EXECUTION COPY
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CREDIT AGREEMENT
AMONG
RADIO ONE, INC.,
AS THE BORROWER
THE SEVERAL LENDERS FROM TIME
TO TIME PARTIES HERETO
NATIONSBANK, N.A.,
AS DOCUMENTATION AGENT
AND
CREDIT SUISSE FIRST BOSTON,
AS THE AGENT
DATED EFFECTIVE AS OF JUNE 30, 1998
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TABLE OF CONTENTS
Page
SECTION 1. CERTAIN DEFINITIONS AND TERMS......................................1
1.1 Defined Terms......................................................1
1.2 Other Definitional Provisions.....................................32
1.3 Computation of Time Periods.......................................33
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS...................................33
2.1 Commitments.......................................................33
2.2 Intentionally Deleted.............................................33
2.3 Procedure for Borrowing...........................................33
2.4 Repayment of Loans................................................34
SECTION 3. LETTERS OF CREDIT.................................................35
3.1 L/C Commitment....................................................35
3.2 Procedure for Issuance of Letters of Credit.......................35
3.3 Fees, Commissions and Other Charges...............................35
3.4 L/C Participations................................................36
3.5 Reimbursement Obligation of the Borrower..........................37
3.6 Obligations Absolute..............................................38
3.7 Letter of Credit Payments.........................................38
3.8 Application.......................................................38
SECTION 4. GENERAL PROVISIONS APPLICABLE TO LOANSAND LETTERS OF CREDIT.......39
4.1 Interest Rates and Payment Dates..................................39
4.2 Optional and Mandatory Commitment Reductions and Prepayments......39
4.3 Commitment Fees, etc..............................................42
4.4 Computation of Interest and Fees..................................44
4.5 Conversion and Continuation Options...............................44
4.6 Minimum Amounts of Eurodollar Tranches............................45
4.7 Inability to Determine Interest Rate..............................45
4.8 Pro Rata Treatment and Payments...................................46
4.9 Requirements of Law...............................................46
4.10 Taxes.............................................................48
4.11 INDEMNITY.........................................................49
4.12 Change of Lending Office..........................................50
SECTION 5. REPRESENTATIONS AND WARRANTIES....................................50
5.1 Financial Condition...............................................50
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5.2 No Change.........................................................52
5.3 Existence; Compliance with Law....................................52
5.4 Power; Authorization; Enforceable Obligations.....................52
5.5 No Legal Bar......................................................53
5.6 No Material Litigation............................................53
5.7 No Default........................................................53
5.8 Ownership of Property; Intellectual Property......................53
5.9 No Burdensome Restrictions........................................54
5.10 Taxes.............................................................54
5.11 Federal Regulations...............................................55
5.12 ERISA.............................................................55
5.13 Investment Company Act; Other Regulations.........................55
5.14 Restricted Subsidiaries...........................................56
5.15 Insurance.........................................................57
5.16 Authorization Matters.............................................57
5.17 Environmental Matters.............................................58
5.18 Accuracy of Information...........................................59
5.19 Security Documents................................................60
5.20 Solvency..........................................................60
5.21 Labor Matters.....................................................60
5.22 Prior Names.......................................................61
5.23 Chief Executive Office; Chief Place of Business...................61
5.24 Real Property; Leases.............................................61
5.25 Ownership of Stations.............................................61
5.26 Possession of Necessary Authorizations............................62
5.27 FCC, Copyright, Patent and Trademark Matters......................62
5.28 License Subsidiaries..............................................62
SECTION 6. CONDITIONS PRECEDENT..............................................63
6.1 Conditions to Effectiveness of this Agreement.....................63
6.2 Conditions to All Extensions of Credit............................68
SECTION 7. AFFIRMATIVE COVENANTS.............................................69
7.1 Financial Statements..............................................69
7.2 Certificates; Other Information...................................70
7.3 Payment of Obligations............................................71
7.4 Conduct of Business and Maintenance of Existence, etc. ...........71
7.5 Maintenance of Property; Insurance................................71
7.6 Inspection of Property; Books and Records; Discussions............72
7.7 Notices...........................................................72
7.8 Environmental Laws................................................73
7.9 Collateral........................................................74
7.10 Use of Proceeds...................................................75
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7.11 New Restricted Subsidiaries.......................................75
7.12 Taxes.............................................................75
7.13 Further Assurances................................................76
7.14 Appraisals of Collateral..........................................76
SECTION 8. NEGATIVE COVENANTS................................................76
8.1 Financial Condition Covenants.....................................76
8.2 Limitation on Indebtedness and Preferred Stock....................78
8.3 Limitation on Liens...............................................79
8.4 Limitation on Fundamental Changes.................................80
8.5 Limitation on Sale of Assets......................................81
8.6 Limitation on Restricted Payments; Other Payment Limitations......81
8.7 Limitation on Acquisitions........................................82
8.8 Investments.......................................................83
8.9 Limitation on Transactions with Affiliates........................83
8.10 Limitation on Restrictions on Restricted Subsidiary Distributions.84
8.11 Limitation on Lines of Business...................................85
8.12 Limitation on Sale or Issuance of Equity Interests................85
8.13 Limitation on Material Agreements.................................86
8.14 Certain Intercompany Matters......................................86
8.15 Preferred Stock Documents.........................................86
SECTION 9. EVENTS OF DEFAULT.................................................87
SECTION 10. THE AGENT.........................................................91
10.1 Appointment.......................................................91
10.2 Delegation of Duties..............................................91
10.3 EXCULPATORY PROVISIONS............................................91
10.4 Reliance by the Agent.............................................92
10.5 Notice of Default.................................................92
10.6 Non-Reliance on the Agent and the Other Lenders...................92
10.7 INDEMNIFICATION...................................................93
10.8 The Agent in Its Individual Capacity..............................94
10.9 Successor Agent...................................................94
10.10 Other Agents......................................................95
SECTION 11. MISCELLANEOUS.....................................................95
11.1 Amendments and Waivers............................................95
11.2 Notices...........................................................96
11.3 No Waiver; Cumulative Remedies....................................97
11.4 Survival of Representations and Warranties........................97
11.5 Payment of Expenses and Taxes.....................................97
11.6 Successors and Assigns; Participations and Assignments............98
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11.7 Adjustments; Set-off.............................................101
11.8 Counterparts; When Effective.....................................101
11.9 Severability.....................................................102
11.10 Integration......................................................102
11.11 GOVERNING LAW....................................................102
11.12 Submission To Jurisdiction; Waivers..............................102
11.13 Acknowledgments..................................................103
11.14 WAIVERS OF JURY TRIAL............................................103
11.15 Maximum Interest Rate............................................104
11.16 Confidentiality..................................................104
11.17 Agreement of Lenders.............................................105
11.18 FINAL AGREEMENT..................................................105
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Exhibits
Exhibit A - Form of Assignment and Acceptance
Exhibit B - Form of Compliance Certificate
Exhibit C - Form of Guaranty
Exhibit D - Form of Operating Agreement
Exhibit E - Form of Perfection Certificate
Exhibit F-1 - Form of Pledge Agreement [Borrower]
Exhibit F-2 - Form of Pledge Agreement [Restricted Subsidiaries]
Exhibit F-3 - Form of Pledge Agreement [Warrantholders]
Exhibit F-4 - Form of Pledge Agreement [Management Stockholders]
Exhibit G-1 - Form of Intellectual Property Security Agreement
Exhibit G-2 - Form of Security Agreement [Borrower]
Exhibit G-3 - Form of Security Agreement [Restricted Subsidiaries]
Exhibit H - Form of Note
Exhibit I - Form of Notice of Borrowing
Exhibit J - Form of Notice of Conversion/Continuation
Exhibit K - Form of Closing Certificate
Exhibit L - Form of Legal Opinion of Xxxxxxxx & Xxxxx
Exhibit M - Form of Legal Opinion of FCC counsel
Exhibit N - Form of Standstill Agreement
Exhibit O - Form of First Amendment to Preferred Stockholders' Agreement
Exhibit P - Form of Alternative Note
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Schedules
Schedule 1.1A - Commitments and Addresses of Lenders
Schedule 1.1B - EBITDA Expense Add Backs
Schedule 5.1(c) - Pro Forma Financial Information, Budgets and Projections
Schedule 5.4 - Required Consents and Approvals
Schedule 5.14(a) - List of Restricted Subsidiaries and Owners of Equity
Interests
Schedule 5.14(b) - List of Shareholder and Voting Agreements, Warrants,
Restrictions on Transfer of Equity Interests
Schedule 5.22(a) - Prior Trade Names
Schedule 5.22(b) - Current Trade Names
Schedule 5.23 - Chief Executive Office; Chief Place of Business
Schedule 5.24(a) - List of Real Property Owned and Leased
Schedule 5.24(b) - List of Mortgaged Properties
Schedule 5.25 - Stations Owned
Schedule 5.27 - Patents and Trademarks
Schedule 8.2 - Indebtedness
Schedule 8.9 - Existing Affiliate Transactions
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT is entered into effective as of June 30, 1998 among
Radio One, Inc., a Delaware corporation (the "Borrower"), the several lenders
from time to time parties hereto (the "Lenders"), NationsBank, N.A., as a Lender
and as Documentation Agent and Credit Suisse First Boston, as a Lender and as
the Agent for the Lenders.
PRELIMINARY STATEMENT
The Borrower desires to replace the Existing Credit Agreement (hereinafter
defined) with this Agreement in order to replace and increase the commitments
under such Existing Credit Agreement with the Commitments of the Lenders under
this Agreement.
In consideration of the premises, the mutual agreements contained herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows:
SECTION 1.
CERTAIN DEFINITIONS AND TERMS
1.1 Defined Terms. For purposes of this Agreement, the following terms
shall have the following meanings:
"ABR" means the fluctuating rate of interest per annum as shall be in
effect from time to time equal to the greater of (i) the rate of interest
announced publicly by the Agent from time to time as its U.S. dollar prime
commercial lending rate (which rate may or may not be the lowest rate of
interest charged by the Agent) and (ii) the sum of 0.5% plus the Federal Funds
Rate. The ABR shall be adjusted automatically as of the opening of business on
the effective date of each change in the prime commercial lending rate or
Federal Funds Rate to account for such change.
"ABR Loan" means any Loan that bears interest computed on the basis of the
ABR.
"Acquisitions" has the meaning set forth in Section 8.7.
"Affiliate" means, with respect to any specified Person, any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control of" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with") any Person means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of
such Person, whether through the ownership of voting securities, by agreement or
otherwise; provided that beneficial ownership of 10% or more of the voting
securities of a Person shall be deemed to be control.
"Affiliate Transaction" has the meaning set forth in Section 8.9.
"Agent" means Credit Suisse First Boston, as administrative agent for the
Lenders pursuant to this Agreement, and its successors and assigns in such
capacity as appointed pursuant to Section 10.9.
"Aggregate Commitment" means the sum of all of the Commitments of all of
the Lenders (in each case, as the same may be increased, reduced or otherwise
adjusted from time to time as provided herein).
"Aggregate Outstandings of Credit" means, as to any Lender at any time, an
amount equal to the sum of (a) the aggregate principal amount of all Loans made
by such Lender then outstanding and (b) such Lender's Specified Percentage of
the L/C Obligations then outstanding.
"Agreement" means this Credit Agreement, including the Schedules and
Exhibits, as the same may be amended, modified, restated, supplemented, renewed,
extended, increased, rearranged or substituted from time to time.
"Allied" has the meaning set forth in the definition of Allied Warrant.
"Allied Note" has the meaning set forth in the definition of Allied
Warrant.
"Allied Warrant" means that certain Warrant issued by Borrower to Allied
Capital Financial Corporation ("Allied") in connection with the acquisition of
station WYCB-AM, Washington, D.C. by certain Unrestricted Subsidiaries of the
Borrower, to be exercised for the number of shares of Series A 15% Senior
Cumulative Redeemable Preferred Stock of the Borrower having a liquidation value
of up to Four Million Dollars ($4,000,000) but only to be exercised upon a
default under that certain promissory note in the original principal amount of
$3,750,000 (the "Allied Note") given by Broadcast Holdings, Inc. to Allied.
"Alternative Note" has the meaning set forth in Section 11.6(d).
"Alternative Noteholder" has the meaning set forth in Section 11.6(e).
"Amended and Restated Certificate of Incorporation" means that certain
Amended and Restated Certificate of Incorporation of Radio One, Inc. filed with
the Secretary of State of Delaware on May 16, 1997, as amended on March 10, 1998
and as further amended or restated from time to time in accordance with the
terms hereof and thereof.
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"Applicable Margin" means, at the time of any determination thereof, for
purposes of all Loans, the margin of interest over the ABR or the Eurodollar
Rate, as the case may be, which is applicable at the time of any determination
of interest rates under this Agreement, which Applicable Margin shall be subject
to adjustment (upwards or downwards, as appropriate) based on the Leverage
Ratio, as follows:
------------------------------------- ------------------- ------------------------
APPLICABLE MARGIN APPLICABLE MARGIN FOR
LEVERAGE RATIO FOR ABR LOANS EURODOLLAR RATE LOANS
------------------------------------- ------------------- ------------------------
Greater than 6.50 to 1.00 1.250% 2.250%
------------------------------------- ------------------- ------------------------
Less than or equal to 6.50 to 1.00
but greater than 6.00 to 1.00 1.000% 2.000%
------------------------------------- ------------------- ------------------------
Less than or equal to 6.00 to 1.00
but greater than 5.50 to 1.00 0.875% 1.875%
------------------------------------- ------------------- ------------------------
Less than or equal to 5.50 to 1.00
but greater than 5.00 to 1.00 0.750% 1.750%
------------------------------------- ------------------- ------------------------
Less than or equal to 5.00 to 1.00
but greater than 4.50 to 1.00 0.500% 1.500%
------------------------------------- ------------------- ------------------------
Less than or equal to 4.50 to 1.00
but greater than 4.00 to 1.00 0.250% 1.250%
------------------------------------- ------------------- ------------------------
Less than or equal to 4.00 to 1.00
but greater than 3.50 to 1.00 0.125% 1.125%
------------------------------------- ------------------- ------------------------
Less than or equal to 3.50 to 1.00 0.000% 1.000%
------------------------------------- ------------------- ------------------------
For the purposes of this definition, the Applicable Margin shall be
determined as at the end of each of the first three quarterly periods of
each fiscal year of the Borrower and as at the end of each fiscal year of
the Borrower, based on the relevant financial statements delivered pursuant
to Section 7.1(a) or (b) and the Compliance Certificate delivered pursuant
to Section 7.2(b); changes in the Applicable Margin shall become effective
on the date which is the earlier of (i) two Business Days after the date
the Agent receives such financial statements and the corresponding
Compliance Certificate and (ii) the 45th day after the end of each of the
first three quarterly periods of each fiscal year or the 90th day after the
end of each fiscal year, as the case may be, and shall remain in effect
until the next change to be effected pursuant to this definition; provided,
that (a) until the first such financial statements and Compliance
Certificate are delivered after the Effective Date, the Applicable Margin
shall be determined by reference to the Leverage Ratio set forth in the
Compliance Certificate delivered to the Agent pursuant to Section 6.2(h)
and (b) if any financial statements or the Compliance Certificate referred
to above are not delivered within the time
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periods specified above, then, for the period from and including the date
on which such financial statements and Compliance Certificate are required
to be delivered to but not including the date on which such financial
statements and Compliance Certificate are delivered, the Applicable Margin
as at the end of the fiscal period that would have been covered thereby
shall be deemed to be the Applicable Margin which would be applicable when
the Leverage Ratio is greater than 6.50 to 1.00. Notwithstanding anything
to the contrary contained herein, during the fiscal quarter in which the
Borrower closes its initial Public Equity Offering, the Borrower shall have
the right to resubmit to the Agent and each Lender a new Compliance
Certificate which recalculates the "Indebtedness" component of the Leverage
Ratio as of such date and, to the extent there is a change in the Leverage
Ratio reflected therein, a new Applicable Margin for the then occurring
fiscal quarter shall become effective two Business Days after the date the
Agent receives such new Compliance Certificate and such new Applicable
Margin shall remain in effect until the next change, to be effected
pursuant to this definition.
"Application" means an application, in form and substance consistent with
this Agreement and mutually satisfactory to the Borrower and the Issuing Lender,
requesting the Issuing Lender to open a Letter of Credit.
"Assignee" has the meaning set forth in Section 11.6(c).
"Assignment and Acceptance" means an Assignment and Acceptance
substantially in the form of Exhibit A.
"Authorizations" means all filings, recordings and registrations with, and
all validations or exemptions, approvals, orders, authorizations, consents,
Licenses, certificates and permits from, the FCC and other Governmental
Authorities.
"Available Commitment" means at any time, as to any Lender, an amount equal
to (a) the amount of such Lender's Commitment at such time, minus (b) such
Lender's Aggregate Outstandings of Credit at such time.
"Xxxx" means Xxxx Broadcasting Company, a Michigan corporation.
"Xxxx Acquisition" means the acquisition by the Borrower of all of the
outstanding Equity Interests of Xxxx pursuant to the terms and conditions of
that certain Stock Purchase Agreement by and among all of the shareholders of
Xxxx more specifically identified therein and Radio One, Inc., dated as of
December 23, 1997 (the "Xxxx Acquisition Agreement").
"Xxxx Acquisition Agreement" has the meaning set forth in the definition of
Xxxx Acquisition.
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"Xxxx Indebtedness" means (i) the Indebtedness evidenced by that certain
Business Loan Agreement, dated November 18, 1996, between Xxxx and Peoples State
Bank ("PSB"), the Commercial Promissory Note, dated of even date therewith, from
Xxxx made payable to PSB in the original principal amount of $725,000, the
Commercial Security Agreement, dated of even date therewith, from Xxxx to PSB
and the Commercial Real Estate Mortgage and Assignment of Leases and Rents,
dated December 27, 1995, modified pursuant to a Mortgage Modification Agreement,
dated November 18, 1996, (ii) the Indebtedness evidenced by that certain
Commercial Promissory Note, dated March 5, 1997, from Xxxx made payable to PSB,
in the original principal amount of $45,050 and the Commercial Security
Agreement from Xxxx to PSB, dated of even date therewith (collectively, the
"Mercedes Loan"), (iii) the Indebtedness evidenced by that certain Retail
Installment Contract, dated November 20, 1996, from Xxxx to Riverside Ford
Sales, Inc., in the amount of $15,978.96 (collectively, the "Ford Loan") and
(iv) the Indebtedness evidenced by that certain Commercial Line of Credit
Agreement, dated February 20, 1998, between Xxxx and PSB, the Commercial
Promissory Note, dated of even date therewith, from Xxxx made payable to PSB, in
the original principal amount of $600,000 and the Commercial Security Agreement,
of even date therewith, from Xxxx to PSB (collectively, the "$600,000 Loan").
"Board" means the Board of Governors of the Federal Reserve System.
"Borrower" has the meaning set forth in the introductory paragraph of this
Agreement.
"Borrowing Date" means any Business Day (i) specified in a Notice of
Borrowing pursuant to Section 2.3 as a date on which the Borrower requests the
Lenders to make Loans hereunder or (ii) specified in an Application pursuant to
Section 3.2 as a date on which the Borrower requests the Issuing Lender to issue
Letters of Credit hereunder.
"Broadcast Assets" means assets used or useful in the ownership or
operation of a Station.
"Budget" has the meaning set forth in Section 7.2(e).
"Business" has the meaning set forth in Section 5.17(c).
"Business Day" means (a) for all purposes other than as provided in clause
(b) below, any day other than a Saturday, Sunday or other day on which
commercial banks in New York, New York are authorized or required by law to
close and (b) with respect to all notices and determinations in connection with
any borrowings in respect of Eurodollar Loans, any day that is a Business Day
described in clause (a) above and that is also a day for trading between prime
banks in the London interbank market.
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"Capital Expenditure" means with respect to any Person any liability
incurred or expenditure made (net of any casualty insurance proceeds or
condemnation awards used to replace fixed assets following a casualty event or
condemnation with respect thereto) by such Person that, in conformity with GAAP,
is required to be accounted for as a capital expenditure on the cash flow
statements of such Person; provided, however, that Capital Expenditures shall
not include the consideration paid by the Borrower and/or Restricted
Subsidiaries in connection with the Xxxx Acquisition, Permitted Acquisitions and
any other Acquisitions consented to by the Majority Lenders.
"Capital Lease Obligations" means with respect to any Person, at any time
any determination thereof is to be made, the amount of the liability in respect
of a capital lease that would at such time be required to be capitalized on the
consolidated balance sheet of such Person in accordance with GAAP.
"Cash Collateral Account" has the meaning set forth in Section 4.2(d).
"Cash Equivalents" means (i) United States dollars, (ii) securities issued
or directly and fully guaranteed or insured by the United States government or
any agency or instrumentality thereof having maturities of less than one year
from the date of acquisition, (iii) certificates of deposit and Eurodollar time
deposits with maturities of less than one year from the date of acquisition,
bankers' acceptances with maturities of less than one year and overnight bank
deposits, in each case with any Lender party to the Credit Agreement or with any
domestic commercial bank having capital and surplus in excess of $500,000,000
and a Xxxxx Bank Watch Rating of "B" or better, (iv) repurchase obligations with
a term of not more than seven days for underlying securities of the types
described in clauses (ii) and (iii) entered into with any financial institution
meeting the qualifications specified in clause (iii) immediately above, (v)
commercial paper having the highest rating obtainable from Xxxxx'x Investors
Service, Inc. or Standard & Poor's Ratings Services and in each case maturing
within nine months after the date of acquisition and (vi) interests in money
market mutual funds which invest solely in assets in securities of the type
described in clauses (i) through (v) immediately above.
"Change of Control" means the occurrence of any of the following:
(i) the sale, lease or transfer, in one or a series of related
transactions, of all or substantially all of the Borrower's assets to any
Person or group (as such term is used in Section 13(d)(3) of the Exchange
Act) (other than any or all of the Principal Shareholders);
(ii) the adoption of a plan relating to the liquidation or dissolution
of the Borrower;
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(iii) prior to the initial Public Equity Offering of the Borrower and
the exercise of any of the Warrants, either (x) Xxxxxx and Xxxxxxx
(individually or collectively) cease to be the beneficial owner (within the
meaning of rule 13d-3 promulgated under the Exchange Act) of at least 51%
of the voting power of the voting stock of the Borrower or (y) any Person
or group (as such term is used in Section 13(d)(3) of the Exchange Act)
other than the Warrantholders acquires, directly or indirectly, 35% or more
of the voting power of the voting stock of the Borrower by way of merger,
consolidation or otherwise;
(iv) prior to the initial Public Equity Offering of the Borrower but
after the exercise of the Warrants, either (x) Xxxxxx and Xxxxxxx
(individually or collectively) cease to be the beneficial owner (within the
meaning of rule 13d-3 promulgated under the Exchange Act) of at least 40%
of the voting power of the voting stock of the Borrower or (y) any Person
or group (as such term is used in Section 13(d)(3) of the Exchange Act)
other than the Warrantholders acquires, directly or indirectly, 35% or more
of the voting power of the voting stock of the Borrower by way of merger,
consolidation or otherwise;
(v) following the initial Public Equity Offering of the Borrower,
either (1) any Person or group (as such term is used in Section 13(d)(3) of
the Exchange Act) (other than Xxxxxx or Xxxxxxx) acquires, directly or
indirectly, 35% or more of the voting power of the voting stock of the
Borrower by way of merger or consolidation or otherwise; (2) Xxxxxx or
Xxxxxxx cease to be the beneficial owners, individually or collectively, of
at least 35% of the voting power of the voting stock of the Borrower, (3)
the Principal Shareholders cease to be the beneficial owners, individually
or collectively, of at least 20% of the common stock of the Borrower on a
fully diluted basis or (4) Xxxxxx and Xxxxxxx (individually or
collectively) cease to have the right to elect (and do so elect) a majority
of the board of directors of the Borrower; or
(vi) the Continuing Directors cease for any reason to constitute a
majority of the directors of the Borrower then in office.
For purposes of this definition, any transfer of an Equity Interest of an entity
that was formed for the purpose of acquiring voting stock of the Borrower shall
be deemed to be a transfer of such portion of such voting stock as corresponds
to the portion of the equity of such entity that has been so transferred.
"Charter Documents" means with respect to any Person (a) the
articles/certificate of incorporation (or the equivalent organizational
documents) of such Person and (b) the bylaws (or the equivalent governing
documents) of such Person.
"Closing Certificate" has the meaning set forth in Section 6.1(b).
"Code" means the Internal Revenue Code of 1986, as amended, and all
regulations promulgated and rulings issued thereunder.
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"Collateral" means (a) all assets of the Borrower and the Restricted
Subsidiaries (other than the Equity Interests of Unrestricted Subsidiaries) ;
(b) all common stock and voting securities or securities convertible or
exchangeable into common stock or voting securities and all warrants or options
or other securities to purchase such common stock and voting securities of the
Borrower, provided that a Responsible Officer of the Borrower delivers a
certificate to and in favor of the Agent and the Lenders certifying that no
Default or Event of Default then exists and is continuing, concurrent with (i)
the closing of the initial Public Equity Offering of the Borrower, (ii) the
repurchase or redemption of the Senior Preferred Stock outstanding on the
Effective Date and (iii) the exercise of all of the Warrants (outstanding on the
Effective Date) for common stock of the Borrower pursuant to the terms and
provisions of the Warrant Certificates as in effect on the Effective Date, the
liens in favor of the Agent for the benefit of the Lenders on all such
securities of the Borrower shall be released; and (c) all Equity Interests of
each of the Restricted Subsidiaries, in each case whether now owned or
hereinafter acquired.
"Commitment" means, as to any Lender, its obligation, if any, to make Loans
to, and/or issue or participate in Letters of Credit issued on behalf of, the
Borrower in an aggregate amount not to exceed at any one time outstanding the
amount set forth opposite such Lender's name in Schedule 1.1 under the heading
"Commitment" or, in the case of any Lender that is an Assignee, the amount of
the assigning Lender's Commitment assigned to such Assignee pursuant to Section
11.6(c) and set forth in the applicable Assignment and Acceptance (in each case,
as the same may be increased, reduced or otherwise adjusted from time to time as
provided herein).
"Common Equity" means the Common Stock and Non-Voting Common Stock of the
Borrower, collectively.
"Common Stock" means the voting class A common stock, par value $.01 per
share, of the Borrower.
"Commonly Controlled Entity" means an entity, whether or not incorporated,
which is under common control with the Borrower within the meaning of Section
4001 of ERISA or is part of a group which includes the Borrower and which is
treated as a single employer under Section 414(b) or (c) of the Code.
"Communications Act" means the Communications Act of 1934, as amended, and
the rules and regulations and published policies thereunder, as amended and in
effect from time to time.
"Compliance Certificate" means a certificate of a Responsible Officer of
the Borrower, substantially in the form of Exhibit B.
8
"Consolidated Interest Expense" means, without duplication, with respect to
any period, the sum of (a) the interest expense and all capitalized interest of
the Borrower and the Restricted Subsidiaries for such period, on a consolidated
basis, including, without limitation, (i) amortization of debt discount, (ii)
the net cost under interest rate contracts (including amortization of debt
discount), (iii) the interest portion of any deferred payment obligation and
(iv) accrued interest, plus (b) the interest component of any Capital Lease
Obligation paid or accrued or scheduled to be paid or accrued by the Borrower or
any of the Restricted Subsidiaries during such period, plus (c) the aggregate
amount of all fees, including but not limited to agency fees, letter of credit
fees and commitment fees incurred by the Borrower or any of the Restricted
Subsidiaries during such period in respect of Indebtedness, determined on a
consolidated basis in accordance with GAAP; provided, however, that any
dividends with respect to the Senior Preferred Stock shall not be considered for
purposes of this definition.
"Continuing Director" means any member of the Board of Directors of the
Borrower who (i) is a member of that Board of Directors of the Borrower on the
Effective Date or (ii) was nominated for election by either (a) one or more of
the Principal Shareholders or (b) the Board of Directors of the Borrower a
majority of whom were directors on the Effective Date or whose election or
nomination for election was previously approved by one or more of the Principal
Shareholders or such directors.
"Contractual Obligation" of any Person means any provision of any security
issued by such Person or subordination agreement, indenture, mortgage, deed of
trust, security agreement, lease agreement, guaranty, contract, undertaking,
instrument or other agreement to which such Person is a party or by which it or
any of its property, assets or revenues is bound or to which any of its
property, assets or revenues is subject, including, without limitation, with
respect to the Loan Parties, obligations in respect of Material Leases, LMA
Agreements, the Senior Subordinated Debt Documents, the Preferred Stock
Documents and the documents and instruments executed in connection with the Xxxx
Acquisition.
"Corporate Overhead Expense" means all general and administrative expenses
incurred during any fiscal period which are not associated with, or attributable
to, the particular operations of one or more of the Stations and which are
properly classified as general and administrative expenses on the Borrower's
financial statements, including compensation paid to Senior Management,
insurance, rent, professional fees, travel and entertainment expenses;
notwithstanding any generally accepted accounting principles to the contrary,
Corporate Overhead Expense shall include all compensation and distributions paid
to or for the benefit of the Management Stockholders (other than Xxxxx),
directly or indirectly in their respective capacity as employees of the
Borrower.
"CSFB" means Credit Suisse First Boston.
9
"Customary Permitted Liens" means Liens on the property or assets of any
Person (other than Liens arising pursuant to any Environmental Law and Liens in
favor of the PBGC):
(a) with respect to the payment of Taxes, assessments or governmental
charges or levies which are not yet due or which are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP;
(b) of landlords arising by statute and Liens of suppliers, mechanics,
carriers, materialmen, warehousemen or workmen and other Liens imposed by
Law created in the ordinary course of business of such Person for amounts
not yet due or which are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves or other
appropriate provisions are being maintained in accordance with GAAP;
(c) incurred, or pledges and deposits made, in the ordinary course of
business of such Person in connection with worker's compensation,
unemployment insurance, pensions or other types of social security
benefits;
(d) arising with respect to zoning restrictions, licenses, covenants,
building restrictions and other similar charges or encumbrances on the use
of real property of such Person which do not materially interfere with the
ordinary conduct of such Person's business; and
(e) minor defects and irregularities in titles, survey exceptions,
encumbrances, easements or reservations of others for rights-of-way, roads,
pipelines, railroad crossings, services, utilities or other similar
purposes which do not adversely affect the value of the property, or
outstanding mineral rights or reservations (including rights with respect
to the removal of mineral resource) which do not materially diminish the
value of the surface estate, assuming usage of such surface estate similar
to that being carried on by any Loan Party as of the Effective Date.
"Debt Service" means for the most recently completed four fiscal quarters
for which financial statements are available, the sum of (a) Consolidated
Interest Expense (other than the amount of any interest accrued, but not yet due
and payable in cash during such period) and (b) scheduled maturities of the
principal amount of Indebtedness and/or cash payments in respect of the
principal amount of Indebtedness due in connection with required permanent
reductions of commitments for borrowed money, whether or not made.
"Default" means any of the events specified in Section 9, whether or not
any requirement for the giving of notice, the lapse of time, or both, has been
satisfied.
"Disposition" has the meaning set forth in Section 8.5.
10
"Disqualified Stock" means any Equity Interest that, by its terms (or by
the terms of any security into which it is convertible or for which it is
exchangeable), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the option of the holder thereof, in whole or in part.
"Documentation Agent" means NationsBank, N.A.
"Dollars" and "$" means dollars in lawful currency of the United States of
America.
"EBITDA" of a specified Person means, for any period, the consolidated net
income of such specified Person and its Restricted Subsidiaries for such period:
(a) plus (without duplication and to the extent involved in computing
such consolidated net income) (i) Consolidated Interest Expense, (ii)
provision for taxes on income or profits and (iii) depreciation,
amortization and other non-cash items (including amortization of goodwill
and other intangibles and barter expenses), and
(b) minus (without duplication and to the extent involved in computing
such consolidated net income) (i) any gains (or plus losses), together with
any related provision for taxes on such gains (or losses), realized in
connection with any sale of assets (including, without limitation,
dispositions pursuant to Sale and Leaseback Transactions), (ii) any
non-cash or extraordinary gains (or plus losses), together with any related
provision for taxes on such extraordinary gains (or losses), (iii) the
amount of any cash payments related to non-cash charges that were added
back in determining EBITDA in any prior period and (iv) barter revenues,
provided, however, that
(1) the net income of any other Person that is accounted for by the
equity method of accounting shall be included only to the extent of the
amount of dividends or distributions paid in cash to such specified Person
whose EBITDA is being determined or a Wholly Owned Restricted Subsidiary
thereof;
(2) the net income of any other Person that is a Restricted Subsidiary
(other than a Wholly Owned Restricted Subsidiary) or is an Unrestricted
Subsidiary shall be included only to the extent of the amount of dividends
or distributions paid in cash to such specified Person whose EBITDA is
being determined or a Wholly Owned Restricted Subsidiary thereof;
(3) the net income (loss) of any other Person acquired after the
Effective Date in a pooling of interests transaction for any period prior
to the date of such acquisition shall be excluded (to the extent otherwise
included); and
11
(4) gains or losses from sales of assets other than sales of assets
acquired and held for resale in the ordinary course of business shall be
excluded (to the extent otherwise included).
All of the foregoing will be determined in accordance with GAAP.
