<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. )*
RMS TITANIC, INC.
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock, $.0001 par value
- --------------------------------------------------------------------------------
(Title of Class of Securities)
0007496121
- --------------------------------------------------------------------------------
(CUSIP Number)
George Tulloch
President, RMS Titanic, Inc.
17 Battery Place
New York, New York 10004
(212) 558-6300
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
August 22, 1997
- --------------------------------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement of Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13-1(b)(3) or (4), check the following box / /.
Check the following box if a fee is being paid with the statement /x/. (A fee is
not required only if the reporting person: (1) has a previous statement on filed
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13-1(a) for other parties to whom copies are to be
sent.
* The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE> 2
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 2 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TITANIC VENTURES LIMITED PARTNERSHIP
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CONNECTICUT
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 4,582,167
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
4,582,167
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
4,582,167
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting beneficial
ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
27.5%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 3
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 3 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
GEORGE TULLOCH
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e)
/ /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 5,865,588
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
82,309
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
4,582,167
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
5,865,558
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
35.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 4
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 4 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ALLAN H. CARLIN
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 500,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
500,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
500,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting beneficial
ownership is the Voting Agreement and 197,500 shares registered in the
name of the Reporting Person's spouse.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.0%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 5
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 5 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ARNIE GELLER
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 1,650,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
1,650,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,650,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting beneficial
ownership is the Voting Agreement and excludes 300,000 shares over
which the Reporting Person has been granted voting rights pursuant to a
revocable proxy.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 6
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 6 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
G. MICHAEL HARRIS
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 165,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
165,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
165,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 7
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 7 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
KURT HOTHORN
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,544
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,544
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 8
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 8 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
CHERYL HOTHORN
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 0
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
0
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,544
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,544
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 9
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 9 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
WESTGATE ENTERTAINMENT CORP.
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
CALIFORNIA
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 603,759
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
603,759
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
603,759
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.6%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 10
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 10 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
DIANE CARLIN
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 197,500
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
197,500
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
197,500
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting beneficial
ownership is the Voting Agreement and 500,000 shares which are the
subject of a currently exercisable option granted to the Reporting
Person's spouse.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.2%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 11
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 11 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
ANNE A. HILL
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 250,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
250,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
250,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.5%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 12
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 12 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
SHIRLEY HILL
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 25,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
25,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
25,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 13
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 13 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
JAMES A. HILL
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 25,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
25,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
25,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.1%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 14
SCHEDULE 13D
CUSIP No. 0007496121 PAGE 14 OF 22 PAGES
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
D. MICHAEL HARRIS
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) /X/
(b) / /
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
00
- --------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) OR 2(e) / /
- --------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
UNITED STATES
- --------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES 165,000
BENEFICIALLY -----------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING 9,468,391
PERSON -----------------------------------------------------
9 SOLE DISPOSITIVE POWER
165,000
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
0
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
165,000
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* /x/
Excludes shares for which the only basis for asserting
beneficial ownership is the Voting Agreement.
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE> 15
SCHEDULE 13D
ITEM 1. SECURITY AND ISSUER.
This Schedule 13D filing relates to the common stock of RMS
Titanic, Inc. (the "Issuer"). The principal executive office of the Issuer are
located at 17 Battery Place, New York, New York 10004.
ITEM 2. IDENTITY AND BACKGROUND.
This statement is being filed on behalf of the following
persons who are collectively referred to as the "Reporting Persons."
The parties comprising the Reporting Persons are filing this
Statement jointly as they may be deemed to be a "group" within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, solely as a
result of the Voting Agreement described in Item 4 below. A joint filing
agreement among the Reporting Persons is attached hereto as Exhibit 7.1.
Titanic Ventures Limited Partnership ("TVLP") is a limited
partnership organized under the laws of the State of Connecticut, and is the
predecessor to the Issuer. TVLP does not have any active business operations.
The principal office of TVLP is located at 204 Old Post Road, Southport,
Connecticut 06490.
