SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14 (a) of the Securities Exchange Act of
1934
Filed by the Registrant /X/
Filed by a Party other than the Registrant / /
Check the appropriate box:
/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by
Rule 14a-16(e) (2) )
/X / Definitive Proxy Statement
/ / Definitive Additional Materials
/ / Soliciting Material Pursuant to Rule 240.14a-11(c) or Rule 240.14a-12
AmBase Corporation
(Name of Registrant as Specified in its Charter)
AmBase Corporation
(Name of Person(s) Filing Proxy Statement)
Payment of Filing Fee (Check the appropriate box):
/X / $125 per Exchange Act Rule 0-11(c)(1)(ii), 14a-6(i)(1), 14a-6(i)(2) or
Item 22(a)(2) of Schedule 14A.
/ / $500 per each part to the controversy pursuant to Exchange Act
Rule 14a-6(i)(3).
/ / Fee computed on table below per Exchange Act Rules 14a-6(i) (4) and 0-11.
1) Title of each class of securities to which transaction applies:
- --------------------------------------------------------------------------------
2) Aggregate number of securities to which transaction applies:
- --------------------------------------------------------------------------------
3) Per unit price or other underlying value of transaction computed pursuant to
Exchange Act Rule 0-11(set forth the amount on which the filing fee is
calculated and state how it was determined.):
- --------------------------------------------------------------------------------
4) Proposed maximum aggregate value of transaction.
- --------------------------------------------------------------------------------
5) Total fee paid:
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/ / Check box if any part of the fee is offset as provided by Exchange Rule 0-11
(a) (2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number or
the Form or Schedule and the date of its filing.
1) Amount previously paid: _________________________________________________
2) Form, Schedule or Registration Statement No. ____________________________
3) Filing party: ___________________________________________________________
4) Date filed: _____________________________________________________________
<PAGE>
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD MAY 14, 1999
The 1999 Annual Meeting of Stockholders of AmBase Corporation (the "Company")
will be held at the Hyatt Regency Hotel, 1800 East Putnam Avenue, Greenwich,
Connecticut, on Friday, May 14, 1999 at 9:00 a.m., Eastern Daylight Time, to
consider and act upon the following matters:
1. The election of two directors each to hold office for a three-year term
expiring in 2002;
2. the approval of the appointment of PricewaterhouseCoopers LLP as the
independent accountants of the Company for the year ending December 31,
1999;
and such other matters as may properly come before the meeting or any
adjournments thereof.
The Board of Directors has fixed the close of business on Thursday, April 1,
1999 as the record date for determining stockholders entitled to notice of and
to vote at the meeting.
Whether or not you plan to attend the Annual Meeting, please sign, date and
return the enclosed proxy card in the prepaid envelope provided, as soon as
possible, so your shares can be voted at the meeting in accordance with your
instructions. Your vote is important no matter how many shares you own. If you
plan to attend the meeting and wish to vote your shares personally, you may do
so at any time before your proxy is voted. Your prompt cooperation is greatly
appreciated.
All stockholders are cordially invited to attend the Annual Meeting.
By Order of the
Board of Directors
-------------------------
Michael T. Carenzo
Secretary
Greenwich, CT
March 22, 1999
<PAGE>
AMBASE CORPORATION
51 WEAVER STREET, BUILDING 2
GREENWICH, CT 06831-5155
ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD MAY 14, 1999
PROXY STATEMENT
This Proxy Statement is furnished in connection with the solicitation by the
Board of Directors of AmBase Corporation (the "Company") of proxies to be voted
at the Annual Meeting of Stockholders of the Company (the "Annual Meeting") to
be held at the Hyatt Regency Hotel, 1800 East Putnam Avenue, Greenwich,
Connecticut, at 9:00 a.m., Eastern Daylight Time, on Friday, May 14, 1999, and
at any adjournments thereof. This Proxy Statement and the accompanying proxy are
being mailed to stockholders commencing on or about April 1, 1999.
Shares represented by a duly executed proxy in the accompanying form received by
the Company prior to the Annual Meeting will be voted at the meeting in
accordance with instructions given by the stockholder in the proxy. Any
stockholder granting a proxy may revoke it at any time before it is exercised by
granting a proxy bearing a later date, by giving notice in writing to the
Secretary of the Company or by voting in person at the meeting.
