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Exhibit 10.1
TERMINATION AGREEMENT
THIS TERMINATION AGREEMENT (this "TERMINATION AGREEMENT"), dated as of
March 14, 2000, is entered into by and among Xxxxxxxx Communications, Inc., a
Maryland corporation ("XXXXXXXX"), Xxxxxxxx Acquisition IV, Inc., a Maryland
corporation ("XXXXXXXX ACQUISITION"), WICS Licensee, LLC., a Maryland limited
liability company ("WICS LICENSEE"), WICD Licensee, LLC., a Maryland limited
liability company ("WICD LICENSEE"), KGAN Licensee, LLC, a Maryland limited
liability company ("KGAN LICENSEE"; and collectively with Xxxxxxxx, Xxxxxxxx
Acquisition, WICS Licensee and WICD Licensee, the "XXXXXXXX PARTIES"), STC
Broadcasting, Inc., a Delaware corporation ("STC") and SDF Television License
Corp., a Delaware corporation ("SDF"; and together with STC, the "STC
PARTIES").
WHEREAS, Xxxxxxxx and Xxx Xxxxxxx Communications entered into that
certain Purchase Agreement dated as of September 4, 1998 (the "GANNETT PURCHASE
AGREEMENT"), pursuant to which Xxxxxxxx agreed to purchase substantially all of
the assets of the Gannett Television Stations (as defined therein), including
television broadcast stations WICS-TV, Channel 20, Springfield, Illinois
("WICS"); WICD-TV, Channel 15, Champaign, Illinois ("WICD"; and together with
WICS, the "ILLINOIS STATIONS"); and KGAN-TV, Channel 2, Cedar Rapids, Iowa
("KGAN", and collectively with the Illinois Stations, the "GANNETT STATIONS");
WHEREAS, STC and Xxxxxxxx are parties to a Purchase Agreement, dated
as of March 3, 1999 (the "PURCHASE AGREEMENT"), pursuant to which Xxxxxxxx has
agreed to sell to STC, and STC has agreed to purchase from Xxxxxxxx,
substantially all of the assets of the Gannett Stations, pursuant to the terms
and conditions set forth in the Purchase Agreement;
WHEREAS, Xxxxxxxx has assigned, transferred and conveyed to Xxxxxxxx
Acquisition, Xxxxxxxx'x right to acquire, among other things, the non-FCC
license assets of the Gannett Stations under the Gannett Purchase Agreement
pursuant to an Assignment and Assumption Agreement, dated as of April 23, 1999,
by and between Xxxxxxxx and Xxxxxxxx Acquisition;
WHEREAS, Xxxxxxxx has assigned, transferred and conveyed to WICS
Licensee, WICD Licensee, LLC and KGAN Licensee Xxxxxxxx'x right to acquire,
among other things, the FCC license assets of the Gannett Stations under the
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Gannett Purchase Agreement pursuant to an Assignment and Assumption Agreement,
dated as of April 23, 1999, by and between Xxxxxxxx and each of WICS Licensee,
WICD Licensee and KGAN Licensee;
WHEREAS, STC has assigned, transferred and conveyed to SDF STC's right
to acquire the FCC license assets of the Gannett Stations under the Purchase
Agreement pursuant to an Assignment and Assumption Agreement, dated as of
September 20, 1999, by and between STC and SDF;
WHEREAS, the parties hereto mutually desire to terminate the Purchase
Agreement on the terms set forth herein; and
WHEREAS, capitalized terms used herein and not otherwise defined
herein shall have the meaning ascribed to such terms in the Purchase Agreement.
NOW, THEREFORE, in consideration of the foregoing and the covenants
and agreements set forth in this Termination Agreement, and intending to be
legally bound hereby, the parties hereto agree as follows:
1. Termination. The Xxxxxxxx Parties and the STC Parties
mutually consent to terminate the Purchase Agreement pursuant to Section
10.1(a)(i) of the Purchase Agreement.
2. Effect of Termination. Notwithstanding anything to the
contrary contained in the Purchase Agreement or otherwise, (a) Purchaser shall
receive the immediate return of the Letter of Credit, and (b) the Xxxxxxxx
Parties and the STC Parties, their respective subsidiaries, officers,
directors, employees, agents and representatives, shall be released and
discharged of all obligations under the Purchase Agreement, except (i) to the
extent of a party's liability for willful material breaches of the Purchase
Agreement prior to the time of this Termination Agreement, and (ii) the
obligations of each party for its own expenses incurred in connection with the
transactions contemplated by the Purchase Agreement as provided therein.
