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CREDIT AGREEMENT
dated as of
May 28, 1998
between
XXXXXXXX BROADCAST GROUP, INC.
The SUBSIDIARY GUARANTORS Party Hereto
The LENDERS Party Hereto
THE CHASE MANHATTAN BANK,
as Administrative Agent
NATIONSBANK OF TEXAS, N.A.,
as Documentation Agent
and
CHASE SECURITIES INC.,
as Arranger
$1,750,000,000
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TABLE OF CONTENTS
Page
ARTICLE I DEFINITIONS..........................................................1
SECTION 1.01. Defined Terms..............................................1
SECTION 1.02. Classification of Loans and Borrowings....................31
SECTION 1.03. Call Letters for Stations.................................31
SECTION 1.04. Terms Generally...........................................31
SECTION 1.05. Accounting Terms; GAAP....................................31
ARTICLE II THE CREDITS........................................................33
SECTION 2.01. The Credits...............................................33
SECTION 2.02. Loans and Borrowings......................................34
SECTION 2.03. Requests for Borrowings...................................34
SECTION 2.04. Letters of Credit.........................................35
SECTION 2.05. Funding of Borrowings.....................................40
SECTION 2.07. Termination and Reduction of the Commitments..............42
SECTION 2.08. Repayment of Loans; Evidence of Debt......................44
SECTION 2.09. Prepayment of Loans.......................................48
SECTION 2.10. Fees......................................................50
SECTION 2.11. Interest..................................................51
SECTION 2.12. Alternate Rate of Interest................................52
SECTION 2.13. Increased Costs...........................................52
SECTION 2.14. Break Funding Payments....................................54
SECTION 2.15. Taxes.....................................................54
ARTICLE III GUARANTEE.........................................................58
SECTION 3.01. The Guarantee.............................................58
SECTION 3.02. Obligations Unconditional.................................58
SECTION 3.03. Reinstatement.............................................59
SECTION 3.04. Subrogation...............................................60
SECTION 3.05. Remedies..................................................60
SECTION 3.06. Instrument for the Payment of Money.......................60
SECTION 3.07. Continuing Guarantee......................................60
SECTION 3.08. Rights of Contribution....................................60
SECTION 3.09. General Limitation on Guarantee Obligations...............61
ARTICLE IV REPRESENTATIONS AND WARRANTIES.....................................61
SECTION 4.01. Organization; Powers......................................61
SECTION 4.02. Authorization; Enforceability.............................62
SECTION 4.03. Governmental Approvals; No Conflicts......................62
SECTION 4.04. Financial Condition; Material Adverse Change;
Year 2000 Issues.........................................62
SECTION 4.05. Properties................................................63
SECTION 4.06. Litigation and Environmental Matters......................63
SECTION 4.07. Compliance with Laws and Agreements.......................64
SECTION 4.08. Investment and Holding Company Status.....................64
SECTION 4.09. Taxes.....................................................64
SECTION 4.10. ERISA.....................................................64
SECTION 4.12. Use of Credit.............................................64
SECTION 4.13. Indebtedness and Liens....................................65
SECTION 4.14. Capitalization............................................65
SECTION 4.15. Subsidiaries and Investments..............................65
SECTION 4.16. Broadcast Licenses........................................66
SECTION 4.17. Ancillary Documents.......................................67
SECTION 4.18. Program Services Agreements...............................67
SECTION 4.19. Options...................................................67
SECTION 4.20. Asset Use and Operating Agreements........................67
SECTION 4.21. Solvency..................................................67
ARTICLE V CONDITIONS..........................................................68
SECTION 5.01. Effective Date............................................68
SECTION 5.02. Each Credit Event.........................................72
SECTION 5.03. Each Incremental Term Loan................................72
ARTICLE VI AFFIRMATIVE COVENANTS..............................................73
SECTION 6.01. Financial Statements and Other Information................73
SECTION 6.02. Notices of Material Events................................75
SECTION 6.03. Existence; Conduct of Business............................76
SECTION 6.04. Payment of Obligations....................................76
SECTION 6.05. Maintenance of Properties; Insurance......................76
SECTION 6.06. Books and Records; Inspection Rights......................76
SECTION 6.07. Compliance with Laws......................................77
SECTION 6.08. Use of Proceeds and Letters of Credit.....................77
SECTION 6.09. Hedging Agreements........................................77
SECTION 6.10. Certain Obligations Respecting Subsidiaries...............78
ARTICLE VII NEGATIVE COVENANTS................................................78
SECTION 7.01. Indebtedness..............................................78
SECTION 7.02. Liens.....................................................80
ii
SECTION 7.03. Mergers, Consolidations, Etc..............................82
SECTION 7.04. Acquisitions..............................................83
SECTION 7.05. Dispositions..............................................85
SECTION 7.06. Lines of Business.........................................88
SECTION 7.07. Investments...............................................89
SECTION 7.08. Restricted Payments.......................................90
SECTION 7.09. Transactions with Affiliates..............................92
SECTION 7.10. Restrictive Agreements....................................92
SECTION 7.11. Certain Financial Covenants...............................93
SECTION 7.12. Subordinated Indebtedness.................................94
SECTION 7.13. Modifications of Certain Documents........................95
SECTION 7.14. License Subsidiaries......................................95
SECTION 7.15. Preferred Stock...........................................97
SECTION 7.16. Program Services Agreements...............................97
SECTION 7.17. Limitation on Cure Rights.................................98
ARTICLE VIII EVENTS OF DEFAULT................................................98
ARTICLE IX THE ADMINISTRATIVE AGENT..........................................102
ARTICLE X MISCELLANEOUS......................................................105
SECTION 10.01. Notices.................................................105
SECTION 10.02. Waivers; Amendments.....................................106
SECTION 10.03. Expenses; Indemnity; Damage Waiver......................107
SECTION 10.04. Successors and Assigns..................................108
SECTION 10.05. Survival................................................110
SECTION 10.06. Counterparts; Integration; Effectiveness................111
SECTION 10.07. Severability............................................111
SECTION 10.08. Right of Setoff.........................................111
SECTION 10.09. Governing Law; Jurisdiction; Etc........................111
SECTION 10.10. WAIVER OF JURY TRIAL....................................112
SECTION 10.11. Headings................................................113
SECTION 10.12. Treatment of Certain Information; Confidentiality.......113
SECTION 10.13. Cure of Defaults by Agent or Lenders....................114
iii
SCHEDULE 1.01 - Commitments
SCHEDULE 1.03 - Owned and Contract Stations
SCHEDULE 4.06(a) - Litigation
SCHEDULE 4.06(b) - Environmental Matters
SCHEDULE 4.13(a) - Material Indebtedness
SCHEDULE 4.13(b) - Liens
SCHEDULE 4.13(c) - Film Cash Payments
SCHEDULE 4.13(d) - Interest Rate Protection Agreements
SCHEDULE 4.14 - Capitalization
SCHEDULE 4.15(a) - Subsidiaries
SCHEDULE 4.15(b) - Investments
SCHEDULE 4.16 - Broadcast Licenses
SCHEDULE 4.18 - Program Service Agreements
SCHEDULE 4.19 - Option Agreements
SCHEDULE 4.20 - Asset Use and Operating Agreements
SCHEDULE 7.04 - Approved Acquisitions
SCHEDULE 7.10 - Restrictive Agreements
EXHIBIT A - Form of Security Agreement
EXHIBIT B - Form of Guarantee Assumption Agreement
EXHIBIT C - Form of Asset Use and Operating Agreement
EXHIBIT D - Form of Incremental Term Loan Activation Notice
EXHIBIT E - Form of Assignment and Acceptance
EXHIBIT F - Form of Consent and Agreement
iv
CREDIT AGREEMENT dated as of May 28, 1998, between XXXXXXXX BROADCAST
GROUP, INC., the SUBSIDIARY GUARANTORS party hereto, the LENDERS party hereto,
THE CHASE MANHATTAN BANK, as Administrative Agent and NATIONSBANK OF TEXAS,
N.A., as Documentation Agent.
The parties hereto agree as follows:
ARTICLE I
DEFINITIONS
SECTION 1.01. Defined Terms. As used in this Agreement, the following terms
have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are bearing interest at a
rate determined by reference to the Alternate Base Rate.
"Acquisitions" means the Approved Acquisitions and the Other Acquisitions.
"Additional Senior Subordinated Notes" has the meaning assigned to such
term in Section 7.01(c).
"Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent" means Chase, in its capacity as administrative agent
for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire in a
form supplied by the Administrative Agent.
"Affiliate" means, with respect to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.
Notwithstanding the foregoing, no individual shall be deemed to be an Affiliate
solely by reason of his or her being a director, officer or employee of the
Borrower or any of its Subsidiaries and the Borrower and its Subsidiaries shall
not be deemed to be Affiliates of each other.
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"Aggregate Consideration" means, in connection with any Acquisition, the
aggregate consideration, in whatever form (including, without limitation, cash
payments, the principal amount of promissory notes and Indebtedness assumed, the
aggregate amounts payable to acquire, extend and exercise any option, the
aggregate amount payable under non-competition agreements and management
agreements, and the fair market value of other property delivered) paid,
delivered or assumed by the Borrower and its Subsidiaries for such Acquisition.
"Alternate Base Rate" means, for any day, a rate per annum equal to the
greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate
Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.
"Ancillary Documents" means the Asset Use and Operating Agreements, the
Program Services Agreements, the Subordinated Debt Documents and the Material
Acquisition Documents.
"Applicable Percentage" means (a) with respect to any Revolving Lender for
purposes of Section 2.04 or in respect of any indemnity claim under Section
10.03(c) arising out of an action or omission of the Issuing Lender under this
Agreement, the percentage of the total Revolving Commitments represented by such
Revolving Lender's Revolving Commitment, and (b) with respect to any Lender in
respect of any indemnity claim under Section 10.03(c) arising out of an action
or omission of the Administrative Agent under this Agreement, the percentage of
the total Commitments or Loans of each of the Classes hereunder represented by
the aggregate amount of such Lender's Commitments or Loans of each of the
Classes hereunder. If the Revolving Commitments have terminated or expired, the
Applicable Percentages shall be determined based upon the Revolving Commitments
most recently in effect, giving effect to any assignments.
"Applicable Rate" means, for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the commitment fees payable hereunder, as
the case may be, the applicable rate per annum set forth below under the caption
"ABR Spread", "Eurodollar Spread" or "Commitment Fee Rate", respectively, based
upon the Total Indebtedness Ratio as of the most recent determination date;
provided that until the Quarterly Date on or immediately following the date of
receipt of the financial statements of the Borrower delivered pursuant to
Section 6.01(b) (and the related Financial Officer's certificate) for the fiscal
quarter ending June 30, 1998 the "Applicable Rate" shall be determined by
reference to the certificate delivered pursuant to Section 5.01(e)(ii) (but in
no event shall the Applicable Rate be less than the applicable rate per annum
set forth in the second row from the top of the table below):
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Total Indebtedness Ratio: ABR Eurodollar Commitment
Spread (%) Spread (%) Fee Rate (%)
------------------------------------- -------------------------- -------------------------- ------------------------
Greater than or equal to 6.50 to 1 0.625 1.875 0.375
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 6.50 to 1 and greater 0.25 1.50 0.375
than or equal to 6.00 to 1
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 6.00 to 1 and greater 0 1.25 0.375
than or equal to 5.50 to 1
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 5.50 to 1 and greater 0 1.00 0.375
than or equal to 5.00 to 1
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 5.00 to 1 and greater 0 0.75 0.25
than or equal to 4.50 to 1
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 4.50 to 1 and greater 0 0.625 0.25
than or equal to 4.00 to 1
------------------------------------- -------------------------- -------------------------- ------------------------
Less than 4.00 to 1 0 0.50 0.25
===================================== ========================== ========================== ========================
For purposes of the foregoing (but subject to the proviso above), (i) the Total
Indebtedness Ratio shall be determined as of the end of each fiscal quarter of
the Borrower's fiscal year based upon the Borrower's consolidated financial
statements delivered pursuant to Section 6.01(a) or (b) (and as set forth in the
related certificate of a Financial Officer delivered pursuant to Section
6.01(c)) and (ii) each change in the Applicable Rate resulting from a change in
the Total Indebtedness Ratio shall be effective during the period commencing on
the Quarterly Date on or immediately following the date of receipt of such
certificate and ending on the next succeeding Quarterly Date thereafter;
provided that, notwithstanding the foregoing, the Applicable Rate shall not as a
consequence of this proviso be reduced for any period during which an Event of
Default shall have occurred and be continuing. Notwithstanding the foregoing,
the Applicable Rate with respect to any Incremental Term Loan and any
Incremental Term Loan Commitment means the rate per annum for such Incremental
Term Loan and Incremental Term Loan Commitment agreed to by the Borrower and the
respective Incremental Term Loan Lender in the related Incremental Term Loan
Activation Notice.
"Approved Acquisitions" means the acquisitions identified in Schedule 7.04.
"Asset Use and Operating Agreements" means (a) the agreements listed in
Schedule 4.20 and (b) with respect to each Owned Station hereafter acquired by
the Borrower, an Asset Use and Operating Agreement entered into after the date
hereof, as contemplated by
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Section 7.14, between the Subsidiary of the Borrower that operates such Owned
Station and a License Subsidiary with respect to such Owned Station
substantially in the form of Exhibit C.
"Assignment and Acceptance" means an assignment and acceptance entered into
by a Lender and an assignee (with the consent of any party whose consent is
required by Section 10.04), and accepted by the Administrative Agent, in the
form of Exhibit E or any other form approved by the Administrative Agent.
"Xxxxx Employment Agreement" means the Employment Agreement dated as of
April 10, 1996 between Xxxxx Xxxxx and the Borrower.
"BCF Percentage" means, at any date, the ratio, expressed as a percentage,
obtained by dividing (a) the portion of Broadcast Cash Flow attributable to
Contract Stations for the twelve-month period ending on, or most recently ended
prior to such date by (b) Broadcast Cash Flow for such period. Solely for
purposes of this definition, the term "Contract Stations" shall be deemed not to
include, for the period prior to June 30, 1999, any Station that is a part of
the River City Acquisition, the Max Media Acquisition or the Xxxxxxxx Broadcast
Acquisition.
"Board" means the Board of Governors of the Federal Reserve System of the
United States of America.
"Borrower" means Xxxxxxxx Broadcast Group, Inc., a Maryland corporation.
"Borrowing" means Loans of the same Class and Type, made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a
single Interest Period is in effect.
"Borrowing Request" means a request by the Borrower for a Borrowing in
accordance with Section 2.03.
"Broadcast Cash Flow" means, for any period, the sum of EBITDA plus
Corporate Expense for such period; provided that for the purposes of the
definition of "Unrestricted Subsidiary" Broadcast Cash Flow shall refer to
EBITDA and Corporate Expense as if each reference therein to Borrower and its
Subsidiaries included Unrestricted Subsidiaries.
"Broadcast Licenses" means (a) the licenses, permits, authorizations or
certificates to construct, own, operate or promote the Stations granted by the
FCC, and all extensions, additions and renewals thereto or thereof, and (b) the
licenses, permits, authorizations or certificates which are necessary or
desirable to construct, own, operate or promote the Stations granted by
administrative law courts or any state, county, city, town, village or other
local government authority, and all extensions, additions and renewals thereto
or thereof.
"Business Day" means any day that is not a Saturday, Sunday or other day on
which commercial banks in New York City are authorized or required by law to
remain closed; provided that, when used in connection with a Eurodollar Loan,
the term "Business Day" shall
-5-
also exclude any day on which banks are not open for dealings in dollar deposits
in the London interbank market.
"Capital Expenditures" means, for any period, expenditures (including the
aggregate amount of Capital Lease Obligations incurred during such period) made
by the Borrower or any of its Subsidiaries to acquire or construct fixed assets,
plant and equipment (including renewals, improvements and replacements, but
excluding repairs) during such period computed in accordance with GAAP, but
excluding any such expenditures made as part of any Acquisition.
"Capital Lease Obligations" of any Person means the obligations of such
Person to pay rent or other amounts under any lease of (or other arrangement
conveying the right to use) real or personal property, or a combination thereof,
which obligations are required to be classified and accounted for as capital
leases on a balance sheet of such Person under GAAP, and the amount of such
obligations shall be the capitalized amount thereof determined in accordance
with GAAP.
"Casualty Event" means, with respect to any property of any Person, any
loss of or damage to, or any condemnation or other taking of, such property for
which such Person or any of its Subsidiaries receives insurance proceeds, or
proceeds of a condemnation award or other compensation.
"Change in Law" means (a) the adoption of any law, rule or regulation after
the date of this Agreement, (b) any change in any law, rule or regulation or in
the interpretation or application thereof by any Governmental Authority after
the date of this Agreement or (c) compliance by any Lender or the Issuing Lender
(or, for purposes of Section 2.13(b), by any lending office of such Lender or by
such Lender's or the Issuing Lender's holding company, if any) with any request,
guideline or directive (whether or not having the force of law) of any
Governmental Authority made or issued after the date of this Agreement.
"Chase" means The Chase Manhattan Bank.
"Class", when used in reference to any Loan or Borrowing, refers to whether
such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Term
Loans or Incremental Term Loans and, when used in reference to any Commitment,
refers to whether such Commitment is a Revolving Commitment, a Term Loan
Commitment or an Incremental Term Loan Commitment.
"Code" means the Internal Revenue Code of 1986, as amended from time to
time.
"Collateral Account" has the meaning assigned to such term in Section 4.01
of the Security Agreement.
"Commitment" means a Revolving Commitment, a Term Loan Commitment or an
Incremental Term Loan Commitment, or any combination thereof (as the context
requires).
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"Confidential Information Memorandum" means the Confidential Information
Memorandum dated April 1998 with respect to the syndication of the credit
facilities provided herein.
"Consent and Agreement" means a Consent and Agreement substantially in the
form of Exhibit F.
"Contract Station" means (a) each television or radio station identified as
such in Schedule 1.03(b), each television or radio station that is the subject
of an acquisition referred to in clause (b) of the definition of "Other
Acquisition" in this Section consummated by the Borrower or any of its
Subsidiaries on or after the date hereof and (c) any Station with which the
Borrower has entered into a Program Services Agreement on or after the date
hereof, in each case until such time, if any, as such television or radio
station becomes an Owned Station.
"Control" means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person, whether
through the ability to exercise voting power, by contract or otherwise; provided
that, in any event, any Person which owns directly or indirectly 5% or more of
the securities having ordinary voting power for the election of directors or
other governing body of a corporation or 5% or more of the partnership or other
ownership interests of any other Person (other than as a limited partner of such
other Person) will be deemed to control such corporation, partnership or other
Person. "Controlling" and "Controlled" have meanings correlative thereto.
"Converted Senior Subordinated Notes" has the meaning assigned to such term
in Section 7.01(d).
"Corporate Expense" means, for any period, all general and administrative
expenses of the Borrower for such period. In the event that any general or
administrative expense of the type heretofore borne by the Borrower is hereafter
borne by any Subsidiary of the Borrower, such general or administrative expense
borne by such Subsidiary shall be deemed to be "Corporate Expense" for the
purposes hereof.
"XXXXXX" means XXXXXX Enterprises, Inc., a Maryland corporation.
"Debt Service" means, for any period, the sum, for the Borrower and its
Subsidiaries (determined on a consolidated basis without duplication in
accordance with GAAP), of the following: (a) all scheduled payments of principal
of Indebtedness (including, without limitation, the principal component of any
payments in respect of Capital Lease Obligations) scheduled to be made during
such period plus (b) all Interest Expense for such period plus (c) fees and
other expenses payable in connection with this Agreement for such period
(excluding such fees and expenses constituting transaction costs payable on the
Effective Date, but including agency fees).
-7-
"Default" means any event or condition which constitutes an Event of
Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.
"Designated HYTOPs Subsidiary" means (i) KDSM, but only for so long as KDSM
owns no property other than the common equity ownership interests in Xxxxxxxx
Capital, the Existing Preferred Stock, the capital stock of KDSM Licensee,
property directly related to the operation of KDSM-TV, Indebtedness of the
Borrower permitted by Section 7.01(h) and the profits and proceeds generated by
the aforementioned property or (ii) New HYTOPs Sub, but only for so long as New
HYTOPs Sub owns no property other than the common equity ownership interests in
the New HYTOPs Trust, the New HYTOPs Preferred Stock, the capital stock of New
HYTOPs Sub Licensee, property directly related to the operation of a Station,
Indebtedness of the Borrower permitted by Section 7.01(h) and the profits and
proceeds generated by the aforementioned property.
"Disposition" means any sale, assignment, transfer or other disposition of
any property (whether now owned or hereafter acquired) by the Borrower or any of
its Subsidiaries to any other Person other than any sale, assignment, transfer
or other disposition of any property sold or disposed of in the ordinary course
of business and on ordinary business terms.
"Documentation Agent" means Nationsbank of Texas, N.A., in its capacity as
documentation agent for the Lenders hereunder.
"dollars" or "$" refers to lawful money of the United States of America.
"EBITDA" means, for any period, the sum, for the Borrower and its
Subsidiaries (determined on a consolidated basis without duplication in
accordance with GAAP), of the following for such period (subject to Section
1.05(d)): (a) net income for such period plus (b) taxes to the extent deducted
in determining net income for such period plus (c) depreciation and amortization
(including film amortization) for such period plus (d) Interest Expense for such
period to the extent deducted in determining net income for such period plus (e)
all other non-cash charges to the extent deducted in determining net income for
such period minus (f) Film Cash Payments made or scheduled to be made during
such period minus (g) Corporate Expense to the extent not deducted in
determining net income for such period minus (h) non-cash revenues to the extent
included in net income for such period plus (i) Restricted Payments made by the
Borrower and its Subsidiaries as permitted by Section 7.08 to the extent
deducted in determining net income for such period or included in determining
Corporate Expense pursuant to the preceding clause (g) for such period plus (j)
Permitted Termination Payments to the extent deducted in determining net income
for such period or included in determining Corporate Expense pursuant to the
preceding clause (g) for such period minus (k) interest and other income to the
extent included in net income for such period minus (l) extraordinary gains to
the extent included in net income plus (m) extraordinary losses to the extent
deducted in determining net income for such period.
-8-
"EBITDA Percentage" means, as of the date of the consummation of any sale,
disposition or exchange of assets (or capital stock (or other equity ownership
interest)) contemplated by clause (d), (e) or (h) of Section 7.05, the ratio,
expressed as a percentage, obtained by dividing (a) the portion of EBITDA
attributable to such assets (but excluding the EBITDA attributable to the assets
of WTTE-TV, WPTZ-TV, WFFF-TV, WNNE-TV, WLAC-FM, WLAC-AM, WJZC-FM, WBBF-AM,
WBEE-FM, WKLX-FM, WQRV-FM, KKSN-AM, KKSN-FM, KKRH-FM, WBYU-AM, WEZB-FM, WRNO-FM
and KBLA-AM) for the twelve-month period ending on, or most recently ended prior
to, such date by (b) EBITDA for such period.
"Effective Date" means the date on which the conditions specified in
Section 5.01 are satisfied (or waived in accordance with Section 10.02).
"Environmental Laws" means all laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued,
promulgated or entered into by any Governmental Authority, relating in any way
to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to health
and safety matters.
"Environmental Liability" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Borrower or any Subsidiary directly or
indirectly resulting from or based upon (a) violation of any Environmental Law,
(b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials,
(d) the release or threatened release of any Hazardous Materials into the
environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.
"Equity Issuance" means (a) any issuance or sale by the Borrower or any of
its Subsidiaries after the Effective Date of (i) any capital stock, (ii) any
warrants or options exercisable in respect of capital stock (other than any
warrants or options relating to capital stock of the Borrower issued to
directors, officers or employees of the Borrower or any of its Subsidiaries
pursuant to employee benefit plans established in the ordinary course of
business and any capital stock of the Borrower issued upon the exercise of such
warrants or options) or (iii) any other security or instrument representing an
equity interest (or the right to obtain any equity interest) in the Borrower or
any of its Subsidiaries or (b) the receipt by the Borrower or any of its
Subsidiaries after the Effective Date of any capital contribution (whether or
not evidenced by any equity security issued by the recipient of such
contribution); provided that Equity Issuance shall not include (x) any such
issuance or sale by any Subsidiary of the Borrower to the Borrower or any Wholly
Owned Subsidiary of the Borrower, (y) any capital contribution by the Borrower
or any Wholly Owned Subsidiary of the Borrower to any Subsidiary of the Borrower
or (z) any split-up, revision, reclassification or other like change of any
outstanding capital stock.
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"Equity Rights" means, with respect to any Person, any subscriptions,
options, warrants, commitments, preemptive rights or agreements of any kind
(including any shareholders' or voting trust agreements) for the issuance, sale,
registration or voting of, or securities convertible into, any additional shares
of capital stock of any class, or partnership or other ownership interests of
any type in, such Person.
"ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time.
"ERISA Affiliate" means any trade or business (including Unrestricted
Subsidiaries and whether or not incorporated) that, together with the Borrower,
is treated as a single employer under Section 414(b) or (c) of the Code, or,
solely for purposes of Section 302 of ERISA and Section 412 of the Code, is
treated as a single employer under Section 414 of the Code.
"ERISA Event" means (a) any "reportable event", as defined in Section 4043
of ERISA or the regulations issued thereunder with respect to a Plan (other than
an event for which the 30-day notice period is waived); (b) the existence with
respect to any Plan of an "accumulated funding deficiency" (as defined in
Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the
filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an
application for a waiver of the minimum funding standard with respect to any
Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any
liability under Title IV of ERISA with respect to the termination of any Plan;
(e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or
Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the
Borrower or any of its ERISA Affiliates of any liability with respect to the
withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the
receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.
"Eurodollar", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Adjusted LIBO Rate.
"Event of Default" has the meaning assigned to such term in Article VIII.
"Excess Cash Flow" means, for any period, the sum (without duplication) of
(a) EBITDA for such period minus (b) the sum (without duplication) of (i) all
Debt Service during such period plus (ii) all Capital Expenditures made by the
Borrower and its Subsidiaries during such period plus (iii) the excess, if any,
of the consolidated Working Investment of the Borrower and its Subsidiaries at
the end of such period over the consolidated Working Investment of the Borrower
and its Subsidiaries at the beginning of such period (or minus the excess, if
any, of such Working Investment at the beginning of such period over such
Working Investment at the
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end of such period) plus (c) Film Cash Payments scheduled to have been made, but
not made, during such period minus (d) the aggregate amount of fees paid by the
Borrower and its Subsidiaries to XXXXXX during such period minus (e) the
aggregate amount of Federal and state income taxes paid by the Borrower and its
Subsidiaries, net of refunds, for such period minus (f) the aggregate amount of
dividends paid in cash in respect of Preferred Stock during such period as
permitted by Section 7.08.
"Excluded Subsidiaries" means XXXXXX and the Norfolk Trust.
"Excluded Taxes" means, with respect to the Administrative Agent, any
Lender, the Issuing Lender or any other recipient of any payment to be made by
or on account of any obligation of the Borrower hereunder, (a) income or
franchise taxes imposed on (or measured by) its net income by the United States
of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located, (b) any branch
profits taxes imposed by the United States of America or any similar tax imposed
by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the
Borrower under Section 2.17(b)), any withholding tax that is imposed on amounts
payable to such Foreign Lender at the time such Foreign Lender becomes a party
to this Agreement or is attributable to such Foreign Lender's failure or
inability to comply with Section 2.15(e), except to the extent that such Foreign
Lender's assignor (if any) was entitled, at the time of assignment, to receive
additional amounts from the Borrower with respect to such withholding tax
pursuant to Section 2.15(a).
"Existing Credit Agreement" means the Third Amended and Restated Credit
Agreement dated as of May 20, 1997 between the Borrower, the Subsidiary
Guarantors party thereto, the lenders party thereto and The Chase Manhattan Bank
as agent for said lenders.
"Existing HYTOPs Transaction" means the transactions relating to the
issuance of the Existing HYTOPs.
"Existing HYTOPs" means the $200,000,000 (in liquidation amount) 11-5/8%
High Yield Trust Offered Preferred Securities issued by Xxxxxxxx Capital on
March 14, 1997.
"Existing Preferred Stock" means Preferred Stock of the Borrower
outstanding on the date hereof and described in Schedule 4.14.
"Existing Senior Subordinated Indebtedness" means the Indebtedness
evidenced or provided by the Existing Senior Subordinated Note Indentures
(including the senior subordinated notes issued by the Borrower from time to
time thereunder and the Guarantees of such Indebtedness provided by any
Subsidiary Guarantor thereunder).
"Existing Senior Subordinated Note Indentures" means, collectively, (a) the
Indenture dated as of December 9, 1993 among the Borrower, certain of its
Subsidiaries and First Union National Bank of North Carolina, as trustee (and
the 10% Senior Subordinated Notes due
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2003 issued by the Borrower thereunder) (the "1993 Senior Subordinated Note
Indenture"), (b) the Indenture dated as of August 28, 1995 among the Borrower,
certain of its Subsidiaries and United States Trust Company of New York, as
trustee (and the 10% Senior Subordinated Notes due 2005 issued by the Borrower
thereunder), (c) the Indenture dated as of July 2, 1997 among the Borrower,
certain of its Subsidiaries and First Union National Bank of Maryland, as
trustee (and the 9% Senior Subordinated Notes due 2007 issued by the Borrower
thereunder) and (d) the Indenture dated as of December 17, 1997 among the
Borrower and First Union National Bank of Maryland, as trustee (and the 8-3/4%
Senior Subordinated Notes due 2007 issued by the Borrower thereunder) (the "1997
(December) Senior Subordinated Note Indenture").
"FCC" means the Federal Communications Commission or any governmental
authority substituted therefor.
"Federal Funds Effective Rate" means, for any day, the weighted average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on
overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers, as published on the next succeeding Business
Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by the Administrative Agent from three Federal funds
brokers of recognized standing selected by it.
"Film Cash Payments" means, for any period, the sum (determined on a
consolidated basis and without duplication) of all payments by the Borrower and
its Subsidiaries made or scheduled to be made during such period in respect of
Film Obligations; provided that amounts applied to the prepayment of Film
Obligations owing under any contract evidencing a Film Obligation under which
the amount owed by the Borrower or any of its Subsidiaries exceeds the remaining
value of such contract to the Borrower or such Subsidiary, as reasonably
determined by the Borrower shall not be deemed to be Film Cash Payments. For the
purposes of Section 7.11(e) only, (a) if the payment schedule for a Film
Obligation is modified at no cost (including, but not limited to, interest
costs) to the Borrower or any of its Subsidiaries, then the payments with
respect to such Film Obligation shall be deemed to be scheduled to be made
pursuant to such modified schedule and (b) any down payment on a Film Obligation
shall be equally allocated over the term of the payment period for such Film
Obligation in an amount per month during such payment period equal to the amount
of such downpayment divided by the number of months during such payment period.
"Film Obligations" means obligations in respect of the purchase, use,
license or acquisition of programs, programming materials, films, and similar
assets used in connection with the business and operations of the Borrower and
its Subsidiaries.
"Final FCC Order" means an order of the FCC that is no longer subject to
reconsideration or review by the FCC or by any court or administrative body.
"Financial Officer" means the chief financial officer or treasurer of the
Borrower.
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"Fixed Charges Ratio" means, as at any date, the ratio of (a) EBITDA for
the period of twelve consecutive full calendar months ending on or most recently
ended prior to such date to (b) the sum for such period of (i) Debt Service plus
(ii) Capital Expenditures (but excluding Capital Expenditures made in connection
with the conversion from analog to digital format of the televisions
broadcasting facilities and equipment of the Borrower and its Subsidiaries) plus
(iii) the aggregate amount of Federal and state income taxes paid by the
Borrower and its Subsidiaries, net of refunds, during such period plus (iv) the
aggregate amount of fees paid by the Borrower and its Subsidiaries to XXXXXX
during such period plus (v) Restricted Payments made as permitted by Section
7.08(b) during such period.
"Foreign Lender" means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.
"GAAP" means generally accepted accounting principles in the United States
of America.
"Glencairn" means Glencairn, Ltd., a Maryland corporation.
"Glencairn Options" means options for the purchase of all of the issued and
outstanding non-voting stock of Glencairn.
"Governmental Authority" means the government of the United States of
America, any other nation or any political subdivision thereof, whether state or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government.
"Guarantee" of or by any Person (the "guarantor") means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic
effect of guaranteeing any Indebtedness or other obligation of any other Person
(the "primary obligor") in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase
or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to purchase or
lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain
working capital, equity capital or any other financial statement condition or
liquidity of the primary obligor so as to enable the primary obligor to pay such
Indebtedness or other obligation or (d) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or
obligation; provided that the term "Guarantee" shall not include (i)
endorsements for collection or deposit in the ordinary course of business or
(ii) any Program Services Agreement or any obligations thereunder.
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"Guarantee Assumption Agreement" means a Guarantee Assumption Agreement
substantially in the form of Exhibit B by an entity that, pursuant to Section
6.10(a) is required to become a "Subsidiary Guarantor" hereunder in favor of the
Administrative Agent.
"Guaranteed Debt" of any Person means, without duplication, all
Indebtedness of any other Person referred to in the definition of Indebtedness
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement (a) to pay
or purchase such Indebtedness or to advance or supply funds for the payment or
purchase of such Indebtedness, (b) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Indebtedness or to assure the holder
of such Indebtedness against loss, (c) to supply funds to, or in any other
manner invest in, the debtor (including any agreement to pay for property or
services without requiring that such property be received or such services be
rendered), (d) to maintain working capital or equity capital of the debtor, or
otherwise to maintain the net worth, solvency or other financial condition of
the debtor or (e) otherwise to assure a creditor against loss.
"Hazardous Materials" means all explosive or radioactive substances or
wastes and all hazardous or toxic substances, wastes or other pollutants,
including petroleum or petroleum distillates, asbestos or asbestos containing
materials, polychlorinated biphenyls, radon gas, infectious or medical wastes
and all other substances or wastes of any nature regulated pursuant to any
Environmental Law.
"Hedging Agreement" means any swap agreement, cap agreement, collar
agreement, put or call, futures contract, forward contract or similar agreement
or arrangement entered into to protect against or mitigate the effect of
fluctuations in the price of the Borrower's publicly issued common stock or in
interest rates, foreign exchange rates or prices of commodities used in the
business of the Borrower and its Subsidiaries and any master agreement relating
to any of the foregoing.
"HYTOP Guaranties" means (a) the Parent Guarantee Agreement dated as of
March 12, 1997 between the Borrower and First Union National Bank of Maryland,
(b) that certain Parent Debenture Guarantee provided by the Borrower in
connection with the Existing HYTOPs Transaction and (c) Guarantees issued by the
Borrower in connection with the New HYTOPs Transaction that are substantially
identical, mutatis mutandis, to the Guarantees referred to in the foregoing
clauses (a) and (b), respectively.
"Immaterial Broadcast Licenses" means Broadcast Licenses (other than main
transmitter licenses, auxiliary transmitter licenses (to the extent in existence
on the date hereof) and studio transmitter links (to the extent necessary for
the continued operation of the Stations), in each case granted by the FCC, and
extensions and renewals thereto or thereof) the absence of which individually or
together with all other such Broadcast Licenses could not have a Material
Adverse Effect.
-14-
"Incremental Term Loan" means a Loan made pursuant to clause (c) of Section
2.01.
"Incremental Term Loan Activation Date" means the date designated as such
in the Incremental Term Loan Activation Notice.
"Incremental Term Loan Activation Notice" means a notice substantially in
the form of Exhibit D.
"Incremental Term Loan Commitment" means, with respect to each Lender, the
commitment, if any, of such Lender to make one or more Incremental Term Loans on
and after the related Incremental Term Loan Activation Date in an aggregate
principal amount up to but not exceeding the amount set opposite the name of
such Lender on the Incremental Term Loan Activation Notice under the caption
"Incremental Term Loan Commitment" or in the Assignment and Acceptance pursuant
to which such Lender shall have assumed such Incremental Term Loan Commitment,
as applicable. The aggregate principal amount of the Incremental Term Loan
Commitments and the Incremental Term Loans on the Effective Date is zero and
shall not exceed $400,000,000.