George Tulloch is the President and a director of the Issuer,
and is the only executive officer and only shareholder of Oceanic Research and
Exploration Limited ("ORE"), the general partner of TVLP. The principal business
and office of Mr. Tulloch and of ORE is located at 17 Battery Place, New York,
New York 10004, Mr. Tulloch is a citizen of the United States.
Allan H. Carlin is an attorney admitted to practice in the
State of New York and serves as general counsel for the Issuer. The principal
business and office of Mr. Carlin is located at 17 Battery Place, New York, New
York 10004. Mr. Carlin is a citizen of the United States, and is the spouse of
Diane Carlin, who is also a Reporting Person.
Arnie Geller is a self-employed corporate consultant. From May
1993 to May 1995, Mr. Geller served as President and a director of the Issuer.
The principal business and office of Mr. Geller is located at 2660 Peachtree
Road, Atlanta, 30305. Mr. Geller is a citizen of the United States.
G. Michael Harris is a promoter and agent of entertainment
programs and events. The principal business and office of Mr. Harris is located
at 2840 West bay Drive, Suite 231, BelleAir Bluffs, Florida 33770. Mr. Harris is
a citizen of the United States, and is the son of D. Michael Harris, who is also
a Reporting Person.
Kurt Hothorn trades securities for his own account and is a
limited partner of TVLP. The principal business and office of Mr. Hothorn is
located at 160 Mead Avenue, Greenwich, Connecticut 06830. Mr. Hothorn is a
citizen of the United States, and is the spouse of Cheryl Hothorn, who is also a
Reporting Person.
Cheryl Hothorn is a travel agent for Carlson Wagonlit Travel
and is a limited partner of TVLP. The principal business and office of Ms.
Hothorn is located at 60 Greenwich Avenue, Greenwich, Connecticut 06830. Ms.
Hothorn is a citizen of the United States, and is the spouse of Kurt Hothorn,
who is also a Reporting Person.
Westgate Entertainment Corp. ("Westgate") is a corporation
organized under the laws of the State of California which is engaged in the
production of programs for television. John A. Joslyn, whose principal business
is the production of programs for television, is the sole officer and sole
shareholder of Westgate. The principal business and office of Westgate and Mr.
Joslyn is located at 4405 Riverside Drive, Suite 104, Burbank, California 91505.
15
<PAGE> 16
Anne A. Hill is a self-employed business consultant. The
principal business and office of Ms. Hill is located at 2221 Peachtree Road,
Suite D167, Atlanta, Georgia 30309. Ms. Hill is a citizen of the United States,
and is the sister-in-law of Shirley A. Hill and James A. Hill, who are also
Reporting Persons.
Diane Carlin is a teacher at William Woodward, Jr. Nursery
School. The principal business and office of Ms. Carlin is 436 East 69th Street,
New York, New York 10022. Ms. Carlin is a citizen of the United States, and is
the spouse of Allan H. Carlin, who is also a Reporting Person.
Shirley A. Hill is the sole owner and President of Julie's
Shoppe, Inc., a women's apparel business. The principal business and office of
Ms. Hill is located at 310 East Main Street, Swainsboro, Georgia 30401. Ms. Hill
is a citizen of the United States, and is the mother-in-law of Anne A. Hill and
the mother of James A. Hill, who are also Reporting Persons.
James A. Hill is an independent minister. The principal
business and office of Mr. Hill is located at 2625 Piedmont Road, No. 56300,
Atlanta, GA 30324. Mr. Hill is a citizen of the United States, and is the
brother-in-law of Anne A. Hill and the son of Shirley A. Hill, who are also
Reporting Persons.
D. Michael Harris is a promoter of events. The principal
business and office of Mr. Harris is located at 2411 Carolina Avenue, Tampa,
Florida 33629. Mr. Harris is a citizen of the United States, and is the father
of G. Michael Harris, who is also a Reporting Person.
Pursuant to written consents executed by a majority of
shareholders of the Issuer in lieu of an annual meeting, Messrs. Tulloch,
Carlin, Geller, G. Michael Harris and Hothorn have been elected directors of the
Issuer, which election will become effective twenty (20) days after distribution
of an Information Statement in accordance with the provisions of the Securities
Act of 1934, as amended.