In addition, for purposes of calculating the Leverage Ratio and the Senior
Leverage Ratio, (a) with respect to Acquisitions not owned at all times during
the period involved in determining the EBITDA for the Leverage Ratio and the
Senior Leverage Ratio, there shall be (i) included the EBITDA of any
Acquisitions acquired by the Borrower or any Restricted Subsidiary during the
period involved in such determination and (ii) excluded the EBITDA of any
Dispositions by the Borrower or any Restricted Subsidiary during the period
involved in such determination, assuming in each such case that such
Acquisitions or Dispositions were acquired or disposed of, as the case may be,
on the first day of such period; and (b) with respect to the Acquisition of
Xxxx, the Borrower shall be entitled to certain expense add backs to EBITDA in
the amounts and during the periods set forth in Schedule 1.1B and (c) with
respect to any other Permitted Acquisitions, the Lenders agree to enter into
good faith negotiations with the Borrower to consider pro forma adjustments to
EBITDA to eliminate costs which would be nonrecurring expense items after giving
effect to such Permitted Acquisitions.
"Effective Date" has the meaning set forth in Section 11.8.
"Environmental Laws" means any and all Federal, state, local or municipal
laws, rules, orders, regulations, statutes, ordinances, codes, decrees,
requirements of any Governmental Authority or other Requirements of Law
regulating, relating to or imposing liability or standards of conduct concerning
protection of human health or the environment, as now or may at any time
hereafter be in effect.
"Equity Interest" of any Person means any and all shares, interests, rights
to purchase, warrants, options, participations or other equivalents of or
interests in (however designated) equity of such Person, including any preferred
stock, but excluding any debt securities convertible into such equity, and
including, in the case of a partnership, partnership interests (whether general
or limited) and any other interest or participation that confers on a Person the
right to receive a share of the profits and losses of, or distributions of
assets of, such partnership.
"Equity Proceeds" has the meaning set forth in Section 4.2(e).
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.
12
"Eurocurrency Reserve Requirements" means, for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the rates (expressed as
a decimal fraction) of reserve requirements in effect on such day (including,
without limitation, basic, supplemental, marginal and emergency reserves under
any regulations of the Board or other Governmental Authority having jurisdiction
with respect thereto) dealing with reserve requirements prescribed for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of such Board) maintained by a member bank of the Federal Reserve
System.
"Eurodollar Base Rate" means the rate per annum determined by the Agent at
approximately 11:00 a.m. (London time) on the date which is two Business Days
prior to the beginning of the relevant Interest Period by reference to the
British Bankers' Association Interest Settlement Rates for deposits in Dollars
(as set forth by any service selected by the Agent which has been nominated by
the British Bankers' Association as an authorized information vendor for the
purpose of displaying the rates) for a period equal to such Interest Period;
provided that, to the extent that an interest rate is not ascertainable pursuant
to the foregoing provisions of this definition, the "Eurodollar Base Rate" shall
be the interest rate per annum determined by the Agent to be the average of the
rates per annum at which deposits in Dollars are offered for such relevant
Interest Period to major banks in the London interbank market in London, England
at approximately 11:00 a.m. (London time) on the date which is two Business Days
prior to the beginning of such Interest Period.
"Eurodollar Loans" means any Loan that bears interest computed on the basis
of the Eurodollar Rate.
"Eurodollar Rate" means, with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, a rate per annum determined for such day
in accordance with the following formula:
Eurodollar Base Rate
----------------------------------------
1.00 - Eurocurrency Reserve Requirements
"Eurodollar Tranche" means the collective reference to Eurodollar Loans
made by the Lenders, the then current Interest Periods of which begin on the
same date and end on the same later date (whether or not such Loans shall
originally have been made on the same day).
"Event of Default" means any of the events specified in Section 9, provided
that any requirement for the giving of notice, the lapse of time, or both, or
any other condition, has been satisfied.
"Excess Proceeds" has the meaning set forth in Section 4.2(d).
13
"Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, and any successor statutes.
"Exchange Agreement" means that certain Exchange Agreement, dated as of
June 6, 1995, by and among the Borrower and the Series A Preferred Investors (as
such term is defined in the Preferred Stockholders' Agreement), as amended from
time to time in accordance with the terms hereof and thereof.
"Existing Credit Agreement" means that certain Amended and Restated Credit
Agreement among the Borrower, the several lenders from time to time parties
thereto and NationsBank of Texas, N.A., dated effective as of May 19, 1997, as
amended.
"Fair Market Value" means with respect to any asset or property, the sale
value that would be obtained in an arm's length transaction between an informed
and willing seller under no compulsion to sell and an informed and willing buyer
under no compulsion to buy. All determinations in the covenants of Fair Market
Value shall be made by the Board of Directors of the Borrower and shall be
evidenced by a resolution of such Board set forth in a certificate of a
Responsible Officer delivered to the Agent, upon which the Agent may
conclusively rely.
"FCC" means the Federal Communications Commission (or any successor agency,
commission, bureau, department or other political subdivision of the United
States of America).
"FCC License" means any radio broadcast service, community antenna relay
service, broadcast auxiliary license, earth station registration, business
radio, microwave or special safety radio service license issued by the FCC
pursuant to the Communications Act of 1934, as amended.
"Federal Funds Rate" means for any day the rate per annum (rounded upwards
if necessary, to the nearest 1/100th of 1%) equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day, provided that (a) if such day is not a Business Day, the Federal Funds Rate
for such day shall be such rate on such transactions on the preceding Business
Day as so published on the next succeeding Business Day and (b) if no such rate
is so published on such next succeeding Business Day, the Federal Funds Rate for
such day shall be the average rate quoted to the Agent on such day on such
transactions as reasonably determined by the Agent.
"Fee Letter" means that certain letter agreement, dated as of June 26,
1998, between the Agent and the Borrower concerning certain fees to be paid in
connection with this Agreement, as such letter agreement may be amended,
modified, restated, supplemented, renewed, extended, increased, rearranged or
substituted from time to time.
14
"Final Order" means an action by the FCC or other Tribunal that has not
been vacated, reversed, stayed, enjoined, set aside, annulled or suspended and
with respect to which no requests by any Person are pending for administrative
or judicial review, reconsideration, appeal or stay and the time for filing any
such requests and the time to review or comment with respect to any such action
and for the FCC or other Tribunal to set aside such action on its own order have
expired.
"Fixed Charge Coverage Ratio" means the ratio of (i) EBITDA of the Borrower
and the Restricted Subsidiaries for the most recently completed four fiscal
quarters for which financial statements are available to (ii) Fixed Charges for
such four fiscal quarters.
"Fixed Charges" means, for any period, the sum of (a) Debt Service of the
Borrower and the Restricted Subsidiaries for such period, plus (b) cash taxes
paid by the Borrower and the Restricted Subsidiaries for such period, plus (c)
Capital Expenditures of the Borrower and the Restricted Subsidiaries for such
period, plus (d) cash Restricted Payments (other than Restricted Payments made
pursuant to Section 8.6(b)) made during such period.
"GAAP" means generally accepted accounting principles in the United States
of America as in effect as of the Effective Date, including those set forth in
(i) the opinions and pronouncements of the Accounting Principles Board of the
American Institute of Certified Public Accountants, (ii) statements and
pronouncements of the Financial Accounting Standards Board, (iii) such other
statements by such other entity as approved by a significant segment of the
accounting profession and (iv) the rules and regulations of the SEC governing
the inclusion of financial statements (including pro forma financial statements)
in periodic reports required to be filed pursuant to Section 13 of the Exchange
Act, including opinions and pronouncements in staff accounting bulletins and
similar written statements from the accounting staff of the SEC.
"Governmental Authority" means any nation or government, any state or other
political subdivision thereof and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.
"Guaranty" means each Guaranty of a Restricted Subsidiary, substantially in
the form of Exhibit C, executed and delivered as required pursuant to the terms
hereof, as the same may be amended, modified, restated, supplemented, renewed,
extended, rearranged or substituted from time to time.
15
"Guaranty Obligation" means for any Person, without duplication, any
obligation, contingent or otherwise, of such Person guaranteeing or otherwise
becoming liable for any Indebtedness of any other Person ("primary obligor") in
any manner, whether directly or indirectly, and including, without limitation,
any obligation of such Person, direct or indirect (a) to purchase or pay, or to
advance or supply funds for the purchase or payment of such Indebtedness or to
purchase, or to advance or supply funds for the purchase of, any security for
the payment of such Indebtedness, (b) to purchase property, securities or
services for the purpose of assuring the owner of such Indebtedness of the
payment of such Indebtedness or (c) to maintain working capital, equity capital
or other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such Indebtedness; provided that the term
Guaranty Obligation shall not include endorsements for collection or deposit, in
each case in the ordinary course of the endorser's business.
"Highest Lawful Rate" shall mean at the particular time in question the
maximum rate of interest which, under applicable Law, the Lenders are then
permitted to charge on the Obligations. If the maximum rate of interest which,
under applicable Law, the Lenders are permitted to charge on the Obligations
shall change after the Effective Date, the Highest Lawful Rate shall be
automatically increased or decreased, as the case may be, from time to time as
of the effective time of each change in the Highest Lawful Rate without notice
to the Borrower.
"Xxxxxx" means Xxxxxxxxx X. Xxxxxx.
"Indebtedness" means, with respect to any Person, whether or not
contingent, (i) all indebtedness of such Person for borrowed money or for the
deferred purchase price of property or services (other than current trade
liabilities incurred in the ordinary course of business and payable in
accordance with customary practices) or which is evidenced by a note, bond,
debenture or similar instrument, (ii) all Capital Lease Obligations of such
Person, (iii) all obligations of such Person in respect of surety bonds, letters
of credit, bankers' acceptances and similar instruments issued or created for
the account of such Person, (iv) all liabilities in respect of Interest Hedge
Agreements of such Person, (v) any liability secured by any Lien on any property
owned by such Person even if such Person has not assumed or otherwise become
liable for the payment thereof to the extent of the value of the property
subject to such Lien, (vi) all Disqualified Stock of such Person, and (vii) to
the extent not otherwise included, any Guaranty Obligation of such Person;
provided, however, in no event shall the Senior Preferred Stock (including any
and all accrued dividends thereon) be considered "Indebtedness."
"Information" means written information, including, without limitation,
certificates, reports, statements (other than financial statements, budgets,
projections and similar financial data) and documents.
"Insolvency" means with respect to any Multiemployer Plan, the condition
that such Plan is insolvent within the meaning of Section 4245 of ERISA.
16
"Insolvent" means pertaining to a condition of Insolvency.
"Intellectual Property Security Agreement" means each Intellectual Property
Security Agreement and Assignment, substantially in the form of Exhibit G-1,
executed and delivered by the Borrower and the Restricted Subsidiaries as
required by the terms hereof, as such security agreements may be amended,
modified, restated, supplemented, renewed, extended, rearranged or substituted
from time to time.
"Interest Coverage Ratio" means, as of the date of any determination, the
ratio of (a) EBITDA of the Borrower and the Restricted Subsidiaries for the most
recently completed four fiscal quarters for which financial statements are
available to (b) Consolidated Interest Expense (other than the amount of any
interest accrued, but not yet due and payable during such period) of the
Borrower and the Restricted Subsidiaries for such four fiscal quarters.
"Interest Hedge Agreements" means any interest rate swap agreements,
interest rate cap agreements, interest rate collar agreements, or any similar
agreements, or arrangements designed to hedge the risk of variable interest rate
volatility.
"Interest Payment Date" means (a) as to any ABR Loan, (i) the last Business
Day of each March, June, September and December prior to the Termination Date
and (ii) the Termination Date, (b) as to any Eurodollar Loan (i) having an
Interest Period of three months or less, the last day of such Interest Period,
(ii) having an Interest Period longer than three months, each day which is three
months or a whole multiple thereof, after the first day of such Interest Period
and the last day of such Interest Period and (iii) the Termination Date.
"Interest Period": with respect to any Eurodollar Loan:
(a) initially, the period commencing on the borrowing or conversion
date, as the case may be, with respect to such Eurodollar Loan and ending
one, two, three or six months thereafter (or, to the extent available from
all Lenders, nine or twelve months thereafter), as selected by the Borrower
in its Notice of Borrowing or Notice of Conversion/Continuation, as the
case may be, given with respect thereto; and
(b) thereafter, each period commencing on the last day of the next
preceding Interest Period applicable to such Eurodollar Loan and ending
one, two, three or six months thereafter (or, to the extent available from
all Lenders, nine or twelve months thereafter), as selected by the Borrower
by irrevocable notice to the Agent not less than three Business Days prior
to the last day of the then current Interest Period with respect thereto;
provided that, all of the foregoing provisions relating to Interest Periods are
subject to the following:
17
(i) if any Interest Period would otherwise end on a day that is not a
Business Day, such Interest Period shall be extended to the next succeeding
Business Day unless the result of such extension would be to carry such
Interest Period into another calendar month in which event such Interest
Period shall end on the immediately preceding Business Day;
(ii) any Interest Period that would otherwise extend beyond the
Termination Date shall end on the Termination Date; and
(iii) any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on
the last Business Day of a calendar month.
"Investment" means, in any Person, any direct or indirect advance, loan
(other than advances to customers in the ordinary course of business that are
recorded as accounts receivable on the balance sheet of the lender) or other
extensions of credit (including by way of a Guaranty Obligation or similar
arrangement) or capital contribution to (by means of any transfer of cash or
other property to others or any payment for property or services for the account
or use of others), or any purchase or acquisition of Equity Interests,
Indebtedness or other similar instruments issued by such Person. For purposes of
Section 8.8, any property transferred to or from an Unrestricted Subsidiary
shall be valued at its Fair Market Value at the time of such transfer, in each
case as determined in good faith by the Board of Directors of the Borrower.
"Investors" means Alta Subordinated Debt Partners III, L.P., BancBoston
Investments Inc., Xxxxx X. Xxxxxx, Syncom Capital Corporation, Alliance
Enterprise Corporation, Xxxxxxx (successor in interest to Greater Philadelphia
Venture Capital Corporation, Inc.), Opportunity Capital Corporation, Capital
Dimensions Venture Fund, Inc., TSG Ventures L.P. (successor in interest to TSG
Ventures, Inc.) and Fulcrum Venture Capital Corporation.
"Issuing Lender" means CSFB, provided that, in the event that CSFB shall be
replaced as the Agent pursuant to Section 10.9, no Letter of Credit shall be
issued by CSFB on or after the date of such replacement and (ii) the replacement
Agent shall be the Issuing Lender from and after the date of such replacement.
"LMA Agreements" means any time brokerage agreement, local marketing
agreement, local market affiliation agreement, joint sales agreement, joint
operating agreement or joint operating venture for the operation of a radio
station or related or similar agreements entered into, directly or indirectly,
between any Loan Party and any other Person other than another Loan Party.
"Law" means all applicable statutes, laws, ordinances, regulations, rules,
guidelines, orders, writs, injunctions, or decrees of any state, commonwealth,
nation, territory, province, possession, township, county, parish, municipality
or Tribunal.
18
"L/C Fee Payment Date" means (i) the last Business Day of each March, June,
September and December prior to the Termination Date and (ii) the Termination
Date.
"L/C Obligations" means at any time, an amount equal to the sum of (a) the
aggregate then undrawn and unexpired amount of the then outstanding Letters of
Credit and (b) the aggregate amount of all unpaid Reimbursement Obligations.
"Lender" has the meaning set forth in the introductory paragraph of this
Agreement.
"Letters of Credit" has the meaning set forth in Section 3.1(a).
"Leverage Ratio" means, as of any date, the ratio of (i) the sum of all
Indebtedness of the Borrower and the Restricted Subsidiaries as of such date to
(ii) EBITDA of the Borrower and the Restricted Subsidiaries for the most
recently completed four fiscal quarters for which financial statements are
available.
"License" means as to any Person, any license, permit, certificate of need,
authorization, certification, accreditation, franchise, approval, or grant of
rights by any Governmental Authority or other Person necessary or appropriate
for such Person to own, maintain, or operate its business or property, including
FCC Licenses.
"License Subsidiaries" means any Wholly Owned Restricted Subsidiary of the
Borrower organized by the Borrower for the sole purpose of holding FCC Licenses
and other Necessary Authorizations.
"Lien" means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security
interest or any preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including, without limitation, any
conditional sale or other title retention agreement and any capital lease having
substantially the same economic effect as any of the foregoing).
"Xxxxxxx" means Xxxxxx X. Xxxxxxx, III.
"Xxxxxxx Credit Agreement" means that certain loan agreement, dated as of
October 23, 1997, among Xxxxxxx, as the borrower thereunder, and NationsBank of
Texas, N.A., as the lender thereunder (the "Loan Agreement") and the promissory
note, of even date therewith, executed by Xxxxxxx in favor of NationsBank of
Texas, N.A. in connection with such Loan Agreement, in the original principal
amount of $367,000, and any and all other Loan Documents (as such term is
defined in such Loan Agreement) relating thereto.
"Loan" has the meaning set forth in Section 2.1.
19
"Loan Documents" means this Agreement, the Notes, the Security Documents,
all UCC financing statements, the Standstill Agreement, any Application, any
Interest Hedge Agreements with any Lenders relating to the Loans, the Fee
Letter, all certificates executed and delivered by any Loan Party in connection
with any Loan Document, any agreements between any Loan Party and the Agent or
any Lender in respect of fees or the reimbursement of costs and expenses in
connection with the transactions contemplated hereby and any and all other
documents, instruments, certificates and agreements now or hereafter executed
and delivered by any Person pursuant to or in connection with any of the
foregoing, and any and all present or future amendments, modifications,
supplements, renewals, extensions, increases, restatements, rearrangements or
substitutions from time to time of all or any part of any of the foregoing.
"Loan Parties" means the collective reference to the Borrower and the
Restricted Subsidiaries.
"Majority Lenders" means (i) initially, in the event that there are no more
than two Lenders and until such time as there are more than two Lenders, at any
time when no Loans or L/C Obligations are outstanding, the Lenders having
Commitments equal to or more than 66-2/3% of the Aggregate Commitment, and at
any time when Loans or L/C Obligations are outstanding, the Lenders with
outstanding Loans and participations in L/C Obligations having an unpaid
principal balance and face amount, respectively, equal to or more than 66-2/3%
of all Loans and L/C Obligations outstanding, excluding from such calculation
the Lenders which have failed or refused to fund a Loan or their respective
portion of an unpaid Reimbursement Obligation; and (ii) at any time on or after
there are more than two Lenders and continuing at all times thereafter whether
or not there are only two Lenders, at any time when no Loans or L/C Obligations
are outstanding, the Lenders having Commitments equal to or more than 50% of the
Aggregate Commitment, and at any time when Loans or L/C Obligations are
outstanding, the Lenders with outstanding Loans and participations in L/C
Obligations having an unpaid principal balance and face amount, respectively,
equal to or more than 50% of all Loans and L/C Obligations outstanding,
excluding from such calculation the Lenders which have failed or refused to fund
a Loan or their respective portion of an unpaid Reimbursement Obligation.
"Management Stockholders" means Xxxxxx, Xxxxxxx and Xxxxx.
"Margin Stock" has the meaning assigned to such term in Regulation U of the
Board.
"Material Adverse Effect" means (i) any adverse effect upon the validity or
enforceability of any Loan Document or the rights and remedies of the Lenders
thereunder, (ii) any material adverse effect on the business, condition
(financial or otherwise), operations, performance, property or assets of (x) the
Borrower and the Restricted Subsidiaries taken as a whole or (y) any License
Subsidiary or (iii) any material adverse effect upon the ability of any Loan
Party to perform its obligations under any Loan Document.
20
"Materials of Environmental Concern" means any gasoline or petroleum
(including crude oil or any fraction thereof) or petroleum products or any
hazardous or toxic substances, materials or wastes, defined or regulated as such
in or under any Environmental Law, including, without limitation, asbestos,
polychlorinated biphenyls and urea-formaldehyde insulation.
"Material Lease" means each lease of real property by any Loan Party, as
lessee, sublessee or lessor, which is a radio studio location or antenna, tower
or transmitter site.
"Xxxxx" means Xxxxx X. Xxxxx, III.
"Mortgaged Properties" means the owned real properties and leasehold and
subleasehold interests of the Loan Parties specified on Schedule 5.24(b) and any
other real property or interests in real property hereafter subject to any
Mortgage.
"Mortgages" means each deed of trust, leasehold deed of trust, mortgage,
deed to secure debt, leasehold mortgage, collateral assignment of leases or
other real estate security document securing the Obligations or any portion
thereof and all modifications and supplements to any of the foregoing that are
executed and delivered by any Loan Party pursuant to or in connection with any
of the Loan Documents, and any and all amendments, modifications, restatements,
supplements, renewals, extensions, rearrangements or substitutions from time to
time of any of the foregoing.
"Multiemployer Plan" means a multiemployer plan as defined in sections
3(37) or 4001(a)(3) of ERISA or section 414 of the Code to which the Borrower or
any Common Controlled Entity is making, or has made, or is accruing, or has
accrued, an obligation to make contributions.
"Necessary Authorization" means any license, permit, consent, franchise,
order approval or authorization from, or any filing, recording or registration
with, any Tribunal (including, without limitation, the FCC) necessary to the
conduct of any Loan Party's business or for the ownership, maintenance and
operation by any Loan Party of its Stations and other properties or to the
performance by any Loan Party of its obligations under any LMA Agreement to
which it is a party.
"Net Proceeds" means, with respect to any Disposition or Recovery Event,
the aggregate cash proceeds received by the Borrower or a Restricted Subsidiary
in respect of such Disposition or Recovery Event, which amount is equal to the
excess, if any, of:
(i) the cash received by the Borrower or a Restricted Subsidiary
(including any cash payments received by way of deferred payment pursuant
to, or monetization of, a note or installment receivable or otherwise, but
only as and when received) in connection with such Disposition or Recovery
Event, over
21
(ii) the sum of
(a) the amount of any Indebtedness including any premium thereon
and fees and expenses associated therewith which is required to be
repaid by the Borrower or a Restricted Subsidiary in connection with
such Disposition, plus
(b) the out-of-pocket expenses (1) incurred by the Borrower or a
Restricted Subsidiary in connection with such Disposition or Recovery
Event, plus
(c) provision for taxes, including income taxes, attributable to
the Disposition or Recovery Event or attributable to required
prepayments or repayments of Indebtedness with the proceeds of such
Disposition or Recovery Event, plus
(d) a reasonable reserve for the after-tax costs of any
indemnification payments (fixed or contingent) attributable to the
seller's indemnities to the purchaser in respect of such Disposition
or Recovery Event undertaken by the Borrower or any of the Restricted
Subsidiaries in connection with such Disposition or Recovery Event.
For purposes of this definition and amounts due under Section 4.2(d), the
following are deemed to be cash: (x) the assumption of Indebtedness of the
Borrower or any Restricted Subsidiary and the release of the Borrower or such
Restricted Subsidiary from all liability on such Indebtedness in connection with
such Disposition (other than customary indemnification provisions relating
thereto that do not involve the repayment of funded Indebtedness) and (y)
securities or notes received by the Borrower or any Restricted Subsidiary from
the transferee that are promptly converted by the Borrower or such Restricted
Subsidiary into cash.
"Net Revenues" means gross revenues less agency commissions, after all
proper charges and reserves, as determined in accordance with GAAP.
"Non-Excluded Taxes" has the meaning set forth in Section 4.10(a).
"Non-U.S. Lender" has the meaning set forth in Section 4.10(b).
"Non-Voting Common Stock" means the non-voting class B common stock, par
value $.01 per share of the Borrower.
"Notes" has the meaning set forth in Section 2.1.
"Notice of Borrowing" has the meaning set forth in Section 2.3.
"Notice of Conversion/Continuation" has the meaning set forth in Section
4.5.
22
"Obligations" means the unpaid principal of and interest on (including,
without limitation, interest accruing after the maturity of the Loans and
Reimbursement Obligations and interest accruing after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like
proceeding, relating to any Loan Party, whether or not a claim for post-filing
or post-petition interest is allowed in such proceeding) the Loans and
Reimbursement Obligations and all other obligations and liabilities of any Loan
Party to the Agent or to any Lender (or, in the case of any Interest Hedge
Agreement, any Affiliate of any Lender), whether direct or indirect, absolute or
contingent, due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with, this Agreement, any other Loan
Document, the Letters of Credit, any Interest Hedge Agreement entered into with
any Lender (or any Affiliate of any Lender) or any other document executed and
delivered by any Loan Party in connection herewith or therewith, whether on
account of principal, interest, reimbursement obligations, fees, indemnities,
costs, expenses (including, without limitation, all reasonable fees, charges and
disbursements of counsel to the Agent or to any Lender that are required to be
paid by any Loan Party pursuant hereto) or otherwise.
"Operating Agreement" means an agreement substantially in the form of
Exhibit D.
"Operating Lease" means any lease that is an operating lease in accordance
with GAAP and that has an initial or remaining noncancellable lease term in
excess of one year.
"OSHA" means the Occupational Safety and Health Act, 29 U.S.C. ss.ss.651 et
seq., as amended.
"Participant" has the meaning set forth in Section 11.6(b).
"PBGC" means the Pension Benefit Guaranty Corporation established pursuant
to Subtitle A of Title IV of ERISA.
"Perfection Certificate" means a Perfection Certificate duly executed by
each Loan Party, in the form of Exhibit E and delivered to the Agent pursuant to
Section 6.1(r).
"Permitted Acquisitions" has the meaning set forth in Section 8.7(c).
"Permitted Investments" means:
(i) any Investment in the Borrower or any Wholly Owned Restricted
Subsidiary;
(ii) any Investment in Cash Equivalents;
23
(iii) any Investment in a Person if, as a result of such Investment,
(a) such Person becomes a Wholly Owned Restricted Subsidiary of the
Borrower, or (b) such Person either (1) is merged, consolidated or
amalgamated with or into the Borrower or one of its Wholly Owned Restricted
Subsidiaries and the Borrower or such Wholly Owned Restricted Subsidiary is
the Surviving Person or the Surviving Person becomes a Wholly Owned
Restricted Subsidiary, or (2) transfers or conveys all or substantially all
of its assets to, or is liquidated into, the Borrower or one of its Wholly
Owned Restricted Subsidiaries;
(iv0 any Investment in accounts and notes receivable acquired in the
ordinary course of business;
(v0 loans and advances to employees of the Borrower or any Restricted
Subsidiary in the ordinary course of business not in excess of $100,000 in
the aggregate at any time outstanding; and
(vi0 a one-time term loan from the Borrower to Xxxxxxx made in
connection with the pay-off and termination of the Xxxxxxx Credit
Agreement, in an original principal amount not to exceed $380,000.
"Permitted Line of Business" has the meaning set forth in Section 8.11.
"Person" means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association,
joint venture, Governmental Authority or other entity of whatever nature.
"Plan" means at a particular time, any employee benefit plan which is
covered by ERISA and in respect of which the Borrower or a Commonly Controlled
Entity is (or, if such plan were terminated at such time, would under Section
4069 of ERISA be deemed to be) a "contributing sponsor" as defined in Section
4001(a)(13) of ERISA or a member of such contributing sponsor's "control group"
as defined in Section 4001(a)(14) of ERISA.
"Pledge Agreements" means each Pledge Agreement, substantially in the form
of (i) Exhibit F-1 with respect to the Borrower, (ii) Exhibit F-2 with respect
to Restricted Subsidiaries, (iii) Exhibit F-3 with respect to the Warrantholders
(the "Warrantholders' Pledge") and (iv) Exhibit F-4 with respect to the
Management Stockholders, executed and delivered as required pursuant to the
terms hereof, as each of the foregoing may be amended, modified, restated,
supplemented, renewed, extended, rearranged and substituted from time to time.
24
"Preferred Stock", as applied to the Equity Interests of any Person, means
Equity Interests of any class or classes (however designated) that is preferred
as to the payment of dividends or distributions, or as to the distribution of
assets upon any voluntary or involuntary liquidation or dissolution of such
Person, over Equity Interests of any other class of such Person.
"Preferred Stock Documents" means all of the documents, agreements,
instruments, proxies and certificates executed and delivered by any Loan Party
in connection with the Senior Preferred Stock or otherwise relating to the
Senior Preferred Stock, including but not limited to the Securities Purchase
Agreement, the Warrant Agreement, the Exchange Agreement, the Amended and
Restated Certificate of Incorporation, the Preferred Stockholders' Agreement,
the Warrant Certificates and all security agreements, guaranties, pledge
agreements, collateral assignments, mortgages, deeds of trust and other security
documents relating to any of the foregoing, all certificates and proxies
executed and delivered in connection with any of the foregoing and all other
documents, agreements and instruments now or hereafter executed or delivered by
any Person in connection with or as security for the payment and performance of
the Senior Preferred Stock, as amended, in each case, with the consent (to the
extent necessary) of the Lenders required pursuant to the Subordination
Agreement.
"Preferred Stockholders' Agreement" means that certain Preferred
Stockholders' Agreement, dated as of May 14, 1997 by and among the Investors,
the Borrower, Radio One Licenses, Inc. (the surviving corporation of the merger
of Radio One License LLC) and the Management Stockholders, as amended by that
certain First Amendment to Preferred Stockholders' Agreement, dated as of June
30, 1998 and as otherwise amended from time to time and in accordance with the
terms hereof and thereof.
"Prime Rate" has the meaning set forth in the definition of ABR.
"Principal Shareholders" means (i) Xxxxxx and Xxxxxxx, (ii) any foundation
or trust in which Xxxxxx or Xxxxxxx has a beneficial interest, provided that for
purposes of determining compliance with clause (v)(3) of the definition of
Change of Control set forth in Section 1.1, only to the extent of such
beneficial interests of Xxxxxx and/or Xxxxxxx in such foundation or trust or
(iii) a partnership, limited liability company or other business combination in
which Xxxxxx or Xxxxxxx has an interest, provided that for purposes of
determining compliance with clause (v)(3) of the definition of Change of Control
set forth in Section 1.1, only to the extent of the interests of Xxxxxx and/or
Xxxxxxx in such partnership, limited liability company or other business
combination.
"Properties" has the meaning set forth in Section 5.17(e).
"Public Equity Offering" means an underwritten primary public offering of
common stock of the Borrower pursuant to an effective registration statement
under the Securities Act.
25
"Purchase Agreement" means that certain Purchase Agreement, dated as of May
14, 1997, among the Borrower, as the issuer thereunder, Radio One Licenses,
Inc., as a guarantor thereunder, and Credit Suisse First Boston Corporation and
NationsBanc Capital Markets, Inc., acting on behalf of themselves and as the
representatives of the several initial purchasers thereunder, regarding the sale
by the Borrower of the Senior Subordinated Notes.
"Purchase Money Indebtedness" means Indebtedness of the Borrower and the
Restricted Subsidiaries incurred in connection with the purchase of property or
assets for the business of the Borrower and the Restricted Subsidiaries.
"Purchase Money Lien" means any Lien securing solely Purchase Money
Indebtedness; provided that (i) any such Lien attaches concurrently with the
acquisition of the subject property, (ii) such Lien attaches solely to the
property so acquired in such transaction and (iii) the principal amount of the
Indebtedness secured thereby does not exceed 100% of the cost of such property.
"Recovery Event" means any settlement of or payment in respect of a
condemnation or taking or a property insurance claim or casualty insurance claim
relating to any property or asset or rights therein of the Borrower or any of
the Restricted Subsidiaries.
"Register" has the meaning set forth in Section 11.6(g).
"Reimbursement Obligations" means the obligations of the Borrower to
reimburse the Issuing Lender pursuant to Section 3.5 for amounts drawn under
Letters of Credit.
"Reorganization" means with respect to any Multiemployer Plan, the
condition that such plan is in reorganization within the meaning of Section 4241
of ERISA.
"Reportable Event" means any of the events set forth in Section 4043(b) of
ERISA, other than those events as to which the thirty day notice period is
waived under Sections .13, .14, .16, .18, .19 or .20 of PBGC Reg. ss. 2615.
"Requirement of Law" means as to any Person, the Charter Documents of such
Person, and any law, treaty, rule or regulation or determination of an
arbitrator or a court or other Governmental Authority (including any
Authorization), in each case applicable to or binding upon such Person or any of
its property or to which such Person or any of its property is subject.
"Responsible Officer" means the chief executive officer, the president or
the chief financial officer of the relevant Loan Party.
26
"Restricted Payment" means, with respect to any Person, (i) the declaration
or payment of any dividends or any other distributions of any sort in respect of
its Equity Interests (including any payment in connection with any merger or
consolidation involving such Person) or similar payment to the direct or
indirect holders of its Equity Interests (other than in each such case
distributions payable solely in its Equity Interests that is not Disqualified
Stock) and dividends or distributions payable solely to the Borrower or a Wholly
Owned Restricted Subsidiary, (ii) the purchase, redemption or other acquisition
or retirement for value of any Equity Interests of the Borrower held by any
Person or of any Equity Interests of a Restricted Subsidiary held by any Person
(other than a Wholly Owned Restricted Subsidiary), including the exercise of any
option to exchange any Equity Interests (other than its Equity Interests of the
Borrower that is not Disqualified Stock), or (iii) the purchase, repurchase,
redemption, defeasance (including without limitation, any payment or deposit in
respect of defeasance) or other acquisition or retirement for value, prior to
scheduled maturity, scheduled repayment or scheduled sinking fund payment of any
Disqualified Stock or Subordinated Debt.
"Restricted Subsidiaries" means each direct and indirect Subsidiary of the
Borrower other than an Unrestricted Subsidiary.
"Rights" means rights, remedies, powers and privileges.
"Sale and Leaseback Transaction" means a transaction whereby any Loan Party
becomes liable with respect to any lease, whether an Operating Lease or a
capital lease, or any property (whether real, personal or mixed), whether now
owned or hereafter acquired, which (a) any Loan Party has sold or transferred or
is to sell or transfer to any other Person or (b) any Loan Party intends to use
for substantially the same purposes as any other property which has been or is
to be sold or transferred by any Loan Party to any other Person in connection
with such lease.
