1
 Prospect Group Inc., 
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whose recent hostile tender offer for Recognition Equipment Inc. failed for lack of financing,
1
elaboration-additional-e

3
 apparently has gained a measure of control over the troubled company anyway.
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 As part of what a Recognition spokeswoman termed an amiable agreement, Prospect Group will wind up with control of top management posts and an increased stake in the maker of data management equipment.
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 In a management restructuring, Thomas L. Ringer resigned as chairman, chief executive and a director,
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 while Israel Sheinberg resigned as a director.
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 Mr. Sheinberg remains as executive vice president.
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 Thomas M. Hurley and Robert A. Vanourek, 
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who had been designated to take over Recognition's top spots 
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had Prospect's tender offer succeeded,
9
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 were named co-chief executives and directors. 
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Mr. Hurley was formerly a vice president and general manager of an Avery International division;
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 Mr. Vanourek was a former group vice president of Pitney Bowes Inc. 
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14
 In addition, the agreement calls for Gilbert H. Lamphere, chairman of Prospect Group's executive committee, to be named chairman of a restructured board 
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that will include four new independent directors.
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 Also named to the revised board was Thomas A. Loose, Recognition's senior vice president and general counsel.
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17
 Prospect, a New York-based leveraged buy-out firm, also agreed to invest $15 million in Recognition, 
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18
which in turn agreed to repurchase as much as $20 million of its stock.
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 That would increase Prospect's ownership of the company's fully-diluted shares outstanding to 20% from 14.1%.
18
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 Under the agreement, Prospect is permitted to increase its stake in Recognition to 30%.
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 Beyond that, Prospect said 
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it wouldn't offer to acquire additional shares for less than $11.25 a share during the next year or less than $14.06 a share during the subsequent two years.
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 Recognition also said
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 it obtained a commitment from Chemical Bank and Bank of Boston 
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to convert an estimated $18 million in bank debt to a new, 24-month secured term loan 
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to be repaid through the sale of certain assets.
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elaboration-object-attribute-e

27
 In August, Recognition said 
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it was in violation of certain terms of its debt agreements with bank lenders 
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because of a $3.9 million loss for the third quarter ended July 31.
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30
 The company attributed the loss to declining revenue and litigation costs 
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relating to criminal charges against the company and two former executives, William G. Moore Jr. and Robert W. Reedy.
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32
 The former executives were indicted last October on charges of fraud, theft and conspiracy 
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33
related to efforts by the company 
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to win $400 million in Postal Service contracts.
33
elaboration-object-attribute-e

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 Recognition Equipment said 
36
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36
it expected to put the agreement with Prospect to a vote of its stockholders at a special meeting in January. 
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37
 In New York Stock Exchange composite trading, Recognition rose 87.5 cents to $6.625.
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38
 Prospect slipped 25 cents to $10.50 in national over-the-counter trading.
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