<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
---------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) December 15, 1997
------------------
PREMIER PARKS INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
Delaware 0-9789 73-613774
- --------------- ---------- --------------------
<S> <C> <C>
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
</TABLE>
11501 Northeast Expressway, Oklahoma City, Oklahoma 63131
----------------------------------------------------------
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (405) 475-2500
--------------
-------------------------------------------------------------
(Former name or former address, if changed since last report)
Page 1
<PAGE>
Item 5. Other Events
Walibi Acquisition Agreement
On December 15, 1997, the Company entered into an agreement with three
of the principal stockholders of Walibi, S.A. ("Walibi") pursuant to which
the Company expects to purchase in March 1998 approximately 50% of the
outstanding capital stock of Walibi (the "Private Acquisition"). Following
the closing of the Private Acquisition, the Company will commence a "public
takeover bid," as defined and regulated under Belgian law (the "Walibi Tender
Offer"), for the remainder of the outstanding capital stock of Walibi.
Walibi is a corporation (societe anonyme) organized under the laws of
Belgium. Walibi's stock is currently traded on the Official Market of the
Brussels Stock Exchange. It owns six theme parks (the "Walibi Parks"), two
located in Belgium, one in The Netherlands and three in France, as well as
two smaller attractions in Belgium. Walibi's operations had combined 1997
attendance of approximately 3.5 million.
The transaction values Walibi at approximately $139.5 million (at the
exchange rate of Belgian Francs ("BEF") 37.065 to US$1 on December 31, 1997),
based on a multiple of seven times Walibi's 1997 EBITDA. This amount includes
the assumption or refinancing of Walibi net indebtedness (total debt less
cash and cash equivalents) which aggregated approximately $54.3 million at
December 31, 1997. As a result, the aggregate consideration to be paid by the
Company for the outstanding stock of Walibi (assuming the Company acquires
100% of the outstanding Walibi capital stock pursuant to the Walibi Tender
Offer) will be $85.2 million (based on the year-end exchange rate). The
purchase price in the Private Acquisition will be paid 80% in cash in BEF and
20% in Premier Common Stock (approximately 229,000 shares). Under the terms
of the agreement, the Company has agreed to invest at least BEF 1.4 billion
(approximately $38 million based on the year-end exchange rate) in the Walibi
Parks over the three years commencing with the 1999 season.
A copy of the Consolidated Financial Statements of Walibi at December
31, 1996 and 1997 and for each of the years in the two-year period ended
December 31, 1997 have been filed herewith.
2
<PAGE>
Adoption of Stockholder Rights Plan
On December 31, 1997, the Board of Directors of the Company announced
that it had declared a dividend of one Preferred Stock Purchase Right (the
"Right(s)") for each outstanding share of Common Stock, par value $0.05 per
share (the "Common Stock"), of the Company. The dividend is payable as of
January 12, 1998 to stockholders of record on that date. When granted, each
Right entitled the registered holder to purchase from the Company one
one-hundredth (1/100) of a share of a new series of preferred shares of the
Company, designated as Series A Junior Preferred Stock ("Preferred Stock"),
at a price of $250.00 per one one-hundredth (1/100) of a share (the "Exercise
Price"), subject to certain adjustments. On February 4, 1998, the Board of
Directors approved an amendment to the terms to provide that each Right shall
entitle the registered holder to purchase one one-thousandth (1/1000) of a
share of Preferred Stock at an Exercise Price of $250.00 per one
one-thousandth (1/1000) of a share. The description and terms of the Rights
are set forth in the Amended and Restated Rights Agreement (the "Rights
Agreement") between the Company and Bank One Trust Company, N.A., as Rights
Agent ("Rights Agent").
Initially the Rights will not be exercisable, certificates will not be
sent to stockholders, and the Rights will automatically trade with the
Common Stock.
The Rights, unless earlier redeemed by the Board of Directors, become
exercisable upon the close of business on the day (the "Distribution Date")
which is the earlier of (i) the tenth day following a public announcement
that a person or group of affiliated or associated persons, with certain
exceptions set forth below, has acquired beneficial ownership of 15% or
more of the outstanding voting stock of the Company (an "Acquiring Person")
and (ii) the tenth business day (or such later date as may be
3
<PAGE>
determined by the Board of Directors prior to such time as any person or
group of affiliated or associated persons becomes an Acquiring Person)
after the date of the commencement or announcement of a person's or group's
intention to commence a tender or exchange offer the consummation of which
would result in the ownership of 15% or more of the Company's outstanding
voting stock (even if no shares are actually purchased pursuant to such
offer); prior thereto, the Rights would not be exercisable, would not be
represented by a separate certificate, and would not be transferable apart
from the Company's Common Stock, but will instead be evidenced, with
respect to any of the Common Stock certificates outstanding as of January
12, 1998, by such Common Stock certificate with a copy of this Summary of
Rights attached thereto. An Acquiring Person does not include (A) the
Company, (B) any subsidiary of the Company, (C) any employee benefit plan
or employee stock plan of the Company or of any subsidiary of the Company,
or any trust or other entity organized, appointed, established or holding
Common Stock for or pursuant to the terms of any such plan or (D) any
person or group whose ownership of 15% or more of the shares of voting
stock of the Company then outstanding results solely from (i) any action or
transaction or transactions approved by the Board of Directors before such
person or group became an Acquiring Person or (ii) a reduction in the
number of issued and outstanding shares of voting stock of the Company
pursuant to a transaction or transactions approved by the Board of
Directors (provided that any person or group that does not become an
Acquiring Person by reason of clause (i) or (ii) above shall become an
Acquiring Person upon acquisition of an additional 1% of the Company's
voting stock unless such acquisition of additional voting stock will not
result in such person or group becoming an Acquiring Person by reason of
such clause (i) or (ii)).
4
<PAGE>
Until the Distribution Date (or earlier redemption or expiration of the
Rights), new Common Stock certificates issued after January 12, 1998 will
contain a legend incorporating the Rights Agreement by reference. Until the
Distribution Date (or earlier redemption or expiration of the Rights), the
surrender for transfer of any of the Company's Common Stock certificates
outstanding as of January 12, 1998 with or without a copy of the Summary of
Rights attached, will also constitute the transfer of the Rights associated
with the Common Stock represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights
("Right Certificate") will be mailed to holders of record of the Company's
Common Stock as of the close of business on the Distribution Date and such
separate certificates alone will evidence the Rights from and after the
Distribution Date.
The Rights are not exercisable until the Distribution Date. The Rights
will expire at the close of business on January 12, 2008, unless earlier
redeemed by the Company as described below. Further, unless earlier redeemed or
exercised pursuant to the terms of the Rights Agreement, the Rights shall
expire immediately prior to the effective time of any merger to be
consummated by the Company pursuant to Section 251(g) of the Delaware General
Corporation Law (the "DGCL"), provided that the Company shall cause any
successor company pursuant to such merger to enter into a rights agreement
substantially identical in form and substance to the Rights Agreement. As
previously disclosed, the Company intends to consummate a merger pursuant to
Section 251(g) of the DGCL whereby the Company will merge with and into Premier
Parks Merger Corporation, a wholly-owned subsidiary of Premier Parks Holdings
Corporation ("Holdings"), which is a wholly-owned subsidiary of the Company.
Following this merger, the Company, which will change its name to Premier
Parks Operations Inc., will be a wholly-owned subsidiary of Holdings which,
upon effectiveness of the merger, will change its name to Premier Parks Inc.
At such time, Holdings will enter into a rights agreement substantially
identical in form and substance to the Rights Agreement.
The Preferred Stock is non-redeemable and, unless otherwise provided in
connection with the creation of a subsequent series of preferred stock,
subordinate to any other series of the Company's preferred stock. The
Preferred Stock may not be issued except upon exercise of Rights. Each share
of Preferred Stock will be entitled to receive when, as and if declared, a
quarterly dividend in an amount equal to the greater of $10.00 per share and
1000 times the cash dividends declared on the Company's Common Stock. In
addition, the Preferred Stock is entitled to 1000 times any non-cash
dividends (other than dividends payable in equity securities) declared on the
Common Stock, in like kind. In the event of liquidation, the holders of
Preferred Stock will be entitled to receive for
5
<PAGE>
each share, a liquidation payment in an amount equal to the greater of
$250,000.00 or 1000 times the payment made per share of Common Stock. Each
share of Preferred Stock will have 1000 votes, voting together with the
Common Stock. In the event of any merger, consolidation or other
transaction in which Common Stock is exchanged, each share of Preferred
Stock will be entitled to receive 1000 times the amount received per share
of Common Stock. The rights of Preferred Stock as to dividends,
liquidation and voting are protected by anti-dilution provisions.
The number of shares of Preferred Stock issuable upon exercise of the
Rights is subject to certain adjustments from time to time in the event of
a stock dividend on, or a subdivision or combination of, the Common Stock.
The Exercise Price for the Rights is subject to adjustment in the event of
extraordinary distributions of cash or other property to holders of Common
Stock.
Unless the Rights are earlier redeemed, in the event that, after the
time that a Person becomes an Acquiring Person, the Company were to be
acquired in a merger or other business combination (in which any shares of
the Company's Common Stock are changed into or exchanged for other
securities or assets) or more than 50% of the assets or earning power of
the Company and its subsidiaries (taken as a whole) were to be sold or
transferred in one or a series of related transactions, the Rights
Agreement provides that proper provision will be made so that each holder
of record of a Right will from and after such date have the right to
receive, upon payment of the Exercise Price, that number of shares of
common stock of the acquiring company having a market value at the time of
such transaction equal to two times the Exercise Price. In addition,
unless the Rights are earlier redeemed, if a person or group (with certain
exceptions) becomes the beneficial
6
<PAGE>
owner of 15% or more of the Company's voting stock, the Rights Agreement
provides that proper provision will be made so that each holder of record
of a Right, other than the Acquiring Person (whose Rights will thereupon
become null and void), will thereafter have the right to receive, upon
payment of the Exercise Price, that number of shares of the Company's
Preferred Stock having a market value at the time of the transaction equal
to two times the Exercise Price (such market value to be determined with
reference to the market value of the Company's Common Stock as provided in
the Rights Agreement). The Rights Agreement also grants the Board of
Directors the option, after any person or group acquires beneficial
ownership of 15% or more of the voting stock but before there has been a
50% acquisition, to exchange one share of common stock for each then valid
right (which would exclude rights held by the Acquiring Person that have
become void).
Fractions of shares of Preferred Stock (other than fractions that are
integral multiples of one one-thousandth (1/1000) of a share) may, at the
election of the Company, be evidenced by depositary receipts. The Company
may also issue cash in lieu of fractional shares which are not integral
multiples of one one-thousandth (1/1000) of a share.
At any time on or prior to the close of business on the tenth day
after the time that a person has become an Acquiring Person (or such later
date as a majority of the Board of Directors and a majority of the
Continuing Directors (as defined in the Rights Agreement) may determine),
the Company may redeem the Rights in whole, but not in part, at a price of
$.01 per Right ("Redemption Price"). The Rights may be redeemed after the
time that any Person has become an Acquiring Person only if approved by a
majority of the Continuing Directors. Immediately upon the effective time
of the action of the Board of Directors of the Company authorizing
redemption of the Rights, the right to
7
<PAGE>
exercise the Rights will terminate and the only right of the holders of the
Rights will be to receive the Redemption Price.
For as long as the Rights are then redeemable, the Company may, except
with respect to the redemption price or date of expiration of the Rights,
amend the Rights in any manner, including an amendment to extend the time
period in which the Rights may be redeemed. At any time when the Rights
are not then redeemable, the Company may amend the Rights in any manner
that does not materially adversely affect the interests of holders of the
Rights as such. Amendments to the Rights Agreement from and after the time
that any Person becomes an Acquiring Person requires the approval of a
majority of the Continuing Directors (as provided in the Rights Agreement).
Until a Right is exercised, the holder, as such, will have no rights
as a stockholder of the Company, including, without limitation, the right
to vote or to receive dividends.
The Rights have certain anti-takeover effects. The Rights will cause
substantial dilution to a person or group who attempts to acquire the
Company on terms not approved by the Company's Board of Directors. The
Rights should not interfere with any merger or other business combination
approved by the Board since they may be redeemed by the Company at $.01 per
Right at any time until the close of business on the tenth day (or such
later date as described above) after a person or group has obtained
beneficial ownership of 15% or more of the voting stock.
The form of Amended and Restated Rights Agreement between the Company
and Bank One Trust Company, N.A., as rights agent, specifying the terms of
the Rights, which includes as Exhibit A the form of Summary of Rights to
Purchase Series A Junior Preferred Stock, as
8
<PAGE>
Exhibit B the form of Right Certificate and as Exhibit C the form of Amended
and Restated Certificate of Designations of the Company setting forth the
terms of the Preferred Stock are attached hereto as exhibits and incorporated
herein by reference. The foregoing description of the Rights is qualified by
reference to such Exhibits.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Financial Statements of Businesses Acquired.
(1) Consolidated Financial Statements of Walibi, S.A. at
December 31, 1996 and 1997, and for each of the years in the
two-year period ended December 31, 1997.
(c) Exhibits.
4.1. Amended and Restated Rights Agreement between Premier
Parks Inc. and Bank One Trust Company, N.A., as Rights
Agent. The Rights Agreement includes as Exhibit B the
form of Right Certificate and as Exhibit C the form of
Amended and Restated Certificate of Designations.
*10.1 Stock Purchase Agreement dated as of December 15, 1997,
between the Registrant and Centrag S.A., Karaba N.V.
and Westkoi N.V.
__________________________
* Previously filed.
9
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
CONSOLIDATED FINANCIAL STATEMENTS OF WALIBI S.A.
Consolidated Balance Sheet After Distribution of Profit.............................. F-3
Consolidated Profit and Loss Account................................................. F-5
Cash Flow Statement.................................................................. F-7
Comments on the Main Items in the Balance Sheet and the Profit and Loss Account...... F-8
Notes to the Consolidated Financial Statements....................................... F-9
</TABLE>
F-1
<PAGE>
REPORT OF THE INDEPENDENT AUDITORS
To the Board of Directors of Walibi S.A.
We have audited the consolidated balance sheets of Walibi S.A. as of
December 31, 1996 and 1997 and the related consolidated statements of income and
the related cash flow statements of Walibi S.A. for each of the two years in the
period ended December 31, 1997. These consolidated financial statements are the
responsibility of the Board of Directors. Our responsibility is to express an
opinion on these consolidated financial statements based on our audit.
Our examination has been conducted in accordance with generally accepted
auditing standards in Belgium, which are substantially the same as those
followed in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the consolidated
financial statements are free of material misstatement and are in compliance
with the Belgian legal and regulatory requirements with respect to consolidated
financial statements.
In accordance with these standards we have taken into account the
administrative and accounting oganisation of the company as well as the
procedures of internal control. We have obtained all information and
explanations required for our audit. We have examined, on a test basis, the
evidence supporting the amounts included in the consolidated financial
statements. We have assessed the accounting policies used, the significant
estimates made by the company and the overall presentation of the consolidated
financial statements. We believe that our audit provides a reasonable basis for
our opinion.
In our opinion, taking into account the legal and regulatory requirements
which are applicable to them, the consolidated financial statements referred to
above present fairly, in all material respect, the consolidated financial
position of Walibi S.A. as of December 31, 1996 and 1997 and the consolidated
results of operations and cash flows of Walibi for each of the two years in the
period ended December 31, 1997.
Application of accounting principles generally accepted in the United States
would have affected shareholders' equity as of December 31, 1996 and 1997 and
share of the group in the result for each of the two years in the period ended
December 31, 1997 to the extent summarized in Note 27 to the consolidated
financial statements.
COOPERS & LYBRAND
Reviseurs d'Entreprises/Bedrijfsrevisoren BCV/SCC
represented by
Philippe Barbier
Brussels, March 17, 1998
F-2
<PAGE>
CONSOLIDATED BALANCE SHEET AFTER DISTRIBUTION OF PROFIT
(IN THOUSANDS OF BEF)
ASSETS
<TABLE>
<CAPTION>
AS OF AS OF AS OF
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C> <C>
FIXED ASSETS.......................................................... 3,449,789 3,860,482 4,179,132
I Formation expenses......................................... NOTE 1 7,559 13,770 19,278
II Intangible assets.......................................... NOTE 2 3,350 10,348 17,334
III Consolidation differences.................................. NOTE 3 34,785 45,718 56,651
IV Tangible assets............................................ NOTE 4 3,393,688 3,726,836 3,980,262
A Land and buildings...................................... 1,895,410 2,028,292 2,006,352
B Plant, machinery and equipment.......................... 1,368,427 1,570,830 1,849,194
C Furniture and vehicles.................................. 56,318 64,522 60,996
D Leasing and similar rights.............................. 223 4,315 7,602
E Other tangible assets................................... 43,586 50,321 37,400
F Assets under construction and advance
payments............................................... 29,724 8,556 18,718
V Financial assets........................................... NOTE 5 10,407 63,810 105,607
B Other companies......................................... 10,407 63,810 105,607
1. Participating interests.............................. 24,427 57,483
2. Amounts receivable................................... 10,407 39,383 48,124
CURRENT ASSETS........................................................ 954,410 780,189 951,673
VII Stocks and contracts in progress........................... 64,780 54,380 38,213
A Stocks NOTE 6 64,780 54,380 38,213
4. Goods purchased for resale.......................... 64,780 54,380 38,213
VIII Amounts receivable within one year......................... NOTE 7 210,997 107,251 123,117
A Trade debtors........................................... 45,119 45,677 35,546
B Other debtors........................................... 165,878 61,574 87,571
IX Investments................................................ NOTE 8 513,294 367,591 627,425
B Other investments and deposits.......................... 513,294 367,591 627,425
X Cash in hand and at bank................................... NOTE 8 95,430 157,469 78,957
XI Deferred charges and accrued income........................ NOTE 9 69,909 93,498 83,961
TOTAL ASSETS.......................................................... 4,404,199 4,640,671 5,130,805
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
F-3
<PAGE>
CONSOLIDATED BALANCE SHEET AFTER DISTRIBUTION OF PROFIT
(IN THOUSANDS OF BEF)
LIABILITIES
<TABLE>
<CAPTION>
AS OF AS OF AS OF
DECEMBER 31, DECEMBER 31, DECEMBER 31,
1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C> <C>
SHAREHOLDERS' EQUITY.................................................. 1,088,466 1,075,971 1,243,881
I Capital.................................................... 1,170,087 1,170,087 1,170,087
III Revaluation surpluses...................................... 14,344 15,447 16,550
IV Reserves................................................... NOTE 10 (122,312) (123,975) 53,795
V Consolidation differences.................................. 11,218 11,218 11,218
VI Translation differences.................................... NOTE 11 5,815 (7,953) (21,467)
VII Investment grants.......................................... NOTE 12 9,314 11,147 13,698
PROVISIONS AND DEFERRED TAXATION...................................... 370,207 289,657 298,009
IX A Provisions for liabilities and charges.................. 88,732 42,792 34,039
1. Pension and similar obligations...................... NOTE 13 7,680 5,780
2. Taxation............................................. 30,717
4. Other liabilities and charges........................ 50,335 37,012 34,039
B Deferred taxation....................................... NOTE 14 281,475 246,865 263,970
CREDITORS, AMOUNTS PAYABLE............................................ 2,945,526 3,275,043 3,588,915
X Amounts payable after one year............................. NOTE 15 1,873,467 2,179,169 2,455,691
A Financial debts......................................... 1,873,467 2,179,169 2,455,691
1. Subordinated loans................................... 628,285 1,029,592 1,030,518
3. Leasing or similar obligations....................... 238 328
4. Credit institutions.................................. 1,244,344 1,147,622 1,338,046
5. Other loans.......................................... 600 1,627 87,127
XI Amounts payable within one year............................ 917,726 943,959 972,592
A Current portion of amounts payable after one
year............................................... NOTE 15 302,718 275,340 261,245
B Financial debts......................................... NOTE 16 395,693 397,156 348,884
1. Credit institutions.................................. 395,693 397,156 348,884
C Trade debts............................................. 88,094 102,519 129,636
1. Suppliers............................................ 88,094 102,519 129,636
E Taxes, remuneration and social security................. 126,474 160,913 170,842
1. Taxes................................................ 45,609 85,344 88,766
2. Remuneration and social security..................... 80,865 75,569 82,076
F Other debts............................................. 4,747 8,031 61,985
XII Accrued charges and deferred income........................ NOTE 17 154,333 151,915 160,632
TOTAL LIABILITIES..................................................... 4,404,199 4,640,671 5,130,805
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
F-4
<PAGE>
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996 1995
---------- ---------- ----------
<S> <C> <C> <C> <C>
I Sales and services..................................... 2,514,600 2,523,781 2,667,529
A Turnover............................................... NOTE 18 2,488,538 2,500,874 2,644,864
C Fixed assets--own construction......................... 445
D Other operating income................................. 25,617 22,907 22,665
II Cost of sales and services............................. 2,317,670 2,501,377 2,466,185
A Raw materials, consumables and goods for resale........ 225,974 217,748 219,628
1. Purchases........................................... 234,698 232,437 214,692
2. Increase (-), decrease (+) in stocks................ (8,724) (14,689) 4,936
B Services and other goods............................... 781,889 905,890 874,452
C Remuneration, social security costs and pensions....... NOTE 19 715,030 765,457 746,825
D Depreciation
1. Depreciation of and other amounts written off....... 514,055 536,436 526,040
2. Depreciation of consolidation differences........... 10,933 10,933 10,933
E Increase (+) or decrease (-) in amounts written off 1,439 332 3,754
stocks, contracts in progress and trade debtors......
F Increase (+) or decrease (-) in provisions for 3,161 39 336
liabilities and charges..............................
G Other operating charges................................ 65,189 64,542 84,217
III OPERATING PROFIT................................................ 196,930 22,404 201,344
IV Financial income....................................... 37,049 43,985 68,769
A Income from financial fixed assets..................... 6 2,897 2,675
B Income from current assets............................. 17,341 19,819 40,609
C Other financial income................................. 19,702 21,269 25,485
V Financial charges...................................... 163,432 191,163 242,938
A Interest and other debt charges........................ NOTE 20 154,701 181,199 223,790
B Increase (+) or decrease (-) in amounts written off 155 120 264
current assets other than those under II.E.
