Exhibit 4.10
SECOND AMENDED AND RESTATED
LOAN AGREEMENT
AMONG
EVERGREEN MEDIA CORPORATION OF LOS ANGELES; THE FINANCIAL INSTITUTIONS
WHOSE NAMES APPEAR AS LENDERS ON THE SIGNATURE PAGES HEREOF; TORONTO DOMINION
(TEXAS), INC., BANKERS TRUST COMPANY, THE BANK OF NEW YORK, NATIONSBANK OF
TEXAS, N.A. AND UNION BANK OF CALIFORNIA, AS MANAGING AGENTS; TORONTO DOMINION
SECURITIES (USA), INC., AS ARRANGING AGENT; AND TORONTO DOMINION (TEXAS), INC.,
AS ADMINISTRATIVE AGENT FOR THE LENDERS
RECITALS
WHEREAS, Evergreen Media Corporation of Los Angeles, a Delaware corporation
(the "Borrower"), Toronto Dominion (Texas), Inc. (the "Administrative Agent"),
the lenders named therein and the other agents named therein are party to a
certain Amended and Restated Loan Agreement dated as of January 17, 1996 (as
amended, the "Prior Loan Agreement");
WHEREAS, the Borrower has requested, and the Administrative Agent and the
Lenders (consisting of most of the lenders under the Prior Loan Agreement, plus
some additional lenders) have agreed, to amend and restate the Prior Loan
Agreement in its entirety, to provide additional financing and to permit the
refinancing of certain bridge financing, all as more fully set forth herein;
WHEREAS, the Borrower and all other parties hereto acknowledge and agree
that (i) the Obligations (as defined herein) represent, among other things, the
amendment, restatement, renewal, extension, consolidation and modification of
the Obligations (as defined in the Prior Loan Agreement) arising in connection
with the Prior Loan Agreement and the other Loan Documents (as defined in the
Prior Loan Agreement) executed in connection therewith; (ii) the parties hereto
intend that the Prior Loan Agreement and the other Loan Documents (as defined in
the Prior Loan Agreement) executed in connection therewith and the collateral
pledged thereunder (to the extent not expressly released hereunder) shall
secure, without interruption or impairment of any kind, all existing
Indebtedness under the Prior Loan Agreement and the other Loan Documents (as
defined in the Prior Loan Agreement) executed in connection therewith as so
amended, restated, renewed, extended, consolidated and modified hereunder,
together with all other obligations hereunder; (iii) all Liens (to the extent
not expressly released hereunder) evidenced by the Prior Loan Agreement and the
other Loan Documents (as defined in the Prior Loan Agreement) executed in
connection therewith are hereby ratified, confirmed and
continued; and (iv) the Loan Documents (as defined herein) are intended to
restate, renew, extend, consolidate, amend and modify the Prior Loan Agreement
and the other Loan Documents (as defined in the Prior Loan Agreement) executed
in connection therewith; and
WHEREAS, the parties hereto intend that (i) the provisions of the Prior
Loan Agreement and the other Loan Documents (as defined in the Prior Loan
Agreement) executed in connection therewith, to the extent restated, renewed,
extended, consolidated, amended and modified hereby, be hereby superseded and
replaced by the provisions hereof and of the Loan Documents (as defined herein);
(ii) the Notes (as hereinafter defined) amend, renew, extend, modify, replace,
be substituted for and supersede in their entirety, but do not extinguish, the
Indebtedness arising under, the promissory notes issued pursuant to the Prior
Loan Agreement; and (iii) entering into, and performing their respective
obligations under, this transaction not constitute a novation;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each of the parties hereto, the
parties hereby amend and restate the Prior Loan Agreement as follows as of the
25th day of April, 1997:
ARTICLE 1
Definitions
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For the purposes of this Agreement:
"Acquisition" shall mean, with respect to the Borrower and its Subsidiaries
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(unless otherwise indicated) whether by means of a purchase, merger,
consolidation, assignment or other transaction, and whether in one transaction
or a series of transactions, (a) any acquisition of any other Person, which
Person shall then become consolidated with the Borrower (or other acquiring
Person) in accordance with GAAP, or (b) any acquisition of all or any
substantial part of the assets of any other Person, pertaining to the purchase
of assets or ownership interests primarily involved in the business of operating
broadcast radio stations.
"Additional Facility Indebtedness" shall mean additional Indebtedness for
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Money Borrowed (as to which no commitment has been issued by any Lender as of
the Agreement Date) in a principal amount not to exceed $250,000,000 incurred by
the
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Borrower under Section 2.1 hereof and otherwise in accordance with this
Agreement from one or more of the Lenders or any other financial institution
acceptable to the Administrative Agent who agree to extend such credit.
"Additional Revolving Loan Commitment" shall mean the aggregate principal
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amount of not less than $300,000,000 being added to the Revolving Loan
Commitment on the Merger Date by the CRBC Lenders.
"Adjustment Period" shall mean that period commencing on the Adjustment
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Trigger Date and continuing through the earlier of (a) June 30, 1998, (b) the
initial deadline established by the FCC for the sale or other disposition of the
last of the Required Divestitures or (c) the Merger Date, or such earlier date
as of which any Subordinated Indebtedness has restrictions on leverage which are
effectively more restrictive than the Total Leverage Ratio covenant otherwise
applicable after the Adjustment Trigger Date.
"Adjustment Trigger Date" shall mean any date on or before September 30,
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1997, on which each of the following shall have occurred: (a) the Viacom
Purchase shall have been consummated, (b) the Borrower or the Parent Company
shall have issued (after the Agreement Date) at least $100,000,000 in Preferred
Stock or other Capital Stock and $200,000,000 in Subordinated Indebtedness (the
"Viacom Subordinated Indebtedness") in connection with the Viacom Purchase, and
if issued by the Parent Company, the Net Proceeds thereof shall have been
contributed to the Borrower, and (c) no Default or Event of Default shall then
exist.
"Administrative Agent" shall mean Toronto Dominion (Texas), Inc., acting in
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its capacity as administrative agent for itself and for the ratable benefit of
the Lenders, or any successor Administrative Agent.
"Administrative Agent's Office" shall mean the office of the Administrative
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Agent located at Toronto Dominion (Texas), Inc., 000 Xxxxxx, Xxxxx 0000,
Xxxxxxx, Xxxxx 00000, or such other office as may be designated pursuant to the
provisions of Section 11.1 of this Agreement.
"Advance" shall mean amounts advanced by the Lenders to the Borrower
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pursuant to Article 2 hereof on the occasion of any borrowing.
"Affiliate" shall mean any Person directly or indirectly controlling,
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controlled by, or under common control with, the Borrower. For purposes of this
definition, "control" when used
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with respect to any Person includes, without limitation, the direct or indirect
beneficial ownership of more than ten percent (10%) of the voting securities or
voting equity of such Person or the power to direct or cause the direction of
the management and policies of such Person whether by contract or otherwise.
"Aggregate Credit Obligations" shall mean, as of any particular time, the
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sum of (a) the aggregate principal amount of all Advances under the Revolving
Loan Commitment then outstanding, plus (b) the aggregate amount of all Letter of
Credit Obligations then outstanding.
"Agreement" shall mean this Second Amended and Restated Loan Agreement.
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"Agreement Date" shall mean April 25, 1997.
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"Applicable Law" shall mean, in respect of any Person, all provisions of
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constitutions, statutes, rules, regulations and orders of governmental bodies or
regulatory agencies applicable to such Person, and the Licenses held by such
Person, including without limiting the foregoing, the Communications Act and
Title 17 of the United States Code, all Environmental Laws, and all orders and
decrees of all courts and arbitrators in proceedings or actions to which the
Person in question is a party or by which it is bound.
"Applicable Margin" shall mean the interest rate margin applicable to
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Advances hereunder as determined in accordance with Section 2.3(f) hereof.
"Arranging Agent" shall mean Toronto Dominion Securities, Inc.
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"Assignment of Partnership Interests" shall mean that certain Amended and
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Restated Assignment of Partnership Interests of even date, substantially in the
form of Exhibit A attached hereto.
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"Authorized Signatory" shall mean such senior personnel of the Borrower as
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may be duly authorized and designated in writing by the Borrower to execute
documents, agreements and instruments on behalf of the Borrower.
"Available Letter of Credit Amount" shall mean, as of any particular time,
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an amount equal to the lesser of (a) $175,000,000, and (b) the Available
Revolving Loan Commitment.
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"Available Revolving Loan Commitment" shall mean, as of any particular
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time, (a) the amount of the Revolving Loan Commitment minus (b) the Aggregate
Credit Obligations then outstanding.
"Binding Sale Agreement" shall mean any sale agreement entered into by the
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Borrower or a Subsidiary of the Borrower, as seller, and any other Person (other
than an Affiliate), as buyer, which provides for the sale by the Borrower (or
such Subsidiary) to such Person of any Radio Properties, which is binding and
enforceable on the Borrower (or such Subsidiary) and such other Person, and
which, in the reasonable determination of the Administrative Agent, does not
contain any financing contingency or any non-market condition precedent to the
consummation of the sale contemplated thereby.
"Borrower" shall mean Evergreen Media Corporation of Los Angeles, a
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Delaware corporation.
"Borrower's Pledge Agreement" shall mean that certain Second Amended and
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Restated Borrower's Pledge Agreement of even date, substantially in the form of
Exhibit B attached hereto.
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"Broadcast Cash Flow" shall mean, unless otherwise indicated, for the
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Borrower and its Subsidiaries on a consolidated basis in respect of any period
(whether or not a fiscal or a calendar period), Net Revenues (other than gains
or losses from the sale of assets) less the sum of each of the following for
such period: (a) operating expenses (but not including extraordinary losses,
fees incurred in connection with the closing of this Agreement and the other
Loan Documents, prepayment fees payable in respect of the prepayment on the
Agreement Date of the Senior Notes, depreciation, amortization, and all other
non-cash expenses), and including operating expenses in respect of Local
Marketing Agreements associated with any LMA (Existing Station) or LMA (New
Station), and (b) extraordinary income (to the extent included in Net Revenues).
Broadcast Cash Flow shall be adjusted to give effect to Acquisitions, asset
swaps and divestitures permitted hereunder occurring (i) during or subsequent to
the period for which Broadcast Cash Flow is being determined, and (ii) on or
prior to the date of the event for which the calculation of Broadcast Cash Flow
is made, as if such Acquisitions, asset swaps and divestitures had occurred on
the first day of such period. Additionally, during the Adjustment Period,
Broadcast Cash Flow shall be adjusted to exclude the Net Revenues, operating
expenses and extraordinary income of any Required Divestiture subject to a
Binding Sale Agreement for the period being measured.
"Business Day" shall mean a day on which banks and foreign exchange markets
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are open for the transaction of business
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required for this Agreement in New York and Houston and, in respect of
Eurodollar Advances, London.
"Capital Expenditures" shall mean, in respect of any Person, expenditures
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for the purchase of assets of long-term use which are required to be capitalized
in accordance with GAAP other than (a) real estate, (b) Capitalized Lease
Obligations, and (c) assets of long-term use which are required to be
capitalized in accordance with GAAP and purchased as part of an Acquisition.
"Capitalized Lease Obligation" shall mean that portion of any obligation of
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a Person as lessee under a lease which at the time would be required to be
capitalized on the balance sheet of such lessee in accordance with GAAP.
"Capital Stock" shall mean, as applied to any Person, any capital stock
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(including common stock and preferred stock) of such Person, regardless of class
or designation, and all warrants, options, purchase rights, conversion or
exchange rights, voting rights, calls or claims of any character with respect
thereto.
"Cash Interest Expense" shall mean, unless otherwise indicated, for the
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Borrower and its Subsidiaries on a consolidated basis in respect of any period,
the sum for such period (without double-counting) of (a) any cash dividend on
account of any Preferred Stock of the Borrower, or any other Restricted Payments
made to the Parent Company to permit it to pay any interest on its Subordinated
Indebtedness or cash dividends on its Preferred Stock, and (b) the amount of net
cash interest expense that has been incurred by the Borrower and its
Subsidiaries. Cash Interest Expense shall be adjusted to give effect to any
Acquisition or divestiture permitted hereunder, or any other transaction
generating Net Proceeds, occurring (i) during or subsequent to the period for
which Cash Interest Expense is being determined, and (ii) on or prior to the
date of the event for which the calculation of Cash Interest Expense is made, by
including in (or excluding from) the amount of Cash Interest Expense any net
cash interest expense that would have been incurred (or net cash interest
savings) by the Borrower and its Subsidiaries on a consolidated basis had such
Acquisition or divestiture or other transaction (and any incurrence or repayment
or prepayment of Indebtedness for Money Borrowed associated therewith) occurred
on the first day of the period for which Cash Interest Expense is being
determined. For purposes of this definition, (a) "net" shall mean net of cash
interest income, and after giving effect to any Interest Hedge Agreements, and
(b) the amount of any upfront fees paid by such Person for any interest rate cap
shall be included in Cash Interest Expense, on a
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prorated basis over the life of the cap. In calculating the amount of Cash
Interest Expense prior to June 30, 1998, and in association with any
Acquisition, the Borrower shall make its best estimate of the net cash interest
expense which would have accrued in respect of the Borrower's Indebtedness for
Money Borrowed prior to the Agreement Date or the actual date of such
Acquisition, based on then prevailing interest rates and the Applicable Margin
payable by the Borrower on Loans hereunder. In calculating the amount of Cash
Interest Expense associated with any Acquisition at all subsequent times, the
Borrower shall use historical information for the portion of such period for
which it is available as to the blended interest rate paid by the Borrower on
its other Indebtedness for Money Borrowed during the period prior to such
Acquisition.
"CBC" shall mean Chancellor Broadcasting Company, a Delaware corporation.
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"CBC Preferred Stock" shall mean, collectively, that certain (a)
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$104,000,000 12 1/4% Senior Cumulative Exchangeable PIK Preferred Stock of CRBC
due 2008, (b) $200,000,000 12% Junior Cumulative Exchangeable PIK Preferred
Stock of CRBC, and (c) $110,000,000 Convertible Preferred Stock of CBC.
"Code" shall mean the Internal Revenue Code of 1986, as amended from time
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to time and the rules and regulations promulgated thereunder.
"Co-Documentation Agents" shall mean NationsBank of Texas, N.A. and Union
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Bank of California.
"Collateral" shall mean any property of any kind constituting collateral
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for the Obligations under any of the Security Documents.
"Collateral Assignment of Trust Interests" shall mean that certain
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Collateral Assignment of Trust Interests of even date, substantially in the form
of Exhibit C attached hereto.
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"Collateral Agent" shall mean the Administrative Agent, acting in its
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capacity as collateral agent under the Security Documents on behalf of the
Lenders and the Issuing Bank.
"Commitment Ratios" shall mean the percentages in which the Lenders are
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severally bound from time to time to make Advances to the Borrower under the
Revolving Loan Commitment and the Term Loan Commitment, which are set forth, as
of the Agreement Date, on Schedule 1 attached hereto.
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"Commitments" shall mean, collectively, the Revolving Loan Commitment and
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the Term Loan Commitment.
"Communications Act" shall mean the Communications Act of 1934, and any
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similar or successor federal statute, and the rules and regulations of the FCC
thereunder, all as the same may be in effect from time to time.
"Corporate Overhead" shall mean, for the Borrower in respect of any period
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(whether or not a fiscal or a calendar period), the sum for such period of all
reasonable and necessary (a) rental payments for the corporate offices of the
Borrower, (b) corporate salaries, (c) general and administrative expenses
incurred in connection with the operation of the corporate offices of the
Borrower, and (d) other expenses, without duplication, not otherwise allocated
to the Subsidiaries of the Borrower, provided that taxes, interest,
depreciation, amortization and other non-cash charges shall be excluded from the
calculation of such sum.
"Co-Syndication Agents" shall mean The Bank of New York and Bankers Trust
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Company.
"CRBC" shall mean Chancellor Radio Broadcasting Company, a Delaware
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corporation and a Subsidiary of CBC.
"CRBC Credit Agreement" shall mean that certain Amended and Restated Credit
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Agreement by and between CRBC, as borrower, Bankers Trust Company, as agent, and
the various financial institutions party thereto as lenders, dated as of
January 23, 1997, as amended or as amended and restated or as replaced from time
to time.
"CRBC Lenders" shall mean those financial institutions that, as of the
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Merger Date, are "Banks" (as defined in the CRBC Credit Agreement) under the
CRBC Credit Agreement.
"CRBC Subordinated Indebtedness" shall mean that certain subordinated
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Indebtedness for Money Borrowed existing as of the Agreement Date in the
aggregate principal amount not exceeding $260,000,000, issued by CRBC.
"Date of Issue" shall mean the date on which an Issuing Bank issues a
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Letter of Credit pursuant to Section 2.14 hereof.
"Default" shall mean any Event of Default, and any of the events specified
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in Section 8.1 hereof, regardless of whether there shall have occurred any
passage of time or giving of notice or both that would be necessary in order to
constitute such event an Event of Default.
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"Default Rate" shall mean a simple per annum interest rate equal to the sum
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of the otherwise applicable Interest Rate Basis (without any adjustment of the
maximum Applicable Margin under Section 2.3(f) hereof) plus two percent (2%).
"Divestiture Trust" shall mean any trust formed pursuant to a trust
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agreement substantially in the form of Exhibit R hereto, for the purpose of
holding any Radio Properties required to be sold to maintain compliance with the
market limitations on radio broadcast ownership contained in the
Telecommunications Act of 1966, and subject to a Binding Sale Agreement, pending
the sale of such Radio Properties, of which one hundred percent (100%) of the
outstanding economic interests in such trust are owned by the Borrower or a
Subsidiary of the Borrower.
"Environmental Laws" shall mean all applicable federal, state or local
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laws, statutes, rules, regulations, ordinances or permits relating to public
health, safety or the environment, including, without limitation, those relating
to releases, discharges, emissions or disposals to air, water, land or ground
water, to the withdrawal or use of ground water, to the use, handling or
disposal of polychlorinated biphenyls, asbestos or urea formaldehyde, to the
treatment, storage, disposal or management of hazardous substances (including,
without limitation, petroleum, crude oil or any fraction thereof, or other
hydrocarbons), pollutants or contaminants, to exposure to toxic, hazardous or
other controlled, prohibited, or regulated substances, including, without
limitation, any such provisions under the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended (42 U.S.C. (S) 9601 et seq.),
or the Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C. (S)
6901 et seq.).
"ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
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in effect from time to time.
"Eurodollar Advance" shall mean an Advance which the Borrower requests to
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be made as a Eurodollar Advance or which is reborrowed as a Eurodollar Advance,
and which bears interest at the Eurodollar Basis in accordance with the
provisions of Section 2.3 hereof, and which shall be in a principal amount of at
least $5,000,000 and in an integral multiple of $1,000,000.
"Eurodollar Basis" shall mean a simple per annum interest rate equal to the
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sum of (a) the quotient of (i) the Eurodollar Rate divided by (ii) one minus the
Eurodollar Reserve Percentage, stated as a decimal, plus (b) the Applicable
Margin. The Eurodollar Basis shall apply to Interest Periods of one (1), two
(2), three (3), six (6), and, to the extent provided below,
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twelve (12) months, and, once determined, shall remain unchanged during the
applicable Interest Period, except for changes to reflect adjustments in the
Eurodollar Reserve Percentage and changes in the Applicable Margin pursuant to
Section 2.3(f) hereof. The Borrower may elect an Interest Period of twelve (12)
months for a Eurodollar Advance unless the Administrative Agent has been
notified by at least one Lender that (i) such Lender does not have available to
it funds for its portion of the proposed Advance which are not required for
other purposes, or (ii) such funds are not available to such Lender at a rate at
or below the Eurodollar Rate of such proposed Advance and Interest Period.
"Eurodollar Rate" shall mean, for any Interest Period, the average of the
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interest rates per annum (rounded upward to the nearest one-sixteenth of one
percent (1/16%)) which appears on Telerate Page 3750 as of 11:00 a.m. (London,
England time) (or if such interest rate is no longer available from the Telerate
Page, such other comparable source designated by the Administrative Agent) two
(2) Business Days before the first day of such Interest Period, for a length of
time approximately equal to the Interest Period for, the Eurodollar Advance
sought by the Borrower.
"Eurodollar Reserve Percentage" shall mean the percentage which is in
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effect from time to time under Regulation D of the Board of Governors of the
Federal Reserve System, as such regulation may be amended from time to time, as
the maximum reserve requirement applicable with respect to Eurocurrency
Liabilities (as that term is defined in Regulation D), whether or not any Lender
has any such Eurocurrency Liabilities subject to such reserve requirement at
that time. The Eurodollar Basis for any Eurodollar Advance shall be adjusted as
of the effective date of any change in the Eurodollar Reserve Percentage.
"Event of Default" shall mean any of the events specified in Section 8.1
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hereof, provided that any requirement for notice or lapse of time has been
satisfied.
"FCC" shall mean the Federal Communications Commission, or any other
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similar or successor agency of the federal government administering the
Communications Act.
"Federal Funds Rate" shall mean, as of any date, the weighted average of
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the rates on overnight federal funds transactions with the members of the
Federal Reserve System arranged by federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if
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such rate is not so published for any day which is a Business Day, the average
of the quotations for such day on such transactions received by the
Administrative Agent from three (3) federal funds brokers of recognized standing
selected by the Administrative Agent.
"Fee Letters" shall mean, collectively, (a) those certain agreements dated
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as of the Agreement Date setting forth the applicable facility fee for each of
the Lenders relating to this Agreement and the Loans and Commitments created
hereunder, and (b) additional fee letters dated as of the Agreement Date between
the Administrative Agent, each of the Arranging Agent, the Managing Agents, and
the Borrower.
"GAAP" shall mean generally accepted accounting principles in the United
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States, as in effect from time to time, consistently applied.
"Gannett Transaction" shall mean the transactions contemplated by those
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certain Asset Purchase Agreements, each dated April 4, 1997, and executed by the
Borrower, pursuant to which the Borrower agrees to buy certain radio properties
owned by Pacific and Southern Company, Inc., a Subsidiary of Gannett Co., Inc.
in the Chicago, Dallas and Houston markets for total consideration not exceeding
$350,000,000, which rights under such contracts have been assigned by the
Borrower to Evergreen Media Corporation of Texas, a Delaware corporation and an
Unrestricted Subsidiary.
"Guaranty" or "Guaranteed," as applied to an obligation, shall mean and
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include (a) a guaranty, direct or indirect, in any manner, of any part or all of
such obligation, and (b) any agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment or
performance (or payment of damages in the event of non-performance) of any part
or all of such obligation, including, without limiting the foregoing, any
reimbursement obligations as to amounts drawn by beneficiaries of outstanding
letters of credit. For purposes of this Agreement and the other Loan Documents,
"Guaranty" shall not include the obligation of the Parent Company to issue its
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common equity securities under a certain Letter Agreement dated as of April 9,
1997, in favor of the Managing Agents, in connection with the financing of the
Gannett Transaction.
"Indebtedness" shall mean, with respect to any Person, and without
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duplication, (a) all items, except items of partners' equity or Capital Stock or
surplus or general contingency or deferred tax reserves, which in accordance
with GAAP would be
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included in determining total liabilities as shown on the liability side of a
balance sheet of such Person, including, without limitation, secured non-
recourse obligations of such Person, (b) all direct or indirect obligations
secured by any Lien to which any property or asset owned by such Person is
subject, but only to the extent of the higher of the fair market value or the
book value of the property or asset subject to such Lien if the obligation
secured thereby shall not have been assumed, (c) to the extent not otherwise
included, all Capitalized Lease Obligations of such Person and all obligations
of such Person with respect to leases constituting part of a sale and lease-back
arrangement, and (d) all reimbursement obligations (contingent or otherwise)
with respect to outstanding letters of credit.
"Indebtedness for Money Borrowed" shall mean, with respect to any Person,
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Indebtedness for money borrowed (including Capitalized Lease Obligations) and
Indebtedness represented by notes payable and drafts accepted representing
extensions of credit, all obligations evidenced by bonds, debentures, notes or
other similar instruments, all Indebtedness upon which interest charges are
customarily paid, all Indebtedness issued or assumed as full or partial payment
for property or services (other than trade payables), whether or not any such
notes, drafts, obligations or Indebtedness represent Indebtedness for money
borrowed, as well as reimbursement obligations (contingent or otherwise) with
respect to outstanding Letters of Credit, and including, without duplication,
Guaranties of any of the foregoing, except that such Indebtedness for money
borrowed will not include current accounts payable, accrued expenses and
customer advance payments incurred in the ordinary course of business. For
purposes of this definition, interest which is accrued but not paid on the
scheduled due date for such interest shall be deemed Indebtedness for Money
Borrowed.
"Indemnitee" shall have the meaning ascribed to it in Section 5.10 hereof.
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"Initial Letters of Credit" shall mean three (3) Letters of Credit issued
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by the Houston agency of The Toronto-Dominion Bank in favor of Pacific and
Southern Company, Inc., a Subsidiary of Gannett Co., Inc., in the aggregate face
amount of $34,000,000, which were issued on or about April 9, 1997, in
connection with the Gannett Transaction.
"Initial Term Loan Commitment" shall mean the several obligations of the
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Lenders to advance the sum of up to $500,000,000, in accordance with their
respective Commitment Ratios, to the Borrower on the Agreement Date pursuant to
the
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terms hereof.
"Interest Hedge Agreements" shall mean any interest rate swap agreements,
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interest rate cap agreements, interest rate collar agreements, or similar
arrangements designed to hedge the risk of variable interest rate volatility or
to reduce interest costs, arising at any time between the Borrower, on the one
hand, and the Administrative Agent or one or more of the Lenders, or any other
Person, on the other hand, as such agreement or arrangement may be modified,
supplemented and in effect from time to time, such agreement or arrangement to
be in form acceptable to the Administrative Agent (provided that the
documentation prescribed by the most current edition of the Code of Standard
Wording, Assumptions and Provisions for Swaps, promulgated by the International
Swap Dealers Association, Inc., shall be deemed to be acceptable for all
purposes).
"Interest Period" shall mean (a) in connection with any Prime Rate Advance,
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the period beginning on the date such Advance is made and ending on the last day
of the fiscal quarter in which such Advance is made; provided, however, that if
a Prime Rate Advance is made on the last day of any fiscal quarter, it shall
have an Interest Period ending on, and its Payment Date shall be, the last day
of the following fiscal quarter, and (b) in connection with any Eurodollar
Advance, the term of such Advance selected by the Borrower or otherwise
determined in accordance with this Agreement. Notwithstanding the foregoing,
however, (i) any applicable Interest Period which would otherwise end on a day
which is not a Business Day shall be extended to the next succeeding Business
Day unless, with respect to Eurodollar Advances only, such Business Day falls in
another month, in which case such Interest Period shall end on the next
preceding Business Day, (ii) any applicable Interest Period, with respect to
Eurodollar Advances only, which begins on a day for which there is no
numerically corresponding day in the month during which such Interest Period is
to end shall (subject to clause (i) above) end on the last day of such month,
and (iii) no Interest Period shall extend beyond the Maturity Date or such
earlier date as would interfere with the Borrower's repayment obligations under
Section 2.4 or Section 2.7 hereof. Interest shall be due and payable with
respect to any Advance as provided in Section 2.3 hereof.
"Interest Rate Basis" shall mean the Prime Rate Basis or the Eurodollar
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Basis, as appropriate.
"Investment" shall mean, with respect to any Person, any loan, advance or
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extension of credit (other than to trade customers in the ordinary course of
business) by such Person to,
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and any guaranty or other contingent liability with respect to the Capital
Stock, Indebtedness or other obligations of, or any contributions to the capital
of, any other Person, as well as any ownership, purchase or other acquisition by
such Person of any interest in any Capital Stock or other securities of any such
other Person, other than an Acquisition.
"Issuing Bank" shall mean The Toronto-Dominion Bank, and any other Person
------------
which The Toronto-Dominion Bank may hereafter designate as a successor Issuing
Bank pursuant to an Assignment and Assumption Agreement or otherwise.
"Joint Purchase Agreement" shall mean that certain Joint Purchase Agreement
------------------------
dated as of the 19th day of February, 1997, by and between CRBC, CBC, the
Borrower and the Parent Company.
"Lenders" shall mean the financial institutions whose names appear as
-------
'Lenders' on the signature pages hereof, and any other Person which becomes a
"Lender" hereunder after the Agreement Date and, on and after the Merger Date,
'Lenders' also shall include the CRBC Lenders; and "Lender" shall mean any one
------
of the foregoing Lenders.
"Letter of Credit Commitment" shall mean the obligation of the Issuing Bank
---------------------------
to issue Letters of Credit in an aggregate face amount from time to time not to
exceed the Available Letter of Credit Amount.
"Letter of Credit Obligations" shall mean, at any time, the sum of (a) an
----------------------------
amount equal to the aggregate undrawn and unexpired amount (including the amount
to which any such Letter of Credit can be reinstated pursuant to the terms
hereof) of the then outstanding Letters of Credit and (b) an amount equal to the
aggregate drawn, but unreimbursed drawings of any Letters of Credit.
"Letter of Credit Reserve Account" shall mean any account maintained by the
--------------------------------
Administrative Agent for the benefit of any Issuing Bank, the proceeds of which
shall be applied as provided in Section 8.2(d) hereof.
"Letters of Credit" shall mean the Initial Letters of Credit and any other
-----------------
letters of credit issued by the Issuing Bank on behalf of the Borrower or any of
its Subsidiaries from time to time in accordance with Section 2.14 hereof, such
letters of credit to support obligations of the Borrower and its Subsidiaries in
the ordinary course of business, including, without limitation, the use of such
letters of credit as down payments or deposits for Acquisitions.
-14-
"License Subs" shall mean the Subsidiaries of the Borrower identified as
------------
License Subs on Schedule 2 attached hereto, together with any other Subsidiaries
----------
of the Borrower meeting the description of "License Subs" in Section 5.2 hereof
formed after the Agreement Date.
"Licenses" shall mean the licenses, authorizations and permits for the
--------
operation of AM and FM broadcasting stations issued by the FCC and held by the
Borrower or any of its Subsidiaries, including those subject to any LMA
(Existing Station). The main broadcasting Licenses for each broadcast radio
station owned by the Borrower and its Subsidiaries are listed as of the
Agreement Date on Schedule 3 hereto.
----------
"Lien" shall mean, with respect to any property, any mortgage, lien,
----
pledge, assignment, charge, security interest, title retention agreement, levy,
execution, seizure, attachment, garnishment or other encumbrance of any kind in
respect of such property, whether created by statute, contract, the common law
or otherwise, and whether or not xxxxxx, vested or perfected.
"LMA (Existing Station)" shall mean any Local Marketing Agreement permitted
----------------------
hereunder entered into by the Borrower or any of its Subsidiaries pursuant to
which another Person will provide marketing and other services to a Station
owned by the Borrower or one of its Subsidiaries.
"LMA (New Station)" shall mean any Local Marketing Agreement permitted
-----------------
hereunder entered into by the Borrower or any of its Subsidiaries pursuant to
which the Borrower or one of its Subsidiaries will provide marketing and other
services to a radio station owned by a Person other than the Borrower or one of
its Subsidiaries.
"Loans" shall mean, collectively, the Revolving Loan and the Term Loan.
-----
"Loan Documents" shall mean, without limitation, this Agreement, the Notes,
--------------
the Security Documents, the Collateral Agency Agreement, the Fee Letters, all
legal opinions or reliance letters issued by counsel to the Borrower or any of
its Subsidiaries, all Requests for Advance, all Requests for Issuance of Letters
of Credit, the Use of Proceeds Letter, all Interest Hedge Agreements between the
Borrower, on the one hand, and the Administrative Agent and the Lenders, or any
of them, on the other hand, and all other documents and agreements executed or
delivered in connection with or contemplated by this Agreement.
"Managing Agents" shall mean The Toronto-Dominion Bank,
---------------
-15-
Bankers Trust Company, The Bank of New York, NationsBank of Texas, N.A. and
Union Bank of California.
"Material License" shall mean any broadcast License or other License which
----------------
is material to the operation of a Station, and which Station, as of the date of
consideration, generated three percent (3%) or more of the Borrower's Operating
Cash Flow for the most recently completed four fiscal quarter period.
"Materially Adverse Effect" shall mean any materially adverse effect upon
-------------------------
the business, assets, liabilities, financial condition, results of operations,
properties, or business prospects of the Borrower and its Subsidiaries, taken as
a whole, or upon the ability of the Borrower and its Subsidiaries to perform the
payment obligations or other material obligations under this Agreement or any
other Loan Document; in any case, whether resulting from any single act,
omission, situation, status, event or undertaking, or taken together with other
such acts, omissions, situations, statuses, events or undertakings.
"Maturity Date" shall mean June 30, 2005, or such earlier date as payment
-------------
of amounts outstanding in respect of the Loans and other Obligations (other than
those which expressly survive the termination of this Agreement) shall be due
(whether by acceleration or otherwise).
"Merger" shall mean the merger of CBC, CRBC and the Parent Company, with
------
the Parent Company being the surviving corporation, or, alternatively, the
merger of CBC with and into the Parent Company and the merger of CRBC with and
into the Borrower, with the Parent Company and the Borrower being the surviving
corporations, in either case pursuant to the Merger Agreement.
"Merger Agreement" shall mean that certain Agreement and Plan of Merger
----------------
among CBC, CRBC, and the Parent Company dated as of February 19, 1997, as
amended.
"Merger Date" shall mean the date on which the Merger is consummated.
-----------
"Multiemployer Plan" shall have the meaning set forth in Section 4001(a)(3)
------------------
of ERISA.
"Necessary Authorizations" shall mean all approvals and licenses from, and
------------------------
all filings and registrations with, any governmental or other regulatory
authority, including, without limiting the foregoing, the Licenses and
approvals, licenses, filings and registrations under the Communications Act,
necessary in order to enable the Borrower and its Subsidiaries to
-16-
construct, maintain and operate the Radio Properties.
"Net Cash Proceeds" shall mean, with respect to any Required Divestiture
-----------------
being sold pursuant to a Binding Sale Agreement by the Borrower or any
Subsidiary, the gross sales price for the assets being sold, net of (a) amounts
reserved, if any, for taxes payable in the Adjustment Period with respect to any
such sale (after application of any available losses, credits or other offsets),
(b) reasonable and customary transaction costs payable by the Borrower or any of
the Subsidiaries or the Parent Company in connection with such sale, including,
without limitation, commissions and underwriting discounts, (c) contingencies
with respect to any such sale appropriately reserved for by the Borrower or any
Subsidiary, and (d) any portion of the sales price held in escrow or evidenced
by a seller promissory note, equity securities issued by the purchaser of such
assets, or any consulting agreement, or non-compete agreement or covenant for
which compensation is paid over time.
"Net Proceeds" shall mean, with respect to any sale of assets by the
------------
Borrower or any Subsidiary, any issuance by the Borrower or any Subsidiary of
any Capital Stock permitted hereunder, or any issuance by the Parent Company for
cash of any Indebtedness for Money Borrowed, or any Capital Stock or other
equity securities, the gross sales price for the assets or stock being sold or
issued (including, without limitation, any payments received for non-competition
covenants, consulting or management fees, and any portion of the sales price
evidenced by a seller promissory note or other evidence of Indebtedness), net of
(a) amounts reserved, if any, for taxes payable with respect to any such sale
(after application of any available losses, credits or other offsets), (b)
reasonable and customary transaction costs payable by the Borrower or any of the
Subsidiaries or the Parent Company in connection with the sale of assets or
issuance of Capital Stock or Indebtedness for Money Borrowed, including, without
limitation, commissions and underwriting discounts, (c) contingencies with
respect to any such sale appropriately reserved for by the Borrower or any
Subsidiary, and (d) until actually received, or converted into cash, by the
Borrower or any Subsidiary, any portion of the sales price held in escrow or
evidenced by a seller promissory note, equity securities issued by the purchaser
of such assets, or any consulting agreement, or non-compete agreement or
covenant for which compensation is paid over time. Upon receipt by the Borrower
or any Subsidiary of amounts referred to in item (d) of the preceding sentence,
or the elimination of contingencies reserved for in item (c) of the preceding
sentence, such amounts shall be deemed to be "Net Proceeds."
-17-
"Net Proceeds Trust" shall have the meaning ascribed to it in Section 2.7
------------------
hereof.
"Net Revenues" shall mean, unless otherwise indicated, for the Borrower and
------------
its Subsidiaries on a consolidated basis in respect of any period, gross
revenues (including any revenues in respect of Local Marketing Agreements
associated with any LMA (Existing Station) or LMA (New Station)) net of sales
commissions paid or payable.
"Non-Core Business" shall mean any Person not engaged principally in the
-----------------
radio broadcast business.
"Notes" shall mean, collectively, the Revolving Notes and the Term Notes.
-----
"Obligations" shall mean (a) all payment and performance obligations of the
-----------
Borrower, its Subsidiaries, and any other obligors, to the Lenders, the
Administrative Agent (for the ratable benefit of the Lenders and the Issuing
Bank), the Collateral Agent or any of them, under this Agreement (including,
without limitation, any Additional Facility Indebtedness) and the other Loan
Documents (including, without limitation, any Interest Hedge Agreements between
the Borrower, on the one hand, and the Administrative Agent and the Lenders, or
any of them, on the other hand, and any interest, fees and other charges on the
Loans or the Letters of Credit or otherwise under the Loan Documents that would
accrue but for the filing of a bankruptcy action with respect to the Borrower,
whether or not such claim is allowed in such bankruptcy action), as they may be
amended from time to time, or as a result of making the Loans or issuing the
Letters of Credit, and (b) the obligation to pay an amount equal to the amount
of any and all damage which the Lenders, the Issuing Bank, the Administrative
Agent (for the ratable benefit of the Lenders and the Issuing Bank), the
Collateral Agent or any of them, may suffer by reason of a breach by the
Borrower, any of its Subsidiaries, or any other obligor, of any obligation,
covenant or undertaking with respect to this Agreement or any other Loan
Document.
"Operating Cash Flow" shall mean, unless otherwise indicated, for the
-------------------
Borrower and its Subsidiaries on a consolidated basis in respect of any period
(whether or not a fiscal or a calendar period), Broadcast Cash Flow minus the
amount of Corporate Overhead.
"Parent Company" shall mean Evergreen Media Corporation, a Delaware
--------------
corporation, which, as of the Agreement Date, owns all of the issued and
outstanding Capital Stock of the Borrower.
-18-
"Parent Company Guaranty" shall mean that certain Second Amended and
-----------------------
Restated Parent Company Guaranty of even date, issued by the Parent Company in
favor of the Collateral Agent, in substantially the form attached hereto as
Exhibit D.
---------
"Payment Date" shall mean the last day of any Interest Period.
------------
"PBGC" shall mean the Pension Benefit Guaranty Corporation, or any
----
successor thereto.
"Pending Transactions" shall mean the Merger and the Viacom Purchase.
--------------------
"Permitted Asset Sale" shall have the meaning ascribed to such term in
--------------------
Section 7.4(b) hereof.
"Permitted Guaranties" shall mean any Guaranty issued by the Borrower or
--------------------
any of its Subsidiaries which falls within any of the following categories: (a)
a Guaranty by endorsement of negotiable instruments for collection in the
ordinary course of business, (b) any Guaranty of obligations under agreements of
the Borrower or any of its Subsidiaries entered into in connection with leases
of real property or the acquisition of services, supplies and equipment in the
ordinary course of business, (c) other guaranties which do not exceed $5,000,000
in the aggregate at any time outstanding, (d) Guaranties which are Loan
Documents, (e) unsecured, subordinated Guaranties of Subordinated Indebtedness
permitted hereunder, which subordinated Guaranties shall be subject to terms of
subordination acceptable to the Administrative Agent, and (f) Guaranties of
Indebtedness for Money Borrowed (other than Subordinated Indebtedness) which is
expressly permitted under Section 7.1 hereof.
"Permitted Liens" shall mean, as applied to any Person:
---------------
(a) Any Lien in favor of the Lenders, the Administrative Agent, the
Collateral Agent, or any of them, given to secure the Obligations under the
Security Documents;
(b) (i) Liens on real estate for real estate taxes not yet
delinquent and (ii) Liens for taxes, assessments, judgments, governmental
charges or levies or claims the non-payment of which is being diligently
contested in good faith by appropriate proceedings and for which adequate
reserves under GAAP have been set aside on such Person's books;
(c) Liens of carriers, warehousemen, mechanics, laborers and
materialmen and other similar Liens incurred in the
-19-
ordinary course of business for sums not yet due or being diligently contested
in good faith, if such reserve or appropriate provision, if any, as shall be
required by GAAP shall have been made therefor;
(d) Liens incurred or deposits made in the ordinary course of
business or otherwise in connection with worker's compensation, unemployment
insurance and other types of social security or similar legislation; deposits
for the payment of rent (provided that such deposits are security for the
payment of rent and are required in the ordinary course of business), and good
faith deposits in connection with bids, tenders, contracts, or leases to which
the Borrower or any of its Subsidiaries are parties, deposits to secure public
or statutory obligations of the Borrower or any of its Subsidiaries, deposits of
cash or U.S. Government bonds to secure surety or performance bonds to which the
Borrower or any of its Subsidiaries are parties or which are issued for their
account;
(e) Restrictions on the transfer of assets imposed by any of the
Licenses as presently in effect or by the Communications Act and any regulations
thereunder;
(f) Easements, rights-of-way, restrictions (including zoning
restrictions), encroachments, minor title deficiencies, and other similar
encumbrances on the use of real property which do not materially interfere with
the ordinary conduct of the business of such Person, or Liens incidental to the
conduct of the business of such Person or to the ownership of its properties
which were not incurred in connection with Indebtedness or other extensions of
credit and which do not in the aggregate materially detract from the value of
such properties or materially impair their use in the operation of the business
of such Person;
(g) Purchase money security interests which are perfected by
operation of law only for a period not in excess of ten (10) days after the
inception thereof and limited to Liens on assets so purchased;
(h) Liens reflected by Uniform Commercial Code financing statements
filed in respect of Capitalized Lease Obligations (to the extent permitted
hereunder) and true leases of the Borrower or any of its Subsidiaries, to the
extent such Liens relate to the assets which are the subject thereof; and
(i) Any Liens of record whether now existing or hereafter arising,
which Liens to the extent they are now existing are listed as of the Agreement
Date on Schedule 4 attached hereto, and which secure Indebtedness in an amount
----------
not
-20-
to exceed $10,000,000 in the aggregate at any time.
"Person" shall mean an individual, corporation, limited liability company,
------
association, partnership, trust or estate, an unincorporated organization, a
government or any agency or political subdivision thereof, or any other entity.
"Plan" shall mean an employee benefit plan within the meaning of Section
----
3(3) of ERISA or any other employee benefit plan maintained for employees of any
Person or any affiliate of such Person, other than a Multiemployer Plan.
"Preferred Stock" shall mean (a) the CBC Preferred Stock upon the
---------------
assumption thereof by the Borrower or the Parent Company at any time on or after
the Merger Date, and (b) any other preferred stock issued by the Parent Company
or the Borrower consistent with the terms and provisions of this Agreement.
"Prime Rate" shall mean, at any time, the higher of (a) the rate of
----------
interest adopted by the Administrative Agent, as the reference rate for the
determination of interest rates for loans of varying maturities in United States
dollars to United States residents of varying degrees of creditworthiness and
being quoted at such time by the Administrative Agent as its "prime rate," and
(b) the Federal Funds Rate plus five-eighths of one percent (5/8%). The Prime
Rate is not necessarily the lowest rate of interest charged to borrowers of the
Administrative Agent.
"Prime Rate Advance" shall mean an Advance which the Borrower requests to
------------------
be made as a Prime Rate Advance or is reborrowed as a Prime Rate Advance, and
which bears interest at the Prime Rate Basis in accordance with the provisions
of Section 2.3 hereof, and which shall be in a principal amount of at least
$5,000,000, and in an integral multiple of $1,000,000.
"Prime Rate Basis" shall mean a simple interest rate equal to the sum of
----------------
(i) the Prime Rate and (ii) the Applicable Margin. The Prime Rate Basis shall
be adjusted automatically as of the opening of business on the effective date of
each change in the Prime Rate to account for such change and shall also be
changed to reflect adjustments in the Applicable Margin pursuant to Section
2.3(f).
"Prior Loan Agreement" shall have the meaning assigned to it
--------------------
in the Recitals of this Agreement.
"Pro Forma Fixed Charges" shall mean for the Borrower and its Subsidiaries
-----------------------
on a consolidated basis with respect to any prospective period of four fiscal
quarters commencing on the day
-21-
after the applicable calculation date, in each case after giving effect to any
Interest Hedge Agreements and Eurodollar Advances, the sum of (a) the aggregate
amount of all principal, interest, fees and other payments scheduled to be made
by such Persons during such period of four fiscal quarters in respect of
Indebtedness for Money Borrowed plus (b) the aggregate amount of all payments
scheduled to be made by such Persons during such period in respect of
Capitalized Lease Obligations and obligations with respect to leases
constituting part of a sale and lease-back arrangement, plus (c) Capital
Expenditures budgeted in good faith for such period, plus (d) taxes projected to
be paid in such period, plus (e) all Restricted Payments and Restricted
Purchases which are (i) to be used to pay cash dividends on any Preferred Stock
or interest on Subordinated Indebtedness incurred by the Parent Company or the
Borrower, (ii) otherwise permitted to be made hereunder, and (iii) scheduled or
otherwise anticipated to be made during such period. For purposes of this
definition, where interest payments for the twelve-month period immediately
succeeding the calculation date are not fixed by way of Interest Hedge
Agreements, Eurodollar Advances, or otherwise for the entire period, interest
shall be calculated on such Indebtedness for Money Borrowed for periods for
which interest payments are not so fixed at the Eurodollar Basis (based on the
then current adjustment to the Applicable Margin under Section 2.3(f) hereof)
for a Eurodollar Advance having an Interest Period of six (6) months as
determined on the date of calculation.
"Qualified Intermediary" shall have the meaning ascribed to such term in
----------------------
Section 2.7(a) hereof.
"Radio Properties" shall mean the Licenses and related assets used in
----------------
connection with the radio broadcasting business conducted by the Borrower and
its Subsidiaries.
"Reimbursement Obligations" shall mean the payment obligations of the
-------------------------
Borrower under Section 2.14 hereof.
"Relinquished Property" shall have the meaning ascribed to such term in
---------------------
Section 2.7(a) hereof.