At the Annual Meeting, the stockholders will be asked (i) to re-elect Richard A.
Bianco and John B. Costello as directors of the Company each to serve a
three-year term ending in 2002, and (ii) to approve the appointment of
PricewaterhouseCoopers LLP as independent accountants of the Company for the
year ending December 31, 1999. The persons acting under the accompanying proxy
have been designated by the Board of Directors and, unless contrary instructions
are given, will vote the shares represented by the proxy (i) for the election of
the nominees for directors named above and, (ii) for the approval of the
appointment of PricewaterhouseCoopers LLP as the Company's independent
accountants.
The close of business on Thursday, April 1, 1999, has been fixed by the Board of
Directors as the record date for the determination of stockholders entitled to
notice of and to vote at the Annual Meeting or any adjournments thereof. Only
the holders of record of Common Stock at the close of business on April 1, 1999,
are entitled to vote on the matters presented at the Annual Meeting. Each share
of the Company's Common Stock entitles the holder to one vote on each matter
presented at the Annual Meeting. As of March 15, 1999, the Company had
44,533,519 outstanding shares of Common Stock (excluding treasury stock). A
plurality vote of the holders of the shares of Common Stock represented in
person or by proxy and voting at the Annual Meeting is required for the election
of the directors. The affirmative vote of the holders of a majority of the
shares of Common Stock represented in person or by proxy and voting at the
Annual Meeting is necessary for the approval of PricewaterhouseCoopers LLP as
independent accountants.
Abstentions, votes withheld and shares not voted, including broker non-votes,
are not included in determining the number of votes cast for the approval of
PricewaterhouseCoopers LLP as independent accountants. Abstentions, votes
withheld and broker non-votes are counted for purposes of determining whether a
quorum is present at the Annual Meeting.
-1-
<PAGE>
PROPOSAL NO. 1 - ELECTION OF DIRECTORS
In accordance with the method of electing directors by class with terms expiring
in different years, as required by the Company's Restated Certificate of
Incorporation, two directors will be elected at the Company's 1999 Annual
Meeting of Stockholders to hold office until the Company's Annual Meeting of
Stockholders for the year 2002. The directors will serve until their successors
shall be elected and shall qualify.
The persons named below have been nominated for directorship. The nominees are
directors now in office, and have indicated a willingness to accept re-election.
It is intended that at the Annual Meeting the shares represented by the
accompanying proxy will be voted for the election of these nominees unless
contrary instructions are given. In the event that the nominee(s) should become
unavailable for election as a director at the time the Annual Meeting is held,
shares represented by proxies in the accompanying form will be voted for the
election of a substitute nominee(s) elected by the Board of Directors, unless
contrary instructions are given or the Board by resolution shall have reduced
the number of directors. The Board is not aware of any circumstances likely to
render the nominee(s) unavailable.
Information Concerning the Nominees for Election as Directors
The name, age, principal occupation, other business affiliations, and certain
other information concerning the nominees for election as a director of the
Company are set forth below.
Richard A. Bianco, 51. Mr. Bianco was elected a director of the Company in
January 1991, and has served as President and Chief Executive Officer of the
Company since May 1991. On January 26, 1993, Mr. Bianco was elected Chairman of
the Board of Directors of the Company. He served as Chairman, President and
Chief Executive Officer of Carteret Savings Bank, FA ("Carteret"), then a
subsidiary of the Company, from May 1991 to December 1992. Mr. Bianco served as
Chairman and a director of Whitehill Capital, Inc. from September 1990 to June
1991. If elected, his term will expire in 2002.
John B. Costello, 61. Mr. Costello spent twenty-five years in the transportation
industry in which he founded and operated companies which were purchased by
Ryder Systems, Inc. ("Ryder"). He served three years as President of United
States Packing and Shipping Company, a subsidiary of Ryder. He has been a
private investor since 1989. Mr. Costello was elected a director of the Company
in August 1993. If elected, his term will expire in 2002.
Information Concerning Director(s) Continuing in Office
Certain information concerning the director(s) of the Company whose terms do not
expire in 1999 is set forth below.