During the last five years, none of the foregoing Reporting
Persons or the executive officers, directors or controlling shareholders of ORE
and Westgate, respectively, (i) has been convicted in a criminal proceedings
(excluding traffic violations or similar misdemeanors), or (ii) has been a party
to a civil proceeding and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
The Reporting Persons are filing this statement of Schedule
13D as a result of their entrance into the Voting Agreement attached hereto as
Exhibit 7.2 and not as a result of any acquisition of Common Stock by the
Reporting Persons.
ITEM 4. PURPOSE OF TRANSACTION.
Pursuant to a Voting Agreement dated August 22, 1997 among the
Reporting Persons (the "Voting Agreement"), each of the Reporting Persons has
agreed, until August 31, 1999, to vote all their shares of Common Stock of the
Issuer in favor of the election of George Tulloch, Allan H. Carlin, Arnie
Geller, G. Michael Harris and Kurt Hothorn as directors of the Issuer. The
Voting Agreement places certain restrictions on the Reporting Persons' right to
transfer shares of Common Stock subject to the Voting Agreement, and requires
that such shares be offered for sale to Messrs. Tulloch, Carlin, Geller, G.
Michael Harris and Hothorn prior to the sale thereof in the open market. The
purpose of the Voting Agreement is to assure the service of a qualified and
competent Board of Directors of the Issuer.
16
<PAGE> 17
The description of the Voting Agreement is not necessarily
complete, and reference is made to the copy of the Voting Agreement, which is
attached as Exhibit 7.2 hereto.
At the present time none of the persons identified in response
to Item 2 of this Statement has any plans or proposals which relate to or would
result in any of the following, except as discussed above in Item 2 and in this
Item 4:
(1) An extraordinary corporate transaction, such as a merger,
reorganization or liquidation, involving the Issuer or any of its subsidiaries;
(2) Sale or transfer of a material amount of assets of the
Issuer or any of its subsidiaries;
(3) Any change in the present board of directors or management
of the Issuer, including any plans or proposals to change the number or term of
directors or to fill any existing vacancies on the board;
(4) Any material change in the present capitalization or
dividend policy of the Issuer;
(5) Any other material change in the Issuer's business or
corporate structure;
(6) Changes in the Issuer's charter, bylaws or instruments
corresponding thereto or other corporate actions which may impede the
acquisition of control of the Company by any person;
(7) Causing the Issuer's Common Stock to cease to be
authorized to be quoted in an inter-dealer quotation system of a registered
national securities association;
(8) A class of equity securities of the Issuer becoming
eligible for termination of registration pursuant to Section 12(g)(4) of the
Securities Exchange Act of 1934, as amended; or
(9) Any action similar to any of those enumerated above.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
The following table sets forth the beneficial ownership of
shares of the Issuer's Common Stock by (a) each Reporting Person and (b) each
person for whom information has been required to be provided pursuant to General
Instruction C of Schedule 13D who beneficially owns Common Stock. The table
below includes shares that may be acquired upon exercise of options that are
currently exercisable or exercisable within 60 days. As of August 31, 1997,
there were 16,192,119 shares of the Issuer's Common Stock outstanding. In the
aggregate, the Reporting Persons beneficially own 9,468,391 shares (including
shares obtainable upon exercise of options or warrants that are exercisable
within 60 days). These shares represent approximately 56% of the Common Stock of
the Issuer (including for purposes of this calculation options or warrants held
by the Reporting Persons and exercisable within 60 days). Except for shared
rights to vote pursuant to the Voting Agreement and as otherwise noted, each
person has sole voting and dispositive control over the shares identified below.
Each Reporting Person disclaims beneficially ownership of those shares for which
the only basis for asserting beneficial ownership is the Voting Agreement.
