-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NjPrc3z4X0iPrcZDteDcOipPZeFleIE1yToQ5rNhWi57hOawx0EsQRI66z5EOTAk 6bZZCjfQFQQO6foTfUiwkQ== 0000914062-97-000276.txt : 19971023 0000914062-97-000276.hdr.sgml : 19971023 ACCESSION NUMBER: 0000914062-97-000276 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 19971007 ITEM INFORMATION: ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971022 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PROFIT RECOVERY GROUP INTERNATIONAL INC CENTRAL INDEX KEY: 0001007330 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-ENGINEERING, ACCOUNTING, RESEARCH, MANAGEMENT [8700] IRS NUMBER: 582213805 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-28000 FILM NUMBER: 97699270 BUSINESS ADDRESS: STREET 1: 2300 WINDY RIDGE PKWY STREET 2: STE 100 N CITY: ATLANTA STATE: GA ZIP: 30339-8426 BUSINESS PHONE: 7709553815 MAIL ADDRESS: STREET 1: 2300 WINDY RIDGE PKWY STREET 2: STE 100 NORTH CITY: ATLANTA STATE: GA ZIP: 30339-8426 8-K 1 FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 7, 1997 THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (Exact name of registrant as specified in charter) Commission File Number 0-28000 Georgia 58-2213805 (State or other jurisdiction of (IRS Employer Identification No.) incorporation) 2300 Windy Ridge Parkway Suite 100 North Atlanta, Georgia 30339-8426 (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code (770) 955-3815 (Former name or former address, if changed since last report) N/A 481577.3 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On October 7, 1997, The Profit Recovery Group International Group, Inc., a Georgia corporation (the "Company"), and its wholly owned subsidiary, PRG France S.A. ("PRG France"), acquired all of the outstanding capital stock of Financiere Alma S.A., a French company, and substantially all of the outstanding capital stock (98.3%) of Alma Intervention S.A., a French company, together with all of the equity interests of the wholly-owned subsidiaries of Alma Intervention, S.A. (collectively, "Alma"), pursuant to the terms of Share Purchase Agreements dated October 7, 1997 by and among the Company, PRG France and the equity holders of Alma. Alma is a recovery audit firm specializing in identifying and recovering various French tax overpayments. Pursuant to the Share Purchase Agreements, the total aggregate consideration paid to the former equity holders of Alma consisted of $24.6 million in cash and 858,827 unregistered shares of the Company's Common Stock. The consideration given to acquire the outstanding equity interests of Alma was determined as a result of arm's length negotiations among unrelated parties, and the acquisition will be accounted for using the purchase method of accounting. The description of the acquisition contained herein is qualified in its entirety by reference to the Agreements dated as of October 7, 1997 by and among the Company and the equity holders of Alma attached hereto as Exhibits 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7 and 2.8 and incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements. As of the date of filing this Current Report on Form 8-K, it is impracticable for the Company to provide the financial statements required by Item 7(a) of Form 8-K. In accordance with Item 7(a)(4) of Form 8-K, such financial statements shall be filed by amendment to this Form 8-K no later than December 22, 1997. (b) Pro Forma Financial Information. As of the date of filing this Current Report on Form 8-K, it is impracticable for the Company to provide the pro forma financial information required by Item 7(b) of Form 8-K. In accordance with Item 7(a)(4) of Form 8-K, such financial information shall be filed by amendment to this Form 8-K no later than December 22, 1997. 481577.3 -2- (c) Exhibits. Exhibit Number Description 2.1(a)* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and certain individual Stockholders of Alma Intervention S.A. 2.1(b)* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and certain individual Stockholders of Alma Intervention S.A. 2.2* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and Epargne Capitalisation Intermediaire and Epargne Developpement. 2.3* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and Sophie Davet. 2.4* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and Marc Eisenberg and Eric Eisenberg. 2.5* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and Banque Internationale a Luxembourg S.A. for share capital of Financiere Alma S.A. and Alma Intervention S.A. 2.6* Share Purchase Agreement dated as of October 7, 1997 among the Company, PRG France and Banque Internationale a Luxembourg S.A. for share capital of Alma Intervention S.A. 2.7* Warranty Agreement dated as of October 7, 1997 among the Company, PRG France, Marc Eisenberg and Eric Eisenberg. 2.8* Indemnity Escrow and Stock Pledge Agreement dated as of October 7, 1997 among the Company, PRG France, Marc Eisenberg, Eric Eisenberg, Banque Internationale a Luxembourg S.A. and Arnall Golden & Gregory, LLP. ____________________ * In accordance with Item 601(b)(2) of Regulation S-K, the schedules have been omitted and a list briefly describing the schedules is contained at the end of the Exhibit. The Company will furnish supplementally a copy of any omitted schedule to the Commission upon request. ITEM 9. SALES OF EQUITY SECURITIES PURSUANT TO REGULATION S. On October 7, 1997, in connection with the acquisition of substantially all of the outstanding capital stock of Alma, the Company issued 858,827 shares of its Common Stock to the former stockholders of Alma as part of the consideration of the acquisition price. The shares were sold outside the United States in reliance on multiple exemptions from registration including, without limitation, Regulation S under the Securities Act of 1933, as amended. 481577.3 -3- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. Date: October 22, 1997 By: /s/ Donald E. Ellis, Jr. _______________________________ Donald E. Ellis, Jr., Senior Vice President, Chief Financial Officer and Treasurer -4- EX-2 2 EXHIBIT 2.1(A) 481577.3 SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) MARC EISENBERG, AS ATTORNEY-IN-FACT FOR THOSE PERSONS WHOSE NAMES ARE SET OUT ON ANNEX 1 ATTACHED HERETO --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Financiere Alma SA and Alma Intervention SA --------------- THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr, acting as attorney (mandataire) in the name and on behalf of PRG France SA, a French societe anonyme in the process of formation at the date hereof ("Agent") , PRG France SA which expression shall on formation of PRG France SA mean PRG France SA), PRG, Agent and PRG France SA being called together the "PURCHASER" which expression includes each or any of them; (2) MARC EISENBERG, AS ATTORNEY-IN-FACT FOR THOSE PERSONS WHOSE NAMES AND ADDRESSES ARE SET OUT ON ANNEX 1 ATTACHED HERETO (the "VENDOR"). THE PARTIES AGREE AS FOLLOWS: 1. SALE AND PURCHASE 1.1 On or after December 31, 1998 and not later than January 5, 1999 (the "COMPLETION DATE"), (i) the Vendor shall sell to PRG and PRG shall purchase from the Vendor the numbers of shares in Alma Intervention SA ("AI") of which the Vendor is the owner as set out in Section 1 of ANNEX 1, and (ii) the Vendor shall sell and the Agent shall purchase the number of shares in AI of which the Vendor is the owner as set out in Section 2 of ANNEX 1, in each case with effect from the Completion Date free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in AI (collectively the "AI SHARES"). On the Completion Date, the Vendor shall deliver to the Purchaser the shares transfer forms relating to all the AI Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser. 1.2 The Vendor hereby represents, warrants, covenants and undertakes with the Purchaser (so as to bind him, his personal representatives, successors and assigns) as follows: 1.2.1 that Vendor has the right to dispose of the AI Shares which he sells to Purchaser; - 1 - 1.2.2 that Vendor is disposing of the AI Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 1.2.3 as set out in ANNEX 2 to this Agreement; 1.2.4 that Vendor has made available to each person from whom Vendor received a "pouvoir" all information concerning PRG and its business and has informed such persons of the availablity of the investment representations, Risk Factors and other matters set forth in ANNEX 2 to this Agreement and has provided copies of ANNEX 2 to any person who requested same; 1.2.5 that Vendor warrants, covenants and undertakes with Purchaser that each Pouvoir attached to this Agreement is an original pouvoir executed by the person whose name appears on same, and the each such person executed such pouvoir as a voluntary act and with full right and authority; 1.2.6 that Vendor warrants, covenants and undertakes with Purchaser that each pouvoir attached to this Agreement is valid and enforceable and vests the Vendor with full right and authority to enter into this Agreement for and on behalf of the persons whose names are set forth on ANNEX 1 attached hereto; and 1.2.7 that, at the Completion Date, Vendor shall reaffirm all of the warranties and representations contained herein as being true and correct at Completion as if such warranties and representations were made at that time. 1.3 The price for the AI Shares to be sold by the Vendor to PRG pursuant to this Agreement shall be paid by PRG by the delivery at the Completion Date of 13,900 Shares of no par value common stock of PRG (the "STOCK") in the proportions set out in Annexe 1. The Vendor acknowledges and agrees the the Stock will from the Completion Date be subject to the restrictions set forth on ANNEX 2 to this Agreement. 1.4 The price for the AI Shares to be sold by the Vendor to PRG France is US $ 398,244 to be paid at the Completion Date by way of one or more bankers drafts as set forth in ANNEX 1. - 2 - 1.5 The Vendor warrants, covenants and represents to Purchaser that promptly after the Completion Date, he will deliver to the persons whose names are set forth on ANNEX 1 attached hereto stock certificates representing the appropriate number of shares of PRG Stock and cash in accordance with the amounts set forth on said ANNEX 1. 2. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendor as set out in ANNEX 3 of this Agreement. 3. FURTHER ASSURANCES At any time after the Completion Date, the Vendor shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or PRG France with the full legal and beneficial title to the AI Shares referred to in ANNEX 1 and giving to the Purchaser the full benefit of this Agreement. 4. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. 5. GOVERING LAW AND RULING VERSION 5.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 5.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. - 3 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Broadwalk House, 5 Appold Street, London EC2A 2HA as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. /s/ Clinton McKellar, Jr. - -------------------------------- By: Mr. Clinton McKellar, Jr. Title: Senior Vice President and General Counsel /s/ CLINTON MCKELLAR, JR. - ------------------------------------------- MR. CLINTON MCKELLAR, JR., AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION MR MARC EISENBERG AS ATTORNEY OF FACT FOR THOSE PERSONS WHOSE NAMES ARE SET OUT IN ANNEX 1 By: /s/ Marc Eisenberg - -------------------------------- Title: - 4 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 List of names and addresses of persons executing a Pouvoir in favor of Marc Eisenberg Annex 2 Warranties of Vendor Annex 3 Warranties by PRG EX-2 3 EXHIBIT 2.1(B) SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) MARC EISENBERG, AS ATTORNEY-IN-FACT FOR THOSE PERSONS WHOSE NAMES ARE SET OUT ON ANNEX 1 ATTACHED HERETO --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Financiere Alma SA and Alma Intervention SA --------------- - 1 - THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton Mc Kellan, Jr., acting as attorney (mandataire) in the name and on behalf of PRG France SA a French societe anonyme in the process of formation at the date hereof ("AGENT") which expression shall on formation of PRG France SA mean PRG France SA), PRG Agent and PRG France SA being called together the "PURCHASER" which expression includes each or any of them; (2) MARC EISENBERG, AS ATTORNEY-IN-FACT FOR THOSE PERSONS WHOSE NAMES ARE SET OUT ON ANNEX 1 ATTACHED HERETO (the "VENDOR"). THE PARTIES AGREE AS FOLLOWS: 1. SALE AND PURCHASE 1.1 The Vendor sells to PRG and PRG purchases from the Vendor (i) the numbers of shares in Financiere Alma SA ("FA") and the number of shares of Alma Intervention SA ("AI") of which the Vendor is the owner as set out in Section 1 of ANNEX1, and (ii) the Vendor sells and the Agent purchases the number of shares in FA and the number of shares of AI of which the Vendor is the owner as set out in Section 2 of ANNEX 1, in each case with effect from 1 October 1997 free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in FA (collectively, the "FA SHARES") and all such shares in AI (collectively the "AI SHARES"). As at date hereof the Vendor delivers to the Purchaser the shares transfer forms relating to all the FA Shares and AI Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser and the Agent, as appropriate. 1.2 The Vendor hereby represents, warrants, covenants and undertakes with the - 2 - Purchaser (so as to bind them, their personal representatives, successors and assigns) as follows: 1.2.1 that Vendor has the right to dispose of the FA Shares and the AI Shares which they sell to Purchaser; 1.2.2 that Vendor is disposing of the FA Shares and AI Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 1.2.3 as set out in ANNEX 2 to this Agreement; 1.2.4 that Vendor has made available to each person from whom Vendor received a "pouvoir" all information concerning PRG and its business and has informed such persons of the availablity of the investment representations, Risk Factors and other matters set forth in ANNEX 2 to this Agreement and has provided copies of ANNEX 2 to any person who requested same; 1.2.5 that Vendor warrants, covenants and undertakes with Purchaser that each pouvoir attached to this Agreement is an original Pouvoir executed by the person whose name appears on same, and that each person executed such pouvoir as a voluntary act and with full right and authority; and 1.2.6 that Vendor warrants, covenants and undertakes with Purchaser that each pouvoir attached to this Agreement is valid and enforceable and vests the Vendor with full right and authority to enter into this Agreement for and on behalf of the persons whose names are set forth on ANNEX 1 attached hereto. 1.3 The price for the FA Shares and the AI Shares sold by the Vendor to PRG pursuant to this Agreement shall be paid by PRG by the delivery of 13,348 shares of no par value common stock of PRG (the "STOCK") in the proportions set out in ANNEX 1 hereto. The Vendor acknowledges and agrees the the Stock is subject to the restrictions set forth on ANNEX 2 to this Agreement. 1.4 The price for the FA Shares and AI Shares sold by the Vendor to the PRG France Shareholders is US $ 512,271 paid at the date hereof by way of one bankers drafts as set forth in ANNEX 1. 1.5 The Vendor warrants, covenants and represents to Purchaser that he will - 3 - promptly deliver to the persons whose names are set forth on ANNEX 1 attached hereto stock certificates representing the appropriate number of shares of PRG Stock and cash in accordance with the amounts set forth on said ANNEX 1. 2. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendor as set out in ANNEX 3 of this Agreement. 3. FURTHER ASSURANCES At any time after the date hereof the Vendor shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or the Agent with the full legal and beneficial title to the FA Shares and the AI Shares referred to in ANNEX 2 and giving to the Purchaser the full benefit of this Agreement. 4. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire FA Shares and the AI Shares in Section 1 of ANNEX 1 with the intention of immediately transferring them to the Agent on behalf of PRG France SA in the process of being formed. 5. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. - 4 - 6. GOVERING LAW AND RULING VERSION 6.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 6.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Broadwalk House, 5 Appold Street, London EC2A 2HA, as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. /s/ Clinton McKellar,Jr. - -------------------------------- By: Mr. Clinton McKellar, Jr. Title: Senior Vice President and General Counsel /s/ Clinton McKellar, Jr. - -------------------------------- MR CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION MR MARC EISENBERG AS ATTORNEY OF FACT FOR THOSE PERSONS ABOVE NAMES ARE SET OUT IN ANNEX 1 By:/s/ Marc Eisenberg - -------------------------------- Title: - 5 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 List of names and addresses of persons executing a Pouvoir in favor of Marc Eisenberg Annex 2 Warranties of Vendor Annex 3 Warranties by PRG EX-2 4 EXHIBIT 2.2 SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) EPARGNE CAPITALISATION INTERMEDIAIRE AND EPARGNE DEVELOPPEMENT --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Financiere Alma SA --------------- THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr. acting as attorney (mandataire) in the name and on behalf of PRG France SA, a French societe anonyme in the process of formation at the date hereof ("Agent") which expression shall on formation of PRG France SA mean PRG France SA), PRG, Agent and PRG France SA being called together the "PURCHASER" which expression includes each or any other; (2) EPARGNE CAPITALISATION INTERMEDIAIRE and EPARGNE DEVELOPPEMENT; individually a "VENDOR" and together the "VENDORS". THE PARTIES AGREE AS FOLLOWS:- 1. SALE AND PURCHASE 1.1 The Vendors sell to PRG and PRG purchases from the Vendors (i) the numbers of shares in Financiere Alma ("FA") of which each of the Vendors is the owner as set out opposite each of the Vendors' names in Section 1 of ANNEX 1, and (ii) the Vendors sell and the Agent purchases the number of shares in FA of which each of the Vendors is the owner as set out opposite each of the Vendors' names in Section 2 of ANNEX 1, in each case with effect from 1 October 1997 free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in FA (collectively, the "FA SHARES"). As at date hereof the Vendors deliver to the Purchaser the shares transfer forms relating to all the FA Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser and the Agent, as appropriate. 1.2 The Vendors hereby represent, warrant, covenant and undertake with the Purchaser (so as to bind them, their personal representatives, successors and assigns) as follows: - 2 - 1.2.1 that each of them has the right to dispose of the FA Shares which they sell to Purchaser; 1.2.2 that each of them is disposing of the FA Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 1.2.3 as set out in ANNEX 2 to this Agreement; 1.2.4 that they hereby unconditionally remise, release and forever discharge FA, Alma Intervention SA ("AI"), and all subsidiaries and affiliates of FA and AI, the Purchasers and all subsidiaries and affiliates of PRG, and all officers and directors of any and all of the foregoing entities (collectively the "RELEASED PARTIES") from all and any claims whatsoever they may have against any and all of the Released Parties; 1.2.5 that they hereby waive and release any and all right, title and interest of any nature whatsoever in FA, AI or any of their subsidiaries and affiliates, or the business, assests or profits of same arising out of, resulting from or relating to any agreement, oral or written, by law or otherwise, including but not limited to any investment agreement, loan agreement, shareholders' agreement or the like;and 1.2.6 that they acknowledge that Mr Marc Eisenberg has made available all information concerning the purchase and sale of 100% of all the shares in FA and AI, including but not limited to the matters set forth in ANNEX 3 attached hereto. 