0001144204-05-002402.txt : 20120703
0001144204-05-002402.hdr.sgml : 20120703
20050126172734
ACCESSION NUMBER: 0001144204-05-002402
CONFORMED SUBMISSION TYPE: SC 13D
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20050126
DATE AS OF CHANGE: 20050126
SUBJECT COMPANY:
COMPANY DATA:
COMPANY CONFORMED NAME: A CONSULTING TEAM INC
CENTRAL INDEX KEY: 0001040792
STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380]
IRS NUMBER: 133169913
STATE OF INCORPORATION: NY
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D
SEC ACT: 1934 Act
SEC FILE NUMBER: 005-53441
FILM NUMBER: 05551063
BUSINESS ADDRESS:
STREET 1: 200 PARK AVE S
STREET 2: SUITE 901
CITY: NEW YORK
STATE: NY
ZIP: 10003
BUSINESS PHONE: 2129798228
MAIL ADDRESS:
STREET 1: 200 PARK AVENUE SOUTH
STREET 2: SUITE 901
CITY: NEW YORK
STATE: NY
ZIP: 10003
FILED BY:
COMPANY DATA:
COMPANY CONFORMED NAME: OAK FINANCE INVESTMENTS LTD
CENTRAL INDEX KEY: 0001315086
IRS NUMBER: 000000000
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: SC 13D
BUSINESS ADDRESS:
STREET 1: 325 WATERFRONT DRIVE
STREET 2: OMAR HODGE BUILDING 2ND FLR WICKHAMS CAY
CITY: ROAD TOWN TORTOLA
STATE: D8
ZIP: 00000
BUSINESS PHONE: 212-548-2164
MAIL ADDRESS:
STREET 1: 325 WATERFRONT DRIVE
STREET 2: OMAR HODGE BUILDING 2ND FLR WICKHAMS CAY
CITY: ROAD TOWN TORTOLA
STATE: D8
ZIP: 00000
SC 13D
1
v011769_sc13d.txt
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. _____)*
The A Consulting Team, Inc.
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(Name of Issuer)
Common Stock
--------------------------------------------------------------------------------
(Title of Class of Securities)
000881 10 2
-----------
(CUSIP Number)
William A. Newman, Esq.
McGuireWoods LLP
1345 Avenue of the Americas, Seventh Floor
New York, NY 10105
(212) 548-2164
--------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized
to Receive Notices and Communications)
January 21, 2005
--------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss. 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the
following box.
NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See ss. 240.13d-7 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).
==================================================
CUSIP NO. 000881 10 2
==================================================
--------------------------------------------------------------------------------
1
NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES
ONLY)
Oak Finance Investments Ltd.
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2
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(See Instructions)
(a)
(b)
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3
SEC USE ONLY
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4
SOURCE OF FUNDS (See Instructions)
WC
--------------------------------------------------------------------------------
5
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e)
--------------------------------------------------------------------------------
6
CITIZENSHIP OR PLACE OF ORGANIZATION
British Virgin Islands
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7
NUMBER OF SHARES SOLE VOTING POWER
BENEFICIALLY OWNED
BY EACH REPORTING PERSONSHARES 2,274,697 (See Item 5)
BY EACH REPORTING PERSON ----------------------------------------
WITH 8
SHARED VOTING POWER
----------------------------------------
9
SOLE DISPOSITIVE POWER
2,274,697 (See Item 5)
----------------------------------------
10
SHARED DISPOSITIVE POWER
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,274,697 (See Item 5)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES
(See Instructions)
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
21.03% (See Item 5)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON (See Instructions)
CO
--------------------------------------------------------------------------------
Item 1 Security and Issuer.
This Statement relates to shares of the Common Stock, par value $.01 per
share (the "Shares"), of The A Consulting Team, Inc. (the "Company" or "TACT").
The principal executive offices of the Company are located at 200 Park Avenue
South, Suite 900, New York, New York 10003.
Item 2 Identity and Background.
This Statement is filed by Oak Finance Investments Ltd. ("Oak") as a
direct beneficial owner of Shares. Oak is a British Virgin Islands company. The
principal executive offices of Oak are located c/o Arias Fabrega & Fabrega Trust
Company BVI Ltd., 325 Waterfront Drive, Omar Hodge Building, 2nd Floor,
Wickham's Cay, Road Town, Tortola, British Virgin Islands. Oak is a company the
principal business of which is to engage in any lawful activity, including
making investments.
