5,365,073 Shares
Lamar Advertising Company
Class A Common Stock
(Par Value $.00l per share)
UNDERWRITING AGREEMENT
November 7, 2001
GOLDMAN, SACHS & CO.
85 Broad Street
New York, New York 10004
Ladies and Gentlemen:
AMFM Operating, Inc., a wholly-owned subsidiary of Clear Channel
Communications, Inc. (the "Selling Shareholder"), proposes to sell to Goldman,
Sachs & Co. (the "Underwriter") an aggregate of 5,365,073 shares of the Class A
Common Stock, par value $.00l per share (the "Shares") of Lamar Advertising
Company, a Delaware corporation (the "Company") .
In consideration of the mutual agreements contained herein and of the
interests of the parties in the transactions contemplated hereby, the parties
hereto agree as follows:
1. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
(a) The Company represents and warrants as follows:
(i) A registration statement on Form S-3 (File No.
333-45490) with respect to the Shares has been filed with the
Securities and Exchange Commission (the "Commission") under the
Securities Act of 1933, as amended (the "Act") and has become
effective. Such registration statement, including any documents
incorporated therein by reference and any exhibits, financial
statements and schedules thereto is hereinafter referred to as the
"Registration Statement". On the effective date of the Registration
Statement, such Registration Statement conformed in all material
respects with the requirements of the Act, and the Rules and
Regulations of the Commission (the "Rules and Regulations") thereunder.
A copy of the Registration Statement, including any amendments thereto,
the preliminary prospectuses contained therein and the exhibits,
financial statements and schedules, as finally amended and revised,
have heretofore been delivered by the Company to you. The Registration
Statement has been declared effective by the Commission under the Act
and no post-effective amendment thereto has been filed as of the date
of this Agreement. As used herein, Prospectus means the base prospectus
included in the Registration Statement as supplemented by a prospectus
supplement dated the date of this Agreement filed by the Company with
the Commission pursuant to Rule 424(b). Each preliminary supplement or
amendment thereto relating to the Shares being issued and sold pursuant
hereto is herein referred to as a "Preliminary Prospectus." Any
reference herein to the
Registration Statement, any Preliminary Prospectus or the Prospectus
shall be deemed to refer to and include the documents incorporated by
reference therein, as of the date of such Registration Statement, as
the case may be, and, in the case of any reference herein to any
Prospectus, also shall be deemed to include any documents incorporated
by reference therein, and any supplements or amendments relating to the
Shares being issued and sold pursuant hereto, filed with the Commission
under Rule 424(b), and prior to the termination of the offering of the
Shares by the Underwriter. Any reference to the Registration Statement
shall include any post-effective amendment filed pursuant to Rule
462(d).
(ii) The Company has been duly organized and is
validly existing as a corporation in good standing under the laws of
the State of Delaware, with corporate power and authority to own or
lease its properties and conduct its business as described in the
Registration Statement; the subsidiaries listed on Schedule I hereto
(the "Subsidiaries") are the only subsidiaries of the Company; the
Subsidiaries have been duly organized and are validly existing as
corporations in good standing under the laws of their jurisdiction of
organization, with corporate power and authority to own or lease their
properties and conduct their business as described in the Registration
Statement, except where the failure so to be in good standing does not,
individually or in the aggregate, have a material adverse effect on the
condition (financial or other), business, properties, net worth or
results of operations of the Company and the Subsidiaries taken as a
whole (a "Material Adverse Effect"). The Company and the Subsidiaries
are duly qualified to transact business in all jurisdictions in which
the conduct of their business requires such qualification, except where
the failure so to qualify would not have a Material Adverse Effect; the
outstanding shares of capital stock of the Subsidiaries have been duly
authorized and validly issued, are fully paid and non-assessable; and,
except as indicated on Schedule I hereto, all of the shares of capital
stock of the Subsidiaries are owned by the Company free and clear of
all liens, encumbrances and security interests (other than as described
in the Registration Statement) which would not reasonably be expected
individually or in the aggregate to materially impair the value of such
shares, and no options, warrants or other rights to purchase,
agreements or other obligations to issue or other rights to convert any
obligations into shares of capital stock or ownership interests of the
Subsidiaries are outstanding. Except for the Subsidiaries and
investments in securities as described in the Registration Statement,
the Company has no equity or other interest in, or right to acquire an
equity or other interest in, any corporation, partnership, trust or
other entity.
(iii) The outstanding shares of Class A Common Stock
of the Company, including the Shares to be sold by the Selling
Shareholder, have been duly authorized and validly issued and are fully
paid and non-assessable; and no preemptive rights of stockholders exist
with respect to any of the Shares or the issue and sale thereof.
(iv) The Shares conform with the statements
concerning them in the Registration Statement.
(v) The Commission has not issued an order preventing
or suspending the use of any Prospectus or Preliminary Prospectus
relating to the proposed offering of the Shares nor instituted
proceedings for that purpose. The Registration Statement contains and
the Prospectus and any amendments or supplements thereto will contain
all statements which are required to be stated therein by, and in all
material respects conform or will conform, as the case may be, to the
requirements of, the Act and the Rules and Regulations. The documents
incorporated by reference in the Prospectus, at the time they were
filed or will be filed with the Commission, conformed or will conform
at the time of filing, in all material respects to the requirements of
the Securities Exchange Act of 1934, as amended (the "Exchange Act") or
the Act, as applicable, and the Rules and Regulations of the Commission
thereunder. Neither the Registration Statement nor any amendment
thereto, and neither the Prospectus nor any supplement thereto,
including any documents incorporated by reference therein, contains or
will contain, as the case may be, any
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untrue statement of a material fact or omits or will omit to state any
material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they
were made, not misleading; provided, however, that the Company makes no
representations or warranties as to information contained in or omitted
from the Registration Statement or the Prospectus, or incorporated by
reference or any such amendment or supplement or any documents
incorporated by reference therein, in reliance upon, and in conformity
with, written information furnished to the Company by or on behalf of
the Selling Shareholder or the Underwriter, specifically for use in the
preparation thereof.
(vi) The consolidated financial statements of the
Company and its subsidiaries, together with related notes and
schedules, as set forth or incorporated by reference in the
Registration Statement, present fairly the consolidated financial
position and the consolidated results of operations of the Company and
its subsidiaries at the indicated dates and for the indicated periods.
All such financial statements have been prepared in accordance with
generally accepted principles of accounting, consistently applied
throughout the periods involved, except as disclosed therein. The
summary and selected financial and statistical data included or
incorporated by reference in the Registration Statement present fairly
in all material respects the information shown therein and have been
compiled on a basis consistent with the financial statements presented
therein.
(vii) Since January 1, 1999, the documents filed by
the Company with the Commission pursuant to the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), at the time filed with the
Commission, conformed in all material respects to the requirements of
the Exchange Act, and such documents at the time of such filing did
not, and as of the date hereof do not, contain any untrue statement of
a material fact or omit to state any material fact required to be
stated therein or necessary or make the statements therein not
misleading.