1.3 The price for the FA shares sold by the Vendors to PRG pursuant to this Agreement shall be paid by PRG by the delivery of shares of no par value common stock of PRG (the "STOCK") in such numbers as are set out against each of the Vendors' names in Section 1 of ANNEX 1. The Vendors acknowledge and agree the the Stock is subject to the restrictions set forth in ANNEX 2 to this Agreement. 1.4 The aggregate price for the FA shares sold by the Vendors to the Agent is US $ 2 948 304,84 paid at the date hereof by way of two bankers drafts in such amounts as are set out against each of the Vendors' names in Section 2 of ANNEX 1. - 3 - 2. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendors as set out in ANNEX 4 of this Agreement. 3. FURTHER ASSURANCES At any time after the date hereof the Vendors shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or the Agent with the full legal and beneficial title to the FA Shares referred to in ANNEX 1 and giving to the Purchaser the full benefit of this Agreement. 4. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. 5. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire the FA Shares in Section 1 of Annexe 1 with the intention of immediately transferring them to the Agent on behalf of PRG France SA in the process of being formed. 6. GOVERING LAW AND RULING VERSION 6.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 6.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. - 4 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Broadwalk House, 5 Appold Street, London EC2A 2HA, as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. /s/ Clinton McKellar, Jr. - -------------------------------- By: Mr Clinton McKellar, Jr. Title: Senior Vice President and General Counsel /s/ Clinton McKellar, Jr. - -------------------------------- MR CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION EPARGNE CAPITALISATION INTERMEDIAIRE By:/s/ Marc Eisenberg - -------------------------------- Title: Attorney EPARGNE DEVELOPPEMENT By:/s/ Marc Eisenberg - -------------------------------- Title: - 5 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 Schedule of Shares Sold Annex 2 Warranties of Vendor Annex 3 Letter from Denis Metzer of Epargne Partners Annex 4 Warranties of PRG EX-2 5 EXHIBIT 2.3 SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) SOPHIE DAVET --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Financiere Alma SA and Alma Intervention SA --------------- THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr., acting as attorney (mandataire) in the name and on behalf of PRG France SA a French societe anonyme in the process of formation at the date hereof ("AGENT") (which expression shall on formation of PRG France SA mean PRG France SA), PRG Agent and PRG France SA being called together the ("PURCHASER") which expression includes each or any of them; (2) SOPHIE DAVET (the "VENDOR"). RECITALS: (A) PRG is in the business of auditing accounts payable, paid bill files, promotional and demonstrator agreements, personal property, real estate, sales and use tax and other taxes, common area maintenance charges, telephone and other utilities, sales promotion, advertising and cosmetic wage/commission agreements of its clients, to identify and document for subsequent charge back or credit over-payments and/or under-deductions and rendering management consultingg services associated with such activities. (B) The Vendor is at the date hereof the owner of (i) the numbers of shares in Financiere Alma SA ("FA") and Alma Intervention S.A. ("AI") set out opposite her name in Section 1 of Annex 1 hereto, and (ii) the number of shares in FA and AI set out opposite her name in Section 2 of ANNEX 1 hereto. (C) Alma Group (as defined below) is in the business of providing management consulting services primarily on a success fee basis, involving research and recovery of various French indirect taxes (e.g. fiscal taxes, foncier taxes and VAT taxes) and social charges; providing general expense reduction in various areas including building services and surveillance; assisting its clients in obtaining grants or subsidies; and operating buying clubs for small business. (D) This Agreement sets out the terms and conditions pursuant to which (i) the Vendor sells and PRG purchases all of the FA Shares and all of the AI Shares owned by the Vendor as set out in Section 1 of ANNEX 1 and (ii) the Vendor sells - 2 - and the Agent purchases all of the FA Shares and all of the AI Shares owned by the Vendor as set out in Section 2 of ANNEX 1. It is the intention of PRG to immediately resell the FA Shares and AI Shares so acquired by PRG to the Agent on behalf of and for the account of PRG France SA, a societe anonyme in the process of being formed. IN CONSIDERATION OF THE MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS:- 1. INTERPRETATION "AI" means Alma Intervention SA; "ALMA GROUP" means FA, AI, STEP SARL, Club Affaires SA, Meridian Club France SA and B&T Associes SARL FA, and all of them or each of them as the context admits; "FA" means Financiere Alma SA; "PRG GROUP" means PRG and its subsidiaries as the same may exist from time to time; "PROSPECTIVE CLIENT" means as the date of determination, any person to whom the Alma Group has sent or delivered a written sale or servicing proposal or contract in connection with the Business of Alma Group; 2. SALE AND PURCHASE 2.1 The Vendor sells to PRG and PRG purchases from the Vendor (i) the numbers of shares in FAand the number of shares in AI of which the Vendor is the owner as set out in Section 1 of ANNEX 1, and (ii) the Vendor sells to the Agent and the Agent purchases the number of shares in FA and the number of shares in AI of which the Vendor is the owner as set out in Section 2 of ANNEX 1, in each case with effect from 1 October 1997 free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in FA (collectively, the "FA SHARES") and all such shares in AI (collectively the "AI SHARES"). As at date hereof the Vendor delivers to the Purchaser the shares transfer forms relating to all the FA Shares and AI Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser and the Agent, as appropriate. 2.2 The Vendor hereby represents, warrants, covenants and undertakes with the - 3 - Purchaser (so as to bind her, her personal representatives, successors and assigns) as follows: 2.2.1 that Vendor has the right to dispose of the FA Shares and the AI Shares which she sells to Purchaser; 2.2.2 that Vendor is disposing of the FA Shares and AI Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 2.2.3 as set out in ANNEX 2 to this Agreement;and 2.2.4 as set out in ANNEX 3 to this Agreement. 2.3 The price for the FA Shares and the AI Shares sold by the Vendor to PRG pursuant to this Agreement is paid by PRG by the delivery of 16,703 shares of no par value common stock of PRG (the "STOCK"). The Vendor acknowledges and agrees the the Stock is subject to the restrictions set forth on ANNEX 2 to this Agreement. 2.4 The price for the FA Shares and AI Shares sold by the Vendor to the Agent is US $ 497,025.18 paid at the date hereof by way of of bankers draft. 3. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendor as set out in ANNEX 4 of this Agreement. 4. FURTHER ASSURANCES At any time after the date hereof the Vendor shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or the Agent with the full legal and beneficial title to the FA Shares and the AI Shares referred to in ANNEX 1 and giving to the Purchaser the full benefit of this Agreement. 5. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire the FA Shares and the AI Shares in Section 1 of Annex 1 with the intention of immediately transferring them to the Agent on behalf of PRG France SA in the process of being formed. - 4 - 6. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. 7. GOVERING LAW AND RULING VERSION 7.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 7.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. - 5 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Broadwalk House, 5 Appold Street, London EC2A 2HA, England, as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. /s/ Clinton McKellar, Jr. - -------------------------------- By: Mr Clinton McKellar, Jr. Title: Senior Vice President and General Counsel /s/ Clinton Mckellar, Jr. - -------------------------------- MR CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION SOPHIE DAVET /s/ Sophie Davet - -------------------------------- - 6 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 Schedule of Shares Sold Annex 2 Warranties of Vendor Annex 3 Restrictive Covenants Annex 4 Warranties by PRG EX-2 6 EXHIBIT 2.4 Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) CLINTON MCKELLAR, JR, AS MANDATAIRE FOR THE SHAREHOLDERS OF PRG FRANCE IN FORMATION - AND - (3) THE VENDORS (AS DEFINED HEREIN) _____________________________________ SALE AGREEMENT for the acquisition of 28.28 per cent of the share capital of Financiere Alma SA and 10.44 per cent of the share capital of Alma Intervention SA ______________________________________ - 1 - THIS AGREEMENT is made on 7 October 1997 BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton Mc Kellar, Jr., acting as Agent (mandataire) in the name and on behalf of PRG France SA a French societe anonyme in the process of formation at the date hereof ("AGENT") (which expression shall on formation of PRG France SA mean PRG France SA), PRG, Agent and PRG France SA being called together the "PURCHASER" which expression includes each or any of them; (2) MARC EISENBERG of 14, rue Margueritte, 75017 Paris and ERIC EISENBERG of 4, rue Juliette Lambert, 75017 Paris individually a "VENDOR" and together "THE VENDORS". RECITALS: (A) PRG is in the business of auditing accounts payable, paid bill files, promotional and demonstrator agreements, personal property, real estate, sales and use tax and other taxes, common area maintenance charges, telephone and other utilities, sales promotion, advertising and cosmetic wage/commission agreements of its clients, to identify and document for subsequent charge back or credit over-payments and/or under-deductions and rendering management consulting services associated with such activities. (B) The Vendors are at the date hereof the owners of (i) the numbers of shares in Financiere Alma SA ("FA") set out in Annex 1 hereto, such shares comprising in aggregate 28.28 per cent of the share capital of FA and (ii) the number of shares in Alma Intervention SA ("AI") set out in Annex 1 hereto. Such shares in AI comprise 39.42 per cent of all the shares of AI, 60.58 per cent of the remainder being owned by FA. (C) Alma Group (as defined below) is in the business of providing management consulting services primarily on a success fee basis, involving research and recovery of various French indirect taxes (e.g. fiscal taxes, foncier taxes and VAT taxes) and social charges; providing general expense reduction in various areas including building services and surveillance; assisting its clients in obtaining grants or subsidies; and operating buying clubs for small business. (D) This Agreement sets out the terms and conditions pursuant to which (i) the Vendors sell and PRG purchases all of the FA Shares and all of the AI Shares owned by the Vendors as set out in Annex 1 and (ii) the Vendors sell and the PRG France Shareholder - 2 - purchase all of the FA Shares and all of the AI Shares owned by the Vendors as set out in Annex 1. It is the intention of PRG to immediately resell the FA Shares and AI Shares so acquired by PRG to the PRG France Shareholders on behalf of and for the account of PRG France SA, a societe anonyme in the process of being formed by the PRG Shareholders. IN CONSIDERATION OF THE MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS:- 1. INTERPRETATION 1.1 The following provisions shall have effect for the interpretation of this Agreement. 1.2 The following words and expressions and abbreviations shall, unless the context otherwise requires, have the following meanings: "AI" means Alma Intervention SA; "AI SHARES" means all the shares in the capital of AI as set out in Annex 2; "ALMA GROUP" or the "COMPANY" means FA, and the Subsidiaries, all of them or each of them as the context admits; "COMPLETION" means the date hereof; "COMPLETION DATE" means the date hereof; "DORMANT COMPANIES" means Almatel SARL, Alma Sud SARL and Cabinet Brossard SARL; "EMPLOYMENT AGREEMENT OF MR ERIC EISENBERG" means the Employment Agreement entered into between Mr Eric Eisenberg and AI in the form set out in Annex 4 hereto; "ENCUMBRANCE" means any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right; "FA" means Financiere Alma; "FA SHARES" means all the shares in the capital of FA as set out in Annex 3; "MANDATE" means the mandate as President of AI to be entered into between Mr Marc Eisenberg and AI in the form set out in Annex 5 hereto; "PRG GROUP" means PRG and its subsidiaries as the same may exist from time to time; "PROSPECTIVE CLIENT" means as the date of determination, any person to whom the Company has sent or delivered a written sale or servicing proposal or contract in connection with the Business of the Company; "PURCHASER'S LAWYERS" means Ashurst Morris Crisp of Paris, 22, rue de Marignan, 75008 Paris; "SEC" means the United States Securities and Exchange Commission; "SECURITIES ACT" means the United States Securities Act of 1933, as amended; - 3 - "STOCK" means shares of the common stock of PRG of no par value per share; "SUBSIDIARY" or "SUBSIDIARIES" means the subsidiaries of FA, all of them or each of them as the context admits being AI, STEP SARL, Club Affaires SA, Meridian Club France SA, B & T Associes SARL; "VENDORS" means Marc and Eric Eisenberg whose addresses are set out at the beginning of this Agreement (individually a "VENDOR" and together the "VENDORS"); "VENDORS' LAWYERS" means Wilinski & Scotto of 19, rue Marbeuf, 75008 Paris. 1.3 References to the parties hereto include their respective permitted assignees and/or the respective successors in title to substantially the whole of their respective undertakings and, in the case of individuals, to their respective estates and personal representatives. 1.4 References to persons shall include bodies corporate and unincorporated, associations, partnerships and individuals. Words denoting the singular shall include the plural and words denoting any gender shall include all genders. 1.5 References to statutes or statutory provisions include references to any orders or regulations made thereunder and references to any statute, provision, order or regulation include references to that statute, provision, order or regulation as amended, modified, re-enacted or replaced from time to time whether before or after the date hereof (subject as otherwise expressly provided herein) and to any previous statute, statutory provision, order or regulation amended, modified, re-enacted or replaced by such statute, provision, order or regulation. 1.6 Headings to clauses, paragraphs and descriptive notes in brackets relating to provisions of taxation statutes are for information only and shall not form part of the operative provisions of this agreement and shall be ignored in construing the same. 1.7 References to recitals, clauses or schedules are to recitals to, clauses of and schedules to this agreement. The recitals and schedules form part of the operative provisions of this Agreement and references to this Agreement shall, unless the context otherwise requires, include references to the recitals and the schedules. - 4 - 2. SALE AND PURCHASE 2.1 Upon the terms and subject to the conditions of this Agreement, (i) the Vendors sell to and PRG purchases the numbers of FA Shares and the number of AI Shares of which each of the Vendors is the owner as set out in Annex 1 hereto and (ii) the Vendors sell and the PRG France Shareholders purchase the number of FA Shares and the number of AI Shares of which each of the Vendors is the owner as set out in Annex 1 hereto, in each case, with effect from 1 October 1997 free from any Encumbrances and together with all accrued benefits and rights attaching thereto and all dividends declared after 30 June 1997 in respect of the such shares. 2.2 The Vendors represent, warrant, covenant and undertake with the Purchaser (so as to bind each such Vendor and the Vendor's personal representatives, successors and assigns) as follows: (a) that each Vendor has good title to and the right to sell to Purchaser the number of FA Shares and / or AI Shares, as the case may be, that is set out in Annex 1; (b) that each Vendor is selling their FA Shares and/or their AI Shares, as the case may be, together with all such rights now or hereafter attaching thereto including the right to all dividends and other distributions (if any) declared, made or paid after 30 June 1997, free from any Encumbrances; (c) as set forth in Annex 2 hereto. 2.3 (a) The price for the sale to and purchase by PRG is paid by the delivery to the Vendors of 110,911 Stock in the proportions set in Annex 1; (b) The price for the sale to and purchase by the Agent is US $ 6,931,177 in the proportions set out in Annex 1. 2.4 The Vendors hereby unconditionally release FA and the Subsidiaries and the Dormant Companies from all and any claims they may have against the FA and the Subsidiaries and the Dormant Companies. 3. COMPLETION 3.1 On Completion the Vendors have delivered to or made available to the Purchaser or the Purchaser has delivered or made available to the Vendors: (a) the shares transfer forms relating to all the FA Shares and AI Shares sold by the Vendors duly signed and completed in favour of PRG and the PRG France Shareholders as the case may be; (b) written confirmation from PRG's transfer agent that stock certificates evidencing the 110,911 of Stock, have been issued in the names of the Vendors; (c) bankers drafts for the aggregate amount of US $ 6,931,177 in the amounts and payable to the Vendors as set out in Annex 1 hereto. - 5 - 4. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendors as set out in Annex 3 of this Agreement. 5. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire 49 of the FA Shares and 606 of the AI Shares with the intention of immediately transferring them to the Agent to be held by PRG France SA on its formation. 6. TRANSFER BY THE VENDORS The Vendors may not substitute any third party for themselves in any way whatsoever in respect of the performance of their obligations hereunder. - 6 - 7. SUCCESSORS AND ASSIGNS OF THE VENDORS The obligations set out in this Agreement shall bind the inheritors, successors and assigns of the Vendors who shall be jointly and severally and indivisibly bound in respect of the performance of the obligations hereunder. 8. WAIVER The non-exercise by the Purchaser or the Vendors of any of their respective rights pursuant to this Agreement shall not in any way whatsoever be construed as a waiver of that right and shall not affect in any way whatsoever the right of such party to exercise such right. No waiver of any representation or contractual or legal warranty will be effective without a written and signed declaration of the person giving the waiver notifying the other party of its waiver. 9. SEVERABILITY OF CLAUSES In the event that any of the clauses hereof becomes void, unenforceable, invalid, illegal or inapplicable, this shall not jeopardise the validity, legality or applicability of the other provisions of this Agreement and shall not release the Vendors from the performance of this Agreement. 10. RESTRICTIONS 10.1 During the period of five years from the Completion Date each of the Vendors shall not (except with the prior consent in writing of PRG) be engaged, associated, implicated or interested whether solely or jointly with any other person, and whether directly or indirectly, in whatever capacity, within France in any activities competitive with those carried out by the Alma Group as described in Recital (C) above. Each of the Vendors shall not during this same five year period take any interest direct or indirect (with the exception of interests not exceeding 5% of a company whose shares are quoted on a stock exchange) in company or group carrying on within France, activities competitive with those carried - 7 - on by the Alma Group as described in Recital (C) above. 