Robert E. Long, 67. Mr. Long was elected a director of the Company in October
1995. Mr. Long currently is the Chairman and Chief Executive Officer of Emerald
City Radio Partners, Inc., which owns radio stations. He is also currently the
Vice President of Goodwyn, Long & Black Investment Management, Inc., a
registered investment advisor. He was co-founder, Chairman and Chief Executive
Officer of Southern Starr Broadcasting Group, Inc. ("Southern Starr"), until
March 1995, when Southern Starr was sold. Prior to his employment as Chief
Executive Officer of Southern Starr, he was President of Potomac Asset
Management, Inc., a registered investment company. Mr. Long is a chartered
financial analyst and is a graduate of the George Washington School of Law. He
has been a principal, officer and director of two New York Stock Exchange member
firms, and has arranged financing for numerous companies during his thirty-year
career, including several radio and television properties. In addition to his
service as a director of AmBase, Mr. Long serves as a director of Allied Capital
Corporation, C.S.C. Scientific, Inc., American Heavy Lift Shipping Co., Inc.,
Global Travel, Inc., Business News Network, Inc., Emerald City Radio Partners,
Inc. and Goodwyn, Long & Black Investment Management, Inc. His term will expire
in 2000.
The Company presently has three directors.
-2-
<PAGE>
INFORMATION CONCERNING THE BOARD AND ITS COMMITTEES
Meetings and Attendance
During 1998, the Company's Board of Directors held 4 meetings. All directors
attended at least 75% of the meetings of the Board of Directors and the
committees of the Board on which they served.
Committees of the Board
The Board of Directors currently has (i) an Accounting and Audit Committee and
(ii) a Personnel Committee.
The Accounting and Audit Committee met 4 times during 1998. The Accounting and
Audit Committee currently consists of Robert E. Long, Chairman, and John B.
Costello. Mr. Long and Mr. Costello are independent directors of the Company and
are not officers or employees of the Company.
The principal functions of the Accounting and Audit Committee are to review, in
conjunction with the Company's independent accountants, the accounting and
auditing practices and procedures followed by the Company, its subsidiaries and
their accountants, and to advise and consult with the Company's officers and
make recommendations to the Board with respect to internal and external audit
matters affecting the Company, including recommendation for the appointment of
independent accountants of the Company.
The Personnel Committee held 2 meetings in 1998. The Personnel Committee
currently consists of Mr. Costello, Chairman, and Mr. Long. Mr. Costello and Mr.
Long are independent directors of the Company and are not officers or employees
of the Company.
The principal functions of the Personnel Committee are to consider and recommend
nominees for the Board, to oversee the performance and approve the remuneration
of officers and senior employees of the Company and its subsidiaries and to
oversee and approve the employee benefit and retirement plans of the Company and
its subsidiaries. The Personnel Committee will consider stockholder
recommendations for director, submitted in accordance with the Company's
By-Laws.
The Company's By-Laws require that in the event a stockholder wishes to nominate
a person for election as a director, advance notice must be given to the
Secretary of the Company not less than 120 days in advance of the date of the
Company's proxy statement released to stockholders in connection with the
previous year's annual meeting of stockholders, except that if no annual meeting
was held in the previous year or the date of the annual meeting has been changed
by more than 30 calendar days from the date contemplated at the time of the
previous year's proxy statement, a proposal shall be received by the Company a
reasonable time before the solicitation is made, together with the name and
address of the stockholder and of the person to be nominated; a representation
that the stockholder is entitled to vote at the meeting and intends to appear in
person or by proxy to make the nomination; a description of arrangements or
understandings between the stockholder and others pursuant to which the
nomination is to be made; such other information regarding the nominee as would
be required in a proxy statement filed under the proxy rules of the Securities
and Exchange Commission (the "SEC"); and the consent of the nominee to serve as
a director if elected.
Section 16(a) Beneficial Ownership Reporting Compliance
Based solely upon a review of the forms filed with the Securities and Exchange
Commission and written representations received by the Company pursuant to the
requirements of Section 16(a) of the Securities Exchange Act of 1934, the
Company believes that, during 1998, only one transaction was not timely
reported. Mr. Costello inadvertently failed to file one Form 4 for a purchase
transaction in October 1998, which was subsequently reported on a Form 5 filed
in February 1999.
