EXHIBIT 2.1
AMENDED AND RESTATED AGREEMENT AMONG SHAREHOLDERS
This Amended and Restated Agreement Among Shareholders (the
"Agreement"), is made and entered into as of this 21st day of February, 1997, by
and among those individuals whose names are set forth on Schedule 1 attached
hereto, each a ("Shareholder" and collectively the "Shareholders") and OutSource
International, Inc., a Florida corporation ("OSI").
BACKGROUND
The Shareholders own all of the outstanding stock in the amounts and of
those corporations identified on Schedule 1 attached hereto (the
"Corporations"). Each of the Corporations is an "S Corporation" (as hereinafter
defined) except OutSource International of America, Inc. As of August 6, 1996,
the Shareholders executed an agreement (the "Original Agreement") whereby the
Shareholders agreed, for their individual benefit and for the benefit of all of
the other Shareholders, to contribute at a future date their shares in each of
the Corporations (sometimes collectively hereinafter referred to as the
"Shares") to OSI in exchange for newly issued shares of OSI common stock, par
value $0.001 per share (the "OSI Shares") in the amounts set forth on Schedule 2
attached hereto. As a result of the exchange of shares pursuant to the terms of
this Agreement, the status of each Corporation as an S Corporation will
terminate as of the date hereof.
The Shareholders desire to amend and restate the Original Agreement to,
INTER ALIA, set a definitive date of exchange for their Shares, provide for the
payment of cash by OSI to certain of the Shareholders, in the amounts set forth
on the attached Schedule 2.1, in addition to the OSI Shares being delivered, and
provide for the indemnification of the Shareholders and the Corporation for
certain potential federal and state income tax liabilities in connection with
the termination of each Corporation's status as an S Corporation.
NOW THEREFORE in consideration of the foregoing premises and for other
good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged the parties agree as follows:
1. Each of the Shareholders has reviewed the attached Schedules 1 and 2
(the "Schedules") and hereby represents, warrants and covenants to all of the
other Shareholders and to OSI that said Schedules accurately reflect their
ownership interests in each of the Corporations, and the number of newly issued
shares of common stock to be received by them in OSI (the "OSI Shares"). Each of
the Shareholders further represents and warrants that, except as described on
Schedule 3 attached hereto, such Shareholder has no claim of an interest in any
other entities affiliated with the Corporations, which conduct a business which
is either the same as or similar to the business conducted by the Corporations.
2. EXCHANGE. Each of the Shareholders agrees that as of the date
hereof, all of their Shares in each of such Corporations will be conveyed to OSI
in return for the number of OSI Shares reflected on Schedule 2 attached hereto
and cash and promissory notes in the amounts
set forth on Schedule 2.1; provided, however, that the OSI Shares issued to all
of the Shareholders other than Paul M. Burrell, Robert A. Lefcort and the Robert
A. Lefcort Irrevocable Trust dated February 28, 1996 shall be issued in the name
of the voting trustees pursuant to that certain Voting Trust Agreement by and
among OSI, the Trustees and certain shareholders of OSI dated February 21, 1997.
3. REPRESENTATIONS AND WARRANTIES. Each Shareholder hereby represents
and warrants to all of the other Shareholders and to OSI as follows:
a. AUTHORITY. Such Shareholder has full power and authority to
execute and deliver this Agreement, and to perform his or her
obligations hereunder. This Agreement has been duly and
validly executed and delivered by such Shareholder, and
represents a valid and legally binding obligation of such
Shareholder, enforceable in accordance with its terms.
b. SHARES. The Shares issued to such Shareholder have been duly
issued and are fully paid and nonassessable.
c. OWNERSHIP. Such Shareholder is the sole record and beneficial
owner of the Shares described on Schedule 1, as owned by such
Shareholder, and, except as set forth on Schedule 4 hereto,
such Shares are free and clear of all liens, encumbrances,
options, warrants, rights, contracts, calls, commitments,
equities, demands, and claims of every kind.
d. NONCONTRAVENTION. The execution, delivery, and performance of
this Agreement, by such Shareholder does not and will not:
i. result in the breach of any term, condition or
provision of, or constitute a default under, or
require the consent of a party to, any material
agreement or commitment to which any of such
Shareholder is a party or by which such Shareholder
or his or her property is bound; or
ii. require the consent or approval of, or declaration or
filing with, any federal, state, municipal, or other
governmental agency or authority.
e. PURCHASE ENTIRELY FOR OWN ACCOUNT. The OSI Shares are being
acquired for the account of such Shareholder for investment
purposes only and not for the account of any other person, and
not with a view to distribution, assignment or resale to
others or to fractionalization in whole or in part. Except as
set forth on Schedule 4, no other person has or will have a
direct or indirect beneficial interest in the OSI Shares.
