UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a) AND
AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
Amendment No.1
ASAHI/AMERICA, Inc.
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(Name of Issuer)
Common Stock, no par value
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(Title of Class of Securities)
04338D106
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(CUSIP Number)
Ichiro Murao
Midnight Acquisition Holdings, Inc.
c/o Asahi Organic Chemicals Industry Co., Ltd.
15-9 Uchikanda 2-chome,
Chiyoda-ku, Tokyo 101-0047 Japan
03-3256-2451
with a copy to:
David M. Wilf, Esq.
Chadbourne & Parke LLP
30 Rockefeller Plaza
New York, NY 10112
212-408-5100
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(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications)
August 9, 1999
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(Date of Event which Requires Filing of this Statement)
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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(e), 13d-1(f) or 13d-1(g), check the
following box |X|
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-7(b) 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/A
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CUSIP No. 04338D106 Page 2 of 11 Pages
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1
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Asahi Organic Chemicals Industry Co., Ltd. ("AOC")
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3
SEC USE ONLY
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4
SOURCE OF FUNDS*
WC
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5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) |_|
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6
CITIZENSHIP OR PLACE OF ORGANIZATION
Japan
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- ------------------- ------- ----------------------------------------------------
7
NUMBER OF SOLE VOTING POWER
SHARES 491,470
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8
BENEFICIALLY SHARED VOTING POWER
OWNED BY 931,030
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------- ----------------------------------------------------
EACH 9
SOLE DISPOSITIVE POWER
REPORTING
491,470
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------- ----------------------------------------------------
PERSON 10
SHARED DISPOSITIVE POWER
WITH
-0-
- ------------------- ------- ----------------------------------------------------
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11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,422,500
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12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* |_|
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13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
41.5%
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14
TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D/A
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CUSIP No. 04338D106 Page 3 of 11 Pages
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1
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Midnight Acquisition Holdings, Inc. ("Holdings")
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3
SEC USE ONLY
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4
SOURCE OF FUNDS*
OO
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5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS 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
NUMBER OF SOLE VOTING POWER
SHARES -0-
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8
BENEFICIALLY SHARED VOTING POWER
OWNED BY 1,422,500
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EACH 9
SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
------- ----------------------------------------------------
PERSON 10
SHARED DISPOSITIVE POWER
WITH
-0-
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11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,422,500
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12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* |_|
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13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
41.5%
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14
TYPE OF REPORTING PERSON*
CO, HC
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
SCHEDULE 13D/A
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CUSIP No. 04338D106 Page 4 of 11 Pages
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1
NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Midnight Acquisition Corp. ("Acquisition Corp.")
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) |X|
(b) |_|
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3
SEC USE ONLY
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4
SOURCE OF FUNDS*
OO
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5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) |_|
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6
CITIZENSHIP OR PLACE OF ORGANIZATION
Massachusetts
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7
NUMBER OF SOLE VOTING POWER
SHARES -0-
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8
BENEFICIALLY SHARED VOTING POWER
OWNED BY 1,422,500
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------- ----------------------------------------------------
EACH 9
SOLE DISPOSITIVE POWER
REPORTING
-0-
------- ----------------------------------------------------
------- ----------------------------------------------------
PERSON 10
SHARED DISPOSITIVE POWER
WITH
-0-
- ------------------- ------- ----------------------------------------------------
- --------- ----------------------------------------------------------------------
11
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,422,500
- --------- ----------------------------------------------------------------------
- --------- ----------------------------------------------------------------------
12
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES* |_|
- --------- ----------------------------------------------------------------------
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13
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
41.5%
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- --------- ----------------------------------------------------------------------
14
TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 5 of 11 Pages
This Amendment No. 1 amends the statement in Schedule 13D
which was filed on July 27, 1999 (the "Schedule 13D") by the undersigned with
respect to Common Stock, no par value (each a "Share," and collectively, the
"Shares") of Asahi/America, Inc. (the "Issuer"). Capitalized terms used herein
and not otherwise defined in this Amendment have the meanings set forth in the
Schedule 13D.
Except as specifically provided herein, this Amendment does
not modify any of the information previously reported on Schedule 13D.
This Amendment amends the tables of each of the Stockholders
and Items 3, 4, 5, 6 and 7, all of which are restated in their entirety.
Item 3. Source and Amount of Funds or Other Consideration.
-------------------------------------------------
AOC will use its working capital to fund the transaction that
gives rise to this filing.
Item 4. Purpose of Transaction.
----------------------
(a) Not applicable.
(b) Pursuant to an Agreement and Plan of Merger dated as of
August 9, 1999 (the "Merger Agreement"), by and among Holdings, Acquisition
Corp., and the Issuer, and subject to the Merger Agreement's conditions,
Acquisition Corp. will be merged with and into the Issuer (the "Merger"), with
each of the outstanding Shares being converted into the right to receive (i)
$8.25, in cash, without interest, plus (ii) an amount equal to the aggregate
amount received by the Issuer for the sale of its wholly owned subsidiary, Quail
Piping Products, Inc. ("Quail"), net of all taxes and expenses paid or payable
from its sale, divided by (1) the number of Shares issued and outstanding, other
than Shares held by AOC, the Issuer or any of their respective subsidiaries,
plus (2) all Shares into which options
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 6 of 11 Pages
and similar rights are exercisable at the moment when the Merger becomes
effective (the "Merger Consideration"). The Merger is subject to (i) the
approval of the Merger Agreement and the Merger by the Issuer's shareholders
and (ii) the satisfaction or waiver of certain other conditions as more fully
described in the Merger Agreement.
