<SEC-DOCUMENT>0000921895-24-000725.txt : 20240327
<SEC-HEADER>0000921895-24-000725.hdr.sgml : 20240327
<ACCEPTANCE-DATETIME>20240327171240
ACCESSION NUMBER:		0000921895-24-000725
CONFORMED SUBMISSION TYPE:	DFAN14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20240327
DATE AS OF CHANGE:		20240327

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMERISERV FINANCIAL INC /PA/
		CENTRAL INDEX KEY:			0000707605
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		ORGANIZATION NAME:           	02 Finance
		IRS NUMBER:				251424278
		STATE OF INCORPORATION:			PA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11204
		FILM NUMBER:		24791825

	BUSINESS ADDRESS:	
		STREET 1:		MAIN & FRANKLIN STS
		STREET 2:		PO BOX 430
		CITY:			JOHNSTOWN
		STATE:			PA
		ZIP:			15907
		BUSINESS PHONE:		8145335300

	MAIL ADDRESS:	
		STREET 1:		MAIN & FRANKLIN STS
		STREET 2:		PO BOX 430
		CITY:			JOHNSTOWN
		STATE:			PA
		ZIP:			15907

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Driver Management Co LLC
		CENTRAL INDEX KEY:			0001756372
		ORGANIZATION NAME:           	
		IRS NUMBER:				831994022
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DFAN14A

	BUSINESS ADDRESS:	
		STREET 1:		250 PARK AVENUE
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10177
		BUSINESS PHONE:		212-572-4811

	MAIL ADDRESS:	
		STREET 1:		250 PARK AVENUE
		STREET 2:		7TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10177
</SEC-HEADER>
<DOCUMENT>
<TYPE>DFAN14A
<SEQUENCE>1
<FILENAME>dfan14a12447006_03272024.htm
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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>UNITED
STATES</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SECURITIES
AND EXCHANGE COMMISSION</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Washington,
D.C. 20549</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 16pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>SCHEDULE
14A</B></FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">(Rule
14a-101)</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">INFORMATION REQUIRED IN PROXY STATEMENT</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0">SCHEDULE 14A INFORMATION</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">(Amendment No. )</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Filed by the Registrant &#9744;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Filed by a Party other than the Registrant &#9746;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Check the appropriate box:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Preliminary Proxy Statement</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Definitive Proxy Statement</TD></TR></TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Definitive Additional Materials</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9746;</TD><TD>Soliciting Material Under &sect; 240.14a-12</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; font: 10pt Times New Roman, Times, Serif; width: 100%">
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    <TD STYLE="width: 100%; text-align: center; vertical-align: top; border-bottom: Black 0.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">AMERISERV FINANCIAL, INC.</P>
</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top"><P>(Name of Registrant as Specified In Its Charter)</P>

</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 0.5pt solid"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DRIVER MANAGEMENT COMPANY LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">DRIVER OPPORTUNITY PARTNERS I LP</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">J. ABBOTT R. COOPER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">KEITH R. MESTRICH</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center">BETTY SILFA</P>
</TD></TR>
<TR STYLE="vertical-align: top; text-align: left">
    <TD STYLE="text-align: center; vertical-align: top"><P>(Name of Persons(s) Filing Proxy Statement, if other than the Registrant)</P>

</TD></TR>
</TABLE>

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<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">Payment of Filing Fee (Check all boxes that apply):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9746;</TD><TD>No fee required</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Fee paid previously with preliminary materials</TD></TR></TABLE>



