SECURITIES PURCHASE AGREEMENT
among
AMERICAN SKIING COMPANY
AMERICAN SKIING COMPANY RESORT PROPERTIES, INC.
and
OAK HILL CAPITAL PARTNERS, L.P.
July 31, 2000
Table of Contents
ARTICLE 1 DEFINITIONS.......................................................2
1.1 Definitions.......................................................2
ARTICLE 2 PURCHASE AND SALE OF SECURITIES...................................5
2.1 Purchase and Sale of Securities...................................5
2.2 Issuance of Securities; Delivery..................................5
2.3 Purchase Price....................................................5
ARTICLE 3 REPRESENTATIONS, WARRANTIES AND COVENANTS OF
THE COMPANY AND ASCRP.............................................6
3.1 Organization, Authorization and Qualification of the Company and
ASCRP.............................................................6
3.2 Capital Stock of the Company and ASCRP............................6
3.3 No Conflict.......................................................6
3.4 Governmental Consents and Approvals...............................7
3.5 Compliance with Laws..............................................7
3.6 Full Disclosure...................................................7
ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF
THE PURCHASER.....................................................8
4.1 Organization and Authority of Each Purchaser......................8
4.2 No Conflict.......................................................8
4.3 Governmental Consents and Approvals...............................8
4.4 Investment Purpose................................................9
4.5 Status of Shares; Limitation on Transfer and Other Restrictions...9
ARTICLE 5 COVENANTS OF THE COMPANY AND ASCRP................................9
5.1 Further Action; Consents; Filings.................................9
5.2 Waiver............................................................9
5.3 Registration Rights...............................................9
ARTICLE 6 CONDITIONS TO CLOSING OF THE PURCHASER,
THE COMPANY AND ASCRP............................................10
6.1 Conditions to the Closing of each Party..........................10
6.2 Conditions to the Closing of the Purchaser.......................10
6.3 Conditions to the Closing of the Company and ASCRP...............10
ARTICLE 7 MISCELLANEOUS....................................................11
7.1 Notices..........................................................11
7.2 Headings.........................................................13
7.3 Severability.....................................................13
7.4 Entire Agreement.................................................13
7.5 Assignment.......................................................13
7.6 Amendment and Waiver.............................................13
7.7 Counterparts.....................................................13
7.8 Specific Performance.............................................14
7.9 Expenses.........................................................14
7.10 Governing Law....................................................14
SECURITIES PURCHASE AGREEMENT
SECURITIES PURCHASE AGREEMENT, dated July 31, 2000 (this "Agreement"), among
AMERICAN SKIING COMPANY, a Delaware corporation (the "Company"), AMERICAN SKIING
COMPANY RESORT PROPERTIES, INC., a Maine corporation and a wholly owned
subsidiary of the Company ("ASCRP"), and OAK HILL CAPITAL PARTNERS, L.P., a
Delaware limited partnership (the "Purchaser").
W I T N E S S E T H:
WHEREAS, the Company wishes to grant to the Purchaser, and the
Purchaser wishes to purchase from the Company, warrants to purchase six million
(6,000,000) validly issued, fully paid and nonassessable shares of common stock,
par value $.01 per share (the "Company Common Stock"), of the Company (the
"Warrant," in the form attached hereto as Exhibit A), at an exercise price of
$2.50 per share (subject to adjustment pursuant to the terms of the Warrant),
upon the terms and subject to the conditions set forth herein (including the
Company's receipt of the Waiver, as defined hereinafter);
WHEREAS, the Warrant will be issued as soon as the Company has received
the Waiver;
WHEREAS, if the Waiver is not received within sixty (60) days from the
date hereof, the Purchaser will instead purchase ASCRP Common Stock, upon the
terms and subject to the conditions set forth herein;
WHEREAS, the boards of directors of the Company and ASCRP have approved
this Agreement and the Warrant and the Amendment (the "Amendment to the
Stockholders' Agreement") to the Stockholders' Agreement, dated as of August 9,
1999 (the "Stockholders' Agreement"), among the Company, the Purchaser, Xxxxxx
X. Xxxxx and the other parties thereto;
NOW, THEREFORE, in consideration of the premises and the mutual
agreements and covenants hereinafter set forth, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company, ASCRP and the Purchaser hereby agree as follows:
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ARTICLE 1
DEFINITIONS
1.1 Definitions. As used in this Agreement, and unless he context
requires a different meaning, the following terms shall have the meanings set
forth below:
"Affiliate" means, with respect to any specified Person, any other
Person that directly, or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person.
"Agreement" means this Agreement as the same may be amended,
supplemented or modified in accordance with the terms hereof.
"Amendment to the Stockholders' Agreement" has the meaning assigned to
such term in the recitals to this Agreement.
"ASC Credit Agreement" means the Amended, Restated and Consolidated
Credit Agreement, dated as of October 12, 1999, among the Company, Bank Boston,
N.A. (as agent) and the other lenders party thereto, as amended to date.
"ASCRP" has the meaning assigned to such term in the recitals to this
Agreement.
"ASCRP Common Stock" means the common stock, par value $.01 per share,
of ASCRP.
"ASCRP Credit Agreement" means the Second Amended and Restated Credit
Agreement dated as of the date hereof among ASCRP, Fleet National Bank (as
agent), the Purchaser and the other lenders thereto.
"Business Day" means any day other than a Saturday, Sunday or other day
on which commercial banks in the State of New York are authorized or required by
law or executive order to close.
"Closing" has the meaning assigned to such term in Section 2.3.
"Closing Date" has the meaning assigned to such term in Section 2.3.
"Commission" means the Securities and Exchange Commission or any
similar agency then having jurisdiction to enforce the Securities Act.
"Company" has the meaning assigned to such term in the recitals to this
Agreement.
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"Company Common Stock" has the meaning assigned to such term in the
recitals to this Agreement.
"Date of Issuance" has the meaning assigned to such term in Section 2.2
"Encumbrance" means any security interest, pledge, mortgage, lien,
charge or encumbrance, but excluding Permitted Encumbrances.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"GAAP" means generally accepted accounting principals applied on a
consistent basis.
"Governmental Authority" means any United States federal, state, local,
supranational or any foreign government, governmental, regulatory or
administrative authority, agency or commission or any court, tribunal, or
judicial or arbitral body.
"Governmental Order" means any order, writ, judgment, injunction,
decree, stipulation, determination or award entered by or with any Governmental
Authority.
"Law" means any federal, state, local or foreign statute, law,
ordinance, regulation, rule, code, order, other requirement or rule of law.
"Material Adverse Effect" means any circumstance, change in, or effect
on the Company, any Company Subsidiary or their businesses or any resort
location that, individually or in the aggregate with any other circumstances,
changes in, or effects on, the Company, any Company Subsidiary or their
businesses or any resort location is, or is reasonably expected to be,
materially adverse to the business of the Company and the Company Subsidiaries,
taken as a whole, or the financial condition, results of operations, prospects,
assets or properties of the Company and the Company Subsidiaries, taken as a
whole, except for any changes or effects principally resulting from or
principally arising in connection with (i) any occurrence or condition affecting
the leisure industry generally or (ii) any changes in general economic
conditions.
"NYSE" means the New York Stock Exchange.