"Reportable Event" shall have the meaning set forth in Title IV of ERISA.
----------------
"Request for Advance" shall mean any certificate signed by an Authorized
-------------------
Signatory (who may be the Chief Financial Officer or the Vice President Finance)
requesting an Advance hereunder which will increase the aggregate amount of the
Loans then outstanding, which certificate shall be denominated a "Request
-22-
for Advance," shall be in substantially the form of Exhibit E-1, E-2, or E-3,
----------- --- ---
attached hereto, as appropriate, and shall, among other things, (a) specify the
date of the Advance, which shall be a Business Day, the amount of the Advance,
the type of Advance and, with respect to Eurodollar Advances, the Interest
Period selected by the Borrower, (b) state that there shall not exist, on the
date of the requested Advance and after giving effect thereto, a Default under
this Agreement, (c) with respect to Advances made in connection with
Acquisitions or on the Agreement Date, provide calculations (using the most
recent twelve-month period for which financial statements are available)
specifically demonstrating the Borrower's compliance with Sections 7.8, 7.9, and
7.10 hereof as of the date of such Advance and after giving effect thereto, and
(d) specify the use of the additional proceeds of the Loans being requested.
"Request for Issuance of Letter of Credit" shall mean any certificate
----------------------------------------
signed by an Authorized Signatory requesting that an Issuing Bank issue a Letter
of Credit hereunder, which certificate shall be in substantially the form of
Exhibit F attached hereto, and shall, among other things, (a) state the
---------
requested stated amount of the Letter of Credit (which shall be in United States
Dollars), (b) the effective date (which shall be a Business Day) for the
issuance of such Letter of Credit, (c) the date on which such Letter of Credit
is to expire (which shall be a Business Day and which shall be subject to
Section 2.14(a) hereof), (d) the Person for whose benefit such Letter of Credit
is to be issued, (e) other relevant terms of such Letter of Credit, and (f) the
Available Letter of Credit Amount as of the schedule date of issuance of such
Letter of Credit.
"Required Divestitures" shall mean those Radio Properties identified by the
---------------------
Borrower and shown on Schedule 5 attached hereto which, as a result of the
----------
Pending Transactions and other Acquisitions which are under contract as of the
Agreement Date, are to be sold or otherwise disposed of to maintain compliance
by the Parent Company and the Borrower with the market limitations on radio
broadcast ownership contained in the Telecommunications Act of 1996.
"Required Lenders" shall mean, at any time, (a) if there are no Loans
----------------
outstanding, Lenders the total of whose Commitment Ratios equals or exceeds
fifty-one percent (51%), or (b) subject to Section 2.2(e)(iv) hereof, if there
are Loans outstanding, Lenders the total of whose Loans outstanding equals or
exceeds fifty-one percent (51%) of the total principal amount of the Loans then
outstanding hereunder.
"Restricted Payment" shall mean (a) any direct or indirect
------------------
-23-
distribution, dividend or other payment to any Person (other than the Borrower
or any Subsidiary of the Borrower) on account of any general or limited
partnership interest in, or shares of Capital Stock or other securities of, the
Borrower or any of its Subsidiaries, including, without limitation, any warrants
or other rights or options to acquire shares of Capital Stock of the Borrower or
any of its Subsidiaries, and (b) any payment of principal of or interest on, or
any defeasance, repurchase, redemption, or other acquisition of, any
Subordinated Indebtedness.
"Restricted Purchase" shall mean any payment on account of the purchase,
-------------------
redemption or other acquisition or retirement of any general or limited
partnership interest in, or shares of Capital Stock or other securities of, the
Parent Company, the Unrestricted Subsidiary, the Borrower or any of the
Borrower's Subsidiaries, including, without limitation, any warrants or other
rights or options to acquire shares of Capital Stock of the Parent Company, the
Unrestricted Subsidiary, the Borrower or any of the Borrower's Subsidiaries.
"Revolving Loan" shall mean, collectively, the amounts advanced by the
--------------
Lenders to the Borrower under the Revolving Loan Commitment evidenced by the
Revolving Notes.
"Revolving Loan Commitment" shall mean the several obligations of the
-------------------------
Lenders to advance a sum not to exceed $1,250,000,000 at any one time
outstanding, in accordance with their respective Commitment Ratios, to the
Borrower pursuant to the terms hereof, as such obligations may be reduced from
time to time pursuant to the terms hereof; provided, however, on the Merger
Date, and upon the agreement of the CRBC Lenders, the Revolving Loan Commitment
then existing hereunder shall be increased by an amount equal to the Additional
Revolving Loan Commitment being issued by the CRBC Lenders.
"Revolving Notes" shall mean those certain reducing, revolving promissory
---------------
notes issued on the Agreement Date in the aggregate original principal amount of
$1,000,000,000, and those certain reducing, revolving promissory notes issued on
the Merger Date in the aggregate principal amount of the Additional Revolving
Loan Commitment, one issued to each of the Lenders by the Borrower, each one
substantially in the form of Exhibit G attached hereto, and any extensions,
---------
renewals, or amendments to any of the foregoing.
"Security Documents" shall mean the Assignment of Partnership Interests,
------------------
the Collateral Assignment of Trust Interests, the Borrower's Pledge Agreement,
the Stock Pledge
-24-
Agreement, the Subsidiary Guaranty, the Parent Company Guaranty, the Subsidiary
Pledge Agreement, any other agreement or instrument providing collateral for the
Obligations whether now or hereafter in existence or requested from time to
time, and any filings, instruments, agreements, and documents related thereto or
to this Agreement, and providing the Collateral Agent, for itself and for the
ratable benefit of the Administrative Agent, the Lenders and the Issuing Bank,
with Collateral for the Obligations.
"Security Interest" shall mean all Liens in favor of the Collateral Agent,
-----------------
for itself and for the ratable benefit of the Administrative Agent, the Lenders,
and the Issuing Bank, created under any of the Security Documents to secure the
Obligations.
"Senior Debt" shall mean, as of any date, all outstanding Indebtedness for
-----------
Money Borrowed of the Borrower to the Lenders and the Administrative Agent
hereunder (including, without limitation, any Additional Facility Indebtedness).
"Senior Leverage Covenant" shall mean the maximum Senior Leverage Ratio for
------------------------
the period permitted under Section 7.8 hereof.
"Senior Leverage Ratio" shall mean as of the last day of any fiscal
---------------------
quarter, the ratio of (a)(i) Senior Debt (less any amount in a Net Proceeds
Trust (if and to the extent that the Administrative Agent has a valid Lien on
the funds on deposit in the Net Proceeds Trust) or "qualified escrow account" as
contemplated by Section 2.7(a) hereof) plus (ii) Capitalized Lease Obligations
of the Borrower and its Subsidiaries, plus (iii) other Indebtedness for Money
Borrowed to the extent secured by Liens permitted under subsection (i) of the
definition of Permitted Liens, to (b) Operating Cash Flow for the twelve (12)
month period then ended; provided, however, solely for purposes of determining
-------- -------
compliance with Section 7.8 hereof, (i) during the Adjustment Period, if the
Borrower's Total Leverage Ratio is otherwise not less than 7.00 to 1.00 or
greater than 7.50 to 1.00 at such time, the Borrower may deduct from clause (a)
above the expected amount of Net Cash Proceeds which will be received by the
Borrower or any Subsidiary of the Borrower under any Binding Sale Agreement upon
the consummation of the sale of the Required Divestiture set forth therein, and
(ii) prior to the Merger Date, and without duplication of any amounts deducted
pursuant to clause (i) of this proviso, the Borrower may deduct from clause (a)
above up to $34,000,000 in cash down payments held in escrow accounts with
respect to Required Divestitures for Radio Properties currently pending sale
pursuant to a Binding Sale Agreement.
-25-
"Senior Notes" shall mean those certain 11.59% Senior Secured Notes due May
------------
1, 1999, issued by the Borrower as of May 15, 1989, as amended, in favor of
Teachers Insurance and Annuity Association of America, a New York life insurance
company, in the aggregate original principal amount of $20,000,000, together
with all securities issued in exchange or replacement therefor.
"Stations" shall mean the radio broadcast stations owned on a consolidated
--------
basis by the Borrower and its Subsidiaries, which are listed as of the Agreement
Date on Schedule 3 attached hereto, and any other radio broadcast station the
----------
assets and Licenses of which are hereafter transferred to or otherwise held by
the Borrower or any of its Subsidiaries.
"Stock Pledge Agreement" shall mean that certain Second Amended and
----------------------
Restated Stock Pledge Agreement of even date, substantially in the form of
Exhibit H attached hereto.
---------
"Subordinated Indebtedness" shall mean (a) the CRBC Subordinated
-------------------------
Indebtedness upon the assumption thereof by the Borrower or the Parent Company,
at any time on or after the Merger Date, and (b) any other Indebtedness for
Money Borrowed or Guaranties thereof of the Borrower or the Parent Company,
which is expressly subordinated to the Obligations and which, in addition, meets
each of the following criteria: (i) such Indebtedness for Money Borrowed or
Guarantees thereof shall be unsecured; (ii) such Indebtedness for Money Borrowed
shall have no amortization of principal prior to the Maturity Date and shall
mature at least one year and one day after the Maturity Date; (iii) the terms,
provisions and covenants of such Indebtedness for Money Borrowed and any
subordinated unsecured Guarantees must (A) be less restrictive than, and not in
conflict with, the terms, provisions and covenants set forth in the Loan
Documents, and (B) not be cross-defaulted to the Loan Documents (except for the
occurrence of an Event of Default as a result of the Borrower's failure to pay
the Obligations in full on the Maturity Date or the acceleration of the
Obligations under Section 8.2(a)(ii) or Section 8.2(b)); (iv) the documentation
of the subordination provisions therefor shall prohibit the payment of
principal, interest and fees on such Indebtedness for Borrowed Money upon the
occurrence, and during the continuation, of an Event of Default under Section
8.1(b) hereof, and shall prohibit the payment of principal, interest and fees on
such Indebtedness for Borrowed Money for a period of 179 days after the
occurrence of any Event of Default under Section 8.1 (other than Section
8.1(b)), and shall otherwise be acceptable to the Administrative Agent; (v) no
Default or Event of Default shall exist either immediately prior to, and giving
effect to, the incurrence of
-26-
such Indebtedness for Borrowed Money; and (vi) such Indebtedness for Money
Borrowed shall not be incurred unless, prior to its incurrence, the Borrower
shall have delivered to each of the Lenders updated financial projections
(prepared in good faith and using assumptions reasonable under the
circumstances) demonstrating that, after giving effect to the incurrence of such
Indebtedness for Money Borrowed, compliance with all financial covenants under
this Agreement is maintained from the date of such projections through the
Maturity Date.
"Subsequent Term Loan Commitment" shall mean the several obligations of the
-------------------------------
CRBC Lenders to advance or to permit to remain outstanding the aggregate
principal amount of $400,000,000 to the Borrower on the Merger Date.
"Subsidiary" shall mean, as applied to any Person, (a) any corporation of
----------
which fifty percent (50%) or more of the outstanding stock (other than
directors' qualifying shares) having ordinary voting power to elect a majority
of its board of directors, regardless of the existence at the time of a right of
the holders of any class or classes of securities of such corporation to
exercise such voting power by reason of the happening of any contingency, or any
partnership of which fifty percent (50%) or more of the outstanding partnership
interests, is at the time owned directly or indirectly by such Person, or by one
or more Subsidiaries of such Person, or by such Person and one or more
Subsidiaries of such Person, or (b) any other entity which is directly or
indirectly controlled or capable of being controlled by such Person, or by one
or more Subsidiaries of such Person, or by such Person and one or more
Subsidiaries of such Person. As applied to the Borrower, "Subsidiary" shall
also include any Divestiture Trust. The Subsidiaries of the Borrower as of the
Agreement Date are set forth on Schedule 2 attached hereto.
----------
"Subsidiary Guaranty" shall mean that certain Second Amended and Restated
-------------------
Subsidiary Guaranty of even date, substantially in the form of Exhibit I
---------
attached hereto.
"Subsidiary Pledge Agreement" shall mean that certain Second Amended and
---------------------------
Restated Subsidiary Pledge Agreement of even date, substantially in the form of
Exhibit J attached hereto.
---------
"Term Loan" shall mean, collectively, the amounts advanced by the Lenders
---------
to the Borrower under the Term Loan Commitment evidenced by the Term Notes.
"Term Loan Commitment" shall mean, collectively, the Initial Term Loan
--------------------
Commitment and in addition, on and after the Merger
-27-
Date, the Subsequent Term Loan Commitment.
"Term Notes" shall mean those certain term promissory notes issued on the
----------
Agreement Date in the aggregate original principal amount of $500,000,000, and
those certain term promissory notes issued on the Merger Date in favor of the
CRBC Lenders in the aggregate principal amount of the Subsequent Term Loan
Commitment, one issued to each of the Lenders by the Borrower, each one
substantially in the form of Exhibit K attached hereto, and any extensions,
---------
renewals or amendments to any of the foregoing.
"Top-50 Market" shall mean one of the top fifty (50) radio markets in the
-------------
United States as determined by Arbitron or Xxxxxx'x Radio Market Guide from time
to time.
"Total Debt" shall mean (without duplication) all Indebtedness for Money
----------
Borrowed of the Parent Company and its Subsidiaries (other than Indebtedness for
Money Borrowed of any Unrestricted Subsidiary which is without recourse to the
Parent Company (and for purposes hereof, the obligation of the Parent Company to
issue its common equity securities under a certain Letter Agreement dated as
April 9, 1997 in favor of the Managing Agents, in connection with the financing
of the Gannett Transaction, shall be deemed to be without recourse), the
Borrower, or any Subsidiary of the Borrower), including the Borrower.
"Total Leverage Covenant" shall mean the maximum Total Leverage Ratio for
-----------------------
the period permitted under Section 7.8 hereof.
"Total Leverage Ratio" shall mean as of the last day of any fiscal quarter,
--------------------
the ratio of (a) Total Debt (less any amount in a Net Proceeds Trust (if and to
the extent that the Administrative Agent has a valid first priority Lien in the
funds on deposit in the Net Proceeds Trust) or "qualified escrow account" as
contemplated by Section 2.7(a) hereof) to (b) the sum of (i) Operating Cash Flow
and (ii) without duplication, the operating cash flow of the Parent Company
(excluding any Operating Cash Flow from any Unrestricted Subsidiary), each for
the twelve (12) month period then ended; provided, however, solely for purposes
-------- -------
of determining compliance with Section 7.8 hereof and determining the Applicable
Margins pursuant to Section 2.3(f) hereof, (i) during the Adjustment Period, if
the Borrower's Total Leverage Ratio is otherwise not less than 7.00 to 1.00 or
greater than 7.50 to 1.00 at such time, the Borrower may deduct from clause (a)
above the amount of the Net Cash Proceeds expected to be received by the
Borrower or any Subsidiary of the Borrower under any Binding Sale Agreement upon
the consummation of the
-28-
sale set forth therein, and (ii) prior to the Merger Date, and without
duplication of any amounts deducted pursuant to clause (i) of this proviso, the
Borrower may deduct from clause (a) above up to $34,000,000 in cash down
payments held in escrow accounts with respect to Required Divestitures for Radio
Properties currently pending sale pursuant to a Binding Sale Agreement.
"Uniform Customs" shall mean 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" shall mean any Subsidiary or Subsidiaries of the
-----------------------
Parent Company, other than the Borrower and its Subsidiaries, which has been
formed by the Parent Company to acquire one or more Stations and to hold the
associated FCC License or Licenses.
"Use of Proceeds Letter" shall mean that certain Use of Proceeds Letter,
----------------------
substantially in the form of Exhibit L attached hereto, to be delivered to the
---------
Administrative Agent and the Lenders on the Agreement Date pursuant to Section
3.1 hereof.
"Viacom Purchase" shall mean the purchase by the Borrower of certain radio
---------------
properties from Viacom International, Inc., pursuant to the Viacom Purchase
Agreement and the Joint Purchase Agreement.
"Viacom Purchase Agreement" shall mean that certain Stock Purchase
-------------------------
Agreement dated as of February 16, 1997, by and among the Borrower and Viacom
International, Inc., a Delaware corporation.
"Viacom Subordinated Indebtedness" shall have the meaning set forth in the
--------------------------------
definition of "Adjustment Trigger Date" contained in Article 1 hereof.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Each definition of an agreement or instrument in this Article 1 shall
include such agreement or instrument as amended from time to time with the prior
written consent of the Required Lenders, or all of the Lenders, as the case may
be, and the Borrower, and except where the context otherwise requires,
definitions imparting the singular shall include the plural and vice versa.
-29-
Except where otherwise specifically restricted, reference to a party to a
Loan Document includes that party and its successors and assigns. All terms
herein which are defined in Article 9 of the Uniform Commercial Code in effect
in the State of New York on the date hereof and which are not otherwise defined
herein shall have the meanings herein as set forth therein.
Unless otherwise expressly stated herein, all references to financial
information and results of the Borrower shall be determined on a consolidated
basis with the Borrower's Subsidiaries.
ARTICLE 2
Loans
-----
Section 2.1 The Loans and Letters of Credit.
-------------------------------
(a) The Lenders agree, severally in accordance with their respective
Commitment Ratios and not jointly, upon the terms and subject to the conditions
of this Agreement, to lend to the Borrower, on the Agreement Date, an amount not
to exceed, in the aggregate (together with all amounts previously outstanding
under the Term Loan Commitment (as defined in the Prior Loan Agreement) under
the Prior Loan Agreement), the Initial Term Loan Commitment. Upon the agreement
of the CRBC Lenders, the Borrower shall be entitled to receive from the CRBC
Lenders, on the Merger Date, an additional amount not to exceed, in the
aggregate, the Subsequent Term Loan Commitment. After the Agreement Date,
Advances under the Term Loan Commitment may be rolled over as provided in
Section 2.2(b) hereof and Section 2.2(c) hereof so as to effect changes in the
Interest Rate Bases applicable to Advances under the Term Loan; provided,
however, that there shall be no increase after the Agreement Date in the total
principal amount of the Term Loan outstanding (other than in connection with any
advance made on the Merger Date under the Subsequent Term Loan Commitment).
After the Merger Date, all payments made in connection with the Term Loan
hereunder shall be applied to reduce amounts outstanding under the Initial Term
Loan Commitment and the Subsequent Term Loan Commitment, on a pro rata basis.
(b) The Lenders further agree, severally in accordance with their
respective Commitment Ratios and not jointly, upon the terms and subject to the
conditions of this Agreement, to lend and relend to the Borrower from time to
time amounts which do not exceed in the aggregate at any one time outstanding
the Revolving Loan Commitment as in effect from time to time. Upon the agreement
of the CRBC Lenders, the Borrower shall be entitled to
-30-
receive from the CRBC Lenders, on and after the Merger Date, the Additional
Revolving Loan Commitment. After the Merger Date, all payments made in
connection with the Revolving Loan Commitment shall be applied to reduce amounts
outstanding under the Revolving Loan Commitment, as increased by the Additional
Revolving Loan Commitment. Advances under the Revolving Loan Commitment may be
rolled over as provided in Section 2.2(b) hereof and Section 2.2(c) hereof.
(c) The Borrower may also borrow up to $250 million (in increments
of $10,000,000, provided that the minimum amount of such Indebtedness incurred
at any single time is $50,000,000) of Additional Facility Indebtedness from some
or all of the Lenders or any other financial institutions who choose to issue
commitments therefor, subject to the following: (i) all terms and conditions of
the Additional Facility Indebtedness shall be no more restrictive than those
contained herein; (ii) the Additional Facility Indebtedness shall constitute
Obligations hereunder and shall rank pari passu with the other Obligations; and
---- -----
(iii) at the time of incurrence of the Additional Facility Indebtedness, the
Borrower shall have delivered to the Lenders updated financial projections
(prepared in good faith and using assumptions reasonable under the
circumstances) demonstrating that, both before and after giving effect to the
incurrence of the Additional Facility Indebtedness, compliance with all
financial covenants under this Agreement is maintained from the date of such
projections through the Maturity Date shall certify as to its full compliance
with this Agreement.
(d) Subject to the terms and conditions hereof, the Issuing Bank
agrees in accordance with the Letter of Credit Commitment to issue Letters of
Credit for the account of the Borrower pursuant to Section 2.14 hereof in an
aggregate outstanding face amount not to exceed the Letter of Credit Commitment
at any time.
Section 2.2 Manner of Borrowing and Disbursement.
------------------------------------
(a) Choice of Interest Rate, Etc. Any Advance shall, at the option
----------------------------
of the Borrower, be made as a Prime Rate Advance or a Eurodollar Advance;
provided, however, (i) that at such time as there shall have occurred and be
continuing a Default, the Borrower shall not have the right to borrow or convert
or roll over any Eurodollar Advances and all subsequent Advances shall be made
as Prime Rate Advances, and (ii) the Borrower may not select a Eurodollar
Advance with respect to any Advance, the proceeds of which are to reimburse an
Issuing Bank pursuant to Section 2.14 hereof. Eurodollar Advances shall in all
cases be subject to Section 2.3(e) and Article 10 hereof. Any notice given to
the Administrative Agent in connection with a requested Advance
-31-
hereunder shall be given to the Administrative Agent prior to 11:00 a.m.
(Houston time) in order for such Business Day to count toward the minimum number
of Business Days required.
(b) Prime Rate Advances.
-------------------
(i) Initial Advances. The Borrower shall give the
----------------
Administrative Agent in the case of Prime Rate Advances at least one (1)
Business Day's irrevocable prior written notice in the form of a Request
for Advance, or telephonic notice followed immediately by a Request for
Advance; provided, however, that the Borrower's failure to confirm any
telephonic notice with a Request for Advance shall not invalidate any
notice so given.
(ii) Rollovers. Upon at least three (3) Business Days'
---------
irrevocable prior written notice and subject to the provisions of Section
2.3(e) hereof, the Borrower may designate all or a portion (meeting the
minimum Advance amount requirement) of the principal amount of any
outstanding Prime Rate Advance as one or more Eurodollar Advances.
(c) Eurodollar Advances.
-------------------
(i) Initial Advances. The Borrower shall give the
----------------
Administrative Agent in the case of Eurodollar Advances at least three (3)
Business Days' irrevocable prior written notice in the form of a Request
for Advance, or telephonic notice followed immediately by a Request for
Advance; provided, however, that the Borrower's failure to confirm any
telephonic notice with a Request for Advance shall not invalidate any
notice so given. The Administrative Agent, whose determination shall be
conclusive, shall determine the available Eurodollar Bases and shall notify
the Borrower of such Eurodollar Bases. The Borrower shall promptly notify
the Administrative Agent by telephone or telecopy, and shall immediately
confirm any such telephonic notice in writing, of its selection of a
Eurodollar Basis and Interest Period for such Advance; provided, however,
that the Borrower's failure to confirm any such telephonic notice in
writing shall not invalidate any notice so given.
(ii) Rollovers. At least three (3) Business Days prior to each
---------
Payment Date for a Eurodollar Advance, the Borrower shall give the
Administrative Agent irrevocable prior written notice specifying whether
all or a portion of any Eurodollar Advance outstanding on the Payment Date
(A) is to be rolled over in whole or in part as another
-32-
Eurodollar Advance, (B) is to be designated to be a Prime Rate Advance, or
(C) is to be repaid and not reborrowed.
(d) Notification of Lenders. Upon receipt of a (i) Request for
-----------------------
Advance, (ii) notification from any Issuing Bank that a draw has been made under
any Letter of Credit, or (iii) a notice from the Borrower with respect to any
outstanding Advance prior to the Payment Date for such Advance, the
Administrative Agent shall promptly (that is on the same Business Day with
respect to any Request for Advance or any such notice received prior to 4:00
p.m. (Houston time)) notify each Lender by telephone or telecopy of the contents
thereof and the amount of such Lender's portion of the applicable Advance. Each
Lender shall, not later than 1:00 p.m. (Houston time) on the date of borrowing
specified in such notice, make available to the Administrative Agent at the
Administrative Agent's Office, or at such account as the Administrative Agent
shall designate, the amount of its portion of any Advance which represents an
additional borrowing hereunder in immediately available funds.
(e) Disbursement.
------------
(i) Prior to 1:00 p.m. (Houston time) on the date of an Advance
hereunder, the Administrative Agent shall, subject to the satisfaction of
the conditions set forth in Article 3 hereof, disburse the amounts made
available to the Administrative Agent by the Lenders in like funds by (A)
transferring the amounts so made available by wire transfer pursuant to the
Borrower's instructions, or (B) in the absence of such instructions,
crediting the amounts so made available to the account of the Borrower
maintained with the Administrative Agent (or any of its Affiliates).
(ii) Unless the Administrative Agent shall have received notice
from a Lender prior to 12:00 noon (Houston time) on the date of any Advance
that such Lender will not make available to the Administrative Agent such
Lender's ratable portion of such Advance, the Administrative Agent may
assume that such Lender has made or will make such portion available to the
Administrative Agent on the date of such Advance and the Administrative
Agent may in its sole discretion and in reliance upon such assumption, make
available to the Borrower on such date a corresponding amount. If and to
the extent such Lender shall not have so made such ratable portion
available to the Administrative Agent, such Lender agrees to repay to the
Administrative Agent forthwith on demand such corresponding amount together
with interest thereon, for each day from the date such amount is made
available to the Borrower until the date such
-33-
amount is repaid to the Administrative Agent, at the Federal Funds Rate
plus, if such amount is not paid to the Administrative Agent within three
(3) days of such demand, one percent (1%).
(iii) If such Lender shall repay to the Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Lender's
portion of the applicable Advance for purposes of this Agreement. If such
Lender does not repay such corresponding amount immediately upon the
Administrative Agent's demand therefor, the Administrative Agent shall
notify the Borrower and the Borrower shall immediately pay such
corresponding amount to the Administrative Agent. The failure of any Lender
to fund its portion of any Advance shall not relieve any other Lender of
its obligation, if any, hereunder to fund its respective portion of such
Advance on the date of such borrowing, but no Lender shall be responsible
for any such failure of any other Lender.
(iv) In the event that, at any time when the conditions precedent for
any Advance have been satisfied, a Lender for any reason fails or refuses
to fund its portion of an Advance, then, until such time as such Lender has
funded its portion of such Advance, or all other Lenders have received
payment in full (whether by repayment or prepayment) of the principal and
interest due in respect of such Advance, such non-funding Lender shall not
have the right to (A) vote regarding any issue on which voting is required
or advisable under this Agreement or any other Loan Document and the amount
of the Loans of such Lender shall not be counted as outstanding for
purposes of determining "Required Lenders" hereunder, or (B) receive
payments of principal, interest or fees from the Borrower in respect of its
portion of such Advance not funded.
Section 2.3 Interest.
--------
(a) On Prime Rate Advances. Interest on each Prime Rate Advance shall
----------------------
be computed on the basis of a year of 365/366 days for the actual number of days
elapsed and shall be payable at the Prime Rate Basis for such Advance, in
arrears on the applicable Payment Date for the period through the date
immediately preceding such Payment Date. Interest on Prime Rate Advances then
outstanding shall also be due and payable on the Maturity Date.
-34-
(b) On Eurodollar Advances. Interest on each Eurodollar Advance shall
----------------------
be computed on the basis of a 360-day year for the actual number of days elapsed
and shall be payable at the Eurodollar Basis for such Advance, in arrears on the
applicable Payment Date for the period through the date immediately preceding
such Payment Date, and, in addition, if the Interest Period for a Eurodollar
Advance exceeds three (3) months, interest on such Eurodollar Advance shall also
be due and payable in arrears on each three-month anniversary of the beginning
of such Interest Period. Interest on Eurodollar Advances then outstanding shall
also be due and payable on the Maturity Date.
(c) Interest if no Notice of Selection of Interest Rate Basis. If the
---------------------------------------------------------
Borrower fails to give the Administrative Agent timely notice of its selection
of a Eurodollar Basis, or if for any reason a determination of a Eurodollar
Basis for any Advance is not timely concluded, the Prime Rate Basis shall apply
to such Advance.
(d) Interest Upon Default. Immediately upon the occurrence of an
---------------------
Event of Default under any of subsections (b), (f), or (g) of Section 8.1
hereof, the outstanding principal balance of the Loans shall bear interest at
the Default Rate. In addition, upon the occurrence of any other Event of
Default, and upon the request of the Required Lenders, the Lenders shall upon
notice to the Borrower charge the Borrower interest on the outstanding principal
balance of the Loans at the Default Rate from the date of such Event of Default.
Such interest shall be payable on demand, and shall accrue until the earlier of
(i) waiver or cure (to the satisfaction of such Lenders as may be required under
Section 11.12 hereof) of the applicable Event of Default, (ii) agreement of the
Required Lenders to rescind the charging of interest at the Default Rate, or
(iii) payment in full of the Obligations. The Administrative Agent will promptly
notify the Borrower, after the effective date, of any decision by the Required
Lenders to charge interest at the Default Rate.
(e) Eurodollar Contracts. At no time may the sum of the number of
--------------------
outstanding Eurodollar Advances exceed fifteen (15); nor may the Borrower borrow
more than thirty (30) Eurodollar Advances in any fiscal year.
(f) Applicable Margin. With respect to any Advance under the
-----------------
Commitments, the Applicable Margin shall be determined by the Administrative
Agent based upon the Total Leverage Ratio for the most recent fiscal quarter end
for which the financial statements referred to in Section 6.1 hereof required to
be furnished by the Borrower to the Administrative Agent and each
-35-
Lender have been so furnished, which Applicable Margin shall be effective as of
the second Business Day after the delivery of such financial statements,
expressed as a per annum rate of interest as follows (except that, from the date
hereof through the second Business Day after the date on which the initial set
of financial statements referred to in Section 6.1 hereof are delivered to the
Administrative Agent, based on the Borrower's calculation on the Agreement Date
of what the Total Leverage Ratio would be on such date, after giving effect to
the initial Advance of the Loans hereunder, the Applicable Margin with respect
to any Prime Rate Advance shall be one-eighth of one percent (0.125%) and the
Applicable Margin with respect to any Eurodollar Advance shall be one and one-
eighth of one percent (1.125%), based on a theoretical Total Leverage Ratio of
Total Debt as of the Agreement Date to the sum of (i) Operating Cash Flow for
the four-quarter period ended March 31, 1997, and (ii) without duplication, the
Operating Cash Flow of the Parent Company for such period, in either case,
expressed as a per annum rate of interest):
Prime Rate Advance Eurodollar Advance
Leverage Ratio Applicable Margin Applicable Margin
-------------- ------------------- -------------------
Greater than 6.75 1.000% 2.000%
Greater than 6.50 but
less than or equal to 6.75 0.750% 1.750%
Greater than 6.00 but
less than or equal to 6.50 0.375% 1.375%
Greater than 5.50 but
less than or equal to 6.00 0.125% 1.125%
Greater than 5.00 but
less than or equal to 5.50 0.000% 0.875%
Greater than 4.50 but
less than or equal to 5.00 0.000% 0.625%
Greater than 4.00 but
less than or equal to 4.50 0.000% 0.500%
Less than or equal to 4.00 0.000% 0.400%
In the event that Borrower fails to timely provide the financial statements
referred to above in accordance with the terms of Section 6.1 hereof, and
without prejudice to any additional
-36-
rights under Section 8.2 hereof, no downward adjustment of the Applicable Margin
in effect for the preceding quarter shall occur until the actual delivery of
such statements. Notwithstanding the foregoing, however, if the Total Leverage
Ratio is equal to or greater than 7.00 to 1.00 during the Adjustment Period, the
Applicable Margin with respect to any Prime Rate Advance shall be 1.250% and the
Applicable Margin with respect to any Eurodollar Advance shall be 2.250%.
Section 2.4 Commitment Reduction and Repayment.
----------------------------------
(a) Revolving Loan. Commencing September 30, 2000 and at the end of
--------------
each fiscal quarter thereafter, the Revolving Loan Commitment as of June 30,
2000 shall be reduced by an amount equal to the percentages (for such quarter
and year) set forth below and to the extent that the principal amount of the
Revolving Loans exceeds the Revolving Loan Commitment as so reduced, the
Revolving Loans shall be repaid:
Percentage of Annual Percentage of
Revolving Loan Revolving Loan Commitment to
Commitment to be be Reduced Each Four-Quarter
Reduced Each Period Ending
Period Quarter June 30
------ ---------------- ----------------------------
From September 30, 2000 3.75% 15.00%
through and including
June 30, 2001
From September 30, 2001 5.00% 20.00%
through and including
June 30, 2002
From September 30, 2002 5.00% 20.00%
through and including
June 30, 2003
From September 30, 2003 5.00% 20.00%
through and including
June 30, 2004
From September 30, 2004 6.25% 25.00%
through and including
June 30, 2005
The Borrower shall make a repayment of the Revolving Loans outstanding, together
with accrued interest thereon, on or before the effective date of each reduction
in the Revolving Loan Commitment under this Section 2.4(a), such that the
aggregate principal amount of the Revolving Loans outstanding at no time exceeds
the Revolving Loan Commitment as so reduced. In the
-37-
event that the Borrower makes any voluntary Revolving Loan Commitment
reductions, the reduction percentages provided for in this Section 2.4(a) shall
not be affected, and the Borrower's obligation to make further reductions and,
to the extent necessary, repayments pursuant to this Section 2.4(a) shall be
based on the Revolving Loan Commitment as reduced. A final payment of all
principal amounts of the Revolving Loans then outstanding shall be due and
payable in full on the Maturity Date.
(b) Term Loan. Commencing on September 30, 2000 and at the end of
---------
each fiscal quarter thereafter, the principal balance of the Term Loan
outstanding on June 30, 2000, shall be reduced by an amount equal to the
percentages (for such quarter and year) of the Term Loan outstanding as of such
date as set forth below until the Term Loan is paid in full, as follows:
Percentage of Term Annual Percentage of Term
Loan Outstanding on Loan Outstanding on June
June 30, 2000 to be 30, 2000 to be Reduced
Reduced Each Each Four-Quarter Period
Period Quarter Ending June 30
----------------- ------------------- ------------------------
From September 30, 2000 3.75% 15.00%
through and including
June 30, 2001
From September 30, 2001 5.00% 20.00%
through and including
June 30, 2002
From September 30, 2002 5.00% 20.00%
through and including
June 30, 2003
From September 30, 2003 5.00% 20.00%
through and including
June 30, 2004
From September 30, 2004 6.25% 25.00%
through and including
June 30, 2005
The Borrower shall make a repayment of the Term Loans outstanding, together with
accrued interest thereon, on or before the effective date of each reduction in
the Term Loan under this Section 2.4(b), such that the aggregate principal
amount of the Term Loans outstanding at no time exceeds the Term Loan Commitment
as so reduced. In the event that the Borrower makes any Term Loan prepayment
(mandatory or optional), the reduction percentages provided for in this Section
2.4(b) shall not be
-38-
affected and the Borrower's obligation to make further repayments or prepayments
pursuant to this Section 2.4(b) shall be based on the Term Loan Commitment as
reduced. A final payment of all principal amounts of the Term Loan then
outstanding shall be due and payable in full on the Maturity Date.
Section 2.5 Fees. (a) Fees Payable Under the Fee Letters. The Borrower
---- ----------------------------------
agrees to pay to the Administrative Agent, for the benefit of itself, the
Arranging Agent, the Managing Agents, and each of the Lenders, such facility
fees and other fees as are mutually agreed upon and as are described in the Fee
Letters. Such facility fees shall be fully earned when due and non-refundable
when paid.
(b) Commitment Fee. In addition, the Borrower agrees to pay to the
--------------
Administrative Agent, for the benefit of each of the Lenders in accordance with
their respective Commitment Ratios, a commitment fee on the aggregate unused
amount of the Available Revolving Loan Commitment determined by the
Administrative Agent based upon the Total Leverage Ratio for the most recent
fiscal quarter end for which the financial statements referred to in Section 6.1
hereof required to be furnished by the Borrower to the Administrative Agent and
each Lender have been so furnished, which commitment fee shall be effective as
of the second Business Day after the delivery of such financial statements,
expressed as a per annum rate of interest as follows (except that, from the date
hereof through the second Business Day after the date on which the initial set
of financial statements referred to in Section 6.1 hereof are delivered to the
Administrative Agent, based on the Borrower's calculation on the Agreement Date
of what the Total Leverage Ratio would be on such date, after giving effect to
the initial Advance of the Loans hereunder, the commitment fee shall be three-
eighths of one percent (0.375%) based on a theoretical Total Leverage Ratio of
Total Debt as of the Agreement Date to the sum of (i) Operating Cash Flow for
the four-quarter period ended March 31, 1997, and (ii) without duplication, the
Operating Cash Flow of the Parent Company for such period expressed as a per
annum rate of interest):
Total Leverage Ratio Commitment Fee
-------------------- --------------
Greater than or equal 0.375%
to 5.50
Less than 5.50 0.250%
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In the event that the Borrower fails to timely provide the financial statements
referred to above in accordance with the terms of Section 6.1 hereof, and
without prejudice to any additional rights under Section 8.2 hereof, no downward
adjustment of such commitment fee in effect for the preceding quarter shall
occur until the actual delivery of such statements. Such commitment fee shall
be computed on the basis of a year of 360 days, shall be payable quarterly in
arrears on the last day of each fiscal quarter, commencing on June 30, 1997 and
on the Maturity Date, shall be fully earned when due, and shall be non-
refundable when paid.
(c) Letter of Credit Fee. The Borrower shall pay to the Lenders, in
--------------------
accordance with the Lenders respective Commitment Ratios, a fee on the stated
amount of any outstanding Letters of Credit for each day from the Date of Issue
through the Maturity Date (or the date of any earlier prepayment in full of the
Obligations) at a rate per annum on the amount of the Letter of Credit
Obligations equal to the Applicable Margin for Eurodollar Advances. Such Letter
of Credit fee shall be computed on the basis of a hypothetical year of 365/366
days for the actual number of days elapsed, shall be payable quarterly in
arrears on the last day of each fiscal quarter, commencing on June 30, 1997, and
if then unpaid, on the Maturity Date (or the date of any earlier prepayment in
full of the Obligations), and shall be fully earned when due and non-refundable
when paid.
(c) Issuing Bank Fee. The Borrower shall pay to the Issuing Bank a
----------------
fee in the amount of $2,000 for issuing, amending and renewing any Letter of
Credit, which fee shall be due and payable on the date of each issuance,
amendment or renewal of any Letter of Credit. Such fee shall be fully earned
when due, and non-refundable when paid.
Section 2.6 Optional Prepayments and Reductions.
-----------------------------------
(a) Advances. The principal amount of any Prime Rate Advance may be
--------
prepaid in full or in part (provided that any such partial prepayment shall be
in a principal amount of at least $2,000,000 and in an integral multiple of
$1,000,000) at any time, without penalty or premium and without regard to the
Payment Date for such Advance, upon three (3) Business Days' prior written
notice to the Administrative Agent of such prepayment. Eurodollar Advances may
be prepaid prior to the applicable Payment Date, upon three (3) Business Days'
prior written notice to the Administrative Agent, provided that the Borrower
shall reimburse the Lenders and the Administrative Agent, on demand, for any
loss or out-of-pocket expense incurred by the Lenders or the Administrative
Agent in connection with
-40-
such prepayment, as set forth in Section 2.10 hereof.
(b) Loans and Commitments Generally. The Borrower may without penalty
-------------------------------
at any time terminate or permanently reduce the Revolving Loan Commitment or the
Term Loan Commitment by giving the Administrative Agent and the Lenders at least
five (5) Business Days' prior written notice thereof; provided, however, that
any reduction shall reduce the affected Commitment in a principal amount of at
least $2,000,000 and in an integral multiple of $1,000,000. The Borrower shall
also make any required repayment or prepayment of the Loans outstanding under
the Commitment being so terminated or reduced, plus accrued interest on such
outstanding Loans, on or before the effective date of the reduction or
termination of the affected Commitment, so that the principal amount of Loans
outstanding under such affected Commitment does not exceed the amount of the
affected Commitment as so reduced. The Borrower shall not have any right to
rescind any notice of termination or reduction pursuant to this Section 2.6(b).
Upon receipt of any notice of prepayment or reduction, the Administrative Agent
shall promptly notify each Lender by telephone or telecopy of the contents
thereof and of such Lender's portion of the anticipated prepayment.
Section 2.7 Mandatory Prepayments. In addition to the scheduled
---------------------
repayments provided for in Section 2.4 hereof, the Borrower shall prepay the
Loans as follows:
(a) Repayment from Asset Sales. The Net Proceeds from any Permitted
--------------------------
Asset Sale shall, on the date of receipt by the Borrower, be applied in any of
the following respects, at the Borrower's election (provided, however, that such
-------- -------
election shall be subject to the terms and conditions set forth below for each
election; and provided further, however, that all Net Proceeds from any Required
-------- -------
Divestiture made during the Adjustment Period shall be applied only to the
Obligations as set forth in "First" below): First, to the Obligations, and with
-----
respect to the Loans any such payment to be applied, at the election of the
Borrower, to the Term Loan or the Revolving Loans or any combination thereof,
and that in the case of repayment of the Revolving Loans, no permanent reduction
of the Revolving Loan Commitment shall be required. Second, at the Borrower's
------
election, in lieu of applying such Net Proceeds to the Obligations as set forth
in "First" above, so long as no Default then exists or would be caused thereby,
to make one or more Acquisitions, the aggregate purchase price of which does not
exceed the sum of such Net Proceeds plus the unused and available portion of the
Revolving Loan Commitment available for Acquisitions hereunder plus other funds
available to the Borrower, so long as the Borrower or one of its Subsidiaries
shall have (i) entered into a definitive
-41-
contract for such purchase within twelve (12) months from the date of such
Permitted Asset Sale and (ii) concluded such purchase within eighteen (18)
months from the date of such Permitted Asset Sale. In the event the Borrower
elects to exercise its right to use such Net Proceeds to make an Acquisition,
the Borrower shall so notify the Administrative Agent not less than five (5)
Business Days prior to the proposed date of the closing of such Permitted Asset
Sale and shall, upon its or any Subsidiary's receipt of any Net Proceeds with
respect to such Permitted Asset Sale, remit such Net Proceeds which would have
been applied to the repayment of the Loans to the Administrative Agent. The
amount so remitted shall be held in trust in an interest-bearing account with
the Administrative Agent or an Affiliate thereof (the "Net Proceeds Trust") for
the benefit of the Borrower, to be applied to such Acquisition, as hereinafter
provided. The Borrower hereby grants the Collateral Agent a security interest in
the Net Proceeds Trust to secure the Obligations. The Borrower or one of its
Subsidiaries shall consummate such Acquisition not later than eighteen (18)
months after the date of the applicable Permitted Asset Sale. In lieu of
applying the proceeds from the Permitted Asset Sale as set forth in "Second"
------
above, so long as no Default then exists or would be caused thereby, the
Borrower may elect to structure the disposition of any of the assets of the
Borrower or any of its Subsidiaries (such assets, the "Relinquished Property")
as a deferred exchange of like-kind property under Section 1031 of the Code. In
the event the Borrower so elects, it shall (or shall cause the involved
Subsidiary to) (a) notify the Administrative Agent not less than twenty (20)
Business Days prior to the transfer or other disposition of the assets for which
nonrecognition treatment is sought under Section 1031, (b) together with a
"qualified intermediary" within the meaning of Treas. Reg. (S) 1.1031(k)-1(g)(4)
(the "Qualified Intermediary"), open a "qualified escrow account" within the
meaning of Treas. Reg. (S) 1.1031(k)-1(g)(3) and enter into an "exchange
agreement" within the meaning of Treas. Reg. (S) 1.1031(k)-1(g)(4)(iii)(B)
(under which account and agreement the Qualified Intermediary for federal income
tax purposes acquires the Relinquished Property from the Borrower or one of its
Subsidiaries and conveys it to the purchaser thereof and acquires with the
proceeds of the transfer or other disposition of the Relinquished Property or
replacement property which, in whole or in part, constitutes like-kind property,
and conveys such property to the Borrower or one of its Subsidiaries) and (c)
deliver to the Administrative Agent, not less than ten (10) Business Days prior
to the closing of the transfer or other disposition of the Relinquished Property
by the Borrower or one of its Subsidiaries, a collateral assignment of the
rights of the Borrower or one of its Subsidiaries under the "qualified escrow
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account" to any proceeds thereof, as well as any proceeds of such proceeds, as
well as any other forms of collateral or additional Security Documents or such
other assurances as may be deemed necessary or desirable by the Administrative
Agent or the Lenders without jeopardizing the tax treatment sought. Upon receipt
of the collateral assignment executed by the Borrower or one of its
Subsidiaries, and in any event no later than immediately before the consummation
of the closing of the transfer or other disposition of the Relinquished
Property, the Administrative Agent shall release its Liens in the proceeds of
the "qualified escrow account" for the period necessary (but no longer than
necessary) to comply with the requirements of Treas. Reg. (S) 1.1031(k)-1(g)(6).
The Administrative Agent shall have the right to consult with Borrower's tax
professionals in connection with any proposed deferred exchange of like-kind
property under Section 1031 of the Code. (The terms of the "qualified escrow
account" and "exchange agreement" shall provide that immediately upon the
occurrence of any event set forth in Treas. Reg. (S) 1.1031(k)-1(g)(6)(ii) or
(iii), the proceeds from the transfer or other disposition of the Relinquished
Property, together with any interest thereon, shall be released to the
Administrative Agent, to the extent of any then outstanding Loans hereunder, to
be applied in the manner set forth in Section 2.7(c) hereof.) Third, and to the
-----
extent that (A) the Borrower does not elect to make an Acquisition or deferred
like-kind exchange as provided above, or (B) the Borrower or one of its
Subsidiaries shall not have otherwise consummated any Acquisition as of eighteen
(18) months after the date of the Permitted Asset Sale (for whatever reason,
including the occurrence of a Default), or the purchase price of such
Acquisition shall be less than the Net Proceeds therefrom, any funds either held
in the Net Proceeds Trust relating to the Permitted Asset Sale or not used for
an Acquisition or "like-kind" exchange shall be applied in the manner set forth
in Section 2.7(c).