10.2 During the period of five years from the Completion Date each of the Vendors shall not (except with the prior consent in writing of PRG) be engaged, associated, implicated or interested whether solely or jointly with any other person, and whether directly or indirectly, in whatever capacity, within France, the United States of America and countries in the world where PRG Group presently carries on activities in any activities competitive with those carried out by the PRG Group as at the Completion Date. The Vendors shall not during this same five year period take any interest direct or indirect (with the exception of interests not exceeding 5% of a company whose shares are quoted on a Stock Exchange) in companies or groups carrying on within the United States of America and countries in the world where PRG presently carries on activities. 10.3 During the same period as referred to in Article 10.1 above the Vendors undertake not to employ any persons who are or become employees, independent contractors or agents of the Alma Group, who provide substantially all their services to Alma Group, in whatever capacity, even in the case of an activity which is not competitive with that carried on by the Alma Group as described in Recital (C) above. 10.4 During the period of five years from the Completion Date, each of the Vendors will not, except with the prior written consent of PRG, directly or indirectly, on their own or on behalf of any other person, solicit or call upon or serve any client or Prospective Client (including persons associated with such client or Prospective Client) with a view to selling or providing to such client or Prospective Client any product, equipment or service, competitive with any service sold or provided or under development by Alma Group at or prior to the date hereof. 10.5 (a) In the event of the termination by AI of the Mandate of Mr Marc Eisenberg during the period of such Mandate for a reason other than (i) serious or gross misconduct (faute grave ou lourde) or (ii) violation of the terms of his non competition clause in this Agreement or in the Mandate, the period of five years referred to in clauses 10.1 to 10.5 above shall be reduced to three years in respect of Mr Marc Eisenberg; (b) In the event of the termination by AI of the Employment Contract of Mr Eric Eisenberg during the period of such Employment Contract for a reason other than (i) serious or gross misconduct (faute grave ou lourde) or (ii) violation of the terms of his non competition clause in this Agreement or in such Employment Agreement, the period of five years referred to in clauses 10.1 to 10.5 above shall be reduced to three years in respect of Mr Eric Eisenberg. 10.6 Each of the Vendors hereby covenants with the Purchaser that he will not at any time divulge to any third party whatsoever or use for his own or another's advantage any of the trade secrets or - 8 - confidential know-how or confidential financial or trading information as to customers or suppliers or in relation to the business, finances, dealings or affairs of the Company or the Subsidiaries except only (a) insofar as the Vendors may prove the same has become a matter of public knowledge (otherwise than by reason of a breach by either of them of this Clause) (b) insofar as may be required by law. 10.7 The Vendors agree that the covenants and undertakings contained in this Clause 10 are reasonable and are entered into for the purpose of protecting the goodwill of the business of Alma Group and PRG Group and that accordingly the benefit of the covenants and undertakings may be assigned by the Purchaser and its successors in title without the consent of the Vendors. 10.8 Each covenant and/or undertaking contained in this Clause 10 shall be construed as a separate covenant and/or undertaking and if one or more of the covenants and/or undertakings contained in this clause is held to be against the public interest or unlawful or in any way an unreasonable restraint of trade the remaining covenants and/or undertakings shall continue to bind the Vendors. 11. ANNOUNCEMENTS Neither the making of this Agreement nor its terms shall be disclosed by any party hereto without the prior consent of the other parties unless disclosure is required by law or the rules of any regulatory or governmental body, including the SEC. 12. BOARD POSITION PRG shall use its best efforts to place Marc Eisenberg on the board of directors of PRG, with tenure thereon subject to the Articles of Incorporation and bylaws of PRG and all applicable laws, for a term to expire not later than the annual meeting of shareholders of PRG in 2000. 13. GUARANTEE The obligations of PRG and of the PRG Shareholders hereunder shall be joint and several and PRG hereby guarantees the obligations of the PRG France Shareholders hereunder. 14. EFFECT OF COMPLETION The terms of this Agreement shall insofar as not performed at Completion and subject as specifically otherwise provided in this Agreement continue in force after and notwithstanding Completion. - 9 - 15. WAIVER, AMENDMENT 15.1 No waiver of any term, provision or condition of this Agreement shall be effective unless such waiver is evidenced in writing and signed by the waiving party. 15.2 No omission or delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or of any other right, power or privilege. The rights and remedies herein provided are cumulative with and not exclusive of any rights or remedies provided by law. 15.3 No variation to this Agreement shall be effective unless made in writing and signed by all the parties. 16. FURTHER ASSURANCES At any time after Completion the Vendors shall at their own expense execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in the Purchaser the full legal and beneficial title to the Shares and the AI Shares and giving to the Purchaser the full benefit of this agreement. 17. NOTICES Save as specifically otherwise provided in this Agreement any notice, demand or other communication to be served under this Agreement may be served upon any party hereto only by posting by first class post or sending the same by an international recognised courier service which guarantees at least second business day delivery or sending the same by facsimile transmission to the party to be served at its address given below, or facsimile number given below or at such other address or number in France on the United States as he or it may from time to time notify in writing to the other parties hereto: - 10 - If to the Vendors: Mr Marc Eisenberg 14, rue Margueritte 75017 Paris in either case, with a copy to: Wilinski et Scotto 19, rue Marbeuf 75008 Paris Attention: Serge Wilinski Telefax: 01 53 57 97 98 If to the Purchaser: The Profit Recovery Group International, Inc. 2300 Windy Ridge Parkway Suite 100 North Atlanta, Georgia 30339-8426 Attention: Clinton McKellar, Jr, Senior Vice President and General Counsel Telefax: (770) 661-3034 with a copy to: Ashurst Morris Crisp 22, rue de Marignan 75008 Paris Attention: Christopher Crosthwaite, Thomas Forschbach Telefax: 01 53 53 53 54 or at such other address as any party hereto notifies the other parties hereof in writing. The parties hereto agree that notices or other communications that are sent in accordance herewith (i) by personal delivery or telefax, will be deemed received on the day sent or on the first business day thereafter if not sent on a business day, (ii) by [courier delivery,] will be deemed received on the second business day immediately following the date sent, and (iii) by certified mail, will be deemed received [seven (7)] business days immediately following the date sent. For purposes of this Agreement, a "BUSINESS DAY" is a day on which PRG and FA or AI is open for business and shall not include a Saturday or Sunday or legal holiday in France or the United States. Notwithstanding anything to the contrary in this Agreement, no action shall be required of the parties hereto except on a business day and in the event an action is required on a day which is not a business day, such action shall be required to be performed on the next succeeding day which is a business day. - 11 - 18. COUNTERPARTS This Agreement may be executed in any number of counterparts and by the several parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all the counterparts shall together constitute one and the same instrument. 19. GOVERNING LAW AND RULING VERSION 19.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 19.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be English. - 12 - MADE AND SIGNED IN EXAMPLES AT BROADWALK HOUSE, 5 APPOLD STREET, LONDON EC2A 2HA, ENGLAND, ON THE FIRST ABOVE DATE WRITTEN THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. By: /s/ Clinton McKellar, Jr. ---------------------------- Mr. Clinton McKellar, Jr. Senior Vice President and General Counsel MR. CLINTON MCKELLAR, JR., AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE SA INFORMATION By: /s/ Clinton McKellar, Jr. ---------------------------- Clinton McKellar, Jr. By: /s/ Mark Eisenberg ---------------------------- Mark Eisenberg By: /s/ Eric Eisenberg ---------------------------- Eric Eisenberg LIST OF SCHEDULES AND/OR ANNEXES Annex 1 Schedule of Shares Sold Annex 2 Warranties of Vendor Annex 3 PRG Warranties EX-2 7 EXHIBIT 2.5 SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) BANQUE INTERNATIONALE A LUXEMBOURG S.A. --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Financiere Alma SA and Alma Intervention SA --------------- THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr. acting as Agent (mandataire) in the name and on behalf of PRG France SA a French societe anonyme in the process of formation at the date hereof ("AGENT") (which expression shall on formation of PRG France SA mean PRG France SA), PRG Agent and PRG France SA being called together the "PURCHASER"WHICH EXPRESSION INCLUDES EACH OF ANY OF THEM; (2) BANQUE INTERNATIONALE A LUXEMBOURG S.A. ("VENDOR"). THE PARTIES AGREE AS FOLLOWS: 1. SALE AND PURCHASE 1.1 The Vendor sells to PRG and PRG purchases from the Vendor (i) the number of shares in Financiere Alma SA ("FA") and the number of shares in Alma Intervention SA ("AI") of which the Vendor is the owner as set out in Section 1 of ANNEX 1, and (ii) the Vendor sells and the Agent purchases the number of shares in FA and the number of shares in AI of which the Vendor is the owner as set out in Section 2 of ANNEX 1, in each case with effect from 1 October 1997 free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in FA (collectively, the "FA SHARES") and all such shares in AI (collectively the "AI SHARES"). As at date hereof the Vendor delivers to the Purchaser the shares transfer forms relating to all the FA Shares and AI Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser and the Agent, as appropriate. 1.2 The Vendor hereby represents, warrants, covenants, undertakes and where indicated acknowledges with the Purchaser (so as to bind it, its personal representatives, successors and assigns) as follows: - 2 - 1.2.1 that Vendor has the right to dispose of the FA Shares and the AI Shares which it sells to Purchaser; 1.2.2 that Vendor is disposing of the FA Shares and AI Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 1.2.3 as set out in ANNEX 2 to this Agreement; 1.2.4 that Vendor hereby unconditionally remise, release and forever discharges FA, AI, and all subsidiaries and affiliates of FA and AI, the Purchasers and all subsidiaries and affiliates of PRG, and all officers and directors of any and all of the foregoing entities (collectively the "RELEASED PARTIES") from all and any claims whatsoever Vendor may have against any and all of the Released Parties; 1.2.5 that Vendor hereby waives and releases any and all right, title and interest of any nature whatsoever in FA, AI or any of their subsidiaries and affiliates, or the business, assests or profits of same arising out of, resulting from or relating to any agreement, oral or written, by law or otherwise, including but not limited to any investment agreement, loan agreement, shareholders' agreement or the like; and 1.2.6 that Vendor acknowledges that Mr Marc Eisenberg has made available all information concerning the purchase and sale by the Purchaser of 100% of all the shares in FA and AI. 1.3 The price for the FA Shares and the AI Shares sold by the Vendor to PRG pursuant to this Agreement is paid by PRG by the delivery at the date hereof and in accordance with this clause 1.3 of 421 138 shares of no par value common stock of PRG (the "STOCK") subject to the restrictions set forth in ANNEX 2 and subject further to the condition that such Stock is not delivered to the Vendor and is immediately pledged and delivered to the Interim Escrow Agent Arnall Golden & Gregory, LLP in Atlanta, Georgia, United States of America, pursuant to the Indemnity Escrow and Stock Pledge Agreement, referred to in clause 1.5 below, which condition is the fundamental condition on which the Purchaser has agreed to acquire all FA and AI Shares, including the FA and AI Shares purchased pursuant to this Agreement. 1.4 The price for the FA Shares and AI Shares sold by the Vendor to the Agent is US $ 10 460 178,63 paid at the date hereof by way of bankers draft. - 3 - 1.5 In accordance with clause 1.3 above, concurrently with the execution of this Agreement, the Vendor has executed and delivered that certain Indemnity and Escrow Agreement (the "ESCROW AGREEMENT") among PRG, the Agent, the Vendor, Marc Eisenberg, Eric Eisenberg and Arnall Golden & Gregory, LLP of Atlanta, Georgia, United States of America, as Escrow Agent, and has deposited with Escrow Agent (together with appropriate share transfer forms), all of the PRG Stock free and clear from any Encumbrances. The Vendor warrants, covenants and undertakes with Purchaser and Escrow Agent that it has all capacity and authority to so execute this Agreement and the Escrow Agreement, and deposit and pledge the PRG Stock pursuant thereto. 2. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendor as set out in ANNEX 3 of this Agreement. 3. FURTHER ASSURANCES At any time after the date hereof the Vendor shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or the Agent with the full legal and beneficial title to the FA Shares and the AI Shares referred to in ANNEX 1 and giving to the Purchaser the full benefit of this Agreement and the Escrow Agreement. 4. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. 5. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire the FA Shares and the AI Shares in Section 1 of ANNEX 1 with the intention of immediately transferring them to the Agent on behalf of PRG France SA in the process of being formed. - 4 - 6. GOVERING LAW AND RULING VERSION 6.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 6.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. IN WITNESS WHEREOF, the parties hereto have executed this Agreement, at Broadwalk House, 5 Appold Street, London EC2A 2HA, England, as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. By Mr Clinton McKellar, Jr, Title: Senior Vice President and General Counsel /s/ Clinton McKellar, Jr. - -------------------------------- MR CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION BANQUE INTERNATIONALE A LUXEMBOURG SA By: /s/ Jean Bodoni __________________________ Title:Directeur - 5 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 Schedule of Shares Sold Annex 2 Warranties of Vendor Annex 3 Warranties by PRG EX-2 8 EXHIBIT 2.6 SHARE PURCHASE AGREEMENT Dated 7 October 1997 (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. (2) THE SHAREHOLDERS IN THE PROCESS OF CONSTITUTING PRG FRANCE SA - and - (3) BANQUE INTERNATIONALE A LUXEMBOURG S.A. --------------- SHARE PURCHASE AGREEMENT for the acquisition of share capital of Alma Intervention SA --------------- THIS AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr. acting as Agent (mandataire) in the name and on behalf of PRG France SA a French societe anonyme in the process of formation at the date hereof ("AGENT")(which expression shall on formation of PRG France SA mean PRG France SA), PRG Agent and PRG France SA which expression includes each or any of them being called together the "PURCHASER"); (2) BANQUE INTERNATIONALE A LUXEMBOURG S.A. ("VENDOR"). IN CONSIDERATION OF THE MUTUAL REPRESENTATIONS, WARRANTIES AND COVENANTS HEREIN CONTAINED, THE PARTIES AGREE AS FOLLOWS: 1. SALE AND PURCHASE 1.1 The Vendor sells to PRG and PRG purchases from the Vendor (i) the number of shares in Alma Intervention SA ("AI") of which the Vendor is the owner as set out in Section 1 of ANNEX 1, and (ii) the Vendor sells and the Agent purchases the number of shares in AI of which the Vendor is the owner as set out in Section 2 of ANNEX 1, in each case with effect from 1 October 1997 free from any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right (the "ENCUMBRANCES"), and together with all accrued benefits and rights attaching thereto and all dividends declared after the 30 June 1997 in respect of the all such shares in AI (collectively the "AI SHARES"). As at date hereof the Vendor delivers to the Purchaser the shares transfer forms relating to all the AI Shares referred to in ANNEX 1 duly signed and completed in favour of the Purchaser and the Agent, as appropriate. 1.2 The Vendor hereby represents, warrants, covenants and undertakes with the Purchaser (so as to bind it, its personal representatives, successors and assigns) as follows: 1.2.1 that Vendor has the right to dispose of the AI Shares which it sells to Purchaser; - 2 - 1.2.2 that Vendor is disposing of the AI Shares free from any Encumbrances together with all such rights now or hereafter attaching thereto, including the right to all dividends and other distributions (if any) declared, after 30 June 1997; 1.2.3 as set out in ANNEX 2 to this Agreement; 1.2.4 that Vendor hereby unconditionally remise, release and forever discharges Financiere Alma SA ("FA"), AI, and all subsidiaries and affiliates of FA and AI, the Purchasers and all subsidiaries and affiliates of PRG, and all officers and directors of any and all of the foregoing entities (collectively the "RELEASED PARTIES") from all and any claims whatsoever Vendor may have against any and all of the Released Parties; 1.2.5 that Vendor hereby waives and releases any and all right, title and interest of any nature whatsoever in FA, AI or any of their subsidiaries and affiliates, or the business, assests or profits of same arising out of, resulting from or relating to any agreement, oral or written, by law or otherwise, including but not limited to any investment agreement, loan agreement, shareholders' agreement or the like;and 1.2.6 that Vendor acknowledges that Mr Marc Eisenberg has made available all information concerning the purchase and sale by the Purchaser of 100% of all the shares in FA and AI. 1.3 The price for the AI Shares sold by the Vendor to PRG pursuant to this Agreement shall be paid by PRG by the delivery of 125,189 shares of no par value common stock of PRG (the "STOCK"). The Vendor acknowledges and agrees the the Stock is subject to the restrictions set forth on ANNEX 2 to this Agreement. 1.4 The price for the AI Shares sold by the Vendor to Agent is US $ 3,252,799.04 paid at the date hereof by way of bankers draft. 1.5 The Vendor warrants, covenants and undertakes with that it has all capacity and authority to so execute this Agreement and to perform its obligations hereunder. - 3 - 2. WARRANTIES BY PRG PRG hereby represents warrants, covenants and undertakes to the Vendor as set out in ANNEX 3 of this Agreement. 3. FURTHER ASSURANCES At any time after the date hereof the Vendor shall without charge to the Purchaser execute all such documents and do such acts and things as the Purchaser may reasonably require for the purpose of vesting in PRG and/or the Agent with the full legal and beneficial title to the AI Shares referred to in ANNEX 1 and giving to the Purchaser the full benefit of this Agreement and the Escrow Agreement. 4. GUARANTEE The obligations of PRG and of the Agent hereunder shall be joint and several and PRG hereby guarantees the obligations of the Agent hereunder. 