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EXHIBIT 4(b)
SECOND
AMENDED AND RESTATED
CREDIT AGREEMENT
DATED AS OF December 30, 1998
AMONG
SAGA COMMUNICATIONS, INC.,
CERTAIN OF ITS SUBSIDIARIES,
THE LENDERS PARTY HERETO
AND
BANKBOSTON, N.A., as Agent
FLEET BANK, N.A.,
SUMMIT BANK, and
THE BANK OF NEW YORK, as Co-Agents
AND
BANCBOSTON XXXXXXXXX XXXXXXXX INC., as Arranger
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TABLE OF CONTENTS
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ARTICLE I. Definitions; Designation of Unrestricted Subsidiaries ...... 2
Section 1.1. Definitions ................................................ 2
Section 1.2. General Provisions Pertaining to Definitions ............... 34
Section 1.3. Subsidiaries; Designation of Unrestricted Subsidiaries;
Certain Obligations Respecting Restricted Subsidiaries .... 34
ARTICLE II. Commitments; Loans; Collateral .............................. 36
Section 2.1. Loans ...................................................... 36
Section 2.2. Notices Relating to Loans;
Requests for Eurodollar Loans ............................. 38
Section 2.3. Disbursement of Loan Proceeds .............................. 39
Section 2.4. Notes ...................................................... 39
Section 2.5. Mandatory Principal Payments ............................... 40
Section 2.6. Reduction or Termination of Commitments;
Voluntary Payments ........................................ 45
Section 2.7. Interest ................................................... 45
Section 2.8. Fees ....................................................... 46
Section 2.9. Use of Proceeds of Loans ................................... 47
Section 2.10. Computations ............................................... 48
Section 2.11. Minimum Amounts of Borrowings, Conversions and
Prepayments ............................................... 48
Section 2.12. Time and Method of Payments ................................ 49
Section 2.13. Lending Offices ............................................ 49
Section 2.14. Several Obligations ........................................ 49
Section 2.15. Security ................................................... 49
Section 2.16. Pro Rata Treatment Among Lenders ........................... 50
Section 2.17. Non-Receipt of Funds by Agent .............................. 51
Section 2.18. Sharing of Payments and Set-Off Among Lenders .............. 51
Section 2.19. Conversion of Loans; Continuation of Loans ................. 52
Section 2.20. Additional Costs; Capital Requirements ..................... 52
Section 2.21. Limitation of Types of Loans ............................... 55
Section 2.22. Illegality ................................................. 55
Section 2.23. Certain Conversions Pursuant to
Sections 2.20 and 2.22 .................................... 55
Section 2.24. Indemnification ............................................ 56
Section 2.25. Waiver of Claims ........................................... 57
Section 2.26. Reallocation of Existing Loans ............................. 57
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ARTICLE III. Letters of Credit .......................................... 58
Section 3.1. Letter of Credit Commitment ................................ 58
Section 3.2. Issuance of Letters of Credit .............................. 58
Section 3.3. Participation by Lenders ................................... 59
Section 3.4. Letter of Credit Disbursements.... ......................... 60
Section 3.5. Obligation to Repay Letter of Credit
Disbursements, etc. ....................................... 61
Section 3.6. Letter of Credit Fees ...................................... 62
Section 3.7. Letter of Credit Applications .............................. 62
ARTICLE IV. Representations and Warranties ............................. 62
Section 4.1. Organization, Etc. ......................................... 62
Section 4.2. Power; Authority; Consents; No Conflicts ................... 63
Section 4.3. Due Execution, Validity and Enforceability ................. 64
Section 4.4. Priority of Liens; Condition of Assets. .................... 64
Section 4.5. Judgments, Actions, Proceedings ............................ 65
Section 4.6. No Defaults; Compliance with Laws .......................... 65
Section 4.7. Burdensome Documents ....................................... 65
Section 4.8. Governing Documents. ....................................... 65
Section 4.9. Financial Information ...................................... 65
Section 4.10. No Material Changes ........................................ 66
Section 4.11. Taxes ...................................................... 66
Section 4.12. Intangible Assets .......................................... 66
Section 4.13. Licenses and Approvals ..................................... 66
Section 4.14. Environmental Compliance ................................... 67
Section 4.15. Employee Benefit Plans ..................................... 67
Section 4.16. Labor Disputes; Collective Bargaining Agreements;
Employee Grievances ....................................... 68
Section 4.17. Insurance .................................................. 69
Section 4.18. Absence of Certain Restrictions ............................ 69
Section 4.19. Ancillary Documents ........................................ 69
Section 4.20. Solvency ................................................... 69
Section 4.21. Application of Certain Laws and Regulations ................ 70
Section 4.22. Year 2000 Problem .......................................... 70
Section 4.23. No Material Real Property; No Material Intellectual
Property .................................................. 70
Section 4.24. Full Disclosure ............................................ 70
Section 4.25. Letters of Credit .......................................... 71
ARTICLE V. Conditions to Credit Extensions ............................ 71
Section 5.1. Conditions to Initial Credit Extensions .................... 71
Section 5.2. Conditions Precedent to Each Credit Extension .............. 75
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ARTICLE VI. Guaranty .................................................... 76
Section 6.1. Guaranty of Payment ......................................... 76
Section 6.2. Waivers of Notice, Etc. ..................................... 77
Section 6.3. Election of Remedies ........................................ 78
Section 6.4. Expenses .................................................... 78
Section 6.5. Unenforceability of Obligations ............................. 79
Section 6.6. Subrogation Rights; Subordination
of Subrogation Rights ...................................... 79
Section 6.7. Limitation on Obligations ................................... 80
ARTICLE VII. Delivery of Financial Reports,
Documents and Other Information ............................ 80
Section 7.1. Annual Financial Statements ................................. 80
Section 7.2. Quarterly Financial Statements .............................. 81
Section 7.3. Compliance Information ...................................... 81
Section 7.4. Accountants' Reports ........................................ 81
Section 7.5. Copies of Documents ......................................... 82
Section 7.6. Annual Budget ............................................... 82
Section 7.7. Additional Information ...................................... 82
ARTICLE VIII. Affirmative Covenants ....................................... 83
Section 8.1. Payment and Performance of
Obligations ................................................ 83
Section 8.2. Conduct of Business ......................................... 83
Section 8.3. Books and Records ........................................... 84
Section 8.4. Inspections and Audits ...................................... 84
Section 8.5. Insurance ................................................... 85
Section 8.6. Notice of Defaults, Litigation; Etc. ........................ 86
Section 8.7. ERISA Notices ............................................... 86
Section 8.8. No Termination of Loan
Documents, Etc. ............................................ 86
Section 8.9. Environmental Laws .......................................... 87
Section 8.10. Interest Rate Protection .................................... 87
Section 8.11. Governmental Approvals ...................................... 87
Section 8.12. Collateral for Loans ........................................ 87
Section 8.13. Dividends ................................................... 88
Section 8.14. Appraisals .................................................. 88
Section 8.15. Permitted Acquisitions ...................................... 88
Section 8.16. Further Assurances .......................................... 89
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ARTICLE IX. Negative Covenants .......................................... 89
Section 9.1. Indebtedness ................................................ 90
Section 9.2. Liens ....................................................... 90
Section 9.3. Mergers, Consolidations, Sales of Assets .................... 91
Section 9.4. Investments ................................................. 94
Section 9.5. Restricted Payments ......................................... 96
Section 9.6. Issuance of Capital Stock ................................... 97
Section 9.7. Sale and Leaseback .......................................... 97
Section 9.8. ERISA Compliance ............................................ 97
Section 9.9. Amendment or Termination of Documents ....................... 97
Section 9.10. Restrictive Agreements ...................................... 98
Section 9.11. Transactions with Affiliates ................................ 98
Section 9.12. Limitations on Operation of Saga Real Estate ................ 98
ARTICLE X. Financial Covenants ......................................... 99
Section 10.1. Maximum Total Funded Debt Leverage Ratio .................... 99
Section 10.2. Pro Forma Fixed Charges Coverage Ratio ...................... 99
Section 10.3. Minimum Interest Coverage Ratio ............................. 99
Section 10.4. General Provisions Relating to
Financial Terms and Covenants .............................. 100
ARTICLE XI. Events of Default; Acceleration ............................. 101
Section 11.1. Events of Default ........................................... 101
Section 11.2. Termination of Commitments;
Acceleration of Obligations ................................ 104
Section 11.3. No Implied Waivers; Rights Cumulative ....................... 105
Section 11.4. Letters of Credit ........................................... 105
ARTICLE XII. The Agent ................................................... 106
Section 12.1. Appointment, Powers and Immunities .......................... 106
Section 12.2. Reliance by Agent ........................................... 106
Section 12.3. Events of Default ........................................... 107
Section 12.4. Rights as a Lender .......................................... 107
Section 12.5. Indemnification ............................................. 107
Section 12.6. Non-Reliance on Agent and Other Lenders ..................... 108
Section 12.7. Failure to Act .............................................. 108
Section 12.8. Resignation or Removal of Agent ............................. 108
Section 12.9. Sharing of Collateral and Payments .......................... 109
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ARTICLE XIII. Miscellaneous Provisions ................................... 110
Section 13.1. Fees and Expenses; Indemnity ............................... 110
Section 13.2. Taxes ...................................................... 112
Section 13.3. Survival of Agreements and Representations;
Construction .............................................. 112
Section 13.4. Modifications, Consents and Waivers;
Entire Agreement .......................................... 112
Section 13.5. Remedies Cumulative ........................................ 115
Section 13.6. Further Assurances ......................................... 115
Section 13.7. Notices .................................................... 115
Section 13.8. Counterparts ............................................... 117
Section 13.9. Severability ............................................... 117
Section 13.10. Binding Effect; No Assignment or Delegation
by Borrower ............................................... 117
Section 13.11. Assignments and Participations by
Lenders ................................................... 117
Section 13.12. FCC Approval ............................................... 122
Section 13.13. Usury Provision ............................................ 122
Section 13.14. Certain Lien Releases ...................................... 123
Section 13.15. Confidentiality ............................................ 123
Section 13.16. Governing Law; Consent to Jurisdiction
Waiver of Trial by Jury ................................... 123
Section 13.17. Integration of Schedules and Exhibits ...................... 124
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LIST OF SCHEDULES AND EXHIBITS
SCHEDULES DESCRIPTION
--------- -----------
1 Commitments
4.1 Organization; Capitalization
4.2 Approvals and Consents
4.4(a) Assets Excluded From Grant of Security Interest
4.5 Judgments, Actions, Proceedings
4.7 Burdensome Documents
4.11 Tax Matters
4.12 Intellectual Property
4.13 FCC Licenses
4.14(a) Violation of Environmental Laws
4.14(b) Environmental Violation Notices
4.14(c) Release of Hazardous Substances
4.15 Employee Benefit Plans
4.16 Labor Disputes; Collective Bargaining Agreements
4.17 Insurance
8.2 Location of Principal Place of Business of Each
Principal Company
8.2(a) Local Market Agreements
8.2(b) Time Brokerage Agreements
9.1(i) Existing Indebtedness
9.2 Liens
9.3 Corporate Structure and Organization
9.4 Investments
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EXHIBITS DESCRIPTION
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A-1 Form of Revolving Credit Note
A-2 Form of Term Loan Note
A-3 Form of Acquisition Loan Note
A-4 Form of Incremental Facility Loan Note
B Form of Indemnity, Contribution and Subrogation Agreement
C Form of Effective Date Certificate
D Form of Assignment and Acceptance Agreement
E Form of Amended and Restated Collateral Trust Agreement
F Form of Lender Assignment Agreement
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SECOND
AMENDED AND RESTATED
CREDIT AGREEMENT
THIS SECOND AMENDED AND RESTATED CREDIT AGREEMENT is made as of December
30, 1998, by and among (1) SAGA COMMUNICATIONS, INC., a Delaware corporation
(the "BORROWER"); (2) the Subsidiaries of the Borrower party hereto; (3) the
various financial institutions which are now, or in accordance with SECTION
13.11 hereafter become, parties hereto as Lenders (individually, a "LENDER" and
collectively, the "LENDERS"); (4) BANKBOSTON, N.A., a national banking
association, as agent for the Lenders (the "AGENT"); (5) FLEET BANK, N.A., THE
BANK OF NEW YORK, and SUMMIT BANK, as co-agents for the Lenders (each a
"CO-AGENT" and, collectively, the "CO-AGENTS") and (6) BANCBOSTON XXXXXXXXX
XXXXXXXX INC., a Massachusetts corporation, as syndication agent and arranger
(the "ARRANGER").
W I T N E S S E T H:
WHEREAS, the Borrower, certain Subsidiaries of the Borrower, various
financial institutions (collectively, the "EXISTING LENDERS") and BankBoston,
N.A., as agent for the Existing Lenders, entered into an Amended and Restated
Credit Agreement, dated as of June 17, 1996 (as heretofore amended, restated or
otherwise modified, together with all the Schedules and Exhibits thereto, the
"EXISTING CREDIT AGREEMENT");
WHEREAS, in connection with the transactions contemplated by the Existing
Credit Agreement, the Borrower and certain Subsidiaries of the Borrower, granted
to BankBoston, as Collateral Trustee, a first priority, perfected pledge,
security interest and/or mortgage in the Collateral (as defined in the Existing
Credit Agreement) pursuant to the Security Documents (as defined in the Existing
Credit Agreement), all as more particularly set forth in such Security
Documents;
WHEREAS, the Borrower has requested the Agent, the Co-Agents and the
Lenders to amend and restate the Existing Credit Agreement in its entirety and
to provide the Borrower with senior secured revolving credit, term loan and
acquisition loan facilities (collectively, the "INITIAL FACILITIES") in the
maximum aggregate principal amount of $150,000,000, consisting of a senior
secured term loan facility in the aggregate principal amount of $70,000,000, a
senior secured revolving credit facility in the aggregate principal amount of
$20,000,000, and a senior secured acquisition loan facility in the aggregate
principal amount of $60,000,000;
WHEREAS, the Borrower has further requested the Agent, the Co-Agents and
the Lenders to consider providing the Borrower with an additional
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credit facility (the "INCREMENTAL FACILITY") in the aggregate principal amount
of up to $50,000,000;
WHEREAS, the Agent, the Co-Agents and the Lenders are willing, subject to
the terms and conditions set forth herein, to amend and restate the Existing
Credit Agreement, to provide to the Borrower the Initial Facilities and to
consider providing to the Borrower the Incremental Facility; and
WHEREAS, in order to induce the Agent, the Co-Agents and the Lenders to
amend and restate the Existing Credit Agreement, the Borrower desires, and it is
a condition to the effectiveness hereof, that the Principal Companies under the
Existing Credit Agreement confirm and reaffirm their respective grants to the
Collateral Trustee of the aforementioned first priority, perfected pledges,
security interests and/or mortgages in such Collateral to secure all Obligations
under and in connection with this Agreement and the other Loan Documents, all as
more particularly set forth in the Security Documents, as amended and restated
in connection herewith;
NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto hereby agree that, upon the execution of
this Agreement, the Existing Credit Agreement (including all Schedules and
Exhibits thereto) shall be, and the same hereby is, amended and restated in its
entirety to read as set forth above and as follows (and, in the case of
SCHEDULES and EXHIBITS, in the form attached hereto):
ARTICLE I
DEFINITIONS; DESIGNATION OF
UNRESTRICTED SUBSIDIARIES
Section 1.1. DEFINITIONS. As used in this Agreement, the following terms
shall have the following meanings:
"ACQUISITION" - shall mean any transaction, or any series of related
transactions, consummated on, prior to, or after the date of this Agreement, in
which the Borrower or any Restricted Subsidiary (in one transaction or as the
most recent transaction in a series of transactions) (i) acquires any
Communications System, any business or all or substantially all of the assets of
any Person or any division or business unit thereof, whether through purchase of
assets, merger or otherwise, (ii) directly or indirectly acquires control of at
least a majority (in number of votes) of the securities of a corporation which
have ordinary voting power for the election of directors or (iii) directly or
indirectly acquires control of a majority ownership interest in any partnership
or joint venture.
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"ACQUISITION DOCUMENTS" - all agreements, documents and instruments
executed and/or delivered in connection with any Acquisition, including the
Scheduled Acquisition Documents.
"ACQUISITION LOAN COMMITMENT" - with respect to a Lender, the commitment
of such Lender to make Acquisition Loans to the Borrower in the amount set forth
on SCHEDULE 1 hereto, as the same may be reduced from time to time or terminated
in accordance with the terms hereof.
"ACQUISITION LOAN COMMITMENT FEES" - as defined in SUBSECTION 2.8(b).
"ACQUISITION LOAN COMMITMENT PERIOD" - the period from and including the
Effective Date to the earlier to occur of (i) the day before the Conversion Date
and (ii) the termination of the Acquisition Loan Commitments.
"ACQUISITION LOAN PAYMENT DATE" - as defined in SUBSECTION 2.5(c).
"ACQUISITION LOANS" - as defined in SUBSECTION 2.1(b).
"ACQUISITION LOAN NOTES" - as defined in SUBSECTION 2.4(c).
"AFFECTED LOANS" - as defined in SECTION 2.23.
"AFFECTED TYPE" - as defined in SECTION 2.23.
"AFFILIATE" - any Person that directly or indirectly controls, or is under
common control with, or is controlled by, the Borrower. As used in this
definition, "CONTROL" (including, with its correlative meanings, "CONTROLLED BY"
and "UNDER COMMON CONTROL WITH") shall mean possession, directly or indirectly,
of power to direct or cause the direction of management or policies (whether
through ownership of securities or partnership or other ownership interests, by
contract or otherwise), PROVIDED THAT, in any event, any Person that owns
directly or indirectly securities having 5% or more of the 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 or other Person. Notwithstanding the foregoing, (a) no wholly-owned
Restricted Subsidiary of the Borrower shall be an Affiliate and (b) neither the
Agent, nor any Lender, shall be an Affiliate.
"AGENT" - as defined in the preamble hereof.
"AGENT'S SPECIAL COUNSEL" - Xxxxxxx Xxxx LLP and such other counsel as the
Agent may from time to time retain as special counsel in connection with the
financing arrangements contemplated by or arising under the Loan Documents.
"AGREEMENT" - this Credit Agreement.
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"ANCILLARY DOCUMENTS" - collectively, (i) the Seller Debt Documents and
(ii) the Acquisition Documents.
"APPLICABLE LENDING OFFICE" - with respect to each Lender, with respect to
each type of Loan, the lending office as designated for such type of Loan below
its name on the signature pages hereof or such other office of such Lender or of
an affiliate of such Lender as such Lender may from time to time specify to the
Agent and the Borrower as the office at which its Loans of such type are to be
made and maintained.
"APPLICABLE MARGIN" - for any calendar quarter, the applicable percentage
set forth in the table below opposite the Total Funded Debt Leverage Ratio as of
the end of the Most Recent Reference Period prior to the commencement of such
calendar quarter:
APPLICABLE MARGINS
Total Funded Debt Applicable Margin Applicable Margin
Leverage Ratio for Base Rate Loans for Eurodollar Loans
----------------- ------------------- --------------------
Greater than or equal 0.750% 1.750%
to 5.0:1.0
Less than 5.0:1.0 but 0.500% 1.500%
greater than or equal
to 4.0:1.0
Less than 4.0:1.0 but 0.375% 1.375%
greater than or equal
to 3.5:1.0
Less than 3.5:1.0 but 0.250% 1.250%
greater than or equal
to 3.0 to 1.0
Less than 3.0:1.0 0.000% 1.000%
Notwithstanding the foregoing, in the event that the Lenders shall not have
received the most recent financial statements and certificates required to be
delivered to them pursuant to ARTICLE VII prior to the first day of such
calendar quarter, the Applicable Margins for such calendar quarter shall (until
all of such financial statements and certificates are delivered to the Lenders)
be the highest of the Applicable Margins specified above.
"ARRANGER" - as defined in the preamble hereof.
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"ASSET" - any asset, property, interest (including equity interests) or
effect, real or personal, tangible or intangible, wherever situated.
"ASSIGNING LENDER" - as defined in SUBSECTION 13.11(b).
"ASSIGNMENT" - as defined in SUBSECTION 13.11(b).
"ASSIGNMENT AND ACCEPTANCE AGREEMENT" - as defined in SUBSECTION
13.11(b).
"AVAILABLE ACQUISITION LOAN COMMITMENTS" - at any time, an amount equal to
the excess, if any, of (i) the aggregate Acquisition Loan Commitments at such
time over (ii) the aggregate outstanding Acquisition Loans at such time.
"AVAILABLE REVOLVING CREDIT COMMITMENTS" - at any time, an amount equal to
the excess, if any, of (i) the aggregate Revolving Credit Commitments at such
time over (ii) the Revolving Credit Outstandings at such time.
"BALANCE SHEET DATE" - December 31, 1997.
"BANKBOSTON" - BankBoston, N.A., a national banking association organized
under the laws of the United States of America.
"BASE RATE" - a fluctuating rate of interest per annum equal to the
greater of (i) the rate established by the Agent from time to time at its office
in Boston as its "base rate" and (ii) the Federal Funds Rate plus 1/2%; in each
case, including any applicable adjustments for reserves or FDIC requirements.
The Base Rate is not necessarily intended to be the lowest rate of interest
determined by the Agent in connection with extensions of credit.
"BASE RATE LOANS" - Loans which bear interest at a rate based upon the
Base Rate.
"BORROWER" - as defined in the preamble hereof.
"BORROWER AFFILIATED COMPANIES" - collectively, the Borrower and each
of its Subsidiaries.
"BORROWER SECURITY AGREEMENT" - the Amended and Restated Borrower Security
Agreement, dated as of the Effective Date, by and between the Borrower and the
Collateral Trustee.
"BORROWER STOCK PLEDGE AGREEMENT" the Amended and Restated Borrower Stock
Pledge Agreement, dated as of the Effective Date, by and between the Borrower
and the Collateral Trustee.
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"BORROWER SUBSIDIARY SECURITY AGREEMENT" - the Amended and Restated
Borrower Subsidiary Security Agreement, dated as of the Effective Date, by and
among the Restricted Subsidiaries and the Collateral Trustee.
"BORROWING NOTICE" - as defined in SECTION 2.2.
"BUSINESS DAY" - any day other than Saturday, Sunday or any other day on
which commercial banks in Boston are authorized or required to close.
"CAPITAL EXPENDITURES" - as to any Person for any period, the sum of all
amounts which would, in accordance with GAAP consistently applied, be included
as additions to property, plant and equipment and other capital expenditures on
a consolidated statement of cash flows for such Person for such period.
"CAPITAL STOCK" - any and all shares, interests, participations or other
equivalents (however designated) of capital stock of a corporation, any and all
similar ownership interests in any Person which is not a corporation, and any
and all warrants, options or other rights to acquire any of the foregoing.
"CAPITALIZED LEASE" - any lease or similar instrument the obligations to
pay rent or other amounts under which constitute Capitalized Lease Obligations.
"CAPITALIZED LEASE OBLIGATIONS" - as to any Person, the obligations of
such Person to pay rent or other amounts under a lease of (or other agreement
conveying the right to use) real and/or personal property which obligations are
required to be classified and accounted for as a capital lease on a balance
sheet of such Person under GAAP and, for purposes of this Agreement, the amount
of such obligations shall be the capitalized amount thereof, determined in
accordance with GAAP.
"CASH" - as to any Person, such Person's cash and cash equivalents, as
defined in accordance with GAAP.
"CERCLA" - the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended.
"CHANGE IN CONTROL" - shall be deemed to have occurred if: (i) any Person
(other than a Permitted Holder) or any group (within the meaning of Section
13(d)(3) of the Exchange Act) of Persons (other than any Permitted Holders)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of
the Securities and Exchange Commission under the Exchange Act), directly or
indirectly, in one or more transactions, of Capital Stock of the Borrower
(including other Capital Stock convertible into such Capital Stock) representing
35% or more of the combined voting power of all Capital Stock of the Borrower
(on a fully-diluted basis) entitled to vote in the election of directors, other
than Capital Stock having such power only by reason of the happening of a
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contingency, or (ii) a change in the composition of the board of directors of
the Borrower shall have occurred such that a majority of the members of the
board of directors are not Continuing Directors.
"CHIEF FINANCIAL OFFICER" - Xx. Xxxxxx X. Xxxx or such other individual as
may perform the duties of "chief financial officer" (as commonly understood) of
the Borrower.
"CHRISTIAN" - Xxxxxx X. Xxxxxxxxx.
"CHRISTIAN NOTE" - the promissory note dated December 10, 1992, in the
original principal amount of $690,700, issued by Christian to the Borrower, as
amended by the First Amendment to Promissory Note, dated as of December 6, 1995,
between the Borrower and Christian.
"CLASS A COMMON STOCK" - the Class A Common Stock of the Borrower, par
value $.01 per share.
"CLASS B COMMON STOCK" - the Class B Common Stock of the Borrower, par
value $.01 per share.
"CLOSING COSTS" - for any period, all fees and costs (including legal,
accounting, appraisal, environmental site assessments and travel fees and costs)
incurred by the Borrower or any of its Restricted Subsidiaries in connection
with the financing contemplated by this Agreement or any Permitted Acquisition,
in each case to the extent expensed during such period.
"CO-AGENTS" - as defined in the preamble hereof.
"CODE" - the Internal Revenue Code of 1986, as it may be amended from time
to time.
"COLLATERAL" - collectively, all of the agreements, instruments,
contracts, assets, accounts, moneys and all of the income, proceeds and products
of any thereof, under or in respect of which the Agent or the Collateral
Trustee, for the benefit of the Lenders, shall have, at the time of reference to
the term "Collateral", any rights or interests as security for the payment or
performance of all or any part of the Obligations and shall, in any event,
include the Collateral (as defined in the respective Security Documents).
"COLLATERAL TRUST AGREEMENT" - the Amended and Restated Collateral Trust
Agreement, dated as of the Effective Date, by and among the Collateral Trustee,
the Lenders, the Issuing Bank and the Agent, and countersigned by the Principal
Companies, substantially in form attached hereto as EXHIBIT E.
"COLLATERAL TRUSTEE" - BankBoston, or any other Person succeeding to the
duties of Collateral Trustee under the Collateral Trust Agreement.
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"COMMITMENT FEES" - collectively, the Acquisition Loan Commitment Fees
and the Revolving Credit Commitment Fees.
"COMMITMENTS" - as to any Lender, collectively, such Lender's (i)
Revolving Credit Commitment, (ii) Term Loan Commitment, (iii) Acquisition Loan
Commitment and (iv) Incremental Facility Commitment of each Series of
Incremental Facility Loans.
"COMMON STOCK" - collectively, (i) the Class A Common Stock, (ii) the
Class B Common Stock and (iii) any other Permitted Capital Stock having economic
attributes substantially equivalent to the Class A Common Stock and the Class B
Common Stock.
"COMMUNICATIONS ACT" - the Federal Communications Act of 1934, as amended,
and the rules and regulations of the FCC thereunder, as now or hereafter in
effect.
"COMMUNICATIONS SYSTEM" - all of the properties and operating rights
constituting a complete, fully integrated system for transmitting radio or
television signals from a transmitter licensed by the FCC, together with any
subsystem which is ancillary to such system, and including any radio or
television network.
"CONSOLIDATED OR CONSOLIDATED" - as to any term used in this Agreement,
the relevant figures for any Person and its Subsidiaries on a consolidated basis
determined in accordance with GAAP after eliminating all intercompany items and
minority interests.
"CONSOLIDATED ADJUSTED NET INCOME" - for any period, net earnings (or
loss) of the Borrower and its Restricted Subsidiaries determined on a
consolidated basis in accordance with GAAP, but excluding: (i) any net gain or
loss arising from the sale of capital assets; (ii) any gain arising from any
write-up of assets; (iii) net earnings of any Person (other than a wholly-owned
Restricted Subsidiary of the Borrower) in which the Borrower or any of its
Subsidiaries has an ownership interest (including any such net earnings which
have actually been received by the Borrower or wholly-owned Restricted
Subsidiary in the form of cash distributions); (iv) any extraordinary earnings
or extraordinary losses, as such terms are interpreted under GAAP; (v) any
interest or other non-operating income of the Borrower or any of its
Subsidiaries; (vi) the effect of all barter transactions for such period; and
(vii) proceeds of any Interest Rate Contracts.
"CONSOLIDATED CURRENT ASSETS"- as of any date, all assets (other than
Cash) of the Borrower and its Restricted Subsidiaries on a consolidated basis
that, in accordance with GAAP, are properly classified as current assets as of
such date.
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"CONSOLIDATED CURRENT LIABILITIES" - as of any date, all liabilities of
the Borrower and its Restricted Subsidiaries on a consolidated basis properly
classified as current liabilities in accordance with GAAP (other than the
current portion of long-term Indebtedness for Borrowed Money, and calculated
without regard to (i) any repayment of Revolving Credit Loans with Net Proceeds
and (ii) any borrowing of Revolving Credit Loans the proceeds of which are used
to finance any Permitted Acquisition).
"CONSOLIDATED EBITDA" - for any period (subject to any adjustments
required by SECTION 10.4 and determined on a consolidated basis in accordance
with GAAP), Consolidated Adjusted Net Income for such period PLUS (A) (to the
extent, but only to the extent, the following amounts have reduced Consolidated
Adjusted Net Income for such period) the sum of (without duplication) (i)
Consolidated Total Interest Expense of the Borrower and its Restricted
Subsidiaries for such period, (ii) the aggregate amount of all federal, state
and local income taxes accrued by the Borrower and its Restricted Subsidiaries
for such period, (iii) the aggregate amount of depreciation and amortization
expense (including programming amortization expense) of the Borrower and its
Restricted Subsidiaries for such period, (iv) the aggregate amount of Closing
Costs, if any, incurred by the Borrower and its Restricted Subsidiaries during
such period, to the extent that such costs are non-recurring, and (v) the
aggregate amount of any non-cash charges of the Borrower during such period
relating to the issuance or vesting of stock options granted by the Borrower to
its employees or directors MINUS (B) the sum of (i) the aggregate amount of all
cash television programming payments made by the Borrower and its Restricted
Subsidiaries during such period and (ii) the aggregate amount of any cash
payments made by the Borrower during such period relating to any non-cash
charges described in CLAUSE (A)(V) of this definition.
"CONSOLIDATED TOTAL FUNDED DEBT" - at any time, on a consolidated basis,
all Indebtedness for Borrowed Money of the Borrower and its Restricted
Subsidiaries at such time, determined in accordance with GAAP. The aggregate
amount of Consolidated Total Funded Debt at any time shall include all accrued
interest which has become due and payable but has not been paid (whether or not
capitalized) and the accreted amount of any Subordinated Debt issued with
original issue discount.
"CONSOLIDATED TOTAL INTEREST EXPENSE" - for any period (subject to any
adjustments required by SECTION 10.4), without duplication, the sum of (i) the
interest expense of the Borrower and its Restricted Subsidiaries for such
period, (ii) the interest component of Capitalized Lease Obligations of the
Borrower and its Restricted Subsidiaries for such period, and (iii) all
Commitment Fees, Letter of Credit Fees and similar fees payable by the Borrower
and its Restricted Subsidiaries during such period in respect of Consolidated
Total Funded Debt; in each case determined on a consolidated basis in accordance
with GAAP.
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"CONSOLIDATED WORKING CAPITAL" - as of any date, the excess of
Consolidated Current Assets over Consolidated Current Liabilities as of such
date.
"CONTINUING DIRECTORS" - as of any date of determination, any member of
the Board of Directors of the Borrower who (i) was a member of such Board of
Directors on the Effective Date or (ii) was nominated for election or elected to
such Board of Directors either with the affirmative vote of a majority of the
directors who were either members of such Board of Directors on the Effective
Date or whose nomination or election was previously so approved.
"CONTRACTUAL OBLIGATIONS" - as to any Person, any provision of any note,
debenture or security issued by such Person or of any agreement, indenture,
mortgage, instrument or other undertaking to which such Person is a party or by
which it or any of its property is bound.
"CONVERSION DATE" - December 30, 2000.
"COPYRIGHT" - collectively, all of the following, to the extent that any
Principal Company now or hereafter has any right, title or interest therein: (i)
all copyright rights in any work subject to the copyright laws of the United
States or any other country, whether as author, assignee, licensee, transferee
or otherwise, and (ii) all registrations and applications for registration of
any such copyright in the United States or any other country, as well as all
registrations, recordings, supplemental registrations and pending applications
for registration in the United States Copyright Office or the copyright office
of any other country.
"COPYRIGHT SECURITY AGREEMENTS" - collectively, the Memoranda of Grant of
Security Interest in Copyrights from time to time entered into by and between
the Collateral Trustee and one or more of the Principal Companies with respect
to Material Federal Copyrights.
"CREDIT EXTENSIONS" - collectively, (i) any Loan and (ii) any Letter of
Credit.
"DEFAULT" - an event which, with notice or lapse of time, or both, would
constitute an Event of Default.
"DEFAULT RATE" - with respect to any amounts payable hereunder or under
any of the other Loan Documents, a rate per annum equal to 2% above the rate of
interest otherwise applicable to such amounts.
"DISTRIBUTION" - as to any Person, any direct or indirect: (i) declaration
or payment of any dividend on or in respect of any Capital Stock of such Person
(except, in the case of the Borrower, a dividend payable solely in shares of
Permitted Capital Stock); (ii) redemption, purchase or other retirement or
acquisition of any Capital Stock of such Person, through a Subsidiary of such
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Person or otherwise; or (iii) return of capital by such Person to its
shareholders or other equityholders as such; or (iv) other distribution on or in
respect of any Capital Stock of such Person (except, in the case of the
Borrower, any distribution made by the Borrower solely in shares of Permitted
Capital Stock in connection with any stock split or reverse stock split).
"DOLLARS" and "$" - lawful money of the United States of America.
"DRAWDOWN DATE" - the date on which any Credit Extension is made or is
to be made.
"EFFECTIVE DATE" - the date on which each of the conditions to
effectiveness set forth in SECTION 5.1 hereof shall have been waived or
satisfied and this Agreement becomes effective.
"EFFECTIVE DATE CERTIFICATE" - a certificate, to be dated as of the
Effective Date, executed and delivered to the Agent by the Borrower,
substantially in the form attached hereto as EXHIBIT C.
"EMPLOYEE BENEFIT PLAN OR PLAN" - any employee benefit plan within the
meaning of ss.3(3) of ERISA maintained or contributed to by any Principal
Company or any ERISA Affiliate, other than a Multiemployer Plan.
"ENVIRONMENTAL LAWS" - any judgment, decree, order, law, license, rule or
regulation pertaining to environmental matters, including without limitation
those arising under the Resource Conservation and Recovery Act ("RCRA"), CERCLA,
the Superfund Amendments and Reauthorization Act of 1986 ("XXXX"), the Federal
Clean Water Act, the Federal Clean Air Act, the Toxic Substances Control Act,
any state or local statute, regulation, ordinance, order or decree relating to
health, safety or the environment, or any law or regulation of any foreign
jurisdiction outside the United States relating to health, safety or the
environment.
"ENVIRONMENTAL LIABILITY" - any liability under any Environmental Laws for
any release of a Hazardous Substance, and any liability for the costs of any
clean up or other remedial action.
"ENVIRONMENTAL MATTER(S)" - a release of any Hazardous Substance into the
environment or the generation, treatment, storage or disposal of any Hazardous
Substance.
"ENVIRONMENTAL PROCEEDING" - any judgment, action, proceeding or
investigation pending before any Governmental Authority, including any
environmental regulatory body, with respect to or threatened against or
affecting any Borrower Affiliated Company or relating to the Assets or
liabilities of any of them, including in respect of any "facility" owned, leased
or operated by any of them under CERCLA or under any Requirement of Law in
respect
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thereof, or in connection with any release of any Hazardous Substance or the
generation, storage or disposal of any Hazardous Substance.
"ERISA" - the Employee Retirement Income Security Act of 1974, as it may
be amended from time to time, and the regulations promulgated thereunder.
"ERISA AFFILIATE" - any Person which is treated as a single employer with
the Borrower and its Subsidiaries under ss.414 of the Code.
"ERISA REPORTABLE EVENT" - a reportable event with respect to a Guaranteed
Pension Plan within the meaning of ss.4043 of ERISA.
"EUROCURRENCY RESERVE REQUIREMENTS" - for any day as applied to a
Eurodollar Loan, the aggregate (without duplication) of the rates (expressed as
a decimal fraction) of reserve requirements in effect on such day (including
basic, supplemental, marginal and emergency reserves under any regulations of
the Board of Governors of the Federal Reserve System or other Governmental
Authority having jurisdiction with respect thereto) prescribed for eurocurrency
funding (currently referred to as "Eurocurrency Liabilities" in Regulation D of
such Board) maintained by a member bank of such System.
"EURODOLLAR BASE RATE" - with respect to each day during each Interest
Period pertaining to a Eurodollar Loan, the average interest rate per annum
(rounded upward, if necessary, to the nearest 1/16th of 1%) at which the Agent
is offered Dollar deposits at or about 10:00 a.m., Boston time, two (2) Business
Days prior to the beginning of such Interest Period in the Eurodollar Interbank
Market where the eurodollar and foreign currency and exchange operations in
respect of its Eurodollar Loans are then being conducted for delivery on the
first day of such Interest Period, for the number of days comprised therein and
in an amount comparable to the amount of its Eurodollar Loan to be outstanding
during such Interest Period.
"EURODOLLAR BUSINESS DAY" - a Business Day on which dealings in Dollar
deposits are carried out in the Eurodollar Interbank Market.
"EURODOLLAR INTERBANK MARKET" - any lawful offshore market in which
deposits of Dollars are offered by foreign branches of U.S. banking institutions
and by foreign banking institutions to each other.
"EURODOLLAR LOANS" - Loans the rate of interest applicable to which is
determined on the basis of the Eurodollar Rate.
"EURODOLLAR RATE" - with respect to each day during each Interest Period
pertaining to a Eurodollar Loan, a rate per annum determined for such day in
accordance with the following formula (rounded upward, if necessary, to the
nearest 1/100th of 1%):
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EURODOLLAR BASE RATE
1.00 - Eurocurrency Reserve Requirements
"EVENT OF DEFAULT" - as defined in ARTICLE XI hereof.
"EXCESS CASH FLOW" - for any period, Consolidated EBITDA for such period
MINUS, without duplication, the sum of (i) federal, state and local income taxes
of the Borrower and its Subsidiaries for such period paid in cash by the
Borrower or any of its Restricted Subsidiaries (other than any such taxes
referred to in CLAUSE (ii) of the definition of Net Proceeds) during such
period, (ii) all Capital Expenditures of the Borrower and its Restricted
Subsidiaries made and permitted hereunder during such period (other than any
such Capital Expenditures made with proceeds of Indebtedness permitted by
SECTION 9.1(c) hereof and other than Capital Expenditures made in completing a
Permitted Acquisition), (iii) Consolidated Total Interest Expense for such
period required to be paid in cash by the Borrower or any of its Restricted
Subsidiaries during such period, (iv) the aggregate amount of mandatory
permanent payments or prepayments of principal of Consolidated Total Funded Debt
during such period (other than any Net Proceeds Payments or Excess Cash Flow
Payments), (v) the excess (if any) of Consolidated Working Capital as at the
last day of such period over Consolidated Working Capital as at the day before
the first day of such period and (vi) $1,000,000.
"EXCESS CASH FLOW PAYMENT" - as defined in SUBSECTION 2.5(e).
"EXCHANGE ACT" - the Securities and Exchange Act of 1934, as amended.
"EXISTING CREDIT AGREEMENT" - as defined in the recitals hereto.
"EXISTING LENDERS" - as defined in the recitals hereto.
"EXISTING LOANS" - means, collectively, the outstanding "Term Loans" and
"Revolving Credit Loans" (as such terms are defined in the Existing Credit
Agreement) made by the Existing Lenders under the Existing Credit Agreement.
"FASB" - the Financial Accounting Standards Board, and its predecessor
and successor organizations.
"FCC" - the Federal Communications Commission, or any successor agency,
commission, bureau, department or other Governmental Authority.
"FCC LICENSES" - any radio, television or other license, permit,
certificate of compliance, franchise, approval or authorization granted or
issued by the FCC.
"FDIC" - the Federal Deposit Insurance Corporation or any successor
thereof.
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"FEDERAL FUNDS RATE" - for any period, a fluctuating interest rate per
annum (based on a 365 day or 366 day year, as the case may be) equal for each
day during such period to the average of the rates of interest charged on
overnight federal funds transactions, with member banks of the Federal Reserve
System only, as published for any day which is a Business Day by the Federal
Reserve Bank of New York (or, in the absence of such publication, as reasonably
determined by the Agent).
