EXHIBIT 99.6
GUARANTY AGREEMENT
This Guaranty Agreement is made and delivered as of this 2nd day of
January, 2003, by Hispanic Broadcasting Corporation ("Guarantor") in favor of
Big City Radio, Inc. and Big City Radio-CHI, L.L.C. (collectively, "Seller").
WHEREAS, Seller has entered into an Asset Purchase Agreement, dated as of
even date herewith (the "Asset Purchase Agreement"), with HBC Illinois, Inc.
("Purchaser"); and
WHEREAS, Guarantor is the parent corporation of Purchaser and desires
that Seller execute the Asset Purchase Agreement.
NOW, THEREFORE, for value received, Guarantor hereby agrees as follows:
1. Guarantor irrevocably and unconditionally guarantees to Seller the
prompt performance and payment when due of all of Purchaser's obligations under
the Asset Purchase Agreement (the "Obligations"), including but not limited to
the payment of the purchase price thereunder and the remedy of specific
performance set forth therein.
2. The obligations of Guarantor under this Guaranty shall be
absolute, unconditional and irrevocable, and shall remain in full force and
effect until the Obligations shall have been satisfied in full, it being the
express purpose and intent of Guarantor that its obligations hereunder shall not
be discharged except by payment, performance, discharge or other satisfaction in
full of all of Guarantor's obligations hereunder. Such obligations shall not be
in any manner whatsoever affected, modified or impaired by the happening from
time to time of any assignment of Purchaser's obligations to a third party or
any event or action that would, in the absence of this clause, result in the
release or discharge of Guarantor, by operation of law or otherwise, from the
performance of observance of any obligation, covenant or agreement contained in
this Guaranty, or the default or failure of Guarantor to perform fully any
obligations set forth in this Guaranty.
3. Guarantor waives diligence, presentment, protest, notice, demand,
dishonor and notice of dishonor and any other defenses available to it hereunder
as a surety and agrees to be bound to the Obligations as fully as if it were a
co-obligor. The parties to the Asset Purchase Agreement may enter into any
amendment, waiver or modification of the Asset Purchase Agreement, whether or
not such amendment, waiver or modification would in any way increase or decrease
the extent of Guarantor's obligations hereunder, without notice to or consent of
Guarantor and without thereby releasing Guarantor hereunder or incurring any
liability to Guarantor.
4. No failure or delay or lack of demand, notice or diligence in
exercising any right under this Guaranty shall operate as a waiver thereof, nor
shall any single or partial exercise of any such right preclude any other or
further exercise thereof or the exercise of any other right under this Guaranty.
5. This Guaranty is an absolute, unconditional and continuing
guaranty of payment and performance and not of collection. Seller need not
exhaust or pursue any remedy or take any action in respect of the default of any
obligation guaranteed hereby prior to or as a condition to proceeding directly
under this Guaranty against Guarantor.
6. Guarantor represents and warrants to Seller that it has the
corporate power and authority to enter into this Guaranty, that all corporate
and governmental approvals needed by it to enter into and to perform this
Guaranty have been secured or obtained, and that this Guaranty is a legal and
valid obligation binding upon it and is enforceable in accordance with its
terms, and that the execution of this Guaranty does not conflict with any
agreement, undertaking, or instrument to which it is party. The undersigned
represents that he or she is fully authorized to execute and deliver this
Guaranty on behalf of Guarantor.
7. Guarantor agrees that the obligation of Guarantor as a guarantor
shall not be impaired, modified, changed, released, or limited in any manner
whatsoever by any impairment, modification, change, release, or limitation of
the liability of Purchaser or its estate in bankruptcy, resulting from the
operation of any present or future provision of the bankruptcy laws or other
similar statute, or from the decision of any court.
8. Guarantor agrees that its obligations hereunder are irrevocable,
are joint and several, and are independent of the obligations of Purchaser; that
a separate action or actions may be brought and prosecuted against Guarantor
regardless of whether any action is brought against Purchaser or whether
Purchaser is joined in any such action or actions; and that Guarantor waives the
benefit of any statute of limitations affecting its liability hereunder or the
enforcement hereof.
9. Guarantor agrees to pay all costs, expenses and fees which may be
incurred by Seller in enforcing this Guaranty or in protecting the rights of
Seller following any default on the part of Guarantor hereunder, whether the
same shall be enforced by suit or otherwise.
10. This Guaranty is and shall be in every particular available to the
successors and assigns of Seller and is and shall always be fully binding upon
the successors and assigns of Guarantor, provided that Guarantor shall not
assign any of its rights or obligations hereunder without the written consent of
Seller.
11. This Guaranty shall be governed by and construed in accordance
with the laws of the State of New York.
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IN WITNESS WHEREOF, the parties hereto have executed this Guaranty as of
the date first above written.
HISPANIC BROADCASTING
CORPORATION
By: /s/ Xxxxxxx X. Xxxxxx
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Name: Xxxxxxx X. Xxxxxx
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Title: Senior Vice President and
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Chief Financial Officer
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Accepted:
BIG CITY RADIO, INC.
By: /s/ Xxxx X. Xxxxxxx
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Name: Xxxx X. Xxxxxxx
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Title: Vice President and
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Chief Financial Officer
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BIG CITY RADIO-CHI, L.L.C.
By: /s/ Xxxx X. Xxxxxxx
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Name: Xxxx X. Xxxxxxx
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Title: Vice President and
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Chief Financial Officer
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