5. BENEFIT OF THE AGREEMENT For the purposes of Article 223 B of the General Taxation Code (Code General des Impots) it is expressly agreed that PRG will acquire the AI Shares in Section 1 of Annex 1 with the intention of immediately transferring them to the Agent on behalf of PRG France SA in the process of being formed. 6. GOVERING LAW AND RULING VERSION 6.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 6.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be in English. - 4 - IN WITNESS WHEREOF, the parties hereto have executed this Agreement at Broadwalk House, 5 Appold Street, London EC2A 2HA, as of the date first above written. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. /s/ Clinton McKellar, Jr. - -------------------------------- By: Clinton McKellar, Jr. Title: Senior Vice President and General Counsel /s/ Clinton McKellar, Jr. - -------------------------------- MR CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE S.A. IN FORMATION BANQUE INTERNATIONALE A LUXEMBOURG SA By:/s/ Jean Bodoni - -------------------------------- Title: Directeur - 5 - LIST OF SCHEDULES AND/OR ANNEXES Annex 1 Schedule of Shares Sold Annex 2 Warranties of Vendor Annex 3 Warranties by PRG EX-2 9 EXHIBIT 2.7 WARRANTY AGREEMENT WARRANTY AGREEMENT THIS WARRANTY AGREEMENT is made on 7 October 1997. BETWEEN: (1) THE PROFIT RECOVERY GROUP INTERNATIONAL, INC, a Georgia corporation ("PRG"), Clinton McKellar, Jr, acting as Agent (mandataire) in the name and on behalf of PRG France SA, a French corporation in the process of formation ("AGENT") (which expression shall on formation of PRG France SA mean PRG France SA), PRG France SA ("PRG FRANCE SHAREHOLDER"), PRG Agent and PRG France SA being called together the "PURCHASER" which expression includes each or any of them; (2) MARC EISENBERG of 14, rue Margueritte, 75017 Paris and ERIC EISENBERG of 4, rue Juliette Lambert, 75017 Paris (together the "PRINCIPALS"). RECITALS: (A) PRG is in the business of auditing accounts payable, paid bill files, promotional and demonstrator agreements, personal property, real estate, sales and use tax and other taxes, common area maintenance charges, telephone and other utilities, sales promotion, advertising and cosmetic wage/commission agreements of its clients, to identify and document for subsequent charge back or credit over-payments and/or under-deductions and rendering management consulting services associated with such activities. (B) Alma Group (as defined below) is in the business of providing management consulting services primarily on a success fee basis, involving research and recovery of various French indirect taxes (e.g. fiscal taxes, foncier taxes and VAT taxes) and social charges; providing general expense reduction in various areas including building services and surveillance; assisting its clients in obtaining grants or subsidies; and operating buying clubs for small business. (C) The Purchaser has today purchased for US $ 24,601,758 in cash and US $ 858,827 in Stock of PRG all the shares of Financiere Alma SA ("FA") and 39.42 per cent of all the shares of Alma Intervention SA ("AI"), the remaining shares of AI being owned by FA. Such purchases have been made persuant to the various sale agreements made today between the Purchaser and respectively (1) Marc Eisenberg and Eric Eisenberg, (2) Epargne Capitalisation Intermediaire and Epargne Developpement, (3) Sophie Davet, (4) the individuals who are employees of AI and (5) Banque Internationale a Luxembourg. The Purchaser has also today agreed to purchase from certain other employees of AI their 206 shares in AI to be paid as to US $ 398,244 in cash and as to 13 900 in Stock of PRG. Copies of all such agreements are attached hereto. - 1 - IT IS THEREFORE AGREED AS FOLLOWS: 1. DEFINITIONS 1.1 The following words and expressions and abbreviations shall, unless the context otherwise requires, have the following meanings in this Agreement: "ALL THE VENDORS" means all the vendors persuant to All the Share Sale Agreements; "ALL THE SHARE SALE AGREEMENTS" means all the share sale agreements referred to in Recital (C) above; "AI" means Alma Intervention SA registered at Evreux under number B 339 602 195; "AI SHARES" means all the shares in the capital of AI as set out in Annex 1; "ALMA GROUP" or the "COMPANY" means FA, and the Subsidiaries, all of them or each of them as the context admits; "ACCOUNTS 1996" means the audited consolidated financial statements of FA and Subsidiaries, comprising the consolidated balance sheet and related consolidated statements of earnings, shareholders' equity and cash flows, prepared in accordance with US GAAP, as of and for the year ended December 31, 1996 attached hereto at Annex 3; "ACCOUNTS 1995" means the audited consolidated financial statements of FA and Subsidiaries, comprising the consolidated balance sheet and related consolidated statements of earnings, shareholders' equity and cash flows, prepared in accordance with US GAAP, as of and for the year ended December 31, 1995 attached hereto at Annex 4; "JUNE ACCOUNTS" means the audited consolidated financial statements of FA and Subsidiaries, comprising the consolidated balance sheet and related consolidated statements of earnings, shareholders' equity and cash flows, prepared in accordance with US GAAP, as of and for the six-month period ended June 30, 1997 attached hereto at Annex 5; "CHANGE OF CONTROL" means the acquisition, directly or indirectly, by any person or entity other than a current shareholder of PRG, of 35% or more of the voting power of PRG. For the purposes of this paragraph, "voting power" of PRG means the total number of votes which may be cast by the holders of the total number of outstanding shares of stock of any class or classes of PRG in any election of directors of PRG; - 2 - "CLAIM" means any claim asserted by Purchaser against the Principals pursuant to this Agreement and the date of any Claim shall be the first date that either of the Principals is first notified in writing of such Claim; "CLAIM AMOUNT" means the amount of any Claim before reduction for any applicable Deductible; "CLAIMS FOR TAXES SUR LES SALAIRES ET ORGANIC" means the list of specific claims filed by AI with the appropriate tax authorities on behalf of AI's customers prior to the Completion Date as set out in Annex 7 hereto; "COMPANY" means FA and the Subsidiaries, all of them or each of them as the context admits; "COMPLETION" means the date hereof; "COMPLETION DATE" means the date hereof; "DEDUCTIBLE" means with respect to any Claim, in respect of which a Deductible applies, US $ 400,000, (i) increased by the sum of (a) the amount by which the cumulative amounts actually collected at the end of a financial year with respect to the Receivables at Completion exceeds the amount of the Net Receivables and (b) the amount by which any specific reserve established by Alma Group for a particular litigation as reflected in the June Accounts to the extent that such reserve remained in place at Completion exceeds the liability incurred by Alma Group as a result of reduction of such litigation reserve made in the financial statements of Alma Group prepared under US GAAP as determined by the Conseil de Surveillance of AI at the end of a financial year and (ii) reduced (but not below zero) by the aggregate Deductibles for all previous Claims. In no event shall a Deductible exceed the Claim to which it relates; "DISCLOSURES" means the matters set out in the Warranty Schedules referred to below; "DORMANT COMPANIES" means Almatel SARL, Alma Sud SARL and Cabinet Brossard SARL; "ENCUMBRANCE" means any mortgage, charge, pledge, lien, security interest or other third party right or interest, or option or restriction of any nature over or in respect of the relevant asset, security or right; "ESCROW AGENT" means Arnall Golden & Gregory, LLP; "ESCROW STOCK" means the Stock pledged and deposited with the Escrow Agent persuant to the Indemnity Escrow and Stock Pledge Agreement; "FA" means Financiere Alma SA registered at Evreux under number B 393 066 055; - 3 - "FA SHARES" means all the shares in the capital of FA as set out in Annex 2; "FINANCIAL STATEMENTS" means the Accounts 1995 and the Accounts 1996; "FRENCH GAAP" means French Generally Accepted Accounting Principles; "INDEMNITY ESCROW AND STOCK PLEDGE AGREEMENT" means an agreement to be entered into on Completion between the Purchaser, the Escrow Agent and the Principals and Banque Internationale a Luxembourg in the form of Annex 8 hereto; "NACC SA" means Negociation Achat Creances Contentieuses SA; "NET CLAIM AMOUNT" means the Claim Amount, less any applicable Deductible; "NET RECEIVABLES" means the Receivables at Completion less any allowance for doubtful receivables at Completion (excluding any allowance for doubtful receivables for claims relating to "Taxe sur les salaires et organic"); "OPQCM" means Office Professionnel de Qualification des Conseils en Management of 6, rue Louis Pasteur, BP 124, 92106 Boulogne Billancourt; "PRG GROUP" means PRG and its subsidiaries as the same may exist from time to time; "THE PRINCIPALS" means Mr Marc Eisenberg of 14, rue Margueritte, 75017 Paris and Mr. Eric Eisenberg of 4, rue Juliette Lambert, 75017 Paris; "PROPERTIES" means the properties described in the Warranty Agreement, or any part or parts thereof and "PROPERTY" means any of the Properties; "RECEIVABLES AT COMPLETION" means the gross trade and other receivables (excluding receivables for claims relating to "Taxe sur les salaires et organic", of FA, AI and the Subsidiaries as at the Completion Date as attached hereto at Annex 9; "REORGANISATION" means the reorganisation of the Alma Group to be effected by the Vendors and the Company and the Subsidiaries, described in Annex 10 hereof; "REORGANISATION POST COMPLETION" means the actions to be taken after Completion necessary to complete the Reorganisation including completion of the Reorganisation referred to in Annex 10 hereof; "STOCK" means shares of the common stock of PRG of no par value per share to be held persuant to the Indemnity Escrow and Stock Pledge Agreement; "SUBSIDIARY" or "SUBSIDIARIES" means the subsidiaries of FA, details of which are set out in schedule 3, all of them or each of them as the context admits being AI, STEP SA, Club Affaires SA, Meridian Club France SARL, B & F & Associes SARL; - 4 - "UNDERLYING ACCOUNTS" means the Financial Statements excluding any adjustments necessary to convert the Financial Statements from French GAAP to US GAAP which US GAAP adjustments are attached thereto attached hereto at Annex 6. 2. REPRESENTATIONS AND WARRANTIES The Puchaser has only agreed to purchase the FA Shares and the AI Shares sold or to be sold persuant to All the Share Sale Agreements on the basis of the undertakings representations and warranties contained in this Warranty Agreement (the "WARRANTIES") by the Principals, and the entering into of the Indemnity Escrow and Stock Pledge Agreement. The Principals therefore represent and warrant that the Warranties (together with the Disclosures) are true and accurate at the date hereof. Where Warranties are qualified by the words "To the best of the Principals knowledge" or any other similar expression, this qualification will be valid against the Purchaser from such time as the Principals are able to show that they checked reasonably the accuracy of the representations and warranties so qualified. 2.1 Any information supplied by or on behalf of the Company to the Principals or their agents or accountants, lawyers or other advisers in connection with the Warranties, the Disclosures or otherwise in relation to the business and affairs of the Company shall not constitute a representation or warranty or guarantee to the Principals as to the accuracy thereof by the Company and the Principals hereby waive any and all claims which they might otherwise have against the Company or any of their respective agents or employees in respect thereof. 2.2 Each of the Warranties shall be construed as an independent and separate representation, warranty, covenant or undertaking (as the case may be) and (save as expressly provided to the contrary) shall not be limited by the terms of any of the other Warranties or by any other term of this Warranty Agreement. 2.3 No information relating to the company of which the purchaser has knowledge (actual or constructive) other than that contained in or referred to in this warranty agreement and/or included in the disclosures and no investigation by or on behalf of the purchaser shall prejudice any claim by the purchaser under the warranties or operate to reduce any amount recoverable hereunder. The principals shall give to the purchaser and its representatives (so long as either one of them is in a managerial position with the alma group enabling them to do so) after completion all such information and documentation relating to the company as the purchaser shall reasonably require to enable it to satisfy itself as to the accuracy and observance of the warranties. Where in the warranties, the word "material" qualifies any event, this qualification will mean that such event would have a significant adverse effect on the financial position the assets, or business (patrimoine) the functioning, the structure or prospects of the alma group. On each occasion on which any of the warranties contains a qualification or exclusion, such qualification and exclusion is set out in a warranty schedule to this warranty agreement with the same reference number as the representations and warranties concerned. Only those facts or events which are expressly referred to in this warranty agreement or in the warranty schedules hereto shall be admitted as limiting the obligations of the principals under this warranty agreement and then only to the extent indicated. - 5 - 3. WARRANTIES BY THE PRINCIPALS 3.1 The principals hereby represent warrant covenant and undertake to the purchaser as set out in this clause 3. 3.2 AUTHORITY AND POWER All the vendors have all the powers, rights, authorities and the capacity required to transfer the FA shares and the AI shares to the purchaser and in particular, to initial, execute and perform all the share sale agreements as well as to carry out all other acts relating thereto or envisaged therein, which constitute firm and validly binding obligations between the parties thereto. None of all the vendors is the subject of any bankruptcy or any proceedings instituted within the context of the prevention or treatment of business difficulties or a decision to wind-up, and there is no reason suggesting that any of all the vendors will be the subject of such proceedings or such a decision. None of all the vendors is within a doubtful period (periode suspecte) in the sense of the law relating to collective procedure (procedure collective). 3.3 SALE OF SHARES The FA Shares represent 100% of the share capital and voting rights in FA and the number of FA Shares owned by each owner of FA Shares are set out in Annex 3.3 (a). The AI Shares represent 100% of the share capital and voting rights in AI and the beneficial and legal owners of the AI Shares and the number of AI Shares owned by each such owner are set out in Annex 3.3 (b). All the Vendors being the owners of the FA Shares and the owners of the AI Shares and have full rights of disposal and enjoyment and can sell such shares to Purchaser pursuant to All Share Sale Agreements without any restriction. The various operations necessary for the successful completion of the sale of the FA Shares and the AI Shares by All the Sale Agreements have been carried out in accordance with the regulations in force and have validly transferred title to the FA Shares and the AI Shares to the Purchaser at Completion. The transfer of title to the FA Shares and the AI Shares to the Purchaser persuant to All the Sale Agreements and does not breach and transfer of titles to the FA Shares and the AI Shares and will not breach, any of FA or AI's or All the Vendors contractual or other obligations and is not contrary to any laws or regulations applicable to FA or AI or All the Vendors - 6 - 3.4 CONSTITUTION AND BUSINESS 3.4.1 The company has been duly incorporated in accordance with the laws and regulations in force at the date of incorporation and continues to exist legitimately. Its statuts and the functioning of the corporate bodies within the company are in accordance with the laws and regulations in force. The extraits k-bis (french company searches) and the statuts of the company are attached at Warranty Schedule 3.4.1 And within 7 days will be accurate, complete and fully up to date. 3.4.2 The share capital of the company is fully paid up except for the share capital of step sa as indicated in Warranty Schedule 3.4.2. 3.4.3 The list of directors and statutory auditors of the company is set out in Warranty Schedule 3.4.1 And within 7 days will be accurate and fully up to date. 3.4.4 All decisions taken and undertakings given by the corporate bodies within the company and/or its directors and managers were validly taken, duly authorised or ratified by the competent corporate bodies in accordance with law and regulations and with the statuts of the company and, where necessary, validly recorded in the company registers, in particular any agreements referred to in article 101 and following of the law of 24 july 1966 were duly authorised; 3.4.5 THe minute books and the registers and records of attendance of the company's corporate bodies comply with the regulations in force and all the signatures and initials relating to the decisions of the company's corporate bodies have been placed thereon. These registers are up to date and faithfully reflect the operations referred to therein. 3.4.6 All of the necessary formalities of publicity arising from the decisions taken by the company's corporate bodies have been observed, by way of advertisements placed in the legal press and at the register of commerce in accordance with the applicable laws and regulations. 3.4.7 All of the accounting books, documents, registers and files required by the applicable regulations have been kept by the company, and are in its possession, and contain information which is accurate, up to date and has been established in accordance with applicable laws and regulations. All agreements and other documents proving title to the company's assets and the originals of all the contracts in force entered into by the company which should be in its possession are actually in its possession. 3.4.8 The businesses of the company do not require the obtaining of any permits, consents or authorisations other than in the case of AI membership of OPQCM. AI is a member in goodstanding of opqcm.. Morever, the principals warrant represent and undertake to the purchaser that at the date hereof the principal activity of AI is the lawful business of management consultancy in the field of finance and management ("Finance et Gestion"). In particular the principal activity - 7 - of AI is not that of giving legal advice or consultations ("Des Consultations Juridiques") or drafting or issuing private acts ("actes sous seing prive") and in any event any activities of AI which could be considered as those of giving legal advice or consultations relate directly to such principal activity and any activities of AI which could consist of drafting or issuing private acts would constitute a necessary accessory of such principal activity and as a member of opqcm AI lawfully carries on its activities within the scope of the law n(degree) 71 113089, 31 december 1971 as modified by the law n(degree) 90 12599, 31 december 1990. In the context of the debate about giving legal advice or consultations or drafting or issuing private acts and of the conflict which has been going on in france for several years between lawyers and the other professions who give legal advice or consultations or draft private acts, several disputes have taken place between lawyers and audit or accounting firms or management consultancy firms, of the kind similar to ai, and the press have widely reported some of these disputes. The purchaser acknowledges that the principals have advised them that AI has received since 1993 claims or inquires coming from lawyers or professional organisations of lawyers and in particular, from the "ordres des avocats" of paris and of hauts-de seine, from the "institut des avocats et conseils specialises en droit fiscal" and from fidal-kpmg. The principals warrant, represent and undertake to the purchaser (i) That AI answered these claims or inquiries by giving all appropriate explanations and justifications and that as at the date hereof they have never given rise to any legal procedure or action and (ii) that all material correspondence in respect of such claims and inquiries is contained in warranty schedule 3.4.8 And (iii) these claims and inquiries are the only claims or inquiries of material significance, and (iv) except as disclosed in warranty schedule 3.4.8 There have been no claims or inquiries of any nature since 1 January 1997. 