f. RESTRICTED SECURITIES. Such Shareholder acknowledges and
agrees that there is no public market for the OSI Shares and
that the OSI Shares may not be
2
sold, transferred, or otherwise disposed of without
registration under the Securities Act of 1933, as amended (the
"Act"), or in the opinion of counsel for OSI, an exemption
from the registration requirements of the Act and applicable
state securities laws is available.
g. ACCESS TO INFORMATION. Such Shareholder has been furnished
access to the business records of OSI and all of its
affiliated entities, and such additional information and
documents as such Shareholder has requested, and has been
afforded an opportunity to ask questions of and receive
answers from representatives of OSI concerning the terms and
conditions of this Agreement and the OSI Shares.
h. RISK OF INVESTMENT. Such Shareholder recognizes that an
investment in OSI involves substantial risks and represents
that he has taken full cognizance of and understands all of
the risks related to the acquisition of the OSI Shares. Such
Shareholder has such knowledge and experience in financial and
business matters such that he is capable of evaluating the
merits and risks of purchasing the OSI Shares. Such
Shareholder has carefully considered and has, to the extent he
believes such discussion to be necessary, discussed with his
professional legal, tax and financial advisers the suitability
of an investment in OSI, and such Shareholder has determined
that the OSI Shares are a suitable investment. Such
Shareholder's financial condition is such that he is able to
bear the risk of holding the OSI Shares purchased for an
indefinite period of time and he can afford to suffer the
complete loss of his investment in the OSI Shares.
i. SURVIVAL OF REPRESENTATION AND WARRANTIES. The representations
and warranties made by the Shareholders hereunder are true and
accurate as of the date hereof and shall survive thereafter.
4. INDEMNIFICATION. Each Shareholder, severally and not jointly, agrees
that should such Shareholder breach any representation, warranty or covenant in
this Agreement, such Shareholder shall indemnify and hold the other Shareholders
and OSI harmless from any and all liability, loss, damage, claim or expense of
any kind and of whatever nature, including all costs and attorneys fees, arising
from any of such Shareholder's breach of this Agreement.
5. TAX INDEMNIFICATION.
a. INDEMNIFICATION BY OSI OF SHAREHOLDERS FOR TAX LIABILITIES.
OSI shall indemnify, defend and hold harmless each Shareholder with respect to
any "OSI Indemnification Amount" (as defined below) if, by reason of an amended
return, claim for refund, audit or otherwise, there should occur a net increase
in a Shareholder's allocated share of a Corporation's taxable income resulting
from a shift in items of income or gain from a Corporation's Post-Exchange
Period to a Corporation's Pre-Exchange Period or a shift in items of loss,
deductions or credit from a Corporation's Pre-Exchange Period to a Corporation's
Post-Exchange Period. The OSI Indemnification Amount shall be 39.6% of such
increase in the Shareholder's allocated
3
share of a Corporation's taxable income. The OSI Indemnification Amount shall
include any penalties or interest assessed against the Shareholders by any
Taxing Authority.
b. SHAREHOLDERS INDEMNIFICATION OF OSI FOR TAX LIABILITIES. Each of
the Shareholders hereby agrees to indemnify, defend and hold harmless OSI with
respect to the "Shareholder Indemnification Amount" (defined below) if, by
reason of an amended return, claim for refund, audit or otherwise, there should
occur a net decrease in the Shareholder's allocated share of a Corporation's
taxable income resulting from either (i) a shift in items of income or gain from
a Corporation's Pre-Exchange Period to a Corporation's Post-Exchange Period, or
from a shift in items of loss, deduction or credit from a Corporation's
Post-Exchange Period to a Corporation's Pre-Exchange Period, or (ii) a
Corporation being determined to be a C corporation rather than an S corporation
for all or a portion of the Pre-Exchange Period. The Shareholder Indemnification
Amount shall be 39.6% of such decrease in the Shareholder's allocated share of
the Corporation's taxable income. The Shareholder Indemnification Amount shall
include any penalties or interest assessed against OSI or any of the
Corporations by any Taxing Authority. Notwithstanding the foregoing, however,
the Shareholder Indemnification Agreement arising under this section 5(b)(ii)
shall not exclude the amount of any federal income tax refund received by such
Shareholder as a result of a Corporation's status as a C corporation during the
Pre-Exchange Period.