-3-
<PAGE>
EXECUTIVE COMPENSATION
The following table sets forth the total compensation earned by the Chief
Executive Officer and each other executive officer of the Company and its
subsidiaries (the "Named Executive Officers") for services rendered to the
Company during the last three fiscal years:
<TABLE>
Summary Compensation Table
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Long-Term Compensation
Annual Compensation Awards Payouts
Restricted
Other Annual Stock Options/ LTIP All Other
Name and Principal Salary Bonus Compensation Award(s) SARs Payouts Compensation
Position Year ($) ($)(1) ($)(2) ($) (#) ($) ($)(3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Richard A. Bianco 1998 $500,000 $825,000 $10,989 ---- ---- ---- $13,728
Chairman, President 1997 $500,000 $825,000 $ 9,601 ---- ---- ---- $ 8,687
and Chief Executive 1996 $500,000 $825,000 $ 9,392 ---- ---- ---- $ 8,387
Officer of the
Company
- -------------------------------------------------------------------------------------------------------------
John P. Ferrara 1998 $ 95,000 $ 50,000 $ 1,113 ---- ---- ---- $ 4,521
Vice President, Chief 1997 $ 95,000 $ 20,000 $ 1,120 ---- ---- ---- $ 4,821
Financial Officer 1996 $ 95,000 $ 30,000 $ 1,076 ---- ---- ---- $ 4,450
& Controller
of the Company
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Amounts include bonuses earned for the years indicated and paid in the
following fiscal year, consistent with the past practice of the Company.
(2) Other Annual Compensation shown above includes reimbursement to designated
executive officers for the income tax costs associated with their
participation in the long-term disability plans and supplemental life
insurance plans of the Company. The aggregate incremental cost to the
Company for perquisites and other personal benefits paid to each named
executive officer (including, depending upon the executive officer,
supplemental life insurance benefits, other personal benefits, the use of
Company provided transportation and reimbursement for tax services for Mr.
Bianco) in each instance aggregated less than $50,000 or 10% of the total
annual salary and bonus for each Named Executive Officer and, accordingly,
is omitted from the table.
(3) Amounts included as All Other Compensation in 1998 include the following:
The Company's contributions to the AmBase 401(k) Savings Plan, excluding
employee earnings reductions: Mr. Bianco, $9,343 and Mr. Ferrara, $3,527;
and costs associated with participation in the supplemental term life
insurance plans of the Company: Mr.
Bianco, $4,385 and Mr. Ferrara, $994.
-4-
<PAGE>
Stock Options/SAR Grants During 1998
The following table sets forth information concerning stock options granted
during the year ended December 31, 1998 to the Named Executive Officers. The
Company does not have any outstanding SAR's.
<TABLE>
<CAPTION>
Potential Realizable
Value at Assumed Annual
Rates of Stock Price
Individual Grants Appreciation for Option Term
------------------------------------------------------------------ ----------------------------
Number of Securities Percent of
Underlying Total Options/ Exercise or
Options/SARs SARs Granted to Base Price Expiration
Name Granted(#) Employees in Yea ($/Share) Date 5% 10%
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Richard A. Bianco 45,000 53% $4.02 1/23/2003 $219,888 $264,857
John P. Ferrara 5,000 6% $3.65 1/23/2008 $ 28,312 $ 43,033
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Aggregate Option/SAR Values as of December 31, 1998
None of the Named Executive Officers exercised a stock option of the Company
during 1998. The Company does not have any outstanding SARs. The following table
sets forth information concerning the fiscal year-end value of unexercised
options held by the Named Executive Officers on December 31, 1998 as follows:
<TABLE>
<CAPTION>
Number of Securities
Underlying Value of Unexercised
Unexercised In-the-Money
Options/SARs at Options/SARs at
December 31, 1998 December 31, 1998
Number of --------------------------- ----------------------------
Shares Acquired
Upon Exercise of Value Realized
Name Option Upon Exercise Exercisable Unexercisable Exercisable Unexercisable
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Richard A. Bianco - - 1,650,000 45,000 $4,106,250 -
John P. Ferrara - - 100,000 5,000 $ 242,500 -
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
No awards under the long-term incentive plan were made to the Named Executive
Officers in 1998, and none of the stock options previously awarded to any of the
Named Executive Officers were repriced during 1998.