(b) Repayment from Issuance of Subordinated Indebtedness by Parent
--------------------------------------------------------------
Company or Borrower. Fifty percent (50%) of the Net Proceeds of any Subordinated
-------------------
Indebtedness (other than (i) Viacom Subordinated Indebtedness and (ii)
Subordinated Indebtedness issued solely to refinance the CRBC Subordinated
Indebtedness and which does not increase the principal amount thereof) issued by
the Parent Company or Borrower shall, on the date of receipt by the Parent
Company or Borrower be applied to the Obligations, and with respect to the
Loans, such payment shall be applied, at the election of the Borrower, to the
Term Loan or the Revolving Loan or any combination thereof, and that in the case
of repayment of the Revolving Loans, no permanent reduction of the Revolving
Loan Commitment shall be required.
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(c) Application of Payments. Except as otherwise provided, any
-----------------------
repayment of the Loans pursuant to this Section 2.7 shall be applied at the
election of the Borrower to the Term Loan or the Revolving Loan or any
combination thereof, and to the extent applied to the Term Loan, to the
scheduled principal payments due in respect of the Term Loan (as set forth in
Section 2.4(b) hereof but in inverse order of maturity). Accrued interest on the
principal amount of the Loans being repaid pursuant to any subsection of Section
2.7 hereof, to the date of such repayment, will be paid by the Borrower
concurrently with such principal repayment.
Section 2.8 Notes; Loan Accounts.
--------------------
(a) The Loans shall be repayable in accordance with the terms and
provisions set forth herein, and shall be evidenced by the Notes. On the
Agreement Date, one Term Note and one Revolving Note shall be payable to the
order of each Lender in accordance with the respective Commitment Ratios of the
Lenders. Additionally, on the Merger Date, the Borrower shall execute and
deliver to each CRBC Lender promissory notes in the amount of such CRBC Lenders
pro rata share of the Additional Revolving Loan Commitment and the Subsequent
Term Loan Commitment, respectively. The Notes shall be issued by the Borrower
to the Lenders and shall be duly executed and delivered by one or more
Authorized Signatories.
(b) Each Lender may open and maintain on its books in the name of the
Borrower a loan account with respect to the Loans and interest thereon. Each
Lender which opens such a loan account shall debit such loan account for the
principal amount of each Advance made by it and accrued interest thereon, and
shall credit such loan account for each payment on account of principal of or
interest on its Loans. The records of a Lender with respect to the loan account
maintained by it shall be prima facie evidence of the Loans and accrued interest
----- -----
thereon, but the failure of any Lender to make any such notations or any error
or mistake in such notations shall not affect the Borrower's repayment
obligations with respect to such Loans.
Section 2.9 Manner of Payment.
-----------------
(a) Each payment (including any prepayment) by the Borrower on
account of the principal of or interest on the Loans, commitment fees, facility
fees, Administrative Agent's fee, additional fees to the Lenders, and any other
amount owed to the Lenders or the Administrative Agent under this Agreement, the
Notes, or any other Loan Documents shall be made not later than 12:00 noon
(Houston time) on the date specified for payment under
-44-
this Agreement to the Administrative Agent at the Administrative Agent's Office,
for the account of the Lenders or the Administrative Agent, as the case may be,
in lawful money of the United States of America in immediately available funds.
Any payment received by the Administrative Agent after 12:00 noon (Houston time)
shall be deemed received on the next Business Day. Receipt by the Administrative
Agent of any payment intended for any Lender or Lenders hereunder at or prior to
12:00 noon (Houston time) on any Business Day shall be deemed to constitute
receipt by such Lender or Lenders on such Business Day. In the case of a payment
for the account of a Lender, the Administrative Agent will promptly thereafter
distribute the amount so received in like funds to such Lender. If the
Administrative Agent shall not have received any payment from the Borrower as
and when due, the Administrative Agent will promptly notify the Lenders
accordingly.
(b) The Borrower agrees to pay principal, interest, fees and all
other amounts due hereunder or under the Notes without set-off or counterclaim
or any deduction whatsoever.
(c) Prior to the declaration of an Event of Default under Section 8.2
hereof, if some but less than all amounts due from the Borrower are received by
the Administrative Agent with respect to the Obligations, the Administrative
Agent shall distribute such amounts in the following order of priority, all in
accordance where applicable with the Commitment Ratios: (i) to the payment of
the Administrative Agent's fees then due and payable; (ii) to the payment of all
other fees then due and payable; (iii) to the payment of interest then due and
payable on the Loans; (iv) to the payment of all other amounts not otherwise
referred to in this Section 2.9(c) then due and payable to the Administrative
Agent, the Issuing Bank, or the Lenders hereunder or under the Notes; (v) to the
payment of principal then due and payable on the Loans; and (vi) to the extent
of any Letter of Credit Obligations then outstanding, to the Letter of Credit
Reserve Account. Upon the declaration of an Event of Default under Section 8.2
hereof, all amounts received from any source whatsoever by the Administrative
Agent or any of the Lenders with respect to the Borrower or any of its
Subsidiaries shall be distributed as set forth in Section 8.3 of this Agreement.
-45-
Section 2.10 Reimbursement.
-------------
(a) Whenever any Lender shall sustain or incur any losses or
reasonable out-of-pocket expenses in connection with (i) failure by the Borrower
to borrow, convert, or roll over any Eurodollar Advance after having given
notice of its intention to borrow, convert, or roll over in accordance with
Section 2.2 hereof (whether by reason of the Borrower's election not to proceed
or the non-fulfillment of any of the conditions set forth in Article 3 hereof),
or (ii) prepayment of any Eurodollar Advance in whole or in part for any reason,
the Borrower agrees to pay to such Lender, upon the earlier of such Lender's
demand or the Maturity Date, an amount sufficient to compensate such Lender for
all such losses and reasonable out-of-pocket expenses. Such Lender's good faith
determination of the amount of such losses or out-of-pocket expenses, absent
manifest error, shall be binding and conclusive. Upon request of the Borrower,
any Lender seeking reimbursement under this Section 2.10 shall provide a
certificate setting forth the amount to be paid to it by the Borrower hereunder
and calculations therefor.
(b) Losses subject to reimbursement hereunder shall include, without
limiting the generality of the foregoing, expenses incurred by any Lender or any
participant of such Lender permitted hereunder in connection with the re-
employment of funds prepaid, repaid, not borrowed or reborrowed, or paid, as the
case may be, and such calculations shall assume that the Borrower is entitled to
the then-prevailing Applicable Margin under Section 2.3(f) hereof during such
Interest Period.
Section 2.11 Pro-Rata Treatment.
------------------
(a) Each Advance from the Lenders under this Agreement shall be made
pro rata on the basis of the respective Commitment Ratios of the Lenders with
--- ----
respect to the Term Loan Commitment and the Revolving Loan Commitment .
(b) Each payment and prepayment of principal of the Loans, and,
except as provided in Article 10 hereof, each payment of interest on the Loans,
shall be made to the Lenders pro-rata on the basis of their respective unpaid
--------
principal amounts outstanding immediately prior to such payment or prepayment.
If any Lender shall obtain any payment (whether voluntary or involuntary,
through the exercise of any right of set-off, or otherwise, except for any
payments received by such Lender in connection with any assignment of any Loan
in accordance with Section 11.5 hereof) on account of the Loans made by it in
excess of its ratable share of the Loans based upon its Commitment Ratio, such
Lender shall forthwith purchase from the other
-46-
Lenders such participations in the Loans made by them as shall be necessary to
cause such purchasing Lender to share the excess payment ratably with each of
them; provided, however, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Lender, such purchase from each Lender
shall be rescinded and such Lender shall repay to the purchasing Lender the
purchase price to the extent of such recovery. The Borrower agrees that any
Lender so purchasing a participation from another Lender pursuant to this
Section 2.11(b) may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of the
Borrower in the amount of such participation.
Section 2.12 Capital Adequacy. If, after the date hereof, the adoption
----------------
of any Applicable Law regarding the capital adequacy of banks or bank holding
companies, or any change in Applicable Law or any change in the interpretation
or administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by such Lender with any directive regarding capital adequacy (whether
or not having the force of law) of any such governmental authority, central bank
or comparable agency, has or would have the effect of reducing the rate of
return on any Lender's capital as a consequence of its obligations hereunder
with respect to the unused portion of its Commitments to a level below that
which it could have achieved but for such adoption, change or compliance (taking
into consideration such Lender's policies with respect to capital adequacy
immediately before such adoption, change or compliance) by an amount deemed by
such Lender to be material, then, upon receipt of written demand by such Lender,
the Borrower shall promptly pay to such Lender such additional amounts as shall
be sufficient to compensate such Lender for such reduced return, together with
interest on such amount from the fourth (4th) day after the receipt of such
demand until payment in full thereof at the Prime Rate Basis; provided, however,
that no Lender shall be entitled to compensation under this Section 2.12 for any
costs incurred more than one year prior to the date that such Lender makes
written demand to the Borrower for such compensation. A certificate of such
Lender setting forth the amount to be paid to such Lender by the Borrower as a
result of any event referred to in this paragraph and demonstrating the basis
for and calculation of such determination shall, absent manifest error, be
conclusive. Each Lender agrees that if any amount or any portion of any amount
described in this Section 2.12 is subsequently recovered by such Lender, such
Lender shall promptly reimburse the Borrower to the extent of the amount so
recovered.
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Section 2.13 Lender Tax Forms. On or prior to the Agreement Date and
----------------
on or prior to the first Business Day of each fiscal year thereafter, each
Lender which is organized in a jurisdiction other than the United States shall
provide the Administrative Agent and the Borrower with two properly executed
original Forms 4224 and 1001 (or any successor forms) prescribed by the Internal
Revenue Service or other documents satisfactory to the Borrower and the
Administrative Agent, and properly executed Internal Revenue Service Forms W-8
or W-9, as the case may be, certifying that such Lender is exempt from United
States withholding tax with respect to payments to be made under this Agreement
and under any Note. Each such Lender agrees to provide the Administrative Agent
and the Borrower with new forms prescribed by the Internal Revenue Service upon
the expiration or obsolescence of any previously delivered form, or after the
occurrence of any event requiring a change in the most recent forms delivered by
it to the Administrative Agent and the Borrower. Notwithstanding anything to the
contrary in Section 2.9(b), the Borrower shall be entitled, to the extent it is
required to do so by law, to deduct or withhold taxes imposed by the United
States (or any political subdivision or taxing authority thereof or therein)
from interest, fees or other amounts payable hereunder or under any Note
(without any obligation to pay the respective Lender additional amounts with
respect thereto) for the account of any Lender which is not organized under the
laws of the United States and which has not provided to the Administrative Agent
and the Borrower the forms required by this Section 2.13. Notwithstanding the
previous sentence, the Borrower agrees to indemnify each Lender which is not
organized under the laws of the United States in respect of amounts deducted or
withheld by it as described in the previous sentence as a result of any changes
after the date hereof in any applicable law, treaty, governmental rule,
regulation, guideline or order, or in the interpretation thereof, relating to
the deducting or withholding of taxes.
Section 2.14 The Letters of Credit.
---------------------
(a) Subject to the terms and conditions hereof, the Issuing Bank, on
behalf of the Lenders, and in reliance on the agreements of the Lenders set
forth in Section 2.14(d) below, hereby agrees to issue one or more Letters of
Credit up to an aggregate face amount equal to the Letter of Credit Commitment;
provided, however, that the Issuing Bank shall not issue any Letter of Credit
-------- -------
unless the conditions precedent to the issuance thereof set forth in Section 3.3
hereof have been satisfied, and shall have no obligation to issue any Letter of
Credit if any Default then exists or would be caused thereby or if, after giving
effect to such issuance, the Available Revolving Loan
-48-
Commitment would be less than zero and; provided further, however, that at no
time shall the total Letter of Credit Obligations outstanding hereunder exceed
the Letter of Credit Commitment. Each Letter of Credit shall (1) be denominated
in U.S. dollars, and (2) expire no later than the earlier to occur of (A) the
Maturity Date, and (B) one year after its date of issuance (but may contain
provisions for automatic renewal provided that (except with respect to the
Initial Letters of Credit) no Default or Event of Default exists on the renewal
date or would be caused by such renewal). 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. The Issuing Bank shall not at any time be obligated to
issue, or cause to be issued, any Letter of Credit if such issuance would
conflict with, or cause the Issuing Bank to exceed any limits imposed by, any
Applicable Law.
(b) The Borrower may from time to time request that an Issuing Bank
issue a Letter of Credit. The Borrower shall execute and deliver to the
Administrative Agent and applicable Issuing Bank a Request for Issuance of
Letter of Credit for each Letter of Credit to be issued by such Issuing Bank,
not later than 11:00 a.m. (Houston time) on the third (3rd) Business Day
preceding the date on which the requested Letter of Credit is to be issued, or
such shorter notice as may be acceptable to the Issuing Bank and the
Administrative Agent. Upon receipt of any such Request for Issuance of Letter of
Credit, subject to satisfaction of all conditions precedent thereto as set forth
in Section 3.3 hereof, the Issuing Bank shall process such Request for Issuance
of Letter of Credit 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. The Issuing Bank shall furnish a copy of such Letter of Credit to the
Borrower and the Administrative Agent, and each of the Lenders following the
issuance thereof. The Borrower shall pay or reimburse the Issuing Bank for
normal and customary costs and expenses incurred by the Issuing Bank in issuing,
effecting payment under, amending or otherwise administering the Letters of
Credit.
(c) At such time as the Administrative Agent shall be notified by the
Issuing Bank that the beneficiary under any Letter of Credit has drawn on the
same, the Administrative Agent shall promptly notify the Borrower and each
Lender, by telephone or telecopy, of the amount of the draw and, in the case of
each Lender, such Lender's portion of such draw amount as calculated in
accordance with its Commitment Percentage.
-49-
(d) The Borrower hereby agrees to immediately reimburse an Issuing
Bank for amounts paid by such Issuing Bank in respect of draws under a Letter of
Credit. In order to facilitate such repayment, the Borrower hereby irrevocably
requests the Lenders, and the Lenders hereby severally agree, on the terms and
conditions of this Agreement (other than as provided in Article 2 hereof with
---------
respect to the amounts of, the timing of requests for, and the repayment of
Loans hereunder and in Article 3 hereof with respect to conditions precedent to
---------
Advances hereunder), with respect to any drawing under a Letter of Credit prior
to the occurrence of an event described in clauses (f) or (g) of Section 8.1
hereof, to make a Prime Rate Advance under the Revolving Loan Commitment to the
Borrower on each day on which a draw is made under any Letter of Credit and in
the amount of such draw, and to pay the proceeds of such Advance directly to the
Issuing Bank to reimburse the Issuing Bank for the amount paid by it upon such
draw and the Borrower shall deliver to the Administrative Agent a Request for
Advance requesting the making of such Prime Rate Advance on the day of any such
draw; provided, however, the failure of the Borrower to deliver a Request for
Advance shall not effect the validity of any Prime Rate Advance made hereunder.
Each Lender shall fund its share of such Prime Rate Advance by paying its
portion of such Advance to the Administrative Agent in accordance with Section
2.2(e) hereof and its Commitment Ratio, without reduction for any set-off or
counterclaim of any nature whatsoever and regardless of whether any Default or
Event of Default (other than with respect to an event described in clauses (f)
or (g) of Section 8.1 hereof) then exists or would be caused thereby. If at any
time that any Letters of Credit are outstanding, any of the events described in
clauses (f) or (g) of Section 8.1 hereof shall have occurred, then each Lender
shall, automatically upon the occurrence of any such event and without any
action on the part of the Issuing Bank, the Borrower, the Administrative Agent
or the Lender, be deemed to have purchased an undivided participation in the
face amount of all Letters of Credit then outstanding in an amount equal to such
face amount of the Letters of Credit outstanding multiplied by such Lender's
Commitment Ratio and each Lender shall, notwithstanding such Event of Default,
upon a drawing under any Letter of Credit, immediately pay to the Administrative
Agent for the account of the Issuing Bank, in immediately available funds, the
amount of such Lender's participation (and the Issuing Bank shall deliver to
such Lender a loan participation certificate dated the date of the occurrence of
such event and in the amount of such Lender's Commitment Ratio). The
disbursement of funds in connection with a draw under a Letter of Credit
pursuant to this Section hereunder shall be subject to the terms and conditions
of Section 2.2(e) hereof. The obligation of each Lender to make payments to the
-50-
Administrative Agent, for the account of the Issuing Bank, in accordance with
this Section 2.14(d) shall be absolute and unconditional and no Lender shall be
relieved of its obligations to make such payments by reason of noncompliance by
any other Person with the terms of the Letter of Credit or for any other reason.
The Administrative Agent shall promptly remit to the Issuing Bank the amounts so
received from the other Lenders. Any overdue amounts payable by the Lenders to
the Issuing Bank in respect of a draw under any Letter of Credit shall bear
interest, payable on demand, (x) for the first two Business Days, at the Federal
Funds Rate, and (y) thereafter, at the Prime Rate.
(e) The Borrower agrees that each Advance by the Lenders to reimburse
the Issuing Bank for draws under any Letter of Credit, shall, for all purposes
hereunder, be deemed to be a Prime Rate Advance under the Revolving Loan
Commitment and shall be payable and bear interest in accordance with all other
Revolving Loans.
(f) The Borrower agrees that any action taken or omitted to be taken
by the Issuing Bank in connection with any Letter of Credit, except for such
actions or omissions as shall constitute gross negligence or willful misconduct
on the part of the Issuing Bank as determined by a final non-appealable order of
a court of competent jurisdiction, shall be binding on the Borrower as between
the Borrower and the Issuing Bank, and shall not result in any liability of the
Issuing Bank to the Borrower. The obligation of the Borrower to reimburse an
Issuing Bank for a drawing under any Letter of Credit or the Lenders for
Advances made by them to the Issuing Bank on account of draws made under the
Letters of Credit shall be absolute, unconditional and irrevocable, and shall be
paid strictly in accordance with the terms of this Agreement under all
circumstances whatsoever, including, without limitation, the following
circumstances:
(i) Any lack of validity or enforceability of any Loan Document;
(ii) Any amendment or waiver of or consent to any departure from
any or all of the Loan Documents;
(iii) Any improper use which may be made of any Letter of Credit
or any improper acts or omissions of any beneficiary or transferee of
any Letter of Credit in connection therewith;
(iv) The existence of any claim, set-off, defense or any right
which the Borrower may have at any time against any beneficiary or any
transferee of any Letter of Credit
-51-
(or Persons for whom any such beneficiary or any such transferee may be
acting), any Lender or any other Person, whether in connection with any
Letter of Credit, any transaction contemplated by any Letter of Credit,
this Agreement, or any other Loan Document, or any unrelated
transaction;
(v) Any statement or any other documents presented under any
Letter of Credit proving to be insufficient, forged, fraudulent or
invalid in any respect or any statement therein being untrue or
inaccurate in any respect whatsoever;
(vi) The insolvency of any Person issuing any documents in
connection with any Letter of Credit;
(vii) Any breach of any agreement between the Borrower and any
beneficiary or transferee of any Letter of Credit;
(viii) Any irregularity in the transaction with respect to which any
Letter of Credit is issued, including any fraud by the beneficiary or
any transferee of such Letter of Credit;
(ix) Any errors, omissions, interruptions or delays in transmission
or delivery of any messages, by mail, cable, telegraph, wireless or
otherwise, whether or not they are in code;
(x) Any act, error, neglect or default, omission, insolvency or
failure of business of any of the correspondents of the Issuing Bank;
and
(xi) Any other circumstances arising from causes beyond the control
of the Issuing Bank.
(g) If, after the date hereof, the adoption of any Applicable Law
regarding the capital adequacy of banks or bank holding companies, or any change
in Applicable Law or any change in the interpretation or administration thereof
by any governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof, or compliance with any directive
regarding capital adequacy (whether or not having the force of law) shall (i)
impose, modify or deem applicable any reserve (including, without limitation,
any imposed by the Board of Governors of the Federal Reserve System), special
deposit, capital adequacy, assessment or other requirements or conditions
against letters of credit issued by
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the Issuing Bank or (ii) impose on the Issuing Bank any other condition
regarding this Agreement or any Letter of Credit or any participation therein,
and the result of any of the foregoing in the determination of the Issuing Bank
is to increase the cost to the Issuing Bank of issuing or maintaining any Letter
of Credit or purchasing or maintaining any participation therein by an amount
deemed by the Issuing Bank to be material, then, upon receipt of written demand
by the Issuing Bank, the Borrower agrees to pay to the Issuing Bank, from time
to time as specified by the Issuing Bank, such additional amount or amounts as
the Issuing Bank determines will compensate it for such increased costs, from
the date such change or action is effective, together with interest on each such
amount from the fourth day after receipt of such demand, until payment in full
thereof at the Prime Rate Basis. The Issuing Bank shall not be entitled to
compensation under this Section 2.14(g) for any increased costs incurred more
than one year prior to the date it makes written demand to the Borrower for such
compensation. A certificate of the Issuing Bank setting forth the amount to be
paid by the Borrower as a result of any event referred to in this paragraph and
demonstrating the basis for and calculation of such determination shall, absent
manifest error, be conclusive. The Issuing Bank agrees that if any amount or any
portion of any amount described in this Section 2.14(g) is subsequently
recovered by the Issuing Bank, it shall promptly reimburse the Borrower to the
extent of the amount so recovered.
(h) Each Lender shall be responsible for its pro rata share (based on
such Lender's Commitment Ratio) of any and all reasonable out-of-pocket costs,
expenses (including reasonable legal fees) and disbursements which may be
incurred or made by the Issuing Bank in connection with the collection of any
amounts due under, the administration of, or the presentation or enforcement of
any rights conferred by any Letter of Credit, the Borrower's or any guarantor's
obligations to reimburse draws thereunder or otherwise. In the event the
Borrower shall fail to pay such expenses of the Issuing Bank within sixty (60)
days of demand for payment by the Issuing Bank, each Lender shall thereupon pay
to the Issuing Bank its pro rata share (based on such Lender's Commitment Ratio)
of such expenses within ten (10) days from the date of the Issuing Bank's notice
to the Lenders of the Borrower's failure to pay; provided, however, that if the
Borrowers shall thereafter pay such expenses, the Issuing Bank will repay to
each Lender the amounts received from such Lender hereunder.
-53-
ARTICLE 3
Conditions Precedent
--------------------
Section 3.1 Conditions Precedent to Initial Advance of Loans. The
------------------------------------------------
obligation of the Lenders to undertake the Commitments and to make the initial
Advance hereunder is subject to the prior fulfillment of each of the following
conditions:
(a) The Administrative Agent, the Collateral Agent and the Lenders,
as appropriate, shall have received each of the following, in form and substance
satisfactory to each of them:
(i) the loan certificate of the Borrower, in substantially the
form attached hereto as Exhibit M, including a certificate of incumbency with
---------
respect to each Authorized Signatory, together with appropriate attachments
which shall include, without limitation, the following items: (A) a copy of the
Certificate of Incorporation of the Borrower, certified to be true, complete and
correct by the Delaware Secretary of State, (B) certificates of good standing
for the Borrower issued by (i) the Delaware Secretary of State, (ii) the
California Secretary of State, (iii) the Texas Secretary of State, and (iv) the
Secretary of State or similar state official for each other state in which the
Borrower is required to qualify to do business, (C) a true, complete and correct
copy of the By-Laws of the Borrower, as in effect on the Agreement Date, (D) a
true, complete and correct copy of the resolutions of the Borrower authorizing
it to execute, deliver and perform this Agreement and the other Loan Documents,
(E) a true, complete and correct copy of all shareholders' agreements or voting
trust agreements in effect with respect to the stock of the Borrower, and (F) a
true, complete and correct description of all Liens of record on the Agreement
Date with respect to the assets of the Borrower and its Subsidiaries;
(ii) duly executed Notes;
(iii) duly executed Borrower's Pledge Agreement, together with
appropriate stock certificates and stock powers;
(iv) duly executed Stock Pledge Agreement, together with
appropriate stock certificates and stock powers;
(v) duly executed Parent Company Guaranty;
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(vi) copies of insurance binders or certificates covering the
assets of the Borrower and its Subsidiaries, and otherwise meeting the
requirements of Section 5.5 hereof;
(vii) opinion of Xxxxxx & Xxxxxxx, counsel to the Parent Company,
the Borrower and the Subsidiaries of the Borrower, addressed to each
Lender, the Collateral Agent and the Administrative Agent, dated as of
the Agreement Date;
(viii) duly executed Request for Advance for the initial Advance of
the Loans;
(ix) duly executed Use of Proceeds Letter;
(x) UCC-11 title search results with respect to the Borrower and
its Subsidiaries, together with appropriate UCC-3 termination statements
relating to Liens which are not Permitted Liens;
(xi) a Certificate of Financial Condition for the Borrower and its
Subsidiaries on a consolidated basis, given by the chief financial
officer or the vice president-finance of the Borrower, in substantially
the form of Exhibit N attached hereto;
---------
(xii) audited financial statements for the Parent Company, the
Borrower and the Borrower's Subsidiaries on a consolidated basis for the
fiscal year ended December 31, 1996;
(xiii) unaudited financial statements for the Parent Company, the
Borrower and the Borrower's Subsidiaries on a consolidated basis for the
quarter ended March 31, 1997;
(xiv) any required FCC consents to the execution, delivery and
performance of this Agreement and the other Loan Documents, each of
which shall be in form and substance satisfactory to the Administrative
Agent and the Lenders;
(xv) duly executed Subsidiary Pledge Agreement from each
Subsidiary of the Borrower which has a Subsidiary, together with
appropriate stock certificates and stock powers;
(xvi) duly executed Subsidiary Guaranty given by each Subsidiary of
the Borrower;
(xvii) a loan certificate from the Parent Company,
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in substantially the form attached hereto as Exhibit O, including a
---------
certificate of incumbency with respect to each officer authorized to
execute Loan Documents on behalf of the Parent Company, together with
appropriate attachments which shall include, without limitation, the
following items: (A) a copy of the Certificate of Incorporation of the
Parent Company, certified to be true, complete and correct by the
Delaware Secretary of State, (B) certificates of good standing for the
Parent Company issued by the Secretary of State or similar state
official for each state in which the Parent Company is incorporated or
required to qualify to do business, (C) a true, complete and correct
copy of the By-Laws of the Parent Company, as in effect on the Agreement
Date, (D) a true, complete and correct copy of the resolutions of the
Parent Company, authorizing it to execute, deliver and perform the Loan
Documents to which it is a party, and (E) a true, complete and correct
copy of all shareholders' agreements or voting trust agreements of which
the Borrower or the Parent Company has knowledge and which are in effect
with respect to the stock of the Parent Company;
(xviii) duly executed Assignment of Partnership Interests, together
with appropriate UCC-1 financing statement forms;
(xix) duly executed Collateral Assignment of Trust Interests,
together with appropriate UCC-1 financing statement forms;
(xx) a loan certificate from each Subsidiary of the Borrower, in
substantially the form attached hereto as Exhibit P, including a
---------
certificate of incumbency with respect to each officer authorized to
execute Loan Documents on behalf of such Subsidiary, together with
appropriate attachments which shall include, without limitation, the
following items: (A) a copy of the Certificate of Incorporation or
Partnership Agreement and Certificate of Limited Partnership, as
applicable, of such Subsidiary, certified to be true, complete and
correct by the appropriate Secretary of State, (B) certificates of good
standing for such Subsidiary issued by the Secretary of State or similar
state official for each state in which such Subsidiary is incorporated
or required to qualify to do business, (C) a true, complete and correct
copy of the By-Laws of such Subsidiary, as in effect on the Agreement
Date, (D) a true, complete and correct copy of the resolutions of such
Subsidiary authorizing it to execute, deliver and perform the Loan
Documents to which it is a party, and (E) a
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true, complete and correct copy of all shareholders' or other similar
agreements or voting trust agreements in effect with respect to the
stock or partnership interests of such Subsidiary;
(xxi) a copy of the duly executed Merger Agreement, duly executed
Joint Purchase Agreement, and the duly executed Viacom Purchase
Agreement; and
(xxii) all such other documents as the Administrative Agent may
reasonably request, certified by an appropriate governmental official or
an Authorized Signatory (with respect to the Borrower) or other
appropriate party if so requested.
(b) The Administrative Agent and the Lenders shall have received
evidence satisfactory to them that all Necessary Authorizations have been
obtained or made, are in full force and effect and are not subject to any
pending or threatened reversal or cancellation, and the Administrative Agent,
the Lenders and the Collateral Agent shall have received a certificate of an
Authorized Signatory so stating.
(c) The Administrative Agent, the Lenders and Paul, Hastings,
Xxxxxxxx & Xxxxxx, special counsel to the Administrative Agent, shall have
received payment of all fees due and payable on the Agreement Date in respect of
the closing of the transaction contemplated hereby.
(d) The chief financial officer or the vice president-finance of the
Borrower shall have presented the Administrative Agent and the Lenders with a
certificate, in substantially the form of Exhibit E attached hereto (Form of
---------
Request for Advance for the Initial Advance of the Loans), to the effect that
(A) there has occurred no event having a Materially Adverse Effect since
December 31, 1996, (B) the Borrower and, to the extent applicable, its
Subsidiaries are in compliance with all of the terms and conditions of all of
the conditions and covenants (as the same may have been amended, modified or
waived) under their existing agreements with respect to any Indebtedness
incurred by the Borrower or its Subsidiaries (including the Prior Loan
Agreement), and (C) upon consummation of this transaction and the other
transactions contemplated hereby, the Borrower shall be in compliance on a pro
---
forma basis with the covenants in Sections 7.8, 7.9, and 7.10 hereof. Such
-----
certificate shall contain as attachments the calculations required to
demonstrate such compliance with Sections 7.8, 7.9, and 7.10 hereof.
Section 3.2 Conditions Precedent to Each Advance. The
------------------------------------
-57-
obligation of the Lenders to make each Advance (including the initial Advance
hereunder but excluding Advances, the proceeds of which are to reimburse the
Issuing Bank for amounts drawn under a Letter of Credit) is subject to the
fulfillment of each of the following conditions immediately prior to or
contemporaneously with such Advance:
(a) All of the representations and warranties of the Borrower under
this Agreement and the other Loan Documents (including, without limitation, all
representations and warranties with respect to the Borrower's Subsidiaries),
which, pursuant to Section 4.2 hereof, are made at and as of the time of such
Advance, shall be true and correct at such time in all material respects, both
before and after giving effect to the application of the proceeds of such
Advance, and after giving effect to any updates to information provided to the
Lenders in accordance with the terms of such representations and warranties, and
no Default shall then exist or be caused thereby;
(b) With respect to Advances which, if funded, would increase the
aggregate amount of the Loans outstanding hereunder, the Administrative Agent
and the Lenders shall have received a duly executed Request for Advance which
states that there does not then exist a Default, nor would a Default be caused
by the requested Advance;
(c) With respect to any Advance relating to any Acquisition or
Investment, or the formation of any Subsidiary, which is permitted hereunder,
the Administrative Agent and the Lenders shall have received such documents and
instruments relating to such Acquisition, Investment, or formation of a new
Subsidiary as are described in Section 5.12 hereof; and
(d) Each of the Administrative Agent and the Lenders shall have
received all such other certificates, reports, statements, opinions of counsel
or other documents as the Administrative Agent or any Lender may reasonably
request.
3.3 Conditions Precedent to Each Letter of Credit. The obligation of the
---------------------------------------------
Issuing Bank to issue each Letter of Credit is subject to the fulfillment of
each of the following conditions immediately prior to or contemporaneously with
the issuance of such Letter of Credit:
(a) All of the representations and warranties of the Borrower under
this Agreement, which, pursuant to Section 4.2 hereof, are made at and as of the
time of the issuance of such Letter of Credit, shall be true and correct at such
time, both before and after giving effect to the issuance of the Letter of
-58-
Credit, and the Administrative Agent shall have received a certificate (which
may be a Request for Issuance of Letter of Credit) to that effect signed by the
Authorized Signatory and dated the date of the issuance of such Letter of
Credit;
(b) The incumbency of the Authorized Signatory shall be as stated in
the certificate of incumbency contained in the certificate of the Borrower
delivered pursuant to Section 3.1(a)(i) or as subsequently modified and
reflected in a certificate of incumbency delivered to the Administrative Agent
and the Lenders;
(c) There shall not exist on the date of issuance of such Letter of
Credit, and after giving effect thereto, a Default, or an Event of Default
hereunder; and
(d) The Administrative Agent and the Issuing Bank shall have received
a duly executed Request for Issuance of Letter of Credit from the Borrower; and
(e) The Administrative Agent and the Issuing Bank shall have received
all such other certificates, reports, statements or other documents as the
Administrative Agent or Issuing Bank may reasonably request and all other
conditions to the issuance of such Letter of Credit which are set forth in this
Agreement shall have been fulfilled.
The Borrower hereby agrees that the delivery of any Request for Issuance of a
Letter of Credit hereunder shall be deemed to be the certification of the
Authorized Signatory that there does not exist, on the date of the request for
issuance of the Letter of Credit and after giving effect thereto, a Default
hereof, or an Event of Default hereunder.
ARTICLE 4
Representations and Warranties
------------------------------
Section 4.1 Representations and Warranties. The Borrower hereby agrees,
------------------------------
represents and warrants in favor of the Administrative Agent, the Collateral
Agent, the Issuing Bank and each Lender, that:
(a) Organization; Ownership; Power; Qualification; Capitalization.
-------------------------------------------------------------
The Borrower is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware having the Parent Company as
its only shareholder of record as of the Agreement Date. The Borrower has the
corporate
-59-
power and authority to own its properties and to carry on its business as now
being and hereafter proposed to be conducted. Each Subsidiary of the Borrower
is a corporation or a partnership duly organized, validly existing and in good
standing under the laws of the state of its incorporation or formation, as the
case may be, and has the corporate or partnership power and authority, as the
case may be, to own its properties and to carry on its business as now being and
hereafter proposed to be conducted. The Borrower and each of its Subsidiaries
are duly qualified, in good standing and authorized to do business in each
jurisdiction in which the character of their respective properties or the nature
of their respective businesses requires such qualification or authorization.
(b) Authorization; Enforceability. The Borrower has the corporate
-----------------------------
power and has taken all necessary corporate action to authorize it to borrow
hereunder, to execute, deliver and perform this Agreement and each of the other
Loan Documents to which it is a party in accordance with their respective terms,
and to consummate the transactions contemplated hereby and thereby. This
Agreement and the other Loan Documents have been duly executed and delivered by
the Borrower and this Agreement is, and each of the other Loan Documents to
which the Borrower is a party is, a legal, valid and binding obligation of the
Borrower enforceable in accordance with its terms, subject, as to enforcement of
remedies, to the following qualifications: (i) an order of specific performance
and an injunction are discretionary remedies and, in particular, may not be
available where damages are considered an adequate remedy at law, (ii)
enforcement may be limited by bankruptcy, insolvency, liquidation,
reorganization, reconstruction and other similar laws affecting enforcement of
creditors' rights generally (insofar as any such law relates to the bankruptcy,
insolvency or similar event of the Borrower) and (iii) enforcement may be
subject to general principles of equity (regardless of whether such enforcement
is considered in a proceeding in equity or at law).
(c) Subsidiaries; Authorization; Enforceability. The Borrower's
-------------------------------------------
Subsidiaries and its direct and indirect ownership thereof are as set forth as
of the Agreement Date on Schedule 2 attached hereto. Each Subsidiary of the
----------
Borrower has the corporate or partnership power, as the case may be, and has
taken all necessary corporate or partnership action to authorize it to execute,
deliver and perform each of the Loan Documents to which it is a party in
accordance with their respective terms and to consummate the transactions
contemplated by this Agreement and by such other Loan Documents. Each of the
Loan Documents to which any Subsidiary of the Borrower is party is a legal,
valid and binding obligation of such Subsidiary enforceable against such
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Subsidiary in accordance with its terms, subject, as to enforcement of remedies,
to the following qualifications: (i) an order of specific performance and an
injunction are discretionary remedies and, in particular, may not be available
where damages are considered an adequate remedy at law, (ii) enforcement may be
limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction
and other similar laws affecting enforcement of creditors' rights generally
(insofar as any such law relates to the bankruptcy, insolvency or similar event
of any such Subsidiary), and (iii) enforcement may be subject to general
principles of equity (regardless of whether such enforcement is considered in a
proceeding in equity or at law).
(d) Compliance with Other Loan Documents and Contemplated
-----------------------------------------------------
Transactions. The execution, delivery and performance, in accordance with their
------------
respective terms, by the Borrower of this Agreement and the Notes, and by the
Borrower and its Subsidiaries of each of the other Loan Documents to which they
are respectively a party, and the consummation of the transactions contemplated
hereby and thereby, do not and will not (i) require any consent or approval not
already obtained, (ii) violate any material Applicable Law respecting the
Borrower or any Subsidiary of the Borrower, (iii) conflict with, result in a
breach of, or constitute a default under, the currently operative certificate or
articles of incorporation, by-laws or partnership agreement, as the case may be,
of the Borrower or of any Subsidiary of the Borrower, or in any material respect
under any material indenture, agreement, or other instrument, including, without
limitation, the Material Licenses, to which the Borrower or any of its
Subsidiaries is a party or by which any of them or their respective properties
may be bound, or (iv) result in or require the creation or imposition of any
Lien upon or with respect to any property now owned or hereafter acquired by the
Borrower or any of its Subsidiaries, except for Permitted Liens.
(e) Business. The Borrower is a holding company for its
--------
Subsidiaries and, as of the Agreement Date, directly owns and operates radio
station KKBT-FM, Los Angeles, California. The Borrower is engaged in the radio
broadcasting business. The Borrower's Subsidiaries are engaged solely in the
radio broadcasting and related businesses.
-61-
(f) Licenses, etc. The Licenses have been duly authorized by the
-------------
grantors thereof and are in full force and effect. The Borrower and its
Subsidiaries are in compliance in all material respects with all of the
provisions thereof. The Borrower and its Subsidiaries have secured all Necessary
Authorizations and all Necessary Authorizations are in full force and effect. No
Material License is the subject of any pending or, to the best of the Borrower's
knowledge, threatened revocation. No other License or Necessary Authorization is
the subject of any pending or, to the best of the Borrower's knowledge,
threatened revocation, except as described on Schedule 6 attached hereto as of
----------
the Agreement Date or subsequently disclosed in writing to the Administrative
Agent, the Collateral Agent and each Lender.
(g) Compliance with Law. The Borrower and its Subsidiaries are in
-------------------
substantial compliance with all material Applicable Laws.
(h) Title to Assets. The Borrower has good, legal and marketable
---------------
title to, or a valid leasehold interest in, all of its assets. Each of the
Borrower's Subsidiaries has good, legal and marketable title to, or a valid
leasehold interest in, all of its assets. None of such properties or assets is
subject to any Liens, except for Permitted Liens. Except for financing
statements evidencing Permitted Liens, no financing statement under the Uniform
Commercial Code as in effect in any jurisdiction and no other filing which names
the Borrower or any of its Subsidiaries as debtor or which covers or purports to
cover any of the assets of the Borrower or any of its Subsidiaries is currently
effective and on file in any state or other jurisdiction, and neither the
Borrower nor any of its Subsidiaries has signed any such financing statement or
filing or any security agreement authorizing any secured party thereunder to
file any such financing statement or filing.
(i) Litigation. Except as described on Schedule 6 attached hereto,
----------
there is no material action, suit, revocation, proceeding or investigation
pending against, or, to the best of the Borrower's knowledge, threatened against
or in any other manner relating adversely to, the Borrower or any of its
Subsidiaries or any of their respective properties, including, without
limitation, any License or Necessary Authorization in any court or before any
arbitrator of any kind or before or by any governmental body (including, without
limitation, the FCC), which (i) calls into question the validity or
enforceability of this Agreement or any other Loan Document, (ii) in the
reasonable, good faith judgment of management of the Borrower, may result in an
adverse decision to the Borrower or any Subsidiary of the
-62-
Borrower, and which outcome could reasonably be expected to have a Materially
Adverse Effect, or (iii) which an executive officer of the Borrower reasonably
believes may result in an adverse decision pertaining to the continued
possession and use by the Borrower or any of its Subsidiaries of any Material
License granted by the FCC.
(j) Taxes. All material federal, state and other tax returns of
-----
the Borrower and each of its Subsidiaries required by law to be filed have been
duly filed and all federal, state and other taxes, including, without
limitation, withholding taxes, assessments and other governmental charges or
levies required to be paid by the Borrower or any of its Subsidiaries or imposed
upon the Borrower or any of its Subsidiaries or any of their respective
properties, income, profits or assets, which are due and payable, have been
paid, except any such taxes (i) the payment of which the Borrower or any of its
Subsidiaries is diligently contesting in good faith by appropriate proceedings,
(ii) for which adequate reserves have been provided on the books of the Borrower
or the Subsidiary of the Borrower involved in accordance with GAAP, and (iii) as
to which no Lien other than a Permitted Lien has attached and no foreclosure,
distraint, sale or similar proceedings have been commenced. The charges,
accruals and reserves on the books of the Borrower and each of its Subsidiaries
in respect of taxes are, in the judgment of the Borrower, adequate.
(k) Financial Statements. The Borrower has furnished or caused to
--------------------
be furnished to the Administrative Agent, the Collateral Agent and the Lenders
copies of the audited balance sheets and statements of income for the Parent
Company, the Borrower and the Borrower's Subsidiaries on a consolidated basis
for the fiscal year ended December 31, 1996, and similar unaudited financial
statements for the quarter ended March 31, 1997, which together with other
financial statements furnished to the Administrative Agent and the Lenders
subsequent to the Agreement Date, are complete and correct in all material
respects and present fairly in accordance with GAAP the financial condition of
the Parent Company, the Borrower and the Borrower's Subsidiaries on a
consolidated basis on and as at such dates and the results of operations for the
periods then ended (subject, in the case of unaudited financial statements, to
normal year-end adjustments). Neither the Parent Company, the Borrower, nor any
of the Borrower's Subsidiaries has any material liabilities, contingent or
otherwise, other than as disclosed in the financial statements referred to in
the preceding sentence (including any footnotes thereto) or as set forth or
referred to in this Agreement, and there are no material unrealized losses of
the Parent Company, the Borrower, or any of the Borrower's
-63-
Subsidiaries and no material anticipated losses of the Parent Company, the
Borrower, or any of the Borrower's Subsidiaries other than those which have been
previously disclosed in writing to the Administrative Agent, the Collateral
Agent and the Lenders and identified as such.
(l) No Adverse Change. From December 31, 1996 to the Agreement
-----------------
Date (and as of the end of each fiscal quarter thereafter) there has occurred no
event which could reasonably be expected to have a Materially Adverse Effect.
(m) ERISA. The Borrower and each Subsidiary of the Borrower and
-----
each of their respective Plans are in substantial compliance with ERISA and the
Code and neither the Borrower nor any of its Subsidiaries has incurred any
material accumulated funding deficiency with respect to any such Plan within the
meaning of ERISA or the Code except as waived pursuant to a ruling issued in
favor of the Borrower or the affected Subsidiary by the Internal Revenue
Service. The Borrower, each of its Subsidiaries, and each other Person which is
affiliated with the Borrower or with any of its Subsidiaries within the meaning
of Section 414 of the Code, have complied with all material requirements of
Sections 10001 and 10002 of the Consolidated Omnibus Budget Reconciliation Act
of 1985 (Public Law No. 99-272), Section 4980B of the Code. Neither the Borrower
nor any of its Subsidiaries has made any material promises of retirement or
other benefits to employees, except as set forth in their respective Plans or in
written employment agreements with such employees. Neither the Borrower nor any
of its Subsidiaries has incurred any material liability to the PBGC in
connection with any such Plan. As of the last day of the last Plan year, the
present value of "benefit liabilities" (as defined in Section 9313(a) of the
Pension Protection Act included in the Omnibus Budget Reconciliation Act of
1987, Pub. L. 100-203), Section 4001(a)(16) of ERISA, due under such Plan upon
termination did not exceed the aggregate present value of the assets of such
Plans by a material amount. No material Reportable Event has occurred and is
continuing with respect to any such Plan. No such Plan or trust created
thereunder, or party in interest (as defined in Section 3(14) of ERISA), or any
fiduciary (as defined in Section 3(21) of ERISA) with respect to such Plan, has
engaged in a "prohibited transaction" (as such term is defined in Section 406 of
ERISA or Section 4975 of the Code) which would subject such Plan or any other
Plan of the Borrower or any of its Subsidiaries, any trust created thereunder or
the Borrower or any of its Subsidiaries to a material tax or penalty on
"prohibited transactions" imposed by Section 502 of ERISA or Section 4975 of the
Code. Except as set forth on Schedule 7 attached hereto or as the Borrower may
subsequently ----------
-64-
notify the Administrative Agent and the Lenders in writing, neither the Borrower
nor any of its Subsidiaries is a participant in or is obligated to make any
payment to a Multiemployer Plan. Neither the Borrower nor any of its
Subsidiaries (1) has had either a complete withdrawal or a partial withdrawal
under Section 4201 et seq. of ERISA from a Multiemployer Plan which had material
-------
"unfunded vested benefits" within the meaning of Section 4211 of ERISA or (2)
has received a notice and demand from the plan sponsor of a Multiemployer Plan
under Section 4219(b)(1) of ERISA for withdrawal liability in a material amount.
In addition, (1) no condition exists that presents a material risk of complete
or partial withdrawal from any Multiemployer Plan under Title IV of ERISA, and
(2) if a "complete withdrawal" by the Borrower and its Subsidiaries were to
occur as of the Agreement Date with respect to all Multiemployer Plans, neither
the Borrower nor any of its Subsidiaries would incur any material withdrawal
liability under Title IV of ERISA. For purposes of this subsection (m),
"material" shall be deemed to refer to any matter or condition which could
reasonably be expected to result in a liability described in this subsection (m)
of $10,000,000 or more.
(n) Compliance with Regulations G, T, U and X. Neither the
-----------------------------------------
Borrower nor any Subsidiary of the Borrower is engaged principally or as one of
its important activities in the business of extending credit for the purpose of
purchasing or carrying any margin stock within the meaning of Regulations G, T,
U, and X of the Board of Governors of the Federal Reserve System; nor will any
proceeds of the Loans be used for such purpose to the extent that a violation of
such Regulations would result.
(o) Investment Company Act. Neither the Borrower nor any of its
----------------------
Subsidiaries is required to register under the provisions of the Investment
Company Act of 1940, as amended, and neither the entering into or performance by
the Borrower and its Subsidiaries of this Agreement nor the issuance of the
Notes violates any provision of such Act or requires any consent, approval or
authorization of, or registration with, the Securities and Exchange Commission
or any other governmental or public body or authority pursuant to any provisions
of such Act.