"Incremental Term Loan Commitment Termination Date" means December 31,
2000.
"Incremental Term Loan Lender" means a Lender with an Incremental Term Loan
Commitment or an outstanding Incremental Term Loan.
"Incremental Term Loan Maturity Date" means the Quarterly Date falling on
or nearest to June 30, 2006.
"Incremental Term Loan Principal Payment Dates" means the Quarterly Dates
falling on or nearest to March 31, June 30, September 30 and December 31 of each
year, commencing with March 31, 2001, through and including the Incremental Term
Loan Maturity Date.
"Indebtedness" means of any Person (without duplication): (a) indebtedness
created, issued or incurred by such Person for borrowed money (whether by loan
or the issuance and sale of debt securities or the sale of property to another
Person subject to an understanding or agreement, contingent or otherwise, to
repurchase such property from such Person); (b) obligations of such Person to
pay the deferred purchase or acquisition price of property or services, other
than trade accounts payable (other than for borrowed money) arising, and accrued
expenses incurred, in the ordinary course of business so long as such trade
accounts payable are payable within 90 days of the date the respective goods are
delivered or the respective services are rendered; (c) Indebtedness of others
secured by a Lien on the property of such Person, whether or not the respective
Indebtedness so secured has been assumed by such Person; (d) obligations of such
Person in respect of letters of credit or similar instruments issued or accepted
by banks and other financial institutions for account of such Person; (e)
Capital Lease
-15-
Obligations of such Person; (f) Indebtedness of others guaranteed by such
Person; (g) obligations of such Person under any non-competition agreement,
consulting agreement or similar agreement (other than the Xxxxx Employment
Agreement) entered into in connection with any Acquisition; and (h) if the
Aggregate Consideration payable by such Person to extend and exercise any option
acquired in connection with any Other Acquisition (an "Extension and Exercise
Price") exceeds 20% of the Aggregate Consideration payable in connection with
such Other Acquisition, such Extension and Exercise Price; provided that in no
event shall the term "Indebtedness" include (i) Film Obligations of such Person,
(ii) obligations of such Person under any Program Services Agreement, (iii)
Preferred Stock, (iv) the Guarantees by the Borrower of the KDSM Senior
Debentures and the New HYTOPs Senior Debentures prior to the respective times
that such Guarantees become effective; or (v) obligations of the Borrower under
the Senior Subordinated Note Indentures and (from and after the consummation of
the Xxxxxxxx Acquisition) the Xxxxxxxx Notes to the extent that they have been
purchased, redeemed, retired, acquired or defeased by the Borrower or any of its
Subsidiaries as permitted under Section 7.12(a); provided, further, that upon
the effectiveness of the Guarantee by the Borrower of the KDSM Senior Debentures
or the New HYTOPs Senior Debentures, such Guarantee shall constitute
"Indebtedness" of the Borrower for all purposes of this Agreement.
"Indemnified Taxes" means Taxes other than Excluded Taxes.
"Initial FCC Order" means an order of the FCC that is not a Final FCC
Order.
"Interest Coverage Ratio" means, as at any date, the ratio of (a) EBITDA
for the period of twelve consecutive full calendar months ending on or most
recently ended prior to such date to (b) Interest Expense for such period.
"Interest Election Request" means a request by the Borrower to convert or
continue a Borrowing in accordance with Section 2.06.
"Interest Expense" means, for any period, the sum, for the Borrower and its
Subsidiaries (determined on a consolidated basis without duplication in
accordance with GAAP), of the following (subject to paragraphs (d) and (e) of
Section 1.05): (a) all interest in respect of Indebtedness accrued or
capitalized during such period (whether or not actually paid during such period)
plus (b) the net amounts payable (or minus the net amounts receivable) under
Interest Rate Protection Agreements accrued during such period (whether or not
actually paid or received during such period) minus (c) all cash interest income
received during such period. Any reference herein to calculating Interest
Expense for any period on a "pro forma" basis means that, for purposes of the
preceding clause (a), (i) the Indebtedness on the basis of which Interest
Expense is so calculated shall mean Indebtedness outstanding as of the relevant
date of calculation after giving effect to any repayments and any incurrence of
Indebtedness on such date and (ii) such calculation shall be made applying the
respective rates of interest in effect for such Indebtedness on such date.
"Interest Payment Date" means (a) with respect to any ABR Loan, each
Quarterly Date and (b) with respect to any Eurodollar Loan, the last day of the
Interest Period applicable to
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the Borrowing of which such Loan is a part and, in the case of a Eurodollar
Borrowing with an Interest Period of more than three months' duration, each day
prior to the last day of such Interest Period that occurs at intervals of three
months' duration after the first day of such Interest Period.
"Interest Period" means, with respect to any Eurodollar Borrowing, the
period commencing on the date of such Borrowing and ending on the numerically
corresponding day in the calendar month that is one, two, three or six months
(or, with the consent of each Lender, nine months) thereafter, as the Borrower
may elect; provided that (i) if any Interest Period would end on a day other
than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period that commences on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such
Interest Period. For purposes hereof, the date of a Borrowing initially shall be
the date on which such Borrowing is made and thereafter shall be the effective
date of the most recent conversion or continuation of such Borrowing.
"Interest Rate Protection Agreement" means a Hedging Agreement providing
for the transfer or mitigation of interest risks either generally or under
specific contingencies.
"Investment" means, for any Person, (a) the acquisition (whether for cash,
property, services or securities or otherwise) of capital stock, bonds, notes,
debentures, partnership or other ownership interests or other securities of any
other Person or any agreement to make any such acquisition (including any "short
sale" or any sale of any securities at a time when such securities are not owned
by the Person entering into such sale), (b) the making of any deposit with, or
advance, loan or other extension of credit to, any other Person (including the
purchase of property from another Person subject to an understanding or
agreement, contingent or otherwise, to resell such property to such Person), but
excluding any such advance, loan or extension of credit having a term not
exceeding 90 days arising in connection with the sale of programming or
advertising time by such Person in the ordinary course of business or (c) the
entering into of any Guarantee of, or other contingent obligation with respect
to, Indebtedness or other liability of any other Person and (without
duplication) any amount committed to be advanced, lent or extended to such
Person.
"Issuing Lender" means Chase, in its capacity as the issuer of Letters of
Credit hereunder, and its successors in such capacity as provided in Section
2.04(j).
"KDSM" means KDSM, Inc., a Maryland corporation.
"KDSM Licensee" means KDSM Licensee, Inc., a Delaware corporation that owns
no property other than the Broadcast Licenses relating to KDSM-TV.
-17-
"KDSM Senior Debentures" means the 11-5/8% Senior Debentures due 2009
issued by KDSM in connection with the Existing HYTOPs Transaction and
outstanding on the date hereof, in an aggregate principal amount on the date
hereof equal to $206,200,000.
"LC Disbursement" means a payment made by the Issuing Lender pursuant to a
Letter of Credit.
"LC Exposure" means, at any time, the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit at such time plus (b) the aggregate
amount of all LC Disbursements that have not yet been reimbursed by or on behalf
of the Borrower at such time. The LC Exposure of any Lender at any time shall be
its Applicable Percentage of the total LC Exposure at such time.
"Lenders" means the Persons listed on Schedule 1.01 and any other Person
that shall have become a party hereto pursuant to an Assignment and Acceptance,
other than any such Person that ceases to be a party hereto pursuant to an
Assignment and Acceptance.
"Letter of Credit" means any letter of credit issued pursuant to this
Agreement.
"Letter of Credit Documents" means, with respect to any Letter of Credit,
collectively, any application therefor and any other agreements, instruments,
guarantees or other documents (whether general in application or applicable only
to such Letter of Credit) governing or providing for (a) the rights and
obligations of the parties concerned or at risk with respect to such Letter of
Credit or (b) any collateral security for any of such obligations, each as the
same may be modified and supplemented and in effect from time to time.
"LIBO Rate" means, with respect to any Eurodollar Borrowing for any
Interest Period, the rate appearing on Page 3750 of the Dow Xxxxx Markets
Service (or on any successor or substitute page of such Service, or any
successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to dollar deposits in the
London interbank market) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period. In the event that
such rate is not available at such time for any reason, then the LIBO Rate with
respect to such Eurodollar Borrowing for such Interest Period shall be the rate
at which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Administrative
Agent in immediately available funds in the London interbank market at
approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period. The Administrative Agent will furnish a
copy of such Page 3750 or other documentation evidencing the contents thereof to
the Borrower upon its request.
"License Subsidiaries" means (a) with respect to each Station that is an
Owned Station on the date hereof, the Subsidiary of the Borrower listed on
Schedule 1.03 as the holder
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of the Broadcast Licenses for such Owned Station and (b) with respect to any
Owned Station hereafter acquired by the Borrower or any of its Subsidiaries, the
Subsidiary of the Borrower formed, created, or acquired after the date hereof
that holds the Broadcast Licenses for such Owned Station, and in each case any
other Subsidiary into which any such License Subsidiary may be merged pursuant
to Section 7.03.
"Lien" means, with respect to any asset, (a) any mortgage, deed of trust,
lien, pledge, hypothecation, encumbrance, charge or security interest in, on or
of such asset, (b) the interest of a vendor or a lessor under any conditional
sale agreement, capital lease or title retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing)
relating to such asset and (c) in the case of securities, any purchase option,
call or similar right of a third party with respect to such securities.
"Loan Documents" means, collectively, this Agreement, the promissory notes
(if any) issued pursuant to Section 2.08(g), the Letter of Credit Documents, the
Guarantee Assumption Agreements (if any), each Consent and Agreement and the
Security Documents.
"Loans" means the loans made by the Lenders to the Borrower pursuant to
Section 2.01, and shall include Incremental Term Loans unless the context
otherwise requires.
"Margin Stock" means "margin stock" within the meaning of Regulations T, U
and X of the Board.
"Material Acquisition Documents" means with respect to any Approved
Acquisition or any Other Acquisition, the purchase agreement or similar
agreement or agreements pursuant to which such Acquisition is to be consummated
and all other related agreements and instruments in connection with such
Acquisition (together with any and all exhibits, annexes and schedules thereto),
but, in the case of any Other Acquisition, only to the extent the Borrower is
required to deliver copies of such agreements and instruments pursuant to
Section 7.04(f)(vii).
"Material Adverse Effect" means a material adverse effect on (a) the
business, assets, operations, prospects or condition, financial or otherwise, of
the Borrower and its Subsidiaries taken as a whole, (b) the ability of any
Obligor to perform any of its obligations under this Agreement or any of the
other Loan Documents to which it is a party or (c) the rights of or benefits
available to the Lenders under this Agreement or any of the other Loan
Documents.
"Material Third-Party Licensee" means any Person holding a Broadcast
License for one or more Contract Stations for which the Broadcast Cash Flow
attributable to such Stations, either individually or in the aggregate, for the
most recent twelve month period is equal to or greater than three percent of the
Broadcast Cash Flow for such period.
"Max Media Acquisition" means the acquisition of all of the equity
interests of Max Media Properties, LLC referred to in Schedule 7.04.
-19-
"Xxxxx'x" means Xxxxx'x Investors Services, Inc.
"Multiemployer Plan" means a multiemployer plan as defined in Section
4001(a)(3) of ERISA.
"Net Assets" means, with respect to any Subsidiary Guarantor as at any
date, an amount equal to the excess of the fair saleable value of the assets of
such Subsidiary Guarantor as at such date (without taking into account the
rights of such Subsidiary Guarantor under Section 3.08), and excluding the value
of the shares of stock owned by such Subsidiary Guarantor in any other
Subsidiary Guarantor party to this Agreement on such date over the amount that
would be required to pay the probable liabilities of such Subsidiary Guarantor
determined as at such date (excluding the obligations of such Subsidiary
Guarantor under Section 3) on all of its debts.
"Net Available Proceeds" means (a) in the case of any Disposition, an
amount (not less than zero) equal to the amount of Net Cash Payments received by
the Borrower and its Subsidiaries in connection with such Disposition and (b) in
the case of any Casualty Event, the aggregate amount of proceeds of insurance,
condemnation awards and other compensation received by the Borrower and its
Subsidiaries in respect of such Casualty Event net of (i) reasonable expenses
incurred by the Borrower and its Subsidiaries in connection therewith and (ii)
contractually required repayments of Indebtedness to the extent secured by a
Lien on the property to which such Casualty Event relates and any income and
transfer taxes payable by the Borrower any of its Subsidiaries in respect of
such Casualty Event.
"Net Cash Payments" means, with respect to any Disposition, the aggregate
amount of all cash payments (including, without limitation, all cash payments
received by way of deferred payment of principal pursuant to a note or
installment receivable or otherwise, but only as and when received) received by
the Borrower or its Subsidiaries directly or indirectly in connection with such
Disposition; provided that (a) Net Cash Payments shall be net of (i) the amount
of any legal, title and recording tax expenses, commissions and other fees and
expenses paid by the Borrower and its Subsidiaries in connection with such
Disposition and (ii) any Federal, state and local income or other taxes
estimated to be payable by the Borrower and its Subsidiaries as a result of such
Disposition (but only to the extent that such estimated taxes are in fact paid
to the relevant Governmental Authority not later than three months (in the case
of Federal taxes) or nine months (in the case of other taxes) after the date of
such Disposition) and (b) Net Cash Payments shall be net of any repayments by
the Borrower or any of its Subsidiaries of Indebtedness to the extent that (i)
such Indebtedness is secured by a Lien on the property that is the subject of
such Disposition and (ii) the transferee of (or holder of a Lien on) such
property requires that such Indebtedness be repaid as a condition to the
Disposition of such property.
"New HYTOPs Preferred Stock" means Preferred Stock issued by the Borrower
in connection with a New HYTOPs Transaction.
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"New HYTOPs Senior Debentures" means senior debentures issued by New HYTOPs
Sub in connection with a New HYTOPs Transaction.
"New HYTOPs Sub" means a Wholly Owned Subsidiary of the Borrower formed to
enter into a New HYTOPs Transaction.
"New HYTOPs Sub Licensee" means a direct, Wholly Owned Subsidiary of New
HYTOPs Sub that owns no property other than the Broadcast Licenses relating to a
Station that may be proposed by the Borrower and approved by the Required
Lenders in their sole discretion after the Effective Date.
"New HYTOPs Transaction" means a transaction entered into by the Borrower,
New HYTOPs Sub, the New HYTOPs Sub Licensee and the New HYTOPs Trust that is
structurally identical to the Existing HYTOPs Transaction in all material
respects.
"New HYTOPs Trust" means a special purpose statutory business trust formed
after the Effective Date under the laws of Delaware in connection with a New
HYTOPs Transaction, but only for as long as such trust owns no property other
than the New HYTOPs Senior Debentures and the proceeds thereof.
"1997 (December) Senior Subordinated Note Indenture" has the meaning
assigned to such term in the definition of "Existing Senior Subordinated
Indentures" in this Section.
"Norfolk Trust" means the trust known as the "Norfolk Trust" and created
and established pursuant to a certain Trust Agreement by and among the Borrower,
Xxxxxxxx Radio of Norfolk Licensee, Inc., Tuscaloosa Broadcasting, Inc. and the
trustee named therein.
"Obligor" means the Borrower and each Subsidiary Guarantor.
"Operating Subsidiary" has the meaning assigned to such term in Section
7.14(a).
"Other Acquisition" means (a) the acquisition by the Borrower or any of its
Subsidiaries in accordance with the terms hereof of substantially all of the
assets (including, without limitation, Broadcast Licenses) of (i) a television
or radio station in the United States in a single transaction (i.e., not by
means of the acquisition of an option for such assets and the subsequent
exercise of such option) or (ii) any business engaged in an activity permitted
under Section 7.06, (b) (i) the acquisition by the Borrower or any of its
Subsidiaries in accordance with the terms hereof of (x) substantially all of the
assets (other than Broadcast Licenses and other property required pursuant to
the rules and regulations of the FCC to be sold in connection with the transfer
of such Broadcast Licenses) of a television or radio station in the United
States and (y) an option to acquire the Broadcast Licenses and such other assets
of such television or radio station and (ii) the entering into by the Borrower
or any of its Subsidiaries of an agreement contemplated by clause (b) of the
definition of "Program Services Agreement" in this Section with respect to such
station, (c) the consummation of the acquisition of assets by the
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Borrower or any of its Subsidiaries pursuant to the exercise of an option
referred to in the preceding clause (b)(i)(y), together with the termination of
the related Program Services Agreement referred to in the preceding clause
(b)(ii), (d) the acquisition of assets or capital stock (or other equity
ownership interests) of any Person pursuant to an exchange permitted by Section
7.05(d) or (e), and (e) the Stainless Acquisition; provided that the term "Other
Acquisition" shall not include any Approved Acquisition. As used in this
definition, the acquisition of assets shall be deemed to include reference to
the acquisition of the voting capital stock (or other equity ownership interest)
of the Person that owns such assets and references to the acquisition and
exercise of an option to acquire assets shall be deemed to include the
acquisition and exercise of the option to acquire voting capital stock (or other
equity ownership interest) of the Person that owns such assets.
"Other Preferred Stock" means (a) Preferred Stock issued by the Borrower,
but if and only to the extent that (i) the dividend for each share thereof shall
not exceed 15% per annum of the liquidation preference of such share and (ii)
neither the Borrower nor any of its Subsidiaries may be required to repurchase,
redeem or make sinking fund payments with respect thereto at any time or under
any circumstances prior to September 15, 2006 and (b) New HYTOPs Preferred
Stock.
"Other Taxes" means any and all present or future stamp or documentary
taxes or any other excise or property taxes, charges or similar levies arising
from any payment made under any Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, any Loan Document.
"Owned Station" means (a) each television or radio station identified as
such in Schedule 1.03 and (b) any television or radio station the Broadcast
Licenses of which become owned by the Borrower or any of its Subsidiaries on or
after the date hereof.
"Passive BCF Percentage" means, as at any date, the ratio, expressed as a
percentage, obtained by dividing (a) the portion of Broadcast Cash Flow
attributable to all Passive Stations (including such Station) for the
twelve-month period ending on, or most recently ended prior to, such date by (b)
Broadcast Cash Flow for such period.
"Passive LMA" means a local marketing agreement, time brokerage agreement,
program services agreement or similar agreement providing for any Person other
than the Borrower or any of its Subsidiaries to program or sell advertising time
on all or any portion of the broadcast time of any Station.
"Passive Station" means a Station that is the subject of a Passive LMA.
"PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA and any successor entity performing similar functions.
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"Permitted Investments" means, for any Person:
(a) direct obligations of the United States of America, or of any agency
(which shall include, but not be limited to, Export-Import Bank of the United
States, Farmers Home Administration, Federal Housing Administration, General
Services Administration, and Government National Mortgage Association) or
instrumentality (which shall include, but not be limited to, The Federal
National Mortgage Association, Federal Home Loan Banks, Federal Home Loan
Mortgage Corporation, Federal Land Banks, Federal Intermediate Credit Banks,
Banks for Cooperative and the Farm Credit System, and The Student Loan
Marketing Association) thereof, or obligations guaranteed or insured as to
principal and interest by the United States of America, or any agency or
instrumentality thereof, in either case maturing not more than 90 days from
the date of acquisition thereof by such Person;
(b) domestic and Eurodollar time deposits, overnight deposits, certificates
of deposit and bankers acceptances issued or guaranteed by entities rated A-2
or better by S&P or P-2 or better by Xxxxx'x, maintained at or issued by any
office or branch of any bank or trust company organized or licensed under the
laws of the United States of America or any State thereof which bank or trust
company has capital, surplus and undivided profits of at least $500,000,000,
maturing not more than 90 days from the date of acquisition thereof by such
Person;
(c) commercial paper, auction rate notes and commercial paper master notes
issued or guaranteed by entities rated A-2 or better by S&P or P-2 or better
by Xxxxx'x, maturing not more than 90 days from the acquisition thereof by
such Person (provided that a security without its own rating will be
considered to be rated and to have the same rating as any debt obligation that
is issued by the same issuer which is comparable in priority, maturity and
security to the subject security or, if it is guaranteed by another issuer, to
be rated and to have the same rating as any debt obligation that is issued by
the guarantor which is comparable in priority, security, and maturity to the
subject security);
(d) tax-exempt commercial paper or variable rate tax exempt demand notes,
rated A-1 or better by S&P or MIG1/VMIG1 or better by Xxxxx'x, maturing not
more than 90 days from the acquisition thereof by such Person;
(e) repurchase agreements with a term of not more than 30 days entered into
with any bank qualifying under clause (b) above, any broker-dealer subsidiary
or affiliate of any such bank or any Primary Dealer of United States
Government securities and relating to:
(i) marketable direct obligations issued or unconditionally guaranteed
or insured by the United States of America or any agency or instrumentality
thereof listed in clause (a) above;
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(ii) securities issued by The Federal National Mortgage Association,
Federal Farm Credit Banks, Federal Home Loan Banks or The Student Loan
Marketing Association or other entities listed in clause (a) above; or
(iii)mortgage-backed securities issued by The Federal National
Mortgage Association or The Federal Home Loan Mortgage Corporation or
issued or guaranteed by the Government National Mortgage Association or
other entities listed in clause (a) above; and
(f) taxable or tax-exempt money market mutual funds which primarily invest
in any of the above.
"Permitted Termination Payments" has the meaning assigned to such term in
Section 7.16.
"Person" means any natural person, corporation, limited liability company,
trust, joint venture, association, company, partnership, Governmental Authority
or other entity.
"Plan" means any employee pension benefit plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which the Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA.
"Post-Default Condition" means (a) the failure by the Borrower to pay when
due (whether at stated maturity, by acceleration, by mandatory prepayment or
otherwise) any principal amount of any Loan or in respect of any LC Exposure,
(b) the failure by the Borrower to pay when due (whether at stated maturity, by
acceleration, by mandatory prepayment or otherwise) any other amount payable by
the Borrower hereunder for more than three Business Days or (c) the existence of
any other Event of Default.
"Post-Default Rate" means a rate per annum equal to the Post-Default Margin
(as defined below) plus the Alternate Base Rate as in effect from time to time
plus the Applicable Rate, provided that, as applied to principal of a Eurodollar
Loan, the "Post-Default Rate" shall be the Post-Default Margin plus the interest
rate for such Eurodollar Loan as provided in Section 2.11(b). For purposes of
this definition, the "Post-Default Margin" means 2% per annum or, if at the time
of determination the Borrower has failed to pay when due (whether at stated
maturity, by acceleration, by mandatory prepayment or otherwise) any principal
of or interest on any Loan payable by the Borrower hereunder and such failure
shall be continuing, 5% per annum.
"Preferred Stock" means, for any Person, any capital stock of any class or
classes (however designated) which is preferred as to the payment of dividends
or distributions, or as to the distribution of assets upon any voluntary or
involuntary liquidation or dissolution of such Person, over capital stock of any
other class of such Person.
-24-
"Prime Rate" means the rate of interest per annum publicly announced from
time to time by Chase as its prime rate in effect at its principal office in New
York City; each change in the Prime Rate shall be effective from and including
the date such change is publicly announced as being effective.
"Program Services Agreements" means (a) the agreements listed in Schedule
4.18 and (b) any agreement having a term of not less than five years with an
option to extend such term for an additional five years entered into by the
Borrower or any of its Subsidiaries (other than License Subsidiaries) in
accordance with Section 7.16 relating to a Contract Station, pursuant to which
agreement the Borrower or any of its Subsidiaries (other than License
Subsidiaries) will obtain the right to program and sell advertising on a
substantial portion of such Contract Station's inventory of broadcast time.
"PSA Counterparty" means Glencairn, Montecito Broadcasting Corporation,
River City Broadcasting, L.P., WPTT, Inc. or any other Person acceptable to the
Administrative Agent.
"Quarterly Dates" means the last Business Day of March, June, September and
December in each year, the first of which shall be the first such day after the
date hereof.
"Receivables" shall mean, as at any date, the unpaid portion of the
obligation, as stated on the respective billing statement, of a customer of the
Borrower or any Subsidiary Guarantor in respect of the sale of advertising time
or other services provided or goods sold by the Borrower or any Subsidiary
Guarantor, as the case may be, to such customer.
"Receivables and Related Assets" shall mean Receivables and any
instruments, documents, chattel paper, obligations, general intangibles and
other similar assets, in each case, relating to such Receivables.
"Receivables Subsidiary" shall mean a Wholly Owned Subsidiary of the
Borrower established for the limited purpose of acquiring and financing
Receivables and Related Assets pursuant to any Receivables Financing.
"Receivables Financing" shall mean the sale of Receivables and Related
Assets on terms and pursuant to documentation satisfactory in form and substance
to the Administrative Agent.
"Register" has the meaning set forth in Section 10.04.
"Related Parties" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, trustees, officers, employees,
agents and advisors of such Person and such Person's Affiliates.
-25-
"Relevant Corporation" has the meaning assigned to such term in Section
5.01(d)(i).
"Required Lenders" means, at any time, subject to the last paragraph of
Section 10.02(b), Lenders having Revolving Exposures, outstanding Term Loans,
outstanding Incremental Term Loans and unused Commitments representing at least
51% of the sum of the total Revolving Exposures, outstanding Term Loans,
outstanding Incremental Term Loans and unused Commitments at such time. The
"Required Lenders" of a particular Class of Loans means Lenders having Revolving
Exposures, outstanding Term Loans, outstanding Incremental Term Loans and unused
Commitments of such Class representing at least 51% of the total Revolving
Exposures, outstanding Term Loans, outstanding Incremental Term Loans and unused
Commitments of such Class at such time (e.g., "Required Revolving Lenders"
means, at any time, the Revolving Lenders having Revolving Exposures and unused
Revolving Commitments representing at least 51% of the total Revolving Exposures
and total unused Revolving Commitments at such time).
"Restricted Payment" means any dividend or other distribution (whether in
cash, securities or other property but excluding dividends payable solely in
additional shares of common stock of the Borrower) with respect to any shares of
any class of capital stock of the Borrower or any of its Subsidiaries, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such shares of capital stock of
the Borrower or any option, warrant or other right to acquire any such shares of
capital stock of the Borrower.
"Revolving Availability Period" means the period from and including the
Effective Date to but excluding the earlier of the Revolving Maturity Date and
the date of termination of the Revolving Commitments.
"Revolving Commitment" means, with respect to each Lender, the commitment,
if any, of such Lender to make Revolving Loans and to acquire participations in
Letters of Credit hereunder, expressed as an amount representing the maximum
aggregate amount of such Lender's Revolving Exposure hereunder, as such
commitment may be (a) reduced from time to time pursuant to Section 2.07 or
2.09(b) and (b) reduced or increased from time to time pursuant to assignments
by or to such Lender pursuant to Section 10.04. The initial amount of each
Lender's Revolving Commitment is set forth on Schedule 1.01 or in the Assignment
and Acceptance pursuant to which such Lender shall have assumed its Revolving
Commitment, as applicable. The initial aggregate amount of the Lenders'
Revolving Commitments is $1,000,000,000.
"Revolving Commitment Reduction Dates" means (a) the Quarterly Dates
falling on or nearest to March 31, June 30, September 30 and December 31 of each
year, commencing with March 31, 2001, through and including June 30, 2005 and
(b) the Business Day falling on or nearest to September 15, 2005.
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"Revolving Exposure" means, with respect to any Lender at any time, the sum
of the outstanding principal amount of such Lender's Revolving Loans and its LC
Exposure at such time.
"Revolving Lender" means a Lender with a Revolving Commitment or, if the
Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.
"Revolving Loan" means a Loan made pursuant to clause (a) of Section 2.01.
"Revolving Maturity Date" means the Business Day falling on or nearest to
September 15, 2005.
"River City" means River City Broadcasting, L.P., a Delaware limited
partnership.
"River City Acquisition" means the acquisition of certain televisions
properties of River City referred to in Schedule 7.04.
"S&P" means Standard & Poor's Ratings Group, a division of The XxXxxx-Xxxx
Companies, Inc.
"Security Agreement" means a Security Agreement substantially in the form
of Exhibit A between the Borrower, the Subsidiary Guarantors and the
Administrative Agent.
"Security Documents" means, collectively, the Security Agreement and all
Uniform Commercial Code financing statements required by the Security Agreement
to be filed with respect to the security interests in personal property created
pursuant thereto.
"Senior Indebtedness" means Total Indebtedness other than Subordinated
Indebtedness.
"Senior Indebtedness Ratio" means, as at any date, the ratio of (a) Senior
Indebtedness outstanding on such date to (b) EBITDA for the period of twelve
consecutive full calendar months ending on or most recently ended prior to such
date.
"Senior Subordinated Note Indentures" means the Existing Senior
Subordinated Note Indentures and, after the respective issuances of the
Additional Senior Subordinated Notes and the Converted Senior Subordinated
Notes, the respective indentures under which the same are issued.
"Xxxxxxxx Capital" means Xxxxxxxx Capital, a special purpose statutory
business trust formed under the laws of Delaware in connection with the Existing
HYTOPs Transaction, but only for as long as Xxxxxxxx Capital owns no property
other than the KDSM Senior Debentures and the proceeds thereof.
-27-
"Xxxxx Brothers" means Xxxxxxxxx X. Xxxxx, Xxxxx X. Xxxxx, J. Xxxxxx Xxxxx
and Xxxxxx X. Xxxxx.
"Stainless Acquisition" means the acquisition of all of the issued and
outstanding stock of Stainless, Inc. from Northwest Broadcasting, L.P. and all
or substantially all of the property used in the business operations of
Stainless, Inc. owned by Stainless Enterprises of Pennsylvania, Inc., which
shall be treated as an Other Acquisition for purposes of this Agreement.
"Stations" means the Owned Stations and the Contract Stations.
"Statutory Reserve Rate" means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which is the number
one minus the aggregate of the maximum reserve percentages (including any
marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.
"Subordinated Debt Documents" means the agreements and instruments
evidencing or providing for Subordinated Indebtedness.
"Subordinated Film Indebtedness" means Film Obligations of the Borrower and
its Subsidiaries which are subordinated to the obligations of the Borrower and
its Subsidiaries hereunder on terms and conditions, and the other provisions of
which are, satisfactory to the Administrative Agent.
"Subordinated Indebtedness" means (a) the Existing Senior Subordinated
Indebtedness, (b) Subordinated Film Indebtedness, (c) after the respective
issuances thereof, Indebtedness evidenced by the Additional Senior Subordinated
Notes and the Converted Senior Subordinated Notes and (d) from and after the
consummation of the Xxxxxxxx Acquisition, the Xxxxxxxx Senior Notes to the
extent permitted to remain outstanding under Section 7.01(l)(ii).
"Subsidiary" means, with respect to any Person (the "parent") at any date,
any corporation, limited liability company, partnership, association or other
entity the accounts of which would be consolidated with those of the parent in
the parent's consolidated financial statements if such financial statements were
prepared in accordance with GAAP as of such date, as well as any other
corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50%
of the equity or more than 50% of the ordinary voting power or, in the case of a
partnership, more than 50% of the general partnership interests are, as of such
date, owned, controlled or held, or
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(b) that is, as of such date, otherwise Controlled, by the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the
parent. Unless otherwise specified, "Subsidiary" means a Subsidiary of the
Borrower. "Wholly Owned Subsidiary" means any such corporation, partnership or
other entity of which all of such securities or other ownership interests (other
than, in the case of a corporation, directors' qualifying shares) are so owned
or controlled. Notwithstanding anything contained herein to the contrary, no
Unrestricted Subsidiary shall be deemed to be a Subsidiary of the Borrower or of
a Subsidiary of the Borrower for the purpose of this Agreement except as
otherwise expressly provided herein.
"Subsidiary Guarantor" means each of the Subsidiaries of the Borrower
identified under the caption "SUBSIDIARY GUARANTORS" on the signature pages
hereto and each Subsidiary of the Borrower that becomes a "Subsidiary Guarantor"
after the date hereof pursuant to Section 6.10(a). No Excluded Subsidiary will
be required to be a Subsidiary Guarantor.
"Xxxxxxxx Acquisition" means the acquisition of all of the capital stock of
Xxxxxxxx Broadcast Holdings, Inc. and Xxxxxxxx Broadcasting Company II, Inc.
referred to in Schedule 7.04.
"Xxxxxxxx Senior Notes" means (a) the $35,000,000 13-1/4% Senior Accrued
Debentures Due 2006 issued by A-3 Holdings, Inc., (b) the $125,000,000 10-1/4%
Senior Subordinated Notes Due 2005 issued by A-3 Acquisition, Inc and (c) the
$100,000,000 9-5/8% Senior Subordinated Notes Due 2003 issued by ACT III
Broadcasting, Inc.
"Taxes" means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.
"Term Loan" means a Loan made pursuant to clause (b) of Section 2.01.
"Term Loan Commitment" means, with respect to each Lender, the commitment,
if any, of such Lender to make a Term Loan hereunder on the Effective Date,
expressed as an amount representing the maximum principal amount of the Term
Loan to be made by such Lender hereunder, as such commitment may be (a) reduced
from time to time pursuant to Section 2.07 or 2.09(b) and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 10.04. The initial amount of each Lender's Term Loan
Commitment is set forth on Schedule 1.01 or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Term Loan Commitment, as
applicable. The initial aggregate amount of the Lenders' Term Loan Commitment is
$750,000,000.
"Term Loan Lender" means a Lender with a Term Loan Commitment or an
outstanding Term Loan.
"Term Loan Maturity Date" means the Business Day falling on or nearest to
September 15, 2005.
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"Term Loan Principal Payment Dates" means (a) the Quarterly Dates falling
on or nearest to March 31, June 30, September 30 and December 31 of each year,
commencing with March 31, 1999, through and including June 30, 2005 and (b) the
Term Loan Maturity Date.
"Total Indebtedness" means, as at any date, all Indebtedness on such date
of the Borrower and its Subsidiaries (determined on a consolidated basis without
duplication in accordance with GAAP).
"Total Indebtedness Ratio" means, as at any date, the ratio of (a) Total
Indebtedness outstanding on such date to (b) EBITDA for the period of twelve
consecutive full calendar months ending on or most recently ended prior to such
date.
"Transactions" means the execution, delivery and performance by each
Obligor of this Agreement and the other Loan Documents to which such Obligor is
intended to be a party, the borrowing of Loans, the use of the proceeds thereof
and the issuance of Letters of Credit hereunder.
"Type", when used in reference to any Loan or Borrowing, refers to whether
the rate of interest on such Loan, or on the Loans comprising such Borrowing, is
determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate.
"Unrestricted Subsidiary" means (a) any Subsidiary of the Borrower that at
the time of determination shall be an Unrestricted Subsidiary (as designated by
the board of directors of the Borrower, as provided below) and (b) any
Subsidiary of an Unrestricted Subsidiary. The Board of Directors of the Borrower
may designate any Subsidiary of the Borrower (including any newly acquired or
newly formed Subsidiary) to be an Unrestricted Subsidiary if all of the
following conditions apply: (i) such Subsidiary is not liable, directly or
indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary
Indebtedness; (ii) any Investment in such Subsidiary made as a result of
designating such Subsidiary an Unrestricted Subsidiary shall not violate the
provisions of Section 7.07; (iii) any designation of a Subsidiary as an
Unrestricted Subsidiary shall be treated as a Disposition of the assets of such
Subsidiary and shall not violate the provisions of Section 7.05(d), (e) or (h)
or Section 7.09 and (iv) after giving pro forma effect to the designation of any
Subsidiary as an Unrestricted Subsidiary, the Broadcast Cash Flow attributable
to all assets of the Unrestricted Subsidiaries for the twelve-month period
ending on, or most recently ended prior to, the date of such designation shall
not exceed 25% of the Broadcast Cash Flow for the Borrower and its Subsidiaries
(including the Unrestricted Subsidiaries) for such period. Any such designation
by the board of directors of the Borrower shall be evidenced to the
Administrative Agent by filing with the Administrative Agent a board resolution
giving effect to such designation and an officers' certificate certifying that
such designation complies with the foregoing conditions. The board of directors
of the Borrower may remove the designation of Unrestricted Subsidiary by giving
notice thereof to the Administrative Agent; provided that immediately after
giving effect to the removal of such designation (x) no Default shall have
occurred or be continuing and (y) said removal of such designation shall not
violate the provisions of Section 7.04. As of the date hereof, the following are
Unrestricted Subsidiaries: (i) KDSM, (ii) Xxxxxxxx Capital and (iii) if
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and for so long as KDSM is a Designated HYTOPs Subsidiary, KDSM Licensee;
provided that if KDSM shall no longer constitute a Designated HYTOPs Subsidiary,
each of KDSM and KDSM Licensee shall cease to be Unrestricted Subsidiaries until
such time (if ever) as they shall be redesignated Unrestricted Subsidiaries in
compliance with requirements hereof.