"Permitted Encumbrances" means such of the following as to which no
enforcement, collection, execution, levy or foreclosure proceeding shall have
been commenced or is reasonably expected to commence: (a) liens for taxes,
assessments and governmental charges or claims that are not yet delinquent or
that are being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted; provided, that, any reserve or other
appropriate provision as shall be required in conformity with GAAP shall have
been made therefor; (b) Encumbrances imposed by law, such as materialmen's,
mechanics', carriers', workmen's and repairmen's liens and other similar liens
arising in the ordinary course of business; (c) pledges or deposits to secure
obligations under workers' compensation laws or similar legislation or to secure
public or statutory obligations or other obligations of a like nature incurred
in the ordinary course of business; (d) minor survey exceptions, reciprocal
easement agreements and other customary encumbrances on title to real property
that (i) were not incurred in connection with any indebtedness, (ii) do not
render title to the property encumbered thereby unmarketable and (iii) do not,
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individually or in the aggregate, materially adversely affect the value or use
of such property for its current and anticipated purposes; (e) Encumbrances
permitted under any of the following agreements of the Company and/or any
Company Subsidiary (any Encumbrance which is permitted under any of the
following as to the Company or any Company Subsidiary shall be permitted as to
all Company Subsidiaries and the Company for purposes hereof): (i) the ASC
Credit Agreement, (ii) the Indenture dated as of June 28, 1996, as amended,
relating to the Company's Series A and B 12% Senior Subordinated Notes due 2006,
(iii) the ASCRP Credit Agreement and (iv) the Amended Loan and Security
Agreement dated as of September 30, 1998 and as it may be further amended from
time to time with Textron Financial Corporation; (g) precautionary liens filed
by lessors with respect to leased equipment; (h) any single or series of related
Encumbrances which are not in excess of $50,000 and do not materially impair the
value or use of the property subject thereto or the operation of the Company's
or ASCRP's, as the case may be, business as currently conducted; and (i)
Encumbrances listed on the UCC searches disclosed in Section 1.01(a) of the
Disclosure Schedule attached to the Preferred Stock Subscription Agreement dated
July 9, 1999 among the Company, the Purchaser and the other parties signatory
thereto.
"Person" means any individual, firm, corporation, partnership, limited
liability company, trust, incorporated or unincorporated association, joint
venture, joint stock company, Governmental Authority or other entity of any
kind.
"Purchaser" has the meaning assigned to such term in the recitals to
this Agreement.
"SEC" means the United States Securities and Exchange Commission.
"SEC Filings" means all forms, reports and documents required to be
filed by it with the SEC since the Company's initial public offering on November
6, 1997.
"Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder.
"Shares" has the meaning assigned to such term in Section 2.2 of this
Agreement.
"Stockholders' Agreement" has the meaning assigned to such term in the
recitals to this Agreement.
"Subsidiaries" of any Person means any corporation, partnership, joint
venture, limited liability company, trust, estate or other Person of which (or
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in which), directly or indirectly, more than 50% of (a) the issued and
outstanding capital stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether at the time
capital stock of any other class or classes of such corporation shall or might
have voting power upon the occurrence of any contingency), (b) the interest in
the capital or profits of such partnership, joint venture or limited liability
company or other Person or (c) the beneficial interest in such trust or estate
is at the time owned by such first Person, or by such first Person and one or
more of its other Subsidiaries or by one or more of such Person's other
Subsidiaries.
"Waiver" means the consent required pursuant to the ASC Credit
Agreement to permit the Company's issuance of the Warrant or the Company's
determination that such consent is not or is no longer required.
"Warrant" has the meaning assigned to such term in the recitals to this
Agreement.
ARTICLE 2
PURCHASE AND SALE OF SECURITIES
2.1 Purchase and Sale of Securities. Subject to the terms and
conditions set forth herein, the Purchaser agrees to purchase, and the Company
(subject to its receipt of the Waiver) and ASCRP agree to issue and sell, the
securities described below.
2.2 Issuance of Securities; Delivery. On the earlier of the Company's
receipt of the Waiver and September 29, 2000 (the "Date of Issuance"):
(i) if the Waiver has been received, the Company shall issue the
Warrant to the Purchaser; and
(ii) if the Waiver has not been received, ASCRP shall issue to the
Purchaser 17 shares of ASCRP Common Stock (the "Shares").
The Company or ASCRP (as applicable) shall on the Date of Issuance deliver the
securities being issued by it hereunder to the Purchaser.
2.3 Purchase Price. The aggregate purchase price to be paid by the
Purchaser for the Warrant or the Shares to be purchased, as the case may be,
is $2,000,000 in cash, payable by wire transfer of immediately available funds,
upon the closing of the Securities Purchase Agreement (the "Closing") which
will take place on July 31, 2000 (the "Closing Date"). Such amount will be
paid upon the Closing to ASCRP.
2.4 Option to Exchange. If the Purchaser receives Shares on the Date of
Issuance but the Company thereafter receives the Waiver, the Purchaser shall
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have the right, at any time from and after the Company's receipt of the Waiver
to the end of the Exercise Period (as defined in the Warrant), to exchange the
Shares for the Warrant.
ARTICLE 3
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE COMPANY AND ASCRP
As an inducement to the Purchaser to enter into this Agreement, the Company and
ASCRP each hereby represents and warrants to the Purchaser as follows:
3.1 Organization, Authorization and Qualification of the Company and
ASCRP. Each of the Company and ASCRP is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or organization, and each of the Company and ASCRP has all
necessary corporate power and authority to enter into this Agreement, to carry
out its obligations hereunder and to consummate the transactions contemplated
hereby. Each of the Company and ASCRP is duly qualified to do business and is
in good standing in each jurisdiction in which (x) it owns or leases
properties material to its operations or (y) the operation of its business
makes such qualification necessary, except, with respect to clause (y) above,
to the extent that the failure to be so qualified would not, individually or in
the aggregate, have a Material Adverse Effect. The execution and delivery of
this Agreement by the Company and ASCRP, the performance by the Company and
ASCRP of its obligations hereunder and the consummation by the Company and
ASCRP of the transactions contemplated hereby have been duly authorized by all
requisite action on the part of the Company and ASCRP, as the case may be. This
Agreement will be duly executed and delivered by the Company and ASCRP,
and (assuming due authorization, execution and delivery by the Purchaser)
this Agreement constitutes, a legal, valid and binding obligation of the
Company and ASCRP enforceable against each of the Company and ASCRP in
accordance with its terms. Neither the Company nor ASCRP is in violation of any
of the provisions of their respective articles of incorporation, by-laws or
equivalent organizational documents in any material respect.
3.2 Capital Stock of the Company and ASCRP. The Company Common Stock,
if and when issued upon exercise of the Warrant, in accordance with the terms of
this Agreement, will be duly authorized, fully paid and non-assessable and free
and clear of any lien. The ASCRP Common Stock, if and when issued in accordance
with the terms of this Agreement, will be duly authorized, fully paid and
non-assessable and free and clear of any lien.
3.3 No Conflict. Assuming the making and obtaining of all filings,
notifications, consents, approvals, authorizations and other actions referred to
in Section 3.4, except as may arise from facts or circumstances relating solely
to the Purchaser, the execution, delivery and performance of this Agreement and
the Warrant by the Company and ASCRP, as the case may be, do not and will not
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(a) violate, conflict with or result in the breach of any provision of the
articles of incorporation or by-laws (or similar organizational documents) of
the Company or ASCRP, (b) conflict with or violate any Law or Governmental Order
applicable to the Company, ASCRP or any of their respective assets, properties
or businesses, or (c) conflict with, result in any breach of, constitute a
default (or event which with the giving of notice or lapse of time, or both,
would become a default) under, require any consent under, or give to others any
rights of termination, amendment, acceleration, suspension, revocation or
cancellation of, or result in the creation of any Encumbrance on any of the
assets or properties of the Company or ASCRP pursuant to, any note, bond,
mortgage or indenture, contract, Agreement, lease, sublease, license, permit,
franchise or other instrument, obligation or arrangement to which the Company or
ASCRP is a party or by which any of their respective assets or properties is
bound or affected, except, with respect to clauses (b) and (c), as would not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
3.4 Governmental Consents and Approvals. The execution, delivery and
performance of this Agreement and the Warrant by the Company and ASCRP, as the
case may be, do not and will not require any consent, approval, authorization or
other order of, action by, filing with or notification to any Governmental
Authority, except (i) for the applicable requirements, if any, of the Exchange
Act, state securities or "blue sky" laws, and the NYSE and (ii) for such other
consents, approvals, authorizations, orders, actions, filings or notifications
which if not obtained or made would not be reasonably expected to result in a
Material Adverse Effect or to materially delay the consummation of the
transactions contemplated by this Agreement.