(viii) There is no action or proceeding pending or,
to the knowledge of the Company, threatened against the Company or the
Subsidiaries before any court or administrative agency or by any
regulatory authority which may reasonably be expected to have a
Material Adverse Effect.
(ix) The Company and the Subsidiaries have good and
marketable title to all of the properties and assets reflected in the
financial statements (or as described in the Registration Statement)
hereinabove described, subject to no lien, mortgage, pledge, charge or
encumbrance of any kind except those reflected in such financial
statements (or as described in the Registration Statement) or which are
not material in amount. The Company and the Subsidiaries occupy their
leased properties under valid and binding leases conforming to the
description thereof set forth in the Registration Statement, with such
exceptions as would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect or materially impair the
value of such leasehold estate to the Company or such Subsidiary.
(x) The Company and the Subsidiaries have filed all
Federal, State and foreign income tax returns which have been required
to be filed and have paid all taxes indicated by said returns and all
assessments received by them or any of them to the extent that such
taxes have become due and are not being contested in good faith, except
for such failure to file or defaults in payment of a character not
required to be disclosed in the Prospectus and which would not
reasonably be expected to have a Material Adverse Effect.
(xi) Since the respective dates as of which
information is given in the Registration Statement and the Prospectus,
as the same may be amended or supplemented, there has not been any
material adverse change or any development involving a prospective
material adverse change in or affecting the condition, financial or
otherwise, of the Company and the Subsidiaries taken as a whole or the
earnings, business affairs, management, or business prospects
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of the Company and the Subsidiaries taken as a whole, whether or not
occurring in the ordinary course of business, and there has not been
any material transaction entered into by the Company or any of the
Subsidiaries other than transactions in the ordinary course of business
and changes and transactions contemplated by the Registration Statement
and the Prospectus, as the same may be amended or supplemented. The
Company and the Subsidiaries have no contingent obligations which are
material to the Company and the Subsidiaries taken as a whole and which
are not disclosed in the Registration Statement or the Prospectus, as
it may be amended or supplemented.
(xii) Neither the Company nor any of the Subsidiaries
is, nor with the giving of notice, lapse of time or both, will be, in
default under its Certificate of Incorporation or By-Laws or any
agreement, lease, contract, indenture or other instrument or obligation
to which it is a party or by which it or any of its properties is bound
and which default is of material significance in respect of the
business or financial condition of the Company and the Subsidiaries
taken as a whole. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof will not
conflict with or result in a breach of any of the terms or provisions
of, or constitute a default under, any indenture, mortgage, deed of
trust or other agreement or instrument to which the Company or any of
the Subsidiaries is a party, or of the Charter or By-Laws of the
Company or the Subsidiaries or any order, rule or regulation applicable
to the Company or any of the Subsidiaries of any court or of any
regulatory body or administrative agency or other governmental body
having jurisdiction which conflict, breach or default would have a
Material Adverse Effect.
(xiii) Each approval, consent, order, authorization,
designation, declaration or filing by or with any regulatory,
administrative or other governmental body necessary in connection with
the execution and delivery by the Company of this Agreement and the
consummation of the transactions herein contemplated (except such
additional steps as may be required by the National Association of
Securities Dealers, Inc. (the "NASD") or may be necessary to qualify
the Shares for public offering by the Underwriter under State
securities or Blue Sky laws) has been obtained or made and is in full
force and effect.
(xiv) The Company and each of the Subsidiaries hold
all material licenses, consents, authorizations, approvals, orders,
certificates and permits (collectively, "Licenses") of and from, all
federal, state, local, foreign and other governmental authorities, all
self-regulatory organizations in each case as required for the conduct
of the business in which it is engaged, and each such License is in
full force and effect, except to the extent that the failure to obtain
or maintain any such License would not have a Material Adverse Effect.
(xv) The Company and the Subsidiaries are in
compliance with all applicable federal, state, foreign and local laws
and regulations relating to (i) zoning, land use, protection of the
environment, human health and safety or hazardous or toxic substances,
wastes, pollutants or contaminants and (ii) employee or occupational
safety, discrimination in hiring, promotion or pay of employees,
employee hours and wages or employee benefits, except where such
noncompliance would not, singly or in the aggregate, have a Material
Adverse Effect.
(xvi) Each of KPMG LLP, PricewaterhouseCoopers LLP,
BDO Seidman, LLP, Arthur Andersen LLP and Barbich Longcrier Hooper &
King, Accounting Corporation (each an "Accountant"), who have certified
certain of the financial statements of the Company filed with the
Commission as part of, or incorporated by reference in, the
Registration Statement, are independent public accountants as required
by the Act and the Rules and Regulations.
(xvii) The Company has never been, is not now, and
immediately after the sale of the Shares under this Agreement will not
be, an "investment company" within the meaning of the Investment
Company Act of 1940, as amended.
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(xviii) Any Shares of the Company to be sold under
this Agreement have been approved for listing on the Nasdaq Stock
Market subject to official notice of issuance.
(b) The Selling Shareholder represents and warrants as follows:
(i) Based upon the Selling Shareholder's receipt of a
waiver from the Underwriter dated as of the date hereof of those
certain lock-up obligations of the Selling Shareholder applicable to
the Shares pursuant to that certain Underwriting Agreement, dated as of
October 17, 2001, among the Selling Shareholder, the Underwriter and
the Company (the "October Underwriting Agreement") and that certain
Lock-Up Agreement, dated as of October 17, 2001, between the Selling
Shareholder and the Company (the "Lock-Up Agreement"), the Selling
Shareholder now has and, at the Closing Date (as such date is
hereinafter defined) will have, good and valid title to the Shares to
be sold by the Selling Shareholder, free of any liens, encumbrances,
equities and claims, and full right, power and authority to effect the
sale and delivery of the Shares; and upon the delivery of and payment
for the Shares pursuant to this Agreement, the Underwriter will acquire
good and valid title thereto, free of any liens, encumbrances, equities
and claims.
(ii) Based upon the Selling Shareholder's receipt of
a waiver from the Underwriter dated as of the date hereof of those
certain lock-up obligations of the Selling Shareholder applicable to
the Shares pursuant to the October Underwriting Agreement and the
Lock-Up Agreement, the Selling Shareholder has full right, power and
authority to execute and deliver this Agreement and to perform its
obligations thereunder. The execution and delivery of this Agreement
and the consummation by the Selling Shareholder of the transactions
contemplated herein will not result in a breach of any of the terms and
provisions of, or constitute a default under, any indenture, mortgage,
deed of trust or other agreement or instrument to which the Selling
Shareholder is a party, or of any order, rule or regulation applicable
to the Selling Shareholder of any court or of any regulatory body or
administrative agency or other governmental body having jurisdiction.
(iii) The Selling Shareholder has not taken and will
not take, directly or indirectly, any action designed to result in, or
which has constituted, or which might reasonably be expected to cause
or result in, stabilization or manipulation of the price of the Class A
Common Stock of the Company and, other than as permitted by the Act,
the Selling Shareholder will not distribute any prospectus or other
offering material in connection with the offering of the Shares.