"Unrestricted Subsidiary Indebtedness" of any Unrestricted Subsidiary means
Indebtedness of such Unrestricted Subsidiary (i) as to which neither the
Borrower nor any Subsidiary other than an Unrestricted Subsidiary is directly or
indirectly liable (by virtue of the Borrower or any such Subsidiary being the
primary obligor on, guarantor of, or otherwise liable in any respect to, such
Indebtedness), except Guaranteed Debt of the Borrower or any Subsidiary other
than an Unrestricted Subsidiary to any Affiliate (as otherwise permitted
hereunder) and (ii) which, upon the occurrence of a default with respect
thereto, does not result in, or permit any holder of any Indebtedness of the
Borrower or any Subsidiary other than an Unrestricted Subsidiary to declare, a
default on such Indebtedness of the Borrower or any Subsidiary other than an
Unrestricted Subsidiary or cause the payment thereof to be accelerated or
payable prior to its stated maturity.
"WDBB" means WDBB-TV, Inc., an Alabama corporation.
"WDBB Options" means (a) the option granted by Xxxxx Xxxxxx to the Borrower
to acquire 50% of the issued and outstanding stock of H and P Communications,
Inc., a Nevada corporation ("H&P") that on the date hereof owns 90% of the
issued and outstanding stock of WDBB, (b) the option granted by Xxxx Xxxxxx to
the Borrower to acquire 50% of the issued and outstanding stock of H&P and (c)
the option granted by D&C, L.L.C. to the Borrower to acquire 10% of the issued
and outstanding stock of WDBB.
"Withdrawal Liability" means liability to a Multiemployer Plan as a result
of a complete or partial withdrawal from such Multiemployer Plan, as such terms
are defined in Part I of Subtitle E of Title IV of ERISA.
"Working Investment" means, as at any date of determination thereof and for
any Person, the excess of (a) the unpaid face amount of all accounts receivable
of such Person as at such date over (b) the sum (determined without duplication)
of (i) the unpaid amount of all accounts payable of such Person at such date
plus (ii) all accrued expenses of such Person at such date (but excluding from
accounts payable and accrued expenses, the current portion of long-term debt and
of Film Obligations as well as all accrued interest and taxes).
"WPTT Conversion Option" means the Option Agreement dated as of August 30,
1991 between WPTT Inc., a Maryland corporation, and the Borrower (as successor
by merger to Commercial Radio Institute, Inc.).
"WPTT Convertible Debenture" means the 20-Year 8.5% Convertible Subordinate
Debenture Due 2011 dated August 30, 1991, payable by WPTT, Inc. to the Borrower
(as successor by merger to Commercial Radio Institute, Inc.) in the original
principal amount of $1,000,000.
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SECTION 1.02. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified and referred to by Class (e.g., a "Revolving
Loan", a "Term Loan" or an "Incremental Term Loan") or by Type (e.g., a
"Eurodollar Loan") or by Class and Type (e.g., an "ABR Revolving Loan").
Borrowings also may be classified and referred to by Class (e.g., a "Revolving
Borrowing") or by Type (e.g., a "Eurodollar Borrowing") or by Class and Type
(e.g., an "ABR Revolving Borrowing".
SECTION 1.03. Call Letters for Stations. Each use of call letters for any
Station herein shall refer to the Station with such call letters, and servicing
the market, identified in Schedule 1.03.
SECTION 1.04. Terms Generally. The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words "include", "includes" and "including" shall
be deemed to be followed by the phrase "without limitation". The word "will"
shall be construed to have the same meaning and effect as the word "shall".
Unless the context requires otherwise (a) any definition of or reference to any
agreement, instrument or other document herein shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (e) the words
"asset" and "property" shall be construed to have the same meaning and effect
and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.
SECTION 1.05. Accounting Terms; GAAP.
(a) Except as otherwise expressly provided herein, all accounting terms
used herein shall be interpreted, and all financial statements and certificates
and reports as to financial matters required to be delivered to the Lenders
hereunder shall (unless otherwise disclosed to the Lenders in writing at the
time of delivery thereof in the manner described in paragraph (b) of this
Section) be prepared, in accordance with generally accepted accounting
principles applied on a basis consistent with that used in the preparation of
the latest financial statements furnished to the Lenders hereunder (which, prior
to the first financial statements delivered under Section 6.01, shall mean the
financial statements referred to in Section 4.04). All calculations made for the
purposes of determining compliance with the terms of this Agreement shall
(except as otherwise expressly provided herein) be made by application of
generally accepted accounting principles applied on a basis consistent with that
used in the preparation of the annual or quarterly financial statements
furnished to the Lenders pursuant to Section 6.01 (or, prior to the first
financial statements delivered under Section 6.01, used in the preparation of
the financial statements
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referred to in Section 4.04) unless (i) the Borrower shall have objected to
determining such compliance on such basis at the time of delivery of such
financial statements or (ii) the Required Lenders shall so object in writing
within 30 days after delivery of such financial statements, in either of which
events such calculations shall be made on a basis consistent with those used in
the preparation of the latest financial statements as to which such objection
shall not have been made (which, if objection is made in respect of the first
financial statements delivered under Section 6.01, shall mean the financial
statements referred to in Section 4.04). Notwithstanding anything in this
Section to the contrary, all income derived by any Subsidiary or property held
for sale (and accounted for as such under GAAP) shall be included in calculating
EBITDA for the period prior to the consummation of the sale thereof.
(b) The Borrower shall deliver to the Lenders at the same time as the
delivery of any annual or quarterly financial statement under Section 6.01 a
description in reasonable detail of any material variation between the
application of accounting principles employed in the preparation of such
statement and the application of accounting principles employed in the
preparation of the next preceding annual or quarterly financial statements as to
which no objection has been made in accordance with the last sentence of
paragraph (a) of this Section, and reasonable estimates of the difference
between such statements arising as a consequence thereof.
(c) To enable the ready and consistent determination of compliance with the
covenants set forth in Article VII, the Borrower will not change the last day of
its fiscal year from December 31 of each year, or the last days of the first
three fiscal quarters in each of its fiscal years from March 31, June 30 and
September 30 of each year, respectively.
(d) Except as expressly provided herein, (i) all calculations made with
respect to any period during which an Acquisition is consummated shall be
calculated on a pro forma basis as if such Acquisition had been consummated on
the first day of such period and as if any Indebtedness incurred or assumed in
connection with such Acquisition were outstanding throughout such period, using
such reasonable estimates and pro forma adjustments effected in accordance with
generally accepted accounting principles as the Borrower shall propose and the
Administrative Agent or Required Lenders shall approve and (ii) all calculations
made with respect to any period during which a Disposition is consummated shall
be calculated on a pro forma basis as if any such Disposition had been
consummated on the first day of such period and as if any prepayments and
reductions of Commitments actually made in connection therewith had occurred on
the first day of such period using such reasonable estimates and pro forma
adjustments effected in accordance with generally accepted accounting principles
as the Borrower shall propose and the Administrative Agent shall approve; except
that if the Borrower proposes any such adjustments referred to in the foregoing
clause (i) resulting from pro forma expense savings with respect to EBITDA or
Broadcast Cash Flow as a result of an Acquisition (x) if the Administrative
Agent or Required Lenders do not object to such proposal within 30 days after
their receipt thereof, such proposal shall be deemed accepted and (y) if the
Administrative Agent or the Required Lenders do object to such proposal within
30 days after their receipt thereof, EBITDA or Broadcast Cash Flow, as the case
may be, for the relevant period shall be deemed for purposes hereof to be equal
to the sum of EBITDA or Broadcast Cash
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Flow, as the case may be, for the Borrower and its Subsidiaries for such period
plus the corresponding accounting items for the Person or assets that are the
subject of such Acquisition. Notwithstanding the foregoing, if, prior to giving
effect to any proposed pro forma adjustments arising from pro forma expense
savings, a Default would occur as a result of an Acquisition, such adjustment
shall require approval of the Required Lenders prior to the consummation of such
Acquisition.
(e) Except as otherwise expressly provided herein, all financial statements
and certificates and reports as to financial matters required to be delivered to
the Administrative Agent or the Lenders hereunder shall be prepared, and all
calculations made for purposes of determining compliance with the terms hereof
shall be made, as if (i) the Designated HYTOPs Subsidiaries, (ii) Xxxxxxxx
Capital, (iii) the New HYTOPs Trust, (iv) if and for so long as KDSM is a
Designated HYTOPs Subsidiary, KDSM Licensee and (v) if and for so long as New
HYTOPs Sub is a Designated HYTOPs Subsidiary, New HYTOPs Sub Licensee the
"HYTOPs Subsidiaries" were carried as equity investments by the Borrower or the
relevant Subsidiary of the Borrower; provided that any amounts received by the
Borrower or any of its Subsidiaries from the Designated HYTOPs Subsidiaries
during any period shall be deemed to reduce Interest Expense for such period.
ARTICLE II
THE CREDITS
SECTION 2.01. The Credits
(a) Revolving Loans. Subject to the terms and conditions set forth herein,
each Lender agrees to make Revolving Loans to the Borrower from time to time
during the Revolving Availability Period in an aggregate principal amount that
will not result in (i) such Lender's Revolving Exposure exceeding such Lender's
Revolving Commitment or (ii) the total Revolving Exposures exceeding the total
Revolving Commitments. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.
(b) Term Loans. Subject to the terms and conditions set forth herein, each
Lender agrees to make one or more Term Loans to the Borrower on the Effective
Date in a principal amount equal to its Term Loan Commitment. Amounts repaid in
respect of Term Loans may not be reborrowed.
(c) Incremental Loans. The Borrower and one or more the Lenders may, with
the consent of the Administrative Agent, at any time during the period from and
including the Effective Date to but excluding the Incremental Term Loan
Commitment Termination Date agree that such Lender shall become an Incremental
Term Lender by executing and delivering to the Administrative Agent an
Incremental Term Loan Activation Notice specifying the respective Incremental
Term Loan Commitment of such Lenders, the Incremental Term Loan Activation
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Date, the rate of commitment fee, if any, payable by the Borrower in respect of
such Incremental Term Loan Commitment, the Applicable Rate that will apply to
Incremental Term Loans made under such Incremental Term Loan Commitment, the
period of availability of such Incremental Term Loan Commitment (which shall in
no event end later than the Incremental Term Loan Commitment Termination Date),
and otherwise duly completed. Subject to the terms and conditions set forth
herein, each Incremental Term Loan Lender agrees to make one or more Incremental
Term Loans to the Borrower during the period from and including the Incremental
Term Loan Activation Date to but excluding the last day of the relevant
availability period for such Incremental Term Loan Commitment in an aggregate
principal amount up to but not exceeding the amount of such Incremental Term
Loan Commitment. Nothing in this Agreement shall be construed to obligate any
Lender to provide any Incremental Term Loan Commitment.
SECTION 2.02. Loans and Borrowings.
(a) Obligations of Lenders. Each Loan shall be made as part of a Borrowing
consisting of Loans of the same Class and Type made by the Lenders ratably in
accordance with their respective Commitments of the applicable Class. The
failure of any Lender to make any Loan required to be made by it shall not
relieve any other Lender of its obligations hereunder; provided that the
Commitments of the Lenders are several and no Lender shall be responsible for
any other Lender's failure to make Loans as required.
(b) Type of Loans. Subject to Section 2.12, each Borrowing shall be
comprised entirely of ABR Loans or Eurodollar Loans as the Borrower may request
in accordance herewith. Each Lender at its option may make any Eurodollar Loan
by causing any domestic or foreign branch or Affiliate of such Lender to make
such Loan; provided that any exercise of such option shall not affect the
obligation of the Borrower to repay such Loan in accordance with the terms of
this Agreement.
(c) Minimum Amounts; Limitation on Number of Borrowings. At the
commencement of each Interest Period for any Eurodollar Borrowing, such
Borrowing shall be in an aggregate amount of $1,000,000 or a larger multiple of
$100,000. At the time that each ABR Borrowing is made, such Borrowing shall be
in an aggregate amount equal to $1,000,000 or a larger multiple of $100,000;
provided that an ABR Borrowing may be in an aggregate amount that is equal to
the entire unused balance of the total Commitments of the applicable Class or
that is required to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.04(f). Borrowings of more than one Type and Class may
be outstanding at the same time; provided that there shall not at any time be
more than a total of ten Eurodollar Borrowings outstanding.
SECTION 2.03. Requests for Borrowings. To request a Borrowing, the Borrower
shall notify the Administrative Agent of such request by telephone (a) in the
case of a Eurodollar Borrowing, not later than 10:00 a.m., New York City time,
three Business Days before the date of the proposed Borrowing or (b) in the case
of an ABR Borrowing, not later than 10:00 a.m., New York City time, one Business
Day before the date of the proposed Borrowing.
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Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Borrowing Request in a form approved by the Administrative Agent and
signed by the Borrower. Each such telephonic and written Borrowing Request shall
specify the following information in compliance with Section 2.02:
(i) whether the requested Borrowing is to be a Revolving Borrowing or
Term Borrowing;
(ii) the aggregate amount of the requested Borrowing;
(iii) the date of such Borrowing, which shall be a Business Day;
(iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing;
(v) in the case of a Eurodollar Borrowing, the initial Interest Period
to be applicable thereto, which shall be a period contemplated by the
definition of the term "Interest Period"; and
(vi) the location and number of the Borrower's account to which funds
are to be disbursed, which shall comply with the requirements of Section
2.05.
If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested Eurodollar Borrowing, then the Borrower shall be deemed
to have selected an Interest Period of one month's duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.
SECTION 2.04. Letters of Credit.
(a) General. Subject to the terms and conditions set forth herein, in
addition to the Loans provided for in Section 2.01, the Borrower may request the
Issuing Lender to issue, at any time and from time to time during the Revolving
Availability Period, Letters of Credit for its own account in such form as is
acceptable to the Issuing Lender in its reasonable determination. Letters of
Credit issued hereunder shall constitute utilization of the Revolving
Commitments.
(b) Notice of Issuance, Amendment, Renewal or Extension. To request the
issuance of a Letter of Credit (or the amendment, renewal or extension of an
outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or
transmit by electronic communication, if arrangements for doing so have been
approved by the Issuing Lender) to the Issuing Lender and the Administrative
Agent (reasonably in advance of the requested date of issuance, amendment,
renewal or extension) a notice requesting the issuance of a Letter of Credit, or
identifying the Letter of Credit to be amended, renewed or extended, and
specifying the date of
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issuance, amendment, renewal or extension (which shall be a Business Day), the
date on which such Letter of Credit is to expire (which shall comply with
paragraph (d) of this Section), the amount of such Letter of Credit, the name
and address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. If requested
by the Issuing Lender, the Borrower also shall submit a letter of credit
application on the Issuing Lender's standard form in connection with any request
for a Letter of Credit. In the event of any inconsistency between the terms and
conditions of this Agreement and the terms and conditions of any form of letter
of credit application or other agreement submitted by the Borrower to, or
entered into by the Borrower with, the Issuing Lender relating to any Letter of
Credit, the terms and conditions of this Agreement shall control.
(c) Limitations on Amounts. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i)
the aggregate LC Exposure of the Issuing Lender (determined for these purposes
without giving effect to the participations therein of the Revolving Lenders
pursuant to paragraph (e) of this Section) shall not exceed $350,000,000 and
(ii) the total Revolving Exposures shall not exceed the total Revolving
Commitments.
(d) Expiration Date. Each Letter of Credit shall expire at or prior to the
close of business on the earlier of (i) the date twelve months after the date of
the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, twelve months after the then-current expiration date of such
Letter of Credit, so long as such renewal or extension occurs within three
months of such then-current expiration date) and (ii) the date that is five
Business Days prior to the Revolving Maturity Date.
(e) Participations. By the issuance of a Letter of Credit (or an amendment
to a Letter of Credit increasing the amount thereof) by the Issuing Lender, and
without any further action on the part of the Issuing Lender or the Lenders, the
Issuing Lender hereby grants to each Lender, and each Lender hereby acquires
from the Issuing Lender, a participation in such Letter of Credit equal to such
Lender's Applicable Percentage of the aggregate amount available to be drawn
under such Letter of Credit. Each Lender acknowledges and agrees that its
obligation to acquire participations pursuant to this paragraph in respect of
Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit on the terms provided herein or the occurrence and continuance
of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.
In consideration and in furtherance of the foregoing, each Lender hereby
absolutely and unconditionally agrees to pay to the Administrative Agent, for
the account of the Issuing Lender, such Lender's Applicable Percentage of each
LC Disbursement made by the Issuing Lender promptly upon the request of the
Issuing Lender at any time from the time of such LC Disbursement until such LC
Disbursement is reimbursed by the Borrower or at any time after any
reimbursement payment is required to be refunded to the Borrower for any reason.
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Each such payment shall be made in the same manner as provided in Section 2.08
with respect to Loans made by such Lender (and Section 2.08 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative
Agent shall promptly pay to the Issuing Lender the amounts so received by it
from the Lenders. Promptly following receipt by the Administrative Agent of any
payment from the Borrower pursuant to the next following paragraph, the
Administrative Agent shall distribute such payment to the Issuing Lender or, to
the extent that the Lenders have made payments pursuant to this paragraph to
reimburse the Issuing Lender, then to such Lenders and the Issuing Lender as
their interests may appear. Any payment made by a Lender pursuant to this
paragraph to reimburse the Issuing Lender for any LC Disbursement shall not
constitute a Loan and shall not relieve the Borrower of its obligation to
reimburse such LC Disbursement.
(f) Reimbursement. If the Issuing Lender shall make any LC Disbursement in
respect of a Letter of Credit, the Borrower shall reimburse the Issuing Lender
in respect of such LC Disbursement by paying to the Administrative Agent an
amount equal to such LC Disbursement not later than 1:00 p.m., New York City
time, on (i) the Business Day that the Borrower receives notice of such LC
Disbursement, if such notice is received prior to 10:00 a.m., New York City
time, or (ii) the Business Day immediately following the day that the Borrower
receives such notice, if such notice is not received prior to such time,
provided that, if such LC Disbursement is not less than $1,000,000, the Borrower
may, subject to the conditions to borrowing set forth herein, request in
accordance with Section 2.03 that such payment be financed with an ABR Revolving
Borrowing in an equivalent amount and, to the extent so financed, the Borrower's
obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing.
If the Borrower fails to make such payment when due, the Administrative
Agent shall notify each Revolving Lender of the applicable LC Disbursement, the
payment then due from the Borrower in respect thereof and such Lender's
Applicable Percentage thereof.
(g) Obligations Absolute. The Borrower's obligation to reimburse LC
Disbursements as provided in paragraph (f) of this Section shall be absolute,
unconditional and irrevocable, and shall be performed strictly in accordance
with the terms of this Agreement under any and all circumstances whatsoever and
irrespective of (i) any lack of validity or enforceability of any Letter of
Credit, or any term or provision therein, (ii) any draft or other document
presented under a Letter of Credit proving to be forged, fraudulent or invalid
in any respect or any statement therein being untrue or inaccurate in any
respect, (iii) payment by the Issuing Lender under a Letter of Credit against
presentation of a draft or other document that does not comply strictly with the
terms of such Letter of Credit, and (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for
the provisions of this Section, constitute a legal or equitable discharge of the
Borrower's obligations hereunder.
Neither the Administrative Agent, the Lenders nor the Issuing Lender, nor
any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit
by the Issuing Lender or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the
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preceding sentence), or any error, omission, interruption, loss or delay in
transmission or delivery of any draft, notice or other communication under or
relating to any Letter of Credit (including any document required to make a
drawing thereunder), any error in interpretation of technical terms or any
consequence arising from causes beyond the control of the Issuing Lender;
provided that the foregoing shall not be construed to excuse the Issuing Lender
from liability to the Borrower to the extent of any direct damages (as opposed
to consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Lender's gross negligence or willful misconduct
when determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that:
(i) the Issuing Lender may accept documents that appear on their face
to be in substantial compliance with the terms of a Letter of Credit
without responsibility for further investigation, regardless of any notice
or information to the contrary, and may make payment upon presentation of
documents that appear on their face to be in substantial compliance with
the terms of such Letter of Credit;
(ii) the Issuing Lender shall have the right, in its sole discretion,
to decline to accept such documents and to make such payment if such
documents are not in strict compliance with the terms of such Letter of
Credit; and
(iii) this sentence shall establish the standard of care to be
exercised by the Issuing Lender when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof
(and the parties hereto hereby waive, to the extent permitted by applicable
law, any standard of care inconsistent with the foregoing).
(h) Disbursement Procedures. The Issuing Lender shall, within a reasonable
time following its receipt thereof, examine all documents purporting to
represent a demand for payment under a Letter of Credit. The Issuing Lender
shall promptly after such examination notify the Administrative Agent and the
Borrower by telephone (confirmed by telecopy) of such demand for payment and
whether the Issuing Lender has made or will make an LC Disbursement thereunder;
provided that any failure to give or delay in giving such notice shall not
relieve the Borrower of its obligation to reimburse the Issuing Lender and the
Lenders with respect to any such LC Disbursement.
(i) Interim Interest. If the Issuing Lender shall make any LC Disbursement,
then, unless the Borrower shall reimburse such LC Disbursement in full on the
date such LC Disbursement is made, the unpaid amount thereof shall bear
interest, for each day from and including the date such LC Disbursement is made
to but excluding the date that the Borrower reimburses such LC Disbursement, at
the rate per annum then applicable to ABR Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (f) of
this Section, then Section 2.11(c) shall apply. Interest accrued pursuant to
this paragraph shall be for the account of the Issuing Lender, except that
interest accrued on and after
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the date of payment by any Lender pursuant to paragraph (f) of this Section to
reimburse the Issuing Lender shall be for the account of such Lender to the
extent of such payment.
(j) Replacement of the Issuing Lender. The Issuing Lender may be replaced
at any time by written agreement among the Borrower, the Administrative Agent,
the replaced Issuing Lender and the successor Issuing Lender. The Administrative
Agent shall notify the Lenders of any such replacement of the Issuing Lender. At
the time any such replacement shall become effective, the Borrower shall pay all
unpaid fees accrued for the account of the replaced Issuing Lender pursuant to
Section 2.10(b). From and after the effective date of any such replacement, (i)
the successor Issuing Lender shall have all the rights and obligations of the
replaced Issuing Lender under this Agreement with respect to Letters of Credit
to be issued thereafter and (ii) references herein to the term "Issuing Lender"
shall be deemed to refer to such successor or to any previous Issuing Lender, or
to such successor and all previous Issuing Lenders, as the context shall
require. After the replacement of an Issuing Lender hereunder, the replaced
Issuing Lender shall remain a party hereto and shall continue to have all the
rights and obligations of an Issuing Lender under this Agreement with respect to
Letters of Credit issued by it prior to such replacement, but shall not be
required to issue additional Letters of Credit.
(k) Cash Collateralization. If either (i) an Event of Default shall occur
and be continuing and the Borrower receives notice from the Administrative Agent
or the Required Lenders (or, if the maturity of the Loans has been accelerated,
Lenders with LC Exposure representing greater than at least 51% of the total LC
Exposure) demanding the deposit of cash collateral pursuant to this paragraph,
or (ii) the Borrower shall be required to provide cover for LC Exposure pursuant
to Section 2.07(b) or 2.09(b), the Borrower shall immediately deposit into the
Collateral Account an amount in cash equal to, in the case of an Event of
Default, the LC Exposure as of such date plus any accrued and unpaid interest
thereon and, in the case of cover pursuant to Section 2.07(b) or 2.09(b), the
amount required under Section 2.07(b) or 2.09(b), as the case may be; provided
that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default
with respect to the Borrower described in clause (g) or (h) of Article VIII.
Such deposit shall be held by the Administrative Agent in the Collateral Account
as collateral in the first instance for the LC Exposure under this Agreement and
thereafter for the payment of the "Secured Obligations" under and as defined in
the Security Agreement, and for these purposes the Borrower hereby grants a
security interest to the Administrative Agent for the benefit of the Lenders in
the Collateral Account and in any financial assets (as defined in the Uniform
Commercial Code) or other property held therein.
(l) Deliveries. Promptly following the end of each calendar quarter, the
Issuing Lender shall deliver (through the Administrative Agent) to each
Revolving Lender and the Borrower a notice describing the aggregate amount of
all Letters of Credit outstanding at the end of such quarter. Upon the request
of any Revolving Lender from time to time, the Issuing Lender shall deliver any
other information reasonably requested by such Revolving Lender with respect to
each Letter of Credit then outstanding.
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(m) Letters of Credit Under the Existing Credit Agreement. Pursuant to
Section 2.10 of the Existing Credit Agreement, Chase, as the "Issuing Bank"
thereunder, has issued various "Letters of Credit" under and as defined in the
Existing Credit Agreement. On the Effective Date, subject to the satisfaction of
the conditions to effectiveness of the obligations of the Lenders hereunder set
forth in Article V, each of such "Letters of Credit" under the Existing Credit
Agreement shall automatically, and without any action on the part of any Person,
become Letters of Credit hereunder.
SECTION 2.05. Funding of Borrowings.
(a) Funding by Lenders. Each Lender shall make each Loan to be made by it
hereunder on the proposed date thereof by wire transfer of immediately available
funds by 1:00 p.m., New York City time, to the account of the Administrative
Agent most recently designated by it for such purpose by notice to the Lenders.
The Administrative Agent will make such Loans available to the Borrower by
promptly crediting the amounts so received, in like funds, to an account of the
Borrower maintained with the Administrative Agent in New York City and
designated by the Borrower in the applicable Borrowing Request; provided that
ABR Revolving Borrowings made to finance the reimbursement of an LC Disbursement
as provided in Section 2.04(f) shall be remitted by the Administrative Agent to
the Issuing Lender.
(b) Presumption by the Administrative Agent. Unless the Administrative
Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing that such Lender will not make available to the Administrative Agent
such Lender's share of such Borrowing, the Administrative Agent may assume that
such Lender has made such share available on such date in accordance with
paragraph (a) of this Section and may, in reliance upon such assumption, make
available to the Borrower a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the
Administrative Agent, then the applicable Lender and the Borrower severally
agree to pay to the Administrative Agent forthwith on demand such corresponding
amount with interest thereon, for each day from and including the date such
amount is made available to the Borrower to but excluding the date of payment to
the Administrative Agent, at (i) in the case of such Lender, the Federal Funds
Effective Rate or (ii) in the case of the Borrower, the interest rate applicable
to ABR Loans. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender's Loan included in such Borrowing.
SECTION 2.06. Interest Elections.
(a) Elections by the Borrower for Borrowing. Each Borrowing initially shall
be of the Type specified in the applicable Borrowing Request and, in the case of
a Eurodollar Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in
this Section. The Borrower may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be
allocated
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ratably among the Lenders holding the Loans comprising such Borrowing, and the
Loans comprising each such portion shall be considered a separate Borrowing.
(b) Notice of Elections. To make an election pursuant to this Section, the
Borrower shall notify the Administrative Agent of such election by telephone by
the time that a Borrowing Request would be required under Section 2.03 if the
Borrower were requesting a Borrowing of the Type resulting from such election to
be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.
(c) Information in Interest Election Requests. Each telephonic and written
Interest Election Request shall specify the following information in compliance
with Section 2.02:
(i) the Borrowing to which such Interest Election Request applies and,
if different options are being elected with respect to different portions
thereof, the portions thereof to be allocated to each resulting Borrowing
(in which case the information to be specified pursuant to clauses (iii)
and (iv) of this paragraph shall be specified for each resulting
Borrowing);
(ii) the effective date of the election made pursuant to such Interest
Election Request, which shall be a Business Day;
(iii) whether the resulting Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and
(iv) if the resulting Borrowing is a Eurodollar Borrowing, the
Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the
term "Interest Period".
If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.
(d) Notice by the Administrative Agent to Lenders. Promptly following
receipt of an Interest Election Request, the Administrative Agent shall advise
each Lender of the details thereof and of such Lender's portion of each
resulting Borrowing.
(e) Failure to Elect; Events of Default. If the Borrower fails to deliver a
timely Interest Election Request with respect to a Eurodollar Borrowing prior to
the end of the Interest Period applicable thereto, then, unless such Borrowing
is repaid as provided herein, at the end of such Interest Period such Borrowing
shall be converted to an ABR Borrowing. Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing and the
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Administrative Agent, at the request of the Required Lenders, so notifies the
Borrower, then, so long as an Event of Default is continuing (i) no outstanding
Borrowing may be converted to or continued as a Eurodollar Borrowing and (ii)
unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing
at the end of the Interest Period applicable thereto.
(f) Limitations on Lengths of Interest Periods. Notwithstanding any other
provision of this Agreement, the Borrower shall not be entitled to request, or
to elect to convert to or continue as a Eurodollar Borrowing: (i) any Revolving
Borrowing if the Interest Period requested with respect thereto would end after
the Revolving Maturity Date; (ii) any Revolving Borrowing if the Interest Period
requested with respect thereto would commence before and end after any Revolving
Commitment Reduction Date unless, after giving effect thereto, the aggregate
principal amount of the Revolving Loans having Interest Periods that end after
such Revolving Commitment Reduction Date shall be equal to or less than the
aggregate amount of the Revolving Commitments on such Revolving Commitment
Reduction Date; (iii) any Term Borrowing if the Interest Period requested with
respect thereto would end after the Term Loan Maturity Date; (iv) any Term Loan
if the Interest Period therefor would commence before and end after any Term
Loan Principal Payment Date unless, after giving effect thereto, the aggregate
principal amount of the Term Loans having Interest Periods that end after such
Term Loan Principal Payment Date shall be equal to or less than the aggregate
principal amount of the Term Loans permitted to be outstanding after giving
effect to the payments of principal required to be made on such Term Loan
Principal Payment Date; (v) any Incremental Term Borrowing if the Interest
Period requested with respect thereto would end after the Incremental Term Loan
Maturity Date; or (vi) any Incremental Term Loan if the Interest Period therefor
would commence before and end after any Incremental Term Loan Principal Payment
Date unless, after giving effect thereto, the aggregate principal amount of the
Incremental Term Loans having Interest Periods that end after such Incremental
Term Loan Principal Payment Date shall be equal to or less than the aggregate
principal amount of the Incremental Term Loans permitted to be outstanding after
giving effect to the payments of principal required to be made on such
Incremental Term Loan Principal Payment Date.
SECTION 2.07. Termination and Reduction of the Commitments.
(a) Scheduled Termination. Unless previously terminated, (i) the Term Loan
Commitments shall terminate at 5:00 p.m., New York City time, on the Effective
Date, (ii) the Revolving Commitments shall terminate on the Revolving Maturity
Date and (ii) the Incremental Term Loan Commitments shall terminate on the
Incremental Term Loan Commitment Termination Date.
(b) Scheduled Reductions. The aggregate amount of the Revolving Commitments
shall be automatically reduced on each Revolving Commitment Reduction Date set
forth in column (A) below to the amount (subject to reduction pursuant to
paragraph (d) of this Section) set forth in column (B) below opposite such
Revolving Commitment Reduction Date:
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(A) (B)
Revolving Commitment Revolving Commitment
Reduction Date Falling Reduced to the Following
on or Nearest to: Amount ($):
---------------- ----------
March 31, 2001 962,500,000
June 30, 2001 925,000,000
September 30, 2001 887,500,000
December 31, 2001 850,000,000
March 31, 2002 812,500,000
June 30, 2002 775,000,000
September 30, 2002 737,500,000
December 31, 2002 700,000,000
March 31, 2003 662,500,000
June 30, 2003 625,000,000
September 30, 2003 587,500,000
December 31, 2003 550,000,000
March 31, 2004 512,500,000
June 30, 2004 475,000,000
September 30, 2004 437,500,000
December 31, 2004 400,000,000
March 31, 2005 300,000,000
June 30, 2005 200,000,000
September 15, 2005 0
If following any Revolving Commitment Reduction Date the total Revolving
Exposures shall exceed the Revolving Commitments, the Borrower shall, first, pay
Revolving Loans and, second, provide cover for LC Exposure as specified in
Section 2.04(k) in an aggregate amount equal to such excess.
(c) Voluntary Termination or Reduction. The Borrower may at any time
terminate, or from time to time reduce, the Commitments of any Class; provided
that (i) each reduction of the Commitments of any Class pursuant to this Section
shall be in an amount that is $5,000,000 or a larger multiple of $1,000,000 and
(ii) the Borrower shall not terminate or reduce the Revolving Commitments if,
after giving effect to any concurrent prepayment of the Loans in accordance with
Section 2.09, the total Revolving Exposures would exceed the total Revolving
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Commitments. The Borrower shall notify the Administrative Agent of any election
to terminate or reduce the Commitments of any Class under this paragraph (c) at
least two Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly
following receipt of any notice, the Administrative Agent shall advise the
Lenders of the contents thereof. Each notice delivered by the Borrower pursuant
to this Section shall be irrevocable; provided that a notice of termination of
the Revolving Commitments delivered by the Borrower may state that such notice
is conditioned upon the effectiveness of other credit facilities, in which case
such notice may be revoked by the Borrower (by notice to the Administrative
Agent on or prior to the specified effective date) if such condition is not
satisfied.
(d) Voluntary Reductions of Revolving Commitments Carry Forward. Each
reduction in the aggregate amount of the Revolving Commitments pursuant to
paragraph (c) of this Section on any date shall result in an automatic and
simultaneous reduction (but not below zero) in the aggregate amount of the
Revolving Commitments for each Revolving Commitment Reduction Date (as reflected
in column (B) at the end of paragraph (a) of this Section) after such date in an
amount equal to the amount of such reduction.
(e) Effect of Termination or Reduction. Any termination or reduction of the
Commitments of either Class shall be permanent. Each reduction of the
Commitments of either Class shall be made ratably among the Lenders in
accordance with their respective Commitments of such Class.
SECTION 2.08. Repayment of Loans; Evidence of Debt.