(p) Governmental Regulation. Neither the Borrower nor any of its
-----------------------
Subsidiaries is required to obtain any consent, approval, authorization, permit
or license which has not already been obtained from, or effect any filing or
registration which has not already been effected with, any federal, state or
local regulatory authority in connection with the execution and delivery of this
Agreement or any other Loan Document except for filings of appropriate
counterparts of this Agreement and related
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financing documents with the FCC and the Securities and Exchange Commission.
Neither the Borrower nor any of its Subsidiaries is required to obtain any
consent, approval, authorization, permit or license which has not already been
obtained from, or effect any filing or registration which has not already been
effected with, any federal, state or local regulatory authority in connection
with the performance, in accordance with their respective terms, of this
Agreement or any other Loan Document.
(q) Absence of Default, Etc.. The Borrower and its Subsidiaries
-----------------------
are in compliance in all respects with all of the provisions of their
certificates or articles of incorporation and by-laws or partnership
certificates or agreements, as the case may be, and no event has occurred or
failed to occur (including, without limitation, any matter which could create an
Event of Default by cross-default) which has not been remedied or waived, the
occurrence or non-occurrence of which constitutes, or with the passage of time
or giving of notice or both would constitute, (i) an Event of Default or (ii) a
material default by the Borrower or any of its Subsidiaries under any material
indenture, agreement or other instrument, including, without limiting the
foregoing, the Licenses, or any judgment, decree or order to which the Borrower
or any of its Subsidiaries is a party or by which the Borrower or any of its
Subsidiaries or any of their respective properties may be bound or affected.
Neither the Borrower nor any of its Subsidiaries is a party to or bound by any
contract or agreement continuing after the Agreement Date, or bound by any
Applicable Law, that could reasonably be expected to have a Materially Adverse
Effect or result in the loss of any Material License.
(r) Accuracy and Completeness of Information. All information,
----------------------------------------
reports, prospectuses and other papers and data relating to the Borrower or any
of its Subsidiaries and furnished by or on behalf of the Borrower or any of its
Subsidiaries to the Administrative Agent or the Lenders were, at the time
furnished, true, complete and correct in all material respects to the extent
necessary to give the Administrative Agent and the Lenders true and accurate
knowledge of the subject matter.
(s) Agreements with Affiliates. Except as set forth as of the
--------------------------
Agreement Date on Schedule 8 attached hereto or as subsequently disclosed in
----------
writing to the Administrative Agent and the Lenders, neither the Borrower nor
any of its Subsidiaries has any agreements or binding arrangements of any kind
with any Affiliates.
(t) Payment of Wages. The Borrower and each of its Subsidiaries
----------------
are in compliance with the Fair Labor Standards Act,
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as amended, in all material respects, and the Borrower and each of its
Subsidiaries have paid all minimum and overtime wages required by law to be paid
to their respective employees.
(u) Priority. The Security Interest is a valid and perfected,
--------
first priority security interest in the Collateral in favor of the Collateral
Agent, for itself, and for the ratable benefit of the Administrative Agent, the
Lenders, and the Issuing Bank, securing, in accordance with the terms of the
Security Documents, the outstanding Obligations in accordance with their terms,
and the Collateral is subject to no Liens that are prior to, on a parity with or
junior to the Security Interest. The Liens created by the Security Documents are
enforceable as security for the outstanding Obligations, in accordance with
their terms with respect to the Collateral against the Borrower, its
Subsidiaries, and the Parent Company, as applicable, subject, as to enforcement
of remedies, to the following qualifications: (i) an order of specific
performance and an injunction are discretionary remedies and, in particular, may
not be available where damages are considered an adequate remedy at law, and
(ii) enforcement may be limited by bankruptcy, insolvency, liquidation,
reorganization, reconstruction and other similar laws affecting enforcement of
creditors' rights generally (insofar as any such law relates to the bankruptcy,
insolvency or similar event of the Borrower or any of its Subsidiaries or the
Parent Company, as the case may be).
Section 4.2 Survival of Representations and Warranties, etc. All
------------------------------------------- ---
representations and warranties made under this Agreement shall be deemed to be
made, and shall be true and correct, at and as of the Agreement Date and on the
date of each Advance and the issuance of each Letter of Credit except to the
extent relating to an earlier date and to the extent relating specifically to
the Agreement Date or otherwise subsequently inapplicable. All representations
and warranties made under this Agreement shall survive, and not be waived by,
the execution hereof by the Lenders, the Issuing Bank and the Administrative
Agent, any investigation or inquiry by any Lender, the Issuing Bank or the
Administrative Agent, or the making of any Advance or the issuance of any Letter
of Credit under this Agreement.
ARTICLE 5
General Covenants
-----------------
So long as any of the Obligations is outstanding and unpaid or the Borrower
shall have the right to borrow or have Letters of Credit issued hereunder
(whether or not the conditions to
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borrowing have been or can be fulfilled), and unless the Required Lenders shall
otherwise consent in writing:
Section 5.1 Preservation of Existence and Similar Matters. The Borrower
---------------------------------------------
and each of its Subsidiaries will, except as otherwise permitted by the terms
and provisions of this Agreement:
(a) preserve and maintain its existence, rights, franchises,
licenses and privileges in the state of its incorporation, including,
without limiting the foregoing, the Licenses and all other Necessary
Authorizations; and
(b) qualify and remain qualified and authorized to do business in
each jurisdiction in which the character of their respective properties or
the nature of their respective businesses requires such qualification or
authorization.
Section 5.2 Business; Compliance with Applicable Law. The Borrower will
----------------------------------------
(a) principally engage in the business of acting as a holding company owning its
Subsidiaries and of operating broadcast radio stations, whether directly or
indirectly, and in the related business of owning and operating Broadcast
Architecture, Inc., and (b) substantially comply with the requirements of all
material Applicable Laws. The Borrower's Subsidiaries will (a) (i) engage
solely in the business of radio broadcasting and related businesses or (ii)
engage solely in holding securities of radio broadcasting businesses and any
Non-Core Businesses, as permitted by Section 7.6(g) and (h), and (b)
substantially comply with the requirements of all material Applicable Laws. The
Subsidiaries of the Borrower which are identified on Schedule 2 attached hereto
----------
as "License Subs," shall (except as set forth on such Schedule 2) have no
------------ ----------
business activities, operations, assets, Indebtedness, Guaranties (other than
Permitted Guaranties) or Liens (other than in respect of the Subsidiary
Guaranty), except that each such License Sub shall hold one or more Material
Licenses and shall enter into a management agreement with the Borrower or
another Subsidiary which operates the Station for which such Material License or
Licenses have been issued, and each such License Sub may engage in other
business activities directly related to its ownership of one or more Material
Licenses.
Section 5.3 Maintenance of Properties. The Borrower will, and will cause
-------------------------
each of its Subsidiaries to, maintain or cause to be maintained in the ordinary
course of business in good repair, working order and condition (reasonable wear
and tear excepted) all properties used in their respective businesses
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(whether owned or held under lease), and from time to time make or cause to be
made all needed and appropriate repairs, renewals, replacements, additions,
betterments and improvements thereto.
Section 5.4 Accounting Methods and Financial Records. The Borrower will,
----------------------------------------
and will cause each of its Subsidiaries on a consolidated basis to, maintain a
system of accounting established and administered in accordance with GAAP, keep
adequate records and books of account in which complete entries will be made in
accordance with GAAP and reflecting all transactions required to be reflected by
GAAP and keep accurate and complete records of their respective properties and
assets. The Borrower and its Subsidiaries on a consolidated basis will maintain
a fiscal year ending on December 31.
Section 5.5 Insurance. The Borrower will, and will cause each of its
---------
Subsidiaries to:
(a) Maintain insurance including, but not limited to, business
interruption coverage and public liability coverage insurance from responsible
insurance companies in such amounts and against such risks to the Borrower and
each of its Subsidiaries as is customarily maintained by companies similarly
situated and reasonably acceptable to the Administrative Agent (including,
without limitation, broadcast liability, libel and slander, larceny,
embezzlement, employee fidelity and other criminal misappropriation insurance).
(b) Keep their respective assets insured by responsible insurance
companies on terms and in a manner reasonably acceptable to the Administrative
Agent against loss or damage by fire, theft, burglary, loss in transit,
explosions and hazards insured against by extended coverage, in amounts
customary in the radio broadcasting industry and reasonably satisfactory to the
Administrative Agent, all premiums thereon to be paid by the Borrower and its
Subsidiaries.
(c) Require that each insurance policy provide for at least thirty
(30) days' prior written notice to the Collateral Agent of any termination of or
proposed cancellation or nonrenewal of such policy.
Section 5.6 Payment of Taxes and Claims. The Borrower will, and will
---------------------------
cause each of its Subsidiaries to, pay and discharge all taxes, including,
without limitation, withholding taxes, assessments and governmental charges or
levies required to be paid by them or imposed upon them or their income or
profits or upon any properties belonging to them, prior to the date on which
penalties attach thereto, and all lawful claims for labor,
-69-
materials and supplies which, if unpaid, might become a Lien or charge upon any
of their properties; except that no such tax, assessment, charge, levy or claim
need be paid which is being diligently contested in good faith by appropriate
proceedings and for which adequate reserves shall have been set aside on the
appropriate books in accordance with GAAP, but only so long as such tax,
assessment, charge, levy or claim does not become a Lien or charge other than a
Permitted Lien and no foreclosure, distraint, sale or similar proceedings shall
have been commenced. The Borrower will, and will cause each of its Subsidiaries
to, timely file all information returns required by federal, state or local tax
authorities.
Section 5.7 Visits and Inspections. The Borrower will, and will cause
----------------------
each of its Subsidiaries to, permit representatives of the Administrative Agent
and any of the Lenders, upon reasonable notice, to (a) visit and inspect the
properties of the Borrower or any of its Subsidiaries during business hours, (b)
inspect and make extracts from and copies of their respective books and records,
and (c) discuss with their respective principal officers their respective
businesses, assets, liabilities, financial condition, results of operations and
business prospects. The Borrower and each of its Subsidiaries will also permit
representatives of the Administrative Agent and any of the Lenders to discuss
with their respective auditors their respective businesses, assets, liabilities,
financial condition, results of operations and business prospects.
Section 5.8 Payment of Indebtedness; Loans. Subject to any provisions
------------------------------
herein or in any other Loan Document, the Borrower will, and will cause each of
its Subsidiaries to, pay any and all of their respective Indebtedness when and
as it becomes due, other than (a) amounts diligently disputed in good faith and
for which adequate reserves have been set aside, if required, in accordance with
GAAP, and (b) trade payables, in a manner consistent with industry practices.
Section 5.9 Use of Proceeds. The Borrower will use the aggregate
---------------
proceeds of all Advances under the Loans as set forth in the Use of Proceeds
Letter, in the case of the initial Advance of the Loans, and as set forth in
each Request for Advance in the case of all subsequent Advances of the Loans
which increase the aggregate principal amount of the Loans outstanding at any
time, which shall provide generally that the proceeds of the Term Loan and the
Revolving Loan and the Letters of Credit shall be used by the Borrower (i) to
make Restricted Payments permitted hereby, (ii) to make Acquisitions permitted
hereby and down payments and xxxxxxx money deposits therefor, including, without
limitation,
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to consummate the Pending Transactions and the Gannett Transaction, (iii) to
make Investments permitted by Section 7.6 hereof, (iv) to make Capital
Expenditures permitted hereby, (v) for the repayment on the Agreement Date of
all of the outstanding balance of principal, interest and fees, if any, plus any
Make-Whole Premium (as defined in the Senior Notes), on the Senior Note, and
(vi) for general corporate purposes.
Section 5.10 Indemnity. The Borrower, for itself and on behalf of each of
---------
its Subsidiaries, agrees, jointly and severally, to indemnify and hold harmless
each Lender, the Issuing Bank, the Collateral Agent, the Administrative Agent,
and each of their respective affiliates, employees, representatives, officers
and directors (any of the foregoing shall be an "Indemnitee") from and against
----------
any and all claims, liabilities, losses, damages, actions, investigations,
proceedings, attorneys' fees and expenses (as such fees and expenses are
incurred and irrespective of whether suit is brought) and demands by any party,
including the reasonable costs of investigating and defending such claims,
actions, investigations or proceedings, and the reasonable costs of answering
any discovery served in connection therewith, whether or not the Borrower, any
Subsidiary or the Person seeking indemnification is the prevailing party and
whether or not the Person seeking indemnification is a party to any such action
or proceeding (a) resulting from any breach or alleged breach by the Borrower or
any Subsidiary of the Borrower of any representation or warranty made hereunder,
or (b) arising out of (i) the Commitments or otherwise under this Agreement,
including the issuance of Letters of Credit hereunder and the use of the
proceeds of Loans hereunder in any fashion by the Borrower or any of its
Subsidiaries or the performance of their respective obligations under the Loan
Documents by the Borrower or any of its Subsidiaries, (ii) allegations of any
participation by the Lenders, the Administrative Agent, the Collateral Agent or
any of them in the affairs of the Borrower or any of its Subsidiaries, or
allegations that any of them has any joint liability with the Borrower or any of
its Subsidiaries for any reason, or (iii) any claims against the Lenders, the
Administrative Agent, the Collateral Agent or any of them by any shareholder or
other investor in or lender to the Borrower or any Subsidiary of the Borrower,
by any brokers or finders or investment advisers or investment bankers retained
by the Borrower or by any other third party, for any reason whatsoever, or (c)
in connection with taxes, fees, and other charges payable in connection with the
Loans, or the execution, delivery, and enforcement of this Agreement, the
Security Documents, the other Loan Documents, and any subsequent amendments
thereto or waivers of any of the provisions thereof; unless the Person seeking
indemnification hereunder is determined in such case to have acted or failed to
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act with gross negligence or willful misconduct (including any unexcused
material breach of this Agreement) by a non-appealable judicial order.
If any claim, demand, action or cause of action is asserted against any
Indemnitee entitled to indemnification under the provisions of this Section
5.10, such Indemnitee shall use reasonable efforts under the circumstances to
notify the Borrower within thirty (30) days of its receipt of notice or
knowledge of such claim, demand, action or cause of action, provided that the
--------
failure of any Indemnitee to give notice as provided herein shall not relieve
the Borrower or any Subsidiary of any obligations under this Section 5.10 except
to the extent that the Borrower and the Subsidiaries are actually prejudiced in
any material respect by such failure to give notice. The obligations of the
Borrower and the Subsidiaries under this Section 5.10 are in addition to, and
shall not otherwise limit, any liabilities which the Borrower or any Subsidiary
might otherwise have in connection with any warranties or similar obligations of
the Borrower or such Subsidiary in any other agreement or instrument or for any
other reason.
Section 5.11 Interest Rate Hedging. Within (a) one hundred eighty (180)
---------------------
days from the Agreement Date and (b) ninety (90) days from the funding of any
additional Advance requested by the Borrower one hundred eighty (180) or more
days after the Agreement Date and representing a new borrowing, the Borrower
shall have entered into one or more Interest Hedge Agreements which, together
with any fixed rate Subordinated Indebtedness, result in the fixing of a limit
on the Parent Company's and the Borrower's interest obligations on an aggregate
principal amount of not less than fifty percent (50%) of the principal amount of
Total Debt then outstanding. Such Interest Hedge Agreements shall be entered
into and maintained during the term of this Agreement and shall provide interest
rate protection on terms acceptable to the Administrative Agent for an average
initial period of at least two (2) years from the date of such Interest Hedge
Agreement or the period remaining until the Maturity Date, such terms to include
consideration of the creditworthiness of the other party to the proposed
Interest Hedge Agreement. All obligations of the Borrower to the Administrative
Agent or any of the Lenders pursuant to any Interest Hedge Agreement shall rank
pari passu with all other Obligations.
---- -----
Section 5.12 Covenants Regarding Formation of Subsidiaries and
-------------------------------------------------
Acquisitions. At the time of any Acquisition or the formation of any new
------------
Subsidiary of the Borrower or any of its Subsidiaries which is permitted or
required under this Agreement, or at the time any Unrestricted Subsidiary
becomes a Subsidiary
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of the Borrower, the Borrower and its Subsidiaries, as appropriate, shall (a)
provide to the Collateral Agent an executed Subsidiary Guaranty for such new
Subsidiary (unless such new Subsidiary is a Divestiture Trust), in substantially
the form of Exhibit I, attached hereto, which shall constitute both Security
Documents and Loan Documents for purposes of this Agreement, as well as a loan
certificate for such new Subsidiary, substantially in the form of Exhibit P
---------
attached hereto, together with appropriate attachments; (b) pledge to the
Collateral Agent all of the stock (or other instruments or securities evidencing
ownership) of such Subsidiary or Person which is acquired, formed or becomes a
Subsidiary, beneficially owned by the Borrower or any of the Borrower's
Subsidiaries, as the case may be, as additional Collateral for the Obligations,
to be held by the Collateral Agent in accordance with the terms of a new stock
pledge agreement in substantially the form of Exhibit B or J attached hereto, or
--------------
a new assignment of partnership interests in substantially the form of Exhibit A
---------
attached hereto, or a new Collateral Assignment of Trust Interests, in
substantially the form of Exhibit C attached hereto, and execute and deliver to
---------
the Collateral Agent all such documentation for such pledge as, in the
reasonable opinion of the Administrative Agent and the Required Lenders, is
appropriate; and (c) provide all other documentation, including one or more
opinions of counsel satisfactory to the Administrative Agent and the Required
Lenders which in their reasonable opinion is appropriate with respect to such
Acquisition, the formation of such Subsidiary, or the Unrestricted Subsidiary's
becoming a Subsidiary of the Borrower. Any such document, agreement or
instrument executed or issued pursuant to this Section 5.12 shall be a "Loan
Document" for purposes of this Agreement. Any such Acquisition, formation of a
new Subsidiary for the ownership of a new Station, or the Unrestricted
Subsidiary's becoming a Subsidiary of the Borrower, shall be accompanied by the
formation of a License Sub to hold the FCC License, or by the transfer of the
FCC License to an existing License Subsidiary. For purposes of this Section 5.12
only, "Acquisition" shall mean the consummation and closing of the Acquisition,
and "Unrestricted Subsidiary" shall mean both an Unrestricted Subsidiary owning
a Station and an Unrestricted Subsidiary owning the associated FCC License.
Section 5.13 Payment of Wages. The Borrower and each of its Subsidiaries
----------------
shall at all times comply with the requirements of the Fair Labor Standards Act,
as amended, including, without limitation, the provisions of such Act relating
to the payment of minimum and overtime wages as the same may become due from
time to time.
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ARTICLE 6
Information Covenants
---------------------
So long as any of the Obligations is outstanding and unpaid or the Borrower
has a right to borrow or have Letters of Credit issued hereunder (whether or not
the conditions to borrowing have been or can be fulfilled) and unless the
Required Lenders shall otherwise consent in writing, the Borrower will furnish
or cause to be furnished to each Lender and the Administrative Agent, at their
respective offices:
Section 6.1 Quarterly Financial Statements and Information. Within
----------------------------------------------
forty-five (45) days after the last day of each quarter, the balance sheet of
the Parent Company on a consolidated basis with the Borrower and its
Subsidiaries as at the end of such quarter and as at the end of the preceding
fiscal year, and the related statement of operations and cash flows of the
Parent Company on a consolidated basis with the Borrower and its Subsidiaries
for such quarter and for the elapsed portion of the year ended with the last day
of such quarter, which shall set forth in comparative form such figures as at
the end of and for the previous quarter and appropriate prior period and shall
be certified by the chief financial officer, the vice president-finance, or the
corporate controller of the Parent Company to be, in his or her opinion,
complete and correct in all material respects and to present fairly, in
accordance with GAAP, the financial position of the Parent Company on a
consolidated basis with the Borrower and its Subsidiaries, as at the end of such
period and the results of operations for such period, and for the elapsed
portion of the year ended with the last day of such period, subject only to
normal year-end adjustments. In addition, the Borrower shall also provide with
respect to each market, its Net Revenues, expenses, and Broadcast Cash Flow, for
the current quarter, year-to-date, and against the prior fiscal year's year-to-
date performance.
Section 6.2 Annual Financial Statements and Information. Within one
-------------------------------------------
hundred twenty (120) days after the end of each fiscal year of the Borrower (or
earlier, if available), the audited consolidated balance sheet of the Parent
Company and the Borrower and its Subsidiaries as at the end of such fiscal year
and the related audited consolidated statements of operations for such fiscal
year, the related audited consolidated statements of cash flows of the Parent
Company and the Borrower and its Subsidiaries for such fiscal year, and the
related audited consolidated statement of changes in shareholders' equity for
such fiscal year, each of which shall set forth in comparative form such figures
as at the end of and for the previous two (2) fiscal
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years, and shall be accompanied by an opinion of independent certified public
accountants of recognized national standing, together with a statement of such
accountants certifying that no Default was detected during the examination of
the Borrower, and that nothing came to their attention that caused them to
believe that the Borrower was not in compliance with the terms, covenants,
provisions or conditions of Article 7 hereof, and that such accountants have
authorized the Parent Company to deliver such financial statements and opinion
thereon to the Administrative Agent and the Lenders pursuant to this Agreement.
Section 6.3 Performance Certificates. At the time the financial
------------------------
statements are furnished pursuant to Sections 6.1 and 6.2 hereof, a certificate
of the president, chief financial officer, vice president-finance, or corporate
controller of the Borrower, in form and substance satisfactory to the
Administrative Agent and the Required Lenders:
(a) setting forth as at the end of such quarterly period or fiscal
year, as the case may be, the arithmetical calculations required to establish
(i) any interest rate adjustment, as provided for in Section 2.3(f) hereof, and
(ii) whether or not the Borrower was in compliance with the requirements of
Sections 5.11, 7.7, 7.8, 7.9, and 7.10 hereof;
(b) stating that, to the best of his or her knowledge, no Default
has occurred as at the end of such quarterly period or year, as the case may be,
or, if a Default has occurred, disclosing each such Default and its nature, when
it occurred, whether it is continuing and the steps being taken by the Borrower
with respect to such Default; and
(c) containing a statement, upon request of any Lender, of the most
recent Arbitron 12+ demographics rating and Arbitron target demographics rating
for each of the Stations.
Section 6.4 Copies of Other Reports.
-----------------------
(a) Promptly upon receipt thereof, copies of all reports, if any,
submitted to the Borrower or the Parent Company by their independent public
accountants regarding the Parent Company or the Borrower, including, without
limitation, any management report prepared in connection with the annual audit
referred to in Section 6.2 hereof.
(b) Promptly upon the request of the Administrative Agent or any
Lender, a copy of the annual budget for the Borrower on a consolidated and
consolidating basis with its Subsidiaries, including the budget for Capital
Expenditures.
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(c) Promptly upon receipt thereof, copies of any material notice or
report regarding any Material License from the FCC.
(d) From time to time and promptly upon each request, such data,
certificates, reports, statements, opinions of counsel prepared for the
Administrative Agent and the Lenders, or any of them, documents or further
information regarding the business, assets, liabilities, financial position,
projections, results of operations or business prospects of the Borrower or any
of its Subsidiaries, as the Administrative Agent or any Lender may reasonably
request.
(e) Annually, a certificate of insurance indicating that the
requirements of Section 5.5 hereof remain satisfied for such fiscal year.
(f) Promptly upon the filing thereof, copies of all material
reports, proxies, forms or other documents required to be filed or submitted by
the Parent Company to the Securities and Exchange Commission or other federal or
state securities law enforcement agency or commission.
(g) Copies of all notices regarding financial matters or other
matters material to the Parent Company, or to the Borrower or any of its
Subsidiaries, sent to any holder of any Subordinated Indebtedness.
Section 6.5 Notice of Litigation and Other Matters. Notice specifying
--------------------------------------
the nature and status of any of the following events, promptly, but in any event
not later than fifteen (15) days, after any officer of the Borrower becomes
aware of the occurrence of any of the following events (except that in the case
of any event described in clause (i) of this Section 6.5 such certificate shall
be so executed and delivered immediately upon any such officer so becoming aware
of any such event):
(i) the commencement of all proceedings and investigations by or
before any governmental body and all actions and proceedings in any court
or before any arbitrator against, or to the extent known to the Borrower,
in any other way relating materially adversely and directly to the Borrower
or any material Subsidiary of the Borrower, or any of their respective
properties, assets or businesses or any License to the extent that any such
proceeding or investigation could reasonably be expected to have an outcome
resulting in a Materially Adverse Effect;
(ii) any material adverse change with respect to
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the business, assets, liabilities, financial condition, results of
operations or business prospects of the Borrower and its Subsidiaries,
taken as a whole, other than changes in the ordinary course of business
which have not had and could not reasonably be expected to have a
Materially Adverse Effect;
(iii) any adverse material amendment or change to the financial
projections provided to the Lenders by the Borrower prior to the Agreement
Date;
(iv) any adverse material amendment or change to the annual budget
required under Section 6.4(b) hereof;
(v) any Default or the occurrence or non-occurrence of any event (A)
which constitutes, or which with the passage of time or giving of notice or
both would constitute a material default by the Borrower or any Subsidiary
of the Borrower under any material agreement other than this Agreement to
which the Borrower or any Subsidiary of the Borrower is party or by which
any of their respective properties may be bound, or (B) which could
reasonably be expected to have a Materially Adverse Effect, giving in each
case the details thereof and specifying the action proposed to be taken
with respect thereto; and
(vi) the occurrence of any event subsequent to the Agreement Date
which, if such event had occurred prior to the Agreement Date, would have
constituted an exception to the representation and warranty in
Section 4.1(m) of this Agreement.
ARTICLE 7
Negative Covenants
------------------
So long as any of the Obligations is outstanding and unpaid or the Borrower
has a right to borrow from the Lenders hereunder (whether or not the conditions
to borrowing have been or can be fulfilled) and unless the Required Lenders
shall otherwise give their prior consent in writing:
Section 7.1 Indebtedness of the Borrower and its Subsidiaries. The
-------------------------------------------------
Borrower shall not, and shall cause each of its Subsidiaries not to, create,
assume, incur or otherwise become or remain obligated in respect of, or permit
to be outstanding, any Indebtedness except:
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(i) The Obligations, including any Additional Facility
Indebtedness;
(ii) Current accounts payable, accrued expenses, customer advance
payments, and other contractual obligations incurred in the ordinary course
of business;
(iii) Capitalized Lease Obligations in an amount for the Borrower
on a consolidated basis with its Subsidiaries not in excess of $40,000,000
in the aggregate at any one time outstanding;
(iv) Indebtedness secured by Permitted Liens;
(v) Obligations under Interest Hedge Agreements pursuant to
Section 5.11 hereof;
(vi) Indebtedness of the Borrower or any of its Subsidiaries in
favor of the Borrower or any Subsidiary;
(viii) (a) On and after the Merger Date, (x) CRBC Subordinated
Indebtedness (provided that any financial covenants set forth in the
documents governing the CRBC Subordinated Indebtedness which are more
restrictive than the financial covenants set forth in this Article 7 shall
be amended to be no more restrictive prior to such assumption of the CRBC
Subordinated Indebtedness), or (y) any Subordinated Indebtedness issued
solely to refinance the CRBC Subordinated Indebtedness and which does not
increase the principal amount thereof, and (b) additional Subordinated
Indebtedness (including unsecured, subordinated Guaranties of Subordinated
Indebtedness issued by the Parent Company) in an aggregate principal amount
not exceeding $600,000,000 at any one time outstanding; and
(viii) Permitted Guaranties.
Section 7.2 Limitation on Liens. The Borrower shall not, and shall cause
-------------------
each of its Subsidiaries not to, create, assume, incur or permit to exist or to
be created, assumed, incurred or permitted to exist, directly or indirectly, any
Lien on any of its properties or assets, whether now owned or hereafter
acquired, except for Permitted Liens.
Section 7.3 Amendment and Waiver. The Borrower shall not, and shall
--------------------
cause each of its Subsidiaries not to, enter into any amendment of, or agree to
or accept or consent to any waiver of, (a) any of the material provisions of its
articles or certificate of incorporation or similar organizational documents
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or (b) any material provision of (i) its by-laws, (ii) the agreements and
instruments evidencing Subordinated Indebtedness, or (iii) any Material License;
in any case, which amendment or waiver is adverse to the interests hereunder of
the Administrative Agent, the Collateral Agent and the Lenders.
Section 7.4 Liquidation, Change in Ownership, Disposition of Assets,
--------------------------------------------------------
Change in Business of License Subs. The Borrower shall not, and shall cause
----------------------------------
each of its Subsidiaries not to, at any time:
(a) (i) liquidate or dissolve itself (or suffer any liquidation or
dissolution) or otherwise wind up; or (ii) enter into any merger or liquidation
(except a merger of CRBC with and into the Borrower, with the Borrower as the
surviving corporation pursuant to the Merger Agreement, or any merger or
liquidation among the Borrower and one or more of its Subsidiaries, provided
that the Borrower is the surviving corporation, or between or among two or more
of the Subsidiaries of the Borrower, provided that License Subsidiaries may only
liquidate or merge with and into each other);
(b) sell, lease, abandon, transfer or otherwise dispose of all or
any material part of its or any Subsidiary's assets (including the disposition
of stock or other ownership interests, and including the sale with or without
recourse, and the discounting or other sale for less than face value, of any
notes or accounts receivable), property, or business, unless such disposition
meets each of the following conditions (any such sale, lease, transfer or other
disposition being referred to herein as a "Permitted Asset Sale"): (i) there
shall be no Default under this Agreement, both before and after giving effect on
a pro forma basis to the Permitted Asset Sale; (ii) the Net Proceeds of any
Permitted Asset Sale shall be applied as provided in Section 2.7(a) hereof; and
(iii) the Borrower shall have provided, prior to the consummation of such
Permitted Asset Sale including the use of proceeds thereof, to the
Administrative Agent and the Lenders updated financial projections (prepared in
good faith and using assumptions reasonable under the circumstances)
demonstrating that, after giving effect to the Permitted Asset Sale, compliance
with all financial covenants under this Agreement is maintained from the date of
such projections through the Maturity Date;
(c) form any new Subsidiaries, unless no Default then exists or
would be caused thereby, and the Borrower shall comply, and shall cause any such
Subsidiary to comply, with the other terms and provisions of this Agreement,
including, without limitation, Section 5.12 hereof;
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(d) as to the Borrower, issue any additional shares of common stock
unless such shares are issued to the Parent Company and simultaneously pledged
by the Parent Company to the Collateral Agent pursuant to the Stock Pledge
Agreement; or
(e) as to any License Sub, engage in any business activities or
operations, acquire any assets, or incur any Indebtedness other than as
expressly permitted by Section 5.2 hereof.
Section 7.5 Negative Pledges. The Borrower will not, and will not permit
----------------
any of its Subsidiaries to, enter into any agreement (excluding this Agreement,
any Loan Document or any Capitalized Lease Obligations with respect to property
leased thereunder) prohibiting or limiting (a) the creation or assumption of any
Lien upon its properties, revenues or assets, whether now owned or hereafter
acquired, which would secure the Obligations, or (b) the ability of the Borrower
to amend or otherwise modify this Agreement or any other Loan Document.
Section 7.6 Investments, Acquisitions and Asset Swaps. The Borrower
-----------------------------------------
shall not, and shall cause each of its Subsidiaries not to, make any loan or
advance, or make any Investment or otherwise acquire for consideration evidences
of Indebtedness, Capital Stock or other securities of any Person, or make any
Acquisition or execute an asset swap, except that so long as no Default then
exists or would be caused thereby:
(a) The Borrower may, directly or through a brokerage account, (i)
purchase marketable, direct obligations of the United States of America, its
agencies and instrumentalities maturing within three hundred sixty-five (365)
days of the date of purchase, (ii) purchase commercial paper issued by
corporations, each of which shall have a net worth of at least $100 million and
each of which conducts a substantial part of its business in the United States
of America, maturing within two hundred seventy (270) days from the date of the
original issue thereof, and rated "P-2" or better by Xxxxx'x Investors Service,
Inc. or "A-2" or better by Standard and Poor's Corporation, and (iii) purchase
repurchase agreements, bankers' acceptances, and certificates of deposit
maturing within three hundred sixty-five (365) days of the date of purchase
which are issued by, or time deposits maintained with, a United States national
or state bank the deposits of which are insured by the Federal Deposit Insurance
Corporation or the Federal Savings and Loan Insurance Corporation and having
capital, surplus and undivided profits totaling more than $100 million and rated
"A" or better by Xxxxx'x Investors Service, Inc. or Standard and Poor's
Corporation;
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(b) The Borrower and its Subsidiaries may make intercompany loans to
the Borrower or any of its Subsidiaries;
(c) The Borrower and its Subsidiaries may make Acquisitions as
follows:
(i) The Borrower or any of its Subsidiaries may make Acquisitions
with the prior written consent of the Required Lenders;
(ii) The Borrower or any of its Subsidiaries may make one or more
Acquisitions of broadcast radio stations in Top-50 Markets or in markets
other than Top-50 Markets that are served by CRBC or its Subsidiaries as of
the Merger Date;
(iii) The Borrower or any of its Subsidiaries may acquire one or more
groups of broadcast radio stations provided that at least fifty percent
(50%) of the Broadcast Cash Flow of such group is contributed by radio
broadcast stations from Top-50 Markets; and
(iv) The Borrower may consummate the Pending Transactions and the
Gannett Transaction.
Any Acquisition permitted above may be made by the Borrower or any of its
Subsidiaries only subsequent to the prior satisfaction of the following:
first, the Borrower shall comply with, or cause its Subsidiaries to comply
-----
with, the applicable provisions of Section 5.12 hereof; and
second, the Borrower shall have delivered to the Administrative Agent and
------
the Lenders updated financial projections (prepared in good faith and using
assumptions reasonable under the circumstances) demonstrating that, after giving
effect to such Acquisition (and the incurrence of any associated Indebtedness
for Money Borrowed required for such Acquisition), compliance with all financial
covenants under this Agreement is maintained from the date of such projections
through the Maturity Date.
(d) The Borrower or its Subsidiaries may exchange one or more
Stations owned by it for one or more Stations owned by a third party in
connection with a swap transaction (whether or not such swap involves boot),
provided that (i) the broadcast radio station or stations being swapped for meet
the requirements described in Section 7.6(c) hereof; (ii) before and after
giving
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effect to such swap, the Borrower shall be in compliance with this Agreement;
and (iii) the receipt of the asset being swapped for by the Borrower or such
Subsidiary and the transfer from the Borrower or such Subsidiary to the third
party of the asset being swapped in exchange therefor must be completed within
three hundred sixty (360) calendar days of each other;
(e) The Borrower may make loans to officers and employees (but not
to directors, other than directors who are also officers) in an amount not to
exceed in the aggregate, $15,000,000 outstanding at any one time;
(f) In the event of a Permitted Asset Sale under Section 7.4(b)
hereof, the Borrower or one of its Subsidiaries may accept and hold in partial
payment of the purchase price therefor (i) one or more promissory notes or (ii)
equity securities issued by the purchaser of such assets, provided that (x) such
equity securities are pledged to the Collateral Agent as additional Collateral
for the Obligations, (y) the purchaser is engaged principally in the radio
broadcast business, and (z) the face amount of the promissory notes outstanding,
together with the market value of the equity securities (which have not been
previously disposed of by the Borrower or such Subsidiary) as of the date of
acquisition of such securities, together with the aggregate amount of value
referenced in subsection (g) immediately below, and the Restricted Payments
previously made pursuant to Section 7.7(b) hereof, do not exceed the aggregate
amount of Restricted Payments then permitted under such Section 7.7(b);
(g) The Borrower and any Subsidiary of the Borrower may also
purchase and hold additional securities of Persons engaged principally in the
radio broadcast business, provided that (y) the aggregate market value of such
securities (which have not been previously disposed of by the Borrower or such
Subsidiary) as of the date of purchase, together with the value referenced for
inclusion in subsection (f) immediately above, together with the aggregate
amount of Restricted Payments previously made pursuant to Section 7.7(b) hereof,
do not exceed the aggregate amount of Restricted Payments then permitted under
such Section 7.7(b), and (z) such securities shall be pledged to the Collateral
Agent as additional Collateral for the Obligations, pursuant to a stock pledge
agreement in substantially the form attached hereto as Exhibit B or Exhibit J;
--------- ---------
and
(h) the Borrower and any Subsidiary of the Borrower may also
purchase and hold securities of any Non-Core Business, provided that (y) the
aggregate market value of all such
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securities (determined as of the date of purchase) shall not exceed $150,000,000
at any one time outstanding or such greater amount as may be approved in writing
by the Required Lenders, and (z) such securities shall be pledged to the
Collateral Agent as additional Collateral for the Obligations, pursuant to a
Stock Pledge Agreement in substantially the form attached hereto as Exhibit B
---------
or Exhibit J.
---------
Section 7.7 Restricted Payments and Purchases. The Borrower shall not,
---------------------------------
and shall cause each of its Subsidiaries not to, directly or indirectly declare
or make any Restricted Payment or Restricted Purchase (except among the Borrower
and its Subsidiaries), except that so long as no Default then exists or would be
caused by the making of such Restricted Payment or Restricted Purchase, and
subject to full compliance by the Borrower with all of the covenants and
agreements herein after giving effect to such payment:
(a) the Borrower may make (or distribute funds to the Parent Company
to make) scheduled payments of interest on any Subordinated Indebtedness
and scheduled dividend payments on account of any Preferred Stock and
Subsidiaries of the Borrower may make payments under Guaranties (to the
extent permitted hereunder) of Subordinated Indebtedness, to the extent
such payments are permitted by the terms of subordination applicable to
such Guaranties;
(b) the Borrower and the Borrower's Subsidiaries may make Restricted
Payments and Restricted Purchases for or in connection with the repayment,
prepayment, repurchase or redemption of any of the Borrower's or the Parent
Company's equity or debt securities (including warrants for the purchase of
such equity or debt securities) or otherwise during the term of this
Agreement (in addition to amounts paid pursuant to Section 7.7(a) above),
in an aggregate amount not to exceed at any time during the term of this
Agreement the sum of (i) the pro forma Broadcast Cash Flow for the twelve
month period immediately preceding the proposed payment or measurement
date, plus (ii) to the extent that such sums have been contributed as
equity to the Borrower, up to $100,000,000 in proceeds of an offering of
the Parent Company's common stock; provided, however, any Restricted
Payment or Restricted Purchase made under and in compliance with this
Section 7.7(b) in any twelve-month period shall not cause a Default solely
as a result of a decrease in such Broadcast Cash Flow during any subsequent
twelve-month period;
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(c) the Borrower may make payments to the Parent Company in amounts
equal to the Parent Company's Federal, state, and local tax liability which
is actually due and payable arising from its ownership of the Capital Stock
of the Borrower;
(d) the Borrower may distribute cash to the Parent Company to be
used by the Parent Company solely to make payments to its shareholders to
avoid issuing fractional shares of its Capital Stock, provided, however,
that such amounts shall count dollar-for-dollar against the Restricted
Payments permitted to be made pursuant to Section 7.7(b), above;
(e) the Borrower may distribute cash to the Parent Company for
Parent Company obligations then due and payable for any of the following
purposes: (i) expenses in the nature of the Corporate Overhead expenses for
the Borrower; and (ii) fees and expenses for professional services,
including legal, accounting and appraisal services, and ongoing investment
banking fees; and
(f) the Borrower may make Restricted Payments and Restricted
Purchases consisting solely of shares of Preferred Stock otherwise
permitted to be issued by the Borrower hereunder.
Section 7.8 Leverage Ratios. The Borrower shall not, as of the end of
---------------
any fiscal quarter, permit the Senior Leverage Ratio or the Total Leverage
Ratio, as the case may be, to exceed the Senior Leverage Covenant or the Total
Leverage Covenant, as the case may be, during the periods indicated:
Senior
------
Leverage Total Leverage
-------- --------------
Period Ending Covenant Covenant
------------- -------- --------
Agreement Date through 6.50 to 1.00 7.00 to 1.00
December 31, 1997
January 1, 1998 through 5.75 to 1.00 6.75 to 1.00
December 31, 1998
January 1, 1999 through 5.00 to 1.00 6.00 to 1.00
December 31, 1999
January 1, 2000 through 4.25 to 1.00 5.25 to 1.00
December 31, 2000
January 1, 2001 and 4.00 to 1.00 5.00 to 1.00
thereafter
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Notwithstanding the foregoing ratios for the periods indicated, if Subordinated
Indebtedness (other than Subordinated Indebtedness issued (a) solely to
refinance the CRBC Subordinated Indebtedness and which does not increase the
principal amount thereof, and (b) in connection with the consummation of the
Pending Transactions in an aggregate principal amount not exceeding
$200,000,000) is issued by the Borrower or the Parent Company, the Senior
Leverage Covenant for each period set forth above shall be permanently reduced
by .50. Additionally, notwithstanding the foregoing ratios for the periods
indicated, during the Adjustment Period the Total Leverage Covenant shall be
7:50 to 1:00, provided that, to the extent required by the definition of
"Adjustment Trigger Date," the Borrower or the Parent Company or both have
issued not less than (i) $100,000,000 in Preferred Stock or other Capital Stock,
plus (ii) $200,000,000 in Subordinated Debt.
Section 7.9 Operating Cash Flow to Cash Interest Expense Ratio. The
--------------------------------------------------
Borrower shall not, as of the end of any fiscal quarter, permit the ratio for
the four-quarter period then ended of (a) Operating Cash Flow to (b) Cash
Interest Expense, to be less than 2.00 to 1.00.
Section 7.10 Operating Cash Flow to Pro Forma Fixed Charges Ratio. The
----------------------------------------------------
Borrower shall not, as of the end of any fiscal quarter, permit the ratio of (a)
the sum of (i) Operating Cash Flow during the fiscal four-quarter period then
ended, and (ii) the Available Revolving Loan Commitment as of the fiscal quarter
then ended, to (b) Pro Forma Fixed Charges for the four-quarter period beginning
on the day following such fiscal quarter end, to be less than 1.05 to 1.00.
Section 7.11 Affiliate Transactions. Except as specifically provided
----------------------
herein (including, without limitation, Sections 7.6(e) and 7.7 hereof) and as
may be described on Schedule 8 attached hereto, neither the Borrower nor any of
----------
its Subsidiaries shall at any time engage in any transaction with an Affiliate,
or make an assignment or other transfer of any of its properties or assets to
any Affiliate, on terms less advantageous to the Borrower or such Subsidiary
than would be the case if such transaction had been effected with a non-
Affiliate.
Section 7.12 Real Estate. The Borrower and its Subsidiaries shall not, in
-----------
the aggregate, purchase more than $25,000,000 of real estate during the term of
this Agreement, exclusive of real estate acquired in conjunction with an
Acquisition permitted under Section 7.6 hereof and used or useful in connection
with the radio broadcast business. Neither the Borrower nor any of its
Subsidiaries shall purchase or become
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obligated to purchase any other real estate.
Section 7.13 Consolidated Tax Returns. The Borrower will not file, or
------------------------
consent to the filing of, any consolidated income tax return with any Person
other than a Subsidiary or the Parent Company or any other corporation
controlled by the Borrower.
