<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
HYDRON TECHNOLOGIES, INC.
-------------------------------------------
(Name of Issuer)
Common Stock, par value $.01 per share
-------------------------------------------
(Title of Class of Securities)
449020-10-6000
-------------------------------------------
(CUSIP Number)
Richard Banakus Jeffrey R. Mann, Esq.
82 Verissimo Drive Rubin Baum Levin Constant & Friedman
Novato, California 94947 30 Rockefeller Plaza, 29th Floor
(415) 897-9167 New York, New York 10112
(212) 698-7700
- -------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive
Notices and Communications)
July 28, 1997
-------------------------------------------
(Date of Event which Requires Filing of this Statement)
In 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 / /.
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).
Exhibit Index is on page 22
Page 1 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 2 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Richard Banakus (Social Security No. ###-##-####)
- ------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- ------------------------------------------------------------------------------
3 SEC USE ONLY
- ------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 1,520,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 1,520,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,520,000
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
6.1%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 2 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 3 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Hugues Lamotte (Social security no. N/A)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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
France
- -------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER 420,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 420,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
420,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.7%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 3 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 4 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Donald Bakalor (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 364,850
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 364,850
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
364,850 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 4 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 5 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Oddvin Lokken (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 68,595
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 68,595
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
68,595 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 5 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 6 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Etienne des Roys (Social security no. N/A)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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
France
- -------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER 58,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 58,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
58,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.2%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 6 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 7 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Jean-Francois Vert (Social Security No. N/A)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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
France
- -------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER 85,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 85,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
85,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 7 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 8 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Ira Alpert (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 95,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 95,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
95,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 8 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 9 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Per K. Reichborn (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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
Norway
- -------------------------------------------------------------------------------
NUMBER OF 7 SOLE VOTING POWER 404,930
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 404,930
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
404,930 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.6%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 9 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 10 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
David Baker (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 100,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 100,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
100,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.4%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 10 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 11 of 30 Pages
- -------------------------- ---------------------
- ------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Bernard D. Gold (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 146,466
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 146,466
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
146,466 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.6%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 11 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 12 of 30 Pages
- -------------------------- ---------------------
- -------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Charles Johnston (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 400,000
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 400,000
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
400,000 shares
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.6%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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 12 of 30
<PAGE>
SCHEDULE 13D
- -------------------------- ---------------------
CUSIP NO. 449020-10-6000 Page 13 of 30 Pages
- -------------------------- ---------------------
- -------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS
Karen A. Gray (Social Security No. ###-##-####)
- -------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) / /
(b) /X/
- -------------------------------------------------------------------------------
3 SEC USE ONLY
- -------------------------------------------------------------------------------
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 7 SOLE VOTING POWER 85,000(1)
SHARES -----------------------------------------------------------
BENEFICIALLY 8 SHARED VOTING POWER 0
OWNED BY -----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER 85,000(1)
REPORTING -----------------------------------------------------------
PERSON 10 SHARED DISPOSITIVE POWER 0
WITH
- -------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
85,000 shares (1)
- -------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* / /
- -------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.3%
- -------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- -------------------------------------------------------------------------------
*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.
(1) Includes 10,000 shares of Common Stock issuable upon the exercise of an
option currently exercisable with an exercise price per share equal to
$1.375, 50,000 shares of Common Stock issuable upon the exercise of an
option currently exercisable with an exercise price per share equal to
$2.50 and 10,000 shares of Common Stock issuable upon the exercise of an
option currently exercisable with an exercise price per share equal to
$2.285.
Page 13 of 30
<PAGE>
This Amendment No. 1 to the Statement on Schedule 13D amends
and supplements the Statement on Schedule 13D relating to the event date of
May 27, 1997 (the "May 27 Schedule 13D") filed by (a) Richard Banakus
("BANAKUS"); (b) Hugues M. Lamotte ("LAMOTTE"); (c) Donald Bakalor
("BAKALOR"); (d) Oddvin Lokken ("LOKKEN"); (e) Etienne des Roys ("DES ROYS");
(f) Jean-Francois Vert ("VERT"); (g) Ira Alpert ("ALPERT"); (h) Per K.
Reichborn ("REICHBORN"); (i) David Baker ("BAKER") and (j) Bernard D. Gold
("GOLD"), each relating to the Common Stock, $.01 par value per share (the
"Common Stock") of Hydron Technologies, Inc. (the "Issuer"). Capitalized
terms used herein and not defined herein shall have the meanings assigned
thereto in the May 27 Schedule 13D.
