UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Amendment No. 21)
Under the Securities Exchange Act of 1934
PRG-SCHULTZ INTERNATIONAL, INC.
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(Name of Issuer)
Common Stock, No Par Value Per Share
------------------------------------
(Title of Class of Securities)
69357C503
---------
(CUSIP Number)
Gregory D. Hitchan
Blum Capital Partners, L.P.
909 Montgomery Street, Suite 400
San Francisco, CA 94133
(415) 434-1111
--------------
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
October 1, 2007
-----------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition that is the subject of this Schedule 13D, and is filing
this schedule because of Section 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g),
check the following box [ ].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Section 240.13d-7 for
other parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities,
and for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be
deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act (however, see
the Notes).
Page 1 of 11
CUSIP NO. 69357C503 SCHEDULE 13D Page 2 of 11
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1. NAME OF REPORTING PERSON BLUM CAPITAL PARTNERS, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3205364
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION California
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,306,115 shares (including 1,681,764 shares issuable
OWNED BY EACH upon conversion of Series A Preferred Stock)**
PERSON WITH
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
10. SHARED DISPOSITIVE POWER
5,306,115 shares (including 1,681,764 shares issuable
upon conversion of Senior Series A Preferred Stock)**
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11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,306,115 shares (including 1,681,764 shares issuable upon conversion
of Series A Preferred Stock)**
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12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 24.9%**
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14. TYPE OF REPORTING PERSON PN, IA
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** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 3 of 11
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1. NAME OF REPORTING PERSON RICHARD C. BLUM & ASSOCIATES, INC.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-2967812
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION California
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,306,115 shares (including 1,681,764 shares issuable
OWNED BY EACH upon conversion of Series A Preferred Stock)**
PERSON WITH
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
11. SHARED DISPOSITIVE POWER
5,306,115 shares (including 1,681,764 shares issuable
upon conversion of Senior Series A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,306,115 shares (including 1,681,764 shares issuable upon conversion
of Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 24.9%**
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14. TYPE OF REPORTING PERSON CO
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** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 4 of 11
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3303831
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,306,115 shares (including 1,681,764 shares issuable
OWNED BY EACH upon conversion of Series A Preferred Stock)**
PERSON WITH
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
12. SHARED DISPOSITIVE POWER
5,306,115 shares (including 1,681,764 shares issuable
upon conversion of Senior Series A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,306,115 shares (including 1,681,764 shares issuable upon conversion
of Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
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13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 24.9%**
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14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
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** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 5 of 11
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1. NAME OF REPORTING PERSON BLUM STRATEGIC GP II, L.L.C.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395150
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
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5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
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7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,306,115 shares (including 1,681,764 shares issuable
OWNED BY EACH upon conversion of Series A Preferred Stock)**
PERSON WITH
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
13. SHARED DISPOSITIVE POWER
5,306,115 shares (including 1,681,764 shares issuable
upon conversion of Senior Series A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,306,115 shares (including 1,681,764 shares issuable upon conversion
of Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 24.9%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON OO (Limited Liability Company)
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** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 6 of 11
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1. NAME OF REPORTING PERSON BLUM STRATEGIC PARTNERS II, L.P.
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON 94-3395151
------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [x]
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3. SEC USE ONLY
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4. SOURCE OF FUNDS* See Item 3
------------------------------------------------------------------------------
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
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6. CITIZENSHIP OR PLACE OF ORGANIZATION Delaware
------------------------------------------------------------------------------
7. SOLE VOTING POWER -0-
NUMBER OF -----------------------------------------------------------
SHARES 8. SHARED VOTING POWER
BENEFICIALLY 5,306,115 shares (including 1,681,764 shares issuable
OWNED BY EACH upon conversion of Series A Preferred Stock)**
PERSON WITH
-----------------------------------------------------------
9. SOLE DISPOSITIVE POWER -0-
-----------------------------------------------------------
14. SHARED DISPOSITIVE POWER
5,306,115 shares (including 1,681,764 shares issuable
upon conversion of Senior Series A Preferred Stock)**
------------------------------------------------------------------------------
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,306,115 shares (including 1,681,764 shares issuable upon conversion
of Series A Preferred Stock)**
------------------------------------------------------------------------------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
------------------------------------------------------------------------------
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 24.9%**
------------------------------------------------------------------------------
14. TYPE OF REPORTING PERSON PN
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** See Item 5
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 7 of 11
Item 1. Security and Issuer
----------------------------
This Amendment No. 21 amends the Statement on Schedule 13D (the "Schedule
13D") filed with the Securities and Exchange Commission (the "Commission") on
July 17, 2007 by Blum Capital Partners, L.P., a California limited
partnership, ("Blum LP"); Richard C. Blum & Associates, Inc., a California
corporation ("RCBA Inc. "); Blum Strategic GP, L.L.C., a Delaware limited
liability company ("Blum GP"); Blum Strategic GP II, L.L.C., a Delaware
limited liability company ("Blum GP II"); Blum Strategic Partners II, L.P., a
Delaware limited partnership ("Blum Strategic II"); Stinson Capital Partners,
L.P., a California limited partnership ("Stinson"); Stinson Capital Partners
(QP), L.P., a Delaware limited partnership ("Stinson QP"); and Stinson Capital
Partners II, L.P., a California limited partnership ("Stinson II")
(collectively, the "Reporting Persons").
