WAIVER AND AGREEMENT
WAIVER AND AGREEMENT dated as of June 14, 2001 (this "Waiver") with
respect to the Amended, Restated and Consolidated Credit Agreement dated as of
October 12, 1999 (as amended, the "Credit Agreement") by and among American
Skiing Company ("American Skiing") and the other borrowers party thereto
(collectively, the "Borrowers"), the lenders party thereto (the "Lenders") and
Fleet National Bank, N.A. (formerly known as BankBoston, N.A.), as agent (the
"Agent").
W I T N E S S E T H:
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WHEREAS, pursuant to the Credit Agreement, the Lenders have made Loans
and other financial accommodations to the Borrowers which remain outstanding;
WHEREAS, certain Events of Default may have occurred and may be
continuing; and
WHEREAS, the Borrowers have requested that the Agent and the Lenders
waive such possible Events of Default and defer the payment of the Deferred
Default Spread (as defined below), in each case, during the Waiver Period (as
defined below), and the Agent and the Lenders are willing to do so, but only on
the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1. Defined Terms. Unless otherwise defined herein,
capitalized terms used herein have the meanings assigned in the Credit Agreement
and the following terms shall have the following meanings:
"Deferred Default Spread": the spread between (a) the contractual rate
of interest due on the Loans pursuant to Sections 2.3, 2.5 and 2.19 of the
Credit Agreement, as modified by Section 4.1(b) of the Waiver and Agreement
dated as of May 15, 2001 and (b) the default rate of interest due on the Loans
accruing upon the occurrence and during the continuance of an Event of Default
pursuant to Section 2.7 of the Credit Agreement.
"Effective Date": (i) November 1, 2000 with respect to the Swap Event
of Default and (ii) April 29, 2001 with respect to the Specified Events of
Default (other than the Swap Event of Default).
"Expiration Date": June 28, 2001.
"Specified Events of Default": Events of Default arising or which may
arise in respect of Section 10.1(b) of the Credit Agreement as a result of
the Borrowers' failure to comply with Sections 7.1, 7.2, 7.3, 7.5 and 8.15
of the Credit Agreement.
"Swap Event of Default": Events of Default arising or which may arise
in respect of Section 10.1(b) of the Credit Agreement as a result of the
Borrowers' failure to comply with Section 8.15 of the Credit Agreement.
"Termination Date": the occurrence of an event of termination as
provided in Article III of this Waiver.
"Waiver Period": the period beginning on the Effective Date and ending
on the earlier of (a) the Termination Date or (b) the Expiration Date.
ARTICLE II
WAIVER AND DEFERRAL
Section 2.1. Waiver. Subject to the terms and conditions hereof, the
Agent and the Lenders hereby agree to waive during the Waiver Period the
Specified Events of Default.
Section 2.2. Deferral. The Agent and the Lenders hereby agree to defer
payment by the Borrowers of the Deferred Default Spread during the Waiver
Period; provided, that the Deferred Default Spread shall be paid in full in cash
immediately upon the earlier of the Termination Date or the Expiration Date; it
being understood that during the Waiver Period the Borrowers shall continue to
pay the contractual rate of interest due on the Loans pursuant to Sections 2.3,
2.5 and 2.19 of the Credit Agreement.
ARTICLE III
WAIVER EVENTS OF TERMINATION
Upon the occurrence of any of the following events:
(a) the Borrowers shall default in the observance or performance of
any agreement or covenant contained in this Waiver;
(b) the occurrence of a Default or Event of Default (other than a
Specified Event of Default);
then, and in any such event, the provisions of Article II of this Waiver shall
immediately and automatically terminate and thereafter such Article II shall
have no force or effect.
ARTICLE IV
AGREEMENTS
Section 4.1. Agreements. The Borrowers hereby confirm, reaffirm and
restate as of the date hereof its agreements contained in Article IV of the
Waiver and Agreement dated as of May 15, 2001; it being understood that all
references in said Article IV to "Waiver Period" shall be deemed to mean "Waiver
Period" as defined in this Waiver.
Section 4.2. Agreements Deemed Agreements under the Credit Agreement.
For purposes of the Credit Agreement, the agreements of the Borrowers contained
in this Article IV shall be deemed to be, and shall be, agreements under the
Credit Agreement.
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ARTICLE V
WAIVER EFFECTIVE DATE
Section 5.1 Effective Date. This Waiver shall become effective as of
the date hereof upon receipt by the Agent of (a) counterparts of this Waiver,
duly executed and delivered by the Borrowers, the Agent and the Lenders and (b)
payment in full in cash of the invoiced and unpaid fees and expenses of the
Agent's professionals as of June 1, 2001 and as set forth on the Schedule of
Fees attached hereto.
ARTICLE VI
INTERPRETATION
Section 6.1. Continuing Effect of the Credit Agreement. The Borrowers,
the Agent and each Lender hereby acknowledges and agrees that the Credit
Agreement shall continue to be and shall remain unchanged and in full force and
effect in accordance with its terms, except as expressly modified hereby.