3.4.9 The company has not made and is not making any call for public investment (appel public a l'epargne). 3.4.10 No resolution to dissolve or liquidate the company has been taken by its shareholders. No demand or declaration has been made with a view to the legal redress (redressement judiciaire) or liquidation of the company and it is not and is not likely to enter into a state of ceasing to make payments or be the subject of any collective procedure (procedure collective) or of any warning procedure (procedure d'alerte) or other similar procedure. No legal administrator has been appointed to manage all or any part of the assets or business (fonds de commerce) of the company. 3.5 REORGANISATION The vendors have completed or initiated the reorganisation of the alma group as follows: (i) the shares of the subsidiaries other than ai, not previously owned by ai, have been transferred to AI on the terms and conditions set out in warranty schedule 3.5. Ai is now therefore the legal owner of 100% of the share capital of the subsidiaries; - 8 - (ii) any special or priority rights attaching to any shares in ai have been removed with no cost including tax cost to ai; (iii) the annual shareholders meeting of alma held on 28 august 1997 has approved the principle of the absorption of FA and step SA by AI, by way of a merger. AI's works council has been consulted on the merger and has given a positive opinion thereon; (iv) all of the shares of nacc sa have been transferred by FA to Mr Marc Eisenbergfor their net value in the books of FA which has been paid by Mr Marc Eisenberg to FA and any guarantees and security given by the company in respect of NACC SA has been released at no cost to the company. The principals represent that all of the costs for the company arising out of resulting from or relating directly to the reorganisation whether incurred before or after completion, including the mergers described in (iii) above, including the costs of statutory and special auditors (commissaires a la fusion et aux apports), the registration and publication costs, transfer taxes (droits de mutation) lawyers fees and tax cost shall not exceed $ 70,000 and that the principals will be Responsible for any such costs in excess of US $ 70,000. 3.6 SHARES 3.6.1 Each of the shares in the company gives the same rights over the profits of the company and the same voting rights at general meetings of the company as all the other shares. 3.6.2 The shares in the company comprise one class only. No preference shares exist nor more generally do any shares granting special rights or subject to special restrictions exist, whether such special rights or restrictions be in respect of the shares themselves, their holders, the duration of holding of the shares or any other matter. 3.6.3 The shares of the company have been validly issued, fully paid-up (except for the share capital of step sa), are freely transferable and negotiable and are free from any encumbrances and are not the subject of any dispute. In particular, except as specified in warranty schedule 3.4.1, The statuts of the company contain no clauses of consent, pre-emption, or any other provision of such a nature as to restrict in any manner the freely transferable and negotiable nature of the shares of the company and any such clauses or provisions have been lawfully waived or surrendered to enable the sale of the FA shares and the AI shares to the purchaser pursuant to the sale agreement and the other sale agreements to lawfully take place. 3.6.4 All of the shares or other corporate rights that the company holds in any legal person or entity are set out in warranty schedule 3.6.4 Along with the form and nationality of such legal person or entity. Such shares and corporate rights are free from any encumbrances. - 9 - The company does not possess or hold, directly or indirectly any securities or other corporate rights, other than the shareholdings in the dormant companies, any shareholding in another company, legal person or company de jure or de facto (whatsoever it may be), or other entity with or without legal personality (including societes civiles immobilieres, economic interest groups (groupements d'interet economique) or societes en participation), and nor is the company party to any agreement or shareholders' agreement, including "joint ventures", societe en participation, or agreements for the holding of shares in the place of the original owner (convention de croupier). The company does not hold the position of director, de jure or de facto, in any company or entity having legal personality or not, and will not be pursued for any liability jointly and severally and/or indefinitely. 3.6.5 The company has not issued any shares or corporate rights other than that set out in Warranty Schedule 3.6.4 And the company has no obligation, in particular legal obligations and obligations resulting from a decision of the company to issue suchshares or corporate rights, and no authorisation has been given or delegation made to the company's corporate bodies to go ahead with any modifications, even if deferred, to the share capital of the company or to issue any shares or corporate rights whatsoever, and no restriction has been Placed on voting rights attaching to the company's shares or corporate rights and nor is the placing of any such restriction in progress. 3.6.6 The company has not granted any option conferring a right to purchase, acquire, sell, exchange or subscribe for securities or loan stock and more generally, there is no shareholders' agreement or other agreement existing, as distinct from the statuts (engagement extra-statutaire) in place which affects the company and or the company's shares. 3.6.7 The up to date list of the company's shareholders, which specifies the number of shares held by each shareholder, is set out in warranty schedule 3.6.4. The dormant companies are dormant and have no liability whatsoever and their liquidation will not cause any cost (including tax cost) whatsoever exceeding in total frf 50,000 (and the principals will be responsible for any costs in excess of frf 50,000) and apart from those companies mentioned in the financial statements and in warranty schedule 3.6.4 There are no other companies or entities of whatever description in the alma group. 3.6.8 The company's shareholder accounts and the register of share movements have been kept up to date and are in accordance with the regulations in force 3.7 EFFECT OF THE SALE OF THE FA SHARES AND THE AI SHARES Except as disclosed in Warranty Schedule 3.7 the sale of the FA Shares and the AI Shares to the Purchaser persuant to: All the Sale Agreements will not, to the best of the Principals knowledge, have any effect upon the legal position of the Company nor its rights and obligations in respect of third parties and in particular will not give rise to, to the best of the Principals knowledge inter alia: (i) any breach of a legal, regulatory or statutory provision, or of any agreement, obligation or decision, whether legal or otherwise; - 10 - (ii) the challenging of any grant, premium, exemption from liability, tax relief, interest rebate loan or other benefit; (iii) any early termination of or variation to contracts, in particular contracts with clients or customers of the Company, leases, equipment and building financing agreements (contrats credit-bail), and supply agreements; (iv) the early repayment of any loan or financing granted to the Company; (v) any obligation to pay a bonus or compensation to any of the employees or directors or managers of the Company; (vi) any preferential tax or employment regime, whether or not such an action results from any consent; (vii) liability for taxes, fees or other charges other than the registration fees of 1% of value due, up to a limit of twenty thousand French francs (FRF 20,000) per sale by reason of the sale of the Shares and the AI Shares; (viii) any fee whatsoever for the removal of a guarantee, security, comfort letter or any other document of a similar nature issued as security or as support for the Company's commitments; (ix) the registration or creation of any pledge or security whatsoever over the assets of the Company; and (x) any effect or restraint or restriction on the ability of the Company to carry on its businesses and to provide its services. 3.8 FINANCIAL STATEMENTS 3.8.1 The Underlying Accounts have been drawn up in accordance with French GAAP in a manner coherent and consistent with previous financial years. 3.8.2 The Underlying Accounts and the June Accounts are consistent and genuine and give a faithful and genuine picture of the financial, contractual and commercial situation of the Company, its businesses (assets and liabilities) and the consolidated results of operations of FA and Subsidiaries at their respective dates. Except as set out in Warranty Schedule 3.15, the Underlying Accounts and the June Accounts show the whole of the liabilities and obligations of FA and its Subsidiaries, owing or due in the future, as at their respective dates. 3.8.3 No writing down period in respect of any part of the assets in the Underlying Accounts or the June Accounts is longer that the expected life span of the assets in question. No depreciation carried out by the Company is greater that the amount permitted by the tax authorities in respect of the calculation of corporation tax. - 11 - All potential risks and charges of any nature burdening or likely to burden the Company have been provided for in the Underlying Accounts and the June Accounts in accordance with the laws and regulations and French GAAP, which in the case of French GAAP have been applied consistently in previous years. All the transactions carried out by the Company have been properly recorded in its accounting books and registers and are reflected in the Underlying Accounts and the June Accounts at their respective dates. 3.8.4 Ownership of goods and assets Except as specified in Warranty Schedule 3.8.4, the Company holds the valid and incontestable right of ownership over all of the goods and assets which it uses, whether movable or immovable, tangible or intangible, whether or not included in the Financial Statements and those acquired subsequent to the respective dates of the Financial Statements. Except as specified in Warranty Schedule 3.8.4, the Company holds the title to all of the goods and assets and none of such title nor any of the goods and assets are subject to any Encumbrances or preferential rights nor has any contract or undertaking to agree to any preferential rights been entered into. Except as specified in Warranty Schedule 3.8.4, none of the goods and assets used or leased by the Company is the property of the Principals or affiliates of the Principals, or as the case may be, members of their families. The goods and assets which have become obsolete by reason of technological advances, or any other reason, have been provided for in the accounts at their real value. The Principals and the Company have not been informed of any claim allowing anybody to take an Encumbrance or preferential right over the goods and assets of the Company. 3.8.5 Except as specified in Warranty Schedule 3.8.4 (b) and in respect of salaries fees and commissions in respect of services rendered to the Company,the Company has no indebtedness or obligation whatsoever to any of All the Vendors. 3.9 INTELLECTUAL PROPERTY 3.9.1 The company is the legitimate owner of its company name, the use of which to the best of the principals knowledge is not open to any claim or objection of any sort. For the purposes of this article 3.9, the intellectual and industrial property rights means inventions, patents and patent applications, trademarks, whatever the stage of their registration, trading names, company names, designs and forms whether published or not, moulds, copyright, software, know-how and technology or other intellectual or industrial property rights (the "intellectual property rights"). 3.9.2 The Company owns or uses the Intellectual Property Rights in accordance with valid licences, the software and know-how and computer technology which it uses in its business. - 12 - 3.9.3 The Company does not need any Intellectual Property Rights other than those which are set out in Warranty Schedule 3.9.3 in order to carry out their business. 3.9.4 To the best of the Principals knowledge, the Company has not breached, in particular by way of infringement, any third party Intellectual Property Rights nor is of the Company responsible for any act of unfair competition in respect of any such rights and no claim, proceedings or action has been brought or is about to be brought the Company in relation to any of the Intellectual Property Rights set out at 3.9.3 above. 3.10 RECEIVABLE DEBTS Except as stated in the financial statements and the june accounts, the commercial and other receivable debts of the company contained in the financial statements and the june accounts, together with those contracted after the date of the financial statements and the june accounts, are valid and recoverable and have been received or, as appropriate, will be received in full for the nominal amount due, within the usual period for payment from the date of billing granted by the company. Attached as warranty schedule 3.10 Is a true, correct and complete listing of the net receivables at completion, such net receivables at completion are valid and recoverable and will be received in full for the nominal amount due, within the usual period for payment from the date of billing granted by the company. The company has not entered into any factoring agreement in respect of its receivable debts or otherwise. The purchaser acknowledges that the principals have advised the purchaser that it is the company's policy and the company's obligation (as disclosed in Warranty Schedule 3.15) To reimburse fees received from customers if the savings made by such customers following the company's involvement is subsequently challenged by any relevant authority and the client is required to refund or repay the savings. 3.11 COMMERCIAL LEASES - PROPERTIES 3.11.1 Warranty Schedule 3.11.1 contains copies of contracts in respect of all buildings occupied by the company by virtue of (i) commercial leases governed by the law of 30th september 1953 (the "Leases"), (ii) construction leases governed by the law of 31 may 1978 (the "Construction Leases"), (iii) finance lease contracts (contrats de credit-bail) governed by the law of 2nd july 1966 (the "finance leases"), (iv) business management contracts (contrats de location gerance) and (v) all other agreements for occupation, of whatever nature (together the "Property Contracts"). 3.11.2 To the best of the Principals knowledge, the Company materially complies with the provisions of the Property Contract, the Property Contracts are valid andare not likely to be cancelled or annulled except in accordance with their terms. The amount of rent in respect of each of the Property Contracts is set out in Warranty Schedule 3.11.2. - 13 - 3.11.3 As at the date of this Agreement, the Company has not been informed of any increase in the rent or charges due in respect of the Leases or the rates of interest relating to the Finance Leases. 3.11.4 The Company has given proper and lawful notice to leave and has no liability in respect of any building or premises which it leased in the past but does not now use or occupy. 3.11.5 Except as specified in Warranty Schedule 3.11.5, the Company has not granted any sub-lease or right of residency, in whole or in part, or any other right to any third party whatsoever, of the premises which are the subject of the Property Contracts. 3.11.6 The Company owns no immovable property or real estate and has no commitments in respect of any such. 3.11.7 To the best of the Principals knowledge, all the properties leased by the Company (the "PROPERTIES") are occupied in accordance with the use for which they are intended. To the best of the Principals knowledge, their construction, occupation and use by the Company is all in accordance with law and regulations, including without limitation, in the areas of planning, health and safety and the environment. The Properties are not and will not be the subject of any planning or construction order or any other order which might reduce their value. No notice is currently in force against the Company from any competent authority which gives notice of a breach of any provision of the Town-Planning Code (Code d'Urbanisme) or the Construction and Housing Code (Code de la Construction et de l'Habitation) or any other legislation or regulation relating to the Property or the use thereof, including any local and municipal regulations or any orders. None of the Properties is situated in an insanitary housing block, or is the subject of a hazard order or of any measure forbidding occupation or ordering the eviction of its occupiers. None of the Properties is situated in a ZAD (zone d'amenagement differe), ZUP (zone a urbaniser en priorite), ZAC (zone d'amenagement concerte) or other zone of land, whatever its legal nature, which is governed by a specific legal regime which derogates from the common law. All of the Properties are in a good state of repair, in a stable condition and fit for the purposes for which they are used. 3.12 MOVABLE PROPERTY NOT BELONGING TO THE COMPANIES Subject to the contents of warranty schedule 3.8.4 (B), the company does not rent any movable property with a value greater than frf 100.000, In particular, within the context of finance lease contracts (contrats de credit-bail) or contracts for long-term occupation, and the company has not entered into any other contracts of occupation granting an option to acquire the ownership of the movable property leased to the company at the end of a certain time period. None of the goods and assets referred to in warranty schedule 3.8.4 (B) has been repossessed by its owner and the company is not in breach of any contractual, statutory or other provision which would allow the owner of the goods and assets referred to above to repossess such goods and assets. - 14 - 3.13 CONTRACTS 3.13.1 The company is validly bound to all of the contracts and undertakings to which it is party or of which it has the benefit (the "Contracts"). As at the date hereof the principals are not aware that the company has breached any of its contractual obligations. Warranty Schedule 3.13.1 contains copies of the standard business service forms used by the Company. 3.13.2 To the best of the Principals knowledge, there is no event likely to (i) lead to the nullification or early termination of the Contracts, or (ii) permit a third party to such contract to demand early payment, or such third party make the Company liable in respect of the Contracts. 3.13.3 In particular, and subject to what is stated in Warranty Schedule 3.8.4 (b) and Warranty Schedule 3.13.3, the Company has not entered into nor is bound to enter into any contract or agreement: - which binds them in an unusual or abnormal manner, having regard to their normal course of business purpose; - which could make it indefinitely or severally liable; - with the Principals or the Affiliates of the Principals or with the family members of the Principals; - conferring exclusivity; or - under the terms of which the Company is obliged not to carry out certain activities or not to compete. 3.14 BANK ACCOUNTS AND SIGNATURES The operating conditions of the bank accounts opened in the name of the Company and a list of the persons authorised to use them is attached at Warranty Schedule 3.14. A list of the persons with powers of attorney and holders or users of credit cards with amounts authorised, for each member of the Alma Group is also attached at Warranty Schedule 3.14 (b). 