(a) Repayment. The Borrower hereby unconditionally promises to pay the
Loans as follows:
(i) to the Administrative Agent for the account of each Revolving
Lender the outstanding principal amount of each Revolving Loan of such
Lender on the Revolving Maturity Date;
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(ii) to the Administrative Agent for the account of each Term Loan
Lender the outstanding principal amount of each Term Loan of such Lender on
each Term Loan Principal Payment Date set forth below in the aggregate
principal amount set forth opposite such Term Loan Principal Payment Date
(subject to adjustment pursuant to paragraph (b) of this Section):
Term Loan Principal Amounts ($):
Payment Date Falling on or ------------
Nearest to:
-----------
March 31, 1999 12,500,000
June 30, 1999 12,500,000
September 30, 1999 12,500,000
December 31, 1999 12,500,000
March 31, 2000 18,750,000
June 30, 2000 18,750,000
September 30, 2000 18,750,000
December 31, 2000 18,750,000
March 31, 2001 25,000,000
June 30, 2001 25,000,000
September 30, 2001 25,000,000
December 31, 2001 25,000,000
March 31, 2002 25,000,000
June 30, 2002 25,000,000
September 30, 2002 25,000,000
December 31, 2002 25,000,000
March 31, 2003 31,250,000
June 30, 2003 31,250,000
September 30, 2003 31,250,000
December 31, 2003 31,250,000
March 31, 2004 37,500,000
June 30, 2004 37,500,000
September 30, 2004 37,500,000
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December 31, 2004 37,500,000
March 31, 2005 37,500,000
June 30, 2005 37,500,000
September 15, 2005 75,000,000
(iii) to the Administrative Agent for the account of each Incremental
Term Loan Lender the outstanding principal amount of each Incremental Term
Loan of such Lender on each Incremental Term Loan Principal Payment Date
set forth below in the principal amount equal to the percentage set forth
opposite such Incremental Term Loan Principal Payment Date of the principal
amount of such Incremental Term Loan outstanding on the Incremental Term
Loan Commitment Termination Date (subject to adjustment pursuant to
paragraph (b) of this Section):
Incremental Term Loan Percentage (%):
Principal Payment Date ---------------
Falling on or Nearest to:
-------------------------
March 31, 2001 1
June 30, 2001 1
September 30, 2001 1
December 31, 2001 1
March 31, 2002 1
June 30, 2002 1
September 30, 2002 1
December 31, 2002 1
March 31, 2003 1
June 30, 2003 1
September 30, 2003 1
December 31, 2003 1
March 31, 2004 1
June 30, 2004 1
September 30, 2004 1
December 31, 2004 1
March 31, 2005 1
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June 30, 2005 1
September 30, 2005 1
December 31, 2005 1
March 31, 2006 1
June 30, 2006 79
(b) Adjustment of Amortization Schedule. Any prepayment of a Term Loan or
an Incremental Term Loan shall be applied to reduce the remaining scheduled
installments thereof in inverse order of maturity. To the extent not previously
paid, all Term Loans shall be due and payable on the Term Loan Maturity Date. To
the extent not previously paid, all Incremental Term Loans shall be due and
payable on the Incremental Term Loan Maturity Date.
(c) Manner of Payment. Prior to any repayment or prepayment of any
Borrowings of either Class hereunder, the Borrower shall select the Borrowing or
Borrowings of the applicable Class to be paid and shall notify the
Administrative Agent by telephone (confirmed by telecopy) of such selection not
later than 10:00 a.m., New York City time, three Business Days before the
scheduled date of such repayment; provided that each repayment of Borrowings of
either Class shall be applied to repay any outstanding ABR Borrowings of such
Class before any other Borrowings of such Class. If the Borrower fails to make a
timely selection of the Borrowing or Borrowings to be repaid or prepaid, such
payment shall be applied, first, to pay any outstanding ABR Borrowings of the
applicable Class and, second, to other Borrowings of such Class in the order of
the remaining duration of their respective Interest Periods (the Borrowing with
the shortest remaining Interest Period to be repaid first). Each payment of a
Borrowing shall be applied ratably to the Loans included in such Borrowing.
(d) Maintenance of Loan Accounts by Lenders. Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender resulting from each Loan made by
such Lender, including the amounts of principal and interest payable and paid to
such Lender from time to time hereunder.
(e) Maintenance of Loan Accounts by the Administrative Agent. The
Administrative Agent shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the Class and Type thereof and the Interest
Period applicable thereto, (ii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder
and (iii) the amount of any sum received by the Administrative Agent hereunder
for the account of the Lenders and each Lender's share thereof.
(f) Effect of Loan Accounts. The entries made in the accounts maintained
pursuant to paragraph (d) or (e) of this Section shall be prima facie evidence
of the existence and amounts of the obligations recorded therein; provided that
the failure of any Lender or the Administrative Agent to maintain such accounts
or any error therein shall not in any manner affect the obligation of the
Borrower to repay the Loans in accordance with the terms of this Agreement.
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(g) Promissory Notes. Any Lender may request that Loans of any Class made
by it be evidenced by a promissory note. In such event, the Borrower shall
prepare, execute and deliver to such Lender a promissory note payable to the
order of such Lender (or, if requested by such Lender, to such Lender and its
registered assigns) and in a form approved by the Administrative Agent.
Thereafter, the Loans evidenced by such promissory note and interest thereon
shall at all times (including after assignment pursuant to Section 10.04) be
represented by one or more promissory notes in such form payable to the order of
the payee named therein (or, if such promissory note is a registered note, to
such payee and its registered assigns).
SECTION 2.09. Prepayment of Loans.
(a) Optional Prepayments. The Borrower shall have the right at any time and
from time to time to prepay any Borrowing in whole or in part, subject to the
requirements of this Section. Any prepayment of the Term Loans or the
Incremental Term Loans pursuant to this paragraph shall be applied ratably to
the then outstanding Term Loans and Incremental Term Loans and, in each case,
ratably to the respective installments thereof in the inverse order of maturity.
Any partial prepayment shall be in an amount that is $1,000,000 or a larger
multiple of $100,000.
(b) Mandatory Prepayments. The Borrower will prepay the Loans (and/or
provide cover for LC Exposure as specified in Section 2.04(k)), and/or the
Commitments shall be subject to automatic reduction, as follows:
(i) Excess Cash Flow. Not later than the date 110 days after the end
of each fiscal year of the Borrower commencing with the fiscal year ending
on December 31, 1999, the Borrower shall prepay the Loans (and/or provide
cover for LC Exposure as specified in Section 2.04(k)), and/or the
Commitments shall be subject to automatic reduction, in an aggregate amount
equal to the excess of (A) 50% of Excess Cash Flow for such fiscal year
over (B) the aggregate amount of prepayments of Term Loans made during such
fiscal year pursuant to paragraph (a) of this Section and, after the
payment in full of the Term Loans, the aggregate amount of voluntary
reductions of the Revolving Commitments made during such fiscal year
pursuant to Section 2.07(c), such prepayment and/or reduction to be
effected in each case in the manner and to the extent specified in clause
(iv) of this paragraph; provided that if the Total Indebtedness Ratio as of
the last day of any fiscal year is less than 6.00 to 1, the Borrower shall
not be required to make a prepayment under this clause (i) for such fiscal
year.
(ii) Sale of Assets. Without limiting the obligation of the Borrower
to obtain the consent of the Required Lenders pursuant to Section 7.05 to
any Disposition not otherwise permitted hereunder, in the event that the
Net Available Proceeds of any Disposition (the "Current Disposition"), and
of all prior Dispositions (other than sales of assets in the ordinary
course of business or in connection with any Receivables Financing) as to
which a prepayment has not yet been made under this paragraph, shall exceed
$100,000,000 in the aggregate for any fiscal year (such excess amount for
any
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fiscal year, the "Excess Disposition Proceeds"), then, no later than five
Business Days prior to the consummation of the Current Disposition, the
Borrower will deliver to the Lenders a statement, certified by a Financial
Officer of the Borrower, in form and detail satisfactory to the
Administrative Agent, of the amount of the Net Available Proceeds of the
Current Disposition and of all such prior Dispositions and will, on or
prior to the date which is 270 days after the consummation of the Current
Disposition, prepay the Loans (and/or provide cover for LC Exposure as
specified in Section 2.04(k)), and/or the Commitments shall be subject to
automatic reduction, in an aggregate amount equal to the Excess Disposition
Proceeds, such prepayment and/or reduction to be effected in each case in
the manner and to the extent specified in clause (iv) of this paragraph,
provided that, notwithstanding the foregoing, the Borrower shall not be
required to make a prepayment under this clause (ii) (A) with respect to
any Disposition permitted under Section 7.05 or (B) to the extent that on
or prior to the date within 180 days following receipt of the Net Available
Proceeds of the Current Disposition the Borrower shall have advised the
Administrative Agent that it has entered into a legally binding commitment
to make any Acquisition permitted under Section 7.04(f) and that it intends
to use all or portion of the Net Available Proceeds of the Current
Disposition to finance such Acquisitions and that, on or prior to the date
which is 360 days after the Current Disposition, such proceeds are actually
so invested.
(iii) Casualty Events. Upon the date 270 days following the receipt by
the Borrower of the proceeds of insurance, condemnation award or other
compensation in respect of any Casualty Event affecting any property of the
Borrower or any of its Subsidiaries (or upon such earlier date as the
Borrower or such Subsidiary, as the case may be, shall have determined not
to repair or replace the property affected by such Casualty Event) (the
"Current Casualty Event"), in the event that the aggregate amount of the
Net Available Proceeds of such Current Casualty Event, together with the
aggregate amount of Net Available Proceeds in respect of any prior Casualty
Event not theretofore applied to repair or replace the property affected by
such prior Casualty Event, shall exceed $25,000,000 in the aggregate (any
such excess amount, the "Excess Casualty Proceeds Amount"), then the
Borrower shall prepay the Loans (and/or provide cover for LC Exposure as
specified in Section 2.04(k)), and/or the Commitments shall be subject to
automatic reduction, in an aggregate amount, if any, equal to the Excess
Casualty Proceeds Amount, such prepayment and/or reduction to be effected
in each case in the manner and to the extent specified in clause (iv) of
this paragraph.
(iv) Application. Prepayments and/or reductions of Commitments
pursuant to this paragraph shall be applied as follows:
first, to prepay the Term Loans and the Incremental Term Loans, and
second, after the payment in full of the Term Loans and the
Incremental Term Loans, to reduce the aggregate amount of the Revolving
Commitments (and to the extent that, after giving effect to such
reduction, the total Revolving Exposures would exceed the Revolving
Commitments, the Borrower shall, first,
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prepay Revolving Loans and second, provide cover for LC Exposure as
specified in Section 2.04(k) in an aggregate amount equal to such
excess).
Each such prepayment of the Term Loans and the Incremental Term Loans shall
be applied ratably to the then outstanding Term Loans and Incremental Term
Loans and, in each case, ratably to the installments thereof in inverse
order of maturity.
(c) Notices, Etc. The Borrower shall notify the Administrative Agent by
telephone (confirmed by telecopy) of any optional prepayment hereunder (i) in
the case of prepayment of a Eurodollar Borrowing, not later than 10:00 a.m., New
York City time, three Business Days before the date of prepayment or (ii) in the
case of prepayment of an ABR Borrowing, not later than 10:00 a.m., New York City
time, one Business Day before the date of prepayment. Each such notice shall be
irrevocable and shall specify the prepayment date, the principal amount of each
Borrowing or portion thereof to be prepaid and, in the case of a mandatory
prepayment, a reasonably detailed calculation of the amount of such prepayment;
provided that, if a notice of prepayment is given in connection with a
conditional notice of termination of the Revolving Commitments as contemplated
by Section 2.07, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.07. Promptly following
receipt of any such notice relating to a Borrowing, the Administrative Agent
shall advise the relevant Lenders of the contents thereof. Each partial
prepayment of any Borrowing shall be in an amount that would be permitted in the
case of a Borrowing of the same Type as provided in Section 2.02, except as
necessary to apply fully the required amount of a mandatory prepayment. Each
prepayment of a Borrowing shall be applied ratably to the Loans included in the
prepaid Borrowing. Prepayments shall be accompanied by accrued interest to the
extent required by Section 2.11 and shall be made in the manner specified in
Section 2.08(c).
SECTION 2.10. Fees.
(a) Commitment Fee. The Borrower agrees to pay to the Administrative Agent
for the account of each Lender a commitment fee, which shall accrue at the
Applicable Rate on the average daily unused amount of the Revolving Commitment
of such Lender during the period from and including the date hereof to but
excluding the earlier of the date such Revolving Commitment terminates and the
Revolving Maturity Date. Accrued commitment fees shall be payable in arrears on
each Quarterly Date and on the earlier of the date the relevant Commitment
terminates and the Revolving Maturity Date, commencing on the first such date to
occur after the date hereof. All commitment fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). For purposes of computing
commitment fees, the Revolving Commitment of a Lender shall be deemed to be used
to the extent of the outstanding Revolving Loans and LC Exposure of such Lender.
(b) Letter of Credit Fees. The Borrower agrees to pay (i) to the
Administrative Agent for the account of each Revolving Lender a participation
fee with respect to its participations in Letters of Credit, which shall accrue
at a rate per annum equal to the Applicable
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Rate applicable to interest on Eurodollar Revolving Loans on the average daily
amount of such Lender's LC Exposure (excluding any portion thereof attributable
to unreimbursed LC Disbursements) during the period from and including the
Effective Date to but excluding the later of the date on which such Lender's
Revolving Commitment terminates and the date on which such Lender ceases to have
any LC Exposure, and (ii) to the Issuing Lender a fronting fee, which shall
accrue at the rate or rates per annum separately agreed upon between the
Borrower and the Issuing Lender on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date of termination of the Revolving Commitments and the date on
which there ceases to be any LC Exposure, as well as the Issuing Lender's
standard fees with respect to the issuance, amendment, renewal or extension of
any Letter of Credit or processing of drawings thereunder. Participation fees
and fronting fees accrued through and including each Quarterly Date shall be
payable on the third Business Day following such Quarterly Date, commencing on
the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Revolving Commitments terminate
and any such fees accruing after the date on which the Revolving Commitments
terminate shall be payable on demand. Any other fees payable to the Issuing
Lender pursuant to this paragraph shall be payable within 10 days after demand.
All participation fees and fronting fees shall be computed on the basis of a
year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).
(c) Administrative Agent Fees. The Borrower agrees to pay to the
Administrative Agent, for its own account, fees payable in the amounts and at
the times separately agreed upon between the Borrower and the Administrative
Agent.
(d) Payment of Fees. All fees payable hereunder shall be paid on the dates
due, in immediately available funds, to the Administrative Agent (or to the
Issuing Lender, in the case of fees payable to it) for distribution, in the case
of commitment fees and participation fees, to the Lenders entitled thereto. Fees
paid shall not be refundable under any circumstances.
SECTION 2.11. Interest.
(a) ABR Loans. The Loans comprising each ABR Borrowing shall bear interest
at a rate per annum equal to the Alternate Base Rate plus the Applicable Rate.
(b) Eurodollar Loans. The Loans comprising each Eurodollar Borrowing shall
bear interest at a rate per annum equal to the Adjusted LIBO Rate for the
Interest Period in effect for such Borrowing plus the Applicable Rate.
(c) Default Interest. Notwithstanding the foregoing, during any period that
a Post-Default Condition exists (whether or not the same is thereafter cured),
the Borrower hereby promises to pay to the Administrative Agent for account of
each Lender interest at the applicable Post-Default Rate on any principal of any
Loan made by such Lender (whether or not then due),
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on any Reimbursement Obligation owing to such Lender and on any other amount
then due and payable by the Borrower hereunder.
(d) Payment of Interest. Accrued interest on each Loan shall be payable in
arrears on each Interest Payment Date for such Loan and, in the case of
Revolving Loans, upon termination of the Revolving Commitments; provided that
(i) interest accrued pursuant to paragraph (c) of this Section shall be payable
on demand, (ii) in the event of any repayment or prepayment of any Loan (other
than a prepayment of an ABR Revolving Loan prior to the Revolving Maturity
Date), accrued interest on the principal amount repaid or prepaid shall be
payable on the date of such repayment or prepayment and (iii) in the event of
any conversion of any Eurodollar Borrowing prior to the end of the current
Interest Period therefor, accrued interest on such Borrowing shall be payable on
the effective date of such conversion.
(e) Computation. All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.
SECTION 2.12. Alternate Rate of Interest. If prior to the commencement of
any Interest Period for a Eurodollar Borrowing:
(a) the Administrative Agent determines (which determination shall be
conclusive absent manifest error) that adequate and reasonable means do not
exist for ascertaining the Adjusted LIBO Rate for such Interest Period; or
(b) if such Borrowing is of a particular Class of Loans, the
Administrative Agent is advised by the Required Lenders of such Class that
the Adjusted LIBO Rate for such Interest Period will not adequately and
fairly reflect the cost to such Lenders of making or maintaining their
Loans included in such Borrowing for such Interest Period;
then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective
and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such
Borrowing shall be made as an ABR Borrowing.
SECTION 2.13. Increased Costs.
(a) Increased Costs Generally. If any Change in Law shall:
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(i) impose, modify or deem applicable any reserve, special deposit or
similar requirement against assets of, deposits with or for the account of,
or credit extended by, any Lender (except any such reserve requirement
reflected in the Adjusted LIBO Rate) or the Issuing Lender; or
(ii) impose on any Lender or the Issuing Lender or the London
interbank market any other condition affecting this Agreement or Eurodollar
Loans made by such Lender or any Letter of Credit or participation therein;
and the result of any of the foregoing shall be to increase the cost to such
Lenders of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or the
Issuing Lender of participating in, issuing or maintaining any Letter of Credit
or to reduce the amount of any sum received or receivable by such Lender or the
Issuing Lender hereunder (whether of principal, interest or otherwise), then the
Borrower will pay to such Lender or the Issuing Lender, as the case may be, such
additional amount or amounts as will compensate such Lender or the Issuing
Lender, as the case may be, for such additional costs incurred or reduction
suffered.
(b) Capital Requirements. If any Lender or the Issuing Lender determines
that any Change in Law regarding capital requirements has or would have the
effect of reducing the rate of return on such Lender's or the Issuing Lender's
capital or on the capital of such Lender's or the Issuing Lender's holding
company, if any, as a consequence of this Agreement or the Loans made by, or
participations in Letters of Credit held by, such Lender, or the Letters of
Credit issued by the Issuing Lender, to a level below that which such Lender or
the Issuing Lender or such Lender's or the Issuing Lender's holding company
could have achieved but for such Change in Law (taking into consideration such
Lender's or the Issuing Lender's policies and the policies of such Lender's or
the Issuing Lender's holding company with respect to capital adequacy), then
from time to time the Borrower will pay to such Lender or the Issuing Lender, as
the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Lender or such Lender's or the Issuing Lender's holding
company for any such reduction suffered.
(c) Certificates from Lenders. A certificate of a Lender or the Issuing
Lender setting forth the amount or amounts necessary to compensate such Lender
or the Issuing Lender or its holding company, as the case may be, as specified
in paragraph (a) or (b) of this Section shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender or
the Issuing Lender, as the case may be, the amount shown as due on any such
certificate within 10 days after receipt thereof.
(d) Delay in Requests. Failure or delay on the part of any Lender or the
Issuing Lender to demand compensation pursuant to this Section shall not
constitute a waiver of such Lender's or the Issuing Lender's right to demand
such compensation; provided that the Borrower shall not be required to
compensate a Lender or the Issuing Lender pursuant to this Section for any
increased costs or reductions incurred more than 45 days prior to the date that
such Lender or the Issuing Lender, as the case may be, notifies the Borrower of
the Change in Law giving rise
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to such increased costs or reductions and of such Lender's or the Issuing
Lender's intention to claim compensation therefor; provided further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive,
then the 45-day period referred to above shall be extended to include the period
of retroactive effect thereof.
SECTION 2.14. Break Funding Payments . In the event of (a) the payment of
any principal of any Eurodollar Loan other than on the last day of an Interest
Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto, (c) the failure to borrow, convert, continue or
prepay any Loan on the date specified in any notice delivered pursuant hereto
(regardless of whether such notice is permitted to be revocable under Section
2.09(c) and is revoked in accordance herewith), or (d) the assignment of any
Eurodollar Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the Borrower pursuant to Section 2.17, then,
in any such event, the Borrower shall compensate each Lender for the loss, cost
and expense attributable to such event. In the case of a Eurodollar Loan, the
loss to any Lender attributable to any such event shall be deemed to include an
amount determined by such Lender to be equal to the excess, if any, of (i) the
amount of interest that such Lender would pay for a deposit equal to the
principal amount of such Loan for the period from the date of such payment,
conversion, failure or assignment to the last day of the then current Interest
Period for such Loan (or, in the case of a failure to borrow, convert or
continue, the duration of the Interest Period that would have resulted from such
borrowing, conversion or continuation) if the interest rate payable on such
deposit were equal to the Adjusted LIBO Rate for such Interest Period, over (ii)
the amount of interest that such Lender would earn on such principal amount for
such period if such Lender were to invest such principal amount for such period
at the interest rate that would be bid by such Lender (or an Affiliate of such
Lender) for dollar deposits from other banks in the eurodollar market at the
commencement of such period. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent
manifest error. The Borrower shall pay such Lender the amount shown as due on
any such certificate within 10 days after receipt thereof.
SECTION 2.15. Taxes.
(a) Payments Free of Taxes. Any and all payments by or on account of any
obligation of the Borrower hereunder or under any other Loan Document shall be
made free and clear of and without deduction for any Indemnified Taxes or Other
Taxes; provided that if the Borrower shall be required to deduct any Indemnified
Taxes or Other Taxes from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the
Administrative Agent, Lender or Issuing Lender (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions and (iii) the Borrower shall pay
the full amount deducted to the relevant Governmental Authority in accordance
with applicable law.
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(b) Payment of Other Taxes by the Borrower. In addition, the Borrower shall
pay any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.
(c) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent, each Lender and the Issuing Lender, within 10 days after
written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by the Administrative
Agent, such Lender or the Issuing Lender, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of such payment or liability delivered to the Borrower by a Lender or
the Issuing Lender, or by the Administrative Agent on its own behalf or on
behalf of a Lender or the Issuing Lender, shall be conclusive absent manifest
error.
(d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority,
the Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.
(e) Foreign Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which
the Borrower is located, or any treaty to which such jurisdiction is a party,
with respect to payments under this Agreement shall deliver to the Borrower
(with a copy to the Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by the Borrower, such properly completed
and executed documentation prescribed by applicable law as will permit such
payments to be made without withholding or at a reduced rate.
SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set-offs.
(a) Payments by the Obligors. Each Obligor shall make each payment required
to be made by it hereunder (whether of principal, interest, fees or
reimbursement of LC Disbursements, or under Section 2.13, 2.14 or 2.15, or
otherwise) or under any other Loan Document (except to the extent otherwise
provided therein) prior to 1:00 p.m., New York City time, on the date when due,
in immediately available funds, without set-off or counterclaim. Any amounts
received after such time on any date may, in the discretion of the
Administrative Agent, be deemed to have been received on the next succeeding
Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 000 Xxxx Xxxxxx, Xxx
Xxxx, Xxx Xxxx, except as otherwise expressly provided in the relevant Loan
Document, and except payments to be made directly to the Issuing Lender as
expressly provided herein and except that payments pursuant to Sections 2.13,
2.14, 2.15 and 10.03 shall be made directly to the Persons entitled thereto. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day
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that is not a Business Day, the date for payment shall be extended to the next
succeeding Business Day and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
hereunder or under any other Loan Document (except to the extent otherwise
provided therein) shall be made in dollars.
(b) Application of Insufficient Payments. If at any time insufficient funds
are received by and available to the Administrative Agent to pay fully all
amounts of principal, unreimbursed LC Disbursements, interest and fees then due
hereunder, such funds shall be applied (i) first, to pay interest and fees then
due hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, to pay
principal and unreimbursed LC Disbursements then due hereunder, ratably among
the parties entitled thereto in accordance with the amounts of principal and
unreimbursed LC Disbursements then due to such parties.
(c) Pro Rata Treatment. Except to the extent otherwise provided herein: (i)
each Borrowing of a particular Class shall be made from the relevant Lenders,
each payment of commitment fee under Section 2.10 shall be made for account of
the relevant Lenders, and each termination or reduction of the amount of the
Commitments of a particular Class under Section 2.07 shall be applied to the
respective Commitments of such Class of the relevant Lenders, pro rata according
to the amounts of their respective Commitments of such Class; (ii) each
Borrowing of any Class shall be allocated pro rata among the relevant Lenders
according to the amounts of their respective Commitments of such Class (in the
case of the making of Loans) or their respective Loans of such Class (in the
case of conversions and continuations of Loans); (iii) each payment or
prepayment of principal of Revolving Loans, Term Loans and Incremental Term
Loans by the Borrower shall be made for account of the relevant Lenders pro rata
in accordance with the respective unpaid principal amounts of the Loans of such
Class held by them; and (iv) each payment of interest on Revolving Loans, Term
Loans and Incremental Term Loans by the Borrower shall be made for account of
the relevant Lenders pro rata in accordance with the amounts of interest on such
Loans then due and payable to the respective Lenders.
(d) Sharing of Payments by Lenders. If any Lender shall, by exercising any
right of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or participations in LC
Disbursements resulting in such Lender receiving payment of a greater proportion
of the aggregate amount of its Loans and participations in LC Disbursements and
accrued interest thereon then due than the proportion received by any other
Lender, then the Lender receiving such greater proportion shall purchase (for
cash at face value) participations in the Loans and participations in LC
Disbursements of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective Loans
and participations in LC Disbursements; provided that (i) if any such
participations are purchased and all or any portion of the payment giving rise
thereto is recovered, such participations shall be rescinded and the purchase
price restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by any Obligor pursuant to and in accordance with the express terms of this
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Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans or participations
in LC Disbursements to any assignee or participant, other than to the Borrower
or any Subsidiary or Affiliate thereof (as to which the provisions of this
paragraph shall apply). Each Obligor consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender
acquiring a participation pursuant to the foregoing arrangements may exercise
against such Obligor rights of set-off and counterclaim with respect to such
participation as fully as if such Lender were a direct creditor of such Obligor
in the amount of such participation.
(e) Presumptions of Payment. Unless the Administrative Agent shall have
received notice from the Borrower prior to the date on which any payment is due
to the Administrative Agent for the account of the Lenders or the Issuing Lender
hereunder that the Borrower will not make such payment, the Administrative Agent
may assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
the Issuing Lender, as the case may be, the amount due. In such event, if the
Borrower has not in fact made such payment, then each of the Lenders or the
Issuing Lender, as the case may be, severally agrees to repay to the
Administrative Agent forthwith on demand the amount so distributed to such
Lender or the Issuing Lender with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the Federal Funds Effective Rate.
(f) Certain Deductions by the Administrative Agent. If any Lender shall
fail to make any payment required to be made by it pursuant to Section 2.04(e)
or (f), 2.05(b) or 2.16(e), then the Administrative Agent may, in its discretion
(notwithstanding any contrary provision hereof), apply any amounts thereafter
received by the Administrative Agent hereunder for the account of such Lender to
satisfy such Lender's obligations under such Sections until all such unsatisfied
obligations are fully paid.
SECTION 2.17. Mitigation Obligations; Replacement of Lenders.
(a) Designation of a Different Lending Office. If any Lender requests
compensation under Section 2.13, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account of
any Lender pursuant to Section 2.15, then such Lender shall use reasonable
efforts to designate a different lending office for funding or booking its Loans
hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or Affiliates, if, in the judgment of such Lender, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 2.13 or 2.15, as the case may be, in the future and (ii) would not
subject such Lender to any unreimbursed cost or expense and would not otherwise
be disadvantageous to such Lender. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment.
(b) Replacement of Lenders. If any Lender requests compensation under
Section 2.13, or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to
Section 2.15, or if any Lender
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defaults in its obligation to fund Loans hereunder, or if any Lender does not
agree to any request by the Borrower for a consent, approval, amendment or
waiver hereunder that requires the consent or approval of all of the Lenders,
then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained
in Section 10.04), all its interests, rights and obligations under this
Agreement to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the Administrative
Agent (and, if a Revolving Commitment is being assigned, the Issuing Lender),
which consent shall not unreasonably be withheld, (ii) such Lender shall have
received payment of an amount equal to the outstanding principal of its Loans
and participations in LC Disbursements, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder, from the assignee (to the extent
of such outstanding principal and accrued interest and fees) or the Borrower (in
the case of all other amounts) and (iii) in the case of any such assignment
resulting from a claim for compensation under Section 2.13 or payments required
to be made pursuant to Section 2.15, such assignment will result in a reduction
in such compensation or payments. A Lender shall not be required to make any
such assignment and delegation if, prior thereto, as a result of a waiver by
such Lender or otherwise, the circumstances entitling the Borrower to require
such assignment and delegation cease to apply.
ARTICLE III
GUARANTEE
SECTION 3.01. The Guarantee. The Subsidiary Guarantors hereby jointly and
severally guarantee to each Lender and the Administrative Agent and their
respective successors and assigns the prompt payment in full when due (whether
at stated maturity, by acceleration or otherwise) of the principal of and
interest on the Loans made by the Lenders to the Borrower and all other amounts
from time to time owing to the Lenders or the Administrative Agent by the
Borrower under this Agreement and by any Obligor under any of the other Loan
Documents, and all obligations of the Borrower or any of its Subsidiaries to any
of the Lenders and their respective Affiliates in respect of any Hedging
Agreement, in each case strictly in accordance with the terms thereof (such
obligations being herein collectively called the "Guaranteed Obligations"). The
Subsidiary Guarantors hereby further jointly and severally agree that if the
Borrower shall fail to pay in full when due (whether at stated maturity, by
acceleration or otherwise) any of the Guaranteed Obligations, the Subsidiary
Guarantors will promptly pay the same, without any demand or notice whatsoever,
and that in the case of any extension of time of payment or renewal of any of
the Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, by acceleration or otherwise) in accordance with
the terms of such extension or renewal.
SECTION 3.02. Obligations Unconditional. The obligations of the Subsidiary
Guarantors under Section 3.01 are absolute and unconditional, joint and several,
irrespective of the value, genuineness, validity, regularity or enforceability
of the obligations of the Borrower
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under this Agreement or any other agreement or instrument referred to herein or
therein, or any substitution, release or exchange of any other guarantee of or
security for any of the Guaranteed Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
that might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section that the obligations of
the Subsidiary Guarantors hereunder shall be absolute and unconditional, joint
and several, under any and all circumstances. Without limiting the generality of
the foregoing, it is agreed that the occurrence of any one or more of the
following shall not alter or impair the liability of the Subsidiary Guarantors
hereunder, which shall remain absolute and unconditional as described above:
(i) at any time or from time to time, without notice to the Subsidiary
Guarantors, the time for any performance of or compliance with any of the
Guaranteed Obligations shall be extended, or such performance or compliance
shall be waived;
(ii) any of the acts mentioned in any of the provisions of this
Agreement or any other agreement or instrument referred to herein shall be
done or omitted;
(iii) the maturity of any of the Guaranteed Obligations shall be
accelerated, or any of the Guaranteed Obligations shall be modified,
supplemented or amended in any respect, or any right under this Agreement
or any other agreement or instrument referred to herein shall be waived or
any other guarantee of any of the Guaranteed Obligations or any security
therefor shall be released or exchanged in whole or in part or otherwise
dealt with; or
(iv) any lien or security interest granted to, or in favor of, the
Administrative Agent or any Lender or Lenders as security for any of the
Guaranteed Obligations shall fail to be perfected.
The Subsidiary Guarantors hereby expressly waive diligence, presentment, demand
of payment, protest and all notices whatsoever, and any requirement that the
Administrative Agent or any Lender exhaust any right, power or remedy or proceed
against the Borrower under this Agreement or any other agreement or instrument
referred to herein, or against any other Person under any other guarantee of, or
security for, any of the Guaranteed Obligations.
SECTION 3.03. Reinstatement. The obligations of the Subsidiary Guarantors
under this Article shall be automatically reinstated if and to the extent that
for any reason any payment by or on behalf of the Borrower in respect of the
Guaranteed Obligations is rescinded or must be otherwise restored by any holder
of any of the Guaranteed Obligations, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, and the Subsidiary Guarantors jointly
and severally agree that they will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including fees of
counsel) incurred by the Administrative Agent or such Lender in connection with
such rescission or restoration, including any such costs and expenses incurred
in defending against any claim
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alleging that such payment constituted a preference, fraudulent transfer or
similar payment under any bankruptcy, insolvency or similar law.
SECTION 3.04. Subrogation. The Subsidiary Guarantors hereby jointly and
severally agree that until the payment and satisfaction in full of all
Guaranteed Obligations and the expiration and termination of the Commitments of
the Lenders under this Agreement they shall not exercise any right or remedy
arising by reason of any performance by them of their guarantee in Section 3.01,
whether by subrogation or otherwise, against the Borrower or any other guarantor
of any of the Guaranteed Obligations or any security for any of the Guaranteed
Obligations.
SECTION 3.05. Remedies. The Subsidiary Guarantors jointly and severally
agree that, as between the Subsidiary Guarantors and the Lenders, the
obligations of the Borrower under this Agreement may be declared to be forthwith
due and payable as provided in Article VIII (and shall be deemed to have become
automatically due and payable in the circumstances provided in Article VIII) for
purposes of Section 3.01 notwithstanding any stay, injunction or other
prohibition preventing such declaration (or such obligations from becoming
automatically due and payable) as against the Borrower and that, in the event of
such declaration (or such obligations being deemed to have become automatically
due and payable), such obligations (whether or not due and payable by the
Borrower) shall forthwith become due and payable by the Subsidiary Guarantors
for purposes of Section 3.01.
SECTION 3.06. Instrument for the Payment of Money. Each Subsidiary
Guarantor hereby acknowledges that the guarantee in this Article constitutes an
instrument for the payment of money, and consents and agrees that any Lender or
the Administrative Agent, at its sole option, in the event of a dispute by such
Subsidiary Guarantor in the payment of any moneys due hereunder, shall have the
right to bring motion-action under New York CPLR Section 3213.
SECTION 3.07. Continuing Guarantee. The guarantee in this Article is a
continuing guarantee, and shall apply to all Guaranteed Obligations whenever
arising.
SECTION 3.08. Rights of Contribution. The Subsidiary Guarantors hereby
agree, as between themselves, that if any Subsidiary Guarantor shall become an
Excess Funding Guarantor (as defined below) by reason of the payment by such
Subsidiary Guarantor of any Guaranteed Obligations, each other Subsidiary
Guarantor shall, on demand of such Excess Funding Guarantor (but subject to the
next sentence), pay to such Excess Funding Guarantor an amount equal to such
Subsidiary Guarantor's Pro Rata Share (as defined below and determined, for this
purpose, without reference to the properties, debts and liabilities of such
Excess Funding Guarantor) of the Excess Payment (as defined below) in respect of
such Guaranteed Obligations. The payment obligation of a Subsidiary Guarantor to
any Excess Funding Guarantor under this Section shall be subordinate and subject
in right of payment to the prior payment in full of the obligations of such
Subsidiary Guarantor under the other provisions of this Article and such Excess
Funding Guarantor shall not exercise any right or remedy with respect to such
excess until payment and satisfaction in full of all of such obligations.
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For purposes of this Section, (i) "Excess Funding Guarantor" means, in
respect of any Guaranteed Obligations, a Subsidiary Guarantor that has paid an
amount in excess of its Pro Rata Share of such Guaranteed Obligations, (ii)
"Excess Payment" means, in respect of any Guaranteed Obligations, the amount
paid by an Excess Funding Guarantor in excess of its Pro Rata Share of such
Guaranteed Obligations and (iii) "Pro Rata Share" means, for any Subsidiary
Guarantor, the ratio (expressed as a percentage) of (x) the amount by which the
aggregate present fair saleable value of all properties of such Subsidiary
Guarantor (excluding any shares of stock of any other Subsidiary Guarantor)
exceeds the amount of all the debts and liabilities of such Subsidiary Guarantor
(including contingent, subordinated, unmatured and unliquidated liabilities, but
excluding the obligations of such Subsidiary Guarantor hereunder and any
obligations of any other Subsidiary Guarantor that have been Guaranteed by such
Subsidiary Guarantor) to (y) the amount by which the aggregate fair saleable
value of all properties of all of the Subsidiary Guarantors exceeds the amount
of all the debts and liabilities (including contingent, subordinated, unmatured
and unliquidated liabilities, but excluding the obligations of the Borrower and
the Subsidiary Guarantors hereunder and under the other Loan Documents) of all
of the Subsidiary Guarantors, determined (A) with respect to any Subsidiary
Guarantor that is a party hereto on the Effective Date, as of the Effective
Date, and (B) with respect to any other Subsidiary Guarantor, as of the date
such Subsidiary Guarantor becomes a Subsidiary Guarantor hereunder.
