EXHIBIT 10.1
STOCK PURCHASE
AGREEMENT
THIS AGREEMENT (the
“Agreement”) is made and entered into as of the
sixteenth day of April, 2007 between AFFINITY GROUP, INC., a
Delaware corporation (the “Seller”) and FREEDOMROADS
HOLDING COMPANY, LLC, a Minnesota limited liability company (the
“Purchaser”).
WITNESSETH
:
WHEREAS, Purchaser and Camping
World, Inc., a Kentucky corporation (together with its
subsidiaries, “CW”) are parties to a joint venture
agreement dated March 6, 2006 (the “JV”);
WHEREAS, Purchaser is desirous of
purchasing and acquiring from the Seller all of the issued and
outstanding capital stock (the “Shares”) of
CW;
WHEREAS, Seller and CW have entered
into a cooperative resources agreement dated as of January 1, 2005
(the “Cooperation Agreement”);
WHEREAS, Seller is willing to sell
and deliver the Shares to the Purchaser subject to the
contingencies set forth in Section 2.4 hereof;
WHEREAS, Seller and Purchaser are
affiliated parties, each being indirectly controlled by Stephen
Adams.
NOW, THEREFORE, the parties agree as
follows:
ARTICLE
1
DEFINITIONS
Capitalized terms used in this
Agreement are used as defined in this Article I or elsewhere in
this Agreement.
The term “Affiliate”
means, with respect to any entity, a person or entity directly or
indirectly, controlling, controlled by or under common control
with, such entity.
The term “AGI Senior
Lenders” means the lenders under the AGI Senior Loan
Agreement.
The term “AGI Senior Loan
Agreement” means the agreements, documents and instruments
evidencing the Seller’s senior secured credit
facility.
The term “Appraisal
Condition” is defined in Section 2.3.
1
The term “Closing” is
defined in Section 2.3.
The term “Closing Date”
is defined in Section 2.3.
The term “Cooperation
Agreement” is defined in the recitals.
The term “CW” is defined
in the recitals.
The term “Damages” means
any and all obligations, liabilities, damages, penalties,
deficiencies, losses, investigations, proceedings, judgments,
costs, and expenses (including, but not limited to, costs and
expenses incurred in connection with the performing obligations,
interest, bonding and court costs and the attorneys’ fees and
disbursements) in each case, after the application of any and all
amounts covered under insurance, contracts or similar arrangements
and from third parties by the person or entity claiming indemnity
hereunder and after taking into account the contributing acts or
omissions to the event giving arise to any claim for indemnity
hereunder and after taking into account the contributing acts or
omissions to the event giving arise to any claim for indemnity
hereunder directly or indirectly after the Closing of the person or
entity claiming indemnity hereunder, which acts or omissions give
rise to any liabilities by such person or entity.
The term “Independent
Financial Advisor” means an accounting, appraisal or
investment banking firm of nationally recognized standing that is,
in the good faith judgment of the board of directors of the Seller,
qualified to perform the task such firm has been engaged and
disinterested and independent with respect to the Company and its
Affiliates.
The term “Inter-Company
Debt” is defined in Section 2.2.
The term “JV” is defined
in the recitals.
The term “Legal
Requirements” means any and all currently applicable (i)
federal, state and local laws (statutory, judicial or otherwise),
ordinances and regulations as currently interpreted by relevant
regulatory authorities, (ii) judgments, order or decrees of any
federal, state or local court, arbitrator or administrative or
governmental authority, bureau or agency, and (iii)
contracts, agreements, franchises, understandings or other
arrangements with any federal, state or local court, arbitrator or
administrative or governmental authority, bureau or agency relating
to compliance with the matters described in (i) and (ii)
above.
The term “Liens” means
liens, mortgages, charges, security interests or any other
encumbrances (including without limitation adverse claims) or other
restrictions or limitations of any kind whatsoever and all
applicable statutes and regulations.
The term “Note” means a
promissory note of the Purchaser substantially in the form of
Exhibit A hereto.
The term “Purchase
Price” is defined in Section 2.2.
The term “Shares” is
defined in the recitals.
2
ARTICLE
II
PURCHASE AND
SALE OF THE SHARES
2.1
Purchase and Sale of
Shares . At the
Closing, the Seller agrees to sell, transfer and deliver to the
Purchaser, and the Purchaser agrees to purchase, acquire and accept
the Shares from the Seller.
2.2
Purchase Price
. The consideration to be paid
to the Seller for the Shares (the “Purchase Price”)
shall be $175,800,000, increased or decreased, as the case may be,
dollar for dollar, by increases or decreases from and after April
1, 2007 to the Date of Closing in the net inter-company
indebtedness of CW to the Seller (such net inter-company
indebtedness having been $150,393,000 on March 31, 2007 and the
amount thereof outstanding on the Closing Date being herein
referred to as the “Inter-Company Debt”). The
Purchase Price shall be paid on the Closing Date by assumption and
discharge on the Closing Date of the Inter-Company Debt (such
discharge to be 75% in immediately available funds and 25% by
delivery of the Note) and the balance as follows: 75% thereof
in immediately available funds and 25% thereof by delivery of the
Note.
2.3
The Closing
. The Closing of the
transactions provided for in this Agreement (the
“Closing’) shall occur at the offices of the Purchaser
at 10:00 a.m. on such date as is designated by the Purchaser within
60 days of the date hereof (the “Closing Date”), but
not prior to the satisfaction of the condition precedent set forth
in Section 2.4(a) (the “Appraisal
Condition”). The Seller agrees to promptly engage
an Independent Financial Advisor with a view to satisfying the
Appraisal Condition and, upon satisfaction thereof, Seller shall
give notice thereof to the Purchaser. If the Appraisal
Condition is not satisfied within 45 days of the date hereof,
either Purchaser or Seller may, at its option by giving written
notice thereof to the other, terminate this Agreement, whereupon
neither party shall have any further obligation hereunder to the
other. At the Closing, the Seller shall deliver the Shares duly
endorsed for transfer to the Purchaser. Each of the Buyer and
the Seller agree to execute and