UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. __)
CLEARVIEW CINEMA GROUP, INC.
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(Name of Issuer)
Common Stock, par value $0.01 per share
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(Title of Class of Securities)
185070 10 9
-----------------------------------
(CUSIP Number)
H. L. Klein, General Counsel and Assistant Secretary,
Clearview Cinema Group, Inc.
7 Waverly Place, Madison NJ 07940 (201) 377-4646
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(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 12, 1997
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with this statement [ ].
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act.
<PAGE>
1. NAME OF REPORTING PERSON A. Dale Mayo
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S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [ ]
(b) [X]
3. SEC USE ONLY
4. SOURCE OF FUNDS N/A
---
5. CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS
REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) [ ]
6. CITIZENSHIP OR PLACE OF ORGANIZATION U.S.A.
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NUMBER OF 7. SOLE VOTING POWER 787,097
SHARES
BENEFICIALLY 8. SHARED VOTING POWER 0
OWNED BY
EACH 9. SOLE DISPOSITIVE POWER 318,000
REPORTING
PERSON WITH 10. SHARED DISPOSITIVE POWER 0
11. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 787,097
-------
12. CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES [ ]
13. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 35.6%
-----
14. TYPE OF REPORTING PERSON IN
--
2
<PAGE>
Item 1. Security and Issuer.
This Statement relates to the Common Stock, par value $0.01 per
share ("Clearview Common Stock"), of Clearview Cinema Group, Inc., a Delaware
corporation (the "Company" or "Clearview"). The principal executive offices of
the Company are located at 7 Waverly Place, Madison, New Jersey 07940.
Item 2. Identity and Background.
This Statement is being filed by A. Dale Mayo ("Mr. Mayo"), whose
address is 7 Waverly Place, Madison, New Jersey 07940. Mr. Mayo is the Chairman
of the Board, President, and Chief Executive Officer of Clearview at the address
reported in Item 1.
During the five years immediately prior to the date of this
Statement, Mr. Mayo has not been convicted of a criminal proceeding (excluding
traffic violations or similar misdemeanors) and has not been a party to any
civil proceeding of a judicial or administrative body of competent jurisdiction
and as a result of such proceeding become subject to a judgment, decree or final
order enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state or securities laws or finding any violation with
respect to such laws.
Mr. Mayo is a citizen of the United States of America.
Item 3. Source and Amount of Funds or Other Consideration.
Mr. Mayo is the record owner of 318,000 shares of Clearview Common
Stock. Such shares were principally acquired by Mr. Mayo pursuant to a
Contribution and Exchange Agreement dated December 21, 1994, in exchange for Mr.
Mayo's outstanding shares of capital stock of Clearview Theater Group, Inc., CCC
Madison Triple Cinema Corp., CCC Chester Twin Cinema Corporation and CCC
Manasquan Cinema Corporation and other consideration.
Additionally, Mr. Mayo may be deemed to be a beneficial owner of
469,097 shares of Clearview Common Stock by reason of several Voting Trust
Agreements of which Mr. Mayo is the trustee. Under those agreements, Mr. Mayo
has the right to exercise all voting rights with respect to those shares for a
period of twenty years or until such shares are sold in a public offering under
the Securities Act of 1933 or in accordance with Rule 144 under the Securities
Act. Mr. Mayo has no investment or dispositive power over any such shares.
All 318,000 shares of which Mr. Mayo is the record owner and
364,800 shares of which Mr. Mayo may be deemed to be a beneficial owner, were
acquired prior to August 12, 1997, the date on which Clearview's registration
statement under the Securities Exchange Act of 1934, as amended, became
effective. On November 21, 1997 and December 12, 1997, Clearview and its
subsidiaries acquired separate movie theater businesses in which the Company
issued 41,797 and 62,500 shares of Clearview Common Stock, respectively,
pursuant to which Mr. Mayo may be deemed to be a beneficial owner of such shares
under Voting Trust Agreements, described in Items 5 and 6 below.
3
<PAGE>
Item 4. Purpose of Transaction.
The shares of Clearview Common Stock directly owned by Mr. Mayo are
held for investment purposes. Mr. Mayo has obtained voting power over shares of
Clearview Common Stock pursuant to Voting Trust Agreements in order to enhance
stability of management of the Company. Mr. Mayo may enter into similar Voting
Trust Agreements in connection with future acquisitive transactions of the
Company.
In the performance of his duties as Chairman of the Board,
President, and Chief Executive Officer of Clearview, Mr. Mayo expects to have
continually under consideration various plans or proposals which may relate to
or might result in one or more of the matters described in paragraphs (a)
through (j), inclusive, of Item 4 of Schedule 13D. Any such plans or proposals,
however, would be subject to consideration and approval by the Board of
Directors of Clearview.