SECTION 3.09. General Limitation on Guarantee Obligations. In any action or
proceeding involving any state corporate law, or any state or Federal
bankruptcy, insolvency, reorganization or other law affecting the rights of
creditors generally, if the obligations of any Subsidiary Guarantor under
Section 3.01 would otherwise, taking into account the provisions of Section
3.08, be held or determined to be void, invalid or unenforceable, or
subordinated to the claims of any other creditors, on account of the amount of
its liability under Section 3.01, then, notwithstanding any other provision
hereof to the contrary, the amount of such liability shall, without any further
action by such Subsidiary Guarantor, any Lender, the Administrative Agent or any
other Person, be automatically limited and reduced to the highest amount that is
valid and enforceable and not subordinated to the claims of other creditors as
determined in such action or proceeding.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
The Borrower represents and warrants to the Lenders that:
SECTION 4.01. Organization; Powers. Each of the Borrower and its
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, could not
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reasonably be expected to result in a Material Adverse Effect, is qualified to
do business in, and is in good standing in, every jurisdiction where such
qualification is required.
SECTION 4.02. Authorization; Enforceability. The Transactions are within
each Obligor's corporate powers and have been duly authorized by all necessary
corporate and, if required, by all necessary shareholder action. This Agreement
has been duly executed and delivered by each Obligor and constitutes, and each
of the other Loan Documents to which it is a party when executed and delivered
by such Obligor will constitute, a legal, valid and binding obligation of such
Obligor, enforceable against each Obligor in accordance with its terms, except
as such enforceability may be limited by (a) bankruptcy, insolvency,
reorganization, moratorium or similar laws of general applicability affecting
the enforcement of creditors' rights and (b) the application of general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law).
SECTION 4.03. Governmental Approvals; No Conflicts. The Transactions (a) do
not require any consent or approval of, registration or filing with, or any
other action by, any Governmental Authority, except for (i) such as have been
obtained or made and are in full force and effect, (ii) filings in respect of
the Liens created pursuant to the Security Agreement, (iii) the filing with the
FCC of certain of the Loan Documents as required by Section 73.3613 of the FCC's
rules and (iv) the approval by the FCC of the acquisition of any Broadcast
License, (b) will not violate any applicable law or regulation or the charter,
by-laws or other organizational documents of the Borrower or any of its
Subsidiaries or any order of any Governmental Authority, (c) will not violate or
result in a default under any indenture, agreement or other instrument binding
upon the Borrower or any of its Subsidiaries or assets, or give rise to a right
thereunder to require any payment to be made by any such Person, and (d) except
for the Liens created pursuant to the Security Agreement, will not result in the
creation or imposition of any Lien on any asset of the Borrower or any of its
Subsidiaries.
SECTION 4.04. Financial Condition; Material Adverse Change; Year 2000
Issues.
(a) Financial Condition. The Borrower has heretofore furnished to the
Lenders its consolidated balance sheet and statements of income, stockholders'
equity and cash flows as of and for the fiscal years ended December 31, 1996 and
December 31, 1997, reported on by Xxxxxx Xxxxxxxx & Company, independent public
accountants. Such financial statements present fairly, in all material respects,
the financial position and results of operations and cash flows of the Borrower
and its Subsidiaries as of such respective dates and for such respective years
in accordance with GAAP.
(b) No Material Adverse Change. Since December 31, 1997, there has been no
material adverse change in the business, assets, operations, prospects or
condition, financial or otherwise, of the Borrower and its Subsidiaries, taken
as a whole.
(c) Year 2000 Issues. The Borrower has initiated a review of the operations
of the Borrower and its Subsidiaries with a view to assessing whether their
business or operations
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will, in the receipt, transmission, processing, manipulation, storage,
retrieval, retransmission or other utilization of data, be vulnerable to any
significant risk that computer hardware or software used in their business or
operations will not, in the case of dates or time periods occurring after
December 31, 1999, function at least as effectively as in the case of dates or
time periods occurring prior to January 1, 2000. Based on such review, as of the
date hereof, the Borrower has no reason to believe that a Material Adverse
Effect will occur with respect to such business or operations resulting from any
such risk, including, without limitation, as a result of any costs associated
with the reprogramming of systems and equipment of the Borrower and its
Subsidiaries in connection therewith.
SECTION 4.05. Properties.
(a) Property Generally. Each of the Borrower and its Subsidiaries has good
title to, or valid leasehold interests in, all its real and personal property
material to its business, subject only to Liens permitted by Section 7.02 and
except for minor defects in title that do not interfere with its ability to
conduct its business as currently conducted or to utilize such properties for
their intended purposes.
(b) Intellectual Property. Each of the Borrower and its Subsidiaries owns,
or is licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Borrower and its Subsidiaries does not infringe upon the rights of any other
Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.
SECTION 4.06. Litigation and Environmental Matters.
(a) Actions, Suits and Proceedings. There are no actions, suits or
proceedings by or before any arbitrator or Governmental Authority now pending
against or, to the knowledge of the Borrower, threatened against or affecting
the Borrower or any of its Subsidiaries (including Unrestricted Subsidiaries)
(i) as to which there is a reasonable possibility of an adverse determination
and that, if adversely determined, could reasonably be expected, individually or
in the aggregate, to result in a Material Adverse Effect (other than any such
action, suit or proceeding disclosed in Schedule 4.06(a) or (ii) that involve
this Agreement or the Transactions.
(b) Environmental Matters. Except for the matters disclosed in Schedule
4.06(b) and except with respect to any other matters that, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, neither the Borrower nor any of its Subsidiaries (including Unrestricted
Subsidiaries) (i) has failed to comply with any Environmental Law or to obtain,
maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii)
has received notice of any claim with respect to any Environmental Liability or
(iv) knows of any basis for any Environmental Liability.
(c) Disclosed Matters. Since the date of this Agreement, there has been no
change in the status of the matters disclosed in Schedules 4.06(a) and 4.06(b)
that, individually
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or in the aggregate, has resulted in, or materially increased the likelihood of,
a Material Adverse Effect.
SECTION 4.07. Compliance with Laws and Agreements. Each of the Borrower and
its Subsidiaries is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.
SECTION 4.08. Investment and Holding Company Status. Neither the Borrower
nor any of its Subsidiaries is (a) an "investment company" as defined in, or
subject to regulation under, the Investment Company Act of 1940 or (b) a
"holding company" as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.
SECTION 4.09. Taxes. Each of the Borrower and its Subsidiaries has timely
filed or caused to be filed all United States Federal and all other material Tax
returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which such Person has
set aside on its books adequate reserves or (b) to the extent that the failure
to do so could not reasonably be expected to result in a Material Adverse
Effect.
SECTION 4.10. ERISA. The Borrower and the ERISA Affiliates have fulfilled
their respective obligations under the minimum funding standards of ERISA and
the Code with respect to each Plan and are in compliance in all material
respects with the presently applicable provisions of ERISA and the Code, and
have not incurred any liability to the PBGC or any Plan or Multiemployer Plan
(other than to make contributions in the ordinary course of business).
SECTION 4.11. Disclosure. The Borrower has disclosed to the Lenders all
agreements, instruments and corporate or other restrictions to which it or any
of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. None of the reports, financial statements, certificates
or other information furnished by or on behalf of the Obligors to the Lender in
connection with the negotiation of this Agreement and the other Loan Documents
(including, without limitation, the information set forth in the Confidential
Information Memorandum) or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, the Borrower represents only that such information was prepared in
good faith based upon assumptions believed to be reasonable at the time.
SECTION 4.12. Use of Credit. Neither the Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in
the business of extending credit for the purpose, whether immediate, incidental
or ultimate, of buying or carrying Margin Stock, and
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no part of the proceeds of any extension of credit hereunder will be used to buy
or carry any Margin Stock.
SECTION 4.13. Indebtedness and Liens.
(a) Material Indebtedness. Schedule 4.13(a) is a complete and correct list
of each credit agreement, loan agreement, indenture, purchase agreement,
guarantee, letter of credit or other arrangement providing for or otherwise
relating to any Indebtedness or any extension of credit (or commitment for any
extension of credit) to, or guarantee by, the Borrower or any of its
Subsidiaries outstanding on the date hereof the aggregate principal or face
amount of which equals or exceeds (or may equal or exceed) $5,000,000, and the
aggregate principal or face amount outstanding or that may become outstanding
under each such arrangement is correctly described in Schedule 4.13(a).
(b) Liens. Schedule 4.13(b) is a complete and correct list of each Lien
securing Indebtedness of any Person outstanding on the date hereof the aggregate
principal or face amount of which equals or exceeds (or may equal or exceed)
$1,000,000 and covering any property of the Borrower or any of its Subsidiaries,
and the aggregate Indebtedness secured (or that may be secured) by each such
Lien and the property covered by each such Lien is correctly described in
Schedule 4.13(b).
(c) Film Cash Payments. Schedule 4.13(c) is a complete and correct list
setting forth for the aggregate Film Cash Payments to be made in each fiscal
year during the period commencing on January 1, 1998 through and including
December 31, 2005.
(d) Interest Rate Protection Agreements. Schedule 4.13(d) is a complete and
correct list, as of the date hereof, of each Interest Rate Protection Agreement
in respect of a notional principal amount which equals or exceeds (or may equal
or exceed) $1,000,000.
SECTION 4.14. Capitalization. Set forth in Schedule 4.14 is a complete and
correct list of all of the authorized capital stock of the Borrower specifying
the number of outstanding shares thereof on the date hereof and the number of
such shares owned by the Xxxxx Brothers. All of the authorized and outstanding
and issued shares of capital stock of the Borrower are fully paid and
nonassessable. Except as set forth in Schedule 4.14, there are (y) no
outstanding Equity Rights with respect to the Borrower and (z) no outstanding
obligations of the Borrower or any of its Subsidiaries to repurchase, redeem, or
otherwise acquire any shares of capital stock of the Borrower nor are there any
outstanding obligations of the Borrower or any of its Subsidiaries to make
payments to any Person, such as "phantom stock" payments, where the amount
thereof is calculated with reference to the fair market value or equity value of
the Borrower or any of its Subsidiaries.
SECTION 4.15. Subsidiaries and Investments.
(a) Subsidiaries. Set forth in Schedule 4.15(a) is a complete and correct
list of all of the Subsidiaries of the Borrower as of the date hereof, together
with, for each such Subsidiary,
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(i) the jurisdiction of organization of such Subsidiary, (ii) each Person
holding ownership interests in such Subsidiary and (iii) the nature of the
ownership interests held by each such Person and the percentage of ownership of
such Subsidiary represented by such ownership interests. Each of the Borrower
and its Subsidiaries owns, free and clear of Liens (other than Liens created
pursuant to the Security Agreement), and has the unencumbered right to vote, all
outstanding ownership interests in each Person shown to be held by it in
Schedule 4.15(a), all of the issued and outstanding capital stock of each such
Person organized as a corporation is validly issued, fully paid and
nonassessable, and there are no outstanding Equity Rights with respect to such
Person.
(b) Investments. Set forth in Schedule 4.15(b) is a complete and correct
list of all Investments (other than Investments disclosed in Schedule 4.15(a)
and other than Investments of the types referred to in clauses (b), (c), (e) and
(f) of Section 7.07) in an amount exceeding $1,000,000 held by the Borrower or
any of its Subsidiaries in any Person on the date hereof and, for each such
Investment, (x) the identity of the Person or Persons holding such Investment
and (y) the nature of such Investment. Except as disclosed in Schedule 4.15(b),
each of the Borrower and its Subsidiaries owns, free and clear of all Liens
(other than Liens created pursuant to the Security Agreement), all such
Investments.
(c) Subsidiaries Not Subject to Certain Restrictions. None of the
Subsidiaries of the Borrower is, on the date hereof, subject to any indenture,
agreement, instrument or other arrangement of the type prohibited under Section
7.10.
SECTION 4.16. Broadcast Licenses
(a) Schedule 4.16 accurately and completely lists, as of the date hereof,
for each Owned Station, all Broadcast Licenses granted or assigned to the
Borrower or any of its Subsidiaries, or under which the Borrower and its
Subsidiaries have the right to operate such Owned Station. The Broadcast
Licenses listed in Schedule 4.16 with respect to any Owned Station include all
material authorizations, licenses and permits issued by the FCC that are
required or necessary for the operation of such Owned Station, and the conduct
of the business of the Borrower and its Subsidiaries with respect to such Owned
Station, as now conducted or proposed to be conducted. The Broadcast Licenses
listed in Schedule 4.16 are issued in the name of the respective License
Subsidiary for the Owned Station being operated under authority of such
Broadcast Licenses and are on the date hereof validly issued and in full force
and effect, and the Borrower and its Subsidiaries have fulfilled and performed
in all material respects all of their obligations with respect thereto and have
full power and authority to operate thereunder.
(b) Schedule 4.16 accurately and completely lists, as of the date hereof,
for each Contract Station, all Broadcast Licenses granted or assigned to the
Material Third-Party Licensee for such Contract Station, or under which the
Material Third-Party Licensee for such Contract Station has the right to operate
such Contract Station. The Broadcast Licenses listed in Schedule 4.16 with
respect to any Contract Station include all material authorizations, licenses
and permits issued by the FCC that are required or necessary for the operation
of such Contract Station, and the conduct of the business of the Material
Third-Party Licensee for such Contract
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Station with respect to such Contract Station, as now conducted or proposed to
be conducted. The Broadcast Licenses listed in Schedule 4.16 are issued in the
name of the Material Third-Party Licensee for the Contract Station being
operated under authority of such Broadcast Licenses and are on the date hereof
validly issued and in full force and effect, and the Material Third-Party
Licensee for such Contract Station has fulfilled and performed in all material
respects all of its obligations with respect thereto and has full power and
authority to operate thereunder.
SECTION 4.17. Ancillary Documents. The Borrower has heretofore delivered to
the Administrative Agent a true and complete copy of the Ancillary Documents, in
each case as in effect on the date hereof, and each of the same is in full force
and effect and no default of any Obligor party thereto of any of the provisions
thereof is in existence on the date hereof.
SECTION 4.18. Program Services Agreements. Schedule 4.18 is a complete and
correct list, as of the date of this Agreement, of each agreement pursuant to
which the Borrower or any of its Subsidiaries has the right to program and sell
advertising on a substantial portion of the inventory of broadcast time of any
Station.
SECTION 4.19. Options. Schedule 4.19 is a complete and correct list, as of
the date of this Agreement, of each option agreement pursuant to which the
Borrower or any of its Subsidiaries has the right to acquire licenses, permits,
authorizations or certificates to construct, own, operate or promote any
television or radio broadcasting station.
SECTION 4.20. Asset Use and Operating Agreements. Schedule 4.20 is a
complete and correct list, as of the date of this Agreement, with respect to
each Owned Station, of the agreement between the Subsidiary of the Borrower that
operates such Owned Station and a License Subsidiary with respect to such Owned
Station.
SECTION 4.21. Solvency. As of the date hereof (and after giving effect to
the extensions of credit hereunder and to the other transactions contemplated
hereby), (i) the aggregate value of all properties of the Borrower and its
Subsidiaries at their present fair saleable value (i.e., the amount that may be
realized within a reasonable time, considered to be six to eighteen months,
either through collection or sale at the regular market value, conceiving the
latter as the amount that could be obtained for the properties in question
within such period by a capable and diligent businessman from an interested
buyer who is willing to purchase under ordinary selling conditions), exceeds the
amount of all the debts and liabilities (including contingent, subordinated,
unmatured and unliquidated liabilities) of the Borrower and its Subsidiaries,
(ii) the Borrower and its Subsidiaries will not, on a consolidated basis, have
unreasonably small capital with which to conduct their business operations as
heretofore conducted and (iii) the Borrower and its Subsidiaries will have, on a
consolidated basis, sufficient cash flow to enable them to pay their debts as
they mature.
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ARTICLE V
CONDITIONS
SECTION 5.01. Effective Date. The obligations of the Lenders to make Loans
and of the Issuing Lender to issue Letters of Credit hereunder shall not become
effective until the date on which the Administrative Agent shall have received
each of the following documents, each of which shall be satisfactory to the
Administrative Agent (and to the extent specified below, to each Lender) in form
and substance (or such condition shall have been waived in accordance with
Section 10.02):
(a) Executed Counterparts. From each party hereto either (i) a
counterpart of this Agreement signed on behalf of such party or (ii)
written evidence satisfactory to the Administrative Agent (which may
include telecopy transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement.
(b) Opinions of Counsel to the Obligors. Favorable written opinions
(addressed to the Administrative Agent and the Lenders and dated the
Effective Date) of (i) Xxxxxx & Xxxxxxxx, P.A., counsel for the Obligors,
in form and substance satisfactory to the Administrative Agent and (ii)
special communications counsel for the Borrower, in form and substance
satisfactory to the Administrative Agent (and each Obligor hereby instructs
such counsel to deliver such opinions to the Lenders and the Administrative
Agent).
(c) Opinion of Special New York Counsel to Chase. An opinion, dated
the Effective Date, of Milbank, Tweed, Xxxxxx & XxXxxx, special New York
counsel to Chase, in form and substance satisfactory to the Administrative
Agent (and Chase hereby instructs such counsel to deliver such opinion to
the Lenders).
(d) Corporate Documents. Such documents and certificates as the
Administrative Agent or its counsel may reasonably request relating to the
organization, existence and good standing of each Obligor, the
authorization of the Transactions and any other legal matters relating to
the Obligors, this Agreement or the Transactions, all in form and substance
satisfactory to the Administrative Agent and its counsel. Without limiting
the foregoing , the following evidence and documents shall be furnished,
each of which documents shall be certified as indicated below:
(i) (x) a copy of the charter, as amended, of each Obligor that
is a corporation and each general partner of each Obligor that is a
partnership (each such Obligor and general partner being referred to
as a "Relevant Corporation") certified by the Secretary of State of
its jurisdiction of incorporation, (y) a certificate as to the good
standing of and charter documents filed by such Relevant Corporation
from such Secretary of State, dated as of a recent date and (z) a
certificate as to the good standing or qualification to do business of
such Relevant Corporation from each jurisdiction in which the nature
of the business
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conducted by such Relevant Corporation makes such qualification
necessary and where failure so to qualify would have a Material
Adverse Effect;
(ii) a certificate of the Secretary or an Assistant Secretary of
each Relevant Corporation, dated the Effective Date and certifying (w)
that attached thereto is a true and complete copy of the by-laws of
such Relevant Corporation as in effect on the date of such
certificate, (x) that attached thereto is a true and complete copy of
resolutions duly adopted by the board of directors of such Relevant
Corporation authorizing the execution, delivery and performance of
such of the Loan Documents to which such Relevant Corporation and/or
the partnership of which such Relevant Corporation is a general
partner, as the case may be, is or is intended to be a party and the
extensions of credit hereunder, and that such resolutions have not
been modified, rescinded or amended and are in full force and effect,
(y) that the charter of such Relevant Corporation has not been amended
since the date of the certification thereto furnished pursuant to
clause (i) above, and (z) as to the incumbency and specimen signature
of each officer of such Relevant Corporation executing such of the
Loan Documents to which such Relevant Corporation and/or the
partnership of which such Relevant Corporation is a general partner,
as the case may be, is intended to be a party and each other document
to be delivered by such Relevant Corporation and/or the partnership of
which such Relevant Corporation is a general partner, as the case may
be, from time to time in connection therewith (and the Administrative
Agent and each Lender may conclusively rely on such certificate until
it receives notice in writing from such Relevant Corporation); and
(iii) a certificate of another officer of each Relevant
Corporation as to the incumbency and specimen signature of the
Secretary or Assistant Secretary, as the case may be, of such Relevant
Corporation.
In lieu of any of the evidence or documents referred to in the foregoing
provisions of this Section (other than Section 5.01(d)(ii)(x)) heretofore
furnished to the Administrative Agent under the Existing Credit Agreement,
the Borrower may furnish or cause to be furnished to the Administrative
Agent a certificate of the Secretary or any Assistant Secretary of the
Relevant Corporation to the effect that such evidence or documents have not
been modified since the respective dates they were so furnished and that
they remain in full force and effect on the Effective Date.
(e) Officer's Certificates. (i) A certificate, dated the Effective
Date and signed by the President, a Vice President or a Financial Officer
of the Borrower, confirming compliance with the conditions set forth in the
lettered clauses of the first sentence of Section 5.02 and (ii) a
certificate, dated the Effective Date and signed by the chief financial
officer of the Borrower, demonstrating in reasonable detail compliance with
the covenants set forth in Section 7.11 as of the Effective Date after
giving effect to the transactions contemplated to occur on or prior
thereto.
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(f) Security Agreement. The Security Agreement, duly executed and
delivered by the Borrower and certain of the other Obligors and the
Administrative Agent and the certificates identified under the name of such
Obligor in Annex 1 thereto, in each case, accompanied by undated stock
powers executed in blank. In addition, each Obligor party to the Security
Agreement shall have taken such other action (including delivering to the
Administrative Agent, for filing, appropriately completed and duly executed
copies of Uniform Commercial Code financing statements) as the
Administrative Agent shall have requested in order to perfect the security
interests created pursuant to the Security Agreement.
(g) Program Services Agreements. A certificate of a senior financial
officer of the Borrower certifying that (i) attached thereto are true and
complete copies (including all modifications and supplements) of each
Program Services Agreement to which the Borrower or any of its Subsidiaries
is a party on the Effective Date (other than Program Services Agreements
heretofore furnished to the Administrative Agent under the Existing Credit
Agreement that have not been modified since the respective dates that they
were so furnished), (ii) attached thereto is a list of all such previously
furnished Program Services Agreements to which the Borrower or any of its
Subsidiaries is a party on the Effective Date and (iii) each such Program
Services Agreement so attached or so listed is in full force and effect.
(h) Network Affiliations. A certificate of a senior financial officer
of the Borrower certifying that (i) attached thereto is a list of all
network affiliation agreements to which the Borrower or any of its
Subsidiaries is a party on the Effective Date and (ii) each such network
affiliation agreement is in full force and effect.
(i) Asset Use and Operating Agreements. A certificate of a senior
financial officer of the Borrower certifying that (i) the Borrower or
Subsidiary operating each Owned Station and the respective License
Subsidiary have executed and delivered an Asset Use and Operating Agreement
with respect to such Owned Station, (ii) attached thereto are true and
complete copies (including all modifications and supplements) of each Asset
Use and Operating Agreement to which the Borrower or any of its
Subsidiaries is a party on the Effective Date (other than Asset Use and
Operating Agreements heretofore furnished to the Administrative Agent under
the Existing Credit Agreement that have not been modified since the
respective dates that they were so furnished), (iii) attached thereto is a
list of all such previously furnished Asset Use and Operating Agreements to
which the Borrower or any of its Subsidiaries is a party on the Effective
Date and (iv) each such Asset Use and Operating Agreement so attached or so
listed is in full force and effect.
(j) Solvency Analysis. A certificate of a senior financial officer of
the Borrower certifying that, as of the Effective Date and after giving
effect to the initial extension of credit hereunder and to the other
transactions contemplated hereby, (i) the aggregate value of all properties
of the Borrower and its Subsidiaries at their present fair saleable value
(i.e., the amount which may be realized within a reasonable time,
considered to be
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six to eighteen months, either through collection or sale at the regular
market value, conceiving the latter as the amount which could be obtained
for the properties in question within such period by a capable and diligent
businessman from an interested buyer who is willing to purchase under
ordinary selling conditions), exceeds the amount of all the debts and
liabilities (including contingent, subordinated, unmatured and unliquidated
liabilities) of the Borrower and its Subsidiaries, (ii) the Borrower and
its Subsidiaries will not, on a consolidated basis, have an unreasonably
small capital with which to conduct their business operations as heretofore
conducted and (iii) the Borrower and its Subsidiaries will have, on a
consolidated basis, sufficient cash flow to enable them to pay their debts
as they mature.
(k) Insurance. A certificate of a senior financial officer of the
Borrower setting forth the insurance obtained by it in accordance with the
requirements of Section 6.05 and stating that such insurance is in full
force and effect and that all premiums then due and payable thereon have
been paid.
(l) Existing Credit Agreement. Evidence that (i) the Borrower shall
have paid in full all principal of and interest accrued on the outstanding
loans under the Existing Credit Agreement and all fees and expenses owing
by the Borrower thereunder, (ii) all Liens securing any obligations
thereunder shall have been released (or arrangements for such release
satisfactory to the Existing Lenders shall have been made), (iii) all other
amounts (if any) payable by the Borrower under or in respect of the
Existing Credit Agreement have been paid in full, and (iv) the Commitments
(as defined in the Existing Credit Agreement) have terminated.
(m) The pro forma consolidated balance sheet of the Borrower and its
Subsidiaries set forth in the Form S-4 filed by the Borrower with the
Securities and Exchange Commission on May 5, 1998.
(n) Other Documents. Such other documents as the Administrative Agent
or any Lender or special New York counsel to Chase may reasonably request.
The obligation of any Lender to make its initial extension of credit
hereunder is also subject to the payment by the Borrower of such fees as the
Borrower shall have agreed to pay to any Lender or the Administrative Agent in
connection herewith, including the reasonable fees and expenses of Milbank,
Tweed, Xxxxxx & XxXxxx, special New York counsel to Chase, in connection with
the negotiation, preparation, execution and delivery of this Agreement and the
other Loan Documents and the extensions of credit hereunder (to the extent that
statements for such fees and expenses have been delivered to the Borrower).
The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans and of the Issuing
Lender to issue Letters of Credit hereunder shall not become effective unless
each of the foregoing conditions is satisfied (or waived pursuant to Section
10.02) on or prior to 3:00 p.m., New York City time, on May 31,
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1998 (and, in the event such conditions are not so satisfied or waived, the
Commitments shall terminate at such time).
SECTION 5.02. Each Credit Event. The obligation of each Lender to make a
Loan on the occasion of any Borrowing, and of the Issuing Lender to issue,
amend, renew or extend any Letter of Credit, is subject to the satisfaction of
the following conditions:
(a) the representations and warranties of the Borrower set forth in
this Agreement, and of each Obligor in each of the other Loan Documents to
which it is a party, shall be true and correct on and as of the date of
such Borrowing or the date of issuance, amendment, renewal or extension of
such Letter of Credit, as applicable (or, if any such representation and
warranty is expressly stated to have been made as of a specific date, as of
such specific date);
(b) at the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter
of Credit, as applicable, no Default shall have occurred and be continuing;
and
(c) the Borrower shall be in compliance with the terms and conditions
of each of the Senior Subordinated Note Indentures.
Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit shall be deemed to constitute a representation and warranty by the
Borrower on the date thereof as to the matters specified in the preceding
sentence.
SECTION 5.03. Each Incremental Term Loan. The obligation of each
Incremental Term Lender to make an Incremental Term Loan is subject to the
satisfaction of the following additional conditions:
(a) after giving pro forma effect to making of such Incremental Term
Loan, the Borrower shall be in compliance with each of the covenants set
forth in Section 7.11; and
(b) receipt by the respective Incremental Term Loan Lender and the
Administrative Agent of a certificate, dated the date of such Incremental
Term Loan and signed by the President, a Vice President or a Financial
Officer of the Borrower, demonstrating in reasonable detail compliance with
the foregoing clause (a) of this Section.
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ARTICLE VI
AFFIRMATIVE COVENANTS
Until the Commitments have expired or been terminated and the principal of
and interest on each Loan and all fees payable hereunder shall have been paid in
full and all Letters of Credit shall have expired or terminated and all LC
Disbursements shall have been reimbursed, the Borrower covenants and agrees with
the Lenders that:
SECTION 6.01. Financial Statements and Other Information. The Borrower will
furnish to the Administrative Agent (with sufficient copies for each Lender):
(a) within 110 days after the end of each fiscal year of the Borrower,
the audited consolidated balance sheet and related statements of
operations, stockholders' equity and cash flows of the Borrower and its
Subsidiaries as of the end of and for such year, setting forth in each case
in comparative form the figures for the previous fiscal year, all reported
on by Xxxxxx Xxxxxxxx & Company or other independent public accountants of
recognized national standing (without a "going concern" or like
qualification or exception and without any qualification or exception as to
the scope of such audit) to the effect that such consolidated financial
statements present fairly in all material respects the financial condition
and results of operations of the Borrower and its Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied;
(b) within 50 days after the end of each of the first three fiscal
quarters of each fiscal year of the Borrower, the consolidated balance
sheet and related statements of operations, stockholders' equity and cash
flows of the Borrower and its Subsidiaries as of the end of and for such
fiscal quarter and the then elapsed portion of the fiscal year, setting
forth in each case in comparative form the figures for (or, in the case of
the balance sheet, as of the end of) the corresponding period or periods of
the previous fiscal year, all certified by a Financial Officer of the
Borrower as presenting fairly in all material respects the financial
condition and results of operations of the Borrower and its Subsidiaries on
a consolidated basis in accordance with GAAP consistently applied, subject
to normal year-end audit adjustments and the absence of footnotes;
(c) concurrently with any delivery of financial statements under
clause (a) or (b) of this Section, a certificate of a Financial Officer of
the Borrower (i) certifying as to whether a Default has occurred and, if a
Default has occurred, specifying the details thereof and any action taken
or proposed to be taken with respect thereto, (ii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 7.01(i)
through (m), 7.08 and 7.11, and (iii) stating whether any change in GAAP or
in the application thereof has occurred since the date of the audited
financial statements referred to in Section 4.04 and, if any such change
has occurred, specifying the effect of such change on the financial
statements accompanying such certificate;
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(d) concurrently with any delivery of financial statements under
clause (a) of this Section, a certificate of the accounting firm that
reported on such financial statements stating whether they obtained
knowledge during the course of their examination of such financial
statements of any Default (which certificate may be limited to the extent
required by accounting rules or guidelines);
(e) promptly after the same become publicly available, copies of all
periodic and other reports (including, without limitation, reports on Forms
10-Q and 10-K), proxy statements and other materials filed by the Borrower
or any of its Subsidiaries with the Securities and Exchange Commission, or
any Governmental Authority succeeding to any or all of the functions of
said Commission, or with any national securities exchange, or distributed
by the Borrower to its shareholders generally or to the holders of any
class or issue of securities of the Borrower generally, as the case may be,
and promptly upon the receipt thereof by the Borrower, copies of any
notices, reports or other communications from any holder of any Preferred
Stock or any Senior Subordinated Notes (or any agent or trustee therefor);
(f) promptly upon their becoming available, copies of any and all
periodic or special reports filed by the Borrower or any of its
Subsidiaries with the FCC or with any other Federal, state or local
governmental authority, if such reports indicate any material adverse
change in the business, operations, affairs or condition of the Borrower or
any of its Subsidiaries or if copies thereof are requested by any Lender or
the Administrative Agent, and copies of any and all material notices and
other material communications from the FCC or from any other Federal, state
or local governmental authority with respect to the Borrower, any of its
Subsidiaries or any Station;
(g) promptly following delivery thereof to or by the Borrower or any
of its Subsidiaries, copies of all material notices (including, without
limitation, notices of default), financial statements, reports, approvals
and other material communications that are received by the Borrower or any
of its Subsidiaries from or on behalf of any Material Third-Party Licensee
or Affiliate of any Material Third-Party Licensee or furnished by the
Borrower or any of its Subsidiaries to any Material Third-Party Licensee or
Affiliate of any Material Third-Party Licensee;
(h) as soon as available and in any event on or before December 31 of
each fiscal year, a budget for the next following fiscal year setting forth
anticipated income, expense and capital expenditure items for each quarter
during such fiscal year;
(i) promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of the
Borrower or any of its Subsidiaries, any Station (including, without
limitation, copies of network affiliation agreements entered into by such
Station), any Material Third-Party Licensee or any Person that owns the
capital stock (or other equity ownership interest) of any Material
Third-Party Licensee, or compliance with the terms of this Agreement and
the other Loan Documents, as the Administrative Agent or any Lender may
reasonably request; and
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(j) at the time it furnishes each set of financial statements pursuant
to clause (a) or (b) of this Section, financial statements (excluding
statements of cash flows until the Borrower designates an Unrestricted
Subsidiary after the date hereof) for each of (i) the Borrower and its
Subsidiaries (excluding Unrestricted Subsidiaries) and (ii) the
Unrestricted Subsidiaries, in each case having the same scope, detail and
information, covering the same periods of time, and accompanied by a
corresponding certificate of a senior financial officer of the Borrower and
(in lieu of an opinion letter) an audit review letter of independent
certified public accountants of recognized national standing, as the case
may be, as said financial statements delivered pursuant to said clause (a)
or (b), as though each reference in said clause (a) or (b) to "the Borrower
and its Subsidiaries" were a reference to "the Borrower and its
Subsidiaries (excluding Unrestricted Subsidiaries)" or the "Unrestricted
Subsidiaries", as the case may be.
SECTION 6.02. Notices of Material Events. The Borrower will furnish to the
Administrative Agent prompt written notice of the following:
(a) the occurrence of any Default;
(b) the filing or commencement of any action, suit or proceeding by or
before any arbitrator or Governmental Authority against or affecting the
Borrower or any of its Subsidiaries or any of their respective assets,
franchises or licenses (including, without limitation, the Broadcast
Licenses for Owned Stations) that, if adversely determined, could
reasonably be expected to result in a Material Adverse Effect, or against
or affecting any Material Third-Party Licensee for a Contract Station or
any Broadcast License for such Contract Station that, if adversely
determined, could reasonably be expected to result in a Material Adverse
Effect or the loss of any Broadcast License (other than an Immaterial
Broadcast License) for such Contract Station;
(c) the occurrence of any ERISA Event that, alone or together with any
other ERISA Events that have occurred, could reasonably be expected to
result in liability of the Borrower and its Subsidiaries (including
Unrestricted Subsidiaries) in an aggregate amount exceeding $25,000,000;
(d) the assertion of any environmental matter by any Person against,
or with respect to the activities of, the Borrower or any of its
Subsidiaries and any alleged violation of or non-compliance with any
Environmental Laws or any permits, licenses or authorizations, other than
any environmental matter or alleged violation that could reasonably be
expected to result in liability of the Borrower and its Subsidiaries
(including Unrestricted Subsidiaries) in an aggregate amount exceeding
$25,000,000; and
(e) any other development that results in, or could reasonably be
expected to result in, a Material Adverse Effect.
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Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.
SECTION 6.03. Existence; Conduct of Business. The Borrower will, and will
cause each of its Subsidiaries to, do or cause to be done all things necessary
to preserve, renew and keep in full force and effect its legal existence and the
rights, licenses, permits, privileges and franchises (including, without
limitation, the Broadcast Licenses, but excluding Immaterial Broadcast Licenses,
for Owned Stations); provided that the foregoing shall not prohibit any merger,
consolidation, liquidation or dissolution permitted under Section 7.03.
SECTION 6.04. Payment of Obligations. The Borrower will, and will cause
each of its Subsidiaries to, pay its obligations, including Tax liabilities,
that, if not paid, could result in a Material Adverse Effect before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary has set aside on its books adequate reserves with
respect thereto in accordance with GAAP and (c) the failure to make payment
pending such contest could not reasonably be expected to result in a Material
Adverse Effect.
SECTION 6.05. Maintenance of Properties; Insurance. The Borrower will, and
will cause each of its Subsidiaries to, (a) keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted, and (b) maintain, with financially sound and
reputable insurance companies, insurance in such amounts and against such risks
as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations, provided that the
Borrower will in any event maintain (with respect to itself, each of its
Subsidiaries and each Owned Station), and will use its reasonable best efforts
to cause the Material Third-Party Licensee for each Contract Station (or the
Person that owns the capital stock (or other equity ownership interest) of such
Material Third-Party Licensee) to maintain (with respect to itself and such
Contract Station), casualty insurance and insurance against claims and damages
with respect to defamation, libel, slander, privacy or other similar injury to
person or reputation (including, without limitation, misappropriation of
personal likeness), in such amounts as are then customary for Persons engaged in
the same or similar business similarly situated. The Borrower shall provide to
the Administrative Agent at the same time it furnishes its annual financial
statements under Section 6.01(a) a certificate of insurance comparable in scope
to the certificate furnished under Section 5.01(k) demonstrating compliance with
this Section.
