI which may arise
with respect to the Merger.

     

    Section
3.04             Stop
Transfer. 
Each Stockholder agrees that it shall not request that ABI register the transfer
(book-entry or otherwise) of any certificate or uncertificated interest
representing any Covered Shares, unless such transfer is made in compliance with
this Agreement.

     

    Section
3.05             Further Assurances;
Cooperation.   (a)  Each
Stockholder, without further consideration, will (provided that JBI is not in
material breach of the terms of the Merger Agreement), (i) use all reasonable
efforts to cooperate with JBI and ABI in furtherance of the transactions
contemplated by the Merger Agreement, (ii) promptly execute and deliver such
additional documents that may be reasonably necessary in furtherance of the
transactions contemplated by the Merger Agreement, and take such reasonable
actions as are necessary or appropriate to consummate such transactions and
(iii) promptly provide any information, and make all filings, reasonably
requested by ABI for any regulatory application or filing made or approval
sought in connection with such transactions (including filings with any
Regulatory Authority).

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (b)           Each
Stockholder hereby consents, and shall cause its Affiliates to consent, to the
publication and disclosure in the Proxy Statement and the S-4 Registration
Statement (and, as and to the extent otherwise required by Law or any
Governmental Authority, in any other documents or communications provided by JBI
or ABI to any Governmental Authority or to securityholders of ABI or JBI) of
such Stockholder’s identity and Beneficial Ownership of the Covered Shares, the
nature of such Stockholder’s commitments, arrangements and understandings under
and relating to this Agreement and the Merger Agreement and any additional
requisite information regarding the relationship of such Stockholder and its
Affiliates with JBI and its Subsidiaries and/or ABI and its
Subsidiaries.

     

    
ARTICLE IV

    MISCELLANEOUS

    Section
4.01           Termination.  This
Agreement shall terminate and become null and void upon the earlier of (a) the
Effective Time and (b) the termination of the Merger Agreement in accordance
with its terms.  Any such termination shall be without prejudice to
liabilities arising hereunder before such termination.

     

    Section
4.02           Stockholder Capacity.
  Notwithstanding
anything herein to the contrary, each Stockholder has entered into this
Agreement solely in such Stockholder’s capacity as the Beneficial Owner of
Covered Shares and, if applicable, nothing herein shall limit or affect any
actions taken or omitted to be taken at any time by such Stockholder in his or
her capacity as an officer or director of ABI.

     

    Section
4.03           Amendment; Waivers.
 This
Agreement may not be amended, changed, supplemented, or otherwise modified or
terminated, except upon the execution and delivery of a written agreement
executed by the parties hereto; provided, that JBI
may waive compliance by any Stockholder with any representation, agreement or
condition otherwise required to be complied with by such Stockholder under this
Agreement or release such Stockholder from its obligations under this Agreement,
but any such waiver or release shall be effective only if in writing and
executed by JBI and only with respect to such Stockholder.

     

    Section
4.04            Expenses.  Subject
to Section 4.10(c), all costs and expenses incurred in connection with this
Agreement and the transactions contemplated hereby shall be paid by the party
incurring such expenses.

     

    Section
4.05           Notices.  All
notices, requests, claims, demands and other communications hereunder shall be
in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by facsimile or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the
following addresses (or at such other address for a party as shall be specified
by like notice):

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (a)      if
to any Stockholder:

     

    c/o Atlantic BancGroup,
Inc.

    1315 South Third Street

    Jacksonville Beach, Florida
32250

    Attention: Barry W. Chandler, President
and Chief Executive Officer

    Facsimile: (904) 247-9402

    

    with an
additional copy (which shall not constitute notice) to:

     

    Smith Hulsey & Busey

    225 Water
Street

    Suite
1800

    Jacksonville,
FL 32202

    Attention:
John Smith, Esquire

    Facsimile:  (904)
359-7708

    

    (b)         if
to ABI:

     

    Atlantic
BancGroup, Inc.

    1315 South Third Street

    Jacksonville Beach, Florida
32250

    Attention: Barry W. Chandler, President
and Chief Executive Officer

    Facsimile: (904) 247-9402

    

    with an
additional copy (which shall not constitute notice) to:

     

    Smith Hulsey & Busey

    225 Water
Street

    Suite
1800

    Jacksonville,
FL 32202

    Attention:
John Smith, Esquire

    Facsimile:  (904)
359-7708

    

    (c)         if
to JBI:

     

    Jacksonville Bancorp, Inc.

    100 North Laura Street

    Jacksonville,
Florida  32202

    Attention:  Gilbert
J. Pomar, III, President

    Facsimile:  (904)
421-2050

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    with an
additional copy (which shall not constitute notice) to:

     

    McGuireWoods
LLP

    Bank of
America Tower

    50 North
Laura Street , Suite 3300

    Jacksonville,
Florida  32202

    Attention:  Halcyon
E. Skinner, Esquire

    Facsimile:  (904)
360-6324

    

     

     

    Section
4.07            Entire Agreement;
Assignment.  This
Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes all other prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof.  Neither this Agreement, nor any of the rights
and obligations under this Agreement, shall be transferred by any party without
the prior written consent of the other parties hereto; provided that JBI may
transfer any of its rights and obligations to any direct or indirect
wholly-owned Subsidiary of JBI, but no such transfer shall relieve JBI of its
obligations hereunder.

     

    Section
4.07           Parties in
Interest.  This Agreement shall be binding upon and inure
solely to the benefit of each party hereto and their respective successors and
permitted assigns.  Nothing in this Agreement, express or implied, is
intended to or shall confer upon any other Person any rights, benefits or
remedies of any nature whatsoever under or by reason of this
Agreement.