"FEE LETTER" - the letter agreement, dated as of December 30, 1998, by and
among the Agent, the Arranger and the Borrower regarding payment of certain fees
by the Borrower to the Agent and the Arranger.
"FEES" - collectively, (i) the Agent's fee payable from time to time by
the Borrower to the Agent, for the Agent's own account, as provided in the Fee
Letter, (ii) the Commitment Fees, (iii) the Letter of Credit Fees, and (iv) any
fees (other than closing fees) payable by the Borrower in connection with the
Incremental Facility Loans or Incremental Facility Loan Commitments.
"FINAL" - as to an action by the FCC or its staff, the date on which the
time for rehearing, reconsideration, review or appeal of such action shall have
expired without objection or claim by any Person.
"FINANCIAL STATEMENTS" - any financial statements from time to time
delivered by the Borrower to the Agent or to any Lender pursuant to the
provisions of this Agreement, including any financial statements and schedules
thereto delivered by the Borrower on the Effective Date. As used herein,
"Financial Statements" do not include any Projections.
"FRANKLIN" - Franklin Communications, Inc., a Delaware corporation.
"GAAP" - when used in ARTICLE X hereof, whether directly or indirectly by
reference to a capitalized term used therein, principles which are consistent
with (i) the principles promulgated or adopted by FASB, as in effect on the
Balance Sheet Date, and (ii) the accounting practices of Borrower and its
Subsidiaries reflected in the consolidated financial statements of the Borrower
and its Subsidiaries as at and for the quarter ended on the Balance Sheet Date.
When used in general, other than as provided above, principles which are (i)
consistent with the principles promulgated or adopted by FASB, as in effect from
time to time, and (ii) consistently applied with past consolidated financial
statements of the Borrower and its Subsidiaries adopting the same principles. In
the event of any material change in the principles promulgated or adopted by
FASB after the Balance Sheet Date, the Borrower, the Agent and the Lenders will
undertake in good faith to negotiate appropriate changes to this definition of
GAAP and ARTICLE X hereof with the objective of having the Borrower's compliance
with the provisions of ARTICLE X determined by reference to GAAP as in effect
after such change, rather than GAAP as in effect on the Balance Sheet Date.
Until such changes have been agreed to in writing by the
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Borrower and the Required Lenders, the definition of GAAP and the provisions of
ARTICLE X shall remain unchanged and in full force and effect.
"GOVERNING DOCUMENTS" - as to any Person, the articles or certificate of
incorporation and by-laws or other organizational documents of such Person.
"GOVERNMENTAL AUTHORITY" - any nation or government, any state or other
political subdivision thereof, and any entity exercising any executive,
legislative, judicial, regulation, or administrative functions of or pertaining
to government.
"GUARANTOR(S)" - the Subsidiaries of the Borrower party to this Agreement
and any other Subsidiary of the Borrower which assumes the obligations of a
Guarantor under ARTICLE VI hereof.
"GUARANTEED PENSION PLAN" - any employee pension benefit plan within the
meaning of ss.3(2) of ERISA maintained or contributed to by any Principal
Company or any ERISA Affiliate the benefits of which are guaranteed on
termination in full or in part by the PBGC pursuant to Title IV of ERISA, other
than a Multiemployer Plan.
"GUARANTY" - in relation to any Person, any obligation, contingent or
otherwise, of such Person guarantying or having the economic effect of
guarantying any Indebtedness of any other Person (the "PRIMARY OBLIGOR") in any
manner, whether directly or indirectly, and including any obligation of such
Person, direct or indirect, (i) to purchase or pay (or advance or supply funds
for the purchase of payment of) such Indebtedness or to purchase (or to advance
or supply funds for the purchase of) any security for the payment of such
Indebtedness, (ii) to purchase property, securities or services for the purpose
of assuring the owner of such Indebtedness of the payment of such Indebtedness
or (iii) to maintain working capital, equity capital or other financial
statement condition or liquidity of the primary obligor so as to enable the
primary obligor to pay such Indebtedness.
"HARBISH" - Harbish Corp., a Wisconsin corporation.
"HAZARDOUS SUBSTANCES" - any hazardous substances as defined by 42
U.S.C. ss.9601(14), any pollutant or contaminant as defined by 42 U.S.C.
ss.9601(33) and any toxic substance, oil or hazardous materials or other
chemicals or substances regulated by any Environmental Laws.
"HISTORICAL FINANCIALS" - as defined in SUBSECTION 4.9(a).
"IMMATERIAL REAL PROPERTY" - real property owned by a Principal Company
other than Material Real Property.
"INCREMENTAL FACILITY" - as defined in the recitals hereto.
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"INCREMENTAL FACILITY COMMITMENT" - with respect to a Lender and for each
Series of Incremental Facility Loans, the commitment, if any, of such Lender to
make Incremental Facility Loans of such Series to the Borrower hereunder (as the
same may be reduced from time to time or terminated in accordance with the terms
hereof).
"INCREMENTAL FACILITY COMMITMENT PERIOD" - the period from and including
the Effective Date to the earlier to occur of (i) the day before the Conversion
Date and (ii) the termination of the Incremental Facility Commitments.
"INCREMENTAL FACILITY LOAN(S)" - as defined in SUBSECTION 2.1(d).
"INCREMENTAL FACILITY LOAN NOTE(S)" - as defined in SUBSECTION 2.4(d).
"INCREMENTAL FACILITY LOAN PAYMENT DATE" - as defined in SUBSECTION
2.5(d).
"INDEBTEDNESS" - with respect to any Person, all: (i) liabilities or
obligations, direct or contingent, which in accordance with GAAP would be
included in determining total liabilities as shown on the liability side of a
balance sheet of such Person at the date as of which Indebtedness is to be
determined, including contingent liabilities which, in accordance with GAAP,
would be set forth in a specific amount on the liability side of such balance
sheet, and Capitalized Lease Obligations of such Person; (ii) liabilities or
obligations of others for which such Person is directly or indirectly liable, by
way of Guaranty or otherwise; (iii) liabilities or obligations secured by Liens
on any assets of such Person, whether or not such liabilities or obligations
shall have been assumed by it; and (iv) liabilities or obligations of such
Person, direct or contingent, with respect to letters of credit issued for the
account of such Person and bankers acceptances created for such Person;
PROVIDED, HOWEVER, that in the case of liabilities or obligations in respect of
which the holder has recourse only against certain assets of a Person,
Indebtedness in respect of such liabilities or obligations shall be limited to
the fair market value of the assets with respect to which recourse is not
prohibited.
"INDEBTEDNESS FOR BORROWED MONEY" - without duplication, all Indebtedness
with respect to any of the following: (i) money borrowed (whether recourse or
non-recourse), including principal, interest and premiums, (ii) obligations
evidenced by a bond, debenture, note or other like written obligation to pay
money, (iii) Capitalized Lease Obligations, (iv) obligations under conditional
sales or other title retention agreements or secured by any Lien, (v) any
letters of credit or similar instruments (including reimbursement obligations
with respect thereto), (vi) the deferred unpaid purchase price of property or
services, except trade payables and accrued expenses incurred in the ordinary
course of business, or (vii) any Guaranty of any or all of the foregoing.
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"INDEMNITY, CONTRIBUTION AND SUBROGATION AGREEMENT" - the Indemnity,
Contribution and Subrogation Agreement, dated as of the Effective Date, by and
among the Borrower Affiliated Companies, substantially in the form attached
hereto as EXHIBIT B.
"INITIAL FACILITIES" - as defined in the recitals hereto.
"INSURANCE POLICIES" - as defined in SECTION 4.17.
"INTELLECTUAL PROPERTY SECURITY AGREEMENTS" - collectively, (i) the
Copyright Security Agreements, (ii) the Patent Security Agreements, and (iii)
the Trademark Security Agreements.
"INTEREST COVERAGE RATIO" - as defined in SECTION 10.3.
"INTEREST PERIOD" - with respect to any Eurodollar Loan, each period
commencing on the date such Loan is made or converted from a Base Rate Loan or
Base Rate Loans, or the last day of the next preceding Interest Period with
respect to such Eurodollar Loan, and ending on the same day in the first,
second, third or sixth calendar month as the Borrower may select as provided in
SECTION 2.2, except that each such Interest Period which commences on the last
Eurodollar Business Day of a calendar month shall end on the last Eurodollar
Business Day of the appropriate subsequent calendar month.
Notwithstanding the foregoing: (i) each Interest Period which would
otherwise end on a day which is not a Eurodollar Business Day shall end on the
next succeeding Eurodollar Business Day (or, if such next succeeding Eurodollar
Business Day falls in the next succeeding calendar month, on the next preceding
Eurodollar Business Day); (ii) no more than seven (7) Interest Periods for
Eurodollar Loans shall be in effect at the same time; and (iii) no Interest
Period shall end after the Maturity Date. In the event that the Borrower fails
to select the duration of any Interest Period for any Loan within the time
period and otherwise as provided in SECTION 2.2, such Loans will be
automatically converted into a Base Rate Loan on the last day of the preceding
Interest Period for such Loan.
"INTEREST RATE CONTRACTS" - any interest rate swap, cap, collar or other
agreement or arrangement designed to provide protection against fluctuation in
interest rates.
"INVESTMENT" - in relation to any Person, all investments by such Person,
by stock purchase, capital contribution, loan, advance, Guaranty of any
Indebtedness of any other Person, acquisition by such Person of any
Communications System or any business or all or any substantial part of the
Assets of any other Person or any division or Subsidiary of such Person or the
transfer or sale of property by such Person (otherwise than in the ordinary
course of the business of such Person) to any other Person for less than
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payment in full in cash of the transfer or sale price or the fair value thereof
(whichever of such price or value is higher).
"IRS" - Internal Revenue Service.
"ISSUE DATE" - in relation to any Letter of Credit, the day on which such
Letter of Credit is issued or to be issued by the Issuing Bank for the account
of the Borrower pursuant to this Agreement.
"ISSUING BANK" - with respect to any Letter of Credit, BankBoston and any
successor issuing bank.
"ISSUING BANK FEES" - as defined in SECTION 3.6.
"KAFE-FM and KPUG-AM ACQUISITION" - the acquisition by Saga Broadcast of
the assets of San Xxxx Radio, Inc. relating to radio stations KAFE-FM and
KPUG-AM licensed to Bellingham, Washington.
"KAVU-TV ACQUISITION"- the acquisition by Saga Broadcast of the assets of
Xxxxxxx Broadcasting Company of Texas and W. Xxxxxxx Xxxxxxx, Xx. relating to
(i) Television Broadcast Station KAVU-TV, Channel 25, licensed to Victoria,
Texas and (ii) Standard Broadcast Station KNAL, 1410 kHz, licensed to Victoria,
Texas and (iii) other low power television Stations K27EZ, K59FQ and K64EQ,
licensed to Victoria, Texas.
"KBFW-AM ACQUISITION" - the acquisition by Saga Broadcast of the assets of
Bellingham Broadcasting Corporation relating to radio station KBFW-AM licensed
to Bellingham, Washington.
"LAKEFRONT" - Lakefront Communication, Inc., a Delaware corporation.
"LAKEFRONT STOCK PLEDGE AGREEMENT" - the Stock Pledge Agreement, dated as
of the Effective Date, by and between Lakefront and the Collateral Trustee
"LEASES" - leases and subleases (other than Capitalized Leases), licenses
for the use of real property, easements, grants, pole attachment and conduit or
trench agreements and other attachment rights and similar instruments under
which any Principal Company has the right to use real or personal property or
rights of way.
"LENDER ASSIGNMENT AGREEMENTS" - the assignment agreements, each dated as
of the Effective Date, between certain Existing Lenders and the Agent and
acknowledged by the Borrower, each in substantially the form of EXHIBIT F
attached hereto (with such changes thereto as may be agreed to by the applicable
Existing Lender and the Agent).
"LENDERS" - as defined in the preamble hereof.
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"LETTER OF CREDIT" - any irrevocable standby letter of credit issued or to
be issued by the Issuing Bank for the account of the Borrower upon the terms and
subject to the conditions contained in this Agreement.
"LETTER OF CREDIT APPLICATION" - as defined in SECTION 3.2(b).
"LETTER OF CREDIT DISBURSEMENT" - a disbursement by the Issuing Bank to
the beneficiary of a Letter of Credit in connection with a drawing thereunder.
"LETTER OF CREDIT EXPOSURE" - at any time, the sum of (i) the aggregate
undrawn face amount of all Letters of Credit outstanding at such time, and (ii)
the aggregate amount of all drawings under Letters of Credit for which the
Issuing Bank shall not have been reimbursed by the Borrower as provided in
SECTION 3.4. The amount of any Lender's Letter of Credit Exposure at any time
shall be the product of (i) the Letter of Credit Exposure, multiplied by (ii)
such Lender's Revolving Credit Commitment Percentage at such time.
"LETTER OF CREDIT FEES" - as defined in SECTION 3.6.
"LIEN" - any mortgage, deed of trust, pledge, security interest,
encumbrance, lien or charge of any kind (including any agreement to give any of
the foregoing), any conditional sale or other title retention agreement, any
lease in the nature of any of the foregoing, and the filing of or agreement to
give any financing statement under the Uniform Commercial Code of any
jurisdiction.
"LOANS" - collectively, (i) Revolving Credit Loans, (ii) Term Loans, (iii)
Acquisition Loans and (iv) Incremental Facility Loans. Loans of different types
made or converted from Loans of other types on the same day (or of the same type
but having different Interest Periods) shall be deemed to be separate Loans for
all purposes of this Agreement.
"LOAN DOCUMENTS" - collectively (i) this Agreement, (ii) the Notes, (iii)
the Security Documents, (iv) the Indemnity, Contribution and Subrogation
Agreement, (v) each Assignment and Acceptance Agreement, (vi) the Lender
Assignment Agreement, (vii) the Letter of Credit Applications, (viii) the Fee
Letter and (ix) any other documents, instruments or agreements executed and/or
delivered in connection with the foregoing or from time to time designated by
the Borrower and the Agent as a Loan Document hereunder.
"MATERIAL ADVERSE EFFECT" - any of the following: (i) any material adverse
effect on the business, Assets, operations, prospects or condition, financial or
otherwise, of the Borrower and its Restricted Subsidiaries taken as a whole,
(ii) any material impairment of the ability of any Principal Company to perform
any of its material obligations under any Loan Document, or (iii) any material
impairment of the validity or enforceability of any Loan Document or any
material impairment of the rights, remedies or benefits available to, the
Collateral Trustee, the Agent or any Lender under any Loan Document.
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"MATERIAL FEDERAL COPYRIGHTS" - with respect to any Principal Company, all
copyrights of such Principal Company which (i) are registered in the United
States Copyright Office, and (ii) the Agent has determined (A) are material to
the business of the Principal Companies, taken as a whole, or (B) have an
economic value which is not insubstantial compared to all other Assets of all
the Principal Companies, taken as a whole.
"MATERIAL FEDERAL PATENTS" - with respect to any Principal Company, all
patents of such Principal Company which (i) are registered in the United States
Patent and Trademark Office, and (ii) the Agent has determined (A) are material
to the business of the Principal Companies, taken as a whole, or (B) have an
economic value which is not insubstantial compared to all other Assets of all
the Principal Companies, taken as a whole.
"MATERIAL FEDERAL TRADEMARKS" - with respect to any Principal Company, all
trademarks of such Principal Company which (i) are registered in the United
States Patent and Trademark Office, and (ii) the Agent has determined (A) are
material to the business of the Principal Companies, taken as a whole, or (B)
have an economic value which is not insubstantial compared to all other Assets
of all the Principal Companies, taken as a whole.
"MATERIAL INTELLECTUAL PROPERTY" - with respect to any Principal Company,
any Material Federal Trademarks, any Material Federal Copyrights, and any
Material Federal Patents.
"MATERIAL LABOR DISPUTE" - with respect to any Person, any strike, work
stoppage, material unfair labor practice claim or charge, arbitration or other
material labor dispute against or affecting such Person.
"MATERIAL REAL PROPERTY" - any and all real property owned by any
Principal Company on which is located a tower, transmitter or antenna system
used in connection with the operations of any Station or Stations, if (but only
if) the aggregate Consolidated EBITDA attributable to such Station or Stations
for the Reference Period most recently ended equals or exceeds ten percent (10%)
of Consolidated EBITDA of the Principal Companies for such Reference Period.
"MATURITY DATE" - June 30, 2006, or such earlier date on which all the
Commitments of the Lenders shall terminate in accordance with the terms hereof.
"MICHIGAN FARM RADIO NETWORK ACQUISITION" - the acquisition of a Michigan
radio network d/b/a "Michigan Farm Radio Network" through the merger of a new
formed subsidiary of the Borrower with Great Lakes Radio Network, Inc.
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"MORTGAGES" - collectively, the instruments of mortgage executed and
delivered by the Principal Companies in favor of the Collateral Trustee
(including any predecessors to BankBoston as collateral trustee) from time to
time with respect to Material Real Properties.
"MOST RECENT REFERENCE PERIOD" means the most recent Reference Period for
which financial statements of the Borrower and its Restricted Subsidiaries have
been delivered to the Lenders in compliance with ARTICLE VII hereof.
"MULTIEMPLOYER PLAN" - any multiemployer plan within the meaning of
ss.3(37) of ERISA maintained or contributed to by any Principal Company or any
ERISA Affiliate.
"NET PROCEEDS" - with respect to any Prepayment Event (i) the gross amount
of cash consideration payable to or receivable by any Principal Company in
respect of such Prepayment Event, LESS (ii) the amount, if any, of all estimated
taxes payable as a result of gain realized with respect to such Prepayment
Event, whether or not payable during the taxable year in which such Prepayment
Event occurred, and less (iii) estimated fees, commissions, costs and other
expenses (other than those payable to any Affiliate) which are incurred in
connection with such Prepayment Event and are payable by the seller or the
transferor of the assets or property to which such Prepayment Event relates, but
only to the extent not already deducted in arriving at the amount referred to in
CLAUSE (i). To the extent that the estimate of taxes payable, or fees,
commissions, costs and other expenses incurred, proves incorrect, an adjustment
shall be made by way of an additional payment to the Agent, for the ratable
benefit of the Lenders, or a credit against amounts payable in respect of any
future Prepayment Events, as applicable.
"NET PROCEEDS PAYMENTS" - as defined in SUBSECTION 2.5(f).
"NEW LENDERS" - as defined in the recitals hereto.
"NEW TYPE LOAN" - as defined in SECTION 2.23.
"NEXT REFERENCE PERIOD" - with respect to any Reference Period, the
Reference Period commencing immediately after the end of such Reference Period.
"NOTES" - collectively (i) the Term Loan Notes, (ii) the Revolving Credit
Notes, (iii) the Acquisition Loan Notes, and (iv) the Incremental Facility Loan
Notes.
"OBLIGATIONS" - collectively, all of the Indebtedness, liabilities and
obligations, whether direct or indirect, joint or several, absolute or
contingent, matured or unmatured, liquidated or unliquidated, secured or
unsecured, arising by contract, operation of law or otherwise, of any Principal
Company (i) to any Lender, the Issuing Bank, the Agent or the Collateral
Trustee, whether
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now existing or hereafter arising, whether or not currently contemplated,
arising under any Loan Document, and (ii) under any Interest Rate Contract
entered into with any Person that was a Lender or an Affiliate of any Lender
hereunder or under the Existing Credit Agreement at the time such Person entered
into such Interest Rate Contract.
"PARTICIPANT" - as defined in SUBSECTION 13.11(a).
"PATENT SECURITY AGREEMENTS" - collectively, the Patent Collateral
Assignment and Security Agreements from time to time entered into by and between
the Collateral Trustee and one or more of the Principal Companies with respect
to Material Federal Patents.
"PBGC" - Pension Benefit Guaranty Corporation.
"PERMITTED ACQUISITION" - any Acquisition after the Effective Date by the
Borrower or any of its Restricted Subsidiaries of any Communications System so
long as, in each case, either the Required Lenders have given their written
consent to such Acquisition or all of the following conditions have been
satisfied:
(i) after giving effect to such Acquisition, the Assets comprising
such Communications System (as used in this definition, the "ACQUIRED
ASSETS") shall be owned exclusively by the Borrower or a wholly-owned
Restricted Subsidiary of the Borrower;
(ii) if the Acquired Assets are owned by a newly-formed or
newly-acquired Restricted Subsidiary of the Borrower, such Restricted
Subsidiary (and any parent of such Restricted Subsidiary that is not
already a Principal Company) shall have executed and delivered to the
Agent and the Lenders (A) an accession agreement reasonably satisfactory
to the Agent, pursuant to the terms of which such Restricted Subsidiary
(and such parent or parents, if applicable) (1) becomes a party to this
Agreement as a Principal Company and as a Guarantor, becomes a party to
the Borrower Subsidiary Security Agreement as a Restricted Subsidiary,
becomes a party to the Indemnity, Contribution and Subrogation Agreement
as a "Borrower Affiliated Company", and becomes a party to any other Loan
Document as the Agent may reasonably request, and (2) agrees to perform
and observe all of the obligations and covenants (including all
obligations and covenants contained in ARTICLE VI hereof) of a Principal
Company and a Guarantor hereunder, of a Restricted Subsidiary under the
Borrower Subsidiary Security Agreement, of a Borrower Affiliated Company
under the Indemnity, Contribution and Subrogation Agreement, and of the
appropriate party under any other Loan Document to which it becomes a
party and (B) one or more Intellectual Property Security Agreements, if
applicable;
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(iii) the Borrower shall have demonstrated to the reasonable
satisfaction of the Agent (based on, among other things, operating and
financial projections and PRO FORMA financial statements delivered to the
Agent and certified by the Chief Financial Officer) that, immediately
after giving effect to the Acquisition (including the making of any Loans
and the incurrence of any Indebtedness required to finance such
Acquisition), all covenants (including all covenants contained in ARTICLE
X hereof) contained herein (A) would have been satisfied on a PRO FORMA
basis as at the end of and for the Most Recent Reference Period, and (B)
will be satisfied on a PRO FORMA basis through the period ending two years
after the date of Acquisition. The Agent acknowledges that, as of the date
hereof, based on the information provided to it by the Borrower through
the date hereof, the requirements of this paragraph (iii) are satisfied
with respect to all Scheduled Acquisitions. Notwithstanding such
acknowledgement by the Agent, the Borrower shall still be required to
satisfy the requirements of this PARAGRAPH (iii) for any Scheduled
Acquisition prior to the completion of such Scheduled Acquisition;
(iv) no Default or Event of Default is continuing immediately
prior to such Acquisition, and no Default or Event of Default would result
from such Acquisition;
(v) if the Total Consideration (as defined below) payable by the
Principal Companies in connection with such Acquisition would be greater
than $20,000,000, the Required Lenders have approved such Acquisition in
writing (the Required Lenders having no obligation to do so);
(vi) if the Total Consideration (as defined below) payable by the
Borrower and its Restricted Subsidiaries in connection with such
Acquisition would be greater than $10,000,000, the Agent shall have
received such due diligence materials relating to the Acquisition as the
Agent shall have reasonably requested, and the Agent shall be reasonably
satisfied with the results of its review of such materials;
(vii) the Agent shall have received satisfactory evidence that the
Communication System to be acquired has complied with, is in compliance
with, and, after the Acquisition, will be in compliance with, in all
material respects all applicable Requirements of Law, including the
Communications Act and all Environmental Laws; and
(viii) prior to any such Acquisition, the Borrower shall have
delivered to the Agent the definitive acquisition agreement between the
Borrower and/or applicable Restricted Subsidiary or Subsidiaries and the
applicable seller.
As used in this definition, "TOTAL CONSIDERATION" means all consideration
payable by any Principal Company in connection with any Acquisition,
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including cash payments at closing, the principal amount of any promissory notes
issued by any Principal Company, the principal amount of any amounts payable by
any Principal Company in consideration for any non-compete covenant, and the
amount of any Indebtedness for Borrowed Money assumed by any Principal Company
(but excluding any consideration paid by the issuance of Permitted Capital
Stock).
The purchase by any Principal Company of any Communication System pursuant to
any local market agreement or time brokerage agreement entered into any
Principal Company in connection with any Permitted LMA Transaction must satisfy
all of the above requirements.
"PERMITTED CAPITAL STOCK" - Capital Stock of the Borrower with respect to
which the Borrower has no obligation to make any Distributions prior to the
payment in full in cash of all the Obligations.
"PERMITTED HOLDER" means (i) Christian or (ii) any of Christian's
Permitted Transferees.
"PERMITTED LMA TRANSACTION" - any agreement or arrangement pursuant to
which the Borrower or any of its Restricted Subsidiaries purchases broadcast
time on any Communications System (other than a Station) for the purpose of
programming such broadcast time or any other similar arrangement, so long as in
each case, either the Required Lenders have given their written consent to such
transaction or:
(i) if the Borrower or any of its Restricted Subsidiaries has the
obligation to purchase such Communications System pursuant to or in
connection with such agreement, the requirements set forth in CLAUSES (i)
through (viii) of the definition of "Permitted Acquisition" would be met;
for purposes of determining whether such agreement or arrangement would
meet such requirements, references in such clauses to the "Acquisition" or
any similar reference shall be deemed to refer to the Acquisition
contemplated by such agreement. This CLAUSE (i) shall not apply if the
Borrower or its Restricted Subsidiaries has a mere option to purchase such
Communication System;
(ii) the Borrower shall have demonstrated to the reasonable
satisfaction of the Agent that the Pro Forma Fixed Charges Coverage Ratio
(as defined in SECTION 10.2), after giving PRO FORMA effect to the
transactions contemplated by such agreement or arrangement, shall be not
less than the ratio then required by SECTION 10.2. The Agent acknowledges
that, as of the date hereof, the requirements of this paragraph (ii) are
satisfied with respect to the local marketing agreement to be entered into
by Saga Broadcast upon consummation of the KAVU-TV Acquisition.
Notwithstanding such acknowledgment by the Agent, the Borrower shall still
be required to satisfy the requirements of this
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paragraph (ii) for any Permitted LMA Transaction prior to the completion
of such Permitted LMA Transaction; and
(iii) no Default or Event of Default is continuing immediately
prior to the effectiveness of such agreement or arrangement, and no
Default or Event of Default would result from such agreement or
arrangement.
"PERMITTED LIENS" - as to any Principal Company:
(i) Liens to secure taxes, assessments, levies or other
governmental charges imposed upon such Principal Company, to the extent
(in each case) that the payment thereof shall not at the time be required
to be made in accordance with the provisions of SECTION 8.1;
(ii) deposits or pledges made by such Principal Company in the
ordinary course of its business (A) to secure payment of workers'
compensation, unemployment insurance, or other forms of governmental
insurance or benefits, (B) to secure performance of bids, tenders,
statutory obligations, leases and contracts (other than contracts relating
to borrowed money), or (C) to secure surety, appeal, indemnity or
performance bonds, in each case in the ordinary course of business of such
Principal Company, and in each case only to the extent that payment
thereof shall not at the time be required to be made in accordance with
the provisions of SECTION 8.1;
(iii) Liens in respect of judgments or awards against such
Principal Company with respect to which such Principal Company shall
currently be processing an appeal or proceedings for review; PROVIDED,
that (A) appropriate reserves with respect thereto have been established
and maintained on the consolidated books of the Principal Companies in
accordance with GAAP and (B) no such Lien or judgment constitutes an Event
of Default described in SUBSECTION 11.1(i) or (o);
(iv) Liens of carriers, warehousemen, mechanics, landlords or
materialmen incurred in the ordinary course of the business of such
Principal Company, in each case for sums not at the time required to be
paid in accordance with provisions of SECTION 8.1; and
(v) easements, rights-of-way, zoning and similar restrictions and
other similar encumbrances or title defects which, in the aggregate, are
not substantial 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 such Principal Company.
"PERMITTED SALE" - any Sale by any Principal Company (i) in the ordinary
course of its business of immaterial Assets or obsolete or unusable equipment,
(ii) in the ordinary course of its business of other equipment as long as such
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equipment is replaced by equipment of like function and comparable value within
a period of three months after the date of such Sale or (iii) in the ordinary
course of its business of Immaterial Real Property; PROVIDED, HOWEVER, that (A)
the total consideration payable to or receivable by the Principal Companies in
connection with any Permitted Sale (1) is an amount not less than the fair
market of the Assets subject to such Sale and (2) consists of at least 90% cash
which is payable at the closing of such Sale, and (B) no Sale shall be deemed a
Permitted Sale if it occurs in connection with any Sale of a Communications
System or other business by any Principal Company.
"PERMITTED SUBORDINATED SELLER DEBT" - Seller Debt incurred in connection
with any Permitted Acquisition which:
(i) is not (A) Guarantied in any manner by any Principal Company
unless such Guaranty is by the Borrower and is subordinated in right of
payment and exercise of remedies to the prior payment in full in cash of
all the Obligations, and any Indebtedness which refunds, refinances or
replaces the Obligations, pursuant to a subordination agreement among the
holder of such Seller Debt, the Borrower and the Agent which is acceptable
in all respects to the Agent; or (B) secured by any Assets of any
Principal Company;
(ii) requires no principal payments prior to one year after the
Maturity Date;
(iii) bears interest at a fixed annual rate not in excess of 10%;
(iv) is subordinated in right of payment and exercise of remedies
to the prior payment in full in cash of all the Obligations, and any
Indebtedness which refunds, refinances or replaces the Obligations,
pursuant to a subordination agreement among the holder of such Seller
Debt, the issuer of such Seller Debt and the Agent which is acceptable in
all respects to the Agent; and
(v) is in a face amount at the time of incurrence thereof which,
when added to the aggregate amount of all principal payment obligations of
the Borrower in respect of any other Seller Debt, does not exceed
$3,000,000.
"PERMITTED TRANSFEREES" - with respect to any Person, (i) any Affiliate of
such Person, (ii) the heirs, executors, administrators, testamentary trustees,
legatees or beneficiaries of any such Person or (iii) a trust, the primary
beneficiaries of which, or a corporation, partnership or other entity, the
stockholders or general or limited partners or other owners of which, include
only such Person or his or her spouse or lineal descendants, in each case to
whom such Person has transferred the beneficial ownership of any Capital Stock
of the Borrower.
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"PERSON" - an individual, a corporation, a partnership, a joint venture, a
trust or unincorporated organization, a joint stock company or other similar
organization, a government or any political subdivision thereof, a court, or any
other legal entity, whether acting in an individual, fiduciary or other
capacity.
"PREPAYMENT EVENT" - any Sale (other than a Permitted Sale), or any series
of related Sales, of any Asset or Assets of any Principal Company (including
Capital Stock of any Restricted Subsidiary) which takes place at any time after
the date hereof and pursuant to which the gross amount of consideration payable
to or receivable by the Borrower Affiliated Companies exceeds $2,000,000.
"PRINCIPAL COMPANIES" - collectively, (i) the Borrower and (ii) the
Restricted Subsidiaries.
"PRINCIPAL OFFICE" - the principal office of the Agent in the United
States, presently located at 000 Xxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000.
"PRO FORMA FIXED CHARGES" - for any Reference Period, without duplication,
the sum of (i) all interest in respect of Consolidated Total Funded Debt paid by
the Borrower and its Restricted Subsidiaries during such Reference Period, (ii)
all Commitment Fees paid by the Borrower and its Restricted Subsidiaries during
such Reference Period, (iii) the aggregate amount of Capital Expenditures made
by the Borrower and its Restricted Subsidiaries during such Reference Period
(iii) the aggregate amount of all federal, state or local income taxes paid by
the Borrower and its Restricted Subsidiaries during such Reference Period, and
(iv) all principal in respect of Consolidated Total Funded Debt scheduled to be
paid by the Principal Companies during the Next Reference Period, calculated
assuming:
(A) that no Acquisition Loans or Incremental Facility Loans are
made during such Next Reference Period; and
(B) that no Term Loans, Acquisition Loans or Incremental Facility
Loans are prepaid during such Next Reference Period, and that the only
payments of Term Loans, Acquisition Loans and Incremental Facility Loans
made during such Next Reference Period are scheduled amortization payments
made on the respective due dates thereof.
"PROJECTIONS" - the projections of the Borrower delivered on or prior to
the Effective Date which shall be certified by the Chief Financial Officer and
identified as projections through the Maturity Date.
"PUBLIC FILINGS" - as defined in SECTION 7.5.
"PURCHASING LENDER" - as defined in SUBSECTION 13.11(b).
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"QUARTERLY DATES" - the last Business Day of each March, June, September
and December, the first of which shall be December 31, 1998.
"REFERENCE PERIOD" - each period of four consecutive fiscal quarters of
the Borrower.
"REGULATION D" - Regulation D of the Board of Governors of the Federal
Reserve System, as the same may be amended or supplemented from time to time.
"REGULATORY CHANGE" - as to any Lender, any change after the date of this
Agreement in United States federal, state or foreign laws or regulations
(including Regulation D and the laws or regulations which designate any
assessment rate relating to certificates of deposit or otherwise) or the
adoption or making after such date of any interpretations, directives or
requests applying to a class of banks, including such Lender, of or under any
United States federal, state or foreign laws or regulations (whether or not
having the force of law) by any court or governmental or monetary authority
charged with the interpretation or administration thereof.
"REINVESTMENT COLLATERAL ACCOUNT" - as defined in the Collateral Trust
Agreement.
"REQUIRED ACQUISITION LOAN LENDERS" - at any time, Lenders the sum of
whose (a) outstanding Acquisition Loan Commitments represent at least fifty-one
percent (51%) of the Total Acquisition Loan Commitment or (b) after the
termination of the Acquisition Loan Commitment Period, outstanding Acquisition
Loans represent at least fifty-one percent (51%) of all outstanding Acquisition
Loans made by the Lenders.
"REQUIRED INCREMENTAL FACILITY LENDERS" - at any time, with respect to any
Series of Incremental Facility Loans, Lenders the sum of whose (a) outstanding
Incremental Facility Commitments of such Series of Incremental Facility Loans
represent at least fifty-one percent (51%) of the aggregate Incremental Facility
Commitments of such Series, or (b) after the termination of the Incremental
Facility Commitment Period, outstanding Incremental Facility Loans of such
Series represent at least fifty-one percent (51%) of all outstanding Incremental
Facility Loans of such Series made by the Lenders.
"REQUIRED LENDERS" - at any time, Lenders the sum of whose (a) outstanding
(i) Term Loan Commitments or, after the termination thereof, outstanding Term
Loans, (ii) Revolving Credit Commitments or, after the termination thereof,
outstanding Revolving Credit Loans, (iii) Acquisition Loans Commitments or,
after the termination thereof, outstanding Acquisition Loans, (iv) Incremental
Facility Commitments of each Series of Incremental Facility Loans or, after the
termination thereof, outstanding Incremental Facility Loans and (v) Letter of
Credit Exposure, represent at least 51% of the sum of (b) all outstanding (i)
Term Loan Commitments or, after the termination thereof, all
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outstanding Term Loans, (ii) Revolving Credit Commitments or, after the
termination thereof, all outstanding Revolving Credit Loans, (iii) Acquisition
Loan Commitments or, after the termination thereof, all outstanding Acquisition
Loans, (iv) Incremental Facility Commitments of each Series of Incremental
Facility Loans or, after the termination thereof, all outstanding Incremental
Facility Loans and (v) Letter of Credit Exposure.
"REQUIRED REVOLVING CREDIT LENDERS" - at any time, Lenders the sum of
whose (a) outstanding Revolving Credit Commitments represent at least fifty-one
percent (51%) of the Total Revolving Credit Commitment, or (b) after the
termination of the Revolving Credit Commitments, outstanding Revolving Credit
Loans represent at least fifty-one percent (51%) of all outstanding Revolving
Credit Loans made by Lenders.
"REQUIRED TERM LOAN LENDERS" - at any time, Lenders the sum of whose (a)
outstanding Term Loan Commitments represent at least fifty-one percent (51%) of
the Total Term Loan Commitment, or (b) after the termination of the Term Loan
Commitments, outstanding Term Loans represent at least fifty-one percent (51%)
of all outstanding Term Loans made by Lenders.
"REQUIREMENT OF LAW" - as to the any Principal Company, (i) the Governing
Documents of such Principal Company, and (ii) any law, treaty, rule or
regulation (whether Federal, state, local or foreign) or determination of any
arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Principal Company or any of its property or to which
such or any of its property is subject.
"RESERVED COMMITMENT AMOUNT" - as defined in SUBSECTION 2.1(a).
"RESTRICTED PAYMENTS" - with reference to any Principal Company, (i) any
Distribution (other than any distribution by the Borrower of Class A Common
Stock to any Person in connection with such Person's conversion of any Class B
Common Stock owned by such Person into Class A Common Stock) or (ii) any
optional retirement, repurchase, defeasance or redemption of, any acquisition
for value of, or any repayment or prepayment of, any Indebtedness for Borrowed
Money (other than Obligations) of any Principal Company other than as required
by mandatory or scheduled repayment obligations.
"RESTRICTED SUBSIDIARY" - any Subsidiary of the Borrower other than an
Unrestricted Subsidiary.
"REVOLVING CREDIT COMMITMENT" - with respect to a Lender, the commitment
of such Lender to make Revolving Credit Loans to the Borrower in the amount set
forth on SCHEDULE 1 hereto, as the same may be reduced from time to time or
terminated in accordance with the terms hereof.
"REVOLVING CREDIT COMMITMENT PERCENTAGE" - with respect to each Revolving
Credit Lender, the percentage of such Lender's Revolving Credit
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Commitment to the Total Revolving Credit Commitment or, after the termination of
the Revolving Credit Commitments, the percentage of such Lender's outstanding
Revolving Credit Loans to the aggregate outstanding Revolving Credit Loans.
"REVOLVING CREDIT COMMITMENT FEES" - as defined in SECTION 2.8(a).
"REVOLVING CREDIT LENDER" - each Lender having a Revolving Credit
Commitment or holding any Revolving Credit Loans.
"REVOLVING CREDIT LOAN(S)" - as defined in SECTION 2.1(a).
"REVOLVING CREDIT NOTE(S)" - as defined in SECTION 2.4(a).
"REVOLVING CREDIT OUTSTANDINGS" - at any time, the sum of (i) the
aggregate principal amount of Revolving Credit Loans outstanding at such time,
and (ii) the Letter of Credit Exposure at such time.
"SAGA BROADCAST" - Saga Broadcasting Corp., a Delaware corporation.
"SAGA BROADCAST STOCK PLEDGE AGREEMENT" - the Amended and Restated Stock
Pledge Agreement, dated as of the Effective Date, by and between Saga Broadcast
and the Collateral Trustee.
"SAGA OF ICELAND" - Saga Communications of Iceland, Inc., a Delaware
corporation.
"SAGA OF ILLINOIS" - Saga Communications of Illinois, Inc., a Delaware
corporation.
"SAGA OF IOWA" - Saga Communications of Iowa, Inc., a Delaware
corporation.
"SAGA OF IOWA PLEDGE AGREEMENT" - the Amended and Restated Saga of Iowa
Pledge Agreement, dated as of the Effective Date, by and between Saga of Iowa
and the Collateral Trustee.
"SAGA OF MICHIGAN" - Saga Communications of Michigan, Inc., a Delaware
corporation.
"SAGA OF NEW ENGLAND" - Saga Communications of New England, Inc., a
Delaware corporation.
"SAGA QUAD STATES" - Saga Quad States Communications, Inc., a Delaware
corporation.
"SAGA REAL ESTATE" - Saga Communications of Iowa Real Estate, Inc., a
Delaware corporation.
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"SALE" - a sale, lease, transfer or other disposition of any Asset.
"SCHEDULED ACQUISITIONS" - collectively, (i) the KAVU-TV Acquisition, (ii)
the KBFW-AM Acquisition, and (iii) the KAFE-FM and KPUG-AM Acquisition and (iv)
the Michigan Farm Radio Network Acquisition.
"SCHEDULED ACQUISITION DOCUMENTS" - all agreements, documents and
instruments executed and/or delivered in connection with any Scheduled
Acquisition.
"SECONDARY STATIONS" - FM Translator Stations W270AH, Peterborough, New
Hampshire, and W272AX, Keene, New Hampshire, and such other FM translator
stations acquired by any Principal Company after the Effective Date.
"SECURED CREDITORS" - as defined in the Collateral Trust Agreement.
"SECURITIES ACT" - the Securities Act of 1933, as amended.