ITEM 2. IDENTITY AND BACKGROUND.
Item 2 of the May 27 Schedule 13D is hereby amended to include the
following information regarding the additional reporting persons:
This report is additionally being filed by: (k) Charles Johnston
("JOHNSTON") and (l) Karen A. Gray ("GRAY" and, collectively with Banakus,
Lamotte, Bakalor, Lokken, des Roys, Vert, Alpert, Reichborn and Baker and
Gold, the "REPORTING PERSONS").
The business address and present principal occupations of each
additional Reporting Person is as follows:
NAME BUSINESS ADDRESS PRINCIPAL OCCUPATION
Johnston 706 Ocean Drive Banker/Investor
Juno Beach, FL 33408
Page 14 of 30
<PAGE>
Gray 1107 Key Plaza, #244 Marketing/Communications
Key West, FL 33040
For the citizenship of the additional Reporting Persons, see the
information contained in item (6) of the applicable cover page of this
Amendment No. 1 to Schedule 13D.
ITEM 3. SOURCE AND AMOUNT OF FUNDS AND OTHER CONSIDERATION.
Item 3 of the May 27 Schedule 13D is amended to include the
following information regarding the additional Reporting Persons:
The net investment cost (including commissions, if any) of the
shares of Common Stock beneficially owned directly by each additional
Reporting Person is as follows:
NAME NET INVESTMENT COST
Johnston Approximately $950,000
Gray *
The shares of Common Stock purchased by Johnston were all purchased with
private funds.
* Gray received options to purchase 90,000 shares in consideration for
services rendered as an employee and as a consultant to the Issuer. On June
20, 1997, Gray exercised an option to purchase 20,000 shares of Common Stock
at an exercise price per share of $1.4375. Subsequently, Gray sold 5,000 of
such shares at a price per share of $1 9/16.
Page 15 of 30
<PAGE>
ITEM 4. PURPOSE OF THE TRANSACTION.
Item 4 of the May 27 Schedule 13D is amended to include the
following information regarding the additional Reporting Persons:
The Reporting Persons are filing this Amendment No. 1 to
Schedule 13D because, as a result of certain matters reported under
this Item 4 and Item 6 below, they may be deemed to constitute a
"group" under Rule 13d-5 promulgated under the Securities Exchange Act
of 1934, as amended ("RULE 13d-5").
The shares of Common Stock acquired by each of the Reporting
Persons were all acquired in open market brokerage transactions,
privately negotiated transactions or through the issuance or exercise
of options, in the ordinary course of business and were all made
solely for investment purposes. Although the shares of Common Stock
purchased by the Reporting Persons were acquired solely for investment
purposes, some or all of the Reporting Persons have been engaged in
ongoing discussions with management of the Issuer in order to consider
various possible actions with respect to the Issuer that might
maximize value for the Issuer's shareholders. Such discussions
concerned, among other things, the possibility of the replacement of
certain senior executive officers and directors of the Issuer and
restrictions on the payment of executive compensation and the payment
of dividends. In connection therewith, the Reporting Persons
considered soliciting proxies from other shareholders of the Issuer to
be used at the Issuer's 1997 Annual Meeting of Shareholders originally
Page 16 of 30
<PAGE>
scheduled to be held on or about August 20, 1997 (the "1997 Annual
Meeting").
By letter dated July 14, 1997, certain of the Reporting Persons requested
a shareholder list of the Issuer and other related documents for the purpose
of such solicitation. On July 22, 1997, counsel for the Reporting Persons
met with regular counsel for the Issuer and special counsel retained by the
Issuer at which time a proposal was made on behalf of the Issuer to adjourn
the 1997 Annual Meeting, subject to the agreement of the Reporting Persons to
the withdrawal of the demand for the shareholder list and related documents.
Pursuant to an agreement, dated July 28, 1997 (the "Agreement"), a copy of
which is attached hereto as an exhibit, the Reporting Persons agreed to
withdraw the demand that the shareholder list and certain other records of
the Issuer be made available to them and further agreed that prior to August
15, 1997, the Reporting Persons would not make any demand on the Issuer for
any list of shareholders or related materials, or for any other documents
previously sought by any of the Reporting Persons. In addition, pursuant to
the Agreement, the Issuer will not hold the 1997 Annual Meeting, or any other
meeting of shareholders at which directors may be elected, prior to October
1, 1997. The Issuer agreed to notify the Reporting Persons on or before
August 20, 1997 of the date on which the 1997 Annual Meeting will be held,
which date shall not be prior to October 1, 1997 nor later than December 19,
1997. The Issuer further agreed to furnish such documents as it may be
required to provide to the Reporting Persons should the Reporting Persons
make a proper request for such
Page 17 of 30
<PAGE>
documents on or after August 15, 1997. During the period prior to the
adjourned date of the 1997 Annual Meeting, the Reporting Persons intend to
continue discussions with the Issuer's management in an effort to reach
agreement on certain actions to increase shareholder value.
