-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cr7sqSdj2QMPb3gNMGqe59ML+ej6JbU1lg9B3jPN6NEhqtYWuRZWPc7mfdUqOEvD JiqtVI6smnnh69C2Vyg6Hg== 0000950130-96-001106.txt : 19960402 0000950130-96-001106.hdr.sgml : 19960402 ACCESSION NUMBER: 0000950130-96-001106 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 19960401 SROS: NONE GROUP MEMBERS: FORUM HOLDINGS L P GROUP MEMBERS: FORUM HOLDINGS, L.P. GROUP MEMBERS: HAMPSTEAD ASSOCIATES, INC. GROUP MEMBERS: HH GENPAR PARTNERS GROUP MEMBERS: HRP MANAGEMENT II, LTD. GROUP MEMBERS: INCAP, INC. GROUP MEMBERS: RAW GENPAR, INC. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: FORUM GROUP INC CENTRAL INDEX KEY: 0000033939 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-SOCIAL SERVICES [8300] IRS NUMBER: 610703072 STATE OF INCORPORATION: IN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-30915 FILM NUMBER: 96542869 BUSINESS ADDRESS: STREET 1: 8900 KEYSTONE CROSSING STE 200 STREET 2: P O BOX 40498 CITY: INDIANAPOLIS STATE: IN ZIP: 46240-0498 BUSINESS PHONE: 3178460700 MAIL ADDRESS: STREET 1: 8900 KEYSTONE CROSSING STE 200 STREET 2: PO BOX 40498 CITY: INDIANAPOLIS STATE: IN ZIP: 46240-0498 FORMER COMPANY: FORMER CONFORMED NAME: EXCEPTICON INC DATE OF NAME CHANGE: 19810909 FORMER COMPANY: FORMER CONFORMED NAME: GUARDIAN CARE CORP DATE OF NAME CHANGE: 19720615 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: FORUM HOLDINGS L P CENTRAL INDEX KEY: 0000913324 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 4200 TEXAS COMMERCE TOWER WEST STREET 2: 2200 ROSS AVENUE CITY: DALLAS STATE: TX ZIP: 75201 BUSINESS PHONE: 2142204900 SC 13D/A 1 SCHEDULE 13D AMENDMENT NO. 14 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D (Amendment No. 14) Under the Securities Exchange Act of 1934 Forum Group, Inc. ----------------- (Name of Issuer) Common Stock, Without Par Value ------------------------------- (Title of Class of Securities) 349841304 -------------- (CUSIP Number) Forum Holdings, L.P. 4200 Texas Commerce Tower West 2200 Ross Ave. Dallas, Texas 75201 Attention: Robert A. Whitman (214) 220-4900 -------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) With a copy to: Robert A. Profusek, Esq. Jones, Day, Reavis & Pogue 599 Lexington Avenue New York, New York (212) 326-3939 March 25, 1996 ----------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ]. Check the following box if a fee is being paid with this statement [ ]. Page 1 of 17 Index to Exhibits on Page 13 SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 2 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Forum Holdings, L.P. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* WC - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------------------- NUMBERS OF SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH REPORTING -------------------------------------------------------------------- PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [12] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 3 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON HRP Management II, Ltd. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- ---------------------------------------------------------------------- NUMBERS OF SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH REPORTING -------------------------------------------------------------------- PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 4 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON HH Genpar Partners - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- NUMBERS OF -------------------------------------------------------------------- SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH ---------------------------------------------------------------------- REPORTING PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* PN ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 5 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON Hampstead Associates, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- NUMBERS OF -------------------------------------------------------------------- SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH ---------------------------------------------------------------------- REPORTING PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 6 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON RAW Genpar, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- NUMBERS OF -------------------------------------------------------------------- SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH ---------------------------------------------------------------------- REPORTING PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! SCHEDULE 13D ================================================================================ CUSIP NO. 349841304 PAGE 7 OF 17 PAGES ------------ ---- ---- ================================================================================ 1 NAME OF REPORTING PERSON S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON InCap, Inc. - -------------------------------------------------------------------------------- 2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP a [_] b [X] - -------------------------------------------------------------------------------- 3 SEC USE ONLY - -------------------------------------------------------------------------------- 4 SOURCE OF FUNDS* OO - -------------------------------------------------------------------------------- 5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) or (e) [_] - -------------------------------------------------------------------------------- 6 CITIZENSHIP OR PLACE OF ORGANIZATION Texas - -------------------------------------------------------------------------------- 7 SOLE VOTING POWER -0- NUMBERS OF -------------------------------------------------------------------- SHARES BENEFICIALLY 8 SHARED VOTING POWER OWNED BY -0- EACH ---------------------------------------------------------------------- REPORTING PERSON WITH 9 SOLE DISPOSITIVE POWER -0- ---------------------------------------------------------------------- 10 SHARED DISPOSITIVE POWER -0- - -------------------------------------------------------------------------------- 11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON -0- - -------------------------------------------------------------------------------- 12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES* [X] - -------------------------------------------------------------------------------- 13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) 0.0% - -------------------------------------------------------------------------------- 14 TYPE OF REPORTING PERSON* CO ================================================================================ *SEE INSTRUCTIONS BEFORE FILLING OUT! This Amendment No. 14 amends and supplements the Statement on Schedule 13D filed on February 11, 1993 (as heretofore amended and supplemented, the "Schedule 13D"), by Forum Holdings, L.P., a Texas limited partnership, and Investors Genpar, Inc., a Delaware corporation. Capitalized terms used herein which are not otherwise defined herein are so used with the respective meanings ascribed to them in the Schedule 13D. Item 4. Purpose of Transaction. ---------------------- Item 4 is hereby amended by adding the following paragraphs following the last paragraph thereof: On February 15, 1996, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Marriott International, Inc., a Delaware corporation ("Parent"), and FG Acquisition Corp., an Indiana Corporation ("Purchaser"). In connection with the execution and delivery of the Merger Agreement, Forum Holdings entered into an Agreement and Irrevocable Proxy, dated as of February 15, 1996 (as amended, the "Holdings/Marriott Agreement"), with Parent, Purchaser and the Company and an amendment thereto dated as of March 21, 1996 (the "Holdings/Marriott Amendment"). Pursuant to the Merger Agreement, on February 23, 1996 the Purchaser commenced a tender offer ("Offer") to purchase all of the outstanding shares of Common Stock at a purchase price of $13.00 per share, net to the seller in cash without interest thereon. Pursuant to the Offer and the Holdings/Marriott Agreement, (i) Forum Holdings sold to Purchaser (a) all of the 9,075,251 outstanding shares of Common Stock previously beneficially owned by Forum Holdings (b) all of the Warrants and Special Warrants previously beneficially owned by Forum Holdings and (ii) and the Investor Warrants were cancelled. The foregoing response to this Item 4 is qualified in its entirety by reference to the Merger Agreement, the Holdings/Marriott Agreement and the Holdings/Marriott Amendment, the full texts of which are filed as Exhibits 18, 19 and 20, respectively, hereto and incorporated herein by this reference. Item 5. Interest in Securities of the Issuer. ------------------------------------ Item 5 is hereby amended and restated in its entirety as follows: The responses to Items 3, 4 and 6 are incorporated herein by this reference. As a result of the purchase of shares of Common Stock pursuant to the Offer and the consummation of the other transactions contemplated by the Holdings/Marriott -8- Agreement, as of March 25, 1996 Forum Holdings ceased to beneficially own any shares of Common Stock. Item 6. Contracts, Arrangements, Understandings or Relationships -------------------------------------------------------- With Respect to Securities of the Issuer. ---------------------------------------- The responses to Items 4 and 5 are incorporated herein by this reference. Item 7. Material to be Filed as Exhibits. -------------------------------- Exhibit 