In addition to conditions precedent customarily found in
transactions of this type, the Merger Agreement requires that (i) the Issuer
have no debt as of the closing, with certain exceptions, (ii) Quail be sold and
all Quail-related obligations of the Issuer be terminated pursuant to an
agreement in the form attached to the Merger Agreement and (iii) all Shares held
directly and indirectly by Nichimen Corporation ("Nichimen") have been purchased
by AOC or its subsidiaries.
Pursuant to the terms of the Merger Agreement, the Issuer will
survive the Merger and become a wholly owned subsidiary of Holdings. At the
moment the Merger becomes effective (the "Effective Time"), each Share of the
Issuer then outstanding will be converted into the right to receive the Merger
Consideration, and all outstanding options or rights to acquire the Shares of
the Issuer will be canceled and will receive the difference between the Merger
Consideration and the exercise price of such option or right, other than Shares
of AOC and its subsidiaries (which will include the Shares of Nichimen purchased
immediately prior to the Merger) which will be cancelled in the Merger and will
not receive the Merger Consideration.
The foregoing description of the Merger Agreement and the
Merger is qualified in its entirety by reference to the Merger Agreement, a copy
of which has been included as an exhibit to the Issuer's Current Report on Form
8-K (the "Form 8-K") filed with the Securities and Exchange Commission on August
10, 1999 and incorporated herein by reference in its entirety.
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 7 of 11 Pages
As an inducement to Holdings to enter into the Merger
Agreement, Leslie B. Lewis, who beneficially owns 27.2% of the shares of the
Issuer, has entered into a Stockholder Agreement, dated as of August 9, 1999
(the "Stockholder Agreement"), pursuant to which Mr. Lewis has granted a proxy
to vote such shares in favor of the Merger. The Stockholder Agreement terminates
upon the earlier to occur of (i) the closing date of the Merger, (ii) March, 31
2000 or (iii) the date the Merger Agreement is terminated if it is terminated by
mutual consent of the parties or resulting from a governmental or court order or
decree.
The foregoing description of the Stockholder Agreement is
qualified in its entirety by reference to such agreement, a copy of which has
been filed herewith as Exhibit (a) and is incorporated herein by reference in
its entirety.
(c) Pursuant to the Merger Agreement and as a condition to the
Merger, the Issuer will sell its wholly owned subsidiary, Quail.
(d) After the Merger, the directors of Acquisition Corp.
immediately prior to the Effective Time shall be the directors of the surviving
corporation, until the earlier of their resignation or removal or until their
respective successors are duly elected and qualified as the case may be, and the
Issuer shall procure, prior to and as a condition to the Closing, the
resignation of each of its directors effective as of the Closing other than Mr.
Lewis who will remain as a director of the surviving corporation. The officers
of the Issuer immediately prior to the Effective Time will remain in office as
officers of the surviving corporation, until the earlier of their resignation or
removal or until their respective successors are duly elected and qualified.
(e) See Items 4(f) and 4(h).
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 8 of 11 Pages
(f) Pursuant to the Merger Agreement and as a condition to the
Merger, the Issuer will sell its wholly owned subsidiary, Quail. Following the
Merger, the Issuer will become a wholly owned subsidiary of Holdings.
(g) Following the Merger, the articles of organization and
bylaws of Acquisition Corp. will remain as the articles of organization and
bylaws of the surviving corporation of the Merger.
(h) As a result of the Merger, the Shares of the Issuer will
be delisted from the Nasdaq National Market System.
(i) As a result of the Merger, the Shares of the Issuer will
become eligible for termination of registration under Rule 12g-4 of the
Securities Exchange Act of 1934, as amended, and will be deregistered as such.
(j) Not applicable.
Item 5. Interest in Securities of the Issuer.
------------------------------------
(a) - (b) Please refer to Schedule I attached hereto.
(c) None of the Stockholders have effected any
transactions in the Shares of the Issuer during the past 60 days.
(d) None.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or
Relationships with Respect to Securities of the Issuer.
------------------------------------------------------
Holdings is a wholly owned subsidiary of AOC. Acquisition
Corp. is a wholly owned subsidiary of Holdings. Except as described herein,
the Issuer has not entered into any contracts, arrangements,
understandings or relationships (legal or
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 9 of 11 Pages
otherwise) with any other person with respect to any securities of the Issuer.
See Item 4.
Item 7. Material to be filed as Exhibits.
--------------------------------
(a) Stockholder Agreement dated as of August 9, 1999,
among Holdings and Leslie B. Lewis as trustee and
individually.
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 10 of 11 Pages
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and
belief, the undersigned hereby certifies that the information set forth in this
Statement is true, complete and correct.
Dated: August 9, 1999
STOCKHOLDERS:
Asahi Organic Chemicals Industry Co., Ltd.
By:/s/ Haruo Tabata
----------------------------------------
Haruo Tabata, President
Midnight Acquisition Holdings, Inc.
By:/s/ Ichiro Murao
----------------------------------------
Ichiro Murao, Director & President
Midnight Acquisition Corp.
By:/s/ Ichiro Murao
----------------------------------------
Ichiro Murao, Director & President
<PAGE>
CUSIP NO. 04338D106 SCHEDULE 13D/A Page 11 of 11 Pages
SCHEDULE I
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------- ------------- -------------- ------------- ------------- ------------- --------------
Stockholder Name, Principal Number of Percentage Shares as Shares as Shares as Shares as to
Business, Address of, shares of shares to which to which to which which there
Principal Business, and beneficially beneficially there is there is there is is shared
Address of Principal Office owned owned sole power shared sole power power to
to vote power to to dispose dispose
vote
- ----------------------------- ------------- -------------- ------------- ------------- ------------- --------------
Asahi Organic Chemicals 1,422,500 41.5% 491,470 931,030 491,470 -0-
Industry Co., Ltd.
Manufacturer and distributor
of plastic piping materials
including valves, pipes,
sockets, tees and joints.