c. LIABILITY FOR ADDITIONAL TAXES ATTRIBUTABLE TO PRE-EXCHANGE
PERIOD. Each of Shareholders covenant and agree that, to the extent additional
taxes, penalties and interest are imposed on them and represent amounts for
which they are to be indemnified hereunder, they shall pay to the respective
Taxing Authorities or otherwise satisfy (such as by way of offset) any and all
such additional taxes, penalties and interest that are attributable to any
increase in the taxable income of a Corporation and which they are required to
pay or satisfy relative to the Pre-Exchange Period.
d. LIABILITY FOR ANY ADDITIONAL TAXES ATTRIBUTABLE TO POST-EXCHANGE
PERIOD. OSI covenants and agrees that, to the extent that additional taxes,
penalties and interest may be imposed on OSI or a Corporation and represent
amounts for which it is to be indemnified hereunder, it shall pay to the
respective Taxing Authorities or otherwise satisfy (such as by way of offset)
any and all such additional taxes, penalties and interest that are attributable
to taxable income of a Corporation which it is required to pay or satisfy
relative to all taxable periods that are included within the Post-Exchange
Period.
e. PAYMENTS. The Shareholders or OSI, as the case may be, shall make
any payment required under this Agreement within seven (7) days after written
notice of the obligation to the appropriate Taxing Authority has either become
final or, notwithstanding the pendency or availability of any further tax
contest, must otherwise be paid.
f. SUBROGATION. The party (or parties) providing the indemnity under
either Section 5.a. or Section 5.b (defined solely for purposes of this Section
5.f. as the "Indemnifying Party") shall be subrogated to all rights of recovery
(the "Subrogation Claims") that the party (or parties) being indemnified under
Section 5.a. or Section 5.b., respectively (defined solely for purposes of this
Section 5.f. as the "Indemnified Party"), may have against any person or
4
organization in respect of the tax liabilities for which the Indemnifying Party
is providing indemnity. Such right of subrogation shall not exceed the amount
paid by the Indemnifying Party to the Indemnified Party. The Indemnified Party
shall execute and deliver instruments and papers and do whatever else is
reasonably necessary to secure such rights of subrogation for the Indemnifying
Party. The Indemnified Party shall provide all reasonable assistance as
requested by the Indemnifying Party in order for the Indemnifying Party to
pursue the Subrogation Claims. The Indemnified Party shall use its best efforts
not to do anything after any Subrogation Claim arises to prejudice the rights of
the Indemnifying Party.
g. NOTICES OF AUDITS AND ADJUSTMENTS.
(i) If any Shareholder receives notice of an intention by a
Taxing Authority to audit any return of the Shareholder that includes any item
of income, gain, deduction, loss or credit reported by a Corporation with
respect to that Corporation's Pre-Exchange Period, such Shareholder shall inform
OSI, in writing, of the audit promptly after receipt of such notice. If any
Shareholder receives notice from a Taxing Authority of any proposed adjustment
for which OSI may be required to indemnify the Shareholder hereunder (a
"Proposed Adjustment"), the Shareholder shall give notice to OSI of the Proposed
Adjustment promptly after receipt of such notice from a Taxing Authority. Upon
receipt of such notice from a Shareholder, OSI may, by in turn giving prompt
written notice to each of the Shareholders, request that the Shareholders
contest such Proposed Adjustment. If OSI shall request that any Proposed
Adjustment be contested, then the Shareholders shall contest the Proposed
Adjustment or permit OSI and its representatives, at OSI's request and expense,
to contest the Proposed Adjustment (including pursuing all administrative and
judicial appeals and processes). OSI shall pay all costs and expenses (including
attorneys' and accountants' fees) that the Shareholders may incur in contesting
such Proposed Adjustments. No Shareholder shall make, accept or enter into a
settlement or other compromise with respect to any taxes indemnified hereunder,
or forego or terminate any proceeding undertaken hereunder without the consent
of OSI, which consent shall not be unreasonably withheld. If such consent is
withheld by OSI and the ultimate settlement, compromise or resolution results in
an increase in the Shareholder Indemnification Amount from that which have
resulted from the settlement, compromise or resolution for which OSI's consent
was requested, the Shareholders shall have no liability with respect to such
increase.