18 - Merger Agreement (incorporated by reference to Exhibit 1 to the Solicitation/Recommendation Statement on Schedule 14D-9 filed on behalf of the Company with the Securities and Exchange Commission on February 23, 1996) Exhibit 19 - Holdings/Marriott Agreement (incorporated by reference to Exhibit 10 to the Solicitation/Recommendation Statement on Schedule 14D-9 filed on behalf of the Company with the Securities and Exchange Commission on February 23, 1996) Exhibit 20 - Holdings/Marriott Amendment -9- SIGNATURES After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with HRP Management II, Ltd., HH Genpar Partners, Hampstead Associates, Inc., RAW Genpar, Inc. and InCap, Inc. Dated: April 1, 1996. FORUM HOLDINGS, L.P. By: /s/ Troy B. Lewis ----------------------- Troy B. Lewis, Attorney-in-Fact/*/ After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with Forum Holdings, L.P., HH Genpar Partners, Hampstead Associates, Inc., RAW Genpar, Inc. and InCap, Inc. Dated: April 1, 1996. HRP MANAGEMENT II, LTD. By: /s/ Troy B. Lewis ---------------------- Troy B. Lewis, Attorney-in-Fact/**/ - -------------------- /*/ Pursuant to a Power of Attorney executed on behalf of Forum Holdings, L.P. and filed previously as Exhibit 12 hereto. /**/ Pursuant to a Power of Attorney executed on behalf of HRP Management II, Ltd. and filed previously as Exhibit 12 hereto. -10- After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with Forum Holdings, L.P., HRP Management II, Ltd., Hampstead Associates, Inc., RAW Genpar, Inc. and InCap, Inc. Dated: April 1, 1996. HH GENPAR PARTNERS By: /s/ Troy B. Lewis ----------------- Troy B. Lewis, Attorney-in-Fact/*/ After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with Forum Holdings, L.P., HRP Management II, Ltd., HH Genpar Partners, RAW Genpar, Inc. and InCap, Inc. Dated: April 1, 1996. HAMPSTEAD ASSOCIATES, INC. By: /s/ Troy B. Lewis ----------------- Troy B. Lewis, Attorney-in-Fact/**/ - -------------------- /*/ Pursuant to a Power of Attorney executed on behalf of HH Genpar Partners and filed previously as Exhibit 12 hereto. /**/ Pursuant to a Power of Attorney executed on behalf of Hampstead Associates, Inc. and filed previously as Exhibit 12 hereto. -11- After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with Forum Holdings, L.P., HRP Management II, Ltd., HH Genpar Partners, Hampstead Associates, Inc. and InCap, Inc. Dated: April 1, 1996. RAW GENPAR, INC. By: /s/ Troy B. Lewis ----------------- Troy B. Lewis, Attorney-in-Fact/*/ After reasonable inquiry and to the best of its knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct and agrees that this statement may be filed collectively with Forum Holdings, L.P., HRP Management II, Ltd., HH Genpar Partners, Hampstead Associates, Inc. and RAW Genpar, Inc. Dated: April 1, 1996. INCAP, INC. By: /s/ Troy B. Lewis ------------------ Troy B. Lewis, Attorney-in-Fact/**/ - -------------------- /*/ Pursuant to a Power of Attorney executed on behalf of RAW Genpar, Inc. and filed previously as Exhibit 12 hereto. /**/ Pursuant to a Power of Attorney executed on behalf of InCap, Inc. and filed previously as Exhibit 12 hereto. -12- INDEX TO EXHIBITS -----------------
Exhibit Description - --------- -------------------------------- 18 Merger Agreement (incorporated by reference to Exhibit 1 to the Solicitation/Recommendation Statement on Schedule 14D-9 filed on behalf of the Company with the Securities and Exchange Commission on February 23, 1996) 19 Holdings/Marriott Agreement (incorporated by reference to Exhibit 10 to the Solicitation/Recommendation Statement on Schedule 14D-9 filed on behalf of the Company with the Securities and Exchange Commission on February 23, 1996) 20 Holdings/Marriott Amendment
-13- EX-99.20 2 FIRST AMENDMENT TO AGREEMENT & IRREVOCABLE PROXY EXHIBIT 20 FIRST AMENDMENT TO AGREEMENT AND IRREVOCABLE PROXY THIS FIRST AMENDMENT TO AGREEMENT AND IRREVOCABLE PROXY (this "AMENDMENT") dated as of March 21, 1996 by and among MARRIOTT INTERNATIONAL, INC., a Delaware corporation ("PARENT"), FG ACQUISITION CORP., an Indiana corporation and a subsidiary of Parent ("PURCHASER"), FORUM HOLDINGS, L.P., a Texas limited partnership ("SHAREHOLDER"), and FORUM GROUP, INC., an Indiana corporation (the "COMPANY"), amends the Agreement and Irrevocable Proxy dated as of February 15, 1996 (the "ORIGINAL AGREEMENT"; the Original Agreement, as amended by this Amendment, the "AGREEMENT") by and among Parent, Purchaser, Shareholder and the Company. W I T N E S S E T H: ------------------- WHEREAS, pursuant to the Original Agreement, Shareholder agreed to exercise the Citicorp Warrants (as defined in the Original Agreement) it holds and to tender the Citicorp Warrant Shares (as defined in the Original Agreement) acquired upon