17
<PAGE> 18
<TABLE>
<CAPTION>
Aggregate Number of
Name Shares
- ------------------------------------- --------------------------------
<S> <C>
Titanic Ventures Limited Partnership 4,582,167 (1)
George Tulloch 1,283,421 (2)
Allan H. Carlin 500,000 (3)
Arnie Geller 1,650,000 (4)
G. Michael Harris 165,000
Kurt Hothorn and Cheryl Hothorn 21,544 (5)
Westgate Entertainment Corp. 603,759
Diane Carlin 197,500 (6)
Anne A. Hill 250,000 (7)
Shirley A. Hill 25,000 (7)
James A. Hill 25,000 (7)
D. Michael Harris 165,000
</TABLE>
(1) George Tulloch is the President and sole shareholder of Oceanic
Research and Exploration Limited ("ORE"), a Delaware corporation which serves as
the General Partner of Titanic Ventures Limited Partnership ("TVLP"). The
General Partner of TVLP has the right to vote the shares of the Issuer without
the consent of the Limited Partners of TVLP, and may dispose of the shares of
the Issuer, subject to a right of purchase by the limited partners of TVLP. By
letter agreement dated June 12, 1996 Mr. Tulloch had previously agreed, subject
to the fulfillment of certain conditions, to distribute eighty (80%) percent of
each limited partner's interest in the shares of the Issuer owned by TVLP,
subject to the execution of proxies by the limited partners granting to the
General Partner voting power over such shares until May 31, 1997, with such
proxies to terminate upon the public market sale of such shares. Mr. Tulloch and
the General Partner believe that such letter agreement is not enforceable on the
basis of a number of grounds, including but not limited to fraudulent
inducement, repudiation and the absence of consideration, and accordingly will
not distribute shares of the Issuer owned by TVLP to the limited partners of
TVLP in accordance with the terms thereof. Mr. Gasparrini claims that such June
12, 1996 letter agreement is valid and enforceable, and has also claimed that a
certain document dated April 21, 1995, pursuant to which Mr. Tulloch allegedly
agreed to distribute each limited partner's interest in the shares of the Issuer
owned by TVLP and immediately granted each limited partner the right to vote the
shares of the Issuer's Common Stock owned by TVLP in proportion to their
partnership interests, is enforceable. Mr. Gasparrini has threatened to commence
legal proceedings against Mr. Tulloch and ORE in order to enforce his rights
under the June 12, 1996 letter agreement and the purported April 21, 1995
agreement. Mr. Tulloch denies that he or ORE entered into any such April 21,
1995 agreement or that such alleged agreement was or is valid, and intends to
vigorously defend any actions that may be instituted by Mr. Gasparrini with
respect to the June 12, 1996 letter agreement or the purported April 21, 1995
agreement.
(2) Includes 1,202,122 shares of Common Stock distributed to TVLP
limited partners, as to which Mr. Tulloch retains voting control pursuant to
written proxies until June 17, 1999, but as to which he exercises no dispositive
powers. Such written proxies are subject to termination upon the public market
sale of
18
<PAGE> 19
such shares. Does not include shares of the Issuer owned by TVLP over which Mr.
Tulloch, in his capacity as President of the sole general partner of TVLP,
exercises voting power and dispositive power. See footnote (1) above.
(3) Represents options which are presently exercisable. Does not
include 197,500 shares of Common Stock registered in the name of Mr. Carlin's
spouse, who is also a Reporting Person, as to which Mr. Carlin disclaims
beneficial ownership.
(4) Does not include revokable proxies granted to Mr. Geller by Anne A.
Hill, Shirley Hill and James A. Hill, all of whom are Reporting Persons, to vote
their shares.
(5) Voting power with respect to such shares has been granted to George
Tulloch until June 17, 1999 pursuant to written proxy, which proxy is subject to
termination upon the public market sale of such shares. See footnote (2) above.
Except as set forth above, Mr. and Mrs. Hothorn jointly share voting power and
dispositive power over such shares.
(6) Does not include 500,000 options granted to Ms. Carlin's spouse,
who is also a Reporting Person, as to which Ms. Carlin disclaims beneficial
ownership. See footnote (3) above.
(7) Voting power with respect to such shares has been granted to Arnie
Geller pursuant to revokable proxies. See footnote (4) above.