SECTION 6.06. Books and Records; Inspection Rights. The Borrower will, and
will cause each of its Subsidiaries to, keep proper books of record and account
in which full, true and correct entries are made of all dealings and
transactions in relation to its business and activities. The Borrower will, and
will cause each of its Subsidiaries to, permit any representatives designated by
the Administrative Agent or any Lender, upon reasonable prior notice, to visit
and inspect its properties, to examine and make extracts from its books and
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records, and to discuss its affairs, finances and condition with its officers
and independent accountants, all at such reasonable times and as often as
reasonably requested.
SECTION 6.07. Compliance with Laws. The Borrower will, and will cause each
of its Subsidiaries to, comply with all laws, rules, regulations and orders of
any Governmental Authority applicable to it or its property, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.
SECTION 6.08. Use of Proceeds and Letters of Credit. The proceeds of the
Revolving Loans and the Term Loans will be used only (a) to repay loans
outstanding under the Existing Credit Agreement and to pay fees and expenses in
connection herewith and therewith, (b) to finance the Acquisitions and to pay
transaction costs in connection therewith and (c) for its and its Subsidiaries'
general corporate purposes including, without limitation, Capital Expenditures,
Acquisitions and Investments to the extent permitted hereunder (in compliance
with all applicable legal and regulatory requirements). Letters of Credit will
be issued only for general corporate purposes of the Borrower and its
Subsidiaries as specified above. The proceeds of the Incremental Term Loans will
be used only to finance Other Acquisitions and to pay transaction costs in
connection therewith. Neither the Administrative Agent nor any Lender shall have
any responsibility as to the use of any of proceeds of any Loan. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board,
including Regulations U and X.
SECTION 6.09. Hedging Agreements.
(a) The Borrower will obtain and maintain in full force and effect from the
date not later than the 45th day after the Effective Date until no sooner than
the second anniversary of the Effective Date one or more Interest Rate
Protection Agreements with one or more of the Lenders (and/or with a bank or
other financial institution having capital, surplus and undivided profits of at
least $500,000,000), which (together with the fixed interest rates on the Senior
Subordinated Notes) effectively enables the Borrower (in a manner satisfactory
to the Administrative Agent), as at any date, to protect itself against
three-month London interbank offered rates plus the respective Applicable Rates
for Eurodollar Loans in effect at the time such Interest Rate Protection
Agreements are obtained exceeding 10% per annum as to a notional principal
amount from time to time determined as follows: the sum of such notional
principal amount and the aggregate principal amount of the Indebtedness under
the Senior Subordinated Note Indentures with a fixed rate of interest less than
or equal to 10% per annum scheduled to be outstanding from time to time when
expressed as a percentage of the sum of the aggregate principal or face amount
of the Loans and the Senior Subordinated Notes scheduled to be outstanding from
time to time is at least equal to 60%.
(b) Subject to compliance with the requirements of the foregoing paragraph
(a), the Borrower shall be permitted to modify the provisions of any Interest
Rate Protection Agreement with the consent of the Administrative Agent.
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SECTION 6.10. Certain Obligations Respecting Subsidiaries.
(a) Subsidiary Guarantors. The Borrower will take such action, and will
cause each of its Subsidiaries to take such action, from time to time as shall
be necessary to ensure that all Subsidiaries of the Borrower (other than any
Excluded Subsidiary) are "Subsidiary Guarantors" hereunder. Without limiting the
generality of the foregoing, in the event that the Borrower or any of its
Subsidiaries shall form or acquire any new Subsidiary that shall constitute a
Subsidiary hereunder, the Borrower and its Subsidiaries will cause such new
Subsidiary to (i) become a "Subsidiary Guarantor" hereunder, and (if applicable)
an "Obligor" under the Security Agreement pursuant to a Guarantee Assumption
Agreement, (ii) to deliver certificates (if any) of ownership interests of any
Subsidiaries of such new Subsidiary in each case accompanied by undated stock
powers executed in blank and (iii) deliver such proof of corporate action,
incumbency of officers, opinions of counsel and other documents as is consistent
with those delivered by each Obligor pursuant to Section 5.01 on the Effective
Date or as the Administrative Agent shall have requested.
(b) Ownership of Subsidiaries. The Borrower will, and will cause each of
its Subsidiaries to, take such action from time to time as shall be necessary to
ensure that each of its Subsidiaries is a Wholly Owned Subsidiary. In the event
that any additional shares of stock or other ownership interests shall be issued
by any Subsidiary, the respective Obligor agrees forthwith to deliver to the
Administrative Agent pursuant to the Security Agreement the certificates (if
any) evidencing such shares of stock or other ownership interests, accompanied
by undated stock powers executed in blank and to take such other action as the
Administrative Agent shall request to perfect the security interest created
therein pursuant to the Security Agreement.
ARTICLE VII
NEGATIVE COVENANTS
Until the Commitments have expired or terminated and the principal of and
interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall
have been reimbursed, the Borrower covenants and agrees with the Lenders that:
SECTION 7.01. Indebtedness. The Borrower will not, nor will it permit any
of its Subsidiaries to, create, incur, assume or permit to exist any
Indebtedness, except:
(a) Indebtedness to the Lenders hereunder;
(b) Indebtedness outstanding on the date hereof;
(c) Indebtedness of the Borrower evidenced by senior subordinated
notes and subordinated guarantees thereof by Subsidiary Guarantors issued
after the date hereof
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(such Indebtedness and guarantees being collectively referred to as the
"Additional Senior Subordinated Notes"), provided that (i) such notes are
issued at not less than 97% of par, (ii) such notes and guarantees shall be
unsecured and such notes shall bear interest at a fixed rate not greater
than 12% per annum on the face amount thereof, (iii) no scheduled payments,
prepayments, redemptions or sinking fund or like payments on such notes
shall be required before the tenth anniversary of the date of issuance of
such notes, (iv) the terms and conditions of such notes (other than the
amount of any optional redemption premium and the non-call period) shall
not be less favorable to the Borrower, its Subsidiaries, the Lenders and
the Administrative Agent than the terms and conditions of the 1997
(December) Senior Subordinated Note Indenture, and the terms of
subordination thereof shall also extend to cover obligations of the
Borrower and its Subsidiaries in respect of any Hedging Agreements to which
the Borrower and any of the Lenders and their respective Affiliates are
parties and (v) no Default shall have occurred and be continuing at the
time of incurrence of such Indebtedness or would result therefrom;
(d) Indebtedness of the Borrower evidenced by senior subordinated
notes and subordinated guarantees thereof by Subsidiary Guarantors (such
Indebtedness and guarantees being collectively referred to as the
"Converted Senior Subordinated Notes"), provided that (i) such notes and
guarantees shall be unsecured and such notes shall bear interest at a fixed
rate not greater than 15% per annum, (ii) no scheduled payments,
prepayments, redemptions or sinking fund or like payments on such notes
shall be required before the tenth anniversary of the date of issuance of
the Other Preferred Stock, (iii) the terms and conditions of such notes
shall not be less favorable to the Borrower, its Subsidiaries, the Lenders
and the Administrative Agent than the terms and conditions of the 1997
(December) Senior Subordinated Note Indenture, and the terms of
subordination thereof shall also extend to cover obligations of the
Borrower and its Subsidiaries in respect of any Hedging Agreements to which
the Borrower and any Lender are parties, (iv) the Borrower shall issue such
notes pursuant to the conversion of all, but not less than all, of the
Other Preferred Stock into such notes in an aggregate principal amount not
exceeding the aggregate liquidation preference of the Other Preferred Stock
so converted and (v) both immediately prior to such conversion of the Other
Preferred Stock and, after giving pro forma effect thereto, no Default
shall have occurred and be continuing;
(e) Indebtedness of Subsidiaries of the Borrower to the Borrower or to
other Subsidiaries of the Borrower;
(f) Subordinated Film Indebtedness of the Borrower and its
Subsidiaries in an aggregate principal amount not exceeding $30,000,000 at
any one time outstanding, provided that the terms and conditions of each
agreement or instrument evidencing or governing such Indebtedness shall be
satisfactory to the Administrative Agent;
(g) Guarantees of Indebtedness of Gerstell Development Limited
Partnership, a Maryland limited partnership, incurred in connection with
property used by the Borrower
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and its Subsidiaries in an aggregate principal amount (including all such
Indebtedness, if any, permitted by Section 7.01(b)) not exceeding
$2,000,000 at any one time outstanding;
(h) Indebtedness of the Borrower owing to any of the Designated HYTOPs
Subsidiaries that is subordinated on terms satisfactory to the
Administrative Agent to the obligations of the Borrower hereunder, under
the notes (if any) issued as provided in Section 2.08(g) and under any
Hedging Agreements to which the Borrower and any of the Lenders and their
respective Affiliates are parties;
(i) Guarantees by one or more of the Obligors of the obligations of
other Persons (including, without limitation, Affiliates); provided that
the aggregate principal amount of Indebtedness so guaranteed may not exceed
$75,000,000 at any one time outstanding;
(j) Indebtedness (including Indebtedness of the Receivables
Subsidiary) incurred in connection with any Receivables Financing on terms
satisfactory to the Administrative Agent, provided that after giving effect
thereto the aggregate face amount of Receivables of the Borrower and its
Subsidiaries (other than any Receivables Subsidiary) that have not been
sold or financed shall be at least $150,000,000;
(k) off-balance sheet Indebtedness incurred by the Borrower or any of
its Subsidiaries to finance equipment on terms satisfactory to the
Administrative Agent; provided that the aggregate principal amount of such
Indebtedness may not exceed $100,000,000 at any one time outstanding;
(l) (i) Indebtedness of the Borrower to Xxxxxxxx Broadcast Holdings,
Inc. in an aggregate principal amount not to exceed $225,000,000, provided
that such Indebtedness is entered into contemporaneously with and solely
for the purpose of consummation of the Xxxxxxxx Acquisition and is paid in
full substantially simultaneously with the issuance thereof; and (ii) from
and after the consummation of the Xxxxxxxx Acquisition, the Xxxxxxxx Senior
Notes in an aggregate principal amount not exceeding $25,000,000 at any one
time outstanding; and
(m) additional unsecured Indebtedness of the Borrower in an aggregate
principal amount not exceeding $100,000,000 at any one time outstanding,
provided that no Default shall have occurred and be continuing at the time
of incurrence of such Indebtedness or would result therefrom.
SECTION 7.02. Liens. The Borrower will not, nor will it permit any of its
Subsidiaries to, create, incur, assume or permit to exist any Lien on any
property or asset now owned or hereafter acquired by it, or assign or sell any
income or revenues (including accounts receivable) or rights in respect of any
thereof, except:
(a) Liens created pursuant to the Security Agreement;
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(b) Liens imposed by any governmental authority for taxes, assessments
or charges not yet due or which are being contested in good faith and by
appropriate proceedings if adequate reserves with respect thereto are
maintained on the books of the Borrower or any of its Subsidiaries, as the
case may be, in accordance with GAAP;
(c) carriers', warehousemen's, mechanics', materialmen's, repairmen's
or other like Liens arising in the ordinary course of business which are
not overdue for a period of more than 30 days or which are being contested
in good faith and by appropriate proceedings and Liens securing judgments
but only to the extent for an amount and for a period not resulting in an
Event of Default under clause (j) of Article VIII;
(d) pledges or deposits under worker's compensation, unemployment
insurance and other social security legislation;
(e) deposits to secure the performance of bids, trade contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in
the ordinary course of business;
(f) easements, rights-of-way, restrictions and other similar
encumbrances incurred in the ordinary course of business and encumbrances
consisting of zoning restrictions, easements, licenses, restrictions on the
use of property or minor imperfections in title thereto which, in the
aggregate, are not material in amount, and which do not in any case
materially detract from the value of the property subject thereto or
interfere with the ordinary conduct of the business of the Borrower or any
of its Subsidiaries;
(g) Liens on the capital stock of Glencairn owned by Xxxxxxx X. Xxxxx
acquired by the Borrower or any of its Subsidiaries pursuant to the
exercise of the Glencairn Options, to the extent such Liens are in
existence on the date of such acquisition;
(h) Liens on the property of the Obligors securing Guarantees referred
to in Section 7.01(i), provided that the aggregate Indebtedness secured
thereby shall not exceed $45,000,000 at any one time outstanding;
(i) Liens resulting from the defeasance (but only to extent permitted
under Section 7.12) of the Indebtedness under the Senior Subordinated Note
Indentures in accordance therewith;
(j) Liens upon real and/or personal property existing on the date
hereof, provided that the aggregate Indebtedness and/or other obligations
secured thereby shall not exceed $15,000,000;
(k) additional Liens upon real and/or personal property created after
the date hereof, provided that the aggregate Indebtedness and/or other
obligations secured thereby
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and incurred on and after the date hereof shall not exceed $5,000,000 in
the aggregate at any one time outstanding;
(l) Liens (if any) created in connection with any Receivables
Financing permitted under Section 7.01(j); and
(m) any extension, renewal or replacement of the foregoing, provided,
however, that the Liens permitted hereunder shall not be spread to cover
any additional Indebtedness or property (other than a substitution of like
property).
SECTION 7.03. Mergers, Consolidations, Etc. The Borrower will not, nor will
it permit any of its Subsidiaries to, enter into any transaction of merger or
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), except:
(a) any Subsidiary (other than a License Subsidiary) may be merged or
consolidated with or into any other Subsidiary (other than a License
Subsidiary); provided that:
(i) if any such transaction shall be between a Subsidiary and a
Wholly Owned Subsidiary, the Wholly Owned Subsidiary shall be the
continuing or surviving entity;
(ii) if any such transaction shall be between a Subsidiary
Guarantor and a Subsidiary not a Subsidiary Guarantor, and such
Subsidiary Guarantor is not the continuing or surviving entity, then
the continuing or surviving entity shall have assumed all of the
obligations of such Subsidiary Guarantor hereunder and under the other
Loan Documents;
(b) any existing License Subsidiary may be merged or consolidated with
or into a newly formed Subsidiary of the Borrower (which may be organized
as a limited liability company), provided (i) that if such existing License
Subsidiary is not the continuing or surviving entity, then the continuing
or surviving entity shall be deemed to be a License Subsidiary and shall
have assumed all of the obligations of such Subsidiary hereunder and under
the other Loan Documents and (ii) such newly formed Subsidiary shall be in
compliance with Section 7.14; and
(c) any Subsidiary (other than a License Subsidiary) may be merged or
consolidated with or into any other Person to effect an Acquisition
permitted under Section 7.04, provided that the continuing or surviving
entity shall be a Subsidiary of the Borrower and, if not a Subsidiary
Guarantor prior to such merger or consolidation, such continuing or
surviving entity shall have assumed all of the obligations of such
Subsidiary hereunder and under the Loan Documents.
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SECTION 7.04. Acquisitions. The Borrower will not, nor will it permit any
of its Subsidiaries to, acquire any business or property from, or capital stock
of, or be a party to any acquisition of, any Person, or acquire any option to
make any such acquisition, except:
(a) purchases of inventory, programming rights and other property to
be sold or used in the ordinary course of business;
(b) Investments permitted under Section 7.07;
(c) Restricted Payments permitted under Section 7.08;
(d) Capital Expenditures of the Borrower and its Subsidiaries;
(e) the Borrower and its Subsidiaries may consummate the River City
Acquisition or may exercise the Glencairn Options, provided that (i) both
immediately prior and after giving effect to such Acquisition or exercise,
no Default shall have occurred and be continuing; and (ii) each assignment
or transfer of control of Broadcast Licenses to the Borrower or any of its
Subsidiaries shall have been approved by an Initial FCC Order (in the case
of the River City Acquisition) or a Final FCC Order (in the case of the
exercise of the Glencairn Options) (and, if the Administrative Agent or the
Required Lenders shall have so requested, the Administrative Agent shall
have received an opinion of Xxxxxx Xxxxxxx Xxxxxx Leader and Xxxxxxxx
L.L.P. (or other counsel satisfactory to the Administrative Agent or the
Required Lenders, as the case may be, in its (or their) reasonable
judgment) to the effect that such transfer shall have been so approved by
an Initial FCC Order or a Final FCC Order, as the case may be, and that
such Broadcast Licenses have been validly assigned to the Borrower or such
Subsidiary);
(f) the Borrower and its Subsidiaries may consummate each Approved
Acquisition (other than those covered by clause (e) of this Section) and
any Other Acquisition, provided that, if applicable:
(i) both immediately prior after giving effect to such
Acquisition, no Default shall have occurred and be continuing (and, in
the case of such Acquisition, the Borrower shall be in compliance with
the Total Indebtedness Ratio under Section 7.11(d), calculated on a
pro forma basis as if such Acquisition had been consummated on the
first day of the relevant period);
(ii) each assignment or transfer of control of Broadcast Licenses
to the Borrower or any of its Subsidiaries shall have been approved by
(A) an Initial FCC Order, in the case of any such Approved Acquisition
or if the aggregate consideration for any Other Acquisition and all
Other Acquisitions permitted under this clause (f) and consummated
after the date hereof which have not been approved by a Final FCC
Order is equal to or less than $200,000,000 in the aggregate or (B) a
Final FCC Order, in all other cases (and, if the Administrative Agent
or the Required Lenders shall have so requested, the Administrative
Agent
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shall have received an opinion of Xxxxxx Xxxxxxx Xxxxxx Leader and
Xxxxxxxx L.L.P. (or other counsel satisfactory to the Administrative
Agent or the Required Lenders, as the case may be, in its (or their)
reasonable judgment) to the effect that such transfer shall have been
so approved by an Initial FCC Order or a Final FCC Order, as the case
may be, and that such Broadcast Licenses have been validly assigned to
the Borrower or such Subsidiary);
(iii) at the time that the Borrower or any of its Subsidiaries
enters into a definitive purchase agreement for such Acquisition,
either:
(A) the Borrower has sufficient financing committed to it to
enable it or its Subsidiary, as the case may be, to consummate
such Acquisition or
(B) if the maximum amount of all termination, break-up and
similar fees payable by the Borrower or its Subsidiary, as the
case may be, by reason of such Acquisition failing to be
consummated were included in the calculation of Total
Indebtedness, the Borrower would be in compliance with the Total
Indebtedness Ratio on such date;
(iv) after the consummation of such Acquisition, there shall
remain unused Revolving Commitments in an aggregate amount of not less
than $25,000,000;
(v) immediately after giving effect to such Acquisition, the BCF
Percentage does not exceed 25%;
(vi) if the Aggregate Consideration for such Acquisition is equal
to or greater than $75,000,000, the Borrower shall furnish to the
Lenders a certificate showing calculations (after giving effect to
borrowings and prepayments hereunder to be made on such date and
calculated on a pro forma basis as if such Acquisition had been
consummated on the first day of the period of four fiscal quarters of
the Borrower ending on or most recently ended prior to such date) in
reasonable detail that demonstrate that such Acquisition will not
result in a Default under Section 7.11 or sub-clause (v) of this
clause (f);
(vii) if the Aggregate Consideration for such Acquisition is
equal to or greater than $75,000,000 or if the portion of the
Aggregate Consideration for such Acquisition payable to extend and
exercise any option acquired in connection with such Acquisition
exceeds 20% of the Aggregate Consideration payable in connection with
such Acquisition, no later than the date falling ten Business Days (or
such shorter period as the Administrative Agent may agree) prior to
the date that such Acquisition is consummated, the Borrower shall have
delivered to the Administrative Agent drafts or executed counterparts
of such of the respective agreements or instruments (including,
without limitation, Program Services
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Agreements) pursuant to which such Acquisition is to be consummated
(together with any related management, non-compete, employment, option
or other material agreements), any schedules or other material
ancillary documents to be executed or delivered in connection
therewith, all of which shall be satisfactory in form and substance to
the Administrative Agent;
(viii) promptly following request therefor, copies of such
information or documents relating to such Acquisition as the
Administrative Agent or any Lender (through the Administrative Agent)
shall have reasonably requested; and
(ix) if requested by the Administrative Agent with respect to any
agreement (A) entered into by any Obligor and any other Person in
connection with such Acquisition or (B) to be transferred to any
Obligor in connection with such Acquisition, which agreement is
determined by the Administrative Agent to be material and for which a
security interest is required to be granted under the Security
Documents, the Borrower shall use it reasonable best efforts to cause
such Obligor and such other Person to execute and deliver to the
Administrative Agent a Consent and Agreement with respect to such
agreement; and
(g) the acquisition of property in connection with any exchanges
permitted under Section 7.05.
SECTION 7.05. Dispositions. The Borrower will not, nor will it permit any
of its Subsidiaries to, without the prior written consent of the Required
Lenders, convey, sell, lease, transfer or otherwise dispose of, in one
transaction or a series of transactions, all or a substantial part of its
business or property, whether now owned or hereafter acquired including, without
limitation, receivables and leasehold interests, except:
(a) the Disposition of any inventory or other property in the ordinary
course of business and on ordinary business terms;
(b) the Disposition of obsolete or worn-out property, tools or
equipment no longer used or useful in its business so long as the amount
thereof sold in any single fiscal year by the Borrower and its Subsidiaries
shall not have a fair market value in excess of $10,000,000;
(c) the Borrower or any of its Subsidiaries may sell to any PSA
Counterparty the Broadcast Licenses for any Owned Station and any property
required pursuant to the rules and regulations of the FCC to be sold in
connection with the transfer of such Broadcast Licenses, provided that:
(i) any such sale shall be for an amount not less than 80% of the
appraised value of such Broadcast License and other property required
to be sold in connection with the transfer of such Broadcast License
(as determined by an appraiser satisfactory to the Administrative
Agent and the Borrower and
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experienced in the appraisal of properties similar to those being so
sold) which amount in all such cases shall be payable in cash,
(ii) such PSA Counterparty shall enter into a Program Services
Agreement with a Subsidiary of the Borrower with respect to such
Station in form and substance satisfactory to the Administrative
Agent,
(iii) after giving effect to such sale and related Program
Services Agreement, the BCF Percentage does not exceed 25%, and
(iv) such PSA Counterparty shall enter into a Consent and
Agreement with the Administrative Agent relating to such Program
Services Agreement;
(d) the Borrower or any of its Subsidiaries may dispose of
substantially all of the assets relating to any Owned Station that is a
radio broadcasting station (or the capital stock of the Subsidiary of the
Borrower that owns such assets if such Subsidiary does not own any property
relating to any other Owned Station that is a television broadcasting
station), provided that:
(i) both immediately prior and after giving effect to such
Disposition, no Default shall have occurred and be continuing; and
(ii) either:
(A) such Disposition is a sale to any Person for cash in an
amount not less than the fair market value of such assets, and
the Borrower shall promptly furnish to the Administrative Agent
copies of such information or documents relating to such
Disposition as the Administrative Agent or any Lender or Lenders
(through the Administrative Agent) shall have reasonably
requested; or
(B) such Disposition is an exchange, with any Person, of
such assets for assets owned by such Person (or the capital stock
(or other equity ownership interest) of such Person) comprising a
radio or television broadcasting station of equal or greater
value, as determined in good faith by the Board of Directors of
the Borrower or such Subsidiary and the acquisition of such
assets of such Person pursuant to such exchange shall comply with
the provisions of Section 7.04(f);
(e) the Borrower or any of its Subsidiaries may dispose of
substantially all of the assets relating to any Owned Station that is a
television broadcasting station (or the capital stock of the Subsidiary of
the Borrower that owns such assets), provided that:
(i) both immediately prior to such Disposition and, after giving
effect thereto, no Default shall have occurred and be continuing; and
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(ii) either:
(A) such Disposition is a sale to any Person for cash in an
amount not less than the fair market value of such assets and:
(1) the EBITDA Percentage attributable to such assets
together with the EBITDA Percentage attributable to all
other assets sold pursuant to this clause (A) or exchanged
pursuant to the following clause (B) during the immediately
preceding twelve-month period shall not exceed 20%,
(2) the EBITDA Percentage attributable to all assets of
the Borrower and its Subsidiaries sold pursuant to this
clause (A) or exchanged pursuant to the following clause (B)
since the Effective Date shall not exceed 50%, and
(3) the Borrower shall have furnished to the Lenders,
not later than the date falling ten Business Days (or such
shorter period as the Administrative Agent may agree) prior
to the date of such disposition a certificate in form and
detail satisfactory to the Administrative Agent stating (and
setting forth calculations in reasonable detail
demonstrating) the EBITDA Percentage attributable to the
assets so sold and promptly following request therefor,
copies of such other information or documents relating to
such disposition as the Administrative Agent or any Lender
or Lenders (through the Administrative Agent) shall have
reasonably requested; or
(B) such disposition is an exchange, with any Person, of
such assets for assets owned by such Person (or the capital stock
(or other equity ownership interest) of such Person) comprising a
television or radio broadcasting station of equal or greater
value, as determined in good faith by the Board of Directors of
the Borrower or such Subsidiary and:
(1) the EBITDA Percentage attributable to such assets
of the Borrower or such Subsidiary together with the EBITDA
Percentage attributable to all other assets of the Borrower
or any of its Subsidiaries sold pursuant to the foregoing
clause (A) or exchanged pursuant to the this clause (B)
during the immediately preceding twelve-month period shall
not exceed 20%,
(2) the EBITDA Percentage attributable to all assets of
the Borrower and its Subsidiaries sold pursuant to the
foregoing clause
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(A) or exchanged pursuant to this clause (B) since the
Effective Date shall not exceed 50%,
(3) the acquisition of such assets of such Person
pursuant to such exchange shall comply with the provisions
of Section 7.04(f), and
(4) the Borrower shall have furnished to the Lenders,
not later than the date falling ten Business Days (or such
shorter period as the Administrative Agent may agree) prior
to the date of such disposition a certificate in form and
detail satisfactory to the Administrative Agent stating (and
setting forth calculations in reasonable detail
demonstrating) the EBITDA Percentage attributable to the
assets so sold;
(f) the Borrower or any of its Subsidiaries may sell in accordance
with Section 10.4 of the Xxxxx Employment Agreement to Xxxxx Xxxxx or to
any Person designated by Xxxxx Xxxxx under said Section 10.4 the property
of the Borrower or such Subsidiary required to be so sold pursuant to said
Section 10.4, provided that any such sale shall be for cash in an amount
not less than the fair market value of the property so sold;
(g) Tuscaloosa Broadcasting, Inc. and Xxxxxxxx Radio of Norfolk
Licensee, Inc. may transfer any property used or useful in the operation of
WVCL-FM, WGH-AM and WGH-FM to Norfolk Trust, and Norfolk Trust may
thereafter re-transfer any such property to any Wholly Owned Subsidiary of
the Borrower in accordance with the trust agreement pursuant to which
Norfolk Trust was created;
(h) the Borrower or any of its Subsidiaries may dispose of additional
property for fair market value, provided that the aggregate fair market
value of such additional property disposed of by the Borrower and its
Subsidiaries in any fiscal year may not exceed $100,000,000;
(i) the Borrower and its Subsidiaries may transfer Receivables in
connection with any Receivables Financing permitted under Section 7.01(j);
and
(j) any Subsidiary of the Borrower may sell, lease, transfer or
otherwise dispose of any or all of its Property to the Borrower or a Wholly
Owned Subsidiary of the Borrower (other than an Excluded Subsidiary or a
Licensee Subsidiary); provided that if any such sale is by a Subsidiary
Guarantor to a Subsidiary of the Company which is not a Subsidiary
Guarantor, then such Subsidiary shall have assumed all of the obligations
of such Subsidiary Guarantor hereunder and under the other Loan Documents.
SECTION 7.06. Lines of Business. The Borrower will not, nor will it permit
any of its Subsidiaries to, engage to any substantial extent in any line or
lines of business activity other than (a) the business of owning and operating
the Stations (and related retransmission
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facilities), (b) the commercial utilization of frequencies licensed, granted or
leased to the Borrower or any of its Subsidiaries by the FCC, any other
governmental authority or any Person in connection with the television or radio
broadcasting businesses, (c) the production, development, sale, lease or other
provision of equipment and/or services to Persons engaged in the businesses
relating to those referred to in the preceding clause (b) and (d) the sale of
Receivables by the Borrower or any of its Subsidiaries pursuant to a Receivables
Financing permitted under Section 7.01(j); provided that the Borrower shall not
permit the portion of EBITDA for any twelve month period derived from the
business activity referred to in the foregoing clause (a) to be less than 85% of
EBITDA for such period.
SECTION 7.07. Investments. The Borrower will not, nor will it permit any of
its Subsidiaries to, make or permit to remain outstanding any Investments
except:
(a) operating deposit accounts with banks;
(b) Permitted Investments;
(c) Investments by the Borrower and its Subsidiaries in capital stock
of Subsidiaries of the Borrower to the extent outstanding on the date of
the financial statements of the Borrower and its Subsidiaries referred to
in Section 4.04 or required by Section 7.14 and advances by the Borrower
and its Subsidiaries to Subsidiary Guarantors in the ordinary course of
business permitted to be incurred by Section 7.01(e);
(d) Investments outstanding on the date hereof (other than Investments
permitted under clauses (a), (b) and (c) of this Section and identified in
Schedule 4.15(b));
(e) the acquisition of the capital stock of or partnership or other
equity interests in Persons or the formation of Wholly Owned Subsidiaries
of the Borrower for the acquisition of capital stock of or partnership
interests in Persons, resulting in such Persons becoming Wholly Owned
Subsidiaries of the Borrower, in each case for the purpose of enabling the
Borrower and its Subsidiaries to consummate acquisitions permitted by
Section 7.04;
(f) Guarantees by Subsidiary Guarantors of Indebtedness of the
Borrower to the extent such guarantees are permitted under Section 7.01;
(g) Guarantees permitted under Section 7.01(g);
(h) the conversion by the Borrower of the outstanding principal amount
of the WPTT Convertible Debenture into non-voting common stock of WPTT,
Inc. in accordance with the terms thereof;
(i) Investments by the Borrower in Affiliates in an amount up to but
not exceeding $200,000,000 in the aggregate, provided that no Default shall
have occurred
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and be continuing at the time of the making of such Investment or would
result therefrom;
(j) the HYTOP Guaranties;
(k) loans or capital contributions made by the Borrower to the
Designated HYTOPs Subsidiaries after the date hereof in an amount up to but
not exceeding $3,000,000 in the aggregate at any one time outstanding;
(l) Investments by the Borrower and its Subsidiaries in capital stock
of New HYTOPs Sub to the extent outstanding on the date of the consummation
of the New HYTOPs Transaction (after giving effect thereto), including,
without limitation, any such capital stock resulting from the conversion or
exchange into such capital stock of Indebtedness owing by New HYTOPs Sub to
the Borrower or any of its Subsidiaries;
(m) a cash contribution by the Borrower to the capital of New HYTOPs
Sub in an aggregate amount not exceeding 3% of the aggregate liquidation
preference of the New HYTOPs Preferred Stock, which cash contribution is
made in connection with the consummation of the New HYTOPs Transaction and
used by New HYTOPs Sub solely to purchase the common equity ownership
interests in the New HYTOPs Trust;
(n) Investments in respect of the Stainless Acquisition permitted
under Section 7.04(f);
(o) additional Investments in an amount up to but not exceeding
$200,000,000 in the aggregate, provided that no Default shall have occurred
and be continuing at the time of the making of such Investment or would
result therefrom; and
(p) Investments by the Borrower and its Subsidiaries in any
Receivables Subsidary in connection with any Receivables Financing
permitted under Section 7.01(j);
Notwithstanding anything contained herein to the contrary, the Borrower will
not, nor will it permit any of its Subsidiaries to, make any Investment in any
Unrestricted Subsidiary other than those permitted under clauses (d) and (i)
through (p) of this Section.
SECTION 7.08. Restricted Payments. The Borrower will not, nor will it
permit any of its Subsidiaries to, declare or make, or agree to pay or make,
directly or indirectly, any Restricted Payment, except that, so long as no
Default exists at the time of making such Restricted Payment or would result
therefrom:
(a) the Borrower may pay to any Person (including, without limitation,
an Affiliate) dividends in cash on its common stock in any of its fiscal
years ending after December 31, 1997, provided that (i) the aggregate
amount of such dividends paid in such fiscal year does not exceed 25% of
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Excess Cash Flow for its fiscal year immediately preceding the fiscal year
in which such dividends are paid (to the extent that such 25% of Excess
Cash Flow has not otherwise been applied by the Borrower in accordance with
the provisions of this Agreement), and (ii) such dividend may not be paid
earlier than three Business Days after the prepayment of Loans required by
Section 2.09(b)(i) in such fiscal year of payment;
(b) the Borrower may pay dividends in cash on the Preferred Stock,
provided that the Fixed Charges Ratio shall not be less than such ratio as
shall be required by Section 7.11(b) at the time of the making of such
Restricted Payment;
(c) the Borrower may pay dividends in cash on its common stock,
provided that, at the time of the making of, and after giving effect to,
such dividend, the Total Indebtedness Ratio shall not be greater than 4.00
to 1;
(d) the Borrower may make any Equity Issuance permitted by Section
7.15;
(e) the Borrower may purchase, in one transaction or a series of
transactions, its Class A Common Stock and its Class B Common Stock,
provided that the aggregate purchase price (including, without limitation,
cash payments, the principal amount of promissory notes and Indebtedness
assumed, cash payments under Hedging Agreements relating to capital stock
of the Borrower, and the fair market value of property delivered) paid,
delivered or assumed by the Borrower therefor shall not exceed
$100,000,000;
(f) the Borrower may apply the portion of the Net Available Proceeds
of any Equity Issuance (not otherwise applied as permitted under this
Agreement) to redeem Existing Preferred Stock for an aggregate redemption
price (including premium) not exceeding $100,000,000 (less any amount paid
to redeem New HYTOPs pursuant to the following clause (g)) in connection
with an optional redemption by KDSM (if it is then a Designated HYTOPs
Subsidiary) of KDSM Senior Debentures, so long as substantially
simultaneously with such redemption (i) all of the proceeds of such
redemption shall be used by KDSM to repay the KDSM Senior Debentures and
(ii) all of the proceeds of the repayment of the KDSM Senior Debentures
shall be used by Xxxxxxxx Capital to redeem the Existing HYTOPs having an
aggregate liquidation preference equal to the amount of such proceeds;
(g) the Borrower may apply the portion of the Net Available Proceeds
of any Equity Issuance (not otherwise applied as permitted under this
Agreement) to redeem New HYTOPs for an aggregate redemption price
(including premium) not exceeding $100,000,000 (less any amount paid to
redeem the Existing HYTOPs pursuant to the preceding clause (f)) in
connection with an optional redemption by New HYTOPs Sub (if it is then a
Designated HYTOPs Subsidiary) of New HYTOPs Senior Debentures, so long as
substantially simultaneously with such redemption (i) all of the proceeds
of such redemption shall be used by New HYTOPs Sub to repay the New HYTOPs
Senior Debentures and (ii) all of the proceeds of the repayment of the New
HYTOPs Senior Debentures shall be used by the New HYTOPs Sub to redeem the
preferred equity
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ownership interests in the New HYTOPs Trust having an aggregate liquidation
preference equal to the amount of such proceeds; and
(h) the Borrower may convert any Other Preferred Stock into Converted
Senior Subordinated Notes in accordance with Section 7.01(d).
Notwithstanding anything herein to the contrary, the Borrower will not, nor will
it permit any of its Subsidiaries to, purchase or redeem any Preferred Stock
except as expressly permitted by clauses (f) and (g) of this Section.
SECTION 7.09. Transactions with Affiliates. The Borrower will not, nor will
it permit any of its Subsidiaries to, sell, lease or otherwise transfer any
property or assets to, or purchase, lease or otherwise acquire any property or
assets from, or otherwise engage in any other transactions with, any of its
Affiliates, except:
(a) transactions in the ordinary course of business at prices and on
terms and conditions not less favorable to the Borrower or such Subsidiary
than could be obtained on an arm's-length basis from unrelated third
parties;
(b) transactions between or among the Borrower and its Subsidiaries
not involving any other Affiliate;
(c) any Restricted Payment permitted under Section 7.08;
(d) any Affiliate who is an individual may serve as a director,
officer or employee of the Borrower or any of its Subsidiaries and receive
reasonable compensation for his or her services in such capacity; and
(e) the Borrower may enter into and perform management agreements,
cost sharing agreements and tax sharing agreements with any of the
Designated HYTOPs Subsidiaries having terms satisfactory to the
Administrative Agent.