ARTICLE 8
Default
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Section 8.1 Events of Default. Each of the following shall constitute an
-----------------
Event of Default, whatever the reason for such event and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment or order of any court or any order, rule or regulation of any
governmental or non-governmental body:
(a) Any representation or warranty made or deemed made under this
Agreement shall prove incorrect or misleading in any material respect when made
or deemed to be made pursuant to Section 4.2 hereof;
(b) The Borrower shall default in the payment of (i) any interest
under any of the Notes or any reimbursement obligations with respect to any
Letter of Credit, or any fees or other amounts (other than principal) payable to
the Lenders and the Administrative Agent, when due, which Default is not cured
by payment in full of the amount due within five (5) days from the date such
payment became due, or (ii) any principal amount under any of the Notes when
due;
(c) The Borrower shall default in the performance or observance of
any agreement or covenant contained in any of Sections 7.1, 7.4, 7.6, 7.7, 7.8,
7.9, or 7.10 hereof;
(d) There shall occur any default in the performance or observance
of any agreement or covenant or breach of any representation or warranty
contained in any of the Loan Documents (except as otherwise provided in Section
8.1 of this Agreement), by the Borrower or any of its Subsidiaries, or any other
obligor thereunder, which shall not be cured to the satisfaction of the Required
Lenders within a period of thirty (30) days from the date the Borrower or any
such Subsidiary obtains actual knowledge of such default;
(e) (i) Any Person (other than Xxxxx Xxxxxxxx, Xxxxxxx Xxxxxx,
Xxxxxxx X'Xxxxx, and Xxxxx xx Xxxxxx, and, after the
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Merger Date, Hicks, Muse, Xxxx & Xxxxx and its affiliates) shall individually or
collectively control more than fifty-one percent (51%) (on a fully diluted
basis) of the voting power of the Parent Company; or (ii) the Parent Company
shall cease to own all of the issued and outstanding common stock of the
Borrower;
(f) There shall be entered and remain unstayed a decree or order for
relief in respect of the Parent Company, the Borrower, or any of the Borrower's
Subsidiaries under Title 11 of the United States Code, as now constituted or
hereafter amended, or any other applicable Federal or state bankruptcy law or
other similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or similar official of the Parent Company, the Borrower,
or any of the Borrower's Subsidiaries, or of any substantial part of their
respective properties, or ordering the winding-up or liquidation of the affairs
of the Parent Company, the Borrower, or any of the Borrower's Subsidiaries or an
involuntary petition shall be filed against the Parent Company, the Borrower, or
any of the Borrower's Subsidiaries and a temporary stay entered, and (i) such
petition and stay shall not be diligently contested, or (ii) any such petition
and stay shall continue undismissed for a period of forty-five (45) consecutive
days;
(g) The Parent Company, the Borrower, or any of the Borrower's
Subsidiaries shall file a petition, answer or consent seeking relief under Title
11 of the United States Code, as now constituted or hereafter amended, or any
other applicable Federal or state bankruptcy law or other similar law, or the
Parent Company, the Borrower, or any of the Borrower's Subsidiaries shall
consent to or acquiesce in the institution of proceedings thereunder or to the
filing of any such petition or to the appointment or taking of possession of a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Parent Company, the Borrower, or any of the Borrower's
Subsidiaries or of any substantial part of their respective properties, or the
Parent Company, the Borrower, or any of the Borrower's Subsidiaries shall fail
generally or admit in writing their inability to pay their respective debts as
they become due, or the Parent Company, the Borrower, or any of the Borrower's
Subsidiaries shall take any action in furtherance of any such action;
(h) A judgment shall be entered by any court against the Parent
Company, the Borrower, or any of the Borrower's Subsidiaries for the payment of
money which exceeds singly or in the aggregate with other judgments,
$10,000,000, or a warrant of attachment or execution or similar process shall be
issued or levied against property of the Parent Company, the Borrower, or
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any of the Borrower's Subsidiaries which, together with all other such property
of the Parent Company, the Borrower, or any of the Borrower's Subsidiaries
subject to other such process, exceeds in value $10,000,000 in the aggregate,
and if, within thirty (30) days after the entry, issue or levy thereof, such
judgment, warrant or process shall not have been paid or discharged or stayed
pending appeal, or if, after the expiration of any such stay, such judgment,
warrant or process shall not have been paid or discharged;
(i) There shall be at any time any material "accumulated funding
deficiency," as defined in ERISA or in Section 412 of the Code, with respect to
any Plan maintained by the Borrower or any of its Subsidiaries, or to which the
Borrower or any of its Subsidiaries has any liabilities, or any trust created
thereunder; or a trustee shall be appointed by a United States District Court to
administer any such Plan; or PBGC shall institute proceedings to terminate any
such Plan; or the Borrower or any of its Subsidiaries shall incur any material
liability to PBGC in connection with the termination of any such Plan; or any
Plan or trust created under any Plan of the Borrower or any of its Subsidiaries
shall engage in a "prohibited transaction" (as such term is defined in Section
406 of ERISA or Section 4975 of the Code) which would subject any such Plan, any
trust created thereunder or the Borrower or any of its Subsidiaries, to a
material tax or penalty on "prohibited transactions" imposed by Section 502 of
ERISA or Section 4975 of the Code; or the Borrower or any of its Subsidiaries
shall incur any material withdrawal liability as a result of a complete
withdrawal or a partial withdrawal under Section 4201 et seq. of ERISA from a
-------
Multiemployer Plan (and for purposes of this Section 8.1(i), "material" shall
have the meaning set forth in Section 4.1(m) hereof);
(j) There shall occur (i) any acceleration of the maturity of (A)
any agreement or instrument evidencing Subordinated Indebtedness of the Borrower
or the Parent Company, or (B) any other Indebtedness of the Parent Company, the
Borrower, or any of the Borrower's Subsidiaries in an aggregate principal amount
exceeding $3,000,000; (ii) any event or occurrence which would permit such
acceleration of such Subordinated Indebtedness or such other Indebtedness and
which event or occurrence has not been cured within any applicable cure period
or waived in writing prior to any declaration of an Event of Default or
acceleration of the Loans hereunder; (iii) any event which does not permit the
acceleration of such Subordinated Indebtedness or such other Indebtedness in a
principal amount exceeding $3,000,000, but requires the Parent Company, the
Borrower, or any of its Subsidiaries to purchase or acquire such
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Subordinated Indebtedness or such other Indebtedness; or (iv) any material
default under any Interest Hedge Agreement having a notional principal amount of
$6,000,000 or more;
(k) The FCC shall issue to the Borrower or any of its Subsidiaries
an Order of Revocation based upon any alleged attribution of alien ownership
(within the meaning of 47 U.S.C. (S) 310(b) and any interpretation of the FCC
thereunder);
(l) Any Material License shall be terminated or revoked and such
termination or revocation shall not be waived or stayed, or any proceedings
shall in any way be brought to challenge (and shall continue uncontested for a
period of forty-five (45) days), the validity or enforceability of any such
License, or proceedings for the renewal of any such License shall not be
commenced within the period provided by the FCC rules and regulations for the
filing of a renewal application prior to expiration, or any such License shall
expire due to termination, nonrenewal or for any other reason;
(m) Any Security Document or any Note or any other Loan Document or
provision thereof shall at any time and for any reason be declared by a court of
competent jurisdiction to be null and void, or a proceeding shall be commenced
by the Parent Company, the Borrower, or any of the Borrower's Subsidiaries, or
by any governmental authority having jurisdiction over the Parent Company, the
Borrower, or any of the Borrower's Subsidiaries, seeking to establish the
invalidity or unenforceability thereof (exclusive of questions of interpretation
of any provision thereof), or the Parent Company, the Borrower, or any of the
Borrower's Subsidiaries shall deny that it has any liability or obligation under
any Loan Document;
(n) Any Security Document shall for any reason, fail or cease
(except by reason of lapse of time) to create a valid and perfected and, except
to the extent permitted by the terms hereof or thereof, first-priority Lien on
or Security Interest in any material portion of the Collateral purported to be
covered thereby, and the same, if curable, is not cured within thirty (30) days
from the date of occurrence; or
(o) The Parent Company shall breach the Parent Company Guaranty or
the Stock Pledge Agreement.
Section 8.2 Remedies.
--------
(a) If an Event of Default specified in Section 8.1 hereof (other
than Section 8.1(f) or Section 8.1(g) hereof) shall have occurred and shall be
continuing, the Administrative Agent,
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at the request of the Required Lenders, shall formally declare that an Event of
Default has occurred, and (i) terminate the Commitments and the Letter of Credit
Commitment, and (ii) declare the principal of and interest on the Loans and the
Notes and all other amounts owed to the Lenders and the Administrative Agent
under this Agreement and the Notes to be forthwith due and payable without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived, anything in this Agreement or in the Notes to the contrary
notwithstanding, and the Commitments shall thereupon forthwith terminate, and
all such amounts shall be immediately due and payable.
(b) Upon the occurrence and during the continuance of an Event of
Default specified in Section 8.1(f) or Section 8.1(g) hereof, all principal,
interest and other amounts due hereunder and under the Notes, and all other
Obligations, shall thereupon and concurrently therewith become due and payable
and the Commitments and the Letter of Credit Commitment shall forthwith
terminate and the principal amount of the Loans outstanding hereunder shall bear
interest at the Default Rate, all without any action by the Administrative Agent
or the Lenders or the Required Lenders or the Collateral Agent, and without
presentment, demand, protest or other notice of any kind, all of which are
expressly waived, anything in this Agreement or in the Notes to the contrary
notwithstanding.
(c) Upon acceleration of the Notes, as provided in subsection (a) or
(b) of this Section 8.2, the Collateral Agent, the Issuing Bank, and the Lenders
shall have all of the post-default rights granted to them, or any of them, as
applicable under the Loan Documents or under Applicable Law.
(d) In regard to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of any acceleration of
the Obligations pursuant to the provisions of this Section 8.2, the Borrower
shall promptly upon demand by the Administrative Agent deposit in a Letter of
Credit Reserve Account opened by the Administrative Agent for the benefit of the
Issuing Bank and the Lenders an amount equal to one hundred five percent (105%)
of the aggregate then undrawn and unexpired amount of such Letter of Credit
Obligations. Amounts held in such Letter of Credit Reserve Account shall be
applied by the Administrative Agent to the payment of drafts drawn under such
Letters of Credit, and the unused portion thereof after 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 Notes. Pending the
application of such deposit to the payment of the Obligations, such deposit in
an interest bearing open account or similar available savings
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deposit account and all interest accrued thereon shall be held with such deposit
as additional security for the Reimbursement Obligations. After all such Letters
of Credit shall have expired or been fully drawn upon, all Reimbursement
Obligations shall have been satisfied, and all other Obligations shall have been
paid in full, the balance, if any, in such Letter of Credit Reserve Account
shall be returned to the Borrower. Except as expressly provided hereinabove,
presentment, demand, protest and all other notices of any kind are hereby
expressly waived by the Borrower.
(e) The rights and remedies of the Administrative Agent and the
Lenders hereunder shall be cumulative, and not exclusive.
Section 8.3 Payments Subsequent to Declaration of Event of Default.
------------------------------------------------------
Subsequent to the acceleration of the Loans under Section 8.2 hereof, payments
and prepayments under this Agreement made to any of the Administrative Agent,
the Lenders, or otherwise received by any of such Persons (from realization on
the Collateral for the Obligations or otherwise) shall be paid over to the
Administrative Agent (if necessary) and distributed by the Administrative Agent
as follows:
first, to the reasonable costs and expenses, if any, incurred in connection
-----
with the collection of such payment or prepayment including, without limitation,
any reasonable cost incurred by any of them in connection with the sale or
disposition of any Collateral for the Obligations;
second, to the Lenders and the Issuing Bank for any fees hereunder or under
------
any of the other Loan Documents then due and payable;
third, to damages incurred by the Administrative Agent or any Lender (on a
-----
pro rata basis) by reason of any breach hereof or of any other Loan Document;
--------
fourth, to the Lenders pro rata on the basis of their respective unpaid
------ --------
principal amounts (except as provided in Section 2.2(e)(iv) hereof) and to the
payment of any unpaid interest which may have accrued on the Obligations;
fifth, to the extent of any Letter of Credit Obligations then outstanding,
-----
to the Letter of Credit Reserve Account;
sixth, to the Lenders pro rata until all Advances have been paid in full
----- --------
(and for purposes of this clause, obligations under Interest Hedge Agreements
with the Lenders or the Administrative
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Agent shall be deemed to be Advances) and shall be paid on a pro rata basis with
--------
the Advances;
seventh, to the Lenders pro rata on the basis of their respective unpaid
------- --------
amounts, to the payment of any other unpaid Obligations; and
eighth, upon satisfaction in full of all of the Obligations, to the
------
Borrower or as otherwise required by law.
ARTICLE 9
The Administrative Agent
------------------------
Section 9.1 Appointment and Authorization. Each Lender hereby
-----------------------------
irrevocably appoints and authorizes, and hereby agrees that it will require any
participant, transferee or other assignee of any of its interest in its Loans
and in its Notes irrevocably to appoint and authorize, the Administrative Agent
to take such actions as its agent on its behalf and to exercise such powers
hereunder as are delegated by the terms hereof, together with such powers as are
reasonably incidental thereto. Neither the Administrative Agent nor any of its
directors, officers, employees or agents shall be liable for any action taken or
omitted to be taken by it or them hereunder or in connection herewith, except
for its or their own gross negligence or willful misconduct.
Section 9.2 Interest Holders. The Administrative Agent may treat each
----------------
Lender, or the Person designated in the last notice filed with the
Administrative Agent under this Section, as the holder of all of the interests
of such Lender in its Loans and in its Notes until written notice of transfer,
signed by such Lender (or the Person designated in the last notice filed with
the Administrative Agent) and by the Person designated in such written notice of
transfer, in form and substance satisfactory to the Administrative Agent, shall
have been filed with the Administrative Agent.
Section 9.3 Consultation with Counsel and Required Lenders. The
----------------------------------------------
Administrative Agent may consult with Paul, Hastings, Xxxxxxxx & Xxxxxx,
Atlanta, Georgia, special counsel to the Administrative Agent, or with other
legal counsel selected by it with reasonable care and shall not be liable for
any action taken or suffered by it in good faith in consultation with or at the
direction of the Required Lenders and in reliance on such consultations or
direction.
Section 9.4 Documents. The Administrative Agent shall be
---------
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under no duty to examine, inquire into, or pass upon the validity, effectiveness
or genuineness of this Agreement, any Note, any other Loan Document, or any
instrument, document or communication furnished pursuant hereto or in connection
herewith, and the Administrative Agent shall be entitled to assume that they are
valid, effective and genuine, have been signed or sent by the proper parties and
are what they purport to be.
Section 9.5 Administrative Agent and Affiliates. With respect to the
-----------------------------------
Commitments and the Loans, The Toronto-Dominion Bank as an Affiliate of the
Administrative Agent shall have the same rights and powers hereunder as any
other Lender and Affiliates of the Administrative Agent may accept deposits
from, lend money to and generally engage in any kind of business with the
Borrower, any of its Subsidiaries or any Affiliates of, or persons doing
business with, the Borrower, as if it were not affiliated with the
Administrative Agent and without any obligation to account therefor.
Section 9.6 Responsibility of the Administrative Agent. The duties and
------------------------------------------
obligations of the Administrative Agent under this Agreement are only those
expressly set forth in this Agreement. The Administrative Agent shall be
entitled to assume that no Default has occurred and is continuing unless it has
actual knowledge, or has been notified by the Borrower, of such fact, or has
been notified by a Lender that such Lender considers that a Default has occurred
and is continuing, and such Lender shall specify in detail the nature thereof in
writing. The Administrative Agent shall not be liable hereunder for any action
taken or omitted to be taken, except for its own gross negligence or willful
misconduct as determined by a final non-appealable order of a court of competent
jurisdiction. The Administrative Agent shall provide each Lender with copies of
such documents received from the Borrower as such Lender may reasonably request.
Section 9.7 Collateral.
----------
(a) The Collateral Agent is hereby authorized to act on behalf of the
Lenders and the Issuing Bank, in its own capacity and through other agents and
sub-agents appointed by it, under the Security Documents, provided that the
Collateral Agent shall not agree to the release of any collateral, except as set
forth in Section 9.7(b) or in compliance with Section 11.12 hereof.
(b) Each Lender and the Issuing Bank hereby directs the Collateral
Agent to release any Lien held by the Collateral Agent for the benefit of the
Lenders and the Issuing Bank: (i) against all of the Collateral, upon final and
indefeasible
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payment in full of the Obligations and termination of this Agreement; (ii)
against any part of the Collateral sold in connection with a Permitted Asset
Sale under Section 7.4 hereof; and (iii) granted by the Borrower or any
Subsidiary pursuant to the Security Agreement, the Subsidiary Security
Agreement, or the Mortgages (as such terms are defined in the Prior Loan
Agreement). Each Lender and the Issuing Bank hereby directs the Collateral Agent
to execute and deliver or file such termination and partial release statements
and do such other things as are necessary to release Liens to be released
pursuant to this Section 9.7(b) promptly upon the effectiveness of any such
release.
Section 9.8 Action by Administrative Agent.
------------------------------
(a) The Administrative Agent shall be entitled to use its discretion
with respect to exercising or refraining from exercising any rights which may be
vested in it by, and with respect to taking or refraining from taking any action
or actions which it may be able to take under or in respect of, this Agreement,
unless the Administrative Agent shall have been instructed by the Required
Lenders or all of the Lenders, as the case may be, to exercise or refrain from
exercising such rights or to take or refrain from taking such action; provided
that the Administrative Agent shall not exercise any rights under Section 8.2(a)
of this Agreement without the request of the Required Lenders. The
Administrative Agent shall incur no liability under or in respect of this
Agreement with respect to anything which it may do or refrain from doing in the
reasonable exercise of its judgment or which may seem to it to be necessary or
desirable in the circumstances, except for its gross negligence or willful
misconduct.
(b) The Administrative Agent shall not be liable to the Lenders or to
any Lender in acting or refraining from acting under this Agreement in
accordance with the instructions of the Required Lenders, or all of the Lenders,
as the case may be, and any action taken or failure to act pursuant to such
instructions shall be binding on all Lenders.
Section 9.9 Notice of Default. In the event that the Administrative
-----------------
Agent or any Lender shall acquire actual knowledge, or shall have been notified,
of any Default, the Administrative Agent or such Lender shall promptly notify
the Lenders and the Administrative Agent, and the Administrative Agent shall
take such action and assert such rights under this Agreement as the Required
Lenders or all of the Lenders, as the case may be, shall request in writing, and
the Administrative Agent shall not be subject to any liability by reason of its
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acting pursuant to any such request. If the Required Lenders, or any or all of
the Lenders, as the case may be, shall fail to request the Administrative Agent
to take action or to assert rights under this Agreement in respect of any
Default within ten (10) days after their receipt of the notice of any Default
from the Administrative Agent, or shall request inconsistent action with respect
to such Default, the Administrative Agent may, but shall not be required to,
take such action and assert such rights (other than rights under Article 8
hereof) as it deems in its discretion to be advisable for the protection of the
Lenders, except that, if the Required Lenders, or any or all of the Lenders, as
the case may be, have instructed the Administrative Agent not to take such
action or assert such right, in no event shall the Administrative Agent act
contrary to such instructions.
Section 9.10 Responsibility Disclaimed. The Administrative Agent shall be
-------------------------
under no liability or responsibility whatsoever as Administrative Agent:
(a) To the Borrower or any other person or entity as a consequence of
any failure or delay in performance by or any breach by any Lender or Lenders of
any of its or their obligations under this Agreement;
(b) To any Lender or Lenders, as a consequence of any failure or delay
in performance by, or any breach by, (i) the Borrower of any of its obligations
under this Agreement or the Notes or any other Loan Document, or (ii) any other
obligor under any other Loan Document; or
(c) To any Lender or Lenders, for any statements, representations or
warranties in this Agreement, or any other document contemplated by this
Agreement, or any information provided pursuant to this Agreement, any other
Loan Document, or any other document contemplated by this Agreement, or for the
validity, effectiveness, enforceability or sufficiency of this Agreement, the
Notes, any other Loan Document, or any other document contemplated by this
Agreement.
Section 9.11 Indemnification. The Lenders agree to indemnify the
---------------
Administrative Agent (to the extent not reimbursed by the Borrower) pro-rata
--------
according to their respective Commitment Ratios, from and against any and all
liabilities, obligations, losses (other than the loss of principal and interest
hereunder), damages, penalties, actions, judgments, suits, costs, expenses
(including fees and expenses of experts, agents, consultants and counsel), or
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by or asserted against the Administrative Agent in any way relating to
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or arising out of this Agreement, any other Loan Document, or any other document
contemplated by this Agreement or any action taken or omitted by the
Administrative Agent under this Agreement, any other Loan Document, or any other
document contemplated by this Agreement, except that no Lender shall be liable
to the Administrative Agent for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses, or
disbursements resulting from the gross negligence or willful misconduct of the
Administrative Agent that is determined by final, non-appealable judicial order
of a court having jurisdiction over the subject matter.
Section 9.12 Credit Decision. Each Lender represents and warrants to
---------------
each other and to the Administrative Agent that:
(a) In making its decision to enter into this Agreement and to make
its Advances it has independently taken whatever steps it considers necessary to
evaluate the financial condition and affairs of the Borrower and that it has
made an independent credit judgment, and that it has not relied upon the
Administrative Agent or information provided by the Administrative Agent (other
than information provided to the Administrative Agent by the Borrower and
forwarded by the Administrative Agent to the Lenders); and
(b) So long as any portion of the Loans remains outstanding, it will
continue to make its own independent evaluation of the financial condition and
affairs of the Borrower.
Section 9.13 Successor Administrative Agent. Subject to the appointment
------------------------------
and acceptance of a successor Administrative Agent as provided below, the
Administrative Agent may resign at any time by giving written notice thereof to
the Lenders and the Borrower and may be removed at any time with or without
cause by the Required Lenders. Upon any such resignation or removal, the
Required Lenders shall have the right to appoint a successor Administrative
Agent, subject to approval of such successor Administrative Agent by the
Borrower (provided no Default then exists), which approval shall not be
unreasonably withheld. If no successor Administrative Agent shall have been so
appointed by the Required Lenders and shall have accepted such appointment
within thirty (30) days after the retiring Administrative Agent's giving of
notice of resignation or the Required Lenders' removal of the retiring
Administrative Agent, then the retiring Administrative Agent may, on behalf of
the Lenders, appoint a successor Administrative Agent which shall be any Lender
or a commercial bank organized under the laws of the United States of America or
any political subdivision thereof which has combined
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capital and reserves in excess of $250,000,000. Any such successor
Administrative Agent must also receive the approval of the Borrower (provided no
Default then exists hereunder), which approval shall not be unreasonably
withheld. Upon the acceptance of any appointment as Administrative Agent
hereunder by a successor Administrative Agent, such successor Administrative
Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges, duties and obligations of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. After any retiring Administrative Agent's resignation or
removal hereunder as Administrative Agent, the provisions of this Article shall
continue in effect for its benefit in respect of any actions taken or omitted to
be taken by it while it was acting as the Administrative Agent.
Section 9.14 Delegation of Duties.
--------------------
(a) In General. The Administrative Agent may execute any of its duties
----------
under the Loan Documents by or through agents or attorneys selected by it using
reasonable care, and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrative Agent shall not be
responsible to any Lender for the negligence or misconduct of any agents or
attorneys selected by it with reasonable care.
(b) Communications Act. At any time or times deemed necessary or
------------------
advisable by the Administrative Agent or the Required Lenders, as the case may
be, including for purposes of complying with Section 310(b) of the
Communications Act and for purposes of enforcing any right or remedy hereunder,
the Administrative Agent, using reasonable care, may appoint one or more Persons
to act as a separate agent or co-agent to the full extent permitted by law and
in accordance with such instructions and directions as the Administrative Agent
may specify. All provisions of this Agreement which are for the benefit of the
Administrative Agent shall extend to and apply to each separate agent or co-
agent appointed by the Administrative Agent using reasonable care pursuant to
the foregoing provision. The powers of any separate agent or co-agent shall not
exceed those of the Administrative Agent hereunder.
Section 9.15 Administrative Agent May File Proofs of Claim. The
---------------------------------------------
Administrative Agent may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the
Administrative Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent, its agents,
financial advisors and counsel), the Issuing Bank and the
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Lenders allowed in any judicial proceedings relative to the Borrower or any of
the Borrower's Subsidiaries, or any of their respective creditors or property,
and shall be entitled and empowered to collect, receive and distribute any
monies, securities or other property payable or deliverable on any such claims
and any custodian in any such judicial proceedings is hereby authorized by each
Lender to make such payments to the Administrative Agent and, in the event that
the Administrative Agent shall consent to the making of such payments directly
to the Lenders and the Issuing Bank, to pay to the Administrative Agent any
amount due for the reasonable compensation, expenses, disbursements and advances
of the Administrative Agent, its agents, financial advisors and counsel, and any
other amounts due the Administrative Agent under Section 11.2 hereof. Nothing
contained in this Agreement or the other Loan Documents shall be deemed to
authorize the Administrative Agent to authorize or consent to or accept or adopt
on behalf of any Lender any plan of reorganization, arrangement, adjustment or
composition affecting the Notes, the Letters of Credit or the rights of any
holder thereof, or to authorize the Administrative Agent to vote in respect of
the claim of any Lender or any Issuing Bank in any such proceeding.
ARTICLE 10
Change in Circumstances
Affecting Eurodollar Advances
-----------------------------
Section 10.1 Eurodollar Basis Determination Inadequate or Unfair. If
---------------------------------------------------
with respect to any proposed Eurodollar Advance for any Interest Period, the
Administrative Agent determines after consultation with the Lenders that
deposits in dollars (in the applicable amount) are not being offered to each of
the Lenders in the relevant market for such Interest Period, the Administrative
Agent shall forthwith give notice thereof to the Borrower and the Lenders,
whereupon until the Administrative Agent notifies the Borrower that the
circumstances giving rise to such situation no longer exist, the obligations of
any affected Lender to make such type of Eurodollar Advances shall be suspended.
Section 10.2 Illegality. If, after the date hereof, the adoption of any
----------
applicable law, rule or regulation, or any change therein (whether adopted
before or after the Agreement Date), or any interpretation or change in
interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any Lender with any directive (whether or not
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having the force of law) of any such authority, central bank or comparable
agency, shall make it unlawful or impossible for any Lender to make, maintain or
fund its Eurodollar Advances, such Lender shall so notify the Administrative
Agent, and the Administrative Agent shall forthwith give notice thereof to the
other Lenders and the Borrower. Before giving any notice to the Administrative
Agent pursuant to this Section 10.2, such Lender shall designate a different
lending office if such designation will avoid the need for giving such notice
and will not, in the sole judgment of such Lender, be otherwise materially
disadvantageous to such Lender. Upon receipt of such notice, notwithstanding
anything contained in Article 2 hereof, the Borrower shall repay in full the
then outstanding principal amount of each affected Eurodollar Advance of such
Lender, together with accrued interest thereon, on either (a) the last day of
the then current Interest Period applicable to such affected Eurodollar Advances
if such Lender may lawfully continue to maintain and fund such Eurodollar
Advance to such day or (b) immediately if such Lender may not lawfully continue
to fund and maintain such affected Eurodollar Advances to such day. Concurrently
with repaying each affected Eurodollar Advance of such Lender, notwithstanding
anything contained in Article 2 or Article 3 hereof, the Borrower may borrow a
Prime Rate Advance from such Lender, and such Lender shall make such Advance, if
so requested, in an amount such that the outstanding principal amount of the
affected Note or Notes held by such Lender shall equal the outstanding principal
amount of such Note or Notes immediately prior to such repayment.
Section 10.3 Increased Costs.
---------------
(a) If, after the date hereof, the adoption of any applicable law,
rule or regulation, or any change therein (whether adopted before or after the
Agreement Date), or any interpretation or change in interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof or compliance
by any Lender with any directive (whether or not having the force of law) of any
such authority, central bank or comparable agency:
(1) shall subject any Lender to any tax, duty or other charge
with respect to its obligation to make Eurodollar Advances, or its
Eurodollar Advances, or shall change the basis of taxation of payments to
any Lender of the principal of or interest on its Eurodollar Advances or in
respect of any other amounts due under this Agreement in respect of its
Eurodollar Advances or its obligation to make Eurodollar Advances (except
for changes in the rate or
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method of calculation of tax on the overall net income of such Lender); or
(2) shall impose, modify or deem applicable any reserve
(including, without limitation, any imposed by the Board of Governors of
the Federal Reserve System, but excluding any included in an applicable
Eurodollar Reserve Percentage), special deposit, capital adequacy,
assessment or other requirement or condition against assets of, deposits
with or for the account of, or commitments or credit extended by, any
Lender or shall impose on any Lender or the eurodollar interbank borrowing
market any other condition affecting its obligation to make such
Eurodollar Advances or its Eurodollar Advances;
and the result of any of the foregoing is to increase the cost to such Lender of
making or maintaining any such Eurodollar Advances, or to reduce the amount of
any sum received or receivable by such Lender under this Agreement or under any
of its Notes with respect thereto, then, within fifteen (15) days after demand
by such Lender, the Borrower agrees to pay to such Lender such additional amount
or amounts (but without duplicate payment of amounts due under Section 2.12
hereof) as will compensate such Lender for such increased costs or reduction.
Each Lender will promptly notify the Borrower and the Administrative Agent of
any event of which it has knowledge, occurring after the date hereof, which will
entitle such Lender to compensation pursuant to this Section 10.3 and will
designate a different lending office if such designation will avoid the need
for, or reduce the amount of, such compensation and will not, in the sole
judgment of such Lender made in good faith, be otherwise disadvantageous to such
Lender.
(b) A certificate of any Lender claiming compensation under this
Section 10.3 and setting forth the additional amount or amounts to be paid to it
hereunder and calculations therefor shall be conclusive in the absence of
manifest error. In determining such amount, such Lender may use any reasonable
averaging and attribution methods. If any Lender demands compensation under this
Section 10.3, the Borrower may at any time, upon at least five (5) Business
Days' prior notice to such Lender, prepay in full the then outstanding affected
Eurodollar Advances of such Lender, together with accrued interest thereon to
the date of prepayment, along with any reimbursement required under Section 2.10
hereof and compensation pursuant to this Section 10.3. Concurrently with
prepaying such Eurodollar Advances the Borrower may borrow a Prime Rate Advance
from such Lender, and such Lender shall, if so requested, make such Advance in
an amount such that the outstanding principal amount of the
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affected Note or Notes held by such Lender shall equal the outstanding principal
amount of such Note or Notes immediately prior to such prepayment.
Section 10.4 Effect On Other Advances. If notice has been given pursuant
------------------------
to Section 10.1, 10.2 or 10.3 hereof suspending the obligation of any Lender to
make a Eurodollar Advance, or requiring Eurodollar Advances of any Lender to be
repaid or prepaid, then, unless and until such Lender notifies the Borrower that
the circumstances giving rise to such repayment no longer apply, all Advances
which would otherwise be made by such Lender as the type of Eurodollar Advances
affected shall be made instead as Prime Rate Advances.
ARTICLE 11
Miscellaneous
-------------
Section 11.1 Notices.
-------
(a) All notices and other communications under this Agreement shall be
in writing and shall be deemed to have been given three (3) days after deposit
in the mail, designated as certified mail, return receipt requested, post-
prepaid, or one (1) day after being entrusted to a reputable commercial
overnight delivery service, or when sent by telecopy addressed to the party to
which such notice is directed at its address determined as provided in this
Section 11.1. All notices and other communications under this Agreement shall be
given to the parties hereto at the following addresses:
(i) If to the Borrower, to it at:
Evergreen Media Corporation of Los Angeles
000 Xxxx Xxx Xxxxxxx Xxxxxxxxx
Xxxxxx, Xxxxx 00000
Attn: Xx. Xxxxx X. Xxxxxxxx, President and
Chief Executive Officer
with a copy to:
Xx. Xxxxxxx Xxxxxx
Xx. Xxxx Xxxxxxxx
Evergreen Media Corporation of Los Angeles
000 Xxxx Xxx Xxxxxxx Xxxxxxxxx
Xxxxxx, Xxxxx 00000
and to:
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Xxxx X. Xxxxxx, Xx., Esquire
Xxxxxx & Xxxxxxx
0000 Xxxxxxxxxxxx Xxxxxx, X.X.
Xxxxx 0000
Xxxxxxxxxx, XX 00000-0000
(ii) If to the Administrative Agent
(or the Collateral Agent), to it
at:
Toronto Dominion (Texas), Inc.
000 Xxxxxx
Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attn: Agency Department
with a copy to:
The Toronto-Dominion Bank
USA Division
00 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000-0000
Attn: Xx. Xxxxxx Xxxxx
(iii) If to the Lenders or the Issuing
Bank, to them at the addresses
set forth on Schedule 9 attached
hereto.
Copies shall be provided to persons other than parties hereto only in the case
of notices under Article 8 hereof.
(b) Any party hereto may change the address to which notices shall be
directed under this Section 11.1 by giving ten (10) days' written notice of such
change to the other parties.
Section 11.2 Expenses. The Borrower will promptly pay, or reimburse:
--------
(a) all out-of-pocket expenses of the Administrative Agent in
connection with the preparation, negotiation, execution and delivery of this
Agreement and the other Loan Documents, and the transactions contemplated
hereunder and thereunder and the making of the initial Advance hereunder
(whether or not such Advance is made), including, but not limited to, the
reasonable fees and disbursements of Paul, Hastings, Xxxxxxxx & Xxxxxx, special
counsel for the Administrative Agent;
(b) all out-of-pocket expenses (but not overhead) of
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the Administrative Agent (whether acting in its capacity as Administrative Agent
or Collateral Agent) in connection with the administration of the transactions
contemplated in this Agreement or the other Loan Documents, the restructuring,
refinancing and "work out" of such transactions, and the preparation,
negotiation, execution and delivery of any waiver, amendment or consent by the
Administrative Agent and the Lenders relating to this Agreement or the other
Loan Documents, including, but not limited to, the reasonable fees and
disbursements of any experts, agents or consultants and of special counsel for
the Administrative Agent; and
(c) all out-of-pocket costs and expenses of obtaining performance
under this Agreement or the other Loan Documents and all out-of-pocket costs and
expenses of collection if an Event of Default occurs in the payment of the
Notes, which in each case shall include fees and out-of-pocket expenses of
special counsel for the Administrative Agent (whether acting in its capacity as
Administrative Agent or Collateral Agent), and the fees and out-of-pocket
expenses of counsel and administrative expenses for each Lender and the Issuing
Bank.
Section 11.3 Waivers. The rights and remedies of the Administrative
-------
Agent, the Collateral Agent and the Lenders under this Agreement and the other
Loan Documents shall be cumulative and not exclusive of any rights or remedies
which they would otherwise have. No failure or delay by the Administrative
Agent, the Collateral Agent, the Required Lenders, or the Lenders, in exercising
any right, shall operate as a waiver of such right. The Administrative Agent and
the Lenders expressly reserve the right to require strict compliance with the
terms of this Agreement in connection with any future funding of a request for
an Advance. In the event the Lenders decide to fund a request for an Advance at
a time when the Borrower is not in strict compliance with the terms of this
Agreement, such decision by the Lenders shall not be deemed to constitute an
undertaking by the Lenders to fund any further requests for Advances or preclude
the Lenders or the Administrative Agent or the Collateral Agent from exercising
any rights available under the Loan Documents or at law or equity. Any waiver or
indulgence granted by the Administrative Agent, the Lenders, or the Required
Lenders shall not constitute a modification of this Agreement, except to the
extent expressly provided in such waiver or indulgence, or constitute a course
of dealing at variance with the terms of this Agreement such as to require
further notice of their intent to require strict adherence to the terms of this
Agreement in the future. Any such action shall not in any way affect the ability
of the Lenders or the Issuing Bank, acting through the Collateral Agent with
respect to the Collateral, to exercise any rights
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available to them under this Agreement or any other Loan Document relating to
the Borrower.
Section 11.4 Set-Off. In addition to any rights now or hereafter granted
-------
under Applicable Law and not by way of limitation of any such rights, upon the
occurrence of a Default and during the continuation thereof, the Lenders and the
Administrative Agent are hereby authorized by the Borrower at any time or from
time to time, without notice to the Borrower or to any other Person, any such
notice being hereby expressly waived, to set off and to appropriate and to apply
any and all deposits (general or special, time or demand, including, but not
limited to, Indebtedness evidenced by certificates of deposit, in each case
whether matured or unmatured) and any other Indebtedness at any time held or
owing by the Lenders and the Administrative Agent, to or for the credit or the
account of the Borrower or any of its Subsidiaries, against and on account of
the obligations and liabilities of the Borrower to the Lenders and the
Administrative Agent, including, but not limited to, all Obligations and any
other claims of any nature or description arising out of or connected with this
Agreement, the Notes or any other Loan Document, irrespective of whether (a) the
Lenders or the Administrative Agent shall have made any demand hereunder or (b)
the Lenders or the Administrative Agent shall have declared the principal of and
interest on the Loans and other amounts due hereunder to be due and payable as
permitted by Section 8.2 hereof and although such obligations and liabilities or
any of them, shall be contingent or unmatured. Any sums obtained by any Lender
shall be turned over forthwith to the Administrative Agent, for application to
the Obligations as provided in this Agreement. Upon direction by the
Administrative Agent with the consent of the Required Lenders each Lender
holding deposits of the Borrower or any of its Subsidiaries shall exercise its
set-off rights as so directed.
Section 11.5 Assignment.
----------
(a) The Borrower may not assign or transfer any of its rights or
obligations hereunder without the prior written consent of each of the Lenders.
(b) Each Lender may freely enter into participation agreements with
respect to or otherwise grant participations in, or sell or assign the
Indebtedness of the Borrower outstanding pursuant to this Agreement and the
Notes on a pro rata basis among the Term Loan and the Revolving Loans and
--------
Commitments in accordance with such Lender's initial allocation; provided,
--------
however, that (i) all assignments (other than assignments described in clause
-------
(iv) below) and participations shall be in
-104-
the minimum principal amount of $5,000,000 and in integral multiples of
$1,000,000 in excess thereof, (ii) all participations by any Lender may not
exceed in the aggregate fifty percent (50%) of its initial pro rata share of the
Commitment at the time it became a Lender hereunder, (iii) subject to clause
(iv) below, no Lender shall sell or assign (other than grants of participations
in) all or any portion of such Indebtedness and the Commitments without the
prior written consents of each of the Borrower and the Administrative Agent
(after not less than five (5) days prior written notice), which consents shall
not be unreasonably withheld, and (iv) each Lender may sell or assign up to one
hundred percent (100%) of its Loans to its own Affiliates, or to any Federal
Reserve Bank at any time without the consent of the Borrower. Each assignment
(other than any assignment to a Federal Reserve Bank) shall be made by way of an
Assignment and Assumption Agreement in substantially the form attached hereto as
Exhibit Q, and shall be accompanied by a $3,500 assignment fee payable by the
---------
assigning Lender to the Administrative Agent as a processing fee. The Borrower
hereby agrees that any assignee or transferee (other than a participant) of all
or any portion of any amount owed by the Borrower under this Agreement and the
Notes (A) shall be entitled to the benefits of the provisions of this Agreement
as fully as though it were a Lender hereunder, and (B) may exercise any and all
rights of banker's lien, set-off or counterclaim with respect to any and all
amounts owed by the Borrower to such assignee or transferee as fully as if such
assignee or transferee had made the Loans in the amount of the obligation which
is assigned or transferred to it. Each Lender agrees that (x) except as
expressly provided herein, no participation agreement permitted hereunder shall
confer any rights under this Agreement or under any other Loan Document to any
purchaser thereof, (y) no Person to which a participation is issued shall have
any right to exercise or enforce any rights under this Agreement or any other
Loan Document, and (z) any participation agreement permitted hereunder shall (1)
except as provided in the second succeeding sentence expressly provide that the
issuer thereof will at all times retain the right to vote or take any other
actions with respect to its interests hereunder for the full Commitment Ratio
assigned to such issuing Lender hereunder, both before and after the occurrence
of any Default, (2) contain an express representation by the participant that it
is purchasing such participation for its own account and not as agent or trustee
for any Plan or trust, and (3) expressly prohibit reassignment of any
participation to any Person other than the Administrative Agent or any of the
Lenders. No participation shall relieve any issuing Lender from any of its
obligations under this Agreement, and all actions hereunder shall be conducted
as if no such participation had been granted. Any
-105-
participation agreement permitted hereunder may provide that the issuing Lender
will not, without the consent of the participant, agree to any modification,
amendment or waiver of this Agreement which would (a) reduce the principal of or
rate of interest on the Loans, (b) postpone the date fixed for any payment of
principal of or interest on the Loans or for any Commitment reduction, (c)
increase the amount of the participant's Commitment or its Commitment Ratio
(determined as if such participant were a direct Lender hereunder), (d) reduce
the amount, or delay the terms for payment of, fees due to the Lenders
hereunder, or (e) release any Collateral for the Loans, if such release requires
the unanimous consent of the Lenders hereunder. In the event of any proposed
assignment hereunder to a prospective Lender to whom Section 2.13 hereof would
apply, the assigning Lender shall obtain the appropriate Internal Revenue
Service forms from such proposed assignee prior to the consummation of the
assignment, and provide such forms to the Borrower and the Administrative Agent.
(c) In the event that: (i) any Lender fails or refuses to fund its
portion of an Advance hereunder at a time when the conditions precedent to an
Advance have been satisfied, or (ii) any Lender (but no other Lender) requests
compensation from the Borrower under Section 2.12 or Article 10 hereof, or (iii)
any Lender to whom Section 2.13 hereof applies fails to supply the forms
described or otherwise causes the Borrower to withhold sums in respect of such
Lender's possible United States income tax liability, so long as no Default has
occurred and is then continuing, the Borrower shall be entitled to arrange
(subject to the Administrative Agent's prior written consent as to the identity
of any prospective assignee) for the purchase of such Lender's interests in the
Indebtedness outstanding hereunder and the assumption of its Commitments by any
of the other Lenders or by another third party financial institution meeting the
requirements for assignees of the Lenders set forth above. The purchase price
for the interest being purchased shall be the outstanding principal balance of
such Lender's interest plus any outstanding accrued interest and fees due and
payable to such Lender. Any costs incurred pursuant to and payable under Section
2.10, Section 2.12, Section 2.13 or Article 10 hereof at the time of or prior to
the purchase of such Lender's interests in connection with the Borrower's
exercise of its rights under this Section 11.5(c) shall be borne by the Borrower
except in the case of clause (i) above.
(d) Except as specifically set forth in Section 11.5(b) hereof,
nothing in this Agreement or the Notes, expressed or implied, is intended to or
shall confer on any person other than the respective parties hereto and thereto
and
-106-
their successors and assignees permitted hereunder and thereunder any benefit or
any legal or equitable right, remedy or other claim under this Agreement or the
Notes.
(e) The provisions of this Section 11.5 shall not apply to any
purchase of participations among the Lenders pursuant to Section 2.11(b) hereof.
Section 11.6 Accounting Principles. All references in this Agreement to
---------------------
GAAP shall be to such principles as in effect from time to time.
All accounting terms used herein without definition shall be used as defined
under GAAP. All references to the financial statements of the Borrower and to
Operating Cash Flow, Senior Debt, Pro Forma Fixed Charges, Broadcast Cash Flow,
Cash Interest Expense, and Total Debt Service Requirements shall be deemed to
refer to such items of the Borrower and its Subsidiaries, on a fully
consolidated basis.
Section 11.7 Counterparts. This Agreement may be executed in any number
------------
of counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.
Section 11.8 Governing Law. This Agreement and the Notes shall be
-------------
construed in accordance with and governed by the internal laws of the State of
New York applicable to agreements made and to be performed wholly within the
State of New York. If any action or proceeding shall be brought by the
Collateral Agent or any Lender in order to enforce any right or remedy under
this Agreement or under any Note, the Borrower hereby consents and will, and the
Borrower will cause each Subsidiary to, submit to the jurisdiction of any state
or federal court of competent jurisdiction sitting within the area comprising
the Southern District of New York on the date of this Agreement. The Borrower,
for itself and on behalf of its Subsidiaries, hereby agrees that service of the
summons and complaint and all other process which may be served in any such
suit, action or proceeding may be effected by mailing by registered mail a copy
of such process to the offices of the Borrower at the address given in Section
11.1 hereof and that personal service of process shall not be required. Nothing
herein shall be construed to prohibit service of process by any other method
permitted by law, or the bringing of any suit, action or proceeding in any other
jurisdiction. The Borrower agrees that final judgment in such suit, action or
proceeding shall be conclusive and may be enforced in any other jurisdiction by
suit on the judgment or in any other manner provided by law.
Section 11.9 Severability. Any provision of this
------------
-107-
Agreement which is prohibited or unenforceable shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof in that jurisdiction or affecting the validity or
enforceability of such provision in any other jurisdiction.
Section 11.10 Interest.
--------
(a) In no event shall the amount of interest due or payable
hereunder or under the Notes exceed the maximum rate of interest allowed by
Applicable Law, and in the event any such payment is inadvertently made by the
Borrower or inadvertently received by the Administrative Agent or any Lender,
then such excess sum shall be credited as a payment of principal, unless the
Borrower shall notify the Administrative Agent or such Lender in writing that it
elects to have such excess sum returned forthwith. It is the express intent
hereof that the Borrower not pay and the Administrative Agent or the Lenders not
receive, directly or indirectly in any manner whatsoever, interest in excess of
that which may legally be paid by the Borrower under Applicable Law.
(b) Notwithstanding the use by the Lenders of the Prime Rate and the
Eurodollar Rate as reference rates for the determination of interest on the
Loans, the Lenders shall be under no obligation to obtain funds from any
particular source in order to charge interest to the Borrower at interest rates
related to such reference rates.
Section 11.11 Table of Contents and Headings. The Table of Contents and
------------------------------
the headings of the various subdivisions used in this Agreement are for
convenience only and shall not in any way modify or amend any of the terms or
provisions hereof, or be used in connection with the interpretation of any
provision hereof.
Section 11.12 Amendment and Waiver. Neither this Agreement nor any term
--------------------
hereof may be amended orally, nor may any provision hereof be waived orally but
only by an instrument in writing signed by the Required Lenders and, in the case
of an amendment, by the Borrower, except that in the event of (a) any change in
the amount of the Commitments, or in any Lender's Commitment Ratio (other than
by way of assignment pursuant to Section 11.5 hereof or by way of the Additional
Facility Indebtedness), in either case, other than with respect to the increase
in the Commitments on the Merger Date, (b) any delay or extension in the terms
of repayment of the Term Loans or the Revolving Loans, or in the reduction of
the Revolving Loan Commitment or the Term Loan Commitment provided in Section
2.4 or Section 2.7 hereof, (c) any reduction in principal, interest, fees or
other amounts
-108-
due hereunder or postponement of any payment due hereunder or reduction in the
amount of any scheduled reduction of the Revolving Loan Commitment or the Term
Loan Commitment, (d) any release of any portion of the Collateral, except in
connection with a Permitted Asset Sale under Section 7.4, or in connection
Section 9.7(b) hereof (in each such case, such release shall require no further
approval by the Lenders), (e) any waiver of any Default due to the failure by
the Borrower to pay any sum due to any of the Lenders hereunder, (f) any release
of any Guaranty of all or any portion of the Obligations, except in connection
with a merger, sale or other disposition otherwise permitted hereunder (in which
case, such release shall require no further approval by the Lenders), (g) the
incurrence of any secured Indebtedness for Borrowed Money (other than secured
Indebtedness permitted under this Agreement as in effect on the date hereof), or
(h) any amendment of this Section 11.12, or change to the definition of Required
Lenders, or any provision requiring the consent, approval, acceptance, or
satisfaction of all of the Lenders, any amendment or waiver or consent may be
made only by an instrument in writing signed by each of the Lenders and, in the
case of an amendment, by the Borrower. Any amendment to any provision hereunder
governing the rights, obligations or liabilities of the Administrative Agent in
its capacity as such, may be made only by an instrument in writing signed by the
Administrative Agent and by each of the Lenders.
Section 11.3 Entire Agreement. Except as otherwise expressly provided
----------------
herein, this Agreement and the other documents described or contemplated herein
embody the entire Agreement and understanding among the parties hereto and
thereto and supersede all prior agreements and understandings relating to the
subject matter hereof and thereof.
Section 11.4 Other Relationships. No relationship created hereunder or
-------------------
under any other Loan Document shall in any way affect the ability of the
Administrative Agent, the Collateral Agent and each Lender or their respective
Affiliates to enter into or maintain business relationships with the Borrower or
any of its Affiliates beyond the relationships specifically contemplated by this
Agreement and the other Loan Documents.
Section 11.5 Directly or Indirectly. If any provision in this Agreement
----------------------
refers to any action taken or to be taken by any Person, or which such Person is
prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person, whether or not expressly
specified in such provision.
-109-
Section 11.16 Reliance on and Survival of Various Provisions. All
----------------------------------------------
covenants, agreements, statements, representations and warranties made herein or
in any certificate delivered pursuant hereto (i) shall be deemed to be material
and to have been relied upon by the Administrative Agent and each of the Lenders
notwithstanding any investigation heretofore or hereafter made by them, and (ii)
shall survive the execution and delivery of the Notes and shall continue in full
force and effect so long as any Note is outstanding and unpaid. Any right to
indemnification hereunder, including, without limitation, rights pursuant to
Sections 2.10, 2.12, 5.10, 10.3 and 11.2 hereof accruing to parties and former
parties to this Agreement, shall survive the termination of this Agreement and
the payment and performance of all other Obligations; provided, however that
upon the full payment and performance of all Obligations other than such
indemnification obligations, the Administrative Agent shall instruct the
Collateral Agent to take such reasonable measures as may be requested by the
Borrower to release the Liens of the Collateral Agent, the Administrative Agent
and the Lenders in the Collateral.