On July 3, 1997, ORE distributed to certain limited partners of
TVLP an aggregate of 1,202,112 shares of the Issuer, representing their
respective interests in shares of the Issuer that had been registered in the
name of TVLP (less a total of 87,388 shares which have been retained from their
interests for the payment of their pro-rata share of TVLP's expenses), which
shares are subject to a written proxy granting George Tulloch the right to vote
such shares until June 17, 1999, with such proxies to terminate upon the public
market sale of such shares. See footnote (2) to above table. The Reporting
Persons have not effected any other transaction in the Issuer's Common Stock
within the last sixty days.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
There are no contracts, arrangements, understandings or
relationships between the Reporting Persons and any other person with respect to
the securities of the Issuer, other than as set forth in the Voting Agreement
and the Addendums annexed thereto, Item 5 above, and a transaction pursuant to
which G. Michael Harris, one of the Reporting Persons, agreed to loan to TVLP
the sum of up to $200,000 pursuant to an agreement dated July 30, 1997, with
any loans made pursuant thereto to have a term of 18 months and to bear
interest at the rate of 8% per annum. All loans pursuant to such agreement are
secured by a lien and security interest in 400,762 shares of the Issuer's
Common Stock. Pursuant to such agreement, it was agreed that the general
partner of TVLP would not be changed and ORE would not be removed as general
partner of TVLP without the lender's written consent. As of the date of this
filing, the sum of $65,000 has been loaned to TVLP pursuant to such agreement.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Incorporated by reference or filed as exhibits hereto are the
following:
7.1 Agreement relating to the filing of joint acquisition
statements as required by Rule 13d-1(f)(1) of the
Securities Exchange Commission.
7.2 Voting Agreement among Reporting Persons dated August 22,
1997.
19
<PAGE> 20
SIGNATURES
After reasonable inquiry and to the best of our knowledge and
belief, the undersigned certify that the information set forth in this Statement
on Schedule 13D is true, complete and correct.
Dated: September 2, 1997
TITANIC VENTURES LIMITED PARTNERSHIP
By:Oceanic Research and Exploration Ltd.
By: /s/ George Tulloch
------------------------------------
George Tulloch, President
/s/ George Tulloch
---------------------------------------
George Tulloch
/s/ Allan H. Carlin
---------------------------------------
Allan H. Carlin
/s/ Arnie Geller
---------------------------------------
Arnie Geller
/s/ G. Michael Harris
---------------------------------------
G. Michael Harris
/s/ Kurt Hothorn
---------------------------------------
Kurt Hothorn
/s/ Cheryl Hothorn
---------------------------------------
Cheryl Hothorn
Westgate Entertainment Corp.
By: /s/ John A. Joslyn
------------------------------------
John A. Joslyn, President
/s/ Diane Carlin
---------------------------------------
Diane Carlin
/s/ Anne A. Hill
---------------------------------------
Anne A. Hill
20
<PAGE> 21
/s/ Shirley A. Hill
------------------------------
Shirley A. Hill
/s/ James A. Hill
------------------------------
James A. Hill
/s/ D. Michael Harris
------------------------------
D. Michael Harris
21
<PAGE> 22
EXHIBIT INDEX
7.1 Agreement relating to the filing of joint acquisition
statements as required by Rule 13d-1(f)(1) of the
Securities Exchange Commission.
7.2 Voting Agreement among Reporting Persons dated August 22,
1997.
22
<PAGE> 1
AGREEMENT OF JOINT FILING
The undersigned acknowledge and agree that the foregoing
statement on Schedule 13D is filed on behalf of each of the undersigned and that
all subsequent amendments to this statement on Schedule 13D shall be filed on
behalf of each of the undersigned without the necessity of filing additional
joint acquisition statements. The undersigned acknowledge that each shall be
responsible for the timely filing of such amendments, and for the completeness
and accuracy of the information concerning it contained herein, but shall not be
responsible for the completeness and accuracy concerning the other, except to
the extent that it knows or has reason to believe that such information is
inaccurate.
Dated: September 2, 1997
TITANIC VENTURES LIMITED PARTNERSHIP
By: Oceanic Research and Exploration Ltd.