Each Reporting Person reserves the right to make purchases
of shares of Common Stock from time to time in the open market or
otherwise and to dispose of any or all of the shares of Common Stock
held by such Reporting Person at any time. Each Reporting Person's
determination with respect to the foregoing possibilities will depend
upon the performance of the Issuer's management and other factors,
including, but not limited to, some or all of the following: market
activity in shares of Common Stock, the Reporting Person's evaluation
of the Issuer and its prospects, the Reporting Person's analysis of
the industry in which the Issuer operates and general market and
economic conditions.
None of the Reporting Persons has any present plans or
proposals which relate to, or could result in, any of the matters
referred to in paragraphs (a) through (j), inclusive, of Item 4 of
Schedule 13D except to the extent described in this Item 4 and Item 6
below, to which reference is hereby made. Each Reporting Person may,
at any time and from time to time, review or reconsider his or her
position and formulate plans or proposals with respect thereto, but
have no present intention of doing so.
Page 18 of 30
<PAGE>
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Item 5 of the May 27 Schedule 13D is amended to include the
following information regarding the additional Reporting Persons:
(a) and (b) The aggregate number and percentage of the
class of securities identified in Item 1 beneficially owned by each
additional person named in Item 2 above are as follows:
4) LOKKEN: See the information contained in items
(11) and (13) of the applicable cover page of this Amendment No. 1
to Schedule 13D for a description of the aggregate number and
percentage of outstanding shares beneficially owned by Lokken. The
number of shares of Common Stock beneficially held by Lokken was
incorrectly reflected in the May 27 Schedule 13D. Lokken is the
beneficial owner of 68,595 shares of Common Stock of the Issuer.
Lokken directly owns such shares of Common Stock.
11) JOHNSTON: See the information contained in items
(11) and (13) of the applicable cover page of this Amendment No. 1 to
Schedule 13D for a description of the aggregate number and percentage
of outstanding shares beneficially owned by Johnston. Johnston is the
beneficial owner of 400,000 shares of Common Stock of the Issuer.
Such 400,000 shares of Common Stock of the Issuer do not include
100,000 shares held by Johnston's adult children, of which shares
Johnston disclaims beneficial ownership.
12) GRAY: See the information contained in items (11)
and (13) of the applicable cover page of this Amendment No. 1 to
Schedule 13D for a description of the aggregate number and percentage
of outstanding shares beneficially owned by Gray. Gray is the
beneficial owner of 85,000 shares of Common Stock of the Issuer. Such
85,000 shares of Common Stock of the Issuer include shares issuable
upon the exercise of (i) an option to purchase 10,000 shares of Common
Stock at an exercise price per share of $1.375, which option expires
on August 25, 1997, (ii) an option to purchase 50,000 shares of Common
Stock at an exercise price per share of $2.50, which option expires on
December 21, 1998, and
Page 19 of 30
<PAGE>
(iii) an option to purchase 10,000 shares of Common Stock at an exercise
price per share of $2.285, which option expires on November 7, 2000.
By virtue of the understanding among them described in Item
4 above and Item 6 below, the Reporting Persons may be deemed to
constitute a "group" under Rule 13d-5. The Reporting Persons, in the
aggregate, beneficially own, directly and indirectly, a total of
3,747,841 shares of Common Stock constituting 15.1% of the outstanding
shares of Common Stock of the Issuer (based upon the Issuer's
statement in its annual report on Form 10-K for the fiscal year ended
December 31, 1996 that the number of outstanding shares of Common
Stock, as of March 27, 1997, was 24,776,816 and assuming, for purposes
of such calculation, the exercise of all currently exercisable options
held by Banakus, Lamotte and Gray).