(iv) As of the date hereof, the information
pertaining to such Selling Shareholder under the caption "Selling
Stockholder" in the Prospectus relating to the Registration Statement,
as amended by the information under the caption "Selling Stockholder"
in the Prospectus Supplement relating to the Registration Statement,
other than any numbers expressed as percentages (the "Selling
Shareholder Information"), did not contain any untrue statement of a
material fact and did not omit to state any material fact required to
be stated therein or necessary in order to make the statements therein
not misleading.
In order to document the Underwriter's compliance with the reporting
and withholding provisions of the Tax Equity and Fiscal Responsibility Act of
1982 and the Interest and Dividend Tax Compliance Act of 1983 with respect to
the transactions herein contemplated, the Selling Shareholder agrees, if
required, to deliver to you prior to or at the Closing Date a properly completed
and executed United States Treasury Department Form W-9 or Form 8709 (or other
applicable from or statement specified by Treasury Department regulations in
lieu thereof).
5
2. PURCHASE, SALE AND DELIVERY OF THE SHARES.
(a) On the basis of the representations, warranties and covenants
herein contained, and subject to the conditions herein set forth, the Selling
Shareholder agrees to sell to the Underwriter the Shares and the Underwriter
agrees to purchase from the Selling Shareholder, at a price of $32.50 per share,
the Shares.
(b) Payment for the Shares to be sold hereunder is to be made in
immediately available funds by wire transfer to the order of the Selling
Shareholder for the Shares, against delivery of certificates therefor to the
Underwriters. Such payment and delivery are to be made through the facilities of
The Depository Trust Company, New York, New York, at 10:00 A.M., New York time,
on the third business day after the date of this Agreement or at such other time
and date not later than three business days thereafter as you and the Company
shall agree upon, such time and date being herein referred to as the "Closing
Date." (As used herein, "business day" means a day on which the New York Stock
Exchange is open for trading and on which banks in New York are open for
business and are not permitted by law or executive order to be closed.)
3. OFFERING BY THE UNDERWRITER.
It is understood that the Underwriter is to make a public offering of
the Shares as soon as it deems it advisable to do so. The Shares are to be
offered to the public from time to time for sale in one or more negotiated
transactions or otherwise at market prices prevailing at the time of sale or at
negotiated prices, subject to receipt and acceptance by the Underwriter, and
subject to its right to reject any order in whole or in part.
4. COVENANTS OF THE COMPANY.
(a) The Company covenants and agrees with the Underwriter and the
Selling Shareholder that:
(i) The Company will (A) prepare and timely file with
the Commission under Rule 424(b) of the Rules and Regulations a
supplementary prospectus setting forth such other information and the
terms of the offering contemplated by Section 2 hereof, (B) not file
any amendment to the Registration Statement or supplement to the
Prospectus or document incorporated by reference therein of which the
Underwriter shall not previously have been advised and furnished with a
copy or to which the Underwriter shall have reasonably objected in
writing or which is not in compliance with the Rules and Regulations
and (C) file on a timely basis all reports and any definitive proxy or
information statements required to be filed by the Company with the
Commission subsequent to the date of the Prospectus and prior to the
termination of the offering of the Shares by the Underwriters.
(ii) The Company will advise the Underwriter and the
Selling Shareholder promptly of any request of the Commission for
amendment of the Registration Statement or for supplement to the
Prospectus or for any additional information, or of the issuance by the
Commission of any stop order suspending the effectiveness of the
Registration Statement or the use of the Prospectus or of the
institution of any proceedings for that purpose, and the Company will
use all reasonable efforts to prevent the issuance of any such stop
order preventing or suspending the use of the Prospectus and to obtain
as soon as possible the lifting thereof, if issued.
(iii) The Company will deliver to, or upon the order
of, the Underwriter, from time to time, as many copies of any
Preliminary Prospectus as the Underwriter may reasonably request. The
Company will deliver to, or upon the order of, the Underwriter during
the period when delivery of a Prospectus is required under the Act, as
many copies of the Prospectus
6
in final form, or as thereafter amended or supplemented, as the
Underwriter may reasonably request; provided, however, that if the
Underwriter is required to deliver a prospectus in connection with
sales of any shares at any time nine months or more after the date of
this Agreement, upon your request, but at the expense of such
Underwriter, the Company will prepare and deliver to such Underwriter
such copies of an amended and supplemented Prospectus as you may
reasonably request. The Company will deliver to the Underwriter at or
before the Closing Date, four complete conformed copies of the
Registration Statement and all amendments thereto including all
exhibits filed therewith, and will deliver to the Underwriter such
number of copies of the Registration Statement, including documents
incorporated by reference therein, and of all amendments thereto, as
the Underwriter may reasonably request.
(iv) If during the period in which a prospectus is
required by law to be delivered by an Underwriter or dealer any event
shall occur as a result of which, in the judgment of the Company or in
the opinion of counsel for the Underwriter, it becomes necessary to
amend or supplement the Prospectus in order to make the statements
therein, in the light of the circumstances existing at the time the
Prospectus is delivered to a purchaser, not misleading, or, if it is
necessary at any time to amend or supplement the Prospectus to comply
with the Act, the Company promptly will, at its election, either (A)
prepare and file with the Commission an appropriate amendment to the
Registration Statement or supplement to the Prospectus or (B) prepare
and file with the Commission an appropriate filing under the Exchange
Act which shall be incorporated by reference in the Prospectus so that
the Prospectus as so amended or supplemented will not, in the light of
the circumstances when it is so delivered, be misleading, or so that
the Prospectus will comply with law.
(v) The Company will make generally available to its
security holders, as soon as it is practicable to do so, but in any
event not later than 15 months after the effective date of the
Registration Statement, an earnings statement (which need not be
audited) in reasonable detail, covering a period of at least 12
consecutive months beginning after the effective date of the
Registration Statement, which earning statement shall satisfy the
requirements of Section 11(a) of the Act and Rule 158 of the Rules and
Regulations and will advise you in writing when such statement has been
so made available.
(vi) The Company will, for a period of five years
from the Closing Date, deliver to the Underwriter copies of annual
reports and copies of all other documents, reports and information
furnished by the Company to its stockholders or filed with any
securities exchange pursuant to the requirements of such exchange or
with the Commission pursuant to the Act or the Exchange Act.
(b) The Selling Shareholder covenants and agrees with the Underwriter
that:
(i) In order to document the Underwriter's compliance
with the reporting and withholding provisions of the Tax Equity and
Fiscal Responsibility Act of 1982 and the Interest and Dividend Tax
Compliance Act of 1983 with respect to the transactions herein
contemplated, the Selling Shareholder agrees, if required, to deliver
to you prior to or at the Closing Date a properly completed and
executed United States Treasury Department Form W-9 (or other
applicable form or statement specified by Treasury Department
regulations in lieu thereof).
(ii) The Selling Shareholder will not take, directly
or indirectly, any action designed to cause or result in, or that has
constituted or might reasonably be expected to constitute, the
stabilization or manipulation of the price of any securities of the
Company.