3.15 OFF-BALANCE SHEET COMMITMENTS With the exception of those stated in the financial statements or the june accounts or Warranty Schedule 3.15 (Bank guarantees), or as disclosed in Warranty 3.18, The company has no off-balance sheet commitments. In particular subject to warranty schedule 3.15, The company has not granted any surety, signature backing a bill (aval) or guarantee or provided any letters of comfort or patronage for the carrying out of any commitments of any third parties (including those of shareholders, directors, managers or employees of the company). - 15 - 3.16 BORROWINGS Except as set out in warranty schedule 3.16, The company has no borrowings and subject to the provisions of warranty schedule 3.7, The company has not breached any of its obligations in respect of its borrowings and there is no circumstance which could lead to a failure to carry out any of its obligations in respect of such borrowings. 3.17 LITIGATION - DISPUTES The company is not involved in and to the best of the principals knowledge is not threatened with involvement in any legal, penal, administrative or arbitration proceedings, or any investigation by any professional body either as the person bringing or defending the complaint, including counter-claims, subject to what is set out in warranty schedule 3.17. Moreover, no fact exists and no event has occurred likely to give rise to any kind of proceedings or investigation whatsoever (civil, penal, administrative or arbitration) involving the company as claimant or defendant, the financial risk of which is greater than a figure of 100.000 Francs or involving directors, managers, employees or former directors or managers or employees and for which the company would be civilly or penally liable, or against or involving any person whose acts would be likely to involve the company in liability. Subject to the contents of warranty schedule 3.17 And normal client debt recovery in the course of business, the company has not itself commenced any proceedings of any nature whatsoever against an administrative body or a third party and no fact exists and no event has occurred which could serve as the basis for such proceedings. 3.18 CUSTOMERS - SUPPLIERS No contract has been entered into by the company on the one part, on its suppliers, customers or clients on the other part, other than in the normal course of business. Except for the contracts disclosed in warranty schedule 3.7 Hereto, no agreement exists which could result in any restriction whatsoever in the company business and no agreement exists which could result in the company being obliged in the future to accept conditions which are less favourable than those currently in force. The company has not received any information according to which any customer, client or supplier who contributes in a significant manner either to their profits or to their operational needs, has the intention of substantially ceasing or reducing operations with the company, either immediately or to the best of the principals knowledge in the future. The company has no distributors, agents or franchisees nor does it acts as such. - 16 - 3.19 EMPLOYEES AND SALARIES 3.19.1 Warranty Schedule 3.19.1 (A) contains copies of contracts of all of the employees or directors or managers of the company, whose annual gross salary is paid in one or more parts and in whatever form this may be (by way of salary, benefits, fees (except mandators legal benefit) or other remuneration for services supplied) exceeding 600,000 french francs for each beneficiary. This list contains the position and length of service for each of the employees, directors or managers and full details of their remuneration or benefits of whatever nature. Warranty Schedule 3.19.1 (B) includes french tax "das 2" forms of the company filed with the french tax authorities for years 1995 and 1996 all of which are true and accurate in every respect. 3.19.2 All salaries, commissions, other direct and indirect remuneration (including in particular supplementary terms) and benefits of whatever nature except for retirement bonus indemnities (indemnite de demande de retraite) and reimbursements of charges payable in cash and in kind due to the employees, directors or managers of the company of such contracts have been duly and fully paid or provided for, and are tax-deductible and any retirement bonus indemnities will be fully tax-deductible. Except as disclosed in Warranty Schedule 3.19.1 (A), no sum of any nature is due to any current or former employees or directors or managers of the company other than remuneration due but not yet payable, reimbursement of professional fees and debt or as recorded in the financial statements. No undertaking to employ a person not previously employed by the company has been given by the company. 3.19.3 None of the senior employees, directors or managers has retired or voluntary terminated or been dismissed from his functions in the company in the last two years and nor has any such executive made known his intention of resigning. The company has not granted any loans other than advances on remuneration recorded in the financial statements to the employees or the directors or managers. 3.19.4 There are no claims or actions brought against the company on behalf of any employees, directors or managers, trade unions or employees' representative bodies. There is no employee unrest or strike action. The company voluntarily applies to its employees the provisions of the collective bargaining agreement of syntecis. 3.19.5 Except in respect of consideration to be paid to them by the purchaser under the sale agreement or in respect of the remuneration arrangement contemplated for the principals in the sale agreement, no employee or director or manager will gain any benefits by reason of the completion of the sale of the shares or the AI shares. 3.20 PENSIONS All contributions due and payable by the Company in respect of pensions (whether legal or contractual) and miscellaneous social benefits (such as shareholdings and profit-sharing) and all future undertakings given by the Company in this respect have been duly paid or provided for. and are fully set out and described in Warranty Schedule 3.20, or are the minimum required by the law in France. - 17 - 3.21 COMMERCIAL AGENTS The Company has not ever had and has no Commercial Agents. 3.22 SOCIAL SECURITY AND EMPLOYMENT REGULATION 3.22.1 The company has complied with all legal and regulatory requirements relating to employment and social security law, including, without limitation, in the areas of the establishment and functioning of employee representative or trade union bodies and in the area of health and safety at work. The company has filed all the notifications required of it in the form and within such a period as is in required under the laws and regulations in force, and all the information contained in such notifications as well as all other information provided by the company was full and accurate. 3.22.2 The company has respected the instructions given by the competent authorities regarding employment law, social security law and health and safety regulations, and has obtained all necessary consents. 3.22.3 The company has paid or provided for all its contributions in respect of the various social bodies, for contingency funds (prevoyance), welfare (including but not limited to the basic, supplementary and further supplementary contingency funds (prevoyance) and pension schemes) and these contributions have been made by them in the form and within such a period as is required under the laws and regulations in force. 3.22.4 Except as disclosed in warranty schedule 3.22.4, There are no negotiations in progress, either with the employees or with the social bodies, with a view to changing the employment terms and social costs currently borne. 3.22.5 The company has informed and consulted the employee representative bodies of AI in accordance with the laws and regulations in force, regarding the sale of the FA shares and the AI shares to the purchaser. 3.22.6 Except as disclosed in Warranty Schedule 3.22.6, The company has not since 1995 been subject to investigation, supervision or redress (redressement) by any social authority. 3.23 TAX REGULATION 3.23.1 Except as disclosed in Warranty Schedule 3.23.1, The company has regularly completed in a complete and exact manner and filed in the form and within the periods required all tax, parafiscal and customs forms required by the laws and the regulations in force. 3.23.2 The company is up to date, up to the date hereof, with the payment, or has provided in the financial statements for all taxes due or to become due for all periods to the date hereof. Taxes means in this warranty agreement all payment of whatever form of a nature or effect which is fiscal, parafiscal or customs duty including without this list being exhaustive, taxe, impot, droit, contribution, cotisation, charge, prelevement including all precompte, retenue or prelevement a la source. Taxes includes all demand or redressment for tax either in principal or in interest as well as related increase or penalty. - 18 - 3.23.3 Except as provided in warranty schedule 3.23.1, The company is not now and has not previously been the subject of any enquiry or control by the tax administration and has not received any notification or demand for information or contestation on the part of the tax administration. No control nor enquiry of such a nature is envisaged. 3.23.4 No engagement sanctioned by restitution or otherwise has been contracted by the company in any manner, fiscally "social" or otherwise by virtue of or on the occasion of the receipt of any grants, subsidies or any particular regimes. The company has respected all conditions of such grants or subsidies to ensure that they have a final character. 3.23.5 The company will not lose any right or tax advantage by reason of sale of the FA shares or the AI shares (including in particular all depreciation deemed to be deferred and ordinary loss appearing in the financial statements). 3.23.6 The company has complied with its obligations relating to the periods and the form in which it must retain records release to tax authorities. 3.23.7 The company has all the necessary documents, complete and exact in order to justify the existence and the amount and the good use of all deficits, deemed deferred depreciation, tax credit, avoir fiscal or debt on the state (including in particular carry back debts) and generally all tax advantages which it has used or obtained or which it could on fulfilment of such condition, use or obtain reimbursement for. 3.23.8 The company has not entered into any form of credit-bail operation which has not complied with all fiscal formalities applicable any the payment of all taxes due. 3.24 ENVIRONMENTAL MATTERS In relation to the protection and preservation of the environment, the company and all its representatives, agents, directors, managers and employees have at all times complied with all applicable laws, regulations, codes of custom and practice and any recommendations made by the competent authorities (together the "Environmental Laws"). The activities of the Company and the installations that it uses are not and have not in the past been the cause of any pollution, and nor have they had any effect on human health or the environment. No material investment is necessary in order to avoid any liability in relation to the Environmental Laws or any breach of the Environmental Laws, or to obtain the benefits of any permits, licences, declarations or any other authorisations regarding environmental matters. The Company has not received notice of nor been informed of any actions or proceedings (procedure/instance) relating to any events or to their activities which could be directly or indirectly attributable to the Company and to the best of the Principals knowledge likely to lead to liability on their part in respect of the Environmental Laws. - 19 - 3.25 BUSINESS LIABILITY Except as specified in Warranty Schedule 3.17, No claim of any sort whatsoever exists against the company whether for loss, damage or injury caused to persons or things, as a result of the businesses carried on by and services provided by the company and neither the principals nor the company have been informed of any such action which might be brought against the company. 3.26 INSURANCE 3.26.1 A copy of the insurance policies taken out by the company or on its behalf is set out in Warranty Schedule 3.26.1. 3.26.2 The company has paid all premiums owed under such insurance policies to date. 3.26.3 The company has not breached any provision of such policies and has carried out all necessary formalities and declarations properly and in good time in accordance with the terms of the policies and of the law, and as a result is indemnified against all loss or injury which has or might be incurred or suffered. 3.26.4 There is no litigation or dispute in progress regarding any claim under such insurance policies and no event has taken place likely to lead to such a dispute or litigation. The company has not since 1995 made any claim under such insurance policies of such a nature as to hinder or hold up the continued pursuit of its normal activities, or so as to lead to a significant increase in the premiums or the excess relating to such policies. 3.26.5 The continuity and the cost of the policies set out in warranty schedule 3.26.1 Will not be affected by the sale of the FA shares or the AI shares to the purchaser. 3.27 RELATIONS WITH THE PRINCIPALS Neither the principals nor any affiliate of the principals, nor any member of the families of the principals: (a) Are except as disclosed in warranty schedule 3.8.4, The holders of any asset or right whatsoever that the company must use or have the benefit of in order to carry out its activities; (b) Except for salary or fees for their services to the company are the creditors or debtors of the company by reason of any obligation whatsoever, and more generally, except as aforesaid, do not have any present or future right to exercise any right against any of the company; (c) Have guaranteed any of the company's obligations, and nor has the company guaranteed any of the obligations of the principals, the affiliates of the principals, or any member of the families of the principals. - 20 - 3.28 EVENTS OCCURRING IN THE COMPANY SINCE 30 JUNE 1997 In respect of the period between 30 June 1997 and the Completion Date, the management of the Company has been carried out using the same methods as, and in manner consistent with the former management thereof, so as to ensure the continuity of the running of the business. Moreover, the Company has not entered into any agreement or made any decision outside the normal course of business or the reasonable and prudent management (gestion en bon pere de famille) of the Company. In particular, since the 30 June 1997: (i) except as disclosed in Warranty Schedule 3.28, no general meetings (assemblee generale) of any of the Companies have been held; (ii) there has been no change in the Company's' accounting methods and practices; (iii) except as disclosed in Warranty Schedule 3.28, no distribution has been made or decision taken in relation to a distribution of a dividend, interim dividend or other remuneration of capital. - 21 - 3.29 INTERMEDIARIES None of the negotiations relative to this warranty agreement or to the operations provided for herein could provide grounds for a claim by the principals against the company or the purchaser for any brokerage, commission, fee or other payment of a similar nature. 3.30 INFORMATION AND DOCUMENTS All information and documents in the warranty schedules hereto are authentic, true and accurate. 4. INDEMNITIES 4.1 The principals undertake, in their own names and in the names of their successors and assigns (ayants-droit), to indemnify the purchaser, or, as the purchaser shall choose, the company, against the whole of any loss as a result of: (A) Either (i) any inaccuracy, omission or breach whatsoever of any of the warranties or (ii) which results from facts or circumstances whose origin is prior to the completion date and has not been expressly disclosed to the purchaser in this warranty agreement or the warranty schedules; (B) The claims in respect of begin, alma atlantique and actor specifically identified by the list in warranty schedule 3.17 To the extent that they have not been specifically provided for in the june accounts which provisions the principals represent as being: Begin Frf 1,450,000 Alma Atlantique Frf 2,842,028; Actor - None. - 22 - (C) Any claims arising out of the conflicts or disputes or claims or enquiries referred to in clause 3.4.8Which go beyond and do not only relate to the mere fact of such conflicts or disputes existing or such claims or enquiries having been made and dealt with as indicated in clause 3.4.8; (D) Any claims against the purchaser and/or the companies by any previous or current shareholder of fa, AI or of any of the subsidiaries (other than the principals) arising out of resulting from or relating to the transactions contemplated by all the sale agreements, any claims arising out of any of powers of attorney persuant to which any of all the sale agreements are made, being invalid or the subject of any challenge; (E) Any reimbursement in whatever manner by the company for any reason whatsoever of any fees or remuneration paid to the company prior to completion except as reserved for in the net receivables; (F) Any liability of any of the dormant companies referred to in warranty schedule 3.6.7, Or any cost including tax cost of their liquidation exceeding in total frf 50,000; (G) Any liability in respect of NACC SA; (H) Any cost including any tax cost of the reorganisation as described in clause 3.5 Including the absorption of FA and step by way of merger, exceeding the amount of us $ 70,000; (I) (i) the purchaser not having full valid ownership free from encumbrances of all the FA shares or all the AI shares (directly or indirectly through fa) or of all the shares in the subsidiaries other than AI (directly or indirectly through ai) as set out in warranty annex 3.6.7, Or (ii) such shares not being freely transferable without restrictions or (iii) such shares not representing 100% of the share capital and voting rights of FA and the subsidiaries or (iv) there being any other right or interest in FA and the subsidiaries or such shares which is not directly or indirectly owned by the purchaser. In respect of calculation of any loss, it is hereby further agreed as follows: - There shall be included in any loss, all expenses including legal expenses of obtaining indemnification; - Any reassessment to tax involving a simple transfer of profit from one accounting period to the next and any reassessment, in particular in respect of value added tax (taxe sur la valeur ajoutee) which does not impose an overall charge on the company, shall not be included in the calculation of the loss, - 23 - except in respect of any fine, interest, compensation or indemnity which such reassessment may bring about; - There shall be deducted the amount of any sum paid to the company under any insurance policies and relating to such loss. 4.2 Notwithstanding that the principals have sold 28.28 Per cent of the fa shares and 10.44 Per cent of the AI shares persuant to the sale agreement referred to in recital (c) of this warranty agreement, the liability of the principals hereunder shall be calculated as if the principals had sold to the purchaser all the FA shares and all the ai shares sold or agreed to be sold to the purchaser persuant to all of the sale agreements. 4.3 The liability of the principals hereunder shall be limited to the amount of (i) us $ 10,000,000 for all cumulative claims hereunder relating to a reduction in the value of assets or an increase in liabilities by reference to the accounting values in the june accounts or the receivables at the completion and (ii) us $ 6,000,000 for matters arising in respect of all cumulative claims hereunder not within (i) above. Notwithstanding anything to the contrary, the foregoing limitations shall not apply to claims in respect of clauses 4.1 (D), 4.1 (F), 4.1 (G) and 4.1 (I). Any claim amount shall be reduced by any applicable deductible but not in respect of matters arising in respect of any claims relating to 4.1.