FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER
Exhibit
10.16
FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER
THIS FIRST AMENDMENT TO THE AGREEMENT AND PLAN OF MERGER (this “Amendment”), is dated
as of May 5, 2006, among COCONUT PALM ACQUISITION CORP., a Delaware corporation (“Coconut
Palm”), EQUITY BROADCASTING CORPORATION, an Arkansas corporation (“EBC”) and certain
shareholders of EBC who are signatories to this Amendment (collectively, the “Major EBC
Shareholders”). All terms not defined herein shall have the meaning ascribed to them in the
Agreement and Plan of Merger which is referenced below.
RECITALS
WHERERAS, Coconut Palm, EBC and the Major EBC Shareholders entered into that certain Agreement
and Plan of Merger dated as of April 7, 2006 (the “Merger Agreement”), pursuant to which
EBC will merge with and into Coconut Palm with Coconut Palm being the surviving corporation; and
WHEREAS, the parties desire to extend the Due Diligence Termination Date and clarify certain
other provisions of the Merger Agreement as provided below;
NOW, THEREFORE, in consideration of the mutual premises set forth herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:
TERMS OF AMENDMENT
1. Amendment of Section 2.01(a)(iii); Conversion of Securities. Section 2.01(a)(iii)
of the Merger Agreement is amended by replacing the phrase “. . . (and each Affiliate thereof which
are signatories to this Agreement, (collectively, “Sycamore”)), . . .” with “. . .
(and each Affiliate thereof, or other party whose signature is subscribed by Xxxx X. Xxxxxxx, which
are signatories to this Agreement (collectively, “Sycamore”)), . . .”
2. Amendment of Section 2.01(d); Percentage Ownership of Coconut Palm Common Stock.
The parties hereby agree that the reference to “approximately 67.52%” in Section 2.01(d) of the
Merger Agreement is amended and restated to read “approximately 67.03%”.
3. Amendment of Section 3.03(b); Capitalization; Shareholders; Books and Records.
Section 3.03(b) of the Merger Agreement is amended by replacing “13,131,999” (in each instance)
with “13,101,999”.
4. Amendment of Section 3.03(d); Capitalization; Shareholders; Books and Records:
Section 3.03(d) of the Merger Agreement is amended and restated in its entirety to read as follows:
”(d) As of the date of this Agreement and as of the Closing Date, the aggregate
Indebtedness of EBC and the Subsidiaries shall not exceed $62,000,000.00, subject to
increase in accordance with the provisions of Section 7.02(s) (“EBC
Maximum Indebtedness”).”
5. Amendment of Section 6.12(h); Indemnification — EBC Shareholder Representative.
Section 6.12(h) of the Merger Agreement is amended by replacing the name “Xxxx Xxxxxxxx”
with “Xxxx X. Xxxxxxx”.
6. Amendment of Section 6.16; Due Diligence Review. The parties hereby agree that the
reference to “four (4) weeks” in the first clause of the first sentence of Section 6.16 of the
Merger Agreement is amended and restated to read “five (5) weeks”. Provided that for purposes of
Section 7.02(n) hereof, the foregoing change from four (4) weeks to five (5) weeks shall not apply.
7. Amendment of Section 7.02; Conditions to the Obligations of Coconut Palm — EBC
Indebtedness:
(s) EBC Indebtedness. The total EBC Closing Date Indebtedness of EBC as
reflected on a balance sheet of EBC dated as of the date prior to the Closing,
certified by the chief financial officer of EBC (the “Closing Balance
Sheet”), shall be no more than the EBC Maximum Indebtedness; provided however,
that in the event (i) EBC shall not have sold or transferred one or both (or any
portion) of its TV stations WBMM and KPOU and one or both (or any portion) of such
TV stations remain as assets of EBC which are freely transferable (subject only to
customary approvals including from the FCC and presently existing third party
lenders), or (ii) EBC has entered into a binding written agreement with a third
party providing for the sale of one or both (or any portion) of its TV stations WBMM
and KPOU (subject only to customary approvals including from the FCC and presently
existing third party lenders), and the collective net sale price of such TV stations
as provided in the related sales agreement(s) is not less than (a) $15,683,400 with
respect to KPOU (excluding the assets of EBC Boise, Inc. and EBC Pocatello, Inc.),
(b) $387,000 with respect to the assets of EBC Boise, Inc., (c) $387,000 with
respect to the assets of EBC Pocatello, Inc., and (d) $1,542,600 with respect to
WBMM, then the EBC Maximum Indebtedness shall be increased by the following amounts:
(1) $10,455,600, in the event that the conditions of either of clause (i) or (ii)
above are satisfied with respect to KPOU (excluding the assets of EBC Boise, Inc.
