1. DEFINITIONS AND CONSTRUCTION | 1 | |||
1.1. Definitions | 1 | |||
1.2. Accounting Terms | 1 | |||
1.3. Code | 1 | |||
1.4. Construction | 1 | |||
1.5. Schedules | 2 | |||
2. LOAN AND TERMS OF PAYMENT | 2 | |||
2.1. Revolver Advances | 2 | |||
2.2. Term Loan | 2 | |||
2.3. Borrowing Procedures and Settlements | 3 | |||
2.4. Payments; Reductions of Commitments; Prepayments | 8 | |||
2.5. [Intentionally Omitted] | 15 | |||
2.6. Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations | 15 | |||
2.7. Crediting Payments | 16 | |||
2.8. Designated Account | 16 | |||
2.9. Maintenance of Loan Account; Statements of Obligations | 17 | |||
2.10. Fees | 17 | |||
2.11. Letters of Credit | 17 | |||
2.12. LIBOR Option | 21 | |||
2.13. Capital Requirements | 23 | |||
2.14. Sponsor Letter of Credit | 24 | |||
3. CONDITIONS; TERM OF AGREEMENT | 25 | |||
3.1. Conditions Precedent to the Initial Extension of Credit | 25 | |||
3.2. Conditions Precedent to all Extensions of Credit | 25 | |||
3.3. Term | 25 | |||
3.4. Effect of Termination | 25 | |||
3.5. Early Termination by Borrower | 26 | |||
3.6. Provisions Regarding Letter of Credit Collateralization | 26 | |||
4. REPRESENTATIONS AND WARRANTIES | 27 | |||
4.1. Organization; Power and Authority | 27 | |||
4.2. Authorization, Etc. | 28 | |||
4.3. Disclosure | 28 | |||
4.4. Organization and Ownership of Shares of Subsidiaries | 28 | |||
4.5. Financial Statements; Projections | 29 | |||
4.6. Compliance with Laws, Other Instruments, Etc. | 29 | |||
4.7. Governmental Authorizations, Etc. | 29 | |||
4.8. Litigation; Observance of Statutes and Orders | 30 | |||
4.9. Taxes | 30 | |||
4.10. Title to Property; Leases | 30 |
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4.11. Licenses, Permits, Etc. | 31 | |||
4.12. Compliance with ERISA | 31 | |||
4.13. Outstanding Indebtedness | 31 | |||
4.14. Status under Certain Statutes | 31 | |||
4.15. Environmental Matters | 32 | |||
4.16. No Default | 32 | |||
4.17. Patriot Act | 32 | |||
4.18. Margin Stock | 33 | |||
4.19. OFAC | 33 | |||
5. AFFIRMATIVE COVENANTS | 33 | |||
5.1. Financial and Business Information | 33 | |||
5.2. Officer’s Certificate | 36 | |||
5.3. Inspection | 37 | |||
5.4. Compliance with Law | 37 | |||
5.5. Insurance | 38 | |||
5.6. Maintenance of Properties | 38 | |||
5.7. Payment of Taxes | 38 | |||
5.8. Corporate Existence, Etc. | 38 | |||
5.9. Additional Guarantors | 39 | |||
5.10. Sale of Culver City | 39 | |||
6. NEGATIVE COVENANTS | 39 | |||
6.1. Transactions with Affiliates | 39 | |||
6.2. Merger, Consolidation, Etc. | 40 | |||
6.3. Limitation on Indebtedness | 40 | |||
6.4. Limitation on Liens | 41 | |||
6.5. Limitation on Investments | 42 | |||
6.6. Restricted Payments | 43 | |||
6.7. Line of Business | 43 | |||
6.8. Limitation on Sale of Assets | 43 | |||
6.9. Capital Expenditures; Acquisitions | 44 | |||
6.10. Limitation on Amendments to Senior Refinancing Documents / Senior Documents | 44 | |||
6.11. No Foreign Subsidiaries | 44 | |||
6.12. Use of Proceeds | 45 | |||
6.13. Restrictive Agreements | 45 | |||
7. FINANCIAL COVENANT | 46 | |||
7.1. Maintenance of Senior Debt Leverage Ratio | 46 | |||