"SEC" means the Securities and Exchange Commission.
"Securities Act" means the Securities Act of 1933, as amended from time to
time, and any successor statute.
"Securities Purchase Agreement" means that certain Agreement for Purchase
and Sale of $17,000,000 Subordinated Secured Promissory Notes Due 2003 and
Warrants to Purchase Common Stock of Radio One, Inc., dated as of June 6, 1995,
among the Borrower, the Subsidiaries of the Borrower party thereto, Liggins,
Hughes, Xxxxx and the Investors, as amended with the consent of the Lenders
required pursuant to the Subordination Agreement.
"Security Agreements" means each Security Agreement, substantially in the
form of Exhibit G-2, with respect to the Borrower, and Exhibit G-3, with respect
to the Restricted Subsidiaries, executed and delivered as required pursuant to
the terms hereof, as each of the foregoing may be amended, modified, restated,
supplemented, renewed, extended, rearranged and substituted from time to time.
27
"Security Documents" means the Security Agreements, the Pledge Agreements,
the Intellectual Property Security Agreements, the Mortgages, each Guaranty and
any and all other agreements, deeds of trust, mortgages, chattel mortgages,
security agreements, pledges, guaranties, assignments of proceeds, assignments
of income, assignments of contract rights, assignments of partnership interest,
assignments of royalty interests, assignments of performance or other collateral
assignments, completion or surety bonds, standby agreements, subordination
agreements, undertakings and other documents, agreements, instruments and
financing statements now or hereafter executed and delivered by any Person in
connection with, or as security for the payment or performance of, the
Obligations or any part thereof.
"Senior Debt" means for the Borrower and the Restricted Subsidiaries on a
consolidated basis as of the date of any determination, the aggregate amount of
all outstanding Indebtedness other than Subordinated Debt.
"Senior Leverage Ratio" means, as of any date, the ratio of (i) the sum of
all Senior Debt of the Borrower and the Restricted Subsidiaries as of such date
to (ii) EBITDA of the Borrower and the Restricted Subsidiaries for the most
recently completed four fiscal quarters for which financial statements are
available.
"Senior Management" shall mean Xxxxxx, Xxxxxxx and Xxxxx X. Xxxxxxx.
"Senior Preferred Stock" means (i) 84,843.03 shares of the Series A 15%
Senior Cumulative Redeemable Preferred Stock, par value $.01 per share, (ii)
124,467.10 shares of the Series B 15% Senior Cumulative Redeemable Preferred
Stock, par value $.01 per share and (iii) if exercised, the number of shares of
Series A 15% Senior Cumulative Redeemable Preferred Stock to which the holder of
the Allied Warrant is entitled thereunder not to exceed an original liquidation
value of $4,000,000, provided that the holder of such Allied Warrant has assumed
all the obligations and liabilities under, and become a party to, the Standstill
Agreement as an "Investor" thereunder.
"Senior Subordinated Debt Documents" means any and all agreements relating
to the Senior Subordinated Indebtedness, including but not limited to the Senior
Subordinated Notes, the Purchase Agreement, the Senior Subordinated Notes
Indenture, the Standstill Agreement and the Senior Subordinated Guaranties.
"Senior Subordinated Guaranties" means any and all guaranties of the Senior
Subordinated Indebtedness.
"Senior Subordinated Indebtedness" means the Indebtedness owed by the Loan
Parties to the Senior Subordinated Note Holders in an original principal amount
not to exceed $85,478,000 which bears interest and has a maturity as set forth
in the Senior Subordinated Notes Indenture.
28
"Senior Subordinated Note Holders" means the holders of the Senior
Subordinated Notes.
"Senior Subordinated Notes" means (a) those certain 12% Senior Subordinated
Notes due 2004, from the Borrower in the aggregate original principal amount of
$85,478,000, issued pursuant to the Senior Subordinated Notes Indenture; and (b)
all senior subordinated notes of the Borrower issued in exchange for the Senior
Subordinated Notes on terms substantially identical to the terms of the Senior
Subordinated Notes.
"Senior Subordinated Notes Indenture" means that certain Indenture, dated
as of May 15, 1997, among the Borrower, the Restricted Subsidiaries and United
States Trust Company of New York, as trustee for the Senior Subordinated Note
Holders, as amended from time to time in accordance with the terms hereof and
thereof.
"Single Employer Plan" means any Plan which is covered by Title IV of
ERISA, but which is not a Multiemployer Plan.
"Solvent" means, with respect to any Person as of the date of any
determination, that on such date (a) the fair value of the property of such
Person (both at fair valuation and at present fair saleable value) is greater
than the total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, (b) the present fair saleable value of the assets
of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured, (c) such Person is able to realize upon its assets and pay its debts
and other liabilities, contingent obligations and other commitments as they
mature in the normal course of business, (d) such Person does not intend to, and
does not believe that it will, incur debts or liabilities beyond such Person's
ability to pay as such debts and liabilities mature and (e) such Person is not
engaged in business or a transaction, and is not about to engage in business or
a transaction, for which such Person's property would constitute unreasonably
small capital after giving due consideration to current and anticipated future
capital requirements and current and anticipated future business conduct and the
prevailing practice in the industry in which such Person is engaged. In
computing the amount of contingent liabilities at any time, such liabilities
shall be computed at the amount which, in light of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability.
"Specified Percentage" means at any time, as to any Lender, the percentage
of the Aggregate Commitment then constituted by such Lender's Commitment.
"Standstill Agreement" means that certain Standstill Agreement, dated as of
June 30, 1998, between the Borrower, Radio One Licenses, Inc., the Investors,
United States Trust Company of New York, as trustee on behalf of the Senior
Subordinated Note Holders, the Management
29
Stockholders and the Agent, which Standstill Agreement replaces that certain
Standstill Agreement, dated as of May 19, 1997, among each of the foregoing
parties.
"Station" or "Stations" has the meaning set forth in Section 5.25.
"Subordinated Debt" means any Indebtedness of the Borrower or any
Restricted Subsidiary if the instrument creating or evidencing such Indebtedness
or pursuant to which such Indebtedness is outstanding expressly provides that
such Indebtedness is (i) if incurred by the Borrower, subordinated in right of
payment to the Obligations or (ii) if incurred by a Restricted Subsidiary,
subordinated in right of payment to the Guaranty and/or the Obligations, as the
same relate to a Restricted Subsidiary.
"Subordination Agreement" means the Standstill Agreement, which Standstill
Agreement was given in replacement of that certain Intercreditor and
Subordination Agreement, dated as of June 6, 1995, executed by the Loan Parties,
the Investors, the Management Stockholders and the Agent. Accordingly, all
references in any Loan Document or any other agreement or document to the
Subordination Agreement shall mean the Standstill Agreement.
"Subsidiary" means, with respect to any Person, any corporation,
association or other business entity of which more than 50% of the total voting
power of all Voting Equity Interests entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
or other governing body thereof is at the time owned or controlled by such
Person (regardless of whether such Equity Interests are owned directly or
through one or more other Subsidiaries of such Person or a combination thereof).
Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
the Borrower. "Wholly Owned Subsidiary" shall mean (a) any such corporation of
which all of such shares, other than directors' qualifying shares, are so owned
or controlled, directly or indirectly, and (b) any such partnership,
association, joint venture or other entity in which such Person owns or
controls, directly or indirectly, 100% of such interests.
"Surviving Person" means, with respect to any Person involved in or that
makes any Disposition, the Person formed by or surviving such Disposition or the
Person to which such Disposition is made.
"Tax Return" means, with respect to any Person, any return, declaration,
report, claim for refund, or information return or statement relating to Taxes
of such Person, including any schedule or attachment thereto and including any
amendment thereof.
30
"Taxes" means all taxes, assessments, fees, levies, imposts, duties,
deductions, withholdings or other charges of any nature whatsoever from time to
time or at any time imposed by any Law or Tribunal, excluding, in the case of
each Lender and the Agent, taxes based on or measured by its net income, and
franchise taxes and any doing business taxes imposed on it, by any jurisdiction
(or political subdivisions thereof) in which the Agent or such Lender or any
applicable lending office is organized, located or doing business.
"Termination Date" means the earlier of (i) December 31, 2003, (ii) the
date the Commitments under this Agreement are otherwise canceled or terminated
in their entirety and (iii) the date all of the Obligations shall become due and
payable whether at stated maturity, by acceleration or otherwise in accordance
with the term hereof.
"Total Available Commitment" means the sum of the Available Commitments of
all of the Lenders.
"Tribunal" means any court or governmental department, commission, board,
bureau, agency or instrumentality of the United States of America or any state,
commonwealth, nation, territory, province, possession, township, county, parish
or municipality, whether now or hereafter constituted or existing.
"UCC" means the Uniform Commercial Code as enacted in the State of New York
or other applicable jurisdiction, as amended from time to time.
"Uniform Customs" means the Uniform Customs and Practice for Documentary
Credits (1993 Revision), International Chamber of Commerce Publication No. 500,
as the same may be amended from time to time.
"Unrestricted Subsidiary" means (i) WYCB Acquisition Corporation, a
Delaware corporation and Broadcast Holdings, Inc., a Washington, D.C.
corporation and (ii) any Subsidiary of the Borrower that is formed or acquired
after the Effective Date, which is funded through Investments as permitted by
Section 8.8(b) (as designated by the Board of Directors of the Borrower, as
provided below) and (iii) any direct or indirect Subsidiary of an Unrestricted
Subsidiary; provided that at the time of the Investment by the Borrower to such
Unrestricted Subsidiary and at all times thereafter (a) neither the Borrower nor
any of the Restricted Subsidiaries provides credit support for any Indebtedness
of such Unrestricted Subsidiary (including any undertaking, agreement or
instrument evidencing such Indebtedness) other than Investments permitted under
Section 8.8, (b) such Subsidiary is not liable, directly or indirectly, with
respect to any Indebtedness other than Unrestricted Subsidiary Indebtedness, (c)
such Unrestricted Subsidiary is not a party to any agreement, contract,
arrangement or understanding at such time with the Borrower or any Restricted
Subsidiary of the Borrower except for transactions with Affiliates permitted by
the terms of this Agreement unless the terms of any such agreement, contract,
arrangement or understanding are no less favorable to the Borrower or such
Restricted Subsidiary than those that might be obtained at
the time from Persons who are not Affiliates of the Borrower and (d) such
Unrestricted Subsidiary does not own any Equity Interest in or Indebtedness of
any Subsidiary of the Borrower that has not theretofore been and is not
simultaneously being designated an Unrestricted Subsidiary. Any such designation
by the Board of Directors of the Borrower shall be evidenced to the Agent by
delivering to the Agent a board resolution giving effect to such designation and
an Officers' Certificate certifying that such designation complies with the
foregoing conditions.
"Unrestricted Subsidiary Indebtedness" means of any Unrestricted
Subsidiary, Indebtedness of such Unrestricted Subsidiary (other than a guarantee
of Indebtedness of the Borrower or any Restricted Subsidiary which is
non-recourse to the Borrower and the Restricted Subsidiaries) (i) as to which
neither the Borrower nor any Restricted Subsidiary is directly or indirectly
liable (by virtue of the Borrower or any such Restricted Subsidiary being the
primary obligor on, guarantor of, or otherwise liable in any respect to, such
Indebtedness) and (ii) which, upon the occurrence of a default with respect
thereto, does not result in, or permit any holder of any Indebtedness of the
Borrower or any Restricted Subsidiary to declare a default on such Indebtedness
of the Borrower or any Restricted Subsidiary or cause the payment thereof to be
accelerated or payable prior to its stated maturity.
"Voting Equity Interests" means, with respect to any Person, all classes of
Equity Interest or other interests (including partnership interests) of such
Person then outstanding and normally entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof.
"Voting Stock" means the total voting power of all classes of capital stock
then outstanding of the Borrower and normally entitled (without regard to the
occurrence of any contingency) to vote in elections of directors of the
Borrower.
"Warrant Agreement" means that certain Warrantholders' Agreement, dated as
of June 6, 1995 among the Borrower, the Management Stockholders and the
Investors, as amended by that certain First Amendment to the Warrantholders'
Agreement (the "First Amendment to Warrant Agreement"), dated as of May 19, 1997
and as otherwise amended from time to time with the consent of the Lenders to
the extent required pursuant to the Standstill Agreement.
"Warrant Certificates" means those certain warrant certificates issued to
the Investors pursuant to the Securities Purchase Agreement and the Exchange
Agreement which warrant certificates were replaced by replacement certificates
(entitled "Amended and Restated Warrants") issued in connection with the First
Amendment to Warrant Agreement and any and all other warrant certificates issued
in replacement or substitution therefor.
"Warrantholders" means the holders of Warrants issued pursuant to the
Securities Purchase Agreement and the Exchange Agreement or shares of Common
Equity issued in exchange therefor.
32
"Warrantholders' Pledge" has the meaning set forth in the definition of
Pledge Agreements.
"Warrants" means those certain Series B Amended and Restated Warrants and
those certain Series A Amended and Restated Warrants given in replacement for
the warrants issued to the Investors pursuant to the Securities Purchase
Agreement and the Exchange Agreement, to purchase an aggregate of 147.04 shares
of the Common Equity of the Borrower on a fully diluted basis subject to the
terms and provisions of the Warrant Certificates.
"Wholly Owned Restricted Subsidiary" means each Restricted Subsidiary which
is a Wholly Owned Subsidiary.
"Wholly Owned Subsidiary" has the meaning set forth in the definition of
Subsidiary.
1.2 Other Definitional Provisions.
(a Unless otherwise specified therein, all terms defined in this Agreement
shall have the same defined meanings when used in the Notes or other Loan
Documents.
(b As used in any Loan Document, accounting terms relating to the Borrower
and its Subsidiaries not defined in Section 1.1 and accounting terms partly
defined in Section 1.1, to the extent not defined, shall have the respective
meanings given to them under GAAP.
(c The words "hereof", "herein", "hereto" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement and Section,
Schedule and Exhibit references are to this Agreement unless otherwise
specified.
(d The meanings given to terms defined in any Loan Document shall be
equally applicable to both the singular and plural forms of such terms.
(e Unless stipulated otherwise (i) all references in any of the Loan
Documents to "dollars", "money", "payments" or other similar financial or
monetary terms, are references to currency of the United States of America and
(ii) all references to interest are to simple not compound interest.
(f The headings and captions used in any of the Loan Documents are for
convenience only and shall not be deemed to limit, amplify or modify the terms
of the Loan Documents nor affect the meaning thereof.
33
(g References in this Agreement or any other Loan Document to knowledge by
the Borrower or any Subsidiary of events or circumstances shall be deemed to
refer to events or circumstances of which any Responsible Officer has actual
knowledge or reasonably should have knowledge.
(h References in this Agreement or any other Loan Document to financial
statements shall be deemed to include all related schedules and notes thereto.
1.3 Computation of Time Periods. For purposes of computation of periods of
time hereunder, the word "from" means "from and including" and the words "to"
and "until" each mean "to but excluding".
SECTION 2.
AMOUNT AND TERMS OF COMMITMENTS
2.1 Commitments. (a) Subject to and in reliance upon the terms, conditions,
representations and warranties contained in the Loan Documents, each Lender
severally agrees to make Loans under its Available Commitment to the Borrower
from time to time until the Termination Date ("Loans"), provided that in no
event shall the Aggregate Outstandings of Credit of any Lender at any time
exceed such Lender's Commitment. Until the Termination Date, the Borrower may
use the Available Commitments by borrowing, prepaying the Loans in whole or in
part, and reborrowing, all in accordance with the terms and conditions hereof.
(b) The Loans may from time to time be (i) Eurodollar Loans, (ii) ABR Loans
or (iii) a combination thereof, as determined by the Borrower and notified to
the Agent in accordance with Sections 2.3 and 4.5, provided that no Loan shall
be made as a Eurodollar Loan after the day that is one month prior to the
Termination Date.
(c) In order to evidence the Loans, the Borrower will execute and deliver
to each Lender a promissory note substantially in the form of Exhibit H, with
appropriate insertions as to payee, date and principal amount (each, as amended,
supplemented, replaced or otherwise modified from time to time, a "Note"),
payable to the order of each Lender and in a principal amount equal to each such
Lender's Commitment. Each Note shall (x) be dated the Effective Date or the date
of any reissuance of such Note, (y) be stated to mature on the Termination Date
and (z) provide for the payment of interest in accordance with Section 4.1.
2.2 Intentionally Deleted.
2.3 Procedure for Borrowing. Subject to the applicable terms and conditions
contained in Section 6 of this Agreement, the Borrower may borrow under the
Commitments at any
34
time prior to the Termination Date, on any Business Day by delivery to the Agent
of an irrevocable notice substantially in the form of Exhibit I (a "Notice of
Borrowing"). A Notice of Borrowing must be received by the Agent prior to 11:00
A.M., New York, New York time, (a) three Business Days prior to the requested
Borrowing Date, if all or any part of the requested Loans are to be initially
Eurodollar Loans, or (b) on the requested Borrowing Date. A Notice of Borrowing
shall specify (i) the amount to be borrowed, (ii) the requested Borrowing Date,
(iii) whether the borrowing is to be of Eurodollar Loans, ABR Loans or a
combination thereof and (iv) if the borrowing is to be entirely or partly of
Eurodollar Loans, the respective amounts of each Eurodollar Tranche and the
respective lengths of the initial Interest Periods therefor. Borrowings under
the Commitments shall be in an amount equal to (x) in the case of ABR Loans,
$500,000 or a whole multiple of $100,000 in excess thereof (or, if the then
available amount of the Commitments is less than $500,000, such lesser amount)
and (y) in the case of Eurodollar Loans, $1,000,000 or a whole multiple of
$100,000 in excess thereof. Upon receipt of any such Notice of Borrowing from
the Borrower, the Agent shall promptly notify each Lender thereof. Each such
Lender will make the amount of its pro rata share of each applicable borrowing
available to the Agent for the account of the Borrower at the office of the
Agent specified as the Funding Office in Schedule 1.1 prior to 1:00 P.M., New
York, New York time, on the Borrowing Date requested by the Borrower in funds
immediately available to the Agent. Such borrowing will then be made available
to the Borrower by the Agent crediting the account of the Borrower as so
directed by the Borrower in a Notice of Borrowing with the aggregate of the
amounts made available to the Agent by the Lenders and in like funds as received
by the Agent.
2.4 Repayment of Loans. (a) The Borrower hereby unconditionally promises to
pay to the Agent for the account of each Lender, (i) the then unpaid principal
amount of each Loan of such Lender on the Termination Date (or such earlier date
on which the Loans become due and payable pursuant to Section 9) and (ii) the
amounts specified in Section 4.2 on the dates specified in Section 4.2. The
Borrower hereby further agrees to pay interest on the unpaid principal amount of
the Loans from time to time outstanding until payment in full thereof at the
rates per annum, and on the dates, set forth in Section 4.1.
(b) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing indebtedness of the Borrower to such Lender
resulting from each Loan of such Lender from time to time, including the amounts
of principal and interest payable and paid to such Lender from time to time
under this Agreement.
(c) The Agent shall maintain the Register pursuant to Section 11.6(g), and
a subaccount therein for each Lender, in which shall be recorded (i) the amount
of each Loan made hereunder the type thereof and each Interest Period, if any,
applicable thereto, (ii) the amount of any principal or interest due and payable
or to become due and payable from the Borrower to each Lender hereunder and
(iii) both the amount of any sum received by the Agent hereunder from the
Borrower and each Lender's share thereof.
35
(d) The entries made in the Register and the accounts of each Lender
maintained pursuant to Section 11.6(g) shall, to the extent permitted by
applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrower therein recorded; provided, however, that the
failure of any Lender or the Agent to maintain the Register or any such account,
shall not in any manner affect the obligation of the Borrower to repay (with
applicable interest) the Loans made to the Borrower by such Lender in accordance
with the terms of this Agreement.
SECTION 3. LETTERS OF CREDIT
3.1 L/C Commitment. (a) Subject to the terms and conditions hereof, Issuing
Lender, in reliance on the agreements of the other Lenders set forth in Section
3.4(a), agrees to issue letters of credit ("Letters of Credit") for the account
of the Borrower on any Business Day in such customary form as may be approved
from time to time by such Issuing Lender; provided that Issuing Lender shall not
issue any Letter of Credit if, after giving effect to such issuance, the L/C
Obligations would exceed the lesser of (x) $5,000,000 or (y) the Total Available
Commitment at such time. Each Letter of Credit shall (i) be denominated in
Dollars and (ii) expire no later than the earlier of (x) the Termination Date
and (y) the date which is 12 months after its date of issuance.
(b) Each Letter of Credit shall be subject to the Uniform Customs and, to
the extent not inconsistent therewith, the laws of the State of New York.
(c) The Issuing Lender shall not at any time be obligated to issue any
Letter of Credit hereunder if such issuance would conflict with, or cause the
Issuing Lender or any other Lender to exceed any limits imposed by, any
applicable Requirement of Law.
3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time
to time request that the Issuing Lender issue a Letter of Credit by delivering
to the Issuing Lender, at the office of the Issuing Lender specified in Section
11.2, an application therefor, completed to the reasonable satisfaction of the
Issuing Lender, and such other certificates, documents and other papers and
information as the Issuing Lender may reasonably request. Upon receipt of any
Application, the Issuing Lender will process such Application and the
certificates, documents and other papers and information delivered to it in
connection therewith in accordance with its customary procedures and shall
promptly issue the Letter of Credit requested thereby (but in no event shall the
Issuing Lender be required to issue any Letter of Credit earlier than three
Business Days after its receipt of the Application therefor and all such other
certificates, documents and other papers and information relating thereto) by
issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed by the Issuing Lender and the Borrower. The Issuing
Lender shall furnish a copy of such Letter of Credit to the Borrower promptly
following the issuance thereof.
3.3 Fees, Commissions and Other Charges. (a) The Borrower shall pay to the
Issuing Lender, for the account of each Lender, a letter of credit fee with
respect to each Letter of
36
Credit, for the period from and including the date of issuance of such Letter of
Credit to the date such Letter of Credit is no longer outstanding, computed at a
percentage rate per annum equal to the Applicable Margin from time to time
applicable to Loans bearing interest at the Eurodollar Rate, calculated on the
basis of a 360-day year, on the aggregate average daily amount available to be
drawn under such Letter of Credit for the period as to which payment of such fee
is made. Such letter of credit fee shall be payable on each L/C Fee Payment Date
occurring while a Letter of Credit remains outstanding and on the date each
Letter of Credit expires, is canceled or is drawn upon. Such letter of credit
fee once paid shall be nonrefundable.
(b) The Borrower shall pay to the Issuing Lender, a letter of credit fee
with respect to each Letter of Credit equal to 1/4 of 1% per annum on the face
amount of each such Letter of Credit, payable on each Interest Payment Date (for
an ABR Loan) to the Issuing Lender for its own account. Such fee once paid shall
be nonrefundable.
(c) In addition, the Borrower shall pay customary administrative, issuance,
amendment, payment and negotiation charges to the Issuing Lender for its own
account.
3.4 L/C Participations. (a) The Issuing Lender irrevocably agrees to grant
and hereby grants to each Lender, and, to induce the Issuing Lender to issue
Letters of Credit hereunder, each Lender irrevocably agrees to accept and
purchase and hereby accepts and purchases from the Issuing Lender, for such
Lender's own account and risk an undivided interest equal to such Lender's
Specified Percentage in the Issuing Lender's obligations and rights under each
Letter of Credit issued by the Issuing Lender and the amount of each draft paid
by the Issuing Lender thereunder. Each Lender unconditionally and irrevocably
agrees with the Issuing Lender that, if a draft is paid under any Letter of
Credit issued by the Issuing Lender for which the Issuing Lender is not
reimbursed in full by the Borrower in accordance with Section 3.5(a), such
Lender shall pay to the Issuing Lender upon demand at the office of the Issuing
Lender specified in Schedule 1.1 an amount equal to such Lender's Specified
Percentage of the amount of such draft, or any part thereof, which is not so
reimbursed.
(b) If any amount required to be paid by any Lender to the Issuing Lender
pursuant to this Section 3.4 in respect of any unreimbursed portion of any
payment made by the Issuing Lender under any Letter of Credit is paid to the
Issuing Lender within three Business Days after the date such payment is due,
such Lender shall pay to the Issuing Lender on demand an amount equal to the
product of (i) such amount, times (ii) the daily average Federal Funds Effective
Rate during the period from and including the date such payment is required to
the date on which such payment is immediately available to the Issuing Lender,
times (iii) a fraction the numerator of which is the number of days that elapse
during such period and the denominator of which is 360. If any such amount
required to be paid by any Lender pursuant to this Section 3.4 is not in fact
made available to the Issuing Lender by such Lender within three Business Days
after the date such payment is due, the Issuing Lender shall be entitled to
recover from such Lender, on demand, such amount with interest thereon
calculated from and including the date such payment is required to the
date on which such payment is immediately available to the Issuing Lender at a
rate per annum equal to the ABR plus the Applicable Margin. A certificate of the
Issuing Lender submitted to any Lender with respect to any amounts owing under
this Section shall be conclusive in the absence of manifest error.
(c) Whenever, at any time after the Issuing Lender has made payment under
any Letter of Credit and has received from any Lender its pro rata share of such
payment in accordance with this Section 3.4, the Issuing Lender receives any
payment related to such Letter of Credit (whether directly from the Borrower or
otherwise, including proceeds of Collateral applied thereto by the Issuing
Lender), or any payment of interest on account thereof, the Issuing Lender will,
if such payment is received prior to 12:00 P.M., New York, New York time, on a
Business Day, distribute to such Lender its pro rata share thereof on the same
Business Day or if received later than 12:00 P.M. on the next succeeding
Business Day; provided, however, that in the event that any such payment
received by the Issuing Lender shall be required to be returned by the Issuing
Lender, such Lender shall return to the Issuing Lender the portion thereof
previously distributed by the Issuing Lender to it.
(d) Notwithstanding anything to the contrary in this Agreement, each
Lender's obligation to make the Loans referred to in Section 3.5(b) and to
purchase and fund participating interests pursuant to Section 3.4(a) shall be
absolute and unconditional and shall not be affected by any circumstance,
including, without limitation, (i) any setoff, counterclaim, recoupment, defense
or other right which such Lender or the Borrower may have against the Issuing
Lender, the Borrower or any other Person for any reason whatsoever, (ii) the
occurrence or continuance of a Default or an Event of Default or the failure to
satisfy any of the other conditions specified in Section 6, (iii) any adverse
change in the condition (financial or otherwise) of any Loan Party, (iv) any
breach of this Agreement or any other Loan Document by any Loan Party or any
Lender, or (v) any other circumstance, happening or event whatsoever, whether or
not similar to any of the foregoing.
3.5 Reimbursement Obligation of the Borrower. (a) The Borrower agrees to
reimburse the Issuing Lender (it being understood that such reimbursement shall
be effected by means of a borrowing of Loans unless the Agent shall determine in
its sole discretion that such Loans may not be made for such purpose as a result
of a Default or Event of Default pursuant to Section 9(f)), upon receipt of
notice from the Issuing Lender of the date and amount of a draft presented under
any Letter of Credit and paid by the Issuing Lender, for the amount of (i) such
draft so paid and (ii) any taxes, fees, charges or other costs or expenses
incurred by the Issuing Lender in connection with such payment. Each such
payment shall be made to the Issuing Lender, at the office of the Issuing Lender
specified in Schedule 1.1 in Dollars and in immediately available funds, on the
date on which the Borrower receives such notice, if received prior to 12:00
P.M., New York, New York time, on a Business Day and otherwise on the next
succeeding Business Day.
(b) Interest shall be payable on any and all amounts remaining unpaid by
the Borrower under this Section 3.5, (i) from the date the draft under the
affected Letter of Credit is paid
38
by the Issuing Bank to the date on which the Borrower is required to pay such
amounts pursuant to paragraph (a) above at a rate per annum equal to the ABR
plus the Applicable Margin and (ii) thereafter until payment in full at the rate
which would be payable on any Loans which were then overdue. Except as otherwise
specified in Section 3.5(a), each drawing under any Letter of Credit shall
constitute a request by the Borrower to the Agent for a borrowing of Loans that
are ABR Loans pursuant to Section 2.3 in the amount of such drawing. The
Borrowing Date with respect to such borrowing shall be the date of payment of
such drawing and the proceeds of such Loans shall be applied by the Agent to
reimburse the Issuing Lender for the amounts paid under such Letter of Credit.
3.6 Obligations Absolute. Subject to the penultimate sentence of this
Section 3.6, the Borrower's obligations under this Section 3 shall be absolute
and unconditional under any and all circumstances and irrespective of any
set-off, counterclaim or defense to payment which the Borrower may have or have
had against the Issuing Lender, any Lender or any beneficiary of a Letter of
Credit. The Borrower also agrees with the Issuing Lender that the Issuing Lender
and the Lenders shall not be responsible for, and the Borrower's Reimbursement
Obligations under Section 3.5 shall not be affected by, among other things, (i)
the validity or genuineness of documents or of any endorsements thereon, even
though such documents shall in fact prove to be invalid, fraudulent or forged,
or (ii) any dispute between or among the Borrower and any beneficiary of any
Letter of Credit or any other party to which such Letter of Credit may be
transferred or (iii) any claims whatsoever of the Borrower against any
beneficiary of such Letter of Credit or any such transferee. So long as the
Issuing Lender acts in accordance with the standards of care specified in the
Uniform Commercial Code of the State of New York, the Issuing Lender and the
Lenders shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however
transmitted, in connection with any Letter of Credit, except for errors or
omissions caused by such Person's gross negligence or willful misconduct. The
Borrower agrees that any action taken or omitted by the Issuing Lender under or
in connection with any Letter of Credit or the related drafts or documents, if
done in the absence of gross negligence or willful misconduct and in accordance
with the standards of care specified in the Uniform Commercial Code of the State
of New York, shall be binding on the Borrower and shall not result in any
liability of either the Issuing Lender or any Lender to the Borrower.
3.7 Letter of Credit Payments. If any draft shall be presented for payment
under any Letter of Credit, the Issuing Lender shall promptly notify the
Borrower and the Lenders of the date and amount thereof. Subject to Section 3.6,
the responsibility of the Issuing Lender to the Borrower in connection with any
draft presented for payment under any Letter of Credit shall, in addition to any
payment obligation expressly provided for in such Letter of Credit, be limited
to determining that the documents (including each draft) delivered under such
Letter of Credit in connection with such presentment appear on their face to be
in conformity with such Letter of Credit.
39
3.8 Application. To the extent that any provision of any Application
related to any Letter of Credit is inconsistent with the provisions of this
Agreement, the provisions of this Agreement shall apply.
SECTION 4. GENERAL PROVISIONS APPLICABLE TO LOANS
AND LETTERS OF CREDIT
4.1 Interest Rates and Payment Dates. (a) Subject to Section 11.15, each
Eurodollar Loan shall bear interest for each day during each Interest Period
with respect thereto at a rate per annum equal to the Eurodollar Rate plus the
Applicable Margin determined for such day.
(b) Subject to Section 11.15, each ABR Loan shall bear interest for each
day that it is outstanding at a rate per annum equal to the ABR plus the
Applicable Margin for such day.
(c) (i) Subject to Section 11.15, after the occurrence and during the
continuance of an Event of Default under Section 9(a) of this Agreement, all
Loans and Reimbursement Obligations shall bear interest at a rate per annum
which is equal to (x) in the case of the Loans, the rate that would otherwise be
applicable thereto pursuant to the foregoing provisions of this Section 4.1 plus
2% or (y) in the case of Reimbursement Obligations, at a rate per annum equal to
the ABR plus the Applicable Margin plus 2% and (ii) if all or a portion of any
interest payable on any Loan or Reimbursement Obligation or any commitment fee,
letter of credit fee or other amount payable hereunder shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest at a rate per annum equal to the ABR plus the
Applicable Margin plus 2%, in each case, with respect to clauses (i) and (ii)
above, from the date of such non-payment until such amount is paid in full (as
well after as before judgment).
(d) Interest shall be payable in arrears on each Interest Payment Date,
provided that interest accruing pursuant to paragraph (c) of this Section shall
be payable from time to time on demand.
40
4.2 Optional and Mandatory Commitment Reductions and Prepayments. (a) The
Borrower may at any time and from time to time prepay the Loans, in whole or in
part, without premium or penalty (it being understood that amounts payable
pursuant to Section 4.11 do not constitute premium or penalty), upon at least
three Business Days' irrevocable notice to the Agent (in the case of Eurodollar
Loans) or at least one Business Day's irrevocable notice to the Agent (in the
case of ABR Loans), specifying the date and amount of prepayment and whether the
prepayment is of Eurodollar Loans, ABR Loans or a combination thereof, and, in
each case if a combination thereof, the principal amount allocable to each. Upon
the receipt of any such notice the Agent shall promptly notify each Lender
thereof. If any such notice is given, the amount specified in such notice shall
be due and payable on the date specified therein, together with (if a Eurodollar
Loan is prepaid other than at the end of the Interest Period applicable thereto)
any amounts payable pursuant to Section 4.11. Partial prepayments of Loans shall
be in an aggregate principal amount of $500,000 or a whole multiple of $100,000
in excess thereof (unless the entire balance thereof is being prepaid).
(b) The Borrower shall have the right, upon not less than three Business
Days' notice to the Agent (which will promptly notify the Lenders thereof), to
terminate the Commitments or, from time to time, to reduce the amount of the
Commitments; provided that no such termination or reduction of the Commitments
shall be permitted if, after giving effect thereto and to any prepayments of the
Loans made on the effective date thereof, (x) the sum of the Aggregate
Outstandings of Credit of all Lenders would exceed the Total Available
Commitment then in effect. Any such reduction in the Commitments shall be in a
minimum amount of $1,000,000 or a whole multiple of $500,000 in excess thereof
(unless the Aggregate Commitment is being terminated) and shall reduce
permanently the Commitments then in effect.