Section 6.2. No Waiver. Nothing contained in this Waiver shall be
construed or interpreted or is intended as a waiver of any Default or Event of
Default (other than the Specified Events of Default) or of any rights, powers,
privileges or remedies that the Agent or the Lenders have or may have under the
Credit Agreement, any other related document or applicable law on account of
such Default or Event of Default (other than the Specified Events of Default).
The Borrowers hereby acknowledge and agree that, at the end of the Waiver
Period, the provisions of Article II of this Waiver shall become of no force and
effect and the Agent and the Lenders shall be free, in accordance with the
Credit Agreement, to exercise and enforce, or to take steps to exercise and
enforce, all rights, powers, privileges and remedies available to them under the
Credit Agreement, any related document or applicable law on account of the
Specified Events of Default (or any other Default or Event of Default) as if
this Waiver had not been entered into by the parties hereto.
ARTICLE VII
MISCELLANEOUS
Section 7.1. Representations and Warranties. The Borrowers hereby
represent and warrant as of the date hereof that, after giving effect to this
Waiver, (a) no Default or Event of Default has occurred and is continuing,
except the Specified Events of Default, and (b) all representations and
warranties of the Borrowers contained in the Credit Agreement are true and
correct in all material respects with the same effect as if made on and as of
such date, except that Section 5.22(a) of the Credit Agreement shall be deemed
to exclude any Specified Event of Default.
Section 7.2. Payment of Fees and Expenses. (a) The Borrowers hereby
agree to pay or reimburse the Agent on demand for all its reasonable
out-of-pocket costs and expenses incurred in connection with the preparation and
execution of this Waiver, including, without limitation, the reasonable fees and
disbursements of counsel to the Agent. In furtherance of the provisions of this
Section 7.2 and Section 14.5 of the Credit Agreement, the Borrowers hereby agree
that the Agent shall be entitled, upon one Business Day's notice to the
Borrowers, to debit any operating account of any Borrower to collect costs and
expenses to which the Agent is entitled pursuant to this Section 7.2 and Section
14.5 of the Credit Agreement.
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(b) The Borrowers further agree to pay to the Agent, for its own
account, on the first Business Day of each month, an agency fee in the amount of
$10,000. This monthly payment shall be in lieu of the annual agency fee
otherwise due under the Credit Agreement.
Section 7.3. Counterparts. This Waiver may be executed by the parties
hereto in any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
Section 7.4. GOVERNING LAW. THIS WAIVER AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES UNDER THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS.
Section 7.5. Reservation of Rights. Notwithstanding anything contained
in this Waiver, the Borrowers acknowledge that the Agent and the Lenders do not
waive, and expressly reserve, the right to exercise, at any time, any and all of
their rights and remedies under the Credit Agreement, any other related document
and applicable law on account of any Default or Event of Default (other than
Specified Events of Default).
Section 7.6. Confirmation of Indebtedness. The Borrowers hereby
confirm and acknowledge that, as of the Effective Date, (i) the Borrowers are
truly and justly indebted to the Lenders, without defense, counterclaim or
offset of any kind and (ii) the Borrowers are liable to the Lenders in respect
of Loans and Letters of Credit in the aggregate principal amount of
$127,540,079.10.
Section 7.7. Waiver. The Borrowers hereby release, waive, and forever
relinquish all claims, demands, obligations, liabilities and causes of action of
whatever kind or nature, whether known or unknown, which any of them have, may
have, or might assert at the time of execution of this Waiver or in the future
against the Agent, the Lenders and/or their respective parents, affiliates,
participants, officers, directors, employees, agents, attorneys, accountants,
consultants, successors and assigns (collectively, the "Lender Group"), directly
or indirectly, which occurred, existed, was taken, permitted or begun prior to
the execution of this Waiver, arising out of, based upon, or in any manner
connected with (i) any transaction, event, circumstance, action, failure to act
or occurrence of any sort or type, whether known or unknown, with respect to the
Credit Agreement, any other Lender Agreement and/or the administration thereof
or the obligations created thereby; (ii) any discussions, commitments,
negotiations, conversations or communications with respect to the refinancing,
restructuring or collection of any obligations related to the Credit Agreement,
any other Lender Agreement and/or the administration thereof or the obligations
created thereby, or (iii) any matter related to the foregoing; provided,
however, that the provisions of this Section 7.7 shall not apply to any such
matters of which the Borrowers are presently unaware and which constitute or
result from the gross negligence and/or willful misconduct of any member of the
Lender Group.
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IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be
duly executed and delivered by their proper and duly authorized officers as of
the date first above written.
AMERICAN SKIING COMPANY
By: /s/ Mark J. Miller
Title: CFO
SUNDAY RIVER SKIWAY CORPORATION
By: /s/ Mark J. Miller
Title: CFO
SUNDAY RIVER LTD.
By: /s/ Mark J. Miller
Title: CFO
PERFECT TURN, INC.