Item 5. Interest in Securities of the Issuer.
(a)-(b) At the date of this Statement, 787,097 shares of Clearview
Common Stock in the aggregate are beneficially owned by Mr. Mayo, representing
approximately 35.6% of the total number of the issued and outstanding shares of
Clearview Common Stock (based upon information contained in the Form 10-Q
Quarterly Report of Clearview, for the quarterly period ended September 30,
1997, and transactions of which he has knowledge subsequent thereto). Of such
787,097 shares, Mr. Mayo has sole voting power with respect to all such shares
(approximately 35.6% of the outstanding shares) and sole dispositive power with
respect to 318,000 shares (approximately 14.4% of the outstanding shares).
At the date of this Statement, Mr. Mayo holds an option to purchase
50,000 shares of Clearview Common Stock granted by the Company pursuant to the
Clearview 1997 Stock Incentive Plan. Such shares have not been included
elsewhere in this Statement due to restrictions which would generally prohibit
the exercise of such options within sixty days after the date of this Statement.
(c) On November 21, 1997, Mr. Mayo may be deemed to have become a
beneficial owner of 41,797 shares of Clearview Common Stock (slightly less than
2.0% of the outstanding shares) pursuant to the execution of a Voting Trust
Agreement by and among Mr. Mayo, as Voting Trustee, F & N Cinema, Inc. and
Roxbury Cinema, Inc. entered into in connection with an acquisition by
Clearview.
On December 12, 1997, Mr. Mayo may be deemed to have become a
beneficial owner of 62,500 shares of Clearview Common Stock (approximately 3.0%
of the outstanding shares) pursuant to the execution of a Voting Trust Agreement
by and among Mr. Mayo, as Voting Trustee, Mr. Jesse Sayegh, individually, and
The New Bellevue Theater Corp., entered into in connection with an acquisition
by Clearview.
Item 6. Contracts, Arrangements, Understandings or Relationships with
Respect to Securities of the Company.
Mr. Mayo is trustee under several Voting Trust Agreements. As
trustee,
4
<PAGE>
Mr. Mayo has the power to vote such shares pursuant to the Voting Trust
Agreements. A copy of the Voting Trust Agreements, dated December 12, 1997 and
November 21, 1997, respectively, are filed as Exhibits A and B hereto. All other
Voting Trust Agreements under which Mr. Mayo is a voting trustee have been
incorporated by reference to previous Clearview Securities and Exchange
Commission filings as described in the Exhibit Index attached hereto.
Mr. Mayo also holds an option to purchase 50,000 shares of Clearview
Common Stock subject to the terms and conditions of the Board of Directors'
grant of such options under the Clearview 1997 Stock Incentive Plan.
Item 7. Material to be Filed as Exhibits.
Exhibit Description
A Voting Trust Agreement, dated December 12, 1997, by and among
A. Dale Mayo, as Voting Trustee, and Jesse Sayegh,
individually, and The New Bellevue Theater Corp.
B Voting Trust Agreement, dated November 21, 1997, by and among
A. Dale Mayo, as Voting Trustee, and F & N Cinema, Inc. and
Roxbury Cinema, Inc.
C Voting Trust Agreement, dated December 21, 1994, by and
between A. Dale Mayo, as Voting Trustee, and Brett E. Marks.
D Voting Trust Agreement, dated June 20, 1995, by and between A.
Dale Mayo, as Voting Trustee, and Michael C. Rush.
E Voting Trust Agreement, dated May 29, 1996, by and among A.
Dale Mayo, as Voting Trustee, and Emerson Cinema, Inc.
F Voting Trust Agreement, dated July 31, 1996, by and among A.
Dale Mayo, as Voting Trustee, Paul Kay and Cindy Kay.
G Voting Trust Agreement, dated August 30, 1996, by and between
A. Dale Mayo, as Voting Trustee, and Louis G.
Novick.
5
<PAGE>
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this Statement is true, complete and
correct.
Date: December 22, 1997 /s/ A. Dale Mayo
------------------------------
A. Dale Mayo
6
<PAGE>
EXHIBIT INDEX
Sequential Page No.
A Voting Trust Agreement,
dated December 12, 1997,
by and among A. Dale
Mayo, as Voting Trustee,
and Jessie Sayegh,
individually, and The New
Bellevue Theater Corp.