(B), 4.1 (D), 4.1 (F), 4.1 (G) 4.1 (H) and 4.1 (I) above the indemnification ceilings set forth in (i) and (ii) of this clause 4.3 Shall not be cumulative of one and other and for the avoidance of doubt the maximum aggregate, liability of the principals hereunder shall be limited to us $ 10,000,000. 4.4 The purchaser shall have the right to set-off against the escrow stock in accordance with the indemnity escrow and stock pledge agreement any amounts payable by the principals to the purchaser pursuant to the indemnification provisions in this clause 4. 5. Liability under the warranty agreement by the principals 5.1 Notification - conduct of disputes and litigation 5.1.1 Any claim made under the warranties or indemnities above must be notified to the principals within a reasonable period of time from the moment the purchaser becomes aware of the fact or event of such a nature as to justify a claim under the warranties or indemnities. Any claim made under the warranties or indemnities must be founded upon and accompanied by information and details useful for this purpose, subject to the provisions of clause 6.2. 5.1.2 In the event that a fact comes to light or an event occurs which is likely to give rise to an indemnity under this warranty agreement involving a third party claim, the purchaser will at all times conduct the defence of such a claim in good faith and will invite the principals to take part at their own expense and with their own advisors in the negotiation and possible dispute or litigation relating to such a claim. In such a case the conduct of the dispute or litigation will be assumed jointly by the principals and the purchaser and the purchaser will not be entitled to settle any such claim without the prior consent of the principals which consent cannot be refused without good reason particularly where the third party is a client of the company and having regard to the commercial relationship of the company with such client. If the principals do not inform the purchaser that they wish to exercise their rights under the preceding paragraph within 30 days of receiving the notice referred to above, the principals will be deemed to have waived their rights in this respect. - 24 - 5.2 PAYMENT Any sums due from the principals in respect of any indemnified loss calculated in accordance with this warranty agreement shall be paid within a period of 30 days from the first written demand from the purchaser or any of the company, and, at the choice of the purchaser, shall be made to the purchaser or any of the company. If the principals pay any sum to the purchaser for an indemnified loss, and the purchaser ultimately recovers a further sum for the same indemnified loss from a third party (including any tax authority), the purchaser will promptly pay such sum paid by the third party to the principals , subject to the total amount paid to the principals not exceeding the sums recovered from such third party, less all costs, charges and expenses reasonably incurred and justified by the purchaser in order to obtain such a payment and to recover such sums from the third party in question. Without prejudice to the right of the purchaser, if necessary, to enforce its rights under the last paragraph (alinea) of article 1153 of the civil code, if the payments have not been made by the due date, the sum outstanding will bear interest immediately and without prior notice, at the paris inter-bank rate (taux interbancaire offert a paris - tiop) (3 months) plus two per cent (2%). This provision should not be considered as authorising the principals to make late payments. For any claim that is subject to reduction by a deductible, the deductible shall be finally recalculated at and as of january 1, 2000 to take into account any collections of receivables at completion and any reduction in any reserve for litigation reserved in the june accounts (to the extent that such reserve remained in place at completion), which is made in the financial statements prepared under us gaap as determined by the conseil de surveillance of ai, and that occured after the date of the claim and before january 1, 2000, to the extent such collections or settlements or adjudications have not been not previously taken into account in reducing any other claim. If as a result of this final recalculation of such claims, the amount of any net claim is reduced below the net amount received by purchasers with respect to such claim, then purchasers shall repay promptly such difference to the principals jointly. 6. PERIOD FOR CLAIMS 6.1 Any claim under this warranty agreement must be notified to the principals by the purchaser: - regarding matters of taxation and social security during the applicable limitation period increased by a further 30 days; and - 25 - - regarding other matters by 31 december 1999; and - except that there shall be no time limitation for notification for matters arising in respect of claims under clauses 4.1. (B), 4.1 (D), 4.1 (F), 4.1 (G), 4.1 (H) or 4.1 (I) above. 6.2 For the avoidance of doubt, any notification to the principals regarding an indemnified loss may be made by the purchaser up until the last day of the applicable period, and this is so even when the sums potentially due are not precisely known or determinable before or on such date, provided that the purchaser notifies the principals of the existence of such in accordance with the provisions of this warranty agreement. The principals may not avoid their obligations under the warranties contained in this warranty agreement or the financial liability resulting therefrom by pleading ignorance of any facts capable of giving rise to a claim under this warranty agreement or by relying upon facts and information not contained expressly in this warranty agreement. 7. INDEMNITY AND ESCROW AGREEMENT The Principals have deposited into escrow with Escrow Agent and pledged pursuant to the Indemnity Escrow and Stock Pledge Agreement 532 049 Stock of PRG, which Stock together with Stock pledged with Escrow Agent by Banque Internationale a Luxembourg persuant to the Indemnity Escrow and Pledge Agreement shall be held by Escrow Agent as a non exclusive source of claims for indemnification persuant to the terms of the Indemnity Escrow and Stock Pledge Agreement. 8. BENEFIT OF THE AGREEMENT This Agreement is made in favour of the Purchaser and/or any physical or legal person who may join with or be substituted for the Purchaser in respect of the purchase of the FA Shares and the AI Shares under any of All the Sale Agreements. However, in the event of a subsequent sale transfer (or contribution) of all or part of the FA Shares and the AI Shares, the Purchaser may transfer to the purchaser (or recipient) the benefit of this Agreement in whole or pro rata to the rights in the share capital of the FA or AI which have been acquired by such purchaser (or recipient). In the same way, the parties agree that the Purchaser may by any means (including by the pledging or transfer of the right to receive the benefit of the contract (creance) within the context of law 81- 1 of 2 January 1981) use the benefit of this Agreement as security to any French or foreign credit establishments or financial institutions. 9. TRANSFER BY THE PRINCIPALS The Principals may not substitute any third party for themselves in any way whatsoever in respect of the performance of their obligations hereunder. - 26 - 10. SUCCESSORS AND ASSIGNS OF THE PRINCIPALS The obligations set out in this Agreement shall bind the inheritors, successors and assigns of the Principals who shall be jointly and severally and indivisibly bound in respect of the performance of the obligations hereunder. 11. WAIVER The non-exercise by the Purchaser or the Vendors of any of their respective rights pursuant to this Agreement shall not in any way whatsoever be construed as a waiver of that right and shall not affect in any way whatsoever the right of such party to exercise such right. No waiver of any representation or contractual or legal warranty will be effective without a written and signed declaration of the person giving the waiver notifying the other party of its waiver. 12. SEVERABILITY OF CLAUSES In the event that any of the clauses hereof becomes void, unenforceable, invalid, illegal or inapplicable, this shall not jeopardise the validity, legality or applicability of the other provisions of this Agreement and shall not release the Principals from the performance of this Agreement. 13. ANNOUNCEMENTS Neither the making of this Agreement nor its terms shall be disclosed by any party hereto without the prior consent of the other parties unless disclosure is required by law or the rules of any regulatory or governmental body, including the SEC. 14. COSTS All of the expenses incurred by PRG in connection with and incidental to the negotiation, preparation, authorisation, execution and performance of this agreement and All the Sale Agreements and transaction contemplated herein, including, without limitation, all legal and accounting expenses, shall be paid by PRG. All expenses incurred by Alma Group and All the Vendors and the Principals in connection with the negotiation, preparation, authorisation, execution and performance of this agreement and All the Sale Agreements and transactions contemplated herein, including, without limitation, all legal, accounting and investment banking expenses, costs incurred in negotiating this Warranty Agreement, preparation of the Disclosures and costs incurred in responding to PRG's requests for information (but excluding up to US $ 70,000 of the Reorganisation Costs and costs of Alma Group within the normal remuneration of employees of Alma Group in presentation of Disclosures and answering diligence requests) will be paid by the Principals at the Principals sole cost and responsibility (the "PRINCIPALS EXPENSES"). The Principals shall promptly reimburse Alma Group for such Principals Expenses. - 27 - 15. ENTIRE AGREEMENT This Warranty Agreement and All the Sale Agreements (together with any agreements or documents referred to in this Agreement or All the Sale Agreements) constitute the entire agreement between the parties hereto in connection with the subject matter of this Agreement and All the Sale Agreements or any agreement or document referred to in this Warranty Agreement or All the Sale Agreements. No party has relied upon any warranty or representation save for the those expressly set out in this Warranty Agreement or All the Sale Agreements (or any document referred to in this Warranty Agreement or in All the Sale Agreements). 16. WAIVER, AMENDMENT 16.1 No waiver of any term, provision or condition of this Agreement shall be effective unless such waiver is evidenced in writing and signed by the waiving party. 16.2 No omission or delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or of any other right, power or privilege. The rights and remedies herein provided are cumulative with and not exclusive of any rights or remedies provided by law. 16.3 No variation to this Agreement shall be effective unless made in writing and signed by all the parties. 17. NOTICES Save as specifically otherwise provided in this Warranty Agreement any notice, demand or other communication to be served under this Warranty Agreement may be served upon any party hereto only by posting by first class post or sending the same by an international recognised courier service which guarantees at least second business day delivery or sending the same by facsimile transmission to the party to be served at its address given below, or facsimile number given below or at such other address or number in France on the United States as he or it may from time to time notify in writing to the other parties hereto:- If to the Principals: Mr Marc Eisenberg 14, rue Margueritte 75017 Paris in either case, with a copy to: Wilinski et Scotto 19, rue Marbeuf 75008 Paris Attention: Serge Wilinski Telefax: 01 53 57 97 98 - 28 - If to the Purchaser: The Profit Recovery Group International, Inc. 2300 Windy Ridge Parkway Suite 100 North Atlanta, Georgia 30339-8426 Attention: Clinton McKellar, Jr, Senior Vice President and General Counsel Telefax: (770) 661-3034 with a copy to: Ashurst Morris Crisp 22, rue de Marignan 75008 Paris Attention: Christopher Crosthwaite, Thomas Forschbach Telefax: 01 53 53 53 54 or at such other address as any party hereto notifies the other parties hereof in writing. The parties hereto agree that notices or other communications that are sent in accordance herewith (i) by personal delivery or telefax, will be deemed received on the day sent or on the first business day thereafter if not sent on a business day, (ii) by courier delivery, will be deemed received on the second business day immediately following the date sent, and (iii) by certified mail, will be deemed received seven (7) business days immediately following the date sent. For purposes of this Agreement, a "BUSINESS DAY" is a day on which PRG and FA or AI is open for business and shall not include a Saturday or Sunday or legal holiday in France or the United States. Notwithstanding anything to the contrary in this Agreement, no action shall be required of the parties hereto except on a business day and in the event an action is required on a day which is not a business day, such action shall be required to be performed on the next succeeding day which is a business day. 18. COUNTERPARTS This Agreement may be executed in any number of counterparts and by the several parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all the counterparts shall together constitute one and the same instrument. 19. GOVERNING LAW AND RULING VERSION 19.1 This Agreement (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in any way relating to this agreement or its formation) shall be governed by and construed in accordance with French law. 19.2 Any dispute arising from the execution of this Agreement shall be finally resolved in accordance with the Rules of Conciliation and Arbitration of the International Chamber of Commerce by three arbitrators nominated in accordance with their rules unless the parties can agree on a sole arbitrator. The arbitration shall take place in Paris. The language of the arbitration shall be English. - 29 - MADE AND SIGNED IN TWO (2) EXAMPLES AT BROADWALK HOUSE, 5 APPOLD SREET, LONDON EC2A 2HA ON THE FIRST ABOVE DATE WRITTEN THE PROFIT RECOVERY GROUP INTERNATIONAL, INC By: /s/ Clinton McKellar, Jr. _________________________________________ Clinton McKellar, Jr., Senior Vice President and General Counsel CLINTON MCKELLAR, JR, AS "MANDATAIRE" FOR THE SHAREHOLDERS OF PRG FRANCE SA IN FORMATION By:/s/ Clinton McKellar, Jr. _______________________________________ Clinton McKellar, Jr. By: /s/ Marc Eisenberg _______________________________________ Marc Eisenberg By: /s/ Eric Eisenberg ______________________________________ Eric Eisenberg - 30 - EX-2 10 EXHIBIT 2.8 INDEMNITY ESCROW AND STOCK PLEDGE INDEMNITY ESCROW AND STOCK PLEDGE AGREEMENT THIS INDEMNITY ESCROW AND STOCK PLEDGE AGREEMENT (the "ESCROW AGREEMENT") is made as of October 7, 1997, by and among The Profit Recovery Group International, Inc., a Georgia corporation ("PRG"), Clinton McKellar, Jr. acting as Agent ("Mandataire") in the name of and on behalf of PRG France SA, a French societe anonyme in the process of formation at the date hereof ("AGENT") (which expression shall on formation of PRG France SA mean PRG France SA), PRG Agent and PRG France SA being together called the "PURCHASERS", which expression includes each or any of them and Marc Eisenberg and Eric Eisenberg ("PRINCIPALS") and Banque Internationale a Luxembourg SA of 69, route d'Esch, L- 1470 Luxembourg ("BIL") formerly stockholders of Financiere Alma SA ("ALMA") and Alma Intervention SA ("AI"), Arnall Golden & Gregory, LLP as interim escrow agent hereunder ("INTERIM ESCROW AGENT") and the Permanent Escrow Agent as provided for below (the term "Escrow Agent" referring herein either to Interim Escrow Agent or to Permanent Escrow Agent, as appropriate. WITNESSETH: In this Recital capitalized terms have the same meaning as agreed in clause 1 below. Whereas, Purchasers have acquired or agreed to acquire all the shares of Alma and AI pursuant to All the Agreements dated 7 October, 1997 among Purchasers, the Principals and the other stockholders of Alma and AI (including BIL). This Escrow Agreement is entered into by Purchasers, the Principals, BIL and Interim Escrow Agent (i) in accordance with section 7 of the Warranty Agreement, pursuant to which the Principals agreed to pledge and deposit certain of the Stock (as defined in the Warranty Agreement) in escrow (with Interim Escrow Agent agreeing to serve hereunder only on an interim basis until a permanent escrow agent is selected by other parties hereto and enters into a successor escrow agreement, but in no event for a period ending after 15 January, 1998 (the "INTERIM ESCROW PERIOD") all as provided in Section 10 hereof) and (ii) in accordance with the BIL Sale Agreement whereby, BIL agreed to pledge and deposit the Stock as defined in the BIL Sale Agreement, in each case to secure certain indemnity obligations of the Principals to Purchasers in accordance with the provisions of the Warranty Agreement and the Indemnity Agreement. - 1 - AGREEMENT: In consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1. Capitalized Terms Except as otherwise specifically defined in this Escrow Agreement, the capitalized terms used herein shall have the meanings given such terms in the Warranty Agreement, the "BIL SALE AGREEMENT" means the sale agreement between BIL and the Purchasers referred to in Recital (C) of the Warranty Agreement, the "PRINCIPALS SALE AGREEMENT" means the sale agreement between the Principals and the Purchaser referred to in Recital (C) of the Warranty Agreement and the "INDEMNITY AGREEMENT" means the Indemnity Agreement made between the Purchaser and Marc Eisenberg and dated as of the date of this Escrow Agreement. Copies of all of such agreements are attached hereto. 2. Deposit of Shares (a) To secure the satisfaction of Principals' obligations under the Warranty Agreement and the Indemnity Agreement and hereunder and to secure the rights of Purchasers under the Warranty Agreement and the Indemnity Agreement and hereunder, the Principals and BIL hereby grant to Escrow Agent as bailee for the purpose of holding and perfecting for Purchasers a lien upon, security interest in and security title to, and hereby assign, transfer and pledge to Escrow Agent as such bailee for Purchasers to hold in escrow pursuant to the terms hereof, 532 049 shares of the Stock received by the Principals pursuant to the Principals Sale Agreement and by BIL pursuant to the BIL Sale Agreement. Such shares so deposited with Escrow Agent less any shares set aside or transferred pursuant to the terms hereof are hereinafter referred to as the "ESCROW SHARES". The Escrow Shares shall be held and disposed of in accordance with the terms of this Escrow Agreement. The parties hereto acknowledge that the Principals and BIL hereby grant to Escrow Agent as bailee for Purchasers, and Escrow Agent as bailee for Purchasers has, all of the rights and remedies granted pursuant to this Escrow Agreement or given to a secured party under the Uniform Commercial Code of Georgia. (b) Interim Escrow Agent hereby irrevocably appoints Ashurst Morris Crisp of Paris as its agent to accept possession of the Escrow Shares at Completion and to deliver promptly and under separate cover the related stock powers, to Interim Escrow Agent by an internationally recognized air courier service. Each certificate evidencing any of the Escrow Shares shall be deposited with Interim Escrow Agent - 2 - and shall have attached thereto a stock power duly executed in blank by the Principals and BIL as appropriate, in proper form to permit the transfer of the Escrow Shares represented thereby on the books of PRG if the conditions for such transfer are met pursuant to the terms hereof. The Principals and BIL shall not assign, pledge or transfer in any manner their interests in the Escrow Shares during the term of this Escrow Agreement. The Escrow Shares shall continue to be registered in the name of the Principals or BIL, as appropriate, unless they are transferred to Purchasers in accordance with the terms of this Escrow Agreement. 