"SECURITY DOCUMENTS" - (i) the Collateral Trust Agreement, (ii) the Stock
Pledge Agreements, (iii) the Borrower Security Agreement, (iv) the Borrower
Subsidiary Security Agreement, (v) the Intellectual Property Security
Agreements, (vi) the Mortgages, and (vii) any other instruments or documents
from time to time securing or guaranteeing any of the Obligations or from time
to time designated by the Borrower and the Agent as Security Documents
hereunder.
"SELLER DEBT" - Indebtedness (other than Loans or Letters of Credit) of
any Principal Company (whether in respect of promissory notes, non-compete
covenants or otherwise) incurred in connection with any Acquisition.
"SELLER DEBT DOCUMENTS" - all agreements, instruments or other documents
evidencing or relating to Seller Debt.
"SERIES" - as defined in SECTION 2.1(d).
"SPECIAL COUNSEL FEE AGREEMENT" - as defined in SUBSECTION 5.1(i).
"SPECIFIED DEFAULT" - as of any date of determination, any Event of
Default (other than an Event of Default described in Sections 11.1(d), (f) or
(j)) which shall not have been remedied within five (5) days after notice
thereof shall have been given to the Borrower by the Agent.
"STATIONS" - collectively, (i) radio station WAQY-FM, licensed to
Springfield, Massachusetts; (ii) radio station WAQY (AM), licensed to East
Longmeadow, Massachusetts; (iii) radio stations WZAN (AM), WPOR-FM, WGAN (AM)
and WMGX (FM) licensed to Portland, Maine; (iv) radio stations WFEA (AM) and
WZID (FM) licensed to Manchester, New Hampshire, (v) radio stations
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WVKO (AM) and WSNY (FM) licensed to Columbus, Ohio, (vi) radio stations WKLH
(FM), WJYI (AM) and WZLR-FM licensed to Milwaukee, Wisconsin, (vii) radio
station WNOR (AM) and WNOR-FM licensed to Norfolk, Virginia, (viii) radio
stations WLRW (FM) and WIXY (FM) licensed to Champaign, Illinois, (ix) radio
station WYMG (FM) licensed to Jacksonville, Illinois, (x) radio stations KRNT
(AM), KSTZ (FM), KXTK AM and KIOA-FM licensed to Des Moines, Iowa, (xi) radio
station WYNZ (FM) licensed to Westbrook, Maine, (xii) radio stations WQQL (FM),
WDBR (FM) and WTAX (AM) licensed to Springfield, Illinois, (xiii) radio station
WAFX (FM) licensed to Suffolk, Virginia, (xiv) television station KOAM - TV
licensed to Pittsburg, Kansas, (xv) radio stations WNAX (AM) and KCLH-FM
licensed to Yankton, South Dakota, (xvi) radio stations KGMI-AM and KISM-FM
licensed to Bellingham, Washington, (xvii) WQQL, licensed to Bedford, New
Hampshire, (xviii) WPNT (FM) licensed to Brookfield, Wisconsin, (xix) WFMR (FM)
licensed to Menomonee Falls, Wisconsin, (xx) KAZR (FM) licensed to Pella, Iowa,
(xxi) KLTI-FM licensed to Ames, Iowa, (xxii) WYXY (FM) licensed to Lincoln,
Illinois, (xxiii) W270AH (FM) licensed to Peterborough, New Hampshire, (xxiv)
W272AX (FM) licensed to Keene, New Hampshire, and (xxv) any other Communications
Systems acquired by any Principal Company after the Effective Date.
"STOCK PLEDGE AGREEMENTS" - collectively, (i) the Borrower Stock Pledge
Agreement, (ii) the Saga Broadcast Stock Pledge Agreement, (iii) the Saga of
Iowa Stock Pledge Agreement, and (iv) the Lakefront Stock Pledge Agreement.
"SUBORDINATED DEBT" - collectively, (i) Permitted Subordinated Seller Debt
and (ii) any other unsecured Indebtedness for Borrowed Money of the Borrower the
principal amount of, the interest rate on and all other terms (including
covenants, events of default, remedies and subordination provisions) of which
have been approved in writing by the Required Lenders.
"SUBORDINATED DEBT DOCUMENTS" - all agreements, instruments or other
documents evidencing or relating to any Subordinated Debt.
"SUBSIDIARY" - with respect to any Principal Company, any corporation,
partnership, limited liability company, or joint venture whether now existing or
hereafter organized or acquired: (i) in the case of a corporation, of which a
majority of the securities having ordinary voting power for the election of
directors (other than securities having such power only by reason of the
happening of a contingency) are at the time owned by such Principal Company
and/or one or more Subsidiaries of such Principal Company, or (ii) in the case
of a partnership, limited liability company, or joint venture in which such
Principal Company is a general partner, member, or joint venturer, or of which a
majority of the partnership or other ownership interests are at the time owned
by such Principal Company and/or one or more of its Subsidiaries. Unless the
context otherwise requires, references in this Agreement to "Subsidiary" or
"Subsidiaries" shall be deemed to be references to a Subsidiary or Subsidiaries
of the Borrower.
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"TAXES" - any federal, state or local taxes or tax liabilities.
"TERM LOAN(S)" - as defined in Subsection 2.1(c).
"TERM LOAN COMMITMENT" - with respect to a Lender, the commitment of such
Lender to make Term Loans to the Borrower in the amount set forth on SCHEDULE 1
hereto, as the same may be reduced from time to time or terminated in accordance
with the terms hereof.
"TERM LOAN COMMITMENT PERCENTAGE" - with respect to each Lender with a
Term Loan Commitment, the percentage of such Lender's Term Loan Commitment to
the Total Term Loan Commitment or, after the termination of the Total Term Loan
Commitment, the percentage of such Lender's outstanding Term Loans to the
aggregate outstanding Term Loans.
"TERM LOAN NOTES - as defined in Subsection 2.4(b).
"TERM LOAN PAYMENT DATE" - as defined in Subsection 2.5(b).
"TIDEWATER" - Tidewater Communications, Inc., a Delaware corporation.
"TOTAL ACQUISITION LOAN COMMITMENT" - the sum of the Acquisition Loan
Commitments of the Lenders, as in effect from time to time. The initial Total
Acquisition Loan Commitment as of the Effective Date is $60,000,000.
"TOTAL FUNDED DEBT LEVERAGE RATIO" - as defined in Section 10.1.
"TOTAL REVOLVING CREDIT COMMITMENT" - the sum of the Revolving Credit
Commitments of the Lenders, as in effect from time to time. The initial Total
Revolving Credit Commitment as of Effective Date is $20,000,000.
"TOTAL TERM LOAN COMMITMENT" - the sum of the Term Loan Commitments of the
Lenders, as in effect from time to time. The initial Total Term Loan Commitment
as of the Effective Date in $70,000,000.
"TRADEMARK" - collectively, all of the following, to the extent that any
Principal Company now or hereafter has any right, title or interest herein: (i)
all trademarks, service marks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, trade dress, logos,
other source or business identifiers, designs and general intangibles or like
nature, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all registration and recording applications filed in
connection therewith, including registrations and registration applications in
the United States Patent and Trademark Office, or any state of the United
States, or in any country, as well as all extensions or renewals thereof, and
(ii) all goodwill associated therewith or symbolized thereby, and (iii) all
other assets, rights and interests that uniquely reflect or embody such
goodwill.
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"TRADEMARK SECURITY AGREEMENTS" - collectively, the Trademark Collateral
Assignment and Security Agreements from time to time entered into by and between
the Collateral Trustee and one or more of the Principal Companies with respect
to Material Federal Trademarks.
"TRANCHE" - the respective facilities and commitments utilized in making
Loans hereunder, i.e., Term Loans, Revolving Credit Loans, Acquisition Loans,
and each Series of Incremental Facility Loans, respectively, and the Commitments
corresponding to each such Tranche of Loans.
"TRANSACTION" - the loans and other transactions contemplated by the Loan
Documents to occur on or about the Effective Date.
"TRANSACTION DOCUMENTS" - (i) this Agreement, (ii) the Notes, (iii) the
Security Documents, and (iv) any other documents executed or delivered in
connection with the Transaction.
"TRANSFER EFFECTIVE DATE" - as defined in Section 13.11(b).
"TRANSFEREE" - as defined in Section 13.11(f).
"TYPE" - with respect to any Loan or portion thereof, such Loan's
designation as a Base Rate Loan or Eurodollar Loan.
"UNRESTRICTED SUBSIDIARY" - any Subsidiary that (i) shall have been
designated as an "Unrestricted Subsidiary" in accordance with the provisions of
SECTION 1.3 and (ii) any Subsidiary of an Unrestricted Subsidiary.
"VOTING STOCK" - Capital Stock the holders of which are at the time
entitled, as such holders, to vote for the election of a majority of the
directors (or persons performing similar functions) of the corporation,
association, trust or other business entity involved, whether or not the right
so to vote exists by reason of the happening of a contingency.
"YEAR 2000 PROBLEM" - the risk that computer applications used by the
Borrower and its Subsidiaries may be unable to recognize and properly perform
date-sensitive functions involving certain dates prior to, and any date after,
December 31, 1999.
Section 1.2. GENERAL PROVISIONS PERTAINING TO DEFINITIONS. All terms of an
accounting character not specifically defined herein shall have the meanings
assigned thereto by GAAP. The definitions in this Article I shall apply equally
to both 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". All references herein to
Sections, Subsections, paragraphs, clauses and Exhibits shall be deemed
references to Sections,
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35
Subsections, paragraphs on clauses of, and Exhibits to, this Agreement unless
the context shall otherwise require. Each reference herein to a particular
Person shall include a reference to such Person's successors and permitted
assigns. References to any agreement, instrument or document defined in this
Article I refer to such agreement, instrument or document as originally
executed, or if subsequently varied, replaced or supplemented from time to time,
as so varied, supplemented or replaced and in effect at the relevant time of
reference thereto.
Section 1.3. DESIGNATION OF UNRESTRICTED SUBSIDIARIES; CERTAIN OBLIGATIONS
RESPECTING RESTRICTED SUBSIDIARIES.
(a) DESIGNATION OF UNRESTRICTED SUBSIDIARIES. The Borrower may at any time
designate any of its Subsidiaries formed or acquired after the date hereof an
Unrestricted Subsidiary for purposes of this Agreement, by delivering to the
Agent a certificate of the Chief Financial Officer (and the Agent shall promptly
forward a copy of such certificate to each Lender) attaching a copy of a
resolution of the Borrower's board of directors setting forth such designation
and stating that the conditions set forth in this SECTION 1.3 have been
satisfied with respect to such designation, PROVIDED that no such designation
shall be effective unless at the time of such designation and after giving
effect thereto (i) no Default or Event of Default shall have occurred and be
continuing, (ii) no Subsidiary of an Unrestricted Subsidiary is a Restricted
Subsidiary, and (iii) the Borrower would be in compliance with the restrictions
on Investments in Unrestricted Subsidiaries set forth in SUBSECTION 9.4(i).
(b) REVOCATION OF DESIGNATION. The Borrower may revoke any designation of
a Subsidiary as an Unrestricted Subsidiary by delivering to the Agent a
certificate of the Chief Financial Officer (and the Agent shall promptly forward
a copy of such certificate to each Lender) attaching a copy of a resolution of
the Borrower's board of directors setting forth such revocation and stating that
the conditions set forth in this Section 1.3 have been satisfied with respect to
such revocation, Provided that no such revocation shall be effective unless (i)
at the time of such revocation and after giving effect thereto, no Default or
Event of Default shall have occurred and be continuing; (ii) all Liens,
Indebtedness and Investments of such Unrestricted Subsidiary outstanding
immediately following such revocation would, if incurred at such time, have been
permitted to be incurred under this Agreement and (iii) the Borrower shall have
demonstrated to the reasonable satisfaction of the Agent that (based on, among
other things operating and financial projections and PRO FORMA financial
statements delivered to the Agent and certified by the Chief Financial Officer),
immediately after giving effect to such revocation, all covenants (including all
covenants contained in ARTICLE X hereof) contained herein (A) would have been
satisfied on a pro forma basis as at the end of and for the Most Recent
Reference Period had such Subsidiary been a Restricted Subsidiary at all times
during such period, and (B) will be satisfied and PRO FORMA basis through the
period ending two years after the date of such designation.
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36
(c) CERTAIN RESTRICTIONS REGARDING PRINCIPAL COMPANIES. No Principal
Company shall at any time (i) provide credit support for, subject any of its
Assets (other than the Capital Stock of such Unrestricted Subsidiary owned by
such Principal Company) to the satisfaction of, or guarantee any Indebtedness of
any Unrestricted Subsidiary (including any undertaking, agreement or instrument
evidencing such Indebtedness), (ii) be directly or indirectly liable for any
Indebtedness or other obligations of any Unrestricted Subsidiary or (iii) be
directly or indirectly liable for any Indebtedness which provides that the
holder thereof may (upon notice, lapse of time or both) declare a default
thereon or cause the payment thereof to be accelerated or payable prior to its
final scheduled maturity upon the occurrence of a default with respect to any
Indebtedness of any Unrestricted Subsidiary.
(d) The Borrower hereby designates Saga of Iceland as an Unrestricted
Subsidiary as of the Effective Date. The Borrower represents and warrants to the
Agent and the Lenders that the requirements of this Section 1.3 with respect to
such designation have been satisfied.
ARTICLE II
COMMITMENTS; LOANS; COLLATERAL
Section 2.1. LOANS.
(a) REVOLVING CREDIT LOANS. Subject to the terms and conditions set forth
in this Agreement, each Lender with a Revolving Loan Commitment severally agrees
to make revolving credit loans (individually, a "REVOLVING CREDIT LOAN" and,
collectively, the "REVOLVING CREDIT LOANS") to the Borrower from time to time
from and after the Effective Date until the Maturity Date in an aggregate
principal amount at any time outstanding (after giving effect to all requests
therefor) up to, but not exceeding, the Revolving Credit Commitment of such
Lender at such time, MINUS such Lender's Letter of Credit Exposure at such time.
Subject to the terms and conditions of this Agreement, from time to time from
and after the Effective Date until the Maturity Date, the Borrower may borrow,
repay (provided that repayment of Eurodollar Loans shall be subject to the
provisions of Section 2.25) and reborrow Revolving Credit Loans.
Proceeds of Revolving Credit Loans shall be available for any use
permitted by Subsection 2.9(a), provided that, in the event that the Borrower
shall prepay Revolving Credit Loans in accordance with Subsection 2.5(f)(ii)(x)
with Net Proceeds, then an amount of Revolving Credit Commitments equal to the
amount of such prepayment (a "RESERVED COMMITMENT AMOUNT") shall be reserved and
shall not be available for any Credit Extension hereunder, except and to the
extent that the proceeds of such Credit Extension are used to (i) finance a
Permitted Acquisition in accordance with Subsection 2.5(f)(ii)(y) or (ii) prepay
Loans in accordance with Subsection 2.5(f)(ii)(y). The Borrower shall
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37
notify the Agent in writing, at the time of any request for a Revolving Credit
Loan that would utilize any Reserved Commitment Amount, of (A) the amount of any
Reserved Commitment Amount to be so utilized, (B) the amount of the remaining
Reserved Commitment Amounts after giving effect to such Revolving Credit Loan,
(C) the Permitted Acquisition to be financed with proceeds of such Revolving
Credit Loan, or the prepayment of Loans to be made pursuant to Subsection
2.5(f)(ii)(y) with proceeds of such Revolving Credit Loan.
(b) ACQUISITION LOANS. Subject to the terms and conditions set forth in
this Agreement, each Lender with an Acquisition Loan Commitment severally agrees
to make acquisition loans (individually, an "ACQUISITION LOAN" and,
collectively, the "ACQUISITION LOANS") to the Borrower from time to time during
the Acquisition Loan Commitment Period, on the closing date of each Permitted
Acquisition, in an aggregate principal amount at any time outstanding (after
giving effect to all requests therefor) up to, but not exceeding, the
Acquisition Loan Commitment of such Lender at such time. The Borrower shall not
be entitled to reborrow all of any part of the principal of Acquisition Loans
which shall be paid or prepaid at any time.
(c) TERM LOANS. On the Effective Date, (i) all Existing Loans shall be
converted into term loans hereunder and (ii) additional term loans equal to the
balance of the aggregate Term Loan Commitments shall be made to the Borrower
such that, after such conversion and funding of additional term loans, each
Lender with a Term Loan Commitment shall for all purposes of the Loan Documents
be deemed to have made a term loan to the Borrower on the Effective Date in a
principal amount equal to such Lender's Term Loan Commitment Percentage of
$70,000,000 (each of such term loans being, individually, a "TERM LOAN" and,
collectively, the "TERM LOANS"). The Borrower shall not be entitled to reborrow
all or any part of the principal of any Term Loans which shall be paid or
prepaid at any time.
(d) INCREMENTAL FACILITY LOANS. In addition to borrowings of Term Loans,
Revolving Credit Loans and Acquisition Loans, at any time during the Incremental
Facility Commitment Period, the Borrower may from time to time request that the
Lenders offer to enter into commitments to make additional term loans to the
Borrower hereunder, which commitments shall, with respect to any Series (as
defined below) of any Incremental Term Loans, not be less than $10,000,000 nor
greater than $50,000,000 in the aggregate. Subject to the terms and conditions
hereof, in the event that one or more of the Lenders offer, in their sole
discretion, to enter into such commitments, and the Agent, such Lenders and the
Borrower agree as to the amount of such commitments that shall be allocated to
the respective Lenders making such offers and the fees (if any) to be payable by
the Borrower in connection therewith and the other terms of such Incremental
Facility Loans, then such Lenders shall become obligated to make Incremental
Facility Loans under this Agreement in an amount equal to the amount of their
respective Incremental Facility Commitments. The Incremental Facility Loans to
be made pursuant to any such agreement between the Borrower and one or more
Lenders in response to
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38
any such request by the Company shall be deemed to be a separate "SERIES" of
Incremental Facility Loans for all purposes of this Agreement. No Lender shall
be obligated to make any Incremental Facility Loans of any Series and no
Incremental Facility Loans of any Series shall be permitted to be made, UNLESS:
(i) the terms and conditions of such Series of Incremental
Facility Loans shall have been approved by the Required Lenders;
(ii) no Default or Event of Default is continuing immediately
prior to the making of such Incremental Facility Loan of such Series, and
no Default or Event of Default would result therefrom; and
(ii) the Borrower shall have demonstrated to the reasonable
satisfaction of the Agent (based on, among other things, operating and
financial projections and pro forma financial statements delivered to the
Agent and certified by the Chief Financial Officer) that, immediately
after giving effect to the making of such Incremental Facility Loans of
such Series, all covenants (including all covenants contained in ARTICLE X
hereof) contained herein (A) would have been satisfied on a pro forma
basis as at the end of and for the Most Recent Reference Period, and (B)
will be satisfied on a pro forma basis through the period ending two years
after the date such Incremental Facility Loans of such Series are made.
The aggregate principal amount of all Incremental Facility Commitments and
Incremental Facility Loans shall not exceed $50,000,000.
Section 2.2. NOTICES RELATING TO LOANS; REQUESTS FOR EURODOLLAR Loans.
(a) NOTICES RELATING TO LOANS. The Borrower shall give the Agent written
or telephonic notice of each termination or reduction of the Revolving Credit
Commitments, the Acquisition Loan Commitments or the Incremental Facility
Commitments, each borrowing and prepayment of a Loan, each continuation or
conversion of a Loan (other than any conversion of Eurodollar Loans to Base Rate
Loans upon the expiration of the Interest Period for such Eurodollar Loans) and
the duration of each Interest Period applicable to each Eurodollar Loan (in each
case, a "BORROWING NOTICE", which shall be in form and substance satisfactory to
the Agent). Each such notice shall be irrevocable and shall be effective only if
received by the Agent not later than 11 a.m., Boston time, on the date which is:
(i) in the case of each notice of termination or reduction and
each notice of borrowing or prepayment of, or conversion into, Base Rate
Loans, one (1) Business Day prior to the date of the related termination,
reduction, borrowing, prepayment or conversion; and
(ii) in the case of each notice of borrowing or prepayment of,
continuation of or conversion into, Eurodollar Loans, or the duration of
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an Interest Period for Eurodollar Loans, three (3) Eurodollar Business
Days prior to the date of the related borrowing, prepayment, continuation
or conversion.
Each such notice of termination or reduction shall specify the amount thereof.
Each such notice of borrowing, conversion, continuation or prepayment shall
specify the amount (subject to Section 2.1) and type of Loans to be borrowed,
converted, continued or prepaid (and, in the case of a conversion, the type of
Loans to result from such conversion), the date of borrowing, continuation,
conversion or prepayment (which shall be: (x) a Business Day in the case of each
borrowing or prepayment of Base Rate Loans, and (y) a Eurodollar Business Day in
the case of each borrowing or prepayment of Eurodollar Loans and each conversion
of or into a Eurodollar Loan). Each such notice of the duration of an Interest
Period shall specify the Loans to which such Interest Period is to relate. The
Agent shall notify the Lenders of the content of each such Borrowing Notice
promptly after its receipt thereof. Any telephonic notice given under this
SECTION 2.2 shall be promptly (and in any event, within one (1) Business Day)
confirmed in writing delivered to the Agent, provided that the Lenders and the
Agent shall be fully entitled to rely on any telephonic notice believed by the
Agent to have been given by an authorized person on behalf of the Borrower.
(b) REQUESTS FOR EURODOLLAR LOANS. The Borrower may request a Loan in the
form of a Eurodollar Loan only if compliance with Section 2.5 (with the payments
provided for therein being applied in accordance with Subsection 2.5(h)) would
not result in any portion of the principal amount of such Eurodollar Loan being
paid prior to the last day of the Interest Period applicable thereto. No Lender
shall have more than seven (7) Eurodollar Loans outstanding at any one time.
Section 2.3. DISBURSEMENT OF LOAN PROCEEDS. Not later than 1:00 p.m.,
Boston time, on the date specified for each borrowing hereunder, each Lender
shall transfer to the Agent, by wire transfer or otherwise, but in any event in
immediately available funds, the amount of the Loan to be made by it on such
date, and the Agent, upon its receipt thereof, shall disburse such sum to the
Borrower by depositing the amount thereof in an account of the Borrower
designated by the Borrower maintained with the Agent
Section 2.4. NOTES.
(a) REVOLVING CREDIT NOTES. The Revolving Credit Loans made by any Lender
shall be evidenced by a single promissory note of the Borrower substantially in
the form of EXHIBIT A-1 annexed hereto (each, a "REVOLVING CREDIT NOTE" and,
collectively, the "REVOLVING CREDIT NOTES"), with appropriate insertions. Each
Revolving Credit Note shall be payable to the order of such Lender in a
principal amount equal to such Lender's Revolving Credit Commitment as of the
Effective Date, and shall otherwise be duly completed. The Revolving Credit
Loans shall be payable as provided in Section 2.5.
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(b) TERM LOAN NOTES. The Term Loans made by any Lender shall be evidenced
by a single promissory note of the Borrower substantially in the form of EXHIBIT
A-2 annexed hereto (each, a "TERM LOAN NOTE" and, collectively, the "TERM LOAN
NOTES"), with appropriate insertions. Each Term Loan Note shall be payable to
the order of such Lender in a principal amount equal to such Lender's Term Loan
Commitment as of the Effective Date, and shall otherwise be duly completed. The
Term Loan Notes shall be payable as provided in Section 2.5.
(c) ACQUISITION LOAN NOTES. The Acquisition Loans made by any Lender shall
be evidenced by a single promissory note of the Borrower substantially in the
form of EXHIBIT A-3 annexed hereto (each, an "ACQUISITION NOTE" and,
collectively, the "ACQUISITION NOTES"), with appropriate insertions. Each
Acquisition Note shall be dated the Effective Date, shall be payable to the
order of such Lender in a principal amount equal to such Lender's Acquisition
Loan Commitment as of the Effective Date, and shall otherwise be duly completed.
The Acquisition Notes shall be payable as provided in Section 2.5.
(d) INCREMENTAL FACILITY LOAN NOTES. The Incremental Facility Loans of
each Series made by any Lender shall be evidenced by a single promissory note of
the Borrower substantially in the form of EXHIBIT A-4 annexed hereto (each, an
"INCREMENTAL FACILITY LOAN NOTE and, collectively, the INCREMENTAL FACILITY LOAN
NOTES"). Each Incremental Facility Loan Note of each Series shall be dated on or
prior to the date the related Incremental Facility Loan is made, shall be
payable to the order of such Lender in a principal amount equal to such Lender's
Incremental Facility Loan Commitment for such Series, and shall otherwise be
duly completed. The Incremental Facility Loan Notes shall be payable as provided
in Section 2.5.
(e) NOTATIONS ON NOTES. Each Lender may enter on a schedule attached to
each of its Notes a notation with respect to each Loan evidenced thereby of: (A)
the date and principal amount thereof, (B) each payment and prepayment of
principal thereof, (C) whether such Loan is a Base Rate Loan or a Eurodollar
Loan, and (D) the Interest Period for such Loan, if applicable. The failure of
any Lender to make a notation on the schedule to any of its Notes as aforesaid
shall not limit or otherwise affect the obligation of the Borrower to repay the
Loans in accordance with their respective terms as set forth herein.
Section 2.5. MANDATORY PRINCIPAL PAYMENTS.
(a) REPAYMENT OF REVOLVING CREDIT LOANS AT MATURITY DATE. All Revolving
Credit Loans shall mature on the Maturity Date. All principal of, interest on
and other amounts payable in respect of Revolving Credit Loans will, if not
sooner paid, be absolutely due and payable on the Maturity Date.
(b) SCHEDULED REPAYMENTS OF TERM LOANS. The Borrower shall pay to the
Agent, for the account of the Lenders with Term Loans, principal of the
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Term Loans in consecutive quarterly installments payable on the last day of each
March, June, September and December, commencing on March 31, 2001, and on the
Maturity Date (each such date a "TERM LOAN PAYMENT DATE"). The aggregate
principal amount of the Term Loans due each Term Loan Payment Date shall be the
amount obtained by (i) multiplying (A) $70,000,000 by (B) the percentage set
forth below opposite the period during which such Term Loan Payment Date falls
and (ii) dividing the product of CLAUSE (I) above by the number of Term Loan
Payment Dates in such period.
----------------------------------------------
AMORTIZATION
PERIOD PERCENTAGE
----------------------------------------------
Effective Date - 12/31/99 0.00%
----------------------------------------------
1/1/00 - 12/31/00 0.00%
----------------------------------------------
1/1/01 - 12/31/01 10.00%
----------------------------------------------
1/1/02 - 12/31/02 15.00%
----------------------------------------------
1/1/03 - 12/31/03 17.50%
----------------------------------------------
1/1/04 - 12/31/04 20.00%
----------------------------------------------
1/1/05 - 12/31/05 22.50%
----------------------------------------------
1/1/06 - 6/30/06 15.00%
----------------------------------------------
TOTAL 100.00%
----------------------------------------------
The Term Loans shall in any event mature on the Maturity Date. All principal of,
interest on and other amounts payable in respect of the Term Loans will, if not
sooner paid, become and be absolutely due and payable on the Maturity Date.
(c) SCHEDULED REPAYMENTS OF ACQUISITION LOANS. The Borrower shall pay to
the Agent, for the account of the Lenders with Acquisition Loans, the aggregate
principal amount of the Acquisition Loans outstanding on the Conversion Date in
consecutive quarterly installments payable on the last day of each March, June,
September and December, commencing on March 31, 2001, and on the Maturity Date
(each such date an "ACQUISITION LOAN PAYMENT Date"). The aggregate principal
amount of the Acquisition Loans due each Acquisition Loan Payment Date shall be
the amount obtained by (i) multiplying (A) the aggregate principal amount of the
Acquisition Loans outstanding on the Conversion Date by (B) the percentage set
forth below opposite the period during which such Acquisition Loan Payment Date
falls and (ii) dividing the product of CLAUSE (I) above by the number of
Acquisition Loan Payment Dates in such period.
----------------------------------------------
AMORTIZATION
PERIOD PERCENTAGE
----------------------------------------------
Effective Date - 12/31/99 0.00%
----------------------------------------------
1/1/00 - 12/31/00 0.00%
----------------------------------------------
1/1/01 - 12/31/01 10.00%
----------------------------------------------
1/1/02 - 12/31/02 15.00%
----------------------------------------------
1/1/03 - 12/31/03 17.50%
----------------------------------------------
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----------------------------------------------
1/1/04 - 12/31/04 20.00%
----------------------------------------------
1/1/05 - 12/31/05 22.50%
----------------------------------------------
1/1/06 - 6/30/06 15.00%
----------------------------------------------
TOTAL 100.00%
----------------------------------------------
All Acquisition Loans shall in any event mature on the Maturity Date. All
principal of, interest on and other amounts payable in respect of the
Acquisition Loans will, if not sooner paid, become and be absolutely due and
payable on the Maturity Date.
(d) SCHEDULED REPAYMENTS OF INCREMENTAL FACILITY LOANS. The Borrower shall
pay to the Agent, for the account of the Lenders with Incremental Facility
Loans, the aggregate principal amount of the Incremental Facility Loans
outstanding on the Conversion Date in consecutive quarterly installments payable
on the last day of each March, June, September and December, commencing on March
31, 2001, and on the Maturity Date (each such date an "INCREMENTAL FACILITY LOAN
PAYMENT DATE"). The aggregate principal amount of the Incremental Facility Loans
due each Incremental Facility Loan Payment Date shall be the amount obtained by
(i) multiplying (A) the aggregate principal amount of the Incremental Facility
Loans outstanding on the Conversion Date by (B) the percentage set forth below
opposite the period during which such Incremental Facility Loan Payment Date
falls and (ii) dividing the product of clause (i) above by the number of
Incremental Facility Loan Payment Dates in such period.
----------------------------------------------
AMORTIZATION
YEAR PERCENTAGE
----------------------------------------------
Effective Date - 12/31/99 0.00%
----------------------------------------------
1/1/00 - 12/31/00 0.00%
----------------------------------------------
1/1/01 - 12/31/01 10.00%
----------------------------------------------
1/1/02 - 12/31/02 15.00%
----------------------------------------------
1/1/03 - 12/31/03 17.50%
----------------------------------------------
1/1/04 - 12/31/04 20.00%
----------------------------------------------
1/1/05 - 12/31/05 22.50%
----------------------------------------------
1/1/06 - 6/30/06 15.00%
----------------------------------------------
TOTAL 100.00%
----------------------------------------------
All Incremental Facility Loans shall in any event mature on the Maturity Date.
All principal of, interest on and other amounts payable in respect of the
Incremental Facility Loans will, if not sooner paid, become and be absolutely
due and payable on the Maturity Date.
(e) MANDATORY PAYMENTS FROM EXCESS CASH FLOW. On March 30 of each year,
commencing March 30, 2001, the Borrower shall prepay Loans in an aggregate
principal amount equal to (i) 40% of Excess Cash Flow for the fiscal year of the
Borrower most recently ended if the Total Funded Debt Leverage Ratio of the
Borrower and its Restricted Subsidiaries at the end of
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such fiscal year was equal to or greater than 4.00:1.00, and (ii) 0% of Excess
Cash Flow for such fiscal year if the Total Funded Debt Leverage Ratio of the
Borrower and its Restricted Subsidiaries at the end of such fiscal year was less
than 4.00:1.00 (each such payment being referred to herein as an "EXCESS CASH
FLOW PAYMENT"). Excess Cash Flow Payments shall be applied as provided in
Subsection 2.5(h).
(f) MANDATORY PAYMENTS IN CONNECTION WITH PREPAYMENT EVENTS.
(i) The Borrower shall, not later than the Business Day next
following each day any Net Proceeds are received by any Borrower
Affiliated Company, pay to the Agent the amount of such Net Proceeds (each
such payment to the Agent being referred to herein as a "NET PROCEEDS
PAYMENT" and the date of each such payment being referred to herein as a
"NET PROCEEDS PAYMENT DATE"). Each Net Proceeds Payment shall be applied
as provided in SUBSECTION 2.5(h).
(ii) Notwithstanding the foregoing, the Borrower shall not be
required to make a Net Proceeds Payment with respect to any Net Proceeds
if (A) the Borrower notifies the Agent in writing at the time such Net
Proceeds are received that it intends to use such Net Proceeds to finance
a Permitted Acquisition and (B) each of the following conditions is
satisfied:
(x) such Net Proceeds are either (i) held by the Collateral
Trustee in the Reinvestment Collateral Account pending application
of such Net Proceeds, in which event the Collateral Trustee need
not release such Net Proceeds to the Borrower except upon
presentation of evidence satisfactory to it that such Net Proceeds
are to be applied in accordance with the provisions of this
Agreement, or (ii) applied by the Borrower to the prepayment of
Revolving Credit Loans hereunder (in which event the Borrower shall
notify the Agent in writing at the time of such prepayment of
Revolving Credit Loans that such prepayment is being made from such
Net Proceeds and that, as provided in SUBSECTION 2.1(a), a portion
of the Revolving Credit Commitments equal to the amount of such
prepayment constitutes a Reserved Commitment Amount); and
(y) such Net Proceeds are in fact so used to finance a Permitted
Acquisition within nine months after the date such Net Proceeds are
received (or, if the Borrower has, prior to the expiration of such
nine month period, entered into a binding written agreement to make
a Permitted Acquisition no later than the date which is six months
after the termination of such nine month period, within fifteen
months after the date such Net Proceeds are received), it being
understood that, in the event Net Proceeds from more than one
Prepayment Event are held by
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the Collateral Trustee in the Reinvestment Collateral Account or
applied to the prepayment of Revolving Credit Loans in accordance
with CLAUSE (x) above, such Net Proceeds shall be deemed to be
released (or, as the case may be, Revolving Credit Loans utilizing
the Reserved Commitment Amount shall be deemed to be made) in the
same order in which such Prepayment Events occurred and,
accordingly, (A) any such Net Proceeds so held for more than nine
months (or, as provided above, fifteen months) shall be forthwith
used to make a Net Proceeds Payment and applied as provided in
Subsection 2.5(h)(i) and (B) any Reserved Commitment Amount that
remains so unutilized for more than nine months (or, as provided
above, fifteen months) shall be utilized through the borrowing by
the Borrower of Revolving Credit Loans, the proceeds of which shall
be applied as provided in Subsection 2.5(h)(i).
(g) MANDATORY PAYMENTS IF LOANS EXCEED RELATED MAXIMUM COMMITMENTS.
(i) Upon any reduction in the aggregate amount of the Revolving
Credit Commitments, the Borrower agrees immediately to repay principal of
Revolving Credit Loans in such amount as may be necessary so that the
Revolving Credit Outstandings do not exceed the aggregate amount of the
Revolving Credit Commitments, as so reduced.
(ii) Upon any reduction in the aggregate amount of the Acquisition
Loan Commitments, the Borrower agrees immediately to repay principal of
Acquisition Loans in such amount as may be necessary so that the
outstanding Acquisition Loans do not exceed the aggregate amount of the
Acquisition Loan Commitments, as so reduced.
(iii) Upon any reduction in the aggregate amount of the Incremental
Facility Commitments of any Series, the Borrower agrees immediately to
repay principal of Incremental Facility Loans of such Series in such
amount as may be necessary so that the outstanding Incremental Facility
Loans of such Series do not exceed the aggregate amount of the Incremental
Facility Commitments of such Series, as so reduced.
(h) APPLICATION OF PAYMENTS.
(i) All Excess Cash Flow Payments, all Net Proceeds Payments and
all proceeds of Revolving Credit Loans that utilize a Reserved Commitment
Amount and do not finance a Permitted Acquisition in accordance with
Subsection 2.5(f)(ii)(y) shall be applied by the Agent to pay principal of
the Term Loans, the Acquisition Loans and the Incremental Facility Loans
of each Series, on a pro rata basis,
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determined based on the aggregate principal amount of each such Tranche of
Loans outstanding immediately prior to such application.
(ii) Each payment of Term Loans pursuant to CLAUSE (i) of this
SUBSECTION 2.5(h) shall reduce the remaining scheduled installments of
principal of the Term Loans on a pro rata basis (based upon the remaining
principal amount of each such installment at the time of such payment).
(iii) Each payment prior to the Conversion Date of any Acquisition
Loans or Incremental Facility Loans of any Series pursuant to CLAUSE (i)
of this Subsection 2.5(h) may not be reborrowed and shall reduce the
remaining scheduled installments of principal of such Loans by operation
of the applicable provisions of Section 2.16. Each payment on or after the
Conversion Date of any Acquisition Loans or Incremental Facility Loans of
any Series pursuant to CLAUSE (i) of this Subsection 2.5(h) shall reduce
the remaining scheduled installments of principal of such Loans on a pro
rata basis (based upon the remaining principal amount of each such
installment at the time of such payment).
(iv) Except for payments and prepayments required to be made
pursuant to Subsections 2.5(a) through (g), and except for payments
required to be made pursuant to Sections 2.20, 2.21 and 2.23, all payments
and repayments made pursuant to the terms hereof shall be applied (A)
first to all (if any) Obligations (except principal, interest and Fees)
due and payable under this Agreement at such time, (B) then to payment of
all Fees due and payable at such time, (C) then to interest due and
payable at such time, (D) then to accrued interest and then to principal
of Base Rate Loans, and (E) finally, to principal of Eurodollar Loans.
Section 2.6. REDUCTION OR TERMINATION OF COMMITMENTS; VOLUNTARY PAYMENTS.
(a) VOLUNTARY REDUCTION OR TERMINATION OF COMMITMENTS. The Borrower
shall be entitled to terminate or reduce the Revolving Credit Commitments, the
Acquisition Loan Commitments and/or the Incremental Facility Commitments from
time to time subject to the terms and conditions set forth herein, provided that
(i) the Borrower must give notice of such termination or reduction to the
Lenders as provided in SECTION 2.2 and (ii) any partial reduction of any such
Commitments shall be in an integral multiple of One Million Dollars
($1,000,000). Any such termination or reduction shall be permanent and
irrevocable.
(b) VOLUNTARY PREPAYMENTS. The Borrower shall be entitled to prepay the
Revolving Credit Loans, the Term Loans, the Acquisition Loans and the
Incremental Facility Loans from time to time (in accordance with Section 2.11),
in whole or in part, without premium or penalty, PROVIDED, that (i) the Borrower
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must give notice of such payment to the Agent as provided in Section 2.2, and
(ii) Eurodollar Loans may be repaid only on the last day of an Interest Period
for such Loans. All prepayments of Term Loans pursuant to this PARAGRAPH (B),
and all prepayments of Acquisition Loans or Incremental Facility Loans after the
Conversion Date pursuant to this PARAGRAPH (b), shall reduce the then remaining
scheduled installments of such Tranche of Loans being prepaid on a PRO RATA
basis (based upon the principal amount of each such installment at the time of
such payment. Optional prepayments of Revolving Credit Loans may, subject to the
terms and conditions hereof, be reborrowed hereunder until the Revolving Credit
Commitments are terminated. Optional prepayments of Terms Loans, Acquisition
Loans or Incremental Facility Loans may not be reborrowed.
Section 27. INTEREST.
(a) BASE RATE LOANS. Each Base Rate Loan shall bear interest at the Base
Rate plus the Applicable Margin for Base Rate Loans then in effect.
(b) EURODOLLAR LOANS. Each Eurodollar Loan shall bear interest at the
Eurodollar Rate applicable to such Loan and the Interest Period therefor, plus
the Applicable Margin for Eurodollar Loans in effect on the first day of such
Interest Period.
(c) DEFAULT RATE. Notwithstanding the foregoing, during the continuance of
a Specified Default, the Borrower shall pay interest at the applicable Default
Rate on the principal of the Loans and (to the extent permitted by law) interest
and all other amounts payable hereunder or under any of the other Loan
Documents.
(d) PAYMENT OF INTEREST. Except as provided in the next sentence, accrued
interest on each Loan shall be payable: (i) in the case of each Base Rate Loan,
quarterly in arrears on the Quarterly Dates, and (ii) in the case of each
Eurodollar Loan, on the last day of the Interest Period for such Loan (and, if
such Interest Period exceeds three months' duration, quarterly, on the Quarterly
Dates), and (iii) in the case of any Loan, (A) upon any payment or prepayment
thereof or the conversion thereof into a Loan of another type (but only on the
principal so paid, prepaid or converted) and (B) on the Maturity Date, (iv) in
the case of the Revolving Credit Loans, on the date of termination of the
Revolving Credit Commitments, (v) in the case of the Acquisition Loans on the
date of termination of the Acquisition Loan Commitments, and (vi) in the case of
the Incremental Facility Loans on the date of termination of the Incremental
Facility Loan Commitments. Interest which is payable at the Default Rate shall
be payable from time to time on demand of the Agent or any Lender. Promptly
after the establishment of any interest rate provided for herein or any change
therein, the Agent will notify the Lenders and the Borrower thereof, provided
that the failure of the Agent to so notify the Borrower or the Lenders shall not
affect the obligations of the Borrower hereunder or under any of the Notes in
any respect.