By: /s/ Mark J. Miller
Title: CFO
SUNDAY RIVER TRANSPORTATION INC.
By: /s/ Mark J. Miller
Title: CFO
L.B.O. HOLDING, INC.
By: /s/ Mark J. Miller
Title: CFO
SUGARBUSH RESORT HOLDINGS, INC.
By: /s/ Mark J. Miller
Title: CFO
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SUGARBUSH LEASING COMPANY
By: /s/ Mark J. Miller
Title: CFO
SUGARBUSH RESTAURANTS, INC.
By: /s/ Mark J. Miller
Title: CFO
MOUNTAIN WASTEWATER TREATMENT, INC.
By: /s/ Mark J. Miller
Title: CFO
S-K-I, LTD.
By: /s/ Mark J. Miller
Title: CFO
KILLINGTON, LTD.
By: /s/ Mark J. Miller
Title: CFO
MOUNT SNOW LTD.
By: /s/ Mark J. Miller
Title: CFO
PICO SKI AREA MANAGEMENT COMPANY
By: /s/ Mark J. Miller
Title: CFO
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RESORT SOFTWARE SERVICES, INC.
By: /s/ Mark J. Miller
Title: CFO
KILLINGTON RESTAURANTS, INC.
By: /s/ Mark J. Miller
Title: CFO
DOVER RESTAURANTS, INC.
By: /s/ Mark J. Miller
Title: CFO
SUGARLOAF MOUNTAIN CORPORATION
By: /s/ Mark J. Miller
Title: CFO
MOUNTAINSIDE
By: /s/ Mark J. Miller
Title: CFO
ASC UTAH
By: /s/ Mark J. Miller
Title: CFO
STEAMBOAT SKI & RESORT CORPORATION
By: /s/ Mark J. Miller
Title: CFO
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HEAVENLY SKI & RESORT CORPORATION
By: /s/ Mark J. Miller
Title: CFO
HEAVENLY CORPORATION
By: /s/ Mark J. Miller
Title: CFO
HEAVENLY VALLEY, LIMITED PARTNERSHIP
By: Heavenly Corporation, its general
partner
By: /s/ Mark J. Miller
Title: CFO
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FLEET NATIONAL BANK (successor in interest
to BankBoston, N.A.), as Agent
By: /s/ Daniel Butler
Title: Vice President
FLEET NATIONAL BANK (successor in interest
to BankBoston, N.A.), as a Lender
By: Daniel Butler
Title: Vice President
WELLS FARGO BANK, NATIONAL ASSOCIATION, as
a Lender
By:________________________________________
Title:
WELLS FARGO BANK, NATIONAL ASSOCIATION,
successor by merger to First Security Bank,
N.A., as a Lender
By:________________________________________
Title:
U.S. BANK NATIONAL ASSOCIATION, as a Lender
By: /s/ illegible
Title:
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THE HOWARD BANK, N.A., as a Lender
By: /s/ illegible
Title:
BLACK DIAMOND CLO 1998-1 LTD., as a Lender
By: /s/ Derrie Boggess
Title: Director
BLACK DIAMOND CLO 2000-1 LTD., as a Lender
By: /s/ David Dyer
Title: Director
BLACK DIAMOND INTERNATIONAL FUNDING, LTD.,
as a Lender
By: /s/ David Dyer
Title: Director
By: /s/ Derrie Boggess
Title: Director
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MERRILL LYNCH PRIME RATE PORTFOLIO, as a
Lender
By: Merrill Lynch Asset Management, L.P.,
as Investment Advisor
By: /s/ Michael Brown
Title:
DEBT STRATEGIES FUND, INC., as a Lender
By: /s/ Michael Brown
Title:
CAPTIVA II FINANCE LTD., as a Lender
By:________________________________________
Title:
KZH-PAMCO LLC, as a Lender
By:/s/ Kimberly Rowe
Title: Authorized Agent
KZH HIGHLAND-2 LLC, as a Lender
By:/s/ Kimberly Rowe
Title: Authorized Agent
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PAM CAPITAL FUNDING L.P., as a Lender
By: Highland Capital Management, L.P., as
Collateral Manager
By: Todd Travers
Title: Senior Portfollio Manager
PAMCO CAYMAN, LTD., as a Lender
By: Highland Capital Management, L.P., as
Collateral Manager
By: /s/ Todd Travers
Title: Senior Portfolio Manager
VAN KAMPEN PRIME RATE INCOME TRUST, as a
Lender
By: Van Kampen Investment Advisory Corp.
By: /s/ Darvin D. Pierce
Title: Principal
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GLENEAGLES TRADING LLC, as a Lender
By: /s/ Ann E. Morris
Title: Assistant Vice President
SRV-HIGHLAND, INC., as a Lender
By: /s/ Ann E. Morris
Title: Assistant Vice President
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SCHEDULE OF CAPITAL EXPENDITURES
SEE ATTACHED
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SCHEDULE OF FEES
NONE
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