15-9 Uchikanda 2-chome
Chiyoda-ku Tokyo 101-0047
Japan
Midnight Acquisition 1,422,500 41.5% -0- 1,422,500 -0- -0-
Holdings, Inc.
Acquisition Vehicle
c/o Asahi Organic Chemicals
Industry Co., Ltd.
15-9 Uchikanda 2-chome
Chiyoda-ku Tokyo 101-0047
Japan
Midnight Acquisition Corp. 1,422,500 41.5% -0- 1,422,500 -0- -0-
Acquisition Vehicle
c/o Asahi Organic Chemicals
Industry Co., Ltd.
15-9 Uchikanda 2-chome
Chiyoda-ku Tokyo 101-0047
Japan
Voting Power Shared with: 931,030 27.2% 931,030 -0- 723,773 -0-
Leslie B. Lewis
c/o Asahi/America, Inc.
35 Green Street
Malden, Massachusetts
02148
Principal Executive
Officer, President and
Director of Issuer
United States Citizen
- ----------------------------- ------------- -------------- ------------- ------------- ------------- --------------
</TABLE>
Exhibit (a)
THIS STOCKHOLDER AGREEMENT (this "Agreement"), dated as of
August 9, 1999, is among Midnight Acquisition Holdings, Inc., a Delaware
corporation ("Parent"), and Leslie B. Lewis, as trustee (the "Trustee") of the
voting trust (the "Voting Trust") created under that certain Voting Trust
Agreement dated as of January 11, 1993 (the "Voting Trust Agreement") and
individually (the "Stockholder").
RECITALS
WHEREAS, Parent, through a subsidiary ("Sub"), intends to
enter into a business combination (the "Merger") with Asahi/America, Inc. (the
"Company") pursuant to an Agreement and Plan of Merger (the "Merger Agreement")
dated as of August 9, 1999; and
WHEREAS, the Stockholder and the Trustee have agreed to vote
all shares of Common Stock of the Company beneficially owned by them in favor of
the Merger and Parent, the Trustee and the Stockholder desire to memorialize
certain other agreements, all as set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the
mutual covenants and agreements herein contained and for other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:
AGREEMENT
1. Certain Definitions. For purposes of this Agreement:
"Acquisition Proposal" shall mean any inquiry, proposal or
offer from any Person relating to any direct or indirect acquisition or purchase
of 15% or more of any class of equity securities of the Company or any of its
subsidiaries, any tender offer or exchange offer that if consummated would
result in any Person beneficially owning 15% or more of any class of equity
securities of the Company or any of its subsidiaries, any merger, consolidation,
business combination, sale of substantially all the assets, recapitalization,
liquidation, dissolution or similar transaction involving the Company or any of
its subsidiaries, other than the transactions contemplated by the Merger
Agreement, or any other transaction the consummation of which could reasonably
be expected to impede, interfere with, prevent or materially delay the Merger or
which would reasonably be expected to dilute materially the benefits to Parent
of the transactions contemplated hereby.
"Beneficially Own" or "Beneficial Ownership" with respect to
any securities shall mean having "beneficial ownership" of such securities (as
determined pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as
amended (the "Exchange Act")),
<PAGE>
including pursuant to any agreement, arrangement or understanding, whether or
not in writing. Without duplicative counting of the same securities by the same
holder, securities Beneficially Owned by a Person shall include securities
Beneficially Owned by all other Persons with whom such Person would constitute a
"group" within the meaning of Section 13(d) of the Exchange Act.
"Closing Date" shall mean the date set forth in the Merger
Agreement as the closing date for the Merger.
"Common Stock" shall mean at any time the Common Stock, no par
value, of the Company.
"Existing Shares" shall mean the shares of Common Stock
Beneficially Owned by the Stockholder or the Trustee on the date hereof.
"Permitted Transfer" means a sale, transfer, assignment or
other disposition to a Permitted Transferee.
"Permitted Transferee" means any person who is (A) the spouse
or former spouse of, or any lineal descendent of, or any spouse of such lineal
descendant of, or the grandparent, parent, brother or sister of, or spouse of
such brother or sister of, either of the Stockholder or of a Permitted
Transferee; (B) upon the death of the Stockholder or any Permitted Transferee of
the Stockholder, the executors of the estate of the Stockholder or such
Permitted Transferee, and any of the Stockholder's or such Permitted
Transferee's heirs, testamentary trustees, devisees, or legatees; (C) any trust
for the benefit of the Stockholder or one or more Permitted Transferees; (D)
upon the disability of either of the Stockholder or any Permitted Transferee,
any guardian or conservator of the Stockholder or such Permitted Transferee;
provided, however, that in each case such transferee assumes and agrees to
perform and becomes a party to this Agreement, agrees not to make an Acquisition
Proposal, and agrees not to dissent in the Merger, all on terms reasonably
acceptable to Parent. For purposes of this Agreement, when a Permitted
Transferee has acquired Shares in accordance herewith, such person shall be
deemed a "Stockholder" hereunder.
"Person" shall mean an individual, corporation, limited
liability company, partnership, joint venture, association, trust,
unincorporated organization or other entity.
"Shares" shall mean the Existing Shares and any right to
acquire shares of Common Stock owned on the date hereof and any shares of Common
Stock or rights to acquire shares of Common Stock acquired by the Stockholder or
the Trustee in any capacity after the date hereof and prior to the termination
of this Agreement. "Shares" shall include (i) shares of Common Stock acquired
upon the exercise of options, warrants or other rights to acquire shares; (ii)
shares of Common Stock acquired upon the conversion or exchange of
<PAGE>
convertible or exchangeable securities; (iii) shares of Common Stock acquired by
means of purchase, dividend, distribution, gift, bequest, inheritance or as a
successor in interest in any capacity or otherwise; and (iv) rights to acquire
shares of Common Stock, vested or not, presently exercisable or not, including,
but not limited to, options and warrants. In the event of a stock dividend or
distribution, or any change in the Common Stock by reason of any stock dividend,
split-up, recapitalization, reclassification, combination, exchange of shares or
the like, the term "Shares" shall be deemed to refer to and include the Shares
as well as all such stock dividends and distributions and any shares into which
or for which any or all of the Shares may be changed, reclassified or exchanged
and appropriate adjustments shall be made to the terms and provisions of this
Agreement. "Shares" shall also include voting trust certificates issued in
respect of any Shares.