B Voting Trust Agreement,
dated November 21, 1997,
by and among A. Dale
Mayo, as Voting Trustee,
and F & N Cinema, Inc.
and Roxbury Cinema, Inc.
C Voting Trust Agreement, Incorporated by reference
dated December 21, 1994, from Exhibit 9.01 of the
by and between A. Dale registration statement on
Mayo, as Voting Trustee, Form SB-2 (File No.
and Brett E. Marks. 333-27819), filed by
Clearview Cinema Group,
Inc., on May 27, 1997
(the "Form SB-2").
D Voting Trust Agreement, Incorporated by reference
dated June 20, 1995, by from Exhibit 9.02 of Form
and between A. Dale Mayo, SB-2.
as Voting Trustee, and
Michael C. Rush.
E Voting Trust Agreement, Incorporated by reference
dated May 29, 1996, by from Exhibit 9.03 of Form
and among A. Dale Mayo, SB-2.
as Voting Trustee, and
Emerson Cinema, Inc.
F Voting Trust Agreement, Incorporated by reference
dated July 31, 1996, by from Exhibit 9.04 of Form
and among A. Dale Mayo, SB-2.
as Voting Trustee, Paul
Kay and Cindy Kay.
G Voting Trust Agreement, Incorporated by reference
dated August 30, 1996, by from Exhibit 9.05 of
and between A. Dale Mayo, Amendment No. 1 to Form
as Voting Trustee, and SB-2, filed by Clearview
Louis G. Novick. Cinema Group, Inc. on
July 18, 1997.
7
Exhibit A
VOTING TRUST AGREEMENT
December 12, 1997
This VOTING TRUST AGREEMENT (this "Trust Agreement") is made by and
between the undersigned ("Stockholder") and A. Dale Mayo (the "Trustee").
Stockholder owns in the aggregate 62,500 shares (the "Stock") of the
common stock of Clearview Cinema Group, Inc., a Delaware Corporation (the
"Company").
In accordance with Section 218 of the General Corporation Law of the
State of Delaware, the Stockholder desires to enter into this Voting Trust
Agreement with respect to the Stock, and the Trustee is willing to accept the
voting rights in respect of the Stock and to serve as the voting trustee under
the terms and conditions hereof.
The parties hereto, intending to be legally bound hereby, agree as
follows:
1. Simultaneously with the execution and delivery hereof, the
Stockholder shall deliver the certificates representing the Stock, duly executed
for transfer, to Trustee to be held under this Trust Agreement.
2. (A) Promptly after the delivery required by paragraph 1, the
Trustee shall deliver the certificates representing the Stock to the Company for
transfer and shall cause the shares represented thereby to be transferred to his
name as Trustee under this Trust Agreement. The new certificates representing
the Stock registered in the name of the Trustee shall be delivered to the
Trustee by the Company, and the Trustee shall hold those certificates in his
custody.
(B) The Trustee shall hold the shares of the Stock transferred
to him hereunder, and all other shares of the common stock that the Stockholder
shall transfer to him, in trust for the purposes and subject to the terms and
conditions of the Agreement.
3. At the same time as the delivery by the Trustee of the
certificates to the Company in accordance with the provisions of paragraph 2,
the Trustee shall issue to the Stockholder a Voting Trust Certificate for the
number of shares of the Stock deposited by the Stockholder, which Voting Trust
Certificate shall be in substantially the following form:
<PAGE>
[Front Side]
CLEARVIEW CINEMA GROUP, INC.
(a Delaware corporation)
Certificate No. _____ _____ Shares
VOTING TRUST CERTIFICATE
THIS IS TO CERTIFY that, subject to the provisions hereof and
of the Trust Agreement as hereinafter defined, _________________, or
registered assigns, will be entitled to receive upon the termination of
the Trust Agreement, but only upon surrender of this certificate, a
certificate or certificates for _____ shares of common stock of Clearview
Cinema Group, Inc., a Delaware corporation (hereinafter called the
"Company"), or of any other corporation into which shares of common stock
of the Company shall have been reclassified or converted, or for which
they shall have been exchanged.
Until the expiration or termination of the Trust Agreement,
the undersigned Trustee shall pay or deliver all cash dividends, and
certain other distributions mentioned in the Trust Agreement, on or in
respect of the common stock from time to time held by the undersigned
Trustee thereunder, to the person who, on the record date for the
determination of stockholders entitled to receive the dividends and other
distributions, was the registered owner of this Voting Trust Certificate.