Each Reporting Person disclaims beneficial ownership of
shares of Common Stock that are, or may deemed to be, beneficially
owned by or on behalf of any other person, to the extent beneficial
ownership by such Reporting Person of such shares of Common Stock may
result from such other person's being deemed to be a member of a
group, for purposes of Rule 13d-5, with such Reporting Person.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
Except to the extent described in Item 4 above and in this
Item 6 (and the Joint Filing Statement attached as Exhibit 1 hereto),
there are no contracts, arrangements, understandings or relationships
(legal or otherwise) among the Reporting Persons and
Page 20 of 30
<PAGE>
between any of such Reporting Persons and any other person with respect to
any securities of the Issuer (including, but not limited to, any contract,
arrangement, understanding or relationship involving the transfer or voting
of any securities, finder's fees, joint ventures, loan or option
arrangements, puts or calls, guarantees of profits, divisions of profits or
loss, or the giving or withholding of proxies).
The Reporting Persons have retained Regan & Associates, Inc.
("Regan") to assist in the solicitation of proxies and for related
services. Pursuant to an agreement with Regan dated July 1, 1997, a
copy of which is attached hereto as an exhibit, the Reporting Persons
have agreed to pay Regan an estimated fee of up to $20,000, which is
subject to reduction under certain circumstances, and have agreed to
pay reasonable out-of-pocket expenses, which cannot exceed $15,000.
In addition, the Reporting Persons have agreed to indemnify Regan to
the fullest extent permitted by applicable law against any loss or
expense (including reasonable legal fees) arising from or in
connection with the performance of Regan's duties under such agreement
to the extent resulting from Regan's negligence or willful misconduct.
In addition, Gold has submitted to the Issuer a proposal for
shareholder approval at the Issuer's next annual meeting of
shareholders, which seeks to impose restrictions on the grant of cash
bonuses and stock options to employees or directors of the Issuer
(subject to pre-existing contractual obligations) and to require that
excess cash of the Issuer be utilized to repurchase
Page 21 of 30
<PAGE>
shares of Common Stock of the Issuer rather than for the payment of dividends
or other distributions to shareholders. In addition, the proposal would
require that any increase in salary or award of stock options be contingent
upon an increase in earnings per share of the Issuer of at least 50% over
that reported for fiscal year 1994. Each of the Reporting Persons intends to
vote all of the shares of Common Stock held by him or her in favor of such
proposal.
The May 27 Schedule 13D Reporting Persons agreed to share
the legal costs and expenses in connection with the preparation and
filing of the May 27 Schedule 13D, pro rata on the basis of the shares
of Common Stock owned directly by each Reporting Person. No final
agreement has been reached as to the portion, if any, of such expenses
to be borne by the additional Reporting Persons regarding the
preparation and filing of this Amendment No. 1 to Schedule 13D or any
subsequent actions taken by the Reporting Persons in furtherance of
the objectives described in Item 4 above and this Item 6.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS.
(a) EXHIBIT 1: Joint statement on Schedule 13D as required
by Rule 13d-1(f)(1)(iii) under the Securities Exchange Act of 1934, as
amended.
(b) EXHIBIT 2: Copy of agreement, dated July 28, 1997,
between the Reporting Persons and the Issuer.
(c) EXHIBIT 3: Copy of agreement, dated July 1, 1997,
between the Reporting Persons and Regan.
Page 22 of 30
<PAGE>
SIGNATURES
After reasonable inquiry and to the best of the
undersigned's knowledge and belief, the undersigned certifies that the
information set forth in this statement is true, complete and correct.
Dated: August 6, 1997
/s/ Richard Banakus
-------------------------------
Richard Banakus
/s/ Hugues Lamotte
-------------------------------
Hugues Lamotte
/s/ Donald Bakalor
-------------------------------
Donald Bakalor
/s/ Oddvin Lokken
-------------------------------
Oddvin Lokken
/s/ Etienne des Roys
-------------------------------
Etienne des Roys
/s/ Jean-Francois Vert
-------------------------------
Jean-Francois Vert
/s/ Ira Alpert
-------------------------------
Ira Alpert
/s/ Per K. Reichborn
-------------------------------
Per K. Reichborn
/s/ David Baker
-------------------------------
David Baker
Page 23 of 30
<PAGE>
/s/ Bernard D. Gold
-------------------------------
Bernard D. Gold
/s/ Charles Johnston
-------------------------------
Charles Johnston
/s/ Karen A. Gray
-------------------------------
Karen A. Gray
Page 24 of 30
<PAGE>
JOINT FILING STATEMENT
PURSUANT TO RULE 13d-1(f)(1)(iii)
The undersigned acknowledge and agree that the foregoing
Statement on Schedule 13D is filed on behalf of each of the
undersigned and that all subsequent amendments to this Statement on
Schedule 13D shall be filed on behalf of each of the undersigned
without the necessity of filing additional joint filing statements.