(ii) If OSI receives notice of an intention by a Taxing Authority
to audit any return of OSI that includes any item of income, gain, deduction,
loss or credit reported by OSI where an adjustment in such return could result
in one party or the other being called upon to provide indemnification
hereunder, OSI shall inform the Shareholders, in writing, of the audit promptly
after receipt of such notice. If OSI receives notice from a Taxing Authority of
any proposed adjustment for which any of the Shareholders may be required to
indemnify OSI hereunder (an "OSI Proposed Adjustment"), OSI shall give notice to
each of the Shareholders of the OSI Proposed Adjustment promptly after receipt
of such notice from a Taxing Authority. Upon receipt of such notice from OSI,
any of the Shareholders may, by in turn giving prompt written notice to OSI,
request that OSI contest such OSI Proposed Adjustment. If any of the
Shareholders shall request that any OSI Proposed Adjustment be contested, then
OSI shall contest the OSI Proposed Adjustment or permit the Shareholders and
their representatives, at the
5
Shareholders' request and expense, to contest the OSI Proposed Adjustment
(including pursuing all administrative and judicial appeals and processes) at
the Shareholders' expense and shall permit the Shareholder to participate in
such proceeding. OSI shall not make, accept, or enter into a settlement or other
compromise with respect to any taxes indemnified hereunder, or forego or
terminate any proceeding undertaken hereunder without the consent of the
Shareholders, which consent shall not be unreasonably withheld. If such consent
is withheld by the Shareholders and the ultimate settlement, compromise or
resolution results in an increase in the OSI Indemnification Amount from that
which have resulted from the settlement, compromise or resolution for which the
Shareholders' consent was requested, OSI shall have no liability with respect to
such increase.
h. DEFINITIONS. For purposes of this Agreement, the following terms
have the following meanings:
"C Corporation" has the meaning set forth in Section 1361(a)(2) of
the Code.
"Code" means the Internal Revenue Code of 1986, as amended.
"Post-Exchange Period" means the period commencing as of the date
hereof.
"Pre-Exchange Period" means, with respect to a Corporation, the
period commencing on the first date that such Corporation was an S Corporation
and ending as of the date hereof.
"S Corporation" has the meaning set forth in Section 1361(a)(1) of
the Code.
"Taxing Authority" or "Taxing Authorities" means the applicable
federal and/or state taxing authority or authorities.
6. PLAN OF SHARE EXCHANGE. The Shareholders hereby approve the Plan of
Share Exchange by and among the Corporations and OSI in substantially the form
attached as Exhibit "A" hereto.
7. POWER OF ATTORNEY. The Shareholders hereby make, constitute and
appoint Louis J. Morelli (or his assignee or designee appointed in writing) as
their true and lawful agent and attorney-in-fact, with full power of
substitution and full power and authority, in their name, place and stead to
execute any and all documents necessary to consummate the transactions
contemplated by this Agreement, that certain Securities Purchase Agreement by
and among OSI, certain affiliates thereof, and certain purchasers listed
therein, dated February 21, 1997, and that certain Credit Agreement dated
February 21, 1997 by and among OSI, certain affiliates thereof, and Bank of
Boston Connecticut, as Agent.
6
8. MISCELLANEOUS.
a. COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which
counterparts collectively shall constitute an instrument representing the
Agreement between the parties hereto.
b. CONSTRUCTION OF TERMS. Nothing herein expressed or implied is
intended, or shall be construed, to confer upon or give any person, firm or
corporation, other than the parties hereto or their respective successors and
assigns, any rights or remedies under or by reason of this Agreement.
c. COST OF ENFORCEMENT; INTEREST. If, within ten (10) days after
demand to comply with the obligations of one of the parties to this Agreement
served in writing on the other, compliance or reasonable assurance of compliance
is not forthcoming, and the other party engages the services of an attorney to
enforce rights under this Agreement, the prevailing party in any action shall be
entitled to recover all reasonable costs and expenses (including reasonable fees
of attorneys and legal assistants, whenever incurred, whether before trial or
appellate proceeding, at trial, on appeal or otherwise).
d. GOVERNING LAW. This Agreement shall be governed by, and construed
and enforced in accordance with the laws of the State of Florida, other than
those provisions relating to the conflict of laws of different jurisdictions if
the effect of the application of such provisions would be to cause the laws of a
jurisdiction other than Florida to apply hereto.
e. JURISDICTION; VENUE. The parties agree that jurisdiction and
venue for any litigation arising out of this Agreement or any document delivered
in connection herewith shall be in the Seventeenth Judicial Circuit of Florida
or the United States District Court for the Southern District of Florida, Fort
Lauderdale Division.
