DESCRIPTION SC13D FOR CARROLL M. EDWARDS, PATRICK D. MOLAMPHY, THOMAS M.
MCINNIS, PATRICK PERROTTA AND HILTON D. HAINES, JR.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO.__ )*
Carolina Fincorp, Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
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(Title of Class of Securities)
143874-10-5
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(CUSIP Number)
Patrick D. Molamphy, P.O. Box 1324, Rockingham, North Carolina 28379
(910) 997-4581
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
July 14, 1999
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [ ]. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
SCHEDULE 13D
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CUSIP No. 143874-10-5 Page 2 of 6 Pages
- --------------------------------- ---------------------------------
<TABLE>
<CAPTION>
<S> <C>
- ------ --------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Carroll M. Edwards
- ------ --------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [x]
(b) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------ --------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF; 00
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------ ------ -------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY
OWNED BY 55,000
EACH ------ -------------------------------------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 0
------ -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
55,000
------ -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------ --------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
55,000
- ------ --------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
2.9%
- ------ --------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- ------ --------------------------------------------------------------------------------------------------------------
</TABLE>
2 of 6
<PAGE>
SCHEDULE 13D
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CUSIP No. 143874-10-5 Page 3 of 6 Pages
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<TABLE>
<CAPTION>
<S> <C>
- ------ --------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Patrick D. Molamphy
- ------ --------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [X]
(b) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
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4 SOURCE OF FUNDS*
PF
- ------ --------------------------------------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------ ------ -------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY
OWNED BY 17,600
EACH ------ -------------------------------------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 0
------ -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
17,600
------ -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------ --------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
17,600
- ------ --------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [ ]
- ------ --------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
- ------ --------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- ------ --------------------------------------------------------------------------------------------------------------
</TABLE>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 143874-10-5 Page 4 of 6 Pages
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<TABLE>
<CAPTION>
<S> <C>
- ------ --------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Thomas M. McInnis
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [x]
(b) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------ --------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
- ------ --------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------ ------ -------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY
OWNED BY 13,000
EACH ------ -------------------------------------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 0
------ -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
13,000
------ -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------ --------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
13,000
- ------ --------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.7%
- ------ --------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- ------ --------------------------------------------------------------------------------------------------------------
</TABLE>
4 of 6
<PAGE>
SCHEDULE 13D
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CUSIP No. 143874-10-5 Page 5 of 6 Pages
- --------------------------------- ---------------------------------
<TABLE>
<CAPTION>
<S> <C>
- ------ --------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Patrick Perrotta
- ------ --------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [X]
(b) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------ --------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
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5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------ ------ -------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY
OWNED BY 9,000
EACH ------ -------------------------------------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 0
------ -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
9,000
------ -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------ --------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
9,000
- ------ --------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.5%
- ------ --------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- ------ --------------------------------------------------------------------------------------------------------------
</TABLE>
5 of 6
<PAGE>
SCHEDULE 13D
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CUSIP No. 143874-10-5 Page 6 of 6 Pages
- --------------------------------- ---------------------------------
<TABLE>
<CAPTION>
<S> <C>
- ------ --------------------------------------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY)
Hilton D. Haines, Jr.
- ------ --------------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS) (a) [x]
(b) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
3 SEC USE ONLY
- ------ --------------------------------------------------------------------------------------------------------------
4 SOURCE OF FUNDS (SEE INSTRUCTIONS)
PF
- ------ --------------------------------------------------------------------------------------------------------------
5 CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
- ------------------ ------ -------------------------------------------------------------------------------------------
NUMBER OF SHARES 7 SOLE VOTING POWER
BENEFICIALLY
OWNED BY 4,000
EACH ------ -------------------------------------------------------------------------------------------
REPORTING 8 SHARED VOTING POWER
PERSON
WITH 0
------ -------------------------------------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
4,000
------ -------------------------------------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ------ --------------------------------------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,000
- ------ --------------------------------------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) [ ]
- ------ --------------------------------------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2%
- ------ --------------------------------------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
- ------ --------------------------------------------------------------------------------------------------------------
</TABLE>
4 of 6
<PAGE>
Introduction
This Statement constitutes the initial filing as a group of certain
individuals who are shareholders of Carolina Fincorp, Inc., a North Carolina
corporation (the "Company"). These individuals are Messrs. Carroll M. Edwards,
Patrick D. Molamphy, Thomas M. McInnis, Patrick Perrotta and Hilton D. Haines,
Jr. (the "Filing Group"). The Filing Group is filing this Statement on Schedule
13D as they may be deemed to be a "group" within the meaning of Section 13(d)(3)
of the Securities Exchange Act of 1934, as amended (the "Act").
