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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 1)
Under the Securities Exchange Act of 1934
Coventry Corporation
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(Name of Issuer)
Common Stock, par value $0.01
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(Title of Class of Securities)
222853103
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(CUSIP Number of Class of Securities)
Patrick T. Hackett
E.M. Warburg Pincus & Co., LLC
466 Lexington Avenue
New York, New York 10017
(212) 878-0600
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
Copies to:
Steven J. Gartner
Willkie Farr & Gallagher
153 East 53rd Street
New York, NY 10022
(212) 821-8000
June 30, 1997
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(Date of Event which Requires
Filing of this Schedule)
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: |_|
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SCHEDULE 13D
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CUSIP No. 222853103 Page 2 of 13 Pages
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- ---- ---------------------------------------------------------------------------
1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Warburg, Pincus Ventures, L.P. I.D. #13-3784037
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
- ---- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,717,647
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,717,647
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
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14 TYPE OF REPORTING PERSON*
PN
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*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.
2
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SCHEDULE 13D
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CUSIP No. 222853103 Page 3 of 13 Pages
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- ---- ---------------------------------------------------------------------------
1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Warburg, Pincus Ventures, L.P. I.D. #13-6358475
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ---- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,717,647
- ---- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,717,647
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- ---- ---------------------------------------------------------------------------
*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.
3
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SCHEDULE 13D
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CUSIP No. 222853103 Page 4 of 13 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
E.M. Warburg, Pincus & Co., LLC I.D. #13-3536050
- ---- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- ---- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ---- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 0
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
5,717,647
- ---- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,717,647
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
- ---- ---------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- ---- ---------------------------------------------------------------------------
*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.
4
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SCHEDULE 13D
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CUSIP No. 222853103 Page 5 of 13 Pages
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1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Patrick T. Hackett
- ---- ---------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- ---- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ---- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
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7 SOLE VOTING POWER
5,000
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,717,647
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 5,000
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,722,647
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
- ---- ---------------------------------------------------------------------------
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.
5
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SCHEDULE 13D
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CUSIP No. 222853103 Page 6 of 13 Pages
- ----------------------------- ----------------------------------------
- ---- ---------------------------------------------------------------------------
1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Joel Ackerman
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- ---- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- ---- ---------------------------------------------------------------------------
7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,717,647
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ---- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,717,647
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
- ---- ---------------------------------------------------------------------------
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.
6
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SCHEDULE 13D
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CUSIP No. 222853103 Page 7 of 13 Pages
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- ---- ---------------------------------------------------------------------------
1 NAME OF REPORT PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Jonathan S. Leff
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) |_|
(b) |X|
- ---- ---------------------------------------------------------------------------
3 SEC USE ONLY
- ---- ---------------------------------------------------------------------------
4 SOURCE OF FUNDS*
N/A
- ---- ---------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e) |_|
- ---- ---------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States of America
- ---- ---------------------------------------------------------------------------
7 SOLE VOTING POWER
0
--------- -------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 5,717,647
OWNED BY --------- -------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH 0
--------- -------------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- ---- ---------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
5,717,647
- ---- ---------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* |_|
- ---- ---------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
14.8%
- ---- ---------------------------------------------------------------------------
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.
7
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This Amendment No. 1 amends the Schedule 13D filed on May 19, 1997 (the
"Schedule 13D") on behalf of Warburg, Pincus Ventures, L.P., a Delaware limited
partnership ("Ventures"), Warburg, Pincus & Co., a New York general partnership
("WP"), E.M. Warburg, Pincus & Co., LLC, a New York limited liability company
("EMW"), and Patrick T. Hackett, Joel Ackerman and Jonathan S. Leff (the
"Trustees"), as trustees under a Voting Trust Agreement, dated April 15, 1997
(the "Voting Trust"), relating to the common stock, par value $0.01 per share
(the "Common Stock"), of Coventry Corporation, a Tennessee corporation (the
"Company").
Unless otherwise indicated herein, each capitalized term used but not
defined herein shall have the meaning assigned to such term in the Schedule 13D.
Item 3
------
Item 3 of the Schedule 13D is hereby amended by adding the following:
"The total amount of funds required by Ventures to purchase the
Purchased Securities and the Second Closing Securities pursuant to the Purchase
Agreement described in Item 4, was $38,117,647, and was furnished from the
working capital of Ventures."