3.5 Compliance with Laws. Neither the Company nor ASCRP is in default
or violation of any Governmental Order, except for such defaults or violations
that would not, individually or in the aggregate, be reasonably expected to
result in a Material Adverse Effect.
3.6 Full Disclosure. The Company's SEC Filings and the information
supplied by the Company and ASCRP in this Agreement or the Warrant or any other
document, certificate, notice or consent related to any of the foregoing
delivered to the Purchaser in connection with the Agreement or the Warrant at
or prior to the Closing contains (or will contain) an untrue statement of a
material fact or omits (or will omit) to state a material fact required to be
stated therein or necessary to make the statements made, in light of the
circumstances in which made, not materially false or misleading.
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ARTICLE 4
REPRESENTATIONS AND WARRANTIES OF THE PURCHASE
As an inducement to the Company and ASCRP to enter into this
Agreement, the Purchaser represents and warrants to the Company and ASCRP as
follows:
4.1 Organization and Authority of Each Purchaser. The Purchaser
is a limited partnership duly organized, validly existing and in good standing
under the laws of its state of organization. The Purchaser has all necessary
power and authority to enter into this Agreement, to carry out its obligations
hereunder and to consummate the transactions contemplated hereby. The execution
and delivery of this Agreement by the Purchaser, the performance by the
Purchaser of its obligations hereunder and the consummation by the Purchaser
of the transactions contemplated hereby have been duly authorized by all
requisite action on the part of the Purchaser. This Agreement has been duly
executed and delivered by the Purchaser, and (assuming due authorization,
execution and delivery by the Company and ASCRP, as the case may be) this
Agreement constitutes a legal, valid and binding obligation of the Purchaser
enforceable against the Purchaser in accordance with its terms.
4.2 No Conflict. Assuming the making and obtaining of all filings,
notifications, consents, approvals, authorizations and other actions referred to
in Section 4.3, except as may result from any facts or circumstances relating
solely to the Company, the execution, delivery and performance of this Agreement
by the Purchaser does not and will not (a) violate, conflict with or result in
the breach of any provision of its certificate of limited partnership or by-laws
or similar organizational document of the Purchaser, (b) conflict with or
violate any Law or Governmental Order applicable to the Purchaser or (c)
conflict with, or result in any breach of, constitute a default (or event which
with the giving of notice or lapse or time, or both, would become a default)
under, require any consent under, or give to others any rights of termination,
amendment, acceleration, suspension, revocation, or cancellation of, or result
in the creation of any Encumbrance on any of the assets or properties of the
Purchaser pursuant to, any note, bond, mortgage or indenture, contract,
Agreement, lease, sublease, license, permit, franchise or other instrument or
arrangement to which the Purchaser is a party or by which any of such assets or
properties are bound or affected which, with respect to clauses (b) and (c)
above, would have a material adverse effect on the ability of the Purchaser to
consummate the transactions contemplated by this Agreement.
4.3 Governmental Consents and Approvals. The execution, delivery and
performance of this Agreement by the Purchaser does not and will not require any
consent, approval, authorization or other order of, action by, filing with, or
notification to, any Governmental Authority, except (i) for the applicable
requirements, if any, of the Exchange Act, state securities or "blue sky" laws
and (ii) for such other consents, approvals, authorizations, orders, actions,
filings or notifications, which if not obtained or made would not be reasonably
likely to be material to the Purchaser or materially delay the consummation of
the transactions contemplated by this Agreement.
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4.4 Investment Purpose. The Purchaser is acquiring the Warrant or the
Shares, as the case may be, for its own account solely for the purpose of
investment and not with a view to, or for offer or sale in connection with, any
distribution thereof.
4.5 Status of Shares; Limitation on Transfer and Other Restrictions.
The Purchaser understands that the Warrant, the Company Common Stock issuable
upon conversion of the Warrant and the Shares (the "Restricted Securities")
have not been and will not be registered under the Securities Act or under
any state securities laws (other than, in the case of the Warrant and the
Company Common Stock issued upon conversion of the Warrant, in accordance with
the Stockholders' Agreement) and are being offered and sold in reliance upon
federal and state exemptions for transactions not involving any public offering
and that the Restricted Securities have not been approved or disapproved by the
SEC or by any other federal or state agency. The Purchaser understands that
none of the Restricted Securities may be sold, transferred or assigned unless
registered by the Company or ASCRP, as the case may be, pursuant to the
Securities Act and any applicable state securities laws, or unless an exemption
therefrom is available, and, accordingly, it may not be possible for the
Purchaser to liquidate its investment in the Restricted Securities, and it
agrees not to sell, assign or otherwise transfer or dispose of any unless such
Restricted Securities have been so registered or an exemption from registration
is available.
ARTICLE 5
COVENANTS OF THE COMPANY AND ASCRP
5.1 Further Action; Consents; Filings. Each of the Company and ASCRP
shall (i) take, or cause to be taken, all appropriate action and do, or cause to
be done, all things necessary and proper or advisable under applicable Law to
consummate the transactions contemplated by this Agreement and (if issued) the
Warrant; (ii) seek to obtain from Governmental Authorities any consents,
licenses, permits, waivers, approvals, authorizations or orders required to be
obtained or made by the Company or ASCRP, as the case may be, in connection with
the authorization, execution and delivery of this Agreement and the Warrant and
the consummation of the transactions contemplated hereby and thereby; and (iii)
make all necessary filings, and thereafter make any other required submissions,
with respect to this Agreement and the Warrant and the transactions contemplated
hereby and thereby that are required under any applicable Law.
5.2 Waiver. The Company shall use its best efforts to obtain the Waiver
as promptly as practicable after the Closing Date. If the Waiver is not received
by the Date of Issuance, the Company shall continue to use its best efforts to
obtain the Waiver, in order to facilitate the Purchaser's exercise of its rights
under Section 2.4.
5.3 Registration Rights. Upon receipt of the Waiver, the holder(s) of
the Warrant shall have the same rights to register the resale of the Warrant and
10
the Company Common Stock into which it is exercisable as are granted to the
Purchaser in respect of the Company's 8.5% Series B Convertible Participating
Preferred Stock and the Company Common Stock, respectively, under the
Stockholders' Agreement, as amended.
ARTICLE 6
CONDITIONS TO CLOSING OF THE PURCHASER, THE COMPANY AND ASCRP
6.1 Conditions to the Closing of each Party. The obligations of the
Company, ASCRP and the Purchaser to consummate the transactions contemplated by
this Agreement and the Warrant are subject to the satisfaction or written waiver
(where permissible) of the condition that no Governmental Authority or court of
competent jurisdiction shall have enacted, threatened, issued, promulgated,
enforced or entered any Governmental Order that is then in effect, pending or
threatened and has, or would have, the effect of prohibiting consummation of the
transactions contemplated by this Agreement or the Warrant.
6.2 Conditions to the Closing of the Purchaser. The obligations
of the Purchaser to consummate the transactions contemplated by this Agreement
and the Warrant are subject to the satisfaction or written waiver (where
permissible) of the following conditions:
(a) At the Closing, the Company shall deliver or cause to be delivered
to the Purchaser: (i) a receipt for the aggregate purchase price paid by the
Purchaser for the Warrants or the Shares pursuant to Section 2.3 of this
Agreement and (ii) a legal opinion, addressed to the Purchaser and dated the
Closing Date, from Xxxxxx Xxxxxx, substantially in the form of Exhibit B;
(b) The representations and warranties of the Company and ASCRP
contained in this Agreement shall have been true and correct in all material
respects as of the Closing, (provided, however, that if any portion of any
representation or warranty is already qualified by materiality, for purposes of
determining whether this Section 6.2(b) has been satisfied with respect to such
portion of such representation or warranty, such portion of such representation
or warranty as so qualified must be true and correct in all respects) and the
covenants and agreements contained in this Agreement to be complied with by the
Company or ASCRP, as the case may be, on or before the Closing shall have been
complied with in all material respects;
(c) The closing of the ASCRP Credit Agreement shall have taken place;
and
(d) The Amendment to the Stockholders' Agreement shall have been duly
authorized, executed and delivered by the Company.