During the past five years, neither Oak nor, to the best knowledge of Oak,
any person named on Schedule A to this Statement, has been convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors).
During the past five years, neither Oak nor, to the best knowledge of Oak,
any person named in Schedule A to this Statement, was a party to a civil
proceeding of a judicial or administrative body of competent jurisdiction and as
a result of which proceeding Oak was or is subject to a judgment, decree or
final order enjoining future violations of, or prohibiting or mandating
activities subject to, federal or state securities laws or finding any violation
with respect to such laws.
Item 3 Source and Amount of Funds or Other Consideration.
On January 21, 2005, Oak entered into a Stock Purchase Agreement (the
"Company Stock Purchase Agreement") with TACT, pursuant to which Oak has agreed,
subject to certain conditions, to purchase from the Issuer a minimum of 625,000
and up to 1,250,000 Shares at a price of $8.00 per share, with the additional
Shares to be purchased by Oak or an assignee of Oak from TACT within 120 days
after the purchase of the initial 625,000 Shares, for a purchase price of $8.00
per Share. The maximum total amount of funds to be required by Oak to acquire
the Shares reported in Item 5(a) is $10,000,000, of which funds up to
$10,000,000 will be borrowed by Oak from Investec Bank (Channel Islands)
Limited, PO Box 188, La Vieille Cour, St. Peter Port, Guernsey, GY1 3LP
("Investec"). As of the date of this Statement, Oak understands that its loan
from Investec will not be secured by the Shares. Investec has not yet made
available to Oak the agreement under which it has indicated that it will advance
up to $10,000,000 to Oak. Since Oak has reserved the right under the Company
Stock Purchase Agreement to assign to certain third parties its right to
purchase $5,000,000 of Shares at a purchase price of $8.00 per Share from TACT,
it may or may not invest an additional $5,000,000 in TACT in excess of (i) the
$5,000,000 minimum amount that it has agreed to invest under the Company Stock
Purchase Agreement.
In addition, also on January 21, 2005, Oak entered into a Stock Purchase
Agreement (the "Shareholder Stock Purchase Agreement") with Shmuel BenTov
(together with persons with whom Shmuel BenTov shares beneficial ownership of
Shares, the "Selling Shareholder"), pursuant to which Oak agreed, subject to
certain conditions, to purchase from the Selling Shareholder 1,024,697 Shares
beneficially owned by the Selling Shareholder for an aggregate purchase prices
of $10,503,144.25, or $10.25 per Share; provided, that if the TACT does not pay
a dividend on the Shares of $0.75 per Share on or prior to the closing date of
the purchase and sale of the Shares, then the price per Share shall be increased
by the amount of the difference between $0.75 and the amount of any dividend
actually paid.
Accordingly, Oak's total minimum commitment to purchase Shares is for an
aggregate purchase price of $15,503,144.25, of which at least $10,000,000 will
be funded by a loan from Investec and the balance will be funded by either Oak's
own working capital or other sources which have not been determined at the time
of this Statement.
Item 4 Purpose of Transaction.
Oak engaged in the transaction (the Company Stock Purchase Agreement and
the Shareholder Stock Purchase Agreement) for investment purposes. Closing of
Oak's purchase of the Shares is to occur concurrently with the closing of the
Share Exchange Agreement, dated as of January 21, 2005 (the "Share Exchange
Agreement"), among TACT, the shareholders of Vanguard Info-Solutions
Corporation, a New Jersey corporation ("Vangaurd"). Pursuant to the Share
Exchange Agreement, the Company will issue 7,312,796 shares of its Common Stock
to the stockholders of Vanguard in exchange for 100% of the issued and
outstanding of capital stock of all classes of Vanguard. As described in Item 3,
pursuant to the Company Stock Purchase Agreement, the Company has agreed to
sell, and the Buyer has agreed to purchase, 625,000 Shares at a purchase price
of $8.00 per share, and Oak has agreed to purchase 1,024,697 Shares from the
Selling Shareholder.
Oak plans to acquire the Shares for investment. Oak will, however,
continually evaluate the business, financial condition and prospects of the
Company, the market price of the Company's Common Stock, its return on
investment, alternative investments and conditions in the United States economy
and in the industry in which the Company is engaged, with the view toward
determining whether to hold, decrease or increase its investment in the
Company's Common Stock. From time to time on or after the date on which it has
acquired the Shares from the Company and the Selling Shareholder, based upon
such evaluation Oak may sell all or a portion of its Shares of the Company's
Common Stock, or may purchase additional Shares of such Common Stock at varying
prices in the open market, in privately negotiated transactions and/or in other
transactions. Such sales may or may not occur at the same time as sales by other
persons who are acquiring shares from TACT concurrently with Oak's acquisition
of its Shares.