Item 1. Security and Issues.
This statement relates to the common stock, no par value, of the
Company, whose principal executive office is at 115 South Lawrence Street,
Rockingham, North Carolina 27380-1597.
Item 2. Identity and Background.
(a)-(c) This statement is filed on behalf of each member of the Filing
Group. The business address and the principal occupation or employment of each
member of the Filing Group are as follows:
i. Carroll M. Edwards
Chief Executive Officer
Edwards Wood Products, Inc.
P. O. Box 219
Marshville, NC 28103
ii. Patrick D. Molamphy
Agent for Nationwide Financial
1194 Rockingham Road
Rockingham, NC 28379
iii.Thomas M. McInnis
Real Estate Broker and Auctioneer
Iron Horse Auction Co., Inc.
P. O. Box 1267
Rockingham, NC 28380
iv. Patrick Perrotta
Investor (self-employed)
3548 Dunlin Shore Court
Norcross, GA 30092
v. Hilton D. Haines, Jr.
President
Haines Construction and Realty
P. O. Box 1174
Rockingham, NC 28380
<PAGE>
(d) and (e) None of Messrs. Edwards, Molamphy, McInnis, Perrotta and
Haines, during the last five years, (i) has been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors); or (ii) was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
(f) Each of Messrs. Edwards, Molamphy, McInnis, Perrotta and Haines is a
citizen of the United States of America.
Item 3. Source and Amount of Funds or Other Consideration.
Messrs. Edwards, Molamphy, McInnis, Perrotta and Haines used personal
funds in the amount of $838,268 in aggregate to purchase the shares of common
stock reported in this statement. Mr. Edwards used his margin account with J.B.
Oxford & Company, a member of the National Association of Securities Dealers,
Inc., to effect his purchase of 55,000 shares at a cost of $513,595.50. Under
the terms of Mr. Edwards' margin account he is able to borrow up to 50% of the
equity value in that account, however, purchases of the Company's common stock
are but one of many transactions that Mr. Edwards has consummated through his
account. Therefore, Mr. Edwards is unable, without undue effort and expense, to
assign a value to the amount of credit used to make his purchases of the Company
common stock.
Item 4. Purpose of Transaction.
The Filing Group believes that the Board of Directors of the Company
needs new membership in order to maximize shareholder values. The Filing Group
intends to support efforts by shareholders to elect new members to the Board of
Directors at the 1999 Annual Meeting of Shareholders. Mr. Molamphy has organized
The Committee to Enhance Shareholder Value that intends to propose a slate of
candidates for that meeting. The Filing Group intends to take steps to maximize
shareholder value through all means possible not excluding the possible sale or
merger of the Company.
The members of the Filing Group may purchase additional shares of common
stock of the Company, depending upon, among other things, market conditions, the
availability of shares to be purchased, the price for the shares and the
financial capability of the members of the Filing Group. In addition, the
members of the Filing Group may elect to dispose of shares of the Company's
Common Stock in their individual discretion.
Other than as described above, the members of the Filing Group have no
plans or proposals which would result in any of the consequences listed in
paragraphs (a)-(j) of Schedule 13D.
Item 5. Interest in Securities of the Issuer.
(a) and (b) Set forth in the table below are the number and percentage
of shares of common stock beneficially owned, as well as the nature of ownership
for each of the Filing Group as of the date herewith. The percentages are based
upon 1,905,545 shares of common
<PAGE>
stock outstanding as reported by the Company in its Quarterly Report on Form
10-QSB for the period ended March 31, 1999.