C Other financial charges................................ 8,576 9,844 18,884
VI PROFIT (LOSS) ON ORDINARY ACTIVITIES BEFORE INCOME TAXES OF THE
CONSOLIDATED COMPANIES........................................... 70,547 (124,774) 27,175
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
F-5
<PAGE>
CONSOLIDATED PROFIT AND LOSS ACCOUNT (CONTINUED)
(IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996 1995
---------- ---------- ----------
<S> <C> <C> <C> <C>
VII Extraordinary income............................................. 74,447 12,808 20,509
A Adjustments to depreciation of and to other amounts
written off intangible and tangible fixed assets............ 491 1,652 2,043
B Adjustments to amounts written off financial fixed
assets...................................................... 551
C Adjustments to provisions for extraordinary
liabilities and charges..................................... 6,767 574 1,178
D Gains on disposal of fixed assets............................. 39,122 1,451 4,994
E Other extraordinary income.................................... NOTE 21 28,067 9,131 11,743
VIII Extraordinary charges............................................ 85,147 69,954 26,839
A Extraordinary depreciation and amounts written off
formation expenses, intangible and tangible fixed
assets...................................................... 4,077
B Amounts written off financial fixed assets.................... 6,746 33,751
C Provisions for extraordinary liabilities and charges
(Increase +, Decrease -).................................... 45,694 8,790 (8,258)
D Capital loss on disposal of fixed assets...................... 6,870 1,537 7,887
E Other extraordinary charges................................... NOTE 21 21,760 25,876 27,210
VII EXTRAORDINARY RESULTS............................................ (10,700) (57,146) (6,330)
IX PROFIT (LOSS) FOR THE PERIOD BEFORE INCOME TAXES OF THE 59,847 (181,920) 20,845
CONSOLIDATED COMPANIES...........................................
IX A Transfer from the deferred taxes............................... NOTE 22 10,837 19,731 14,640
B Provision for deferred taxes.................................. NOTE 22 (45,447) (3,857) (13,292)
X Income taxes..................................................... NOTE 22 (24,677) (12,827) (32,452)
A Taxes......................................................... (35,284) (15,057) (35,072)
B Tax adjustment and writing back of provisions for
tax........................................................... 10,607 2,230 2,620
XI PROFIT (LOSS) OF THE CONSOLIDATED COMPANIES...................... 560 (178,873) (10,259)
XIII CONSOLIDATED PROFIT (CONSOLIDATED LOSS).......................... 560 (178,873) (10,259)
XV SHARE OF THE GROUP IN THE RESULT................................. 560 (178,873) (10,259)
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
F-6
<PAGE>
CASH FLOW STATEMENT
(IN THOUSANDS BEF)
<TABLE>
<CAPTION>
NOTE 1997 1996
--------- ----------- -----------
<S> <C> <C> <C>
OPERATIONS
Group result................................................... 560 (178,873)
Depreciation on assets......................................... 517,655 536,436
Depreciation on consolidation differences...................... 10,933 10,933
Written off stocks and amounts receivable...................... 3,220 8,447
Written off financial assets................................... 26 - 1 6,746 39,490
Provisions for liabilities and charges......................... 26 - 2 46,247 8,255
Transfer of investment grants as result........................ (1,833) (2,550)
Gains and losses from sales and disposals...................... (32,252) 86
Other non cash revenue......................................... (16,717) (6,767)
Deferred taxes................................................. 34,609 (17,105)
GROSS SELF-FINANCING MARGIN.................................... 569,168 398,352
VARIATION OF REQUIREMENT FOR WORKING CAPITAL................... 26 - 3 (126,785) (76,722)
Miscellaneous.................................................. 10,047 164
OPERATING CASH FLOW............................................ 452,430 321,794
INVESTMENTS
Acquisitions of intangible fixed assets........................ (3,716) (173)
Acquisitions of tangible fixed assets.......................... (190,879) (258,855)
New loans granted and guaranty payments........................ (9,507) 0
TOTAL INVESTMENT............................................... (204,102) (259,028)
Sales and disposals of intangible fixed assets................. 0 19
Sales and disposals of tangible fixed assets................... 59,925 3,514
Sales and disposals of financial assets........................ 17,766 0
Repayment of cash guarantees................................... 38,577 2,924
TOTAL DISINVESTMENT............................................ 116,268 6,457
INVESTMENT FUNDING............................................. 26 - 4 (87,834) (252,571)
FINANCING
New loans...................................................... 26 - 5 514,000 135,300
Repayments of loans............................................ 26 - 6 (793,395) (350,576)
Dividends paid out by parent company........................... 0 19,367
Government grants.............................................. 0 (53,320)
FINANCING...................................................... (279,395) (249,229)
NET VARIATION IN CASH POSITION................................. 85,201 (180,006)
Cash position at beginning of period........................... 525,060 706,382
Cash position at end of period................................. 608,724 525,060
Translation difference on cash position........................ 1,537 1,316
Variation in cash position..................................... 85,201 (180,006)
</TABLE>
F-7
<PAGE>
COMMENTS ON THE MAIN ITEMS IN THE BALANCE SHEET
AND THE PROFIT AND LOSS ACCOUNT
INTRODUCTION
The consolidated accounts of the Walibi Group have been prepared in
accordance with the provisions of the Royal Decree of 1 September 1986, relating
to the annual accounts and the consolidated accounts of holding companies. The
Walibi Group consolidated financial statements are also in compliance with the
norms of the International Accounting Standards Committee (IASC) accounts,
provided that this was not in conflict with the Belgian accounting legislation
in force.
It should be borne in mind that the accounts of the companies included
within the scope of the consolidation are adjusted in order to make them
homogeneous and consistent with the rules of the Group and to the provisions
mentioned above.
CRITERIA USED FOR THE DETERMINATION OF THE CONSOLIDATION METHOD
All the companies of which Walibi S.A. holds sole control are subject to
full consolidation. Companies of negligible importance are excluded.
COMPANIES SUBJECT TO FULL INTEGRATION
<TABLE>
<CAPTION>
PROPORTION
NAME ACTIVITY REGISTERED OFFICE VAT REG. NO. OF CAPITAL
- ---------------------- ------------------ ----------------------------------- ---------------- ------------
<S> <C> <C> <C> <C>
Mini-Europe S.A. Mini Europe Av. du Football 1 - 1020 Brussels BE 429.551.335 99.89%
Gespark S.A. Rue J. Deschamps 9 - 1300 Wavre BE 414.127.444 99.98%
S.P.A.H. S.A Oceade Av. du Football 3 - 1020 Brussels BE 434.211.293 99.99%
Immoflor N.V. D. Martensstraat 22 - 8000 Brugge BE 425.080.328 99.99%
Bellewaerde
Park N.V. Bellewaerde Meenseweg 497 - 8902 Ieper BE 439.050.308 100.00%
Cofilo S.A.R.L. Voie Romaine - 57210 Maizieres les 99.80%
Metz (France) FR 563.839.265.32
Avenir Land S.A. Walibi Rhone-Alpes Le Grand Marais, 38630 Les 99.78%
Avenieres (France) FR 353.112.850.68
Parc Lorrain S.A. Walibi Schtroumpf Voie Romaine - 57210 Maizieres les 99.68%
Metz (France) FR 603.810.784.84
Parc Agen S.A. Walibi Aquitaine 47310 Roquefort (France) FR 903.824.445.45 99.20%
Flevo Attractiepark Walibi Flevo Postbus 40 - AA 8250 Dronten 99.89%
B.V. (Nederland) NL 994.562.3B.01
</TABLE>
Immoflor and Cofilo are holding companies, the former holding N.V.
Bellewaerde Park and the latter S.A. Avenir Land, Parc Lorrain and Parc Agen.
Gespark is a dormant company.
ASSOCIATED COMPANIES NOT INCLUDED IN THE CONSOLIDATION
<TABLE>
<CAPTION>
EQUITY IN RESULT IN
THOUSANDS OF THOUSANDS OF PROPORTION OF
NAME AND REGISTERED OFFICE VAT REG. NO. BEF 31.12.96 BEF 31.12.96 CAPITAL
- -------------------------------------- ----------------- ------------ ------------ ---------------------
<S> <C> <C> <C> <C>
Historium S.A.
Av. F. Roosevelt 164 - 1050 Brussels BE 426.079.230 (9,198) (2,900) 50.5%
</TABLE>
Historium S.A. has no business activities, and is therefore not included in
the consolidation.
F-8
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
BALANCE SHEET ACCOUNT
(1) STATEMENT OF FORMATION EXPENSES (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
AMOUNTS 1997 1996
- ----------------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
Net book value at the end of the previous period............................................... 13,770 19,278
Changes during the period:
Additions (+)................................................................................ 3,622
Depreciation (-)............................................................................. (9,833) (5,508)
Net book value at the end of the period...................................................... 7,559 13,770
Of which expenses for incorporation and increasing the capital, loan issue expenses and other
formation costs.............................................................................. 7,559 13,770
</TABLE>
This item includes the charges relating to the issue of the debenture loan.
The formation expenses are depreciated over the period of the loan.
(2) STATEMENT OF INTANGIBLE ASSETS (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
CONCESSIONS,
PATENTS,
LICENCES, ETC... GOODWILL TOTAL
---------------- ----------- ---------
<S> <C> <C> <C>
a) ACQUISITION COST
At the end of the previous period:........................................ 56,439 6,586 63,025
Changes during the period:
Acquisitions, including own work capitalised............................ 92 92
Sales and disposals..................................................... (67) (67)
Translation difference.................................................. 124 (18) 106
At the end of the period.................................................. 56,588 6,568 63,156
c) DEPRECIATION AND AMOUNTS WRITTEN OFF
At the end of the previous period:........................................ (47,406) (5,271) (52,677)
Changes during the period:
Recorded................................................................ (5,807) (1,315) (7,122)
Reversals............................................................... 64 64
Translation differences................................................. (89) 18 (71)
At the end of the period.................................................. (53,238) (6,568) (59,806)
d) NET BOOK VALUE AT THE END OF THE YEAR................................... 3,350 0 3,350
</TABLE>
The intangible assets are mainly due to the purchase of the business capital
of independent operators previously working with the Walibi Flevo and
Bellewaerde parks. They are depreciated over a period not exceeding 5 years.
F-9
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(3) STATEMENT OF POSITIVE CONSOLIDATION DIFFERENCES (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
At the end of the previous period............................................................ 45,718 56,651
Depreciation................................................................................. (10,933) (10,933)
At the end of the period..................................................................... 34,785 45,718
</TABLE>
Positive consolidation differences arise from the inclusion in the
consolidation of participation in N.V. Bellewaerde Park and S.A. Mini Europe.
The changes during the financial year are due to depreciation of 10% per year of
the initial value.
(4) STATEMENT OF TANGIBLE FIXED ASSETS (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
PLANT, LEASING ASSETS UNDER
LAND MACHINERY FURNITURE AND OTHER OTHER CONSTRUCTION
AND AND AND SIMILAR FIXED AND ADVANCE
BUILDINGS EQUIPMENT VEHICLES RIGHTS ASSETS PAYMENTS
----------- ----------- ----------- ----------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
a) ACQUISITION COST
At the end of the previous period.. 3,019,168 3,803,311 423,721 151,269 110,813 8,556
Acquisitions, including own work 28,705 112,410 12,585 11,288 25,891
capitalised.......................
Sales and disposals................ (29,081) (28,431) (3,595) (268) (20)
Transfers from one heading to 260 3,229 1,270 (4,759)
another...........................
Translation differences............ 5,984 4,585 98 369 56
At the end of the period........... 3,025,036 3,895,104 434,079 151,269 122,202 29,724
b) REVALUATION SURPLUSES
At the end of the previous period.. 16,549
At the end of the period........... 0 16,549 0 0 0 0
c) DEPRECIATION AND AMOUNTS WRITTEN (990,876) (2,249,030) (359,199) (146,954) (60,492) 0
OFF ..............................
At the end of the previous period
Depreciation and amounts written (157,078) (299,660) (21,858) (4,092) (18,012)
off recorded......................
Depreciation and amounts written 20,823 9,353 3,427 119
off reversed......................
Depreciation and amounts written (2,495) (3,889) (131) (231)
off transferred ..................
Translation differences
At the end of the period........... (1,129,626) (2,543,226) (377,761) (151,046) (78,616) 0
d) NET BOOK VALUE AT THE END OF THE 1,895,410 1,368,427 56,318 223 43,586 29,724
PERIOD............................
</TABLE>
Acquisitions include investments for the 1997 season as also the investments
for the 1998 season included in the "assets under construction" account.
F-10
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(4) STATEMENT OF TANGIBLE FIXED ASSETS (IN THOUSANDS OF BEF) (CONTINUED)
Modifications to fixed assets for the 1997 and 1996 financial years can be
summarised as follows:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Acquisitions.................................................................... 190,879 258,855
Net sales and disposals......................................................... (27,673) (3,600)
Depreciation during the financial year.......................................... (500,700) (523,772)
Translation difference.......................................................... 4,346 15,091
Net variation................................................................... (333,148) (253,426)
</TABLE>
The main acquisitions over 1997 were equally split between the biggest Parks
and are composed of improvement of the infrastructure and of purchase of leased
attractions.
(5) STATEMENT OF FINANCIAL ASSETS (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
OTHER OTHER
COMPANIES COMPANIES
1997 1996
----------- -----------
<S> <C> <C> <C>
1. PARTICIPATION AND OTHER INVESTMENTS
a) ACQUISITION COST
At the end of the previous period.................................................... 70,708 69,723
Sales and disposals................................................................ (58,669)
Translation differences............................................................ 201 985
At the end of the period............................................................. 12,240 70,708
c) AMOUNTS WRITTEN OFF
At the end of the previous period.................................................... (46,281) (12,240)
Recorded........................................................................... (6,746) (33,751)
Reversals due to sales and disposals............................................... 40,903
Translation differences............................................................ (116) (290)
At the end of the period............................................................. (12,240) (46,281)
e) NET BOOK VALUE AT THE END OF THE PERIOD.............................................. 0 24,427
2. LOANS TO OTHER COMPANIES
Value at the end of the previous period.............................................. 39,383 48,124
Additions--Acquisitions............................................................ 9,507 1,300
Repayments/disposals............................................................... (38,577) (4,224)
Translation differences............................................................ 94 488
Other changes...................................................................... 0 (6,305)
Value at the end of the period....................................................... 10,407 39,383
</TABLE>
The disposal of financial asset is related to the disposal of the
participation held in S.A.R.L. Babyland Amiland. The amount receivable after
more than one year mainly consists of deposits paid to guarantee equipment held
on a leasing basis.
F-11
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(6) STOCKS
Stocks mainly consist of goods for the "souvenir" shops.
(7) AMOUNTS RECEIVABLE WITHIN ONE YEAR
Commercial debts arise from invoicing of admission tickets and various
rentals. Other amount receivable concern amounts of VAT or withholding tax to be
received, compensation for insurance claims and prepayments that will be
refunded within year. These amounts receivable increase as a consequence of some
prepayments made for 1998 capital expenditures.
(8) SHORT-TERM INVESTMENTS, CASH IN HAND AND AT BANK
Short-term investments cash in hand and at bank are quasi-liquid. They are
increasing over 1997 as a consequence of a higher cash flow achieved during the
year, combined with lower investment expenditures.
(9) DEFERRED CHARGES AND ACCRUED INCOME
These accounts mainly consist of the invoicing of charges in 1997 which
relate to the 1998 financial year.
(10) STATEMENT OF THE RESERVES (IN THOUSANDS OF BEF)
The variation in reserves is explained in the following table (see also
introduction):
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
At the end of the previous period............................................... (123,975) 53,795
Changes:
Result for the period......................................................... 560 (178,873)
Transfers from revaluation surpluses.......................................... 1,103 1,103
At the end of the period........................................................ (122,312) (123,975)
</TABLE>
(11) TRANSLATION DIFFERENCES
The fluctuation in translation differences is explained hereafter:
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
At the end of the previous period............................................... (7,953) (21,467)
Conversion differences
on net assets of the consolidated companies................................... 1,113 4,459
on long term intragroup monetary assets and liabilities....................... 12,335 9,315
on conversion of balance sheets and profit and loss accounts.................. 320 (260)
At the end of the period........................................................ 5,815 (7,953)
</TABLE>
F-12
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(12) INVESTMENT GRANTS
The reduction in capital grants results from posting them as revenues pro
rata with depreciation on the investments concerned.
(13) PROVISIONS FOR PENSION
The provision for pensions covers the future cost of staff early
retirements.
(14) PROVISIONS FOR DIFFERED TAXES
The provision for deferred taxes takes into account the future tax debt
associated with differences in the financial and tax accounting processing. The
main difference is due to the diverse depreciation policies employed for company
accounts and consolidated accounts.
(15) STATEMENT OF DEBTS (IN THOUSANDS OF BEF)
Our debts are shown in the table below:
<TABLE>
<CAPTION>
1 TO 5
WITHIN 1 YEAR YEARS MORE THAN 5 YEARS TOTAL
------------- ----------- ----------------- ----------
<S> <C> <C> <C> <C>
A. Breakdown of debts originally due in more
than one year by their residual period
Financial debts
1. Subordinated loans................... 0 628,285 0 628,285
3. Leasing and other similar
obligations.......................... 90 238 0 328
4. Credit establishments................ 302,628 1,165,282 79,062 1,546,972
5. Other loans.......................... 600 0 600
Total as of 31.12.97.................. 302,718 1,794,405 79,062 2,176,185
Comparative figures as of 31.12.96.... 275,340 2,019,295 159,874 2,454,509
<CAPTION>
1997 1996
----------------- ----------
<S> <C> <C> <C> <C>
B. Debts for which a real guarantee has been
formed or irrevocably pledged against the
assets of the consolidated company
Financial debts
4. Credit institutions.................. 1,246,930 1,116,772
Total................................. 1,246,930 1,116,772
</TABLE>
The amount of BEF 628 million shown in the item for subordinated loans
represents the outstanding debenture loan issued in 1992 and which is due to be
repaid on 30 June 1999. A first BEF 402 million has been purchased in stock
exchange during 1997 financial year and was financed by bank loans in order to
extend the repayment period and benefit from interesting market rates.
F-13
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(15) STATEMENT OF DEBTS (IN THOUSANDS OF BEF) (CONTINUED)
Loans taken out with leading Belgian and foreign financial institutions are
repayable within an average period of 5 years. Changes during the financial year
stem from the reimbursement of amounts due, the reimbursement of a debt for an
amount of BEF 114 million and replacing it with a new loan for the same amount
and the financing of the debenture loan purchase mentioned here above.
A summary of debts (originally falling due in more than one year) are
presented by currency in the table below:
<TABLE>
<CAPTION>
FINANCIAL DEBTS (BEF THOUSANDS) ON
CURRENCY 31.12.97 COMPARATIVE FIGURES ON 31.12.96
- ------------------- ---------------------------------------- ----------------------------------------
<S> <C> <C> <C> <C>
BEF................ 1,904,502 88% 2,119,154 86%
FRF................ 31,263 1% 54,501 2%
NLG................ 240,420 11% 280,854 12%
---------- ---------- ---------- ----------
2,176,185 100% 2,454,509 100%
</TABLE>
The structure of interest rates on 31.12.97 is presented below:
<TABLE>
<CAPTION>
WEIGHTED
VARIABLE INTEREST
RATES FIXED RATES TOTAL RATES
------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Subordinated loans.................................. 628,285 628,285 6.75%
Credit institutions................................. 613,430 933,542 1,546,972 5.41%
------------- ----------- ----------
Total........................................... 613,430 1,561,827 2,175,257
TOTAL (%)....................................... 28% 72% 100%
</TABLE>
(16) AMOUNTS PAYABLE WITHIN ONE YEAR
Because of the very favourable short-term interest rates, the Group
continued to use of this form of financing in 1997.
(17) DEFERRED INCOME AND ACCRUED CHARGES
The major part of the amount under this item is due to interest charges
noted in advance and in particular, relating to the debenture loan.
PROFIT AND LOSS ACCOUNT
(18) SALES AND SERVICES (IN THOUSANDS OF BEF)
Sales and services remained stable in 1997 compared with those of 1996.
F-14
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(18) SALES AND SERVICES (IN THOUSANDS OF BEF) (CONTINUED)
As the table below shows, a fall in turnover in The Netherlands was
compensated by an increase on the French market.
<TABLE>
<CAPTION>
FLUCTUATION 1997 1996
------------ ---------- ----------
<S> <C> <C> <C>
Breakdown of net turnover by geographical market
Belgium.................................................. -0.5% 1,378,556 1,385,705
France................................................... +5.2% 791,682 752,115
The Netherlands.......................................... -12.3% 318,300 363,054
------ ---------- ----------
Total.................................................. 0.5% 2,488,538 2,500,874
</TABLE>
Consolidated turnover comes from sales of entrance tickets to the parks
(65%), catering (24%), "souvenir" shops and games (7%) and other services
provided (4%).
(19) COSTS OF SALES AND SERVICES (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Wage costs are broken down as follows:
a. Salaries and direct social benefits...................... 537,445 590,901
b. Employer's social security contributions................. 150,141 150,738
c. Other staff costs........................................ 25,504 21,857
e. Pensions................................................. 1,940 1,961
--------- ---------
Total.......................................................... 715,030 765,457
Average number of staff
Manual workers............................................... 337 344
Clerical workers............................................. 324 348
</TABLE>
(20) FINANCIAL RESULTS
The improvement in the financial results is due to the decrease in long-term
indebtedness partially refinanced by short-term debt for which rates are
currently more favourable.
F-15
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(21) EXTRAORDINARY RESULTS (IN THOUSANDS OF BEF)
Extraordinary items improved by BEF 46 million. This is mainly explained by
the increase of the extraordinary profits composed of gain on disposal of fixed
assets. These extraordinary profit compensate the allowance for provision for
risk and charges.