By: /s/ George Tulloch
---------------------------------
George Tulloch, President
/s/ George Tulloch
---------------------------------
George Tulloch
/s/ Allan H. Carlin
---------------------------------
Allan H. Carlin
/s/ Arnie Geller
---------------------------------
Arnie Geller
/s/ G. Michael Harris
---------------------------------
G. Michael Harris
/s/ Kurt Hothorn
---------------------------------
Kurt Hothorn
/s/ Cheryl Hothorn
---------------------------------
Cheryl Hothorn
Westgate Entertainment Corp.
By: /s/ John A. Joslyn
---------------------------------
John A. Joslyn, President
/s/ Diane Carlin
---------------------------------
Diane Carlin
<PAGE> 2
/s/ Anne A. Hill
- --------------------------------
Anne A. Hill
/s/ Shirley A. Hill
- --------------------------------
Shirley A. Hill
/s/ James A. Hill
- --------------------------------
James A. Hill
/s/ D. Michael Harris
- --------------------------------
D. Michael Harris
2
<PAGE> 1
VOTING AGREEMENT
This Agreement made this 22nd day of August, 1997 by and
between Allan Carlin, 239 East 79th Street, New York, New York 10021; Arnie
Geller, 2660 Peachtree Rd., NW, Apt. 27G, Atlanta, Georgia 30305; G. Michael
Harris, 2840 West Bay Drive, Suite 231, Bellaire Bluffs, Florida 33770; George
Tulloch, 402 Riverside Drive, Fairfield, Connecticut 06430; and Kurt Hothorn,
160 Mead Avenue, Greenwich, Connecticut 06830 (hereinafter collectively referred
to as the "Parties").
WHEREAS, the Parties hereto, and other shareholders (the
"Shareholders") of RMS Titanic, Inc., a Florida corporation with its principal
place of business located at 17 Battery Place, New York, New York 10004 (the
"Company") who are signatories to Addendum 1 attached hereto, agree to vote
their shares of the Common Stock that they each own and/or control (the"Shares)
in favor of the election of each of the Parties as directors of the Company.
WHEREAS, the Parties and Shareholders are of a singular mind
regarding the need for increasing shareholder value and assuring the service of
a qualified and competent Board of Directors, and therefore agree to the
following:
NOW, in consideration of the foregoing premises and the mutual
promises herein contained, ten dollars ($10.00) and other good and valuable
consideration, it is agreed as follows:
1. The Parties and Shareholders each agree, so long as they
own and/or control Shares reflected on Addendum 1 annexed hereto, to vote such
Shares in favor of the election of each of the Parties as directors of the
Company.
2. The Parties and Shareholders each agree, so long as they
own and/or control Shares, that they will not sell, barter, loan, give or
otherwise assign their proxy to vote their Shares in any way to any third party
unless a majority of the Parties give their written consent thereto.
3. The Parties and Shareholders each agree not to sell their
Shares without first offering them to the Parties at a price equal to the
average of the high bid and low offer (as quoted in the over-the-counter market
by the OTC Bulletin Board, or NASDAQ) on the date such offer is made. Such offer
shall be made by fax directed to the fax numbers on Addendum 2 attached hereto
(the "Offer"), and shall include the address of the place to which payment for
the Shares shall be delivered. Any Party who accepts the Offer shall send
written confirmation (the "Notice of Purchase") to all Parties and/or to the
selling Shareholder via fax within seventy-two (72) hours of receipt of the
Offer (the "Offer Period"). In the event that the Offer is oversubscribed, the
Shares that are the subject of the Offer shall be allocated among the Purchasers
in proportion to the amount of Shares they each offered to purchase. Each
Purchaser shall deliver payment for the purchase of the Shares to the selling
shareholder within five (5) business days of issuance of the Notice to Purchase.