7
5. COSTS AND EXPENSES. The Selling Shareholder will pay all costs,
expenses and fees incident to the performance of the obligations of the Company
and the Selling Shareholder under this Agreement with respect to the sale of the
Shares, including, without limiting the generality of the foregoing, the
following: accounting fees of the Company; the fees and disbursements of counsel
for the Company; the cost of printing and delivering to, or as requested by, the
Underwriter's copies of the Registration Statement, Preliminary Prospectuses,
the Prospectus, this Agreement, the Underwriter's Selling Memorandum, the
Underwriter's Questionnaire, the Invitation Letter; the filing fees of the
Commission; the filing fees and expenses incident to securing any required
review by the NASD of the terms of the sale of the Shares; and the fees and
expenses incurred with respect to the listing of the Shares on the Nasdaq Stock
Market. Neither the Selling Shareholder nor the Company shall, however, be
required to pay for any of the Underwriter's expenses except that, if this
Agreement shall not be consummated because the conditions in Section 7 hereof
are not satisfied, or because this Agreement is terminated by the Underwriter
pursuant to Section 6 hereof, or by reason of any failure, refusal or inability
on the part of the Selling Shareholder or the Company, as the case may be, to
perform any undertaking or satisfy any condition of this Agreement or to comply
with any of the terms hereof on its part to be performed, unless such failure to
satisfy said condition or to comply with said terms be due to the default or
omission of the Underwriter, then the Selling Shareholder or the Company, as the
case may be, shall reimburse the Underwriter for reasonable out-of-pocket
expenses, including fees and disbursements of counsel, reasonably incurred in
connection with investigating, marketing and proposing to market the Shares or
in contemplation of performing their obligations hereunder; but neither the
Company nor the Selling Shareholder shall in any event be liable to the
Underwriter for damages on account of loss of anticipated profits from the sale
by them of the Shares.
6. CONDITIONS OF OBLIGATIONS OF THE UNDERWRITER. The obligation of the
Underwriter to purchase the Shares on the Closing Date are subject to the
accuracy in all material respects, as of the Closing Date of the representations
and warranties of the Company and the Selling Shareholder contained herein, and
to the performance by the Company and the Selling Shareholder in all material
respects, of their respective covenants and obligations hereunder and to the
following additional conditions:
(a) The Registration Statement and all post-effective amendments
thereto shall have become effective and any and all filings required by Rule
424, and any request of the Commission for additional information (to be
included in the Registration Statement or otherwise) shall have been disclosed
to the Underwriter and complied with to its reasonable satisfaction. No stop
order suspending the effectiveness of the Registration Statement, as amended
from time to time, shall have been issued and no proceedings for that purpose
shall have been taken or, to the knowledge of the Company, shall be contemplated
by the Commission.
(b) (1) The Underwriter shall have received on the Closing Date
the opinion of Palmer & Dodge LLP, counsel for the Company, dated the Closing
Date, addressed to the Underwriter to the effect that:
(i) The Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of
the State of Delaware, with corporate authority to own, and hold under
lease, its properties and conduct its business as described in the
Prospectus.
(ii) The Shares conform in all material respects to
the description thereof contained in the Prospectus; and the
certificates for the Shares are in due and proper form.
(iii) The Shares to be sold by the Selling
Shareholder pursuant to this Agreement have been duly authorized and
are validly issued, fully paid and non-assessable; and no statutory
preemptive rights of stockholders or, to the best of such counsel's
knowledge, any other preemptive rights granted by the Company exist
with respect to any of the Shares or the issue and sale thereof.
8
(iv) The Registration Statement has become effective
under the Act and, to the knowledge of such counsel, no stop order
proceedings with respect thereto have been instituted or are pending or
threatened under the Act.
(v) The Registration Statement, the Prospectus and
each amendment or supplement thereto filed with the Commission on or
prior to the date of such opinion comply as to form in all material
respects with the requirements of the Act and the applicable rules and
regulations thereunder in effect as of the time of such filing (except
that such counsel need express no opinion as to the financial
statements, schedules and other financial information included
therein).
(vi) Each document incorporated by reference in the
Registration Statement, the Prospectus and each amendment or supplement
thereto filed with the Commission on or prior to the date of such
opinion complied as to form at the time of such filing in all material
respects with the applicable requirements (if any) of the Exchange Act
and the applicable rules and regulations thereunder in effect as of the
date of such filing (except that such counsel need express no opinion
as to the financial statements, schedules and other financial
information included therein).
(vii) The conditions for the use of Form S-3 as the
proper form for the Registration Statement have been satisfied.
(viii) The execution and delivery of this Agreement
and the consummation of the transactions herein contemplated do not and
will not violate the Certificate of Incorporation or By-Laws of the
Company, or result in a breach of any of the terms or provisions of, or
constitute a default under, any material agreement or instrument listed
as an exhibit to the Company's Annual Report on Form 10-K for the year
ended December 31, 2000 or to any subsequent periodic report filed by
the Company with the Commission to which the Company or any of the
Subsidiaries is a party or by which the Company or any of the
Subsidiaries may be bound (each a "Contractual Obligation"), and which
violation, breach or default could reasonably be expected to result in
a Material Adverse Effect.
(ix) This Agreement has been duly authorized,
executed and delivered by the Company.
(x) Except for approvals, consents, orders,
authorizations, designations, declarations or filings which have been
waived, or which have been obtained or made, no approval, consent,
order, authorization, designation, declaration or filing by or with any
regulatory, administrative or other governmental body is necessary in
connection with the execution and delivery by the Company of this
Agreement and the consummation by the Company of the transactions
herein contemplated (other than as may be required by the NASD or as
required by state securities and Blue Sky laws as to which such counsel
need express no opinion).
(xi) The Company is not, and will not become as a
result of the consummation of the transactions contemplated by this
Agreement, an "investment company" within the meaning of the Investment
Company Act of 1940, as amended, and has not been an "investment
company" at any time since 1988.
In rendering such opinion, Palmer & Dodge LLP may rely as to matters
governed by the laws of states other than the Delaware General Corporate Law or
Federal laws on local counsel in such jurisdictions provided that in each case
Palmer & Dodge LLP shall state that they believe that they and the Underwriter
are justified in relying on such other counsel and such other counsel's opinion
is also delivered
9
to the Underwriter. In addition to the matters set forth above, such opinion
shall also include a statement to the effect that nothing has come to the
attention of such counsel which causes them to believe that (A) the Registration
Statement, as of the time it became effective under the Act and as of the
Closing Date, contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading, and (B) the Prospectus or any supplement
thereto, on the date it was filed pursuant to Rules and Regulations and as of
the Closing Date, contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to make the
statements therein in light of the circumstances under which they were made not
misleading (except that such counsel need express no view as to financial
statements and the notes thereto, schedules and other financial and statistical
information included or incorporated by reference therein). With respect to such
statement, Palmer & Dodge LLP may state that their belief is based upon the
procedures set forth therein, but is without independent check and verification.