and EBC Pocatello, Inc.); (2) $258,000, in the event that the conditions of either
of clause (i) or (ii) above are satisfied with respect to the assets of EBC Boise,
Inc.; (3) $258,000, in the event that the conditions of either of clause (i) or (ii)
above are satisfied with respect to the assets of EBC Pocatello, Inc.; and (4)
$1,028,000, in the event that the conditions of either of clause (i) or (ii) above
are satisfied with respect to WBMM. The Closing Balance Sheet shall have been
prepared in accordance with GAAP, consistently applied, throughout the periods
covered thereby and present fairly in all material respects the financial condition
of EBC and its assets and liabilities as of such date; provided, that, the Closing
Balance Sheet shall be subject to normal year-end audit adjustments (which in the
aggregate are not material) and omit footnotes and other presentation items which
are required by GAAP. The Closing Balance Sheet reflect all adjustments necessary
for a fair presentation of the financial information contained therein, subject to
the exceptions from GAAP noted herein.
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This Amendment shall form and be a part of the Merger Agreement. This Amendment shall modify
the Merger Agreement solely as to the terms which are expressly stated herein, and all other terms
and conditions of the Merger Agreement shall remain in full force and effect. This Amendment may
be executed in one or more counterparts, each of which will be deemed an original and all of which
together will constitute one and the same instrument.
[Signatures follow]
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IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on the date first
written above.
COCONUT PALM ACQUISITION CORP. |
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By /s/ Xxxxx X. Xxxxxxx | |||||
Xxxxx X. Xxxxxxx, Vice President | |||||
EQUITY BROADCASTING CORPORATION |
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By /s/ Xxxxx X. Xxxxxx | |||||
Xxxxx X. Xxxxxx, President | |||||
MAJOR EBC SHAREHOLDERS: ARKANSAS MEDIA, LLC |
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By /s/ Xxxxx X. Xxxxxx | |||||
Xxxxx X. Xxxxxx, Manager | |||||
SYCAMORE VENTURE CAPITAL, L.P. |
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By: | Sycamore Business Partners, L.P., its General Partner | ||||
By: Sycamore Management Corporation, its General Partner | |||||
By: | /s/ Xxxx X. Xxxxxxx | ||||
Xxxx X. Xxxxxxx, President | |||||
PIERREPOINT FAMILY INVESTMENT PARTNERSHIP I, L.P. |
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By: | /s/ Xxxx X. Xxxxxxxxxxx | ||||
Xxxx X. Xxxxxxxxxxx, General Partner | |||||
By: | Xxxx X. Xxxxxxx pursuant to Power of | ||||
Attorney, dated May 21, 2004 | |||||
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/s/ Kilin To | ||||
Kilin To | ||||
By: | Xxxx X. Xxxxxxx pursuant to Power of Attorney, dated May 21, 2004 | |||
/s/ Xxxxxxx Xxxxx | ||||
Xxxxxxx Xxxxx | ||||
By: | Xxxx X. Xxxxxxx pursuant to Power of Attorney, dated May 21, 2004 | |||
XXXXXXX CHILDREN IRREVOCABLE TRUST U/T/D April 13, 1990 |
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By: | /s/ Xxxx X. Xxxxxxx | |||
Xxxx X. Xxxxxxx, Trustee | ||||
/s/ Xxxx X. Xxxxxxx | ||||
Xxxx X. Xxxxxxx | ||||
/s/ Xxxxx Xxxxx | ||||
Xxxxx Xxxxx | ||||
UNIVISION COMMUNICATIONS, INC. |
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By /s/ Xxxxxx X. Xxxxxx | ||||
Xxxxxx X. Xxxxxx, SEVP & CFO | ||||
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