Any portion of the Shares that are the subject of the Offer for which a Notice
of Purchase has not been received may be sold by the selling shareholder only in
the open public trading market through a broker's transaction for a period
<PAGE> 2
of fourteen (14) calendar days immediately following the end of the Offer Period
("Public Market Sale"). Shares sold in a Public Market Sale shall not be subject
to any of the terms or conditions of this Agreement. Any Shares which are the
subject of a Notice of Offer shall not be sold in a Public Market Sale, or
otherwise sold, transferred or assigned, after the conclusion of such fourteen
(14) day period without first offering such Shares to the Parties in accordance
with the provisions of this paragraph. Each Party and Shareholder shall have the
right to change his fax number by notifying the other Parties of such change in
writing via fax. Any Party or Shareholder who ceases to have a fax number shall
notify the other Parties of his mailing address to which such notices shall be
sent.
4. Any Shares acquired by a Party or a Shareholder after the
dated hereof will be subject to this Agreement as if they were owned or
controlled at the time of execution of this Agreement. Each Party and
Shareholder shall give notice via fax to all Parties and Shareholders of their
acquisition of Shares after the date hereof, specifying the date of acquisition,
the number of shares acquired, and the amount paid for the acquisition of the
Shares. Such notice shall be delivered within ten (10) calendar days of the date
of the acquisition of the Shares.
5. This Agreement shall not apply to any Shares registered in
the name of Titanic Ventures Limited Partnership as are subject to distribution
to partners of TVLP, other than to George Tulloch or other TVLP partners who are
signatories hereto; provided, however, that so long as George Tulloch, directly
or indirectly, has voting control over such Shares prior to the distribution
thereof to the TVLP partners, he shall vote such Shares in accordance with
paragraph 1 above.
6. Notwithstanding any contrary provision of law, in the event
that any Party or Shareholder utilizes any Shares as collateral or security for
a loan, or to otherwise encumber or hypothecate any Shares, any sale of the
Shares to a third party upon foreclosure of such interest shall be subject to
all the provisions of paragraphs 2 and 3 hereof, including but not limited to,
the rights of the Party or Shareholder to vote the Shares until their sale in
compliance with the provisions of paragraph 3 hereof. Any third party who
forecloses upon any security in the Shares shall not be entitled to acquire or
otherwise own the Shares, but shall only be entitled to offer the Shares for
sale to the Parties in accordance with paragraph 3, and to the public in the
event that the Parties do not exercise their rights under paragraph 3.
7. This Agreement shall be effective and remain in force
between the parties from the date hereof to and including August 31, 1999.
8. The Parties and Shareholders each agree that an appropriate
legend shall be endorsed upon the certificates evidencing their ownership of
Shares reflecting that the sale, transfer, encumbrance, hypothecation or other
assignment of the Shares is subject to the terms and provisions of this
Agreement.
9. This Agreement shall be binding on the parties and their
respective representatives, heirs, successors and assigns, and shall be governed
by and construed in
2
<PAGE> 3
accordance with the laws of the State of New York, without giving effect to the
conflict of laws principles thereof.
10. This Agreement embodies and constitutes the entire
understanding between the parties with respect to the subject matter hereof, and
all prior understandings, representations and statements, if any, whether oral
or written, are merged into this Agreement. Neither this Agreement nor any
provision hereof may be waived, modified, amended, discharged or terminated
except by an instrument signed by the party against whom the enforcement of such
waiver, modification, amendment, discharge of termination is sought, and then
only to the extent set forth in such instrument.
11. In the event that any term, condition, covenant,
agreement, requirement or provision herein contained shall be held by any court
to be unenforceable, illegal, void or contrary to public policy, such term,
condition, covenant, agreement, requirement or provision shall be of no effect
whatsoever upon the binding force or effectiveness of any of the other terms
hereof, it being the intention and declaration of the parties hereto that had
they or any of them known of such unenforceability, illegality, invalidity or
contrariety to public policy, they would have entered into a contract, each with
the other, containing all of the other terms, conditions, covenants, agreements,
requirements and provisions hereof.
12. This Agreement may be executed in counterparts, each of
which when executed by the parties hereto shall be deemed an original and all of
which together shall be deemed the same Agreement.