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Section 2.8. FEES.
(a) REVOLVING CREDIT COMMITMENT FEES. The Borrower shall pay to the Agent,
for the accounts of the Lenders with Revolving Credit Commitments, commitment
fees ("REVOLVING CREDIT COMMITMENT FEES") in an amount equal to the product of
(i) the daily average amount of the Available Revolving Credit Commitments
during the applicable calendar quarter and (ii) the annual rate set forth in the
table below based upon the Total Funded Debt Leverage Ratio for the Reference
Period ending immediately prior to such calendar quarter. The Revolving Credit
Commitment Fees shall be payable (i) quarterly in arrears on the Quarterly
Dates, and (ii) on the date the Revolving Credit Commitments terminate.
Total Funded Debt
Leverage Ratio Annual Rate
----------------- -----------
Greater than or equal to 4.0:1.0 0.500%
Less than 4.0:1.0 0.375%
(b) ACQUISITION LOAN COMMITMENT FEES. The Borrower shall pay to the Agent,
for the accounts of the Lenders with Acquisition Loan Commitments, commitment
fees ("ACQUISITION LOAN COMMITMENT FEES") in an amount equal to the product of
(i) the daily average amount of the Available Acquisition Loan Commitments
during the applicable calendar quarter and (ii) the annual rate set forth in the
table below based upon the Total Funded Debt Leverage Ratio for the Reference
Period ending immediately prior to such calendar quarter. The Acquisition Loan
Commitment Fees shall be payable (i) quarterly in arrears on the Quarterly Dates
and (ii) on the date the Acquisition Loan Commitments terminate.
Total Funded Debt
Leverage Ratio Annual Rate
----------------- -----------
Greater than or equal to 4.0:1.0 0.500%
Less than 4.0:1.0 0.375%
(c) OTHER FEES. The Borrower shall pay to the Agent certain fees as
provided in the Fee Letter.
Section 2.9. USE OF PROCEEDS OF LOANS. The Borrower hereby covenants,
warrants and represents as follows:
(a) All proceeds of Revolving Credit Loans shall be used by the Borrower
solely (i) for working capital and general corporate purposes of the
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Principal Companies (including the making of Investments permitted by PARAGRAPHS
(a), (b), (c), (f) and (i) of SECTION 9.4), (ii) to finance Permitted
Acquisitions and (iii) to finance the repurchase of shares of Class A Common
Stock of the Borrower in accordance with the terms and conditions of PARAGRAPH
(C) of SECTION 9.5; PROVIDED, HOWEVER, that (i) any proceeds of Revolving Credit
Loans that would utilize any Reserved Commitment Amount shall be applied solely
(x) to finance a Permitted Acquisition in accordance with SUBSECTION
2.5(f)(ii)(y) or (y) as provided in Subsection 2.5(h)(i); and (ii) proceeds of
Revolving Loans shall not be used to finance any Permitted Acquisitions, UNLESS
(A) the Acquisition Loan Commitments have either been fully utilized or
terminated at the time of the Loan request, and (B) after giving effect to the
making of such Revolving Credit Loans, the aggregate amount of Revolving Loans
used to finance all Permitted Acquisitions is less than $10,000,000. The
$10,000,000 limitation in the preceding CLAUSE (ii) shall not limit the amount
of Revolving Credit Loans the proceeds of which utilize any Reserved Commitment
Amount and are used to finance a Permitted Acquisition in accordance with
Subsection 2.5(f)(ii)(y).
(b) All proceeds of Term Loans shall be used by the Borrower solely (i) to
replace obligations of the Borrower under the Existing Credit Agreement, (ii) to
pay fees, costs and expenses incurred by the Borrower and its Restricted
Subsidiaries in connection with the Transaction, (iii) to make Investments
permitted by SUBSECTION 9.4(a), and (iv) to finance Permitted Acquisitions and
to pay fees, costs and expenses incurred in connection therewith.
(c) All proceeds of Acquisition Loans shall be used by the Principal
Companies solely to finance Permitted Acquisitions and to pay fees, costs and
expenses incurred in connection therewith.
(d) All proceeds of Incremental Facility Loans shall be used by the
Principal Companies solely to finance Permitted Acquisitions and to pay fees,
costs and expenses incurred in connection therewith.
(e) No part of the proceeds of any Loan will be used (directly or
indirectly) (i) to purchase or carry, or to extend credit to any Person or
Persons for the purpose of purchasing or carrying (A) any margin security or
margin stock (within the meaning of Regulations U and X of the Board of
Governors of the Federal Reserve System) or (B) any other stock of any class in
the capital of the Borrower, or (ii) otherwise in any manner which would be in
violation of such Regulations U or X.
Section 2.10. COMPUTATIONS. Interest on Eurodollar Loans and each Fee
(other than the Agency Fee) shall be computed on the basis of a year of 360 days
and actual days elapsed (including the first day but excluding the last) during
the period for which payable. Interest on Base Rate Loans shall be computed on
the basis of a year of 365 or 366 days (as the case may be), and actual days
elapsed (including the first day but excluding the last) during the period for
which payable.
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Section 2.11. MINIMUM AMOUNTS OF BORROWINGS, CONVERSIONS AND PREPAYMENTS.
Except for borrowings of Revolving Credit Loans, Acquisition Loans or
Incremental Facility Loans which exhaust the full remaining amount of the
Revolving Credit Commitments, the Acquisition Loan Commitments or the
Incremental Facility Commitments of any Series, respectively, conversions or
prepayments of all Loans of a particular type, or conversions made pursuant to
Sections 2.19, 2.20(c) or 2.22, each borrowing, each conversion of Loans of one
type into Loans of another type and each prepayment of principal of Loans
hereunder shall (i) in the case of Base Rate Loans, be in an integral multiple
of $100,000, and (ii) in the case of Eurodollar Loans, be in a minimum amount of
$1,000,000 and in an integral multiple of $100,000 if in excess of $1,000,000
(prepayments of different types of Loans at the same time to be deemed separate
borrowings, conversions or prepayments for purposes of the foregoing, one for
each type).
Section 2.12. TIME AND METHOD OF PAYMENTS. All payments of principal,
interest, Fees and other amounts (including indemnities) payable by any
Principal Company hereunder shall be made in Dollars, in immediately available
funds, without deduction, set-off or counterclaim, to the Agent at its Principal
Office on the date on which such payment shall become due; PROVIDED, HOWEVER,
that any payment not received by the Agent by 1:00 p.m., Boston time, on the
date made shall be deemed received on the next Business Day; PROVIDED, HOWEVER,
that no Default shall be deemed to have occurred under Section 11.1 if payment
is received after l:00 p.m., Boston time, but prior to 5:00 p.m., Boston time,
on the date on which such payment shall become due. The Agent or any Lender for
whose account any such payment is to be made may, but shall not be obligated to,
debit the amount of any such payment which is not made by such time to any
ordinary deposit account of the Borrower with the Agent or such Lender, as the
case may be. Each payment received by the Agent hereunder for the account of a
Lender shall be paid promptly to such Lender, in like funds, for the account of
such Lender's Applicable Lending Office for the Loan in respect of which such
payment is made. If any payment or principal or interest becomes due on a day
other than a Business Day, such payment may be made on the next succeeding
Business Day, and such extension shall be included in computing interest in
connection with such payment. All payments hereunder and under the Notes shall
be made without set-off or counterclaim and in such amounts as may be necessary
in order that all such payments shall not be less than the amounts otherwise
specified to be paid under this Agreement and the Notes after withholding for or
on account of (i) any present or future taxes, levies, imposts, duties or other
similar charges of whatever nature imposed by any government or any political
subdivision or taxing authority thereof, other than any tax (except those
referred to in CLAUSE (ii) below) on or measured by the net income of the Lender
to which any such payment is due pursuant to applicable federal, state and local
income tax laws, and (ii) deduction of amounts equal to the taxes on or measured
by the net income of such Lender payable by such Lender with respect to the
amount by which the payments required to be made
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under this sentence exceed the amounts otherwise specified to be paid in this
Agreement and the Notes. Upon payment in full of any Note, and in the case of
any Lender holding any Revolving Credit Note, the termination of the Revolving
Credit Commitment of such Lender, the Lender holding such Note shall xxxx the
Note "Paid" and return it to the Borrower.
Section 2.13. LENDING OFFICES. The Loans of each type made by each Lender
shall be made and maintained at such Lender's Applicable Lending Office for
Loans of such type.
Section 2.14. SEVERAL OBLIGATIONS. The failure of any Lender to make any
Loan to be made by it on the date specified therefor shall not relieve the other
Lenders of their respective obligations to make their Loans on such date, but no
Lender shall be responsible for the failure of any other Lender to make Loans to
be made by such other Lender.
Section 2.15. SECURITY.
(a) COLLATERAL. In order to secure the payment and performance of all
the Obligations, it is the intention and understanding of each of the parties
hereto that the following Collateral has been or will be made available to the
Collateral Trustee on or prior to the Effective Date:
(i) the Borrower has granted and shall grant to the Collateral
Trustee, pursuant to the Borrower Stock Pledge Agreement, a first-priority
perfected security interest in and to all of the Capital Stock of each
direct Restricted Subsidiary of the Borrower;
(ii) Saga Broadcast has granted and shall grant to the Collateral
Trustee, pursuant to the Saga Broadcast Stock Pledge Agreement, a
first-priority perfected security interest in and to all of the Capital
Stock of each direct Restricted Subsidiary of Saga Broadcast;
(iii) Saga of Iowa has granted and shall grant to the Collateral
Trustee, pursuant to the Saga of Iowa Stock Pledge Agreement, a
first-priority perfected security interest in and to all of the Capital
Stock of each direct Restricted Subsidiary of Saga of Iowa;
(iv) the Borrower has granted and shall grant to the Collateral
Trustee, pursuant to the Borrower Security Agreement, a first-priority
security interest (subject to Liens permitted by Section 9.2) in and to
all of its Assets of every description (other than those Assets set forth
on SCHEDULE 4.4(a));
(v) the Restricted Subsidiaries have granted and shall grant to
the Collateral Trustee, pursuant to the terms of the Borrower Subsidiary
Security Agreement (to the maximum extent permitted by applicable law), a
first priority security interest (subject to Liens permitted by
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Section 9.2) in and to all of their Assets of every description (other
than those Assets set forth on SCHEDULE 4.4(a)); and
(vi) the due payment and performance in full of the Obligations
shall be guaranteed to the Lenders by each of the Guarantors, upon the
terms and subject to the conditions contained in ARTICLE VI hereof.
(b) ADDITIONAL COLLATERAL. It is also the intention and understanding of
the parties hereto that the Collateral Trustee shall be granted additional
Collateral from time to time pursuant to Sections 8.12 and 8.15 to secure the
payment and performance of all the Obligations. The Principal Companies shall
execute and deliver such other agreements, instruments and documents as the
Agent or the Collateral Trustee (with the consent of the Agent) reasonably
requests in order to effect the purposes of the Security Documents and the other
Loan Documents.
(c) DESCRIPTION OF COLLATERAL. Reference is hereby made to the Loan
Documents for a complete statement of the terms and provisions relating to, and
for a complete description of, the Collateral.
Section 2.16. PRO RATA TREATMENT AMONG LENDERS. Except as otherwise
provided herein: (i) each borrowing of Revolving Credit Loans, Term Loans,
Acquisition Loans or Incremental Facility Loans of any Series will be made from
the Lenders PRO RATA according to their respective Commitments with respect to
such Tranche of Loans, as applicable; (ii) each payment of each Revolving Credit
Commitment Fee, Acquisition Loan Commitment Fee, and Letter of Credit Fee (other
than the Issuing Bank Fee) shall be made for the account of the Lenders PRO RATA
according to their respective applicable Commitments; (iii) each partial
reduction of the Revolving Credit Commitments, Acquisition Loan Commitments or
Incremental Facility Commitments of any Series shall be applied to the
applicable Tranche of Commitments of each Lender PRO RATA according to each
Lender's respective Commitment with respect to such Tranche; (iv) each
conversion of Loans of a particular type under Section 2.19 (other than
conversions provided for by Section 2.23 or 2.24) will be made PRO RATA among
the Lenders holding Loans of such type according to the respective principal
amounts of such Loans held by such Lenders; (v) each payment and prepayment of
principal of or interest on Loans of a particular Tranche will be made to the
Agent for the account of the Lenders holding Loans of such Tranche PRO RATA in
accordance with the respective unpaid principal amounts of such Loans held by
such Lenders; (vi) each purchase by Revolving Credit Lenders of a participation
in each Letter of Credit issued by the Issuing Bank under ARTICLE III hereof
will be made by such Lenders in accordance with such Lender's Revolving Credit
Commitment Percentage; and (vii) Interest Periods for Loans of a particular type
shall be allocated among the Lenders holding Loans of such type PRO RATA
according to the respective principal amounts of such Loans held by such
Lenders.
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Section 2.17. NON-RECEIPT OF FUNDS BY AGENT. Unless the Agent shall have
been notified by a Lender or the Borrower (the "PAYOR") prior to the date on
which such Lender is to make payment to the Agent of the proceeds of a Loan to
be made by it hereunder or any Principal Company is to make a payment to the
Agent for the account of one or more of the Lenders, as the case may be (each
such payment being herein called a "MANDATORY PAYMENT"), which notice shall be
effective upon receipt, that the Payor does not intend to make the Mandatory
Payment to the Agent, the Agent may assume that the Mandatory Payment has been
made and may, in reliance upon such assumption (but shall not be required to),
make the amount thereof available to the intended recipient on such date and, if
the Payor has not in fact made the Mandatory Payment to the Agent, the recipient
of such payment shall, on demand, repay to the Agent the amount made available
to it together with interest thereon in respect of each day during the period
commencing on the date such amount was so made available by the Agent until the
date the Agent recovers such amount at a rate per annum equal to the Federal
Funds Rate for such day (when the recipient is a Lender) or equal to the rate of
interest applicable to such Loan (when the recipient is the Borrower).
Section 2.18. SHARING OF PAYMENTS AND SET-OFF AMONG LENDERS. The Borrower
hereby agrees that, in addition to (and without limitation of) any right of
set-off, banker's lien or counterclaim a Lender may otherwise have, each Lender
shall be entitled, at its option, to offset balances held by it at any of its
offices against any principal of or interest on any of its Loans hereunder, or
any Fee payable to it, which is not paid when due (regardless of whether such
balances held by such Lender are then due to the Borrower), in which case it
shall promptly notify the Borrower and the Agent thereof, provided that its
failure to give such notice shall not affect the validity thereof. If a Lender
shall effect payment of any principal of or interest on any of its Loans
hereunder or any Fee payable to it, through the exercise of any right of
set-off, banker's lien, counterclaim, or otherwise, or it shall promptly
purchase at par from the other Lenders participations in the corresponding
Obligations held by the other Lenders in such amounts, and make such other
adjustments from time to time as shall be equitable, to the end that all the
Lenders shall share the benefit of such payment PRO RATA in accordance with the
unpaid principal and interest on the Obligations held by each of them. To such
end all the Lenders shall make appropriate adjustments among themselves (by the
resale of participations sold or otherwise) if such payment is rescinded or must
otherwise be restored. The Borrower agrees that any Lender so purchasing a
participation in the Loans held by the other Lenders may exercise all rights of
set-off, banker's lien, counterclaim or similar rights with respect to such
participation as fully as if such Lender were a direct holder of Obligations in
the amount of such participation. Nothing contained herein shall require any
Lender to exercise any such right or shall affect the right of any Lender to
exercise and retain the benefits of exercising any such right with respect to
any other indebtedness or obligation of the Borrower.
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Section 2.19. CONVERSION OF LOANS; CONTINUATION OF LOANS.
(a) The Borrower shall have the right to convert Loans of one type of a
Tranche into Loans of another type of such Tranche from time to time, PROVIDED
THAT: (i) the Borrower shall give the Agent notice of each such conversion as
provided in Section 2.2; (ii) Eurodollar Loans may be converted only on the last
day of an Interest Period for such Loans; and (iii) no Base Rate Loan may be
converted into a Eurodollar Loan if on the proposed date of conversion a Default
or an Event of Default exists. The Agent shall notify the Lenders of the
effectiveness of such conversion, and the new interest rate to which the
converted Loans are subject, as soon as practicable after the conversion.
(b) The Borrower shall have the right to continue any Eurodollar Loan of a
Tranche as a Eurodollar Loan of the same Tranche upon the expiration of an
Interest Period with respect thereto, PROVIDED that: (i) the Borrower shall give
the Agent notice of such continuation as provided in Section 2.2; and (ii) no
Eurodollar Loan may be continued as such when any Default or Event of Default
has occurred and is continuing, but shall be automatically converted to a Base
Rate Loan on the last day of the first Interest Period relating thereto ending
during the continuance of any Default or Event of Default. In the event that the
Borrower fails to provide any such notice with respect to the continuation of
any Eurodollar Loan as such, then such Eurodollar Loan shall be automatically
converted to a Base Rate Loan on the last day of the first Interest Period
relating thereto. The Agent shall notify the Lenders promptly (A) when any such
automatic conversion contemplated by this Section 2.19 is scheduled to occur;
and (B) of the effectiveness of the continuation of any Eurodollar Loan and the
new interest rate to which such continued Eurodollar Loan is subject.
Section 2.20. ADDITIONAL COSTS; CAPITAL REQUIREMENTS.
(a) In the event that any existing or future law or regulation, guideline
or interpretation thereof, by any Governmental Authority charged with the
administration thereof, or compliance by any Lender or any Affiliate of any
Lender with any request or directive (whether or not having the force of law) of
any such Authority shall impose, modify or deem applicable or result in the
application of, any capital maintenance, capital ratio or similar requirement
against any Lender's Loans or Commitments hereunder, and the result of any such
event is to impose upon any Lender or any Affiliate of any Lender or increase
any capital requirement applicable as a result of the making or maintenance of
such Lender's Loans or its Commitments or the obligation of the Borrower
hereunder with respect to such Commitments (which imposition of capital
requirements may be determined by such Lender's reasonable allocation of the
aggregate of such capital increases or impositions), then such Lender may make
demand on the Borrower and within 30 days after demand made by such Lender (a
copy of which demand shall be delivered to the Agent), the Borrower shall
immediately pay to such Lender from time to time as
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specified by such Lender additional amounts which shall be sufficient to
compensate such Lender for such imposition of or increase in capital
requirements together with interest on each such amount from the date such
payment becomes due until payment in full thereof at the Default Rate, PROVIDED,
HOWEVER, that if such Lender does not make demand on the Borrower within 90 days
after becoming aware of such imposition or increase in capital requirements,
then such Lender may make demand only for such additional amounts which shall be
sufficient to compensate such Lender for such imposition or increase in capital
requirements for periods not preceding the day 90 days prior than the date on
which demand is made. A certificate setting forth in reasonable detail the
amount necessary to compensate such Lender as a result of an imposition of or
increase in capital requirements submitted by such Lender to the Borrower shall
be conclusive, absent manifest error, as to the amount thereof.
(b) In the event that any Regulatory Change shall: (i) change the basis of
taxation of any amounts payable to any Lender under this Agreement or the Notes
in respect of any Loans including Eurodollar Loans (other than taxes imposed on
the overall net income of such Lender); or (ii) impose or modify any reserve,
FDIC premium or assessment, special deposit or similar requirements relating to
any extensions of credit or other assets of, or any deposits with or other
liabilities of, such Lender (including any of such Loans or any deposits
referred to in the definition of "Eurodollar Base Rate" in ARTICLE I hereof); or
(iii) impose any other conditions affecting this Agreement in respect of Loans,
including Eurodollar Loans (or any of such extensions of credit, assets,
deposits or liabilities); and the result of any event referred to in CLAUSE (I),
(II) or (III) above shall be to increase such Lender's costs of making or
maintaining any Loans, including Eurodollar Loans, or its Commitments, or to
reduce any amount receivable by such Lender hereunder in respect of any of its
Eurodollar Loans, or its Commitments (such increases in costs and reductions in
amounts receivable are hereinafter referred to as "ADDITIONAL COSTS") in each
case, only to the extent that such Additional Costs are not included in the
Eurodollar Base Rate applicable to such Eurodollar Loans, then such Lender may
make demand on the Borrower and within 30 days after demand made by such Lender
(a copy of which demand shall be delivered to the Agent), the Borrower shall pay
to such Lender from time to time as specified by such Lender, additional amounts
which shall be sufficient to compensate such Lender for such increased cost or
reduction in amounts receivable by such Lender from the date of such change,
together with interest on each such amount from the date such payment becomes
due until payment in full thereof at the Default Rate, PROVIDED, HOWEVER, that
if such Lender does not make demand on the Borrower within 90 days after
becoming aware of such Regulatory Change, then such Lender may make demand only
for such additional amounts as shall be sufficient to compensate such Lender for
increased costs or reductions in amounts receivable by such Lender for periods
not preceding the day 90 days prior to such demand.
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(c) Without limiting the effect of the foregoing provisions of this
Section 2.20, in the event that, by reason of any Regulatory Change, any Lender
either: (i) incurs Additional Costs based on or measured by the excess above a
specified level of the amount of a category of deposits or other liabilities of
such Lender which includes deposits by reference to which the interest rate on
Eurodollar Loans is determined as provided in this Agreement or a category of
extensions of credit or other assets of such Lender which includes Eurodollar
Loans, or (ii) becomes subject to restrictions on the amount of such a category
of liabilities or assets which it may hold, then, if such Lender so elects by
notice to the Borrower (with a copy to the Agent), the obligation of such Lender
to make, and to convert Loans of any other type into, Loans of such type
hereunder shall be suspended until the date such Regulatory Change ceases to be
in effect (and all Loans of such type then outstanding shall be converted into
Base Rate Loans or into Eurodollar Loans of another duration, as the case may
be, in accordance with Sections 2.19 and 2.23).
(d) Determinations by any Lender for purposes of this Section 2.20 of the
effect of any Regulatory Change on its costs of making or maintaining Loans or
on amounts receivable by it in respect of Loans, and of the additional amounts
required to compensate such Lender in respect of any Additional Costs, shall be
set forth in writing in reasonable detail and shall be conclusive, absent
manifest error. Each Lender shall allocate any cost increases required by this
SECTION 2.20 among its customers in good faith and on an equitable basis.
(e)If any Lender makes demand pursuant to Paragraphs (a) or (b)
of this Section 2.20, so long as no Event of Default shall have occurred and be
continuing and the Borrower has obtained from another Lender or another bank or
financial institution acceptable to the Agent a commitment to become a Lender
for all purposes under this Agreement and to assume all obligations of the
Lender to be replaced, the Borrower may require the Lender making such demand to
assign all of its rights and obligations under this Agreement, its Note and the
other Loan Documents to such other Lender or other bank or financial institution
pursuant to the provisions of SUBSECTION 13.11(b); PROVIDED that, prior to or
concurrently with such replacement (i) the Borrower has paid to the Lender
making demand all principal, interest, fees and other amounts owed to such
Lender through such date of replacement, (ii) the Borrower has paid to the Agent
the registration and processing fee required to be paid by Section 13.11(d), and
(iii) all of the requirements for such assignment contained in SECTION 13.11(b),
including the receipt by the Agent of an executed Assignment and Acceptance
Agreement and other supporting documents, have been fulfilled.
Section 2.21. LIMITATION OF TYPES OF LOANS. Anything herein to the
contrary notwithstanding, if, on or prior to the determination of an interest
rate for any Eurodollar Loans for any Interest Period therefor, the Agent of the
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Required Lenders determine (which determination shall be conclusive absent
manifest error):
(a) by reason of any event affecting the money markets in the United
States of America or the Eurodollar interbank market, quotations of interest
rates for the relevant deposits are not being provided in the relevant amounts
or for the relevant maturities for purposes of determining the rate of interest
for such Loans under this Agreement; or
(b) the rates of interest referred to in the definition of "Eurodollar
Base Rate" in ARTICLE I hereof upon the basis of which the rate of interest on
any Eurodollar Loans for such period is determined do not accurately reflect the
cost to the Lenders of making or maintaining such Loans for such period;
then the Agent shall give the Borrower and each Lender prompt notice thereof
(and shall thereafter give the Borrower and each Lender prompt notice of the
cessation, if any, of such condition), and so long as such condition remains in
effect, the Lenders shall be under no obligation to make Loans of such type or
to convert Loans of any other type into Loans of such type and the Borrower
shall, on the last day(s) of the then current Interest Period(s) for the
outstanding Loans of the affected type either prepay such Loans in accordance
with Section 2.6 or convert such Loans into Loans of another type in accordance
with Section 2.19.
Section 2.22. ILLEGALITY. Notwithstanding any other provision in this
Agreement, in the event that it becomes unlawful for any Lender or its
Applicable Lending Office to: (i) honor its obligation to make Eurodollar Loans
hereunder, or (ii) maintain Eurodollar Loans hereunder, then such Lender shall
promptly notify the Borrower thereof (with a copy to the Agent), describing such
illegality in reasonable detail (and shall thereafter promptly notify the
Borrower and the Agent of the cessation, if any, of such illegality), and such
Lender's obligation to make Eurodollar Loans and to convert other types of Loans
into Eurodollar Loans hereunder shall, upon written notice given by such Lender
to the Borrower, be suspended until such time as such Lender may again make and
maintain Eurodollar Loans and such Lender's outstanding Eurodollar Loans shall
be converted into Base Rate Loans (as shall be designated in a notice from the
Borrower to the Agent pursuant to SECTION 2.2) in accordance with Sections 2.19
and 2.23.
Section 2.23. CERTAIN CONVERSIONS PURSUANT TO SECTIONS 2.20 AND 2.22. If
the Loans of any Lender of a particular type (Loans of such type are hereinafter
referred to as "AFFECTED LOANS" and such type is hereinafter referred to as the
"AFFECTED TYPE") are to be converted pursuant to SECTION 2.20 or 2.22, such
Lender's Affected Loans shall be converted into Base Rate Loans (the "NEW TYPE
LOANS") on the last day(s) of the then current Interest Period(s) for the
Affected Loans (or, in the case of a conversion required by Subsection 2.20(c)
or Section 2.22 on such earlier date as such Lender may specify to the Borrower
with a copy to the Agent) and, until such Lender gives notice as
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provided below that the circumstances specified in Section 2.20 or 2.22 which
gave rise to such conversion no longer exist:
(a) to the extent that such Lender's Affected Loans have been so
converted, all payments and prepayments of principal which would otherwise be
applied to such Affected Loans shall be applied instead to its New Type Loans;
(b) all Loans which would otherwise be made by such Lender as Loans of the
Affected Type shall be made instead as New Type Loans and all Loans of such
Lender which would otherwise be converted into Loans of the Affected Type shall
be converted instead into (or shall remain as) New Type Loans; and
(c) if Loans of any of the Lenders other than such Lender which are the
same type as the Affected Type are subsequently converted into Loans of another
type (which type is other than New Type Loans), then such Lender's New Type
Loans shall be automatically converted on the conversion date into Loans of such
other type to the extent necessary so that, after giving effect thereto, all
Loans held by such Lender and the Lenders whose Loans are so converted are held
PRO RATA (as to principal amounts, types and, to the extent applicable, Interest
Periods) in accordance with their respective Commitments.
Section 2.24. INDEMNIFICATION. The Borrower shall pay to the Agent for the
account of each Lender, upon the request of such Lender through the Agent, such
amount or amounts as shall compensate such Lender for any loss (including loss
of profit), cost or expense incurred by such Lender (as reasonably determined by
such Lender) as a result of:
(a) any payment or prepayment or conversion of a Eurodollar Loan held by
such Lender on a date other than the last day of an Interest Period for such
Eurodollar Loan; or
(b) any failure by the Borrower to borrow, prepay or convert a Eurodollar
Loan on the date for such borrowing, prepayment or conversion specified in the
relevant notice under Section 2.2,
such compensation to include an amount equal to: (i) any loss or expense
suffered by such Lender during the period from the date of receipt of such early
payment or prepayment or the date of such conversion or failure to borrow or
convert to the last day of such Interest Period if the rate of interest
obtainable by such Lender upon the redeployment of an amount of funds equal to
such Lender's PRO RATA share of such payment, prepayment or conversion or
failure to borrow or convert is less than the rate of interest applicable to
such Eurodollar Loan for such Interest Period, or (ii) any loss or expense
suffered by such Lender in liquidating Eurodollar deposits prior to maturity
which correspond to such Lender's PRO RATA share of such payment, prepayment,
conversion, failure to borrow or failure to convert. The determination by each
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such Lender or the amount of any such loss or expense, when set forth in a
written notice to the Borrower, containing such Lender's calculation thereof in
reasonable detail, shall be presumed correct, in the absence of manifest error.
Section 2.25. WAIVER OF CLAIMS. The Principal Companies hereby waive any
and all claims, counterclaims, defenses and similar rights with respect to the
Existing Loans which any of the Principal Companies have or may have as of the
effectiveness of this Agreement based on all information available to the
Principal Companies at such time.
Section 2.26. ASSIGNMENT AND REASSIGNMENT OF EXISTING LOANS.
(a) Pursuant to the Lender Assignment Agreements, immediately prior to the
effectiveness hereof, each Existing Lender has sold and assigned to the Agent,
and the Agent has purchased and assumed from such Existing Lender, all Loans of
such Existing Lender under (and as such term is defined in) the Existing Credit
Agreement;
(b) Upon the effectiveness of this Agreement: (i) all Revolving Credit
Loans under (and as such term is defined in) the Existing Credit Agreement shall
automatically be converted into Term Loans hereunder; (ii) all Term Loans A
under (and as such term is defined in) the Existing Credit Agreement shall
automatically be converted into Term Loans hereunder; (iii) the Agent shall and
does hereby sell and assign to each Lender with a Term Loan Commitment such
Lender's Term Loan Commitment Percentage of all Term Loans outstanding
immediately prior to such assignments and each such Lender shall and does hereby
purchase from the Agent, for cash, at par, such Lender's Term Loan Commitment
Percentage of all Term Loans outstanding immediately prior to such assignments.
(c) The principal amount of all Revolving Credit Loans and Term Loans of
each Lender, after giving effect to the assignments described in paragraph (b)
above is as set forth on SCHEDULE 1 hereto.
(d) Each of the Principal Companies acknowledges and agrees that all
Existing Loans assigned by the Agent to the Lenders pursuant to this Section
2.26 shall be entitled to all the benefits of this Agreement and the other Loan
Documents.
(e) The Agent (i) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations
made in or in connection with the Existing Credit Agreement or any of the other
documents or instruments furnished pursuant thereto or the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Existing
Credit Agreement or any other instrument or document furnished pursuant thereto,
other than that it is the legal and beneficial owner of the Assigned Interests
being assigned by it hereunder, that such interests are free and clear of any
adverse claim, and that the Agent has the requisite corporate
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power and authority and all consents necessary to execute, deliver and perform
such assignment; and (ii) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Borrower
Affiliated Company or the performance or observance by the Borrower or any other
Person of any of their obligations under the Existing Credit Agreement or any
other instrument or document furnished pursuant thereto.
(f) Each Lender purchasing Existing Loans pursuant to this SECTION 2.26
represents and warrants that it has the requisite corporate power and authority
and all consents necessary to execute, deliver and perform such purchase and
acknowledges and agrees that such purchase is without recourse to the Agent,
except to the extent that the Agent breaches its representations and warranties
made pursuant to paragraph (e) above.
ARTICLE III
LETTERS OF CREDIT
Section 3.1. LETTER OF CREDIT COMMITMENT. On the terms and subject to the
conditions contained in this Agreement, the Issuing Bank shall from time to time
from and after the effectiveness hereof until the Maturity Date issue Letters of
Credit for the account of the Borrower.
Section 3.2. ISSUANCE OF LETTERS OF CREDIT.
(a) The obligation of the Issuing Bank to issue any Letter of Credit
requested by the Borrower is subject to the following conditions (in addition to
conditions specified elsewhere in this Agreement):
(i) The Issuing Bank shall have no obligation to issue any Letter
of Credit if, after giving effect to such issuance, (A) the Revolving
Credit Outstandings would exceed the aggregate Revolving Credit
Commitments or (B) the Letter of Credit Exposure would exceed $5,000,000.
(ii) The form and terms of each Letter of Credit and any related
documentation must be reasonably acceptable to the Issuing Bank.
(iii) Each Letter of Credit by its terms must provide for payment of
drawings thereunder in Dollars and must expire on or prior to the earlier
to occur of (A) ten days prior to the Maturity Date and (B) the first
anniversary of the date of its issuance.
(iv) Each Letter of Credit must be issued in connection with a
Permitted Acquisition.
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(v) Each Letter of Credit shall contain a provision permitting the
Issuing Bank to terminate such Letter of Credit upon 30 days' prior
written notice to the beneficiary thereof and authorizing such beneficiary
to draw up to the full undrawn amount of such Letter of Credit during such
30-day period. The Issuing Bank agrees that it will not give any such
termination notice except in compliance with Section 11.4.
In determining compliance with clause (i) above, the Issuing Bank shall be
entitled to rely on information received by it from the Agent or the Borrower.
(b) Whenever the Borrower desires to have a Letter of Credit issued, the
Borrower will furnish to the Agent and the Issuing Bank a written application
therefor (each, a "LETTER OF CREDIT APPLICATION") which shall (i) be received by
the Agent and the Issuing Bank not less than three (3) Business Days and not
more than ten (10) Business Days prior to the Issue Date of such Letter of
Credit and (ii) specify (A) the Issue Date of such Letter of Credit (which must
be a Business Day), (B) the expiration date of such Letter of Credit, (C) the
name and address of the beneficiary of the Letter of Credit, (D) the amount of
such Letter of Credit, and (E) the purpose and proposed form of such Letter of
Credit. The Agent shall give each Lender prompt notice of its receipt of each
such application and the Issuing Bank shall give the Agent and each Lender
prompt notice of the issuance and amount of each Letter of Credit and the
expiration date of each Letter of Credit.
Section 3.3. PARTICIPATION BY LENDERS.
(a) By the issuance of a Letter of Credit and without any further action
on the part of the Issuing Bank or the other Lenders in respect thereof, the
Issuing Bank hereby grants to each Revolving Credit Lender, and each Revolving
Credit Lender hereby acquires from the Issuing Bank, a participation in such
Letter of Credit equal to such Revolving Credit Lender's Revolving Credit
Commitment Percentage of the face amount of such Letter of Credit, effective
upon the issuance of such Letter of Credit; PROVIDED, HOWEVER, that no Revolving
Credit Lender shall be required to acquire participations in Letters of Credit
that would result in its Revolving Credit Commitment Percentage of all Revolving
Credit Outstandings to be greater than its Revolving Credit Commitment. In
consideration and in furtherance of the foregoing, each Revolving Credit Lender
hereby absolutely and unconditionally agrees to pay to the Agent, for the
account of the Issuing Bank, in accordance with Section 3.4 below, such
Revolving Credit Lender's Revolving Credit Commitment Percentage of each Letter
of Credit Disbursement.
(b) Each Revolving Credit Lender acknowledges and agrees that its
obligation to acquire participations pursuant to paragraph (a) above in respect
of Letters of Credit is absolute and unconditional and shall not be affected by
any circumstances whatsoever, including the occurrence and continuance of
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an Event of Default or Default hereunder, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.
Section 3.4. LETTER OF CREDIT DISBURSEMENTS.
(a) If the Agent has not received from the Borrower the payment permitted
pursuant to paragraph (b) of this Section 3.4 by 11:00 a.m., Boston time, on the
date on which the Issuing Bank has notified the Borrower that payment of a draft
presented under any Letter of Credit will be made, as provided in such paragraph
(b), the Agent shall promptly notify the Issuing Bank and each other Lender of
the Letter of Credit Disbursement and, in the case of each Revolving Credit
Lender, its Revolving Credit Commitment Percentage of such Letter of Credit
Disbursement. Each Revolving Credit Lender shall promptly pay to the Agent (or,
if the Issuing Bank shall elect to defer reimbursement from the Revolving Credit
Lenders hereunder, at such later time as the Issuing Bank shall specify by
notice to the Agent and the Revolving Credit Lenders), such Revolving Credit
Lender's Revolving Credit Commitment Percentage of such Letter of Credit
Disbursement, which the Agent shall promptly pay to the Issuing Bank. The Agent
will promptly remit to each Revolving Credit Lender its share of any amounts
subsequently received by the Agent from the Borrower in respect of such Letter
of Credit Disbursement; PROVIDED that amounts so received for the account of any
Revolving Credit Lender prior to payment by such Lender of amounts required to
be paid by it hereunder in respect of any Revolving Credit Disbursement shall be
remitted to the Issuing Bank.
(b) If the Issuing Bank shall receive any draft presented under any Letter
of Credit, the Issuing Bank shall give notice thereof as provided in PARAGRAPH
(c) below. If the Issuing Bank shall pay any draft presented under a Letter of
Credit, the Borrower may (but shall not be required to) pay to the Agent, for
the account of the Issuing Bank, an amount equal to the amount of such draft
before noon, Boston time, on the Business Day on which the Issuing Bank shall
have notified the Borrower that payment of such draft will be made. The Agent
will promptly pay any such amounts received by it to the Issuing Bank. If the
Borrower shall not elect to make such payment, the Borrower shall pay to the
Agent, on behalf of the Issuing Bank, an amount equal to the Letter of Credit
Disbursement made by the Issuing Bank, together with interest thereon at the
rate then applicable to Base Rate Loans pursuant to SECTION 2.7 from and
including the date of such Letter of Credit Disbursement to but excluding the
date of payment, on or prior to the date one Business Day following the date of
such Letter of Credit Disbursement.
(c) The Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a
Letter of Credit to ascertain that the same appear on their face to be in
substantial conformity with the terms and conditions of such Letter of Credit.
The Issuing Bank shall as promptly as reasonably practicable give oral
notification, confirmed in writing, to the Agent and the Borrower of such
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demand for payment and the determination by the Issuing Bank as to whether such
demand for payment was in accordance with the terms and conditions of such
Letter of Credit and whether the Issuing Bank has made or will make a Letter of
Credit Disbursement thereunder, provided that the failure to give such notice
shall not relieve the Borrower of its obligation to reimburse such Letter of
Credit Disbursement, and the Agent shall promptly give each Revolving Credit
Lender notice thereof.
Section 3.5. OBLIGATION TO REPAY LETTER OF CREDIT DISBURSEMENTS, ETC. The
Borrower assumes all risks in connection with the Letters of Credit and the
Borrower's obligation to repay Letter of Credit Disbursements shall be absolute,
unconditional and irrevocable under any and all circumstances and irrespective
of:
(i) any lack of validity or enforceability of any Letter of
Credit;
(ii) the existence of any claim, setoff, defense or other right
which the Borrower or any other person may at any time have against the
beneficiary under any Letter of Credit, the Agent or the Issuing Bank
(other than the defense of payment in accordance with the terms of this
Agreement or a defense based on the gross negligence or willful misconduct
of the Issuing Bank) or any other Person in connection with this Agreement
or any other agreement or transaction;
(iii) any draft or other document presented under a Letter of Credit
proving to be forged, fraudulent, invalid or insufficient in any respect
or any statement therein being untrue or inaccurate in any respect; and
(iv) any other circumstance or event whatsoever, whether or not
similar to any of the foregoing.
It is understood that in making any payment under a Letter of Credit (A)
the Issuing Bank's exclusive reliance as to any and all matters set forth
therein, including reliance on the amount of any draft presented under such
Letter of Credit, whether or not the amount due to the beneficiary equals the
amount of such draft and whether or not any document presented pursuant to such
Letter of Credit proves to be insufficient in any respect, if such document on
its face appears to be in order, and whether or not any such Letter of Credit
proves to be forged or invalid or any statement therein proves to be inaccurate
or untrue in any respect whatsoever and (B) any noncompliance in any immaterial
respect of the documents presented under a Letter of Credit with the terms
thereof, shall, in each case, not be deemed willful misconduct or gross
negligence of the Issuing Bank. It is further understood that in making any
payment under a Letter of Credit, the Issuing Bank's payment of any draft
presented under such Letter of Credit, if such document on its face is clearly
not in order, shall be deemed willful misconduct or gross negligence of the
Issuing Bank.