<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;</P>

<P STYLE="margin-top: 0; margin-bottom: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top"><TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9744;</TD><TD>Fee computed on table in exhibit required by Item 25(b) per Exchange Act Rules 14a-6(i)(1) and 0-11</TD></TR></TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">Driver Management Company
LLC (&ldquo;Driver Management&rdquo;), together with the other participants named herein (collectively, &ldquo;Driver&rdquo;), intends
to file a preliminary proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission to be used
to solicit votes for the election of director nominees and certain business proposals at the 2024 annual meeting of shareholders of AmeriServ
Financial, Inc., a Pennsylvania corporation (the &ldquo;Company&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 0.5in">On March 26, 2024, J. Abbot
R. Cooper, Managing Member of Driver Management, was quoted in the following article published by American Banker:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Banks targeted by activist investors brace for
proxy season</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">By John Reosti</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Blue Foundry Bancorp in Rutherford, New Jersey, is
battling with Larry Seidman, the veteran activist investor &mdash; over a word count.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The $2 billion-asset Blue Foundry recently rejected
Seidman&rsquo;s shareholder proposal urging management to engage an investment banker to explore a merger or sale later this summer because
it was too long, 518 words, just over the maximum of 500.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Seidman, however, said Blue Foundry never informed
him about its word-count guidelines, which included counting hyphenated words, each letter in acronyms, even symbols like dollar and percentage
signs as separate words. In drafting the proposal, Seidman used Google Docs&rsquo; word-count feature which counted 500 words.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">When he did learn the rules &mdash; from Blue Foundry&rsquo;s
letter to the Securities and Exchange Commission explaining its decision to reject the proposal &mdash; Seidman said he edited the text
down to about 485 words, only to have the company inform him the shortened version came in after its proposal deadline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;They told the SEC they had no obligation to
tell me how they counted the words,&rdquo; Seidman said in an interview. &ldquo;Therefore, I&rsquo;m too late with my last proposal, so
they want it excluded. &hellip; To me, it&rsquo;s a disgrace, but I&rsquo;m not going away.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Blue Foundry had not responded to requests for comment
by deadline.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">According to Seidman, the SEC possesses authority
to set aside Blue Foundry&rsquo;s action and allow his proposal to be added to the proxy ballot. It has yet to rule on the issue. &ldquo;I
have no idea what the SEC is going to do. I&rsquo;m waiting to hear,&rdquo; Seidman said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Blue Foundry&rsquo;s objections to the wording of
Seidman&rsquo;s shareholder proposal come after a Delaware Court of Chancery judge ordered the company to pay Seidman $224,000 in legal
fees for improperly refusing to allow him to review its books and records.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;After Blue Foundry declined to produce a single
document to Plaintiff, forcing him to commence litigation, Blue Foundry took a series of litigation positions that, when viewed collectively,
were glaringly egregious,&rdquo; Vice Chancellor Morgan Zurn wrote in a July decision.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For Seidman, who has been investing in the bank space
for more than 40 years, it&rsquo;s all old hat. &ldquo;I&rsquo;ve been doing this since 1983. It hasn&rsquo;t changed.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As the industry approaches what is known commonly
as proxy season, the springtime period when most public companies convene annual meetings, activist investors continue to pursue proxy
fights with community banks that typically push back &mdash; hard.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Another case in point: Driver Management&rsquo;s contest
with the Johnstown, Pennsylvania-based AmeriServ Financial, which appears to be every bit as bitter as the one Seidman is waging against
Blue Foundry. There, too, the sides are involved in a legal struggle over AmeriServ&rsquo;s move last year invalidating three nominees
Driver put forward to serve as directors. Judge Stephanie Haines of the U.S. District Court for the Western District of Pennsylvania dismissed
Driver&rsquo;s lawsuit in December. Driver appealed to the U.S. Court of Appeals for the Third Circuit in January.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">AmeriServ reported a full-year 2023 loss totaling
$3.3 million in January, despite achieving solid fourth-quarter growth in loans and wealth management revenues. CEO Jeff Stopko blamed
the loss in part on the cost of the Driver litigation. &ldquo;[Driver managing member Abbott Cooper&rsquo;s] complaints about the amount
of money AmeriServ has been forced to spend in litigation are tough to swallow given that he has been the source of all of this litigation
 &mdash; and given that the Company&rsquo;s actions have been validated by a federal court,&rdquo; Stopko wrote in a February letter addressed
to AmeriServ employees and filed with the SEC.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In its fourth-quarter and full-year 2023 earnings
report released in late January, AmeriServ estimated it paid $2.2 million in Driver-related legal fees last year. An AmeriServ spokesman
declined to comment for this story.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">To Cooper, Driver Management&rsquo;s managing member,
the $1.4 billion-asset AmerServ&rsquo;s stiff resistance comes as no surprise. &ldquo;The banks with the worst governance, those are the