8. EVENTS OF DEFAULT | 46 |
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9. RIGHTS AND REMEDIES | 49 | |||
9.1. Rights and Remedies | 49 | |||
9.2. Remedies Cumulative | 50 | |||
10. WAIVERS; INDEMNIFICATION | 50 | |||
10.1. Demand; Protest; Etc. | 50 | |||
10.2. [Intentionally Omitted] | 50 | |||
10.3. Indemnification | 50 | |||
11. NOTICES | 51 | |||
12. CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; CALIFORNIA JUDICIAL REFERENCE | 52 | |||
13. ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS; GORES PARTY SUBORDINATION | 53 | |||
13.1. Assignments and Participations | 53 | |||
13.2. Successors | 58 | |||
13.3. Sponsor Guaranty and Put Agreement | 58 | |||
13.4. Right of First Offer Agreement; Joinder to Applicable Subordination Agreement | 58 | |||
13.5. Gores Party Subordination | 59 | |||
14. AMENDMENTS; WAIVERS | 59 | |||
14.1. Amendments and Waivers | 59 | |||
14.2. Replacement of Holdout Lender | 61 | |||
14.3. No Waivers; Cumulative Remedies | 61 | |||
15. AGENT; THE LENDER GROUP | 62 | |||
15.1. Appointment and Authorization of Agent | 62 | |||
15.2. Delegation of Duties | 62 | |||
15.3. Liability of Agent | 63 | |||
15.4. Reliance by Agent | 63 | |||
15.5. Notice of Default or Event of Default | 64 | |||
15.6. Credit Decision | 64 | |||
15.7. Costs and Expenses; Indemnification | 64 | |||
15.8. Agent in Individual Capacity | 65 | |||
15.9. Successor Agent | 65 | |||
15.10. Lender in Individual Capacity | 66 | |||
15.11. [Intentionally Omitted] | 66 | |||
15.12. Restrictions on Actions by Lenders; Sharing of Payments | 66 | |||
15.13. [Intentionally Omitted] | 67 | |||
15.14. Payments by Agent to the Lenders | 67 | |||
15.15. Concerning the Related Loan Documents | 67 | |||
15.16. Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information | 68 | |||
15.17. Several Obligations; No Liability | 68 |
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16. WITHHOLDING TAXES | 69 | |||
17. GENERAL PROVISIONS | 72 | |||
17.1. Effectiveness | 72 | |||
17.2. Section Headings | 72 | |||
17.3. Interpretation | 72 | |||
17.4. Severability of Provisions | 73 | |||
17.5. [Intentionally Omitted] | 73 | |||
17.6. Debtor-Creditor Relationship | 73 | |||
17.7. Counterparts; Electronic Execution | 73 | |||
17.8. Revival and Reinstatement of Obligations | 73 | |||
17.9. Confidentiality | 74 | |||
17.10. Lender Group Expenses | 75 | |||
17.11. USA PATRIOT Act | 76 | |||
17.12. Integration | 76 |
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Exhibit A-1 | Form of Assignment and Acceptance | |
Exhibit C-1 | Form of Compliance Certificate | |
Exhibit L-1 | Form of LIBOR Notice | |
Exhibit 3.1(c)(iii) | Form of Guaranty | |
Exhibit 3.1(c)(iv) | Form of WFF Subordination Agreement | |
Exhibit 3.1(c)(v) | Form of Sponsor Guaranty and Put Agreement | |
Exhibit 3.1(c)(vii) | Form of Sponsor Letter of Credit | |
Exhibit 3.1(c)(viii) | Form of Right of First Offer Agreement | |
Exhibit 3.1(d) | Form of Secretary’s Certificate of Borrower | |
Exhibit 3.1(h) | Form of Secretary’s Certificate of Guarantors | |
Exhibit 3.1(j) | Form of Secretary’s Certificate of Sponsor Guarantors | |