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The Borrower absolutely and unconditionally agrees to hold the Issuing
Bank harmless from, and to indemnify the Issuing Bank immediately upon demand by
the Issuing Bank at any time and as often as the occasion therefor may require
against, any and all claims, demands, suits, actions, damages, losses, costs,
expenses and other liabilities whatsoever which shall at any time or times be
incurred or sustained by the Issuing Bank on account of, or in relation to, or
in any way in connection with, the Letters of Credit except that the Borrower
shall not be liable to the Lenders for any claims, demands, suits, actions,
damages, losses, costs, expenses and other liabilities resulting from the gross
negligence or willful misconduct of the Issuing Bank.
Section 3.6 LETTER OF CREDIT FEES. The Borrower agrees to pay to the Agent
(a) for the account of the Revolving Credit Lenders, a fee in an amount equal to
the product of (i) the average undrawn face amount of each Letter of Credit
outstanding during all or any part of the applicable calendar quarter multiplied
by (ii) an annual rate equal to the Applicable Margin for Eurodollar Loans
during such calendar quarter and (b) for the account of the Issuing Bank, a fee
(the "ISSUING BANK FEE") in an amount equal to the product of (i) the average
undrawn face amount of each Letter of Credit outstanding during all or any part
of the applicable calendar quarter multiplied by (ii) an annual rate equal to
0.125% (the fees described in clause (a) of this SECTION 3.6 and the Issuing
Bank Fees shall be referred to herein collectively as the "LETTER OF CREDIT
FEES"). Letter of Credit Fees shall be payable (i) quarterly in arrears on each
of the Quarterly Dates and (ii) on the earlier of the Maturity Date and the date
the Revolving Credit Commitments terminate.
Section 3.7 LETTER OF CREDIT APPLICATIONS. To the extent that any
provision of any Letter of Credit Application is inconsistent with the
provisions of this ARTICLE III, the provisions of this ARTICLE III shall apply.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
The Principal Companies hereby jointly and severally represent and warrant
to the Lenders, the Agent and the Issuing Bank as follows:
Section 4.1. ORGANIZATION, ETC. Each of the Principal Companies (a) is
duly organized, validly existing and in good standing under the laws of its
state of organization or incorporation, (b) has all corporate power and
authority, and all material licenses, permits, franchises, consents and
approvals, required to own its Assets and carry on its business as now conducted
and as proposed to be conducted, (c) is duly qualified to do business and is in
good standing as a foreign corporation in each jurisdiction where the nature of
its properties or its business requires such qualification unless the failure to
so qualify could not reasonably be expected to have a Material Adverse Effect.
SCHEDULE 4.1
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accurately and completely lists, as to (i) the Borrower as of the date hereof:
(A) its state of incorporation and (B) the classes and number of authorized and
outstanding shares of its Capital Stock, and (ii) each of the other Principal
Companies: (A) the state of incorporation of each such corporation and (B) the
classes and number of authorized and outstanding shares of Capital Stock of each
such corporation, and the owners of such outstanding shares of Capital Stock.
All the issued and outstanding shares of Capital Stock of each Restricted
Subsidiary have been duly and validly issued and are fully paid and
non-assessable. All the issued and outstanding shares of Capital Stock of each
Restricted Subsidiary, except for the pledge of such Capital Stock pursuant to
the Stock Pledge Agreements, are owned by the Persons identified on SCHEDULE
4.1, free and clear of any Liens or restrictions on transfer. There are no
outstanding warrants, options, contracts or commitments of any kind entitling
any Person to purchase or otherwise acquire any Capital Stock of any Restricted
Subsidiary nor are there outstanding any securities which are convertible into
or exchangeable for any Capital Stock of any Restricted Subsidiary. Except for
the obligations of the Borrower, Saga Broadcast and Saga of Iowa under the Stock
Pledge Agreements, there are no outstanding commitments, options, warrants,
calls or other agreements (whether written or oral) binding on any Principal
Company to issue, sell, grant, transfer, assign, mortgage, pledge or otherwise
dispose of any Capital Stock of any Restricted Subsidiary. No shares of Capital
Stock of any Restricted Subsidiary are subject to (A) any restrictions on
transfer pursuant to any Governing Documents of such Restricted Subsidiary, or
(B) any shareholders agreements, voting trusts, voting agreements, trust
agreements, trust deeds, irrevocable proxies or any other similar agreements or
instruments (whether written or oral). The Principal Companies shall promptly
notify the Agent in writing of any changes which would make any of the
representations set forth in this SECTION 4.1 untrue, inaccurate or incomplete.
Section 4.2. POWER; AUTHORITY; CONSENTS; NO CONFLICTS. Each of the
Principal Companies has the power and corporate authority to execute and deliver
the Transaction Documents and to perform the Loan Documents and the Ancillary
Documents to which it is a party. The Borrower has the power to borrow and
request Letters of Credit hereunder and has taken all necessary action to
authorize the borrowings and requests for Letters of Credit hereunder on the
terms and conditions of this Agreement. Each of the Principal Companies has
taken all necessary action, corporate or otherwise, to authorize the execution
and delivery of the Transaction Documents and the performance of the Loan
Documents and the Ancillary Documents to which it is a party. The execution and
delivery by each Principal Company of each of the Transaction Documents and the
performance of each of the Loan Documents and each of the Ancillary Documents to
which it is or is to become a party do not and will not (i) contravene or result
in a breach of any Requirement of Law, (ii) conflict with or result in a breach
of or (with the giving of notice or lapse of time, or both) a default under any
Contractual Obligation of any Principal Company, or (iii) result in or require
the creation of any Lien on any Assets of any Principal Company, except for
Liens created pursuant to the Security
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Documents. No consent or approval of any Person, no waiver of any Lien or right
of distraint or other similar right and no consent, license, certificate of
need, approval, authorization or declaration of any Governmental Authority,
including the FCC, is or will be required in connection with the Transaction,
the execution and delivery by the Principal Companies of the Transaction
Documents or the performance of the Loan Documents and the Ancillary Documents,
or the validity, enforcement or priority of the Loan Documents or any Lien
created and granted thereunder, except as set forth on SCHEDULE 4.2, each of
which either has been duly and validly obtained on or prior to the date hereof
and is now in full force and effect.
Section 4.3. DUE EXECUTION, VALIDITY AND ENFORCEABILITY. Each Transaction
Document has been duly executed and delivered by each Principal Company which is
a party thereto and each of the Loan Documents and the Ancillary Documents
constitutes the legal, valid and binding obligation of such Principal Company,
enforceable in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, moratorium, reorganization or other similar
laws affecting generally the enforcement of creditors' rights or by general
principles of public policy and except to the extent that the availability of
the remedy of specific performance or injunctive relief is subject to the
discretion of the court before which any proceeding therefor may be brought.
Section 4.4. PRIORITY OF LIENS; CONDITION OF ASSETS.
(a) All the Assets owned by each Principal Company are owned by it free
and clear of any Lien, except Liens permitted by SECTION 9.2. Each of the
Principal Companies has granted to the Collateral Trustee a perfected
first-priority security interest (to the maximum extent permitted by applicable
law and subject only to Liens permitted by Section 9.2) in all of its Assets,
other than those Assets described on SCHEDULE 4.4(a) or excluded by the express
terms of the Security Documents (any such Assets which are not so described on
SCHEDULE 4.4(a) and are not so excluded by the express terms of the Security
Documents are sometimes referred to herein as the "PERFECTED COLLATERAL"). The
Liens which have been created and granted by the Security Documents, to the
extent such Liens may be perfected by filing a financing statement under the
Uniform Commercial Code of the applicable jurisdiction, or by recording an
assignment or other appropriate documents with the U.S. Patent and Trademark
Office or the United States Copyright Office, or by taking possession of
securities or instruments, or by recording a mortgage or deed of trust in the
real estate records of the applicable jurisdiction, constitute valid perfected
first-priority Liens on the Perfected Collateral, subject to no prior or equal
Lien except as permitted by SECTION 9.2. All Assets of each Principal Company
which are reasonably necessary for the operation of its business are in good
working condition, ordinary wear and tear excepted, and are able to serve the
function for which they are currently being used. Each Principal Company enjoys
peaceful and undisturbed possession under all
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material leases of real and personal property to which it is a party, and all
such material leases are valid and subsisting and in full force and effect.
(b) The Principal Companies are not engaged in any business or activities
other than (i) holding shares of capital stock of other Principal Companies,
(ii) acquiring, owning, operating and disposing of Stations and engaging in
Permitted LMA Transactions and (iii) making other Investments permitted by
Section 9.4.
(c) The only material instrument held by any Principal Company as of the
effectiveness of this Agreement is the Christian Note.
Section 4.5. JUDGMENTS, ACTIONS, PROCEEDINGS. There are no outstanding
judgments, actions or proceedings, including any Environmental Proceeding,
pending before any Governmental Authority (including the FCC) with respect to
or, to the best of the Principal Companies' knowledge, threatened against or
affecting any Principal Company or any Assets of any Principal Company
(including any Assets to be acquired and any obligations to be assumed in any
Permitted Acquisition) which, if adversely determined, could (either
individually or in the aggregate) reasonably be expected to have a Material
Adverse Effect.
Section 4.6. NO DEFAULTS; COMPLIANCE WITH LAWS. No Default or Event of
Default is continuing. No Principal Company is in default under or has failed to
comply with any Requirement of Law or any Contractual Obligation to which it or
any of its Assets are bound, except for such defaults or failures which could
not reasonably be expected to have a Material Adverse Effect. Each Principal
Company has complied and is in compliance in all respects with each of its
Governing Documents and in all material respects with the Communications Act.
Section 4.7. BURDENSOME DOCUMENTS. Except as set forth on SCHEDULE 4.7, no
Principal Company is a party to or bound by, and no Assets of any Principal
Company are affected by, any Requirement of Law or any Contractual Obligation
which could have a Material Adverse Effect.
Section 4.8. GOVERNING DOCUMENTS. The Agent has been furnished with true
and complete copies of all Governing Documents of each Principal Company.
Section 4.9. FINANCIAL INFORMATION.
(a) FINANCIAL STATEMENTS. All balance sheets, all statements of operations
and of cash flows, and all other financial statements which have been furnished
by or on behalf of any of the Principal Companies to the Agent or any Lender for
the purposes of or in connection with this Agreement or any transaction
contemplated hereby, including the audited consolidated and consolidating
balance sheets of the Borrower and its Subsidiaries at December
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31, 1997 and the related audited consolidated and consolidating statements of
operations and cash flows for the fiscal year of the Borrower then ended,
certified, in the case of the consolidated statements, by Ernst & Young
(collectively, together with the notes thereto, the "HISTORICAL FINANCIALS"),
have been prepared in accordance with GAAP consistently applied throughout the
periods involved (except as disclosed therein) and present fairly the financial
position and the results of operations of the Borrower and its Subsidiaries and
of the Borrower and its Restricted Subsidiaries as at the date thereof and for
the periods then ended. None of the Principal Companies has any material
contingent liability or liabilities for taxes, long-term leases or unusual
forward or long-term commitments as of the date hereof which are not reflected
in the Historical Financials or in the notes thereto.
(b) PROJECTIONS. The Projections have been prepared on the basis of the
assumptions accompanying them and reflect as of the date thereof the Borrower's
good faith projections, after reasonable analysis, of the matters set forth
therein, based on such assumptions.
Section 4.10. NO MATERIAL CHANGES. Since the Balance Sheet Date, there has
been no change, and no development or event involving a prospective change in
the Assets, business, operations, prospects or condition, financial or
otherwise, of any Principal Company, which has had or could reasonably be
expected to have a Material Adverse Effect.
Section 4.11. TAXES. Each Principal Company has filed all returns for
Taxes required to be filed by it and has not failed to pay any Taxes, or
interest or penalties relating thereto, on or before the due dates thereof.
Except as set forth on SCHEDULE 4.11: (i) as of the date hereof, there are no
material liabilities for Taxes of any Principal Company due or to become due and
(ii) there are no material claims pending or, to the knowledge of the Borrower,
proposed or threatened against any Principal Company for past Taxes, except
those, if any, as to which proper reserves are reflected in the Financial
Statements.
Section 4.12. INTANGIBLE ASSETS. Each Principal Company possesses all
patents, Trademarks, Copyrights and rights with respect to the foregoing
reasonably necessary to conduct its business as now conducted and as proposed to
be conducted, without any known conflict with the patents, Trademarks,
Copyrights and rights with respect to the foregoing of any other Person.
Section 4.13. LICENSES AND APPROVALS.
(a) Each Principal Company has all requisite power and authority and
necessary licenses and permits, including all FCC Licenses, to own and operate
the Assets (including Stations) owned or operated by it and to carry on its
businesses as now conducted.
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(b) Set forth in SCHEDULE 4.13 is a complete list of all FCC Licenses of
the Principal Companies as of the date hereof. Each FCC License which is
necessary to the operation of the business of any Principal Company is validly
issued and in full force and effect or to the extent described in SCHEDULE 4.13,
special temporary authority has been sought from the FCC to operate the
facilities for which such FCC authority is required. Each Principal Company has
fulfilled and performed all of its obligations in all material respects with
respect to each such FCC License. No events or occurrences have occurred which
individually or in the aggregate: (i) have resulted in the revocation or
termination of any such FCC License, or (ii) materially and adversely affect or
could reasonably be expected to materially adversely affect any of the rights of
any Principal Company thereunder. Except as set forth on SCHEDULE 4.13, as of
the date hereof, no license or franchise, other than the FCC Licenses described
in SCHEDULE 4.13, is necessary for the operation of the business (including the
Stations) of the Principal Companies as now conducted.
(c) No Principal Company is a party to nor does any Principal Company have
knowledge of any investigation, notice of violation, order or complaint issued
by or before any Governmental Authority, including the FCC, or of any other
proceedings (other than proceedings relating to the communications industry
generally) which could (individually or in the aggregate) reasonably be expected
to have a Material Adverse Effect. No Principal Company has reason to believe
(other than in connection with there being no legal assurance thereof) that any
of the FCC Licenses necessary to the operation of the business of any Principal
Company will not be renewed in the ordinary course. Each Principal Company has
filed all material reports, applications, documents, instruments and information
required to be filed by it pursuant to applicable rules and regulations or
requests of every regulatory body having jurisdiction over any of its FCC
Licenses or the activities of the Principal Companies with respect thereto.
Section 4.14. ENVIRONMENTAL COMPLIANCE. Each of the Borrower Affiliated
Companies has obtained all environmental, health and safety permits, licenses
and other authorizations required under all applicable Environmental Laws to
carry on its business as now being or as proposed to be conducted, except to the
extent failure to have any such permit, license or authorization would not
(either individually or in the aggregate) reasonably be expected to have a
Material Adverse Effect. Each of such permits, licenses and authorizations is in
full force and effect and each of the Borrower Affiliated Companies is in
compliance with the terms and conditions thereof, and is also in compliance with
all other limitations, restrictions, conditions, standards, prohibitions,
requirements, obligations, schedules and timetables contained in any applicable
Environmental Law or in any regulation, code, plan, order, decree, judgment,
injunction, notice or demand letter issued, entered, promulgated or approved
thereunder, except to the extent failure to comply therewith would not (either
individually or in the aggregate) reasonably be expected to have a Material
Adverse Effect. On the date hereof, except as set forth in SCHEDULE 4.14 hereto,
there are no underground storage tanks or
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surface impoundments for Hazardous Substances, active or abandoned, at any site
or facility owned, operated or leased by the Borrower.
Section 4.15. EMPLOYEE BENEFIT PLANS.
(a) IN GENERAL:
(i) Each Employee Benefit Plan of each of the Principal Companies
has been maintained and operated in compliance in all material respects
with the applicable provisions of ERISA and the Code, including the
provisions thereunder respecting prohibited transactions. Each Principal
Company has heretofore delivered to the Agent the most recently completed
annual report, Form 5500, with all required attachments, and actuarial
statement required to be submitted under ss.103(d) of ERISA, with respect
to each Guaranteed Pension Plan.
(ii) Set forth on SCHEDULE 4.15, as of the date hereof, is a list
of each material pension, retirement or similar plan or obligation of the
Principal Companies.
(b) RETIREE WELFARE OBLIGATIONS. The Principal Companies are not obliged
to provide health or life benefits to employees beyond their termination of
employment (other than as mandated by law) under any Employee Benefit Plan which
is a welfare plan within the meaning of Section 3(1) of ERISA to an extent that
would impair their ability to make timely the payments provided for under this
Agreement.
(c) GUARANTEED PENSION PLANS. Each contribution required to be made to a
Guaranteed Pension Plan, whether required to be made to avoid the incurrence of
an accumulated funding deficiency, the notice or lien provisions of ss.302(f) of
ERISA, or otherwise, has been timely made. No waiver of an accumulated funding
deficiency or extension of amortization periods has been received with respect
to any Guaranteed Pension Plan. No liability to the PBGC (other than required
insurance premiums, all of which have been paid on a timely basis) has been
incurred by any of the Principal Companies or any ERISA Affiliate with respect
to any Guaranteed Pension Plan, and there has not been any ERISA Reportable
Event (other than an event as to which the requirement of 30 days notice has
been waived), or any other event or condition, which presents a material risk of
termination of any Guaranteed Pension Plan by the PBGC. Based on the latest
valuation of each Guaranteed Pension Plan and on the actuarial methods and
assumptions employed for that valuation, the aggregate accrued benefits of all
such Guaranteed Pension Plans did not exceed the aggregate value of the assets
of all such Plans by more than $100,000 Dollars, disregarding for this purpose
the accrued benefits and assets of any Guaranteed Pension Plan with assets in
excess of accrued benefits.
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(d) MULTIEMPLOYER PLANS. None of the Principal Companies or any ERISA
Affiliate has incurred any unpaid material liability (including secondary
liability) to any Multiemployer Plan as a result of a complete or partial
withdrawal from such Multiemployer Plan under ss.4201 of ERISA or as a result of
a sale of assets described in ss.4204 of ERISA. None of the Principal Companies
or any ERISA Affiliate has been notified that any Multiemployer Plan is in
reorganization or insolvent under and within the meaning of ss.4241 or ss.4245
of ERISA or that any Multiemployer Plan intends to terminate or has been
terminated under ss.4041A of ERISA.
Section 4.16. LABOR DISPUTES; COLLECTIVE BARGAINING AGREEMENTS; EMPLOYEE
GRIEVANCES. As of the date hereof, except as set forth on SCHEDULE 4.16: (a)
there are no collective bargaining agreements or other labor contracts covering
any Principal Company or any Station; (b) no such collective bargaining
agreement or other labor contract will expire prior to the Maturity Date; (c)
there is no pending or threatened Material Labor Dispute against or affecting
any Principal Company or any Station or its representative employees; and (d)
each Principal Company has complied with, is in compliance with and will
continue to comply with the provisions of the Fair Labor Standards Act.
Section 4.17. INSURANCE. Each Principal Company has obtained all property
and liability insurance with reputable insurance companies satisfactory to the
Agent insuring against such risks and in such amounts as required by Section
8.5. Set forth on SCHEDULE 4.17 is a true, correct and complete list, as of the
Effective Date, of all insurance of any nature maintained by each Principal
Company (including all material fire, theft, casualty, general liability,
workers compensation, business interruption, automobile and other insurance
policies insuring the Assets or business operations of each Principal Company),
specifying the type of coverage, the amount of coverage, the premium, the
insurer and the expiration date of each such policy (collectively, the
"INSURANCE POLICIES"). True, correct and complete copies of all of the Insurance
Policies have been made available by the Borrower to the Agent. All the
Insurance Policies are in full force and effect. All premiums (if any) due on
the Insurance Policies or renewals thereof have been paid and there is no
default under any of the Insurance Policies. None of the Principal Companies
have received any notice or other communication from any issuer of the Insurance
Policies canceling or materially amending any of the Insurance Policies, any
deductibles or retained amounts thereunder, or the annual or other premiums
payable thereunder, and no such cancellation or material amendment is
threatened.
Section 4.18. ABSENCE OF CERTAIN RESTRICTIONS. As of the date hereof, no
Principal Company is bound by any Contractual Obligation which, directly or
indirectly, prohibits or limits, or has the effect of prohibiting or limiting,
its incurrence of Indebtedness, its granting of Liens or its payment of
Distributions.
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Section 4.19. ANCILLARY DOCUMENTS. The Borrower has furnished or caused to
be furnished to the Agent true and complete copies of each Ancillary Document.
No default by any Principal Company is continuing under any Ancillary Document
which, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect. The Principal Companies are not aware of any default by
any other Person under any Ancillary Document to which such Person and any
Principal Company are a party which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.
Section 4.20. SOLVENCY.
(a) FAIR SALABLE VALUE OF ASSETS. The fair salable value of the
Assets of the Borrower exceeds the amount that will be required to be paid on or
in respect of the existing debts and other liabilities (including contingent
liabilities) of the Borrower as they mature.
(b) CAPITAL NOT UNREASONABLY SMALL. The Assets of the Borrower do
not constitute unreasonably small capital for the Borrower to carry out its
business as now conducted and as proposed to be conducted including the capital
needs of the Borrower, taking into account the particular capital requirements
of the business conducted by the Borrower, and the projected capital
requirements and capital availability thereof.
(c) INCURRENCE OF DEBTS. The Borrower does not intend to and will
not incur debts beyond its ability to pay such debts as they mature taking into
account the timing and amounts of cash to be received by the Borrower and of
amounts to be payable on or in respect of obligations of the Borrower. The cash
flow of the Borrower, after taking into account all anticipated uses of the cash
of the Borrower, will at all times be sufficient to pay all such amounts on or
in respect of debt of the Borrower when such amounts are required to be paid.
Section 4.21. APPLICATION OF CERTAIN LAWS AND REGULATIONS. No Principal
Company is an "investment company", or a company "controlled" by an "investment
company", within the meaning of the Investment Company Act of 1940, as amended.
No Principal Company is a "holding company", or a "subsidiary company" of a
"holding company", or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company", as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended. No Principal Company is a Person
prohibited from acquiring or holding a broadcasting license by the
Communications Act. No Principal Company is subject to any Requirement of Law
which regulates the incurring of Indebtedness for Borrowed Money.
Section 4.22. YEAR 2000 PROBLEM. The Principal Companies have reviewed the
areas within their businesses and operations which could be adversely affected
by, and have developed or are developing a program to
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address on a timely basis the Year 2000 Problem. Based upon such review, the
Principal Companies reasonably believe that the Year 2000 Problem will not have
any Material Adverse Effect. As of the date hereof, the Borrower has budgeted
approximately $500,000 to address the Year 2000 Problem
Section 4.23. NO MATERIAL REAL PROPERTY; NO MATERIAL INTELLECTUAL
PROPERTY. As of the date hereof, no Principal Company owns (i) Material Real
Property or (ii) has any Material Intellectual Property.
Section 4.24. FULL DISCLOSURE. To the best knowledge of the Principal
Companies, none of the Transaction Documents, the Loan Documents, the Historical
Financials, or any other agreement, instrument, document, certificate, statement
or letter furnished to the Agent or any Lender by or on behalf of any Principal
Company in connection with any of the transactions contemplated by this
Agreement, contains any untrue statement of a material fact or omits to state a
material fact necessary in order to make the statements contained therein, taken
as a whole together with all Public Filings made by the Principal Companies, not
misleading in light of the circumstances in which they are made. Other than
publicly known matters affecting the communications industry generally and
publicly known matters affecting the local economies of the markets in which the
Principal Companies operate, there is no fact known to the Principal Companies
which has caused or is reasonably likely to cause a Material Adverse Effect,
which fact is not set forth in the Transaction Documents, the Loan Documents,
the Historical Financial Statements, the Public Filings or any other
certificate, opinion or other statement furnished to each Lender.
Section 4.25. LETTERS OF CREDIT. As of the effectiveness hereof, (i) no
Letters of Credit (as defined in the Existing Credit Agreement) are outstanding,
(ii) all Letter of Credit Disbursements (as defined in the Existing Credit
Agreement) have been repaid and (iii) all Letter of Credit Fees (as defined in
the Existing Credit Agreement) have been paid.
ARTICLE V
CONDITIONS TO CREDIT EXTENSIONS
Section 5.1. CONDITIONS TO INITIAL CREDIT EXTENSIONS. The fulfillment (to
the reasonable satisfaction of the Agent) of the following conditions precedent
shall be required before this Agreement becomes effective and before the Lenders
have any obligation to make the initial Credit Extensions:
(a) TRANSACTION DOCUMENTS AND LOAN DOCUMENTS.
(i) Each of the Transaction Documents shall have been duly and
properly authorized, executed and delivered by the respective party or
parties thereto and each of the Transaction Documents and the Loan
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Documents shall be in full force and effect as of the effectiveness of
this Agreement.
(ii) An executed original of each of the Revolving Credit Notes,
the Term Loan Notes and the Acquisition Loan Notes shall have been
delivered to the Agent. Executed originals or (as the case may be)
executed counterparts of each of the other Transaction Documents shall
have been delivered to the Agent. Each of the Transaction Documents (other
than this Agreement) executed and delivered to the Agent shall be
substantially in the form of the appropriate EXHIBIT hereto.
(b) CORPORATE DOCUMENTS. The Agent shall have received:
(i) a copy of the certificate of incorporation (or similar
Governing Documents) of each Principal Company, certified as of a recent
date by the Secretary of State of the state of incorporation of each
Principal Company;
(ii) a certificate stating that each Principal Company is a
corporation duly organized, validly existing and in good standing under
the laws of its state of incorporation, signed as of a recent date by the
Secretary of State of such state;
(iii) a certificate stating that (A) each Principal Company is
qualified to do business under the laws of each state wherein the
character of the properties owned or held under lease by any Principal
Company or the nature of the Business conducted by it would require that
such Principal Company qualify as a foreign corporation and (B) such
Principal Company is in good standing under the laws of such state, signed
as of a recent date by the Secretary of State of such state; and
(iv) a certificate of a duly authorized officer of each Principal
Company dated the Effective Date and certifying (A) that attached thereto
is a true and complete copy of the by-laws of such Principal Company as in
effect on the Effective Date, (B) that the certificate of incorporation
(or similar Governing Documents) of such Principal Company has not been
amended since the last amendment referred to in the certificates delivered
pursuant to clause (i) above, (C) that attached thereto are true and
correct copies of the records of all corporate action taken by such
Principal Company to authorize its execution and delivery of the
Transaction Documents and its performance of the Loan Documents (and the
borrowings and other transactions contemplated thereby), and that such
corporate actions have not been modified, rescinded or amended and are in
full force and effect on the Effective Date, and (D) as to the incumbency,
the name and a specimen signature of each individual who shall be
authorized: (1) to sign, in the name and on behalf of such Principal
Company, the
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Transaction Documents to which such Principal Company is or is to be a
party; (2) to give notices and to take other action on its behalf under
this Agreement; and (3) to make (in the case of the Borrower) applications
for Loans and Letters of Credit.
(c) REPRESENTATIONS AND WARRANTIES. Each of the representations and
warranties made by or on behalf of any of the Principal Companies in any of the
Transaction Documents or the other Loan Documents shall have been true and
correct in all material respects when made, and shall continue to be true and
correct in all material respects as of the effectiveness of this Agreement.
(d) LIEN SEARCHES. The Agent shall have received written advice, in form
and substance reasonably satisfactory to the Agent, relating to such Lien and
judgment searches as the Agent may require and the results of such searches
shall be satisfactory to the Agent.
(e) FILINGS, REGISTRATION AND RECORDINGS. Any documents (including UCC-1
financing statements or UCC-3 termination statements) required by the Agent or
the Agent's Special Counsel to be recorded or filed in order to (i) release any
Liens on any Assets of the Principal Companies (other than Liens permitted by
Section 9.2) and (ii) create, in favor of the Collateral Trustee, a perfected
first-priority Lien on Assets of the Principal Companies (other than those
Assets listed on SCHEDULE 4.4(a) or excluded by the express terms of the
Security Documents) with respect to which a Lien may be perfected by filing a
financing statement under the Uniform Commercial Code of the applicable
jurisdiction, or by recording an assignment or other document with the United
States Copyright Office or the U.S. Patent and Trademark Office, or by recording
a mortgage or deed of trust in the real estate records of the applicable
jurisdiction, shall have been properly recorded or filed in each office in each
jurisdiction required. The Agent shall have received acknowledgment copies of
all such recordings and filings (or in lieu thereof, the Agent shall have
received other evidence satisfactory to it that all such recordings and filings
have been made); and the Agent shall have received evidence that all necessary
recording and filing fees and all taxes or other expenses related to such
filings have been paid in full. Any other action, including the taking of
possession of securities or instruments by the Collateral Trustee, required in
order to create in favor of the Collateral Trustee, for the ratable benefit of
the Agent and the Lenders, a perfected first-priority Lien on such Assets to the
extent such Liens may be perfected by filing a financing statement under the
Uniform Commercial Code of the applicable jurisdiction, or by recording an
assignment or other document with the United States Copyright Office or the U.S.
Patent and Trademark Office, or by recording a mortgage or deed of trust in the
real estate records of the applicable jurisdiction, or by taking possession of
the securities or instruments, shall have been properly taken in order to create
such a perfected first-priority Lien, subject only to Liens permitted by Section
9.2.
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(f) INSURANCE. The Agent shall have received evidence, in form and
substance satisfactory to the Agent, that (i) each Principal Company has
obtained the policies of insurance required by the Loan Documents which
insurance shall be in form and substance satisfactory to the Agent, and (ii) the
Agent shall have been named additional insured with respect to all liability
insurance policies to the extent requested by the Agent, and the Collateral
Trustee shall have been named loss payee with respect to all casualty insurance
policies to the extent requested by the Collateral Trustee and (iii) all other
requirements of any Loan Document with respect to insurance shall have been
fulfilled.
(g) FEES. The Borrower shall have paid to the Agent all fees required to
be paid to the Agent on the Effective Date pursuant to the Fee Letter.
(h) LEGAL OPINIONS. The Agent shall have received a written legal opinion,
with a counterpart for each Lender, addressed to the Agent and the Lenders,
dated the Effective Date, from (i) Xxxxxxx & Xxxxxx, general counsel to the
Principal Companies, and such opinion shall be in form and substance
satisfactory to the Agent, and (ii) Xxxxxxxxx & Belendiuk, P.C., special FCC
counsel to the Principal Companies, and such opinion shall be in form and
substance satisfactory to the Agent.
(i) PAYMENT OF COSTS AND EXPENSES. The Borrower shall have reimbursed the
Agent for all reasonable out-of-pocket expenses (other than fees of the Agent's
Special Counsel) incurred by the Agent through the Effective Date in connection
with structuring and syndicating the Facilities and preparation, review,
negotiation, execution and delivery of the Transaction Documents and review of
the Loan Documents. The Borrower shall have paid all amounts required to be paid
by it through the Effective Date under the letter agreement (the "SPECIAL
COUNSEL FEE AGREEMENT") among the Borrower, the Agent and the Agent's Special
Counsel in respect of fees of the Agent's Special Counsel.
(j) DELIVERY OF FINANCIAL STATEMENTS. The Borrower shall have furnished to
each of the Lenders the Historical Financials and the Projections.
(k) REAL ESTATE APPRAISALS NOT REQUIRED. The Agent shall be satisfied that
no real estate appraisals are required or necessary as to the market value of
any real property of the Principal Companies subject to a Mortgage under 12
U.S.C. 93a and title XI of the Financial Institutions, Reform, Recovery and
Enforcement Act of 1989 and the corresponding regulations under 12 C.F.R. 34.41
ET. SEQ. (1990).
(l) DELIVERY OF CONSENTS. The Agent shall have received copies of all
consents referred to on SCHEDULE 4.2, including consents of the FCC, if any,
required in connection with the transactions contemplated by the Transaction.
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(m) EFFECTIVE DATE CERTIFICATE. The Agent shall have received the duly
executed and completed Effective Date Certificate substantially in the form
attached hereto as EXHIBIT C.
(n) LENDER ASSIGNMENTS. Each Existing Lender shall have assigned all of
the Obligations of the Principal Companies to such Existing Lender under the
Existing Credit Agreement and the other Loan Documents (as defined in the
Existing Credit Agreement) to the Agent for reallocation to Lenders hereunder
pursuant to the Lender Assignment Agreements and each such Existing Lender shall
have delivered a fully executed copy of its Lender Assignment Agreement to the
Agent and the Borrower shall have acknowledged and executed the same.
(o) PAYMENT OF AMOUNTS UNDER EXISTING CREDIT AGREEMENT. The Borrower
shall have paid all accrued and unpaid interest on the Existing Loans through
the Effective Date, all Fees (as defined in the Existing Credit Agreement)
accrued and unpaid through the Effective Date and all other amounts required to
be paid by the Principal Companies under the Loan Documents (as defined in the
Existing Credit Agreement) through the Effective Date.
(Q) YEAR 2000 COMPLIANCE. The Borrower shall have provided the Agent
with details as to acts previously taken, or to be taken, to address the Year
2000 Problem, including for the remediation, monitoring and testing of the
Principal Companies' computer systems.
Section 5.2. CONDITIONS PRECEDENT TO EACH CREDIT EXTENSION. The obligation
of each Lender and the Issuing Bank to make any Credit Extension (including the
initial Credit Extension) is subject to the satisfaction, as of the date of such
Credit Extension, of each of the following conditions precedent:
(a) REQUIRED NOTICES.
(i) In the case of any requested Loan, the Agent shall have timely
received from the Borrower an application for such Loan in accordance with
SECTION 2.2 which notice without more shall constitute certification by
the Borrower as to the matters set forth in clause (ii) of paragraph (b)
below and paragraphs (c) and (d) below; and
(ii) In the case of any requested Letter of Credit, the Agent and
the Issuing Bank shall have timely received from the Borrower a request
for such Letter of Credit in accordance with ARTICLE III hereof, which
notice without more shall constitute certification by the Borrower as to
the matters set forth in paragraphs (b), (c) and (d) below.
(b) LEGALITY OF TRANSACTIONS. It shall not be unlawful (i) for the
Collateral Trustee, the Agent or the Lenders to perform any of their obligations
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under any of the Loan Documents or (ii) for any Principal Company to perform any
of its obligations under any of the Loan Documents.
(c) REPRESENTATIONS AND WARRANTIES. Each of the representations and
warranties made by the Principal Companies in this Agreement and the other Loan
Documents shall be true and correct in all material respects as of the date of
the making of such Credit Extension with the same force and effect as if made on
and as of such date (or, if any such representation or warranty is expressly
stated to relate only to a specific date, as of such specific date).
(d) PERFORMANCE, ETC. Each Principal Company shall have duly and properly
performed, complied with and observed in all material respects each of its
obligations contained in this Agreement. No Default or Event of Default shall be
continuing or shall result from the requested Credit Extension.
Each request by the Borrower for a Credit Extension hereunder shall constitute a
certification by the Borrower that the conditions set forth in paragraphs (a)
through (d) of this Section 5.2 have been satisfied as of the date of such
request and as of the date the Credit Extension is made.
ARTICLE VI
GUARANTY
Section 6.1. GUARANTY OF PAYMENT.
(a) GUARANTY. The Guarantors hereby absolutely and unconditionally, and
jointly and severally, guaranty (for purposes of this ARTICLE VI, the
"GUARANTY") to the Agent, the Issuing Bank and each Lender the due and punctual
payment in full of all the Obligations in accordance with their respective
terms, whether such Obligations are outstanding on the date of this Agreement or
arise or are incurred at any time or times thereafter.
(b) GUARANTY OF PAYMENT. If any Principal Company shall fail to make any
payment of any of its Obligations to the Agent, the Issuing Bank or any Lender
when and as the same shall become due and payable, the Guarantors absolutely and
unconditionally promise and jointly and severally to make such payment to the
Agent, the Issuing Bank or such Lender forthwith upon demand by the Agent, the
Issuing Bank or such Lender.
(c) UNLIMITED GUARANTY. Subject to the provisions of Section 6.7, the
liability of each Guarantor under this Guaranty shall be unlimited.
(d) GUARANTY ABSOLUTE. This Guaranty and the obligations of the Guarantors
hereunder shall be in addition to and shall not in any way be prejudiced or
affected by any other Collateral now or at any time or times hereafter held by
the Agent, the Collateral Trustee, the Issuing Bank or any Lender, and every
right, remedy, power or privilege given to the Issuing Bank,
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the Lenders or the Agent under this Guaranty shall be in addition to and not in
limitation of any and every other right, remedy, power or privilege vested in
the Agent, the Collateral Trustee, the Issuing Bank or any Lender under any
other Collateral. No assurance, security or payment of any of the Obligations
which is avoided under any enactment relating to bankruptcy or liquidation or
insolvency, and no release, settlement or discharge given or made by the Issuing
Bank, any Lender or the Agent on the faith of any such assurance, security or
payment, shall prejudice or affect the rights of the Issuing Bank, the Lenders
and the Agent to recover from the Guarantors to the full extent of this Guaranty
as if such assurance, security, payment, release, settlement or discharge (as
the case may be) had never been given or made.
(e) COVENANT BY GUARANTORS. Without prejudice to any of the obligations of
the Guarantors to the Issuing Bank, the Lenders and the Agent under the
foregoing paragraphs of this SECTION 6.1, which obligations are absolute and
unconditional, but as a separate undertaking on the part of the Guarantors, the
Guarantors hereby absolutely covenant and agree to cause, to the extent it is
able, each Principal Company to perform and comply with all of the promises,
covenants, agreements and conditions to be performed and complied with by such
Principal Company which are contained in any of the Loan Documents, and the
Guarantors hereby further agree to take or to cause to be taken, promptly and
without any expense to the Agent, the Issuing Bank, or the Lenders, all such
measures as may be appropriate and can lawfully be effected by such Guarantors
to prevent the occurrence of any Default or Event of Default and to cure or make
good promptly any Default or Event of Default which may occur at any time or
times.
Section 6.2. WAIVERS OF NOTICE, ETC. It is the express intention of the
Guarantors, the Issuing Bank, the Lenders and the Agent that the obligations of
the Guarantors to the Issuing Bank, the Lenders and the Agent under this
Guaranty, this Agreement and under any of the other Loan Documents shall not be
to any extent or in any way or manner whatsoever satisfied, discharged, impaired
or otherwise affected, except by the payment of the Obligations to the Agent,
the Issuing Bank and the Lenders, and then only to the extent of such payment.
Without limitation of the generality of the foregoing provisions of this SECTION
6.2, the obligations of the Guarantors to the Issuing Bank, the Lenders and the
Agent under this Guaranty shall not be to any extent or in any way or manner
whatsoever satisfied, discharged, impaired or otherwise affected by any of the
following, whether or not the Guarantors shall have had any notice thereof:
(a) The dissolution, termination of existence, insolvency, business
failure, appointment of a receiver for all or any part of the property of,
assignment for the benefit of creditors by, or the commencement of any
proceedings under any bankruptcy or insolvency laws by or against, any
Guarantor, any Principal Company, the Issuing Bank, the Agent or any Lender;
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(b) The absorption, merger or consolidation of, or the effectuation of any
other change whatsoever in the name, membership, constitution or place of
formation of, any Guarantor, any Principal Company, the Agent, the Issuing Bank
or any Lender;
(c) Any extension or postponement of the time for the payment of any of
the Obligations, the acceptance of any partial payment thereon, any and all
other indulgences whatsoever by the Agent, the Issuing Bank or any Lender in
respect of any of the Obligations, the taking, addition, substitution or
release, in whole or in part, at any time or times, of any security for any of
the Obligations or the addition, substitution or release, in whole or in part,
of any person or persons primarily or secondarily liable in respect of any of
the Obligations;
(d) Any action or delay in acting or failure to act on the part of the
Agent, the Issuing Bank or any Lender under any of the Loan Documents or in
respect of any of the Obligations or any of the Collateral or otherwise,
including any failure strictly or diligently to assert any right or to pursue
any remedy against any Guarantor or other persons under any of the Loan
Documents or provided by statute or at law or in equity;
(e) Any modification or amendment of, or any supplement or addition to,
the Obligations, this Agreement, any Note, or any of the other Loan Documents;
(f) Any waiver, consent or other action or acquiescence by the Agent, the
Issuing Bank or any Lender at any time or times in respect of any default by any
Guarantor or other persons in the performance or observance of or compliance
with any term, covenant or condition contained in any of the Loan Documents;
(g) The existence or creation at any time or times on or after the date of
this Agreement of any claim, defense, right of set-off or counterclaim of any
nature whatsoever of any Guarantor against any Principal Company, the Agent, the
Issuing Bank or any Lender, or of any Principal Company against any Guarantor,
the Agent, the Issuing Bank or any Lender; or
(h) This Agreement, the Notes, any of the other Loan Documents or any
provisions of any thereof shall at any time and for any reason whatsoever cease
to be in full force and effect or shall be declared null and void or illegal,
invalid, unenforceable or inadmissible in evidence.