<TABLE>
<CAPTION>
EXTRAORDINARY INCOME 1997 1996
- ----------------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
1. Breakdown of other extraordinary income if they are large amounts
Various adjustments.......................................................................... 7,321 2,945
Compensation received........................................................................ 13,748 2,521
Other........................................................................................ 6,998 3,665
<CAPTION>
EXTRAORDINARY CHARGES 1997 1996
- ----------------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
2. Breakdown of other extraordinary charges if they are large amounts
Extraordinary write off..................................................................... 0 12,044
VAT adjustment.............................................................................. 2,741 4,409
Various adjustments......................................................................... 8,224 4,313
Severance pay............................................................................... 1,380 5,110
Extraordinary exchange differences.......................................................... 9,415 0
</TABLE>
(22) TAXATION (IN THOUSANDS OF BEF)
Tax costs for the financial year can be broken down as follows:
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Taxes on earnings
1. Taxes on earnings for the financial year
a) Taxes and deductions due or paid..................................................... (18,162) (3,760)
b) Excess payments of taxes and deductions posted as assets............................. 0 1,886
c) Estimated additional taxes........................................................... (2,360) 0
2. Taxes on earnings for previous financial years
a) Additional taxes due or paid......................................................... (14,762) (183)
b) Provisions........................................................................... 0 (13,000)
Tax adjustments.............................................................................. 10,607 2,230
Deferred taxes
1. Deductions on deferred taxes............................................................ 10,837 19,731
2. Provisions for deferred taxes........................................................... (45,447) (3,857)
Total taxes (+ earnings, - costs)............................................................ (59,287) 3,047
Including Current and deferred taxes on current earnings..................................... (55,132) 14,000
Taxes on extraordinary earnings and tax adjustments.................................. (4,155) (10,953)
</TABLE>
F-16
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(23) OFF BALANCE SHEET RIGHTS AND OBLIGATIONS (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
TO GUARANTEE THE DEBTS AND OBLIGATIONS 1997 1996
- ---------------------------------------------------------------------------------------- ---------- ----------
<S> <C> <C>
A2. Real guaranteed or irrevocable pledges against their assets by companies included in
the consolidation Mortgages:
Book value of properties mortgaged................................................ 659,397 760,469
Amount of mortgage................................................................ 1,174,630 1,486,504
Pledges against other assets........................................................ 172,776 170,000
Pledges against the business capital
Amount of the pledge................................................................ 868,490 834,422
</TABLE>
<TABLE>
<CAPTION>
OTHERS SIGNIFICANT RIGHTS AND COMMITMENTS 1997 1996
- -------------------------------------------------------------------------------------------- --------- ---------
<S> <C> <C>
Disputed taxes (Fixed quota of foreign taxes and variable loans to subsidiaries)........ 106,824 100,228
Forward currency purchases.............................................................. 0 4,795
</TABLE>
(24) FINANCIAL RELATIONSHIPS WITH GROUP COMPANIES NOT INCLUDED IN THE
CONSOLIDATION (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
1. Amount of participating interest....................................................... 0 24,427
2. Amounts receivable: within one year.................................................... 1,750 0
</TABLE>
(25) FINANCIAL RELATIONSHIPS WITH DIRECTORS AND MANAGERS (IN THOUSANDS OF BEF)
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
A. Direct and indirect remuneration and pensions paid during the period to directors and
managers................................................................................ 5,493 11,703
</TABLE>
(26) COMMENTS ON THE CONSOLIDATED CASH FLOW STATEMENT (IN THOUSANDS OF BEF)
1. Written off financial assets:
The reductions in value for 1997 concern an additional write off of the
participation in the company Babyland Amiland (BEF 34 million) before its
disposal at the end of the financial year.
2. Allowance for provisions for liabilities and charges are mainly related to
disputed taxes.
3. Variation of requirement for working capital:
The change in operating funds requirements in 1997 (BEF 127 million) is due
to the prepayments made in 1997 for 1998 capital expenditures.
4. Investments funding:
Total Group investment costs are in line with the budget approved for 1997.
5. New loans:
New loans contracted by the Group correspond to the refinancing of a portion
of the debenture loan (BEF 400 million) and of a bank loan (BEF 114
million).
6. Repayments of loans:
Debt repayments include the reimbursement of debts maturing during the year
and the reimbursement of the loans mentioned above.
F-17
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
VALUATION RULES
1. FORMATION EXPENSES
The expenses for formation and increasing the capital are depreciated 100 %
during the financial year in which they are incurred. The costs of issuing
subordinated debentures with subscription rights are being depreciated over the
7-year period of the loan.
2. INTANGIBLE ASSETS
Intangible assets are depreciated over a period not exceeding 5 years.
3. CONSOLIDATION DIFFERENCES
Consolidation differences are determined at the time of acquisition of the
participation. Positive consolidation differences, which remain after any
charging of assets and liabilities of subsidiaries, are subject to depreciation
in the consolidated profit and loss account, according to a plan decided on a
case by case basis by the Board of Directors:
<TABLE>
<CAPTION>
RATE
-----------
<S> <C>
Consolidation difference on Bellewaerde Park N.V.............................................. 10%
Consolidation difference on Gespark S.A....................................................... 20%
Consolidation difference on Mini-Europe S.A................................................... 10%
</TABLE>
The depreciation of the positive consolidation differences over a period
greater than 5 years is justified by strategic long-term effects for the Group.
4. FIXED ASSETS
Fixed assets are shown on the balance sheet at their acquisition cost. The
acquisition cost includes the accessory charges. Fixed assets are subject to
straight-line depreciation at the following annual rates (recalculation occurs
where the rules used by individual companies are different):
<TABLE>
<CAPTION>
RATE
-----------
<S> <C>
Buildings..................................................................................... 5%
New attractions:
prior to 31/12/93........................................................................... 10%
since 31/12/93.............................................................................. 6.67%
Second-hand attractions: depending on the residual life
Technical equipment........................................................................... 33.30%
Computer equipment............................................................................ 33.30%
Furniture..................................................................................... 20%
Office equipment.............................................................................. 33.0%
Vehicles...................................................................................... 25.0%
Works of art.................................................................................. 0.00%
Assets under construction..................................................................... 0.00%
</TABLE>
F-18
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
5. FINANCIAL ASSETS (OTHER COMPANIES)
These are valued at their acquisition or intake cost, after deduction of any
writing-down of their value as a result of their intrinsic value, viability or
future prospects in the company concerned. The amount receivable and cash
guarantees are recorded at their nominal value.
6. STOCKS
The goods are valued at their acquisition cost using the FIFO method.
7. AMOUNTS RECEIVABLE WITHIN ONE YEAR AND OVER ONE YEAR
These are recorded at their nominal value, and are written-down if it
becomes uncertain or doubtful that they can be recovered at the due date.
8. SHORT-TERM INVESTMENTS
Short-term deposits in Belgian francs are recorded at their nominal value.
As for investments in foreign currencies, they are valued at the exchange rate
of the last day of the financial year. Other short-term investments are recorded
at their nominal value. The value of shares is also written-down if their
inventory value is lower than their book value.
9. CASH IN HAND AND AT BANK
Cash in hand and at bank are recorded at their nominal value. If they are
expressed in foreign currency, they are then converted into Belgian francs at
the rate of the last day of the financial year.
10. DEFERRED CHARGES
Maintenance charges relating to the preparation of the next season are
carried forward to the next financial year.
11. GROUP RESERVES
The Group reserves include the legal and untaxed reserves, reserves
available and unavailable for distribution and the profit brought forward of the
various companies in the Group. They also include the consolidation results.
Translation differences on the capital and reserves of subsidiaries whose
accounts are kept in foreign currency are shown in a separate heading in the
capital and reserves.
12. INTERESTS HELD BY THIRD PARTIES
They are included in the consolidated reserves and in the Group result
because they are insignificant.
13. PROVISION FOR LIABILITIES AND CHARGES
These provisions cannot be used to correct items shown on the assets side of
the balance sheet. They cover a clearly defined, probable loss or charge.
F-19
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
14. DEFERRED TAXATION
Provision is made for latent taxation for all of the temporary differences
between the consolidated result and the fiscal result, using the liability
method that takes into account variations in future tax debts.
15. DEBTS
Debts are recorded at their nominal value on the last day of the period.
16. SPONSORSHIP CONTRACTS
Revenues from sponsorship contracts are shown in the profit and loss
accounts as linear over the duration of the contracts.
17. TRANSLATION RULES FOR ASSETS AND LIABILITIES IN FOREIGN CURRENCY
(1) Creditors, debtors, short-term investments and cash in hand and at bank in
foreign currencies are expressed on the balance sheet at the rate of the
last day of the period.
(2) The translation differences recorded on amount receivable within one year,
debts, cash in hand and at bank and short-term investments are shown in the
profit and loss account:
- in the item "Other financial income" if the differences are favourable
- in the item "Other financial charges" if the differences are unfavourable.
18. METHOD AND BASIS FOR TRANSLATION OF FINANCIAL STATEMENTS FROM FOREIGN
SUBSIDIARIES
All the assets and liabilities of subsidiaries located outside Belgium are
expressed in Belgian francs on the basis of the rate of exchange at the end of
the financial year.
The rates used in the consolidation of these accounts for 1997 and 1996 are
as follows
31.12.97: FRF 1 = BEF 6,1650 NLG 1 = BEF 18.3150
31.12.96: FRF 1 = BEF 6,1120 NLG 1 = BEF 18.3660
The profit and loss accounts of subsidiaries have been converted on the
basis of the average exchange rate for the period. The average rates used were
as follows:
31.12.97: FRF 1 = BEF 6,1330 NLG 1 = BEF 18.3310
31.12.96: FRF 1 = BEF 6,0600 NLG 1 = BEF 18.3650
The effect of exchange rate fluctuations on the net assets of the
subsidiaries and, starting from the 1994 financial year, on the long-term
intragroup monetary assets and liabilities which are in substance of the same
nature as the acquisition of a participation are shown directly in the
Translation differences(2) without affecting the consolidated result. The impact
of a discrepancy between the rate used for the translation of balance sheets and
profit and loss accounts of subsidiaries is also included in the Translation
differences(2) on the liability side of the balance sheet.
19. GOVERNMENT GRANTS
Capital grants are posted when they are granted and included in the results
at the same rhythm as the depreciation of the assets for which they were
obtained. In compliance with Belgian accounting law, they
F-20
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
are posted under a separate liability heading and must be considered as deferred
income under IAS accounting rules.
(27) SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN BELGIAN AND U.S. GENERALLY
ACCEPTED ACCOUNTING PRINICIPLES.
The consolidated financial statements of Walibi S.A. have been prepared in
accordance with generally accepted accounting principles in Belgium (Belgian
"GAAP") and are also in compliance with the norms of the International
Accounting Standards Committee (IASC) provided that this was not in conflict
with the Belgian GAAP.
The accounting priniciples differ in certain material respects from United
States generally accepted accounting principles in the United States (U.S.
GAAP).
Following is a summary of the principle differences between Belgian GAAP and
U.S. GAAP that are significant to the Company's consolidated financial
statements. The effects on the Company's net income and shareholders' equity of
applying the significant differences between Belgian GAAP and U.S. GAAP are
summarized in the tabular reconciliation set out below:
(I) DEFERRED TAXES
Belgian and International Accounting standards do not require a deferred tax
asset pertaining to temporary differences that give rise to deferred tax assets
unless there is a reasonable expectation of realization. FAS 109, Accounting for
income taxes, requires deferred taxes to be provided on a full liability basis.
A valuation allowance should be established for deferred tax assets when it is
more likely than not that some portion of all the deferred tax asset wil not be
realized.
(II) INTANGIBLE ASSETS
Belgian Accounting principles require intangible assets and cost of goodwill
at acquisition to be recognized as expense by amortizing it over a period not
exceeding 5 years. Under U.S. GAAP, separately identifiable intangible assets
are amortized over their estimated useful lives of 25 years.
(III) NEGATIVE GOODWILL AT ACQUISITION
Belgian Accounting principles require negative goodwill at acquisition to be
recorded in a separate line under Equity. Accounting Principles Board Opinion
No. 16, Business Combination, requires negative goodwill at acquisition to be
first amortized to non current assets and then to be recorded as deferred income
and amortized systematically to income over the period estimated to be
benefitted, but not in excess of 40 years.
(IV) CAPITAL GRANT
For both Belgian GAAP and U.S. GAAP, grants are recognized as income over
the periods necessary to match them with the assets to which they relate. For
Belgian GAAP, capital grants are credited directly to a separate line under
Equity whereas for U.S. GAAP, capital grants are deducted in determining the
carrying amount of the related assets.
F-21
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(27) SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN BELGIAN AND U.S. GENERALLY
ACCEPTED ACCOUNTING PRINICIPLES. (CONTINUED)
(V) REVALUATION SURPLUS
International Accounting Standards (IAS 16) and Belgian GAAP permit
property to be revalued periodically and carried at fair value subsequent to
initial recognition. Revaluation increases are credited directly to equity as
revaluation surpluses. Under U.S. GAAP, revaluation surpluses are not allowed
except in certain respects in business combinations.
(VI) RETIREMENT BENEFIT COSTS
Under Belgian GAAP, contributions to the relevant government agencies in
accordance with local requirements are expensed as incurred. Under U.S. GAAP,
pension expense is based upon a specified actuarial methodology with amounts
reflected in the income statement systematically over the working lives of the
employees covered by the plan. Other postretirement benefits are accrued over
the life of an employee's working career with the expense recognized consisting
of a number of components involving actuarial assumptions.
(VII) MAINTENANCE DEFERRALS
Preventive maintenance costs incurred after the end of the season and
related to following season are deferred. Under U.S. GAAP, the cost of
maintenance is recognized as expenses in the period incurred.
<TABLE>
<CAPTION>
RECONCILIATION OF CONSOLIDATED PROFIT AND LOSS ACCOUNTS 1996 1997
------------------------------------------------------------------------------ ------------- ------------
<C> <S> <C> <C>
SHARE OF THE GROUP IN THE RESULT AS REPORTED IN THE CONSOLIDATED STATEMENT OF
PROFIT AND LOSS IN ACCORDANCE WITH THE BELGIAN GAAP: (178,873) 560
Adjustments required for U.S. GAAP reporting purposes:
(i) Recognition of changes in deferred income tax assets on temporary differences
exisiting but not recognized under Belgian and IAS GAAP basis............... 22,538 (25,727)
(ii) Recognition of changes in amortization of intangible fixed assets............. 4,635 4,592
(iii) Recognition of negative goodwill at acquisition as deferred income............ 449 449
(v) Elimination of revaluation surplus............................................ 1,103 1,103
(vii) Maintenance costs to be expected as incurred.................................. 1,500 2,700
(viii) Recogniton of deferred tax income on (ii) and (vii) above..................... (2,464) (2,929)
Net income (loss) in accordance with U.S. GAAP................................ (151,113) (19,252)
</TABLE>
F-22
<PAGE>
WALIBI GROUP
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
AS OF DECEMBER 31, 1996 AND 1997
(ALL AMOUNTS IN THOUSANDS OF BELGIAN FRANCS, UNLESS OTHERWISE INDICATED)
(27) SUMMARY OF SIGNIFICANT DIFFERENCES BETWEEN BELGIAN AND U.S. GENERALLY
ACCEPTED ACCOUNTING PRINICIPLES. (CONTINUED)
<TABLE>
<CAPTION>
AS OF AS OF
DECEMBER 31, DECEMBER 31,
RECONCILLIATION OF SHAREHOLDERS' EQUITY 1996 1997
------------------------------------------------------------------------------ ------------- ------------
<C> <S> <C> <C>
SHAREHOLDERS' EQUITY IN ACCORDANCE WITH BELGIAN GAAP.......................... 1,075,971 1,088,466
Adjustments required for U.S. GAAP reporting purposes:
(i) Recognition of changes in deferred income tax assets on temporary differences
existing but not recognized under Belgian IAS GAAP basis.................... 146,265 120,538
(ii) Recognition of changes in amortization of intangible fixed assets............. 39,837 44,429
(iii) Recognition of negative goodwill at acquisition as deferred income............ (8,771) (8,322)
(iv) Recognition of capital grant as a deferred income............................. (11,147) (9,314)
(v) Elimination of revaluation surplus............................................ (15,447) (14,344)
(vi) Retirement Benefit costs...................................................... (15,000) (15,000)
(vii) Maintenance costs to be expensed as incurred.................................. (13,500) (10,800)
(viii) Recognition of deferred tax income on (ii) and (x) above...................... (10,580) (13,509)
SHAREHOLDERS' EQUITY IN ACCORDANCE WITH U.S. GAAP............................. 1,187,628 1,182,144
<CAPTION>
BELGIAN GAAP U.S. GAAP
STATEMENT OF CHANGES IN EQUITY BEF "000" BEF "000"
------------------------------------------------------------------------------ ------------- ------------
<C> <S> <C> <C>
SHAREHOLDERS' EQUITY AS OF DECEMBER 31, 1996.................................. 1,075,971 1,187,628
Net income for the year ending December 31, 1997.............................. 560 (19,252)
Translation difference........................................................ 13,768 13,768
Capital Grant disclosed as a separate component of equity under Belgian GAAP
and amortized to income over the assets useful life......................... (1,833) N/A
SHAREHOLDERS' EQUITY AS OF DECEMBER 31, 1997.................................. 1,088,466 1,182,144
</TABLE>
F-23
<PAGE>
The Depositary for the Exchange Offer is:
Bank Brussels Lambert SA (Capital Markets Support)
<TABLE>
<S> <C> <C>
By Mail: Facsimile Transmission: By Hand or
Avenue Marnix 24 011-322-547-36-86 Overnight Courier:
1000 Brussels-Belgium Confirm by Telephone: Avenue Marnix 24
011-322-547-23-66 1000 Brussels-Belgium
By Telex:
24444 BBF Fin B
</TABLE>
------------------------
Questions or requests for assistance may be directed to the Depositary at
its addresses and telephone numbers listed above. Additional copies of this
Prospectus/Offer to Purchase or the Acceptance Form enclosed herewith may be
obtained from the Depositary. A stockholder may also contact brokers, dealers,
commercial banks or trust companies for assistance concerning the Exchange
Offer.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Dated: March 23, 1998
By: /s/ James F. Dannhauser
----------------------------------
James F. Dannhauser
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Description
<S> <C>
4.1. Amended and Restated Rights Agreement between Premier Parks
Inc. and Bank One Trust Company, N.A., as Rights Agent. The
Rights Agreement includes as Exhibit B the form of Right
Certificate and as Exhibit C the form of Amended and Restated
Certificate of Designations.
*10.1 Stock Purchase Agreement dated as of December 15, 1997, between
the Registrant and Centrag S.A., Karaba N.V. and Westkoi N.V.
</TABLE>
- ------------------
* Previously filed.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AMENDED AND RESTATED RIGHTS AGREEMENT
by and between
PREMIER PARKS INC.
and
BANK ONE TRUST COMPANY, N.A.
as Rights Agent
---------------
Dated as of
January 12, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
TABLE OF CONTENTS
Section Page
1. Certain Definitions.................................................... 2
2. Appointment of Rights Agent............................................ 12
3. Issuance of Right Certificates......................................... 13
4. Form of Right Certificates............................................. 16
5. Countersignature and Registration...................................... 17
6. Transfer, Split Up, Combination and Exchange of Right Certificates;
Mutilated, Destroyed, Lost or Stolen Right Certificates...... 18
7. Exercise of Rights; Exercise Price; Expiration Date of Rights.......... 20
8. Cancellation and Destruction of Right Certificates..................... 25
9. Reservation and Availability of Shares of Preferred Stock.............. 26
10. Preferred Stock Record Date............................................ 29
11. Adjustment of Exercise Price or Number of Shares....................... 30
12. Certification of Adjusted Exercise Price or Number of Shares........... 39
13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power... 40
14. Fractional Rights and Fractional Shares................................ 48
15. Rights of Action....................................................... 49
16. Agreement of Right Holders............................................. 50
i
<PAGE>
Section Page
17. Right Certificate Holder Not Deemed a Stockholder..................... 51
18. Concerning the Rights Agent........................................... 52
19. Merger or Consolidation of, or Change in Name of, the Rights Agent.... 53
20. Duties of Rights Agent................................................ 55
21. Change of Rights Agent................................................ 58
22. Issuance of New Right Certificates.................................... 60
23. Redemption and Early Expiration....................................... 61
24. Notice of Proposed Actions............................................ 63
25. Notices............................................................... 65
26. Supplements and Amendments............................................ 66
27. Exchange.............................................................. 67
28. Successors............................................................ 70
29. Benefits of this Rights Agreement..................................... 70
30. Delaware Contract..................................................... 70
31. Counterparts.......................................................... 70
32. Descriptive Headings.................................................. 71
33. Severability.......................................................... 71
ii
<PAGE>
Section Page
Exhibit A -- Summary of Rights
Exhibit B -- Form of Right Certificate
Exhibit C -- Form of Amended and Restated Certificate of Designations,
Preferences and Rights of Series A Junior Preferred Stock.
iii
<PAGE>
Exhibit 4.1
AMENDED AND RESTATED RIGHTS AGREEMENT
Amended and Restated Rights Agreement, dated as of January 12, 1998,
by and between Premier Parks Inc., a Delaware corporation (the "Company"),
and Bank One Trust Company, N.A., a national banking association (the "Rights
Agent").
W I T N E S S E T H :
WHEREAS, on December 10, 1997, the Board of Directors of the Company
authorized the issuance of, and declared a dividend payable in, one right (a
"Right") for each share of Common Stock, $0.05 par value per share, of the
Company outstanding as of the close of business on January 12, 1998 (the
"Record Date"), each such Right representing the right to purchase one
one-hundredth of a share of Series A Junior Preferred Stock of the Company
("Preferred Stock") having the rights and preferences set forth in the form
of Certificate of Designations, Preferences and Rights attached hereto as
Exhibit C authorized by the Board of Directors on December 10, 1997, upon the
terms and subject to the conditions hereinafter set forth; and
WHEREAS, the Board of Directors of the Company further authorized
the issuance of one Right (subject to adjustment) with respect to each share
of Common Stock which may be issued between the Record Date and the earlier
to occur of the Distribution Date, the Expiration Date or the Final
Expiration Date (as such terms are hereinafter defined); and
<PAGE>
WHEREAS, on February 4, 1998, the Board of Directors of the Company
determined to amend the Rights to provide that each such Right will represent
the right to purchase one one-thousandth of a share of Preferred Stock and
authorized the Amended and Restated Certificate of Designations, Preferences
and Rights, attached hereto as Exhibit C; and
WHEREAS, in order to effect the amendment referred to above, the
Company and the Rights Agent have agreed to amend and restate the Rights
Agreement, effective March 23, 1998, to provide as follows:
NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:
Section 1. Certain Definitions. For purposes of this Agreement, the
following terms shall have the meanings indicated:
(a) "Acquiring Person" shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates (as such term
is hereinafter defined) and Associates (as such term is hereinafter defined)
of such Person, shall be the Beneficial Owner (as such term is hereinafter
defined) of 15% or more of the Voting Stock of the Company then outstanding;
provided, that, an Acquiring Person shall not include (i) an Exempt Person
(as such term is hereinafter defined) or (ii) any Person, together with all
Affiliates and Associates of such Person, who or which would be an Acquiring
Person solely by reason of (A) being the Beneficial Owner of shares of Voting
Stock of the Company, the Beneficial Ownership of which was acquired by such
Person pursuant to any action or transaction or series of related actions or
transactions approved by the Board of Directors before such Person otherwise
became an Acquiring Person or (B) a reduction in the number of issued and
outstanding shares
2
<PAGE>
of Voting Stock of the Company pursuant to a transaction or a series of
related transactions approved by the Board of Directors of the Company;
provided, further, that in the event such Person described in this clause
(ii) does not become an Acquiring Person by reason of subclause (A) or (B) of
this clause (ii), such Person nonetheless shall become an Acquiring Person in
the event such Person thereafter acquires Beneficial Ownership of an
additional 1% of the Voting Stock of the Company, unless the acquisition of
such additional Voting Stock would not result in such Person becoming an
Acquiring Person by reason of subclause (A) or (B) of this clause (ii).
Notwithstanding the foregoing, if the Board of Directors of the Company
determines in good faith (but only if at the time of such determination by
the Board of Directors there are then in office not less than two Continuing
Directors and such action is approved by a majority of the Continuing
Directors then in office) that a Person who would otherwise be an "Acquiring
Person" as defined pursuant to the foregoing provisions of this paragraph (a)
has become such inadvertently, and such Person divests as promptly as
practicable (as determined in good faith by the Board of Directors) a
sufficient number of shares of Common Stock so that such Person would no
longer be an "Acquiring Person" as defined pursuant to the foregoing
provisions of this paragraph (a), then such Person shall not be deemed an
"Acquiring Person" for any purposes of this Rights Agreement.