Retirement Benefits
One current executive officer and certain former officers of the Company are
participants in the Supplemental Retirement Plan (the "Supplemental Plan"), an
unfunded retirement plan under which benefit payments to participants are based
on a varying percentage (historically ranging from 2.5% to 4%, determined on an
individual basis by the Personnel Committee) of the participant's average base
salary and bonus (averaged over the three years of credited service that will
produce the highest average) multiplied by the number of years of the
participant's credited service, up to 20 years, plus 1% of his or her average
base salary and bonus multiplied by his or her years of credited service from 20
to 25 years, plus 0.5% of his or her average base salary and bonus multiplied by
his or her years of credited service in excess of 25 years. Benefits vest after
ten years of service although the Personnel Committee may waive or reduce the
ten-year service requirement for individual participants. Upon the election of a
vested participant whose employment has terminated after ten years of service or
after a Change in Control of the Company, the actuarial equivalent of benefits
will be paid in a lump-sum. The Personnel Committee, in its discretion, may
waive or reduce the ten-year service requirement for lump-sum payments. Mr.
Bianco is the only current executive officer of the Company who participates in
the Supplemental Plan.
-5-
<PAGE>
The following table presents, for representative periods of credited service,
estimated annual benefits payable upon retirement at the normal retirement age
of 60 (under the Supplemental Plan) to hypothetical vested participants in the
Supplemental Plan, in the form of a ten-year certain and life annuity. For
purposes of the Supplemental Plan, accrual has been assumed at the rate of 4%
per year.
Years of Credited Service
- -----------------------------------------------------------------------------
Assumed Final
Average Earnings 15 20 25 30 35
- -----------------------------------------------------------------------------
$ 125,000 $ 75,000 $ 100,000 $ 106,250 $ 109,375 $ 112,500
200,000 120,000 160,000 170,000 175,000 180,000
400,000 240,000 320,000 340,000 350,000 360,000
600,000 360,000 480,000 510,000 525,000 540,000
800,000 480,000 640,000 680,000 700,000 720,000
1,000,000 600,000 800,000 850,000 875,000 900,000
1,200,000 720,000 960,000 1,020,000 1,050,000 1,080,000
1,400,000 840,000 1,120,000 1,190,000 1,225,000 1,260,000
1,600,000 960,000 1,280,000 1,360,000 1,400,000 1,440,000
Years of credited service as of March 1, 1999, for the purposes of computing
accrued benefits are: Mr. Bianco, 7.83 years. Mr. Bianco had no vested service
in the AmBase Retirement Plan and received no payments in connection with the
termination of the AmBase Retirement Plan. No other employee of the Company has
credited service under the Supplemental Plan.
AmBase 401(k) Savings Plan and Retirement Benefits
The Company sponsors the AmBase 401(k) Savings Plan (the "Savings Plan"), which
is a "Section 401(k) Plan" within the meaning of the Internal Revenue Code of
1986, as amended (the "Code"). The Savings Plan permits eligible employees to
make contributions of up to 15% of salary, which are matched by the Company at a
percentage determined annually. The employer match is currently 100% of the
first 3% of the employee's salary eligible for deferral. Employee contributions
to the Savings Plan are invested at the employee's discretion, in various
investment funds. The Company's matching contributions are invested in the same
manner as the salary reduction contributions. All contributions are subject to
maximum limitations contained in the Code.
COMPENSATION OF DIRECTORS
The annual fee to be paid to all directors who are not employees of or
consultants to the Company is $7,500. The annual fees are payable in December,
provided that a director who is not an employee of or consultant to the Company
attends at least 75% of all meetings during the calendar year. In December 1998,
Mr. Costello and Mr. Long each received $7,500 for their services on the Board
during 1998. In January 1999, Mr. Bianco received a stock option grant of 45,000
shares in his capacity as President and Chief Executive Officer. Pursuant to the
Company's By-Laws, directors may be compensated for additional services for the
Board of Directors or for any Committee at the request of the Chairman of the
Board or the Chairman of any Committee. No additional fees were paid to outside
directors in 1998.
Compensation Committee Interlocks and Insider Participation
The Personnel Committee of the Board of Directors is the committee whose
functions are equivalent to those of a compensation committee. The Committee
members during 1998 were John B. Costello, Chairman, and Robert E. Long. Mr.
Costello and Mr. Long are independent directors of the Company and are not
officers or employees of the Company.