Each of the Guarantors hereby absolutely, unconditionally and irrevocably
assents to and waives notice of any and all events, conditions, matters and
things hereinbefore specified in clauses (a) through (h), inclusive, of the
foregoing sentence of this SECTION 6.2. Each of the Guarantors hereby
irrevocably waives presentment, demand, notice, protest, notice of protest,
notice of dishonor and all other demands and notices in connection with the
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delivery, acceptance, performance, default or enforcement of this Agreement, any
Note, any of the other Loan Documents, any of the Obligations or any of the
Collateral.
Section 6.3. ELECTION OF REMEDIES. This Guaranty hereby made by the
Guarantors is the guaranty of the full and punctual payment and performance by
each Principal Company of all the Obligations and NOT of the collectability only
of such Obligations. This Guaranty may be enforced by the Agent, the Issuing
Bank or any Lender from time to time as often as the occasion therefor may
arise, regardless of the adequacy of any other Collateral, and without any
requirement on the part of the Agent, the Issuing Bank or any Lender first to
exercise any rights or remedies against any other persons or to exhaust any
remedies available to the Agent, the Issuing Bank or any Lender against any
other Guarantor or any other persons or to resort to any Collateral in the
possession of the Agent, the Issuing Bank, any Lender or the Collateral Trustee
or under the control of the Agent, the Issuing Bank, any Lender or the
Collateral Trustee or to resort to any other source or means of obtaining
payment or enforcing performance of the Obligations or any of them.
Section 6.4. EXPENSES. The Guarantors hereby, jointly and severally,
unconditionally agree to pay to the Agent, on demand at any time by the Agent,
any and all reasonable costs and expenses which shall at any time or times be
incurred or sustained by the Agent, the Issuing Bank or any Lender in connection
with the enforcement by the Agent, the Issuing Bank or any Lender of all or any
of the rights, remedies, powers or privileges of the Agent, the Issuing Bank or
such Lender under ARTICLE VI of this Agreement (including the reasonable fees
and disbursements of counsel incurred by the Agent, the Issuing Bank or any
Lender in connection therewith).
Section 6.5. UNENFORCEABILITY OF OBLIGATIONS. It is hereby agreed by each
Guarantor as a separate and independent stipulation that, if any other Guarantor
shall cease to have any obligation to discharge its Obligations or any of them
or if any of the moneys included in the Obligations shall become irrecoverable
from any other Guarantor or if any of the Obligations shall become invalid or
unenforceable, in whole or in part, against any other Guarantors for any reason
whatsoever (legal or otherwise), including, but not limited to, any of the
following reasons: (a) any defect in or insufficiency of the powers of any other
Guarantors or any irregular or improper exercise thereof, or (b) the operation
of any statute of limitations or the operation of any other laws now or
hereafter in effect, or (c) the existence of any legal limitation, disability or
incapacity affecting or otherwise relating to any other Guarantor, then this
Guaranty and the obligations of such Guarantor to the Agent, the Issuing Bank
and the Lenders hereunder shall nevertheless be binding on and enforceable
against such Guarantors as if the Obligations were, at the time of demand by the
Agent, the Issuing Bank or any Lender upon the Guarantors for payment under this
Guaranty, fully valid and enforceable against such other Guarantors and as if
such Guarantors were, at the time of such demand, the principal debtors in
respect of all of the Obligations.
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Section 6.6. SUBROGATION RIGHTS; SUBORDINATION OF SUBROGATION RIGHTS. The
rights which any Guarantor shall acquire against any Principal Company as a
consequence of making any payment to the Agent, the Issuing Bank or any Lender
under its Guaranty are, in this Section 6.6, collectively called the
"SUBROGATION RIGHTS." In the event of any proceeding for the distribution,
division or application of all or any part of the assets of any such Principal
Company, whether such proceeding be for the liquidation, dissolution or winding
up of such Principal Company, a receivership, insolvency or bankruptcy
proceeding, an assignment for the benefit of creditors, or a proceeding by or
against such Principal Company for relief under any bankruptcy, reorganization
or insolvency law, if all of the Obligations have not been paid and satisfied in
full in cash at the time, the Agent is hereby irrevocably authorized by such
Guarantor at any such proceeding:
(a) To enforce all the Subrogation Rights of such Guarantor, either in the
name of the Agent, the Issuing Bank or the Lenders or in the name of such
Guarantor, by proof of debt, proof of claim, suit or otherwise;
(b) To collect any assets of such Principal Company distributed or applied
by way of dividend or payment on account of such Subrogation Rights, and to
apply the same, or the proceeds of any realization thereof, towards the payment
of Obligations until all Obligations have been paid and satisfied in full; and
(c) To vote claims arising under or in respect of all such Subrogation
Rights.
So long as any Obligations remain unpaid, no Guarantor shall take any
action of any kind to enforce any of its Subrogation Rights, and no Guarantor
shall receive or accept from any Person or Persons any payments or other
distributions in respect of any of its Subrogation Rights. Should any payment on
account of any Subrogation Rights be received by any Guarantor, such payment
shall be delivered by such Guarantor forthwith to the Agent in the form received
by such Guarantor, except for the addition of any endorsement or assignment
necessary to effect transfer of all rights therein to the Agent, the Issuing
Bank and the Lenders. Until so delivered, each such payment shall be held by
such Guarantor in trust for the ratable benefit of the Agent, the Issuing Bank
and the Lenders and shall not be commingled with any other funds of any
Guarantor.
Section 6.7. LIMITATION ON OBLIGATIONS. It is the intention and agreement
of each of the Guarantors, the Agent, the Issuing Bank and the Lenders that the
obligations of each Guarantor under the provisions of this ARTICLE VI shall be
in, but not in excess of, the maximum amount permitted by applicable law.
Accordingly, notwithstanding anything to the contrary contained in this ARTICLE
VI, the obligations of each Guarantor under this ARTICLE VI shall be reduced to
that amount which, after giving effect thereto,
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would not render such Guarantor insolvent or unable to pay its debts and
liabilities as they mature or leave such Guarantor with unreasonably small
capital or otherwise exceed the maximum amount permitted under any federal or
state fraudulent conveyance law applicable to this ARTICLE VI. This Section 6.7
is intended solely to preserve the rights of the Agent, the Issuing Bank and the
Lenders under this Agreement to the maximum extent permitted by applicable law
and no Guarantor nor any other person shall have any right under this Section
6.7 that it would not otherwise have under applicable law.
ARTICLE VII
DELIVERY OF FINANCIAL REPORTS, DOCUMENTS
AND OTHER INFORMATION
The undersigned Principal Companies agree with the Agent and each of the
Lenders that, until all Commitments have been terminated, all Letters of Credit
have been fully drawn or have terminated or expired and all Obligations have
been paid in cash in full, the Principal Companies shall deliver to each Lender:
Section 7.1. ANNUAL FINANCIAL STATEMENTS. Annually, as soon as available,
but in any event within ninety (90) days after the last day of each of the
Borrower's fiscal years, consolidated and consolidating balance sheets of the
Borrower and its Subsidiaries (and, separately stated, of the Borrower and its
Restricted Subsidiaries) at such last day of such fiscal year, and consolidated
and consolidating statements of operations and cash flow of the Borrower and its
Subsidiaries (and, separately stated, of the Borrower and its Restricted
Subsidiaries) for such fiscal year, each prepared in accordance with GAAP
consistently applied, in reasonable detail, and, as to the consolidated
statements, certified without qualification by Ernst & Young or another firm of
independent certified public accountants satisfactory to the Agent, or
certified, as to the consolidating statements, by the Chief Financial Officer,
as fairly presenting the financial position and the results of operations of the
Borrower and its Subsidiaries (or of the Borrower and its Restricted
Subsidiaries, as the case may be) as at and for the year ending on its date and
as having been prepared in accordance with GAAP.
Section 7.2. QUARTERLY FINANCIAL STATEMENTS. As soon as available, but in
any event within sixty (60) days after the end of each of the Borrower's fiscal
quarters, a consolidated and consolidating balance sheet of the Borrower and its
Subsidiaries (and, separately stated, of the Borrower and its Restricted
Subsidiaries) as of the last day of such quarter and consolidated and
consolidating statements of operations and cash flow of the Borrower and its
Subsidiaries (and, separately stated, of the Borrower and its Restricted
Subsidiaries) for such quarter, together with comparative consolidated and
consolidating figures for the immediately preceding fiscal quarter of the
Borrower, all in reasonable detail, each such statement to be certified in a
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certificate of the Chief Financial Officer as accurately representing the
financial position and the results of operations of the Borrower and its
Subsidiaries (or of the Borrower and its Restricted Subsidiaries, as the case
may be) as at its date and for such quarter and for the portion of the fiscal
year then ended and as having been prepared in accordance with GAAP consistently
applied (subject to year-end audit adjustments).
Section 7.3. COMPLIANCE INFORMATION. Concurrently with any delivery of
financial statements under Sections 7.1 or 7.2, a certificate, in form and
substance reasonably satisfactory to the Agent, of the Chief Financial Officer
of the Borrower (i) certifying that as of the effective date of the certificate,
no Default or Event of Default is continuing or, if a Default or Event of
Default is continuing, specifying the nature and the extent thereof and any
corrective action taken or proposed to be taken with respect thereto, (ii)
setting forth computations in reasonable detail (A) demonstrating compliance
with the covenants set forth in ARTICLE X and Sections 9.1, 9.3 (with respect to
Permitted Sales), 9.4(i) and 9.5 and (B) in the case of any certificate
delivered with Financial Statements under Section 7.1, calculating Excess Cash
Flow for the fiscal year then ended (iii) certifying that the representations
and warranties contained in ARTICLE IV hereof are true in all material respects
and with the same effect as though such representations and warranties were made
on the date of such certificate, except for changes which are not prohibited
hereunder or which have been consented to by the Required Lenders and none of
which, either singly or in the aggregate, have had a Material Adverse Effect.
Section 7.4. ACCOUNTANTS' REPORTS. Promptly upon receipt thereof, copies
of all management letters and other material reports submitted to any Principal
Company by its independent accountants in connection with any annual or interim
audit or review of the books of any Principal Company made by such accountants.
Section 7.5. COPIES OF DOCUMENTS. Promptly upon their becoming available,
copies of any: (i) financial statements, projections, non-routine reports,
notices (other than routine correspondence), requests for waivers and proxy
statements, in each case, delivered by any Principal Company to any lending
holder of Indebtedness for Borrowed Money other than the Lenders; (ii)
correspondence or notices received by any Principal Company from any
Governmental Authority which regulates the operations of the Principal
Companies, including the FCC, relating to an actual or threatened change or
development which could be materially adverse to the Principal Companies or any
Station, and all applications for renewals of any of the FCC Licenses; (iii)
registration statements, prospectuses and any amendments and supplements
thereto, and any regular and periodic reports (including reports on Form 10K,
Form 10Q or Form 8K), if any, filed by any Principal Company with any securities
exchange or with the Securities and Exchange Commission or any Governmental
Authority succeeding to any or all of the functions of the said Commission
(collectively, the "PUBLIC FILINGS"); (iv) letters of comment or correspondence
sent to any Principal Company by any such securities
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exchange or such Commission in relation to such Principal Company and its
affairs; (v) written reports submitted by any Principal Company or by its
independent accountants in connection with any annual or interim audit of the
books of such Principal Company made by such accountants; (vi) any appraisals
received by such Principal Companies with respect to the properties or assets of
such Principal Company; and (vii) any report, document, notices or proxy
statement sent by any Principal Company to any of its stockholders.
Section 7.6. ANNUAL BUDGET. Annually, as soon as available but in any
event within thirty (30) days after the last day of each of the Borrower's
fiscal years, a summary of business plans in the form of consolidated and
consolidating (on a station-by-station and market-by-market basis) financial
operating projections for the Borrower and its Restricted Subsidiaries for the
upcoming year, including (a) balance sheets, and (b) statements of operations
and cash flows (indicating projected revenues and expenses), each prepared for
the upcoming fiscal year on a monthly basis (together with reasonable
assumptions and explanations attached thereto), all in form and substance
satisfactory to the Required Lenders.
Section 7.7. ADDITIONAL INFORMATION. Such other information regarding the
business, affairs and condition of the Borrower and its Subsidiaries as the
Agent or the Required Lenders may from time to time reasonably request,
including monthly financial statements.
ARTICLE VIII
AFFIRMATIVE COVENANTS
The undersigned Principal Companies agree with the Agent and each Lender
that, until all Commitments have been terminated, all Letters of Credit have
been fully drawn or have terminated or expired and all Obligations have been
paid in cash in full, each Principal Company shall:
Section 8.1. PAYMENT AND PERFORMANCE OF OBLIGATIONS. Pay its Indebtedness
and pay and perform its Contractual Obligations promptly and in accordance with
their respective terms, including all Taxes, assessments and governmental
charges upon its income or profits or in respect of its Assets and all lawful
claims for labor, material and supplies or otherwise which, if unpaid, might
give rise to a Lien upon its Assets, unless and to the extent that such
Indebtedness or Contractual Obligations are being contested in good faith and by
appropriate proceedings and that proper and adequate reserves relating thereto
are established in accordance with GAAP by the appropriate Principal Companies
and then only to the extent that a bond is filed in cases where the filing of a
bond is necessary to avoid the creation of a Lien against any of its properties.
Nothing in this Section 8.1 shall (i) relieve any Principal Company from its
absolute and unconditional obligation to pay and perform all Obligations of such
Principal Company promptly and in accordance with their
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respective terms, or (ii) require any Principal Company to pay or perform any
obligations in respect of Subordinated Debt if prohibited by any subordination
provisions applicable thereto.
Section 8.2. CONDUCT OF BUSINESS. Do, or cause to be done, all things
reasonably necessary to (i) preserve and keep in full force and effect its
corporate existence and good standing under the laws of its jurisdiction of
incorporation or organization, (ii) obtain, maintain, preserve, renew, extend
and keep in full force and effect all material permits, rights, licenses,
franchises, authorizations, patents, Trademarks, Copyrights and privileges
reasonably necessary for the proper conduct of its business, including FCC
Licenses (except for (a) FCC licenses for Secondary Stations and the license for
KNAL (AM), Victoria, Texas, which the Principal Companies may donate to Bible
Broadcasting Network, Inc. and (b) Sales of Assets permitted by SECTION 9.3),
(iii) conduct and operate its business substantially in the manner in which it
is presently conducted and operated, (iv) comply in all material respects with
all Requirements of Law, including the Communications Act, (v) comply with all
its Governing Documents, (vi) maintain its qualification to do business in each
jurisdiction in which the failure to do so would have a Material Adverse Effect,
(vii) maintain and preserve all the remainder of its Assets and property, and
all improvements thereon, in use or useful in the conduct of its business and
keep the same in reasonable repair, working order and condition as the same is
now or may hereafter be put (taking into consideration ordinary wear and tear),
damage from casualty expressly not excepted, and from time to time make, or
cause to be made, all needful and proper repairs, renewals and replacements,
betterments, additions and improvements thereto consistent with industry
practices, so that the business carried on in connection therewith may be
properly and advantageously conducted at all times, such repairs, renewals and
replacements, betterments, additions and improvements to be conducted in
accordance with the terms of Section 8.5, (viii) transact business in such names
as such Principal Company has from time to time used in conducting its business,
and (ix) maintain its executive offices and principal place of business at the
locations set forth on SCHEDULE 8.2 hereto, or at such other place in the United
States of America as the Borrower shall designate upon written notice to the
Agent. Notwithstanding anything in this Section 8.1 or elsewhere in the
Agreement to the contrary, the Principal Companies will not, and will not cause
or permit any Station, to:
(a) enter into any so called "local market agreements" or any other
arrangements with any other Communication System (other than another Station)
whereby the parties agree to function cooperatively in terms of programming,
advertising, sales, management, consulting or similar services, EXCEPT for (i)
any such agreements or arrangements existing on the date hereof and described in
SCHEDULE 8.2(A) or (ii) any Permitted LMA Transactions; or
(b) enter into any so-called "time brokerage agreements" or any other
agreements or arrangements under which any Station shall (i) sell broadcast
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time to any other Communication System (other than another Station) which
programs such broadcast time and sells its own commercial advertising
announcements during such broadcast time or (ii) purchase broadcast time on any
other Communication System (other than another Station) for the purpose of
programming such broadcast time and selling its commercial advertisements during
such time, EXCEPT for (i) such agreements or arrangements existing on the date
hereof and described on SCHEDULE 8.2(b) hereto or (ii) Permitted LMA
Transactions; or
(c) otherwise enter into any oral or written agreement with any other
Person (other than one of the Principal Companies) pursuant to which any
employee or any Assets owned by any Principal Company would be used by or shared
with any other Person (other than one of the Principal Companies).
Section 8.3. BOOKS AND RECORDS. Keep proper books of record and account in
a manner reasonably satisfactory to the Agent in which full, true and correct
entries shall be made in accordance with GAAP and maintain adequate accounts and
reserves for all Taxes (including income taxes), all depreciation, depletion,
obsolescence and amortization of its properties, all other contingencies, and
all other proper reserves. Maintain a fiscal year ending December 31 of each
year.
Section 8.4. INSPECTIONS AND AUDITS. Permit any officer or employee
designated by the Agent or any Lender to visit and inspect any of its properties
and to examine and audit its books and discuss the affairs, finances and
accounts of any Principal Company with its officers, all at such reasonable
times, upon reasonable notice, in a reasonable manner and as often as the Agent
or the Required Lenders may reasonably request. The Principal Companies shall
pay all reasonable out-of-pocket expenses incurred by any officers or employees
of the Agent or any Lender in connection with any such visitation, audits and
inspection.
Section 8.5. INSURANCE.
(a) Maintain insurance covering, without limitation, fire, public
liability, property damage, product liability workers' compensation and
insurance on all Assets of each Principal Company, all in amounts customary for
the industry and under policies issued by financially sound and reputable
insurers satisfactory to the Agent and, with respect to any such insurance
policies covering all or any portion of the Collateral, with a lender's loss
payable clause in favor of the Collateral Trustee for the benefit of the
Lenders, as their interests may appear, and naming the Agent as additional
insured. All such policies of insurance shall be endorsed or otherwise amended
to include a lender's loss payable endorsement, in form and substance reasonably
satisfactory to the Collateral Trustee, which shall provide that, from and after
the date, if any, on which the insurance carrier receives written notice from
the Collateral Trustee that an Event of Default (a "DEFAULT NOTICE") has
occurred, all proceeds otherwise payable to any Principal Company under such
policies
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shall be payable directly to the Collateral Trustee. Such endorsement or an
independent instrument furnished to the Collateral Trustee shall provide that
the insurance carriers will give the Collateral Trustee at least 30 days' prior
written notice before any such policy or policies of insurance shall be altered
or canceled and that no act or default of any Principal Company or any other
Person shall affect the right of the Collateral Trustee to recover under such
policy or policies of insurance in case of loss or damage.
(b) Each of the Principal Companies irrevocably makes, constitutes, and
appoints the Collateral Trustee (and all officers, employees, or agents
designated by the Collateral Trustee) as such Principal Company's true and
lawful attorney (and agent-in-fact) effective upon the giving of a Default
Notice and the continuance of an Event of Default for the purpose of making,
settling, and adjusting claims under policies of insurance, endorsing the name
of such Principal Company on any check, draft, instrument or other item or
payment for the proceeds of such policies of insurance and for making all
determinations and decisions with respect thereto. In the event that any
Principal Company at any time or times shall fail to obtain or maintain any of
the policies of insurance required hereby or to pay any premium in whole or part
relating thereto, the Collateral Trustee may, without waiving or releasing any
obligation or liability of such Principal Company hereunder or any Event of
Default, in the Collateral Trustee's sole discretion, obtain and maintain such
policies of insurance and pay such premiums and take any other actions with
respect thereto as the Collateral Trustee deems advisable. All such sums so
disbursed by the Collateral Trustee, including reasonable attorneys' fees, court
costs, expenses and other charges relating thereto, shall be payable, upon
demand, by such Principal Company to the Collateral Trustee and shall be
additional Obligations hereunder.
Section 8.6. NOTICE OF DEFAULTS, LITIGATION; ETC. Deliver to the Agent and
the Lenders prompt written notice of the following:
(a) Any Default or Event of Default, specifying the nature and extent
thereof and the corrective action proposed to be taken in respect thereto.
(b) The filing or commencement of or written notice of intention to file
or commence any action, suit or proceeding, whether at law or at equity or by or
before any Governmental Authority, by or against or affecting any Principal
Company, that, if determined adversely to such Principal Company, could result
in a Default or an Event of Default described in Section 11.1(i) hereof.
(c) Any development that has resulted in, or could reasonably be
anticipated to result in, a Material Adverse Effect.
(d) Any termination, amendment, modification or supplement of any
Governing Document of any Principal Company or any Ancillary Document or any
waiver under any Ancillary Document, and deliver to the Agent copies of
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any such termination, amendment, modification, supplement, or waiver (to the
extent the same is reflected in any writing).
Section 8.7. ERISA NOTICES.
(a) Promptly notify the Agent in writing of the occurrence of any ERISA
Reportable Event, if a notice of such ERISA Reportable Event is required under
ERISA to be delivered to the PBGC within thirty (30) days after the occurrence
thereof, together with a description of such ERISA Reportable Event and a
statement of the action the Principal Companies intends to take with respect
thereto, together with a copy of any notice thereof given to the PBGC.
(b) Promptly upon filing the same with the Department of Labor or Internal
Revenue Service, furnish to the Agent a copy of the most recent actuarial
statement required to be submitted under ss.103(d) of ERISA and Annual Report,
Form 5500, with all required attachments, in respect of each Guaranteed Pension
Plan; and
(c) Promptly upon receipt or dispatch, furnish to the Agent any notice,
report or demand sent or received in respect of a Guaranteed Pension Plan under
secs.302, 4041, 4042, 4043, 4063, 4065, 4066 and 4068 of ERISA, or in respect
of a Multiemployer Plan, under secs.4041A, 4202, 4219, 4242, or 4245 of ERISA.
Section 8.8. NO TERMINATION OF LOAN DOCUMENTS, ETC. Take or cause to be
taken, promptly and without expense to the Agent or the Lenders, all such action
as may be required to prevent, and refrain from taking any action that might
cause, the termination, cancellation, amendment, rescission or default of any
provision of any of the Loan Documents other than in accordance with the terms
thereof.
Section 8.9. ENVIRONMENTAL LAWS.
(a) Comply with, and use its best efforts to insure compliance by all
Subsidiaries, tenants and subtenants, if any, with, all Environmental Laws and
obtain and comply with and maintain, and use its best efforts to insure that all
tenants and subtenants obtain and comply with and maintain, any and all
licenses, approvals, registrations or permits required by any Environmental
Laws, except to the extent that the failure to do so could not have a Material
Adverse Effect.
(b) Conduct and complete or cause to be conducted and completed, with
respect to its Assets and those of its Subsidiaries, all investigations,
studies, sampling and testing, and all remedial, removal and other actions
required under any Environmental Laws and promptly comply with, and cause its
Subsidiaries to comply with, all lawful orders and directives of all
Governmental Authorities respecting Environmental Laws, except to the extent
that the same are being contested in good faith by appropriate proceedings and
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the pendency of such proceedings could not reasonably be expected to have a
Material Adverse Effect or result in a Lien upon any real property of any of the
Principal Companies.
(c) Promptly notify the Agent in writing if any Borrower Affiliated
Company receives: (i) any notice of any violation or administrative or judicial
complaint or order having been filed or about to be filed against any Borrower
Affiliated Company alleging violations of any Environmental Law, or (ii) any
notice from any Governmental Authority or any other Person alleging that any
Borrower Affiliated is or may be subject to any Environmental Liability; and
promptly upon receipt thereof, provide the Agent with a copy of such notice
together with a statement of the action the Principal Companies intend to take
with respect thereto.
Section 8.10. [Intentionally Deleted].
Section 8.11. GOVERNMENTAL APPROVALS. Obtain all such approvals or
consents from, and take all such other actions with respect to, any Governmental
Authority as may be required for the execution, delivery and performance of the
Loan Documents and the Ancillary Documents, and duly perform and comply with all
of the terms and conditions of all approvals or consents so obtained.
Section 8.12. COLLATERAL FOR LOANS.
(a) Cause all outstanding shares of the Capital Stock of each direct
Restricted Subsidiary of any Principal Company to be pledged to the Collateral
Trustee in accordance with the provisions of the Stock Pledge Agreements at all
times from and after the effectiveness of this Agreement.
(b) From time to time, at its own cost and expense, promptly secure or
cause to be secured the Obligations by creating or causing to be created in
favor of the Collateral Trustee for the benefit of the Secured Creditors
perfected security interests and liens (subject only to Liens permitted by
SECTION 9.2) with respect to all Assets of the Principal Companies, now owned or
hereafter acquired (other than Assets set forth on SCHEDULE 4.4(a)), to the
extent the Agent or the Required Lenders shall so request. All such security
interests will be created under security agreements, mortgages and other
instruments and documents in form and substance satisfactory to the Agent, and
the Borrower shall deliver to the Collateral Trustee (with copies to the Agent)
all such instruments and documents (including legal opinions, title insurance
policies and lien searches) as the Agent or the Required Lenders shall
reasonably request to evidence the satisfaction of the obligations created by
this SECTION 8.12. The Borrower agrees to provide such evidence as the Agent or
the Required Lenders shall request as to the perfection and priority of such
security interests (subject only to Liens permitted by SECTION 9.2). So long as
no Event of Default is continuing, no Intellectual Property Security Agreement
shall be required to be recorded in the United States Patent and Trademark or
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the United States Copyright Office if such Intellectual Property Security
Agreement covers no Material Intellectual Property.
Section 8.13. DIVIDENDS. In the case of the Borrower, permit its
Restricted Subsidiaries to pay cash dividends or make advances or repay
advances, and cause its Restricted Subsidiaries to pay such cash dividends or
make such advances or repay such advances, to the extent required to ensure that
the Borrower can pay its monetary Obligations as the same become due.
Section 8.14. APPRAISALS. If any Lender determines in good faith that it
is required, by Applicable Law or by the Comptroller of Currency or any other
Government Authority, to obtain appraisals as to the market value of any real
property constituting Collateral, obtain such appraisals, at the sole cost and
expense of the Principal Companies. Such appraisals shall conform in all
respects with the requirements contained in 12 U.S.C. ss.93a and Title XI of the
Financial Institutions, Reform, Recovery and Enforcement Act of 1989 and the
corresponding regulations under 12 C.F.R. 34.41 ET SEQ (1990) and shall be
consistent with the Comptroller of the Currency's Guidelines for Real Estate
Appraisal Policies and Review Procedures (as such Requirements of Law or such
policies and procedures may be amended, supplemented, restated, or otherwise
modified from time to time).
Section 8.15. PERMITTED ACQUISITIONS.
(a) In the case of any personal property or fixtures (other than Assets
set forth on SCHEDULE 4.4(a)) acquired by any Principal Company after the
effectiveness hereof in connection with a Permitted Acquisition (i) pledge such
personal property or fixtures (to the maximum extent permitted by applicable
law) to the Collateral Trustee as security for the payment in full of all the
Obligations, pursuant to documentation satisfactory to the Agent (but in any
event not materially more restrictive or burdensome than the Security Documents
in effect as of the effectiveness hereof), within ten (10) days of such
Principal Company acquiring such personal property or fixtures and (ii) perform
any filings, recordings or other actions necessary in the reasonable judgment of
the Agent to create in favor of the Collateral Trustee a perfected
first-priority security interest in all such personal property or fixtures
subject only to Liens permitted by Section 9.2 within ten (10) days of such
Principal Company acquiring such personal property or fixtures. If any such
personal property includes Trademarks, patents or Copyrights, then so long as no
Event of Default is continuing, no Intellectual Property Security Agreement
shall be required to be recorded in the United States Patent and Trademark or
the United States Copyright Office if such Intellectual Property Security
Agreement covers no Material Intellectual Property.
(b) In the case of any Material Real Property acquired by any Principal
Company after the effectiveness hereof in connection with a Permitted
Acquisition, if the Required Lenders so request (i) execute and deliver to the
Collateral Trustee, within fifteen (15) days after such Principal Company takes
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or receives possession of such Material Real Property, a mortgage granting to
the Collateral Trustee a perfected Lien on such Material Real Property and (ii)
deliver to the Collateral Trustee, within thirty (30) days after such Principal
Company takes or receives possession of such Material Real Property, ALTA
mortgage policies of title insurance covering all such Material Real Property
and issued by title insurance companies satisfactory to the Agent, with proof of
payment of all fees and premiums of such policy; PROVIDED, FURTHER that the
amount, form and substance of each such mortgage title insurance policy shall be
satisfactory to the Agent and each such title insurance policy shall contain no
Schedule B standard preprinted exceptions (other than for taxes not yet due and
payable and matters which would be disclosed by a current survey of the
property) and shall contain no exceptions for coverage other than for Liens
which the Agent reasonably determines are Permitted Liens.
(c) Deliver to the Agent and the Agent's Special Counsel within ten (10)
days after the date of any Permitted Acquisition, true, complete and correct
copies of each instrument of transfer, officer's certificate, legal opinion and
other instrument or agreement executed and delivered by the applicable seller
and/or the applicable Principal Company in connection with such Permitted
Acquisition.
Section 8.16. FURTHER ASSURANCES. Cooperate with the Agent and the Lenders
and take such action and execute such further instruments and documents as the
Agent shall reasonably request to further and more perfectly effect the purposes
of this Agreement and the other Loan Documents.
ARTICLE IX
NEGATIVE COVENANTS
The undersigned Principal Companies agree with the Agent and each of the
Lenders that, until all Commitments have been terminated, all Letters of Credit
have been fully drawn or have terminated or expired and all Obligations have
been paid in cash in full, the Principal Companies shall not:
Section 9.1. INDEBTEDNESS. Create, incur, assume or permit to exist any
Indebtedness to any Person, except:
(a) the Obligations,
(b) Taxes, assessments and governmental charges, non-interest bearing
accounts payable and accrued liabilities, in any case not more than 120 days
past due from the original due date thereof (except any such amounts that are
not required to be paid in accordance with Section 8.1 or that are described on
SCHEDULE 4.11), and non-interest bearing deferred liabilities other than
Indebtedness for Borrowed Money (e.g., deferred
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compensation and deferred taxes), in each case incurred and continuing in the
ordinary course of business;
(c) Indebtedness consisting of purchase money debt and Capitalized Lease
Obligations in a combined aggregate principal amount not exceeding at any time
$3,000,000;
(d) Subordinated Debt;
(e) Indebtedness of any Principal Company to any other Principal Company;
(f) Indebtedness of the Principal Companies in respect of endorsements of
negotiable instruments for collection in the ordinary course of business;
(g) Indebtedness of the Borrower in respect of Guaranties of Indebtedness
of any of the Restricted Subsidiaries;
(h) Indebtedness of Saga Broadcast in respect of Guaranties of
Indebtedness of any of the Restricted Subsidiaries; and
(i) Indebtedness described on SCHEDULE 9.1(i) annexed hereto.
Section 9.2. LIENS. Create, incur, assume or permit to exist any Lien on
any of its Assets, now owned or hereafter acquired, except:
(a) Liens created by the Security Documents;
(b) Permitted Liens;
(c) any Lien existing on any Asset prior to the acquisition thereof by any
Principal Company; PROVIDED that (i) such Lien is not created in contemplation
of or in connection with such acquisition; (ii) such Lien does not apply to any
other property or Assets of any Principal Company; (iii) such acquisition is
permitted by this Agreement, and (iv) all Indebtedness secured by such Lien is
permitted by this Agreement;
(d) (i) purchase money mortgages or security interests, conditional sale
arrangements and other similar security interests, in real property,
improvements thereto, equipment or motor vehicles acquired (or, in the case of
improvements, constructed) by any Principal Company (hereinafter referred to
individually as a "PURCHASE MONEY SECURITY INTEREST") with proceeds of
Indebtedness permitted by Subsection 9.1(c) and (ii) interests of lessors under
Capitalized Leases entered into by any Principal Company and permitted by
Subsection 9.1(c); provided, that with respect to any Purchase Money Security
Interest:
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(A) the transaction in which any Purchase Money Security Interest is
proposed to be created shall not be prohibited by this Agreement;
(B) any Purchase Money Security Interest shall attach only to the
Asset acquired (or constructed) and shall not extend to or cover any other
Asset of any Principal Company; and
(C) the Indebtedness secured by any Purchase Money Security Interest
shall not exceed the lesser of the cost or fair market value of the Asset
acquired (or constructed) and shall not be renewed, extended or repaid
from the proceeds of any borrowing by any Principal Company.
(e) Liens consisting of deposits made by any Principal Company to secure
performance of its obligations in connection with Permitted Acquisitions;
(f) Liens on Assets of the Principal Companies existing on the date
hereof and described in SCHEDULE 9.2; PROVIDED that such Liens shall secure only
those obligations which they secure on the date hereof;
(g) Liens on amounts held in a post-closing escrow account securing
indemnity obligations in connection with a Sale of Assets permitted hereunder;
and
(h) Liens on Investments permitted by SUBSECTION 9.4(i).
Section 9.3. MERGERS, CONSOLIDATIONS, SALES OF ASSETS.
(a) Merge into or consolidate with any other Person, or permit any other
Person to merge into or consolidate with it, or engage in any Sale of any of its
Assets; EXCEPT THAT, so long as no Default or Event of Default is continuing or
would exist after giving effect thereto, the following shall be permitted:
(i) (A) any merger of any wholly-owned Restricted Subsidiary of the
Borrower with and into the Borrower or any other wholly-owned Restricted
Subsidiary of the Borrower or (B) any sale, transfer or other disposition
by any wholly-owned Restricted Subsidiary of the Borrower of any Assets to
the Borrower or any other wholly-owned Restricted Subsidiary of the
Borrower; PROVIDED, that (1) the Agent is satisfied that none of the
Collateral Trustee's Liens on the Assets of the Borrower or any Restricted
Subsidiary would become impaired, unperfected or unenforceable in any
respect, and (2) the Agent is satisfied that all appropriate consents and
approvals of any Governmental Authorities (including the FCC) have been
obtained, and copies of all such consents and approvals have been
delivered to the Agent;
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(ii) any Permitted Sale; and
(iii) any other sale of any Assets by any Principal Company;
provided, that:
(A) the total consideration (taking appropriate account of any
tax benefits associated with any sale in which such Principal Company
obtains tax certificates issued by the FCC) payable to or receivable by
the Principal Companies in connection with such sale (1) is an amount not
less than the fair value of the Assets sold and (2) consists of at least
90% cash which is (x) payable at the closing of such sale or (y) held in a
post-closing escrow account as security for indemnity obligations;
(B) the aggregate annual Consolidated EBITDA attributable to all
Assets sold by the Principal Companies during any Reference Period ending
after the Effective Date (determined separately for each sale of Assets
based upon Consolidated EBITDA attributable to such Assets for the
Reference Period ending most recently prior to the date of sale) shall not
exceed ten percent (10%) of the Consolidated EBITDA of the Principal
Companies for such Reference Period (determined without regard to any
sales of Assets during such Reference Period); and
(C) the aggregate annual Consolidated EBITDA attributable to all
Assets sold by the Principal Companies during the period commencing on the
Effective Date and ending on the last day of any Reference Period ending
thereafter (determined separately for each sale of Assets based upon
Consolidated EBITDA attributable to such Assets for the Reference Period
ending most recently prior to the date of sale) shall not exceed
twenty-five percent (25%) of the Consolidated EBITDA of the Principal
Companies for such Reference Period (determined without regard to any
sales of Assets during such Reference Period).
(b) Change the corporate structure or organization of the Principal
Companies from that set forth in SCHEDULE 9.3, PROVIDED, HOWEVER, that Principal
Company may (x) make a Permitted Acquisition, and (y) form one or more
wholly-owned Restricted Subsidiaries so long as:
(i) the Borrower or such Restricted Subsidiary shall notify the
Agent and the Collateral Trustee at least ten (10) days prior to the
formation or acquisition of such Restricted Subsidiary;
(ii) each such new Restricted Subsidiary executes and delivers to
the Agent and the Lenders (A) an accession agreement, in form and
substance satisfactory to the Agent, pursuant to which such Restricted
Subsidiary (1) becomes a party to this Agreement as a Principal Company
and as a Guarantor, becomes a party to the Borrower Subsidiary Security
Agreement as a
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"Borrower Subsidiary", becomes a party to the Indemnity, Contribution and
Subrogation Agreement as a "Borrower Affiliated Company", and becomes a
party to any other Loan Document as the Agent may reasonably request, and
(2) agrees to perform and observe all of the obligations and covenants
(including all obligations and covenants contained in ARTICLE VI hereof)
of a Principal Company and a Guarantor hereunder, of a "Borrower
Subsidiary" under the Borrower Subsidiary Security Agreement, of a
"Borrower Affiliated Company" under the Indemnity, Contribution and
Subrogation Agreement, and of the appropriate party under any other Loan
Document to which it becomes a party and (B) a Borrower Subsidiary
Trademark Security Agreement, if applicable;
(iii) all of the outstanding shares of capital stock of such new
Restricted Subsidiary shall be pledged to the Collateral Trustee, for the
ratable benefit of the Agent and the Lenders, pursuant to a stock pledge
agreement substantially in the form of the Borrower Stock Pledge
Agreement;
(iv) such new Restricted Subsidiary shall otherwise grant a
security interest in all of its Assets of the type described in the
Borrower Subsidiary Security Agreement to the Collateral Trustee as
security for all the Obligations and shall make all filings, recordings
and take such other actions (including the filing of financing statements
and the filing of Intellectual Property Security Agreements, in form and
substance satisfactory to the Agent, in the United States Patent and
Trademark Office or the United States Copyright Office with respect to any
Material Intellectual Property) required by the Agent or the Collateral
Trustee in order to create, in favor of the Collateral Trustee, a
perfected first-priority Lien on all of such Assets of the new Restricted
Subsidiary (other than Assets of the type listed on SCHEDULE 4.4(a)) and
all of the Capital Stock of such new Restricted Subsidiary; and
(v) such new Restricted Subsidiary shall grant a security interest
in and mortgage on its owned Material Real Property pursuant to a mortgage
on such Assets in form and substance satisfactory to the Agent and the
Collateral Trustee, which mortgage shall be filed of record promptly after
such new Restricted Subsidiary is formed and ALTA mortgagee policies of
title insurance covering such Material Real Property and issued by title
insurance companies satisfactory to the Agent, with proof of payment of
all fees and premiums of such policy; provided, further that the amount,
form and substance of each such mortgage title insurance policy shall be
satisfactory to the Agent and each such title insurance policy shall
contain no Schedule D preprinted exceptions (other than for taxes not yet
due and payable and matters which would be disclosed by a current survey
of the property) and shall contain no exceptions for coverage other than
for Liens which the Agent reasonably determines are permitted liens; and
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(c) After consummation of the KAVU-TV Acquisition, the transfer of the
assets of radio station KNAL (AM), licensed to Victoria, Texas, by Saga
Broadcast to Bible Broadcasting Network, Inc., pursuant to that certain Donation
Agreement dated as of September 4, 1998.
(z) form one or more Unrestricted Subsidiaries, so long as the Principal
Companies shall have complied with the provisions of SECTION 1.3.
