EXHIBIT 10.2
NOTICE OF INCREMENTAL FACILITY COMMITMENT
(MAY 2004)
Dated as of: May 28, 2004
GRAY TELEVISION, INC. (the "Borrower"), in connection with that certain
Fourth Amended and Restated Loan Agreement dated as of October 25, 2002 (as the
same has been or may be amended, modified, restated, and supplemented from time
to time, the "Loan Agreement") by and among the Borrower, the various financial
institutions that are parties thereto (the "Lenders"), Wachovia Bank, National
Association, as administrative agent (the "Administrative Agent"), Bank of
America, N.A., as syndication agent, and Deutsche Bank Trust Company Americas,
as documentation agent, hereby certifies that:
1. The Borrower has obtained an agreement from certain financial
institutions to provide an Incremental Facility Commitment in the aggregate
amount of THREE HUNDRED SEVENTY FIVE MILLION DOLLARS ($375,000,000.00). The
Applicable Margin and terms for repayment of the Incremental Facility Commitment
are set forth on Schedule 1 attached hereto and in Article 2 of the Loan
Agreement; provided, however, that the terms of the Loan Agreement shall control
to the extent such terms conflict with those set forth on Schedule 1 attached
hereto. The Incremental Facility Commitment and the Incremental Facility Loan
described herein are hereinafter referred to as the "May 2004 Incremental
Facility Commitment" and the "May 2004 Incremental Facility Loan," respectively.
2. All of the representations and warranties of the Borrower made under
the Loan Agreement (including, without limitation, all representations and
warranties with respect to the Borrower's Subsidiaries) and the other Loan
Documents are as of the date hereof, and will be as of the effective date of
such May 2004 Incremental Facility Commitment, true and correct in all material
respects.
3. There does not exist, as of this date, and there will not exist
after giving effect to the May 2004 Incremental Facility Commitment, any Default
under the Loan Agreement.
4. All Necessary Authorizations have been obtained or made, are in full
force and effect and are not subject to any pending or threatened reversal or
cancellation.
5. Revised projections which demonstrate the Borrower's ability to
timely repay any Incremental Facility Loans made under the May 2004 Incremental
Facility Commitment and to timely comply with the covenants contained in
Sections 7.8, 7.9, 7.10 and 7.11 of the Loan Agreement have been provided to the
Lenders on the Gray Television, Inc. Intralinks work space.
Capitalized terms used in this Notice of Incremental Facility Commitment
and not otherwise defined herein are used as defined in the Loan Agreement.
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IN WITNESS WHEREOF, the Borrower, acting through an Authorized Signatory,
has signed this Notice of Incremental Facility Commitment as of the day and year
first above written.
GRAY TELEVISION, INC.
By: /s/ James C. Ryan
-----------------------------------
Name: James C. Ryan
Title: Senior Vice President and
Chief Financial Officer
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Schedule 1
To
Notice of Incremental Facility Commitment (May 2004)
MAY 2004 INCREMENTAL FACILITY COMMITMENT TERMS
Incremental
Facility Loan: The financial institutions who issued an
Incremental Facility Commitment pursuant to
the Loan Agreement, have agreed severally,
in accordance with their respective
Incremental Facility Commitment Ratios, and
not jointly, upon the terms and subject to
the conditions of this Schedule 1 and the
Loan Agreement, to make a term loan to the
Borrower on the Incremental Facility
Commitment Effective Date (as set forth
below) in an amount equal to the aggregate
Incremental Facility Commitment.
Incremental Facility
Commitment Effective Date: May 28, 2004 (the "Effective Date").
Incremental Facility
Maturity Date: June 30, 2011 or such earlier date as
payment of the May 2004 Incremental Facility
Loan shall be due in accordance with the
terms of the Loan Agreement (whether by
acceleration or otherwise).
Purpose: The proceeds of the May 2004 Incremental
Facility Loan shall be used first to prepay
on the Effective Date in full the
outstanding amount of the Incremental
Facility Loans made pursuant to the Notice
of Incremental Facility Commitment dated
June 9, 2003, then for general corporate
purposes.
Scheduled Repayments: Commencing on March 31, 2005, the principal
balance of the May 2004 Incremental Facility
Loan outstanding on the Effective Date shall
be repaid in consecutive quarterly
installments on the last day of each fiscal
quarter (each a "Repayment Date") ending
during the periods set forth below until
paid in full in such amounts as follows:
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Percentage of principal of the May 2004
Incremental Facility Loan outstanding on the
Repayment Dates Effective Date Due on each Repayment Date
--------------- --------------------------------------------
March 31, 2005, June 30, 2005,
September 30, 2005 and December 31, 2005 0.25%
March 31, 2006, June 30, 2006,
September 30, 2006 and December 31, 2006 0.25%
March 31, 2007, June 30, 2007,
September 30, 2007 and December 31, 2007 0.25%
March 31, 2008, June 30, 2008,
September 30, 2008 and December 31, 2008 0.25%
March 31, 2009, June 30, 2009,
September 30, 2009 and December 31, 2009 0.25%
March 31, 2010 and June 30, 2010 0.25%
September 30, 2010 and December 31, 2010 23.50%
March 31, 2011 and June 30, 2011 23.75%
Applicable Margin: The Applicable Margin for the May 2004
Incremental Facility Loan shall be (i) 1.00%
for Base Rate Loans and (ii) 1.75% for LIBOR
Rate Loans.
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