(b) "Affiliate" shall have the meaning ascribed to such term in Rule
12b-2 of the General Rules and Regulations under the Securities Exchange Act
of 1934, as amended ("Exchange Act"), as in effect on the date of this Rights
Agreement.
(c) "Associate" of a Person (as such term is hereinafter defined)
shall mean (i) with respect to a corporation, any officer or director thereof
or of any Subsidiary (as such
3
<PAGE>
term is hereinafter defined) thereof, or any Beneficial Owner (as such term
is hereinafter defined) of 10% or more of any class of equity security
thereof, (ii) with respect to an association, any officer or director thereof
or of a Subsidiary thereof, (iii) with respect to a partnership, any general
partner thereof or any limited partner thereof who is, directly or
indirectly, the Beneficial Owner of a 10% ownership interest therein, (iv)
with respect to a business trust, any officer or trustee thereof or of any
Subsidiary thereof, (v) with respect to any other trust or an estate, any
trustee, executor or similar fiduciary or any Person who has a 15% or greater
interest as a beneficiary in the income from or principal of such trust or
estate, (vi) with respect to a natural person, any relative or spouse of such
person, or any relative of such spouse, who has the same home as such person,
and (vii) any Affiliate of such Person.
(d) A person shall be deemed the "Beneficial Owner" of, or to
"Beneficially Own", any securities (and correlative terms shall have
correlative meanings):
(i) which such Person or any of such Person's
Affiliates or Associates beneficially owns, directly or indirectly, for
purposes of Section 13(d) of the Exchange Act and Regulations 13D and
13G thereunder (or any comparable or successor law or regulation), in
each case as in effect on the date hereof; or
(ii) which such Person or any of such Person's
Affiliates or Associates has (A) the right to acquire (whether such
right is exercisable immediately or only after the passage of time or
the fulfillment of a condition or both) pursuant to any agreement,
arrangement or understanding, or upon the exercise of conversion
rights, exchange rights, other rights (other than these Rights),
warrants or options, or otherwise; provided, however, that a Person
shall not be deemed the "Beneficial
4
<PAGE>
Owner" of, or to "Beneficially Own", securities tendered pursuant
to a tender or exchange offer made by such Person or any of such
Person's Affiliates or Associates until such tendered securities
are accepted for purchase or exchange or (B) the right
to vote, alone or in concert with others, pursuant to any agreement,
arrangement or understanding (whether or not in writing); provided,
however, that a Person shall not be deemed the "Beneficial Owner" of,
or to "Beneficially Own", any securities if the agreement, arrangement
or understanding to vote such security (1) arises solely from a
revocable proxy or consent given in response to a proxy or consent
solicitation made pursuant to, and in accordance with, the applicable
rules and regulations under the Exchange Act and (2) is not at the time
reportable by such Person on a Schedule 13D report under the Exchange
Act (or any comparable or successor report), other than by reference to
a proxy or consent solicitation being conducted by such Person; or
(iii) which are beneficially owned, directly or
indirectly, by any other Person with which such Person or any of such
Person's Affiliates or Associates has any agreement, arrangement or
understanding (whether or not in writing) for the purpose of acquiring,
holding, voting (except as described in clause (B) of subparagraph (ii)
of this paragraph (d)) or disposing of any securities of the Company;
provided, however, that for purposes of determining Beneficial
Ownership of securities under this Rights Agreement, officers and
directors of the Company solely by reason of their status as such shall
not constitute a group (notwithstanding that they may be Associates of
one another or may be deemed to constitute a group for purposes of
Section 13(d) the
5
<PAGE>
Exchange Act) and shall not be deemed to own shares owned by another
officer or director of the Company.
Notwithstanding anything in this paragraph (d) to the
contrary, a Person engaged in the business of underwriting
securities shall not be deemed the "Beneficial Owner" of, or to
"Beneficially Own," any securities acquired in good faith in a firm
commitment underwriting until the expiration of forty days after the
date of such acquisition.
(e) "Business Day" shall mean any day other than a Saturday, Sunday,
or a day on which banking institutions in the State of New York are
authorized or obligated by law or executive order to close.
(f) "Close of Business" on any given date shall mean 5:00 P.M.,
Oklahoma City, Oklahoma time, on such date; provided, however, that if such
date is not a Business Day it shall mean 5:00 P.M., Oklahoma City, Oklahoma
time, on the next succeeding Business Day.
(g) "Common Stock" when used with reference to the Company shall
collectively mean the Common Stock, $0.05 par value, of the Company. "Common
Stock" when used with reference to any Person other than the Company which
shall be organized in corporate form shall mean the capital stock or other
equity security with the greatest per share voting power of such Person.
"Common Stock" when used with reference to any Person other than the Company
which shall not be organized in corporate form shall mean units of beneficial
interest which shall represent the right to participate in profits, losses,
deductions
6
<PAGE>
and credits of such Person and which shall be entitled to exercise the
greatest voting power per unit of such Person.
(h) "Continuing Director" shall mean any member of the Board of
Directors, while such person is a member of the Board of Directors, who is
not an Acquiring Person, or an Affiliate or Associate of an Acquiring Person,
or a representative or nominee of an Acquiring Person or of any such
Affiliate or Associate, and who either (i) was a member of the Board of
Directors prior to the time that any Person became an Acquiring Person (ii)
subsequently became a member of the Board of Directors, and whose nomination
for election or election to the Board of Directors was recommended or
approved by a majority of the Continuing Directors then on the Board of
Directors.
(i) "Distribution Date" shall have the meaning set forth in Section
3(b) hereof.
(j) "Exchange Act" shall have the meaning set forth in Section 1(b)
hereof.
(k) "Exempt Person" shall mean (i) the Company, (ii) any Subsidiary
of the Company or (iii) any employee benefit plan or employee stock plan of
the Company or any Subsidiary of the Company, or any trust or other entity
organized, appointed, established or holding Common Stock for or pursuant to
the terms of any such plan.
(l) "Exercise Price" shall have the meaning set forth in Sections 4
and 7(b) hereof.
(m) "Expiration Date" shall have the meaning set forth in Section
7(a) hereof.
(n) "Fair Market Value" of any property shall mean the fair market
value of such property as determined in accordance with Section 11(b) hereof.
7
<PAGE>
(o) "Final Expiration Date" shall have the meaning set forth in
Section 7(a) hereof.
(p) "Person" shall mean any individual, firm, corporation or other
entity.
(q) "Principal Party" shall have the meaning set forth in Section
13(b) hereof.
(r) "Redemption Price" shall have the meaning set forth in Section
23(a) hereof.
(s) "Right Certificate" shall have the meaning set forth in Section
3(d) hereof.
(t) "Stock Acquisition Date" shall mean the first date on which
there shall be a public announcement by the Company or an Acquiring Person
that an Acquiring Person has become such (which, for purposes of this
definition, shall include, without limitation, a report filed pursuant to
Section 13(d) of the Exchange Act) or such earlier date as a majority of the
Continuing Directors shall become aware of the existence of an Acquiring
Person.
(u) "Subsidiary" of a Person shall mean any corporation or other
entity of which securities or other ownership interests having voting power
sufficient to elect a majority of the board of directors or other persons
performing similar functions are beneficially owned, directly or indirectly,
by such Person or by any corporation or other entity that is otherwise
controlled by such Person.
(v) "Summary of Rights" shall have the meaning set forth in Section
3(a) hereof.
(w) "Trading Day" shall have the meaning set forth in Section 11(b)
hereof.
(x) "Transfer Tax" shall mean any tax or charge, including any
documentary stamp tax, imposed or collected by any governmental or regulatory
authority in respect of any
8
<PAGE>
transfer of any security, instrument or right, including Rights, shares of
Common Stock and shares of Preferred Stock.
(y) "Voting Stock" shall mean (i) the Common Stock of the Company
and (ii) any other shares of capital stock of the Company entitled to vote
generally in the election of directors or entitled to vote together with the
Common Stock in respect of any merger, consolidation, sale of all or
substantially all of the Company's assets, liquidation, dissolution or
winding up. For purposes of this Agreement, a stated percentage of the Voting
Stock shall mean a number of shares of the Voting Stock as shall equal in
voting power that stated percentage of the total voting power of the then
outstanding shares of Voting Stock in the election of a majority of the Board
of Directors or in respect of any merger, consolidation, sale of all or
substantially all of the Company's assets, liquidation, dissolution or
winding up.
Any determination required to be made by the Board of Directors of
the Company for purposes of applying the definitions contained in this
Section 1 shall be made by the Board of Directors in its good faith judgment,
which determination shall be binding on the Rights Agent and the holders of
the Rights.
Section 2. Appointment of Rights Agent. The Company hereby appoints
the Rights Agent to act as agent for the Company and the holders of the
Rights in accordance with the terms and conditions hereof, and the Rights
Agent hereby accepts such appointment. The Company may from time to time
appoint such Co-Rights Agents as it may deem necessary or desirable.
9
<PAGE>
Section 3. Issuance of Right Certificates.
(a) On the Record Date (or as soon as practicable thereafter), the
Company or the Rights Agent shall send a copy of a Summary of Rights, in
substantially the form attached hereto as Exhibit A (the "Summary of
Rights"), by first class mail, postage prepaid, to each record holder of the
Common Stock as of the close of business on the Record Date, at the address
of such holder shown on the records of the Company.
(b) Until the close of business on the day which is the earlier of
(i) the tenth day after the Stock Acquisition Date or (ii) the tenth business
day (or such later date as may be determined by action of the Board of
Directors prior to such time as any Person becomes an Acquiring Person) after
the date of the commencement by any Person (other than an Exempt Person) of,
or the first public announcement of the intent of any Person (other than an
Exempt Person) to commence, a tender or exchange offer upon the successful
consummation of which such Person, together with its Affiliates and
Associates, would be the Beneficial Owner of 15% or more of the then
outstanding shares of Voting Stock of the Company (irrespective of whether
any shares are actually purchased pursuant to any such offer) (the earlier of
such dates being herein referred to as the "Distribution Date"), (x) the
Rights shall be evidenced by the certificates for Common Stock registered in
the name of the holders of Common Stock (together with, in the case of
certificates for Common Stock outstanding as of the Record Date, the Summary
of Rights) and not by separate Right certificates and the record holders of
such certificates for Common Stock shall be the record holders of the Rights
represented thereby and (y) each Right shall be transferable only
simultaneously and together with the transfer of a share of Common Stock
(subject to adjustment as hereinafter provided).
10
<PAGE>
Until the Distribution Date (or, if earlier, the Expiration Date or Final
Expiration Date), the surrender for transfer of any certificate for Common
Stock shall constitute the surrender for transfer of the Right or Rights
associated with the Common Stock evidenced thereby, whether or not
accompanied by a copy of the Summary of Rights.
(c) Rights shall be issued in respect of all shares of Common Stock
that become outstanding after the Record Date but prior to the earlier of the
Distribution Date, the Expiration Date or the Final Expiration Date and, in
certain circumstances provided in Section 22 hereof, may be issued in respect
of shares of Common Stock that become outstanding after the Distribution
Date. Certificates for Common Stock (including, without limitation,
certificates issued upon original issuance, disposition from the Company's
treasury or transfer or exchange of Common Stock) after the Record Date but
prior to the earliest of the Distribution Date, the Expiration Date, or the
Final Expiration Date (or, in certain circumstances as provided in Section 22
hereof, after the Distribution Date) shall have impressed, printed, written
or stamped thereon or otherwise affixed thereto the following legend:
This certificate also evidences and entitles the holder hereof
to the same number of Rights (subject to adjustment) as the number of
shares of Common Stock represented by this certificate, such Rights
being on the terms provided under the Rights Agreement between Premier
Parks Inc. and Bank One Trust Company, N.A., (the "Rights Agent"),
dated as of January 12, 1998, as it may be amended from time to time
(the "Rights Agreement"), the terms of which are incorporated herein by
reference and a copy of which is on file at the principal executive
offices of Premier Parks Inc. Under certain circumstances, as set forth
in the Rights Agreement, such Rights shall be evidenced by separate
certificates and shall no longer be evidenced by this certificate.
Premier Parks Inc. shall mail to the registered holder of this
certificate a copy of the Rights Agreement without charge within five
days after receipt of a written request therefor. Under certain
circumstances as provided in Section 7(e) of the Rights Agreement,
Rights issued to or Beneficially Owned by Acquiring Persons or
11
<PAGE>
their Affiliates or Associates (as such terms are defined in the
Rights Agreement) or any subsequent holder of such Rights shall be
null and void and may not be transferred to any Person.
(d) As soon as practicable after the Distribution Date, the Company
will prepare and execute, the Rights Agent will countersign, and the Company
will send or cause to be sent (and the Rights Agent will, if requested,
send), by first class mail, postage prepaid, to each record holder of the
Common Stock as of the close of business on the Distribution Date, as shown
by the records of the Company, at the address of such holder shown on such
records, a certificate in the form provided by Section 4 hereof (a "Right
Certificate"), evidencing one Right (subject to adjustment as provided
herein) for each share of Common Stock so held. As of and after the
Distribution Date, the Rights shall be evidenced solely by Right Certificates
and may be transferred by the transfer of the Right Certificate as permitted
hereby, separately and apart from any transfer of one or more shares of
Common Stock.
Section 4. Form of Right Certificates. The Right Certificates (and
the forms of election to purchase shares, certificate and assignment to be
printed on the reverse thereof), when, as and if issued, shall be
substantially in the form set forth in Exhibit B hereto and may have such
marks of identification or designation and such legends, summaries or
endorsements printed thereon as may be required to comply with any law or
with any rule or regulation made pursuant thereto or with any rule or
regulation of any stock exchange on which the Common Stock or the Rights may
from time to time be listed or as the Company may deem appropriate to conform
to usage or otherwise and as are not inconsistent with the provisions of this
Rights Agreement. Subject to the provisions of Section 22 hereof, Right
Certificates evidencing Rights whenever issued, (i) shall be dated as of the
date of issuance of the Rights
12
<PAGE>
they represent and (ii) subject to adjustment from time to time as provided
herein, on their face shall entitle the holders thereof to purchase such
number of shares (including fractional shares which are integral multiples of
one-thousandth of a share) of Preferred Stock as shall be set forth therein
at the price payable upon exercise of a Right provided by Section 7(b) hereof
as the same may from time to time be adjusted as provided herein (the
"Exercise Price").
Section 5. Countersignature and Registration.
(a) Each Right Certificate shall be executed on behalf of the
Company by its Chairman of the Board, President or any Vice President, either
manually or by facsimile signature, and have affixed thereto the Company's
seal or a facsimile thereof which shall be attested by the Secretary or an
Assistant Secretary of the Company, either manually or by facsimile
signature. Each Right Certificate shall be countersigned by the Rights Agent
either manually or by facsimile signature and shall not be valid for any
purpose unless so countersigned. In case any officer of the Company who shall
have signed any Right Certificate shall cease to be such officer of the
Company before countersignature by the Rights Agent and issuance and delivery
of the certificate by the Company, such Right Certificate, nevertheless, may
be countersigned by the Rights Agent and issued and delivered with the same
force and effect as though the person who signed such Right Certificates had
not ceased to be such officer of the Company. Any Right Certificate may be
signed on behalf of the Company by any person who, on the date of the
execution of such Right Certificate, shall be a proper officer of the Company
to sign such Right Certificate, although at the date of the execution of this
Rights Agreement any such person was not such an officer.
13
<PAGE>
(b) Following the Distribution Date, the Rights Agent will keep or
cause to be kept, at its principal office or one or more offices designated
as the appropriate place for surrender of Right Certificates upon exercise or
transfer, and in such other locations as may be required by law, books for
registration and transfer of the Right Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the
Right Certificates, the number of Rights evidenced on its face by each of the
Right Certificates and the date of each of the Right Certificates.
Section 6. Transfer, Split Up, Combination and Exchange of Right
Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates.
(a) Subject to the provisions of Section 7(e), 7(f) and 14 hereof,
at any time after the Close of Business on the Distribution Date, and at or
prior to the Close of Business on the earlier of the Expiration Date or the
Final Expiration Date, any Right Certificate, may be (i) transferred or (ii)
split up, combined or exchanged for one or more other Right Certificates,
entitling the registered holder to purchase a like number of shares of
Preferred Stock as the Right Certificate or Rights Certificates surrendered
then entitled such holder to purchase. Any registered holder desiring to
transfer any Right Certificate shall surrender the Right Certificate at the
office of the Rights Agent designated for the surrender of Right Certificates
with the form of certificate and assignment on the reverse side thereof duly
endorsed (or enclosed with such Right Certificate a written instrument of
transfer in form satisfactory to the Company and the Rights Agent), duly
executed by the registered holder thereof or his attorney duly authorized in
writing, and with such signature duly guaranteed. Any registered holder
desiring to split up, combine or exchange any Right Certificate shall
14
<PAGE>
make such request in writing delivered to the Rights Agent, and shall
surrender the Right Certificate to be split up, combined or exchanged at the
office of the Rights Agent designated therefor. Thereupon, the Rights Agent
shall countersign and deliver to the person entitled thereto a Right
Certificate or Right Certificates, as the case may be, as so requested. The
Company may require payment of a sum sufficient to cover any Transfer Tax
that may be imposed in connection with any transfer, split up, combination or
exchange of any Right Certificates.
(b) Subject to the provisions of Section 7(e), 7(f) and 14 hereof,
upon receipt by the Company and the Rights Agent of evidence reasonably
satisfactory to them of the loss, theft, destruction or mutilation of a Right
Certificate, and, in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to them and, if requested by the Company,
reimbursement to the Company and the Rights Agent of all reasonable expenses
incidental thereto, or upon surrender to the Rights Agent and cancellation of
the Right Certificate if mutilated, the Company shall issue and deliver a new
Right Certificate of like tenor to the Rights Agent for delivery to the
registered owner in lieu of the Right Certificate so lost, stolen, destroyed
or mutilated.
Section 7. Exercise of Rights; Exercise Price; Expiration Date of
Rights.
(a) The Rights shall not be exercisable until, and shall become
exercisable on, the Distribution Date (unless otherwise provided herein,
including, without limitation, the restrictions on exercisability set forth
in Section 7(e) and 23(a) hereof). Except as otherwise provided herein, the
Rights may be exercised, in whole or in part, at any time commencing with the
Distribution Date upon surrender of the Right Certificate, with the form of
election
15
<PAGE>
to purchase and certificate on the reverse side thereof duly executed (with
signatures duly guaranteed), to the Rights Agent at the principal office of
the Rights Agent in Oklahoma City, Oklahoma, together with payment of the
Exercise Price for each Right exercised, subject to adjustment as hereinafter
provided, at or prior to the Close of Business on the earlier of (i) January
12, 2008 (the "Final Expiration Date"), (ii) the date on which the Rights
are redeemed as provided in Section 23 hereof or (iii) the date on which the
Rights expire as provided in Section 23(d) hereof (such earlier date being
herein referred to as the "Expiration Date").
(b) The Exercise Price shall initially be $250.00 for each one
one-thousandth (1/1000) of a share of Preferred Stock issued pursuant to the
exercise of a Right. The Exercise Price and the number of shares of Preferred
Stock or other securities to be acquired upon exercise of a Right shall be
subject to adjustment from time to time as provided in Sections 11 and 13
hereof. The Exercise Price shall be payable in lawful money of the United
States of America, in accordance with paragraph (c) below.
(c) Except as otherwise provided herein, upon receipt of a Right
Certificate representing exercisable Rights with the form of election to
purchase duly executed, accompanied by payment by certified check, cashier's
check, bank draft or money order payable to the Company or the Rights Agent
of the Exercise Price for the shares to be purchased and an amount equal to
any applicable Transfer Tax required to be paid by the holder of the Right
Certificate in accordance with Section 9(e) hereof, the Rights Agent shall
thereupon promptly (i) requisition from any transfer agent of the Preferred
Stock of the Company one or more certificates representing the number of
shares of Preferred Stock to be so purchased, and the Company hereby
authorizes and directs such transfer agent to comply
16
<PAGE>
with all such requests, (ii) as provided in Section 14(b), at the election of
the Company, cause depositary receipts to be issued in lieu of fractional
shares of Preferred Stock, (iii) if the election provided for in the
immediately preceding clause (ii) has not been made, requisition from the
Company the amount of cash to be paid in lieu of the issuance of fractional
shares in accordance with Section 14(b) hereof, (iv) after receipt of such
Preferred Stock certificates and, if applicable, depositary receipts, cause
the same to be delivered to or upon the order of the registered holder of
such Right Certificate, registered in such name or names as may be designated
by such holder and (v) when appropriate, after receipt, promptly deliver such
cash to or upon the order of the registered holder of such Right Certificate;
provided, however, that in the case of a purchase of securities, other than
Preferred Stock, pursuant to Section 13 hereof, the Rights Agent shall
promptly take the appropriate actions corresponding in such case to that
referred to in the foregoing clauses (i) through (v) of this Section 7(c).
Notwithstanding the foregoing provisions of this Section 7(c), the Company
may suspend the issuance of shares of Preferred Stock upon exercise of a
Right for a reasonable period, not in excess of 90 days, during which the
Company seeks to register under the Securities Act of 1933, as amended (the
"Act"), and any applicable securities law of any other jurisdiction, the
shares of Preferred Stock to be issued pursuant to the Rights; provided,
however, that nothing contained in this Section 7(c) shall relieve the
Company of its obligations under Section 9(c) hereof.
(d) In case the registered holder of any Right Certificate shall
exercise less than all the Rights evidenced thereby, a new Right Certificate
evidencing Rights equivalent to
17
<PAGE>
the Rights remaining unexercised shall be issued by the Rights Agent to the
registered holder of such Right Certificate or his assign, subject to the
provisions of Section 14(b) hereof.
(e) Notwithstanding any provision of this Rights Agreement to the
contrary, from and after the time (the "invalidation time") when any Person
first becomes an Acquiring Person, any Rights that are beneficially owned by
(x) such Acquiring Person (or any Associate or Affiliate of such Acquiring
Person), (y) a transferee of such Acquiring Person (or any such Associate or
Affiliate) who becomes a transferee after the invalidation time or (z) a
transferee of such Acquiring Person (or any such Associate or Affiliate) who
becomes a transferee prior to or concurrently with the invalidation time
pursuant to either (I) a transfer from the Acquiring Person to holders of its
equity securities or to any Person with whom it has any continuing agreement,
arrangement or understanding regarding the transferred Rights or (II) a
transfer which the Board of Directors has determined is part of a plan,
arrangement or understanding which has the purpose or effect of avoiding the
provisions of this Section 7(e), and subsequent transferees of such Persons
referred to in clause (y) and (z) above, shall be void without any further
action and any holder of such Rights shall thereafter have no rights
whatsoever with respect to such Rights under any provision of this Rights
Agreement. The Company shall use all reasonable efforts to ensure that the
provisions of this Section 7(e) are complied with, but shall have no
liability to any holder of Right Certificates or any other Person as a result
of its failure to make any determination with respect to an Acquiring Person
or its Affiliates, Associates or transferees hereunder. No Right Certificate
shall be issued pursuant to Section 3 hereof that represents Rights
beneficially owned by an Acquiring Person whose Rights would be void pursuant
to the provisions of this Section 7(e) or any Associate or
18
<PAGE>
Affiliate thereof; no Right Certificate shall be issued at any time upon the
transfer of any Rights to an Acquiring Person whose Rights would be void
pursuant to the provisions of this Section 7(e) or any Associate or Affiliate
thereof or to any nominee of such Acquiring Person, Associate or Affiliate;
and any Right Certificate delivered to the Rights Agent for transfer to an
Acquiring Person whose Rights would be void pursuant to the provisions of
this Section 7(e) shall be cancelled.