Section 9.4. INVESTMENTS. Make or suffer to exist or to remain outstanding
any Investment, except:
(a) Investments in:
(i) marketable direct obligations of, or obligations the principal
of and interest on which are unconditionally guaranteed by, the United
States (or by any agency thereof to the extent such obligations are backed
by the full faith and credit of the United States), in each case maturing
within 90 days from the date of acquisition thereof;
(ii) securities commonly known as "commercial paper" issued by a
corporation organized and existing under the laws of the United States or
any state thereof maturing within 90 days from the date of acquisition
thereof and having, at such date of acquisition, the highest credit rating
obtainable from Standard & Poor's Corporation or from Xxxxx'x Investors
Service, Inc.;
(iii) certificates of deposit, banker's acceptances and time
deposits maturing within 90 days from the date of acquisition thereof
issued or guaranteed by or placed with, and demand deposit accounts or
money market deposit accounts issued or offered by, any commercial bank
organized under the laws of the United States of America or any state
thereof, but only so long as such commercial bank is a Lender or has a
combined capital and surplus and undivided profits of not less than
$500,000,000, or has a credit rating of "A" or better from Standard &
Poor's Corporation or from Xxxxx'x Investors Service, Inc.;
(iv) marketable direct obligations of any state of the United
States or any political subdivision thereof maturing within 90 days from
the date of acquisition thereof and having a credit rating of "A" or
better from Standard & Poor's Corporation or from Xxxxx'x Investors
Service, Inc.; and
(v) BankBoston's 1784 money market fund and in other overnight
investments customarily provided by BankBoston to its corporate customers;
and
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(b) Investments in the form of loans to employees of the Principal
Companies (other than Christian), provided that the outstanding principal amount
of all such loans to any one employee shall at no time exceed $100,000 and that
the aggregate outstanding principal amount of all such loans shall at no time
exceed $300,000, and no such loan shall be made if, on the date of the proposed
loan, any Default or Event of Default exists or would exist after giving effect
to the making of any such loan;
(c) Investments of any Principal Company in any other Principal Company;
(d) Permitted Acquisitions;
(e) Investments consisting of loans evidenced by the Christian Note and
interest accrued thereon;
(f) Investments in the form of deposits securing performance of any
Principal Company's obligations in connection with a Permitted Acquisition;
(g) Investments in the form of promissory notes issued to any Principal
Company in a sale of Assets permitted by SECTION 9.3(a)(iii); representing the
non-cash portion of the consideration received by the Principal Companies
pursuant to such sale; PROVIDED that such notes are delivered in pledge to the
Collateral Trustee pursuant to the applicable Security Documents;
(h) Investments described in SCHEDULE 9.4 hereto; and
(i) Investments (including Investments in Unrestricted Subsidiaries) not
otherwise permitted by any of PARAGRAPHS (A) through (H) above in the Capital
Stock of any Person that owns and operates as its principal business one or more
Communications Systems or other businesses reasonably related to the radio or
television business, PROVIDED, HOWEVER, that (i) the aggregate amount of such
Investments by the Principal Companies from and after the Effective Date shall
not exceed $10,000,000 (it being understood and agreed that the designation by
the Borrower of a Subsidiary as an Unrestricted Subsidiary pursuant to SECTION
1.3 shall be deemed an Investment by the Borrower (or by one of its Restricted
Subsidiaries which is the direct parent of such Unrestricted Subsidiary) in such
Unrestricted Subsidiary at the time of such designation in an amount equal to
the aggregate amount of Investments previously made by the Borrower and its
Restricted Subsidiary in such Subsidiary prior to its designation as an
Unrestricted Subsidiary); (ii) at the time of such Investment and after giving
effect thereto, no Default Event of Default shall have occurred and be
continuing; and (iii) the Borrower shall have demonstrated to the reasonable
satisfaction of the Agent (based on, among other things, operating and financial
projections and PRO FORMA financial statements delivered to the Agent and
certified by the Chief Operating Officer) that, immediately after giving effect
to such designation, all covenants
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(including all covenants contained in ARTICLE X hereof) contained herein (A)
would have been satisfied on a PRO FORMA basis as at the end of and for the Most
Recent Reference Period had such Subsidiary been an Unrestricted Subsidiary at
all times during such period, and (B) will be satisfied on a PRO FORMA basis
through the period ending two years after the date of such designation.
The aggregate amount of an Investment described in paragraph (i) above in
any Person at any time (x) shall be equal to the aggregate amount of all cash,
plus the aggregate fair market value of all Assets, loaned, advanced,
contributed or transferred to, or otherwise invested in, such Person, and (y)
shall not be reduced by reason of any write-down or write-off of such Investment
or by reason of any dividends, distributions or payments received by any
Principal Company in respect of such Investment.
Section 9.5. RESTRICTED PAYMENTS. Make any Restricted Payments, other
than:
(a) payments of cash dividends, making of advances, and repayment of
advances, in each case by any Restricted Subsidiary of the Borrower to the
parent of such Restricted Subsidiary;
(b) if no Default or Event of Default is continuing or would exist after
giving effect thereto, the Borrower may prepay Indebtedness for Borrowed Money
permitted by Section 9.1(c) and secured by Liens permitted by Section 9.2(D) and
Capitalized Lease Obligations; and
(c) payments by the Borrower to stockholders of the Borrower in an
aggregate amount not to exceed $10,000,000 (from and after the effectiveness
hereof) to repurchase shares of Class A Common Stock of the Borrower; PROVIDED
THAT, (i) no Default or Event of Default shall be continuing on the date of the
proposed payment or would result from such payment, and (ii) prior to such
repurchase, the Borrower shall have demonstrated to the reasonable satisfaction
of the Agent (based on, among other things, operating and financial projections
and pro forma financial statements delivered to the Agent and certified by the
Chief Financial Officer) that, immediately after giving effect to such
repurchase (including the making of any Loans and the incurrence of any
Indebtedness required to finance such repurchase, all covenants (including all
covenants contained in ARTICLE X hereof) contained herein (A) would be satisfied
on a pro forma basis through the end of and for the Most Recent Reference
Period, and (B) will be satisfied on a pro forma basis through the period ending
two years after the date of such repurchase; and PROVIDED FURTHER, that the
Borrower shall immediately retire any shares of its Class A Common Stock so
repurchased.
Section 9.6. ISSUANCE OF CAPITAL STOCK. Issue any Capital Stock if (i)
such Capital Stock is not Permitted Capital Stock or (ii) the issuance of such
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Capital Stock, or the exercise or conversion thereof, would result in a Change
in Control.
Section 9.7. SALE AND LEASEBACK. Enter into any arrangement, directly or
indirectly, with any Person providing for the leasing by any Principal Company
of real or personal property which has been or is to be sold or transferred by
any Principal Company.
Section 9.8. ERISA COMPLIANCE.
(a) Engage or permit any of its Subsidiaries to engage in any "prohibited
transaction" within the meaning of ss.406 of ERISA or ss.4975 of the Code which
is not subject to an exemption under ss.408 of ERISA or ss.4975(d) of the Code
and which could result in a material liability for any Principal Company.
(b) Permit or allow any of its Subsidiaries to permit any Guaranteed
Pension Plan to incur an "accumulated funding deficiency", as such term is
defined in ss.302 of ERISA, whether or not such deficiency is or may be waived.
(c) Fail to contribute or permit any of its Subsidiaries to fail to
contribute to any Guaranteed Pension Plan to an extent which, or terminate or
permit any of its Subsidiaries to terminate any Guaranteed Pension Plan in a
manner which, could result in the imposition of a lien or encumbrance on the
assets of any Principal Company or any of its Subsidiaries pursuant to ss.302(f)
or ss.4068 of ERISA.
(d) Permit or take any action which would result in the aggregate benefit
liabilities (with the meaning of ss.4001 of ERISA) of all Guaranteed Pension
Plans exceeding the value of the aggregate assets of such Plans, disregarding
for this purpose the benefit liabilities and assets of any such Plan with assets
in excess of benefit liabilities, by more than $100,000.
Section 9.9. AMENDMENT OR TERMINATION OF DOCUMENTS.
(a) Amend or supplement any Governing Documents of any Principal Company
if the effect of such an amendment or supplementation could reasonably be
expected to impair the rights or interests of the Lenders under the Loan
Documents.
(b) Amend or supplement in any material respect or terminate or cancel any
Ancillary Document (other than any Seller Debt Document) if the effect of such
an amendment or supplementation could reasonably be expected to impair the
rights or interests of the Lenders under the Loan Documents.
(c) Amend, supplement or otherwise modify in any respect any subordinated
Debt Document if such amendment or supplementation would (i) add any
representation, covenant or agreement or event of default or make any
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representation, covenant or agreement or event of default more restrictive as to
any Principal Company, (ii) alter any applicable subordination provisions, (iii)
require any additional payment or prepayment of any principal, interest, fee or
other amount, (iv) shorten the maturity or increase the rate or amount or the
frequency of payment of any principal, interest, fee or other amount, or (v)
grant any Lien to any holder of any obligation under or in respect of any
Subordinated Debt Documents. The Principal Companies will promptly provide to
the Agent a copy of any amendment, supplement or modification whether or not
such amendment, supplement or modification shall have required the consent of
the Required Lenders.
(d) Waive, release, discharge or compromise any material obligations of
any parties other than Principal Companies under any Ancillary Documents.
Section 9.10. RESTRICTIVE AGREEMENTS. Become or remain bound by any
Contractual Obligation (other than the Loan Documents) which, directly or
indirectly, prohibits or limits, or has the effect of prohibiting or limiting,
or imposes materially adverse conditions on, (i) the incurrence of Indebtedness,
the granting of Liens or the provision of Guaranties by any Principal Company,
or (ii) the making of Distributions by any Restricted Subsidiary of the
Borrower.
Section 9.11. TRANSACTIONS WITH AFFILIATES. Except as otherwise expressly
permitted by this Agreement, directly or indirectly (i) make any Investment in
any Affiliate, (ii) sell, lease or otherwise dispose of any Assets or services
to, or purchase, lease or otherwise acquire any Assets or services from, any
Affiliate, or (iii) directly or indirectly engage in any other transaction with
or for the benefit of, or make any payment or distribution to, any Affiliate;
PROVIDED, that: (i) any employee (or former employee) of the Borrower owning any
Common Stock may serve as an employee or director of any Principal Company and
receive reasonable compensation for his services in such capacity, (ii) the
Principal Companies may perform all their respective obligations under the
Ancillary Documents in accordance with the terms thereof, and (iii) so long as
no Default or Event of Default is continuing, any Principal Company may enter
into any transaction with an Affiliate providing for the rendering or receipt of
services or the purchase, sale or lease of assets in the ordinary course of
business if the monetary or business consideration arising therefrom would be
substantially as advantageous to such Principal Company as the monetary or
business consideration which would obtain in a comparable arm's length
transaction with a Person not an Affiliate, and such transaction is accurately
reflected on the books of such Principal Company.
Section 9.12. LIMITATION ON OPERATION OF SAGA REAL ESTATE. Permit Saga
Real Estate to conduct or engage in any business or operations of any kind,
except the ownership (but not the operation), and other activities necessarily
related to such ownership, of the transmitter site at 0000 X.X. 00x Xxxxxx, Xxx
Xxxxxx, Xxxx.
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ARTICLE X
FINANCIAL COVENANTS
The Borrower agrees with the Agent and each Lender that, until all
Commitments have been terminated, all Letters of Credit have been fully drawn or
have terminated or expired and all Obligations have been paid in cash in full,
the Borrower will not cause or permit:
Section 10.1. MAXIMUM TOTAL FUNDED DEBT LEVERAGE RATIO. The Total Funded
Debt Leverage Ratio (as defined below) for any Reference Period ending during
any period identified in the table below to be greater than the ratio specified
in such table opposite such period:
Maximum Total Funded
Period Debt Leverage Ratio
------ --------------------
Effective Date - 9/29/99 5.50:1
9/30/99 - 12/30/99 5.25:1
12/31/99 - 12/30/00 5.00:1
12/31/00 - 12/30/01 4.75:1
12/31/01 - 12/30/02 4.50:1
12/31/02 - 12/30/03 4.00:1
12/31/03 - thereafter 3.50:1
As used in this SECTION 10.1, "TOTAL FUNDED DEBT LEVERAGE RATIO" means, in
relation to any Reference Period, the ratio of (i) Consolidated Total Funded
Debt at the end of such Reference Period (net of the outstanding balance at such
time of any Net Proceeds deposited in the Reinvestment Collateral Account
pursuant to SUBSECTION 2.5(f)(i)(x)(i) and then held by the Collateral Trustee
pending application to a Permitted Acquisition or as provided in SUBSECTION
2.5(h)(i)) to (ii) Consolidated EBITDA for such Reference Period.
Section 10.2. PRO FORMA FIXED CHARGES COVERAGE RATIO. The Pro Forma Fixed
Charges Coverage Ratio (as defined below) for any Reference Period to be less
than 1.10:1. As used in this SECTION 10.2, "PRO FORMA FIXED CHARGES COVERAGE
RATIO" means, in relation to any Reference Period described in the previous
sentence, the ratio of (i) Consolidated EBITDA for such Reference Period to (ii)
Pro Forma Fixed Charges for such Reference Period.
Section 10.3 MINIMUM INTEREST COVERAGE RATIO. The Interest Coverage Ratio
(as defined below), for any Reference Period ending during any period identified
in the table below to be less than the ratio specified in such table opposite
such period:
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Minimum Interest
Period Coverage Ratio
------ ---------------
Effective Date - 6/29/00 2.50:1
06/30/00 - 12/30/00 2.75:1
12/31/00 - thereafter 3.00:1
As used in this Section 10.3, "INTEREST COVERAGE RATIO" means, in relation to
any Reference Period described in the previous sentence, the ratio of (i)
Consolidated EBITDA for such Reference Period to (ii) Consolidated Total
Interest Expense for such Reference Period.
Section 10.4. GENERAL PROVISIONS RELATING TO FINANCIAL TERMS AND
COVENANTS. In the event the Borrower or any of its Subsidiaries acquires or
disposes of any Communications System or other business, the following
adjustments shall be made:
(a) CONSOLIDATED EBITDA. In determining Consolidated EBITDA for any
period, there shall be (i) included in such Consolidated EBITDA all EBITDA
attributable to any Communications System or other business acquired by (and
thereafter owned by) the Borrower or any Restricted Subsidiary during such
period as if such Communications System or other business had been acquired on
the day before the first day of such period and (ii) excluded from such
Consolidated EBITDA all EBITDA attributable to any Communications System or
other business disposed of by the Borrower or any Restricted Subsidiary during
such period as if such Communications System or other business were disposed of
on the day before the first day of such period. For purposes hereof, the EBITDA
attributable to any such acquired or disposed Communications System or other
business prior to the date of acquisition or disposition thereof shall be
determined in a manner consistent with the method for determining Consolidated
EBITDA, but on a non-consolidated basis (subject to any adjustments made
pursuant to paragraph (c) below).
(b) CONSOLIDATED TOTAL INTEREST EXPENSE. In determining Consolidated Total
Interest Expense for any period, there shall be (i) included all Consolidated
Total Interest Expense attributable to Indebtedness incurred or assumed by the
Borrower or any Restricted Subsidiaries during such period in connection with
any Permitted Acquisition as if such Indebtedness was incurred or assumed on the
day before the first day of such period and (ii) excluded all Consolidated Total
Interest Expense attributable to that portion of the principal amount of the
Loans prepaid during such period with Net Proceeds pursuant to SECTION 2.5(f) as
if such portion of the principal amount of the Loans was prepaid on the day
before the first day of such period.
(c) ADDITIONAL ADJUSTMENTS. For purposes of this SECTION 10.4, the EBITDA
attributable to any Communications System or other business acquired or disposed
of by the Borrower or any of its Restricted Subsidiaries during any period may
be adjusted to more accurately reflect the financial
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condition and results of operations of the acquired Communications System or
other business after giving effect to the acquisition as mutually determined and
agreed to by the Borrower and the Required Lenders. The Borrower and the
Required Lenders shall each use good faith efforts to mutually determine and
agree to any such adjustments. It is understood and agreed, however, that the
Required Lenders shall have no liability for failing to agree to any such
adjustments. In the case of an Acquisition by the Borrower or any of its
Restricted Subsidiaries, such adjustments may reflect any cost savings (but not
revenue enhancements) that would have been achieved if such business had been
owned by the Borrower or one of its Restricted Subsidiaries for the entire
relevant period including adjustments for excess owner's compensation, excess
rent paid to related parties, directors' fees paid to related parties and
workmen's compensation and other insurance expense in excess of that which would
have been incurred under policies of the Borrower and its Restricted
Subsidiaries existing at the time of such Acquisition.
ARTICLE XI
EVENTS OF DEFAULT; ACCELERATION
Section 11.1. EVENTS OF DEFAULT. The occurrence of any one or more of the
following events or conditions shall constitute an "EVENT OF DEFAULT":
(a) the Borrower shall fail to make any payment or mandatory prepayment of
principal on any Note or to reimburse the Issuing Bank for any Letter of Credit
Disbursement when and as the same becomes due and payable; or
(b) the Borrower shall fail to pay any interest on any Loan or Letter of
Credit Disbursement or any Fee or any other amount (other than an amount
referred to in paragraph (a) above) when and as the same shall become due and
payable, and such default shall continue unremedied for three (3) Business Days;
or
(c) any Principal Company shall fail to perform or observe any of its
agreements contained in SECTION 8.14, ARTICLES IX or X hereof; or
(d) any Principal Company shall fail to perform or observe any of its
agreements in any of the Loan Documents (other than those specified in
paragraphs (a), (b) or (c) above) and such failure shall remain unremedied upon
the earlier to occur of thirty (30) days after any executive officer of the
Borrower shall know thereof and thirty (30) days after notice thereof shall have
been given to the Borrower by the Agent; or
(e) (i) any Principal Company shall fail to pay any principal, interest or
other amounts due in respect of any Indebtedness for Borrowed Money and the
aggregate amount not paid when due, together with other such amounts
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not paid when due by any Principal Companies, exceeds $1,000,000; or (ii)
Indebtedness for Borrowed Money of any Principal Company is accelerated or
otherwise becomes due and payable prior to its stated maturity and the aggregate
amount accelerated or otherwise due and payable, together with other such
amounts of any Principal Companies accelerated or otherwise due and payable,
exceeds $1,000,000; or (iii) any holder or holders (or any agent or trustee for
any such holder or holders) of Indebtedness for Borrowed Money of any Borrower
Affiliated Company take any legal proceeding against any Principal Company to
collect such Indebtedness or to seek possession of any portion of the Collateral
by any means or to enforce any provision of any agreement or instrument
evidencing or governing Indebtedness for Borrowed Money of the Principal
Companies and such Indebtedness, together with other such Indebtedness of any
Principal Companies with respect to which such legal proceedings have been
taken, exceeds $1,000,000; or
(f) any representation or warranty made or deemed made by or on behalf of
any Principal Company in or in connection with any Loan Document or in any
report, certificate, financial statement or other instrument furnished in
connection with or pursuant to any Loan Document shall prove to have been false
or misleading in any material respect when made or deemed made; or
(g) an involuntary proceeding shall be commenced or an involuntary
petition shall be filed in a court of competent jurisdiction seeking (i) relief
in respect of any Principal Company or of a substantial part of the Assets of
any Principal Company under Title 11 of the United States Code, as now
constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) the appointment of a
receiver, trustee, custodian, sequestrator, conservator or similar official for
any Principal Company or for a substantial part of the property or assets of any
Principal Company or (iii) the winding-up or liquidation of any Principal
Company; and such proceeding or petition shall continue undismissed for sixty
(60) days or an order or decree approving or ordering any of the foregoing shall
be entered; or
(h) any Principal Company shall (i) voluntarily commence any proceeding or
file any petition seeking relief under Title 11 of the United States Code, as
now constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the
institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in (g) above, (iii) apply for
or consent to the appointment of a receiver, trustee, custodian, sequestrator,
conservator or similar official for any Principal Company or for a substantial
part of the Assets of any Principal Company, (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, (vi) become unable or
admit in writing its inability or fail generally to pay its debts as they become
due or (vii) take any action for the purpose of effecting any of the foregoing;
or
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(i) one or more judgments for the payment of money shall be rendered
against any Principal Company which, together with other such judgments against
any Principal Companies, exceed $1,000,000, and the same shall remain
undischarged, unsatisfied or unstayed or a bond sufficient to cover such
judgment shall not have been provided by the Borrower for a period of 30
consecutive days, or any action shall be legally taken by a judgment creditor to
levy upon Assets or properties of any Principal Company to enforce any such
judgment; or
(j) any Principal Company or any ERISA Affiliate incurs any liability to
the PBGC or a Guaranteed Pension Plan pursuant to Title IV of ERISA in an
aggregate amount which, together with other such liabilities of the Principal
Companies and their ERISA Affiliates, exceeds $1,000,000; any Principal Company
shall fail to make required contributions, in accordance with applicable
provisions of ERISA, to each of the Plans; any Principal Company or any ERISA
Affiliate is assessed withdrawal liability pursuant to Title IV of ERISA by a
Multiemployer Plan in an aggregate amount which, together with other such
assessed withdrawal liabilities of any Principal Companies or ERISA Afiiliates,
exceeds $1,000,000; or any of the following occurs with respect to a Guaranteed
Pension Plan: (i) an ERISA Reportable Event, provided the Required Lenders
determine in their reasonable discretion that such event reasonably could be
expected to result in liability of the Principal Companies to the PBGC or the
Plan in an aggregate amount, together with other such liabilities of the
Principal Companies, exceeds $1,000,000 and such event or events in the
circumstances occurring reasonably could constitute grounds for the termination
of such Plan by the PBGC or for the appointment by the appropriate United States
District Court of a trustee to administer such Plan; (ii) the appointment by a
United States District Court of a trustee to administer such Plan; or (iii) the
institution by the PBGC of proceedings to terminate such Plan; or
(k) any Liens granted to the Collateral Trustee for the benefit of the
Agent and the Lenders under the Security Documents on any material portion of
the Collateral shall fail to be a valid, perfected Lien, subject to no prior or
equal Lien, except as permitted by Section 9.2, or shall become otherwise
impaired or unenforceable in any material respect; or
(l) the loss, revocation or failure to file for renewal of any FCC
License; the commencement of proceedings by the FCC to suspend, revoke,
terminate or substantially and adversely modify any FCC License, which
proceedings are resolved unfavorably to the applicable Principal Company and
which resolution shall be Final; or the designation of an application for
renewal of any such FCC License for an evidentiary hearing upon issues related
to the basic qualifications of the applicable Principal Company to be an FCC
licensee which hearing is resolved unfavorably to such Principal Company and
which resolution shall be Final, which FCC License is now held or hereafter
acquired by such Principal Company and is necessary for the continued operation
of such Principal Company's business in the same manner as is being conducted
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at the time of such loss, revocation, failure to renew, commencement of
proceedings or designation for hearing; or
(m) there shall have occurred a Change in Control; or
(n) any Governmental Authority shall (i) enter a judgment, order or decree
requiring any Principal Company to divest itself of all or any substantial part
of its property or Assets, or (ii) take any action of any kind whatever for the
dissolution of any Principal Company or for the suspension of any material
operations of any Principal Company; or
(o) (i) a creditor of any Borrower Affiliated Company shall obtain
possession of any substantial and material portion of the Collateral by any
means, including levy, distraint, replevin or self-help; or (ii) any material
portion of the Collateral shall be taken by eminent domain or condemnation; or
(iii) a material provision of any of the Loan Documents shall cease for any
reason to be in full force and effect other than pursuant to the terms of the
Loan Documents or as a result of a waiver or amendment by the Lenders or the
Required Lenders, as applicable, or any Principal Company party thereto shall
purport to disavow its material obligations thereunder or shall declare that it
does not have any further obligation thereunder or shall contest the validity or
enforceability thereof.
Section 11.2. TERMINATION OF COMMITMENTS; ACCELERATION OF Obligations. If
any one or more Events of Default shall at any time occur (other than an Event
of Default described in Sections 11.1(g) or 11.1(h)):
(a) the Agent, at the request of the Required Lenders, shall, by written
notice to the Borrower, take any or all of the following actions, at the same or
different times: (i) terminate forthwith all the Commitments or (ii) declare the
Loans then outstanding to be forthwith due and payable in whole or in part,
whereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and any unpaid accrued Fees and all other
liabilities of the Principal Companies accrued hereunder and under any other
Loan Document, shall become forthwith due and payable without presentment,
demand, protest or any other notice of any kind, all of which are hereby
expressly waived by the Principal Companies, anything contained herein or in any
other Loan Document to the contrary notwithstanding; and if any one or more
Events of Default described in Sections 11.1(g) or 11.1(h) above shall at any
time occur, the Commitments shall automatically terminate and the principal of
the Loans then outstanding, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Principal Companies accrued
hereunder and under any other Loan Document, shall automatically become due and
payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Principal Companies, anything
contained herein or in any other Loan Document to the contrary notwithstanding.
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(b) Subject to the provisions of ARTICLE XII hereof, each of the Lenders,
the Agent and the Collateral Trustee may proceed to protect and enforce all or
any of its rights, remedies, powers and privileges under this Agreement, the
Notes or the other Loan Documents by action at law, suit in equity or other
appropriate proceedings, whether for specific performance of any covenant
contained in this Agreement, the Notes or any of the other Loan Documents or in
aid of the exercise of any power granted to the Agent, the Collateral Trustee or
any Lender herein or therein. Neither the Agent, the Lenders nor the Collateral
Trustee shall be required to xxxxxxxx any present or future Collateral or any
other present or future security for or guaranties of, all or any of the
Obligations or to resort to any such Collateral, securities or guaranties in any
particular order.
Section 11.3. NO IMPLIED WAIVERS; RIGHTS CUMULATIVE. No delay on the part
of the Collateral Trustee, the Agent, the Issuing Bank or any Lender in
exercising any right, remedy, power or privilege under any of the Loan Documents
or provided by statute or at law or in equity or otherwise shall impair,
prejudice or constitute a waiver of any such right, remedy, power or privilege
or be construed as a waiver of any Default or Event of Default or as an
acquiescence therein. No right, remedy, power or privilege conferred on or
reserved to the Collateral Trustee, the Agent, the Issuing Bank or any Lender
under any of the Loan Documents or otherwise is intended to be exclusive of any
other right, remedy, power or privilege. Each and every right, remedy, power and
privilege conferred on or reserved to the Collateral Trustee, the Agent, the
Issuing Bank or any Lender under any of the Loan Documents or otherwise shall be
cumulative and in addition to each and every other right, remedy, power or
privilege so conferred on or reserved to the Collateral Trustee, the Agent, the
Issuing Bank or any Lender and may be exercised at such time or times and in
such order and manner as the Collateral Trustee, the Agent, the Issuing Bank or
any Lender shall (in its sole and complete discretion) deem expedient.
Section 11.4. LETTERS OF CREDIT. If any one or more Events of Default
shall at any time occur (other than an Event of Default described in SECTION
11.1(g) or 11.1(h)) the Agent may and, at the request of the Required Lenders,
shall, by written notice to the Borrower, take any or all of the following
actions, at the same or different times:
(a) declare all obligations of the Borrower under any outstanding Letter
of Credit, all the unpaid interest accrued thereon and all (if any) other sums
payable by the Borrower under ARTICLE III of this Agreement, to be immediately
due and payable;
(b) send notices to all or any of the beneficiaries of the Letters of
Credit advising such beneficiaries of the intention and desire of the Agent, as
directed by the Required Lenders, to effect the termination, cancellation and
surrender of such Letters of Credit in thirty (30) days, PROVIDED, however, that
the Agent shall not send any such notice to any beneficiary unless the Agent
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has requested that the Principal Companies deliver cash collateral to the Agent
pursuant to paragraph (c) below and the Principal Companies have failed to
deliver such cash collateral to the Agent within ten (10) days of such request;
and
(c) require that the Borrower deliver to the Agent, on behalf of the
Issuing Bank, cash collateral in an amount equal to the face amount of all
Letters of Credit which remain outstanding; and if any one or more Events of
Default described in Sections 11.1(g) or 11.1(h) shall occur, then (i) all of
the obligations of the Borrower under any outstanding Letter of Credit
Disbursement, together with accrued interest thereon and all (if any) other sums
payable by the Borrower under ARTICLE III of this Agreement, shall automatically
become due and payable, without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived by the Principal
Companies, anything contained herein or in any other Loan Document to the
contrary notwithstanding and (ii) the Agent may take any or all of the actions
set forth in clauses (b) and (c) of this Section 11.4.
ARTICLE XII
THE AGENT
Section 12.1. APPOINTMENT, POWERS AND IMMUNITIES. Each Lender hereby
irrevocably appoints and authorizes the Agent to act as its agent hereunder and
under the other Loan Documents (excluding the Security Documents) with such
powers as are specifically delegated to the Agent by the terms of this Agreement
and such other Loan Documents together with such other powers as are reasonably
incidental thereto. The Agent shall have no duties or responsibilities except
those expressly set forth in this Agreement and the other Loan Documents and
shall not be a trustee for any Lender. The Agent shall not be responsible to the
Lenders for any recitals, statements, representations or warranties contained in
this Agreement or the other Loan Documents or in any certificate or other
documents referred to or provided for in, or received by any of them under, this
Agreement or the other Loan Documents, or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Agreement or
the other Loan Documents or any other document referred to or provided for
herein or therein or for the collectability of the Loans or for the validity,
effectiveness or value of any interest or security covered by the Security
Documents or for the value of any Collateral or for the validity or
effectiveness of any assignment, mortgage, pledge, security agreement, financing
statement, document or instrument, or for the filing, recording, re-filing,
continuing or re-recording of any thereof or for any failure by the Borrower or
any of the other Borrower Affiliated Companies to perform any of its obligations
hereunder or under the other Loan Documents. The Agent may employ agents and
attorneys-in-fact and shall not be answerable, except as to money or securities
received by it or its authorized agents, for the negligence or misconduct of any
such agents or attorneys-in-fact selected by it
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with reasonable care. Neither the Agent nor any of its directors, officers,
employees or agents shall be liable or responsible for any action taken or
omitted to be taken by it or them hereunder, or the other Loan Documents or in
connection herewith or therewith, except for its or their own gross negligence
or willful misconduct.
Section 12.2. RELIANCE BY AGENT. The Agent shall be entitled to rely upon
any certification, notice or other communication (including any thereof by
telephone, telex, telegram or cable) believed by it to be genuine and correct
and to have been signed or sent by or on behalf of the proper person or persons,
and upon advice and statements of legal counsel, independent accountants and
other experts selected by the Agent. As to any matters not expressly provided
for by this Agreement or the other Loan Documents, the Agent shall in all cases
be fully protected in acting, or in refraining from acting hereunder or under
the other Loan Documents in accordance with instructions signed by the Required
Lenders, and such instructions of the Required Lenders and any action taken or
failure to act pursuant thereto shall be binding on all of the Lenders.
Section 12.3. EVENTS OF DEFAULT. The Agent shall not be deemed to have
knowledge of the occurrence of a Default (other than the non-payment of
principal, interest or fees on Loans) unless the Agent has received notice from
a Lender or the Borrower specifying such Default and stating that such notice is
a "Notice of Default". In the event that the Agent receives such a notice of the
occurrence of a Default, the Agent shall give prompt notice thereof to the
Lenders (and shall give each Lender notice of each such non-payment). The Agent
shall (subject to Section 12.7) take such action with respect to such Default as
shall be directed by either all of the Lenders or the Required Lenders, as
provided in Section 13.4.
Section 12.4. RIGHTS AS A LENDER. The Agent and its Affiliates may
(without having to account therefor to any Lender) accept deposits from, lend
money to and generally engage in any kind of banking, trust or other business
with the Borrower Affiliated Companies or their Affiliates, as if it were not
acting as the Agent, and the Agent may accept fees and other consideration from
the Principal Companies or their Affiliates, for services in connection with
this Agreement or any of the other Loan Documents or otherwise without having to
account for the same to the Lenders.
Section 12.5. INDEMNIFICATION. The Lenders shall indemnify the Agent (to
the extent not reimbursed by the Principal Companies under SECTIONS 13.1 and
13.2), ratably in accordance with the aggregate principal amount of the
outstanding Loans made by the Lenders (or, if no Loans are at the time
outstanding, ratably in accordance with their respective Commitments), for any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements or any kind and nature
whatsoever which may be imposed on, incurred by or asserted against the Agent in
any way relating to or arising out of this Agreement or any of the other Loan
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Documents or any other documents contemplated by or referred to herein or
therein or the transactions contemplated by or referred to herein or therein or
the transactions contemplated hereby and thereby (including the costs and
expenses which the Principal Companies are obligated to pay under SECTIONS 13.1
and 13.2, but excluding, unless a Default has occurred and is continuing, normal
administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof, or of any such
other documents, provided that no Lender shall be liable for any of the
foregoing to the extent they arise from the gross negligence or willful
misconduct of the party to be indemnified.
Section 12.6. NON-RELIANCE ON AGENT AND OTHER LENDERS. Each Lender agrees
that it has, independently and without reliance on the Agent or any other
Lender, and based on such documents and information as it has deemed
appropriate, made its own credit analysis of the Principal Companies and
decision to enter into this Agreement and that it will, independently and
without reliance upon the Agent or any other Lender, and based on such documents
and information as it shall deem appropriate at the time, continue to make its
own analysis and decisions in taking or not taking action under this Agreement
or the other Loan Documents. The Agent shall not be required to keep itself
informed as to the performance or observance by the Principal Companies of this
Agreement or the other Loan Documents or any other document referred to or
provided for herein or therein or to inspect the properties or books of the
Principal Companies. Except for notices, reports and other documents and
information expressly required to be furnished to the Lenders by the Agent
hereunder or the other Loan Documents, the Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the affairs, financial condition or business of the Principal
Companies, which may come into the possession of the Agent or any of its
Affiliates.
Section 12.7. FAILURE TO ACT. Except for action expressly required of the
Agent hereunder, the Agent shall in all cases be fully justified in failing or
refusing to act hereunder or thereunder unless it shall be indemnified to its
satisfaction by the Lenders against any and all liability and expense which may
be incurred by it by reason of taking or continuing to take any such action.
Section 12.8. RESIGNATION OR REMOVAL OF AGENT. Subject to the appointment
and acceptance of a successor Agent as provided below, the Agent may resign at
any time by giving not less than thirty (30) days' prior written notice thereof
to the Lenders and the Principal Companies and the Agent may be removed at any
time with or without cause by the Required Lenders. Upon any such resignation or
removal, the Required Lenders shall have the right to appoint a successor Agent.
If no successor Agent shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring Agent's
giving of notice of resignation or the Required Lenders' removal of the retiring
Agent, then the retiring Agent may, on behalf of the Lenders, after consultation
with the Principal Companies, appoint a
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successor Agent which shall be one of the Lenders. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations hereunder. After any retiring Agent's
resignation or removal hereunder as Agent, the provisions of this ARTICLE XII
shall continue in effect for its benefit in respect of any actions taken or
omitted to be taken by it while it was acting as the Agent.
Section 12.9. SHARING OF COLLATERAL AND PAYMENTS.
(a) Prior to any acceleration of the Obligations:
(i) in the event that any Lender shall obtain payment in respect
of a Note or a Letter of Credit Disbursement, or interest thereon, whether
voluntarily or involuntarily, and whether through the exercise of a right
of banker's lien, set-off or counterclaim against any Principal Company or
otherwise, in a greater proportion than any such payment obtained by any
other Lender in respect of the corresponding Note held by it or the share
of any Letter of Credit Disbursement owed to it, then the Lender so
receiving such greater proportionate payment shall (A) purchase for cash
from such other Lender or Lenders such portion of each such other Lender's
or Lenders' Loan corresponding to such Note or (B) reimburse for cash to
such other Lender or Lenders such portion of each such Lender's or
Lenders' share of the Letter of Credit Disbursement, as shall be necessary
to cause such Lender receiving the proportionate overpayment to share the
excess payment with each such other Lender holding corresponding Notes or
Letter of Credit Disbursements; and
(ii) in the event that any Lender shall obtain payment in respect
of any Interest Rate Contract to which such Lender is a party, whether
voluntarily or involuntarily, and whether through the exercise of a right
of banker's lien, set-off or counterclaim against any Principal Company or
otherwise, such Lender shall be permitted to retain the full amount of
such payment and shall not be required to share such payment with any
other Lender.
(b) Upon or following any acceleration of the Obligations, in the event
that any Lender shall obtain payment in respect of a Note or Letter of Credit
Disbursement, or interest thereon, or in respect of an Interest Rate Contract to
which such Lender is a party, or receive any Collateral or proceeds thereof with
respect to any Note, Letter of Credit Disbursement or any Interest Rate Contract
to which it is a party, whether voluntarily or involuntarily, and whether from
the Agent or the Collateral Trustee or through the exercise of a right or
banker's lien, set-off or counterclaim, or otherwise, against any of the
Principal Companies, in a greater proportion than any such payment obtained by
any other Lender in respect of the aggregate amount of the corresponding
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Note held by such Lender, the share of any Letter of Credit Disbursement owed to
it or Interest Rate Contract to which such Lender is a party, then the Lender so
receiving such greater proportionate payment or such greater proportionate
amount of Collateral, shall purchase for cash from the other Lender or Lenders
such portion or each such other Lender's or Lenders' Loan, or shall reimburse
for cash to each Lender or Lenders such portion of each such Lender's or
Lenders' share of the Letter of Credit Disbursement, or shall provide the other
Lenders with the benefits of any such Collateral as shall be necessary to cause
such Lender receiving the proportionate overpayment to share the excess payment
or benefits of such Collateral ratably with each Lender. For the purposes of
this SUBSECTION 12.9(b), payments in respect of Notes or Letter of Credit
Disbursements received by each Lender and receipt of Collateral by each Lender
shall be in the same proportion as the proportion of: (A) the sum of: (x) the
Obligations owing to such Lender in respect of the Notes held by such Lender,
plus (y) the Obligations owing to such Lender in respect of Interest Rate
Contracts to which such Lender is party, if any, plus (z) the Obligations owing
to such Lender in respect of its share of any Letter of Credit Disbursement, if
any, to (B) the sum of: (x) the Obligations owing to all of the Lenders in
respect of all of the Notes, plus (y) the Obligations owing to all of the
Lenders in respect of all Interest Rate Contracts to which any Lender is a
party, plus (z) the Obligations owing to all of the Lenders in respect of all
Letters of Credit Disbursements outstanding; PROVIDED, HOWEVER, that, with
respect to SUBSECTIONS 12.9(a)(i) and (b) above, if all or any portion of such
excess payment or benefits is thereafter recovered from the Lender which
received the proportionate overpayment, such purchase of Loans, reimbursement of
Letter of Credit Disbursements or payment of benefits, as the case may be, shall
be rescinded, and the purchase price, reimbursements and benefits returned, to
the extent of such recovery, but without interest.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section 13.1. FEES AND EXPENSES; INDEMNITY. The Principal Companies will
promptly pay all reasonable costs of the Agent and the Arranger (except for fees
of the Agent's Special Counsel incurred by Agent through the Effective Date) in
structuring and syndicating the Facilities and in preparing, reviewing,
negotiating, executing and delivering the Loan Documents and all reasonable
costs and expenses of the issue of the Notes and all reasonable costs and
expenses in reviewing the Ancillary Documents and of the Borrower's and the
other Principal Companies' performance of and compliance with all agreements and
conditions contained herein on its part to be performed or complied with
(including all costs of filing or recording any assignments, mortgages,
financing statements and other documents), and the reasonable fees and expenses
and disbursements of counsel to the Agent in connection with the administration,
interpretation and enforcement of this Agreement, the other Loan Documents and
all other agreements, instruments and documents relating to this
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transaction, the consummation of the transactions contemplated by all such
documents, the preservation of all rights of the Lenders and the Agent, the
negotiation, preparation, execution and delivery of any amendment, modification
or supplement of or to, or any consent or waiver under, any such document (or
any such instrument which is proposed but not executed and delivered) and with
any claim or action threatened, made or brought against any of the Lenders or
the Agent arising out of or relating to any extent to this Agreement, the other
Loan Documents or the transactions contemplated hereby or thereby. Subject to
the Special Counsel Fee Agreement, the Borrower shall promptly pay all
reasonable fees and disbursements of the Agent's Special Counsel incurred by the
Agent through the Effective Date in connection with the preparation, execution
and delivery of the Loan Documents, the review of the Ancillary Documents and
the consummation of the transactions contemplated by all such documents. In
addition, the Principal Companies will promptly pay all reasonable costs and
expenses (including reasonable fees and disbursements of counsel) suffered or
incurred by the Agent, each Lender and the Collateral Trustee in connection with
its enforcement of the payment of the Notes held by it or any other sum due to
it under this Agreement or any of the other Loan Documents or any of its other
rights hereunder or thereunder. In addition to the foregoing, the Principal
Companies shall indemnify each Lender and the Agent and each of their respective
directors, officers, employees, attorneys and agents against, and hold each of
them harmless from, any loss, liabilities, damages, claims, costs and expenses
(including reasonable attorneys' fees and disbursements) suffered or incurred by
any of them arising out of, resulting from or in any manner connected with, the
execution, delivery and performance of each of the Loan Documents, the Loans,
the Letters of Credit and any and all transactions related to or consummated in
connection with the Loans or the Letters of Credit. The indemnity set forth in
the immediately preceding sentence shall include any losses, liabilities,
damages, claims, costs and expenses suffered or incurred by any Lender or the
Agent or any of their respective directors, officers, employees, attorneys or
agents arising out of or related to any Environmental Matter, Environmental
Liability or Environmental Proceeding, or in investigating, preparing for,
defending against, or providing evidence, producing documents or taking any
other action in respect of any commenced or threatened litigation,
administrative proceeding or investigation under any federal securities law or
any other statute of any jurisdiction, or any regulation, or at common law or
otherwise, which is alleged to arise out of or is based upon: (i) any untrue
statement or alleged untrue statement of any material fact of any Principal
Company and any of its affiliates in any document or schedule filed with the
Securities and Exchange Commission or any other governmental body; (ii) any
omission or alleged omission to state any material fact required to be stated in
such document or schedule, or necessary to make the statements made therein, in
light of the circumstances under which made, not misleading; (iii) any acts,
practices or omission or alleged acts, practices or omissions of any Principal
Company or any of its agents related to the making of any acquisition, purchase
of shares or assets pursuant thereto, financing of such purchases or the
consummation of any
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other transactions contemplated by any such acquisitions which are alleged to be
in violation of any federal securities law or of any other statute, regulation
or other law of any jurisdiction applicable to the making of any such
acquisition, the purchase of shares or assets pursuant thereto, the financing of
such purchases or the consummation of the other transactions contemplated by any
such acquisition; or (iv) any withdrawals, termination or cancellation of any
such proposed acquisition for any reason whatsoever. The indemnity set forth
herein shall be in addition to any other obligations or liabilities of the
Principal Companies to the Agent and the Lenders hereunder or at common law or
otherwise. The provisions of this Section 13.1 shall survive the payment of the
Notes and the termination of this Agreement.