/s/ Allan H. Carlin /s/ Arnie Geller
- ----------------------------------- ----------------------------------
Allan H. Carlin Arnie Geller
/s/ G. Michael Harris /s/ Kurt Hothorn
- ----------------------------------- ----------------------------------
G. Michael Harris Kurt Hothorn
/s/ George Tulloch
- -----------------------------------
George Tulloch
3
<PAGE> 4
ADDENDUM 1
I hereby agree to be bound to the terms and provisions of the foregoing
Agreement by and among Allan H. Carlin, Arnie Geller, G. Michael Harris, Kurt
Hothorn and George Tulloch with respect to the rights to sell, vote or otherwise
transfer control over shares of RMS Titanic, Inc. ("RMST") Common Stock.
/s/ Diane Carlin
- ------------------------------------------------------------
Diane Carlin, owner of 197,500 shares of
RMST Common Stock
/s/ D. Michael Harris
- ------------------------------------------------------------
D. Michael Harris, owner of 165,000 shares of
RMST Common Stock
/s/ Westgate Entertainment Corp.
- ------------------------------------------------------------
Westgate Entertainment Corp., owner of 603,759
shares of RMST Common Stock, by John Joslyn,
its President
/s/ Cheryl Hothorn
- ------------------------------------------------------------
Cheryl Hothorn, as joint owner with Kurt Hothorn,
of 21,544 shares of RMST Common Stock.
/s/ Anne A. Hill
- ------------------------------------------------------------
Anne A. Hill, owner of 250,000 shares of RMST
Common Stock (as to which Arnie Geller has been
granted voting rights pursuant to proxy)
/s/ Shirley A. Hill
- ------------------------------------------------------------
Shirley A. Hill, owner of 25,000 shares of RMST
Common Stock (as to which Arnie Geller has been
granted voting rights pursuant to proxy)
4
<PAGE> 5
ADDENDUM 1 (CONTINUED)
/s/ James A. Hill
- -------------------------------------------------------------
James A. Hill, owner of 25,000 shares of RMST
Common Stock (as to which Arnie Geller has been
granted voting rights pursuant to proxy)
George Tulloch hereby acknowledges that he is the direct owner of 81,309 shares
of RMST, the indirect owner of 4,582,167 shares of RMST that are registered in
the name of TVLP (and which are subject to distribution to TVLP limited
partners, of which he will retain ownership of a maximum of 511,152 shares of
the Company owned by TVLP (as may be decreased for payment of TVLP's
liabilities), and has voting control over, but not right to control the sale of,
1,202,112 RMST shares until June 17, 1999 by virtue of proxies granted to him by
limited partners of TVLP (which voting power is subject to earlier termination
upon the public market sale of such shares.
/s/ George Tulloch
---------------------------------------
George Tulloch
Arnie Geller hereby acknowledges that he is the owner of 1,650,000 shares of
RMST, and has voting control over, but not the right to control the sale of, an
additional 300,000 shares of RMST by virtue of proxies granted to him by the
following third parties: Anne A. Hill - 250,000 shares; Shirley A. Hill - 25,000
shares; and James A. Hill - 25,000 shares.
/s/ Arnie Geller
---------------------------------------
Arnie Geller
G. Michael Harris hereby acknowledges that he is the owner of 165,000 shares of
RMST.
/s/ G. Michael Harris
---------------------------------------
G. Michael Harris
5
<PAGE> 6
ADDENDUM 1 (CONTINUED)
Kurt Hothorn hereby acknowledges that he is the joint owner with Cheryl Hothorn
of 21,544 shares of RMST.
/s/ Kurt Hothorn
-------------------------------------
Kurt Hothorn
Allan H. Carlin hereby acknowledges that he owns no shares of RMST.
/s/ Allan H. Carlin
-------------------------------------
Allan H. Carlin
6
<PAGE> 7
ADDENDUM 2
Allan H. Carlin - (212) 482-1912
Arnie Geller - (770) 541-0720
G. Michael Harris - (813) 585-6078
Kurt Hothorn - (203) 531-4657
George Tulloch - (212) 482-1912
Diane Carlin - (212) 482-1912
D. Michael Harris -
Westgate Entertainment Corp. - (818) 238-0016
7