3. Indemnification Claims Against Escrow Shares (a) During the term hereof, if Purchasers determine that they are entitled to indemnification pursuant to the Warranty Agreement or the Indemnity Agreement, Purchasers shall give written notice (the "CLAIM NOTICE") to the Escrow Agent, the Principals and BIL that Purchasers are entitled to payment of such Claim and seek transfer to PRG of all or a portion of the Escrow Shares. The Claim Notice shall state the basis for the Claim and the amount of the Claim (which amount converted to US Dollars in accordance with the Warranty Agreement as of the date of the Claim Notice in the case of Section 3 (a), (b) or (d), or the date as of which Market Value is determined in the case of Section 3 (e) hereof, is referred to herein as the "CLAIM AMOUNT"). The Principals and BIL shall provide written confirmation to Purchasers and Escrow Agent of the dates of receipt by each Principal and BIL of the Claim Notice; provided, however, that any refusal or failure by the Principals or BIL to provide such written confirmation shall not affect the release of the Escrow Shares pursuant to the provisions of Section 3 hereof. Further, if Escrow Agent has not received any written confirmation from the Principals or BIL of the first date on which a Principal or BIL received such Claim Notice, then Escrow Agent may rely on reasonable evidence supplied by Purchasers as to such first date of receipt of such Claim Notice by a Principal. (b) If a Claim Notice is given during the Interim Escrow Period and Escrow Agent does not receive, within 20 business days after such Claim Notice was first received by either a Principal or BIL (the "DISPUTE NOTICE PERIOD"), a notice from either or both of the Principals or BIL (the "DISPUTE NOTICE") stating that a dispute exists relating to the Claim Notice (a "DISPUTED CLAIM") and the basis of such dispute, Escrow Agent shall promptly thereafter release from escrow for transfer to Purchasers that number of Escrow Shares equal to the quotient of (1) the Claim Amount, divided by (2) the average closing sale price per share of Stock (as reported in The Wall Street Journal) for the last ten trading days immediately preceding the 21st business day after Interim Escrow Agent's receipt of the relevant Claim Notice. (c) If Escrow Agent receives a Dispute Notice within the Dispute Notice Period , Escrow Agent shall promptly notify Purchasers and BIL to that effect and continue to hold the Escrow Shares subject to a Disputed Claim in accordance with this Escrow Agreement and Purchasers, Principals and BIL shall resolve the Dispute either by agreement or in accordance with the procedure for arbitration set forth in Section 7 of the Warranty Agreement or Section 6 of the Indemnity Agreement as appropriate. (d) Except for transfers of Escrow Shares pursuant to clause 3 (b) above, the Escrow Shares shall be transferred to PRG or released to the Principals or BIL by Escrow Agent as follows: - 3 - (1) If Purchasers obtain a final arbitration award in favor of Purchasers in respect of any Disputed Claims (the "PRG ARBITRATION AWARD") and Purchasers furnish Escrow Agent with a copy of such award bearing the enforcement stamp issued by any relevant jurisdiction where such enforcement may be sought, then Escrow Agent shall promptly release from escrow for transfer to Purchasers that number of Escrow Shares equal to the quotient of: (x) the PRG Arbitration Award converted to US dollars in accordance with the Warranty Agreement or in the Indemnity Agreement as of the date of such final award, divided by (y) the average closing sale price per share of the Stock in US Dollars for the last ten trading days immediately preceding the date of the PRG Arbitration Award. (2) If the Principals and BIL and Purchasers jointly instruct Escrow Agent on any release and/or transfer of all or any portion of the Escrow Shares, Escrow Agent shall act in accordance with such instruction. (e) (1) On the first business day following the first anniversary of the Completion Date, Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals and BIL in the proportions in which they deposited Escrow Shares with Escrow Agent the number of Escrow Shares which equals 15% of the initial number of Escrow Shares deposited in escrow with the Escrow Agent pursuant to this Escrow Agreement less (i) the number of Escrow Shares released to Purchasers pursuant to either 3 (b) or 3 (d) above provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this clause 3 (e) (1) Market Value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the first anniversary of the Completion Date. (2) On the first business day following the second anniversary of the Completion Date, Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals the number of Escrow Shares which equals 15% of the initial number of Escrow Shares deposited in escrow with the Escrow Agent pursuant to this Escrow Agreement less (i) the number of Escrow Shares released to Purchasers pursuant to either 3 (b) or 3 (d) above provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this Clause 3 (e) (2) Market Value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the second anniversary of the Completion Date. - 4 - (3) On the first business day following the third anniversary of the Completion Date, Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals the number of Escrow Shares which equals 20% of the initial number of Escrow Shares deposited in escrow with the Escrow Agent pursuant to this Escrow Agreement less (i) the number of Escrow Shares released to Purchasers pursuant to either 3 (b) or 3 (d) above provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this Clause 3 (e) (3) Market Value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the third anniversary of the Completion Date. (4) On the first business day following the fourth anniversary of the Completion Date, Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals the number of Escrow Shares which equals 30% of the initial number of Escrow Shares deposited in escrow with the Escrow Agent pursuant to this Escrow Agreement less (i) the number of Escrow Shares released to Purchasers pursuant to either 3 (b) or 3 (d) above provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this Clause 3 (e) (4) Market Value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the fourth anniversary of the Completion Date. (5) On the first business day following the fifth anniversary of the Completion Date, Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals the remaining number of Escrow Shares less the number of Escrow Shares determined by dividing the Claim Amounts with respect to any Disputed Claim by the Market Value provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this Clause 3 (e) (5) Market value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the fifth anniversary of the Completion Date. - 5 - (6) Thereafter, upon resolution of each Disputed Claim Escrow Agent shall promptly as soon as possible thereafter release from the Escrow Agreement and deliver to the Principals the remaining number of Escrow Shares less the number of Escrow Shares determined by dividing the Claim Amount with respect to a Disputed Claim by the Market Value provided, however, that in no event shall Escrow Shares be released from the Escrow Agreement to the extent that the number of Escrow Shares remaining subject to the Escrow Agreement shall be less than that number determined by dividing the Claim Amounts with respect to any Disputed Claims by the Market Value. For the purpose of this Clause 3 (e) (6) Market Value shall mean the average closing sale price of PRG Common Stock (as reported in the Wall Street Journal) for the last ten trading days immediately preceding the first business day following the communication of the resolution of such Disputed Claim to the Escrow Agent. (f) All stock amounts shall be adjusted for any stock splits or stock dividends as notified by PRG to Escrow Agent and the Principals. 4. Voting: Dividends and Other Distributions; Issued and Outstanding (a) Prior to the release from escrow of any shares of PRG Common Stock constituting the Escrow Shares pursuant to the terms of this Escrow Agreement, all ownership, voting and cash dividend rights in such Escrow Shares shall belong to the Principals and BIL. The Principals and BIL shall be entitled to retain all cash or other taxable dividends paid or distributed on or in respect of the shares of PRG Common Stock constituting the Escrow Shares, other than dividends payable in PRG Common Stock and PRG Common Stock issued as a result of a stock split. The Principals and BIL hereby agree to deliver to Interim Escrow Agent promptly upon receipt thereof, to be held in escrow subject to the terms of this Escrow Agreement, all dividends in PRG Common Stock received in respect of the Escrow Shares and all PRG Common Stock issued as a result of a stock split received in respect of the Escrow Shares, together with stock powers duly executed in blank by the Principals and BIL, in proper form to permit the transfer of the shares represented thereby on the books of PRG. All such shares shall be distributed by Interim Escrow Agent in the same manner as the Escrow Shares in respect of which they were issued. (b) PRG acknowledges and agrees that the Escrow Shares are duly issued and outstanding on its books for all purposes. 5. Joint Notices If at any time Escrow Agent shall receive a notice signed jointly by Purchasers, Principals and BIL containing instructions to Escrow Agent regarding the disposition of the Escrow Shares or any matter related thereto, Escrow Agent shall comply with such instructions. Similarly, if at any time Escrow Agent shall receive a notice signed by Purchasers, Principals and BIL that this Escrow Agreement has been terminated and containing instructions for releasing the then remaining number Escrow Shares from the Escrow Agreement, Escrow Agent shall act in accordance with the instructions contained in such notice and upon such release this Escrow Agreement shall be deemed terminated and Escrow Agent shall be released and discharged from all further obligations hereunder. - 6 - 6. Ministerial Duties of Escrow Agent It is understood and agreed that the duties of Escrow Agent hereunder are purely ministerial in nature and that Escrow Agent shall not be liable for any error of judgment, fact or law, or any act done or omitted to be done except for its own willful misconduct or gross negligence. With respect to the Warranty Agreement, the Escrow Agent shall not be required to determine whether an event or condition thereunder has occurred, been met or satisfied, or as to whether a provision of the Warranty Agreement has been complied with, or as to whether sufficient evidence of the event or condition or compliance with the provision has been furnished to it. No action in compliance with the terms of this Escrow Agreement shall subject the Escrow Agent to any claim, liability or obligation whatsoever, even if it shall be found that such determination was improper or incorrect, provided only, that Escrow Agent shall not have been guilty of willful misconduct or gross negligence in making such determination. 7. Genuineness: Validity Escrow Agent shall not be responsible for the genuineness or validity of any document or item deposited with it or any notice or instruction given to it, and it is fully protected in acting in accordance with any written instruction or instrument given to it, and reasonably believed by it to have been signed by the proper parties. 8. Conflicting instructions If at any time Escrow Agent shall receive conflicting notices, claims, demands or instructions with respect to the Escrow Amount, or if for any other reason it shall be unable in good faith to determine the party or parties entitled to receive the Escrow Shares, or any part thereof, Escrow Agent may (i) hold the Escrow Shares pending resolution of the dispute by mutual agreement of the Purchasers, Principals and BIL or by a final, unappealable order of court of competent jurisdiction or award of an arbitrator, whereupon Interim Escrow Agent shall make such disposition in accordance with such instructions, order or award or (ii) tender the Escrow Shares into the registry or custody of any court of competent jurisdiction, together with such legal pleadings as it may deem appropriate, and thereupon be discharged from all further duties and liabilities under this Escrow Agreement. Any such legal action may be brought in such court as the Escrow Agent may determine to have jurisdiction thereof. - 7 - 9. Resignation of Escrow Agent Escrow Agent may resign at any time prior to the end of the term hereof upon giving the parties hereto thirty (30) calendar days' prior written notice to that effect. In such event, the successor shall be such person, firm or corporation as shall be mutually selected by Purchasers, Principals and BIL. It is understood and agreed that such resignation shall not be effective until a successor agrees to act hereunder; provided, however, if no successor is appointed and acting hereunder within thirty (30) days after such notice is given, Escrow Agent may deliver the then remaining Escrow Shares into a court of competent jurisdiction. 10. Permanent Escrow Agent On or before the end of the Interim Escrow Period, Purchasers, Principals and BIL shall select a successor escrow agent ("PERMANENT ESCROW AGENT"). Upon the expiration of the Interim Escrow Period (or such earlier date as such Permanent Escrow Agent has executed and delivered a copy of this Escrow Agreement to the parties hereto) Interim Escrow Agent shall deliver the then remaining Escrow Shares to such Permanent Escrow Agent, from and after which delivery Interim Escrow Agent shall be discharged from any further duties and liabilities hereunder. If no Permanent Escrow Agent has executed and delivered a copy of this Escrow Agreement to the parties hereto prior to the expiration of the Interim Escrow Period, Interim Escrow Agent may deliver the then remaining Escrow Shares into a court of competent jurisdiction, from and after which delivery Interim Escrow Agent shall be discharged from any further duties and liabilities hereunder. 11. Miscellaneous (a) Notices: All notices, requests, demands, claims or other communications hereunder will be in writing and shall be deemed duly given if personally delivered, sent by telefax, sent by a recognized international delivery service which guarantees at least second business daydelivery ("COURIER DELIVERY") or mailed by registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below: If to Principal: To the address set forth for Principals on the stockholder records of PRG's Transfer Agent with a copy to: Wilinski & Scotto 19, rue Marbeuf 75008 Paris Attention: Serge Wilinski Telefax: 01 53 53 97 98 - 8 - If to Purchasers: The Profit Recovery Group International, Inc. 2300 Windy Ridge Parkway, Suite 100 North Atlanta, GA 30339-8426 Attention: Clinton McKellar, Jr, Senior Vice President and General Counsel Telefax: (770) 661-3034 with a copy to: Ashurst Morris Crisp 22, rue de Marignan 75008 Paris Attention: Christopher Crosthwaite, Thomas Forschbach Telefax: 01 53 53 53 54 If to Interim Escrow Agent: Arnall Golden Gregory, LLP 2800 One Atlantic Center 1201 West Peachtree Street Atlanta, Georgia 30309-3450 Attention: Jonathan Golden, Esq. Telefax: (404) 873-8701 If to Permanent Escrow Agent: [ ] or at such other address as any party hereto notifies the other parties hereof in writing. The parties hereto agree that notices or other communications that are sent in accordance herewith (i) by personal delivery or telefax, will be deemed received on the business day sent, (ii) by Courier Delivery, will be deemed received the second business day immediately following the date sent, and (iii) by mail, will be deemed received seven (7) business days immediately following the date sent. For purposes of this Escrow Agreement, a "business day" is a day on which PRG is open for business and shall not include a Saturday or Sunday or legal holiday. Notwithstanding anything to the contrary in this Escrow Agreement, no action shall be required of any party heretoexcept on a business day and in the event an action is required on a day which is not a business day, such action shall be required to be performed on the next succeeding day which is a business day. (b) Counterparts: This Escrow Agreement may be executed in counterparts, all of which taken together shall be deemed one original. (c) Entire Agreement: This Escrow Agreement contains the entire agreement among the parties with respect to the Escrow Shares. This Escrow Agreement may not be amended or supplemented, and no provision, hereof may be waived, except by an instrument in writing signed by all of the parties hereto. No waiver of any provision hereof by any party shall be deemed a continuing waiver of any matter by such party. (d) Rights Cumulative: The rights, powers and remedies given to Purchasers by this Escrow Agreement shall be in addition to all rights, powers and remedies given to Purchasers by virtue of any statute or rule of law and all such rights, powers and remedies are cumulative and not alternative, and may be exercised and enforced successively or concurrently. Any forebearance or failure or delay by Purchasers in exercising any right, power or remedy - 9 - hereunder shall not be deemed to be a waiver of such right, power or remedy, and any single or partial exercise of any right, power or remedy hereunder shall not preclude the further exercise thereof; and every right, power and remedy of Purchasers hereunder shall continue in full force and effect until such right, power and remedy is specifically waived by an instrument in writing executed by Purchasers. (e) Governing Law and Submission to Jurisdiction: Except as otherwise expressly provided herein, this Escrow Agreement shall be governed by and construed under the laws of the State of Georgia. Principal hereby agrees to submit to the jurisdiction of the courts of the State of Georgia and the federal courts within the State of Georgia and hereby appoints the Secretary of State of the State of Georgia as agent for the purpose of receiving service of process in respect of any proceeding in connection herewith. All claims in respect of or related to the Warranty Agreement or the Indemnity Agreement will be resolved in accordance with the procedure for arbitration set out in clauses 6 and 7 respectively of those agreements. (f) Permanent Escrow Agent Fee: the Permanent Escrow Agent shall be paid its fee and reasonable expenses by Purchasers and the Principals which shall be agreed upon by Permanent Escrow Agent, Purchasers, Principals and BIL and attached hereto upon execution hereof by Permanent Escrow Agent. - 10 - IN WITNESS WHEREOF, the undersigned have caused this Escrow Agreement to be duly executed at Broadwalk House, 5 Appold Street, London EC2A 2HA, as of the date first set forth above. THE PROFIT RECOVERY GROUP INTERNATIONAL, INC. By: /s/Clinton McKellar, Jr. ------------------------- Clinton McKellar, Jr., Senior Vice President and General Counsel PRG FRANCE SA By: /s/ Clinton McKellar, Jr. ---------------------------------- Clinton McKellar, Jr. (acting as Agent (mandataire) in the name of and on behalf of PRG France SA, in the process of being incorporated) PRINCIPALS /s/ Marc Eisenberg - ---------------------------------- Marc Eisenberg /s/ Eric Eisenberg - ---------------------------------- Eric Eisenberg - 11 - BIL BANQUE INTERNATIONALE A LUXEMBOURG SA By: /s/ Jean Bodoni INTERIM ESCROW AGENT ARNALL GOLDEN & GREGORY, LLP /s/ Arnall Golden & Gregory, LLP PERMANENT ESCROW AGENT* By: __________________________________ Its: _________________________________ - 12 - -----END PRIVACY-ENHANCED MESSAGE-----