* |
If the form is filed by more than one reporting person, see Instruction 5(b)(v). |
** |
Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a). |
(1) |
On June 26, 2011, Scientific Conservation, Inc., a Delaware corporation ("SCI"), Scrabble Acquisition, Inc., a Georgia corporation and a wholly-owned subsidiary of SCI ("Merger Sub"), and Servidyne, Inc., a Georgia corporation (the "Issuer") entered into an Agreement and Plan of Merger (the "Merger Agreement") pursuant to which Merger Sub will, subject to the satisfaction or waiver of the conditions therein, merge with and into the Issuer, with the Issuer continuing as the surviving corporation and as a wholly-owned subsidiary of SCI (the "Merger"). Concurrently, SCI entered into Voting and Support Agreements (the "Support Agreements") with shareholders holding an aggregate of approximately 56% of the outstanding voting power of the Issuer. (Continued in Footnote 2) |
(2) |
Shareholders holding approximately 28% of the outstanding voting power of the Issuer-including the Issuer's Chairman and Chief Executive Officer and its Executive Vice President and their affiliates-have executed Support Agreements pursuant to which such shareholders have agreed to vote in favor of the Merger, and against competing transactions, and have granted an irrevocable proxy to SCI with respect to these matters. Shareholders holding approximately 27% of the outstanding voting power of the Issuer have executed Support Agreements pursuant to which such shareholders have agreed to vote in favor of the Merger, and against competing transactions, and have granted a proxy to SCI; provided, however, these Support Agreements, and the related proxies, terminate upon the withdrawal or modification of the recommendation of the Issuer's board of directors to the shareholders to approve the Merger. (Continued in Footnote 3) |
(3) |
By virtue of the Support Agreements, the reporting person may be deemed to have voting power with respect to (and therefore beneficially own within the meaning of Rule 13d-3 under the Exchange Act) an aggregate of 2,204,116 shares of the Common Stock (including 150,916 shares issuable upon the exercise of options exercisable within 60 days of June 26, 2011 (the "Option Shares")) held by shareholders party to the Support Agreements, which represent approximately 57.6% of the sum of (i) 3,675,782 shares of Common Stock outstanding as of June 26, 2011, as represented by the Issuer in the Merger Agreement, and (ii) the Option Shares. (Continued in Footnote 4) |
(4) |
The reporting person hereby expressly disclaims any pecuniary interest in, and beneficial ownership of, shares of the Common Stock that are subject to the Support Agreements, and this report shall not be deemed an admission that such reporting person is the beneficial owner thereof for purposes Section 16 of the Exchange Act or for any other purpose. For additional information regarding the Support Agreements and the Merger Agreement, see the Schedule 13D filed by the reporting person with the Securities and Exchange Commission on the date hereof. |