ones that fight,&rdquo; Cooper said in an interview.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;The board is focused 100% of the time in fighting
with me. That&rsquo;s their priority,&rdquo; Cooper added.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stopko, in his February letter, argued Cooper&rsquo;s
interests lie in short-term gain, not promoting AmeriServ&rsquo;s long-term benefit. &ldquo;Driver has a history of buying community bank
stocks and then substantially exiting its positions after a short period of time,&rdquo; Stopko wrote. &ldquo;We do not find such actions
to be those of a shareholder-aligned investor.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cooper, who sued several of the community banks he
challenged in past campaigns, said it was AmeriServ that triggered things by rejecting his 2023 board candidates, Julius Rudolph, Brandon
Simmons and himself.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;What in my history made them think I wouldn&rsquo;t
respond&rdquo; with a lawsuit? Cooper said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For banks, the prospect of a proxy challenge presents
enormous challenges. Activists don&rsquo;t play. They typically seek major changes, in board composition, strategy, even control of the
company, so they can&rsquo;t be taken lightly. At the same time, a proxy defense almost always results in a hit to the bottom line.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>The attorneys weigh in </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">That activist investors aren&rsquo;t necessarily unbiased
sources in commenting on companies&rsquo; managements and boards is putting things mildly, said Paul Schulman, senior managing director
of the mergers-and-acquisitions and activism advisory group at Morrow Sodali in New York.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Most boards in my experience are thoughtful
and earnestly doing what they believe is best for shareholders,&rdquo; Schulman wrote in an email to American Banker. &ldquo;Just because
it&rsquo;s a different view than the activist doesn&rsquo;t make them hostile. &ldquo;We have seen situations where the activist has not
complied with the standard procedures for nominating directors or has not had a strong slate of nominees. The board has justifiably defended
itself.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The disclosures and other provisions companies require
to put a proposal on a corporate ballot or nominate a director candidate serve a valid purpose, Kai Liekefett, co-chair of Sidley&rsquo;s
shareholder activism and corporate defense practice, said in an interview. They &ldquo;enable the board of the company in question to
make an informed decision as to whether or not to recommend in favor&rdquo; of a proposal or nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Born and educated in Germany, Liekefett said he began
paying attention to shareholder activism after observing Vodafone&rsquo;s 1999-2000 hostile takeover of the German-based conglomerate
Mannesmann AG. Over time, his practice scope, which originally included merger-and-acquisition work, narrowed to just shareholder activism.
 &ldquo;I do nothing else,&rdquo; said Liekefett, who has represented 159 companies in proxy fights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;That doesn&rsquo;t mean the activists are always
wrong,&rdquo; Liekefett added. &ldquo;There are a significant number of community banks who are underperforming and have depressed share
prices.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>New ballot, new problems</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">While sparring with banks&rsquo; boards and management
may seem all in a day&rsquo;s work for longtime investors like Seidman and Cooper, Liekefett said the clashes weren&rsquo;t always so
rancorous. Liekefett attributed the uptick in negativity to the universal proxy ballot the SEC introduced in 2021. Prior to that, companies
and activists would print separate ballot cards listing only their candidates. The universal proxy rule requires both activists and companies
to list all candidates on their ballots. The aim was to give shareholders a wider degree of choice, permitting them to split ballots.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">But it has also led to a heightened level of personal
criticism, according to Liekefett.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Before, proxy fights were more slate-based.
It was the company slate or the [activist] slate,&rdquo; Liekefett said. &ldquo;Now, the temptation is larger to directly attack the credentials
of the individual candidates, not just make the overall case for change.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liekefett helped pioneer the strategy of challenging
an activist&rsquo;s director nomination paperwork as part of his defense of Seattle-based HomeStreet in 2019. Though it was two years
before the universal proxy, Liekefett said he and his team identified a number of significant disclosure errors that helped the $9.3 billion-asset
HomeStreet beat back an activist&rsquo;s challenge.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The practice has become more routine since then.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Indeed, First Foundation challenged the disclosures
of two director candidates Cooper had nominated as part of his campaign against the $13.3 billion-asset company in 2023.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">First Foundation in Dallas sought to invalidate the
nominations, prompting Cooper to sue in Delaware&rsquo;s Court of Chancery. The sides reached a settlement allowing one of Cooper&rsquo;s
candidates &mdash; the second had withdrawn her name from consideration &mdash; on the ballot.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Ironically, when the votes were finally counted in
June, shareholders handed Cooper a resounding defeat.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Legally, &ldquo;First Foundation saw the writing on
the wall and accepted our candidate, then we got waxed,&rdquo; Cooper admitted. &ldquo;We got creamed.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Going on a year later, Cooper is refighting the same