(a) If Oak and any assignees of Oak purchase the maximum number of shares
under the Company Stock Purchase Agreement to which they are entitled, TACT will
receive gross proceeds of $10,000,000 and will issue 1,250,000 shares to Oak and
its assignees, if any.
(b) The acquisition of Shares by Oak, any assignees of Oak and the
shareholders of Vanguard will result in (i) the issuance by TACT of at least
625,000 and as many as 1,250,000 Shares to Oak and its assignees at a purchase
price of $8.00 per share paid to the Company, (ii) the transfer by the Selling
Shareholder of 1,024,697 Shares to Oak for an aggregate purchase price of
between $10,503,144.25 and $11,271,667 paid to the Selling Shareholder and (iii)
the issue of an aggregate of 7,312,796 Shares to the stockholders of Vanguard,
in exchange for all of the outstanding capital stock of Vanguard. Based on the
number of issued and outstanding shares of the Company of 10,815,229 (assuming
the issuance of all 1,250,000 shares to Oak under the Company Stock Purchase
Agreement and the issuance of 7,312,796 Shares to the stockholders of Vanguard
under the Exchange Agreement), as a result of these transactions, Oak will
beneficially own 2,274,697 Shares, or 21.03% of the issued and outstanding
Shares, and the stockholders of Vanguard will own 7,312,796 Shares, or 67.62% of
the issued and outstanding Shares.
(d) The current board of directors of the Company is expected to change in
that it will be expanded from four to five members. Further, under the terms of
the Share Exchange Agreement, William Miller and Steven Mukomal, two of the four
current directors of the Company, will remain in office as directors, and Andrew
H. Ball and William A. Newman are expected to be named as additional members of
the Company's board of directors. Of these four, Messrs. Miller and Mukomal are
independent directors. The fifth director will be independent as well.
(e) The present capitalization of the Company will change after giving
effect to the transactions contemplated by the Exchange Agreement, the Company
Stock Purchase Agreement and the Shareholder Stock Purchase Agreement by
increasing the amount of Shares outstanding by (i) at least 625,000 and as many
as 1,250,000 Shares under the Company Stock Purchase Agreement, and (ii)
7,312,796 Shares under the Exchange Agreement.
(f) Oak intends that the Company's current information technology
consulting business will be operated as a single unit together with the domestic
operations of Vanguard that focuses on the information technology consulting
field in the United States and markets the services of the call center and
business process outsourcing operations of Vanguard's international
subsidiaries.
(g) Oak understands that following completion of the share exchange
transaction under the Exchange Agreement, the name of the Company may be
changed, with the consent of its shareholders, to "Vanguard Info-Solutions
International Inc."
Except as described above in this Item 4, none of the Reporting Persons
nor, to the best knowledge of the Reporting Persons, any other person named in
Schedule A to this Statement, has formulated any plans or proposals that relate
to or would result in any matter required to be described in response to
paragraphs (a) through (j) of Item 4 of this Schedule 13D.
Item 5 Interest in Securities of Issuer
(a) As of the date of this Statement, Oak is the direct beneficial owner
of 2,274,697 Shares, or approximately 21.03% of the 10,815,229 Shares that are
anticipated to be outstanding after giving effect to (i) the exchange of Shares
for shares of Vanguard that is contemplated by the Share Exchange Agreement and
(iii) to the purchase of the maximum number of Shares (1,250,000) to be
purchased under the Company Stock Purchase Agreement, according to the
information contained in the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30, 2004.
Oak does not currently beneficially own any Shares other than those
reported in this Statement. Oak's beneficial ownership of Shares arises solely
as a result of (i) its right under the Company Stock Purchase Agreement to
purchase at least 625,000 Shares and up to 1,250,000 Shares from the Company
under that agreement, and (ii) its right under the Shareholder Stock Purchase
Agreement to purchase 1,024,697 Shares from the Selling Shareholder. Oak may
acquire all of those Shares within 60 days from the date of this Statement,
assuming that all of the conditions precedent to such purchase and sale as set
forth in the Company Stock Purchase Agreement and the Shareholder Stock Purchase
Agreement are satisfied or waived.