EMPLOYMENT CONTRACTS
An employment agreement, as amended, is in effect between Mr. Bianco and the
Company which provides for him to serve as Chairman, President and Chief
Executive Officer of the Company at an annual base salary of $500,000 through
May 31, 2002. The employment agreement also provides for additional benefits,
including his participation in various employee benefit plans, annual bonus
eligibility, certain long-term disability benefits and the accrual of benefits
under the Company's Supplemental Retirement Plan at 4% of his average base
salary and bonus, and 100% vesting in his accrued benefits.
-6-
<PAGE>
PERSONNEL COMMITTEE REPORT ON EXECUTIVE COMPENSATION
The Personnel Committee (the "Committee") is responsible for fixing compensation
and other employee benefits for executive officers of the Company. The
Committee's executive compensation philosophy is to provide competitive levels
of compensation to its executive officers through a combination of base salary,
incentive awards and equity in the Company. It is designed to reward above
average corporate performance, recognize individual initiative and achievement
and assist the Company in attracting and retaining qualified management.
Management compensation is intended to be set at levels that the Committee
believes fairly reflect the challenges confronted by management.
Overview and Philosophy
The Committee believes that the objectives of executive compensation are to
attract, motivate and retain the highest quality executives, align the interests
of these executives with those of the Company's stockholders by encouraging
stock ownership by executive officers to promote a proprietary interest in the
Company's success and to provide incentives to achieve the Company's goals. In
furtherance of these objectives, the Company's executive compensation policies
are designed to focus the executive officers on the Company's goals. The
Committee determines salary, bonuses and equity incentives based upon the
performance of the individual executive officer and the Company.
Executive Officers and Chief Executive Officer Compensation
Base salaries for executive officers are determined initially by evaluating the
responsibilities of the position, the experience of the individual and the
competition in the marketplace for management talent, including companies
confronting problems of the magnitude and complexity faced by the Company.
Annual salary adjustments are determined by evaluating a number of factors. The
most important factor is the performance of the executive, followed by the
performance of the Company, any increased responsibilities assumed by the
executive and the competition in the marketplace for similarly experienced
executives. Salary adjustments are determined and normally made at twelve month
intervals. Mr. Bianco, the Chief Executive Officer, did not receive a salary
adjustment for 1998.
In January 1999, the Committee approved cash bonuses for officers and employees
for 1998. Factors considered included performance of the executive, performance
of the Company, total compensation level, the Company's financial position and
other pertinent factors. This analysis is necessarily a subjective process which
utilizes no specific weighting or formula with respect to the described factors
in determining cash bonuses. Mr. Bianco was paid a bonus of $825,000 in
recognition of his focused management of the Company's significant litigation,
particularly the Supervisory Goodwill litigation, and his leadership role in
successfully negotiating the collection of the Company's $12.7 million
receivable from Home Holdings, Inc., plus an additional $2.5 million, despite
Home Holdings, Inc. bankruptcy proceedings. In addition, Mr. Bianco was
instrumental in successfully preserving the Company's rights to pursue certain
other disputed claims against Home Holdings, Inc., as more fully described in
the Company's Annual Report on Form 10-K for the year ended December 31, 1998.
The Company believes that its compensation programs, carefully mixing equity and
cash incentives, will focus the efforts of the Company's executive officers on
long-term growth for the benefit of the Company and its stockholders.
Personnel Committee: John B. Costello (Chairman)
Robert E. Long
-7-
<PAGE>
STOCK PERFORMANCE GRAPH
The following graph compares the price performance of the Company's Common Stock
for the past five years with the performance of the Standard & Poor's Financial
Index and the Standard & Poor's 500 Stock Index (S&P 500). The Standard & Poor's
Financial Index was selected because it includes companies similar in nature to
the Company through most of the five year period. The stock price performance
shown in the graph below should not be considered indicative of potential future
stock price performance.
Years Ending December 31
- --------------------------------------------------------------------------------
1993
Company/Index Base Period 1994 1995 1996 1997 1998
- --------------------------------------------------------------------------------
AmBase 100.00 75.09 169.76 1,014.85 1,446.62 952.11
S&P Financial Index 100.00 101.32 139.40 171.40 228.59 293.91
S&P 500 Index 100.00 96.47 148.58 200.83 297.44 331.42
- --------------------------------------------------------------------------------
-8-
<PAGE>
STOCK OWNERSHIP
Stock Ownership of Certain Beneficial Owners
The following information is set forth with respect to persons known by the
Company to be the beneficial owners of more than 5% of the Company's outstanding
Common Stock, the Company's only class of voting securities, as of January 29,
1999 for Mr. Bianco, and as of February 12, 1999 for Mr. Lewittes and Mr. Jaffe,
pursuant to their Schedule 13G.