SECTION 7.10. Restrictive Agreements. The Borrower will not, nor will it
permit any of its Subsidiaries to, directly or indirectly, enter into, incur or
permit to exist any agreement or other arrangement that prohibits, restricts or
imposes any condition upon (a) the ability of the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets, or
(b) the ability of any Subsidiary to pay dividends or other distributions with
respect to any shares of its capital stock or to make or repay loans or advances
to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the
Borrower or any other Subsidiary; provided that (i) the foregoing shall not
apply to restrictions and conditions imposed by law or by this Agreement, (ii)
the foregoing shall not apply to restrictions and conditions existing on the
date hereof identified on Schedule 7.10 (but shall apply to any extension or
renewal of, or any amendment or modification expanding the scope of, any such
restriction or condition), (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided such restrictions
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and conditions apply only to the Subsidiary that is to be sold and such sale is
permitted hereunder, (iv) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured
Indebtedness permitted by this Agreement if such restrictions or conditions
apply only to the property or assets securing such Indebtedness and (v) clause
(a) of the foregoing shall not apply to customary provisions in leases and other
contracts restricting the assignment thereof.
SECTION 7.11. Certain Financial Covenants.
(a) Interest Coverage Ratio. The Borrower will not permit the Interest
Coverage Ratio on any date to be less than the ratio set forth below opposite
the period during which such date falls:
Period Ratio
------ -----
From the Effective
Date through September 29, 1998 1.75 to 1
From September 30, 1998
through December 30, 1998 1.80 to 1
From December 31, 1998
through December 30, 1999 1.90 to 1
From December 31, 1999
through December 30, 2000 2.00 to 1
From December 31, 2000
and at all times thereafter 2.20 to 1
(b) Fixed Charges Ratio. The Borrower will not permit the Fixed Charges
Ratio to be less than or equal to 1.05 to 1 at any time.
(c) Senior Indebtedness Ratio. The Borrower will not permit the Senior
Indebtedness Ratio on any date to be greater than the ratio set forth below
opposite the period during which such date falls:
Period Ratio
------ -----
From the Effective
Date through December 30, 2001 5.00 to 1
From December 31, 2001
through December 30, 2002 4.50 to 1
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From December 31, 2002
and at all times thereafter 4.00 to 1
(d) Total Indebtedness Ratio. The Borrower will not permit the Total
Indebtedness Ratio on any date to be greater than the ratio set forth below
opposite the period during which such date falls:
Period Ratio
------ -----
From the Effective
Date through December 30, 1998 7.00 to 1
From December 31, 1998
through December 30, 1999 6.50 to 1
From December 31, 1999
through December 30, 2000 6.25 to 1
From December 31, 2000
through December 30, 2001 6.00 to 1
From December 31, 2001
through December 30, 2002 5.50 to 1
From December 31, 2002
and at all times thereafter 5.00 to 1
(e) Film Obligations. The Borrower will not, nor will it permit any of its
Subsidiaries to, purchase, redeem, retire or otherwise acquire for value, or set
apart any money for a sinking, defeasance or other analogous fund for, the
purchase, redemption, retirement or other acquisition of, or make any voluntary
payment or prepayment of the principal of or interest on, or any other amount
owing in respect of, any Film Obligations, except for (a) regularly scheduled
payments in respect thereof required pursuant to the instruments evidencing such
Film Obligations and (b) with the consent of the Administrative Agent,
prepayments of Film Obligations not exceeding $50,000,000 in the aggregate after
the date hereof.
SECTION 7.12. Subordinated Indebtedness.
(a) The Borrower will not, nor will it permit any of its Subsidiaries to,
purchase, redeem, retire or otherwise acquire for value, or set apart any money
for a sinking, defeasance or other analogous fund for, the purchase, redemption,
retirement or other acquisition of, or make any voluntary payment or prepayment
of the principal of or interest on, or any other amount owing in respect of, any
Subordinated Indebtedness, except for (i) regularly scheduled payments of
principal and interest in respect thereof required pursuant to the instruments
evidencing such Subordinated Indebtedness, and (ii) the purchase, redemption,
retirement or other acquisition or
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defeasance of Subordinated Indebtedness, provided that (x) no Default shall have
occurred and be continuing at the time of such purchase, redemption, retirement
or other acquisition or defeasance or would result therefrom and (y) the
aggregate principal amount of all Subordinated Indebtedness so purchased,
redeemed, retired, acquired or defeased under this clause (ii), together with
the aggregate amount of Investments made as permitted under Section 7.07(o),
does not exceed the sum of $200,000,000 plus the Net Available Proceeds of any
Equity Issuance not otherwise applied as permitted under this Agreement.
(b) The Borrower will not, nor will it permit any of its Subsidiaries to,
reissue, sell, resell or otherwise transfer any of the Xxxxxxxx Notes or the
senior subordinated notes issued under any of the Senior Subordinated Note
Indentures which have been purchased, redeemed, retired, acquired or defeased by
the Borrower and its Subsidiaries.
SECTION 7.13. Modifications of Certain Documents. Without the prior written
consent of the Required Lenders, the Borrower will not, nor will it permit any
of its Subsidiaries to, consent to any modification, supplement, waiver or
termination of any of the provisions of (a) any instrument evidencing or
governing any of the Film Cash Payments unless such instrument is modified,
supplemented or waived at no cost (including, but not limited to interest costs)
to the Borrower or any of its Subsidiaries, (b) the Ancillary Documents or (c)
the HYTOP Guaranties, except that the Borrower or any of its Subsidiaries may
(i) amend any of the Asset Use and Operating Agreements entered into prior to
the date hereof to cause the same to be substantially in the form of Exhibit C,
(ii) amend any of the Program Services Agreements to extend the stated
expiration date thereof and (iii) modify or supplement any of the provisions of
the instruments or documents referred to in the foregoing clauses (a) through
(c) if (x) such modifications and supplements are not and will not be materially
adverse to the interests of the Borrower, its Subsidiaries, any Lender or the
Administrative Agent (subject to, in the case of the Subordinated Debt Documents
and clause (c), the reasonable judgment of the Administrative Agent), and (y)
the Borrower or such Subsidiary, as the case may be, shall have furnished to the
Administrative Agent (a copy of which shall be forwarded promptly to each
Lender), not later than the date falling ten Business Days (or such shorter
period as the Administrative Agent may agree) prior to the date of such
modification or supplement, a notice setting forth in reasonable detail the
terms and conditions thereof. The Borrower will not, nor will it permit any of
its Subsidiaries to, designate any Indebtedness as "Designated Senior
Indebtedness" or "Designated Guarantor Senior Indebtedness", in each case under
and as defined in any Senior Subordinated Note Indenture.
SECTION 7.14. License Subsidiaries.
(a) Whenever the Borrower or any of its Subsidiaries acquires any Broadcast
License after the Effective Date, the Borrower shall (without limiting its
obligations under Section 6.10) cause such acquisition to take place as follows
in accordance with all applicable laws and regulations, including, without
limitation, pursuant to approvals from the FCC: (i) each Broadcast License so
acquired shall be transferred to and held by a separate Wholly Owned Subsidiary
of the Borrower that is a License Subsidiary, provided that (w) the Broadcast
Licenses for one or more radio broadcasting stations serving a single "Area of
Dominant
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Influence" as determined by Arbitron Company may be held by any one or more
License Subsidiaries that do not hold any Broadcast License for any one or more
television broadcasting stations, (x) the Broadcast Licenses for WTTV-TV and
WTTK-TV may be held in a single License Subsidiary, (y) the Broadcast Licenses
for any Stations acquired pursuant to the Max Media Acquisition may be held in a
single License Subsidiary and (z) the Borrower shall only be required to use its
reasonable efforts to cause each Broadcast License acquired in the Xxxxxxxx
Acquisition to be held in a separate License Subsidiary provided that the
Borrower incurs no adverse tax consequences as a result thereof; (ii) the
related operating assets shall be transferred to and held by an operating
company that is a Subsidiary of the Borrower (an "Operating Subsidiary"); (iii)
such License Subsidiary and such Operating Subsidiary shall enter into an Asset
Use and Operating Agreement; (iv) the Borrower shall deliver or cause to be
delivered to the Administrative Agent in pledge under the Security Agreement all
capital stock, limited liability company interests or other ownership interests
of such License Subsidiary and such Operating Subsidiary; and (v) the Borrower
shall furnish to the Administrative Agent such evidence as may be reasonably
requested by the Administrative Agent or any Lender that the foregoing
transactions have been so effected.
(b) Notwithstanding anything herein to the contrary, the Borrower shall not
permit any License Subsidiary to:
(i) create, incur, assume or have outstanding any Indebtedness or
other liabilities or obligations except for obligations under the Loan
Documents and an Asset Use and Operating Agreement;
(ii) own any right, franchise or other asset except for Broadcast
Licenses transferred to it by the Borrower of which it is a Wholly Owned
Subsidiary and Broadcast Licenses acquired in the ordinary course of
business and rights under an Asset Use and Operating Agreement;
(iii) enter into any transaction of merger, consolidation or
amalgamation, or liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution);
(iv) create, incur or permit to exist any Lien (other than the Lien
created by the Security Agreement) on or in respect of, or sell, lease,
assign, transfer or otherwise dispose of, any of its rights, franchises or
other assets;
(v) engage in any business other than holding Broadcast Licenses and
entering into an Asset Use and Operating Agreement or as expressly
contemplated in such Asset Use and Operating Agreement; or
(vi) make or hold any Investment.
(c) Notwithstanding anything in this Section to the contrary, the Borrower
and the Subsidiary Guarantors shall not be obligated to effect any transaction
contrary to law or the rules, regulations or policies of the FCC, and shall be
permitted to unwind the transactions
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contemplated by this Section to the extent necessary to comply with a ruling of
the FCC; provided that the Borrower shall and shall cause each of the Subsidiary
Guarantors to use its best efforts to carry out the provisions of this Section
consistent with all laws and all rules, regulations and policies of the FCC,
including, without limitation, pursuing any necessary approval or consents of
the FCC.
(d) The Borrower will cause all Broadcast Licenses for Owned Stations at
all times to be held in the name of the respective License Subsidiary for the
Owned Station being operated under authority of such Broadcast Licenses.
SECTION 7.15. Preferred Stock. The Borrower will not effect an issuance of
any Preferred Stock, except that the Borrower may issue Other Preferred Stock,
provided that after giving effect to the issuance thereof (i) no Default shall
have occurred and be continuing and (ii) the Borrower shall be in pro forma
compliance with Section 7.11(b).
SECTION 7.16. Program Services Agreements. The Borrower will not, nor will
it permit any of its Subsidiaries to, enter into any local marketing agreement,
time brokerage agreement, program services agreement or any similar agreement
providing for:
(a) the Borrower or any of its Subsidiaries to program or sell
advertising time on all or any portion of the broadcast time of any
television or radio station; or
(b) any Person other than the Borrower or any of its Subsidiaries to
program or sell advertising time on all or any portion of the broadcast
time of any Station, except for KBLA-AM, WLAC-AM, WLAC-FM, WJZC-FM,
KKSN-AM, KKSN-FM, KKRH-FM, WBBF-AM, WBEE-FM, WKLX-FM, WQRV-FM, WNNE-TV and
WPTZ-TV.
Notwithstanding the preceding sentence, (A) the Borrower or any of its
Subsidiaries (other than License Subsidiaries) may enter into any Program
Services Agreement with any other Person (including, without limitation,
Affiliates), provided that (i) the aggregate amount payable by the Borrower and
its Subsidiaries under all Program Services Agreements during any fiscal year of
the Borrower, excluding Permitted Termination Payments (as defined in the next
sentence), shall not exceed the Maximum Amount (as defined in the next sentence)
for such fiscal year and (ii) after entering into any such Program Services
Agreement, the BCF Percentage shall not exceed 25% and (B) the Borrower or any
of its Subsidiaries may enter into any Passive LMA, provided that after giving
effect thereto the Passive BCF Percentage shall not exceed 8%. For purposes of
the preceding sentence, (i) a "Permitted Termination Payment" shall mean a
payment owing by the Borrower or any of its Subsidiaries by reason of the early
termination of a Program Services Agreement relating to any of the television
stations referred to below provided that the amount of such payment shall not
exceed the amount set forth below opposite the name of such television station:
Station Termination Payment
------- -------------------
WVTV-TV $5,500,000
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WNUV-TV $5,500,000
WRDC-TV $6,500,000
WABM-TV $7,500,000
Other $5,000,000;
(ii) the "Maximum Amount" for any fiscal year of the Borrower means (x) for its
fiscal year ending in 1998, $50,000,000 and (y) for any of its fiscal years
thereafter, an amount equal to the Maximum Amount for its preceding fiscal year
increased (or decreased, as the case may be) by the percentage of the increase
(or decrease), as the case may be) in the Consumer Price Index for all Urban
Consumers (as published by the U.S. Department of Labor) for the twelve-month
period ending in September of such preceding fiscal year; and "Other" means any
other broadcasting television station sold by the Borrower or any of its
Subsidiaries as permitted by Section 7.05(e).
SECTION 7.17. Limitation on Cure Rights. The Borrower will not, nor will it
permit any of its Subsidiaries to, enter into any agreement (a "Cure Right
Agreement") with or for the benefit of any other Person that limits the ability
of the Borrower or such Subsidiary to exercise any rights or remedies under any
agreement (an "Acquisition Agreement") pursuant to which an Acquisition is to be
consummated; provided that the Borrower or any of its Subsidiaries may enter
into or suffer to exist any Cure Right Agreement for the benefit of the lenders
to any PSA Counterparty, as the case may be, to the extent that such lenders (or
an agent on behalf of such lenders) has a security interest in the Acquisition
Agreement to which such Cure Right Agreement relates.
ARTICLE VIII
EVENTS OF DEFAULT
If any of the following events ("Events of Default") shall occur:
(a) the Borrower shall fail to pay any principal of any Loan or any
reimbursement obligation in respect of any LC Disbursement when and as the
same shall become due and payable, whether at the due date thereof or at a
date fixed for prepayment thereof or otherwise; or
(b) the Borrower shall fail to pay any interest on any Loan or any fee
or any other amount (other than an amount referred to in clause (a) of this
Article) payable under this Agreement or under any other Loan Document,
when and as the same shall become due and payable; or
(c) any representation or warranty made or deemed made by or on behalf
of the Borrower or any of its Subsidiaries in or in connection with this
Agreement or any other
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Loan Document or any amendment or modification hereof or thereof, or in any
report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement or any other Loan Document
or any amendment or modification hereof or thereof, shall prove to have
been incorrect when made or deemed made; or
(d) the Borrower shall fail to observe or perform any covenant,
condition or agreement contained in Section 6.02(a), 6.03 (with respect to
the Borrower's existence), 6.08, 6.09 or 6.10 or in Article VII or any
Obligor shall default in the performance of any of its obligations
contained in Section 4.02 or 5.02 of the Security Agreement; or
(e) any Obligor shall fail to observe or perform any covenant,
condition or agreement contained in this Agreement (other than those
specified in clause (a), (b) or (d) of this Article) or any other Loan
Document and such failure shall continue unremedied for a period of 30 or
more days after notice thereof from the Administrative Agent (given at the
request of any Lender) to the Borrower; or
(f) any of the Obligors shall default in the payment when due of any
principal of or interest on any of its other Indebtedness aggregating
$25,000,000 or more, or in the payment when due of any amount under any
Hedging Agreement for a notional principal amount exceeding $25,000,000; or
any event specified in any note, agreement, indenture or other document
evidencing or relating to any such Indebtedness or any event specified in
any Hedging Agreement shall occur if the effect of such event is to cause,
or (with the giving of any notice or the lapse of time or both) to permit
the holder or holders of such Indebtedness (or a trustee or agent on behalf
of such holder or holders) to cause, such Indebtedness to become due, or to
be prepaid in full (whether by redemption, purchase, offer to purchase or
otherwise), prior to its stated maturity or to have the interest rate
thereon reset to a level so that securities evidencing such Indebtedness
trade at level specified in relation to the par value thereof or, in the
case of a Hedging Agreement, to permit the payments owing under such
Hedging Agreement to be liquidated; or
(g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed seeking (i) liquidation, reorganization or other
relief in respect of the Borrower or any of its Subsidiaries or any
Material Third-Party Licensee or its debts, or of a substantial part of its
assets, under any Federal, state or foreign bankruptcy, insolvency,
receivership or similar law now or hereafter in effect or (ii) the
appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for the Borrower or any of its Subsidiaries or any
Material Third-Party Licensee or for a substantial part of its assets, and,
in any such case, such proceeding or petition shall continue undismissed
for a period of 60 or more days or an order or decree approving or ordering
any of the foregoing shall be entered; or
(h) the Borrower or any of its Subsidiaries or any Material
Third-Party Licensee shall (i) voluntarily commence any proceeding or file
any petition seeking liquidation, reorganization or other relief under any
Federal, state or foreign bankruptcy, insolvency, receivership or similar
law now or hereafter in effect, (ii) consent to the institution of, or
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fail to contest in a timely and appropriate manner, any proceeding or
petition described in clause (g) of this Article, (iii) apply for or
consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for the Borrower or any of its Subsidiaries
or any Material Third-Party Licensee or for a substantial part of its
assets, (iv) file an answer admitting the material allegations of a
petition filed against it in any such proceeding, (v) make a general
assignment for the benefit of creditors or (vi) take any action for the
purpose of effecting any of the foregoing; or
(i) the Borrower or any of its Subsidiaries or any Material
Third-Party Licensee shall become unable, admit in writing its inability or
fail generally to pay its debts as they become due; or
(j) one or more judgments for the payment of money in an aggregate
amount in excess of $25,000,000 shall be rendered against the Borrower or
any of its Subsidiaries or any combination thereof and the same shall
remain undischarged for a period of 30 consecutive days during which
execution shall not be effectively stayed, or any action shall be legally
taken by a judgment creditor to attach or levy upon any assets of the
Borrower or any of its Subsidiaries to enforce any such judgment; or
(k) an ERISA Event shall have occurred that, in the opinion of the
Required Lenders, when taken together with all other ERISA Events that have
occurred, could reasonably be expected to result in a Material Adverse
Effect; or
(l) the Xxxxx Brothers shall cease at any time collectively to own,
legally or beneficially, shares of stock of the Borrower representing at
least 51% of the voting power of the Borrower (other than by reason of
death or disability); or
(m) during any period of 25 consecutive calendar months, individuals
who were directors of the Borrower on the first day of such period shall no
longer constitute a majority of the board of directors of the Borrower; or
(n) the Borrower shall deliver any Change of Control Purchase Notice
(or any similar notice) under and as defined in any Senior Subordinated
Note Indenture, any Designated HYTOPs Subsidiary shall deliver any similar
notice under the indenture pursuant to which the KDSM Senior Debentures or
the New HYTOPs Senior Debentures are issued, or any event or circumstance
shall occur that results in a change of ownership or control over the board
of directors of the Borrower and that would permit the holders of the KDSM
Senior Debentures (or any of them) or any agent or trustee acting on their
behalf, or the holders of the New HYTOPs Senior Debentures (or any of them)
or any agent or trustee acting on their behalf, to exercise remedies in
respect thereof; or
(o) any Broadcast License (other than an Immaterial Broadcast License)
shall be terminated, forfeited or revoked or shall fail to be renewed for
any reason whatsoever, or shall be modified in a manner materially adverse
to the Borrower, or for any other reason (i) any License Subsidiary shall
at any time cease to be a licensee under any Broadcast
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License (other than an Immaterial Broadcast License) relating to the Owned
Station to which such Broadcast Licenses have been granted or the
Subsidiary of the Borrower that owns 100% of the capital stock of such
License Subsidiary shall otherwise fail to have all required
authorizations, licenses and permits to construct, own, operate or promote
such Owned Station, or (ii) any Material Third-Party Licensee for any
Contract Station shall fail to preserve and maintain its legal existence or
any of its material rights, privileges or franchises (including the
Broadcast Licenses (other than an Immaterial Broadcast Licenses) for such
Contract Station (other than by reason of such Contract Station becoming an
Owned Station)); or
(p) with respect to any Owned Station, the License Subsidiary with
respect to such Owned Station shall at any time cease to be a Wholly Owned
Subsidiary of the Subsidiary of the Borrower that owns the operating assets
related to the Broadcast Licenses for such Owned Station; or the Borrower
shall cease at any time to own all of the issued shares of the capital
stock of any such Subsidiary; or
(q) any transfer of any common stock of the Borrower or any of its
Subsidiaries or any right to receive such common stock or any other
interest in the Borrower or any of its Subsidiaries shall be transferred
and either (i) such transfer shall fail to comply with any applicable
provision of the Federal Communications Act of 1934, as amended from time
to time, or any applicable FCC rule, regulation or policy, or (ii) the
Administrative Agent shall not have received prior to such transfer any
opinion reasonably satisfactory to the Required Lenders of counsel
reasonably satisfactory to the Required Lenders to the effect that such
transfer does so comply; or
(r) the Liens created by the Security Agreement shall at any time not
constitute a valid and perfected Lien on the collateral intended to be
covered thereby (to the extent perfection by filing, registration,
recordation or possession is required herein or therein) in favor of the
Administrative Agent, free and clear of all other Liens (other than Liens
permitted under Section 7.02 or under the Security Agreement), or, except
for expiration in accordance with its terms, the Security Agreement shall
for whatever reason be terminated or cease to be in full force and effect,
or the enforceability thereof shall be contested by any Obligor; or
(s) any Program Services Agreement shall be terminated prior to the
stated expiration date thereof and the Obligor party thereto shall not have
entered into a substantially identical agreement relating to the Contract
Station to which such Program Services Agreement relates or any party to
any Program Services Agreement shall default in any of its obligations
thereunder and the Broadcast Cash Flow attributable to the Contract
Station(s) subject to such Program Services Agreement(s), either
individually or in the aggregate, for the most recent twelve month period
is equal to or greater than three percent of Broadcast Cash Flow for such
period; or
(t) any party to any of the Material Acquisition Documents shall
default in the performance of any of its obligations thereunder; or
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(u) there shall have been asserted against any Obligor or Unrestricted
Subsidiary an Environmental Claim that, in the judgment of the Required
Lenders, is reasonably likely to be determined adversely to the affected
Obligor or Unrestricted Subsidiary, and the amount thereof is, singly or in
the aggregate, reasonably likely to have a Material Adverse Effect (insofar
as such amount is payable by any of the Obligors or Unrestricted
Subsidiaries after deducting any portion thereof that is reasonably
expected to be paid by other creditworthy Persons jointly and severally
liable thereof); or
(v) the preferred equity ownership interests in Xxxxxxxx Capital shall
not be redeemed by Xxxxxxxx Capital on or prior to the stated maturity date
thereof or the preferred equity ownership interests in the New HYTOPs Trust
shall not be redeemed by the New HYTOPs Trust on or prior to the stated
maturity date thereof; or
(w) any party to a Consent and Agreement shall default in the
performance of any of its obligations thereunder;
then, and in every such event (other than an event with respect to any Obligor
described in clause (g) or (h) of this Article), and at any time thereafter
during the continuance of such event, the Administrative Agent may, and at the
request of the Required Lenders shall, by notice to the Borrower, take either or
both of the following actions, at the same or different times: (i) terminate the
Commitments, and thereupon the Commitments shall terminate immediately, and (ii)
declare the Loans then outstanding to be due and payable in whole (or in part,
in which case any principal not so declared to be due and payable may thereafter
be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all
fees and other obligations of the Obligors accrued hereunder, shall become due
and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by each Obligor; and in case of any
event with respect to any Obligor described in clause (g) or (h) of this
Article, the Commitments shall automatically terminate and the principal of the
Loans then outstanding, together with accrued interest thereon and all fees and
other obligations of the Obligors accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any
kind, all of which are hereby waived by each Obligor.
ARTICLE IX
THE ADMINISTRATIVE AGENT
Each of the Lenders and the Issuing Lender hereby irrevocably appoints the
Administrative Agent as its agent hereunder and under the other Loan Documents
and authorizes the Administrative Agent to take such actions on its behalf and
to exercise such powers as are delegated to the Administrative Agent by the
terms hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.
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The Person serving as the Administrative Agent hereunder shall have the
same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent, and such
Person and its Affiliates may accept deposits from, lend money to and generally
engage in any kind of business with the Borrower or any Subsidiary or other
Affiliate thereof as if it were not the Administrative Agent hereunder.
The Administrative Agent shall not have any duties or obligations except
those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby or
by the other Loan Documents that the Administrative Agent is required to
exercise in writing by the Required Lenders, and (c) except as expressly set
forth herein and in the other Loan Documents, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose,
any information relating to the Borrower or any of its Subsidiaries that is
communicated to or obtained by the bank serving as Administrative Agent or any
of its Affiliates in any capacity. The Administrative Agent shall not be liable
for any action taken or not taken by it with the consent or at the request of
the Required Lenders or in the absence of its own gross negligence or willful
misconduct. The Administrative Agent shall be deemed not to have knowledge of
any Default unless and until written notice thereof is given to the
Administrative Agent by the Borrower or a Lender, and the Administrative Agent
shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein,
(iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or
document, or (v) the satisfaction of any condition set forth in Article V or
elsewhere herein or therein, other than to confirm receipt of items expressly
required to be delivered to the Administrative Agent.
The Administrative Agent shall be entitled to rely upon, and shall not
incur any liability for relying upon, any notice, request, certificate, consent,
statement, instrument, document or other writing believed by it to be genuine
and to have been signed or sent by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to be made by the proper Person, and shall not incur any liability for
relying thereon. The Administrative Agent may consult with legal counsel (who
may be counsel for an Obligor), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.
The Administrative Agent may perform any and all its duties and exercise
its rights and powers by or through any one or more sub-agents appointed by the
Administrative
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Agent. The Administrative Agent and any such sub-agent may perform any and all
its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to
any such sub-agent and to the Related Parties of the Administrative Agent and
any such sub-agent, and shall apply to their respective activities in connection
with the syndication of the credit facilities provided for herein as well as
activities as Administrative Agent.
Subject to the appointment and acceptance of a successor Administrative
Agent as provided in this paragraph, the Administrative Agent may resign at any
time by notifying the Lenders, the Issuing Lender and the Borrower. Upon any
such resignation, the Required Lenders shall have the right, in consultation
with the Borrower so long as no Default shall exist, to appoint a successor from
among the Lenders. If no successor shall have been so appointed by the Required
Lenders and shall have accepted such appointment within 30 days after the
retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may, on behalf of the Lenders and the Issuing Lender,
appoint a successor Administrative Agent which shall be a bank with a minimum
capital and surplus of $500,000,000 and with an office in New York, New York, or
an Affiliate of any such bank. Upon the acceptance of its appointment as
Administrative Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the
retiring Administrative Agent and the retiring Administrative Agent shall be
discharged from its duties and obligations hereunder. The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such
successor. After the Administrative Agent's resignation hereunder, the
provisions of this Article and Section 10.03 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 Administrative Agent.
Each Lender acknowledges that it has, independently and without reliance
upon the Administrative Agent or any other Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Agreement. Each Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender and based on such documents and information as it shall from time
to time deem appropriate, continue to make its own decisions in taking or not
taking action under or based upon this Agreement, any other Loan Document or any
related agreement or any document furnished hereunder or thereunder.
Except as otherwise provided in Section 10.02(b) with respect to this
Agreement, the Administrative Agent may, with the prior consent of the Required
Lenders (but not otherwise), consent to any modification, supplement or waiver
under any of the Loan Documents, provided that, without the prior consent of
each Lender, the Administrative Agent shall not (except as provided herein or in
the Security Agreement) release all or substantially all of the collateral or
terminate any Lien with respect thereto under the Security Agreement or alter
the relative priorities of the obligations entitled to the benefits of the Liens
created under the Security Agreement, except that no such consent shall be
required, and the Administrative Agent is hereby authorized, to release any Lien
covering property that is the subject of either a
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Disposition of property permitted hereunder or a Disposition to which the
Required Lenders have consented.
Notwithstanding anything herein to the contrary, NationsBank of Texas, N.A.
in its capacity as Documentation Agent shall have no duties or responsibilities
hereunder.
ARTICLE X
MISCELLANEOUS
SECTION 10.01. Notices. Except in the case of notices and other
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:
(a) if to the Borrower or any Subsidiary Guarantor, to it at Xxxxxxxx
Broadcast Group, Inc., 0000 Xxxx 00xx Xxxxxx, Xxxxxxxxx, Xxxxxxxx 00000,
Telecopier No.: (000) 000-0000, Telephone No.: (000) 000-0000 Attention:
Xxxxx X. Xxxxx; with a copy to Xxxxxx & Xxxxxxxx, P.A.,100 Xxxxx Xxxxxx,
Xxxxxxxxx, Xxxxxxxx 00000, Telecopier No.: (000) 000-0000, Telephone No.:
(000) 000-0000, Attention: Xxxxxx Xxxxxx;
(b) if to the Administrative Agent, to The Chase Manhattan Bank, 1
Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention Loan
and Agency Services Group (Telecopy No. (000) 000-0000), with a copy to The
Chase Manhattan Bank, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention
of Xxxxxx Xxxxx Xxxxx (Telecopy No. 212-270-4164);
(c) if to the Issuing Lender, to it at The Chase Manhattan Bank, 1
Chase Xxxxxxxxx Xxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention Loan
and Agency Services Group (Telecopy No. (000) 000-0000), with a copy to The
Chase Manhattan Bank, 000 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention
of Xxxxxx Xxxxx Xxxxx (Telecopy No. 212-270-4164); and
(d) if to a Lender, to it at its address (or telecopy number) set
forth in its Administrative Questionnaire.
Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto (or, in the case
of any such change by a Lender, by notice to the Borrower and the Administrative
Agent). All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been
given on the date of receipt.
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SECTION 10.02. Waivers; Amendments.
(a) No Deemed Waivers; Remedies Cumulative. No failure or delay by the
Administrative Agent, the Issuing Lender or any Lender in exercising any right
or power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent, the Issuing Lender and the Lenders
hereunder are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Obligor therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and then such waiver or consent shall be effective only in the specific instance
and for the purpose for which given. Without limiting the generality of the
foregoing, the making of a Loan or issuance of a Letter of Credit shall not be
construed as a waiver of any Default, regardless of whether the Administrative
Agent, any Lender or the Issuing Lender may have had notice or knowledge of such
Default at the time.
(b) Amendments. Neither this Agreement nor any provision hereof may be
waived, amended or modified except pursuant to an agreement or agreements in
writing entered into by the Borrower and the Required Lenders or by the Borrower
and the Administrative Agent with the consent of the Required Lenders; provided
that no such agreement shall (i) increase any Commitment of any Lender, or
extend the date or decrease the amount of any scheduled reduction thereof
pursuant to Section 2.07, without the written consent of such Lender, (ii)
reduce the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce any fees payable hereunder, without the written
consent of each Lender affected thereby, (iii) postpone the scheduled date of
payment of the principal amount of any Loan or LC Disbursement, or any interest
thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse
any such payment, or postpone the scheduled date of expiration of any
Commitment, without the written consent of each Lender affected thereby, (iv)
alter the manner in which payments or prepayments of principal, interest or
other amounts hereunder shall be applied as between the Lenders or Types or
Classes of Loans, without the written consent of each Lender affected thereby,
(v) change any of the provisions of this Section or the definition of the term
"Required Lenders" or any other provision hereof specifying the number or
percentage of Lenders required to waive, amend or modify any rights hereunder or
make any determination or grant any consent or waiver hereunder, without the
written consent of each Lender, or (vi) release all or substantially all of the
Subsidiary Guarantors from any of their guarantee obligations under Article III
without the written consent of each Lender (except that no such consent shall be
required, and the Administrative Agent is hereby authorized, to release any
guarantor from such obligations that is the subject of a Disposition permitted
hereunder or to which the Required Lenders have consented); and provided further
that (x) no such agreement shall amend, modify or otherwise affect the rights or
duties of the Administrative Agent or the Issuing Lender hereunder without the
prior written consent of the Administrative Agent or the Issuing Lender, as the
case may be, and (y) that any modification or supplement of Article III shall
require the consent of each Subsidiary Guarantor.
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Anything in this Agreement to the contrary notwithstanding, no waiver or
modification of any provision of this Agreement that has the effect (either
immediately or at some later time) of enabling the Borrower to satisfy a
condition precedent to the making of a Revolving Loan shall be effective against
the Revolving Lenders for purposes of the Revolving Commitments unless the
Required Revolving Lenders shall have concurred with such waiver or
modification.
SECTION 10.03. Expenses; Indemnity; Damage Waiver.
(a) Costs and Expenses. The Borrower shall pay (i) all reasonable
out-of-pocket expenses incurred by the Administrative Agent and its Affiliates,
including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of this
Agreement and the other Loan Documents or any amendments, modifications or
waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Lender in connection with the
issuance, amendment, renewal or extension of any Letter of Credit or any demand
for payment thereunder, (iii) all reasonable out-of-pocket expenses incurred by
the Administrative Agent, the Issuing Lender or any Lender, including the
reasonable fees, charges and disbursements of any counsel for the Administrative
Agent, the Issuing Lender or any Lender, in connection with the enforcement or
protection of its rights in connection with this Agreement and the other Loan
Documents, including its rights under this Section, or in connection with the
Loans made or Letters of Credit issued hereunder, including in connection with
any workout, restructuring or negotiations in respect thereof and (iv) all
costs, expenses, taxes, assessments and other charges incurred in connection
with any filing, registration, recording or perfection of any security interest
contemplated by the Security Agreement or any other document referred to
therein.
(b) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent, the Issuing Lender and each Lender, and each Related Party
of any of the foregoing Persons (each such Person being called an "Indemnitee")
against, and to hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses, including the fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of this Agreement or any agreement or instrument
contemplated hereby, the performance by the parties hereto of their respective
obligations hereunder or the consummation of the Transactions or any other
transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use
of the proceeds therefrom (including any refusal by the Issuing Lender to honor
a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter
of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by the Borrower or any of
its Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto;
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provided that such indemnity shall not, as to any Indemnitee, be available to
the extent that such losses, claims, damages, liabilities or related expenses
are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee.
(c) Reimbursement by Lenders. To the extent that the Borrower fails to pay
any amount required to be paid by it to the Administrative Agent or the Issuing
Lender under paragraph (a) or (b) of this Section, each Lender severally agrees
to pay to the Administrative Agent or the Issuing Lender, as the case may be,
such Lender's Applicable Percentage (determined as of the time that the
applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or
asserted against the Administrative Agent or the Issuing Lender in its capacity
as such.
(d) Waiver of Consequential Damages, Etc. To the extent permitted by
applicable law, no Obligor shall assert, and each Obligor hereby waives, any
claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement or any
agreement or instrument contemplated hereby, the Transactions, any Loan or
Letter of Credit or the use of the proceeds thereof.
(e) Payments. All amounts due under this Section shall be payable promptly
after written demand therefor.
SECTION 10.04. Successors and Assigns.
(a) Assignments Generally. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that no Obligor may assign or
otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by any
Obligor without such consent shall be null and void). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than
the parties hereto, their respective successors and assigns permitted hereby
and, to the extent expressly contemplated hereby, the Related Parties of each of
the Administrative Agent, the Issuing Lender and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.