Exhibit 3.1(n) | Form of Opinion of Loan Parties’ Counsel | |
Exhibit 3.1(o) | Form of Opinion of Sponsor Guarantors’ Counsel | |
Schedule A-1 | Agent’s Account | |
Schedule A-2 | Authorized Persons | |
Schedule C-1 | Commitments | |
Schedule D-1 | Designated Accounts | |
Schedule S-1 | Specified Competitors | |
Schedule S-2 | New Competitors | |
Schedule 1.1 | Definitions | |
Schedule 3.1 | Conditions Precedent | |
Schedule 3.9 | Changes in Corporate Structure | |
Schedule 4.4 | Subsidiaries and Ownership of Subsidiaries | |
Schedule 4.5 | Financial Statements | |
Schedule 4.8 | Litigation | |
Schedule 4.11 | Intellectual Property | |
Schedule 5.10 | Sale-Leaseback Transaction Terms | |
Schedule 6.3 | Existing Capital Leases | |
Schedule 6.4 | Existing Liens | |
Schedule 6.5(d) | Existing Investments | |
Schedule 6.5(e) | Other Investments | |
Schedule 6.8(e) | Sales and Dispositions of Property |
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Date | Senior Debt Leverage Ratio | |
December 31, 2009 | 7.20 to 1.0 | |
March 31, 2010 | 6.90 to 1.0 | |
June 30, 2010 | 6.35 to 1.0 | |
September 30, 2010 | 5.75 to 1.0 | |
December 31, 2010 | 5.20 to 1.0 | |
March 31, 2011 | 4.90 to 1.0 | |
June 30, 2011 | 4.60 to 1.0 | |
September 30, 2011 | 4.35 to 1.0 | |
December 31, 2011 and as of the last date of each fiscal quarter thereafter | 4.05 to 1.0 |
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If to Borrower: | WESTWOOD ONE, INC. | ||
40 West 57th Street | |||
New York, New York 10019 | |||
Attn: Rod Sherwood | |||
Fax No.: (212) 641-2198 | |||
with copies to: | PROSKAUER ROSE LLP | ||
2049 Century Park East, 32nd Floor | |||
(which shall not | Los Angeles, California 90067-3206 | ||
constitute notice) | Attn: Michael Woronoff | ||
Fax No.: (310) 557-2193 | |||
and | |||
THE GORES GROUP, LLC | |||
10877 Wilshire Boulevard, 18th Floor | |||
Los Angeles, California 90024 | |||
Attn: General Counsel | |||
Fax No.: (310) 209-3310 | |||
and | |||
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP | |||
300 S. Grand Avenue, Suite 3400 | |||
Los Angeles, California 90071 | |||
Attn: Gregory Robins, Esq. | |||
Fax No.: (213) 687-5600 |
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If to Agent: | WELLS FARGO FOOTHILL, LLC | ||
2450 Colorado Avenue, Suite 3000 | |||
Santa Monica, California 90404-3597 | |||
Attn: Business Finance Manager — Westwood One, Inc. | |||
Fax No.: (310) 453-7413 | |||
with copies to: | GOLDBERG, KOHN, BELL, BLACK, | ||
ROSENBLOOM & MORITZ, LTD. | |||
55 East Monroe Street, Suite 3300 | |||
(which shall not | Chicago, Illinois 60603 | ||
constitute notice) | Attn: Jonathan M. Cooper, Esq. | ||
Fax No.: (312) 332-2196 |
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WESTWOOD ONE, INC., a Delaware corporation, as Borrower | ||||
By: | /s/ Roderick M. Sherwood, III | |||
Name: | Roderick M. Sherwood, III | |||
Title: | President |
WELLS FARGO FOOTHILL, LLC, a Delaware limited liability company, as Agent and as a Lender | ||||
By: | /s/ Marina Cheng | |||
Name: | Marina Cheng | |||
Title: | Vice President |
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