such exercise into the Offer (as defined in the Original Agreement); and WHEREAS, Shareholder now wishes to sell the Citicorp Warrants to Purchaser and Purchaser is willing to buy the Citicorp Warrants for an aggregate purchase price of $3,455,553.26 (the "CITICORP WARRANT PURCHASE PRICE"), which is equal to the difference between the aggregate price that would have been paid for the Citicorp Warrant Shares pursuant to the Offer and the aggregate exercise price of such Citicorp Warrants. NOW, THEREFORE, in consideration of the foregoing and the mutual premises, covenants and agreements contained herein, the parties hereto, intending to be legally bound hereby, agree as follows: 1. Capitalized terms used and not defined herein have the respective meanings ascribed to them in the Original Agreement. 2. Section 2(b) of the Original Agreement is hereby deleted in its entirety and replaced with the following paragraphs: "(b) (i) Prior to the expiration of the Offer, Shareholder shall deliver the Citicorp Warrants to Purchaser pending the acquisition of such Citicorp Warrants by Purchaser for the Citicorp Warrant Purchase Price, as set forth in clause (ii) of this Section 2(b). "(ii) Promptly after First Chicago Trust Company of New York, as Depositary for the Offer, has issued payment in exchange for all of the Company Common Stock tendered in the Offer, Purchaser shall acquire the Citicorp Warrants by paying the Citicorp Warrant Purchase Price to Shareholder by wire transfer, provided that instructions for such wire transfer shall have -------- been delivered by Shareholder to Purchaser." 3. Section 2(c) of the Original Agreement is hereby deleted in its entirety and replaced with the following paragraph: "(c) Prior to the expiration of the Offer, Shareholder shall deliver the Investor Warrants to Purchaser to be held in escrow pending the consummation of the Offer. The Company and Shareholder agree that, notwithstanding any provision of the Investor Warrants or the Acquisition Agreement to the contrary, upon expiration of the Offer and without any further action whatsoever, the Investor Warrants held by Shareholder shall be deemed cancelled and extinguished, for no additional consideration whatsoever. The Company shall mark the Investor Warrants cancelled upon receipt thereof. Prior to the expiration of the Offer, Shareholder will neither transfer nor exercise any Investor Warrants for any reason whatsoever." 4. The following paragraph shall be added as Section 2(e) of the Agreement: "(e) Upon payment of the Citicorp Warrant Purchase Price pursuant to Section 2(b)(ii), the Company shall cause the transfer of the Citicorp Warrants from Shareholder to Purchaser to be recorded on the record books of the Company." 5. Miscellaneous. ------------- (a) The Agreement, as amended hereby, constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof. (b) All costs and expenses incurred in connection with this Amendment and the transactions contemplated hereby shall be paid by the party incurring such expenses, and each of Parent and Purchaser, on the one hand, and Shareholder, on the other hand, shall indemnify and hold the other harmless from and against any and all claims, liabilities or obligations with respect to any brokerage fees, commissions or finders' fees asserted by any person on the basis of any act or statement alleged to have been made by such party or its Affiliates. (c) This Amendment shall be governed and construed in accordance with the Laws of the State of Delaware (regardless of the Laws that might otherwise govern under applicable principles of conflict of laws) as to all matters, including matters of validity, construction, effect, performance and remedies. 2 (d) The descriptive headings used herein are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Amendment. (e) This Amendment may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same instrument. 3 IN WITNESS WHEREOF, Parent, Purchaser, Shareholder and the Company have caused this Amendment to be duly executed as of the day and year first above written. MARRIOTT INTERNATIONAL, INC. By: /s/ Joseph Ryan ---------------------------------- Name: Joseph Ryan Title: Executive Vice President FG ACQUISITION CORP. By: /s/ Edward L. Bednarz --------------------------------- Name: Edward L. Bednarz Title: Vice President FORUM HOLDINGS, L.P. By: HRP Management, Ltd., Its General Partner By: HH Genpar Partners, Its General Partner By: Hampstead Associates, Inc., Its Managing General Partner By: /s/ Richard M. FitzPatrick -------------------------- Name: Richard M. FitzPatrick Title: Vice President FORUM GROUP, INC. By: /s/ Mark Pacala ---------------------------------- Name: Mark Pacala Title: Chairman and Chief Executive Officer S-1 -----END PRIVACY-ENHANCED MESSAGE-----