6.3 Conditions to the Closing of the Company and ASCRP. The obligations
of the Company and ASCRP to consummate the transactions contemplated by this
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Agreement and the Warrant are subject to the satisfaction or written waiver
(where permissible) of the following conditions:
(a) At the Closing the Purchaser shall deliver or cause to be
delivered to the Purchaser the aggregate purchase price paid by the Purchaser as
set forth in Section 2.3 of this Agreement;
(b) The representations and warranties of the Purchaser contained
in this Agreement shall have been true and correct in all material respects as
of the Closing;
(c) The closing of the ASCRP Credit Agreement shall have taken place;
and
(d) The Amendment to the Stockholders' Agreement shall have been duly
authorized, executed and delivered by the Purchaser.
ARTICLE 7
MISCELLANEOUS
7.1 Notices. All notices, demands and other communications provided for
or permitted hereunder shall be made in writing and shall be by registered or
certified first-class mail, return receipt requested, telecopier, courier
service or personal delivery:
(a) if to the Company or ASCRP:
American Skiing Company
Sunday Xxxxx Xxxx
Xxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxx
Xxxxxxxxxxx X. Xxxxxx
and
American Skiing Company
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxx, Xx., General Counsel
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with a copy to:
Shearman & Sterling
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxx, Esq.
E-mail: xxxxxx@xxxxxxxx.xxx
and a copy to:
Xxxxxx Xxxxxx
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxxxxx, Esq.
E-mail: xxxxxxxxx@xxxxxxxxxxxx.xxx
(b) if to the Purchaser to:
Oak Hill Capital Partners, L.P.
000 Xxxx Xxxxxx
Xxxx Xxxxx, Xxxxx 00000
Telecopy: (000) 000-0000
Attention: Xxx Xxxxxx
and
Oak Hill Capital Management, Inc.
Park Avenue Tower
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxxxxx
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxxxxx, Esq.
Email: dlakhdhir@paulweisscom
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All such notices, demands and other communications shall be deemed to have been
duly given when delivered by hand, if personally delivered; when delivered by
courier, if delivered by commercial courier service; five (5) Business Days
after being deposited in the mail, postage prepaid, if mailed; and when receipt
is mechanically acknowledged, if telecopied. Any party may by notice given in
accordance with this Section 7.1 designate another address or Person for receipt
of notices hereunder.
7.2 Headings. The descriptive headings contained in this Agreement are
for convenience of reference only and shall not effect in any way the meaning or
interpretation of this Agreement.
7.3 Severability. If any term or other provision of this Agreement is
held invalid, illegal or incapable of being enforced by any law or public
policy, all other terms and provisions of this Agreement shall nevertheless
remain in full force and effect unless the provisions held invalid, illegal or
unenforceable shall substantially impair the benefits of the remaining
provisions hereof.
7.4 Entire Agreement. This Agreement constitutes the entire Agreement
of the parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and undertakings, both written and oral, between the
parties with respect to the subject matter hereof.
7.5 Assignment. This Agreement shall inure to the benefit of and be
binding on the successors and assigns of each of the parties; provided, that
no party hereto shall assign its rights under this Agreement without the prior
written consent of the other parties, except the Purchaser may assign its rights
to an Affiliate or to Oak Hill Securities, L.P. and any of its Affiliates.
7.6 Amendment and Waiver.
(a) No failure or delay on the part of any of the parties
hereto in exercising any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy. The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to
any of the parties hereto at law, in equity or otherwise.
(b) Any amendment, supplement or modification of or to any
provision of this Agreement and any waiver of any provision of this Agreement
shall be effective only if it is made or given in writing and signed by the
Company, ASCRP and the Purchaser.
7.7 Counterparts. This Agreement may be executed in any number of
counterparts and by the parties hereto in separate counterparts, all of which
14
when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same Agreement.
7.8 Specific Performance. The parties hereto agree that irreparable
damage would occur in the event that any provision of this Agreement or the
Warrant were not performed in accordance with their terms and that the parties
shall be entitled to specific performance of the terms of this Agreement and the
Warrant, in addition to any other remedy at law or equity.
7.9 Expenses. All costs and expenses, including, without limitation,
fees and disbursements of counsel, financial advisors and accountants, incurred
in connection with this Agreement and the Warrant and the transactions
contemplated hereby shall be paid by the party incurring such costs and
expenses, except that ASCRP or the Company shall pay the reasonable
out-of-pocket expenses of the Purchaser in connection with the transactions
contemplated by the Agreement and the Warrant.
7.10 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
ANY CONFLICTS OF LAW PRINCIPLES THEREOF THAT MIGHT INDICATE THE APPLICABILITY OF
THE LAWS OF ANY OTHER JURISDICTION.
[Remainder of this page intentionally left blank.]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date first above written.
AMERICAN SKIING COMPANY
By: /s/ Xxxx X. Xxxxxx
---------------------------------------
Name: Xxxx X. Xxxxxx
Title: Chief Financial Officer
AMERICAN SKIING COMPANY RESORT
PROPERTIES, INC.
By: /s/ Xxxx X. Xxxxxx
---------------------------------------
Name: Xxxx X. Xxxxxx
Title: Chief Financial Officer
OAK HILL CAPITAL PARTNERS, L.P.
By: OHCP GenPar, L.P., its general partner
By: OHCP MGP, LLC, its general partner
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------------
Name: Xxxxxx X. Xxxxxx
Title: Managing Member
EXHIBIT A to the
Securities Purchase Agreement
THIS WARRANT AND ANY SECURITIES ACQUIRED UPON THE EXERCISE OF THIS WARRANT HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR
THE SECURITIES LAWS OF ANY STATE. NEITHER THIS WARRANT, SUCH SECURITIES NOR ANY
INTEREST THEREIN MAY BE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH
LAWS.
THE SALE, ASSIGNMENT, HYPOTHECATION, PLEDGE, ENCUMBRANCE OR OTHER DISPOSITION
(EACH A "TRANSFER") AND VOTING OF ANY OF THE SECURITIES REPRESENTED BY THIS
WARRANT AND THE SECURITIES ACQUIRED PURSUANT TO THE EXERCISE OF THIS WARRANT ARE
RESTRICTED BY THE TERMS OF THE STOCKHOLDERS' AGREEMENT, DATED AUGUST 9, 1999, AS
AMENDED, AMONG AMERICAN SKIING COMPANY, A DELAWARE CORPORATION (THE "COMPANY"),
AND THE PARTIES NAMED THEREIN, A COPY OF WHICH MAY BE INSPECTED AT THE COMPANY'S
PRINCIPAL OFFICE. THE COMPANY WILL NOT REGISTER THE TRANSFER OF THIS WARRANT OR
SUCH SECURITIES ON THE BOOKS OF THE COMPANY UNLESS AND UNTIL THE TRANSFER HAS
BEEN MADE IN COMPLIANCE WITH THE TERMS OF SUCH AGREEMENT.
---------------------------------------------
AMERICAN SKIING COMPANY
COMMON STOCK PURCHASE WARRANT
---------------------------------------------
This certifies that, for good and valuable consideration,
AMERICAN SKIING COMPANY, a Delaware corporation (the "Company"), grants to Oak
Hill Capital Partners, L.P., a Delaware limited partnership (the
"Warrantholder"), the right to subscribe for and purchase from the Company,
during the Exercise Period (as hereinafter defined), Six Million (6,000,000)
validly issued, fully paid and nonassessable shares of Common Stock of the
Company (the "Warrant Shares"), at the exercise price per share of $2.50
(subject to adjustment as set forth below, the "Exercise Price"), all subject to
the terms, conditions and adjustments herein set forth. Capitalized terms used
herein shall have the meanings ascribed to such terms in Section 9 below.