Oak's right to purchase the Shares from TACT under the Company Stock
Purchase Agreement are subject to certain conditions, including:
o the accuracy of TACT's representations and warranties in the Company
Stock Purchase Agreement;
o the TACT's material performance of and compliance with the covenants
and obligations that TACT is required to perform or to comply with
under the Company Stock Purchase Agreement;
o the delivery of a legal opinion;
o the absence of any legal proceeding that challenges or seeks damages
or other relief in connection with any of the transactions
contemplated by the Company Stock Purchase Agreement, or that may
prevent or interfere with the contemplated transactions;
o the absence of any material adverse change in the business,
operations, properties, prospects, results of operations or
condition (financial or otherwise) of TACT or any of its
subsidiaries; and
o the consummation of the transactions contemplated by the Share
Exchange Agreement and the Shareholder Stock Purchase Agreement.
The obligations of TACT to sell the Shares to Oak and its assignees under
the Company Stock Purchase Agreement are subject to certain closing conditions,
including:
o the accuracy of Oak's representations and warranties in the Company
Stock Purchase Agreement;
o Oak's performance of and compliance with the covenants and
obligations that Oak is required to perform or comply with under the
Company Stock Purchase Agreement;
o the delivery of a legal opinion; and
o the absence of any legal requirement or any injunction or other
order that prohibits consummation of the transactions contemplated
by the Company Stock Purchase Agreement.
Oak's obligation to purchase the 1,024,697 Shares from the Selling
Shareholder is subject to certain conditions, including:
o the accuracy of the Selling Shareholder's representations and
warranties in the Shareholder Stock Purchase Agreement;
o the Selling Shareholder's material performance of and compliance
with the covenants and obligations that he is required to perform or
to comply with under the Shareholder Stock Purchase Agreement and
the Principal Shareholder's Agreement;
o the delivery of any required consents;
o the delivery of a legal opinion;
o the absence of legal proceedings that challenge or seek damages or
other relief in connection with any of the transactions contemplated
by the Shareholder Stock Purchase Agreement, or that may prevent or
interfere with the contemplated transactions;
o the absence of any claim by any person asserting that such person is
a beneficial holder of any of the Shares to be purchased by Oak or
is entitled to any portion of the purchase price payable by Oak;
o the absence of any material adverse change in the business,
operations, properties, prospects, results of operations or
condition (financial or otherwise) of TACT or any of its
subsidiaries; and
o the consummation of the transactions contemplated by the Share
Exchange Agreement and the Company Stock Purchase Agreement.
The Selling Shareholder's obligation to sell the 1,024,697 Shares to Oak
are subject to certain closing conditions, including:
o the accuracy of Oak's representations and warranties in the
Shareholder Stock Purchase Agreement;
o Oak's performance of and compliance with the covenants and
obligations that Oak is required to perform or comply with under the
Shareholder Stock Purchase Agreement;
o the delivery of any required consents;
o the delivery of a legal opinion; and
o the absence of any legal requirement or any injunction or other
order that prohibits consummation of the transactions contemplated
by the Shareholder Stock Purchase Agreement.
The Shareholder Stock Purchase Agreement may be terminated by the mutual
consent of Oak and the Selling Shareholder or if the closing of the purchase and
sale has not occurred on or before July 31, 2005, or if a material breach or
failure of a condition has occurred or if any governmental body has issued a
final order that permanently enjoins or otherwise prohibits the transactions
contemplated by the Share Exchange Agreement (unless the party relying on such
order has not complied with its obligations under the agreement with respect to
such matter).
The shareholders of Vanguard are the direct beneficial owners of the
number of shares and corresponding percentage of post-transaction Shares
outstanding, as set forth below, according to the information contained in the
Quarterly Report. The Reporting Persons believe that none of the shareholders of
Vanguard currently beneficially owns any Shares other than those set forth below
and reported in the Schedule 13D to be filed on or about the date of this
Statement by certain of the Shareholders of Vanguard.