- --------------------------------------------------------------------------------
Amount and Percentage
Name and Address of Nature of Beneficial of Common
Beneficial Owner Ownership Stock Owned
- --------------------------------------------------------------------------------
Richard A. Bianco 9,174,100 (a) 19.85%
Chairman, President and (direct)
Chief Executive Officer
AmBase Corporation
51 Weaver Street, Bldg. 2
Greenwich, CT 06831-5155
Mr. Michael L. Lewittes and 4,016,100 (b) 9.02%
Mr. Robert S. Jaffe
655 Madison Ave., 21st Fl.
New York, NY 10021
(a) Includes the number of shares that could be purchased by the exercise of
options as of January 29, 1999 or within 60 days thereafter, under the
Company's Stock Option Plans.
(b) On a Schedule 13G dated February 16, 1999, Mr. Michael L. Lewittes and Mr.
Robert S. Jaffe reported that, as of February 12, 1999, they beneficially
owned 4,016,100 shares of the Company's Common Stock, representing 9% of
the Common Stock outstanding. Messrs. Lewittes and Jaffe beneficially own
the Common Stock referred to above through a number of entities and managed
accounts through which they share control over the voting and disposition
of such Common Stock. Such entities and managed accounts have the right to
receive or the power to direct the receipt of dividends from or the
proceeds from the sale of such Common Stock. No such entity or managed
account owns more than 5% of the outstanding Common Stock.
Stock Ownership of Directors and Executive Officers
According to information furnished by each nominee, continuing director and
executive officer included in the Summary Compensation Table, the number of
shares of the Company's Common Stock beneficially owned by them as of January
29, 1999 was as follows:
- --------------------------------------------------------------------------------
Amount Percentage
Name of Beneficial and Nature of of Common
Owner Beneficial Ownership (a) Stock Owned
- --------------------------------------------------------------------------------
Richard A. Bianco................... 9,174,000 (b) 19.85%
John B. Costello.................... 35,000 *
John P. Ferrara..................... 103,529 (b) *
Robert E. Long...................... 5,000 *
All Directors and Officers as a group,
(4 persons) including those named above 9,317,629 20.12%
* Represents less than 1% of Common Stock outstanding
(a) Except as otherwise noted, the named individuals have sole voting and
investment power with respect to such shares.
(b) Includes 1,672,500 shares for Mr. Bianco and 102,500 shares for Mr. Ferrara
that could be purchased by the exercise of stock options as of January 29,
1999 or within 60 days thereafter, under the Company's stock option plans.
-9-
<PAGE>
PROPOSAL NO. 2 - APPOINTMENT OF ACCOUNTANTS
Based on the recommendation of the Accounting and Audit Committee, the Board of
Directors is proposing that the stockholders approve the appointment of
PricewaterhouseCoopers LLP as the independent accountants of the Company for the
year ending December 31, 1998. The Company has been advised by
PricewaterhouseCoopers LLP that neither that firm nor any of its partners had
any direct financial interest or any material indirect financial interest in the
Company, or any of its subsidiaries, except as independent certified public
accountants. A representative of PricewaterhouseCoopers LLP is expected to be
present at the Annual Meeting with the opportunity to make a statement, if he or
she desires to do so, and to respond to appropriate questions from the
stockholders.
Management recommends a vote FOR approval of the appointment of
PricewaterhouseCoopers LLP.
ADDITIONAL INFORMATION
The Annual Report of the Company on Form 10-K, covering the fiscal year ended
December 31, 1998, is being mailed with this Proxy Statement to each stockholder
entitled to vote at the Annual Meeting.
Stockholders not receiving a copy of the Annual Report on Form 10-K may obtain
one by contacting: American Stock Transfer and Trust Company, 40 Wall Street,
46th Floor, New York, NY 10005, Attention: Stockholder Services, (800) 937-5449
or (718) 921-8200.
Any stockholder who wishes to submit a proposal for action to be included in the
Proxy Statement for the Company's 2000 Annual Meeting of Stockholders must
submit such proposal so that it is received by the Secretary of the Company by
December 2, 1999.