f. NOTICES. All notices and other communications required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given when received, if personally delivered; when transmitted, if
transmitted by electronic fax, telecopy or similar electronic transmission
method; the day after it is sent, if sent by recognized expedited delivery
service; and five (5) days after it is sent, if mailed, first class mail,
postage prepaid. In each case, notice shall be sent, if to OSI, at the address
set forth below, or if to a Shareholder, at the address for such Shareholder set
forth on the attached Schedule 1, or to such other address as any party shall
have specified by notice in writing to the other parties:
If to OSI: 1144 East Newport Center Drive
Deerfield Beach, Florida 33442
Attention: Robert A. Lefcort
Telephone - (954) 418-6576
Fax - (954) 418-3365
7
Copy to: Holland & Knight LLP
One East Broward Boulevard, Suite 1300
Fort Lauderdale, FL 33301
Attention: Steven Sonberg
Telephone - (954) 468-7816
Fax - (954) 463-2030
g. AMENDMENT AND MODIFICATION. This Agreement may be amended,
modified or supplemented only by a written agreement executed by all of the
parties hereto.
h. ASSIGNMENT. This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefit of the parties hereto and their
respective heirs, successors and permitted assigns, but neither this Agreement
nor any of the rights, interests or obligations hereunder shall be assigned by
any of the parties hereto without the prior written consent of the other
parties, nor is this Agreement intended to confer upon any other person except
the parties any rights or remedies hereunder.
i. INTERPRETATION. The title, article and section headings contained
in this Agreement are solely for the purpose of reference, are not part of the
agreement of the parties and shall not in any way affect the meaning or
interpretation of this Agreement.
j. SEVERABILITY. In the event that any one or more of the provisions
of this Agreement shall be held to be illegal, invalid or unenforceable in any
respect, the same shall not in any respect affect the validity, legality or
enforceability of the remainder of this Agreement, and the parties shall use
their best efforts to replace such illegal, invalid or unenforceable provisions
with an enforceable provision approximating, to the extent possible, the
original intent of the parties.
k. ENTIRE AGREEMENT. This Agreement embodies the entire agreement
and understanding of the parties hereto in respect of the subject matter
contained herein. There are no representations, promises, warranties, covenants,
or undertakings, other than those expressly set forth or referred to herein.
This Agreement supersedes all prior agreements and the understandings between
the parties with respect to such subject matter.
REMAINDER OF PAGE LEFT BLANK INTENTIONALLY
8
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date above first written.
Witnesses: Shareholders:
/s/ COREEN S. BRUNO /s/ LAWRENCE H. SCHUBERT
- -------------------------- --------------------------------------
Lawrence H. Schubert as Trustee of the
Lawrence H. Schubert Revocable Trust
dated August 25, 1995
/s/ COREEN S. BRUNO /s/ NADYA i. SCHUBERT
- -------------------------- --------------------------------------
Nadya I. Schubert as Trustee of the
Nadya I. Schubert Revocable Trust
dated August 25, 1995
/s/ COREEN S. BRUNO /s/ ALAN E. SCHUBERT
- -------------------------- --------------------------------------
Alan E. Schubert
/s/ COREEN S. BRUNO /s/ LOUIS A. MORELLI
- -------------------------- --------------------------------------
Louis A. Morelli
/s/ COREEN S. BRUNO /s/ PAUL M. BURRELL
- -------------------------- --------------------------------------
Paul M. Burrell
/s/ COREEN S. BRUNO /s/ RAYMOND S. MORELLI
- -------------------------- --------------------------------------
Raymond S. Morelli
/s/ COREEN S. BRUNO /s/ LOUIS J. MORELLI
- -------------------------- --------------------------------------
Louis J. Morelli
9
/s/ COREEN S. BRUNO /s/ LOUIS A. MORELLI
- -------------------------- -------------------------------------------
Louis A. Morelli as Trustee of the Louis J.