(c) If at any time the sum of the Aggregate Outstandings of Credit of all
Lenders exceeds the Total Available Commitment then in effect, the Borrower
shall, without notice or demand, immediately repay the Loans in an aggregate
principal amount equal to such excess, together with interest accrued to the
date of such payment or repayment and any amounts payable under Section 4.11. To
the extent that, after giving effect to any prepayment of the Loans required by
the preceding sentence, the sum of the L/C Obligations still exceeds the Total
Available Commitment (the amount of such excess being herein referred to as the
"Overfunded Amount"), the Borrower shall, without notice or demand, immediately
pay an amount equal to such Overfunded Amount to the Agent for deposit in the
Cash Collateral Account. Any amounts deposited in the Cash Collateral Account
shall be invested in Cash Equivalents having a one day maturity or such other
Cash Equivalents as shall be acceptable to the Agent and the Borrower.
(d) Concurrently with the consummation of any Disposition or the receipt of
Net Proceeds from any Recovery Event by the Borrower or any Restricted
Subsidiary, the Borrower shall cause the Net Proceeds therefrom to be promptly
paid to the Agent, in immediately available funds, for deposit in an account
maintained by the Agent for the benefit of the Lenders (the "Cash Collateral
Account"), which Net Proceeds shall be held by the Agent in such Cash Collateral
Account as security for the Obligations, in accordance with Section 4.2(h), and
shall be distributed
41
by the Agent pursuant to this Section 4.2(d) and Section 4.2(i). In the event
that the Borrower and/or a Restricted Subsidiary (i) in the case of a Recovery
Event, uses the Net Proceeds therefrom to restore or replace assets in respect
of which a Recovery Event has occurred within 360 days after the date of receipt
of the Net Proceeds from such Recovery Event (the "Recovery Reinvestment
Deadline"), or (ii) in the case of a Disposition, subject to the provisions of
Sections 8.7 and 8.8, (A) enters into a binding contract for the reinvestment of
such Net Proceeds in Broadcast Assets within 270 days after the date of such
Disposition (the "Contract Deadline Date") and (B) actually reinvests such Net
Proceeds in Broadcast Assets within 360 days after the date of such Disposition
(the "Reinvestment Deadline Date"), then the Agent shall release from the Cash
Collateral Account (concurrently with the consummation of the applicable
reinvestment transaction) that portion of such Net Proceeds which are to be used
by the Borrower for such reinvestment transaction, provided such reinvestment
occurs on or before the Recovery Reinvestment Deadline or the Reinvestment
Deadline Date, as applicable. In the event that either (i) in the case of a
Recovery Event, the Borrower and/or a Restricted Subsidiary does not restore or
replace assets in respect of which a Recovery Event has occurred on or before
the Recovery Reinvestment Deadline or (ii) in the case of a Disposition, the
Borrower and/or a Restricted Subsidiary (A) does not enter into a binding
contract for the reinvestment of such Net Proceeds in Broadcast Assets on or
before the Contract Deadline Date or (B) does not actually reinvest such Net
Proceeds on or before the Reinvestment Deadline Date (any such Net Proceeds, or
portion thereof, not so used to restore or replace assets by the Recovery
Reinvestment Deadline, not subject to a binding contract on the Contract
Deadline Date or not so reinvested on the Reinvestment Deadline Date being
herein referred to as "Excess Proceeds"), then (x) the Agent shall, on the
Recovery Reinvestment Deadline, Contract Deadline Date or the Reinvestment
Deadline Date, as the case may be, apply all Excess Proceeds held in the Cash
Collateral Account toward the repayment of the Loans, together with interest
accrued to the date of such payment and any amounts payable under Section 4.11
and (y) the then Aggregate Commitment shall be permanently reduced on such
applicable date by an amount equal to the aggregate amount of such Excess
Proceeds. In addition, to the extent that, after giving effect to any repayment
of the Loans and reduction of the Aggregate Commitment required by the preceding
sentence, the sum of the Aggregate Outstandings of Credit of all Lenders exceeds
the Total Available Commitment (as reduced), then (in addition to the Borrower's
obligations under Section 4.2(c) above) any amounts remaining of such Excess
Proceeds shall continue to be held by the Agent in the Cash Collateral Account.
Notwithstanding the foregoing provisions of this Section 4.2(d), the Borrower
and the Restricted Subsidiaries shall not be required to apply any Net Proceeds
in accordance with this Section 4.2(d) unless or until such Net Proceeds either
singularly or when aggregated with all other Net Proceeds from all Dispositions
and Recovery Events exceeds $1,000,000. Notwithstanding anything to the contrary
set forth herein, in the event (i) a Default or Event of Default exists and is
continuing or (ii) the aggregate Excess Proceeds realized since May 19, 1997
equals or exceeds $4,750,000, then (A) any and all Net Proceeds received on or
after such events by the Borrower or any Restricted Subsidiary shall be
immediately paid to the Agent for deposit in the Cash Collateral Account and the
Agent shall apply all such Net Proceeds toward the repayment of the Loans and to
cash collateralize the L/C Obligations as aforesaid and (B) the then Aggregate
Commitment shall
42
be permanently reduced by an amount equal to the amount of all such Net Proceeds
received on or after such events.
(e) In the event that the Borrower or any Restricted Subsidiary issues or
sells any Equity Interests of the Borrower or a Restricted Subsidiary (other
than Disqualified Stock or Senior Preferred Stock issued in respect of the
Allied Warrant), then no later than the third Business Day following the date of
receipt of the cash proceeds from any such issuance or sale of such Equity
Interests (other than proceeds from the issuance or sale of such Equity
Interests to the Borrower or any Wholly Owned Restricted Subsidiary of the
Borrower by any Person that was a Restricted Subsidiary of the Borrower
immediately prior to such issuance), the Borrower shall repay the Loans in an
amount equal to the cash proceeds of such Equity Interests, net of underwriting
discounts and commissions and other reasonable costs associated therewith (the
"Equity Proceeds"); provided that the Borrower shall not be required to repay
the Loans under this Section 4.2(e) with any such Equity Proceeds that (i) are
reinvested in Permitted Acquisitions or permitted Capital Expenditures by the
Borrower or a Restricted Subsidiary within 30 days of the receipt of such Equity
Proceeds or (ii) are received by the Borrower from the initial Public Equity
Offering.
(f) In the event that any Loan Party creates, incurs, acquires or issues
any Indebtedness or Disqualified Stock other than Indebtedness permitted under
Section 8.2, then no later than the third Business Day following the date of
receipt of the proceeds (the "Debt Proceeds") from the creation, incurrence,
acquisition or issuance of any such Indebtedness or Disqualified Stock, the
Borrower shall (i) repay the Loans in an amount equal to the amount of such Debt
Proceeds and (ii) the then Aggregate Commitment shall be permanently reduced by
the amount of such Debt Proceeds. To the extent that, after giving effect to any
repayment of the Loans and reduction of the Aggregate Commitment required by the
preceding sentence, the sum of the Aggregate Outstandings of Credit of all
Lenders exceeds the Total Available Commitment (as reduced), then (in addition
to the Borrower's obligations under Section 4.2(c) above) any amounts remaining
of such Debt Proceeds shall be deposited in the Cash Collateral Account.
(g) In the case of any reduction of the Aggregate Commitment, the Borrower
shall, if applicable, comply with the requirements of Section 4.2(c). The
application of any prepayment to the Loans pursuant to this Section 4.2 shall be
made first to ABR Loans and second to Eurodollar Loans. Each repayment of the
Loans under this Section 4.2 shall be accompanied by accrued interest to the
date of such repayment on the amount repaid and any amounts payable under
Section 4.11.
(h) As security for the Obligations, the Borrower hereby grants, conveys,
assigns, pledges, sets over and transfers to the Agent, for the benefit of the
Lenders, and creates in the Agent's favor for the benefit of the Lenders, a
security interest in, all money (including interest), instruments and securities
at any time held in or acquired in connection with the Cash Collateral Account
together with all proceeds thereof. The Cash Collateral Account shall be under
the sole dominion and control of the Agent, and the Borrower shall not have any
right to withdraw or cause the Agent
43
to withdraw any funds deposited in the Cash Collateral Account except as
provided in Sections 4.2(d) and 4.2(i). At any time and from time to time, upon
the Agent's request, the Borrower promptly shall execute and deliver any and all
such further agreements, documents, instruments and certificates, including
financing statements, as may be necessary, appropriate or desirable in the
Agent's reasonable judgment to obtain the full benefits (including perfection
and priority) of the security interest created or intended to be created by this
Section 4.2(h) and of the rights and powers herein granted. The Borrower shall
not create or suffer to exist any Lien on any amounts or investments held in the
Cash Collateral Account other than the Lien granted under this Section 4.2(h).
(i) The Agent shall, after the date on which the Aggregate Commitment shall
have been terminated, apply any proceeds held in the Cash Collateral Account
first to pay any unpaid Obligations then outstanding hereunder in such order as
the Agent may determine and then to refund any remaining amount to the Borrower.
4.3 Commitment Fees, etc. (a) The Borrower agrees to pay to the Agent for
the account of each Lender, a commitment fee, on the average daily amount of the
Available Commitment of such Lender computed at a rate per annum based on the
Leverage Ratio in effect for the fiscal quarter (for which financial statements
are available) preceding the payment date determined as follows:
--------------------------------------- ----------------
Leverage Ratio Commitment Fee
--------------------------------------- ----------------
Greater than 5.00 to 1.00 0.500%
--------------------------------------- ----------------
Less than or equal to 5.00 to 1.00 but
greater than 4.00 to 1.00 0.375%
--------------------------------------- ----------------
Less than or equal to 4.00 to 1.00 0.250%
--------------------------------------- ----------------
44
For purposes of calculating the commitment fee due hereunder, the Leverage Ratio
shall be determined as at the end of each of the first three quarterly periods
of each fiscal year of the Borrower and as at the end of each fiscal year of the
Borrower, based on the relevant financial statements delivered pursuant to
Section 7.1(a) or (b) and the Compliance Certificate delivered pursuant to
Section 7.2(b); changes in the Leverage Ratio shall become effective on the date
which is the earlier of (i) two Business Days after the date the Agent receives
such financial statements and the corresponding Compliance Certificate and (ii)
the 45th day after the end of each of the first three quarterly periods of each
fiscal year or the 90th day after the end of each fiscal year, as the case may
be, and shall remain in effect until the next change to be effected pursuant to
this Section 4.3; provided, that (a) until the first such financial statements
and Compliance Certificate are delivered after the Effective Date, the
commitment fee shall be determined by reference to the Leverage Ratio set forth
in the Compliance Certificate delivered to the Agent pursuant to Section 6.2(h),
and (b) if any financial statements or the Compliance Certificates referred to
above are not delivered within the time periods specified above, then, for the
period from and including the date on which such financial statements and
Compliance Certificate are required to be delivered until the date on which such
financial statements and Compliance Certificate are delivered, the commitment
fee as at the end of the fiscal period that would have been covered thereby
shall be deemed to be the commitment fee which would be applicable when the
Leverage Ratio is greater than 6.50 to 1.00. Notwithstanding anything to the
contrary contained herein, during the fiscal quarter in which the Borrower
closes its initial Public Equity Offering, the Borrower shall have the right to
resubmit to the Agent and each Lender a new Compliance Certificate which
recalculates the "Indebtedness" component of the Leverage Ratio as of such date
and, to the extent there is a change in the Leverage Ratio reflected therein, a
new commitment fee for the then occurring fiscal quarter shall begin to accrue,
effective two Business Days after the date the Agent receives such new
Compliance Certificate and shall remain in effect until the next change to be
effected pursuant to this definition.
Such commitment fee shall be (i) payable quarterly in arrears on the last
Business Day of each March, June, September and December and on the Termination
Date and (ii) fully earned and non-refundable upon payment thereof.
(b) The Borrower shall pay (without duplication of any fee payable under
Section 4.3(a)) to the Agent the fees provided for in the Fee Letter on the
dates and in the amounts provided for therein.
4.4 Computation of Interest and Fees. (a) Interest based on the Eurodollar
Rate and fees shall be calculated on the basis of a 360-day year for the actual
days elapsed; and interest based on the ABR shall be calculated on the basis of
a 365- (or 366-, as the case may be) day year for the actual days elapsed. The
Agent shall as soon as practicable notify the Borrower and the Lenders of each
determination of a Eurodollar Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR or the Eurocurrency Reserve Requirements
shall become effective as of the opening of business on the day on which such
change becomes effective. The
45
Agent shall as soon as practicable notify the Borrower and the Lenders of the
effective date and the amount of each such change in interest rate.
(b) Each determination of an interest rate by the Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and
the Lenders in the absence of manifest error. The Agent shall, at the request of
the Borrower, deliver to the Borrower a statement showing in reasonable detail
the calculations used by the Agent in determining any interest rate pursuant to
Section 4.1 (a).
(c) The fees described in this Agreement and the Fee Letter represent
compensation for services rendered and to be rendered separate and apart from
the lending of money or the provision of credit and do not constitute
compensation for the use, detention, or forbearance of money, and the obligation
of the Borrower to pay each fee described herein shall be in addition to, and
not in lieu of, the obligation of the Borrower to pay interest, other fees
described in the Loan Documents, and expenses otherwise described in the Loan
Documents. Fees shall be payable when due in Dollars and in immediately
available funds. All such fees shall be non-refundable.
4.5 Conversion and Continuation Options. (a) The Borrower may elect from
time to time to convert Eurodollar Loans to ABR Loans by giving the Agent an
irrevocable notice substantially in the form of Exhibit J (a "Notice of
Conversion/Continuation"), by 11:00 A.M. New York, New York time at least one
Business Day prior to such election, provided that any such conversion of
Eurodollar Loans may only be made on the last day of an Interest Period with
respect thereto. The Borrower may elect from time to time to convert ABR Loans
to Eurodollar Loans or to continue Eurodollar Loans as Eurodollar Loans by
giving the Agent a Notice of Conversion/Continuation by 11:00 A.M. New York, New
York time at least three Business Days' prior to such election. Any such Notice
of Conversion/Continuation to Eurodollar Loans shall specify the length of the
initial Interest Period or Interest Periods therefor. Upon receipt of any such
Notice of Conversion/Continuation the Agent shall promptly notify each Lender
thereof. All or any part of outstanding Eurodollar Loans and ABR Loans may be
converted as provided herein, provided that (i) no Loan may be converted into a
Eurodollar Loan when any Event of Default has occurred and is continuing and
(ii) no Loan may be converted into a Eurodollar Loan if the Interest Period
selected therefor would expire after the Termination Date.
(b) Any Eurodollar Loans may be continued as such upon the expiration of
the then current Interest Period with respect thereto by the Borrower giving
irrevocable notice to the Agent, of the length of the next Interest Period to be
applicable to such Loans, determined in accordance with the applicable
provisions of the term "Interest Period" set forth in Section 1.1, provided that
no Eurodollar Loan may be continued as such (i) when any Event of Default has
occurred and is continuing or (ii) after the date that is one month prior to the
Termination Date, and provided, further, that if the Borrower shall fail to give
any required notice as described above in this paragraph or if such continuation
is not permitted pursuant to the preceding proviso such Loans shall be
automatically converted to ABR Loans on the last day of such then expiring
Interest Period.
46
Upon receipt of any such notice of continuation pursuant to this Section 4.5(b),
the Agent shall promptly notify each Lender thereof.
4.6 Minimum Amounts of Eurodollar Tranches. All borrowings, conversions,
continuations and payments of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant to such
elections so that, after giving effect thereto, the aggregate principal amount
of the Eurodollar Loans comprising (i) each Eurodollar Tranche of Loans shall be
equal to $1,000,000 or a whole multiple of $100,000 in excess thereof. In no
event shall there be more than six Eurodollar Tranches outstanding at any time.
4.7 Inability to Determine Interest Rate. If prior to the first day of any
Interest Period:
(a) the Agent shall have determined (which determination shall be made
in good faith and shall be conclusive and binding upon the Borrower absent
manifest error) that, by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining the
Eurodollar Rate for such Interest Period; or
(b) the Agent shall have received notice from the Majority Lenders
that the Eurodollar Rate determined or to be determined for such Interest
Period will not adequately and fairly reflect the cost to such Lenders (as
conclusively certified by such Lenders) of making, maintaining or
converting that portion of the outstanding principal balance of their
affected Loans during such Interest Period,
the Agent shall give facsimile notice thereof to the Borrower and the Lenders as
soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans
requested to be made on the first day of such Interest Period shall be made as
ABR Loans, (y) any Loans that were to have been converted on the first day of
such Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z)
any outstanding Eurodollar Loans shall be converted, on the first day of such
Interest Period, to ABR Loans. Until such notice has been withdrawn by the Agent
or the Majority Lenders, as the case may be, no further Eurodollar Loans shall
be made or continued as such, nor shall the Borrower have the right to convert
Loans to Eurodollar Loans.
4.8 Pro Rata Treatment and Payments. (a) Each borrowing of Loans hereunder
shall be made, each payment by the Borrower on account of any commitment fee
hereunder shall be allocated by the Agent, and any reduction of the Commitments
shall be allocated by the Agent, pro rata according to the respective Specified
Percentages of the Lenders. Each payment (including each prepayment) by the
Borrower on account of principal of and interest on, or commitment fees related
to, the Loans or Reimbursement Obligations shall be allocated by the Agent pro
rata according to the respective Specified Percentages of such Loans and
Reimbursement Obligations then held by the Lenders. All payments (including
prepayments) to be made by the Borrower hereunder and under any Notes, whether
on account of principal, interest, fees, Reimbursement
47
Obligations or otherwise, shall be made without set-off or counterclaim and
shall be made prior to 1:00 P.M., New York, New York time, on the due date
thereof to the Agent, for the account of the Lenders, at the Agent's office
specified in Section 11.2, in Dollars and in immediately available funds.
Payments received by the Agent after such time shall be deemed to have been
received on the next Business Day. If any payment hereunder becomes due and
payable on a day other than a Business Day, the maturity of such payment shall
be extended to the next succeeding Business Day, (and, with respect to payments
of principal, interest thereon shall be payable at the then applicable rate
during such extension) unless, with respect to payments of Eurodollar Loans
only, the result of such extension would be to extend such payment into another
calendar month, in which event such payment shall be made on the immediately
preceding Business Day.
(b) Unless the Agent shall have been notified in writing by any Lender
prior to a borrowing that such Lender will not make the amount that would
constitute its share of such borrowing available to the Agent, the Agent may
assume that such Lender is making such amount available to the Agent, and the
Agent may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. If such amount is not made available to the Agent by the
required time on the Borrowing Date therefor, such Lender shall pay to the
Agent, on demand, such amount with interest thereon at a rate equal to the daily
average Federal Funds Effective Rate for the period until such Lender makes such
amount immediately available to the Agent. A certificate of the Agent submitted
to any Lender with respect to any amounts owing under this Section 4.8 shall be
conclusive in the absence of manifest error. If such Lender's share of such
borrowing is not made available to the Agent by such Lender within three
Business Days of such Borrowing Date, the Agent shall notify the Borrower of the
failure of such Lender to make such amount available to the Agent and the Agent
shall also be entitled to recover, on demand from the Borrower, such amount with
interest thereon at a rate per annum equal to the ABR plus the Applicable Margin
in effect on the Borrowing Date.
4.9 Requirements of Law. (a) If the adoption of or any change in any
Requirement of Law or in the interpretation or application thereof or compliance
by any Lender with any request or directive (whether or not having the force of
law) from any central bank or other Governmental Authority made subsequent to
the Effective Date:
(i) shall subject any Lender to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any Note or any Eurodollar
Loan made by it, or change the basis of taxation of payments to such Lender
in respect thereof (except for Non-Excluded Taxes covered by Section 4.10,
net income taxes and franchise taxes (imposed in lieu of net income
taxes));
(ii) shall impose, modify or hold applicable any reserve, special
deposit, compulsory loan or similar requirement against assets held by,
deposits or other liabilities in or for the account of, advances, loans or
other extensions of credit by, or any other
48
acquisition of funds by, any office of such Lender which is not otherwise
included in the determination of the Eurodollar Rate; or
(iii) shall impose on such Lender any other condition;
and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining Eurodollar Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, within five Business Days
following receipt by the Borrower of notice from such Lender, through the Agent,
in accordance herewith, the Borrower shall pay such Lender such additional
amount or amounts as will compensate such Lender for such increased cost or
reduced amount receivable.
(b) If any Lender shall have determined in good faith that the adoption of
or any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the Effective Date shall have the effect of
reducing the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder to a level below that which such Lender
or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender's or such corporation's
policies with respect to capital adequacy) by an amount reasonably deemed by
such Lender to be material, then from time to time, the Borrower shall promptly
pay to such Lender such additional amount or amounts as will compensate such
Lender for such reduction.
(c) If any Lender becomes entitled to claim any additional amounts pursuant
to this Section 4.9, it shall promptly deliver a certificate to the Borrower
(with a copy to the Agent), setting forth in reasonable detail an explanation of
the basis for requesting such compensation. Such certificate as to any
additional amounts payable pursuant to this Section 4.9 submitted by such Lender
to the Borrower (with a copy to the Agent) shall be conclusive in the absence of
manifest error provided such determinations are made on a reasonable basis. The
Borrower shall pay each Lender the amount shown as due on any such certificate
delivered by it within 15 days after the Borrower's receipt thereof. The
agreements in this Section 4.9 shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.
4.10 Taxes. (a) All payments made by the Borrower under this Agreement and
any Notes shall be made free and clear of, and without deduction or withholding
for or on account of, any present or future income, stamp or other taxes,
levies, imposts, duties, charges, fees, deductions or withholdings, now or
hereafter imposed, levied, collected, withheld or assessed by any Governmental
Authority, excluding (i) net income taxes; (ii) franchise and doing business
taxes imposed on the Agent or any Lender as a result of a present or former
connection between the Agent or such Lender and the jurisdiction of the
Governmental Authority imposing such tax or any political subdivision or taxing
authority thereof or therein (other than any such connection arising solely from
49
the Agent or such Lender having executed, delivered or performed its obligations
or received a payment under, or enforced, this Agreement or any Note); (iii) any
Taxes, levies, imposts, deductions, charges or withholdings that are in effect
and that would apply to a payment to such Lender as of the Effective Date; and
(iv) if any Person acquires any interest in this Agreement or any Note pursuant
to the provisions hereof, including without limitation a participation (whether
or not by operation of law), or a foreign Lender changes the office in which the
Loan is made, accounted for or booked (any such Person or such foreign Lender in
that event being referred to as a "Tax Transferee"), any Taxes, levies, imposts,
deductions, charges or withholdings to the extent that they are in effect and
would apply to a payment to such Tax Transferee as of the date of the
acquisition of such interest or change in office, as the case may be. If any
such non-excluded taxes, levies, imposts, duties, charges, fees deductions or
withholdings ("Non-Excluded Taxes") are required to be withheld from any amounts
payable to the Agent or any Lender hereunder or under any Note, the amounts so
payable to the Agent or such Lender shall be increased to the extent necessary
to yield to the Agent or such Lender (after payment of all Non-Excluded Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, provided, however, that the Borrower shall
not be required to increase any such amounts payable to any Non-U.S. Lender if
such Lender fails to comply with the requirements of paragraph (b) of this
Section. Whenever any Non-Excluded Taxes are payable by the Borrower, as
promptly as possible thereafter the Borrower shall send to the Agent for its own
account or for the account of such Lender, as the case may be, a certified copy
of an original official receipt received by the Borrower showing payment
thereof. If, when the Borrower is required by this Section 4.10(a) to pay any
Non-Excluded Taxes, the Borrower fails to pay such Non-Excluded Taxes when due
to the appropriate taxing authority or fails to remit to the Agent the required
receipts or other required documentary evidence, the Borrower shall indemnify
the Agent and the Lenders for any incremental taxes, interest or penalties that
may become payable by the Agent or any Lender as a result of any such failure.
(b) Each Lender (or Transferee) that is not a citizen or resident of the
United States of America, a corporation, partnership or other entity created or
organized in or under the laws of the United States of America, or any estate or
trust that is subject to federal income taxation regardless of the source of its
income (a "Non-U.S. Lender") shall deliver to the Borrower and the Agent (or, in
the case of a Participant, to the Lender from which the related participation
shall have been purchased) two copies of either U.S. Internal Revenue Service
Form 1001 or Form 4224, or, in the case of a Non-U.S. Lender claiming exemption
from U.S. federal withholding tax under Section 871(h) or 881(c) of the Code
with respect to payments of "portfolio interest", a Form W-8, or any subsequent
versions thereof or successors thereto (and, if such Non-U.S. Lender delivers a
Form W-8, an annual certificate representing that such Non-U.S. Lender (i) is
not a "bank" for purposes of Section 881(c) of the Code (and is not subject to
regulatory or other legal requirements as a bank in any jurisdiction, and has
not been treated as a bank in any filing with or submission made to any
Governmental Authority or rating agency), (ii) is not a 10-percent shareholder
(within the meaning of Section 871(h)(3)(B) of the Code) of the Borrower and
(iii) is not a controlled foreign corporation related to the Borrower (within
the meaning of Section 864(d)(4) of the Code)), properly completed and duly
executed by such Non-U.S. Lender claiming complete exemption (or, in the case
50
of a Non-U.S. Lender entitled to a reduced treaty rate, a partial exemption)
from, U.S. federal withholding tax on all payments by the Borrower under this
Agreement and the other Loan Documents, along with such other additional forms
as the Borrower, the Agent (or, in the case of a Participant, the Lender from
which the related participation shall have been purchased) may reasonably
request to establish the availability of such exemption. Such forms shall be
delivered by each Non-U.S. Lender on or before the date it becomes a party to
this Agreement (or, in the case of any Participant, on or before the date such
Participant purchases the related participation). In addition, each Non-U.S.
Lender shall deliver such forms promptly upon the obsolescence or invalidity of
any form previously delivered by such Non-U.S. Lender. Each Non-U.S. Lender
shall promptly notify the Borrower at any time it determines that it is no
longer in a position to provide any previously delivered certificate to the
Borrower (or any other form of certification adopted by the U.S. taxing
authorities for such purpose). Notwithstanding any other provision of Section
4.10, a Non-U.S. Lender shall not be required to deliver any form pursuant to
this Section 4.10(b) that such Non-U.S. Lender is not legally able to deliver,
it being understood and agreed that, in the event that a Non-U.S. Lender fails
to deliver any forms otherwise required to be delivered pursuant to this Section
4.10(b), or notifies the Borrower that any previously delivered certificate is
no longer in force, the Borrower shall withhold such amounts as the Borrower
shall reasonably determine are required by law and shall not be required to make
any additional payment with respect thereto to the Non-U.S. Lender, unless such
failure to deliver or notify is a result of change in law subsequent to the
Effective Date.
(c) If a Lender (or Transferee) or the Agent shall become aware that it is
entitled to receive a refund in respect of Non-Excluded Taxes paid by the
Borrower, or as to which it has been indemnified by the Borrower, which refund
in the good faith judgment of such Lender (or Transferee) is allocable to such
payment made pursuant to this Section 4.10, it shall promptly notify the
Borrower of the availability of such refund and shall, within 30 days after
receipt of a request by the Borrower, apply for such refund. If any Lender (or
Transferee) or the Agent receives a refund in respect of any Non-Excluded Taxes
paid by the Borrower, or as to which it has been indemnified by the Borrower, it
shall promptly notify the Borrower of such refund and shall, within 15 days
after receipt, repay such refund to the Borrower. The agreements in this Section
4.10 shall survive the termination of this Agreement and the payment of the
Loans and all other amounts payable hereunder.
4.11 INDEMNITY. THE BORROWER AGREES TO INDEMNIFY EACH LENDER AND TO HOLD
EACH LENDER HARMLESS FROM ANY LOSS OR EXPENSE WHICH SUCH LENDER MAY SUSTAIN OR
INCUR AS A CONSEQUENCE OF (A) DEFAULT BY THE BORROWER IN MAKING A BORROWING OF,
CONVERSION INTO OR CONTINUATION OF EURODOLLAR LOANS AFTER THE BORROWER HAS GIVEN
A NOTICE REQUESTING THE SAME IN ACCORDANCE WITH THE PROVISIONS OF THIS
AGREEMENT, (B) DEFAULT BY THE BORROWER IN MAKING ANY PREPAYMENT OF EURODOLLAR
LOANS AFTER THE BORROWER HAS GIVEN A NOTICE THEREOF IN ACCORDANCE WITH THE
PROVISIONS OF THIS
51
AGREEMENT OR (C) THE MAKING OF A PREPAYMENT OF EURODOLLAR LOANS ON A DAY WHICH
IS NOT THE LAST DAY OF AN INTEREST PERIOD WITH RESPECT THERETO. SUCH
INDEMNIFICATION MAY INCLUDE AN AMOUNT EQUAL TO THE EXCESS, IF ANY, OF (I) THE
AMOUNT OF INTEREST WHICH WOULD HAVE ACCRUED ON THE AMOUNT SO PREPAID, OR NOT SO
BORROWED, CONVERTED OR CONTINUED, FOR THE PERIOD FROM THE DATE OF SUCH
PREPAYMENT OR OF SUCH FAILURE TO BORROW, CONVERT OR CONTINUE TO, BUT NOT
INCLUDING, THE LAST DAY OF SUCH INTEREST PERIOD (OR, IN THE CASE OF A FAILURE TO
BORROW, CONVERT OR CONTINUE, THE INTEREST PERIOD THAT WOULD HAVE COMMENCED ON
THE DATE OF SUCH FAILURE) IN EACH CASE AT THE APPLICABLE RATE OF INTEREST FOR
SUCH LOANS PROVIDED FOR HEREIN OVER (II) THE AMOUNT OF INTEREST (AS REASONABLY
DETERMINED BY SUCH LENDER) WHICH WOULD HAVE ACCRUED TO SUCH BANK ON SUCH AMOUNT
BY PLACING SUCH AMOUNT ON DEPOSIT FOR A COMPARABLE PERIOD WITH LEADING BANKS IN
THE INTERBANK EURODOLLAR MARKET. THIS COVENANT SHALL SURVIVE THE TERMINATION OF
THIS AGREEMENT AND THE PAYMENT OF THE LOANS AND ALL OTHER AMOUNTS PAYABLE
HEREUNDER.
4.12 Change of Lending Office. Each Lender agrees that if it makes any
demand for payment under Section 4.9 or 4.10(a), it will use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions and
so long as such efforts would not be disadvantageous to it, as determined in its
sole discretion) to designate a different lending office if the making of such a
designation would reduce or obviate the need for the Borrower to make payments
under Sections 4.9 or 4.10(a) or would eliminate or reduce the effect of any
adoption or change described in Section 4.9.
SECTION 5. REPRESENTATIONS AND WARRANTIES
To induce the Agent and the Lenders to enter into this Agreement and to
make the Loans and to issue Letters of Credit, the Borrower hereby represents
and warrants to the Agent and each Lender that:
5.1 Financial Condition. (a) The consolidated balance sheet of the Borrower
and the Restricted Subsidiaries at December 31, 1997 and the related
consolidated statements of income and of cash flows for the fiscal year ended on
such date, reported on by Xxxxxx Xxxxxxxx L.L.P., copies of which have
heretofore been furnished to each Lender, present fairly in all material
respects the consolidated financial condition of the Borrower and the Restricted
Subsidiaries, taken as a whole, as at such date, and the consolidated results of
their operations and their consolidated cash flows for the fiscal year then
ended. The unaudited consolidated balance sheet of the Borrower and the
Restricted Subsidiaries as at March 31, 1998 and the related unaudited
consolidated statements
52
of operations and of cash flows for the three-month period ended on such date
(the "Interim Statements"), copies of which have heretofore been furnished to
the Agent (with copies for each Lender), present fairly in all material respects
the consolidated financial condition of the Borrower and the Restricted
Subsidiaries as at such date, and the consolidated results of their operations
and their consolidated cash flows for the three-month period then ended (subject
to normal year-end audit adjustments and the absence of complete footnote
disclosure). All such financial statements, including the related schedules and
notes thereto, have been prepared in accordance with GAAP applied consistently
throughout the periods involved (except as approved by such accountants and as
disclosed therein and except for interim financial statements, which are subject
to normal year-end adjustments and lack footnotes). Except as set forth in
Schedule 5.1 and except for the Xxxx Acquisition, during the period from
December 31, 1997 to and including the Effective Date there has been no sale,
transfer or other disposition by the Borrower or any of the Restricted
Subsidiaries of any material part of its business, assets or property and no
purchase or other acquisition of any business, assets or property (including any
Equity Interests of any other Person) material in relation to the consolidated
financial condition of the Borrower and the Restricted Subsidiaries at December
31, 1997.
(b) The financial statements of the Borrower and the Restricted
Subsidiaries and other information most recently delivered under Sections 7.1(a)
and (b) were prepared in accordance with GAAP and present fairly in all material
respects the consolidated financial condition, results of operations, and cash
flows of the Borrower and the Restricted Subsidiaries, taken as a whole, as of,
and for the portion of the fiscal year ending on the date or dates thereof
(subject in the case of interim statements only to normal year-end audit
adjustments and the absence of footnotes).