(b) Assignments by Lenders. Any Lender may assign to one or more assignees
all or a portion of its rights and obligations under this Agreement (including
all or a portion of its Commitments and the Loans at the time owing to it);
provided that (i) except in the case of an assignment to a Lender or an
Affiliate of a Lender, the assignment of all or a portion of a Revolving
Commitment or any Lender's obligations in respect of its LC Exposure shall
require the prior written consent of the Issuing Lender (which consent shall not
be unreasonably withheld), (ii) except in the case of an assignment to a Lender
or an Affiliate of a Lender or an assignment of the entire remaining amount of
the assigning Lender's Commitment(s) and/or
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Loan(s), the amount of the Commitment(s) and/or Loan(s) of the assigning Lender
subject to each such assignment (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative
Agent) shall not be less than $5,000,000 and, after giving effect to such
assignment, the assigning Lender shall not have Commitment(s) and/or Loan(s)
less than $5,000,000, in each case unless each of the Borrower and the
Administrative Agent otherwise consent, (iii) each partial assignment of any
Class of Commitment or Loans shall be made as an assignment of a proportionate
part of all the assigning Lender's rights and obligations of such Class of
Commitment and Loans under this Agreement, (iv) the parties to each assignment
shall execute and deliver to the Administrative Agent an Assignment and
Acceptance, together with a processing and recordation fee of $3,500, and (v)
the assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire. Upon acceptance and recording pursuant to
paragraph (d) of this Section, from and after the effective date specified in
each Assignment and Acceptance, the assignee thereunder shall be a party hereto
and, to the extent of the interest assigned by such Assignment and Acceptance,
have the rights and obligations of a Lender under this Agreement, and the
assigning Lender thereunder shall, to the extent of the interest assigned by
such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all of the
assigning Lender's rights and obligations under this Agreement, such Lender
shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.13, 2.14, 2.15 and 10.03). Any assignment or transfer by
a Lender of rights or obligations under this Agreement that does not comply with
this paragraph shall be treated for purposes of this Agreement as a sale by such
Lender of a participation in such rights and obligations in accordance with
paragraph (e) of this Section.
(c) Maintenance of Register by the Administrative Agent. The Administrative
Agent, acting for this purpose as an agent of the Borrower, shall maintain at
one of its offices in The City of New York a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitments of, and principal amount of the
Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof
from time to time (the "Register"). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent, the Issuing Lender and
the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrower, the Issuing Lender and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.
(d) Effectiveness of Assignments. Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Lender and an assignee, the
assignee's completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall accept
such Assignment and Acceptance and record the information contained therein in
the Register. No assignment shall be effective for purposes of this Agreement
unless it has been recorded in the Register as provided in this paragraph.
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(e) Participations. Any Lender may, without the consent of the Borrower,
the Administrative Agent or the Issuing Lender, sell participations to one or
more banks or other entities (a "Participant") in all or a portion of such
Lender's rights and obligations under this Agreement and the other Loan
Documents (including all or a portion of its Commitments and the Loans owing to
it); provided that (i) such Lender's obligations under this Agreement and the
other Loan Documents shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such
obligations and (iii) the Borrower, the Administrative Agent, the Issuing Lender
and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement and the other Loan Documents. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and the other Loan Documents and
to approve any amendment, modification or waiver of any provision of this
Agreement or any other Loan Document; provided that such agreement or instrument
may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver described in the first proviso to
Section 10.02(b) that affects such Participant. Subject to paragraph (f) of this
Section, the Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.13, 2.14 and 2.15 to the same extent as if it were a
Lender and had acquired its interest by assignment pursuant to paragraph (b) of
this Section.
(f) Limitations on Rights of Participants. A Participant shall not be
entitled to receive any greater payment under Section 2.13 or 2.15 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower's prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 2.15 unless the Borrower is notified of the
participation sold to such Participant and such Participant agrees, for the
benefit of the Borrower, to comply with Section 2.15(e) as though it were a
Lender.
(g) Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any such pledge or assignment to a Federal
Reserve Bank, and this Section shall not apply to any such pledge or assignment
of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or
substitute any such assignee for such Lender as a party hereto.
(h) No Assignments to the Obligors or Affiliates. Anything in this Section
to the contrary notwithstanding, no Lender may assign or participate any
interest in any Loan or LC Exposure held by it hereunder to the Borrower or any
of its Affiliates or Subsidiaries without the prior consent of each Lender.
SECTION 10.05. Survival. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other
instruments delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other parties hereto and shall
survive the execution and delivery of this Agreement and the
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making of any Loans and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, the Issuing Lender or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under this Agreement is outstanding and unpaid
or any Letter of Credit is outstanding and so long as the Commitments have not
expired or terminated. The provisions of Sections 2.13, 2.14, 2.15, 3.03 and
10.03 and Article IX shall survive and remain in full force and effect
regardless of the consummation of the transactions contemplated hereby, the
repayment of the Loans, the expiration or termination of the Letters of Credit
and the Commitments or the termination of this Agreement or any provision
hereof.
SECTION 10.06. Counterparts; Integration; Effectiveness. This Agreement may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single contract. This Agreement and any
separate letter agreements with respect to fees payable to the Administrative
Agent constitute the entire contract among the parties relating to the subject
matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in
Section 5.01, this Agreement shall become effective when it shall have been
executed by the Administrative Agent and when the Administrative Agent shall
have received counterparts hereof which, when taken together, bear the
signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page
of this Agreement by telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement.
SECTION 10.07. Severability. Any provision of this Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.
SECTION 10.08. Right of Setoff. If an Event of Default shall have occurred
and be continuing, each Lender is hereby authorized at any time and from time to
time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time
held and other indebtedness at any time owing by such Lender to or for the
credit or the account of any Obligor against any of and all the obligations of
any Obligor now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. The rights of each
Lender under this Section are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.
SECTION 10.09. Governing Law; Jurisdiction; Etc.
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(a) Governing Law. This Agreement shall be construed in accordance with and
governed by the law of the State of New York.
(b) Submission to Jurisdiction. Each Obligor hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement shall affect any right that the
Administrative Agent, the Issuing Lender or any Lender may otherwise have to
bring any action or proceeding relating to this Agreement against any Obligor or
its properties in the courts of any jurisdiction.
(c) Waiver of Venue. Each Obligor hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to this Agreement in any court
referred to in paragraph (b) of this Section. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.
(d) Service of Process. Each party to this Agreement irrevocably consents
to service of process in the manner provided for notices in Section 10.01.
Nothing in this Agreement will affect the right of any party to this Agreement
to serve process in any other manner permitted by law.
SECTION 10.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER
BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
-113-
SECTION 10.11. Headings. Article and Section headings and the Table of
Contents used herein are for convenience of reference only, are not part of this
Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.
SECTION 10.12. Treatment of Certain Information; Confidentiality.
(a) Treatment of Certain Information. The Borrower acknowledges that from
time to time financial advisory, investment banking and other services may be
offered or provided to the Borrower or one or more of its Subsidiaries (in
connection with this Agreement or otherwise) by any Lender or by one or more
subsidiaries or Affiliates of such Lender and the Borrower hereby authorizes
each Lender to share any information delivered to such Lender by the Borrower
and its Subsidiaries pursuant to this Agreement, or in connection with the
decision of such Lender to enter into this Agreement, to any such subsidiary or
Affiliate, it being understood that any such subsidiary or Affiliate receiving
such information shall be bound by the provisions of paragraph (b) of this
Section as if it were a Lender hereunder. Such authorization shall survive the
repayment of the Loans, the expiration or termination of the Letters of Credit
and the Commitments or the termination of this Agreement or any provision
hereof.
(b) Confidentiality. Each of the Administrative Agent, the Issuing Lender
and the Lenders agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (i) to its and its
Affiliates' directors, officers, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential), (ii) to the
extent requested by any regulatory authority, (iii) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process, (iv)
to any other party to this Agreement, (v) in connection with the exercise of any
remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the
enforcement of rights hereunder or thereunder, (vi) subject to an agreement
containing provisions substantially the same as those of this paragraph, to any
assignee of or Participant in, or any prospective assignee of or Participant in,
any of its rights or obligations under this Agreement, (vii) with the consent of
the Borrower or (viii) to the extent such Information (A) becomes publicly
available other than as a result of a breach of this paragraph or (B) becomes
available to the Administrative Agent, the Issuing Lender or any Lender on a
nonconfidential basis from a source other than an Obligor. For the purposes of
this paragraph, "Information" means all information received from any Obligor
relating to any Obligor or its business, other than any such information that is
available to the Administrative Agent, the Issuing Lender or any Lender on a
nonconfidential basis prior to disclosure by an Obligor; provided that, in the
case of information received from an Obligor after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any
Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so
if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own
confidential information.
-114-
SECTION 10.13 Cure of Defaults by Agent or Lenders. Notwithstanding
anything contained herein to the contrary, the Administrative Agent or any
Lender may in its sole discretion, but shall not be obligated to, (a) cure any
monetary default under any Program Services Agreement or (b) cure, by monetary
payment or by performance, any default under any lease or option agreement to
which the Borrower or any Subsidiary is a party. In each case referred to in the
foregoing clauses (a) and (b), the Borrower shall reimburse the Administrative
Agent or such Lender for any such payment, and shall indemnify the
Administrative Agent or such Lender for any and all costs and expenses
(including, without limitation, the fees and expenses of counsel) incurred by
the Administrative Agent or such Lender in connection with any such performance,
in each case with interest, at the Alternate Base Rate plus the Applicable Rate,
payable from the date of such payment or performance by the Administrative Agent
or such Lender to the date of reimbursement by the Borrower. Without limiting
the generality of the foregoing, the Administrative Agent or any Lender may in
its sole discretion, but shall not be obligated to, cure, by monetary payment or
by performance, any default as permitted by any Consent and Agreement and the
Borrower shall reimburse the Administrative Agent or such Lender for any such
payment, and shall indemnify the Administrative Agent or such Lender for any and
all costs and expenses (including, without limitation, the fees and expenses of
counsel) incurred by the Administrative Agent or such Lender in connection with
any such performance, in each case with interest, at the Alternate Base Rate
plus the Applicable Rate, payable from the date of such payment or performance
by the Administrative Agent or such Lender to the date of reimbursement by the
Borrower.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.
XXXXXXXX BROADCAST GROUP, INC.
By
---------------------------
Name: Xxxxx X. Xxx
Title: Chief Financial Officer
SUBSIDIARY GUARANTORS
CHESAPEAKE TELEVISION, INC.
KSMO, INC.
KUPN LICENSEE, INC.
XXXXXXXX RADIO OF ALBUQUERQUE, INC.
XXXXXXXX RADIO OF BUFFALO, INC.
XXXXXXXX RADIO OF GREENVILLE, INC.
XXXXXXXX RADIO OF LOS ANGELES, INC.
XXXXXXXX RADIO OF MEMPHIS, INC.
XXXXXXXX RADIO OF NASHVILLE, INC.
XXXXXXXX RADIO OF NEW ORLEANS, INC.
XXXXXXXX RADIO OF ST. LOUIS, INC.
XXXXXXXX RADIO OF XXXXXX-XXXXX,
INC.
TUSCALOOSA BROADCASTING, INC.
WCGV, INC.
WDBB, INC.
WLFL, INC.
XXXXXXXX MEDIA I, INC.
WPGH LICENSEE, INC.
WSMH, INC.
XXXXXXXX MEDIA II, INC.
WSTR LICENSEE, INC.
WSYX, INC.
XXXXXXXX MEDIA III, INC.
WTTE, CHANNEL 28 LICENSEE, INC.
WTTO, INC.
WTVZ, INC.
WTVZ LICENSEE, INC.
WYZZ, INC.
KOCB, INC.
-116-
CHESAPEAKE TELEVISION LICENSEE, INC.
FSF TV, INC.
KABB LICENSEE, INC.
KDNL LICENSEE, INC.
KSMO LICENSEE, INC.
SCI - INDIANA LICENSEE, INC.
SCI - SACRAMENTO LICENSEE, INC.
XXXXXXXX RADIO OF ALBUQUERQUE LICENSEE, INC.
XXXXXXXX RADIO OF BUFFALO LICENSEE, INC.
XXXXXXXX RADIO OF GREENVILLE LICENSEE, INC.
XXXXXXXX RADIO OF LOS ANGELES LICENSEE, INC.
XXXXXXXX RADIO OF MEMPHIS LICENSEE, INC.
XXXXXXXX RADIO OF NASHVILLE LICENSEE, INC.
XXXXXXXX RADIO OF NEW ORLEANS LICENSEE, INC.
XXXXXXXX RADIO OF ST. LOUIS LICENSEE, INC.
XXXXXXXX RADIO OF XXXXXX-XXXXX LICENSEE, INC.
WDKY, INC.
WDKY LICENSEE, INC.
KOCB LICENSEE, INC.
WCGV LICENSEE, INC.
WLFL LICENSEE, INC.
WLOS LICENSEE, INC.
WSMH LICENSEE, INC.
WTTO LICENSEE, INC.
WYZZ LICENSEE, INC.
KLGT, INC.
KLGT LICENSEE, INC.
XXXXXXXX ACQUISITION I, INC.
XXXXXXXX ACQUISITION II, INC.
XXXXXXXX COMMUNICATIONS, INC.
XXXXXXXX RADIO OF KANSAS CITY LICENSEE, INC.
XXXXXXXX RADIO OF MILWAUKEE LICENSEE, INC.
XXXXXXXX RADIO OF NORFOLK LICENSEE, INC.
XXXXXXXX RADIO OF PORTLAND LICENSEE, INC.
XXXXXXXX RADIO OF ROCHESTER LICENSEE, INC.
TUSCALOOSA BROADCASTING LICENSEE, INC.
WCHS LICENSEE, INC.
WEAR LICENSEE, INC.
WNNE LICENSEE, INC.
WPTZ LICENSEE, INC.
WSYX LICENSEE, INC.
By
-------------------------------------------
Name: Xxxxx X. Xxx
Title: Secretary
-117-
LENDERS
THE CHASE MANHATTAN BANK,
individually and as Administrative Agent
By
----------------------------------------
Name:
Title:
XXX XXXXXX AMERICAN CAPITAL PRIME
RATE INCOME TRUST
By
----------------------------------------
Name:
Title:
BANKERS TRUST COMPANY
By
----------------------------------------
Name:
Title:
FIRST UNION NATIONAL BANK
By
----------------------------------------
Name:
Title:
-118-
NATIONSBANK, N.A.
By
----------------------------------------
Name:
Title:
UNION BANK OF CALIFORNIA, N.A.
By
----------------------------------------
Name:
Title:
BANKBOSTON, N.A.
By
----------------------------------------
Name:
Title:
ABN AMRO BANK. N.V.
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
-119-
BANK OF AMERICA NT&SA
By
----------------------------------------
Name:
Title:
THE BANK OF NOVA SCOTIA
By
----------------------------------------
Name:
Title:
BANQUE NATIONALE DE PARIS
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
PARIBAS
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
-120-
BARCLAYS BANK PLC
By
----------------------------------------
Name:
Title:
COMPAGNIE FINANCIERE DE CIC ET DE
L'UNION EUROPEENNE
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "RABOBANK
NEDERLAND", NEW YORK BRANCH
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
-121-
CREDIT SUISSE FIRST BOSTON
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
DRESDNER BANK AG NEW YORK & GRAND
CAYMAN BRANCHES
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
FLEET NATIONAL BANK
By
----------------------------------------
Name:
Title:
THE FUJI BANK, LIMITED, NEW YORK
BRANCH
By
----------------------------------------
Name:
Title:
-122-
XXXXXXX SACHS CREDIT PARTNERS L.P.
By
----------------------------------------
Name:
Title:
ING (U.S.) CAPITAL CORPORATION
By
----------------------------------------
Name:
Title:
KEY CORPORATE CAPITAL INC.
By
----------------------------------------
Name:
Title:
THE MITSUBISHI TRUST AND BANKING
CORPORATION
By
----------------------------------------
Name:
Title:
PNC BANK, NATIONAL ASSOCIATION
By
----------------------------------------
Name:
Title:
-123-
SOCIETE GENERALE, NEW YORK BRANCH
By
----------------------------------------
Name:
Title:
SUNTRUST BANK, CENTRAL FLORIDA, N.A.
By
----------------------------------------
Name:
Title:
THE LONG-TERM CREDIT BANK OF JAPAN,
LIMITED
By
----------------------------------------
Name:
Title:
BANK OF SCOTLAND
By
----------------------------------------
Name:
Title:
TRANSAMERICA LIFE INSURANCE AND
ANNUITY COMPANY
By
----------------------------------------
Name:
Title:
-124-
BAYERISCHE VEREINSBANK AG NEW YORK
BRANCH
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
BHF-BANK AKTIENGESELLSCHAFT
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
THE FIRST NATIONAL BANK OF MARYLAND
By
----------------------------------------
Name:
Title:
GENERAL ELECTRIC CAPITAL
CORPORATION
By
----------------------------------------
Name:
Title:
-125-
THE INDUSTRIAL BANK OF JAPAN, LIMITED
By
----------------------------------------
Name:
Title:
MELLON BANK, N.A.
By
----------------------------------------
Name:
Title:
MERCANTILE BANK NATIONAL
ASSOCIATION
By
----------------------------------------
Name:
Title:
XXXXXX BANK LTD
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
-126-
NATEXIS BANQUE BFCE
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
THE SANWA BANK, LIMITED, NEW YORK
BRANCH
By
----------------------------------------
Name:
Title:
SOUTHERN PACIFIC BANK
By
----------------------------------------
Name:
Title:
THE SUMITOMO BANK, LIMITED, NEW
YORK BRANCH
By
----------------------------------------
Name:
Title:
-127-
METROPOLITAN LIFE INSURANCE COMPANY
By
----------------------------------------
Name:
Title:
PRIME INCOME TRUST
By
----------------------------------------
Name:
Title:
BANK OF HAWAII
By
----------------------------------------
Name:
Title:
CRESTAR BANK
By
----------------------------------------
Name:
Title:
THE DAI-ICHI KANGYO BANK, LTD.
By
----------------------------------------
Name:
Title:
-128-
FIRST HAWAIIAN BANK
By
----------------------------------------
Name:
Title:
MICHIGAN NATIONAL BANK
By
----------------------------------------
Name:
Title:
NATIONAL CITY BANK
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
PROVIDENT BANK OF MARYLAND
By
----------------------------------------
Name:
Title:
-129-
THE SAKURA BANK, LIMITED
By
----------------------------------------
Name:
Title:
THE TOYO TRUST & BANKING COMPANY,
LTD., NEW YORK BRANCH
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
ERSTE BANK DER OESTERREICHISCHEN
SPARKASSEN AG
By
----------------------------------------
Name:
Title:
By
----------------------------------------
Name:
Title:
-130-
XXX XXXXXX AMERICAN CAPITAL SENIOR
FLOATING RATE FUND
By
----------------------------------------
Name:
Title:
SCHEDULE 1.01
Commitments
SCHEDULE 1.03
Contract And Owned Stations
I. TELEVISION STATIONS
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
NAME OF
LICENSEE
MARKET STATIONS STATUS CHANNEL AFFILIATION SUBSIDIARY
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Minneapolis/St. Xxxx, KLGT Pending 23 WB
Minnesota
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Pittsburgh, Pennsylvania WPGH Owned 53 FOX
WCWB(u) Contract 22 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Sacramento, California KOVR Owned 13 CBS
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
St. Louis, Missouri KDNL Owned 30 ABC
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Baltimore, Maryland WBFF Owned 45 FOX
WNUV Contract 54 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Indianapolis, Indiana WTTV Contract(e) 4 WB
WTTK Contract(e)(g) 29 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Raleigh/Durham, North WLFL Owned 22 FOX
Carolina WRDC Contract 28 UPN
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Cincinnati, Ohio WSTR Owned 64 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Milwaukee, Wisconsin WCGV Owned 24 IND
WVTV Contract 18 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Kansas City, Missouri KSMO Owned 62 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Nashville, Tennessee WZTV Pending(q) 17 FOX
Pending(r) 30 UPN
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Columbus, Ohio WTTE Owned 28 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Asheville, North Carolina and WFBC Contract 40 IND(h)
Greenville/ WLOS Owned 13 ABC
Spartanburg/Anderson,
South Carolina
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
San Antonio, Texas KABB Owned 29 FOX
KRRT Contract 35 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Norfolk, Virginia WTVZ Owned 33 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Buffalo, New York WUTV Pending(q) 29 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Oklahoma City, Oklahoma KOCB Owned 34 XX
XXXX Pending(r) 25 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Greensboro/Winston- WXLV Pending(q) 45 ABC
Salem/High Point, WUPN Pending(r) 48 UPN
North Carolina
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Birmingham, Alabama WTTO Owned(m) 21 WB
WABM Contract 68 IND(h)
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Dayton, Ohio WKEF Pending(n) 22 NBC
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
2
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
NAME OF
LICENSEE
MARKET STATIONS STATUS CHANNEL AFFILIATION SUBSIDIARY
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
WRGT Pending(r) 45 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Charleston/Huntington, WCHS Owned 8 ABC
West Virginia WVAH Pending(r) 11 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Richmond, Virginia WRLH Pending(q) 35 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Las Vegas, Nevada KUPN Owned 21 WB
KFBT Pending(s) 33 IND(h)
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Mobile, Alabama and WEAR Owned 3 ABC
Pensacola, Florida WFGX Contract 35 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Flint/Saginaw/Bay City, WSMH Owned 66 FOX
Michigan
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Lexington, Kentucky WDKY Owned 56 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Des Moines, Iowa KDSM Owned 17 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Syracuse, New York WSYT Pending(n) 68 FOX
WNYS Pending(o) 43 UPN
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Rochester, New York WUHF Pending(q) 31 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Paducah, Kentucky and KBSI Pending(n) 23 FOX
Cape Girardeau, Missouri WDKA Pending(o) 49 UPN
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Madison, Wisconsin WMSN Pending(q) 47 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Burlington, Vermont and WPTZ Owned(i) 5 NBC
Plattsburgh, New York WNNE Owned(i)(k) 31 NBC
WFFF Contract(j) 44 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Tri-Cities, Tennessee/ WEMT Pending (n) 39 FOX
Virginia
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Tyler/Longview, Texas KETK Pending(n) 56 NBC
KLSB Pending(o) 19 NBC
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Peoria/Bloomington, WYZZ Owned 43 FOX
Illinois
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Charleston, South Carolina WMMP Pending (n) 36 UPN
WTAT Pending (r) 24 FOX
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Utica, New York WFXV Pending (q) 33 FOX
WPNY Pending (q) 11 UPN
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
Tuscaloosa, Alabama WDBB Contract (m) 17 WB
-------------------------------- ---------------- ------------------ -------------- --------------- -----------------
NOTES
(e) Non-License Assets acquired from River City Broadcasting, L.P. ("River
City") and option exercised to acquire License Assets. Will become a
Contract Station upon FCC approval of transfer of License Assets and
closing of acquisition of License Assets.
(g) WTTK currently simulcasts all of the programming aired on WTTV and the
station rank applies to the combined viewership of these stations.
(h) "IND" or "Independent" refers to a station that is not affiliated with any
of ABC, CBS, NBC, Xxx, XX or UPN.
3
(i) The Borrower has agreed to sell this station to a third party.
(j) The Borrower has agreed to assign its right to program this station to the
third party to whom the Company has agreed to sell WPTZ and WNNE.
(k) WNNE currently simulcasts the programming broadcast on WPTZ.
(l) This station began broadcast operations in August 1997 pursuant to program
test authority and does not yet have a license. This station has not yet
established a rank.
(m) WDBB simulcasts the programming broadcast on WTTO.
(n) This station will be owned upon the completion of the Max Media
Acquisition.
(o) The Borrower will provide programming services to this station upon the
completion of the Max Media Acquisition.
(p) KLSB simulcasts the programming broadcast of KETK.
(q) This station will be owned upon the completion of the Xxxxxxxx Acquisition.
4
II. RADIO STATIONS
--------------------------------- ---------------------- --------------- -----------------
NAME OF LICENSEE
MARKET STATIONS STATUS SUBSIDIARY
--------------------------------- ---------------------- --------------- -----------------
Los Angeles, California KBLA-AM(e)
--------------------------------- ---------------------- --------------- -----------------
St. Louis, Missouri KPNT-FM
WVRV-FM
WRTH-AM
WIL-FM
KIHT-FM
--------------------------------- ---------------------- --------------- -----------------
Portland, Oregon KFXX-AM(h)
KKSN-FM(h)(t)
KKRH-FM(h)(t)
--------------------------------- ---------------------- --------------- -----------------
Kansas City, Missouri KCAZ-AM(e)(s)
KCFX-FM
KQRC-FM
KCIY-FM
KXTR-FM
--------------------------------- ---------------------- --------------- -----------------
Milwaukee, Wisconsin WEMP-AM
WMYX-FM
WAMG-FM
--------------------------------- ---------------------- --------------- -----------------
Nashville, Tennessee WLAC-FM(h)
WJCZ-FM(h)
WLAC-AM(h)
--------------------------------- ---------------------- --------------- -----------------
New Orleans, Louisiana(a) WLMG-FM
KMEZ-FM(u)
WWL-AM
WSMB-AM
WBYU-AM(g)(u)
WEZB-FM(g)
WRNO-FM(g)(u)
WLTS-FM(p)
WTKL-FM(p)
--------------------------------- ---------------------- --------------- -----------------
Memphis, Tennessee WRVR-FM
WJCE-AM
WOGY-FM
--------------------------------- ---------------------- --------------- -----------------
5
--------------------------------- ---------------------- --------------- -----------------
NAME OF LICENSEE
MARKET STATIONS STATUS SUBSIDIARY
--------------------------------- ---------------------- --------------- -----------------
Norfolk, Virginia(q) WGH-AM
WGH-FM
WVCL-FM(j)
WFOG-FM(o)
WPTE-FM(o)
WWDE-FM(o)
WNVZ-FM(o)
--------------------------------- ---------------------- --------------- -----------------
Buffalo, New York WMJQ-FM
WKSE-FM
WBEN-AM
WWKB-AM
WGR-AM
WWWS-AM
--------------------------------- ---------------------- --------------- -----------------
Greensboro/Winston Salem/High WMQX-FM(o)
Point, WQMG-FM(o)
North Carolina WJMH-FM(o)
WQMG-AM(o)
--------------------------------- ---------------------- --------------- -----------------
Rochester, New York WBBF-AM(h)
WBEE-FM(h)
WKLX-FM(h)
WQRV-FM(h)
--------------------------------- ---------------------- --------------- -----------------
Asheville, North Carolina WFBC-FM(k)
Greenville/Spartanburg, South WORD-AM(k)
Carolina WYRD-AM(k)
WSPA-AM(k)
WSPA-FM(k)
WOLI-FM(k)
WOLT-FM(k)
--------------------------------- ---------------------- --------------- -----------------
Xxxxxx-Xxxxx/Scranton, WKRZ-FM(l)
Pennsylvania WGGY-FM
WGGI-AM
XXXX-AM(m)
WGBI-AM(m)
WWSH-FM(n)
WILP-AM(m)
WWFH-FM(n)
WKRF-FM(l)
XXXX-AM(m)(r)
--------------------------------- ---------------------- --------------- -----------------
NOTES
6
(e) Programming is provided to this station by a third party pursuant to an
LMA.
(g) The Borrower has the right to acquire the assets of the station in the
Heritage Acquisition, subject to FCC approval.
(h) The Borrower has agreed to sell the station to a third party, which
currently programs the station pursuant to an LMA..
(k) The Borrower has exercised its option to acquire Keymarket of South
Carolina, Inc. ("Keymarket" or "KSC"), which owns and operates WYRD-AM,
WORD-AM and WFBC-FM, and provides sales services pursuant to a JSA or Lma
and has an option to acquire WOLI-FM and WOLT-FM. The Company has also
agreed to acquire WSPA-AM and WSPA-FM, which KSC programs pursuant to an
Lma. FCC approval of the Company's acquisition of WYRD-AM, WORD-AM,
WFBC-FM, WSPA-AM, and WSPA-FM is pending.
(l) WKRZ-FM and WKRF-FM simulcast their programming
(m) XXXX-AM, WGBI-AM, WILP-AM and XXXX-AM simulcast their programming.
(n) WWSH-FM and WWFH-FM simulcast their programming.
(o) The Borrower has the right to acquire this radio station in conjunction
with the Max Media Acquisition.
(p) The Borrower provides sales and programming services to this station
pursuant to an LMA and has an option to acquire substantially all the
assets of this station.
(q) The Borrower intends to sell two FM stations and one AM station in the New
Orleans market and two FM station in the Norfolk market in order to comply
with current FCC or DOJ guidelines.
(r) The Borrower provides sales and programming services to the station
pursuant to an LMA.
(s) A third party has exercised their option to purchase this station, the
closing of which is subject to FCC approval.
(t) A petition to xxx the transfer of the licenses of these stations was filed
with the FCC objecting to the acquisition of such licenses by the proposed
assignee.
(u) The Borrower has entered into an agreement to sell these radio stations to
a third party, the closing of which is subject to FCC approval.
SCHEDULE 4.06(a)
Litigation
SCHEDULE 4.06(b)
Environmental Matters
SCHEDULE 4.13(a)
Material Agreements
SCHEDULE 4.13(b)
Liens
SCHEDULE 4.13(c)
Film Cash Payments
SCHEDULE 4.13(d)
Interest Rate Protection Agreements
SCHEDULE 4.14
Capitalization
I. Common Stock
The authorized common stock of the Borrower consists, on the date hereof, of:
1. 100,000,000 shares of Class A Common Stock, par value $.01 per share, of
which [13,733,430] shares are duly and validly issued and outstanding.
2. 35,000,000 shares of Class B Common Stock, par value $.01 per share, of
which [25,436,432] shares are duly and validly issued and outstanding.
As of the date hereof, [.0000209625]% of such issued and outstanding shares of
Class A Common Stock are owned beneficially and of record by the Xxxxx Brothers,
and 100% of such issued and outstanding shares of Class B Common Stock are
beneficially owned of record, directly or indirectly, by the Xxxxx Brothers.
II. Preferred Stock
The authorized preferred stock of the Borrower consists, on the date hereof, of:
1. 10,000,000 shares of Series B Preferred Stock, par value $.01 per share,
which is divided and designated as follows: [1,071,381] shares of Series B
Convertible Preferred Stock, par value $.01 per share of which 1,115,370
shares are duly and validly issued and outstanding, and __________.
2. 3,450,000 shares of Series D Convertible Exchangeable Preferred Stock,
par value $.01 per share, of which 3,450,000 shares are duly and validly
issued and outstanding.
III. Other Equity Rights
1. 1996 Long-Term Incentive Plan
2. Incentive Stock Option Plan
3. Incentive Stock Option Plan for Designated Participants providing for
the right of certain employees of the Borrower and its Subsidiaries to acquire,
in the aggregate, not more than [68,000] shares of the Borrower's Class A Common
Stock (the "Designated Employees Stock Option Plan").
2
4. Stock Option Agreement dated as of April 10, 1996 between Xxxxx Xxxxx
and the Borrower, providing, among other things, for the right of Xxxxx Xxxxx to
acquire 1,382,435 shares of the Borrower's Class A Common Stock on the terms and
conditions set forth therein (the "Xxxxx Stock Option Agreement").
5. The respective Stock Option Agreements dated as of April 10, 1996
between the Borrower and the respective River City Corporate Employees,
providing, among other things, for the right of the River City Corporate
Employees (as defined therein) to acquire, in the aggregate, not more than
691,218 shares of the Borrower's Class A Common Stock on the terms and
conditions set forth therein (the "Corporate Employee Stock Option Agreements").
6. The Incentive Stock Option Plan for Designated Participants providing
for the right of certain employees of the Borrower and its Subsidiaries to
acquire, in the aggregate, not more than 68,000 shares of the Borrower's Class A
Common Stock (the "Designated Employees Stock Option Plan".
7. The respective Stock Option Agreements dated as of April 10, 1996
between the Borrower and certain employees of the Borrower and its Subsidiaries,
providing, among other things, for the right of such employees to acquire, in
the aggregate, not more than 400,000 shares of the Borrower's Class A Common
Stock on the terms and conditions set forth therein (the "Station Employee Stock
Option Agreements").
8. [Equity Rights created pursuant to the River City Asset Purchase
Agreement and the River City Option Agreements and all other agreements and
instruments (together with any and all exhibits, annexes and schedules thereto)
executed and delivered in connection with the River City Non-License
Acquisition.]
9. [others to be inserted, as appropriate]
SCHEDULE 4.15(a)
Subsidiaries
SCHEDULE 4.15(b)
Investments
SCHEDULE 4.16
Broadcast Licenses
SCHEDULE 7.04
Approved Acquisitions
I. Glencairn Acquisition
The exercise of the options for the purchase of all of the issued and
outstanding non-voting stock of Glencairn, and relating to the following
Stations:
WNUV-TV
WRDC-TV
WABM-TV
KRRT-TV
WFBC-TV
WVTV-TV
II. Heritage Acquisition
To the extent not consummated prior to the date hereof, the acquisition of
certain television and radio assets pursuant to agreements each dated July
16, 1997 with The News Corporation, Limited, Heritage Media Group, Inc. and
certain subsidiaries of Heritage Media Corporation, and relating to the
following Stations:
WBYU-AM
WEZB-FM
WRNO-FM
III. Max Media Acquisition
The acquisition, directly or indirectly, of all of the equity interests of
Max Media Properties, L.L.C. pursuant to the Asset Purchase Agreements and
the Stock Purchase Agreements dated December 2, 1997, and relating to the
following Stations:
WFOG-FM
WPTE-FM
WWDE-FM
WNVZ-FM
WMQX-FM
WQMG-FM
WQMG-AM
2
IV. Montecito Acquisition
The acquisition of all of the capital stock of Montecito Broadcasting Inc.
pursuant to the Stock Purchase Agreement dated February 3, 1998, and
relating to the following Station:
KFBT-TV
V. River City Acquisition
To the extent not consummated prior to the date hereof, the acquisition of
stock or assets and assumption of liabilities under the Amended and
Restated Asset Purchase Agreement dated as of April 10, 1996, as amended
and restated as of a date prior to the date hereof, by and between River
City, as Seller, and the Borrower, as Buyer (and related option and other
agreements), and relating to the following Stations:
WSYX-TV
WTTV-TV
WTTK-TV
VI. Xxxxxxxx Acquisition
The acquisition of all of the capital stock of Xxxxxxxx Broadcast Holdings,
Inc. and Xxxxxxxx Broadcasting Company II, Inc. pursuant to the merger
agreements dated February 23, 1998, and relating to the following Stations:
WZTV-TV
WVTV-TV
WXLV-TV
WRLH-TV
WUHF-TV
WMSN-TV
VII. Others
1. The consummation of the acquisition of assets by the Borrower or any of
its Subsidiaries pursuant to the exercise of any or all of the WPTT
Conversion Option, the Glencairn Options and the WDBB Options.
2. The acquisition of stock or assets and assumption of liabilities
relating to WFBC-AM and WFBC-FM, Greenville, South Carolina and WORD-AM,
Spartanburg, South Carolina in accordance with the terms hereof by the
Borrower or any of its Subsidiaries pursuant to the exercise of either
option granted to the Borrower or such Subsidiary under
3
the Option Agreement dated as of July 7, 1995, as amended, by and among
Keymarket of South Carolina, Inc. ("Keymarket S.C.") and the Borrower (as
assignee of River City).
3. The acquisition of assets and assumption of liabilities relating to
WSPA-AM and WSPA-FM, Spartanburg, South Carolina in accordance with the
terms hereof by the Borrower or any of its Subsidiaries pursuant to the
exercise of the option granted to the Borrower or such Subsidiary under the
Option Agreement dated as of August 30, 1994, as amended, by and among The
Spartan Radiocasting Company, Inc. and the Borrower (as assignee of River
City, which, in turn, is assignee of Keymarket S.C.).
4. The acquisition of assets (or of the capital stock (or other equity
ownership interest) of the Person that owns such assets) and assumption of
liabilities relating to XXXX-AM in accordance with the terms hereof.
5. The acquisition of assets (or of the capital stock (or other equity
ownership interest) of the Person that owns such assets) and assumption of
liabilities relating to WXWX-FM, Easley, South Carolina, and WXWZ-FM,
Greer, South Carolina.
6. The acquisition of assets (or of the capital stock (or other equity
ownership interest ) of the Person that owns such assets) and assumption of
liabilities relating to WLTS-FM, Slidell, Louisiana and WTKL-FM, New
Orleans, Louisiana.
SCHEDULE 7.10
Restrictive Agreements