battle but this time against AmeriServ, challenging that bank&rsquo;s decision to invalidate his 2023 nominees. Cooper, moreover, is convinced
AmeriServ will ultimately bar his 2024 slate, of himself, Keith Mestrich, the former CEO of New York-based Amalgamated Bancorp, and veteran
commercial lender Betty Silfa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;I&rsquo;d be shocked&rdquo; if AmeriServ allows
the names on the ballot, Cooper said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Last year, AmeriServ refreshed its board, adding Rick
Bloomingdale, the former president of the Pennsylvania AFL-CIO, and David Hickton, a former U.S. attorney and a cybersecurity expert.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a tactic, challenging activists&rsquo; director
nominees has yielded results, but it also carries risk.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;If you get sued and you lose in court, you
can be assured shareholders will not look lightly on your attempt to disenfranchise them,&rdquo; Liekefett said. &ldquo;I guess what I
am saying is, if you invalidate a shareholder nomination for legal reasons, you cannot lose in court,&rdquo; Liekefett added.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;If you lose in court, you lose the proxy fight
along with it. &hellip; It&rsquo;s a tactic that is typically reserved for the most egregious cases.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Casting a wide net</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">According to Diligent Market Intelligence, a New York-based
software-as-a-service firm focused on corporate governance, 550 U.S.-based public companies dealt with activist investor campaigns, up
about 8% from the prior year. Diligent, which published its Market Intelligence&rsquo;s Shareholder Activism Annual Review for 2024 last
month, added that the number of companies identifying activism as a risk in their corporate disclosures is also on the upswing. About
23% of the companies in the Russell 3000 index did so in 2023, up from 21% in 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Larger banks are certainly not immune from activist
investors targeting them. But recent campaigns aimed at these mega institutions have frequently revolved around social issues, most prominently
climate change, as opposed to board seats and questions of control. During the 2023 proxy season, activists such as the Sierra Foundation
sought commitments from banks to reduce the financing they provide to the fossil-fuel industry. They also demanded more detailed disclosures
about how banks plan to meet 2030 greenhouse gas emissions targets.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The opposite is essentially true for the community
banking sector. In general, these institutions are too small to attract this type of attention from groups seeking to make social or political
statements. They also generally don&rsquo;t warrant the intervention of high-profile activists, such as Carl Icahn, Nelson Peltz and Daniel
Loeb, according to Liekefett, who has defended some of the country&rsquo;s largest corporations from activists.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Instead, these smaller institutions attract activist
investors who believe that executives and boards are shorting shareholders by mismanaging their companies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">It&rsquo;s a common thread that connects many of the
recent activist-bank episodes. In 2018, before its campaign unraveled as a result of disclosure issues, Dallas-based investor group Blue
Lion Capital attacked HomeStreet for its mortgage-banking emphasis as well as its expansion plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following year, in February 2019, New York-based
HoldCo Asset Management released a scathing letter blasting the board of Berkshire Hills Bancorp for a lack of transparency about key
actions as well as a &ldquo;history of value destructive strategic decisions.&rdquo; The letter, which also chided Berkshire Hills for
 &ldquo;failing to evaluate strategic alternatives,&rdquo; led to the company&rsquo;s agreement a month later to add two directors, including
Misha Zaitzeff, HoldCo&rsquo;s cofounder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Perhaps the best-known activist situation in recent
years has involved the $5.9 billion-asset Republic First Bancorp in Philadelphia, which began in late 2021 when Cooper challenged then-CEO
Vernon Hill&rsquo;s plans to conduct what he termed a &ldquo;highly dilutive capital raise.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cooper exited the scene after a second investor group,
led by New Jersey insurance executive George Norcross, sought control of Republic First, ultimately waging a long and bitter struggle
first with Hill, who resigned as CEO in July 2022, then with a board faction led by the company&rsquo;s founder, Harry Madonna.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Norcross-led group&rsquo;s bid to win control
of Republic First was a relatively unusual event. It&rsquo;s more common for activist investors to press bank management teams to look
for a buyer, believing that the institution could make more and better serve customers as part of a larger entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">That said, at least one other company, New York-based
Carver Bancorp, is dealing with an unsolicited offer from an investor to gain a controlling stake. Carver, one of the nation&rsquo;s most
prominent Black-owned banks, became embroiled in an activist campaign last year, after Dream Chasers Capital Group offered to pay $3.25-per-share
to acquire a 35% stake in the $743 million-asset lender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Though Carver reported a $1.9 million loss for 2023,
and Dream Chasers&rsquo; offer represented a significant premium over Carver&rsquo;s share price at the time it was proposed, the board
rejected it. Carver directors cited Dream Chasers&rsquo; &ldquo;unsubstantiated financial resources&rdquo; and an &ldquo;anticipated inability&rdquo;
to obtain regulatory approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;A comprehensive review of the Dream Chasers
proposal found it to be wholly deficient with respect to structural details, implied valuation, dilution, and the basic disclosure of