This certificate has been issued under and pursuant to the
provisions of a Voting Trust Agreement (the "Trust Agreement"), by and
between _____________, as a stockholder of the Company and A. Dale Mayo,
as Trustee, dated as of ___________, 1997, as the same may be amended from
time to time. The Trust Agreement more fully defines and sets forth the
rights and obligations of the owner and holder of this certificate and of
the Trustee and is incorporated in and made a part of this Voting Trust
Certificate with the same effect as if set forth in full.
Subject to any restriction contained on the reverse side of
this certificate, this Voting Trust Certificate is transferable by its
registered owner, in person or by duly authorized attorney, on the books
to be maintained for that purpose by the undersigned Trustee, upon the
terms and conditions provided in the Trust Agreement.
WITNESS THE DUE EXECUTION HEREOF on this ______ day of
____________, 199_.
________________________(SEAL)
A. Dale Mayo
Trustee under Voting Trust
Agreement, dated _______________, 1997.
2
<PAGE>
[Reverse side]
The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or any
state Blue Sky or securities laws. These securities cannot be resold
without registration under such Act or applicable state securities
laws or an exemption therefrom.
4. The Voting Trust Certificate issued under this Trust Agreement
shall be transferable in the same manner, with the same effect, and subject to
the same restrictions as certificates for shares of the Stock. The Voting Trust
Certificate shall be transferable only at the principal executive office of the
Company or at any other place that the Company may maintain for its corporate
books and records.
5. The Trustee has no authority to sell or otherwise dispose of or
encumber any of the Stock.
6. The Trustee shall possess and be entitled, subject to the
provisions of this Agreement, to exercise all the rights and powers of an
absolute owner of all the shares of Stock deposited under this Trust Agreement,
including without limitation the right to receive dividends on the Stock
(subject to paragraph 7 below) and the right to vote, consent in writing, or
otherwise act with respect to any corporate or stockholders' action, to increase
or reduce the capital stock of the Company, to classify or reclassify any of the
shares as now or hereafter authorized into preferred or common stock or other
classes of stock with or without par value, to amend the Certificate of
Incorporation or by-laws of the Company, to merge or consolidate the Company
with other corporations, to sell all or any part of its assets, to create any
mortgage lien on any of its property, or for any other corporate act or purpose.
Except as otherwise provided herein, no voting right shall pass to others by or
under the Voting Trust Certificate or by or under this Trust Agreement or by or
under any agreement express or implied. All shares of Stock shall be voted as
directed by the Trustee and shall be deemed to be represented for the purposes
of determining a quorum.
7. (A) All dividends paid on the Stock from time to time held under
this Trust Agreement, except stock dividends, shall be remitted by the Trustee,
promptly upon receipt, to the person or persons who, on the record date for the
determination of stockholders entitled to receive the dividends, were the record
owners of the Voting Trust Certificates representing the shares on which the
dividends were declared.
(B) Dividends paid in shares of common stock of the Company
shall be retained by the Trustee and added to the Stock held under this Trust
Agreement. The Trustee shall promptly issue to the appropriate persons Voting
Trust Certificates representing any Stock that the Trustee shall receive as a
dividend and retain in accordance with the provisions of this paragraph 7. Those
Voting Trust Certificates shall be in the form as set forth in this Trust
Agreement, with any changes that are appropriate.
(C) All warrants or rights to subscribe to any class of voting
stock of the Company ("Warrants") that shall be received by the Trustee in
respect or on account of the Stock held under this Trust Agreement shall be
distributed by the Trustee to the holders of the Voting Trust Certificates in
the same manner as he is required to distribute cash dividends under this Trust
Agreement. If any voting stock is purchased by the Stockholder pursuant to the
3
<PAGE>
Warrants, the Stockholder shall immediately deliver the certificates
representing all the shares of stock so purchased, duly executed for transfer,
to the Trustee to be added to the Stock held under the Trust Agreement. The
Trustee shall promptly issue to the Stockholder Voting Trust Certificates
representing any Stock that shall be so delivered to and held by the Trustee in
accordance with the provisions of this paragraph 7. The Voting Trust
Certificates shall be in the form as set forth in this Trust Agreement, with any
changes that are appropriate. No sale or other transfer of any of the Warrants
shall be made without first offering the Company a prior opportunity to purchase
the Warrants for a reasonable amount.
8. The Stockholder, at any time from and after the date of this
Trust Agreement, must deposit any additional capital stock of the Company
purchased or owned by him (but not specifically described within the Trust
Agreement) with the Trustee and such Additional shares of Stock so deposited
shall become subject to all the terms and conditions of this Trust Agreement to
the same extent as if it were originally deposited under this Trust Agreement;
provided, however, that any shares of capital stock of the Company purchased by
such stockholder in a public market shall not be subject to this Voting Trust
Agreement.