1. Warrant.
2
1.1 Exercise Period. This Warrant is issued pursuant to, and in
accordance with, Article 2 of the Securities Purchase Agreement by and among
the Company, the Warrantholder, and American Skiing Company Resort Properties,
Inc. ("ASCRP"), dated as of July 31, 2000 (the "Purchase Agreement"), and is
subject to the terms thereof. "Exercise Period" shall mean the period beginning
on the date hereof and ending on December 31, 2005.
2. Exercise of Warrant; Payment of Taxes.
2.1 Exercise of Warrant. Subject to the terms and conditions
set forth herein, this Warrant may be exercised at any time, in whole or in
part, by the Warrantholder during the Exercise Period by:
(a) the surrender of this Warrant to the Company, with a
duly executed Exercise Form, and
(b) subject to Section 2.2 below, the delivery of payment
to the Company, for the account of the Company, by cash, wire transfer,
certified or official bank check or any other means approved by the Company, of
the aggregate Exercise Price in lawful money of the United States of America.
The Company agrees that the Warrant Shares shall be deemed to be issued to the
Warrantholder as the record holder of such Warrant Shares as of the close of
business on the date on which this Warrant shall have been surrendered and
payment made for the Warrant Shares as aforesaid.
2.2 Conversion Right.
(a) In lieu of the payment of the aggregate Exercise
Price, the Warrantholder shall have the right (but not the obligation), to
require the Company to convert this Warrant, in whole or in part, into shares of
Common Stock (the "Conversion Right") as provided for in this Section 2.2.
Upon exercise of the Conversion Right, the Company shall deliver to the
Warrantholder (without payment by the Warrantholder of any of the Exercise
Price) in accordance with Section 2.1(b) that number of shares of Common Stock
equal to the quotient obtained by dividing (i) the value of the Warrant or
portion thereof at the time the Conversion Right is exercised (determined by
subtracting the aggregate Exercise Price at the time of the exercise of the
Conversion Right from the aggregate Current Market Price for the shares of
Common Stock issuable upon exercise of the Warrant at the time of the exercise
of the Conversion Right) by (ii) the Current Market Price of one share of Common
Stock at the time of the exercise of the Conversion Right.
(b) The Conversion Right may be exercised by the
Warrantholder on any Business Day prior to the end of the Exercise Period by
surrender of this Warrant to the Company, with a duly executed Exercise Form
3
with the conversion section completed, exercising the Conversion Right and
specifying the total number of shares of Common Stock that the Warrantholder
will be issued pursuant to such conversion.
2.3 Warrant Shares Certificate. A stock certificate or
certificates for the Warrant Shares specified in the Exercise Form shall be
delivered to the Warrantholder within five (5) Business Days after receipt of
the Exercise Form by the Company and, unless the Conversion Right is exercised,
the payment by the Warrantholder of the aggregate Exercise Price. If this
Warrant is exercised only in part, the Company shall, at the time of delivery of
the stock certificate or certificates, deliver to the Warrantholder a new
Warrant evidencing the right to purchase the remaining Warrant Shares, which
new Warrant shall in all other respects be identical to this Warrant.
2.4 Payment of Taxes. The Company will pay all documentary
stamp or other issuance taxes, if any, attributable to the issuance of Warrant
Shares upon the exercise of this Warrant, except that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue or delivery of any Warrants or Warrant certificates or
Warrant Shares in a name other than that of the then Warrantholder as reflected
upon the books of the Company.
3. Restrictions on Transfer; Restrictive Legends.
3.1 At no time may this Warrant or the Warrant Shares be
offered, sold, transferred, pledged or otherwise disposed of, in whole or in
part, to any Person except in accordance with applicable federal and state
securities laws and the terms of and conditions of the Stockholders' Agreement,
dated August 9, 1999, as amended (the "Stockholders' Agreement"), among the
Company, the Warrantholder, Xxxxxx X. Xxxxx and the other parties signatory
thereto.
3.2 Except as otherwise permitted by this Section 3, each
Warrant (and each Warrant issued in substitution for any Warrant pursuant to
Section 6) and each certificate for Warrant Shares issued upon the exercise
of any Warrant shall be stamped or otherwise imprinted with a legend in
substantially the form as set forth on the cover of this Warrant.
Notwithstanding the foregoing, the Warrantholder may require the Company to
issue a Warrant or a certificate for Warrant Shares, in each case without a
legend, if (a)(i) the resale of such Warrant or such Warrant Shares, as the case
may be, has been registered under the Securities Act (and such registration
remains in effect), (ii) the Warrantholder has delivered to the Company an
opinion of legal counsel (from a firm reasonably satisfactory to the Company),
which is addressed to the Company and is reasonably satisfactory in form and
substance to the Company's counsel, to the effect that such registration is not
4
required with respect to the resale of such Warrant or such Warrant Shares,
as the case may be, or (iii) such Warrant or Warrant Shares may then be sold
pursuant to Rule 144 (or any successor provision then in effect) under the
Securities Act, and (b) the Warrantholder has delivered to the Company an
opinion of legal counsel (from a firm reasonably satisfactory to the Company),
which is addressed to the Company and is reasonably satisfactory in form and
substance to the Company's counsel, to the effect that, pursuant to the terms
and conditions of the Stockholders' Agreement, the Warrant or the Warrant Shares
may be transferred free of legend.
4. Reservation and Registration of Shares. The Company covenants
and agrees as follows:
(a) All Warrant Shares that are issued upon the exercise
of this Warrant shall, upon issuance, be validly issued, fully paid and
non-assessable, not subject to any preemptive rights, and be free from all
taxes, liens, security interests, charges, and other encumbrances with respect
to the issuance thereof, other than taxes in respect of any transfer occurring
contemporaneously with such issue.
(b) The Company shall at all times have authorized and
reserved, and shall keep available and free from preemptive rights, a sufficient
number of shares of Common Stock to provide for the exercise of the rights
represented by this Warrant.
(c) The Company shall not, by amendment of its articles of
certificate of incorporation or through any reorganization, transfer of assets,
spin-off, consolidation, merger, dissolution, issue or sale of securities or any
other action or inaction, seek to avoid the observance or performance of any of
the terms of this Warrant, and shall at all times in good faith assist in
performing and giving effect to the terms hereof and in the taking of all such
actions as may be necessary or appropriate in order to protect the rights of the
Warrantholder against dilution or other impairment.
5. Anti-dilution Adjustments. The Exercise Price and the number of
Warrant Shares to be received upon exercise of this Warrant shall be subject to
adjustment as follows:
5.1 Dividend, Subdivision, Combination or Reclassification of
Common Stock. If the Company shall at any time or from time to time, after the
Closing Date but prior to the exercise hereof, (w) make a dividend or
distribution on the outstanding shares of Common Stock payable in Capital Stock,
(x) subdivide the outstanding shares of Common Stock into a larger number of
shares, (y) combine the outstanding shares of Common Stock into a smaller number
of shares or (z) issue any shares of its Capital Stock in a reclassification of
the Common Stock (other than any such event for which an adjustment is made
pursuant to another clause of this Section 5), then, and in each such case,
(A) the aggregate number of Warrant Shares for which this Warrant is exercisable
(the "Warrant Share Number") immediately prior to such event shall be adjusted
(and any other appropriate actions shall be taken by the Company) so that the
Warrantholder shall be entitled to receive upon exercise of this Warrant the
number of shares of Common Stock or other securities of the Company that it
5
would have owned or would have been entitled to receive upon or by reason of any
of the events described above, had this Warrant been exercised immediately prior
to the occurrence of such event and (B) the Exercise Price payable upon the
exercise of this Warrant shall be adjusted by multiplying such Exercise Price
immediately prior to such adjustment by a fraction, the numerator of which shall
be the Warrant Share Number immediately prior to such adjustment, and the
denominator of which shall be the Warrant Share Number immediately thereafter.