Morelli S Stock Trust dated January 1, 1995
/s/ COREEN S. BRUNO /s/ MARGARET MORELLI JANISCH
- -------------------------- --------------------------------------
Margaret Morelli Janisch
/s/ COREEN S. BRUNO /s/ LOUIS A. MORELLI
- -------------------------- --------------------------------------
Louis A. Morelli as Trustee of the
Margaret Ann Janisch S Stock Trust dated
January 1, 1995
/s/ COREEN S. BRUNO /s/ MATTHEW B. SCHUBERT
- -------------------------- --------------------------------------
Matthew B. Schubert
/s/ COREEN S. BRUNO /s/ JASON D. SCHUBERT
- -------------------------- --------------------------------------
Jason D. Schubert as Co-Trustee of the
Matthew Schubert OutSource Trust dated
November 24, 1995
/s/ COREEN S. BRUNO /s/ ALAN E. SCHUBERT
- -------------------------- --------------------------------------
Alan E. Schubert as Co-Trustee of the
Matthew Schubert OutSource Trust dated
November 24, 1995
/s/ COREEN S. BRUNO /s/ MATHEW B. SCHUBERT
- -------------------------- --------------------------------------
Matthew B. Schubert as Co-Trustee of the
Jason Schubert OutSource Trust dated
November 24, 1995
10
/s/ COREEN S. BRUNO /s/ ALAN E. SCHUBERT
- -------------------------- -------------------------------------------
Alan E. Schubert as Co-Trustee of the Jason
Schubert OutSource Trust dated November 24,
1995
/s/ COREEN S. BRUNO /s/ MINDI WAGNER
- -------------------------- --------------------------------------
Mindi Wagner
/s/ COREEN S. BRUNO /s/ ROBERT A. LEFCORT
- -------------------------- --------------------------------------
Robert A. Lefcort
/s/ COREEN S. BRUNO /s/ ROBERT A. LEFCORT
- -------------------------- --------------------------------------
Robert A. Lefcort as Co-Trustee of the
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996
/s/ COREEN S. BRUNO /s/ NADYA I. SCHUBERT
- -------------------------- --------------------------------------
Nadya I. Schubert as Co-Trustee of the
Robert A. Lefcort Irrevocable Trust dated
February 28, 1996
OUTSOURCE INTERNATIONAL, INC.
Attest:
/s/ ROBERT A. LEFCORT By: /s/ PAUL M. BURRELL
- -------------------------- ----------------------------------
Robert A. Lefcort, Secretary Paul M. Burrell, President
11
SCHEDULE 1
CAPITAL STAFFING FUND, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 1,062.50
- ---------------------------------------------------------------------------
Louis A. Morelli 1,012.50
- ---------------------------------------------------------------------------
Paul M. Burrell 1,212.50
- ---------------------------------------------------------------------------
Raymond S. Morelli 50.00
- ---------------------------------------------------------------------------
Louis J. Morelli 39.25
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 82.30
- ---------------------------------------------------------------------------
Matthew B. Schubert 8.98
- ---------------------------------------------------------------------------
Mindi Wagner 50.00
- ---------------------------------------------------------------------------
Robert A. Lefcort 100.00
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 606.25
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 606.25
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 50.00
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 10.75
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 17.70
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 50.00
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 41.02
===========================================================================
SCHEDULE 1
EMPLOYEES INSURANCE SERVICES, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 82.66
- ---------------------------------------------------------------------------
Louis A. Morelli 44.67
- ---------------------------------------------------------------------------
Paul M. Burrell 30.63
- ---------------------------------------------------------------------------
Raymond S. Morelli 14.69
- ---------------------------------------------------------------------------
Louis J. Morelli 11.53
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 14.69
- ---------------------------------------------------------------------------
Matthew B. Schubert 3.16
- ---------------------------------------------------------------------------
Mindi Wagner 3.08
- ---------------------------------------------------------------------------
Robert A. Lefcort 6.31
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 31.44
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 31.43
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 3.16
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 17.59
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 14.43
===========================================================================
SCHEDULE 1
OUTSOURCE FRANCHISING, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 2,618.00
- ---------------------------------------------------------------------------
Louis A. Morelli 1,413.00
- ---------------------------------------------------------------------------
Paul M. Burrell 970.00
- ---------------------------------------------------------------------------
Raymond S. Morelli 465.00
- ---------------------------------------------------------------------------
Louis J. Morelli 365.00
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 465.00
- ---------------------------------------------------------------------------
Matthew B. Schubert 100.00
- ---------------------------------------------------------------------------
Mindi Wagner 97.00
- ---------------------------------------------------------------------------
Robert A. Lefcort 200.00
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 998.00
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 100.00
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 556.50
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 456.50
===========================================================================
SCHEDULE 1
OUTSOURCE INTERNATIONAL, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 2,356,020
- ---------------------------------------------------------------------------
Louis A. Morelli 1,273,500
- ---------------------------------------------------------------------------
Paul M. Burrell 873,000
- ---------------------------------------------------------------------------
Raymond S. Morelli 418,500
- ---------------------------------------------------------------------------
Louis J. Morelli 328,500
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 418,500
- ---------------------------------------------------------------------------
Matthew B. Schubert 90,000
- ---------------------------------------------------------------------------
Mindi Wagner 87,660
- ---------------------------------------------------------------------------