(f) Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder upon the occurrence of any
purported exercise as set forth in this Section 7 unless such registered
holder shall have (i) completed and signed the certificate following the form
of election to purchase set forth on the reverse side of the Right
Certificate surrendered for such exercise and (ii) provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner)
or Affiliates or Associates thereof as the Company shall reasonably request.
Section 8. Cancellation and Destruction of Right Certificates. All
Right Certificates surrendered for the purpose of exercise, transfer, split
up, combination or exchange shall, if surrendered to the Company or to any of
its agents, be delivered to the Rights Agent for cancellation or in cancelled
form, or, if surrendered to the Rights Agent, shall be cancelled by it, and
no Right Certificates shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Rights Agreement. The Company
shall deliver to the Rights Agent for cancellation and retirement, and the
Rights Agent shall cancel and retire, any Right Certificate purchased or
acquired by the Company otherwise than upon the exercise thereof.
19
<PAGE>
The Rights Agent shall deliver all cancelled Right Certificates to the
Company, or shall, at the written request of the Company, destroy such
cancelled Right Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.
Section 9. Reservation and Availability of Shares of Preferred
Stock.
(a) The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued shares of
Preferred Stock or out of authorized and issued shares of Preferred Stock
held in its treasury, such number of shares of Preferred Stock as will from
time to time be sufficient to permit the exercise in full of all outstanding
Rights.
(b) The Company shall use its best efforts to cause, from and after
such time as the Rights become exercisable, all shares of Preferred Stock
issued or reserved for issuance in accordance with this Rights Agreement to
be listed, upon official notice of issuance, upon the principal national
securities exchange, if any, upon which the Common Stock is listed or, if the
principal market for the Common Stock is not on any national securities
exchange, to be eligible for quotation in the National Association of
Securities Dealers' Automated Quotation System or any successor thereto or
other comparable quotation system.
(c) The Company covenants and agrees that it will take all such
action as may be necessary to ensure that all shares of Preferred Stock
delivered upon exercise of Rights shall, at the time of delivery of the
certificates for such shares (subject to payment of the Exercise Price in
respect thereof), be duly and validly authorized and issued and fully paid
and nonassessable shares.
20
<PAGE>
(d) The Company shall use its best efforts to (i) file, as soon as
practicable following the occurrence of the event described in Section
11(a)(ii), or as soon as is required by law following the Distribution Date,
as the case may be, a registration statement under the Act, with respect to
the shares of Preferred Stock purchasable upon exercise of the Rights on an
appropriate form, (ii) cause such registration statement to become effective
as soon as practicable after such filing, and (iii) cause such registration
statement to remain effective (with a prospectus at all times meeting the
requirements of the Act) until the earlier of (A) the date as of which the
Rights are no longer exercisable for Preferred Stock, and (b) the date of the
expiration of the Rights. The Company may temporarily suspend, for a period
of time not to exceed ninety days, the issuance of shares of Preferred Stock
upon exercise of a Right in order to prepare and file a registration
statement under the Act and permit it to become effective. The Company will
also take such action as may be appropriate under, or to ensure compliance
with, the securities or "blue sky" laws of the various states in connection
with the exercisability of the Rights. Notwithstanding any provision of this
Agreement to the contrary, the Rights shall not be exercisable in any
jurisdiction unless the requisite qualification in such jurisdiction shall
have been obtained and until a registration statement under the Act (if
required) shall have been declared effective.
(e) The Company covenants and agrees that it will pay when due and
payable any and all federal and state Transfer Taxes which may be payable in
respect of the issuance or delivery of the Right Certificates or of any
shares of Preferred Stock issued or delivered upon the exercise of Rights.
The Company shall not, however, be required to pay any Transfer Tax which may
be payable in respect of any transfer or delivery of a Right Certificate to a
Person
21
<PAGE>
other than, or the issuance or delivery of certificates for Preferred
Stock upon exercise of Rights in a name other than that of, the registered
holder of the Right Certificate, and the Company shall not be required to
issue or deliver a Right Certificate or certificate for Preferred Stock to a
Person other than such registered holder until any such Transfer Tax shall
have been paid (any such Transfer Tax being payable by the holder of such
Right Certificate at the time of surrender) or until it has been established
to the Company's satisfaction that no such Transfer Tax is due.
Section 10. Preferred Stock Record Date. Each Person in whose name
any certificate for shares of Preferred Stock is issued upon the exercise of
Rights shall for all purposes be deemed to have become the holder of record
of the Preferred Stock represented thereby on, and such certificate shall be
dated as of, the date upon which the Right Certificate evidencing such Rights
was duly surrendered and payment of the Exercise Price (and any applicable
Transfer Taxes) was made; provided, however, that, if the date of such
surrender and payment is a date upon which the Preferred Stock transfer books
of the Company are closed, such Person shall be deemed to have become the
record holder of such shares on, and such certificate shall be dated as of,
the next succeeding Business Day on which the Preferred Stock transfer books
of the Company are open. Prior to the exercise of the Rights evidenced
thereby, the holder of a Right Certificate, as such, shall not be entitled to
any rights of a stockholder of the Company with respect to shares for which
the Rights shall be exercisable, including, without limitation, the right to
vote, to receive dividends or other distributions or to exercise any
preemptive rights, and shall not be entitled to receive any notice of any
proceedings of the Company, except as provided herein.
22
<PAGE>
Section 11. Adjustment of Exercise Price or Number of Shares. The
Exercise Price and the number of shares of Preferred Stock which may be
purchased upon exercise of a Right are subject to adjustment from time to
time as provided in this Section 11.
(a)(i) In the event the Company shall at any time
after the date of this Rights Agreement (A) declare or pay any
dividend on Common Stock payable in shares of Common Stock, (B)
subdivide or split the outstanding shares of Common Stock into a
greater number of shares or (C) combine or consolidate the
outstanding shares of Common Stock into a smaller number of shares
or effect a reverse split of the outstanding shares of Common Stock,
then and in each such event the number of shares of Preferred Stock
issuable upon the exercise of a Right after the record date for such
event (if one shall have been established or, if not, after the date
of such event) shall be the number of shares of Preferred Stock
issuable immediately prior to such event multiplied by a fraction
the numerator of which is the number of Rights outstanding
immediately prior to such event and the denominator of which is the
number of Rights outstanding immediately after such event and the
Exercise Price after such event shall be the Exercise Price in
effect immediately prior to such event multiplied by such fraction.
If an event occurs which would require an adjustment under both this
Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment
provided for in this Section 11(a)(i) shall be in addition to, and
shall be made prior to, any adjustment required pursuant to Section
11(a)(ii).
(ii) Subject to Section 27 of this Agreement, in the
event that any Person (other than an Exempt Person), alone or
together with its Affiliates and Associates,
23
<PAGE>
shall become an Acquiring Person, then, subject to the last sentence
of Section 23(a) and except as otherwise provided in this Section
11, each holder of a Right, except as provided in Section 7(e)
hereof, shall thereafter have the right to receive upon exercise of
such Right in accordance with the terms of this Rights Agreement and
payment of the Exercise Price, the greater of (1) the number of one
one-thousandths of a share of Preferred Stock for which such Right
was exercisable immediately prior to the first occurrence of the
event described in this Section 11(a)(ii) or (2) such number of one
one-thousandths of a share of Preferred Stock, based on the per
share Fair Market Value of the Preferred Stock (determined pursuant
to Section 11(b) hereof) on the date of such first occurrence,
having a value equal to twice the Exercise Price; provided, however,
that if the transaction that would otherwise give rise to the
foregoing adjustment is also subject to the provisions of Section 13
hereof, then only the provisions of Section 13 hereof shall apply
and no adjustment shall be made pursuant to this Section 11(a)(ii).
(iii) In the event that the Company does not have
available sufficient authorized but unissued Preferred Stock to
permit the adjustments required pursuant to the foregoing
subparagraph (i) or the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii), the Company shall take all
such action as may be necessary to authorize and reserve for
issuance such number of additional shares of Preferred Stock as may
from time to time be required to be issued upon the exercise in full
of all Rights from time to time outstanding and, if necessary, shall
use its best efforts to obtain stockholder approval thereof. In lieu
of issuing shares of Preferred
24
<PAGE>
Stock in accordance with the foregoing subparagraphs (i) and (ii),
the Company may, if the Board of Directors determines (but only if
at the time of such determination by the Board of Directors there
are then in office not less than two Continuing Directors and such
action is approved by a majority of the Continuing Directors then in
office) that such action is necessary or appropriate and not
contrary to the interests of holders of Rights, elect to issue or
pay, upon the exercise of the Rights, cash, property, shares of
Preferred or Common Stock, or any combination thereof, having an
aggregate Fair Market Value equal to the Fair Market Value of the
shares of Preferred Stock which otherwise would have been issuable
pursuant to Section 11(a)(ii), which Fair Market Value shall be
determined by an investment banking firm selected by the Board of
Directors (but only if at the time of such selection there are then
in office not less than two Continuing Directors and such selection
is approved by a majority of the Continuing Directors then in
office). For purposes of the preceding sentence, the Fair Market
Value of the Preferred Stock shall be as determined pursuant to
Section 11(b). Subject to Section 23 hereof, any such election by
the Board of Directors of the Company must be made and publicly
announced within thirty (30) days after the date on which the event
described in Section 11(a)(ii) occurs.
(b) For the purpose of this Rights Agreement, the "Fair Market
Value" of any share of Preferred Stock, Common Stock or any other stock or
any Right or other security or any other property on any date shall be
determined as provided in this Section 11(b). In the case of a
publicly-traded stock or other security, the Fair Market Value on any date
shall be deemed to be the average of the daily closing prices per share of
such stock or per unit of such
25
<PAGE>
other security for the 30 consecutive Trading Days (as such term is
hereinafter defined) immediately prior to such date; provided, however, that
in the event that the Fair Market Value per share of any share of Common
Stock is determined during a period which includes any date that is within 30
Trading Days after (i) the ex-dividend date for a dividend or distribution on
such stock payable in shares of Common Stock or securities convertible into
shares of Common Stock, or (ii) the effective date of any subdivision, split,
combination, consolidation, reverse stock split or reclassification of such
stock, then, and in each such case, the Fair Market Value shall be
appropriately adjusted by the Board of Directors of the Company to take into
account ex-dividend or post-effective date trading. The closing price for any
day shall be the last sale price, regular way, or, in case no such sale takes
place on such day, the average of the closing bid and asked prices, regular
way (in either case, as reported in the applicable transaction reporting
system with respect to securities listed or admitted to trading on the New
York Stock Exchange), or, if the securities are not listed or admitted to
trading on the New York Stock Exchange, as reported in the applicable
transaction reporting system with respect to securities listed on the
principal national securities exchange on which such security is listed or
admitted to trading; or, if not listed or admitted to trading on any national
securities exchange, the last quoted price (or, if not so quoted, the average
of the high bid and low asked prices) in the over-the-counter market, as
reported by the National Association of Securities Dealers, Inc. Automated
Quotation System ("NASDAQ") or such other system then in use; or, if no bids
for such security are quoted by any such organization, the average of the
closing bid and asked prices as furnished by a professional market maker
making a market in such security selected by the Board of Directors of the
Company. The
26
<PAGE>
term "Trading Day" shall mean a day on which the principal national
securities exchange on which such security is listed or admitted to trading
is open for the transaction of business or, if such security is not listed or
admitted to trading on any national securities exchange, a Business Day. If a
security is not publicly held or not so listed or traded, "Fair Market Value"
shall mean the fair value per share of stock or per other unit of such other
security, as determined by an independent investment banking firm experienced
in the valuation of securities selected in good faith by the Board of
Directors of the Company, or, if no such investment banking firm is, in the
good faith judgment of the Board of Directors, available to make such
determination, in good faith by the Board of Directors of the Company;
provided, however, that for purposes of making the adjustment provided for by
Section 11(a)(ii) hereof, the Fair Market Value of a share of Preferred Stock
shall not be less than 100% of the product of the Fair Market Value of a
share of Common Stock multiplied by the higher of the then Dividend Multiple
or Vote Multiple applicable to the Preferred Stock (as defined in the
Certificate of Designations relating to the Preferred Stock) and shall not
exceed 105% of the product of the then Fair Market Value of a share of Common
Stock multiplied by the higher of the then Dividend Multiple or Vote Multiple
applicable to the Preferred Stock. In the case of property other than
securities, the "Fair Market Value" thereof shall be determined in good faith
by the Board of Directors of the Company based upon such appraisals or
valuation reports of such independent experts as the Board of Directors of
the Company shall in good faith determine to be appropriate in accordance
with good business practices and the interests of the holders of Rights. Any
such determination of Fair Market Value shall be described in a statement
filed with the Rights Agent and shall be binding upon the Rights Agent.
27
<PAGE>
(c) All calculations under this Section 11 shall be made to the
nearest cent or to the nearest one one-hundredth of a share, as the case may
be.
(d) Irrespective of any adjustment or change in the Exercise Price
or the number of shares of Preferred Stock issuable upon the exercise of the
Rights, the Right Certificates theretofore and thereafter issued may continue
to express the Exercise Price and the number of shares to be issued upon
exercise of the Rights as in the initial Right Certificates issued hereunder
but, nevertheless, shall represent the Rights as so adjusted.
(e) Before taking any action that would cause an adjustment reducing
the purchase price per whole share of Preferred Stock upon exercise of the
Rights below the then par value, if any, of the shares of Preferred Stock,
the Company shall use its best efforts to take any corporate action which
may, in the opinion of its counsel, be necessary in order that the Company
may validly and legally issue fully paid and non-assessable shares of such
Preferred Stock at such adjusted purchase price per share.
(f) Anything in this Section 11 to the contrary notwithstanding, in
the event of any reclassification of stock of the Company or any
recapitalization, reorganization or partial liquidation of the Company or
similar transaction, the Company shall be entitled to make such further
adjustments in the number of shares of Preferred Stock which may be acquired
upon exercise of the Rights, and such adjustments in the Exercise Price
therefor, in addition to those adjustments expressly required by the other
paragraphs of this Section 11, as the Board of Directors of the Company shall
determine to be necessary or appropriate in order for the holders of the
Rights in such event to be treated equitably and in accordance with the
purpose and intent of this Rights Agreement or in order that any such event
shall
28
<PAGE>
not, but for such adjustment, in the opinion of counsel to the Company,
result in the stockholders of the Company being subject to any United States
federal income tax liability by reason thereof.
(g) In the event the Company shall at any time after the Record Date
make any distribution on the shares of Common Stock of the Company, whether
by way of a dividend or a reclassification of stock, a recapitalization,
reorganization or partial liquidation of the Company or otherwise, in cash or
any debt security, debt instrument, real or personal property or any other
property (other than any shares of Common Stock or other capital stock of the
Company and other than any right or warrant to acquire any such shares,
including any debt security convertible into or exchangeable for any such
share, at less than the Fair Market Value of such shares) and the amount of
such cash dividend or the Fair Market Value of such debt security, debt
instrument or property exceeds 150% of the aggregate amount of the cash
dividends declared or paid on the Common Stock of the Company in the 15-month
period immediately preceding such distribution, then and in each such event,
unless such distribution is part of or is made in connection with a
transaction to which Section 11(a)(ii) or Section 13 hereof applies, the
Exercise Price shall be reduced by an amount equal to the cash or the Fair
Market Value of such distribution, as the case may be, per share of Common
Stock of the Company. For purposes hereof, the Fair Market Value of any
property distributed to the holders of shares of Common Stock of the Company
shall be the Fair Market Value of such property as determined by an
independent investment banking firm experienced in the valuation of
securities or the other property so distributed, as the case may be, selected
in good faith by the Board of Directors of the Company, or, if no such
29
<PAGE>
investment banking firm is in the good faith judgment of the Board of
Directors available to make such determination, in good faith by the Board of
Directors of the Company, whose determination shall be final and binding on
the Company, the Rights Agent and the holders of Rights.
Section 12. Certification of Adjusted Exercise Price or Number of
Shares. Whenever an adjustment is made as provided in Section 11, 13 or
23(c), the Company shall (a) promptly prepare a certificate setting forth
such adjustment, and a brief statement of the facts giving rise to such
adjustment, (b) promptly file with the Rights Agent and with each transfer
agent for the Preferred Stock a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Right Certificate in accordance with
Section 25. Notwithstanding the foregoing sentence, the failure of the
Company to make such certification or give such notice shall not affect the
validity of or the force or effect of the requirement for such adjustment.
Any adjustment to be made pursuant to Section 11, 13 or 23(c) of this Rights
Agreement shall be effective as of the date of the event giving rise to such
adjustment. The Rights Agent shall be fully protected in relying on any such
certificate and on any adjustment therein contained and shall not be deemed
to have knowledge of any adjustment unless and until it shall have received
such certificate.
Section 13. Consolidation, Merger or Sale or Transfer of Assets or
Earning Power.
(a) In the event that, at any time after the time that any Person
becomes an Acquiring Person, (x) the Company shall, directly or indirectly,
consolidate with, or merge with and into, any other Person or Persons (other
than an Exempt Person) and the Company shall not be the surviving or
continuing corporation of such consolidation or merger, or (y)
30
<PAGE>
any Person or Persons (other than an Exempt Person) shall, directly or
indirectly, consolidate with, or merge with and into, the Company, and the
Company shall be the continuing or surviving corporation of such
consolidation or merger and, in connection with such consolidation or merger,
all or part of the outstanding shares of Common Stock shall be changed into
or exchanged for stock or other securities of any other Person (other than an
Exempt Person) or of the Company or cash or any other property, or (z) the
Company or one or more of its Subsidiaries shall, directly or indirectly,
sell or otherwise transfer to any other Person or any Affiliate or Associate
of such Person, in one or more transactions, or the Company or one or more of
its Subsidiaries shall sell or otherwise transfer to any Persons in one or a
series of related transactions, assets or earning power aggregating more than
50% of the assets or earning power of the Company and its Subsidiaries (taken
as a whole), then, on the first occurrence of any such event, proper
provision shall be made so that (i) each holder of record of a Right, except
as provided in Section 7(e) hereof, shall thereafter have the right to
receive, upon the exercise thereof and payment of the Exercise Price in
accordance with the terms of this Rights Agreement, such number of shares of
validly issued, fully paid, non-assessable and freely tradeable Common Stock
of the Principal Party (as defined herein), not subject to any liens,
encumbrances, rights of first refusal or other adverse claims, as shall,
based on the Fair Market Value of the Common Stock of the Principal Party on
the date of the Consummation of such consolidation, merger, sale or transfer,
equal twice the Exercise Price; (ii) such Principal Party shall thereafter be
liable for, and shall assume, by virtue of such consolidation, merger, sale
or transfer, all the obligations and duties of the Company pursuant to this
Rights Agreement; (iii) the term "Company" for all purposes of this Rights
Agreement
31
<PAGE>
shall thereafter be deemed to refer to such Principal Party; (iv) such
Principal Party shall take such steps (including, but not limited to, the
reservation of a sufficient number of shares of its Common Stock in
accordance with the provisions of Section 9 hereof applicable to the
reservation of Preferred Stock) in connection with such consummation as may
be necessary to assure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to its shares of
Common Stock thereafter deliverable upon the exercise of the Rights;
provided, however, that, upon the subsequent occurrence of any merger,
consolidation, sale of all or substantially all of the assets,
recapitalization, reclassification of shares, reorganization or other
extraordinary transaction in respect of such Principal Party, each holder of
a Right shall thereupon be entitled to receive, upon exercise of a Right and
payment of the Exercise Price, such cash, shares, rights, warrants and other
property which such holder would have been entitled to receive had it, at the
time of such transaction, owned the shares of Common Stock of the Principal
Party purchasable upon the exercise of a Right, and such Principal Party
shall take such steps (including, but not limited to, reservation of shares
of stock) as may be necessary to permit the subsequent exercise of the Rights
in accordance with the terms hereof for such cash, shares, rights, warrants
and other property and (v) the provisions of Section 11(a)(ii) hereof shall
be of no effect following the occurrence of any event described in clause
(x), (y) or (z) above of this Section 13(a).
(b) "Principal Party" shall mean in the case of any transaction
described in (x) or (y) of the first sentence of Section 13(a) hereof: (A)
the Person that is the issuer of the securities into which shares of Common
Stock of the Company are changed or otherwise exchanged or converted in such
merger or consolidation, or, if there is more than one such
32
<PAGE>
issuer, the issuer of the Common Stock of which has the greatest market value
or (B) if no securities are so issued, (x) the Person that is the other party
to the merger or consolidation and that survives such merger or
consolidation, or, if there is more than one such Person, the Person the
Common Stock of which has the greatest market value or (y) if the Person that
is the other party to the merger or consolidation does not survive the merger
or consolidation, the Person that does survive the merger or consolidation
(including the Company if it survives); and
(i) in the case of any transaction described in (z)
of the first sentence in Section 13(a), the Person that is the party
receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions, or, if
each Person that is a party to such transaction or transactions
receives the same portion of the assets or earning power so
transferred or if the Person receiving the greatest portion of the
assets or earning power cannot be determined, whichever of such
Persons as is the issuer of Common Stock having the greatest market
value of shares outstanding; provided, however, that in any such
case, if the Common Stock of such Person is not at such time and has
not been continuously over the preceding 12-month period registered
under Section 12 of the Exchange Act, and such Person is a direct or
indirect Subsidiary of another Person the Common Stock of which is
and has been so registered, the term "Principal Party" shall refer
to such other Person, or if such Person is a Subsidiary, directly or
indirectly, of more than one Person, the Common Stocks of all of
which are and have been so registered, the term "Principal Party"
shall
33
<PAGE>
refer to whichever of such Persons is the issuer of the Common
Stock having the greatest market value of shares outstanding.