Section 11.17 Senior Debt. The Indebtedness of the Borrower evidenced by
-----------
the Notes is secured by the Security Documents and is intended by the parties
hereto to be in parity with the Interest Hedge Agreements in effect from time to
time between the Borrower and the Administrative Agent or any Lender.
Section 11.18 Obligations Several. The obligations of the Administrative
-------------------
Agent and each of the Lenders hereunder are several, not joint.
ARTICLE 12
Waiver of Jury Trial
--------------------
Section 12.1 Waiver of Jury Trial. THE BORROWER, FOR ITSELF AND ON BEHALF
--------------------
OF ITS SUBSIDIARIES, AND THE ADMINISTRATIVE AGENT, THE ISSUING BANK AND EACH
LENDER HEREBY AGREE TO WAIVE AND HEREBY WAIVE THE RIGHT TO A TRIAL BY JURY IN
ANY COURT AND IN ANY ACTION OR PROCEEDING OF ANY TYPE IN WHICH THE BORROWER, ANY
OF THE BORROWER'S SUBSIDIARIES, ANY OF THE LENDERS, THE ISSUING BANK, THE
COLLATERAL AGENT, THE ADMINISTRATIVE AGENT, OR ANY OF THEIR RESPECTIVE
SUCCESSORS OR ASSIGNS IS A PARTY, AS TO ALL MATTERS AND THINGS ARISING DIRECTLY
OR INDIRECTLY OUT OF THIS AGREEMENT, ANY OF THE NOTES OR THE OTHER LOAN
DOCUMENTS AND THE RELATIONS AMONG THE PARTIES LISTED IN THIS SECTION 12.1.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
-110-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by
their duly authorized officers, all as of the day and year first above written.
BORROWER: EVERGREEN MEDIA CORPORATION OF
LOS ANGELES, a Delaware corporation
By:
-----------------------------------------
Its:
---------------------------------
Attest:
-------------------------------------
Its:
---------------------------------
ADMINISTRATIVE AGENT: TORONTO DOMINION (TEXAS), INC., a
Delaware corporation
By:
-----------------------------------------
Its: Vice President
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC., a
Delaware corporation
By:
-----------------------------------------
Its: Vice President
ISSUING BANK: THE TORONTO-DOMINION BANK
By:
-----------------------------------------
Its: Manager
MANAGING TORONTO DOMINION (TEXAS), INC., a
AGENTS AND Delaware corporation
LENDERS:
By:
-----------------------------------------
Its: Vice President
[SIGNATURES CONTINUED ON NEXT PAGE]
THE BANK OF NEW YORK
By:
-----------------------------------------
Its:
---------------------------------
NATIONSBANK OF TEXAS, N.A.
By:
-----------------------------------------
Its:
---------------------------------
UNION BANK OF CALIFORNIA
By:
-----------------------------------------
Its:
---------------------------------
BANKERS TRUST COMPANY
By:
-----------------------------------------
Its:
---------------------------------
LENDERS: XXXXXXX XXXXX SENIOR FLOATING RATE FUND, INC.
By:
-----------------------------------------
Its:
---------------------------------
XXX XXXXXX AMERICAN CAPITAL
PRIME RATE INCOME TRUST
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
BANK OF AMERICA NT&SA
By:
-----------------------------------------
Its:
---------------------------------
THE FIRST NATIONAL BANK OF BOSTON
By:
-----------------------------------------
Its:
---------------------------------
BANQUE PARIBAS
By:
-----------------------------------------
Its:
---------------------------------
By:
-----------------------------------------
Its:
---------------------------------
BZW
By:
-----------------------------------------
Its:
---------------------------------
COMPAGNIE FINANCIERE DE CIC ET DE
L'UNION EUROPEENNE
By:
-----------------------------------------
Its:
---------------------------------
CREDIT LYONNAIS, NEW YORK BRANCH
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
CREDIT SUISSE FIRST BOSTON
By:
-----------------------------------------
Its:
---------------------------------
THE DAI-ICHI KANGYO BANK, LTD.
By:
-----------------------------------------
Its:
---------------------------------
KEYBANK NATIONAL ASSOCIATION
By:
-----------------------------------------
Its:
---------------------------------
SOCIETE GENERALE
By:
-----------------------------------------
Its:
---------------------------------
BANK OF MONTREAL
By:
-----------------------------------------
Its:
---------------------------------
CORESTATES BANK, N.A.
By:
-----------------------------------------
Its:
---------------------------------
FLEET NATIONAL BANK
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
THE FUJI BANK, LIMITED, HOUSTON AGENCY
By:
-----------------------------------------
Its:
---------------------------------
THE LONG-TERM CREDIT BANK OF JAPAN,
LIMITED, NEW YORK BRANCH
By:
-----------------------------------------
Its:
---------------------------------
MELLON BANK, N.A.
By:
-----------------------------------------
Its:
---------------------------------
PNC BANK, NATIONAL ASSOCIATION
By:
-----------------------------------------
Its:
---------------------------------
SANWA BANK, DALLAS AGENCY
By:
-----------------------------------------
Its:
---------------------------------
BANK OF NOVA SCOTIA
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
THE SUMITOMO BANK, LTD.
By:
-----------------------------------------
Its:
---------------------------------
By:
-----------------------------------------
Its:
---------------------------------
SUNTRUST BANK, CENTRAL FLORIDA, N.A.
By:
-----------------------------------------
Its:
---------------------------------
ABN-AMRO BANK, N.V. - HOUSTON AGENCY
By:
-----------------------------------------
Its:
---------------------------------
DRESDNER BANK AG, NEW YORK BRANCH
By:
-----------------------------------------
Its:
---------------------------------
SUMMIT BANK
By:
-----------------------------------------
Its:
---------------------------------
THE TOKAI BANK, LIMITED
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
UNION BANK OF SWITZERLAND, NEW YORK
BRANCH
By:
-----------------------------------------
Its:
---------------------------------
XXXXX FARGO BANK (TEXAS), NATIONAL
ASSOCIATION
By:
-----------------------------------------
Its:
---------------------------------
BANK OF IRELAND
By:
-----------------------------------------
Its:
---------------------------------
CAISSE NATIONALE DE CREDIT AGRICOLE
By:
-----------------------------------------
Its:
---------------------------------
CRESTAR BANK
By:
-----------------------------------------
Its:
---------------------------------
XXXXXX BANK, LTD.
By:
-----------------------------------------
Its:
---------------------------------
NATIONAL CITY BANK
By:
-----------------------------------------
Its:
---------------------------------
[SIGNATURES CONTINUED ON NEXT PAGE]
THE ROYAL BANK OF SCOTLAND PLC
By:
-----------------------------------------
Its:
---------------------------------
XXXXX BANK, N.A.
By:
-----------------------------------------
Its:
---------------------------------
THE SUMITOMO TRUST & BANKING CO., LTD.,
NEW YORK BRANCH
By:
-----------------------------------------
Its:
---------------------------------
THE YASUDA TRUST AND BANKING CO., LTD.
By:
-----------------------------------------
Its:
---------------------------------
NATIONAL BANK OF CANADA
By:
-----------------------------------------
Its:
---------------------------------
CITY NATIONAL BANK
By:
-----------------------------------------
Its:
---------------------------------
SECOND AMENDED AND RESTATED LOAN AGREEMENT AMONG EVERGREEN MEDIA CORPORATION OF
LOS ANGELES; THE FINANCIAL INSTITUTIONS WHOSE NAMES APPEAR AS LENDERS ON THE
SIGNATURE PAGES HEREOF; THE TORONTO-DOMINION BANK, BANKERS TRUST COMPANY, THE
BANK OF NEW YORK, NATIONSBANK OF TEXAS, N.A. AND UNION BANK OF CALIFORNIA, AS
MANAGING AGENTS; TORONTO DOMINION SECURITIES (USA), INC., AS ARRANGING AGENT;
AND TORONTO DOMINION (TEXAS), INC., AS ADMINISTRATIVE AGENT FOR THE LENDERS
INDEX
-----
Page
----
ARTICLE 1
Definitions......................... 2
ARTICLE 2
Loans............................... 30
Section 2.1 The Loans and Letters of Credit................... 30
Section 2.2 Manner of Borrowing and Disbursement.............. 31
Section 2.3 Interest.......................................... 34
Section 2.4 Commitment Reduction and Repayment................ 37
Section 2.5 Fees.............................................. 39
Section 2.6 Optional Prepayments and Reductions............... 40
Section 2.7 Mandatory Prepayments............................. 41
Section 2.8 Notes; Loan Accounts.............................. 44
Section 2.9 Manner of Payment................................. 45
Section 2.10 Reimbursement..................................... 46
Section 2.11 Pro-Rata Treatment................................ 46
Section 2.12 Capital Adequacy.................................. 47
Section 2.13 Lender Tax Forms.................................. 48
Section 2.14 The Letters of Credit............................. 48
ARTICLE 3
Conditions Precedent........................... 54
Section 3.1 Conditions Precedent to Initial Advance
of Loans.......................................... 54
Section 3.2 Conditions Precedent to Each Advance.............. 58
ARTICLE 4
Representations and Warranties...................... 59
Section 4.1 Representations and Warranties.................... 59
Section 4.2 Survival of Representations and
Warranties, etc. ................................. 67
Page
----
ARTICLE 5
General Covenants............................. 67
Section 5.1 Preservation of Existence and Similar
Matters........................................... 68
Section 5.2 Business; Compliance with Applicable
Law............................................... 68
Section 5.3 Maintenance of Properties......................... 68
Section 5.4 Accounting Methods and Financial
Records........................................... 69
Section 5.5 Insurance......................................... 69
Section 5.6 Payment of Taxes and Claims....................... 69
Section 5.7 Visits and Inspections............................ 70
Section 5.8 Payment of Indebtedness; Loans.................... 70
Section 5.9 Use of Proceeds................................... 70
Section 5.10 Indemnity......................................... 71
Section 5.11 Interest Rate Hedging............................. 72
Section 5.12 Covenants Regarding Formation of
Subsidiaries and Acquisitions..................... 73
Section 5.13 Payment of Wages.................................. 74
ARTICLE 6
Information Covenants........................... 74
Section 6.1 Quarterly Financial Statements and
Information....................................... 74
Section 6.2 Annual Financial Statements and
Information....................................... 74
Section 6.3 Performance Certificates.......................... 75
Section 6.4 Copies of Other Reports........................... 75
Section 6.5 Notice of Litigation and Other Matters............ 76
ARTICLE 7
Negative Covenants............................. 78
Section 7.1 Indebtedness of the Borrower and its
Subsidiaries...................................... 78
Section 7.2 Limitation on Liens............................... 79
Section 7.3 Amendment and Waiver.............................. 79
Section 7.4 Liquidation, Change in Ownership,
Disposition of Assets, Change in
Business of License Subs.......................... 79
Section 7.5 Negative Pledges.................................. 80
Section 7.6 Investments....................................... 80
Section 7.7 Restricted Payments and Purchases................. 83
Section 7.8 Leverage Ratio.................................... 84
Section 7.9 Operating Cash Flow to Cash Interest
Expense Ratio..................................... 85
Section 7.10 Operating Cash Flow to Pro Forma Fixed
Charges Ratio..................................... 85
Section 7.11 Affiliate Transactions............................ 86
Section 7.12 Real Estate....................................... 86
Page
----
Section 7.13 Consolidated Tax Returns.......................... 86
ARTICLE 8
Default.................................. 86
Section 8.1 Events of Default................................. 86
Section 8.2 Remedies.......................................... 90
ARTICLE 9
The Administrative Agent.......................... 92
Section 9.1 Appointment and Authorization..................... 92
Section 9.2 Interest Holders.................................. 92
Section 9.3 Consultation with Counsel and Required
Lenders........................................... 93
Section 9.4 Documents......................................... 93
Section 9.5 Administrative Agent and Affiliates............... 93
Section 9.6 Responsibility of the Administrative
Agent............................................. 93
Section 9.7 Collateral........................................ 94
Section 9.8 Action by Administrative Agent.................... 94
Section 9.9 Notice of Default................................. 95
Section 9.10 Responsibility Disclaimed......................... 95
Section 9.11 Indemnification................................... 96
Section 9.12 Credit Decision................................... 96
Section 9.13 Successor Administrative Agent.................... 96
Section 9.14 Delegation of Duties.............................. 97
Section 9.15 Administrative Agent May File Proofs of
Claim............................................. 98
ARTICLE 10
Change in Circumstances
Affecting Eurodollar Advances....................... 98
Section 10.1 Eurodollar Basis Determination
Inadequate or Unfair.............................. 98
Section 10.2 Illegality........................................ 99
Section 10.3 Increased Costs................................... 99
Section 10.4 Effect On Other Advances.......................... 101
ARTICLE 11
Miscellaneous............................... 101
Section 11.1 Notices........................................... 101
Section 11.2 Expenses.......................................... 103
Section 11.3 Waivers........................................... 103
Section 11.4 Set-Off........................................... 104
Section 11.5 Assignment........................................ 105
Section 11.6 Accounting Principles............................. 107
Section 11.7 Counterparts...................................... 107
Section 11.8 Governing Law..................................... 108
Section 11.9 Severability...................................... 108
Section 11.10 Interest.......................................... 108
Page
----
Section 11.11 Table of Contents and Headings.................... 109
Section 11.12 Amendment and Waiver.............................. 109
Section 11.13 Entire Agreement.................................. 110
Section 11.14 Other Relationships............................... 110
Section 11.15 Directly or Indirectly............................ 110
Section 11.16 Reliance on and Survival of Various
Provisions........................................ 110
Section 11.17 Senior Debt....................................... 110
Section 11.18 Obligations Several............................... 111
ARTICLE 12
Waiver of Jury Trial............................. 111
Section 12.1 Waiver of Jury Trial............................... 111
Page
----
EXHIBITS
Exhibit A - Form of Assignment of Partnership Interests
Exhibit B - Form of Borrower's Pledge Agreement
Exhibit C - Form of Collateral Assignment of Trust Interests
Exhibit D - Form of Parent Company Guaranty
Exhibit E-1 Form of Request for Advance (Initial Advance)
Exhibit E-2 Form of Request for Advance (Proceeds Used for
Acquisition)
Exhibit E-3 Form of Request for Advance (Proceeds Not Used for
Acquisition)
Exhibit F - Form of Request for Issuance of Letter of Credit
Exhibit G - Form of Revolving Note
Exhibit H - Form of Stock Pledge Agreement
Exhibit I - Form of Subsidiary Guaranty
Exhibit J - Form of Subsidiary Pledge Agreement
Exhibit K - Form of Term Note
Exhibit L - Form of Use of Proceeds Letter
Exhibit M - Form of Borrower's Loan Certificate
Exhibit N - Form of Certificate of Financial Condition
Exhibit O - Form of Parent Company Loan Certificate
Exhibit P - Form of Subsidiary Loan Certificate
Exhibit Q - Form of Assignment and Assumption Agreement
Exhibit R - Form of Trust Agreement
SCHEDULES
Schedule 1 - Commitment Ratios
Schedule 2 - Subsidiaries of the Borrower
Schedule 3 - Licenses (including Material Licenses) and
Stations
Schedule 4 - Liens of Record on the Agreement Date
Schedule 5 - Required Divestitures
Schedule 6 - Litigation, Etc.
Schedule 7 - Multiemployer Plans
Schedule 8 - Agreements with Affiliates
Schedule 9 - Addresses for Notice for the Lenders
EXHIBIT A
---------
FORM OF
SECOND AMENDED AND RESTATED
ASSIGNMENT OF PARTNERSHIP INTERESTS
THIS SECOND AMENDED AND RESTATED ASSIGNMENT OF PARTNERSHIP INTERESTS (the
"Assignment"), made as of the ____ day of April, 1997 by the undersigned
entities (the "Partners") in favor of Toronto Dominion (Texas), Inc., as
collateral agent for itself and on behalf of the Administrative Agent, and the
Lenders and the Issuing Bank (as defined in the Loan Agreement described below)
(the "Collateral Agent"),
W I T N E S S E T H:
-------------------
WHEREAS, Evergreen Media Corporation of Los Angeles, a Delaware
corporation (the "Borrower"), the various financial institutions whose names
appear as lenders on the signature pages to the Loan Agreement (as defined
below) (together with any other financial institution which subsequently becomes
a `Lender' under the Loan Agreement, as such term is defined herein, the
"Lenders") and Toronto Dominion (Texas), Inc., as administrative agent for the
Lenders (the "Administrative Agent"), are parties to a certain Second Amended
and Restated Loan Agreement of even date herewith (as amended, modified or
supplemented from time to time, the "Loan Agreement") pursuant to which the
Lenders have agreed to make Loans to the Borrower in an aggregate principal
amount not to exceed the Commitments; and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as collateral
agent for itself, and on behalf of itself in its capacity as the Administrative
Agent, the Lenders and the Issuing Bank, in connection with the transactions
contemplated by the Loan Agreement; and
WHEREAS, to secure the payment and performance of, among other things,
all Obligations of the Borrower under the Loan Agreement and the Notes, each of
the Partners has agreed to assign to the Collateral Agent, all of such Partner's
interest as general and limited partners of the partnerships listed on Schedule
--------
1 attached hereto (the "Partnerships");
-
-1-
NOW, THEREFORE, in consideration of the sum of Ten and No/100 Dollars
($10.00) in hand paid and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the Partners, as limited
and general partners of the Partnerships, hereby sells, assigns, transfers,
conveys and grants unto the Collateral Agent for itself and on behalf of the
Administrative Agent, the Lenders, the Issuing Bank and their respective
successors and assigns, all of such Partner's right, title and interest in and
to, and a continuing security interest in and security title to, its limited
partner interests in the Partnerships in which it is a limited partner and its
economic general partner interests in the Partnerships in which it is a general
partner, including, without limitation, with respect to such general partner and
limited partner interests, the right to receive all proceeds, distributions of
income, profits, surplus or other compensation by way of income or liquidating
distributions, in cash or in kind, from the Partnerships, including such right,
title and interest now owned by such Partner or which is hereafter acquired by
it (the "Assigned Rights"), as security for payment and performance of all
obligations of such Partner to the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, under that certain Subsidiary
Guaranty of even date given by such Partner for the benefit of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any
extensions, renewals or amendments thereto, however created, acquired, arising
or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due (all of the foregoing obligations
being hereinafter collectively referred to as the "Senior Debt").
TO HAVE AND TO HOLD UNTO the Collateral Agent, for the benefit of itself
and the Administrative Agent, the Lenders and the Issuing Bank, and their
successors and assigns forever, upon and subject to the following terms and
conditions:
1. For purposes of this Assignment, capitalized terms used herein
shall have the meanings ascribed thereto in the Loan Agreement unless otherwise
defined herein.
2. Each Partner hereby constitutes and appoints the Collateral Agent
as its true and lawful attorney, in its name and stead upon the occurrence and
during the continuation of an Event of Default: (a) to collect any and all
distributions of cash and other assets due such Partner from any Partnership or
otherwise in respect of the Assigned
-2-
Rights and (b) to use such measures, legal or equitable, as in its discretion
may be deemed necessary or appropriate to enforce the payment thereof to the
Collateral Agent. The power of attorney hereby created is coupled with an
interest and is irrevocable.
3. The Collateral Agent is hereby granted full irrevocable power and
authority to hold, use and apply all cash and non-cash distributions received by
it upon the occurrence and during the continuation of an Event of Default
(together with all interest earned thereon) in full or partial payment of the
Senior Debt and may convert any such non-cash distributions to cash and may
apply the proceeds thereof in payment of charges or expenses incurred by the
Collateral Agent in connection with any and all things which the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank may do or
cause to be done hereunder, and thereafter in the order of application set forth
in the Loan Agreement.
4. None of the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank shall in any way be responsible for any failure to
do any or all of the things for which rights, interests, power and authority are
herein granted. The Collateral Agent, the Administrative Agent, the Lenders and
the Issuing Bank shall be responsible only for the application of such cash or
other property as they actually receive under the terms hereof; provided,
however, that the failure of the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, to do any of the things or
exercise any of the rights, interests, powers and authorities hereunder shall
not be construed to be a waiver of any such rights, interests, powers and
authorities.
5. This Assignment shall not operate to place any responsibility or
obligation whatsoever upon the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them. None of the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank shall have assumed any
liability of any Partner or of the Partnership as a result of this Assignment.
Each Partner agrees to protect, indemnify and save harmless the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank from and
against all liabilities, obligations, claims, damages, penalties, causes of
action, costs and expenses including, without limitation, attorneys' fees and
expenses (except as may arise from the gross negligence or wilful misconduct of
the Person seeking indemnification, as determined by a final non-appealable
-3-
order of a court of competent jurisdiction) imposed upon or incurred by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, by reason of the Assigned Rights, this Assignment and any claim and
demand whatsoever which may be asserted against the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, by
reason of any alleged obligation or undertaking to be performed or discharged by
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, under this Assignment. In the event the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them,
incurs any liability, loss or damage by reason of this Assignment, or in curing
any default or breach by any Partner of its obligations under any Partnership
Agreement of any of the Partnerships of which it is a partner (collectively, the
"Partnership Agreements"), or in the defense of any claims or demands arising
out of or in connection with this Assignment, the amount of such liability, loss
or damage shall be added to the Senior Debt (except to the extent such
liabilities, losses or damages arise from the gross negligence or wilful
misconduct of the Person incurring such liabilities, losses or damages, as
determined by a final non-appealable order of a court of competent
jurisdiction).
6. Each Partner agrees to execute, deliver and record, upon the
request of the Collateral Agent, any and all instruments requested by the
Collateral Agent to carry these presents into effect or to accomplish any other
purpose deemed by the Collateral Agent to be necessary or appropriate in
connection with these presents, expressly including, but not limited to, UCC-l
financing statements.
7. Each Partner hereby warrants and represents that the copies of the
Partnership Agreements to which it is a party furnished to the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank are true, complete
and correct copies of such Partnership Agreements, as amended through the date
hereof; that such Partnership Agreements are unmodified and in full force and
effect; that the Assigned Rights have not been heretofore sold, assigned,
transferred, set over or encumbered by any instrument now in force, and will not
at any time during the term of this Assignment be sold, assigned, transferred,
set over or encumbered by it or by any Person or Persons whomsoever, without the
prior written consent of the Collateral Agent in accordance with the terms of
the Loan Agreement; that the Assigned Rights are all of such rights such Partner
has arising from its partnership interests in the Partnerships and that the
interests of such Partner in
-4-
the Partnerships represent the percentages shown on Schedule 1 attached hereto
----------
of the limited and general partner ownership interests in the Partnerships; that
such Partner has the right to sell, assign, transfer, set over and encumber the
Assigned Rights to the Collateral Agent and to grant to and confer upon the
Collateral Agent the Assigned Rights; that such Partner is not at present in
default in any material respect under any Partnership Agreement; and that all
actions, approvals and consents required by Applicable Law or by any agreement
to which such Partner or any Partnership is a party have been obtained.
8. Each Partner hereby agrees that it will not, except as permitted
under the Loan Agreement, at any time during the term of this Assignment, convey
or encumber any of its interests, including, without limitation, the Assigned
Rights, in any Partnership in any manner whatsoever or consent to any departure
from or any modification or amendment to the Partnership Agreements, or consent
to the admission of any new general partner or consent to any change in the
business of any Partnership, without the prior written consent of the Collateral
Agent in accordance with the terms of the Loan Agreement. Each Partner agrees
that it will perform all its obligations as a general and limited partner under
the Partnership Agreements to which it is a party and that it will do all things
necessary to maintain its interests in the Partnerships in full force and
effect.
9. In the event any Partner (other than any Subsidiary of the
Borrower) receives any payment or other distribution of any kind or character
from any Partnership or from any other source whatsoever in respect of such
Partner's interests in such Partnership hereby assigned, such payments or other
distributions shall be received in trust for the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank and shall be promptly
turned over by such Partner to the Collateral Agent. Each Partner will xxxx its
books and records, so as to clearly indicate that such Partner's rights as a
general partner and a limited partner of any of the Partnerships are subject to
the terms of this Assignment.
10. This Assignment and the rights hereunder shall inure to the
benefit of each of the Collateral Agent, the Administrative Agent, the Lenders
and the Issuing Bank, and may be assigned in whole or in part by the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, in connection with any assignment of the Loan Agreement or the
Indebtedness evidenced thereby, as
-5-
permitted thereunder, and shall be binding upon each Partner and its respective
successors and assigns.
11. Notwithstanding anything contained herein to the contrary, it is
understood and agreed that although this Assignment is and shall be effective as
of the date hereof, no right or power granted hereunder or obligation under
Section 9 hereof shall be exercised or enforced by the Collateral Agent unless
and until an Event of Default, as hereinafter specified, shall occur and be
continuing hereunder. It is the intention of the parties hereto that beneficial
ownership of the Assigned Rights, including, without limitation, all voting,
consensual and distribution rights, shall remain in each Partner until an Event
of Default, as hereinafter specified, shall occur and be continuing. Any Event
of Default under the Loan Agreement shall constitute an "Event of Default"
hereunder. Upon the occurrence of any Event of Default, the Collateral Agent
may exercise such rights and remedies as are provided in the Loan Agreement and
this Assignment. The rights and remedies granted hereunder shall be cumulative,
and not exclusive. Each Partner expressly agrees that none of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank shall in any
event be under any obligation to resort to any right or remedy hereunder prior
to exercising any other rights any of them may have against such Partner or the
Borrower or any other Person to secure repayment of the Obligations, nor shall
any of the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank be required to resort to any such other rights prior to the
exercise of rights and remedies hereunder.
12. Subject to Section 15 below, for so long as any of the Obligations
shall remain unpaid, and after the occurrence and during the continuation of an
Event of Default, the Collateral Agent may exercise all ownership or consensual
rights pertaining to the Assigned Rights of each Partner and may notify and
instruct the Partnerships to thereafter make all payments otherwise due such
Partner in respect of the Assigned Rights payable directly to the Collateral
Agent. The Collateral Agent shall have the right to apply such payments in
reduction of the Obligations in accordance with the terms of the Loan Agreement.
Each Partner hereby appoints the Collateral Agent as such Partner's true and
lawful attorney-in-fact at such times to exercise such ownership or consensual
rights pertaining to the Assigned Rights in any manner the Collateral Agent
deems advisable for or against all matters with respect to the Partnerships.
The power of attorney granted hereby is coupled with an interest and shall be
irrevocable.
-6-
13. Each Partner undertakes and agrees, in connection herewith, to
deliver to the Collateral Agent a copy of any notice or mailing received by such
Partner from the Partnerships, at the address of the Collateral Agent given for
notices in Section 11.1 of the Loan Agreement.
------------
14. In addition to their rights and privileges under this Assignment,
each of the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank shall have all of the rights, powers and privileges of a secured
party under the Uniform Commercial Code as in effect in any applicable
jurisdiction.
15. Notwithstanding anything contained herein which may be construed
to the contrary, no action shall be taken by the Collateral Agent which may
require the consent or approval of the FCC unless and until all requirements of
the Communications Act requiring the consent to or approval of such action by
the FCC have been satisfied. Each Partner covenants that, upon request of the
Collateral Agent, it shall cause to be filed such applications and take such
other action as may be requested by the Collateral Agent to obtain consent or
approval of the FCC to any action contemplated by this Agreement and to give
effect to the security interest of the Collateral Agent hereunder, including,
without limitation, the execution of an application for consent by the FCC to an
assignment or transfer involving a change in ownership or control pursuant to
the provisions of the Communications Act. Each Partner hereby irrevocably
appoints the Collateral Agent its true and lawful attorney-in-fact, effective
upon the occurrence and during the continuation of an Event of Default, in its
name and stead, to execute and file all necessary applications with the FCC.
The power of attorney granted hereby is coupled with an interest and shall be
irrevocable.
16. This Assignment shall be deemed to be made pursuant to the
internal laws of the State of New York with respect to agreements made and to be
performed wholly within the State of New York and shall be construed,
interpreted, performed and enforced in accordance therewith.
17. This Assignment may be executed in multiple counterparts, each of
which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same instrument.
18. Upon payment in full of all principal and interest on the Notes,
full performance by the Borrower of all covenants, undertakings and obligations
under the Loan
-7-
Agreement, the Notes and the other Loan Documents, and satisfaction in full of
all other Obligations and termination of the Commitments, other than the
Obligations which survive the termination of the Loan Agreement as provided in
Section 11.16 of the Loan Agreement, the Collateral Agent shall return its
-------------
interest in the Assigned Rights to the Partners.
19. Pursuant to Section 5.12 of the Loan Agreement, any new
------------
Subsidiary of the Borrower (whether created by Acquisition, creation or
designation) is required to enter into this Assignment, if applicable, by
executing and delivering to the Administrative Agent an instrument in the form
of Annex I attached hereto. Upon the execution and delivery of Annex I by such
------- -------
new Subsidiary, such Subsidiary shall become a Partner hereunder with the same
force and effect as if originally named as a Partner herein. The execution and
delivery of any instrument adding an additional Partner as a party to this
Assignment shall not require the consent of any other Partner hereunder. The
rights and obligations of each Partner hereunder shall remain in full force and
effect notwithstanding the addition of any Partner hereunder.
20. Each Partner further agrees to assign and grant security title to,
and a security interest in, any partnership interests obtained by such Partner
after the date hereof. Each Partner agrees to execute, deliver and record any
amendments hereto, documents, instruments and UCC-1 financing statements deemed
by the Collateral Agent to be necessary or appropriate to create or perfect the
security interest described in the foregoing sentence.
[Remainder of this page intentionally left blank.]
-8-
IN WITNESS WHEREOF, each of the undersigned Partners and the Collateral
Agent have caused this instrument to be executed by their duly authorized
representatives as of the day and year first above written.
PARTNERS: By:
------------------------*
In his capacity as
Assistant Secretary of
each of the Partners
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC.
By:
---------------------------
Its:
----------------------
* Schedule 1 - List of Partners, Partnerships and Limited and General Partner
Interests Assigned
Schedule 1
----------
List of Partners, Partnerships
and Limited and General
Partner Interests Assigned
% of Partnership
Partner Name of Partnership Interest
--------- ------------------- ----------------
-10-
Annex 1 to
Assignment of Partnership
Interests -
Supplement No. ____
Supplement No. ____ (this "Supplement") dated as of __________
___, _____ to the Second Amended and Restated Assignment of
Partnership Interests dated as of April __, 1997 (the "Assignment") by
each of the parties listed on the signature pages thereto and those
additional entities that thereafter become parties thereto (each a
"Partner") and Toronto Dominion (Texas), Inc., as collateral agent as
described below (the "Collateral Agent").
WITNESSETH:
WHEREAS, the transactions recited on the first page of the Assignment have
taken place; and
WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Assignment;
WHEREAS, the Partners have entered into the Assignment in order to induce
the Lenders to make the Loans; and
WHEREAS, pursuant to Section 5.12 of the Loan Agreement, any new Subsidiary
------------
of the Borrower (whether created by Acquisition, creation or designation) is
required to enter into the Assignment, if applicable, and the execution of the
Assignment by the undersigned new Partner (the "New Partner") may be
accomplished by the execution of this Supplement in favor of the Collateral
Agent;
NOW, THEREFORE, for and in consideration of the foregoing, Ten and No/100
Dollars ($10.00) in hand paid, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the New Partner hereby
agrees as follows:
SECTION 1. In accordance with Section 19 of the Assignment the New
----------
Partner, by its signature below, becomes a `Partner' under the Assignment with
the same force and effect as if originally named therein as a `Partner' and the
New Partner hereby (a) agrees to all of the terms and provisions of the
Assignment applicable to it as a `Partner' thereunder and (b) represents and
warrants that the
representations and warranties made by it as a `Partner' thereunder are true and
correct on and as of the date hereof. In furtherance of the foregoing, the New
Partner does hereby grant and assign to the Collateral Agent, for the benefit of
itself, the Administrative Agent, the Lenders and the Issuing Bank, as a limited
partner and a general partner of the partnerships listed on Schedule 1 attached
----------
hereto (collectively, the "Partnerships"), all of such New Partner's right,
title and interest in and to, and a continuing security interest in and security
title to, its limited partner interests in the Partnerships in which it is a
limited partner and its economic general partner interests in the Partnerships
in which it is a general partner, including, without limitation, with respect to
such general partner and limited partner interests, the right to receive all
proceeds, distributions of income, profits, surplus or other compensation by way
of income or liquidating distributions, in cash or in kind, from the
Partnerships, including such right, title and interest now owned by such Partner
or which is hereafter acquired by it, as security for the Senior Debt. Each
reference to a `Partner' in the Assignment shall be deemed to include the New
Partner. The Assignment is incorporated herein by reference.
SECTION 2. The New Partner represents and warrants to the Collateral Agent
that this Supplement has been duly executed and delivered by the New Partner and
constitutes the legal, valid and binding obligation of the New Partner,
enforceable against it in accordance with its terms, except as enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting creditors' rights generally
and general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
SECTION 3. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
SECTION 4. Except as expressly supplemented hereby, the Assignment shall
remain in full force and effect.
SECTION 5. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
-2-
IN WITNESS WHEREOF, the New Partner has duly executed this Supplement to
the Assignment as of the day and year first above written.
NEW PARTNER:
---------------------------------
Address: By:
-----------------------------
------------------------------- Name:
------------------------------- -----------------------
------------------------------- Title:
----------------------
COLLATERAL AGENT: TORONTO DOMINION (TEXAS),
INC.
By:
-----------------------------
Name:
-----------------------
Title:
----------------------
-3-
SCHEDULE 1
----------
List of Partners, Partnerships and Limited and General
Partner Interests Assigned
Name of % of Partnership
New Partner Partnership Interest
----------- --------------- --------------------
-4-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
economic general partnership interests in each of (i) EVERGREEN MEDIA OF HOUSTON
LIMITED PARTNERSHIP, a Delaware limited partnership, (ii) KTRH LICENSE LIMITED
PARTNERSHIP, a Delaware limited partnership, and (iii) KLOL LICENSE LIMITED
PARTNERSHIP, a Delaware limited partnership, (collectively, the "Partnerships")
including, without limitation, with respect to such general partner interests,
the right to receive all proceeds, distributions of income, profits, surplus or
other compensation by way of income or liquidating distributions, in cash or in
kind, from each of the Partnerships, including such right, title and interest
now owned by the Debtor or which is hereafter acquired by it.
-5-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
economic general partnership interests in each of (i) EVERGREEN MEDIA OF HOUSTON
LIMITED PARTNERSHIP, a Delaware limited partnership (d/b/a EVERGREEN MEDIA OF
HOUSTON II LIMITED PARTNERSHIP), (ii) KTRH LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, and (iii) KLOL LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, (collectively, the "Partnerships") including,
without limitation, with respect to such general partner interests, the right to
receive all proceeds, distributions of income, profits, surplus or other
compensation by way of income or liquidating distributions, in cash or in kind,
from each of the Partnerships, including such right, title and interest now
owned by the Debtor or which is hereafter acquired by it.
-6-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
limited partnership interests in EVERGREEN MEDIA OF HOUSTON LIMITED PARTNERSHIP,
a Delaware limited partnership, (the "Partnership") including, without
limitation, with respect to such limited partner interests, the right to receive
all proceeds, distributions of income, profits, surplus or other compensation by
way of income or liquidating distributions, in cash or in kind, from the
Partnership, including such right, title and interest now owned by the Debtor or
which is hereafter acquired by it.
-7-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
limited partnership interests in each of (i) KTRH LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, and (ii) KLOL LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, (collectively, the "Partnerships") including,
without limitation, with respect to such limited partner interests, the right to
receive all proceeds, distributions of income, profits, surplus or other
compensation by way of income or liquidating distributions, in cash or in kind,
from each of the Partnerships, including such right, title and interest now
owned by the Debtor or which is hereafter acquired by it.
-8-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
limited partnership interests in EVERGREEN MEDIA OF HOUSTON LIMITED PARTNERSHIP,
a Delaware limited partnership, (d/b/a EVERGREEN MEDIA OF HOUSTON II LIMITED
PARTNERSHIP) (the "Partnership") including, without limitation, with respect to
such limited partner interests, the right to receive all proceeds, distributions
of income, profits, surplus or other compensation by way of income or
liquidating distributions, in cash or in kind, from the Partnership, including
such right, title and interest now owned by the Debtor or which is hereafter
acquired by it.
-9-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
economic general partnership interests in each of (i) WTOP LICENSE LIMITED
PARTNERSHIP, a Delaware limited partnership, and (ii) WASH LICENSE LIMITED
PARTNERSHIP, a Delaware limited partnership, (collectively, the "Partnerships")
including, without limitation, with respect to such general partner interests,
the right to receive all proceeds, distributions of income, profits, surplus or
other compensation by way of income or liquidating distributions, in cash or in
kind, from each of the Partnerships, including such right, title and interest
now owned by the Debtor or which is hereafter acquired by it.
-10-
EXHIBIT A
---------
All of the Debtor's right, title and interest in and to the Debtor's
limited partnership interests in each of (i) WTOP LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, and (ii) WASH LICENSE LIMITED PARTNERSHIP, a
Delaware limited partnership, (collectively, the "Partnerships") including,
without limitation, with respect to such limited partner interests, the right to
receive all proceeds, distributions of income, profits, surplus or other
compensation by way of income or liquidating distributions, in cash or in kind,
from each of the Partnerships, including such right, title and interest now
owned by the Debtor or which is hereafter acquired by it.
-11-
EXHIBIT B
---------
FORM OF SECOND AMENDED AND RESTATED
BORROWER'S PLEDGE AGREEMENT
THIS SECOND AMENDED AND RESTATED BORROWER'S PLEDGE AGREEMENT (the
"Agreement"), entered into as of this __ day of April, 1997, by Evergreen Media
Corporation of Los Angeles, a Delaware corporation (the "Borrower") in favor of
Toronto Dominion (Texas), Inc., a Delaware corporation, as collateral agent for
the benefit of itself, and on behalf of itself, in its capacity as the
Administrative Agent, the Lenders and the Issuing Bank (as defined in the Loan
Agreement described below) (the "Collateral Agent"),
W I T N E S S E T H:
-------------------
WHEREAS, the Borrower, the various financial institutions whose names
appear as lenders on the signature pages to the Loan Agreement (as defined
below) (together with any other financial institution which subsequently becomes
a `Lender' under the Loan Agreement, as such term is defined herein, the
"Lenders") and Toronto Dominion (Texas), Inc., as administrative agent for the
Lenders (the "Administrative Agent"), are parties to a certain Second Amended
and Restated Loan Agreement of even date herewith (as amended, modified or
supplemented from time to time, the "Loan Agreement") pursuant to which the
Lenders have agreed to make Loans to the Borrower in an aggregate principal
amount not to exceed the Commitments; and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as collateral
agent for itself, and on behalf of itself, in its capacity as the Administrative
Agent, the Lenders and the Issuing Bank, in connection with the transactions
contemplated by the Loan Agreement; and
WHEREAS, to secure the payment and performance of, among other things,
all obligations of the Borrower under the Loan Agreement, the Notes and the
other Loan Documents, the Borrower has agreed to pledge the shares of Capital
Stock (the "Stock") owned by the Borrower in each of the corporations listed on
Schedule 1 hereto (the "Subsidiaries"), which is all of the Capital Stock owned
----------
by
the Borrower, to the Collateral Agent to secure the Obligations (as defined
below);
NOW, THEREFORE, the parties hereto agree that capitalized terms used
herein shall have the meanings ascribed to them in the Loan Agreement to the
extent not otherwise defined or limited herein and further agree as follows:
1. Warranty. The Borrower hereby represents and warrants to the
--------
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
that, except for the security interest created hereby, the Borrower owns the
Stock, which Stock constitutes such percentage of the issued and outstanding
Capital Stock of each Subsidiary as is set forth next to such Subsidiary's name
on Schedule 1, free and clear of all Liens, that the Stock is duly issued, fully
----------
paid and non-assessable and that the Borrower has the unencumbered right to
pledge the Stock.
2. Security Interest. The Borrower hereby unconditionally grants and
-----------------
assigns to the Collateral Agent, for itself and on behalf of itself, in its
capacity as the Administrative Agent, the Lenders, the Issuing Bank and their
respective successors and assigns, a continuing security interest in and
security title to the Stock. The Borrower has delivered to and deposited with
the Collateral Agent herewith all of its right, title and interest in and to the
Stock, together with certificates representing the Stock and stock powers
endorsed in blank, as security for (a) the payment and performance of all
obligations of the Borrower to the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, under the Loan Agreement, the
Notes and the other Loan Documents (including, without limitation, any Interest
Hedge Agreements between the Borrower, on the one hand, and the Collateral Agent
and the Lenders, or any of them, on the other hand, and any interest, fees and
other charges in respect of the Notes and the other Loan Documents that would
accrue but for the filing of a bankruptcy action with respect to the Borrower,
whether or not such claim is allowed in such bankruptcy action), as the same may
be amended from time to time, or as a result of making the Loans, (b) payment of
any and all damage which the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, may suffer by reason of a breach of any obligation,
covenant or undertaking with respect to this Agreement, the Loan Agreement, the
Notes or any other Loan
-2-
Document by the Borrower or any other obligor thereunder and (c) the obligations
of any obligor to the Collateral Agent, the Administrative Agent, the Lenders
and the Issuing Bank, or any of them, under this Agreement, the Loan Agreement
and the other Loan Documents, or as a result of making the Loans, and any
extensions, renewals or amendments of any of the foregoing, however created,
acquired, arising or evidenced, whether direct or indirect, absolute or
contingent, now or hereafter existing, or due or to become due (all of the
foregoing obligations (a), (b) and (c) being hereinafter collectively referred
to as the "Obligations"); it being the intention of the parties hereto that
beneficial ownership of the Stock, including, without limitation, all voting,
consensual and dividend rights, shall remain in the Borrower until the
occurrence of a Default (as defined below) under the terms hereof and until the
Collateral Agent shall notify the Borrower of the Collateral Agent's exercise of
voting and dividend rights to the Stock pursuant to Section 9 of this Agreement.
---------
3. Additional Shares. In the event that, during the term of this
-----------------
Agreement:
(a) any stock dividend, stock split, reclassification, readjustment or
other change is declared or made in the capital structure of any
Subsidiary, all new, substituted and additional shares, or other
securities, issued by reason of any such change and received by the
Borrower, or to which the Borrower shall be entitled, shall be promptly
delivered to the Collateral Agent, together with stock powers endorsed in
blank by the Borrower, and shall thereupon constitute Stock to be held by
the Collateral Agent under the terms of this Agreement; and
(b) any subscriptions, warrants or any other rights or options shall be
issued in connection with the Stock, all new Capital Stock or other
securities acquired through such subscriptions, warrants, rights or options
by the Borrower shall be promptly delivered to the Collateral Agent and
shall thereupon constitute Stock to be held by the Collateral Agent under
the terms of this Agreement.
4. Default. In the event of the occurrence of an Event of Default
-------
under the terms of the Loan Agreement, and so long as any such Event of Default
shall be continuing (any of such occurrences being herein referred to as a
-3-
"Default"), subject to Section 13 hereof, the Collateral Agent may sell or
----------
otherwise dispose of the Stock at a public or private sale, or make other
commercially reasonable disposition of the Stock or any portion thereof, upon
ten (10) days' notice to the Borrower, and the Collateral Agent, the
Administrative Agent, any Lender or the Issuing Bank may purchase the Stock or
any portion thereof at any public sale. The proceeds of the public or private
sale or other disposition shall be applied to the costs of the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank incurred in
connection with the sale, including, without limitation, any costs under Section
-------
7(a) hereof, and thereafter in such order as is provided in the Loan Agreement.
----
In the event the proceeds of the sale or other disposition of the Stock are
insufficient to satisfy the Obligations, the Borrower shall remain liable for
any such deficiency.
5. Additional Rights of Secured Party. In addition to the rights
----------------------------------
and privileges granted under this Agreement, the Collateral Agent, the
Administrative Agent, the Issuing Bank and each of the Lenders shall have all
the rights, powers and privileges of a secured party under the Uniform
Commercial Code as in effect in any applicable jurisdiction.
6. Return of Stock to the Borrower. Upon payment in full of all
-------------------------------
principal and interest on the Notes, full performance by the Borrower of all
covenants, undertakings and obligations under the Loan Agreement, the Notes, and
the other Loan Documents, and satisfaction in full of all other Obligations,
other than the Obligations which survive the termination of the Loan Agreement
as provided in Section 11.16 of the Loan Agreement, the then remaining Stock and
-------------
all rights received by the Collateral Agent as a result of its possessory
interest in the Stock shall be returned to the Borrower.
7. Disposition of Stock by Collateral Agent. The Stock is not
----------------------------------------
registered or qualified under the various Federal or state securities laws of
the United States and disposition thereof after default may be restricted to one
or more private (instead of public) sales in view of the lack of such
registration. The Borrower understands that, in connection with such
disposition, the Collateral Agent may approach only a restricted number of
potential purchasers and further understands that a sale under such
circumstances may yield a lower price for the Stock than if
-4-
the Stock was registered and qualified pursuant to Federal and state securities
legislation and sold on the open market. The Borrower, therefore, agrees that:
(a) if the Collateral Agent shall, pursuant to the terms of this
Agreement, sell or cause the Stock or any portion thereof to be sold at a
private sale, the Collateral Agent shall have the right to rely upon the
advice and opinion of any national brokerage or investment firm having
recognized expertise and experience in connection with shares of radio
broadcast and other communication companies (but shall not be obligated to
seek such advice and the failure to do so shall not be considered in
determining the commercial reasonableness of such action) as to the best
manner in which to expose the Stock for sale and as to the best price
reasonably obtainable at the private sale thereof; and
(b) that such reliance shall be presumptive evidence that the
Collateral Agent has handled such disposition in a commercially reasonable
manner.
8. Borrower's Obligations Absolute. The obligations of the Borrower
-------------------------------
under this Agreement shall be direct and immediate and not conditional or
contingent upon the pursuit of any remedies against the Borrower or any other
Person, nor against other security or liens available to the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them, or
any of their respective successors, assigns or agents. The Borrower hereby
waives any right to require that an action be brought against any other Person
or to require that resort be had to any security or to any balance of any
deposit account or credit on the books of the Collateral Agent, the Issuing Bank
or any of the Lenders in favor of any other Person prior to the exercise of
remedies hereunder, or to require action hereunder prior to resort by the
Collateral Agent, the Administrative Agent, the Issuing Bank or any of the
Lenders to any other security or collateral for the Notes and the other
Obligations.