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Vanguard Shareholders Number of Percentage Owned Percentage Owned
Shares (assuming only the minimum of (assuming the maximum of
625,000 Shares issued under 1,250,000 Shares issued
Company Stock Purchase under Company Stock Purchase
Agreement) Agreement)
Andrew H. Ball 2,303,531 22.61% 21.30%
Excalibur Investment Group Limited 4,972,701 48.80% 45.98%
Berenson Investments LLC 36,564 .38% .34%
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(b) Assuming the consummation of Oak's purchase of the maximum number of
shares it may purchase under the Company Stock Purchase Agreement and Oak's
purchase of Shares under the Shareholder Stock Purchase Agreement and, following
the completion of those acquisitions, Oak will have the direct power to vote and
direct the disposition of the Shares it will acquire. As of the date of this
Statement, all issued and outstanding shares of Oak are held by The Sonali
Trust, a discretionary trust organized on July 26, 2004 under the laws of Jersey
(the "Trust"). By virtue its relationship with Oak, the Trust may be deemed to
have the indirect power to vote and direct the disposition of the Shares that
Oak will acquire. Otherwise, no person shares the right to vote or the right to
direct the disposition of the Shares with Oak.
(c) Oak has not effected any transactions in the Shares during the 60 days
prior to the date of this Statement.
(d) Oak has the right to receive and the power to direct the receipt of
dividends from, and the proceeds from the sale of, the Shares that it will hold
after completion of the purchase and sale of Shares under the Company Stock
Purchase Agreement and the Shareholder Stock Purchase Agreement.
(e) Not applicable.
Item 6 Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
On January 21, 2005, (i) Oak and TACT entered into the Company Stock
Purchase Agreement and (ii) Oak and the Selling Shareholder entered into the
Shareholder Stock Purchase Agreement. The principal terms of the Company Stock
Purchase Agreement are summarized under Items 4 and 5 of this Statement and
below. The principal terms of the Shareholder Stock Purchase Agreement are
summarized under Items 4 and 5 of this Statement. Also on January 21, 2005, the
stockholders of Vanguard, their authorized representative and TACT entered into
the Exchange Agreement. The principal terms of the Exchange Agreement are
described under Items 4 and 5.
In connection with the Shareholder Stock Purchase Agreement, Oak and the
Selling Shareholder also entered into a separate agreement, dated as of January
21, 2005, (the "Principal Shareholder's Agreement"), pursuant to which the
Selling Shareholder has agreed to vote all 1,024,697 Shares that he beneficially
owns in favor of the transactions contemplated by the Share Exchange Agreement
and the Company Stock Purchase Agreement and to refrain from taking certain
actions regarding other potential transactions involving the Company (described
below). Pursuant to the Principal Shareholder's Agreement, to induce Oak to
enter into the Shareholder Stock Purchase Agreement, the Selling Shareholder has
agreed to execute and deliver the Principal Shareholder's Agreement with respect
to all 1,024,697 Shares that the Selling Shareholder beneficially owns, as well
as any Shares that he may acquire in the future. Pursuant to the Principal
Shareholder's Agreement, the Selling Shareholder has agreed, prior to the
termination of the Principal Shareholder's Agreement in accordance with its
terms, at any meeting (or any adjournment or postponement thereof), of the
Company's shareholders to vote his Shares (excluding 3,750 Shares registered in
the name of Ronit BenTov, the wife of Shmuel BenTov) (x) in favor of the
approval of the Share Exchange Agreement and the Company Stock Purchase
Agreement and each of the transactions contemplated by those agreements, (y)
against any action, proposal, transaction or agreement that to the knowledge of
the Shmuel BenTov would constitute a breach of any covenant, representation or
warranty of the Company or of the Selling Shareholder and (z) against any action
or proposal (other than as contemplated by the Exchange Agreement, the Company
Stock Purchase Agreement or the Shareholder Stock Purchase Agreement) involving
any of the following:
(i) any extraordinary corporate transaction the Company or its
subsidiaries, or any inquiry or offer with respect to a third party tender
offer, business combination or similar transaction involving all or more
than 10% of the assets of the Company or 10% or more of the Company's
capital stock, or any acquisition of 10% or more of the capital stock or
assets of the Company and its subsidiaries, taken as a whole, in a single
transaction or a series of related transactions (any such proposal, offer
or transaction is referred to in this Statement as a "Company Acquisition
Proposal");
(ii) a sale, lease or transfer of a significant part of the
Company's assets or a reorganization, recapitalization, dissolution or
liquidation of the Company;
(iii) any change in the board of directors that was not approved in
advance by at least a majority of the persons who were directors as of the
date of the Principal Shareholder's Agreement;
(iv) any change in the current capitalization of the Company;
(v) any other material change in the Company's corporate structure
or business; and
(vi) any other action or proposal involving the Company that is
intended or to the knowledge of the Shareholder would reasonably be
expected to prevent or postpone the transactions contemplated by the
Shareholder Stock Purchase Agreement.