(c) The Company shall not consummate any consolidation, merger or
sale or transfer of assets or earning power referred to in Section 13(a)
unless the Principal Party shall have a sufficient number of authorized
shares of its Common Stock that have not been issued or reserved for issuance
to permit exercise in full of all Rights in accordance with this Section 13
and unless prior thereto the Company and the Principal Party involved therein
shall have executed and delivered to the Rights Agent an agreement confirming
that the Principal Party shall, upon consummation of such consolidation,
merger or sale or transfer of assets or earning power, assume this Rights
Agreement in accordance with Section 13(a) hereof and that all rights of
first refusal or preemptive rights in respect of the issuance of shares of
Common Stock of the Principal Party upon exercise of outstanding Rights have
been waived and that such transaction shall not result in a default by the
Principal Party under this Rights Agreement, and further providing that, as
soon as practicable after the date of any consolidation, merger or sale or
transfer of assets or earning power referred to in Section 13(a) hereof, the
Principal Party will:
(i) prepare and file a registration statement under
the Act with respect to the Rights and the securities purchasable
upon exercise of the Rights on an appropriate form, use its best
efforts to cause such registration statement to become effective as
soon as practicable after such filing and use its best efforts to
cause such registration statement to remain effective (with a
prospectus at all times meeting the
34
<PAGE>
requirements of the Act) until the date of expiration of the Rights,
and similarly comply with applicable state securities laws;
(ii) use its best efforts to list (or continue the
listing of) the Rights and the securities purchasable upon exercise
of the Rights on a national securities exchange or to meet the
eligibility requirements for quotation on NASDAQ; and
(iii) deliver to holders of the Rights historical
financial statements for the Principal Party which comply in all
respects with the requirements for registration on Form 10 (or any
successor form) under the Exchange Act. In the event that any of the
transactions described in Section 13(a) hereof shall occur at any
time after the occurrence of a transaction described in Section
11(a)(ii) hereof, the Rights which have not theretofore been
exercised shall, subject to the provisions of Section 7(e) hereof,
thereafter be exercisable in the manner described in Section 13(a).
(d) In case the Principal Party which is to be a party to a
transaction referred to in this Section 13 has a provision in any of its
authorized securities or in its Certificate of Incorporation or By-laws or
other instrument governing its corporate affairs, which provision would have
the effect of (i) causing such Principal Party to issue, in connection with,
or as a consequence of, the consummation of a transaction referred to in this
Section 13, shares of Common Stock of such Principal Party at less than the
then Fair Market Value per share (determined pursuant to Section 11(b)
hereof) or securities exercisable for, or convertible into, Common Stock of
such Principal Party at less than such then Fair Market Value (other than to
holders of Rights pursuant to this Section 13) or (ii) providing for any
special tax or similar payment in connection with the issuance to any holder
of a Right of Common Stock of such
35
<PAGE>
Principal Party pursuant to the provisions of this Section 13, then, in such
event, the Company shall not consummate any such transaction unless prior
thereto the Company and such Principal Party shall have executed and
delivered to the Rights Agent a supplemental agreement providing that the
provision in question of such Principal Party shall have been canceled,
waived or amended, or that the authorized securities shall be redeemed, so
that the applicable provision will have no effect in connection with, or as a
consequence of, the consummation of the proposed transaction.
Section 14. Fractional Rights and Fractional Shares.
(a) The Company shall not be required to issue fractions of Rights
or to distribute Right Certificates which evidence fractional Rights (i.e.,
Rights to acquire less than one one-thousandth of a share of Preferred
Stock), unless such fractional Rights result from a transaction referred to
in Section 11(a)(i) hereof. If the Company shall determine not to issue such
fractional Rights, then, in lieu of such fractional Rights, there shall be
paid to the holders of record of the Right Certificates with regard to which
such fractional Rights would otherwise be issuable, an amount in cash equal
to the same fraction of the Fair Market Value of a whole Right.
(b) The Company shall not be required to issue fractions of shares
of Preferred Stock (other than fractions which are integral multiples of
one-thousandth of a share) upon exercise of the Rights or to distribute
certificates which evidence fractional shares (other than fractions which are
integral multiples of one-thousandth of a share). In lieu of issuing
fractions of shares of Preferred Stock, the Company may, at its election,
issue depositary receipts evidencing fractions of shares pursuant to an
appropriate agreement
36
<PAGE>
between the Company and a depositary selected by it; provided that such
agreement shall provide that the holders of such depositary receipts shall
have all of the rights, privileges and preferences to which they would be
entitled as owners of the Preferred Stock. With respect to fractional shares
that are not integral multiples of one-thousandth of a share, if the Company
does not issue such fractional shares or depositary receipts in lieu thereof,
there shall be paid to the holders of record of Right Certificates at the
time such Right Certificates are exercised as herein provided an amount in
cash equal to the same fraction of the Fair Market Value of a share of
Preferred Stock.
(c) The holder of a Right by the acceptance of a Right expressly
waives his right to receive any fractional Right or any fractional shares of
Preferred Stock (other than fractions which are integral multiples of one
one-thousandth of a share) upon exercise of a Right.
Section 15. Rights of Action. All rights of action in respect of
this Rights Agreement, except the rights of action given to the Rights Agent
in Section 18 hereof, are vested in the respective registered holders of the
Right Certificates (and, prior to the Distribution Date, the holders of
record of the Common Stock); and any holder of record of any Right
Certificate (or, prior to the Distribution Date, of the Common Stock),
without the consent of the Rights Agent or of the holder of any other Right
Certificate (or, prior to the Distribution Date, of the Common Stock), may,
in his own behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company to enforce, or
otherwise act in respect of, his right to exercise the Rights evidenced by
such Right Certificate in the manner provided in such Right Certificate and
in this Rights Agreement. Without
37
<PAGE>
limiting the foregoing or any remedies available to the holders of Rights, it
is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Rights Agreement and will be
entitled to specific performance of the obligations under, and injunctive
relief against actual or threatened violations of, the obligations of any
Person subject to this Rights Agreement.
Section 16. Agreement of Right Holders. Each holder of a Right, by
accepting the same, consents and agrees with the Company and the Rights Agent
and with every other holder of a Right that:
(a) prior to the Distribution Date, the Rights shall be evidenced by
the certificates for Common Stock registered in the name of the holders of
Common Stock (together, as applicable, with the Summary of Rights), which
certificates for Common Stock shall also constitute certificates for Rights,
and not by separate Right Certificates, and each Right shall be transferable
only simultaneously and together with the transfer of shares of Common Stock;
(b) after the Distribution Date, the Right Certificates are
transferable only on the registry books of the Rights Agent if surrendered at
the office of the Rights Agent designated for such purpose, duly endorsed or
accompanied by a proper instrument of transfer; and
(c) the Company and the Rights Agent may deem and treat the person
in whose name the Right Certificate (or, prior to the Distribution Date, the
associated Common Stock certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Right Certificates or
38
<PAGE>
the associated Common Stock certificate made by anyone other than the Company
or the Rights Agent) for all purposes whatsoever, and neither the Company nor
the Rights Agent shall be affected by any notice to the contrary.
Section 17. Right Certificate Holder Not Deemed a Stockholder. No
holder, as such, of any Right Certificate shall be entitled to vote, receive
dividends or be deemed for any purpose the holder of Preferred Stock or any
other securities which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained herein or in any
Right Certificate be construed to confer upon the holder of any Right
Certificate, as such, any of the rights of a stockholder of the Company or
any right to vote for the election of directors or upon any matter submitted
to stockholders at any meeting thereof (except as provided in Section 7(f)
hereof), or to give or withhold consent to any corporate action (except as
provided in Section 7(f) hereof), or to receive notice of meetings or other
actions affecting stockholders (except as provided in Section 24 hereof), or
to receive dividends or subscription rights, or otherwise, until the Right or
Rights evidenced by such Right Certificate shall have been exercised in
accordance with the provisions hereof.
Section 18. Concerning the Rights Agent.
(a) The Company agrees to pay to the Rights Agent reasonable
compensation for all services rendered by it hereunder and, from time to
time, on demand of the Rights Agent, its reasonable expenses and counsel fees
and other disbursements incurred in the administration and execution of this
Rights Agreement and the exercise and performance of its duties hereunder.
The Company also agrees to indemnify the Rights Agent for, and to hold it
harmless against, any loss, liability, or expense, incurred without
negligence, bad faith or
39
<PAGE>
willful misconduct on the part of the Rights Agent, for anything done or
omitted to be done by the Rights Agent in connection with the acceptance and
administration of this Rights Agreement, including the cost and expenses of
defending against any claim of liability relating to the Rights or this
Rights Agreement.
(b) The Rights Agent shall be protected against, and shall incur no
liability for or in respect of, any action taken, suffered or omitted by it
in connection with its administration of this Rights Agreement in reliance
upon any Right Certificate or certificate for Preferred Stock or for other
securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent,
certificate, statement or other paper or document believed by it to be
genuine and to be signed, executed and, where necessary, verified or
acknowledged, by the proper person or persons.
Section 19. Merger or Consolidation of, or Change in Name of, the
Rights Agent.
(a) Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be consolidated, or any
corporation resulting from any merger or consolidation to which the Rights
Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust or stock transfer business of the Rights
Agent or any successor Rights Agent, shall be the successor to the Rights
Agent under this Rights Agreement without the execution or filing of any
paper or any further act on the part of any of the parties hereto; provided
that such corporation would be eligible for appointment as a successor Rights
Agent under the provisions of Section 21 hereof. In case at the time such
successor Rights Agent shall succeed to the agency created by this Rights
Agreement any of the Rights Certificates shall have been countersigned but
not delivered, any
40
<PAGE>
such successor Rights Agent may adopt the countersignature of the predecessor
Rights Agent and deliver such Right Certificates so countersigned; and in
case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right
Certificates either in the name of the predecessor Rights Agent or in the
name of the successor Rights Agent; and in all such cases such Right
Certificates shall have the full force provided in the Right Certificates and
in this Rights Agreement.
(b) In case at any time the name of the Rights Agent shall be
changed and at such time any of the Right Certificates shall have been
countersigned but not delivered, the Rights Agent may adopt the
countersignature under its prior name and deliver Right Certificates so
countersigned; in case at that time any of the Right Certificates shall not
have been countersigned, the Rights Agent may countersign such Right
Certificates either in its prior name or in its changed name; in all such
cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Rights Agreement.
Section 20. Duties of Rights Agent. The Rights Agent undertakes the
duties and obligations imposed by this Rights Agreement upon the following
terms and conditions, by all of which the Company and the holders of Right
Certificates by their acceptance thereof shall be bound:
(a) The Rights Agent may consult with legal counsel (who may be
legal counsel for the Company), and the opinion of such counsel shall be full
and complete authorization and protection to the Rights Agent as to any
action taken or omitted by it in good faith and in accordance with such
opinion.
41
<PAGE>
b) Whenever in the performance of its duties under this Rights
Agreement the Rights Agent shall deem it necessary or desirable that any fact
or matter be proved or established by the Company prior to taking or
suffering any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by the Chairman
of the Board, the President or any Vice President and by the Treasurer or the
Secretary of the Company and delivered to the Rights Agent. Any such
certificate shall be full authorization to the Rights Agent for any action
taken or suffered in good faith by it under the provisions of this Rights
Agreement in reliance upon such certificate.
(c) The Rights Agent shall be liable hereunder only for its own
negligence, bad faith or willful misconduct.
(d) The Rights Agent shall not be liable for or by reason of any of
the statements of fact or recitals contained in this Rights Agreement or in
the Right Certificates (except its countersignature thereof) or be required
to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.
(e) The Rights Agent shall not be under any responsibility in
respect of the validity of this Rights Agreement or the execution and
delivery hereof (except the due execution hereof by the Rights Agent) or in
respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the
Company of any covenant or condition contained in this Rights Agreement or in
any Right Certificate; nor shall it be responsible for any adjustment
required under the provisions of Section 11 or 13 hereof or responsible for
the manner, method or amount of any such
42
<PAGE>
adjustment or the ascertaining of the existence of facts that would require
any such adjustment (except with respect to the exercise of Rights evidenced
by Right Certificates after receipt of a certificate describing any such
adjustment); nor shall it by any act hereunder be deemed to make any
representation or warranty as to the authorization or reservation of any
shares of Preferred Stock to be issued pursuant to this Rights Agreement or
any Right Certificate or as to whether any shares of Preferred Stock will,
when issued, be validly authorized and issued, fully paid and nonassessable.
(f) The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered
all such further and other acts, instruments and assurances as may reasonably
be required by the Rights Agent for the carrying out or performing by the
Rights Agent of the provisions of the Rights Agreement.
(g) The Rights Agent is hereby authorized and directed to accept
instructions with respect to the performance of its duties hereunder from the
Chairman of the Board, the President or any Vice President or the Secretary
or the Treasurer of the Company, and to apply to such officers for advice or
instructions in connection with its duties, and it shall not be liable for
any action taken or suffered to be taken by it in good faith in accordance
with instructions of any such officer.
(h) The Rights Agent and any shareholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and
43
<PAGE>
freely as though it were not the Rights Agent under this Rights Agreement.
Nothing herein shall preclude the Rights Agent from acting in any other
capacity for the Company or for any other legal entity.
(i) The Rights Agent may execute and exercise any of the rights or
powers hereby vested in it or perform any duty hereunder either itself or by
or through its attorneys or agents, and the Rights Agent shall not be
answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any
such act, default, neglect or misconduct, provided reasonable care was
exercised in the selection and continued employment thereof.
Section 21. Change of Rights Agent. The Rights Agent or any successor
Rights Agent may resign and be discharged from its duties under this Rights
Agreement upon 30 days' notice in writing mailed to the Company and to each
transfer agent of the Common Stock and the Preferred Stock by registered or
certified mail. The Company may remove the Rights Agent or any successor Rights
Agent (with or without cause) upon 30 days' notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer
agent of the Common Stock and the Preferred Stock by registered or certified
mail. If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent.
Notwithstanding the foregoing provisions of this Section 21, in no event shall
the resignation or removal of a Rights Agent be effective until a successor
Rights Agent shall have been appointed and have accepted such appointment. If
the Company shall fail to make such appointment within a period of 30 days after
such removal or after it has been notified in writing of such resignation or
incapacity by
44
<PAGE>
the resigning or incapacitated Rights Agent or by the holder of a Right
Certificate (who shall, with such notice, submit his Right Certificate for
inspection by the Company), then the incumbent Rights Agent or the holder of
record of any Right Certificate may apply to any court of competent
jurisdiction for the appointment of a new Rights Agent. Any successor Rights
Agent, whether appointed by the Company or by such a court, shall be (a) a
corporation organized and doing business under the laws of the United States
or of any state thereof, in good standing, which is authorized under such
laws to exercise corporate trust or stock transfer powers and is subject to
supervision or examination in the conduct of its corporate trust or stock
transfer business by federal or state authorities and which has at the time
of its appointment as Rights Agent a combined capital and surplus of at least
$5,000,000 or (b) an Affiliate controlled by a corporation described in
clause (a) of this sentence. After appointment, the successor Rights Agent
shall be vested with the same powers, rights, duties and responsibilities as
if it had been originally named as Rights Agent without further act or deed,
but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and
deliver any further assurance, conveyance, act or deed necessary for the
purpose. Not later than the effective date of any such appointment, the
Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock and Preferred Stock, and
mail a notice thereof in writing to the registered holders of the Right
Certificates. Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of
the resignation or removal of the Rights Agent or the appointment of the
successor Rights Agent, as the case may be. Notwithstanding the foregoing
provisions, in
45
<PAGE>
the event of resignation, removal or incapacity of the Rights Agent, the
Company shall have the authority to act as the Rights Agent until a successor
Rights Agent shall have assumed the duties of the Rights Agent hereunder.
Section 22. Issuance of New Right Certificates. Notwithstanding any of
the provisions of this Rights Agreement or of the Rights to the contrary, the
Company may, at its option, issue new Right Certificates evidencing Rights in
such form as may be approved by its Board of Directors to reflect any adjustment
or change in the Exercise Price per share and the number or kind or class of
shares of stock or other securities or property purchasable under the Right
Certificates made in accordance with the provisions of this Rights Agreement.
Section 23. Redemption and Early Expiration.
(a) The Company may, at its option, but only by the vote of a
majority of the Board of Directors, redeem all but not less than all of the
then outstanding Rights, at any time prior to the Close of Business on the
earlier of (i) the tenth day following the Stock Acquisition Date (subject to
extension by the Company as provided in Section 26 hereof) or (ii) the Final
Expiration Date, at a redemption price of $.01 per Right, subject to
adjustments as provided in subsection (c) below (the "Redemption Price");
provided, however, that from and after the time that any Person shall become
an Acquiring Person, the Company may redeem the Rights only if at the time of
the action of the Board of Directors there are then in office not less than
two Continuing Directors and such redemption is approved by a majority of the
Continuing Directors then in office. Notwithstanding anything contained in
this Agreement to the contrary, the Rights shall not be exercisable pursuant
to Section 11(a)(ii) prior to the expiration of the Company's right of
redemption hereunder.
46
<PAGE>
(b) Without any further action and without any notice, the right to
exercise the Rights will terminate effective at the time so designated by
action of the Board of Directors ordering the redemption of the Rights and
the only right thereafter of the holders of Rights shall be to receive the
Redemption Price. Within 10 days after the effective time of the action of
the Board of Directors ordering the redemption of the Rights, the Company
shall give notice of such redemption to the holders of the then outstanding
Rights by mailing such notice to all such holders at their last addresses as
they appear upon the registry books of the Rights Agent or, prior to the
Distribution Date, on the registry books of the transfer agent for the Common
Stock. Any notice which is mailed in the manner herein provided shall be
deemed given, whether or not the holder receives the notice. Each notice of
redemption will state the method by which the payment of the Redemption Price
will be made. At the option of the Board of Directors, the Redemption Price
may be paid in cash to each Rights holder or by the issuance of shares (and,
at the Company's election pursuant to Section 14(b) hereof, cash or
depositary receipts in lieu of fractions of shares other than fractions which
are integral multiples of one one-thousandth (1/1000) of a share) of
Preferred Stock or Common Stock having a Fair Market Value equal to such cash
payment.
(c) In the event the Company shall at any time after the date of
this Rights Agreement (A) pay any dividend on Common Stock in shares of
Common Stock, (B) subdivide or split the outstanding shares of Common Stock
into a greater number of shares or (C) combine or consolidate the outstanding
shares of Common Stock into a smaller number of shares or effect a reverse
split of the outstanding shares of Common Stock, then, and in each such
event, the Redemption Price shall be appropriately adjusted to reflect the
foregoing.
(d) If not earlier redeemed pursuant to Section 23 hereof or
exercised pursuant to Section 7 hereof, the Rights shall expire immediately
prior to the effective time of any merger to be consummated by the Company
pursuant to Section 251(g) of the Delaware General Corporation Law, provided
that the Company shall have caused any subsidiary which shall succeed to the
business of the Company pursuant to such merger to enter into a Rights
Agreement substantially identical in form and substance to the terms
contained herein.
47
<PAGE>
Section 24. Notice of Proposed Actions.
(a) In case the Company, after the Distribution Date, shall propose
(i) to effect any of the transactions referred to in Section 11(a)(i) or
11(g) or (ii) to offer to the holders of record of its Common Stock options,
warrants, or other rights to subscribe for or to purchase shares of Common
Stock (including any security convertible into or exchangeable for Common
Stock) or shares of stock of any class or any other securities, options,
warrants, convertible or exchangeable securities or other rights, or (iii) to
effect any reclassification of its Preferred Stock or Common Stock or any
recapitalization or reorganization of the Company, or (iv) to effect any
consolidation or merger with or into, or to effect any sale or other transfer
(or to permit one or more of its Subsidiaries to effect any sale or other
transfer), in one or more transactions, of more than 50% of the assets or
earning power of the Company and its Subsidiaries (taken as a whole) to, any
other Person or Persons, or (v) to effect the liquidation, dissolution or
winding up of the Company, then, in each such case, the Company shall give to
each holder of record of a Right Certificate, in accordance with Section 25,
notice of such proposed action, which shall specify the record date for the
purposes of such transaction referred to in Section 11(a)(i) or such dividend
or distribution, or the date on which such reclassification,
recapitalization, reorganization, consolidation, merger, sale or transfer of
assets, liquidation, dissolution, or winding up is to take place and the
record date for determining participation therein by the holders of record of
Common Stock or Preferred Stock, if any such date is to be fixed, and such
notice shall be so given in the case of any action covered by clause (i) or
(ii) above at least 10 days prior to the record date for determining holders
of record of the Preferred Stock for purposes of such action, and in the case
of any
48
<PAGE>
such other action, at least 10 days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of record
of Common Stock or Preferred Stock, whichever shall be the earlier. The
failure to give notice required by this Section 24 or any defect therein
shall not affect the legality or validity of the action taken by the Company
or the vote upon any such action.
(b) In case any of the transactions referred to in Section 11(a)(i),
11(g) or 13 of this Rights Agreement are proposed, then, in any such case,
the Company shall give to each holder of Rights, in accordance with Section
25 hereof, notice of the proposal of such transaction at least 10 days prior
to consummating such transaction, which notice shall specify the proposed
event and the consequences of the event to holders of Rights under Section
11(a)(i), 11(g) or 13 hereof, as the case may be, and, upon consummating such
transaction, shall similarly give notice thereof to each holder of Rights.
Section 25. Notices. Notices or demands authorized by this Rights
Agreement to be given or made by the Rights Agent or by the holder of record
of any Right Certificate or Right to or on the Company shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed (until
another address is filed in writing with the Rights Agent) as follows:
Premier Parks Inc.
11501 Northeast Expressway
Oklahoma City, Oklahoma 73131
Subject to the provisions of Section 21, any notice or demand authorized by
this Rights Agreement to be given or made by the Company or by the holder of
record of any Right Certificate or Right to or on the Rights Agent shall be
sufficiently given or made if sent by
49
<PAGE>
first-class mail, postage prepaid, addressed (until another address is filed
in writing with the Company) as follows:
Bank One Trust Company, N.A.
P.O. Box 25848
Oklahoma City, Oklahoma 73125
Notices or demands authorized by this Rights Agreement to be given or made by
the Company or the Rights Agent to the holder of record of any Right Certificate
or Right shall be sufficiently given or made if sent by first-class mail,
postage prepaid, addressed to such holder at the address of such holder as shown
on the registry books of the Company.
Section 26. Supplements and Amendments. For as long as the Rights
are then redeemable and except as provided in the last sentence of this
Section 26, the Company may in its sole and absolute discretion, and the
Rights Agent shall if the Company so directs, supplement or amend any
provision of this Agreement without the approval of any holders of the
Rights. At any time when the Rights are not then redeemable and except as
provided in the last sentence of this Section 26, the Company may, and the
Rights Agent shall if the Company so directs, supplement or amend this Rights
Agreement without the approval of any holders of Right Certificates (i) to
cure any ambiguity, (ii) to correct or supplement any provision contained
herein which may be defective or inconsistent with any other provisions
herein or (iii) to change or supplement the provisions hereunder in any
manner which the Company may deem necessary or desirable; provided that no
such supplement or amendment pursuant to this clause (iii) shall materially
adversely affect the interest of the holders of Right Certificates. Upon the
delivery of a certificate from an appropriate officer of the Company which
states that the proposed supplement or amendment is in compliance with the
terms of
50
<PAGE>
this Section 26, the Rights Agent shall execute such supplement or
amendment. This Agreement may be amended or supplemented at any time with the
approval of a majority of the registered holders of the Right Certificates
(and, prior to the Distribution Date, the Common Stock). Notwithstanding
anything contained in this Rights Agreement to the contrary, no supplement or
amendment shall be made which changes the Redemption Price or the Final
Expiration Date and supplements or amendments may be made after the time that
any Person becomes an Acquiring Person only if at the time of the action of
the Board of Directors approving such supplement or amendment there are then
in office not less than two Continuing Directors and such supplement or
amendment is approved by a majority of the Continuing Directors then in
office.