An adjustment made pursuant to this Section 5.1 shall become effective
retroactively (x) in the case of any such dividend or distribution, to a date
immediately following the close of business on the record date for the
determination of holders of shares of Common Stock entitled to receive such
dividend or distribution or (y) in the case of any such subdivision, combination
or reclassification, to the close of business on the day upon which such
corporate action becomes effective.
5.2 Issuances Below Market Price.
(a) If the Company shall at any time or from time to
time, after the Closing Date but prior to the exercise hereof, issue or sell
(such issuance or sale, a "New Issuance") any shares of Common Stock or Common
Stock Equivalents at a price per share of Common Stock (the "New Issue Price")
that is less than the Current Market Price then in effect as of the record date
or Issue Date (as defined below), as the case may be (the "Relevant Date")
(treating the price per share of Common Stock, in the case of the issuance
of any Common Stock Equivalent, as equal to (x) the sum of the price for
such Common Stock Equivalent plus any additional consideration payable (without
regard to any anti-dilution adjustments) upon the conversion, exchange or
exercise of such Common Stock Equivalent divided by (y) the number of shares
of Common Stock initially underlying such Common Stock Equivalent), other than
(i) issuances or sales for which an adjustment is made pursuant to another
subsection of this Section 5 and (ii) issuances in connection with an Excluded
Transaction, then, and in each such case, (A) the Exercise Price then in effect
shall be adjusted by multiplying the Exercise Price in effect on the day
immediately prior to the Relevant Date by a fraction (I) the numerator of which
shall be the sum of the number of shares of Common Stock outstanding on the
Relevant Date plus the number of shares of Common Stock which the aggregate
consideration received by the Company for the total number of such additional
shares of Common Stock so issued would purchase at the Current Market Price on
the Relevant Date (or, in the case of Common Stock Equivalents, the number of
shares of Common Stock which the aggregate consideration received by the
Company upon the issuance of such Common Stock Equivalents and receivable by
the Company upon the conversion, exchange or exercise of such Common Stock
Equivalents would purchase at the Current Market Price on the Relevant Date)
and (II) the denominator of which shall be the sum of the number of shares of
Common Stock outstanding on the Relevant Date plus the number of additional
shares of Common Stock issued or to be issued (or, in the case of Common Stock
Equivalents, the maximum number of shares of Common Stock into which such Common
Stock Equivalents initially may convert, exchange or be exercised)and (B) the
6
Warrant Share Number shall be increased to equal the product of (i) the
aggregate number of Warrant Shares for which this Warrant is exercisable
immediately prior to the New Issuance multiplied by (ii) a fraction, the
numerator of which shall be the Exercise Price in effect on the day immediately
prior to the Relevant Date and the denominator of which shall be the Exercise
Price in effect immediately after such adjustment.
Such adjustment shall be made whenever such shares of Common Stock or Common
Stock Equivalents are issued, and shall become effective retroactively (x) in
the case of an issuance to the stockholders of the Company, as such, to a date
immediately following the close of business on the record date for the
determination of shareholders entitled to receive such shares of Common Stock or
Common Stock Equivalents and (y) in all other cases, on the date (the "Issue
Date") of such issuance; provided, however, that the determination as to whether
an adjustment is required to be made pursuant to this Section 5.2 shall be made
only upon the issuance of such shares of Common Stock or Common Stock
Equivalents, and not upon the subsequent issuance of any security into which the
Common Stock Equivalents convert, exchange or may be exercised.
(b) If at any time any shares of Common Stock or Common
Stock Equivalents or any rights or options to purchase any shares of Common
Stock or Common Stock Equivalents shall be issued or sold for cash, the
consideration received therefor shall be deemed to be the amount received by
the Company therefor, without deduction therefrom of any expenses incurred or
any underwriting commissions or concessions or discounts paid or allowed by the
Company in connection therewith. If any shares of Common Stock or Common Stock
Equivalents or any rights or options to purchase any Common Stock or Common
Stock Equivalents shall be issued or sold for a consideration other than cash,
the amount of the consideration other than cash received by the Company shall be
deemed to be the Fair Market Value of such consideration, without deduction
therefrom of any expenses incurred or any underwriting commissions or
concessions or discounts paid or allowed by the Company in connection therewith.
If any shares of Common Stock or Common Stock Equivalents or any rights or
options to purchase any shares of Common Stock or Common Stock Equivalents shall
be issued in connection with any merger of another entity into the Company or
any mandatory share exchange, the amount of consideration therefor shall be
deemed to be the Fair Market Value of the assets of the merged entity after
deducting therefrom all cash and other consideration (if any) paid by the
Company in connection with such merger or mandatory share exchange.
(c) If any Common Stock Equivalents (or any portions
thereof) which shall have given rise to an adjustment pursuant to this Section
5.2 shall have expired or terminated without the exercise thereof and/or if by
7
reason of the terms of such Common Stock Equivalents there shall have been an
increase or increases, with the passage of time or otherwise, in the price
payable upon the exercise or conversion thereof, then the Exercise Price
hereunder shall be readjusted (but to no greater extent than originally
adjusted) in order to (i) eliminate from the computation any additional shares
of Common Stock corresponding to such Common Stock Equivalents as shall have
expired or terminated, (ii) treat the additional shares of Common Stock, if any,
actually issued or issuable pursuant to the previous exercise of such Common
Stock Equivalents as having been issued for the consideration actually received
and receivable therefor and (iii) treat any of such Common Stock Equivalents
which remain outstanding as being subject to exercise or conversion on the basis
of such exercise or conversion price as shall be in effect at the time.
5.3 Certain Distributions. If the Company shall at any time or
from time to time, after the Closing Date but prior to the exercise hereof,
distribute to all holders of shares of Common Stock (including any such
distribution made in connection with a merger or consolidation in which the
Company is the resulting or surviving Person and shares of Common Stock are not
changed or exchanged) cash, evidences of indebtedness of the Company or another
issuer, securities of the Company or another issuer or other assets (excluding
dividends or distributions payable in shares of Common Stock for which
adjustment is made under Section 5.1 and any distribution in connection
with an Excluded Transaction) or rights or warrants to subscribe for or purchase
any of the foregoing, then, and in each such case, (A) the Exercise Price then
in effect shall be adjusted (and any other appropriate actions shall be taken by
the Company) by being multiplied by the Exercise Price in effect prior to the
date of distribution by a fraction (i) the numerator of which shall be such
Current Market Price of Common Stock immediately prior to the date of
distribution less the then Fair Market Value of the portion of the cash,
evidences of indebtedness, securities or other assets so distributed or of such
rights or warrants applicable to one share of Common Stock and (ii) the
denominator of which shall be the Current Market Price of the Common Stock
immediately prior to the date of distribution (but such fraction shall not be
greater than one) and (B) the Warrant Share Number shall be increased by
being multiplied by a fraction (i) the numerator of which shall be the Current
Market Price of one share of Common Stock immediately prior to the record date
for the distribution of such cash, evidences of indebtedness, securities, other
assets or rights or warrants and (ii) the denominator of which shall be the
Current Market Price of one share of Common Stock immediately prior to such
record date less the Fair Market Value of the portion of such cash, evidences of
indebtedness, securities, other assets or rights or warrants so distributed.
Such adjustment shall be made whenever any such distribution is made and shall
become effective retroactively to a date immediately following the close of
business on the record date for the determination of stockholders entitled to
receive such distribution.