(c) (i) The pro forma financial information, Budgets and projections
attached hereto as Schedule 5.1(c) furnished to the Agent by or on behalf of the
Borrower in connection with this Agreement, the Xxxx Acquisition and the
transactions contemplated hereby and thereby and (ii) all pro forma financial
information, Budgets and projections furnished to the Agent or any Lender in
connection with or pursuant to this Agreement or any other Loan Document after
the date of this Agreement and on or prior to the date on which this
representation and warranty is made or deemed made, were in each case prepared
and furnished to the Agent or such Lender in good faith and were based on
estimates and assumptions that were believed by the management of the Borrower
to be reasonable in light of the then current and foreseeable business
conditions of the Borrower and the Restricted Subsidiaries and represented the
Borrower's management's good faith estimate of the consolidated projected
financial performance of the Borrower and the Restricted Subsidiaries based on
the information available to the Responsible Officers at the time so furnished.
(d) All Information made available to the Agent or any Lender by or on
behalf of the Borrower in connection with or pursuant to this Agreement or any
other Loan Document on or prior to the date on which this representation and
warranty is made or deemed made did not, as of the date such Information was
made available, contain any untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements contained therein,
taken as a
53
whole, not materially misleading in light of the circumstances under which such
statements were made.
5.2 No Change. Since December 31, 1997, there has been no development or
event which has had or could reasonably be expected to have a Material Adverse
Effect.
5.3 Existence; Compliance with Law. The Borrower and each Subsidiary (a) is
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the corporate or partnership power and
authority, and the legal right, to own and operate its property, to lease the
property it operates as lessee and to conduct the business in which it is
currently engaged, (c) is duly qualified and, where applicable, in good standing
under the laws of each jurisdiction where its ownership, lease or operation of
property or the conduct of its business requires such qualification, except
where the failure to be so qualified could not reasonably be expected to have a
Material Adverse Effect, and (d) is in compliance with all Requirements of Law
except to the extent that the failure to comply therewith could not reasonably
be expected to have a Material Adverse Effect.
5.4 Power; Authorization; Enforceable Obligations. Each Loan Party has the
power and authority, and the legal right, to make, deliver and perform each of
the Loan Documents to which it is a party and to grant any security interests
provided for therein and, in the case of the Borrower, to borrow hereunder, and
has taken all necessary action to authorize the execution, delivery and
performance of each of the Loan Documents to which it is a party and, in the
case of the Borrower, to authorize the borrowings on the terms and conditions of
this Agreement. Except as set forth on Schedule 5.4, no consent or authorization
of, filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person (including any partner or shareholder of any Loan
Party or any Affiliate of any Loan Party) is required to be obtained or made by
any Loan Party or any other Person, in connection with the borrowings hereunder
or with the execution, delivery, performance, validity or enforceability of the
Loan Documents other than (a) the recording of the Mortgages required by Section
6.1(t) or Section 7.9 and the filings and notices required by the Pledge
Agreements and Security Agreements and (b) such as have been obtained or made
and are in full force and effect or which are immaterial. No consent or
authorization of, filing with, notice to or other act by or in respect of, any
Governmental Authority or any other Person (including any partner or shareholder
of any Loan Party or any Affiliate of any Loan Party) is required to be obtained
or made by any Loan Party or any Subsidiary of any Loan Party in connection with
the borrowings hereunder or with the execution, delivery, performance, validity
or enforceability of the Loan Documents other than such as have been obtained or
made and are in full force and effect or which are immaterial. Each Loan
Document to which each Loan Party is a party has been duly executed and
delivered on behalf of each such Loan Party. Each Loan Document constitutes a
legal, valid and binding obligation of each Loan Party thereto enforceable
against each such Loan Party in accordance with its terms, subject to the
effects of bankruptcy, insolvency, fraudulent transfer or conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors'
54
rights generally, general equitable principles (whether considered in a
proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.
5.5 No Legal Bar. The execution, delivery and performance of the Loan
Documents, the borrowings hereunder and the use of the proceeds thereof will not
(a) violate, result in a default under or conflict with any Requirement of Law
or any material Contractual Obligation, in any material respect, of the Borrower
or of any of the Restricted Subsidiaries or (b) violate any provision of the
charter or bylaws of the Borrower or the Restricted Subsidiaries and will not
result in a default under, or result in or require the creation or imposition of
any Lien on any of their respective properties or revenues pursuant to any such
Requirement of Law or material Contractual Obligation (other than pursuant to
the Security Documents).
5.6 No Material Litigation. No litigation, investigation or proceeding of
or before any arbitrator or Governmental Authority is pending or, to the
knowledge of the Borrower, threatened by or against the Borrower, any of the
Restricted Subsidiaries or against any of its or their respective properties or
revenues (a) with respect to any of the Loan Documents, the Xxxx Acquisition or
any of the transactions contemplated hereby or thereby or (b) as to which there
is a reasonable possibility of an adverse determination and, that if adversely
determined, could, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect.
5.7 No Default. Neither the Borrower nor any of the Restricted Subsidiaries
is in breach of or default under or with respect to any of its Contractual
Obligations in any respect which could reasonably be expected to have a Material
Adverse Effect. No Default or Event of Default has occurred and is continuing.
5.8 Ownership of Property; Intellectual Property. (a) Each of the Borrower
and the Restricted Subsidiaries has good record and indefeasible title in fee
simple to, or a valid leasehold interest in, all its material real property, and
good title to, or a valid leasehold interest in, all its other material
property, and none of such property is subject to any Lien except as permitted
by Section 8.3. Schedule 5.24 (as supplemented from time to time) accurately
describes the location of all real property owned or leased by the Borrower or
any Restricted Subsidiary and the location, by State and County of all material
tangible personal property associated with Stations owned by the Borrower or any
Restricted Subsidiary.
55
(b) The Borrower and the Restricted Subsidiaries have the right to use all
trademarks, tradenames, copyrights, technology, know-how or processes
("Intellectual Property") that are materially necessary for the conduct of the
business of the Borrower or any of the Restricted Subsidiaries, as applicable.
(c) As of the date of this Agreement, (i) neither the Borrower nor any
Restricted Subsidiary has received any notice of, nor has any knowledge of, any
pending or contemplated condemnation proceeding affecting the Mortgaged
Properties or any sale or disposition thereof in lieu of condemnation and (ii)
neither the Borrower nor any Restricted Subsidiary is obligated under any right
of first refusal, option or other contractual right to sell, assign or otherwise
dispose of any Mortgaged Property or any interest therein, other than the option
to purchase in favor of Great Lakes Radio, Inc. covering the property subject to
that certain Lease Agreement between Xxxx and Great Lakes Radio, Inc. as in
effect on the Effective Date.
5.9 No Burdensome Restrictions. No Requirement of Law or Contractual
Obligation of the Borrower or any of the Restricted Subsidiaries could
reasonably be expected to have a Material Adverse Effect.
5.10 Taxes. (a) All United States federal income Tax Returns of each Loan
Party required by law to be filed have been filed and all taxes shown by such
returns or otherwise assessed, which are due and payable, have been paid, except
assessments which are being contested in good faith by appropriate proceedings,
and with respect to which adequate reserves are maintained in accordance with
GAAP. Each Loan Party (i) has filed all other Tax Returns that are required to
have been filed by it pursuant to applicable foreign, state, local or other law,
except where the failure to so file could not reasonably be expected to have a
Material Adverse Effect and (ii) has paid all taxes and other assessments due
pursuant to such returns or pursuant to any assessment received by any Loan
Party, except for such taxes and other assessments, if any, as are being
contested in good faith, for which the criteria for Customary Permitted Liens
have been satisfied, including, without limitation, for which adequate reserves
are maintained in accordance with GAAP and which could not reasonably be
expected to have a Material Adverse Effect.
(b) All Taxes and other assessments and levies which the Loan Parties were
or are required to withhold or collect have been withheld and collected and have
been paid over or will be paid over when due to the proper governmental
authorities except to the extent the failure to withhold, collect or pay could
not reasonably be expected to have a Material Adverse Effect. Neither the
Internal Revenue Service nor any other taxing authority is now asserting or, to
the knowledge of Borrower, threatening to assert against any Loan Party any
deficiency or claim for additional Taxes or interest thereon or penalties in
connection therewith which could reasonably be expected to have a Material
Adverse Effect. No Loan Party is a party to any Tax allocation or sharing
arrangement with any Person other than another Loan Party, except as required in
connection with the sale of property under that certain Lease Agreement between
Great Lakes Radio, Inc. and Xxxx as in effect on the Effective Date or in
connection with the proration of Taxes in connection with
56
Dispositions and Acquisitions. There are no Liens on any of the assets of any
Loan Party that arose in connection with any failure (or alleged failure) to pay
any Taxes except as permitted under Section 8.3.
5.11 Federal Regulations. Neither the Borrower nor any Subsidiary is
engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying Margin Stock. No part
of the proceeds of any Loan has been or will be used by the Borrower or any
Subsidiary, whether directly or indirectly, and whether immediately,
incidentally or ultimately, (i) to purchase or carry Margin Stock or to extend
credit to others for the purpose of purchasing or carrying Margin Stock or to
refund indebtedness originally incurred for such purpose, or (ii) for any
purpose that entails a violation of, or that is inconsistent with, the
provisions of the regulations of the Board including Regulations G, U and X. If
requested by any Lender or the Agent, the Borrower will furnish to the Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1 referred to in said Regulation G or
Regulation U, as the case may be.
5.12 ERISA. Except as, in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect: (a) neither a Reportable Event nor an
"accumulated funding deficiency" (within the meaning of Section 412 of the Code
or Section 302 of ERISA) has occurred during the five-year period prior to the
date on which this representation is made or deemed made with respect to any
Plan, and each Plan has complied in all material respects with the applicable
provisions of ERISA and the Code; (b) no termination of a Single Employer Plan
has occurred, and no Lien in favor of the PBGC or a Plan has arisen, during such
five-year period; (c) the present value of all accrued benefits under each
Single Employer Plan (based on those assumptions used to fund such Plans) did
not, as of the last annual valuation date prior to the date on which this
representation is made or deemed made, exceed the value of the assets of such
Plan allocable to such accrued benefits; (d) neither the Borrower nor any
Commonly Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan, and neither the Borrower nor any Commonly Controlled Entity
would become subject to any liability under ERISA if the Borrower or any such
Commonly Controlled Entity were to withdraw completely from all Multiemployer
Plans as of the valuation date most closely preceding the date on which this
representation is made or deemed made; and (e) no such Multiemployer Plan is in
Reorganization or Insolvent.
5.13 Investment Company Act; Other Regulations. No Loan Party is (a) an
"investment company" or a company "controlled by" an "investment company," as
such terms are defined in the Investment Company Act of 1940, as amended, and
the rules and regulations thereunder or (b) a "holding company" or a
"subsidiary" or "affiliate" of a "holding company" or a "public utility," as
such terms are defined in the Public Utility Holding Company Act of 1935, as
amended, and the rules and regulations thereunder. None of the transactions
contemplated by this Agreement will violate or result in a violation of Section
7 of the Exchange Act or any regulations thereunder, including, without
limitation, Regulations G, T, U and X of the Federal Reserve Board. The making
of the Loans and the issue and acquisition of the Notes do not constitute
"purpose
57
credit" within the meaning of Regulation G or U of the Federal Reserve Board,
and the Lenders are not required to obtain a statement from Borrower on any
Federal Reserve Board form with respect to the extension of credit hereunder.
Loan Parties do not intend to apply, nor will it apply, any part of the proceeds
of the Loans in any manner that is unlawful or would involve a violation of the
Foreign Assets Control Regulations or the Cuban Assets Control Regulations of
the United States Treasury Department.
5.14 Restricted Subsidiaries. (a) Schedule 5.14(a) (as supplemented from
time to time) sets forth a true and complete list of (i) all of the Restricted
Subsidiaries and (ii) all of the issued and outstanding Equity Interests (and
related percentages of ownership of the Common Equity) and the owners thereof,
of the Borrower and each Restricted Subsidiary. The outstanding shares of Equity
Interests of each Restricted Subsidiary and the Borrower have been duly
authorized and validly issued and are fully paid and non-assessable, and all of
the outstanding shares of each class of the Equity Interests of each Restricted
Subsidiary are owned, directly or indirectly, beneficially and of record, by the
Borrower, free and clear of all Liens other than the Liens created by the
Security Documents.
(b) Except for changes otherwise permitted by this Agreement, the duly
authorized Equity Interests of the Borrower consists of (i) 2,000 authorized
shares of common stock, par value $.01 per share, which consists of (a) 1,000
shares of Common Stock of which 138.45 shares are outstanding as of the
Effective Date, and fully-paid and non-assessable, and (b) 1,000 shares of
Non-Voting Common Stock of which no shares are outstanding as of the Effective
Date, and (ii) 290,000 authorized shares of Preferred Stock, $.01 par value per
share, which consists of (a) 140,000 shares of 15% Series A Senior Cumulative
Redeemable Preferred Stock of which 84,843.03 shares are outstanding as of the
Effective Date and all of which are fully-paid and non-assessable, and (b)
150,000 shares of 15% Series B Senior Cumulative Redeemable Preferred Stock of
which 124,467.10 shares are outstanding as of the Effective Date and all of
which are fully-paid and non-assessable. All the outstanding shares of Equity
Interests of each Loan Party are duly authorized, validly issued, fully paid and
nonassessable, and none of such shares has been issued in violation of any
preemptive or preferential Rights of any Persons. Until the closing of the
initial Public Equity Offering of the Borrower, no voting trusts, agreements or
other voting arrangements or any other agreements exist with respect to the
Common Equity of the Borrower other than those agreements relating to the sale
of Common Equity of the Borrower which may be entered into in contemplation of
and in connection with the initial Public Equity Offering of the Borrower
(provided that any such agreements are terminated in the event the Borrower does
not close its initial Public Equity Offering) and other than those listed on
Schedule 5.14(b). No voting trusts, agreements or other voting arrangements or
any other agreements exist with respect to the Equity Interests of any
Restricted Subsidiary. Until the closing of the initial Public Equity Offering
of the Borrower, no outstanding subscription, contract, convertible or
exchangeable security, option, warrant, call or other Rights (whether absolute
or contingent, statutory or otherwise) (collectively, "Equity Agreements")
obligating or permitting the Borrower to issue, sell, exchange or otherwise
dispose of or to purchase, redeem or otherwise acquire shares of, or securities
convertible into or exchangeable for, Equity
58
Interests of the Borrower (excluding the Senior Preferred Stock) exists other
than Equity Agreements relating to the sale of Common Equity of the Borrower
entered into in contemplation of and in connection with the initial Public
Equity Offering of the Borrower (provided that all such Equity Agreements are
terminated in the event the Borrower does not close its initial Public Equity
Offering), the Warrants, the Allied Warrant and any options to purchase Common
Equity of the Borrower granted to employees of the Borrower or any Restricted
Subsidiary, provided such options are concurrently pledged to the Lenders as
security for the Obligations. No Equity Agreements obligating or permitting any
Restricted Subsidiary to issue, sell, exchange or otherwise dispose of or to
purchase, redeem or otherwise acquire shares of, or securities convertible into
or exchangeable for, Equity Interests of any Restricted Subsidiary exists. No
Equity Interest of any Loan Party is subject to any restriction on transfer
thereof except as set forth on Schedule 5.14(b) and except for restrictions set
forth in the Loan Documents and those imposed by federal or state securities
Laws or which may arise as a result of any Loan Party being subject to the
Communications Act. Pursuant to the Pledge Agreements, until (i) the closing of
the initial Public Equity Offering of the Borrower, (ii) the repurchase or
redemption of the outstanding Senior Preferred Stock and (iii) the exercise of
all of the outstanding Warrants for common stock of the Borrower pursuant to the
terms and provisions of the Warrant Certificates as in effect on the date
hereof, the Lenders will at all times hold a valid and perfected first priority
Lien on all of the issued and outstanding Equity Interests of each Loan Party
(other than the Senior Preferred Stock), on a fully diluted basis and on all
warrants (other than the Allied Warrant) and options to purchase such Equity
Interests. Each Restricted Subsidiary of the Borrower is, directly or
indirectly, a Wholly Owned Subsidiary.
5.15 Insurance. Each Loan Party maintains with financially sound,
responsible, and reputable insurance companies or associations (or, as to
workers' compensation or similar insurance, with an insurance fund or by
self-insurance authorized by the jurisdictions in which it operates) insurance
covering its properties and businesses against such casualties and contingencies
and of such types and in such amounts (and with co-insurance and deductibles) as
is customary in the case of same or similar businesses.
5.16 Authorization Matters. Except as could not reasonably be expected to
result in a Material Adverse Effect:
(a) the Borrower and the Restricted Subsidiaries possess all
Authorizations necessary to own, operate and construct the Broadcast Assets
or otherwise for the operations of their businesses and are not in
violation thereof and all such Authorizations are in full force and effect
and no event has occurred that permits, or after notice or lapse of time
could permit, the revocation, termination or material and adverse
modification of any such Authorization, other than the renewal of FCC
Licenses in accordance with the procedures of the FCC from time to time;
59
(b) neither the Borrower nor any of the Restricted Subsidiaries is in
violation of any duty or obligation required by the Communications Act of
1934, as amended, or any FCC rule or regulation applicable to its or their
operations;
(c) there is not pending or, to the best knowledge of the Borrower,
threatened, any action by the FCC to revoke, cancel, suspend or refuse to
renew any FCC License held by the Borrower or any of the Restricted
Subsidiaries and there is not pending or, to the best knowledge of the
Borrower, threatened, any action by the FCC to modify adversely, revoke,
cancel, suspend or refuse to renew any other Authorization; and
(d) there is not issued or outstanding or, to the best knowledge of
the Borrower, threatened, any notice of any hearing, violation or complaint
against the Borrower or any of the Restricted Subsidiaries with respect to
the Authorizations of the Borrower or of any of the Restricted Subsidiaries
and the Borrower has no knowledge that any Person intends to contest
renewal of any Authorization.
5.17 Environmental Matters. Except as could not reasonably be expected to
result in a Material Adverse Effect:
(a) the facilities and properties owned by the Borrower or any of its
Subsidiaries (the "Owned Properties") do not contain, and, to the knowledge
of the Borrower to the extent not owned, leased or operated during the past
five years, have not contained during the past five years, any Materials of
Environmental Concern in amounts or concentrations which constitute or
constituted a violation of, or could reasonably be expected to give rise to
liability under, any Environmental Law;
(b) the facilities and properties leased or operated by the Borrower
or any of its Subsidiaries, but not owned by them (the "Leased and Operated
Properties"), to the knowledge of the Borrower, do not contain and have not
contained during the past five years, any Materials of Environmental
Concern in amounts or concentrations which constitute or constituted a
violation of, or could reasonably be expected to give rise to liability
under, any Environmental Law;
(c) the Owned Properties and all operations at the Owned Properties
are in compliance, and, to the knowledge of the Borrower to the extent not
owned, leased or operated during the past five years, have in the last five
years been in compliance, with all applicable Environmental Laws, and there
is no contamination at, under or about the Owned Properties or violation of
any Environmental Law with respect to the Owned Properties or the business
operated by the Borrower or any of its Subsidiaries (the "Business") which
could interfere with the continued operation of the Owned Properties or
impair the fair saleable value thereof;
60
(d) to the knowledge of the Borrower, the Leased and Operated
Properties and all operations at the Leased and Operated Properties are in
compliance, and, in the last five years been in compliance, with all
applicable Environmental Laws, and to the knowledge of the Borrower there
is no contamination at, under or about the Leased and Operated Properties
or violation of any Environmental Law with respect to the Leased and
Operated Properties or the Business operated by the Borrower or any of its
Subsidiaries which could interfere with the continued operation of the
Leased and Operated Properties or impair the fair saleable value thereof;
(e) neither the Borrower nor any of its Subsidiaries has received any
notice of violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Owned Properties or the Leased
and Operated Properties (together, the "Properties") or the Business, nor
does the Borrower have any knowledge that any such notice will be received
or is being threatened;
(f) the Borrower has not transported or disposed of Materials of
Environmental Concern nor, to the Borrower's knowledge, have Materials of
Environmental Concern been transported or disposed of from the Properties
in violation of, or in a manner or to a location which could reasonably be
expected to give rise to liability to the Borrower or any Subsidiary under,
any Environmental Law, nor has the Borrower generated any Materials of
Environmental Concern nor, to the Borrower's knowledge, have Materials of
Environmental Concerns been generated, treated, stored or disposed of at,
on or under any of the Properties in violation of, or in a manner that
could reasonably be expected to give rise to liability to the Borrower or
any Subsidiary under, any applicable Environmental Law;
(g) no judicial proceeding or governmental or administrative action is
pending or, to the knowledge of the Borrower, threatened, under any
Environmental Law to which the Borrower or any Subsidiary is or will be
named as a party with respect to the Properties or the Business, nor are
there any consent decrees or other decrees, consent orders, administrative
orders or other orders, or other administrative or judicial requirements
outstanding under any applicable Environmental Law with respect to the
Properties or the Business; and
(h) the Borrower has not released, nor, to the Borrower's knowledge,
has there been any release or threat of release of Materials of
Environmental Concern at or from the Properties, or arising from or related
to the operations of the Borrower or any Subsidiary in connection with the
Properties or otherwise in connection with the Business, in violation of or
in amounts or in a manner that could reasonably be expected to give rise to
liability under Environmental Laws.
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5.18 Accuracy of Information. (a) All material Information made available
to the Agent or any Lender by the Borrower pursuant to this Agreement or any
other Loan Document did not, as of the date such Information was made available,
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements contained therein not materially
misleading in light of the circumstances under which such statements were made.
(b) All pro forma financial information and projections made available to
the Agent or any Lender by the Borrower pursuant to this Agreement or any other
Loan Document have been prepared and furnished to the Agent or such Lender in
good faith and were based on estimates and assumptions that were believed by the
management of the Borrower to be reasonable in light of the then current and
foreseeable business conditions of the Borrower and the Subsidiaries. The Agent
and the Lenders recognize that such pro forma financial information and
projections and the estimates and assumptions on which they are based may or may
not prove to be correct.
5.19 Security Documents. (a) Each Pledge Agreement is effective to create
in favor of the Agent, for the ratable benefit of the Lenders and other secured
parties named therein, a legal, valid and enforceable security interest in that
portion of the Collateral described therein and proceeds thereof and, when such
Collateral is delivered to the Agent, such Pledge Agreement shall constitute a
fully perfected first priority Lien on, and security interest in, all right,
title and interest of the pledgors thereunder in such Collateral and the
proceeds thereof, in each case prior and superior in right to any other Person.
(b) Each Security Agreement is effective to create in favor of the Agent,
for the ratable benefit of the Lenders and other secured parties named therein,
a legal, valid and enforceable security interest in that portion of the
Collateral described therein and proceeds thereof and, when financing statements
in appropriate form as filed in the offices specified in the Perfection
Certificates, such Security Agreement shall constitute a fully perfected Lien
on, and security interest in, all right, title and interest of the grantors
thereunder in such Collateral and the proceeds thereof, in each case prior and
superior in right to any other Person, to the extent provided in such Security
Agreement, other than with respect to the rights of Persons pursuant to Liens
expressly permitted by Section 8.3.
(c) The Mortgages are effective to create in favor of the Agent, for the
ratable benefit of the Lenders and other secured parties named therein, a legal,
valid and enforceable Lien on all of the right, title and interest of the
grantor named therein in and to the Mortgaged Properties thereunder and the
proceeds thereof, and when the Mortgages are filed in the offices specified in
the Perfection Certificates, the Mortgages shall constitute fully perfected
Liens on, and security interests in, all right, title and interest of the such
grantor in such Mortgaged Property and the proceeds thereof, in each case prior
and superior in right to any other Person, other than with respect to the rights
of Persons pursuant to Liens expressly permitted by Section 8.3.
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5.20 Solvency. As of the date on which this representation and warranty is
made or deemed made, each Loan Party is Solvent, both before and after giving
effect to the transactions contemplated hereby consummated on such date and to
the incurrence of all Indebtedness and other obligations incurred on such date
in connection herewith and therewith.
5.21 Labor Matters. There are no actual or overtly threatened strikes,
labor disputes, slow downs, walkouts, or other concerted interruptions of
operations by the employees of any Loan Party which could reasonably be expected
to have a Material Adverse Effect. Hours worked by and payment made to employees
of the Loan Parties have not been in violation of the Fair Labor Standards Act
or any other applicable law dealing with such matters, other than any such
violations, individually or collectively, which could not reasonably be expected
to have a Material Adverse Effect. All payments due from any Loan Party on
account of employee health and welfare insurance have been paid or accrued as a
liability on its books, other than any such nonpayments which could not,
individually or collectively, reasonably be expected to have a Material Adverse
Effect.
5.22 Prior Names. (a) As of the Effective Date, neither the Borrower nor
any Restricted Subsidiary has used or transacted business under any other
corporate or trade name in the five-year period preceding the Effective Date
except as set forth on Schedule 5.22(a) hereto.
(b) Neither the Borrower nor any Restricted Subsidiary uses or transacts
business under any corporate or trade names other than those set forth in
Schedule 5.22(b) (as supplemented from time to time).
5.23 Chief Executive Office; Chief Place of Business. Schedule 5.23 (as
supplemented from time to time) accurately sets forth the location of the chief
executive office and chief place of business (as such terms are used in the
Uniform Commercial Code of each state whose law would purport to govern the
attachment and perfection of the security interests granted by the Security
Documents) of the Borrower and each Restricted Subsidiary.
5.24 Real Property; Leases. Schedule 5.24(a) (as supplemented from time to
time) sets forth a correct and complete listing of (a) all real property owned
by each Loan Party, (b) all leases and subleases of real property leased by each
Loan Party, and (c) all leases and subleases of real property by each Loan Party
with annual lease payments to be received therefore in excess of $50,000. Each
Loan Party has good and marketable title to, or a valid and subsisting leasehold
interest in, all its material real property, subject to no Liens except those
permitted in Section 8.3. Each Loan Party enjoys peaceful and undisturbed
possession of its owned and leased real property and the improvements thereon
and no Material Lease or other lease material to the operation of any Loan
Party's business contains any unusual provisions that might adversely affect or
impair such Loan Party's use and enjoyment of the property covered thereby or
the operation of such Loan Party's business or, in either case, which could
reasonably be expected to have a Material Adverse Effect. All Material Leases
are in full force and effect and no default or potential default exists
thereunder
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which could reasonably be expected to have a Material Adverse Effect, except as
disclosed in Schedule 5.24.
5.25 Ownership of Stations. Schedule 5.25 (as supplemented from time to
time) completely and correctly lists each radio broadcast station owned directly
or indirectly by any Loan Party (individually, a "Station" and collectively, the
"Stations"). No Loan Party owns any radio broadcast stations other than the
Stations.
5.26 Possession of Necessary Authorizations Each Loan Party possesses all
Necessary Authorizations (or rights thereto) used or to be used in its business
as presently conducted and as proposed to be conducted or necessary to permit it
to own its properties and to conduct its business as presently conducted and as
proposed to be conducted, except to the extent the failure to so possess could
not reasonably be expected to have a Material Adverse Effect, free and clear of
all Liens other than those permitted under Section 8.3. No Loan Party is in
violation of any Necessary Authorization and no event has occurred which
permits, or after notice or lapse of time or both would permit, the revocation
or termination of any Necessary Authorization or right which could reasonably be
expected to have a Material Adverse Effect. The Necessary Authorizations for the
Stations are valid and in full force and effect unimpaired by any act, omission
or condition which could reasonably be expected to have a Material Adverse
Effect. The applicable Loan Parties have timely filed all applications for
renewal or extension of all Necessary Authorizations, except to the extent that
the failure to so file could not reasonably be expected to have a Material
Adverse Effect. Except for actions or proceedings (i) affecting the broadcasting
industry generally or (ii) which could not reasonably be expected to have a
Material Adverse Effect, no petition, action, investigation, notice of violation
or apparent liability, notice of forfeiture, orders to show cause, complaint or
proceeding is pending or, to the best knowledge of the Borrower, threatened
before the FCC or any other forum or agency with respect to any Loan Party or
any of the Stations or seeking to revoke, cancel, suspend or modify any of the
Necessary Authorizations. The Borrower does not know of any fact that is likely
to result in the denial of an application for renewal, or the revocation,
modification, nonrenewal or suspension of any of the Necessary Authorizations,
or the issuance of a cease-and-desist order, or the imposition of any
administrative or judicial sanction with respect to any of the Stations, which
could reasonably be expected to have a Material Adverse Effect.
5.27 FCC, Copyright, Patent and Trademark Matters. No Loan Party is liable
to any Person for copyright infringement under the Federal Copyright Act or any
state copyright Laws which could reasonably be expected to have a Material
Adverse Effect. To the best knowledge of the Loan Parties, each Loan Party and
each Station is in material compliance with all state and federal laws relating
to copyright, including the Copyright Revision Act of 1976, 17 U.S.C. ss. 101
et. seq., and have all performing arts licenses which are materially necessary
for the conduct of their business. To the best knowledge of each Loan Party, no
Loan Party owns any patents or trademarks that have been registered with any
Tribunal and no applications for registration are pending with respect to any
patents or trademarks owned by any Loan Party, except as set forth in Schedule
5.27 (as supplemented from time to time).
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5.28 License Subsidiaries. All FCC Licenses and other Authorizations
relating to the Stations are held by a License Subsidiary. No License Subsidiary
(a) owns or holds any assets (including the ownership of stock or any other
interest in any Person) other than Operating Agreements and FCC Licenses and
other Authorizations relating to the Stations, (b) is engaged in any business
other than the holding, acquisition and maintenance of FCC Licenses and other
Authorizations, (c) has any investments in any other Person other than the
Borrower or (d) owes any Indebtedness (other than Guaranty Obligations to the
Senior Subordinated Note Holders and the Lenders with respect to the Senior
Subordinated Indebtedness and the Obligations, respectively) to any Person other
than the Borrower.
SECTION 6. CONDITIONS PRECEDENT
6.1 Conditions to Effectiveness of this Agreement. The effectiveness of
this Agreement is subject to the satisfaction of the following conditions
precedent:
(a) Loan Documents. The Agent shall have received (i) this Agreement
duly executed and delivered by the Borrower; (ii) Notes, duly executed and
delivered by the Borrower and payable to the order of each Lender, (iii) a
Pledge Agreement duly executed and delivered by the Borrower and each
Restricted Subsidiary, including Xxxx, (iv) a Security Agreement duly
executed and delivered by the Borrower and each Restricted Subsidiary,
including Xxxx, (v) an Intellectual Property Security Agreement duly
executed by the Borrower and each Restricted Subsidiary, including Xxxx and
(vi) a Guaranty duly executed and delivered by each Restricted Subsidiary,
including Xxxx.
(b) Closing Certificates. The Agent shall have received a certificate
(the "Closing Certificate") for each Loan Party, dated the Effective Date,
substantially in the form of Exhibit K, with appropriate insertions and
attachments (including the Charter Documents of such Loan Party), in each
case reasonably satisfactory in form and substance to the Agent, executed
by a Responsible Officer and the Secretary or any Assistant Secretary of
each Loan Party, which certificate shall state that the consent or approval
thereby certified has not been amended, modified, revoked or rescinded.
(c) Fees. The Agent shall have received:
(i) all fees and expenses required to be paid at such time under
Sections 3.3 and 4.3; and
(ii) all reasonable fees and expenses of counsel to the Agent in
connection with this Agreement and the other Loan Documents.
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(d) Legal Opinions. The Agent shall have received, with a counterpart
for each Lender, the following executed legal opinions:
(i) the executed legal opinion of Xxxxxxxx & Xxxxx, substantially
in the form of Exhibit L;
(ii) the executed legal opinion of Xxxxx Xxxxxx Xxxxxxxx LLP, FCC
counsel to the Borrower, substantially in the form of Exhibit M;
(iii) from such local counsel to the Loan Parties as the Agent
may require in respect of the Mortgages and other Security Documents,
each in form and substance satisfactory to the Agent; and
(iv) a reliance letter in respect of all legal opinions
(including those delivered by counsel to the Borrower) in connection
with the Xxxx Acquisition.
(e) Financial Statements. The Lenders shall have received (i) audited
consolidated financial statements of the Borrower and its consolidated
Subsidiaries and audited financial statements of Xxxx for the 1997 fiscal
year, which financial statements shall have been prepared in accordance
with GAAP and shall be accompanied by an unqualified report thereon
prepared by Xxxxxx Xxxxxxxx L.L.P., with respect to the Borrower, and by
Deloitte and Touche, with respect to Xxxx, and (ii) the unaudited
consolidated financial statements of the Borrower and its consolidated
Subsidiaries for the fiscal quarter ending March 31, 1998 prepared, by
Xxxxxx Xxxxxxxx L.L.P., on a proforma basis giving effect to the Xxxx
Acquisition and the extensions of credit to be made hereunder on the
Effective Date.
(f) Governmental and Third Party Approvals. All material
Authorizations and third-party approvals (including, without limitation,
all FCC Licenses and consents) necessary or appropriate in connection with
the Xxxx Acquisition, the financing thereof and the other transactions
contemplated by the Loan Documents shall have been obtained and shall be in
full force and effect, and all applicable waiting periods (except with
respect to the transfer by Xxxx of its FCC Licenses to a License
Subsidiary) shall have expired without any action being taken or threatened
by any competent authority which would restrain, prevent or otherwise
impose materially adverse conditions on the Xxxx Acquisition, the financing
thereof or the other transactions contemplated by the Loan Documents and
copies of all such Authorizations and third-party approvals shall be
delivered to the Agent.
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(g) No Material Adverse Information. The Lenders shall not have become
aware of any previously undisclosed materially adverse information with
respect to (i) the ability of the Loan Parties to perform their respective
obligations under the Loan Documents or in connection with the transactions
contemplated hereunder in any material respect or (ii) the rights and
remedies of the Lenders.