Section 13.2. TAXES. If, under any law in effect on the date of the
closing of any Loan hereunder, or under any retroactive provision of any law
subsequently enacted, it shall be determined that any Federal, state or local
tax (other than taxes based on the net income of the Lenders or the Agent) is
payable in respect of the issuance of any Note, or in connection with the filing
or recording of any assignments, mortgages, financing statements, or other
documents (whether measured by the amount of Indebtedness secured or otherwise)
as contemplated by this Agreement, then the Principal Companies will pay any
such tax and all interest and penalties, if any, and will indemnify the Lenders
and the Agent against and save each of them harmless from any loss or damage
resulting from or arising out of the nonpayment or delay in payment of any such
tax. If any such tax or taxes shall be assessed or levied against any Lender or
any other holder of a Note, such Lender, or such other holder, as the case may
be, may notify the Principal Companies and make immediate payment thereof,
together with interest or penalties in connection therewith, and shall thereupon
be entitled to and shall receive immediate reimbursement therefor from the
Principal Companies. Notwithstanding any other provision contained in this
Agreement, the covenants and agreements of the Principal Companies in this
Section 13.2 shall survive payment of the Notes and the termination of this
Agreement.
Section 13.3. SURVIVAL OF AGREEMENTS AND REPRESENTATIONS; Construction.
All agreements, representations and warranties made herein shall survive the
delivery of this Agreement and the Notes. The headings used in this Agreement
and the table of contents are for convenience only and shall not be deemed to
constitute a part hereof. All uses herein of the masculine gender or of singular
or plural terms shall be deemed to include uses of the feminine or neuter
gender, or plural or singular terms, as the context may require.
Section 13.4. MODIFICATIONS, CONSENTS AND WAIVERS; ENTIRE AGREEMENT. No
modification or amendment of any provision of this Agreement or any of the other
Loan Documents shall be effective unless it shall be in writing and signed by
the Principal Companies party to the relevant Loan Document. No modification,
amendment or waiver of or with respect to any provision of this Agreement or any
of the other Loan
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Documents nor consent to any departure by any Principal Company from any of the
terms or conditions thereof, shall in any event be effective unless it shall be
in writing and signed or consented to in writing by the Required Lenders.
Notwithstanding the foregoing,
(x) no such modification, amendment, waiver or consent shall, without the
consent of each Lender (with Obligations of the respective types being directly
affected thereby):
(a) reduce the principal of, or contract rate of interest on (other than
the reduction of the Default Rate to the rate that would otherwise be
applicable), any Note;
(b) postpone the date fixed for any payment of principal (other than
Excess Cash Flow Payments and Net Proceeds Payments) of or interest on any Note
or for any payment of Fees scheduled to be made hereunder for the account of any
Lender;
(c) reduce the amount of any payment of principal of (other than Excess
Cash Flow Payments and Net Proceeds Payments) or interest on any Note or any
payment of Fees scheduled to be made hereunder for the account of any Lender;
(d) increase any Commitment;
(e) change the definition of "Required Lenders";
(f) release any Collateral, UNLESS either:
(i) such release is in connection with the Sale of such Collateral
and either such Sale is permitted by this Agreement or is consented to by
the Required Lenders, or
(ii) such release is not in connection with the Sale of such
Collateral and the fair market value of the Collateral to be released,
when added to the aggregate fair market value of all Collateral previously
released by the Collateral Trustee (other than in connection with a Sale
of such Collateral, is less than $5,000,000);
(g) release any Guarantor (unless such release is in connection with the
Sale of all of the capital stock of such Guarantor and either such Sale is
permitted by this Agreement or substantially all of the Net Proceeds from such
Sale are used to pay the Obligations or pledged to the Agent as Cash
Collateral);
(h) constitute the assignment or delegation of the rights and obligations
of the Principal Companies under this Agreement; or
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(i) amend this Section 13.4; and
(y) no such modification, amendment, waiver or consent shall:
(a) increase the Commitments of any Lender of any Tranche of Loans over
the amount thereof then in effect (it being understood that a waiver of any
conditions precedent, covenants, Defaults or Events of Default or of a mandatory
prepayment shall not constitute an increase of the Commitment of any Lender
without the consent of such Lender);
(b) without the consent of the Issuing Bank, amend, modify or waive any
provision of ARTICLE III or alter its rights or obligations with respect to
Letters of Credit;
(c) without the consent of the Agent, amend, modify or waive any provision
of ARTICLE XII or any other provision relating to the rights or obligations of
the Agent;
(d) without the consent of the Required Term Loan Lenders (i) alter the
allocation or application of prepayments or repayments as among Term Loans,
Acquisition Loans and Incremental Facility Loans in a manner adverse to Term
Loan Lenders, or (ii) amend, modify or waive any of the terms contained in
SECTION 2.5(B) in a manner adverse to Term Loan Lenders;
(e) without the consent of the Required Acquisition Loan Lenders (i) alter
the allocation or application of prepayments or repayments as among Term Loans,
Acquisition Loans and Incremental Facility Loans in a manner adverse to
Acquisition Loan Lenders, (ii) amend, modify or waive any of the terms contained
in SECTION 2.5(c) in a manner adverse to Acquisition Loan Lenders, or (iii)
amend the definition of Acquisition Loan Commitment Period; or
(f) without the consent of the Required Incremental Facility Loan Lenders
of any Series (i) alter the allocation or application of prepayments or
repayments as among Term Loans, Acquisition Loans and Incremental Facility Loans
of such Series in a manner adverse to Incremental Facility Loan Lenders of such
Series, (ii) amend or waive any of the terms contained in Section 2.5(d) in a
manner adverse to Incremental Facility Loan Lenders of such Series, or (iii)
amend the definition of Incremental Facility Commitment Period.
Any such modification, amendment, waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No consent to or
demand on any of the Principal Companies in any case shall, of itself, entitle
it to any other or further notice or demand in similar or other circumstances.
This Agreement and the other Loan Documents embody the entire agreement and
understanding among the Lenders, the Agent and the Principal Companies and
supersede all prior agreements and understandings relating to the subject matter
hereof. Notwithstanding the foregoing, SCHEDULES 4.1, 4.13, 8.2 and 9.3 to the
Credit Agreement,
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SCHEDULE III to the Collateral Trust Agreement, SCHEDULES 3.01 (a)(ii),
3.01(a)(iii), 3.01(b)(iii), 3.01(b)(iv), 3.01(c) and 3.04(a) to the Borrower
Security Agreement, Schedules 3.01(a)(ii), 3.01(a)(iii), 3.01(b)(iii),
3.01(b)(iv), 3.01(c) and 3.04(a) to the Borrower Subsidiary Security Agreement
and SCHEDULE I to the Borrower Stock Pledge Agreement may be supplemented or
amended and restated by the Borrower in connection with any Permitted
Acquisition, to the extent that such supplement or amendment and restatement
reflects changes that are permitted by the Credit Agreement and the other Loan
Documents. Such supplement or amendment and restatement shall become effective
upon the Borrower's delivery of the same to the Agent, together with a
certificate of an authorized officer of the Borrower that such supplement or
amendment and restatement reflects changes that are permitted by the Credit
Agreement and the other Loan Documents. The Agent shall promptly distribute to
each Lender a copy of any such supplement or amendment and restatement, together
with the certificate of the authorized officer of the Borrower referred to
above.
Section 13.5. REMEDIES CUMULATIVE. Each and every right granted to the
Agent, the Issuing Bank and the Lenders hereunder or under any other document
delivered hereunder or in connection herewith, or allowed it by law or equity,
shall be cumulative and may be exercised from time to time. No failure on the
part of the Agent, the Issuing Bank or any Lender or the holder of any Note to
exercise, and no delay in exercising, any right shall operate as a waiver
thereof, nor shall any single or partial exercise of any right preclude any
other or future exercise thereof or the exercise of any other right. The due
payment and performance of the Obligations shall be without regard to any
counterclaim, right of offset and any other claim whatsoever which any of the
Principal Companies may have against any Lender, the Issuing Bank or the Agent
and without regard to any other obligation of any nature whatsoever which any
Lender, the Issuing Bank or the Agent may have against any Principal Company,
and no such counterclaim or offset shall be asserted by any Principal Company in
any action, suit or proceeding instituted by any Lender, the Issuing Bank or the
Agent for payment or performance of the Obligations.
Section 13.6. FURTHER ASSURANCES. At any time and from time to time, upon
the request of the Agent, the Principal Companies shall execute, deliver and
acknowledge or cause to be executed, delivered and acknowledged, such further
documents and instruments and do such other acts and things as the Agent may
reasonably request in order to fully effect the purposes of this Agreement, the
other Loan Documents and any other agreements, instruments and documents
delivered pursuant hereto or in connection with the Loans, including the
execution and delivery to the Agent of Mortgages in form and substance
satisfactory to the Agent covering all Material Real Property or interests
therein acquired by the Borrower, and all leases of Material Real Property
entered into by the Borrower as tenant or lessee, after the date of this
Agreement, as provided in SUBSECTION 8.15(b).
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Section 13.7. NOTICES. All notices, requests, reports and other
communications pursuant to this Agreement shall be in writing, either by letter
(delivered by hand or commercial messenger service or sent by certified mail,
return receipt requested, except for routine reports delivered in compliance
with Article 5 hereof which may be sent by ordinary first-class mail) or
telegram or telecopy, addressed as follows:
(a) If to the Principal Companies:
c/o Saga Communications, Inc.
00 Xxxxxxxxx Xxxxxx
Xxxxxx Xxxxxx Xxxxx, Xxxxxxxx 00000
Attention: Xx. Xxxxxx X. Xxxxxxxxx
Telecopier No.: (000) 000-0000
with a copy to:
Xxxxxx X. Xxxx at the address set
forth above; and
a copy to:
Xxxxxxx & Xxxxxx, LLP
000 Xxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xxxxxxx X. Xxxxxxxx, Esq.
Telecopier No.: (000) 000-0000
(b) If to any Lender:
To its address set forth below its name on the signature pages
hereof, with a copy to the Agent; and
(c) If to the Agent:
BankBoston, N.A.
000 Xxxxxxx Xxxxxx
Media & Communications (01-21-05)
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xx. Xxxx X. Xxxxxx
Telecopier No.: (000) 000-0000
with a copy (other than in the case of Borrowing Notices and
Reports and other documents delivered in compliance with
ARTICLE V hereof) to:
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Xxxxxxx Xxxx LLP
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxxxx X. Xxxxxxxxxxxx, Esq.
Telecopier No.: (000) 000-0000
Any notice, request or communication hereunder shall be deemed to have been
given on the day on which it is telecopied to such party at the telecopier
number specified above or delivered by hand or such commercial messenger service
to such party at its address specified above, or, if sent by mail, on the third
Business Day after the day deposited in the mail, postage prepaid, or in the
case of telegraphic notice, when delivered to the telegraph company, addressed
as aforesaid. Any party may change the person, address or telecopier number to
whom or which notices are to be given hereunder, by notice duly given hereunder;
provided, however, that any such notice shall be deemed to have been given
hereunder only when actually received by the party to which it is addressed.
Section 13.8. COUNTERPARTS. This Agreement may be signed in any number of
counterparts with the same effect as if the signatures thereto and hereto were
upon the same instrument.
Section 13.9. SEVERABILITY. The provisions of this Agreement are
severable, and if any clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction and shall not in any manner affect such clause or provision in
any other jurisdiction, or any other clause or provision in this Agreement in
any jurisdiction. Each of the covenants, agreements and conditions contained in
this Agreement is independent, and compliance by the Principal Companies with
any of them shall not excuse noncompliance by the Principal Companies with any
other. All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any such covenants, the fact
that it would be permitted by an exception to, or be otherwise within the
limitations of, another covenant shall not avoid the occurrence of a Default or
an Event of Default if such action is taken or condition exists.
Section 13.10. BINDING EFFECT; NO ASSIGNMENT OR DELEGATION BY Borrower.
This Agreement shall be binding upon and inure to the benefit of the Principal
Companies and their successors and to the benefit of the Lenders and the Agent
and their respective successors and assigns. The rights and obligations of the
Principal Companies under this Agreement shall not be assigned or delegated
without the prior written consent of the Agent and the Lenders, and any
purported assignment or delegation without such consent shall be void.
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Section 13.11. ASSIGNMENTS AND PARTICIPATIONS BY LENDERS.
(a) Any Lender may, in the ordinary course of its business and in
accordance with applicable law, at any time sell to one or more banks or other
entities ("PARTICIPANTS") participating interests in any Loan owing to such
Lender, any Note held by such Lender, any Commitment of such Lender, or any
other interest of such Lender hereunder and under the other Loan Documents;
PROVIDED, HOWEVER, that the sum of the principal amount of Obligations and the
aggregate amount of available Commitments being sold shall in no event be less
than $5,000,000 and shall be an integral multiple of $1,000,000 in excess
thereof. In the event of any such sale by a Lender of participating interests to
a Participant, such Lender's obligations under this Agreement to the other
parties to this Agreement shall remain unchanged, such Lender shall remain
solely responsible for the performance thereof, such Lender shall remain the
holder of any such Note for all purposes under this Agreement and the other Loan
Documents, the Borrower and the Agent 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 and such Lender shall retain the
sole right to enforce the Obligations of the Principal Companies to such Lender
and to approve any amendment, modification or waiver of any provision of this
Agreement. It is understood that nothing in the prior sentence or elsewhere in
this SECTION 13.11 shall prohibit a Lender from agreeing with any Participant
that such Lender will not take any action which would require approval of all of
the Lenders under Section 13.4 without the consent of such Participant and each
Lender hereby agrees that it will not agree with any Participant that it will
not take any action without such Participant's consent except such actions as
would require approval of all Lenders under SECTION 13.4. The Borrower agrees
that if amounts outstanding under this Agreement or the Notes are due or unpaid,
or shall have been declared or shall have become due and payable upon the
occurrence of an Event of Default, each Participant shall be deemed to have the
right of setoff in respect of its participating interest in amounts owing under
this Agreement or any Note to the same extent as if the amount of its
participating interest were owing directly to it as a Lender under this
Agreement or any Note, PROVIDED that such Participant shall only be entitled to
such right of setoff if it shall have agreed in the agreement pursuant to which
it shall have acquired its participating interest to purchase at par from the
other Lenders participations in the Credit Extensions held by the other Lenders
in such amounts, and make such other adjustments from time to time as shall be
equitable, to the end that all the Lenders shall share the benefit of such
payment PRO RATA in accordance with the unpaid principal and interest on the
Credit Extensions held by each of them as provided in Section 2.18. The Borrower
also agrees that each Participant shall be entitled to the benefits of SECTIONS
2.20, 2.24, and 13.2 with respect to its participation in the Commitments and
the Credit Extensions outstanding from time to time and all amounts to which any
Participant is entitled thereunder shall be paid by the Borrower directly to the
Lender; PROVIDED, that no Participant shall be entitled to receive any greater
amount pursuant to such Sections than the transferor
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Lender would have been entitled to receive in respect of the amount of the
participation transferred by such transferor Lender to such Participant had no
such transfer occurred.
(b) Any Lender (any such Lender being referred to herein as an "ASSIGNING
LENDER") may, in the ordinary course of its business and in accordance with
applicable law, at any time sell to any other Lender or any Affiliate of such
Assigning Lender and, with the consent of the Borrower (except during the
continuance of an Event of Default) and the Agent (neither of which consents
shall be unreasonably withheld), to one or more additional banks or other
financial institutions (a "PURCHASING LENDER") all or any part of its rights and
obligations under this Agreement and the Notes. Any such assignment (an
"ASSIGNMENT") shall be made pursuant to an Assignment and Acceptance Agreement,
substantially in the form of EXHIBIT E attached hereto (an "ASSIGNMENT AND
ACCEPTANCE AGREEMENT"), executed by such Purchasing Lender, such Assigning
Lender (and, in the case of a Purchasing Lender that is not then a Lender or an
Affiliate of the Assigning Lender, by the Borrower and the Agent) and delivered
to the Agent for its acceptance and recording in the Register; PROVIDED,
HOWEVER, that (i) the sum of such Assigning Lender's available Credit Extensions
and Commitments being assigned pursuant to such Assignment (determined as of the
date of the Assignment with respect to such Assignment) shall in no event be
less than $5,000,000 and shall be an integral multiple of $1,000,000 (or, if
less, the entire remaining amount of the Assigning Lender's Commitments and
Obligations), (ii) each such Assignment shall be of a constant, and not a
varying, percentage of all of the Assigning Lender's rights and obligations
under this Agreement. From and after the effective date specified in each
Assignment and Acceptance Agreement, which effective date must be at least five
(5) Business Days after the execution and delivery of such Assignment and
Acceptance Agreement to the Agent and (if required) the acceptance of such
Assignment and Acceptance Agreement by the Borrower and the Agent (the "TRANSFER
EFFECTIVE DATE"): (x) the Purchasing Lender thereunder shall be a party hereto
and, to the extent provided in such Assignment and Acceptance Agreement, have
the rights and obligations of a Lender hereunder with respect to the Commitments
and Credit Extensions as set forth therein, and (y) the Assigning Lender
thereunder shall, to the extent provided in such Assignment and Acceptance
Agreement, be released from its obligations under this Agreement to the extent
that such obligations have been assumed by the Purchasing Lender (and, in the
case of an Assignment and Acceptance Agreement covering all or the remaining
portion of an Assigning Lender's Commitments and Credit Extensions, such
Assigning Lender shall cease to be a party hereto). Each Assignment and
Acceptance Agreement duly executed and delivered in accordance with the
foregoing provisions of this paragraph (b) shall be deemed to amend this
Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Purchasing Lender as a Lender hereunder and the resulting
adjustment of Commitment percentages and amounts of affected Commitments arising
from the purchase by such Purchasing Lender of all or a portion of the rights
and obligations of such Assigning Lender under this Agreement and the Notes.
Within five (5)
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Business Days after the Transfer Effective Date determined pursuant to such
Assignment and Acceptance Agreement and this paragraph (b), the Borrower, at its
own expense, shall execute and deliver to the Agent in exchange for the
surrender of the Note or Notes of the Assigning Lender to the Agent a new Note
or Notes to the order of such Purchasing Lender in an amount equal to the
applicable Commitments or Obligations assumed or acquired by the Purchasing
Lender pursuant to such Assignment and Acceptance Agreement and, if the
Assigning Lender has retained Commitments or outstanding Loans hereunder, a new
Note or Notes to the order of the Assigning Lender in an amount equal to the
applicable Commitments or Obligations retained by it hereunder. Such new Notes
shall be dated the Transfer Effective Date (or such other date as may be agreed
to by the Borrower, the Agent, the Assigning Lender and the Purchasing Lender)
and shall otherwise be in the form of the Notes replaced thereby. The Notes
surrendered by the Assigning Lender shall be returned by the Agent to the
Borrower marked "canceled."
(c) The Agent shall maintain at its address a copy of each Assignment and
Acceptance Agreement delivered to it and a register (the "REGISTER") for the
recordation of the names and addresses of the Lenders and the Commitments of,
and principal amount of the Loans owing to, each Lender from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrower, the Agent and the Lenders may treat each Person whose name is
recorded in the Register as the owner of the Commitments and Loans recorded
therein for all purposes of this Agreement. The Register shall be available for
inspection by the Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice.
(d) Upon its receipt of an Assignment and Acceptance Agreement executed by
an Assigning Lender and Purchasing Lender (and, in the case of a Purchasing
Lender that is not then a Lender or an Affiliate of the Assigning Lender, by the
Borrower and the Agent) together with payment by the Purchasing Lender to the
Agent for the account of the Agent of a registration and processing fee of
$2,500, the Agent shall (i) promptly accept such Assignment and Acceptance
Agreement, (ii) on the Transfer Effective Date determined pursuant thereto and
paragraph (b) of this SECTION 13.11, record the information contained therein in
the Register and (iii) give notice of such acceptance and recordation to each of
the Lenders and the Borrower.
(e) By executing and delivering an Assignment and Acceptance Agreement,
the Assigning Lender thereunder and the Purchasing Lender thereunder confirm to
and agree with each other and the other parties hereto as follows: (i) other
than as provided in such Assignment and Acceptance Agreement, such Assigning
Lender makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in
connection with this Agreement or any of the other Loan Documents or the
execution, legality, validity, enforceability, genuineness, sufficiency or value
of this Agreement, any of the other Loan Documents or any other instrument or
document furnished pursuant hereto or
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123
thereto; (ii) such Assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of any of the
Principal Companies or the performance or observance by any of the Principal
Companies of any of their obligations under this Agreement, any of the other
Loan Documents or any other instrument or document furnished pursuant hereto or
thereto; (iii) such Purchasing Lender confirms that it has received a copy of
this Agreement, together with copies of such financial statements and such other
documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance Agreement;
(iv) such Purchasing Lender will, independently and without reliance upon the
Agent, such Assigning Lender or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (v) such
Purchasing Lender appoints and authorizes the Agent to take such action as agent
on its behalf and to exercise such powers under this Agreement or any of the
other Loan Documents as are delegated to the Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; (vi) such Purchasing
Lender agrees that it will perform in accordance with their terms all of the
obligations which by the terms of this Agreement or any of the other Loan
Documents are required to be performed by it as a Lender; and (vii) such
Purchasing Lender (A) consents in all respects to the provisions of the
Collateral Trust Agreement, (B) agrees to be bound by the terms of the
Collateral Trust Agreement and (C) authorizes the Collateral Trustee as
Collateral Trustee to act on its behalf under the Collateral Trust Agreement and
to exercise such powers under the Collateral Trust Agreement as are delegated to
the Collateral Trustee by the terms thereof, together with such powers as are
reasonably incidental thereto.
(f) The Principal Companies authorize each Lender to disclose to any
Participant or Purchasing Lender (each, a "TRANSFEREE") and any prospective
Transferee any and all information in such Lender's possession concerning the
Principal Companies which has been delivered to such Lender by or on behalf of
the Principal Companies or the Agent pursuant to this Agreement or the other
Loan Documents or which has been delivered to such Lender by or on behalf of the
Principal Companies or the Agent in connection with such Lender's credit
evaluation of the Principal Companies and its Affiliates prior to becoming a
party to this Agreement; PROVIDED, THAT, prior to any such disclosure, the
Transferee or prospective Transferee shall agree to be bound by the provisions
of Section 13.14.
(g) If any interest in this Agreement or any Note is transferred to any
Transferee which is organized under the laws of any jurisdiction other than the
United States or any state thereof, the Assigning Lender shall cause such
Transferee, concurrently with the effectiveness of such transfer, (i) to
represent to the Assigning Lender (for the benefit of the Assigning Lender, the
Agent and the Borrower) that under applicable law and treaties no taxes will be
required to be withheld by the Agent, the Borrower or the Assigning Lender with
respect to any payments to be made to such Transferee in respect of the Credit
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124
Extensions, (ii) to furnish to the Assigning Lender (and, in the case of any
Purchasing Lender registered in the Register, the Agent and the Borrower) either
U.S. Internal Revenue Service Form 4224 or U.S. Internal Revenue Service Form
1001 or U.S. Internal Revenue Service Form W-8 (wherein such Transferee claims
entitlement to complete exemption from U.S. federal withholding tax on all
interest payments hereunder) and (iii) to agree (for the benefit of the
Assigning Lender, the Agent and the Borrower) to provide the Assigning Lender
(and, in the case of any Purchasing Lender registered in the Register, the Agent
and the Borrower) a new Form 4224 or Form 1001 upon the expiration or
obsolescence of any previously delivered form and comparable statements in
accordance with applicable U.S. laws and regulations and amendments duly
executed and completed by such Transferee, and to comply from time to time with
all applicable U.S. laws and regulations with regard to such withholding tax
exemption.
(h) Nothing herein shall prohibit any Lender from pledging or assigning
any Note to any Federal Reserve Bank in accordance with applicable law.
(i) Notwithstanding anything in this Section 13.11 or elsewhere in this
Agreement to the contrary, no Principal Company shall be obligated to reimburse
any Lender, any Purchasing Lender, any Participant or the Agent for any costs or
expenses incurred by any of them in connection with any Lender's sale of any
participating interest or any Assignment hereunder.
Section 13.12. FCC APPROVAL. Notwithstanding anything to the contrary
contained in this Agreement or in the other Loan Documents, neither the Agent
nor any of the Lenders will take any action pursuant to this Agreement or any of
the other Loan Documents, which would constitute or result in a change in
control of, or assignment of any FCC License of, any Principal Company requiring
the prior approval of the FCC without first obtaining such prior approval of the
FCC. After the occurrence of an Event of Default, each Principal Company shall
take or cause to be taken any action which the Agent or the Collateral Trustee
may reasonably request in order to obtain from the FCC such approval as may be
necessary to enable the Agent or the Collateral Trustee to exercise and enjoy
the full rights and benefits granted by this Agreement or any of the other Loan
Documents, including, at the Principal Companies' cost and expense, the use of
the Principal Companies' best efforts to assist in obtaining such approval for
any action or transaction contemplated by this Agreement or any of the other
Loan Documents for which such approval is required by law, including
specifically, without limitation, upon request, to prepare, sign and file with
the FCC the assignor's or transferor's portion of any application or
applications for the consent to the assignment or transfer of control necessary
or appropriate under the FCC's rules and approval of any of the transactions
contemplated by this Agreement or any of the other Loan Documents.
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125
Section 13.13. USURY PROVISION. It is not the intention of any parties to
this Agreement to make an agreement in violation of the laws of any applicable
jurisdiction relating to usury. Regardless of any provision of this Agreement,
the Lenders shall never be entitled to receive, collect or apply, as interest on
the Loans, any amount in excess of the maximum amount permitted by applicable
law. If the Lenders ever receive, collect or apply, as interest, any such
excess, such amount which would be excessive interest shall be deemed a partial
repayment of principal and treated hereunder as such; and if principal is paid
in full, any remaining excess shall be paid to the Borrower. In determining
whether or not the interest paid or payable under any specific contingency
exceeds the maximum amount permitted by applicable law, the Lenders shall, to
the extent permitted under applicable laws, and solely for purposes of making
such determination, (i) characterize any non-principal payment as an expense,
fee or premium rather than as interest, (ii) exclude voluntary prepayments and
the effect thereof, and (iii) amortize, prorate, allocate and spread in equal
parts the total amount of interest throughout the entire contemplated term of
this Agreement so that the interest rate is uniform throughout the entire term
of this Agreement; PROVIDED, HOWEVER, that if the Loans are paid and performed
in full prior to the end of the full contemplated term thereof, and if the
interest received for the actual period of existence thereof exceeds the maximum
amount permitted by applicable law, the Lenders shall refund to the Borrower the
amount of such excess or credit the amount of such excess against the total
principal amount of the Loans owing, and, in such event, the Lenders shall not
be subject to any penalties provided by any laws for contracting for, charging
or receiving interest in excess of the maximum amount permitted by applicable
law. This Section 13.13 shall control every other provision of all agreements
pertaining to the transactions contemplated by or contained in this Agreement.
Section 13.14. CERTAIN LIEN RELEASES. Upon the occurrence of any Permitted
Sale or any other sale of Assets by the Borrower or any Restricted Subsidiary
permitted by Section 9.3(a)(iii) or consented to by the Required Lenders, the
Collateral Trustee's Liens on the Assets sold shall be automatically released.
Notwithstanding the foregoing, the Collateral Trustee's Liens on the proceeds of
any Assets sold shall continue in full force and effect. The Lenders hereby
authorize the Collateral Trustee to execute and deliver such documents and to
take such actions as may be appropriate to give effect to the foregoing.
Section 13.15. CONFIDENTIALITY. The Agent and each Lender shall hold all
(i) projections and financial statements which have not been delivered to the
public, and (ii) all other non-public information which the Agent or such Lender
has been informed is non-public or the Agent or such Lender believes is
confidential and has been obtained pursuant to this Agreement, in accordance
with the Agent's or such Lender's customary procedures for handling confidential
information of such nature and in accordance with safe and sound banking
practices, provided that in any event it is understood and agreed that the Agent
and each Lender may make disclosure to its examiners, affiliates,
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126
outside auditors, counsel, and other professional advisors in connection with
this Agreement or any other Loan Documents or as reasonably required by any BONA
FIDE prospective Transferee or actual Transferee in connection with the
contemplated transfer of any Commitment, Loan, Letter of Credit or Note or any
participation therein (provided that such Transferee agrees to keep such
information confidential) or as required or requested by any Governmental
Authority or representative thereof or pursuant to legal process; provided,
further, that in no event shall any Lender be obligated or required to return
any materials furnished by the Borrower.
Section 13.16. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF TRIAL BY
JURY.
(a) THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL OTHER DOCUMENTS AND
INSTRUMENTS EXECUTED AND DELIVERED IN CONNECTION HEREWITH AND THEREWITH, SHALL
BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF
THE COMMONWEALTH OF MASSACHUSETTS (WITHOUT REFERENCE TO CONFLICTS OR CHOICE OF
LAW).
(b) THE PRINCIPAL COMPANIES IRREVOCABLY CONSENT THAT ANY LEGAL ACTION OR
PROCEEDING AGAINST ANY OF THEM UNDER, ARISING OUT OF OR IN ANY MANNER RELATING
TO THIS AGREEMENT, AND EACH OTHER LOAN DOCUMENT MAY BE BROUGHT IN ANY COURT OF
THE COMMONWEALTH OF MASSACHUSETTS OR IN THE UNITED SATES DISTRICT COURT FOR
MASSACHUSETTS. THE PRINCIPAL COMPANIES, BY THE EXECUTION AND DELIVERY OF THIS
AGREEMENT, EXPRESSLY AND IRREVOCABLY ASSENT AND SUBMIT TO THE PERSONAL
JURISDICTION OF ANY OF SUCH COURTS IN ANY SUCH ACTION OR PROCEEDING. THE
PRINCIPAL COMPANIES FURTHER IRREVOCABLY CONSENT TO THE SERVICE OF ANY COMPLAINT,
SUMMONS, NOTICE OR OTHER PROCESS RELATING TO ANY SUCH ACTION OR PROCEEDING BY
DELIVERY THEREOF TO IT BY HAND OR BY MAIL IN THE MANNER PROVIDED FOR IN SECTION
13.7. THE PRINCIPAL COMPANIES HEREBY EXPRESSLY AND IRREVOCABLY WAIVE ANY CLAIM
OR DEFENSE IN ANY SUCH ACTION OR PROCEEDING BASED ON ANY ALLEGED LACK OF
PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS OR ANY SIMILAR
BASIS. THE PRINCIPAL COMPANIES SHALL NOT BE ENTITLED IN ANY SUCH ACTION OR
PROCEEDING TO ASSERT ANY DEFENSE GIVEN OR ALLOWED UNDER THE LAWS OF ANY STATE
OTHER THAN THE COMMONWEALTH OF MASSACHUSETTS UNLESS SUCH DEFENSE IS ALSO GIVEN
OR ALLOWED BY THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS. NOTHING IN THIS
SECTION 13.15 SHALL AFFECT OR IMPAIR IN ANY MANNER OR TO ANY EXTENT THE RIGHT OF
ANY LENDER TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE
PRINCIPAL COMPANIES IN ANY JURISDICTION OR TO SERVE PROCESS IN ANY MANNER
PERMITTED BY LAW.
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127
(c) EACH OF THE PRINCIPAL COMPANIES WAIVES TRIAL BY JURY IN ANY LITIGATION
IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF, THIS
AGREEMENT, ANY OF THE OTHER LOAN DOCUMENTS, OR ANY INSTRUMENT OR DOCUMENT
DELIVERED PURSUANT TO THIS AGREEMENT, OR THE VALIDITY, PROTECTION,
INTERPRETATION, COLLECTION OR ENFORCEMENT THEREOF.
Section 13.17. INTEGRATION OF SCHEDULES AND EXHIBITS. Annexed to this
Agreement are the SCHEDULES and EXHIBITS. Such SCHEDULES and EXHIBITS are an
integral part of this Agreement and are hereby incorporated by reference.
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128
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed on the date first above written.
PRINCIPAL COMPANIES:
--------------------
SAGA COMMUNICATIONS, INC.
SAGA BROADCASTING CORP.
FRANKLIN COMMUNICATIONS, INC.
LAKEFRONT COMMUNICATIONS, INC.
SAGA COMMUNICATIONS OF
ILLINOIS, INC.
SAGA COMMUNICATIONS OF IOWA, INC.
SAGA COMMUNICATIONS OF IOWA REAL
ESTATE, INC.
TIDEWATER COMMUNICATIONS, INC.
SAGA COMMUNICATIONS OF NEW
ENGLAND, INC.
SAGA QUAD STATES COMMUNICATIONS,
INC.
SAGA COMMUNICATIONS OF MICHIGAN,
INC.
HARBISH CORP.
By:
-------------------------------------
Name:
Title:
137
AGENT:
------
BANKBOSTON, N.A.
By:
------------------------------------
Xxxx X. Xxxxxx, Director
Lending Office for all Loans:
-----------------------------
BankBoston, N.A.
000 Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Address for Notices:
--------------------
BankBoston, N.A.
000 Xxxxxxx Xxxxxx
Media & Communications (01-08-08)
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xx. Xxxx X. Xxxxxx
Telecopier: (000) 000-0000
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130
CO-AGENTS:
----------
THE BANK OF NEW YORK
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Bank of New York
Xxx Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Address for Notices:
--------------------
Bank of New York
Xxx Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xx. Xxxxx Xxxxxxx
Telecopier: 000-000-0000
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131
FLEET BANK, N.A.
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Fleet Bank
0000 Xxxxxx xx xxx Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Address for Notices:
--------------------
Fleet Bank
1185 Avenue of the Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xx. Xxxx Xxxxxxx
Telecopier: 000-000-0000
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132
SUMMIT BANK
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Summit Bank
000 Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Address for Notices:
--------------------
Summit Bank
000 Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attention: Xx. Xxxxx X'Xxxxx
Telecopier: 000-000-0000
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133
ARRANGER:
---------
BANCBOSTON XXXXXXXXX XXXXXXXX INC..
By:
------------------------------------
Title:
Address for Notices:
--------------------
BancBoston Xxxxxxxxx Xxxxxxxx Inc.
000 Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attention: Xxxx X. Xxxxxx, III, Director
Distribution - SEC20 (01-09-02) Telecopier:
LENDERS:
--------
BANKBOSTON, N.A.
By:
------------------------------------
Title:
Address for Notices:
--------------------
BankBoston, N.A.
000 Xxxxxxx Xxxxxx
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: Xx Xxxx X. Xxxxxx
Media & Communications (01-08-08)
Telecopier: (000) 000-0000
142
000
XXX XXXX XX XXX XXXX
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Bank of New York
Xxx Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Address for Notices:
--------------------
Bank of New York
Xxx Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xx. Xxxxx Xxxxxxx
Telecopier: 000-000-0000
143
136
FLEET BANK, N.A.
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Fleet Bank
0000 Xxxxxx xx xxx Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Address for Notices:
--------------------
Fleet Bank
1185 Avenue of the Xxxxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attention: Xx. Xxxx Xxxxxxx
Telecopier: 000-000-0000
144
000
XXXXX XXXX XX XXXXXXXXXX, N.A.
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Union Bank of California, N.A.
000 Xxxxx Xxxxxxxx Xxxxxx
G 00-000 Xxx Xxxxxxx, XX 00000
Address for all Notices:
------------------------
Union Bank of California, N.A.
000 Xxxxx Xxxxxxxx Xxxxxx
G 00-000
Xxx Xxxxxxx, XX 00000
Attention: Xx. Xxxx Xxxxxx
Telecopier: 000-000-0000
145
137
BANK ONE, INDIANA, N.A.
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Bank One, Indiana, N.A.
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Address for Notices:
--------------------
Bank One, Indiana, N.A.
000 Xxxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
Attention: Xxxx Xxxxxx
Telecopier: 000-000-0000
146
138
BANK OF SCOTLAND
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Bank of Scotland
000 Xxxxx Xxxxxx
Xxx Xxxx XX 00000
Address for Notices:
--------------------
Bank of Scotland
Xxx Xxxx Xxxxxx Xxxxxx
Xxxxx 0000
Xxxxxx, XX 00000
Attention: Mr. Xxxxx Xxxxxxxx
Telecopier: 000-000-0000
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139
SUMMIT BANK
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Summit Bank
000 Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Address for Notices:
--------------------
Summit Bank
000 Xxxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attention: Xx. Xxxxxxxxx X'Xxxxx
Telecopier: 000-000-0000
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140
BANK OF MONTREAL
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Client Services
Bank of Montreal, Chicago
000 Xxxxx XxXxxxx Xxxxxx
Xxxxxxx, XX 00000
Address for Notices:
--------------------
Bank of Montreal
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xx. Xxxx Xxxxxx
Telecopier: 000-000-0000
149
000
XXXXX XXXXXXXX XXXX XX XXXXXXXX
By:
------------------------------------
Lending Office for all Loans:
-----------------------------
First National Bank of Maryland
00 Xxxxx Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxx, XX 00000
Address for Notices:
--------------------
First National Bank of Maryland
00 Xxxxx Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxx, XX 00000
Attention: Xx. Xxx Xxxxx
Telecopier: 000-000-0000
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142
[this page intentionally left blank]
151
143
COOPERATIEVE CENTRALE
RAIFFEISEN-BOERENLEENBANK
B.A., "RABOBANK NEDERLAND",
NEW YORK BRANCH
By:
------------------------------------
Title:
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone: 000-000-0000
Telecopier: 000-000-0000
Address for Notices:
--------------------
000 Xxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone: 000-000-0000
Telecopier: 000-000-0000
With Copies to:
---------------
Rabo Support Services
00 Xxxxxxxx Xxxxx
Xxxxxx Xxxx, Xxx Xxxxxx 00000
Telephone: 000-000-0000
Telecopier; 000-000-0000
and
Rabobank Nederland
000 Xxxxx Xxxxxx Xxxxx
Xxxxx 0000
Xxxxxxx, XX 00000-0000
Attention: Xx. Xxxx Xxxxxxx
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144
MICHIGAN NATIONAL BANK
By:
------------------------------------
Title:
Lending Office for all Loans:
-----------------------------
Michigan National Bank
Specialty Industries
0000 Xxxxxxx Xxxx
XX 0000
Xxxxxxxxxx Xxxxx, XX 00000
Address for Notices:
--------------------
Michigan National Bank
Specialty Industries
00000 Xxxxxxx Xxxx
XX 0000
Xxxxxxxxxx Xxxxx, XX 00000
Attention: Xx. Xxxx Xxxxxx
Telecopier: 000-000-0000
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145
For purposes of Section 13.14 only:
COLLATERAL TRUSTEE:
-------------------
BANKBOSTON, N.A.
By:
--------------------------
Xxxx X. Xxxxxx, Director