Item 4
------
The second paragraph of Item 4 of the Schedule 13D is hereby amended
and restated in its entirety as follows:
"At the first closing under the Purchase Agreement on May 9, 1997 (the
"First Closing"), Ventures purchased an 8.3% Convertible Exchangeable Senior
Subordinated Note of Coventry in the aggregate principal amount of $22,844,980
due May 9, 2004 (the "Purchased
8 of 13 Pages
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Note") and 235,294 Warrants to purchase Common
Stock (the "Purchased Warrants" and together with the Purchased Note, the
"Purchased Securities"). The Purchased Securities represent beneficial ownership
of 3,628,320 shares of Common Stock, or approximately 9.9% of the outstanding
voting securities of the Company. On June 30, 1997, the second closing occurred
under the Purchase Agreement (the "Second Closing"). Ventures purchased an
additional Note in the aggregate principal amount of $13,155,020 (the "Second
Note") and an additional 773,825 Warrants (together with the Second Note, the
"Second Closing Securities"). The Second Closing Securities represent beneficial
ownership of 2,089,327 shares of Common Stock, or approximately 5.39% of the
outstanding voting securities of the Company. The Purchased Securities and the
Second Closing Securities together represent beneficial ownership of 5,717,647
shares of Common Stock, or approximately 14.8% of the outstanding voting
securities of the Company."
The first sentence of the forth paragraph of Item 4 is hereby amended
and restated in its entirety as follows:
"For two years following the Second Closing (the "Second Anniversary"),
the holders of Series A Preferred Stock will be entitled to receive, if , when
and as declared out of the net profits of the Company, dividends at the rate of
$0.83 per share per annum, payable in additional shares of Series A Preferred
Stock, valued at $10.00 per share, before any dividends are set apart for or
paid upon the Common Stock or any other stock ranking on liquidation junior to
the Series A Preferred Stock in any year."
9 of 13 Pages
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The second sentence of the eighth paragraph of Item 4 is hereby amended
and restated in its entirety as follows:
"For so long as Warburg and Franklin own beneficially (within the
meaning of Rule 13d-3 under the Exchange Act) at least 50% of the shares of
Common Stock beneficially owned by them at the Second Closing, the Company will
nominate and use its best efforts to elect and cause to remain as directors on
the Board at least one (1) nominee designated by the Majority Holders."
The sixteenth paragraph of Item 4 of the Schedule 13D is hereby amended
and restated in its entirety as follows:
"None of the Reporting Entities nor, to the best of their knowledge,
any person listed in Schedule I hereto, has any plans or proposals which relate
to or would result in: (a) the acquisition by any person of additional
securities of the Company, or the disposition of securities of the Company; (b)
an extraordinary corporate transaction, such as a merger, reorganization
or liquidation, involving the Company or any of its subsidiaries; (c) a sale or
transfer of a material amount of assets of the Company or any of its
subsidiaries; (d) any change in the present Board of Directors or management of
the Company, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board; (e) any material
change in the present capitalization or dividend policy of the Company; (f) any
other material change in the Company's business or corporate structure; (g)
changes in the Company's charter, By-Laws or instruments corresponding thereto
or other actions which may impede the acquisition of control of the Company by
any person; (h)
10 of 13 Pages
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causing a class of securities of the Company to be delisted from
a national securities exchange or to cease to be authorized to be quoted in an
inter-dealer quotation system of a registered national securities association;
(i) a class of equity securities of the Company becoming eligible for
termination of registration pursuant to Section 12(g)(4) of the Exchange Act; or
(j) any action similar to any of those enumerated above."
Item 5
------
The first paragraph of Item 5 of the Schedule 13D is hereby amended and
restated in its entirety as follows:
"(a) As of June 30, 1997, Ventures beneficially owned 5,717,647 shares
of Common Stock, subject to adjustment. By reason of their respective
relationships with Ventures, each of the Reporting Entities may be deemed under
Rule 13d-3 under the Exchange Act to own beneficially all of the shares of
Common Stock which Ventures beneficially owns. As of June 10, 1997, 5,717,647
shares of Common Stock represented approximately 14.8% of the outstanding shares
of Common Stock, based on the number of shares of Common Stock outstanding as of
such date as reported in the Company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1997."
Schedule I
----------
Schedule I to the Schedule 13D is hereby amended such that the
following is deleted from both the list of General Partners of WP and the list
of Members of EMW set forth on Schedule I:
"Joanne R. Wenig Managing Director and Member, EMW"
11 of 13 Pages
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SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief,
the undersigned certify that the information set forth in this statement is
true, complete and correct.
Dated: July 3, 1997 WARBURG, PINCUS VENTURES, L.P.
By: Warburg, Pincus & Co.,
General Partner
By:/s/ Stephen Distler
-------------------
Partner
Dated: July 3, 1997 WARBURG, PINCUS & CO.
By:/s/ Stephen Distler
-------------------
Partner
Dated: July 3, 1997 E.M. WARBURG, PINCUS & CO., LLC
By:/s/ Stephen Distler
-------------------
Member
12 of 13 Pages
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Dated: July 3, 1997 By:/s/ Patrick T. Hackett
----------------------
Trustee
Dated: July 3, 1997 By:/s/ Joel Ackerman
-----------------
Trustee
Dated: July 3, 1997 By:/s/ Jonathan S. Leff
--------------------
Trustee
13 of 13 Pages