(h) No Material Default Under Other Agreements. There shall exist no
material breach or event of default (or condition which would constitute
such breach or an event of default with the giving of notice or the passage
of time) under any agreements relating to Equity Interests, or any material
financing agreements, lease agreements or other material Contractual
Obligation, to which the Borrower, any of the Restricted Subsidiaries or
Xxxx is a party or by which any of them is bound.
(i) Pledged Securities and Instruments of Transfer. The Agent shall
have received the certificates representing the shares of Equity Interests
(other than the Senior Preferred Stock) pledged pursuant to each Pledge
Agreement, accompanied by duly executed instruments of transfer or
assignments in blank for each such certificate.
(j) Actions to Perfect Liens. (i) All filing documents, necessary or,
in the opinion of the Agent, desirable to perfect or continue to protect
the Liens created by the Security Documents shall have been executed and
delivered by the pledgors or grantors thereunder; and (ii) all Collateral
shall be free and clear of Liens except for Liens permitted by Section 8.3
and other Liens approved by the Lenders.
(k) Material Adverse Change. There shall exist no material adverse
change in the financial condition or business operations of the Borrower,
the Restricted Subsidiaries or Xxxx since December 31, 1997.
(l) Projections and Certified Pro Forma Financial Information. The
Agent shall have received (i) a pro forma consolidated balance sheet for
the Borrower and the Restricted Subsidiaries (giving effect to the Xxxx
Acquisition, the extensions of credit to be made hereunder and the use of
proceeds hereunder) dated as of March 31, 1998, certified to by a
Responsible Officer, (ii) the unaudited financial statements of the
Borrower and the Restricted Subsidiaries for the months of April and May,
1998, certified to by a Responsible Officer and (iii) management's five
year projections for the Borrower and the Restricted Subsidiaries, after
giving effect to the Xxxx Acquisition.
(m) Lien Searches. The Agent shall have received the results of a
recent search by a Person reasonably satisfactory to the Agent, of the
Uniform Commercial Code, judgment and tax lien filings which may have been
filed with respect to personal property of the Borrower and the Restricted
Subsidiaries and Xxxx in each of the jurisdictions where such personal
property is located or in which financing statements will be filed to
perfect the
security interests granted pursuant to the Security Documents, and such
search shall reveal no Liens relating to the personal property of the
Borrower, the Restricted Subsidiaries, Xxxx or to the Collateral, except
for Liens which will be terminated on or before the Effective Date, Liens
referred to in Section 6.1(j), Liens permitted by Section 8.3, and other
Liens approved by the Lenders.
(n) Insurance. The Agent shall have received certificates of insurance
naming (i) the Agent as loss payee for the benefit of the Lenders and (ii)
each of the Lenders as an additional insured, as required by Section
7.5(b).
(o) Amendment to Standstill Agreement. The Agent shall have received
(i) an original fully executed copy of the Standstill Agreement, in the
form attached hereto as Exhibit N, (ii) the Borrower shall have received
from each of the Investors the original of each certificate representing
such Investor's Senior Preferred Stock and shall have caused each such
certificate of the Senior Preferred Stock to be re-issued to contain the
legend required in the Standstill Agreement and (iii) the Borrower shall
have caused each Warrant Certificate to be re-issued to contain the legend
required in the Standstill Agreement.
(p) License Subsidiaries and Operating Agreements. The Borrower shall
have caused all Necessary Authorizations relating to the Stations
(including Stations WCHB-AM, Taylor, Michigan, WCHB-FM, Detroit, Michigan
and WJZZ-AM, Xxxxxxxx, Michigan) to have been transferred to a License
Subsidiary, which License Subsidiary shall (i) be a Wholly Owned Restricted
Subsidiary, (ii) shall have no Indebtedness (other than Guaranty
Obligations to the Senior Subordinated Note Holders and the Lenders with
respect to the Senior Subordinated Indebtedness and the Obligations,
respectively), (iii) shall have no assets, other than the Necessary
Authorizations and (iv) shall otherwise be in compliance with the
representations and warranties set forth in Section 5.28. The Borrower and
each License Subsidiary shall have entered into an Operating Agreement and
the Agent shall have received a fully executed copy of each such Operating
Agreement.
(q) FCC Consents. The Borrower shall have received all of the
Necessary Authorizations (i) for the consummation of the transactions
contemplated herein including the Xxxx Acquisition and in any related
agreements or documents, (ii) the period for seeking reconsideration,
review or appeal of such Necessary Authorizations shall have expired,
except with respect to the transfer by Xxxx of its FCC Licenses to a
License Subsidiary and (iii) no such reconsideration, review or appeal
shall have been sought by any party.
(r) Perfection Certificate. The Agent shall have received a Perfection
Certificate, dated the date of this Agreement, duly executed by each Loan
Party.
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(s) Amendment to Preferred Stockholders' Agreement. The Agent shall
have received an amendment to the Preferred Stockholders' Agreement in the
form attached hereto as Exhibit O.
(t) Mortgages. The Mortgages covering the Mortgaged Properties
specified on Schedule 5.24(b), duly executed and delivered by the Borrower
and each applicable Restricted Subsidiary, including Xxxx.
(u) Mortgagee Policies of Title Insurance/Surveys. To the extent
reasonably required by the Agent (A) mortgagee policies of title insurance
in such amounts as are approved by the Agent, insuring that the Mortgages
create in favor of the Agent for the benefit of the Lenders a first
priority Lien on the real property and interests in real property covered
by the Mortgages and reflecting a state of title and exceptions thereto, if
any, reasonably acceptable to the Agent and containing such endorsements as
the Agent may require and (B) copies of recent surveys with respect to each
tract of real property covered by each Mortgage, dated and certified in a
manner reasonably satisfactory to the Agent and the title insurance company
issuing the mortgagee policies of title insurance and prepared in
accordance with the Minimum Standard Detail Requirements for Land Title
Surveys jointly established and adopted by the American Land Title
Association and American Congress on Surveying and Mapping in 1992 by an
independent professional licensed land surveyor satisfactory to such title
insurance company.
(v) Copies of Exception Documents. To the extent required by the
Agent, copies of all recorded documents referred to, or listed as
exceptions to title in, the title policy or policies and a copy, certified
by such parties as the Agent may reasonably deem appropriate, of all other
documents affecting the property covered by each Mortgage.
(w) Landlord Waivers and Consents. To the extent required by the
Agent, Landlord Waivers and Consents signed by each lessor of real property
leased by the Borrower or any Restricted Subsidiary (including Xxxx),
waiving such lessor's liens in and to the equipment or fixtures of the
applicable Loan Party located on the leased premises and consenting to an
assignment of the applicable lease to the Lenders or purchasers of the
Lenders after an Event of Default.
(x) Cancellation of Liens. Evidence that all Liens other than Liens
permitted by Section 8.3 have been canceled and released, including duly
executed releases and UCC-3 financing statements in recordable form and
otherwise in form and substance satisfactory to the Agent.
(y) Consummation of Xxxx Acquisition. The Lenders shall have received
satisfactory evidence that the Xxxx Acquisition shall have been consummated
prior to or concurrently with the making of the initial Loans pursuant to
and in accordance with the
terms and conditions of the Xxxx Acquisition Agreement and related
acquisition documentation reasonably satisfactory in form and substance to
the Lenders (no material provision thereof having been amended,
supplemented, waived or otherwise modified, without the prior written
consent of the Lenders).
(z) Appointment of Service Agent. Evidence that Corporation Service
Company has accepted its appointment as agent for the Borrower and the
Restricted Subsidiaries (including Xxxx) to receive service of process in
any legal action or proceeding relating to the Loan Documents brought in
the State of New York during the period from the Effective Date through two
years following the Termination Date.
(aa) Repayment and Cancellation of Certain Indebtedness. (i) All
Indebtedness and all other obligations outstanding with respect to the
Existing Credit Agreement, the Xxxxxxx Credit Agreement, the Xxxx
Indebtedness and all other Indebtedness not permitted by Section 8.2 shall
have been paid or otherwise discharged in full, and all Liens created in
connection therewith shall have been terminated and (ii) the Lenders shall
have received satisfactory evidence (including receipt by the Agent of
copies of canceled instruments and securities) that such Indebtedness has
been paid and loan documentation, security interests, guaranties and Liens
with respect thereto have been terminated and released concurrently with
the making of the initial Loans.
6.2 Conditions to All Extensions of Credit. The obligation or agreement of
each Lender to make any Loan or to issue any Letter of Credit requested to be
made or issued by it on any date (including, without limitation, its initial
extension of credit under this Agreement) is subject to the satisfaction,
immediately prior to or concurrently with the making of such Loans or the
issuing of such Letters of Credit, of the following conditions precedent:
(a) No Material Litigation. No litigation, inquiry, injunction or
restraining order shall be pending, entered or threatened in writing which
could reasonably be expected to have a Material Adverse Effect.
(b) No Material Adverse Effect. There shall not have occurred any
change, development or event which could reasonably be expected to have a
Material Adverse Effect.
(c) Representations and Warranties. Each of the representations and
warranties made by any Loan Party in or pursuant to the Loan Documents to
which it is a party shall be true and correct in all material respects on
and as of such date as if made on and as of such date, after giving effect
to the Loans requested to be made or the Letters of Credit to be issued on
such date and the proposed use of the proceeds thereof.
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(d) No Default. No Default or Event of Default shall have occurred and
be continuing on such date or will occur immediately after giving effect to
the extension of credit requested to be made on such date and the proposed
use of the proceeds thereof.
(e) Notice of Borrowing; Application. The Borrower shall have
submitted a Notice of Borrowing in accordance with Section 2.3 and/or an
Application in accordance with Section 3.2 and certifying to the matters
set forth in Section 6.2(a) through and including (d).
(f) Consent to Extensions of Credit. The Agent shall have received (i)
a consent in writing signed by Investors holding a majority of the
outstanding shares of Senior Preferred Stock and the Borrower with respect
to any extensions of credit requested hereunder which, when aggregated with
all other extensions of credit hereunder outstanding at such time, causes
the Aggregate Outstandings of Credit of all Lenders to exceed $30,000,000 a
consent from at least two directors of the Borrower representing the
interests of the Investors as elected pursuant to Article 8 of the Warrant
Agreement (the "Independent Directors") for each extension of credit
requested hereunder, in each case until the earlier to occur of (x) the
date of the closing of the initial Public Equity Offering of the Borrower
and the repurchase and/or redemption of all of the Senior Preferred Stock
outstanding on the Effective Date and (y) the date the Agent has received a
written notice from at least two Independent Directors that no such further
consent is required.
(g) Compliance Certificate. The Agent shall have received a pro forma
Compliance Certificate duly executed by a Responsible Officer of the
Borrower and each of the Restricted Subsidiaries giving effect to the
requested extension of credit, the use of proceeds thereof and any
transaction to be consummated in connection therewith certifying to the
Lenders that (i) no Default or Event of Default exists both before and
immediately after giving effect to such extension of credit, the uses
thereof and transactions to be consummated in connection therewith and (ii)
the Borrower can incur such Indebtedness under the Senior Subordinated Debt
Documents and any other documents evidencing Subordinated Debt permitted to
be incurred by the Borrower under this Agreement.
Each borrowing by or issuance of a Letter of Credit on behalf of the Borrower
hereunder shall constitute a representation and warranty by the Borrower as of
the date of such extension of credit that the applicable conditions contained in
this Section 6.2 have been satisfied.
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SECTION 7. AFFIRMATIVE COVENANTS
The Borrower hereby agrees that, so long as any Commitment remains in
effect, any Loan or L/C Obligation or any other monetary obligation under any
other Loan Document shall be outstanding or is due and payable to any Lender or
the Agent hereunder or under any other Loan Document, the Borrower shall and
shall cause each of the Restricted Subsidiaries to:
7.1 Financial Statements. Furnish to each of the Lenders:
(a) as soon as available, but in any event no later than 90 days after
the end of each fiscal year of the Borrower, a copy of the audited
consolidated balance sheets of the Borrower and the Restricted Subsidiaries
as at the end of such year and the related audited consolidated statements
of income and shareholders' capital (deficit) and of cash flows for such
year, setting forth in each case in comparative form the figures for the
previous year, reported on without a "going concern" or like qualification
or exception, or qualification arising out of the scope of the audit, by
Xxxxxx Xxxxxxxx LLP or other independent certified public accountants of
nationally recognized standing;
(b) as soon as available, but in any event not later than 45 days
after the end of each of the first three fiscal quarterly periods of each
fiscal year of the Borrower, the unaudited consolidated balance sheet of
the Borrower and the Restricted Subsidiaries as at the end of such quarter
and the related unaudited consolidated statements of income and of cash
flows for such quarter and the portion of the fiscal year through the end
of such quarter, setting forth in each case in comparative form the figures
for the previous year, certified by a Responsible Officer as fairly
presenting in all material respects the financial condition of the Borrower
and the Restricted Subsidiaries, taken as a whole (subject to normal
year-end audit adjustments and the absence of footnotes); and
(c) within thirty (30) days after the end of each of the first two
months for each quarter (i) statements of operation comparing such results
to (A) the Budget for that period and (B) the results of the statements of
operation for the prior year, and (ii) a balance sheet for such first two
months, and (iii) a brief written discussion and analysis by management of
such statements, including a comparison of the results versus the budgeted
results and results for comparable periods in the preceding fiscal year and
an explanation for any variances therein.
All such financial statements (not including the Budget) shall be prepared in
accordance with GAAP (except for the absence of footnotes and year end
adjustment in the case of interim financials) applied consistently throughout
the periods reflected therein and with prior periods (except as approved by such
accountants or officer, as the case may be, and disclosed therein).
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7.2 Certificates; Other Information. Furnish to each of the Lenders:
(a) concurrently with the delivery of the financial statements
referred to in Section 7.1(a), a certificate of the independent certified
public accountants reporting on such financial statements stating that in
making the examination necessary therefor they did not become aware of any
Default or Event of Default, except as specified in such certificate;
(b) concurrently with the delivery of the financial statements
referred to in Sections 7.1(a) or (b), a Compliance Certificate executed by
a Responsible Officer of the Borrower and each of the Restricted
Subsidiaries;
(c) without duplication of the financial statements delivered pursuant
to Section 7.1, within five days after the same are sent, copies of all
financial statements and reports which the Borrower sends to all of the
holders of the Senior Subordinated Notes, and within five days after the
same are filed, copies of all financial statements and reports which the
Borrower files with, the Securities and Exchange Commission or any
successor or analogous Governmental Authority;
(d) promptly, such additional financial and other information as any
Lender may from time to time reasonably request;
(e) on or before the end of each fiscal year (and in any event within
the month of December), (i) the budget for the Borrower and the Restricted
Subsidiaries, prepared on a monthly basis (the "Budget"), for the next
succeeding fiscal year setting forth in satisfactory detail the projected
revenues and expenses, including, without limitation, Capital Expenditures,
broadcast cash flow, Corporate Overhead Expense, EBITDA, Fixed Charges and
Consolidated Interest Expense and the underlying assumptions therefor and
the latest quarterly Arbitron ratings for each Station showing the 12+
share of audience (as designated by Arbitron) and the Borrower's target
demographic share of audience;
(f) within 10 days of any changes thereto, supplements to Schedules
5.14(a), 5.22(b), 5.23, 5.24, 5.25 and 5.27; and
(g) on or before the 90th day after the end of each fiscal year of the
Borrower, updated versions of the five year projections for the Borrower
and the Restricted Subsidiaries delivered to the Agent pursuant to Section
6.1(l)(ii), setting forth in satisfactory detail the changes to such
financial projections and the underlying assumptions thereto.
7.3 Payment of Obligations. Pay, discharge or otherwise satisfy at or
before maturity or before they become delinquent, as the case may be, all its
material obligations of whatever nature, except (a) where the amount or validity
thereof is currently being contested in good faith by appropriate proceedings
and reserves in conformity with GAAP with respect thereto have
73
been provided on the books of the Borrower or the relevant Restricted
Subsidiary, as the case may be or (b) where the failure to so pay, discharge or
satisfy, could not reasonably be expected to have a Material Adverse Effect.
7.4 Conduct of Business and Maintenance of Existence, etc. (a) Preserve,
renew and keep in full force and effect its organizational existence and take
all reasonable action to maintain all material rights, privileges and franchises
necessary for the conduct of its business except as otherwise permitted pursuant
to Section 8.4.
(b) Comply with all Contractual Obligations and applicable Requirements of
Law, except to the extent that failure to comply therewith could not reasonably
be expected to have a Material Adverse Effect.
7.5 Maintenance of Property; Insurance. (a) Keep all material property
useful and necessary in its business in good working order and condition
(ordinary wear and tear excepted) consistent with customary practices in the
industry of the Borrower; maintain with financially sound and reputable
insurance companies insurance on all its property in at least such amounts and
against at least such risks as are usually insured against in the same general
area by companies engaged in the same or a similar business; and furnish to the
Agent certificates of insurance from time to time received by it for each such
policy of insurance including insurance policies evidencing the Borrower's
compliance with Section 7.5(b).
(b) The Borrower shall cause (i) the Agent to be named, in a manner
reasonably satisfactory to the Agent, (a) as lender loss payee for the benefit
of the Lenders under all policies of casualty insurance maintained by the
Borrower and the Restricted Subsidiaries with respect to Collateral and (b) the
Lenders to be named as an additional insured on all policies of liability
insurance maintained by the Borrower and the Restricted Subsidiaries; and (ii)
all insurance policies to contain a provision that the policy may not be
canceled, terminated or modified without thirty (30) days' prior written notice
to the Agent.
7.6 Inspection of Property; Books and Records; Discussions. Keep and
maintain a system of accounting established and administered in accordance with
sound business practices and keep and maintain proper books of record and
accounts; and permit representatives of any Lender to visit and inspect any of
its properties and examine and make abstracts from any of its books and records
during normal business hours and as often as may reasonably be requested and
upon reasonable notice and to discuss the business, operations, properties and
financial and other condition of the Borrower and the Restricted Subsidiaries
with officers and employees of the Borrower and the Restricted Subsidiaries and
with their independent certified public accountants; provided that
representatives of the Borrower designated by a Responsible Officer may be
present at any such meeting with such accountants.
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7.7 Notices. Promptly after the Borrower obtains knowledge thereof, give
notice to the Agent and each Lender of:
(a) the occurrence of any Default or Event of Default;
(b) any (i) default or event of default under any Contractual
Obligation of the Borrower or any of the Restricted Subsidiaries or (ii)
litigation, investigation or proceeding which may exist at any time between
the Borrower or any of the Restricted Subsidiaries and any Governmental
Authority, which in either case could reasonably be expected to have a
Material Adverse Effect;
(c) any litigation or proceeding affecting the Borrower or any of the
Restricted Subsidiaries (i) which could reasonably be expected to result in
an adverse judgment of $1,000,000 or more and which is not covered by
insurance or (ii) in which injunctive or similar relief is sought which in
the case of this clause (ii) could reasonably be expected to materially
interfere with the ordinary conduct of business of the Borrower or any of
the Restricted Subsidiaries;
(d) the following events, as soon as possible and in any event within
30 days after the Borrower knows thereof: (i) the occurrence of any
Reportable Event with respect to any Plan, a failure to make any required
contribution to a Plan, the creation of any Lien in favor of the PBGC or a
Plan or any withdrawal from, or the termination, Reorganization or
Insolvency of, any Multiemployer Plan or (ii) the institution of
proceedings or the taking of any other action by the PBGC or the Borrower
or any Commonly Controlled Entity or any Multiemployer Plan with respect to
the withdrawal from, or the terminating, Reorganization or Insolvency of,
any Plan;
(e) promptly after the filing or mailing thereof, and in any event
within five days thereafter, a copy of each material application,
statement, report, registration statement, notice or other filing which is
(i) filed with the FCC by or on behalf of any Loan Party, or of which any
Loan Party has knowledge, with respect to or affecting a Station owned
directly or indirectly by any Loan Party, (ii) made with the Securities and
Exchange Commission or (iii) distributed to the public shareholders or
debtholders of the Borrower generally, and, promptly on the request of any
Lender, a copy of any other statement, report, notice or other filing filed
or made with (x) the FCC by or on behalf of any Loan Party, or of which any
Loan Party has knowledge or (y) any other Tribunal;
(f) promptly after such occurrence, and in any event within five days
thereafter, notice of any situation in which on-air broadcasting operations
of any Station are interrupted for more than 24 consecutive hours;
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(g) promptly after any officer of any Loan Party becomes aware
thereof, and in any event within five days thereafter, information and a
copy of any notice received by any Loan Party from the FCC or other
Tribunal or any Person that concerns (i) any event or circumstance that
could reasonably be expected to materially adversely affect any Necessary
Authorization and (ii) any notice of abandonment, expiration, revocation,
material impairment, nonrenewal or suspension of any Necessary
Authorization, together with a written explanation of any such event or
circumstance or the circumstances surrounding such abandonment, expiration,
revocation, material impairment, nonrenewal or suspension;
(h) promptly after any officer of any Loan Party becomes aware
thereof, and in any event within five days thereafter, notice of any
default or breach of any term or provision by any Person in connection with
any LMA Agreement, any Material Lease or any other material Contractual
Obligation of such Loan Party, together with a written explanation of the
circumstances surrounding such default or breach and what action any Loan
Party plans to take with respect thereto; and
(i) any development or event which could reasonably be expected to
have a Material Adverse Effect.
Each notice pursuant to this Section (other than pursuant to clause (e)) shall
be accompanied by a statement of a Responsible Officer setting forth details of
the occurrence referred to therein and stating what action is proposed to be
taken with respect thereto.
7.8 Environmental Laws. (a) Comply with, and use reasonable efforts to
require compliance by all tenants and subtenants, if any, with, all applicable
Environmental Laws and obtain and comply with and maintain, and use reasonable
efforts to require that all tenants and subtenants obtain and comply with and
maintain, any and all licenses, approvals, notifications, registrations or
permits required by applicable Environmental Laws except, in each case, to the
extent that failure to do so could not be reasonably expected to have a Material
Adverse Effect.
(b) Comply with all lawful orders and directives of all Governmental
Authorities regarding Environmental Laws except to the extent that the same are
being contested in good faith by appropriate proceedings diligently pursued or
could not reasonably be expected to have a Material Adverse Effect.
7.9 Collateral. (a) To secure full and complete payment and performance of
the Obligations, the Borrower shall, and shall cause each of the Restricted
Subsidiaries to, grant and convey to and create in favor of, the Agent for the
ratable benefit of the Lenders a continuing first priority (subject, except for
Equity Interests, to any prior Liens permitted by Section 8.3) perfected Lien
and security interest in, to and on all of the Collateral (other than the Equity
Interests of Unrestricted Subsidiaries) of the Borrower and such Restricted
Subsidiaries (except to the extent prohibited by law or as otherwise provided in
the Security Agreements or Intellectual Property
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Security Agreements) including but not limited to the following: (i) all of the
Borrower's and such Restricted Subsidiaries' present and future assets (other
than Equity Interests in Unrestricted Subsidiaries), including, without
limitation, their equipment, inventory, accounts receivable, instruments,
general intangibles, intellectual property and real estate (in each case, unless
otherwise agreed by the Agent); and (ii) all of the Equity Interests of each
Restricted Subsidiary owned by the Borrower or any other Restricted Subsidiary,
now owned or hereafter acquired by the Borrower or such other Restricted
Subsidiary.
(b) With respect to any new Restricted Subsidiary created or acquired after
the Effective Date, (i) the Borrower, and/or any Restricted Subsidiary owning
the Equity Interests of such new Restricted Subsidiary, shall promptly execute
and deliver to the Agent such amendments to the Pledge Agreements of the
applicable Loan Party as the Agent deems necessary or advisable in order to
grant to the Agent, for the benefit of the Lenders, a perfected first priority
security interest in the Equity Interests of such new Restricted Subsidiary,
(ii) in the case of any such new Restricted Subsidiary, such new Restricted
Subsidiary shall promptly execute and deliver to the Agent a Guaranty, Pledge
Agreement, Security Agreement and, if necessary, an Intellectual Property
Security Agreement, (iii) the applicable Loan Party owning Equity Interests of
the new Restricted Subsidiary and such new Restricted Subsidiary shall deliver
any certificates representing the Equity Interests of such new Restricted
Subsidiary and any Restricted Subsidiary of such new Restricted Subsidiary,
respectively, together with undated stock powers, in blank, executed and
delivered by a duly authorized officer of the applicable Loan Party, (iv) the
applicable Loan Party owning Equity Interests of the new Restricted Subsidiary
and such new Restricted Subsidiary shall take such other actions as shall be
necessary or advisable to grant to the Agent for the benefit of the Lenders a
perfected first priority security interest in the assets of, and Equity
Interests in, such new Restricted Subsidiary, including, without limitation, the
filing of such Uniform Commercial Code financing statements as may be requested
by the Agent, and (v) if requested by the Agent, the Borrower shall cause to be
delivered to the Agent legal opinions relating to the matters described in the
preceding clauses (i), (ii), (iii) and (iv), which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Agent.
(c) With respect to any newly acquired assets or transfers of assets to the
Borrower or a Restricted Subsidiary (other than Equity Interests in Unrestricted
Subsidiaries), promptly after acquiring or receiving any such asset, execute and
deliver or cause to be delivered to the Agent in a form reasonably acceptable to
the Agent (i) one or more Mortgages (unless otherwise agreed by the Agent),
Pledge Agreements, Security Agreements and/or Intellectual Property Security
Agreements which grant to the Agent a first priority perfected security interest
in such assets (subject, except for Equity Interests, to any prior Liens
permitted by Section 8.3 and as otherwise provided in the Security Agreements
and Intellectual Property Security Agreements) and (ii) such additional
agreements and other documents as the Agent reasonably deems necessary to
establish a valid, enforceable and perfected first priority security interest in
such Collateral including but not limited to Collateral consisting of
Intellectual Property (subject, except for Equity Interests, to any
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Liens permitted by Section 8.3 and as otherwise provided in the Security
Agreements and Intellectual Property Security Agreements).
(d) Upon request of the Agent, promptly execute and deliver or cause to be
executed and delivered to the Agent in a form reasonably acceptable to the Agent
(i) one or more Mortgages, Pledge Agreements, Security Agreements and/or
Intellectual Property Security Agreements which grant to the Agent a first
priority perfected security interest (subject, except for Equity Interests, to
any Liens permitted by Section 8.3 and as otherwise provided in the Security
Agreements and Intellectual Property Security Agreements) in such Collateral of
the Borrower or a Restricted Subsidiary, including Equity Interests of direct or
indirect Restricted Subsidiaries, as shall be specified by the Agent and (ii)
such additional agreements and other documents as the Agent reasonably deems
necessary to establish a valid, enforceable and perfected first priority
security interest in such property or Equity Interests.
7.10 Use of Proceeds. The Borrower shall use the proceeds of the Loans and
the Letters of Credit only (i) to finance a portion of the costs for the
acquisition of all of the stock of Xxxx, (ii) to refund and replace the Existing
Credit Agreement, (iii) to fund Permitted Acquisitions and (iv) for working
capital and general corporate purposes.
7.11 New Restricted Subsidiaries. Immediately upon the creation or
acquisition thereof, the Borrower shall notify the Agent about any newly created
or acquired Restricted Subsidiary and shall provide the Agent with the Loan
Documents required pursuant to Section 7.9 and an updated Schedule 5.14.
7.12 Taxes. The Loan Parties shall file all necessary and material Tax
Returns and pay when due and any and all material Taxes. Notwithstanding
anything to the contrary contained in the Mortgages, the Loan Parties shall not
be in default of any Mortgage for the failure to pay any Taxes due with respect
to the property covered thereby so long as such Taxes are being contested in
good faith by appropriate proceedings and with respect to which adequate
reserves are being maintained in accordance with GAAP.
7.13 Further Assurances. Each Loan Party shall make, execute or endorse,
and acknowledge and deliver or file, or cause the same to be done, all such
notices, certifications, documents, instruments and agreements, and shall take
or cause to be taken such other actions as the Agent may, from time to time,
deem reasonably necessary or appropriate in connection with this Agreement or
any of the other Loan Documents and the obligation of such Loan Party to carry
out the terms and conditions of this Agreement and the other Loan Documents to
which it is a party, including, without limitation, each Loan Party shall
perform such acts and duly authorize, execute, acknowledge, deliver, file and
record such additional assignments, security agreements, pledge agreements,
deeds of trust, mortgages, financing statements, and other agreements,
documents, instruments and certificates as the Agent may deem reasonably
necessary or appropriate in order to create, perfect and maintain the Liens in
favor of the Agent for the ratable benefit of the Lenders in
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and to the Collateral and preserve and protect the Rights of the Lenders
hereunder, under the other Loan Documents and in and to the Collateral. Each
Loan Party acknowledges that certain transactions contemplated by this Agreement
and the other Loan Documents, and certain actions which may be taken by the
Agent or the Lenders in the exercise of their Rights under this Agreement or any
other Loan Document, may require the consent of the FCC. If the Agent reasonably
determines that the consent of the FCC is required in connection with the
execution, delivery or performance of any of the aforesaid documents or any
documents delivered to the Agent or the Lenders in connection therewith or as a
result of any action which may be taken or be proposed to be taken pursuant
thereto, then each Loan Party, at its sole cost and expense, shall use its best
efforts to secure such consent and to cooperate with the Agent and the Lenders
in any such action taken or proposed to be taken by the Agent or any Lender.
7.14 Appraisals of Collateral. If at any time the Agent reasonably
determines that it must have current appraisals of any of the Collateral to
comply with any Law, upon request by the Agent (which request shall not be made
more frequently than once every 12 months), the Borrower shall cooperate with
the Agent to enable the Agent to obtain appraisals of the Collateral, the cost
of which shall be paid by the Borrower.
SECTION 8. NEGATIVE COVENANTS
The Borrower hereby agrees that, so long as any Commitment remains in
effect, any Loan or L/C Obligation or any other monetary Obligation under any
other Loan Document is outstanding, or is due and payable to any Lender or the
Agent hereunder or under any other Loan Document, the Borrower shall not, and
the Borrower shall not permit any of the Restricted Subsidiaries to:
8.1 Financial Condition Covenants.
(a) Capital Expenditures. Permit Capital Expenditures of the Borrower
and the Restricted Subsidiaries at any time during any fiscal year set
forth below to be greater than the amounts set forth opposite such fiscal
years below:
Fiscal Year Amount
----------- ------
1998 $1,900,000
1999 and thereafter $1,200,000 per fiscal year
Notwithstanding the foregoing, (i) in the event that the amount of Capital
Expenditures made by the Borrower and the Restricted Subsidiaries during any
relevant period is less than the Capital Expenditure limitation for such
applicable period set forth above, then the difference between such limitation
and the amount of Capital Expenditures actually expended shall be added to the
Capital Expenditure limitation for the next applicable period, provided that in
no
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event shall any such addition be used in determining any additions to any
subsequent period and (ii) the foregoing Capital Expenditure limitations shall
be adjusted upward by $100,000 per radio station acquired by the Borrower or any
Restricted Subsidiary after the Effective Date pursuant to Section 8.7(c).
(b) Interest Coverage Ratio. Permit the Interest Coverage Ratio at any
time during any period set forth below to be less than the ratio set forth
opposite such period:
Period Ratio
------ -----
Effective Date through and including December 31, 1998 1.80 to 1.00
January 1, 1999 through and including December 31, 2001 2.00 to 1.00
January 1, 2002 and thereafter 2.25 to 1.00
(c) Leverage Ratio. Permit the Leverage Ratio at any time during any
period set forth below to be more than the ratio set forth opposite such
period:
Period Ratio
------ -----
Effective Date through and including June 30, 1998 7.00 to 1.00
July 1, 1998 through and including March 31, 2000 6.50 to 1.00
April 1, 2000 through and including September 30, 2000 6.00 to 1.00
October 1, 2000 through and including March 31, 2001 5.50 to 1.00
April 1, 2001 through and including September 30, 2001 5.00 to 1.00
October 1, 2001 through and including March 31, 2002 4.75 to 1.00
April 1, 2002 through and including December 31, 2002 4.50 to 1.00
January 1, 2003 and thereafter 4.00 to 1.00
(d) Senior Leverage Ratio. Permit the Senior Leverage Ratio at any
time during any period set forth below to be more than the ratio set forth
opposite such period:
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Period Ratio
------ -----
Effective Date through and including December 31, 1998 4.00 to 1.00
January 1, 1999 through and including December 31, 1999 3.75 to 1.00
January 1, 2000 through and including December 31, 2000 3.50 to 1.00
January 1, 2001 and thereafter 2.25 to 1.00
(e) Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage
Ratio at any time during any period set forth below to be less than the
ratio set forth opposite such period:
Period Ratio
------ -----
Effective Date through and including December 31, 1998 1.15 to 1.00
January 1, 1999 and thereafter 1.25 to 1.00
8.2 Limitation on Indebtedness and Preferred Stock. Create, incur, assume
or suffer to exist any Indebtedness of the Borrower or any Restricted Subsidiary
of the Borrower or issue any Preferred Stock, except:
(a) Indebtedness under this Agreement or any other Loan Document;
(b) intercompany Indebtedness by and among the Borrower and any of its
Wholly Owned Restricted Subsidiaries;
(c) in the case of the Borrower, Interest Hedge Agreements entered
into with the Lenders or any of them for the purpose of hedging against
interest rate fluctuations with respect to variable rate Indebtedness of
the Borrower or any of the Restricted Subsidiaries;
(d) (i) in the case of the Borrower, Indebtedness in respect of the
Senior Subordinated Indebtedness and (ii) in the case of the Restricted
Subsidiaries, Indebtedness in respect of the Senior Subordinated Guaranties
as in effect on the date hereof;
(e) provided no Default or Event of Default shall have occurred and be
continuing either before or immediately after giving effect to the
incurrence thereof, the Borrower may incur up to $60,000,000 of
Subordinated Debt (other than Disqualified Stock) so long as (i) such
Subordinated Debt (A) is unsecured, (B) has a final maturity and a weighted
average life no earlier and no shorter than the Senior Subordinated
Indebtedness,
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(C) the interest rate therefore is a market interest rate as of the time of
the incurrence thereof, (D) the terms and conditions applicable thereto
(including but not limited to the subordination provisions thereof) shall
be no more favorable to the holders or lenders of such Subordinated Debt
than the terms, conditions and provisions as are applicable to the Senior
Subordinated Indebtedness and (E) the Guaranty Obligations of the
Restricted Subsidiaries, if any, relating thereto are no more favorable to
the lenders of such Subordinated Debt than the Senior Subordinated
Guaranties and (ii) the Borrower has previously delivered to each of the
Lenders updated versions of the five year projections for the Borrower and
the Restricted Subsidiaries delivered to the Agent pursuant to Section
6.1(l)(ii), demonstrating that the Borrower will be in compliance with the
Interest Coverage Ratio for the 12 month period following the incurrence of
such Subordinated Debt;
(f) Indebtedness of the Borrower and the Restricted Subsidiaries of up
to $2,500,000 in the aggregate at any time outstanding consisting of
Purchase Money Indebtedness and/or Capital Lease Obligations;
(g) Indebtedness existing on the Effective Date and set forth on
Schedule 8.2;
(h) Indebtedness of the Borrower or any Restricted Subsidiary
consisting of Permitted Sales Representations in each case incurred in
connection with the disposition of any assets of the Borrower or any
Restricted Subsidiary; and
(i) unsecured Indebtedness of the Borrower of up to $5,000,000 in the
aggregate at any time outstanding.