9. (A) If, as the result of any split-up, combination or
reclassification of any Stock held by the Trustee under this Trust Agreement, or
as the result of any merger, consolidation, reorganization or sale of assets to
which the Company shall be a party, the Stock held by the Trustee under this
Trust Agreement shall be reclassified, converted into or become exchangeable for
any other securities, either of the Company or of any other corporation, the
Trustee shall exchange or surrender the Stock held by it for those other
securities and shall deliver the certificates evidencing the same to the Company
or other appropriate agency in exchange or surrender. The Trustee shall hold the
securities received upon the exchange or surrender for the purposes and upon the
same conditions as are provided in this Trust Agreement in respect of the shares
of the Stock.
(B) Upon any exchange or surrender, the Trustee may, if he
considers it to be advisable, issue new Voting Trust Certificates in lieu of and
in exchange for the outstanding Voting Trust Certificates. The Voting Trust
Certificates shall be in the form set forth in this Trust Agreement, with any
changes that are appropriate.
10. (A) The Trustee may serve as a director or officer of the
Company or any successor corporation, and he or any firm of which he may be a
member, or any corporation of which he may be a stockholder, director or
officer, may contract with the Company or any successor corporation, or be
pecuniarily interested in any transaction to which the Company or any successor
corporation may be a party, or in which it may be interested, as fully as though
he were not a Trustee.
(B) The Trustee shall not be liable to any stockholder or the
registered owner or holder of any Voting Trust Certificate for any error of
judgment or for any neglect, default, negligence (including gross negligence)
except for his own willful and deliberate malfeasance.
(C) The Trustee shall not receive any compensation for his
services as Trustee, and he shall not be required to give any bond or security
for the discharge of his duties as Trustee.
(D) The Trustee hereby accepts the trust hereunder, subject to
all the terms and conditions contained in this Trust Agreement, and he agrees to
exercise the powers and perform the duties of Trustee as set forth in this Trust
Agreement.
4
<PAGE>
11. (A) The trust created by this Trust Agreement is expressly
declared to be irrevocable.
(B) (i) This Trust Agreement shall terminate with respect only
to the shares of Stock that are sold by the Stockholder (a) pursuant to Rule 144
promulgated under the Securities Act of 1933, as amended, or (b) pursuant to the
registration rights granted to the Stockholder in the Registration Rights
Agreement. A termination of this Trust Agreement as to any shares of Stock sold
pursuant to clauses (a) or (b) of the preceding sentence shall not affect any
shares of Stock continuing to be owned by the Stockholder (the "Remaining
Shares"), and this Trust Agreement shall continue in force with respect to the
Remaining Shares until terminated pursuant to Paragraph 11(B)(ii).
(ii) This Trust Agreement shall terminate upon the earlier
of (a) the twentieth anniversary hereof, (b) written notice of termination by
the Trustee, or (c) the death of the Trustee.
(C) (i) In the event of any proposed sale of Stock pursuant to
clauses (a) or (b) of the first sentence of Paragraph 11(B)(i), the Stockholder
shall notify the Trustee of the proposed sale and of the number of shares to be
sold, and, upon receipt of (a) confirmation, in a form reasonably requested by
the Trustee, of the consummation of the sale and (b) the Voting Certificate(s)
representing the purchased Stock, the Trustee shall deliver or request that the
Company deliver to the purchaser stock certificates for the purchased Stock,
and, if necessary, shall deliver to the Stockholder a Voting Certificate for the
Remaining Shares.
(ii) In the event of termination of this Trust Agreement
pursuant to Paragraph 11(B)(ii), as soon as practicable after the termination,
the Trustee shall deliver to or upon the order of the registered owners of the
Voting Trust Certificates, and upon surrender thereof, the shares of Stock
represented thereby, together with any other shares of voting stock of the
Company subject to this Trust Agreement.
12. Any notice or other communication required or permitted by this
Trust Agreement to be given by any party hereto shall be in writing, and any
communication and payment or delivery of securities required to be made by any
party to any other party shall be sent by first class prepaid mail, certified or
registered, return receipt requested, addressed in the case of the Stockholder,
to the address that is provided by the Stockholder and, in the case of the
Trustee to:
A. Dale Mayo
7 Waverly Place
Madison, New Jersey 07940
or in any other manner as any party shall hereafter designate by notice to the
other party.
13. This Trust Agreement shall be legally binding upon, and shall
inure to the benefit of, the Stockholder and their respective heirs, legal
representatives, and permitted successors and assigns.