Robert A. Lefcort 180,000
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 895,950
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 895,950
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 90,000
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 90,000
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 90,000
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 501,210
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 411,210
===========================================================================
SCHEDULE 1
OUTSOURCE INTERNATIONAL OF AMERICA, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 261.78
- ---------------------------------------------------------------------------
Louis A. Morelli 141.50
- ---------------------------------------------------------------------------
Paul M. Burrell 97.00
- ---------------------------------------------------------------------------
Raymond S. Morelli 46.50
- ---------------------------------------------------------------------------
Louis J. Morelli 36.50
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 46.50
- ---------------------------------------------------------------------------
Matthew B. Schubert 10
- ---------------------------------------------------------------------------
Mindi Wagner 9.74
- ---------------------------------------------------------------------------
Robert A. Lefcort 20
- ---------------------------------------------------------------------------
Robert A. Lefcort Revocable Trust dated 10
February 28, 1996
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 99.55
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 99.55
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 10
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 10
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 10
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 55.69
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 45.69
===========================================================================
SCHEDULE 1
SYNADYNE I, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 82.66
- ---------------------------------------------------------------------------
Louis A. Morelli 44.67
- ---------------------------------------------------------------------------
Paul M. Burrell 30.63
- ---------------------------------------------------------------------------
Raymond S. Morelli 14.69
- ---------------------------------------------------------------------------
Louis J. Morelli 11.53
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 14.69
- ---------------------------------------------------------------------------
Matthew B. Schubert 3.16
- ---------------------------------------------------------------------------
Mindi Wagner 3.08
- ---------------------------------------------------------------------------
Robert A. Lefcort 6.31
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 31.44
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 31.43
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 3.16
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 17.59
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 14.43
===========================================================================
SCHEDULE 1
SYNADYNE II, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 2,618.00
- ---------------------------------------------------------------------------
Louis A. Morelli 1,415.00
- ---------------------------------------------------------------------------
Paul M. Burrell 970.00
- ---------------------------------------------------------------------------
Raymond S. Morelli 465.00
- ---------------------------------------------------------------------------
Louis J. Morelli 365.00
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 465.00
- ---------------------------------------------------------------------------
Matthew B. Schubert 100.00
- ---------------------------------------------------------------------------
Mindi Wagner 97.00
- ---------------------------------------------------------------------------
Robert A. Lefcort 200.00
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 100.00
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 556.50
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 456.50
===========================================================================
SCHEDULE 1
SYNADYNE III, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 82.66
- ---------------------------------------------------------------------------
Louis A. Morelli 44.67
- ---------------------------------------------------------------------------
Paul M. Burrell 30.63
- ---------------------------------------------------------------------------
Raymond S. Morelli 14.69
- ---------------------------------------------------------------------------
Louis J. Morelli 11.53
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 14.69
- ---------------------------------------------------------------------------
Matthew B. Schubert 3.16
- ---------------------------------------------------------------------------
Mindi Wagner 3.08
- ---------------------------------------------------------------------------
Robert A. Lefcort 6.31
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 31.44
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 31.43
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 3.16
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 3.16
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 17.59
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 14.43
===========================================================================
SCHEDULE 1
SYNADYNE IV, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 2,618.00
- ---------------------------------------------------------------------------
Louis A. Morelli 1,415.00
- ---------------------------------------------------------------------------
Paul M. Burrell 970.00
- ---------------------------------------------------------------------------
Raymond S. Morelli 465.00
- ---------------------------------------------------------------------------
Louis J. Morelli 365.00
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 465.00
- ---------------------------------------------------------------------------
Matthew B. Schubert 100.00
- ---------------------------------------------------------------------------
Mindi Wagner 97.00
- ---------------------------------------------------------------------------
Robert A. Lefcort 200.00
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 100.00
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 556.50
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 456.50
===========================================================================
SCHEDULE 1
SYNADYNE V, INC.