(2) The Underwriter shall have received on the Closing Date
the opinion of Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, L.L.P.,
counsel for the Company, dated the Closing Date, addressed to the Underwriter to
the effect that:
(i) Based upon appropriate certificates of public
officials (which shall be furnished to the Underwriter with the
opinion), each of the Subsidiaries incorporated or organized as a
corporation or partnership has been duly incorporated or organized and
is validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization with corporate or
other organizational power and authority to own, and hold under lease,
its properties and conduct its business as described in the Prospectus.
(ii) Based upon appropriate certificates of public
officials (which shall be furnished to the Underwriter with the
opinion), the Company is duly qualified to transact business as a
foreign corporation and is in good standing under the laws of each of
the jurisdictions in which the conduct of its business requires such
qualification, except to the extent that the failure to qualify would
not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(iii) The outstanding shares of capital stock of the
Subsidiaries have been duly authorized and validly issued and are fully
paid and non-assessable. To the best knowledge of such counsel, the
shares of capital stock of the Subsidiaries are owned by the Company or
one of the other Subsidiaries free and clear of all liens, encumbrances
and security interests, and except as disclosed in the Registration
Statement, no options, warrants or other rights to purchase, agreements
or other obligations to issue or other rights to convert any
obligations into shares of capital stock or ownership interests of the
Subsidiaries are outstanding.
(iv) The Company's Class A and Class B Common Stock
have been duly authorized; the outstanding shares of its Class A Common
Stock, including the Shares to be sold by the Company and the Selling
Shareholder, have been duly authorized and validly issued and are fully
paid and non-assessable.
(v) Such counsel does not know of any contracts or
documents required to be filed as exhibits to or incorporated by
reference in the Registration Statement or described in the
Registration Statement or the Prospectus which are not so filed,
incorporated by reference or described as required.
(vi) Such counsel knows of no material legal
proceedings or regulatory or other claims pending or threatened against
the Company or the Subsidiaries of a character required to be reflected
in the Prospectus that are not set forth in the Prospectus.
10
In addition to the matters set forth above, such opinion shall also
include a statement to the effect that nothing has come to the attention of such
counsel which causes them to believe that (A) the Registration Statement, as of
the time it became effective under the Act and as of the Closing Date, contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and (B) the Prospectus or any supplement thereto, on the date it was
filed pursuant to Rules and Regulations and as of the Closing Date, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein in light of the
circumstances under which they were made not misleading (except that such
counsel need express no view as to financial statements and the notes thereto,
schedules and other financial and statistical information included or
incorporated by reference therein).
(3) The Representative shall have received on the Closing Date
the opinion of James R. McIlwain, Esquire, general counsel of the Company, dated
the Closing Date, addressed to the Underwriter to the effect that:
(i) The statements in the Prospectus under the
captions "Risk Factors -- Our Operations are Impacted by the Regulation
of Outdoor Advertising" insofar as such statements constitute a summary
of regulatory matters relating to the outdoor advertising industry,
fairly describe the regulatory matters relating to such industry.
In addition to the matters set forth above, such opinion shall also
include a statement to the effect that nothing has come to the attention of such
counsel which causes them to believe that (A) the Registration Statement, as of
the time it became effective under the Act and as of the Closing Date, contained
an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading, and (B) the Prospectus or any supplement thereto, on the date it was
filed pursuant to Rules and Regulations and as of the Closing Date, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances under which they were made not misleading (except
that such counsel need express no view as to financial statements, and the notes
thereto, schedules and other financial and statistical information included or
incorporated by reference therein).
(4) The Underwriter shall have received on the Closing Date,
the opinion of Akin, Gump, Strauss, Hauer & Feld, L.L.P., counsel for the
Selling Shareholder, dated the Closing Date, addressed to the Underwriter to the
effect that:
(i) Based upon the Selling Shareholder's receipt of a
waiver from the Underwriter dated as of the date hereof of those
certain lock-up obligations of the Selling Shareholder applicable to
the Shares pursuant to the October Underwriting Agreement and the
Lock-Up Agreement, the execution and delivery of this Agreement and the
consummation of the sale of the Shares by the Selling Shareholder as
herein contemplated do not violate or result in a breach of any terms
or provisions of, or constitute a default under any material agreement
or instrument of which such counsel has knowledge, to which the Selling
Shareholder is a party or by which the Selling Shareholder may be
bound, which breach could reasonably be expected to have a materially
adverse effect on the ability of the Selling Shareholder to perform its
obligations under this Agreement.
(ii) Based upon the Selling Shareholder's receipt of
a waiver from the Underwriter dated as of the date hereof of those
certain lock-up obligations of the Selling Shareholder applicable to
the Shares pursuant to the October Underwriting Agreement and the
Lock-Up Agreement, the Selling Shareholder has full legal right, power
and authority, and any approval required by law (other than as may be
required by State securities and Blue Sky laws or
11
for clearance of the offering with the NASD, as to which counsel need
express no opinion) to sell, assign, transfer and deliver the Shares
pursuant to this Agreement.
(iii) This Agreement has been executed and delivered
by the Selling Shareholder.
(iv) Upon payment for the Shares to be sold by the
Selling Shareholder, and delivery of the stock certificates evidencing
the Shares in accordance with the Underwriting Agreement, the
Underwriter (assuming that they are purchasing the Shares being sold by
the Selling Shareholder in good faith and without actual notice of any
adverse claim) will have acquired valid title to the Shares being sold
by the Selling Shareholder on the Closing Date, free and clear of any
adverse claims, any lien in favor of the Company, and any restrictions
on transfer imposed under the Stockholder Agreement, dated as of
September 15, 1999, by and among the Company, the Selling Shareholder,
AMFM Holdings, Inc. and the Reilly Family Limited Partnership, as
amended.
(c) The Underwriter shall have received from Sullivan & Cromwell,
counsel for the Underwriter, an opinion dated the Closing Date, substantially to
the effect specified in subparagraphs (iii), (iv) and (ix) of Paragraph (b) (1)
of this Section 6, and that the Company is a validly organized and existing
corporation under the laws of the State of Delaware. In rendering such opinion
Sullivan & Cromwell may rely as to all matters governed other than by the laws
of the State of New York, the Delaware General Corporation Law or Federal laws
on the opinion of counsel referred to in paragraph (b) of this Section 6. In
addition to the matters set forth above, such opinion shall also include a
statement to the effect that nothing has come to the attention of such counsel
which leads them to believe that (A) the Registration Statement, as of the time
it became effective under the Act and as of the Closing Date, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
and (B) the Prospectus or any supplement thereto, on the date it was filed
pursuant to Rules and Regulations and as of the Closing Date, contained an
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein in light of the
circumstances under which they were made not misleading (except that such
counsel need express no view as to financial statements, schedules and other
financial information included or incorporated by reference therein). With
respect to such statement, Sullivan & Cromwell may state that their belief is
based upon the procedures set forth therein, but is without independent check
and verification.