8.3 Limitation on Liens. Create, incur, assume or suffer to exist any Lien
upon any of its property, assets or revenues, whether now owned or hereafter
acquired, except for:
(a) Customary Permitted Liens;
(b) Liens created pursuant to the Security Documents;
(c) any attachment, prejudgment or judgment Lien in existence less
than sixty consecutive calendar days after the entry thereof, or with
respect to which execution has been stayed, or with respect to which
payment in full above any applicable customary deductible is covered by
insurance or a bond;
(d) Liens securing up to $2,500,000 in the aggregate at any time
outstanding of Purchase Money Indebtedness and Capital Lease Obligations
permitted under Section 8.2(f);
(e) Liens securing up to $100,000 of Indebtedness in the aggregate at
any time outstanding; and
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(f) the option of Great Lakes Radio, Inc. to purchase the property
covered by that certain Lease Agreement between Great Lakes Radio, Inc. and
Xxxx as in effect on the Effective Date.
8.4 Limitation on Fundamental Changes. Enter into any merger, consolidation
or amalgamation with any Person, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer
or otherwise dispose of, all or substantially all of its property, business or
assets to any Person, except:
(a) a Restricted Subsidiary (other than a License Subsidiary) may
merge into or be acquired by the Borrower if the Borrower is the survivor
thereof;
(b) a Restricted Subsidiary (other than a License Subsidiary) may
merge into or be acquired by a Wholly Owned Restricted Subsidiary if the
Wholly Owned Restricted Subsidiary is the survivor thereof;
(c) the Borrower or any Restricted Subsidiary (other than a License
Subsidiary) may sell, lease, transfer or otherwise dispose of any or all of
its assets in a transaction permitted under Section 8.5;
(d) in connection with Permitted Acquisitions where the Borrower or a
Wholly Owned Restricted Subsidiary is the survivor thereof; and
(e) a License Subsidiary may merge into or be acquired by another
License Subsidiary.
Notwithstanding anything to the contrary contained in the foregoing, no License
Subsidiary shall own or hold any assets other than Operating Agreements and FCC
Licenses and other Necessary Authorizations relating to the Stations or engage
in any business other than the ownership (or holding) and maintenance of
Operating Agreements and FCC Licenses.
8.5 Limitation on Sale of Assets. Convey, sell, lease, assign, exchange,
transfer or otherwise dispose of any of its property, business or assets
(including, without limitation, receivables and leasehold interests but
excluding Equity Interests of the Borrower) (including by way of a Sale and
Leaseback Transaction) other than in the ordinary course of business, or issue
or sell Equity Interests of any of the Restricted Subsidiaries (other than in
connection with its formation and then only to the Borrower or another
Restricted Subsidiary), in each case, whether by a single transaction or a
series of related transactions, to any Person (each of the foregoing, a
"Disposition"), except:
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(a) Dispositions of property or assets (other than Equity Interests)
between the Borrower and Wholly Owned Restricted Subsidiaries or between
Wholly Owned Restricted Subsidiaries provided that in the case of the
Borrower, such Disposition is less than substantially all of its assets;
(b) the sale of capital stock of Unrestricted Subsidiaries; and
(c) other Dispositions of property or assets (other than Equity
Interests), provided that such Disposition is less than substantially all
of the assets of the Borrower or any Restricted Subsidiary, as the case may
be, and provided further that all of the following conditions are
satisfied: (i) the Borrower or such Restricted Subsidiary receives
consideration at the time of such Disposition at least equal to the Fair
Market Value of the assets subject to such Disposition, as determined and
approved by the Board of Directors of the Borrower in the case of such
Dispositions with a Fair Market Value of $1,000,000 or more, and at least
80% of the consideration thereof received by the Borrower or such
Restricted Subsidiary is in the form of cash, (ii) any such Disposition
shall be on a non-recourse basis, except that the Borrower or such
Restricted Subsidiary may make commercially reasonable representations,
warranties and indemnities with respect to such properties or assets that
are normal and customary in the business of the Borrower ("Permitted Sale
Representations"), (iii) no Default or Event of Default shall have occurred
and be continuing either before or immediately after the consummation of
such transaction and (iv) the Borrower shall, to the extent required, pay
the proceeds to the Agent in accordance with Section 4.2(d) when and if
due.
Upon request by and at the expense of the Borrower, the Agent shall immediately
release any Liens arising under the Security Documents with respect to any
Collateral which is sold or otherwise disposed of in compliance with the terms
of Section 8.5(b).
8.6 Limitation on Restricted Payments; Other Payment Limitations. Make any
Restricted Payments, except (a) repurchases of Common Equity of the Borrower
from any employee of the Borrower (other than a Principal Shareholder) whose
employment with the Borrower or any Restricted Subsidiary has ceased, provided
that the aggregate amount of such repurchases shall not exceed $1,000,000 in the
aggregate during any fiscal year and provided further that a Responsible Officer
of the Borrower delivers a certificate to and in favor of the Agent and the
Lenders certifying that no Default or Event of Default shall have occurred and
be continuing either before or immediately after the making of such Restricted
Payment; and (b) the repurchase or redemption of all of the Senior Preferred
Stock and accrued dividends thereon outstanding on the Effective Date,
concurrently with the closing of the initial Public Equity Offering of the
Borrower and with a portion of the proceeds therefrom.
8.7 Limitation on Acquisitions. Purchase or enter into any agreement to
purchase or option to purchase (including letters of intent) any stock, bonds,
notes, debentures or
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other securities of, or any assets constituting all or any significant part of a
radio broadcasting station of, or a business unit of, any Person (collectively,
"Acquisitions") without the prior written consent of the Majority Lenders;
provided, however, that so long as (i) no Default or Event of Default shall have
occurred and be continuing either before or immediately after such Acquisition,
(ii) the Borrower has closed or is closing concurrently with such Acquisition
its initial Public Equity Offering and received gross proceeds therefrom in an
amount not less than $50,000,000 and (iii) all of the Senior Preferred Stock and
accrued dividends thereon outstanding on the Effective Date shall have been
repurchased or is being repurchased concurrently with such Acquisition and all
of the Warrants outstanding on the Effective Date shall have been exercised for
common stock of the Borrower pursuant to the terms and provisions of the Warrant
Certificates as in effect on the Effective Date:
(a) the Borrower may purchase all of the assets or capital stock of
Radio One Atlanta, Inc. for total cash consideration payable to the sellers
thereof in an amount not to exceed $25,000,000, provided that (x) the
Borrower has complied with the provisions of Section 8.9, (y) all of the
Indebtedness of Radio One Atlanta, Inc. shall have been paid in full in
connection with such Acquisition, and (z) Radio One Atlanta, Inc. shall be
merged with or into the Borrower or a Wholly Owned Restricted Subsidiary or
will become a Wholly Owned Restricted Subsidiary;
(b) the Borrower may purchase substantially all of the assets relating
to radio station WWBR-FM, licensed to Mount Clemens, Michigan for total
consideration not to exceed $40,000,000 or all of the capital stock of
Allur Detroit, Inc. (the owner of such radio station) for total
consideration not to exceed $30,000,000, provided that all of such assets
or capital stock shall be owned by the Borrower or a Wholly Owned
Restricted Subsidiary or Allur Detroit, Inc. shall, concurrently with such
Acquisition, become a Wholly Owned Restricted Subsidiary; and
(c) the Borrower may make Acquisitions of radio broadcasting stations
(or 100% of the capital stock of any Person owning radio broadcasting
stations, provided that, (x) concurrently with such Acquisition, such
Person becomes a Wholly Owned Restricted Subsidiary of the Borrower), (y)
the total consideration for such Acquisitions singly or in the aggregate do
not exceed $50,000,000 in the aggregate over the term of this Agreement and
(z) such Acquisitions are in markets ranked by Arbitron as one of the 30
largest markets in the United States (the transactions described in clauses
(a), (b) and (c) above or otherwise permitted by the Majority Lenders being
herein referred to collectively as "Permitted Acquisitions").
8.8 Investments. Make any Investment in any Person, other than:
(a) Permitted Investments;
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(b) provided no Default or Event of Default shall have occurred and be
continuing both before and immediately after the making of such Investment,
Investments after the Effective Date in an amount not to exceed $5,000,000
in the aggregate over the term of this Agreement; and
(c) Permitted Acquisitions.
8.9 Limitation on Transactions with Affiliates. (a) The Borrower shall not,
and shall not permit any Restricted Subsidiary to, directly or indirectly, sell,
lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into any contract, agreement,
understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate of the Borrower or any Restricted Subsidiary (each of the foregoing,
an "Affiliate Transaction"), unless (i) such Affiliate Transaction is on terms
that are no less favorable to the Borrower or the relevant Restricted Subsidiary
than those that would have been obtained in a comparable transaction by the
Borrower or such Restricted Subsidiary with a non-Affiliated Person, (ii) such
Affiliate Transaction is approved by a majority of the disinterested members of
the Borrower's Board of Directors and (iii) the Borrower delivers to the Agent
(A) with respect to any Affiliate Transaction involving aggregate payments in
excess of $1,000,000, an Officers' Certificate certifying that such Affiliate
Transaction complies with clauses (i) and (ii) above and (B) with respect to any
Affiliate Transaction (or series of related transactions) with an aggregate
value in excess of $5,000,000, an opinion from a nationally recognized
investment bank to the effect that the transaction is fair to the Borrower or
the Restricted Subsidiary, as the case may be, from a financial point of view.
(b) The provisions of paragraph (a) above shall not prohibit:
(i) employment arrangements (including customary benefits
thereunder) entered into by the Borrower or any of its Restricted
Subsidiaries in the ordinary course of business and consistent with
the past practice of the Borrower or such Restricted Subsidiary;
(ii) transactions solely between or among the Borrower and its
Wholly Owned Restricted Subsidiaries or solely between or among Wholly
Owned Restricted Subsidiaries;
(iii) transactions permitted under Section 8.6;
(iv) any agreement as in effect on the Effective Date and listed
on Schedule 8.9 or any amendment thereto or any transaction
contemplated thereby (including pursuant to any amendment thereto) and
any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Lenders in
any material respect than the original agreement as in effect on the
Effective Date;
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(v) the existence of, or the performance by the Borrower or any
of the Restricted Subsidiaries of its obligations under the terms of,
any stockholders agreement (including any registration rights
agreement or purchase agreement related thereto) to which it is a
party on the Effective Date;
(vi) services provided to any Unrestricted Subsidiary of the
Borrower for fees approved by a majority of the disinterested members
of the Board of Directors of the Borrower; and
(vii) subject to the terms of this Agreement, including but not
limited to Sections 4.2(e), 8.2, 8.5 and 8.12, the issuance, sale or
other disposition of any Equity Interest (other than Disqualified
Stock) of the Borrower, including any equity-related agreements
relating thereto such as registration rights and voting agreements so
long as such agreements do not result in such Equity Interests being
Disqualified Stock.
8.10 Limitation on Restrictions on Restricted Subsidiary Distributions.
Enter into or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary of the Borrower to (a)
pay dividends or make any other distributions in respect of any Equity Interests
of such Restricted Subsidiary held by, or pay any Indebtedness owed to, the
Borrower or any other Restricted Subsidiary of the Borrower, (b) make loans or
advances to the Borrower or any other Restricted Subsidiary of the Borrower or
(c) transfer any of its assets to the Borrower or any other Restricted
Subsidiary of the Borrower, except any encumbrance or restriction existing under
or by reason of:
(i) applicable Law;
(ii) by reason of customary nonassignment provisions in leases entered
into in the ordinary course of business and consistent with past practices;
(iii) Purchase Money Indebtedness for property acquired in the
ordinary course of business that only impose restrictions on the property
so acquired;
(iv) this Agreement;
(v) agreements relating to the financing of the acquisition of real or
tangible personal property acquired after the Effective Date, provided that
such encumbrance or restriction relates only to the property that is
acquired and, in the case of any encumbrance or restriction that
constitutes a Lien, such Lien constitutes a Purchase Money Lien; or
(vi) any restriction or encumbrance contained in contracts for sale of
assets in respect of the assets being sold pursuant to such contract.
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8.11 Limitation on Lines of Business. Enter into any business, either
directly or through any Restricted Subsidiary other than the radio broadcast
business and activities directly related thereto (each, a "Permitted Line of
Business"); provided, however, that no more than 3% of the fair market value of
the assets of the Borrower and the Restricted Subsidiaries (without duplication)
may, at any time, be in other media or entertainment businesses.
8.12 Limitation on Sale or Issuance of Equity Interests. Issue, sell,
assign, pledge or otherwise encumber or dispose of any shares of Equity
Interests of the Borrower or the Restricted Subsidiaries, except (a) the
Restricted Subsidiaries may issue or sell Equity Interests to the Borrower, (b)
the Equity Interests of the Borrower and the Restricted Subsidiaries may be
pledged pursuant to the Pledge Agreements, (c) the Borrower may issue common
stock in connection with its initial Public Equity Offering, provided that
concurrently with the closing of such initial Public Equity Offering, the
Borrower shall have repurchased all of the Senior Preferred Stock outstanding on
the Effective Date (other than the Senior Preferred Stock issued in connection
with exercise of the Allied Warrant) with a portion of the proceeds from such
initial Public Equity Offering and provided, further that all of the Warrants
outstanding on the Effective Date shall have been exercised for common stock of
the Borrower pursuant to the terms and provisions of the Warrant Certificates as
in effect on the Effective Date, (d) prior to the closing of the Borrower's
initial Public Equity Offering, the Borrower may issue common stock of the
Borrower to employees of the Borrower or the Restricted Subsidiaries or to the
Investors upon the exercise of their Warrants, so long as all such common stock
is pledged to the Agent for the benefit of the Lenders as security for the
Obligations, (e) in connection with the exercise by Allied of the Allied
Warrant, the Borrower may issue to Allied a number of shares of the Series A 15%
Cumulative Redeemable Preferred Stock of Borrower, par value $0.01 having a
liquidation value of up to $4,000,000, provided, that no such Senior Preferred
Stock shall be issued until Allied has assumed in writing all the obligations
and liabilities under, and become a party to, the Standstill Agreement as an
"Investor" thereunder and (f) provided that (i) no Default or Event of Default
shall have occurred and be continuing either before or immediately after such
issuance or sale, (ii) the Borrower has closed its initial Public Equity
Offering, (iii) all of the Senior Preferred Stock outstanding on the Effective
Date (other than the Senior Preferred Stock issued in connection with the
exercise of the Allied Warrant) has been repurchased or redeemed and all of the
Warrants outstanding on the Effective Date have been exercised, the Borrower may
issue or sell common stock, subject to the Borrower's compliance with the
provisions of Sections 4.2(e).
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8.13 Limitation on Material Agreements. (a) No Loan Party will enter into
any amendment, modification or waiver without the prior written consent of the
Majority Lenders (i) of any term or provision of the Senior Subordinated Debt
Documents, the Standstill Agreement or the Amended and Restated Certificate of
Incorporation that is adverse in any material respect to rights of the Lenders
under the Loan Documents, or (ii) of any term or provision of the Securities
Purchase Agreement, the Warrant Agreement, the Exchange Agreement, the Preferred
Stockholders' Agreement or any other Preferred Stock Document that adds more
restrictions upon, or events of default with respect to, or is otherwise less
favorable in any respect to, the Borrower or that otherwise is in conflict with
any of the covenants of the Borrower set forth in this Agreement and the other
Loan Documents, other than waivers of compliance by any Loan Party of the terms
of any of such agreements. Notwithstanding anything to the contrary contained in
this Section 8.13, the Borrower may amend the Amended and Restated Certificate
of Incorporation in order to authorize additional shares of common stock of the
Borrower in connection with the initial Public Equity Offering of the Borrower.
(b) No Loan Party will (i) enter into any LMA Agreement other than (x) a
LMA Agreement with Broadcast Holdings, Inc. covering Station WYCB-AM and (y) LMA
Agreements allowing the Borrower or any Restricted Subsidiary to operate radio
stations to be acquired in connection with Permitted Acquisitions, or (ii)
except as required by the FCC, agree to any extension or termination of or
amendment, modification or waiver of any material term of any such LMA
Agreement, in each case without the prior written consent of the Majority
Lenders. The Borrower agrees to promptly deliver to the Agent a copy of each LMA
Agreement entered into by a Borrower or a Restricted Subsidiary on or after the
Effective Date.
(c) No Restricted Subsidiary shall operate, manage or direct the day-to-day
operations of any Station unless it has entered into an Operating Agreement with
a License Subsidiary and such Operating Agreement is in full force and effect.
8.14 Certain Intercompany Matters. Fail to (i) satisfy customary
formalities with respect to organizational separateness, including, without
limitation, (x) the maintenance of separate books and records and (y) the
maintenance of separate bank accounts in its own name; (ii) act solely in its
own name and through its authorized officers and agents, (iii) commingle any
money or other assets of any Unrestricted Subsidiary with any money or other
assets of the Borrower or any of the Restricted Subsidiaries; or (iv) take any
action, or conduct its affairs in a manner, which could reasonably be expected
to result in the separate organizational existence of the Borrower, each
Unrestricted Subsidiary and the Restricted Subsidiaries being ignored under any
circumstance.
8.15 Preferred Stock Documents. After the closing of the initial Public
Equity Offering, permit any of the Preferred Stock Documents to contain any
redemption rights with respect to the holders of the Senior Preferred Stock
prior to one year after the Termination Date (except with respect to a change of
control as defined in the Preferred Stockholders' Agreement) or to contain any
rights whatsoever to cause a sale of any Loan Party.
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SECTION 9. EVENTS OF DEFAULT
If any of the following events shall occur and be continuing:
(a) The Borrower shall fail to pay any principal of any Loan or
Reimbursement Obligation when due in accordance with the terms hereof; or
the Borrower shall fail to pay any interest on any Loan or Reimbursement
Obligation, or any other amount payable hereunder, on or prior to the date
which is five days (or, if later, three Business Days) after any such
interest or other amount becomes due in accordance with the terms hereof;
or
(b) Any representation or warranty made or deemed made by the Borrower
or any other Loan Party herein or in any other Loan Document shall prove to
have been incorrect in any material respect on or as of the date made or
deemed made; or
(c) The Borrower or any other Loan Party shall default in the
observance or performance of any agreement contained in Sections 7.4, 7.7,
7.9, 7.10 and 7.11 or Section 8 of this Agreement or in the Pledge
Agreements; or
(d) The Borrower or any other Loan Party shall default in the
observance or performance of any other agreement contained in this
Agreement or any other Loan Document (other than as provided in paragraphs
(a) through (c) of this Section), and such default shall continue
unremedied for a period of 30 days after the Agent shall have given the
Borrower notice thereof; or
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(e) (i) The Borrower or any of the Subsidiaries shall default in
making any payment of any principal of any Indebtedness (including, without
limitation, any Guarantee Obligation, but excluding the Loans and
Reimbursement Obligations) beyond the period of grace or cure, if any,
provided in the instrument or agreement under which such Indebtedness was
created; or (ii) the Borrower or any of the Subsidiaries shall default in
making any payment of any interest on any such Indebtedness beyond the
period of grace or cure, if any, provided in the instrument or agreement
under which such Indebtedness was created; or (iii) the Borrower or any of
the Subsidiaries shall default in the observance or performance of any
other agreement or condition relating to any such Indebtedness or contained
in any instrument or agreement evidencing, securing or relating thereto, or
any other event shall occur or condition exist, the effect of which default
or other event or condition is to cause, or to permit the holder or
beneficiary of such Indebtedness (or a trustee or agent on behalf of such
holder or beneficiary) to cause, with the giving of notice if required,
such Indebtedness to become due or to be purchased or repurchased prior to
its stated maturity (or, in the case of any such Indebtedness constituting
a Guarantee Obligation, to become payable prior to the stated maturity of
the primary obligation covered by such Guarantee Obligation); provided that
a default, event or condition described in clause (i), (ii) or (iii) of
this paragraph (e) shall not constitute a Default or an Event of Default
under this Agreement unless, at the time of such default, event or
condition one or more defaults, events or conditions of the type described
in clauses (i), (ii) and (iii) of this paragraph (e) shall have occurred
with respect to Indebtedness the outstanding principal amount of which
exceeds in the aggregate $1,000,000; or
(f) (i) The Borrower or any of the Subsidiaries shall commence any
case, proceeding or other action (A) under any existing or future law of
any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or
its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial
part of its assets, or the Borrower or any of the Subsidiaries shall make a
general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Borrower or any of the Subsidiaries any case,
proceeding or other action of a nature referred to in clause (i) above
which (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed, undischarged or
unbonded for a period of 60 days; or (iii) there shall be commenced against
the Borrower or any of the Subsidiaries any case, proceeding or other
action seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its assets which
results in the entry of an order for any such relief which shall not have
been vacated, discharged, or stayed or bonded pending appeal within 60 days
from the entry thereof; or (iv) the Borrower or any of the Subsidiaries
shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in
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clause (i), (ii), or (iii) above; or (v) the Borrower or any of the
Subsidiaries shall generally not, or shall be unable to, or shall admit in
writing its inability to, pay its debts as they become due; or
(g) (i) Any Person shall engage in any "prohibited transaction" (as
defined in Section 406 of ERISA or Section 4975 of the Code) involving any
Plan, (ii) any "accumulated funding deficiency" (as defined in Section 302
of ERISA), whether or not waived, shall exist with respect to any Plan or
any Lien in favor of the PBGC or a Plan shall arise on the assets of the
Borrower or any Commonly Controlled Entity, (iii) a Reportable Event shall
occur with respect to, or proceedings shall commence to have a trustee
appointed, or a trustee shall be appointed, to administer or to terminate,
any Single Employer Plan, which Reportable Event or commencement of
proceedings or appointment of a trustee is, in the reasonable opinion of
the Majority Lenders, likely to result in the termination of such Plan for
purposes of Title IV of ERISA, (iv) any Single Employer Plan shall
terminate for purposes of Title IV of ERISA, (v) the Borrower or any
Commonly Controlled Entity shall, or in the reasonable opinion of the
Majority Lenders is likely to, incur any liability in connection with a
withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
Plan or (vi) any other event or condition shall occur or exist with respect
to a Plan; and in each case in clauses (i) through (vi) above, such event
or condition, together with all other such events or conditions, if any,
could reasonably be expected to have a Material Adverse Effect; or
(h) One or more judgments or decrees shall be entered against the
Borrower or any of the Subsidiaries involving in the aggregate a liability
(not paid or fully covered by insurance or indemnities) of $1,000,000 or
more, and all such judgments or decrees shall not have been vacated,
discharged, stayed or bonded pending appeal within 60 days after the entry
thereof; or
(i) (i) Any material provision of the Loan Documents shall cease, for
any reason, to be in full force and effect, or the Borrower or any other
Loan Party shall so assert or (ii) the Lien created by any of the Security
Documents shall cease to be enforceable and of the same effect and priority
purported to be created thereby; or
(j) A Change of Control shall occur or the Borrower; or
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(k) The occurrence of any of the following: (i) Borrower or any Loan
Party shall lose, fail to keep in force, suffer the termination, suspension
or revocation of or terminate, forfeit or suffer an amendment to any FCC
License or other material license at any time held by it, the loss,
termination, suspension or revocation of which could reasonably be expected
to have a Material Adverse Effect on the operations of any Loan Party or
any Loan Party's ability to perform its obligations under this Agreement or
the other Loan Documents; (ii) any proceeding shall be brought by any
Person challenging the validity or enforceability of any Necessary
Authorization of a Loan Party except when such proceeding could not
reasonably be expected to result in the loss of such Necessary
Authorization or to have a Material Adverse Effect; (iii) appropriate
proceedings for the renewal of any Necessary Authorization shall not be
commenced prior to the expiration thereof or if such Necessary
Authorization is not renewed or otherwise made available for the use of the
applicable Loan Party; (iv) any Loan Party shall fail to comply with the
Communications Act or any rule or regulation promulgated by the FCC and
such failure to comply results in a fine in excess of $1,000,000; (v) the
FCC shall materially and adversely modify any Necessary Authorization or
shall suspend, revoke or terminate or shall commence proceedings to
materially and adversely modify, suspend, revoke or terminate any Necessary
Authorization and such proceedings shall not be dismissed or discharged
within the earlier of twelve months from the commencement of such
proceeding or 30 days prior to any date set for any suspension, revocation
or termination; or (vi) any Contractual Obligation which is materially
necessary to the operation of the broadcasting operations of any Loan Party
shall be revoked or terminated and not replaced by a substitute reasonably
acceptable to the Majority Lenders within 30 days after such revocation or
termination; or
(l) Any breach or default shall occur under any of the Senior
Subordinated Debt Documents or the Senior Subordinated Indebtedness is
accelerated; or
(m) The occurrence of any of the following: (i) the Borrower shall
redeem, or the Investors shall exercise any right to demand that the
Borrower redeem, any shares of the Senior Preferred Stock, except as
otherwise expressly permitted hereunder, (ii) the occurrence of a
Redemption Event under the Preferred Stockholders' Agreement (unless
waived, at any time prior to an Acceleration hereunder, by the requisite
Investors thereunder) or (iii) the occurrence of any other event which
entitles the Investors to cause a sale of the Borrower; or
(n) the death, disability and/or incapacity (which disability or
incapacity renders such Person unable to discharge their respective duties
as an officer and/or director of the Borrower as previously performed by
such Person for a period of 90 consecutive days) of Xxxxxxx and Xxxxxx, and
a successor satisfactory to the Majority Lenders does not assume their
respective responsibilities and positions within 60 days of such death,
disability and/or incapacities;
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(o) any Loan Party's on-the-air broadcasting operations are
interrupted at any time for more than 5 consecutive days, unless the
broadcasting operations of all or substantially all the radio stations in
the relevant market are also interrupted for a like period of time; or
(p) the Borrower shall fail to cause any computer application that is
material to its or any of the Restricted Subsidiaries' business and
operations to be year 2000 compliant, except to the extent that such
failure could not reasonably be expected to have a Material Adverse Effect.
then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) of this Section 9 with respect to the
Borrower, automatically the Commitments shall immediately terminate and the
Loans hereunder (with accrued interest thereon) and all other amounts owing
under this Agreement and the other Loan Documents (including, without
limitation, all amounts of L/C Obligations, whether or not the beneficiaries of
the then outstanding Letters of Credit shall have presented the documents
required thereunder) shall immediately become due and payable, and (B) if such
event is any other Event of Default, either or both of the following actions may
be taken: (i) with the consent of the Majority Lenders, the Agent may, or upon
the request of the Majority Lenders, the Agent shall, by notice to the Borrower
declare the Commitments to be terminated forthwith, whereupon such Commitments
shall immediately terminate; and (ii) with the consent of the Majority Lenders,
the Agent may, or upon the request of the Majority Lenders, the Agent shall, by
notice to the Borrower, declare the Loans hereunder (with accrued interest
thereon) and all other amounts owing under this Agreement and the other Loan
Documents (including, without limitation, all amounts of L/C Obligations,
whether or not the beneficiaries of the then outstanding Letters of Credit shall
have presented the documents required thereunder) to be due and payable
forthwith (an "Acceleration"), whereupon the same shall immediately become due
and payable. With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an Acceleration
pursuant to this paragraph, the Borrower shall at such time deposit in a cash
collateral account opened by the Agent an amount equal to the aggregate then
undrawn and unexpired amount of such Letters of Credit. Amounts held in such
cash collateral account shall be applied by the Agent to the payment of drafts
drawn under such Letters of Credit, and the unused portion thereof after all
such Letters of Credit shall have expired or been fully drawn upon, if any,
shall be applied to repay other Obligations of the Borrower hereunder and under
the other Loan Documents. After all such Letters of Credit shall have expired or
been fully drawn upon, all Reimbursement Obligations shall have been satisfied,
all Loans shall have been paid in full and no other Obligations shall be due and
payable, the balance, if any, in such cash collateral account shall be returned
to the Borrower (or such other Person as may be lawfully entitled thereto).
Except as expressly provided above in this Section, presentment, demand,
protest and all other notices of any kind are hereby expressly waived.
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SECTION 10. THE AGENT
10.1 Appointment. Each Lender hereby irrevocably designates and appoints
the Agent as the administrative agent of such Lender under this Agreement and
the other Loan Documents, and each such Lender irrevocably authorizes the Agent,
in such capacity, to take such action on its behalf under the provisions of this
Agreement and the other Loan Documents and to exercise such powers and perform
such duties as are expressly delegated to the Agent by the terms of this
Agreement and the other Loan Documents, together with such other powers as are
reasonably incidental thereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement or any other Loan Document, the Agent shall not have
any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the Agent.
10.2 Delegation of Duties. The Agent may execute any of its duties under
this Agreement and the other Loan Documents by or through agents or
attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys in-fact selected by it with
reasonable care.
10.3 EXCULPATORY PROVISIONS. NEITHER THE AGENT NOR ANY OF ITS OFFICERS,
DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS-IN-FACT OR AFFILIATES SHALL BE (I)
LIABLE FOR ANY ACTION LAWFULLY TAKEN OR OMITTED TO BE TAKEN BY IT OR SUCH PERSON
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT
FOR ITS OR SUCH PERSON'S OWN GROSS NEGLIGENCE, WILLFUL MISCONDUCT OR BREACH OF
THIS AGREEMENT) OR (II) RESPONSIBLE IN ANY MANNER TO ANY OF THE LENDERS FOR ANY
RECITALS, STATEMENTS, REPRESENTATIONS OR WARRANTIES MADE BY THE BORROWER OR ANY
OFFICER THEREOF CONTAINED IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR IN ANY
CERTIFICATE, REPORT, STATEMENT OR OTHER DOCUMENT REFERRED TO OR PROVIDED FOR IN,
OR RECEIVED BY THE AGENT UNDER OR IN CONNECTION WITH, THIS AGREEMENT OR ANY
OTHER LOAN DOCUMENT OR FOR THE VALUE, VALIDITY, EFFECTIVENESS, GENUINENESS,
ENFORCEABILITY OR SUFFICIENCY OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
FOR ANY FAILURE OF THE BORROWER TO PERFORM ITS OBLIGATIONS HEREUNDER OR
THEREUNDER. THE AGENT SHALL NOT BE UNDER ANY OBLIGATION TO ANY LENDER TO
ASCERTAIN OR TO INQUIRE AS TO THE OBSERVANCE OR PERFORMANCE OF ANY OF THE
AGREEMENTS CONTAINED IN, OR CONDITIONS OF, THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR TO INSPECT THE PROPERTIES, BOOKS OR RECORDS OF THE BORROWER.
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10.4 Reliance by the Agent. The Agent shall be entitled to rely, and shall
be fully protected in relying, upon any Note, writing, resolution, notice,
consent, certificate, affidavit, letter, facsimile, statement, order or other
document or conversation believed by it to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the
Borrower), independent accountants and other experts selected by the Agent. The
Agent may deem and treat the payee of any Note as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Agent. The Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan
Document unless it shall first receive such advice or concurrence of the
Majority Lenders as it deems appropriate or it shall first be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action. The
Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement and the other Loan Documents in accordance with a
request of the Majority Lenders, and such request and any action taken or
failure to act pursuant thereto shall be binding upon all the Lenders and all
future holders of the Loans.
10.5 Notice of Default. The Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default hereunder unless the
Agent has received notice from a Lender (except in the case of a Default under
Section 9(a)) or the Borrower referring to this Agreement, describing such
Default or Event of Default and stating that such notice is a "notice of
default". In the event that the Agent receives such a notice, the Agent shall
give notice thereof to the Lenders. The Agent shall take such action with
respect to such Default or Event of Default as shall be reasonably directed by
the Majority Lenders; provided that unless and until the Agent shall have
received such directions, the Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Default or
Event of Default as it shall deem advisable in the best interests of the
Lenders.