The Selling Shareholder also agreed not to enter into any agreement that
conflicts with or could reasonably be expected to conflict with provisions of
the Principal Shareholder's Agreement or the Shareholder Stock Purchase
Agreement.
Pursuant to the Principal Shareholder's Agreement, the Selling Shareholder
irrevocably appointed Oak as his agent at any meeting of the Company's
shareholders, that may be called with respect to the matters referred to in
clauses (i) through (v) of the preceding paragraph. The Selling Shareholder has
agreed not to vote or execute any consent with respect to the matters as to
which it has granted a proxy to Oak, or grant any other proxy or power or
attorney with respect to any of the Shares with respect of those matters, not to
deposit any of the Shares into a voting trust and not to enter into any other
agreement to vote, or grant any proxy or give instructions with respect to the
voting of any Shares in connection with any of the matters referred to in (i)
through (v) of the preceding paragraph.
The Selling Shareholder has agreed under the Principal Shareholder's
Agreement not to, directly or indirectly, solicit, facilitate, participate in or
initiate any inquiries or the making of any proposal by any person which may
reasonably be expected to lead to any sale of the Shares or any Company
Acquisition Proposal, except to the extent that the Selling Shareholder takes
such action to comply with the Share Exchange Agreement. If the Selling
Shareholder receives an inquiry or proposal with respect to the sale of the
Shares, then the Selling Shareholder must promptly inform Oak of the terms and
conditions of such inquiry of proposal and the identity of the person making it.
The Selling Shareholder has also agreed to immediately cease any existing
activities, discussions or negotiations with any parties conducted before the
date of the Principal Shareholder's Agreement with respect to the any of the
foregoing.
The Selling Shareholder has also agreed not to, sell, transfer or pledge
any of his Shares. The Selling Shareholder may nonetheless take any action which
in his good faith judgment is required to fulfill his fiduciary duties as a
director of the Company. The Principal Shareholder's Agreement terminates on the
earlier of the consummation of the transactions under the Shareholder Stock
Purchase Agreement and the termination of the Principal Shareholder's Agreement
or either of the Shareholder Stock Purchase Agreement or the Company Stock
Purchase Agreement in accordance with their respective terms. In any event,
however, the grant of proxy to Oak terminates as to any Shares held by the
Selling Shareholder in excess of 500,000 if the Company's board of directors, in
the exercise of its fiduciary duties, withdraws, modifies or changes in any
manner adverse to Oak, its approval with regard to the Shareholder Stock
Purchase Agreement or its recommendation with regard to any of the transactions
contemplated by the Share Exchange Agreement or the Company Stock Purchase
Agreement.
The Shares to be purchased under the Company Stock Purchase Agreement are
restricted shares and may not be sold or otherwise transferred unless the sale
or other transfer is exempt from the registration requirements of the Securities
Act of 1933, as amended (the "Securities Act"). After it acquires Shares from
the Selling Shareholder and TACT, Oak will have the right to cause TACT to
register Oak's Shares for resale in accordance with the requirements of the
Securities Act. The Company has agreed that, within 90 days after Oak's initial
purchase of Shares under the Company Stock Purchase Agreement, it will file with
the SEC a registration statement for the resale of the 625,000 Shares purchased
by Oak and for the resale of any additional shares that Oak or an assignee of
Oak have purchased under the Company Stock Purchase Agreement. If the purchase
of the additional Shares in excess of the initial 625,000 Shares does not occur
within 20 days after the purchase of the initial 625,000 Shares, then within 90
days after the purchase of the additional Shares, the Company will file with the
SEC either a new registration statement or an amendment to the initial
registration statement that had been filed, in either case to register for
resale all of the additional Shares that are purchased. The purchasers of the
Shares under the Company Stock Purchase Agreement also have the right to demand
the registration for resale of any Shares issued to them in addition to or in
exchange for the purchased Shares. The Company has undertaken to use its
commercially reasonable efforts to cause the registration statements it files to
become effective as promptly as possible and to keep the registration statements
effective during the period that ends on the earlier of the second anniversary
of the initial purchase of the Shares and the date on which the purchasers no
longer own or have any rights to acquire Shares. The Company has also agreed to
take actions that are necessary to expedite and facilitate the disposition of
the Shares pursuant to the registration statements that the Company has filed.