(d) The Underwriter shall have received, on the Closing Date, from KPMG
LLP a signed letter, dated the Closing Date, which shall (i) confirm that they
are independent public accountants within the meaning of the Act and the
applicable published Rules and Regulations thereunder and stating that in their
opinion the financial statements and schedules examined by them and included in
the Registration Statement comply in form in all material respects with the
applicable accounting requirements of the Act and the related published Rules
and Regulations and (ii) contain such other statements and information as is
ordinarily included in accountants' "comfort letters" to the Underwriter with
respect to financial statements and certain financial and statistical
information contained in the Registration Statement and Prospectus. All such
letters shall be in form and substance satisfactory to the Underwriter. The
letter from KPMG LLP shall confirm that they have performed the procedures
specified by the American Institute of Certified Public Accountants for a review
of interim financial information as described in SAS No. 71, Interim Financial
Information, on the unaudited balance sheet data of the Company as of June 30,
2001 and the unaudited income and cash flow information of the Company for the
six-month period ended June 30, 2001, included in the Company's quarterly report
on Form 10-Q.
(e) The Underwriter shall have received on the Closing Date, a
certificate or certificates of the Chief Executive Officer and the Chief
Financial Officer of the Company to the effect that, as of the Closing Date,
each of them severally represents in such capacity as follows:
12
(i) The Registration Statement has become effective
under the Act and no stop order suspending the effectiveness of the
Registration Statement has been issued, and no proceedings for such
purpose have been taken or are, to his knowledge, contemplated by the
Commission.
(ii) He does not know of any litigation instituted or
threatened against the Company or any of the Subsidiaries a character
required to be disclosed in the Registration Statement which is not so
disclosed; he does not know of any material contract required to be
filed as an exhibit to the Registration Statement which is not so
filed; and the representations and warranties of the Company contained
in Section 1 hereof are true and correct in all material respects as of
the Closing Date.
(iii) He has carefully examined the Registration
Statement and the Prospectus related thereto and, in his opinion, as of
the effective date of the Registration Statement, the statements
contained in the Registration Statement, including any documents
incorporated by reference therein, were true and correct in all
material respects, and such Registration Statement and Prospectus or
any document incorporated by reference therein did not omit to state a
material fact required to be stated therein or necessary in order to
make the statements therein in light of the circumstances in which they
were made, not misleading and, in his opinion, since the effective date
of the Registration Statement, no event has occurred which should have
been set forth in a supplement to or an amendment of the Prospectus
which has not been so set forth in such supplement or amendment.
(f) The Company and the Selling Shareholder shall have furnished to the
Underwriter such further certificates and documents confirming the
representations and warranties of such person contained herein and related
matters as the Underwriter may reasonably have requested.
(g) The Shares, have been approved for listing upon official notice of
issuance on the Nasdaq Stock Market.
The opinions and certificates mentioned in this Agreement shall be
deemed to be in compliance with the provisions hereof only if they are in all
material respects satisfactory to the Underwriter and to Sullivan & Cromwell,
counsel for the Underwriter.
If any of the conditions hereinabove provided for in this Section 6
shall not have been fulfilled when and as required by this Agreement to be
fulfilled, the obligations of the Underwriter hereunder may be terminated by the
Underwriter by notifying the Company of such termination in writing or by
telegram at or prior to the Closing Date.
In such event, the Company, the Selling Shareholder and the Underwriter
shall not be under any obligation to each other (except to the extent provided
in Sections 5 and 8 hereof).
7. CONDITIONS OF THE OBLIGATIONS OF THE COMPANY AND THE SELLING
SHAREHOLDER. The obligations of the Company and the Selling Shareholder to sell
and deliver the portion of the Shares required to be delivered as and when
specified in this Agreement are subject to the conditions that at the Closing
Date, no stop order suspending the effectiveness of the Registration Statement
shall have been issued and in effect or proceedings therefor initiated or
threatened.
8. INDEMNIFICATION
(a) The Company and the Selling Shareholder agree to indemnify and hold
harmless the Underwriter and each person, if any, who controls the Underwriter
within the meaning of the Act against any losses, claims, damages or liabilities
to which such Underwriter or such controlling person may
13
become subject under the Act or otherwise, insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) arise out
of or are based upon (i) any untrue statement or alleged untrue statement of any
material fact contained or incorporated by reference in the Registration
Statement, any Preliminary Prospectus, the Prospectus or any amendment or
supplement thereto, or (ii) the omission or alleged omission to state therein a
material fact required to be stated or incorporated therein or necessary to make
the statements therein not misleading, and will reimburse the Underwriter and
each such controlling person for any legal or other expenses reasonably incurred
by such Underwriter or such controlling person in connection with investigating
or defending any such loss, claim, damage, liability, action or proceeding;
provided, however, that the Company and the Selling Shareholder will not be
liable in any such case to the extent that (i) any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue
statement, or omission or alleged omission made or incorporated by reference in
the Registration Statement, any Preliminary Prospectus, the Prospectus, or such
amendment or supplement, in reliance upon and in conformity with written
information furnished to the Company by or through or on behalf of the
Underwriter specifically for use in the preparation thereof; or (ii) such
statement or omission was contained or made in any Preliminary Prospectus and
corrected in the Prospectus and (A) any such loss, claim, damage or liability
suffered or incurred by the Underwriter (or any person who controls the
Underwriter) resulted from an action, claim or suit by any person who purchased
Shares which are the subject thereof from such Underwriter in the offering and
(B) such Underwriter failed to deliver or provide a copy of the Prospectus to
such person at or prior to the confirmation of the sale of such Shares in any
case where such delivery is required by the Act. Notwithstanding the foregoing,
the Selling Shareholder's obligations to indemnify and hold harmless under this
Section 8 shall be limited to any loss, claim, liability, action or proceeding
arising out of the Selling Shareholder Information. The Company and the
Underwriter acknowledges that the Selling Shareholder Information constitutes
the only information furnished in writing by or on behalf of the Selling
Shareholder for inclusion in the documents referred to in the foregoing
indemnity. In no event, however, shall the aggregate liability of the Selling
Shareholder for indemnification under this Section 8(a) exceed the net proceeds
after underwriters discounts and commissions received by the Selling Shareholder
from the Underwriter in the offering. In addition, the Selling Shareholder will
not be obligated to make a payment under this subparagraph (a) for any
indemnification claims if and to the extent that payment of such claim is made
by the Company within ninety (90) days after written demand by the Underwriter.
This indemnity agreement will be in addition to any liability which the Company
may otherwise have.
(b) The Underwriter will indemnify and hold harmless the Company, each
of its directors, each of its officers who have signed the Registration
Statement, the Selling Shareholder, and each person, if any, who controls the
Company within the meaning of the Act, against any losses, claims, damages or
liabilities to which the Selling Shareholder, the Company or any such director,
officer, or controlling person may become subject under the Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions or
proceedings in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained or
incorporated by reference in the Registration Statement, any Preliminary
Prospectus, the Prospectus or any amendment or supplement thereto, or arise out
of or are based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances under which they were
made, and will reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, Selling Shareholder, partner or
controlling person in connection with investigating or defending any such loss,
claim, damage, liability, action or proceeding; provided, however, that each
Underwriter will be liable in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged
omission has been made in the Registration Statement, any Preliminary
Prospectus, the Prospectus or such amendment or supplement, in reliance upon and
in conformity with written information furnished to the Company by or through or
on behalf of the Underwriter or the Selling Shareholder specifically for use in
the preparation thereof. This indemnity agreement will be in addition to any
liability which such Underwriter may otherwise have.