<TABLE>
<CAPTION>
Number of Shares Number of Shares Aggregate
of Beneficially of Beneficially Number of Percentage
Owned With Sole Owned with Shared Shares of Shares
Voting and Voting and Beneficially Beneficially
Name Dispositive Power Dispositive Power Owned Owned
---- ----------------- ----------------- ------------- -------------
<S> <C>
Carroll M. Edwards 55,000 0 55,000 2.89%
Patrick D. Molamphy 17,600 0 17,600 0.92%
Thomas M. McInnis 13,000 0 13,000 0.68%
Patrick Perrotta 9,000 0 9,000 0.47%
Hilton D. Haines, Jr. 4,000 0 4,000 0.21%
</TABLE>
As a group, the Filing Group beneficially owned 98,600 shares of common
stock, constituting approximately 5.17% of the outstanding common stock of the
Company.
(c) Set forth in the table below is a description of transactions in the
common stock of the Company by any member of the Filing Group in the period from
May 15, 1999 to the date of this Statement.
<TABLE>
<CAPTION>
Date of Number Price
Name Transaction of Shares Per Share Where and How Effected
---- ----------- --------- --------- -----------------------
<S> <C>
Carroll M. Edwards 5/17/99 400 $9.625 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/17/99 6,000 $9.500 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/18/99 3,000 $9.625 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/19/99 5,000 $9.500 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/20/99 1,300 $9.500 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/25/99 700 $9.500 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 5/27/99 5,000 $9.250 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 6/02/99 5,000 $9.125 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 6/23/99 5,000 $9.375 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 7/06/99 1,000 $9.250 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 7/08/99 3,000 $9.375 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 7/12/99 1,000 $9.250 Nasdaq SmallCap Market
<PAGE>
Open Market Purchase
Carroll M. Edwards 7/14/99 3,200 $9.000 Nasdaq SmallCap Market
Open Market Purchase
Carroll M. Edwards 7/19/99 1,800 $9.500 Nasdaq SmallCap Market
Open Market Purchase
Patrick D. Molamphy 6/01/99 1,000 $9.125 Nasdaq SmallCap Market
Open Market Purchase
Thomas M. McInnis 6/01/99 1,800 $9.000 Nasdaq SmallCap Market
Open Market Purchase
Thomas M. McInnis 7/14/99 700 $9.000 Nasdaq SmallCap Market
Open Market Purchase
</TABLE>
(d) No other person is known to have the right to receive, or the power
to direct the receipt of, dividends from, or the proceeds from the sale of, the
shares of common stock owned by the Filing Group and reported on this Statement.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to
Securities of the Issuer.
Each member of the Filing Group retains sole discretion as to how to
vote or as to whether to dispose the shares of common stock owned by that
member. None of the members of the Filing Group is a party to any contracts,
arrangements, or understandings with respect to any securities of the Company,
including but not limited to the transfer or voting of any of the securities,
finders fees, joint ventures, loan, or option agreements, puts or calls,
guarantees of profits, division of profits or loss or the giving or withholding
of proxies.
Item 7. Material to be Filed as Exhibits.
None.
[Signatures follow on next page]
<PAGE>
Signatures
After reasonable inquiry and to the best of my knowledge and belief, I
certify in accordance with Rule 13d-1(k)(l)(ii) that the information set forth
in this Statement is true, correct and complete.
Dated this 23rd day of July, 1999 S/
--------------------------------
Carroll M. Edwards
After reasonable inquiry and to the best of my knowledge and belief, I
certify in accordance with Rule 13d-1(k)(l)(ii) that the information set forth
in this Statement is true, correct and complete.
Dated this 21st day of July, 1999 S/
--------------------------------
Patrick D. Molamphy
After reasonable inquiry and to the best of my knowledge and belief, I
certify in accordance with Rule 13d-1(k)(l)(ii) that the information set forth
in this Statement is true, correct and complete.
Dated this 21st day of July, 1999 S/
--------------------------------
Thomas M. McInnis
After reasonable inquiry and to the best of my knowledge and belief, I
certify in accordance with Rule 13d-1(k)(l)(ii) that the information set forth
in this Statement is true, correct and complete.
Dated this 22nd day of July, 1999 S/
--------------------------------
Patrick Perrotta
After reasonable inquiry and to the best of my knowledge and belief, I
certify in accordance with Rule 13d-1(k)(l)(ii) that the information set forth
in this Statement is true, correct and complete.
Dated this 21st day of July, 1999 S/
--------------------------------
Hilton D. Haines, Jr.