     

    Section
4.08            Severability.  Whenever
possible, each provision or portion of any provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable Law but
if any provision or portion of any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable Law or
rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or portion of any provision in such jurisdiction,
and this Agreement will be reformed, construed and enforced in such jurisdiction
as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.

     

    Section
4.09            Specific Performance;
Remedies. 
Each of the Stockholders acknowledges and agrees that in the event of any breach
of this Agreement, JBI would be irreparably and immediately harmed and could not
be made whole by monetary damages.  It is accordingly agreed that (a)
each of the Stockholders will waive, in any action for specific performance, the
defense of adequacy of a remedy at law, and (b) JBI shall be entitled, in
addition to any other remedy to which it may be entitled at law or in equity, to
compel specific performance of this Agreement.  All rights, powers and
remedies provided under this Agreement or otherwise available in respect hereof
at law or in equity shall be cumulative and not alternative, and the exercise of
any right, power or remedy thereof by any party shall not preclude the
simultaneous or later exercise of any other such right, power or remedy by such
party; provided,
however, JBI shall have no right to consequential damages for any alleged
breach of this Agreement by the Stockholders.  The failure of any
party hereto to exercise any right, power or remedy provided under this
Agreement or otherwise available in respect hereof at law or in equity, or to
insist upon compliance by any other party hereto with its obligations hereunder,
and any custom or practice of the parties at variance with the terms hereof,
shall not constitute a waiver by such

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    party of
its right to exercise any such or other right, power or remedy or to demand such
compliance.

     

    Section
4.10           Governing Law;
Jurisdiction.   (a)  This
Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, without giving effect to the choice of law principles
thereof.

     

    (b)         Each
of the parties hereto (i) consents to submit itself to the personal
jurisdiction of the courts of the State of Florida or the Federal courts of the
United States of America located in the State of Florida if any dispute arises
under this Agreement or any transaction contemplated by this Agreement,
(ii) agrees that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court,
(iii) waives any right to trial by jury with respect to any action, suit or
proceeding related to or arising out of this Agreement or any transaction
contemplated by this Agreement, (iv) waives any objection to the laying of
venue of any action, suit or proceeding arising out of this Agreement or any
transaction contemplated hereby in any such court, (v) waives and agrees
not to plead or claim that any such action, suit or proceeding brought in any
such court has been brought in an inconvenient forum and (vi) agrees that a
final judgment in any such action, suit or proceeding in any such court shall be
conclusive and may be enforced in any other jurisdiction by suit on the judgment
or in any other manner provided by applicable Law.

     

    (c)         Notwithstanding
any other provision in this Agreement, in the event of any action arising out of
or resulting from this Agreement, the prevailing party shall be entitled to
recover its costs and expenses (including reasonable attorneys’ fees and
expenses) incurred in connection therewith.

     

    Section
4.11            Headings.  The
descriptive headings herein are inserted for convenience of reference only and
are not intended to be part of or to affect the meaning or interpretation of
this Agreement.

     

    Section
4.12           Counterparts.  This
Agreement may be executed in one or more counterparts (including by facsimile),
each of which shall be deemed to constitute an original, but all of which
together shall constitute one and the same instrument.

     

    [SIGNATURE
PAGES FOLLOW]

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be duly
executed as of the day and year first above written.

      

    
      
        
          	 
      	
                  JACKSONVILLE
      BANCORP, INC.

                   

                
	 
      	
                  By:

                	 
      	 
      
	 
      	 
      	
                  Name:

                	
                  Gilbert
      J. Pomar, III

                
	 
      	 
      	
                  Title:

                	
                  President

                
	 
      	 
      	 
      	 
      
	 
      	
                  ATLANTIC
      BANCGROUP, INC.

                   

                
	 
      	
                  By:

                	 
      	 
      
	 
      	 
      	
                  Name:

                	
                  Barry
      W. Chandler

                
	 
      	 
      	
                  Title:

                	
                  President
      and Chief Executive
Officer

                

        

    

     

    

     

    

     

    [SIGNATURE
PAGE FOR STOCKHOLDERS FOLLOWS]

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, each of the parties has caused this Agreement to be duly
executed as of the day and year first above written.

     

    STOCKHOLDERS
OF ATLANTIC BANCGROUP, INC.:

     

    

    
      	
               

               ­­­­­­­­­­­­­­­­­­­­__________________________________

              Name:
      Dr. Frank J. Cervone

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  14,740

              Shares
      of Common Stock subject to

              options:  -0-

            	
              ­­­­­­­­­­­­­­­­­­­­

              __________________________________

              Name:
      Gordon K. Watson

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  80,000

              Shares
      of Common Stock subject to

              options:  -0-

               

               

            
	
               

               

               ­­­­­­­­­­­­­­­­­­­­__________________________________

              Name:  Barry
      W. Chandler

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  16,000

              Shares
      of Common Stock subject to

              options:  -0-

            	
              ­­­­­­­­­­­­­­­­­­­­

               

              __________________________________

              Name:  Dr.
      Conrad L. Williams

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  6,120

              Shares
      of Common Stock subject to

              options:  -0-

               

               

            
	
               

               

               ­­­­­­­­­­­­­­­­­­­­__________________________________

              Name:  Donald
      F. Glisson, Jr.

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  51,451

              Shares
      of Common Stock subject to

              options:  -0-

            	
              ­­­­­­­­­­­­­­­­­­­­

               

              __________________________________

              Name:
      Dennis M. Wolfson

              Shares
      of Common Stock Beneficially Owned   

              (excluding
      shares issuable upon exercise
      of  options):  13,000

              Shares
      of Common Stock subject to

              options:  -0-

            

    

    

     

    11

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