9. Voting Rights.
-------------
(a) For so long as any of the Notes or other Obligations remain
unpaid, after and during the continuation of a Default, but subject to the
provisions of Section 13 hereof, (i) the Collateral
----------
-5-
Agent may, upon ten (10) days' prior written notice to the Borrower of its
intention to do so, exercise all voting rights and all other ownership or
consensual rights of the Stock, but under no circumstances is the
Collateral Agent obligated by the terms of this Agreement to exercise such
rights, and (ii) the Borrower hereby appoints the Collateral Agent, which
appointment shall be effective on the 10th day following the giving of
notice by the Collateral Agent as provided in the foregoing clause (i), the
Borrower's true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote
the Stock in any manner the Collateral Agent deems advisable for or against
all matters submitted or which may be submitted to a vote of shareholders.
The power-of-attorney granted hereby is coupled with an interest and shall
be irrevocable.
(b) For so long as the Borrower shall have the right to vote the
Stock, the Borrower covenants and agrees that it shall not, without the
prior written consent of the Collateral Agent, vote or take any consensual
action with respect to the Stock which would constitute a Default.
10. Notices. All notices and other communications required or
-------
permitted hereunder shall be in writing and shall be given in the manner and at
the addresses set forth in Section 11.1 of the Loan Agreement with respect to
------------
the Borrower, the Collateral Agent, the Administrative Agent, the Issuing Bank
and the Lenders.
11. Binding Agreement. The provisions of this Agreement shall be
-----------------
construed and interpreted, and all rights and obligations of the parties hereto
determined, in accordance with the internal laws of the State of New York
applicable to contracts made and to be performed in the State of New York. This
Agreement, together with all documents referred to herein, constitutes the
entire Agreement between the parties with respect to the matters addressed
herein and may not be modified except by a writing executed by the Collateral
Agent and the Borrower and delivered by the Collateral Agent to the Borrower.
12. Severability. If any Section of this Agreement or part thereof
------------
shall for any reason be held or adjudged to be invalid, illegal or unenforceable
by any court of competent jurisdiction, such Section or part thereof so
adjudicated invalid, illegal or unenforceable
-6-
shall be deemed separate, distinct and independent, and the remainder of this
Agreement shall remain in full force and effect and shall not be affected by
such holding or adjudication.
13. FCC Compliance. Notwithstanding anything contained herein which
--------------
may be construed to the contrary, no action shall be taken by the Collateral
Agent which may require the consent or approval of the FCC unless and until all
requirements of the Communications Act requiring the consent to or approval of
such action by the FCC have been satisfied. The Borrower covenants that, upon
request of the Collateral Agent, the Borrower shall cause to be filed such
applications and take such other action as may be requested by the Collateral
Agent to obtain consent or approval of the FCC to any action contemplated by
this Agreement and to give effect to the security interest of the Collateral
Agent hereunder, including, without limitation, the execution of an application
for consent by the FCC to an assignment or transfer involving a change in
ownership or control pursuant to the provisions of the Communications Act. The
Borrower hereby irrevocably appoints the Collateral Agent its true and lawful
attorney-in-fact, effective upon the occurrence and during the continuation of a
Default, in its name and stead, to execute and file all necessary applications
with the FCC. The power of attorney granted hereby is coupled with an interest
and shall be irrevocable.
14. Counterparts. This Agreement may be executed in multiple
------------
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.
15. Pledge of Additional Securities. Pursuant to the Loan Agreement,
-------------------------------
the Borrower agrees to assign and grant security title to, and a security
interest in, any debt or equity securities acquired by the Borrower after the
date hereof (including, but not limited to, those securities acquired in
connection with a Permitted Asset Sale or as an Investment, as required by
Section 7.6 of the Loan Agreement). The Borrower agrees to execute, deliver and
-----------
record any amendments hereto, documents, instruments, stock powers and UCC-1
financing statements deemed by the Collateral Agent to be necessary or
appropriate to create or perfect the security interest described in the
foregoing sentence.
[Remainder of this page intentionally left blank.]
-7-
IN WITNESS WHEREOF, the undersigned parties hereto have executed this
Agreement by and through their duly authorized officers as of the day and year
first above written.
BORROWER: EVERGREEN MEDIA CORPORATION OF
LOS ANGELES, a Delaware
corporation
By:
--------------------------
Title:
-----------------------
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC.
By:
--------------------------
Title:
-----------------------
Schedule 1
----------
Subsidiaries
EXHIBIT C
---------
FORM OF
COLLATERAL ASSIGNMENT OF TRUST INTERESTS
THIS COLLATERAL ASSIGNMENT OF TRUST INTERESTS (the
"Assignment"), made as of the _____ day of April, 1997 by the undersigned
entities (the "Beneficiaries") in favor of Toronto Dominion (Texas), Inc., as
collateral agent for itself and on behalf of the Administrative Agent, the
Lenders and the Issuing Bank (as defined in the Loan Agreement described below)
(the "Collateral Agent"),
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, Evergreen Media Corporation of Los Angeles, a
Delaware corporation (the "Borrower"), the various financial institutions whose
names appear as lenders on the signature pages to the Loan Agreement (as defined
below) (together with any other financial institution which subsequently becomes
a `Lender' under the Loan Agreement, as such term is defined herein, the
"Lenders") and Toronto Dominion (Texas), Inc., as administrative agent for the
Lenders (the "Administrative Agent"), are parties to a certain Second Amended
and Restated Loan Agreement of even date herewith (as amended, modified or
supplemented from time to time, the "Loan Agreement") pursuant to which the
Lenders have agreed to make Loans to the Borrower in an aggregate principal
amount not to exceed the Commitments; and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as
collateral agent for itself, and on behalf of itself in its capacity as the
Administrative Agent, the Lenders and the Issuing Bank, in connection with the
transactions contemplated by the Loan Agreement; and
WHEREAS, to secure the payment and performance of, among
other things, all obligations of the Borrower under the Loan Agreement and the
Notes, each of the Beneficiaries has agreed to assign to the Collateral Agent,
all of such Beneficiary's interest in the trusts listed on Schedule 1 attached
----------
hereto (the "Trusts");
NOW, THEREFORE, in consideration of the sum of Ten and No/100
Dollars ($10.00) in hand paid and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each of the
Beneficiaries, as
-1-
beneficiaries of the Trusts, hereby sells, assigns, transfers, conveys and
grants unto the Collateral Agent for itself and on behalf of the Administrative
Agent, the Lenders, the Issuing Bank and their respective successors and
assigns, all of such Beneficiary's right, title and interest in and to, and a
continuing security interest in and security title to, the Trusts in which it
has any interest, including, without limitation, with respect to such interests,
the right to receive all proceeds, distributions of assets, income, profits,
surplus or other compensation by way of income or liquidating distributions, in
cash or in kind, from the Trusts, including such right, title and interest now
held by such Beneficiary or which is hereafter acquired by it (the "Assigned
Rights"), as security for payment and performance of all Obligations, including
any extensions, renewals or amendments thereto, however created, acquired,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due.
TO HAVE AND TO HOLD UNTO the Collateral Agent, for the
benefit of itself and the Administrative Agent, the Lenders and the Issuing
Bank, and their successors and assigns forever, upon and subject to the
following terms and conditions:
1. For purposes of this Assignment, capitalized terms
used herein shall have the meanings ascribed thereto in the Loan Agreement
unless otherwise defined herein.
2. Each Beneficiary hereby constitutes and appoints the
Collateral Agent as its true and lawful attorney, in its name and stead upon the
occurrence and during the continuation of an Event of Default: (a) to collect
any and all distributions of cash and other assets due such Beneficiary from any
Trust or otherwise in respect of the Assigned Rights and (b) to use such
measures, legal or equitable, as in its discretion may be deemed necessary or
appropriate to enforce the payment thereof to the Collateral Agent. The power of
attorney hereby created is coupled with an interest and is irrevocable.
3. The Collateral Agent is hereby granted full
irrevocable power and authority to hold, use and apply all cash and non-cash
distributions received by it upon the occurrence and during the continuation of
an Event of Default (together with all interest earned thereon) in full or
partial payment of the Obligations and may convert any such non-cash
distributions to cash and may apply the proceeds thereof in payment of charges
or expenses incurred
-2-
by the Collateral Agent in connection with any and all things which the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank may
do or cause to be done hereunder, and thereafter in the order of application set
forth in the Loan Agreement.
4. None of the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank shall in any way be responsible for any
failure to do any or all of the things for which rights, interests, power and
authority are herein granted. The Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank shall be responsible only for the application
of such cash or other property as they actually receive under the terms hereof;
provided, however, that the failure of the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank, or any of them, to do any of the things
or exercise any of the rights, interests, powers and authorities hereunder shall
not be construed to be a waiver of any such rights, interests, powers and
authorities.
5. This Assignment shall not operate to place any
responsibility or obligation whatsoever upon the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them. None of
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
shall have assumed any liability of any Beneficiary or of any Trust as a result
of this Assignment. Each Beneficiary agrees to protect, indemnify and save
harmless the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank from and against all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses including, without limitation,
attorneys' fees and expenses (except as may arise from the gross negligence or
willful misconduct of the Person seeking indemnification, as determined by a
final non-appealable order of a court of competent jurisdiction) imposed upon or
incurred by the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, by reason of the Assigned Rights, this Assignment
and any claim and demand whatsoever which may be asserted against the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, by reason of any alleged obligation or undertaking to be performed or
discharged by the Collateral Agent, the Administrative Agent, the Lenders and
the Issuing Bank, or any of them, under this Assignment. In the event the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, incurs any liability, loss or damage by reason of this Assignment,
or in curing any default or breach by any Beneficiary of its
-3-
obligations under any Trust Agreement of any of the Trusts of which it is a
beneficiary (collectively, the "Trust Agreements"), or in the defense of any
claims or demands arising out of or in connection with this Assignment, the
amount of such liability, loss or damage shall be added to the Obligations
(except as may arise from the gross negligence or willful misconduct of the
Person seeking indemnification, as determined by a final non-appealable order of
a court of competent jurisdiction).
6. Each Beneficiary agrees to execute, deliver and
record, upon the request of the Collateral Agent, any and all instruments
requested by the Collateral Agent to carry these presents into effect or to
accomplish any other purpose deemed by the Collateral Agent to be necessary or
appropriate in connection with these presents, expressly including, but not
limited to, UCC-l financing statements.
7. Each Beneficiary hereby warrants and represents that
the copies of the Trust Agreements to which it is a party furnished to the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank are
true, complete and correct copies of such Trust Agreements, as amended through
the date hereof; that such Trust Agreements are unmodified and in full force and
effect; that the Assigned Rights have not been heretofore sold, assigned,
transferred, set over or encumbered by any instrument now in force, and will not
at any time during the term of this Assignment be sold, assigned, transferred,
set over or encumbered by it or by any Person or Persons whomsoever, without the
prior written consent of the Collateral Agent in accordance with the terms of
the Loan Agreement; that the Assigned Rights are all of such rights such
Beneficiary has arising from its interests in the Trusts and that the interests
of such Beneficiary in the Trusts represent the percentages shown on Schedule 1
----------
attached hereto of the interests in the Trusts; that such Beneficiary has the
right to sell, assign, transfer, set over and encumber the Assigned Rights to
the Collateral Agent and to grant to and confer upon the Collateral Agent the
Assigned Rights; that such Beneficiary is not at present in default in any
material respect under any Trust Agreement; and that all actions, approvals and
consents required by Applicable Law or by any agreement to which such
Beneficiary or any Trust is a party have been obtained.
8. Each Beneficiary hereby agrees that it will not,
except as permitted under the Loan Agreement, at any time during the term of
this Assignment, convey or encumber any of its interests, including, without
limitation, the
-4-
Assigned Rights, in any Trust in any manner whatsoever or consent to any
departure from or any modification or amendment to the Trust Agreements, without
the prior written consent of the Collateral Agent in accordance with the terms
of the Loan Agreement. Each Beneficiary agrees that it will perform all its
obligations as a beneficiary under the Trust Agreements to which it is a party
and that it will do all things necessary to maintain its interests in the Trusts
in full force and effect.
9. In the event any Beneficiary receives any payment or other
distribution of any kind or character from any Trust or from any other source
whatsoever in respect of such Beneficiary's interests in such Trust hereby
assigned, such payments or other distributions shall be received in trust for
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
and shall be promptly turned over by such Beneficiary to the Collateral Agent.
Each Beneficiary will xxxx its books and records, so as to clearly indicate that
such Beneficiary's interests in and rights to any of the Trusts are subject to
the terms of this Assignment.
10. This Assignment and the rights hereunder shall inure to the
benefit of each of the Collateral Agent, the Administrative Agent, the Lenders
and the Issuing Bank, and may be assigned in whole or in part by the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, in connection with any assignment of the Loan Agreement or the
Indebtedness evidenced thereby, as permitted thereunder, and shall be binding
upon each Beneficiary and its respective successors and assigns.
11. Notwithstanding anything contained herein to the contrary, it is
understood and agreed that although this Assignment is and shall be effective as
of the date hereof, no right or power granted hereunder or obligation under
Section 9 hereof shall be exercised or enforced by the Collateral Agent unless
and until an Event of Default, as hereinafter specified, shall occur and be
continuing hereunder. It is the intention of the parties hereto that beneficial
ownership of the Assigned Rights, including, without limitation, all
distribution rights, shall remain in each Beneficiary until an Event of Default,
as hereinafter specified, shall occur and be continuing. Any Event of Default
under the Loan Agreement shall constitute an "Event of Default" hereunder. Upon
the occurrence of any Event of Default, the Collateral Agent may exercise such
rights and remedies as are provided in the Loan Agreement and this Assignment.
The rights and remedies granted hereunder shall
be cumulative, and not exclusive. Each Beneficiary expressly agrees that none
of the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank shall in any event be under any obligation to resort to any right or remedy
hereunder prior to exercising any other rights any of them may have against such
Beneficiary or the Borrower or any other Person to secure repayment of the
Obligations, nor shall any of the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank be required to resort to any such other rights
prior to the exercise of rights and remedies hereunder.
12. Subject to Section 15 below, for so long as any of the Obligations
shall remain unpaid, and after the occurrence and during the continuation of an
Event of Default, the Collateral Agent may exercise all ownership or consensual
rights pertaining to the Assigned Rights of each Beneficiary and may notify and
instruct the Trusts to thereafter make all payments or distributions otherwise
due such Beneficiary in respect of the Assigned Rights payable directly to the
Collateral Agent. The Collateral Agent shall have the right to apply such
payments or distributions in reduction of the Obligations in accordance with the
terms of the Loan Agreement. Each Beneficiary hereby appoints the Collateral
Agent as such Beneficiary's true and lawful attorney-in-fact at such times to
exercise such ownership or consensual rights pertaining to the Assigned Rights
in any manner the Collateral Agent deems advisable for or against all matters
with respect to the Trusts. The power of attorney granted hereby is coupled
with an interest and shall be irrevocable.
13. Each Beneficiary undertakes and agrees, in connection herewith, to
deliver to the Collateral Agent a copy of any notice or mailing received by such
Beneficiary from the Trusts, at the address of the Collateral Agent given for
notices in Section 11.1 of the Loan Agreement.
------------
14. In addition to their rights and privileges under this Assignment,
each of the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank shall have all of the rights, powers and privileges of a secured
party under the Uniform Commercial Code as in effect in any applicable
jurisdiction.
15. Notwithstanding anything contained herein which may be construed
to the contrary, no action shall be taken by the Collateral Agent which may
require the consent or approval of the FCC unless and until all requirements of
the Communications Act requiring the consent to or approval
of such action by the FCC have been satisfied. Each Beneficiary covenants that,
upon request of the Collateral Agent, it shall cause to be filed such
applications and take such other action as may be requested by the Collateral
Agent to obtain consent or approval of the FCC to any action contemplated by
this Agreement and to give effect to the security interest of the Collateral
Agent hereunder, including, without limitation, the execution of an application
for consent by the FCC to an assignment or transfer involving a change in
ownership or control pursuant to the provisions of the Communications Act. Each
Beneficiary hereby irrevocably appoints the Collateral Agent its true and lawful
attorney-in-fact, effective upon the occurrence and during the continuation of
an Event of Default, in its name and stead, to execute and file all necessary
applications with the FCC. The power of attorney granted hereby is coupled with
an interest and shall be irrevocable.
16. This Assignment shall be deemed to be made pursuant to the
internal laws of the State of New York with respect to agreements made and to be
performed wholly within the State of New York and shall be construed,
interpreted, performed and enforced in accordance therewith.
17. This Assignment may be executed in multiple counterparts, each of
which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same instrument.
18. Upon payment in full of all principal and interest on the Notes,
full performance by the Borrower of all covenants, undertakings and obligations
under the Loan Agreement, the Notes and the other Loan Documents, and
satisfaction in full of all other Obligations and termination of the
Commitments, other than the Obligations which survive the termination of the
Loan Agreement as provided in Section 11.16 of the Loan Agreement, the
-------------
Collateral Agent shall return its interest in the Assigned Rights to the
Beneficiaries.
19. Pursuant to Section 5.12 of the Loan Agreement, any Subsidiary of
------------
the Borrower which acquires an interest in a trust (whether by Acquisition,
creation or designation) is required to enter into this Assignment, if
applicable, by executing and delivering to the Administrative Agent an
instrument in the form of Annex I attached hereto. Upon the execution and
-------
delivery of Annex I by such Subsidiary, such Subsidiary shall become a
-------
Beneficiary hereunder with the same force and effect as if originally named as a
Beneficiary herein. The execution and delivery of any instrument adding an
additional Beneficiary as a party to this Assignment shall not require the
consent of any other Beneficiary hereunder. The rights and obligations of each
Beneficiary hereunder shall remain in full force and effect notwithstanding the
addition of any Beneficiary hereunder.
20. Each Beneficiary further agrees to assign and grant security title to,
and a security interest in, any Trust interests obtained by such Beneficiary
after the date hereof. Each Beneficiary agrees to execute, deliver and record
any amendments hereto, documents, instruments and UCC-1 financing statements
deemed by the Collateral Agent to be necessary or appropriate to create or
perfect the security interest described in the foregoing sentence.
[Remainder of this page intentionally left blank.]
IN WITNESS WHEREOF, each of the undersigned Beneficiaries and the
Collateral Agent have caused this instrument to be executed by their duly
authorized representatives as of the day and year first above written.
BENEFICIARIES: By: ____________________ *
In his capacity as
Assistant Secretary of
each of the Beneficiaries
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC.
By:
Its:
* Schedule 1 - List of Beneficiaries, Trusts and Interests Assigned
Schedule 1
----------
List of Beneficiaries, Trusts
and
Beneficiary Interests Assigned
% of Trust
Beneficiary Name of Trust Interest
------------- ------------- ----------
Annex 1 to Collateral
Assignment of Trust Interests -
Supplement No. ____
Supplement No. ____ (this "Supplement") dated as of __________
___, _____ to the Collateral Assignment of Trust Interests dated as of
April __, 1997 (the "Assignment") by each of the parties listed on the
signature pages thereto and those additional entities that thereafter
become parties thereto (each a "Beneficiary") and Toronto Dominion
(Texas), Inc., as collateral agent as described below (the "Collateral
Agent").
WITNESSETH:
WHEREAS, the transactions recited on the first page of the Assignment have
taken place; and
WHEREAS, capitalized terms used herein and not otherwise defined herein
shall have the meanings assigned to such terms in the Assignment;
WHEREAS, the Beneficiaries have entered into the Assignment in order to
induce the Lenders to make the Loans; and
WHEREAS, pursuant to Section 5.12 of the Loan Agreement, any Subsidiary of
------------
the Borrower that acquires an interest in any trust (whether by Acquisition,
creation or designation) is required to enter into the Assignment, if
applicable, and the execution of the Assignment by the undersigned Subsidiary
(the "New Beneficiary") may be accomplished by the execution of this Supplement
in favor of the Collateral Agent;
NOW, THEREFORE, for and in consideration of the foregoing, Ten and No/100
Dollars ($10.00) in hand paid, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the New Beneficiary
hereby agrees as follows:
SECTION 1. In accordance with Section 19 of the Assignment the New
----------
Beneficiary, by its signature below, becomes a `Beneficiary' under the
Assignment with the same force and effect as if originally named therein as a
`Beneficiary' and the New Beneficiary hereby (a) agrees to all of the terms and
provisions of the Assignment applicable
to it as a `Beneficiary' thereunder and (b) represents and warrants that the
representations and warranties made by it as a `Beneficiary' thereunder are true
and correct on and as of the date hereof. In furtherance of the foregoing, the
New Beneficiary does hereby grant and assign to the Collateral Agent, for the
benefit of itself, the Administrative Agent, the Lenders and the Issuing Bank,
as a beneficiary of the trusts listed on Schedule 1 attached hereto
----------
(collectively, the "Trusts"), all of such New Beneficiary's right, title and
interest in and to, and a continuing security interest in and security title to,
its interests in the Trusts, including, without limitation, with respect to such
interests, the right to receive all proceeds, distributions of assets, income,
profits, surplus or other compensation by way of income or liquidating
distributions, in cash or in kind, from the Trusts, including such right, title
and interest now owned by such Beneficiary or which is hereafter acquired by it,
as security for the Obligations. Each reference to a `Beneficiary' in the
Assignment shall be deemed to include the New Beneficiary. The Assignment is
incorporated herein by reference.
SECTION 2. The New Beneficiary represents and warrants to the Collateral
Agent that this Supplement has been duly executed and delivered by the New
Beneficiary and constitutes the legal, valid and binding obligation of the New
Beneficiary, enforceable against it in accordance with its terms, except as
enforceability thereof may be limited by bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or other similar laws affecting creditors'
rights generally and general principles of equity (regardless of whether such
enforceability is considered in a proceeding at law or in equity).
SECTION 3. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
SECTION 4. Except as expressly supplemented hereby, the Assignment shall
remain in full force and effect.
SECTION 5. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
IN WITNESS WHEREOF, the New Beneficiary has duly executed this Supplement
to the Assignment as of the day and year first above written.
NEW BENEFICIARY:
------
Address:
By:
------------------ Name:
Title:
------------------
COLLATERAL AGENT:
SCHEDULE 1
----------
List of Beneficiaries, Trusts and
Beneficiary Interests Assigned
Name of % of Trust
New Beneficiary Trust Interest
----------------- ------- ----------
EXHIBIT D
FORM OF SECOND AMENDED AND RESTATED
PARENT COMPANY GUARANTY
Evergreen Media Corporation
As of April ___, 1997
WHEREAS, Evergreen Media Corporation of Los Angeles, a Delaware corporation
(the "Borrower"), the various financial institutions whose names appear as
lenders on the signature pages to the Loan Agreement (as defined below)
(together with any other financial institution which subsequently becomes a
`Lender' under the Loan Agreement, as such term is hereinafter defined, the
"Lenders"), and Toronto Dominion (Texas), Inc. as administrative agent for the
Lenders (the "Administrative Agent") have executed and delivered an Amended and
Restated Loan Agreement (as executed on the date hereof and as the same may be
amended from time to time, the "Loan Agreement"), pursuant to which the Lenders
have agreed to make loans in an aggregate principal amount not to exceed the
Commitments (the "Loans") to the Borrower, as evidenced by those certain
promissory notes of even date from the Borrower to each of the Lenders (as
executed on the date hereof and as such notes may be amended, modified, extended
or renewed from time to time, the "Notes");
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as collateral
agent for itself and for the ratable benefit of the Administrative Agent, the
Lenders and the Issuing Bank (as defined in the Loan Agreement) in connection
with the transactions contemplated by the Loan Agreement (in such capacity, the
"Collateral Agent");
WHEREAS, the Borrower is a wholly-owned Subsidiary of the undersigned;
WHEREAS, the undersigned (the "Guarantor"), the Borrower, and the
Subsidiaries of the Borrower are mutually dependent on each other in the conduct
of their respective businesses as an integrated operation;
WHEREAS, the Guarantor has determined that its execution, delivery and
performance of this Guaranty
-1-
directly benefit, and are within the corporate purposes and in the best
interests of, the Guarantor;
WHEREAS, as a condition to the Lenders' extending the Loans, the Guarantor
has agreed to execute this Guaranty (the "Guaranty") guaranteeing the payment
and performance by the Borrower of its obligations and covenants under the
Notes, the Loan Agreement and the other Loan Documents (the Loan Agreement, the
Notes and the other Loan Documents as executed on the date hereof and as they
may be amended, modified or extended from time to time being hereinafter
referred to as the "Guaranteed Agreements"); and
WHEREAS, capitalized terms used herein and not otherwise defined herein
shall be used as defined in the Loan Agreement;
NOW, THEREFORE, in consideration of the above premises, Ten Dollars
($10.00) in hand paid and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Guarantor hereby guarantees to
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank: (a) full and prompt payment and performance of all obligations of the
Borrower to the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, under the Loan Agreement, the Notes and the other
Loan Documents (including, without limitation, any Interest Hedge Agreements
between the Borrower, on the one hand, and the Administrative Agent and the
Lenders, or any of them, on the other hand, any Additional Facility Indebtedness
and any interest, fees and other charges in respect of the Notes or the other
Loan Documents that would accrue but for the filing of a bankruptcy action with
respect to the Borrower, whether or not such claim is allowed in such bankruptcy
action), as they may be amended from time to time, or as a result of making the
Loans; (b) payment of any and all damage which the Collateral Agent, the
Administrative Agent, the Lenders, the Issuing Bank, or any of them, may suffer
by reason of a breach of any obligation, covenant or undertaking with respect to
this Agreement, the Loan Agreement, the Notes or any other Loan Document by the
Borrower or any other obligor thereunder; and (c) payment and performance of all
of the obligations of any obligor to the Collateral Agent, the Administrative
Agent, the Lenders, the Issuing Bank, or any of them, under this Agreement, the
Loan Agreement and the other Loan Documents, or as a result of making the Loans;
and any extensions, renewals or amendments of any of the foregoing, including
any interest thereon, plus reasonable attorneys' fees and expenses if the
obligations represented
-2-
by this Guaranty are collected by law, through an attorney-at-law, or under
advice therefrom (all of the foregoing obligations (a), (b), and (c) being
hereinafter collectively referred to as the "Obligations"). Each Obligation
shall rank pari passu with each other Obligation.
---- -----
The Guarantor and the Collateral Agent hereby further agree that:
1. Regardless of whether any proposed guarantor or any other Person or
Persons is or are or shall become in any other way responsible to the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, for or in respect of the Obligations or any part thereof, and regardless
of whether or not any Person or Persons now or hereafter responsible to the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, for the Obligations or any part thereof, whether under this
Guaranty or otherwise, shall cease to be so liable, the Guarantor hereby
declares and agrees that this Guaranty shall be a several obligation, shall be a
continuing guaranty and shall be operative and binding, and that the Guarantor
shall have no right of subrogation with respect to this Guaranty.
2. Upon this Guaranty's being executed and coming into the hands of the
Collateral Agent, this Guaranty shall be deemed to be finally executed and
delivered by the Guarantor and shall not be subject to or affected by any
promise or condition affecting or limiting the Guarantor's liability, and no
statement, representation, agreement or promise on the part of the Collateral
Agent, the Administrative Agent, the Lenders, the Issuing Bank, the Borrower, or
any of them, or any officer, employee or agent thereof, unless contained herein
forms any part of this Guaranty or has induced the making hereof or shall be
deemed in any way to affect the Guarantor's liability hereunder.
3. No alteration or waiver of this Guaranty or of any of its terms,
provisions or conditions shall be binding upon the parties against whom
enforcement is sought unless made in writing and signed by an authorized officer
of such party.
4. The Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, may from time to time, without exonerating or
releasing the Guarantor in any way under this Guaranty, (a) take such further or
other security or securities for the Obligations or any part thereof as the
Collateral Agent, the Administrative Agent,
-3-
the Lenders and the Issuing Bank, or any of them, may deem proper, or (b)
release, discharge, abandon or otherwise deal with or fail to deal with any
guarantor of the Obligations or any security or securities therefor or any part
thereof now or hereafter held by the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, or (c) amend, modify, extend,
accelerate or waive in any manner any of the provisions, terms, or conditions of
the Guaranteed Agreements, all as the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank, or any of them, may consider expedient
or appropriate in their sole discretion. Without limiting the generality of the
foregoing, or of Section 5 hereof, it is understood that the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them, may,
without exonerating or releasing the Guarantor, give up, or modify or abstain
from perfecting or taking advantage of any security for the Obligations and
accept or make any compositions or arrangements, and realize upon any security
for the Obligations when, and in such manner, as the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, may deem
expedient, all without notice to the Guarantor.
5. The Guarantor acknowledges and agrees that no change in the nature or
terms of the Obligations or any of the Guaranteed Agreements, or other
agreements, instruments or contracts evidencing, related to or attendant with
the Obligations (including any novation), shall discharge all or any part of the
liabilities and obligations of the Guarantor pursuant to this Guaranty; it being
the purpose and intent of the Guarantor, the Collateral Agent, the
Administrative Agent, the Lenders and the Noteholders that the covenants,
agreements and all liabilities and obligations of the Guarantor hereunder are
absolute, unconditional and irrevocable under any and all circumstances.
Without limiting the generality of the foregoing, the Guarantor agrees that
until each and every one of the covenants and agreements of this Guaranty is
fully performed, the Guarantor's undertakings hereunder shall not be released,
in whole or in part, by any action or thing which might, but for this paragraph
of this Guaranty, be deemed a legal or equitable discharge of a surety or
guarantor, or by reason of any waiver, omission of the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, or their
failure to proceed promptly or otherwise, or by reason of any action taken or
omitted by the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, whether or not such action or failure to act
varies or increases the risk of, or
-4-
affects the rights or remedies of, the Guarantor or by reason of any further
dealings between the Borrower, the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, or any other guarantor or
surety, and the Guarantor hereby expressly waives and surrenders any defense to
its liability hereunder, or any right of counterclaim or offset of any nature or
description which it may have or which may exist based upon, and shall be deemed
to have consented to, any of the foregoing acts, omissions, things, agreements
or waivers.
6. The Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, may, without demand or notice of any kind upon or
to Guarantor, at any time or from time to time when any amount shall be due and
payable hereunder by the Guarantor, if the Borrower shall not have timely paid
its Obligations, set off and appropriate any property, balances, credit accounts
or moneys of the Guarantor in the possession of the Collateral Agent, the
Administrative Agent, the Lenders, the Issuing Bank, or any of them, or under
any of their control for any purpose, which property, balances, credit accounts
or moneys shall thereupon be turned over and remitted to the Collateral Agent,
to be held and applied to the Obligations by the Collateral Agent in accordance
with the Loan Agreement.
7. The creation or existence from time to time of Obligations in excess of
the amount committed to or outstanding on the date of this Guaranty is hereby
authorized, without notice to the Guarantor, and shall in no way impair or
affect this Guaranty or the rights of the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank, or any of them, herein.
8. Upon the bankruptcy or winding up or other distribution of assets of
the Borrower or any Subsidiary of the Borrower or of any surety or guarantor,
for any Obligations of the Borrower to the Collateral Agent, the Administrative
Agent, the Lenders, the Issuing Bank, or any of them, the rights of the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
against the Guarantor shall not be affected or impaired by the omission of the
Collateral Agent, the Administrative Agent, the Lenders, the Issuing Bank, or
any of them, to prove its or their claim, as appropriate, or to prove its or
their full claim, as appropriate, and the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank may prove such claims as they see fit
and may refrain from proving any claim and in their respective discretion they
-5-
may value as they see fit or refrain from valuing any security held by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, without in any way releasing, reducing or otherwise affecting the
liability to the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank of the Guarantor.
9. Any amount received by the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, from whatsoever source and
applied toward the payment of the Obligations shall be applied in such order of
application as is set forth in the Loan Agreement.
10. The Guarantor hereby expressly waives (a) notice of acceptance of this
Guaranty, (b) notice of the existence or creation of all or any of the
Obligations, (c) presentment, demand, notice of dishonor, protest and all other
notices whatsoever, (d) all diligence in collection or protection of or
realization upon the Obligations or any part thereof, any obligation hereunder,
or any security for any of the foregoing, (e) all rights of subrogation,
indemnification, contribution and reimbursement against the Borrower, (f) all
rights to enforce any remedy the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, may have against the Borrower and
(g) any benefit of, or right to participate in, any collateral or security now
or hereinafter held by the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, in respect of the Obligations,
even upon payment in full of the Obligations, except to the extent such waiver
would be expressly prohibited by Applicable Law. If a claim is ever made upon
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, for the repayment or recovery of any amounts received by
any of them in payment of any of the Obligations and such Person repays all or
part of such amount by reason of (a) any judgment, decree or order of any court
or administrative body having jurisdiction over such Person or any of its
property, or (b) any settlement or compromise of any such claim effected by such
Person with any such claimant, including the Borrower, then in such event the
Guarantor agrees that any such judgment, decree, order, settlement, or
compromise shall be binding upon the Guarantor, notwithstanding any revocation
hereof or the cancellation of any promissory note or other instrument evidencing
any of the Obligations, and the Guarantor shall be and remain obligated to such
Person hereunder for the amount so repaid or recovered to the same
-6-
extent as if such amount had never originally been received by such Person.
11. The Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank may each, to the extent permitted under the Loan Agreement, and
without notice of any kind, sell, assign or transfer all or any of the
Obligations, and in such event each and every immediate and successive assignee,
transferee, or holder of all or any of the Obligations, shall have the right to
enforce this Guaranty, by suit or otherwise, for the benefit of such assignee,
transferee or holder as fully as if such assignee, transferee or holder were
herein by name specifically given such rights, powers and benefits.
12. No delay by the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, of any right or remedy shall preclude other or further
exercise thereof or the exercise of any other right or remedy. No action by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, permitted hereunder shall in any way impair or affect this
Guaranty. For the purpose of this Guaranty, the Obligations shall include,
without limitation, all Obligations of the Borrower to the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, notwithstanding any
right or power of any third party, individually or in the name of the Borrower
or any other Person, to assert any claim or defense as to the invalidity or
unenforceability of any such Obligation, and no such claim or defense shall
impair or affect the obligations of the Guarantor hereunder.
13. This Guaranty shall be binding upon the Guarantor, its successors and
assigns and inure to the benefit of the successors and assigns of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank. The
Guarantor shall not assign its rights or obligations under this Guaranty nor
shall the Guarantor amend this Guaranty, except in accordance with the
provisions of the Loan Agreement.
14. This is a Guaranty of payment and not of collection. In the event the
Collateral Agent makes a demand upon the Guarantor under this Guaranty pursuant
to the terms of the Loan Agreement, the Guarantor shall be held and bound to the
Collateral Agent, the Administrative Agent,
-7-
the Lenders and the Issuing Bank directly as debtor in respect of the payment of
the amounts hereby guaranteed. All costs and expenses, including reasonable
attorneys' fees and expenses, incurred by the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, in
obtaining performance of or collecting payments due under this Guaranty shall be
deemed part of the Obligations guaranteed hereby. Any notice or demand which
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
may wish to give shall be served upon the Guarantor in the fashion prescribed
for notices in Section 11.1 of the Loan Agreement to the Guarantor's last known
------------
place of address, and the notice so sent shall be deemed to be served as set
forth in Section 11.1 of the Loan Agreement.
------------
15. The Guarantor expressly represents and acknowledges that any financial
accommodations by the Collateral Agent, the Administrative Agent, the Lenders
and the Issuing Bank, or any of them, to the Borrower, including, without
limitation, the extension of the Loans, and the execution and delivery of the
Loan Agreement by the parties thereto, are and will be of direct interest,
benefit and advantage to the Guarantor.
16. The Guarantor covenants and agrees that so long as any amount is owing
on account of Obligations or otherwise pursuant to this Guaranty, the Guarantor
shall permit representatives of the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, after reasonable notice, to visit and inspect
properties of the Guarantor during normal business hours, inspect the
Guarantor's books and records, and discuss with the principal officers of the
Guarantor its businesses, assets, liabilities, financial positions, results of
operations and business prospects.
17. The Guarantor hereby agrees to provide to the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, from time to time and
promptly upon each request, such information regarding the business, assets,
liabilities, financial position and performance, projections or business
prospects as any of them may reasonably request. The Guarantor shall further
provide to the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, (a) within forty-five (45) days after the end of each fiscal
quarter of the Guarantor, Form 10-Q of the Guarantor and its Subsidiaries on a
consolidated basis as filed with the Securities and Exchange Commission for the
fiscal quarter then ended, (b) within one hundred twenty (120) days after the
end of each fiscal year of the Guarantor, Form 10-K of
-8-
the Guarantor and its Subsidiaries on a consolidated basis as filed with the
Securities and Exchange Commission for the fiscal year then ended, and (c)
promptly upon the filing or delivery of such items, copies of all other material
reports, proxies, notices to shareholders and other materials filed by the
Guarantor with the Securities and Exchange Commission or required by any Federal
or state securities laws, rules, or regulations, to be delivered by the
Guarantor to the shareholders of the Guarantor.
18. The Guarantor agrees that it shall not, and shall not permit its
Subsidiaries to, create, assume, incur or otherwise become or remain obligated
in respect of, or permit to be outstanding, Indebtedness for Money Borrowed to
the extent that a breach of the Total Leverage Covenant results. In the event
that the Guarantor creates an Unrestricted Subsidiary, the Guarantor agrees that
any Indebtedness for Money Borrowed of such Unrestricted Subsidiary shall be
without recourse, by way of Lien or Guaranty, against the Parent Company, the
Borrower or any other Subsidiary.
19. The Guarantor agrees to indemnify or hold harmless each Lender, the
Collateral Agent, the Administrative Agent, and the Issuing Bank, and each of
their respective affiliates, employees, representatives, officers and directors
(any of the foregoing shall be an "Indemnitee") from and against any and all
claims, liabilities, losses, damages, actions, attorneys' fees and expenses (as
such fees and expenses are incurred) and demand by any party, including the
reasonable costs of investigating and defending such claims, whether or not the
Guarantor is the prevailing party (a) resulting from any breach or alleged
breach by the Guarantor of any representation or warranty made hereunder, or (b)
arising out of any claims against the Lender, the Administrative Agent, the
Collateral Agent, the Issuing Bank or any of them by any shareholder or other
investor in or lender to the Guarantor, by any brokers or finders or investment
advisors or investment bankers retained by the Guarantor or by any other third
party, for any reason whatsoever, or (c) in connection with the execution,
delivery and enforcement of this Guaranty and the other Loan Documents to which
the Parent Company is a party, and any subsequent amendments thereto or waivers
of any of the provisions thereof; unless the person seeking indemnification
hereunder is determined in such case to have acted or failed to act with gross
negligence or wilful misconduct by a non-appealable judicial order. If any
claim, demand, action or cause of action is asserted against any Indemnitee
entitled to indemnification under the
-9-
provisions of this Section 19, such Indemnitee shall use reasonable efforts
under the circumstances to notify the Parent Company within thirty (30) days of
its receipt of notice or knowledge of such claim, demand, action or cause of
action, provided that the failure of any Indemnitee to give notice as provided
herein shall not relieve the Parent Company of any obligations under this
Section 19 except to the extent that the Parent Company is actually prejudiced
in any material respect by such failure to give notice. The obligations of the
Parent Company under this Section 19 are in addition to, and shall not otherwise
limit, any liabilities which the Parent Company might otherwise have in
connection with any warranties or similar obligations of the Parent Company in
any other agreement or instrument or for any other reason.
20. This Guaranty shall be construed in accordance with and governed by
the internal laws of the State of New York applicable to contracts made and to
be performed in the State of New York. If any action or proceeding shall be
brought by the Collateral Agent, in order to enforce any right or remedy under
this Guaranty the Guarantor hereby consents and will submit to the jurisdiction
of any state or federal court of competent jurisdiction sitting within the area
comprising the Southern District of New York on the date of this Guaranty. The
Guarantor hereby agrees that service of the summons and complaint and all other
process which may be served in any such suit, action or proceeding may be
effected by mailing by registered mail a copy of such process to the principal
place of business of the Parent Company and that personal service of process
shall not be required. Nothing herein shall be construed to prohibit service of
process by any other method permitted by law, or the bringing of any suit,
action or proceeding in any other jurisdiction. The Guarantor agrees that final
judgment in such suit, action or proceeding shall be conclusive and may be
enforced in any other jurisdiction by suit on the judgment or in any other
manner provided by law. THE GUARANTOR HEREBY WAIVES THE RIGHT TO A TRIAL BY
JURY IN ANY COURT AND IN ANY ACTION OR PROCEEDING OF ANY TYPE IN WHICH THE
GUARANTOR IS A PARTY, AS TO ALL MATTERS AND THINGS ARISING DIRECTLY OR
INDIRECTLY OUT OF THE LOAN AGREEMENT, THIS GUARANTY OR ANY OF THE OTHER LOAN
DOCUMENTS.
-10-
IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed
as of the date first above written.
EVERGREEN MEDIA CORPORATION,
a Delaware corporation
By:
-------------------------------
Its:
------------------------------
EXHIBIT H
---------
FORM OF
SECOND AMENDED AND RESTATED STOCK PLEDGE AGREEMENT
EVERGREEN MEDIA CORPORATION
THIS SECOND AMENDED AND RESTATED STOCK PLEDGE AGREEMENT (the
"Agreement"), entered into as of this ____ day of April, 1997, by Evergreen
Media Corporation, a Delaware corporation (the "Pledgor") in favor of Toronto
Dominion (Texas), Inc., as collateral agent for itself and on behalf of itself,
in its capacity as the Administrative Agent, the Lenders and the Issuing Bank
(as defined in the Loan Agreement described below) (the "Collateral Agent"),
W I T N E S S E T H:
-------------------
WHEREAS, Evergreen Media Corporation of Los Angeles, a Delaware
corporation (the "Borrower"), the various financial institutions whose names
appear as lenders on the signature pages to the Loan Agreement (as defined
below) (together with any other financial institution which subsequently becomes
a `Lender' under the Loan Agreement, as such term is defined herein, the
"Lenders") and Toronto Dominion (Texas), Inc., as administrative agent for the
Lenders (the "Administrative Agent"), are parties to a certain Second Amended
and Restated Loan Agreement of even date herewith (as amended, modified or
supplemented from time to time, the "Loan Agreement") pursuant to which the
Lenders have agreed to make Loans to the Borrower in an aggregate principal
amount not to exceed the Commitments; and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as collateral
agent for itself, and on behalf of itself, in its capacity as the Administrative
Agent, the Lenders and the Issuing Bank, in connection with the transactions
contemplated by the Loan Agreement; and
WHEREAS, to secure the payment and performance of, among other things,
all obligations of the Borrower under the Loan Agreement, the Notes and the
other Loan Documents, the Pledgor, as the owner of one hundred percent (100%) of
the issued and outstanding Capital Stock of the Borrower, has agreed to pledge
the shares of Capital Stock (the "Stock") owned by the Pledgor in the Borrower,
which is the only directly-owned corporate Subsidiary of the Pledgor as of the
date hereof (other
-1-
than Unrestricted Subsidiaries) to the Collateral Agent to secure the
Obligations (as defined below);
NOW, THEREFORE, the parties hereto agree that capitalized terms used
herein shall have the meanings ascribed to them in the Loan Agreement to the
extent not otherwise defined or limited herein, and further agree as follows:
1. Warranty. The Pledgor hereby represents and warrants to the
--------
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
that, except for the security interest created hereby, the Pledgor owns the
Stock, which, as of the date hereof, is all of the issued and outstanding stock
of the Borrower, free and clear of all Liens, that the Stock is duly issued,
fully paid and non-assessable and that the Pledgor has the unencumbered right to
pledge the Stock.
2. Security Interest. The Pledgor hereby unconditionally grants and
-----------------
assigns to the Collateral Agent, for itself and on behalf of the Administrative
Agent, the Lenders, the Issuing Bank and their respective successors and
assigns, a continuing security interest in and security title to the Stock. The
Pledgor has delivered to and deposited with the Collateral Agent herewith all of
its right, title and interest in and to the Stock, together with certificates
representing the Stock and stock powers endorsed in blank, as security for
payment and performance of all obligations of the Pledgor to the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, under that certain Parent Company Guaranty of even date herewith given by
the Pledgor for the benefit of the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, and any extensions, renewals or amendments of
any of the foregoing, however created, acquired, arising or evidenced, whether
direct or indirect, absolute or contingent, now or hereafter existing, or due or
to become due (all of the foregoing obligations being hereinafter collectively
referred to as the "Obligations"); it being the intention of the parties hereto
that beneficial ownership of the Stock, including, without limitation, all
voting, consensual and dividend rights, shall remain in the Pledgor until the
occurrence of a Default (as defined below) under the terms hereof and until the
Collateral Agent shall notify the Pledgor of the Collateral Agent's exercise of
voting and dividend rights to the Stock pursuant to Section 9 of this Agreement.
---------
3. Additional Shares. In the event that, during the term of this
-----------------
Agreement:
(a) any stock dividend, stock split, reclassification, readjustment
or other change is
-2-
declared or made in the capital structure of the Borrower, all new,
substituted and additional shares, or other securities, issued by reason of
any such change and received by the Pledgor or to which the Pledgor shall
be entitled shall be promptly delivered to the Collateral Agent, together
with stock powers endorsed in blank by the Pledgor, and shall thereupon
constitute Stock to be held by the Collateral Agent under the terms of this
Agreement; and
(b) any subscriptions, warrants or any other rights or options shall
be issued in connection with the Stock, all new stock or other securities
acquired through such subscriptions, warrants, rights or options by the
Pledgor shall be promptly delivered to the Collateral Agent and shall
thereupon constitute Stock to be held by the Collateral Agent under the
terms of this Agreement.
4. Default. In the event of the occurrence of an Event of Default
-------
under the terms of the Loan Agreement, and so long as any such Event of Default
is continuing (any of such occurrences being hereinafter referred to as a
"Default"), subject to Section 13 hereof, the Collateral Agent may sell or
----------
otherwise dispose of the Stock at a public or private sale or make other
commercially reasonable disposition of the Stock or any portion thereof after
ten (10) days' notice to the Pledgor, and the Collateral Agent, the
Administrative Agent, the Issuing Bank or any Lender may purchase the Stock or
any portion thereof at any public sale. The proceeds of the public or private
sale or other disposition shall be applied to the costs of the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank incurred in
connection with the sale, including, without limitation, any costs under
Section 7(a) hereof and thereafter in such order as is provided in the Loan
------------
Agreement. In the event the proceeds of the sale or other disposition of the
Stock shall be insufficient to satisfy the Obligations, the Pledgor shall remain
liable for any such deficiency.