8
5.4 Other Changes. If the Company at any time or from time to
time, after the Closing Date but prior to the exercise hereof, shall take any
action affecting its Common Stock similar to or having an effect similar to any
of the actions described in any of Sections 5.1, 5.2, 5.3 or 5.8 (but not
including any action described in any such Section) and the Board of Directors
in good faith determines that it would be equitable in the circumstances to
adjust the Exercise Price and Warrant Share Number as a result of such action,
then, and in each such case, the Exercise Price and Warrant Share Number shall
be adjusted in such manner and at such time as the Board of Directors in good
faith determines would be equitable in the circumstances (such determination to
be evidenced in a resolution, a certified copy of which shall be mailed to the
Warrantholder).
5.5 No Adjustment; Par Value Minimum. Notwithstanding anything
herein to the contrary, no adjustment under this Section 5 need be made to the
Exercise Price or Warrant Share Number if the Company receives written notice
from the Warrantholder that no such adjustment is required. Notwithstanding any
other provision of this Warrant, the Exercise Price shall not be adjusted below
the par value of a share of Common Stock.
5.6 Abandonment. If the Company shall take a record of the
holders of shares of its Common Stock for the purpose of entitling them to
receive a dividend or other distribution, and shall thereafter and before the
distribution to stockholders thereof legally abandon its plan to pay or deliver
such dividend or distribution, then no adjustment in the Exercise Price or
Warrant Share Number shall be required by reason of the taking of such record.
5.7 Certificate as to Adjustments. Upon any adjustment in the
Exercise Price or Warrant Share Number, the Company shall within a reasonable
period (not to exceed ten (10) days) following any of the foregoing transactions
deliver to the Warrantholder a certificate, signed by (i) the Chief Executive
Officer of the Company and (ii) the Chief Financial Officer of the Company,
setting forth in reasonable detail the event requiring the adjustment and the
method by which such adjustment was calculated and specifying the adjusted
Exercise Price and Warrant Share Number then in effect following such
adjustment.
5.8 Spin-off; Reorganization, Reclassification, Merger or Sale
Transaction.
(a) In case of any spin-off by the Company of another
Person (the "Spin-off Entity") at any time after the Closing Date but prior to
the exercise hereof, the Company shall issue to the Warrantholder a new warrant,
in form and substance satisfactory to the Company and the Warrantholders,
entitling the Warrantholder to purchase, at the exercise price equal to the
excess of the Exercise Price in effect immediately prior to such spin-off over
the adjusted Exercise Price pursuant to Section 5.3, the number of shares of
9
common stock or other proprietary interest in the Spin-off Entity that the
Warrantholder would have owned had the Warrantholder, immediately prior to such
spin-off, exercised this Warrant.
(b)In case of any capital reorganization, reclassification,
Sale Transaction, mandatory share exchange (other than a Sale Transaction or
mandatory share exchange in which the Company is the surviving corporation and
in which the Common Stock is not exchanged or converted) of the Company or other
change of outstanding shares of Common Stock (other than a change in par value,
or from par value to no par value, or from no par value to par value) (each, a
"Transaction") at any time after the Closing Date but prior to the exercise
hereof, the Company shall execute and deliver to the Warrantholder at least
twenty (20) Business Days prior to effecting such Transaction a certificate
stating that the Warrantholder shall have the right thereafter to exercise this
Warrant for the kind and amount of shares of stock or other securities, property
or cash receivable upon such Transaction by a holder of the number of shares of
Common Stock into which this Warrant could have been exercised immediately prior
to such Transaction, and provision shall be made therefor in the agreement, if
any, relating to such Transaction. Such certificate shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the
adjustments provided for in this Section 5. The provisions of this Section 5.8
and any equivalent thereof in any such certificate similarly shall apply to
successive transactions.
5.9......Notices. In case at any time or from time to time:
(w) the Company shall declare a dividend (or other
distribution) on its shares of Common Stock;
(x) the Company shall authorize the granting to the
holders of shares of its Common Stock rights or warrants to subscribe for
or purchase any shares of Capital Stock or any other rights or warrants;
(y) there shall occur a spin-off or Transaction; or
(z) the Company shall take any other action that
would require a vote of the Company's stockholders;
then the Company shall mail to the Warrantholder, as promptly as possible but in
any event at least twenty (20) days prior to the applicable date hereinafter
specified, a notice stating (A) the date on which a record is to be taken for
the purpose of such dividend, distribution or granting of rights or warrants or,
if a record is not to be taken, the date as of which the holders of Common Stock
of record to be entitled to such dividend, distribution or granting of rights or
warrants are to be determined, or (B) the date on which such spin-off or
Transaction is expected to become effective and the date as of which it is
10
expected that holders of Common Stock of record shall be entitled to exchange
their Common Stock for shares of stock or other securities or property or cash
deliverable upon such spin-off or Transaction. Notwithstanding the foregoing, in
the case of any event to which Section 5.8 is applicable, the Company shall also
deliver the certificate described in such Section 5.8 to the Warrantholder at
least twenty (20) Business Days prior to effecting such reorganization or
reclassification as aforesaid.
6. Loss or Destruction of Warrant. Subject to the terms and
conditions hereof, upon receipt by the Company of evidence reasonably
satisfactory to it of the loss, theft, destruction or mutilation of this Warrant
and, in the case of loss, theft or destruction, of such bond or indemnification
as the Company may reasonably require, and, in the case of such mutilation, upon
surrender and cancellation of this Warrant, the Company will execute and deliver
a new Warrantof like tenor.
7. Ownership of Warrant. The Company may deem and treat the person
in whose name this Warrant is registered as the holder and owner hereof
(notwithstanding any notations of ownership or writing hereon made by anyone
other than the Company) for all purposes and shall not be affected by any notice
to the contrary, until presentation of this Warrant for registration of
transfer.
8. Amendments. Any provision of this Warrant may be amended and
the observance thereof waived only with the written consent of the Company and
the Warrantholder.
9. Definitions. As used herein, unless the context otherwise
requires, the following terms have the following respective meanings:
"ASCRP" has the meaning set forth in Section 1.1 of this Warrant.
"Board of Directors" means the Board of Directors of the Company.
"Business Day" means any day other than a Saturday, Sunday or
other day on which commercial banks in the State of New York are authorized or
required by law or executive order to close.
"Capital Stock" means, with respect to any Person, any and all
shares, interests, participations, rights in, or other equivalents (however
designated and whether voting or non-voting) of such Person's capital stock and
any and all rights, warrants or options exchangeable for or convertible into
such capital stock (but excluding any debt security whether or not it is
exchangeable for or convertible into such capital stock).
"Closing Date" has the meaning ascribed to that term in the
Purchase Agreement.
11
"Common Stock" means the common stock, par value $.01 per share,
of the Company.
"Common Stock Equivalent" means any security or obligation which
is by its terms convertible into or exercisable into shares of Common Stock,
including, without limitation, any option, warrant or other subscription or
purchase right with respect to Common Stock.
"Company" has the meaning set forth in the first paragraph of this
Warrant.
"Conversion Right" has the meaning set forth in Section 2.2(a) of
this Warrant.
"Current Market Price" means, as of the date of determination, the
average of the daily Market Price of the Common Stock during the immediately
preceding ten (10) consecutive trading days ending on such date.
"Excluded Transaction" means (a) any issuance of Common Stock or
securities convertible into or exchangeable for Common Stock (i) as part of
an agreement approved by the Board of Directors and determined by them to be
part of an arm's length commercial agreement, or (ii) to employees, officers or
directors of the Company pursuant to a stock-incentive plan that has been duly
approved by the Board of Directors and (b) any issuance of Common Stock (i) upon
the conversion of Series A Preferred Stock or Series B Preferred Stock, or (ii)
as a dividend on shares of Series A Preferred Stock or Series B Preferred Stock.
"Exercise Form" means an Exercise Form in the form annexed hereto
as Exhibit A.
"Exercise Period" has the meaning set forth in Section 1 of this
Warrant.
"Exercise Price" has the meaning set forth in the first paragraph
of this Warrant.