2. Voting Agreement.
(a) The Stockholder and the Trustee, subject to the
terms of this Agreement, hereby irrevocably grant to, and appoint,
Parent and any other Person designated by Parent from time to time, the
Stockholder's and the Trustee's proxy and attorney-in-fact (with full
power of substitution), for and in the name, place and stead of the
Stockholder, to vote the Stockholder's and the Trustee's Shares, or
grant a consent or approval in respect of such Shares, at any meeting
of stockholders of the Company or at any adjournment thereof or in any
other circumstances upon which their vote, consent or other approval is
sought, (i) in favor of (A) the Merger, (B) the Merger Agreement and
(C) the transactions contemplated by the Merger Agreement, including,
but not limited to, the sale of any subsidiary of the Company in
accordance therewith and the amendments to the Articles of Organization
of the Company contemplated thereby and (ii) against (A) any
extraordinary corporate transaction, such as a merger, consolidation or
other business combination involving the Company or any of its
subsidiaries (except as contemplated by the Merger Agreement); (B) any
sale, lease or transfer by the Company of a material amount of assets
(including stock) of the Company or any of its subsidiaries, or a
reorganization, restructuring, recapitalization, special dividend,
dissolution or liquidation of the Company or any of its subsidiaries
(except as contemplated by the Merger Agreement); and (C)(1) any change
in a majority of the persons who constitute the board of directors of
the Company or any of its subsidiaries; (2) any change in the present
capitalization of the Company or any of its subsidiaries including any
proposal to issue an equity interest (or rights thereto) in the Company
or any of its subsidiaries (except as contemplated by the Merger
Agreement); (3) any amendment of the Company or any of its
subsidiaries' charters or by-laws; (4) any other change in the Company
or any of its subsidiaries' corporate structure or business (except as
contemplated in the Merger Agreement); and (5) any other action which,
in the case of each of the matters referred to in clauses (C)(1), (2),
(3) or (4), is intended, or could reasonably be expected, to impede,
interfere with, delay, postpone, or
<PAGE>
adversely affect the Merger and the transactions contemplated by this
Agreement and the Merger Agreement.
(b) The Stockholder and the Trustee represent that
any proxies previously given in respect of the Stockholder's or the
Trustee's Shares are not irrevocable, and that any such proxies are
hereby revoked.
(c) The Stockholder and the Trustee hereby affirm
that the irrevocable proxy set forth in this Section 2 is given to
secure the performance of the duties of the Stockholder and the Trustee
under this Agreement. The Stockholder and the Trustee hereby further
affirm that such irrevocable proxy is coupled with an interest and may
under no circumstances be revoked, except in connection with the
termination of this Agreement pursuant to Section 7 hereof. The
Stockholder and the Trustee hereby ratify and confirm all that such
irrevocable proxy may lawfully do or cause to be done by virtue hereof.
Such irrevocable proxy is executed and intended to be irrevocable in
accordance with the provisions of Section 41 of Chapter 156B of the
Massachusetts General Laws.
(d) The Stockholder and the Trustee agree that
neither of them shall enter into any agreement or understanding with
any Person the effect of which would be inconsistent with or violative
of the provisions and agreements contained herein, including in this
Section 2. Further, the Stockholder and the Trustee agree that they
will, if the Board of Directors of the Company fails or refuses to
submit the Merger to the Company stockholders or if the Board of
Directors withdraws its approval of the Merger, vote all Shares held of
record or Beneficially Owned by them to (i) call or cause to be called
a special meeting of stockholders of the Company (or effect a written
consent) to remove the directors of the Company who have so failed or
refused or voted in favor of such withdrawal, or to increase the size
of the Board of Directors and elect a majority of new directors who
will submit the Merger to the stockholders of the Company for a vote or
reinstate such approval, and (ii) use their reasonable efforts to vote
such Shares to effect such removal and replacement, or increase and
election, and the submission of the Merger to the stockholders of the
Company; and (iii), at any time if so requested by Parent, vote such
Shares to approve all or any actions incident to the Merger or the
other matters referred to in this Section 2 by stockholder written
consent.
3. Other Covenants of the Stockholder and the Trustee.
(a) Restriction on Transfer; Proxies and Non-interference.
From the date hereof through the Closing Date or the earlier
termination of this Agreement in accordance with its terms, and
except for (i) Permitted Transfers as expressly permitted herein and
(ii) enforcement of the pledge pursuant to the Consumer Pledge and
Security Agreement dated April 16, 1998, as amended to date, in favor
of Boston Private Bank & Trust Company, the Stockholder and the
Trustee agree that they shall not directly or indirectly:
<PAGE>
(i) offer for sale, sell, transfer, tender,
pledge, encumber, assign or otherwise dispose of, or enter
into any contract, option or other arrangement or
understanding with respect to, or consent to the offer for
sale, sale, transfer, tender, pledge, encumbrance, assignment
or other disposition of (collectively, "transfer"), and shall,
to the extent permitted by law, take all steps necessary to
prevent the transfer of, any or all of the Shares or any
interest therein except in connection with the transactions
contemplated by the Merger Agreement except for the transfer
of certain voting trust certificates held by persons other
than the Stockholder and his immediate family;
(ii) grant any proxies or powers of attorney
with respect to the Shares, deposit the Shares into a voting
trust or enter into a voting agreement, arrangement or
understanding with respect to the Shares (except pursuant to
the Voting Trust Agreement); or
(iii) take any action (A) that would make
any representation or warranty of the Stockholder or the
Trustee contained herein untrue or incorrect or would result
in a breach by the Stockholder or the Trustee of their
obligations under this Agreement or (B) to terminate the
Voting Trust.