3. Releases. Each of the Xxxxxxxx Parties and STC Parties,
hereby releases and discharges the others (and such other's directors,
officers, representatives, employees, attorneys, advisors, agents, parents,
subsidiaries, affiliated persons and entities, predecessors, successors and
assigns and all persons acting in concert with any such party) (the "RELEASED
PERSONS") from all manner of claims, actions, causes of action or suits, at law
or in equity, known or unknown, which each now has or hereafter can, shall, or
may have by reason of any matter, cause or thing whatsoever relating to or
arising out of the Purchase Agreement,
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excepting only any claim, action, cause of action or suit arising (a) by virtue
of an undertaking or promise contained in this Termination Agreement or (b) by
virtue of transactions or dealings undertaken in the ordinary course of
business and not arising out of, in connection with or in any way related to
the Purchase Agreement. Nothing in this Section 3 shall in any way constitute
an agreement by any party hereto to indemnify any other party hereto against
any third party claim or, except as specifically set forth herein, waive,
release, limit or restrict any claim which any party may have against any
person or entity not a party to this Termination Agreement.
4. Counterparts. This Termination Agreement may be executed in
one or more counterparts, all of which shall be considered one and the same
agreement and shall become effective when one or more counterparts have been
signed by each of the parties and delivered to the other parties.
5. Entire Agreement. This Termination Agreement constitutes the
entire agreement and supersede all prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof.
6. Governing Law. This Termination Agreement shall be governed
and construed in accordance with the laws of the State of New York, without
giving effect to choice of law principles thereof (other than Section 5-1401 of
the New York General Obligations Law).
7. Successors and Assigns. This Termination Agreement shall be
binding upon, inure to the benefit of and be enforceable by the parties and
their respective successors and assigns.
8. Notices. All notices and other communications hereunder shall
be in writing, shall be delivered by hand, telecopy, facsimile or next-day
courier service and shall be deemed given when delivered. All notices hereunder
shall be delivered as set forth below, or pursuant to such other instructions
as may be designated in writing by the party to receive such notice:
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If to STC or SDF:
c/o STC Broadcasting, Inc.
0000 0xx Xxxxxx Xxxxx
Xxxxx 000
Xx. Xxxxxxxxxx, Xxxxxxx 00000
Attn: Xxxxx Xxxx
Fax: (000) 000-0000
with copies to:
Hicks, Muse, Xxxx & Xxxxx Incorporated
000 Xxxxxxxx Xxxxx
Xxxxx 0000
Xxxxxx, Xxxxx 00000
Attn: Xxxxxxxx X. Xxxxxx, Xx., Esq.
Fax: (000) 000-0000
and
Xxxxx & Xxxxxxx L.L.P.
0000 Xxxxxxxxxx Xxxxx
Xxxxx 0000
XxXxxx, Xxxxxxxx 00000
Attn: Xxxxxxx X. Xxxxx, Xx., Esq.
Fax: (000) 000-0000
If to the Xxxxxxxx Parties:
c/x Xxxxxxxx Communications, Inc.
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000-0000
Attn: President
Fax: (000) 000-0000
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with copy to:
c/x Xxxxxxxx Communications, Inc.
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxx, Xxxxxxxx 00000-0000
Attn: General Counsel
Fax: (000) 000-0000
and
Xxxxxx & Xxxxxxxx, P.A.
000 Xxxxx Xxxxxx
Xxxxx 0000
Xxxxxxxxx, Xxxxxxxx 00000-0000
Attn: Xxxxxx X. Xxxxxx, Esq.
Fax: (000) 000-0000
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, the parties have caused this Termination Agreement
to be signed by their respective officers thereunto duly authorized, all as of
the date first written above.
XXXXXXXX COMMUNICATIONS, INC.
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Secretary / Treasurer
XXXXXXXX ACQUISITION IV, INC.
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Secretary / Treasurer
WICS LICENSEE, LLC
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Secretary / Treasurer
WICD LICENSEE, LLC
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Secretary / Treasurer
[SIGNATURES CONTINUE ON FOLLOWING PAGE]
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KGAN LICENSEE, LLC
By: /s/ Xxxxx X. Xxx
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Name: Xxxxx X. Xxx
Title: Secretary / Treasurer
STC BROADCASTING, INC.
By: /s/ Xxxxx X. Xxxx
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Name: Xxxxx X. Xxxx
Title: Chief Financial Officer
SDF TELEVISION LICENSE CORP.
By: /s/ Xxxxx X. Xxxx
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Name: Xxxxx X. Xxxx
Title: Secretary