10.6 Non-Reliance on the Agent and the Other Lenders. Each Lender expressly
acknowledges that neither the Agent nor any of its officers, directors,
employees, agents, attorneys-in-fact or affiliates has made any representations
or warranties to it and that no act by the Agent hereinafter taken, including
any review of the affairs of the Borrower, shall be deemed to constitute any
representation or warranty by the Agent to any Lender. Each Lender represents to
the Agent that it has, independently and without reliance upon the Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Borrower and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon the Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own credit analysis, appraisals and decisions in taking or not taking action
under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial
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and other condition and creditworthiness of the Borrower. Except for notices,
reports and other documents expressly required to be furnished to the Lenders by
the Agent hereunder, the Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or
creditworthiness of the Borrower which may come into the possession of the Agent
or any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates.
10.7 INDEMNIFICATION. THE LENDERS AGREE TO INDEMNIFY THE AGENT IN ITS
CAPACITY AS SUCH (TO THE EXTENT NOT REIMBURSED BY THE BORROWER AND WITHOUT
LIMITING THE OBLIGATION OF THE BORROWER TO DO SO), RATABLY ACCORDING TO THEIR
RESPECTIVE SPECIFIED PERCENTAGES IN EFFECT ON THE DATE ON WHICH INDEMNIFICATION
IS SOUGHT (OR, IF INDEMNIFICATION IS SOUGHT AFTER THE DATE UPON WHICH THE LOANS
SHALL HAVE BEEN PAID IN FULL, RATABLY IN ACCORDANCE WITH THEIR SPECIFIED
PERCENTAGES IMMEDIATELY PRIOR TO SUCH DATE), FROM AND AGAINST ANY AND ALL
LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND WHATSOEVER WHICH MAY AT ANY TIME
(INCLUDING, WITHOUT LIMITATION, AT ANY TIME FOLLOWING THE PAYMENT OF THE LOANS)
BE IMPOSED ON, INCURRED BY OR ASSERTED AGAINST THE AGENT IN ANY WAY RELATING TO
OR ARISING OUT OF, THE COMMITMENTS, THIS AGREEMENT, ANY OF THE OTHER LOAN
DOCUMENTS OR ANY DOCUMENTS CONTEMPLATED BY OR REFERRED TO HEREIN OR THEREIN OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY OR ANY ACTION TAKEN OR OMITTED
BY THE AGENT UNDER OR IN CONNECTION WITH ANY OF THE FOREGOING; PROVIDED THAT NO
LENDER SHALL BE LIABLE FOR THE PAYMENT OF ANY PORTION OF SUCH LIABILITIES,
OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS,
EXPENSES OR DISBURSEMENTS RESULTING FROM THE AGENT'S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT. THE AGREEMENTS IN THIS SECTION SHALL SURVIVE THE PAYMENT OF THE
LOANS AND ALL OTHER AMOUNTS PAYABLE HEREUNDER.
10.8 The Agent in Its Individual Capacity. The Agent and its affiliates may
make loans to, accept deposits from and generally engage in any kind of business
with the Borrower as though the Agent were not the Agent hereunder and under the
other Loan Documents. With respect to the Loans made by it, the Agent shall have
the same rights and powers under this Agreement and the other Loan Documents as
any Lender and may exercise the same as though it were not the Agent, and the
terms "Lender" and "Lenders" shall include the Agent in its individual capacity.
10.9 Successor Agent. (a) The Agent may resign as the Agent upon 30 days'
notice to the Lenders and the appointment of a successor Agent as hereinafter
provided. If the Agent
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shall resign as the Agent under this Agreement and the other Loan Documents,
then, unless an Event of Default shall have occurred and be continuing (in which
case, the Majority Lenders shall appoint a successor), the Borrower shall
appoint from among the Lenders a successor Agent for the Lenders, which
successor Agent shall be approved by the Majority Lenders (which approval shall
not be unreasonably withheld). If no successor Agent shall have been so
appointed by the Borrower (or in the case of an Event of Default, by the
Majority Lenders) and such successor Agent has not accepted such appointment
within 30 days after such resignation, then the resigning Agent may, on behalf
of the Lenders, appoint a successor Agent, which successor Agent hereunder shall
be either a Lender or, if none of the Lenders is willing to serve as successor
Agent, a major international bank having combined capital and surplus of at
least $500,000,000. Upon the acceptance of any appointment as the Agent
hereunder by a successor Agent, such successor Agent shall succeed to the
rights, powers and duties of the Agent, and the term "Agent" shall mean such
successor Agent effective upon such appointment and approval, and the former
Agent's rights, powers and duties as the Agent shall be terminated, without any
other or further act or deed on the part of such former Agent or any of the
parties to this Agreement or any holders of the Loans. After any retiring
Agent's resignation as the Agent, the provisions of this Section 10 shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was
the Agent under this Agreement and the other Loan Documents.
(b) In the event that the Agent shall have breached any of its material
obligations to the Lenders hereunder, the Majority Lenders may remove the Agent,
effective on the date specified by them, by written notice to the Agent and the
Borrower. Upon any such removal, the Borrower, provided that no Event of Default
shall have occurred and be continuing (in which case the Majority Lenders shall
make the appointment), shall have the right to appoint a successor Agent, which
successor Agent shall be approved by the Majority Lenders (which approval shall
not be unreasonably withheld). If no successor Agent shall have been so
appointed by the Borrower (or in the case of an Event of Default, by the
Majority Lenders) and such successor Agent has not accepted such appointment
within 30 days after notification to the Agent of its removal, then the retiring
Agent may, on behalf of the Lenders, appoint a successor Agent, which successor
Agent hereunder shall be either a Lender or, if none of the Lenders is willing
to serve as successor Agent, a major international bank having combined capital
and surplus of at least $500,000,000. Such successor Agent, provided that no
Event of Default shall have occurred and be continuing, shall be reasonably
satisfactory to the Borrower. Upon the acceptance of any appointment as the
Agent hereunder by a successor Agent, such successor Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its
duties and obligations under this Agreement. The Borrower and the Lenders shall
execute such documents as shall be necessary to effect such appointment. After
any retiring Agent's removal hereunder as the Agent, the provisions of this
Section 10.9 shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was the Agent under this Agreement and the other Loan
Documents. If at any time there shall not be a duly appointed and acting Agent,
the Borrower agrees to make each payment due hereunder and under the Notes
directly to the Lenders entitled thereto during such time.
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10.10 Other Agents. The Borrower and each Lender hereby covenant and agree
that the Documentation Agent shall not have any duties or responsibilities
hereunder, or any fiduciary relationship with the Borrower or any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or otherwise exist against the
Documentation Agent in its capacity as such.
SECTION 11. MISCELLANEOUS
11.1 Amendments and Waivers. Neither this Agreement nor any other Loan
Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this Section 11.1. The
Majority Lenders and each relevant Loan Party may, or, with the written consent
of the Majority Lenders, the Agent and each relevant Loan Party may, from time
to time, (a) enter into written amendments, supplements or modifications hereto
and to the other Loan Documents for the purpose of adding any provisions to this
Agreement or the other Loan Documents or changing in any manner the rights of
the Lenders or of the Loan Parties hereunder or thereunder or (b) waive, on such
terms and conditions as the Majority Lenders or the Agent, as the case may be,
may specify in such instrument, any of the requirements of this Agreement or the
other Loan Documents or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment, supplement or
modification shall (i) reduce the amount or extend the scheduled date of
maturity of any Loan or of any installment thereof, or reduce the stated rate of
any interest or fee payable hereunder or extend the scheduled date of any
payment thereof or increase the amount or extend the expiration date of any
Commitment of any Lender, or make any change in the method of application of any
payment of the Loans specified in Section 4.2 or Section 4.8, (ii) waive, extend
or reduce any mandatory Commitment reduction pursuant to Section 4.2, (iii)
amend, modify or waive any provision of, this Section 11.1 or reduce any
percentage specified in the definition of Majority Lenders, or consent to the
assignment or transfer by any Loan Party of any of its rights and obligations
under this Agreement and the other Loan Documents, (iv) release the Collateral,
except as expressly permitted in the Security Documents and except for any
Collateral which is permitted to be disposed of pursuant to Section 8.5, all of
which Collateral may be released by the Agent pursuant to such applicable
Security Document and pursuant to Section 8.5, (v) amend, modify or waive any
condition precedent to any extension of credit set forth in Section 6, in each
case of (i), (ii), (iii), (iv) and (v) above, without the written consent of all
of the Lenders, (vi) amend, modify or waive any provision of Section 10 without
the written consent of the then Agent or (vii) amend, modify or waive any
provision of Section 3 without the written consent of the Issuing Lender. Any
such waiver and any such amendment, supplement or modification shall apply
equally to each of the Lenders and shall be binding upon the Loan Parties, the
Lenders, the Agent and all future holders of the Notes. In the case of any
waiver, the Loan Parties, the Lenders and the Agent shall be restored to their
former position and rights hereunder and under the other Loan Documents, and any
Default or Event of Default waived shall be deemed to be cured and not
continuing; but no such waiver shall extend to any subsequent or other Default
or Event of Default, or impair any right consequent thereon.
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11.2 Notices. All notices, requests and demands to or upon the respective
parties hereto to be effective shall be in writing (including by facsimile
transmission) and, unless otherwise expressly provided herein, shall be deemed
to have been duly given or made (a) in the case of delivery by hand, when
delivered, (b) in the case of delivery by mail, three Business Days after being
deposited in the mails, postage prepaid, or (c) in the case of delivery by
facsimile transmission, when sent and receipt has been confirmed, addressed as
follows in the case of the Borrower, the Subsidiaries and the Agent, and as set
forth in Schedule 1.1 (or, with respect to any Lender that is an Assignee, in
the applicable Assignment and Acceptance) in the case of the other parties
hereto, or to such other address as may be hereafter notified by the respective
parties hereto:
The Borrower: Radio One, Inc.
0000 Xxxxxxxx Xxxxxx Xxxxxxx, 0xx Xxxxx
Xxxxxx, Xxxxxxxx 00000
Attention: Xxxxx X. Xxxxxxx, Chief Financial
Officer
Fax: (000) 000-0000
with copies to:
Xxxxxx X. Xxxxxxx, President
Fax: (000) 000-0000
and
Xxxxx Xxxxxx, General Counsel
Fax: (000) 000-0000
The Agent/Issuing Lender: Credit Suisse First Boston
Eleven Madison Avenue
New York, New York 10010
Attention: Agency Administration
Fax: (000) 000-0000
provided that any notice, request or demand to or upon the Agent or the Lenders
pursuant to Sections 2 or 3 shall not be effective until received.
11.3 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Loan Documents shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.
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11.4 Survival of Representations and Warranties. All representations and
warranties made hereunder, in the other Loan Documents and in any document,
certificate or statement delivered pursuant hereto or in connection herewith
shall survive the execution and delivery of this Agreement and the making of the
Loans hereunder.
11.5 Payment of Expenses and Taxes. The Borrower agrees (a) to pay or
reimburse the Agent for all its reasonable out-of-pocket costs and expenses
incurred in connection with the development, preparation and execution of, and
any amendment, supplement or modification to, this Agreement and the other Loan
Documents and any other documents prepared in connection herewith or therewith,
and the consummation and administration of the transactions contemplated hereby
and thereby, including, without limitation, the reasonable fees and
disbursements of counsel to the Agent, (b) to pay or reimburse each Lender and
the Agent for all its costs and expenses reasonably incurred in connection with
the enforcement or preservation of any rights under this Agreement, the other
Loan Documents and any such other documents, including, without limitation, the
reasonable fees and disbursements of counsel to each Lender and of counsel to
the Agent, (c) without duplication of amounts payable pursuant to Sections 4.9
and 4.10, TO PAY, INDEMNIFY, AND HOLD EACH LENDER AND THE AGENT HARMLESS FROM,
ANY AND ALL RECORDING AND FILING FEES AND ANY AND ALL LIABILITIES WITH RESPECT
TO, OR RESULTING FROM ANY DELAY IN PAYING, STAMP, EXCISE AND OTHER TAXES, IF
ANY, WHICH MAY BE PAYABLE OR DETERMINED TO BE PAYABLE IN CONNECTION WITH THE
EXECUTION AND DELIVERY OF, OR CONSUMMATION OR ADMINISTRATION OF ANY OF THE
TRANSACTIONS CONTEMPLATED BY, OR ANY AMENDMENT, SUPPLEMENT OR MODIFICATION OF,
OR ANY WAIVER OR CONSENT UNDER OR IN RESPECT OF, THIS AGREEMENT, THE OTHER LOAN
DOCUMENTS AND ANY SUCH OTHER DOCUMENTS, AND (D) WITHOUT DUPLICATION OF AMOUNTS
PAYABLE PURSUANT TO SECTIONS 4.9 AND 4.10, TO PAY, INDEMNIFY, AND HOLD EACH
LENDER, EACH ISSUING LENDER AND THE AGENT, AND THEIR RESPECTIVE OFFICERS,
DIRECTORS, EMPLOYEES, AFFILIATES, ADVISORS, AGENTS AND CONTROLLING PERSONS
(EACH, AN "INDEMNITEE"), HARMLESS FROM AND AGAINST ANY AND ALL OTHER
LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS,
COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER WITH RESPECT
TO THE EXECUTION, DELIVERY, ENFORCEMENT, PERFORMANCE AND ADMINISTRATION OF THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS AND ANY SUCH OTHER DOCUMENTS OR THE USE OF
THE PROCEEDS OF THE LOANS (ALL THE FOREGOING IN THIS CLAUSE (D), COLLECTIVELY,
THE "INDEMNIFIED LIABILITIES"), PROVIDED, THAT IT IS THE INTENTION OF THE
BORROWER TO INDEMNIFY THE INDEMNIFIED PARTIES HEREUNDER AGAINST THEIR OWN
NEGLIGENCE, AND FURTHER PROVIDED THE BORROWER SHALL HAVE NO OBLIGATION HEREUNDER
TO ANY INDEMNITEE WITH RESPECT TO INDEMNIFIED LIABILITIES ARISING FROM THE GROSS
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NEGLIGENCE OR WILLFUL MISCONDUCT OF OR BREACH OF THIS AGREEMENT BY SUCH
INDEMNITEE. THE AGREEMENTS IN THIS SECTION SHALL SURVIVE REPAYMENT OF THE LOANS
AND ALL OTHER AMOUNTS PAYABLE HEREUNDER.
11.6 Successors and Assigns; Participations and Assignments. (a) This
Agreement shall be binding upon and inure to the benefit of the Borrower, the
Lenders, the Agent and their respective successors and assigns, except that the
Borrower may not assign or transfer any of its rights or obligations under this
Agreement without the prior written consent of each Lender.
(b) Any Lender may, in accordance with applicable law, at any time sell to
one or more banks or other entities ("Participants") participating interests in
any Loan or L/C Obligation owing to such Lender, any Commitment of such Lender
or any other interest of such Lender hereunder and under the other Loan
Documents. In the event of any such sale by a Lender of a participating interest
to a Participant, such Lender's obligations under this Agreement to the other
parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Loan for all purposes under this Agreement and the other Loan
Documents, and the Borrower and the Agent shall continue to deal solely and
directly with such Lender in connection with such Lender's rights and
obligations under this Agreement and the other Loan Documents. In no event shall
any Participant under any such participation have any right to approve any
amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment,
waiver or consent would reduce the principal of, or interest on, the Loans or
any fees payable hereunder, or postpone the date of the final scheduled maturity
of the Loans, in each case to the extent subject to such participation. The
Borrower agrees that if amounts outstanding under this Agreement are due or
unpaid, or shall have been declared or shall have become due and payable upon
the occurrence of an Event of Default, each Participant shall, to the maximum
extent permitted by applicable law, be deemed to have the right of setoff in
respect of its participating interest in amounts owing under this Agreement to
the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement, provided that, in purchasing
such participating interest, such Participant shall be deemed to have agreed to
share with the Lenders the proceeds thereof as provided in Section 11.7(a) as
fully as if it were a Lender hereunder. The Borrower also agrees that each
Participant shall be entitled to the benefits of Sections 4.9, 4.10 and 4.11
with respect to its participation in the Commitments and the Loans outstanding
from time to time as if it were a Lender; provided that, in the case of Section
4.10, such Participant shall have complied with the requirements of said Section
and provided, further, that no Participant shall be entitled to receive any
greater amount pursuant to any such Section than the transferor Lender would
have been entitled to receive in respect of the amount of the participation
transferred by such transferor Lender to such Participant had no such transfer
occurred.
(c) Any Lender may, in accordance with applicable law, at any time and from
time to time assign to any Person (an "Assignee") all or any part of its rights
and obligations under this Agreement and the other Loan Documents pursuant to an
Assignment and Acceptance,
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substantially in the form of Exhibit A, executed by such Assignee and such
assigning Lender and delivered to the Agent for its acceptance and recording in
the Register (with a copy to the Borrower) and upon payment to the Agent of a
processing fee in the amount of $3,500 by the applicable Lender and/or Assignee;
provided that, (i) no such assignment shall be in an amount less than $5,000,000
or a whole multiple of $100,000 in excess thereof or, if less than $5,000,000,
the entire amount of such Lender's applicable Commitment; and (ii) no such
assignment shall be made without the prior consent of the Agent and the Borrower
(which consent shall not be unreasonably withheld or delayed) unless such
assignment is to another Lender or an Affiliate of a Lender, in which event no
such consent shall be required. Upon such execution, delivery, acceptance and
recording, from and after the effective date determined pursuant to such
Assignment and Acceptance, (x) the Assignee thereunder shall be a party hereto
and, to the extent provided in such Assignment and Acceptance, have the rights
and obligations of a Lender hereunder with a Commitment as set forth therein,
and (y) the assigning Lender thereunder shall, to the extent provided in such
Assignment and Acceptance, be released from its obligations under this
Agreement.
(d) Any Non-U.S. Lender that could become completely exempt from
withholding of any tax, assessment or other charge or levy imposed by or on
behalf of the United States or any taxing authority thereof ("U.S. Taxes") in
respect of payment of any Obligations due to such Non-U.S. Lender under this
Agreement if the Obligations were in registered form for U.S. federal income tax
purposes may request the Borrower (through the Agent), and the Borrower agrees
thereupon, to exchange any promissory note(s) evidencing such Obligations for
promissory note(s) registered as provided in paragraph (f) below and
substantially in the form of Exhibit P (an "Alternative Note"). Alternative
Notes may not be exchanged for promissory notes that are not Alternative Notes.
(e) Each Non-U.S. Lender that could become completely exempt from
withholding of U.S. Taxes in respect of payment of any Obligations due to such
Non-U.S. Lender if the Obligations were in registered form for U.S. Federal
income tax purposes and that holds Alternative Note(s) (an "Alternative
Noteholder") (or, if such Alternative Noteholder is not the beneficial owner
thereof, such beneficial owner) shall deliver to the Borrower prior to or at the
time such Non-U.S. Lender becomes an Alternative Noteholder a Form W-8
(Certificate of Foreign Status of the U.S. Department of Treasury) (or any
successor or related form adopted by the U.S. taxing authorities), together with
an annual certificate stating that (i) such Alternative Noteholder or beneficial
owner, as the case may be, is not a "bank" within the meaning of Section 881(c)
of the Code, is not a 10-percent shareholder (within the meaning of Section
871(h)(3)(B) of the Code) of the Borrower and is not a controlled foreign
corporation related to the Company (within the meaning of Section 864(d)(4) of
the Code) and (ii) such Alternative Noteholder or beneficial owner, as the case
may be, shall promptly notify the Borrower if at any time such Alternative
Noteholder or beneficial owner, as the case may be, determines that it is no
longer in a position to provide such certification to the Borrower (or any other
form of certification adopted by the U.S. taxing authorities for such purposes).
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(f) An Alternative Note and the Obligation(s) evidenced thereby may be
assigned or otherwise transferred in whole or in part only by registration of
such assignment or transfer of such Alternative Note and the Obligation(s)
evidenced thereby on the Register (and each Alternative Note shall expressly so
provide). Any assignment or transfer of all or part of such Obligation(s) and
the Alternative Note(s) evidencing the same shall be registered on the Register
only upon surrender for registration of assignment or transfer of the
Alternative Note(s) evidencing such Obligation(s), duly endorsed by (or
accompanied by a written instrument of assignment or transfer duly executed by)
the Alternative Noteholder thereof, and thereupon one or more new Alternative
Note(s) in the same aggregate principal amount shall be issued to the designated
Assignee(s). No assignment of an Alternative Note and the Obligation(s)
evidenced thereby shall be effective unless it has been recorded in the Register
as provided in this Section 11.6(f).
(g) The Agent, on behalf of the Borrower, shall maintain at the address of
the Agent referred to in Section 11.2 a copy of each Assignment and Acceptance
delivered to it and a register (the "Register") for the recordation of the names
and addresses of the Lenders (including Alternative Noteholders) and the
Commitments of, and principal amounts of the Loans owing to, each Lender from
time to time. The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrower, the Agent and the Lenders may (and, in the
case of any Loan or other obligation hereunder not evidenced by a Note, shall)
treat each Person whose name is recorded in the Register as the owner of a Loan
or other obligation hereunder as the owner thereof for all purposes of this
Agreement and the other Loan Documents, notwithstanding any notice to the
contrary. Any assignment of any Loan or other obligation hereunder not evidenced
by a Note shall be effective only upon appropriate entries with respect thereto
being made in the Register. The Register shall be available for inspection by
the Borrower or any Lender at any reasonable time and from time to time upon
reasonable prior notice.
(h) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an Assignee and the Borrower, if applicable, together with
payment to the Agent of a registration and processing fee of $3,500 from the
applicable Lender and/or Assignee, the Agent shall (i) promptly accept such
Assignment and Acceptance and (ii) on the effective date determined pursuant
thereto record the information contained therein in the Register and give notice
of such acceptance and recordation to the Lenders and the Borrower.
(i) Subject to Section 11.16, the Borrower authorizes each Lender to
disclose to any Participant or Assignee (each, a "Transferee") and any
prospective Transferee, subject to the Transferee agreeing to be bound by the
provisions of Section 11.16, any and all financial information in such Lender's
possession concerning the Borrower and the Subsidiaries which has been delivered
to such Lender by or on behalf of the Borrower pursuant to this Agreement or
which has been delivered to such Lender by or on behalf of the Borrower in
connection with such Lender's credit evaluation of the Borrower and its
Subsidiaries prior to becoming a party to this Agreement.
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(j) For avoidance of doubt, the parties to this Agreement acknowledge that
the provisions of this Section concerning assignments of Loans and Notes relate
only to absolute assignments and that such provisions do not prohibit
assignments creating security interests, including, without limitation, any
pledge or assignment by a Lender of any Loan or Note to any Federal Reserve Bank
in accordance with applicable law.
11.7 Adjustments; Set-off. (a) If any Lender (a "benefitted Lender") shall
at any time receive any payment of all or part of its Loans, or interest
thereon, or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to events or proceedings of the nature
referred to in Section 9(f), or otherwise), in a greater proportion than any
such payment to or collateral received by any other Lender, if any, in respect
of such other Lender's Loans, or interest thereon, such benefitted Lender shall
purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender's Loan, or shall provide such other Lenders
with the benefits of any such collateral, or the proceeds thereof, as shall be
necessary to cause such benefitted Lender to share the excess payment or
benefits of such collateral or proceeds ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest.
(b) In addition to any rights and remedies of the Lenders provided by law,
each Lender shall have the right, without prior notice to the Borrower, any such
notice being expressly waived by the Borrower to the extent permitted by
applicable law, upon any amount becoming due and payable by the Borrower
hereunder (whether at the stated maturity, by acceleration or otherwise) to
set-off and appropriate and apply against such amount, to the extent permitted
by applicable law, any and all deposits (general or special, time or demand,
provisional or final), in any currency, and any other credits, indebtedness or
claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Lender or
any branch or agency thereof to or for the credit or the account of the
Borrower. Each Lender agrees promptly to notify the Borrower and the Agent after
any such set-off and application made by such Lender, provided that, to the
extent permitted by applicable law, the failure to give such notice shall not
affect the validity of such set-off and application.
11.8 Counterparts; When Effective. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts
(including by facsimile transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of the
copies of this Agreement signed by all the parties shall be lodged with the
Borrower and the Agent. This Agreement shall become effective when the Agent has
received original counterparts hereof executed by the Borrower, the Agent and
each Lender named on Schedule 1.1 on the date of the initial extension of credit
made under this Agreement (such date herein referred to as the "Effective
Date").
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11.9 Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.
11.10 Integration. This Agreement and the other Loan Documents represent
the agreement of the Borrower, the Agent and the Lenders with respect to the
subject matter hereof, and there are no promises, undertakings, representations
or warranties by the Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Loan Documents.
11.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
11.12 Submission To Jurisdiction; Waivers. The Borrower hereby irrevocably
and unconditionally:
(a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which
it is a party, or for recognition and enforcement of any judgement in
respect thereof, to the non-exclusive general jurisdiction of the Courts of
the State of New York, the courts of the United States of America for the
Southern District of New York, and appellate courts from any thereof;
(b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the
venue of any such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) designates and appoints Corporation Service Company, with offices
at 000 Xxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, as agent to receive for and
on behalf of the Borrower service of process in New York. In the event that
C T Corporation System resigns or ceases to serve as the Borrower's agent
for service of process hereunder, the Borrower agrees forthwith (i) to
designate another agent for service of process in the State of New York and
(ii) to give prompt written notice to the Agent of the name and address of
such agent. In addition, the Borrower agrees that service of process in any
such action or proceeding may also be effected by mailing a copy thereof by
registered or certified mail (or any substantially similar form of mail),
postage prepaid, to it at its address set forth in Section 11.2 or at such
other address of which the Agent shall have been notified pursuant thereto;
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(d) agrees that nothing herein shall affect the right to effect
service of process in any other manner permitted by law or shall limit the
right to xxx in any other jurisdiction; and
(e) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to
in this Section 11.12 any special, exemplary, punitive or consequential
damages.
11.13 Acknowledgments. The Borrower and each Subsidiary hereby acknowledges
that:
(a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents;
(b) neither the Agent nor any Lender has any fiduciary relationship
with or duty to the Borrower or any Subsidiary arising out of or in
connection with this Agreement or any of the other Loan Documents, and the
relationship between the Agent and the Lenders, on one hand, and the
Borrower or any Subsidiary, on the other hand, in connection herewith or
therewith is solely that of debtor and creditor; and
(c) no joint venture is created hereby or by the other Loan Documents
or otherwise exists by virtue of the transactions contemplated hereby among
the Lenders or among the Borrower, the Subsidiaries and the Lenders.
11.14 WAIVERS OF JURY TRIAL. THE LENDERS, THE BORROWER AND ITS
SUBSIDIARIES, FOR THEMSELVES AND THEIR RESPECTIVE SUCCESSORS AND ASSIGNS, HEREBY
WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW, THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, OR ANY DEALINGS WITH LENDERS
RELATING TO THE SUBJECT MATTER OF THE LOAN TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY AND THE RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN
ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING,
WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL
OTHER COMMON LAW AND STATUTORY CLAIMS. THE BORROWER AND ITS SUBSIDIARIES
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO LENDERS' AGREEMENT TO
ENTER INTO A BUSINESS RELATIONSHIP, THAT LENDERS HAVE ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT LENDERS WILL CONTINUE TO RELY
ON THIS WAIVER IN RELATED FUTURE DEALINGS. THE BORROWER AND ITS SUBSIDIARIES
FURTHER WARRANT AND REPRESENT THAT THEY HAVE KNOWINGLY AND VOLUNTARILY WAIVED
THEIR JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER
IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING,
AND THIS
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WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, MODIFICATIONS, RENEWALS,
EXTENSIONS, RESTATEMENTS, REARRANGEMENTS, SUPPLEMENTS OR SUBSTITUTIONS TO THIS
AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOANS OR THE NOTES. IN THE EVENT OF LITIGATION, THIS AGREEMENT
MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
11.15 Maximum Interest Rate. Regardless of any provision contained in any
of the Loan Documents, Lenders shall never be entitled to contract for, charge,
take, reserve, receive, or apply, as interest on the Obligations, or any part
thereof, any amount in excess of the Highest Lawful Rate, and, in the event any
Lender ever contracts for, charges, takes, reserves, receives, or applies as
interest any such excess, it shall be deemed a partial prepayment of principal
and treated hereunder as such and any remaining excess shall be refunded to the
Borrower. In determining whether or not the interest paid or payable, under any
specific contingency, exceeds the Highest Lawful Rate, the Borrower, its
Subsidiaries, and Lenders shall, to the maximum extent permitted under
applicable Law, (a) treat all Loans as but a single extension of credit (and
Lenders, the Borrower and the Borrower's Subsidiaries agree that such is the
case and that provision herein for multiple Loans and for one or more Notes is
for convenience only), (b) characterize any nonprincipal payment as an expense,
fee, or premium rather than as interest, (c) exclude voluntary prepayments and
the effects thereof, and (d) "spread" the total amount of interest throughout
the entire contemplated term of the Obligation; provided that, if the Obligation
is paid and performed in full prior to the end of the full contemplated term
thereof, and if the interest received for the actual period of existence thereof
exceeds the Highest Lawful Rate, Lenders shall refund such excess, and, in such
event, Lenders shall not be subject to any penalties provided by any laws for
contracting for, charging, taking, reserving, or receiving interest in excess of
the Highest Lawful Rate.
11.16 Confidentiality. Each Lender agrees to keep confidential all
non-public information provided to it by or on behalf of the Borrower or any of
the Subsidiaries pursuant to this Agreement or any other Loan Document; provided
that nothing herein shall prevent any Lender from disclosing any such
information (i) to the Agent or any other Lender, (ii) to any Assignee or
Participant or prospective transferee, if such transferee has agreed in writing
to be bound by this Section 11.16, (iii) to its employees, directors, agents,
attorneys, accountants and other professional advisors, (iv) as may be required
or appropriate in any report, statement or testimony submitted to the NAIC or
any Governmental Authority having or claiming jurisdiction over such Lender
(including the Board and the Federal Deposit Insurance Corporation or any
similar organization, whether in the United States or elsewhere, and their
respective successors), (v) as may be required or appropriate in response to any
summons or subpoena or in connection with any litigation, (vi) in response to
any order of any court or other Governmental Authority or as may otherwise be
required pursuant to any Requirement of Law, (vii) which has been publicly
disclosed other than in breach of this Agreement, or (viii) in connection with
the exercise of any remedy hereunder.
108
11.17 Agreement of Lenders. The Agent and the Lenders agree to comply with
their respective covenants, if any, set forth in the Security Documents.
11.18 FINAL AGREEMENT. THIS WRITTEN AGREEMENT, THE NOTES AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN OR ORAL AGREEMENTS
BETWEEN THE PARTIES.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGES FOLLOW.]
109
EXECUTED as of the day and year first mentioned.
RADIO ONE, INC., the Borrower
By:
--------------------------------
Xxxxxx X. Xxxxxxx
President
CREDIT SUISSE FIRST BOSTON,
as the Agent
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
CREDIT SUISSE FIRST BOSTON,
as a Lender
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
NATIONSBANK, N.A.,
as a Lender
By:
--------------------------------
Name:
---------------------------
Title:
--------------------------
Schedule 1.1A
Commitments and Addresses of Lenders
FUNDING OFFICE OF AGENT:
------------------------
Credit Suisse First Boston
Eleven Madison Avenue
New York, New York 10010
Attn: Xxxxx Xxxxx
Fax: (000) 000-0000
Phone: (000) 000-0000
ABA # 000-000-000
Account # 00000000
Attn: Xxxxx Xxxxx
Ref: Radio One
OFFICE OF ISSUING LENDER:
-------------------------
Credit Suisse First Boston
Eleven Madison Avenue
New York, New York 10010
Attn: Xxxxx Xxxxx
Fax: (000) 000-0000
NAME AND ADDRESS OF LENDERS:
----------------------------
--------------------------------------------------- ------------- ------------
SPECIFIED
NAME AND ADDRESS OF LENDER COMMITMENT PERCENTAGE
--------------------------------------------------- ------------- ------------
Credit Suisse First Boston $17,500,000 53.8462%
Eleven Xxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. Xxxxx
Fax: (000) 000-0000
--------------------------------------------------- ------------- ------------
NationsBank, N.A. $15,000,000 46.1538%
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxxxxx, Xxxxx 00000
Attn: Xxxxxxx X. Xxxxx
Fax: (000) 000-0000
--------------------------------------------------- ------------- ------------
Schedule 1.1B
Expense Add Backs to EBITDA
With respect to the financial calculations based on the four fiscal quarter
period ending March 31, 1998, to be delivered by the Borrower hereunder, the
Borrower shall be entitled to a one time expense add back to EBITDA in
connection with the Xxxx Acquisition for such four fiscal quarter peiord ending
March 31, 1998 in an amount equal to $680,112. It is understood by the Borrower
that any further add backs to EBITDA for any other four fiscal quarter period
shall be negotiated with the Lenders.
Schedule 5.1(c)
Pro Forma Financial Information, Budgets and Projections
Schedule 5.4
Required Consents and Approvals
Schedule 5.14(a)
List of Restricted Subsidiaries and Owners of Equity Interests
Schedule 5.14(b)
List of Shareholder and Voting Agreements, Warrants,
Restrictions on Transfer of Equity Interests
Schedule 5.22(a)
Prior Trade Names
Schedule 5.22(b)
Current Trade Names
Schedule 5.23
Chief Executive Office; Chief Place of Business
Schedule 5.24(a)
List of Real Property Owned and Leased
Schedule 5.24(b)
List of Mortgaged Properties
Schedule 5.25
Stations Owned
Schedule 5.26
Necessary Authorizations
Schedule 5.27
Patents and Trademarks
Schedule 8.2
Indebtedness
Schedule 8.9
Existing Affiliate Transactions