(b) No Solicitation. Subject to Section 3(f), from
the date hereof until the Closing Date, or the earlier termination of
this Agreement in accordance with Section 7 hereof, the Stockholder and
the Trustee agree that they shall not, and shall not permit any of
their respective representatives, agents or affiliates (including,
without limitation, any investment banker, attorney or accountant
retained by the Stockholder or the Trustee), directly or indirectly, to
enter into, solicit, initiate or continue any discussions or
negotiations with, or provide any information to, or otherwise
cooperate in any other way with, any Person or group, other than Parent
and its affiliates, concerning any offer or proposal which constitutes
or is reasonably likely to lead to an Acquisition Proposal. The
Stockholder and the Trustee agree that they will immediately notify
Parent orally and in writing if any discussions or negotiations are
sought to be initiated, any inquiry or proposal is made, or any
information is requested with respect to any Acquisition Proposal or
which could lead to an Acquisition Proposal, and immediately notify
Parent of all material terms of any proposal which they may receive in
respect of any such Acquisition Proposal, including the identity of the
prospective purchaser or soliciting party if known, and thereafter
shall inform Parent on a timely, ongoing basis of the status and
content of any discussions or negotiations with such a third party,
including immediately reporting any material changes to the terms and
conditions thereof.
<PAGE>
(c) Reliance. The Stockholder and the Trustee
understand and acknowledge that Parent entered into the Merger
Agreement in reliance upon their execution and delivery of this
Agreement.
(d) Further Assurances. From time to time, at
Parent's request and without further consideration, the Stockholder and
the Trustee agree that they shall execute and deliver such additional
documents and take all such further reasonable and lawful action as may
be necessary or desirable to consummate and make effective, in the most
expeditious manner practicable, the purposes of this Agreement.
(e) Stockholder Termination Fee. In the event that
any Acquisition Proposal is consummated, then Stockholder shall pay to
Parent as soon as practicable, but in no event later than two business
days after receipt of the consideration paid to the Stockholder in
connection with such Acquisition Proposal an amount (the "Stockholder
Termination Fee") equal to the product of (x) the number of Shares
Beneficially Owned by the Stockholder (for himself or for the benefit
of another Person), multiplied by (y) the excess of the per share value
of consideration paid or payable in consequence of consummation of the
Acquisition Proposal (with the value of any non-cash consideration
being determined by agreement of Parent and the Stockholder or, failing
such agreement within 10 business days of consummation of such
Acquisition Proposal, as provided below) over the Merger Consideration
(as defined in the Merger Agreement). In the case of options on Shares,
to the extent the same are canceled for a payment in cash (the "Option
Payment"), the amount due hereunder shall be the amount by which the
Option Payment exceeds the product of (a) the number of Shares
underlying such options and (b) the Merger Consideration (as defined in
the Merger Agreement). In the event that the consideration paid or
payable in consequence of consummation of the Acquisition Proposal: (i)
consists solely of cash, then the Stockholder Termination Fee shall be
payable solely in cash, or (ii) consists of cash and other non-cash
property, or solely non-cash property, then the Stockholder Termination
Fee shall be payable in cash and such non-cash property in the same
proportion as the cash bears to the value of the non-cash property
issued or issuable in consequence of consummation of the Acquisition
Proposal (as such value is determined herein).
If Parent and the Stockholder, as the case may be,
fail to agree promptly on the value of such non-cash consideration,
then the parties shall appoint an independent investment banking firm
reasonably acceptable to Parent and the Stockholder to act as
arbitrator (the "Arbitrator"). Upon the selection of the Arbitrator,
Parent on the one hand and the Stockholder, on the other hand, shall
deliver to the Arbitrator and to each other their last and final offer
concurrently in writing (the "Certified Offers"). The Certified Offers
shall list one amount which the submitting party asserts is the
appropriate valuation of such non-cash consideration as of the date
<PAGE>
of submittal. The Arbitrator's sole role shall be to select which one
of the two Certified Offers most closely approximates the valuation the
Arbitrator would have determined for such non-cash consideration,
taking into account current market valuations of any publicly traded
securities which constitute such non-cash consideration. The Arbitrator
shall notify the parties of such determination. The determination of
the Arbitrator shall be binding on the parties. All costs and expenses
of the Arbitrator shall be borne by the parties whose Certified Offer
is not selected.
The Stockholder acknowledges that the agreements
contained in this Section 3(e) are an integral part of the transactions
contemplated by this Agreement and the Merger. Accordingly, if the
Stockholder shall fail to pay when due any amounts which shall become
due under Section 3(e) hereof, the Stockholder shall in addition hereto
pay to Parent all costs and expenses (including fees and disbursements
of counsel) incurred in collecting such overdue amounts, together with
interest on such overdue amounts from the date such payment was
required to be made until the date such payment is received at a rate
per annum equal to the Prime Rate as announced from time to time by
Citibank, N.A. as its "prime rate," "reference rate," "base rate" or
other similar rate. Any payment required to be made pursuant to this
Section 3(e) shall be made when due by wire transfer of immediately
available funds to an account designated by Parent.