If certain specified events occur, the Company is obligated to pay Oak and
any other purchaser under the Company Share Purchase Agreement as partial
liquidated damages an amount equal to 2% of the aggregate purchase price for the
Shares for each calendar month or part thereof until the registration statement
has been filed (if unfiled) or declared effective if filed or until any of the
other specified events has been corrected. The aggregate purchase price for the
Shares will be at least $5,000,000 and not more than $10,000,000. The specified
events include TACT's failure to timely file the registration statement within
the periods prescribed by the Company Stock Purchase Agreement, the failure of
the registration statement to become effective within 120 days after the initial
sale of shares under the Company Stock Purchase Agreement (or, if the SEC
reviews the registration statement, 150 days), the inability of a purchaser to
make sales pursuant to the registration statement other than by that purchaser's
failure to comply with legal requirements and the delisting of the shares from
trading. Payments of the specified amounts are partial compensation only and do
not constitute the executive remedies for the specified event.
The Company's board of directors has approved the transactions
contemplated by the Shareholder Stock Purchase Agreement, the Share Exchange
Agreement and the Company Stock Purchase Agreement and has agreed to recommend
to the Company's shareholders that they approve the transactions contemplated by
the Share Exchange Agreement and the Company Stock Purchase Agreement. The
approval of the shareholders of the Company is necessary to consummate the
transactions contemplated by the Share Exchange Agreement and the Company Stock
Purchase Agreement.
Under the Shareholder Stock Purchase Agreement, the Selling Shareholder
has agreed to convert all of the issued and outstanding shares of the Company's
Series A Preferred Stock, par value $0.01 per share, owed by him into Shares.
Other than set forth above, neither Oak nor, to the best knowledge of the
Oak, any person named in Schedule A to this Statement, has any contract,
arrangement, understanding or relationship (legal or otherwise) with any person
with respect to securities of the Company, including, but not limited to,
transfer or voting of any such securities, finder's fees, joint ventures, loans
or option arrangements, puts or calls, guarantees of profits, division of
profits or losses, or the giving or withholding of proxies.
Item 7
Material to be Filed as Exhibits.
Exhibit 1 Share Exchange Agreement, dated as of January 21,
2005, among Vanguard Info-Solutions Corporation (a New
Jersey corporation formerly known as B2B Solutions,
Inc.), the Vanguard Stockholders named therein, the
authorized representative named therein and The A
Consulting Team, Inc., incorporated by reference to
Exhibit 2.1 of the Current Report of The A Consulting
Team, Inc. on Form 8-K dated January 26, 2005.
Exhibit 2 Principal Shareholder's Agreement, dated as of January
21, 2005, between Shmuel BenTov and Oak Finance
Investments Limited, incorporated by reference to
Exhibit 9.1 of the Current Report of The A Consulting
Team, Inc. on Form 8-K dated January 26, 2005.
Exhibit 3 Stock Purchase Agreement, dated as of January 21,
2005, between The A Consulting Team, Inc. and Oak
Finance Investments Limited, incorporated by reference
to Exhibit 10.1 of the Current Report of The A
Consulting Team, Inc. on Form 8-K dated January 26,
2005.
Exhibit 4 Stock Purchase Agreement, dated as of January 21,
2005, between Shmuel BenTov and Oak Finance Investments
Limited, incorporated by reference to Exhibit 10.2 of
the Current Report of The A Consulting Team, Inc. on
Form 8-K dated January 26, 2005.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this Statement is true,
complete and correct.
Date: January 26, 2005
OAK FINANCE INVESTMENTS LIMITED
By: /s/ Brenda Patricia Cocksedge
-----------------------------------------
Name: Brenda Patricia Cocksedge
Title: Director
Signing in the capacities listed on
Schedule A attached hereto and
incorporated herein by reference.
SCHEDULE A
The business address of Oak is c/o Arias Fabrega & Fabrega Trust Company BVI
Ltd., 325 Waterfront Drive, Omar Hodge Building, 2nd Floor, Wickham's Cay, Road
Town, Tortola, British Virgin Islands. The sole director of Oak is Brenda
Patricia Cockedge, whose address is 26 Eleftherias, Lakatamia, Nicosia 2312
Cyprus, and whose present principal employment is self employed, acting as
director under arrangements with corporate entities via third party
intermediaries.