14. The validity and effectiveness of this Trust Agreement shall be
governed by, and its provisions shall be construed and enforced in accordance
with, the laws of the State of Delaware.
5
<PAGE>
15. If, for any reason, any provision or part of this Trust
Agreement is held invalid, that invalidity shall not affect any other provision
or the rest of provision of this Trust Agreement, as the case may be, and each
provision or part shall, to the full extent consistent with law, continue in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Trust
Agreement as of the day and year first above written.
Stockholder:
Jesse Sayegh, Individually
/s/ Jesse Sayegh
---------------------------------
Jesse Sayegh
THE NEW BELLEVUE THEATER CORP.:
By: /s/ Jesse Sayegh
---------------------------
Jesse Sayegh
Trustee:
/s/ A. Dale Mayo
---------------------------
A. Dale Mayo
6
Exhibit B
VOTING TRUST AGREEMENT
November 21, 1997
This VOTING TRUST AGREEMENT (this "Trust Agreement") is made by and
between the undersigned ("Stockholder") and A. Dale Mayo (the "Trustee").
Stockholder owns in the aggregate 41,797 shares (the "Stock") of the
common stock of Clearview Cinema Group, Inc., a Delaware Corporation (the
"Company").
In accordance with Section 218 of the General Corporation Law of the
State of Delaware, the Stockholder desires to enter into this Voting Trust
Agreement with respect to the Stock, and the Trustee is willing to accept the
voting rights in respect of the Stock and to serve as the voting trustee under
the terms and conditions hereof.
The parties hereto, intending to be legally bound hereby, agree as
follows:
1. Simultaneously with the execution and delivery hereof, the
Stockholder shall deliver the certificates representing the Stock, duly executed
for transfer, to Trustee to be held under this Trust Agreement.
2. (A) Promptly after the delivery required by paragraph 1, the
Trustee shall deliver the certificates representing the Stock to the Company for
transfer and shall cause the shares represented thereby to be transferred to his
name as Trustee under this Trust Agreement. The new certificates representing
the Stock registered in the name of the Trustee shall be delivered to the
Trustee by the Company, and the Trustee shall hold those certificates in his
custody.
(B) The Trustee shall hold the shares of the Stock transferred
to him hereunder, and all other shares of the common stock that the Stockholder
shall transfer to him, in trust for the purposes and subject to the terms and
conditions of the Agreement.
3. At the same time as the delivery by the Trustee of the
certificates to the Company in accordance with the provisions of paragraph 2,
the Trustee shall issue to the Stockholder a Voting Trust Certificate for the
number of shares of the Stock deposited by the Stockholder, which Voting Trust
Certificate shall be in substantially the following form:
<PAGE>
[Front Side]
CLEARVIEW CINEMA GROUP, INC.
(a Delaware corporation)
Certificate No. _____ _____ Shares
VOTING TRUST CERTIFICATE
THIS IS TO CERTIFY that, subject to the provisions hereof and
of the Trust Agreement as hereinafter defined,_________________, or
registered assigns, will be entitled to receive upon the termination of
the Trust Agreement, but only upon surrender of this certificate, a
certificate or certificates for _____ shares of common stock of Clearview
Cinema Group, Inc., a Delaware corporation (hereinafter called the
"Company"), or of any other corporation into which shares of common stock
of the Company shall have been reclassified or converted, or for which
they shall have been exchanged.
Until the expiration or termination of the Trust Agreement,
the undersigned Trustee shall pay or deliver all cash dividends, and
certain other distributions mentioned in the Trust Agreement, on or in
respect of the common stock from time to time held by the undersigned
Trustee thereunder, to the person who, on the record date for the
determination of stockholders entitled to receive the dividends and other
distributions, was the registered owner of this Voting Trust Certificate.
This certificate has been issued under and pursuant to the
provisions of a Voting Trust Agreement (the "Trust Agreement"), by and
between _____________, as a stockholder of the Company and A. Dale Mayo,
as Trustee, dated as of ___________, 1997, as the same may be amended from
time to time. The Trust Agreement more fully defines and sets forth the
rights and obligations of the owner and holder of this certificate and of
the Trustee and is incorporated in and made a part of this Voting Trust
Certificate with the same effect as if set forth in full.
Subject to any restriction contained on the reverse side of
this certificate, this Voting Trust Certificate is transferable by its
registered owner, in person or by duly authorized attorney, on the books
to be maintained for that purpose by the undersigned Trustee, upon the
terms and conditions provided in the Trust Agreement.
WITNESS THE DUE EXECUTION HEREOF on this ______ day of
____________, 199_.
________________________(SEAL)
A. Dale Mayo
Trustee under Voting Trust
Agreement, dated _______________, 1997.