The parties agree and acknowledge that in the event
that any Acquisition Proposal is consummated, it would be impracticable
and extremely difficult to ascertain with certainty the amount of
damages to Parent. Therefore, the parties agree that payment of the
Stockholder Termination Fee pursuant to this Section 3(e) shall
represent full liquidated damages hereunder in the event that any
Acquisition Proposal is consummated. The parties agree that no party
shall be liable for special, indirect, incidental or consequential
damages of any nature arising from this Agreement.
(f) Fiduciary Duty of Directors. Parent agrees and
acknowledges that the Stockholder is a director of the Company, and, in
such capacity, has fiduciary duties to the stockholders of Company.
Nothing in this Agreement (including, without limitation, Section 3(b))
shall be deemed to limit or affect the obligation of the Stockholder,
as a director of the Company, to take any and all action as may be
necessary in the exercise of his fiduciary duty to the stockholders of
the Company.
4. Representations and Warranties of the Stockholder and the
Trustee. The Stockholder and the Trustee, jointly and severally, hereby
represent and warrant to Parent as follows:
(a) Ownership of Shares. The Stockholder and the
Trustee are the record and/or Beneficial Owner of the Existing Shares
set forth besides their names on
<PAGE>
Exhibit A hereto. On the date hereof, the Existing Shares as set forth
on Exhibit A constitute all of the Shares owned of record or
Beneficially Owned by the Stockholder and the Trustee, respectively.
With respect to the number of shares set forth opposite the
Stockholder's and the Trustee's name on Exhibit A hereto, and with the
exceptions noted thereon, if any, the Stockholder or the Trustee has
sole voting power and sole power to issue instructions with respect to
the matters set forth in Sections 2 and 3 hereof and sole power to
agree to all of the matters set forth in this Agreement, in each case
with respect to all of the Existing Shares with no limitations,
qualifications or restrictions on such rights, subject to applicable
securities laws and the terms of this Agreement, and in the case of the
Stockholder, sole power of disposition, sole power of conversion, sole
power to demand appraisal rights with respect to all of the Existing
Shares with no limitations, qualifications or restrictions on such
rights, subject to applicable securities laws and the terms of this
Agreement. The Initial Beneficiary (as defined in the Voting Trust
Agreement) no longer has the power to direct voting of Shares or to
terminate the Voting Trust.
(b) Due Authorization. The Stockholder and the
Trustee have all requisite capacity, power and authority to execute and
deliver this Agreement and perform their respective obligations
hereunder. This Agreement has been duly and validly executed and
delivered by the Stockholder and the Trustee and constitutes a valid
and binding agreement enforceable against the Stockholder and the
Trustee in accordance with its terms except to the extent (i) such
enforcement may be limited by applicable bankruptcy, insolvency or
similar laws affecting creditors rights and (ii) the remedy of specific
performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought.
(c) No Conflicts. Except for filings, authorizations,
consents and approvals contemplated by the Merger Agreement and
necessary for the consummation of the transactions contemplated hereby
and thereby, (i) no filing with, and no permit, authorization, consent
or approval of, any state or federal public body or authority is
necessary for the execution of this Agreement by the Stockholder or the
Trustee and the consummation by the Stockholder and the Trustee of the
transactions contemplated hereby and (ii) none of the execution and
delivery of this Agreement by the Stockholder or the Trustee, the
consummation by the Stockholder or the Trustee of the transactions
contemplated hereby or compliance by the Stockholder or the Trustee
with any of the provisions hereof shall (A) result in a violation or
breach of, or constitute (with or without notice or lapse of time or
both) a default (or give rise to any third party right of termination,
cancellation, material modification or acceleration) under any of the
terms, conditions or provisions of any note, loan agreement, bond,
mortgage, indenture, license, contract, commitment, arrangement,
understanding, agreement or other instrument or obligation of any kind
to which the Stockholder or
<PAGE>
the Trustee is a party or by which the Stockholder, the Trustee or any
of their respective properties or assets may be bound, or (B) violate
any order, writ, injunction, decree, judgment, statute, rule or
regulation applicable to the Stockholder, the Trustee or any of their
respective properties or assets.
(d) No Encumbrances. Except as set forth on Exhibit A
or as otherwise permitted herein, the Shares and the certificates
representing such Shares are now, and at all times during the term
hereof, will be, held by the Stockholder or the Trustee, or by a
nominee, custodian or trust for the benefit of the Stockholder or the
Trustee, as the case may be, free and clear of all liens, claims,
security interests, proxies, voting trusts (except for the Voting Trust
Agreement) or agreements, understandings or arrangements or any other
encumbrances whatsoever, except for any such arising hereunder.
(e) Finder's Fees. No broker, investment banker,
financial advisor or other Person is entitled to any broker's,
finder's, financial adviser's or other similar fee or commission in
connection with the transactions contemplated hereby based upon
arrangements made by or on behalf of the Stockholder or the Trustee.
5. Representations and Warranties of Parent. Parent represents
and warrants to the Stockholder and the Trustee as follows:
(a) Organization. Parent is a corporation duly
organized, validly existing and in good standing under the laws of its
state of incorporation, and has all requisite corporate power or other
power and authority to execute and deliver this Agreement and perform
its obligations hereunder. The execution and delivery by Parent of this
Agreement and the performance by Parent of its obligations hereunder
have been duly and validly authorized by its Board of Directors and,
except as contemplated in the Merger Agreement, no other corporate
proceedings on the part of Parent are necessary to authorize the
execution, delivery or performance of this Agreement or the
consummation of the transactions contemplated hereby.
(b) Agreement. This Agreement has been duly and
validly executed and delivered by Parent and constitutes a valid and
binding agreement of Parent enforceable against Parent in accordance
with its terms, except that (i) such enforcement may be subject to
applicable bankruptcy, insolvency, or other similar laws, now or
hereafter in effect, affecting creditors' rights generally, and (ii)
the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceedings therefor may be
brought.