(c) In case any proceeding (including any governmental investigation)
shall be instituted involving any person in respect of which indemnity may be
sought pursuant to this Section 8, such person
14
(the "indemnified party") shall promptly notify the person against whom such
indemnity may be sought (the "indemnifying party") in writing. No
indemnification provided for in Section 8(a) or (b) shall be available to any
party who shall fail to give notice as provided in this Section 8(c) if the
party to whom notice was not given was unaware of the proceeding to which such
notice would have related and was prejudiced by the failure to give such notice,
but the failure to give such notice shall not relieve the indemnifying party or
parties from any liability which it or they may have to the indemnified party
for contribution or otherwise than on account of the provisions of Section 8 (a)
or (b). In case any such proceeding shall be brought against any indemnified
party and it shall notify the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to participate therein and, to the
extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party and shall pay as incurred the fees and disbursements of such
counsel related to such proceeding. In any such proceeding, any indemnified
party shall have the right to retain its own counsel at its own expense.
Notwithstanding the foregoing, the indemnifying party shall pay as incurred the
fees and expenses of the counsel retained by the indemnified party in the event
(i) the indemnifying party and the indemnified party shall have mutually agreed
to the retention of such counsel, (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the
indemnified party and representation of both parties by the same counsel would
be inappropriate due to actual or potential differing interests between them, or
(iii) the indemnifying party shall have failed to assume the defense and employ
counsel reasonably acceptable to the indemnified party within a reasonable
period of time after notice of commencement of the action. It is understood that
the indemnifying party shall not, in connection with any proceeding or related
proceedings in the same jurisdiction, be liable for the reasonable fees and
expenses of more than one separate firm for all such indemnified parties. Such
firm shall be designated in writing by you in the case of parties indemnified
pursuant to Section 8(a) and by the Company and the Selling Shareholder in the
case of parties indemnified pursuant to Section 8(b). The indemnifying party
shall not be liable for any settlement of any proceeding effected without its
written consent but if settled with such consent or if there be a final judgment
for the plaintiff, the indemnifying party agrees to indemnify the indemnified
party from and against any loss or liability by reason of such settlement or
judgment.
(d) If the indemnification provided for in this Section 8 is
unavailable to or insufficient to hold harmless an indemnified party under
Section 8(a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) in such proportion as
is appropriate to reflect the relative benefits received by the Company, the
Selling Shareholder and the Underwriter from the offering of the Shares. If,
however, the allocation provided by the immediately preceding sentence is not
permitted by applicable law, then each indemnifying party shall contribute to
such amount paid or payable by such indemnified party in such proportion as is
appropriate to reflect not only such relative benefits but also the relative
fault of the Company, the Selling Shareholder and the Underwriter in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities (or actions or proceedings in respect thereof), as well as any
other relevant equitable considerations. The relative benefits received by the
Company, the Selling Shareholder and the Underwriter shall be deemed to be in
the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company and the Selling Shareholder bear to
the total underwriting discounts and commissions received by the Underwriter, in
each case as set forth in the table on the cover page of the Prospectus. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the
Company, the Selling Shareholder or the Underwriter and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.
The Company, the Selling Shareholder and the Underwriter agree that it
would not be just and equitable if contributions pursuant to this Section 8(d)
were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable considerations referred to above in
15
this Section 8(d). The amount paid or payable by an indemnified party as a
result of the losses, claims, damages or liabilities (or actions or proceedings
in respect thereof) referred to above in this Section 8(d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this subsection (d), (i) the Underwriter shall
not be required to contribute any amount in excess of the underwriting discounts
and commissions applicable to the Shares purchased by such Underwriter, (ii) no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation and (iii) the Selling Shareholder
shall not be required to contribute any amount in excess of (a) the proceeds
received by the Selling Shareholder from the Underwriter in the offering after
deducting underwriting discounts and commissions plus (b) any damages previously
paid by the Selling Shareholder. Notwithstanding the foregoing, the Selling
Shareholder shall not be required to contribute in respect of any losses,
claims, liabilities or judgments (or expenses incurred in connection therewith)
unless the same arise with respect to the Selling Shareholder Information. The
Underwriter's obligations in this Section 8(d) to contribute are several in
proportion to their respective underwriting obligations and not joint.
(e) In any proceeding relating to the Registration Statement, any
Preliminary Prospectus, the Prospectus or any supplement or amendment thereto,
each party against whom contribution may be sought under this Section 8 hereby
consents to the jurisdiction of any court having jurisdiction over any other
contributing party, agrees that process issuing from such court may be served
upon him or it by any other contributing party and consents to the service of
such process and agrees that any other contributing party may join him or it as
an additional defendant in any such proceeding in which such other contributing
party is a party.
9. NOTICES. All communications hereunder shall be in writing and,
except as otherwise provided herein, will be mailed, delivered or telegraphed
and confirmed as follows: if to the Underwriter, to Goldman, Sachs & Co., 85
Broad Street, New York, New York 10004, Attention: Registration Department; if
to the Company, to Lamar Advertising Company, 5551 Corporate Boulevard, Baton
Rouge, Louisiana, 70808; Attention: Kevin P. Reilly, Jr., President; with a copy
to Palmer & Dodge LLP, One Beacon Street, Boston, MA 02108, Attention: Stanley
Keller; if to the Selling Shareholder, c/o Clear Channel Communications, Inc.,
200 East Basse, San Antonio, Texas 78209, Attention: Randall T. Mays, with a
copy to Akin, Gump, Strauss, Hauer & Feld, L.L.P., 300 Convent Street, Suite
1500, San Antonio, Texas 78205, Attention: Stephen C. Mount.