===========================================================================
NUMBER OF SHARES
OF COMMON STOCK OWNED
NAME OF SHAREHOLDER AS OF FEBRUARY 21, 1997
- ---------------------------------------------------------------------------
Alan E. Schubert 2,618.00
- ---------------------------------------------------------------------------
Louis A. Morelli 1,415.00
- ---------------------------------------------------------------------------
Paul M. Burrell 970.00
- ---------------------------------------------------------------------------
Raymond S. Morelli 465.00
- ---------------------------------------------------------------------------
Louis J. Morelli 365.00
- ---------------------------------------------------------------------------
Margaret Ann Morelli Janisch 465.00
- ---------------------------------------------------------------------------
Matthew B. Schubert 100.00
- ---------------------------------------------------------------------------
Mindi Wagner 97.00
- ---------------------------------------------------------------------------
Robert A. Lefcort 200.00
- ---------------------------------------------------------------------------
Lawrence H. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Nadya I. Schubert Revocable Trust
dated August 25, 1995 996.00
- ---------------------------------------------------------------------------
Robert A. Lefcort Irrevocable Trust
dated February 28, 1996 100.00
- ---------------------------------------------------------------------------
Louis J. Morelli S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Margaret Ann Janisch S-Stock Trust
dated January 1, 1995 100.00
- ---------------------------------------------------------------------------
Jason Schubert OutSource Trust
dated November 24, 1995 556.50
- ---------------------------------------------------------------------------
Matthew Schubert OutSource Trust
dated November 24, 1995 456.50
===========================================================================
21
SCHEDULE 2
OSI SHARES AFTER "ROLL-UP"
SHAREHOLDER OSI SHARES
- -------------------------------------------------------------------------
Lawrence H. Schubert Trust 783,123
Nadya I. Schubert Trust 783,123
Alan E. Schubert 2,202,602
Louis A. Morelli, Sr. 1,092,561
Paul M. Burrell 909,615
Raymond S. Morelli 402,255
Louis J. Morelli 315,749
Louis J. Morelli Trust 86,507
Margaret Janisch 404,310
Margaret Janisch Trust 86,948
Matthew B. Schubert 86,394
Matthew Schubert Trust 394,698
Jason D. Schubert Trust 481,092
Mindi Wagner 86,763
Robert A. Lefcort 178,007
Robert A. Lefcort Trust 89,003
SCHEDULE 2.1
PRINCIPAL
AMOUNT OF
PROMISSORY
SHAREHOLDER CASH($) NOTE ($)
- ------------------------------------------------------------------------
Lawrence H. Schubert Trust 1,114,000 407,000
Nadya I. Schubert Trust 1,113,000 408,000
Alan E. Schubert 958,000 605,000
Louis A. Morelli, Sr. 2,522,000 0
Paul M. Burrell 0 0
Raymond S. Morelli 0 0
Louis J. Morelli 0 0
Louis J. Morelli Trust 0 0
Margaret Janisch 0 0
Margaret Janisch Trust 0 0
Matthew B. Schubert 0 0
Matthew Schubert Trust 0 0
Jason D. Schubert Trust 0 0
Mindi Wagner 0 0
Robert A. Lefcort 0 0
Robert A. Lefcort, Trust 0 0
SCHEDULE 3
1. Interest in the following entities are owned solely by those
equityholders listed below, and none of such interests shall be transferred to
OSI:
NAME OF EQUITY EQUITYHOLDERS
---------------------------------------------------------------
SMSB, Inc., a Florida corporation Louis A. Morelli, Alan E.
Schubert, Lawrence H. Schubert
and Paul M. Burrell
SMSB, Associates, Ltd., a Florida Louis A. Morelli, Alan E.
limited partnership Schubert, Lawrence H. Schubert
and Paul M. Burrell
2. The following corporations will be dissolved and shares therein
will not be transferred to OSI:
Labor World USA, Inc., a Florida corporation
Labor World, Inc. an Illinois corporation
3. Interest in the following entities are owned solely by those
equityholders instead. The active operations were sold to OutSource
International, Inc. in exchange for long-term notes.
NAME OF EQUITY
------------------------------------------------------------
EQUITYHOLDERS
-------------
All Temps, Inc. Louis A. Morelli, Alan E. Schubert
and Lawrence H. Schubert
WAD, Inc. Paul M. Burrell and Robert A. Lefcort
SCHEDULE 4
1. The following shares issued to the Lawrence H. Schubert Revocable Trust dated
August 25, 1996 are pledged to City National Bank of Florida.
NAME OF CORPORATION NO. OF SHARES
Capital Staffing Fund, Inc. 403.76
Labor World, Inc. 6.98
Labor World USA, Inc. 230.30
Outsource Franchising, Inc. 663.34
Synadyne I, Inc. 20.94
Synadyne II, Inc. 663.34
Synadyne III, Inc. 20.94
Synadyne IV, Inc. 663.34
Synadyne V, Inc. 663.34
2. The following shares issued to the Nadya I. Schubert Revocable Trust dated
August 25, 1996 are pledged to City National Bank of Florida.
NAME OF CORPORATION NO. OF SHARES
Outsource International of America, Inc. 66.36
3. The following shares issued to the Lawrence H. Schubert Revocable Trust dated
August 25, 1996 are pledged to American Chartered Bank.
NAME OF CORPORATION NO. OF SHARES
Outsource International of America, Inc. 99.55
4. The following shares issued to the Matthew Schubert OutSource Trust dated
November 24, 1995 are pledged to American Chartered Bank.
NAME OF CORPORATION NO. OF SHARES
Outsource International of America, Inc. 10.00