Section 27. Exchange. (a) The Board of Directors of the Company may,
at its option, at any time after any Person becomes an Acquiring Person,
exchange all or part of the then outstanding and exercisable Rights (which
shall not include Rights that have become void pursuant to the provisions of
Section 7(e) hereof) for shares of Common Stock at an exchange ratio of one
share per Right, appropriately adjusted to reflect any stock split, stock
dividend or similar transaction occurring after the date hereof (such
exchange ratio being hereinafter referred to as the "Exchange Ratio").
Notwithstanding the foregoing, the Board of Directors shall not be empowered
to effect such exchange at any time after any Person (other than an Exempt
Person), together with all Affiliates and Associates of such Person, becomes
the Beneficial Owner of 50% or more of the Voting Stock then outstanding.
(b) Immediately upon the action of the Board of Directors of the
Company ordering the exchange of any Rights pursuant to paragraph (a) of this
Section 27 and without
51
<PAGE>
any further action and without any notice, the right to exercise such Rights
shall terminate and the only right thereafter of a holder of such Rights
shall be to receive that number of shares of Common Stock equal to the number
of such Rights held by such holder multiplied by the Exchange Ratio. The
Company shall promptly give public notice of any such exchange; provided,
however, that the failure to give, or any defect in, such notice shall not
affect the validity of such exchange. The Company promptly shall mail a
notice of any such exchange to all of the holders of such Rights at their
last addresses as they appear upon the registry books of the Rights Agent.
Any notice which is mailed in the manner herein provided shall be deemed
given, whether or not the holder receives the notice. Each such notice of
exchange will state the method by which the exchange of the shares of Common
Stock for Rights will be effected and, in the event of any partial exchange,
the number of Rights which will be exchanged. Any partial exchange shall be
effected pro rata based on the number of Rights (other than Rights which have
become void pursuant to the provisions of Section 7(e) hereof) held by each
holder of Rights.
(c) In the event that there shall not be sufficient shares of Common
Stock issued but not outstanding or authorized but unissued to permit any
exchange of Rights as contemplated in accordance with this Section 27, the
Company shall take all such action as may be necessary to authorize
additional shares of Common Stock for issuance upon exchange of the Rights.
(d) The Company shall not be required to issue fractions of shares
of Common Stock or to distribute certificates which evidence fractional
shares. In lieu of such fractional shares, the Company shall pay to the
registered holders of the Right Certificates
52
<PAGE>
with regard to which such fractional shares of Common Stock would otherwise
be issuable an amount in cash equal to the same fraction of the current
market value of a whole share of Common Stock. For the purposes of this
paragraph (d), the current market value of a whole share of Common Stock
shall be the closing price of a share of Common Stock for the Trading Day
immediately prior to the date of exchange pursuant to this Section 27.
Section 28. Successors. All of the covenants and provisions of this
Rights Agreement by or for the benefit of the Company or the Rights Agent shall
bind and inure to the benefit of their respective successors and assigns
hereunder.
Section 29. Benefits of this Rights Agreement. Nothing in this
Rights Agreement shall be construed to give to any person or corporation
other than the Company, the Rights Agent and the registered holders of the
Right Certificates (and, prior to the Distribution Date, the holders of
Common Stock in their capacity as holders of the Rights) any legal or
equitable right, remedy or claim under this Rights Agreement; but this Rights
Agreement shall be for the sole and exclusive benefit of the Company, the
Rights Agent and the holders of record of the Right Certificates (and, prior
to the Distribution Date, the holders of Common Stock in their capacity as
holders of the Rights).
Section 30. Delaware Contract. This Rights Agreement and each Right
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be governed by and
construed and enforced in accordance with the laws of such state applicable to
contracts to be made and performed entirely within such state.
53
<PAGE>
Section 31. Counterparts. This Rights Agreement may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.
Section 32. Descriptive Headings. Descriptive headings of the several
Sections of this Rights Agreement are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.
Section 33. Severability. If any term, provision, covenant or
restriction of this Rights Agreement is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Rights
Agreement shall remain in full force and effect and shall in no way be affected,
impaired or invalidated.
54
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Amended and
Restated Rights Agreement to be duly executed, all as of the day and year
first above written.
By:
-----------------------------------
James F. Dannhauser
Chief Financial Officer
By:
-----------------------------------
Name:
Title:
<PAGE>
EXHIBIT A
UNDER CERTAIN CIRCUMSTANCES AS PROVIDED IN THE
RIGHTS AGREEMENT (AS REFERRED TO BELOW), RIGHTS
ISSUED TO OR BENEFICIALLY OWNED BY ACQUIRING
PERSONS OR THEIR AFFILIATES OR ASSOCIATES (AS SUCH
TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY
SUBSEQUENT HOLDER OF SUCH RIGHTS SHALL BE NULL AND
VOID AND MAY NOT BE TRANSFERRED TO ANY PERSON.
PREMIER PARKS INC.
SUMMARY OF RIGHTS TO PURCHASE
SERIES A JUNIOR PREFERRED STOCK
The Board of Directors of Premier Parks Inc. (the "Company") has
declared a dividend distribution of one Preferred Stock Purchase Right for
each outstanding share of Common Stock, par value $.05 per share (the "Common
Stock"), of the Company. The distribution is payable as of January 12, 1998
to stockholders of record on that date. Each Right entitles the registered
holder to purchase from the Company one one-thousandth (1/1000) of a share of
preferred stock of the Company, designated as Series A Junior Preferred Stock
(the "Preferred Stock") at a price of $250.00 per one one-thousandth (1/1000)
of a share ("Exercise Price"). The description and terms of the Rights are
set forth in a Rights Agreement (the "Rights Agreement") between the Company
and Bank One Trust Company, N.A., as Rights Agent (the "Rights Agent").
As discussed below, initially the Rights will not be exercisable,
certificates will not be sent to stockholders and the Rights will
automatically trade with the Common Stock.
The Rights, unless earlier redeemed by the Board of Directors,
become exercisable upon the close of business on the day (the "Distribution
Date") which is the earlier of (i) the tenth day following a public
announcement that a person or group of affiliated or associated persons, with
certain exceptions set forth below, has acquired beneficial ownership of 15%
or more of the outstanding voting stock of the Company (an "Acquiring
Person") and (ii) the tenth business day (or such later date as may be
determined by the Board of Directors prior to such time as any person or
group of affiliated or associated persons becomes an Acquiring Person) after
the date of the commencement or announcement of a person's or group's
intention to commence a tender or exchange offer the consummation of which
would result in the ownership of 15% or more of the Company's outstanding
voting stock (even if no shares are actually purchased pursuant to such
offer); prior thereto, the Rights would not be exercisable, would not be
represented by a separate certificate, and would not be transferable apart
from the Company's Common Stock, but will instead be evidenced, with respect
to any of the Common Stock certificates outstanding as of January 12, 1998,
by such Common Stock certificate with a copy of this Summary of Rights
attached thereto. An
<PAGE>
Acquiring Person does not include (A) the Company, (B) any subsidiary of the
Company, (C) any employee benefit plan or employee stock plan of the Company
or of any subsidiary of the Company, or any trust or other entity organized,
appointed, established or holding Common Stock for or pursuant to the terms
of any such plan or (D) any person or group whose ownership of 15% or more of
the shares of voting stock of the Company then outstanding results solely
from (i) any action or transaction or transactions approved by the Board of
Directors before such person or group became an Acquiring Person or (ii) a
reduction in the number of issued and outstanding shares of voting stock of
the Company pursuant to a transaction or transactions approved by the Board
of Directors (provided that any person or group that does not become an
Acquiring Person by reason of clause (i) or (ii) above shall become an
Acquiring Person upon acquisition of an additional 1% of the Company's voting
stock unless such acquisition of additional voting stock will not result in
such person or group becoming an Acquiring Person by reason of such clause
(i) or (ii)).
Until the Distribution Date (or earlier redemption or expiration of
the Rights), new Common Stock certificates issued after January 12, 1998 will
contain a legend incorporating the Rights Agreement by reference. Until the
Distribution Date (or earlier redemption or expiration of the Rights), the
surrender for transfer of any of the Common Stock certificates outstanding as
of January 12, 1998, with or without a copy of this Summary of Rights
attached thereto, will also constitute the transfer of the Rights associated
with the Common Stock represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights
("Right Certificates") will be mailed to holders of record of the Common
Stock as of the close of business on the Distribution Date and such separate
certificates alone will evidence the Rights from and after the Distribution
Date.
The Rights are not exercisable until the Distribution Date. The
Rights will expire at the earlier of (i) the close of business on January 12,
2008, (ii) redemption by The Company as described below or (iii) early
expiration pursuant to the consummation by the Company of a merger pursuant
to Section 251(g) of the Delaware General Corporation Law.
The Preferred Stock is nonredeemable and, unless otherwise provided
in connection with the creation of a subsequent series of preferred stock,
subordinate to any other series of the Company's preferred stock. The
Preferred Stock may not be issued except upon exercise of Rights. Each share
of Preferred Stock will be entitled to receive when, as and if declared, a
quarterly dividend in an amount equal to the greater of $10.00 per share or
1,000 times the cash dividends declared on the Company's Common Stock. In
addition, Preferred Stock is entitled to 1,000 times any non-cash dividends
(other than dividends payable in equity securities) declared on the Common
Stock, in like kind. In the event of the liquidation of the Company, the
holders of Preferred Stock will be entitled to receive, for each share of
Preferred Stock, a payment in an amount equal to the greater of $250,000.00
or 1,000 times the payment made per share of Common Stock. Each share of
Preferred Stock will have 1,000 votes, voting together with the Common Stock.
In the event of any merger, consolidation or other transaction in which
Common Stock is exchanged, each share of Preferred Stock will be entitled to
receive 1,000 times the amount eceived per share of Common Stock. The rights
of
2
<PAGE>
Preferred Stock as to dividends, liquidation and voting are protected by
anti-dilution provisions.
The number of shares of Preferred Stock issuable upon exercise of
the Rights is subject to certain adjustments from time to time in the event
of a stock dividend on, or a subdivision or combination of, the Common Stock.
The Exercise Price for the Rights is subject to adjustment in the event of
extraordinary distributions of cash or other property to holders of Common
Stock.
Unless the Rights are earlier redeemed, in the event that, after the
time that a Person becomes an Acquiring Person, the Company were to be
acquired in a merger or other business combination (in which any shares of
Common Stock are changed into or exchanged for other securities or assets) or
more than 50% of the assets or earning power of the Company and its
subsidiaries (taken as a whole) were to be sold or transferred in one or a
series of related transactions, the Rights Agreement provides that proper
provision will be made so that each holder of record of a Right will from and
after such date have the right to receive, upon payment of the Exercise
Price, that number of shares of common stock of the acquiring company having
a market value at the time of such transaction equal to two times the
Exercise Price.
In addition, unless the Rights are earlier redeemed, in the event
that a person or group becomes the beneficial owner of 15% or more of the
Company's voting stock, the Rights Agreement provides that proper provisions
will be made so that each holder of record of a Right, other than the
Acquiring Person (whose Rights will thereupon become null and void), will
thereafter have the right to receive, upon payment of the Exercise Price,
that number of shares of the Preferred Stock having a market value at the
time of the transaction equal to two times the Exercise Price (such market
value to be determined with reference to the market value of the Company's
Common Stock as provided in the Rights Agreement).
At any time after any person or group becomes an Acquiring Person
and prior to the acquisition by such person or group of 50% or more of the
outstanding voting stock, the Board of Directors of the Company may exchange
the Rights (other than Rights owned by such person or group which will have
become void), in whole or in part, at an exchange ratio of one share of
Common Stock per Right (subject to adjustment).
Fractions of shares of Preferred Stock (other than fractions which
are integral multiples of one one-thousandth of a share) may, at the election
of the Company, be evidenced by depositary receipts. The Company may also
issue cash in lieu of fractional shares which are not integral multiples of
one one-thousandth of a share.
At any time on or prior to the close of business on the earlier of
(i) the tenth day after the time that a person has become an Acquiring Person
(or such later date as a majority of the Board of Directors and a majority of
the Continuing Directors (as defined in the Rights Agreement) may determine)
or (ii) January 12, 2008, the Company may redeem the
3
<PAGE>
Rights in whole, but not in part, at a price of $.01 per Right (the
"Redemption Price"). The Rights may be redeemed after the time that any
Person has become an Acquiring Person only if approved by a majority of the
Continuing Directors. Immediately upon the effective time of the action of
the Board of Directors of the Company authorizing redemption of the Rights,
the right to exercise the Rights will terminate and the only right of the
holders of Rights will be to receive the Redemption Price.
For as long as the Rights are then redeemable, the Company may,
except with respect to the redemption price or date of expiration of the
Rights, amend the Rights in any manner, including an amendment to extend the
time period in which the Rights may be redeemed. At any time when the Rights
are not then redeemable, the Company may amend the Rights in any manner that
does not materially adversely affect the interests of holders of the Rights
as such. Amendments to the Rights Agreement from and after the time that any
Person becomes an Acquiring Person requires the approval of a majority of the
Continuing Directors (as provided in the Rights Agreement).
Until a Right is exercised, the holder, as such, will have no rights
as a stockholder of the Company, including, without limitation, the right to
vote or to receive dividends.
A copy of the Rights Agreement has been filed with the Securities
and Exchange Commission as an Exhibit to a Current Report on Form 8-K, as
amended. A copy of the Rights Agreement is available free of charge from the
Company. This summary description of the Rights does not purport to be
complete and is qualified in its entirety by reference to the Rights
Agreement which is incorporated in this summary description herein by
reference.
4
<PAGE>
EXHIBIT B
[Form of Right Certificate]
Certificate No. W- ______ Rights
NOT EXERCISABLE AFTER JANUARY 12, 2008 OR EARLIER IF REDEEMED. THE
RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY AND
UNDER CERTAIN OTHER CIRCUMSTANCES, AT $.01 PER RIGHT (SUBJECT TO
ADJUSTMENT), ON THE TERMS SET FORTH OR REFERRED TO IN THE RIGHTS
AGREEMENT. UNDER CERTAIN CIRCUMSTANCES AS PROVIDED IN THE RIGHTS
AGREEMENT (AS REFERRED TO BELOW), RIGHTS ISSUED TO OR BENEFICIALLY
OWNED BY ACQUIRING PERSONS OR THEIR AFFILIATES OR ASSOCIATES (AS SUCH
TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) OR ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS SHALL BE NULL AND VOID AND MAY NOT BE TRANSFERRED TO ANY
PERSON.
RIGHT CERTIFICATE
This certifies that , or registered assigns, is the
registered owner of the number of Rights set forth above, each of which
entitles the owner thereof, subject to the terms, provisions and conditions
of the Rights Agreement dated as of January 12, 1998 (the "Rights Agreement")
between Premier Parks Inc., a Delaware corporation (the "Company"), and Bank
One Trust Company, N.A., a national banking association, (the "Rights
Agent"), to purchase from the Company at any time after the Distribution Date
(as such term is defined in the Rights Agreement) and prior to 5:00 P.M.
(Oklahoma City, Oklahoma time) on January 12, 2008 at the office of the
Rights Agent designated in the Rights Agreement for such purpose, or its
successor as Rights Agent, in Oklahoma City, Oklahoma, one one-thousandth
(1/1000) of a fully paid nonassessable share of Series A Junior Preferred
Stock (the "Preferred
<PAGE>
Stock") of the Company at a purchase price of $25.00, as the same may from
time to time be adjusted in accordance with the Rights Agreement (the
"Exercise Price"), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase attached hereto duly executed.
As provided in the Rights Agreement, the Exercise Price and the
number of shares of Preferred Stock which may be purchased upon the exercise
of the Rights evidenced by this Right Certificate are subject to modification
and adjustment upon the happening of certain events and, upon the happening
of certain events, securities other than shares of Preferred Stock, or other
property, may be acquired upon exercise of the Rights evidenced by this Right
Certificate, as provided in the Rights Agreement.
This Right Certificate is subject to all of the terms, provisions
and conditions of the Rights Agreement, which terms, provisions and
conditions are incorporated herein by reference and made a part hereof and to
which Rights Agreement reference is hereby made for a full description of the
rights, limitations of rights, obligations, duties and immunities of the
Rights Agent, the Company and the holders of record of Right Certificates.
Copies of the Rights Agreement are on file at the principal executive office
of the Company.
This Right Certificate, with or without other Right Certificates,
upon surrender at the office of the Rights Agent designated in the Rights
Agreement for such purpose, may be exchanged for another Right Certificate or
Right Certificates of like tenor and date evidencing Rights entitling the
holder of record to purchase a like aggregate number of shares of Preferred
Stock as the Rights evidenced by the Right Certificate or Right Certificates
surrendered shall have entitled such holder to purchase. If this Right
Certificate
2
<PAGE>
shall be exercised in part, the holder shall be entitled to receive upon
surrender hereof, another Right Certificate or Right Certificates for the
number of whole Rights not exercised.
Subject to the provisions of the Rights Agreement, the Rights
evidenced by this Certificate may be redeemed by the Company at its option or
under certain other circumstances at a redemption price of $.01 per Right.
No fractional shares of Preferred Stock (other than fractions which
are integral multiples of one one-thousandth (1/1000) of a share) are
required to be issued upon the exercise of any Right or Rights evidenced
hereby, and in lieu thereof the Company may cause depositary receipts to be
issued and/or a cash payment may be made, as provided in the Rights Agreement.
No holder of this Right Certificate, as such, shall be entitled to
vote or receive dividends or be deemed for any purpose the holder of
Preferred Stock or of any other securities of the Company which may at any
time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as
such, any of the rights of a stockholder of the Company or any right to vote
for the election of directors or upon any matter submitted to stockholders at
meeting thereof, or to give or withhold consent to any corporate action or to
receive notice of meetings or other actions affecting stockholders (except as
provided in the Rights Agreement), or to receive dividends or subscription
rights, or otherwise, until the Right or Rights evidenced by this Right
Certificate shall have been exercised as provided in the Rights Agreement.
This Right Certificate shall not be valid or obligatory for any
purpose until it shall have been countersigned by the Rights Agent.
3
<PAGE>
WITNESS the facsimile signature of the proper officers of the
Company and its corporate seal. Dated as of _____________, 199_.
ATTEST:
By
- ----------------------------- ----------------------------
Secretary Title:
Countersigned:
[Rights Agent]
By
- -----------------------------
Authorized Signature
4
<PAGE>
[Form of Reverse Side of Right Certificate]
FORM OF ASSIGNMENT
(To be executed by the registered holder if
such holder desires to transfer the Right Certificates.)
FOR VALUE RECEIVED ___________________________________________
hereby sells, assigns and transfers unto________________________________________
________________________________________________________________________________
(Please print name and address of transferee)
________________________________________________________________________________
Rights evidenced by this Right Certificate, together with all right, title and
interest therein, and does hereby irrevocably constitute and appoint Attorney to
transfer the within Right Certificate on the books of the within-named Company,
with full power of substitution. Dated: ________________, 199__
---------------------------
Signature
Signature Guaranteed:
5
<PAGE>
CERTIFICATE
The undersigned hereby certifies by checking the appropriate boxes
that:
(1) this Right Certificate [ ] is [ ] is not being sold, assigned or
transferred by or on behalf of a Person who is or was an Acquiring Person or
an Associate or an Affiliate thereof (as such terms are defined in the Rights
Agreement); and
(2) after due inquiry and to the best knowledge of the undersigned,
it [ ] did [ ] did not acquire the Rights evidenced by this Right Certificate
from any Person who is, was or subsequently became an Acquiring Person or an
Affiliate or Associate thereof (as such terms are defined in the Rights
Agreement).
Dated: ____________, 199__
--------------------------------------
Signature
6
<PAGE>
NOTICE
The signature to the foregoing Assignment and Certificate must
correspond to the name as written upon the face of this Right Certificate in
every particular, without alteration or enlargement or any change whatsoever.
7
<PAGE>
FORM OF ELECTION TO PURCHASE
(To be executed if registered holder
desires to exercise the Right Certificate.)
TO _____________________:
The undersigned hereby irrevocably elects to exercise
_________________ Rights represented by this Right Certificate to purchase the
shares of Preferred Stock issuable upon the exercise of such Rights and requests
that certificates for such share(s) be issued in the following name:
Please insert social security
or other identifying number:____________________________________________________
________________________________________________________________________________
(Please print name and address)
________________________________________________________________________________
If such number of Rights shall not be all the Rights evidenced by this Right
Certificate, a new Right Certificate for the balance remaining of such Rights
shall be registered in the name of and delivered to:
8
<PAGE>
Please insert social security
or other identifying number:____________________________________________________
________________________________________________________________________________
(Please print name and address)
________________________________________________________________________________
Dated: _____________, 199__
------------------------------------
Signature
(Signature must conform in all
respects to name of holder as
specified on the fact of this
Right Certificate)
Signature Guaranteed:
9
<PAGE>
EXHIBIT C
FORM OF AMENDED AND RESTATED
CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS
OF
SERIES A JUNIOR PREFERRED STOCK
OF
PREMIER PARKS INC.
Pursuant to Section 151 of the
Delaware General Corporation Law
I, James F. Dannhauser, Chief Financial Officer of Premier Parks
Inc., a corporation organized and existing under the Delaware General
Corporation Law (the "Company"), in accordance with the provisions of Section
151 of such law, DO HEREBY CERTIFY that pursuant to the authority conferred
upon the Board of Directors by Article IV of the Certificate of Incorporation
of the Company, the Board of Directors on February 4, 1998 adopted the
following resolution which amend a series of Preferred Stock previously
designated as Series A Junior Preferred Stock, as follows:
RESOLVED, that pursuant to Section 151 of the Delaware General
Corporation Law and the authority vested in the Board of Directors of the
Company in accordance with the provisions of ARTICLE IV of the Certificate of
Incorporation of the Company, a series of Preferred Stock of the Company be,
and hereby is, amended, and the powers, designations, preferences and
relative, participating, optional or other special rights of the shares of
such series, and the qualifications, limitations or restrictions thereof, be,
and hereby are, amended and restated as follows:
Section 1. Designation and Amount. The shares of such series shall
be designated as "Series A Junior Preferred Stock" (the "Series A Preferred
Stock") and the number of shares constituting such series shall be 20,640.