The undersigned acknowledge that each shall be responsible for the
timely filing of such amendments, and for the completeness and
accuracy of the information concerning him or it contained therein,
but shall not be responsible for the completeness and accuracy of the
information concerning the other, except to the extent that he, she or
it knows or has reason to believe that such information is inaccurate.
Dated: August 6, 1997
/s/ Richard Banakus
-------------------------------
Richard Banakus
/s/ Hugues Lamotte
-------------------------------
Hugues Lamotte
/s/ Donald Bakalor
-------------------------------
Donald Bakalor
/s/ Oddvin Lokken
-------------------------------
Oddvin Lokken
/s/ Etienne des Roys
-------------------------------
Etienne des Roys
Page 25 of 30
<PAGE>
/s/ Jean-Francois Vert
-------------------------------
Jean-Francois Vert
/s/ Ira Alpert
-------------------------------
Ira Alpert
/s/ Per K. Reichborn
-------------------------------
Per K. Reichborn
/s/ David Baker
-------------------------------
David Baker
/s/ Bernard D. Gold
-------------------------------
Bernard D. Gold
/s/ Charles Johnston
-------------------------------
Charles Johnston
/s/ Karen A. Gray
-------------------------------
Karen A. Gray
Page 26 of 30
<PAGE>
EXHIBIT 2
---------
HYDRON TECHNOLOGIES, INC.
Harvey Tauman
President and Chairman
July 28, 1997
Mr. Richard Banakus
Mr. Hugues Lamotte
c/o Jeffrey R. Mann, Esq.
Rubin Baum Levin Constant & Friedman
30 Rockefeller Plaza
New York, New York 10112
Dear Richard and Hugues:
This letter will set forth the agreement between Hydron Technologies,
Inc. (the "Company") and the group of shareholders identified in the Schedule
13D filed on June 3, 1997 with the Securities and Exchange Commission (the
"Group") with respect to the Group ownership of shares of the Company's
common stock.
The Company and the Group agree as follows:
1. Certain members of the Group, namely Richard Banakus, Ira Alpert,
Donald Bakalor and Bernard D. Gold, are hereby withdrawing their demand made
in a letter to the Company dated July 14, 1997 (the "Request Letter") that
certain of the Company's records be made available to them pursuant to
Section 624 of the New York Business Corporation Law and pursuant to New York
common law. The Company will promptly refund the sum of $1,700 which was
sent to it under cover of a letter dated July 21, 1997 from your counsel,
Jeffrey R. Mann, Esq. of Rubin Baum Levin Constant & Friedman.
2. Prior to August 15, 1997, neither the Group nor any of its members,
directly or indirectly, will make any demand on the Company for any list of
shareholders and related materials, or for any other books or records
previously sought pursuant to the Request Letter, pursuant to state or
federal law, or otherwise. If, on or after August 15, 1997, the Group or any
of its members makes a proper demand for such documents, then the Company
will furnish such documents as it is required to provide.
3. The Company will not hold its 1997 Annual Meeting of shareholders,
or any other meeting of shareholders at which directors may be elected, prior
to October 1, 1997.
4. On or before August 20, 1997, the Company will notify your counsel,
Mr. Mann, of the date on which the Company's 1997 Annual Meeting of
Shareholders will be held, which date shall not be prior to October 1, 1997
nor later than December 19, 1997.
Page 27 of 30
<PAGE>
By your signatures below, please confirm that you and other members of
the Group agree with the foregoing.
Very truly yours,
HYDRON TECHNOLOGIES, INC.
By: /s/ Harvey Tauman
-------------------------------
Harvey Tauman,
President and Chairman
Agreed to on Behalf of
Themselves and the Other
Members of the Group:
/s/ Richard Banakus
- ------------------------------
Richard Banakus
/s/ Hugues Lamotte
- ------------------------------
Hugues Lamotte
Page 28 of 30
<PAGE>
EXHIBIT 3
---------
REGAN & ASSOCIATES, INC.
15 Park Row
New York, New York 10038
July 1, 1997
`The Hydron Technologies Inc.
Shareholders Committee'
(a.k.a. The "13D Group")
c/o Richard Banakus
82 Verissimo Drive
Novato, California 94947
Dear Client:
This letter will constitute the "Fight" contract under which `The
Hydron Technologies Inc. Shareholders Committee' (a.k.a. The "13D
Group") will engage Regan & Associates, Inc. to act as its proxy
solicitor in the event that it commences an Opposition Solicitation of
Hydron Technologies, Inc.'s shareholders for the Annual Meeting
tentatively scheduled to be held on August 20, 1997.