5. Additional Rights of Secured Party. In addition to its rights and
----------------------------------
privileges under this Agreement, the Collateral Agent, the Administrative Agent,
the Issuing Bank and each of the Lenders shall have all the rights, powers and
privileges of a secured party under the Uniform Commercial Code as in effect in
any applicable jurisdiction.
6. Return of Stock to the Pledgor; Etc. Upon payment in full of all
-----------------------------------
principal and interest on the Notes, full performance by the Borrower of all
covenants, undertakings and obligations under the Loan Agreement, the Notes and
the other Loan Documents, and satisfaction in full of all other
-3-
Obligations, other than the Obligations which survive the termination of the
Loan Agreement as provided in Section 11.16 of the Loan Agreement, the then
-------------
remaining Stock and all rights received by the Collateral Agent as a result of
its possessory interest in the Stock shall be returned to the Pledgor.
7. Disposition of Stock by Collateral Agent. The Stock is not
----------------------------------------
registered or qualified under the various Federal or state securities laws of
the United States and disposition thereof after default may be restricted to one
or more private (instead of public) sales in view of the lack of such
registration. The Pledgor understands that in connection with such disposition,
the Collateral Agent may approach only a restricted number of potential
purchasers and further understands that a sale under such circumstances may
yield a lower price for the Stock than if the Stock was registered and qualified
pursuant to Federal and state securities legislation and sold on the open
market. The Pledgor, therefore, agrees that:
(a) if the Collateral Agent shall, pursuant to the terms of this
Agreement, sell or cause the Stock or any portion thereof to be sold at a
private sale, the Collateral Agent shall have the right to rely upon the
advice and opinion of any national brokerage or investment firm having
recognized expertise and experience in connection with shares of radio
broadcast and other communication companies (but shall not be obligated to
seek such advice and the failure to do so shall not be considered in
determining the commercial reasonableness of such action) as to the best
manner in which to expose the Stock for sale and as to the best price
reasonably obtainable at the private sale thereof; and
(b) that such reliance shall be presumptive evidence that the
Collateral Agent has handled such disposition in a commercially reasonable
manner.
8. Pledgor's Obligations Absolute. The obligations of the Pledgor
------------------------------
under this Agreement shall be direct and immediate and not conditional or
contingent upon the pursuit of any remedies against the Pledgor or any other
Person, nor against other security or liens available to the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them, or
any of their respective successors, assigns or agents. The Pledgor hereby waives
any right to require that an action be brought against any other Person or to
require that resort be had to any security or to any balance of any deposit
account or credit on the books of the Collateral Agent or any of the Lenders or
the Issuing Bank in favor of any
-4-
other Person prior to the exercise of remedies hereunder, or to require action
hereunder prior to resort by the Collateral Agent, the Administrative Agent, the
Issuing Bank or any of the Lenders to any other security or collateral for the
Notes and the other Obligations.
9. Voting Rights.
-------------
(a) For so long as any of the Notes or any other Obligations remain
unpaid, after and during the continuation of a Default, but subject to the
provisions of Section 13 hereof, (i) the Collateral Agent may, upon ten
----------
(10) days' prior written notice to the Pledgor of its intention to do so,
exercise all voting rights and all other ownership or consensual rights of
the Stock, but under no circumstances is the Collateral Agent obligated by
the terms of this Agreement to exercise such rights, and (ii) the Pledgor
hereby appoints the Collateral Agent, which appointment shall be effective
on the 10th day following the giving of notice by the Collateral Agent as
provided in the foregoing Section 9(a)(i), the Pledgor's true and lawful
attorney-in-fact and IRREVOCABLE PROXY to vote the Stock in any manner the
Collateral Agent deems advisable for or against all matters submitted or
which may be submitted to a vote of shareholders. The power-of-attorney
granted hereby is coupled with an interest and shall be irrevocable.
(b) For so long as the Pledgor shall have the right to vote the Stock,
the Pledgor covenants and agrees that it shall not, without the prior
written consent of the Collateral Agent, vote or take any consensual
action with respect to the Stock which would constitute a Default.
10. Notices. All notices and other communications required or
-------
permitted hereunder shall be in writing, and shall be given in the manner and at
the addresses set forth in Section 11.1 of the Loan Agreement with respect to
------------
the Collateral Agent, the Administrative Agent and the Lenders, in the manner
set forth in Section 11.1 of the Loan Agreement with respect to the Pledgor at
------------
the address set forth on the signature page hereof.
11. Binding Agreement. The provisions of this Agreement shall be
-----------------
construed and interpreted, and all rights and obligations of the parties hereto
determined, in accordance with the internal laws of the State of New York
applicable to contracts made and to be performed in the State of New York. This
Agreement, together with all documents referred to herein, constitutes the
entire Agreement between the parties with respect
-5-
to the matters addressed herein and may not be modified except by a writing
executed by the Collateral Agent and the Pledgor and delivered by the Collateral
Agent to the Pledgor.
12. Severability. If any Section of this Agreement or part thereof
------------
shall for any reason be held or adjudged to be invalid, illegal or unenforceable
by any court of competent jurisdiction, such Section or part thereof so
adjudicated invalid, illegal or unenforceable shall be deemed separate, distinct
and independent, and the remainder of this Agreement shall remain in full force
and effect and shall not be affected by such holding or adjudication.
13. FCC Compliance. Notwithstanding anything contained herein which
--------------
may be construed to the contrary, no action shall be taken by the Collateral
Agent which may require the consent or approval of the FCC unless and until all
requirements of the Communications Act requiring the consent to or approval of
such action by the FCC have been satisfied. The Pledgor covenants that, upon
request of the Collateral Agent, the Pledgor shall cause to be filed such
applications and take such other action as may be requested by the Collateral
Agent to obtain consent or approval of the FCC to any action contemplated by
this Agreement and to give effect to the security interest of the Collateral
Agent hereunder, including, without limitation, the execution of an application
for consent by the FCC to an assignment or transfer involving a change in
ownership or control pursuant to the provisions of the Communications Act. The
Pledgor hereby irrevocably appoints the Collateral Agent its true and lawful
attorney-in-fact, effective upon the occurrence and during the continuation of a
Default, in its name and stead, to execute and file all necessary applications
with the FCC. The power of attorney granted hereby is coupled with an interest
and shall be irrevocable.
14. Counterparts. This Agreement may be executed in multiple
-------------
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.
[Remainder of this page intentionally left blank]
-6-
IN WITNESS WHEREOF, the undersigned parties hereto have executed this
Agreement by and through their duly authorized officers, as of the day and year
first above written.
PLEDGOR: EVERGREEN MEDIA CORPORATION, a
Delaware corporation
By:
--------------------------------
Title:
--------------------------
Address: 000 X. Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 0000
Xxxxxx, Xxxxx 00000
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC.
By:
--------------------------------
Title:
--------------------------
EXHIBIT I
---------
FORM OF SECOND AMENDED AND RESTATED SUBSIDIARY GUARANTY
As of April __, 1997
WHEREAS, the various financial institutions whose names appear as
lenders on the signature pages to the Loan Agreement (as defined below)
(together with any other financial institution which subsequently becomes a
`Lender' under the Loan Agreement, the "Lenders") and Toronto Dominion (Texas),
Inc. as administrative agent for the Lenders (the "Administrative Agent") have
executed and delivered a Second Amended and Restated Loan Agreement (as executed
on the date hereof and as the same may be amended from time to time, the "Loan
Agreement"), pursuant to which the Lenders have agreed to make loans in an
aggregate principal amount not to exceed the Commitments (the "Loans"), to
Evergreen Media Corporation of Los Angeles, a Delaware corporation (the
"Borrower"), as evidenced by those certain Revolving Notes and those certain
Term Notes of even date herewith from the Borrower to each of the Lenders (as
executed on the date hereof and as such notes may be amended, modified, extended
or renewed from time to time, the "Notes"); and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as
collateral agent for itself, and on behalf of itself, in its capacity as the
Administrative Agent, the Lenders and the Issuing Bank (as defined in the Loan
Agreement) in connection with the transactions contemplated by the Loan
Agreement (in such capacity, the "Collateral Agent"); and
WHEREAS, each of the undersigned is a Subsidiary of the Borrower; and
WHEREAS, the Borrower, the undersigned Subsidiaries (collectively, the
"Guarantors" and each, individually, a "Guarantors") and the Parent Company are
mutually dependent on each other in the conduct of their respective businesses
as an integrated operation, and the Borrower has as one of its corporate
purposes the obtaining of financing needed from time to time by the Guarantors,
with the Borrower's ability to obtain such financing being dependent, in part,
on the successful operations of and the properties owned by the Guarantors; and
-1-
WHEREAS, each of the Guarantors has determined that its execution,
delivery and performance of this Guaranty directly benefit and are within the
corporate or partnership purposes and in the best interests of such Guarantor;
and
WHEREAS, as a condition to the Lenders' making the Loans, each
Guarantor has agreed to execute this Subsidiary Guaranty (the "Guaranty")
guaranteeing the payment and performance by the Borrower of its obligations and
covenants under the Loan Agreement, the Notes and the other Loan Documents (the
Loan Agreement, the Notes and the other Loan Documents as executed as of the
date hereof and as the same may be amended, modified or extended from time to
time being hereinafter referred to as the "Guaranteed Agreements"); and
WHEREAS, capitalized terms used herein and not otherwise defined
herein shall be used as defined in the Loan Agreement;
NOW, THEREFORE, in consideration of the above premises, Ten Dollars
($10.00) in hand paid and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each Guarantor hereby guarantees
to the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank: (i) full and prompt payment and performance of all obligations of the
Borrower to the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, under the Guaranteed Agreements (including,
without limitation, any Interest Hedge Agreements between the Borrower, on the
one hand, and the Collateral Agent and the Lenders, or any of them, on the other
hand, and any interest, fees and other charges in respect of the Notes or the
other Loan Documents that would accrue but for the filing of a bankruptcy action
with respect to the Borrower, whether or not such claim is allowed in such
bankruptcy action), as the same may be amended from time to time, or as a result
of making the Loans; (ii) payment of any and all damage which the Collateral
Agent, the Administrative Agent, the Lenders, the Issuing Bank, or any of them,
may suffer by reason of a breach of any obligation, covenant or undertaking with
respect to this Guaranty, the Loan Agreement, the Notes or any other Loan
Document by the Borrower or any other obligor thereunder; and (iii) payment and
performance of all of the obligations of any obligor to the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them,
under this Guaranty, the Loan Agreement and the other Loan Documents, or as a
result of making the Loans; and any extensions, renewals or amendments of any of
the
-2-
foregoing, however created, acquired, arising or evidenced, whether direct or
indirect, absolute or contingent, now or hereafter existing, or due or to become
due, including any interest thereon, plus reasonable attorneys' fees and
expenses if the obligations represented by this Guaranty are collected through
an attorney-at-law, or under advice therefrom (all of the foregoing obligations
(i), (ii), and (iii) being hereinafter collectively referred to as the
"Obligations"). Each Obligation shall rank pari passu with each other
---- -----
Obligation.
Each Guarantor and the Collateral Agent hereby further agree that:
1. Regardless of whether any proposed guarantor or any other Person
or Persons is or are or shall become in any other way responsible to the
Collateral Agent, the Lenders and the Issuing Bank, or any of them, for or in
respect of the Obligations or any part thereof, and regardless of whether or not
any Person or Persons now or hereafter responsible to the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, for the
Obligations or any part thereof, whether under this Guaranty or otherwise, shall
cease to be so liable, each Guarantor hereby declares and agrees that this
Guaranty shall be a several obligation, shall be a continuing guaranty and shall
be operative and binding, and that such Guarantor shall have no right of
subrogation with respect to this Guaranty.
2. Upon this Guaranty's being executed and coming into the hands of
the Collateral Agent, this Guaranty shall be deemed to be finally executed and
delivered by each Guarantor and shall not be subject to or affected by any
promise or condition affecting or limiting such Guarantor's liability, and no
statement, representation, agreement or promise on the part of the Collateral
Agent, the Administrative Agent, the Lenders, the Issuing Bank and the Borrower,
or any of them, or any officer, employee or agent thereof, unless contained
herein forms any part of this Guaranty or has induced the making hereof or shall
be deemed in any way to affect any Guarantor's liability hereunder.
3. No alteration or waiver of this Guaranty or of any of its terms,
provisions or conditions shall be binding upon the parties against whom
enforcement is sought unless made in writing and signed by an authorized officer
of such party.
-3-
4. The Collateral Agent, the Administrative Agent, the Lenders and
the Issuing Bank, or any of them, may from time to time, without exonerating or
releasing any Guarantor in any way under this Guaranty, (i) take such further or
other security or securities for the Obligations or any part thereof as the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, may deem proper, or (ii) release, discharge, abandon or otherwise
deal with or fail to deal with any guarantor of the Obligations or any security
or securities therefor or any part thereof now or hereafter held by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, or (iii) amend, modify, extend, accelerate or waive in any manner
any of the provisions, terms or conditions of the Guaranteed Agreements, all as
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, may consider expedient or appropriate in their sole
discretion. Without limiting the generality of the foregoing, or of Section 5
---------
hereof, it is understood that the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, may, without exonerating or
releasing any Guarantor, give up, modify or abstain from perfecting or taking
advantage of any security for the Obligations and accept or make any
compositions or arrangements and realize upon any security for the Obligations
when, and in such manner, as the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, may deem expedient, all without
notice to any Guarantor.
5. Each Guarantor acknowledges and agrees that no change in the
nature or terms of the Obligations or any of the Guaranteed Agreements, or other
agreements, instruments or contracts evidencing, related to or attendant with
the Obligations (including, without limitation, any novation), shall discharge
all or any part of the liabilities and obligations of such Guarantor pursuant to
this Guaranty; it being the purpose and intent of each Guarantor, the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank that the
covenants, agreements and all liabilities and obligations of such Guarantor
hereunder shall be absolute, unconditional and irrevocable under any and all
circumstances. Without limiting the generality of the foregoing, each Guarantor
agrees that until each and every one of the covenants and agreements of this
Guaranty is fully performed, such Guarantor's undertakings hereunder shall not
be released, in whole or in part, by any action or thing which might, but for
this Section of this Guaranty, be deemed a legal or equitable discharge of a
surety or guarantor, or by reason
-4-
of any waiver, omission of the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, or their failure to proceed
promptly or otherwise, or by reason of any action taken or omitted by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, whether or not such action or failure to act varies or increases
the risk of, or affects the rights or remedies of, such Guarantor, or by reason
of any further dealings between the Borrower, the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, or any
other guarantor or surety, and each Guarantor hereby expressly waives and
surrenders any defense to its liability hereunder and any right of counterclaim
or offset of any nature or description which it may have or which may exist
based upon, and each Guarantor shall be deemed to have consented to, any of the
foregoing acts, omissions, things, agreements or waivers.
6. The Collateral Agent, the Administrative Agent, the Lenders and
the Issuing Bank, or any of them, may, without demand or notice of any kind upon
or to the Guarantors, at any time or from time to time when any amount shall be
due and payable hereunder by any Guarantor, if the Borrower shall not have
timely paid its Obligations, set off and appropriate any property, balances,
credit accounts or moneys of any Guarantor in the possession of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, or under any of their control for any purpose, which property, balances,
credit accounts or moneys shall thereupon be turned over and remitted to the
Collateral Agent, to be held and applied to the Obligations by the Collateral
Agent in accordance with the terms of the Loan Agreement.
7. The creation or existence from time to time of Obligations in
excess of the amount committed to or outstanding on the date of this Guaranty is
hereby authorized, without notice to the Guarantors, and shall in no way impair
or affect this Guaranty or the rights of the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, or any of them, herein.
It is the intention of each Guarantor and the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, that such Guarantor's
obligations hereunder shall be in, but not in excess of, the Maximum Guaranteed
Amount. The "Maximum Guaranteed Amount" shall mean for each Guarantor the
greater of (a) the amount of economic benefit received (directly or indirectly)
by such Guarantor pursuant to the Loan Agreement and the other Loan Documents,
and (b) the maximum amount which would be paid out by such Guarantor without
rendering
-5-
this Guaranty void or voidable under Applicable Laws including, without
limitation, (i) Title 11 of the United States Code, as amended, and (ii)
applicable state law regarding fraudulent conveyances.
8. Upon the bankruptcy or winding up or other distribution of
assets of the Borrower or any Guarantor or of any surety or guarantor for any
Obligations of the Borrower to the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank, or any of them, the rights of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, against any
Guarantor shall not be affected or impaired by the omission of the Collateral
Agent, the Administrative Agent, the Lenders and the Issuing Bank, or any of
them, to prove its or their claim, as appropriate, or to prove its or their full
claim, as appropriate, and the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank may prove such claims as they see fit and may
refrain from proving any claim and, in their respective discretion, they may
value as they see fit, or refrain from valuing, any security held by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, without in any way releasing, reducing or otherwise affecting the
liability of any Guarantor to the Collateral Agent, the Administrative Agent,
the Lenders and the Issuing Bank.
9. Any amount received by the Collateral Agent, the Administrative
Agent, the Lenders and the Issuing Bank, or any of them, from whatsoever source
and applied toward the payment of the Obligations shall be applied in such order
of application as is set forth in the Loan Agreement.
10. Each Guarantor hereby expressly waives, to the fullest extent
permitted by Applicable Law: (a) notice of acceptance of this Guaranty, (b)
notice of the existence or creation of all or any of the Obligations, (c)
presentment, demand, notice of dishonor, protest and all other notices
whatsoever, (d) all diligence in collection or protection of or realization upon
the Obligations or any part thereof, any obligation hereunder or any security
for any of the foregoing, (e) all rights of subrogation, indemnification,
contribution and reimbursement against the Borrower, (f) all rights to enforce
any remedy the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, may have against the Borrower and (g) any benefit
of, or right to participate in, any collateral or security now or hereinafter
held by the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, in respect of the
-6-
Obligations, even upon payment in full of the Obligations, except to the extent
such waiver would be expressly prohibited by Applicable Law. If a claim is ever
made upon the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, for the repayment or recovery of any amounts or
amounts received by any of them in payment of any of the Obligations and such
Person repays all or part of such amount by reason of (i) any judgment, decree
or order of any court or administrative body having jurisdiction over such
Person or any of its property, or (ii) any settlement or compromise of any such
claim effected in good faith by such Person with any such claimant, including
the Borrower, then, in such event, each Guarantor agrees that any such judgment,
decree, order, settlement or compromise shall be binding upon such Guarantor,
notwithstanding any revocation hereof or the cancellation of any promissory note
or other instrument evidencing any of the Obligations, and each Guarantor shall
be and remain obligated to such Person hereunder for the amount so repaid or
recovered to the same extent as if such amount had never originally been
received by such Person.
11. The Collateral Agent, the Administrative Agent, the Lenders and
the Issuing Bank may each, to the extent permitted under the Loan Agreement, and
without notice of any kind, sell, assign or transfer all or any of the
Obligations, and in such event each and every immediate and successive assignee,
transferee, or holder of all or any of the Obligations, shall have the right to
enforce this Guaranty, by suit or otherwise, for the benefit of such assignee,
transferee or holder as fully as if such assignee, transferee or holder were
herein by name specifically given such rights, powers and benefits.
12. No delay by the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, in the exercise of any right or
remedy shall operate as a waiver thereof, and no single or partial exercise by
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank, or any of them, of any right or remedy shall preclude other or further
exercise thereof or the exercise of any other right or remedy. No action by the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, permitted hereunder shall in any way impair or affect this
Guaranty. For the purpose of this Guaranty, the Obligations shall include,
without limitation, all Obligations of the Borrower to the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, notwithstanding any
right or power of any third party, individually or in the name of the
-7-
Borrower or any other Person, to assert any claim or defense as to the
invalidity or unenforceability of any such Obligation, and no such claim or
defense shall impair or affect the obligations of any Guarantor hereunder.
13. This Guaranty shall be binding upon each Guarantor, its
successors and assigns and inure to the benefit of the successors and assigns of
the Collateral Agent, the Administrative Agent, the Lenders and the Issuing
Bank. Each Guarantor shall not assign its rights or obligations under this
Guaranty; nor shall any Guarantor amend this Guaranty, except in accordance with
the provisions of the Loan Agreement.
14. This is a Guaranty of payment and not of collection. In the
event the Collateral Agent makes a demand upon any Guarantor under this Guaranty
pursuant to the terms of the Loan Agreement, such Guarantor shall be held and
bound to the Collateral Agent, the Lenders and the Issuing Bank directly as
debtor in respect of the payment of the amounts hereby guaranteed. All costs
and expenses, including, without limitation, reasonable attorneys' fees and
expenses, incurred by the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, in obtaining performance of or
collecting payments due under this Guaranty shall be deemed part of the
Obligations guaranteed hereby. Any notice or demand which the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, or any of them, may
wish to give shall be served upon the respective Guarantor in the fashion
prescribed for notices in Section 11.1 of the Loan Agreement to such Guarantor's
------------
last known places of address, and the notice so sent shall be deemed to be
served as set forth in Section 11.1 of the Loan Agreement.
------------
15. Each Guarantor expressly represents and acknowledges that any
financial accommodations by the Collateral Agent, the Administrative Agent, the
Lenders and the Issuing Bank, or any of them, to the Borrower, including,
without limitation, the extension of the Loans, are and shall be of direct
interest, benefit and advantage to such Guarantor.
16. Each Guarantor covenants and agrees that so long as any amount
is owing on account of any of the Obligations or otherwise pursuant to this
Guaranty, such Guarantor shall permit representatives of the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank, during normal
business hours after reasonable notice, to visit and inspect properties of such
Guarantor, inspect
-8-
such Guarantor's books and records and discuss with the principal officers of
such Guarantor its businesses, assets, liabilities, financial positions, results
of operations and business prospects.
17. This Guaranty shall be construed in accordance with and governed
by the internal laws of the State of New York applicable to contracts made and
to be performed in the State of New York.
18. If any action or proceeding shall be brought by the Collateral
Agent in order to enforce any right or remedy under this Guaranty, each
Guarantor hereby consents to the jurisdiction of any state or federal court of
competent jurisdiction sitting within the area comprising the Southern District
of New York on the date of this Guaranty. Each Guarantor hereby agrees that
service of the summons and complaint and all other process which may be served
in any such suit, action or proceeding may be effected by mailing by registered
mail a copy of such process to any offices of CT Corporation located in New
York, New York and that personal service of process shall not be required.
Nothing contained herein shall be construed to prohibit service of process by
any other method permitted by law, or the bringing of any suit, action or
proceeding in any other jurisdiction. Each Guarantor agrees that final judgment
in such suit, action or proceeding shall be conclusive and may be enforced in
any other jurisdiction by suit on the judgment or in any other manner provided
by Law.
19. Pursuant to Section 5.12 of the Loan Agreement, any new
------------
Subsidiary (whether by Acquisition, creation or designation) of the Borrower is
required to enter into this Agreement by executing and delivering to the
Administrative Agent an instrument in the form of Annex 1 attached hereto. Upon
-------
the execution and delivery of Annex 1 by such Subsidiary, such Subsidiary shall
-------
become a Guarantor hereunder with the same force and effect as if originally
named as a Guarantor herein. The execution and delivery of any instrument
adding an additional Guarantor as a party to this Agreement shall not require
the consent of any other Guarantor hereunder. The rights and obligations of
each Guarantor hereunder shall remain in full force and effect notwithstanding
the addition of any Guarantor hereunder.
[Remainder of this page intentionally left blank.]
-9-
IN WITNESS WHEREOF, each Guarantor has caused this Guaranty to be
executed as of the date first above written.
GUARANTORS: By: *
----------------------
In his capacity as
Assistant Secretary for
each of the Guarantors
Address:
000 X. Xxx Xxxxxxx Xxxx.
Xxxxx 0000
Xxxxxx, Xxxxx 00000
* Schedule 1 - List of Guarantors
Schedule 1
----------
Guarantors
-11-
Annex 1 to Subsidiary
Guaranty - Supplement
No. ____
Supplement No. ___ (this "Supplement") dated as of _______ __,
____ to the Second Amended and Restated Subsidiary Guaranty dated as
of April __, 1997 (the "Subsidiary Guaranty") by and among each of the
parties listed on the signature pages thereto and those additional
entities that thereafter become parties thereto (each a "Guarantor")
and Toronto Dominion (Texas), Inc., as collateral agent as described
below (the "Collateral Agent").
WITNESSETH:
WHEREAS, the transactions recited in the `WHEREAS' clauses of the
Subsidiary Guaranty have taken place; and
WHEREAS, capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Subsidiary
Guaranty; and
WHEREAS, the Guarantors have entered into the Subsidiary Guaranty in
order to induce the Lenders to make the Loans; and
WHEREAS, pursuant to Section 5.12 of the Loan Agreement, new
------------
Subsidiaries of the Borrower (whether by Acquisition, creation, or designation)
must execute and deliver certain Loan Documents and Security Documents,
including the Subsidiary Guaranty, and the execution of the Subsidiary Guaranty
by the undersigned new Guarantor (the "New Guarantor") may be accomplished by
the execution of this Supplement in favor of the Collateral Agent;
NOW, THEREFORE, for and in consideration of the foregoing, Ten and
No/100 Dollars ($10.00) in hand paid, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the New Guarantor
hereby agrees as follows:
SECTION 1. In accordance with Section 19 of the Subsidiary Guaranty,
----------
the New Guarantor, by its signature below, becomes a `Guarantor' under the
Subsidiary Guaranty with the same force and effect as if originally named
-12-
therein as a `Guarantor' and the New Guarantor hereby (a) agrees to all of the
terms and provisions of the Subsidiary Guaranty applicable to it as a
`Guarantor' thereunder and (b) represents and warrants that the representations
and warranties made by it as a `Guarantor' thereunder are true and correct on
and as of the date hereof. In furtherance of the foregoing, the New Guarantor,
as security for the payment and performance in full of the Obligations, does
hereby guarantee, subject to the limitations set forth in Section 7 of the
---------
Subsidiary Guaranty, to the Collateral Agent, for the benefit of itself, the
Administrative Agent, the Lenders and the Issuing Bank, the full and prompt
payment of the Obligations pursuant to the Loan Agreement, the Notes and every
other Loan Document, including any interest thereon, plus reasonable attorneys'
fees and expenses if the Obligations represented by the Subsidiary Guaranty are
collected by law, through an attorney-at-law, or under advice therefrom. Each
reference to a `Guarantor' in the Subsidiary Guaranty shall be deemed to include
the New Guarantor. The Subsidiary Guaranty is incorporated herein by reference.
SECTION 2. The New Guarantor represents and warrants to the
Collateral Agent that this Supplement has been duly executed and delivered by
the New Guarantor and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as enforceability
thereof may be limited by bankruptcy, insolvency, reorganization, fraudulent
transfer, moratorium or other similar laws affecting creditors' rights generally
and general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
SECTION 3. This Supplement may be executed in multiple counterparts,
each of which shall be deemed to be an original, but all such separate
counterparts shall together constitute but one and the same instrument.
SECTION 4. Except as expressly supplemented hereby, the Subsidiary
Guaranty shall remain in full force and effect.
SECTION 5. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
[Remainder of this page intentionally left blank.]
-13-
IN WITNESS WHEREOF, the New Guarantor has duly executed this
Supplement to the Subsidiary Guaranty as of the day and year first above
written.
NEW GUARANTOR: ,
-----------------------------
a
---------------------------
By:
------------------------
Name: Title:
----------------------- ---------------------
Address:
--------------------
--------------------
--------------------
-14-
EXHIBIT J
---------
FORM OF SECOND AMENDED AND RESTATED
SUBSIDIARY PLEDGE AGREEMENT
THIS SECOND AMENDED AND RESTATED SUBSIDIARY PLEDGE AGREEMENT (the
"Agreement"), entered into as of this ____ day of April, 1997, by the
signatories hereto (collectively, the "Pledgors") in favor of Toronto Dominion
(Texas), Inc., a Delaware corporation, as collateral agent for itself and on
behalf of itself, in its capacity as the Administrative Agent, the Lenders and
the Issuing Bank (as defined in the Loan Agreement described below) (the
"Collateral Agent"),
W I T N E S S E T H:
-------------------
WHEREAS, Evergreen Media Corporation of Los Angeles, a Delaware
corporation (the "Borrower"), the various financial institutions whose names
appear as lenders on the signature pages to the Loan Agreement (as defined
below) (together with any other financial institution which subsequently becomes
a `Lender' under the Loan Agreement, as such term is defined herein, the
"Lenders") and Toronto Dominion (Texas), Inc., as administrative agent for the
Lenders (the "Administrative Agent"), are parties to a certain Second Amended
and Restated Loan Agreement of even date herewith (as amended, modified or
supplemented from time to time, the "Loan Agreement") pursuant to which the
Lenders have agreed to make Loans to the Borrower in an aggregate principal
amount not to exceed the Commitments; and
WHEREAS, Toronto Dominion (Texas), Inc. has agreed to act as
collateral agent for itself, and on behalf of itself, in its capacity as the
Administrative Agent, the Lenders and the Issuing Bank, in connection with the
transactions contemplated by the Loan Agreement; and
WHEREAS, to secure the payment and performance of, among other things,
all obligations of the Borrower under the Loan Agreement, the Notes and the
other Loan Documents, the Pledgors (each a wholly-owned Subsidiary of the
Borrower), have agreed to pledge the shares of Capital Stock (the "Stock") owned
by the Pledgors in the companies described on Schedule 1 attached hereto (the
----------
"Subsidiaries"), which is all of the Capital Stock owned by the Pledgors, to the
Collateral Agent to secure the Obligations (as defined below);
NOW, THEREFORE, the parties hereto agree that capitalized terms used
herein shall have the meanings ascribed to
them in the Loan Agreement to the extent not otherwise defined or limited
herein, and further agree as follows:
1. Warranty. Each Pledgor hereby represents and warrants to the
--------
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank
that, except for the security interest created hereby, such Pledgor owns the
Stock, which Stock constitutes such percentage of the issued and outstanding
Capital Stock of each Subsidiary as is set forth next to such Subsidiary's name
on Schedule 1, free and clear of all Liens, that the Stock is duly issued, fully
----------
paid and non-assessable and that such Pledgor has the unencumbered right to
pledge the Stock.
2. Security Interest. Each Pledgor hereby unconditionally grants
-----------------
and assigns to the Collateral Agent, for itself and on behalf of the
Administrative Agent, the Lenders, the Issuing Bank and their respective
successors and assigns, a continuing security interest in and security title to
the Stock. Each Pledgor has delivered to and deposited with the Collateral
Agent herewith all of its right, title and interest in and to its Stock,
together with certificates representing such Stock and stock powers endorsed in
blank, as security for payment and performance of all obligations of such
Pledgor to the Collateral Agent, the Administrative Agent, the Lenders and the
Issuing Bank, or any of them, under that certain Subsidiary Guaranty of even
date herewith given by each Pledgor for the benefit of the Collateral Agent, the
Administrative Agent, the Lenders and the Issuing Bank, and any extensions,
renewals or amendments of any of the foregoing, however created, acquired,
arising or evidenced, whether direct or indirect, absolute or contingent, now or
hereafter existing, or due or to become due (all of the foregoing obligations
being hereinafter collectively referred to as the "Obligations"); it being the
intention of the parties hereto that beneficial ownership of the Stock,
including, without limitation, all voting, consensual and dividend rights, shall
remain in the Pledgors until the occurrence of a Default (as defined below)
under the terms hereof and until the Collateral Agent shall notify each Pledgor
of the Collateral Agent's exercise of voting and dividend rights to the Stock
pursuant to Section 9 of this Agreement.
---------
3. Additional Shares. In the event that, during the term of this
-----------------
Agreement:
(a) any stock dividend, stock split, reclassification, readjustment
or other change is declared or made in the capital structure of any
Subsidiary, all new, substituted, and additional shares, or other
securities issued by reason of any such change and received by any
Pledgor or to which such Pledgor
-2-
shall be entitled shall be promptly delivered to the Collateral Agent,
together with stock powers endorsed in blank by such Pledgor, and shall
thereupon constitute Stock to be held by the Collateral Agent under the
terms of this Agreement; and
(b) any subscriptions, warrants or any other rights or options shall
be issued in connection with the Stock, all new Capital Stock or other
securities acquired through such subscriptions, warrants, rights or
options by such Pledgor shall be promptly delivered to the Collateral
Agent and shall thereupon constitute Stock to be held by the Collateral
Agent under the terms of this Agreement.
4. Default. In the event of the occurrence of an Event of Default
-------
under the terms of the Loan Agreement, and so long as any such Event of Default
is continuing (any of such occurrences being hereinafter referred to as a
"Default"), subject to Section 13 hereof, the Collateral Agent may sell or
----------
otherwise dispose of the Stock at a public or private sale or make other
commercially reasonable disposition of the Stock or any portion thereof after
ten (10) days' notice to the Pledgors, and the Collateral Agent, the
Administrative Agent, the Issuing Bank or any Lender may purchase the Stock or
any portion thereof at any public sale. The proceeds of the public or private
sale or other disposition shall be applied to the costs of the Collateral Agent,
the Administrative Agent, the Lenders and the Issuing Bank incurred in
connection with the sale, expressly including, without limitation, any costs
under Section 7(a) hereof, and thereafter in such order as is provided in the
------------
Loan Agreement. In the event the proceeds of the sale or other disposition of
the Stock shall be insufficient to satisfy the Obligations, the Pledgors shall
remain liable for any such deficiency.
5. Additional Rights of Secured Party. In addition to its rights
----------------------------------
and privileges under this Agreement, the Collateral Agent, the Administrative
Agent, the Issuing Bank and each of the Lenders shall have all the rights,
powers and privileges of a secured party under the Uniform Commercial Code as in
effect in any applicable jurisdiction.
6. Return of Stock to the Pledgors; Etc. Upon payment in full of
------------------------------------
all principal and interest on the Notes, full performance by the Borrower of all
covenants, undertakings and obligations under the Loan Agreement, the Notes and
the other Loan Documents, and satisfaction in full of all other Obligations,
other than the Obligations which survive the termination of the Loan Agreement
as provided in Section 11.16 of
-------------
-3-
the Loan Agreement, the then remaining Stock and all rights received by the
Collateral Agent as a result of its possessory interest in the Stock shall be
returned to the Pledgors.
7. Disposition of Stock by Collateral Agent. The Stock is not
----------------------------------------
registered or qualified under the various Federal or state securities laws of
the United States and disposition thereof after default may be restricted to one
or more private (instead of public) sales in view of the lack of such
registration. Each Pledgor understands that in connection with such disposition,
the Collateral Agent may approach only a restricted number of potential
purchasers and further understands that a sale under such circumstances may
yield a lower price for the Stock than if the Stock was registered and qualified
pursuant to Federal and state securities legislation and sold on the open
market. Each Pledgor, therefore, agrees that:
(a) if the Collateral Agent shall, pursuant to the terms of this
Agreement, sell or cause the Stock or any portion thereof to be sold at a
private sale, the Collateral Agent shall have the right to rely upon the
advice and opinion of any national brokerage or investment firm having
recognized expertise and experience in connection with shares of radio
broadcast and other communication companies (but shall not be obligated
to seek such advice and the failure to do so shall not be considered in
determining the commercial reasonableness of such action) as to the best
manner in which to expose the Stock for sale and as to the best price
reasonably obtainable at the private sale thereof; and
(b) that such reliance shall be presumptive evidence that the
Collateral Agent has handled such disposition in a commercially
reasonable manner.
8. Pledgors' Obligations Absolute. The obligations of the Pledgors
------------------------------
under this Agreement shall be direct and immediate and not conditional or
contingent upon the pursuit of any remedies against the Pledgors or any of them
or any other Person, nor against other security or liens available to the
Collateral Agent, the Administrative Agent, the Lenders and the Issuing Bank, or
any of them, or any of their respective successors, assigns or agents. Each
Pledgor hereby waives any right to require that an action be brought against any
other Person or to require that resort be had to any security or to any balance
of any deposit account or credit on the books of the Collateral Agent, the
Administrative Agent, the Issuing Bank or any of the Lenders in favor of any
other Person prior to the exercise of remedies hereunder, or to require action
hereunder
-4-
prior to resort by the Collateral Agent, the Administrative Agent, the Issuing
Bank or any of the Lenders to any other security or collateral for the Notes and
the other Obligations.
9. Voting Rights.
-------------
(a) For so long as the Notes or any other Obligations remain unpaid,
after and during the continuation of a Default, but subject to the
provisions of Section 13 hereof, (i) the Collateral Agent may, upon ten
----------
(10) days' prior written notice to the Pledgors of its intention to do
so, exercise all voting rights and all other ownership or consensual
rights of the Stock, but under no circumstances is the Collateral Agent
obligated by the terms of this Agreement to exercise such rights, and
(ii) each Pledgor hereby appoints the Collateral Agent, which appointment
shall be effective on the 10th day following the giving of notice by the
Collateral Agent as provided in the foregoing Section 9(a)(i), such
---------------
Pledgor's true and lawful attorney-in-fact and IRREVOCABLE PROXY to vote
the Stock in any manner the Collateral Agent deems advisable for or
against all matters submitted or which may be submitted to a vote of
shareholders. The power-of-attorney granted hereby is coupled with an
interest and shall be irrevocable.
(b) For so long as any Pledgor shall have the right to vote the
Stock, such Pledgor covenants and agrees that it will not, without the
prior written consent of the Collateral Agent, vote or take any
consensual action with respect to the Stock which would constitute a
Default.
10. Notices. All notices and other communications required or
-------
permitted hereunder shall be in writing, and shall be given in the manner and at
the addresses set forth in Section 11.1 of the Loan Agreement with respect to
------------
the Collateral Agent, the Administrative Agent and the Lenders, in the manner
set forth in Section 11.1 of the Loan Agreement with respect to the Pledgors at
------------
the address set forth on the signature page hereof.
11. Binding Agreement. The provisions of this Agreement shall be
-----------------
construed and interpreted, and all rights and obligations of the parties hereto
determined, in accordance with the internal laws of the State of New York
applicable to contracts made and to be performed in the State of New York. This
Agreement, together with all documents referred to herein, constitutes the
entire Agreement between the parties with respect to the matters addressed
herein and may not be modified except by
-5-
a writing executed by the Collateral Agent and the Pledgors and delivered by the
Collateral Agent to the Pledgors.
12. Severability. If any Section or part thereof shall for any
------------
reason be held or adjudged to be invalid, illegal or unenforceable by any court
of competent jurisdiction, such Section or part thereof so adjudicated invalid,
illegal or unenforceable shall be deemed separate, distinct and independent, and
the remainder of this Agreement shall remain in full force and effect and shall
not be affected by such holding or adjudication.
13. FCC Compliance. Notwithstanding anything contained herein
--------------
which may be construed to the contrary, no action shall be taken by the
Collateral Agent which may require the consent or approval of the FCC unless and
until all requirements of the Communications Act requiring the consent to or
approval of such action by the FCC have been satisfied. Each Pledgor covenants
that, upon request of the Collateral Agent, it shall cause to be filed such
applications and take such other action as may be requested by the Collateral
Agent to obtain consent or approval of the FCC to any action contemplated by
this Agreement and to give effect to the security interest of the Collateral
Agent hereunder, including, without limitation, the execution of an application
for consent by the FCC to an assignment or transfer involving a change in
ownership or control pursuant to the provisions of the Communications Act. Each
Pledgor hereby irrevocably appoints the Collateral Agent its true and lawful
attorney-in-fact, effective upon the occurrence and during the continuation of
an Event of Default, in its name and stead, to execute and file all necessary
applications with the FCC. The power of attorney granted hereby is coupled with
an interest and shall be irrevocable.
14. Counterparts. This Agreement may be executed in multiple
-------------
counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument.
15. New Subsidiaries. Pursuant to Section 5.12 of the Loan
---------------- ------------
Agreement, any new Subsidiary of the Borrower (whether created by Acquisition,
creation or designation) is required to enter into this Agreement by executing
and delivering to the Administrative Agent an instrument in the form of Annex 1
-------
attached hereto. Upon the execution and delivery of Annex 1 by such new
-------
Subsidiary, such Subsidiary shall become a Pledgor hereunder with the same force
and effect as if originally named as a Pledgor herein. The execution and
delivery of any instrument adding an additional Pledgor as a party to this
Agreement shall not require the consent of any other Pledgor
-6-
hereunder. The rights and obligations of each Pledgor hereunder shall remain in
full force and effect notwithstanding the addition of any Pledgor hereunder.
16. Pledge of Additional Securities. Pursuant to the Loan Agreement,
-------------------------------
each Pledgor agrees to assign and grant security title to, and a security
interest in, any debt or equity securities acquired by such Pledgor after the
date hereof (including, but not limited to, those securities acquired in
connection with a Permitted Asset Sale or as an Investment, in each case to the
extent required by Section 7.6 of the Loan Agreement). Each Pledgor agrees to
-----------
execute, deliver and record any amendments hereto, documents, instruments, stock
powers and UCC-1 Financing Statements, deemed by the Collateral Agent to be
necessary or appropriate, to create or perfect the security interest described
in the foregoing sentence.
[Remainder of this page intentionally left blank]
-7-
IN WITNESS WHEREOF, the undersigned parties hereto have executed this
Agreement by and through their duly authorized officers, as of the day and year
first above written.
PLEDGORS: By: ____________________________ *
In his capacity as Assistant
Secretary of each of the
Pledgors
Address: 000 X. Xxx Xxxxxxx Xxxxxxxxx
Xxxxx 0000
Xxxxxx, Xxxxx 00000
COLLATERAL AGENT: TORONTO DOMINION (TEXAS), INC.
By:_________________________________
Title:______________________________
* Schedule 1 - List of Pledgors and Subsidiaries
-8-
Schedule 1
----------
List of Pledgors and Subsidiaries
Annex 1 to Subsidiary
Pledge Agreement -
Supplement No. ____
Supplement No. ___ (this "Supplement") dated as of _______ __,
____ to the Second Amended and Restated Subsidiary Pledge Agreement
dated as of April __, 1997 (the "Subsidiary Pledge Agreement") by
and among each of the parties listed on the signature pages thereto
and those additional entities that thereafter become parties thereto
(collectively, the "Pledgors") and Toronto Dominion (Texas), Inc.,
as collateral agent as described below (the "Collateral Agent").
WITNESSETH:
WHEREAS, the transactions recited in the "WHEREAS" clauses of the
Subsidiary Pledge Agreement have taken place; and
WHEREAS, capitalized terms used herein and not otherwise defined
herein shall have the meanings assigned to such terms in the Subsidiary Pledge
Agreement; and
WHEREAS, the Pledgors have entered into the Subsidiary Pledge
Agreement in order to induce the Lenders to make the Loans; and
WHEREAS, pursuant to the provisions of Section 5.12 of the Loan
------------
Agreement, new Subsidiaries of the Borrower (whether created by Acquisition,
creation, or designation) must execute and deliver certain Loan Documents and
Security Documents, including the Subsidiary Pledge Agreement, if applicable,
and the execution of the Subsidiary Pledge Agreement by the undersigned new
Subsidiary (the "New Pledgor") may be accomplished by the execution and delivery
of this Supplement in favor of the Collateral Agent;
NOW, THEREFORE, for and in consideration of the foregoing and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
SECTION 1. In accordance with Section 15 of the Subsidiary Pledge
----------
Agreement, the New Pledgor, by its signature below, becomes a `Pledgor' under
the Subsidiary Pledge Agreement with the same force and effect as if originally
named therein as a `Pledgor' and the New Pledgor hereby (a) agrees to all of the
terms and provisions of the Subsidiary Pledge Agreement applicable to it as a
`Pledgor' thereunder and (b) represents and warrants that the representations
and warranties made by it as a `Pledgor' thereunder are true and correct on and
as of the date hereof. In furtherance of the foregoing, the New Pledgor, as
security for the payment and performance in full of the Obligations (as defined
in the Subsidiary Pledge Agreement), does hereby grant and assign to the
Collateral Agent, for the benefit of itself, the Administrative Agent, the
Lenders and the Issuing Bank, a continuing security interest in and to the
shares of Capital Stock of any Subsidiary of the New Pledgor listed on Schedule
--------
1 attached hereto and, to the extent required to be pledged under the Loan
-
Agreement, any debt or equity securities acquired by such New Pledgor in the
future and the certificates representing all such shares (together with undated
stock powers endorsed in blank). Schedule 1 attached hereto supplements Exhibit
---------- -------
A to the Subsidiary Pledge Agreement and shall be deemed a part thereof for all
-
purposes of the Subsidiary Pledge Agreement. Each reference to a "Pledgor" in
the Subsidiary Pledge Agreement shall be deemed to include the New Pledgor. The
Subsidiary Pledge Agreement is incorporated herein by reference.
SECTION 2. The New Pledgor represents and warrants to the Collateral
Agent that this Supplement has been duly executed and delivered by the New
Pledgor and constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, except as enforceability thereof may be
limited by bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium or other similar laws affecting creditors' rights generally and
general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
SECTION 3. This Supplement may be executed in multiple counterparts,
each of which shall be deemed to be an original, but all such separate
counterparts shall together constitute but one and the same instrument.
SECTION 4. Except as expressly supplemented hereby, the Subsidiary
Pledge Agreement shall remain in full force and effect.
SECTION 5. This Supplement shall be construed and interpreted in
accordance with the internal laws of the State of New York applicable to
agreements to be made and performed wholly within the State of New York.
[Remainder of this page intentionally left blank.]
-2-
IN WITNESS WHEREOF, the New Pledgor and the Collateral Agent have duly
executed this Supplement to the Subsidiary Pledge Agreement as of the day and
year first above written.
NEW PLEDGOR: ,
------------------------------
a
---------------
By:
-----------------------------
Address: Name:
-------------------- ------------------------
Title:
-------------------- -----------------------
--------------------
COLLATERAL AGENT: TORONTO-DOMINION (TEXAS), INC.
By:
-----------------------------
Title:
-----------------------
-3-
SCHEDULE 1
----------
Name of Pledged Number of Class of Percentage of Stock
Subsidiary Shares Stock Class Owned Certificate No(s).
--------------- ---------- -------- ------------- ------------------