1
<PAGE>
Section 2. Dividends and Distributions. (A) Subject to the
provisions for adjustment hereinafter set forth, the holders of shares of
Series A Preferred Stock shall be entitled to receive, when, as and if
declared by the Board of Directors out of funds legally available for the
purpose, (i) cash dividends in an amount per share (rounded to the nearest
cent) equal to 1,000 times the aggregate per share amount of all cash
dividends declared or paid on the Common Stock, $0.05 par value per share, of
the Company (the "Common Stock") and (ii) a preferential cash dividend (the
"Preferential Dividends"), if any, in preference to the holders of Common
Stock, on the first day of April, July, October and January of each year
(each a "Quarterly Dividend Payment Date"), commencing on the first Quarterly
Dividend Payment Date after the first issuance of a share or fraction of a
share of Series A Preferred Stock, payable in an amount (except in the case
of the first Quarterly Dividend Payment if the date of the first issuance of
Series A Preferred Stock is a date other than a Quarterly Dividend Payment
date, in which case such payment shall be a prorated amount of such amount)
equal to $10.00 per share of Series A Preferred Stock less the per share
amount of all cash dividends declared on the Series A Preferred Stock
pursuant to clause (i) of this sentence since the immediately preceding
Quarterly Dividend Payment Date or, with respect to the first Quarterly
Dividend Payment Date, since the first issuance of any share or fraction of a
share of Series A Preferred Stock. In the event the Company shall, at any
time after the issuance of any share or fraction of a share of Series A
Preferred Stock, make any distribution on the shares of Common Stock of the
Company, whether by way of a dividend or a reclassification of stock, a
recapitalization, reorganization or partial liquidation of the Company or
otherwise, which is payable in cash or any debt security, debt instrument,
real or personal property or
2
<PAGE>
any other property (other than cash dividends subject to the immediately
preceding sentence, a distribution of shares of Common Stock or other capital
stock of the Company or a distribution of rights or warrants to acquire any
such share, including any debt security convertible into or exchangeable for
any such share, at a price less than the Fair Market Value (as hereinafter
defined) of such share), then, and in each such event, the Company shall
simultaneously pay on each then outstanding share of Series A Preferred Stock
of the Company a distribution, in like kind, of 1,000 times such distribution
paid on a share of Common Stock (subject to the provisions for adjustment
hereinafter set forth). The dividends and distributions on the Series A
Preferred Stock to which holders thereof are entitled pursuant to clause (i)
of the first sentence of this paragraph and pursuant to the second sentence of
this paragraph are hereinafter referred to as "Dividends" and the multiple of
such cash and non-cash dividends on the Common Stock applicable to the
determination of the Dividends, which shall be 1,000 initially but shall be
adjusted from time to time as hereinafter provided, is hereinafter referred to
as the "Dividend Multiple." In the event the Company shall at any time after
January 12, 1998 declare or pay any dividend or make any distribution on
Common Stock payable in shares of Common Stock, or effect a subdivision or
split or a combination, consolidation or reverse split of the outstanding
shares of Common Stock into a greater or lesser number of shares of Common
Stock, then in each such case the Dividend Multiple thereafter applicable to
the determination of the amount of Dividends which holders of shares of Series
A Preferred Stock shall be entitled to receive shall be the Dividend Multiple
applicable immediately prior to such event multiplied by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the
3
<PAGE>
denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.
(B) The Company shall declare each Dividend at the same time it
declares any cash or non-cash dividend or distribution on the Common Stock in
respect of which a Dividend is required to be paid. No cash or non-cash
dividend or distribution on the Common Stock in respect of which a Dividend
is required to be paid shall be paid or set aside for payment on the Common
Stock unless a Dividend in respect of such dividend or distribution on the
Common Stock shall be simultaneously paid, or set aside for payment, on the
Series A Preferred Stock.
(C) Preferential Dividends shall begin to accrue on outstanding
shares of Series A Preferred Stock from the Quarterly Dividend Payment Date
next preceding the date of issuance of any shares of Series A Preferred
Stock. Accrued but unpaid Preferential Dividends shall cumulate but shall not
bear interest. Preferential Dividends paid on the shares of Series A
Preferred Stock in an amount less than the total amount of such dividends at
the time accrued and payable on such shares shall be allocated pro rata on a
share-by-share basis among all such shares at the time outstanding.
Section 3. Voting Rights. The holders of shares of Series A Preferred
Stock shall have the following voting rights:
(A) Subject to the provisions for adjustment hereinafter set forth,
each share of Series A Preferred Stock shall entitle the holder thereof to
1,000 votes on all matters submitted to a vote of the holders of the Common
Stock. The number of votes which a holder of Series A Preferred Stock is
entitled to cast, as the same may be adjusted from time to
4
<PAGE>
time as hereinafter provided, is hereinafter referred to as the "Vote
Multiple." In the event the Company shall at any time after January 12, 1998
declare or pay any dividend on Common Stock payable in shares of Common Stock,
or effect a subdivision or split or a combination, consolidation or reverse
split of the outstanding shares of Common Stock into a greater or lesser
number of shares of Common Stock, then in each such case the Vote Multiple
thereafter applicable to the determination of the number of votes per share to
which holders of shares of Series A Preferred Stock shall be entitled after
such event shall be the Vote Multiple immediately prior to such event
multiplied by a fraction the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of
which is the number of shares of Common Stock that were outstanding
immediately prior to such event.
(B) Except as otherwise provided herein, in the Restated Certificate
of Incorporation or By-laws, the holders of shares of Series A Preferred
Stock and the holders of shares of Common Stock shall vote together as one
class on all matters submitted to a vote of stockholders of the Company.
(C) In the event that the Preferential Dividends accrued on the
Series A Preferred Stock for four or more quarterly dividend periods, whether
consecutive or not, shall not have been declared and paid or irrevocably set
aside for payment, the holders of record of Preferred Stock of the Company of
all series (including the Series A Preferred Stock), other than any series in
respect of which such right is expressly withheld by the Restated Certificate
of Incorporation or the authorizing resolutions included in any Certificate
of Designations therefor, shall have the right, at the next meeting of
stock-holders called for the election of
5
<PAGE>
directors, to elect two members to the Board of Directors, which directors
shall be in addition to the number required by the By-laws prior to such
event, to serve until the next Annual Meeting and until their successors are
elected and qualified or their earlier resignation, removal or incapacity or
until such earlier time as all accrued and unpaid Preferential Dividends upon
the outstanding shares of Series A Preferred Stock shall have been paid (or
irrevocably set aside for payment) in full. The holders of shares of Series A
Preferred Stock shall continue to have the right to elect directors as
provided by the immediately preceding sentence until all accrued and unpaid
Preferential Dividends upon the outstanding shares of Series A Preferred Stock
shall have been paid (or set aside for payment) in full. Such directors may be
removed and replaced by such stockholders, and vacancies in such directorships
may be filled only by such stockholders (or by the remaining director elected
by such stockholders, if there be one) in the manner permitted by law;
provided, however, that any such action by stockholders shall be taken at a
meeting of stockholders and shall not be taken by written consent thereto.
(D) Except as otherwise required by the Certificate of Incorporation
or Bylaws or set forth herein, holders of Series A Preferred Stock shall have
no other special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock
as set forth herein) for the taking of any corporate action.
Section 4. Certain Restrictions. (A) Whenever Preferential Dividends
or Dividends are in arrears or the Company shall be in default of payment
thereof, thereafter and until all accrued and unpaid Preferential Dividends
and Dividends, whether or not declared, on shares of Series A Preferred Stock
outstanding shall have been paid or set irrevocably aside
6
<PAGE>
for payment in full, and in addition to any and all other rights which any
holder of shares of Series A Preferred Stock may have in such circumstances,
the Company shall not
(i) declare or pay dividends on, make any other
distributions on, or redeem or purchase or otherwise acquire for
consideration, any shares of stock ranking junior (either as to
dividends or upon liquidation, dissolution or winding up) to the
Series A Preferred Stock;
(ii) declare or pay dividends on or make any other
distributions on any shares of stock ranking on a parity as to
dividends with the Series A Preferred Stock, unless dividends are
paid ratably on the Series A Preferred Stock and all such parity
stock on which dividends are payable or in arrears in proportion to
the total amounts to which the holders of all such shares are then
entitled if the full dividends accrued thereon were to be paid;
(iii) except as permitted by subparagraph (iv) of
this paragraph 4(A), redeem or purchase or otherwise acquire for
consideration shares of any stock ranking on a parity (either as to
dividends or upon liquidation, dissolution or winding up) with the
Series A Preferred Stock; provided that the Company may at any time
redeem, purchase or otherwise acquire shares of any such parity
stock in exchange for shares of any stock of the Company ranking
junior (both as to dividends and upon liquidation, dissolution or
winding up) to the Series A Preferred Stock; or
(iv) purchase or otherwise acquire for consideration
any shares of Series A Preferred Stock, or any shares of stock
ranking on a parity with the Series A Preferred Stock (either as to
dividends or upon liquidation, dissolution or winding up), except in
7
<PAGE>
accordance with a purchase offer made to all holders of such shares
upon such terms as the Board of Directors, after consideration of the
respective annual dividend rates and other relative rights and
preferences of the respective series and classes, shall determine in
good faith will result in fair and equitable treatment among the
respective series or classes.
(B) The Company shall not permit any Subsidiary (as hereinafter
defined) of the Company to purchase or otherwise acquire for consideration
any shares of stock of the Company unless the Company could, under paragraph
(A) of this Section 4, purchase or otherwise acquire such shares at such time
and in such manner. A "Subsidiary" of the Company shall mean any corporation
or other entity of which securities or other ownership interests having
ordinary voting power sufficient to elect a majority of the board of
directors of such corporation or other entity or other persons performing
similar functions are beneficially owned, directly or indirectly, by the
Company or by any corporation or other entity that is otherwise controlled by
the Company.
(C) The Company shall not issue any shares of Series A Preferred
Stock except upon exercise of Rights issued pursuant to that certain Amended
and Restated Rights Agreement dated as of January 12, 1998 between the
Company and Bank One Trust Company, N.A., as Rights Agent, a copy of which is
on file with the Secretary of the Company at its principal executive office
and shall be made available to stockholders of record without charge upon
written request therefor addressed to said Secretary. Notwithstanding the
foregoing sentence, nothing contained in the provisions hereof shall prohibit
or restrict the Company from issuing for any
8
<PAGE>
purpose any series of Preferred Stock with rights and privileges similar to,
different from, or greater than, those of the Series A Preferred Stock.
Section 5. Reacquired Shares. Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall
be retired and cancelled promptly after the acquisition thereof. All such
shares upon their retirement and cancellation shall become authorized but
unissued shares of Preferred Stock, without designation as to series, and
such shares may be reissued as part of a new series of Preferred Stock to be
created by resolution or resolutions of the Board of Directors.
Section 6. Liquidation, Dissolution or Winding Up. Upon any
voluntary or involuntary liquidation, dissolution or winding up of the
Company, no distribution shall be made (i) to the holders of shares of stock
ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the Series A Preferred Stock unless the holders of shares of
Series A Preferred Stock shall have received for each share of Series A
Preferred Stock, subject to adjustment as hereinafter provided, (A)
$250,000.00 plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment
or, (B) if greater than the amount specified in clause (i)(A) of this
sentence, an amount equal to 1,000 times the aggregate amount to be
distributed per share to holders of Common Stock, as the same may be adjusted
as hereinafter provided and (ii) to the holders of stock ranking on a parity
upon liquidation, dissolution or winding up with the Series A Preferred
Stock, unless simultaneously therewith distributions are made ratably on the
Series A Preferred Stock and all other shares of such parity stock in
proportion to the total amounts to which the holders of shares of Series A
Preferred Stock are entitled under clause (i)(A) of
9
<PAGE>
this sentence and to which the holders of such parity shares are entitled, in
each case upon such liquidation, dissolution or winding up. The amount to
which holders of Series A Preferred Stock may be entitled upon liquidation,
dissolution or winding up of the Company pursuant to clause (i)(B) of the
foregoing sentence is hereinafter referred to as the "Participating
Liquidation Amount" and the multiple of the amount to be distributed to
holders of shares of Common Stock upon the liquidation, dissolution or winding
up of the Company applicable pursuant to said clause to the determination of
the Participating Liquidation Amount, as said multiple may be adjusted from
time to time as hereinafter provided, is hereinafter referred to as the
"Liquidation Multiple". In the event the Company shall at any time after
January 12, 1998 declare or pay any dividend on Common Stock payable in shares
of Common Stock, or effect a subdivision or split or a combination,
consolidation or reverse split of the outstanding shares of Common Stock into
a greater or lesser number of shares of Common Stock, then, in each such case,
the Liquidation Multiple thereafter applicable to the determination of the
Participating Liquidation Amount to which holders of Series A Preferred Stock
shall be entitled after such event shall be the Liquidation Multiple
applicable immediately prior to such event multiplied by a fraction the
numerator of which is the number of shares of Common Stock outstanding
immediately after such event and the denominator of which is the number of
shares of Common Stock that were outstanding immediately prior to such event.
Section 7. Certain Reclassifications and Other Events. (A) In the
event that holders of shares of Common Stock of the Company receive after
January 12, 1998 in respect of their shares of Common Stock any share of
capital stock of the Company (other than any
10
<PAGE>
share of Common Stock of the Company), whether by way of reclassification,
recapitalization, reorganization, dividend or other distribution or otherwise
(a "Transaction"), then, and in each such event, the dividend rights, voting
rights and rights upon the liquidation, dissolution or winding up of the
Company of the shares of Series A Preferred Stock shall be adjusted so that
after such event the holders of Series A Preferred Stock shall be entitled, in
respect of each share of Series A Preferred Stock held, in addition to such
rights in respect thereof to which such holder was entitled immediately prior
to such adjustment, to (i) such additional dividends as equal the Dividend
Multiple in effect immediately prior to such Transaction multiplied by the
additional dividends which the holder of a share of Common Stock shall be
entitled to receive by virtue of the receipt in the Transaction of such
capital stock, (ii) such additional voting rights as equal the Vote Multiple
in effect immediately prior to such Transaction multiplied by the additional
voting rights which the holder of a share of Common Stock shall be entitled to
receive by virtue of the receipt in the Transaction of such capital stock and
(iii) such additional distributions upon liquidation, dissolution or winding
up of the Company as equal the Liquidation Multiple in effect immediately
prior to such Transaction multiplied by the additional amount which the holder
of a share of Common Stock shall be entitled to receive upon liquidation,
dissolution or winding up of the Company by virtue of the receipt in the
Transaction of such capital stock, as the case may be, all as provided by the
terms of such capital stock.
(B) In the event that holders of shares of Common Stock of the
Company receive after January 12, 1998 in respect of their shares of Common
Stock any right or warrant to purchase Common Stock (including as such a
right, for all purposes of this
11
<PAGE>
paragraph, any security convertible into or exchangeable for Common Stock) at
a purchase price per share less than the Fair Market Value of a share of
Common Stock on the date of issuance of such right or warrant, then and in
each such event the dividend rights, voting rights and rights upon the
liquidation, dissolution or winding up of the Company of the shares of Series
A Preferred Stock shall each be adjusted so that after such event the Dividend
Multiple, the Vote Multiple and the Liquidation Multiple shall each be the
product of the Dividend Multiple, the Vote Multiple and the Liquidation
Multiple, as the case may be, in effect immediately prior to such event
multiplied by a fraction the numerator of which shall be the number of shares
of Common Stock outstanding immediately before such issuance of rights or
warrants plus the maximum number of shares of Common Stock which could be
acquired upon exercise in full of all such rights or warrants and the
denominator of which shall be the number of shares of Common Stock outstanding
immediately before such issuance of rights or warrants plus the number of
shares of Common Stock which could be purchased, at the Fair Market Value of
the Common Stock at the time of such issuance, by the maximum aggregate
consideration payable upon exercise in full of all such rights or warrants.
(C) In the event that holders of shares of Common Stock of the
Company receive after January 12, 1998 in respect of their shares of Common
Stock any right or warrant to purchase capital stock of the Company (other
than shares of Common Stock), including as such a right, for all purposes of
this paragraph, any security convertible into or exchangeable for capital
stock of the Company (other than Common Stock), at a purchase price per share
less than the Fair Market Value of such shares of capital stock on the date
of issuance of such right or warrant, then and in each such event the
dividend rights, voting
12
<PAGE>
rights and rights upon liquidation, dissolution or winding up of the Company
of the shares of Series A Preferred Stock shall each be adjusted so that after
such event each holder of a share of Series A Preferred Stock shall be
entitled, in respect of each share of Series A Preferred Stock held, in
addition to such rights in respect thereof to which such holder was entitled
immediately prior to such event, to receive (i) such additional dividends as
equal the Dividend Multiple in effect immediately prior to such event
multiplied, first, by the additional dividends to which the holder of a share
of Common Stock shall be entitled upon exercise of such right or warrant by
virtue of the capital stock which could be acquired upon such exercise and
multiplied again by the Discount Fraction (as hereinafter defined) and (ii)
such additional voting rights as equal the Vote Multiple in effect immediately
prior to such event multiplied, first, by the additional voting rights to
which the holder of a share of Common Stock shall be entitled upon exercise of
such right or warrant by virtue of the capital stock which could be acquired
upon such exercise and multiplied again by the Discount Fraction and (iii)
such additional distributions upon liquidation, dissolution or winding up of
the Company as equal the Liquidation Multiple in effect immediately prior to
such event multiplied, first, by the additional amount which the holder of a
share of Common Stock shall be entitled to receive upon liquidation,
dissolution or winding up of the Company upon exercise of such right or
warrant by virtue of the capital stock which could be acquired upon such
exercise and multiplied again by the Discount Fraction. For purposes of this
paragraph, the "Discount Fraction" shall be a fraction the numerator of which
shall be the difference between the Fair Market Value of a share of the
capital stock subject to a right or warrant distributed to holders of shares
of Common Stock of the Company as contemplated by this
13
<PAGE>
paragraph immediately after the distribution thereof and the purchase price
per share for such share of capital stock pursuant to such right or warrant
and the denominator of which shall be the Fair Market Value of a share of such
capital stock immediately after the distribution of such right or warrant.
(D) For purposes of this Certificate of Designations, the "Fair
Market Value" of a share of capital stock of the Company (including a share
of Common Stock) on any date shall be deemed to be the average of the daily
closing price per share thereof over the 30 consecutive Trading Days (as such
term is hereinafter defined) immediately prior to such date; provided,
however, that, in the event that such Fair Market Value of any such share of
capital stock is determined during a period which includes any date that is
within 30 Trading Days after (i) the ex-dividend date for a dividend or
distribution on stock payable in shares of such stock or securities
convertible into shares of such stock, or (ii) the effective date of any
subdivision, split, combination, consolidation, reverse stock split or
reclassification of such stock, then, and in each such case, the Fair Market
Value shall be appropriately adjusted by the Board of Directors of the
Company to take into account exdividend or post-effective date trading. The
closing price for any day shall be the last sale price, regular way, or, in
case, no such sale takes place on such day, the average of the closing bid
and asked prices, regular way (in either case, as reported in the applicable
transaction reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange), or, if the shares are not listed or
admitted to trading on the New York Stock Exchange, as reported in the
applicable transaction reporting system with respect to securities listed on
the principal national securities exchange on which the shares are listed or
admitted to trading or, if the shares are not
14
<PAGE>
listed or admitted to trading on any national securities exchange, the last
quoted price or, if not so quoted, the average of the high bid and low asked
prices in the over-the-counter market, as reported by the National Association
of Securities Dealers, Inc. Automated Quotation System ("NASDAQ") or such
other system then in use, or if on any such date the shares are not quoted by
any such organization, the average of the closing bid and asked prices as
furnished by a professional market maker making a market in the shares
selected by the Board of Directors of the Company. The term "Trading Day"
shall mean a day on which the principal national securities exchange on which
the shares are listed or admitted to trading is open for the transaction of
business or, if the shares are not listed or admitted to trading on any
national securities exchange, on which the New York Stock Exchange or such
other national securities exchange as may be selected by the Board of
Directors of the Company is open. If the shares are not publicly held or not
so listed or traded on any day within the period of 30 Trading Days applicable
to the determination of Fair Market Value thereof as aforesaid, "Fair Market
Value" shall mean the fair market value thereof per share as determined in
good faith by the Board of Directors of the Company. In either case referred
to in the foregoing sentence, the determination of Fair Market Value shall be
described in a statement filed with the Secretary of the Company.
Section 8. Consolidation, Merger, etc. In case the Company shall
enter into any consolidation, merger, combination or other transaction in
which the shares of Common Stock are exchanged for or changed into other
stock or securities, cash and/or any other property, then in any such case
each outstanding share of Series A Preferred Stock shall at the same time be
similarly exchanged for or changed into the aggregate amount of stock,
15
<PAGE>
securities, cash and/or other property (payable in like kind), as the case may
be, for which or into which each share of Common Stock is changed or exchanged
multiplied by the highest of the Vote Multiple, the Dividend Multiple or the
Liquidation Multiple in effect immediately prior to such event.
Section 9. Effective Time of Adjustments. (A) Adjustments to the
Series A Preferred Stock required by the provisions hereof shall be effective
as of the time at which the event requiring such adjustments occurs.
(B) The Company shall give prompt written notice to each holder of a
share of Series A Preferred Stock of the effect of any adjustment to the
voting rights, dividend rights or rights upon liquidation, dissolution or
winding up of the Company of such shares required by the provisions hereof.
Notwithstanding the foregoing sentence, the failure of the Company to give
such notice shall not affect the validity of or the force or effect of or the
requirement for such adjustment.
Section 10. No Redemption. The shares of Series A Preferred Stock
shall not be redeemable at the option of the Company or any holder thereof.
Notwithstanding the foregoing sentence of this Section, the Company may
acquire shares of Series A Preferred Stock in any other manner permitted by
law, the provisions hereof and the Certificate of Incorporation of the
Company.
Section 11. Ranking. Unless otherwise provided in the Certificate of
Incorporation of the Company or a Certificate of Designations relating to a
subsequent series of preferred stock of the Company, the Series A Preferred
Stock shall rank junior to all other
16
<PAGE>
series of the Company's preferred stock as to the payment of dividends and the
distribution of assets on liquidation, dissolution or winding up and senior to
the Common Stock.
Section 12. Amendment. The provisions hereof and the Certificate of
Incorporation of the Company shall not be amended in any manner which would
adversely affect the rights, privileges or powers of the Series A Preferred
Stock without, in addition to any other vote of stockholders required by law,
the affirmative vote of the holders of two-thirds or more of the outstanding
shares of Series A Preferred Stock, voting together as a single class.
17
<PAGE>
IN WITNESS WHEREOF, I have executed and subscribed this Amended and
Restated Certificate of Designations and do affirm the foregoing as true
under the penalties of perjury this ______ day of March, 1998.
------------------------------------
- ----------------- James F. Dannhauser
Chief Financial Officer