This amendment to the Schedule 13D relates to the shares of Common Stock, no
par value per share (the "Common Stock") of PRG-Schultz International, Inc., a
Georgia corporation (the "Issuer"). The principal executive office and
mailing address of the Issuer is 600 Galleria Parkway, Suite 100, Atlanta,
Georgia 30339-5949.
The following amendments to the Schedule 13D are hereby made. Unless
otherwise defined herein, all capitalized terms shall have the meanings
ascribed to them in the Schedule 13D.
Item 2. Identity and Background
--------------------------------
There have been no changes to Item 2 since the last Schedule 13D Amendment
filed on July 17, 2007.
Item 3. Source and Amount of Funds or Other Considerations
------------------------------------------------------------
There have been no changes to Item 3 since the last Schedule 13D Amendment
filed on July 17, 2007.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 8 of 11
Item 4. Purpose of Transaction
-------------------------------
Item 4 is amended to add the following:
Pursuant to the terms of the Conversion and Support Agreement dated July 16,
2007, as described in the last filed Schedule 13D Amendment on July 17, 2007,
the Reporting Persons effected the conversion of the 10.0% Senior Convertible
Notes of the Issuer in the aggregate principal amount of $17,580,875 into
2,704,747 shares of Common Stock at a conversion price of $6.50 per share.
The information set forth in this Item 4 is qualified in its entirety by
reference to the Conversion and Support Agreement dated July 16, 2007,
attached as Exhibit B to the Schedule 13D Amendment filed on July 17, 2007,
and is incorporated by reference herein in its entirety.
Item 5. Interest in Securities of the Issuer
---------------------------------------------
Item 5 of the Schedule 13D is hereby amended as follows:
(a),(b) According to an update provided by the Issuer October 3, 2007, there
were 19,593,711 shares of Common Stock issued and outstanding as of October 3,
2007. Based on such information, after taking into account the transactions
described in Item 5(c) below, the Reporting Persons report beneficial
ownership of the following shares of Common Stock: (i) 1,605,414 shares of the
Common Stock held by Blum LP and RCBA Inc. on behalf of the limited
partnerships for which Blum LP serves as the general partner, or on behalf of
an entity for which Blum LP serves as investment advisor, which represents
8.2% of the outstanding shares of the Common Stock; (ii) 11,770 shares of the
Common Stock held by Blum GP on behalf of the limited partnership for which it
serves as the general partner, which represents 0.1% of the outstanding shares
of the Common Stock; and (iii) 2,007,166 shares of the Common Stock held by
Blum GP II on behalf of the limited partnership for which it serves as the
general partner and on behalf of the limited partnership for which it serves
as the managing limited partner, which represents 10.2% of the outstanding
shares of the Common Stock.
Voting and investment power concerning the above shares are held solely by
Blum LP, Blum GP and Blum GP II. The Reporting Persons therefore may be
deemed to be members in a group, in which case the group would be deemed to
have beneficial ownership of an aggregate of 3,624,350 shares of the Common
Stock, which is 18.5% of the outstanding Common Stock. As the sole general
partner of Blum LP, RCBA Inc. is deemed the beneficial owner of the securities
over which Blum LP has voting and investment power. The filing of this
Schedule shall not be construed as an admission that any of the shareholders,
directors or executive officers of RCBA Inc. or the managing members and
members of Blum GP and Blum GP II, is, for any purpose, the beneficial owner
of any of the securities that are beneficially owned by RCBA Inc., Blum GP, or
Blum GP II.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 9 of 11
Pursuant to the Conversion and Support Agreement and under the scenario that
the Reporting Persons convert the Series A Preferred Stock of the Issuer into
Common Stock (see the Schedule 13D Amendment filed by the Reporting Persons on
July 17, 2007), the Reporting Persons may be deemed to have beneficial
ownership of and exercise shared voting and dispositive power over 34,901
shares of Series A Preferred Stock, which are convertible into approximately
1,681,764 shares of Common Stock. The Reporting Persons may thus be deemed to
have beneficial ownership of 5,306,115 shares or 24.9% of the Common Stock, as
follows:
(i) Blum LP and RCBA Inc. may be deemed to have beneficial ownership of
2,564,378 shares, which represents 12.1% on an as converted basis;
(ii) Blum GP II may be deemed to have beneficial ownership of 2,729,967
shares, which represents 12.8% on an as converted basis; and
(iii) Blum GP may be deemed to have beneficial ownership of 11,770 shares,
which represents 0.1% on an as converted basis.