"Fair Market Value" means the amount which a willing buyer
would pay a willing seller in an arm's length transaction reasonably determined
in good faith by the Board of Directors and shall be the value which is agreed
upon by at least 85% of the members thereof, or, if such determination is not
reasonably satisfactory to the Warrantholders, such determination shall be made
by a nationally recognized investment banking firm selected by the Company and
the Warrantholders, the expenses for which shall be born equally by the Company
and the Warrantholder. Any determination of the Fair Market Value by the Board
12
of Directors or such investment banking firm shall be made based on a valuation
of the Company as an entirety without regard to any discount for minority
interests or disparate voting rights among classes of capital stock.
"Issue Date" has the meaning set forth in Section 5.2 of this
Warrant.
"Market Price" on any date shall mean the closing bid prices per
share of the Common Stock on the NYSE or, if not then listed or traded on
NYSE, such other exchange, market or system that the Common Stock is then listed
or traded on. If on any such date the shares of such Common Stock are not listed
or admitted for trading on any national securities exchange or quoted on NYSE or
a similar service, the Market Price for such shares shall be the fair market
value of such shares on such date as determined in good faith by the Board of
Directors of the Company and shall be the value which is agreed upon by at least
85% of the members thereof, or if such percentage of the members of the Board of
Directors are unable to agree upon the value of such consideration, the value
thereof shall be determined by an independent investment bank of a nationally
recognized stature that is selected by the Company and the Warrantholders.
"New Issuance" has the meaning set forth in Section 5.2 of this
Warrant.
"New Issue Price" has the meaning set forth in Section 5.2 of this
Warrant.
"NYSE" means the New York Stock Exchange.
"Person" means any individual, firm, corporation, partnership,
limited liability company, trust, incorporated or unincorporated association,
joint venture, joint stock company, governmental body or other entity of any
kind.
"Purchase Agreement" has the meaning set forth in Section 1 of
this Warrant.
"Relevant Date" has the meaning set forth in Section 5.2 of this
Warrant.
"Sale Transaction" shall mean (a) (i) the merger or
consolidation of the Company into or with one or more Persons, (ii) the merger
or consolidation of one or more Persons into or with the Company or (iii) a
tender offer or other business combination if, in the case of (i), (ii) or
(iii), the stockholders of the Company prior to such merger or consolidation do
not retain at least a majority of the voting power of the surviving Person or
(b) the voluntary sale, conveyance, exchange or transfer to another Person of
(i) the voting Capital Stock of the Company if, after such sale, conveyance,
exchange or transfer, the stockholders of the Company prior to such sale,
13
conveyance, exchange or transfer do not retain at least a majority of the voting
power of the Company or (ii) all or substantially all of the assets of the
Company.
"Securities Act" means the Securities Act of 1933, as amended, and
the rules and regulations of the Securities and Exchange Commission
thereunder.
"Series A Preferred Stock" means the 10.5% Repriced
Convertible Exchangeable Preferred Stock, par value $.01 per share, of the
Company.
"Series B Preferred Stock" means the 8.5% Convertible
Participating Preferred Stock, par value $.01 per share, of the Company.
"Spin-off Entity" has the meaning set forth in Section 5.8 of this
Warrant.
"Transaction" has the meaning set forth in Section 5.8 of this
Warrant.
"Transfer" has the meaning set forth on the cover of this Warrant.
"Warrant Share Number" has the meaning set forth in Section 5.1 of
this Warrant.
"Warrant Shares" has the meaning set forth in the first paragraph
of this Warrant.
"Warrantholder" has the meaning set forth in the first paragraph
of this Warrant.
10. Miscellaneous
10.1 Entire Agreement. This Warrant and the Purchase Agreement
constitutes the entire agreement between the Company and the Warrantholder with
respect to the Warrant and supersedes all prior agreements and understanding
with respects to the subject matter of this Warrant.
10.2 Binding Effect; Benefits. This Warrant shall inure to
the benefit of and shall be binding upon the Company and the Warrantholder and
their respective permitted successors and assigns. Nothing in this Warrant,
expressed or implied, is intended to or shall confer on any person other than
the Company and the Warrantholder, or their respective permitted successors or
assigns, any rights, remedies, obligations or liabilities under or by reason of
this Warrant.
10.3 Headings. The headings in this Warrant are for convenience
of reference only and shall not limit or otherwise affect the meaning of this
Warrant.
14
10.4 Notices. All notices, demands and other communications
provided for or permitted hereunder shall be made in writing and shall be by
registered or certified first-class mail, return receipt requested, telecopier,
courier service or personal delivery:
(a) if to the Company:
American Skiing Company
Sunday Xxxxx Xxxx
Xxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxx
Xxxxxxxxxxx X. Xxxxxx
and
American Skiing Company
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxx, Xx., General Counsel
with a copy to:
Shearman & Sterling
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000-0000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxx, Esq.
E-mail: xxxxxx@xxxxxxxx.xxx
and a copy to:
Xxxxxx Xxxxxx
Xxx Xxxxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxxxxx, Esq.
E-mail: xxxxxxxxx@xxxxxxxxxxxx.xxx
15
(b) if to the Warrantholder to:
Oak Hill Capital Partners, L.P.
000 Xxxx Xxxxxx
Xxxx Xxxxx, Xxxxx 00000
Telecopy: (000) 000-0000
Attention: Xxx Xxxxxx
and
Oak Hill Capital Management, Inc.
Park Avenue Tower
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Telecopy: (000) 000-0000
Attention: Xxxxxx X. Xxxxxx
Xxxxxxxx X. Xxxxxxxxx
with a copy to:
Xxxx, Weiss, Rifkind, Xxxxxxx & Xxxxxxxx
0000 Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx, XX 00000-0000
Telecopy: (000) 000-0000
Attention: Xxxxx X. Xxxxxxxx, Esq.
Email: xxxxxxxxx@xxxxxxxxx.xxx
All such notices, demands and other communications shall be
deemed to have been duly given when delivered by hand, if personally delivered;
when delivered by courier, if delivered by commercial courier service; five (5)
Business Days after being deposited in the mail, postage prepaid, if mailed; and
when receipt is mechanically acknowledged, if telecopied. Any party may by
notice given in accordance with this Section 10.4 designate another address or
Person for receipt of notices hereunder.
10.5 Severability. Any term or provision of this Warrant which
is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the terms and provisions of this Warrant or
affecting the validity or enforceability of any of the terms or provisions of
this Warrant in any other jurisdiction.
10.6 GOVERNING LAW. THIS WARRANT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
ANY CONFLICTS
16
OF LAW PRINCIPLES THEREOF THAT MIGHT INDICATE THE APPLICABILITY OF THE LAWS OF
ANY OTHER JURISDICTION.
IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer.
AMERICAN SKIING COMPANY
By:
----------------------------------------
Name:
Title:
Dated: _____, 2000
Exhibit A
EXERCISE FORM
(To be executed upon exercise of this Warrant)
The undersigned hereby irrevocably elects to exercise the
right, represented by this Warrant, to purchase [insert number] shares of Common
Stock of the Company and [herewith tenders payment for such shares to the order
of the Company in the amount of $[insert number]] [hereby exercises its
Conversion Right] in accordance with the terms of this Warrant. The undersigned
requests that a certificate for such [Warrant Shares] [that number of Warrant
Shares to which the undersigned is entitled as calculated pursuant to Section
2.2] be registered in the name of the undersigned and that such certificates be
delivered to the undersigned's address below.
The undersigned represents that it is acquiring such shares
for its own account for investment and not with a view to or for sale in
connection with any distribution thereof (subject, however, to any requirement
of law that the disposition thereof shall at all times be within its control).
Dated: [insert date]
Signature___________________________________
___________________________________
(Print Name)
___________________________________
(Xxxxxx Xxxxxxx)
___________________________________
(City) (State) (Zip Code)