10. TERMINATION. This Agreement may be terminated by you by notice to
the Company and the Selling Shareholder as follows:
(a) at any time after the date hereof and prior to the Closing if any
of the following has occurred: (i) since the respective dates as of which
information is given in the Registration Statement and the Prospectus, any
material adverse change or any development involving a prospective material
adverse change in or affecting the condition, financial or otherwise, of the
Company and the Subsidiaries taken as a whole or the earnings, business affairs,
management or business prospects of the Company and the Subsidiaries taken as a
whole, whether or not arising in the ordinary course of business, (ii) any
outbreak or escalation of hostilities involving the United States or declaration
of war or national emergency after the date hereof or other national or
international calamity or crisis or any change in financial, political or
economic conditions if the effect of such outbreak, escalation, declaration,
emergency, calamity, crisis or change on the financial markets of the United
States is so material and adverse that it would, in your reasonable judgment,
make the offering or delivery of the Shares on the terms and in the manner
contemplated in the Prospectus impracticable or inadvisable, (iii) trading in
securities on the Nasdaq, the New York Stock Exchange or the American Stock
Exchange shall have been suspended or materially limited (other than limitations
on hours or numbers of days of trading) or minimum prices shall have been
established for securities on either such Exchange, (iv) trading in the
Company's securities on the Nasdaq shall have been suspended or materially
limited (other than limitations on hours or numbers of days of trading) or
minimum prices shall have been established for such securities if the effect of
such suspension
16
or limitation is so material and adverse that the offering or delivery of the
Shares on the terms and in the manner contemplated in the Prospectus is
impracticable or inadvisable, (v) declaration of a banking moratorium by either
federal or New York State authorities or a material disruption in commercial
banking or securities settlement or clearance services in the United States if
the effect of such declaration or disruption is so material and adverse that it
makes the offering or delivery of the Shares on the terms and in the manner
contemplated in the Prospectus impracticable or inadvisable, (vi) any
downgrading in the rating of the Company's debt securities by any "nationally
recognized statistical rating organization" (as defined for purposes of Rule
436(g) under the Securities Exchange Act of 1934, as amended); or (vii) the
taking of any action by any governmental body or agency in respect of its
monetary or fiscal affairs which in your reasonable opinion has a material
adverse effect on the securities markets in the United States or elsewhere; or
(b) as provided in Section 6 of this Agreement.
11. SUCCESSORS. This Agreement has been and is made solely for the
benefit of the Underwriter, the Company and the Selling Shareholder and their
respective successors, executors, administrators, heirs and assigns, and the
officers, directors and controlling persons referred to herein, and no other
person will have any right or obligation hereunder. The term "successors" shall
not include any purchaser of the Shares merely because of such purchase.
12. MISCELLANEOUS. The reimbursement, indemnification and contribution
agreements contained in this Agreement and the representations, warranties and
covenants in this Agreement shall remain in full force and effect regardless of
(a) any termination of this Agreement, (b) any investigation made by or on
behalf of the Underwriter or controlling person thereof, by or on behalf of the
Company or its directors or officers or by or on behalf of the Selling
Shareholder and (c) delivery of and payment for the Shares under this Agreement.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.
This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
17
If the foregoing letter is in accordance with your understanding of our
agreement, please sign and return to us the enclosed duplicates hereof,
whereupon it will become a binding agreement among the Company, the Selling
Shareholder and the Underwriter in accordance with its terms.
Very truly yours,
Lamar Advertising Company
By: /s/ Keith A. Istre
------------------------------------------
Name: Keith A. Istre
Title: Chief Financial Officer
Selling Shareholder
AMFM Operating, Inc.
By: /s/ Juliana F. Hill
---------------------------------
Name: Juliana F. Hill
Title: Senior Vice President - Finance
The foregoing Underwriting Agreement is hereby confirmed and accepted as of the
date first above written.
GOLDMAN, SACHS & CO.
By /s/ Goldman Sachs & Co.
- ----------------------------------
(Goldman, Sachs & Co.)
18
SCHEDULE I
Subsidiaries of Lamar Advertising Company *
State of Other Jurisdiction of
Name Incorporation or Organization
- ---- -----------------------------
Lamar Media Corp. Delaware
American Signs, Inc. Washington
Canadian TODS Limited Nova Scotia
Colorado Logos, Inc. Colorado
Delaware Logos, LLC Delaware
Florida Logos, Inc. Florida
Hardin Development Corporation Florida
Kansas Logos, Inc. Kansas
Kentucky Logos, LLC Kentucky
Lamar Advertising of Colorado Springs, Inc. Colorado
Lamar Advertising of Kentucky, Inc. Kentucky
Lamar Advertising of Michigan, Inc. Michigan
Lamar Advertising of South Dakota, Inc. South Dakota
Lamar Advertising of Youngstown, Inc. Delaware
Lamar Air, L.L.C. Louisiana
Lamar Electrical, Inc. Louisiana
Lamar OCI North Corporation Delaware
Lamar OCI South Corporation Mississippi
Lamar Pensacola Transit, Inc. Florida
Lamar Tennessee, L.L.C. Tennessee
Lamar Texas General Partner, Inc. Louisiana
Lamar Texas Limited Partnership Texas
Michigan Logos, Inc. Michigan
Minnesota Logos, Inc. Minnesota
Missouri Logos, LLC Missouri
Nebraska Logos, Inc. Nebraska
Nevada Logos, Inc. Nevada
New Mexico Logos, Inc. New Mexico
Ohio Logos, Inc. Ohio
Outdoor Promotions West, LLC Delaware
Parsons Development Company Florida
Revolution Outdoor Advertising, Inc. Florida
South Carolina Logos, Inc. South Carolina
Tennessee Logos, Inc. Tennessee
Texas Logos, L.P. Texas
TLC Properties II, Inc. Texas
TLC Properties, Inc. Louisiana
TLC Properties, L.L.C. Louisiana
Transit America Las Vegas, L.L.C. Delaware
Triumph Outdoor Holdings, LLC Delaware
Triumph Outdoor Louisiana, LLC Delaware
Triumph Outdoor Rhode Island, LLC Delaware
Utah Logos, Inc. Utah
Virginia Logos, LLC Virginia
The Lamar Company, L.L.C. Louisiana
Lamar Advertising of Penn, LLC Delaware
Lamar Advertising of Louisiana, L.L.C. Louisiana
Lamar Florida, Inc. Florida
Lamar Advan, Inc. Pennsylvania
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State of Other Jurisdiction of
Name Incorporation or Organization
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Lamar Advertising of Iowa, Inc. Iowa
Lamar T.T.R., L.L.C. Arizona
Lamar Central Outdoor, Inc. Delaware
Lamar Advantage GP Company, LLC Delaware
Lamar Advantage LP Group, LLC Delaware
Lamar Advantage Outdoor Company, L.P. Delaware
Lamar Advantage Holding Company Delaware
Lamar Oklahoma Holding Company, Inc. Oklahoma
Lamar Advertising of Oklahoma, Inc. Oklahoma
Lamar Benches, Inc. Oklahoma
Lamar 1-40 West, Inc. Oklahoma
Georgia Logos, L.L.C. Georgia
Mississippi Logos, L.L.C. Mississippi
New Jersey Logos, L.L.C. NewJersey
Oklahoma Logos, L.L.C. Oklahoma
Interstate Logos, L.L.C. Louisiana
LC Billboard L.L.C. Delaware
Lamar Ohio Outdoor Holding Corp. Ohio
Outdoor Marketing Systems, Inc. Pennsylvania
Outdoor Marketing Systems, LLC Pennsylvania
Lamar Advertising Southwest, Inc. Nevada
Lamar DOA Tennessee Holdings, Inc. Delaware
Lamar DOA Tennessee, Inc. Delaware
Maine Logos, L.L.C. Maine
Trans West Outdoor Advertising, Inc. California
* All subsidiaries are 100% owned by Lamar Advertising Company, except for
Missouri Logos, a Partnership, in which Lamar Advertising Company holds a
66-2/3 % partnership interest.
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