For a "Fight" Solicitation & Delivery Fee of $20,000.00, we will
perform the following:
* ANY AND ALL SHAREHOLDER RELATED CONSULTING NECESSARY TO
SAFELY SECURE THE REQUIRED VOTE(S) including assistance in
preparing proxy/solicitation materials, follow-up mailings,
communicator guides, ETC...
* THE FULFILLMENT OF YOUR BROKER/BANK NOTIFICATION
REQUIREMENTS via a posted "Search Letter" and the subsequent
creation of your Street Distribution Schedule.
* THE actual DELIVERY OF YOUR PROXY MATERIALS (including ALL
`follow-up' mailings) by hand, post or air freight TO EVERY
BROKER AND BANK THAT HOLDS HTEC SHARES worldwide.
* THE IDENTIFICATION OF ALL BENEFICIAL OWNERS BEHIND STREET
NAME DEPOSITORY POSITIONS (INCLUDING OBOS) ON AN AS NEEDED
BASIS.
* THE actual SOLICITATION, COLLECTION AND TABULATION OF ALL
BROKER/BANK PROXIES as well as proxies from registered
stockholders on an as needed basis.
* THE AUDITING AND PAYING OF ALL BROKER/BANK INVOICES for a
$4.00 per check charge plus the stamp to mail it. (PLEASE
NOTE: THIS IS AN OPTIONAL SERVICE AND NOT A RETAINER
REQUIREMENT BY ANY MEANS).
IT IS UNDERSTOOD THAT OUR "FIGHT" SOLICITATION AND DELIVERY FEE
WILL BE REDUCED BY 50% TO $10,000.00 IF THE "13D GROUP" FAILS TO
Page 29 of 30
<PAGE>
ELECT ALL OF THE COMMITTEE'S OPPOSITION NOMINEES TO HTEC's BOARD AT THE
ANNUAL MEETING AND THAT OUR EXPENSES, EXCLUDING ANY `RECORD' MAILINGS' FEES
AND EXPENSES, WILL NOT EXCEED $15,000.00.
IF THE CURRENT MANAGEMENT OF HTEC AGREES TO STEP ASIDE PRIOR TO
ANY OPPOSITION PROXY SOLICITATION COMMENCING, THE "13D GROUP" WILL
THEN ONLY BE RESPONSIBLE FOR A $7,500.00 "CONSULTING" FEE (INSTEAD OF
THE $20,000.00 "FIGHT" FEE DISCLOSED ABOVE) PLUS ALL REASONABLE
OUT-OF-POCKET EXPENSES ALREADY INCURRED.
PLEASE CHOOSE ONE OF THE FOLLOWING OPTIONS:
( ) We will provide a broker/banker billing service through
which we will act as your paying agent after reviewing all
invoices submitted in terms of quantity, rate accuracy and
legitimacy. This service is available for a $4.00 per check
charge plus expended postage.
( ) We will NOT act as your paying agent for broker/bank
invoices. We will instruct the brokers and banks via the
search process to whom their invoices should be submitted
and forward any that come into our possession to that same
party.
Regan & Associates will also be available to fulfill each proxy
mailing to all shareholders `of record' (i.e. registered shareholders)
for a separate per Mailing Fee of $1,500.00 plus expended postage.
A single, initial invoice for $5,000.00 is payable upon the
signing of this agreement. This amount represents a first advance
against our appropriate fees and expenses. Our "Fight" Solicitation
and Delivery Fee together with an adjustment for our out-of-pocket
expenses and advances, will be included on our Final Invoice after
your Opposition Solicitation has concluded.
You also agree to indemnify us to the fullest extent permitted by
appropriate law against any loss or expense (including reasonable
legal fees) arising from or in connection with the performance of our
duties described herein with the exception of that which is a result
of our negligence or willful misconduct.
If this contract is acceptable to you, please sign and return one
of the copies to us.
Yours very truly,
`THE HYDRON TECHNOLOGIES INC.
SHAREHOLDERS COMMITTEE'
(A.K.A. THE "13D GROUP") Regan & Associates, Inc.
Name: /s/ Richard Banakus Name: /s/ Artie Regan
--------------------------- -------------------------------
Title: Title: President
--------------------------- -------------------------------
Page 30 of 30