The accompanying proxy is solicited by and on behalf of the Company's Board of
Directors. The cost of such solicitation will be borne by the Company. In
addition to solicitation by mail, regular employees of the Company may, if
necessary to assure the presence of a quorum, solicit proxies in person, or by
telephone, facsimile or other electronic means. Arrangements have been made with
brokerage houses and other custodians, nominees and fiduciaries for the
forwarding of solicitation material to the beneficial owners of Common Stock
held of record by such persons, and the Company will reimburse such entities for
reasonable out-of-pocket expenses incurred in connection therewith. The Company
has engaged American Stock Transfer & Trust Company to assist in the tabulation
of proxies.
If any matter not described in this Proxy Statement should properly come before
the Annual Meeting, the persons named in the accompanying proxy will vote the
shares represented by that proxy in accordance with their best judgment unless a
stockholder, by striking out the appropriate provision of the proxy, chooses to
withhold authority to vote on such matters.
As of the date this Proxy Statement was printed, the directors knew of no other
matters to be brought before the meeting.
All other stockholder inquiries, including requests for the following: (i)
change of address; (ii) replacement of lost stock certificates; (iii) Common
Stock name registration changes; (iv) Quarterly Reports on Form 10-Q; (v) Annual
Reports on Form 10-K; (vi) proxy material; and (vii) information regarding
stockholdings, should be directed to American Stock Transfer & Trust Company, 40
Wall Street, 46th Floor, New York, New York 10005, Attention: Stockholder
Services, (800) 937-5449 or (718) 921-8200.
In addition, the Company's public reports, including Quarterly Reports on Form
10-Q, Annual Reports on Form 10-K and Proxy Statements, can be obtained through
the Securities and Exchange Commission's EDGAR Database, over the World Wide Web
at www.sec.gov.
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<PAGE>
AMBASE CORPORATION
PROXY FOR THE ANNUAL MEETING OF STOCKHOLDERS
TO BE HELD ON FRIDAY, MAY 14, 1999 This Proxy is Solicited
on Behalf of the Board of Directors
The undersigned revoking all prior proxies, hereby appoints Richard A. Bianco
and John P. Ferrara and each of them, with full power of substitution, as
proxies to represent and vote, as designated on the reverse, all shares of
Common Stock of AmBase Corporation (the "Company"), held or owned by the
undersigned, at the Annual Meeting of Stockholders of the Company, to be held on
Friday, May 14, 1999 at 9:00 a.m. Eastern Daylight Time, at the Hyatt Regency
Hotel, 1800 East Putnam Avenue, Greenwich, Connecticut, and at any
adjournment(s) or postponement(s) thereof, with all powers which the undersigned
would possess if personally present, and in their discretion upon such other
business as may properly come before the meeting or any adjourment(s) or
postponement(s) thereof.
This proxy is given with authority to vote FOR Proposals (1) and (2), unless a
contrary choice is specified.
(CONTINUED AND TO BE SIGNED ON REVERSE SIDE)
/X/ Please mark your vote as in this example.
Proposal (1) Election of Directors.
Nominees: Richard A. Bianco
John B. Costello
[INSTRUCTION: To withhold authority to vote for any individual nominee, strike a
line through the nominee's name in the list above.]
FOR / / AGAINST / / ABSTAIN / /
Proposal (2) Approval of Appointment of PricewaterhouseCoopers LLP as
Independent Accountants for the calendar year 1999.
FOR / / AGAINST / / ABSTAIN / /
THE PROXY WILL BE USED IN CONNECTION WITH THE PROPOSALS ABOVE AS SPECIFIED BY
YOU. IF NO SPECIFICATION IS MADE, THE PROXY WILL BE USED IN ACCORDANCE WITH THE
DIRECTORS' RECOMMENDATIONS, FOR ALL PROPOSALS.
PLEASE MARK, DATE AND SIGN AS YOUR NAME APPEARS ABOVE AND RETURN IN THE ENCLOSED
ENVELOPE.
SIGNATURE --------------------------- DATE ---------
SIGNATURE --------------------------- DATE----------
IF HELD JOINTLY
NOTE: Please sign name exactly as it appears hereon. Joint owners should each
sign. When signing as attorney, as executor, administrator, trustee or guardian,
please give full title as such.
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