financial and managerial resources,&rdquo; Carver stated in a January press release.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Dream Chasers did not provide a comment for this story.
Besides the takeover bid, the investment firm has also suggested the bank sell. Dream Chasers said in a press release from January that
Carver could provide a more complete suite of financial services products to minority communities by merging with an already identified,
though unnamed &ldquo;Wall Street based minority owned broker-dealer.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the press release, Dream Chasers added a few statements
that it directed at Carver&rsquo;s board, including &ldquo;shareholders own companies and their interest should always come first&rdquo;
and &ldquo;that a company can serve its community and make money at the same time.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Like Carver, Blue Foundry posted a 2023 loss, totaling
$7.4 million. Blue Foundry reported a $2.4 million profit for 2022. Its 2022 return on assets was 0.11%, well below the industry average
of 1.11%, according to the Federal Deposit Insurance Corp.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In a conference call with analysts in January, Chief
Financial Officer Kelly Pecoraro attributed the 2023 loss to a significant jump in funding costs, which outstripped a narrower rise in
interest income. Though banks industrywide were similarly impacted during that same time period, Seidman was less understanding. Seidman
labeled Blue Foundry as &ldquo;one of the worst performing financial institutions in the country.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;They just keep losing money,&rdquo; Seidman
said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Seidman also objected to the bonuses and incentives
the company has given CEO Jim Nesci, as well as other directors and senior executives. Seidman views them as out-of-proportion to Blue
Foundry&rsquo;s bottom-line results.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;Pay for performance is all I know,&rdquo; Seidman
said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The attention Seidman paid to compensation tracks
a trend which saw activists focus more closely on pay issues in 2023. According to Diligent, 81 companies faced what it termed remuneration-related
demands, up from 59 in 2022.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In a May 2023 regulatory filing, Blue Foundry stated
its compensation policies are consistent with those of other recently converted mutual banks, adding they were developed with the assistance
of Pearl Meyer, a nationally recognized, Boston-based compensation consulting firm.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Of the smaller-scale investors who are active in the
community banking space, Seidman&rsquo;s name is among the most prominent. &ldquo;He&rsquo;s been around the block for decades,&rdquo;
Liekefett said. &ldquo;He&rsquo;s obsessed and dedicated to community banking. He calls it out when he sees what he believes is significant
underperformance.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a former depositor-owned bank, Blue Foundry is
prevented by regulation from seeking a sale within three years of its stock conversion. Seidman&rsquo;s proposal asks depositors to push
for a deal once the three-year moratorium ends in July. If Blue Foundry succeeds in keeping the proposal off the 2024 proxy ballot, Seidman
promises he&rsquo;ll resubmit it in 2025. &ldquo;If it doesn&rsquo;t happen this year, it will happen next year, and they&rsquo;re still
going to be losing money,&rdquo; Seidman said.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the same time, Seidman insists he is not surprised
by the company&rsquo;s resistance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&ldquo;If I was performing the way they perform,
I wouldn&rsquo;t want anyone to challenge me.&rdquo;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: center">CERTAIN INFORMATION CONCERNING THE PARTICIPANTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">Driver Management Company LLC (&ldquo;Driver
Management&rdquo;), together with the other participants named herein (collectively, &ldquo;Driver&rdquo;), intends to file a preliminary
proxy statement and accompanying WHITE universal proxy card with the Securities and Exchange Commission to be used to solicit votes for
the election of director nominees and certain business proposals at the 2024 annual meeting of shareholders of AmeriServ Financial, Inc.,
a Pennsylvania corporation (the &ldquo;Company&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">DRIVER STRONGLY ADVISES ALL SHAREHOLDERS OF
THE COMPANY TO READ ANY PROXY MATERIALS AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS
WILL BE AVAILABLE AT NO CHARGE ON THE SEC&rsquo;S WEB SITE AT HTTP://WWW.SEC.GOV. IN ADDITION, THE PARTICIPANTS IN THIS PROXY SOLICITATION
WILL PROVIDE COPIES OF PROXY MATERIALS WITHOUT CHARGE, WHEN AVAILABLE, UPON REQUEST.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">The participants in the proxy solicitation
are currently anticipated to be Driver Management, Driver Opportunity Partners I LP (&ldquo;Driver Opportunity&rdquo;), J. Abbott R. Cooper,
Keith R. Mestrich and Betty Silfa.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify">As of the date hereof, the participants in
the proxy solicitation beneficially own in the aggregate 628,003 shares of Common Stock, par value $0.01 per share, of the Company (the
 &ldquo;Common Stock&rdquo;). As of the date hereof, Driver Opportunity directly beneficially owns 628,003 shares of Common Stock, including
1,000 shares held in record name. Driver Management, as the general partner of Driver Opportunity, may be deemed to beneficially own
the 628,003 shares of Common Stock directly beneficially owned by Driver Opportunity. Mr. Cooper, as the managing member of Driver Management,
may be deemed to beneficially own the 628,003 shares of Common Stock directly beneficially owned by Driver Opportunity. As of the date
hereof, neither Mr. Mestrich nor Ms. Silfa beneficially own any securities of the Company.</P>

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