(c) The Reporting Persons effected the following transactions in the
securities of the Issuer during the last 60 days:
As described in Item 4 above, the Reporting Persons converted the 10.0% Senior
Convertible Notes of the Issuer into shares of Common Stock, as follows:
Conversion Principal # of Shares
Entity Date Amount Issued
------- ---------- ----------- -----------
Investment partnerships for 10/02/07 $10,024,875 1,162,461
which Blum LP serves as the
general partner.
Conversion Principal # of Shares
Entity Date Amount Issued
------- ---------- ----------- -----------
The limited partnerships for 10/01/07 $7,556,000 1,542,286
which Blum GP II serves as the
general partner and the managing
limited partner.
(d) Not applicable.
(e) Not applicable.
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 10 of 11
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Issuer
----------------------------------------------------------------------
There have been no changes to Item 6 since the last Schedule 13D Amendment
filed on July 17, 2007.
Item 7. Material to be Filed as Exhibits
-----------------------------------------
Exhibit A - Joint Filing Undertaking
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 11 of 11
SIGNATURES
After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.
Dated: October 4, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its general partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP, L.L.C. BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ---------------------------
Gregory D. Hitchan, General Gregory D. Hitchan, General
Counsel and Member Counsel and Managing Member
BLUM STRATEGIC PARTNERS II, L.P. STINSON CAPITAL PARTNERS, L.P.
By: Blum Strategic GP II, L.L.C., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -----------------------------
Gregory D. Hitchan, General Partner, Chief Operating Officer,
Counsel and Managing Member General Counsel and Secretary
STINSON CAPITAL PARTNERS II, L.P. STINSON CAPITAL PARTNERS (QP), L.P.
By: Blum Capital Partners, L.P., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc. By: Richard C. Blum & Associates, Inc.
its General Partner its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
* * * * * *
CUSIP NO. 69357C503 SCHEDULE 13D Page 1 of 1
Exhibit A
JOINT FILING UNDERTAKING
The undersigned, being duly authorized thereunto, hereby execute this
agreement as an exhibit to this Schedule 13D to evidence the agreement of the
below-named parties, in accordance with the rules promulgated pursuant to the
Securities Exchange Act of 1934, to file this Schedule jointly on behalf of
each such party.
Dated: October 4, 2007
RICHARD C. BLUM & ASSOCIATES, INC. BLUM CAPITAL PARTNERS, L.P.
By: Richard C. Blum & Associates, Inc.
its general partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary
BLUM STRATEGIC GP, L.L.C. BLUM STRATEGIC GP II, L.L.C.
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- ---------------------------
Gregory D. Hitchan, General Gregory D. Hitchan, General
Counsel and Member Counsel and Managing Member
BLUM STRATEGIC PARTNERS II, L.P. STINSON CAPITAL PARTNERS, L.P.
By: Blum Strategic GP II, L.L.C., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc.
its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
---------------------------- -----------------------------
Gregory D. Hitchan, General Partner, Chief Operating Officer,
Counsel and Managing Member General Counsel and Secretary
STINSON CAPITAL PARTNERS II, L.P. STINSON CAPITAL PARTNERS (QP), L.P.
By: Blum Capital Partners, L.P., By: Blum Capital Partners, L.P.,
its General Partner its General Partner
By: Richard C. Blum & Associates, Inc. By: Richard C. Blum & Associates, Inc.
its General Partner its General Partner
By: /s/ Gregory D. Hitchan By: /s/ Gregory D. Hitchan
------------------------------- -----------------------------------
Gregory D. Hitchan Gregory D. Hitchan
Partner, Chief Operating Officer, Partner, Chief Operating Officer,
General Counsel and Secretary General Counsel and Secretary