2
<PAGE>
[Reverse side]
The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended, or any
state Blue Sky or securities laws. These securities cannot be resold
without registration under such Act or applicable state securities
laws or an exemption therefrom.
4. The Voting Trust Certificate issued under this Trust Agreement
shall be transferable in the same manner, with the same effect, and subject to
the same restrictions as certificates for shares of the Stock. The Voting Trust
Certificate shall be transferable only at the principal executive office of the
Company or at any other place that the Company may maintain for its corporate
books and records.
5. The Trustee has no authority to sell or otherwise dispose of or
encumber any of the Stock.
6. The Trustee shall possess and be entitled, subject to the
provisions of this Agreement, to exercise all the rights and powers of an
absolute owner of all the shares of Stock deposited under this Trust Agreement,
including without limitation the right to receive dividends on the Stock
(subject to paragraph 7 below) and the right to vote, consent in writing, or
otherwise act with respect to any corporate or stockholders' action, to increase
or reduce the capital stock of the Company, to classify or reclassify any of the
shares as now or hereafter authorized into preferred or common stock or other
classes of stock with or without par value, to amend the Certificate of
Incorporation or by-laws of the Company, to merge or consolidate the Company
with other corporations, to sell all or any part of its assets, to create any
mortgage lien on any of its property, or for any other corporate act or purpose.
Except as otherwise provided herein, no voting right shall pass to others by or
under the Voting Trust Certificate or by or under this Trust Agreement or by or
under any agreement express or implied. All shares of Stock shall be voted as
directed by the Trustee and shall be deemed to be represented for the purposes
of determining a quorum.
7. (A) All dividends paid on the Stock from time to time held under
this Trust Agreement, except stock dividends, shall be remitted by the Trustee,
promptly upon receipt, to the person or persons who, on the record date for the
determination of stockholders entitled to receive the dividends, were the record
owners of the Voting Trust Certificates representing the shares on which the
dividends were declared.
(B) Dividends paid in shares of common stock of the Company
shall be retained by the Trustee and added to the Stock held under this Trust
Agreement. The Trustee shall promptly issue to the appropriate persons Voting
Trust Certificates representing any Stock that the Trustee shall receive as a
dividend and retain in accordance with the provisions of this paragraph 7. Those
Voting Trust Certificates shall be in the form as set forth in this Trust
Agreement, with any changes that are appropriate.
(C) All warrants or rights to subscribe to any class of voting
stock of the Company ("Warrants") that shall be received by the Trustee in
respect or on account of the Stock held under this Trust Agreement shall be
distributed by the Trustee to the holders of the Voting Trust Certificates in
the same manner as he is required to distribute cash dividends under this Trust
Agreement. If any voting stock is purchased by the Stockholder pursuant to the
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Warrants, the Stockholder shall immediately deliver the certificates
representing all the shares of stock so purchased, duly executed for transfer,
to the Trustee to be added to the Stock held under the Trust Agreement. The
Trustee shall promptly issue to the Stockholder Voting Trust Certificates
representing any Stock that shall be so delivered to and held by the Trustee in
accordance with the provisions of this paragraph 7. The Voting Trust
Certificates shall be in the form as set forth in this Trust Agreement, with any
changes that are appropriate. No sale or other transfer of any of the Warrants
shall be made without first offering the Company a prior opportunity to purchase
the Warrants for a reasonable amount.
8. The Stockholder, at any time from and after the date of this
Trust Agreement, must deposit any additional capital stock of the Company
purchased or owned by him (but not specifically described within the Trust
Agreement) with the Trustee and such Additional shares of Stock so deposited
shall become subject to all the terms and conditions of this Trust Agreement to
the same extent as if it were originally deposited under this Trust Agreement;
provided, however, that any shares of capital stock of the Company purchased by
such stockholder in a public market shall not be subject to this Voting Trust
Agreement.
9. (A) If, as the result of any split-up, combination or
reclassification of any Stock held by the Trustee under this Trust Agreement, or
as the result of any merger, consolidation, reorganization or sale of assets to
which the Company shall be a party, the Stock held by the Trustee under this
Trust Agreement shall be reclassified, converted into or become exchangeable for
any other securities, either of the Company or of any other corporation, the
Trustee shall exchange or surrender the Stock held by it for those other
securities and shall deliver the certificates evidencing the same to the Company
or other appropriate agency in exchange or surrender. The Trustee shall hold the
securities received upon the exchange or surrender for the purposes and upon the
same conditions as are provided in this Trust Agreement in respect of the shares
of the Stock.