(c) No Conflicts. Except for filings, authorizations,
consents, and approvals contemplated by the Merger Agreement and
necessary for the
<PAGE>
consummation of the transactions contemplated hereby and thereby, (i)
no filing with, and no permit, authorization, consent or approval of,
any state or federal public body or authority is necessary for the
execution of this Agreement by Parent and the consummation by Parent of
the transactions contemplated hereby, and (ii) none of the execution
and delivery of this Agreement by Parent, the consummation by Parent of
the transaction contemplated hereby or compliance by Parent with any of
the provisions hereof shall (A) conflict with or result in any breach
of the charter or bylaws of Parent, (B) result in a violation or breach
of, or constitute (with or without notice or lapse of time or both) a
default (or give rise to any third-party right of termination,
cancellation, material modifications or acceleration) under any of the
terms, conditions or provisions of any note, loan agreement, bond,
mortgage, indenture, license, contract, commitment, arrangement,
understanding, agreement or other instrument or obligation of any kind
to which Parent is a party or by which Parent of its properties or
assets may be bound, or (C) violate any order, writ, injunction,
decree, judgment, statute, rule or regulation applicable to Parent or
its respective properties or assets.
6. Legend.
(a) The Stockholder and the Trustee agree with, and
covenant to, Parent that the Stockholder and the Trustee shall not
request that the Company register the transfer (by book-entry or
otherwise) of any certificate or uncertificated interest representing
any of the Shares, unless such transfer is in compliance with this
Agreement.
(b) The Stockholder and the Trustee agree that they
shall promptly after the date hereof surrender to Parent all
certificates representing the Shares held by the Stockholder or the
Trustee, and Parent shall place the following legend on such
certificates, which legend, except as otherwise expressly provided in
this Agreement, shall remain on such certificates until the termination
of this Agreement:
"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO AN
AGREEMENT, DATED AS OF AUGUST 9, 1999 AMONG CERTAIN STOCKHOLDERS AND
MIDNIGHT ACQUISITION HOLDINGS, INC. THE SHARES ARE SUBJECT TO
RESTRICTIONS ON TRANSFER OR ENCUMBRANCE AND VOTING. A COPY OF THE
AGREEMENT IS AVAILABLE AT THE PRINCIPAL OFFICE OF THE COMPANY."
7. Termination. This Agreement shall terminate upon the
earlier to occur of (i) the Closing Date, (ii) March 31, 2000 or (iii) the date
the Merger Agreement is terminated if the Merger Agreement is terminated
pursuant to Section 8.01(a) or (c) of the Merger Agreement; provided, however,
-------- -------
that if the Merger Agreement is terminated pursuant to Section 8.01(c) of the
Merger Agreement, such order, decree, ruling or
<PAGE>
other action shall not have resulted from any action taken by the Stockholder.
The parties hereto agree that the provisions of Section 3(e) (but only to the
extent an Acquisition Proposal is made, proposed, communicated, disclosed or
consummated prior to termination hereunder) and Section 8 shall survive any
termination of this Agreement, and no such termination shall relieve any party
of liability for a breach hereof prior to termination.
8. Confidentiality and Public Announcements. The parties
recognize that successful consummation of the transactions contemplated by this
Agreement may be dependent upon confidentiality with respect to the matters
referred to herein. In this connection, pending public disclosure thereof, each
of the parties hereto severally and not jointly agrees not to disclose or
discuss such matters with anyone not a party to this Agreement (other than its
counsel, advisors, corporate parents and affiliates) without the prior written
consent of the other parties hereto, except for filings required pursuant to the
Exchange Act and the rules and regulations thereunder or disclosures its counsel
advises are necessary in order to fulfill its obligations imposed by law or the
requirements of any securities exchange. At all times during the term of this
Agreement, the parties hereto will consult with each other before issuing or
making any reports, statements or releases to the public with respect to this
Agreement or the transactions contemplated hereby and will use good faith
efforts to agree on the text of public reports, statements or releases.
9. General Provisions.
(a) Expenses. Whether or not the transactions
contemplated hereby are consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated hereby
shall be paid by the party incurring such expenses, except as otherwise
specifically noted herein or in the Merger Agreement.
(b) Notices. All notices, requests, demands and other
communications which are required or may be given under this Agreement
shall be in writing and shall be deemed to have been duly given when
received if personally delivered; when transmitted if transmitted by
telecopy, electronic or digital transmission method; the day after it
is sent, if sent for next day delivery to a domestic address by
recognized overnight delivery service (e.g., Federal Express); and upon
receipt, if sent by certified or registered mail, return receipt
requested. In each case notice shall be sent to:
(i) if to Parent, to:
Midnight Acquisition Holdings, Inc.
c/o Asahi Organic Chemicals Industry Co., Ltd
15-9 Uchikanda 2-chome
Chiyoda-ku, Tokyo 101-0047
<PAGE>
Japan
Telephone: 03-3256-2451
Telecopy: 03-3254-3473
with copies to:
Chadbourne & Parke LLP
30 Rockefeller Plaza
New York, NY 10112
Attention: David M. Wilf, Esq.
Telephone: (212) 408-5100
Telecopy: (212) 541-5369
(ii) if to the Stockholder or the Trustee,
to the respective addresses set forth on Exhibit A.
(c) Interpretation. When a reference is made in this
Agreement to Sections, such reference shall be to a Section of this
Agreement unless otherwise indicated. Headings contained in this
Agreement are for reference purposes only and shall not affect in any
way the meaning or interpretation of this Agreement. Whenever the word
"include," "includes" or "including" are used in this Agreement, they
shall be deemed to be followed by the words "without limitation". This
Agreement shall not be construed for or against either party by reason
of the authorship or alleged authorship of any provision hereof or by
reason of the status of the respective parties. All terms defined in
this Agreement in the singular shall have comparable meanings when used
in the plural, and vice versa, unless otherwise specified.