(B) Upon any exchange or surrender, the Trustee may, if he
considers it to be advisable, issue new Voting Trust Certificates in lieu of and
in exchange for the outstanding Voting Trust Certificates. The Voting Trust
Certificates shall be in the form set forth in this Trust Agreement, with any
changes that are appropriate.
10. (A) The Trustee may serve as a director or officer of the
Company or any successor corporation, and he or any firm of which he may be a
member, or any corporation of which he may be a stockholder, director or
officer, may contract with the Company or any successor corporation, or be
pecuniarily interested in any transaction to which the Company or any successor
corporation may be a party, or in which it may be interested, as fully as though
he were not a Trustee.
(B) The Trustee shall not be liable to any stockholder or the
registered owner or holder of any Voting Trust Certificate for any error of
judgment or for any neglect, default, negligence (including gross negligence)
except for his own willful and deliberate malfeasance.
(C) The Trustee shall not receive any compensation for his
services as Trustee, and he shall not be required to give any bond or security
for the discharge of his duties as Trustee.
(D) The Trustee hereby accepts the trust hereunder, subject to
all the terms and conditions contained in this Trust Agreement, and he agrees to
exercise the powers and perform the duties of Trustee as set forth in this Trust
Agreement.
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11. (A) The trust created by this Trust Agreement is expressly
declared to be irrevocable.
(B) (i) This Trust Agreement shall terminate with respect only
to the shares of Stock that are sold by the Stockholder (a) pursuant to Rule 144
promulgated under the Securities Act of 1933, as amended, or (b) pursuant to the
registration rights granted to the Stockholder in the Registration Rights
Agreement. A termination of this Trust Agreement as to any shares of Stock sold
pursuant to clauses (a) or (b) of the preceding sentence shall not affect any
shares of Stock continuing to be owned by the Stockholder (the "Remaining
Shares"), and this Trust Agreement shall continue in force with respect to the
Remaining Shares until terminated pursuant to Paragraph 11(B)(ii).
(ii) This Trust Agreement shall terminate upon the
earlier of (a) the twentieth anniversary hereof, (b) written notice of
termination by the Trustee, or (c) the death of the Trustee.
(C) (i) In the event of any proposed sale of Stock pursuant to
clauses (a) or (b) of the first sentence of Paragraph 11(B)(i), the Stockholder
shall notify the Trustee of the proposed sale and of the number of shares to be
sold, and, upon receipt of (a) confirmation, in a form reasonably requested by
the Trustee, of the consummation of the sale and (b) the Voting Certificate(s)
representing the purchased Stock, the Trustee shall deliver or request that the
Company deliver to the purchaser stock certificates for the purchased Stock,
and, if necessary, shall deliver to the Stockholder a Voting Certificate for the
Remaining Shares.
(ii) In the event of termination of this Trust Agreement
pursuant to Paragraph 11(B)(ii), as soon as practicable after the termination,
the Trustee shall deliver to or upon the order of the registered owners of the
Voting Trust Certificates, and upon surrender thereof, the shares of Stock
represented thereby, together with any other shares of voting stock of the
Company subject to this Trust Agreement.
12. Any notice or other communication required or permitted by this
Trust Agreement to be given by any party hereto shall be in writing, and any
communication and payment or delivery of securities required to be made by any
party to any other party shall be sent by first class prepaid mail, certified or
registered, return receipt requested, addressed in the case of the Stockholder,
to the address that is provided by the Stockholder and, in the case of the
Trustee to:
A. Dale Mayo
7 Waverly Place
Madison, New Jersey 07940
or in any other manner as any party shall hereafter designate by notice to
the other party.
13. This Trust Agreement shall be legally binding upon, and shall
inure to the benefit of, the Stockholder and their respective heirs, legal
representatives, and permitted successors and assigns.
14. The validity and effectiveness of this Trust Agreement shall be
governed by, and its provisions shall be construed and enforced in accordance
with, the laws of the State of Delaware.
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15. If, for any reason, any provision or part of this Trust
Agreement is held invalid, that invalidity shall not affect any other provision
or the rest of provision of this Trust Agreement, as the case may be, and each
provision or part shall, to the full extent consistent with law, continue in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Trust
Agreement as of the day and year first above written.
F&N CINEMA, INC.:
By: /s/John Nelson
-------------------------
John Nelson
President
ROXBURY CINEMA, INC.:
By: /s/John Nelson
-------------------------
John Nelson
President
Trustee:
/s/ A. Dale Mayo
-------------------------------
A. Dale Mayo
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