(d) Entire Agreement; No Third-Party Beneficiaries.
This Agreement constitutes the entire agreement and supersedes all
prior agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof and is not intended
to confer upon any Person other than the parties hereto any rights or
remedies hereunder.
(e) Assignment. Transfers, neither this Agreement
nor any of the rights, interests or obligations hereunder shall be
assigned (whether by operation of law or otherwise) by the Stockholder
or the Trustee without the consent of Parent. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of
and be enforceable by the parties and their respective successors and
assigns.
(f) Governing Law. This Agreement shall be
construed, interpreted and the rights of the parties determined in
accordance with the laws of
<PAGE>
the Commonwealth of Massachusetts (without reference to the choice of
law provisions), except with respect to matters of law concerning the
internal corporate affairs of any corporate entity which is a party to
or the subject of this Agreement, and as to those matters the law of
the jurisdiction under which the respective entity derives its powers
shall govern.
(g) Severability. Each party agrees that, should any
court or other competent authority hold any provision of this Agreement
or part hereof to be null, void or unenforceable, or order any party to
take any action inconsistent herewith or not to take an action
consistent herewith or required hereby, the validity, legality and
enforceability of the remaining provisions and obligations contained or
set forth herein shall not in any way be affected or impaired thereby.
Upon any such holding that any provision of this Agreement is null,
void or unenforceable, the parties will negotiate in good faith to
modify this Agreement so as to effect the original intent of the
parties as closely as possible in an acceptable manner to the end that
the transactions contemplated by this Agreement are consummated to the
extent possible. Except as otherwise contemplated by this Agreement, to
the extent that a party hereto took an action inconsistent herewith or
failed to take action consistent herewith or required hereby pursuant
to an order or judgment of a court or other competent authority, such
party shall incur no liability or obligation unless such party did not
in good faith seek to resist or object to the imposition or entering of
such order or judgment.
(h) Injunctive Relief. Subject to the last paragraph
of Section 3(e), the parties acknowledge that it will be impossible to
measure in money the damages that would be suffered if the parties fail
to comply with any of the obligations herein imposed on them and that
in the event of any such failure, an aggrieved Person or entity will be
irreparably damaged and will not have an adequate remedy at law. Any
such Person or entity shall, therefore, be entitled to injunctive
relief, including specific performance, to enforce such obligations,
and if any action should be brought in equity to enforce any of the
provisions of this Agreement, none of the parties shall raise the
defense that there is an adequate remedy at law.
(i) Attorneys' Fees. If any party to this Agreement
brings an action to enforce its rights under this Agreement, the
prevailing party shall be entitled to recover its costs and expenses,
including without limitation reasonable attorneys' fees, incurred in
connection with such action, including any appeal of such action.
(j) Cumulative Remedies. All rights and remedies of
either party hereto are cumulative of each other and of every other
right or remedy such party may otherwise have at law or in equity, and
the exercise of one or more
<PAGE>
rights or remedies shall not prejudice or impair the concurrent or
subsequent exercise of other rights or remedies.
(k) Counterparts. This Agreement may be executed in
two or more counterparts, all of which shall be considered one and the
same instrument and shall become effective when executed and delivered
by each of the parties.
(l) Amendments, Waivers, Etc. This Agreement may not
be amended, changed, supplemented, waived or otherwise modified or
terminated, except upon the execution and delivery of a written
agreement executed by the parties hereto.
(m) Binding Agreement. The Stockholder and the
Trustee agree that this Agreement and the obligations hereunder shall
attach to the Shares and shall be binding upon any Person or entity to
which legal or Beneficial Ownership of such shares shall pass, whether
by operation of law or otherwise, including, without limitation, the
Stockholder's heirs, distributees, guardians, administrators,
executors, legal representatives, or successors or other transferees
(for value or otherwise) and any other successors in interest.
Notwithstanding any transfer of Shares the transferor shall remain
liable for the performance of all obligations under this Agreement of
the transferor.
(n) Capacity. For purposes of this Agreement and the
representations, covenants and promises contained herein, the
Stockholder is acting solely in his capacity as stockholder (of record
or beneficial) of, and not as a director, officer, employee,
representative or agent of, the Company and as trustee under the Voting
Trust Agreement.
(o) Consent and Jurisdiction. Each party irrevocably
and unconditionally agrees and consents that any suit, action or other
legal proceeding arising out of or related to this Agreement shall be
brought and heard in the Commonwealth of Massachusetts and each party
irrevocably consents to personal jurisdiction in any and all tribunals
in said State.
<PAGE>
IN WITNESS WHEREOF, the parties have executed this Agreement
as of the date first written above.
Midnight Acquisition Holdings, Inc.
By:
------------------------------------
Name:
Title:
--------------------------------------
Leslie B. Lewis, Individually
--------------------------------------
Leslie B. Lewis, Trustee
<PAGE>
Exhibit A
Stockholder Existing Shares (#)
-----------
Leslie B. Lewis 723,773*
120 Cabot Street
Chestnut Hill, Massachusetts 02167
Telephone No.:
Facsimile No.:
with a copy to:
Telephone No.: 617-951-6814
Facsimile No.: 617-951-1295
Attention: Seth A. Berry, Esq.
Trustee 207,257
c/o Gadsby & Hannah LLP
225 Franklin Street
Boston, MA 02110-2811
Telephone No.: 617-345-7000
Facsimile No.: 617-345-7050
Total 931,030
Total Outstanding
3,427,217
As of July 26, 1999
- ------------------------------
- -------------------------------
* 624,150 Shares subject to pledge to Boston Private Bank & Trust Company
pursuant to a Consumer Pledge and Security Agreement dated April 16, 1998,
as amended to the date hereof.
